Peoples Financial Services (PFIS) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 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	Sep. 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		7,396,505
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Cash and due from banks:
Cash and due from banks	$ 31,839	$ 39,496
Interest-bearing deposits in other banks	1,067	445
Total cash and due from banks	32,906	39,941
Investment securities:
Available-for-sale	259,138	259,410
Held-to-maturity: Fair value September 30, 2017, $9,912; December 31, 2016, $10,71	9,564	10,517
Total investment securities	268,702	269,927
Loans, net	1,632,515	1,532,965
Less: allowance for loan losses	18,831	15,961
Net loans	1,613,684	1,517,004
Loans held for sale	460
Premises and equipment, net	37,373	33,260
Accrued interest receivable	5,908	6,228
Goodwill	63,370	63,370
Intangible assets, net	3,427	4,211
Other assets	66,406	65,501
Total assets	2,092,236	1,999,442
Deposits:
Noninterest-bearing	372,146	353,686
Interest-bearing	1,315,709	1,235,071
Total deposits	1,687,855	1,588,757
Short-term borrowings	71,900	82,700
Long-term debt	50,199	58,134
Accrued interest payable	481	462
Other liabilities	15,505	12,771
Total liabilities	1,825,940	1,742,824
Stockholders' equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,396,505 shares at September 30, 2017 and 7,394,143 shares at December 31, 2016	14,793	14,788
Capital surplus	134,988	134,871
Retained earnings	119,971	111,114
Accumulated other comprehensive loss	(3,456)	(4,155)
Total stockholders' equity	266,296	256,618
Total liabilities and stockholders' equity	$ 2,092,236	$ 1,999,442

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position
Held-to-maturity, Fair value	$ 9,912	$ 10,714
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,396,505	7,394,143
Common stock, shares outstanding	7,396,505	7,394,143

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest and fees on loans:
Taxable	$ 16,535	$ 15,294	$ 48,021	$ 44,400
Tax-exempt	813	770	2,334	2,301
Interest and dividends on investment securities:
Taxable	714	575	2,130	1,879
Tax-exempt	716	861	2,262	2,611
Dividends	13	10	37	31
Interest on interest-bearing deposits in other banks	40	15	107	47
Total interest income	18,831	17,525	54,891	51,269
Interest expense:
Interest on deposits	1,654	1,356	4,617	3,961
Interest on short-term borrowings	177	116	599	282
Interest on long-term debt	344	353	1,041	1,067
Total interest expense	2,175	1,825	6,257	5,310
Net interest income	16,656	15,700	48,634	45,959
Provision for loan losses	1,200	1,200	3,600	3,600
Net interest income after provision for loan losses	15,456	14,500	45,034	42,359
Noninterest income:
Service charges, fees and commissions	2,156	1,542	5,410	4,513
Merchant services income	165	1,257	2,358	3,209
Commission and fees on fiduciary activities	540	539	1,542	1,495
Wealth management income	414	271	1,081	979
Mortgage banking income	193	217	576	616
Life insurance investment income	193	199	577	594
Net gain on sale of investment securities available-for-sale				623
Net gain on sale of merchant services business			2,278
Total noninterest income	3,661	4,025	13,822	12,029
Noninterest expense:
Salaries and employee benefits expense	6,550	5,466	19,851	16,702
Net occupancy and equipment expense	2,483	2,316	7,327	6,998
Merchant services expense	33	890	1,796	2,270
Amortization of intangible assets	259	297	785	899
Other expenses	3,155	3,048	9,079	8,879
Total noninterest expense	12,480	12,017	38,838	35,748
Income before income taxes	6,637	6,508	20,018	18,640
Income tax expense	1,287	1,390	4,209	3,785
Net income	5,350	5,118	15,809	14,855
Other comprehensive income:
Unrealized gain on investment securities available-for-sale	(381)	(1,120)	1,076	1,003
Reclassification adjustment for net gain on sales included in net income				(623)
Other comprehensive income	(381)	(1,120)	1,076	380
Income tax related to other comprehensive loss	(133)	(392)	377	133
Other comprehensive income, net of income taxes	(248)	(728)	699	247
Comprehensive income	$ 5,102	$ 4,390	$ 16,508	$ 15,102
Net income:
Basic	$ 0.72	$ 0.69	$ 2.14	$ 2.01
Diluted	$ 0.72	$ 0.69	$ 2.14	$ 2.01
Average common shares outstanding:
Basic	7,396,505	7,394,143	7,395,612	7,397,581
Diluted	7,396,505	7,394,143	7,395,612	7,397,581
Dividends declared	$ 0.32	$ 0.31	$ 0.94	$ 0.93

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		53			53
Net income			14,855		14,855
Other comprehensive income, net of income taxes				247	247
Dividends declared			(6,879)		(6,879)
Shares retired	(33)	(571)			(604)
Balance at Sep. 30, 2016	14,788	134,853	108,677	(1,878)	256,440
Balance at Dec. 31, 2016	14,788	134,871	111,114	(4,155)	256,618
Stock based compensation		122			122
Net income			15,809		15,809
Other comprehensive income, net of income taxes				699	699
Dividends declared			(6,952)		(6,952)
Common stock grants awarded, net of unearned compensation of $53: 2,362 shares	5	(5)
Balance at Sep. 30, 2017	$ 14,793	$ 134,988	$ 119,971	$ (3,456)	$ 266,296

Consolidated Statements of Cha6

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Stockholders' Equity
Dividends declared (in dollars per share)	$ 0.32	$ 0.31	$ 0.94	$ 0.93
Common stock grants awarded, shares			2,362
Unearned compensation	$ 53		$ 53
Share retired, shares				16,463

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 15,809	$ 14,855
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	1,401	1,208
Amortization of deferred loan costs	662	575
Amortization of intangibles	785	899
Amortization of loss on investment tax credits	352	358
Provision for loan losses	3,600	3,600
Net gain on sale of other real estate owned	(50)	(25)
Loans originated for sale	(16,927)	(17,432)
Proceeds from sale of loans originated for sale	16,622	17,688
Net gain on sale of loans originated for sale	(155)	(616)
Net amortization of investment securities	2,130	2,826
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	(577)	(594)
Stock based compensation	122	53
Net change in:
Accrued interest receivable	320	487
Other assets	(1,780)	(1,799)
Accrued interest payable	19	(126)
Other liabilities	2,665	(671)
Net cash provided by operating activities	22,720	20,663
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	44,489	42,277
Held-to-maturity	936	1,221
Purchases of investment securities:
Available-for-sale	(45,254)	(36,462)
Net redemption (purchase) of restricted equity securities	710	(1,508)
Net increase in lending activities	(101,320)	(183,482)
Investment in low income housing investment tax credits		(2,045)
Purchases of premises and equipment	(5,514)	(6,100)
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	487	702
Net cash used in investing activities	(103,166)	(159,489)
Cash flows from financing activities:
Net increase in deposits	99,098	110,000
Repayment of long-term debt	(7,935)	(1,669)
Net (decrease) increase in short-term borrowings	(10,800)	36,975
Retirement of common stock		(604)
Cash dividends paid	(6,952)	(6,879)
Net cash provided by financing activities	73,411	137,823
Net increase (decrease) in cash and cash equivalents	(7,035)	(1,003)
Cash and cash equivalents at beginning of period	39,941	32,917
Cash and cash equivalents at end of period	32,906	31,914
Cash paid during the period for:
Interest	6,238	5,436
Income taxes	4,100	3,900
Noncash items:
Transfers of loans to other real estate	$ 479	$ 761

Summary of significant accounti

Summary of significant accounting policies	9 Months Ended
	Sep. 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-seven 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 nine months ended and as of September 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. Derivative instruments and hedging activities The Financial Accounting Standards Board (“FASB”) ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Currently, none of the Company’s derivatives are designated in qualifying hedging relationships, as the derivatives are not used to manage risks within the Company’s assets or liabilities. As such, all changes in fair value of the Company’s derivatives are recognized directly in earnings. In accordance with the FASB’s fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. 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. However, the Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. Based on the Company’s analysis of the effect of the new standard on its recurring revenue streams, it does not expect these changes to have a significant impact on the Company’s financial statements. Upon adoption on January 1, 2018, no significant adjustment to opening retained earnings is expected. 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 but due to the nature of the Company’s investments it is not expected to have a significant impact, if any. 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. Further, any impact on the allowance upon adoption is currently unknown but any change in allowance levels will affect 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. In August 2017, the Financial Accounting Standards Board issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities”. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company plans to adopt ASU 2017-12 on January 1, 2019. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. While the Company continues to assess all potential impacts of the standard, we currently expect adoption to have an immaterial impact on our consolidated financial statements, as exposure to derivatives contracts is only offered under special circumstances. The Company will continue to assess the financial statement impact as adoption draws closer and/or exposure to derivatives contracts grows to a level deemed to be material.

Other comprehensive loss

Other comprehensive loss	9 Months Ended
	Sep. 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 September 30, 2017 and December 31, 2016 is as follows: September 30, 2017 December 31, 2016 Net unrealized gain on investment securities available-for-sale $ 1,629 $ 553 Income tax 570 193 Net of income taxes 1,059 360 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 $ (3,456) $ (4,155) Other comprehensive income (loss) and related tax effects for the three and nine months ended September 30, 2017 and 2016 is as follows: Three Months Ended September 30, 2017 2016 Unrealized loss on investment securities available-for-sale $ (381) $ (1,120) Net gain on the sale of investment securities available-for-sale(1) Other comprehensive loss before taxes (381) (1,120) Income tax benefit (133) (392) Other comprehensive loss before taxes $ (248) $ (728) Nine Months Ended September 30, 2017 2016 Unrealized gain on investment securities available-for-sale $ 1,076 $ 1,003 Net gain on the sale of investment securities available-for-sale(1) (623) Other comprehensive income gain before taxes 1,076 380 Income tax expense 377 133 Other comprehensive income $ 699 $ 247 (1)

Earnings per share

Earnings per share	9 Months Ended
	Sep. 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 nine month periods ended September 30, 2017 and 2016. 2017 2016 For the Three Months Ended September 30, Basic Diluted Basic Diluted Net Income $ 5,350 $ 5,350 $ 5,118 $ 5,118 Average common shares outstanding 7,396,505 7,396,505 7,394,143 7,394,143 Earnings per share $ 0.72 $ 0.72 $ 0.69 $ 0.69 2017 2016 For the Nine Months Ended September 30 Basic Diluted Basic Diluted Net Income $ 15,809 $ 15,809 $ 14,855 $ 14,855 Average common shares outstanding 7,395,612 7,395,612 7,397,581 7,397,581 Earnings per share $ 2.14 $ 2.14 $ 2.01 $ 2.01

Investment securities

Investment securities	9 Months Ended
	Sep. 30, 2017
Investment securities
Investment securities	4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at September 30, 2017 and December 31, 2016 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2017 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 20,045 $ 29 $ 28 $ 20,046 U.S. Government-sponsored enterprises 85,482 83 915 84,650 State and municipals: Taxable 14,594 615 2 15,207 Tax-exempt 98,494 2,062 51 100,505 Residential Mortgage-backed securities: U.S. Government agencies 16,045 21 33 16,033 U.S. Government-sponsored enterprises 16,492 29 95 16,426 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,326 85 6,241 Common equity securities 30 30 Total $ 257,508 $ 2,839 $ 1,209 $ 259,138 Held-to-maturity: Tax-exempt state and municipals $ 6,859 $ 185 $ 2 $ 7,042 Residential Mortgage-backed securities: U.S. Government agencies 58 58 U.S. Government-sponsored enterprises 2,647 165 2,812 Total $ 9,564 $ 350 $ 2 $ 9,912 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 Residential 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 Residential 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 September 30, 2017, is summarized as follows: Fair September 30, 2017 Value Within one year $ 15,858 After one but within five years 148,810 After five but within ten years 40,582 After ten years 15,158 220,408 Mortgage-backed securities 38,700 Total $ 259,108 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at September 30, 2017, is summarized as follows: Amortized Fair September 30, 2017 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,859 $ 7,042 6,859 7,042 Mortgage-backed securities 2,705 2,870 Total $ 9,564 $ 9,912 Securities with a carrying value of $165,205 and $144,750 at September 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 September 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 September 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 September 30, 2017 Value Losses Value Losses Value Losses U.S. Treasury securities $ 5,494 $ 28 $ 5,494 $ 28 U.S. Government-sponsored enterprises 48,573 376 $ 29,309 $ 539 77,882 915 State and municipals: Taxable 551 2 551 2 Tax-exempt 5,330 50 2,482 3 7,812 53 Residential Mortgage-backed securities: U.S. Government agencies 5,671 13 3,175 20 8,846 33 U.S. Government-sponsored enterprises 8,492 25 4,775 70 13,267 95 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,241 85 6,241 85 Total $ 80,352 $ 579 $ 39,741 $ 632 $ 120,093 $ 1,211 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 Residential 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 74 investment securities, consisting of 11 tax-exempt state and municipal obligations, 2 U.S. Treasury securities, one taxable municipal obligation, 29 U.S. Government-sponsored enterprise securities, and 31 mortgage-backed securities that were in unrealized loss positions at September 30, 2017. Of these securities, 4 tax-exempt state and municipal obligations, 14 mortgage-backed securities and 10 U.S. Government-sponsored enterprise securities 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 September 30, 2017. There was no OTTI recognized for the three or nine months ended September 30, 2017 and 2016. The Company had 163 investment securities, consisting of 107 tax-exempt state and municipal obligations, 2 taxable state and municipal obligations, 2 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, 9 mortgage-backed securities, and 2 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	9 Months Ended
	Sep. 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 September 30, 2017 and December 31, 2016 are summarized as follows. Net deferred loan costs were $646 and $579 at September 30, 2017 and December 31, 2016. September 30, 2017 December 31, 2016 Commercial $ 449,464 $ 408,814 Real estate: Commercial 751,510 700,144 Residential 289,582 289,781 Consumer 141,959 134,226 Total $ 1,632,515 $ 1,532,965 The changes in the allowance for loan losses account by major classification of loan for the three and nine months ended September 30, 2017 and 2016 are summarized as follows: Real estate September 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance July 1, 2017 $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ $ 17,802 Charge-offs (17) (82) (169) (268) Recoveries 3 41 4 49 97 Provisions 358 566 175 101 1,200 Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ $ 18,831 Real estate September 30, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance July 1, 2016 $ 3,263 $ 5,077 $ 4,465 $ 1,679 $ 315 $ 14,799 Charge-offs (72) (153) (130) (355) Recoveries 2 28 4 34 68 Provisions 321 548 245 86 1,200 Ending balance $ 3,586 $ 5,581 $ 4,561 $ 1,669 $ 315 $ 15,712 Real estate September 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 (49) (367) (105) (489) (1,010) Recoveries 16 96 30 138 280 Provisions 1,004 1,618 661 317 3,600 Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ $ 18,831 Real estate September 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) (175) (279) (260) (1,110) Recoveries 38 58 39 112 247 Provisions 902 1,453 719 234 292 3,600 Ending balance $ 3,586 $ 5,581 $ 4,561 $ 1,669 $ 315 $ 15,712 The allocation of the allowance for loan losses and the related loans by major classifications of loans at September 30, 2017 and December 31, 2016 is summarized as follows: Real estate September 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ $ 18,831 Ending balance: individually evaluated for impairment 436 631 616 23 1,706 Ending balance: collectively evaluated for impairment 4,334 6,563 4,677 1,551 17,125 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 449,464 $ 751,510 $ 289,582 $ 141,959 $ $ 1,632,515 Ending balance: individually evaluated for impairment 2,789 4,062 3,697 194 10,742 Ending balance: collectively evaluated for impairment 446,322 746,802 285,854 141,765 1,620,743 Ending balance: loans acquired with deteriorated credit quality $ 353 $ 646 $ 31 $ $ $ 1,030 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 September 30, 2017 and December 31, 2016: Special September 30, 2017 Pass Mention Substandard Doubtful Total Commercial $ 441,503 $ 5,028 $ 2,933 $ $ 449,464 Real estate: Commercial 724,659 14,730 12,121 751,510 Residential 283,690 19 5,873 289,582 Consumer 141,618 341 141,959 Total $ 1,591,470 $ 19,777 $ 21,268 $ $ 1,632,515 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 September 30, 2017 and December 31, 2016 is summarized as follows: September 30, 2017 December 31, 2016 Commercial $ 1,263 $ 934 Real estate: Commercial 4,233 7,016 Residential 3,031 3,003 Consumer 194 155 Total $ 8,721 $ 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 September 30, 2017 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 260 $ 84 $ 1,263 $ 1,607 $ 447,857 $ 449,464 Real estate: Commercial 831 135 4,233 5,199 746,311 751,510 Residential 1,756 147 4,312 6,215 283,367 289,582 $ 1,281 Consumer 846 357 423 1,626 140,333 141,959 229 Total $ 3,693 $ 723 $ 10,231 $ 14,647 $ 1,617,868 $ 1,632,515 $ 1,510 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 nine months ended September 30, 2017 and September 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 September 30, 2017 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 2,310 $ 2,455 $ 1,945 $ 28 $ 1,765 $ 63 Real estate: Commercial 2,900 3,192 2,979 6 3,009 19 Residential 2,303 2,727 2,193 4 2,235 10 Consumer 171 183 180 175 Total 7,684 8,557 7,297 38 7,184 92 With an allowance recorded: Commercial 833 910 $ 436 783 943 Real estate: Commercial 1,807 2,073 631 1,673 6 2,402 13 Residential 1,425 1,663 616 1,330 8 1,270 22 Consumer 23 23 23 34 23 Total 4,088 4,669 1,706 3,820 14 4,638 35 Commercial 3,143 3,365 436 2,728 28 2,708 63 Real estate: Commercial 4,707 5,265 631 4,652 12 5,411 32 Residential 3,728 4,390 616 3,523 12 3,505 32 Consumer 194 206 23 214 198 Total $ 11,772 $ 13,226 $ 1,706 $ 11,117 $ 52 $ 11,822 $ 127 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 September 30, 2016 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 970 $ 1,876 $ 1,133 $ $ 1,214 Real estate: Commercial 6,156 6,812 5,837 4,396 Residential 2,171 2,354 2,056 2,263 Consumer 188 188 173 119 Total 9,485 11,230 9,199 22 7,992 124 With an allowance recorded: Commercial 1,396 1,396 $ 895 1,006 954 $ Real estate: Commercial 743 743 337 821 1,877 Residential 1,093 1,093 638 1,186 1,263 4 Consumer 41 41 41 56 80 Total 3,273 3,273 1,911 3,069 — 4,174 4 Commercial 2,366 3,272 895 2,139 10 2,168 40 Real estate: Commercial 6,899 7,555 337 6,658 9 6,273 70 Residential 3,264 3,447 638 3,242 3 3,526 18 Consumer 229 229 41 229 199 Total $ 12,758 $ 14,503 $ 1,911 $ 12,268 $ 22 $ 12,166 $ 128 Included in the commercial real estate, residential real estate and commercial loan categories are troubled debt restructurings that are classified as impaired. Troubled debt restructurings totaled $3,365 at September 30, 2017, $1,909 at December 31, 2016 and $2,666 at September 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 were four loans, representing two credit relationships, modified as troubled debt restructurings for the three months ended September 30, 2017 totaling $1,249. For the nine months ended September 30, 2017, six loans were modified as troubled debt restructurings in the amount of $1,658. There were no loans modified as troubled debt restructurings for the three months ended September 30, 2016. For the nine months ended September 30, 2016, there was one loan modified as a troubled debt restructuring in the amount of $75. During the three and nine months ended September 30, 2017, there were no payment defaults on loans restructured within the last twelve months. During the three months ended September 30, 2016, there were no payment defaults on loans restructured within the last twelve months. During the nine months ended September 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	9 Months Ended
	Sep. 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 September 30, 2017, and December 31, 2016 are summarized as follows: September 30, 2017 December 31, 2016 Other real estate owned $ 358 $ 393 Investment in residential housing program 7,959 8,312 Mortgage servicing rights 728 698 Bank owned life insurance 33,646 33,073 Restricted equity securities 6,341 7,051 Other assets 17,374 15,974 Total $ 66,406 $ 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 nine months ended September 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	9 Months Ended
	Sep. 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. Interest rate swaps: The Company’s interest rate swaps are reported at fair value utilizing Level 2 inputs. Values of these instruments are obtained through an independent pricing source utilizing information which may include market observed quotations for swaps, Libor rates, forward rates and rate volatility. Derivative contracts create exposure to interest rate movements as well as risks from the potential of non-performance of the counterparty. 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 September 30, 2017 and December 31, 2016. Assets and liabilities measured at fair value on a recurring basis at September 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 September 30, 2017 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 20,046 $ 20,046 $ U.S. Government-sponsored enterprises 84,650 $ 84,650 State and Municipals: Taxable 15,207 15,207 Tax-exempt 100,505 100,505 Mortgage-backed securities: U.S. Government agencies 16,033 16,033 U.S. Government-sponsored enterprises 22,667 22,667 Common equity securities 30 30 Interest Rate Swap-other assets 548 548 Interest Rate Swap-other liabilities (603) (603) Total $ 259,083 $ 20,076 $ 239,007 $ 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 September 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 September 30, 2017 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,613 $ 1,613 Other real estate owned $ 358 $ 358 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 September 30, 2017 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,613 Appraisal of collateral Appraisal adjustments 5.9% to 98.2% (77.3)% Liquidation expenses 3.0% to 6.0% (4.8)% Other real estate owned $ 358 Appraisal of collateral Appraisal adjustments 25.0% to 38.2% (26.9)% 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 September 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 September 30, 2017 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 32,906 $ 32,906 $ 32,906 Investment securities: Available-for-sale 259,686 259,686 20,076 $ 239,610 Held-to-maturity 9,564 9,912 9,912 Loans held for sale 460 460 Net loans 1,613,684 1,595,623 $ 1,595,623 Accrued interest receivable 5,908 5,908 5,908 Mortgage servicing rights 728 1,655 1,655 Restricted equity securities 6,341 6,341 6,341 Interest rate swap 548 548 548 Total $ 1,929,825 $ 1,912,579 Financial liabilities: Deposits $ 1,687,855 $ 1,686,678 $ 1,686,678 Short-term borrowings 71,900 71,900 71,900 Long-term debt 50,199 50,984 50,984 Accrued interest payable 481 481 481 Interest rate swap 603 603 603 Total $ 1,811,038 $ 1,810,646 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	9 Months Ended
	Sep. 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 nine months ended September 30, salaries and employee benefits expense includes approximately $311 and $982 in 2017 and $240 and $843 in 2016 relating to the employee benefit plans. Components of net periodic benefit cost are as follows: Pension Benefits Three Months Ended September 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 Nine Months Ended September 30, 2017 2016 Components of net periodic pension cost: Interest cost $ 433 $ 499 Expected return on plan assets (610) (670) Amortization of unrecognized net gain 130 156 Net periodic other benefit cost $ (47) $ (15) 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. In May 2017, the Company’s stockholders approved the 2017 equity incentive plan (“2017 Plan”). The 2017 Plan allows for eligible participants to be granted equity awards. Under the 2017 Plan the Compensation Committee of the board of directors has the authority to, among other things: · Select the persons to be granted awards under the 2017 Plan. · Determine the type, size and term of awards. · Determine whether such performance objectives and conditions have been met. · Accelerate the vesting or excercisability of an award. Persons eligible to receive awards under the 2008 and 2017 Plans 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 September 30, 2017, there were 120,116 shares of the Company’s common stock available for grant as awards pursuant to the 2008 Plan and there were 98,462 shares of the Company’s common stock available for grant as awards pursuant to the 2017 Plan. The 2008 Plan will expire in January 2018. While the 2008 Plan will remain in effect in accordance with its terms to govern outstanding awards under that plan, the Company intends to make future grants under the 2017 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. The 2017 Plan authorizes grants of stock options, stock appreciation rights, cash awards, 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. Also in 2017, the Company awarded 342 shares of non-performance based restricted stock and 1,196 performance based restricted stock units under the 2017 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 $41 and $89 for the three and nine months ended September 30, 2017 and did not recognize any compensation expense for the three and nine months ended September 30, 2016 for awards granted under the 2008 Plan. As of September 30, 2017, the Company had $338 of unrecognized compensation expense associated with awards. The remaining cost is expected to be recognized over a weighted average vesting period of 2.5 years.

Derivatives and hedging activit

Derivatives and hedging activities	9 Months Ended
	Sep. 30, 2017
Derivatives and hedging activities
Derivatives and hedging activities	9. Derivatives and hedging activities Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. The Company’s existing interest rate derivatives result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of September 30, 2017. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of September 30, 2017 As of September 30, 2016 As of September 30, 2017 As of September 30, 2016 Balance Sheet Balance Sheet Balance Sheet Balance Sheet Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives not designated as hedging instruments Interest Rate Products Other Assets $ 548 Other Assets $ Other Liabilities $ 603 Other Liabilities $ Total derivatives not designated as hedging instruments $ 548 $ $ 603 $ Non-designated Hedges None of the Company’s derivatives are designated in qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers, which the Company implemented during the third quarter of 2017. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of September 30, 2017, the Company had 1 interest rate swap with an aggregate notional amount of $34,000 related to this program. Effect of Derivative Instruments on the Income Statement The tables below present the effect of the Company’s derivative financial instruments on the Income Statement for the three and nine months ended September 30, 2017. Amount of Gain or Amount of Gain or (Loss) Recognized in (Loss) Recognized in Location of Gain or (Loss) Income on Derivative Income on Derivative Recognized in Income on Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments Derivative September 30, 2017 September 30, 2017 Interest Rate Products Other non-interest income $ (55) $ (55) Total $ (55) $ (55) Credit-risk-related Contingent Features The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. The Company has agreements with certain of its derivative counterparties that contain provisions that require the Company’s debt to maintain an investment grade credit rating from each of the major credit rating agencies. If the Company’s credit rating is reduced below investment grade then a termination event shall be deemed to have occurred and the non-affected counterparty shall have the right but not obligation to terminate all affected transactions under the agreement. As of September 30, 2017 the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $55. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $760 against its obligations under these agreements. If the Company had breached any of these provisions at September 30, 2017, it could have been required to settle its obligations under the agreements at the termination value.

Summary of significant accoun17

Summary of significant accounting policies (Policies)	9 Months Ended
	Sep. 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-seven 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 nine months ended and as of September 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.
Derivative instruments and hedging activities	Derivative instruments and hedging activities The Financial Accounting Standards Board (“FASB”) ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Currently, none of the Company’s derivatives are designated in qualifying hedging relationships, as the derivatives are not used to manage risks within the Company’s assets or liabilities. As such, all changes in fair value of the Company’s derivatives are recognized directly in earnings. In accordance with the FASB’s fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
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. However, the Company’s revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. Based on the Company’s analysis of the effect of the new standard on its recurring revenue streams, it does not expect these changes to have a significant impact on the Company’s financial statements. Upon adoption on January 1, 2018, no significant adjustment to opening retained earnings is expected. 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 but due to the nature of the Company’s investments it is not expected to have a significant impact, if any. 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. Further, any impact on the allowance upon adoption is currently unknown but any change in allowance levels will affect 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. In August 2017, the Financial Accounting Standards Board issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities”. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company plans to adopt ASU 2017-12 on January 1, 2019. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. While the Company continues to assess all potential impacts of the standard, we currently expect adoption to have an immaterial impact on our consolidated financial statements, as exposure to derivatives contracts is only offered under special circumstances. The Company will continue to assess the financial statement impact as adoption draws closer and/or exposure to derivatives contracts grows to a level deemed to be material.

Other comprehensive loss (Table

Other comprehensive loss (Tables)	9 Months Ended
	Sep. 30, 2017
Other comprehensive loss
Schedule of components of accumulated other comprehensive loss	September 30, 2017 December 31, 2016 Net unrealized gain on investment securities available-for-sale $ 1,629 $ 553 Income tax 570 193 Net of income taxes 1,059 360 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 $ (3,456) $ (4,155)
Schedule of other comprehensive income (loss) and related tax effects	Three Months Ended September 30, 2017 2016 Unrealized loss on investment securities available-for-sale $ (381) $ (1,120) Net gain on the sale of investment securities available-for-sale(1) Other comprehensive loss before taxes (381) (1,120) Income tax benefit (133) (392) Other comprehensive loss before taxes $ (248) $ (728) Nine Months Ended September 30, 2017 2016 Unrealized gain on investment securities available-for-sale $ 1,076 $ 1,003 Net gain on the sale of investment securities available-for-sale(1) (623) Other comprehensive income gain before taxes 1,076 380 Income tax expense 377 133 Other comprehensive income $ 699 $ 247 (1)

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings per share
Schedule of earnings per share	2017 2016 For the Three Months Ended September 30, Basic Diluted Basic Diluted Net Income $ 5,350 $ 5,350 $ 5,118 $ 5,118 Average common shares outstanding 7,396,505 7,396,505 7,394,143 7,394,143 Earnings per share $ 0.72 $ 0.72 $ 0.69 $ 0.69 2017 2016 For the Nine Months Ended September 30 Basic Diluted Basic Diluted Net Income $ 15,809 $ 15,809 $ 14,855 $ 14,855 Average common shares outstanding 7,395,612 7,395,612 7,397,581 7,397,581 Earnings per share $ 2.14 $ 2.14 $ 2.01 $ 2.01

Investment securities (Tables)

Investment securities (Tables)	9 Months Ended
	Sep. 30, 2017
Schedule of amortized cost and fair value of investment securities aggregated by investment category	Gross Gross Amortized Unrealized Unrealized Fair September 30, 2017 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 20,045 $ 29 $ 28 $ 20,046 U.S. Government-sponsored enterprises 85,482 83 915 84,650 State and municipals: Taxable 14,594 615 2 15,207 Tax-exempt 98,494 2,062 51 100,505 Residential Mortgage-backed securities: U.S. Government agencies 16,045 21 33 16,033 U.S. Government-sponsored enterprises 16,492 29 95 16,426 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,326 85 6,241 Common equity securities 30 30 Total $ 257,508 $ 2,839 $ 1,209 $ 259,138 Held-to-maturity: Tax-exempt state and municipals $ 6,859 $ 185 $ 2 $ 7,042 Residential Mortgage-backed securities: U.S. Government agencies 58 58 U.S. Government-sponsored enterprises 2,647 165 2,812 Total $ 9,564 $ 350 $ 2 $ 9,912 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 Residential 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 Residential 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 September 30, 2017 Value Losses Value Losses Value Losses U.S. Treasury securities $ 5,494 $ 28 $ 5,494 $ 28 U.S. Government-sponsored enterprises 48,573 376 $ 29,309 $ 539 77,882 915 State and municipals: Taxable 551 2 551 2 Tax-exempt 5,330 50 2,482 3 7,812 53 Residential Mortgage-backed securities: U.S. Government agencies 5,671 13 3,175 20 8,846 33 U.S. Government-sponsored enterprises 8,492 25 4,775 70 13,267 95 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,241 85 6,241 85 Total $ 80,352 $ 579 $ 39,741 $ 632 $ 120,093 $ 1,211 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 Residential 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 September 30, 2017 Value Within one year $ 15,858 After one but within five years 148,810 After five but within ten years 40,582 After ten years 15,158 220,408 Mortgage-backed securities 38,700 Total $ 259,108
Held-to-maturity Securities
Schedule of maturity distribution of fair value	Amortized Fair September 30, 2017 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,859 $ 7,042 6,859 7,042 Mortgage-backed securities 2,705 2,870 Total $ 9,564 $ 9,912

Loans, net and allowance for 21

Loans, net and allowance for loan losses (Tables)	9 Months Ended
	Sep. 30, 2017
Loans, net and allowance for loan losses
Schedule of major classifications of loans outstanding	September 30, 2017 December 31, 2016 Commercial $ 449,464 $ 408,814 Real estate: Commercial 751,510 700,144 Residential 289,582 289,781 Consumer 141,959 134,226 Total $ 1,632,515 $ 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 nine months ended September 30, 2017 and 2016 are summarized as follows: Real estate September 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance July 1, 2017 $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ $ 17,802 Charge-offs (17) (82) (169) (268) Recoveries 3 41 4 49 97 Provisions 358 566 175 101 1,200 Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ $ 18,831 Real estate September 30, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance July 1, 2016 $ 3,263 $ 5,077 $ 4,465 $ 1,679 $ 315 $ 14,799 Charge-offs (72) (153) (130) (355) Recoveries 2 28 4 34 68 Provisions 321 548 245 86 1,200 Ending balance $ 3,586 $ 5,581 $ 4,561 $ 1,669 $ 315 $ 15,712 Real estate September 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 (49) (367) (105) (489) (1,010) Recoveries 16 96 30 138 280 Provisions 1,004 1,618 661 317 3,600 Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ $ 18,831 Real estate September 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) (175) (279) (260) (1,110) Recoveries 38 58 39 112 247 Provisions 902 1,453 719 234 292 3,600 Ending balance $ 3,586 $ 5,581 $ 4,561 $ 1,669 $ 315 $ 15,712 The allocation of the allowance for loan losses and the related loans by major classifications of loans at September 30, 2017 and December 31, 2016 is summarized as follows: Real estate September 30, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ $ 18,831 Ending balance: individually evaluated for impairment 436 631 616 23 1,706 Ending balance: collectively evaluated for impairment 4,334 6,563 4,677 1,551 17,125 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 449,464 $ 751,510 $ 289,582 $ 141,959 $ $ 1,632,515 Ending balance: individually evaluated for impairment 2,789 4,062 3,697 194 10,742 Ending balance: collectively evaluated for impairment 446,322 746,802 285,854 141,765 1,620,743 Ending balance: loans acquired with deteriorated credit quality $ 353 $ 646 $ 31 $ $ $ 1,030 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 September 30, 2017 Pass Mention Substandard Doubtful Total Commercial $ 441,503 $ 5,028 $ 2,933 $ $ 449,464 Real estate: Commercial 724,659 14,730 12,121 751,510 Residential 283,690 19 5,873 289,582 Consumer 141,618 341 141,959 Total $ 1,591,470 $ 19,777 $ 21,268 $ $ 1,632,515 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	September 30, 2017 December 31, 2016 Commercial $ 1,263 $ 934 Real estate: Commercial 4,233 7,016 Residential 3,031 3,003 Consumer 194 155 Total $ 8,721 $ 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 September 30, 2017 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 260 $ 84 $ 1,263 $ 1,607 $ 447,857 $ 449,464 Real estate: Commercial 831 135 4,233 5,199 746,311 751,510 Residential 1,756 147 4,312 6,215 283,367 289,582 $ 1,281 Consumer 846 357 423 1,626 140,333 141,959 229 Total $ 3,693 $ 723 $ 10,231 $ 14,647 $ 1,617,868 $ 1,632,515 $ 1,510 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 September 30, 2017 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 2,310 $ 2,455 $ 1,945 $ 28 $ 1,765 $ 63 Real estate: Commercial 2,900 3,192 2,979 6 3,009 19 Residential 2,303 2,727 2,193 4 2,235 10 Consumer 171 183 180 175 Total 7,684 8,557 7,297 38 7,184 92 With an allowance recorded: Commercial 833 910 $ 436 783 943 Real estate: Commercial 1,807 2,073 631 1,673 6 2,402 13 Residential 1,425 1,663 616 1,330 8 1,270 22 Consumer 23 23 23 34 23 Total 4,088 4,669 1,706 3,820 14 4,638 35 Commercial 3,143 3,365 436 2,728 28 2,708 63 Real estate: Commercial 4,707 5,265 631 4,652 12 5,411 32 Residential 3,728 4,390 616 3,523 12 3,505 32 Consumer 194 206 23 214 198 Total $ 11,772 $ 13,226 $ 1,706 $ 11,117 $ 52 $ 11,822 $ 127 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 September 30, 2016 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 970 $ 1,876 $ 1,133 $ $ 1,214 Real estate: Commercial 6,156 6,812 5,837 4,396 Residential 2,171 2,354 2,056 2,263 Consumer 188 188 173 119 Total 9,485 11,230 9,199 22 7,992 124 With an allowance recorded: Commercial 1,396 1,396 $ 895 1,006 954 $ Real estate: Commercial 743 743 337 821 1,877 Residential 1,093 1,093 638 1,186 1,263 4 Consumer 41 41 41 56 80 Total 3,273 3,273 1,911 3,069 — 4,174 4 Commercial 2,366 3,272 895 2,139 10 2,168 40 Real estate: Commercial 6,899 7,555 337 6,658 9 6,273 70 Residential 3,264 3,447 638 3,242 3 3,526 18 Consumer 229 229 41 229 199 Total $ 12,758 $ 14,503 $ 1,911 $ 12,268 $ 22 $ 12,166 $ 128

Other assets and gain on sale22

Other assets and gain on sale of merchant services business (Tables)	9 Months Ended
	Sep. 30, 2017
Other assets and gain on sale of merchant services business.
Schedule of components of other assets	September 30, 2017 December 31, 2016 Other real estate owned $ 358 $ 393 Investment in residential housing program 7,959 8,312 Mortgage servicing rights 728 698 Bank owned life insurance 33,646 33,073 Restricted equity securities 6,341 7,051 Other assets 17,374 15,974 Total $ 66,406 $ 65,501

Fair value estimates (Tables)

Fair value estimates (Tables)	9 Months Ended
	Sep. 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 September 30, 2017 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 20,046 $ 20,046 $ U.S. Government-sponsored enterprises 84,650 $ 84,650 State and Municipals: Taxable 15,207 15,207 Tax-exempt 100,505 100,505 Mortgage-backed securities: U.S. Government agencies 16,033 16,033 U.S. Government-sponsored enterprises 22,667 22,667 Common equity securities 30 30 Interest Rate Swap-other assets 548 548 Interest Rate Swap-other liabilities (603) (603) Total $ 259,083 $ 20,076 $ 239,007 $ 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 September 30, 2017 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,613 $ 1,613 Other real estate owned $ 358 $ 358 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 September 30, 2017 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,613 Appraisal of collateral Appraisal adjustments 5.9% to 98.2% (77.3)% Liquidation expenses 3.0% to 6.0% (4.8)% Other real estate owned $ 358 Appraisal of collateral Appraisal adjustments 25.0% to 38.2% (26.9)% 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 September 30, 2017 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 32,906 $ 32,906 $ 32,906 Investment securities: Available-for-sale 259,686 259,686 20,076 $ 239,610 Held-to-maturity 9,564 9,912 9,912 Loans held for sale 460 460 Net loans 1,613,684 1,595,623 $ 1,595,623 Accrued interest receivable 5,908 5,908 5,908 Mortgage servicing rights 728 1,655 1,655 Restricted equity securities 6,341 6,341 6,341 Interest rate swap 548 548 548 Total $ 1,929,825 $ 1,912,579 Financial liabilities: Deposits $ 1,687,855 $ 1,686,678 $ 1,686,678 Short-term borrowings 71,900 71,900 71,900 Long-term debt 50,199 50,984 50,984 Accrued interest payable 481 481 481 Interest rate swap 603 603 603 Total $ 1,811,038 $ 1,810,646 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)	9 Months Ended
	Sep. 30, 2017
Employee benefit plans
Schedule of components of net periodic benefit cost	Pension Benefits Three Months Ended September 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 Nine Months Ended September 30, 2017 2016 Components of net periodic pension cost: Interest cost $ 433 $ 499 Expected return on plan assets (610) (670) Amortization of unrecognized net gain 130 156 Net periodic other benefit cost $ (47) $ (15)

Derivatives and hedging activ25

Derivatives and hedging activities (Tables)	9 Months Ended
	Sep. 30, 2017
Derivatives and hedging activities
Schedule of fair value of derivative financial instruments and balance sheet classification	Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of September 30, 2017 As of September 30, 2016 As of September 30, 2017 As of September 30, 2016 Balance Sheet Balance Sheet Balance Sheet Balance Sheet Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives not designated as hedging instruments Interest Rate Products Other Assets $ 548 Other Assets $ Other Liabilities $ 603 Other Liabilities $ Total derivatives not designated as hedging instruments $ 548 $ $ 603 $
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Gain or Amount of Gain or (Loss) Recognized in (Loss) Recognized in Location of Gain or (Loss) Income on Derivative Income on Derivative Recognized in Income on Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments Derivative September 30, 2017 September 30, 2017 Interest Rate Products Other non-interest income $ (55) $ (55) Total $ (55) $ (55)

Summary of significant accoun26

Summary of significant accounting policies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2017Office
Summary of significant accounting policies
Number of full-service community banking offices	27

Other comprehensive loss - Comp

Other comprehensive loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Other comprehensive loss
Net unrealized gain on investment securities available-for-sale	$ 1,629	$ 553
Income tax	570	193
Net of income taxes	1,059	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	$ (3,456)	$ (4,155)

Other comprehensive loss - Othe

Other comprehensive loss - Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other comprehensive loss
Unrealized gain (loss) on investment securities available-for-sale	$ (381)	$ (1,120)	$ 1,076	$ 1,003
Net gain on the sale of investment securities available-for-sale(1)				(623)
Other comprehensive income gain (loss) before taxes	(381)	(1,120)	1,076	380
Income tax	(133)	(392)	377	133
Other comprehensive income, net of income taxes	$ (248)	$ (728)	$ 699	$ 247

Earnings per share - Shares Con

Earnings per share - Shares Considered Anti-dilutive (Details) - shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings per share
Net Income, Basic	$ 5,350	$ 5,118	$ 15,809	$ 14,855
Average common shares outstanding, Basic	7,396,505	7,394,143	7,395,612	7,397,581
Earnings per share, Basic	$ 0.72	$ 0.69	$ 2.14	$ 2.01
Net Income, Diluted	$ 5,350	$ 5,118	$ 15,809	$ 14,855
Average common shares outstanding, Diluted	7,396,505	7,394,143	7,395,612	7,397,581
Earnings per share, Diluted	$ 0.72	$ 0.69	$ 2.14	$ 2.01

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	$ 257,508	$ 258,857
Available-for-sale, Gross Unrealized Gains	2,839	3,050
Available-for-sale, Gross Unrealized Losses	1,209	2,497
Available-for-sale, Fair Value	259,138	259,410
Held-to-maturity, Amortized Cost	9,564	10,517
Held-to-maturity, Gross Unrealized Gains	350	264
Held-to-maturity, Gross Unrealized Losses	2	67
Held-to-maturity, Fair value	9,912	10,714
Mortgage-backed Securities, U.S. Government agencies
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	16,045	21,041
Available-for-sale, Gross Unrealized Gains	21	48
Available-for-sale, Gross Unrealized Losses	33	47
Available-for-sale, Fair Value	16,033	21,042
Held-to-maturity, Amortized Cost	58	68
Held-to-maturity, Gross Unrealized Gains		1
Held-to-maturity, Fair value	58	69
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	16,492	22,303
Available-for-sale, Gross Unrealized Gains	29	48
Available-for-sale, Gross Unrealized Losses	95	159
Available-for-sale, Fair Value	16,426	22,192
Held-to-maturity, Amortized Cost	2,647	3,587
Held-to-maturity, Gross Unrealized Gains	165	191
Held-to-maturity, Fair value	2,812	3,778
Commercial mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	6,326
Available-for-sale, Gross Unrealized Losses	85
Available-for-sale, Fair Value	6,241
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	85,482	82,314
Available-for-sale, Gross Unrealized Gains	83	79
Available-for-sale, Gross Unrealized Losses	915	1,480
Available-for-sale, Fair Value	84,650	80,913
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	20,045	7,570
Available-for-sale, Gross Unrealized Gains	29
Available-for-sale, Gross Unrealized Losses	28	132
Available-for-sale, Fair Value	20,046	7,438
Common Stock
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	30
Available-for-sale, Fair Value	30
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	14,594	14,698
Available-for-sale, Gross Unrealized Gains	615	566
Available-for-sale, Gross Unrealized Losses	2	39
Available-for-sale, Fair Value	15,207	15,225
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Available-for-sale, Amortized Cost	98,494	110,931
Available-for-sale, Gross Unrealized Gains	2,062	2,309
Available-for-sale, Gross Unrealized Losses	51	640
Available-for-sale, Fair Value	100,505	112,600
Held-to-maturity, Amortized Cost	6,859	6,862
Held-to-maturity, Gross Unrealized Gains	185	72
Held-to-maturity, Gross Unrealized Losses	2	67
Held-to-maturity, Fair value	$ 7,042	$ 6,867

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Total	$ 259,138	$ 259,410
Peoples Bank
Within one year	15,858
After one but within five years	148,810
After five but within ten years	40,582
After ten years	15,158
Available for sale securities	220,408
Mortgage-backed securities	38,700
Total	$ 259,108

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After ten years, Held to maturity	$ 6,859
Amortized Cost, Held to maturity	6,859
Amortized Cost, Mortgage-backed securities, Held to maturity	2,705
Held-to-maturity, Amortized Cost	9,564	$ 10,517
Fair Value of Held-to-maturity Securities
Fair Value, After ten years, Held to maturity	7,042
Fair Value, Held to maturity	7,042
Fair Value, Mortgage-backed securities, Held to maturity	2,870
Held to maturity, Fair Value	$ 9,912	$ 10,714

Investment securities - Additio

Investment securities - Additional Information (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017USD ($)security	Dec. 31, 2016USD ($)security
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged | $	$ 165,205	$ 144,750
Number of investment securities held	74	163
US Government Agency and Sponsored Enterprises
Available-for-sale and Held-to-maturity securities
Number of investment securities held	29
Number of securities in continuous unrealized loss positions 12 months or longer	10
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Number of investment securities held	11	107
Number of securities in continuous unrealized loss positions 12 months or longer	4
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	31	30
Number of securities in continuous unrealized loss positions 12 months or longer	14
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Number of investment securities held	2	2

Investment securities - Fair Va

Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	$ 80,352	$ 145,428
Less Than 12 Months, Unrealized Losses	579	2,470
12 Months or More, Fair Value	39,741	4,434
12 Months or More, Unrealized Losses	632	94
Total, Fair Value	120,093	149,862
Total, Unrealized Losses	1,211	2,564
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	551	1,035
Less Than 12 Months, Unrealized Losses	2	39
Total, Fair Value	551	1,035
Total, Unrealized Losses	2	39
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	5,330	55,166
Less Than 12 Months, Unrealized Losses	50	707
12 Months or More, Fair Value	2,482	226
12 Months or More, Unrealized Losses	3
Total, Fair Value	7,812	55,392
Total, Unrealized Losses	53	707
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	5,494	7,438
Less Than 12 Months, Unrealized Losses	28	132
Total, Fair Value	5,494	7,438
Total, Unrealized Losses	28	132
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	48,573	59,460
Less Than 12 Months, Unrealized Losses	376	1,480
12 Months or More, Fair Value	29,309
12 Months or More, Unrealized Losses	539
Total, Fair Value	77,882	59,460
Total, Unrealized Losses	915	1,480
Mortgage-backed Securities, U.S. Government agencies
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	5,671	5,917
Less Than 12 Months, Unrealized Losses	13	27
12 Months or More, Fair Value	3,175	1,496
12 Months or More, Unrealized Losses	20	20
Total, Fair Value	8,846	7,413
Total, Unrealized Losses	33	47
Commercial mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	6,241
Less Than 12 Months, Unrealized Losses	85
Total, Fair Value	6,241
Total, Unrealized Losses	85
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	8,492	16,412
Less Than 12 Months, Unrealized Losses	25	85
12 Months or More, Fair Value	4,775	2,712
12 Months or More, Unrealized Losses	70	74
Total, Fair Value	13,267	19,124
Total, Unrealized Losses	$ 95	$ 159

Loans, net and allowance for 36

Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Loans, net and allowance for loan losses
Net deferred loan costs	$ 646	$ 579

Loans, net and allowance for 37

Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,632,515	$ 1,532,965
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	449,464	408,814
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	751,510	700,144
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	289,582	289,781
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 141,959	$ 134,226

Loans, net and allowance for 38

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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Allowance for loan losses:
Beginning Balance	$ 17,802	$ 14,799	$ 15,961	$ 12,975
Charge-offs	(268)	(355)	(1,010)	(1,110)
Recoveries	97	68	280	247
Provisions	1,200	1,200	3,600	3,600
Ending balance	18,831	15,712	18,831	15,712
Beginning Balance	17,802	14,799	15,961	12,975
Ending balance: individually evaluated for impairment					$ 1,706	$ 1,942
Charge-offs	(268)	(355)	(1,010)	(1,110)
Ending balance: collectively evaluated for impairment					17,125	14,019
Recoveries	97	68	280	247
Ending balance: loans acquired with deteriorated credit quality	17,802	14,799	15,961	12,975	18,831	15,961
Provisions	1,200	1,200	3,600	3,600
Loans receivable:
Total Loans					1,632,515	1,532,965
Ending balance: individually evaluated for impairment					10,742	11,242
Ending balance: collectively evaluated for impairment					1,620,743	1,519,386
Total Loans					1,632,515	1,532,965
Ending balance	18,831	15,712	18,831	15,712
Ending balance: individually evaluated for impairment					10,742	11,242
Ending balance: collectively evaluated for impairment					1,620,743	1,519,386
Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance					1,030	2,337
Ending balance					1,030	2,337
Commercial
Allowance for loan losses:
Beginning Balance	4,426	3,263	3,799	3,042
Charge-offs	(17)		(49)	(396)
Recoveries	3	2	16	38
Provisions	358	321	1,004	902
Ending balance	4,770	3,586	4,770	3,586
Beginning Balance	4,426	3,263	3,799	3,042
Ending balance: individually evaluated for impairment					436	225
Charge-offs	(17)		(49)	(396)
Ending balance: collectively evaluated for impairment					4,334	3,574
Recoveries	3	2	16	38
Ending balance: loans acquired with deteriorated credit quality	4,426	3,263	3,799	3,042	4,770	3,799
Provisions	358	321	1,004	902
Loans receivable:
Total Loans					449,464	408,814
Ending balance: individually evaluated for impairment					2,789	1,724
Ending balance: collectively evaluated for impairment					446,322	406,127
Total Loans					449,464	408,814
Ending balance	4,770	3,586	4,770	3,586
Ending balance: individually evaluated for impairment					2,789	1,724
Ending balance: collectively evaluated for impairment					446,322	406,127
Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance					353	963
Ending balance					353	963
Real estate Commercial
Allowance for loan losses:
Beginning Balance	6,587	5,077	5,847	4,245
Charge-offs		(72)	(367)	(175)
Recoveries	41	28	96	58
Provisions	566	548	1,618	1,453
Ending balance	7,194	5,581	7,194	5,581
Beginning Balance	6,587	5,077	5,847	4,245
Ending balance: individually evaluated for impairment					631	1,197
Charge-offs		(72)	(367)	(175)
Ending balance: collectively evaluated for impairment					6,563	4,650
Recoveries	41	28	96	58
Ending balance: loans acquired with deteriorated credit quality	6,587	5,077	5,847	4,245	7,194	5,847
Provisions	566	548	1,618	1,453
Loans receivable:
Total Loans					751,510	700,144
Ending balance: individually evaluated for impairment					4,062	5,820
Ending balance: collectively evaluated for impairment					746,802	692,987
Total Loans					751,510	700,144
Ending balance	7,194	5,581	7,194	5,581
Ending balance: individually evaluated for impairment					4,062	5,820
Ending balance: collectively evaluated for impairment					746,802	692,987
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance					646	1,337
Ending balance					646	1,337
Real estate Residential
Allowance for loan losses:
Beginning Balance	5,196	4,465	4,707	4,082
Charge-offs	(82)	(153)	(105)	(279)
Recoveries	4	4	30	39
Provisions	175	245	661	719
Ending balance	5,293	4,561	5,293	4,561
Beginning Balance	5,196	4,465	4,707	4,082
Ending balance: individually evaluated for impairment					616	520
Charge-offs	(82)	(153)	(105)	(279)
Ending balance: collectively evaluated for impairment					4,677	4,187
Recoveries	4	4	30	39
Ending balance: loans acquired with deteriorated credit quality	5,196	4,465	4,707	4,082	5,293	4,707
Provisions	175	245	661	719
Loans receivable:
Total Loans					289,582	289,781
Ending balance: individually evaluated for impairment					3,697	3,543
Ending balance: collectively evaluated for impairment					285,854	286,201
Total Loans					289,582	289,781
Ending balance	5,293	4,561	5,293	4,561
Ending balance: individually evaluated for impairment					3,697	3,543
Ending balance: collectively evaluated for impairment					285,854	286,201
Real estate Residential | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance					31	37
Ending balance					31	37
Consumer
Allowance for loan losses:
Beginning Balance	1,593	1,679	1,608	1,583
Charge-offs	(169)	(130)	(489)	(260)
Recoveries	49	34	138	112
Provisions	101	86	317	234
Ending balance	1,574	1,669	1,574	1,669
Beginning Balance	1,593	1,679	1,608	1,583
Ending balance: individually evaluated for impairment					23
Charge-offs	(169)	(130)	(489)	(260)
Ending balance: collectively evaluated for impairment					1,551	1,608
Recoveries	49	34	138	112
Ending balance: loans acquired with deteriorated credit quality	1,593	1,679	1,608	1,583	1,574	1,608
Provisions	101	86	317	234
Loans receivable:
Total Loans					141,959	134,226
Ending balance: individually evaluated for impairment					194	155
Ending balance: collectively evaluated for impairment					141,765	134,071
Total Loans					141,959	134,226
Ending balance	$ 1,574	1,669	$ 1,574	1,669
Ending balance: individually evaluated for impairment					194	155
Ending balance: collectively evaluated for impairment					$ 141,765	$ 134,071
Unallocated
Allowance for loan losses:
Beginning Balance		315		23
Provisions				292
Ending balance		315		315
Beginning Balance		315		23
Ending balance: loans acquired with deteriorated credit quality		315		23
Provisions				292
Loans receivable:
Ending balance		$ 315		$ 315

Loans, net and allowance for 39

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	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Allowance for loan losses:
Ending balance	$ 18,831	$ 17,802	$ 15,961	$ 15,712	$ 14,799	$ 12,975
Ending balance: individually evaluated for impairment	1,706		1,942
Ending balance: collectively evaluated for impairment	17,125		14,019
Loans receivable:
Ending balance	1,632,515		1,532,965
Ending balance: individually evaluated for impairment	10,742		11,242
Ending balance: collectively evaluated for impairment	1,620,743		1,519,386
Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	1,030		2,337
Commercial
Allowance for loan losses:
Ending balance	4,770	4,426	3,799	3,586	3,263	3,042
Ending balance: individually evaluated for impairment	436		225
Ending balance: collectively evaluated for impairment	4,334		3,574
Loans receivable:
Ending balance	449,464		408,814
Ending balance: individually evaluated for impairment	2,789		1,724
Ending balance: collectively evaluated for impairment	446,322		406,127
Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	353		963
Real estate Commercial
Allowance for loan losses:
Ending balance	7,194	6,587	5,847	5,581	5,077	4,245
Ending balance: individually evaluated for impairment	631		1,197
Ending balance: collectively evaluated for impairment	6,563		4,650
Loans receivable:
Ending balance	751,510		700,144
Ending balance: individually evaluated for impairment	4,062		5,820
Ending balance: collectively evaluated for impairment	746,802		692,987
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	646		1,337
Real estate Residential
Loans receivable:
Ending balance	289,582		289,781
Consumer
Allowance for loan losses:
Ending balance	1,574	$ 1,593	1,608	1,669	1,679	1,583
Ending balance: individually evaluated for impairment	23
Ending balance: collectively evaluated for impairment	1,551		1,608
Loans receivable:
Ending balance	141,959		134,226
Ending balance: individually evaluated for impairment	194		155
Ending balance: collectively evaluated for impairment	$ 141,765		$ 134,071
Unallocated
Allowance for loan losses:
Ending balance				$ 315	$ 315	$ 23

Loans, net and allowance for 40

Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,632,515	$ 1,532,965
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	449,464	408,814
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	751,510	700,144
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	289,582	289,781
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	141,959	134,226
Pass
Accounts, Notes, Loans and Financing Receivable
Loans, net	1,591,470	1,490,501
Pass | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	441,503	398,867
Pass | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	724,659	674,914
Pass | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	283,690	282,737
Pass | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	141,618	133,983
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans, net	19,777	16,847
Special Mention | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	5,028	6,222
Special Mention | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	14,730	10,392
Special Mention | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	19	233
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans, net	21,268	25,617
Substandard | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	2,933	3,725
Substandard | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	12,121	14,838
Substandard | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	5,873	6,811
Substandard | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 341	$ 243

Loans, net and allowance for 41

Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 8,721	$ 11,108
Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	1,263	934
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	4,233	7,016
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	3,031	3,003
Consumer
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 194	$ 155

Loans, net and allowance for 42

Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 14,647	$ 21,260
Current	1,617,868	1,511,705
Total Loans	1,632,515	1,532,965
Loans > 90 Days and Accruing	1,510	844
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,693	8,093
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	723	1,215
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	10,231	11,952
Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,607	1,258
Current	447,857	407,556
Total Loans	449,464	408,814
Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	260	249
Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	84	75
Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,263	934
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	5,199	12,325
Current	746,311	687,819
Total Loans	751,510	700,144
Real estate Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	831	4,782
Real estate Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	135	527
Real estate Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,233	7,016
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	6,215	6,015
Current	283,367	283,766
Total Loans	289,582	289,781
Loans > 90 Days and Accruing	1,281	558
Real estate Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,756	2,100
Real estate Residential | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	147	354
Real estate Residential | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,312	3,561
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,626	1,662
Current	140,333	132,564
Total Loans	141,959	134,226
Loans > 90 Days and Accruing	229	286
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	846	962
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	357	259
Consumer | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 423	$ 441

Loans, net and allowance for 43

Loans, net and allowance for loan losses - Summarize Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 7,684	$ 9,485	$ 7,684	$ 9,485	$ 7,128
Unpaid Principal Balance, With no related allowance, Total	8,557	11,230	8,557	11,230	8,774
Average Recorded Investment, With no related allowance, Total	7,297	9,199	7,184	7,992	8,041
Interest Income Recognized, With no related allowance, Total	38	22	92	124	154
Recorded Investment, With an allowance recorded, Total	4,088	3,273	4,088	3,273	6,451
Unpaid Principal Balance, With an allowance recorded, Total	4,669	3,273	4,669	3,273	6,452
Related Allowance, With an allowance recorded, Total	1,706	1,911	1,706	1,911	1,942
Average Recorded Investment, With an allowance recorded, Total	3,820	3,069	4,638	4,174	4,460
Interest Income Recognized, With an allowance recorded, Total	14		35	4	9
Recorded Investment, Total	11,772	12,758	11,772	12,758	13,579
Unpaid Principal Balance, Total	13,226	14,503	13,226	14,503	15,226
Related Allowance, With an allowance recorded, Total	1,706	1,911	1,706	1,911	1,942
Average Recorded Investment, Total	11,117	12,268	11,822	12,166	12,501
Interest Income Recognized, Total	52	22	127	128	163
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,310	970	2,310	970	2,404
Unpaid Principal Balance, With no related allowance, Total	2,455	1,876	2,455	1,876	3,213
Average Recorded Investment, With no related allowance, Total	1,945	1,133	1,765	1,214	1,461
Interest Income Recognized, With no related allowance, Total	28	10	63	40	48
Recorded Investment, With an allowance recorded, Total	833	1,396	833	1,396	283
Unpaid Principal Balance, With an allowance recorded, Total	910	1,396	910	1,396	283
Related Allowance, With an allowance recorded, Total	436	895	436	895	225
Average Recorded Investment, With an allowance recorded, Total	783	1,006	943	954	859
Recorded Investment, Total	3,143	2,366	3,143	2,366	2,687
Unpaid Principal Balance, Total	3,365	3,272	3,365	3,272	3,496
Related Allowance, With an allowance recorded, Total	436	895	436	895	225
Average Recorded Investment, Total	2,728	2,139	2,708	2,168	2,320
Interest Income Recognized, Total	28	10	63	40	48
Real estate Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,900	6,156	2,900	6,156	2,364
Unpaid Principal Balance, With no related allowance, Total	3,192	6,812	3,192	6,812	3,018
Average Recorded Investment, With no related allowance, Total	2,979	5,837	3,009	4,396	4,300
Interest Income Recognized, With no related allowance, Total	6	9	19	70	71
Recorded Investment, With an allowance recorded, Total	1,807	743	1,807	743	4,793
Unpaid Principal Balance, With an allowance recorded, Total	2,073	743	2,073	743	4,793
Related Allowance, With an allowance recorded, Total	631	337	631	337	1,197
Average Recorded Investment, With an allowance recorded, Total	1,673	821	2,402	1,877	2,366
Interest Income Recognized, With an allowance recorded, Total	6		13		2
Recorded Investment, Total	4,707	6,899	4,707	6,899	7,157
Unpaid Principal Balance, Total	5,265	7,555	5,265	7,555	7,811
Related Allowance, With an allowance recorded, Total	631	337	631	337	1,197
Average Recorded Investment, Total	4,652	6,658	5,411	6,273	6,666
Interest Income Recognized, Total	12	9	32	70	73
Real estate Residential
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,303	2,171	2,303	2,171	2,205
Unpaid Principal Balance, With no related allowance, Total	2,727	2,354	2,727	2,354	2,388
Average Recorded Investment, With no related allowance, Total	2,193	2,056	2,235	2,263	2,133
Interest Income Recognized, With no related allowance, Total	4	3	10	14	35
Recorded Investment, With an allowance recorded, Total	1,425	1,093	1,425	1,093	1,375
Unpaid Principal Balance, With an allowance recorded, Total	1,663	1,093	1,663	1,093	1,376
Related Allowance, With an allowance recorded, Total	616	638	616	638	520
Average Recorded Investment, With an allowance recorded, Total	1,330	1,186	1,270	1,263	1,185
Interest Income Recognized, With an allowance recorded, Total	8		22	4	7
Recorded Investment, Total	3,728	3,264	3,728	3,264	3,580
Unpaid Principal Balance, Total	4,390	3,447	4,390	3,447	3,764
Related Allowance, With an allowance recorded, Total	616	638	616	638	520
Average Recorded Investment, Total	3,523	3,242	3,505	3,526	3,318
Interest Income Recognized, Total	12	3	32	18	42
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	171	188	171	188	155
Unpaid Principal Balance, With no related allowance, Total	183	188	183	188	155
Average Recorded Investment, With no related allowance, Total	180	173	175	119	147
Recorded Investment, With an allowance recorded, Total	23	41	23	41
Unpaid Principal Balance, With an allowance recorded, Total	23	41	23	41
Related Allowance, With an allowance recorded, Total	23	41	23	41
Average Recorded Investment, With an allowance recorded, Total	34	56	23	80	50
Recorded Investment, Total	194	229	194	229	155
Unpaid Principal Balance, Total	206	229	206	229	155
Related Allowance, With an allowance recorded, Total	23	41	23	41
Average Recorded Investment, Total	$ 214	$ 229	$ 198	$ 199	$ 197

Loans, net and allowance for 44

Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)loanitem	Sep. 30, 2017USD ($)loan	Sep. 30, 2016USD ($)loan	Dec. 31, 2016USD ($)
Pre-Modification Outstanding Recorded Investment		$ 3,365,000	$ 2,666,000	$ 1,909,000
Loans modified as troubled debt restructuring	$ 1,249,000	$ 1,658,000	$ 75,000
Number of loans modified as troubled debt restructuring | loan	4	6	1
Credit relationships | item	2
Real estate Residential
Number of defaults on loans restructured			$ 2
Loans modified as troubled debt restructuring			$ 208,000

Other assets and gain on sale45

Other assets and gain on sale of merchant services business - Components of Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other assets and gain on sale of merchant services business.
Other real estate owned	$ 358	$ 393
Investment in residential housing program	7,959	8,312
Mortgage servicing rights	728	698
Bank owned life insurance	33,646	33,073
Restricted equity securities	6,341	7,051
Other assets	17,374	15,974
Total	$ 66,406	$ 65,501

Other assets and gain on sale46

Other assets and gain on sale of merchant services business - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Proceeds from the sale of merchant services business	$ 2,300
Net gain on sale of business	2,278
Property, Plant and Equipment, Net	37,373	$ 33,260
Other Assets
Property, Plant and Equipment, Net	$ 22

Fair value of financial instrum

Fair value of financial instruments - Commitments Subject to Undue Credit Risk (Details) $ in Thousands	Sep. 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) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	$ 548
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	548
Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	259,083	$ 259,410
Recurring Basis | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	20,046	7,438
Recurring Basis | U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	84,650	80,913
Recurring Basis | State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	15,207	15,225
Recurring Basis | State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	100,505	112,600
Recurring Basis | Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	16,033	21,042
Recurring Basis | Mortgage-backed Securities, U.S. Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	22,667	22,192
Recurring Basis | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	30
Recurring Basis | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(603)
Recurring Basis | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	20,076	7,438
Recurring Basis | Level 1 | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	20,046	7,438
Recurring Basis | Level 1 | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	30
Recurring Basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	239,007	251,972
Recurring Basis | 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	84,650	80,913
Recurring Basis | Level 2 | State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	15,207	15,225
Recurring Basis | Level 2 | State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	100,505	112,600
Recurring Basis | 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	16,033	21,042
Recurring Basis | 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	22,667	$ 22,192
Recurring Basis | Level 2 | Interest rate swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	$ (603)

Fair value estimates - Schedu49

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 1,613	$ 3,193
Other real estate owned	358	371
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	1,613	3,193
Other real estate owned	$ 358	$ 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	Sep. 30, 2017	Dec. 31, 2016
Other real estate owned
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 358	$ 371
Range and weighted average of appraisal adjustments	26.90%	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	25.00%	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	$ 1,613	$ 3,193
Range and weighted average of appraisal adjustments	77.30%	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	5.90%	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	98.20%	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	Sep. 30, 2017	Dec. 31, 2016
Investment securities:
Available-for-sale	$ 259,138	$ 259,410
Held-to-maturity	9,912	10,714
Mortgage servicing rights	728	698
Carrying Value
Financial assets:
Cash and cash equivalents	32,906	39,941
Investment securities:
Available-for-sale	259,686	259,410
Held-to-maturity	9,564	10,517
Loans held for sale	460
Net loans	1,613,684	1,517,004
Accrued interest receivable	5,908	6,228
Mortgage servicing rights	728	698
Restricted equity securities	6,341	7,051
Interest rate swaps	548
Total assets	1,929,825	1,840,849
Financial liabilities:
Deposits	1,687,855	1,588,757
Short-term borrowings	71,900	82,700
Long-term debt	50,199	58,134
Accrued interest payable	481	462
Interest rate swap	603
Total liabilities	1,811,038	1,730,053
Fair Value
Financial assets:
Cash and cash equivalents	32,906	39,941
Investment securities:
Available-for-sale	259,686	259,410
Held-to-maturity	9,912	10,714
Loans held for sale	460
Net loans	1,595,623	1,507,936
Accrued interest receivable	5,908	6,228
Mortgage servicing rights	1,655	1,587
Restricted equity securities	6,341	7,051
Interest rate swaps	548
Total assets	1,912,579	1,832,867
Financial liabilities:
Deposits	1,686,678	1,587,701
Short-term borrowings	71,900	82,700
Long-term debt	50,984	58,987
Accrued interest payable	481	462
Interest rate swap	603
Total liabilities	1,810,646	1,729,850
Level 1
Financial assets:
Cash and cash equivalents	32,906	39,941
Investment securities:
Available-for-sale	20,076	7,438
Level 2
Investment securities:
Available-for-sale	239,610	251,972
Held-to-maturity	9,912	10,714
Loans held for sale	460
Accrued interest receivable	5,908	6,228
Mortgage servicing rights	1,655	1,587
Restricted equity securities	6,341	7,051
Interest rate swaps	548
Financial liabilities:
Deposits	1,686,678	1,587,701
Short-term borrowings	71,900	82,700
Long-term debt	50,984	58,987
Accrued interest payable	481	462
Interest rate swap	603
Level 3
Investment securities:
Net loans	$ 1,595,623	$ 1,507,936

Employee benefit plans - Net Pe

Employee benefit plans - Net Periodic Pension Cost (Details) - Pension Benefits - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Defined Benefit Plan Disclosure
Interest cost	$ 217	$ 166	$ 433	$ 499
Expected return on plan assets	(305)	(223)	(610)	(670)
Amortization of unrecognized net gain	65	52	130	156
Net periodic pension cost	$ (23)	$ (5)	$ (47)	$ (15)

Employee benefit plans - Additi

Employee benefit plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 311	$ 240	$ 982	$ 843
Shares or units awarded			2,362
Unrecognized compensation expense	53		$ 53
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 41		$ 89
Common stock available for grant as awards	120,116		120,116
Unrecognized compensation expense	$ 338		$ 338
Weighted average vesting period			2 years 6 months
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Common stock available for grant as awards	98,462		98,462
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
Non-Performance-based restricted stock | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units awarded			342
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
Performance-based restricted stock units | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units awarded			1,196
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

Derivatives and hedging activ54

Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details)	Sep. 30, 2017USD ($)security
Derivatives designated as hedging instruments
Derivatives, Fair Value
Derivative, Number of Instruments Held | security	0
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives	$ 548,000
Liability Derivatives	603,000
Derivatives not designated as hedging instruments | Interest rate swap
Derivatives, Fair Value
Notional amount	$ 34,000
Number of swaps | security	1
Derivatives not designated as hedging instruments | Other Assets | Interest Rate Products
Derivatives, Fair Value
Asset Derivatives	$ 548,000
Derivatives not designated as hedging instruments | Other Liabilities | Interest Rate Products
Derivatives, Fair Value
Liability Derivatives	$ 603,000

Derivatives and hedging activ55

Derivatives and hedging activities - Effect of Derivative Instruments on the Income Statement (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Derivative Instruments, Gain (Loss)
Derivatives and hedging activities	$ (55)	$ (55)
Other non-interest income | Interest Rate Products
Derivative Instruments, Gain (Loss)
Derivatives and hedging activities	$ (55)	$ (55)

Credit-risk-related Contingent

Credit-risk-related Contingent Features (Details) - Credit-risk contract $ in Thousands	Sep. 30, 2017USD ($)
Derivative [Line Items]
Derivative Liability	$ 55
Derivative, Collateral, Obligation to Return Cash	$ 760