Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Trading Symbol | MPB | |
Entity Registrant Name | MID PENN BANCORP, INC. | |
Entity Central Index Key | 0000879635 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 15,878,193 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-13677 | |
Entity Tax Identification Number | 25-1666413 | |
Entity Address, Address Line One | 2407 Park Drive | |
Entity Address, City or Town | Harrisburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 17110 | |
City Area Code | 1.866 | |
Local Phone Number | 642.7736 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | PA | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 64,440,000 | $ 41,100,000 |
Interest-bearing balances with other financial institutions | 4,909,000 | 146,031,000 |
Federal funds sold | 167,437,000 | 726,621,000 |
Total cash and cash equivalents | 236,786,000 | 913,752,000 |
Investment securities held to maturity, at amortized cost (fair value $365,288 and $330,626) | 399,032,000 | 329,257,000 |
Investment securities available for sale, at fair value | 218,698,000 | 62,862,000 |
Equity securities available for sale, at fair value | 454,000 | 500,000 |
Loans held for sale, at fair value | 9,574,000 | 11,514,000 |
Loans and leases, net of unearned interest | 3,180,033,000 | 3,104,396,000 |
Less: Allowance for loan and lease losses | (16,876,000) | (14,597,000) |
Net loans and leases | 3,163,157,000 | 3,089,799,000 |
Bank premises and equipment, net | 33,732,000 | 33,232,000 |
Bank premises and equipment held for sale | 2,574,000 | 3,907,000 |
Operating lease right of use asset | 8,326,000 | 9,055,000 |
Finance lease right of use asset | 2,997,000 | 3,087,000 |
Cash surrender value of life insurance | 50,169,000 | 49,661,000 |
Restricted investment in bank stocks | 4,234,000 | 9,134,000 |
Accrued interest receivable | 12,902,000 | 11,328,000 |
Deferred income taxes | 13,780,000 | 10,779,000 |
Goodwill | 113,835,000 | 113,835,000 |
Core deposit and other intangibles, net | 7,729,000 | 9,436,000 |
Foreclosed assets held for sale | 69,000 | |
Other assets | 32,115,000 | 28,287,000 |
Total Assets | 4,310,163,000 | 4,689,425,000 |
LIABILITIES & SHAREHOLDERS’ EQUITY | ||
Deposits: Noninterest-bearing demand | 850,180,000 | 850,438,000 |
Deposits: Interest-bearing demand | 1,023,027,000 | 1,066,852,000 |
Deposits: Money Market | 999,556,000 | 1,076,593,000 |
Deposits: Savings | 354,677,000 | 381,476,000 |
Deposits: Time | 475,147,000 | 626,657,000 |
Total Deposits | 3,702,587,000 | 4,002,016,000 |
Long-term debt | 4,592,000 | 81,270,000 |
Subordinated debt and trust preferred securities | 73,995,000 | 74,274,000 |
Operating lease liability | 10,324,000 | 11,363,000 |
Accrued interest payable | 1,542,000 | 1,791,000 |
Other liabilities | 21,288,000 | 28,635,000 |
Total Liabilities | 3,814,328,000 | 4,199,349,000 |
Shareholders' Equity: | ||
Common stock, par value $1.00 per share; 20.0 million shares authorized; 16.1 million issued at June 30, 2022 and at December 31, 2021; 15.9 million outstanding at June 30, 2022 and 16.0 million at December 31, 2021 | 16,081,000 | 16,056,000 |
Additional paid-in capital | 386,128,000 | 384,742,000 |
Retained earnings | 108,265,000 | 91,043,000 |
Accumulated other comprehensive (loss) income | (9,759,000) | 158,000 |
Treasury stock, at cost; 202,364 shares at June 30, 2022 and 98,452 shares at December 31, 2021 | (4,880,000) | (1,923,000) |
Total Shareholders’ Equity | 495,835,000 | 490,076,000 |
Total Liabilities and Shareholders' Equity | $ 4,310,163,000 | $ 4,689,425,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Investment securities held-to-maturity, fair value | $ 365,288 | $ 330,626 |
Common Stock, Par Value | $ 1 | $ 1 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued | 16,100,000 | 16,100,000 |
Common Stock, Shares, Outstanding | 15,900,000 | 16,000,000 |
Treasury Stock, Shares | 202,364 | 98,452 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
INTEREST INCOME | ||||
Interest and fees on loans and leases | $ 34,264 | $ 29,835 | $ 69,280 | $ 58,165 |
Interest and dividends on investment securities: | ||||
U.S. Treasury and government agencies | 2,329 | 225 | 3,865 | 403 |
State and political subdivision obligations, tax-exempt | 379 | 278 | 715 | 555 |
Other securities | 504 | 291 | 921 | 593 |
Total Interest and Dividends on Investment Securities | 3,212 | 794 | 5,501 | 1,551 |
Interest on other interest-bearing balances | 8 | 2 | 21 | 4 |
Interest on federal funds sold | 736 | 98 | 1,050 | 177 |
Total Interest Income | 38,220 | 30,729 | 75,852 | 59,897 |
INTEREST EXPENSE | ||||
Interest on deposits | 2,019 | 2,916 | 4,313 | 5,882 |
Interest on short-term borrowings | 232 | 406 | ||
Interest on long-term and subordinated debt | 768 | 704 | 1,692 | 1,407 |
Total Interest Expense | 2,787 | 3,852 | 6,005 | 7,695 |
Net Interest Income | 35,433 | 26,877 | 69,847 | 52,202 |
PROVISION FOR LOAN AND LEASE LOSSES | 1,725 | 1,150 | 2,225 | 2,150 |
Net Interest Income After Provision for Loan and Lease Losses | 33,708 | 25,727 | 67,622 | 50,052 |
NONINTEREST INCOME | ||||
Net gain on sales of SBA loans | 119 | 355 | 110 | 455 |
Earnings from cash surrender value of life insurance | 262 | 75 | 508 | 149 |
Other income | 1,674 | 797 | 3,792 | 1,588 |
Total Noninterest Income | 5,230 | 5,652 | 10,980 | 10,364 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 12,340 | 9,933 | 25,584 | 19,531 |
Occupancy expense, net | 1,655 | 1,317 | 3,454 | 2,797 |
Equipment expense | 1,112 | 741 | 2,123 | 1,492 |
Software licensing and utilization | 1,821 | 1,497 | 3,927 | 2,942 |
FDIC Assessment | 506 | 433 | 1,097 | 903 |
Legal and professional fees | 694 | 555 | 1,333 | 981 |
Charitable contributions qualifying for State tax credits | 125 | 365 | 190 | 635 |
Mortgage banking profit-sharing expense | 33 | 745 | 178 | 865 |
Gain on sale or write-down of foreclosed assets, net | (15) | (19) | (31) | (19) |
Intangible amortization | 521 | 276 | 1,002 | 557 |
Merger and acquisition expense | 522 | 522 | ||
Post-acquisition restructuring expense | 329 | |||
Other expenses | 5,123 | 3,091 | 10,474 | 5,808 |
Total Noninterest Expense | 23,915 | 19,456 | 49,660 | 37,014 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 15,023 | 11,923 | 28,942 | 23,402 |
Provision for income taxes | 2,771 | 2,310 | 5,336 | 4,477 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 12,252 | $ 9,613 | $ 23,606 | $ 18,925 |
PER COMMON SHARE DATA: | ||||
Basic Earnings Per Common Share | $ 0.77 | $ 0.93 | $ 1.48 | $ 2.02 |
Diluted Earnings Per Common Share | 0.77 | 0.93 | 1.48 | 2.02 |
Cash Dividends Declared | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.39 |
Income from Fiduciary and Wealth Management Activities [Member] | ||||
NONINTEREST INCOME | ||||
Non-interest Income | $ 1,205 | $ 542 | $ 2,257 | $ 1,098 |
Service Charges on Deposits [Member] | ||||
NONINTEREST INCOME | ||||
Non-interest Income | 450 | 177 | 1,134 | 329 |
Mortgage Banking Income [Member] | ||||
NONINTEREST INCOME | ||||
Non-interest Income | 305 | 2,841 | 834 | 5,220 |
ATM Debit Card Interchange Income [Member] | ||||
NONINTEREST INCOME | ||||
Non-interest Income | 1,128 | 656 | 2,185 | 1,224 |
Merchant Services Income [Member] | ||||
NONINTEREST INCOME | ||||
Non-interest Income | $ 87 | $ 209 | $ 160 | $ 301 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |||||
Statement Of Income And Comprehensive Income [Abstract] | ||||||||
Net income | $ 12,252 | $ 9,613 | $ 23,606 | $ 18,925 | ||||
Other comprehensive (loss) income : | ||||||||
Unrealized (loss) income arising during the period on available-for-sale securities, net of income taxes impact, respectively | (4,812) | 21 | (10,042) | 22 | ||||
Change in defined benefit plans, net of income taxes impact, respectively | (302) | [1] | 127 | [2] | 298 | [2] | ||
Reclassification adjustment for settlement losses and other activity related to benefit plans, net of income taxes impact, respectively | (1) | [2] | (1) | [2] | (2) | (44) | ||
Total other comprehensive (loss) income | (4,813) | (282) | (9,917) | 276 | ||||
Total comprehensive income | 7,439 | 9,331 | 13,689 | 19,201 | ||||
Reclassification adjustment for settlement losses and other activity related to benefit plans, net of income taxes impact, respectively | $ (1) | [2] | $ (1) | [2] | $ (2) | $ (44) | ||
[1]The change in defined benefit plans consists primarily of unrecognized actuarial gains (losses) on defined benefit plans during the period.[2]The reclassification adjustment for benefit plans includes settlement gains, amortization of prior service costs, and amortization of net gain or loss. Amounts are included in other income on the consolidated statements of income within total noninterest income. Please reference Note 11 – Defined Benefit Plans, for more information. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized (loss) income arising during the period on available for sale securities, tax | $ (1,279) | $ (6) | $ (2,669) | $ (6) |
Change in defined benefit plans, tax | 0 | (80) | 33 | 79 |
Reclassification adjustment for settlement (gains) losses and other activity related to benefit plans, tax | $ 0 | $ 0 | $ 0 | $ (12) |
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 Income (Loss) [Member] | Treasury Stock [Member] |
Balance at Dec. 31, 2020 | $ 255,688 | $ 8,512 | $ 178,853 | $ 70,175 | $ (57) | $ (1,795) |
Net income | 9,312 | 9,312 | ||||
Total other comprehensive income (loss), net of taxes | 558 | 558 | ||||
Common stock cash dividends declared | (1,599) | (1,599) | ||||
Repurchased stock | (128) | (128) | ||||
Employee Stock Purchase Plan | 40 | 2 | 38 | |||
Director Stock Purchase Plan | 33 | 1 | 32 | |||
Restricted stock activity | 132 | 132 | ||||
Balance at Mar. 31, 2021 | 264,036 | 8,515 | 179,055 | 77,888 | 501 | (1,923) |
Balance at Dec. 31, 2020 | 255,688 | 8,512 | 178,853 | 70,175 | (57) | (1,795) |
Net income | 18,925 | |||||
Total other comprehensive income (loss), net of taxes | 276 | |||||
Balance at Jun. 30, 2021 | 341,569 | 11,507 | 246,546 | 85,220 | 219 | (1,923) |
Balance at Mar. 31, 2021 | 264,036 | 8,515 | 179,055 | 77,888 | 501 | (1,923) |
Net income | 9,613 | 9,613 | ||||
Total other comprehensive income (loss), net of taxes | (282) | (282) | ||||
Common stock cash dividends declared | (2,281) | (2,281) | ||||
Common shares issued through follow-on public offering (2,990,000 shares), net of underwriting discounts and offering expenses | 70,238 | 2,990 | 67,248 | |||
Employee Stock Purchase Plan | 38 | 1 | 37 | |||
Director Stock Purchase Plan | 34 | 1 | 33 | |||
Restricted stock activity | 173 | 173 | ||||
Balance at Jun. 30, 2021 | 341,569 | 11,507 | 246,546 | 85,220 | 219 | (1,923) |
Balance at Dec. 31, 2021 | 490,076 | 16,056 | 384,742 | 91,043 | 158 | (1,923) |
Net income | 11,354 | 11,354 | ||||
Total other comprehensive income (loss), net of taxes | (5,104) | (5,104) | ||||
Common stock cash dividends declared | (3,191) | (3,191) | ||||
Riverview restricted stock adjustment | 776 | 776 | ||||
Employee Stock Purchase Plan | 46 | 2 | 44 | |||
Director Stock Purchase Plan | 36 | 1 | 35 | |||
Restricted stock activity | 168 | 168 | ||||
Balance at Mar. 31, 2022 | 494,161 | 16,059 | 385,765 | 99,206 | (4,946) | (1,923) |
Balance at Dec. 31, 2021 | 490,076 | 16,056 | 384,742 | 91,043 | 158 | (1,923) |
Net income | 23,606 | |||||
Total other comprehensive income (loss), net of taxes | (9,917) | |||||
Balance at Jun. 30, 2022 | 495,835 | 16,081 | 386,128 | 108,265 | (9,759) | (4,880) |
Balance at Mar. 31, 2022 | 494,161 | 16,059 | 385,765 | 99,206 | (4,946) | (1,923) |
Net income | 12,252 | 12,252 | ||||
Total other comprehensive income (loss), net of taxes | (4,813) | (4,813) | ||||
Common stock cash dividends declared | (3,193) | (3,193) | ||||
Repurchased stock | (2,957) | (2,957) | ||||
Employee Stock Purchase Plan | 51 | 2 | 49 | |||
Director Stock Purchase Plan | 43 | 2 | 41 | |||
Restricted stock activity | 291 | 18 | 273 | |||
Balance at Jun. 30, 2022 | $ 495,835 | $ 16,081 | $ 386,128 | $ 108,265 | $ (9,759) | $ (4,880) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Common stock cash dividends declared per share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.19 |
Repurchased stock, Shares | 103,912 | 5,800 | ||
Stock issued during period shares, Director Stock Purchase Plans | 1,589 | 1,377 | 2,231 | 1,743 |
Stock issued during period shares, Restricted stock activity | 17,200 | |||
Common Stock [Member] | ||||
Stock issued during period, shares, Employee Stock Purchase Plans | 1,899 | 1,710 | 2,365 | 1,647 |
Common shares issued through follow-on public offering, shares | 2,990,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities: | ||
Net Income | $ 23,606,000 | $ 18,925,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan and lease losses | 2,225,000 | 2,150,000 |
Depreciation | 1,993,000 | 1,639,000 |
Amortization of intangibles | 1,002,000 | 557,000 |
Net amortization of security discounts/premiums | 384,000 | 326,000 |
Amortization of operating lease right of use assets | 844,000 | 857,000 |
Amortization of finance lease right of use asset | 90,000 | 90,000 |
Earnings on cash surrender value of life insurance | (508,000) | (149,000) |
Mortgage loans originated for sale | (82,142,000) | (178,492,000) |
Proceeds from sales of mortgage loans originated for sale | 84,916,000 | 185,016,000 |
Gain on sale of mortgage loans | (834,000) | (5,220,000) |
SBA loans originated for sale | (2,636,000) | (4,894,000) |
Proceeds from sales of SBA loans originated for sale | 2,807,000 | 5,349,000 |
Gain on sale of SBA loans | (110,000) | (455,000) |
Gain on disposal or write-down of property, plant, and equipment | (71,000) | (25,000) |
Gain on sale or write-down of foreclosed assets | (31,000) | (19,000) |
Loss on sale of bank premises and equipment held for sale | 1,333,000 | |
Write-off of bank premises and equipment held for sale | 705,000 | |
Accretion of subordinated debt | (279,000) | |
Stock compensation expense | 459,000 | 305,000 |
Deferred income tax benefit | (206,000) | (1,597,000) |
(Increase) decrease in accrued interest receivable | (1,574,000) | 2,333,000 |
(Increase) decrease in other assets | (3,828,000) | 3,633,000 |
(Decrease) increase in accrued interest payable | (249,000) | 115,000 |
Net change in operating lease liability | (1,154,000) | (877,000) |
Decrease in other liabilities | (7,301,000) | (1,570,000) |
Net Cash Provided By Operating Activities | 19,441,000 | 27,997,000 |
Investing Activities: | ||
Proceeds from the maturity or call of available-for-sale securities | 5,439,000 | 2,500,000 |
Purchases of available-for-sale securities | (174,102,000) | (4,892,000) |
Proceeds from the maturity or call of held-to-maturity securities | 9,620,000 | 22,757,000 |
Purchases of held-to-maturity securities | (79,664,000) | (47,818,000) |
Reduction of restricted investment in bank stock | 4,900,000 | 778,000 |
Net increase in loans and leases | 75,753,000 | 111,987,000 |
Purchases of bank premises and equipment | (2,549,000) | (1,515,000) |
Proceeds from the sale of bank premises and equipment | 127,000 | 29,000 |
Proceeds from the sale of foreclosed assets | 71,000 | 162,000 |
Net Cash Used In Investing Activities | (311,911,000) | (139,986,000) |
Financing Activities: | ||
Net (decrease) increase in deposits | (299,429,000) | 307,544,000 |
Net increase in short-term borrowings | 71,272,000 | |
Common stock dividends paid | (6,384,000) | (4,301,000) |
Treasury stock purchased | (2,957,000) | (128,000) |
Riverview restricted stock adjustment | 776,000 | |
Net change in finance lease liability | (44,000) | (43,000) |
Long-term debt repayment | (76,634,000) | (115,000) |
Net Cash (Used In) Provided By Financing Activities | (384,496,000) | 444,612,000 |
Net (decrease) increase in cash and cash equivalents | (676,966,000) | 332,623,000 |
Cash and cash equivalents, beginning of period | 913,752,000 | 303,724,000 |
Cash and cash equivalents, end of period | 236,786,000 | 636,347,000 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 3,467,000 | 7,580,000 |
Cash paid for income taxes | 3,500,000 | 5,820,000 |
Supplemental Noncash Disclosures: | ||
Recognition of operating lease right of use assets | 115,000 | 1,064,000 |
Recognition of operating lease liabilities | 115,000 | 1,064,000 |
Obsolete Riverview asset writeoff | 705,000 | |
Loans transferred to foreclosed assets held for sale | 109,000 | 20,000 |
Held-to-maturity securities purchased, not settled | 524,000 | |
Employee [Member] | ||
Financing Activities: | ||
Proceeds from Stock Purchase Plan stock issuance | 97,000 | 78,000 |
Director [Member] | ||
Financing Activities: | ||
Proceeds from Stock Purchase Plan stock issuance | $ 79,000 | 67,000 |
Follow-on Public Offering [Member] | ||
Financing Activities: | ||
Proceeds from follow-on common stock public offering | $ 70,238,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation For all periods presented, the accompanying consolidated financial statements include the accounts of Mid Penn Bancorp, Inc. (“Mid Penn” or the “Corporation”), its wholly-owned subsidiary, Mid Penn Bank (the “Bank”), and three nonbank subsidiaries which were established during 2020, including MPB Financial Services, LLC, under which two additional nonbank subsidiaries have been established: (i) MPB Wealth Management, LLC, created to expand the wealth management services and capabilities of the Corporation, and (ii) MPB Risk Services, LLC, created to fulfill the insurance needs of both existing and potential customers of the Corporation. As of June 30, 2022, the accounts and activities of these nonbank subsidiaries established in 2020 were not material to warrant separate disclosure or segment reporting. As a result, Mid Penn has only one On November 30, 2021, Mid Penn completed its acquisition of Riverview Financial Corporation (“Riverview”), pursuant to the previously announced Agreement and Plan of Merger dated as of June 30, 2021. On November 30, 2021, Riverview was merged with and into Mid Penn, with Mid Penn being the surviving corporation. Refer to Note 3, Acquisition of Riverview Financial Corporation, as well as the Company’s Current Report on Form 8-K filed on December 1, 2021, for more information. The comparability of Mid Penn’s results of operations for the period ended June 30, 2022, compared to the periods ended June 30, 2021 and the year ended December 31, 2021, in general, has been materially impacted by this acquisition, as further described in Note 3. For comparative purposes, the June 30, 2021 and December 31, 2021 balances have been reclassified, when necessary, to conform to the 2022 presentation. Such reclassifications had no impact on net income or total shareholders’ equity. In the opinion of management, all adjustments necessary for fair presentation of the periods presented have been reflected in the accompanying consolidated financial statements. All such adjustments are of a normal, recurring nature. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021. Mid Penn has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2022, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the issuance date of these consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 - Summary of Significant Accounting Policies The accounting and reporting policies of Mid Penn conform with accounting principles as required under GAAP and general practices within the financial industry. The following is a description of the more significant accounting policies. 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 pledging requirements, and that may be sold in response to liquidity needs, changes in interest rates, resultant prepayment risk, reductions in pledging levels, and other factors related to effective portfolio management. Securities to be held to maturity are carried at amortized cost. For available-for-sale debt securities, realized gains and losses on dispositions are based on the difference between net proceeds and the amortized cost of the securities sold, using the specific identification method. Unrealized gains and losses on debt securities are based on the difference between the amortized cost and fair value of each security as of the respective reporting date. Unrealized gains and losses are credited or charged to other comprehensive income on an after-tax basis, whereas realized gains and losses flow through Mid Penn’s consolidated statement of income for the respective period. ASC Topic 320, Investments – Debt and Equity Securities In instances when a determination is made that an other-than-temporary impairment of a debt security exists, but the Corporation 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. Equity Securities In accordance with ASC Topic 825 , Financial Instruments Loans 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 and lease 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 Loans 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% 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 Loans 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 Loans 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% 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% 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, Federal Home Loan Bank, 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 the required 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 funded and held in the Bank’s portfolio, the interest rate on the residential mortgage would be increased to compensate for the added portfolio risk. Consumer Loans, Including Home Equity Credits 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% 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 ten 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. Payroll Protection Program (“PPP”) Loans Included in total loans as of June 30, 2022, within the commercial and industrial loan portfolio classification, are $4,966,000 of PPP loans, net of deferred fees, which, as of June 30, 2022, were still outstanding as the remaining borrowers and the Small Business Administration (“SBA”) had not yet completed the loan forgiveness and repayment process. Comparatively, as of December 31, 2021, Mid Penn had $111,286,000 of PPP loans outstanding, net of deferred fees. Mid Penn has been a significant participating lender under the PPP, which was originally created when the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law on March 27, 2020, and extended by the signing of the Consolidated Appropriations Act, 2021 into law on December 27, 2020, and further extended to May 31, 2021 by the PPP Extension Act of 2021. The PPP loans, which are 100% guaranteed by the SBA, have up to a five-year term to maturity and carry a low interest rate of 1% throughout the loan term. The SBA also provided a processing fee per loan to financial institutions who participated in the PPP, with the amount of such fee generally ranging from 1% to 5% as pre-determined by the SBA dependent upon the size of each respective credit. As of June 30, 2022, Mid Penn had received $42,520,000 of nonrefundable loan processing fees related to the loans disbursed as a result of Mid Penn’s participation in the PPP initiative, consisting of (i) $20,883,000 of loan processing fees received related to PPP loans funded during the year ended December 31, 2020, (ii) $ 17,997,000 of loan processing fees received related to PPP loans funded during the year ended December 31, 2021, and (iii) $ 3,640,000 during the six months ended June 30, 2022. In addition to receiving and deferring the processing fees, Mid Penn recorded and deferred related loan origination costs, and in accordance with ASC 310-20, Receivables—Nonrefundable Fees and Other Costs, the processing fees and loan origination costs are being amortized to interest and fees on loans and leases on the c onsolidated s tatements of i ncome over the life of each respective loan. As of June 30 , 2022, Mid Penn had $ 171,000 of PPP deferred loan processing fees not yet realized as income. Comparatively, as of December 31, 2021, Mid Penn had PPP deferred loan processing fees not yet realized as income totaling $ 3,811,000 . Mid Penn recognized $ 3,640,000 of PPP processing fees during the quarter ended June 30 , 2022, compared to $ 6,244,000 of PPP processing fees for the same period of 2021. PPP processing fees are reflected within interest and fees on loans and leases on the c onsolidated s tatements of i ncome. Allowance for Loan and Lease Losses The allowance for loan and lease losses (“allowance”) and the related provision reflect Mid Penn’s continued application of the incurred loss method for estimating credit losses as Mid Penn is not required to adopt the current expected credit loss (“CECL”) accounting standard until January 1, 2023, and Mid Penn has not elected to early adopt CECL. The 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 $74,000 at June 30, 2022 and $72,000 at December 31, 2021. 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, or earlier in the event of either 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 by management to be adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on Mid Penn’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class, including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include changes in economic conditions, fluctuations in loan quality measures, changes in collateral values, changes in the experience of the lending staff and loan review systems, changes in lending policies and procedures (including underwriting standards), changes in the mix and volume of loans originated, the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio, shifting industry or portfolio concentrations, and other relevant factors. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in relevant analyses and a narrative accompanying the allowance for loan and lease loss calculation. The unallocated component of the allowance for loan and lease losses covers several considerations that are not specifically measurable through the specific and general components. For example, at times Mid Penn could face increasing credit risks and uncertainties, not yet reflected in recent historical losses or qualitative factor assessments, associated with unpredictable changes in economic growth or business conditions in our markets or for certain industries in which we have commercial loan borrowers, or unanticipated stresses to the values of real estate held as collateral, or unforeseeable effects on the portfolio from other influences, inducing the long-term impact of the pandemic. Any or all of these additional issues can adversely affect our borrowers’ ability to timely repay their loans. 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 classified as substandard nonaccrual, doubtful or having probable loss will first have a collateral evaluation completed in accordance with the guidance on impaired loans. Once the collateral evaluation has been completed, a specific allocation of allowance is made based upon the results of the evaluation. The remaining balance remains a 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 determined to be impaired will also have an initial collateral evaluation completed in accordance with the guidance on impaired loans. An updated real estate valuation is ordered, and the collateral evaluation is modified to reflect any variations in value. A specific allocation of allowance is made for any anticipated collateral shortfall. The remaining balance remains a 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. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of either bankruptcy or if there is an amount deemed uncollectible. The collateral shortfall of the consumer loan is recommended for charge-off at this point. As noted above, Mid Penn assesses a specific allocation for commercial loans and commercial real estate loans. The remaining balance remains a 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 collateral valuations on all impaired loans secured by real estate as soon as practically possible following 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, the independent third-party market valuations on the subject property obtained by Mid Penn as soon as practically possible following the credit being placed on 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. 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 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 and lease 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. No such additions were required from any recent examinations. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan and lease losses is adequate. Mid Penn had $4,966,000 and $111,286,000 of PPP loans outstanding, net of deferred fees, as of June 30, 2022 and December 31, 2021, respectively, which though they are classified as commercial and industrial credits, are guaranteed by the Small Business Administration and, thus, have no loss reserve allocated to them. Acquired Loans Loans that Mid Penn acquires in connection with business combinations are recorded at fair value with no carryover of the acquired entity’s related allowance for loan and lease losses. Loans acquired at fair value and included in the balance of loans and leases, net of unearned interest, on the consolidated balance sheets totaled $895,855,000 and $1,010,039,000 as of June 30, 2022 and December 31, 2021, respectively. The fair value of the acquired loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. 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 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 and lease losses established at the acquisition date for acquired performing loans. An allowance for loan and lease 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 at the date of acquisition and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. Mortgage Banking Derivative Financial Instruments During the third quarter of 2021, Mid Penn began using mortgage banking derivative financial instruments as part of our overall strategy to manage exposure to market risk within our mortgage banking operations, primarily due to fluctuations in interest rates, and to reduce the risk of price volatility of loans in the commitment phase. In connection with its mortgage banking activities, Mid Penn enters into interest rate lock commitments (IRLCs) to extend credit to a mortgage applicant within a specified perio |
Acquisition of Riverview Financ
Acquisition of Riverview Financial Corporation | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Acquisition of Riverview Financial Corporation | Note 3 - Acquisition of Riverview Financial Corporation On November 30, 2021, Mid Penn completed its acquisition of Riverview through the merger of Riverview with and into Mid Penn. In connection with this acquisition, Riverview Bank, Riverview’s wholly-owned bank subsidiary, merged with and into Mid Penn Bank. Pursuant to the merger agreement, shareholders of Riverview common stock received, for each share of Riverview common stock held at the effective time of the merger, 0.4833 shares of Mid Penn common stock as merger consideration with an acquisition date fair value of $142,192,000 based on the closing stock price of Mid Penn’s common stock on November 30, 2021 of $31.46. This exchange ratio did not change as a result of changes in the Mid Penn share price. Additionally, outstanding options at the time of the merger were converted into the right to receive an amount in cash equal to the product obtained by multiplying the aggregate number of shares of Riverview common stock that were issuable upon exercise of each option outstanding, and the closing sale price of Mid Penn’s common stock on the fifth (5th) business day prior to the merger closing date multiplied by the exchange ratio, less the per share exercise price of each option outstanding, without interest. There were 172,964 options outstanding to purchase Riverview common stock and the closing price of Mid Penn common stock was at $30.76 per share on the fifth business day prior to the merger closing date. Additionally, 2,500 shares of restricted stock were paid out in cash, resulting in $776,000 of cash consideration relating to stock awards. Including $16,000 of cash paid in lieu of fractional shares, the total fair value of consideration paid was $142,984,000. The assets and liabilities of Riverview were recorded on the consolidated balance sheets of Mid Penn at their estimated fair value as of November 30, 2021, and their results of operations have been included in the consolidated income statement of the Corporation since such date. Riverview has been fully integrated into Mid Penn; therefore, the amount of revenue and earnings of Riverview included in the consolidated income statement since the acquisition date is impracticable to provide. The acquisition of Riverview resulted in the recognition and recording of intangible assets including $50,995,000 of goodwill, a core deposit intangible of $4,096,000, and a customer list intangible of $2,160,000. The core deposit intangible and customer list intangible will be amortized over a ten-year The allocation of the purchase price is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 316,079 Investment securities 226 Restricted stock 2,209 Loans 837,505 Goodwill 50,995 Core deposit intangible 4,096 Customer list intangible 2,160 Bank owned life insurance 32,120 Premises and equipment 11,819 Deferred income taxes 7,110 Accrued interest receivable 1,919 Other assets 6,683 Total assets acquired 1,272,921 Liabilities assumed: Deposits: Noninterest-bearing demand 182,291 Interest-bearing demand 371,283 Money Market 152,365 Savings 176,294 Time 199,414 Long-term debt 6,500 Subordinated debt and trust preferred securities 36,308 Accrued interest payable 439 Other liabilities 5,043 Total liabilities assumed 1,129,937 Consideration paid $ 142,984 Cash paid $ 792 Fair value of common stock issued 142,192 Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, allows for adjustments to goodwill up to one year after the merger date for information that becomes available during this post-merger period that reflects circumstances at the date of merger. The following table summarizes the estimated fair value of the assets acquired and liabilities and equity assumed in the Riverview transaction that management believes are final; however, these values could be adjusted under ASC 805 until November 30, 2022. (Dollars in thousands) Total purchase price (consideration paid) $ 142,984 Net assets acquired: Cash and cash equivalents 316,079 Investment securities 226 Restricted stock 2,209 Loans 837,505 Core deposit intangible 4,096 Customer list intangible 2,160 Bank owned life insurance 32,120 Premises and equipment 11,819 Deferred income taxes 7,110 Accrued interest receivable 1,919 Other assets 6,683 Deposits: Noninterest-bearing demand (182,291 ) Interest-bearing demand (371,283 ) Money Market (152,365 ) Savings (176,294 ) Time (199,414 ) Long-term debt (6,500 ) Subordinated debt and trust preferred securities (36,308 ) Accrued interest payable (439 ) Other liabilities (5,043 ) Net assets acquired 91,989 Goodwill $ 50,995 In general, factors contributing to goodwill recognized as a result of the Riverview acquisition include expected cost savings from combined operations, opportunities to expand into several new markets, and growth and profitability potential from the repositioning of short-term investments into higher-yielding loans. The goodwill acquired as a result of the Riverview acquisition is not tax deductible. The fair value of the financial assets acquired included loans receivable with a net amortized cost basis of $837,505,000. The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (Dollars in thousands) Gross amortized cost basis at November 30, 2021 $ 850,920 Market rate adjustment 529 Credit fair value adjustment on pools of homogeneous loans (13,117 ) Credit fair value adjustment on impaired loans (827 ) Fair value of purchased loans at November 30, 2021 $ 837,505 The market rate adjustment represents the movement in market interest rates, irrespective of credit adjustments, compared to the contractual rates of the acquired loans. The credit adjustment made on pools of homogeneous loans represents the changes in credit quality of the underlying borrowers from loan inception to the acquisition date. The credit adjustment on impaired loans is derived in accordance with ASC 310-30-30 and represents the portion of the loan balance that has been deemed uncollectible based on our expectations of future cash flows for each respective loan. The information about the acquired Riverview impaired loan portfolio as of November 30, 2021 is as follows: (Dollars in thousands) Contractually required principal and interest at acquisition $ 5,591 Contractual cash flows not expected to be collected (nonaccretable discount) (1,739 ) Expected cash flows at acquisition 3,852 Interest component of expected cash flows (accretable discount) (541 ) Fair value of acquired loans $ 3,311 The following table presents pro forma information as if the merger between Mid Penn and Riverview had been completed on January 1, 2021. The pro forma information does not necessarily reflect the results of operations that would have occurred had Mid Penn merged with Riverview at the beginning of 2021. The pro forma financial information does not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions or revenues, expense efficiencies, or other factors. (Dollars in thousands, except per share data) Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Net interest income after loan loss provision $ 37,478 $ 71,413 Noninterest income 9,347 16,582 Noninterest expense 31,910 60,708 Net income 14,915 27,287 Net income per common share 0.76 1.46 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2022 | |
Securities Financing Transactions Disclosures [Abstract] | |
Investment Securities | Note 4 - Investment Securities The majority of the investment portfolio is comprised of securities issued by U.S. Treasury and government agencies, mortgage-backed U.S. government agencies, and state and political subdivision obligations. The amortized cost, fair value, and unrealized gains and losses on investment securities at June 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2022 Available-for-sale debt securities: U.S. Treasury and U.S. government agencies $ 34,475 $ 76 $ 525 $ 34,026 Mortgage-backed U.S. government agencies 166,321 40 10,928 155,433 State and political subdivision obligations 4,366 — 697 3,669 Corporate debt securities 26,570 — 1,000 25,570 Total available-for-sale debt securities 231,732 116 13,150 218,698 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies $ 239,605 $ 28 $ 21,516 $ 218,117 Mortgage-backed U.S. government agencies 55,180 1 4,857 50,324 State and political subdivision obligations 88,250 68 6,673 81,645 Corporate debt securities 15,997 1 796 15,202 Total held-to-maturity debt securities 399,032 98 33,842 365,288 Total $ 630,764 $ 214 $ 46,992 $ 583,986 (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2021 Available-for-sale debt securities: Mortgage-backed U.S. government agencies $ 49,760 $ 3 $ 283 $ 49,480 State and political subdivision obligations 3,899 26 11 3,914 Corporate debt securities 9,525 — 57 9,468 Total available-for-sale debt securities 63,184 29 351 62,862 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies $ 178,136 $ 26 $ 1,165 $ 176,997 Mortgage-backed U.S. government agencies 61,157 440 272 61,325 State and political subdivision obligations 75,958 2,305 27 78,236 Corporate debt securities 14,006 133 71 14,068 Total held-to-maturity debt securities 329,257 2,904 1,535 330,626 Total $ 392,441 $ 2,933 $ 1,886 $ 393,488 Estimated fair values of debt securities are based on quoted market prices, where applicable. If quoted market prices are not available, fair values are based on quoted market prices of instruments of a similar type, credit quality and structure, adjusted for differences between the quoted instruments and the instruments being valued. Please refer to Note 7, Fair Value Measurement Investment securities having a fair value of $380,649,000 at June 30, 2022 and $244,763,000 at December 31, 2021 were pledged to secure public deposits, some Trust department deposit accounts, and certain other borrowings. In accordance with legal provisions for alternatives other than pledging of investments, Mid Penn also obtains letters of credit from the Federal Home Loan Bank of Pittsburgh (“FHLB”) to secure certain public deposits. These FHLB letter of credit commitments totaled $205,100,000 as of June 30, 2022 and $450,850,000 as of December 31, 2021. The following tables present gross unrealized losses and fair value of debt security investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2022 and December 31, 2021. (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized June 30, 2022 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale debt securities: U.S. Treasury and U.S. government agencies 11 $ 18,476 $ 525 0 $ — $ — 11 $ 18,476 $ 525 Mortgage-backed U.S. government agencies 83 146,413 10,928 0 — — 83 146,413 10,928 State and political subdivision obligations 8 3,669 697 0 — — 8 3,669 697 Corporate debt securities 13 21,319 1,000 0 — — 13 21,319 1,000 Total temporarily impaired available-for-sale debt securities 115 $ 189,877 $ 13,150 0 $ — $ — 115 $ 189,877 $ 13,150 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 134 $ 205,184 $ 20,366 5 $ 7,345 $ 1,150 139 $ 212,529 $ 21,516 Mortgage-backed U.S. government agencies 64 50,323 4,857 0 — — 64 50,323 4,857 State and political subdivision obligations 168 68,551 6,548 4 815 125 172 69,366 6,673 Corporate debt securities 3 4,784 272 4 4,475 524 7 9,259 796 Total temporarily impaired held-to-maturity debt securities 369 328,842 32,043 13 12,635 1,799 382 341,477 33,842 Total 484 $ 518,719 $ 45,193 13 $ 12,635 $ 1,799 497 $ 531,354 $ 46,992 (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, 2021 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale securities: U.S. government agencies 24 $ 45,476 $ 283 0 $ — $ — 24 $ 45,476 $ 283 State and political subdivision obligations 2 1,168 11 0 — — 2 1,168 11 Corporate debt securities 4 4,943 57 0 — — 4 4,943 57 Total temporarily impaired available-for-sale securities 30 51,587 351 0 — — 30 51,587 351 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 91 $ 149,425 $ 1,165 0 $ — $ — 91 $ 149,425 $ 1,165 Mortgage-backed U.S. government agencies 24 39,995 272 0 — — 24 39,995 272 State and political subdivision obligations 17 5,302 25 1 255 2 18 5,557 27 Corporate debt securities 6 6,928 71 0 — — 6 6,928 71 Total temporarily impaired held to maturity securities 138 201,650 1,533 1 255 2 139 201,905 1,535 Total 168 $ 253,237 $ 1,884 1 $ 255 $ 2 169 $ 253,492 $ 1,886 Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such additional evaluation. Consideration is given to the length of time and the extent to which the fair value of the security has been less than amortized cost, as well as the overall financial condition of the issuer. In addition, for debt securities, Mid Penn considers (i) whether management has the intent to sell the security, (ii) whether it is more likely than not that management will be required to sell the security prior to its anticipated recovery, and (iii) whether management expects to recover the entire amortized cost basis. At June 30, 2022, the majority of securities in an unrealized loss position were U.S. government agency securities and mortgage-backed U.S. government agency securities. At December 31, 2021, the majority of securities in an unrealized loss position were attributable to mortgage-backed U.S. government agency securities. Mid Penn had no securities considered by management to be other-than-temporarily impaired as of June 30, 2022, December 31, 2021, or June 30, 2021, and did not record any securities impairment charges in the respective periods ended on these dates. This determination reflects management’s assessment that no securities in its portfolio were impaired as a result of any COVID-19 pandemic impacts, to date, to the repayment ability of the underlying issuers of securities. Mid Penn does not consider the securities with unrealized losses on the respective dates to be other-than-temporarily impaired as the unrealized losses were deemed to be temporary changes in value related to market movements in interest yields at various periods similar to the maturity dates of holdings in the investment portfolio, and not reflective of an erosion of credit quality. There were no g ross realized gains and losses on sales of available-for-sale debt securities for the three and six months ended June 30, 2022 and 2021. The table below illustrates the maturity distribution of investment securities at amortized cost and fair value as of June 30, 2022. (Dollars in thousands) Available-for-sale Held-to-maturity Amortized Fair Amortized Fair June 30, 2022 Cost Value Cost Value Due in 1 year or less $ 250 $ 250 $ 450 $ 451 Due after 1 year but within 5 years 32,976 32,649 69,605 67,815 Due after 5 years but within 10 years 28,121 26,955 230,019 209,494 Due after 10 years 4,064 3,411 43,778 37,204 65,411 63,265 343,852 314,964 Mortgage-backed securities 166,321 155,433 55,180 50,324 $ 231,732 $ 218,698 $ 399,032 $ 365,288 |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2022 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Loans and Allowance for Loan and Lease Losses | Note 5 - Loans and Allowance for Loan and Lease Losses As of June 30, 2022 and December 31, 2021, the types of loans in Mid Penn’s portfolio, summarized using Mid Penn’s internal risk rating system between those rated “pass” (net of deferred fees and costs of $3,146,000 as of June 30, 2022 and $6,264,000 as of December 31, 2021), which comprise the vast majority of the portfolio, and those classified as “special mention” and “substandard”, are as follows: (Dollars in thousands) Special June 30, 2022 Pass Mention Substandard Total Commercial and industrial $ 536,391 $ 11,014 $ 2,476 $ 549,881 Commercial real estate 1,781,062 16,849 28,033 1,825,944 Commercial real estate - construction 374,888 — 1,229 376,117 Residential mortgage 296,636 204 3,496 300,336 Home equity 117,106 507 866 118,479 Consumer 9,276 — — 9,276 $ 3,115,359 $ 28,574 $ 36,100 $ 3,180,033 (Dollars in thousands) Special December 31, 2021 Pass Mention Substandard Total Commercial and industrial $ 606,484 $ 10,321 $ 2,757 $ 619,562 Commercial real estate 1,601,196 35,508 31,438 1,668,142 Commercial real estate - construction 371,337 — 1,397 372,734 Residential mortgage 319,862 294 3,067 323,223 Home equity 106,853 534 2,919 110,306 Consumer 10,429 — — 10,429 $ 3,016,161 $ 46,657 $ 41,578 $ 3,104,396 All PPP loans, whether disbursed in 2020 or 2021, are included in commercial and industrial loans and are fully guaranteed by the SBA; therefore, all PPP loans outstanding (net of the related deferred PPP fees) are classified as “pass” within Mid Penn’s internal risk rating system as of June 30, 2022. Mid Penn had no loans classified as “doubtful” as of June 30, 2022 and December 31, 2021. Impaired loans by loan portfolio class as of June 30, 2022 and December 31, 2021 are summarized as follows: June 30, 2022 December 31, 2021 (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 $ — $ — $ — $ — $ 31 $ — Commercial real estate 637 1,038 — 854 1,243 — Commercial real estate - construction — 5 — 22 27 — Residential mortgage 1,314 1,355 — 1,259 1,295 — Home equity 99 99 — 2,377 2,377 — Consumer — — — — — — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ — $ — $ — $ — $ — $ — Commercial real estate 2,109 2,123 — 2,231 2,909 — Commercial real estate - construction 1,221 1,467 — 1,196 1,469 — Residential mortgage 1,285 1,771 — 1,362 1,847 — Home equity 85 105 — 86 111 — Consumer — — — — — — With an allowance recorded: Commercial and industrial $ 507 $ 538 $ 118 $ 308 $ 339 $ 67 Commercial real estate 1,469 688 892 287 359 121 Commercial real estate - construction — — — — — — Residential mortgage — — — — — — Home equity — — — — — — Consumer — — — — — — Total Impaired Loans: Commercial and industrial $ 507 $ 538 $ 118 $ 308 $ 370 $ 67 Commercial real estate 4,215 3,849 892 3,372 4,511 121 Commercial real estate - construction 1,221 1,472 — 1,218 1,496 — Residential mortgage 2,599 3,126 — 2,621 3,142 — Home equity 184 204 — 2,463 2,488 — Consumer — — — — — — The average recorded investment of impaired loans and related interest income recognized for the three and six months ended June 30, 2022 and 2021 are summarized as follows: Three Months Ended June 30, 2022 June 30, 2021 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ — $ — $ 72 $ — Commercial real estate 604 — 778 1 Commercial real estate - construction 211 — 26 — Residential mortgage 1,392 6 759 6 Home equity 99 100 2,336 — Consumer — — — — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ — $ — $ — $ — Commercial real estate 2,147 — 1,398 — Commercial real estate - construction 1,205 — — — Residential mortgage 1,335 — 300 — Home equity 85 — — — Consumer — — — — With an allowance recorded: Commercial and industrial $ 503 $ — $ 221 $ — Commercial real estate 735 — 1,793 — Commercial real estate - construction — — — — Residential mortgage — — — — Home equity — — — — Consumer — — — — Total Impaired Loans: Commercial and industrial $ 503 $ — $ 293 $ — Commercial real estate 3,486 — 3,969 1 Commercial real estate - construction 1,416 — 26 — Residential mortgage 2,727 6 1,059 6 Home equity 184 100 2,336 — Consumer — — — — Six Months Ended June 30, 2022 June 30, 2021 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ — $ — $ 502 $ — Commercial real estate 719 — 3,257 1 Commercial real estate - construction 148 — 28 — Residential mortgage 1,379 12 778 14 Home equity 858 184 2,346 — Consumer — — — — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ — $ — $ — $ — Commercial real estate 1,948 — 1,406 — Commercial real estate - construction 1,214 — — — Residential mortgage 1,294 — 309 — Home equity 84 — — — Consumer — — — — With an allowance recorded: Commercial and industrial $ 513 $ — $ 177 $ — Commercial real estate 596 — 1,491 — Commercial real estate - construction — — — — Residential mortgage — — — — Home equity — — — — Consumer — — — — Total Impaired Loans: Commercial and industrial $ 513 $ — $ 679 $ — Commercial real estate 3,263 — 6,154 1 Commercial real estate - construction 1,362 — 28 — Residential mortgage 2,673 12 1,087 14 Home equity 942 184 2,346 — Consumer — — — — Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of June 30, 2022 and December 31, 2021 are summarized as follows: (Dollars in thousands) June 30, 2022 December 31, 2021 Commercial and industrial $ 1,357 $ 308 Commercial real estate 2,297 3,372 Commercial real estate - construction 1,229 1,218 Residential mortgage 2,164 2,186 Home equity 504 2,463 $ 7,551 $ 9,547 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of June 30, 2022 and December 31, 2021 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 June 30, 2022 Due Due Days Due Current Total Loans Accruing Commercial and industrial $ 3,265 $ 694 $ 507 $ 4,466 $ 545,415 $ 549,881 $ — Commercial real estate 75 — 512 587 1,823,248 1,823,835 — Commercial real estate - construction 226 — — 226 374,670 374,896 — Residential mortgage 484 99 917 1,500 297,551 299,051 — Home equity 76 167 351 594 117,800 118,394 — Consumer 2 — — 2 9,274 9,276 — Loans acquired with credit deterioration: Commercial and industrial — — — — — — — Commercial real estate — 16 851 867 1,242 2,109 — Commercial real estate - construction 1,221 — — 1,221 — 1,221 — Residential mortgage 106 52 327 485 800 1,285 — Home equity — — 57 57 28 85 — Consumer — — — — — — — Total $ 5,455 $ 1,028 $ 3,522 $ 10,005 $ 3,170,028 $ 3,180,033 $ — Loans (Dollars in thousands) 30-59 60-89 Greater Receivable > Days Past Days Past than 90 Total Past 90 Days and December 31, 2021 Due Due Days Due Current Total Loans Accruing Commercial and industrial $ 1,378 $ 62 $ 404 $ 1,844 $ 617,718 $ 619,562 $ 96 Commercial real estate 32 55 769 856 1,665,055 1,665,911 — Commercial real estate - construction — — 205 205 371,333 371,538 205 Residential mortgage 1,246 205 1,002 2,453 319,408 321,861 212 Home equity 403 — 2,377 2,780 107,440 110,220 — Consumer 6 2 2 10 10,419 10,429 2 Loans acquired with credit deterioration: Commercial and industrial — — — — — — — Commercial real estate — 3 1,628 1,631 600 2,231 — Commercial real estate - construction — — — — 1,196 1,196 — Residential mortgage 54 — 818 872 490 1,362 — Home equity — — — — 86 86 — Consumer — — — — — — — Total $ 3,119 $ 327 $ 7,205 $ 10,651 $ 3,093,745 $ 3,104,396 $ 515 The allowance for loan and lease losses and the related loan loss provision for the periods presented reflect Mid Penn’s continued application of the incurred loss method for estimating credit losses, as Mid Penn is not required to adopt the current expected credit loss (“CECL”) accounting standard until January 1, 2023, and Mid Penn has not elected to early adopt CECL. PPP loans, both those disbursed in 2020 and those disbursed in 2021, are included in the commercial and industrial classification and, as the PPP loans are fully guaranteed by the Small Business Administration, no allowance for loan and lease losses was recorded against the $4,966,000 balance of PPP loans outstanding (net of related deferred PPP fees) as of June 30, 2022. The following tables summarize the allowance and recorded investments in loans receivable. (Dollars in thousands) As of, and for the three months ended, June 30, 2022 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, April 1, 2022 $ 3,811 $ 9,991 $ 41 $ 483 $ 562 $ 2 $ 257 $ 15,147 Charge-offs — — — — — (9 ) — (9 ) Recoveries — — — 2 1 10 — 13 Provisions (credits) (140 ) 2,000 5 17 78 (1 ) (234 ) 1,725 Ending balance, June 30, 2022 $ 3,671 $ 11,991 $ 46 $ 502 $ 641 $ 2 $ 23 $ 16,876 (Dollars in thousands) As of, and for the six months ended, June 30, 2022 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, January 1, 2022 $ 3,439 $ 9,415 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,597 Charge-offs — — — — — (66 ) — (66 ) Recoveries 13 65 24 2 2 14 — 120 Provisions 219 2,511 (16 ) 41 79 52 (661 ) 2,225 Ending balance, June 30, 2022 3,671 11,991 46 502 641 2 23 16,876 Individually evaluated for impairment 118 892 — — — — — 1,010 Ending balance: Collectively evaluated for impairment $ 3,553 $ 11,099 $ 46 $ 502 $ 641 $ 2 $ 23 $ 15,866 Loans receivables: Ending balance $ 549,881 $ 1,825,944 $ 376,117 $ 300,336 $ 118,479 $ 9,276 $ — $ 3,180,033 Ending balance: individually evaluated for impairment 507 2,106 — 1,314 99 — — 4,026 Ending balance: acquired with credit deterioration — 2,109 1,221 1,285 85 — — 4,700 Ending balance: collectively evaluated for impairment $ 549,374 $ 1,821,729 $ 374,896 $ 297,737 $ 118,295 $ 9,276 $ — $ 3,171,307 (Dollars in thousands) December 31, 2021 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Ending balance $ 3,439 $ 9,415 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,597 Ending balance: individually evaluated for impairment 67 121 — — — — — 188 Ending balance: collectively evaluated for impairment $ 3,372 $ 9,294 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,409 Loans receivable: Ending balance $ 619,562 $ 1,668,142 $ 372,734 $ 323,223 $ 110,306 $ 10,429 $ — $ 3,104,396 Ending balance: individually evaluated for impairment 308 1,141 22 1,259 2,377 — — 5,107 Ending balance: acquired with credit deterioration — 2,231 1,196 1,362 86 — — 4,875 Ending balance: collectively evaluated for impairment $ 619,254 $ 1,664,770 $ 371,516 $ 320,602 $ 107,843 $ 10,429 $ — $ 3,094,414 (Dollars in thousands) As of, and for the three months ended, June 30, 2021 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, April 1, 2021 $ 2,988 $ 8,944 $ 122 $ 438 $ 528 $ 1 $ 570 $ 13,591 Charge-offs — — (23 ) (7 ) — (9 ) — (39 ) Recoveries 1 10 — 1 — 2 — 14 Provisions (credits) 176 1,023 31 67 60 8 (215 ) 1,150 Ending balance, June 30, 2021 $ 3,165 $ 9,977 $ 130 $ 499 $ 588 $ 2 $ 355 $ 14,716 (Dollars in thousands) As of, and for the six months ended, June 30, 2021 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, January 1, 2021 3,066 8,655 134 429 507 1 590 $ 13,382 Charge-offs (859 ) — (23 ) (11 ) — (12 ) — (905 ) Recoveries 1 66 — 11 — 11 — 89 Provisions (credits) 957 1,256 19 70 81 2 (235 ) 2,150 Ending balance, June 30, 2021 3,165 9,977 130 499 588 2 355 14,716 Individually evaluated for impairment 62 1,332 — — — — — 1,394 Ending balance: collectively evaluated for impairment $ 3,103 $ 8,645 $ 130 $ 499 $ 588 $ 2 $ 355 $ 13,322 Loans receivables: Ending balance $ 783,106 $ 1,147,089 $ 282,776 $ 196,691 $ 77,272 $ 8,258 $ — $ 2,495,192 Ending balance: individually evaluated for impairment 218 3,673 23 759 2,339 — — 7,012 Ending balance: acquired with credit deterioration — 1,381 — 289 — — — 1,670 Ending balance: collectively evaluated for impairment $ 782,888 $ 1,142,035 $ 282,753 $ 195,643 $ 74,933 $ 8,258 $ — $ 2,486,510 Mid Penn entered into forbearance or modification agreements on loans currently classified as troubled debt restructures, and these agreements have resulted in additional principal repayment. The terms of these forbearance agreements vary and generally involve modifications from the original loan agreements, including either a reduction in the amount of principal payments for certain or extended periods, interest rate reductions, and/or the intent for the loan to be repaid as collateral is sold. Mid Penn’s troubled debt restructured loans at June 30, 2022 totaled $742,000 and included: (i) two accruing impaired residential mortgage loans to unrelated borrowers in compliance with the terms of the modifications totaling $422,000, and (ii) $320,000 of troubled debt restructurings attributable to six loans among four relationships which were classified as nonaccrual impaired based upon a collateral evaluation in accordance with the guidance on impaired loans. The balance of these nonaccrual impaired troubled debt restructured loans as of June 30, 2022 was comprised of $292,000 in commercial real estate loans amongst two borrowers and two residential mortgage loans for $28,000. As of June 30, 2022, there were no defaulted troubled debt restructured loans, as all troubled debt restructured loans were current with respect to their associated forbearance agreements. In addition to contractual paydowns, the decrease in Mid Penn’s troubled debt restructured loan balance since December 31, 2021 reflects the successful workout of two nonaccrual impaired loans. Mid Penn’s troubled debt restructured loans at December 31, 2021 totaled $819,000, and included (i) two accruing impaired residential mortgage loans to unrelated borrowers in compliance with the terms of the modifications totaling $435,000, and (ii) $384,000 of troubled debt restructurings attributable to eight loans among six relationships which were classified as nonaccrual impaired based upon a collateral evaluation in accordance with the guidance on impaired loans. The balance of these nonaccrual impaired troubled debt restructured loans as of December 31, 2021 was comprised of $320,000 in commercial real estate loans amongst two borrowers, one commercial real estate construction loan for $22,000, two residential mortgage loans for $37,000, and one commercial and industrial loan for $5,000. As of December 31, 2021, there were no defaulted troubled debt restructured loans, as all troubled debt restructured loans were current with respect to their associated forbearance agreements. There were also no defaults on troubled debt restructured loans within twelve months of restructure during 2021. The recorded investments in troubled debt restructured loans at June 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Pre-Modification Post-Modification June 30, 2022 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial real estate $ 1,213 $ 1,115 $ 292 Residential mortgage 647 645 450 $ 1,860 $ 1,760 $ 742 (Dollars in thousands) Pre-Modification Post-Modification December 31, 2021 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 8 $ 8 $ 5 Commercial real estate 1,214 1,115 320 Commercial real estate - construction 40 40 22 Residential mortgage 647 645 472 $ 1,909 $ 1,808 $ 819 The following tables provide activity for the accretable yield of acquired impaired loans from the Phoenix (March 2015), Scottdale (January 2018), First Priority (July 2018), and Riverview (November 2021) acquisitions for the three and six months ended June 30, 2022 and 2021. (Dollars in thousands) Three Months Ended June 30, 2022 2021 Accretable yield, beginning of period $ 499 $ 40 Accretable yield amortized to interest income (28 ) — Accretable yield, end of period $ 471 $ 40 (Dollars in thousands) Six Months Ended June 30, 2022 2021 Accretable yield, beginning of period $ 580 $ 40 Accretable yield amortized to interest income (109 ) - Accretable yield, end of period $ 471 $ 40 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 6 - Derivative Financial Instruments As of June 30, 2022 and December 31, 2021, Mid Penn did not designate any derivative financial instruments as formal hedging relationships. Mid Penn’s free-standing derivative financial instruments are required to be carried at their fair value on consolidated balance sheets. Mortgage Banking Derivative Financial Instruments In connection with its mortgage banking activities, Mid Penn enters into commitments to originate certain fixed-rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, Mid Penn enters into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. The notional amount and fair value of Mid Penn’s mortgage banking derivative financial instruments as of June 30, 2022 and December 31, 2021 are presented below. June 30, 2022 December 31, 2021 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 9,742 $ 83 $ 16,107 $ 56 Forward Commitments 16,193 (124 ) 20,521 32 The following table presents Mid Penn’s mortgage banking derivative financial instruments, their fair values, and their location in the consolidated balance sheets as of June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 (Dollars in thousands) Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Interest Rate Lock Commitments $ 83 $ — $ 56 $ — Forward Commitments — 124 32 — Total $ 83 $ 124 $ 88 $ — The following table presents Mid Penn’s mortgage banking derivative financial instruments and the amount of the net gains or losses recognized within other noninterest income on the consolidated statement of income for the three and six months ended June 30, 2022 and 2021. Three months ended Six months ended (Dollars in thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Interest Rate Lock Commitments $ 214 $ — $ 27 $ — Forward Commitments 324 — 1,077 — Total $ 538 $ — $ 1,104 $ — Loan-level Interest Rate Swaps Mid Penn enters into loan-level interest rate swaps with certain qualifying, creditworthy commercial loan customers to provide a loan pricing structure that meets both Mid Penn’s and the customer’s interest rate risk management needs. Mid Penn simultaneously enters into parallel interest rate swaps with a dealer counterparty, with identical notional amounts and terms. The net result of the offsetting customer and dealer counterparty swap agreements is that the customer pays a fixed rate of interest and Mid Penn receives a floating rate. Mid Penn’s loan-level i nterest rate swaps are considered derivatives but are not accounted for using hedge accounting. The fair value, notional amount, and collateral posted related to loan-level interest rate swaps are presented below. (Dollars in thousands) June 30, 2022 December 31, 2021 Interest Rate Swap Contracts - Commercial Loans: Fair Value (a) $ 8,487 $ 102 Notional Amount 112,389 109,577 Cash Collateral Posted (b) 1,600 1,600 (a) Represents the total of the equal and offsetting fair value assets and liabilities related to the loan level interest rate swaps (b) Included in cash and due from banks on the consolidated balance sheet The gross amounts of commercial loan swap derivatives, the amounts offset and the carrying values in the consolidated balance sheets, and the collateral pledged to support such agreements are presented below. (Dollars in thousands) June 30, 2022 December 31, 2021 Interest Rate Swap Contracts - Commercial Loans: Gross amounts recognized $ 8,487 $ 102 Gross amounts offset 8,487 102 Net Amounts Presented in the Consolidated Balance Sheets — — Gross amounts not offset: Financial instruments — — Cash collateral 1,600 1,600 Net Amounts $ 1,600 $ 1,600 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 7 - 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. Information on identifying circumstances when a transaction may not be considered orderly is also included within the guidance. 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. Inputs to valuation techniques refer to the assumptions that market participants would use in measuring the fair value of an 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 during the three and six months ended June 30, 2022 and 2021. The following tables illustrate the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels. Fair value measurements at June 30, 2022 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: June 30, 2022 (Level 1) (Level 2) (Level 3) Loans held for sale $ 9,574 $ 9,574 $ — Available-for-sale securities: U.S. Treasury and U.S. government agencies 34,026 — 34,026 — Mortgage-backed U.S. government agencies 155,433 — 155,433 — State and political subdivision obligations 3,669 — 3,669 — Corporate debt securities 25,570 — 25,570 — Other assets: Equity securities 454 454 — — Interest rate swap agreements 8,487 — 8,487 Mortgage banking derivative assets 83 — 83 — Total $ 237,296 $ 454 $ 236,842 $ — Fair value measurements at December 31, 2021 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2021 (Level 1) (Level 2) (Level 3) Loans held for sale $ 11,514 $ — $ 11,514 $ — Available-for-sale securities: Mortgage-backed U.S. government agencies 49,480 — 49,480 — State and political subdivision obligations 3,914 — 3,914 — Corporate debt securities 9,468 — 9,468 — Other assets: Equity securities 500 500 — — Interest rate swap agreements 629 — 629 — Mortgage banking derivative assets 88 — 88 — Total $ 75,593 $ 500 $ 75,093 $ — 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 June 30, 2022 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: June 30, 2022 (Level 1) (Level 2) (Level 3) Impaired Loans $ 1,043 $ — $ — $ 1,043 Fair value measurements at December 31, 2021 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2021 (Level 1) (Level 2) (Level 3) Impaired Loans $ 508 $ — $ — $ 508 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) June 30, 2022 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 1,043 Appraisal of collateral (a), (b) Appraisal adjustments (b) 22% - 77% 49% (Dollars in thousands) December 31, 2021 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 508 Appraisal of collateral (a), (b) Appraisal adjustments (b) 21% - 69% 30% (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. There were no changes in unrealized gains and losses included in other comprehensive income during the six months ended June 30, 2022 or 2021 related to Level 3 recurring fair value measurements, as Mid Penn has no assets measured at fair value on a Level 3 recurring basis. Mid Penn uses the following methodologies and assumptions to estimate the fair value of certain assets and liabilities. Securities The fair value of equity securities and debt securities classified as available for sale is determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather, relying on the securities’ relationship to other benchmark quoted prices. Mortgage Banking Derivative Assets Mortgage banking derivative assets represent the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors and the fair value of interest rate swaps. The fair values of the Bank’s interest rate locks, forward commitments and interest rate swaps represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. These characteristics classify interest rate swap agreements as Level 2. See "Note 6 - Derivative Financial Instruments," for additional information. Interest Rate Swap Agreements Interest rate swap agreements are measured by alternative pricing sources with reasonable levels of price transparency in markets that are not active. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These markets do however have comparable, observable inputs in which an alternative pricing source values these assets in order to arrive at a fair market value. These characteristics classify interest rate swap agreements as Level 2. Impaired Loans (included in “Net Loans and Leases” in the following tables) All performing troubled debt restructured loans and loans classified as nonaccrual are deemed to be impaired, and all of these loans are considered collateral dependent; therefore, all of Mid Penn’s impaired loans, whether reporting a specific allowance allocation or not, are considered collateral dependent. It is Mid Penn’s policy to obtain updated third-party collateral valuations on all impaired loans secured by real estate as soon as practically possible following the credit being classified as substandard nonaccrual. Prior to receipt of the updated real estate valuation, Mid Penn will use existing real estate valuations to determine any potential allowance for loan and lease loss issues and will update the allowance impact calculation upon receipt of the updated real estate 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, either in a positive or negative way, due to the passage of time or some other change in one or more valuation inputs. Collateral values for impaired loans will be reassessed by management at least every 12 months for possible revaluation by an independent third party. 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. The following table summarizes the carrying value and fair value of financial instruments at June 30, 2022 and December 31, 2021. (Dollars in thousands) June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 236,786 $ 236,786 $ 913,572 $ 913,572 Available-for-sale investment securities 218,698 218,698 62,862 62,862 Held-to-maturity investment securities 399,032 365,288 329,257 330,626 Equity securities 454 454 500 500 Loans held for sale 9,574 9,574 11,514 11,787 Net loans and leases 3,163,157 3,130,912 3,089,799 3,118,416 Restricted investment in bank stocks 4,234 4,234 9,134 9,134 Accrued interest receivable 12,902 12,902 10,779 10,779 Interest rate swap agreements 8,487 8,487 629 629 Mortgage banking derivative assets 83 83 88 88 Financial liabilities: Deposits $ 3,702,587 $ 3,692,662 $ 4,002,016 $ 4,046,217 Long-term debt (a) 1,256 317 77,890 77,455 Subordinated debt 73,995 70,684 74,274 74,553 Accrued interest payable 1,542 1,542 1,791 1,791 Mortgage banking derivative liabilities 124 124 — — (a) Long-term debt excludes finance lease obligations. The Bank’s outstanding and unfunded credit commitments and financial standby letters of credit were deemed to have no significant fair value as of June 30, 2022 and December 31, 2021. The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of June 30, 2022 and December 31, 2021. Carrying values approximate fair values for cash and cash equivalents, restricted investment in bank stocks, 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 June 30, 2022 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 399,032 $ 365,288 $ — $ 365,288 $ — Net loans and leases 3,163,157 3,130,912 — — 3,130,912 Financial instruments - liabilities Deposits $ 3,702,587 $ 3,692,662 $ — $ 3,692,662 $ — Long-term debt (a) 1,256 317 — 317 — Subordinated debt 73,995 70,684 — 70,684 — 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, 2021 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 329,257 $ 330,626 $ — $ 330,626 $ — Net loans and leases 3,089,799 3,118,416 — — 3,118,416 Financial instruments - liabilities Deposits $ 4,002,016 $ 4,046,217 $ — $ 4,046,217 $ — Long-term debt (a) 77,890 77,455 — 77,455 — Subordinated debt 74,274 74,553 — 74,553 — (a) Long-term debt excludes finance lease obligations. |
Guarantees, Commitments, and Co
Guarantees, Commitments, and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Guarantees, Commitments, and Contingencies | Note 8 - Guarantees, Commitments, and Contingencies 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 $54,179,000 and $55,609,000 of standby letters of credit outstanding as of June 30, 2022 and December 31, 2021, respectively. Mid Penn does not anticipate any losses because of these transactions. The amount of the liability as of June 30, 2022 and December 31, 2021 for payment under standby letters of credit issued was not considered material. Commitments As of June 30, 2021, Mid Penn’s Board of Directors had approved Mid Penn Bank to enter into a commitment to purchase a limited partnership interest in a low-income housing project to construct thirty-nine apartments and common amenities in Cumberland County, Pennsylvania. All of the units are expected to qualify for Federal Low-Income Housing Tax Credits (“LIHTCs”) as provided for in Section 42 of the Internal Revenue Code of 1986, as amended. Mid Penn’s limited partner capital contribution commitment is expected to be $10,805,000, which will be paid in installments over the course of construction of the low-income housing facilities. The investment in the limited partnership will be reported in other assets on the balance sheet and amortized over a ten-year period. The project has been conditionally awarded $1,205,000 in annual LIHTCs by the Pennsylvania Housing Finance Agency, with a total anticipated LIHTC amount of $12,046,000 to be received by Mid Penn over the ten-year As a result of the Riverview acquisition on November 30, 2021, Mid Penn assumed a commitment to purchase a limited partnership interest in a low-income housing project to preserve and rehabilitate three buildings consisting of seventeen apartments and two commercial shops in Schuylkill County, Pennsylvania. All the units are expected to qualify for LIHTCs. Mid Penn’s limited partner capital contribution commitment is expected to be $4,356,000, which will be paid in installments over the course of construction of the low-income housing facilities. The investment in the limited partnership will be reported in other assets on the balance sheet and amortized over a ten-year ten-year Contingencies As of June 30, 2022, Mid Penn had received $42,520,000 of nonrefundable loan processing fees related to the loans disbursed as a result of Mid Penn’s participation in the SBA’s PPP, consisting of (i) $20,883,000 of loan processing fees received during the year ended December 31, 2020, (ii) $17,997,000 of loan processing fees received during the year ended December 31, 2021, and (iii) $3,640,000 during the six months ended June 30, 2022. These PPP loan processing fees, and any offsetting loan origination costs, were deferred in accordance with FASB ASC 310-20, Receivables—Nonrefundable Fees and Other Costs The processing fees received from the SBA for administering the application for, and disbursing of, the PPP loans may be subject to clawback (or if the SBA has not yet paid the fee, the fee may not be paid), after full disbursement of a PPP loan if (i) the PPP loan is cancelled or voluntarily terminated and repaid after disbursement but before the borrower certification safe harbor date, (ii) the PPP loan is cancelled, terminated, or repaid after disbursement (and after the borrower certification safe harbor date) because the SBA conducted a loan review and determined that the borrower was ineligible for a PPP loan, or (iii) the lender has not fulfilled its obligations under the PPP regulations. As of June 30, 2022, Mid Penn is not aware of any PPP loans outstanding, for which fees have been received from the SBA, that have been cancelled, terminated, or repaid due to a borrower being determined to be ineligible for a PPP loan. Litigation Mid Penn is subject to lawsuits and claims arising out of its normal conduct of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition of Mid Penn. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 - Debt Short-term FHLB and Correspondent Bank Borrowings Short-term borrowings generally consist of federal funds purchased and advances from the FHLB with an original maturity of less than a year. Federal funds purchased from correspondent banks mature in one business day and reprice daily based on the Federal Funds rate. Advances from the FHLB are collateralized by the Bank’s investment in the common stock of the FHLB and by a blanket lien on selected loan receivables comprised principally of real estate secured loans within the Bank’s portfolio totaling $2,024,652,000 at June 30, 2022. The Bank had a short-term borrowing capacity from the FHLB as of June 30, 2022 up to the Bank’s unused borrowing capacity of $1,206,604,000 (equal to $1,414,751,000 of maximum borrowing capacity, less the aggregate amount of FHLB letter of credits securing public funds deposits, and other FHLB advances and obligations outstanding) upon satisfaction of any stock purchase requirements of the FHLB. No draws were outstanding on short-term FHLB or correspondent bank borrowings as of June 30, 2022 and December 31, 2021. The Bank also has unused overnight lines of credit with other correspondent banks amounting to $35,000,000 at June 30, 2022. No draws have been made on these lines of credit and accordingly the balance was zero on both June 30, 2022 and December 31, 2021. Short-term PPPLF Borrowings As of June 30, 2022 and December 31, 2021, the Bank paid all funding obtained from the Federal Reserve through the Paycheck Protection Program Liquidity Facility (“PPPLF”). The PPPLF allowed banks to pledge PPP loans as collateral to borrow funds for up to a term of five years (to match the term of the respective PPP loans) at an interest rate of 0.35%. Long-term Debt As of June 30, 2022, and December 31, 2021, the Bank had long-term debt outstanding in the amount of $4,592,000 and $81,270,000, respectively, consisting primarily of FHLB fixed rate instruments, as well as one finance lease obligation. As a member of the FHLB, the Bank can access a number of credit products which are utilized to provide liquidity. The FHLB fixed rate instruments obtained by the Bank are secured under the terms of a blanket collateral agreement with the FHLB consisting of FHLB stock and qualifying Bank loan receivables, principally real estate secured loans. The Bank also obtains letters of credit from the FHLB to secure certain public fund deposits of municipality and school district customers who agree to use of the FHLB letters of credit as a legally allowable alternative to investment pledging. These FHLB letter of credit commitments totaled $205,100,000 as of June 30, 2022 and $450,850,000 as of December 31, 2021. The following table presents a summary of long-term debt as of June 30, 2022 and December 31, 2021. (Dollars in thousands) June 30, 2022 December 31, 2021 FHLB fixed rate instruments: Due April 2022, 0.86343% $ — $ 70,000 Due March 2023, 0.7514% — 6,500 Due August 2026, 4.80% 1,222 1,353 Due February 2027, 6.71% 34 37 Total FHLB fixed rate instruments 1,256 77,890 Lease obligations included in long-term debt 3,336 3,380 Total long-term debt $ 4,592 $ 81,270 |
Subordinated Debt and Trust Pre
Subordinated Debt and Trust Preferred Securities | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Subordinated Debt and Trust Preferred Securities | Note 10 - Subordinated Debt and Trust Preferred Securities Subordinated Debt Assumed November 2021 with the Riverview Acquisition On November 30, 2021, Mid Penn completed its acquisition of Riverview and assumed $25,000,000 of Subordinated Notes (the “Riverview Notes”). In accordance with purchase accounting principles, the Riverview Notes were assigned a fair value premium of $2,302,000. The notes are treated as Tier 2 capital for regulatory reporting purposes. The Riverview Notes were entered into by Riverview on October 6, 2020 with certain qualified institutional buyers and accredited institutional investors. The Riverview Notes have a maturity date of October 15, 2030 and initially bear interest, payable semi-annually, at a fixed annual rate of 5.75% per annum until October 15, 2025. Commencing on that date, the interest rate applicable to the outstanding principal amount due will be reset quarterly to an interest rate per annum equal to the then current three-month secured overnight financing rate (“SOFR”) plus 563 basis points, payable quarterly until maturity. Mid Penn may redeem the Notes at par, in whole or in part, at its option, anytime beginning on October 15, 2025. Trust Preferred Securities Assumed November 2021 with the Riverview Acquisition As a result of the merger with Riverview, Mid Penn assumed the subordinated debentures that Riverview had assumed in its acquisition of CBT Financial Corp. (“CBT”) on October 1, 2017 (the “CBT 2017 Notes”). In 2003, a trust formed by CBT issued $5,155,000 of floating rate trust preferred securities as part of a pooled offering of such securities, which are adjusted quarterly to the three-month LIBOR rate plus 2.95%. CBT issued subordinated debentures to the trust in exchange for ownership of all of the common securities of the trust and the proceeds of the offering; the debentures represent the sole asset of the trust. CBT became eligible to redeem the subordinated debentures, in whole but not in part, beginning in 2008 at a price of 100% of face value. The subordinated debentures must be redeemed no later than 2033. Similarly, in 2005, a trust formed by CBT issued $4,124,000 of fixed rate trust preferred securities as part of a pooled offering of such securities (the “CBT 2015 Notes”). CBT issued subordinated debentures to the trust in exchange for ownership of all of the common securities of the trust and the proceeds of the offering; the debentures represent the sole asset of the trust. CBT became eligible to redeem the subordinated debentures, in whole but not in part, beginning in 2010 at a price of 100% of face value. Interest payments on the debentures may be deferred at any time at the election of Mid Penn for up to 20 consecutive quarterly periods. Interest on the debentures will accrue during the extension period, and all accrued principal and interest must be paid at the end of the extension period. During an extension period, Mid Penn may not declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to any of Mid Penn’s capital stock. In accordance with purchase accounting principles, the CBT 2017 Notes and CBT 2015 Notes assumed from Riverview were assigned a fair value premium of $6,000. The subordinated debentures are treated as Tier 1 capital for regulatory reporting purposes. Subordinated Debt Issued December 2020 On December 22, 2020, Mid Penn entered into agreements for and sold, at 100% of their principal amount, an aggregate of $12,150,000 of its Subordinated Notes due December 2030 (the “December 2020 Notes”) on a private placement basis to accredited investors. The December 2020 Notes are treated as Tier 2 capital for regulatory capital purposes. The December 2020 Notes bear interest at a rate of 4.5% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the December 2020 Notes are floating will at no time be less than 4.5%. Interest is payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on March 31, 2021. The December 2020 Notes will mature on December 31, 2030 and are redeemable, in whole or in part, without premium or penalty, on any interest payment date on or after December 31, 2025 and prior to December 31, 2030, subject to any required regulatory approvals. Additionally, if (i) all or any portion of the December 2020 Notes cease to be deemed Tier 2 Capital, (ii) interest on the December 2020 Notes fails to be deductible for United States federal income tax purposes, or (iii) Mid Penn will be considered an “investment company,” Mid Penn may redeem the December 2020 Notes, in whole but not in part, by giving 10 days’ notice to the holders of the December 2020 Notes. In the event of a redemption described in the previous sentence, Mid Penn will redeem the December 2020 Notes at 100% of the principal amount of the December 2020 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the December 2020 Notes may not accelerate the maturity of the December 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar event of Mid Penn or Mid Penn Bank, its principal banking subsidiary. Related parties held $750,000 of the December 2020 Notes as of June 30, 2022 and December 31, 2021. Subordinated Debt Issued March 2020 On March 20, 2020, Mid Penn Bancorp, Inc. entered into agreements with accredited investors who purchased $15,000,000 aggregate principal amount of Mid Penn Subordinated Notes due March 2030 (the “March 2020 Notes”). As a result of Mid Penn’s merger with Riverview on November 30, 2021, $6,870,000 of the March 2020 Notes balance was redeemed as Riverview was a holder of the March 2020 Notes. The March 2020 Notes bear interest at a rate of 4.0% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the March 2020 Notes are floating will at no time be less than 4.25%. Interest is payable semi-annually in arrears on June 30 and December 30 of each year, beginning on June 30, 2020, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 30, June 30, September 30 and December 30. The March 2020 Notes will mature on March 30, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after March 30, 2025 and prior to March 30, 2030. Additionally, if all or any portion of the March 2020 Notes cease to be deemed Tier 2 Capital, Mid Penn may redeem, on any interest payment date, all or part of the 2020 Notes. In the event of a redemption described in the previous sentence, Mid Penn will redeem the March 2020 Notes at 100% of the principal amount of the March 2020 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the March 2020 Notes may not accelerate the maturity of the March 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar event of Mid Penn or Mid Penn Bank, its principal banking subsidiary. Related parties held $1,700,000 of the March 2020 Notes as of June 30, 2022 and December 31, 2021. Subordinated Debt Issued December 2017 On December 19, 2017, Mid Penn Bancorp, Inc. entered into agreements with investors to purchase $10,000,000 aggregate principal amount of its Subordinated Notes due 2028 (the “2017 Notes”). The 2017 Notes are intended to be treated as Tier 2 capital for regulatory capital purposes. The offering closed in December 2017. The 2017 Notes bear interest at a rate of 5.25% per year for the first five years and then float at the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no time be less than 5.0%. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018, for the first five years after issuance and will be payable quarterly in arrears thereafter on January 15, April 15, July 15, and October 15. The 2017 Notes will mature on January 1, 2028 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 21, 2022, and prior to January 1, 2028. Additionally, Mid Penn may redeem the 2017 Notes in whole at any time, or in part from time to time, upon at least 30 days’ notice if: (i) a change or prospective change in law occurs that could prevent Mid Penn from deducting interest payable on the 2017 Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the 2017 Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) Mid Penn becomes required to register as an investment company under the Investment Company Act of 1940, as amended. In the event of a redemption described in the previous sentence, Mid Penn will redeem the 2017 Notes at 100% of the principal amount of the 2017 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. Holders of the 2017 Notes may not accelerate the maturity of the 2017 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar event of Mid Penn or Mid Penn Bank, its principal banking subsidiary. Related parties held $1,450,000 of the 2017 Notes as of June 30, 2022 and December 31, 2021. Subordinated Debt Issued December 2015 On December 9, 2015, Mid Penn Bancorp, Inc. sold $7,500,000 aggregate principal amount of Subordinated Debt (the “2015 Notes”) due in 2025. Given that the 2015 Notes are in the sixth year since issuance, eighty percent of the principal balance of the notes is treated as Tier 2 capital for regulatory capital purposes as of June 30, 2022. The 2015 Holders of the 2015 Notes may not accelerate the maturity of the 2015 Notes, except upon Mid Penn’s or Mid Penn Bank’s bankruptcy, insolvency, liquidation, receivership or similar event. Related parties held $1,930,000 of the 2015 Notes as of June 30, 2022 and December 31, 2021. ASC Subtopic 835-30, Simplifying the Presentation of Debt Issuance Costs |
Defined Benefit Plans
Defined Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract] | |
Defined Benefit Plans | Note 11 - 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. Mid Penn also sponsors a defined benefit healthcare plan that provides post-retirement medical benefits and life insurance to qualifying full-time employees. These healthcare and life insurance plans are noncontributory and each plan uses a December 31 measurement date. As a result of the acquisition of Scottdale on January 8, 2018, Mid Penn assumed a noncontributory defined benefit pension plan covering certain former employees of Scottdale. Mid Penn does not expect any necessary contributions to this defined benefit plan during the year ended 2022. A December 31 measurement date for the plan is used. The components of net periodic benefit costs from these defined benefit plans are as follows: Three Months Ended June 30, (Dollars in thousands) Pension Benefits Other Benefits 2022 2021 2022 2021 Service cost $ 30 $ 33 $ 6 $ — Interest cost 41 40 1 2 Expected return on plan assets (59 ) (57 ) — — Accretion of prior service cost — — (5 ) (5 ) Amortization of net (gain) loss (2 ) — 1 4 Net periodic benefit expense $ 10 $ 16 $ 3 $ 1 Six Months Ended June 30, (Dollars in thousands) Pension Benefits Other Benefits 2022 2021 2022 2021 Service cost $ 72 $ 65 $ 10 $ 1 Interest cost 87 80 18 4 Expected return on plan assets (118 ) (113 ) — — Accretion of prior service cost — — (10 ) (10 ) Amortization of net (gain) loss (4 ) — 5 4 Settlement gain — (49 ) — — Net periodic benefit expense (income) $ 37 $ (17 ) $ 23 $ (1 ) Service costs are reported as a component of salaries and employee benefits on the consolidated statement of income, while interest costs, expected return on plan assets and amortization (accretion) of prior service cost are reported as a component of other income. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2022 | |
Common Stock Number Of Shares Par Value And Other Disclosures [Abstract] | |
Common Stock | Note 12 - Common Stock Treasury Stock Repurchase Program Mid Penn adopted a treasury stock repurchase program (“Program”) initially effective March 19, 2020, and the buyback remains available as it was extended through March 19, 2023 by Mid Penn’s Board of Directors on March 23, 2022. The Program authorized the repurchase of up to $15,000,000 of Mid Penn’s outstanding common stock, which represented approximately 3.5% of the issued shares based on Mid Penn’s closing stock price and shares issued as of March 31, 2022. Under the Program, Mid Penn may conduct repurchases of its common stock through open market transactions (which may be by means of a trading plan adopted under SEC Rule 10b5-1) or in privately negotiated transactions. Repurchases under the Program are made at the discretion of management and are subject to market conditions and other factors. There is no guarantee as to the exact number of shares that Mid Penn may repurchase. The Program may be modified, suspended or terminated at any time, in Mid Penn’s discretion, based upon a number of factors, including liquidity, market conditions, the availability of alternative investment opportunities and other factors Mid Penn deems appropriate. The Program does not obligate Mid Penn to repurchase any shares. During the second quarter of 2022, Mid Penn repurchased 103,912 shares of outstanding common stock at an average price of $26.88 under the Program. As of June 30, 2022, Mid Penn had repurchased 202,364 shares of common stock at an average price of $23.31 per share under the Program. The Program has $10,284,000 remaining available for repurchase. Shares Converted Pursuant to Riverview Merger As announced on a Form 8-K on December 1, 2021, pursuant to the terms of the merger agreement, each share of Riverview common stock issued and outstanding as of November 30, 2021 was converted into the right to receive 0.4833 shares of Mid Penn common stock. Cash was paid to Riverview shareholders in lieu of any fractional shares. As a result of the merger, Mid Penn issued 4,519,776 shares of Mid Penn common stock. The additional shares issued on November 30, 2021 significantly impacted the weighted average number of shares outstanding used for the earnings per share calculation for the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021. Underwritten Public Follow-On Common Stock Offering As previously announced on a Form 8-K on May 4, 2021, Mid Penn completed an underwritten public offering of 2,990,000 shares of common stock at a price of $25.00 per share, with the aggregate gross proceeds of the offering totaling $74,750,000 before underwriting discounts and offering expenses. The net proceeds of the offering, after deducting $4,512,000 of combined underwriting discounts and other offering expenses, were $70,238,000. The additional shares issued on May 4, 2021 significantly impacted the weighted average number of shares outstanding used for the earnings per share calculation for the three and six months ended June 30, 2022 compared to the three and six months ended June 30, 2021. Dividend Reinvestment Plan Under Mid Penn’s amended and restated dividend reinvestment plan (“DRIP”), 330,750 shares of Mid Penn’s authorized but unissued common stock are reserved for issuance. The DRIP also allows for voluntary cash payments, within specified limits, to be used for the purchase of additional shares. Restricted Stock Plan Under Mid Penn’s 2014 Restricted Stock Plan, which was amended in 2020, Mid Penn may grant awards not exceeding, in the aggregate, 200,000 shares of common stock. The Plan was established for employees and directors of Mid Penn and the Bank, selected by the Compensation Committee of the Board of Directors, to align the interest of plan participants with those of Mid Penn’s shareholders. The plan provides those persons who have a responsibility for its growth with additional incentives by allowing them to acquire an ownership interest in Mid Penn and thereby encouraging them to contribute to the success of the company. As of June 30, 2022, a total of 164,537 restricted shares were granted under the Plan, of which 5,073 shares were forfeited and available for reissuance, 83,574 shares were vested, and the remaining 75,890 shares were unvested. Share-based compensation expense relating to restricted stock is calculated using grant date fair value and is recognized on a straight-line basis over the vesting periods of the awards. Restricted shares granted to employees vest in equal amounts on the anniversary of the grant date over the vesting period and the expense is a component of salaries and benefits expense on the consolidated statement of income. The employee grant vesting period is determined by the terms of each respective grant, with vesting periods generally between one and four years. Restricted shares granted to directors have a twelve-month |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Investment Securities | 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 pledging requirements, and that may be sold in response to liquidity needs, changes in interest rates, resultant prepayment risk, reductions in pledging levels, and other factors related to effective portfolio management. Securities to be held to maturity are carried at amortized cost. For available-for-sale debt securities, realized gains and losses on dispositions are based on the difference between net proceeds and the amortized cost of the securities sold, using the specific identification method. Unrealized gains and losses on debt securities are based on the difference between the amortized cost and fair value of each security as of the respective reporting date. Unrealized gains and losses are credited or charged to other comprehensive income on an after-tax basis, whereas realized gains and losses flow through Mid Penn’s consolidated statement of income for the respective period. ASC Topic 320, Investments – Debt and Equity Securities In instances when a determination is made that an other-than-temporary impairment of a debt security exists, but the Corporation 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. |
Equity Securities | Equity Securities In accordance with ASC Topic 825 , Financial Instruments |
Loans | Loans 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 and lease 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 Loans 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% 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 Loans 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 Loans 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% 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% 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, Federal Home Loan Bank, 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 the required 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 funded and held in the Bank’s portfolio, the interest rate on the residential mortgage would be increased to compensate for the added portfolio risk. Consumer Loans, Including Home Equity Credits 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% 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 ten 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. Payroll Protection Program (“PPP”) Loans Included in total loans as of June 30, 2022, within the commercial and industrial loan portfolio classification, are $4,966,000 of PPP loans, net of deferred fees, which, as of June 30, 2022, were still outstanding as the remaining borrowers and the Small Business Administration (“SBA”) had not yet completed the loan forgiveness and repayment process. Comparatively, as of December 31, 2021, Mid Penn had $111,286,000 of PPP loans outstanding, net of deferred fees. Mid Penn has been a significant participating lender under the PPP, which was originally created when the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law on March 27, 2020, and extended by the signing of the Consolidated Appropriations Act, 2021 into law on December 27, 2020, and further extended to May 31, 2021 by the PPP Extension Act of 2021. The PPP loans, which are 100% guaranteed by the SBA, have up to a five-year term to maturity and carry a low interest rate of 1% throughout the loan term. The SBA also provided a processing fee per loan to financial institutions who participated in the PPP, with the amount of such fee generally ranging from 1% to 5% as pre-determined by the SBA dependent upon the size of each respective credit. As of June 30, 2022, Mid Penn had received $42,520,000 of nonrefundable loan processing fees related to the loans disbursed as a result of Mid Penn’s participation in the PPP initiative, consisting of (i) $20,883,000 of loan processing fees received related to PPP loans funded during the year ended December 31, 2020, (ii) $ 17,997,000 of loan processing fees received related to PPP loans funded during the year ended December 31, 2021, and (iii) $ 3,640,000 during the six months ended June 30, 2022. In addition to receiving and deferring the processing fees, Mid Penn recorded and deferred related loan origination costs, and in accordance with ASC 310-20, Receivables—Nonrefundable Fees and Other Costs, the processing fees and loan origination costs are being amortized to interest and fees on loans and leases on the c onsolidated s tatements of i ncome over the life of each respective loan. As of June 30 , 2022, Mid Penn had $ 171,000 of PPP deferred loan processing fees not yet realized as income. Comparatively, as of December 31, 2021, Mid Penn had PPP deferred loan processing fees not yet realized as income totaling $ 3,811,000 . Mid Penn recognized $ 3,640,000 of PPP processing fees during the quarter ended June 30 , 2022, compared to $ 6,244,000 of PPP processing fees for the same period of 2021. PPP processing fees are reflected within interest and fees on loans and leases on the c onsolidated s tatements of i ncome. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The allowance for loan and lease losses (“allowance”) and the related provision reflect Mid Penn’s continued application of the incurred loss method for estimating credit losses as Mid Penn is not required to adopt the current expected credit loss (“CECL”) accounting standard until January 1, 2023, and Mid Penn has not elected to early adopt CECL. The 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 $74,000 at June 30, 2022 and $72,000 at December 31, 2021. 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, or earlier in the event of either 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 by management to be adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on Mid Penn’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value, or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class, including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include changes in economic conditions, fluctuations in loan quality measures, changes in collateral values, changes in the experience of the lending staff and loan review systems, changes in lending policies and procedures (including underwriting standards), changes in the mix and volume of loans originated, the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing loan portfolio, shifting industry or portfolio concentrations, and other relevant factors. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in relevant analyses and a narrative accompanying the allowance for loan and lease loss calculation. The unallocated component of the allowance for loan and lease losses covers several considerations that are not specifically measurable through the specific and general components. For example, at times Mid Penn could face increasing credit risks and uncertainties, not yet reflected in recent historical losses or qualitative factor assessments, associated with unpredictable changes in economic growth or business conditions in our markets or for certain industries in which we have commercial loan borrowers, or unanticipated stresses to the values of real estate held as collateral, or unforeseeable effects on the portfolio from other influences, inducing the long-term impact of the pandemic. Any or all of these additional issues can adversely affect our borrowers’ ability to timely repay their loans. 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 classified as substandard nonaccrual, doubtful or having probable loss will first have a collateral evaluation completed in accordance with the guidance on impaired loans. Once the collateral evaluation has been completed, a specific allocation of allowance is made based upon the results of the evaluation. The remaining balance remains a 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 determined to be impaired will also have an initial collateral evaluation completed in accordance with the guidance on impaired loans. An updated real estate valuation is ordered, and the collateral evaluation is modified to reflect any variations in value. A specific allocation of allowance is made for any anticipated collateral shortfall. The remaining balance remains a 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. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of either bankruptcy or if there is an amount deemed uncollectible. The collateral shortfall of the consumer loan is recommended for charge-off at this point. As noted above, Mid Penn assesses a specific allocation for commercial loans and commercial real estate loans. The remaining balance remains a 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 collateral valuations on all impaired loans secured by real estate as soon as practically possible following 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, the independent third-party market valuations on the subject property obtained by Mid Penn as soon as practically possible following the credit being placed on 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. 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 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 and lease 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. No such additions were required from any recent examinations. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan and lease losses is adequate. Mid Penn had $4,966,000 and $111,286,000 of PPP loans outstanding, net of deferred fees, as of June 30, 2022 and December 31, 2021, respectively, which though they are classified as commercial and industrial credits, are guaranteed by the Small Business Administration and, thus, have no loss reserve allocated to them. |
Acquired Loans | Acquired Loans Loans that Mid Penn acquires in connection with business combinations are recorded at fair value with no carryover of the acquired entity’s related allowance for loan and lease losses. Loans acquired at fair value and included in the balance of loans and leases, net of unearned interest, on the consolidated balance sheets totaled $895,855,000 and $1,010,039,000 as of June 30, 2022 and December 31, 2021, respectively. The fair value of the acquired loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. 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 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 and lease losses established at the acquisition date for acquired performing loans. An allowance for loan and lease 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 at the date of acquisition and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. |
Mortgage Banking Derivative Financial Instruments | Mortgage Banking Derivative Financial Instruments During the third quarter of 2021, Mid Penn began using mortgage banking derivative financial instruments as part of our overall strategy to manage exposure to market risk within our mortgage banking operations, primarily due to fluctuations in interest rates, and to reduce the risk of price volatility of loans in the commitment phase. In connection with its mortgage banking activities, Mid Penn enters into interest rate lock commitments (IRLCs) to extend credit to a mortgage applicant within a specified period of time, provided certain specified terms and conditions are met, and with both the interest rate and the maximum loan amount set prior to funding. This loan commitment binds Mid Penn (subject to approval of the loan) to fund the loan at the specified rate, regardless of whether interest rates have changed between the commitment date and the loan funding date. Outstanding IRLCs may expose Mid Penn to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. As such, outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of the commitment through the loan funding date or expiration date. The IRLC does not contractually obligate the borrower to close the loan, regardless of whether Mid Penn approves the loan. Mid Penn originates all mortgage loans with the intention that the loans will be held for sale in the secondary market. Mid Penn enters into forward mortgage loan sales commitments shortly after extending an IRLC to the borrower to mitigate interest rate risk related to the IRLC for mortgage loans originated for sale. Mid Penn enters into mortgage loan sales commitments as either (i) a mandatory commitment, meaning that the loan must be delivered at an agreed-upon price within a specified timeframe, or (ii) a best-effort commitment, meaning that the loan will be delivered if and when Mandatory forward loan sales commitments are accounted for as freestanding derivative instruments and are carried at fair value equal to the amount required to settle the commitment as of the reporting date based on the underlying mortgage loans and the probability of commitments being exercised. Gross derivative assets and liabilities are recorded within other assets and other liabilities on the consolidated balance sheet, with changes in fair value during the period recorded in other noninterest income in the consolidated statements of income. Best effort forward sales commitments are financial instruments which are carried at fair value under ASC 825 – Financial Instruments. Fair value is estimated as the amount required to settle the commitment as of the reporting date, which is based on the underlying mortgage loans and the probability of commitments being exercised. Gross derivative assets and liabilities are recorded within other assets and other liabilities on the consolidated balance sheet, with changes in fair value during the period in other noninterest income in the consolidated statements of income. |
Loan-Level Interest Rate Swaps | Loan-Level Interest Rate Swaps Mid Penn enters into loan-level interest rate swaps (“swaps”) to facilitate certain customer transactions and meet their financing needs. These swaps qualify as derivatives but are not designated as hedging instruments. A loan-level interest rate swap is a contract in which the series of interest rate flows (fixed and variable) are exchanged over the term of a loan with certain qualifying commercial loan customers, and Mid Penn simultaneously enters into an interest rate swap with a dealer counterparty with identical notional amounts and terms. The net result of these swaps is that the customer pays a fixed interest rate and Mid Penn receives a floating interest rate. The swap positions with customers are equally offset with the dealer counterparties to minimize the potential impact on Mid Penn’s financial statements. Pursuant to our agreements with the dealer counterparties, we may receive collateral or may be required to post collateral based upon mark-to-market positions. Beyond unsecured threshold levels, collateral in the form of cash or securities may be made available to counterparties of interest rate swap transactions. Based upon our current positions and related future collateral requirements relating to them, we believe any effect on our cash flow or liquidity position to be immaterial. Derivatives contain an element of credit risk, including the possibility that we will incur a loss because a party to the agreements, which may be a dealer counterparty or a customer, fails to meet its contractual obligations. Derivative contracts may only be executed with dealer counterparties as approved by our Board of Directors. Similarly, derivatives with customers may only be executed with customers within credit exposure limits as approved by our Board of Directors. Loan-level interest rate swaps are considered derivatives but are not accounted for using hedge accounting. |
Bank Premises and Equipment Held for Sale | Bank Premises and Equipment Held for Sale Bank premises and equipment designated as held for sale are carried at the lower of cost or market value, and at June 30, 2022 and December 31, 2021, totaled $2,574,000 and $3,907,000, respectively. These balances are related to the December 7, 2021 announcement of a Retail Network Optimization Plan under which the Bank announced its intention to close certain retail locations throughout its expanded footprint. The branch closures occurred on March 4, 2022. Adjustments to record these held for sale assets at the lower of cost or fair value related to the held for sale properties were included in post-acquisition restructuring expenses and totaled $874,000 for the year ended December 31, 2021. During the six months ended June 30, 2022, Mid Penn had a write-off expense of obsolete bank premises and equipment held for sale of $705,000, as a result of branch closures during the first quarter of 2022, as previously announced on a Form 8-K dated December 7, 2021. There were no impairment charges recorded during the six months ended June 30, 2022 or 2021. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Foreclosed assets held for sale consist primarily of real estate acquired through, or in lieu of, foreclosure in settlement of debt, and are recorded at fair value less the selling costs at the date of transfer, establishing a new cost basis. Any valuation adjustments required at the date of transfer are charged to the allowance for loan and lease losses. Subsequent to acquisition, foreclosed assets are carried at fair value less estimated costs of disposal, based upon periodic evaluations that consider changes in market conditions and development and disposal costs. Operating results from assets acquired in satisfaction of debt, including rental income less operating costs and gains or losses on the sale of, or the periodic evaluation of foreclosed assets, are recorded in noni nterest expense. As of June 30, 2022, Mid Penn had no residential real estate held in other real estate owned and $752,000 loans for which formal foreclosure proceedings were in process. As of December 31, 2021, Mid Penn had no residential real estate held in other real estate owned and no loans for which formal foreclosure proceedings were in process. |
Leases | Leases Mid Penn leases certain premises and equipment and adopted Accounting Standards Update 2016-02, Leases Operating lease expense, recognized as a component of occupancy expense on the consolidated statements of income, consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. Operating lease expense also includes variable lease payments not included in the lease liability, and any impairment of the right-of-use asset. Finance lease expense consists of the amortization of the right-of-use asset, recognized as a component of occupancy expense on the consolidated statements of income, and interest expense on the lease liability, which is recorded as a component of other interest expense on the consolidated statements of income. In assessing whether a contract contains a lease, Mid Penn reviews third-party agreements to determine if the contract conveys the right to control the use of identified property, plant, or equipment (defined as an identified asset by Topic 842) for a period of time in exchange for consideration, and grants Mid Penn the right to both (i) obtain substantially all of the economic benefits from the identified asset’s use, and (ii) direct the use of the identified asset throughout the term of the agreement. Upon identification that a lease agreement exists, Mid Penn performs an assessment of the consideration to be paid related to the identified asset and quantifies both the (i) lease components, consisting of consideration paid to transfer a good or service to Mid Penn, and (ii) non-lease components, consisting of consideration paid for distinct elements of the contract that are not related to securing the use of the leased asset, such as property taxes, common area maintenance, utilities, and insurance. Many of Mid Penn’s lease agreements include options to extend or renew contracts subsequent to the expiration of the initial lease term. These renewal and extension options were not included in the calculation of the right-of-use assets and lease liabilities as Mid Penn is not reasonably certain that these renewals and extensions will be utilized. Additionally, for leases that contain escalation clauses related to consumer or other price indices, Mid Penn includes the known lease payment amount as of the commencement date in the calculation of right-of-use assets and related lease liabilities. Subsequent increases in rental payments over the known amount at the commencement date due to increase in the indices will be expensed as incurred. None of Mid Penn’s lease agreements include residual value guarantees or material variable lease payments. Mid Penn does not have material restrictions or covenants imposed by leases that would impact Mid Penn’s ability to pay dividends or cause Mid Penn to incur additional financial obligations. |
Investments In Limited Partnerships | Investments in Limited Partnerships Mid Penn is a limited partner in a partnership that provides low-income housing in Enola, Pennsylvania. The carrying value of Mid Penn’s investment in the limited partnership was $80,000 at June 30, 2022, and $102,000 at December 31, 2021, net of amortization, using the straight-line method. The investment in this limited partnership is reported in other assets on the consolidated balance sheets, and Mid Penn’s maximum exposure to loss is limited to the carrying value of the investment. Mid Penn owns a limited partnership interest in a low-income housing project with thirty-seven apartments and common amenities in Dauphin County, Pennsylvania. The total investment in this limited partnership, net of amortization to date, was $5,585,000 and $5,962,000 on June 30, 2022 and December 31, 2021, respectively, and was included in the reported balance of other assets on the consolidated balance sheet. All of the units qualified for Federal Low-Income Housing Tax Credits (“LIHTCs”) as provided for in Section 42 of the Internal Revenue Code of 1986, as amended. Mid Penn’s limited partner capital contribution totaled $7,506,000 and the investment was fully funded within a three-year ten-year ten-year |
Core Deposit Intangible | Core Deposit Intangible Core deposit intangible is a measure of the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. The carrying amount of core deposit intangible was $5,780,000 and $7,282,000 at June 30, 2022 and December 31, 2021, respectively. The core deposit intangible is being amortized over a ten-year |
Goodwill | Goodwill Goodwill is the excess of the purchase price over the fair value of assets acquired in connection with past business acquisitions. The goodwill balance was $113,835,000 at both June 30, 2022 and December 31, 2021 and was comprised of (i) $50,995,000 related to the November 30, 2021 Riverview acquisition, (ii) $39,744,000 related to the July 31, 2018 First Priority acquisition, (iii) $19,178,000 related to the January 8, 2018 Scottdale acquisition, and (iv) $3,918,000 recorded as a result of the Phoenix acquisition in 2015. Goodwill is evaluated annually for impairment; however, if certain events occur which indicate goodwill might be impaired between annual tests, goodwill would be tested for impairment when such events occur. In making a potential impairment assessment of goodwill, Mid Penn considers a number of factors including operating results, business plans, economic projections, anticipated future cash flows, current market data, stock price, etc. There are inherent uncertainties related to these factors and Mid Penn’s judgment in applying them to the analysis of goodwill impairment. Mid Penn did not identify any impairment on its outstanding goodwill from its most recent comprehensive impairment evaluation, which was performed as of October 31, 2021 and has been evaluated regularly for impairment given the ongoing pandemic. |
Rabbi Trust | Rabbi Trust As a result of the November 30, 2021 acquisition of Riverview, Mid Penn assumed certain benefit plan liabilities related to compensation arrangements totaling $6,680,000 and $7,708,000 as of June 30, 2022 and December 31, 2021, respectively, within other liabilities on the consolidated balance sheets, including certain executive non-qualified retirement benefits, deferred compensation plans, and executive employment and separation agreements associated with Riverview. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Mid Penn recognizes revenues when earned based upon (i) contractual terms as transactions occur, or (ii) as related services are provided and collectability is reasonably assured. The largest source of revenue for Mid Penn is interest income, which is primarily recognized on an accrual basis according to a written contract, such as loan and lease agreements or investment securities contracts. Mid Penn earns noninterest income through a variety of financial and transactional services such as trust and wealth management services, deposit account transaction fees, ATM debit card fees, and mortgage banking fees. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses. Mid Penn adopted FASB Topic 606, Revenue from Contracts with Customers Mid Penn’s non-interest income revenue streams of income from fiduciary activities, service charges on deposits, ATM debit card interchange income, merchant service fees and certain components of other income are within the scope of Topic 606 and are discussed in greater detail below. Income from Fiduciary and Wealth Management Activities Income from fiduciary and wealth management activities consist of trust, wealth management, and investment management fee income, brokerage transaction fee income, and estate fee income. Trust, wealth management, and investment management fee income consists of advisory fees that are typically based on market values of clients’ managed portfolios and transaction fees for fiduciary services performed, both of which are recognized as earned. Brokerage transaction fee income includes advisory fees, which are recognized as earned on a monthly basis and transaction fees that are recognized when transactions occur. Payment is typically received in the following month. Estate fee income is recognized as services are performed over the service period, generally eighteen months. Service Charges on Deposits Service charges on deposits consist of cash management, overdraft, non-sufficient fund fees and other service charges on deposit accounts. Revenue is primarily transactional and recognized when earned, which is at the time the respective initiating transaction occurs and the related service charge is subsequently processed. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to the customers’ accounts. ATM Debit Card Interchange Income ATM debit card interchange income consists of interchange fees earned when Mid Penn’s debit cards are processed through card payments networks. The interchange fee is calculated as a percentage of the total electronic funds transfer (EFT) transaction plus a per-transaction fee, which varies based on the type of card used, the method used to process the EFT transaction, and the type of business at which the transaction was processed. Revenue is recognized daily as transactions occur and interchange fees are subsequently processed. Payment for most interchange activity is received daily, while some fees are aggregated, and payment is received in the following month. Merchant Services Income Merchant services income is processed through third party providers with whom Mid Penn has partnered to provide merchant services to its business customers. Fees are charged to merchants to process their debit card transactions, cash advance services, and other related products. Mid Penn receives a percentage of the revenue generated from each joint customer relationship after the respective third-party provider has collected the fee income from the merchant. Payment is primarily received in the following month. Other Income Certain aspects of other income, such as credit card royalties, check orders, and letter of credit fees, are within the scope of Topic 606. These fees are primarily transactional, and revenue is recognized when transactions occur, and the related services are subsequently processed. Payment is primarily received immediately or in the following month. Mid Penn does not exercise significant judgements in the recognition of income, as typically income is not recognized until the performance obligation has been satisfied. Mid Penn has not recognized any assets from the costs to obtain or fulfill a contract with customers for revenue streams that fall within the guidance of Topic 606. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes changes in unrealized gains and losses on securities available for sale arising during the period and reclassification adjustments for realized gains and losses on securities available for sale included in net income. Mid Penn also recognizes other comprehensive income (loss) from an unfunded noncontributory defined benefit plan for directors and other postretirement benefit plans covering full-time employees. These plans utilize assumptions and methods to calculate the fair value of plan assets and Mid Penn recognizes the overfunded and underfunded status of the plans on its consolidated balance sheet. Gains and losses, prior service costs and credits are recognized in other comprehensive income (loss), net of tax, until they are amortized, or immediately upon curtailment. The components of accumulated other comprehensive (loss) income, net of taxes, are as follows: (Dollars in thousands) Unrealized Loss on Securities Defined Benefit Plans Accumulated Other Comprehensive (Loss) Income Balance - June 30, 2022 $ (10,297 ) $ 538 $ (9,759 ) Balance - December 31, 2021 $ (255 ) $ 413 $ 158 |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each of the periods presented. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding plus common shares that would have been outstanding if dilutive potential common shares, consisting of unvested restricted stock, had been issued . The effect of dilutive unvested restricted stock was not material and did not result in a difference, when rounded to the whole cent, between the basic earnings per share compared to the diluted earnings per share for any of the periods presented. As previously announced on a Form 8-K on May 4, 2021, Mid Penn completed an underwritten public offering of 2,990,000 shares of common stock at a price of $25.00 per share, with the aggregate gross proceeds of the offering totaling $74,750,000 before underwriting discounts and offering expenses. The net proceeds of the offering after deducting the underwriting discount and other offering expenses were $70,238,000. Additionally, as previously announced on a Form 8-K on December 1, 2021, Mid Penn issued 4,519,776 shares of common stock as a result of the merger with Riverview on November 30, 2021. The additional shares issued on May 4, 2021 and November 30, 2021 significantly impacted the weighted average number of shares outstanding used for the three and six months ended June 30, 2022 earnings per share calculations compared to the three and six months ended June 30, 2021. The following data shows the amounts used in computing basic and diluted earnings per common share. (Dollars in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income $ 12,252 $ 9,613 $ 23,606 $ 18,925 Weighted average common shares outstanding (basic) 15,935,003 10,321,838 15,946,459 9,373,978 Effect of dilutive unvested restricted stock grants 36,415 15,942 17,286 6,479 Weighted average common shares outstanding (diluted) 15,971,418 10,337,780 15,963,745 9,380,457 Basic earnings per common share $ 0.77 $ 0.93 $ 1.48 $ 2.02 Diluted earnings per common share $ 0.77 $ 0.93 $ 1.48 $ 2.02 There were no antidilutive instruments at June 30, 2022 and 2021. |
Accounting Standards Pending Adoption | Accounting Standards Pending Adoption ASU 2016-13 : The FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as further amended . The ASU requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“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 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. Subsequently, the FASB issued ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, and ASU 2020-02 to clarify, improve, or defer the adoption of ASU 2016-13. In October 2019, the FASB issued ASU 2019-10 which deferred the implementation date of ASU 2016-13 for smaller reporting companies (SRCs) until January 1, 2023. Mid Penn qualified as an SRC as of the most recent measurement date of September 30, 2019; therefore, Mid Penn has chosen to delay the adoption of ASU 2016-13 until January 1, 2023. Mid Penn intends to adopt this ASU effective January 1, 2023. Mid Penn expects that it is probable that total credit loss reserves will increase at the adoption date and that the magnitude of the increase will depend on the composition, characteristics and quality of its loan and lease portfolio and the allowance for debt securities, as well as economic conditions and forecasts at the time of adoption. Mid Penn is in the early stages of conducting parallel runs of its new processes and controls and is beginning its model validation process. Mid Penn will continue to make refinements to its credit loss model in advance of the January 1, 2023 adoption date. ASU No. 2022-02: The FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the TDR recognition and measurement guidance and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. In addition, this ASU enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, this ASU requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. For entities that have adopted the amendments in update 2016-13, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted the amendments in update 2016-13, the effective dates for the amendments in this update are the same as the effective dates in Update 2016-13. The Corporation has not yet adopted this accounting standard as ASU 2016-13 has not been adopted. Management continues to evaluate the impact of its future adoption of this guidance on the Company’s financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes | The components of accumulated other comprehensive (loss) income, net of taxes, are as follows: (Dollars in thousands) Unrealized Loss on Securities Defined Benefit Plans Accumulated Other Comprehensive (Loss) Income Balance - June 30, 2022 $ (10,297 ) $ 538 $ (9,759 ) Balance - December 31, 2021 $ (255 ) $ 413 $ 158 |
Basic and Diluted Earnings Per Common Share | The following data shows the amounts used in computing basic and diluted earnings per common share. (Dollars in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income $ 12,252 $ 9,613 $ 23,606 $ 18,925 Weighted average common shares outstanding (basic) 15,935,003 10,321,838 15,946,459 9,373,978 Effect of dilutive unvested restricted stock grants 36,415 15,942 17,286 6,479 Weighted average common shares outstanding (diluted) 15,971,418 10,337,780 15,963,745 9,380,457 Basic earnings per common share $ 0.77 $ 0.93 $ 1.48 $ 2.02 Diluted earnings per common share $ 0.77 $ 0.93 $ 1.48 $ 2.02 |
Acquisition of Riverview Fina_2
Acquisition of Riverview Financial Corporation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Allocation of the Purchase Price | The allocation of the purchase price is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 316,079 Investment securities 226 Restricted stock 2,209 Loans 837,505 Goodwill 50,995 Core deposit intangible 4,096 Customer list intangible 2,160 Bank owned life insurance 32,120 Premises and equipment 11,819 Deferred income taxes 7,110 Accrued interest receivable 1,919 Other assets 6,683 Total assets acquired 1,272,921 Liabilities assumed: Deposits: Noninterest-bearing demand 182,291 Interest-bearing demand 371,283 Money Market 152,365 Savings 176,294 Time 199,414 Long-term debt 6,500 Subordinated debt and trust preferred securities 36,308 Accrued interest payable 439 Other liabilities 5,043 Total liabilities assumed 1,129,937 Consideration paid $ 142,984 Cash paid $ 792 Fair value of common stock issued 142,192 |
Summary of the Final Estimated Fair Value of the Assets Acquired and Liabilities and Equity Assumed | Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, allows for adjustments to goodwill up to one year after the merger date for information that becomes available during this post-merger period that reflects circumstances at the date of merger. The following table summarizes the estimated fair value of the assets acquired and liabilities and equity assumed in the Riverview transaction that management believes are final; however, these values could be adjusted under ASC 805 until November 30, 2022. (Dollars in thousands) Total purchase price (consideration paid) $ 142,984 Net assets acquired: Cash and cash equivalents 316,079 Investment securities 226 Restricted stock 2,209 Loans 837,505 Core deposit intangible 4,096 Customer list intangible 2,160 Bank owned life insurance 32,120 Premises and equipment 11,819 Deferred income taxes 7,110 Accrued interest receivable 1,919 Other assets 6,683 Deposits: Noninterest-bearing demand (182,291 ) Interest-bearing demand (371,283 ) Money Market (152,365 ) Savings (176,294 ) Time (199,414 ) Long-term debt (6,500 ) Subordinated debt and trust preferred securities (36,308 ) Accrued interest payable (439 ) Other liabilities (5,043 ) Net assets acquired 91,989 Goodwill $ 50,995 |
Fair Value Adjustments Made to the Amortized Cost Basis, Presented at the Fair Value of Loans Acquired | The table below illustrates the fair value adjustments made to the amortized cost basis in order to present a fair value of the loans acquired. (Dollars in thousands) Gross amortized cost basis at November 30, 2021 $ 850,920 Market rate adjustment 529 Credit fair value adjustment on pools of homogeneous loans (13,117 ) Credit fair value adjustment on impaired loans (827 ) Fair value of purchased loans at November 30, 2021 $ 837,505 |
Fair Value of the Loans Acquired | The information about the acquired Riverview impaired loan portfolio as of November 30, 2021 is as follows: (Dollars in thousands) Contractually required principal and interest at acquisition $ 5,591 Contractual cash flows not expected to be collected (nonaccretable discount) (1,739 ) Expected cash flows at acquisition 3,852 Interest component of expected cash flows (accretable discount) (541 ) Fair value of acquired loans $ 3,311 |
Pro Forma Information | The following table presents pro forma information as if the merger between Mid Penn and Riverview had been completed on January 1, 2021. (Dollars in thousands, except per share data) Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Net interest income after loan loss provision $ 37,478 $ 71,413 Noninterest income 9,347 16,582 Noninterest expense 31,910 60,708 Net income 14,915 27,287 Net income per common share 0.76 1.46 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Securities Financing Transactions Disclosures [Abstract] | |
Unrealized Gain (Loss) on Investments | The amortized cost, fair value, and unrealized gains and losses on investment securities at June 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2022 Available-for-sale debt securities: U.S. Treasury and U.S. government agencies $ 34,475 $ 76 $ 525 $ 34,026 Mortgage-backed U.S. government agencies 166,321 40 10,928 155,433 State and political subdivision obligations 4,366 — 697 3,669 Corporate debt securities 26,570 — 1,000 25,570 Total available-for-sale debt securities 231,732 116 13,150 218,698 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies $ 239,605 $ 28 $ 21,516 $ 218,117 Mortgage-backed U.S. government agencies 55,180 1 4,857 50,324 State and political subdivision obligations 88,250 68 6,673 81,645 Corporate debt securities 15,997 1 796 15,202 Total held-to-maturity debt securities 399,032 98 33,842 365,288 Total $ 630,764 $ 214 $ 46,992 $ 583,986 (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2021 Available-for-sale debt securities: Mortgage-backed U.S. government agencies $ 49,760 $ 3 $ 283 $ 49,480 State and political subdivision obligations 3,899 26 11 3,914 Corporate debt securities 9,525 — 57 9,468 Total available-for-sale debt securities 63,184 29 351 62,862 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies $ 178,136 $ 26 $ 1,165 $ 176,997 Mortgage-backed U.S. government agencies 61,157 440 272 61,325 State and political subdivision obligations 75,958 2,305 27 78,236 Corporate debt securities 14,006 133 71 14,068 Total held-to-maturity debt securities 329,257 2,904 1,535 330,626 Total $ 392,441 $ 2,933 $ 1,886 $ 393,488 |
Schedule of Fair Value and Unrealized Loss on Debt Security Investments in a Continuous Unrealized Loss Position | The following tables present gross unrealized losses and fair value of debt security investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2022 and December 31, 2021. (Dollars in thousands) Less Than 12 Months 12 Months or More Total Number Number Number of Fair Unrealized of Fair Unrealized of Fair Unrealized June 30, 2022 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale debt securities: U.S. Treasury and U.S. government agencies 11 $ 18,476 $ 525 0 $ — $ — 11 $ 18,476 $ 525 Mortgage-backed U.S. government agencies 83 146,413 10,928 0 — — 83 146,413 10,928 State and political subdivision obligations 8 3,669 697 0 — — 8 3,669 697 Corporate debt securities 13 21,319 1,000 0 — — 13 21,319 1,000 Total temporarily impaired available-for-sale debt securities 115 $ 189,877 $ 13,150 0 $ — $ — 115 $ 189,877 $ 13,150 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 134 $ 205,184 $ 20,366 5 $ 7,345 $ 1,150 139 $ 212,529 $ 21,516 Mortgage-backed U.S. government agencies 64 50,323 4,857 0 — — 64 50,323 4,857 State and political subdivision obligations 168 68,551 6,548 4 815 125 172 69,366 6,673 Corporate debt securities 3 4,784 272 4 4,475 524 7 9,259 796 Total temporarily impaired held-to-maturity debt securities 369 328,842 32,043 13 12,635 1,799 382 341,477 33,842 Total 484 $ 518,719 $ 45,193 13 $ 12,635 $ 1,799 497 $ 531,354 $ 46,992 (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, 2021 Securities Value Losses Securities Value Losses Securities Value Losses Available-for-sale securities: U.S. government agencies 24 $ 45,476 $ 283 0 $ — $ — 24 $ 45,476 $ 283 State and political subdivision obligations 2 1,168 11 0 — — 2 1,168 11 Corporate debt securities 4 4,943 57 0 — — 4 4,943 57 Total temporarily impaired available-for-sale securities 30 51,587 351 0 — — 30 51,587 351 Held-to-maturity securities: U.S. Treasury and U.S. government agencies 91 $ 149,425 $ 1,165 0 $ — $ — 91 $ 149,425 $ 1,165 Mortgage-backed U.S. government agencies 24 39,995 272 0 — — 24 39,995 272 State and political subdivision obligations 17 5,302 25 1 255 2 18 5,557 27 Corporate debt securities 6 6,928 71 0 — — 6 6,928 71 Total temporarily impaired held to maturity securities 138 201,650 1,533 1 255 2 139 201,905 1,535 Total 168 $ 253,237 $ 1,884 1 $ 255 $ 2 169 $ 253,492 $ 1,886 |
Investments Classified by Contractual Maturity Date | The table below illustrates the maturity distribution of investment securities at amortized cost and fair value as of June 30, 2022. (Dollars in thousands) Available-for-sale Held-to-maturity Amortized Fair Amortized Fair June 30, 2022 Cost Value Cost Value Due in 1 year or less $ 250 $ 250 $ 450 $ 451 Due after 1 year but within 5 years 32,976 32,649 69,605 67,815 Due after 5 years but within 10 years 28,121 26,955 230,019 209,494 Due after 10 years 4,064 3,411 43,778 37,204 65,411 63,265 343,852 314,964 Mortgage-backed securities 166,321 155,433 55,180 50,324 $ 231,732 $ 218,698 $ 399,032 $ 365,288 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Type of Loan Portfolio Summarized by the Aggregate Risk Rating | As of June 30, 2022 and December 31, 2021, the types of loans in Mid Penn’s portfolio, summarized using Mid Penn’s internal risk rating system between those rated “pass” (net of deferred fees and costs of $3,146,000 as of June 30, 2022 and $6,264,000 as of December 31, 2021), which comprise the vast majority of the portfolio, and those classified as “special mention” and “substandard”, are as follows: (Dollars in thousands) Special June 30, 2022 Pass Mention Substandard Total Commercial and industrial $ 536,391 $ 11,014 $ 2,476 $ 549,881 Commercial real estate 1,781,062 16,849 28,033 1,825,944 Commercial real estate - construction 374,888 — 1,229 376,117 Residential mortgage 296,636 204 3,496 300,336 Home equity 117,106 507 866 118,479 Consumer 9,276 — — 9,276 $ 3,115,359 $ 28,574 $ 36,100 $ 3,180,033 (Dollars in thousands) Special December 31, 2021 Pass Mention Substandard Total Commercial and industrial $ 606,484 $ 10,321 $ 2,757 $ 619,562 Commercial real estate 1,601,196 35,508 31,438 1,668,142 Commercial real estate - construction 371,337 — 1,397 372,734 Residential mortgage 319,862 294 3,067 323,223 Home equity 106,853 534 2,919 110,306 Consumer 10,429 — — 10,429 $ 3,016,161 $ 46,657 $ 41,578 $ 3,104,396 |
Impaired Loans by Loan Portfolio Class | Impaired loans by loan portfolio class as of June 30, 2022 and December 31, 2021 are summarized as follows: June 30, 2022 December 31, 2021 (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 $ — $ — $ — $ — $ 31 $ — Commercial real estate 637 1,038 — 854 1,243 — Commercial real estate - construction — 5 — 22 27 — Residential mortgage 1,314 1,355 — 1,259 1,295 — Home equity 99 99 — 2,377 2,377 — Consumer — — — — — — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ — $ — $ — $ — $ — $ — Commercial real estate 2,109 2,123 — 2,231 2,909 — Commercial real estate - construction 1,221 1,467 — 1,196 1,469 — Residential mortgage 1,285 1,771 — 1,362 1,847 — Home equity 85 105 — 86 111 — Consumer — — — — — — With an allowance recorded: Commercial and industrial $ 507 $ 538 $ 118 $ 308 $ 339 $ 67 Commercial real estate 1,469 688 892 287 359 121 Commercial real estate - construction — — — — — — Residential mortgage — — — — — — Home equity — — — — — — Consumer — — — — — — Total Impaired Loans: Commercial and industrial $ 507 $ 538 $ 118 $ 308 $ 370 $ 67 Commercial real estate 4,215 3,849 892 3,372 4,511 121 Commercial real estate - construction 1,221 1,472 — 1,218 1,496 — Residential mortgage 2,599 3,126 — 2,621 3,142 — Home equity 184 204 — 2,463 2,488 — Consumer — — — — — — |
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 and six months ended June 30, 2022 and 2021 are summarized as follows: Three Months Ended June 30, 2022 June 30, 2021 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ — $ — $ 72 $ — Commercial real estate 604 — 778 1 Commercial real estate - construction 211 — 26 — Residential mortgage 1,392 6 759 6 Home equity 99 100 2,336 — Consumer — — — — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ — $ — $ — $ — Commercial real estate 2,147 — 1,398 — Commercial real estate - construction 1,205 — — — Residential mortgage 1,335 — 300 — Home equity 85 — — — Consumer — — — — With an allowance recorded: Commercial and industrial $ 503 $ — $ 221 $ — Commercial real estate 735 — 1,793 — Commercial real estate - construction — — — — Residential mortgage — — — — Home equity — — — — Consumer — — — — Total Impaired Loans: Commercial and industrial $ 503 $ — $ 293 $ — Commercial real estate 3,486 — 3,969 1 Commercial real estate - construction 1,416 — 26 — Residential mortgage 2,727 6 1,059 6 Home equity 184 100 2,336 — Consumer — — — — Six Months Ended June 30, 2022 June 30, 2021 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ — $ — $ 502 $ — Commercial real estate 719 — 3,257 1 Commercial real estate - construction 148 — 28 — Residential mortgage 1,379 12 778 14 Home equity 858 184 2,346 — Consumer — — — — With no related allowance recorded and acquired with credit deterioration: Commercial and industrial $ — $ — $ — $ — Commercial real estate 1,948 — 1,406 — Commercial real estate - construction 1,214 — — — Residential mortgage 1,294 — 309 — Home equity 84 — — — Consumer — — — — With an allowance recorded: Commercial and industrial $ 513 $ — $ 177 $ — Commercial real estate 596 — 1,491 — Commercial real estate - construction — — — — Residential mortgage — — — — Home equity — — — — Consumer — — — — Total Impaired Loans: Commercial and industrial $ 513 $ — $ 679 $ — Commercial real estate 3,263 — 6,154 1 Commercial real estate - construction 1,362 — 28 — Residential mortgage 2,673 12 1,087 14 Home equity 942 184 2,346 — Consumer — — — — |
Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration | Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of June 30, 2022 and December 31, 2021 are summarized as follows: (Dollars in thousands) June 30, 2022 December 31, 2021 Commercial and industrial $ 1,357 $ 308 Commercial real estate 2,297 3,372 Commercial real estate - construction 1,229 1,218 Residential mortgage 2,164 2,186 Home equity 504 2,463 $ 7,551 $ 9,547 |
Loan Portfolio Summarized by the Past Due Status | The classes of the loan portfolio summarized by the past due status as of June 30, 2022 and December 31, 2021 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 June 30, 2022 Due Due Days Due Current Total Loans Accruing Commercial and industrial $ 3,265 $ 694 $ 507 $ 4,466 $ 545,415 $ 549,881 $ — Commercial real estate 75 — 512 587 1,823,248 1,823,835 — Commercial real estate - construction 226 — — 226 374,670 374,896 — Residential mortgage 484 99 917 1,500 297,551 299,051 — Home equity 76 167 351 594 117,800 118,394 — Consumer 2 — — 2 9,274 9,276 — Loans acquired with credit deterioration: Commercial and industrial — — — — — — — Commercial real estate — 16 851 867 1,242 2,109 — Commercial real estate - construction 1,221 — — 1,221 — 1,221 — Residential mortgage 106 52 327 485 800 1,285 — Home equity — — 57 57 28 85 — Consumer — — — — — — — Total $ 5,455 $ 1,028 $ 3,522 $ 10,005 $ 3,170,028 $ 3,180,033 $ — Loans (Dollars in thousands) 30-59 60-89 Greater Receivable > Days Past Days Past than 90 Total Past 90 Days and December 31, 2021 Due Due Days Due Current Total Loans Accruing Commercial and industrial $ 1,378 $ 62 $ 404 $ 1,844 $ 617,718 $ 619,562 $ 96 Commercial real estate 32 55 769 856 1,665,055 1,665,911 — Commercial real estate - construction — — 205 205 371,333 371,538 205 Residential mortgage 1,246 205 1,002 2,453 319,408 321,861 212 Home equity 403 — 2,377 2,780 107,440 110,220 — Consumer 6 2 2 10 10,419 10,429 2 Loans acquired with credit deterioration: Commercial and industrial — — — — — — — Commercial real estate — 3 1,628 1,631 600 2,231 — Commercial real estate - construction — — — — 1,196 1,196 — Residential mortgage 54 — 818 872 490 1,362 — Home equity — — — — 86 86 — Consumer — — — — — — — Total $ 3,119 $ 327 $ 7,205 $ 10,651 $ 3,093,745 $ 3,104,396 $ 515 |
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 three months ended, June 30, 2022 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, April 1, 2022 $ 3,811 $ 9,991 $ 41 $ 483 $ 562 $ 2 $ 257 $ 15,147 Charge-offs — — — — — (9 ) — (9 ) Recoveries — — — 2 1 10 — 13 Provisions (credits) (140 ) 2,000 5 17 78 (1 ) (234 ) 1,725 Ending balance, June 30, 2022 $ 3,671 $ 11,991 $ 46 $ 502 $ 641 $ 2 $ 23 $ 16,876 (Dollars in thousands) As of, and for the six months ended, June 30, 2022 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, January 1, 2022 $ 3,439 $ 9,415 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,597 Charge-offs — — — — — (66 ) — (66 ) Recoveries 13 65 24 2 2 14 — 120 Provisions 219 2,511 (16 ) 41 79 52 (661 ) 2,225 Ending balance, June 30, 2022 3,671 11,991 46 502 641 2 23 16,876 Individually evaluated for impairment 118 892 — — — — — 1,010 Ending balance: Collectively evaluated for impairment $ 3,553 $ 11,099 $ 46 $ 502 $ 641 $ 2 $ 23 $ 15,866 Loans receivables: Ending balance $ 549,881 $ 1,825,944 $ 376,117 $ 300,336 $ 118,479 $ 9,276 $ — $ 3,180,033 Ending balance: individually evaluated for impairment 507 2,106 — 1,314 99 — — 4,026 Ending balance: acquired with credit deterioration — 2,109 1,221 1,285 85 — — 4,700 Ending balance: collectively evaluated for impairment $ 549,374 $ 1,821,729 $ 374,896 $ 297,737 $ 118,295 $ 9,276 $ — $ 3,171,307 (Dollars in thousands) December 31, 2021 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Ending balance $ 3,439 $ 9,415 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,597 Ending balance: individually evaluated for impairment 67 121 — — — — — 188 Ending balance: collectively evaluated for impairment $ 3,372 $ 9,294 $ 38 $ 459 $ 560 $ 2 $ 684 $ 14,409 Loans receivable: Ending balance $ 619,562 $ 1,668,142 $ 372,734 $ 323,223 $ 110,306 $ 10,429 $ — $ 3,104,396 Ending balance: individually evaluated for impairment 308 1,141 22 1,259 2,377 — — 5,107 Ending balance: acquired with credit deterioration — 2,231 1,196 1,362 86 — — 4,875 Ending balance: collectively evaluated for impairment $ 619,254 $ 1,664,770 $ 371,516 $ 320,602 $ 107,843 $ 10,429 $ — $ 3,094,414 (Dollars in thousands) As of, and for the three months ended, June 30, 2021 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, April 1, 2021 $ 2,988 $ 8,944 $ 122 $ 438 $ 528 $ 1 $ 570 $ 13,591 Charge-offs — — (23 ) (7 ) — (9 ) — (39 ) Recoveries 1 10 — 1 — 2 — 14 Provisions (credits) 176 1,023 31 67 60 8 (215 ) 1,150 Ending balance, June 30, 2021 $ 3,165 $ 9,977 $ 130 $ 499 $ 588 $ 2 $ 355 $ 14,716 (Dollars in thousands) As of, and for the six months ended, June 30, 2021 Commercial and industrial Commercial real estate Commercial real estate - construction Residential mortgage Home equity Consumer Unallocated Total Allowance for loan and lease losses: Beginning balance, January 1, 2021 3,066 8,655 134 429 507 1 590 $ 13,382 Charge-offs (859 ) — (23 ) (11 ) — (12 ) — (905 ) Recoveries 1 66 — 11 — 11 — 89 Provisions (credits) 957 1,256 19 70 81 2 (235 ) 2,150 Ending balance, June 30, 2021 3,165 9,977 130 499 588 2 355 14,716 Individually evaluated for impairment 62 1,332 — — — — — 1,394 Ending balance: collectively evaluated for impairment $ 3,103 $ 8,645 $ 130 $ 499 $ 588 $ 2 $ 355 $ 13,322 Loans receivables: Ending balance $ 783,106 $ 1,147,089 $ 282,776 $ 196,691 $ 77,272 $ 8,258 $ — $ 2,495,192 Ending balance: individually evaluated for impairment 218 3,673 23 759 2,339 — — 7,012 Ending balance: acquired with credit deterioration — 1,381 — 289 — — — 1,670 Ending balance: collectively evaluated for impairment $ 782,888 $ 1,142,035 $ 282,753 $ 195,643 $ 74,933 $ 8,258 $ — $ 2,486,510 |
Troubled Debt Restructurings | The recorded investments in troubled debt restructured loans at June 30, 2022 and December 31, 2021 are as follows: (Dollars in thousands) Pre-Modification Post-Modification June 30, 2022 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial real estate $ 1,213 $ 1,115 $ 292 Residential mortgage 647 645 450 $ 1,860 $ 1,760 $ 742 (Dollars in thousands) Pre-Modification Post-Modification December 31, 2021 Outstanding Recorded Investment Outstanding Recorded Investment Recorded Investment Commercial and industrial $ 8 $ 8 $ 5 Commercial real estate 1,214 1,115 320 Commercial real estate - construction 40 40 22 Residential mortgage 647 645 472 $ 1,909 $ 1,808 $ 819 |
Schedule of Accretion of Purchased Impaired Loan | The following tables provide activity for the accretable yield of acquired impaired loans from the Phoenix (March 2015), Scottdale (January 2018), First Priority (July 2018), and Riverview (November 2021) acquisitions for the three and six months ended June 30, 2022 and 2021. (Dollars in thousands) Three Months Ended June 30, 2022 2021 Accretable yield, beginning of period $ 499 $ 40 Accretable yield amortized to interest income (28 ) — Accretable yield, end of period $ 471 $ 40 (Dollars in thousands) Six Months Ended June 30, 2022 2021 Accretable yield, beginning of period $ 580 $ 40 Accretable yield amortized to interest income (109 ) - Accretable yield, end of period $ 471 $ 40 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amount and Fair Value of Mortgage Banking Derivative Financial Instruments | The notional amount and fair value of Mid Penn’s mortgage banking derivative financial instruments as of June 30, 2022 and December 31, 2021 are presented below. June 30, 2022 December 31, 2021 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Interest Rate Lock Commitments $ 9,742 $ 83 $ 16,107 $ 56 Forward Commitments 16,193 (124 ) 20,521 32 |
Schedule of Mortgage Banking Derivative Financial Instruments Fair Values, and Location in the Consolidated Balance Sheets | The following table presents Mid Penn’s mortgage banking derivative financial instruments, their fair values, and their location in the consolidated balance sheets as of June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 (Dollars in thousands) Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Interest Rate Lock Commitments $ 83 $ — $ 56 $ — Forward Commitments — 124 32 — Total $ 83 $ 124 $ 88 $ — |
Schedule of Mortgage Banking Derivative Financial Instruments Net, Gains or Losses Recognized Within Other Noninterest Income | The following table presents Mid Penn’s mortgage banking derivative financial instruments and the amount of the net gains or losses recognized within other noninterest income on the consolidated statement of income for the three and six months ended June 30, 2022 and 2021. Three months ended Six months ended (Dollars in thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Interest Rate Lock Commitments $ 214 $ — $ 27 $ — Forward Commitments 324 — 1,077 — Total $ 538 $ — $ 1,104 $ — |
Notional Amount, and Collateral Posted Related to Loan-level Interest Rate Swaps | The fair value, notional amount, and collateral posted related to loan-level interest rate swaps are presented below. (Dollars in thousands) June 30, 2022 December 31, 2021 Interest Rate Swap Contracts - Commercial Loans: Fair Value (a) $ 8,487 $ 102 Notional Amount 112,389 109,577 Cash Collateral Posted (b) 1,600 1,600 (a) Represents the total of the equal and offsetting fair value assets and liabilities related to the loan level interest rate swaps (b) Included in cash and due from banks on the consolidated balance sheet |
Schedule of Gross Amounts of Commercial Loan Swap Derivatives, Amounts Offset and Carrying Values | The gross amounts of commercial loan swap derivatives, the amounts offset and the carrying values in the consolidated balance sheets, and the collateral pledged to support such agreements are presented below. (Dollars in thousands) June 30, 2022 December 31, 2021 Interest Rate Swap Contracts - Commercial Loans: Gross amounts recognized $ 8,487 $ 102 Gross amounts offset 8,487 102 Net Amounts Presented in the Consolidated Balance Sheets — — Gross amounts not offset: Financial instruments — — Cash collateral 1,600 1,600 Net Amounts $ 1,600 $ 1,600 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables illustrate the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels. Fair value measurements at June 30, 2022 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: June 30, 2022 (Level 1) (Level 2) (Level 3) Loans held for sale $ 9,574 $ 9,574 $ — Available-for-sale securities: U.S. Treasury and U.S. government agencies 34,026 — 34,026 — Mortgage-backed U.S. government agencies 155,433 — 155,433 — State and political subdivision obligations 3,669 — 3,669 — Corporate debt securities 25,570 — 25,570 — Other assets: Equity securities 454 454 — — Interest rate swap agreements 8,487 — 8,487 Mortgage banking derivative assets 83 — 83 — Total $ 237,296 $ 454 $ 236,842 $ — Fair value measurements at December 31, 2021 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2021 (Level 1) (Level 2) (Level 3) Loans held for sale $ 11,514 $ — $ 11,514 $ — Available-for-sale securities: Mortgage-backed U.S. government agencies 49,480 — 49,480 — State and political subdivision obligations 3,914 — 3,914 — Corporate debt securities 9,468 — 9,468 — Other assets: Equity securities 500 500 — — Interest rate swap agreements 629 — 629 — Mortgage banking derivative assets 88 — 88 — Total $ 75,593 $ 500 $ 75,093 $ — |
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 June 30, 2022 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: June 30, 2022 (Level 1) (Level 2) (Level 3) Impaired Loans $ 1,043 $ — $ — $ 1,043 Fair value measurements at December 31, 2021 using: (Dollars in thousands) Total carrying value at Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Assets: December 31, 2021 (Level 1) (Level 2) (Level 3) Impaired Loans $ 508 $ — $ — $ 508 |
Fair Value Measurement Inputs and Valuation Techniques | 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) June 30, 2022 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 1,043 Appraisal of collateral (a), (b) Appraisal adjustments (b) 22% - 77% 49% (Dollars in thousands) December 31, 2021 Fair Value Estimate Valuation Technique Unobservable Input Range Weighted Average Impaired Loans $ 508 Appraisal of collateral (a), (b) Appraisal adjustments (b) 21% - 69% 30% (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. |
Fair Value, by Balance Sheet Grouping | The following table summarizes the carrying value and fair value of financial instruments at June 30, 2022 and December 31, 2021. (Dollars in thousands) June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Financial assets: Cash and cash equivalents $ 236,786 $ 236,786 $ 913,572 $ 913,572 Available-for-sale investment securities 218,698 218,698 62,862 62,862 Held-to-maturity investment securities 399,032 365,288 329,257 330,626 Equity securities 454 454 500 500 Loans held for sale 9,574 9,574 11,514 11,787 Net loans and leases 3,163,157 3,130,912 3,089,799 3,118,416 Restricted investment in bank stocks 4,234 4,234 9,134 9,134 Accrued interest receivable 12,902 12,902 10,779 10,779 Interest rate swap agreements 8,487 8,487 629 629 Mortgage banking derivative assets 83 83 88 88 Financial liabilities: Deposits $ 3,702,587 $ 3,692,662 $ 4,002,016 $ 4,046,217 Long-term debt (a) 1,256 317 77,890 77,455 Subordinated debt 73,995 70,684 74,274 74,553 Accrued interest payable 1,542 1,542 1,791 1,791 Mortgage banking derivative liabilities 124 124 — — (a) Long-term debt excludes finance lease obligations. |
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 June 30, 2022 and December 31, 2021. Carrying values approximate fair values for cash and cash equivalents, restricted investment in bank stocks, 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 June 30, 2022 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 399,032 $ 365,288 $ — $ 365,288 $ — Net loans and leases 3,163,157 3,130,912 — — 3,130,912 Financial instruments - liabilities Deposits $ 3,702,587 $ 3,692,662 $ — $ 3,692,662 $ — Long-term debt (a) 1,256 317 — 317 — Subordinated debt 73,995 70,684 — 70,684 — 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, 2021 Amount Fair Value (Level 1) (Level 2) (Level 3) Financial instruments - assets Held-to-maturity investment securities $ 329,257 $ 330,626 $ — $ 330,626 $ — Net loans and leases 3,089,799 3,118,416 — — 3,118,416 Financial instruments - liabilities Deposits $ 4,002,016 $ 4,046,217 $ — $ 4,046,217 $ — Long-term debt (a) 77,890 77,455 — 77,455 — Subordinated debt 74,274 74,553 — 74,553 — (a) Long-term debt excludes finance lease obligations. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Maturities Of Long Term Debt [Abstract] | |
Long-term Debt Outstanding by Due Date | The following table presents a summary of long-term debt as of June 30, 2022 and December 31, 2021. (Dollars in thousands) June 30, 2022 December 31, 2021 FHLB fixed rate instruments: Due April 2022, 0.86343% $ — $ 70,000 Due March 2023, 0.7514% — 6,500 Due August 2026, 4.80% 1,222 1,353 Due February 2027, 6.71% 34 37 Total FHLB fixed rate instruments 1,256 77,890 Lease obligations included in long-term debt 3,336 3,380 Total long-term debt $ 4,592 $ 81,270 |
Defined Benefit Plans (Tables)
Defined Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Periodic Benefit Costs | The components of net periodic benefit costs from these defined benefit plans are as follows: Three Months Ended June 30, (Dollars in thousands) Pension Benefits Other Benefits 2022 2021 2022 2021 Service cost $ 30 $ 33 $ 6 $ — Interest cost 41 40 1 2 Expected return on plan assets (59 ) (57 ) — — Accretion of prior service cost — — (5 ) (5 ) Amortization of net (gain) loss (2 ) — 1 4 Net periodic benefit expense $ 10 $ 16 $ 3 $ 1 Six Months Ended June 30, (Dollars in thousands) Pension Benefits Other Benefits 2022 2021 2022 2021 Service cost $ 72 $ 65 $ 10 $ 1 Interest cost 87 80 18 4 Expected return on plan assets (118 ) (113 ) — — Accretion of prior service cost — — (10 ) (10 ) Amortization of net (gain) loss (4 ) — 5 4 Settlement gain — (49 ) — — Net periodic benefit expense (income) $ 37 $ (17 ) $ 23 $ (1 ) |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2022 Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 30 Months Ended | |||||
Nov. 30, 2021 USD ($) shares | May 04, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Apartment shares | Jun. 30, 2021 USD ($) shares | Dec. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2022 USD ($) | |
Loans and leases receivable, net, carrying amount | $ 3,163,157,000 | $ 3,163,157,000 | $ 3,089,799,000 | $ 3,089,799,000 | $ 3,163,157,000 | |||||
Loans and leases, net of unearned interest | 895,855,000 | 895,855,000 | 1,010,039,000 | 1,010,039,000 | 895,855,000 | |||||
Bank premises and equipment held for sale | 2,574,000 | 2,574,000 | 3,907,000 | 3,907,000 | 2,574,000 | |||||
Bank premises and equipment held for sale, write off expense | $ 705,000 | |||||||||
Asset held for sale, description | Bank premises and equipment designated as held for sale are carried at the lower of cost or market value, and at June 30, 2022 and December 31, 2021, totaled $2,574,000 and $3,907,000, respectively. These balances are related to the December 7, 2021 announcement of a Retail Network Optimization Plan under which the Bank announced its intention to close certain retail locations throughout its expanded footprint. The branch closures occurred on March 4, 2022. Adjustments to record these held for sale assets at the lower of cost or fair value related to the held for sale properties were included in post-acquisition restructuring expenses and totaled $874,000 for the year ended December 31, 2021. During the six months ended June 30, 2022, Mid Penn had a write-off expense of obsolete bank premises and equipment held for sale of $705,000, as a result of branch closures during the first quarter of 2022, as previously announced on a Form 8-K dated December 7, 2021. There were no impairment charges recorded during the six months ended June 30, 2022 or 2021. | |||||||||
Residential real estate held in other real estate owned | 0 | $ 0 | 0 | 0 | 0 | |||||
Foreclosure proceedings in process | 752,000 | 752,000 | 0 | 0 | 752,000 | |||||
Carrying value of investment in limited partnership | 80,000 | $ 80,000 | 102,000 | 102,000 | 80,000 | |||||
Number of apartments under the project | Apartment | 37 | |||||||||
Limited partner capital contribution | 7,506,000 | $ 7,506,000 | 7,506,000 | |||||||
Limited partner capital contribution, funded period | 3 years | |||||||||
Project investment amortization period | 10 years | |||||||||
Total LIHTCs amount awarded for the project | 8,530,000 | |||||||||
Annual LIHTCs amount under the housing project | 853,000 | $ 853,000 | ||||||||
Project investment recognition period | 10 years | |||||||||
Amortization expense | 521,000 | $ 276,000 | $ 1,002,000 | $ 557,000 | ||||||
Goodwill | 113,835,000 | $ 113,835,000 | 113,835,000 | $ 113,835,000 | 113,835,000 | |||||
Number of antidilutive shares | shares | 0 | 0 | ||||||||
Follow-on Public Offering [Member] | ||||||||||
Common shares issued through follow-on public offering, shares | shares | 2,990,000 | |||||||||
Common stock, price per share | $ / shares | $ 25 | |||||||||
Net proceeds received after underwriting discount and other estimated offering expenses | $ 70,238,000 | |||||||||
Proceeds from follow-on common stock public offering | $ 74,750,000 | $ 70,238,000 | ||||||||
First Priority Financial Corp. [Member] | ||||||||||
Goodwill acquired | $ 39,744,000 | 39,744,000 | ||||||||
Riverview [Member] | ||||||||||
Goodwill | $ 50,995,000 | |||||||||
Goodwill acquired | 50,995,000 | 50,995,000 | ||||||||
Stock issued during period, shares | shares | 4,519,776 | |||||||||
Riverview [Member] | Follow-on Public Offering [Member] | ||||||||||
Stock issued during period, shares | shares | 4,519,776 | |||||||||
Riverview [Member] | Rabbi Trust | ||||||||||
Benefit plan liabilities related to compensation arrangements | 6,680,000 | 6,680,000 | 7,708,000 | 7,708,000 | 6,680,000 | |||||
Scottdale Bank and Trust Company [Member] | ||||||||||
Goodwill acquired | 19,178,000 | 19,178,000 | ||||||||
Phoenix Bancorp Incorporated [Member] | ||||||||||
Goodwill acquired | 3,918,000 | 3,918,000 | ||||||||
Core Deposit Intangible [Member] | ||||||||||
Intangible assets, net | 5,780,000 | 5,780,000 | 7,282,000 | 7,282,000 | 5,780,000 | |||||
Amortization expense | $ 797,000 | 543,000 | ||||||||
Core Deposit Intangible, Amortization Period | 10 years | |||||||||
Impairment of core deposit intangible | $ 0 | |||||||||
Increase in core deposit | $ 711,680,000 | 711,680,000 | ||||||||
Finite Lived Intangible Assets Growth Percentage | 28% | |||||||||
Other Assets [Member] | ||||||||||
Carrying value of investment in limited partnership | 5,585,000 | $ 5,585,000 | 5,962,000 | 5,962,000 | 5,585,000 | |||||
Other Assets [Member] | Riverview [Member] | Rabbi Trust | ||||||||||
Cash balance | 6,706,000 | 6,706,000 | 7,708,000 | 7,708,000 | 6,706,000 | |||||
Non Interest Expense [Member] | ||||||||||
Asset held for sale, impairment charge | 0 | $ 0 | 874,000 | |||||||
Reserve for Off-balance Sheet Activities [Member] | ||||||||||
Valuation allowances and reserves, balance | $ 74,000 | $ 74,000 | 72,000 | 72,000 | $ 74,000 | |||||
Maximum [Member] | ||||||||||
Non-residential consumer loans charged off on contractual basis in event of bankruptcy, in period | 120 days | 120 days | 120 days | |||||||
Commercial Portfolio [Member] | ||||||||||
Loan terms | 1 year | |||||||||
Loan to value ratio | 80% | 80% | 80% | |||||||
Residential Portfolio [Member] | Maximum [Member] | ||||||||||
Loan terms | 30 years | |||||||||
Loan to value ratio | 100% | 100% | 100% | |||||||
Loan to value ratio, exposure after private mortgage insurance | 85% | |||||||||
Small Business Administration [Member] | PPP Loans [Member] | ||||||||||
Loans and leases receivable, net, carrying amount | $ 4,966,000 | $ 4,966,000 | 111,286,000 | 111,286,000 | $ 4,966,000 | |||||
Loan guarantee description | The PPP loans, which are 100% guaranteed by the SBA, have up to a five-year term to maturity and carry a low interest rate of 1% throughout the loan term. | |||||||||
Nonrefundable loan processing fees received | $ 3,640,000 | 17,997,000 | 17,997,000 | $ 20,883,000 | 42,520,000 | |||||
Deferred loan processing fees | 171,000 | 171,000 | 3,811,000 | 3,811,000 | 171,000 | |||||
Loan processing fees | 3,640,000 | 6,244,000 | ||||||||
Loss reserve | $ 0 | 0 | ||||||||
Small Business Administration [Member] | Maximum [Member] | PPP Loans [Member] | ||||||||||
Processing fee percentage | 5% | |||||||||
Small Business Administration [Member] | Minimum [Member] | PPP Loans [Member] | ||||||||||
Processing fee percentage | 1% | |||||||||
Equity Securities [Member] | ||||||||||
Equity securities, fair value | 454,000 | $ 454,000 | $ 500,000 | $ 500,000 | 454,000 | |||||
Equity Securities [Member] | ASU 2016-01 [Member] | ||||||||||
Equity securities, fair value | 454,000 | $ 454,000 | $ 500,000 | $ 454,000 | ||||||
Equity securities sold | $ 0 | $ 0 | ||||||||
Home equity lines of credit [Member] | Maximum [Member] | ||||||||||
Loan terms | 20 years | |||||||||
Loan to value ratio | 85% | 85% | 85% | |||||||
Home Equity Lines Of Credit [Member] | Maximum [Member] | ||||||||||
Loan terms | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - (Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Unrealized Loss on Securities | $ (10,297) | $ (255) |
Defined Benefit Plans | 538 | 413 |
Accumulated Other Comprehensive (Loss) Income | $ (9,759) | $ 158 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Basic and Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 12,252 | $ 11,354 | $ 9,613 | $ 9,312 | $ 23,606 | $ 18,925 |
Weighted average common shares outstanding (basic) | 15,935,003 | 10,321,838 | 15,946,459 | 9,373,978 | ||
Effect of dilutive unvested restricted stock grants | 36,415 | 15,942 | 17,286 | 6,479 | ||
Weighted average common shares outstanding (diluted) | 15,971,418 | 10,337,780 | 15,963,745 | 9,380,457 | ||
Basic earnings per common share | $ 0.77 | $ 0.93 | $ 1.48 | $ 2.02 | ||
Diluted earnings per common share | $ 0.77 | $ 0.93 | $ 1.48 | $ 2.02 |
Acquisition of Riverview Fina_3
Acquisition of Riverview Financial Corporation (Narrative) (Details) - USD ($) | Nov. 30, 2021 | Nov. 24, 2021 | Jun. 30, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 113,835,000 | $ 113,835,000 | ||
Riverview [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition completion date | Nov. 30, 2021 | |||
Shares of acquirer ratio of common stock | 48.33% | |||
Business combination, consideration transferred, equity interests issued and issuable | $ 142,192,000 | |||
Restricted stock shares paid out in cash | 2,500 | |||
Payments to acquire businesses gross | $ 792,000 | |||
Business combination consideration transferred | 142,984,000 | |||
Goodwill | 50,995,000 | |||
Core deposit intangible | 4,096,000 | |||
Customer list intangible | $ 2,160,000 | |||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | |||
Fair value of purchased loans | $ 837,505,000 | |||
Riverview [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred, equity interests issued and issuable | $ 142,192,000 | |||
Per share price | $ 31.46 | $ 30.76 | ||
Options outstanding to purchase common stock | 172,964 | |||
Riverview [Member] | Stock Awards [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses gross | $ 776,000 | |||
Riverview [Member] | Fractional Shares [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses gross | $ 16,000 |
Acquisition of Riverview Fina_4
Acquisition of Riverview Financial Corporation (Allocation of the Purchase Price) (Details) - USD ($) | Nov. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets acquired: | |||
Goodwill | $ 113,835,000 | $ 113,835,000 | |
Cash surrender value of life insurance | $ 50,169,000 | $ 49,661,000 | |
Riverview [Member] | |||
Assets acquired: | |||
Cash and cash equivalents | $ 316,079,000 | ||
Investment securities | 226,000 | ||
Restricted stock | 2,209,000 | ||
Loans | 837,505,000 | ||
Goodwill | 50,995,000 | ||
Core deposit intangible | 4,096,000 | ||
Customer list intangible | 2,160,000 | ||
Cash surrender value of life insurance | 32,120,000 | ||
Premises and equipment | 11,819,000 | ||
Deferred income taxes | 7,110,000 | ||
Accrued interest receivable | 1,919,000 | ||
Other assets | 6,683,000 | ||
Total assets acquired | 1,272,921,000 | ||
Liabilities assumed: | |||
Noninterest-bearing demand | 182,291,000 | ||
Interest-bearing demand | 371,283,000 | ||
Money Market | 152,365,000 | ||
Savings | 176,294,000 | ||
Time | 199,414,000 | ||
Long-term debt | 6,500,000 | ||
Subordinated debt and trust preferred securities | 36,308,000 | ||
Accrued interest payable | 439,000 | ||
Other liabilities | 5,043,000 | ||
Total liabilities assumed | 1,129,937,000 | ||
Consideration paid | 142,984,000 | ||
Cash paid | 792,000 | ||
Business combination, consideration transferred, equity interests issued and issuable | $ 142,192,000 |
Acquisition of Riverview Fina_5
Acquisition of Riverview Financial Corporation (Estimated Fair Value of Assets Acquired) (Details) - USD ($) | Nov. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 |
Net assets acquired: | |||
Cash surrender value of life insurance | $ 50,169,000 | $ 49,661,000 | |
Goodwill | $ 113,835,000 | $ 113,835,000 | |
Riverview [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase price (consideration paid) | $ 142,984,000 | ||
Net assets acquired: | |||
Cash and cash equivalents | 316,079,000 | ||
Investment securities | 226,000 | ||
Restricted stock | 2,209,000 | ||
Loans | 837,505,000 | ||
Core deposit intangible | 4,096,000 | ||
Customer list intangible | 2,160,000 | ||
Cash surrender value of life insurance | 32,120,000 | ||
Premises and equipment | 11,819,000 | ||
Deferred income taxes | 7,110,000 | ||
Accrued interest receivable | 1,919,000 | ||
Other assets | 6,683,000 | ||
Noninterest-bearing demand | (182,291,000) | ||
Interest-bearing demand | (371,283,000) | ||
Money Market | (152,365,000) | ||
Savings | (176,294,000) | ||
Time | (199,414,000) | ||
Long-term debt | (6,500,000) | ||
Subordinated debt and trust preferred securities | (36,308,000) | ||
Accrued interest payable | (439,000) | ||
Other liabilities | (5,043,000) | ||
Net assets acquired | 91,989,000 | ||
Goodwill | $ 50,995,000 |
Acquisition of Riverview Fina_6
Acquisition of Riverview Financial Corporation (Fair Value Adjustments) (Details) - Riverview [Member] | Nov. 30, 2021 USD ($) |
Business Acquisition [Line Items] | |
Gross amortized cost basis at November 30, 2021 | $ 850,920,000 |
Market rate adjustment | 529,000 |
Credit fair value adjustment on pools of homogeneous loans | (13,117,000) |
Credit fair value adjustment on impaired loans | (827,000) |
Fair value of purchased loans at November 30, 2021 | $ 837,505,000 |
Acquisition of Riverview Fina_7
Acquisition of Riverview Financial Corporation (Fair Value of Loans Acquired) (Details) - Riverview [Member] $ in Thousands | Nov. 30, 2021 USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | $ 5,591 |
Contractual cash flows not expected to be collected (nonaccretable discount) | (1,739) |
Expected cash flows at acquisition | 3,852 |
Interest component of expected cash flows (accretable discount) | (541) |
Fair value of acquired loans | $ 3,311 |
Acquisition of Riverview Fina_8
Acquisition of Riverview Financial Corporation (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Net interest income after loan loss provision | $ 33,708 | $ 25,727 | $ 67,622 | $ 50,052 |
Noninterest income | 5,230 | 5,652 | 10,980 | 10,364 |
Noninterest expense | $ 23,915 | 19,456 | $ 49,660 | 37,014 |
Riverview [Member] | ||||
Business Acquisition [Line Items] | ||||
Net interest income after loan loss provision | 37,478 | 71,413 | ||
Noninterest income | 9,347 | 16,582 | ||
Noninterest expense | 31,910 | 60,708 | ||
Net income | $ 14,915 | $ 27,287 | ||
Net income per common share | $ 760 | $ 1,460 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | $ 231,732 | $ 63,184 |
Available-for-sale debt securities, Unrealized Gains | 116 | 29 |
Available-for-sale debt securities, Unrealized Losses | 13,150 | 351 |
Available-for-sale debt securities, Fair Value | 218,698 | 62,862 |
Held-to-maturity debt securities, Amortized Cost | 399,032 | 329,257 |
Held-to-maturity debt securities, Unrealized Gains | 98 | 2,904 |
Held-to-maturity debt securities, Unrealized Losses | 33,842 | 1,535 |
Held-to-maturity debt securities, Fair Value | 365,288 | 330,626 |
Available-for-sale securities and Held-to-maturity debt securities, Amortized Cost | 630,764 | 392,441 |
Available-for-sale securities and Held-to-maturity debt securities, Unrealized Gains | 214 | 2,933 |
Available-for-sale securities and Held-to-maturity debt securities, Unrealized Losses | 46,992 | 1,886 |
Available-for-sale securities and Held-to-maturity debt securities, Fair Value | 583,986 | 393,488 |
U.S. Treasury and U.S. government agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | 34,475 | |
Available-for-sale debt securities, Unrealized Gains | 76 | |
Available-for-sale debt securities, Unrealized Losses | 525 | |
Available-for-sale debt securities, Fair Value | 34,026 | |
Held-to-maturity debt securities, Amortized Cost | 239,605 | 178,136 |
Held-to-maturity debt securities, Unrealized Gains | 28 | 26 |
Held-to-maturity debt securities, Unrealized Losses | 21,516 | 1,165 |
Held-to-maturity debt securities, Fair Value | 218,117 | 176,997 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | 166,321 | 49,760 |
Available-for-sale debt securities, Unrealized Gains | 40 | 3 |
Available-for-sale debt securities, Unrealized Losses | 10,928 | 283 |
Available-for-sale debt securities, Fair Value | 155,433 | 49,480 |
Held-to-maturity debt securities, Amortized Cost | 55,180 | 61,157 |
Held-to-maturity debt securities, Unrealized Gains | 1 | 440 |
Held-to-maturity debt securities, Unrealized Losses | 4,857 | 272 |
Held-to-maturity debt securities, Fair Value | 50,324 | 61,325 |
State and political subdivision obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | 4,366 | 3,899 |
Available-for-sale debt securities, Unrealized Gains | 26 | |
Available-for-sale debt securities, Unrealized Losses | 697 | 11 |
Available-for-sale debt securities, Fair Value | 3,669 | 3,914 |
Held-to-maturity debt securities, Amortized Cost | 88,250 | 75,958 |
Held-to-maturity debt securities, Unrealized Gains | 68 | 2,305 |
Held-to-maturity debt securities, Unrealized Losses | 6,673 | 27 |
Held-to-maturity debt securities, Fair Value | 81,645 | 78,236 |
Corporate debt securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale debt securities, Amortized Cost | 26,570 | 9,525 |
Available-for-sale debt securities, Unrealized Losses | 1,000 | 57 |
Available-for-sale debt securities, Fair Value | 25,570 | 9,468 |
Held-to-maturity debt securities, Amortized Cost | 15,997 | 14,006 |
Held-to-maturity debt securities, Unrealized Gains | 1 | 133 |
Held-to-maturity debt securities, Unrealized Losses | 796 | 71 |
Held-to-maturity debt securities, Fair Value | $ 15,202 | $ 14,068 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||||
Available-for-sale Securities Pledged as Collateral | $ 380,649,000 | $ 380,649,000 | $ 244,763,000 | ||
Debt Securities, Available-for-sale, Restriction Type [Extensible List] | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember | ||
Gross realized gains and losses on sales of available-for-sale debt securities | $ 0 | $ 0 | $ 0 | $ 0 | |
FHLB [Member] | |||||
Schedule of Investments [Line Items] | |||||
Letter of credit outstanding, amount | $ 205,100,000 | $ 205,100,000 | $ 450,850,000 |
Investment Securities (Schedule
Investment Securities (Schedule of Fair Value and Unrealized Loss on Debt Security Investments in a Continuous Unrealized Loss Position) (Details) $ in Thousands | Jun. 30, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 115 | 30 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 189,877 | $ 51,587 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 13,150 | $ 351 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Available-for-sale securities, Total: Number of Securities | security | 115 | 30 |
Available-for-sale securities, Total: Fair Value | $ 189,877 | $ 51,587 |
Available-for-sale securities, Total: Unrealized Losses | $ 13,150 | $ 351 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 369 | 138 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 328,842 | $ 201,650 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 32,043 | $ 1,533 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 13 | 1 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 12,635 | $ 255 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 1,799 | $ 2 |
Held-to-maturity securities, Total: Number of Securities | security | 382 | 139 |
Held-to-maturity securities, Total: Fair Value | $ 341,477 | $ 201,905 |
Held-to-maturity securities, Total: Unrealized Losses | $ 33,842 | $ 1,535 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 484 | 168 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Fair Value | $ 518,719 | $ 253,237 |
Available-for-sale securities and Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 45,193 | $ 1,884 |
Available-for-sale securities and Held-to-maturity securities,, 12 Months or More: Number of Securities | security | 13 | 1 |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Fair Value | $ 12,635 | $ 255 |
Available-for-sale securities and Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 1,799 | $ 2 |
Available-for-sale securities and Held-to-maturity securities, Total: Number of Securities | security | 497 | 169 |
Available-for-sale securities and Held-to-maturity securities, Total: Fair Value | $ 531,354 | $ 253,492 |
Available-for-sale securities and Held-to-maturity securities, Total: Unrealized Losses | $ 46,992 | $ 1,886 |
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 | 11 | 24 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 18,476 | $ 45,476 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 525 | $ 283 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Available-for-sale securities, Total: Number of Securities | security | 11 | 24 |
Available-for-sale securities, Total: Fair Value | $ 18,476 | $ 45,476 |
Available-for-sale securities, Total: Unrealized Losses | $ 525 | $ 283 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 134 | 91 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 205,184 | $ 149,425 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 20,366 | $ 1,165 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 5 | 0 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 7,345 | |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 1,150 | |
Held-to-maturity securities, Total: Number of Securities | security | 139 | 91 |
Held-to-maturity securities, Total: Fair Value | $ 212,529 | $ 149,425 |
Held-to-maturity securities, Total: Unrealized Losses | $ 21,516 | $ 1,165 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 83 | |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 146,413 | |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 10,928 | |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | |
Available-for-sale securities, Total: Number of Securities | security | 83 | |
Available-for-sale securities, Total: Fair Value | $ 146,413 | |
Available-for-sale securities, Total: Unrealized Losses | $ 10,928 | |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 64 | 24 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 50,323 | $ 39,995 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 4,857 | $ 272 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Held-to-maturity securities, Total: Number of Securities | security | 64 | 24 |
Held-to-maturity securities, Total: Fair Value | $ 50,323 | $ 39,995 |
Held-to-maturity securities, Total: Unrealized Losses | $ 4,857 | $ 272 |
State and political subdivision obligations [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 8 | 2 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 3,669 | $ 1,168 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 697 | $ 11 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Available-for-sale securities, Total: Number of Securities | security | 8 | 2 |
Available-for-sale securities, Total: Fair Value | $ 3,669 | $ 1,168 |
Available-for-sale securities, Total: Unrealized Losses | $ 697 | $ 11 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 168 | 17 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 68,551 | $ 5,302 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 6,548 | $ 25 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 4 | 1 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 815 | $ 255 |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 125 | $ 2 |
Held-to-maturity securities, Total: Number of Securities | security | 172 | 18 |
Held-to-maturity securities, Total: Fair Value | $ 69,366 | $ 5,557 |
Held-to-maturity securities, Total: Unrealized Losses | $ 6,673 | $ 27 |
Corporate debt securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale securities, Less than 12 Months: Number of Securities | security | 13 | 4 |
Available-for-sale securities, Less than 12 Months: Fair Value | $ 21,319 | $ 4,943 |
Available-for-sale securities, Less than 12 Months: Unrealized Losses | $ 1,000 | $ 57 |
Available-for-sale securities, 12 Months or More: Number of Securities | security | 0 | 0 |
Available-for-sale securities, Total: Number of Securities | security | 13 | 4 |
Available-for-sale securities, Total: Fair Value | $ 21,319 | $ 4,943 |
Available-for-sale securities, Total: Unrealized Losses | $ 1,000 | $ 57 |
Held-to-maturity securities, Less than 12 Months: Number of Securities | security | 3 | 6 |
Held-to-maturity securities, Less than 12 Months: Fair Value | $ 4,784 | $ 6,928 |
Held-to-maturity securities, Less than 12 Months: Unrealized Losses | $ 272 | $ 71 |
Held-to-maturity securities, 12 Months or More: Number of Securities | security | 4 | 0 |
Held-to-maturity securities, 12 Months or More: Fair Value | $ 4,475 | |
Held-to-maturity securities, 12 Months or More: Unrealized Losses | $ 524 | |
Held-to-maturity securities, Total: Number of Securities | security | 7 | 6 |
Held-to-maturity securities, Total: Fair Value | $ 9,259 | $ 6,928 |
Held-to-maturity securities, Total: Unrealized Losses | $ 796 | $ 71 |
Investment Securities (Investme
Investment Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost, Due in 1 year or less | $ 250 | |
Available-for-sale Securities, Amortized Cost, Due in 1 year or less | 32,976 | |
Available-for-sale Securities, Amortized Cost, Due in 1 year or less | 28,121 | |
Available-for-sale Securities, Amortized Cost, Due after 10 years | 4,064 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Total | 65,411 | |
Available-for-sale debt securities, Amortized Cost | 231,732 | $ 63,184 |
Available-for-sale Securities, Fair Value, Due in 1 year or less | 250 | |
Available-for-sale Securities, Fair Value, Due after 1 year but within 5 years | 32,649 | |
Available-for-sale Securities, Fair Value, Due after 5 years but within 10 years | 26,955 | |
Available-for-sale Securities, Fair Value, Due after 10 years | 3,411 | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Fair Value, Total | 63,265 | |
Available-for-sale debt securities, Fair Value | 218,698 | 62,862 |
Held-to-maturity, Due in 1 year or less, Amortized Cost | 450 | |
Held-to-maturity, Due after 1 year through 5 years, Amortized Cost | 69,605 | |
Held-to-maturity, Due after 5 years through 10 years, Amortized Cost | 230,019 | |
Held-to-maturity, Due after 10 years, Amortized Cost | 43,778 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis | 343,852 | |
Held-to-maturity debt securities, Amortized Cost | 399,032 | 329,257 |
Held-to-maturity, Due in 1 year or less, Fair Value | 451 | |
Held-to-maturity, Due after 1 year through 5, Fair Value | 67,815 | |
Held-to-maturity, Due after 5 years through 10 years, Fair Value | 209,494 | |
Held-to-maturity, Due after 10 years, Fair Value | 37,204 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value | 314,964 | |
Held-to-maturity, Fair Value | 365,288 | $ 330,626 |
Mortgage-backed securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale Securities without a Single Maturity Date, Amortized Cost | 166,321 | |
Available-for-sale securities without a Single Maturity Date, Fair Value | 155,433 | |
Held-to-maturity without Single Maturity Date, Amortized Cost | 55,180 | |
Held-to-maturity without Single Maturity Date, Fair Value | $ 50,324 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan and Lease Losses (Narrative) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable deferred fees and costs | $ 3,146,000 | $ 6,264,000 |
Allowance for loan and lease losses | 16,876,000 | 14,597,000 |
Loans outstanding, net | 3,163,157,000 | 3,089,799,000 |
Financing receivable, modifications, recorded investment | $ 742,000 | $ 819,000 |
Number of troubled debt restructured loans | Loan | 0 | 0 |
Nonaccruing [Member] | Six Loans With Four Relationships [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | $ 320,000 | |
Nonaccruing [Member] | Eight Loans With Six Relationships [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | $ 384,000 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | 450,000 | 472,000 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Accruing | Two Unrelated Borrowers [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | 422,000 | 435,000 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Nonaccruing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | 28,000 | 37,000 |
PPP Loans [Member] | Small Business Administration [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses | 0 | |
Loans outstanding, net | 4,966,000 | 111,286,000 |
Commercial Real Estate [Member] | Residential Portfolio [Member] | Residential Mortgage [Member] | Nonaccruing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | $ 292,000 | |
Commercial Real Estate [Member] | Residential Portfolio [Member] | Residential Mortgage [Member] | Nonaccruing [Member] | Two Borrowers [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | 320,000 | |
Commercial Real Estate - Construction [Member] | Residential Portfolio [Member] | Residential Mortgage [Member] | Nonaccruing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | 22,000 | |
Commercial and Industrial [Member] | Residential Portfolio [Member] | Residential Mortgage [Member] | Nonaccruing [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing receivable, modifications, recorded investment | $ 5,000 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan and Lease Losses (Classes Of The Loan Portfolio Summarized By The Aggregate Risk Rating) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | $ 3,180,033 | $ 3,104,396 | $ 2,495,192 |
Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 118,479 | 110,306 | 77,272 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 3,115,359 | 3,016,161 | |
Pass [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 117,106 | 106,853 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 28,574 | 46,657 | |
Special Mention [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 507 | 534 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 36,100 | 41,578 | |
Substandard [Member] | Home Equity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 866 | 2,919 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 549,881 | 619,562 | 783,106 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 1,825,944 | 1,668,142 | 1,147,089 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 376,117 | 372,734 | 282,776 |
Commercial Portfolio [Member] | Pass [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 536,391 | 606,484 | |
Commercial Portfolio [Member] | Pass [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 1,781,062 | 1,601,196 | |
Commercial Portfolio [Member] | Pass [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 374,888 | 371,337 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 11,014 | 10,321 | |
Commercial Portfolio [Member] | Special Mention [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 16,849 | 35,508 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 2,476 | 2,757 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 28,033 | 31,438 | |
Commercial Portfolio [Member] | Substandard [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 1,229 | 1,397 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 300,336 | 323,223 | 196,691 |
Residential Portfolio [Member] | Pass [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 296,636 | 319,862 | |
Residential Portfolio [Member] | Special Mention [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 204 | 294 | |
Residential Portfolio [Member] | Substandard [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 3,496 | 3,067 | |
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | 9,276 | 10,429 | $ 8,258 |
Consumer Portfolio [Member] | Pass [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans and leases receivable, gross, carrying amount | $ 9,276 | $ 10,429 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan and Lease Losses (Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Home Equity [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | $ 99 | $ 2,377 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 99 | 2,377 |
Impaired Loans: Total Recorded Investment | 184 | 2,463 |
Impaired Loans: Total Unpaid Principal Balance | 204 | 2,488 |
Home Equity [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 85 | 86 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 105 | 111 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Unpaid Principal Balance | 31 | |
Impaired Loans with Allowance: Recorded Investment | 507 | 308 |
Impaired Loans with Allowance: Unpaid Principal Balance | 538 | 339 |
Impaired Loans with Allowance: Related Allowance | 118 | 67 |
Impaired Loans: Total Recorded Investment | 507 | 308 |
Impaired Loans: Total Unpaid Principal Balance | 538 | 370 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 637 | 854 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,038 | 1,243 |
Impaired Loans with Allowance: Recorded Investment | 1,469 | 287 |
Impaired Loans with Allowance: Unpaid Principal Balance | 688 | 359 |
Impaired Loans with Allowance: Related Allowance | 892 | 121 |
Impaired Loans: Total Recorded Investment | 4,215 | 3,372 |
Impaired Loans: Total Unpaid Principal Balance | 3,849 | 4,511 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 2,109 | 2,231 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 2,123 | 2,909 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 22 | |
Impaired Loans with No Allowance: Unpaid Principal Balance | 5 | 27 |
Impaired Loans: Total Recorded Investment | 1,221 | 1,218 |
Impaired Loans: Total Unpaid Principal Balance | 1,472 | 1,496 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1,221 | 1,196 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,467 | 1,469 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1,314 | 1,259 |
Impaired Loans with No Allowance: Unpaid Principal Balance | 1,355 | 1,295 |
Impaired Loans: Total Recorded Investment | 2,599 | 2,621 |
Impaired Loans: Total Unpaid Principal Balance | 3,126 | 3,142 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with No Allowance: Recorded Investment | 1,285 | 1,362 |
Impaired Loans with No Allowance: Unpaid Principal Balance | $ 1,771 | $ 1,847 |
Loans and Allowance for Loan _6
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Home Equity [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | $ 99 | $ 2,336 | $ 858 | $ 2,346 |
Impaired Loans with No Allowance: Interest Income Recognized | 100 | 184 | ||
Impaired Financing Receivable, Average Recorded Investment, Total | 184 | 2,336 | 942 | 2,346 |
Impaired Financing Receivable, Interest Income Recognized, Total | 100 | 184 | ||
Home Equity [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | 85 | 84 | ||
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | 72 | 502 | ||
Impaired Loans with Allowance: Average Recorded Investment | 503 | 221 | 513 | 177 |
Impaired Financing Receivable, Average Recorded Investment, Total | 503 | 293 | 513 | 679 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | 211 | 26 | 148 | 28 |
Impaired Financing Receivable, Average Recorded Investment, Total | 1,416 | 26 | 1,362 | 28 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | 1,205 | 1,214 | ||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | 604 | 778 | 719 | 3,257 |
Impaired Loans with No Allowance: Interest Income Recognized | 1 | 1 | ||
Impaired Loans with Allowance: Average Recorded Investment | 735 | 1,793 | 596 | 1,491 |
Impaired Financing Receivable, Average Recorded Investment, Total | 3,486 | 3,969 | 3,263 | 6,154 |
Impaired Financing Receivable, Interest Income Recognized, Total | 1 | 1 | ||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | 2,147 | 1,398 | 1,948 | 1,406 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | 1,392 | 759 | 1,379 | 778 |
Impaired Loans with No Allowance: Interest Income Recognized | 6 | 6 | 12 | 14 |
Impaired Financing Receivable, Average Recorded Investment, Total | 2,727 | 1,059 | 2,673 | 1,087 |
Impaired Financing Receivable, Interest Income Recognized, Total | 6 | 6 | 12 | 14 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financial Asset Acquired with Credit Deterioration [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Impaired Loans with No Allowance: Average Recorded Investment | $ 1,335 | $ 300 | $ 1,294 | $ 309 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan and Lease Losses (Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | $ 7,551 | $ 9,547 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | 504 | 2,463 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | 1,357 | 308 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | 2,297 | 3,372 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | 1,229 | 1,218 |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, nonaccrual status | $ 2,164 | $ 2,186 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan and Lease Losses (Loan Portfolio Summarized By The Past Due Status) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | $ 3,180,033 | $ 3,104,396 | $ 2,495,192 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 515 | ||
Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 4,700 | 4,875 | 1,670 |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 5,455 | 3,119 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 1,028 | 327 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 3,522 | 7,205 | |
Financing Receivables Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 10,005 | 10,651 | |
Financing Receivables Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 3,170,028 | 3,093,745 | |
Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 118,479 | 110,306 | 77,272 |
Home Equity [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 118,394 | 110,220 | |
Home Equity [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 85 | 86 | |
Home Equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 76 | 403 | |
Home Equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 167 | ||
Home Equity [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] | |||
Financing Receivable, Recorded Investment | 351 | 2,377 | |
Home Equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 57 | ||
Home Equity [Member] | Financing Receivables Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 594 | 2,780 | |
Home Equity [Member] | Financing Receivables Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 57 | ||
Home Equity [Member] | Financing Receivables Current [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 117,800 | 107,440 | |
Home Equity [Member] | Financing Receivables Current [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 28 | 86 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 549,881 | 619,562 | 783,106 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 549,881 | 619,562 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 96 | ||
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 3,265 | 1,378 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 694 | 62 | |
Commercial Portfolio [Member] | Commercial and Industrial [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] | |||
Financing Receivable, Recorded Investment | 507 | 404 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 4,466 | 1,844 | |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | Financing Receivables Current [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 545,415 | 617,718 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,825,944 | 1,668,142 | 1,147,089 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,823,835 | 1,665,911 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 2,109 | 2,231 | 1,381 |
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] | |||
Financing Receivable, Recorded Investment | 75 | 32 | |
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] | |||
Financing Receivable, Recorded Investment | 55 | ||
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 16 | 3 | |
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] | |||
Financing Receivable, Recorded Investment | 512 | 769 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 851 | 1,628 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 587 | 856 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 867 | 1,631 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables Current [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 1,823,248 | 1,665,055 | |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financing Receivables Current [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 1,242 | 600 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 376,117 | 372,734 | 282,776 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 374,896 | 371,538 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 205 | ||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,221 | 1,196 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 226 | ||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 1,221 | ||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [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] | |||
Financing Receivable, Recorded Investment | 205 | ||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 226 | 205 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 1,221 | ||
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables Current [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 374,670 | 371,333 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financing Receivables Current [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 1,196 | ||
Consumer Portfolio [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 9,276 | 10,429 | 8,258 |
Consumer Portfolio [Member] | Consumer [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 9,276 | 10,429 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 2 | ||
Consumer Portfolio [Member] | Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 2 | 6 | |
Consumer Portfolio [Member] | Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 2 | ||
Consumer Portfolio [Member] | Consumer [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] | |||
Financing Receivable, Recorded Investment | 2 | ||
Consumer Portfolio [Member] | Consumer [Member] | Financing Receivables Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 2 | 10 | |
Consumer Portfolio [Member] | Consumer [Member] | Financing Receivables Current [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 9,274 | 10,419 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 300,336 | 323,223 | 196,691 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 299,051 | 321,861 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 212 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,285 | 1,362 | $ 289 |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 484 | 1,246 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 106 | 54 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 99 | 205 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 52 | ||
Residential Portfolio [Member] | Residential Mortgage [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] | |||
Financing Receivable, Recorded Investment | 917 | 1,002 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 327 | 818 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables Past Due [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 1,500 | 2,453 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables Past Due [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 485 | 872 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables Current [Member] | Excluded Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | 297,551 | 319,408 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | Financing Receivables Current [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Financing Receivable, Recorded Investment | $ 800 | $ 490 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan and Lease Losses (Allowance And Recorded Investment In Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | $ 15,147 | $ 13,591 | $ 14,597 | $ 13,382 | |
Charge-offs | (9) | (39) | (66) | (905) | |
Recoveries | 13 | 14 | 120 | 89 | |
Provisions (credits) | 1,725 | 1,150 | 2,225 | 2,150 | |
Allowance for Loan Losses, Ending balance | 16,876 | 14,716 | 16,876 | 14,716 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 1,010 | 1,394 | 1,010 | 1,394 | $ 188 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 15,866 | 13,322 | 15,866 | 13,322 | 14,409 |
Loans receivables, Ending balance | 3,180,033 | 2,495,192 | 3,180,033 | 2,495,192 | 3,104,396 |
Loans receivables: Ending balance: individually evaluated for impairment | 4,026 | 7,012 | 4,026 | 7,012 | 5,107 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 3,171,307 | 2,486,510 | 3,171,307 | 2,486,510 | 3,094,414 |
Financial Asset Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans receivables, Ending balance | 4,700 | 1,670 | 4,700 | 1,670 | 4,875 |
Home Equity [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 562 | 528 | 560 | 507 | |
Recoveries | 1 | 2 | |||
Provisions (credits) | 78 | 60 | 79 | 81 | |
Allowance for Loan Losses, Ending balance | 641 | 588 | 641 | 588 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 641 | 588 | 641 | 588 | 560 |
Loans receivables, Ending balance | 118,479 | 77,272 | 118,479 | 77,272 | 110,306 |
Loans receivables: Ending balance: individually evaluated for impairment | 99 | 2,339 | 99 | 2,339 | 2,377 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 118,295 | 74,933 | 118,295 | 74,933 | 107,843 |
Home Equity [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans receivables, Ending balance | 85 | 85 | 86 | ||
Commercial Portfolio [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 3,811 | 2,988 | 3,439 | 3,066 | |
Charge-offs | (859) | ||||
Recoveries | 1 | 13 | 1 | ||
Provisions (credits) | (140) | 176 | 219 | 957 | |
Allowance for Loan Losses, Ending balance | 3,671 | 3,165 | 3,671 | 3,165 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 118 | 62 | 118 | 62 | 67 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 3,553 | 3,103 | 3,553 | 3,103 | 3,372 |
Loans receivables, Ending balance | 549,881 | 783,106 | 549,881 | 783,106 | 619,562 |
Loans receivables: Ending balance: individually evaluated for impairment | 507 | 218 | 507 | 218 | 308 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 549,374 | 782,888 | 549,374 | 782,888 | 619,254 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 9,991 | 8,944 | 9,415 | 8,655 | |
Recoveries | 10 | 65 | 66 | ||
Provisions (credits) | 2,000 | 1,023 | 2,511 | 1,256 | |
Allowance for Loan Losses, Ending balance | 11,991 | 9,977 | 11,991 | 9,977 | |
Allowance for loan losses: Ending balance: individually evaluated for impairment | 892 | 1,332 | 892 | 1,332 | 121 |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 11,099 | 8,645 | 11,099 | 8,645 | 9,294 |
Loans receivables, Ending balance | 1,825,944 | 1,147,089 | 1,825,944 | 1,147,089 | 1,668,142 |
Loans receivables: Ending balance: individually evaluated for impairment | 2,106 | 3,673 | 2,106 | 3,673 | 1,141 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 1,821,729 | 1,142,035 | 1,821,729 | 1,142,035 | 1,664,770 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans receivables, Ending balance | 2,109 | 1,381 | 2,109 | 1,381 | 2,231 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 41 | 122 | 38 | 134 | |
Charge-offs | (23) | (23) | |||
Recoveries | 24 | ||||
Provisions (credits) | 5 | 31 | (16) | 19 | |
Allowance for Loan Losses, Ending balance | 46 | 130 | 46 | 130 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 46 | 130 | 46 | 130 | 38 |
Loans receivables, Ending balance | 376,117 | 282,776 | 376,117 | 282,776 | 372,734 |
Loans receivables: Ending balance: individually evaluated for impairment | 23 | 23 | 22 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 374,896 | 282,753 | 374,896 | 282,753 | 371,516 |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans receivables, Ending balance | 1,221 | 1,221 | 1,196 | ||
Residential Portfolio [Member] | Residential Mortgage [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 483 | 438 | 459 | 429 | |
Charge-offs | (7) | (11) | |||
Recoveries | 2 | 1 | 2 | 11 | |
Provisions (credits) | 17 | 67 | 41 | 70 | |
Allowance for Loan Losses, Ending balance | 502 | 499 | 502 | 499 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 502 | 499 | 502 | 499 | 459 |
Loans receivables, Ending balance | 300,336 | 196,691 | 300,336 | 196,691 | 323,223 |
Loans receivables: Ending balance: individually evaluated for impairment | 1,314 | 759 | 1,314 | 759 | 1,259 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 297,737 | 195,643 | 297,737 | 195,643 | 320,602 |
Residential Portfolio [Member] | Financial Asset Acquired with Credit Deterioration [Member] | Residential Mortgage [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Loans receivables, Ending balance | 1,285 | 289 | 1,285 | 289 | 1,362 |
Consumer Portfolio [Member] | Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 2 | 1 | 2 | 1 | |
Charge-offs | (9) | (9) | (66) | (12) | |
Recoveries | 10 | 2 | 14 | 11 | |
Provisions (credits) | (1) | 8 | 52 | 2 | |
Allowance for Loan Losses, Ending balance | 2 | 2 | 2 | 2 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | 2 | 2 | 2 | 2 | 2 |
Loans receivables, Ending balance | 9,276 | 8,258 | 9,276 | 8,258 | 10,429 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 9,276 | 8,258 | 9,276 | 8,258 | 10,429 |
Unallocated [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan and lease losses, Beginning balance | 257 | 570 | 684 | 590 | |
Provisions (credits) | (234) | (215) | (661) | (235) | |
Allowance for Loan Losses, Ending balance | 23 | 355 | 23 | 355 | |
Allowance for loan losses: Ending balance: collectively evaluated for impairment | $ 23 | $ 355 | $ 23 | $ 355 | $ 684 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan and Lease Losses (Troubled Debt Restructurings) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,860,000 | $ 1,909,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,760,000 | 1,808,000 |
Financing Receivable, Modifications, Recorded Investment | 742,000 | 819,000 |
Commercial Portfolio [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 1,213,000 | 1,214,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,115,000 | 1,115,000 |
Financing Receivable, Modifications, Recorded Investment | 292,000 | 320,000 |
Commercial Portfolio [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 8,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 8,000 | |
Financing Receivable, Modifications, Recorded Investment | 5,000 | |
Commercial Portfolio [Member] | Commercial Real Estate - Construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 40,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 40,000 | |
Financing Receivable, Modifications, Recorded Investment | 22,000 | |
Residential Portfolio [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 647,000 | 647,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 645,000 | 645,000 |
Financing Receivable, Modifications, Recorded Investment | $ 450,000 | $ 472,000 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan and Lease Losses (Schedule of Accretion of Purchased Impaired Loan) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | ||||
Accretable yield, beginning balance | $ 499 | $ 40 | $ 580 | $ 40 |
Accretable yield amortized to interest income | (28) | 0 | (109) | 0 |
Accretable yield, ending balance | $ 471 | $ 40 | $ 471 | $ 40 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Notional Amount and Fair Value of Mortgage Banking Derivative Financial Instruments) (Details) - Mortgage Banking Derivative Financial Instruments [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Notional amount of mortgage banking derivative financial instruments | $ 9,742 | $ 16,107 |
Fair Value of mortgage banking derivative financial instruments | 83 | 56 |
Forward Commitments [Member] | ||
Derivative [Line Items] | ||
Notional amount of mortgage banking derivative financial instruments | 16,193 | 20,521 |
Fair Value of mortgage banking derivative financial instruments | $ 32 | |
Fair Value of mortgage banking derivative financial instruments, Liability | $ (124) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Mortgage Banking Derivative Financial Instruments Fair Values, and Location in the Consolidated Balance Sheets) (Details) - Mortgage Banking Derivative Financial Instruments [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Asset Derivatives | $ 83 | $ 88 |
Liability Derivatives | 124 | |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Asset Derivatives | 83 | 56 |
Forward Commitments [Member] | ||
Derivative [Line Items] | ||
Asset Derivatives | $ 32 | |
Liability Derivatives | $ 124 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Mortgage Banking Derivative Financial Instruments Net, Gains or Losses Recognized Within Other Noninterest Income) (Details) - Mortgage Banking Derivative Financial Instruments [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Derivative [Line Items] | ||
Net gains or losses recognized within other noninterest income | $ 538 | $ 1,104 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Net gains or losses recognized within other noninterest income | 214 | 27 |
Forward Commitments [Member] | ||
Derivative [Line Items] | ||
Net gains or losses recognized within other noninterest income | $ 324 | $ 1,077 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Notional Amount, and Collateral Posted Related to Loan-level Interest Rate Swaps) (Details) - Commercial Loan [Member] - Not Designated as Hedging [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Other Assets [Member] | |||
Derivative [Line Items] | |||
Interest Rate Swap Contracts - Commercial Loans, Fair Value (a) | [1] | $ 8,487 | $ 102 |
Interest Rate Swaps {Member] | |||
Derivative [Line Items] | |||
Interest Rate Swap Contracts - Commercial Loans, Notional Amount | 112,389 | 109,577 | |
Interest Rate Swap Contracts - Commercial Loans, Cash Collateral Posted (b) | [2] | $ 1,600 | $ 1,600 |
[1]Represents the total of the equal and offsetting fair value assets and liabilities related to the loan level interest rate swaps[2]Included in cash and due from banks on the consolidated balance sheet |
Derivative Financial Instrume_7
Derivative Financial Instruments (Schedule of Gross Amounts of Commercial Loan Swap Derivatives, Amounts Offset and Carrying Values) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Gross amounts not offset: | ||
Cash collateral | $ 1,600 | $ 1,600 |
Net Amounts | 1,600 | 1,600 |
Interest Rate Swaps {Member] | Commercial Loan [Member] | ||
Derivative [Line Items] | ||
Gross amounts recognized | 8,487 | 102 |
Gross amounts offset | $ 8,487 | $ 102 |
Fair Value Measurement (Assets
Fair Value Measurement (Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 9,574 | $ 11,514 |
Available-for-sale debt securities | 218,698 | 62,862 |
Available-for-sale securities | 237,296 | 75,593 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 454 | 500 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 9,574 | 11,514 |
Available-for-sale securities | 236,842 | 75,093 |
Mortgage-backed U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 155,433 | 49,480 |
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 debt securities | 155,433 | 49,480 |
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 debt securities | 34,026 | |
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 debt securities | 34,026 | |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 25,570 | 9,468 |
Corporate debt securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 25,570 | 9,468 |
State and political subdivision obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 3,669 | 3,914 |
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 debt securities | 3,669 | 3,914 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale equity securities | 454 | 500 |
Equity Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale equity securities | 454 | 500 |
Mortgage Banking Derivative Financial Instruments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale derivative instruments | 83 | 88 |
Mortgage Banking Derivative Financial Instruments [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale derivative instruments | 83 | 88 |
Interest Rate Swap Agreements [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale derivative instruments | 8,487 | 629 |
Interest Rate Swap Agreements [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale derivative instruments | $ 8,487 | $ 629 |
Fair Value Measurement (Fair Va
Fair Value Measurement (Fair Value Measurements, Nonrecurring) (Details) - Nonrecurring [Member] - Impaired Loan [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,043 | $ 508 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,043 | $ 508 |
Fair Value Measurement (Fair _2
Fair Value Measurement (Fair Value Inputs, Assets, Quantitative Information) (Details) - Impaired Loan [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Measurements, Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Fair Value Disclosure, Unobservable Input Range | Appraisal adjustments | Appraisal adjustments |
Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,043 | $ 508 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,043 | $ 508 |
Minimum [Member] | Discount Rate [Member] | Appraisal of Collateral [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 22% | 21% |
Maximum [Member] | Discount Rate [Member] | Appraisal of Collateral [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 77% | 69% |
Weighted Average [Member] | Discount Rate [Member] | Appraisal of Collateral [Member] | Unobservable Input - Appraisal Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Discount Rate | 49% | 30% |
Fair Value Measurement (Fair _3
Fair Value Measurement (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale investment securities | $ 218,698,000 | $ 62,862,000 | |
Held-to-maturity investment securities | 365,288,000 | 330,626,000 | |
Equity securities | 454,000 | 500,000 | |
Loans held for sale | 9,574,000 | 11,514,000 | |
Net loans and leases | 895,855,000 | 1,010,039,000 | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 236,786,000 | 913,572,000 | |
Available-for-sale investment securities | 218,698,000 | 62,862,000 | |
Held-to-maturity investment securities | 399,032,000 | 329,257,000 | |
Equity securities | 454,000 | 500,000 | |
Loans held for sale | 9,574,000 | 11,514,000 | |
Net loans and leases | 3,163,157,000 | 3,089,799,000 | |
Restricted investment in bank stocks | 4,234,000 | 9,134,000 | |
Accrued interest receivable | 12,902,000 | 10,779,000 | |
Net Amounts Presented in the Consolidated Balance Sheets | 8,487,000 | 629,000 | |
Mortgage banking derivative assets | 83,000 | 88,000 | |
Deposits | 3,702,587,000 | 4,002,016,000 | |
Long-term debt | [1] | 1,256,000 | 77,890,000 |
Subordinated debt | 73,995,000 | 74,274,000 | |
Accrued interest payable | 1,542,000 | 1,791,000 | |
Mortgage banking derivative liabilities | 124,000 | ||
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 236,786,000 | 913,572,000 | |
Available-for-sale investment securities | 218,698,000 | 62,862,000 | |
Held-to-maturity investment securities | 365,288,000 | 330,626,000 | |
Equity securities | 454,000 | 500,000 | |
Loans held for sale | 9,574,000 | 11,787,000 | |
Net loans and leases | 3,130,912,000 | 3,118,416,000 | |
Restricted investment in bank stocks | 4,234,000 | 9,134,000 | |
Accrued interest receivable | 12,902,000 | 10,779,000 | |
Net Amounts Presented in the Consolidated Balance Sheets | 8,487,000 | 629,000 | |
Mortgage banking derivative assets | 83,000 | 88,000 | |
Deposits | 3,692,662,000 | 4,046,217,000 | |
Long-term debt | [1] | 317,000 | 77,455,000 |
Subordinated debt | 70,684,000 | 74,553,000 | |
Accrued interest payable | 1,542,000 | $ 1,791,000 | |
Mortgage banking derivative liabilities | $ 124,000 | ||
[1]Long-term debt excludes finance lease obligations. |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity investment securities | $ 365,288,000 | $ 330,626,000 | |
Net loans and leases | 895,855,000 | 1,010,039,000 | |
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity investment securities | 365,288,000 | 330,626,000 | |
Deposits | 3,692,662,000 | 4,046,217,000 | |
Long-term debt | [1] | 317,000 | 77,455,000 |
Subordinated debt | 70,684,000 | 74,553,000 | |
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net loans and leases | 3,130,912,000 | 3,118,416,000 | |
Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity investment securities | 399,032,000 | 329,257,000 | |
Net loans and leases | 3,163,157,000 | 3,089,799,000 | |
Deposits | 3,702,587,000 | 4,002,016,000 | |
Long-term debt | [1] | 1,256,000 | 77,890,000 |
Subordinated debt | 73,995,000 | 74,274,000 | |
Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity investment securities | 365,288,000 | 330,626,000 | |
Net loans and leases | 3,130,912,000 | 3,118,416,000 | |
Deposits | 3,692,662,000 | 4,046,217,000 | |
Long-term debt | [1] | 317,000 | 77,455,000 |
Subordinated debt | $ 70,684,000 | $ 74,553,000 | |
[1]Long-term debt excludes finance lease obligations. |
Guarantees, Commitments, and _2
Guarantees, Commitments, and Contingencies (Narrative) (Details) | 6 Months Ended | 9 Months Ended | 12 Months Ended | 30 Months Ended | |||
Nov. 30, 2021 USD ($) Apartment Building Shop | Jun. 30, 2022 USD ($) Apartment | Jun. 30, 2021 USD ($) Apartment | Dec. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2022 USD ($) | |
Commitments, Contingencies and Guarantees [Line Items] | |||||||
Number of apartments under the project | Apartment | 37 | ||||||
Limited partner capital contribution | $ 7,506,000 | $ 7,506,000 | |||||
Total LIHTCs amount awarded for the project | $ 8,530,000 | ||||||
Project investment amortization period | 10 years | ||||||
Limited partner capital contribution commitment | $ 7,506,000 | 7,506,000 | |||||
Total LIHTCs amount awarded for the project | 8,530,000 | ||||||
PPP Loans [Member] | Small Business Administration [Member] | |||||||
Commitments, Contingencies and Guarantees [Line Items] | |||||||
Nonrefundable loan processing fees received | 3,640,000 | $ 17,997,000 | 17,997,000 | $ 20,883,000 | $ 42,520,000 | ||
Cumberland County, Pennsylvania | |||||||
Commitments, Contingencies and Guarantees [Line Items] | |||||||
Number of apartments under the project | Apartment | 39 | ||||||
Limited partner capital contribution | $ 10,805,000 | ||||||
Total LIHTCs amount awarded for the project | 1,205,000 | ||||||
Total anticipated LIHTCs amount under the housing project | $ 12,046,000 | ||||||
Project investment amortization period | 10 years | ||||||
Limited partner capital contribution commitment | $ 10,805,000 | ||||||
Total LIHTCs amount awarded for the project | $ 1,205,000 | ||||||
Riverview [Member] | |||||||
Commitments, Contingencies and Guarantees [Line Items] | |||||||
Number of apartments under the project | Apartment | 17 | ||||||
Limited partner capital contribution | $ 4,356,000 | ||||||
Total LIHTCs amount awarded for the project | 484,000 | ||||||
Total anticipated LIHTCs amount under the housing project | $ 4,840,000 | ||||||
Project investment amortization period | 10 years | ||||||
Number Of Buildings | Building | 3 | ||||||
Number of shops under the project | Shop | 2 | ||||||
Limited partner capital contribution commitment | $ 4,356,000 | ||||||
Total LIHTCs amount awarded for the project | 484,000 | ||||||
Principal amount of construction loan | $ 3,500,000 | ||||||
Interest percentage | 5.50% | ||||||
Term of construction loan | 24 months | ||||||
Financial Standby Letters of Credit [Member] | |||||||
Commitments, Contingencies and Guarantees [Line Items] | |||||||
Commitments to extend credit | $ 54,179,000 | $ 55,609,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Maturity of federal funds purchased from correspondent banks | one business day | |
Real estate secured loans | $ 2,024,652,000 | |
Current borrowing available | 1,206,604,000 | |
Maximum borrowing capacity | 1,414,751,000 | |
Long-term debt outstanding | 4,592,000 | $ 81,270,000 |
FHLB [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit outstanding, amount | $ 205,100,000 | 450,850,000 |
Paycheck Protection Program Liquidity Facility | ||
Debt Instrument [Line Items] | ||
Short-term borrowings, term | five years | |
Short-term borrowings, interest Rate | 0.35% | |
Other Correspondent Banks [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding drawings | $ 0 | 0 |
Line of credit facility, remaining borrowing capacity | 35,000,000 | |
Short term borrowings | 0 | 0 |
FHLB Short-Term Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding drawings | $ 0 | $ 0 |
Debt (Long-term Debt Outstandin
Debt (Long-term Debt Outstanding by Due Date) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Total FHLB fixed rate instruments | $ 1,256 | $ 77,890 |
Lease obligations included in long-term debt | 3,336 | 3,380 |
Total long-term debt | $ 4,592 | 81,270 |
Due in April 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 70,000 | |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 0.86343% | 0.86343% |
Federal Home Loan Bank, advances, branch of FHLB bank, due date | 2022-04 | 2022-04 |
Due in March 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 6,500 | |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 0.7514% | 0.7514% |
Federal Home Loan Bank, advances, branch of FHLB bank, due date | 2023-03 | 2023-03 |
Due in August 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 1,222 | $ 1,353 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 4.80% | 4.80% |
Federal Home Loan Bank, advances, branch of FHLB bank, due date | 2026-08 | 2026-08 |
Due in February 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt outstanding | $ 34 | $ 37 |
Federal Home Loan Bank, advances, branch of FHLB bank, interest rate | 6.71% | 6.71% |
Federal Home Loan Bank, advances, branch of FHLB bank, due date | 2027-02 | 2027-02 |
Subordinated Debt and Trust P_2
Subordinated Debt and Trust Preferred Securities (Narrative) (Details) - Subordinated Debt [Member] - USD ($) | 6 Months Ended | |||||||
Nov. 30, 2021 | Dec. 22, 2020 | Mar. 20, 2020 | Dec. 19, 2017 | Oct. 01, 2017 | Dec. 09, 2015 | Jun. 30, 2022 | Dec. 31, 2021 | |
Subordinated Notes Due December 2030 [Member] | ||||||||
Debt instrument, maturity date | Dec. 31, 2030 | |||||||
Debt instrument, interest rate, effective percentage | 4.50% | |||||||
Debt instrument, Description of variable rate basis | The December 2020 Notes bear interest at a rate of 4.5% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the December 2020 Notes are floating will at no time be less than 4.5%. | |||||||
Subordinated debt issuance | $ 12,150,000 | |||||||
Debt instrument, payment terms | Interest is payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on March 31, 2021. | |||||||
Debt instrument, redemption, description | The December 2020 Notes bear interest at a rate of 4.5% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the December 2020 Notes are floating will at no time be less than 4.5%. Interest is payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on March 31, 2021. The December 2020 Notes will mature on December 31, 2030 and are redeemable, in whole or in part, without premium or penalty, on any interest payment date on or after December 31, 2025 and prior to December 31, 2030, subject to any required regulatory approvals. Additionally, if (i) all or any portion of the December 2020 Notes cease to be deemed Tier 2 Capital, (ii) interest on the December 2020 Notes fails to be deductible for United States federal income tax purposes, or (iii) Mid Penn will be considered an “investment company,” Mid Penn may redeem the December 2020 Notes, in whole but not in part, by giving 10 days’ notice to the holders of the December 2020 Notes. In the event of a redemption described in the previous sentence, Mid Penn will redeem the December 2020 Notes at 100% of the principal amount of the December 2020 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. | |||||||
Debt instrument, interest rate, effective percentage | 4.50% | |||||||
Notes payable to related parties | $ 750,000 | $ 750,000 | ||||||
Subordinated Notes Due March 2030 [Member] | ||||||||
Debt instrument, maturity date | Mar. 30, 2030 | |||||||
Debt instrument, interest rate, effective percentage | 4% | |||||||
Debt instrument, Description of variable rate basis | The March 2020 Notes bear interest at a rate of 4.0% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the March 2020 Notes are floating will at no time be less than 4.25%. | |||||||
Subordinated debt issuance | $ 6,870,000 | $ 15,000,000 | $ 8,130,000 | |||||
Debt instrument, payment terms | Interest is payable semi-annually in arrears on June 30 and December 30 of each year, beginning on June 30, 2020, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 30, June 30, September 30 and December 30. | |||||||
Debt instrument, redemption, description | The March 2020 Notes bear interest at a rate of 4.0% per year for the first five years and then float at the Wall Street Journal’s Prime Rate, provided that the interest rate applicable to the outstanding principal balance during the period the March 2020 Notes are floating will at no time be less than 4.25%. Interest is payable semi-annually in arrears on June 30 and December 30 of each year, beginning on June 30, 2020, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 30, June 30, September 30 and December 30. The March 2020 Notes will mature on March 30, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after March 30, 2025 and prior to March 30, 2030. Additionally, if all or any portion of the March 2020 Notes cease to be deemed Tier 2 Capital, Mid Penn may redeem, on any interest payment date, all or part of the 2020 Notes. In the event of a redemption described in the previous sentence, Mid Penn will redeem the March 2020 Notes at 100% of the principal amount of the March 2020 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. | |||||||
Debt instrument, interest rate, effective percentage | 4.25% | |||||||
Notes payable to related parties | $ 1,700,000 | 1,700,000 | ||||||
Subordinated Notes Due 2028 [Member] | ||||||||
Debt instrument, maturity date | Jan. 01, 2028 | |||||||
Debt instrument, interest rate, effective percentage | 5.25% | |||||||
Debt instrument, Description of variable rate basis | The 2017 Notes bear interest at a rate of 5.25% per year for the first five years and then float at the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no time be less than 5.0%. | |||||||
Subordinated debt issuance | $ 10,000,000 | |||||||
Debt instrument, payment terms | Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018, for the first five years after issuance and will be payable quarterly in arrears thereafter on January 15, April 15, July 15, and October 15. | |||||||
Debt instrument, redemption, description | The 2017 Notes bear interest at a rate of 5.25% per year for the first five years and then float at the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no time be less than 5.0%. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018, for the first five years after issuance and will be payable quarterly in arrears thereafter on January 15, April 15, July 15, and October 15. The 2017 Notes will mature on January 1, 2028 and are redeemable in whole or in part, without premium or penalty, at any time on or after December 21, 2022, and prior to January 1, 2028. Additionally, Mid Penn may redeem the 2017 Notes in whole at any time, or in part from time to time, upon at least 30 days’ notice if: (i) a change or prospective change in law occurs that could prevent Mid Penn from deducting interest payable on the 2017 Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the 2017 Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) Mid Penn becomes required to register as an investment company under the Investment Company Act of 1940, as amended. In the event of a redemption described in the previous sentence, Mid Penn will redeem the 2017 Notes at 100% of the principal amount of the 2017 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. | |||||||
Notes payable to related parties | $ 1,450,000 | 1,450,000 | ||||||
Unamortized debt issuance cost | $ 31,000 | 44,000 | ||||||
Subordinated Notes Due 2028 [Member] | WSJ Prime Rate [Member] | ||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||
Subordinated Notes Due 2028 [Member] | WSJ Prime Rate [Member] | Maximum [Member] | ||||||||
Debt instrument, interest rate, effective percentage | 5% | |||||||
Subordinated Notes Due 2025 [Member] | ||||||||
Debt instrument, maturity date | Dec. 09, 2025 | |||||||
Debt instrument, interest rate, effective percentage | 5.15% | |||||||
Debt instrument, Description of variable rate basis | The 2015 Notes paid interest at a rate of 5.15% per year for the first five years outstanding, including the three months ended March 31, 2020. Beginning January 1, 2021, the 2015 Notes bear interest at a floating rate based on the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no time be less than 4.0%. | |||||||
Subordinated debt issuance | $ 7,500,000 | |||||||
Debt instrument, payment terms | Interest is payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2016. | |||||||
Debt instrument, redemption, description | The 2015 Notes paid interest at a rate of 5.15% per year for the first five years outstanding, including the three months ended March 31, 2020. Beginning January 1, 2021, the 2015 Notes bear interest at a floating rate based on the Wall Street Journal’s Prime Rate plus 0.50%, provided that the interest rate applicable to the outstanding principal balance will at no time be less than 4.0%. Interest is payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on January 1, 2016. The 2015 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 2015 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 2015 Notes for U.S. federal income tax purposes; (ii) an event occurs that precludes the 2015 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 2015 Notes, plus accrued and unpaid interest thereon to but excluding the date of redemption. | |||||||
Notes payable to related parties | $ 1,930,000 | 1,930,000 | ||||||
Unamortized debt issuance cost | $ 31,000 | $ 44,000 | ||||||
Subordinated Notes Due 2025 [Member] | WSJ Prime Rate [Member] | ||||||||
Debt instrument, basis spread on variable rate | 0.50% | |||||||
Subordinated Notes Due 2025 [Member] | WSJ Prime Rate [Member] | Maximum [Member] | ||||||||
Debt instrument, interest rate, effective percentage | 4% | |||||||
Riverview Acquisition [Member] | ||||||||
Subordinate debt assumed | 25,000,000 | |||||||
Subordinated debt fair value premium | $ 2,302,000 | |||||||
Riverview agreement date | Oct. 06, 2020 | |||||||
Debt instrument, maturity date | Oct. 15, 2030 | |||||||
Debt instrument, interest rate, effective percentage | 5.75% | |||||||
Debt instrument, Description of variable rate basis | quarterly to an interest rate per annum equal to the then current three-month secured overnight financing rate (“SOFR”) plus 563 basis points, payable quarterly until maturity. Mid Penn may redeem the Notes at par, in whole or in part, at its option, anytime beginning on October 15, 2025 | |||||||
CBT 2017 Notes [Member] | ||||||||
Debt instrument acquisition date | Oct. 01, 2017 | |||||||
Subordinated debentures issued | 5,155,000 | |||||||
Debt instrument face value percentage | 100% | |||||||
CBT 2017 Notes [Member] | Three-Month LIBOR Rate Plus 2.95% [Member] | ||||||||
Debt instrument, interest rate, effective percentage | 2.95% | |||||||
CBT 2015 Notes [Member] | ||||||||
Subordinated debentures issued | 4,124,000 | |||||||
Debt instrument face value percentage | 100% | |||||||
CBT 2017 Notes and CBT 2015 Notes [Member] | ||||||||
Debt instrument fair value premium | $ 6,000 |
Defined Benefit Plans (Narrativ
Defined Benefit Plans (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Scenario Forecast [Member] | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Contributions by employer to defined benefit plan | $ 0 |
Defined Benefit Plans (Net Peri
Defined Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 30 | $ 33 | $ 72 | $ 65 |
Interest cost | 41 | 40 | 87 | 80 |
Expected return on plan assets | (59) | (57) | (118) | (113) |
Amortization of net (gain) loss | (2) | (4) | ||
Settlement gain | (49) | |||
Net periodic benefit expense (income) | 10 | 16 | 37 | (17) |
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | 10 | 1 | |
Interest cost | 1 | 2 | 18 | 4 |
Accretion of prior service cost | (5) | (5) | (10) | (10) |
Amortization of net (gain) loss | 1 | 4 | 5 | 4 |
Net periodic benefit expense (income) | $ 3 | $ 1 | $ 23 | $ (1) |
Common Stock (Details)
Common Stock (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Nov. 30, 2021 | May 04, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | |
Employee [Member] | Minimum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted shares, vesting period | 1 year | ||||||
Employee [Member] | Maximum [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted shares, vesting period | 4 years | ||||||
Director [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted shares, vesting period | 12 months | ||||||
Dividend Reinvestment Plan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares authorized per plan | 330,750 | 330,750 | |||||
2014 Restricted Stock Plan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Aggregate shares granted | 200,000 | ||||||
Shares granted | 164,537 | ||||||
Allocated share-based compensation expense | $ 289,000 | $ 173,000 | $ 457,000 | $ 305,000 | |||
Shares forfeited and available for reissuance | 5,073 | ||||||
Restricted shares vested during period | 83,574 | ||||||
Granted shares unvested | 75,890 | 75,890 | |||||
Underwritten Public Offering [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common shares issued through follow-on public offering, shares | 2,990,000 | ||||||
Common stock, price per share | $ 25 | ||||||
Net proceeds received after underwriting discount and other estimated offering expenses | $ 70,238,000 | ||||||
Net proceeds of the offering | 4,512,000 | ||||||
Aggregate gross proceeds of offering | $ 74,750,000 | $ 70,238,000 | |||||
Riverview [Member] | |||||||
Class of Stock [Line Items] | |||||||
Ratio of conversion of acquiree's shares to entity's shares | 48.33% | ||||||
Stock issued during period, shares | 4,519,776 | ||||||
Riverview [Member] | Underwritten Public Offering [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock issued during period, shares | 4,519,776 | ||||||
Treasury Stock Repurchase Program [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 15,000,000 | ||||||
Percentage of issued shares based on closing stock price | 3.50% | ||||||
Stock repurchased during period, shares | 103,912 | 202,364 | |||||
Stock repurchased at average price per share | $ 26.88 | $ 23.31 | |||||
Stock repurchase program, remaining available repurchase amount | $ 10,284,000 | $ 10,284,000 |