Peoples Financial Services (PFIS) 10-Q 4 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information
Entity Registrant Name	PEOPLES FINANCIAL SERVICES CORP.
Trading Symbol	pfis
Entity Central Index Key	1,056,943
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		7,396,163
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Cash and due from banks:
Cash and due from banks	$ 41,026	$ 39,496
Interest-bearing deposits in other banks	375	445
Total cash and due from banks	41,401	39,941
Investment securities:
Available-for-sale	256,774	259,410
Held-to-maturity: Fair value June 30, 2017, $10,221; December 31, 2016, $10,714	9,868	10,517
Total investment securities	266,642	269,927
Loans, net	1,597,362	1,532,965
Less: allowance for loan losses	17,802	15,961
Net loans	1,579,560	1,517,004
Premises and equipment, net	35,892	33,260
Accrued interest receivable	6,206	6,228
Goodwill	63,370	63,370
Intangible assets, net	3,685	4,211
Other assets	68,002	65,501
Total assets	2,064,758	1,999,442
Deposits:
Noninterest-bearing	356,435	353,686
Interest-bearing	1,282,998	1,235,071
Total deposits	1,639,433	1,588,757
Short-term borrowings	91,500	82,700
Long-term debt	57,160	58,134
Accrued interest payable	431	462
Other liabilities	12,725	12,771
Total liabilities	1,801,249	1,742,824
Stockholders' equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,396,163 shares at June 30, 2017 and 7,394,143 shares at December 31, 2016	14,792	14,788
Capital surplus	134,937	134,871
Retained earnings	116,988	111,114
Accumulated other comprehensive loss	(3,208)	(4,155)
Total stockholders' equity	263,509	256,618
Total liabilities and stockholders' equity	$ 2,064,758	$ 1,999,442

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position
Held-to-maturity, Fair value	$ 10,221	$ 10,714
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,396,163	7,394,143
Common stock, shares outstanding	7,396,163	7,394,143

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest and fees on loans:
Taxable	$ 15,945	$ 14,760	$ 31,486	$ 29,106
Tax-exempt	795	780	1,521	1,531
Interest and dividends on investment securities:
Taxable	719	617	1,416	1,304
Tax-exempt	752	875	1,546	1,750
Dividends	12	11	24	21
Interest on interest-bearing deposits in other banks	38	15	67	32
Total interest income	18,261	17,058	36,060	33,744
Interest expense:
Interest on deposits	1,529	1,322	2,963	2,605
Interest on short-term borrowings	248	89	422	166
Interest on long-term debt	349	354	697	714
Total interest expense	2,126	1,765	4,082	3,485
Net interest income	16,135	15,293	31,978	30,259
Provision for loan losses	1,200	1,200	2,400	2,400
Net interest income after provision for loan losses	14,935	14,093	29,578	27,859
Noninterest income:
Service charges, fees and commissions	1,682	1,527	3,254	2,971
Merchant services income	1,178	1,038	2,193	1,952
Commission and fees on fiduciary activities	494	474	1,002	956
Wealth management income	348	296	667	708
Mortgage banking income	204	195	383	399
Life insurance investment income	195	202	384	395
Net gain on sale of investment securities available-for-sale		381		623
Net gain on sale of merchant services business	2,278		2,278
Total noninterest income	6,379	4,113	10,161	8,004
Noninterest expense:
Salaries and employee benefits expense	7,026	5,904	13,301	11,236
Net occupancy and equipment expense	2,450	2,245	4,844	4,682
Merchant services expense	1,033	748	1,763	1,380
Amortization of intangible assets	258	297	526	602
Other expenses	3,235	2,919	5,924	5,831
Total noninterest expense	14,002	12,113	26,358	23,731
Income before income taxes	7,312	6,093	13,381	12,132
Income tax expense	1,653	1,238	2,922	2,395
Net income	5,659	4,855	10,459	9,737
Other comprehensive income:
Unrealized gain on investment securities available-for-sale	1,184	1,128	1,457	2,123
Reclassification adjustment for net gain on sales included in net income		(381)		(623)
Other comprehensive income	1,184	747	1,457	1,500
Income tax related to other comprehensive loss	415	261	510	525
Other comprehensive income, net of income taxes	769	486	947	975
Comprehensive income	$ 6,428	$ 5,341	$ 11,406	$ 10,712
Net income:
Basic	$ 0.76	$ 0.66	$ 1.41	$ 1.32
Diluted	$ 0.76	$ 0.66	$ 1.41	$ 1.32
Average common shares outstanding:
Basic	7,396,163	7,395,127	7,395,158	7,399,318
Diluted	7,396,163	7,395,127	7,395,158	7,399,318
Dividends declared	$ 0.31	$ 0.31	$ 0.62	$ 0.62

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2015	$ 14,821	$ 135,371	$ 100,701	$ (2,125)	$ 248,768
Stock based compensation		35			35
Net income			9,737		9,737
Other comprehensive income, net of income taxes				975	975
Dividends declared			(4,586)		(4,586)
Shares retired	(33)	(571)			(604)
Balance at Jun. 30, 2016	14,788	134,835	105,852	(1,150)	254,325
Balance at Dec. 31, 2016	14,788	134,871	111,114	(4,155)	256,618
Stock based compensation		70			70
Net income			10,459		10,459
Other comprehensive income, net of income taxes				947	947
Dividends declared			(4,585)		(4,585)
Common stock grants awarded, net of unearned compensation of $81: 2,020 shares	4	(4)
Balance at Jun. 30, 2017	$ 14,792	$ 134,937	$ 116,988	$ (3,208)	$ 263,509

Consolidated Statements of Cha6

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Stockholders' Equity
Dividends declared (in dollars per share)	$ 0.31	$ 0.31	$ 0.62	$ 0.62
Common stock grants awarded, shares			2,020
Unearned compensation	$ 81		$ 81
Share retired, shares				16,463

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 10,459	$ 9,737
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	884	788
Amortization of deferred loan costs	427	362
Amortization of intangibles	526	602
Amortization of loss on investment tax credits	235	244
Provision for loan losses	2,400	2,400
Net gain on sale of other real estate owned	(5)	(9)
Loans originated for sale	(10,411)	(10,709)
Proceeds from sale of loans originated for sale	10,520	11,108
Net gain on sale of loans originated for sale	(109)	(399)
Net amortization of investment securities	1,469	1,997
Net gain on sale of investment securities available-for-sale		(623)
Net gain on sale of merchant services business	(2,278)
Life insurance investment income	(384)	(395)
Stock based compensation	70	35
Net change in:
Accrued interest receivable	22	(156)
Other assets	(2,136)	(1,654)
Accrued interest payable	(31)	(107)
Other liabilities	(116)	(804)
Net cash provided by operating activities	11,542	12,417
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale		27,408
Proceeds from repayments of investment securities:
Available-for-sale	21,594	23,013
Held-to-maturity	637	830
Purchases of investment securities:
Available-for-sale	(18,958)	(16,725)
Net purchase of restricted equity securities	(703)	(1,475)
Net increase in lending activities	(65,625)	(125,528)
Investment in low income housing investment tax credits		(2,050)
Purchases of premises and equipment	(3,516)	(2,141)
Purchase of investment in life insurance		(1,500)
Proceeds from the sale of merchant services business	2,300
Proceeds from sale of other real estate owned	272	195
Net cash used in investing activities	(63,999)	(97,973)
Cash flows from financing activities:
Net increase in deposits	50,676	41,053
Repayment of long-term debt	(974)	(1,122)
Net increase in short-term borrowings	8,800	47,975
Retirement of common stock		(604)
Cash dividends paid	(4,585)	(4,586)
Net cash provided by financing activities	53,917	82,716
Net increase (decrease) in cash and cash equivalents	1,460	(2,840)
Cash and cash equivalents at beginning of period	39,941	32,917
Cash and cash equivalents at end of period	41,401	30,077
Cash paid during the period for:
Interest	4,113	3,592
Income taxes	3,100	1,800
Noncash items:
Transfers of loans to other real estate	$ 279	$ 761

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2017
Summary of significant accounting policies
Summary of significant accounting policies	1. Summary of significan Nature of operations: Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“Peoples Bank”), including its subsidiary, Peoples Advisors, LLC (collectively, the “Company” or “Peoples”). The Company services its retail and commercial customers through twenty-six full-service community banking offices located within the Lackawanna, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York. Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP’) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the operating results or financial position of the Company. The operating results and financial position of the Company for the three and six months ended and as of June 30, 2017, are not necessarily indicative of the results of operations and financial position that may be expected in the future. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of deferred tax assets, determination of other-than-temporary impairment losses on securities, impairment of goodwill and fair value of assets acquired and liabilities assumed in business combinations. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, reference is made to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Recent accounting standards: In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. During 2016, the FASB issued ASU Nos. 2016-10, 2016-12 and 2016-20 that provide additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. ASU 2014-09 will become effective for the Company for the annual period beginning after December 15, 2017 and for interim periods within the annual period. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. The Company has not selected a transition method. The Company has completed an evaluation of its revenue-producing contracts and determined they are primarily agreements that are not within the scope of this standard. As a result, the Company does not expect the adoption of this standard to have a material impact to the Company’s reported revenues and interest income. The Company is continuing to evaluate the impact on other revenue and income sources. In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, “Financial Instruments – Overall . ” The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public businesses entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of the adoption of this guidance on the Company’s financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases”. From the lessee's perspective, the new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company’s initial findings conclude that the new pronouncement will not have a significant impact on its consolidated financial statements as the current projected minimum lease payments under existing lease contracts subject to the new pronouncement are less than one percent of its current assets. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU will have a significant impact on the Company’s calculation and accounting for its Allowance for Loan Losses as well as credit losses related to investment securities available-for-sale. A summary of significant provisions of this ASU is as follows: · The ASU requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented, net of a valuation allowance for credit losses, at an amount expected to be collected on the financial asset(s), and that the income statement include the measurement of credit losses for newly recognized financial assets as well as changes in expected losses on previously recognized financial assets. The provisions of this ASU require measurement of expected credit losses based on relevant information including past events, historical experience, current conditions, and reasonable and supportive forecasts that affect the collectability of the asset. The provisions of this ASU differ from current U.S. GAAP in that current U.S. GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. · The amendments in the Update retain many of the disclosure requirements related to credit quality in current U.S. GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the Update requires that disclosure of credit quality indicators in relation to the amortized cost of financing receivables, a current requirement, be further disaggregated by year of origination. · This ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which the fair value is below amortized cost. For purchased investment securities available-for-sale with a more-than-insignificant amount of credit deterioration since origination, the ASU requires an allowance be determined in a manner similar to other investment securities available-for-sale; however, the initial allowance would be added to the purchase price, with only subsequent changes in the allowance recorded in credit loss expense, and interest income recognized at the effective rate excluding the discount embedded in the purchase price related to estimated credit losses at acquisition. · This ASU will be effective for the Company for interim and annual periods beginning in the first quarter of 2020. Earlier adoption is permitted beginning in the first quarter of 2019. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. The Company cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on our financial condition or results of operations; however, it is anticipated that the allowance will increase upon adoption and that the increased allowance level will decrease regulatory capital and ratios. In June 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) –Classification of Certain Cash Receipts and Cash Payments. This Update provides clarification regarding eight specific cash flow issues with the objective of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. For the Company, the amendments in this Update are effective beginning in the first quarter 2018. The amendments in this Update should be applied using a retroactive transition method to each period presented. The Company anticipates there will be no adjustments to the Consolidated Statements of Cash Flows, as previously reported, as a result of the clarifications provided in the Update. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) to simplify the accounting for goodwill impairment. This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this ASU, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under current guidance. This Update will become effective for the Company’s annual and interim goodwill impairment tests beginning in the first quarter of 2020.

Other comprehensive loss

Other comprehensive loss	6 Months Ended
	Jun. 30, 2017
Other comprehensive loss
Other comprehensive loss	2. Other comprehensive loss: The components of other comprehensive loss and their related tax effects are reported in the Consolidated Statements of Income and Comprehensive Income. The accumulated other comprehensive loss included in the Consolidated Balance Sheets relates to net unrealized gains and losses on investment securities available-for-sale and benefit plan adjustments. The components of accumulated other comprehensive loss included in stockholders’ equity at June 30, 2017 and December 31, 2016 is as follows: June 30, 2017 December 31, 2016 Net unrealized gain on investment securities available-for-sale $ 2,010 $ 553 Income tax 703 193 Net of income taxes 1,307 360 Benefit plan adjustments (6,946) (6,946) Income tax (2,431) (2,431) Net of income taxes (4,515) (4,515) Accumulated other comprehensive loss $ (3,208) $ (4,155) Other comprehensive income (loss) and related tax effects for the three and six months ended June 30, 2017 and 2016 is as follows: Three Months Ended June 30, 2017 2016 Unrealized gain on investment securities available-for-sale $ 1,184 $ 1,128 Net gain on the sale of investment securities available-for-sale(1) (381) Other comprehensive income gain before taxes 1,184 747 Income tax expense 415 261 Other comprehensive income $ 769 $ 486 Six Months Ended June 30, 2017 2016 Unrealized gain on investment securities available-for-sale $ 1,457 $ 2,123 Net gain on the sale of investment securities available-for-sale(1) (623) Other comprehensive income gain before taxes 1,457 1,500 Income tax expense 510 525 Other comprehensive income $ 947 $ 975 (1)

Earnings per share

Earnings per share	6 Months Ended
	Jun. 30, 2017
Earnings per share
Earnings per share	3. Earnings per share: Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. There were no shares considered anti-dilutive for the three and six month periods ended June 30, 2017 and 2016. 2017 2016 For the Three Months Ended June 30, Basic Diluted Basic Diluted Net Income $ 5,659 $ 5,659 $ 4,855 $ 4,855 Average common shares outstanding 7,396,163 7,396,163 7,395,127 7,395,127 Earnings per share $ 0.76 $ 0.76 $ 0.66 $ 0.66 2017 2016 For the Six Months Ended June 30 Basic Diluted Basic Diluted Net Income $ 10,459 $ 10,459 $ 9,737 $ 9,737 Average common shares outstanding 7,395,158 7,395,158 7,399,318 7,399,318 Earnings per share $ 1.41 $ 1.41 $ 1.32 $ 1.32

Investment securities

Investment securities	6 Months Ended
	Jun. 30, 2017
Investment securities
Investment securities	4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at June 30, 2017 and December 31, 2016 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2017 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 20,047 $ 56 $ 23 $ 20,080 U.S. Government-sponsored enterprises 81,495 96 847 80,744 State and municipals: Taxable 14,629 667 1 15,295 Tax-exempt 102,737 2,191 59 104,869 Mortgage-backed securities: U.S. Government agencies 17,576 31 29 17,578 U.S. Government-sponsored enterprises 18,280 39 111 18,208 Total $ 254,764 $ 3,080 $ 1,070 $ 256,774 Held-to-maturity: Tax-exempt state and municipals $ 6,860 $ 163 $ 3 $ 7,020 Mortgage-backed securities: U.S. Government agencies 61 61 U.S. Government-sponsored enterprises 2,947 193 3,140 Total $ 9,868 $ 356 $ 3 $ 10,221 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 7,570 $ 132 $ 7,438 U.S. Government-sponsored enterprises 82,314 $ 79 1,480 80,913 State and municipals: Taxable 14,698 566 39 15,225 Tax-exempt 110,931 2,309 640 112,600 Mortgage-backed securities: U.S. Government agencies 21,041 48 47 21,042 U.S. Government-sponsored enterprises 22,303 48 159 22,192 Total $ 258,857 $ 3,050 $ 2,497 $ 259,410 Held-to-maturity: Tax-exempt state and municipals $ 6,862 $ 72 $ 67 $ 6,867 Mortgage-backed securities: U.S. Government agencies 68 1 69 U.S. Government-sponsored enterprises 3,587 191 3,778 Total $ 10,517 $ 264 $ 67 $ 10,714 The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at June 30, 2017, is summarized as follows: Fair June 30, 2017 Value Within one year $ 33,157 After one but within five years 127,433 After five but within ten years 45,799 After ten years 14,599 220,988 Mortgage-backed securities 35,786 Total $ 256,774 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at June 30, 2017, is summarized as follows: Amortized Fair June 30, 2017 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,860 $ 7,020 6,860 7,020 Mortgage-backed securities 3,008 3,201 Total $ 9,868 $ 10,221 Securities with a carrying value of $138,272 and $144,750 at June 30, 2017 and December 31, 2016, respectively, were pledged to secure public deposits and certain other deposits as required or permitted by law. Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At June 30, 2017 and December 31, 2016, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. Government agencies and sponsored enterprises that exceeded 10.0 percent of stockholders’ equity. The fair value and gross unrealized losses of investment securities with unrealized losses for which an other-than-temporary impairment (“OTTI”) has not been recognized at June 30, 2017 and December 31, 2016, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2017 Value Losses Value Losses Value Losses U.S. Treasury securities $ 2,501 $ 23 $ 2,501 $ 23 U.S. Government-sponsored enterprises 65,845 823 $ 1,067 $ 24 66,912 847 State and municipals: Taxable 554 1 554 1 Tax-exempt 15,898 62 15,898 62 Mortgage-backed securities: U.S. Government agencies 2,848 8 3,503 21 6,351 29 U.S. Government-sponsored enterprises 11,218 50 2,327 61 13,545 111 Total $ 98,864 $ 967 $ 6,897 $ 106 $ 105,761 $ 1,073 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value Losses Value Losses Value Losses U.S. Treasury securities $ 7,438 $ 132 $ 7,438 $ 132 U.S. Government-sponsored enterprises 59,460 1,480 59,460 1,480 State and municipals: Taxable 1,035 39 1,035 39 Tax-exempt 55,166 707 $ 226 55,392 707 Mortgage-backed securities: U.S. Government agencies 5,917 27 1,496 $ 7,413 47 U.S. Government-sponsored enterprises 16,412 85 2,712 19,124 159 Total $ 145,428 $ 2,470 $ 4,434 $ 94 $ 149,862 $ 2,564 The Company had 80 investment securities, consisting of 27 tax-exempt state and municipal obligations, one U.S. Treasury security, one taxable municipal obligation, 25 U.S. Government-sponsored enterprise securities, and 26 mortgage-backed securities that were in unrealized loss positions at June 30, 2017. Of these securities, eleven mortgage-backed securities and one U.S. Government-sponsored enterprise security were in a continuous unrealized loss position for twelve months or more. Management does not consider the unrealized losses on the debt securities, as a result of changes in interest rates, to be OTTI based on historical evidence that indicates the cost of these securities is recoverable within a reasonable period of time in relation to normal cyclical changes in the market rates of interest. Moreover, because there has been no material change in the credit quality of the issuers or other events or circumstances that may cause a significant adverse impact on the fair value of these securities, and management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider the unrealized losses to be OTTI at June 30, 2017. There was no OTTI recognized for the three or six months ended June 30, 2017 and 2016. The Company had 163 investment securities, consisting of 107 tax-exempt state and municipal obligations, two taxable state and municipal obligations, two U.S. Treasury securities, 22 U.S. Government-sponsored enterprise securities and 30 mortgage-backed securities that were in unrealized loss positions at December 31, 2016. Of these securities, nine mortgage-backed securities, and two tax-exempt state and municipal securities were in a continuous unrealized loss position for twelve months or more.

Loans, net and allowance for lo

Loans, net and allowance for loan losses	6 Months Ended
	Jun. 30, 2017
Loans, net and allowance for loan losses
Loans, net and allowance for loan losses	5. Loans, net and allowance for loan losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at June 30, 2017 and December 31, 2016 are summarized as follows. Net deferred loan costs were $542 and $579 at June 30, 2017 and December 31, 2016. June 30, 2017 December 31, 2016 Commercial $ 452,180 $ 408,814 Real estate: Commercial 719,652 700,144 Residential 286,232 289,781 Consumer 139,298 134,226 Total $ 1,597,362 $ 1,532,965 The changes in the allowance for loan losses account by major classification of loan for the three and six months ended June 30, 2017 and 2016 are summarized as follows: Real estate June 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance April 1, 2017 $ 4,129 $ 6,291 $ 4,978 $ 1,571 $ $ 16,969 Charge-offs (32) (242) (8) (149) (431) Recoveries 6 22 4 32 64 Provisions 323 516 222 139 1,200 Ending balance $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ $ 17,802 Real estate June 30, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance April 1, 2016 $ 3,322 $ 4,616 $ 4,359 $ 1,646 $ 215 $ 14,158 Charge-offs (393) (48) (126) (65) (632) Recoveries 34 14 10 15 73 Provisions 300 495 222 83 100 1,200 Ending balance $ 3,263 $ 5,077 $ 4,465 $ 1,679 $ 315 $ 14,799 Real estate June 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2017 $ 3,799 $ 5,847 $ 4,707 1,608 15,961 Charge-offs (32) (367) (23) (320) (742) Recoveries 13 55 26 89 183 Provisions 646 1,052 486 216 2,400 Ending balance $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ $ 17,802 Real estate June 30, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2016 $ 3,042 $ 4,245 $ 4,082 $ 1,583 $ 23 $ 12,975 Charge-offs (396) (103) (126) (130) (755) Recoveries 36 30 35 78 179 Provisions 581 905 474 148 292 2,400 Ending balance $ 3,263 $ 5,077 $ 4,465 $ 1,679 $ 315 $ 14,799 The allocation of the allowance for loan losses and the related loans by major classifications of loans at June 30, 2017 and December 31, 2016 is summarized as follows: Real estate June 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ $ 17,802 Ending balance: individually evaluated for impairment 322 509 461 43 1,335 Ending balance: collectively evaluated for impairment 4,104 6,078 4,735 1,550 16,467 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 452,180 $ 719,652 $ 286,232 $ 139,298 $ $ 1,597,362 Ending balance: individually evaluated for impairment 1,944 3,951 3,285 232 9,412 Ending balance: collectively evaluated for impairment 449,868 715,056 282,915 139,066 1,586,905 Ending balance: loans acquired with deteriorated credit quality $ 368 $ 645 $ 32 $ $ $ 1,045 Real estate December 31, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 3,799 $ 5,847 $ 4,707 $ 1,608 $ $ 15,961 Ending balance: individually evaluated for impairment 225 1,197 520 1,942 Ending balance: collectively evaluated for impairment 3,574 4,650 4,187 1,608 14,019 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 408,814 $ 700,144 $ 289,781 $ 134,226 $ $ 1,532,965 Ending balance: individually evaluated for impairment 1,724 5,820 3,543 155 11,242 Ending balance: collectively evaluated for impairment 406,127 692,987 286,201 134,071 1,519,386 Ending balance: loans acquired with deteriorated credit quality $ 963 $ 1,337 $ 37 $ $ $ 2,337 The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: · Pass- A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. · Special Mention- A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. · Substandard- A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. · Doubtful – A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. · Loss- A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The following tables present the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at June 30, 2017 and December 31, 2016: Special June 30, 2017 Pass Mention Substandard Doubtful Total Commercial $ 444,700 $ 2,976 $ 4,504 $ $ 452,180 Real estate: Commercial 698,625 8,590 12,437 719,652 Residential 279,578 143 6,511 286,232 Consumer 139,154 144 139,298 Total $ 1,562,057 $ 11,709 $ 23,596 $ $ 1,597,362 Special December 31, 2016 Pass Mention Substandard Doubtful Total Commercial $ 398,867 $ 6,222 $ 3,725 $ $ 408,814 Real estate: Commercial 674,914 10,392 14,838 700,144 Residential 282,737 233 6,811 289,781 Consumer 133,983 243 134,226 Total $ 1,490,501 $ 16,847 $ 25,617 $ $ 1,532,965 Information concerning nonaccrual loans by major loan classification at June 30, 2017 and December 31, 2016 is summarized as follows: June 30, 2017 December 31, 2016 Commercial $ 1,285 $ 934 Real estate: Commercial 4,115 7,016 Residential 2,645 3,003 Consumer 232 155 Total $ 8,277 $ 11,108 The major classifications of loans by past due status are summarized as follows: Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and June 30, 2017 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 501 $ 105 $ 1,285 $ 1,891 $ 450,289 $ 452,180 Real estate: Commercial 2,003 71 4,115 6,189 713,463 719,652 Residential 964 474 3,212 4,650 281,582 286,232 $ 567 Consumer 964 346 500 1,810 137,488 139,298 268 Total $ 4,432 $ 996 $ 9,112 $ 14,540 $ 1,582,822 $ 1,597,362 $ 835 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2016 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 249 $ 75 $ 934 $ 1,258 $ 407,556 $ 408,814 Real estate: Commercial 4,782 527 7,016 12,325 687,819 700,144 Residential 2,100 354 3,561 6,015 283,766 289,781 $ 558 Consumer 962 259 441 1,662 132,564 134,226 286 Total $ 8,093 $ 1,215 $ 11,952 $ 21,260 $ 1,511,705 $ 1,532,965 $ 844 The following tables summarize information concerning impaired loans as of and for the three and six months ended June 30, 2017 and June 30, 2016, and as of and for the year ended, December 31, 2016 by major loan classification: This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2017 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 1,580 $ 2,197 $ 1,173 $ 18 $ 1,583 $ 35 Real estate: Commercial 3,058 3,706 3,387 7 3,045 13 Residential 2,083 2,265 2,216 4 2,212 6 Consumer 188 188 186 176 Total 6,909 8,356 6,962 29 7,016 54 With an allowance recorded: Commercial 732 732 $ 321 1,328 979 Real estate: Commercial 1,538 1,538 509 1,505 3 2,601 7 Residential 1,234 1,234 461 1,139 8 1,218 14 Consumer 44 44 44 34 22 Total 3,548 3,548 1,335 4,006 11 4,820 21 Commercial 2,312 2,929 321 2,501 18 2,562 35 Real estate: Commercial 4,596 5,244 509 4,892 10 5,646 20 Residential 3,317 3,499 461 3,355 12 3,430 20 Consumer 232 232 44 220 198 Total $ 10,457 $ 11,904 $ 1,335 $ 10,968 $ 40 $ 11,836 $ 75 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2016 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,404 $ 3,213 $ 1,461 $ 48 Real estate: Commercial 2,364 3,018 4,300 71 Residential 2,205 2,388 2,133 35 Consumer 155 155 147 Total 7,128 8,774 8,041 154 With an allowance recorded: Commercial 283 283 $ 225 859 Real estate: Commercial 4,793 4,793 1,197 2,366 2 Residential 1,375 1,376 520 1,185 7 Consumer 50 Total 6,451 6,452 1,942 4,460 9 Commercial 2,687 3,496 225 2,320 48 Real estate: Commercial 7,157 7,811 1,197 6,666 73 Residential 3,580 3,764 520 3,318 42 Consumer 155 155 197 Total $ 13,579 $ 15,226 $ 1,942 $ 12,501 $ 163 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2016 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 1,296 $ 2,378 $ 1,235 $ $ 1,249 Real estate: Commercial 5,517 6,181 4,340 3,643 Residential 1,941 2,124 2,079 2,355 Consumer 157 157 123 92 Total 8,911 10,840 7,777 47 7,339 102 With an allowance recorded: Commercial 615 615 $ 615 878 923 $ Real estate: Commercial 899 899 405 1,964 2,400 Residential 1,279 1,279 723 1,136 2 1,295 4 Consumer 71 71 71 80 92 Total 2,864 2,864 1,814 4,058 2 4,710 4 Commercial 1,911 2,993 615 2,113 14 2,172 30 Real estate: Commercial 6,416 7,080 405 6,304 30 6,043 61 Residential 3,220 3,403 723 3,215 5 3,650 15 Consumer 228 228 71 203 184 Total $ 11,775 $ 13,704 $ 1,814 $ 11,835 $ 49 $ 12,049 $ 106 Included in the commercial loan and commercial and residential real estate categories are troubled debt restructurings that are classified as impaired. Troubled debt restructurings totaled $2,152 at June 30, 2017, $1,909 at December 31, 2016 and $2,701 at June 30, 2016. Troubled debt restructured loans are loans with original terms, interest rate, or both, that have been modified as a result of a deterioration in the borrower’s financial condition and a concession has been granted that the Company would not otherwise consider. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The Company offers a variety of modifications to borrowers that would be considered concessions. The modification categories offered generally fall within the following categories: · Rate Modification - A modification in which the interest rate is changed to a below market rate. · Term Modification - A modification in which the maturity date, timing of payments or frequency of payments is changed. · Interest Only Modification - A modification in which the loan is converted to interest only payments for a period of time. · Payment Modification - A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. · Combination Modification - Any other type of modification, including the use of multiple categories above. There was one loan modified as a troubled debt restructuring for the three months ended June 30, 2017 totaling $64. For the six months ended June 30, 2017, two loans were modified as troubled debt restructurings in the amount of $409. There were no loans modified as troubled debt restructurings for the three months ended June 30, 2016. For the six months ended June 30, 2016, there was one loan modified as a troubled debt restructuring in the amount of $75. During the three and six months ended June 30, 2017, there were no payment defaults on loans restructured within the last twelve months. During the three months ended June 30, 2016, there were no payment defaults on loans restructured within the last twelve months. During the six months ended June 30, 2016, there were two payment defaults on restructured residential real estate loans totaling $208.

Other assets and gain on sale o

Other assets and gain on sale of merchant services business	6 Months Ended
	Jun. 30, 2017
Other assets and gain on sale of merchant services business.
Other assets and gain on sale of merchant services business	6. Other assets and gain on sale of merchant services business: The components of other assets at June 30, 2017, and December 31, 2016 are summarized as follows: June 30, 2017 December 31, 2016 Other real estate owned $ 384 $ 393 Investment in residential housing program 8,077 8,312 Mortgage servicing rights 707 698 Bank owned life insurance 33,454 33,073 Restricted equity securities 7,754 7,051 Other assets 17,626 15,974 Total $ 68,002 $ 65,501 In the second quarter of 2017, the Company entered into and executed a merchant asset sales agreement with a third party to sell and transfer the Company’s merchant business. Proceeds from the sale were received on June 30, 2017 in the amount of $2,300. In connection with the sale, merchant related equipment in the amount of $22 previously included in other assets above were sold, resulting in a net gain of $2,278 to the Company which is included in noninterest income in the accompanying consolidated statements of income for the three and six months ended June 30, 2017. The sale represents the entirety of the Company’s merchant services business and the Company will no longer originate any proprietary merchant service relationships. The Company did not receive an ownership interest in the unrelated purchaser of the merchant business. The $2,300 represents the entire consideration received by the Company under the merchant asset sales agreement and there is no form of contingent consideration. Separate from the merchant asset sales agreement, the Company entered into a marketing and sales agreement with the merchant business purchaser to share in future revenue generated from the sold merchant portfolio, and from new merchant referrals.

Fair value estimates

Fair value estimates	6 Months Ended
	Jun. 30, 2017
Fair value estimates
Fair value estimates	7. Fair value estimates: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements. In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument. Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include: · Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. · Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. · Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. 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 estimate. The following methods and assumptions were used by the Company to calculate fair values and related carrying amounts of financial instruments: Cash and cash equivalents: The carrying values of cash and cash equivalents as reported on the balance sheet approximate fair value. Investment securities: The fair values of U.S. Treasury securities and marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model. Loans held for sale: The fair values of loans held for sale are based upon current delivery prices in the secondary mortgage market. Net loans: For adjustable-rate loans that re-price frequently and with no significant credit risk, fair values are based on carrying values. The fair values of other non-impaired loans are estimated using discounted cash flow analysis, using interest rates currently offered in the market for loans with similar terms to borrowers of similar credit risk. Fair values for impaired loans are estimated using discounted cash flow analysis determined by the loan review function or underlying collateral values, where applicable. Mortgage servicing rights: To determine the fair value, the Company estimates the present value of future cash flows incorporating assumptions such as cost of servicing, discount rates, prepayment speeds and default rates. Accrued interest receivable: The carrying value of accrued interest receivable as reported on the balance sheet approximates fair value. Restricted equity securities: The carrying values of restricted equity securities approximate fair value, due to the lack of marketability for these securities. Deposits: The fair values of noninterest-bearing deposits and savings, NOW and money market accounts are the amounts payable on demand at the reporting date. The fair value estimates do not include the benefit that results from such low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. The carrying values of adjustable-rate, fixed-term time deposits approximate their fair values at the reporting date. For fixed-rate time deposits, the present value of future cash flows is used to estimate fair values. The discount rates used are the current rates offered for time deposits with similar maturities. Short-term borrowings: The carrying values of short-term borrowings approximate fair value. Long-term debt: The fair value of fixed-rate long-term debt is based on the present value of future cash flows. The discount rate used is the current rate offered for long-term debt with the same maturity. Accrued interest payable: The carrying value of accrued interest payable as reported on the balance sheet approximates fair value. Off-balance sheet financial instruments: The majority of commitments to extend credit, unused portions of lines of credit and standby letters of credit carry current market interest rates if converted to loans. Because such commitments are generally unassignable of either the Company or the borrower, they only have value to the Company and the borrower. None of the commitments are subject to undue credit risk. The estimated fair values of off-balance sheet financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of off-balance sheet financial instruments was not material at June 30, 2017 and December 31, 2016. Assets and liabilities measured at fair value on a recurring basis at June 30, 2017 and December 31, 2016 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2017 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 20,080 $ 20,080 $ U.S. Government-sponsored enterprises 80,744 $ 80,744 State and Municipals: Taxable 15,295 15,295 Tax-exempt 104,869 104,869 Mortgage-backed securities: U.S. Government agencies 17,578 17,578 U.S. Government-sponsored enterprises 18,208 18,208 Total $ 256,774 $ 20,080 $ 236,694 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2016 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 7,438 $ 7,438 $ U.S. Government-sponsored enterprises 80,913 $ 80,913 State and Municipals: Taxable 15,225 15,225 Tax-exempt 112,600 112,600 Mortgage-backed securities: U.S. Government agencies 21,042 21,042 U.S. Government-sponsored enterprises 22,192 22,192 Total $ 259,410 $ 7,438 $ 251,972 $ Assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2017 and December 31, 2016 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2017 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,798 $ 1,798 Other real estate owned $ 213 $ 213 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2016 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,193 $ 3,193 Other real estate owned $ 371 $ 371 Fair values of impaired loans are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Range June 30, 2017 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,798 Appraisal of collateral Appraisal adjustments 6.3% to 97.0% (75.3)% Liquidation expenses 3.0% to 6.0% (4.8)% Other real estate owned $ 213 Appraisal of collateral Appraisal adjustments 20.0% to 38.2% (27.5)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2016 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,193 Appraisal of collateral Appraisal adjustments 18.0% to 97.0% (74.5)% Liquidation expenses 3.0% to 6.0% (5.3)% Other real estate owned $ 371 Appraisal of collateral Appraisal adjustments 25.0% to 54.6% (43.1)% Liquidation expenses 3.0% to 6.0% (5.0)% Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 Inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The carrying and fair values of the Company’s financial instruments at June 30, 2017 and December 31, 2016 and their placement within the fair value hierarchy are as follows: Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs June 30, 2017 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 41,401 $ 41,401 $ 41,401 Investment securities: Available-for-sale 256,774 256,774 20,080 $ 236,694 Held-to-maturity 9,868 10,221 10,221 Loans held for sale — Net loans 1,579,560 1,567,146 $ 1,567,146 Accrued interest receivable 6,206 6,206 6,206 Mortgage servicing rights 707 1,607 1,607 Restricted equity securities 7,754 7,754 7,754 Total $ 1,902,270 $ 1,891,109 Financial liabilities: Deposits $ 1,639,433 $ 1,638,514 $ 1,638,514 Short-term borrowings 91,500 91,500 91,500 Long-term debt 57,160 58,053 58,053 Accrued interest payable 431 431 431 Total $ 1,788,524 $ 1,788,498 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2016 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 39,941 $ 39,941 $ 39,941 Investment securities: Available-for-sale 259,410 259,410 $ 7,438 $ 251,972 Held-to-maturity 10,517 10,714 10,714 Loans held for sale Net loans 1,517,004 1,507,936 $ 1,507,936 Accrued interest receivable 6,228 6,228 6,228 Mortgage servicing rights 698 1,587 1,587 Restricted equity securities 7,051 7,051 7,051 Total $ 1,840,849 $ 1,832,867 Financial liabilities: Deposits $ 1,588,757 $ 1,587,701 $ 1,587,701 Short-term borrowings 82,700 82,700 82,700 Long-term debt 58,134 58,987 58,987 Accrued interest payable 462 462 462 Total $ 1,730,053 $ 1,729,850

Employee benefit plans

Employee benefit plans	6 Months Ended
	Jun. 30, 2017
Employee benefit plans
Employee benefit plans	8. Employee benefit plans: The Company provides an Employee Stock Ownership Plan (“ESOP”) and a Retirement Profit Sharing Plan. The Company also maintains a Supplemental Executive Retirement Plan (“SERP”) and an Employees’ Pension Plan, which is currently frozen. For the three and six months ended June 30, salaries and employee benefits expense includes approximately $307 and $603 in 2017 and $329 and $603 in 2016 relating to the employee benefit plans. Components of net periodic benefit cost are as follows: Pension Benefits Three Months Ended June 30, 2017 2016 Components of net periodic pension cost: Interest cost $ 217 $ 166 Expected return on plan assets (305) (223) Amortization of unrecognized net gain 65 52 Net periodic other benefit cost $ (23) $ (5) Pension Benefits Six Months Ended June 30, 2017 2016 Components of net periodic pension cost: Interest cost $ 217 $ 333 Expected return on plan assets (305) (447) Amortization of unrecognized net gain 65 104 Net periodic other benefit cost $ (23) $ (10) The 2008 long-term incentive plan (“2008 Plan”) allows for eligible participants to be granted equity awards. The plan was a legacy plan of Penseco Financial Services Corporation. Under the 2008 Plan the Compensation Committee of the board of directors has broad authority with respect to awards granted under the 2008 Plan, including, without limitation, the authority to: · Designate the individuals eligible to receive awards under the 2008 Plan. · Determine the size, type and date of grant for individual awards, provided that awards approved by the Committee are not effective unless and until ratified by the board of directors. · Interpret the 2008 Plan and award agreements issued with respect to individual participants. Persons eligible to receive awards under the 2008 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries, except that incentive stock option may be granted only to individuals who are employees on the date of grant. As of June 30, 2017, there were 120,116 shares of the Company’s common stock available for grant as awards pursuant to the 2008 Plan. If any outstanding awards are forfeited by the holder or canceled by the Company, the underlying shares would be available for regrant to others. The 2008 Plan authorizes grants of stock options, stock appreciation rights, dividend equivalents, performance awards, restricted stock and restricted stock units. In 2017, the Company awarded 2,020 shares of non-performance-based restricted stock, bringing the total of nonvested restricted stock awards to 14,382 shares, and 7,071 performance-based restricted stock units under the 2008 Plan. In 2016, the Company did not make any awards under the 2008 Plan. The non-performance restricted stock grants made in 2017 vest equally over three years from the grant date. Grants of restricted stock made in prior periods cliff vest after five years. The performance-based restricted stock units vest three years after the grant date and include conditions based on the Company’s three year cumulative diluted earnings per share and three-year average return on equity that determines the number of restricted stock units that may vest. The Company expenses the fair value of all-share based compensation over the requisite service period commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. The Company periodically assesses the probability of achievement of the performance criteria and adjusts the amount of compensation expense accordingly. Compensation is recognized over the vesting period and adjusted for the probability of achievement of the performance criteria. The Company classifies share-based compensation for employees within “salaries and employee benefits expense” on the Consolidated Statements of Income and Comprehensive Income. The Company recognized compensation expense of $40 for the three and six months ended June 30, 2017 and did not recognize any compensation expense for the three and six months ended June 30, 2016 for awards granted under the 2008 Plan. As of June 30, 2017, the Company had $325 of unrecognized compensation expense associated with awards. The remaining cost is expected to be recognized over a weighted average vesting period of 2.75 years.

Summary of significant accoun16

Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2017
Summary of significant accounting policies
Nature of operations	Nature of operations: Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“Peoples Bank”), including its subsidiary, Peoples Advisors, LLC (collectively, the “Company” or “Peoples”). The Company services its retail and commercial customers through twenty-six full-service community banking offices located within the Lackawanna, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York.
Basis of presentation	Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP’) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the operating results or financial position of the Company. The operating results and financial position of the Company for the three and six months ended and as of June 30, 2017, are not necessarily indicative of the results of operations and financial position that may be expected in the future. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of deferred tax assets, determination of other-than-temporary impairment losses on securities, impairment of goodwill and fair value of assets acquired and liabilities assumed in business combinations. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, reference is made to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.
Recent accounting standards	Recent accounting standards: In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. During 2016, the FASB issued ASU Nos. 2016-10, 2016-12 and 2016-20 that provide additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. ASU 2014-09 will become effective for the Company for the annual period beginning after December 15, 2017 and for interim periods within the annual period. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. The Company has not selected a transition method. The Company has completed an evaluation of its revenue-producing contracts and determined they are primarily agreements that are not within the scope of this standard. As a result, the Company does not expect the adoption of this standard to have a material impact to the Company’s reported revenues and interest income. The Company is continuing to evaluate the impact on other revenue and income sources. In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, “Financial Instruments – Overall . ” The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public businesses entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of the adoption of this guidance on the Company’s financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases”. From the lessee's perspective, the new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company’s initial findings conclude that the new pronouncement will not have a significant impact on its consolidated financial statements as the current projected minimum lease payments under existing lease contracts subject to the new pronouncement are less than one percent of its current assets. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU will have a significant impact on the Company’s calculation and accounting for its Allowance for Loan Losses as well as credit losses related to investment securities available-for-sale. A summary of significant provisions of this ASU is as follows: · The ASU requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented, net of a valuation allowance for credit losses, at an amount expected to be collected on the financial asset(s), and that the income statement include the measurement of credit losses for newly recognized financial assets as well as changes in expected losses on previously recognized financial assets. The provisions of this ASU require measurement of expected credit losses based on relevant information including past events, historical experience, current conditions, and reasonable and supportive forecasts that affect the collectability of the asset. The provisions of this ASU differ from current U.S. GAAP in that current U.S. GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. · The amendments in the Update retain many of the disclosure requirements related to credit quality in current U.S. GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the Update requires that disclosure of credit quality indicators in relation to the amortized cost of financing receivables, a current requirement, be further disaggregated by year of origination. · This ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which the fair value is below amortized cost. For purchased investment securities available-for-sale with a more-than-insignificant amount of credit deterioration since origination, the ASU requires an allowance be determined in a manner similar to other investment securities available-for-sale; however, the initial allowance would be added to the purchase price, with only subsequent changes in the allowance recorded in credit loss expense, and interest income recognized at the effective rate excluding the discount embedded in the purchase price related to estimated credit losses at acquisition. · This ASU will be effective for the Company for interim and annual periods beginning in the first quarter of 2020. Earlier adoption is permitted beginning in the first quarter of 2019. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. The Company cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on our financial condition or results of operations; however, it is anticipated that the allowance will increase upon adoption and that the increased allowance level will decrease regulatory capital and ratios. In June 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) –Classification of Certain Cash Receipts and Cash Payments. This Update provides clarification regarding eight specific cash flow issues with the objective of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. For the Company, the amendments in this Update are effective beginning in the first quarter 2018. The amendments in this Update should be applied using a retroactive transition method to each period presented. The Company anticipates there will be no adjustments to the Consolidated Statements of Cash Flows, as previously reported, as a result of the clarifications provided in the Update. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) to simplify the accounting for goodwill impairment. This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this ASU, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under current guidance. This Update will become effective for the Company’s annual and interim goodwill impairment tests beginning in the first quarter of 2020.

Other comprehensive loss (Table

Other comprehensive loss (Tables)	6 Months Ended
	Jun. 30, 2017
Other comprehensive loss
Schedule of components of accumulated other comprehensive loss	June 30, 2017 December 31, 2016 Net unrealized gain on investment securities available-for-sale $ 2,010 $ 553 Income tax 703 193 Net of income taxes 1,307 360 Benefit plan adjustments (6,946) (6,946) Income tax (2,431) (2,431) Net of income taxes (4,515) (4,515) Accumulated other comprehensive loss $ (3,208) $ (4,155)
Schedule of other comprehensive income (loss) and related tax effects	Three Months Ended June 30, 2017 2016 Unrealized gain on investment securities available-for-sale $ 1,184 $ 1,128 Net gain on the sale of investment securities available-for-sale(1) (381) Other comprehensive income gain before taxes 1,184 747 Income tax expense 415 261 Other comprehensive income $ 769 $ 486 Six Months Ended June 30, 2017 2016 Unrealized gain on investment securities available-for-sale $ 1,457 $ 2,123 Net gain on the sale of investment securities available-for-sale(1) (623) Other comprehensive income gain before taxes 1,457 1,500 Income tax expense 510 525 Other comprehensive income $ 947 $ 975 (1)

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings per share
Schedule of earnings per share	2017 2016 For the Three Months Ended June 30, Basic Diluted Basic Diluted Net Income $ 5,659 $ 5,659 $ 4,855 $ 4,855 Average common shares outstanding 7,396,163 7,396,163 7,395,127 7,395,127 Earnings per share $ 0.76 $ 0.76 $ 0.66 $ 0.66 2017 2016 For the Six Months Ended June 30 Basic Diluted Basic Diluted Net Income $ 10,459 $ 10,459 $ 9,737 $ 9,737 Average common shares outstanding 7,395,158 7,395,158 7,399,318 7,399,318 Earnings per share $ 1.41 $ 1.41 $ 1.32 $ 1.32

Investment securities (Tables)

Investment securities (Tables)	6 Months Ended
	Jun. 30, 2017
Schedule of amortized cost and fair value of investment securities aggregated by investment category	Gross Gross Amortized Unrealized Unrealized Fair June 30, 2017 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 20,047 $ 56 $ 23 $ 20,080 U.S. Government-sponsored enterprises 81,495 96 847 80,744 State and municipals: Taxable 14,629 667 1 15,295 Tax-exempt 102,737 2,191 59 104,869 Mortgage-backed securities: U.S. Government agencies 17,576 31 29 17,578 U.S. Government-sponsored enterprises 18,280 39 111 18,208 Total $ 254,764 $ 3,080 $ 1,070 $ 256,774 Held-to-maturity: Tax-exempt state and municipals $ 6,860 $ 163 $ 3 $ 7,020 Mortgage-backed securities: U.S. Government agencies 61 61 U.S. Government-sponsored enterprises 2,947 193 3,140 Total $ 9,868 $ 356 $ 3 $ 10,221 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 7,570 $ 132 $ 7,438 U.S. Government-sponsored enterprises 82,314 $ 79 1,480 80,913 State and municipals: Taxable 14,698 566 39 15,225 Tax-exempt 110,931 2,309 640 112,600 Mortgage-backed securities: U.S. Government agencies 21,041 48 47 21,042 U.S. Government-sponsored enterprises 22,303 48 159 22,192 Total $ 258,857 $ 3,050 $ 2,497 $ 259,410 Held-to-maturity: Tax-exempt state and municipals $ 6,862 $ 72 $ 67 $ 6,867 Mortgage-backed securities: U.S. Government agencies 68 1 69 U.S. Government-sponsored enterprises 3,587 191 3,778 Total $ 10,517 $ 264 $ 67 $ 10,714
Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2017 Value Losses Value Losses Value Losses U.S. Treasury securities $ 2,501 $ 23 $ 2,501 $ 23 U.S. Government-sponsored enterprises 65,845 823 $ 1,067 $ 24 66,912 847 State and municipals: Taxable 554 1 554 1 Tax-exempt 15,898 62 15,898 62 Mortgage-backed securities: U.S. Government agencies 2,848 8 3,503 21 6,351 29 U.S. Government-sponsored enterprises 11,218 50 2,327 61 13,545 111 Total $ 98,864 $ 967 $ 6,897 $ 106 $ 105,761 $ 1,073 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value Losses Value Losses Value Losses U.S. Treasury securities $ 7,438 $ 132 $ 7,438 $ 132 U.S. Government-sponsored enterprises 59,460 1,480 59,460 1,480 State and municipals: Taxable 1,035 39 1,035 39 Tax-exempt 55,166 707 $ 226 55,392 707 Mortgage-backed securities: U.S. Government agencies 5,917 27 1,496 $ 7,413 47 U.S. Government-sponsored enterprises 16,412 85 2,712 19,124 159 Total $ 145,428 $ 2,470 $ 4,434 $ 94 $ 149,862 $ 2,564
Available-for-Sale Securities
Schedule of maturity distribution of fair value	Fair June 30, 2017 Value Within one year $ 33,157 After one but within five years 127,433 After five but within ten years 45,799 After ten years 14,599 220,988 Mortgage-backed securities 35,786 Total $ 256,774
Held-to-maturity Securities
Schedule of maturity distribution of fair value	Amortized Fair June 30, 2017 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,860 $ 7,020 6,860 7,020 Mortgage-backed securities 3,008 3,201 Total $ 9,868 $ 10,221

Loans, net and allowance for 20

Loans, net and allowance for loan losses (Tables)	6 Months Ended
	Jun. 30, 2017
Loans, net and allowance for loan losses
Schedule of major classifications of loans outstanding	June 30, 2017 December 31, 2016 Commercial $ 452,180 $ 408,814 Real estate: Commercial 719,652 700,144 Residential 286,232 289,781 Consumer 139,298 134,226 Total $ 1,597,362 $ 1,532,965
Schedule of changes in allowance for loan losses account by major classification of loans	The changes in the allowance for loan losses account by major classification of loan for the three and six months ended June 30, 2017 and 2016 are summarized as follows: Real estate June 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance April 1, 2017 $ 4,129 $ 6,291 $ 4,978 $ 1,571 $ $ 16,969 Charge-offs (32) (242) (8) (149) (431) Recoveries 6 22 4 32 64 Provisions 323 516 222 139 1,200 Ending balance $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ $ 17,802 Real estate June 30, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance April 1, 2016 $ 3,322 $ 4,616 $ 4,359 $ 1,646 $ 215 $ 14,158 Charge-offs (393) (48) (126) (65) (632) Recoveries 34 14 10 15 73 Provisions 300 495 222 83 100 1,200 Ending balance $ 3,263 $ 5,077 $ 4,465 $ 1,679 $ 315 $ 14,799 Real estate June 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2017 $ 3,799 $ 5,847 $ 4,707 1,608 15,961 Charge-offs (32) (367) (23) (320) (742) Recoveries 13 55 26 89 183 Provisions 646 1,052 486 216 2,400 Ending balance $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ $ 17,802 Real estate June 30, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2016 $ 3,042 $ 4,245 $ 4,082 $ 1,583 $ 23 $ 12,975 Charge-offs (396) (103) (126) (130) (755) Recoveries 36 30 35 78 179 Provisions 581 905 474 148 292 2,400 Ending balance $ 3,263 $ 5,077 $ 4,465 $ 1,679 $ 315 $ 14,799 The allocation of the allowance for loan losses and the related loans by major classifications of loans at June 30, 2017 and December 31, 2016 is summarized as follows: Real estate June 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ $ 17,802 Ending balance: individually evaluated for impairment 322 509 461 43 1,335 Ending balance: collectively evaluated for impairment 4,104 6,078 4,735 1,550 16,467 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 452,180 $ 719,652 $ 286,232 $ 139,298 $ $ 1,597,362 Ending balance: individually evaluated for impairment 1,944 3,951 3,285 232 9,412 Ending balance: collectively evaluated for impairment 449,868 715,056 282,915 139,066 1,586,905 Ending balance: loans acquired with deteriorated credit quality $ 368 $ 645 $ 32 $ $ $ 1,045 Real estate December 31, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 3,799 $ 5,847 $ 4,707 $ 1,608 $ $ 15,961 Ending balance: individually evaluated for impairment 225 1,197 520 1,942 Ending balance: collectively evaluated for impairment 3,574 4,650 4,187 1,608 14,019 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 408,814 $ 700,144 $ 289,781 $ 134,226 $ $ 1,532,965 Ending balance: individually evaluated for impairment 1,724 5,820 3,543 155 11,242 Ending balance: collectively evaluated for impairment 406,127 692,987 286,201 134,071 1,519,386 Ending balance: loans acquired with deteriorated credit quality $ 963 $ 1,337 $ 37 $ $ $ 2,337
Schedule of major classification of loans portfolio summarized by credit quality	Special June 30, 2017 Pass Mention Substandard Doubtful Total Commercial $ 444,700 $ 2,976 $ 4,504 $ $ 452,180 Real estate: Commercial 698,625 8,590 12,437 719,652 Residential 279,578 143 6,511 286,232 Consumer 139,154 144 139,298 Total $ 1,562,057 $ 11,709 $ 23,596 $ $ 1,597,362 Special December 31, 2016 Pass Mention Substandard Doubtful Total Commercial $ 398,867 $ 6,222 $ 3,725 $ $ 408,814 Real estate: Commercial 674,914 10,392 14,838 700,144 Residential 282,737 233 6,811 289,781 Consumer 133,983 243 134,226 Total $ 1,490,501 $ 16,847 $ 25,617 $ $ 1,532,965
Schedule of information concerning nonaccrual loans by major loan classification	June 30, 2017 December 31, 2016 Commercial $ 1,285 $ 934 Real estate: Commercial 4,115 7,016 Residential 2,645 3,003 Consumer 232 155 Total $ 8,277 $ 11,108
Schedule of major classifications of loans by past due status	Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and June 30, 2017 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 501 $ 105 $ 1,285 $ 1,891 $ 450,289 $ 452,180 Real estate: Commercial 2,003 71 4,115 6,189 713,463 719,652 Residential 964 474 3,212 4,650 281,582 286,232 $ 567 Consumer 964 346 500 1,810 137,488 139,298 268 Total $ 4,432 $ 996 $ 9,112 $ 14,540 $ 1,582,822 $ 1,597,362 $ 835 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2016 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 249 $ 75 $ 934 $ 1,258 $ 407,556 $ 408,814 Real estate: Commercial 4,782 527 7,016 12,325 687,819 700,144 Residential 2,100 354 3,561 6,015 283,766 289,781 $ 558 Consumer 962 259 441 1,662 132,564 134,226 286 Total $ 8,093 $ 1,215 $ 11,952 $ 21,260 $ 1,511,705 $ 1,532,965 $ 844
Summarized information concerning impaired loans	This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2017 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 1,580 $ 2,197 $ 1,173 $ 18 $ 1,583 $ 35 Real estate: Commercial 3,058 3,706 3,387 7 3,045 13 Residential 2,083 2,265 2,216 4 2,212 6 Consumer 188 188 186 176 Total 6,909 8,356 6,962 29 7,016 54 With an allowance recorded: Commercial 732 732 $ 321 1,328 979 Real estate: Commercial 1,538 1,538 509 1,505 3 2,601 7 Residential 1,234 1,234 461 1,139 8 1,218 14 Consumer 44 44 44 34 22 Total 3,548 3,548 1,335 4,006 11 4,820 21 Commercial 2,312 2,929 321 2,501 18 2,562 35 Real estate: Commercial 4,596 5,244 509 4,892 10 5,646 20 Residential 3,317 3,499 461 3,355 12 3,430 20 Consumer 232 232 44 220 198 Total $ 10,457 $ 11,904 $ 1,335 $ 10,968 $ 40 $ 11,836 $ 75 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2016 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,404 $ 3,213 $ 1,461 $ 48 Real estate: Commercial 2,364 3,018 4,300 71 Residential 2,205 2,388 2,133 35 Consumer 155 155 147 Total 7,128 8,774 8,041 154 With an allowance recorded: Commercial 283 283 $ 225 859 Real estate: Commercial 4,793 4,793 1,197 2,366 2 Residential 1,375 1,376 520 1,185 7 Consumer 50 Total 6,451 6,452 1,942 4,460 9 Commercial 2,687 3,496 225 2,320 48 Real estate: Commercial 7,157 7,811 1,197 6,666 73 Residential 3,580 3,764 520 3,318 42 Consumer 155 155 197 Total $ 13,579 $ 15,226 $ 1,942 $ 12,501 $ 163 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2016 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 1,296 $ 2,378 $ 1,235 $ $ 1,249 Real estate: Commercial 5,517 6,181 4,340 3,643 Residential 1,941 2,124 2,079 2,355 Consumer 157 157 123 92 Total 8,911 10,840 7,777 47 7,339 102 With an allowance recorded: Commercial 615 615 $ 615 878 923 $ Real estate: Commercial 899 899 405 1,964 2,400 Residential 1,279 1,279 723 1,136 2 1,295 4 Consumer 71 71 71 80 92 Total 2,864 2,864 1,814 4,058 2 4,710 4 Commercial 1,911 2,993 615 2,113 14 2,172 30 Real estate: Commercial 6,416 7,080 405 6,304 30 6,043 61 Residential 3,220 3,403 723 3,215 5 3,650 15 Consumer 228 228 71 203 184 Total $ 11,775 $ 13,704 $ 1,814 $ 11,835 $ 49 $ 12,049 $ 106

Other assets and gain on sale21

Other assets and gain on sale of merchant services business (Tables)	6 Months Ended
	Jun. 30, 2017
Other assets and gain on sale of merchant services business.
Schedule of components of other assets	June 30, 2017 December 31, 2016 Other real estate owned $ 384 $ 393 Investment in residential housing program 8,077 8,312 Mortgage servicing rights 707 698 Bank owned life insurance 33,454 33,073 Restricted equity securities 7,754 7,051 Other assets 17,626 15,974 Total $ 68,002 $ 65,501

Fair value estimates (Tables)

Fair value estimates (Tables)	6 Months Ended
	Jun. 30, 2017
Fair value estimates
Schedule of assets and liabilities measured at fair value on a recurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2017 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 20,080 $ 20,080 $ U.S. Government-sponsored enterprises 80,744 $ 80,744 State and Municipals: Taxable 15,295 15,295 Tax-exempt 104,869 104,869 Mortgage-backed securities: U.S. Government agencies 17,578 17,578 U.S. Government-sponsored enterprises 18,208 18,208 Total $ 256,774 $ 20,080 $ 236,694 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2016 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 7,438 $ 7,438 $ U.S. Government-sponsored enterprises 80,913 $ 80,913 State and Municipals: Taxable 15,225 15,225 Tax-exempt 112,600 112,600 Mortgage-backed securities: U.S. Government agencies 21,042 21,042 U.S. Government-sponsored enterprises 22,192 22,192 Total $ 259,410 $ 7,438 $ 251,972 $
Schedule of assets and liabilities measured at fair value on a nonrecurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2017 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,798 $ 1,798 Other real estate owned $ 213 $ 213 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2016 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,193 $ 3,193 Other real estate owned $ 371 $ 371
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis	Quantitative Information about Level 3 Fair Value Measurements Fair Value Range June 30, 2017 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,798 Appraisal of collateral Appraisal adjustments 6.3% to 97.0% (75.3)% Liquidation expenses 3.0% to 6.0% (4.8)% Other real estate owned $ 213 Appraisal of collateral Appraisal adjustments 20.0% to 38.2% (27.5)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2016 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,193 Appraisal of collateral Appraisal adjustments 18.0% to 97.0% (74.5)% Liquidation expenses 3.0% to 6.0% (5.3)% Other real estate owned $ 371 Appraisal of collateral Appraisal adjustments 25.0% to 54.6% (43.1)% Liquidation expenses 3.0% to 6.0% (5.0)%
Schedule of carrying and fair values of financial instruments	Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs June 30, 2017 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 41,401 $ 41,401 $ 41,401 Investment securities: Available-for-sale 256,774 256,774 20,080 $ 236,694 Held-to-maturity 9,868 10,221 10,221 Loans held for sale — Net loans 1,579,560 1,567,146 $ 1,567,146 Accrued interest receivable 6,206 6,206 6,206 Mortgage servicing rights 707 1,607 1,607 Restricted equity securities 7,754 7,754 7,754 Total $ 1,902,270 $ 1,891,109 Financial liabilities: Deposits $ 1,639,433 $ 1,638,514 $ 1,638,514 Short-term borrowings 91,500 91,500 91,500 Long-term debt 57,160 58,053 58,053 Accrued interest payable 431 431 431 Total $ 1,788,524 $ 1,788,498 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2016 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 39,941 $ 39,941 $ 39,941 Investment securities: Available-for-sale 259,410 259,410 $ 7,438 $ 251,972 Held-to-maturity 10,517 10,714 10,714 Loans held for sale Net loans 1,517,004 1,507,936 $ 1,507,936 Accrued interest receivable 6,228 6,228 6,228 Mortgage servicing rights 698 1,587 1,587 Restricted equity securities 7,051 7,051 7,051 Total $ 1,840,849 $ 1,832,867 Financial liabilities: Deposits $ 1,588,757 $ 1,587,701 $ 1,587,701 Short-term borrowings 82,700 82,700 82,700 Long-term debt 58,134 58,987 58,987 Accrued interest payable 462 462 462 Total $ 1,730,053 $ 1,729,850

Employee benefit plans (Tables)

Employee benefit plans (Tables)	6 Months Ended
	Jun. 30, 2017
Employee benefit plans
Schedule of components of net periodic benefit cost	Pension Benefits Three Months Ended June 30, 2017 2016 Components of net periodic pension cost: Interest cost $ 217 $ 166 Expected return on plan assets (305) (223) Amortization of unrecognized net gain 65 52 Net periodic other benefit cost $ (23) $ (5) Pension Benefits Six Months Ended June 30, 2017 2016 Components of net periodic pension cost: Interest cost $ 217 $ 333 Expected return on plan assets (305) (447) Amortization of unrecognized net gain 65 104 Net periodic other benefit cost $ (23) $ (10)

Summary of significant accoun24

Summary of significant accounting policies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2017Office
Summary of significant accounting policies
Number of full-service community banking offices	26

Other comprehensive loss - Comp

Other comprehensive loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Other comprehensive loss
Net unrealized gain on investment securities available-for-sale	$ 2,010	$ 553
Income tax	703	193
Net of income taxes	1,307	360
Benefit plan adjustments	(6,946)	(6,946)
Income tax expense (benefit)	2,431	2,431
Net of income taxes	(4,515)	(4,515)
Accumulated other comprehensive loss	$ (3,208)	$ (4,155)

Other comprehensive loss - Othe

Other comprehensive loss - Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Other comprehensive loss
Unrealized gain (loss) on investment securities available-for-sale	$ 1,184	$ 1,128	$ 1,457	$ 2,123
Net gain on the sale of investment securities available-for-sale(1)		(381)		(623)
Other comprehensive income gain (loss) before taxes	1,184	747	1,457	1,500
Income tax	415	261	510	525
Other comprehensive income, net of income taxes	$ 769	$ 486	$ 947	$ 975

Earnings per share - Shares Con

Earnings per share - Shares Considered Anti-dilutive (Details) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Earnings per share
Anti-dilutive shares	0	0

Earnings per share - Schedule o

Earnings per share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings per share
Net Income, Basic	$ 5,659	$ 4,855	$ 10,459	$ 9,737
Average common shares outstanding, Basic	7,396,163	7,395,127	7,395,158	7,399,318
Earnings per share, Basic	$ 0.76	$ 0.66	$ 1.41	$ 1.32
Net Income, Diluted	$ 5,659	$ 4,855	$ 10,459	$ 9,737
Average common shares outstanding, Diluted	7,396,163	7,395,127	7,395,158	7,399,318
Earnings per share, Diluted	$ 0.76	$ 0.66	$ 1.41	$ 1.32

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	$ 254,764	$ 258,857
Available-for-sale, Gross Unrealized Gains	3,080	3,050
Available-for-sale, Gross Unrealized Losses	1,070	2,497
Available-for-sale, Fair Value	256,774	259,410
Held-to-maturity, Amortized Cost	9,868	10,517
Held-to-maturity, Gross Unrealized Gains	356	264
Held-to-maturity, Gross Unrealized Losses	3	67
Held-to-maturity, Fair value	10,221	10,714
Mortgage-backed Securities, U.S. Government agencies
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	17,576	21,041
Available-for-sale, Gross Unrealized Gains	31	48
Available-for-sale, Gross Unrealized Losses	29	47
Available-for-sale, Fair Value	17,578	21,042
Held-to-maturity, Amortized Cost	61	68
Held-to-maturity, Gross Unrealized Gains		1
Held-to-maturity, Fair value	61	69
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	18,280	22,303
Available-for-sale, Gross Unrealized Gains	39	48
Available-for-sale, Gross Unrealized Losses	111	159
Available-for-sale, Fair Value	18,208	22,192
Held-to-maturity, Amortized Cost	2,947	3,587
Held-to-maturity, Gross Unrealized Gains	193	191
Held-to-maturity, Fair value	3,140	3,778
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	81,495	82,314
Available-for-sale, Gross Unrealized Gains	96	79
Available-for-sale, Gross Unrealized Losses	847	1,480
Available-for-sale, Fair Value	80,744	80,913
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	20,047	7,570
Available-for-sale, Gross Unrealized Gains	56
Available-for-sale, Gross Unrealized Losses	23	132
Available-for-sale, Fair Value	20,080	7,438
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	14,629	14,698
Available-for-sale, Gross Unrealized Gains	667	566
Available-for-sale, Gross Unrealized Losses	1	39
Available-for-sale, Fair Value	15,295	15,225
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	102,737	110,931
Available-for-sale, Gross Unrealized Gains	2,191	2,309
Available-for-sale, Gross Unrealized Losses	59	640
Available-for-sale, Fair Value	104,869	112,600
Held-to-maturity, Amortized Cost	6,860	6,862
Held-to-maturity, Gross Unrealized Gains	163	72
Held-to-maturity, Gross Unrealized Losses	3	67
Held-to-maturity, Fair value	$ 7,020	$ 6,867

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investment securities
Within one year	$ 33,157
After one but within five years	127,433
After five but within ten years	45,799
After ten years	14,599
Available for sale securities	220,988
Mortgage-backed securities	35,786
Total	$ 256,774	$ 259,410

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After ten years, Held to maturity	$ 6,860
Amortized Cost, Held to maturity	6,860
Amortized Cost, Mortgage-backed securities, Held to maturity	3,008
Held-to-maturity, Amortized Cost	9,868	$ 10,517
Fair Value of Held-to-maturity Securities
Fair Value, After ten years, Held to maturity	7,020
Fair Value, Held to maturity	7,020
Fair Value, Mortgage-backed securities, Held to maturity	3,201
Held to maturity, Fair Value	$ 10,221	$ 10,714

Investment securities - Additio

Investment securities - Additional Information (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017USD ($)security	Dec. 31, 2016USD ($)security
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged | $	$ 138,272	$ 144,750
Number of investment securities held	80	163
US Government Agency and Sponsored Enterprises
Available-for-sale and Held-to-maturity securities
Number of investment securities held	25
Number of securities in continuous unrealized loss positions 12 months or longer	1
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Number of investment securities held	27	107
Number of securities in continuous unrealized loss positions 12 months or longer		2
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Number of investment securities held	1	2
Credit Concentration Risk | Total Stockholders' Equity | US Government Agency and Sponsored Enterprises | Minimum
Available-for-sale and Held-to-maturity securities
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer	10.00%	10.00%
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Number of investment securities held		22
Number of securities in continuous unrealized loss positions 12 months or longer		9
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Number of investment securities held	26	30
Number of securities in continuous unrealized loss positions 12 months or longer	11
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Number of investment securities held	1	2

Investment securities - Fair Va

Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	$ 98,864	$ 145,428
Less Than 12 Months, Unrealized Losses	967	2,470
12 Months or More, Fair Value	6,897	4,434
12 Months or More, Unrealized Losses	106	94
Total, Fair Value	105,761	149,862
Total, Unrealized Losses	1,073	2,564
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	554	1,035
Less Than 12 Months, Unrealized Losses	1	39
Total, Fair Value	554	1,035
Total, Unrealized Losses	1	39
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	15,898	55,166
Less Than 12 Months, Unrealized Losses	62	707
12 Months or More, Fair Value		226
Total, Fair Value	15,898	55,392
Total, Unrealized Losses	62	707
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	2,501	7,438
Less Than 12 Months, Unrealized Losses	23	132
Total, Fair Value	2,501	7,438
Total, Unrealized Losses	23	132
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	65,845	59,460
Less Than 12 Months, Unrealized Losses	823	1,480
12 Months or More, Fair Value	1,067
12 Months or More, Unrealized Losses	24
Total, Fair Value	66,912	59,460
Total, Unrealized Losses	847	1,480
Mortgage-backed Securities, U.S. Government agencies
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	2,848	5,917
Less Than 12 Months, Unrealized Losses	8	27
12 Months or More, Fair Value	3,503	1,496
12 Months or More, Unrealized Losses	21	20
Total, Fair Value	6,351	7,413
Total, Unrealized Losses	29	47
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	11,218	16,412
Less Than 12 Months, Unrealized Losses	50	85
12 Months or More, Fair Value	2,327	2,712
12 Months or More, Unrealized Losses	61	74
Total, Fair Value	13,545	19,124
Total, Unrealized Losses	$ 111	$ 159

Loans, net and allowance for 34

Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Loans, net and allowance for loan losses
Net deferred loan costs	$ 542	$ 579

Loans, net and allowance for 35

Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,597,362	$ 1,532,965
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	452,180	408,814
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	719,652	700,144
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	286,232	289,781
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 139,298	$ 134,226

Loans, net and allowance for 36

Loans, net and allowance for loan losses - Changes in Allowance for Loan Losses Account by Major Classification of Loans (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Allowance for loan losses:
Beginning Balance	$ 16,969	$ 14,158	$ 12,975	$ 15,961	$ 12,975
Charge-offs	(431)		(632)	(742)	(755)
Recoveries	64		73	183	179
Provisions	1,200	1,200	1,200	2,400	2,400
Ending balance	17,802	14,799	14,158	17,802	14,799
Beginning Balance	16,969	14,158	12,975	15,961	12,975
Ending balance: individually evaluated for impairment						$ 1,335	$ 1,942
Charge-offs	(431)		(632)	(742)	(755)
Ending balance: collectively evaluated for impairment						16,467	14,019
Recoveries	64		73	183	179
Ending balance: loans acquired with deteriorated credit quality	16,969	14,158	12,975	15,961	12,975	17,802	15,961
Provisions	1,200	1,200	1,200	2,400	2,400
Loans receivable:
Total Loans						1,597,362	1,532,965
Ending balance: individually evaluated for impairment						9,412	11,242
Ending balance: collectively evaluated for impairment						1,586,905	1,519,386
Total Loans						1,597,362	1,532,965
Ending balance	17,802	14,799	14,158	17,802	14,799
Ending balance: individually evaluated for impairment						9,412	11,242
Ending balance: collectively evaluated for impairment						1,586,905	1,519,386
Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance						1,045	2,337
Ending balance						1,045	2,337
Commercial
Allowance for loan losses:
Beginning Balance	4,129	3,322	3,042	3,799	3,042
Charge-offs	(32)		(393)	(32)	(396)
Recoveries	6		34	13	36
Provisions	323		300	646	581
Ending balance	4,426	3,263	3,322	4,426	3,263
Beginning Balance	4,129	3,322	3,042	3,799	3,042
Ending balance: individually evaluated for impairment						322	225
Charge-offs	(32)		(393)	(32)	(396)
Ending balance: collectively evaluated for impairment						4,104	3,574
Recoveries	6		34	13	36
Ending balance: loans acquired with deteriorated credit quality	4,129	3,322	3,042	3,799	3,042	4,426	3,799
Provisions	323		300	646	581
Loans receivable:
Total Loans						452,180	408,814
Ending balance: individually evaluated for impairment						1,944	1,724
Ending balance: collectively evaluated for impairment						449,868	406,127
Total Loans						452,180	408,814
Ending balance	4,426	3,263	3,322	4,426	3,263
Ending balance: individually evaluated for impairment						1,944	1,724
Ending balance: collectively evaluated for impairment						449,868	406,127
Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance						368	963
Ending balance						368	963
Real estate Commercial
Allowance for loan losses:
Beginning Balance	6,291	4,616	4,245	5,847	4,245
Charge-offs	(242)		(48)	(367)	(103)
Recoveries	22		14	55	30
Provisions	516		495	1,052	905
Ending balance	6,587	5,077	4,616	6,587	5,077
Beginning Balance	6,291	4,616	4,245	5,847	4,245
Ending balance: individually evaluated for impairment						509	1,197
Charge-offs	(242)		(48)	(367)	(103)
Ending balance: collectively evaluated for impairment						6,078	4,650
Recoveries	22		14	55	30
Ending balance: loans acquired with deteriorated credit quality	6,291	4,616	4,245	5,847	4,245	6,587	5,847
Provisions	516		495	1,052	905
Loans receivable:
Total Loans						719,652	700,144
Ending balance: individually evaluated for impairment						3,951	5,820
Ending balance: collectively evaluated for impairment						715,056	692,987
Total Loans						719,652	700,144
Ending balance	6,587	5,077	4,616	6,587	5,077
Ending balance: individually evaluated for impairment						3,951	5,820
Ending balance: collectively evaluated for impairment						715,056	692,987
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance						645	1,337
Ending balance						645	1,337
Real estate Residential
Allowance for loan losses:
Beginning Balance	4,978	4,359	4,082	4,707	4,082
Charge-offs	(8)		(126)	(23)	(126)
Recoveries	4		10	26	35
Provisions	222		222	486	474
Ending balance	5,196	4,465	4,359	5,196	4,465
Beginning Balance	4,978	4,359	4,082	4,707	4,082
Ending balance: individually evaluated for impairment						461	520
Charge-offs	(8)		(126)	(23)	(126)
Ending balance: collectively evaluated for impairment						4,735	4,187
Recoveries	4		10	26	35
Ending balance: loans acquired with deteriorated credit quality	4,978	4,359	4,082	4,707	4,082	5,196	4,707
Provisions	222		222	486	474
Loans receivable:
Total Loans						286,232	289,781
Ending balance: individually evaluated for impairment						3,285	3,543
Ending balance: collectively evaluated for impairment						282,915	286,201
Total Loans						286,232	289,781
Ending balance	5,196	4,465	4,359	5,196	4,465
Ending balance: individually evaluated for impairment						3,285	3,543
Ending balance: collectively evaluated for impairment						282,915	286,201
Real estate Residential | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance						32	37
Ending balance						32	37
Consumer
Allowance for loan losses:
Beginning Balance	1,571	1,646	1,583	1,608	1,583
Charge-offs	(149)		(65)	(320)	(130)
Recoveries	32		15	89	78
Provisions	139		83	216	148
Ending balance	1,593	1,679	1,646	1,593	1,679
Beginning Balance	1,571	1,646	1,583	1,608	1,583
Ending balance: individually evaluated for impairment						43
Charge-offs	(149)		(65)	(320)	(130)
Ending balance: collectively evaluated for impairment						1,550	1,608
Recoveries	32		15	89	78
Ending balance: loans acquired with deteriorated credit quality	1,571	1,646	1,583	1,608	1,583	1,593	1,608
Provisions	139		83	216	148
Loans receivable:
Total Loans						139,298	134,226
Ending balance: individually evaluated for impairment						232	155
Ending balance: collectively evaluated for impairment						139,066	134,071
Total Loans						139,298	134,226
Ending balance	$ 1,593	1,679	1,646	$ 1,593	1,679
Ending balance: individually evaluated for impairment						232	155
Ending balance: collectively evaluated for impairment						$ 139,066	$ 134,071
Unallocated
Allowance for loan losses:
Beginning Balance		215	23		23
Provisions			100		292
Ending balance		315	215		315
Beginning Balance		215	23		23
Ending balance: loans acquired with deteriorated credit quality		215	23		23
Provisions			100		292
Loans receivable:
Ending balance		$ 315	$ 215		$ 315

Loans, net and allowance for 37

Loans, net and allowance for loan losses - Allocation of Allowance for Loan Losses and Related Loans by Major Classification of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Allowance for loan losses:
Ending balance	$ 17,802	$ 16,969	$ 15,961	$ 14,799	$ 14,158	$ 12,975
Ending balance: individually evaluated for impairment	1,335		1,942
Ending balance: collectively evaluated for impairment	16,467		14,019
Loans receivable:
Ending balance	1,597,362		1,532,965
Ending balance: individually evaluated for impairment	9,412		11,242
Ending balance: collectively evaluated for impairment	1,586,905		1,519,386
Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	1,045		2,337
Commercial
Allowance for loan losses:
Ending balance	4,426	4,129	3,799	3,263	3,322	3,042
Ending balance: individually evaluated for impairment	322		225
Ending balance: collectively evaluated for impairment	4,104		3,574
Loans receivable:
Ending balance	452,180		408,814
Ending balance: individually evaluated for impairment	1,944		1,724
Ending balance: collectively evaluated for impairment	449,868		406,127
Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	368		963
Real estate Commercial
Allowance for loan losses:
Ending balance	6,587	6,291	5,847	5,077	4,616	4,245
Ending balance: individually evaluated for impairment	509		1,197
Ending balance: collectively evaluated for impairment	6,078		4,650
Loans receivable:
Ending balance	719,652		700,144
Ending balance: individually evaluated for impairment	3,951		5,820
Ending balance: collectively evaluated for impairment	715,056		692,987
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	645		1,337
Real estate Residential
Loans receivable:
Ending balance	286,232		289,781
Consumer
Allowance for loan losses:
Ending balance	1,593	$ 1,571	1,608	1,679	1,646	1,583
Ending balance: individually evaluated for impairment	43
Ending balance: collectively evaluated for impairment	1,550		1,608
Loans receivable:
Ending balance	139,298		134,226
Ending balance: individually evaluated for impairment	232		155
Ending balance: collectively evaluated for impairment	$ 139,066		$ 134,071
Unallocated
Allowance for loan losses:
Ending balance				$ 315	$ 215	$ 23

Loans, net and allowance for 38

Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,597,362	$ 1,532,965
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	452,180	408,814
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	719,652	700,144
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	286,232	289,781
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	139,298	134,226
Pass
Accounts, Notes, Loans and Financing Receivable
Loans, net	1,562,057	1,490,501
Pass | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	444,700	398,867
Pass | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	698,625	674,914
Pass | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	279,578	282,737
Pass | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	139,154	133,983
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans, net	11,709	16,847
Special Mention | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	2,976	6,222
Special Mention | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	8,590	10,392
Special Mention | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	143	233
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans, net	23,596	25,617
Substandard | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	4,504	3,725
Substandard | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	12,437	14,838
Substandard | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	6,511	6,811
Substandard | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 144	$ 243

Loans, net and allowance for 39

Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 8,277	$ 11,108
Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	1,285	934
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	4,115	7,016
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	2,645	3,003
Consumer
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 232	$ 155

Loans, net and allowance for 40

Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 14,540	$ 21,260
Current	1,582,822	1,511,705
Total Loans	1,597,362	1,532,965
Loans > 90 Days and Accruing	835	844
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,432	8,093
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	996	1,215
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	9,112	11,952
Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,891	1,258
Current	450,289	407,556
Total Loans	452,180	408,814
Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	501	249
Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	105	75
Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,285	934
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	6,189	12,325
Current	713,463	687,819
Total Loans	719,652	700,144
Real estate Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,003	4,782
Real estate Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	71	527
Real estate Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,115	7,016
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,650	6,015
Current	281,582	283,766
Total Loans	286,232	289,781
Loans > 90 Days and Accruing	567	558
Real estate Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	964	2,100
Real estate Residential | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	474	354
Real estate Residential | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,212	3,561
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,810	1,662
Current	137,488	132,564
Total Loans	139,298	134,226
Loans > 90 Days and Accruing	268	286
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	964	962
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	346	259
Consumer | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 500	$ 441

Loans, net and allowance for 41

Loans, net and allowance for loan losses - Summarize Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 6,909	$ 8,911	$ 6,909	$ 8,911	$ 7,128
Unpaid Principal Balance, With no related allowance, Total	8,356	10,840	8,356	10,840	8,774
Average Recorded Investment, With no related allowance, Total	6,962	7,777	7,016	7,339	8,041
Interest Income Recognized, With no related allowance, Total	29	47	54	102	154
Recorded Investment, With an allowance recorded, Total	3,548	2,864	3,548	2,864	6,451
Unpaid Principal Balance, With an allowance recorded, Total	3,548	2,864	3,548	2,864	6,452
Related Allowance, With an allowance recorded, Total	1,335	1,814	1,335	1,814	1,942
Average Recorded Investment, With an allowance recorded, Total	4,006	4,058	4,820	4,710	4,460
Interest Income Recognized, With an allowance recorded, Total	11	2	21	4	9
Recorded Investment, Total	10,457	11,775	10,457	11,775	13,579
Unpaid Principal Balance, Total	11,904	13,704	11,904	13,704	15,226
Related Allowance, With an allowance recorded, Total	1,335	1,814	1,335	1,814	1,942
Average Recorded Investment, Total	10,968	11,835	11,836	12,049	12,501
Interest Income Recognized, Total	40	49	75	106	163
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	1,580	1,296	1,580	1,296	2,404
Unpaid Principal Balance, With no related allowance, Total	2,197	2,378	2,197	2,378	3,213
Average Recorded Investment, With no related allowance, Total	1,173	1,235	1,583	1,249	1,461
Interest Income Recognized, With no related allowance, Total	18	14	35	30	48
Recorded Investment, With an allowance recorded, Total	732	615	732	615	283
Unpaid Principal Balance, With an allowance recorded, Total	732	615	732	615	283
Related Allowance, With an allowance recorded, Total	321	615	321	615	225
Average Recorded Investment, With an allowance recorded, Total	1,328	878	979	923	859
Recorded Investment, Total	2,312	1,911	2,312	1,911	2,687
Unpaid Principal Balance, Total	2,929	2,993	2,929	2,993	3,496
Related Allowance, With an allowance recorded, Total	321	615	321	615	225
Average Recorded Investment, Total	2,501	2,113	2,562	2,172	2,320
Interest Income Recognized, Total	18	14	35	30	48
Real estate Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	3,058	5,517	3,058	5,517	2,364
Unpaid Principal Balance, With no related allowance, Total	3,706	6,181	3,706	6,181	3,018
Average Recorded Investment, With no related allowance, Total	3,387	4,340	3,045	3,643	4,300
Interest Income Recognized, With no related allowance, Total	7	30	13	61	71
Recorded Investment, With an allowance recorded, Total	1,538	899	1,538	899	4,793
Unpaid Principal Balance, With an allowance recorded, Total	1,538	899	1,538	899	4,793
Related Allowance, With an allowance recorded, Total	509	405	509	405	1,197
Average Recorded Investment, With an allowance recorded, Total	1,505	1,964	2,601	2,400	2,366
Interest Income Recognized, With an allowance recorded, Total	3		7		2
Recorded Investment, Total	4,596	6,416	4,596	6,416	7,157
Unpaid Principal Balance, Total	5,244	7,080	5,244	7,080	7,811
Related Allowance, With an allowance recorded, Total	509	405	509	405	1,197
Average Recorded Investment, Total	4,892	6,304	5,646	6,043	6,666
Interest Income Recognized, Total	10	30	20	61	73
Real estate Residential
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,083	1,941	2,083	1,941	2,205
Unpaid Principal Balance, With no related allowance, Total	2,265	2,124	2,265	2,124	2,388
Average Recorded Investment, With no related allowance, Total	2,216	2,079	2,212	2,355	2,133
Interest Income Recognized, With no related allowance, Total	4	3	6	11	35
Recorded Investment, With an allowance recorded, Total	1,234	1,279	1,234	1,279	1,375
Unpaid Principal Balance, With an allowance recorded, Total	1,234	1,279	1,234	1,279	1,376
Related Allowance, With an allowance recorded, Total	461	723	461	723	520
Average Recorded Investment, With an allowance recorded, Total	1,139	1,136	1,218	1,295	1,185
Interest Income Recognized, With an allowance recorded, Total	8	2	14	4	7
Recorded Investment, Total	3,317	3,220	3,317	3,220	3,580
Unpaid Principal Balance, Total	3,499	3,403	3,499	3,403	3,764
Related Allowance, With an allowance recorded, Total	461	723	461	723	520
Average Recorded Investment, Total	3,355	3,215	3,430	3,650	3,318
Interest Income Recognized, Total	12	5	20	15	42
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	188	157	188	157	155
Unpaid Principal Balance, With no related allowance, Total	188	157	188	157	155
Average Recorded Investment, With no related allowance, Total	186	123	176	92	147
Recorded Investment, With an allowance recorded, Total	44	71	44	71
Unpaid Principal Balance, With an allowance recorded, Total	44	71	44	71
Related Allowance, With an allowance recorded, Total	44	71	44	71
Average Recorded Investment, With an allowance recorded, Total	34	80	22	92	50
Recorded Investment, Total	232	228	232	228	155
Unpaid Principal Balance, Total	232	228	232	228	155
Related Allowance, With an allowance recorded, Total	44	71	44	71
Average Recorded Investment, Total	$ 220	$ 203	$ 198	$ 184	$ 197

Loans, net and allowance for 42

Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details)	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)loan	Jun. 30, 2017USD ($)loan	Jun. 30, 2016USD ($)loan	Dec. 31, 2016USD ($)
Pre-Modification Outstanding Recorded Investment		$ 2,152,000	$ 2,701,000	$ 1,909,000
Loans modified as troubled debt restructuring	$ 64,000	$ 409,000	$ 75,000
Number of loans modified as troubled debt restructuring | loan	1	2	1
Real estate Residential
Number of defaults on loans restructured			$ 2
Loans modified as troubled debt restructuring			$ 208,000

Other assets and gain on sale43

Other assets and gain on sale of merchant services business - Components of Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other assets and gain on sale of merchant services business.
Other real estate owned	$ 384	$ 393
Investment in residential housing program	8,077	8,312
Mortgage servicing rights	707	698
Bank owned life insurance	33,454	33,073
Restricted equity securities	7,754	7,051
Other assets	17,626	15,974
Total	$ 68,002	$ 65,501

Other assets and gain on sale44

Other assets and gain on sale of merchant services business - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Proceeds from the sale of merchant services business		$ 2,300
Net gain on sale of business	$ 2,278	2,278
Property, Plant and Equipment, Net	35,892	35,892	$ 33,260
Other assets
Property, Plant and Equipment, Net	$ 22	$ 22

Fair value of financial instrum

Fair value of financial instruments - Commitments Subject to Undue Credit Risk (Details) $ in Thousands	Jun. 30, 2017USD ($)
Fair value estimates
Commitments subject to undue credit risk	$ 0

Fair value estimates - Schedule

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	$ 256,774	$ 259,410
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	20,080	7,438
U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	80,744	80,913
State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	15,295	15,225
State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	104,869	112,600
Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	17,578	21,042
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	18,208	22,192
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	20,080	7,438
Level 1 | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	20,080	7,438
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	236,694	251,972
Level 2 | U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	80,744	80,913
Level 2 | State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	15,295	15,225
Level 2 | State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	104,869	112,600
Level 2 | Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	17,578	21,042
Level 2 | Mortgage-backed Securities, U.S. Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	$ 18,208	$ 22,192

Fair value estimates - Schedu47

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 1,798	$ 3,193
Other real estate owned	213	371
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	1,798	3,193
Other real estate owned	$ 213	$ 371

Fair value estimates - Addition

Fair value estimates - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Level 3 - Nonrecurring Basis - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other real estate owned
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 213	$ 371
Range and weighted average of appraisal adjustments	27.50%	43.10%
Range and weighted average of liquidation expenses	5.00%	5.00%
Other real estate owned | Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	20.00%	25.00%
Range and weighted average of liquidation expenses	3.00%	3.00%
Other real estate owned | Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	38.20%	54.60%
Range and weighted average of liquidation expenses	6.00%	6.00%
Impaired loans
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 1,798	$ 3,193
Range and weighted average of appraisal adjustments	75.30%	74.50%
Range and weighted average of liquidation expenses	4.80%	5.30%
Impaired loans | Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	6.30%	18.00%
Range and weighted average of liquidation expenses	3.00%	3.00%
Impaired loans | Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	97.00%	97.00%
Range and weighted average of liquidation expenses	6.00%	6.00%

Fair value estimates - Carrying

Fair value estimates - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investment securities:
Available-for-sale	$ 256,774	$ 259,410
Held-to-maturity	10,221	10,714
Mortgage servicing rights	707	698
Carrying Value
Financial assets:
Cash and cash equivalents	41,401	39,941
Investment securities:
Available-for-sale	256,774	259,410
Held-to-maturity	9,868	10,517
Net loans	1,579,560	1,517,004
Accrued interest receivable	6,206	6,228
Mortgage servicing rights	707	698
Restricted equity securities	7,754	7,051
Total assets	1,902,270	1,840,849
Financial liabilities:
Deposits	1,639,433	1,588,757
Short-term borrowings	91,500	82,700
Long-term debt	57,160	58,134
Accrued interest payable	431	462
Total liabilities	1,788,524	1,730,053
Fair Value
Financial assets:
Cash and cash equivalents	41,401	39,941
Investment securities:
Available-for-sale	256,774	259,410
Held-to-maturity	10,221	10,714
Net loans	1,567,146	1,507,936
Accrued interest receivable	6,206	6,228
Mortgage servicing rights	1,607	1,587
Restricted equity securities	7,754	7,051
Total assets	1,891,109	1,832,867
Financial liabilities:
Deposits	1,638,514	1,587,701
Short-term borrowings	91,500	82,700
Long-term debt	58,053	58,987
Accrued interest payable	431	462
Total liabilities	1,788,498	1,729,850
Level 1
Financial assets:
Cash and cash equivalents	41,401	39,941
Investment securities:
Available-for-sale	20,080	7,438
Level 2
Investment securities:
Available-for-sale	236,694	251,972
Held-to-maturity	10,221	10,714
Accrued interest receivable	6,206	6,228
Mortgage servicing rights	1,607	1,587
Restricted equity securities	7,754	7,051
Financial liabilities:
Deposits	1,638,514	1,587,701
Short-term borrowings	91,500	82,700
Long-term debt	58,053	58,987
Accrued interest payable	431	462
Level 3
Investment securities:
Net loans	$ 1,567,146	$ 1,507,936

Employee benefit plans - Net Pe

Employee benefit plans - Net Periodic Pension Cost (Details) - Pension Benefits - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Defined Benefit Plan Disclosure
Interest cost	$ 217	$ 166	$ 217	$ 333
Expected return on plan assets	(305)	(223)	(305)	(447)
Amortization of unrecognized net gain	65	52	65	104
Net periodic pension cost	$ (23)	$ (5)	$ (23)	$ (10)

Employee benefit plans - Additi

Employee benefit plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 307	$ 329	$ 603	$ 603
Shares or units awarded			2,020
Unrecognized compensation expense	81		$ 81
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 40		$ 40
Common stock available for grant as awards	120,116		120,116
Unrecognized compensation expense	$ 325		$ 325
Weighted average vesting period			2 years 9 months
Non-Performance-based restricted stock | 2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units awarded			2,020
Shares or units vesting period			3 years
Performance-based restricted stock units | 2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units awarded			7,071
Shares or units vesting period			3 years
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units			3 years
Average return on equity period used for conditions for vesting of performance-based restricted stock units			3 years
Restricted Stock | 2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of nonvested restricted stock awards	14,382		14,382
Shares or units vesting period			5 years