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Loans and Allowance for Credit Losses - Loans (Tables)
 12 Months Ended
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Type of Loan Portfolio Summarized by the Aggregate Risk Rating
Loans, net of unearned income, are summarized as follows by portfolio segment:
(In thousands)December 31, 2023December 31, 2022
Commercial real estate (1)
CRE Nonowner Occupied$1,149,553 $1,184,306 
CRE Owner Occupied629,904 488,551 
Multifamily309,059 197,620 
Farmland212,690 182,457 
Total Commercial real estate2,301,206 2,052,934 
Commercial and industrial
675,079 596,042 
Construction
Residential Construction92,843 90 
Other Construction362,624 441,156 
Total Construction455,467 441,246 
Residential mortgage (1)
1-4 Family 1st Lien339,142 305,386 
1-4 Family Rental341,937 — 
HELOC and Junior Liens132,795 110,835 
Total Residential Mortgage813,874 416,221 
Consumer7,166 7,676 
Total loans$4,252,792 $3,514,119 
(1) In accordance with the guidance in FASB ASC Topic 326, Mid Penn redefined its loan portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. As such, $181.9 million of loans were reclassified from Commercial real estate to Residential mortgage upon adoption of CECL on January 1, 2023.
The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal.
December 31, 2023
Term Loans Amortized Cost Basis by Origination YearRevolving Loans Amortized
Cost Basis
(In thousands)20232022202120202019PriorTotal
Commercial real estate
Pass$271,655 $556,801 $386,911 $297,746 $178,434 $528,326 $38,261 $2,258,134 
Special mention194 — — — 6,009 10,482 186 16,871 
Substandard or lower— 5,209 208 3,162 229 17,345 48 26,201 
Total commercial real estate271,849 562,010 387,119 300,908 184,672 556,153 38,495 2,301,206 
Gross charge offs— — — — — (16)— (16)
Net charge offs— — — — — (16)— (16)
Commercial and industrial
Pass158,824 106,714 68,448 29,961 50,206 57,892 188,714 660,759 
Special mention— 89 2,224 — 227 2,200 4,391 9,131 
Substandard or lower— — 662 — — 1,978 2,549 5,189 
Total commercial and industrial158,824 106,803 71,334 29,961 50,433 62,070 195,654 675,079 
Gross charge offs— (100)— (111)— (27)— (238)
Net charge offs— (100)— (111)— (27)— (238)
Construction
Pass153,596 181,214 54,658 22,357 10,247 5,856 23,262 451,190 
Special mention— — — 1,447 — — — 1,447 
Substandard or lower— 573 — — — 2,257 — 2,830 
Total construction153,596 181,787 54,658 23,804 10,247 8,113 23,262 455,467 
Residential mortgage
Performing158,634 153,203 111,610 90,382 27,863 178,898 87,723 808,313 
Non-performing— — 93 1,470 — 3,998 — 5,561 
Total residential mortgage158,634 153,203 111,703 91,852 27,863 182,896 87,723 813,874 
Gross charge offs— — — — — (13)— (13)
Current period recoveries— — — — — 38 — 38 
Net recoveries— — — — — 25 — 25 
Consumer
Performing2,361 754 649 273 223 103 2,803 7,166 
Non-performing— — — — — — — — 
Total consumer2,361 754 649 273 223 103 2,803 7,166 
Gross charge offs(86)— (10)(9)— (30)— (135)
Current period recoveries26 — — 1 — 5 — 32 
Net charge offs(60)— (10)(8)— (25)— (103)
Total
Pass584,075 844,729 510,017 350,064 238,887 592,074 250,237 3,370,083 
Special mention194 89 2,224 1,447 6,236 12,682 4,577 27,449 
Substandard or lower— 5,782 870 3,162 229 21,580 2,597 34,220 
Performing160,995 153,957 112,259 90,655 28,086 179,001 90,526 815,479 
Nonperforming— — 93 1,470 — 3,998 — 5,561 
Total$745,264 $1,004,557 $625,463 $446,798 $273,438 $809,335 $347,937 $4,252,792 
(In thousands)PassSpecial
Mention		SubstandardTotal
December 31, 2022
Commercial real estate$2,018,088 $12,325 $22,521 $2,052,934 
Commercial and industrial582,540 4,212 9,290 596,042 
Construction438,990 2,256 — 441,246 
Residential mortgage409,259 3,104 3,858 416,221 
Consumer7,676 — — 7,676 
Total loans$3,456,553 $21,897 $35,669 $3,514,119 
The information presented in the designated internal risk categories by portfolio segment table presented above is not required for periods prior to the adoption of CECL. The following table presents the most comparable required information for the prior period, internal credit risk ratings, for the indicated loan portfolio segments as of December 31, 2022:
(In thousands)PassSpecial
Mention		SubstandardTotal
December 31, 2022
Commercial real estate$2,018,088 $12,325 $22,521 $2,052,934 
Commercial and industrial582,540 4,212 9,290 596,042 
Construction438,990 2,256 — 441,246 
Residential mortgage409,259 3,104 3,858 416,221 
Consumer7,676 — — 7,676 
Total loans$3,456,553 $21,897 $35,669 $3,514,119 
Loan Portfolio Summarized by the Past Due Status
The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of December 31, 2023 and December 31, 2022, are summarized as follows:
(In thousands)30-59
Days Past
Due		60-89
Days Past
Due		Greater
than 90
Days		Total Past
Due		CurrentTotal LoansLoans
Receivable
> 90 Days and
Accruing
December 31, 2023
Commercial real estate$5,073 $682 $2,974 $8,729 $2,292,477 $2,301,206 $— 
Commercial and industrial638 24 1,270 1,932 673,147 675,079 — 
Construction— 270 2,559 2,829 452,638 455,467 — 
Residential mortgage4,648 267 2,518 7,433 806,441 813,874 — 
Consumer41 31 — 72 7,094 7,166 — 
Total$10,400 $1,274 $9,321 $20,995 $4,231,797 $4,252,792 $— 
(In thousands)30-59
Days Past
Due		60-89
Days Past
Due		Greater
than 90
Days		Total Past
Due		CurrentTotal LoansLoans
Receivable
> 90 Days and
Accruing
December 31, 2022
Commercial real estate$1,792 $— $1,438 $3,230 $2,047,167 $2,050,397 $— 
Commercial and industrial1,808 3 1,854 3,665 592,377 596,042 654 
Construction2,258 — — 2,258 438,988 441,246 — 
Residential mortgage3,826 955 670 5,451 409,630 415,081 — 
Consumer44 19 — 63 7,613 7,676 — 
Loans acquired with credit deterioration:
Commercial real estate78 — 826 904 1,633 2,537 — 
Commercial and industrial— — — — — — — 
Construction— — — — — — — 
Residential mortgage223 228 241 692 448 1,140 — 
Consumer— — — — — — — 
Total$10,029 $1,205 $5,029 $16,263 $3,497,856 $3,514,119 $654 
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, 2023 and 2022 are summarized as follows:
December 31, 2023December 31, 2022
Non-accrual LoansTotal non-accrual Loans
(In thousands)With a Related AllowanceWithout a Related AllowanceTotal
Commercial real estate$454 $6,133 $6,587 $4,864 
Commercial and industrial1,222 64 1,286 1,222 
Construction— 2,559 2,559 — 
Residential mortgage2 3,782 3,784 2,109 
Consumer— — — 
$1,678 $12,538 $14,216 $8,195 
Allowance for Loan Losses and Recorded Investment in Financing Receivables
The following table presents the activity in the ACL - loans as calculated under the CECL methodology by portfolio segment for the twelve months ended December 31, 2023:
(In thousands)Balance at
December 31, 2022		CECL ImpactPCD LoansCharge offsRecoveriesNet loans (charged off) recovered
Provision for credit losses (1)
Balance at
December 31, 2023
Commercial Real Estate
CRE Nonowner Occupied$8,284 $259 $312 $— $— $— $1,412 $10,267 
CRE Owner Occupied2,916 91 2 (16)— (16)2,653 5,646 
Multifamily1,111 35 — — — — 1,056 2,202 
Farmland831 26 — — — — 1,207 2,064 
Commercial and industrial4,593 6,601 5 (238)— (238)(3,830)7,131 
Construction
Residential Construction— 1,270 12 — — — (26)1,256 
Other Construction— 1,931 1 — — — 214 2,146 
Residential Mortgage
1-4 Family 1st Lien370 1,307 4 (13)7 (6)(468)1,207 
1-4 Family Rental288 731 — — 31 31 809 1,859 
HELOC and Junior Liens661 (230)— — — — (42)389 
Consumer29 154 — (135)32 (103)(60)20 
Unallocated(126)(244)— — — — 370 — 
Total$18,957 $11,931 $336 $(402)$70 $(332)$3,295 $34,187 
(1) Includes a $2.0 million initial provision for credit losses on non-PCD loans acquired in the Brunswick Acquisition
The following table presents the ACL for loans and the amortized cost basis of the loans by the measurement methodology used as of December 31, 2023:
(In thousands)ACL - LoansLoans
December 31, 2023Collectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotal ACL - LoansCollectively Evaluated for Credit LossIndividually Evaluated for Credit LossTotal Loans
Commercial real estate
CRE Nonowner Occupied$9,906 $361 $10,267 $1,145,048 $4,505 $1,149,553 
CRE Owner Occupied5,646 5,646 627,995 1,909 629,904 
Multifamily2,190 12 2,202 308,886 173 309,059 
Farmland2,064 2,064 212,690 212,690 
Commercial and industrial6,419 712 7,131 673,793 1,286 675,079 
Construction
Residential Construction1,256 1,256 92,270 573 92,843 
Other Construction2,146 2,146 360,368 2,256 362,624 
Residential mortgage
1-4 Family 1st Lien1,207 1,207 337,267 1,875 339,142 
1-4 Family Rental1,857 2 1,859 341,236 701 341,937 
HELOC and Junior Liens389 389 131,587 1,208 132,795 
Consumer20 — 20 7,166 — 7,166 
Total$33,100 $1,087 $34,187 $4,238,306 $14,486 $4,252,792 
The following table summarizes the allowance as calculated under the incurred loss methodology and recorded investments in loans receivable:
(In thousands)Commercial
Real Estate		Commercial
and
Industrial		ConstructionResidential
Mortgage		ConsumerUnallocatedTotal
Balance at December 31, 20208,655 3,066 134 936 1 590 13,382 
Loans charged off(1,044)(866)(23)(13)(42)— (1,988)
Recoveries207 13 8 11 19 — 258 
Provisions (credits)1,597 1,226 (81)85 24 94 2,945 
Balance at December 31, 20219,415 3,439 38 1,019 2 684 14,597 
Loans charged off(7)(1)— (26)(97)— (131)
Recoveries128 13 24 4 22 — 191 
Provisions (credits)3,606 1,142 (62)322 102 (810)4,300 
Balance at December 31, 2022$13,142 $4,593 $— $1,319 $29 $(126)$18,957 
Allowance for Loan Losses at December 31, 2022
Collectively evaluated for impairment$13,078 $3,792 $— $1,297 $29 $(126)$18,070 
Individually evaluated for impairment$64 $801 $— $22 $— $— $887 
$13,142 $4,593 $— $1,319 $29 $(126)$18,957 
Loans, Net of Unearned Interest
Collectively evaluated for impairment$2,048,074 $594,820 $441,246 $413,717 $7,676 $— $3,505,533 
Individually evaluated for impairment2,323 1,222 — 1,364 — — 4,909 
Acquired with credit deterioration2,537 — — 1,140 — — 3,677 
$2,052,934 $596,042 $441,246 $416,221 $7,676 $— $3,514,119 
Troubled Debt Restructurings
Information related to loans modified (by type of modification), whereby the borrower was experiencing financial difficulty at the time of modification as of December 31, 2023, is set forth in the following table:

(In thousands)Interest Only
Term Extension		Combination:
Interest Only and
Term Extension		Total% of Total Class of Financing Receivable
Three months ended December 31, 2023
Commercial real estate$— $— $— $— — %
Commercial and industrial
— — — — — 
Construction— 700 — 700 0.15 
  Total$— $700 $— $700 0.02 %
Year ended December 31, 2023
Commercial real estate$51 $— $180 $231 0.01 %
Commercial and industrial
— 150 — 150 0.02 
Construction— 700 — 700 0.15 
Total$51 $850 $180 $1,081 0.16 %
As of December 31, 2022, there were no defaulted troubled debt restructured loans, as all troubled debt restructured loans were current with respect to their associated forbearance agreements. There were also no defaults on troubled debt restructured loans within twelve months of restructure during 2022.
(In thousands)Pre-Modification
Outstanding Recorded Investment		Post-Modification
Outstanding Recorded Investment		Recorded Investment
December 31, 2022
Commercial real estate$851 $815 $109 
Residential mortgage590 590 415 
$1,441 $1,405 $524