Peoples Financial Services (PFIS) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
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	Mar. 31, 2018
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	2,018
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Cash and due from banks:
Cash and due from banks	$ 26,699	$ 36,336
Interest-bearing deposits in other banks	76	1,152
Total cash and due from banks	26,775	37,488
Investment securities:
Available-for-sale	271,378	272,548
Equity investments carried at fair value	189
Held-to-maturity: Fair value March 31, 2018, $9,104; December 31, 2017, $9,547	9,028	9,274
Total investment securities	280,595	281,822
Loans, net	1,725,781	1,693,065
Less: allowance for loan losses	19,718	18,960
Net loans	1,706,063	1,674,105
Loans held for sale		106
Premises and equipment, net	37,511	37,557
Accrued interest receivable	6,482	6,936
Goodwill	63,370	63,370
Intangible assets, net	2,948	3,178
Other assets	66,644	64,469
Total assets	2,190,388	2,169,031
Deposits:
Noninterest-bearing	394,729	380,729
Interest-bearing	1,325,289	1,338,289
Total deposits	1,720,018	1,719,018
Short-term borrowings	142,500	123,675
Long-term debt	49,265	49,734
Accrued interest payable	518	497
Other liabilities	11,463	11,131
Total liabilities	1,923,764	1,904,055
Stockholders’ equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,396,505 shares at March 31, 2018 and at December 31, 2017	14,793	14,793
Capital surplus	135,080	135,043
Retained earnings	124,841	121,353
Accumulated other comprehensive loss	(8,090)	(6,213)
Total stockholders’ equity	266,624	264,976
Total liabilities and stockholders’ equity	$ 2,190,388	$ 2,169,031

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position
Held-to-maturity, Fair value	$ 9,104	$ 9,547
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,396,505	7,396,505
Common stock, shares outstanding	7,396,505	7,396,505

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest and fees on loans:
Taxable	$ 17,509	$ 15,541
Tax-exempt	870	726
Interest and dividends on investment securities:
Taxable	858	697
Tax-exempt	701	794
Dividends	16	12
Interest on interest-bearing deposits in other banks	40	29
Total interest income	19,994	17,799
Interest expense:
Interest on deposits	1,834	1,434
Interest on short-term borrowings	667	174
Interest on long-term debt	306	348
Total interest expense	2,807	1,956
Net interest income	17,187	15,843
Provision for loan losses	1,050	1,200
Net interest income after provision for loan losses	16,137	14,643
Noninterest income:
Service charges, fees and commissions	2,088	1,572
Merchant services income	250	1,015
Commission and fees on fiduciary activities	497	508
Wealth management income	411	319
Mortgage banking income	147	179
Life insurance investment income	187	189
Net loss on investment securities	(8)
Total noninterest income	3,572	3,782
Noninterest expense:
Salaries and employee benefits expense	6,955	6,275
Net occupancy and equipment expense	2,814	2,394
Merchant services expense	2	730
Amortization of intangible assets	230	268
Professional fees and outside services	623	529
FDIC insurance and assessments	286	127
Donations	313	272
Other expenses	1,858	1,761
Total noninterest expense	13,081	12,356
Income before income taxes	6,628	6,069
Income tax expense	774	1,269
Net income	5,854	4,800
Other comprehensive loss:
Unrealized loss on investment securities available-for-sale	(2,376)	273
Other comprehensive loss	(2,376)	273
Income tax (benefit) expense	(501)	96
Other comprehensive (loss) income, net of income taxes	(1,875)	177
Comprehensive income	$ 3,979	$ 4,977
Net income:
Basic	$ 0.79	$ 0.65
Diluted	$ 0.79	$ 0.65
Average common shares outstanding:
Basic	7,396,505	7,394,143
Diluted	7,396,505	7,394,143
Dividends declared	$ 0.32	$ 0.31

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, 2016	$ 14,788	$ 134,871	$ 111,114	$ (4,155)	$ 256,618
Stock based compensation		17			17
Net income			4,800		4,800
Other comprehensive income, net of income taxes				177	177
Dividends declared			(2,293)		(2,293)
Common stock grants awarded, net of unearned compensation of $81: 2,020 shares	4	(4)
Balance at Mar. 31, 2017	14,792	134,884	113,621	(3,978)	259,319
Balance at Dec. 31, 2017	14,793	135,043	121,353	(6,213)	264,976
Stock based compensation		37			37
Net income			5,854		5,854
Other comprehensive income, net of income taxes				(1,875)	(1,875)
Dividends declared			(2,368)		(2,368)
Balance at Mar. 31, 2018					266,624
Reclassification related to adoption of ASU 2016-01 | Accounting Standards Update 2016-01			2	(2)
Balance	$ 14,793	$ 135,080	$ 124,841	$ (8,090)	$ 266,624

Consolidated Statements of Cha6

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Stockholders' Equity
Dividends declared (in dollars per share)	$ 0.32	$ 0.31
Common stock grants awarded, shares		2,020
Unearned compensation		$ 81

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income	$ 5,854	$ 4,800
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	538	451
Amortization of deferred loan costs	234	211
Amortization of intangibles	230	268
Amortization of low income housing partnerships	116	117
Provision for loan losses	1,050	1,200
Net loss on investment securities	8
Net (gain) loss on sale of other real estate owned	(11)	(1)
Loans originated for sale	(2,608)	(5,141)
Proceeds from sale of loans originated for sale	2,729	4,734
Net gain on sale of loans originated for sale	(15)	(37)
Net amortization of investment securities	623	759
Life insurance investment income	(187)	(189)
Stock based compensation	37	17
Net change in:
Accrued interest receivable	454	624
Other assets	517	(580)
Accrued interest payable	21	(5)
Other liabilities	295	308
Net cash provided by operating activities	9,885	7,536
Proceeds from repayments of investment securities:
Available-for-sale	7,919	9,285
Held-to-maturity	242	331
Purchases of investment securities:
Available-for-sale	(9,941)	(14,999)
Net purchase of restricted equity securities	(1,669)	270
Net increase in lending activities	(33,730)	(27,349)
Purchases of premises and equipment	(492)	(2,158)
Proceeds from sale of other real estate owned	83	208
Net cash used in investing activities	(37,588)	(34,412)
Cash flows from financing activities:
Net increase in deposits	1,000	26,787
Repayment of long-term debt	(469)	(519)
Net increase (decrease) in short-term borrowings	18,825	(5,225)
Cash dividends paid	(2,366)	(2,293)
Net cash provided by (used in) financing activities	16,990	18,750
Net (decrease) increase in cash and cash equivalents	(10,713)	(8,126)
Cash and cash equivalents at beginning of period	37,488	39,941
Cash and cash equivalents at end of period	26,775	31,815
Cash paid during the period for:
Interest	2,786	1,961
Income taxes	1,800
Noncash items:
Transfers of loans to other real estate	$ 495	$ 50

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2018
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”). 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 months ended and as of March 31, 2018, 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 period ended December 31, 2017. Revenue from Contracts with Customers: The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The Company’s accounting policies will not change materially since the principles of revenue recognition from the Accounting Standards Update are largely consistent with existing guidance and current practices applied by our business. The following is a discussion of revenues within the scope of the new guidance:  Service charges, fees and commissions . Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. Our deposit services also include our ATM and debit card interchange revenue that is presented net of the associated costs. Interchange revenue is generated by our deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions.  Commission and fees on fiduciary activities. Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when we have a right to invoice and are based on either the market value of the assets managed or the services provided.  Wealth management services. Wealth management services income includes fees and commissions charged when we arrange for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided.  Other noninterest income . Other noninterest income includes, among other things, merchant services income. Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of our merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. Recent accounting standards: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts and gains/losses on the sale of other real estate owned, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption however, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. 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. ASU 2016-01 was effective for the Company on January 1, 2018 and resulted in a reclassification adjustment of $2 to accumulated other comprehensive income related to a gain on equity securities owned, as well as the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 7 – Fair Value Accounting for further information regarding the valuation of these loans. 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 lessess. 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 amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s consolidated financial statements. The Company leases certain properties under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU. At March 31, 2018, the Company had contractual future minimum lease commitments of approximately $3.1 million, before considering renewal options that are generally present. 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. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In August of 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) –Classification of Certain Cash Receipts and Cash Payments.” This Update is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted with retrospective application. The Corporation adopted ASU 2016-15 on January 1, 2018 and did not have a significant impact on its statement of cash flows. 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. Adoption of this update is not expected to have a material effect on the Company’s financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers will present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption was permitted. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The Corporation adopted ASU 2017-07 on January 1, 2018, and did not have a significant impact on the Company’s financial statements.

Other comprehensive loss

Other comprehensive loss	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 is as follows: March 31, 2018 December 31, 2017 Net unrealized loss on investment securities available-for-sale $ (3,613) $ (1,237) Income tax (759) (260) Net of income taxes (2,854) (977) Benefit plan adjustments (6,628) (6,628) Income tax (1,392) (1,392) Net of income taxes (5,236) (5,236) Accumulated other comprehensive loss $ (8,090) $ (6,213) Other comprehensive income (loss) and related tax effects for the three months ended March 31, 2018 and 2017 is as follows: Three Months Ended March 31, 2018 2017 Unrealized (loss) gain on investment securities available-for-sale $ (2,376) $ 273 Net gain on the sale of investment securities available-for-sale(1) Other comprehensive (loss) gain before taxes (2,376) 273 Income tax (501) 96 Other comprehensive (loss) gain before taxes $ (1,875) $ 177 (1)

Earnings per share

Earnings per share	3 Months Ended
	Mar. 31, 2018
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 month periods ended March 31, 2018 and 2017. 2018 2017 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net Income $ 5,854 $ 5,854 $ 4,800 $ 4,800 Average common shares outstanding 7,396,505 7,396,505 7,394,143 7,394,143 Earnings per share $ 0.79 $ 0.79 $ 0.65 $ 0.65

Investment securities

Investment securities	3 Months Ended
	Mar. 31, 2018
Investment securities
Investment securities	4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at March 31, 2018 and December 31, 2017 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair March 31, 2018 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 25,927 $ 7 $ 458 $ 25,476 U.S. Government-sponsored enterprises 95,268 6 2,777 92,497 State and municipals: Taxable 14,525 383 14,908 Tax-exempt 97,705 864 875 97,694 Residential Mortgage-backed securities: U.S. Government agencies 13,135 1 106 13,030 U.S. Government-sponsored enterprises 22,127 3 397 21,733 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,303 263 6,040 Total $ 274,990 $ 1,264 $ 4,876 $ 271,378 Held-to-maturity: Tax-exempt state and municipals $ 6,858 $ 24 $ 57 $ 6,825 Residential Mortgage-backed securities: U.S. Government agencies 51 51 U.S. Government-sponsored enterprises 2,119 114 5 2,228 Total $ 9,028 $ 138 $ 62 $ 9,104 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 20,042 $ 228 $ 19,814 U.S. Government-sponsored enterprises 95,358 $ 30 1,740 93,648 State and municipals: Taxable 14,559 488 15,047 Tax-exempt 103,199 1,136 502 103,833 Residential Mortgage-backed securities: U.S. Government agencies 14,517 2 85 14,434 U.S. Government-sponsored enterprises 19,752 10 231 19,531 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,315 120 6,195 Equity securities Common 43 3 46 Total $ 273,785 $ 1,669 $ 2,906 $ 272,548 Held-to-maturity: Tax-exempt state and municipals $ 6,859 $ 152 $ 13 $ 6,998 Residential Mortgage-backed securities: U.S. Government agencies 54 54 U.S. Government-sponsored enterprises 2,361 138 4 2,495 Total $ 9,274 $ 290 $ 17 $ 9,547 Equity Securities Our equity securities portfolio consists of stock of two other financial institutions. At March 31, 2018 and December 31, 2017, we had $189 thousand and $46 thousand, respectively, in equity securities recorded at fair value. Prior to January 1, 2018, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. At December 31, 2017, net unrealized gains of $3 thousand had been recognized in AOCI. On January 1, 2018, these unrealized gains and losses were reclassified out of AOCI and into retained earnings with subsequent changes in fair value being recognized in net income. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2018 (in thousands): Three months ended March 31, 2018 March 31, 2018 Net gains and (losses) recognized during the period on equity securities $ (8) Less: Net gains and (losses) recognized during the period on equity securities sold during the period Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ (8) Restricted Investment In Stock Restricted investment in stock includes Federal Home Loan Bank of Pittsburgh (FHLB) with a carrying cost of $10,189, Atlantic Community Bankers Bank (ACBB) stock with a carrying cost of $42 and VISA Class B stock with a carry cost of $0 at March 31, 2018. FHLB and ACBB stock was issued to the Bank as a requirement to facilitate the Bank’s participation in borrowing and other banking services. The Bank’s investment in FHLB stock may fluctuate, as it is based on the member banks’ use of FHLB’s services. The Bank owns 44,982 shares of Visa Class B stock, which was necessary to participate in Visa services in support of the Bank’s credit card, debit card, and related payment programs (permissible activities under banking regulations) as a member institution. Following the resolution of Visa’s covered litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares using a conversion factor (1.6483 as of March 31, 2018), which is periodically adjusted to reflect VISA’s ongoing litigation costs. There is a very limited market for this stock, as only current owners of Class B shares are permitted to transact in Class B. Due to the lack of orderly trades and public information of such trades, Visa Class B’s is difficult to value. These restricted investments are carried at cost and evaluated for OTTI periodically. As of March 31, 2018, there was no OTTI associated with these shares. The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at March 31, 2018, is summarized as follows: Fair March 31, 2018 Value Within one year $ 17,927 After one but within five years 164,920 After five but within ten years 32,389 After ten years 15,339 230,575 Mortgage-backed securities 40,803 Total $ 271,378 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at March 31, 2018, is summarized as follows: Amortized Fair March 31, 2018 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,858 $ 6,825 6,858 6,825 Mortgage-backed securities 2,170 2,279 Total $ 9,028 $ 9,104 Securities with a carrying value of $156,522 and $163,936 at March 31, 2018 and December 31, 2017, 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 March 31, 2018 and December 31, 2017, 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 March 31, 2018 and December 31, 2017, 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 March 31, 2018 Value Losses Value Losses Value Losses U.S. Treasury securities $ 19,143 $ 366 $ 2,429 $ 92 $ 21,572 $ 458 U.S. Government-sponsored enterprises 39,607 950 50,763 1,827 90,370 2,777 State and municipals: Tax-exempt 61,928 844 4,109 88 66,037 932 Residential Mortgage-backed securities: U.S. Government agencies 9,190 54 3,592 52 12,782 106 U.S. Government-sponsored enterprises 15,644 257 5,429 145 21,073 402 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,303 263 6,303 263 Total $ 151,815 $ 2,734 $ 66,322 $ 2,204 $ 218,137 $ 4,938 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Losses Value Losses Value Losses U.S. Treasury securities $ 17,350 $ 170 $ 2,464 $ 58 $ 19,814 $ 228 U.S. Government-sponsored enterprises 39,096 445 51,365 1,295 90,461 1,740 State and municipals: Tax-exempt 54,788 454 3,808 61 58,596 515 Residential Mortgage-backed securities: U.S. Government agencies 9,484 39 3,968 46 13,452 85 U.S. Government-sponsored enterprises 12,537 103 6,504 132 19,041 235 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,195 120 6,195 120 Total $ 139,450 $ 1,331 $ 68,109 $ 1,592 $ 207,559 $ 2,923 The Company had 198 investment securities, consisting of 114 tax-exempt state and municipal obligations, eight U.S. Treasury securities, 36 U.S. Government-sponsored enterprise securities, and 40 mortgage-backed securities that were in unrealized loss positions at March 31, 2018. Of these securities, one U.S. Treasury security, 20 U.S. Government-sponsored enterprise securities, eight tax-exempt state and municipal obligations, and 16 mortgage-backed 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 March 31, 2018. There was no OTTI recognized for the three months ended March 31, 2018 and 2017.

Loans, net and allowance for lo

Loans, net and allowance for loan losses	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 are summarized as follows. Net deferred loan costs were $719 and $575 at March 31, 2018 and December 31, 2017. March 31, 2018 December 31, 2017 Commercial $ 467,404 $ 476,199 Real estate: Commercial 833,497 786,210 Residential 289,367 287,935 Consumer 135,513 142,721 Total $ 1,725,781 $ 1,693,065 The changes in the allowance for loan losses account by major classification of loan for the three months ended March 31, 2018 and 2017 are summarized as follows: Real estate March 31, 2018 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2018 $ 5,052 $ 7,548 $ 4,980 $ 1,380 $ $ 18,960 Charge-offs (299) (127) (426) Recoveries 57 27 10 40 134 Provisions 297 524 148 81 1,050 Ending balance $ 5,406 $ 8,099 $ 4,839 $ 1,374 $ $ 19,718 Real estate March 31, 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 (125) (15) (171) (311) Recoveries 7 33 22 57 119 Provisions 323 536 264 77 1,200 Ending balance $ 4,129 $ 6,291 $ 4,978 $ 1,571 $ $ 16,969 The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2018 and December 31, 2017 is summarized as follows: Real estate March 31, 2018 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 5,406 $ 8,099 $ 4,839 $ 1,374 $ $ 19,718 Ending balance: individually evaluated for impairment 145 1,411 182 17 1,755 Ending balance: collectively evaluated for impairment 5,261 6,688 4,657 1,357 17,963 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 467,404 $ 833,497 $ 289,367 $ 135,513 $ $ 1,725,781 Ending balance: individually evaluated for impairment 2,023 4,784 3,751 169 10,727 Ending balance: collectively evaluated for impairment 465,060 828,125 285,587 135,344 1,714,116 Ending balance: loans acquired with deteriorated credit quality $ 321 $ 588 $ 29 $ $ $ 938 Real estate December 31, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 5,052 $ 7,548 $ 4,980 $ 1,380 $ $ 18,960 Ending balance: individually evaluated for impairment 159 263 336 8 766 Ending balance: collectively evaluated for impairment 4,893 7,285 4,644 1,372 18,194 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 476,199 $ 786,210 $ 287,935 $ 142,721 $ $ 1,693,065 Ending balance: individually evaluated for impairment 2,121 3,644 3,763 177 9,705 Ending balance: collectively evaluated for impairment 473,736 781,921 284,142 142,544 1,682,343 Ending balance: loans acquired with deteriorated credit quality $ 342 $ 645 $ 30 $ $ $ 1,017 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 March 31, 2018 and December 31, 2017: Special March 31, 2018 Pass Mention Substandard Doubtful Total Commercial $ 462,244 $ 1,192 $ 3,968 $ $ 467,404 Real estate: Commercial 804,815 17,130 11,552 833,497 Residential 284,005 17 5,345 289,367 Consumer 135,313 200 135,513 Total $ 1,686,377 $ 18,339 $ 21,065 $ $ 1,725,781 Special December 31, 2017 Pass Mention Substandard Doubtful Total Commercial $ 472,185 $ 1,958 $ 2,056 $ $ 476,199 Real estate: Commercial 764,320 13,015 8,875 786,210 Residential 282,484 18 5,433 287,935 Consumer 142,507 214 142,721 Total $ 1,661,496 $ 14,991 $ 16,578 $ $ 1,693,065 Information concerning nonaccrual loans by major loan classification at March 31, 2018 and December 31, 2017 is summarized as follows: March 31, 2018 December 31, 2017 Commercial $ 770 $ 860 Real estate: Commercial 4,719 3,821 Residential 3,020 2,994 Consumer 169 177 Total $ 8,678 $ 7,852 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 March 31, 2018 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 99 $ 18 $ 774 $ 891 $ 466,513 $ 467,404 $ Real estate: Commercial 4,608 416 4,719 9,743 823,754 833,497 Residential 1,305 780 3,345 5,430 283,937 289,367 325 Consumer 545 342 275 1,162 134,351 135,513 107 Total $ 6,557 $ 1,556 $ 9,113 $ 17,226 $ 1,708,555 $ 1,725,781 $ 435 The Company classifies all nonaccrual loans in the greater than 90 days category. Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2017 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 124 $ 216 $ 860 $ 1,200 $ 474,999 $ 476,199 Real estate: Commercial 1,722 194 3,821 5,737 780,473 786,210 Residential 1,134 1,551 3,543 6,228 281,707 287,935 $ 549 Consumer 1,101 364 363 1,828 140,893 142,721 186 Total $ 4,081 $ 2,325 $ 8,587 $ 14,993 $ 1,678,072 $ 1,693,065 $ 735 The following tables summarize information concerning impaired loans as of and for the three months ended March 31, 2018 and March 31, 2017, and as of and for the year ended, December 31, 2017 by major loan classification: For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,211 $ 1,375 $ 1,246 $ 17 Real estate: Commercial 2,970 3,312 2,929 6 Residential 2,289 2,762 2,243 4 Consumer 151 159 160 Total 6,621 7,608 6,578 27 With an allowance recorded: Commercial 1,133 1,158 144 1,159 8 Real estate: Commercial 2,402 2,520 1,411 1,902 6 Residential 1,491 1,977 182 1,544 4 Consumer 18 18 18 13 Total 5,044 5,673 1,755 4,618 18 Commercial 2,344 2,533 144 2,405 25 Real estate: Commercial 5,372 5,832 1,411 4,831 12 Residential 3,780 4,739 182 3,787 8 Consumer 169 177 18 173 Total $ 11,665 $ 13,281 $ 1,755 $ 11,196 $ 45 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2017 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,279 $ 1,439 $ 1,668 $ 43 Real estate: Commercial 2,888 3,190 2,985 24 Residential 2,196 2,672 2,227 21 Consumer 169 181 173 Total 6,532 7,482 7,053 88 With an allowance recorded: Commercial 1,184 1,218 159 991 50 Real estate: Commercial 1,401 1,496 263 2,202 18 Residential 1,597 1,759 336 1,335 23 Consumer 8 8 8 20 Total 4,190 4,481 766 4,548 91 Commercial 2,463 2,657 159 2,659 93 Real estate: Commercial 4,289 4,686 263 5,187 42 Residential 3,793 4,431 336 3,562 44 Consumer 177 189 8 193 Total $ 10,722 $ 11,963 $ 766 $ 11,601 $ 179 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2017 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 765 $ 1,386 $ 1,585 $ Real estate: Commercial 3,715 4,368 3,039 Residential 2,349 2,533 2,277 Consumer 184 184 170 Total 7,013 8,471 7,071 12 With an allowance recorded: Commercial 1,923 1,923 $ 404 1,103 13 Real estate: Commercial 1,471 1,471 513 3,132 6 Residential 1,044 1,044 484 1,210 4 Consumer 23 23 23 12 Total 4,461 4,461 1,424 5,457 23 Commercial 2,688 3,309 404 2,688 17 Real estate: Commercial 5,186 5,839 513 6,171 10 Residential 3,393 3,577 484 3,487 8 Consumer 207 207 23 182 Total $ 11,474 $ 12,932 $ 1,424 $ 12,528 $ 35 Included in the commercial loan and commercial and residential real estate categories are troubled debt restructurings that are classified as impaired. Troubled debt restructurings totaled $3,032 at March 31, 2018, $3,074 at December 31, 2017 and $2,226 at March 31, 2017. 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 no loans modified as a troubled debt restructuring for the three months ended March 31, 2018. There was one loan modified as a troubled debt restructuring for the three months ended March 31, 2017, in the amount of $345. During the three months ended March 31, 2018, there was one payment default on a restructured residential mortgage loan with an outstanding balance of $64; there were no payment defaults on restructured loans during the three months ended March 31, 2017.

Other assets

Other assets	3 Months Ended
	Mar. 31, 2018
Other assets
Other assets	6. Other assets: The components of other assets at March 31, 2018, and December 31, 2017 are summarized as follows: March 31, 2018 December 31, 2017 Other real estate owned $ 685 $ 284 Investment in low income housing partnership 7,726 7,842 Mortgage servicing rights 719 728 Bank owned life insurance 34,023 33,836 Restricted equity securities 10,231 8,562 Net deferred tax asset 4,405 3,906 Other assets 8,855 9,311 Total $ 66,644 $ 64,469

Fair value estimates

Fair value estimates	3 Months Ended
	Mar. 31, 2018
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: 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. 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. Assets and liabilities measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2018 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 25,476 $ 25,476 $ U.S. Government-sponsored enterprises 92,497 $ 92,497 State and Municipals: Taxable 14,908 14,908 Tax-exempt 97,694 97,694 Mortgage-backed securities: U.S. Government agencies 13,030 13,030 U.S. Government-sponsored enterprises 27,773 27,773 Common equity securities 189 189 Interest rate swap-other assets 148 148 Interest rate swap-other liabilities (161) (161) Total $ 271,554 $ 25,665 $ 245,889 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2017 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 19,814 $ 19,814 $ U.S. Government-sponsored enterprises 93,648 $ 93,648 State and Municipals: Taxable 15,047 15,047 Tax-exempt 103,833 103,833 Mortgage-backed securities: U.S. Government agencies 14,434 14,434 U.S. Government-sponsored enterprises 25,726 25,726 Common equity securities 46 46 Interest rate swap-other assets 655 655 Interest rate swap-other liabilities (733) (733) Total $ 272,470 $ 19,860 $ 252,610 $ Assets and liabilities measured at fair value on a nonrecurring basis at March 31, 2018 and December 31, 2017 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2018 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,289 $ 3,289 Other real estate owned $ 673 $ 673 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2017 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,424 $ 3,424 Other real estate owned $ 216 $ 216 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 March 31, 2018 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,289 Appraisal of collateral Appraisal adjustments 7.7% to 97.0% (58.5)% Liquidation expenses 3.0% to 6.0% (4.7)% Other real estate owned $ 673 Appraisal of collateral Appraisal adjustments 20.0% to 55.9% (30.7)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2017 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,424 Appraisal of collateral Appraisal adjustments 4.0% to 97.0% (67.2)% Liquidation expenses 3.0% to 6.0% (4.9)% Other real estate owned $ 216 Appraisal of collateral Appraisal adjustments 25.0% to 41.3% (30.7)% 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 March 31, 2018 and December 31, 2017 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 March 31, 2018 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 26,775 $ 26,775 $ 26,775 Investment securities: Available-for-sale 271,378 271,378 25,476 $ 245,902 Common equity securities 189 189 189 Held-to-maturity 9,028 9,104 9,104 Net loans 1,706,063 1,666,717 $ 1,666,717 Accrued interest receivable 6,482 6,482 6,482 Mortgage servicing rights 719 1,618 1,618 Restricted equity securities 10,231 10,231 10,231 Interest rate swaps 148 148 148 Total $ 2,031,013 $ 1,992,642 Financial liabilities: Deposits $ 1,720,018 $ 1,715,633 $ 1,715,633 Short-term borrowings 142,500 142,500 142,500 Long-term debt 49,265 49,482 49,482 Accrued interest payable 518 518 518 Interest rate swaps 161 161 161 Total $ 1,912,462 $ 1,908,294 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2017 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 37,488 $ 37,488 $ 37,488 Investment securities: Available-for-sale 272,548 272,548 19,860 $ 252,688 Held-to-maturity 9,274 9,547 9,547 Loans held for sale 106 106 106 Net loans 1,674,105 1,645,292 $ 1,645,292 Accrued interest receivable 6,936 6,936 6,936 Mortgage servicing rights 728 1,638 1,638 Restricted equity securities 8,562 8,562 8,562 Other assets 2,249 2,249 Interest rate swaps 655 655 655 Total $ 2,010,402 $ 1,985,021 Financial liabilities: Deposits $ 1,719,018 $ 1,666,284 $ 1,666,284 Short-term borrowings 123,675 123,675 123,675 Long-term debt 49,734 50,147 50,147 Accrued interest payable 497 497 497 Interest rate swaps 733 733 733 Total $ 1,893,657 $ 1,841,336

Employee benefit plans

Employee benefit plans	3 Months Ended
	Mar. 31, 2018
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 Supplemental Executive Retirement Plan’s (“SERP’s”) and an Employees’ Pension Plan, which is currently frozen. For the three months ended March 31, salaries and employee benefits expense includes approximately $340 in 2018 and $296 in 2017 relating to the employee benefit plans. The 2008 long-term incentive plan (“2008 Plan”) allowed for eligible participants to be granted equity awards. The 2008 Plan was a legacy plan of Penseco Financial Services Corporation and no awards may be made under the 2008 Plan after January 15, 2018. Under the 2008 Plan the Compensation Committee of the Board of Directors had 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 2017 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries. As of March 31, 2018, there were 98,462 shares of the Company’s common stock available for grant as awards pursuant to the 2017 Plan. The 2008 Plan expired in January 2018 but will remain in effect in accordance with its terms to govern outstanding awards under that plan. If any outstanding awards under the 2017 Plan are forfeited by the holder or canceled by the Company, the underlying shares would be available for regrant to others. The 2017 Plan authorizes grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. The Company did not make any awards under the 2017 Plan in the first quarter of 2018. 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. 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 $32 and $17 for the three months ended March 31, 2018 and 2017, respectively for awards granted under the 2008 Plan and $5 for the three months ended March 31, 2018 for awards granted under the 2017 Plan and did not recognize any compensation expense for the three months ended March 31, 2017 for awards granted under the 2017 Plan. As of March 31, 2018, the Company had $250 of unrecognized compensation expense associated with restricted stock awards. The remaining cost is expected to be recognized over a weighted average vesting period of 1.8 years.

Derivatives and hedging activit

Derivatives and hedging activities	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 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 $ 148 Other Assets $ 655 Other Liabilities $ 161 Other Liabilities $ 733 Total derivatives not designated as hedging instruments $ 148 $ $ 161 $ 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 March 31, 2018, the Company had 5 interest rate swaps with an aggregate notional amount of $58,777 related to this program compared to $55,928 at December 31, 2017. 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 months ended March 31, 2018. Amount of Gain or Location of Gain or (Loss) (Loss) Recognized in Recognized in Income on Income on Derivative Derivatives Not Designated as Hedging Instruments Derivative March 31, 2018 Interest Rate Products Other non-interest income $ 66 Total $ 66 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 March 31, 2018 and December 31, 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 $12 and $79 respectively. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has no posted collateral against its obligations under these agreements as of March 31, 2018, compared to collateral of $880 at December 31, 2017. If the Company had breached any of these provisions it could have been required to settle its obligations under the agreements at the termination value.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2018
Income taxes
Income taxes	10. Income taxes As a result of the Tax Cut and Jobs Act, signed into law on December 22, 2017, the statutory tax rate for the Company was lowered to 21% from 35% effective January 1, 2018. This lowered the effective tax rate of the Company to 11.7% for the quarter ended March 31, 2018 from 20.9% for the corresponding year ago period.

Summary of significant accoun18

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2018
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”). 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 months ended and as of March 31, 2018, 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 period ended December 31, 2017.
Revenue from Contracts with Customers	Revenue from Contracts with Customers: The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The Company’s accounting policies will not change materially since the principles of revenue recognition from the Accounting Standards Update are largely consistent with existing guidance and current practices applied by our business. The following is a discussion of revenues within the scope of the new guidance:  Service charges, fees and commissions . Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. Our deposit services also include our ATM and debit card interchange revenue that is presented net of the associated costs. Interchange revenue is generated by our deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions.  Commission and fees on fiduciary activities. Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when we have a right to invoice and are based on either the market value of the assets managed or the services provided.  Wealth management services. Wealth management services income includes fees and commissions charged when we arrange for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided.  Other noninterest income . Other noninterest income includes, among other things, merchant services income. Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of our merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin.
Recent accounting standards	Recent accounting standards: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures as the Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts and gains/losses on the sale of other real estate owned, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption however, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. 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. ASU 2016-01 was effective for the Company on January 1, 2018 and resulted in a reclassification adjustment of $2 to accumulated other comprehensive income related to a gain on equity securities owned, as well as the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 7 – Fair Value Accounting for further information regarding the valuation of these loans. 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 lessess. 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 amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s consolidated financial statements. The Company leases certain properties under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU. At March 31, 2018, the Company had contractual future minimum lease commitments of approximately $3.1 million, before considering renewal options that are generally present. 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. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In August of 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) –Classification of Certain Cash Receipts and Cash Payments.” This Update is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. ASU 2016-15 is effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted with retrospective application. The Corporation adopted ASU 2016-15 on January 1, 2018 and did not have a significant impact on its statement of cash flows. 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. Adoption of this update is not expected to have a material effect on the Company’s financial statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers will present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption was permitted. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The Corporation adopted ASU 2017-07 on January 1, 2018, and did not have a significant impact on the Company’s financial statements.

Other comprehensive loss (Table

Other comprehensive loss (Tables)	3 Months Ended
	Mar. 31, 2018
Other comprehensive loss
Schedule of components of accumulated other comprehensive loss	March 31, 2018 December 31, 2017 Net unrealized loss on investment securities available-for-sale $ (3,613) $ (1,237) Income tax (759) (260) Net of income taxes (2,854) (977) Benefit plan adjustments (6,628) (6,628) Income tax (1,392) (1,392) Net of income taxes (5,236) (5,236) Accumulated other comprehensive loss $ (8,090) $ (6,213)
Schedule of other comprehensive income (loss) and related tax effects	Three Months Ended March 31, 2018 2017 Unrealized (loss) gain on investment securities available-for-sale $ (2,376) $ 273 Net gain on the sale of investment securities available-for-sale(1) Other comprehensive (loss) gain before taxes (2,376) 273 Income tax (501) 96 Other comprehensive (loss) gain before taxes $ (1,875) $ 177 (1)

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings per share
Schedule of earnings per share	2018 2017 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net Income $ 5,854 $ 5,854 $ 4,800 $ 4,800 Average common shares outstanding 7,396,505 7,396,505 7,394,143 7,394,143 Earnings per share $ 0.79 $ 0.79 $ 0.65 $ 0.65

Investment securities (Tables)

Investment securities (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule of amortized cost and fair value of investment securities aggregated by investment category	Gross Gross Amortized Unrealized Unrealized Fair March 31, 2018 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 25,927 $ 7 $ 458 $ 25,476 U.S. Government-sponsored enterprises 95,268 6 2,777 92,497 State and municipals: Taxable 14,525 383 14,908 Tax-exempt 97,705 864 875 97,694 Residential Mortgage-backed securities: U.S. Government agencies 13,135 1 106 13,030 U.S. Government-sponsored enterprises 22,127 3 397 21,733 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,303 263 6,040 Total $ 274,990 $ 1,264 $ 4,876 $ 271,378 Held-to-maturity: Tax-exempt state and municipals $ 6,858 $ 24 $ 57 $ 6,825 Residential Mortgage-backed securities: U.S. Government agencies 51 51 U.S. Government-sponsored enterprises 2,119 114 5 2,228 Total $ 9,028 $ 138 $ 62 $ 9,104 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 20,042 $ 228 $ 19,814 U.S. Government-sponsored enterprises 95,358 $ 30 1,740 93,648 State and municipals: Taxable 14,559 488 15,047 Tax-exempt 103,199 1,136 502 103,833 Residential Mortgage-backed securities: U.S. Government agencies 14,517 2 85 14,434 U.S. Government-sponsored enterprises 19,752 10 231 19,531 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,315 120 6,195 Equity securities Common 43 3 46 Total $ 273,785 $ 1,669 $ 2,906 $ 272,548 Held-to-maturity: Tax-exempt state and municipals $ 6,859 $ 152 $ 13 $ 6,998 Residential Mortgage-backed securities: U.S. Government agencies 54 54 U.S. Government-sponsored enterprises 2,361 138 4 2,495 Total $ 9,274 $ 290 $ 17 $ 9,547
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 March 31, 2018 Value Losses Value Losses Value Losses U.S. Treasury securities $ 19,143 $ 366 $ 2,429 $ 92 $ 21,572 $ 458 U.S. Government-sponsored enterprises 39,607 950 50,763 1,827 90,370 2,777 State and municipals: Tax-exempt 61,928 844 4,109 88 66,037 932 Residential Mortgage-backed securities: U.S. Government agencies 9,190 54 3,592 52 12,782 106 U.S. Government-sponsored enterprises 15,644 257 5,429 145 21,073 402 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,303 263 6,303 263 Total $ 151,815 $ 2,734 $ 66,322 $ 2,204 $ 218,137 $ 4,938 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Losses Value Losses Value Losses U.S. Treasury securities $ 17,350 $ 170 $ 2,464 $ 58 $ 19,814 $ 228 U.S. Government-sponsored enterprises 39,096 445 51,365 1,295 90,461 1,740 State and municipals: Tax-exempt 54,788 454 3,808 61 58,596 515 Residential Mortgage-backed securities: U.S. Government agencies 9,484 39 3,968 46 13,452 85 U.S. Government-sponsored enterprises 12,537 103 6,504 132 19,041 235 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,195 120 6,195 120 Total $ 139,450 $ 1,331 $ 68,109 $ 1,592 $ 207,559 $ 2,923
Summary of unrealized and realized gains and losses	The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2018 (in thousands): Three months ended March 31, 2018 March 31, 2018 Net gains and (losses) recognized during the period on equity securities $ (8) Less: Net gains and (losses) recognized during the period on equity securities sold during the period Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date $ (8)
Available-for-Sale Securities.
Schedule of maturity distribution of fair value	Fair March 31, 2018 Value Within one year $ 17,927 After one but within five years 164,920 After five but within ten years 32,389 After ten years 15,339 230,575 Mortgage-backed securities 40,803 Total $ 271,378
Held-to-maturity Securities.
Schedule of maturity distribution of fair value	Amortized Fair March 31, 2018 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,858 $ 6,825 6,858 6,825 Mortgage-backed securities 2,170 2,279 Total $ 9,028 $ 9,104

Loans, net and allowance for 22

Loans, net and allowance for loan losses (Tables)	3 Months Ended
	Mar. 31, 2018
Loans, net and allowance for loan losses
Schedule of major classifications of loans outstanding	March 31, 2018 December 31, 2017 Commercial $ 467,404 $ 476,199 Real estate: Commercial 833,497 786,210 Residential 289,367 287,935 Consumer 135,513 142,721 Total $ 1,725,781 $ 1,693,065
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 months ended March 31, 2018 and 2017 are summarized as follows: Real estate March 31, 2018 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2018 $ 5,052 $ 7,548 $ 4,980 $ 1,380 $ $ 18,960 Charge-offs (299) (127) (426) Recoveries 57 27 10 40 134 Provisions 297 524 148 81 1,050 Ending balance $ 5,406 $ 8,099 $ 4,839 $ 1,374 $ $ 19,718 Real estate March 31, 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 (125) (15) (171) (311) Recoveries 7 33 22 57 119 Provisions 323 536 264 77 1,200 Ending balance $ 4,129 $ 6,291 $ 4,978 $ 1,571 $ $ 16,969 The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2018 and December 31, 2017 is summarized as follows: Real estate March 31, 2018 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 5,406 $ 8,099 $ 4,839 $ 1,374 $ $ 19,718 Ending balance: individually evaluated for impairment 145 1,411 182 17 1,755 Ending balance: collectively evaluated for impairment 5,261 6,688 4,657 1,357 17,963 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 467,404 $ 833,497 $ 289,367 $ 135,513 $ $ 1,725,781 Ending balance: individually evaluated for impairment 2,023 4,784 3,751 169 10,727 Ending balance: collectively evaluated for impairment 465,060 828,125 285,587 135,344 1,714,116 Ending balance: loans acquired with deteriorated credit quality $ 321 $ 588 $ 29 $ $ $ 938 Real estate December 31, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 5,052 $ 7,548 $ 4,980 $ 1,380 $ $ 18,960 Ending balance: individually evaluated for impairment 159 263 336 8 766 Ending balance: collectively evaluated for impairment 4,893 7,285 4,644 1,372 18,194 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 476,199 $ 786,210 $ 287,935 $ 142,721 $ $ 1,693,065 Ending balance: individually evaluated for impairment 2,121 3,644 3,763 177 9,705 Ending balance: collectively evaluated for impairment 473,736 781,921 284,142 142,544 1,682,343 Ending balance: loans acquired with deteriorated credit quality $ 342 $ 645 $ 30 $ $ $ 1,017
Schedule of major classification of loans portfolio summarized by credit quality	Special March 31, 2018 Pass Mention Substandard Doubtful Total Commercial $ 462,244 $ 1,192 $ 3,968 $ $ 467,404 Real estate: Commercial 804,815 17,130 11,552 833,497 Residential 284,005 17 5,345 289,367 Consumer 135,313 200 135,513 Total $ 1,686,377 $ 18,339 $ 21,065 $ $ 1,725,781 Special December 31, 2017 Pass Mention Substandard Doubtful Total Commercial $ 472,185 $ 1,958 $ 2,056 $ $ 476,199 Real estate: Commercial 764,320 13,015 8,875 786,210 Residential 282,484 18 5,433 287,935 Consumer 142,507 214 142,721 Total $ 1,661,496 $ 14,991 $ 16,578 $ $ 1,693,065
Schedule of information concerning nonaccrual loans by major loan classification	March 31, 2018 December 31, 2017 Commercial $ 770 $ 860 Real estate: Commercial 4,719 3,821 Residential 3,020 2,994 Consumer 169 177 Total $ 8,678 $ 7,852
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 March 31, 2018 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 99 $ 18 $ 774 $ 891 $ 466,513 $ 467,404 $ Real estate: Commercial 4,608 416 4,719 9,743 823,754 833,497 Residential 1,305 780 3,345 5,430 283,937 289,367 325 Consumer 545 342 275 1,162 134,351 135,513 107 Total $ 6,557 $ 1,556 $ 9,113 $ 17,226 $ 1,708,555 $ 1,725,781 $ 435 The Company classifies all nonaccrual loans in the greater than 90 days category. Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2017 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 124 $ 216 $ 860 $ 1,200 $ 474,999 $ 476,199 Real estate: Commercial 1,722 194 3,821 5,737 780,473 786,210 Residential 1,134 1,551 3,543 6,228 281,707 287,935 $ 549 Consumer 1,101 364 363 1,828 140,893 142,721 186 Total $ 4,081 $ 2,325 $ 8,587 $ 14,993 $ 1,678,072 $ 1,693,065 $ 735
Summarized information concerning impaired loans	For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,211 $ 1,375 $ 1,246 $ 17 Real estate: Commercial 2,970 3,312 2,929 6 Residential 2,289 2,762 2,243 4 Consumer 151 159 160 Total 6,621 7,608 6,578 27 With an allowance recorded: Commercial 1,133 1,158 144 1,159 8 Real estate: Commercial 2,402 2,520 1,411 1,902 6 Residential 1,491 1,977 182 1,544 4 Consumer 18 18 18 13 Total 5,044 5,673 1,755 4,618 18 Commercial 2,344 2,533 144 2,405 25 Real estate: Commercial 5,372 5,832 1,411 4,831 12 Residential 3,780 4,739 182 3,787 8 Consumer 169 177 18 173 Total $ 11,665 $ 13,281 $ 1,755 $ 11,196 $ 45 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2017 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,279 $ 1,439 $ 1,668 $ 43 Real estate: Commercial 2,888 3,190 2,985 24 Residential 2,196 2,672 2,227 21 Consumer 169 181 173 Total 6,532 7,482 7,053 88 With an allowance recorded: Commercial 1,184 1,218 159 991 50 Real estate: Commercial 1,401 1,496 263 2,202 18 Residential 1,597 1,759 336 1,335 23 Consumer 8 8 8 20 Total 4,190 4,481 766 4,548 91 Commercial 2,463 2,657 159 2,659 93 Real estate: Commercial 4,289 4,686 263 5,187 42 Residential 3,793 4,431 336 3,562 44 Consumer 177 189 8 193 Total $ 10,722 $ 11,963 $ 766 $ 11,601 $ 179 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2017 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 765 $ 1,386 $ 1,585 $ Real estate: Commercial 3,715 4,368 3,039 Residential 2,349 2,533 2,277 Consumer 184 184 170 Total 7,013 8,471 7,071 12 With an allowance recorded: Commercial 1,923 1,923 $ 404 1,103 13 Real estate: Commercial 1,471 1,471 513 3,132 6 Residential 1,044 1,044 484 1,210 4 Consumer 23 23 23 12 Total 4,461 4,461 1,424 5,457 23 Commercial 2,688 3,309 404 2,688 17 Real estate: Commercial 5,186 5,839 513 6,171 10 Residential 3,393 3,577 484 3,487 8 Consumer 207 207 23 182 Total $ 11,474 $ 12,932 $ 1,424 $ 12,528 $ 35

Other assets (Tables)

Other assets (Tables)	3 Months Ended
	Mar. 31, 2018
Other assets
Schedule of components of other assets	March 31, 2018 December 31, 2017 Other real estate owned $ 685 $ 284 Investment in low income housing partnership 7,726 7,842 Mortgage servicing rights 719 728 Bank owned life insurance 34,023 33,836 Restricted equity securities 10,231 8,562 Net deferred tax asset 4,405 3,906 Other assets 8,855 9,311 Total $ 66,644 $ 64,469

Fair value estimates (Tables)

Fair value estimates (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 25,476 $ 25,476 $ U.S. Government-sponsored enterprises 92,497 $ 92,497 State and Municipals: Taxable 14,908 14,908 Tax-exempt 97,694 97,694 Mortgage-backed securities: U.S. Government agencies 13,030 13,030 U.S. Government-sponsored enterprises 27,773 27,773 Common equity securities 189 189 Interest rate swap-other assets 148 148 Interest rate swap-other liabilities (161) (161) Total $ 271,554 $ 25,665 $ 245,889 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2017 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 19,814 $ 19,814 $ U.S. Government-sponsored enterprises 93,648 $ 93,648 State and Municipals: Taxable 15,047 15,047 Tax-exempt 103,833 103,833 Mortgage-backed securities: U.S. Government agencies 14,434 14,434 U.S. Government-sponsored enterprises 25,726 25,726 Common equity securities 46 46 Interest rate swap-other assets 655 655 Interest rate swap-other liabilities (733) (733) Total $ 272,470 $ 19,860 $ 252,610 $
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 March 31, 2018 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,289 $ 3,289 Other real estate owned $ 673 $ 673 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2017 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,424 $ 3,424 Other real estate owned $ 216 $ 216
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 March 31, 2018 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,289 Appraisal of collateral Appraisal adjustments 7.7% to 97.0% (58.5)% Liquidation expenses 3.0% to 6.0% (4.7)% Other real estate owned $ 673 Appraisal of collateral Appraisal adjustments 20.0% to 55.9% (30.7)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2017 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,424 Appraisal of collateral Appraisal adjustments 4.0% to 97.0% (67.2)% Liquidation expenses 3.0% to 6.0% (4.9)% Other real estate owned $ 216 Appraisal of collateral Appraisal adjustments 25.0% to 41.3% (30.7)% 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 March 31, 2018 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 26,775 $ 26,775 $ 26,775 Investment securities: Available-for-sale 271,378 271,378 25,476 $ 245,902 Common equity securities 189 189 189 Held-to-maturity 9,028 9,104 9,104 Net loans 1,706,063 1,666,717 $ 1,666,717 Accrued interest receivable 6,482 6,482 6,482 Mortgage servicing rights 719 1,618 1,618 Restricted equity securities 10,231 10,231 10,231 Interest rate swaps 148 148 148 Total $ 2,031,013 $ 1,992,642 Financial liabilities: Deposits $ 1,720,018 $ 1,715,633 $ 1,715,633 Short-term borrowings 142,500 142,500 142,500 Long-term debt 49,265 49,482 49,482 Accrued interest payable 518 518 518 Interest rate swaps 161 161 161 Total $ 1,912,462 $ 1,908,294 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2017 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 37,488 $ 37,488 $ 37,488 Investment securities: Available-for-sale 272,548 272,548 19,860 $ 252,688 Held-to-maturity 9,274 9,547 9,547 Loans held for sale 106 106 106 Net loans 1,674,105 1,645,292 $ 1,645,292 Accrued interest receivable 6,936 6,936 6,936 Mortgage servicing rights 728 1,638 1,638 Restricted equity securities 8,562 8,562 8,562 Other assets 2,249 2,249 Interest rate swaps 655 655 655 Total $ 2,010,402 $ 1,985,021 Financial liabilities: Deposits $ 1,719,018 $ 1,666,284 $ 1,666,284 Short-term borrowings 123,675 123,675 123,675 Long-term debt 49,734 50,147 50,147 Accrued interest payable 497 497 497 Interest rate swaps 733 733 733 Total $ 1,893,657 $ 1,841,336

Derivatives and hedging activ25

Derivatives and hedging activities (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 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 $ 148 Other Assets $ 655 Other Liabilities $ 161 Other Liabilities $ 733 Total derivatives not designated as hedging instruments $ 148 $ $ 161 $
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Gain or Location of Gain or (Loss) (Loss) Recognized in Recognized in Income on Income on Derivative Derivatives Not Designated as Hedging Instruments Derivative March 31, 2018 Interest Rate Products Other non-interest income $ 66 Total $ 66

Summary of significant accoun26

Summary of significant accounting policies - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)Office
Number of full-service community banking offices | Office	27
Future minimum lease commitments	$ 3,100
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01
Reclassification related to adoption of ASU 2016-01	$ 2

Summary of significant accoun27

Summary of significant accounting policies - Income Taxes (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Summary of significant accounting policies
Federal statutory rate	11.70%	20.90%	21.00%	35.00%

Other comprehensive loss - Comp

Other comprehensive loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Other comprehensive loss
Net unrealized loss on investment securities available-for-sale	$ (3,613)	$ (1,237)
Income tax	(759)	(260)
Net of income taxes	(2,854)	(977)
Benefit plan adjustments	(6,628)	(6,628)
Income tax	1,392	1,392
Net of income taxes	(5,236)	(5,236)
Accumulated other comprehensive loss	$ (8,090)	$ (6,213)

Other comprehensive loss - Othe

Other comprehensive loss - Other Comprehensive Loss and Related Tax Effects (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other comprehensive loss
Unrealized (loss) gain on investment securities available-for-sale	$ (2,376)	$ 273
Other comprehensive (loss) gain before taxes	(2,376)	273
Income tax	(501)	96
Other comprehensive (loss) income, net of income taxes	$ (1,875)	$ 177

Earnings per share - Shares Con

Earnings per share - Shares Considered Anti-dilutive (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 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
	Mar. 31, 2018	Mar. 31, 2017
Earnings per share
Net Income, Basic	$ 5,854	$ 4,800
Average common shares outstanding, Basic	7,396,505	7,394,143
Earnings per share, Basic	$ 0.79	$ 0.65
Net Income, Diluted	$ 5,854	$ 4,800
Average common shares outstanding, Diluted	7,396,505	7,394,143
Earnings per share, Diluted	$ 0.79	$ 0.65

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		$ 273,785
Available-for-sale, Gross Unrealized Gains		1,669
Available-for-sale, Gross Unrealized Losses		2,906
Available-for-sale, Fair Value		272,548
Available-for-sale, Amortized Cost	$ 274,990
Available-for-sale, Gross Unrealized Gains	1,264
Available-for-sale, Gross Unrealized Losses	4,876
Available-for-sale, Fair Value	271,378	272,548
Held-to-maturity, Amortized Cost	9,028	9,274
Held-to-maturity, Gross Unrealized Gains	138	290
Held-to-maturity, Gross Unrealized Losses	62	17
Held-to-maturity, Fair value	9,104	9,547
Equity investments carried at fair value	189
Mortgage-backed Securities, U.S. Government agencies
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		14,517
Available-for-sale, Gross Unrealized Gains		2
Available-for-sale, Gross Unrealized Losses		85
Available-for-sale, Fair Value		14,434
Available-for-sale, Amortized Cost	13,135
Available-for-sale, Gross Unrealized Gains	1
Available-for-sale, Gross Unrealized Losses	106
Available-for-sale, Fair Value	13,030
Held-to-maturity, Amortized Cost	51	54
Held-to-maturity, Fair value	51	54
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		19,752
Available-for-sale, Gross Unrealized Gains		10
Available-for-sale, Gross Unrealized Losses		231
Available-for-sale, Fair Value		19,531
Available-for-sale, Amortized Cost	22,127
Available-for-sale, Gross Unrealized Gains	3
Available-for-sale, Gross Unrealized Losses	397
Available-for-sale, Fair Value	21,733
Held-to-maturity, Amortized Cost	2,119	2,361
Held-to-maturity, Gross Unrealized Gains	114	138
Held-to-maturity, Gross Unrealized Losses	5	4
Held-to-maturity, Fair value	2,228	2,495
Commercial mortgage-backed Securities, U.S. Government-sponsored enterprises
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		6,315
Available-for-sale, Gross Unrealized Losses		120
Available-for-sale, Fair Value		6,195
Available-for-sale, Amortized Cost	6,303
Available-for-sale, Gross Unrealized Losses	263
Available-for-sale, Fair Value	6,040
U.S. Government-sponsored enterprises state and municipals
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		95,358
Available-for-sale, Gross Unrealized Gains		30
Available-for-sale, Gross Unrealized Losses		1,740
Available-for-sale, Fair Value		93,648
Available-for-sale, Amortized Cost	95,268
Available-for-sale, Gross Unrealized Gains	6
Available-for-sale, Gross Unrealized Losses	2,777
Available-for-sale, Fair Value	92,497
U.S. Treasuries
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		20,042
Available-for-sale, Gross Unrealized Losses		228
Available-for-sale, Fair Value		19,814
Available-for-sale, Amortized Cost	25,927
Available-for-sale, Gross Unrealized Gains	7
Available-for-sale, Gross Unrealized Losses	458
Available-for-sale, Fair Value	25,476
Common equity securities.
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		43
Available-for-sale, Gross Unrealized Gains		3
Available-for-sale, Fair Value		46
Equity investments carried at fair value	189
State and Municipals, Taxable
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		14,559
Available-for-sale, Gross Unrealized Gains		488
Available-for-sale, Fair Value		15,047
Available-for-sale, Amortized Cost	14,525
Available-for-sale, Gross Unrealized Gains	383
Available-for-sale, Fair Value	14,908
State and Municipals, Tax-exempt
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost		103,199
Available-for-sale, Gross Unrealized Gains		1,136
Available-for-sale, Gross Unrealized Losses		502
Available-for-sale, Fair Value		103,833
Available-for-sale, Amortized Cost	97,705
Available-for-sale, Gross Unrealized Gains	864
Available-for-sale, Gross Unrealized Losses	875
Available-for-sale, Fair Value	97,694
Held-to-maturity, Amortized Cost	6,858	6,859
Held-to-maturity, Gross Unrealized Gains	24	152
Held-to-maturity, Gross Unrealized Losses	57	13
Held-to-maturity, Fair value	$ 6,825	$ 6,998

Investment securities - Unreali

Investment securities - Unrealized and realized gains and losses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Investment securities
Net gains and (losses) recognized during the period on equity securities	$ (8)
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date	$ (8)

Investment securities - Restric

Investment securities - Restricted Investment In Stock (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)shares	Dec. 31, 2017USD ($)
Other-than-temporary impairments recognized	$ 0
Value of common stock	$ 14,793	$ 14,793
Visa Class A stock
Conversion ratio of common stock	1.6483
Visa Class B stock
Shares held | shares	44,982
Value of common stock	$ 0
Federal Home Loan Bank of Pittsburgh (FHLB)
Value of common stock	10,189
Atlantic Community Bankers Bank (ACBB)
Value of common stock	$ 42

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) $ in Thousands	Mar. 31, 2018USD ($)
Investment securities
Within one year	$ 17,927
After one but within five years	164,920
After five but within ten years	32,389
After ten years	15,339
Available for sale securities	230,575
Mortgage-backed securities	$ 40,803

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After ten years, Held to maturity	$ 6,858
Amortized Cost, Held to maturity	6,858
Amortized Cost, Mortgage-backed securities, Held to maturity	2,170
Held-to-maturity, Amortized Cost	9,028	$ 9,274
Fair Value of Held-to-maturity Securities
Fair Value, After ten years, Held to maturity	6,825
Fair Value, Held to maturity	6,825
Fair Value, Mortgage-backed securities, Held to maturity	2,279
Held to maturity, Fair Value	$ 9,104	$ 9,547

Investment securities - Fair Va

Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	$ 151,815	$ 139,450
12 Months or More, Fair Value	66,322	68,109
Less Than 12 Months, Unrealized Losses	2,734	1,331
12 Months or More, Unrealized Losses	2,204	1,592
Total, Fair Value	218,137	207,559
Total, Unrealized Losses	4,938	2,923
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	61,928	54,788
12 Months or More, Fair Value	4,109	3,808
Less Than 12 Months, Unrealized Losses	844	454
12 Months or More, Unrealized Losses	88	61
Total, Fair Value	66,037	58,596
Total, Unrealized Losses	932	515
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	19,143	17,350
12 Months or More, Fair Value	2,429	2,464
Less Than 12 Months, Unrealized Losses	366	170
12 Months or More, Unrealized Losses	92	58
Total, Fair Value	21,572	19,814
Total, Unrealized Losses	458	228
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	39,607	39,096
12 Months or More, Fair Value	50,763	51,365
Less Than 12 Months, Unrealized Losses	950	445
12 Months or More, Unrealized Losses	1,827	1,295
Total, Fair Value	90,370	90,461
Total, Unrealized Losses	2,777	1,740
Mortgage-backed Securities, U.S. Government agencies
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	9,190	9,484
12 Months or More, Fair Value	3,592	3,968
Less Than 12 Months, Unrealized Losses	54	39
12 Months or More, Unrealized Losses	52	46
Total, Fair Value	12,782	13,452
Total, Unrealized Losses	106	85
Commercial mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	6,303	6,195
Less Than 12 Months, Unrealized Losses	263	120
Total, Fair Value	6,303	6,195
Total, Unrealized Losses	263	120
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	15,644	12,537
12 Months or More, Fair Value	5,429	6,504
Less Than 12 Months, Unrealized Losses	257	103
12 Months or More, Unrealized Losses	145	132
Total, Fair Value	21,073	19,041
Total, Unrealized Losses	$ 402	$ 235

Investment securities - Additio

Investment securities - Additional Information (Details) $ in Thousands	1 Months Ended	3 Months Ended			12 Months Ended
	Jan. 31, 2017security	Mar. 31, 2018USD ($)security	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016	Dec. 31, 2017USD ($)
Available-for-sale and Held-to-maturity securities
Number of investment securities held		198
Other-than-temporary impairments recognized | $		$ 0
Collateral Pledged
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged | $		$ 156,522				$ 163,936
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Number of investment securities held		114
Number of securities in continuous unrealized loss positions 12 months or longer		8
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		36
Number of securities in continuous unrealized loss positions 12 months or longer		20
Other-than-temporary impairments recognized | $			$ 0	$ 0
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Number of investment securities held		40
Number of securities in continuous unrealized loss positions 12 months or longer		16
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Number of investment securities held	8
Number of securities in continuous unrealized loss positions 12 months or longer		1

Loans, net and allowance for 39

Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Loans, net and allowance for loan losses
Net deferred loan costs	$ 719	$ 575

Loans, net and allowance for 40

Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,725,781	$ 1,693,065
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	467,404	476,199
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	833,497	786,210
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	289,367	287,935
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 135,513	$ 142,721

Loans, net and allowance for 41

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
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Allowance for loan losses:
Beginning Balance	$ 18,960	$ 15,961
Charge-offs	(426)	(311)
Recoveries	134	119
Provisions	1,050	1,200
Ending balance	19,718	16,969
Beginning Balance	18,960	15,961
Ending balance: individually evaluated for impairment			$ 1,755	$ 766
Charge-offs	(426)	(311)
Ending balance: collectively evaluated for impairment			17,963	18,194
Recoveries	134	119
Ending balance: loans acquired with deteriorated credit quality	18,960	15,961	19,718	18,960
Provisions	1,050	1,200
Loans receivable:
Total Loans			1,725,781	1,693,065
Ending balance: individually evaluated for impairment			10,727	9,705
Ending balance: collectively evaluated for impairment			1,714,116	1,682,343
Total Loans			1,725,781	1,693,065
Ending balance	19,718	16,969
Ending balance: individually evaluated for impairment			10,727	9,705
Ending balance: collectively evaluated for impairment			1,714,116	1,682,343
Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance			938	1,017
Ending balance			938	1,017
Commercial
Allowance for loan losses:
Beginning Balance	5,052	3,799
Recoveries	57	7
Provisions	297	323
Ending balance	5,406	4,129
Beginning Balance	5,052	3,799
Ending balance: individually evaluated for impairment			145	159
Ending balance: collectively evaluated for impairment			5,261	4,893
Recoveries	57	7
Ending balance: loans acquired with deteriorated credit quality	5,052	3,799	5,406	5,052
Provisions	297	323
Loans receivable:
Total Loans			467,404	476,199
Ending balance: individually evaluated for impairment			2,023	2,121
Ending balance: collectively evaluated for impairment			465,060	473,736
Total Loans			467,404	476,199
Ending balance	5,406	4,129
Ending balance: individually evaluated for impairment			2,023	2,121
Ending balance: collectively evaluated for impairment			465,060	473,736
Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance			321	342
Ending balance			321	342
Real estate Commercial
Allowance for loan losses:
Beginning Balance	7,548	5,847
Charge-offs		(125)
Recoveries	27	33
Provisions	524	536
Ending balance	8,099	6,291
Beginning Balance	7,548	5,847
Ending balance: individually evaluated for impairment			1,411	263
Charge-offs		(125)
Ending balance: collectively evaluated for impairment			6,688	7,285
Recoveries	27	33
Ending balance: loans acquired with deteriorated credit quality	7,548	5,847	8,099	7,548
Provisions	524	536
Loans receivable:
Total Loans			833,497	786,210
Ending balance: individually evaluated for impairment			4,784	3,644
Ending balance: collectively evaluated for impairment			828,125	781,921
Total Loans			833,497	786,210
Ending balance	8,099	6,291
Ending balance: individually evaluated for impairment			4,784	3,644
Ending balance: collectively evaluated for impairment			828,125	781,921
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance			588	645
Ending balance			588	645
Real estate Residential
Allowance for loan losses:
Beginning Balance	4,980	4,707
Charge-offs	(299)	(15)
Recoveries	10	22
Provisions	148	264
Ending balance	4,839	4,978
Beginning Balance	4,980	4,707
Charge-offs	(299)	(15)
Recoveries	10	22
Ending balance: loans acquired with deteriorated credit quality	4,980	4,707	4,839	4,980
Provisions	148	264
Loans receivable:
Total Loans			289,367	287,935
Total Loans			289,367	287,935
Ending balance	4,839	4,978
Consumer
Allowance for loan losses:
Beginning Balance	1,380	1,608
Charge-offs	(127)	(171)
Recoveries	40	57
Provisions	81	77
Ending balance	1,374	1,571
Beginning Balance	1,380	1,608
Ending balance: individually evaluated for impairment			17	8
Charge-offs	(127)	(171)
Ending balance: collectively evaluated for impairment			1,357	1,372
Recoveries	40	57
Ending balance: loans acquired with deteriorated credit quality	1,380	1,608	1,374	1,380
Provisions	81	77
Loans receivable:
Total Loans			135,513	142,721
Ending balance: individually evaluated for impairment			169	177
Ending balance: collectively evaluated for impairment			135,344	142,544
Total Loans			135,513	142,721
Ending balance	$ 1,374	$ 1,571
Ending balance: individually evaluated for impairment			169	177
Ending balance: collectively evaluated for impairment			$ 135,344	$ 142,544

Loans, net and allowance for 42

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	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Allowance for loan losses:
Ending balance	$ 19,718	$ 18,960	$ 16,969	$ 15,961
Ending balance: individually evaluated for impairment	1,755	766
Ending balance: collectively evaluated for impairment	17,963	18,194
Loans receivable:
Ending balance	1,725,781	1,693,065
Ending balance: individually evaluated for impairment	10,727	9,705
Ending balance: collectively evaluated for impairment	1,714,116	1,682,343
Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	938	1,017
Commercial
Allowance for loan losses:
Ending balance	5,406	5,052	4,129	3,799
Ending balance: individually evaluated for impairment	145	159
Ending balance: collectively evaluated for impairment	5,261	4,893
Loans receivable:
Ending balance	467,404	476,199
Ending balance: individually evaluated for impairment	2,023	2,121
Ending balance: collectively evaluated for impairment	465,060	473,736
Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	321	342
Real estate Commercial
Allowance for loan losses:
Ending balance	8,099	7,548	6,291	5,847
Ending balance: individually evaluated for impairment	1,411	263
Ending balance: collectively evaluated for impairment	6,688	7,285
Loans receivable:
Ending balance	833,497	786,210
Ending balance: individually evaluated for impairment	4,784	3,644
Ending balance: collectively evaluated for impairment	828,125	781,921
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	588	645
Real estate Residential
Allowance for loan losses:
Ending balance	4,839	4,980
Ending balance: individually evaluated for impairment	182	336
Ending balance: collectively evaluated for impairment	4,657	4,644
Loans receivable:
Ending balance	289,367	287,935
Ending balance: individually evaluated for impairment	3,751	3,763
Ending balance: collectively evaluated for impairment	285,587	284,142
Real estate Residential | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	29	30
Consumer
Allowance for loan losses:
Ending balance	1,374	1,380	$ 1,571	$ 1,608
Ending balance: individually evaluated for impairment	17	8
Ending balance: collectively evaluated for impairment	1,357	1,372
Loans receivable:
Ending balance	135,513	142,721
Ending balance: individually evaluated for impairment	169	177
Ending balance: collectively evaluated for impairment	$ 135,344	$ 142,544

Loans, net and allowance for 43

Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,725,781	$ 1,693,065
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	467,404	476,199
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	833,497	786,210
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	289,367	287,935
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	135,513	142,721
Pass
Accounts, Notes, Loans and Financing Receivable
Loans, net	1,686,377	1,661,496
Pass | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	462,244	472,185
Pass | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	804,815	764,320
Pass | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	284,005	282,484
Pass | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	135,313	142,507
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans, net	18,339	14,991
Special Mention | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	1,192	1,958
Special Mention | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	17,130	13,015
Special Mention | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	17	18
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans, net	21,065	16,578
Substandard | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	3,968	2,056
Substandard | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	11,552	8,875
Substandard | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	5,345	5,433
Substandard | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 200	$ 214

Loans, net and allowance for 44

Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 8,678	$ 7,852
Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	770	860
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	4,719	3,821
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	3,020	2,994
Consumer
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 169	$ 177

Loans, net and allowance for 45

Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 17,226	$ 14,993
Current	1,708,555	1,678,072
Total Loans	1,725,781	1,693,065
Loans > 90 Days and Accruing	435	735
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	6,557	4,081
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,556	2,325
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	9,113	8,587
Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	891	1,200
Current	466,513	474,999
Total Loans	467,404	476,199
Loans > 90 Days and Accruing	3
Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	99	124
Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	18	216
Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	774	860
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	9,743	5,737
Current	823,754	780,473
Total Loans	833,497	786,210
Real estate Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,608	1,722
Real estate Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	416	194
Real estate Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,719	3,821
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	5,430	6,228
Current	283,937	281,707
Total Loans	289,367	287,935
Loans > 90 Days and Accruing	325	549
Real estate Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,305	1,134
Real estate Residential | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	780	1,551
Real estate Residential | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,345	3,543
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,162	1,828
Current	134,351	140,893
Total Loans	135,513	142,721
Loans > 90 Days and Accruing	107	186
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	545	1,101
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	342	364
Consumer | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 275	$ 363

Loans, net and allowance for 46

Loans, net and allowance for loan losses - Summarized Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 6,621	$ 7,013	$ 6,532
Unpaid Principal Balance, With no related allowance, Total	7,608	8,471	7,482
Average Recorded Investment, With no related allowance, Total	6,578	7,071	7,053
Interest Income Recognized, With no related allowance, Total	27	12	88
Recorded Investment, With an allowance recorded, Total	5,044	4,461	4,190
Unpaid Principal Balance, With an allowance recorded, Total	5,673	4,461	4,481
Related Allowance, With an allowance recorded, Total	1,755	1,424	766
Average Recorded Investment, With an allowance recorded, Total	4,618	5,457	4,548
Interest Income Recognized, With an allowance recorded, Total	18	23	91
Recorded Investment, Total	11,665	11,474	10,722
Unpaid Principal Balance, Total	13,281	12,932	11,963
Related Allowance, With an allowance recorded, Total	1,755	1,424	766
Average Recorded Investment, Total	11,196	12,528	11,601
Interest Income Recognized, Total	45	35	179
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	1,211	765	1,279
Unpaid Principal Balance, With no related allowance, Total	1,375	1,386	1,439
Average Recorded Investment, With no related allowance, Total	1,246	1,585	1,668
Interest Income Recognized, With no related allowance, Total	17	4	43
Recorded Investment, With an allowance recorded, Total	1,133	1,923	1,184
Unpaid Principal Balance, With an allowance recorded, Total	1,158	1,923	1,218
Related Allowance, With an allowance recorded, Total	144	404	159
Average Recorded Investment, With an allowance recorded, Total	1,159	1,103	991
Interest Income Recognized, With an allowance recorded, Total	8	13	50
Recorded Investment, Total	2,344	2,688	2,463
Unpaid Principal Balance, Total	2,533	3,309	2,657
Related Allowance, With an allowance recorded, Total	144	404	159
Average Recorded Investment, Total	2,405	2,688	2,659
Interest Income Recognized, Total	25	17	93
Real estate Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,970	3,715	2,888
Unpaid Principal Balance, With no related allowance, Total	3,312	4,368	3,190
Average Recorded Investment, With no related allowance, Total	2,929	3,039	2,985
Interest Income Recognized, With no related allowance, Total	6	4	24
Recorded Investment, With an allowance recorded, Total	2,402	1,471	1,401
Unpaid Principal Balance, With an allowance recorded, Total	2,520	1,471	1,496
Related Allowance, With an allowance recorded, Total	1,411	513	263
Average Recorded Investment, With an allowance recorded, Total	1,902	3,132	2,202
Interest Income Recognized, With an allowance recorded, Total	6	6	18
Recorded Investment, Total	5,372	5,186	4,289
Unpaid Principal Balance, Total	5,832	5,839	4,686
Related Allowance, With an allowance recorded, Total	1,411	513	263
Average Recorded Investment, Total	4,831	6,171	5,187
Interest Income Recognized, Total	12	10	42
Real estate Residential
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,289	2,349	2,196
Unpaid Principal Balance, With no related allowance, Total	2,762	2,533	2,672
Average Recorded Investment, With no related allowance, Total	2,243	2,277	2,227
Interest Income Recognized, With no related allowance, Total	4	4	21
Recorded Investment, With an allowance recorded, Total	1,491	1,044	1,597
Unpaid Principal Balance, With an allowance recorded, Total	1,977	1,044	1,759
Related Allowance, With an allowance recorded, Total	182	484	336
Average Recorded Investment, With an allowance recorded, Total	1,544	1,210	1,335
Interest Income Recognized, With an allowance recorded, Total	4	4	23
Recorded Investment, Total	3,780	3,393	3,793
Unpaid Principal Balance, Total	4,739	3,577	4,431
Related Allowance, With an allowance recorded, Total	182	484	336
Average Recorded Investment, Total	3,787	3,487	3,562
Interest Income Recognized, Total	8	8	44
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	151	184	169
Unpaid Principal Balance, With no related allowance, Total	159	184	181
Average Recorded Investment, With no related allowance, Total	160	170	173
Recorded Investment, With an allowance recorded, Total	18	23	8
Unpaid Principal Balance, With an allowance recorded, Total	18	23	8
Related Allowance, With an allowance recorded, Total	18	23	8
Average Recorded Investment, With an allowance recorded, Total	13	12	20
Recorded Investment, Total	169	207	177
Unpaid Principal Balance, Total	177	207	189
Related Allowance, With an allowance recorded, Total	18	23	8
Average Recorded Investment, Total	$ 173	$ 182	$ 193

Loans, net and allowance for 47

Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)loan	Mar. 31, 2017USD ($)loan	Dec. 31, 2017USD ($)
Pre-Modification Outstanding Recorded Investment	$ 3,032	$ 2,226	$ 3,074
Loans modified as troubled debt restructuring		$ 345
Number of loans modified as troubled debt restructuring | loan		1
Real estate Residential
Loans receivable, related parties, considered as nonaccrual, past due or restructured or potential credit risk	$ 64
Real estate Residential
Number of defaults on loans restructured | loan	1

Other assets - Components of Ot

Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Other real estate owned	$ 685	$ 284
Investment in low income housing partnership	7,726	7,842
Mortgage servicing rights	719	728
Bank owned life insurance	34,023	33,836
Net deferred tax asset	4,405	3,906
Other assets	8,855	9,311
Total	66,644	64,469
Collateral Pledged
Restricted equity securities	$ 10,231	$ 8,562

Fair value estimates - Schedule

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	$ 271,554	$ 272,470
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	25,476	19,814
U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	92,497	93,648
State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	14,908	15,047
State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	97,694	103,833
Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	13,030	14,434
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	27,773	25,726
Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	189	46
Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	148	655
Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(161)	(733)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	25,665	19,860
Level 1 | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	25,476	19,814
Level 1 | Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	189	46
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	245,889	252,610
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	92,497	93,648
Level 2 | State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	14,908	15,047
Level 2 | State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	97,694	103,833
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	13,030	14,434
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	27,773	25,726
Level 2 | Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	148	655
Level 2 | Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	$ (161)	$ (733)

Fair value estimates - Schedu50

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 3,289	$ 3,424
Other real estate owned	673	216
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	3,289	3,424
Other real estate owned	$ 673	$ 216

Fair value estimates - Addition

Fair value estimates - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Other real estate owned
Fair Value Inputs, Assets, Quantitative Information
Valuation Techniques	Appraisal of collateral	Appraisal of collateral
Liquidation expenses	Liquidation expenses	Liquidation expenses
Other real estate owned | Nonrecurring Basis
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 673	$ 216
Range and weighted average of appraisal adjustments	30.70%	30.70%
Range and weighted average of liquidation expenses	5.00%	5.00%
Other real estate owned | Minimum | Nonrecurring Basis
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	20.00%	25.00%
Range and weighted average of liquidation expenses	3.00%	3.00%
Other real estate owned | Maximum | Nonrecurring Basis
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	55.90%	41.30%
Range and weighted average of liquidation expenses	6.00%	6.00%
Impaired loans
Fair Value Inputs, Assets, Quantitative Information
Valuation Techniques	Appraisal of collateral	Appraisal of collateral
Liquidation expenses	Liquidation expenses	Liquidation expenses
Impaired loans | Nonrecurring Basis
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 3,289	$ 3,424
Range and weighted average of appraisal adjustments	58.50%	67.20%
Range and weighted average of liquidation expenses	4.70%	4.90%
Impaired loans | Minimum | Nonrecurring Basis
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	7.70%	4.00%
Range and weighted average of liquidation expenses	3.00%	3.00%
Impaired loans | Maximum | Nonrecurring Basis
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	97.00%	97.00%
Range and weighted average of liquidation expenses	6.00%	6.00%

Fair value estimates - Carrying

Fair value estimates - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investment securities:
Available-for-sale	$ 271,378	$ 272,548
Common equity securities	189
Held-to-maturity	9,104	9,547
Loans held for sale		106
Mortgage servicing rights	719	728
Other assets	66,644	64,469
Carrying Value
Financial assets:
Cash and cash equivalents	26,775	37,488
Investment securities:
Available-for-sale	271,378	272,548
Common equity securities	189
Held-to-maturity	9,028	9,274
Loans held for sale		106
Net loans	1,706,063	1,674,105
Accrued interest receivable	6,482	6,936
Mortgage servicing rights	719	728
Restricted equity securities	10,231	8,562
Interest rate swaps	148	655
Total assets	2,031,013	2,010,402
Financial liabilities:
Deposits	1,720,018	1,719,018
Short-term borrowings	142,500	123,675
Long-term debt	49,265	49,734
Accrued interest payable	518	497
Interest rate swap	161	733
Total liabilities	1,912,462	1,893,657
Fair Value
Financial assets:
Cash and cash equivalents	26,775	37,488
Investment securities:
Available-for-sale	271,378	272,548
Common equity securities	189
Held-to-maturity	9,104	9,547
Loans held for sale		106
Net loans	1,666,717	1,645,292
Accrued interest receivable	6,482	6,936
Mortgage servicing rights	1,618	1,638
Restricted equity securities	10,231	8,562
Other assets		2,249
Interest rate swaps	148	655
Total assets	1,992,642	1,985,021
Financial liabilities:
Deposits	1,715,633	1,666,284
Short-term borrowings	142,500	123,675
Long-term debt	49,482	50,147
Accrued interest payable	518	497
Interest rate swap	161	733
Total liabilities	1,908,294	1,841,336
Level 1
Financial assets:
Cash and cash equivalents	26,775	37,488
Investment securities:
Available-for-sale	25,476	19,860
Common equity securities	189
Level 2
Investment securities:
Available-for-sale	245,902	252,688
Held-to-maturity	9,104	9,547
Loans held for sale		106
Accrued interest receivable	6,482	6,936
Mortgage servicing rights	1,618	1,638
Restricted equity securities	10,231	8,562
Interest rate swaps	148	655
Financial liabilities:
Deposits	1,715,633	1,666,284
Short-term borrowings	142,500	123,675
Long-term debt	49,482	50,147
Accrued interest payable	518	497
Interest rate swap	161	733
Level 3
Investment securities:
Net loans	$ 1,666,717	1,645,292
Other assets		$ 2,249

Employee benefit plans - Additi

Employee benefit plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units awarded		2,020
Unrecognized compensation expense		$ 81
Employee Benefit Plans
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 340	296
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	32	$ 17
Unrecognized compensation expense	$ 250
Weighted average vesting period	1 year 9 months 18 days
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Common stock available for grant as awards	98,462
Share based compensation expense	$ 5
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
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) $ in Thousands	Mar. 31, 2018USD ($)security	Dec. 31, 2017USD ($)
Interest rate swap.
Derivatives, Fair Value
Number of instruments held | security	5
Notional amount	$ 58,777	$ 55,928
Derivatives designated as hedging instruments | Other Assets. | Interest Rate Products
Derivatives, Fair Value
Asset Derivatives	148	655
Derivatives designated as hedging instruments | Other Liabilities | Interest Rate Products
Derivatives, Fair Value
Liability Derivatives	161	$ 733
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives	148
Liability Derivatives	$ 161

Derivatives and hedging activ55

Derivatives and hedging activities - Effect of Derivative Instruments on the Income Statement (Details) - Derivatives not designated as hedging instruments $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Derivative Instruments, Gain (Loss)
Derivatives and hedging activities	$ 66
Other non-interest income | Interest Rate Products
Derivative Instruments, Gain (Loss)
Derivatives and hedging activities	$ 66

Derivatives and hedging activ56

Derivatives and hedging activities - Credit-risk-related Contingent Features (Details) - Credit-risk contract - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Derivative Liability	$ 12	$ 79
Derivative, Collateral, Obligation to Return Cash	$ 0	$ 880

Income taxes (Details)

Income taxes (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Income taxes
Federal statutory rate	11.70%	20.90%	21.00%	35.00%