Loans and Allowance for Loan and Lease Losses (Tables)

12 Months Ended

Dec. 31, 2021

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

Type of Loan Portfolio Summarized by the Aggregate Risk Rating

The types of loans in Mid Penn’s portfolio, summarized by those rated as “pass” (net of deferred fees and costs of $6,264,000 as of December 31, 2021 and $9,084,000 as of December 31, 2020), and the loans classified as “special mention” and “substandard” within Mid Penn’s internal risk rating system as of December 31, 2021 and December 31, 2020, are as follows:

(Dollars in thousands)
December 31, 2021	Pass		Special Mention		Substandard		Total
Commercial and industrial	$	606,484	$	10,321	$	2,757	$	619,562
Commercial real estate		1,601,196		35,508		31,438		1,668,142
Commercial real estate - construction		371,337		—		1,397		372,734
Residential mortgage		319,862		294		3,067		323,223
Home equity		106,853		534		2,919		110,306
Consumer		10,429		—		—		10,429
	$	3,016,161	$	46,657	$	41,578	$	3,104,396

(Dollars in thousands)
December 31, 2020	Pass		Special 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 December 31, 2021 and 2020 are summarized as follows:

	December 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	$	—	$	31	$	—	$	899	$	931	$	—
Commercial real estate		854		1,243		—		8,215		8,574		—
Commercial real estate - construction		22		27		—		31		34		—
Residential mortgage		1,259		1,295		—		818		842		—
Home equity		2,377		2,377		—		2,365		2,395		—
Consumer		—		—		—		—		—		—
With no related allowance recorded and acquired with credit deterioration: *
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate		2,231		2,909		—		1,419		1,693		—
Commercial real estate - construction		1,196		1,469		—		—		—		—
Residential mortgage		1,362		1,847		—		323		568		—
Home equity		86		111		—		—		13		—
Consumer		—		—		—		—		—		—
With an allowance recorded:
Commercial and industrial	$	308	$	339	$	67	$	553	$	574	$	533
Commercial real estate		287		359		121		887		994		274
Commercial real estate - construction		—		—		—		—		—		—
Residential mortgage		—		—		—		—		—		—
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total:
Commercial and industrial	$	308	$	370	$	67	$	1,452	$	1,505	$	533
Commercial real estate		3,372		4,511		121		10,521		11,261		274
Commercial real estate - construction		1,218		1,496		—		31		34		—
Residential mortgage		2,621		3,142		—		1,141		1,410		—
Home equity		2,463		2,488		—		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 years ended December 31, 2021, 2020, and 2019 are summarized as follows:

	December 31, 2021				December 31, 2020				December 31, 2019
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial and industrial	$	303	$	2	$	1,136	$	—	$	178	$	3
Commercial real estate		2,308		2		9,379		5		3,363		20
Commercial real estate - construction		26		—		44		—		32		—
Residential mortgage		974		26		998		26		854		30
Home equity		2,367		2		1,801		—		27		—
Consumer		—		—		—		—		—		—
With no related allowance recorded and acquired with credit deterioration:
Commercial and industrial	$	—	$	—	$	1	$	—	$	18	$	—
Commercial real estate		1,485		—		1,423		—		1,597		—
Commercial real estate - construction		122		—		—		—		—		—
Residential mortgage		401		—		361		—		991		—
Home equity		8		—		1		—		4		—
Consumer		—		—		—		—		—		—
With an allowance recorded:
Commercial and industrial	$	211	$	—	$	205	$	—	$	962	$	—
Commercial real estate		1,011		—		752		—		424		—
Commercial real estate - construction		—		—		—		—		147		—
Residential mortgage		—		—		—		—		—		—
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total:
Commercial and industrial	$	514	$	2	$	1,342	$	—	$	1,158	$	3
Commercial real estate		4,804		2		11,554		5		5,384		20
Commercial real estate - construction		148		—		44		—		179		—
Residential mortgage		1,375		26		1,359		26		1,845		30
Home equity		2,375		2		1,802		—		31		—

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 December 31, 2021 and 2020 are summarized as follows:

(Dollars in thousands)
	2021		2020
Commercial and industrial	$	308	$	1,452
Commercial real estate		3,372		10,520
Commercial real estate - construction		1,218		31
Residential mortgage		2,186		679
Home equity		2,463		2,365
	$	9,547	$	15,047

Loan Portfolio Summarized by the Past Due Status

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

(Dollars in thousands)
December 31, 2021	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans		Loans Receivable > 90 Days and Accruing
Commercial and industrial	$	1,378	$	62	$	404	$	1,844	$	617,718	$	619,562	$	96
Commercial real estate		32		55		769		856		1,665,055		1,665,911		—
Commercial real estate - construction		—		—		205		205		371,333		371,538		205
Residential mortgage		1,246		205		1,002		2,453		319,408		321,861		212
Home equity		403		—		2,377		2,780		107,440		110,220		—
Consumer		6		2		2		10		10,419		10,429		2
Loans acquired with credit deterioration:
Commercial and industrial		—		—		—		—		—		—		—
Commercial real estate		—		3		1,628		1,631		600		2,231		—
Commercial real estate - construction		—		—		—		—		1,196		1,196		—
Residential mortgage		54		—		818		872		490		1,362		—
Home equity		—		—		—		—		86		86		—
Consumer		—		—		—		—		—		—		—
Total	$	3,119	$	327	$	7,205	$	10,651	$	3,093,745	$	3,104,396	$	515

(Dollars in thousands)
December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans		Loans Receivable > 90 Days and 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 for Loan Losses and Recorded Investment in Financing Receivables

Activity in the allowance for loan and lease losses for the years ended December 31, 2021, 2020, and 2019, and the recorded investment in loans receivable as of December 31, 2021, 2020, and 2019 are as follows:

(Dollars in thousands)
Dec. 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	$	3,066		$	8,655		$	134		$	429		$	507	$	1		$	590	$	13,382
Charge-offs		(866	)		(1,044	)		(23	)		(13	)		—		(42	)		—		(1,988	)
Recoveries		13			207			8			11			—		19			—		258
Provisions (credits)		1,226			1,597			(81	)		32			53		24			94		2,945
Ending balance		3,439			9,415			38			459			560		2			684		14,597
Ending balance:    individually    evaluated for    impairment		67			121			—			—			—		—			—		188
Ending balance:    collectively    evaluated for    impairment	$	3,372		$	9,294		$	38		$	459		$	560	$	2		$	684	$	14,409
Loans receivable:
Ending balance	$	619,562		$	1,668,142		$	372,734		$	323,223		$	110,306	$	10,429		$	—	$	3,104,396
Ending balance:    individually    evaluated for    impairment		308			1,141			22			1,259			2,377		—			—		5,107
Ending balance:    acquired with    credit    deterioration		—			2,231			1,196			1,362			86		—			—		4,875
Ending balance:    collectively    evaluated for    impairment	$	619,254		$	1,664,770		$	371,516		$	320,602		$	107,843	$	10,429		$	—	$	3,094,414

(Dollars in thousands)
Dec. 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	$	2,341		$	6,259		$	51		$	417		$	442	$	2		$	3	$	9,515
Charge-offs		(45	)		(258	)		(7	)		(4	)		-		(58	)		—		(372	)
Recoveries		3			1			2			3			3		27			—		39
Provisions (credits)		767			2,653			88			13			62		30			587		4,200
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)
Dec. 31, 2019	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	$	2,391		$	4,703		$	75		$	453		$	528		$	7		$	240		$	8,397
Charge-offs		(217	)		(60	)		(40	)		(29	)		(18	)		(64	)		—			(428	)
Recoveries		45			82			—			9			5			15			—			156
Provisions (credits)		122			1,534			16			(16	)		(73	)		44			(237	)		1,390
Ending balance		2,341			6,259			51			417			442			2			3			9,515
Ending balance:    individually    evaluated for    impairment		—			166			—			—			—			—			—			166
Ending balance:    collectively    evaluated for    impairment	$	2,341		$	6,093		$	51		$	417		$	442		$	2		$	3		$	9,349
Loans receivable:
Ending balance	$	339,147		$	929,138		$	181,690		$	236,724		$	68,271		$	7,786		$	—		$	1,762,756
Ending balance:    individually    evaluated for    impairment		890			8,311			40			817			25			—			—			10,083
Ending balance:    acquired with    credit    deterioration		3			1,423			—			381			1			—			—			1,808
Ending balance:    collectively    evaluated for    impairment	$	338,254		$	919,404		$	181,650		$	235,526		$	68,245		$	7,786		$	—		$	1,750,865

Troubled Debt Restructurings

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

(Dollars in thousands)	Pre-Modification		Post-Modification
December 31, 2021	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	$	8	$	8	$	5
Commercial real estate		1,214		1,115		320
Commercial real estate - construction		40		40		22
Residential mortgage		647		645		472
	$	1,909	$	1,808	$	819

(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 Troubled Debt Restructurings Modified in the Period

The following table summarizes the loans whose terms have been modified resulting in troubled debt restructurings during the years ended December 31, 2020, and 2019.

(Dollars in thousands)		Pre-Modification		Post-Modification
December 31, 2020	Number of Contracts	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial real estate	1	$	593	$	593	$	535
Residential mortgage	2		51		51		47
	3	$	644	$	644	$	582

(Dollars in thousands)		Pre-Modification		Post-Modification
December 31, 2019	Number of Contracts	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	1	$	3	$	3	$	3
Commercial real estate - construction	1		40		40		40
	2	$	43	$	43	$	43

Schedule of Accretion of Purchased Impaired Loan

The following table provides activity for the accretable yield of purchased impaired loans for the years ended December 31, 2021 and 2020.

(Dollars in thousands)
	For the year ended December 31,
	2021			2020
Accretable yield, beginning of period	$	40		$	89
Acquisition of impaired loans		541			—
Accretable yield amortized to interest income		(1	)		(49	)
Accretable yield, end of period	$	580		$	40