Peoples Financial Services (PFIS) 10-Q 8 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 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	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		7,399,054
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Cash and due from banks:
Cash and due from banks	$ 40,458	$ 36,336
Interest-bearing deposits in other banks	137	1,152
Total cash and due from banks	40,595	37,488
Investment securities:
Available-for-sale	274,794	272,502
Equity investments carried at fair value	291	46
Held-to-maturity: Fair value September 30, 2018, $8,435; December 31, 2017, $9,547	8,551	9,274
Total investment securities	283,636	281,822
Loans, net	1,779,445	1,693,065
Less: allowance for loan losses	20,413	18,960
Net loans	1,759,032	1,674,105
Loans held for sale	98	106
Premises and equipment, net	37,467	37,557
Accrued interest receivable	6,565	6,936
Goodwill	63,370	63,370
Intangible assets, net	2,507	3,178
Other assets	64,573	64,469
Total assets	2,257,843	2,169,031
Deposits:
Noninterest-bearing	404,293	380,729
Interest-bearing	1,423,571	1,338,289
Total deposits	1,827,864	1,719,018
Short-term borrowings	99,450	123,675
Long-term debt	48,461	49,734
Accrued interest payable	745	497
Other liabilities	8,352	11,131
Total liabilities	1,984,872	1,904,055
Stockholders’ equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,399,054 shares at September 30, 2018 and 7,396,505 at December 31, 2017	14,798	14,793
Capital surplus	135,226	135,043
Retained earnings	132,631	121,353
Accumulated other comprehensive loss	(9,684)	(6,213)
Total stockholders’ equity	272,971	264,976
Total liabilities and stockholders’ equity	$ 2,257,843	$ 2,169,031

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position
Held-to-maturity, Fair value	$ 8,435	$ 9,547
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,399,054	7,396,505
Common stock, shares outstanding	7,399,054	7,396,505

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest and fees on loans:
Taxable	$ 18,798	$ 16,535	$ 54,546	$ 48,021
Tax-exempt	919	813	2,660	2,334
Interest and dividends on investment securities:
Taxable	998	714	2,790	2,130
Tax-exempt	639	716	2,001	2,262
Dividends	16	13	51	37
Interest on interest-bearing deposits in other banks	49	40	131	107
Total interest income	21,419	18,831	62,179	54,891
Interest expense:
Interest on deposits	2,342	1,654	6,135	4,617
Interest on short-term borrowings	809	177	2,317	599
Interest on long-term debt	315	344	936	1,041
Total interest expense	3,466	2,175	9,388	6,257
Net interest income	17,953	16,656	52,791	48,634
Provision for loan losses	1,050	1,200	3,150	3,600
Net interest income after provision for loan losses	16,903	15,456	49,641	45,034
Noninterest income:
Mortgage banking income	163	193	472	576
Life insurance investment income	190	193	568	577
Net unrealized gain on equity investment securities	14		14
Net gain on sale of credit card loans			291
Net gain on sale of merchant services business				2,278
Total noninterest income	3,253	3,661	10,488	13,822
Noninterest expense:
Salaries and employee benefits expense	6,946	6,550	21,291	19,851
Net occupancy and equipment expense	2,681	2,483	8,215	7,327
Merchant services expense	3	33	6	1,796
Amortization of intangible assets	220	259	670	785
Professional fees and outside services	431	472	1,500	1,757
FDIC insurance and assessments	247	241	830	607
Donations	355	323	1,011	878
Other expenses	1,654	2,119	5,591	5,837
Total noninterest expense	12,537	12,480	39,114	38,838
Income before income taxes	7,619	6,637	21,015	20,018
Income tax expense	902	1,287	2,487	4,209
Net income	6,717	5,350	18,528	15,809
Other comprehensive (loss) income:
Unrealized (loss) gain on investment securities available-for-sale	(1,179)	(381)	(4,394)	1,076
Other comprehensive loss	(1,179)	(381)	(4,394)	1,076
Income tax (benefit) expense	(248)	(133)	(925)	377
Other comprehensive (loss) income, net of income taxes	(931)	(248)	(3,469)	699
Comprehensive income	$ 5,786	$ 5,102	$ 15,059	$ 16,508
Net income:
Basic	$ 0.91	$ 0.72	$ 2.50	$ 2.14
Diluted	$ 0.91	$ 0.72	$ 2.50	$ 2.14
Average common shares outstanding:
Basic	7,399,054	7,396,505	7,397,373	7,395,612
Diluted	7,399,054	7,396,505	7,397,373	7,395,612
Dividends declared	$ 0.33	$ 0.32	$ 0.98	$ 0.94
Service charges, fees and commissions
Noninterest income:
Revenue from contracts with customers	$ 1,883	$ 2,156	$ 5,856	$ 5,410
Merchant services income
Noninterest income:
Revenue from contracts with customers	128	165	687	2,358
Commission and fees on fiduciary activities
Noninterest income:
Revenue from contracts with customers	570	540	1,552	1,542
Wealth management income
Noninterest income:
Revenue from contracts with customers	$ 305	$ 414	$ 1,048	$ 1,081

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		122			122
Net income			15,809		15,809
Other comprehensive income, net of income taxes				699	699
Dividends declared			(6,952)		(6,952)
Common stock grants awarded, net of unearned compensation of $81: 2,020 shares	5	(5)
Balance at Sep. 30, 2017	14,793	134,988	119,971	(3,456)	266,296
Balance at Dec. 31, 2017	14,793	135,043	121,353	(6,213)	264,976
Stock based compensation		188			188
Net income			18,528		18,528
Other comprehensive income, net of income taxes				(3,469)	(3,469)
Dividends declared			(7,252)		(7,252)
Common stock grants awarded, net of unearned compensation of $81: 2,020 shares	5	(5)
Balance at Sep. 30, 2018					272,971
Reclassification related to adoption of ASU 2016-01 | Accounting Standards Update 2016-01			2	(2)
Balance	$ 14,798	$ 135,226	$ 132,631	$ (9,684)	$ 272,971

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Stockholders' Equity
Dividends declared (in dollars per share)	$ 0.33	$ 0.32	$ 0.98	$ 0.94
Common stock grants awarded, shares			2,548	2,362
Unearned compensation	$ 103	$ 53	$ 103	$ 53

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 18,528	$ 15,809
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	1,728	1,401
Amortization of deferred loan costs	729	662
Amortization of intangibles	670	785
Amortization of low income housing partnerships	349	352
Provision for loan losses	3,150	3,600
Net loss on investment securities	(14)
Net gain on sale of other real estate owned	(17)	(50)
Loans originated for sale	(9,931)	(16,927)
Proceeds from sale of loans originated for sale	10,013	16,622
Net gain on sale of loans originated for sale	(74)	(155)
Net amortization of investment securities	1,718	2,130
Net gain on sale of loans	(291)
Net gain on sale of merchant services business		(2,278)
Life insurance investment income	(568)	(577)
Stock based compensation	188	122
Net change in:
Accrued interest receivable	371	320
Other assets	516	(1,780)
Accrued interest payable	248	19
Other liabilities	(2,967)	2,665
Net cash provided by operating activities	24,360	22,720
Proceeds from repayments of investment securities:
Available-for-sale	24,087	44,489
Held-to-maturity	710	936
Purchases of investment securities:
Available-for-sale	(32,723)	(45,254)
Net redemption of restricted equity securities	735	710
Proceeds from sale of student loan portfolio	5,103
Proceeds from sale of credit card loan portfolio	2,407
Net increase in lending activities	(96,916)	(101,320)
Purchases of premises and equipment	(1,979)	(5,514)
Proceeds from the sale of premises and equipment	341
Proceeds from investment in life insurance	304
Proceeds from the sale of merchant services business		2,300
Proceeds from sale of other real estate owned	582	487
Net cash used in investing activities	(97,349)	(103,166)
Cash flows from financing activities:
Net increase in deposits	108,846	99,098
Repayment of long-term debt	(1,273)	(7,935)
Net decrease in short-term borrowings	(24,225)	(10,800)
Cash dividends paid	(7,252)	(6,952)
Net cash provided by (used in) financing activities	76,096	73,411
Net increase (decrease) in cash and cash equivalents	3,107	(7,035)
Cash and cash equivalents at beginning of period	37,488	39,941
Cash and cash equivalents at end of period	40,595	32,906
Cash paid during the period for:
Interest	9,140	6,238
Income taxes	2,550	4,100
Noncash items:
Transfers of loans to other real estate	$ 623	$ 479

Summary of significant accounti

Summary of significant accounting policies	9 Months Ended
	Sep. 30, 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”). Unless the context indicates otherwise, all references in this quarterly report to the “Peoples”, “Company”, “Bank”, “we”, “us” and “our” refer to Peoples Financial Services Corp., its subsidiaries and its and their respective predecessors. The Company services its retail and commercial customers through twenty-seven full-service community banking offices located within the Lackawanna, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York. Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP’) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the operating results or financial position of the Company. The operating results and financial position of the Company for the three and nine months ended and as of September 30, 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 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 gross 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 incomes. Wealth management 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 March 2018, the FASB issued ASU 2018-05 “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118.” These amendments add SEC guidance to the FASB Accounting Standards Codification regarding the Tax Cuts and Jobs Act pursuant to the issuance of SAB 118. The amendments were effective upon addition to the FASB Codification. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued 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 February 2016, the FASB issued ASU No. 2016-02, “Leases”. From the lessee's perspective, the new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Accordingly, the Company will adopt this guidance on January 1, 2019. Once adopted, the Company will recognize ROU assets and lease liabilities for the majority of its operating lease commitments. The amounts of ROU and corresponding lease liabilities recorded upon adoption will be based primarily on the present value of unpaid future minimum lease payments as of January 1, 2019. The amounts will also be impacted by assumptions around renewals and extensions, and the interest rate used to discount those future lease obligations. As of September 30, 2018, the Company has approximately $4,555 in minimum lease payments due under such agreements for the period January 1, 2019 and forward. While these leases represent a majority of the leases within the scope of the standard, the leases are subject to change as a result of the execution of new leases and the termination of existing leases prior to the effective date, as well as the identification of potential leases through the date of adoption. 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 GAAP in that current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring.  The amendments in the ASU retain many of the disclosure requirements related to credit quality in current GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the ASU 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 July 2018, the FASB issued ASU No. 2018-11, “Leases - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company expects to elect both transition options. ASU 2018-11 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the FASB Concepts Statement, “Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements”. In accordance with the Concepts Statement, this ASU removes, modifies and adds select disclosure requirements under Topic 820 after consideration of costs and benefits. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 for public entities, with early adoption permitted. The adoption of this guidance on January 1, 2020 is not expected to have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15 Intangibles – Goodwill and Other–Internal-Use Software (Subtopic 350-40): “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. ASU 2018-15 requires that a customer in a hosting arrangement that is a service contract follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize and which costs to expense, as well as requiring costs that cannot be capitalized to be expensed over the term of the hosting arrangement. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 for public entities, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance on January 1, 2020 is not expected to have a material effect on the operating results or financial position of the Company. Refer to Note 1 to the Company’s consolidated financial statements included in the 2017 Annual Report on Form 10-K and the Quarterly Report on Form 10-Q for the periods ended March 31, 2018 and June 30, 2018 for a discussion of additional accounting guidance applicable to the Company that will be adopted in future periods and accounting guidance adopted by the Company during those periods.

Other comprehensive loss

Other comprehensive loss	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 December 31, 2017 Net unrealized loss on investment securities available-for-sale $ (5,631) $ (1,237) Income tax (1,183) (260) Net of income taxes (4,448) (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 $ (9,684) $ (6,213) Other comprehensive income (loss) and related tax effects for the three and nine months ended September 30, 2018 and 2017 is as follows: Three Months Ended September 30, 2018 2017 Unrealized loss on investment securities available-for-sale $ (1,179) $ (381) Net gain on the sale of investment securities available-for-sale Other comprehensive loss before taxes (1,179) (381) Income tax (248) (133) Other comprehensive loss $ (931) $ (248) Nine Months Ended September 30, 2018 2017 Unrealized (loss) gain on investment securities available-for-sale $ (4,394) $ 1,076 Net gain on the sale of investment securities available-for-sale Other comprehensive (loss) income before taxes (4,394) 1,076 Income tax (925) 377 Other comprehensive (loss) income $ (3,469) $ 699

Earnings per share

Earnings per share	9 Months Ended
	Sep. 30, 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 and nine month periods ended September 30, 2018 and 2017. 2018 2017 For the Three Months Ended September 30, Basic Diluted Basic Diluted Net Income $ 6,717 $ 6,717 $ 5,350 $ 5,350 Average common shares outstanding 7,399,054 7,399,054 7,396,505 7,396,505 Earnings per share $ 0.91 $ 0.91 $ 0.72 $ 0.72 2018 2017 For the Nine Months Ended September 30 Basic Diluted Basic Diluted Net Income $ 18,528 $ 18,528 $ 15,809 $ 15,809 Average common shares outstanding 7,397,373 7,397,373 7,395,612 7,395,612 Earnings per share $ 2.50 $ 2.50 $ 2.14 $ 2.14

Investment securities

Investment securities	9 Months Ended
	Sep. 30, 2018
Investment securities
Investment securities	4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at September 30, 2018 and December 31, 2017 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2018 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 25,941 $ 711 $ 25,230 U.S. Government-sponsored enterprises 95,089 3,317 91,772 State and municipals: Taxable 13,576 $ 237 13,813 Tax-exempt 90,535 495 1,061 89,969 Residential Mortgage-backed securities: U.S. Government agencies 13,719 134 13,585 U.S. Government-sponsored enterprises 35,284 1 811 34,474 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,281 330 5,951 Total $ 280,425 $ 733 $ 6,364 $ 274,794 Held-to-maturity: Tax-exempt state and municipals $ 6,856 $ 2 $ 185 $ 6,673 Residential Mortgage-backed securities: U.S. Government agencies 45 45 U.S. Government-sponsored enterprises 1,650 72 5 1,717 Total $ 8,551 $ 74 $ 190 $ 8,435 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 Total $ 273,742 $ 1,666 $ 2,906 $ 272,502 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 September 30, 2018 and December 31, 2017, we had $291 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 Accumulated Other Comprehensive Income (“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, net of income tax were reclassified out of AOCI and into retained earnings with subsequent changes in fair value being recognized in net income. At September 30, 2018, the fair value of our equity portfolio exceeded the cost basis by $14. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and nine months ended September 30, 2018 (in thousands): Three months ended Nine months ended September 30, 2018 September 30, 2018 September 30, 2018 Net gains recognized during the period on equity securities $ 14 $ 14 Less: Net gains and (losses) recognized during the period on equity securities sold during the period Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 14 $ 14 Restricted Investment In Stock Restricted investment in stock includes Federal Home Loan Bank of Pittsburgh (“FHLB”) with a carrying cost of $7,785 and $8,520 at September 30, 2018 and December 31, 2017, respectively and Atlantic Community Bankers Bank (“ACBB”) stock with a carrying cost of $42 and VISA Class B stock with a carry cost of $0 at September 30, 2018 and December 31, 2017, are included in other assets in the consolidated balance sheets. FHLB and ACBB stock was issued as a requirement to facilitate participation in borrowing and other banking services. The investment in FHLB stock may fluctuate, as it is based on the member banks’ use of FHLB’s services. Peoples 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 (1.6298 as of September 30, 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 stock has no readily determinable fair value. These restricted investments are carried at cost and evaluated for other-than-temporary impairment (“OTTI”) periodically. As of September 30, 2018, there was no OTTI associated with these investments. The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at September 30, 2018, is summarized as follows: Fair September 30, 2018 Value Within one year $ 34,805 After one but within five years 156,767 After five but within ten years 16,149 After ten years 13,063 220,784 Mortgage-backed securities 54,010 Total $ 274,794 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at September 30, 2018, is summarized as follows: Amortized Fair September 30, 2018 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,856 $ 6,673 6,856 6,673 Mortgage-backed securities 1,695 1,762 Total $ 8,551 $ 8,435 Securities with a carrying value of $164,516 and $163,936 at September 30, 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 September 30, 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 OTTI has not been recognized at September 30, 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 September 30, 2018 Value Losses Value Losses Value Losses U.S. Treasury securities $ 8,711 $ 169 $ 16,519 $ 542 $ 25,230 $ 711 U.S. Government-sponsored enterprises 16,813 337 74,959 2,980 91,772 3,317 State and municipals: Tax-exempt 52,220 893 14,529 353 66,749 1,246 Residential Mortgage-backed securities: U.S. Government agencies 6,423 33 7,162 101 13,585 134 U.S. Government-sponsored enterprises 21,705 322 13,261 494 34,966 816 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 5,951 330 5,951 330 Total $ 105,872 $ 1,754 $ 132,381 $ 4,800 $ 238,253 $ 6,554 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 209 investment securities, consisting of 118 tax-exempt state and municipal obligations, nine U.S. Treasury securities, 38 U.S. Government-sponsored enterprise securities, and 44 mortgage-backed securities that were in unrealized loss positions at September 30, 2018. Of these securities, six U.S. Treasury securities, 30 U.S. Government-sponsored enterprise securities, 23 tax-exempt state and municipal obligations, and 28 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 September 30, 2018. There was no OTTI recognized for the three or nine months ended September 30, 2018 and 2017.

Loans, net and allowance for lo

Loans, net and allowance for loan losses	9 Months Ended
	Sep. 30, 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 September 30, 2018 and December 31, 2017 are summarized as follows. Net deferred loan costs were $930 and $575 at September 30, 2018 and December 31, 2017. September 30, 2018 December 31, 2017 Commercial $ 478,128 $ 476,199 Real estate: Commercial 881,071 786,210 Residential 297,819 287,935 Consumer 122,427 142,721 Total $ 1,779,445 $ 1,693,065 The changes in the allowance for loan losses account by major classification of loan for the three and nine months ended September 30, 2018 and 2017 are summarized as follows: Real estate September 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance July 1, 2018 $ 5,749 $ 7,506 $ 4,962 $ 1,356 $ 19,573 Charge-offs (148) (63) (117) (328) Recoveries 12 26 13 67 118 Provisions 289 536 164 61 1,050 Ending balance $ 5,902 $ 8,005 $ 5,139 $ 1,367 $ 20,413 Real estate September 30, 2017 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance July 1, 2017 $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ 17,802 Charge-offs (17) (82) (169) (268) Recoveries 3 41 4 49 97 Provisions 358 566 175 101 1,200 Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ 18,831 Real estate September 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2018 $ 5,052 $ 7,548 $ 4,980 1,380 18,960 Charge-offs (150) (1,232) (381) (389) (2,152) Recoveries 128 83 80 164 455 Provisions 872 1,606 460 212 3,150 Ending balance $ 5,902 $ 8,005 $ 5,139 $ 1,367 $ 20,413 Real estate September 30, 2017 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2017 $ 3,799 $ 5,847 $ 4,707 $ 1,608 $ 15,961 Charge-offs (49) (367) (105) (489) (1,010) Recoveries 16 96 30 138 280 Provisions 1,004 1,618 661 317 3,600 Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ 18,831 The allocation of the allowance for loan losses and the related loans by major classifications of loans at September 30, 2018 and December 31, 2017 is summarized as follows: Real estate September 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 5,902 $ 8,005 $ 5,139 $ 1,367 $ 20,413 Ending balance: individually evaluated for impairment 93 462 362 14 931 Ending balance: collectively evaluated for impairment 5,809 7,543 4,777 1,353 19,482 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ Loans receivable: Ending balance $ 478,128 $ 881,071 $ 297,819 $ 122,427 $ 1,779,445 Ending balance: individually evaluated for impairment 1,996 4,538 3,651 156 10,341 Ending balance: collectively evaluated for impairment 475,833 875,988 294,141 122,271 1,768,233 Ending balance: loans acquired with deteriorated credit quality $ 299 $ 545 $ 27 $ $ 871 Real estate December 31, 2017 Commercial Commercial Residential Consumer 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 September 30, 2018 and December 31, 2017: Special September 30, 2018 Pass Mention Substandard Doubtful Total Commercial $ 473,685 $ 1,542 $ 2,901 $ $ 478,128 Real estate: Commercial 856,513 11,920 12,638 881,071 Residential 292,530 361 4,928 297,819 Consumer 122,210 217 122,427 Total $ 1,744,938 $ 13,823 $ 20,684 $ $ 1,779,445 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 September 30, 2018 and December 31, 2017 is summarized as follows: September 30, 2018 December 31, 2017 Commercial $ 808 $ 860 Real estate: Commercial 4,214 3,821 Residential 2,565 2,994 Consumer 156 177 Total $ 7,743 $ 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 September 30, 2018 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 218 $ $ 808 $ 1,026 $ 477,102 $ 478,128 Real estate: Commercial 1,681 104 4,288 6,073 874,998 881,071 74 Residential 1,774 531 3,075 5,380 292,439 297,819 $ 510 Consumer 527 420 156 1,103 121,324 122,427 Total $ 4,200 $ 1,055 $ 8,327 $ 13,582 $ 1,765,863 $ 1,779,445 $ 584 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 and nine months ended September 30, 2018 and September 30, 2017, and as of and for the year ended, December 31, 2017 by major loan classification: This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income September 30, 2018 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 1,356 $ 1,538 $ 1,269 $ 17 $ 1,257 $ 50 Real estate: Commercial 3,414 3,666 3,143 5 3,036 20 Residential 2,366 3,003 2,256 7 2,249 15 Consumer 142 149 101 131 Total 7,278 8,356 6,769 29 6,673 85 With an allowance recorded: Commercial 939 1,086 93 1,020 7 1,089 23 Real estate: Commercial 1,669 1,774 462 1,712 8 1,807 18 Residential 1,312 1,508 362 1,369 5 1,456 13 Consumer 14 14 14 9 11 Total 3,934 4,382 931 4,110 20 4,363 54 Total impaired loans Commercial 2,295 2,624 93 2,289 24 2,346 73 Real estate: Commercial 5,083 5,440 462 4,855 13 4,843 38 Residential 3,678 4,511 362 3,625 12 3,705 28 Consumer 156 163 14 110 142 Total $ 11,212 $ 12,738 $ 931 $ 10,879 $ 49 $ 11,036 $ 139 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 Total impaired loans 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 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income September 30, 2017 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 2,310 $ 2,455 $ 1,945 $ $ 1,765 $ Real estate: Commercial 2,900 3,192 2,979 3,009 Residential 2,303 2,727 2,193 2,235 Consumer 171 183 180 175 Total 7,684 8,557 7,297 38 7,184 92 With an allowance recorded: Commercial 833 910 $ 436 783 943 Real estate: Commercial 1,807 2,073 631 1,673 6 2,402 13 Residential 1,425 1,663 616 1,330 8 1,270 22 Consumer 23 23 23 34 23 Total 4,088 4,669 1,706 3,820 14 4,638 35 Total impaired loans Commercial 3,143 3,365 436 2,728 28 2,708 63 Real estate: Commercial 4,707 5,265 631 4,652 12 5,411 32 Residential 3,728 4,390 616 3,523 12 3,505 32 Consumer 194 206 23 214 198 Total $ 11,772 $ 13,226 $ 1,706 $ 11,117 $ 52 $ 11,822 $ 127 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 $3,230 at September 30, 2018, $3,074 at December 31, 2017 and $3,365 at September 30, 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 September 30, 2018. There were four loans , representing two credit relationships, modified as a troubled debt restructurings for the three months ended September 30, 2017 totaling $1,249. For the nine months ended September 30, 2018, there was one commercial real estate loan modified as a troubled debt restructuring totaling $340. For the nine months ended September 30, 2017, six loans were modified as troubled debt restructurings in the amount of $1,658. During the three months ended September 30, 2018, there was one payment default on a restructured residential real estate loan with an outstanding balance of $6. During the nine months ended September 30, 2018, there were two payment defaults on restructured residential mortgage loans with a total outstanding amount of $64. There were no payment defaults during the three or nine months ended September 30, 2017 on loans restructured within the last twelve months.

Other assets

Other assets	9 Months Ended
	Sep. 30, 2018
Other assets
Other assets	6. Other assets: The components of other assets at September 30, 2018, and December 31, 2017 are summarized as follows: September 30, 2018 December 31, 2017 Other real estate owned $ 342 $ 284 Investment in low income housing partnership 7,493 7,842 Mortgage servicing rights 731 728 Bank owned life insurance 34,100 33,836 Restricted equity securities 7,827 8,562 Net deferred tax asset 4,828 3,906 Other assets 9,252 9,311 Total $ 64,573 $ 64,469

Fair value estimates

Fair value estimates	9 Months Ended
	Sep. 30, 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. During the periods ended September 30, 2018 and December 31, 2017 there were no significant transfers between Level 1 and Level 2 and no transfers in or out of Level 3. 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 September 30, 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 September 30, 2018 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 25,230 $ 25,230 $ U.S. Government-sponsored enterprises 91,772 $ 91,772 State and Municipals: Taxable 13,813 13,813 Tax-exempt 89,969 89,969 Mortgage-backed securities: U.S. Government agencies 13,585 13,585 U.S. Government-sponsored enterprises 40,425 40,425 Common equity securities 291 291 Interest rate swap-other assets 864 864 Interest rate swap-other liabilities (841) (841) Total $ 275,108 $ 25,521 $ 249,587 $ 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 September 30, 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 September 30, 2018 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,003 $ 3,003 Other real estate owned $ 342 $ 342 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 September 30, 2018 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,003 Appraisal of collateral Appraisal adjustments 1.3% to 97.0% (55.9)% Liquidation expenses 3.0% to 6.0% (4.9)% Other real estate owned $ 342 Appraisal of collateral Appraisal adjustments 26.0% to 73.3% (31.8)% 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 September 30, 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 September 30, 2018 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 40,595 $ 40,595 $ 40,595 Investment securities: Available-for-sale 274,794 274,794 25,230 $ 249,564 Common equity securities 291 291 291 Held-to-maturity 8,551 8,435 8,435 Loans held for sale 98 98 98 Net loans 1,759,032 1,706,913 $ 1,706,913 Accrued interest receivable 6,565 6,565 6,565 Mortgage servicing rights 731 1,645 1,645 Restricted equity securities 7,827 7,827 7,827 Interest rate swaps 864 864 864 Total $ 2,099,348 $ 2,048,027 Financial liabilities: Deposits $ 1,827,864 $ 1,822,365 $ 1,822,365 Short-term borrowings 99,450 99,450 99,450 Long-term debt 48,461 48,487 48,487 Accrued interest payable 745 745 745 Interest rate swaps 841 841 841 Total $ 1,977,361 $ 1,971,888 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 Interest rate swaps 655 655 655 Total $ 2,010,402 $ 1,982,772 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	9 Months Ended
	Sep. 30, 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 Plans (“SERPs”) and an Employees’ Pension Plan, which is currently frozen. For the three and nine months ended September 30, salaries and employee benefits expense includes approximately $330 and $1,073, respectively in 2018 and $311 and $982, respectively in 2017 relating to the employee benefit plans. Pension Benefits Three Months Ended September 30, 2018 2017 Components of net periodic pension cost: Interest cost $ 233 $ 217 Expected return on plan assets (360) (305) Amortization of unrecognized net gain 73 65 Net periodic other benefit cost $ (54) $ (23) Pension Benefits Nine Months Ended September 30, 2018 2017 Components of net periodic pension cost: Interest cost $ 389 $ 433 Expected return on plan assets (600) (610) Amortization of unrecognized net gain 122 130 Net periodic other benefit cost $ (89) $ (47) The Company contributed $2,700 to the pension plan during the third quarter of 2018. This contribution lessens the unfunded portion of the pension plan and will reduce future premium costs associated with the plan. Currently, the Company pays a fixed premium cost of $18 annually with an additional $92 for the variable portion of the premium. This will be reduced to $0 with the current funding status of the pension. 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 September 30, 2018, there were 86,994 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. In 2018, the Company awarded 2,548 shares of non-performance-based restricted stock, bringing the total of nonvested restricted stock awards to 2,890 shares, and 8,920 performance-based restricted stock units under the 2017 Plan. 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 and 2018 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 $31 and $93 for the three and nine months ended September 30, 2018 for awards granted under the 2008 Plan and $52 and $95 for awards granted under the 2017 Plan. The Company recognized compensation expense of $41 and $89 for the three and nine months ended September 30, 2017 for awards granted under the 2008 Plan and did not recognize any compensation expense for the three and nine months ended September 30, 2017 for awards granted under the 2017 Plan. As of September 30, 2018, the Company had $609 of unrecognized compensation expense associated with restricted stock awards. The remaining cost is expected to be recognized over a weighted average vesting period of 2 years.

Derivatives and hedging activit

Derivatives and hedging activities	9 Months Ended
	Sep. 30, 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 Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of September 30, 2018 As of December 31, 2017 As of September 30, 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 $ 864 Other Assets $ 655 Other Liabilities $ 841 Other Liabilities $ 733 Total derivatives not designated as hedging instruments $ 864 $ 655 $ 841 $ 733 Non-designated Hedges None of the Company’s derivatives are designated in qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers, which the Company implemented during the third quarter of 2017. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of September 30, 2018, the Company had 6 interest rate swaps with an aggregate notional amount of $62,657 related to this program compared to 5 interest rate swaps with an aggregate notional amount of $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 and nine months ended September 30, 2018 and 2017. Amount of Gain or Amount of Gain or Amount of Gain or Amount of Gain or (Loss) Recognized in (Loss) Recognized in (Loss) Recognized in (Loss) Recognized in Location of Gain or (Loss) Income Income Income Income Recognized in Income on Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments Derivative September 30, 2018 September 30, 2018 September 30, 2017 September 30, 2017 Interest Rate Products Other non-interest income $ 18 $ 103 $ (55) $ (55) Credit-risk-related Contingent Features The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. The Company has agreements with certain of its derivative counterparties that contain provisions that require the Company’s debt to maintain an investment grade credit rating from each of the major credit rating agencies. If the Company’s credit rating is reduced below investment grade then a termination event shall be deemed to have occurred and the non-affected counterparty shall have the right but not obligation to terminate all affected transactions under the agreement. As of September 30, 2018, the termination value of derivatives in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $24. As of 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 $79. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and holds collateral of $100 against its obligations under these agreements as of September 30, 2018, compared to posted collateral of $880 with a counterparty 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.

Short-term borrowings

Short-term borrowings	9 Months Ended
	Sep. 30, 2018
Short-term borrowings
Short-term borrowings	10. Short-term borrowings Short-term borrowings consisted of FHLB advances representing overnight borrowings at September 30, 2018 and December 31, 2017: At and for the nine months ended September 30, 2018 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at Balance Balance Balance the nine months ended September 30, 2018 30-Sep-18 FHLB advances $ 99,450 $ 153,669 $ 189,275 2.02 % 2.38 % At and for the year ended December 31, 2017 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 123,675 $ 76,846 $ 123,675 1.17 % 1.54 % The Bank has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At September 30, 2018, the Bank’s maximum borrowing capacity was $694,115 of which $147,811 was outstanding in borrowings. At December 31, 2017, the Bank’s maximum borrowing capacity was $631,782 of which $173,409 was outstanding in borrowings. Short-term borrowings were used to fund our loan growth during the first half of 2018 resulting in higher average balances as deposit balances remained relatively flat, however, during the three months ended September 30, 2018 deposit balances increased allowing the Bank to decrease the amount of its short-term borrowings. Short-term borrowings are lower by $24,225 since year end 2017. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day.

Income taxes

Income taxes	9 Months Ended
	Sep. 30, 2018
Income taxes
Income taxes	11. 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 11.8% for the three and nine months ended September 30, 2018 from 19.4% and 21.0% for the three and nine months ended September 30, 2017.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	9 Months Ended
	Sep. 30, 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”). Unless the context indicates otherwise, all references in this quarterly report to the “Peoples”, “Company”, “Bank”, “we”, “us” and “our” refer to Peoples Financial Services Corp., its subsidiaries and its and their respective predecessors. The Company services its retail and commercial customers through twenty-seven full-service community banking offices located within the Lackawanna, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York.
Basis of presentation	Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP’) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the operating results or financial position of the Company. The operating results and financial position of the Company for the three and nine months ended and as of September 30, 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 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 gross 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 incomes. Wealth management 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 March 2018, the FASB issued ASU 2018-05 “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118.” These amendments add SEC guidance to the FASB Accounting Standards Codification regarding the Tax Cuts and Jobs Act pursuant to the issuance of SAB 118. The amendments were effective upon addition to the FASB Codification. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued 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 February 2016, the FASB issued ASU No. 2016-02, “Leases”. From the lessee's perspective, the new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Accordingly, the Company will adopt this guidance on January 1, 2019. Once adopted, the Company will recognize ROU assets and lease liabilities for the majority of its operating lease commitments. The amounts of ROU and corresponding lease liabilities recorded upon adoption will be based primarily on the present value of unpaid future minimum lease payments as of January 1, 2019. The amounts will also be impacted by assumptions around renewals and extensions, and the interest rate used to discount those future lease obligations. As of September 30, 2018, the Company has approximately $4,555 in minimum lease payments due under such agreements for the period January 1, 2019 and forward. While these leases represent a majority of the leases within the scope of the standard, the leases are subject to change as a result of the execution of new leases and the termination of existing leases prior to the effective date, as well as the identification of potential leases through the date of adoption. 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 GAAP in that current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring.  The amendments in the ASU retain many of the disclosure requirements related to credit quality in current GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the ASU 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 July 2018, the FASB issued ASU No. 2018-11, “Leases - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company expects to elect both transition options. ASU 2018-11 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the FASB Concepts Statement, “Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements”. In accordance with the Concepts Statement, this ASU removes, modifies and adds select disclosure requirements under Topic 820 after consideration of costs and benefits. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 for public entities, with early adoption permitted. The adoption of this guidance on January 1, 2020 is not expected to have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-15 Intangibles – Goodwill and Other–Internal-Use Software (Subtopic 350-40): “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. ASU 2018-15 requires that a customer in a hosting arrangement that is a service contract follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize and which costs to expense, as well as requiring costs that cannot be capitalized to be expensed over the term of the hosting arrangement. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 for public entities, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance on January 1, 2020 is not expected to have a material effect on the operating results or financial position of the Company. Refer to Note 1 to the Company’s consolidated financial statements included in the 2017 Annual Report on Form 10-K and the Quarterly Report on Form 10-Q for the periods ended March 31, 2018 and June 30, 2018 for a discussion of additional accounting guidance applicable to the Company that will be adopted in future periods and accounting guidance adopted by the Company during those periods.

Other comprehensive loss (Table

Other comprehensive loss (Tables)	9 Months Ended
	Sep. 30, 2018
Other comprehensive loss
Schedule of components of accumulated other comprehensive loss	September 30, 2018 December 31, 2017 Net unrealized loss on investment securities available-for-sale $ (5,631) $ (1,237) Income tax (1,183) (260) Net of income taxes (4,448) (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 $ (9,684) $ (6,213)
Schedule of other comprehensive income (loss) and related tax effects	Three Months Ended September 30, 2018 2017 Unrealized loss on investment securities available-for-sale $ (1,179) $ (381) Net gain on the sale of investment securities available-for-sale Other comprehensive loss before taxes (1,179) (381) Income tax (248) (133) Other comprehensive loss $ (931) $ (248) Nine Months Ended September 30, 2018 2017 Unrealized (loss) gain on investment securities available-for-sale $ (4,394) $ 1,076 Net gain on the sale of investment securities available-for-sale Other comprehensive (loss) income before taxes (4,394) 1,076 Income tax (925) 377 Other comprehensive (loss) income $ (3,469) $ 699

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2018
Earnings per share
Schedule of earnings per share	2018 2017 For the Three Months Ended September 30, Basic Diluted Basic Diluted Net Income $ 6,717 $ 6,717 $ 5,350 $ 5,350 Average common shares outstanding 7,399,054 7,399,054 7,396,505 7,396,505 Earnings per share $ 0.91 $ 0.91 $ 0.72 $ 0.72 2018 2017 For the Nine Months Ended September 30 Basic Diluted Basic Diluted Net Income $ 18,528 $ 18,528 $ 15,809 $ 15,809 Average common shares outstanding 7,397,373 7,397,373 7,395,612 7,395,612 Earnings per share $ 2.50 $ 2.50 $ 2.14 $ 2.14

Investment securities (Tables)

Investment securities (Tables)	9 Months Ended
	Sep. 30, 2018
Schedule of amortized cost and fair value of investment securities aggregated by investment category	Gross Gross Amortized Unrealized Unrealized Fair September 30, 2018 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 25,941 $ 711 $ 25,230 U.S. Government-sponsored enterprises 95,089 3,317 91,772 State and municipals: Taxable 13,576 $ 237 13,813 Tax-exempt 90,535 495 1,061 89,969 Residential Mortgage-backed securities: U.S. Government agencies 13,719 134 13,585 U.S. Government-sponsored enterprises 35,284 1 811 34,474 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,281 330 5,951 Total $ 280,425 $ 733 $ 6,364 $ 274,794 Held-to-maturity: Tax-exempt state and municipals $ 6,856 $ 2 $ 185 $ 6,673 Residential Mortgage-backed securities: U.S. Government agencies 45 45 U.S. Government-sponsored enterprises 1,650 72 5 1,717 Total $ 8,551 $ 74 $ 190 $ 8,435 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 Total $ 273,742 $ 1,666 $ 2,906 $ 272,502 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 September 30, 2018 Value Losses Value Losses Value Losses U.S. Treasury securities $ 8,711 $ 169 $ 16,519 $ 542 $ 25,230 $ 711 U.S. Government-sponsored enterprises 16,813 337 74,959 2,980 91,772 3,317 State and municipals: Tax-exempt 52,220 893 14,529 353 66,749 1,246 Residential Mortgage-backed securities: U.S. Government agencies 6,423 33 7,162 101 13,585 134 U.S. Government-sponsored enterprises 21,705 322 13,261 494 34,966 816 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 5,951 330 5,951 330 Total $ 105,872 $ 1,754 $ 132,381 $ 4,800 $ 238,253 $ 6,554 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 and nine months ended September 30, 2018 (in thousands): Three months ended Nine months ended September 30, 2018 September 30, 2018 September 30, 2018 Net gains recognized during the period on equity securities $ 14 $ 14 Less: Net gains and (losses) recognized during the period on equity securities sold during the period Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 14 $ 14
Available-for-Sale Securities.
Schedule of maturity distribution of fair value	Fair September 30, 2018 Value Within one year $ 34,805 After one but within five years 156,767 After five but within ten years 16,149 After ten years 13,063 220,784 Mortgage-backed securities 54,010 Total $ 274,794
Held-to-maturity Securities.
Schedule of maturity distribution of fair value	Amortized Fair September 30, 2018 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,856 $ 6,673 6,856 6,673 Mortgage-backed securities 1,695 1,762 Total $ 8,551 $ 8,435

Loans, net and allowance for _2

Loans, net and allowance for loan losses (Tables)	9 Months Ended
	Sep. 30, 2018
Loans, net and allowance for loan losses
Schedule of major classifications of loans outstanding	September 30, 2018 December 31, 2017 Commercial $ 478,128 $ 476,199 Real estate: Commercial 881,071 786,210 Residential 297,819 287,935 Consumer 122,427 142,721 Total $ 1,779,445 $ 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 and nine months ended September 30, 2018 and 2017 are summarized as follows: Real estate September 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance July 1, 2018 $ 5,749 $ 7,506 $ 4,962 $ 1,356 $ 19,573 Charge-offs (148) (63) (117) (328) Recoveries 12 26 13 67 118 Provisions 289 536 164 61 1,050 Ending balance $ 5,902 $ 8,005 $ 5,139 $ 1,367 $ 20,413 Real estate September 30, 2017 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance July 1, 2017 $ 4,426 $ 6,587 $ 5,196 $ 1,593 $ 17,802 Charge-offs (17) (82) (169) (268) Recoveries 3 41 4 49 97 Provisions 358 566 175 101 1,200 Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ 18,831 Real estate September 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2018 $ 5,052 $ 7,548 $ 4,980 1,380 18,960 Charge-offs (150) (1,232) (381) (389) (2,152) Recoveries 128 83 80 164 455 Provisions 872 1,606 460 212 3,150 Ending balance $ 5,902 $ 8,005 $ 5,139 $ 1,367 $ 20,413 Real estate September 30, 2017 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2017 $ 3,799 $ 5,847 $ 4,707 $ 1,608 $ 15,961 Charge-offs (49) (367) (105) (489) (1,010) Recoveries 16 96 30 138 280 Provisions 1,004 1,618 661 317 3,600 Ending balance $ 4,770 $ 7,194 $ 5,293 $ 1,574 $ 18,831 The allocation of the allowance for loan losses and the related loans by major classifications of loans at September 30, 2018 and December 31, 2017 is summarized as follows: Real estate September 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 5,902 $ 8,005 $ 5,139 $ 1,367 $ 20,413 Ending balance: individually evaluated for impairment 93 462 362 14 931 Ending balance: collectively evaluated for impairment 5,809 7,543 4,777 1,353 19,482 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ Loans receivable: Ending balance $ 478,128 $ 881,071 $ 297,819 $ 122,427 $ 1,779,445 Ending balance: individually evaluated for impairment 1,996 4,538 3,651 156 10,341 Ending balance: collectively evaluated for impairment 475,833 875,988 294,141 122,271 1,768,233 Ending balance: loans acquired with deteriorated credit quality $ 299 $ 545 $ 27 $ $ 871 Real estate December 31, 2017 Commercial Commercial Residential Consumer 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 September 30, 2018 Pass Mention Substandard Doubtful Total Commercial $ 473,685 $ 1,542 $ 2,901 $ $ 478,128 Real estate: Commercial 856,513 11,920 12,638 881,071 Residential 292,530 361 4,928 297,819 Consumer 122,210 217 122,427 Total $ 1,744,938 $ 13,823 $ 20,684 $ $ 1,779,445 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	September 30, 2018 December 31, 2017 Commercial $ 808 $ 860 Real estate: Commercial 4,214 3,821 Residential 2,565 2,994 Consumer 156 177 Total $ 7,743 $ 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 September 30, 2018 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 218 $ $ 808 $ 1,026 $ 477,102 $ 478,128 Real estate: Commercial 1,681 104 4,288 6,073 874,998 881,071 74 Residential 1,774 531 3,075 5,380 292,439 297,819 $ 510 Consumer 527 420 156 1,103 121,324 122,427 Total $ 4,200 $ 1,055 $ 8,327 $ 13,582 $ 1,765,863 $ 1,779,445 $ 584 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	This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income September 30, 2018 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 1,356 $ 1,538 $ 1,269 $ 17 $ 1,257 $ 50 Real estate: Commercial 3,414 3,666 3,143 5 3,036 20 Residential 2,366 3,003 2,256 7 2,249 15 Consumer 142 149 101 131 Total 7,278 8,356 6,769 29 6,673 85 With an allowance recorded: Commercial 939 1,086 93 1,020 7 1,089 23 Real estate: Commercial 1,669 1,774 462 1,712 8 1,807 18 Residential 1,312 1,508 362 1,369 5 1,456 13 Consumer 14 14 14 9 11 Total 3,934 4,382 931 4,110 20 4,363 54 Total impaired loans Commercial 2,295 2,624 93 2,289 24 2,346 73 Real estate: Commercial 5,083 5,440 462 4,855 13 4,843 38 Residential 3,678 4,511 362 3,625 12 3,705 28 Consumer 156 163 14 110 142 Total $ 11,212 $ 12,738 $ 931 $ 10,879 $ 49 $ 11,036 $ 139 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 Total impaired loans 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 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income September 30, 2017 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 2,310 $ 2,455 $ 1,945 $ $ 1,765 $ Real estate: Commercial 2,900 3,192 2,979 3,009 Residential 2,303 2,727 2,193 2,235 Consumer 171 183 180 175 Total 7,684 8,557 7,297 38 7,184 92 With an allowance recorded: Commercial 833 910 $ 436 783 943 Real estate: Commercial 1,807 2,073 631 1,673 6 2,402 13 Residential 1,425 1,663 616 1,330 8 1,270 22 Consumer 23 23 23 34 23 Total 4,088 4,669 1,706 3,820 14 4,638 35 Total impaired loans Commercial 3,143 3,365 436 2,728 28 2,708 63 Real estate: Commercial 4,707 5,265 631 4,652 12 5,411 32 Residential 3,728 4,390 616 3,523 12 3,505 32 Consumer 194 206 23 214 198 Total $ 11,772 $ 13,226 $ 1,706 $ 11,117 $ 52 $ 11,822 $ 127

Other assets (Tables)

Other assets (Tables)	9 Months Ended
	Sep. 30, 2018
Other assets
Schedule of components of other assets	September 30, 2018 December 31, 2017 Other real estate owned $ 342 $ 284 Investment in low income housing partnership 7,493 7,842 Mortgage servicing rights 731 728 Bank owned life insurance 34,100 33,836 Restricted equity securities 7,827 8,562 Net deferred tax asset 4,828 3,906 Other assets 9,252 9,311 Total $ 64,573 $ 64,469

Fair value estimates (Tables)

Fair value estimates (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2018 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 25,230 $ 25,230 $ U.S. Government-sponsored enterprises 91,772 $ 91,772 State and Municipals: Taxable 13,813 13,813 Tax-exempt 89,969 89,969 Mortgage-backed securities: U.S. Government agencies 13,585 13,585 U.S. Government-sponsored enterprises 40,425 40,425 Common equity securities 291 291 Interest rate swap-other assets 864 864 Interest rate swap-other liabilities (841) (841) Total $ 275,108 $ 25,521 $ 249,587 $ 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 September 30, 2018 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,003 $ 3,003 Other real estate owned $ 342 $ 342 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 September 30, 2018 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,003 Appraisal of collateral Appraisal adjustments 1.3% to 97.0% (55.9)% Liquidation expenses 3.0% to 6.0% (4.9)% Other real estate owned $ 342 Appraisal of collateral Appraisal adjustments 26.0% to 73.3% (31.8)% 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 September 30, 2018 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 40,595 $ 40,595 $ 40,595 Investment securities: Available-for-sale 274,794 274,794 25,230 $ 249,564 Common equity securities 291 291 291 Held-to-maturity 8,551 8,435 8,435 Loans held for sale 98 98 98 Net loans 1,759,032 1,706,913 $ 1,706,913 Accrued interest receivable 6,565 6,565 6,565 Mortgage servicing rights 731 1,645 1,645 Restricted equity securities 7,827 7,827 7,827 Interest rate swaps 864 864 864 Total $ 2,099,348 $ 2,048,027 Financial liabilities: Deposits $ 1,827,864 $ 1,822,365 $ 1,822,365 Short-term borrowings 99,450 99,450 99,450 Long-term debt 48,461 48,487 48,487 Accrued interest payable 745 745 745 Interest rate swaps 841 841 841 Total $ 1,977,361 $ 1,971,888 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 Interest rate swaps 655 655 655 Total $ 2,010,402 $ 1,982,772 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 (Tables)

Employee benefit plans (Tables)	9 Months Ended
	Sep. 30, 2018
Employee benefit plans
Schedule of components of net periodic benefit cost	Pension Benefits Three Months Ended September 30, 2018 2017 Components of net periodic pension cost: Interest cost $ 233 $ 217 Expected return on plan assets (360) (305) Amortization of unrecognized net gain 73 65 Net periodic other benefit cost $ (54) $ (23) Pension Benefits Nine Months Ended September 30, 2018 2017 Components of net periodic pension cost: Interest cost $ 389 $ 433 Expected return on plan assets (600) (610) Amortization of unrecognized net gain 122 130 Net periodic other benefit cost $ (89) $ (47)

Derivatives and hedging activ_2

Derivatives and hedging activities (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2018 As of December 31, 2017 As of September 30, 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 $ 864 Other Assets $ 655 Other Liabilities $ 841 Other Liabilities $ 733 Total derivatives not designated as hedging instruments $ 864 $ 655 $ 841 $ 733
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Gain or Amount of Gain or Amount of Gain or Amount of Gain or (Loss) Recognized in (Loss) Recognized in (Loss) Recognized in (Loss) Recognized in Location of Gain or (Loss) Income Income Income Income Recognized in Income on Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments Derivative September 30, 2018 September 30, 2018 September 30, 2017 September 30, 2017 Interest Rate Products Other non-interest income $ 18 $ 103 $ (55) $ (55)

Short-term borrowings (Tables)

Short-term borrowings (Tables)	9 Months Ended
	Sep. 30, 2018
Short-term borrowings
Summary of short-term borrowings	At and for the nine months ended September 30, 2018 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at Balance Balance Balance the nine months ended September 30, 2018 30-Sep-18 FHLB advances $ 99,450 $ 153,669 $ 189,275 2.02 % 2.38 % At and for the year ended December 31, 2017 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 123,675 $ 76,846 $ 123,675 1.17 % 1.54 %

Summary of significant accoun_3

Summary of significant accounting policies - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)Office
Summary of significant accounting policies
Number of full-service community banking offices | Office	27
Minimum lease payments due | $	$ 4,555

Summary of significant accoun_4

Summary of significant accounting policies - Income Taxes (Details)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Summary of significant accounting policies
Federal statutory rate	19.40%	11.80%	21.00%	21.00%	35.00%

Other comprehensive loss - Comp

Other comprehensive loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Other comprehensive loss
Net unrealized loss on investment securities available-for-sale	$ (5,631)	$ (1,237)
Income tax	(1,183)	(260)
Net of income taxes	(4,448)	(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	$ (9,684)	$ (6,213)

Other comprehensive loss - Othe

Other comprehensive loss - Other Comprehensive Loss and Related Tax Effects (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other comprehensive loss
Unrealized (loss) gain on investment securities available-for-sale	$ (1,179)	$ (381)	$ (4,394)	$ 1,076
Other comprehensive (loss) gain before taxes	(1,179)	(381)	(4,394)	1,076
Income tax	(248)	(133)	(925)	377
Other comprehensive (loss) income, net of income taxes	$ (931)	$ (248)	$ (3,469)	$ 699

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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings per share
Net Income, Basic	$ 6,717	$ 5,350	$ 18,528	$ 15,809
Average common shares outstanding, Basic	7,399,054	7,396,505	7,397,373	7,395,612
Earnings per share, Basic	$ 0.91	$ 0.72	$ 2.50	$ 2.14
Net Income, Diluted	$ 6,717	$ 5,350	$ 18,528	$ 15,809
Average common shares outstanding, Diluted	7,399,054	7,396,505	7,397,373	7,395,612
Earnings per share, Diluted	$ 0.91	$ 0.72	$ 2.50	$ 2.14

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2018
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	$ 273,742
Available-for-sale, Gross Unrealized Gains	1,666
Available-for-sale, Gross Unrealized Losses	2,906
Available-for-sale, Fair Value	272,502
Available-for-sale, Amortized Cost		$ 280,425
Available-for-sale, Gross Unrealized Gains		733
Available-for-sale, Gross Unrealized Losses		6,364
Available-for-sale, Fair Value	272,502	274,794
Held-to-maturity, Amortized Cost	9,274	8,551
Held-to-maturity, Gross Unrealized Gains	290	74
Held-to-maturity, Gross Unrealized Losses	17	190
Held-to-maturity, Fair value	9,547	8,435
Equity investments carried at fair value	46	291
Net unrealized gains recognized in AOCI	3
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		13,719
Available-for-sale, Gross Unrealized Losses		134
Available-for-sale, Fair Value		13,585
Held-to-maturity, Amortized Cost	54	45
Held-to-maturity, Fair value	54	45
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		35,284
Available-for-sale, Gross Unrealized Gains		1
Available-for-sale, Gross Unrealized Losses		811
Available-for-sale, Fair Value		34,474
Held-to-maturity, Amortized Cost	2,361	1,650
Held-to-maturity, Gross Unrealized Gains	138	72
Held-to-maturity, Gross Unrealized Losses	4	5
Held-to-maturity, Fair value	2,495	1,717
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		6,281
Available-for-sale, Gross Unrealized Losses		330
Available-for-sale, Fair Value		5,951
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		95,089
Available-for-sale, Gross Unrealized Losses		3,317
Available-for-sale, Fair Value		91,772
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		25,941
Available-for-sale, Gross Unrealized Losses		711
Available-for-sale, Fair Value		25,230
Common equity securities.
Schedule of Trading Securities and Other Trading Assets
Equity investments carried at fair value	46	291
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		13,576
Available-for-sale, Gross Unrealized Gains		237
Available-for-sale, Fair Value		13,813
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		90,535
Available-for-sale, Gross Unrealized Gains		495
Available-for-sale, Gross Unrealized Losses		1,061
Available-for-sale, Fair Value		89,969
Held-to-maturity, Amortized Cost	6,859	6,856
Held-to-maturity, Gross Unrealized Gains	152	2
Held-to-maturity, Gross Unrealized Losses	13	185
Held-to-maturity, Fair value	$ 6,998	$ 6,673

Investment securities - Unreali

Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Investment securities
Net gains recognized during the period on equity securities	$ 14	$ 14
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date	$ 14	$ 14

Investment securities - Restric

Investment securities - Restricted Investment In Stock (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)shares	Dec. 31, 2017USD ($)
Other-than-temporary impairments recognized	$ 0
Value of common stock	$ 14,798	$ 14,793
Visa Class A stock
Conversion ratio of common stock	1.6298
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	7,785	$ 8,520
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	Sep. 30, 2018USD ($)
Investment securities
Within one year	$ 34,805
After one but within five years	156,767
After five but within ten years	16,149
After ten years	13,063
Available for sale securities	220,784
Mortgage-backed securities	$ 54,010

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After ten years, Held to maturity	$ 6,856
Amortized Cost, Held to maturity	6,856
Amortized Cost, Mortgage-backed securities, Held to maturity	1,695
Held-to-maturity, Amortized Cost	8,551	$ 9,274
Fair Value of Held-to-maturity Securities
Fair Value, After ten years, Held to maturity	6,673
Fair Value, Held to maturity	6,673
Fair Value, Mortgage-backed securities, Held to maturity	1,762
Held to maturity, Fair Value	$ 8,435	$ 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	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	$ 105,872	$ 139,450
12 Months or More, Fair Value	132,381	68,109
Less Than 12 Months, Unrealized Losses	1,754	1,331
12 Months or More, Unrealized Losses	4,800	1,592
Total, Fair Value	238,253	207,559
Total, Unrealized Losses	6,554	2,923
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	52,220	54,788
12 Months or More, Fair Value	14,529	3,808
Less Than 12 Months, Unrealized Losses	893	454
12 Months or More, Unrealized Losses	353	61
Total, Fair Value	66,749	58,596
Total, Unrealized Losses	1,246	515
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	8,711	17,350
12 Months or More, Fair Value	16,519	2,464
Less Than 12 Months, Unrealized Losses	169	170
12 Months or More, Unrealized Losses	542	58
Total, Fair Value	25,230	19,814
Total, Unrealized Losses	711	228
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	16,813	39,096
12 Months or More, Fair Value	74,959	51,365
Less Than 12 Months, Unrealized Losses	337	445
12 Months or More, Unrealized Losses	2,980	1,295
Total, Fair Value	91,772	90,461
Total, Unrealized Losses	3,317	1,740
Mortgage-backed Securities, U.S. Government agencies
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	6,423	9,484
12 Months or More, Fair Value	7,162	3,968
Less Than 12 Months, Unrealized Losses	33	39
12 Months or More, Unrealized Losses	101	46
Total, Fair Value	13,585	13,452
Total, Unrealized Losses	134	85
Commercial mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	21,705	6,195
12 Months or More, Fair Value	13,261
Less Than 12 Months, Unrealized Losses	322	120
12 Months or More, Unrealized Losses	494
Total, Fair Value	34,966	6,195
Total, Unrealized Losses	816	120
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		12,537
12 Months or More, Fair Value	5,951	6,504
Less Than 12 Months, Unrealized Losses		103
12 Months or More, Unrealized Losses	330	132
Total, Fair Value	5,951	19,041
Total, Unrealized Losses	$ 330	$ 235

Investment securities - Additio

Investment securities - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Sep. 30, 2018USD ($)security	Dec. 31, 2017USD ($)
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged					us-gaap:AssetPledgedAsCollateralMember	us-gaap:AssetPledgedAsCollateralMember
Number of investment securities held					209
Other-than-temporary impairments recognized | $					$ 0
Collateral Pledged
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged | $					$ 164,516	$ 163,936
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Number of investment securities held					118
Number of securities in continuous unrealized loss positions 12 months or longer					23
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					38
Number of securities in continuous unrealized loss positions 12 months or longer					30
Other-than-temporary impairments recognized | $	$ 0	$ 0	$ 0	$ 0
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Number of investment securities held					44
Number of securities in continuous unrealized loss positions 12 months or longer					28
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Number of investment securities held					9
Number of securities in continuous unrealized loss positions 12 months or longer					6

Loans, net and allowance for _3

Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans, net and allowance for loan losses
Net deferred loan costs	$ 930	$ 575

Loans, net and allowance for _4

Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,779,445	$ 1,693,065
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	478,128	476,199
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	881,071	786,210
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	297,819	287,935
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 122,427	$ 142,721

Loans, net and allowance for _5

Loans, net and allowance for loan losses - Changes in Allowance for Loan Losses Account by Major Classification of Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Dec. 31, 2017
Allowance for loan losses:
Beginning Balance	$ 19,573	$ 17,802	$ 18,960	$ 15,961
Charge-offs	(328)	(268)	(2,152)	(1,010)
Recoveries	118	97	455	280
Provisions	1,050	1,200	3,150	3,600
Ending balance	20,413	18,831	20,413	18,831
Beginning Balance	19,573	17,802	18,960	15,961
Ending balance: individually evaluated for impairment					$ 931	$ 766
Charge-offs	(328)	(268)	(2,152)	(1,010)
Ending balance: collectively evaluated for impairment					19,482	18,194
Recoveries	118	97	455	280
Ending balance: loans acquired with deteriorated credit quality	19,573	17,802	18,960	15,961	20,413	18,960
Provisions	1,050	1,200	3,150	3,600
Loans receivable:
Total Loans					1,779,445	1,693,065
Ending balance: individually evaluated for impairment					10,341	9,705
Ending balance: collectively evaluated for impairment					1,768,233	1,682,343
Total Loans					1,779,445	1,693,065
Ending balance	20,413	18,831	20,413	18,831
Ending balance: individually evaluated for impairment					10,341	9,705
Ending balance: collectively evaluated for impairment					1,768,233	1,682,343
Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance					871	1,017
Ending balance					871	1,017
Commercial
Allowance for loan losses:
Beginning Balance	5,749	4,426	5,052	3,799
Charge-offs	(148)	(17)	(150)	(49)
Recoveries	12	3	128	16
Provisions	289	358	872	1,004
Ending balance	5,902	4,770	5,902	4,770
Beginning Balance	5,749	4,426	5,052	3,799
Ending balance: individually evaluated for impairment					93	159
Charge-offs	(148)	(17)	(150)	(49)
Ending balance: collectively evaluated for impairment					5,809	4,893
Recoveries	12	3	128	16
Ending balance: loans acquired with deteriorated credit quality	5,749	4,426	5,052	3,799	5,902	5,052
Provisions	289	358	872	1,004
Loans receivable:
Total Loans					478,128	476,199
Ending balance: individually evaluated for impairment					1,996	2,121
Ending balance: collectively evaluated for impairment					475,833	473,736
Total Loans					478,128	476,199
Ending balance	5,902	4,770	5,902	4,770
Ending balance: individually evaluated for impairment					1,996	2,121
Ending balance: collectively evaluated for impairment					475,833	473,736
Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance					299	342
Ending balance					299	342
Real estate Commercial
Allowance for loan losses:
Beginning Balance	7,506	6,587	7,548	5,847
Charge-offs	(63)		(1,232)	(367)
Recoveries	26	41	83	96
Provisions	536	566	1,606	1,618
Ending balance	8,005	7,194	8,005	7,194
Beginning Balance	7,506	6,587	7,548	5,847
Ending balance: individually evaluated for impairment					462	263
Charge-offs	(63)		(1,232)	(367)
Ending balance: collectively evaluated for impairment					7,543	7,285
Recoveries	26	41	83	96
Ending balance: loans acquired with deteriorated credit quality	7,506	6,587	7,548	5,847	8,005	7,548
Provisions	536	566	1,606	1,618
Loans receivable:
Total Loans					881,071	786,210
Ending balance: individually evaluated for impairment					4,538	3,644
Ending balance: collectively evaluated for impairment					875,988	781,921
Total Loans					881,071	786,210
Ending balance	8,005	7,194	8,005	7,194
Ending balance: individually evaluated for impairment					4,538	3,644
Ending balance: collectively evaluated for impairment					875,988	781,921
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance					545	645
Ending balance					545	645
Real estate Residential
Allowance for loan losses:
Beginning Balance	4,962	5,196	4,980	4,707
Charge-offs		(82)	(381)	(105)
Recoveries	13	4	80	30
Provisions	164	175	460	661
Ending balance	5,139	5,293	5,139	5,293
Beginning Balance	4,962	5,196	4,980	4,707
Ending balance: individually evaluated for impairment					362	336
Charge-offs		(82)	(381)	(105)
Ending balance: collectively evaluated for impairment					4,777	4,644
Recoveries	13	4	80	30
Ending balance: loans acquired with deteriorated credit quality	4,962	5,196	4,980	4,707	5,139	4,980
Provisions	164	175	460	661
Loans receivable:
Total Loans					297,819	287,935
Ending balance: individually evaluated for impairment					3,651	3,763
Ending balance: collectively evaluated for impairment					294,141	284,142
Total Loans					297,819	287,935
Ending balance	5,139	5,293	5,139	5,293
Ending balance: individually evaluated for impairment					3,651	3,763
Ending balance: collectively evaluated for impairment					294,141	284,142
Real estate Residential | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance					27	30
Ending balance					27	30
Real estate Residential
Loans receivable:
Total Loans					297,819	287,935
Total Loans					297,819	287,935
Consumer
Allowance for loan losses:
Beginning Balance	1,356	1,593	1,380	1,608
Charge-offs	(117)	(169)	(389)	(489)
Recoveries	67	49	164	138
Provisions	61	101	212	317
Ending balance	1,367	1,574	1,367	1,574
Beginning Balance	1,356	1,593	1,380	1,608
Ending balance: individually evaluated for impairment					14	8
Charge-offs	(117)	(169)	(389)	(489)
Ending balance: collectively evaluated for impairment					1,353	1,372
Recoveries	67	49	164	138
Ending balance: loans acquired with deteriorated credit quality	1,356	1,593	1,380	1,608	1,367	1,380
Provisions	61	101	212	317
Loans receivable:
Total Loans					122,427	142,721
Ending balance: individually evaluated for impairment					156	177
Ending balance: collectively evaluated for impairment					122,271	142,544
Total Loans					122,427	142,721
Ending balance	$ 1,367	$ 1,574	$ 1,367	$ 1,574
Ending balance: individually evaluated for impairment					156	177
Ending balance: collectively evaluated for impairment					$ 122,271	$ 142,544

Loans, net and allowance for _6

Loans, net and allowance for loan losses - Allocation of Allowance for Loan Losses and Related Loans by Major Classification of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Allowance for loan losses:
Ending balance	$ 20,413	$ 19,573	$ 18,960	$ 18,831	$ 17,802	$ 15,961
Ending balance: individually evaluated for impairment	931		766
Ending balance: collectively evaluated for impairment	19,482		18,194
Loans receivable:
Ending balance	1,779,445		1,693,065
Ending balance: individually evaluated for impairment	10,341		9,705
Ending balance: collectively evaluated for impairment	1,768,233		1,682,343
Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	871		1,017
Commercial
Allowance for loan losses:
Ending balance	5,902	5,749	5,052	4,770	4,426	3,799
Ending balance: individually evaluated for impairment	93		159
Ending balance: collectively evaluated for impairment	5,809		4,893
Loans receivable:
Ending balance	478,128		476,199
Ending balance: individually evaluated for impairment	1,996		2,121
Ending balance: collectively evaluated for impairment	475,833		473,736
Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	299		342
Real estate Commercial
Allowance for loan losses:
Ending balance	8,005	7,506	7,548	7,194	6,587	5,847
Ending balance: individually evaluated for impairment	462		263
Ending balance: collectively evaluated for impairment	7,543		7,285
Loans receivable:
Ending balance	881,071		786,210
Ending balance: individually evaluated for impairment	4,538		3,644
Ending balance: collectively evaluated for impairment	875,988		781,921
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	545		645
Real estate Residential
Allowance for loan losses:
Ending balance	5,139	4,962	4,980	5,293	5,196	4,707
Ending balance: individually evaluated for impairment	362		336
Ending balance: collectively evaluated for impairment	4,777		4,644
Loans receivable:
Ending balance	297,819		287,935
Ending balance: individually evaluated for impairment	3,651		3,763
Ending balance: collectively evaluated for impairment	294,141		284,142
Real estate Residential | Loans Acquired with Deteriorated Credit Quality
Loans receivable:
Ending balance	27		30
Consumer
Allowance for loan losses:
Ending balance	1,367	$ 1,356	1,380	$ 1,574	$ 1,593	$ 1,608
Ending balance: individually evaluated for impairment	14		8
Ending balance: collectively evaluated for impairment	1,353		1,372
Loans receivable:
Ending balance	122,427		142,721
Ending balance: individually evaluated for impairment	156		177
Ending balance: collectively evaluated for impairment	$ 122,271		$ 142,544

Loans, net and allowance for _7

Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,779,445	$ 1,693,065
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	478,128	476,199
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	881,071	786,210
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	297,819	287,935
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	297,819	287,935
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	122,427	142,721
Pass
Accounts, Notes, Loans and Financing Receivable
Loans, net	1,744,938	1,661,496
Pass | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	473,685	472,185
Pass | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	856,513	764,320
Pass | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	292,530	282,484
Pass | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	122,210	142,507
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans, net	13,823	14,991
Special Mention | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	1,542	1,958
Special Mention | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	11,920	13,015
Special Mention | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	361	18
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans, net	20,684	16,578
Substandard | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	2,901	2,056
Substandard | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	12,638	8,875
Substandard | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	4,928	5,433
Substandard | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 217	$ 214

Loans, net and allowance for _8

Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 7,743	$ 7,852
Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	808	860
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	4,214	3,821
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	2,565	2,994
Consumer
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 156	$ 177

Loans, net and allowance for _9

Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 13,582	$ 14,993
Current	1,765,863	1,678,072
Total Loans	1,779,445	1,693,065
Loans > 90 Days and Accruing	584	735
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,200	4,081
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,055	2,325
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	8,327	8,587
Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,026	1,200
Current	477,102	474,999
Total Loans	478,128	476,199
Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	218	124
Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		216
Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	808	860
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	6,073	5,737
Current	874,998	780,473
Total Loans	881,071	786,210
Loans > 90 Days and Accruing	74
Real estate Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,681	1,722
Real estate Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	104	194
Real estate Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,288	3,821
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Loans	297,819	287,935
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	5,380	6,228
Current	292,439	281,707
Total Loans	297,819	287,935
Loans > 90 Days and Accruing	510	549
Real estate Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,774	1,134
Real estate Residential | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	531	1,551
Real estate Residential | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,075	3,543
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,103	1,828
Current	121,324	140,893
Total Loans	122,427	142,721
Loans > 90 Days and Accruing		186
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	527	1,101
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	420	364
Consumer | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 156	$ 363

Loans, net and allowance for_10

Loans, net and allowance for loan losses - Summarized Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 7,278	$ 7,684	$ 7,278	$ 7,684	$ 6,532
Unpaid Principal Balance, With no related allowance, Total	8,356	8,557	8,356	8,557	7,482
Average Recorded Investment, With no related allowance, Total	6,769	7,297	6,673	7,184	7,053
Interest Income Recognized, With no related allowance, Total	29	38	85	92	88
Recorded Investment, With an allowance recorded, Total	3,934	4,088	3,934	4,088	4,190
Unpaid Principal Balance, With an allowance recorded, Total	4,382	4,669	4,382	4,669	4,481
Related Allowance, With an allowance recorded, Total	931	1,706	931	1,706	766
Average Recorded Investment, With an allowance recorded, Total	4,110	3,820	4,363	4,638	4,548
Interest Income Recognized, With an allowance recorded, Total	20	14	54	35	91
Recorded Investment, Total	11,212	11,772	11,212	11,772	10,722
Unpaid Principal Balance, Total	12,738	13,226	12,738	13,226	11,963
Related Allowance, With an allowance recorded, Total	931	1,706	931	1,706	766
Average Recorded Investment, Total	10,879	11,117	11,036	11,822	11,601
Interest Income Recognized, Total	49	52	139	127	179
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	1,356	2,310	1,356	2,310	1,279
Unpaid Principal Balance, With no related allowance, Total	1,538	2,455	1,538	2,455	1,439
Average Recorded Investment, With no related allowance, Total	1,269	1,945	1,257	1,765	1,668
Interest Income Recognized, With no related allowance, Total	17	28	50	63	43
Recorded Investment, With an allowance recorded, Total	939	833	939	833	1,184
Unpaid Principal Balance, With an allowance recorded, Total	1,086	910	1,086	910	1,218
Related Allowance, With an allowance recorded, Total	93	436	93	436	159
Average Recorded Investment, With an allowance recorded, Total	1,020	783	1,089	943	991
Interest Income Recognized, With an allowance recorded, Total	7		23		50
Recorded Investment, Total	2,295	3,143	2,295	3,143	2,463
Unpaid Principal Balance, Total	2,624	3,365	2,624	3,365	2,657
Related Allowance, With an allowance recorded, Total	93	436	93	436	159
Average Recorded Investment, Total	2,289	2,728	2,346	2,708	2,659
Interest Income Recognized, Total	24	28	73	63	93
Real estate Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	3,414	2,900	3,414	2,900	2,888
Unpaid Principal Balance, With no related allowance, Total	3,666	3,192	3,666	3,192	3,190
Average Recorded Investment, With no related allowance, Total	3,143	2,979	3,036	3,009	2,985
Interest Income Recognized, With no related allowance, Total	5	6	20	19	24
Recorded Investment, With an allowance recorded, Total	1,669	1,807	1,669	1,807	1,401
Unpaid Principal Balance, With an allowance recorded, Total	1,774	2,073	1,774	2,073	1,496
Related Allowance, With an allowance recorded, Total	462	631	462	631	263
Average Recorded Investment, With an allowance recorded, Total	1,712	1,673	1,807	2,402	2,202
Interest Income Recognized, With an allowance recorded, Total	8	6	18	13	18
Recorded Investment, Total	5,083	4,707	5,083	4,707	4,289
Unpaid Principal Balance, Total	5,440	5,265	5,440	5,265	4,686
Related Allowance, With an allowance recorded, Total	462	631	462	631	263
Average Recorded Investment, Total	4,855	4,652	4,843	5,411	5,187
Interest Income Recognized, Total	13	12	38	32	42
Real estate Residential
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,366	2,303	2,366	2,303	2,196
Unpaid Principal Balance, With no related allowance, Total	3,003	2,727	3,003	2,727	2,672
Average Recorded Investment, With no related allowance, Total	2,256	2,193	2,249	2,235	2,227
Interest Income Recognized, With no related allowance, Total	7	4	15	10	21
Recorded Investment, With an allowance recorded, Total	1,312	1,425	1,312	1,425	1,597
Unpaid Principal Balance, With an allowance recorded, Total	1,508	1,663	1,508	1,663	1,759
Related Allowance, With an allowance recorded, Total	362	616	362	616	336
Average Recorded Investment, With an allowance recorded, Total	1,369	1,330	1,456	1,270	1,335
Interest Income Recognized, With an allowance recorded, Total	5	8	13	22	23
Recorded Investment, Total	3,678	3,728	3,678	3,728	3,793
Unpaid Principal Balance, Total	4,511	4,390	4,511	4,390	4,431
Related Allowance, With an allowance recorded, Total	362	616	362	616	336
Average Recorded Investment, Total	3,625	3,523	3,705	3,505	3,562
Interest Income Recognized, Total	12	12	28	32	44
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	142	171	142	171	169
Unpaid Principal Balance, With no related allowance, Total	149	183	149	183	181
Average Recorded Investment, With no related allowance, Total	101	180	131	175	173
Recorded Investment, With an allowance recorded, Total	14	23	14	23	8
Unpaid Principal Balance, With an allowance recorded, Total	14	23	14	23	8
Related Allowance, With an allowance recorded, Total	14	23	14	23	8
Average Recorded Investment, With an allowance recorded, Total	9	34	11	23	20
Recorded Investment, Total	156	194	156	194	177
Unpaid Principal Balance, Total	163	206	163	206	189
Related Allowance, With an allowance recorded, Total	14	23	14	23	8
Average Recorded Investment, Total	$ 110	$ 214	$ 142	$ 198	$ 193

Loans, net and allowance for_11

Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)loan	Sep. 30, 2017USD ($)loan	Jun. 30, 2017loan	Jun. 30, 2017loan	Sep. 30, 2018USD ($)loan	Sep. 30, 2017USD ($)loan	Dec. 31, 2017USD ($)
Pre-Modification Outstanding Recorded Investment | $					$ 3,230	$ 3,365	$ 3,074
Number of defaults on loans restructured	0		0	0
Loans modified as troubled debt restructuring | $						$ 1,658
Number of loans modified as troubled debt restructuring		4				6
Credit relationships		2
Real estate Commercial
Loans modified as troubled debt restructuring | $					$ 340
Number of loans modified as troubled debt restructuring					1
Real estate Residential
Number of defaults on loans restructured	1				2
Real estate Residential
Loans modified as troubled debt restructuring | $	$ 6	$ 1,249			$ 64

Other assets - Components of Ot

Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other assets
Other real estate owned	$ 342	$ 284
Investment in low income housing partnership	7,493	7,842
Mortgage servicing rights	731	728
Bank owned life insurance	34,100	33,836
Restricted equity securities	7,827	8,562
Net deferred tax asset	4,828	3,906
Other assets	9,252	9,311
Total	$ 64,573	$ 64,469

Fair value estimates - Schedule

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	$ 275,108	$ 272,470
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	25,230	19,814
U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	91,772	93,648
State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	13,813	15,047
State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	89,969	103,833
Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	13,585	14,434
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	40,425	25,726
Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	291	46
Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	864	655
Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(841)	(733)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	25,521	19,860
Level 1 | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	25,230	19,814
Level 1 | Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	291	46
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	249,587	252,610
Level 2 | U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	91,772	93,648
Level 2 | State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	13,813	15,047
Level 2 | State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	89,969	103,833
Level 2 | Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	13,585	14,434
Level 2 | Mortgage-backed Securities, U.S. Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	40,425	25,726
Level 2 | Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	864	655
Level 2 | Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	$ (841)	$ (733)

Fair value estimates - Schedu_2

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 3,003	$ 3,424
Other real estate owned	342	216
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	3,003	3,424
Other real estate owned	$ 342	$ 216

Fair value estimates - Addition

Fair value estimates - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Level 3 - Nonrecurring Basis - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Other real estate owned
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 342	$ 216
Range and weighted average of appraisal adjustments	31.80%	30.70%
Range and weighted average of liquidation expenses	5.00%	5.00%
Other real estate owned | Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	26.00%	25.00%
Range and weighted average of liquidation expenses	3.00%	3.00%
Other real estate owned | Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	73.30%	41.30%
Range and weighted average of liquidation expenses	6.00%	6.00%
Impaired loans
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 3,003	$ 3,424
Range and weighted average of appraisal adjustments	55.90%	67.20%
Range and weighted average of liquidation expenses	4.90%	4.90%
Impaired loans | Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	1.30%	4.00%
Range and weighted average of liquidation expenses	3.00%	3.00%
Impaired loans | Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	97.00%	97.00%
Range and weighted average of liquidation expenses	6.00%	6.00%

Fair value estimates - Carrying

Fair value estimates - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Investment securities:
Available-for-sale	$ 274,794	$ 272,502
Common equity securities	291	46
Held-to-maturity	8,435	9,547
Loans held for sale	98	106
Mortgage servicing rights	731	728
Other assets	64,573	64,469
Carrying Value
Financial assets:
Cash and cash equivalents	40,595	37,488
Investment securities:
Available-for-sale	274,794	272,548
Common equity securities	291
Held-to-maturity	8,551	9,274
Loans held for sale	98	106
Net loans	1,759,032	1,674,105
Accrued interest receivable	6,565	6,936
Mortgage servicing rights	731	728
Restricted equity securities	7,827	8,562
Interest rate swaps	864	655
Total assets	2,099,348	2,010,402
Financial liabilities:
Deposits	1,827,864	1,719,018
Short-term borrowings	99,450	123,675
Long-term debt	48,461	49,734
Accrued interest payable	745	497
Interest rate swap	841	733
Total liabilities	1,977,361	1,893,657
Fair Value
Financial assets:
Cash and cash equivalents	40,595	37,488
Investment securities:
Available-for-sale	274,794	272,548
Common equity securities	291
Held-to-maturity	8,435	9,547
Loans held for sale	98	106
Net loans	1,706,913	1,645,292
Accrued interest receivable	6,565	6,936
Mortgage servicing rights	1,645	1,638
Restricted equity securities	7,827	8,562
Interest rate swaps	864	655
Total assets	2,048,027	1,982,772
Financial liabilities:
Deposits	1,822,365	1,666,284
Short-term borrowings	99,450	123,675
Long-term debt	48,487	50,147
Accrued interest payable	745	497
Interest rate swap	841	733
Total liabilities	1,971,888	1,841,336
Level 1
Financial assets:
Cash and cash equivalents	40,595	37,488
Investment securities:
Available-for-sale	25,230	19,860
Common equity securities	291
Level 2
Investment securities:
Available-for-sale	249,564	252,688
Held-to-maturity	8,435	9,547
Loans held for sale	98	106
Accrued interest receivable	6,565	6,936
Mortgage servicing rights	1,645	1,638
Restricted equity securities	7,827	8,562
Interest rate swaps	864	655
Financial liabilities:
Deposits	1,822,365	1,666,284
Short-term borrowings	99,450	123,675
Long-term debt	48,487	50,147
Accrued interest payable	745	497
Interest rate swap	841	733
Level 3
Investment securities:
Net loans	$ 1,706,913	$ 1,645,292

Employee benefit plans - Compon

Employee benefit plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net periodic pension cost:
Labor and Related Expense	$ 6,946	$ 6,550	$ 21,291	$ 19,851
Pension Benefits
Net periodic pension cost:
Interest cost	233	217	389	433
Expected return on plan assets	(360)	(305)	(600)	(610)
Amortization of prior service cost	73	65
Amortization of unrecognized net gain			122	130
Net periodic pension cost	$ (54)	$ (23)	$ (89)	$ (47)

Employee benefit plans - Salari

Employee benefit plans - Salaries and Employee Benefits Expense - Profit Sharing (Details) - Retirement Profit Sharing Plan $ in Thousands	3 Months Ended
	Sep. 30, 2018USD ($)
Profit Sharing plan
Company contribution	$ 2,700
Safe harbor contribution	18
Discretionary contributions	92
Future annual premium	$ 0

Employee benefit plans - Additi

Employee benefit plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units awarded			2,548,000	2,362,000
Unrecognized compensation expense	$ 103	$ 53	$ 103	$ 53
Employee Benefit Plans
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	330	311	1,073	982
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 31	41	$ 93	89
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense		$ 52		$ 95
Common stock available for grant as awards	86,994		86,994
Non-Performance-based restricted stock | 2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units awarded					2,020
Number of nonvested restricted stock awards					14,382
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			2,548		342
Number of nonvested restricted stock awards	2,890		2,890
Performance-based restricted stock units | 2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of nonvested restricted stock awards					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			8,920		1,196
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average vesting period			2 years
Restricted Stock | 2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units vesting period					5 years
Unrecognized compensation expense	$ 609		$ 609

Derivatives and hedging activ_3

Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) $ in Thousands	Sep. 30, 2018USD ($)security	Dec. 31, 2017USD ($)security
Interest rate swap.
Derivatives, Fair Value
Number of instruments held | security	6	5
Notional amount	$ 62,657	$ 55,928
Derivatives designated as hedging instruments | Other Assets. | Interest Rate Products
Derivatives, Fair Value
Asset Derivatives	864	655
Derivatives designated as hedging instruments | Other Liabilities | Interest Rate Products
Derivatives, Fair Value
Liability Derivatives	841	733
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives	864	655
Liability Derivatives	$ 841	$ 733

Derivatives and hedging activ_4

Derivatives and hedging activities - Effect of Derivative Instruments on the Income Statement (Details) - Other non-interest income - Interest Rate Products - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Derivative Instruments, Gain (Loss)
Derivatives and hedging activities		$ (55)		$ (55)
Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss)
Derivatives and hedging activities	$ 18		$ 103

Derivatives and hedging activ_5

Derivatives and hedging activities - Credit-risk-related Contingent Features (Details) - Credit-risk contract - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Derivative [Line Items]
Derivative Liability	$ 24	$ 79
Derivative, Collateral, Obligation to Return Cash	$ 100	$ 880

Short-term borrowings - Summary

Short-term borrowings - Summary of Short-term Borrowings (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Short-term Debt
Ending Balance	$ 99,450,000	$ 123,675,000
FHLB advances
Short-term Debt
Ending Balance	99,450	123,675
Average Balance	153,669	76,846
Maximum Month-End Balance	$ 189,275	$ 123,675
Weighted Average Rate for	2.02%	1.17%
Weighted Average Rate at	2.38%	1.54%

Short-term borrowings - Additio

Short-term borrowings - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Short-term Debt
Decrease in borrowings	$ 24,225
Peoples Bank
Short-term Debt
Maximum borrowing capacity	694,115	$ 631,782
Outstanding amount in borrowings	$ 147,811	$ 173,409

Income taxes (Details)

Income taxes (Details)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Income taxes
Federal statutory rate	19.40%	11.80%	21.00%	21.00%	35.00%