Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

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 December 31, 2021 and December 31, 2020.

(Dollars in thousands)	December 31, 2021						December 31, 2020
	Operating Leases			Finance Lease			Operating Leases			Finance Lease
Right of use asset	$	9,055		$	3,087		$	10,157		$	3,267
Lease liability	$	11,363		$	3,380		$	11,200		$	3,467
Weighted average remaining lease term  (in years)		7.03			17.17			8.05			18.17
Weighted average discount rate		3.12	%		3.81	%		3.30	%		3.81	%

Summary of Lease Costs

A summary of lease costs during the years ended December 31, 2021 and December 31, 2020 is 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)	Year Ended
	December 31, 2021			December 31, 2020			December 31, 2019
Finance lease cost:
Amortization of right-of-use asset	$	180		$	180		$	150
Interest expense on lease liability		130			133			113
Total finance lease cost		310			313			263
Operating lease cost		2,002			2,061			2,077
Short-term and equipment lease costs		29			40			55
Variable lease cost		—			—			—
Sublease income		(27	)		(21	)		(24	)
Total lease costs	$	2,314		$	2,393		$	2,371

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)	Year Ended
	December 31, 2021		December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	130	$	133
Operating cash flows from operating leases		2,113		2,105
Financing cash flows from finance leases		87		83

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)	December 31, 2021
	Operating Leases			Finance Lease
Lease payments due:
Within one year	$	2,426		$	217
After one but within two years		2,042			217
After two but within three years		1,863			252
After three but within four years		1,476			259
After four but within five years		1,249			259
After five years		3,626			3,473
Total undiscounted cash flows		12,682			4,677
Discount on cash flows		(1,319	)		(1,297	)
Total lease liability	$	11,363		$	3,380

Schedule of Future Minimum Rental Payments of Operating and Finance Leases

The following summary reflects the future minimum rental payments by year under Mid Penn’s operating and finance leases as of December 31, 2021, including a breakdown of the sublease rental income and future minimum payments owed to related parties.

	As of December 31, 2021
(Dollars in thousands)	Lease Obligation		Sublease Rental Income		Net Rental Expense
2022	$	2,901	$	27	$	2,874
2023		2,446		—		2,446
2024		2,156		—		2,156
2025		1,739		—		1,739
2026		1,508		—		1,508
thereafter		7,099		—		7,099
	$	17,849	$	27	$	17,822

Schedule of Future Minimum Rental Payments of Operating Leases

The following summary reflects the future minimum rental payments by year under Mid Penn’s operating leases as of December 31, 2020, including a breakdown of the sublease rental income and future minimum payments owed to related parties.

	As of December 31, 2020
(Dollars in thousands)	Lease Obligation		Sublease Rental Income		Net Rental Expense
2021	$	2,445	$	21	$	2,424
2022		2,426		—		2,426
2023		2,179		—		2,179
2024		2,013		—		2,013
2025		1,632		—		1,632
thereafter		8,543		—		8,543
	$	19,238	$	21	$	19,217