Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $1.00 par value per share | |
Trading Symbol | MPB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,689,304 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000879635 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 33,362 | $ 45,435 |
Interest-bearing balances with other financial institutions | 31,801 | 34,668 |
Federal funds sold | 2,922 | 16,660 |
Total cash and cash equivalents | 68,085 | 96,763 |
Investment securities: | ||
HTM, at amortized cost (fair value $351,204 and $357,521) | 396,998 | 399,128 |
AFS, at fair value | 217,632 | 223,555 |
Equity securities available for sale, at fair value | 431 | 438 |
Loans held for sale, at fair value | 4,581 | 3,855 |
Loans, net of unearned interest | 4,317,449 | 4,252,792 |
Less: ACL - Loans | (33,524) | (34,187) |
Net loans | 4,283,925 | 4,218,605 |
Premises and equipment, net | 36,068 | 36,909 |
Operating lease right of use asset | 8,414 | 8,953 |
Finance lease right of use asset | 2,683 | 2,727 |
Cash surrender value of life insurance | 52,997 | 54,497 |
Restricted investment in bank stocks | 17,446 | 16,768 |
Accrued interest receivable | 26,975 | 25,820 |
Deferred income taxes | 22,894 | 24,146 |
Goodwill | 127,031 | 127,031 |
Core deposit and other intangibles, net | 6,051 | 6,479 |
Foreclosed assets held for sale | 5,110 | 293 |
Other assets | 53,058 | 44,825 |
Total Assets | 5,330,379 | 5,290,792 |
Deposits: | ||
Noninterest-bearing demand | 807,861 | 801,312 |
Interest-bearing transaction accounts | 2,082,846 | 2,086,450 |
Time | 1,488,398 | 1,458,450 |
Total Deposits | 4,379,105 | 4,346,212 |
Short-term borrowings | 271,849 | 241,532 |
Long-term debt | 23,941 | 59,003 |
Subordinated debt | 46,201 | 46,354 |
Operating lease liability | 8,683 | 9,285 |
Accrued interest payable | 16,330 | 14,257 |
Other liabilities | 33,302 | 31,799 |
Total Liabilities | 4,779,411 | 4,748,442 |
Shareholders' Equity: | ||
Common stock, par value $1.00 per share; 40,000,000 shares authorized at March 31, 2024 and December 31, 2023; 17,006,359 issued at March 31, 2024 and 16,998,929 at December 31, 2023; 16,565,637 outstanding at March 31, 2024 and 16,573,707 at December 31, 2023 | 17,006 | 16,999 |
Additional paid-in capital | 406,150 | 405,725 |
Retained earnings | 154,801 | 145,982 |
Accumulated other comprehensive loss | (16,947) | (16,637) |
Treasury stock, at cost; 440,722 shares at March 31, 2024 and 425,222 shares at December 31, 2023 | (10,042) | (9,719) |
Total Shareholders’ Equity | 550,968 | 542,350 |
Total Liabilities and Shareholders' Equity | $ 5,330,379 | $ 5,290,792 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity, at fair value | $ 351,204 | $ 357,521 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued (in shares) | 17,006,359 | 16,998,929 |
Common stock, outstanding (in shares) | 16,565,637 | 16,573,707 |
Treasury stock (in shares) | 440,722 | 425,222 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INTEREST INCOME | ||
Loans, including fees | $ 63,236 | $ 45,865 |
Investment securities: | ||
Taxable | 4,040 | 3,874 |
Tax-exempt | 376 | 389 |
Other interest-bearing balances | 403 | 53 |
Federal funds sold | 136 | 45 |
Total Interest Income | 68,191 | 50,226 |
INTEREST EXPENSE | ||
Deposits | 26,332 | 12,001 |
Short-term borrowings | 4,446 | 1,490 |
Long-term and subordinated debt | 957 | 686 |
Total Interest Expense | 31,735 | 14,177 |
Net Interest Income | 36,456 | 36,049 |
(Benefit)/Provision for credit losses | (937) | 719 |
Net Interest Income After (Benefit)/Provision for Credit Losses | 37,393 | 35,330 |
NONINTEREST INCOME | ||
Net gain on sales of SBA loans | 107 | 0 |
Earnings from cash surrender value of life insurance | 284 | 254 |
Other | 2,436 | 940 |
Total Noninterest Income | 5,837 | 4,325 |
NONINTEREST EXPENSE | ||
Salaries and employee benefits | 15,462 | 13,844 |
Software licensing and utilization | 2,120 | 1,946 |
Occupancy, net | 1,982 | 1,886 |
Equipment | 1,222 | 1,251 |
Shares tax | 997 | 899 |
Legal and professional fees | 998 | 800 |
ATM/card processing | 534 | 493 |
Intangible amortization | 428 | 344 |
FDIC Assessment | 945 | 340 |
Merger and acquisition | 0 | 224 |
Other | 3,832 | 3,814 |
Total Noninterest Expense | 28,520 | 25,841 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 14,710 | 13,814 |
Provision for income taxes | 2,577 | 2,587 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 12,133 | $ 11,227 |
PER COMMON SHARE DATA: | ||
Basic Earnings Per Common Share (in dollars per share) | $ 0.73 | $ 0.71 |
Diluted earnings per common share (in dollars per share) | $ 0.73 | $ 0.70 |
Weighted average common shares outstanding (basic) (in shares) | 16,567,902 | 15,886,186 |
Weighted average common shares outstanding (diluted) (in shares) | 16,613,373 | 15,931,121 |
Fiduciary and wealth management | ||
NONINTEREST INCOME | ||
Non-interest Income | $ 1,132 | $ 1,236 |
ATM debit card interchange | ||
NONINTEREST INCOME | ||
Non-interest Income | 945 | 1,056 |
Service charges on deposits | ||
NONINTEREST INCOME | ||
Non-interest Income | 509 | 435 |
Mortgage banking | ||
NONINTEREST INCOME | ||
Non-interest Income | 424 | 384 |
Mortgage hedging | ||
NONINTEREST INCOME | ||
Non-interest Income | $ 0 | $ 20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 12,133 | $ 11,227 | |
Other comprehensive (loss)/income: | |||
Unrealized (losses) arising during the period on available for sale securities, net of income tax costs | [1] | (1,711) | 1,977 |
Unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges, net of income tax benefit | [1] | 1,410 | (128) |
Change in defined benefit plans, net of income tax (cost) benefit | [1],[2] | 8 | 5 |
Reclassification adjustment for settlement losses and other activity related to benefit plans, net of income taxes | [1],[3] | (17) | (12) |
Total other comprehensive (loss)/income | (310) | 1,842 | |
Total comprehensive income | $ 11,823 | $ 13,069 | |
[1] The income tax impacts of the components of other comprehensive income are calculated using a 21% statutory tax rate. The reclassification adjustment for 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 total noninterest income. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gains (losses) arising during period on available for sale securities, income tax (cost) benefit | $ 455 | $ (526) |
Unrealized holding losses arising during the period on interest rate derivatives used in cash flow hedges, income tax benefit | (375) | 34 |
Change in defined benefit plans, expense (benefit) | (2) | 1 |
Reclassification adjustment for settlement losses and other activity related to benefit plans, benefit (expense) | $ 5 | $ 3 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | [1] | Accumulated Other Comprehensive (Loss) Income | Treasury Stock |
Balance (in shares) at Dec. 31, 2022 | 16,094,486 | |||||||||
Balance at Dec. 31, 2022 | $ 512,099 | $ (11,548) | $ 16,094 | $ 386,987 | $ 133,114 | $ (11,548) | $ (19,216) | $ (4,880) | ||
Net income | 11,227 | 11,227 | ||||||||
Total other comprehensive income (loss), net of taxes | 1,842 | 1,842 | ||||||||
Common stock cash dividends declared - $0.20 per share | (3,176) | (3,176) | ||||||||
Employee Stock Purchase Plan (in shares) | 2,217 | |||||||||
Employee Stock Purchase Plan | 57 | $ 2 | 55 | |||||||
Director Stock Purchase Plan (in shares) | 1,651 | |||||||||
Director Stock Purchase Plan | 43 | $ 2 | 41 | |||||||
Restricted stock activity | 249 | 249 | ||||||||
Balance (in shares) at Mar. 31, 2023 | 16,098,354 | |||||||||
Balance at Mar. 31, 2023 | 510,793 | $ 16,098 | 387,332 | 129,617 | (17,374) | (4,880) | ||||
Balance (in shares) at Dec. 31, 2023 | 16,998,929 | |||||||||
Balance at Dec. 31, 2023 | 542,350 | $ 16,999 | 405,725 | 145,982 | (16,637) | (9,719) | ||||
Net income | 12,133 | 12,133 | ||||||||
Total other comprehensive income (loss), net of taxes | (310) | (310) | ||||||||
Common stock cash dividends declared - $0.20 per share | (3,314) | (3,314) | ||||||||
Repurchased stock | (323) | (323) | ||||||||
Employee Stock Purchase Plan (in shares) | 5,653 | |||||||||
Employee Stock Purchase Plan | 112 | $ 5 | 107 | |||||||
Director Stock Purchase Plan (in shares) | 1,777 | |||||||||
Director Stock Purchase Plan | 36 | $ 2 | 34 | |||||||
Restricted stock activity | 284 | 284 | ||||||||
Balance (in shares) at Mar. 31, 2024 | 17,006,359 | |||||||||
Balance at Mar. 31, 2024 | $ 550,968 | $ 17,006 | $ 406,150 | $ 154,801 | $ (16,947) | $ (10,042) | ||||
[1]The Corporation adopted ASU 2016-13 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock cash dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Activities: | ||
Net Income | $ 12,133 | $ 11,227 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
(Benefit)/Provision for credit losses | (937) | 719 |
Depreciation | 1,192 | 1,202 |
Amortization of intangibles | 428 | 344 |
Net amortization of security discounts/premiums | 102 | 127 |
Noncash operating lease expense | 539 | 509 |
Amortization of finance lease right of use asset | 44 | 45 |
Earnings on cash surrender value of life insurance | (284) | (254) |
Mortgage loans originated for sale | (16,808) | (24,615) |
Proceeds from sales of mortgage loans originated for sale | 16,506 | 24,797 |
Gain on sale of mortgage loans | (424) | (384) |
SBA loans originated for sale | (1,553) | 0 |
Proceeds from sales of SBA loans originated for sale | 1,446 | 0 |
Gain on sale of SBA loans | (107) | 0 |
Gain on sale of property, plant, and equipment | (32) | (31) |
Accretion of subordinated debt | (153) | (147) |
Stock compensation expense | 284 | 249 |
Change in deferred income tax benefit | 1,402 | 706 |
Increase accrued interest receivable | (1,155) | (800) |
Decrease (Increase) in other assets | (3,484) | 775 |
Increase (decrease) in accrued interest payable | 2,073 | 3,506 |
Decrease in operating lease liability | (602) | (580) |
(Decrease) Increase in other liabilities | 1,799 | (4,217) |
Net Cash Provided By Operating Activities | 12,409 | 13,178 |
Investing Activities: | ||
Proceeds from the maturity or call of available-for-sale securities | 3,741 | 3,743 |
Proceeds from the maturity or call of held-to-maturity securities | 2,045 | 2,611 |
Stock dividends of FHLB and other bank stock | 239 | 110 |
(Purchases) reduction of restricted investment in bank stock | (917) | 164 |
Net increase in loans | (68,987) | (97,156) |
Purchases of bank premises and equipment | (351) | (922) |
Proceeds from the sale of premises and equipment | 32 | 31 |
Net change in investments in tax credits and other partnerships | (1,548) | (2,174) |
Net Cash Used in Investing Activities | (65,746) | (93,593) |
Financing Activities: | ||
Net increase in deposits | 32,893 | 99,750 |
Common stock dividends paid | (3,314) | (3,176) |
Proceeds from Employee and Director Stock Purchase Plan stock issuance | 148 | 100 |
Treasury stock purchased | (323) | 0 |
Net change in finance lease liability | (24) | (23) |
Net change in short-term borrowings | 30,317 | (14,647) |
Long-term debt repayment | (35,038) | (70) |
Net Cash Provided by Financing Activities | 24,659 | 81,934 |
Net (decrease)/ increase in cash and cash equivalents | (28,678) | 1,519 |
Cash and cash equivalents, beginning of period | 96,763 | 60,881 |
Cash and cash equivalents, end of period | 68,085 | 62,400 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 29,662 | 10,671 |
Supplemental Noncash Disclosures: | ||
Recognition of operating lease right of use assets | 0 | 125 |
Recognition of operating lease liabilities | 0 | 125 |
Loans transferred to foreclosed assets held for sale | $ 4,817 | $ 205 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 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 and two counties in New Jersey. 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 (which ceased operating during the first quarter of 2024) and MPB Risk Services, LLC, and MPB Launchpad Fund I, LLC. As of March 31, 2024, 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. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. Mid Penn believes the information presented is not misleading, and the disclosures are adequate. For comparative purposes, the March 31, 2023 and December 31, 2023 balances have been reclassified, when necessary, to conform to the 2024 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. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2023 Annual Report. Mid Penn has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2024, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the issuance date of these consolidated financial statements. 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 credit losses, the expected cash flows and collateral values associated with loans that are individually evaluated for credit losses, 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. Accounting Standards adopted and Updated Significant Accounting Policy On January 1, 2023, the Corporation adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments , which replaced the incurred loss methodology, and is referred to as CECL. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, including loans and HTM debt securities. It also applies to OBS credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASC Topic 842. Prior to 2024, the provision for OBS credit losses was included in Other Expenses on the Statement of Income. As of March 31, 2024, the provision for OBS credit losses is included in Provision for Credit Losses on the Income Statement. Prior periods have been updated for presentation. All other significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the 2023 Annual Report. Those significant accounting policies are unchanged at March 31, 2024. Accounting Standards Pending Adoption ASU No. 2023-02: The FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update also remove certain guidance for Qualified Affordable Housing Project investments and require the application of the delayed equity contribution guidance to all tax equity investments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and must be applied on either a modified retrospective or a retrospective basis. Early adoption is permitted in any interim period, however if adopted in an interim period the entity shall adopt the amendments in this update as of the beginning of the fiscal year that includes the interim period. The Corporation does not expect the adoption of ASU No. 2023-02 to have a material impact on its consolidated financial statements. ASU 2023-06: The FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . ASU 2023-06 amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. ASU 2023-06 is not expected to have a significant impact on our financial statements. ASU 2023-07: The FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 amends the ASC to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 is not expected to have a significant impact on our financial statements. ASU 2023-09 : The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2023-09 amends the ASC to enhance income tax disclosures by requiring entities to disclose income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes. Additionally, entities are required to disclose amounts greater than 5% of the total income taxes paid to an individual jurisdiction The amendments are effective for annual periods beginning after December 15, 2025. ASU 2023-09 is not expected to have a significant impact on our financial statements. ASU 2024-01 —The FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718): Scope application of profits interest and similar awards The amendments in the ASU apply to all reporting entities that account for profits interest awards as compensation to employees or nonemployees in return for goods or services. The amendments are effective for annual periods beginning after December 15, 2025, and interim periods within those annual periods. ASU 2024-01 is not expected to have a significant impact on our financial statements. ASU 2024-02 : The FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements This ASU contains amendments to the Codification that remove references to various FASB Concepts Statements. The amendments are effective for fiscal years beginning after Dec. 15, 2025. Early adoption is permitted. ASU 2024-02 is not expected to have a significant impact on our financial statements. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination Brunswick Acquisition On May 19, 2023, Mid Penn completed its acquisition of Brunswick through the merger of Brunswick with and into Mid Penn with Mid Penn being the surviving corporation. In connection with this acquisition, Brunswick Bank, a wholly-owned subsidiary of Brunswick, merged with and into Mid Penn Bank, a wholly-owned subsidiary of Mid Penn. This transaction included the acquisition of 5 branches and extended Mid Penn’s footprint into Middlesex and Monmouth counties in central New Jersey. Mid Penn issued 849,510 shares of its common stock as well as a net cash payment to Brunswick shareholders of $27.6 million, for total consideration of $45.7 million for all outstanding stock and the cancellation of stock options of Brunswick. Mid Penn has recognized total goodwill of $12.8 million, which is calculated as the excess of both the consideration exchanged and liabilities assumed compared to the fair market value of identifiable assets acquired. The fair value of the consideration exchanged related to Mid Penn’s common stock was calculated based upon the closing market price of Mid Penn’s common stock as of May 19, 2023. None of the goodwill recognized is expected to be deductible for income tax purposes. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. Mid Penn considers various factors in connection with the identification of more-than-insignificant deterioration in credit, including but not limited to nonperforming status, delinquency, risk ratings, FICO scores and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. As part of the Brunswick Acquisition, Mid Penn acquired PCD loans and leases of $18.7 million. Mid Penn established an ACL at acquisition of $336 thousand with a corresponding gross-up to the amortized cost of the PCD loans and leases. The non-credit discount on the PCD loans and leases was $2.4 million and the Day 1 fair value was $16.3 million. The initial provision expense for non-PCD loans associated with the Brunswick Acquisition was $2.0 million. Estimated fair values of the assets acquired and liabilities assumed in the Brunswick Acquisition as of the closing date are as follows: (In thousands) Assets acquired: Cash and cash equivalents $ 21,029 Federal funds sold 7,604 Investment securities 2,423 Loans 324,471 Goodwill 12,800 Core deposit intangible 999 Premises and equipment 4,568 Cash surrender value of life insurance 3,361 Deferred income taxes 6,393 Accrued interest receivable 1,171 Other assets 5,884 Total assets acquired 390,703 Liabilities assumed: Deposits: Noninterest-bearing demand 60,888 Interest-bearing demand 11,767 Money Market 47,362 Savings 14,203 Time 147,163 Long-term debt 60,136 Accrued interest payable 1,911 Other liabilities 1,613 Total liabilities assumed 345,043 Consideration paid $ 45,660 Cash paid $ 27,565 Fair value of common stock issued 18,095 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2024 | |
Securities Financing Transactions Disclosures [Abstract] | |
Investment Securities | Investment Securities FASB ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," was adopted by Mid Penn on January 1, 2023. ASU 2016-13 introduces the CECL methodology for estimating allowances for credit losses. ASU 2016-13 applies to all financial instruments carried at amortized cost, including HTM securities, and makes targeted improvements to the accounting for credit losses on AFS securities. In order to comply with ASC 326, Mid Penn conducted a review of its investment portfolio and determined that for certain classes of securities it would be appropriate to assume the expected credit loss to be zero. This zero-credit loss assumption applies to debt issuances of the U.S. Treasury and agencies and instrumentalities of the United States government. The reasons behind the adoption of the zero-credit loss assumption are as follows: • High credit rating • Long history with no credit losses • Guaranteed by a sovereign entity • Widely recognized as "risk-free rate" • Can print its own currency • Currency is routinely held by central banks, used in international commerce, and commonly viewed as reserve currency • Currently under the U.S. Government conservatorship or receivership Mid Penn will continuously monitor any changes in economic conditions, credit downgrades, changes to explicit or implicit guarantees granted to certain debt issuers, and any other relevant information that would indicate potential credit deterioration and prompt Mid Penn to reconsider its zero-credit loss assumption. At the date of adoption, Mid Penn’s estimated allowance for credit losses on AFS and HTM securities under ASU 2016-13 was deemed immaterial due to the composition of these portfolios. Both portfolios consist primarily of U.S. government agency guaranteed mortgage-backed securities for which the risk of loss is minimal. Therefore, Mid Penn did not recognize a cumulative effect adjustment through retained earnings related to the AFS and HTM securities. AFS Securities ASU 2016-13 makes targeted improvements to the accounting for credit losses on AFS securities. The concept of other-than-temporarily impaired has been replaced with the allowance for credit losses. Unlike HTM securities, AFS securities are evaluated on an individual level and pooling of securities is not allowed. Quarterly, Mid Penn evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, Mid Penn performs further analysis as outlined below: • Review the extent to which the fair value is less than the amortized cost and observe the security’s lowest credit rating as reported by third-party credit ratings companies. • The securities that violate the credit loss triggers above would be subjected to additional analysis that may include, but is not limited to: changes in market interest rates, changes in securities credit ratings, security type, service area economic factors, financial performance of the issuer/or obligor of the underlying issue and third-party guarantee. • If Mid Penn determines that a credit loss exists, the credit portion of the allowance will be measured using a DCF analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss Mid Penn records will be limited to the amount by which the amortized cost exceeds the fair value. The DCF analysis utilizes contractual maturities, as well as third-party credit ratings and cumulative default rates published annually by a reputable third-party. At March 31, 2024, the results of the analysis did not identify any securities that violate the credit loss triggers; therefore, no DCF analysis was performed and no credit loss was recognized on any of the securities available for sale. Accrued interest receivable is excluded from the estimate of credit losses for AFS securities. At March 31, 2024, accrued interest receivable totaled $982 thousand for AFS securities and was reported in accrued interest receivable on the accompanying Consolidated Balance Sheet. HTM Securities ASU 2016-13 requires institutions to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risks exist. Mid Penn uses several levels of segmentation in order to measure expected credit losses: • The portfolio is segmented into agency and non-agency securities. • The non-agency securities are separated into state and political subdivision obligations and corporate debt securities. Each individual segment is categorized by third-party credit ratings. As discussed above, Mid Penn has determined that for certain classes of securities it would be appropriate to assume the expected credit loss to be zero, which include debt issuances of the U.S. Treasury and agencies and instrumentalities of the United States government. This assumption will be reviewed and attested to quarterly. At March 31, 2024, Mid Penn’s HTM securities totaled $397.0 million. After applying appropriate probability of default and loss given default assumptions, the total amount of current expected credit losses was deemed immaterial. Therefore, no reserve was recorded at March 31, 2024. Accrued interest receivable is excluded from the estimate of credit losses for HTM securities. At March 31, 2024, accrued interest receivable totaled $2.2 million for HTM securities and was reported in accrued interest receivable At March 31, 2024, Mid Penn had no HTM securities that were past due 30 days or more as to principal or interest payments. Mid Penn had no HTM securities classified as nonaccrual at March 31, 2024. The amortized cost and estimated fair value of investment securities for the periods presented: March 31, 2024 (In thousands) Amortized Gross Gross Unrealized Estimated Available-for-sale U.S. Treasury and U.S. government agencies $ 36,664 $ — $ 1,174 $ 35,490 Mortgage-backed U.S. government agencies 165,402 — 18,637 146,765 State and political subdivision obligations 4,326 — 693 3,633 Corporate debt securities 35,737 — 3,993 31,744 Total available-for-sale debt securities 242,129 — 24,497 217,632 Held-to-maturity U.S. Treasury and U.S. government agencies $ 245,839 $ — $ 30,821 $ 215,018 Mortgage-backed U.S. government agencies 42,376 — 5,869 36,507 State and political subdivision obligations 83,318 2 6,958 76,362 Corporate debt securities 25,465 — 2,148 23,317 Total held-to-maturity debt securities 396,998 2 45,796 351,204 Total $ 639,127 $ 2 $ 70,293 $ 568,836 December 31, 2023 (In thousands) Amortized Gross Gross Unrealized Estimated Available-for-sale U.S. Treasury and U.S. government agencies $ 36,637 $ — $ 988 $ 35,649 Mortgage-backed U.S. government agencies 169,184 — 16,501 152,683 State and political subdivision obligations 4,332 — 686 3,646 Corporate debt securities 35,733 — 4,156 31,577 Total available-for-sale debt securities $ 245,886 $ — $ 22,331 $ 223,555 Held-to-maturity U.S. Treasury and U.S. government agencies $ 245,805 $ 2 $ 28,676 $ 217,131 Mortgage-backed U.S. government agencies 43,818 — 5,523 38,295 State and political subdivision obligations 84,035 11 6,486 77,560 Corporate debt securities 25,470 — 935 24,535 Total held-to-maturity debt securities 399,128 13 41,620 357,521 Total $ 645,014 $ 13 $ 63,951 $ 581,076 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 instruments of a similar type, credit quality and structure, adjusted for differences between the quoted instruments and the instruments being valued. See "Note 8 - Fair Value Measurement," for additional information. Investment securities having a fair value of $383.9 million at March 31, 2024 and $380.3 million at December 31, 2023 were pledged to secure public deposits, some Trust department deposit accounts, and certain other borrowings. In accordance with legal provisions for alternatives other than pledging of investments, Mid Penn also obtains letters of credit from the FHLB to secure certain public deposits. These FHLB letter of credit commitments totaled $142.9 million as of March 31, 2024 and $153.5 million as of December 31, 2023. The following tables present gross unrealized losses and fair value of debt investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the periods presented: (Dollars in thousands) Less Than 12 Months 12 Months or More Total March 31, 2024 Number Estimated Gross Number Estimated Gross Number Estimated Gross Available-for-sale debt securities: U.S. Treasury and U.S. government agencies — $ — $ — 19 $ 35,490 $ 1,174 19 $ 35,490 $ 1,174 Mortgage-backed U.S. government agencies — — — 93 146,765 18,637 93 146,765 18,637 State and political subdivision obligations — — — 8 3,633 693 8 3,633 693 Corporate debt securities — — — 18 31,744 3,993 18 31,744 3,993 Total available-for-sale debt securities — $ — $ — 138 $ 217,632 $ 24,497 138 $ 217,632 $ 24,497 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies — — — 145 215,018 30,821 145 215,018 30,821 Mortgage-backed U.S. government agencies — — — 64 36,507 5,869 64 36,507 5,869 State and political subdivision obligations 16 5,846 86 177 70,201 6,872 193 76,047 6,958 Corporate debt securities — — — 15 23,317 2,148 15 23,317 2,148 Total held-to-maturity debt securities 16 5,846 86 401 345,043 45,710 417 350,889 45,796 Total 16 $ 5,846 $ 86 539 $ 562,675 $ 70,207 555 $ 568,521 $ 70,293 (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2023 Number Estimated Gross Number Estimated Gross Number Estimated Gross Available-for-sale securities: U.S. Treasury and U.S. government agencies — $ — $ — 19 $ 35,649 $ 988 19 $ 35,649 $ 988 Mortgage-backed U.S. government agencies 1 4,015 26 92 148,668 16,475 93 152,683 16,501 State and political subdivision obligations — — — 8 3,646 686 8 3,646 686 Corporate debt securities 1 410 90 17 31,167 4,066 18 31,577 4,156 Total available-for-sale securities 2 4,425 116 136 219,130 22,215 138 223,555 22,331 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 1 $ 2,002 $ — 144 $ 215,129 $ 28,676 145 $ 217,131 $ 28,676 Mortgage-backed U.S. government agencies — — — 64 38,295 5,523 64 38,295 5,523 State and political subdivision obligations 25 8,729 63 170 68,831 6,423 195 77,560 6,486 Corporate debt securities 1 936 57 14 23,599 878 15 24,535 935 Total held to maturity securities 27 11,667 120 392 345,854 41,500 419 357,521 41,620 Total 29 $ 16,092 $ 236 528 $ 564,984 $ 63,715 557 $ 581,076 $ 63,951 There were no gross realized gains and losses on sales of available-for-sale debt securities for the three months ended March 31, 2024 and 2023. The table below illustrates the contractual maturity of debt investment securities at amortized cost and estimated fair value. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without call or prepayment penalties. (In thousands) Available-for-sale Held-to-maturity March 31, 2024 Amortized Fair Amortized Fair Due in 1 year or less $ 12,496 $ 12,380 $ 13,047 $ 12,906 Due after 1 year but within 5 years 34,425 32,819 125,456 116,182 Due after 5 years but within 10 years 27,475 23,743 195,525 168,141 Due after 10 years 2,331 1,925 20,594 17,468 76,727 70,867 354,622 314,697 Mortgage-backed securities 165,402 146,765 42,376 36,507 $ 242,129 $ 217,632 $ 396,998 $ 351,204 |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses - Loans | 3 Months Ended |
Mar. 31, 2024 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans and Allowance for Credit Losses - Loans | Loans and Allowance for Credit Losses - Loans Mid Penn adopted the amendments of FASB ASU 2016-13, on January 1, 2023. The amendments of ASU 2016-13 created FASB ASC Topic 326, "Financial Instruments – Credit Losses," which, among other things, replace much of the guidance and disclosures previously provided in FASB ASC Topic 310, "Receivables." The guidance in FASB ASC Topic 326 replaces the incurred loss methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit losses. In accordance with FASB ASC Subtopic 326-20, "Financial Instruments – Credit Losses – Measured at Amortized Cost," Mid Penn has developed an ACL methodology effective January 1, 2023, which replaces its previous allowance for loan losses methodology. See the section captioned "Allowance for Credit Losses, effective January 1, 2023" within this note for additional information regarding Mid Penn’s ACL. Loans, net of unearned income, are summarized as follows by portfolio segment: (In thousands) March 31, 2024 December 31, 2023 Commercial real estate CRE Nonowner Occupied $ 1,174,774 $ 1,149,553 CRE Owner Occupied 622,574 629,904 Multifamily 334,952 309,059 Farmland 212,018 212,690 Total Commercial real estate 2,344,318 2,301,206 Commercial and industrial 671,395 675,079 Construction Residential Construction 103,861 92,843 Other Construction 383,428 362,624 Total Construction 487,289 455,467 Residential mortgage 1-4 Family 1st Lien 334,557 339,142 1-4 Family Rental 340,052 341,937 HELOC and Junior Liens 132,703 132,795 Total Residential Mortgage 807,312 813,874 Consumer 7,135 7,166 Total loans $ 4,317,449 $ 4,252,792 Total loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs. Net deferred loan fees of $4.0 million and $4.2 million reduced the carrying value of loans as of March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable is not included in the amortized cost basis of Mid Penn's loans. At March 31, 2024, accrued interest receivable for loans totaled $23.2 million with no related ACL and was reported in other assets Past Due and Nonaccrual 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 March 31, 2024 and December 31, 2023, are summarized as follows: (In thousands) 30-59 60-89 Greater Total Past Current Total Loans Loans March 31, 2024 Commercial real estate $ 9,647 $ — $ 778 $ 10,425 $ 2,333,893 $ 2,344,318 $ — Commercial and industrial — 87 1,771 1,858 669,537 671,395 — Construction — — — — 487,289 487,289 — Residential mortgage 1,328 387 2,201 3,916 803,396 807,312 — Consumer 18 — 25 43 7,092 7,135 25 Total $ 10,993 $ 474 $ 4,775 $ 16,242 $ 4,301,207 $ 4,317,449 $ 25 (In thousands) 30-59 60-89 Greater Total Past Current Total Loans Loans December 31, 2023 Commercial real estate $ 5,073 $ 682 $ 2,974 $ 8,729 $ 2,292,477 $ 2,301,206 $ — Commercial and industrial 638 24 1,270 1,932 673,147 675,079 — Construction — 270 2,559 2,829 452,638 455,467 — Residential mortgage 4,648 267 2,518 7,433 806,441 813,874 — Consumer 41 31 — 72 7,094 7,166 — Total $ 10,400 $ 1,274 $ 9,321 $ 20,995 $ 4,231,797 $ 4,252,792 $ — Loans are placed on nonaccrual status when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due. Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of March 31, 2024 and December 31, 2023 are summarized as follows: March 31, 2024 December 31, 2023 (In thousands) With a Related Allowance Without a Related Allowance Total With a Related Allowance Without a Related Allowance Total Commercial real estate $ 449 $ 4,139 $ 4,588 $ 454 $ 6,133 $ 6,587 Commercial and industrial 1,202 1,156 2,358 1,222 64 1,286 Construction — — — — 2,559 2,559 Residential mortgage 41 3,402 3,443 2 3,782 3,784 Consumer — — — — — — $ 1,692 $ 8,697 $ 10,389 $ 1,678 $ 12,538 $ 14,216 The amount of interest income recognized on nonaccrual loans was approximately $159 thousand and $182 thousand during the three months ended March 31, 2024 and 2023, respectively. Credit Quality Indicators Mid Penn categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. On a minimum of a quarterly basis, Mid Penn analyzes loans individually to classify the loans as to their credit risk. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal. PASS - This type of classification consists of 6 subcategories: Nominal Risk / Pass - This loan classification is a credit extension of the highest quality. Moderate Risk / Pass - This type of classification has strong financial ratios, substantial debt capacity, and low leverage with a very favorable comparison to industry peers or better than average improving trends are necessary to be in this classification. Good Acceptable Risk / Pass - The Borrower in this rating classification is a reasonable credit risk having financial ratios on par with its peers and demonstrates slightly improving trends over time; they list good quality assets and fairly low leverage plus ample debt capacity. Average Acceptable Risk / Pass - This type of classification has financial ratios and assets are of above average quality, the leverage is worse than average compared to industry standards; the Borrower should have a good repayment history and possess consistent earnings with some growth. Marginally Acceptable Risk / Pass - This type of classification has financial ratios consistent with industry averages, assets of average quality with ascertainable values, acceptable leverage, moderate capital assets and an acceptable reliance on trade debt; the Borrower demonstrates marginally adequate earnings, cash flow and debt service plus positive trends. Weak/Monitor Risk (Watch list) / Pass - This type of classification has financial ratios are slightly below standard industry averages and assets are below average quality with unstable values; fixed assets could be near or at the end of their useful life plus liabilities may not match the asset structure. SPECIAL MENTION - These credits have developing weaknesses deserving extra attention from the lender and lending management. They are currently protected, but potentially weak. The weakness may be, cash flow, leverage, liquidity, management, industry or other factors which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. SUBSTANDARD - These credit extensions also have well defined weaknesses, which are inadequately protected by the current worth and debt service capacity of the Borrowers, or the collateral pledged, if any. The repayment of principal and interest as originally intended can be jeopardized by defined weaknesses related to adverse financial, managerial, economic, market or political conditions. DOUBTFUL - These credits have definite weaknesses inherent in Substandard loans with added characteristics that are severe enough to make further collection in full highly questionable and improbable based on the current trends. LOSS . These loans are considered uncollectible and no longer a viable asset of the Bank. They lack an identifiable source of repayment based on an inability to generate sufficient cash flow to service their debt. All trends are negative and the damage to the financial condition of the Borrower can’t be reversed now or in the near future. March 31, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized (In thousands) 2024 2023 2022 2021 2020 Prior Total Commercial real estate Pass $ 49,466 $ 289,970 $ 568,000 $ 372,639 $ 293,680 $ 688,117 $ 43,525 $ 2,305,397 Special mention — 188 434 — — 16,407 191 17,220 Substandard or lower — — 2,990 206 3,146 15,313 46 21,701 Total commercial real estate 49,466 290,158 571,424 372,845 296,826 719,837 43,762 2,344,318 Commercial and industrial Pass 33,909 147,232 97,313 62,551 28,200 104,941 189,231 663,377 Special mention — 79 61 282 — 2,280 2,272 4,974 Substandard or lower — — — 591 — 1,938 515 3,044 Total commercial and industrial 33,909 147,311 97,374 63,424 28,200 109,159 192,018 671,395 Construction Pass 13,362 164,703 185,710 56,475 20,419 16,024 28,785 485,478 Special mention — — — — 1,811 — — 1,811 Substandard or lower — — — — — — — — Total construction 13,362 164,703 185,710 56,475 22,230 16,024 28,785 487,289 Residential mortgage Performing 25,512 145,753 148,963 109,236 87,274 197,768 84,656 799,162 Non-performing — 178 — 79 1,666 6,129 98 8,150 Total residential mortgage 25,512 145,931 148,963 109,315 88,940 203,897 84,754 807,312 Gross charge offs — — (21) — — (7) — (28) Net charge offs — — (21) — — (7) — (28) Consumer Performing 1,550 1,251 622 591 221 281 2,619 7,135 Non-performing — — — — — — — — Total consumer 1,550 1,251 622 591 221 281 2,619 7,135 Gross charge offs (16) — (2) — — (4) — (22) Current period recoveries 5 — — — — 1.00 — 6 Net charge offs (11) — (2) — — (3) — (16) Total Pass $ 96,737 $ 601,905 $ 851,023 $ 491,665 $ 342,299 $ 809,082 $ 261,541 $ 3,454,252 Special mention — 267 495 282 1,811 18,687 2,463 24,005 Substandard or lower — — 2,990 797 3,146 17,251 561 24,745 Performing 27,062 147,004 149,585 109,827 87,495 198,049 87,275 806,297 Nonperforming — 178 — 79 1,666 6,129 98 8,150 Total $ 123,799 $ 749,354 $ 1,004,093 $ 602,650 $ 436,417 $ 1,049,198 $ 351,938 $ 4,317,449 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial real estate Pass $ 271,655 $ 556,801 $ 386,911 $ 297,746 $ 178,434 $ 528,326 $ 38,261 $ 2,258,134 Special mention 194 — — — 6,009 10,482 186 16,871 Substandard or lower — 5,209 208 3,162 229 17,345 48 26,201 Total commercial real estate 271,849 562,010 387,119 300,908 184,672 556,153 38,495 2,301,206 Gross charge offs — — — — — (16) — (16) Net charge offs — — — — — (16) — (16) Commercial and industrial Pass 158,824 106,714 68,448 29,961 50,206 57,892 188,714 660,759 Special mention — 89 2,224 — 227 2,200 4,391 9,131 Substandard or lower — — 662 — — 1,978 2,549 5,189 Total commercial and industrial 158,824 106,803 71,334 29,961 50,433 62,070 195,654 675,079 Gross charge offs — (100) — (111) — (27) — (238) Net charge offs — (100) — (111) — (27) — (238) Construction Pass 153,596 181,214 54,658 22,357 10,247 5,856 23,262 451,190 Special mention — — — 1,447 — — — 1,447 Substandard or lower — 573 — — — 2,257 — 2,830 Total construction 153,596 181,787 54,658 23,804 10,247 8,113 23,262 455,467 Residential mortgage Performing 158,634 153,203 111,610 90,382 27,863 178,898 87,723 808,313 Non-performing — — 93 1,470 — 3,998 — 5,561 Total residential mortgage 158,634 153,203 111,703 91,852 27,863 182,896 87,723 813,874 Gross charge offs — — — — — (13) — (13) Current period recoveries — — — — — 38 — 38 Net recoveries — — — — — 25 — 25 Consumer Performing 2,361 754 649 273 223 103 2,803 7,166 Total consumer 2,361 754 649 273 223 103 2,803 7,166 Gross charge offs (86) — (10) (9) — (30) — (135) Current period recoveries 26 — — 1 — 5 — 32 Net charge offs (60) — (10) (8) — (25) — (103) Total Pass $ 584,075 $ 844,729 $ 510,017 $ 350,064 $ 238,887 $ 592,074 $ 250,237 $ 3,370,083 Special mention 194 89 2,224 1,447 6,236 12,682 4,577 27,449 Substandard or lower — 5,782 870 3,162 229 21,580 2,597 34,220 Performing 160,995 153,957 112,259 90,655 28,086 179,001 90,526 815,479 Nonperforming — — 93 1,470 — 3,998 — 5,561 Total $ 745,264 $ 1,004,557 $ 625,463 $ 446,798 $ 273,438 $ 809,335 $ 347,937 $ 4,252,792 Mid Penn had no loans classified as "doubtful" as of March 31, 2024 and December 31, 2023. There was $892 thousand and $121 thousand in loans for which formal foreclosure proceedings were in process at March 31, 2024 and December 31, 2023. Collateral-Dependent Loans A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, Mid Penn elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, Mid Penn records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate, including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land. Allowance for Credit Losses, effective January 1, 2023 Mid Penn’s ACL - loans methodology is based upon guidance within FASB ASC Subtopic 326-20, as well as regulatory guidance from the FDIC, its primary federal regulator. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the PCL and reduced by the charge off of loan amounts, net of recoveries. The loan loss estimation process involves procedures to appropriately consider the unique characteristics of Mid Penn’s loan portfolio segments. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Evaluations of the portfolio and individual credits are inherently subjective, as they require estimates, assumptions and judgments as to the facts and circumstances of particular situations. Determining the appropriateness of the allowance is complex and requires judgement by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the ACL and credit loss expense. Mid Penn estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Mid Penn uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool. The qualitative portion of the allowance is based on general economic conditions and other internal and external factors affecting Mid Penn as a whole, as well as specific loans. Factors considered include the following: lending process, concentrations of credit, and credit quality. The quantitative and qualitative portions of the allowance are added together to determine the total ACL, which reflects management’s expectations of future conditions based on reasonable and supportable forecasts. The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics. The commercial real estate and residential mortgage loan portfolio segments include loans for both commercial and residential properties that are secured by real estate. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and, if applicable, guarantor, experience with similar projects in the past, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance, in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered when applicable. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing. The commercial and industrial loan portfolio segment includes commercial loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory, equipment and fixed asset purchases that are secured by those assets, and term financing for those within Mid Penn’s geographic markets. Mid Penn’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information, and evaluation of underlying collateral to support the credit. The consumer loan portfolio segment is comprised of loans which are underwritten after evaluating a borrower’s capacity, credit and collateral. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets and level of equity in the property. Credit is assessed using a credit report that provides credit scores and the borrower’s current and past information about their credit history. Loan-to-value and debt-to-income ratios, loan amount and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends, such as conditions that negatively affect housing prices and demand and levels of unemployment. Mid Penn utilizes a DCF method to estimate the quantitative portion of the allowance for credit losses for loan pools. The DCF is based off of historical losses, including peer data, which is correlated to national unemployment and GDP. The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s coupon rate to arrive at the discounted cash flow based quantitative loss. The prepayment studies are updated quarterly by a third-party for each applicable pool. Mid Penn determined that reasonable and supportable forecasts could be made for a twelve-month period for all of its loan pools. To the extent the lives of the loans in the LHFI portfolio extend beyond this forecast period, Mid Penn uses a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans. Qualitative factors used in the ACL methodology include the following: • Lending process • Concentrations of credit • Peer Group Divergence The ACL for individual loans, such as non-accrual and PCD, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for the estimated cost to sell. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Real Estate Administration Group to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off. Mid Penn may also purchase loans or acquire loans through a business combination. At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as PCD loans. In its evaluation of whether a loan has experienced more than insignificant deterioration in credit quality since origination, Mid Penn takes into consideration loan grades, past due and nonaccrual status. Mid Penn may also consider external credit rating agency ratings for borrowers and for non-commercial loans, FICO score or band, probability of default levels, and number of times past due. At the purchase or acquisition date, the amortized cost basis of PCD loans is equal to the purchase price and an initial estimate of credit losses. The initial recognition of expected credit losses on PCD loans has no impact on net income. When the initial measurement of expected credit losses on PCD loans is calculated on a pooled loan basis, the expected credit losses are allocated to each loan within the pool. Any difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted (or amortized) into interest income over the life of the loan. Subsequent changes to the ACL on PCD loans are recorded through the PCL. For purchased loans that are not deemed to have experienced more than insignificant credit deterioration since origination and are therefore not deemed PCD, any discounts or premiums included in the purchase price are accreted (or amortized) over the contractual life of the individual loan. Loans are charged off against the ACL, with any subsequent recoveries credited back to the ACL account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off. The following tables present the activity in the ACL - loans by portfolio segment for the three months ended March 31, 2024 and three months ended March 31, 2023: (In thousands) As of March 31, 2024 Balance at Charge offs Recoveries Net loans (charged off) recovered (Benefit)/Provision for credit losses Balance at Commercial Real Estate CRE Nonowner Occupied 10,267 — — — 150 10,417 CRE Owner Occupied 5,646 — — — (44) 5,602 Multifamily 2,202 — — — 168 2,370 Farmland 2,064 — — — (62) 2,002 Commercial and industrial 7,131 — — — (631) 6,500 Construction Residential Construction 1,256 — — — (80) 1,176 Other Construction 2,146 — — — 25 2,171 Residential Mortgage 1-4 Family 1st Lien 1,207 (7) — (7) 71 1,271 1-4 Family Rental 1,859 (21) — (21) (299) 1,539 HELOC and Junior Liens 389 — — — 68 457 Consumer 20 (22) 6 (16) 15 19 Total 34,187 (50) 6 (44) (619) 33,524 (In thousands) Balance at CECL Impact Charge offs Recoveries Net loans (charged off) recovered Provision/(Benefit) for credit losses Balance at Commercial Real Estate CRE Nonowner Occupied $ 8,284 $ 259 $ — $ — $ — $ (368) $ 8,175 CRE Owner Occupied 2,916 91 (16) — (16) 88 3,079 Multifamily 1,111 35 — — — 13 1,159 Farmland 831 26 — — — 42 899 Commercial and industrial 4,593 6,601 (111) — (111) 186 11,269 Construction Residential Construction — 1,270 — — — 153 1,423 Other Construction — 1,931 — — — 277 2,208 Residential Mortgage 1-4 Family 1st Lien 370 1,307 (4) — (4) (317) 1,356 1-4 Family Rental 288 731 — 30 30 17 1,066 HELOC and Junior Liens 661 (230) — — — 21 452 Consumer 29 154 (19) 7 (12) 8 179 Unallocated (126) (244) — — — 370 — Total $ 18,957 $ 11,931 $ (150) $ 37 $ (113) $ 490 $ 31,265 The following table presents the ACL for loans and the amortized cost basis of the loans by the measurement methodology used as of March 31, 2024 and December 31, 2023: (In thousands) ACL - Loans Loans March 31, 2024 Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total ACL - Loans Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total Loans Commercial real estate CRE Nonowner Occupied $ 10,061 $ 356 $ 10,417 $ 1,172,396 $ 2,378 $ 1,174,774 CRE Owner Occupied 5,602 — 5,602 620,534 2,040 622,574 Multifamily 2,351 19 2,370 334,781 171 334,952 Farmland 2,002 — 2,002 212,018 — 212,018 Commercial and industrial 5,761 739 6,500 669,037 2,358 671,395 Construction Residential Construction 1,176 — 1,176 103,861 — 103,861 Other Construction 2,171 — 2,171 383,428 — 383,428 Residential mortgage 1-4 Family 1st Lien 1,271 — 1,271 332,822 1,735 334,557 1-4 Family Rental 1,535 4 1,539 339,696 356 340,052 HELOC and Junior Liens 457 — 457 131,351 1,352 132,703 Consumer 19 — 19 7,135 — 7,135 Total $ 32,406 $ 1,118 $ 33,524 $ 4,307,059 $ 10,390 $ 4,317,449 (In thousands) ACL - Loans Loans December 31, 2023 Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total ACL - Loans Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total Loans Commercial real estate CRE Nonowner Occupied $ 9,906 $ 361 $ 10,267 $ 1,145,048 $ 4,505 $ 1,149,553 CRE Owner Occupied 5,646 — 5,646 627,995 1,909 629,904 Multifamily 2,190 12 2,202 308,886 173 309,059 Farmland 2,064 — 2,064 212,690 — 212,690 Commercial and industrial 6,419 712 7,131 673,793 1,286 675,079 Construction Residential Construction 1,256 — 1,256 92,270 573 92,843 Other Construction 2,146 — 2,146 360,368 2,256 362,624 Residential mortgage 1-4 Family 1st Lien 1,207 — 1,207 337,267 1,875 339,142 1-4 Family Rental 1,857 2 1,859 341,236 701 341,937 HELOC and Junior Liens 389 — 389 131,587 1,208 132,795 Consumer 20 — 20 7,166 — 7,166 Total $ 33,100 $ 1,087 $ 34,187 $ 4,238,306 $ 14,486 $ 4,252,792 Modifications to Borrowers Experiencing Financial Difficulty From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension, or a combination thereof, among other things. There was one new modification for the quarter ending March 31, 2024. Information related to loans modified (by type of modification), whereby the borrower was experiencing financial difficulty at the time of modification, is set forth in the following table: (In thousands) Interest Only Term Extension Combination: Total % of Total Class of Financing Receivable Three months ended March 31, 2024 Residential Mortgage $ — $ — $ 92 $ 92 0.01 % Total $ — $ — $ 92 $ 92 0.01 % (In thousands) Interest Only Term Extension Combination: Total % of Total Class of Financing Receivable Three months ended March 31, 2023 Commercial real estate $ 51 $ — $ 180 $ 231 0.04 % Total $ 51 $ — $ 180 $ 231 0.04 % The financial effects of the interest-only loan modifications reduced the monthly payment amounts for the borrower and the term extensions in the table above added a weighted-average of 2.0 years to the life of the loans, which also reduced the monthly payment amounts for the borrowers. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2024 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits consisted of the following as of March 31, 2024 and December 31, 2023: (Dollars in thousands) March 31, 2024 % of Total Deposits December 31, 2023 % of Total Deposits Noninterest-bearing demand deposits $ 807,861 18.4 % $ 801,312 18.4 % Interest-bearing demand deposits 923,120 21.1 % 947,372 21.8 % Money market 874,833 20.0 % 850,674 19.6 % Savings 284,893 6.5 % 288,404 6.6 % Total demand and savings 2,890,707 66.0 % 2,887,762 66.4 % Time 1,488,398 34.0 % 1,458,450 33.6 % Total deposits $ 4,379,105 100.0 % $ 4,346,212 100.0 % Overdrafts $ 558 0.01 % $ 315 0.01 % The scheduled maturities of time deposits at March 31, 2024 were as follows: Time Deposits (In thousands) Less than $250,000 $250,000 or more Maturing in 2024 $ 827,090 $ 279,833 Maturing in 2025 238,921 66,846 Maturing in 2026 38,245 3,463 Maturing in 2027 17,642 1,194 Maturing in 2028 11,241 572 Maturing thereafter 3,059 292 $ 1,136,198 $ 352,200 Mid Penn had $244.8 million in brokered certificates of deposits as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, Mid Penn had $91.1 million and $96.7 million of CDAR deposits, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Mid Penn manages its exposure to certain interest rate risks through the use of derivatives; however, none are entered into for speculative purposes. In 2023, Mid Penn entered into outstanding derivative contracts designated as hedges. Mid Penn’s free-standing derivative financial instruments are required to be carried at their fair value on the Consolidated Balance Sheets. Loan-level Interest Rate Swaps Mid Penn enters into loan-level interest rate swaps with certain qualifying, creditworthy commercial loan customers to meet their interest rate risk management needs. Mid Penn simultaneously enters into parallel 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. Information related to loan level swaps is set forth in the following table: March 31, 2024 December 31, 2023 (Dollars in thousands) Interest rate swaps on loans with customers Notional amount $ 201,405 $ 187,192 Weighted average remaining term (years) 5.92 6.24 Receive fixed rate (weighted average) 4.56 % 4.59 % Pay variable rate (weighted average) 7.48 % 7.50 % Estimated fair value (1) $ 11,315 $ 10,484 March 31, 2024 December 31, 2023 (Dollars in thousands) Interest rate swaps on loans with correspondents Notional amount $ 201,405 $ 187,192 Weighted average remaining term (years) 5.92 6.24 Receive variable rate (weighted average) 4.56 % 7.50 % Pay fixed rate (weighted average) 7.48 % 4.59 % Estimated fair value $ 11,315 $ 10,484 (1) The net amount of the estimated fair value is disclosed in Other Liabilities on the Consolidated Balance Sheet. Cash Flow Hedges of Interest Rate Risk Mid Penn’s objectives in using interest rate derivatives are to reduce volatility in net interest income and to manage its exposure to interest rate movements. To accomplish this objective, Mid Penn primarily uses interest rate swaps as part of its interest rate risk management strategy. Information related to cash flow hedges is set forth in the following table: March 31, 2024 December 31, 2023 (Dollars in thousands) Cash flow hedges Notional amount $ 190,000 $ 190,000 Weighted average remaining term (years) 1.97 2.22 Pay fixed rate (weighted average) 3.74 % 3.74 % Receive variable rate (weighted average) 4.07 % 4.07 % Estimated fair value $ 3,228 $ 1,460 For derivatives designated and that qualify as cash flow hedges of interest rate risk, the unrealized gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are made on Mid Penn’s variable-rate liabilities. During the next twelve months, Mid Penn estimates that an additional $2.2 million will be reclassified as a decrease to interest expense. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The changes in each component of accumulated other comprehensive loss, net of taxes, are as follows: (I n thousands ) Unrealized Loss on Unrealized Defined Benefit Total Balance at December 31, 2023 $ (17,339) $ 820 $ (118) $ (16,637) OCI before reclassifications (1,711) 1,410 8 (293) Amounts reclassified from AOCI — — (17) (17) Balance at March 31, 2024 $ (19,050) $ 2,230 $ (127) (16,947) Balance at December 31, 2022 $ (19,327) $ — $ 111 $ (19,216) OCI before reclassifications 1,977 (128) 5 1,854 Amounts reclassified from AOCI — — (12) (12) Balance at March 31, 2023 $ (17,350) $ (128) $ 104 $ (17,374) |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement 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. Mid Penn groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. The fair value hierarchy is as follows: Level 1 - Inputs that represent quoted prices for identical instruments in active markets. Level 2 - Inputs that represent quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Inputs that are largely unobservable, as little or no market data exists for the instrument being valued. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no transfers of assets between fair value Level 1 and Level 2 during the three months ended March 31, 2024 or the year ended December 31, 2023. The following tables illustrate the assets measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets. March 31, 2024 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: U.S. Treasury and U.S. government agencies $ — $ 35,490 $ — $ 35,490 Mortgage-backed U.S. government agencies — 146,765 — 146,765 State and political subdivision obligations — 3,633 — 3,633 Corporate debt securities — 31,744 — 31,744 Equity securities 431 — — 431 Loans held for sale — 4,581 — 4,581 Other assets: Derivative assets — 14,543 — 14,543 Total $ 431 $ 236,756 $ — $ 237,187 December 31, 2023 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: U.S. Treasury and U.S. government agencies $ — $ 35,649 $ — $ 35,649 Mortgage-backed U.S. government agencies — 152,683 — 152,683 State and political subdivision obligations — 3,646 — 3,646 Corporate debt securities — 31,577 — 31,577 Equity securities 438 — — 438 Loans held for sale — 3,855 — 3,855 Other assets: Derivative assets — 11,944 — 11,944 Total $ 438 $ 239,354 $ — $ 239,792 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 March 31, 2024 were measured as the price that secondary market investors were offering for loans with similar characteristics. Derivative assets - 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 source 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 Mid Penn’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 5 - 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. The following table illustrates Level 3 financial instruments measured at fair value on a nonrecurring basis: (In thousands) March 31, 2024 December 31, 2023 Individually evaluated loans, net of ACL $ 9,272 $ 13,399 Foreclosed assets held for sale 5,110 293 Net loans - This category consists of loans that were individually evaluated for credit losses, net of the related ACL, and have been classified as Level 3 assets. For 2023, the amount shown is the balance of individually evaluated loans reporting a specific allocation or that have been partially charged-off. 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. Foreclosed assets held for sale - Values are based on appraisals that consider the sales prices of property in the proximate vicinity. The following tables summarize the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn's financial instruments as of the periods presented: March 31, 2024 Carrying Estimated Fair Value (In thousands) Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 68,085 $ 68,085 $ — $ — $ 68,085 Available-for-sale investment securities 217,632 — 217,632 — 217,632 Held-to-maturity investment securities 396,998 — 351,204 — 351,204 Equity securities 431 431 — — 431 Loans held for sale 4,581 — 4,581 — 4,581 Net loans 4,283,925 — — 4,285,266 4,285,266 Restricted investment in bank stocks 17,446 17,446 — — 17,446 Accrued interest receivable 26,975 26,975 — — 26,975 Derivative assets 14,543 — 14,543 — 14,543 Financial instruments - liabilities Deposits $ 4,379,105 $ — $ 4,368,088 $ — $ 4,368,088 Short-term borrowings 271,849 — 271,849 — 271,849 Long-term debt (1) 20,768 — 20,768 — 20,768 Subordinated debt 46,201 — 40,332 — 40,332 Accrued interest payable 16,330 16,330 — — 16,330 Derivative liabilities 11,315 — 11,315 — 11,315 (1) Long-term debt excludes finance lease obligations. December 31, 2023 Estimated Fair Value (In thousands) Carrying Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 96,763 $ 96,763 $ — $ — $ 96,763 Available-for-sale investment securities 223,555 — 223,555 — 223,555 Held-to-maturity investment securities 399,128 — 357,521 — 357,521 Equity securities 438 438 — — 438 Loans held for sale 3,855 — 3,855 — 3,855 Net loans 4,218,605 — — 4,221,926 4,221,926 Restricted investment in bank stocks 16,768 16,768 — — 16,768 Accrued interest receivable 25,820 25,820 — — 25,820 Derivative assets 11,944 — 11,944 — 11,944 Financial instruments - liabilities Deposits $ 4,346,212 $ — $ 4,337,723 $ — $ 4,337,723 Short-term debt 241,532 — 241,532 — 241,532 Long-term debt (1) 55,806 — 55,081 — 55,081 Subordinated debt 46,354 — 39,515 — 39,515 Accrued interest payable 14,257 14,257 — — 14,257 Derivative liabilities 10,484 — 10,484 — 10,484 (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 March 31, 2024 and December 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and commitments to extend credit Mid Penn is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. The commitments include various guarantees and commitments to extend credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Mid Penn evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit and financial guarantees written are conditional commitments to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Mid Penn had $61.4 million and $62.2 million of standby letters of credit outstanding as of March 31, 2024 and December 31, 2023, respectively. Mid Penn does not anticipate any losses because of these transactions. The amount of the liability as of March 31, 2024 and December 31, 2023 for payment under standby letters of credit issued was not considered material. Mid Penn adopted FASB ASC Topic 326, effective January 1, 2023, which requires Mid Penn to estimate expected credit losses for OBS credit exposures which are not unconditionally cancellable. Mid Penn maintains a separate ACL on OBS credit exposures, including unfunded loan commitments and letters of credit, which is included in other liabilities on the accompanying Consolidated Balance Sheets. The ACL - OBS is adjusted as a provision for OBS commitments in provision for credit losses. The estimate includes consideration of the likelihood that funding will occur, an estimate of exposure at default that is derived from utilization rate assumptions using a non-modeled approach, and PD and LGD estimates that are derived from the same models and approaches for Mid Penn's other loan portfolio segments described in "Note 4 - Loans and Allowance for Credit Losses - Loans" above, as these unfunded commitments share similar risk characteristics with these loan portfolio segments. The ACL - OBS at March 31, 2024 was $3.2 million compared to $3.6 million at December 31, 2023. On January 1, 2023 in conjunction with adopting ASC 326, Mid Penn recorded an additional $3.1 million of provision for OBS which was included in the adoption cumulative effect adjustment. A benefit for OBS credit losses of $318 thousand was recorded for the three months ended March 31, 2024. 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. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Maturities of Long-Term Debt [Abstract] | |
Debt | Debt Short-term FHLB and Correspondent Bank Borrowings Total short-term borrowings were $271.8 million and $241.5 million as of March 31, 2024 and December 31, 2023, respectively. 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 the Bank’s 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 $3.0 billion at March 31, 2024. The Bank had a short-term borrowing capacity from the FHLB as of March 31, 2024 up to the Bank’s unused borrowing capacity of $1.7 billion (equal to $2.1 billion of maximum borrowing capacity, less the aggregate amount of FHLB letter of credits securing public funds deposits, and other FHLB advances and obligations outstanding) upon satisfaction of any stock purchase requirements of the FHLB. The Bank also has unused overnight lines of credit with other correspondent banks amounting to $35.0 million at March 31, 2024. No draws were made on these lines as of March 31, 2024 and December 31, 2023. Long-term Debt The following table presents a summary of long-term debt as of March 31, 2024 and December 31, 2023. (Dollars in thousands) March 31, 2024 December 31, 2023 FHLB fixed rate instruments: Due January 2024, 1.10% $ — $ 10,000 Due March 2024, 5.60% — 25,000 Due February 2026, 4.51% 20,000 20,000 Due August 2026, 4.80% 746 782 Due February 2027, 6.71% 22 24 Total FHLB fixed rate instruments 20,768 55,806 Lease obligations included in long-term debt 3,173 3,197 Total long-term debt $ 23,941 $ 59,003 As a member of the FHLB, the Bank can access a number of credit products which are utilized to provide liquidity. The FHLB fixed rate instruments obtained by the Bank are secured under the terms of a blanket collateral agreement with the FHLB consisting of FHLB stock and qualifying Bank loan receivables, principally real estate secured loans. The Bank 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 as a legally allowable alternative to investment pledging. These FHLB letter of credit commitments totaled $142.9 million and $153.5 million as of March 31, 2024 and December 31, 2023, respectively. |
Subordinated Debt and Trust Pre
Subordinated Debt and Trust Preferred Securities | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Subordinated Debt and Trust Preferred Securities | Subordinated Debt and Trust Preferred Securities 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 SOFR plus 563 bps, payable quarterly until maturity. Mid Penn may redeem the Riverview Notes at par, in whole or in part, at its option, anytime beginning on October 15, 2025. 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 4.5% 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 4.5%. 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 March 31, 2024 and December 31, 2023. 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 its 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 March 31, 2024 was $8.1 million. The March 2020 Notes are intended to be treated as Tier 2 capital for regulatory capital purposes. The March 2020 Notes bear interest at a rate of 4.0% 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 March 31, 2024 and December 31, 2023. |
Common Stock and Earnings Per S
Common Stock and Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |
Common Stock and Earnings Per Share | Common Stock and Earnings Per Share Treasury Stock Repurchase Program Mid Penn adopted a treasury stock repurchase program ("Program") initially effective March 19, 2020, and renewed through April 24, 2025 by Mid Penn’s Board of Directors on April 24, 2024. The Program authorizes the repurchase of up to $15.0 million of Mid Penn’s outstanding common stock. Under the Program, Mid Penn conducts 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 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 Program is able to be modified, suspended or terminated at any time, at 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 Program does not obligate Mid Penn to repurchase any shares. During the three months ended March 31, 2024, Mid Penn repurchased 15,500 shares of common stock at an average price of $20.81. As of March 31, 2024, Mid Penn had repurchased 440,722 shares of common stock at an average price of $22.78 per share under the Program. The Program had approximately $5.0 million remaining available for repurchase as of March 31, 2024. Dividend Reinvestment Plan Under Mid Penn’s amended and restated 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. Equity Incentive Plans On May 9, 2023, shareholders approved the 2023 Stock Incentive Plan, which authorizes Mid Penn to grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. The 2023 Plan was established for employees and directors of Mid Penn and the Bank, selected by the Compensation Committee of the Board of Directors, to incentivize the further success of the Company, and replaces the 2014 Restricted Stock Plan. The aggregate number of shares of common stock of the Company available for issuance under the Plan is 350,000 shares . As of March 31, 2024, a total of 217,514 restricted shares were granted under the 2014 Plan, of which 83,107 shares were unvested. The 2014 Plan shares granted and vested resulted in $302 thousand and $249 thousand in share-based compensation expense for the three months ended March 31, 2024 and 2023, respectively. 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. Restricted shares granted to employees vest in equal amounts on the anniversary of the grant date over the vesting period and the expense is a component of salaries and benefits expense on the Consolidated Statement of Income. The employee grant vesting period is determined by the terms of each respective grant, with vesting periods generally between one The following data shows the amounts used in computing basic and diluted earnings per common share: Three Months Ended March 31, (In thousands, except per share data) 2024 2023 Net income $ 12,133 $ 11,227 Weighted average common shares outstanding (basic) 16,567,902 15,886,186 Effect of dilutive unvested restricted stock grants 45,471 44,935 Weighted average common shares outstanding (diluted) 16,613,373 15,931,121 Basic earnings per common share $ 0.73 $ 0.71 Diluted earnings per common share 0.73 0.70 There were no antidilutive instruments at March 31, 2024 and 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 (which ceased operating during the first quarter of 2024) and MPB Risk Services, LLC, and MPB Launchpad Fund I, LLC. As of March 31, 2024, 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. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. Mid Penn believes the information presented is not misleading, and the disclosures are adequate. For comparative purposes, the March 31, 2023 and December 31, 2023 balances have been reclassified, when necessary, to conform to the 2024 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. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2023 Annual Report. |
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 credit losses, the expected cash flows and collateral values associated with loans that are individually evaluated for credit losses, 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. |
Accounting Standards adopted and Updated Significant Accounting Policy | Accounting Standards adopted and Updated Significant Accounting Policy On January 1, 2023, the Corporation adopted ASU 2016-13, Financial Instruments - Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments , which replaced the incurred loss methodology, and is referred to as CECL. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, including loans and HTM debt securities. It also applies to OBS credit exposures (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASC Topic 842. Prior to 2024, the provision for OBS credit losses was included in Other Expenses on the Statement of Income. As of March 31, 2024, the provision for OBS credit losses is included in Provision for Credit Losses on the Income Statement. Prior periods have been updated for presentation. All other significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the 2023 Annual Report. Those significant accounting policies are unchanged at March 31, 2024. Accounting Standards Pending Adoption ASU No. 2023-02: The FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The amendments in this update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The amendments in this update also remove certain guidance for Qualified Affordable Housing Project investments and require the application of the delayed equity contribution guidance to all tax equity investments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and must be applied on either a modified retrospective or a retrospective basis. Early adoption is permitted in any interim period, however if adopted in an interim period the entity shall adopt the amendments in this update as of the beginning of the fiscal year that includes the interim period. The Corporation does not expect the adoption of ASU No. 2023-02 to have a material impact on its consolidated financial statements. ASU 2023-06: The FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . ASU 2023-06 amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. ASU 2023-06 is not expected to have a significant impact on our financial statements. ASU 2023-07: The FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ASU 2023-07 amends the ASC to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 is not expected to have a significant impact on our financial statements. ASU 2023-09 : The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ASU 2023-09 amends the ASC to enhance income tax disclosures by requiring entities to disclose income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes. Additionally, entities are required to disclose amounts greater than 5% of the total income taxes paid to an individual jurisdiction The amendments are effective for annual periods beginning after December 15, 2025. ASU 2023-09 is not expected to have a significant impact on our financial statements. ASU 2024-01 —The FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718): Scope application of profits interest and similar awards The amendments in the ASU apply to all reporting entities that account for profits interest awards as compensation to employees or nonemployees in return for goods or services. The amendments are effective for annual periods beginning after December 15, 2025, and interim periods within those annual periods. ASU 2024-01 is not expected to have a significant impact on our financial statements. ASU 2024-02 : The FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements This ASU contains amendments to the Codification that remove references to various FASB Concepts Statements. The amendments are effective for fiscal years beginning after Dec. 15, 2025. Early adoption is permitted. ASU 2024-02 is not expected to have a significant impact on our financial statements. |
AFS and HTM Securities | AFS Securities ASU 2016-13 makes targeted improvements to the accounting for credit losses on AFS securities. The concept of other-than-temporarily impaired has been replaced with the allowance for credit losses. Unlike HTM securities, AFS securities are evaluated on an individual level and pooling of securities is not allowed. Quarterly, Mid Penn evaluates if any security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, Mid Penn performs further analysis as outlined below: • Review the extent to which the fair value is less than the amortized cost and observe the security’s lowest credit rating as reported by third-party credit ratings companies. • The securities that violate the credit loss triggers above would be subjected to additional analysis that may include, but is not limited to: changes in market interest rates, changes in securities credit ratings, security type, service area economic factors, financial performance of the issuer/or obligor of the underlying issue and third-party guarantee. • If Mid Penn determines that a credit loss exists, the credit portion of the allowance will be measured using a DCF analysis using the effective interest rate as of the security’s purchase date. The amount of credit loss Mid Penn records will be limited to the amount by which the amortized cost exceeds the fair value. The DCF analysis utilizes contractual maturities, as well as third-party credit ratings and cumulative default rates published annually by a reputable third-party. HTM Securities ASU 2016-13 requires institutions to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risks exist. Mid Penn uses several levels of segmentation in order to measure expected credit losses: • The portfolio is segmented into agency and non-agency securities. • The non-agency securities are separated into state and political subdivision obligations and corporate debt securities. Each individual segment is categorized by third-party credit ratings. |
Collateral Dependent Loans | Collateral-Dependent Loans A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, Mid Penn elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, Mid Penn records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate, including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land. Allowance for Credit Losses, effective January 1, 2023 Mid Penn’s ACL - loans methodology is based upon guidance within FASB ASC Subtopic 326-20, as well as regulatory guidance from the FDIC, its primary federal regulator. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the PCL and reduced by the charge off of loan amounts, net of recoveries. The loan loss estimation process involves procedures to appropriately consider the unique characteristics of Mid Penn’s loan portfolio segments. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Evaluations of the portfolio and individual credits are inherently subjective, as they require estimates, assumptions and judgments as to the facts and circumstances of particular situations. Determining the appropriateness of the allowance is complex and requires judgement by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the ACL and credit loss expense. Mid Penn estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Mid Penn uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool. The qualitative portion of the allowance is based on general economic conditions and other internal and external factors affecting Mid Penn as a whole, as well as specific loans. Factors considered include the following: lending process, concentrations of credit, and credit quality. The quantitative and qualitative portions of the allowance are added together to determine the total ACL, which reflects management’s expectations of future conditions based on reasonable and supportable forecasts. The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics. The commercial real estate and residential mortgage loan portfolio segments include loans for both commercial and residential properties that are secured by real estate. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and, if applicable, guarantor, experience with similar projects in the past, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance, in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered when applicable. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing. The commercial and industrial loan portfolio segment includes commercial loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory, equipment and fixed asset purchases that are secured by those assets, and term financing for those within Mid Penn’s geographic markets. Mid Penn’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information, and evaluation of underlying collateral to support the credit. The consumer loan portfolio segment is comprised of loans which are underwritten after evaluating a borrower’s capacity, credit and collateral. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets and level of equity in the property. Credit is assessed using a credit report that provides credit scores and the borrower’s current and past information about their credit history. Loan-to-value and debt-to-income ratios, loan amount and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends, such as conditions that negatively affect housing prices and demand and levels of unemployment. Mid Penn utilizes a DCF method to estimate the quantitative portion of the allowance for credit losses for loan pools. The DCF is based off of historical losses, including peer data, which is correlated to national unemployment and GDP. The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s coupon rate to arrive at the discounted cash flow based quantitative loss. The prepayment studies are updated quarterly by a third-party for each applicable pool. Mid Penn determined that reasonable and supportable forecasts could be made for a twelve-month period for all of its loan pools. To the extent the lives of the loans in the LHFI portfolio extend beyond this forecast period, Mid Penn uses a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans. Qualitative factors used in the ACL methodology include the following: • Lending process • Concentrations of credit • Peer Group Divergence The ACL for individual loans, such as non-accrual and PCD, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for the estimated cost to sell. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Real Estate Administration Group to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off. Mid Penn may also purchase loans or acquire loans through a business combination. At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as PCD loans. In its evaluation of whether a loan has experienced more than insignificant deterioration in credit quality since origination, Mid Penn takes into consideration loan grades, past due and nonaccrual status. Mid Penn may also consider external credit rating agency ratings for borrowers and for non-commercial loans, FICO score or band, probability of default levels, and number of times past due. At the purchase or acquisition date, the amortized cost basis of PCD loans is equal to the purchase price and an initial estimate of credit losses. The initial recognition of expected credit losses on PCD loans has no impact on net income. When the initial measurement of expected credit losses on PCD loans is calculated on a pooled loan basis, the expected credit losses are allocated to each loan within the pool. Any difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted (or amortized) into interest income over the life of the loan. Subsequent changes to the ACL on PCD loans are recorded through the PCL. For purchased loans that are not deemed to have experienced more than insignificant credit deterioration since origination and are therefore not deemed PCD, any discounts or premiums included in the purchase price are accreted (or amortized) over the contractual life of the individual loan. Loans are charged off against the ACL, with any subsequent recoveries credited back to the ACL account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off. |
Fair Value Measurement | 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. Mid Penn groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. The fair value hierarchy is as follows: Level 1 - Inputs that represent quoted prices for identical instruments in active markets. Level 2 - Inputs that represent quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Inputs that are largely unobservable, as little or no market data exists for the instrument being valued. |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Summary of the Final Estimated Fair Value of the Assets Acquired and Liabilities and Equity Assumed | Estimated fair values of the assets acquired and liabilities assumed in the Brunswick Acquisition as of the closing date are as follows: (In thousands) Assets acquired: Cash and cash equivalents $ 21,029 Federal funds sold 7,604 Investment securities 2,423 Loans 324,471 Goodwill 12,800 Core deposit intangible 999 Premises and equipment 4,568 Cash surrender value of life insurance 3,361 Deferred income taxes 6,393 Accrued interest receivable 1,171 Other assets 5,884 Total assets acquired 390,703 Liabilities assumed: Deposits: Noninterest-bearing demand 60,888 Interest-bearing demand 11,767 Money Market 47,362 Savings 14,203 Time 147,163 Long-term debt 60,136 Accrued interest payable 1,911 Other liabilities 1,613 Total liabilities assumed 345,043 Consideration paid $ 45,660 Cash paid $ 27,565 Fair value of common stock issued 18,095 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Securities Financing Transactions Disclosures [Abstract] | |
Unrealized Gain (Loss) on Investments | The amortized cost and estimated fair value of investment securities for the periods presented: March 31, 2024 (In thousands) Amortized Gross Gross Unrealized Estimated Available-for-sale U.S. Treasury and U.S. government agencies $ 36,664 $ — $ 1,174 $ 35,490 Mortgage-backed U.S. government agencies 165,402 — 18,637 146,765 State and political subdivision obligations 4,326 — 693 3,633 Corporate debt securities 35,737 — 3,993 31,744 Total available-for-sale debt securities 242,129 — 24,497 217,632 Held-to-maturity U.S. Treasury and U.S. government agencies $ 245,839 $ — $ 30,821 $ 215,018 Mortgage-backed U.S. government agencies 42,376 — 5,869 36,507 State and political subdivision obligations 83,318 2 6,958 76,362 Corporate debt securities 25,465 — 2,148 23,317 Total held-to-maturity debt securities 396,998 2 45,796 351,204 Total $ 639,127 $ 2 $ 70,293 $ 568,836 December 31, 2023 (In thousands) Amortized Gross Gross Unrealized Estimated Available-for-sale U.S. Treasury and U.S. government agencies $ 36,637 $ — $ 988 $ 35,649 Mortgage-backed U.S. government agencies 169,184 — 16,501 152,683 State and political subdivision obligations 4,332 — 686 3,646 Corporate debt securities 35,733 — 4,156 31,577 Total available-for-sale debt securities $ 245,886 $ — $ 22,331 $ 223,555 Held-to-maturity U.S. Treasury and U.S. government agencies $ 245,805 $ 2 $ 28,676 $ 217,131 Mortgage-backed U.S. government agencies 43,818 — 5,523 38,295 State and political subdivision obligations 84,035 11 6,486 77,560 Corporate debt securities 25,470 — 935 24,535 Total held-to-maturity debt securities 399,128 13 41,620 357,521 Total $ 645,014 $ 13 $ 63,951 $ 581,076 |
Schedule of Fair Value and Unrealized Loss on Debt Security Investments in a Continuous Unrealized Loss Position | The following tables present gross unrealized losses and fair value of debt investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the periods presented: (Dollars in thousands) Less Than 12 Months 12 Months or More Total March 31, 2024 Number Estimated Gross Number Estimated Gross Number Estimated Gross Available-for-sale debt securities: U.S. Treasury and U.S. government agencies — $ — $ — 19 $ 35,490 $ 1,174 19 $ 35,490 $ 1,174 Mortgage-backed U.S. government agencies — — — 93 146,765 18,637 93 146,765 18,637 State and political subdivision obligations — — — 8 3,633 693 8 3,633 693 Corporate debt securities — — — 18 31,744 3,993 18 31,744 3,993 Total available-for-sale debt securities — $ — $ — 138 $ 217,632 $ 24,497 138 $ 217,632 $ 24,497 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies — — — 145 215,018 30,821 145 215,018 30,821 Mortgage-backed U.S. government agencies — — — 64 36,507 5,869 64 36,507 5,869 State and political subdivision obligations 16 5,846 86 177 70,201 6,872 193 76,047 6,958 Corporate debt securities — — — 15 23,317 2,148 15 23,317 2,148 Total held-to-maturity debt securities 16 5,846 86 401 345,043 45,710 417 350,889 45,796 Total 16 $ 5,846 $ 86 539 $ 562,675 $ 70,207 555 $ 568,521 $ 70,293 (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2023 Number Estimated Gross Number Estimated Gross Number Estimated Gross Available-for-sale securities: U.S. Treasury and U.S. government agencies — $ — $ — 19 $ 35,649 $ 988 19 $ 35,649 $ 988 Mortgage-backed U.S. government agencies 1 4,015 26 92 148,668 16,475 93 152,683 16,501 State and political subdivision obligations — — — 8 3,646 686 8 3,646 686 Corporate debt securities 1 410 90 17 31,167 4,066 18 31,577 4,156 Total available-for-sale securities 2 4,425 116 136 219,130 22,215 138 223,555 22,331 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 1 $ 2,002 $ — 144 $ 215,129 $ 28,676 145 $ 217,131 $ 28,676 Mortgage-backed U.S. government agencies — — — 64 38,295 5,523 64 38,295 5,523 State and political subdivision obligations 25 8,729 63 170 68,831 6,423 195 77,560 6,486 Corporate debt securities 1 936 57 14 23,599 878 15 24,535 935 Total held to maturity securities 27 11,667 120 392 345,854 41,500 419 357,521 41,620 Total 29 $ 16,092 $ 236 528 $ 564,984 $ 63,715 557 $ 581,076 $ 63,951 |
Investments Classified by Contractual Maturity Date | The table below illustrates the contractual maturity of debt investment securities at amortized cost and estimated fair value. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without call or prepayment penalties. (In thousands) Available-for-sale Held-to-maturity March 31, 2024 Amortized Fair Amortized Fair Due in 1 year or less $ 12,496 $ 12,380 $ 13,047 $ 12,906 Due after 1 year but within 5 years 34,425 32,819 125,456 116,182 Due after 5 years but within 10 years 27,475 23,743 195,525 168,141 Due after 10 years 2,331 1,925 20,594 17,468 76,727 70,867 354,622 314,697 Mortgage-backed securities 165,402 146,765 42,376 36,507 $ 242,129 $ 217,632 $ 396,998 $ 351,204 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses - Loans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivable Credit Quality Indicators | Loans, net of unearned income, are summarized as follows by portfolio segment: (In thousands) March 31, 2024 December 31, 2023 Commercial real estate CRE Nonowner Occupied $ 1,174,774 $ 1,149,553 CRE Owner Occupied 622,574 629,904 Multifamily 334,952 309,059 Farmland 212,018 212,690 Total Commercial real estate 2,344,318 2,301,206 Commercial and industrial 671,395 675,079 Construction Residential Construction 103,861 92,843 Other Construction 383,428 362,624 Total Construction 487,289 455,467 Residential mortgage 1-4 Family 1st Lien 334,557 339,142 1-4 Family Rental 340,052 341,937 HELOC and Junior Liens 132,703 132,795 Total Residential Mortgage 807,312 813,874 Consumer 7,135 7,166 Total loans $ 4,317,449 $ 4,252,792 March 31, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized (In thousands) 2024 2023 2022 2021 2020 Prior Total Commercial real estate Pass $ 49,466 $ 289,970 $ 568,000 $ 372,639 $ 293,680 $ 688,117 $ 43,525 $ 2,305,397 Special mention — 188 434 — — 16,407 191 17,220 Substandard or lower — — 2,990 206 3,146 15,313 46 21,701 Total commercial real estate 49,466 290,158 571,424 372,845 296,826 719,837 43,762 2,344,318 Commercial and industrial Pass 33,909 147,232 97,313 62,551 28,200 104,941 189,231 663,377 Special mention — 79 61 282 — 2,280 2,272 4,974 Substandard or lower — — — 591 — 1,938 515 3,044 Total commercial and industrial 33,909 147,311 97,374 63,424 28,200 109,159 192,018 671,395 Construction Pass 13,362 164,703 185,710 56,475 20,419 16,024 28,785 485,478 Special mention — — — — 1,811 — — 1,811 Substandard or lower — — — — — — — — Total construction 13,362 164,703 185,710 56,475 22,230 16,024 28,785 487,289 Residential mortgage Performing 25,512 145,753 148,963 109,236 87,274 197,768 84,656 799,162 Non-performing — 178 — 79 1,666 6,129 98 8,150 Total residential mortgage 25,512 145,931 148,963 109,315 88,940 203,897 84,754 807,312 Gross charge offs — — (21) — — (7) — (28) Net charge offs — — (21) — — (7) — (28) Consumer Performing 1,550 1,251 622 591 221 281 2,619 7,135 Non-performing — — — — — — — — Total consumer 1,550 1,251 622 591 221 281 2,619 7,135 Gross charge offs (16) — (2) — — (4) — (22) Current period recoveries 5 — — — — 1.00 — 6 Net charge offs (11) — (2) — — (3) — (16) Total Pass $ 96,737 $ 601,905 $ 851,023 $ 491,665 $ 342,299 $ 809,082 $ 261,541 $ 3,454,252 Special mention — 267 495 282 1,811 18,687 2,463 24,005 Substandard or lower — — 2,990 797 3,146 17,251 561 24,745 Performing 27,062 147,004 149,585 109,827 87,495 198,049 87,275 806,297 Nonperforming — 178 — 79 1,666 6,129 98 8,150 Total $ 123,799 $ 749,354 $ 1,004,093 $ 602,650 $ 436,417 $ 1,049,198 $ 351,938 $ 4,317,449 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized (In thousands) 2023 2022 2021 2020 2019 Prior Total Commercial real estate Pass $ 271,655 $ 556,801 $ 386,911 $ 297,746 $ 178,434 $ 528,326 $ 38,261 $ 2,258,134 Special mention 194 — — — 6,009 10,482 186 16,871 Substandard or lower — 5,209 208 3,162 229 17,345 48 26,201 Total commercial real estate 271,849 562,010 387,119 300,908 184,672 556,153 38,495 2,301,206 Gross charge offs — — — — — (16) — (16) Net charge offs — — — — — (16) — (16) Commercial and industrial Pass 158,824 106,714 68,448 29,961 50,206 57,892 188,714 660,759 Special mention — 89 2,224 — 227 2,200 4,391 9,131 Substandard or lower — — 662 — — 1,978 2,549 5,189 Total commercial and industrial 158,824 106,803 71,334 29,961 50,433 62,070 195,654 675,079 Gross charge offs — (100) — (111) — (27) — (238) Net charge offs — (100) — (111) — (27) — (238) Construction Pass 153,596 181,214 54,658 22,357 10,247 5,856 23,262 451,190 Special mention — — — 1,447 — — — 1,447 Substandard or lower — 573 — — — 2,257 — 2,830 Total construction 153,596 181,787 54,658 23,804 10,247 8,113 23,262 455,467 Residential mortgage Performing 158,634 153,203 111,610 90,382 27,863 178,898 87,723 808,313 Non-performing — — 93 1,470 — 3,998 — 5,561 Total residential mortgage 158,634 153,203 111,703 91,852 27,863 182,896 87,723 813,874 Gross charge offs — — — — — (13) — (13) Current period recoveries — — — — — 38 — 38 Net recoveries — — — — — 25 — 25 Consumer Performing 2,361 754 649 273 223 103 2,803 7,166 Total consumer 2,361 754 649 273 223 103 2,803 7,166 Gross charge offs (86) — (10) (9) — (30) — (135) Current period recoveries 26 — — 1 — 5 — 32 Net charge offs (60) — (10) (8) — (25) — (103) Total Pass $ 584,075 $ 844,729 $ 510,017 $ 350,064 $ 238,887 $ 592,074 $ 250,237 $ 3,370,083 Special mention 194 89 2,224 1,447 6,236 12,682 4,577 27,449 Substandard or lower — 5,782 870 3,162 229 21,580 2,597 34,220 Performing 160,995 153,957 112,259 90,655 28,086 179,001 90,526 815,479 Nonperforming — — 93 1,470 — 3,998 — 5,561 Total $ 745,264 $ 1,004,557 $ 625,463 $ 446,798 $ 273,438 $ 809,335 $ 347,937 $ 4,252,792 |
Loan Portfolio Summarized by the Past Due Status | The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of March 31, 2024 and December 31, 2023, are summarized as follows: (In thousands) 30-59 60-89 Greater Total Past Current Total Loans Loans March 31, 2024 Commercial real estate $ 9,647 $ — $ 778 $ 10,425 $ 2,333,893 $ 2,344,318 $ — Commercial and industrial — 87 1,771 1,858 669,537 671,395 — Construction — — — — 487,289 487,289 — Residential mortgage 1,328 387 2,201 3,916 803,396 807,312 — Consumer 18 — 25 43 7,092 7,135 25 Total $ 10,993 $ 474 $ 4,775 $ 16,242 $ 4,301,207 $ 4,317,449 $ 25 (In thousands) 30-59 60-89 Greater Total Past Current Total Loans Loans December 31, 2023 Commercial real estate $ 5,073 $ 682 $ 2,974 $ 8,729 $ 2,292,477 $ 2,301,206 $ — Commercial and industrial 638 24 1,270 1,932 673,147 675,079 — Construction — 270 2,559 2,829 452,638 455,467 — Residential mortgage 4,648 267 2,518 7,433 806,441 813,874 — Consumer 41 31 — 72 7,094 7,166 — Total $ 10,400 $ 1,274 $ 9,321 $ 20,995 $ 4,231,797 $ 4,252,792 $ — |
Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration | Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of March 31, 2024 and December 31, 2023 are summarized as follows: March 31, 2024 December 31, 2023 (In thousands) With a Related Allowance Without a Related Allowance Total With a Related Allowance Without a Related Allowance Total Commercial real estate $ 449 $ 4,139 $ 4,588 $ 454 $ 6,133 $ 6,587 Commercial and industrial 1,202 1,156 2,358 1,222 64 1,286 Construction — — — — 2,559 2,559 Residential mortgage 41 3,402 3,443 2 3,782 3,784 Consumer — — — — — — $ 1,692 $ 8,697 $ 10,389 $ 1,678 $ 12,538 $ 14,216 |
Allowance and Recorded Investment in Financing Receivables | The following tables present the activity in the ACL - loans by portfolio segment for the three months ended March 31, 2024 and three months ended March 31, 2023: (In thousands) As of March 31, 2024 Balance at Charge offs Recoveries Net loans (charged off) recovered (Benefit)/Provision for credit losses Balance at Commercial Real Estate CRE Nonowner Occupied 10,267 — — — 150 10,417 CRE Owner Occupied 5,646 — — — (44) 5,602 Multifamily 2,202 — — — 168 2,370 Farmland 2,064 — — — (62) 2,002 Commercial and industrial 7,131 — — — (631) 6,500 Construction Residential Construction 1,256 — — — (80) 1,176 Other Construction 2,146 — — — 25 2,171 Residential Mortgage 1-4 Family 1st Lien 1,207 (7) — (7) 71 1,271 1-4 Family Rental 1,859 (21) — (21) (299) 1,539 HELOC and Junior Liens 389 — — — 68 457 Consumer 20 (22) 6 (16) 15 19 Total 34,187 (50) 6 (44) (619) 33,524 (In thousands) Balance at CECL Impact Charge offs Recoveries Net loans (charged off) recovered Provision/(Benefit) for credit losses Balance at Commercial Real Estate CRE Nonowner Occupied $ 8,284 $ 259 $ — $ — $ — $ (368) $ 8,175 CRE Owner Occupied 2,916 91 (16) — (16) 88 3,079 Multifamily 1,111 35 — — — 13 1,159 Farmland 831 26 — — — 42 899 Commercial and industrial 4,593 6,601 (111) — (111) 186 11,269 Construction Residential Construction — 1,270 — — — 153 1,423 Other Construction — 1,931 — — — 277 2,208 Residential Mortgage 1-4 Family 1st Lien 370 1,307 (4) — (4) (317) 1,356 1-4 Family Rental 288 731 — 30 30 17 1,066 HELOC and Junior Liens 661 (230) — — — 21 452 Consumer 29 154 (19) 7 (12) 8 179 Unallocated (126) (244) — — — 370 — Total $ 18,957 $ 11,931 $ (150) $ 37 $ (113) $ 490 $ 31,265 The following table presents the ACL for loans and the amortized cost basis of the loans by the measurement methodology used as of March 31, 2024 and December 31, 2023: (In thousands) ACL - Loans Loans March 31, 2024 Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total ACL - Loans Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total Loans Commercial real estate CRE Nonowner Occupied $ 10,061 $ 356 $ 10,417 $ 1,172,396 $ 2,378 $ 1,174,774 CRE Owner Occupied 5,602 — 5,602 620,534 2,040 622,574 Multifamily 2,351 19 2,370 334,781 171 334,952 Farmland 2,002 — 2,002 212,018 — 212,018 Commercial and industrial 5,761 739 6,500 669,037 2,358 671,395 Construction Residential Construction 1,176 — 1,176 103,861 — 103,861 Other Construction 2,171 — 2,171 383,428 — 383,428 Residential mortgage 1-4 Family 1st Lien 1,271 — 1,271 332,822 1,735 334,557 1-4 Family Rental 1,535 4 1,539 339,696 356 340,052 HELOC and Junior Liens 457 — 457 131,351 1,352 132,703 Consumer 19 — 19 7,135 — 7,135 Total $ 32,406 $ 1,118 $ 33,524 $ 4,307,059 $ 10,390 $ 4,317,449 (In thousands) ACL - Loans Loans December 31, 2023 Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total ACL - Loans Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total Loans Commercial real estate CRE Nonowner Occupied $ 9,906 $ 361 $ 10,267 $ 1,145,048 $ 4,505 $ 1,149,553 CRE Owner Occupied 5,646 — 5,646 627,995 1,909 629,904 Multifamily 2,190 12 2,202 308,886 173 309,059 Farmland 2,064 — 2,064 212,690 — 212,690 Commercial and industrial 6,419 712 7,131 673,793 1,286 675,079 Construction Residential Construction 1,256 — 1,256 92,270 573 92,843 Other Construction 2,146 — 2,146 360,368 2,256 362,624 Residential mortgage 1-4 Family 1st Lien 1,207 — 1,207 337,267 1,875 339,142 1-4 Family Rental 1,857 2 1,859 341,236 701 341,937 HELOC and Junior Liens 389 — 389 131,587 1,208 132,795 Consumer 20 — 20 7,166 — 7,166 Total $ 33,100 $ 1,087 $ 34,187 $ 4,238,306 $ 14,486 $ 4,252,792 |
Troubled Debt Restructurings | Information related to loans modified (by type of modification), whereby the borrower was experiencing financial difficulty at the time of modification, is set forth in the following table: (In thousands) Interest Only Term Extension Combination: Total % of Total Class of Financing Receivable Three months ended March 31, 2024 Residential Mortgage $ — $ — $ 92 $ 92 0.01 % Total $ — $ — $ 92 $ 92 0.01 % (In thousands) Interest Only Term Extension Combination: Total % of Total Class of Financing Receivable Three months ended March 31, 2023 Commercial real estate $ 51 $ — $ 180 $ 231 0.04 % Total $ 51 $ — $ 180 $ 231 0.04 % |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deposits [Abstract] | |
Deposit Liabilities, Type | Deposits consisted of the following as of March 31, 2024 and December 31, 2023: (Dollars in thousands) March 31, 2024 % of Total Deposits December 31, 2023 % of Total Deposits Noninterest-bearing demand deposits $ 807,861 18.4 % $ 801,312 18.4 % Interest-bearing demand deposits 923,120 21.1 % 947,372 21.8 % Money market 874,833 20.0 % 850,674 19.6 % Savings 284,893 6.5 % 288,404 6.6 % Total demand and savings 2,890,707 66.0 % 2,887,762 66.4 % Time 1,488,398 34.0 % 1,458,450 33.6 % Total deposits $ 4,379,105 100.0 % $ 4,346,212 100.0 % Overdrafts $ 558 0.01 % $ 315 0.01 % |
Time Deposits By Maturity Date Table | The scheduled maturities of time deposits at March 31, 2024 were as follows: Time Deposits (In thousands) Less than $250,000 $250,000 or more Maturing in 2024 $ 827,090 $ 279,833 Maturing in 2025 238,921 66,846 Maturing in 2026 38,245 3,463 Maturing in 2027 17,642 1,194 Maturing in 2028 11,241 572 Maturing thereafter 3,059 292 $ 1,136,198 $ 352,200 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amount and Fair Value of Mortgage Banking Derivative Financial Instruments | Information related to loan level swaps is set forth in the following table: March 31, 2024 December 31, 2023 (Dollars in thousands) Interest rate swaps on loans with customers Notional amount $ 201,405 $ 187,192 Weighted average remaining term (years) 5.92 6.24 Receive fixed rate (weighted average) 4.56 % 4.59 % Pay variable rate (weighted average) 7.48 % 7.50 % Estimated fair value (1) $ 11,315 $ 10,484 March 31, 2024 December 31, 2023 (Dollars in thousands) Interest rate swaps on loans with correspondents Notional amount $ 201,405 $ 187,192 Weighted average remaining term (years) 5.92 6.24 Receive variable rate (weighted average) 4.56 % 7.50 % Pay fixed rate (weighted average) 7.48 % 4.59 % Estimated fair value $ 11,315 $ 10,484 (1) The net amount of the estimated fair value is disclosed in Other Liabilities on the Consolidated Balance Sheet. Information related to cash flow hedges is set forth in the following table: March 31, 2024 December 31, 2023 (Dollars in thousands) Cash flow hedges Notional amount $ 190,000 $ 190,000 Weighted average remaining term (years) 1.97 2.22 Pay fixed rate (weighted average) 3.74 % 3.74 % Receive variable rate (weighted average) 4.07 % 4.07 % Estimated fair value $ 3,228 $ 1,460 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes | The changes in each component of accumulated other comprehensive loss, net of taxes, are as follows: (I n thousands ) Unrealized Loss on Unrealized Defined Benefit Total Balance at December 31, 2023 $ (17,339) $ 820 $ (118) $ (16,637) OCI before reclassifications (1,711) 1,410 8 (293) Amounts reclassified from AOCI — — (17) (17) Balance at March 31, 2024 $ (19,050) $ 2,230 $ (127) (16,947) Balance at December 31, 2022 $ (19,327) $ — $ 111 $ (19,216) OCI before reclassifications 1,977 (128) 5 1,854 Amounts reclassified from AOCI — — (12) (12) Balance at March 31, 2023 $ (17,350) $ (128) $ 104 $ (17,374) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: U.S. Treasury and U.S. government agencies $ — $ 35,490 $ — $ 35,490 Mortgage-backed U.S. government agencies — 146,765 — 146,765 State and political subdivision obligations — 3,633 — 3,633 Corporate debt securities — 31,744 — 31,744 Equity securities 431 — — 431 Loans held for sale — 4,581 — 4,581 Other assets: Derivative assets — 14,543 — 14,543 Total $ 431 $ 236,756 $ — $ 237,187 December 31, 2023 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: U.S. Treasury and U.S. government agencies $ — $ 35,649 $ — $ 35,649 Mortgage-backed U.S. government agencies — 152,683 — 152,683 State and political subdivision obligations — 3,646 — 3,646 Corporate debt securities — 31,577 — 31,577 Equity securities 438 — — 438 Loans held for sale — 3,855 — 3,855 Other assets: Derivative assets — 11,944 — 11,944 Total $ 438 $ 239,354 $ — $ 239,792 |
Fair Value Measurements, Nonrecurring | The following table illustrates Level 3 financial instruments measured at fair value on a nonrecurring basis: (In thousands) March 31, 2024 December 31, 2023 Individually evaluated loans, net of ACL $ 9,272 $ 13,399 Foreclosed assets held for sale 5,110 293 |
Fair Value, by Balance Sheet Grouping | The following tables summarize the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn's financial instruments as of the periods presented: March 31, 2024 Carrying Estimated Fair Value (In thousands) Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 68,085 $ 68,085 $ — $ — $ 68,085 Available-for-sale investment securities 217,632 — 217,632 — 217,632 Held-to-maturity investment securities 396,998 — 351,204 — 351,204 Equity securities 431 431 — — 431 Loans held for sale 4,581 — 4,581 — 4,581 Net loans 4,283,925 — — 4,285,266 4,285,266 Restricted investment in bank stocks 17,446 17,446 — — 17,446 Accrued interest receivable 26,975 26,975 — — 26,975 Derivative assets 14,543 — 14,543 — 14,543 Financial instruments - liabilities Deposits $ 4,379,105 $ — $ 4,368,088 $ — $ 4,368,088 Short-term borrowings 271,849 — 271,849 — 271,849 Long-term debt (1) 20,768 — 20,768 — 20,768 Subordinated debt 46,201 — 40,332 — 40,332 Accrued interest payable 16,330 16,330 — — 16,330 Derivative liabilities 11,315 — 11,315 — 11,315 (1) Long-term debt excludes finance lease obligations. December 31, 2023 Estimated Fair Value (In thousands) Carrying Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 96,763 $ 96,763 $ — $ — $ 96,763 Available-for-sale investment securities 223,555 — 223,555 — 223,555 Held-to-maturity investment securities 399,128 — 357,521 — 357,521 Equity securities 438 438 — — 438 Loans held for sale 3,855 — 3,855 — 3,855 Net loans 4,218,605 — — 4,221,926 4,221,926 Restricted investment in bank stocks 16,768 16,768 — — 16,768 Accrued interest receivable 25,820 25,820 — — 25,820 Derivative assets 11,944 — 11,944 — 11,944 Financial instruments - liabilities Deposits $ 4,346,212 $ — $ 4,337,723 $ — $ 4,337,723 Short-term debt 241,532 — 241,532 — 241,532 Long-term debt (1) 55,806 — 55,081 — 55,081 Subordinated debt 46,354 — 39,515 — 39,515 Accrued interest payable 14,257 14,257 — — 14,257 Derivative liabilities 10,484 — 10,484 — 10,484 (1) Long-term debt excludes finance lease obligations. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023. (Dollars in thousands) March 31, 2024 December 31, 2023 FHLB fixed rate instruments: Due January 2024, 1.10% $ — $ 10,000 Due March 2024, 5.60% — 25,000 Due February 2026, 4.51% 20,000 20,000 Due August 2026, 4.80% 746 782 Due February 2027, 6.71% 22 24 Total FHLB fixed rate instruments 20,768 55,806 Lease obligations included in long-term debt 3,173 3,197 Total long-term debt $ 23,941 $ 59,003 |
Common Stock and Earnings Per_2
Common Stock and Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following data shows the amounts used in computing basic and diluted earnings per common share: Three Months Ended March 31, (In thousands, except per share data) 2024 2023 Net income $ 12,133 $ 11,227 Weighted average common shares outstanding (basic) 16,567,902 15,886,186 Effect of dilutive unvested restricted stock grants 45,471 44,935 Weighted average common shares outstanding (diluted) 16,613,373 15,931,121 Basic earnings per common share $ 0.73 $ 0.71 Diluted earnings per common share 0.73 0.70 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2024 nonbankSubsidiary Segment | |
Accounting Policies [Abstract] | |
Number of nonbank subsidiaries | nonbankSubsidiary | 4 |
Number of reportable segments | Segment | 1 |
Business Combination - Narrativ
Business Combination - Narrative (Details) $ in Thousands | May 19, 2023 USD ($) branch shares | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 127,031 | $ 127,031 | |
Brunswick Bancorp Acquisition | |||
Business Acquisition [Line Items] | |||
Additional branches | branch | 5 | ||
Equity interest issued or issuable, number of shares (in shares) | shares | 849,510 | ||
Payments to acquire businesses gross | $ 27,565 | ||
Consideration transferred | 45,700 | ||
Goodwill | 12,800 | ||
Goodwill, expected tax deductible amount | 0 | ||
Amount at purchase price | 18,700 | ||
PCD Loans | 336 | ||
Discount (premium) | 2,400 | ||
Amount at par value | 16,300 | ||
Provision expense | $ 2,000 |
Business Combination - Estimate
Business Combination - Estimated Fair Value of Assets Acquired (Details) - USD ($) $ in Thousands | May 19, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Assets acquired: | |||
Goodwill | $ 127,031 | $ 127,031 | |
Brunswick Bancorp Acquisition | |||
Assets acquired: | |||
Cash and cash equivalents | $ 21,029 | ||
Federal funds sold | 7,604 | ||
Investment securities | 2,423 | ||
Loans | 324,471 | ||
Goodwill | 12,800 | ||
Core deposit intangible | 999 | ||
Premises and equipment | 4,568 | ||
Cash surrender value of life insurance | 3,361 | ||
Deferred income taxes | 6,393 | ||
Accrued interest receivable | 1,171 | ||
Other assets | 5,884 | ||
Total assets acquired | 390,703 | ||
Deposits: | |||
Noninterest-bearing demand | 60,888 | ||
Interest-bearing demand | 11,767 | ||
Money Market | 47,362 | ||
Savings | 14,203 | ||
Time | 147,163 | ||
Long-term debt | 60,136 | ||
Accrued interest payable | 1,911 | ||
Other liabilities | 1,613 | ||
Total liabilities assumed | 345,043 | ||
Consideration paid | 45,660 | ||
Cash paid | 27,565 | ||
Fair value of common stock issued | $ 18,095 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Securities Financing Transactions Disclosures [Abstract] | |||
AFS accrued interest | $ 982 | ||
Held-to-maturity securities | 396,998 | $ 399,128 | |
HTM accrued interest | 2,200 | ||
Available-for-sale securities pledged as collateral | 383,900 | 380,300 | |
Letter of credit outstanding, amount | 142,900 | $ 153,500 | |
Net gains | $ 0 | $ 0 | |
Debt Securities, Held-to-Maturity, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accrued interest receivable |
Investment Securities - Unreali
Investment Securities - Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Available-for-sale | ||
Amortized Cost | $ 242,129 | $ 245,886 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 24,497 | 22,331 |
Estimated Fair Value | 217,632 | 223,555 |
Held-to-maturity | ||
Amortized Cost | 396,998 | 399,128 |
Gross Unrealized Gains | 2 | 13 |
Gross Unrealized Losses | 45,796 | 41,620 |
Estimated Fair Value | 351,204 | 357,521 |
Amortized Cost | 639,127 | 645,014 |
Gross Unrealized Gains | 2 | 13 |
Gross Unrealized Losses | 70,293 | 63,951 |
Estimated Fair Value | 568,836 | 581,076 |
U.S. Treasury and U.S. government agencies | ||
Available-for-sale | ||
Amortized Cost | 36,664 | 36,637 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1,174 | 988 |
Estimated Fair Value | 35,490 | 35,649 |
Held-to-maturity | ||
Amortized Cost | 245,839 | 245,805 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | 30,821 | 28,676 |
Estimated Fair Value | 215,018 | 217,131 |
Mortgage-backed U.S. government agencies | ||
Available-for-sale | ||
Amortized Cost | 165,402 | 169,184 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 18,637 | 16,501 |
Estimated Fair Value | 146,765 | 152,683 |
Held-to-maturity | ||
Amortized Cost | 42,376 | 43,818 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 5,869 | 5,523 |
Estimated Fair Value | 36,507 | 38,295 |
State and political subdivision obligations | ||
Available-for-sale | ||
Amortized Cost | 4,326 | 4,332 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 693 | 686 |
Estimated Fair Value | 3,633 | 3,646 |
Held-to-maturity | ||
Amortized Cost | 83,318 | 84,035 |
Gross Unrealized Gains | 2 | 11 |
Gross Unrealized Losses | 6,958 | 6,486 |
Estimated Fair Value | 76,362 | 77,560 |
Corporate debt securities | ||
Available-for-sale | ||
Amortized Cost | 35,737 | 35,733 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 3,993 | 4,156 |
Estimated Fair Value | 31,744 | 31,577 |
Held-to-maturity | ||
Amortized Cost | 25,465 | 25,470 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2,148 | 935 |
Estimated Fair Value | $ 23,317 | $ 24,535 |
Investment Securities - Schedul
Investment Securities - Schedule of Fair Value and Unrealized Loss on Debt Security Investments in a Continuous Unrealized Loss Position (Details) | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 0 | 2 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 0 | $ 4,425,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 116,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 138 | 136 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 217,632,000 | $ 219,130,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 24,497,000 | $ 22,215,000 |
Available-for-sale securities, Total: Number of Securities | security | 138 | 138 |
Available-for-sale securities, Total: Fair Value | $ 217,632,000 | $ 223,555,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 24,497,000 | $ 22,331,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 16 | 27 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 5,846,000 | $ 11,667,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 86,000 | $ 120,000 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 401 | 392 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 345,043,000 | $ 345,854,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 45,710,000 | $ 41,500,000 |
Held-to-maturity securities, Total: Number of Securities | security | 417 | 419 |
Held-to-maturity securities, Total: Fair Value | $ 350,889,000 | $ 357,521,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 45,796,000 | $ 41,620,000 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 16 | 29 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Fair Value | $ 5,846,000 | $ 16,092,000 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 86,000 | $ 236,000 |
Available-for-sale securities and Held-to-maturity securities,, 12 Months or More: Number of Securities | security | 539 | 528 |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Fair Value | $ 562,675,000 | $ 564,984,000 |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 70,207,000 | $ 63,715,000 |
Available-for-sale securities and Held-to-maturity securities, Total: Number of Securities | security | 555 | 557 |
Available-for-sale securities and Held-to-maturity securities, Total: Fair Value | $ 568,521,000 | $ 581,076,000 |
Available-for-sale securities and Held-to-maturity securities, Total: Unrealized Losses | $ 70,293,000 | $ 63,951,000 |
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 | 0 | 0 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 0 | $ 0 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 0 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 19 | 19 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 35,490,000 | $ 35,649,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 1,174,000 | $ 988,000 |
Available-for-sale securities, Total: Number of Securities | security | 19 | 19 |
Available-for-sale securities, Total: Fair Value | $ 35,490,000 | $ 35,649,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 1,174,000 | $ 988,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 0 | 1 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 0 | $ 2,002,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 0 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 145 | 144 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 215,018,000 | $ 215,129,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 30,821,000 | $ 28,676,000 |
Held-to-maturity securities, Total: Number of Securities | security | 145 | 145 |
Held-to-maturity securities, Total: Fair Value | $ 215,018,000 | $ 217,131,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 30,821,000 | $ 28,676,000 |
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 | 0 | 1 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 0 | $ 4,015,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 26,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 93 | 92 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 146,765,000 | $ 148,668,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 18,637,000 | $ 16,475,000 |
Available-for-sale securities, Total: Number of Securities | security | 93 | 93 |
Available-for-sale securities, Total: Fair Value | $ 146,765,000 | $ 152,683,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 18,637,000 | $ 16,501,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 0 | 0 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 0 | $ 0 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 0 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 64 | 64 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 36,507,000 | $ 38,295,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 5,869,000 | $ 5,523,000 |
Held-to-maturity securities, Total: Number of Securities | security | 64 | 64 |
Held-to-maturity securities, Total: Fair Value | $ 36,507,000 | $ 38,295,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 5,869,000 | $ 5,523,000 |
State and political subdivision obligations | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 0 | 0 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 0 | $ 0 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 0 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 8 | 8 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 3,633,000 | $ 3,646,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 693,000 | $ 686,000 |
Available-for-sale securities, Total: Number of Securities | security | 8 | 8 |
Available-for-sale securities, Total: Fair Value | $ 3,633,000 | $ 3,646,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 693,000 | $ 686,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 16 | 25 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 5,846,000 | $ 8,729,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 86,000 | $ 63,000 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 177 | 170 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 70,201,000 | $ 68,831,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 6,872,000 | $ 6,423,000 |
Held-to-maturity securities, Total: Number of Securities | security | 193 | 195 |
Held-to-maturity securities, Total: Fair Value | $ 76,047,000 | $ 77,560,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 6,958,000 | $ 6,486,000 |
Corporate debt securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 0 | 1 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 0 | $ 410,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 90,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 18 | 17 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 31,744,000 | $ 31,167,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 3,993,000 | $ 4,066,000 |
Available-for-sale securities, Total: Number of Securities | security | 18 | 18 |
Available-for-sale securities, Total: Fair Value | $ 31,744,000 | $ 31,577,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 3,993,000 | $ 4,156,000 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 0 | 1 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 0 | $ 936,000 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 0 | $ 57,000 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 15 | 14 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 23,317,000 | $ 23,599,000 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 2,148,000 | $ 878,000 |
Held-to-maturity securities, Total: Number of Securities | security | 15 | 15 |
Held-to-maturity securities, Total: Fair Value | $ 23,317,000 | $ 24,535,000 |
Held-to-maturity securities, Total: Unrealized Losses | $ 2,148,000 | $ 935,000 |
Investment Securities - Investm
Investment Securities - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in 1 year or less | $ 12,496 | |
Due after 1 year but within 5 years | 34,425 | |
Due after 5 years but within 10 years | 27,475 | |
Due after 10 years | 2,331 | |
Available-for-sale securities, amortized cost basis, Total | 76,727 | |
Amortized Cost | 242,129 | $ 245,886 |
Fair Value | ||
Due in 1 year or less | 12,380 | |
Due after 1 year but within 5 years | 32,819 | |
Due after 5 years but within 10 years | 23,743 | |
Due after 10 years | 1,925 | |
Available-for-sale securities, fair value, Total | 70,867 | |
Available-for-sale securities, fair value | 217,632 | 223,555 |
Amortized Cost | ||
Due in 1 year or less | 13,047 | |
Due after 1 year but within 5 years | 125,456 | |
Due after 5 years but within 10 years | 195,525 | |
Due after 10 years | 20,594 | |
Held-to-maturity securities, amortized cost | 354,622 | |
Amortized Cost | 396,998 | 399,128 |
Fair Value | ||
Due in 1 year or less | 12,906 | |
Due after 1 year but within 5 years | 116,182 | |
Due after 5 years but within 10 years | 168,141 | |
Due after 10 years | 17,468 | |
Held-to-maturity securities, fair value | 314,697 | |
Held-to-maturity, Fair Value | 351,204 | $ 357,521 |
Mortgage-backed securities | ||
Amortized Cost | ||
Mortgage-backed securities | 165,402 | |
Fair Value | ||
Mortgage-backed securities | 146,765 | |
Amortized Cost | ||
Mortgage-backed securities | 42,376 | |
Fair Value | ||
Mortgage-backed securities | $ 36,507 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loans - Classes Of The Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | $ 4,317,449 | $ 4,252,792 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 2,344,318 | 2,301,206 |
Commercial real estate | CRE Nonowner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 1,174,774 | 1,149,553 |
Commercial real estate | CRE Owner Occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 622,574 | 629,904 |
Commercial real estate | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 334,952 | 309,059 |
Commercial real estate | Farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 212,018 | 212,690 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 671,395 | 675,079 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 487,289 | 455,467 |
Construction | Residential Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 103,861 | 92,843 |
Construction | Other Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 383,428 | 362,624 |
Residential mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 807,312 | 813,874 |
Residential mortgage | 1-4 Family 1st Lien | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 334,557 | 339,142 |
Residential mortgage | 1-4 Family Rental | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | 340,052 | 341,937 |
Residential mortgage | HELOC and Junior Liens | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, net of unearned interest | $ 132,703 | $ 132,795 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Loans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||
Net deferred loan fees | $ 4,000 | $ 4,200 | |
Accrued interest | 23,200 | ||
Interest income on nonaccrual loans | 159 | $ 182 | |
Foreclosure proceedings in process | $ 892 | $ 121 | |
Weighted average term increase from modification | 2 years | ||
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other assets |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Loans - Loan Portfolio Summarized By The Past Due Status (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | $ 4,317,449 | $ 4,252,792 |
Loans Receivable > 90 Days and Accruing | 25 | 0 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 16,242 | 20,995 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 10,993 | 10,400 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 474 | 1,274 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 4,775 | 9,321 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 4,301,207 | 4,231,797 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,344,318 | 2,301,206 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Commercial real estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 10,425 | 8,729 |
Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 9,647 | 5,073 |
Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 682 |
Commercial real estate | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 778 | 2,974 |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,333,893 | 2,292,477 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 671,395 | 675,079 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Commercial and industrial | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,858 | 1,932 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 638 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 87 | 24 |
Commercial and industrial | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,771 | 1,270 |
Commercial and industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 669,537 | 673,147 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 487,289 | 455,467 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Construction | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 2,829 |
Construction | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 0 |
Construction | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 270 |
Construction | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 2,559 |
Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 487,289 | 452,638 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 807,312 | 813,874 |
Loans Receivable > 90 Days and Accruing | 0 | 0 |
Residential mortgage | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 3,916 | 7,433 |
Residential mortgage | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 1,328 | 4,648 |
Residential mortgage | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 387 | 267 |
Residential mortgage | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 2,201 | 2,518 |
Residential mortgage | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 803,396 | 806,441 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 7,135 | 7,166 |
Loans Receivable > 90 Days and Accruing | 25 | 0 |
Consumer | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 43 | 72 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 18 | 41 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 0 | 31 |
Consumer | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | 25 | 0 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, net of unearned interest | $ 7,092 | $ 7,094 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Loans - Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | $ 1,692 | $ 1,678 |
Financing receivable, no allowance | 8,697 | 12,538 |
Financing receivable, recorded investment, nonaccrual status | 10,389 | 14,216 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 449 | 454 |
Financing receivable, no allowance | 4,139 | 6,133 |
Financing receivable, recorded investment, nonaccrual status | 4,588 | 6,587 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 1,202 | 1,222 |
Financing receivable, no allowance | 1,156 | 64 |
Financing receivable, recorded investment, nonaccrual status | 2,358 | 1,286 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 0 | 0 |
Financing receivable, no allowance | 0 | 2,559 |
Financing receivable, recorded investment, nonaccrual status | 0 | 2,559 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 41 | 2 |
Financing receivable, no allowance | 3,402 | 3,782 |
Financing receivable, recorded investment, nonaccrual status | 3,443 | 3,784 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, with allowance | 0 | 0 |
Financing receivable, no allowance | 0 | 0 |
Financing receivable, recorded investment, nonaccrual status | $ 0 | $ 0 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Loans - Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | $ 123,799 | $ 745,264 | |
2023 | 749,354 | 1,004,557 | |
2022 | 1,004,093 | 625,463 | |
2021 | 602,650 | 446,798 | |
2020 | 436,417 | 273,438 | |
Prior | 1,049,198 | 809,335 | |
Revolving Loans Amortized Cost Basis | 351,938 | 347,937 | |
Loans, net of unearned interest | 4,317,449 | 4,252,792 | |
Gross charge offs | |||
Total | (50) | $ (150) | |
Current period recoveries | |||
Total | 6 | 37 | |
Performing Financial Instruments | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 27,062 | 160,995 | |
2023 | 147,004 | 153,957 | |
2022 | 149,585 | 112,259 | |
2021 | 109,827 | 90,655 | |
2020 | 87,495 | 28,086 | |
Prior | 198,049 | 179,001 | |
Revolving Loans Amortized Cost Basis | 87,275 | 90,526 | |
Loans, net of unearned interest | 806,297 | 815,479 | |
Nonperforming Financial Instruments | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 0 | |
2023 | 178 | 0 | |
2022 | 0 | 93 | |
2021 | 79 | 1,470 | |
2020 | 1,666 | 0 | |
Prior | 6,129 | 3,998 | |
Revolving Loans Amortized Cost Basis | 98 | 0 | |
Loans, net of unearned interest | 8,150 | 5,561 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 96,737 | 584,075 | |
2023 | 601,905 | 844,729 | |
2022 | 851,023 | 510,017 | |
2021 | 491,665 | 350,064 | |
2020 | 342,299 | 238,887 | |
Prior | 809,082 | 592,074 | |
Revolving Loans Amortized Cost Basis | 261,541 | 250,237 | |
Loans, net of unearned interest | 3,454,252 | 3,370,083 | |
Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 194 | |
2023 | 267 | 89 | |
2022 | 495 | 2,224 | |
2021 | 282 | 1,447 | |
2020 | 1,811 | 6,236 | |
Prior | 18,687 | 12,682 | |
Revolving Loans Amortized Cost Basis | 2,463 | 4,577 | |
Loans, net of unearned interest | 24,005 | 27,449 | |
Substandard or lower | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 0 | |
2023 | 0 | 5,782 | |
2022 | 2,990 | 870 | |
2021 | 797 | 3,162 | |
2020 | 3,146 | 229 | |
Prior | 17,251 | 21,580 | |
Revolving Loans Amortized Cost Basis | 561 | 2,597 | |
Loans, net of unearned interest | 24,745 | 34,220 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 49,466 | 271,849 | |
2023 | 290,158 | 562,010 | |
2022 | 571,424 | 387,119 | |
2021 | 372,845 | 300,908 | |
2020 | 296,826 | 184,672 | |
Prior | 719,837 | 556,153 | |
Revolving Loans Amortized Cost Basis | 43,762 | 38,495 | |
Loans, net of unearned interest | 2,344,318 | 2,301,206 | |
Gross charge offs | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | (16) | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Total | (16) | ||
Net charge offs | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | (16) | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Total | (16) | ||
Commercial real estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 49,466 | 271,655 | |
2023 | 289,970 | 556,801 | |
2022 | 568,000 | 386,911 | |
2021 | 372,639 | 297,746 | |
2020 | 293,680 | 178,434 | |
Prior | 688,117 | 528,326 | |
Revolving Loans Amortized Cost Basis | 43,525 | 38,261 | |
Loans, net of unearned interest | 2,305,397 | 2,258,134 | |
Commercial real estate | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 194 | |
2023 | 188 | 0 | |
2022 | 434 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 6,009 | |
Prior | 16,407 | 10,482 | |
Revolving Loans Amortized Cost Basis | 191 | 186 | |
Loans, net of unearned interest | 17,220 | 16,871 | |
Commercial real estate | Substandard or lower | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 0 | |
2023 | 0 | 5,209 | |
2022 | 2,990 | 208 | |
2021 | 206 | 3,162 | |
2020 | 3,146 | 229 | |
Prior | 15,313 | 17,345 | |
Revolving Loans Amortized Cost Basis | 46 | 48 | |
Loans, net of unearned interest | 21,701 | 26,201 | |
Commercial and industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 33,909 | 158,824 | |
2023 | 147,311 | 106,803 | |
2022 | 97,374 | 71,334 | |
2021 | 63,424 | 29,961 | |
2020 | 28,200 | 50,433 | |
Prior | 109,159 | 62,070 | |
Revolving Loans Amortized Cost Basis | 192,018 | 195,654 | |
Loans, net of unearned interest | 671,395 | 675,079 | |
Gross charge offs | |||
2024 | 0 | ||
2023 | (100) | ||
2022 | 0 | ||
2021 | (111) | ||
2020 | 0 | ||
Prior | (27) | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Total | 0 | (111) | (238) |
Current period recoveries | |||
Total | 0 | 0 | |
Net charge offs | |||
2024 | 0 | ||
2023 | (100) | ||
2022 | 0 | ||
2021 | (111) | ||
2020 | 0 | ||
Prior | (27) | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Total | (238) | ||
Commercial and industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 33,909 | 158,824 | |
2023 | 147,232 | 106,714 | |
2022 | 97,313 | 68,448 | |
2021 | 62,551 | 29,961 | |
2020 | 28,200 | 50,206 | |
Prior | 104,941 | 57,892 | |
Revolving Loans Amortized Cost Basis | 189,231 | 188,714 | |
Loans, net of unearned interest | 663,377 | 660,759 | |
Commercial and industrial | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 0 | |
2023 | 79 | 89 | |
2022 | 61 | 2,224 | |
2021 | 282 | 0 | |
2020 | 0 | 227 | |
Prior | 2,280 | 2,200 | |
Revolving Loans Amortized Cost Basis | 2,272 | 4,391 | |
Loans, net of unearned interest | 4,974 | 9,131 | |
Commercial and industrial | Substandard or lower | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 662 | |
2021 | 591 | 0 | |
2020 | 0 | 0 | |
Prior | 1,938 | 1,978 | |
Revolving Loans Amortized Cost Basis | 515 | 2,549 | |
Loans, net of unearned interest | 3,044 | 5,189 | |
Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 13,362 | 153,596 | |
2023 | 164,703 | 181,787 | |
2022 | 185,710 | 54,658 | |
2021 | 56,475 | 23,804 | |
2020 | 22,230 | 10,247 | |
Prior | 16,024 | 8,113 | |
Revolving Loans Amortized Cost Basis | 28,785 | 23,262 | |
Loans, net of unearned interest | 487,289 | 455,467 | |
Construction | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 13,362 | 153,596 | |
2023 | 164,703 | 181,214 | |
2022 | 185,710 | 54,658 | |
2021 | 56,475 | 22,357 | |
2020 | 20,419 | 10,247 | |
Prior | 16,024 | 5,856 | |
Revolving Loans Amortized Cost Basis | 28,785 | 23,262 | |
Loans, net of unearned interest | 485,478 | 451,190 | |
Construction | Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 1,447 | |
2020 | 1,811 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Loans, net of unearned interest | 1,811 | 1,447 | |
Construction | Substandard or lower | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 0 | |
2023 | 0 | 573 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 2,257 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Loans, net of unearned interest | 0 | 2,830 | |
Residential mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 25,512 | 158,634 | |
2023 | 145,931 | 153,203 | |
2022 | 148,963 | 111,703 | |
2021 | 109,315 | 91,852 | |
2020 | 88,940 | 27,863 | |
Prior | 203,897 | 182,896 | |
Revolving Loans Amortized Cost Basis | 84,754 | 87,723 | |
Loans, net of unearned interest | 807,312 | 813,874 | |
Gross charge offs | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | (21) | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | (7) | (13) | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Total | (28) | (13) | |
Current period recoveries | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 38 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Total | 38 | ||
Net charge offs | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | (21) | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | (7) | 25 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Total | (28) | 25 | |
Residential mortgage | Performing Financial Instruments | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 25,512 | 158,634 | |
2023 | 145,753 | 153,203 | |
2022 | 148,963 | 111,610 | |
2021 | 109,236 | 90,382 | |
2020 | 87,274 | 27,863 | |
Prior | 197,768 | 178,898 | |
Revolving Loans Amortized Cost Basis | 84,656 | 87,723 | |
Loans, net of unearned interest | 799,162 | 808,313 | |
Residential mortgage | Nonperforming Financial Instruments | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | 0 | |
2023 | 178 | 0 | |
2022 | 0 | 93 | |
2021 | 79 | 1,470 | |
2020 | 1,666 | 0 | |
Prior | 6,129 | 3,998 | |
Revolving Loans Amortized Cost Basis | 98 | 0 | |
Loans, net of unearned interest | 8,150 | 5,561 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 1,550 | 2,361 | |
2023 | 1,251 | 754 | |
2022 | 622 | 649 | |
2021 | 591 | 273 | |
2020 | 221 | 223 | |
Prior | 281 | 103 | |
Revolving Loans Amortized Cost Basis | 2,619 | 2,803 | |
Loans, net of unearned interest | 7,135 | 7,166 | |
Gross charge offs | |||
2024 | (16) | (86) | |
2023 | 0 | 0 | |
2022 | (2) | (10) | |
2021 | 0 | (9) | |
2020 | 0 | 0 | |
Prior | (4) | (30) | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Total | (22) | (19) | (135) |
Current period recoveries | |||
2024 | 5 | 26 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 1 | |
2020 | 0 | 0 | |
Prior | 1 | 5 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Total | 6 | $ 7 | 32 |
Net charge offs | |||
2024 | (11) | (60) | |
2023 | 0 | 0 | |
2022 | (2) | (10) | |
2021 | 0 | (8) | |
2020 | 0 | 0 | |
Prior | (3) | (25) | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Total | (16) | (103) | |
Consumer | Performing Financial Instruments | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 1,550 | 2,361 | |
2023 | 1,251 | 754 | |
2022 | 622 | 649 | |
2021 | 591 | 273 | |
2020 | 221 | 223 | |
Prior | 281 | 103 | |
Revolving Loans Amortized Cost Basis | 2,619 | 2,803 | |
Loans, net of unearned interest | 7,135 | $ 7,166 | |
Consumer | Nonperforming Financial Instruments | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Loans, net of unearned interest | $ 0 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Loans - ACL Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
May 19, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | $ 34,187 | $ 18,957 | $ 18,957 | |
Charge offs | (50) | (150) | ||
Recoveries | 6 | 37 | ||
Net loans (charged off) recovered | (44) | (113) | ||
Provision for credit losses | (619) | 490 | ||
Allowance for loan losses, ending balance | 33,524 | 31,265 | 34,187 | |
Brunswick Bancorp Acquisition | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
PCD Loans | $ 336 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 11,931 | 11,931 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Charge offs | (16) | |||
Commercial real estate | CRE Nonowner Occupied | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 10,267 | 8,284 | 8,284 | |
Charge offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | 0 | 0 | ||
Provision for credit losses | 150 | (368) | ||
Allowance for loan losses, ending balance | 10,417 | 8,175 | 10,267 | |
Commercial real estate | CRE Nonowner Occupied | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 259 | 259 | ||
Commercial real estate | CRE Owner Occupied | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 5,646 | 2,916 | 2,916 | |
Charge offs | 0 | (16) | ||
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | 0 | (16) | ||
Provision for credit losses | (44) | 88 | ||
Allowance for loan losses, ending balance | 5,602 | 3,079 | 5,646 | |
Commercial real estate | CRE Owner Occupied | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 91 | 91 | ||
Commercial real estate | Multifamily | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 2,202 | 1,111 | 1,111 | |
Charge offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | 0 | 0 | ||
Provision for credit losses | 168 | 13 | ||
Allowance for loan losses, ending balance | 2,370 | 1,159 | 2,202 | |
Commercial real estate | Multifamily | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 35 | 35 | ||
Commercial real estate | Farmland | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 2,064 | 831 | 831 | |
Charge offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | 0 | 0 | ||
Provision for credit losses | (62) | 42 | ||
Allowance for loan losses, ending balance | 2,002 | 899 | 2,064 | |
Commercial real estate | Farmland | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 26 | 26 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 7,131 | 4,593 | 4,593 | |
Charge offs | 0 | (111) | (238) | |
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | 0 | (111) | ||
Provision for credit losses | (631) | 186 | ||
Allowance for loan losses, ending balance | 6,500 | 11,269 | 7,131 | |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 6,601 | 6,601 | ||
Construction | Residential Construction | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 1,256 | 0 | 0 | |
Charge offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | 0 | 0 | ||
Provision for credit losses | (80) | 153 | ||
Allowance for loan losses, ending balance | 1,176 | 1,423 | 1,256 | |
Construction | Residential Construction | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 1,270 | 1,270 | ||
Construction | Other Construction | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 2,146 | 0 | 0 | |
Charge offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | 0 | 0 | ||
Provision for credit losses | 25 | 277 | ||
Allowance for loan losses, ending balance | 2,171 | 2,208 | 2,146 | |
Construction | Other Construction | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 1,931 | 1,931 | ||
Residential mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Charge offs | (28) | (13) | ||
Recoveries | 38 | |||
Residential mortgage | 1-4 Family 1st Lien | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 1,207 | 370 | 370 | |
Charge offs | (7) | (4) | ||
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | (7) | (4) | ||
Provision for credit losses | 71 | (317) | ||
Allowance for loan losses, ending balance | 1,271 | 1,356 | 1,207 | |
Residential mortgage | 1-4 Family 1st Lien | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 1,307 | 1,307 | ||
Residential mortgage | 1-4 Family Rental | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 1,859 | 288 | 288 | |
Charge offs | (21) | 0 | ||
Recoveries | 0 | 30 | ||
Net loans (charged off) recovered | (21) | 30 | ||
Provision for credit losses | (299) | 17 | ||
Allowance for loan losses, ending balance | 1,539 | 1,066 | 1,859 | |
Residential mortgage | 1-4 Family Rental | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 731 | 731 | ||
Residential mortgage | HELOC and Junior Liens | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 389 | 661 | 661 | |
Charge offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Net loans (charged off) recovered | 0 | 0 | ||
Provision for credit losses | 68 | 21 | ||
Allowance for loan losses, ending balance | 457 | 452 | 389 | |
Residential mortgage | HELOC and Junior Liens | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | (230) | (230) | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 20 | 29 | 29 | |
Charge offs | (22) | (19) | (135) | |
Recoveries | 6 | 7 | 32 | |
Net loans (charged off) recovered | (16) | (12) | ||
Provision for credit losses | 15 | 8 | ||
Allowance for loan losses, ending balance | $ 19 | 179 | 20 | |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | 154 | 154 | ||
Unallocated Financing Receivables | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | (126) | (126) | ||
Charge offs | 0 | |||
Recoveries | 0 | |||
Net loans (charged off) recovered | 0 | |||
Provision for credit losses | 370 | |||
Allowance for loan losses, ending balance | 0 | |||
Unallocated Financing Receivables | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, beginning balance | $ (244) | $ (244) |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Loans - ACL for Loans and Amortized Cost Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | $ 32,406 | $ 33,100 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 1,118 | 1,087 | ||
Allowance for loan losses | 33,524 | 34,187 | $ 31,265 | $ 18,957 |
Loans receivable: ending balance, collectively evaluated for impairment | 4,307,059 | 4,238,306 | ||
Loans receivable: ending balance, individually evaluated for impairment | 10,390 | 14,486 | ||
Loans, net of unearned interest | 4,317,449 | 4,252,792 | ||
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, net of unearned interest | 2,344,318 | 2,301,206 | ||
Commercial real estate | CRE Nonowner Occupied | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 10,061 | 9,906 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 356 | 361 | ||
Allowance for loan losses | 10,417 | 10,267 | 8,175 | 8,284 |
Loans receivable: ending balance, collectively evaluated for impairment | 1,172,396 | 1,145,048 | ||
Loans receivable: ending balance, individually evaluated for impairment | 2,378 | 4,505 | ||
Loans, net of unearned interest | 1,174,774 | 1,149,553 | ||
Commercial real estate | CRE Owner Occupied | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 5,602 | 5,646 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses | 5,602 | 5,646 | 3,079 | 2,916 |
Loans receivable: ending balance, collectively evaluated for impairment | 620,534 | 627,995 | ||
Loans receivable: ending balance, individually evaluated for impairment | 2,040 | 1,909 | ||
Loans, net of unearned interest | 622,574 | 629,904 | ||
Commercial real estate | Multifamily | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 2,351 | 2,190 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 19 | 12 | ||
Allowance for loan losses | 2,370 | 2,202 | 1,159 | 1,111 |
Loans receivable: ending balance, collectively evaluated for impairment | 334,781 | 308,886 | ||
Loans receivable: ending balance, individually evaluated for impairment | 171 | 173 | ||
Loans, net of unearned interest | 334,952 | 309,059 | ||
Commercial real estate | Farmland | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 2,002 | 2,064 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses | 2,002 | 2,064 | 899 | 831 |
Loans receivable: ending balance, collectively evaluated for impairment | 212,018 | 212,690 | ||
Loans receivable: ending balance, individually evaluated for impairment | 0 | 0 | ||
Loans, net of unearned interest | 212,018 | 212,690 | ||
Commercial and industrial | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 5,761 | 6,419 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 739 | 712 | ||
Allowance for loan losses | 6,500 | 7,131 | ||
Loans receivable: ending balance, collectively evaluated for impairment | 669,037 | 673,793 | ||
Loans receivable: ending balance, individually evaluated for impairment | 2,358 | 1,286 | ||
Loans, net of unearned interest | 671,395 | 675,079 | ||
Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, net of unearned interest | 487,289 | 455,467 | ||
Construction | Residential Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 1,176 | 1,256 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses | 1,176 | 1,256 | 1,423 | 0 |
Loans receivable: ending balance, collectively evaluated for impairment | 103,861 | 92,270 | ||
Loans receivable: ending balance, individually evaluated for impairment | 0 | 573 | ||
Loans, net of unearned interest | 103,861 | 92,843 | ||
Construction | Other Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 2,171 | 2,146 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses | 2,171 | 2,146 | 2,208 | 0 |
Loans receivable: ending balance, collectively evaluated for impairment | 383,428 | 360,368 | ||
Loans receivable: ending balance, individually evaluated for impairment | 0 | 2,256 | ||
Loans, net of unearned interest | 383,428 | 362,624 | ||
Residential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans, net of unearned interest | 807,312 | 813,874 | ||
Residential mortgage | 1-4 Family 1st Lien | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 1,271 | 1,207 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses | 1,271 | 1,207 | 1,356 | 370 |
Loans receivable: ending balance, collectively evaluated for impairment | 332,822 | 337,267 | ||
Loans receivable: ending balance, individually evaluated for impairment | 1,735 | 1,875 | ||
Loans, net of unearned interest | 334,557 | 339,142 | ||
Residential mortgage | 1-4 Family Rental | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 1,535 | 1,857 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 4 | 2 | ||
Allowance for loan losses | 1,539 | 1,859 | 1,066 | 288 |
Loans receivable: ending balance, collectively evaluated for impairment | 339,696 | 341,236 | ||
Loans receivable: ending balance, individually evaluated for impairment | 356 | 701 | ||
Loans, net of unearned interest | 340,052 | 341,937 | ||
Residential mortgage | HELOC and Junior Liens | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 457 | 389 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses | 457 | 389 | 452 | 661 |
Loans receivable: ending balance, collectively evaluated for impairment | 131,351 | 131,587 | ||
Loans receivable: ending balance, individually evaluated for impairment | 1,352 | 1,208 | ||
Loans, net of unearned interest | 132,703 | 132,795 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses | 19 | 20 | $ 179 | $ 29 |
Loans, net of unearned interest | 7,135 | 7,166 | ||
Consumer | Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses: ending balance, collectively evaluated for impairment | 19 | 20 | ||
Allowance for loan losses: ending balance, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses | 19 | 20 | ||
Loans receivable: ending balance, collectively evaluated for impairment | 7,135 | 7,166 | ||
Loans receivable: ending balance, individually evaluated for impairment | 0 | 0 | ||
Loans, net of unearned interest | $ 7,135 | $ 7,166 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | $ 92 | $ 231 | |
% of Total Class of Financing Receivable | 0.01% | 0.04% | |
Interest Only | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | $ 0 | 51 | |
Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | 0 | 0 | |
Combination: Interest Only and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | 92 | $ 180 | |
Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | $ 92 | ||
% of Total Class of Financing Receivable | 0.01% | ||
Residential mortgage | Interest Only | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | $ 0 | ||
Residential mortgage | Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | 0 | ||
Residential mortgage | Combination: Interest Only and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | $ 92 | ||
Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | $ 231 | ||
% of Total Class of Financing Receivable | 0.04% | ||
Commercial real estate | Interest Only | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | $ 51 | ||
Commercial real estate | Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | 0 | ||
Commercial real estate | Combination: Interest Only and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Financing receivable, excluding accrued interest, modified period | $ 180 |
Deposits - By Type (Details)
Deposits - By Type (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Interest-Bearing Deposit Liabilities, Domestic, by Component [Abstract] | ||
Noninterest-bearing demand deposits | $ 807,861 | $ 801,312 |
Interest-bearing demand deposits | 923,120 | 947,372 |
Money market | 874,833 | 850,674 |
Savings | 284,893 | 288,404 |
Total demand and savings | 2,890,707 | 2,887,762 |
Time | 1,488,398 | 1,458,450 |
Total Deposits | 4,379,105 | 4,346,212 |
Overdrafts | $ 558 | $ 315 |
% of Total Deposits | ||
Noninterest-bearing demand deposits | 18.40% | 18.40% |
Interest-bearing demand deposits | 21.10% | 21.80% |
Money market | 20% | 19.60% |
Savings | 6.50% | 6.60% |
Total demand and savings | 66% | 66.40% |
Time | 34% | 33.60% |
Total deposits | 100% | 100% |
Overdrafts | 0.01% | 0.01% |
Deposits - Time Deposits By Mat
Deposits - Time Deposits By Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Deposit Liability [Line Items] | ||
Time | $ 1,488,398 | $ 1,458,450 |
Time Deposits Less Than250000 | ||
Deposit Liability [Line Items] | ||
Maturing in 2024 | 827,090 | |
Maturing in 2025 | 238,921 | |
Maturing in 2026 | 38,245 | |
Maturing in 2027 | 17,642 | |
Maturing in 2028 | 11,241 | |
Maturing thereafter | 3,059 | |
Time | 1,136,198 | |
Time Deposits250000 Or More | ||
Deposit Liability [Line Items] | ||
Maturing in 2024 | 279,833 | |
Maturing in 2025 | 66,846 | |
Maturing in 2026 | 3,463 | |
Maturing in 2027 | 1,194 | |
Maturing in 2028 | 572 | |
Maturing thereafter | 292 | |
Time | $ 352,200 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Deposits [Abstract] | |||
Brokered certificates of deposits | $ 244.8 | $ 244.8 | |
CDAR deposits | $ 91.1 | $ 96.7 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Loan Level Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Interest Rate Swap with Customers | Commercial Loan | ||
Derivative [Line Items] | ||
Notional amount | $ 201,405 | $ 187,192 |
Weighted average remaining term (years) | 5 years 11 months 1 day | 6 years 2 months 26 days |
Receive fixed rate (weighted average) | 4.56% | 4.59% |
Pay variable rate (weighted average) | 7.48% | 7.50% |
Estimated fair value | $ 11,315 | $ 10,484 |
Interest Rate Swap with Counterparties | Commercial Loan | ||
Derivative [Line Items] | ||
Notional amount | $ 201,405 | $ 187,192 |
Weighted average remaining term (years) | 5 years 11 months 1 day | 6 years 2 months 26 days |
Receive fixed rate (weighted average) | 4.56% | 7.50% |
Pay variable rate (weighted average) | 7.48% | 4.59% |
Estimated fair value | $ 11,315 | $ 10,484 |
Interest Rate Swaps Used In Cash Flow Hedges | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Notional amount | $ 190,000 | $ 190,000 |
Weighted average remaining term (years) | 1 year 11 months 19 days | 2 years 2 months 19 days |
Receive fixed rate (weighted average) | 3.74% | 3.74% |
Pay variable rate (weighted average) | 4.07% | 4.07% |
Estimated fair value | $ 3,228 | $ 1,460 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Interest Rate Contract | |
Derivative [Line Items] | |
Cash flow hedge to be reclassified within 12 months | $ 2.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 542,350 | $ 512,099 |
OCI before reclassifications | (293) | 1,854 |
Amounts reclassified from AOCI | (17) | (12) |
Balance | 550,968 | 510,793 |
Unrealized Loss on Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (17,339) | (19,327) |
OCI before reclassifications | (1,711) | 1,977 |
Amounts reclassified from AOCI | 0 | 0 |
Balance | (19,050) | (17,350) |
Unrealized Holding Losses on Interest Rate Derivatives used in Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 820 | 0 |
OCI before reclassifications | 1,410 | (128) |
Amounts reclassified from AOCI | 0 | 0 |
Balance | 2,230 | (128) |
Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (118) | 111 |
OCI before reclassifications | 8 | 5 |
Amounts reclassified from AOCI | (17) | (12) |
Balance | $ (127) | $ 104 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | $ 217,632 | $ 223,555 |
Equity securities | 431 | 438 |
Loans held for sale | $ 4,581 | $ 3,855 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Derivative assets | $ 14,543 | $ 11,944 |
Total | 237,187 | 239,792 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Equity securities | 431 | 438 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Total | 431 | 438 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 217,632 | 223,555 |
Equity securities | 0 | 0 |
Loans held for sale | 4,581 | 3,855 |
Derivative assets | 14,543 | 11,944 |
Total | 236,756 | 239,354 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Total | 0 | 0 |
U.S. Treasury and U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 35,490 | 35,649 |
U.S. Treasury and U.S. government agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
U.S. Treasury and U.S. government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 35,490 | 35,649 |
U.S. Treasury and U.S. government agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Mortgage-backed U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 146,765 | 152,683 |
Mortgage-backed U.S. government agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, 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] | ||
AFS, at fair value | 146,765 | 152,683 |
Mortgage-backed U.S. government agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
State and political subdivision obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 3,633 | 3,646 |
State and political subdivision obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, 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] | ||
AFS, at fair value | 3,633 | 3,646 |
State and political subdivision obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 31,744 | 31,577 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | 31,744 | 31,577 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
AFS, at fair value | $ 0 | $ 0 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value Measurements, Nonrecurring (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Individually evaluated loans, net of ACL | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, nonrecurring | $ 9,272 | $ 13,399 |
Foreclosed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, nonrecurring | $ 5,110 | $ 293 |
Fair Value Measurement - Fair_2
Fair Value Measurement - Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial instruments - assets | ||
AFS, at fair value | $ 217,632 | $ 223,555 |
Estimated Fair Value | 351,204 | 357,521 |
Loans held for sale | 4,581 | 3,855 |
Derivative assets | 14,543 | 11,944 |
Level 1 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 68,085 | 96,763 |
AFS, at fair value | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Equity securities | 431 | 438 |
Loans held for sale | 0 | 0 |
Net loans | 0 | 0 |
Restricted investment in bank stocks | 17,446 | 16,768 |
Accrued interest receivable | 26,975 | 25,820 |
Derivative assets | 0 | 0 |
Financial instruments - liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 16,330 | 14,257 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 0 | 0 |
AFS, at fair value | 217,632 | 223,555 |
Estimated Fair Value | 351,204 | 357,521 |
Equity securities | 0 | 0 |
Loans held for sale | 4,581 | 3,855 |
Net loans | 0 | 0 |
Restricted investment in bank stocks | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 14,543 | 11,944 |
Financial instruments - liabilities | ||
Deposits | 4,368,088 | 4,337,723 |
Short-term borrowings | 271,849 | 241,532 |
Long-term debt | 20,768 | 55,081 |
Subordinated debt | 40,332 | 39,515 |
Accrued interest payable | 0 | 0 |
Derivative liabilities | 11,315 | 10,484 |
Level 3 | ||
Financial instruments - assets | ||
Cash and cash equivalents | 0 | 0 |
AFS, at fair value | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Net loans | 4,285,266 | 4,221,926 |
Restricted investment in bank stocks | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Financial instruments - liabilities | ||
Deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Derivative liabilities | 0 | 0 |
Carrying Amount | ||
Financial instruments - assets | ||
Cash and cash equivalents | 68,085 | 96,763 |
AFS, at fair value | 217,632 | 223,555 |
Estimated Fair Value | 396,998 | 399,128 |
Equity securities | 431 | 438 |
Loans held for sale | 4,581 | 3,855 |
Net loans | 4,283,925 | 4,218,605 |
Restricted investment in bank stocks | 17,446 | 16,768 |
Accrued interest receivable | 26,975 | 25,820 |
Derivative assets | 14,543 | 11,944 |
Financial instruments - liabilities | ||
Deposits | 4,379,105 | 4,346,212 |
Short-term borrowings | 271,849 | 241,532 |
Long-term debt | 20,768 | 55,806 |
Subordinated debt | 46,201 | 46,354 |
Accrued interest payable | 16,330 | 14,257 |
Derivative liabilities | 11,315 | 10,484 |
Estimated Fair Value | ||
Financial instruments - assets | ||
Cash and cash equivalents | 68,085 | 96,763 |
AFS, at fair value | 217,632 | 223,555 |
Estimated Fair Value | 351,204 | 357,521 |
Equity securities | 431 | 438 |
Loans held for sale | 4,581 | 3,855 |
Net loans | 4,285,266 | 4,221,926 |
Restricted investment in bank stocks | 17,446 | 16,768 |
Accrued interest receivable | 26,975 | 25,820 |
Derivative assets | 14,543 | 11,944 |
Financial instruments - liabilities | ||
Deposits | 4,368,088 | 4,337,723 |
Short-term borrowings | 271,849 | 241,532 |
Long-term debt | 20,768 | 55,081 |
Subordinated debt | 40,332 | 39,515 |
Accrued interest payable | 16,330 | 14,257 |
Derivative liabilities | $ 11,315 | $ 10,484 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments, Contingencies and Guarantees [Line Items] | |||
Off-balance-sheet credit exposure | $ 3,200 | $ 3,600 | |
Off-balance-sheet, liability, credit loss expense (reversal) | (318) | ||
Cumulative Effect, Period of Adoption, Adjustment | |||
Commitments, Contingencies and Guarantees [Line Items] | |||
Off-balance-sheet credit exposure | $ 3,100 | ||
Financial Standby Letters of Credit | |||
Commitments, Contingencies and Guarantees [Line Items] | |||
Commitments to extend credit | $ 61,400 | $ 62,200 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Short term borrowings | $ 271,849,000 | $ 241,532,000 |
Maturity of federal funds purchased from correspondent banks | one business day | |
Maximum borrowing capacity | $ 3,000,000,000 | |
Current borrowing available | 1,700,000,000 | |
Federal home loan bank, maximum amount available, net of deposits and advances | 2,100,000,000 | |
Letter of credit outstanding, amount | 142,900,000 | 153,500,000 |
Other Correspondent Banks | ||
Debt Instrument [Line Items] | ||
Line of credit facility, remaining borrowing capacity | 35,000,000 | |
Outstanding drawings | $ 0 | $ 0 |
Debt - Long-term Debt Outstandi
Debt - Long-term Debt Outstanding by Due Date (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total FHLB fixed rate instruments | $ 20,768 | $ 55,806 |
Lease obligations included in long-term debt | 3,173 | 3,197 |
Total long-term debt | 23,941 | 59,003 |
Due in January 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 0 | $ 10,000 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 1.10% | 1.10% |
Due in March 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 0 | $ 25,000 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 5.60% | 5.60% |
Due in February 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 20,000 | $ 20,000 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 4.51% | 4.51% |
Due in August 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 746 | $ 782 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 4.80% | 4.80% |
Due in February 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 22 | $ 24 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 6.71% | 6.71% |
Subordinated Debt and Trust P_2
Subordinated Debt and Trust Preferred Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Nov. 30, 2021 | Dec. 22, 2020 | Mar. 20, 2020 | Mar. 31, 2024 | Dec. 31, 2023 | |
Subordinated debt | $ 46,201 | $ 46,354 | |||
Subordinated Debt | Subordinated Notes Due December 2030 | |||||
Debt instrument, interest rate, effective percentage | 4.50% | ||||
Subordinated debt issuance | $ 12,200 | ||||
Principal amount sold, percent | 100% | ||||
Interest rate period | 5 years | ||||
Debt instrument, interest rate, effective percentage | 4.50% | ||||
Redemption price, percentage | 100% | ||||
Subordinated Debt | Subordinated Notes Due December 2030 | Related Party | |||||
Subordinated debt | 750 | 750 | |||
Subordinated Debt | Subordinated Notes Due March 2030 | |||||
Debt instrument, interest rate, effective percentage | 4% | ||||
Subordinated debt issuance | $ 6,900 | $ 15,000 | 8,100 | ||
Interest rate period | 5 years | ||||
Debt instrument, interest rate, effective percentage | 4.25% | ||||
Redemption price, percentage | 100% | ||||
Interest payment terms, semi-annually | 5 years | ||||
Subordinated Debt | Subordinated Notes Due March 2030 | Related Party | |||||
Subordinated debt | $ 1,700 | $ 1,700 | |||
Riverview Acquisition | Subordinated Debt | |||||
Subordinate debt assumed | 25,000 | ||||
Subordinated debt fair value premium | $ 2,300 | ||||
Debt instrument, interest rate, effective percentage | 5.75% | ||||
Debt instrument, basis spread on variable rate | 5.63% |
Common Stock and Earnings Per_3
Common Stock and Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 19, 2020 | |
Class of Stock [Line Items] | |||
Number of antidilutive shares | 0 | 0 | |
Employee | Minimum | |||
Class of Stock [Line Items] | |||
Restricted shares, vesting period | 1 year | ||
Employee | Maximum | |||
Class of Stock [Line Items] | |||
Restricted shares, vesting period | 4 years | ||
Director | |||
Class of Stock [Line Items] | |||
Restricted shares, vesting period | 12 months | ||
Dividend Reinvestment Plan | |||
Class of Stock [Line Items] | |||
Shares authorized per plan (in shares) | 300,000,000 | ||
2023 Stock Incentive Plan | |||
Class of Stock [Line Items] | |||
Aggregate shares granted (in shares) | 350,000 | ||
Shares granted (in shares) | 217,514 | ||
Granted shares unvested (in shares) | 83,107 | ||
Allocated share-based compensation expense | $ 302 | $ 249 | |
Treasury Stock Repurchase Program | |||
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount (in shares) | $ 15,000 | ||
Stock repurchased during period (in shares) | 15,500 | ||
Shares acquired, average cost per share (in dollars per share) | $ 20.81 | ||
Stock repurchased during period (in shares) | 440,722 | ||
Stock repurchased at average price per share (in dollars per share) | $ 22.78 | ||
Stock repurchase program, remaining available repurchase amount | $ 5,000 |
Common Stock and Earnings Per_4
Common Stock and Earnings Per Share - Schedule of Computing Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | ||
Net income | $ 12,133 | $ 11,227 |
Weighted average common shares outstanding (basic) (in shares) | 16,567,902 | 15,886,186 |
Effect of dilutive unvested restricted stock grants (in shares) | 45,471 | 44,935 |
Weighted average common shares outstanding (diluted) (in shares) | 16,613,373 | 15,931,121 |
Basic earnings per common share (In dollars per share) | $ 0.73 | $ 0.71 |
Diluted earnings per common share (in dollars per share) | $ 0.73 | $ 0.70 |