Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 01, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-13677 | ||
Entity Registrant Name | MID PENN BANCORP, INC. | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 25-1666413 | ||
Entity Address, Address Line One | 2407 Park Drive | ||
Entity Address, City or Town | Harrisburg | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 17110 | ||
City Area Code | 1.866 | ||
Local Phone Number | 642.7736 | ||
Title of 12(b) Security | Common Stock, $1.00 par value per share | ||
Trading Symbol | MPB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 382,500 | ||
Entity Common Stock, Shares Outstanding | 15,886,143 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement of the Registrant for the 2023 Annual Meeting of Shareholders are incorporated by reference in Part III. | ||
Entity Central Index Key | 0000879635 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Location | Philadelphia, PA USA |
Auditor Firm ID | 49 |
Auditor Name | RSM US LLP |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 53,368 | $ 41,100 |
Interest-bearing balances with other financial institutions | 4,405 | 146,031 |
Federal funds sold | 3,108 | 726,621 |
Total cash and cash equivalents | 60,881 | 913,752 |
Investment securities: | ||
Held to maturity, at amortized cost | 399,494 | 329,257 |
Available for sale, at fair value | 237,878 | 62,862 |
Equity securities available for sale, at fair value | 430 | 500 |
Loans held for sale, at fair value | 2,475 | 11,514 |
Loans, net of unearned interest | 3,514,119 | 3,104,396 |
Less: Allowance for loan losses | (18,957) | (14,597) |
Net loans | 3,495,162 | 3,089,799 |
Premises and equipment, net | 34,471 | 33,232 |
Bank premises and equipment held for sale | 1,306 | 3,907 |
Operating lease right of use asset | 8,798 | 9,055 |
Finance lease right of use asset | 2,907 | 3,087 |
Cash surrender value of life insurance | 50,674 | 49,661 |
Restricted investment in bank stocks | 8,315 | 9,134 |
Accrued interest receivable | 18,405 | 11,328 |
Deferred income taxes | 13,674 | 10,779 |
Goodwill | 114,231 | 113,835 |
Core deposit and other intangibles, net | 7,260 | 9,436 |
Foreclosed assets held for sale | 43 | 0 |
Other assets | 41,550 | 28,287 |
Total Assets | 4,497,954 | 4,689,425 |
Deposits: | ||
Noninterest-bearing demand | 793,939 | 850,438 |
Interest-bearing demand deposits | 2,325,847 | 2,524,921 |
Time | 658,545 | 626,657 |
Total Deposits | 3,778,331 | 4,002,016 |
Short-term borrowings | 102,647 | 0 |
Long-term debt | 4,409 | 81,270 |
Subordinated debt and trust preferred securities | 56,941 | 74,274 |
Operating lease liability | 9,725 | 11,363 |
Accrued interest payable | 2,303 | 1,791 |
Other liabilities | 31,499 | 28,635 |
Total Liabilities | 3,985,855 | 4,199,349 |
Shareholders' Equity: | ||
Common stock, par value $1.00; 20,000,000 shares authorized; 16,094,486 issued at December 31, 2022 and 16,056,282 at December 31, 2021; 15,886,143 outstanding at December 31, 2022 and 15,957,830 at December 31, 2021 | 16,094 | 16,056 |
Additional paid-in capital | 386,987 | 384,742 |
Retained earnings | 133,114 | 91,043 |
Accumulated other comprehensive (loss) income | (19,216) | 158 |
Treasury Stock, at cost; 208,343 and 98,452 shares at December 31, 2022 and December 31, 2021 | (4,880) | (1,923) |
Total Shareholders’ Equity | 512,099 | 490,076 |
Total Liabilities and Shareholders' Equity | $ 4,497,954 | $ 4,689,425 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Held-to-maturity, fair value | $ 348,505 | $ 330,626 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 16,094,486 | 16,056,282 |
Common stock, outstanding (in shares) | 15,886,143 | 15,957,830 |
Treasury stock (in shares) | 208,343 | 98,452 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTEREST INCOME | |||
Loans, including fees | $ 150,256 | $ 118,776 | $ 103,507 |
Investment securities: | |||
Taxable | 11,952 | 2,602 | 2,884 |
Tax-exempt | 1,497 | 1,122 | 1,008 |
Other interest-bearing balances | 69 | 13 | 39 |
Federal funds sold | 1,826 | 809 | 497 |
Total Interest Income | 165,600 | 123,322 | 107,935 |
INTEREST EXPENSE | |||
Deposits | 14,144 | 11,327 | 16,399 |
Short-term borrowings | 441 | 539 | 371 |
Long-term and subordinated debt | 3,182 | 2,888 | 2,957 |
Total Interest Expense | 17,767 | 14,754 | 19,727 |
Net Interest Income | 147,833 | 108,568 | 88,208 |
PROVISION FOR LOAN LOSSES | 4,300 | 2,945 | 4,200 |
Net Interest Income After Provision for Loan Losses | 143,533 | 105,623 | 84,008 |
NONINTEREST INCOME | |||
Net gain on sales of SBA loans | 262 | 969 | 442 |
Earnings from cash surrender value of life insurance | 1,013 | 358 | 301 |
Net gain on sales of investment activities | 0 | 79 | 467 |
Other | 7,793 | 3,576 | 2,558 |
Noninterest Income | 23,657 | 21,533 | 17,908 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 52,601 | 41,711 | 37,758 |
Software licensing and utilization | 7,524 | 6,332 | 5,286 |
Occupancy, net | 6,900 | 5,527 | 5,505 |
Equipment | 4,493 | 3,101 | 2,910 |
Shares tax | 2,786 | 800 | 583 |
Legal and professional fees | 2,761 | 1,979 | 1,665 |
ATM/card processing | 2,139 | 1,053 | 819 |
Intangible amortization | 2,012 | 1,180 | 1,398 |
FDIC Assessment | 1,594 | 1,888 | 1,680 |
Charitable contributions qualifying for State tax credits | 1,033 | 1,432 | 1,342 |
Mortgage banking profit-sharing | 178 | 2,571 | 2,004 |
(Gain) loss on sale or write-down of foreclosed assets, net | (133) | (25) | 333 |
Merger and acquisition | 294 | 3,067 | 0 |
Post-acquisition restructuring | 329 | 9,880 | 0 |
Other | 15,332 | 10,609 | 9,294 |
Total Noninterest Expense | 99,843 | 91,105 | 70,577 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 67,347 | 36,051 | 31,339 |
Provision for income taxes | 12,541 | 6,732 | 5,130 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 54,806 | $ 29,319 | $ 26,209 |
PER COMMON SHARE DATA: | |||
Basic Earnings Per Common Share (in dollars per share) | $ 3.44 | $ 2.71 | $ 3.11 |
Diluted earnings per common share (in dollars per share) | $ 3.44 | $ 2.71 | $ 3.10 |
Weighted average shares outstanding (basic) (in shares) | 15,912,877 | 10,806,009 | 8,439,427 |
Weighted average shares outstanding (diluted) (in shares) | 15,934,635 | 10,819,579 | 8,443,092 |
Fiduciary and wealth management | |||
NONINTEREST INCOME | |||
Non-interest Income | $ 5,071 | $ 2,494 | $ 1,694 |
ATM debit card interchange | |||
NONINTEREST INCOME | |||
Non-interest Income | 4,362 | 2,688 | 1,960 |
Service charges on deposits | |||
NONINTEREST INCOME | |||
Non-interest Income | 2,078 | 991 | 637 |
Mortgage banking | |||
NONINTEREST INCOME | |||
Non-interest Income | 1,607 | 10,314 | 9,682 |
Mortgage hedging | |||
NONINTEREST INCOME | |||
Non-interest Income | $ 1,471 | $ 64 | $ 167 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 54,806 | $ 29,319 | $ 26,209 | |
Other comprehensive (loss) income: | ||||
Unrealized (losses) gains arising during the period on available for sale securities, net of income taxes | [1] | (19,072) | (190) | 494 |
Reclassification adjustment for net gain on sales of available-for-sale securities included in net income, net of income taxes impact, respectively | [1],[2] | 0 | (62) | (369) |
Change in defined benefit plans, net of income taxes impact, respectively | [1],[3] | (294) | 511 | (503) |
Reclassification adjustment for settlement gains and activity related to benefit plans, net of income taxes impact, respectively | [1],[4] | (8) | (44) | (22) |
Total other comprehensive (loss) income | (19,374) | 215 | (400) | |
Total comprehensive income | $ 35,432 | $ 29,534 | $ 25,809 | |
[1]The income tax impacts of the components of other comprehensive income are calculated using the 21% statutory tax rate for 2022, 2021 and 2020.[2]Amounts are included in net gain on sales of investment securities on the Consolidated Statements of Income as a separate component within total noninterest income.[3]The change in defined benefit plans consists primarily of unrecognized actuarial (losses) gains on defined benefit plans during the period.[4] The reclassification adjustment for defined benefit plans includes settlement gains, amortization of prior service costs, and amortization of net gain or loss. Amounts are included in other income on the Consolidated Statements of Income within the total noninterest income. See "Note 14 - Postretirement Benefit Plans " , to the Consolidated Financial Statements for more information. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains (losses) arising during the period on available for sale securities, tax | $ 5,070 | $ 50 | $ (131) |
Reclassification adjustment for net gain on sales of available-for-sale securities included in net income, net of income tax benefit | 0 | 17 | 98 |
Change in defined benefit plans, tax | 78 | (136) | 134 |
Reclassification adjustment for settlement gains and activity related to benefit plans, tax | $ 2 | $ 12 | $ 6 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | |
Beginning balance (in shares) at Dec. 31, 2019 | 8,480,938 | ||||||
Beginning balance at Dec. 31, 2019 | $ 237,874 | $ 8,481 | $ 178,159 | $ 50,891 | $ 343 | $ 0 | |
Net income | 26,209 | 26,209 | |||||
Total other comprehensive loss, net of taxes | (400) | (400) | |||||
Common stock dividends declared | (6,925) | (6,925) | |||||
Repurchased stock | (1,795) | (1,795) | |||||
Employee Stock Purchase Plan (in shares) | 8,005 | ||||||
Employee Stock Purchase Plan | 155 | $ 8 | 147 | ||||
Director Stock Purchase Plan (in shares) | 8,121 | ||||||
Director Stock Purchase Plan | 156 | $ 8 | 148 | ||||
Restricted stock activity (in shares) | 14,771 | ||||||
Restricted stock activity | 414 | $ 15 | 399 | ||||
Ending balance (in shares) at Dec. 31, 2020 | 8,511,835 | ||||||
Ending balance at Dec. 31, 2020 | 255,688 | $ 8,512 | 178,853 | 70,175 | (57) | (1,795) | |
Net income | 29,319 | 29,319 | |||||
Total other comprehensive loss, net of taxes | 215 | 215 | |||||
Common stock dividends declared | (8,451) | (8,451) | |||||
Common shares issued through follow-on public offering, net of underwriting discounts and offering expenses (in shares) | [1] | 2,990,000 | |||||
Common shares issued through follow-on public offering, net of underwriting discounts and offering expenses | [1] | 70,238 | $ 2,990 | 67,248 | |||
Common stock issued to Riverview shareholders (in shares) | [2] | 4,519,776 | |||||
Common stock issued to Riverview shareholders | [2] | 142,192 | $ 4,520 | 137,672 | |||
Repurchased stock | (128) | (128) | |||||
Employee Stock Purchase Plan (in shares) | 6,066 | ||||||
Employee Stock Purchase Plan | 172 | $ 6 | 166 | ||||
Director Stock Purchase Plan (in shares) | 4,771 | ||||||
Director Stock Purchase Plan | 135 | $ 5 | 130 | ||||
Restricted stock activity (in shares) | 23,834 | ||||||
Restricted stock activity | 696 | $ 23 | 673 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 16,056,282 | ||||||
Ending balance at Dec. 31, 2021 | 490,076 | $ 16,056 | 384,742 | 91,043 | 158 | (1,923) | |
Net income | 54,806 | 54,806 | |||||
Total other comprehensive loss, net of taxes | (19,374) | (19,374) | |||||
Common stock dividends declared | (12,735) | (12,735) | |||||
Common stock issued to Riverview shareholders | [3] | 776 | 776 | ||||
Repurchased stock | (2,957) | (2,957) | |||||
Employee Stock Purchase Plan (in shares) | 7,152 | ||||||
Employee Stock Purchase Plan | 200 | $ 7 | 193 | ||||
Director Stock Purchase Plan (in shares) | 5,876 | ||||||
Director Stock Purchase Plan | 165 | $ 6 | 159 | ||||
Restricted stock activity (in shares) | 25,176 | ||||||
Restricted stock activity | 1,142 | $ 25 | 1,117 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 16,094,486 | ||||||
Ending balance at Dec. 31, 2022 | $ 512,099 | $ 16,094 | $ 386,987 | $ 133,114 | $ (19,216) | $ (4,880) | |
[1]Shares issued in offering were net of expenses of $4.6 million.[2]Shares issued on November 30, 2021 as a result of the acquisition of Riverview Financial Corporation ("Riverview"). See "Note 2 - Business Combinations", to the Consolidated Financial Statements for more information.[3]Additionally, 2,500 shares of restricted stock were paid out in cash resulting in $776 thousand of cash consideration relating to stock awards. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Statement of Stockholders' Equity [Abstract] | |||||
Common stock cash dividends declared (in dollars per share) | $ 0.80 | $ 0.79 | $ 0.82 | ||
Repurchased stock (in shares) | 109,891 | 5,800 | 92,652 | ||
Adjustments to additional paid in capital, issuance costs | $ 4,600 | ||||
Restricted stock shares paid out in cash (in shares) | 2,500 | ||||
Common stock issued to Riverview shareholders | $ 776 | [1] | $ 142,192 | [2] | |
[1]Additionally, 2,500 shares of restricted stock were paid out in cash resulting in $776 thousand of cash consideration relating to stock awards.[2]Shares issued on November 30, 2021 as a result of the acquisition of Riverview Financial Corporation ("Riverview"). See "Note 2 - Business Combinations", to the Consolidated Financial Statements for more information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating Activities: | ||||
Net Income | $ 54,806 | $ 29,319 | $ 26,209 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for loan losses | 4,300 | 2,945 | 4,200 | |
Depreciation | 4,283 | 3,316 | 3,204 | |
Amortization of intangibles | 2,012 | 1,180 | 1,398 | |
Net amortization of security discounts/premiums | 729 | 636 | 782 | |
Noncash operating lease expense | 1,755 | 1,698 | 1,670 | |
Operating right of use asset abandonment | 0 | 1,348 | 0 | |
Amortization of finance lease right of use asset | 180 | 180 | 180 | |
Loss (gain) on sales of investment securities | 0 | (79) | (467) | |
Earnings on cash surrender value of life insurance | (1,013) | (358) | (301) | |
Mortgage loans originated for sale | (138,611) | (316,849) | (356,158) | |
Proceeds from sales of mortgage loans originated for sale | 149,257 | 341,155 | 348,756 | |
Gain on sale of mortgage loans | (1,607) | (10,314) | (9,682) | |
SBA loans originated for sale | (5,310) | (10,890) | (6,487) | |
Proceeds from sales of SBA loans originated for sale | 5,571 | 11,859 | 6,929 | |
Gain on sale of SBA loans | (262) | (969) | (442) | |
(Gain) loss on disposal or write-down of property, plant, and equipment | (254) | (105) | 242 | |
(Gain) loss on sale or write-down of foreclosed assets, net | (133) | (25) | 333 | |
Gain on sale of bank premises and equipment held for sale | (797) | 0 | 0 | |
Write-off of bank premises and equipment held for sale | 705 | 0 | 0 | |
Accretion of subordinated debt | (555) | 0 | 0 | |
Stock compensation expense | 1,142 | 696 | 414 | |
Deferred income tax benefit | 2,262 | 484 | (1,367) | |
Fair value adjustment on equity investments | 70 | 0 | 0 | |
Loss on sale of premises and equipment held for sale | 1,989 | 0 | 0 | |
(Increase) decrease accrued interest receivable | (7,080) | 3,562 | (5,007) | |
Increase in other assets | (13,261) | (4,321) | (1,971) | |
Increase (decrease) in accrued interest payable | 510 | (655) | (201) | |
Decrease in operating lease liability | (3,136) | (1,781) | (1,714) | |
Increase in other liabilities | 2,439 | 13,867 | 3,549 | |
Net Cash Provided By Operating Activities | 59,991 | 65,899 | 14,069 | |
Investing Activities: | ||||
Proceeds from the sale of available-for-sale securities | 0 | 5,178 | 101,739 | |
Proceeds from the maturity or call of available-for-sale securities | 14,574 | 2,856 | 8,538 | |
Purchases of available-for-sale securities | (213,976) | (65,192) | (78,542) | |
Proceeds from the maturity or call of held-to-maturity securities | 14,942 | 42,416 | 107,583 | |
Purchases of held-to-maturity securities | (85,664) | (243,987) | (100,029) | |
Stock dividends of FHLB and other bank stock | 289 | 345 | 360 | |
Reduction (purchases) of restricted investment in bank stock | 530 | 324 | (3,052) | |
Net cash (paid) received from acquisition | (901) | 315,287 | 0 | |
Net (increase) decrease in loans | (411,800) | 115,367 | (623,153) | |
Purchases of bank premises and equipment | (4,249) | (3,497) | (3,685) | |
Proceeds from the sale of premises and equipment | 220 | 62 | 65 | |
Proceeds from the sale of foreclosed assets | 242 | 212 | 1,264 | |
Net cash paid on branch sale | (18,918) | 0 | 0 | |
Net Cash (Used In) Provided by Investing Activities | (704,711) | 169,371 | (588,912) | |
Financing Activities: | ||||
Net (decrease) increase in deposits | (202,607) | 446,045 | 562,186 | |
Proceeds from long-term debt | 0 | 0 | 70,000 | |
Common stock dividends paid | (12,735) | (8,872) | (6,504) | |
Proceeds from Employee and Director Stock Purchase Plan stock issuance | 364 | 307 | 311 | |
Proceeds from issuance of common stock | [1] | 0 | 70,238 | 0 |
Treasury stock purchased | (2,957) | (128) | (1,795) | |
Riverview restricted stock (2) | [2] | 776 | 0 | 0 |
Net change in finance lease liability | (90) | (87) | (83) | |
Net change in short-term borrowings | 102,647 | (125,617) | 125,617 | |
Long-term debt repayment | (76,771) | (258) | (27,705) | |
Subordinated debt redemption and trust preferred securities | (16,778) | (6,870) | (9,640) | |
Subordinated debt issuance | 0 | 0 | 27,150 | |
Net Cash (Used In) Provided By Financing Activities | (208,151) | 374,758 | 739,537 | |
Net (decrease) increase in cash and cash equivalents | (852,871) | 610,028 | 164,694 | |
Cash and cash equivalents, beginning of period | 913,752 | 303,724 | 139,030 | |
Cash and cash equivalents, end of period | 60,881 | 913,752 | 303,724 | |
Supplemental Disclosures of Cash Flow Information: | ||||
Cash paid for interest | 17,255 | 14,970 | 19,928 | |
Cash paid for income taxes | 7,552 | 6,950 | 7,740 | |
Supplemental Noncash Disclosures: | ||||
Recognition of operating lease right of use assets | 0 | 1,944 | 385 | |
Recognition of operating lease liabilities | 1,498 | 1,944 | 370 | |
Obsolete Riverview asset write-off | 705 | 0 | 0 | |
Loans transferred to foreclosed assets held for sale | 152 | 53 | 1,535 | |
Common Stock issued to Riverview shareholders | 0 | 4,520 | 0 | |
Dividends declared and not paid before year-end | 0 | 0 | 421 | |
Carrying value of assets sold in branch sale | 2,159 | 0 | 0 | |
Liabilities assigned in branch sale | 21,076 | 0 | 0 | |
Fair value of assets acquired in business combination, excluding cash | [3] | 0 | 905,847 | 0 |
Goodwill recorded | 0 | 50,995 | 0 | |
Goodwill measurement period adjustment | 36 | 0 | 0 | |
Liabilities assumed in business combination | $ 0 | $ 1,129,937 | $ 0 | |
[1]Shares issued in offering were net of expenses of $4.6 million.[2]Additionally, 2,500 shares of restricted stock were paid out in cash resulting in $776 thousand of cash consideration relating to stock awards.[3] This disclosure includes the impact of the acquisition of Riverview Financial Corporation on November 30, 2021. See "Note 2 - Business Combinations" to the Consolidated Financial Statements for more information. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) shares | ||
Statement of Cash Flows [Abstract] | ||
Payment of financing and stock issuance costs | $ 4,600 | |
Restricted stock shares paid out in cash (in shares) | shares | 2,500 | |
Common stock issued to Riverview shareholders | $ 776 | [1] |
[1]Additionally, 2,500 shares of restricted stock were paid out in cash resulting in $776 thousand of cash consideration relating to stock awards. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Mid Penn Bancorp, Inc. ("Mid Penn" or the "Corporation"), through operations conducted by Mid Penn Bank (the "Bank") and its nonbank subsidiaries, engages in a full-service commercial banking and trust business, making available to the community a wide range of financial services, including, but not limited to, mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities and local government loans, and various types of time and demand deposits including but not limited to, checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and IRAs. In addition, the Bank provides a full range of trust and wealth management services through its Trust Department. Deposits are insured by the Federal Deposit Insurance Corporation ("FDIC") to the extent provided by law. Mid Penn also provides wealth management services, through its nonbank subsidiary MPB Wealth Management, LLC, and fulfills the insurance needs of both existing and potential customers through MPB Risk Services, LLC, doing business as MPB Insurance and Risk Management. The financial services are provided to individuals, partnerships, non-profit organizations, and corporations through its retail banking offices located in throughout Pennsylvania. Basis of Presentation For all periods presented, the accompanying Consolidated Financial Statements include the accounts of Mid Penn Bancorp, Inc., its wholly-owned subsidiary, Mid Penn Bank, and four nonbank subsidiaries, MPB Financial Services, LLC, which includes MPB Wealth Management, LLC and MPB Risk Services, LLC, and MPB Launchpad Fund I, LLC. As of December 31, 2022, the accounts and activities of these nonbank subsidiaries were not material to warrant separate disclosure or segment reporting. As a result, Mid Penn has only one reportable segment for financial reporting purposes. All material intercompany accounts and transactions have been eliminated in consolidation. On November 30, 2021, Mid Penn completed its acquisition of Riverview Financial Corporation ("Riverview"), pursuant to the previously announced Agreement and Plan of Merger dated as of June 30, 2021. On November 30, 2021, Riverview was merged with and into Mid Penn, with Mid Penn being the surviving corporation ("Riverview Acquisition"). See "Note 2 - Business Combinations" , as well as the Corporation’s Current Report on Form 8-K filed on December 1, 2021, for more information. The comparability of Mid Penn’s results of operations for the year ended December 31, 2022, compared to the years ended December 31, 2021 and 2020, in general, has been materially impacted by this acquisition, as further described in "Note 2 - Business Combinations", as well as events and legislation related to the Novel Coronavirus pandemic ("COVID-19") in 2021 and 2020. Certain amounts have been reclassified in the 2021 and 2020 Consolidated Financial Statements to conform to the 2022 presentation. Such reclassifications had no impact on net income or total shareholders’ equity. In the opinion of management, all adjustments necessary for fair presentation of the periods presented have been reflected in the accompanying Consolidated Financial Statements. All such adjustments are of a normal, recurring nature. Mid Penn has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The accounting and reporting policies of Mid Penn conform with accounting principles generally accepted in the United States ("GAAP") and to general practice within the financial industry. Following is a description of the more significant accounting policies. Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates subject to significant change include the allowance for loan losses, the expected cash flows and collateral values associated with impaired loans, the carrying value of other real estate owned ("OREO"), the fair value of financial instruments, business combination fair value computations, the valuation of goodwill and other intangible assets, stock-based compensation and deferred income tax assets. Significant Group of Concentrations of Credit Risk - Most of the Corporation’s activities are with customers located within Pennsylvania . "Note 3 - In vestment Securities" discusses the types of investment securities in which the Corporation invests. "Note 4 - L oans and Allowance for Loan Losses" discusses the types of lending that the Corporation engages in as well as loan concentrations. The Corporation does not have a significant concentration of credit risk with any one customer. Fair Value Measurements - The Corporation uses estimates of fair value in applying various accounting standards for its consolidated financial statements on either a recurring or non-recurring basis. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. The Corporation groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. These levels are as follows Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; Level 2 - Observable inputs other than level 1 inputs, including quoted prices for similar assets and liabilities, quoted prices for identical assets and liabilities in less active markets and other inputs that can be corroborated by observable market data; and Level 3 - Unobservable inputs supported by limited or no market activity or data and inputs requiring significant management judgment or estimation; valuation techniques utilizing level 3 inputs include option pricing models, discounted cash flow models and similar techniques. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. It is the Corporations’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs in estimating fair value. Unobservable inputs are utilized in determining fair value estimates only to the extent that observable inputs are not available. The need to use unobservable inputs generally results from a lack of market liquidity and trading volume. Transfers between levels of fair value hierarchy are recorded at the end of the reporting period. Cash and Cash Equivalents - For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days. Restrictions on Cash and Due from Bank Accounts - The Bank is required by banking regulations to maintain certain minimum cash reserves. As of both December 31, 2022 and 2021, there was no cash reserve balances required to be maintained at the Federal Reserve Bank of Philadelphia because the Bank had sufficient vault cash available. Debt Investment Securities - Mid Penn determines the classification of investment securities at the time of purchase. If Mid Penn has the intent and the ability at the time of purchase to hold debt securities until maturity, they are classified as held-to-maturity ("HTM"). HTM investment securities are stated at amortized cost. Debt securities Mid Penn does not intend to hold to maturity are classified as available for sale ("AFS") and carried at estimated fair value with unrealized gains or losses reported as a separate component of stockholders’ equity in accumulated other comprehensive income (loss), net of applicable income taxes. Available for sale securities are a part of Mid Penn’s asset/liability management strategy and may be sold in response to changes in interest rates, prepayment risk or other market factors. Management has elected to reclassify realized gains and losses from accumulated other comprehensive income when securities are sold on the trade date. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts on debt securities are amortized as an adjustment to interest income over the period to maturity of the related security using the effective interest method. Realized gains or losses on the sale of securities are determined using the specific identification method. Mid Penn reviews investment securities for impairment on a quarterly basis or more frequently if events and circumstances warrant. In order to determine if a decline in fair value below amortized cost represents other-than-temporary impairment ("OTTI"), management considers several factors, including but not limited to, the length of time and extent to which the fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer (considering factors such as adverse conditions specific to the issuer and the security and ratings agency actions) and the Corporation’s intent and ability to retain the investment in order to allow for an anticipated recovery in fair value. Mid Penn recognizes OTTI of a debt security for which there has been a decline in fair value below amortized cost if (i) management intends to sell the security, (ii) it is more likely than not that Mid Penn will be required to sell the security before recovery of its amortized cost basis, or (iii) Mid Penn does not expect to recover the entire amortized cost basis of the security. The amount by which amortized cost exceeds the fair value of a debt security that is considered to have OTTI is separated into a component representing the credit loss, which is recognized in earnings, and a component related to all other factors, which is recognized in other comprehensive income (loss). The measurement of the credit loss component is equal to the difference between the debt security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. If Mid Penn intends to sell the security, or if it is more likely than not it will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the security. Equity Securities - The Corporation reports its equity securities with readily determinable fair values at fair value on the Consolidated Balance Sheet, with realized and unrealized gains and losses reported in other expense on the Consolidated Statements of Income. As of December 31, 2022 and 2021, Mid Penn’s equity securities consisted of Community Reinvestment Act funds totaling $430 thousand and $500 thousand, respectively. No equity securities were sold during the years ended December 31, 2022, 2021 and 2020. Federal Home Loan Bank ("FHLB") and Atlantic Community Bankers' Bank ("ACBB") Stock - The Bank is a member of the FHLB and the ACBB and is required to maintain an investment in the stock of the FHLB and ACBB. No market exists for these stocks, and the Bank’s investment can be liquidated only through redemption by the FHLB or ACBB, at the discretion of and subject to conditions imposed by the FHLB and ACBB. Historically, FHLB and ACBB stock redemptions have been at cost (par value), which equals the Corporation’s carrying value. The Corporation monitors its investment in FHLB and ACBB stock for impairment through review of recent financial results of the FHLB and ACBB including capital adequacy and liquidity position, dividend payment history, redemption history and information from credit agencies. The Corporation has not identified any indicators of impairment of FHLB or ACBB stock. During the years ended December 31, 2022, 2021, and 2020 dividends received from the FHLB totaled $289 thousand, $345 thousand, and $360 thousand respectively. Investment in Limited Partnership - Mid Penn is a limited partner in a partnership that provides low-income housing in Enola, Pennsylvania. The carrying value of Mid Penn’s investment in the limited partnership was $58 thousand at December 31, 2022 and $102 thousand at December 31, 2021, net of amortization, using the straight-line method and is reported in other assets on the Consolidated Balance Sheets. Mid Penn’s maximum exposure to loss is limited to the carrying value of its investment. Mid Penn also owns a limited partnership interest in a low-income housing project to construct thirty-seven apartments and common amenities in Dauphin County, Pennsylvania. The total investment in this limited partnership, net of amortization, was $5.2 million and $6.0 million on December 31, 2022 and December 31, 2021, respectively, and was included in the reported balance of other assets on the Consolidated Balance Sheet. All of the units qualified for Federal Low-Income Housing Tax Credits ("LIHTCs") as provided for in Section 42 of the Internal Revenue Code of 1986, as amended. Mid Penn’s limited partner capital contribution commitment is $7.6 million, and the investment was fully funded within a three-year period beginning in 2018 and ending during the first quarter of 2021. The investment in the limited partnership is reported in other assets on the Consolidated Balance Sheet and is being amortized over a ten-year period using the cost amortization method which began upon commencement of operations of the facility in December 2019. The project was formally awarded $8.5 million in total LIHTCs by the Pennsylvania Housing Finance Agency, which will be recognized over the ten-year period from December 2019 through November 2029. Mid Penn received low-income housing tax credits related to this project of $853 thousand for both tax years ended December 31, 2022 and 2021 and $74 thousand for the tax year ended December 31, 2020. Loans Held for Sale - During the third quarter of 2021, the Corporation made the election to measure mortgage loans held for sale at fair value. Derivative financial instruments related to mortgage banking activities are also recorded at fair value, as detailed under the heading "Mortgage Banking Derivative Financial Instruments," below. The Corporation determines fair value for its mortgage loans held for sale based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Changes in fair values during the period are recorded as components of mortgage banking income on the Consolidated Statements of Income. Interest income earned on mortgage loans held for sale is classified in interest income on the Consolidated Statements of Income. In periods prior to the third quarter of 2021, m ortgage loans originated and intended for sale in the secondary market were included in loans held for sale and were reported at the lower of cost or fair value, as determined by the aggregate commitments from investors or current investor yield requirements. Gains and losses on sales of mortgage loans are included in noninterest income in the Consolidated Statements of Income. Loans - Loans that management has the intent and ability to hold for the foreseeable future are reported at their outstanding principal balances, net of an allowance for loan losses, unamortized deferred fees and costs and unamortized premiums or discounts. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using methods which approximate the level yield method. Discounts and premiums are amortized or accreted to interest income over the estimated term of the loans using methods that approximate the level yield method. Interest income on loans is accrued based on the unpaid principal balance outstanding and the contractual terms of the loan agreements. A substantial portion of the loan portfolio is comprised of commercial and real estate loans throughout Pennsylvania. The ability of the Corporation’s debtors to honor their contracts is dependent upon the general economic conditions of this area. The loan portfolio is segmented into commercial and industrial loans, commercial real estate loans, commercial real estate – construction loans, residential mortgage loans, home equity loans and consumer loans. Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to repay the loan through operating profitably and effectively growing its business. The Corporation’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the credit quality and cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee to add strength to the credit and reduce the risk on a transaction to an acceptable level; however, some short-term loans may be made on an unsecured basis to the most credit worthy borrowers. Commercial loans also include loans originated under the Paycheck Protection Program ("PPP"). These loans are underwritten and originated in accordance with program guidelines. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. With respect to loans to developers and builders, the Corporation generally requires the borrower to have a proven record of success and an expertise in the building industry. Commercial real estate - construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Commercial real estate - construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Commercial real estate - construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. The Corporation’s non-real estate consumer loans are based on the borrower’s proven earning capacity over the term of the loan. The Corporation monitors payment performance periodically for consumer loans to identify any deterioration in the borrower’s financial strength. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by management and staff. This activity, coupled with a relatively small volume of consumer loans, minimizes risk. Acquired Loans - Loans that Mid Penn acquires in connection with business combinations are recorded at fair value with no carryover of predecessor institutions’ related allowance for loan losses. The balance of loans acquired at fair value and included in the balance of loans, net of unearned interest, on the Consolidated Balance Sheets totaled $768.5 million and $1.0 billion as of December 31, 2022 and December 31, 2021, respectively. Determining the fair value of acquired loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Loans acquired with credit deterioration are accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . For these loans, the excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require Mid Penn to evaluate the need for an additional allowance. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which Mid Penn will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan. Loans acquired through business combinations that meet the specific criteria of ASC 310-30 are individually evaluated each period to analyze expected cash flows. To the extent that the expected cash flows of a loan have decreased due to credit deterioration, Mid Penn establishes an allowance. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20. These loans are initially recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield, using the level yield method, over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Acquired loans that met the criteria for impaired or non-accrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if Mid Penn expects to fully collect the new carrying value (i.e. fair value) of the loans established at the time of acquisition. As such, Mid Penn may no longer consider the loan to be non-accrual or non-performing at the date of acquisition and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. Non-accrual Loans - The Corporation classifies loans as past due when the payment of principal or interest is greater than 30 days delinquent based on the contractual next payment due date. The Corporation’s policies related to when loans are placed on non-accrual status conform to guidelines prescribed by regulatory authorities. Loans are placed on non-accrual status when it is probable that principal or interest is not fully collectible, or generally when principal or interest becomes 90 days past due, whichever occurs first. When loans are placed on non-accrual status, interest receivable is reversed against interest income in the current period and amortization of any discount ceases. Interest payments received thereafter are applied as a reduction to the remaining principal balance unless management believes that the ultimate collection of the principal is likely, in which case payments are recognized in earnings on a cash basis. Loans are removed from non-accrual status when they become current as to both principal and interest and the collectability of principal and interest is no longer doubtful. Generally, a non-accrual loan that is restructured remains on non-accrual for a reasonable period of time (generally, at least nine consecutive months) to demonstrate the borrower can meet the restructured terms. However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains classified as a non-accrual loan. Troubled Debt Restructuring ("TDR") - In certain situations, due to economic or legal reasons related to a borrower’s financial difficulties, the Corporation may grant a concession to the borrower for other than an insignificant period of time that it would not otherwise consider. At that time, the related loan is classified as a TDR and considered impaired. The concessions granted may include rate reductions, principal forgiveness, payment forbearance, extensions of maturity at rates of interest below those commensurate with the risk profile of the borrower, and other actions intended to minimize economic loss. A troubled debt restructured loan is generally placed on non-accrual status at the time of the modification unless the borrower has no history of missed payments for six months prior to the restructuring. If the borrower performs pursuant to the modified loan terms for at least six months and the remaining loan balance is considered collectible, the loan is returned to accrual status. Section 4013 of the CARES Act provides financial institutions the opportunity to opt out of applying the TDR accounting guidance in ASC 310-40 for certain loan modifications. Loan modifications made between March 1, 2020 and the earlier of (i) 60 days after the end of the national emergency proclamation or (ii) December 31, 2020. Section 541 of the Consolidated Appropriations Act of 2021, amended Section 4013 of the CARES Act to extend this relief to the earlier of (i) 60 days after the end of the national emergency proclamation or (ii) January 1, 2022. Impaired Loans - Loans are considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreements. All impaired loans are reviewed individually for specific reserves on a monthly basis. Allowance for Loan Losses - The allowance for credit losses consists of the allowance for loan losses ("allowance"), and the reserve for unfunded lending commitments. The allowance represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the Consolidated Balance Sheet. The reserve for unfunded lending commitments was $85 thousand and $72 thousand at December 31, 2022 and 2021, respectively. The allowance is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged off to the allowance, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of bankruptcy or if there is an amount deemed uncollectible. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance is maintained at a level considered by management to be adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on Mid Penn’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include changes in economic conditions, fluctuations in loan quality measures, changes in collateral values, changes in the experience of the lending staff and loan review systems, changes in lending policies and procedures (including underwriting standards), changes in the mix and volume of loans originated, the effect of other external factors, such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio, shifting industry or portfolio concentrations, and other relevant factors. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions and a narrative accompanying the allowance for loan loss calculation. The unallocated component of the allowance for loan losses covers several considerations that are not specifically measurable through either the specific and general components. The unallocated component allocation recognizes the inherent imprecision in our allowance for loan loss methodology, or any alternative methodology, for estimating specific and general loan losses, including the unpredictable timing and amounts of charge-offs, the fact that historical loss averages don’t necessarily correlate to future loss trends, and unexpected changes to specific-credit or general portfolio future cash flows and collateral values which could negatively impact unimpaired portfolio loss factors. Mid Penn evaluates loans for charge-off on a monthly basis. Policies that govern the recommendation for charge-off are unique to the type of loan being considered. Commercial loans classified as substandard non-accrual, doubtful, having probable loss will first have a collateral evaluation completed in accordance with the guidance on impaired loans. Once the collateral evaluation has been completed, a specific allocation of allowance is made based upon the results of the evaluation. The remaining balance remains a non-performing loan with the original terms and interest rate intact (not restructured). In the event the loan is unsecured, the loan would have been charged-off at the recognition of impairment. Commercial real estate loans determined to be impaired will also have an initial collateral evaluation completed in accordance with the guidance on impaired loans. An updated real estate valuation is ordered and the collateral evaluation is modified to reflect any variations in value. A specific allocation of allowance is made for any anticipated collateral shortfall. The remaining balance remains a non-performing loan with the original terms and inte |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Riverview Financial Corporation Acquisition ("Riverview Acquisition") On November 30, 2021, Mid Penn completed its acquisition of Riverview through the merger of Riverview with and into Mid Penn. In connection with this acquisition, Riverview Bank, Riverview’s wholly-owned bank subsidiary, merged with and into Mid Penn Bank. Pursuant to the merger agreement, shareholders of Riverview common stock received, for each share of Riverview common stock held at the effective time of the merger, 0.4833 shares of Mid Penn common stock as merger consideration with an acquisition date fair value of $142.2 million based on the closing stock price of Mid Penn’s common stock on November 30, 2021 of $31.46. This exchange ratio did not change as a result of changes in the Mid Penn share price. Additionally, outstanding options at the time of the merger were converted into the right to receive an amount in cash equal to the product obtained by multiplying the aggregate number of shares of Riverview common stock that were issuable upon exercise of each option outstanding, and the closing sale price of Mid Penn’s common stock on the fifth (5th) business day prior to the merger closing date multiplied by the exchange ratio, less the per share exercise price of each option outstanding, without interest. There were 172,964 options outstanding to purchase Riverview common stock and the closing price of Mid Penn common stock was at $30.76 per share on the fifth business day prior to the merger closing date. Additionally, 2,500 shares of restricted stock were paid out in cash, resulting in $776 thousand of cash consideration relating to stock awards. Including $16 thousand of cash paid in lieu of fractional shares, the total fair value of consideration paid was $143.0 million. The assets and liabilities of Riverview were recorded on the Consolidated Balance Sheets of Mid Penn at their estimated fair value as of November 30, 2021, and their results of operations have been included in the Consolidated Income Statement of the Corporation since such date. Riverview has been fully integrated into Mid Penn; therefore, the amount of revenue and earnings of Riverview included in the Consolidated Income Statement since the acquisition date is impracticable to provide. The acquisition of Riverview resulted in the recognition and recording of $51.0 million of goodwill, a core deposit intangible of $3.4 million, and a customer list intangible of $2.2 million. The core deposit intangible and customer list intangible will be amortized over a ten-year period using a sum of the years’ digits basis. The goodwill will not be amortized but will be measured annually for impairment or more frequently if circumstances require. See "Note 6 - Goodwill and Intangible Assets," for additional details. The allocation of the purchase price is as follows: (In thousands) Assets acquired: Cash and cash equivalents $ 316,079 Investment securities 226 Restricted stock 2,209 Loans 837,505 Goodwill 51,031 Core deposit intangible 3,391 Customer list intangible 2,160 Bank owned life insurance 32,120 Premises and equipment 12,524 Deferred income taxes 7,116 Accrued interest receivable 1,919 Other assets 6,641 Total assets acquired 1,272,921 Liabilities assumed: Deposits: Noninterest-bearing demand 182,291 Interest-bearing demand 371,283 Money Market 152,365 Savings 176,294 Time 199,414 Long-term debt 6,500 Subordinated debt and trust preferred securities 36,308 Accrued interest payable 439 Other liabilities 5,043 Total liabilities assumed 1,129,937 Consideration paid $ 142,984 Cash paid $ 792 Fair value of common stock issued 142,192 Accounting Standards Codification ("ASC") Topic 805, Business Combinations, allows for adjustments to goodwill up to one year after the merger date for information that becomes available during this post-merger period that reflects circumstances at the date of merger. During 2022, the Corporation increased its goodwill $36 thousand to account for changes to the deferred income tax asset and current income tax receivable upon the completion of the Riverview final tax return. The following table summarizes the final estimated fair value of the assets acquired and liabilities and equity assumed in the Riverview transaction. (In thousands) Total purchase price (consideration paid) $ 142,984 Net assets acquired: Cash and cash equivalents 316,079 Investment securities 226 Restricted stock 2,209 Loans 837,505 Core deposit intangible 3,391 Customer list intangible 2,160 Bank owned life insurance 32,120 Premises and equipment 12,524 Deferred income taxes 7,116 Accrued interest receivable 1,919 Other assets 6,641 Deposits: Noninterest-bearing demand (182,291) Interest-bearing demand (371,283) Money Market (152,365) Savings (176,294) Time (199,414) Long-term debt (6,500) Subordinated debt and trust preferred securities (36,308) Accrued interest payable (439) Other liabilities (5,043) Net assets acquired 91,953 Goodwill $ 51,031 In general, factors contributing to goodwill recognized as a result of the Riverview acquisition included expected cost savings from combined operations, opportunities to expand into several new markets, and growth and profitability potential from the repositioning of short-term investments into higher-yielding loans. The goodwill acquired as a result of the Riverview Acquisition is not tax deductible. The fair value of the financial assets acquired included loans receivable with a net amortized cost basis of $837.5 million. The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (In thousands) Gross amortized cost basis at November 30, 2021 $ 850,920 Market rate adjustment 529 Credit fair value adjustment on pools of homogeneous loans (13,117) Credit fair value adjustment on impaired loans (827) Fair value of purchased loans at November 30, 2021 $ 837,505 The market rate adjustment represents the movement in market interest rates, irrespective of credit adjustments, compared to the contractual rates of the acquired loans. The credit adjustment made on pools of homogeneous loans represents the changes in credit quality of the underlying borrowers from loan inception to the acquisition date. The credit adjustment on impaired loans is derived in accordance with ASC 310-30-30 and represents the portion of the loan balance that has been deemed uncollectible based on our expectations of future cash flows for each respective loan. The information about the acquired Riverview impaired loan portfolio as of November 30, 2021 is as follows: (In thousands) Contractually required principal and interest at acquisition $ 5,591 Contractual cash flows not expected to be collected (nonaccretable discount) (1,739) Expected cash flows at acquisition 3,852 Interest component of expected cash flows (accretable discount) (541) Fair value of acquired loans $ 3,311 The following table presents pro forma information as if the merger between Mid Penn and Riverview had been completed on January 1, 2020. The pro forma information does not necessarily reflect the results of operations that would have occurred had Mid Penn merged with Riverview at the beginning of 2020. The supplemental pro forma earnings for the year ended December 31, 2020 exclude $3.1 million of merger related costs incurred by Mid Penn in 2021 related to the Riverview acquisition, and goodwill impairment of $24.8 million recognized by Riverview in 2020. The pro forma financial information does not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions or revenues, expense efficiencies, or other factors. For the Year Ended (In thousands, except per share data) 2021 2020 Net interest income after loan loss provision $ 147,987 $ 116,989 Noninterest income 32,638 26,681 Noninterest expense 123,475 108,531 Net income 57,150 35,139 Net income per common share 3.73 2.72 Managing Partners, Inc. ("MPI Acquisition") On December 30, 2022, Mid Penn purchased the assets of Managing Partners, Inc. in a business combination. Managing Partners Insurance was an independent insurance agency that serviced the Central Pennsylvania area. Goodwill totaling $360 thousand and a customer list with a fair market value of $541 thousand were booked as a result of this business combination. See "Note 6 - Goodwill and Intangible Assets," for additional details. Brunswick Bancorp Acquisition ("Brunswick Acquisition") On December 20, 2022, Mid Penn entered into an Agreement and Plan of Merger ("Merger Agreement") with Brunswick Bancorp ("Brunswick") pursuant to which Brunswick will merge with and into Mid Penn ("Merger"), with Mid Penn being the surviving corporation in the Merger. Upon consummation of the Merger, Brunswick Bank and Trust Company, a wholly-owned subsidiary of Brunswick, will be merged with and into Mid Penn Bank ("Bank Merger"), a wholly-owned subsidiary of Mid Penn, with Mid Penn Bank being the surviving bank in the Bank Merger. The Merger Agreement was unanimously approved by the boards of directors of Mid Penn and Brunswick. See "Form 8-K filed on December 20, 2022," for additional details. Under the terms of the Merger Agreement, shareholders of Brunswick will have the right to elect to receive, subject to adjustment and proration as described in the Merger Agreement, either (A) 0.598 shares of Mid Penn common stock or (B) Eighteen Dollars ($18.00) for each share of Brunswick common stock they own. It is expected that the Merger will be completed in the second quarter of 2023. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Securities Financing Transactions Disclosures [Abstract] | |
Investment Securities | Investment Securities The amortized cost and fair value on investment securities as of December 31 are as follows: (In thousands) Amortized Unrealized Unrealized Fair 2022 Available-for-sale debt securities: U.S. Treasury and U.S. government agencies $ 36,528 $ — $ 1,614 $ 34,914 Mortgage-backed U.S. government agencies 185,993 — 19,078 166,915 State and political subdivision obligations 4,354 — 815 3,539 Corporate debt securities 35,467 — 2,957 32,510 Total available-for-sale debt securities $ 262,342 $ — $ 24,464 $ 237,878 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies $ 245,671 $ — $ 34,834 $ 210,837 Mortgage-backed U.S. government agencies 50,710 — 6,676 44,034 State and political subdivision obligations 87,125 — 8,345 78,780 Corporate debt securities 15,988 — 1,134 14,854 Total held-to-maturity debt securities 399,494 — 50,989 348,505 Total $ 661,836 $ — $ 75,453 $ 586,383 (In thousands) Amortized Unrealized Unrealized Fair 2021 Available-for-sale debt securities: Mortgage-backed U.S. government agencies $ 49,760 $ 3 $ 283 $ 49,480 State and political subdivision obligations 3,899 26 11 3,914 Corporate debt securities 9,525 — 57 9,468 Total available-for-sale debt securities $ 63,184 $ 29 $ 351 $ 62,862 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies $ 178,136 $ 26 $ 1,165 $ 176,997 Mortgage-backed U.S. government agencies 61,157 440 272 61,325 State and political subdivision obligations 75,958 2,305 27 78,236 Corporate debt securities 14,006 133 71 14,068 Total held-to-maturity debt securities 329,257 2,904 1,535 330,626 Total $ 392,441 $ 2,933 $ 1,886 $ 393,488 Estimated fair values of debt securities are based on quoted market prices, where applicable. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments, adjusted for differences between the quoted instruments and the instruments being valued. See "Note 13 - Fair Value Measurement " , for more information on the fair value of investment securities. Investment securities having a fair value of $338.8 million at December 31, 2022, and $244.8 million at December 31, 2021, were pledged primarily to secure public fund deposits. Mid Penn also obtains letters of credit from the Federal Home Loan Bank of Pittsburgh ("FHLB") to secure certain public fund deposits of municipality and school district customers who agree to use of the FHLB letters of credit. These FHLB letter of credit commitments totaled $189.0 million as of December 31, 2022 and $450.9 million as of December 31, 2021. The following table presents gross unrealized losses and fair value of investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022 and 2021. (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2022 Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized Available-for-sale debt securities: U.S. Treasury and U.S. government agencies 19 $ 34,914 $ 1,614 — $ — $ — 19 $ 34,914 $ 1,614 Mortgage-backed U.S. government agencies 69 131,879 11,876 24 35,036 7,202 93 166,915 19,078 State and political subdivision obligations 6 2,521 671 2 1,018 144 8 3,539 815 Corporate debt securities 12 25,063 2,153 4 4,196 804 16 29,259 2,957 Total available-for-sale debt securities 106 194,377 16,314 30 40,250 8,150 136 234,627 24,464 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 54 84,946 10,093 91 125,891 24,741 145 210,837 34,834 Mortgage-backed U.S. government agencies 40 13,866 1,071 24 30,168 5,605 64 44,034 6,676 State and political subdivision obligations 185 73,735 7,413 18 4,616 932 203 78,351 8,345 Corporate debt securities 4 5,721 317 5 5,182 817 9 10,903 1,134 Total held-to-maturity debt securities 283 178,268 18,894 138 165,857 32,095 421 344,125 50,989 Total 389 $ 372,645 $ 35,208 168 $ 206,107 $ 40,245 557 $ 578,752 $ 75,453 (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2021 Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized Available-for-sale securities: U.S. government agencies 24 $ 45,476 $ 283 — $ — $ — 24 $ 45,476 $ 283 State and political subdivision obligations 2 1,168 11 — — — 2 1,168 11 Corporate debt securities 4 4,943 57 — — — 4 4,943 57 Total available-for-sale securities 30 51,587 351 — — — 30 51,587 351 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 91 149,425 1,165 — — — 91 149,425 1,165 Mortgage-backed U.S. government agencies 24 39,995 272 — — — 24 39,995 272 State and political subdivision obligations 17 5,302 25 1 255 2 18 5,557 27 Corporate debt securities 6 6,928 71 — — — 6 6,928 71 Total held to maturity securities 138 201,650 1,533 1 255 2 139 201,905 1,535 Total 168 $ 253,237 $ 1,884 1 $ 255 $ 2 169 $ 253,492 $ 1,886 Management evaluates securities for other-than-temporary impairment at least on quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, and the financial condition and near-term prospects of the issuer. In addition, for debt securities, Mid Penn considers whether management has the intent to sell the security, it is more likely than not that management will be required to sell the security prior to its anticipated recovery, and whether management expects to recover the entire amortized cost basis. For equity securities, management considers the intent and ability to hold securities until recovery of unrealized losses. At December 31, 2022 and 2021, the majority of the unrealized losses on securities in an unrealized loss position were attributable to U.S. Treasury and U.S. government agencies, and mortgage-backed U.S. government agencies. Mid Penn had no securities considered by management to be other-than-temporarily impaired as of December 31, 2022 and December 31, 2021, and did not record any securities impairment charges in the respective periods ended on these dates. Mid Penn does not consider the securities with unrealized losses on the respective dates to be other-than-temporarily impaired as the unrealized losses were deemed to be temporary changes in value related to market movements in interest yields at various periods similar to the maturity dates of holdings in the investment portfolio, and not reflective of an erosion of credit quality. The following table presents information related to gross realized gains and losses on sales of AFS securities: For the year ended December 31, (In thousands) 2022 2021 2020 Gross realized gains $ — $ 79 $ 479 Gross realized losses — — (12) Net gains $ — $ 79 $ 467 The table below illustrates the maturity distribution of investment securities at amortized cost and fair value at December 31, 2022. (In thousands) Available-for-sale Held-to-maturity December 31, 2022 Amortized Fair Amortized Fair Due in 1 year or less $ 250 $ 250 $ 3,745 $ 3,719 Due after 1 year but within 5 years 41,289 39,865 87,184 81,927 Due after 5 years but within 10 years 31,942 28,555 214,469 183,635 Due after 10 years 2,868 2,293 43,386 35,190 76,349 70,963 348,784 304,471 Mortgage-backed securities 185,993 166,915 50,710 44,034 $ 262,342 $ 237,878 $ 399,494 $ 348,505 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Mid Penn’s loan portfolio by type is summarized by loans (net of deferred fees and costs of $3.9 million and $6.3 million as of December 31, 2022 and 2021, respectively) rated as "pass" and loans classified as "special mention" and "substandard" within Mid Penn’s internal risk rating system are as follows as of December 31: (In thousands) Pass Special Substandard Total 2022 Commercial and industrial $ 582,540 $ 4,212 $ 9,290 $ 596,042 Commercial real estate 2,018,088 12,325 22,521 2,052,934 Commercial real estate - construction 438,990 2,256 — 441,246 Residential mortgage 299,288 3,104 2,994 305,386 Home equity 109,971 — 864 110,835 Consumer 7,676 — — 7,676 Total loans $ 3,456,553 $ 21,897 $ 35,669 $ 3,514,119 (In thousands) Pass Special Substandard Total 2021 Commercial and industrial $ 606,484 $ 10,321 $ 2,757 $ 619,562 Commercial real estate 1,601,196 35,508 31,438 1,668,142 Commercial real estate - construction 371,337 — 1,397 372,734 Residential mortgage 319,862 294 3,067 323,223 Home equity 106,853 534 2,919 110,306 Consumer 10,429 — — 10,429 Total loans $ 3,016,161 $ 46,657 $ 41,578 $ 3,104,396 PPP loans, net of deferred fees, totaling $2.6 million and $111.3 million as of December 31, 2022 and 2021 , respectively, are included in commercial and industrial loans in the tables above . All PPP loans are fully guaranteed by the SBA; therefore, all PPP loans outstanding (net of the related deferred PPP fees) are classified as "pass" within Mid Penn’s internal risk rating system as of December 31, 2022. The Bank has granted loans to certain of its executive officers, directors, and their related interests. The aggregate amount of these loans was $30.7 million and $14.7 million at December 31, 2022 and 2021, respectively. During 2022, $21.2 million of new loans, advances and loans to new related parties were extended and repayments totaled $5.2 million. None of these loans were past due, in non-accrual status, or restructured at December 31, 2022. Mid Penn had no loans classified as "Doubtful" as of December 31, 2022 and 2021. There was $122 thousand and $729 thousand in loans for which formal foreclosure proceedings were in process at December 31, 2022 and 2021, respectively. Impaired loans by loan portfolio class are summarized as follows: December 31, 2022 December 31, 2021 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial and industrial $ — $ 18 $ — $ — $ 31 $ — Commercial real estate 2,093 2,514 — 854 1,243 — Commercial real estate - construction — 2 — 22 27 — Residential mortgage 1,079 1,129 — 1,259 1,295 — Home equity 33 34 — 2,377 2,377 — With no related allowance recorded and acquired with credit deterioration: Commercial real estate $ 2,537 $ 3,532 $ — $ 2,231 $ 2,909 $ — Commercial real estate - construction — — — 1,196 1,469 — Residential mortgage 1,014 1,559 — 1,362 1,847 — Home equity 126 154 — 86 111 — With an allowance recorded: Commercial and industrial $ 1,222 $ 1,703 $ 801 $ 308 $ 339 $ 67 Commercial real estate 230 235 64 287 359 121 Home equity 252 252 22 — — — Total Impaired Loans: Commercial and industrial $ 1,222 $ 1,721 $ 801 $ 308 $ 370 $ 67 Commercial real estate 4,860 6,281 64 3,372 4,511 121 Commercial real estate - construction — 2 — 1,218 1,496 — Residential mortgage 2,093 2,688 — 2,621 3,142 — Home equity 411 440 22 2,463 2,488 — The average recorded investment of impaired loans and related interest income recognized are summarized as follows for the years ended December 31: 2022 2021 2020 (In thousands) Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income With no related allowance recorded: Commercial and industrial $ 45 $ — $ 303 $ 2 $ 1,136 $ — Commercial real estate 907 — 2,308 2 9,379 5 Commercial real estate - construction 89 — 26 — 44 — Residential mortgage 845 23 974 26 998 26 Home equity 468 185 2,367 2 1,801 — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ — $ — $ — $ — $ 1 $ — Commercial real estate 2,893 — 1,485 — 1,423 — Commercial real estate - construction — — 122 — — — Residential mortgage 1,165 — 401 — 361 — Home equity 129 — 8 — 1 — With an allowance recorded: Commercial and industrial $ 847 $ — $ 211 $ — $ 205 $ — Commercial real estate 167 — 1,011 — 752 — Home equity 153 — — — — — Total: Commercial and industrial $ 892 $ — $ 514 $ 2 $ 1,342 $ — Commercial real estate 3,967 — 4,804 2 11,554 5 Commercial real estate - construction 89 — 148 — 44 — Residential mortgage 2,010 23 1,375 26 1,359 26 Home equity 750 185 2,375 2 1,802 — The following table provides activity for the accretable yield of purchased impaired loans for the years ended: December 31, (In thousands) 2022 2021 Accretable yield, beginning of period $ 580 $ 40 Acquisition of impaired loans — 541 Accretable yield amortized to interest income (261) (1) Accretable yield, end of period $ 319 $ 580 Non-accrual loans by loan portfolio class, including loans acquired with credit deterioration, are summarized as follows as of December 31: (In thousands) 2022 2021 Commercial and industrial $ 1,222 $ 308 Commercial real estate 4,864 3,372 Commercial real estate - construction — 1,218 Residential mortgage 1,698 2,186 Home equity 411 2,463 $ 8,195 $ 9,547 If non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, Mid Penn would have recorded interest income on these loans of $280 thousand, $177 thousand, and $638 thousand, in the years ended December 31, 2022, 2021, and 2020, respectively. Mid Penn has no commitments to lend additional funds to borrowers with impaired or non-accrual loans. 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 are summarized as follows: (In thousands) 30-59 60-89 Greater Total Past Current Total Loans Loans 2022 Commercial and industrial $ 1,808 $ 3 $ 1,854 $ 3,665 $ 592,377 $ 596,042 $ 654 Commercial real estate 1,792 — 1,438 3,230 2,047,167 2,050,397 — Commercial real estate - construction 2,258 — — 2,258 438,988 441,246 — Residential mortgage 2,642 872 415 3,929 300,443 304,372 — Home equity 1,184 83 255 1,522 109,187 110,709 — Consumer 44 19 — 63 7,613 7,676 — Loans acquired with credit deterioration: Commercial real estate 78 — 826 904 1,633 2,537 — Residential mortgage 223 228 209 660 354 1,014 — Home equity — — 32 32 94 126 — Total $ 10,029 $ 1,205 $ 5,029 $ 16,263 $ 3,497,856 $ 3,514,119 $ 654 (In thousands) 30-59 60-89 Greater Total Past Current Total Loans Loans 2021 Commercial and industrial $ 1,378 $ 62 $ 404 $ 1,844 $ 617,718 $ 619,562 $ 96 Commercial real estate 32 55 769 856 1,665,055 1,665,911 — Commercial real estate - construction — — 205 205 371,333 371,538 205 Residential mortgage 1,246 205 1,002 2,453 319,408 321,861 212 Home equity 403 — 2,377 2,780 107,440 110,220 — Consumer 6 2 2 10 10,419 10,429 2 Loans acquired with credit deterioration: Commercial real estate — 3 1,628 1,631 600 2,231 — Commercial real estate - construction — — — — 1,196 1,196 — Residential mortgage 54 — 818 872 490 1,362 — Home equity — — — — 86 86 — Total $ 3,119 $ 327 $ 7,205 $ 10,651 $ 3,093,745 $ 3,104,396 $ 515 Activity in the allowance for loan losses for the years ended December 31, 2022, 2021, and 2020, and the recorded investment in loans receivable as of December 31, 2022, 2021, and 2020 are as follows: (In thousands) Commercial Commercial Commercial Residential Home Consumer Unallocated Total Balance at December 31, 2019 $ 2,341 $ 6,259 $ 51 $ 417 $ 442 $ 2 $ 3 $ 9,515 Loans charged off (45) (258) (7) (4) — (58) — (372) Recoveries 3 1 2 3 3 27 — 39 Provisions 767 2,653 88 13 62 30 587 4,200 Balance at December 31, 2020 3,066 8,655 134 429 507 1 590 13,382 Loans charged off (866) (1,044) (23) (13) — (42) — (1,988) Recoveries 13 207 8 11 — 19 — 258 Provisions (credits) 1,226 1,597 (81) 32 53 24 94 2,945 Balance at December 31, 2021 3,439 9,415 38 459 560 2 684 14,597 Loans charged off (1) (7) — (25) (1) (97) — (131) Recoveries 13 128 24 2 2 22 — 191 Provisions (credits) 1,142 3,606 (62) 222 100 102 (810) 4,300 Balance at December 31, 2022 $ 4,593 $ 13,142 $ — $ 658 $ 661 $ 29 $ (126) $ 18,957 (In thousands) Allowance for Loan Losses at December 31, 2022 Commercial Commercial Commercial Residential Home Consumer Unallocated Total Collectively evaluated for impairment $ 3,792 $ 13,078 $ — $ 658 $ 639 $ 29 $ (126) $ 18,070 Individually evaluated for impairment 801 64 — — 22 — — 887 $ 4,593 $ 13,142 $ — $ 658 $ 661 $ 29 $ (126) $ 18,957 Loans, Net of Unearned Interest Collectively evaluated for impairment $ 594,820 $ 2,048,074 $ 441,246 $ 303,293 $ 110,424 $ 7,676 $ — $ 3,505,533 Individually evaluated for impairment 1,222 2,323 — 1,079 285 — — 4,909 Acquired with credit deterioration — 2,537 — 1,014 126 — 3,677 $ 596,042 $ 2,052,934 $ 441,246 $ 305,386 $ 110,835 $ 7,676 $ — $ 3,514,119 (In thousands) Allowance for Loan Losses at December 31, 2021 Commercial Commercial Commercial Residential Home Consumer Unallocated Total Collectively evaluated for impairment $ 3,372 $ 9,294 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,409 Individually evaluated for impairment 67 121 — — — — — 188 $ 3,439 $ 9,415 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,597 Loans, Net of Unearned Interest Collectively evaluated for impairment $ 619,254 $ 1,664,770 $ 371,516 $ 320,602 $ 107,843 $ 10,429 $ — $ 3,094,414 Individually evaluated for impairment 308 1,141 22 1,259 2,377 — — 5,107 Acquired with credit deterioration — 2,231 1,196 1,362 86 — — 4,875 $ 619,562 $ 1,668,142 $ 372,734 $ 323,223 $ 110,306 $ 10,429 $ — $ 3,104,396 The recorded investments in troubled debt restructured loans at December 31 are as follows: (In thousands) Pre-Modification Post-Modification Recorded Investment December 31, 2022 Commercial real estate $ 851 $ 815 $ 109 Residential mortgage 590 590 415 $ 1,441 $ 1,405 $ 524 (In thousands) Pre-Modification Post-Modification Recorded Investment December 31, 2021 Commercial and industrial $ 8 $ 8 $ 5 Commercial real estate 1,214 1,115 320 Commercial real estate - construction 40 40 22 Residential mortgage 647 645 472 $ 1,909 $ 1,808 $ 819 As of December 31, 2022 and 2021, 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 and 2021. Mid Penn entered into forbearance agreements on all loans currently classified as troubled debt restructurings and all of these agreements have resulted in additional principal repayment. The terms of these forbearance agreements vary whereby principal payments have been decreased, interest rates have been reduced and/or the loan will be repaid as collateral is sold. There were no loans modified in 2022 and 2021 that resulted in troubled debt restructurings. The following table summarizes the loans whose terms have been modified resulting in troubled debt restructurings during the year ended December 31, 2020: (In thousands) Number of Contracts Pre-Modification Post-Modification Recorded Investment December 31, 2020 Commercial real estate 1 $ 593 $ 593 $ 535 Residential mortgage 2 51 51 47 3 $ 644 $ 644 $ 582 The CARES Act, signed into law in March 2020, along with a joint agency statement issued by banking agencies, provided that short-term modifications made in response to COVID-19 to current and performing borrowers did not need to be accounted for as troubled debt restructurings. Depending upon the specific needs and circumstances affecting each borrower, the majority of these modifications ranged from deferrals of both principal and interest payments, with some borrowers reverting to interest-only payments. The majority of the deferrals were granted for a period of three months, but some as long as six months, depending upon management’s specific evaluation of each borrower’s circumstances. Interest continued to accrue on loans modified under the CARES Act during the deferral period. During 2020, Mid Penn had provided loan modifications meeting the CARES Act qualifications to over 1,000 borrowers. Mid Penn made no loan such modifications during 2021 and 2022. As of December 31, 2022, there was no principal balance of loans remaining in this CARES Act qualifying deferment status. As of December 31, 2021, the principal balance of loans remaining in this CARES Act qualifying deferment status totaled $3.6 million, or less than 1% of the total loan portfolio. Borrowers granted a CARES Act deferral have returned to regular payment status. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following is a summary of premises and equipment as of December 31: (In thousands) 2022 2021 Land $ 5,534 $ 5,546 Buildings 26,577 23,462 Furniture, fixtures, and equipment 20,950 16,639 Leasehold improvements 2,013 1,987 Capital expenditures in process 897 3,019 Total cost 55,971 50,653 Less accumulated depreciation (21,500) (17,421) Total premises and equipment $ 34,471 $ 33,232 Depreciation expense was $4.3 million in 2022, $3.3 million in 2021, and $3.2 million in 2020. During 2022, Mid Penn sold a branch which included the sale of $170 thousand and $2.0 million of furniture, fixtures and equipment and consumer loans, respectively, and the transfer of $21.1 million in deposits. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table summarizes the changes in goodwill: For the Years Ended ( In thousands ) 2022 2021 Goodwill balance, beginning of year $ 113,835 $ 62,840 Riverview Acquisition — 50,995 Riverview Acquisition measurement period adjustment 36 — Insurance acquisition 360 — Goodwill balance, end of year $ 114,231 $ 113,835 On December 31, 2022, Mid Penn purchased the assets of an independent insurance agency that serviced the Central Pennsylvania area in a business combination. Goodwill totaling $360 thousand and a customer list with a fair market value of $541 thousand were booked as a result of this business combination. The following table summarizes the changes in core deposit intangible. For the Years Ended ( In thousands ) 2022 2021 2020 Core deposit intangible balance, beginning of year $ 7,282 $ 4,311 $ 5,526 Riverview (adjustment) acquisition (705) 4,096 — Amortization of core deposit intangibles 1,613 1,125 1,215 Core deposit and other intangible balances, end of year $ 4,964 $ 7,282 $ 4,311 The following table shows the amortization expense for future periods: (In thousands) 2023 $ 1,208 2024 1,096 2025 882 2026 677 2027 474 2028-thereafter 627 Customer List Intangible As a result of the Riverview Acquisition, Mid Penn recorded a customer list intangible asset included in total intangible assets related to the wealth management customers assumed in the acquisition. This intangible is amortized as an expense over ten years using the sum of the years’ amortization method. The following table summarizes the changes in the customer list intangible during the years ended December 31: (In thousands) 2022 2021 Customer list intangible balance, beginning of year $ 2,127 $ — Riverview acquisition — 2,160 Insurance acquisition 541 — Amortization of customer list intangible 393 33 Customer list intangible, end of year $ 2,275 $ 2,127 The following table shows the amortization expense for future periods: (In thousands) 2023 $ 445 2024 399 2025 350 2026 301 2027 252 2028-thereafter 528 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Mid Penn has operating and finance leases for cert ain premises and equipment. Operating and finance lease ROU assets, as well as operating lease liabilities, are presented as separate line items on the Consolidated Balance Sheet, while finance lease liabilities are classified as a component of long-term debt. Supplemental consolidated balance sheet information for each of the lease classifications as of December 31 was as follows: 2022 2021 (Dollars in thousands) Operating Finance Operating Finance ROU $ 8,798 $ 2,907 $ 9,055 $ 3,087 Lease liability 9,725 3,290 11,363 3,380 Weighted average remaining lease term (in years) 6.30 16.17 7.03 17.17 Weighted average discount rate 3.25 % 3.81 % 3.12 % 3.81 % 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. Following is a summary of lease costs during the years ended December 31: (In thousands) 2022 2021 2020 Finance lease cost: Amortization of ROU asset $ 180 $ 180 $ 180 Interest expense on lease liability 127 130 133 Total finance lease cost 307 310 313 Operating lease cost 2,057 2,002 2,061 Short-term and equipment lease costs — 29 40 Sublease income (24) (27) (21) Total lease costs $ 2,340 $ 2,314 $ 2,393 The rental expense paid to related parties was $274 thousand for both 2022 and 2021 and $269 thousand in 2020. Supplemental cash flow information related to operating and finance leases for the years ended December 31 was as follows: (In thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 127 $ 130 Operating cash flows from operating leases 2,939 2,113 Financing cash flows from finance leases 90 87 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. December 31, 2022 (In thousands) Operating Leases Finance Lease Lease payments due: 2023 $ 2,170 $ 217 2024 2,143 252 2025 1,762 259 2026 1,367 260 2027 984 260 2028 and thereafter 2,313 3,213 Total lease payments 10,739 4,461 Less: imputed interest (1,014) (1,171) Present value of lease liabilities $ 9,725 $ 3,290 The future minimum payments to related parties are $274 thousand for both 2023 and 2024, $185 thousand for 2025, $178 thousand for both 2026 and 2027 and $3.1 million thereafter. There were no sale and leaseback transactions or leveraged leases as of December 31, 2022. There were no leases that had not commenced as of December 31, 2022. |
Leases | Leases Mid Penn has operating and finance leases for cert ain premises and equipment. Operating and finance lease ROU assets, as well as operating lease liabilities, are presented as separate line items on the Consolidated Balance Sheet, while finance lease liabilities are classified as a component of long-term debt. Supplemental consolidated balance sheet information for each of the lease classifications as of December 31 was as follows: 2022 2021 (Dollars in thousands) Operating Finance Operating Finance ROU $ 8,798 $ 2,907 $ 9,055 $ 3,087 Lease liability 9,725 3,290 11,363 3,380 Weighted average remaining lease term (in years) 6.30 16.17 7.03 17.17 Weighted average discount rate 3.25 % 3.81 % 3.12 % 3.81 % 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. Following is a summary of lease costs during the years ended December 31: (In thousands) 2022 2021 2020 Finance lease cost: Amortization of ROU asset $ 180 $ 180 $ 180 Interest expense on lease liability 127 130 133 Total finance lease cost 307 310 313 Operating lease cost 2,057 2,002 2,061 Short-term and equipment lease costs — 29 40 Sublease income (24) (27) (21) Total lease costs $ 2,340 $ 2,314 $ 2,393 The rental expense paid to related parties was $274 thousand for both 2022 and 2021 and $269 thousand in 2020. Supplemental cash flow information related to operating and finance leases for the years ended December 31 was as follows: (In thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 127 $ 130 Operating cash flows from operating leases 2,939 2,113 Financing cash flows from finance leases 90 87 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. December 31, 2022 (In thousands) Operating Leases Finance Lease Lease payments due: 2023 $ 2,170 $ 217 2024 2,143 252 2025 1,762 259 2026 1,367 260 2027 984 260 2028 and thereafter 2,313 3,213 Total lease payments 10,739 4,461 Less: imputed interest (1,014) (1,171) Present value of lease liabilities $ 9,725 $ 3,290 The future minimum payments to related parties are $274 thousand for both 2023 and 2024, $185 thousand for 2025, $178 thousand for both 2026 and 2027 and $3.1 million thereafter. There were no sale and leaseback transactions or leveraged leases as of December 31, 2022. There were no leases that had not commenced as of December 31, 2022. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits consisted of the following as of December 31: (Dollars in thousands) 2022 2021 Noninterest-bearing demand deposits $ 793,939 $ 850,438 Interest-bearing demand deposits 1,024,351 1,066,852 Money market 962,265 1,076,593 Savings 339,231 381,476 Total demand and savings 3,119,786 3,375,359 Time 658,545 626,657 Total deposits $ 3,778,331 $ 4,002,016 Overdrafts $ 401 $ 197 The scheduled maturities of time deposits at December 31, 2022 were as follows: Time Deposits (In thousands) Less than $250,000 $250,000 or more Maturing in 2023 $ 345,106 $ 93,287 Maturing in 2024 112,255 18,019 Maturing in 2025 50,641 6,930 Maturing in 2026 16,472 1,499 Maturing in 2027 9,429 569 Maturing thereafter 4,338 — $ 538,241 $ 120,304 Mid Penn had $100.0 million in brokered certificates of deposits as of December 31, 2022 and none as of December 31, 2021. As of December 31, 2022 and 2021, Mid Penn had $29.6 million an d $14.4 million of CDAR deposits, respectively. |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term Debt [Abstract] | |
Short-term Borrowings | Short-term Borrowings Total short-term borrowings were $102.6 million as of December 31, 2022 and consisted of FHLB overnight borrowings. There were no short-term borrowings as of December 31, 2021. Short-term borrowings generally consist of federal funds purchased and advances from the FHLB with an original maturity of less than a year. Federal funds purchased from correspondent banks mature in one business day and reprice daily based on the Federal Funds rate. Advances from the FHLB are collateralized by our investment in the common stock of the FHLB and by a blanket lien on selected loan receivables comprised principally of real estate secured loans within the Bank’s portfolio totaling $2.3 billion at December 31, 2022. The Bank had short-term borrowing capacity from the FHLB up to the Bank’s unused borrowing capacity of $1.3 billion (equal to $1.6 billion of maximum borrowing capacity less letter of credit and other FHLB advances outstanding) at December 31, 2022 upon satisfaction of any stock purchase requirements of the FHLB. No draws were outstanding on short-term FHLB or correspondent bank borrowings as of December 31, 2022 or 2021. The Bank also has unused overnight lines of credit with other correspondent banks amounting to $35.0 million at December 31, 2022. No draws have been made on these lines of credit and on December 31, 2022 and 2021, the balance was $0. As of December 31, 2021, the Bank paid all funding obtained from the Federal Reserve through the Paycheck Protection Program Liquidity Facility. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Maturities of Long-Term Debt [Abstract] | |
Long-term Debt | Long-term Debt The following table presents a summary of long-term debt as of December 31: (Dollars in thousands) December 31, 2022 December 31, 2021 FHLB fixed rate instruments: Due April 2022, 0.86343% $ — $ 70,000 Due March 2023, 0.7514% — 6,500 Due August 2026, 4.80% 1,088 1,353 Due February 2027, 6.71% 31 37 Total FHLB fixed rate instruments 1,119 77,890 Lease obligations included in long-term debt 3,290 3,380 Total long-term debt $ 4,409 $ 81,270 Mid Penn prepaid $6.5 million of FHLB fixed rate instruments during the year ended December 31, 2022 and made no prepayments of FHLB fixed rate instruments during the year ended December 31, 2021. As a member of the FHLB, the Bank can access a number of credit products which are utilized to provide liquidity. As of December 31, 2022, and 2021, the Bank had long-term debt outstanding in the amount of $4.4 million and $81.3 million, respectively, consisting of FHLB fixed rate instruments, and a finance lease liability. The FHLB fixed rate instruments are secured under the terms of a blanket collateral agreement with the FHLB consisting of FHLB stock and qualifying Mid Penn loan receivables, principally real estate secured loans. Mid Penn also obtains letters of credit from the FHLB to secure certain public fund deposits of municipality and school district customers who agree to use of the FHLB letters of credit. These FHLB letter of credit commitments totaled $189.0 million and $450.9 million as of December 31, 2022 and 2021. During the first quarter of 2019, Mid Penn entered into a lease agreement for one facility under a non-cancelable finance lease, which commenced March 1, 2019 and expires February 28, 2039 and is included in long-term debt on the Consolidated Balance Sheets. See "Note 7 - Leases", for more information related to Mid Penn’s finance lease obligation. Mid Penn made no prepayments of FHLB fixed rate instruments during the year ended December 31, 2022 or 2021. The aggregate principal amounts due on FHLB fixed rate instruments subsequent to December 31, 2022 are as follows: (In thousands) 2023 $ 284 2024 299 2025 313 2026 221 Thereafter 2 $ 1,119 |
Subordinated Debt and Trust Pre
Subordinated Debt and Trust Preferred Securities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Subordinated Debt and Trust Preferred Securities | Subordinated Debt and Trust Preferred Securities Subordinated Debt Issued December 2015 On December 9, 2015, Mid Penn sold $7.5 million of subordinated notes (the "2015 Notes") due in 2025. The 2015 Notes were redeemable in whole or in part, without premium or penalty, at any time on or after December 9, 2020, and prior to December 9, 2025. On August 8, 2022, Mid Penn redeemed all of the 2015 Notes. Given that the 2015 Notes were in the seventh year since issuance, 60% of the principal balance of the notes would have been treated as Tier 2 capital for regulatory capital purposes as of December 31, 2022. The 2015 Notes paid interest at a rate of 5.15% per year for the first five years outstanding, including the three months ended March, 31, 2020. Beginning January 1, 2021, the 2015 Notes bore interest at a floating rate based on the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance was at no time less than 4.00%. Interest was payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2016. Subordinated Debt Assumed November 2021 with the Riverview Acquisition On November 30, 2021, Mid Penn completed its acquisition of Riverview and assumed $25.0 million of Subordinated Notes (the "Riverview Notes"). In accordance with purchase accounting principles, the Riverview Notes were assigned a fair value premium of $2.3 million. The notes are treated as Tier 2 capital for regulatory reporting purposes. The Riverview Notes were entered into by Riverview on October 6, 2020 with certain qualified institutional buyers and accredited institutional investors. The Riverview Notes have a maturity date of October 15, 2030 and initially bear interest, payable semi-annually, at a fixed annual rate of 5.75% per annum until October 15, 2025. Commencing on that date, the interest rate applicable to the outstanding principal amount due will be reset quarterly to an interest rate per annum equal to the then current three-month secured overnight financing rate ("SOFR") plus 563 bp, payable quarterly until maturity. Mid Penn may redeem the Notes at par, in whole or in part, at its option, anytime beginning on October 15, 2025. Trust Preferred Securities Assumed November 2021 with the Riverview Acquisition In connection with the Riverview Acquisition, Mid Penn assumed the subordinated debentures that Riverview had assumed in its acquisition of CBT Financial Corp. ("CBT") on October 1, 2017 (the "CBT 2017 Notes"). In 2003 a trust formed by CBT which issued $5.2 million of floating rate trust preferred securities as part of a pooled offering of such securities. CBT was eligible to redeem the subordinated debentures, in whole but not in part, beginning in 2008 at a price of 100% of face value. The subordinated debentures were required to be redeemed no later than 2033. Similarly, in 2005, a trust formed by CBT issued $4.1 million of fixed rate trust preferred securities as part of a pooled offering of such securities (the "CBT 2015 Notes"). CBT was eligible to redeem the subordinated debentures, in whole but not in part, beginning in 2010 at a price of 100% of face value. In December 2022, Mid Penn redeemed all of the CBT 2017 Notes and CBT 2015 Notes. Subordinated Debt Issued December 2020 On December 22, 2020, Mid Penn entered into agreements for and sold, at 100% of their principal amount, an aggregate of $12.2 million of its Subordinated Notes due December 2030 (the "December 2020 Notes") on a private placement basis to accredited investors. The December 2020 Notes are treated as Tier 2 capital for regulatory capital purposes. The December 2020 Notes bear interest at a rate of 4.50% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the December 2020 Notes are floating will at no time be less than 4.50%. Interest is payable quarterly in arrears on March 31, June 30, September 30 and December 31, of each year, beginning on March 31, 2021. The December 2020 Notes will mature on December 31, 2030 and are redeemable, in whole or in part, without premium or penalty, on any interest payment date on or after December 31, 2025 and prior to December 31, 2030, subject to any required regulatory approvals. Additionally, if (i) all or any portion of the December 2020 Notes cease to be deemed Tier 2 Capital, (ii) interest on the December 2020 Notes fails to be deductible for United States federal income tax purposes or (iii) Mid Penn will be considered an "investment company," Mid Penn may redeem the December 2020 Notes, in whole but not in part, by giving 10 days’ notice to the holders of the December 2020 Notes. In the event of a redemption described in the previous sentence, Mid Penn will redeem the December 2020 Notes at 100% of the principal amount of the December 2020 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the December 2020 Notes may not accelerate the maturity of the December 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar event of Mid Penn or Mid Penn Bank, its principal banking subsidiary. Related parties held $750 thousand of the December 2020 Notes as of December 31, 2022 and 2021. Subordinated Debt Issued March 2020 On March 20, 2020, Mid Penn entered into agreements with accredited investors who purchased $15.0 million aggregate principal amount of Mid Penn Subordinated Notes due March 2030 (the "March 2020 Notes"). As a result of Mid Penn’s merger with Riverview on November 30, 2021, $6.9 million of the March 2020 Notes balance was redeemed as Riverview was a holder of the March 2020 Notes. The balance of March 2020 Notes outstanding as of December 31, 2021 was $8.1 million. The March 2020 Notes held at December 31, 2022 are treated as Tier 2 capital for regulatory capital purposes. The March 2020 Notes bear interest at a rate of 4.00% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the March 2020 Notes are floating will at no time be less than 4.25%. Interest is payable semi-annually in arrears on June 30 and December 30 of each year, beginning on June 30, 2020, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 30, June 30, September 30 and December 30. The March 2020 Notes will mature on March 30, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after March 30, 2025 and prior to March 30, 2030. Additionally, if all or any portion of the March 2020 Notes cease to be deemed Tier 2 Capital, Mid Penn may redeem, on any interest payment date, all or part of the 2020 Notes. In the event of a redemption described in the previous sentence, Mid Penn will redeem the March 2020 Notes at 100% of the principal amount of the March 2020 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the March 2020 Notes may not accelerate the maturity of the March 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar event of Mid Penn or Mid Penn Bank, its principal banking subsidiary. Related parties held $1.7 million of the March 2020 Notes as of December 31, 2022 and 2021. Subordinated Debt Issued December 2017 On December 19, 2017, Mid Penn entered into agreements with investors to purchase $10.0 million aggregate principal amount of its Subordinated Notes due 2028 (the "2017 Notes"). The 2017 Notes are treated as Tier 2 capital for regulatory capital purposes. The 2017 Notes bear interest at a rate of 5.25% per year for the first five years and then float at the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no times be less than 5.00%. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018, for the first five years after issuance and will be payable quarterly in arrears thereafter on January 15, April 15, July 15, and October 15. The 2017 Notes will mature on January 1, 2028 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 21, 2022, and prior to January 1, 2028. Additionally, Mid Penn may redeem the 2017 Notes in whole at any time, or in part from time to time, upon at least 30 days’ notice if: (i) a change or prospective change in law occurs that could prevent Mid Penn from deducting interest payable on the 2017 Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the 2017 Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) Mid Penn becomes required to register as an investment company under the Investment Company Act of 1940, as amended. In the event of a redemption described in the previous sentence, Mid Penn will redeem the 2017 Notes at 100% of the principal amount of the 2017 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As of December 31, 2022 and 2021, Mid Penn did not designate any derivative financial instruments as formal hedging relationships. Mid Penn’s free-standing derivative financial instruments are required to be carried at their fair value on the Consolidated Balance Sheets. Mortgage Banking Derivative Financial Instruments In connection with its mortgage banking activities, Mid Penn enters into commitments to originate certain fixed-rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, Mid Penn enters into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Loan-level Interest Rate Swaps Mid Penn enters into loan-level interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. Mid Penn simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of the offsetting customer and dealer counterparty swap agreements is that the customer pays a fixed rate of interest and Mid Penn receives a floating rate. Mid Penn’s loan-level interest rate swaps are considered derivatives but are not accounted for using hedge accounting. The notional amount and fair value of derivative financial instruments as of December 31: 2022 2021 (In thousands) Notional Amount Asset (Liability) Fair Value Notional Amount Asset (Liability) Fair Value Interest Rate Lock Commitments Positive Fair Values $ 274 $ 3 $ 13,437 $ 65 Negative Fair Values 5,252 (40) 2,670 (9) Forward Commitments Positive Fair Values 4,750 43 5,750 10 Negative Fair Values — — 6,500 (13) Interest Rate Swaps with Customers Positive Fair Values 16,650 164 79,814 853 Negative Fair Values 107,145 (11,533) 29,763 (955) Interest Rate Swaps with Counterparties Positive Fair Values 107,145 11,533 29,763 955 Negative Fair Values 16,650 (164) 79,814 (853) The following table presents derivative financial instruments and the amount of the net gains or losses recognized within other noninterest income (In thousands) 2022 2021 Interest Rate Lock Commitments $ (93) $ 56 Forward Commitments 46 32 Total $ (47) $ 88 The gross amounts of commercial loan swap derivatives, the amounts offset and the carrying values in the Consolidated Balance Sheets, and the collateral pledged to support such agreements are presented below as of December 31: (In thousands) 2022 2021 Interest Rate Swap Contracts - Commercial Loans: Gross amounts recognized $ 11,697 $ 102 Gross amounts offset 11,697 102 Net Amounts Presented in the Consolidated Balance Sheets — — Gross amounts not offset: Cash collateral (1) 1,600 1,600 Net Amounts $ 1,600 $ 1,600 (1) Included in cash and due from banks on the Consolidated Balance Sheet |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The following tables illustrate the assets measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets: 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: Interest rate swap agreements — 11,697 — 11,697 Mortgage banking derivative assets, net — 6 — 6 Total $ 430 $ 252,056 $ — $ 252,486 2021 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: Mortgage-backed U.S. government agencies $ — $ 49,480 $ — $ 49,480 State and political subdivision obligations — 3,914 — 3,914 Corporate debt securities — 9,468 — 9,468 Equity securities 500 — — 500 Loans held for sale — 11,514 — 11,514 Other assets: Interest rate swap agreements — 102 — 102 Mortgage banking derivative assets, net — 53 — 53 Total $ 500 $ 74,531 $ — $ 75,031 See "Note 1 - Summary of Significant Accounting Policies," for additional details on the fair value hierarchy. There were no transfers of assets between fair value Level 1 and Level 2 for the years ended December 31, 2022 or 2021. The valuation methodologies and assumptions used to estimate the fair value for the items in the preceding tables are as follows: Available for sale investment securities - The fair value of equity and debt securities classified as available for sale is determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather, relying on the securities’ relationship to other benchmark quoted prices. Equity securities - The fair value of equity securities with readily determinable fair values is recorded on the Consolidated Balance Sheet, with realized and unrealized gains and losses reported in other expense on the Consolidated Statements of Income. Loans held for sale - This category includes mortgage loans held for sale that are measured at fair value. Fair values as of December 31, 2022 were measured as the price that secondary market investors were offering for loans with similar characteristics. Loan-level interest rate swaps - are measured by alternative pricing sources with reasonable levels of price transparency in markets that are not active. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These markets do however have comparable, observable inputs in which an alternative pricing sources values these assets in order to arrive at a fair market value. These characteristics classify interest rate swap agreements as Level 2. Mortgage banking derivatives - represent the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors and the fair value of interest rate swaps. The fair values of the Corporation’s interest rate locks, forward commitments and interest rate swaps represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. These characteristics classify interest rate swap agreements as Level 2. See "Note 12 - Derivative Financial Instruments," for additional information. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, upon their acquisition or when there is evidence of impairment). The following table illustrates Level 3 financial instruments measured at fair value on a nonrecurring basis as of December 31: (In thousands) 2022 2021 Impaired loans (1) $ 938 $ 508 Foreclosed assets held for sale 43 — (1) Includes impaired loans reporting a specific allocation or that have been partially charged-off. Impaired loans - All performing troubled debt restructured loans and loans classified as non-accrual are deemed to be impaired, and all of these loans are considered collateral dependent; therefore, all of Mid Penn’s impaired loans, whether reporting a specific allowance allocation or not, are considered collateral dependent. Mid Penn utilized level 3 inputs such as independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal. As of December 31, 2022 and 2021, the range of the discount of the appraisals was 22% - 84% and 21% - 69%, respectively. The weighted average of the discount was 55% and 30%, as of December 31, 2022 and 2021, respectively. Foreclosed assets held for sale - Values are based on appraisals that consider the sales prices of property in the proximate vicinity. The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of December 31: 2022 Estimated Fair Value (In thousands) Carrying 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 Interest rate swap agreements 11,697 — 11,697 — 11,697 Mortgage banking derivative assets 46 — 46 — 46 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 Interest rate swap agreements 11,697 — 11,697 — 11,697 Mortgage banking derivative liabilities 40 — 40 — 40 2021 Estimated Fair Value (In thousands) Carrying Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 913,752 $ 913,752 $ — $ — $ 913,752 Available-for-sale investment securities 62,862 — 62,862 — 62,862 Held-to-maturity investment securities 329,257 — 330,626 — 330,626 Equity securities 500 500 — — 500 Loans held for sale 11,514 — 11,514 — 11,514 Net loans 3,089,799 — — 3,118,416 3,118,416 Restricted investment in bank stocks 9,134 9,134 — — 9,134 Accrued interest receivable 10,779 10,779 — — 10,779 Interest rate swap agreements 1,808 — 1,808 — 1,808 Mortgage banking derivative assets 75 — 75 — 75 Financial instruments - liabilities Deposits $ 4,002,016 $ — $ 4,046,217 $ — $ 4,046,217 Long-term debt (1) 77,890 — 77,455 — 77,455 Subordinated debt 74,274 — 74,553 — 74,553 Accrued interest payable 1,791 1,791 — — 1,791 Interest rate swap agreements 1,808 — 1,808 — 1,808 Mortgage banking derivative liabilities 22 — 22 — 22 (1) Long-term debt excludes finance lease obligations The Bank’s outstanding and unfunded credit commitments and financial standby letters of credit were deemed to have no significant fair value as of December 31, 2022 and 2021. |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Postretirement Benefit Plans | Postretirement Benefit Plans Mid Penn has an unfunded noncontributory defined benefit plan for directors, which provides defined benefits based on the respective director’s years of service, as well as a postretirement healthcare and life insurance benefit plan, which is noncontributory, covering certain full-time employees. Mid Penn also assumed noncontributory defined benefit pension plans as a result of the acquisitions of Scottdale on January 8, 2018 and Riverview on November 30, 2021. None of Mid Penn’s plans contained a promised interest crediting rate. Service costs related to plans benefiting Mid Penn employees are reported as a component of salaries and employee benefits on the Consolidated Statements of Income, while interest costs, expected return on plan assets, amortization (accretion) of prior service cost, and settlement gain are reported as a component of other income. Service costs, interest costs, and amortization of prior service costs related to plans benefiting Mid Penn’s nonemployee directors are reported as a component of director fees and benefits expense within the other expense line item on the Consolidated Statement of Income. The accrued benefit liability, related income statement impacts, and other significant aspects of the plans are detailed below. Life Insurance - Full-time employees who had at least ten years of service as of January 1, 2008 and retire with the Bank after age 55 and at least 20 years of service are eligible for term life insurance coverage. The insurance amount will be $50 thousand until age 65. After age 65, the insurance amount will decrease by $5 thousand per year until age 74. Thereafter, the insurance amount will be $5 thousand. The payment of the life insurance premium by the Corporation shall terminate at any time if the retired employee obtains other employment. Health Benefit Plan - Full-time employees who had at least 10 years of service as of January 1, 2008 and who retire at age 55 or later, after completion of at least 20 years of service, are eligible for medical benefits. Medical benefits are provided for up to five years after retirement. Employees who retired prior to December 31, 2015 may elect the least expensive single coverage in the employer’s group medical plan. If the retiree becomes eligible for Medicare during the five year duration of coverage, the Bank will pay, at its discretion, premiums for single 65-special coverage or similar supplemental coverage. For those employees who retired between September 18, 2015 and December 31, 2015, the Bank will only pay up to $5 thousand towards such medical coverage. Employees who retired after December 31, 2015 may not participate in the employer’s group medical plan. Instead, the Bank will reimburse the retiree for up to $5 thousand (grossed up by 36.79% as of December 31, 2022) in medical costs. The reimbursement shall terminate at any time during the five-year period if the retired employee obtains other employment or the retired employee dies. The following tables provide a reconciliation of the changes in the plan’s health and life insurance benefit obligations and fair value of plan assets for the years ended December 31, 2022 and 2021, and a statement of the funded status at December 31, 2022 and 2021. (In thousands) December 31, Change in benefit obligations: 2022 2021 Benefit obligations, January 1 $ 399 $ 342 Service cost 2 2 Interest cost 8 9 Change in experience (30) 73 Change in assumptions (67) (5) Benefit payments (15) (22) Benefit obligations, December 31 $ 297 $ 399 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 15 22 Benefit payments (15) (22) Fair value of plan assets, December 31 $ — $ — Funded status at year end $ (297) $ (399) Mid Penn has capped the benefit to future retirees under its post-retirement health benefit plan. Employees who had achieved ten years of service as of January 1, 2008 and subsequently retire after at least 20 years of service are eligible for reimbursement of major medical insurance premiums up to $5 thousand, if the employee has not yet reached age 65. Upon becoming eligible for Medicare, Mid Penn will reimburse up to $5 thousand in premiums for Medicare Advantage or a similar supplemental coverage. The maximum reimbursement period will not exceed five years regardless of retirement age and will end upon the participant obtaining other employment or the participant’s death. The amount recognized in other liabilities on the Consolidated Balance Sheets at December 31, is as follows: (In thousands) 2022 2021 Accrued benefit liability $ 297 $ 399 The amounts recognized in accumulated other comprehensive loss (income) as of December 31 consist of: (In thousands) 2022 2021 Net (gain) loss, pretax $ (18) $ 82 Net prior service cost, pretax 10 (15) The accumulated benefit obligation for health and life insurance plans was $297 thousand and $399 thousand at December 31, 2022 and 2021, respectively. The components of net periodic postretirement benefit (income) cost for 2022, 2021 and 2020 are as follows: (In thousands) 2022 2021 2020 Service cost $ 2 $ 2 $ 3 Interest cost 8 9 13 Amortization of prior service cost (24) (25) (25) Amortization of net loss 2 9 — Net periodic postretirement benefit income $ (12) $ (5) $ (9) Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31 are as follows: Weighted-average assumptions: 2022 2021 Discount rate 4.90 % 2.40 % Rate of compensation increase — 2.00 Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31 are as follows: Weighted-average assumptions: 2022 2021 2020 Discount rate 2.40 % 2.25 % 3.00 % Rate of compensation increase — 2.00 2.00 Assumed health care cost trend rates at December 31 are as follows: 2022 2021 2020 Health care cost trend rate assumed for next year 6.50 % 5.50 % 5.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.50 % 5.40 % 5.40 % Year that the rate reaches the ultimate trend rate 2026 2024 2024 The following table shows the estimated benefit payments for future periods: (In thousands) 2023 $ 31 2024 27 2025 32 2026 27 2027 25 2028-2032 141 Directors’ Retirement Plan - Mid Penn has an unfunded defined benefit retirement plan ("Director's Plan") for directors with benefits based on years of service. The following tables provide a reconciliation of the changes in the Director's Plan benefit obligations and fair value of plan assets for the years ended December 31, 2022 and 2021, and a statement of the status at December 31, 2022 and 2021. This Plan is unfunded. (In thousands) December 31, Change in benefit obligations: 2022 2021 Benefit obligations, January 1 $ 1,195 $ 1,142 Service cost 75 47 Interest cost 30 26 Actuarial loss 103 61 Change in assumptions (23) 25 Benefit payments (81) (106) Benefit obligations, December 31 $ 1,299 $ 1,195 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 81 106 Benefit payments (81) (106) Fair value of plan assets, $ — $ — Funded status at year end $ (1,299) $ (1,195) Amounts recognized in other liabilities on the Consolidated Balance Sheet at December 31 are as follows: (In thousands) 2022 2021 Accrued benefit liability $ 1,299 $ 1,195 Amounts recognized in accumulated other comprehensive loss (income) as of December 31 consist of: (In thousands) 2022 2021 Net prior service cost, pretax $ — $ — Net loss, pretax 248 189 The accumulated benefit obligation for the retirement plan was $1.3 million and $1.2 million at December 31, 2022 and 2021, respectively. The components of net periodic retirement cost for 2022, 2021 and 2020 are as follows: (In thousands) 2022 2021 2020 Service cost $ 75 $ 47 $ 49 Interest cost 30 26 31 Amortization of net loss 20 7 — Net periodic retirement cost $ 125 $ 80 $ 80 Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31 are as follows: Weighted-average assumptions: 2022 2021 Discount rate 4.90 % 2.40 % Change in consumer price index 7.00 1.40 Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31 are as follows: Weighted-average assumptions: 2022 2021 2020 Discount rate 4.90 % 2.40 % 2.25 % Change in consumer price index 7.00 1.40 1.00 The following table shows the estimated benefit payments for future periods: (In thousands) 2023 $ 110 2024 104 2025 108 2026 106 2027 94 2028-2032 485 The Bank is the owner and beneficiary of insurance policies on the lives of certain officers and directors, which informally fund the retirement plan obligation. The aggregate cash surrender value of these policies was $4.1 million at both December 31, 2022 and 2021. Scottdale Defined Benefit Pension Plan - As a result of the acquisition of Scottdale on January 8, 2018, Mid Penn has assumed a noncontributory defined benefit pension plan ("Scottdale Plan") covering certain former employees of Scottdale. After the acquisition, Mid Penn does not allow for any further participants to join the Plan. Mid Penn’s policy is to fund pension benefits as accrued. The Scottdale Plan’s assets are managed by the trust department of the Bank and were primarily invested in corporate equity securities at the time of acquisition but have since been diversified into a more conservative investment profile, including fixed income debt securities. The investment objective of the plan is "Balanced" to provide relatively stable growth from assets offset by a moderate level of income with target portfolio allocations of up to 20% cash, 30-50% fixed income securities, and 40-60% equity securities. The valuation of the plan’s assets is subject to market fluctuations. For the year ended December 31, 2021, Mid Penn recognized $47 thousand of settlement gains, as a result of certain lump sum payouts to participants of the Scottdale Plan. The settlement gains were recorded in noninterest income as a component of other income The following tables provide a reconciliation of the changes in the Scottdale Plan’s benefit obligations and fair value of plan assets for the year ended December 31, 2022 and 2021, and a statement of the status at December 31, 2022 and 2021: (In thousands) December 31, Change in benefit obligations: 2022 2021 Benefit obligations, January 1 $ 4,844 $ 5,401 Service cost 69 83 Interest cost 144 134 Actuarial gain (1,096) (309) Settlement payments — (378) Benefit payments (156) (87) Benefit obligations, December 31 $ 3,805 $ 4,844 Change in fair value of plan assets: Fair value of plan assets, January 1 $ 5,302 $ 4,939 Return on plan assets (385) 582 Employer contributions — 285 Benefit payments (156) (87) Administrative expenses (39) (39) Settlement payments — (378) Fair value of plan assets, December 31 $ 4,722 $ 5,302 Funded status at year end $ 917 $ 458 Amounts recognized on the Consolidated Balance Sheets at December 31 are as follows: (In thousands) 2022 2021 Accrued pension benefit asset $ (917) $ (458) Amounts recognized in accumulated other comprehensive loss consist of the following as of December 31: (In thousands) 2022 2021 Unrecognized actuarial gain $ 1,030 $ 602 The accumulated benefit obligation for the retirement plan was $3.8 million and $4.8 million at December 31, 2022 and 2021, respectively. The components of net periodic retirement cost for December 31 are as follows: (In thousands) 2022 2021 Service cost $ 69 $ 83 Interest cost 144 134 Expected return on plan assets 237 (227) Recognized net actuarial gain (7) — Net periodic retirement income $ (31) $ (10) Assumptions used in the measurement of Mid Penn’s benefit obligations and net periodic pension costs at December 31 are as follows: Weighted-average assumptions: 2022 2021 Discount rate 5.25 % 3.00 % Expected long-term return on plan assets 4.50 4.50 Rate of compensation increases 2.50 2.50 The following table presents a summary of the Scottdale Plan’s assets at fair value and the weighted-average asset allocations by investment category as of December 31: Estimated Fair Value Percentage of Total Assets Estimated Fair Value Percentage of Total Assets (Dollars in thousands) 2022 2021 Cash and cash equivalents $ 108 2.3 % $ 670 12.6 % Common stock 2,773 58.7 3,221 60.8 Corporate bonds 1,841 39.0 1,411 26.6 $ 4,722 100.0 % $ 5,302 100.0 % The description of the valuation methodologies used for assets measured at fair value is disclosed below. Common Stocks Valued at the closing price reported on the active market on which the individual securities are traded and therefore would be categorized as Level 1 assets under the fair value hierarchy. Corporate Bonds Valued using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather relying on the securities’ relationship to other benchmark quoted prices and therefore would be categorized as Level 2 assets under the fair value hierarchy. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table shows the estimated benefit payments for future periods. (In thousands) 2023 $ 91 2024 202 2025 251 2026 248 2027 277 2028-2032 1,555 Riverview Defined Benefit Plan - As a result of the Riverview Acquisition on November 30, 2021, Mid Penn has assumed noncontributory defined benefit pension plans ("Riverview Plans") covering certain former employees of Riverview (or its predecessor-in-interest) as follows: Pursuant to the consolidation with Union Bancorp, Inc. ("Union") effective November 1, 2013, Riverview assumed Union’s noncontributory defined benefit pension plan, which substantially covered all Union employees. The plan benefits were based on average salary and years of service. Union elected to freeze all benefits earned under the plan effective January 1, 2007. Riverview also assumed responsibility of Citizens National Bank of Meyersdale’s ("Citizens") noncontributory defined benefit pension plan effective as of the December 31, 2015 merger date. The plan substantially covered all Citizens employees, and the plan benefits were based on average salary and years of service. Citizens elected to freeze all benefits earned under the plan effective January 1, 2013. As a result of a merger effective October 1, 2017, Riverview assumed responsibility of CBT Financial Corp’s ("CBT") postretirement benefits plan, which is an unfunded postretirement benefit plan covering health insurance costs and post-retirement life insurance benefits for certain retirees. Subsequent to the Riverview Acquisition, Mid Penn disallowed any further participants to join the Riverview Plans. Mid Penn’s policy is to fund pension and post-retirement benefits as accrued. The Riverview Plans’ assets are managed by a third party and were primarily invested in a combination of cash and cash equivalents, equity securities and fixed income securities at the time of acquisition. The valuation of the Riverview Plans’ assets is subject to market fluctuations. The following tables provide a reconciliation of the changes in the Riverview Plans' benefit obligations and fair value of plan assets for year ended December 31, 2022 and the one-month period beginning with the November 30, 2021 acquisition date and ended December 31, 2021, and a statement of the status at December 31, 2022 and 2021. (In thousands) Change in benefit obligations: 2022 2021 Benefit obligations, January 1 $ 8,165 $ 8,278 Interest cost 223 19 Actuarial gain (1,407) (86) Benefit payments (557) (46) Benefit obligations, December 31 $ 6,424 $ 8,165 Change in fair value of plan assets: Fair value of plan assets, January 1, $ 8,984 $ 8,894 Return on plan assets (1,709) 136 Contributions 2 — Benefit payments (557) (46) Fair value of plan assets, December 31 $ 6,720 $ 8,984 Funded status at year end $ 296 $ 819 Amounts recognized in other liabilities on the Consolidated Balance Sheets as of December 31 are as follows: (In thousands) 2022 2021 Accrued pension benefit asset $ (296) $ (819) As of December 31, 2022 amounts related to the Riverview Plans that have been recognized in accumulated other comprehensive loss but not yet recognized as a component of net periodic pension cost are as follows: (In thousands) 2022 2021 Unrecognized actuarial (loss) gain $ (824) $ 176 The components of net periodic pension and postretirement benefit cost for the year ended December 31, 2022 and for November 30, 2021 to December 31, 2021 are as follows: (In thousands) 2022 2021 Interest cost $ 223 $ 19 Expected return on plan assets (522) (46) Net periodic pension benefit $ (299) $ (27) (In thousands) 2022 2021 Service credit $ — $ — Interest cost 1 — Unrecognized gain (1) $ — Net periodic postretirement benefit $ — $ — The accumulated benefit obligation was $6.4 million and $8.2 million at December 31, 2022 and 2021, respectively, for the Riverview Plans. Weighted average assumptions used in the measurement of Mid Penn’s benefit obligations and net periodic pension costs at December 31, 2022 and 2021 are as follows: Pension Benefits Postretirement 2022 Union Citizens Citizens Discount rate 2.83 % 2.83 % 3.00 % Expected long-term return on plan assets 6.00 6.00 n/a 2021 Discount rate 2.75 % 2.75 % 2.75 % Expected long-term return on plan assets 6.25 6.25 n/a The following summarizes the actuarial assumptions used for the Riverview Plans: For the pension plan, the selected long-term rate of return on plan assets was primarily based on the asset allocation of the plan’s assets. Analysis of the historic returns on these asset classes and projections of expected future returns were considered in setting the long-term rate of return. The benefit offered under the postretirement benefits plan is fixed; therefore, the accumulated postretirement benefit obligation is not impacted by health care cost trends or the rate of compensation increase. The following table presents a summary of the Riverview Plan’s assets at fair value and the weighted-average asset allocations by investment category as of December 31: Estimated Fair Value Percentage of Total Assets Estimated Fair Value Percentage of Total Assets Weighted-average asset allocations: 2022 2021 Cash and cash equivalents $ 69 1.0 % $ 133 1.5 % Mutual fund - equity 2,411 35.9 3,310 36.8 Mutual fund / EFTs - fixed income 3,906 58.1 5,155 57.4 Common / collective trusts equity 334 5.0 386 4.3 $ 6,720 100 % $ 8,984 100 % The valuation used is based on quoted market prices provided by an independent third party. The fair values of mutual fund investments are considered Level 1 assess in the fair value hierarchy and the collective trusts equity are considered Level 2 assets. The following table shows the estimated benefit payments for future periods. (In thousands) Pension Benefits Postretirement 2023 $ 551 $ 3 2024 536 3 2025 517 3 2026 504 3 2027 488 2 2028-2032 2,293 9 |
Other Benefit Plans
Other Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Other Benefit Plans | Other Benefit Plans Mid Penn maintains several benefit plans for both current and former employees of the Corporation. Liabilities related to the plans are recorded in other liabilities on the balance sheet, and aggregate cash surrender values assets related to the life insurance plans are recorded in the cash surrender value of life insurance line item on the balance sheet. Significant aspects of the plans are detailed below. Defined-Contribution 401(k) Plan - The Bank has a 401(k) plan that covers substantially all employees. The plan allows employees to contribute a portion of their salaries and wages to the plan and provides for Mid Penn to match a portion of employee-elected salary deferrals, subject to certain percentage maximums of their salaries and wages. The Corporation’s contribution to the 401(k) Plan was $1.4 million, $1.1 million, and $913 thousand for the years ending December 31, 2022, 2021, and 2020, respectively and is included as a component of salaries and benefits expense in the Consolidated Statements of Income. The plan also includes a funded contributory profit sharing provision for substantially all employees which is funded annually when applicable. The Corporation did not make a profit sharing contribution to the plan in 2022, 2021, or 2020. During 2021, Mid Penn assumed the 401(k) plan of Riverview. Riverview maintained a contributory 401(k) retirement plan for all eligible employees. The plan was frozen and all contributions were suspended subsequent to the merger. During the year ended December 31, 2022, the Riverview plan was terminated, and all remaining assets were either transferred to the Mid Penn 401(k) Plan or distributed to former employee participants. Deferred Compensation Plan - Mid Penn has a directors’ deferred compensation plan, which allows directors to defer receipt of director fees for a specified period in order to provide future retirement income. At December 31, 2022 and 2021, the Corporation accrued a liability of $1.9 million and $1.6 million, respectively, for this plan. The expense related to the plan was $64 thousand, $35 thousand and $42 thousand in 2022, 2021 and 2020, respectively, and is included as a component of other expense in the Consolidated Statements of Income. Supplemental Executive Retirement Plan - On September 6, 2022, Mid Penn entered into new or amended and restated supplemental executive retirement plan agreements ("SERPs") with five named executive officers and three other members of the Bank’s executive management team. Each SERP provides for the monthly payment of a fixed cash benefit over a period of 15 years, commencing on the first day of the month following the Executive’s separation from service: (i) occurring on or after reaching normal retirement age (age 70); (ii) due to disability; (iii) due to death; or (iv) within two years following a change in control of the Bank. The annual benefit vests over a term of four Split Dollar Life Insurance Arrangements - At December 31, 2022 and 2021, the Bank had Split Dollar Life Insurance arrangements with two former executives for which the aggregate collateral assignment and cash surrender values are approximately $1.4 million for December 31, 2022 and 2021. Mid Penn acquired Phoenix’s Split Dollar Life Insurance arrangements in 2015 on select employees, which had aggregate cash surrender values of $4.3 million and $4.2 million at December 31, 2022 and 2021. Mid Penn acquired First Priority’s Split Dollar Life Insurance arrangements in 2018 on select employees, which had aggregate cash surrender values of $3.6 million at both December 31, 2022 and 2021. Mid Penn acquired Riverview’s Split Dollar Life Insurance arrangements in 2021 on select employees, which had aggregate cash surrender values of $2.0 million at both December 31, 2022 and 2021. Rabbi Trust - As a result of the November 30, 2021 acquisition of Riverview, Mid Penn assumed certain benefit plan liabilities related to compensation arrangements totaling $7.7 million within other liabilities on the Consolidated Balance Sheets, including certain executive non-qualified retirement benefits, deferred compensation plans, and executive employment and separation agreements associated with Riverview. The details of the compensation arrangements for the years ended December 31 include: (In thousands) Fully Funded Gross Amounts Compensation Arrangements 2022 2021 Supplemental executive retirement agreements $ 1,316 $ 1,916 Executive deferred compensation agreement 1,638 1,908 Director deferred fee agreement 41 116 Executive employment agreements 1,502 3,349 Separation agreement 194 419 Total compensation agreements $ 4,691 $ 7,708 The obligations are fully funded through a Rabbi Trust having a cash balance of $4.9 million and $7.7 million within other assets on the Consolidated Balance Sheets as of December 31, 2022 and 2021 to provide a source of funds in satisfying the obligations under the respective compensation arrangements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Significant components of the Corporation’s net deferred tax asset at December 31, 2022 and 2021 are shown below. (In thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 3,981 $ 3,065 Loan fees 898 1,409 Deferred compensation 1,115 2,661 Benefit plans 56 98 Unrealized loss on securities 5,137 63 Lease adjustments 193 485 Business combination adjustments 2,066 4,067 Acquired NOL, Section 1231, and charitable contribution carryforwards 686 745 Rabbi Trust 985 — Riverview AMT credits 771 777 Riverview subordinated debt fair value adjustment 353 — Software renewal costs 420 525 Other 892 513 17,553 14,408 Deferred tax liabilities: Depreciation (1,175) (843) Bond accretion (97) (39) Goodwill and intangibles (362) (364) Prepaid expenses (797) (706) Business combination adjustments (398) (547) Benefit plans (1,049) (1,130) (3,878) (3,629) Deferred tax asset, net $ 13,675 $ 10,779 In assessing the Corporation’s ability to realize deferred federal tax assets, management considers whether it is more likely than not some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and prudent, feasible and permissible as well as available tax planning strategies in making this assessment. At December 31, 2022, based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that Mid Penn will realize the benefits of these deferred tax assets and has no valuation allowances recorded against any components of its deferred tax asset, including the carryforward balances related to net operating losses ("NOL"), Section 1231 losses, and charitable contribution carryforwards. At December 31, 2022, Mid Penn had NOL carryforwards of $577 thousand resulting from the November 30, 2021 acquisition of Riverview. These NOLs were assumed by Riverview in a previous acquisition and were generated during the tax years ended December 31, 2013, 2014, and 2015 and begin to expire in 2032. The Coronavirus Aid, Relief, and Economic Security (" CARES") Act, signed into law on March 27, 2020 to mitigate the economic effects of COVID-19, implemented a five-year carryback period for NOLs generated in tax years beginning in 2018, 2019, or 2020. As a result of this CARES Act provision, during the year ended December 31, 2021, Mid Penn filed the required federal tax returns to carryback NOLs to the 2017 tax year, comprised of (i) $1.2 million of NOLs generated in 2018 and acquired from Scottdale, and (ii) $1.2 million of NOLs generated in 2018 and acquired from First Priority. The carryback of these NOLs to the 2017 tax year when the tax rate was 34% (versus 21% in 2018) generated a federal tax benefit of $318 thousand recorded in the provision for income taxes on the Consolidated Statements of Income for the year ended December 31, 2020. The remaining NOL balance of $119 thousand at December 31, 2020 was generated in the 2012 tax year, was acquired from First Priority, and expires in 2032. Mid Penn is limited to a deduction of the lesser of the available NOL carryforward or 80% of pre-NOL taxable income in a single tax year as set forth in the TCJA. At December 31, 2022, Mid Penn had $43 thousand of charitable contribution carryforwards which were acquired from Riverview, while at December 31, 2021, Mid Penn had $57 thousand charitable contribution carryforwards. During the years ended December 31, 2022, 2021 and 2020, Mid Penn generated sufficient taxable income to utilize all charitable contribution carryforwards. Mid Penn expects to generate sufficient taxable income to utilize all charitable contribution carryforwards in the future. The CARES Act also updated Alternative Minimum Tax ("AMT") credit rules to permit AMT credit to be 100% refundable in the 2018 tax year. As a result, during the year ended December 31, 2020, Mid Penn filed the required federal tax returns to request a full refund of the AMT credits that had been acquired from First Priority and Scottdale. During 2021, and as a result of the Riverview Acquisition, Mid Penn assumed $771 thousand of AMT credits to be used on future tax returns. Acquired Section 1231 losses totaling $314 thousand were recorded as a result of filing the final First Priority return in 2019 and expired in 2022. The annual usage of acquired NOL, charitable contribution carryforwards, and Section 1231 losses is limited by IRS Section 382 regulations. These limitations are calculated separately for each acquisition as the federal long-term tax-exempt rate at the date of acquisition multiplied by the valuation of the selling company as calculated in accordance with GAAP. As a result, the usage of acquired NOLs, charitable contribution carryforwards, AMT carryforwards, and Section 1231 losses to offset taxable income related to the Riverview Acquisition is limited to $2.0 million per year and $1.9 million per year for the First Priority Acquisition. All contribution carryforwards related to the Scottdale Acquisition were utilized as of December 31, 2022. The provision for income taxes consists of the following: (In thousands) 2022 2021 2020 Current tax provision Federal $ 10,212 $ 6,178 $ 6,340 State 67 70 157 Total current tax provision $ 10,279 $ 6,248 $ 6,497 Deferred tax expense (benefit) Federal $ 2,262 $ 484 $ (1,367) State — — — Total deferred tax expense (benefit) 2,262 484 (1,367) Total provision for income taxes $ 12,541 $ 6,732 $ 5,130 A reconciliation of the federal income tax provision at the statutory rate of 21% for 2022, 2021 and 2020 to Mid Penn's actual federal income tax provision at its effective rate is as follows: (In thousands) 2022 2021 2020 Provision at the expected statutory rate $ 14,143 $ 7,571 $ 6,581 Low income housing partnership tax credits (929) (853) (861) Effect of tax-exempt income (614) (477) (499) Effect of investment in life insurance (203) (75) (63) Nondeductible merger and acquisition expense 60 364 — State income taxes, net of federal tax benefit 53 55 124 Nondeductible interest 20 14 26 Other items 11 133 (178) Provision for income taxes $ 12,541 $ 6,732 $ 5,130 Mid Penn has no unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. Mid Penn does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No amounts for interest and penalties were recorded in income tax expense in the Consolidated Statement of Income for the years ended December 31, 2022, 2021, or 2020. There were no amounts accrued for interest and penalties at December 31, 2022 or 2021. Mid Penn and its subsidiaries are subject to U.S. federal income tax and income tax for the states of Pennsylvania, New Jersey, and Maryland. With limited exceptions, Mid Penn is no longer subject to examination by taxing authorities for years before 2017. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Matters | Regulatory Matters The Corporation and the Bank are subject to regulatory capital requirements administered by banking regulators. Failure to meet minimum capital requirements can trigger certain mandatory, and possibly additional discretionary, actions by the regulators that if, undertaken, could have a direct material effect on the Corporation's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory account practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As of December 31, 2022 and 2021, the Corporation and the Bank met all capital adequacy requirements and the Bank was considered "well-capitalized". However, future changes in regulations could increase capital requirements and may have an adverse effect on capital resources. Minimum regulatory capital requirements established by Basel III rules require the Corporation and the Bank to: • Meet a minimum Common Equity Tier I capital ratio of 4.5% of risk-weighted assets; • Meet a minimum Tier I capital ratio of 6.0% of risk-weighted assets; • Meet a minimum Total capital ratio of 8.0% of risk-weighted assets; • Meet a minimum Tier I leverage capital ratio of 4.0% of average assets; • Maintain a "capital conservation buffer" of 2.5% above the minimum risk-based capital requirements, which must be maintained to avoid restrictions on capital distributions and certain discretionary bonuses; and • Comply with the definition of capital to improve the ability of regulatory capital instruments to absorb losses. The Basel III Rules use a standardized approach for risk weightings. The rules provide that the failure to maintain the "capital conservation buffer" results in restrictions on capital distributions and discretionary cash bonus payments to executive officers. As a result, under the Basel III Rules, if the Bank fails to maintain the required minimum capital conservation buffer, the Corporation will be subject to limits, and possibly prohibitions, on its ability to obtain capital distributions from the Bank. If the Corporation does not receive sufficient cash dividends from the Bank, it may not have sufficient funds to pay dividends on its common stock, service its debt obligations or repurchase its common stock. Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans, or advances. The amount of dividends that may be paid from the Bank to the Corporation in any calendar year is limited to the Bank’s current year’s net profits, combined with the retained net profits of the preceding two years. For the year ended December 31, 2022, $60.3 million of undistributed earnings of the Bank, included in the consolidated shareholders’ equity balance, was available for distribution to the Corporation as dividends without prior regulatory approval, subject to regulatory capital requirements below. The following tables present the regulatory capital levels, leverage ratios, and risk-based capital ratios as of December 31: Actual Minimum for To Be Well-Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Mid Penn Bancorp, Inc. 2022 Tier 1 Capital (to Average Assets) $ 410,494 9.6 % $ 171,500 4.0 % N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 410,494 11.2 257,130 7.0 N/A N/A Tier 1 Capital (to Risk Weighted Assets) 410,494 11.2 312,229 8.5 N/A N/A Total Capital (to Risk Weighted Assets) 484,477 13.2 385,695 10.5 N/A N/A Mid Penn Bank 2022 Tier 1 Capital (to Average Assets) $ 463,964 10.8 % $ 171,398 4.0 % $ 214,248 5.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 463,964 12.6 256,895 7.0 238,545 6.5 Tier 1 Capital (to Risk Weighted Assets) 463,964 12.6 311,943 8.5 293,594 8.0 Total Capital (to Risk Weighted Assets) 483,006 13.2 385,342 10.5 366,992 10.0 Mid Penn Bancorp, Inc. 2021 Tier 1 Capital (to Average Assets) $ 374,368 8.1 % $ 185,764 4.0 % N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 365,084 11.7 217,579 7.0 N/A N/A Tier 1 Capital (to Risk Weighted Assets) 374,368 12.0 264,203 8.5 N/A N/A Total Capital (to Risk Weighted Assets) 452,527 14.6 326,369 10.5 N/A N/A Mid Penn Bank 2021 Tier 1 Capital (to Average Assets) $ 398,773 8.6 % $ 185,721 4.0 % $ 232,151 5.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 398,773 12.8 217,446 7.0 201,914 6.5 Tier 1 Capital (to Risk Weighted Assets) 398,773 12.8 264,041 8.5 248,510 8.0 Total Capital (to Risk Weighted Assets) 413,442 13.3 326,169 10.5 $ 310,637 10.0 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments - During the second quarter of 2020 Mid Penn’s Board of Directors approved Mid Penn Bank to enter into a commitment to purchase a limited partnership interest in a low-income housing project to construct thirty-nine apartments and common amenities in Cumberland County, Pennsylvania. All of the units are expected to qualify for Federal Low-Income Housing Tax Credits ("LIHTCs") as provided for in Section 42 of the Internal Revenue Code of 1986, as amended. Mid Penn’s limited partner capital contribution commitment is expected to be $10.8 million which will be paid in installments over the course of construction of the low-income housing facilities. The investment in the limited partnership will be reported in other assets on the balance sheet and amortized over a ten-year period. The project has been conditionally awarded $1.2 million in annual LIHTCs by the Pennsylvania Housing Finance Agency, with a total anticipated LIHTC amount of $12.0 million to be received by Mid Penn over the ten-year amortization period. Mid Penn’s commitment to purchase the limited partnership interest is conditional upon the review and approval of all closing documents, an opinion letter for tax counsel to the Partnership that the project qualifies for the LIHTCs and review and approval by Mid Penn of other documents it may deem necessary. As a result of the Riverview Acquisition on November 30, 2021, Mid Penn assumed a commitment to purchase a limited partnership interest in a low-income housing project to preserve and rehabilitate three buildings consisting of 17 apartments and two commercial shops in Tamaqua, Schuylkill County. All the units are expected to qualify for Federal Low-Income Housing Tax Credits ("LIHTCs") as provided for in Section 42 of the Internal Revenue Code of 1986, as amended. Mid Penn’s limited partner capital contribution commitment is expected to be $4.4 million which will be paid in installments over the course of construction of the low-income housing facilities. The investment in the limited partnership will be reported in other assets on the balance sheet and amortized over a ten-year period. Additionally, the agreement commits Mid Penn to a construction loan in the maximum principal amount of $3.5 million which will bear interest at 5.5% annum with a term of twenty-four months. The project has been conditionally awarded $484 thousand in annual LIHTCs by the Pennsylvania Housing Finance Agency, with a total anticipated LIHTC amount of $4.8 million to be received by Mid Penn over the ten-year amortization period. Mid Penn’s commitment to purchase the limited partnership interest is conditional upon the review and approval of all closing documents, an opinion letter for tax counsel to the Partnership that the project qualifies for the LIHTCs and review and approval by Mid Penn of other documents it may deem necessary. Contingencies - As of December 31, 2022 and 2021, Mid Penn received a total of $3.8 million and $38.9 million, respectively, of nonrefundable loan processing fees related to the loans disbursed as a result of Mid Penn’s participation in the SBA’s Paycheck Protection Program ("PPP"). These fees, and any offsetting loan origination costs, were deferred in accordance with FASB ASC 310-20, Receivables—Nonrefundable Fees and Other Costs, and have since been and will continue to be amortized to interest and fees on loans and leases on the Consolidated Statements of Income over the life of the respective loans. As of December 31, 2022, Mid Penn is not aware of any PPP loans outstanding, or for which fees have been received from the SBA, that have been cancelled, terminated, or repaid due to a borrower being determined to be ineligible for a PPP loan. Litigation - Mid Penn is subject to lawsuits and claims arising out of its normal conduct of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition of Mid Penn. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted EPS: (In thousands, except per share data) 2022 2021 2020 Net income $ 54,806 $ 29,319 $ 26,209 Weighted average shares outstanding (basic) 15,912,877 10,806,009 8,439,427 Effect of dilutive unvested restricted stock grants 21,758 13,570 3,665 Weighted average shares outstanding (diluted) 15,934,635 10,819,579 8,443,092 Basic earnings per common share $ 3.44 $ 2.71 $ 3.11 Diluted earnings per common share 3.44 2.71 3.10 There were no antidilutive shares at December 31, 2022, 2021, and 2020. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |
Stockholders' Equity | Shareholders' Equity Accumulated Other Comprehensive Loss (Income) The components of accumulated other comprehensive loss (income), net of taxes, are as follows: (I n thousands ) Unrealized Loss on Defined Benefit Total Balance at December 31, 2019 $ (128) $ 471 $ 343 OCI before reclassifications 494 (503) (9) Amounts reclassified from AOCI (369) (22) (391) Balance - December 31, 2020 (3) (54) (57) OCI before reclassifications (190) 511 321 Amounts reclassified from AOCI (62) (44) (106) Balance - December 31, 2021 (255) 413 158 OCI before reclassifications (19,072) (294) (19,366) Amounts reclassified from AOCI — (8) (8) Balance - December 31, 2022 $ (19,327) $ 111 $ (19,216) Treasury Stock Repurchase Program Mid Penn adopted a treasury stock repurchase program ("Repurchase Program") and it was extended through March 19, 2023 by Mid Penn’s Board of Directors on March 23, 2022. The Repurchase Program authorized the repurchase of up to $15.0 million of Mid Penn’s outstanding common stock, which represented approximately 3.5% of the issued shares based on Mid Penn’s closing stock price and shares issued as of March 31, 2022. Under the Repurchase Program, Mid Penn may conduct repurchases of its common stock through open market transactions (which may be by means of a trading plan adopted under SEC Rule 10b5-1) or in privately negotiated transactions. Repurchases under the Repurchase Program are made at the discretion of management and are subject to market conditions and other factors. There is no guarantee as to the exact number of shares that Mid Penn may repurchase. The Repurchase Program may be modified, suspended or terminated at any time, in Mid Penn’s discretion, based upon a number of factors, including liquidity, market conditions, the availability of alternative investment opportunities and other factors Mid Penn deems appropriate. The Repurchase Program does not obligate Mid Penn to repurchase any shares. Mid Penn repurchased 109,891 shares during 2022 at an average price per share of $26.91 under its share repurchase program. As of December 31, 2022, Mid Penn had repurchased 208,343 shares of common stock at an average price of $23.42 per share under the Repurchase Program. The Repurchase Program had $10.1 million remaining available for repurchase as of December 31, 2022. Dividend Reinvestment Plan Under Mid Penn’s amended and restated dividend reinvestment plan ("DRIP"), 300,000 shares of Mid Penn’s authorized but unissued common stock are reserved for issuance. The DRIP also allows for voluntary cash payments, within specified limits, to be used for the purchase of additional shares. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The following table presents compensation expense and related tax benefits for restricted stock awards recognized on the Consolidated Statements of Income: (In thousands) 2022 2021 2020 Compensation expense $ 1,142 $ 696 $ 414 Tax benefit (240) (146) (87) Net income effect $ 902 $ 550 $ 327 The tax benefits were calculated using Mid Penn's federal statutory tax rate of 21%. Mid Penn may grant awards not exceeding, in the aggregate, 200,000 shares of common stock under the 2014 Restricted Stock Plan, which was amended in 2020. The Plan was established for employees and directors of Mid Penn and the Bank, selected by the Compensation Committee of the Board of Directors, to align the interest of plan participants with those of Mid Penn’s shareholders. Share-based compensation expense relating to restricted stock is calculated using grant date fair value and is recognized on a straight-line basis over the vesting periods of the awards. Generally, restricted shares granted to employees vest in equal amounts on the anniversary of the grant date over a 4-year vesting period, and the expense is a component of salaries and benefits expense on the Consolidated Statements of Income. Restricted shares granted to directors have a 12-month vesting period, and the expense is a component of directors’ fees and benefits within the other expense line item on the Consolidated Statements of Income. The following table presents information regarding the non-vested restricted stock for the year ended December 31, 2022: Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2022 47,322 $ 26.45 Vested (25,175) 27.30 Forfeited (200) 28.45 Granted 46,469 26.55 Non-vested at December 31, 2022 68,416 26.20 At December 31, 2022, there was $1.3 million of unrecognized compensation cost related to all non-vested share-based compensation awards, which will be recognized as compensation expense through June 2026 with a weighted average recognition period of 2.2 years. Mid Penn recognizes the impact of forfeitures as of the forfeiture date. |
Parent Company Statements
Parent Company Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Statements | Parent Company Statements CONDENSED BALANCE SHEETS December 31, (In thousands) 2022 2021 ASSETS Cash and cash equivalents $ 1,849 $ 44,825 Investment in subsidiaries 567,581 524,861 Other assets 845 1,604 Total assets $ 570,275 $ 571,290 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated debt and trust preferred securities $ 56,941 $ 74,274 Other liabilities 1,235 6,940 Shareholders' equity 512,099 490,076 Total liabilities and shareholders' equity $ 570,275 $ 571,290 CONDENSED STATEMENTS OF INCOME Years Ended December 31, (In thousands) 2022 2021 2020 Income Dividends from subsidiaries $ — $ 3,897 $ 7,537 Other income 1,130 35 13 Total Income 1,130 3,932 7,550 Expenses 7,333 15,391 3,715 (Loss) income before income tax and equity in undistributed earnings of subsidiaries (6,203) (11,459) 3,835 Income Tax Benefit 702 3,140 758 Equity in undistributed earnings of subsidiaries 60,307 37,638 21,616 Net Income $ 54,806 $ 29,319 $ 26,209 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (In thousands) 2022 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 54,806 $ 29,319 $ 26,209 Equity in undistributed earnings of subsidiaries (60,307) (37,638) (21,616) Stock based compensation 1,142 696 414 Amortization of debt issuance costs 26 26 32 Net change in other assets 759 (1,735) 89 Net change in other liabilities (6,285) 13,356 9,687 Net cash (used in) provided by operating activities (9,859) 4,024 14,815 CASH FLOWS FROM INVESTING ACTIVITIES Net cash paid for acquisition — (792) — Investment in subsidiary (1,787) (27,353) (10,500) Purchases of premises and equipment — — — Net cash used in investing activities (1,787) (28,145) (10,500) CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (12,735) (8,872) (6,504) Employee and Director Stock Purchase Plans stock issuance 364 307 295 Proceeds from issuance of common stock — 70,545 — Treasury stock purchased (2,957) (128) (1,795) Riverview restricted stock (1) 776 — — Subordinated debt and trust preferred securities (redemption) issuance (16,778) (6,870) 17,510 Other, net — (283) — Net cash (used in) provided by financing activities (31,330) 54,699 9,506 Net (decrease) increase in cash and cash equivalents (42,976) 30,578 13,821 Cash and cash equivalents, beginning of year 44,825 14,247 426 Cash and cash equivalents, end of year $ 1,849 $ 44,825 $ 14,247 (1) Additionally, 2,500 shares of restricted stock were paid out in cash resulting in $776 thousand of cash consideration relating to stock awards. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates subject to significant change include the allowance for loan losses, the expected cash flows and collateral values associated with impaired loans, the carrying value of other real estate owned ("OREO"), the fair value of financial instruments, business combination fair value computations, the valuation of goodwill and other intangible assets, stock-based compensation and deferred income tax assets. |
Significant Group of Concentrations of Credit Risk | Significant Group of Concentrations of Credit Risk - Most of the Corporation’s activities are with customers located within Pennsylvania . "Note 3 - In vestment Securities" discusses the types of investment securities in which the Corporation invests. "Note 4 - L oans and Allowance for Loan Losses" discusses the types of lending that the Corporation engages in as well as loan concentrations. The Corporation does not have a significant concentration of credit risk with any one customer. |
Fair Value Measurements | Fair Value Measurements - The Corporation uses estimates of fair value in applying various accounting standards for its consolidated financial statements on either a recurring or non-recurring basis. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. The Corporation groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. These levels are as follows Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; Level 2 - Observable inputs other than level 1 inputs, including quoted prices for similar assets and liabilities, quoted prices for identical assets and liabilities in less active markets and other inputs that can be corroborated by observable market data; and Level 3 - Unobservable inputs supported by limited or no market activity or data and inputs requiring significant management judgment or estimation; valuation techniques utilizing level 3 inputs include option pricing models, discounted cash flow models and similar techniques. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. It is the Corporations’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs in estimating fair value. Unobservable inputs are utilized in determining fair value estimates only to the extent that observable inputs are not available. The need to use unobservable inputs generally results from a lack of market liquidity and trading volume. Transfers between levels of fair value hierarchy are recorded at the end of the reporting period. Available for sale investment securities - The fair value of equity and debt securities classified as available for sale is determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather, relying on the securities’ relationship to other benchmark quoted prices. Equity securities - The fair value of equity securities with readily determinable fair values is recorded on the Consolidated Balance Sheet, with realized and unrealized gains and losses reported in other expense on the Consolidated Statements of Income. Loans held for sale - This category includes mortgage loans held for sale that are measured at fair value. Fair values as of December 31, 2022 were measured as the price that secondary market investors were offering for loans with similar characteristics. Loan-level interest rate swaps - are measured by alternative pricing sources with reasonable levels of price transparency in markets that are not active. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These markets do however have comparable, observable inputs in which an alternative pricing sources values these assets in order to arrive at a fair market value. These characteristics classify interest rate swap agreements as Level 2. Mortgage banking derivatives - represent the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors and the fair value of interest rate swaps. The fair values of the Corporation’s interest rate locks, forward commitments and interest rate swaps represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. These characteristics classify interest rate swap agreements as Level 2. See "Note 12 - Derivative Financial Instruments," for additional information. |
Cash and Cash Equivalents | Cash and Cash Equivalents - For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days. |
Restrictions on Cash and Due from Bank Accounts | Restrictions on Cash and Due from Bank Accounts - |
Debt Investment Securities | Debt Investment Securities - Mid Penn determines the classification of investment securities at the time of purchase. If Mid Penn has the intent and the ability at the time of purchase to hold debt securities until maturity, they are classified as held-to-maturity ("HTM"). HTM investment securities are stated at amortized cost. Debt securities Mid Penn does not intend to hold to maturity are classified as available for sale ("AFS") and carried at estimated fair value with unrealized gains or losses reported as a separate component of stockholders’ equity in accumulated other comprehensive income (loss), net of applicable income taxes. Available for sale securities are a part of Mid Penn’s asset/liability management strategy and may be sold in response to changes in interest rates, prepayment risk or other market factors. Management has elected to reclassify realized gains and losses from accumulated other comprehensive income when securities are sold on the trade date. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts on debt securities are amortized as an adjustment to interest income over the period to maturity of the related security using the effective interest method. Realized gains or losses on the sale of securities are determined using the specific identification method. Mid Penn reviews investment securities for impairment on a quarterly basis or more frequently if events and circumstances warrant. In order to determine if a decline in fair value below amortized cost represents other-than-temporary impairment ("OTTI"), management considers several factors, including but not limited to, the length of time and extent to which the fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer (considering factors such as adverse conditions specific to the issuer and the security and ratings agency actions) and the Corporation’s intent and ability to retain the investment in order to allow for an anticipated recovery in fair value. Mid Penn recognizes OTTI of a debt security for which there has been a decline in fair value below amortized cost if (i) management intends to sell the security, (ii) it is more likely than not that Mid Penn will be required to sell the security before recovery of its amortized cost basis, or (iii) Mid Penn does not expect to recover the entire amortized cost basis of the security. The amount by which amortized cost exceeds the fair value of a debt security that is considered to have OTTI is separated into a component representing the credit loss, which is recognized in earnings, and a component related to all other factors, which is recognized in other comprehensive income (loss). The measurement of the credit loss component is equal to the difference between the debt security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. If Mid Penn intends to sell the security, or if it is more likely than not it will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the amortized cost basis and fair value of the security. |
Equity Securities | Equity Securities - |
Loans Held for Sale | Loans Held for Sale - During the third quarter of 2021, the Corporation made the election to measure mortgage loans held for sale at fair value. Derivative financial instruments related to mortgage banking activities are also recorded at fair value, as detailed under the heading "Mortgage Banking Derivative Financial Instruments," below. The Corporation determines fair value for its mortgage loans held for sale based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Changes in fair values during the period are recorded as components of mortgage banking income on the Consolidated Statements of Income. Interest income earned on mortgage loans held for sale is classified in interest income on the Consolidated Statements of Income. In periods prior to the third quarter of 2021, m ortgage loans originated and intended for sale in the secondary market were included in loans held for sale and were reported at the lower of cost or fair value, as determined by the aggregate commitments from investors or current investor yield requirements. Gains and losses on sales of mortgage loans are included in noninterest income in the Consolidated Statements of Income. |
Loans | Loans - Loans that management has the intent and ability to hold for the foreseeable future are reported at their outstanding principal balances, net of an allowance for loan losses, unamortized deferred fees and costs and unamortized premiums or discounts. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using methods which approximate the level yield method. Discounts and premiums are amortized or accreted to interest income over the estimated term of the loans using methods that approximate the level yield method. Interest income on loans is accrued based on the unpaid principal balance outstanding and the contractual terms of the loan agreements. A substantial portion of the loan portfolio is comprised of commercial and real estate loans throughout Pennsylvania. The ability of the Corporation’s debtors to honor their contracts is dependent upon the general economic conditions of this area. The loan portfolio is segmented into commercial and industrial loans, commercial real estate loans, commercial real estate – construction loans, residential mortgage loans, home equity loans and consumer loans. Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to repay the loan through operating profitably and effectively growing its business. The Corporation’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the credit quality and cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee to add strength to the credit and reduce the risk on a transaction to an acceptable level; however, some short-term loans may be made on an unsecured basis to the most credit worthy borrowers. Commercial loans also include loans originated under the Paycheck Protection Program ("PPP"). These loans are underwritten and originated in accordance with program guidelines. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. With respect to loans to developers and builders, the Corporation generally requires the borrower to have a proven record of success and an expertise in the building industry. Commercial real estate - construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Commercial real estate - construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Commercial real estate - construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. The Corporation’s non-real estate consumer loans are based on the borrower’s proven earning capacity over the term of the loan. The Corporation monitors payment performance periodically for consumer loans to identify any deterioration in the borrower’s financial strength. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by management and staff. This activity, coupled with a relatively small volume of consumer loans, minimizes risk. Acquired Loans - Loans that Mid Penn acquires in connection with business combinations are recorded at fair value with no carryover of predecessor institutions’ related allowance for loan losses. The balance of loans acquired at fair value and included in the balance of loans, net of unearned interest, on the Consolidated Balance Sheets totaled $768.5 million and $1.0 billion as of December 31, 2022 and December 31, 2021, respectively. Determining the fair value of acquired loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Loans acquired with credit deterioration are accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . For these loans, the excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require Mid Penn to evaluate the need for an additional allowance. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which Mid Penn will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan. Loans acquired through business combinations that meet the specific criteria of ASC 310-30 are individually evaluated each period to analyze expected cash flows. To the extent that the expected cash flows of a loan have decreased due to credit deterioration, Mid Penn establishes an allowance. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20. These loans are initially recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield, using the level yield method, over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Acquired loans that met the criteria for impaired or non-accrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if Mid Penn expects to fully collect the new carrying value (i.e. fair value) of the loans established at the time of acquisition. As such, Mid Penn may no longer consider the loan to be non-accrual or non-performing at the date of acquisition and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. Non-accrual Loans - The Corporation classifies loans as past due when the payment of principal or interest is greater than 30 days delinquent based on the contractual next payment due date. The Corporation’s policies related to when loans are placed on non-accrual status conform to guidelines prescribed by regulatory authorities. Loans are placed on non-accrual status when it is probable that principal or interest is not fully collectible, or generally when principal or interest becomes 90 days past due, whichever occurs first. When loans are placed on non-accrual status, interest receivable is reversed against interest income in the current period and amortization of any discount ceases. Interest payments received thereafter are applied as a reduction to the remaining principal balance unless management believes that the ultimate collection of the principal is likely, in which case payments are recognized in earnings on a cash basis. Loans are removed from non-accrual status when they become current as to both principal and interest and the collectability of principal and interest is no longer doubtful. Generally, a non-accrual loan that is restructured remains on non-accrual for a reasonable period of time (generally, at least nine consecutive months) to demonstrate the borrower can meet the restructured terms. However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains classified as a non-accrual loan. Troubled Debt Restructuring ("TDR") - In certain situations, due to economic or legal reasons related to a borrower’s financial difficulties, the Corporation may grant a concession to the borrower for other than an insignificant period of time that it would not otherwise consider. At that time, the related loan is classified as a TDR and considered impaired. The concessions granted may include rate reductions, principal forgiveness, payment forbearance, extensions of maturity at rates of interest below those commensurate with the risk profile of the borrower, and other actions intended to minimize economic loss. A troubled debt restructured loan is generally placed on non-accrual status at the time of the modification unless the borrower has no history of missed payments for six months prior to the restructuring. If the borrower performs pursuant to the modified loan terms for at least six months and the remaining loan balance is considered collectible, the loan is returned to accrual status. Section 4013 of the CARES Act provides financial institutions the opportunity to opt out of applying the TDR accounting guidance in ASC 310-40 for certain loan modifications. Loan modifications made between March 1, 2020 and the earlier of (i) 60 days after the end of the national emergency proclamation or (ii) December 31, 2020. Section 541 of the Consolidated Appropriations Act of 2021, amended Section 4013 of the CARES Act to extend this relief to the earlier of (i) 60 days after the end of the national emergency proclamation or (ii) January 1, 2022. Impaired Loans - Loans are considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due, according to the contractual terms of the loan agreements. All impaired loans are reviewed individually for specific reserves on a monthly basis. Allowance for Loan Losses - The allowance for credit losses consists of the allowance for loan losses ("allowance"), and the reserve for unfunded lending commitments. The allowance represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the Consolidated Balance Sheet. The reserve for unfunded lending commitments was $85 thousand and $72 thousand at December 31, 2022 and 2021, respectively. The allowance is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged off to the allowance, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of bankruptcy or if there is an amount deemed uncollectible. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance is maintained at a level considered by management to be adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on Mid Penn’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include changes in economic conditions, fluctuations in loan quality measures, changes in collateral values, changes in the experience of the lending staff and loan review systems, changes in lending policies and procedures (including underwriting standards), changes in the mix and volume of loans originated, the effect of other external factors, such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio, shifting industry or portfolio concentrations, and other relevant factors. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions and a narrative accompanying the allowance for loan loss calculation. The unallocated component of the allowance for loan losses covers several considerations that are not specifically measurable through either the specific and general components. The unallocated component allocation recognizes the inherent imprecision in our allowance for loan loss methodology, or any alternative methodology, for estimating specific and general loan losses, including the unpredictable timing and amounts of charge-offs, the fact that historical loss averages don’t necessarily correlate to future loss trends, and unexpected changes to specific-credit or general portfolio future cash flows and collateral values which could negatively impact unimpaired portfolio loss factors. Mid Penn evaluates loans for charge-off on a monthly basis. Policies that govern the recommendation for charge-off are unique to the type of loan being considered. Commercial loans classified as substandard non-accrual, doubtful, having probable loss will first have a collateral evaluation completed in accordance with the guidance on impaired loans. Once the collateral evaluation has been completed, a specific allocation of allowance is made based upon the results of the evaluation. The remaining balance remains a non-performing loan with the original terms and interest rate intact (not restructured). In the event the loan is unsecured, the loan would have been charged-off at the recognition of impairment. Commercial real estate loans determined to be impaired will also have an initial collateral evaluation completed in accordance with the guidance on impaired loans. An updated real estate valuation is ordered and the collateral evaluation is modified to reflect any variations in value. A specific allocation of allowance is made for any anticipated collateral shortfall. The remaining balance remains a non-performing loan with the original terms and interest rate intact (not restructured). The process of charging off a residential mortgage loan begins when a loan becomes delinquent for 90 days and is not in the process of collection. The existing appraisal is reviewed and a lien search is obtained to determine lien position and any instances of intervening liens. A new appraisal of the property will be ordered if deemed necessary by management, and a collateral evaluation is completed. The loan will then be charged down to the value indicated in the evaluation. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of either bankruptcy or if there is an amount deemed uncollectible. The collateral shortfall of the consumer loan is recommended for charge-off at this point. As noted above, Mid Penn assesses a specific allocation for commercial loans and commercial real estate loans. The remaining balance remains a non-performing loan with the original terms and interest rate intact (not restructured). In addition, Mid Penn takes a preemptive step when any commercial loan becomes classified under its internal classification system. A preliminary collateral evaluation, in accordance with the guidance on impaired loans, is prepared using the existing collateral information in the loan file. This process allows Mid Penn to review both the credit and documentation files to determine the status of the information needed to make a collateral evaluation. This collateral evaluation is preliminary, but allows Mid Penn to determine if any potential collateral shortfalls exist. It is Mid Penn’s policy to obtain updated third-party collateral valuations on all impaired loans secured by real estate as soon as practically possible following the credit being classified as substandard non-accrual. Prior to receipt of the updated real estate valuation, Mid Penn will use any existing real estate valuation to determine any potential allowance issues; however, no allowance recommendation will be made until such time Mid Penn is in receipt of the updated valuation. The Asset Recovery department employs an electronic tracking system to monitor the receipt of and need for updated appraisals. To date, there have been no material time lapses noted with the above processes. In some instances, Mid Penn is not holding real estate as collateral and is relying on business assets (personal property) for repayment. In these circumstances, a collateral inspection is performed by Mid Penn personnel to determine an estimated value. The value is based on net book value, as provided by the financial statements, and discounted accordingly based on determinations made by management. Occasionally, Mid Penn will employ an outside service to provide a fair estimate of value based on auction sales or private sales. Management reviews the estimates of these third parties and discounts them accordingly based on management’s judgment, if deemed necessary. For impaired loans with no valuation allowance required, the independent third-party market valuations on the subject property obtained by Mid Penn as soon as practically possible following the credit being placed on non-accrual status sometimes indicates that the loan-to-value ratio is sufficient to obviate the need for a specific allocation in spite of significant deterioration in real estate values in Mid Penn’s primary market area. These circumstances are determined on a case-by-case analysis of the impaired loans. Mid Penn actively monitors the values of collateral on impaired loans. This monitoring may require the modification of collateral values over time or changing circumstances by some factor, either positive or negative, from the original values. All collateral values will be assessed by management at least every twelve months for revaluation by an independent third party. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, Mid Penn does not separately identify individual residential mortgage loans, home equity loans and other consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. The allowance calculation methodology includes segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors, and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans criticized as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Any loans not classified as noted above are rated pass. In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance and may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. |
Premises and Equipment | Premises and Equipment - Land is carried at cost. Buildings, furniture, fixtures, equipment, land improvements, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Building assets are depreciated using an estimated useful life of five three ten ten The Corporation reviews the carrying value of long-lived assets and certain identifiable intangibles for impairment whenever events and changes in circumstances indicate that the carrying amount of an asset may not be recoverable, as prescribed by ASC Topic 360, "Accounting for the Impairment or Disposal of Long-Lived Assets". |
Bank Premises and Equipment Held For Sale | Bank Premises and Equipment Held For Sale - Bank premises and equipment designated as held for sale are carried at the lower of cost or market value , and totaled $1.3 million and $3.9 million at December 31, 2022 and 2021, respectively. The balance at December 31, 2021 related to the December 7, 2021 announcement of a Retail Network Optimization Plan pursuant to which the Bank announced its intention to close certain retail locations throughout its expanded footprint. The branch closures occurred on about March 4, 2022. As of December 31, 2022, three properties remained for sale. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale - Real estate properties acquired through, or in lieu of, loan foreclosure are initially recorded at their fair value less estimated disposition costs. When such assets are acquired, any shortfall between the loan carrying value and the estimated fair value of the underlying collateral less disposition costs is recorded as an adjustment to the allowance for loan losses while any excess is recognized in income. The Corporation periodically performs a valuation of the property held; any excess of carrying value over fair value less disposition costs is charged to earnings as impairment. Routine maintenance and real estate taxes are expensed as incurred. |
Bank Owned Life Insurance | Bank-Owned Life Insurance ("BOLI") - Mid Penn is the owner and beneficiary of BOLI policies on current and former Mid Penn directors, as well as BOLI policies acquired through the Phoenix, First Priority and Riverview acquisitions covering certain former Miners Bank, First Priority, and Riverview employees. These policies are recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement, if applicable. Increases in the cash surrender value of these policies are included in noninterest income in the Consolidated Statements of Income. The Corporation's BOLI policies are invested in general account and hybrid account products that have been underwritten by highly-rated third party insurance carriers. Mid Penn is also party to certain Split-Dollar Life Insurance Arrangements, and in accordance with GAAP, has accrued a liability related to the postretirement benefits covered by an endorsement split-dollar life insurance arrangement, and a liability for the future death benefit. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets - Goodwill represents the excess of the purchase price over the underlying fair value of merged entities. We assess goodwill for impairment annually as of October 31 of each year. The Corporation has one reporting unit, community banking, which includes the Bank, the Corporation’s wholly-owned banking subsidiary. If certain events occur which indicate goodwill might be impaired between annual tests, goodwill must be tested when such events occur. In making this assessment, we consider a number of factors including operating results, business plans, economic projections, anticipated future cash flows, current market data, etc. There are inherent uncertainties related to these factors and our judgment in applying them to the analysis of goodwill impairment. Changes in economic and operating conditions could result in goodwill impairment in future periods. The Bank did not identify any impairment on its outstanding goodwill from its most recent testing, which was performed as of October 31, 2022. Core deposit intangible ("CDI") is a measure of the value of checking and savings deposits acquired in business combinations. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding relative to an alternative source of funding. CDI is amortized over the estimated useful lives of the existing deposit relationships acquired, but does not exceed ten years. Significantly all CDI is amortized using the sum of the years digits method. Customer list intangibles are a measure of the the inherent value of certain customer arrangements acquired in business combinations. The fair value of the customer list is based on the income approach which employs a present value analysis, which calculates the expected after-tax cash flow benefits of the net revenues generated by the acquired customers over the expected life of the acquired customers, discounted at a long-term market-oriented after-tax rate of return on investment. The value assigned to the acquired customers represents the future economic benefit from acquiring the customers (net of operating expenses). The customer list is amortized over a 20-year projection period, a sufficient time to capture the economic value of the customer list given an assumed customer attrition rate. |
Leases | Leases - Mid Penn leases certain premises and equipment and recognizes a right-of-use ("ROU") asset and a related lease liability for each distinct lease agreement. The lease ROU asset consists of the amount of the initial measurement of the lease liability, adjusted for any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, and any initial direct costs incurred by the lessee (defined as costs of a lease that would not have been incurred had the lease not been executed). The related lease liability is equal to the present value of the future lease payments, discounted using the rate implicit in the lease (or if that rate cannot be readily determined, the lessee’s incremental borrowing rate). Given that the rate implicit in the lease is rarely available, all lease liability amounts are calculated using Mid Penn’s incremental borrowing rate at lease inception, on a collateralized basis, for a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. Operating and finance lease ROU assets, as well as operating lease liabilities, are presented as separate line items on the Consolidated Balance Sheet, while finance lease liabilities are classified as a component of long-term debt Operating lease expense, recognized as a component of occupancy expense on the Consolidated Statements of Income, consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. Operating lease expense also includes variable lease payments not included in the lease liability, and any impairment of the ROU asset. Finance lease expense consists of the amortization of the ROU asset, recognized as a component of occupancy expense and interest expense on the lease liability, which is recorded as a component of other interest expense, both on the Consolidated Statements of Income. In assessing whether a contract contains a lease, Mid Penn reviews third-party agreements to determine if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration, and grants Mid Penn the right to both obtain substantially all of the economic benefits from the identified asset’s use and the direct the use of the identified asset throughout the term of the agreement. Upon identification that a lease agreement exists, Mid Penn performs an assessment of the consideration to be paid related to the identified asset and quantifies both the lease components, consisting of consideration paid to transfer a good or service to Mid Penn and non-lease components, consisting of consideration paid for distinct elements of the contract that are not related to securing the use of the leased asset, such as property taxes, common area maintenance, utilities, and insurance. Many of Mid Penn’s lease agreements include options to extend or renew contracts subsequent to the expiration of the initial lease term. Additionally, for leases that contain escalation clauses related to consumer or other price indices, Mid Penn includes the known lease payment amount as of the commencement date in the calculation of ROU assets and related lease liabilities. Subsequent increases in rental payments over the known amount at the commencement date due to increase in the indices will be expensed as incurred. None of Mid Penn’s lease agreements include residual value guarantees or material variable lease payments. Mid Penn does not have material restrictions or covenants imposed by leases that would impact Mid Penn’s ability to pay dividends or cause Mid Penn to incur additional financial obligations. |
Comprehensive Income | Comprehensive Income - Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes changes in unrealized gains and losses on securities available for sale arising during the period and reclassification adjustments for realized gains and losses on securities available for sale included in net income. Mid Penn has an unfunded noncontributory defined benefit plan for directors and other postretirement benefit plans covering full-time employees. These plans utilize assumptions and methods to calculate the fair value of plan assets and recognizing the overfunded and underfunded status of the plans on its Consolidated Balance Sheet. Gains and losses, prior service costs and credits are recognized in other comprehensive income (loss), net of tax, until they are amortized, or immediately upon curtailment. |
Trust Assets and Income | Trust Assets and Income - Assets held by the Bank in a fiduciary or agency capacity for customers of the trust department of the Bank are not included in the Consolidated Financial Statements since such items are not assets of the Bank. Most trust income is recognized on the cash basis, which is not materially different than if it were reported on the accrual basis. |
Revenue Recognition | Revenue Recognition - Mid Penn recognizes revenue when earned based upon contractual terms, as transactions occur, or as related services are provided and collectability is reasonably assured. The largest source of revenue for Mid Penn is interest income. Noninterest income is earned from various banking and financial services that Mid Penn offers through its subsidiaries. In certain circumstances, noninterest income is reported net of associated expenses. Following is further detail on the various types of noninterest income Mid Penn earns and when it it recognized: Interest Income - primarily recognized on an accrual basis according to loan agreements, investment securities contracts or other such written contracts. Income from Fiduciary and Wealth Management Activities - consists of trust, wealth management, and investment management fee income, brokerage transaction fee income, and estate fee income. Trust, wealth management, and investment management fee income consists of advisory fees that are typically based on market values of clients’ managed portfolios and transaction fees for fiduciary services performed, both of which are recognized as earned. Brokerage transaction fee income includes advisory fees, which are recognized as earned on a monthly basis and transaction fees that are recognized when transactions occur. Payment is typically received in the following month. Estate fee income is recognized as services are performed over the service period, generally eighteen months. ATM Debit Card Interchange Income - consists interchange fees earned when Mid Penn’s debit cards are processed through card payments networks. The interchange fee is calculated as a percentage of the total electronic funds transfer ("EFT") transaction plus a per-transaction fee, which varies based on the type of card used, the method used to process the EFT transaction, and the type of business at which the transaction was processed. Revenue is recognized daily as transactions occur and interchange fees are subsequently processed. Payment for interchange activity is received primarily daily, while some fees are aggregated and payment is received in the following month. Service Charges on Deposits - consist of cash management, overdraft, non-sufficient fund fees and other service charges on deposit accounts. Revenue is primarily transactional and recognized when earned, which is at the time the respective initiating transaction occurs and the related service charge is subsequently processed. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to the customers’ accounts. Mortgage Banking Income - consists of gains or losses on the sale of residential mortgage loans and is recognized when the sale is completed. Mortgage Hedging Income - relates to the changes in fair value of interest rate locks, forward mortgage loan sales commitments and hedging instruments on forward sales commitments. Other Income - includes credit card royalties, check orders, letter of credit fees and merchant services income. These fees are primarily transactional, and revenue is recognized when transactions occur and the related services are subsequently processed. Payment is primarily received immediately or in the following month. |
Income Taxes | Income Taxes - Income tax expense is determined using the asset and liability method and consists of income taxes that are currently payable and deferred income taxes. Deferred income tax expense (benefit) is determined by recognizing deferred tax assets and liabilities for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Changes in tax rates on deferred tax assets and liabilities are recognized in income in the period that includes the enactment date. A valuation allowance is established for deferred tax assets when management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized. In making such determinations, the Corporation considers all available positive and negative evidence that may impact the realization of deferred tax assets. These considerations include future reversals of existing taxable temporary differences, projected future taxable income, and available tax planning strategies. The Corporation files a consolidated federal income tax return including the results of its wholly-owned subsidiaries. The Corporation estimates income taxes payable based on the amount it expects to owe the various tax authorities (i.e., federal and state). Income taxes represent the net estimated amount due to, or to be received from, such tax authorities. In estimating income taxes, management assesses the relative merits and risks of the appropriate tax treatment of transactions, taking into account statutory, judicial, and regulatory guidance in the context of the Corporation’s tax position. Although the Corporation uses the best available information to record income taxes, underlying estimates and assumptions can change over time as a result of unanticipated events or circumstances such as changes in tax laws and judicial guidance influencing its overall tax position. An uncertain tax position is recognized only if it is more-likely-than-not to be sustained upon examination, including resolution of any related appeals or litigation process, based on the technical merits of the position. The amount of tax benefit recognized in the financial statements is the largest amount of benefit that is more than fifty percent likely to be sustained upon ultimate settlement of the uncertain tax position. If the initial assessment fails to result in recognition of a tax benefit, the Corporation subsequently recognizes a tax benefit if there are changes in tax law or case law that raise the likelihood of prevailing on the technical merits of the position to more-likely-than-not, the statute of limitations expires, or there is a completion of an examination resulting in a settlement of that tax year or position with the appropriate agency. The Corporation’s policy is to classify interest and penalties associated with income taxes within other expenses. |
Off-Balance Sheet Arrangements | Off-Balance Sheet Arrangements - The Corporation enters into contractual loan commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Since a portion of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Substantially all of the commitments to extend credit are contingent upon customers maintaining specific credit standards until the time of loan funding. The Corporation decreases its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Standby letters of credit are written conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Corporation would be required to fund the commitment. The maximum potential amount of future payments the Corporation could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, the Corporation would be entitled to seek recovery from the customer. The Corporation’s policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements. |
Earning Per Common Share | Earnings per Common Share - The Corporation presents basic and diluted earnings per common share ("EPS") data for its common stock. Basic EPS is calculated by dividing the net income attributable to shareholders of the Corporation by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to shareholders and the weighted average number of shares of common stock outstanding adjusted for the effects of all dilutive potential common shares comprised of restricted stock awards. |
Treasury Stock | Treasury Stock - Common stock held in treasury is accounted for using the cost method, which treats stock held in treasury as a reduction to total stockholders’ equity. The shares may be purchased in the open market or in privately negotiated transactions from time to time depending upon the market conditions and other factors over a one-year period or such longer period of time as may be necessary to complete such repurchases. |
Derivative Financial Instruments | Derivative Financial Instruments Loan-level Interest Rate Swaps - The Corporation offers certain derivative products directly to qualified commercial lending clients seeking to manage their interest rate risk. The Corporation economically hedges interest rate swap transactions to execute with commercial lending clients by entering into offsetting interest rate swap transactions with institutional derivatives market participants. Derivative transactions executed as part of this program are not designed as qualifying hedging relationships and are, therefore, carried at fair value with the change in fair value recorded as noninterest income. Because these derivatives have mirror-image contractual terms, in additional to collateral provisions which mitigate the impact of non-performance risk, the changes in fair value are expected to substantially offset. Mortgage Banking Derivative Financial Instruments - During the third quarter of 2021, Mid Penn began using mortgage banking derivative financial instruments as part of our overall strategy to manage exposure to market risk within our mortgage banking operations, primarily due to fluctuations in interest rates, and to reduce the risk of price volatility of loans in the commitment phase. In connection with its mortgage banking activities, Mid Penn enters into interest rate lock commitments ("IRLCs") to extend credit to a mortgage applicant within a specified period of time, provided certain specified terms and conditions are met, and with both the interest rate and the maximum loan amount set prior to funding. This loan commitment binds Mid Penn (subject to approval of the loan) to fund the loan at the specified rate, regardless of whether interest rates have changed between the commitment date and the loan funding date. Outstanding IRLCs may expose Mid Penn to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. As such, outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of the commitment through the loan funding date or expiration date. The IRLC does not contractually obligate the borrower to close the loan, regardless of whether Mid Penn approves the loan. Mid Penn originates all mortgage loans with the intention that the loans will be held for sale in the secondary market. Mid Penn enters into forward mortgage loan sales commitments shortly after extending an IRLC to the borrower to mitigate interest rate risk related to the IRLC for mortgage loans originated for sale. Mid Penn enters into mortgage loan sales commitments as either a mandatory commitment, meaning that the loan must be delivered at an agreed-upon price within a specified timeframe, or a best-effort commitment, meaning that the loan will be delivered if and when it closes, with a price that is typically less favorable than a mandatory commitment and often with a large markup. If a mandatory commitment is not delivered within the agreed-upon timeframe or price point, Mid Penn would likely be required to "pair out" of the commitment and may be subject to a pair-off fee. In addition, Mid Penn enters into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Mandatory forward loan sales commitments are accounted for as freestanding derivative instruments and are carried at fair value equal to the amount required to settle the commitment as of the reporting date based on the underlying mortgage loans and the probability of commitments being exercised. Gross derivative assets and liabilities are recorded within other assets and other liabilities on the Consolidated Balance Sheet, with changes in fair value during the period recorded in other noninterest income in the Consolidated Statements of Income. Best effort forward sales commitments are financial instruments which are carried at fair value under ASC 825 – Financial Instruments. Fair value is estimated as the amount required to settle the commitment as of the reporting date, which is based on the underlying mortgage loans and the probability of commitments being exercised. Gross derivative assets and liabilities are recorded within other assets |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted ASU No. 2020-04: The FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Specifically, the guidance permits an entity, when certain criteria are met, to consider amendments to contracts made to comply with reference rate reform to meet the definition of a modification under GAAP. It further allows hedge accounting to be maintained and a one-time transfer or sale of qualifying HTM securities. The expedients and exceptions provided by the amendments were permitted to be adopted any time through December 31, 2022 and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for certain optional expedients elected for certain hedging relationships existing as of December 31, 2022. The Corporation applied the guidance during 2022 to any contract modifications made due to reference rate reform. ASU No. 2022-06: The FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of Sunset Date of topic 848. This update extends the sunset provision date of "ASU 2020-04" to December 31, 2024. ASU 2022-06 became effective for the Corporation upon issuance of ASU 2022-06. The Corporation does not expect ASU 2022-06 to have a material impact on its Consolidated Financial Statements. Accounting Standards Pending Adoption ASU 2016-13 : The FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as further amended . The ASU requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model, referred to as the current expected credit loss model ("CECL"). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for purchased financial assets with a more-than insignificant amount of credit deterioration since origination ("PCD assets") should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance is added to the purchase price to determine the initial amortized cost basis, referred to as the gross up approach. The subsequent accounting for PCD assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale ("AFS") debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Certain incremental disclosures are required. Subsequently, the FASB issued ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, and ASU 2019-11 and ASU 2020-02 to clarify, improve, or defer the adoption of ASU 2016-13. In October 2019, the FASB issued ASU 2019-10 which deferred the implementation date of ASU 2016-13 for smaller reporting companies ("SRCs") until January 1, 2023. Mid Penn qualified as an SRC as of the date this guidance was issued; therefore, Mid Penn adopted this ASU effective January 1, 2023. Mid Penn is continuing to validate the Corporation's CECL model and methodologies but expects an increase to the allowance for credit losses, which includes the reserves for unfunded commitments, as a result of the adoption of CECL. Based on current estimates, management estimates that this increase will be no greater than 200% of the total credit loss reserve as of December 31, 2022. This estimate is subject to change based on continuing refinement and validation of the model and methodologies. ASU No. 2022-02: The FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the TDR recognition and measurement guidance and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. In addition, this ASU enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, this ASU requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. For entities that have adopted the amendments in update 2016-13, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted the amendments in update 2016-13, the effective dates for the amendments in this update are the same as the effective dates in Update 2016-13. The Corporation adopted this ASU effective January 1, 2023 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Allocation of the Purchase Price | The allocation of the purchase price is as follows: (In thousands) Assets acquired: Cash and cash equivalents $ 316,079 Investment securities 226 Restricted stock 2,209 Loans 837,505 Goodwill 51,031 Core deposit intangible 3,391 Customer list intangible 2,160 Bank owned life insurance 32,120 Premises and equipment 12,524 Deferred income taxes 7,116 Accrued interest receivable 1,919 Other assets 6,641 Total assets acquired 1,272,921 Liabilities assumed: Deposits: Noninterest-bearing demand 182,291 Interest-bearing demand 371,283 Money Market 152,365 Savings 176,294 Time 199,414 Long-term debt 6,500 Subordinated debt and trust preferred securities 36,308 Accrued interest payable 439 Other liabilities 5,043 Total liabilities assumed 1,129,937 Consideration paid $ 142,984 Cash paid $ 792 Fair value of common stock issued 142,192 |
Summary of the Final Estimated Fair Value of the Assets Acquired and Liabilities and Equity Assumed | Accounting Standards Codification ("ASC") Topic 805, Business Combinations, allows for adjustments to goodwill up to one year after the merger date for information that becomes available during this post-merger period that reflects circumstances at the date of merger. During 2022, the Corporation increased its goodwill $36 thousand to account for changes to the deferred income tax asset and current income tax receivable upon the completion of the Riverview final tax return. The following table summarizes the final estimated fair value of the assets acquired and liabilities and equity assumed in the Riverview transaction. (In thousands) Total purchase price (consideration paid) $ 142,984 Net assets acquired: Cash and cash equivalents 316,079 Investment securities 226 Restricted stock 2,209 Loans 837,505 Core deposit intangible 3,391 Customer list intangible 2,160 Bank owned life insurance 32,120 Premises and equipment 12,524 Deferred income taxes 7,116 Accrued interest receivable 1,919 Other assets 6,641 Deposits: Noninterest-bearing demand (182,291) Interest-bearing demand (371,283) Money Market (152,365) Savings (176,294) Time (199,414) Long-term debt (6,500) Subordinated debt and trust preferred securities (36,308) Accrued interest payable (439) Other liabilities (5,043) Net assets acquired 91,953 Goodwill $ 51,031 |
Fair Value Adjustments Made to the Amortized Cost Basis, Presented at the Fair Value of Loans Acquired | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (In thousands) Gross amortized cost basis at November 30, 2021 $ 850,920 Market rate adjustment 529 Credit fair value adjustment on pools of homogeneous loans (13,117) Credit fair value adjustment on impaired loans (827) Fair value of purchased loans at November 30, 2021 $ 837,505 |
Fair Value of the Loans Acquired | The information about the acquired Riverview impaired loan portfolio as of November 30, 2021 is as follows: (In thousands) Contractually required principal and interest at acquisition $ 5,591 Contractual cash flows not expected to be collected (nonaccretable discount) (1,739) Expected cash flows at acquisition 3,852 Interest component of expected cash flows (accretable discount) (541) Fair value of acquired loans $ 3,311 |
Pro Forma Information | For the Year Ended (In thousands, except per share data) 2021 2020 Net interest income after loan loss provision $ 147,987 $ 116,989 Noninterest income 32,638 26,681 Noninterest expense 123,475 108,531 Net income 57,150 35,139 Net income per common share 3.73 2.72 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Securities Financing Transactions Disclosures [Abstract] | |
Unrealized Gain (Loss) on Investments | The amortized cost and fair value on investment securities as of December 31 are as follows: (In thousands) Amortized Unrealized Unrealized Fair 2022 Available-for-sale debt securities: U.S. Treasury and U.S. government agencies $ 36,528 $ — $ 1,614 $ 34,914 Mortgage-backed U.S. government agencies 185,993 — 19,078 166,915 State and political subdivision obligations 4,354 — 815 3,539 Corporate debt securities 35,467 — 2,957 32,510 Total available-for-sale debt securities $ 262,342 $ — $ 24,464 $ 237,878 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies $ 245,671 $ — $ 34,834 $ 210,837 Mortgage-backed U.S. government agencies 50,710 — 6,676 44,034 State and political subdivision obligations 87,125 — 8,345 78,780 Corporate debt securities 15,988 — 1,134 14,854 Total held-to-maturity debt securities 399,494 — 50,989 348,505 Total $ 661,836 $ — $ 75,453 $ 586,383 (In thousands) Amortized Unrealized Unrealized Fair 2021 Available-for-sale debt securities: Mortgage-backed U.S. government agencies $ 49,760 $ 3 $ 283 $ 49,480 State and political subdivision obligations 3,899 26 11 3,914 Corporate debt securities 9,525 — 57 9,468 Total available-for-sale debt securities $ 63,184 $ 29 $ 351 $ 62,862 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies $ 178,136 $ 26 $ 1,165 $ 176,997 Mortgage-backed U.S. government agencies 61,157 440 272 61,325 State and political subdivision obligations 75,958 2,305 27 78,236 Corporate debt securities 14,006 133 71 14,068 Total held-to-maturity debt securities 329,257 2,904 1,535 330,626 Total $ 392,441 $ 2,933 $ 1,886 $ 393,488 |
Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair value of investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022 and 2021. (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2022 Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized Available-for-sale debt securities: U.S. Treasury and U.S. government agencies 19 $ 34,914 $ 1,614 — $ — $ — 19 $ 34,914 $ 1,614 Mortgage-backed U.S. government agencies 69 131,879 11,876 24 35,036 7,202 93 166,915 19,078 State and political subdivision obligations 6 2,521 671 2 1,018 144 8 3,539 815 Corporate debt securities 12 25,063 2,153 4 4,196 804 16 29,259 2,957 Total available-for-sale debt securities 106 194,377 16,314 30 40,250 8,150 136 234,627 24,464 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 54 84,946 10,093 91 125,891 24,741 145 210,837 34,834 Mortgage-backed U.S. government agencies 40 13,866 1,071 24 30,168 5,605 64 44,034 6,676 State and political subdivision obligations 185 73,735 7,413 18 4,616 932 203 78,351 8,345 Corporate debt securities 4 5,721 317 5 5,182 817 9 10,903 1,134 Total held-to-maturity debt securities 283 178,268 18,894 138 165,857 32,095 421 344,125 50,989 Total 389 $ 372,645 $ 35,208 168 $ 206,107 $ 40,245 557 $ 578,752 $ 75,453 (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2021 Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized Available-for-sale securities: U.S. government agencies 24 $ 45,476 $ 283 — $ — $ — 24 $ 45,476 $ 283 State and political subdivision obligations 2 1,168 11 — — — 2 1,168 11 Corporate debt securities 4 4,943 57 — — — 4 4,943 57 Total available-for-sale securities 30 51,587 351 — — — 30 51,587 351 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 91 149,425 1,165 — — — 91 149,425 1,165 Mortgage-backed U.S. government agencies 24 39,995 272 — — — 24 39,995 272 State and political subdivision obligations 17 5,302 25 1 255 2 18 5,557 27 Corporate debt securities 6 6,928 71 — — — 6 6,928 71 Total held to maturity securities 138 201,650 1,533 1 255 2 139 201,905 1,535 Total 168 $ 253,237 $ 1,884 1 $ 255 $ 2 169 $ 253,492 $ 1,886 |
Schedule of Gross Realized Gains (Losses) on Sales of Available-For-Sale Securities | The following table presents information related to gross realized gains and losses on sales of AFS securities: For the year ended December 31, (In thousands) 2022 2021 2020 Gross realized gains $ — $ 79 $ 479 Gross realized losses — — (12) Net gains $ — $ 79 $ 467 |
Investments Classified by Contractual Maturity Date | The table below illustrates the maturity distribution of investment securities at amortized cost and fair value at December 31, 2022. (In thousands) Available-for-sale Held-to-maturity December 31, 2022 Amortized Fair Amortized Fair Due in 1 year or less $ 250 $ 250 $ 3,745 $ 3,719 Due after 1 year but within 5 years 41,289 39,865 87,184 81,927 Due after 5 years but within 10 years 31,942 28,555 214,469 183,635 Due after 10 years 2,868 2,293 43,386 35,190 76,349 70,963 348,784 304,471 Mortgage-backed securities 185,993 166,915 50,710 44,034 $ 262,342 $ 237,878 $ 399,494 $ 348,505 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Type of Loan Portfolio Summarized by the Aggregate Risk Rating | Mid Penn’s loan portfolio by type is summarized by loans (net of deferred fees and costs of $3.9 million and $6.3 million as of December 31, 2022 and 2021, respectively) rated as "pass" and loans classified as "special mention" and "substandard" within Mid Penn’s internal risk rating system are as follows as of December 31: (In thousands) Pass Special Substandard Total 2022 Commercial and industrial $ 582,540 $ 4,212 $ 9,290 $ 596,042 Commercial real estate 2,018,088 12,325 22,521 2,052,934 Commercial real estate - construction 438,990 2,256 — 441,246 Residential mortgage 299,288 3,104 2,994 305,386 Home equity 109,971 — 864 110,835 Consumer 7,676 — — 7,676 Total loans $ 3,456,553 $ 21,897 $ 35,669 $ 3,514,119 (In thousands) Pass Special Substandard Total 2021 Commercial and industrial $ 606,484 $ 10,321 $ 2,757 $ 619,562 Commercial real estate 1,601,196 35,508 31,438 1,668,142 Commercial real estate - construction 371,337 — 1,397 372,734 Residential mortgage 319,862 294 3,067 323,223 Home equity 106,853 534 2,919 110,306 Consumer 10,429 — — 10,429 Total loans $ 3,016,161 $ 46,657 $ 41,578 $ 3,104,396 |
Impaired Loans by Loan Portfolio Class | Impaired loans by loan portfolio class are summarized as follows: December 31, 2022 December 31, 2021 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial and industrial $ — $ 18 $ — $ — $ 31 $ — Commercial real estate 2,093 2,514 — 854 1,243 — Commercial real estate - construction — 2 — 22 27 — Residential mortgage 1,079 1,129 — 1,259 1,295 — Home equity 33 34 — 2,377 2,377 — With no related allowance recorded and acquired with credit deterioration: Commercial real estate $ 2,537 $ 3,532 $ — $ 2,231 $ 2,909 $ — Commercial real estate - construction — — — 1,196 1,469 — Residential mortgage 1,014 1,559 — 1,362 1,847 — Home equity 126 154 — 86 111 — With an allowance recorded: Commercial and industrial $ 1,222 $ 1,703 $ 801 $ 308 $ 339 $ 67 Commercial real estate 230 235 64 287 359 121 Home equity 252 252 22 — — — Total Impaired Loans: Commercial and industrial $ 1,222 $ 1,721 $ 801 $ 308 $ 370 $ 67 Commercial real estate 4,860 6,281 64 3,372 4,511 121 Commercial real estate - construction — 2 — 1,218 1,496 — Residential mortgage 2,093 2,688 — 2,621 3,142 — Home equity 411 440 22 2,463 2,488 — |
Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class | The average recorded investment of impaired loans and related interest income recognized are summarized as follows for the years ended December 31: 2022 2021 2020 (In thousands) Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income With no related allowance recorded: Commercial and industrial $ 45 $ — $ 303 $ 2 $ 1,136 $ — Commercial real estate 907 — 2,308 2 9,379 5 Commercial real estate - construction 89 — 26 — 44 — Residential mortgage 845 23 974 26 998 26 Home equity 468 185 2,367 2 1,801 — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ — $ — $ — $ — $ 1 $ — Commercial real estate 2,893 — 1,485 — 1,423 — Commercial real estate - construction — — 122 — — — Residential mortgage 1,165 — 401 — 361 — Home equity 129 — 8 — 1 — With an allowance recorded: Commercial and industrial $ 847 $ — $ 211 $ — $ 205 $ — Commercial real estate 167 — 1,011 — 752 — Home equity 153 — — — — — Total: Commercial and industrial $ 892 $ — $ 514 $ 2 $ 1,342 $ — Commercial real estate 3,967 — 4,804 2 11,554 5 Commercial real estate - construction 89 — 148 — 44 — Residential mortgage 2,010 23 1,375 26 1,359 26 Home equity 750 185 2,375 2 1,802 — |
Schedule of Accretion of Purchased Impaired Loan | The following table provides activity for the accretable yield of purchased impaired loans for the years ended: December 31, (In thousands) 2022 2021 Accretable yield, beginning of period $ 580 $ 40 Acquisition of impaired loans — 541 Accretable yield amortized to interest income (261) (1) Accretable yield, end of period $ 319 $ 580 |
Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration | Non-accrual loans by loan portfolio class, including loans acquired with credit deterioration, are summarized as follows as of December 31: (In thousands) 2022 2021 Commercial and industrial $ 1,222 $ 308 Commercial real estate 4,864 3,372 Commercial real estate - construction — 1,218 Residential mortgage 1,698 2,186 Home equity 411 2,463 $ 8,195 $ 9,547 |
Loan Portfolio Summarized by the Past Due Status | The classes of the loan portfolio summarized by the past due status as of December 31 are summarized as follows: (In thousands) 30-59 60-89 Greater Total Past Current Total Loans Loans 2022 Commercial and industrial $ 1,808 $ 3 $ 1,854 $ 3,665 $ 592,377 $ 596,042 $ 654 Commercial real estate 1,792 — 1,438 3,230 2,047,167 2,050,397 — Commercial real estate - construction 2,258 — — 2,258 438,988 441,246 — Residential mortgage 2,642 872 415 3,929 300,443 304,372 — Home equity 1,184 83 255 1,522 109,187 110,709 — Consumer 44 19 — 63 7,613 7,676 — Loans acquired with credit deterioration: Commercial real estate 78 — 826 904 1,633 2,537 — Residential mortgage 223 228 209 660 354 1,014 — Home equity — — 32 32 94 126 — Total $ 10,029 $ 1,205 $ 5,029 $ 16,263 $ 3,497,856 $ 3,514,119 $ 654 (In thousands) 30-59 60-89 Greater Total Past Current Total Loans Loans 2021 Commercial and industrial $ 1,378 $ 62 $ 404 $ 1,844 $ 617,718 $ 619,562 $ 96 Commercial real estate 32 55 769 856 1,665,055 1,665,911 — Commercial real estate - construction — — 205 205 371,333 371,538 205 Residential mortgage 1,246 205 1,002 2,453 319,408 321,861 212 Home equity 403 — 2,377 2,780 107,440 110,220 — Consumer 6 2 2 10 10,419 10,429 2 Loans acquired with credit deterioration: Commercial real estate — 3 1,628 1,631 600 2,231 — Commercial real estate - construction — — — — 1,196 1,196 — Residential mortgage 54 — 818 872 490 1,362 — Home equity — — — — 86 86 — Total $ 3,119 $ 327 $ 7,205 $ 10,651 $ 3,093,745 $ 3,104,396 $ 515 |
Allowance for Loan Losses and Recorded Investment in Financing Receivables | Activity in the allowance for loan losses for the years ended December 31, 2022, 2021, and 2020, and the recorded investment in loans receivable as of December 31, 2022, 2021, and 2020 are as follows: (In thousands) Commercial Commercial Commercial Residential Home Consumer Unallocated Total Balance at December 31, 2019 $ 2,341 $ 6,259 $ 51 $ 417 $ 442 $ 2 $ 3 $ 9,515 Loans charged off (45) (258) (7) (4) — (58) — (372) Recoveries 3 1 2 3 3 27 — 39 Provisions 767 2,653 88 13 62 30 587 4,200 Balance at December 31, 2020 3,066 8,655 134 429 507 1 590 13,382 Loans charged off (866) (1,044) (23) (13) — (42) — (1,988) Recoveries 13 207 8 11 — 19 — 258 Provisions (credits) 1,226 1,597 (81) 32 53 24 94 2,945 Balance at December 31, 2021 3,439 9,415 38 459 560 2 684 14,597 Loans charged off (1) (7) — (25) (1) (97) — (131) Recoveries 13 128 24 2 2 22 — 191 Provisions (credits) 1,142 3,606 (62) 222 100 102 (810) 4,300 Balance at December 31, 2022 $ 4,593 $ 13,142 $ — $ 658 $ 661 $ 29 $ (126) $ 18,957 (In thousands) Allowance for Loan Losses at December 31, 2022 Commercial Commercial Commercial Residential Home Consumer Unallocated Total Collectively evaluated for impairment $ 3,792 $ 13,078 $ — $ 658 $ 639 $ 29 $ (126) $ 18,070 Individually evaluated for impairment 801 64 — — 22 — — 887 $ 4,593 $ 13,142 $ — $ 658 $ 661 $ 29 $ (126) $ 18,957 Loans, Net of Unearned Interest Collectively evaluated for impairment $ 594,820 $ 2,048,074 $ 441,246 $ 303,293 $ 110,424 $ 7,676 $ — $ 3,505,533 Individually evaluated for impairment 1,222 2,323 — 1,079 285 — — 4,909 Acquired with credit deterioration — 2,537 — 1,014 126 — 3,677 $ 596,042 $ 2,052,934 $ 441,246 $ 305,386 $ 110,835 $ 7,676 $ — $ 3,514,119 (In thousands) Allowance for Loan Losses at December 31, 2021 Commercial Commercial Commercial Residential Home Consumer Unallocated Total Collectively evaluated for impairment $ 3,372 $ 9,294 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,409 Individually evaluated for impairment 67 121 — — — — — 188 $ 3,439 $ 9,415 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,597 Loans, Net of Unearned Interest Collectively evaluated for impairment $ 619,254 $ 1,664,770 $ 371,516 $ 320,602 $ 107,843 $ 10,429 $ — $ 3,094,414 Individually evaluated for impairment 308 1,141 22 1,259 2,377 — — 5,107 Acquired with credit deterioration — 2,231 1,196 1,362 86 — — 4,875 $ 619,562 $ 1,668,142 $ 372,734 $ 323,223 $ 110,306 $ 10,429 $ — $ 3,104,396 |
Troubled Debt Restructurings | The recorded investments in troubled debt restructured loans at December 31 are as follows: (In thousands) Pre-Modification Post-Modification Recorded Investment December 31, 2022 Commercial real estate $ 851 $ 815 $ 109 Residential mortgage 590 590 415 $ 1,441 $ 1,405 $ 524 (In thousands) Pre-Modification Post-Modification Recorded Investment December 31, 2021 Commercial and industrial $ 8 $ 8 $ 5 Commercial real estate 1,214 1,115 320 Commercial real estate - construction 40 40 22 Residential mortgage 647 645 472 $ 1,909 $ 1,808 $ 819 |
Schedule of Troubled Debt Restructurings Modified in the Period | The following table summarizes the loans whose terms have been modified resulting in troubled debt restructurings during the year ended December 31, 2020: (In thousands) Number of Contracts Pre-Modification Post-Modification Recorded Investment December 31, 2020 Commercial real estate 1 $ 593 $ 593 $ 535 Residential mortgage 2 51 51 47 3 $ 644 $ 644 $ 582 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | The following is a summary of premises and equipment as of December 31: (In thousands) 2022 2021 Land $ 5,534 $ 5,546 Buildings 26,577 23,462 Furniture, fixtures, and equipment 20,950 16,639 Leasehold improvements 2,013 1,987 Capital expenditures in process 897 3,019 Total cost 55,971 50,653 Less accumulated depreciation (21,500) (17,421) Total premises and equipment $ 34,471 $ 33,232 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | The following table summarizes the changes in goodwill: For the Years Ended ( In thousands ) 2022 2021 Goodwill balance, beginning of year $ 113,835 $ 62,840 Riverview Acquisition — 50,995 Riverview Acquisition measurement period adjustment 36 — Insurance acquisition 360 — Goodwill balance, end of year $ 114,231 $ 113,835 |
Summary of Changes in Intangibles | The following table summarizes the changes in core deposit intangible. For the Years Ended ( In thousands ) 2022 2021 2020 Core deposit intangible balance, beginning of year $ 7,282 $ 4,311 $ 5,526 Riverview (adjustment) acquisition (705) 4,096 — Amortization of core deposit intangibles 1,613 1,125 1,215 Core deposit and other intangible balances, end of year $ 4,964 $ 7,282 $ 4,311 The following table summarizes the changes in the customer list intangible during the years ended December 31: (In thousands) 2022 2021 Customer list intangible balance, beginning of year $ 2,127 $ — Riverview acquisition — 2,160 Insurance acquisition 541 — Amortization of customer list intangible 393 33 Customer list intangible, end of year $ 2,275 $ 2,127 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table shows the amortization expense for future periods: (In thousands) 2023 $ 1,208 2024 1,096 2025 882 2026 677 2027 474 2028-thereafter 627 The following table shows the amortization expense for future periods: (In thousands) 2023 $ 445 2024 399 2025 350 2026 301 2027 252 2028-thereafter 528 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Operating and Finance Lease Right-of-Use Assets and Related Lease Liabilities | Supplemental consolidated balance sheet information for each of the lease classifications as of December 31 was as follows: 2022 2021 (Dollars in thousands) Operating Finance Operating Finance ROU $ 8,798 $ 2,907 $ 9,055 $ 3,087 Lease liability 9,725 3,290 11,363 3,380 Weighted average remaining lease term (in years) 6.30 16.17 7.03 17.17 Weighted average discount rate 3.25 % 3.81 % 3.12 % 3.81 % |
Summary of Lease Costs | 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. Following is a summary of lease costs during the years ended December 31: (In thousands) 2022 2021 2020 Finance lease cost: Amortization of ROU asset $ 180 $ 180 $ 180 Interest expense on lease liability 127 130 133 Total finance lease cost 307 310 313 Operating lease cost 2,057 2,002 2,061 Short-term and equipment lease costs — 29 40 Sublease income (24) (27) (21) Total lease costs $ 2,340 $ 2,314 $ 2,393 Supplemental cash flow information related to operating and finance leases for the years ended December 31 was as follows: (In thousands) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 127 $ 130 Operating cash flows from operating leases 2,939 2,113 Financing cash flows from finance leases 90 87 |
Schedule of Future Minimum Rental Payments of Operating Leases | 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. December 31, 2022 (In thousands) Operating Leases Finance Lease Lease payments due: 2023 $ 2,170 $ 217 2024 2,143 252 2025 1,762 259 2026 1,367 260 2027 984 260 2028 and thereafter 2,313 3,213 Total lease payments 10,739 4,461 Less: imputed interest (1,014) (1,171) Present value of lease liabilities $ 9,725 $ 3,290 |
Finance Lease, Liability, Fiscal Year Maturity | 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. December 31, 2022 (In thousands) Operating Leases Finance Lease Lease payments due: 2023 $ 2,170 $ 217 2024 2,143 252 2025 1,762 259 2026 1,367 260 2027 984 260 2028 and thereafter 2,313 3,213 Total lease payments 10,739 4,461 Less: imputed interest (1,014) (1,171) Present value of lease liabilities $ 9,725 $ 3,290 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposit Liabilities, Type | Deposits consisted of the following as of December 31: (Dollars in thousands) 2022 2021 Noninterest-bearing demand deposits $ 793,939 $ 850,438 Interest-bearing demand deposits 1,024,351 1,066,852 Money market 962,265 1,076,593 Savings 339,231 381,476 Total demand and savings 3,119,786 3,375,359 Time 658,545 626,657 Total deposits $ 3,778,331 $ 4,002,016 Overdrafts $ 401 $ 197 |
Time Deposits By Maturity Date | The scheduled maturities of time deposits at December 31, 2022 were as follows: Time Deposits (In thousands) Less than $250,000 $250,000 or more Maturing in 2023 $ 345,106 $ 93,287 Maturing in 2024 112,255 18,019 Maturing in 2025 50,641 6,930 Maturing in 2026 16,472 1,499 Maturing in 2027 9,429 569 Maturing thereafter 4,338 — $ 538,241 $ 120,304 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Maturities of Long-Term Debt [Abstract] | |
Long-term Debt Outstanding by Due Date | The following table presents a summary of long-term debt as of December 31: (Dollars in thousands) December 31, 2022 December 31, 2021 FHLB fixed rate instruments: Due April 2022, 0.86343% $ — $ 70,000 Due March 2023, 0.7514% — 6,500 Due August 2026, 4.80% 1,088 1,353 Due February 2027, 6.71% 31 37 Total FHLB fixed rate instruments 1,119 77,890 Lease obligations included in long-term debt 3,290 3,380 Total long-term debt $ 4,409 $ 81,270 The aggregate principal amounts due on FHLB fixed rate instruments subsequent to December 31, 2022 are as follows: (In thousands) 2023 $ 284 2024 299 2025 313 2026 221 Thereafter 2 $ 1,119 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amount and Fair Value of Mortgage Banking Derivative Financial Instruments | The notional amount and fair value of derivative financial instruments as of December 31: 2022 2021 (In thousands) Notional Amount Asset (Liability) Fair Value Notional Amount Asset (Liability) Fair Value Interest Rate Lock Commitments Positive Fair Values $ 274 $ 3 $ 13,437 $ 65 Negative Fair Values 5,252 (40) 2,670 (9) Forward Commitments Positive Fair Values 4,750 43 5,750 10 Negative Fair Values — — 6,500 (13) Interest Rate Swaps with Customers Positive Fair Values 16,650 164 79,814 853 Negative Fair Values 107,145 (11,533) 29,763 (955) Interest Rate Swaps with Counterparties Positive Fair Values 107,145 11,533 29,763 955 Negative Fair Values 16,650 (164) 79,814 (853) |
Schedule of Mortgage Banking Derivative Financial Instruments Net, Gains or Losses Recognized Within Other Noninterest Income | The following table presents derivative financial instruments and the amount of the net gains or losses recognized within other noninterest income (In thousands) 2022 2021 Interest Rate Lock Commitments $ (93) $ 56 Forward Commitments 46 32 Total $ (47) $ 88 |
Schedule of Gross Amounts of Commercial Loan Swap Derivatives, Amounts Offset and Carrying Values | The gross amounts of commercial loan swap derivatives, the amounts offset and the carrying values in the Consolidated Balance Sheets, and the collateral pledged to support such agreements are presented below as of December 31: (In thousands) 2022 2021 Interest Rate Swap Contracts - Commercial Loans: Gross amounts recognized $ 11,697 $ 102 Gross amounts offset 11,697 102 Net Amounts Presented in the Consolidated Balance Sheets — — Gross amounts not offset: Cash collateral (1) 1,600 1,600 Net Amounts $ 1,600 $ 1,600 (1) Included in cash and due from banks on the Consolidated Balance Sheet |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: 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: Interest rate swap agreements — 11,697 — 11,697 Mortgage banking derivative assets, net — 6 — 6 Total $ 430 $ 252,056 $ — $ 252,486 2021 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: Mortgage-backed U.S. government agencies $ — $ 49,480 $ — $ 49,480 State and political subdivision obligations — 3,914 — 3,914 Corporate debt securities — 9,468 — 9,468 Equity securities 500 — — 500 Loans held for sale — 11,514 — 11,514 Other assets: Interest rate swap agreements — 102 — 102 Mortgage banking derivative assets, net — 53 — 53 Total $ 500 $ 74,531 $ — $ 75,031 |
Fair Value Measurements, Nonrecurring | The following table illustrates Level 3 financial instruments measured at fair value on a nonrecurring basis as of December 31: (In thousands) 2022 2021 Impaired loans (1) $ 938 $ 508 Foreclosed assets held for sale 43 — (1) Includes impaired loans reporting a specific allocation or that have been partially charged-off. |
Fair Value, by Balance Sheet Grouping | The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of December 31: 2022 Estimated Fair Value (In thousands) Carrying 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 Interest rate swap agreements 11,697 — 11,697 — 11,697 Mortgage banking derivative assets 46 — 46 — 46 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 Interest rate swap agreements 11,697 — 11,697 — 11,697 Mortgage banking derivative liabilities 40 — 40 — 40 2021 Estimated Fair Value (In thousands) Carrying Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 913,752 $ 913,752 $ — $ — $ 913,752 Available-for-sale investment securities 62,862 — 62,862 — 62,862 Held-to-maturity investment securities 329,257 — 330,626 — 330,626 Equity securities 500 500 — — 500 Loans held for sale 11,514 — 11,514 — 11,514 Net loans 3,089,799 — — 3,118,416 3,118,416 Restricted investment in bank stocks 9,134 9,134 — — 9,134 Accrued interest receivable 10,779 10,779 — — 10,779 Interest rate swap agreements 1,808 — 1,808 — 1,808 Mortgage banking derivative assets 75 — 75 — 75 Financial instruments - liabilities Deposits $ 4,002,016 $ — $ 4,046,217 $ — $ 4,046,217 Long-term debt (1) 77,890 — 77,455 — 77,455 Subordinated debt 74,274 — 74,553 — 74,553 Accrued interest payable 1,791 1,791 — — 1,791 Interest rate swap agreements 1,808 — 1,808 — 1,808 Mortgage banking derivative liabilities 22 — 22 — 22 (1) Long-term debt excludes finance lease obligations |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Funded Status | The following tables provide a reconciliation of the changes in the plan’s health and life insurance benefit obligations and fair value of plan assets for the years ended December 31, 2022 and 2021, and a statement of the funded status at December 31, 2022 and 2021. (In thousands) December 31, Change in benefit obligations: 2022 2021 Benefit obligations, January 1 $ 399 $ 342 Service cost 2 2 Interest cost 8 9 Change in experience (30) 73 Change in assumptions (67) (5) Benefit payments (15) (22) Benefit obligations, December 31 $ 297 $ 399 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 15 22 Benefit payments (15) (22) Fair value of plan assets, December 31 $ — $ — Funded status at year end $ (297) $ (399) The following tables provide a reconciliation of the changes in the Director's Plan benefit obligations and fair value of plan assets for the years ended December 31, 2022 and 2021, and a statement of the status at December 31, 2022 and 2021. This Plan is unfunded. (In thousands) December 31, Change in benefit obligations: 2022 2021 Benefit obligations, January 1 $ 1,195 $ 1,142 Service cost 75 47 Interest cost 30 26 Actuarial loss 103 61 Change in assumptions (23) 25 Benefit payments (81) (106) Benefit obligations, December 31 $ 1,299 $ 1,195 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 81 106 Benefit payments (81) (106) Fair value of plan assets, $ — $ — Funded status at year end $ (1,299) $ (1,195) The following tables provide a reconciliation of the changes in the Scottdale Plan’s benefit obligations and fair value of plan assets for the year ended December 31, 2022 and 2021, and a statement of the status at December 31, 2022 and 2021: (In thousands) December 31, Change in benefit obligations: 2022 2021 Benefit obligations, January 1 $ 4,844 $ 5,401 Service cost 69 83 Interest cost 144 134 Actuarial gain (1,096) (309) Settlement payments — (378) Benefit payments (156) (87) Benefit obligations, December 31 $ 3,805 $ 4,844 Change in fair value of plan assets: Fair value of plan assets, January 1 $ 5,302 $ 4,939 Return on plan assets (385) 582 Employer contributions — 285 Benefit payments (156) (87) Administrative expenses (39) (39) Settlement payments — (378) Fair value of plan assets, December 31 $ 4,722 $ 5,302 Funded status at year end $ 917 $ 458 The following tables provide a reconciliation of the changes in the Riverview Plans' benefit obligations and fair value of plan assets for year ended December 31, 2022 and the one-month period beginning with the November 30, 2021 acquisition date and ended December 31, 2021, and a statement of the status at December 31, 2022 and 2021. (In thousands) Change in benefit obligations: 2022 2021 Benefit obligations, January 1 $ 8,165 $ 8,278 Interest cost 223 19 Actuarial gain (1,407) (86) Benefit payments (557) (46) Benefit obligations, December 31 $ 6,424 $ 8,165 Change in fair value of plan assets: Fair value of plan assets, January 1, $ 8,984 $ 8,894 Return on plan assets (1,709) 136 Contributions 2 — Benefit payments (557) (46) Fair value of plan assets, December 31 $ 6,720 $ 8,984 Funded status at year end $ 296 $ 819 |
Schedule of Amounts Recognized in Balance Sheet | The amount recognized in other liabilities on the Consolidated Balance Sheets at December 31, is as follows: (In thousands) 2022 2021 Accrued benefit liability $ 297 $ 399 Amounts recognized in other liabilities on the Consolidated Balance Sheet at December 31 are as follows: (In thousands) 2022 2021 Accrued benefit liability $ 1,299 $ 1,195 Amounts recognized on the Consolidated Balance Sheets at December 31 are as follows: (In thousands) 2022 2021 Accrued pension benefit asset $ (917) $ (458) Amounts recognized in other liabilities on the Consolidated Balance Sheets as of December 31 are as follows: (In thousands) 2022 2021 Accrued pension benefit asset $ (296) $ (819) |
Schedule of Amounts Recognized in Other Comprehensive (Loss) Income | The amounts recognized in accumulated other comprehensive loss (income) as of December 31 consist of: (In thousands) 2022 2021 Net (gain) loss, pretax $ (18) $ 82 Net prior service cost, pretax 10 (15) Amounts recognized in accumulated other comprehensive loss (income) as of December 31 consist of: (In thousands) 2022 2021 Net prior service cost, pretax $ — $ — Net loss, pretax 248 189 Amounts recognized in accumulated other comprehensive loss consist of the following as of December 31: (In thousands) 2022 2021 Unrecognized actuarial gain $ 1,030 $ 602 As of December 31, 2022 amounts related to the Riverview Plans that have been recognized in accumulated other comprehensive loss but not yet recognized as a component of net periodic pension cost are as follows: (In thousands) 2022 2021 Unrecognized actuarial (loss) gain $ (824) $ 176 |
Schedule of Net Periodic Benefit (Income) Costs | The components of net periodic postretirement benefit (income) cost for 2022, 2021 and 2020 are as follows: (In thousands) 2022 2021 2020 Service cost $ 2 $ 2 $ 3 Interest cost 8 9 13 Amortization of prior service cost (24) (25) (25) Amortization of net loss 2 9 — Net periodic postretirement benefit income $ (12) $ (5) $ (9) The components of net periodic retirement cost for 2022, 2021 and 2020 are as follows: (In thousands) 2022 2021 2020 Service cost $ 75 $ 47 $ 49 Interest cost 30 26 31 Amortization of net loss 20 7 — Net periodic retirement cost $ 125 $ 80 $ 80 The components of net periodic retirement cost for December 31 are as follows: (In thousands) 2022 2021 Service cost $ 69 $ 83 Interest cost 144 134 Expected return on plan assets 237 (227) Recognized net actuarial gain (7) — Net periodic retirement income $ (31) $ (10) The components of net periodic pension and postretirement benefit cost for the year ended December 31, 2022 and for November 30, 2021 to December 31, 2021 are as follows: (In thousands) 2022 2021 Interest cost $ 223 $ 19 Expected return on plan assets (522) (46) Net periodic pension benefit $ (299) $ (27) (In thousands) 2022 2021 Service credit $ — $ — Interest cost 1 — Unrecognized gain (1) $ — Net periodic postretirement benefit $ — $ — |
Schedule of Assumptions Used | Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31 are as follows: Weighted-average assumptions: 2022 2021 Discount rate 4.90 % 2.40 % Rate of compensation increase — 2.00 Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31 are as follows: Weighted-average assumptions: 2022 2021 2020 Discount rate 2.40 % 2.25 % 3.00 % Rate of compensation increase — 2.00 2.00 Assumptions used in the measurement of Mid Penn’s benefit obligations at December 31 are as follows: Weighted-average assumptions: 2022 2021 Discount rate 4.90 % 2.40 % Change in consumer price index 7.00 1.40 Assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31 are as follows: Weighted-average assumptions: 2022 2021 2020 Discount rate 4.90 % 2.40 % 2.25 % Change in consumer price index 7.00 1.40 1.00 Assumptions used in the measurement of Mid Penn’s benefit obligations and net periodic pension costs at December 31 are as follows: Weighted-average assumptions: 2022 2021 Discount rate 5.25 % 3.00 % Expected long-term return on plan assets 4.50 4.50 Rate of compensation increases 2.50 2.50 Weighted average assumptions used in the measurement of Mid Penn’s benefit obligations and net periodic pension costs at December 31, 2022 and 2021 are as follows: Pension Benefits Postretirement 2022 Union Citizens Citizens Discount rate 2.83 % 2.83 % 3.00 % Expected long-term return on plan assets 6.00 6.00 n/a 2021 Discount rate 2.75 % 2.75 % 2.75 % Expected long-term return on plan assets 6.25 6.25 n/a |
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates at December 31 are as follows: 2022 2021 2020 Health care cost trend rate assumed for next year 6.50 % 5.50 % 5.50 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.50 % 5.40 % 5.40 % Year that the rate reaches the ultimate trend rate 2026 2024 2024 |
Schedule of Expected Benefit Payments | The following table shows the estimated benefit payments for future periods: (In thousands) 2023 $ 31 2024 27 2025 32 2026 27 2027 25 2028-2032 141 The following table shows the estimated benefit payments for future periods: (In thousands) 2023 $ 110 2024 104 2025 108 2026 106 2027 94 2028-2032 485 The following table shows the estimated benefit payments for future periods. (In thousands) 2023 $ 91 2024 202 2025 251 2026 248 2027 277 2028-2032 1,555 The following table shows the estimated benefit payments for future periods. (In thousands) Pension Benefits Postretirement 2023 $ 551 $ 3 2024 536 3 2025 517 3 2026 504 3 2027 488 2 2028-2032 2,293 9 |
Schedule of Plan's Weighted Average Asset Allocation by Investment Category | The following table presents a summary of the Riverview Plan’s assets at fair value and the weighted-average asset allocations by investment category as of December 31: Estimated Fair Value Percentage of Total Assets Estimated Fair Value Percentage of Total Assets Weighted-average asset allocations: 2022 2021 Cash and cash equivalents $ 69 1.0 % $ 133 1.5 % Mutual fund - equity 2,411 35.9 3,310 36.8 Mutual fund / EFTs - fixed income 3,906 58.1 5,155 57.4 Common / collective trusts equity 334 5.0 386 4.3 $ 6,720 100 % $ 8,984 100 % |
Schedule of Plan Assets at Fair Value | The following table presents a summary of the Scottdale Plan’s assets at fair value and the weighted-average asset allocations by investment category as of December 31: Estimated Fair Value Percentage of Total Assets Estimated Fair Value Percentage of Total Assets (Dollars in thousands) 2022 2021 Cash and cash equivalents $ 108 2.3 % $ 670 12.6 % Common stock 2,773 58.7 3,221 60.8 Corporate bonds 1,841 39.0 1,411 26.6 $ 4,722 100.0 % $ 5,302 100.0 % |
Other Benefit Plans (Tables)
Other Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Details of Compensation Arrangements | The details of the compensation arrangements for the years ended December 31 include: (In thousands) Fully Funded Gross Amounts Compensation Arrangements 2022 2021 Supplemental executive retirement agreements $ 1,316 $ 1,916 Executive deferred compensation agreement 1,638 1,908 Director deferred fee agreement 41 116 Executive employment agreements 1,502 3,349 Separation agreement 194 419 Total compensation agreements $ 4,691 $ 7,708 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Net Deferred Tax Asset | Significant components of the Corporation’s net deferred tax asset at December 31, 2022 and 2021 are shown below. (In thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 3,981 $ 3,065 Loan fees 898 1,409 Deferred compensation 1,115 2,661 Benefit plans 56 98 Unrealized loss on securities 5,137 63 Lease adjustments 193 485 Business combination adjustments 2,066 4,067 Acquired NOL, Section 1231, and charitable contribution carryforwards 686 745 Rabbi Trust 985 — Riverview AMT credits 771 777 Riverview subordinated debt fair value adjustment 353 — Software renewal costs 420 525 Other 892 513 17,553 14,408 Deferred tax liabilities: Depreciation (1,175) (843) Bond accretion (97) (39) Goodwill and intangibles (362) (364) Prepaid expenses (797) (706) Business combination adjustments (398) (547) Benefit plans (1,049) (1,130) (3,878) (3,629) Deferred tax asset, net $ 13,675 $ 10,779 |
Provision for Income Taxes | The provision for income taxes consists of the following: (In thousands) 2022 2021 2020 Current tax provision Federal $ 10,212 $ 6,178 $ 6,340 State 67 70 157 Total current tax provision $ 10,279 $ 6,248 $ 6,497 Deferred tax expense (benefit) Federal $ 2,262 $ 484 $ (1,367) State — — — Total deferred tax expense (benefit) 2,262 484 (1,367) Total provision for income taxes $ 12,541 $ 6,732 $ 5,130 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal income tax provision at the statutory rate of 21% for 2022, 2021 and 2020 to Mid Penn's actual federal income tax provision at its effective rate is as follows: (In thousands) 2022 2021 2020 Provision at the expected statutory rate $ 14,143 $ 7,571 $ 6,581 Low income housing partnership tax credits (929) (853) (861) Effect of tax-exempt income (614) (477) (499) Effect of investment in life insurance (203) (75) (63) Nondeductible merger and acquisition expense 60 364 — State income taxes, net of federal tax benefit 53 55 124 Nondeductible interest 20 14 26 Other items 11 133 (178) Provision for income taxes $ 12,541 $ 6,732 $ 5,130 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Levels And Related Ratios | The following tables present the regulatory capital levels, leverage ratios, and risk-based capital ratios as of December 31: Actual Minimum for To Be Well-Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Mid Penn Bancorp, Inc. 2022 Tier 1 Capital (to Average Assets) $ 410,494 9.6 % $ 171,500 4.0 % N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 410,494 11.2 257,130 7.0 N/A N/A Tier 1 Capital (to Risk Weighted Assets) 410,494 11.2 312,229 8.5 N/A N/A Total Capital (to Risk Weighted Assets) 484,477 13.2 385,695 10.5 N/A N/A Mid Penn Bank 2022 Tier 1 Capital (to Average Assets) $ 463,964 10.8 % $ 171,398 4.0 % $ 214,248 5.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 463,964 12.6 256,895 7.0 238,545 6.5 Tier 1 Capital (to Risk Weighted Assets) 463,964 12.6 311,943 8.5 293,594 8.0 Total Capital (to Risk Weighted Assets) 483,006 13.2 385,342 10.5 366,992 10.0 Mid Penn Bancorp, Inc. 2021 Tier 1 Capital (to Average Assets) $ 374,368 8.1 % $ 185,764 4.0 % N/A N/A Common Equity Tier 1 Capital (to Risk Weighted Assets) 365,084 11.7 217,579 7.0 N/A N/A Tier 1 Capital (to Risk Weighted Assets) 374,368 12.0 264,203 8.5 N/A N/A Total Capital (to Risk Weighted Assets) 452,527 14.6 326,369 10.5 N/A N/A Mid Penn Bank 2021 Tier 1 Capital (to Average Assets) $ 398,773 8.6 % $ 185,721 4.0 % $ 232,151 5.0 % Common Equity Tier 1 Capital (to Risk Weighted Assets) 398,773 12.8 217,446 7.0 201,914 6.5 Tier 1 Capital (to Risk Weighted Assets) 398,773 12.8 264,041 8.5 248,510 8.0 Total Capital (to Risk Weighted Assets) 413,442 13.3 326,169 10.5 $ 310,637 10.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | The following table presents the computation of basic and diluted EPS: (In thousands, except per share data) 2022 2021 2020 Net income $ 54,806 $ 29,319 $ 26,209 Weighted average shares outstanding (basic) 15,912,877 10,806,009 8,439,427 Effect of dilutive unvested restricted stock grants 21,758 13,570 3,665 Weighted average shares outstanding (diluted) 15,934,635 10,819,579 8,443,092 Basic earnings per common share $ 3.44 $ 2.71 $ 3.11 Diluted earnings per common share 3.44 2.71 3.10 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The components of accumulated other comprehensive loss (income), net of taxes, are as follows: (I n thousands ) Unrealized Loss on Defined Benefit Total Balance at December 31, 2019 $ (128) $ 471 $ 343 OCI before reclassifications 494 (503) (9) Amounts reclassified from AOCI (369) (22) (391) Balance - December 31, 2020 (3) (54) (57) OCI before reclassifications (190) 511 321 Amounts reclassified from AOCI (62) (44) (106) Balance - December 31, 2021 (255) 413 158 OCI before reclassifications (19,072) (294) (19,366) Amounts reclassified from AOCI — (8) (8) Balance - December 31, 2022 $ (19,327) $ 111 $ (19,216) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Expense and Related Tax Benefits for Restricted Stock Awards Recognized | The following table presents compensation expense and related tax benefits for restricted stock awards recognized on the Consolidated Statements of Income: (In thousands) 2022 2021 2020 Compensation expense $ 1,142 $ 696 $ 414 Tax benefit (240) (146) (87) Net income effect $ 902 $ 550 $ 327 |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity | The following table presents information regarding the non-vested restricted stock for the year ended December 31, 2022: Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2022 47,322 $ 26.45 Vested (25,175) 27.30 Forfeited (200) 28.45 Granted 46,469 26.55 Non-vested at December 31, 2022 68,416 26.20 |
Parent Company Statements (Tabl
Parent Company Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, (In thousands) 2022 2021 ASSETS Cash and cash equivalents $ 1,849 $ 44,825 Investment in subsidiaries 567,581 524,861 Other assets 845 1,604 Total assets $ 570,275 $ 571,290 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated debt and trust preferred securities $ 56,941 $ 74,274 Other liabilities 1,235 6,940 Shareholders' equity 512,099 490,076 Total liabilities and shareholders' equity $ 570,275 $ 571,290 |
Condensed Statements of Income and Comprehensive Income | CONDENSED STATEMENTS OF INCOME Years Ended December 31, (In thousands) 2022 2021 2020 Income Dividends from subsidiaries $ — $ 3,897 $ 7,537 Other income 1,130 35 13 Total Income 1,130 3,932 7,550 Expenses 7,333 15,391 3,715 (Loss) income before income tax and equity in undistributed earnings of subsidiaries (6,203) (11,459) 3,835 Income Tax Benefit 702 3,140 758 Equity in undistributed earnings of subsidiaries 60,307 37,638 21,616 Net Income $ 54,806 $ 29,319 $ 26,209 |
Condensed Statement of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (In thousands) 2022 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 54,806 $ 29,319 $ 26,209 Equity in undistributed earnings of subsidiaries (60,307) (37,638) (21,616) Stock based compensation 1,142 696 414 Amortization of debt issuance costs 26 26 32 Net change in other assets 759 (1,735) 89 Net change in other liabilities (6,285) 13,356 9,687 Net cash (used in) provided by operating activities (9,859) 4,024 14,815 CASH FLOWS FROM INVESTING ACTIVITIES Net cash paid for acquisition — (792) — Investment in subsidiary (1,787) (27,353) (10,500) Purchases of premises and equipment — — — Net cash used in investing activities (1,787) (28,145) (10,500) CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (12,735) (8,872) (6,504) Employee and Director Stock Purchase Plans stock issuance 364 307 295 Proceeds from issuance of common stock — 70,545 — Treasury stock purchased (2,957) (128) (1,795) Riverview restricted stock (1) 776 — — Subordinated debt and trust preferred securities (redemption) issuance (16,778) (6,870) 17,510 Other, net — (283) — Net cash (used in) provided by financing activities (31,330) 54,699 9,506 Net (decrease) increase in cash and cash equivalents (42,976) 30,578 13,821 Cash and cash equivalents, beginning of year 44,825 14,247 426 Cash and cash equivalents, end of year $ 1,849 $ 44,825 $ 14,247 (1) Additionally, 2,500 shares of restricted stock were paid out in cash resulting in $776 thousand of cash consideration relating to stock awards. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | 39 Months Ended | ||
Dec. 31, 2022 USD ($) Segment Apartment unit | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 31, 2021 | |
Number of reportable segments | Segment | 1 | |||
Cash reserve balances | $ 0 | $ 0 | ||
Loan balance | $ 768,500,000 | $ 1,000,000,000 | ||
Disposal Group, Not Discontinued Operation, Gain Loss On Disposal, Statement Of Income, Extensible List, Not Disclosed Flag | current operations | current operations | ||
Bank premises and equipment held for sale | $ 1,300,000 | $ 3,900,000 | ||
Number of reporting units | unit | 1 | |||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 | |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||
Customer Lists Intangible | ||||
Core deposit intangible, amortization period | 20 years | |||
Enola, Pennsylvania | ||||
Carrying value of investment in limited partnership | $ 58,000 | $ 102,000 | ||
Investment in subsidiaries | $ 58,000 | 102,000 | ||
Dauphin County, Pennsylvania | ||||
Number of apartments under the project | Apartment | 37 | |||
Limited partner capital contribution commitment | $ 7,600,000 | |||
Commitment funding term | 3 years | |||
Project investment amortization period | 10 years | |||
LIHTCs amount awarded for the project | $ 8,500,000 | |||
Low income housing tax credit | 853,000 | 853,000 | 74,000 | |
Dauphin County, Pennsylvania | Other Assets | ||||
Carrying value of investment in limited partnership | 5,200,000 | 6,000,000 | ||
Investment in subsidiaries | 5,200,000 | 6,000,000 | ||
Federal Home Loan Bank of Pittsburgh | ||||
Other interest and dividend income | 289,000 | 345,000 | 360,000 | |
Reserve for Off-balance Sheet Activities | ||||
Valuation allowances and reserves, balance | 85,000 | 72,000 | ||
Equity securities | Accounting Standards Update 2016-01 | ||||
Equity securities, fair value | 430,000 | 500,000 | ||
Equity securities sold | $ 0 | $ 0 | $ 0 | |
Maximum | ||||
Non-residential consumer loans charged off on contractual basis in event of bankruptcy, in period | 120 days | |||
Maximum | Core Deposit Intangible | ||||
Core deposit intangible, amortization period | 10 years | |||
Maximum | Building Assets | ||||
Property, plant and equipment, useful life | 50 years | |||
Maximum | Furniture, fixtures, and equipment | ||||
Property, plant and equipment, useful life | 10 years | |||
Maximum | Land Improvements | ||||
Property, plant and equipment, useful life | 20 years | |||
Maximum | Leasehold improvements | ||||
Property, plant and equipment, useful life | 15 years | |||
Minimum | Building Assets | ||||
Property, plant and equipment, useful life | 5 years | |||
Minimum | Furniture, fixtures, and equipment | ||||
Property, plant and equipment, useful life | 3 years | |||
Minimum | Land Improvements | ||||
Property, plant and equipment, useful life | 10 years | |||
Minimum | Leasehold improvements | ||||
Property, plant and equipment, useful life | 10 years |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 30, 2022 | Nov. 30, 2021 | Nov. 24, 2021 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||||
Restricted stock shares paid out in cash (in shares) | 2,500 | ||||||
Goodwill | $ 114,231 | $ 113,835 | $ 62,840 | ||||
Goodwill, purchase accounting adjustments | 36 | ||||||
Riverview | |||||||
Business Acquisition [Line Items] | |||||||
Shares of acquirer ratio of common stock | 48.33% | ||||||
Fair value of common stock issued | $ 142,192 | ||||||
Restricted stock shares paid out in cash (in shares) | 2,500 | ||||||
Payments to acquire businesses gross | $ 792 | ||||||
Business combination consideration transferred | 142,984 | ||||||
Goodwill | 51,031 | ||||||
Finite-lived intangible assets acquired | 3,400 | ||||||
Customer list intangible | $ 2,200 | ||||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||||||
Fair value of purchased loans | $ 837,505 | ||||||
Pro forma earnings | 57,150 | 35,139 | |||||
Riverview | Excluded Acquisition-related Costs | |||||||
Business Acquisition [Line Items] | |||||||
Pro forma earnings | 3,100 | ||||||
Impairment loss | $ 24,800 | ||||||
Riverview | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of common stock issued | $ 142,200 | ||||||
Per share price (in dollars per share) | $ 31.46 | $ 30.76 | |||||
Options outstanding to purchase common stock (in shares) | 172,964 | ||||||
Riverview | Stock Awards | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses gross | $ 776 | ||||||
Riverview | Fractional Shares | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses gross | $ 16 | ||||||
Brunswick Bancorp Acquisition | Forecast | |||||||
Business Acquisition [Line Items] | |||||||
Equity interests issuable, (in shares) | $ 0.598 | ||||||
Equity interests issuable, (in dollars per share) | $ 18 | ||||||
Managing Partners Insurance Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill acquired | $ 360 | 360 | 0 | ||||
Managing Partners Insurance Acquisitions | Customer Lists Intangible | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible assets acquired | $ 541 | $ 0 | |||||
Finite-lived intangibles acquired | $ 541 |
Business Combinations - Allocat
Business Combinations - Allocation of the Purchase Price (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets acquired: | ||||
Goodwill | $ 114,231 | $ 113,835 | $ 62,840 | |
Cash surrender value of life insurance | $ 50,674 | $ 49,661 | ||
Riverview | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 316,079 | |||
Investment securities | 226 | |||
Restricted stock | 2,209 | |||
Loans | 837,505 | |||
Goodwill | 51,031 | |||
Core deposit intangible | 3,391 | |||
Customer list intangible | 2,160 | |||
Cash surrender value of life insurance | 32,120 | |||
Premises and equipment | 12,524 | |||
Deferred income taxes | 7,116 | |||
Accrued interest receivable | 1,919 | |||
Other assets | 6,641 | |||
Total assets acquired | 1,272,921 | |||
Deposits: | ||||
Noninterest-bearing demand | 182,291 | |||
Interest-bearing demand | 371,283 | |||
Money Market | 152,365 | |||
Savings | 176,294 | |||
Time | 199,414 | |||
Long-term debt | 6,500 | |||
Subordinated debt and trust preferred securities | 36,308 | |||
Accrued interest payable | 439 | |||
Other liabilities | 5,043 | |||
Total liabilities assumed | 1,129,937 | |||
Consideration paid | 142,984 | |||
Cash paid | 792 | |||
Fair value of common stock issued | $ 142,192 |
Business Combinations - Estimat
Business Combinations - Estimated Fair Value of Assets Acquired (Details) - USD ($) $ in Thousands | Nov. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Net assets acquired: | ||||
Cash surrender value of life insurance | $ 50,674 | $ 49,661 | ||
Deposits: | ||||
Goodwill | $ 114,231 | $ 113,835 | $ 62,840 | |
Riverview | ||||
Business Acquisition [Line Items] | ||||
Total purchase price (consideration paid) | $ 142,984 | |||
Net assets acquired: | ||||
Cash and cash equivalents | 316,079 | |||
Investment securities | 226 | |||
Restricted stock | 2,209 | |||
Loans | 837,505 | |||
Core deposit intangible | 3,391 | |||
Customer list intangible | 2,160 | |||
Cash surrender value of life insurance | 32,120 | |||
Premises and equipment | 12,524 | |||
Deferred income taxes | 7,116 | |||
Accrued interest receivable | 1,919 | |||
Other assets | 6,641 | |||
Deposits: | ||||
Noninterest-bearing demand | (182,291) | |||
Interest-bearing demand | (371,283) | |||
Money Market | (152,365) | |||
Savings | (176,294) | |||
Time | (199,414) | |||
Long-term debt | (6,500) | |||
Subordinated debt and trust preferred securities | (36,308) | |||
Accrued interest payable | (439) | |||
Other liabilities | (5,043) | |||
Net assets acquired | 91,953 | |||
Goodwill | $ 51,031 |
Business Combinations - Fair Va
Business Combinations - Fair Value Adjustments (Details) - Riverview $ in Thousands | Nov. 30, 2021 USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at November 30, 2021 | $ 850,920 |
Market rate adjustment | 529 |
Credit fair value adjustment on pools of homogeneous loans | (13,117) |
Credit fair value adjustment on impaired loans | (827) |
Fair value of purchased loans at November 30, 2021 | $ 837,505 |
Business Combinations - Fair _2
Business Combinations - Fair Value of Loans Acquired (Details) - Riverview $ in Thousands | Nov. 30, 2021 USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | $ 5,591 |
Contractual cash flows not expected to be collected (nonaccretable discount) | (1,739) |
Expected cash flows at acquisition | 3,852 |
Interest component of expected cash flows (accretable discount) | (541) |
Fair value of acquired loans | $ 3,311 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Net Interest Income After Provision for Loan Losses | $ 143,533 | $ 105,623 | $ 84,008 |
Noninterest income | 23,657 | 21,533 | 17,908 |
Total Noninterest Expense | $ 99,843 | 91,105 | 70,577 |
Riverview | |||
Business Acquisition [Line Items] | |||
Net Interest Income After Provision for Loan Losses | 147,987 | 116,989 | |
Noninterest income | 32,638 | 26,681 | |
Total Noninterest Expense | 123,475 | 108,531 | |
Net income | $ 57,150 | $ 35,139 | |
Net income per common share | $ 3.73 | $ 2.72 |
Investment Securities - Unreali
Investment Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-sale debt securities: | ||
Amortized Cost | $ 262,342 | $ 63,184 |
Unrealized Gains | 0 | 29 |
Unrealized Losses | 24,464 | 351 |
Available for sale, at fair value | 237,878 | 62,862 |
Held-to-maturity debt securities: | ||
Amortized Cost | 399,494 | 329,257 |
Unrealized Gains | 0 | 2,904 |
Unrealized Losses | 50,989 | 1,535 |
Fair Value | 348,505 | 330,626 |
Amortized Cost | 661,836 | 392,441 |
Unrealized Gains | 0 | 2,933 |
Unrealized Losses | 75,453 | 1,886 |
Fair Value | 586,383 | 393,488 |
U.S. Treasury and U.S. government agencies | ||
Available-for-sale debt securities: | ||
Amortized Cost | 36,528 | |
Unrealized Gains | 0 | |
Unrealized Losses | 1,614 | |
Available for sale, at fair value | 34,914 | |
Held-to-maturity debt securities: | ||
Amortized Cost | 245,671 | 178,136 |
Unrealized Gains | 0 | 26 |
Unrealized Losses | 34,834 | 1,165 |
Fair Value | 210,837 | 176,997 |
Mortgage-backed U.S. government agencies | ||
Available-for-sale debt securities: | ||
Amortized Cost | 185,993 | 49,760 |
Unrealized Gains | 0 | 3 |
Unrealized Losses | 19,078 | 283 |
Available for sale, at fair value | 166,915 | 49,480 |
Held-to-maturity debt securities: | ||
Amortized Cost | 50,710 | 61,157 |
Unrealized Gains | 0 | 440 |
Unrealized Losses | 6,676 | 272 |
Fair Value | 44,034 | 61,325 |
State and political subdivision obligations | ||
Available-for-sale debt securities: | ||
Amortized Cost | 4,354 | 3,899 |
Unrealized Gains | 0 | 26 |
Unrealized Losses | 815 | 11 |
Available for sale, at fair value | 3,539 | 3,914 |
Held-to-maturity debt securities: | ||
Amortized Cost | 87,125 | 75,958 |
Unrealized Gains | 0 | 2,305 |
Unrealized Losses | 8,345 | 27 |
Fair Value | 78,780 | 78,236 |
Corporate debt securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 35,467 | 9,525 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 2,957 | 57 |
Available for sale, at fair value | 32,510 | 9,468 |
Held-to-maturity debt securities: | ||
Amortized Cost | 15,988 | 14,006 |
Unrealized Gains | 0 | 133 |
Unrealized Losses | 1,134 | 71 |
Fair Value | $ 14,854 | $ 14,068 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $ 338,800 | $ 244,800 |
FHLB | ||
Schedule of Investments [Line Items] | ||
Letter of credit outstanding, amount | $ 189,000 | $ 450,900 |
Investment Securities - Schedul
Investment Securities - Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Debt Securities, Available-for-Sale [Line Items] | ||
Available for sale securities, Less than 12 Months: Number of Securities | security | 106 | 30 |
Available for sale securities, Less than 12 Months: Fair Value | $ 194,377 | $ 51,587 |
Available for sale securities, Less than 12 Months: Unrealized Losses | $ 16,314 | $ 351 |
Available for sale securities, 12 Months or More: Number of Securities | security | 30 | 0 |
Available for sale securities, 12 Months or More: Fair Value | $ 40,250 | $ 0 |
Available for sale securities, 12 Months or More: Unrealized Losses | $ 8,150 | $ 0 |
Available for sale securities, Total: Number of Securities | security | 136 | 30 |
Available for sale securities, Total: Fair Value | $ 234,627 | $ 51,587 |
Available for sale securities, Total: Unrealized Losses | $ 24,464 | $ 351 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held to maturity securities, Less than 12 Months: Number of Securities | security | 283 | 138 |
Held to maturity securities, Less than 12 Months: Fair Value | $ 178,268 | $ 201,650 |
Held to maturity securities, Less than 12 Months: Unrealized Losses | $ 18,894 | $ 1,533 |
Held to maturity securities, 12 Months or More: Number of Securities | security | 138 | 1 |
Held to maturity securities, 12 Months or More: Fair Value | $ 165,857 | $ 255 |
Held to maturity securities, 12 Months or More: Unrealized Losses | $ 32,095 | $ 2 |
Held to maturity securities, Total: Number of Securities | security | 421 | 139 |
Held to maturity securities, Total: Fair Value | $ 344,125 | $ 201,905 |
Held to maturity securities, Total: Unrealized Losses | $ 50,989 | $ 1,535 |
Available for sale securities and Held to maturity securities, Less than 12 Months: Number of Securities | security | 389 | 168 |
Available for sale securities and Held to maturity securities, Less than 12 Months: Fair Value | $ 372,645 | $ 253,237 |
Available for sale securities and Held to maturity securities, Less than 12 Months: Unrealized Losses | $ 35,208 | $ 1,884 |
Available for sale securities and Held to maturity securities, 12 Months or More: Number of Securities | security | 168 | 1 |
Available for sale securities and Held to maturity securities, 12 Months or More: Fair Value | $ 206,107 | $ 255 |
Available for sale securities and Held to maturity securities, 12 Months or More: Unrealized Losses | $ 40,245 | $ 2 |
Available for sale securities and Held to maturity securities, Total: Number of Securities | security | 557 | 169 |
Available for sale securities and Held to maturity securities, Total: Fair Value | $ 578,752 | $ 253,492 |
Available for sale securities and Held to maturity securities, Total: Unrealized Losses | $ 75,453 | $ 1,886 |
U.S. Treasury and U.S. government agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available for sale securities, Less than 12 Months: Number of Securities | security | 19 | 24 |
Available for sale securities, Less than 12 Months: Fair Value | $ 34,914 | $ 45,476 |
Available for sale securities, Less than 12 Months: Unrealized Losses | $ 1,614 | $ 283 |
Available for sale securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Available for sale securities, 12 Months or More: Fair Value | $ 0 | $ 0 |
Available for sale securities, 12 Months or More: Unrealized Losses | $ 0 | $ 0 |
Available for sale securities, Total: Number of Securities | security | 19 | 24 |
Available for sale securities, Total: Fair Value | $ 34,914 | $ 45,476 |
Available for sale securities, Total: Unrealized Losses | $ 1,614 | $ 283 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held to maturity securities, Less than 12 Months: Number of Securities | security | 54 | 91 |
Held to maturity securities, Less than 12 Months: Fair Value | $ 84,946 | $ 149,425 |
Held to maturity securities, Less than 12 Months: Unrealized Losses | $ 10,093 | $ 1,165 |
Held to maturity securities, 12 Months or More: Number of Securities | security | 91 | 0 |
Held to maturity securities, 12 Months or More: Fair Value | $ 125,891 | $ 0 |
Held to maturity securities, 12 Months or More: Unrealized Losses | $ 24,741 | $ 0 |
Held to maturity securities, Total: Number of Securities | security | 145 | 91 |
Held to maturity securities, Total: Fair Value | $ 210,837 | $ 149,425 |
Held to maturity securities, Total: Unrealized Losses | $ 34,834 | $ 1,165 |
Mortgage-backed U.S. government agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available for sale securities, Less than 12 Months: Number of Securities | security | 69 | |
Available for sale securities, Less than 12 Months: Fair Value | $ 131,879 | |
Available for sale securities, Less than 12 Months: Unrealized Losses | $ 11,876 | |
Available for sale securities, 12 Months or More: Number of Securities | security | 24 | |
Available for sale securities, 12 Months or More: Fair Value | $ 35,036 | |
Available for sale securities, 12 Months or More: Unrealized Losses | $ 7,202 | |
Available for sale securities, Total: Number of Securities | security | 93 | |
Available for sale securities, Total: Fair Value | $ 166,915 | |
Available for sale securities, Total: Unrealized Losses | $ 19,078 | |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held to maturity securities, Less than 12 Months: Number of Securities | security | 40 | 24 |
Held to maturity securities, Less than 12 Months: Fair Value | $ 13,866 | $ 39,995 |
Held to maturity securities, Less than 12 Months: Unrealized Losses | $ 1,071 | $ 272 |
Held to maturity securities, 12 Months or More: Number of Securities | security | 24 | 0 |
Held to maturity securities, 12 Months or More: Fair Value | $ 30,168 | $ 0 |
Held to maturity securities, 12 Months or More: Unrealized Losses | $ 5,605 | $ 0 |
Held to maturity securities, Total: Number of Securities | security | 64 | 24 |
Held to maturity securities, Total: Fair Value | $ 44,034 | $ 39,995 |
Held to maturity securities, Total: Unrealized Losses | $ 6,676 | $ 272 |
State and political subdivision obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available for sale securities, Less than 12 Months: Number of Securities | security | 6 | 2 |
Available for sale securities, Less than 12 Months: Fair Value | $ 2,521 | $ 1,168 |
Available for sale securities, Less than 12 Months: Unrealized Losses | $ 671 | $ 11 |
Available for sale securities, 12 Months or More: Number of Securities | security | 2 | 0 |
Available for sale securities, 12 Months or More: Fair Value | $ 1,018 | $ 0 |
Available for sale securities, 12 Months or More: Unrealized Losses | $ 144 | $ 0 |
Available for sale securities, Total: Number of Securities | security | 8 | 2 |
Available for sale securities, Total: Fair Value | $ 3,539 | $ 1,168 |
Available for sale securities, Total: Unrealized Losses | $ 815 | $ 11 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held to maturity securities, Less than 12 Months: Number of Securities | security | 185 | 17 |
Held to maturity securities, Less than 12 Months: Fair Value | $ 73,735 | $ 5,302 |
Held to maturity securities, Less than 12 Months: Unrealized Losses | $ 7,413 | $ 25 |
Held to maturity securities, 12 Months or More: Number of Securities | security | 18 | 1 |
Held to maturity securities, 12 Months or More: Fair Value | $ 4,616 | $ 255 |
Held to maturity securities, 12 Months or More: Unrealized Losses | $ 932 | $ 2 |
Held to maturity securities, Total: Number of Securities | security | 203 | 18 |
Held to maturity securities, Total: Fair Value | $ 78,351 | $ 5,557 |
Held to maturity securities, Total: Unrealized Losses | $ 8,345 | $ 27 |
Corporate debt securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available for sale securities, Less than 12 Months: Number of Securities | security | 12 | 4 |
Available for sale securities, Less than 12 Months: Fair Value | $ 25,063 | $ 4,943 |
Available for sale securities, Less than 12 Months: Unrealized Losses | $ 2,153 | $ 57 |
Available for sale securities, 12 Months or More: Number of Securities | security | 4 | 0 |
Available for sale securities, 12 Months or More: Fair Value | $ 4,196 | $ 0 |
Available for sale securities, 12 Months or More: Unrealized Losses | $ 804 | $ 0 |
Available for sale securities, Total: Number of Securities | security | 16 | 4 |
Available for sale securities, Total: Fair Value | $ 29,259 | $ 4,943 |
Available for sale securities, Total: Unrealized Losses | $ 2,957 | $ 57 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held to maturity securities, Less than 12 Months: Number of Securities | security | 4 | 6 |
Held to maturity securities, Less than 12 Months: Fair Value | $ 5,721 | $ 6,928 |
Held to maturity securities, Less than 12 Months: Unrealized Losses | $ 317 | $ 71 |
Held to maturity securities, 12 Months or More: Number of Securities | security | 5 | 0 |
Held to maturity securities, 12 Months or More: Fair Value | $ 5,182 | $ 0 |
Held to maturity securities, 12 Months or More: Unrealized Losses | $ 817 | $ 0 |
Held to maturity securities, Total: Number of Securities | security | 9 | 6 |
Held to maturity securities, Total: Fair Value | $ 10,903 | $ 6,928 |
Held to maturity securities, Total: Unrealized Losses | $ 1,134 | $ 71 |
Investment Securities - Sched_2
Investment Securities - Schedule of Gross Realized Gains (Losses) on Sales of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Securities Financing Transactions Disclosures [Abstract] | |||
Gross realized gains | $ 0 | $ 79 | $ 479 |
Gross realized losses | 0 | 0 | (12) |
Net gains | $ 0 | $ 79 | $ 467 |
Investment Securities - Investm
Investment Securities - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in 1 year or less | $ 250 | |
Due after 1 year but within 5 years | 41,289 | |
Due after 5 years but within 10 years | 31,942 | |
Due after 10 years | 2,868 | |
Available-for-sale securities, amortized cost basis, Total | 76,349 | |
Amortized Cost | 262,342 | $ 63,184 |
Fair Value | ||
Due in 1 year or less | 250 | |
Due after 1 year but within 5 years | 39,865 | |
Due after 5 years but within 10 years | 28,555 | |
Due after 10 years | 2,293 | |
Available-for-sale securities, fair value, Total | 70,963 | |
Available for Sale Securities, Fair Value | 237,878 | 62,862 |
Amortized Cost | ||
Due in 1 year or less | 3,745 | |
Due after 1 year but within 5 years | 87,184 | |
Due after 5 years but within 10 years | 214,469 | |
Due after 10 years | 43,386 | |
Held-to-maturity securities, amortized cost | 348,784 | |
Amortized Cost | 399,494 | 329,257 |
Held-to-maturity debt securities: | ||
Due in 1 year or less | 3,719 | |
Due after 1 year but within 5 years | 81,927 | |
Due after 5 years but within 10 years | 183,635 | |
Due after 10 years | 35,190 | |
Held-to-maturity securities, fair value | 304,471 | |
Held to maturity, fair value | 348,505 | $ 330,626 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 185,993 | |
Fair Value | ||
Mortgage-backed securities | 166,915 | |
Amortized Cost | ||
Mortgage-backed securities | 50,710 | |
Held-to-maturity debt securities: | ||
Mortgage-backed securities | $ 44,034 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Deferred fees and costs | $ 3,900 | $ 6,300 |
Loans, net of unearned interest | 3,514,119 | 3,104,396 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 3,456,553 | 3,016,161 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 21,897 | 46,657 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 35,669 | 41,578 |
Commercial Portfolio | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 596,042 | 619,562 |
Commercial Portfolio | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 2,052,934 | 1,668,142 |
Commercial Portfolio | Commercial real estate - construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 441,246 | 372,734 |
Commercial Portfolio | Pass | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 582,540 | 606,484 |
Commercial Portfolio | Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 2,018,088 | 1,601,196 |
Commercial Portfolio | Pass | Commercial real estate - construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 438,990 | 371,337 |
Commercial Portfolio | Special Mention | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 4,212 | 10,321 |
Commercial Portfolio | Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 12,325 | 35,508 |
Commercial Portfolio | Special Mention | Commercial real estate - construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 2,256 | 0 |
Commercial Portfolio | Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 9,290 | 2,757 |
Commercial Portfolio | Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 22,521 | 31,438 |
Commercial Portfolio | Substandard | Commercial real estate - construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 0 | 1,397 |
Consumer Portfolio Segment | Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 305,386 | 323,223 |
Consumer Portfolio Segment | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 110,835 | 110,306 |
Consumer Portfolio Segment | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 7,676 | 10,429 |
Consumer Portfolio Segment | Pass | Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 299,288 | 319,862 |
Consumer Portfolio Segment | Pass | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 109,971 | 106,853 |
Consumer Portfolio Segment | Pass | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 7,676 | 10,429 |
Consumer Portfolio Segment | Special Mention | Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 3,104 | 294 |
Consumer Portfolio Segment | Special Mention | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 0 | 534 |
Consumer Portfolio Segment | Special Mention | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 0 | 0 |
Consumer Portfolio Segment | Substandard | Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 2,994 | 3,067 |
Consumer Portfolio Segment | Substandard | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 864 | 2,919 |
Consumer Portfolio Segment | Substandard | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | $ 0 | $ 0 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Impaired Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial Portfolio | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | $ 1,222 | $ 308 |
Impaired Loans with Allowance: Unpaid Principal Balance | 1,703 | 339 |
Impaired Loans with Allowance: Related Allowance | 801 | 67 |
Impaired Loans: Total Recorded Investment | 1,222 | 308 |
Impaired Loans: Total Unpaid Principal Balance | 1,721 | 370 |
Commercial Portfolio | Commercial and industrial | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 0 | 0 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 18 | 31 |
Commercial Portfolio | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 230 | 287 |
Impaired Loans with Allowance: Unpaid Principal Balance | 235 | 359 |
Impaired Loans with Allowance: Related Allowance | 64 | 121 |
Impaired Loans: Total Recorded Investment | 4,860 | 3,372 |
Impaired Loans: Total Unpaid Principal Balance | 6,281 | 4,511 |
Commercial Portfolio | Commercial real estate | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 2,093 | 854 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 2,514 | 1,243 |
Commercial Portfolio | Commercial real estate | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 2,537 | 2,231 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 3,532 | 2,909 |
Commercial Portfolio | Commercial real estate - construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Related Allowance | 0 | 0 |
Impaired Loans: Total Recorded Investment | 0 | 1,218 |
Impaired Loans: Total Unpaid Principal Balance | 2 | 1,496 |
Commercial Portfolio | Commercial real estate - construction | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 0 | 22 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 2 | 27 |
Commercial Portfolio | Commercial real estate - construction | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 0 | 1,196 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 0 | 1,469 |
Consumer Portfolio Segment | Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Related Allowance | 0 | 0 |
Impaired Loans: Total Recorded Investment | 2,093 | 2,621 |
Impaired Loans: Total Unpaid Principal Balance | 2,688 | 3,142 |
Consumer Portfolio Segment | Residential mortgage | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1,079 | 1,259 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,129 | 1,295 |
Consumer Portfolio Segment | Residential mortgage | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1,014 | 1,362 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,559 | 1,847 |
Consumer Portfolio Segment | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Allowance: Recorded Investment | 252 | 0 |
Impaired Loans with Allowance: Unpaid Principal Balance | 252 | 0 |
Impaired Loans with Allowance: Related Allowance | 22 | 0 |
Impaired Loans: Total Recorded Investment | 411 | 2,463 |
Impaired Loans: Total Unpaid Principal Balance | 440 | 2,488 |
Consumer Portfolio Segment | Home equity | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 33 | 2,377 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 34 | 2,377 |
Consumer Portfolio Segment | Home equity | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 126 | 86 |
Impaired Loans with No Allowance: Unpaid Principal Balance | $ 154 | $ 111 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commercial Portfolio | Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance: Average Recorded Investment | $ 847 | $ 211 | $ 205 |
Impaired Loans with Allowance: Interest Income Recognized | 0 | 0 | 0 |
Impaired Loans, Average Recorded Investment, Total | 892 | 514 | 1,342 |
Impaired Loans, Interest Income Recognized, Total | 0 | 2 | 0 |
Commercial Portfolio | Commercial and industrial | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 45 | 303 | 1,136 |
Impaired Loans with No Allowance: Interest Income Recognized | 0 | 2 | 0 |
Commercial Portfolio | Commercial and industrial | Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 0 | 1 |
Impaired Loans with No Allowance: Interest Income Recognized | 0 | 0 | 0 |
Commercial Portfolio | Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance: Average Recorded Investment | 167 | 1,011 | 752 |
Impaired Loans with Allowance: Interest Income Recognized | 0 | 0 | 0 |
Impaired Loans, Average Recorded Investment, Total | 3,967 | 4,804 | 11,554 |
Impaired Loans, Interest Income Recognized, Total | 0 | 2 | 5 |
Commercial Portfolio | Commercial real estate | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 907 | 2,308 | 9,379 |
Impaired Loans with No Allowance: Interest Income Recognized | 0 | 2 | 5 |
Commercial Portfolio | Commercial real estate | Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 2,893 | 1,485 | 1,423 |
Impaired Loans with No Allowance: Interest Income Recognized | 0 | 0 | 0 |
Commercial Portfolio | Commercial real estate - construction | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans, Average Recorded Investment, Total | 89 | 148 | 44 |
Impaired Loans, Interest Income Recognized, Total | 0 | 0 | 0 |
Commercial Portfolio | Commercial real estate - construction | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 89 | 26 | 44 |
Impaired Loans with No Allowance: Interest Income Recognized | 0 | 0 | 0 |
Commercial Portfolio | Commercial real estate - construction | Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 0 | 122 | 0 |
Impaired Loans with No Allowance: Interest Income Recognized | 0 | 0 | 0 |
Consumer Portfolio Segment | Residential mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans, Average Recorded Investment, Total | 2,010 | 1,375 | 1,359 |
Impaired Loans, Interest Income Recognized, Total | 23 | 26 | 26 |
Consumer Portfolio Segment | Residential mortgage | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 845 | 974 | 998 |
Impaired Loans with No Allowance: Interest Income Recognized | 23 | 26 | 26 |
Consumer Portfolio Segment | Residential mortgage | Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 1,165 | 401 | 361 |
Impaired Loans with No Allowance: Interest Income Recognized | 0 | 0 | 0 |
Consumer Portfolio Segment | Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Allowance: Average Recorded Investment | 153 | 0 | 0 |
Impaired Loans with Allowance: Interest Income Recognized | 0 | 0 | 0 |
Impaired Loans, Average Recorded Investment, Total | 750 | 2,375 | 1,802 |
Impaired Loans, Interest Income Recognized, Total | 185 | 2 | 0 |
Consumer Portfolio Segment | Home equity | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 468 | 2,367 | 1,801 |
Impaired Loans with No Allowance: Interest Income Recognized | 185 | 2 | 0 |
Consumer Portfolio Segment | Home equity | Financial Asset Acquired with Credit Deterioration | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Allowance: Average Recorded Investment | 129 | 8 | 1 |
Impaired Loans with No Allowance: Interest Income Recognized | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Schedule of Accretion of Purchased Impaired Loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Accretable yield, beginning of period | $ 580 | $ 40 |
Acquisition of impaired loans | 0 | 541 |
Accretable yield amortized to interest income | (261) | (1) |
Accretable yield, end of period | $ 319 | $ 580 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 8,195 | $ 9,547 |
Commercial Portfolio | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1,222 | 308 |
Commercial Portfolio | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 4,864 | 3,372 |
Commercial Portfolio | Commercial real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 0 | 1,218 |
Consumer Portfolio Segment | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1,698 | 2,186 |
Consumer Portfolio Segment | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 411 | $ 2,463 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Loan contract | Dec. 31, 2021 USD ($) Borrower Loan contract | Dec. 31, 2020 USD ($) contract | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing receivable, net | $ 3,495,162 | $ 3,089,799 | |
Loans to certain executive officers, directors, and their related interests | 30,700 | 14,700 | |
Loans to certain executive officers, directors, and their related interests, new loans and advances | 21,200 | ||
Loans to certain executive officers, directors, and their related interests, Repayments | 5,200 | ||
Foreclosure proceedings in process | 122 | 729 | |
Loans and leases receivable, impaired, interest lost on nonaccrual loans | $ 280 | $ 177 | $ 638 |
Number of Contracts | Loan | 0 | 0 | |
Loan modifications to number of borrowers affected by Covid | Borrower | 1,000 | ||
Loans, net of unearned interest | $ 3,514,119 | $ 3,104,396 | |
CARES Act | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans, net of unearned interest | $ 0 | $ 3,600 | |
CARES Act | Maximum | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Qualifying deferment status percentage of loan portfolio | 1% | ||
Entity Loan Modification Program | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 3 |
PPP Loans | Small Business Administration | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing receivable, net | $ 2,600 | $ 111,300 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Loan Portfolio Summarized By The Past Due Status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | $ 3,514,119 | $ 3,104,396 |
Loans Receivable > 90 Days and Accruing | 654 | 515 |
Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 3,677 | 4,875 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 16,263 | 10,651 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 10,029 | 3,119 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,205 | 327 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 5,029 | 7,205 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 3,497,856 | 3,093,745 |
Commercial Portfolio | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 596,042 | 619,562 |
Commercial Portfolio | Commercial and industrial | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 596,042 | 619,562 |
Loans Receivable > 90 Days and Accruing | 654 | 96 |
Commercial Portfolio | Commercial and industrial | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 0 |
Commercial Portfolio | Commercial and industrial | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 3,665 | 1,844 |
Commercial Portfolio | Commercial and industrial | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,808 | 1,378 |
Commercial Portfolio | Commercial and industrial | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 3 | 62 |
Commercial Portfolio | Commercial and industrial | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,854 | 404 |
Commercial Portfolio | Commercial and industrial | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 592,377 | 617,718 |
Commercial Portfolio | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,052,934 | 1,668,142 |
Commercial Portfolio | Commercial real estate | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,050,397 | 1,665,911 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Commercial Portfolio | Commercial real estate | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,537 | 2,231 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Commercial Portfolio | Commercial real estate | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 3,230 | 856 |
Commercial Portfolio | Commercial real estate | Total Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 904 | 1,631 |
Commercial Portfolio | Commercial real estate | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,792 | 32 |
Commercial Portfolio | Commercial real estate | 30-59 Days Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 78 | 0 |
Commercial Portfolio | Commercial real estate | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 55 |
Commercial Portfolio | Commercial real estate | 60-89 Days Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 3 |
Commercial Portfolio | Commercial real estate | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,438 | 769 |
Commercial Portfolio | Commercial real estate | Greater than 90 Days | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 826 | 1,628 |
Commercial Portfolio | Commercial real estate | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,047,167 | 1,665,055 |
Commercial Portfolio | Commercial real estate | Current | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,633 | 600 |
Commercial Portfolio | Commercial real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 441,246 | 372,734 |
Commercial Portfolio | Commercial real estate - construction | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 441,246 | 371,538 |
Loans Receivable > 90 Days and Accruing | 0 | 205 |
Commercial Portfolio | Commercial real estate - construction | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 1,196 |
Loans Receivable > 90 Days and Accruing | 0 | |
Commercial Portfolio | Commercial real estate - construction | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,258 | 205 |
Commercial Portfolio | Commercial real estate - construction | Total Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | |
Commercial Portfolio | Commercial real estate - construction | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,258 | 0 |
Commercial Portfolio | Commercial real estate - construction | 30-59 Days Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | |
Commercial Portfolio | Commercial real estate - construction | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 0 |
Commercial Portfolio | Commercial real estate - construction | 60-89 Days Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | |
Commercial Portfolio | Commercial real estate - construction | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 205 |
Commercial Portfolio | Commercial real estate - construction | Greater than 90 Days | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | |
Commercial Portfolio | Commercial real estate - construction | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 438,988 | 371,333 |
Commercial Portfolio | Commercial real estate - construction | Current | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,196 | |
Consumer Portfolio Segment | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 305,386 | 323,223 |
Consumer Portfolio Segment | Residential mortgage | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 304,372 | 321,861 |
Loans Receivable > 90 Days and Accruing | 0 | 212 |
Consumer Portfolio Segment | Residential mortgage | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,014 | 1,362 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Consumer Portfolio Segment | Residential mortgage | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 3,929 | 2,453 |
Consumer Portfolio Segment | Residential mortgage | Total Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 660 | 872 |
Consumer Portfolio Segment | Residential mortgage | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,642 | 1,246 |
Consumer Portfolio Segment | Residential mortgage | 30-59 Days Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 223 | 54 |
Consumer Portfolio Segment | Residential mortgage | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 872 | 205 |
Consumer Portfolio Segment | Residential mortgage | 60-89 Days Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 228 | 0 |
Consumer Portfolio Segment | Residential mortgage | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 415 | 1,002 |
Consumer Portfolio Segment | Residential mortgage | Greater than 90 Days | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 209 | 818 |
Consumer Portfolio Segment | Residential mortgage | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 300,443 | 319,408 |
Consumer Portfolio Segment | Residential mortgage | Current | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 354 | 490 |
Consumer Portfolio Segment | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 110,835 | 110,306 |
Consumer Portfolio Segment | Home equity | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 110,709 | 110,220 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Consumer Portfolio Segment | Home equity | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 126 | 86 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Consumer Portfolio Segment | Home equity | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,522 | 2,780 |
Consumer Portfolio Segment | Home equity | Total Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 32 | 0 |
Consumer Portfolio Segment | Home equity | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,184 | 403 |
Consumer Portfolio Segment | Home equity | 30-59 Days Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 0 |
Consumer Portfolio Segment | Home equity | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 83 | 0 |
Consumer Portfolio Segment | Home equity | 60-89 Days Past Due | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 0 |
Consumer Portfolio Segment | Home equity | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 255 | 2,377 |
Consumer Portfolio Segment | Home equity | Greater than 90 Days | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 32 | 0 |
Consumer Portfolio Segment | Home equity | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 109,187 | 107,440 |
Consumer Portfolio Segment | Home equity | Current | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 94 | 86 |
Consumer Portfolio Segment | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 7,676 | 10,429 |
Consumer Portfolio Segment | Consumer | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 7,676 | 10,429 |
Loans Receivable > 90 Days and Accruing | 0 | 2 |
Consumer Portfolio Segment | Consumer | Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 0 |
Consumer Portfolio Segment | Consumer | Total Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 63 | 10 |
Consumer Portfolio Segment | Consumer | 30-59 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 44 | 6 |
Consumer Portfolio Segment | Consumer | 60-89 Days Past Due | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 19 | 2 |
Consumer Portfolio Segment | Consumer | Greater than 90 Days | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 2 |
Consumer Portfolio Segment | Consumer | Current | Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | $ 7,613 | $ 10,419 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Allowance For Loan Losses And Recorded Investment In Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning balance | $ 14,597 | $ 13,382 | $ 9,515 |
Loans charged off | (131) | (1,988) | (372) |
Recoveries | 191 | 258 | 39 |
Provisions | 4,300 | 2,945 | 4,200 |
Allowance for Loan Losses, ending balance | 18,957 | 14,597 | 13,382 |
Allowance for Loan Losses at December 31, 2022 | |||
Collectively evaluated for impairment | 18,070 | 14,409 | |
Individually evaluated for impairment | 887 | 188 | |
Loans, Net of Unearned Interest | |||
Collectively evaluated for impairment | 3,505,533 | 3,094,414 | |
Individually evaluated for impairment | 4,909 | 5,107 | |
Loans, net of unearned interest | 3,514,119 | 3,104,396 | |
Financial Asset Acquired with Credit Deterioration | |||
Loans, Net of Unearned Interest | |||
Loans, net of unearned interest | 3,677 | 4,875 | |
Commercial Portfolio | Commercial and industrial | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning balance | 3,439 | 3,066 | 2,341 |
Loans charged off | (1) | (866) | (45) |
Recoveries | 13 | 13 | 3 |
Provisions | 1,142 | 1,226 | 767 |
Allowance for Loan Losses, ending balance | 4,593 | 3,439 | 3,066 |
Allowance for Loan Losses at December 31, 2022 | |||
Collectively evaluated for impairment | 3,792 | 3,372 | |
Individually evaluated for impairment | 801 | 67 | |
Loans, Net of Unearned Interest | |||
Collectively evaluated for impairment | 594,820 | 619,254 | |
Individually evaluated for impairment | 1,222 | 308 | |
Loans, net of unearned interest | 596,042 | 619,562 | |
Commercial Portfolio | Commercial and industrial | Financial Asset Acquired with Credit Deterioration | |||
Loans, Net of Unearned Interest | |||
Loans, net of unearned interest | 0 | 0 | |
Commercial Portfolio | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning balance | 9,415 | 8,655 | 6,259 |
Loans charged off | (7) | (1,044) | (258) |
Recoveries | 128 | 207 | 1 |
Provisions | 3,606 | 1,597 | 2,653 |
Allowance for Loan Losses, ending balance | 13,142 | 9,415 | 8,655 |
Allowance for Loan Losses at December 31, 2022 | |||
Collectively evaluated for impairment | 13,078 | 9,294 | |
Individually evaluated for impairment | 64 | 121 | |
Loans, Net of Unearned Interest | |||
Collectively evaluated for impairment | 2,048,074 | 1,664,770 | |
Individually evaluated for impairment | 2,323 | 1,141 | |
Loans, net of unearned interest | 2,052,934 | 1,668,142 | |
Commercial Portfolio | Commercial real estate | Financial Asset Acquired with Credit Deterioration | |||
Loans, Net of Unearned Interest | |||
Loans, net of unearned interest | 2,537 | 2,231 | |
Commercial Portfolio | Commercial real estate - construction | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning balance | 38 | 134 | 51 |
Loans charged off | 0 | (23) | (7) |
Recoveries | 24 | 8 | 2 |
Provisions | (62) | (81) | 88 |
Allowance for Loan Losses, ending balance | 0 | 38 | 134 |
Allowance for Loan Losses at December 31, 2022 | |||
Collectively evaluated for impairment | 0 | 38 | |
Individually evaluated for impairment | 0 | 0 | |
Loans, Net of Unearned Interest | |||
Collectively evaluated for impairment | 441,246 | 371,516 | |
Individually evaluated for impairment | 0 | 22 | |
Loans, net of unearned interest | 441,246 | 372,734 | |
Commercial Portfolio | Commercial real estate - construction | Financial Asset Acquired with Credit Deterioration | |||
Loans, Net of Unearned Interest | |||
Loans, net of unearned interest | 0 | 1,196 | |
Consumer Portfolio Segment | Residential mortgage | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning balance | 459 | 429 | 417 |
Loans charged off | (25) | (13) | (4) |
Recoveries | 2 | 11 | 3 |
Provisions | 222 | 32 | 13 |
Allowance for Loan Losses, ending balance | 658 | 459 | 429 |
Allowance for Loan Losses at December 31, 2022 | |||
Collectively evaluated for impairment | 658 | 459 | |
Individually evaluated for impairment | 0 | 0 | |
Loans, Net of Unearned Interest | |||
Collectively evaluated for impairment | 303,293 | 320,602 | |
Individually evaluated for impairment | 1,079 | 1,259 | |
Loans, net of unearned interest | 305,386 | 323,223 | |
Consumer Portfolio Segment | Residential mortgage | Financial Asset Acquired with Credit Deterioration | |||
Loans, Net of Unearned Interest | |||
Loans, net of unearned interest | 1,014 | 1,362 | |
Consumer Portfolio Segment | Home equity | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning balance | 560 | 507 | 442 |
Loans charged off | (1) | 0 | 0 |
Recoveries | 2 | 0 | 3 |
Provisions | 100 | 53 | 62 |
Allowance for Loan Losses, ending balance | 661 | 560 | 507 |
Allowance for Loan Losses at December 31, 2022 | |||
Collectively evaluated for impairment | 639 | 560 | |
Individually evaluated for impairment | 22 | 0 | |
Loans, Net of Unearned Interest | |||
Collectively evaluated for impairment | 110,424 | 107,843 | |
Individually evaluated for impairment | 285 | 2,377 | |
Loans, net of unearned interest | 110,835 | 110,306 | |
Consumer Portfolio Segment | Home equity | Financial Asset Acquired with Credit Deterioration | |||
Loans, Net of Unearned Interest | |||
Loans, net of unearned interest | 126 | 86 | |
Consumer Portfolio Segment | Consumer | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning balance | 2 | 1 | 2 |
Loans charged off | (97) | (42) | (58) |
Recoveries | 22 | 19 | 27 |
Provisions | 102 | 24 | 30 |
Allowance for Loan Losses, ending balance | 29 | 2 | 1 |
Allowance for Loan Losses at December 31, 2022 | |||
Collectively evaluated for impairment | 29 | 2 | |
Individually evaluated for impairment | 0 | 0 | |
Loans, Net of Unearned Interest | |||
Collectively evaluated for impairment | 7,676 | 10,429 | |
Individually evaluated for impairment | 0 | 0 | |
Loans, net of unearned interest | 7,676 | 10,429 | |
Consumer Portfolio Segment | Consumer | Financial Asset Acquired with Credit Deterioration | |||
Loans, Net of Unearned Interest | |||
Loans, net of unearned interest | 0 | 0 | |
Unallocated | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan and lease losses, beginning balance | 684 | 590 | 3 |
Loans charged off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provisions | (810) | 94 | 587 |
Allowance for Loan Losses, ending balance | (126) | 684 | $ 590 |
Allowance for Loan Losses at December 31, 2022 | |||
Collectively evaluated for impairment | (126) | 684 | |
Individually evaluated for impairment | 0 | 0 | |
Loans, Net of Unearned Interest | |||
Collectively evaluated for impairment | 0 | 0 | |
Individually evaluated for impairment | 0 | 0 | |
Loans, net of unearned interest | 0 | 0 | |
Unallocated | Financial Asset Acquired with Credit Deterioration | |||
Loans, Net of Unearned Interest | |||
Loans, net of unearned interest | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | $ 1,441 | $ 1,909 |
Post-Modification Outstanding Recorded Investment | 1,405 | 1,808 |
Recorded Investment | 524 | 819 |
Commercial Portfolio | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 8 | |
Post-Modification Outstanding Recorded Investment | 8 | |
Recorded Investment | 5 | |
Commercial Portfolio | Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 851 | 1,214 |
Post-Modification Outstanding Recorded Investment | 815 | 1,115 |
Recorded Investment | 109 | 320 |
Commercial Portfolio | Commercial real estate - construction | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 40 | |
Post-Modification Outstanding Recorded Investment | 40 | |
Recorded Investment | 22 | |
Consumer Portfolio Segment | Residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Outstanding Recorded Investment | 590 | 647 |
Post-Modification Outstanding Recorded Investment | 590 | 645 |
Recorded Investment | $ 415 | $ 472 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Modified Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Loan contract | Dec. 31, 2021 USD ($) Loan contract | Dec. 31, 2020 USD ($) contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Loan | 0 | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 1,441 | $ 1,909 | |
Post-Modification Outstanding Recorded Investment | 1,405 | 1,808 | |
Recorded Investment | $ 524 | $ 819 | |
Entity Loan Modification Program | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 644 | ||
Post-Modification Outstanding Recorded Investment | 644 | ||
Recorded Investment | $ 582 | ||
Commercial Portfolio | Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-Modification Outstanding Recorded Investment | $ 851 | $ 1,214 | |
Post-Modification Outstanding Recorded Investment | 815 | 1,115 | |
Recorded Investment | 109 | 320 | |
Commercial Portfolio | Commercial real estate | Entity Loan Modification Program | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 593 | ||
Post-Modification Outstanding Recorded Investment | 593 | ||
Recorded Investment | $ 535 | ||
Consumer Portfolio Segment | Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-Modification Outstanding Recorded Investment | 590 | 647 | |
Post-Modification Outstanding Recorded Investment | 590 | 645 | |
Recorded Investment | $ 415 | $ 472 | |
Consumer Portfolio Segment | Residential mortgage | Entity Loan Modification Program | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 51 | ||
Post-Modification Outstanding Recorded Investment | 51 | ||
Recorded Investment | $ 47 |
Premises and Equipment - Premis
Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 55,971 | $ 50,653 |
Less accumulated depreciation | (21,500) | (17,421) |
Total premises and equipment | 34,471 | 33,232 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 5,534 | 5,546 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 26,577 | 23,462 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 20,950 | 16,639 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,013 | 1,987 |
Capital expenditures in process | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 897 | $ 3,019 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 4,283 | $ 3,316 | $ 3,204 |
Sale of consumer loans | 2,000 | ||
Liabilities assigned in branch sale | (21,076) | $ 0 | $ 0 |
Furniture, fixtures, and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Sale of furniture, fixtures and equipment | $ 170 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill balance, beginning of year | $ 113,835 | $ 62,840 | |
Goodwill balance, end of year | 114,231 | 113,835 | |
Riverview Acquisition | |||
Goodwill [Roll Forward] | |||
Goodwill acquired | 0 | 50,995 | |
Riverview Acquisition measurement period adjustment | 36 | 0 | |
Managing Partners Insurance Acquisitions | |||
Goodwill [Roll Forward] | |||
Goodwill acquired | $ 360 | $ 360 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Managing Partners Insurance Acquisitions | |||
Goodwill [Line Items] | |||
Goodwill acquired | $ 360 | $ 360 | $ 0 |
Riverview Acquisition | |||
Goodwill [Line Items] | |||
Goodwill acquired | $ 0 | 50,995 | |
Customer Lists Intangible | |||
Goodwill [Line Items] | |||
Core deposit intangible, amortization period | 20 years | ||
Customer Lists Intangible | Managing Partners Insurance Acquisitions | |||
Goodwill [Line Items] | |||
Finite-lived intangible assets acquired | $ 541 | 0 | |
Customer Lists Intangible | Riverview Acquisition | |||
Goodwill [Line Items] | |||
Finite-lived intangible assets acquired | $ 0 | $ 2,160 | |
Core deposit intangible, amortization period | 10 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Changes in Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Roll Forward] | |||
Intangible amortization | $ 2,012 | $ 1,180 | $ 1,398 |
Core Deposit Intangible | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Intangible assets, beginning balance | 7,282 | 4,311 | 5,526 |
Riverview (adjustment) acquisition | (705) | 4,096 | 0 |
Intangible amortization | 1,613 | 1,125 | 1,215 |
Intangible assets, ending balance | 4,964 | 7,282 | 4,311 |
Customer Lists Intangible | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Intangible assets, beginning balance | 2,127 | 0 | |
Intangible amortization | 393 | 33 | |
Intangible assets, ending balance | 2,275 | 2,127 | $ 0 |
Customer Lists Intangible | Riverview Acquisition | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets acquired | 0 | 2,160 | |
Customer Lists Intangible | Managing Partners Insurance Acquisitions | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Finite-lived intangible assets acquired | $ 541 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Core Deposit Intangible | |
Finite Lived Intangible Assets [Line Items] | |
2023 | $ 1,208 |
2024 | 1,096 |
2025 | 882 |
2026 | 677 |
2027 | 474 |
2028-thereafter | 627 |
Customer Lists Intangible | |
Finite Lived Intangible Assets [Line Items] | |
2023 | 445 |
2024 | 399 |
2025 | 350 |
2026 | 301 |
2027 | 252 |
2028-thereafter | $ 528 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Lease | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Lessee Lease Description [Line Items] | |||
Number of leases not yet commenced | Lease | 0 | ||
Operating and Finance Leases Related Party | |||
Lessee Lease Description [Line Items] | |||
Rent expense paid to related parties | $ 274 | $ 274 | $ 269 |
2023 | 274 | ||
2024 | 274 | ||
2025 | 185 | ||
2026 | 178 | ||
2027 | 178 | ||
thereafter | $ 3,100 |
Leases - Summary of Operating a
Leases - Summary of Operating and Finance Lease Right-of-use Assets and Related Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
ROU | $ 8,798 | $ 9,055 |
Lease liability | $ 9,725 | $ 11,363 |
Weighted average remaining lease term (in years) | 6 years 3 months 18 days | 7 years 10 days |
Weighted average discount rate | 3.25% | 3.12% |
Finance Lease | ||
ROU | $ 2,907 | $ 3,087 |
Lease liability | $ 3,290 | $ 3,380 |
Weighted average remaining lease term (in years) | 16 years 2 months 1 day | 17 years 2 months 1 day |
Weighted average discount rate | 3.81% | 3.81% |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost: | |||
Amortization of ROU asset | $ 180 | $ 180 | $ 180 |
Interest expense on lease liability | 127 | 130 | 133 |
Total finance lease cost | 307 | 310 | 313 |
Operating lease cost | 2,057 | 2,002 | 2,061 |
Short-term and equipment lease costs | 0 | 29 | 40 |
Sublease income | (24) | (27) | (21) |
Total lease costs | $ 2,340 | $ 2,314 | $ 2,393 |
Leases - Summary of Cash Paid f
Leases - Summary of Cash Paid for Amounts Included in Measurement of Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from finance leases | $ 127 | $ 130 | |
Operating cash flows from operating leases | 2,939 | 2,113 | |
Financing cash flows from finance leases | $ 90 | $ 87 | $ 83 |
Leases - Summary of Maturity An
Leases - Summary of Maturity Analysis of Operating and Finance Lease Liabilities and Reconciliation of Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 2,170 | |
2024 | 2,143 | |
2025 | 1,762 | |
2026 | 1,367 | |
2027 | 984 | |
2028 and thereafter | 2,313 | |
Total lease payments | 10,739 | |
Less: imputed interest | (1,014) | |
Operating lease liability | 9,725 | $ 11,363 |
Finance Lease | ||
2023 | 217 | |
2024 | 252 | |
2025 | 259 | |
2026 | 260 | |
2027 | 260 | |
2028 and thereafter | 3,213 | |
Total lease payments | 4,461 | |
Less: imputed interest | (1,171) | |
Present value of lease liabilities | $ 3,290 | $ 3,380 |
Deposits - By Type (Details)
Deposits - By Type (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Noninterest-bearing demand deposits | $ 793,939 | $ 850,438 |
Interest-bearing demand deposits | 1,024,351 | 1,066,852 |
Money market | 962,265 | 1,076,593 |
Savings | 339,231 | 381,476 |
Total demand and savings | 3,119,786 | 3,375,359 |
Time | 658,545 | 626,657 |
Total Deposits | 3,778,331 | 4,002,016 |
Overdrafts | $ 401 | $ 197 |
Deposits - Time Deposits By Mat
Deposits - Time Deposits By Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Total | $ 658,545 | $ 626,657 |
Less than $250,000 | ||
Maturing in 2023 | 345,106 | |
Maturing in 2024 | 112,255 | |
Maturing in 2025 | 50,641 | |
Maturing in 2026 | 16,472 | |
Maturing in 2027 | 9,429 | |
Maturing thereafter | 4,338 | |
Total | 538,241 | |
$250,000 or more | ||
Maturing in 2023 | 93,287 | |
Maturing in 2024 | 18,019 | |
Maturing in 2025 | 6,930 | |
Maturing in 2026 | 1,499 | |
Maturing in 2027 | 569 | |
Maturing thereafter | 0 | |
Total | $ 120,304 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Brokered certificates of deposits | $ 100,000,000 | $ 0 |
CDAR deposits | 29,600,000 | 14,400,000 |
Related party deposit liabilities | $ 56,800,000 | $ 65,300,000 |
Short-term Borrowings - Narrati
Short-term Borrowings - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 102,647,000 | $ 0 |
Real estate secured loans | 2,300,000,000 | |
Current borrowing available | 1,300,000,000 | |
Maximum borrowing capacity | 1,600,000,000 | |
Other Correspondent Banks | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 102,600,000 | 0 |
Outstanding drawings | 0 | 0 |
Line of credit facility, remaining borrowing capacity | 35,000,000 | |
FHLB Short-Term Borrowings | ||
Short-term Debt [Line Items] | ||
Outstanding drawings | $ 0 | $ 0 |
Long-term Debt - Long-term Debt
Long-term Debt - Long-term Debt Outstanding by Due Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total FHLB fixed rate instruments | $ 1,119 | $ 77,890 |
Lease obligations included in long-term debt | 3,290 | 3,380 |
Total long-term debt | $ 4,409 | $ 81,270 |
Due in April 2022 | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 0.86343% | 0.86343% |
Long-term debt outstanding | $ 0 | $ 70,000 |
Due in March 2023 | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 0.7514% | 0.7514% |
Long-term debt outstanding | $ 0 | $ 6,500 |
Due in August 2026 | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 4.80% | 4.80% |
Long-term debt outstanding | $ 1,088 | $ 1,353 |
Due in February 2027 | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 6.71% | 6.71% |
Long-term debt outstanding | $ 31 | $ 37 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 Facility | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 4,409 | $ 81,270 | |
Number of lease agreement under non-cancelable finance lease | Facility | 1 | ||
FHLB prepayment | 6,500 | 0 | |
FHLB | |||
Debt Instrument [Line Items] | |||
Letter of credit outstanding, amount | $ 189,000 | $ 450,900 |
Long-term Debt - Aggregate Prin
Long-term Debt - Aggregate Principal Amounts Due (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 284 |
2024 | 299 |
2025 | 313 |
2026 | 221 |
Thereafter | 2 |
Total | $ 1,119 |
Subordinated Debt and Trust P_2
Subordinated Debt and Trust Preferred Securities - Narrative (Details) - USD ($) | 12 Months Ended | |||||||||
Nov. 30, 2021 | Dec. 22, 2020 | Oct. 06, 2020 | Mar. 20, 2020 | Dec. 19, 2017 | Oct. 01, 2017 | Dec. 09, 2015 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Repayments of subordinated debt | $ 16,778,000 | $ 6,870,000 | $ 9,640,000 | |||||||
Subordinated Debt | Subordinated Notes Due December 2030 | ||||||||||
Subordinated debt and trust preferred securities (redemption) issuance | $ 12,200,000 | |||||||||
Debt instrument, interest rate, effective percentage | 4.50% | |||||||||
Interest rate period | 5 years | |||||||||
Debt instrument, interest rate, effective percentage | 4.50% | |||||||||
Debt instrument redemption price percentage | 100% | |||||||||
Notes payable to related parties | 750,000 | 750,000 | ||||||||
Subordinated Debt | Subordinated Notes Due March 2030 | ||||||||||
Subordinated debt and trust preferred securities (redemption) issuance | $ 6,900,000 | $ 15,000,000 | 8,100,000 | |||||||
Debt instrument, interest rate, effective percentage | 4% | |||||||||
Interest rate period | 5 years | |||||||||
Debt instrument, interest rate, effective percentage | 4.25% | |||||||||
Interest payment terms, semi-annually | 5 years | |||||||||
Debt instrument redemption price percentage | 100% | |||||||||
Notes payable to related parties | 1,700,000 | 1,700,000 | ||||||||
Subordinated Debt | Subordinated Notes Due 2028 | ||||||||||
Subordinated debt and trust preferred securities (redemption) issuance | $ 10,000,000 | |||||||||
Debt instrument, interest rate, effective percentage | 5.25% | |||||||||
Interest rate period | 5 years | |||||||||
Notes payable to related parties | $ 1,500,000 | $ 1,500,000 | ||||||||
Subordinated Debt | Subordinated Notes Due 2028 | WSJ Prime Rate | ||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||
Interest payment terms, semi-annually | 5 years | |||||||||
Debt instrument redemption price percentage | 100% | |||||||||
Subordinated Debt | Subordinated Notes Due 2028 | WSJ Prime Rate | Maximum | ||||||||||
Debt instrument, interest rate, effective percentage | 5% | |||||||||
Subordinated Debt | Subordinated Notes Due 2025 | ||||||||||
Subordinated debt and trust preferred securities (redemption) issuance | $ 7,500,000 | |||||||||
Percent treated as tier 2 capital | 60% | |||||||||
Debt instrument, interest rate, effective percentage | 5.15% | |||||||||
Interest rate period | 5 years | |||||||||
Subordinated Debt | Subordinated Notes Due 2025 | WSJ Prime Rate | ||||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||||
Subordinated Debt | Subordinated Notes Due 2025 | WSJ Prime Rate | Maximum | ||||||||||
Debt instrument, interest rate, effective percentage | 4% | |||||||||
Riverview Acquisition | Subordinated Debt | ||||||||||
Debt instrument, interest rate, effective percentage | 5.75% | |||||||||
Sabordinate debt assumed | $ 25,000,000 | |||||||||
Subordinated debt fair value premium | $ 2,300,000 | |||||||||
Riverview Acquisition | Subordinated Debt | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt instrument, basis spread on variable rate | 5.63% | |||||||||
CBT 2017 Notes | Subordinated Debt | ||||||||||
Preferred securities issued, amount | $ 5,200,000 | |||||||||
Debt instrument face value percentage | 100% | |||||||||
CBT 2015 Notes | Subordinated Debt | ||||||||||
Preferred securities issued, amount | $ 4,100,000 | |||||||||
Debt instrument face value percentage | 100% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Amount and Fair Value of Mortgage Banking Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Interest Rate Lock Commitments | Mortgage banking derivative assets, net | Positive | ||
Derivative [Line Items] | ||
Notional Amount | $ 274 | $ 13,437 |
Asset (Liability) Fair Value | 3 | 65 |
Interest Rate Lock Commitments | Mortgage banking derivative assets, net | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 5,252 | 2,670 |
Asset (Liability) Fair Value | (40) | (9) |
Forward Contracts | Mortgage banking derivative assets, net | Positive | ||
Derivative [Line Items] | ||
Notional Amount | 4,750 | 5,750 |
Asset (Liability) Fair Value | 43 | 10 |
Forward Contracts | Mortgage banking derivative assets, net | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 0 | 6,500 |
Asset (Liability) Fair Value | 0 | (13) |
Commercial Loan | Interest Rate Swap with Customers | Positive | ||
Derivative [Line Items] | ||
Notional Amount | 16,650 | 79,814 |
Asset (Liability) Fair Value | 164 | 853 |
Commercial Loan | Interest Rate Swap with Customers | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 107,145 | 29,763 |
Asset (Liability) Fair Value | (11,533) | (955) |
Commercial Loan | Interest Rate Swap with Counterparties | Positive | ||
Derivative [Line Items] | ||
Notional Amount | 107,145 | 29,763 |
Asset (Liability) Fair Value | 11,533 | 955 |
Commercial Loan | Interest Rate Swap with Counterparties | Negative | ||
Derivative [Line Items] | ||
Notional Amount | 16,650 | 79,814 |
Asset (Liability) Fair Value | $ (164) | $ (853) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Mortgage Banking Derivative Financial Instruments Net, Gains or Losses Recognized Within Other Noninterest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other |
Gain (loss) on derivative | $ (47) | $ 88 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Gain (loss) on derivative | (93) | 56 |
Forward Contracts | ||
Derivative [Line Items] | ||
Gain (loss) on derivative | $ 46 | $ 32 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Gross Amounts of Commercial Loan Swap Derivatives, Amounts Offset and Carrying Values (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Net Amounts Presented in the Consolidated Balance Sheets | $ 0 | $ 0 |
Cash collateral | 1,600 | 1,600 |
Net Amounts | 1,600 | 1,600 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Net Amounts Presented in the Consolidated Balance Sheets | 11,697 | 102 |
Interest Rate Swap | Commercial Loan | ||
Derivative [Line Items] | ||
Gross amounts recognized | 11,697 | 102 |
Gross amounts offset | $ 11,697 | $ 102 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 237,878 | $ 62,862 |
Equity securities available for sale, at fair value | 430 | 500 |
Loans held for sale | 2,475 | 11,514 |
Other assets: | 0 | 0 |
Assets, nonrecurring | 252,486 | 75,031 |
Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets: | 11,697 | 102 |
Mortgage banking derivative assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets: | 6 | 53 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Equity securities available for sale, at fair value | 430 | |
Loans held for sale | 0 | 0 |
Other assets: | 0 | 0 |
Assets, nonrecurring | 430 | 500 |
Level 1 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets: | 0 | 0 |
Level 1 | Mortgage banking derivative assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets: | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 237,878 | 62,862 |
Equity securities available for sale, at fair value | 0 | |
Loans held for sale | 2,475 | 11,514 |
Other assets: | 11,697 | 1,808 |
Assets, nonrecurring | 252,056 | 74,531 |
Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets: | 11,697 | 102 |
Level 2 | Mortgage banking derivative assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets: | 6 | 53 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Equity securities available for sale, at fair value | 0 | |
Loans held for sale | 0 | 0 |
Other assets: | 0 | 0 |
Assets, nonrecurring | 0 | 0 |
Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets: | 0 | 0 |
Level 3 | Mortgage banking derivative assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other assets: | 0 | 0 |
U S Treasury And U S Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 34,914 | |
U S Treasury And U S Government Agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | |
U S Treasury And U S Government Agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 34,914 | |
U S Treasury And U S Government Agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | |
Mortgage-backed U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 166,915 | 49,480 |
Mortgage-backed U.S. government agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Mortgage-backed U.S. government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 166,915 | 49,480 |
Mortgage-backed U.S. government agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
State and political subdivision obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 3,539 | 3,914 |
State and political subdivision obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
State and political subdivision obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 3,539 | 3,914 |
State and political subdivision obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 32,510 | 9,468 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 32,510 | 9,468 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 0 | 0 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities available for sale, at fair value | 500 | |
Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities available for sale, at fair value | 500 | |
Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities available for sale, at fair value | 0 | |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities available for sale, at fair value | $ 0 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, nonrecurring | $ 252,486 | $ 75,031 |
Nonrecurring | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, nonrecurring | 938 | 508 |
Nonrecurring | Foreclosed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, nonrecurring | $ 43 | $ 0 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - Measurement Input, Discount Rate - Appraisal of Collateral - Impaired loans - Unobservable Input - Appraisal Adjustments | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 22% | 21% |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 84% | 69% |
Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 55% | 30% |
Fair Value Measurement - Fair_2
Fair Value Measurement - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial instruments - assets | ||
Available for sale, at fair value | $ 237,878 | $ 62,862 |
Held-to-maturity, fair value | 348,505 | 330,626 |
Loans held for sale | 2,475 | 11,514 |
Loan balance | 768,500 | 1,000,000 |
Other assets: | 0 | 0 |
Level 1 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 60,881 | 913,752 |
Available for sale, at fair value | 0 | 0 |
Held-to-maturity, fair value | 0 | 0 |
Equity securities | 430 | 500 |
Loans held for sale | 0 | 0 |
Loan balance | 0 | 0 |
Restricted investment in bank stocks | 8,315 | 9,134 |
Accrued interest receivable | 18,405 | 10,779 |
Other assets: | 0 | 0 |
Mortgage banking derivative assets | 0 | 0 |
Financial instruments - liabilities | ||
Deposits | 0 | 0 |
Short-term debt | 0 | |
Long-term debt | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 2,303 | 1,791 |
Interest rate swap agreements | 0 | 0 |
Mortgage banking derivative liabilities | 0 | 0 |
Level 2 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 0 | 0 |
Available for sale, at fair value | 237,878 | 62,862 |
Held-to-maturity, fair value | 348,505 | 330,626 |
Equity securities | 0 | 0 |
Loans held for sale | 2,475 | 11,514 |
Loan balance | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Other assets: | 11,697 | 1,808 |
Mortgage banking derivative assets | 46 | 75 |
Financial instruments - liabilities | ||
Deposits | 3,761,260 | 4,046,217 |
Short-term debt | 102,647 | |
Long-term debt | 1,069 | 77,455 |
Subordinated debt | 55,917 | 74,553 |
Accrued interest payable | 0 | 0 |
Interest rate swap agreements | 11,697 | 1,808 |
Mortgage banking derivative liabilities | 40 | 22 |
Level 3 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 0 | 0 |
Available for sale, at fair value | 0 | 0 |
Held-to-maturity, fair value | 0 | 0 |
Equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loan balance | 3,439,948 | 3,118,416 |
Restricted investment in bank stocks | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Other assets: | 0 | 0 |
Mortgage banking derivative assets | 0 | 0 |
Financial instruments - liabilities | ||
Deposits | 0 | 0 |
Short-term debt | 0 | |
Long-term debt | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Mortgage banking derivative liabilities | 0 | 0 |
Carrying Amount | ||
Financial instruments - assets | ||
Cash and cash equivalents | 60,881 | 913,752 |
Available for sale, at fair value | 237,878 | 62,862 |
Held-to-maturity, fair value | 399,494 | 329,257 |
Equity securities | 430 | 500 |
Loans held for sale | 2,475 | 11,514 |
Loan balance | 3,495,162 | 3,089,799 |
Restricted investment in bank stocks | 8,315 | 9,134 |
Accrued interest receivable | 18,405 | 10,779 |
Other assets: | 11,697 | 1,808 |
Mortgage banking derivative assets | 46 | 75 |
Financial instruments - liabilities | ||
Deposits | 3,778,331 | 4,002,016 |
Short-term debt | 102,647 | |
Long-term debt | 1,119 | 77,890 |
Subordinated debt | 56,941 | 74,274 |
Accrued interest payable | 2,303 | 1,791 |
Interest rate swap agreements | 11,697 | 1,808 |
Mortgage banking derivative liabilities | 40 | 22 |
Total | ||
Financial instruments - assets | ||
Cash and cash equivalents | 60,881 | 913,752 |
Available for sale, at fair value | 237,878 | 62,862 |
Held-to-maturity, fair value | 348,505 | 330,626 |
Equity securities | 430 | 500 |
Loans held for sale | 2,475 | 11,514 |
Loan balance | 3,439,948 | 3,118,416 |
Restricted investment in bank stocks | 8,315 | 9,134 |
Accrued interest receivable | 18,405 | 10,779 |
Other assets: | 11,697 | 1,808 |
Mortgage banking derivative assets | 46 | 75 |
Financial instruments - liabilities | ||
Deposits | 3,761,260 | 4,046,217 |
Short-term debt | 102,647 | |
Long-term debt | 1,069 | 77,455 |
Subordinated debt | 55,917 | 74,553 |
Accrued interest payable | 2,303 | 1,791 |
Interest rate swap agreements | 11,697 | 1,808 |
Mortgage banking derivative liabilities | $ 40 | $ 22 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2008 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other | Other | |
Postretirement Life Insurance | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, minimum service period requirement | 10 years | 20 years | |
Life insurance coverage amount until age 65 | $ 50 | ||
Decrease in coverage amount after age 65 | 5 | ||
Life insurance coverage amount | $ 5 | ||
Defined Benefit Postretirement Health and Life Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, minimum service period requirement | 10 years | 20 years | |
Defined benefit plan, coverage period | 5 years | ||
Percentage increase in postretirement benefit health insurance reimbursable premium | 36.79% | ||
Defined Benefit Postretirement Health and Life Benefit Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefit health insurance reimbursable premium | $ 5 | ||
Post-Retirement Health Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, minimum service period requirement | 20 years | ||
Defined benefit plan, coverage period | 5 years | ||
Post-Retirement Health Benefit Plan | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefit health insurance reimbursable premium | $ 5 | ||
Defined Benefit Postretirement Health And Life Coverage | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, accumulated benefit obligation | 297 | $ 399 | |
Director's Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, accumulated benefit obligation | 1,300 | 1,200 | |
Cash surrender value of bank owned life insurance | 4,100 | 4,100 | |
Scottdale Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, accumulated benefit obligation | 3,800 | 4,800 | |
Scottdale Defined Benefit Pension Plan | Scottdale Bank and Trust Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement gains recognized | $ 0 | 47 | |
Scottdale Defined Benefit Pension Plan | Maximum | Scottdale Bank and Trust Company | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of target portfolio allocation | 20% | ||
Scottdale Defined Benefit Pension Plan | Maximum | Scottdale Bank and Trust Company | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of target portfolio allocation | 50% | ||
Scottdale Defined Benefit Pension Plan | Maximum | Scottdale Bank and Trust Company | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of target portfolio allocation | 60% | ||
Scottdale Defined Benefit Pension Plan | Minimum | Scottdale Bank and Trust Company | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of target portfolio allocation | 30% | ||
Scottdale Defined Benefit Pension Plan | Minimum | Scottdale Bank and Trust Company | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of target portfolio allocation | 40% | ||
Riverview Defined Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, accumulated benefit obligation | $ 6,400 | $ 8,200 |
Postretirement Benefit Plans _2
Postretirement Benefit Plans - Net Funded Status (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Postretirement Health And Life Coverage | ||||
Change in benefit obligations: | ||||
Benefit obligations, beginning of period | $ 399,000 | $ 342,000 | ||
Service cost | 2,000 | 2,000 | $ 3,000 | |
Interest cost | 8,000 | 9,000 | 13,000 | |
Change in experience | (30,000) | 73,000 | ||
Change in assumptions | (67,000) | (5,000) | ||
Benefit payments | (15,000) | (22,000) | ||
Benefit obligations, end of period | $ 399,000 | 297,000 | 399,000 | 342,000 |
Change in fair value of plan assets: | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Employer contributions | 15,000 | 22,000 | ||
Benefit payments | (15,000) | (22,000) | ||
Fair value of plan assets, end of period | 0 | 0 | 0 | |
Funded status at year end | (399,000) | (297,000) | (399,000) | |
Director's Retirement Plan | ||||
Change in benefit obligations: | ||||
Benefit obligations, beginning of period | 1,195,000 | 1,142,000 | ||
Service cost | 75,000 | 47,000 | 49,000 | |
Interest cost | 30,000 | 26,000 | 31,000 | |
Actuarial loss | 103,000 | 61,000 | ||
Change in assumptions | (23,000) | 25,000 | ||
Benefit payments | (81,000) | (106,000) | ||
Benefit obligations, end of period | 1,195,000 | 1,299,000 | 1,195,000 | 1,142,000 |
Change in fair value of plan assets: | ||||
Fair value of plan assets, beginning of period | 0 | 0 | ||
Employer contributions | 81,000 | 106,000 | ||
Benefit payments | (81,000) | (106,000) | ||
Fair value of plan assets, end of period | 0 | 0 | 0 | 0 |
Funded status at year end | (1,195,000) | (1,299,000) | (1,195,000) | |
Scottdale Defined Benefit Pension Plan | ||||
Change in benefit obligations: | ||||
Benefit obligations, beginning of period | 4,844,000 | 5,401,000 | ||
Service cost | 69,000 | 83,000 | ||
Interest cost | 144,000 | 134,000 | ||
Actuarial loss | (1,096,000) | (309,000) | ||
Settlement payments | 0 | (378,000) | ||
Benefit payments | (156,000) | (87,000) | ||
Benefit obligations, end of period | 4,844,000 | 3,805,000 | 4,844,000 | 5,401,000 |
Change in fair value of plan assets: | ||||
Fair value of plan assets, beginning of period | 5,302,000 | 4,939,000 | ||
Return on plan assets | (385,000) | 582,000 | ||
Employer contributions | 0 | 285,000 | ||
Benefit payments | (156,000) | (87,000) | ||
Administrative expenses | (39,000) | (39,000) | ||
Settlement payments | 0 | (378,000) | ||
Fair value of plan assets, end of period | 5,302,000 | 4,722,000 | 5,302,000 | $ 4,939,000 |
Funded status at year end | 458,000 | 917,000 | 458,000 | |
Riverview Defined Benefit Plan | ||||
Change in benefit obligations: | ||||
Benefit obligations, beginning of period | 8,278,000 | 8,165,000 | ||
Interest cost | 19,000 | 223,000 | ||
Actuarial loss | (86,000) | (1,407,000) | ||
Benefit payments | (46,000) | (557,000) | ||
Benefit obligations, end of period | 8,165,000 | 6,424,000 | 8,165,000 | |
Change in fair value of plan assets: | ||||
Fair value of plan assets, beginning of period | 8,894,000 | 8,984,000 | ||
Return on plan assets | 136,000 | (1,709,000) | ||
Employer contributions | 0 | 2,000 | ||
Benefit payments | (46,000) | (557,000) | ||
Fair value of plan assets, end of period | 8,984,000 | 6,720,000 | 8,984,000 | |
Funded status at year end | $ 819,000 | $ 296,000 | $ 819,000 |
Postretirement Benefit Plans _3
Postretirement Benefit Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Postretirement Health And Life Coverage | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | $ 297 | $ 399 |
Director's Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued benefit liability | 1,299 | 1,195 |
Scottdale Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension benefit asset | (917) | (458) |
Riverview Defined Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension benefit asset | $ (296) | $ (819) |
Postretirement Benefit Plans _4
Postretirement Benefit Plans - Amounts Recognized in Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Postretirement Health And Life Coverage | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss (gain), pretax | $ (18) | $ 82 |
Net prior service cost, pretax | 10 | (15) |
Director's Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss (gain), pretax | 248 | 189 |
Net prior service cost, pretax | 0 | 0 |
Scottdale Defined Benefit Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss (gain), pretax | (1,030) | (602) |
Riverview Defined Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net loss (gain), pretax | $ 824 | $ (176) |
Postretirement Benefit Plans _5
Postretirement Benefit Plans - Net Periodic Benefit (Income) Costs (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognized net actuarial gain | $ (7) | $ 0 | ||
Defined Benefit Postretirement Health And Life Coverage | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 2 | $ 3 | |
Interest cost | 8 | 9 | 13 | |
Amortization of prior service cost | (24) | (25) | (25) | |
Amortization of net loss | 2 | 9 | 0 | |
Net periodic postretirement benefit income | (12) | (5) | (9) | |
Director's Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 75 | 47 | 49 | |
Interest cost | 30 | 26 | 31 | |
Amortization of net loss | 20 | 7 | 0 | |
Net periodic postretirement benefit income | 125 | 80 | $ 80 | |
Scottdale Defined Benefit Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 69 | 83 | ||
Interest cost | 144 | 134 | ||
Expected return on plan assets | 237 | (227) | ||
Net periodic postretirement benefit income | (31) | $ (10) | ||
Riverview Defined Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 19 | 223 | ||
Expected return on plan assets | (46) | (522) | ||
Net periodic postretirement benefit income | (27) | (299) | ||
Riverview Defined Benefit Postretirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | ||
Interest cost | 0 | 1 | ||
Unrecognized gain | 0 | (1) | ||
Net periodic postretirement benefit income | $ 0 | $ 0 |
Postretirement Benefit Plans _6
Postretirement Benefit Plans - Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Postretirement Health And Life Coverage | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Discount rate | 4.90% | 2.40% | |
Rate of compensation increase | 0% | 2% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 2.40% | 2.25% | 3% |
Rate of compensation increase | 0% | 2% | 2% |
Director's Retirement Plan | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Discount rate | 4.90% | 2.40% | |
Change in consumer price index | 7% | 1.40% | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 4.90% | 2.40% | 2.25% |
Change in consumer price index | 7% | 1.40% | 1% |
Scottdale Defined Benefit Pension Plan | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Discount rate | 5.25% | 3% | |
Expected long-term return on plan assets | 4.50% | 4.50% | |
Rate of compensation increase | 2.50% | 2.50% | |
Riverview Defined Benefit Plan | Union | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Discount rate | 2.83% | 2.75% | |
Expected long-term return on plan assets | 6% | 6.25% | |
Riverview Defined Benefit Plan | Citizens | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Discount rate | 2.83% | 2.75% | |
Expected long-term return on plan assets | 6% | 6.25% | |
Riverview Defined Benefit Plan | Postretirement Life Insurance Benefits Citizens | |||
Weighted Average Assumptions Used in Calculating Benefit Obligation | |||
Discount rate | 3% | 2.75% |
Postretirement Benefit Plans _7
Postretirement Benefit Plans - Health Care Cost Trend Rates (Details) - Defined Benefit Postretirement Health And Life Coverage | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year | 6.50% | 5.50% | 5.50% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.50% | 5.40% | 5.40% |
Year that the rate reaches the ultimate trend rate | 2026 | 2024 | 2024 |
Postretirement Benefit Plans _8
Postretirement Benefit Plans - Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Postretirement Health And Life Coverage | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 31 |
2024 | 27 |
2025 | 32 |
2026 | 27 |
2027 | 25 |
2028-2032 | 141 |
Director's Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 110 |
2024 | 104 |
2025 | 108 |
2026 | 106 |
2027 | 94 |
2028-2032 | 485 |
Scottdale Defined Benefit Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 91 |
2024 | 202 |
2025 | 251 |
2026 | 248 |
2027 | 277 |
2028-2032 | 1,555 |
Riverview Defined Benefit Plan | Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 551 |
2024 | 536 |
2025 | 517 |
2026 | 504 |
2027 | 488 |
2028-2032 | 2,293 |
Riverview Defined Benefit Plan | Postretirement Life Insurance Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 3 |
2024 | 3 |
2025 | 3 |
2026 | 3 |
2027 | 2 |
2028-2032 | $ 9 |
Postretirement Benefit Plans _9
Postretirement Benefit Plans - Weighted-Average Asset Allocation By Investment Category (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 |
Riverview Defined Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 6,720,000 | $ 8,984,000 | $ 8,894,000 | |
Percentage of Total Assets | 100% | 100% | ||
Riverview Defined Benefit Plan | Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 69,000 | $ 133,000 | ||
Percentage of Total Assets | 1% | 1.50% | ||
Riverview Defined Benefit Plan | Mutual fund - equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 2,411,000 | $ 3,310,000 | ||
Percentage of Total Assets | 35.90% | 36.80% | ||
Riverview Defined Benefit Plan | Common / collective trusts equity | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 334,000 | $ 386,000 | ||
Percentage of Total Assets | 5% | 4.30% | ||
Riverview Defined Benefit Plan | Mutual fund / EFTs - fixed income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 3,906,000 | $ 5,155,000 | ||
Percentage of Total Assets | 58.10% | 57.40% | ||
Scottdale Defined Benefit Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 4,722,000 | $ 5,302,000 | $ 4,939,000 | |
Percentage of Total Assets | 100% | 100% | ||
Scottdale Defined Benefit Pension Plan | Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 108,000 | $ 670,000 | ||
Percentage of Total Assets | 2.30% | 12.60% | ||
Scottdale Defined Benefit Pension Plan | Corporate debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 1,841,000 | $ 1,411,000 | ||
Percentage of Total Assets | 39% | 26.60% | ||
Scottdale Defined Benefit Pension Plan | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated Fair Value | $ 2,773,000 | $ 3,221,000 | ||
Percentage of Total Assets | 58.70% | 60.80% |
Other Benefit Plans - Narrative
Other Benefit Plans - Narrative (Details) | 12 Months Ended | ||||
Sep. 06, 2022 Employee Year | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Nov. 30, 2021 USD ($) | |
Director's Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred compensation arrangement with individual, recorded liability | $ 1,900,000 | $ 1,600,000 | |||
Split Dollar Life Insurance Arrangements | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Cash surrender value of bank owned life insurance | 1,400,000 | 1,400,000 | |||
Rabbi Trust | Cash | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated Fair Value | 4,900,000 | 7,700,000 | |||
Riverview | Rabbi Trust | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefit plan liabilities related to compensation arrangements | $ 7,700,000 | ||||
Phoenix Bancorp Incorporated | Split Dollar Life Insurance Arrangements | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Cash surrender value of bank owned life insurance | 4,300,000 | 4,200,000 | |||
First Priority Financial Corporation | Split Dollar Life Insurance Arrangements | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Cash surrender value of bank owned life insurance | 3,600,000 | 3,600,000 | |||
Riverview Financial Corporation | Split Dollar Life Insurance Arrangements | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Cash surrender value of bank owned life insurance | 2,000,000 | 2,000,000 | |||
Other Expense | Director's Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred compensation arrangement with individual, compensation expense | 64,000 | 35,000 | $ 42,000 | ||
401(k) Plan | Salaries and Benefits Expense | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, associated expense | 1,400,000 | 1,100,000 | 913,000 | ||
Scottdale Defined Benefit Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, associated expense | 0 | 0 | 0 | ||
Benefit plan liabilities related to compensation arrangements | 3,805,000 | 4,844,000 | 5,401,000 | ||
Estimated Fair Value | 4,722,000 | 5,302,000 | 4,939,000 | ||
Supplemental Executive Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of executive officers covered | Employee | 5 | ||||
Number of other members covered | Employee | 3 | ||||
Normal retirement age | Year | 70 | ||||
Monthly fixed cash benefit | 15 years | ||||
Accrued benefit liability | 1,800,000 | 1,200,000 | |||
Supplemental Executive Retirement Plan | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Annual vesting term | 4 years | ||||
Supplemental Executive Retirement Plan | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Annual vesting term | 10 years | ||||
Supplemental Executive Retirement Plan | Salaries and Benefits Expense | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred compensation arrangement with individual, compensation expense | $ 609,000 | $ 625,000 | $ 299,000 |
Other Benefit Plans - Schedule
Other Benefit Plans - Schedule of Details of Compensation Arrangements (Details) - Rabbi Trust - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total compensation agreements | $ 4,691 | $ 7,708 |
Supplemental executive retirement agreements | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total compensation agreements | 1,316 | 1,916 |
Executive deferred compensation agreement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total compensation agreements | 1,638 | 1,908 |
Director deferred fee agreement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total compensation agreements | 41 | 116 |
Executive employment agreements | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total compensation agreements | 1,502 | 3,349 |
Separation agreement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total compensation agreements | $ 194 | $ 419 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,981 | $ 3,065 |
Loan fees | 898 | 1,409 |
Deferred compensation | 1,115 | 2,661 |
Benefit plans | 56 | 98 |
Unrealized loss on securities | 5,137 | 63 |
Lease adjustments | 193 | 485 |
Business combination adjustments | 2,066 | 4,067 |
Acquired NOL, Section 1231, and charitable contribution carryforwards | 686 | 745 |
Rabbi Trust | 985 | 0 |
Riverview AMT credits | 771 | 777 |
Riverview subordinated debt fair value adjustment | 353 | 0 |
Software renewal costs | 420 | 525 |
Other | 892 | 513 |
Deferred tax assets, gross, total | 17,553 | 14,408 |
Deferred tax liabilities: | ||
Depreciation | (1,175) | (843) |
Bond accretion | (97) | (39) |
Goodwill and intangibles | (362) | (364) |
Prepaid expenses | (797) | (706) |
Business combination adjustments | (398) | (547) |
Benefit plans | (1,049) | (1,130) |
Deferred tax liabilities, gross, total | (3,878) | (3,629) |
Deferred tax asset, net | $ 13,675 | $ 10,779 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 577,000 | ||||
Effective income tax rate reconciliation at federal federal tax benefit | 14,143,000 | $ 7,571,000 | $ 6,581,000 | ||
Charitable contribution carryforwards | 43,000 | 57,000 | |||
Riverview AMT credits | 771,000 | 777,000 | |||
Unrecognized tax benefits that would affect the effective income tax rate if recognized | 0 | ||||
Income tax examination, penalties and interest expense | 0 | 0 | 0 | ||
Income tax examination, penalties and interest accrued | 0 | 0 | |||
CARES Act | |||||
Income Taxes [Line Items] | |||||
Income tax impacts of the components of other comprehensive income | 21% | 34% | |||
Effective income tax rate reconciliation at federal federal tax benefit | 318,000 | ||||
Tax credit carryforwards alternative minimum tax refundable percent | 100% | ||||
Scottdale Bank and Trust Company | CARES Act | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 1,200,000 | ||||
First Priority Financial Corporation | |||||
Income Taxes [Line Items] | |||||
Acquired Section 1231 losses | 314,000 | ||||
Taxable income related to acquisition | 1,900,000 | ||||
First Priority Financial Corporation | CARES Act | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | $ 119,000 | $ 1,200,000 | |||
Riverview Acquisition | |||||
Income Taxes [Line Items] | |||||
Riverview AMT credits | $ 771,000 | ||||
Taxable income related to acquisition | $ 2,000,000 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax provision | |||
Federal | $ 10,212 | $ 6,178 | $ 6,340 |
State | 67 | 70 | 157 |
Total current tax provision | 10,279 | 6,248 | 6,497 |
Deferred tax expense (benefit) | |||
Federal | 2,262 | 484 | (1,367) |
State | 0 | 0 | 0 |
Total deferred tax expense (benefit) | 2,262 | 484 | (1,367) |
Total provision for income taxes | $ 12,541 | $ 6,732 | $ 5,130 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Provision at the expected statutory rate | $ 14,143 | $ 7,571 | $ 6,581 |
Low income housing partnership tax credits | (929) | (853) | (861) |
Effect of tax-exempt income | (614) | (477) | (499) |
Effect of investment in life insurance | (203) | (75) | (63) |
Nondeductible merger and acquisition expense | 60 | 364 | 0 |
State income taxes, net of federal tax benefit | 53 | 55 | 124 |
Nondeductible interest | 20 | 14 | 26 |
Other items | 11 | 133 | (178) |
Total provision for income taxes | $ 12,541 | $ 6,732 | $ 5,130 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 4.50% |
Tier 1 Capital (to Risk Weighted Assets) | 0.060 |
Total Capital (to Risk Weighted Assets) | 0.080 |
Tier 1 Capital (to Average Assets) | 0.040 |
Capital Conservation Buffer Percentage | 2.50% |
Statutory amount available for dividend payments without regulatory approval | $ 60,300 |
Regulatory Matters - Regulatory
Regulatory Matters - Regulatory Capital Levels And Related Ratios (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Capital Adequacy, Ratio | ||
Tier 1 Capital (to Average Assets) | 0.040 | |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 4.50% | |
Tier 1 Capital (to Risk Weighted Assets) | 0.060 | |
Total Capital (to Risk Weighted Assets) | 0.080 | |
Parent Company | ||
Actual, Amount | ||
Tier 1 Capital (to Average Assets) | $ 410,494 | $ 374,368 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 410,494 | 365,084 |
Tier 1 Capital (to Risk Weighted Assets) | 410,494 | 374,368 |
Total Capital (to Risk Weighted Assets) | $ 484,477 | $ 452,527 |
Actual, Ratio | ||
Tier 1 Capital (to Average Assets) | 0.096 | 0.081 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 11.20% | 11.70% |
Tier 1 Capital (to Risk Weighted Assets) | 0.112 | 0.120 |
Total Capital (to Risk Weighted Assets) | 0.132 | 0.146 |
Capital Adequacy, Amount | ||
Tier 1 Capital (to Average Assets) | $ 171,500 | $ 185,764 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 257,130 | 217,579 |
Tier 1 Capital (to Risk Weighted Assets) | 312,229 | 264,203 |
Total Capital (to Risk Weighted Assets) | $ 385,695 | $ 326,369 |
Capital Adequacy, Ratio | ||
Tier 1 Capital (to Average Assets) | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 7% | 7% |
Tier 1 Capital (to Risk Weighted Assets) | 0.085 | 0.085 |
Total Capital (to Risk Weighted Assets) | 0.105 | 0.105 |
Subsidiaries | ||
Actual, Amount | ||
Tier 1 Capital (to Average Assets) | $ 463,964 | $ 398,773 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 463,964 | 398,773 |
Tier 1 Capital (to Risk Weighted Assets) | 463,964 | 398,773 |
Total Capital (to Risk Weighted Assets) | $ 483,006 | $ 413,442 |
Actual, Ratio | ||
Tier 1 Capital (to Average Assets) | 0.108 | 0.086 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 12.60% | 12.80% |
Tier 1 Capital (to Risk Weighted Assets) | 0.126 | 0.128 |
Total Capital (to Risk Weighted Assets) | 0.132 | 0.133 |
Capital Adequacy, Amount | ||
Tier 1 Capital (to Average Assets) | $ 171,398 | $ 185,721 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 256,895 | 217,446 |
Tier 1 Capital (to Risk Weighted Assets) | 311,943 | 264,041 |
Total Capital (to Risk Weighted Assets) | $ 385,342 | $ 326,169 |
Capital Adequacy, Ratio | ||
Tier 1 Capital (to Average Assets) | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 7% | 7% |
Tier 1 Capital (to Risk Weighted Assets) | 0.085 | 0.085 |
Total Capital (to Risk Weighted Assets) | 0.105 | 0.105 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | ||
Banking Regulation, Tier 1 Leverage Capital, Well Capitalized, Minimum | $ 214,248 | $ 232,151 |
Tier One Risk Based Common Equity Capital Required To Be Well Capitalized | 238,545 | 201,914 |
Banking Regulation, Tier 1 Risk-Based Capital, Well Capitalized, Minimum | 293,594 | 248,510 |
Banking Regulation, Total Risk-Based Capital, Well Capitalized, Minimum | $ 366,992 | $ 310,637 |
To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | ||
Tier 1 Capital (to Average Assets) | 0.050 | 0.050 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) | 6.50% | 6.50% |
Tier 1 Capital (to Risk Weighted Assets) | 0.080 | 0.080 |
Total Capital (to Risk Weighted Assets) | 0.100 | 0.100 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Nov. 30, 2021 USD ($) Building Apartment Shop | Jun. 30, 2020 USD ($) Apartment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Riverview | ||||
Other Commitments [Line Items] | ||||
Number of apartments under the project | Apartment | 17 | |||
Limited partner capital contribution commitment | $ 4,400 | |||
Project investment amortization period | 10 years | |||
LIHTCs amount awarded for the project | $ 484 | |||
Total anticipated LIHTCs amount under the housing project | $ 4,800 | |||
Number of buildings under the project | Building | 3 | |||
Number of shops under the project | Shop | 2 | |||
Principal amount of construction loan | $ 3,500 | |||
Debt instrument, interest rate, effective percentage | 5.50% | |||
Term of construction loan | 24 months | |||
Cumberland County, Pennsylvania | ||||
Other Commitments [Line Items] | ||||
Number of apartments under the project | Apartment | 39 | |||
Limited partner capital contribution commitment | $ 10,800 | |||
Project investment amortization period | 10 years | |||
LIHTCs amount awarded for the project | $ 1,200 | |||
Total anticipated LIHTCs amount under the housing project | $ 12,000 | |||
PPP Loans | Small Business Administration | ||||
Other Commitments [Line Items] | ||||
Nonrefundable loan processing fees received | $ 3,800 | $ 38,900 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 01, 2021 | May 04, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of antidilutive shares | 0 | 0 | 0 | |||
Proceeds from issuance of common stock | [1] | $ 0 | $ 70,238 | $ 0 | ||
Riverview | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Common stock issued to Riverview shareholders (in shares) | 4,519,776 | |||||
Follow-on Public Offering | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Common shares issued through follow-on public offering, net of underwriting discounts and offering expenses (in shares) | 2,990,000 | |||||
Common stock, price per share (in dollars per share) | $ 25 | |||||
Proceeds from follow-on common stock public offering | $ 74,800 | |||||
Proceeds from issuance of common stock | $ 70,200 | |||||
[1]Shares issued in offering were net of expenses of $4.6 million. |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 54,806 | $ 29,319 | $ 26,209 |
Weighted average shares outstanding (basic) (in shares) | 15,912,877 | 10,806,009 | 8,439,427 |
Effect of dilutive unvested restricted stock grants (in shares) | 21,758 | 13,570 | 3,665 |
Weighted average shares outstanding (diluted) (in shares) | 15,934,635 | 10,819,579 | 8,443,092 |
Basic Earnings Per Common Share (in dollars per share) | $ 3.44 | $ 2.71 | $ 3.11 |
Diluted earnings per common share (in dollars per share) | $ 3.44 | $ 2.71 | $ 3.10 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 490,076 | $ 255,688 | $ 237,874 |
OCI before reclassifications | (19,366) | 321 | (9) |
Amounts reclassified from AOCI | (8) | (106) | (391) |
Ending balance | 512,099 | 490,076 | 255,688 |
Unrealized Loss on Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (255) | (3) | (128) |
OCI before reclassifications | (19,072) | (190) | 494 |
Amounts reclassified from AOCI | 0 | (62) | (369) |
Ending balance | (19,327) | (255) | (3) |
Defined Benefit Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 413 | (54) | 471 |
OCI before reclassifications | (294) | 511 | (503) |
Amounts reclassified from AOCI | (8) | (44) | (22) |
Ending balance | 111 | 413 | (54) |
Accumulated Other Comprehensive (Loss) Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 158 | (57) | 343 |
Ending balance | $ (19,216) | $ 158 | $ (57) |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Mar. 23, 2022 | |
Dividend Reinvestment Plan | ||
Class of Stock [Line Items] | ||
Shares authorized per plan (in shares) | 300,000 | |
Treasury Stock Repurchase Program | ||
Class of Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 15 | |
Percentage of issued shares based on closing stock price | 3.50% | |
Stock repurchased during period (in shares) | 109,891 | |
Stock repurchased at average price per share (in dollars per share) | $ 26.91 | |
Cumulative stock repurchased during period (in shares) | 208,343 | |
Cumulative stock repurchased at average price per share (in dollars per share) | $ 23.42 | |
Remaining authorized repurchase amount (in shares) | $ 10.1 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Schedule of Compensation Expense and Related Tax Benefits for Restricted Stock Awards Recognized (Details) - 2014 Restricted Stock Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 1,142 | $ 696 | $ 414 |
Tax benefit | (240) | (146) | (87) |
Net income effect | $ 902 | $ 550 | $ 327 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) shares | |
Employee | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted shares, vesting period | 4 years |
Directors | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted shares, vesting period | 12 months |
2014 Restricted Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate shares granted (in shares) | shares | 200,000 |
Unrecognized compensation cost related to all non-vested share-based compensation awards | $ | $ 1.3 |
Weighted average recognition period | 2 years 2 months 12 days |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Schedule of Non-Vested Restricted Stock (Details) - 2014 Restricted Stock Plan | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 47,322 |
Vested (in shares) | shares | (25,175) |
Forfeited (in shares) | shares | (200) |
Shares granted (in shares) | shares | 46,469 |
Ending balance (in shares) | shares | 68,416 |
Weighted-Average Grant Date Fair Value | |
Non-vested at January 1, 2021 (in dollars per share) | $ / shares | $ 26.45 |
Vested (in dollars per share) | $ / shares | 27.30 |
Forfeited (in dollars per share) | $ / shares | 28.45 |
Granted (in dollars per share) | $ / shares | 26.55 |
Non-vested at December 31, 2021 (in dollars per share) | $ / shares | $ 26.20 |
Parent Company Statements - Con
Parent Company Statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and cash equivalents | $ 60,881 | $ 913,752 | ||
Other assets | 41,550 | 28,287 | ||
Total Assets | 4,497,954 | 4,689,425 | ||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||
Subordinated debt and trust preferred securities | 56,941 | 74,274 | ||
Other liabilities | 31,499 | 28,635 | ||
Shareholders' equity | 512,099 | 490,076 | $ 255,688 | $ 237,874 |
Total Liabilities and Shareholders' Equity | 4,497,954 | 4,689,425 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 1,849 | 44,825 | ||
Investment in subsidiaries | 567,581 | 524,861 | ||
Other assets | 845 | 1,604 | ||
Total Assets | 570,275 | 571,290 | ||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||
Subordinated debt and trust preferred securities | 56,941 | 74,274 | ||
Other liabilities | 1,235 | 6,940 | ||
Shareholders' equity | 512,099 | 490,076 | ||
Total Liabilities and Shareholders' Equity | $ 570,275 | $ 571,290 |
Parent Company Statements - C_2
Parent Company Statements - Condensed Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income | |||
Provision for income taxes | $ (12,541) | $ (6,732) | $ (5,130) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | 54,806 | 29,319 | 26,209 |
Parent Company | |||
Income | |||
Dividends from subsidiaries | 0 | 3,897 | 7,537 |
Other income | 1,130 | 35 | 13 |
Total Income | 1,130 | 3,932 | 7,550 |
Expenses | 7,333 | 15,391 | 3,715 |
(Loss) income before income tax and equity in undistributed earnings of subsidiaries | (6,203) | (11,459) | 3,835 |
Provision for income taxes | 702 | 3,140 | 758 |
Equity in undistributed earnings of subsidiaries | 60,307 | 37,638 | 21,616 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 54,806 | $ 29,319 | $ 26,209 |
Parent Company Statements - C_3
Parent Company Statements - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Operating Activities: | ||||||
Net Income | $ 54,806 | $ 29,319 | $ 26,209 | |||
Stock compensation expense | 1,142 | 696 | 414 | |||
Net change in other liabilities | (13,261) | (4,321) | (1,971) | |||
Increase in other liabilities | 2,439 | 13,867 | 3,549 | |||
Net Cash Provided By Operating Activities | 59,991 | 65,899 | 14,069 | |||
Investing Activities: | ||||||
Purchases of premises and equipment | (4,249) | (3,497) | (3,685) | |||
Net Cash (Used In) Provided by Investing Activities | (704,711) | 169,371 | (588,912) | |||
Financing Activities: | ||||||
Dividends paid | (12,735) | (8,872) | (6,504) | |||
Employee and Director Stock Purchase Plans stock issuance | 364 | 307 | 311 | |||
Proceeds from issuance of common stock | [1] | 0 | 70,238 | 0 | ||
Treasury stock purchased | (2,957) | (128) | (1,795) | |||
Riverview restricted stock (1) | [2] | (776) | 0 | 0 | ||
Net cash (used in) provided by financing activities | (208,151) | 374,758 | 739,537 | |||
Net (decrease) increase in cash and cash equivalents | (852,871) | 610,028 | 164,694 | |||
Cash and cash equivalents, beginning of period | 913,752 | 303,724 | 139,030 | |||
Cash and cash equivalents, end of period | $ 60,881 | 913,752 | 303,724 | |||
Restricted stock shares paid out in cash (in shares) | 2,500 | |||||
Common stock issued to Riverview shareholders | $ 776 | [3] | 142,192 | [4] | ||
Parent Company | ||||||
Operating Activities: | ||||||
Net Income | 54,806 | 29,319 | 26,209 | |||
Equity in undistributed earnings of subsidiaries | (60,307) | (37,638) | (21,616) | |||
Stock compensation expense | 1,142 | 696 | 414 | |||
Amortization of debt issuance costs | 26 | 26 | 32 | |||
Net change in other liabilities | 759 | (1,735) | 89 | |||
Increase in other liabilities | (6,285) | 13,356 | 9,687 | |||
Net Cash Provided By Operating Activities | (9,859) | 4,024 | 14,815 | |||
Investing Activities: | ||||||
Net cash paid for acquisition | 0 | (792) | 0 | |||
Investment in subsidiary | (1,787) | (27,353) | (10,500) | |||
Purchases of premises and equipment | 0 | 0 | 0 | |||
Net Cash (Used In) Provided by Investing Activities | (1,787) | (28,145) | (10,500) | |||
Financing Activities: | ||||||
Dividends paid | (12,735) | (8,872) | (6,504) | |||
Proceeds from issuance of common stock | 0 | 70,545 | 0 | |||
Treasury stock purchased | (2,957) | (128) | (1,795) | |||
Riverview restricted stock (1) | (776) | 0 | 0 | |||
Subordinated debt and trust preferred securities (redemption) issuance | (16,778) | (6,870) | 17,510 | |||
Other, net | 0 | (283) | 0 | |||
Net cash (used in) provided by financing activities | (31,330) | 54,699 | 9,506 | |||
Net (decrease) increase in cash and cash equivalents | (42,976) | 30,578 | 13,821 | |||
Cash and cash equivalents, beginning of period | 44,825 | 14,247 | 426 | |||
Cash and cash equivalents, end of period | 1,849 | 44,825 | 14,247 | |||
Parent Company | Employee | ||||||
Financing Activities: | ||||||
Employee and Director Stock Purchase Plans stock issuance | $ 364 | $ 307 | $ 295 | |||
[1]Shares issued in offering were net of expenses of $4.6 million.[2]Additionally, 2,500 shares of restricted stock were paid out in cash resulting in $776 thousand of cash consideration relating to stock awards.[3]Additionally, 2,500 shares of restricted stock were paid out in cash resulting in $776 thousand of cash consideration relating to stock awards.[4]Shares issued on November 30, 2021 as a result of the acquisition of Riverview Financial Corporation ("Riverview"). See "Note 2 - Business Combinations", to the Consolidated Financial Statements for more information. |