Leases (Tables)

3 Months Ended

Mar. 31, 2021

Summary of Operating and Finance Lease Right-of-Use Assets and Related Lease Liabilities

Below is a summary of the operating and finance lease right-of-use assets and related lease liabilities, as well as the weighted average lease term (in years) and weighted average discount rate for each of the lease classifications as of March 31, 2021 and December 31, 2020.

(Dollars in thousands)	March 31, 2021						December 31, 2020
	Operating Leases			Finance Lease			Operating Leases			Finance Lease
Right of use asset	$	10,791		$	3,222		$	10,157		$	3,267
Lease liability	$	11,828		$	3,446		$	11,200		$	3,467
Weighted average remaining lease term (in years)		7.81			17.92			8.05			18.17
Weighted average discount rate		3.15	%		3.81	%		3.30	%		3.81	%

Summary of Lease Costs

A summary of lease costs during the three months ended March 31, 2021 and 2020 are presented below. Interest expense on finance lease liabilities is included in other interest expense, while all other lease costs are included in occupancy expense on Mid Penn’s Consolidated Statements of Income.

(Dollars in thousands)	Three Months Ended March 31,
	2021			2020
Finance lease cost:
Amortization of right-of-use asset	$	45		$	45
Interest expense on lease liability		33			34
Total finance lease cost		78			79
Operating lease cost		516			528
Short-term and equipment lease cost		10			9
Variable lease cost		—			—
Sublease income		(9	)		(6	)
Total lease costs	$	595		$	610

Summary of Cash Paid for Amounts Included in Measurement of Lease Liabilities

A summary of cash paid for amounts included in the measurement of lease liabilities is presented below.

(Dollars in thousands)	Three Months Ended
	March 31, 2021		March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	33	$	34
Operating cash flows from operating leases		522		544
Financing cash flows from finance leases		21		21

Summary of Maturity Analysis of Operating and Finance Lease Liabilities and Reconciliation of Undiscounted Cash Flows

A maturity analysis of operating and finance lease liabilities and a reconciliation of the undiscounted cash flows to the total operating and finance lease liability amounts is presented below.

(Dollars in thousands)	March 31, 2021
	Operating Leases			Finance Lease
Lease payments due:
Within one year	$	1,557		$	163
After one but within two years		2,061			217
After two but within three years		1,815			217
After three but within four years		1,760			252
After four but within five years		1,373			259
After five years		4,810			3,733
Total undiscounted cash flows		13,376			4,841
Discount on cash flows		(1,548	)		(1,395	)
Total lease liability	$	11,828		$	3,446