Leases (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Operating and Finance Lease Right-of-Use Assets and Related Lease Liabilities

Below is a summary of the operating and finance lease right-of-use assets and related lease liabilities, as well as the weighted average lease term (in years) and weighted average discount rate for each of the lease classifications as of March 31, 2020 and December 31, 2019.

(Dollars in thousands)	March 31, 2020						December 31, 2019
	Operating Leases			Finance Lease			Operating Leases			Finance Lease
Right of use asset	$	10,999		$	3,402		$	11,442		$	3,447
Lease liability	$	12,070		$	3,530		$	12,544		$	3,551
Weighted average remaining lease term (in years)		8.58			18.92			8.64			19.17
Weighted average discount rate		3.33	%		3.81	%		3.33	%		3.81	%

Summary of Lease Costs

A summary of lease costs during the three months ended March 31, 2020 and 2019 are presented below. Interest expense on finance lease liabilities is included in other interest expense, while all other lease costs are included in occupancy expense on Mid Penn’s Consolidated Statements of Income.

(Dollars in thousands)	Three Months Ended
	March 31, 2020			March 31, 2019
Finance lease cost:
Amortization of right-of-use asset	$	45		$	15
Interest expense on lease liability		34			11
Total finance lease cost		79			26
Operating lease cost		528			515
Short-term and equipment lease cost		9			28
Variable lease cost		—			—
Sublease income		(6	)		(5	)
Total lease costs	$	610		$	564

Summary of Cash Paid for Amounts Included in Measurement of Lease Liabilities

A summary of cash paid for amounts included in the measurement of lease liabilities is presented below.

(Dollars in thousands)	Three Months Ended
	March 31, 2020		March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	34	$	11
Operating cash flows from operating leases		544		542
Financing cash flows from finance leases		21		15

Summary of Maturity Analysis of Operating and Finance Lease Liabilities and Reconciliation of Undiscounted Cash Flows

A maturity analysis of operating and finance lease liabilities and a reconciliation of the undiscounted cash flows to the total operating and finance lease liability amounts is presented below.

(Dollars in thousands)	March 31, 2020
	Operating Leases			Finance Lease
Lease payments due:
Within one year	$	1,561		$	163
After one but within two years		1,868			216
After two but within three years		1,824			217
After three but within four years		1,572			217
After four but within five years		1,512			252
After five years		5,585			3,992
Total undiscounted cash flows		13,922			5,057
Discount on cash flows		(1,852	)		(1,527	)
Total lease liability	$	12,070		$	3,530