Loans and Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2021

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

Type of Loan Portfolio Summarized by the Aggregate Risk Rating

As of March 31, 2021 and December 31, 2020, the types of loans in Mid Penn’s portfolio, summarized using Mid Penn’s internal risk rating system between those rated “pass” (net of deferred fees and costs of $17,992,000 as of March 31, 2021 and $9,084,000 as of December 31, 2020) which comprise the vast majority of the portfolio, and those classified as “special mention” and “substandard”, are as follows:

(Dollars in thousands)			Special
March 31, 2021	Pass		Mention		Substandard		Total
Commercial and industrial	$	951,489	$	10,272	$	2,284	$	964,045
Commercial real estate		1,119,845		8,905		6,910		1,135,660
Commercial real estate - construction		264,915		—		30		264,945
Residential mortgage		196,566		52		1,170		197,788
Home equity		73,087		2		2,334		75,423
Consumer		8,375		—		—		8,375
	$	2,614,277	$	19,231	$	12,728	$	2,646,236

(Dollars in thousands)			Special
December 31, 2020	Pass		Mention		Substandard		Total
Commercial and industrial	$	739,306	$	9,928	$	3,120	$	752,354
Commercial real estate		1,084,123		1,708		13,825		1,099,656
Commercial real estate - construction		248,882		—		31		248,913
Residential mortgage		200,544		53		1,244		201,841
Home equity		71,856		3		2,365		74,224
Consumer		7,053		—		—		7,053
	$	2,351,764	$	11,692	$	20,585	$	2,384,041

Impaired Loans by Loan Portfolio Class

Impaired loans by loan portfolio class as of March 31, 2021 and December 31, 2020 are summarized as follows:

	March 31, 2021						December 31, 2020
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial and industrial	$	143	$	174	$	—	$	899	$	931	$	—
Commercial real estate		595		973		—		8,215		8,574		—
Commercial real estate - construction		30		34		—		31		34		—
Residential mortgage		758		786		—		818		842		—
Home equity		2,334		2,337		—		2,365		2,395		—
Consumer		—		—		—		—		—		—
With no related allowance recorded and acquired with credit deterioration:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate		1,408		1,690		—		1,419		1,693		—
Commercial real estate - construction		—		—		—		—		—		—
Residential mortgage		309		557		—		323		568		—
Home equity		—		12		—		—		13		—
Consumer		—		—		—		—		—		—
With an allowance recorded:
Commercial and industrial	$	225	$	253	$	68	$	553	$	574	$	533
Commercial real estate		874		926		263		887		994		274
Commercial real estate - construction		—		—		—		—		—		—
Residential mortgage		—		—		—		—		—		—
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total Impaired Loans:
Commercial and industrial	$	368	$	427	$	68	$	1,452	$	1,505	$	533
Commercial real estate		2,877		3,589		263		10,521		11,261		274
Commercial real estate - construction		30		34		—		31		34		—
Residential mortgage		1,067		1,343		—		1,141		1,410		—
Home equity		2,334		2,349		—		2,365		2,408		—
Consumer		—		—		—		—		—		—

Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class

The average recorded investment of impaired loans and related interest income recognized for the three months ended March 31, 2021 and 2020 are summarized as follows:

	Three Months Ended
	March 31, 2021				March 31, 2020
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial and industrial	$	753	$	—	$	890	$	—
Commercial real estate		4,405		—		7,430		—
Commercial real estate - construction		31		—		40		—
Residential mortgage		787		8		782		6
Home equity		2,350		—		24		—
Consumer		—		—		—		—
With no related allowance recorded and acquired with credit deterioration:
Commercial and industrial	$	—	$	—	$	2	$	—
Commercial real estate		1,414		—		1,420		—
Commercial real estate - construction		—		—		—		—
Residential mortgage		317		—		374		—
Home equity		—		—		1		—
Consumer		—		—		—		—
With an allowance recorded:
Commercial and industrial	$	157	$	—	$	4	$	—
Commercial real estate		880		—		550		—
Commercial real estate - construction		—		—		—		—
Residential mortgage		—		—		—		—
Home equity		—		—		—		—
Consumer		—		—		—		—
Total Impaired Loans:
Commercial and industrial	$	910	$	—	$	896	$	—
Commercial real estate		6,699		—		9,400		—
Commercial real estate - construction		31		—		40		—
Residential mortgage		1,104		8		1,156		6
Home equity		2,350		—		25		—
Consumer		—		—		—		—

Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration

Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of March 31, 2021 and December 31, 2020 are summarized as follows:

(Dollars in thousands)	March 31, 2021		December 31, 2020
Commercial and industrial	$	368	$	1,452
Commercial real estate		2,877		10,520
Commercial real estate - construction		30		31
Residential mortgage		611		679
Home equity		2,334		2,365
	$	6,220	$	15,047

Loan Portfolio Summarized by the Past Due Status

The classes of the loan portfolio summarized by the past due status as of March 31, 2021 and December 31, 2020 are summarized as follows:

													Loans
(Dollars in thousands)	30-59		60-89		Greater								Receivable >
	Days Past		Days Past		than 90		Total Past						90 Days and
March 31, 2021	Due		Due		Days		Due		Current		Total Loans		Accruing
Commercial and industrial	$	800	$	32	$	336	$	1,168	$	962,877	$	964,045	$	—
Commercial real estate		101		555		863		1,519		1,132,733		1,134,252		—
Commercial real estate - construction		—		—		—		—		264,945		264,945		—
Residential mortgage		236		1		227		464		197,015		197,479		—
Home equity		309		—		2,312		2,621		72,802		75,423		—
Consumer		—		4		—		4		8,371		8,375		—
Loans acquired with credit deterioration:
Commercial and industrial		—		—		—		—		—		—		—
Commercial real estate		—		—		1,395		1,395		13		1,408		—
Commercial real estate - construction		—		—		—		—		—		—		—
Residential mortgage		—		—		159		159		150		309		—
Home equity		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	1,446	$	592	$	5,292	$	7,330	$	2,638,906	$	2,646,236	$	—

													Loans
(Dollars in thousands)	30-59		60-89		Greater								Receivable >
	Days Past		Days Past		than 90		Total Past						90 Days and
December 31, 2020	Due		Due		Days		Due		Current		Total Loans		Accruing
Commercial and industrial	$	365	$	1,017	$	1,377	$	2,759	$	749,595	$	752,354	$	—
Commercial real estate		1,096		—		7,668		8,764		1,089,473		1,098,237		—
Commercial real estate - construction		—		—		—		—		248,913		248,913		—
Residential mortgage		126		—		282		408		201,110		201,518		—
Home equity		71		22		2,343		2,436		71,788		74,224		—
Consumer		—		6		—		6		7,047		7,053		—
Loans acquired with credit deterioration:
Commercial and industrial		—		—		—		—		—		—		—
Commercial real estate		9		—		1,402		1,411		8		1,419		—
Commercial real estate - construction		—		—		—		—		—		—		—
Residential mortgage		—		—		168		168		155		323		—
Home equity		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	1,667	$	1,045	$	13,240	$	15,952	$	2,368,089	$	2,384,041	$	—

Allowance and Recorded Investment in Financing Receivables

The following tables summarize the allowance and recorded investments in loans receivable.

(Dollars in thousands)
As of, and for the three months ended, March 31, 2021	Commercial and industrial			Commercial real estate		Commercial real estate - construction			Residential mortgage			Home equity		Consumer			Unallocated			Total
Allowance for loan and lease losses:
Beginning balance,
January 1, 2021	$	3,066		$	8,655	$	134		$	429		$	507	$	1		$	590		$	13,382
Charge-offs		(859	)		—		—			(3	)		—		(3	)		—			(865	)
Recoveries		1			56		—			9			—		8			—			74
Provisions (credits)		780			233		(12	)		3			21		(5	)		(20	)		1,000
Ending balance,
March 31, 2021		2,988			8,944		122			438			528		1			570			13,591
Individually evaluated for impairment		68			263		—			—			—		—			—			331
Ending balance:
Collectively evaluated for impairment	$	2,920		$	8,681	$	122		$	438		$	528	$	1		$	570		$	13,260
Loans receivables:
Ending balance	$	964,045		$	1,135,660	$	264,945		$	197,788		$	75,423	$	8,375		$	—		$	2,646,236
Ending balance: individually evaluated for impairment		368			1,469		30			758			2,334		—			—			4,959
Ending balance: acquired with credit deterioration		—			1,408		—			309			—		—			—			1,717
Ending balance: collectively evaluated for impairment	$	963,677		$	1,132,783	$	264,915		$	196,721		$	73,089	$	8,375		$	—		$	2,639,560

(Dollars in thousands)
December 31, 2020	Commercial and industrial		Commercial real estate		Commercial real estate - construction		Residential mortgage		Home equity		Consumer		Unallocated		Total
Allowance for loan and lease losses:
Ending balance	$	3,066	$	8,655	$	134	$	429	$	507	$	1	$	590	$	13,382
Ending balance: individually evaluated for impairment		533		274		—		—		—		—		—		807
Ending balance: collectively evaluated for impairment	$	2,533	$	8,381	$	134	$	429	$	507	$	1	$	590	$	12,575
Loans receivable:
Ending balance	$	752,354	$	1,099,656	$	248,913	$	201,841	$	74,224	$	7,053	$	—	$	2,384,041
Ending balance: individually evaluated for impairment		1,452		9,102		31		818		2,365		—		—		13,768
Ending balance: acquired with credit deterioration		—		1,419		—		323		—		—		—		1,742
Ending balance: collectively evaluated for impairment	$	750,902	$	1,089,135	$	248,882	$	200,700	$	71,859	$	7,053	$	—	$	2,368,531

(Dollars in thousands)
As of, and for the three months ended, March 31, 2020	Commercial and industrial			Commercial real estate		Commercial real estate - construction		Residential mortgage		Home equity		Consumer			Unallocated		Total
Allowance for loan and lease losses:
Beginning balance,
January 1, 2020	$	2,341		$	6,259	$	51	$	417	$	442	$	2		$	3	$	9,515
Charge-offs		(43	)		—		—		—		—		(15	)		—		(58	)
Recoveries		1			1		—		3		—		2			—		7
Provisions (credits)		128			370		6		16		6		13			11		550
Ending balance,
March 31, 2020		2,427			6,630		57		436		448		2			14		10,014
Individually evaluated for impairment		3			190		—		—		—		—			—		193
Ending balance:
collectively evaluated for impairment	$	2,424		$	6,440	$	57	$	436	$	448	$	2		$	14	$	9,821
Loans receivables:
Ending balance	$	351,339		$	939,995	$	205,248	$	230,047	$	64,610	$	6,910		$	—	$	1,798,149
Ending balance: individually evaluated for impairment		897			7,649		39		748		24		—			—		9,357
Ending balance: acquired with credit deterioration		—			1,423		—		368		1		—			—		1,792
Ending balance: collectively evaluated for impairment	$	350,442		$	930,923	$	205,209	$	228,931	$	64,585	$	6,910		$	—	$	1,787,000

Troubled Debt Restructurings

The recorded investments in troubled debt restructured loans at March 31, 2021 and December 31, 2020 are as follows:

(Dollars in thousands)	Pre-Modification		Post-Modification
March 31, 2021	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	$	8	$	8	$	6
Commercial real estate		1,806		1,707		911
Commercial real estate - construction		40		40		30
Residential mortgage		728		725		501
	$	2,582	$	2,480	$	1,448

(Dollars in thousands)	Pre-Modification		Post-Modification
December 31, 2020	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	$	8	$	8	$	6
Commercial real estate		1,806		1,707		933
Commercial real estate - construction		40		40		31
Residential mortgage		728		725		510
	$	2,582	$	2,480	$	1,480

Schedule of Accretion of Purchased Impaired Loan

The following tables provide activity for the accretable yield of acquired impaired loans from the Phoenix (March 2015), Scottdale (January 2018), and First Priority (July 2018) acquisitions for the three months ended March 31, 2021 and 2020.

(Dollars in thousands)
	Three Months Ended March 31,
	2021		2020
Accretable yield, beginning of period	$	40	$	89
Accretable yield amortized to interest income		—		(17	)
Accretable yield, end of period	$	40	$	72