Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 15, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 | |
Trading Symbol | MPB | |
Entity Registrant Name | MID PENN BANCORP INC | |
Entity Central Index Key | 879,635 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,234,280 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 22,613 | $ 13,493 |
Interest-bearing balances with other financial institutions | 1,943 | 2,003 |
Federal funds sold | 8,551 | 30,477 |
Total cash and cash equivalents | 33,107 | 45,973 |
Investment securities available for sale, at fair value | 119,525 | 133,625 |
Investment securities held to maturity, at amortized cost (fair value $49,507 and $0) | 49,654 | |
Loans held for sale | 2,035 | 1,959 |
Loans and leases, net of unearned interest | 834,220 | 813,924 |
Less: Allowance for loan and lease losses | (7,620) | (7,183) |
Net loans and leases | 826,600 | 806,741 |
Bank premises and equipment, net | 11,148 | 11,074 |
Bank premises and equipment held for sale | 1,894 | |
Cash surrender value of life insurance | 12,845 | 12,780 |
Restricted investment in bank stocks | 2,475 | 2,443 |
Foreclosed assets held for sale | 127 | 224 |
Accrued interest receivable | 3,901 | 3,928 |
Deferred income taxes | 4,134 | 4,286 |
Goodwill | 3,918 | 3,918 |
Core deposit and other intangibles, net | 510 | 539 |
Other assets | 2,959 | 3,215 |
Total Assets | 1,072,938 | 1,032,599 |
LIABILITIES & SHAREHOLDERS’ EQUITY | ||
Deposits: Noninterest-bearing demand | 136,847 | 122,811 |
Deposits: Interest-bearing demand | 331,720 | 317,533 |
Deposits: Money Market | 255,259 | 252,271 |
Deposits: Savings | 63,129 | 60,163 |
Deposits: Time | 184,932 | 182,595 |
Total Deposits | 971,887 | 935,373 |
Long-term debt | 13,524 | 13,581 |
Subordinated debt | 7,416 | 7,414 |
Accrued interest payable | 621 | 515 |
Other liabilities | 7,163 | 5,249 |
Total Liabilities | 1,000,611 | 962,132 |
Shareholders' Equity: | ||
Common stock, par value $1.00; authorized 10,000,000 shares; 4,232,166 and 4,226,717 shares issued and outstanding at September 30, 2016, and at December 31, 2015, respectively | 4,234 | 4,233 |
Additional paid-in capital | 40,733 | 40,688 |
Retained earnings | 29,842 | 28,399 |
Accumulated other comprehensive loss | (2,482) | (2,853) |
Total Shareholders’ Equity | 72,327 | 70,467 |
Total Liabilities and Shareholders' Equity | $ 1,072,938 | $ 1,032,599 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Investment securities held-to-maturity, fair value | $ 49,507 | $ 0 |
Common Stock, Par Value | $ 1 | $ 1 |
Common Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares, Issued | 4,234,280 | 4,233,297 |
Common Stock, Shares, Outstanding | 4,234,280 | 4,233,297 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
INTEREST INCOME | ||
Interest and fees on loans and leases | $ 9,702 | $ 8,807 |
Interest on interest-bearing balances | 2 | 7 |
Interest and dividends on investment securities: | ||
U.S. Treasury and government agencies | 445 | 322 |
State and political subdivision obligations, tax-exempt | 316 | 464 |
Other securities | 43 | 94 |
Interest on federal funds sold | 51 | 3 |
Total Interest Income | 10,559 | 9,697 |
INTEREST EXPENSE | ||
Interest on deposits | 1,204 | 1,039 |
Interest on short-term borrowings | 13 | |
Interest on long-term and subordinated debt | 180 | 230 |
Total Interest Expense | 1,384 | 1,282 |
Net Interest Income | 9,175 | 8,415 |
PROVISION FOR LOAN AND LEASE LOSSES | 125 | 340 |
Net Interest Income After Provision for Loan and Lease Losses | 9,050 | 8,075 |
NONINTEREST INCOME | ||
Income from fiduciary activities | 196 | 106 |
Service charges on deposits | 205 | 155 |
Net gain on sales of investment securities | 8 | |
Earnings from cash surrender value of life insurance | 65 | 70 |
Mortgage banking income | 191 | 186 |
ATM debit card interchange income | 224 | 200 |
Merchant services income | 74 | 67 |
Net gain on sales of SBA loans | 284 | 190 |
Other income | 189 | 258 |
Total Noninterest Income | 1,436 | 1,232 |
NONINTEREST EXPENSE | ||
Salaries and employee benefits | 4,230 | 3,723 |
Occupancy expense, net | 648 | 547 |
Equipment expense | 381 | 435 |
Pennsylvania Bank Shares Tax expense | 170 | 203 |
FDIC Assessment | 194 | 153 |
Legal and professional fees | 177 | 202 |
Marketing and advertising expense | 107 | 84 |
Software licensing | 329 | 331 |
Telephone expense | 126 | 142 |
Loss on sale or write-down of foreclosed assets | 82 | 104 |
Intangible amortization | 29 | 37 |
Merger and acquisition expense | 210 | |
Other expenses | 1,119 | 1,021 |
Total Noninterest Expense | 7,802 | 6,982 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 2,684 | 2,325 |
Provision for income taxes | 690 | 520 |
NET INCOME | $ 1,994 | $ 1,805 |
PER COMMON SHARE DATA: | ||
Basic and Diluted Earnings Per Common Share | $ 0.47 | $ 0.43 |
Cash Dividends Paid | $ 0.23 | $ 0.22 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 1,994 | $ 1,805 | |
Other comprehensive income (loss): | |||
Unrealized gains arising during the period on available-for-sale securities, net of income taxes of $195 and $189, respectively | 379 | 366 | |
Reclassification adjustment for net gain on sales of available-for-sale securities included in net income, net of income taxes of ($3) and $0, respectively | [1] | (5) | |
Change in defined benefit plans, net of income taxes of ($1) and ($56), respectively | [2] | (3) | (114) |
Total other comprehensive income | 371 | 252 | |
Total comprehensive income | $ 2,365 | $ 2,057 | |
[1] | Amounts are included in net gain on sales of investment securities on the Consolidated Statements of Income as a separate element within total noninterest income. | ||
[2] | Amounts are included in the computation of net periodic benefit cost and are included in salaries and employee benefits on the Consolidated Statements of Income as a separate element within total noninterest expense. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Unrealized gains arising during the period on available for sale securities, tax | $ 195 | $ 189 |
Reclassification adjustment for net gain on sales of available for sale securities included in net income, tax | (3) | 0 |
Change in defined benefit plans, tax | $ (1) | $ (56) |
Consolidated Statements of Chan
Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Balance at Dec. 31, 2015 | $ 70,068 | $ 4,227 | $ 40,559 | $ 23,470 | $ 1,812 |
Net income | 1,805 | 1,805 | |||
Total other comprehensive income, net of taxes | 252 | 252 | |||
Employee Stock Purchase Plan (1,264 share for 2016 and 983 shares for 2017) | 19 | 1 | 18 | ||
Common stock dividends | (930) | (930) | |||
Restricted stock activity | 8 | 8 | |||
Balance at Mar. 31, 2016 | 71,222 | 4,228 | 40,585 | 24,345 | 2,064 |
Balance at Dec. 31, 2016 | 70,467 | 4,233 | 40,688 | 28,399 | (2,853) |
Net income | 1,994 | 1,994 | |||
Total other comprehensive income, net of taxes | 371 | 371 | |||
Employee Stock Purchase Plan (1,264 share for 2016 and 983 shares for 2017) | 27 | 1 | 26 | ||
Common stock dividends | (551) | (551) | |||
Restricted stock activity | 19 | 19 | |||
Balance at Mar. 31, 2017 | $ 72,327 | $ 4,234 | $ 40,733 | $ 29,842 | $ (2,482) |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||
Stock issued during period, shares, Employee Stock Purchase Plans | 983 | 1,264 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities: | ||
Net Income | $ 1,994 | $ 1,805 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan and lease losses | 125 | 340 |
Depreciation | 363 | 419 |
Amortization of intangibles | 29 | 37 |
Net (accretion) amortization of security premiums | (1,554) | 665 |
Gain on sales of investment securities | (8) | |
Earnings on cash surrender value of life insurance | (65) | (70) |
Mortgage loans originated for sale | (11,076) | (7,731) |
Proceeds from sales of mortgage loans originated for sale | 11,191 | 7,917 |
Gain on sale of mortgage loans | (191) | (186) |
SBA loans originated for sale | (3,795) | (2,500) |
Proceeds from sales of SBA loans originated for sale | 4,079 | 2,690 |
Gain on sale of SBA loans | (284) | (190) |
Loss on disposal of property, plant, and equipment | 26 | |
Loss on sale or write-down of foreclosed assets | 82 | 104 |
Restricted stock compensation expense | 19 | 8 |
Deferred income tax (benefit) expense | (43) | 53 |
Decrease (increase) in accrued interest receivable | 27 | (106) |
Decrease (increase) in other assets | 256 | (290) |
Increase in accrued interest payable | 106 | 196 |
Increase in other liabilities | 1,914 | 4,026 |
Net Cash Provided By Operating Activities | 3,195 | 7,187 |
Investing Activities: | ||
Net decrease in interest-bearing time deposits with other financial institutions | 1,985 | |
Proceeds from the sale of available-for-sale securities | 17,931 | |
Proceeds from the maturity or call of available-for-sale securities | 1,107 | 3,045 |
Purchases of available-for-sale securities | (3,538) | (29,345) |
Purchases of held-to-maturity securities | (48,926) | |
(Purchases) redemptions of restricted investment in bank stock | (32) | 1,395 |
Net increase in loans and leases | (19,984) | (7,359) |
Proceeds from the sale of bank premises and equipment held for sale | 2,201 | |
Purchases of bank premises and equipment | (770) | (154) |
Proceeds from the sale of foreclosed assets | 15 | 315 |
Net Cash Used In Investing Activities | (51,996) | (30,118) |
Financing Activities: | ||
Net increase in deposits | 36,514 | 55,538 |
Net decrease in short-term borrowings | (31,596) | |
Common stock dividend paid | (551) | (930) |
Employee Stock Purchase Plan | 27 | 19 |
Long-term debt repayment | (55) | (62) |
Net Cash Provided By Financing Activities | 35,935 | 22,969 |
Net (decrease) increase in cash and cash equivalents | (12,866) | 38 |
Cash and cash equivalents, beginning of period | 45,973 | 13,284 |
Cash and cash equivalents, end of period | 33,107 | 13,322 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | $ 1,278 | 1,086 |
Income taxes paid | 200 | |
Supplemental Noncash Disclosures: | ||
Loan transfers to foreclosed assets held for sale | $ 28 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | (1) Basis of Presentation The accompanying consolidated financial statements include the accounts of Mid Penn Bancorp, Inc. (the “Company”) and its wholly-owned subsidiaries, Mid Penn Bank (the “Bank”), and the Bank’s former wholly-owned subsidiary, Mid Penn Insurance Services, LLC (collectively, “Mid Penn”). All material intercompany accounts and transactions have been eliminated in consolidation. Effective March 1, 2016, Mid Penn Insurance Services, LLC, an immaterial subsidiary of the Bank, was liquidated. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Mid Penn believes the information presented is not misleading and the disclosures are adequate. For comparative purposes, the March 31, 2016 and December 31, 2016 balances have been reclassified, when, and if necessary, to conform to the 2017 presentation. Such reclassifications had no impact on net income. The results of operations for interim periods are not necessarily indicative of operating results expected for the full year. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. On March 29, 2017, Mid Penn announced the signing of a definitive merger agreement with The Scottdale Bank and Trust Company (“Scottdale”). Under the merger agreement, Scottdale will merge with and into Mid Penn Bank, with Mid Penn Bank as the surviving bank. Before the merger is completed, the shareholders of Mid Penn and Scottdale must approve and adopt the merger agreement, and customary regulatory approvals must be received. Refer to Note 12, Agreement and Plan of Merger Mid Penn has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2017, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2017 | |
Securities Financing Transactions Disclosures [Abstract] | |
Investment Securities | (2) Investment Securities Securities to be held for indefinite periods, but not intended to be held to maturity, are classified as available-for-sale and carried at fair value. Securities held for indefinite periods include securities that management intends to use as part of its asset and liability management strategy and that may be sold in response to liquidity needs, changes in interest rates, resultant prepayment risk, and other factors related to effective portfolio management. Securities to be held to maturity are carried at amortized cost. Realized gains and losses on dispositions are based on the net proceeds and the amortized cost of the securities sold, using the specific identification method. Unrealized gains and losses on investment securities are based on the difference between the amortized cost and fair value of each security. These unrealized gains and losses are credited or charged to other comprehensive income, whereas realized gains and losses flow through Mid Penn’s consolidated statements of income. ASC Topic 320, Investments – Debt and Equity Securities In instances when a determination is made that other-than-temporary impairment exists but the investor does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, this guidance changes the presentation and amount of the other-than-temporary impairment recognized in the income statement. The other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. Mid Penn had no securities considered by management to be other-than-temporarily impaired as of March 31, 2017 or December 31, 2016, and did not record any securities impairment charges in the respective periods ended on these dates. Mid Penn does not consider the securities with unrealized losses on the respective dates to be other-than-temporarily impaired as the unrealized losses were deemed to relate to changes in interest rates and not erosion of credit quality. The amortized cost, fair value, and unrealized gains and losses on investment securities at March 31, 2017 and December 31, 2016 are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2017 Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 45,231 $ - $ 1,592 $ 43,639 Mortgage-backed U.S. government agencies 25,590 9 521 25,078 State and political subdivision obligations 50,293 50 1,711 48,632 Corporate debt securities 1,100 5 - 1,105 Equity securities 1,168 - 97 1,071 Total available-for-sale securities 123,382 64 3,921 119,525 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 10,984 - 24 10,960 Mortgage-backed U.S. government agencies 35,507 - 131 35,376 State and political subdivision obligations 3,163 11 3 3,171 Corporate debt securities - - - - Equity securities - - - - Total held-to-maturity securities 49,654 11 158 49,507 Total $ 173,036 $ 75 $ 4,079 $ 169,032 (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2016 Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 48,520 $ 34 $ 1,542 $ 47,012 Mortgage-backed U.S. government agencies 26,181 17 579 25,619 State and political subdivision obligations 61,079 91 2,332 58,838 Corporate debt securities 1,100 - - 1,100 Equity securities 1,168 - 112 1,056 Total available-for-sale securities $ 138,048 $ 142 $ 4,565 $ 133,625 Estimated fair values of debt securities are based on quoted market prices, where applicable. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments, adjusted for differences between the quoted instruments and the instruments being valued. Investment securities having a fair value of $165,719,000 at March 31, 2017 and $131,469,000 at December 31, 2016, were pledged to secure public deposits and certain other borrowings. Mid Penn realized gross gains of $123,000 and gross losses of $115,000 on sales of securities available-for-sale during the three months ended March 31, 2017. There were no securities sold during the three months ended March 31, 2016. The following tables present gross unrealized losses and fair value of investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2017 and December 31, 2016. (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized March 31, 2017 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale securities: U.S. Treasury and U.S. government agencies 23 $ 43,639 $ 1,592 0 $ - $ - 23 $ 43,639 $ 1,592 Mortgage-backed U.S. government agencies 18 24,573 521 0 - - 18 24,573 521 State and political subdivision obligations 85 42,151 1,711 0 - - 85 42,151 1,711 Equity securities 0 - - 2 1,071 97 2 1,071 97 Total temporarily impaired available-for-sale securities 126 110,363 3,824 2 1,071 97 128 111,434 3,921 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 4 10,960 24 0 - - 4 10,960 24 Mortgage-backed U.S. government agencies 19 32,780 131 0 - - 19 32,780 131 State and political subdivision obligations 1 315 3 0 - - 1 315 3 Total temporarily impaired held-to-maturity securities 24 44,055 158 0 - - 24 44,055 158 Total 150 $ 154,418 $ 3,982 2 $ 1,071 $ 97 152 $ 155,489 $ 4,079 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized December 31, 2016 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale securities: U.S. Treasury and U.S. government agencies 23 $ 43,698 $ 1,542 0 $ - $ - 23 $ 43,698 $ 1,542 Mortgage-backed U.S. government agencies 18 24,321 579 0 - - 18 24,321 579 State and political subdivision obligations 108 50,582 2,332 0 - - 108 50,582 2,332 Equity securities 0 - - 2 1,056 112 2 1,056 112 Total temporarily impaired available-for-sale securities 149 $ 118,601 $ 4,453 2 $ 1,056 $ 112 151 $ 119,657 $ 4,565 Management evaluates securities for other-than-temporary impairment on a quarterly basis; and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, and the financial condition and near term prospects of the issuer. In addition, for debt securities, Mid Penn considers (a) whether management has the intent to sell the security, (b) it is more likely than not that management will be required to sell the security prior to its anticipated recovery, and (c) whether management expects to recover the entire amortized cost basis. For equity securities, management considers the intent and ability to hold securities until recovery of unrealized losses. The majority of the investment portfolio is comprised of securities issued by U.S. government agencies and state and political subdivision obligations. For the investment securities with an unrealized loss, Mid Penn has concluded, based on its analysis, that the unrealized losses in the investments are primarily caused by the movement of interest rates and not due to an erosion of credit quality. At March 31, 2017, Mid Penn had 150 debt securities and 2 equity securities with unrealized losses totaling $4,079,000 that were temporarily impaired approximately 2.62% from their amortized cost basis. The available-for-sale securities with unrealized losses included in these totals at March 31, 2017 were 126 debt securities and 2 equity securities totaling $3,921,000, which were temporarily impaired by approximately 3.52% from their amortized cost basis. There were also 24 held-to-maturity debt securities with unrealized losses included in these totals at March 31, 2017 totaling $158,000, or a 0.36% temporary impairment from their amortized cost basis. At March 31, 2017, the majority of the unrealized losses on available-for-sale securities in an unrealized loss position were attributed to obligations of state and political subdivisions and U.S. Treasury and government agencies, while the majority of the unrealized losses on held-to-maturity securities in an unrealized loss position were attributed to mortgage-backed U.S. government agencies. At December 31, 2016, 149 debt securities and 2 equity securities with unrealized losses totaling $4,565,000 were temporarily impaired by approximately 3.82% from their amortized cost basis. At December 31, 2016, the majority of the unrealized losses on securities in an unrealized loss position were attributed state and political subdivision obligations and U.S. Treasury and government agencies. The table below illustrates the maturity distribution of investment securities at amortized cost and fair value. (Dollars in thousands) Available-for-sale Held-to-maturity Amortized Fair Amortized Fair March 31, 2017 Cost Value Cost Value Due in 1 year or less $ 787 $ 795 $ - $ - Due after 1 year but within 5 years 16,946 16,709 10,984 10,960 Due after 5 years but within 10 years 57,087 55,150 3,163 3,171 Due after 10 years 21,804 20,722 - - 96,624 93,376 14,147 14,131 Mortgage-backed securities 25,590 25,078 35,507 35,376 Equity securities 1,168 1,071 - - $ 123,382 $ 119,525 $ 49,654 $ 49,507 |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Loans and Allowance for Loan and Lease Losses | (3) Loans and Allowance for Loan and Lease Losses Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans, generally being amortized over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. The loan portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial real estate, commercial real estate-construction and lease financing. Consumer loans consist of the following classes: residential mortgage loans, home equity loans and other consumer loans. For all classes of loans, the accrual of interest generally is discontinued when the contractual payment of principal or interest has become 90 days or more past due, or management has serious doubts about further collectability of principal or interest even though the loan is currently performing. A loan past due 90 days or more may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest is credited to income. Interest received on nonaccrual loans, including impaired loans, is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Nonaccrual loans may be restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally, at least nine consecutive months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. Commercial and industrial Mid Penn originates commercial and industrial loans. Most of the Bank’s commercial and industrial loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory, and accounts receivable. Commercial loans also involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies. The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Generally, the maximum term on non-mortgage lines of credit is one year. The loan-to-value ratio on such loans and lines of credit generally may not exceed 80 percent of the value of the collateral securing the loan. The Bank’s commercial business lending policy includes credit file documentation and analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower. Analysis of the borrower’s past, present, and future cash flows is also an important aspect of the Bank’s current credit analysis. Nonetheless, such loans are believed to carry higher credit risk than other extensions of credit. Commercial and industrial loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial business loans may be substantially dependent on the success of the business itself, which, in turn, is likely to be dependent upon the general economic environment. Mid Penn’s commercial and industrial loans are usually, but not always, secured by business assets and personal guarantees. However, the collateral securing the loans may depreciate over time, may be difficult to appraise, and may fluctuate in value based on the success of the business. Commercial real estate and commercial real estate - construction Commercial real estate and commercial real estate construction loans generally present a higher level of risk than loans secured by one-to-four family residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties, and the increased difficulty of evaluating and monitoring these types of loans. In addition, the repayment of loans secured by commercial real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced, the borrower’s ability to repay the loan may be impaired. Residential mortgage Mid Penn offers a wide array of residential mortgage loans for both permanent structures and those under construction. The Bank’s residential mortgage originations are secured primarily by properties located in its primary market and surrounding areas. Residential mortgage loans have terms up to a maximum of 30 years and with loan-to-value ratios up to 100 percent of the lesser of the appraised value of the security property or the contract price. Private mortgage insurance is generally required in an amount sufficient to reduce the Bank’s exposure to at or below the 85 percent loan to value level. Residential mortgage loans generally do not include prepayment penalties. In underwriting residential mortgage loans, the Bank evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Most properties securing real estate loans made by Mid Penn are appraised by independent fee appraisers. The Bank generally requires borrowers to obtain title insurance and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Bank generally contain a “due on sale” clause allowing the Bank to declare the unpaid principal balance due and payable upon the sale of the security property. The Bank underwrites residential mortgage loans to the standards established by the secondary mortgage market, i.e., Fannie Mae, Ginnie Mae, Freddie Mac, or Pennsylvania Housing Finance Agency standards, with the intention of selling the majority of residential mortgages originated into the secondary market. In the event that the facts and circumstances surrounding a residential mortgage application do not meet all underwriting conditions of the secondary mortgage market, the Bank will evaluate the failed conditions and evaluate the potential risk of holding the residential mortgage in the Bank’s portfolio rather than rejecting the loan request. In the event that the loan is held in the Bank’s portfolio, the interest rate on the residential mortgage would be increased to compensate for the added portfolio risk. Consumer, including home equity Mid Penn offers a variety of secured consumer loans, including home equity, automobile, and deposit secured loans. In addition, the Bank offers other secured and unsecured consumer loans. Most consumer loans are originated in Mid Penn’s primary market and surrounding areas. The largest component of Mid Penn’s consumer loan portfolio consists of fixed rate home equity loans and variable rate home equity lines of credit. Substantially all home equity loans and lines of credit are secured by junior lien mortgages on principal residences. The Bank will lend amounts, which, together with all prior liens, typically may be up to 85 percent of the appraised value of the property securing the loan. Home equity term loans may have maximum terms up to 20 years while home equity lines of credit generally have maximum terms of five years. Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts, and an assessment of ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, in relation to the proposed loan amount. Consumer loans may entail greater credit risk than do residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans. Junior liens inherently have more credit risk by virtue of the fact that another financial institution may have a higher security position in the case of foreclosure liquidation of collateral to extinguish the debt. Generally, foreclosure actions could become more prevalent if the real estate market weakens and property values deteriorate. Allowance for Loan and Lease Losses The allowance for credit losses (“allowance”) consists of (i) the allowance for loan and lease losses, and (ii) the reserve for unfunded lending commitments. The allowance for loan and lease losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet. The reserve for unfunded lending commitments was $127,000 at March 31, 2017 and $120,000 at December 31, 2016. The allowance is increased by the provision for loan and lease losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. Because all identified losses are immediately charged off, no portion of the allowance is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on Mid Penn’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include changes in economic conditions, fluctuations in loan quality measures, changes in collateral values, changes in the experience of the lending staff and loan review systems, changes in lending policies and procedures (including underwriting standards), changes in the mix and volume of loans originated, the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio, shifting industry or portfolio concentrations, and other relevant factors. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. Mid Penn generally considers a commercial loan (consisting of commercial and industrial, commercial real estate, commercial real estate-construction, and lease financing loan classes) to be impaired when it becomes 90 days or more past due and not in the process of collection or sooner when it is probable that Mid Penn will be unable to collect all contractual principal and interest due. This methodology assumes the borrower cannot or will not continue to make additional payments. At that time the loan would generally be considered collateral dependent as the discounted cash flow method would generally indicate no operating income available for evaluating the collateral position; therefore, most impaired loans are deemed to be collateral dependent. In addition, Mid Penn’s rating system assumes any loans classified as nonaccrual, included in the substandard rating, to be impaired, and most of these loans are considered collateral dependent; therefore, most of Mid Penn’s impaired loans, whether reporting a specific allocation or not, are considered collateral dependent. Mid Penn evaluates loans for charge-off on a monthly basis. Policies that govern the recommendation for charge-off are unique to the type of loan being considered. Commercial loans rated as substandard nonaccrual or lower will first have a collateral evaluation completed in accordance with the guidance on impaired loans. Once the collateral evaluation has been completed, a specific allocation of allowance is made based upon the results of the evaluation. The remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). In the event the loan is unsecured, the loan would have been charged-off at the recognition of impairment. Commercial real estate loans rated as impaired will also have an initial collateral evaluation completed in accordance with the guidance on impaired loans. An updated real estate valuation is ordered and the collateral evaluation is modified to reflect any variations in value. A specific allocation of allowance is made for any anticipated collateral shortfall. The remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). The process of charging off a residential mortgage loan begins when a loan becomes delinquent for 90 days and is not in the process of collection. The existing appraisal is reviewed and a lien search is obtained to determine lien position and any instances of intervening liens. A new appraisal of the property will be ordered if deemed necessary by management and a collateral evaluation is completed. The loan will then be charged down to the value indicated in the evaluation. Consumer loans (including home equity loans and other consumer loans) are recommended for charge-off after reaching delinquency of 90 days and the loan is not well-secured or otherwise not probable for collection. The collateral shortfall of the consumer loan is recommended for charge-off at this point. As noted above, Mid Penn assesses a specific allocation for commercial loans and commercial real estate loans. The remaining balance remains a nonperforming loan with the original terms and interest rate intact (not restructured). In addition, Mid Penn takes a preemptive step when any commercial loan becomes classified under its internal classification system. A preliminary collateral evaluation, in accordance with the guidance on impaired loans, is prepared using the existing collateral information in the loan file. This process allows Mid Penn to review both the credit and documentation files to determine the status of the information needed to make a collateral evaluation. This collateral evaluation is preliminary but allows Mid Penn to determine if any potential collateral shortfalls exist. It is Mid Penn’s policy to obtain updated third party valuations on all impaired loans collateralized by real estate as soon as practically possible of the credit being classified as substandard nonaccrual. Prior to receipt of the updated real estate valuation Mid Penn will use any existing real estate valuation to determine any potential allowance issues; however, no allowance recommendation will be made until such time Mid Penn is in receipt of the updated valuation. The Asset Recovery department employs an electronic tracking system to monitor the receipt of and need for updated appraisals. To date, there have been no material time lapses noted with the above processes. In some instances Mid Penn is not holding real estate as collateral and is relying on business assets (personal property) for repayment. In these circumstances a collateral inspection is performed by Mid Penn personnel to determine an estimated value. The value is based on net book value, as provided by the financial statements, and discounted accordingly based on determinations made by management. Occasionally, Mid Penn will employ an outside service to provide a fair estimate of value based on auction sales or private sales. Management reviews the estimates of these third parties and discounts them accordingly based on management’s judgment, if deemed necessary. For impaired loans with no valuation allowance required, Mid Penn’s practice of obtaining independent third party market valuations on the subject property as soon as practically possible of the credit being placed on nonaccrual status sometimes indicates that the loan to value ratio is sufficient to obviate the need for a specific allocation in spite of significant deterioration in real estate values in Mid Penn’s primary market area. These circumstances are determined on a case by case analysis of the impaired loans. Mid Penn actively monitors the values of collateral on impaired loans. This monitoring may require the modification of collateral values over time or changing circumstances by some factor, either positive or negative, from the original values. All collateral values will be assessed by management at least every 12 months for possible revaluation by an independent third party. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, Mid Penn does not separately identify individual residential mortgage loans, home equity loans and other consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. Loans whose terms are modified are classified as troubled debt restructurings if the borrowers have been granted concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Nonaccrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for nine consecutive months after modification. Loans classified as troubled debt restructurings are designated as impaired. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors, and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful, and loss. Loans criticized as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Any loans not classified as noted above are rated pass. In addition, Federal and State regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance and may require the Bank to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. Acquired Loans Loans that Mid Penn acquires in connection with business combinations are recorded at fair value with no carryover of the existing related allowance for loan losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. These loans are accounted for under the ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Loans acquired through business combinations that meet the specific criteria of ASC 310-30 are individually evaluated each period to analyze expected cash flows. To the extent that the expected cash flows of a loan have decreased due to credit deterioration, Mid Penn establishes an allowance. Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20. These loans are initially recorded at fair value, and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Acquired loans that met the criteria for impaired or nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent if Mid Penn expects to fully collect the new carrying value (i.e. fair value) of the loans. As such, Mid Penn may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. The classes of the loan portfolio, summarized by the pass rating, (net of deferred fees and costs of $274,000 as of March 31, 2017 and $196,000 as of December 31, 2016), and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of March 31, 2017 and December 31, 2016, are as follows: (Dollars in thousands) Special March 31, 2017 Pass Mention Substandard Doubtful Total Commercial and industrial $ 174,898 $ 209 $ 1,212 $ - $ 176,319 Commercial real estate 454,710 2,184 7,183 - 464,077 Commercial real estate - construction 51,393 197 1,285 - 52,875 Lease financing 358 - - - 358 Residential mortgage 97,849 104 1,335 - 99,288 Home equity 38,227 132 179 - 38,538 Consumer 2,765 - - - 2,765 $ 820,200 $ 2,826 $ 11,194 $ - $ 834,220 (Dollars in thousands) Special December 31, 2016 Pass Mention Substandard Doubtful Total Commercial and industrial $ 170,780 $ 937 $ 801 $ - $ 172,518 Commercial real estate 437,592 1,683 7,249 - 446,524 Commercial real estate - construction 52,888 202 1,286 - 54,376 Lease financing 425 - - - 425 Residential mortgage 97,994 107 1,356 - 99,457 Home equity 37,242 142 224 - 37,608 Consumer 3,016 - - - 3,016 $ 799,937 $ 3,071 $ 10,916 $ - $ 813,924 Impaired loans by loan portfolio class as of March 31, 2017 and December 31, 2016 are summarized as follows: March 31, 2017 December 31, 2016 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial and industrial $ 1 $ 9 $ - $ 4 $ 9 $ - Commercial real estate: Commercial real estate 387 884 - 726 1,792 - Acquired with credit deterioration 788 788 - 842 842 - Commercial real estate - construction 615 618 618 618 Residential mortgage: Residential mortgage 880 909 - 848 882 - Acquired with credit deterioration 332 332 - 389 389 - Home equity 103 145 - 111 129 - With an allowance recorded: Commercial and industrial $ 70 $ 83 $ 35 $ 56 $ 62 $ 6 Commercial real estate 2,833 2,993 957 2,520 2,646 711 Commercial real estate - construction 240 242 32 242 242 72 Residential mortgage 67 68 67 68 68 68 Home equity - - - 29 49 1 Total Impaired Loans: Commercial and industrial $ 71 $ 92 $ 35 $ 60 $ 71 $ 6 Commercial real estate 4,008 4,665 957 4,088 5,280 711 Commercial real estate - construction 855 860 32 860 860 72 Residential mortgage 1,279 1,309 67 1,305 1,339 68 Home equity 103 145 - 140 178 1 The average recorded investment of impaired loans and related interest income recognized for the three months ended March 31, 2017 and 2016 are summarized as follows: Three Months Ended March 31, 2017 March 31, 2016 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 2 $ - $ 13 $ - Commercial real estate: Commercial real estate 403 279 1,016 - Acquired with credit deterioration 831 - 925 - Commercial real estate - construction 617 - - - Residential mortgage: Residential mortgage 864 11 1,325 2 Acquired with credit deterioration 373 - 372 4 Home equity 122 2 71 - With an allowance recorded: Commercial and industrial $ 35 $ - $ 109 $ - Commercial real estate 2,676 - 1,845 - Commercial real estate - construction 241 - - - Residential mortgage 67 - - - Home equity - - 18 - Total Impaired Loans: Commercial and industrial $ 37 $ - $ 122 $ - Commercial real estate 3,910 279 3,786 - Commercial real estate - construction 858 - - - Residential mortgage 1,304 11 1,697 6 Home equity 122 2 89 - Nonaccrual loans by loan portfolio class as of March 31, 2017 and December 31, 2016 are summarized as follows: (Dollars in thousands) March 31, 2017 December 31, 2016 Commercial and industrial $ 71 $ 4 Commercial real estate 3,226 2,939 Commercial real estate - construction 855 860 Residential mortgage 664 715 Home equity 103 140 $ 4,919 $ 4,658 The performance and credit quality of the loan portfolio is also monitored by the 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, 2017 and December 31, 2016 are summarized as follows: Loans (Dollars in thousands) 30-59 60-89 Greater Receivable > Days Past Days Past than 90 Total Past 90 Days and March 31, 2017 Due Due Days Due Current Total Loans Accruing Commercial and industrial $ 1,604 $ - $ 71 $ 1,675 $ 174,644 $ 176,319 $ - Commercial real estate: Commercial real estate 145 791 2,093 3,029 460,260 463,289 - Acquired with credit deterioration - - 58 58 730 788 58 Commercial real estate - construction 247 - 488 735 52,140 52,875 - Lease financing - - - - 358 358 - Residential mortgage: Residential mortgage 455 13 266 734 98,222 98,956 - Acquired with credit deterioration 34 - 193 227 105 332 - Home equity 266 - 65 331 38,207 38,538 - Consumer 9 - 9 2,756 2,765 - Total $ 2,751 $ 813 $ 3,234 $ 6,798 $ 827,422 $ 834,220 $ 58 Loans (Dollars in thousands) 30-59 60-89 Greater Receivable > Days Past Days Past than 90 Total Past 90 Days and December 31, 2016 Due Due Days Due Current Total Loans Accruing Commercial and industrial $ 164 $ 12 $ 4 $ 180 $ 172,338 $ 172,518 $ - Commercial real estate: Commercial real estate 475 - 1,004 1,479 444,203 445,682 - Acquired with credit deterioration - - 59 59 783 842 59 Commercial real estate - construction - 404 84 488 53,888 54,376 - Lease financing - - - - 425 425 - Residential mortgage: Residential mortgage 548 124 237 909 98,159 99,068 - Acquired with credit deterioration - - 238 238 151 389 - Home equity 33 13 125 171 37,437 37,608 - Consumer - - - - 3,016 3,016 - Total $ 1,220 $ 553 $ 1,751 $ 3,524 $ 810,400 $ 813,924 $ 59 The following tables summarize the allowance and recorded investments in loans receivable. (Dollars in thousands) As of, and for the periods ended, March 31, 2017 Commercial and industrial Commercial real estate Commercial real estate - construction Lease financing Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, January 1, 2017 $ 1,580 $ 4,323 $ 144 $ 1 $ 541 $ 379 $ 3 $ 212 $ 7,183 Charge-offs (12 ) - - - (18 ) - (6 ) - (36 ) Recoveries 4 340 - - 1 - 3 - 348 Provisions 58 52 (43 ) - 8 (15 ) 3 62 125 Ending balance, March 31, 2017 1,630 4,715 101 1 532 364 3 274 7,620 Ending balance: individually evaluated for impairment 35 957 32 - 67 - - - 1,091 Ending balance: collectively evaluated for impairment $ 1,595 $ 3,758 $ 69 $ 1 $ 465 $ 364 $ 3 $ 274 $ 6,529 Loans receivables: Ending balance $ 176,319 $ 464,077 $ 52,875 $ 358 $ 99,288 $ 38,538 $ 2,765 $ - $ 834,220 Ending balance: individually evaluated for impairment 72 3,220 855 - 946 103 - - 5,196 Ending balance: acquired with credit deterioration - 788 - - 332 - - - 1,120 Ending balance: collectively evaluated for impairment $ 176,247 $ 460,069 $ 52,020 $ 358 $ 98,010 $ 38,435 $ 2,765 $ - $ 827,904 (Dollars in thousands) As of, and for the periods ended, March 31, 2016 Commercial and industrial Commercial real estate Commercial real estate - construction Lease financing Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, January 1, 2016 $ 1,393 $ 3,552 $ 153 $ 1 $ 534 $ 317 $ 12 $ 206 $ 6,168 Charge-offs - (96 ) - - - - (3 ) - (99 ) Recoveries 1 25 - - - - 4 - 30 Provisions 33 296 (34 ) - (18 ) (14 ) (4 ) 81 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | (4) Fair Value Measurement Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. This guidance provides additional information on determining when the volume and level of activity for the asset or liability has significantly decreased. The guidance also includes information on identifying circumstances when a transaction may not be considered orderly. Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with the fair value measurement and disclosure guidance. This guidance clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own belief about the assumptions market participants would use in pricing the asset or liability based upon the best information available in the circumstances. Fair value measurement and disclosure guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. An asset’s or liability’s placement in the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement or disclosure. The fair value hierarchy is as follows: Level 1 Inputs - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Inputs - 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 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). 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 for the three months ended March 31, 2017. The following tables illustrate the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels. Fair value measurements at March 31, 2017 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: March 31, 2017 (Level 1) (Level 2) (Level 3) Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 43,639 $ - $ 43,639 $ - Mortgage-backed U.S. government agencies 25,078 - 25,078 - State and political subdivision obligations 48,632 - 48,632 - Corporate debt securities 1,105 1,105 Equity securities 1,071 1,071 - - Total $ 119,525 $ 1,071 $ 118,454 $ - Fair value measurements at December 31, 2016 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2016 (Level 1) (Level 2) (Level 3) Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 47,012 $ 1,864 $ 45,148 $ - Mortgage-backed U.S. government agencies 25,619 - 25,619 - State and political subdivision obligations 58,838 - 58,838 - Corporate debt securities 1,100 - 1,100 Equity securities 1,056 1,056 - - Total $ 133,625 $ 2,920 $ 130,705 $ - Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following tables illustrate the assets measured at fair value on a nonrecurring basis segregated by hierarchy fair value levels. Fair value measurements at March 31, 2017 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: March 31, 2017 (Level 1) (Level 2) (Level 3) Impaired Loans $ 2,224 $ - $ - $ 2,224 Foreclosed Assets Held for Sale 127 - - 127 Mortgage Servicing Rights 139 - - 139 Fair value measurements at December 31, 2016 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2016 (Level 1) (Level 2) (Level 3) Impaired Loans $ 2,404 $ - $ - $ 2,404 Foreclosed Assets Held for Sale 135 - - 135 Mortgage Servicing Rights 144 - - 144 The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Mid Penn has utilized Level 3 inputs to determine the fair value. (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements March 31, 2017 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 2,224 Appraisal of collateral (a) Appraisal adjustments (b) 0% - 72% 31% Foreclosed Assets Held for Sale 127 Appraisal of collateral (a), (c) Appraisal adjustments (b) 17% - 31% 26% Mortgage Servicing Rights 139 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 365% (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements December 31, 2016 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 2,404 Appraisal of collateral (a) Appraisal adjustments (b) 11% - 70% 30% Foreclosed Assets Held for Sale 135 Appraisal of collateral (a), (c) Appraisal adjustments (b) 26% - 31% 27% Mortgage Servicing Rights 144 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 365% (a) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (b) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal. ( c ) Includes qualitative adjustments by management and estimated liquidation expenses. The following methodologies and assumptions were used to estimate the fair value of Mid Penn’s financial instruments: Cash and Cash Equivalents: The carrying value of cash and cash equivalents is considered to be a reasonable estimate of fair value. Interest-bearing Balances with other Financial Institutions: The estimate of fair value was determined by comparing the present value of quoted interest rates on like deposits with the weighted average yield and weighted average maturity of the balances. Securities Available-for-sale: The fair value of 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. Held-to-maturity securities: The fair values of held-to-maturity securities are based on a market approach using observable inputs such as benchmark yields and securities, reported trades, issuer spreads, current bids and offers, monthly payment information and collateral performance. Loans held for sale: The fair values of mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Impaired Loans (included in “Net Loans and Leases” in the following tables): Mid Penn’s rating system assumes any loans classified as substandard and nonaccrual to be impaired, and all of these loans are considered collateral dependent; therefore, all of Mid Penn’s impaired loans, whether reporting a specific allocation or not, are considered collateral dependent. It is Mid Penn’s policy to obtain updated third party valuations on all impaired loans collateralized by real estate within 30 days of the credit being classified as substandard nonaccrual. Prior to receipt of the updated real estate valuation Mid Penn will use any existing real estate valuation to determine any potential allowance issues; however no allowance recommendation will be made until which time Mid Penn is in receipt of the updated valuation. In some instances Mid Penn is not holding real estate as collateral and is relying on business assets (personal property) for repayment. In these circumstances a collateral inspection is performed by Mid Penn personnel to determine an estimated value. The value is based on net book value, as provided by the financial statements, and discounted accordingly based on determinations made by management. Occasionally, Mid Penn will employ an outside service to provide a fair estimate of value based on auction sales or private sales. Management reviews the estimates of these third parties and discounts them accordingly based on management’s judgment, if deemed necessary. Mid Penn considers the estimates used in its impairment analysis to be Level 3 inputs. Mid Penn actively monitors the values of collateral on impaired loans. This monitoring may require the modification of collateral values over time or changing circumstances by some factor, either positive or negative, from the original values. All collateral values will be assessed by management at least every 12 months for possible revaluation by an independent third party. Loans: For variable rate loans that reprice frequently and which entail no significant changes in credit risk, carrying values approximated fair value. The fair value of other loans are estimated by calculating the present value of the cash flow difference between the current rate and the market rate, for the average maturity, discounted quarterly at the market rate. Foreclosed Assets Held for Sale: Certain assets included in foreclosed assets held for sale are carried at fair value and accordingly is presented as measured on a non-recurring basis. Values are estimated using Level 3 inputs, based on appraisals that consider the sales prices of property in the proximate vicinity. Accrued Interest Receivable and Payable: The carrying amount of accrued interest receivable and payable approximates their fair values. Restricted Investment in Bank Stocks: The carrying amount of required and restricted investment in correspondent bank stock approximates fair value, and considers the limited marketability of such securities. Mortgage Servicing Rights: The fair value of servicing rights is based on the present value of estimated future cash flows on pools of mortgages stratified by rate and maturity date. Deposits: The fair value for demand deposits (e.g., interest and noninterest checking, savings, and money market deposit accounts) is by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amounts). Fair value for fixed-rate certificates of deposit was estimated using a discounted cash flow calculation by combining all fixed-rate certificates into a pool with a weighted average yield and a weighted average maturity for the pool and comparing the pool with interest rates currently being offered on a similar maturity. Short-term Borrowings: Because of time to maturity, the estimated fair value of short-term borrowings approximates the book value. Long-term and Subordinated Debt: The estimated fair values of long-term and subordinated debt were determined using discounted cash flow analysis, based on currently available borrowing rates for similar types of borrowing arrangements. Commitments to Extend Credit and Letters of Credit: The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account market interest rates, the remaining terms and present credit worthiness of the counterparties. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements. The following table summarizes the carrying value and fair value of financial instruments at March 31, 2017 and December 31, 2016. (Dollars in thousands) March 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 33,107 $ 33,107 $ 45,973 $ 45,973 Available-for-sale investment securities 119,525 119,525 133,625 133,625 Held-to-maturity investment securities 49,654 49,507 - - Loans held for sale 2,035 2,035 1,959 1,959 Net loans and leases 826,600 843,814 806,741 824,293 Restricted investment in bank stocks 2,475 2,475 2,443 2,443 Accrued interest receivable 3,901 3,901 3,928 3,928 Mortgage servicing rights 139 139 144 144 Financial liabilities: Deposits $ 971,887 $ 972,196 $ 935,373 $ 935,075 Long-term debt 13,524 13,557 13,581 13,614 Subordinated debt 7,416 7,488 7,414 7,534 Accrued interest payable 621 621 515 515 Off-balance sheet financial instruments: Commitments to extend credit $ - $ - $ - $ - Financial standby letters of credit - - - - The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of March 31, 2017 and December 31, 2016. Carrying values approximate fair values for cash and cash equivalents, interest-bearing time balances with other financial institutions, loans held for sale, restricted investment in bank stocks, mortgage servicing rights, accrued interest receivable and payable, and short-term borrowings. Other than cash and cash equivalents, which are considered Level 1 Inputs and mortgage servicing rights, which are Level 3 inputs, these instruments are Level 2 Inputs. These tables exclude financial instruments for which the carrying amount approximates fair value, not previously disclosed. Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs March 31, 2017 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 49,654 $ 49,507 $ - $ 49,507 $ - Net loans and leases 826,600 843,814 - - 843,814 Financial instruments - liabilities Deposits $ 971,887 $ 972,196 $ - $ 972,196 $ - Long-term debt 13,524 13,557 - 13,557 - Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs December 31, 2016 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Net loans and leases $ 806,741 $ 824,293 $ - $ - $ 824,293 Financial instruments - liabilities Deposits $ 935,373 $ 935,075 $ - $ 935,075 $ - Long-term debt 13,581 13,614 - 13,614 - |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
Guarantees | (5) Guarantees In the normal course of business, Mid Penn makes various commitments and incurs certain contingent liabilities which are not reflected in the accompanying consolidated financial statements. 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 $19,231,000 and $14,000,000 standby letters of credit outstanding as of March 31, 2017 and December 31, 2016, respectively. Mid Penn does not anticipate any losses because of these transactions. The current amount of the liability as of March 31, 2017 for payment under standby letters of credit issued was not material. |
Subordinated Debt
Subordinated Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | (6) Subordinated Debt On December 9, 2015, Mid Penn sold $7,500,000 aggregate principal amount of Subordinated Debt (“Notes”) due 2025. The Notes are treated as Tier 2 capital for regulatory capital purposes. The Notes bear interest at a rate of 5.15% per year for the first five years and then float at the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no time be less than 4.0%. Interest will be payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2016. The Notes will mature on December 9, 2025 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 9, 2020, and prior to December 9, 2025. Additionally, Mid Penn may redeem the Notes in whole at any time, or in part from time to time, upon at least 30 days’ notice if: (i) a change or prospective change in law occurs that could prevent Mid Penn from deducting interest payable on the Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) Mid Penn becomes required to register as an investment company under the Investment Company Act of 1940, as amended, in each case at 100% of the principal amount of the subordinated notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the Notes may not accelerate the maturity of the Notes, except upon Mid Penn’s or Mid Penn Bank, its principal banking subsidiary’s, bankruptcy, insolvency, liquidation, receivership or similar event. ASC Subtopic 835-30, Simplifying the Presentation of Debt Issuance Costs |
Defined Benefit Plans
Defined Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Defined Benefit Plans | (7) Defined Benefit Plans Mid Penn has an unfunded noncontributory defined benefit retirement plan for directors. The plan provides defined benefits based on years of service. In addition, Mid Penn sponsors a defined benefit health care plan that provides post-retirement medical benefits and life insurance to qualifying full-time employees. These health care and life insurance plans are noncontributory. A December 31 measurement date for the plans is used. The components of net periodic benefit costs from these benefit plans are as follows: Three Months Ended March 31, (Dollars in thousands) Pension Benefits Other Benefits 2017 2016 2017 2016 Service cost $ 9 $ 9 $ 1 $ 1 Interest cost 11 12 5 6 Amortization (accretion) of prior service cost 3 (16 ) (6 ) (98 ) Net periodic benefit cost (benefit) $ 23 $ 5 $ - $ (91 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | (8) Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of taxes, are as follows: (Dollars in thousands) Unrealized Loss on Securities Defined Benefit Plans Accumulated Other Comprehensive Loss Balance - March 31, 2017 $ (2,545 ) $ 63 $ (2,482 ) Balance - December 31, 2016 $ (2,919 ) $ 66 $ (2,853 ) |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2017 | |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |
Common Stock | (9) Common Stock On June 25, 2014, the 2014 Restricted Stock Plan (the “Plan”) provides awards that shall not exceed, in the aggregate, 100,000 shares of common stock. Awards under the Plan are limited to employees and directors of the Company and the Bank selected by the Compensation Committee of the Board of Directors, to advance the best interest of Mid Penn and its shareholders. Current outstanding awards under the Plan require recipients to acquire specified ownership interest levels in Mid Penn in order for such award to vest, and thereby, encouraging them to contribute to the success of the company. Share-based compensation expense relating to restricted stock is recognized on a straight-line basis over the vesting periods of the awards and is a component of salaries and benefits expense. As of March 31, 2017, 16,045 shares have been granted under the plan, which resulted in $19,000 in compensation expense for the three months ended March 31, 2017, while $8,000 expense was recorded for the three months ended March 31, 2016. As of March 31, 2017, 2,990 restricted shares have vested, while the remaining 13,055 granted shares remain unvested. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | (10) Earnings per Common Share Earnings per share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each of the years presented. The following data show the amounts used in computing basic earnings per common share. The computations of basic earnings per common share follow: (Dollars in thousands, except per share data) Three Months Ended March 31, 2017 2016 Net income available to common shareholders $ 1,994 $ 1,805 Weighted average common shares outstanding 4,233,308 4,226,731 Basic earnings per common share $ 0.47 $ 0.43 Mid Penn had no dilutive instruments outstanding during the periods ended March 31, 2017 and 2016. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncement Or Change In Accounting Principle Retrospective Adjustments [Abstract] | |
Recent Accounting Pronouncements | (11) Recent Accounting Pronouncements ASU 2017-08 : The Financial Accounting Standards Board (“FASB”) issued ASU 2017-08; Premium Amortization on Purchased Callable Debt Securities The ASU shortens the amortization period for premiums on purchased callable debt securities to the earliest call date (i.e., yield-to-earliest call amortization), rather than amortizing over the full contractual term, but does not change the accounting for securities held at a discount. The ASU applies to callable debt securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based upon prepayments of the underlying loans, not because the issuer exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendments. Further, it applies to all premiums on callable debt securities, regardless of how they were generated. The ASU requires companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional future call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date. It is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. For all other entities, the amendments re effective for annual periods beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. Mid Penn is currently evaluating the impact this ASU will have on its consolidated financial statements. ASU 2017-07 : The FASB issued ASU 2017-07; Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The ASU requires that an employer disaggregate the service cost component from the other components of net benefit cost. Service cost must be presented in the same line item(s) as other employee compensation costs. These costs are generally included within income from continuing operations, but in some cases may be eligible for capitalization, if certain criteria are met. All other components of net benefit cost must be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. These generally include interest cost, actual return on plan assets, amortization of prior service cost included in accumulated other comprehensive income, and gains or losses from changes in the value of the projected benefit obligation or plan assets. If a separate line item is used to present the other components of net benefit cost, it must be appropriately described. If a separate line item is not used, an entity must disclose the line item(s) in the income statement that includes the other components of net benefit cost. The ASU clarifies that these costs are not eligible for capitalization. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those years. For other entities, the amendments are effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted as of the beginning of an annual period. As disclosed in Note 7, Defined Benefit Plans ASU 2017-05 : The FASB issued ASU 2017-05; Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets The ASU was issued to clarify the scope of Subtopic 610-20 and to add guidance for partial sales of nonfinancial assets, including partial sales of real estate. Historically, U.S. GAAP contained several different accounting models to evaluate whether the transfer of certain assets qualified for sale treatment. Moving forward, the new standard reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. Specifically, it clarifies the scope of Subtopic 610-20 by defining the term in substance nonfinancial asset. If substantially all of the fair value of the assets (recognized and unrecognized) promised to a counterparty in a contract is concentrated in nonfinancial assets, a financial asset in the same arrangement would still be considered part of an in substance nonfinancial asset. Also, nonfinancial assets may include nonfinancial assets contained within a legal entity that is transferred to a counterparty (e.g., through transfer of ownership interest). It clarifies also that derecognition of a business is not in scope of Subtopic 610-20, but rather, is governed by Topic 810. In addition, the ASU indicates an entity should identify each distinct nonfinancial asset (e.g., real estate and inventory) or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it. Finally, the ASU adds guidance on accounting for partial sales of nonfinancial assets. It requires an entity to derecognize a distinct nonfinancial asset or distinct in substance nonfinancial asset in a partial sale transaction when two criteria are met: 1) the entity does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with Topic 810, and 2) the entity transfers control of the asset in accordance with Topic 606. The effective date and transition requirements for the ASU are the same as the effective date and transition requirements of Topic 606, and must be applied at the same date that Topic 606 is initially applied. That is, the amendments are effective for public entities for annual reporting periods beginning after December 15, 2017, including interim periods within those periods, and for nonpublic entities for annual reporting periods beginning after December 15, 2018, and interim periods within annual reporting periods beginning after December 15, 2019. Consistent with Topic 606, early adoption is permitted but no earlier than annual reporting periods beginning after December 15, 2016 for all entities. Mid Penn is currently evaluating this ASU, but does not anticipate the adoption to have a material impact on its consolidated financial statements since it typically does not engage in partial sale transactions. ASU 2017-04 : The FASB issued ASU 2017-04; Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The amendments in this ASU are required for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. To simplify the subsequent measurement of goodwill, the Update eliminates Step 2 from the goodwill impairment test. An entity should now perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with it carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unity. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment, and if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. An entity should apply the amendments in this Update on a prospective basis. A public business entity should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Mid Penn plans to early adopt this ASU for its annual goodwill impairment test at the end of 2017 by comparing its fair value to its carrying value. The adoption of this ASU is not expected to have a material impact on Mid Penn’s consolidated financial statements. ASU 2016-15 : The FASB issued ASU 2016-15; Classification of Certain Cash Receipts and Cash Payments The ASU clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are intended to reduce diversity in practice. • Cash payments for debt prepayment or extinguishment costs will be classified in financing activities. • Upon settlement of zero-coupon bonds and bonds with insignificant cash coupons, the portion of the payment attributable to imputed interest will be classified as an operating activity, while the portion of the payment attributable to principal will be classified as a financing activity. • Cash paid by an acquirer that isn’t soon after a business combination for the settlement of a contingent consideration liability will be separated between financing activities and operating activities. Cash payments up to the amount of the contingent consideration liability recognized at the acquisition date will be classified in financing activities; any excess will be classified in operating activities. Cash paid soon after the business combination will be classified in investing activities. • Cash proceeds received from the settlement of insurance claims will be classified on the basis of the related insurance coverage (that is, the nature of the loss). Cash proceeds from lump-sum settlements will be classified based on the nature of each loss included in the settlement. • Cash proceeds received from the settlement of corporate-owned life insurance (“COLI”) and BOLI policies will be classified as cash inflows from investing activities. Cash payments for premiums on COLI and BOLI may be classified as cash outflows for investing, operating, or a combination of both. • A transferor’s beneficial interest obtained in a securitization of financial assets will be disclosed as a noncash activity, and cash received from beneficial interests will be classified in investing activities. • Distributions received from equity method investees will be classified using either a cumulative earnings approach or a look- through approach as an accounting policy election. The ASU contains additional guidance clarifying when an entity should separate cash receipts and cash payments and classify them into more than one class of cash flows (including when reasonable judgment is required to estimate and allocate cash flows) versus when an entity should classify the aggregate amount into one class of cash flows on the basis of predominance. The amendments are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. Mid Penn is currently evaluating this ASU, particularly related to cash payments for debt prepayment costs and cash proceeds received from the settlement of BOLI policies as these areas might affect Mid Penn in the future. This ASU, however, is not expected to have a material impact on Mid Penn’s consolidated financial statements because the guidance only affects the classification within the statement of cash flows, ASU 2016-13 : The FASB issued ASU 2016-13; Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The ASU requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“CECL”) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. Certain incremental disclosures are required. The Update has tiered effective dates, with early adoption permitted for all entities as of the fiscal year beginning after December 15, 2018. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Mid Penn is currently evaluating the details of this ASU and the impact the guidance will have on Mid Penn’s consolidated financial statements. Mid Penn expects that it is possible that the ASU will result in an increase in the allowance for credit losses resulting from the change to expected losses for the estimated life of the financial asset, including an allowance for debt securities. The amount of the increase in the allowance for credit losses resulting from the new guidance will be impacted by the portfolio composition and asset quality at the adoption date, as well as economic conditions and forecasts at the time of adoption. ASU 2016-09: The FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU introduces targeted amendments intended to simplify the accounting for stock compensation. Specifically, the ASU requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. That is, off balance sheet accounting for net operating losses stemming from excess tax benefits would no longer be required and instead such net operating losses would be recognized when they arise. Existing net operating losses that are currently tracked off balance sheet would be recognized, net of a valuation allowance if required, through an adjustment to opening retained earnings in the period of adoption. Entities will no longer need to maintain and track an “APIC pool.” The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. In addition, the ASU elevates the statutory tax withholding threshold to qualify for equity classification up to the maximum statutory tax rates in the applicable jurisdiction(s). The ASU also clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The ASU provides an optional accounting policy election (with limited exceptions), to be applied on an entity-wide basis, to either estimate the number of awards that are expected to vest (consistent with existing U.S. GAAP) or account for forfeitures when they occur. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. As disclosed in Note 9, Common Stock ASU 2016-07: The FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The ASU requires an investor to initially apply the equity method of accounting from the date it qualifies for that method, i.e., the date the investor obtains significant influence over the operating and financial policies of an investee. It also eliminates the previous requirement to retroactively adjust the investment and record a cumulative catch up for the periods that the investment had been held, but did not qualify for the equity method of accounting. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the application of the equity method. Early adoption is permitted. Mid Penn adopted this ASU in the first quarter of 2017. Mid Penn currently does not have a material volume of equity method or joint venture investments; therefore, the adoption of this ASU did not have a material impact on its consolidated financial statements. ASU 2016-02: The FASB issued ASU 2016-02, Leases. The new leases standard applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. The new leases standard requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing U.S. GAAP. Classification depends on the same five criteria used by lessees plus certain additional factors. The subsequent accounting treatment for all three lease types is substantially equivalent to existing U.S. GAAP for sales-type leases, direct financing leases, and operating leases. However, the new standard updates certain aspects of the lessor accounting model to align it with the new lessee accounting model, as well as with the new revenue standard under Topic 606. Lessees and lessors are required to provide certain qualitative and quantitative disclosures to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The new leases standard addresses other considerations including identification of a lease, separating lease and non-lease components of a contract, sale and leaseback transactions, modifications, combining contracts, reassessment of the lease term, and remeasurement of lease payments. It also contains comprehensive implementation guidance with practical examples. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Specific transition requirements apply. Mid Penn occupies certain offices under non-cancelable operating lease agreements, which currently are not reflected in its consolidated statement of condition. Mid Penn expects to recognize lease liabilities and ROU assets associated with these lease agreements as required by the ASU; however, the extent of the prospective impact on Mid Penn’s consolidated financial statements is currently under evaluation. ASU 2016-01: The FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This ASU requires equity investments to be measured at fair value with changes in fair value recognized in net income, excluding equity investments that are consolidated or accounted for under the equity method of accounting. The ASU allows equity investments without readily determinable fair values to be measured at cost minus impairment, with a qualitative assessment required to identify impairment. The ASU also requires public companies to use exit prices to measure the fair value of financial instruments, eliminates the disclosure requirements related to measurement assumptions for the fair value of instruments measured at amortized cost, and requires separate presentation of financials assets and liabilities based on form and measurement category. In addition, for liabilities measured a fair value under the fair value option, the changes in fair value due to changes in instrument-specific credit risk should be recognized in OCI. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. As of March 31, 2017, Mid Penn held $1,171,000 of equity investments (excluding restricted investments in bank stocks). Mid Penn does not expect to make significant increases in the volume of its equity investments; therefore, the adoption of this ASU is not expected to be material to Mid Penn’s consolidated financial statements. ASU 2014-09 : The FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this Update establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from contracts with Customers (Topic 606): Deferral of the Effective Date In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ASU 2014-09, including transition requirements for all amendments, is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. Early adoption is permitted as of the original effective date for interim and annual reporting periods in fiscal years beginning after December 15, 2016. Mid Penn’s implementation efforts include the identification of revenue within the scope of the guidance, particularly in regards to assessing collectability. Mid Penn’s review is ongoing, and it will continue to evaluate any prospective impact as additional guidance is issued and as its internal assessment progresses. |
Agreement and Plan of Merger
Agreement and Plan of Merger | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Agreement and Plan of Merger | (12) Agreement and Plan of Merger On March 29, 2017, Mid Penn entered into an Agreement and Plan of Merger (the “Merger Agreement”) with The Scottdale Bank and Trust Company. The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Scottdale will merge with and into Mid Penn Bank, with Mid Penn Bank as the surviving bank (the “ Merger ”). If the merger is completed, Scottdale shareholders will have the right to receive for each share of Scottdale common stock they own, at their election, (i) $1,166 in cash or (ii) a fraction of a share (the “exchange ratio”) of Mid Penn common stock determined by dividing (y) $1,166 by (z) the 10 trading day per share volume-weighted average price for Mid Penn common stock ending on the date that is five business days prior to the closing of the merger (the “ Average Price Completion of the Merger is subject to a number of customary conditions, including, among others, (i) the approval of the Merger Agreement by the shareholders of both Scottdale and Mid Penn, (ii) the effectiveness of the registration statement to be filed by Mid Penn with the SEC relating to the Mid Penn common stock to be issued in the Merger, (iii) approval of the listing on The Nasdaq Stock Market of the shares of Mid Penn common stock to be issued in the Merger, (iv) the absence of any order or other legal restriction prohibiting the closing of the Merger, (v) receipt of required regulatory approvals without the imposition of any condition or requirement, excluding standard conditions that are normally imposed by the regulatory authorities in bank merger transactions, that would, in the good faith reasonable judgment of the Board of Directors of either Mid Penn or Scottdale, materially and adversely affect the business, operations, financial condition, property or assets of the combined enterprise or materially impair the value of Scottdale to Mid Penn or the value of Mid Penn to Scottdale, and (vi) Lawrence J Kiefer and Mid Penn Bank entering into a mutually acceptable employment agreement effective as of the closing. Each party’s obligations to complete the Merger is also subject to certain additional customary conditions, including: (a) subject to certain exceptions, the accuracy of the representations and warranties of the other party, (b) performance in all material respects by the other party of its obligations under the Merger Agreement, (c) not more than 15% of the outstanding shares of Scottdale common stock have properly effected their dissenters rights, (d) the absence of any material adverse effect (as such term is defined in the Merger Agreement) with respect to the other party, and (e) the receipt by each party of an opinion from its counsel to the effect that the Merger will qualify as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Securities Financing Transactions Disclosures [Abstract] | |
Unrealized Gain (Loss) on Investments | The amortized cost, fair value, and unrealized gains and losses on investment securities at March 31, 2017 and December 31, 2016 are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2017 Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 45,231 $ - $ 1,592 $ 43,639 Mortgage-backed U.S. government agencies 25,590 9 521 25,078 State and political subdivision obligations 50,293 50 1,711 48,632 Corporate debt securities 1,100 5 - 1,105 Equity securities 1,168 - 97 1,071 Total available-for-sale securities 123,382 64 3,921 119,525 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 10,984 - 24 10,960 Mortgage-backed U.S. government agencies 35,507 - 131 35,376 State and political subdivision obligations 3,163 11 3 3,171 Corporate debt securities - - - - Equity securities - - - - Total held-to-maturity securities 49,654 11 158 49,507 Total $ 173,036 $ 75 $ 4,079 $ 169,032 (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2016 Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 48,520 $ 34 $ 1,542 $ 47,012 Mortgage-backed U.S. government agencies 26,181 17 579 25,619 State and political subdivision obligations 61,079 91 2,332 58,838 Corporate debt securities 1,100 - - 1,100 Equity securities 1,168 - 112 1,056 Total available-for-sale securities $ 138,048 $ 142 $ 4,565 $ 133,625 |
Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position | The following tables present gross unrealized losses and fair value of investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2017 and December 31, 2016. (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized March 31, 2017 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale securities: U.S. Treasury and U.S. government agencies 23 $ 43,639 $ 1,592 0 $ - $ - 23 $ 43,639 $ 1,592 Mortgage-backed U.S. government agencies 18 24,573 521 0 - - 18 24,573 521 State and political subdivision obligations 85 42,151 1,711 0 - - 85 42,151 1,711 Equity securities 0 - - 2 1,071 97 2 1,071 97 Total temporarily impaired available-for-sale securities 126 110,363 3,824 2 1,071 97 128 111,434 3,921 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 4 10,960 24 0 - - 4 10,960 24 Mortgage-backed U.S. government agencies 19 32,780 131 0 - - 19 32,780 131 State and political subdivision obligations 1 315 3 0 - - 1 315 3 Total temporarily impaired held-to-maturity securities 24 44,055 158 0 - - 24 44,055 158 Total 150 $ 154,418 $ 3,982 2 $ 1,071 $ 97 152 $ 155,489 $ 4,079 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized December 31, 2016 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale securities: U.S. Treasury and U.S. government agencies 23 $ 43,698 $ 1,542 0 $ - $ - 23 $ 43,698 $ 1,542 Mortgage-backed U.S. government agencies 18 24,321 579 0 - - 18 24,321 579 State and political subdivision obligations 108 50,582 2,332 0 - - 108 50,582 2,332 Equity securities 0 - - 2 1,056 112 2 1,056 112 Total temporarily impaired available-for-sale securities 149 $ 118,601 $ 4,453 2 $ 1,056 $ 112 151 $ 119,657 $ 4,565 |
Investments Classified by Contractual Maturity Date | (Dollars in thousands) Available-for-sale Held-to-maturity Amortized Fair Amortized Fair March 31, 2017 Cost Value Cost Value Due in 1 year or less $ 787 $ 795 $ - $ - Due after 1 year but within 5 years 16,946 16,709 10,984 10,960 Due after 5 years but within 10 years 57,087 55,150 3,163 3,171 Due after 10 years 21,804 20,722 - - 96,624 93,376 14,147 14,131 Mortgage-backed securities 25,590 25,078 35,507 35,376 Equity securities 1,168 1,071 - - $ 123,382 $ 119,525 $ 49,654 $ 49,507 |
Loans and Allowance for Loan 23
Loans and Allowance for Loan and Lease Losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Classes of the Loan Portfolio Summarized by the Aggregate Risk Rating | The classes of the loan portfolio, summarized by the pass rating, (net of deferred fees and costs of $274,000 as of March 31, 2017 and $196,000 as of December 31, 2016), and the classified ratings of special mention, substandard, and doubtful within Mid Penn’s internal risk rating system as of March 31, 2017 and December 31, 2016, are as follows: (Dollars in thousands) Special March 31, 2017 Pass Mention Substandard Doubtful Total Commercial and industrial $ 174,898 $ 209 $ 1,212 $ - $ 176,319 Commercial real estate 454,710 2,184 7,183 - 464,077 Commercial real estate - construction 51,393 197 1,285 - 52,875 Lease financing 358 - - - 358 Residential mortgage 97,849 104 1,335 - 99,288 Home equity 38,227 132 179 - 38,538 Consumer 2,765 - - - 2,765 $ 820,200 $ 2,826 $ 11,194 $ - $ 834,220 (Dollars in thousands) Special December 31, 2016 Pass Mention Substandard Doubtful Total Commercial and industrial $ 170,780 $ 937 $ 801 $ - $ 172,518 Commercial real estate 437,592 1,683 7,249 - 446,524 Commercial real estate - construction 52,888 202 1,286 - 54,376 Lease financing 425 - - - 425 Residential mortgage 97,994 107 1,356 - 99,457 Home equity 37,242 142 224 - 37,608 Consumer 3,016 - - - 3,016 $ 799,937 $ 3,071 $ 10,916 $ - $ 813,924 |
Impaired Loans by Loan Portfolio Class | Impaired loans by loan portfolio class as of March 31, 2017 and December 31, 2016 are summarized as follows: March 31, 2017 December 31, 2016 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial and industrial $ 1 $ 9 $ - $ 4 $ 9 $ - Commercial real estate: Commercial real estate 387 884 - 726 1,792 - Acquired with credit deterioration 788 788 - 842 842 - Commercial real estate - construction 615 618 618 618 Residential mortgage: Residential mortgage 880 909 - 848 882 - Acquired with credit deterioration 332 332 - 389 389 - Home equity 103 145 - 111 129 - With an allowance recorded: Commercial and industrial $ 70 $ 83 $ 35 $ 56 $ 62 $ 6 Commercial real estate 2,833 2,993 957 2,520 2,646 711 Commercial real estate - construction 240 242 32 242 242 72 Residential mortgage 67 68 67 68 68 68 Home equity - - - 29 49 1 Total Impaired Loans: Commercial and industrial $ 71 $ 92 $ 35 $ 60 $ 71 $ 6 Commercial real estate 4,008 4,665 957 4,088 5,280 711 Commercial real estate - construction 855 860 32 860 860 72 Residential mortgage 1,279 1,309 67 1,305 1,339 68 Home equity 103 145 - 140 178 1 |
Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class | The average recorded investment of impaired loans and related interest income recognized for the three months ended March 31, 2017 and 2016 are summarized as follows: Three Months Ended March 31, 2017 March 31, 2016 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 2 $ - $ 13 $ - Commercial real estate: Commercial real estate 403 279 1,016 - Acquired with credit deterioration 831 - 925 - Commercial real estate - construction 617 - - - Residential mortgage: Residential mortgage 864 11 1,325 2 Acquired with credit deterioration 373 - 372 4 Home equity 122 2 71 - With an allowance recorded: Commercial and industrial $ 35 $ - $ 109 $ - Commercial real estate 2,676 - 1,845 - Commercial real estate - construction 241 - - - Residential mortgage 67 - - - Home equity - - 18 - Total Impaired Loans: Commercial and industrial $ 37 $ - $ 122 $ - Commercial real estate 3,910 279 3,786 - Commercial real estate - construction 858 - - - Residential mortgage 1,304 11 1,697 6 Home equity 122 2 89 - |
Non-accrual Loans by Classes of the Loan Portfolio | Nonaccrual loans by loan portfolio class as of March 31, 2017 and December 31, 2016 are summarized as follows: (Dollars in thousands) March 31, 2017 December 31, 2016 Commercial and industrial $ 71 $ 4 Commercial real estate 3,226 2,939 Commercial real estate - construction 855 860 Residential mortgage 664 715 Home equity 103 140 $ 4,919 $ 4,658 |
Loan Portfolio Summarized by the Past Due Status | The classes of the loan portfolio summarized by the past due status as of March 31, 2017 and December 31, 2016 are summarized as follows: Loans (Dollars in thousands) 30-59 60-89 Greater Receivable > Days Past Days Past than 90 Total Past 90 Days and March 31, 2017 Due Due Days Due Current Total Loans Accruing Commercial and industrial $ 1,604 $ - $ 71 $ 1,675 $ 174,644 $ 176,319 $ - Commercial real estate: Commercial real estate 145 791 2,093 3,029 460,260 463,289 - Acquired with credit deterioration - - 58 58 730 788 58 Commercial real estate - construction 247 - 488 735 52,140 52,875 - Lease financing - - - - 358 358 - Residential mortgage: Residential mortgage 455 13 266 734 98,222 98,956 - Acquired with credit deterioration 34 - 193 227 105 332 - Home equity 266 - 65 331 38,207 38,538 - Consumer 9 - 9 2,756 2,765 - Total $ 2,751 $ 813 $ 3,234 $ 6,798 $ 827,422 $ 834,220 $ 58 Loans (Dollars in thousands) 30-59 60-89 Greater Receivable > Days Past Days Past than 90 Total Past 90 Days and December 31, 2016 Due Due Days Due Current Total Loans Accruing Commercial and industrial $ 164 $ 12 $ 4 $ 180 $ 172,338 $ 172,518 $ - Commercial real estate: Commercial real estate 475 - 1,004 1,479 444,203 445,682 - Acquired with credit deterioration - - 59 59 783 842 59 Commercial real estate - construction - 404 84 488 53,888 54,376 - Lease financing - - - - 425 425 - Residential mortgage: Residential mortgage 548 124 237 909 98,159 99,068 - Acquired with credit deterioration - - 238 238 151 389 - Home equity 33 13 125 171 37,437 37,608 - Consumer - - - - 3,016 3,016 - Total $ 1,220 $ 553 $ 1,751 $ 3,524 $ 810,400 $ 813,924 $ 59 |
Allowance and Recorded Investment in Financing Receivables | The following tables summarize the allowance and recorded investments in loans receivable. (Dollars in thousands) As of, and for the periods ended, March 31, 2017 Commercial and industrial Commercial real estate Commercial real estate - construction Lease financing Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, January 1, 2017 $ 1,580 $ 4,323 $ 144 $ 1 $ 541 $ 379 $ 3 $ 212 $ 7,183 Charge-offs (12 ) - - - (18 ) - (6 ) - (36 ) Recoveries 4 340 - - 1 - 3 - 348 Provisions 58 52 (43 ) - 8 (15 ) 3 62 125 Ending balance, March 31, 2017 1,630 4,715 101 1 532 364 3 274 7,620 Ending balance: individually evaluated for impairment 35 957 32 - 67 - - - 1,091 Ending balance: collectively evaluated for impairment $ 1,595 $ 3,758 $ 69 $ 1 $ 465 $ 364 $ 3 $ 274 $ 6,529 Loans receivables: Ending balance $ 176,319 $ 464,077 $ 52,875 $ 358 $ 99,288 $ 38,538 $ 2,765 $ - $ 834,220 Ending balance: individually evaluated for impairment 72 3,220 855 - 946 103 - - 5,196 Ending balance: acquired with credit deterioration - 788 - - 332 - - - 1,120 Ending balance: collectively evaluated for impairment $ 176,247 $ 460,069 $ 52,020 $ 358 $ 98,010 $ 38,435 $ 2,765 $ - $ 827,904 (Dollars in thousands) As of, and for the periods ended, March 31, 2016 Commercial and industrial Commercial real estate Commercial real estate - construction Lease financing Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, January 1, 2016 $ 1,393 $ 3,552 $ 153 $ 1 $ 534 $ 317 $ 12 $ 206 $ 6,168 Charge-offs - (96 ) - - - - (3 ) - (99 ) Recoveries 1 25 - - - - 4 - 30 Provisions 33 296 (34 ) - (18 ) (14 ) (4 ) 81 340 Ending balance, March 31, 2016 1,427 3,777 119 1 516 303 9 287 6,439 Ending balance: individually evaluated for impairment 40 428 - - - 3 - - 471 Ending balance: collectively evaluated for impairment $ 1,387 $ 3,349 $ 119 $ 1 $ 516 $ 300 $ 9 $ 287 $ 5,968 Loans receivables: Ending balance $ 162,418 $ 394,633 $ 47,733 $ 656 $ 104,014 $ 33,864 $ 3,134 $ - $ 746,452 Ending balance: individually evaluated for impairment 116 2,844 - - 1,332 86 - - 4,378 Ending balance: acquired with credit deterioration - 929 - - 361 - - - 1,290 Ending balance: collectively evaluated for impairment $ 162,302 $ 390,860 $ 47,733 $ 656 $ 102,321 $ 33,778 $ 3,134 $ - $ 740,784 (Dollars in thousands) December 31, 2016 Commercial and industrial Commercial real estate Commercial real estate - construction Lease financing Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Ending balance $ 1,580 $ 4,323 $ 144 $ 1 $ 541 $ 379 $ 3 $ 212 $ 7,183 Ending balance: individually evaluated for impairment 6 711 72 - 68 1 - - 858 Ending balance: collectively evaluated for impairment $ 1,574 $ 3,612 $ 72 $ 1 $ 473 $ 378 $ 3 $ 212 $ 6,325 Loans receivable: Ending balance $ 172,518 $ 446,524 $ 54,376 $ 425 $ 99,457 $ 37,608 $ 3,016 $ - $ 813,924 Ending balance: individually evaluated for impairment 60 3,246 860 - 916 140 - - 5,222 Ending balance: acquired with credit deterioration - 842 - - 389 - - - 1,231 Ending balance: collectively evaluated for impairment $ 172,458 $ 442,436 $ 53,516 $ 425 $ 98,152 $ 37,468 $ 3,016 $ - $ 807,471 |
Troubled Debt Restructurings | The recorded investments in troubled debt restructured loans at March 31, 2017 and December 31, 2016 are as follows: (Dollars in thousands) Pre-Modification Post-Modification March 31, 2017 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 40 $ 35 $ 1 Commercial real estate 3,506 3,243 2,515 Residential mortgage 759 757 629 $ 4,305 $ 4,035 $ 3,145 (Dollars in thousands) Pre-Modification Post-Modification December 31, 2016 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 40 $ 35 $ 5 Commercial real estate 4,569 4,031 2,871 Residential mortgage 759 757 639 $ 5,368 $ 4,823 $ 3,515 |
Schedule of Accretion of Purchased Impaired Loan | The following table provides activity for the accretable yield of acquired impaired loans for the three months ended March 31, 2017. (Dollars in thousands) Accretable yield, January 1, 2017 $ 67 Accretable yield amortized to interest income (10 ) Reclassification from nonaccretable difference (a) 23 Accretable yield, March 31, 2017 $ 80 (a) Reclassification from non-accretable difference represents an increase to the estimated cash flows to be collected on the underlying portfolio. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 segregated by hierarchy fair value levels. Fair value measurements at March 31, 2017 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: March 31, 2017 (Level 1) (Level 2) (Level 3) Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 43,639 $ - $ 43,639 $ - Mortgage-backed U.S. government agencies 25,078 - 25,078 - State and political subdivision obligations 48,632 - 48,632 - Corporate debt securities 1,105 1,105 Equity securities 1,071 1,071 - - Total $ 119,525 $ 1,071 $ 118,454 $ - Fair value measurements at December 31, 2016 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2016 (Level 1) (Level 2) (Level 3) Available-for-sale securities: U.S. Treasury and U.S. government agencies $ 47,012 $ 1,864 $ 45,148 $ - Mortgage-backed U.S. government agencies 25,619 - 25,619 - State and political subdivision obligations 58,838 - 58,838 - Corporate debt securities 1,100 - 1,100 Equity securities 1,056 1,056 - - Total $ 133,625 $ 2,920 $ 130,705 $ - |
Fair Value Measurements, Nonrecurring | The following tables illustrate the assets measured at fair value on a nonrecurring basis segregated by hierarchy fair value levels. Fair value measurements at March 31, 2017 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: March 31, 2017 (Level 1) (Level 2) (Level 3) Impaired Loans $ 2,224 $ - $ - $ 2,224 Foreclosed Assets Held for Sale 127 - - 127 Mortgage Servicing Rights 139 - - 139 Fair value measurements at December 31, 2016 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2016 (Level 1) (Level 2) (Level 3) Impaired Loans $ 2,404 $ - $ - $ 2,404 Foreclosed Assets Held for Sale 135 - - 135 Mortgage Servicing Rights 144 - - 144 |
Fair Value Inputs, Assets, Quantitative Information | The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Mid Penn has utilized Level 3 inputs to determine the fair value. (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements March 31, 2017 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 2,224 Appraisal of collateral (a) Appraisal adjustments (b) 0% - 72% 31% Foreclosed Assets Held for Sale 127 Appraisal of collateral (a), (c) Appraisal adjustments (b) 17% - 31% 26% Mortgage Servicing Rights 139 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 365% (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements December 31, 2016 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 2,404 Appraisal of collateral (a) Appraisal adjustments (b) 11% - 70% 30% Foreclosed Assets Held for Sale 135 Appraisal of collateral (a), (c) Appraisal adjustments (b) 26% - 31% 27% Mortgage Servicing Rights 144 Multiple of annual service fee Estimated prepayment speed based on rate and term 210% - 400% 365% (a) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable. (b) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal. ( c ) Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value, by Balance Sheet Grouping | The following table summarizes the carrying value and fair value of financial instruments at March 31, 2017 and December 31, 2016. (Dollars in thousands) March 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 33,107 $ 33,107 $ 45,973 $ 45,973 Available-for-sale investment securities 119,525 119,525 133,625 133,625 Held-to-maturity investment securities 49,654 49,507 - - Loans held for sale 2,035 2,035 1,959 1,959 Net loans and leases 826,600 843,814 806,741 824,293 Restricted investment in bank stocks 2,475 2,475 2,443 2,443 Accrued interest receivable 3,901 3,901 3,928 3,928 Mortgage servicing rights 139 139 144 144 Financial liabilities: Deposits $ 971,887 $ 972,196 $ 935,373 $ 935,075 Long-term debt 13,524 13,557 13,581 13,614 Subordinated debt 7,416 7,488 7,414 7,534 Accrued interest payable 621 621 515 515 Off-balance sheet financial instruments: Commitments to extend credit $ - $ - $ - $ - Financial standby letters of credit - - - - |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of March 31, 2017 and December 31, 2016. Carrying values approximate fair values for cash and cash equivalents, interest-bearing time balances with other financial institutions, loans held for sale, restricted investment in bank stocks, mortgage servicing rights, accrued interest receivable and payable, and short-term borrowings. Other than cash and cash equivalents, which are considered Level 1 Inputs and mortgage servicing rights, which are Level 3 inputs, these instruments are Level 2 Inputs. These tables exclude financial instruments for which the carrying amount approximates fair value, not previously disclosed. Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs March 31, 2017 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 49,654 $ 49,507 $ - $ 49,507 $ - Net loans and leases 826,600 843,814 - - 843,814 Financial instruments - liabilities Deposits $ 971,887 $ 972,196 $ - $ 972,196 $ - Long-term debt 13,524 13,557 - 13,557 - Fair Value Measurements Quoted Prices in Active Markets Significant (Dollars in thousands) for Identical Assets Significant Other Unobservable Carrying or Liabilities Observable Inputs Inputs December 31, 2016 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Net loans and leases $ 806,741 $ 824,293 $ - $ - $ 824,293 Financial instruments - liabilities Deposits $ 935,373 $ 935,075 $ - $ 935,075 $ - Long-term debt 13,581 13,614 - 13,614 - |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Costs | The components of net periodic benefit costs from these benefit plans are as follows: Three Months Ended March 31, (Dollars in thousands) Pension Benefits Other Benefits 2017 2016 2017 2016 Service cost $ 9 $ 9 $ 1 $ 1 Interest cost 11 12 5 6 Amortization (accretion) of prior service cost 3 (16 ) (6 ) (98 ) Net periodic benefit cost (benefit) $ 23 $ 5 $ - $ (91 ) |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Loss, Net of Taxes | The components of accumulated other comprehensive loss, net of taxes, are as follows: (Dollars in thousands) Unrealized Loss on Securities Defined Benefit Plans Accumulated Other Comprehensive Loss Balance - March 31, 2017 $ (2,545 ) $ 63 $ (2,482 ) Balance - December 31, 2016 $ (2,919 ) $ 66 $ (2,853 ) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic Earnings (Loss) Per Share | The computations of basic earnings per common share follow: (Dollars in thousands, except per share data) Three Months Ended March 31, 2017 2016 Net income available to common shareholders $ 1,994 $ 1,805 Weighted average common shares outstanding 4,233,308 4,226,731 Basic earnings per common share $ 0.47 $ 0.43 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized Cost | $ 123,382 | $ 138,048 |
Available-for-sale securities, Unrealized Gains | 64 | 142 |
Available-for-sale securities, Unrealized Losses | 3,921 | 4,565 |
Available for sale Securities, Fair Value | 119,525 | 133,625 |
Held-to-maturity securities, Amortized Cost | 49,654 | |
Held-to-maturity securities, Unrealized Gains | 11 | |
Held-to-maturity securities, Unrealized Losses | 158 | |
Held-to-maturity securities, Fair Value | 49,507 | 0 |
Available-for-sale securities and Held-to-maturity securities, Amortized Cost | 173,036 | |
Available-for-sale securities and Held-to-maturity securities, Unrealized Gains | 75 | |
Available-for-sale securities and Held-to-maturity securities, Unrealized Losses | 4,079 | |
Available-for-sale securities and Held-to-maturity securities, Fair Value | 169,032 | |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized Cost | 45,231 | 48,520 |
Available-for-sale securities, Unrealized Gains | 34 | |
Available-for-sale securities, Unrealized Losses | 1,592 | 1,542 |
Available for sale Securities, Fair Value | 43,639 | 47,012 |
Held-to-maturity securities, Amortized Cost | 10,984 | |
Held-to-maturity securities, Unrealized Losses | 24 | |
Held-to-maturity securities, Fair Value | 10,960 | |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized Cost | 25,590 | 26,181 |
Available-for-sale securities, Unrealized Gains | 9 | 17 |
Available-for-sale securities, Unrealized Losses | 521 | 579 |
Available for sale Securities, Fair Value | 25,078 | 25,619 |
Held-to-maturity securities, Amortized Cost | 35,507 | |
Held-to-maturity securities, Unrealized Losses | 131 | |
Held-to-maturity securities, Fair Value | 35,376 | |
State and political subdivision obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized Cost | 50,293 | 61,079 |
Available-for-sale securities, Unrealized Gains | 50 | 91 |
Available-for-sale securities, Unrealized Losses | 1,711 | 2,332 |
Available for sale Securities, Fair Value | 48,632 | 58,838 |
Held-to-maturity securities, Amortized Cost | 3,163 | |
Held-to-maturity securities, Unrealized Gains | 11 | |
Held-to-maturity securities, Unrealized Losses | 3 | |
Held-to-maturity securities, Fair Value | 3,171 | |
Corporate debt securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized Cost | 1,100 | 1,100 |
Available-for-sale securities, Unrealized Gains | 5 | |
Available for sale Securities, Fair Value | 1,105 | 1,100 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Amortized Cost | 1,168 | 1,168 |
Available-for-sale securities, Unrealized Losses | 97 | 112 |
Available for sale Securities, Fair Value | $ 1,071 | $ 1,056 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)security | Mar. 31, 2016security | Dec. 31, 2016USD ($)security | |
Schedule of Investments [Line Items] | |||
Available-for-sale Securities Pledged as Collateral | $ | $ 165,719,000 | $ 131,469,000 | |
Available-for-sale Securities, Gross Realized Gains | $ | 123,000 | ||
Available-for-sale Securities, Gross Realized Losses | $ | $ 115,000 | ||
Number of securities sold | 0 | ||
Available-for-sale and held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 152 | ||
Available-for-sale and held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ | $ 4,079,000 | ||
Available-for-sale and held-to-maturity, Securities in Unrealized Loss Positions, Impairment Percentage | 2.62% | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ | $ 3,921,000 | $ 4,565,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Impairment Percentage | 3.52% | 3.82% | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 128 | 151 | |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 24 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ | $ 158,000 | ||
Held To Maturity Securities In Unrealized Loss Positions, Impairment Percentage | 0.36% | ||
Debt Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale and held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 150 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 126 | 149 | |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 24 | ||
Equity Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Available-for-sale and held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ | $ 97,000 | $ 112,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | 2 |
Investment Securities (Schedule
Investment Securities (Schedule of Fair Value and Unrealized Loss on Investments in a Continuous Unrealized Loss Position) (Details) | Mar. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 126 | 149 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 110,363,000 | $ 118,601,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 3,824,000 | $ 4,453,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 2 | 2 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 1,071,000 | $ 1,056,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 97,000 | $ 112,000 |
Available-for-sale securities, Total: Number of Securities | security | 128 | 151 |
Available-for-sale securities, Total: Fair Value | $ 111,434,000 | $ 119,657,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 3,921,000 | $ 4,565,000 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 24 | |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 44,055,000 | |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 158,000 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 0 | |
Held-to-maturity securities, Total: Number of Securities | security | 24 | |
Held-to-maturity securities, Total: Fair Value | $ 44,055,000 | |
Held-to-maturity securities, Total: Unrealized Losses | $ 158,000 | |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 150 | |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Fair Value | $ 154,418,000 | |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 3,982,000 | |
Available-for-sale securities and Held-to-maturity securities,, 12 Months or More: Number of Securities | security | 2 | |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Fair Value | $ 1,071,000 | |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 97,000 | |
Available-for-sale securities and Held-to-maturity securities, Total: Number of Securities | security | 152 | |
Available-for-sale securities and Held-to-maturity securities, Total: Fair Value | $ 155,489,000 | |
Available-for-sale securities and Held-to-maturity securities, Total: Unrealized Losses | $ 4,079,000 | |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 23 | 23 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 43,639,000 | $ 43,698,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 1,592,000 | $ 1,542,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Available-for-sale securities, Total: Number of Securities | security | 23 | 23 |
Available-for-sale securities, Total: Fair Value | $ 43,639,000 | $ 43,698,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 1,592,000 | $ 1,542,000 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 4 | |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 10,960,000 | |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 24,000 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 0 | |
Held-to-maturity securities, Total: Number of Securities | security | 4 | |
Held-to-maturity securities, Total: Fair Value | $ 10,960,000 | |
Held-to-maturity securities, Total: Unrealized Losses | $ 24,000 | |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 18 | 18 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 24,573,000 | $ 24,321,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 521,000 | $ 579,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Available-for-sale securities, Total: Number of Securities | security | 18 | 18 |
Available-for-sale securities, Total: Fair Value | $ 24,573,000 | $ 24,321,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 521,000 | $ 579,000 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 19 | |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 32,780,000 | |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 131,000 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 0 | |
Held-to-maturity securities, Total: Number of Securities | security | 19 | |
Held-to-maturity securities, Total: Fair Value | $ 32,780,000 | |
Held-to-maturity securities, Total: Unrealized Losses | $ 131,000 | |
State and political subdivision obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 85 | 108 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 42,151,000 | $ 50,582,000 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 1,711,000 | $ 2,332,000 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Available-for-sale securities, Total: Number of Securities | security | 85 | 108 |
Available-for-sale securities, Total: Fair Value | $ 42,151,000 | $ 50,582,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 1,711,000 | $ 2,332,000 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 1 | |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 315,000 | |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 3,000 | |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 0 | |
Held-to-maturity securities, Total: Number of Securities | security | 1 | |
Held-to-maturity securities, Total: Fair Value | $ 315,000 | |
Held-to-maturity securities, Total: Unrealized Losses | $ 3,000 | |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 0 | 0 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 2 | 2 |
Available-for-sale securities, 12 Months or More: Fair Value | $ 1,071,000 | $ 1,056,000 |
Available-for-sale securities, 12 Months or More: Unrealized Losses | $ 97,000 | $ 112,000 |
Available-for-sale securities, Total: Number of Securities | security | 2 | 2 |
Available-for-sale securities, Total: Fair Value | $ 1,071,000 | $ 1,056,000 |
Available-for-sale securities, Total: Unrealized Losses | $ 97,000 | $ 112,000 |
Available-for-sale securities and Held-to-maturity securities, Total: Number of Securities | security | 2 |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | ||
Available for sale Securities, Amortized Cost, Due in 1 year or less | $ 787 | |
Available for sale Securities, Amortized Cost, Due after 1 year but within 5 years | 16,946 | |
Available for sale Securities, Amortized Cost, Due after 5 years but within 10 years | 57,087 | |
Available for sale Securities, Amortized Cost, Due after 10 years | 21,804 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 96,624 | |
Equity Securities, Amortized Cost | 1,168 | |
Available-for-sale securities, Amortized Cost | 123,382 | $ 138,048 |
Available for sale Securities, Fair Value, Due in 1 year or less | 795 | |
Available for sale Securities, Fair Value, Due after 1 year but within 5 years | 16,709 | |
Available for sale Securities, Fair Value, Due after 5 years but within 10 years | 55,150 | |
Available for sale Securities, Fair Value, Due after 10 years | 20,722 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value, Total | 93,376 | |
Equity Securities, Fair Value | 1,071 | |
Available for sale Securities, Fair Value | 119,525 | 133,625 |
Held-to-maturity, Due after 1 year through 5 years, Amortized Cost | 10,984 | |
Held-to-maturity, Due after 5 years through 10 years, Amortized Cost | 3,163 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis | 14,147 | |
Held-to-maturity securities, Amortized Cost | 49,654 | |
Held-to-maturity, Due after 1 year through 5, Fair Value | 10,960 | |
Held-to-maturity, Due after 5 years through 10 years, Fair Value | 3,171 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value | 14,131 | |
Held-to-maturity, Fair Value | 49,507 | $ 0 |
Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available for sale Securities without a Single Maturity Date, Amortized Cost | 25,590 | |
Available for sale securities without a Single Maturity Date, Fair Value | 25,078 | |
Held-to-maturity without Single Maturity Date, Amortized Cost | 35,507 | |
Held-to-maturity without Single Maturity Date, Fair Value | $ 35,376 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan and Lease Losses (Narrative) (Details) | 3 Months Ended | |||
Mar. 31, 2017USD ($)Loan | Mar. 31, 2016USD ($)Loan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Contractual payment of principal or interest past due period for discontinuing accrual of interest | 90 days | |||
Financing Receivable, Allowance for Credit Losses | $ 7,620,000 | $ 6,439,000 | $ 7,183,000 | $ 6,168,000 |
Non-residential loans and lease charged off period | 120 days | |||
Financing Receivable Deferred Fees And Costs | $ 274,000 | 196,000 | ||
Financing Receivable, Modifications, Recorded Investment | 3,145,000 | 3,515,000 | ||
Charge-offs associated with troubled debt restructured loans | $ 0 | $ 0 | ||
Number of troubled debt restructured loans | Loan | 0 | 0 | ||
Number of additional troubled debt restructured loans | Loan | 0 | 0 | ||
Other Real Estate | $ 27,000 | 57,000 | ||
Number of consumer mortgage loans foreclosure proceedings in process | Loan | 2 | |||
Loans for which formal foreclosure proceedings are in process | $ 60,000 | |||
Accruing [Member] | One Loan [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Modifications, Recorded Investment | 508,000 | |||
Accruing [Member] | Five Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Modifications, Recorded Investment | 877,000 | |||
Nonaccruing [Member] | Ten Loans With Four Relationships [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Modifications, Recorded Investment | 2,582,000 | 2,638,000 | ||
Nonaccruing [Member] | Two Large Relationships [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Modifications, Recorded Investment | $ 2,146,000 | 2,170,000 | ||
Residential Mortgage [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Maximum loan maturity period | 30 years | |||
Residential Mortgage [Member] | Residential Portfolio [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | $ 532,000 | $ 516,000 | 541,000 | 534,000 |
Financing Receivable, Modifications, Recorded Investment | 629,000 | 639,000 | ||
Residential Mortgage [Member] | Accruing [Member] | Four Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Modifications, Recorded Investment | $ 563,000 | |||
Residential Mortgage [Member] | Accruing [Member] | Four Unrelated Borrowers [Member] | Residential Portfolio [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Modifications, Recorded Investment | 571,000 | |||
Minimum [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loan-to-value ratio | 100.00% | |||
Commercial and Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Maximum term on non-mortgage lines of credit | 1 year | |||
Commercial and Industrial [Member] | Commercial Portfolio [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | $ 1,630,000 | 1,427,000 | 1,580,000 | 1,393,000 |
Financing Receivable, Modifications, Recorded Investment | $ 1,000 | 5,000 | ||
Commercial and Industrial [Member] | LTV Less than 80 Percent [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loan-to-value ratio | 80.00% | |||
Private Mortgage [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loan-to-value ratio | 85.00% | |||
Home Equity [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Maximum loan maturity period | 20 years | |||
Percentage of appraised Value of property securing loan | 85.00% | |||
Mortgage Lines Of Credit Period | 5 years | |||
Financing Receivable, Allowance for Credit Losses | $ 364,000 | 303,000 | 379,000 | 317,000 |
Unfunded Lending Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 127,000 | 120,000 | ||
Commercial Real Estate [Member] | Commercial Portfolio [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses | 4,715,000 | $ 3,777,000 | 4,323,000 | $ 3,552,000 |
Financing Receivable, Modifications, Recorded Investment | $ 2,515,000 | 2,871,000 | ||
Commercial Real Estate [Member] | Accruing [Member] | Other Borrower [Member] | Commercial Portfolio [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Financing Receivable, Modifications, Recorded Investment | $ 306,000 |
Loans and Allowance for Loan 33
Loans and Allowance for Loan and Lease Losses (Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 834,220 | $ 813,924 | $ 746,452 |
Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 38,538 | 37,608 | 33,864 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 820,200 | 799,937 | |
Pass [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 38,227 | 37,242 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 2,826 | 3,071 | |
Special Mention [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 132 | 142 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 11,194 | 10,916 | |
Substandard [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 179 | 224 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 176,319 | 172,518 | 162,418 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 464,077 | 446,524 | 394,633 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 52,875 | 54,376 | 47,733 |
Commercial Portfolio [Member] | Pass [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 174,898 | 170,780 | |
Commercial Portfolio [Member] | Pass [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 454,710 | 437,592 | |
Commercial Portfolio [Member] | Pass [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 51,393 | 52,888 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 209 | 937 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 2,184 | 1,683 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 197 | 202 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,212 | 801 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 7,183 | 7,249 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,285 | 1,286 | |
Finance Leases Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 358 | 425 | 656 |
Finance Leases Portfolio [Member] | Pass [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 358 | 425 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 99,288 | 99,457 | 104,014 |
Residential Portfolio [Member] | Pass [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 97,849 | 97,994 | |
Residential Portfolio [Member] | Special Mention [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 104 | 107 | |
Residential Portfolio [Member] | Substandard [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 1,335 | 1,356 | |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | 2,765 | 3,016 | $ 3,134 |
Consumer Portfolio [Member] | Pass [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and Leases Receivable, Gross, Carrying Amount | $ 2,765 | $ 3,016 |
Loans and Allowance for Loan 34
Loans and Allowance for Loan and Lease Losses (Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | $ 103 | $ 111 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 145 | 129 |
Impaired Loans with Allowance: Recorded Investment | 29 | |
Impaired Loans with Allowance: Unpaid Principal Balance | 49 | |
Impaired Loans with Allowance: Related Allowance | 1 | |
Impaired Loans: Total Recorded Investment | 103 | 140 |
Impaired Loans: Total Unpaid Principal Balance | 145 | 178 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1 | 4 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 9 | 9 |
Impaired Loans with Allowance: Recorded Investment | 70 | 56 |
Impaired Loans with Allowance: Unpaid Principal Balance | 83 | 62 |
Impaired Loans with Allowance: Related Allowance | 35 | 6 |
Impaired Loans: Total Recorded Investment | 71 | 60 |
Impaired Loans: Total Unpaid Principal Balance | 92 | 71 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 387 | 726 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 884 | 1,792 |
Impaired Loans with Allowance: Recorded Investment | 2,833 | 2,520 |
Impaired Loans with Allowance: Unpaid Principal Balance | 2,993 | 2,646 |
Impaired Loans with Allowance: Related Allowance | 957 | 711 |
Impaired Loans: Total Recorded Investment | 4,008 | 4,088 |
Impaired Loans: Total Unpaid Principal Balance | 4,665 | 5,280 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 788 | 842 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 788 | 842 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 615 | 618 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 618 | 618 |
Impaired Loans with Allowance: Recorded Investment | 240 | 242 |
Impaired Loans with Allowance: Unpaid Principal Balance | 242 | 242 |
Impaired Loans with Allowance: Related Allowance | 32 | 72 |
Impaired Loans: Total Recorded Investment | 855 | 860 |
Impaired Loans: Total Unpaid Principal Balance | 860 | 860 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 880 | 848 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 909 | 882 |
Impaired Loans with Allowance: Recorded Investment | 67 | 68 |
Impaired Loans with Allowance: Unpaid Principal Balance | 68 | 68 |
Impaired Loans with Allowance: Related Allowance | 67 | 68 |
Impaired Loans: Total Recorded Investment | 1,279 | 1,305 |
Impaired Loans: Total Unpaid Principal Balance | 1,309 | 1,339 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 332 | 389 |
Impaired Loans with No Allowance: Unpaid Principal Balance | $ 332 | $ 389 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan and Lease Losses (Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | $ 122 | $ 71 |
Impaired Loans with No Allowance: Interest Income Recognized | 2 | |
Impaired Loans with Allowance: Average Recorded Investment | 18 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 122 | 89 |
Impaired Financing Receivable, Interest Income Recognized, Total | 2 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 2 | 13 |
Impaired Loans with Allowance: Average Recorded Investment | 35 | 109 |
Impaired Financing Receivable, Average Recorded Investment, Total | 37 | 122 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 403 | 1,016 |
Impaired Loans with No Allowance: Interest Income Recognized | 279 | |
Impaired Loans with Allowance: Average Recorded Investment | 2,676 | 1,845 |
Impaired Financing Receivable, Average Recorded Investment, Total | 3,910 | 3,786 |
Impaired Financing Receivable, Interest Income Recognized, Total | 279 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 831 | 925 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 617 | |
Impaired Loans with Allowance: Average Recorded Investment | 241 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 858 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | 864 | 1,325 |
Impaired Loans with No Allowance: Interest Income Recognized | 11 | 2 |
Impaired Loans with Allowance: Average Recorded Investment | 67 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 1,304 | 1,697 |
Impaired Financing Receivable, Interest Income Recognized, Total | 11 | 6 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Average Recorded Investment | $ 373 | 372 |
Impaired Loans with No Allowance: Interest Income Recognized | $ 4 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan and Lease Losses (Nonaccrual Loans By Classes Of The Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 4,919 | $ 4,658 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 103 | 140 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 71 | 4 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 3,226 | 2,939 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 855 | 860 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 664 | $ 715 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan and Lease Losses (Loan Portfolio Summarized By The Past Due Status) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 6,798 | $ 3,524 | |
Financing Receivable, Recorded Investment, Current | 827,422 | 810,400 | |
Total Loans | 834,220 | 813,924 | $ 746,452 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 58 | 59 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,120 | 1,231 | 1,290 |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,751 | 1,220 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 813 | 553 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,234 | 1,751 | |
Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 331 | 171 | |
Financing Receivable, Recorded Investment, Current | 38,207 | 37,437 | |
Total Loans | 38,538 | 37,608 | 33,864 |
Home Equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 266 | 33 | |
Home Equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 13 | ||
Home Equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 65 | 125 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,675 | 180 | |
Financing Receivable, Recorded Investment, Current | 174,644 | 172,338 | |
Total Loans | 176,319 | 172,518 | 162,418 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,604 | 164 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 12 | ||
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 71 | 4 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 464,077 | 446,524 | 394,633 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,029 | 1,479 | |
Financing Receivable, Recorded Investment, Current | 460,260 | 444,203 | |
Total Loans | 463,289 | 445,682 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 58 | 59 | |
Financing Receivable, Recorded Investment, Current | 730 | 783 | |
Total Loans | 788 | 842 | 929 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 58 | 59 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 145 | 475 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 791 | ||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,093 | 1,004 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 58 | 59 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 735 | 488 | |
Financing Receivable, Recorded Investment, Current | 52,140 | 53,888 | |
Total Loans | 52,875 | 54,376 | 47,733 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 247 | ||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 404 | ||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 488 | 84 | |
Finance Leases Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment, Current | 358 | 425 | |
Total Loans | 358 | 425 | 656 |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 99,288 | 99,457 | 104,014 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 734 | 909 | |
Financing Receivable, Recorded Investment, Current | 98,222 | 98,159 | |
Total Loans | 98,956 | 99,068 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 227 | 238 | |
Financing Receivable, Recorded Investment, Current | 105 | 151 | |
Total Loans | 332 | 389 | 361 |
Residential Portfolio [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 455 | 548 | |
Residential Portfolio [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 34 | ||
Residential Portfolio [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 13 | 124 | |
Residential Portfolio [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 266 | 237 | |
Residential Portfolio [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 193 | 238 | |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 9 | ||
Financing Receivable, Recorded Investment, Current | 2,756 | 3,016 | |
Total Loans | 2,765 | $ 3,016 | $ 3,134 |
Consumer Portfolio [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 9 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan and Lease Losses (Allowance And Recorded Investment In Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | $ 7,183 | $ 6,168 | |
Charge-offs | (36) | (99) | |
Recoveries | 348 | 30 | |
Provisions | 125 | 340 | |
Allowance for Loan Losses, Ending Balance | 7,620 | 6,439 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 1,091 | 471 | $ 858 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 6,529 | 5,968 | 6,325 |
Loans receivables, Ending Balance | 834,220 | 746,452 | 813,924 |
Loans receivables: Ending balance: individually evaluated for impairment | 5,196 | 4,378 | 5,222 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 827,904 | 740,784 | 807,471 |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans receivables, Ending Balance | 1,120 | 1,290 | 1,231 |
Home Equity [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 379 | 317 | |
Provisions | (15) | (14) | |
Allowance for Loan Losses, Ending Balance | 364 | 303 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 3 | 1 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 364 | 300 | 378 |
Loans receivables, Ending Balance | 38,538 | 33,864 | 37,608 |
Loans receivables: Ending balance: individually evaluated for impairment | 103 | 86 | 140 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 38,435 | 33,778 | 37,468 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 1,580 | 1,393 | |
Charge-offs | (12) | ||
Recoveries | 4 | 1 | |
Provisions | 58 | 33 | |
Allowance for Loan Losses, Ending Balance | 1,630 | 1,427 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 35 | 40 | 6 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1,595 | 1,387 | 1,574 |
Loans receivables, Ending Balance | 176,319 | 162,418 | 172,518 |
Loans receivables: Ending balance: individually evaluated for impairment | 72 | 116 | 60 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 176,247 | 162,302 | 172,458 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 4,323 | 3,552 | |
Charge-offs | (96) | ||
Recoveries | 340 | 25 | |
Provisions | 52 | 296 | |
Allowance for Loan Losses, Ending Balance | 4,715 | 3,777 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 957 | 428 | 711 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 3,758 | 3,349 | 3,612 |
Loans receivables, Ending Balance | 464,077 | 394,633 | 446,524 |
Loans receivables: Ending balance: individually evaluated for impairment | 3,220 | 2,844 | 3,246 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 460,069 | 390,860 | 442,436 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans receivables, Ending Balance | 788 | 929 | 842 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 144 | 153 | |
Provisions | (43) | (34) | |
Allowance for Loan Losses, Ending Balance | 101 | 119 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 32 | 72 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 69 | 119 | 72 |
Loans receivables, Ending Balance | 52,875 | 47,733 | 54,376 |
Loans receivables: Ending balance: individually evaluated for impairment | 855 | 860 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 52,020 | 47,733 | 53,516 |
Finance Leases Portfolio [Member] | Lease Financing [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 1 | 1 | |
Allowance for Loan Losses, Ending Balance | 1 | 1 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 1 | 1 | 1 |
Loans receivables, Ending Balance | 358 | 656 | 425 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 358 | 656 | 425 |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 541 | 534 | |
Charge-offs | (18) | ||
Recoveries | 1 | ||
Provisions | 8 | (18) | |
Allowance for Loan Losses, Ending Balance | 532 | 516 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 67 | 68 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 465 | 516 | 473 |
Loans receivables, Ending Balance | 99,288 | 104,014 | 99,457 |
Loans receivables: Ending balance: individually evaluated for impairment | 946 | 1,332 | 916 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 98,010 | 102,321 | 98,152 |
Residential Portfolio [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans receivables, Ending Balance | 332 | 361 | 389 |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 3 | 12 | |
Charge-offs | (6) | (3) | |
Recoveries | 3 | 4 | |
Provisions | 3 | (4) | |
Allowance for Loan Losses, Ending Balance | 3 | 9 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 3 | 9 | 3 |
Loans receivables, Ending Balance | 2,765 | 3,134 | 3,016 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 2,765 | 3,134 | 3,016 |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan and lease losses, Beginning Balance | 212 | 206 | |
Provisions | 62 | 81 | |
Allowance for Loan Losses, Ending Balance | 274 | 287 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | $ 274 | $ 287 | $ 212 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 4,305,000 | $ 5,368,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 4,035,000 | 4,823,000 |
Financing Receivable, Modifications, Recorded Investment | 3,145,000 | 3,515,000 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 40,000 | 40,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 35,000 | 35,000 |
Financing Receivable, Modifications, Recorded Investment | 1,000 | 5,000 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 3,506,000 | 4,569,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 3,243,000 | 4,031,000 |
Financing Receivable, Modifications, Recorded Investment | 2,515,000 | 2,871,000 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 759,000 | 759,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 757,000 | 757,000 |
Financing Receivable, Modifications, Recorded Investment | $ 629,000 | $ 639,000 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan and Lease Losses (Schedule of Accretion of Purchased Impaired Loan) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($) | ||
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | ||
Accretable yield, beginning balance | $ 67 | |
Accretable yield amortized to interest income | (10) | |
Reclassification from nonaccretable difference | 23 | [1] |
Accretable yield, ending balance | $ 80 | |
[1] | Reclassification from non-accretable difference represents an increase to the estimated cash flows to be collected on the underlying portfolio. |
Fair Value Measurement (Assets
Fair Value Measurement (Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 119,525 | $ 133,625 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,071 | 2,920 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 118,454 | 130,705 |
U.S. Treasury and U.S. government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 43,639 | 47,012 |
U.S. Treasury and U.S. government agencies [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,864 | |
U.S. Treasury and U.S. government agencies [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 43,639 | 45,148 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 25,078 | 25,619 |
Mortgage-backed U.S. Government Agencies [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 25,078 | 25,619 |
State and political subdivision obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 48,632 | 58,838 |
State and political subdivision obligations [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 48,632 | 58,838 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,105 | 1,100 |
Corporate debt securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,105 | 1,100 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,071 | 1,056 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 1,071 | $ 1,056 |
Fair Value Measurement (Fair Va
Fair Value Measurement (Fair Value Measurements, Nonrecurring) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,224 | $ 2,404 |
Impaired Loan [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 2,224 | 2,404 |
Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 127 | 135 |
Foreclosed Assets Held for Sale [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 127 | 135 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 139 | 144 |
Mortgage Servicing Rights [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 139 | $ 144 |
Fair Value Measurement (Fair 43
Fair Value Measurement (Fair Value Inputs, Assets, Quantitative Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Impaired Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,224 | $ 2,404 |
Fair Value Measurements, Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Fair Value Disclosure, Unobservable Input Range | Appraisal adjustments | Appraisal adjustments |
Impaired Loan [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 2,224 | $ 2,404 |
Foreclosed Assets Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 127 | $ 135 |
Fair Value Measurements, Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Fair Value Disclosure, Unobservable Input Range | Appraisal adjustments | Appraisal adjustments |
Foreclosed Assets Held for Sale [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 127 | $ 135 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 139 | $ 144 |
Fair Value Measurements, Valuation Techniques | Multiple of annual service fee | Multiple of annual service fee |
Fair Value Disclosure, Unobservable Input Range | Estimated prepayment speed based on rate and term | Estimated prepayment speed based on rate and term |
Mortgage Servicing Rights [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 139 | $ 144 |
Minimum [Member] | Appraisal of Collateral [Member] | Impaired Loan [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 0.00% | 11.00% |
Minimum [Member] | Appraisal of Collateral [Member] | Foreclosed Assets Held for Sale [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 17.00% | 26.00% |
Minimum [Member] | Multiple of Annual Service [Member] | Mortgage Servicing Rights [Member] | Unobservable Input Estimated Prepayment Speed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Prepayment Rate | 210.00% | 210.00% |
Maximum [Member] | Appraisal of Collateral [Member] | Impaired Loan [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 72.00% | 70.00% |
Maximum [Member] | Appraisal of Collateral [Member] | Foreclosed Assets Held for Sale [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 31.00% | 31.00% |
Maximum [Member] | Multiple of Annual Service [Member] | Mortgage Servicing Rights [Member] | Unobservable Input Estimated Prepayment Speed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Prepayment Rate | 400.00% | 400.00% |
Weighted Average [Member] | Appraisal of Collateral [Member] | Impaired Loan [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 31.00% | 30.00% |
Weighted Average [Member] | Appraisal of Collateral [Member] | Foreclosed Assets Held for Sale [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 26.00% | 27.00% |
Weighted Average [Member] | Multiple of Annual Service [Member] | Mortgage Servicing Rights [Member] | Unobservable Input Estimated Prepayment Speed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Prepayment Rate | 365.00% | 365.00% |
Fair Value Measurement (Fair 44
Fair Value Measurement (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale investment securities | $ 119,525 | $ 133,625 |
Held-to-maturity investment securities | 49,507 | 0 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 33,107 | 45,973 |
Available-for-sale investment securities | 119,525 | 133,625 |
Held-to-maturity investment securities | 49,654 | |
Loans held for sale | 2,035 | 1,959 |
Net loans and leases | 826,600 | 806,741 |
Restricted investment in bank stocks | 2,475 | 2,443 |
Accrued interest receivable | 3,901 | 3,928 |
Mortgage servicing rights | 139 | 144 |
Deposits | 971,887 | 935,373 |
Long-term debt | 13,524 | 13,581 |
Subordinated debt | 7,416 | 7,414 |
Accrued interest payable | 621 | 515 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 33,107 | 45,973 |
Available-for-sale investment securities | 119,525 | 133,625 |
Held-to-maturity investment securities | 49,507 | |
Loans held for sale | 2,035 | 1,959 |
Net loans and leases | 843,814 | 824,293 |
Restricted investment in bank stocks | 2,475 | 2,443 |
Accrued interest receivable | 3,901 | 3,928 |
Mortgage servicing rights | 139 | 144 |
Deposits | 972,196 | 935,075 |
Long-term debt | 13,557 | 13,614 |
Subordinated debt | 7,488 | 7,534 |
Accrued interest payable | $ 621 | $ 515 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity investment securities | $ 49,507 | $ 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity investment securities | 49,507 | |
Deposits | 972,196 | 935,075 |
Long-term debt | 13,557 | 13,614 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans and leases | 843,814 | 824,293 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity investment securities | 49,654 | |
Net loans and leases | 826,600 | 806,741 |
Deposits | 971,887 | 935,373 |
Long-term debt | 13,524 | 13,581 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity investment securities | 49,507 | |
Net loans and leases | 843,814 | 824,293 |
Deposits | 972,196 | 935,075 |
Long-term debt | $ 13,557 | $ 13,614 |
Guarantees (Narrative) (Details
Guarantees (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Financial Standby Letters of Credit [Member] | ||
Guarantee Obligations [Line Items] | ||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $ 19,231,000 | $ 14,000,000 |
Subordinated Debt (Narrative) (
Subordinated Debt (Narrative) (Details) - Notes Due 2025 [Member] - Subordinated Debt [Member] - USD ($) | Dec. 09, 2015 | Mar. 31, 2017 | Dec. 31, 2016 |
Subordinated debt issuance | $ 7,500,000 | ||
Debt instrument, interest rate, effective percentage | 5.15% | ||
Debt Instrument, Description of Variable Rate Basis | Notes bear interest at a rate of 5.15% per year for the first five years and then float at the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no time be less than 4.0%. | ||
Debt Instrument, Payment Terms | Interest will be payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2016. | ||
Debt instrument, maturity date | Dec. 9, 2025 | ||
Debt Instrument, Redemption, Description | The Notes will mature on December 9, 2025 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 9, 2020, and prior to December 9, 2025. Additionally, Mid Penn may redeem the Notes in whole at any time, or in part from time to time, upon at least 30 days’ notice if: (i) a change or prospective change in law occurs that could prevent Mid Penn from deducting interest payable on the Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) Mid Penn becomes required to register as an investment company under the Investment Company Act of 1940, as amended, in each case at 100% of the principal amount of the subordinated notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. | ||
Unamortized debt issuance cost | $ 84,000 | $ 86,000 | |
WSJ Prime Rate [Member] | |||
Debt instrument, interest rate, effective percentage | 4.00% | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Defined Benefit Plans (Net Peri
Defined Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 9 | $ 9 |
Interest Cost | 11 | 12 |
Amortization (accretion) of prior service cost | 3 | (16) |
Net periodic benefit cost (benefit) | 23 | 5 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 1 | 1 |
Interest Cost | 5 | 6 |
Amortization (accretion) of prior service cost | $ (6) | (98) |
Net periodic benefit cost (benefit) | $ (91) |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss, Net of Taxes) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Unrealized Loss on Securities | $ (2,545) | $ (2,919) |
Defined Benefit Plans | 63 | 66 |
Accumulated Other Comprehensive Loss | $ (2,482) | $ (2,853) |
Common Stock (Details)
Common Stock (Details) - 2014 Restricted Stock Plan [Member] - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jun. 25, 2014 | |
Class of Stock [Line Items] | |||
Shares authorized per plan | 100,000 | ||
Shares granted | 16,045 | ||
Allocated share-based compensation expense | $ 19,000 | $ 8,000 | |
Restricted shares vested during period | 2,990 | ||
Granted shares unvested | 13,055 |
Earnings per Common Share (Basi
Earnings per Common Share (Basic Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 1,994 | $ 1,805 |
Weighted average common shares outstanding | 4,233,308 | 4,226,731 |
Basic earnings per common share | $ 0.47 | $ 0.43 |
Earnings per Common Share (Ba52
Earnings per Common Share (Basic Earnings (Loss) Per Share) (Narrative) (Details) - shares | Mar. 31, 2017 | Mar. 31, 2016 |
Earnings Per Share [Abstract] | ||
Class of warrant or right, outstanding | 0 | 0 |
Recent Accounting Pronounceme53
Recent Accounting Pronouncements (Narrative) (Details) | Mar. 31, 2017USD ($) |
Accounting Changes And Error Corrections [Abstract] | |
Equity investments (excluding restricted investments in bank stocks) | $ 1,171,000 |
Agreement and Plan of Merger (N
Agreement and Plan of Merger (Narrative) (Details) - Scottdale Bank and Trust Company [Member] | Mar. 29, 2017$ / shares |
Business Acquisition [Line Items] | |
Per share price | $ 1,166 |
Volume-weighted average price, trading period | 10 days |
Period prior to closing of merger for calculating Average Price | 5 days |
Percentage of outstanding shares of acquiree's common stock to be converted into right to receive shares of acquirer's common stock upon merger | 90.00% |
Percentage of outstanding shares of acquiree's common stock to be converted into right to receive shares of acquirer's common stock in event that shareholders perfecting dissenters' rights upon merger | 85.00% |
Percentage of outstanding shares of acquiree's common stock that perfect shareholders' dissenters rights | 15.00% |
Minimum [Member] | |
Business Acquisition [Line Items] | |
Merger agreement exchange ratio | 38.88% |
Maximum [Member] | |
Business Acquisition [Line Items] | |
Merger agreement exchange ratio | 44.86% |
Percentage of outstanding shares of acquiree's common stock that perfect shareholders' dissenters rights | 15.00% |