Fair Value Measurements (Tables)

9 Months Ended

Sep. 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.

	September 30, 2023
(In thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale securities:
U.S. Treasury and U.S. government agencies	$	—	$	34,731	$	—	$	34,731
Mortgage-backed U.S. government agencies	—		148,644		—		148,644
State and political subdivision obligations	—		3,312		—		3,312
Corporate debt securities	—		31,377		—		31,377
Equity securities	413		—		—		413
Loans held for sale	—		4,270		—		4,270
Other assets:
Derivative assets	—		18,608		—		18,608
Total	$	413	$	240,942	$	—	$	241,355

	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)	September 30, 2023		December 31, 2022
Individually evaluated loans, net of ACL	$	12,371	$	4,022
Foreclosed assets held for sale	905		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:

	September 30, 2023
	Carrying Amount		Estimated Fair Value
(In thousands)			Level 1		Level 2		Level 3		Total
Financial instruments - assets
Cash and cash equivalents	$	118,099	$	118,099	$	—	$	—	$	118,099
Available-for-sale investment securities	218,064		—		218,064		—		218,064
Held-to-maturity investment securities	401,561		—		341,006		—		341,006
Equity securities	413		413		—		—		413
Loans held for sale	4,270		—		4,270		—		4,270
Net loans	4,111,653		—		—		3,930,893		3,930,893
Restricted investment in bank stocks	13,554		13,554		—		—		13,554
Accrued interest receivable	24,230		24,230		—		—		24,230
Derivative assets	18,608		—		18,608		—		18,608
Financial instruments - liabilities
Deposits	$	4,381,616	$	—	$	3,902,627	$	—	$	3,902,627
Short-term borrowings	139,000		—		139,000		—		139,000
Long-term debt (1)	55,771		—		54,047		—		54,047
Subordinated debt	46,501		—		38,669		—		38,669
Accrued interest payable	14,657		14,657		—		—		14,657
Derivative liabilities	14,080		—		14,080		—		14,080

(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	11,703		—		11,703		—		11,703
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.