Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Recurring Basis

The following tables illustrate the assets measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets.

	March 31, 2023
(In thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale securities:
U.S. Treasury and U.S. government agencies	$	—	$	35,250	$	—	$	35,250
Mortgage-backed U.S. government agencies	—		165,604		—		165,604
State and political subdivision obligations	—		3,697		—		3,697
Corporate debt securities	—		32,058		—		32,058
Equity securities	438		—		—		438
Loans held for sale	—		2,677		—		2,677
Other assets:
Derivative assets	—		10,496		—		10,496
Total	$	438	$	249,782	$	—	$	250,220

	December 31, 2022
(In thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale securities:
U.S. Treasury and U.S. government agencies	$	—	$	34,914	$	—	$	34,914
Mortgage-backed U.S. government agencies	—		166,915		—		166,915
State and political subdivision obligations	—		3,539		—		3,539
Corporate debt securities	—		32,510		—		32,510
Equity securities	430		—		—		430
Loans held for sale	—		2,475		—		2,475
Other assets:
Derivative assets	—		11,703		—		11,703
Total	$	430	$	252,056	$	—	$	252,486

Fair Value Measurements, Nonrecurring

The following table illustrates Level 3 financial instruments measured at fair value on a nonrecurring basis:

(In thousands)	March 31, 2023		December 31, 2022
Individually evaluated loans, net of ACL	$	13,084	$	938
Foreclosed assets held for sale	248		43

Fair Value, by Balance Sheet Grouping

The following tables summarize the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn's financial instruments as of the periods presented:

	March 31, 2023
	Carrying Amount		Estimated Fair Value
(In thousands)			Level 1		Level 2		Level 3		Total
Financial instruments - assets
Cash and cash equivalents	$	62,171	$	62,171	$	—	$	—	$	62,171
Available-for-sale investment securities	236,609		—		236,609		—		236,609
Held-to-maturity investment securities	396,784		—		352,454		—		352,454
Equity securities	438		438		—		—		438
Loans held for sale	2,677		—		2,677		—		2,677
Net loans	3,580,082		—		—		3,517,331		3,517,331
Restricted investment in bank stocks	8,041		8,041		—		—		8,041
Accrued interest receivable	19,205		19,205		—		—		19,205
Derivative assets	10,496		—		10,496		—		10,496
Financial instruments - liabilities
Deposits	$	3,878,081	$	—	$	3,867,729	$	—	$	3,867,729
Short-term debt	88,000		—		88,000		—		88,000
Long-term debt (1)	1,049		—		1,052		—		1,052
Subordinated debt	56,794		—		56,915		—		56,915
Accrued interest payable	5,809		5,809		—		—		5,809
Derivative liabilities	10,521		—		10,521		—		10,521

	December 31, 2022
			Estimated Fair Value
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial instruments - assets
Cash and cash equivalents	$	60,881	$	60,881	$	—	$	—	$	60,881
Available-for-sale investment securities	237,878		—		237,878		—		237,878
Held-to-maturity investment securities	399,494		—		348,505		—		348,505
Equity securities	430		430		—		—		430
Loans held for sale	2,475		—		2,475		—		2,475
Net loans	3,495,162		—		—		3,439,948		3,439,948
Restricted investment in bank stocks	8,315		8,315		—		—		8,315
Accrued interest receivable	18,405		18,405		—		—		18,405
Derivative assets	11,743		—		11,743		—		11,743
Financial instruments - liabilities
Deposits	$	3,778,331	$	—	$	3,761,260	$	—	$	3,761,260
Short-term debt	102,647		—		102,647		—		102,647
Long-term debt (1)	1,119		—		1,069		—		1,069
Subordinated debt	56,941		—		55,917		—		55,917
Accrued interest payable	2,303		2,303		—		—		2,303
Derivative liabilities	11,737		—		11,737		—		11,737

(1)Long-term debt excludes finance lease obligations.