Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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.

	June 30, 2023
(In thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale securities:
U.S. Treasury and U.S. government agencies	$	—	$	34,927	$	—	$	34,927
Mortgage-backed U.S. government agencies	—		158,700		—		158,700
State and political subdivision obligations	—		3,561		—		3,561
Corporate debt securities	—		31,586		—		31,586
Equity securities	433		—		—		433
Loans held for sale	—		7,258		—		7,258
Other assets:
Derivative assets	—		15,291		—		15,291
Total	$	433	$	251,323	$	—	$	251,756

	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)	June 30, 2023		December 31, 2022
Individually evaluated loans, net of ACL	$	14,875	$	4,022
Foreclosed assets held for sale	489		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:

	June 30, 2023
	Carrying Amount		Estimated Fair Value
(In thousands)			Level 1		Level 2		Level 3		Total
Financial instruments - assets
Cash and cash equivalents	$	93,875	$	93,875	$	—	$	—	$	93,875
Available-for-sale investment securities	228,774		—		228,774		—		228,774
Held-to-maturity investment securities	404,831		—		355,789		—		355,789
Equity securities	433		433		—		—		433
Loans held for sale	7,258		—		7,258		—		7,258
Net loans	4,001,922		—		—		3,982,704		3,982,704
Restricted investment in bank stocks	11,646		11,646		—		—		11,646
Accrued interest receivable	19,626		19,626		—		—		19,626
Derivative assets	15,291		—		15,291		—		15,291
Financial instruments - liabilities
Deposits	$	4,286,686	$	—	$	4,273,395	$	—	$	4,273,395
Short-term borrowings	112,442		—		112,442		—		112,442
Long-term debt (1)	55,738		—		54,014		—		54,014
Subordinated debt	46,648		—		46,152		—		46,152
Accrued interest payable	11,115		11,115		—		—		11,115
Derivative liabilities	11,719		—		11,719		—		11,719

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

	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.