Peoples Financial Services (PFIS) 10-Q 7 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Document And Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	PEOPLES FINANCIAL SERVICES CORP.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,399,078
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001056943
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Cash and due from banks:
Cash and due from banks	$ 26,615	$ 32,569
Interest-bearing deposits in other banks	3,347	47
Total cash and due from banks	29,962	32,616
Investment securities:
Available-for-sale	261,665	269,682
Equity investments carried at fair value	283	291
Held-to-maturity: Fair value June 30, 2019, $8,151; December 31, 2018, $8,380	7,969	8,361
Total investment securities	269,917	278,334
Loans, net	1,858,799	1,823,266
Less: allowance for loan losses	21,930	21,379
Net loans	1,836,869	1,801,887
Loans held for sale	831	749
Premises and equipment, net	46,468	38,889
Accrued interest receivable	7,303	7,115
Goodwill	63,370	63,370
Intangible assets, net	1,921	2,296
Other assets	67,625	63,737
Total assets	2,324,266	2,288,993
Deposits:
Noninterest-bearing	419,995	410,260
Interest-bearing	1,456,804	1,464,762
Total deposits	1,876,799	1,875,022
Short-term borrowings	82,700	86,500
Long-term debt	52,980	37,906
Accrued interest payable	1,058	1,195
Other liabilities	19,146	9,756
Total liabilities	2,032,683	2,010,379
Stockholders’ equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,399,078 shares at June 30, 2019 and 7,399,054 shares at December 31, 2018	14,798	14,798
Capital surplus	135,384	135,310
Retained earnings	145,106	136,582
Accumulated other comprehensive loss	(3,705)	(8,076)
Total stockholders’ equity	291,583	278,614
Total liabilities and stockholders’ equity	$ 2,324,266	$ 2,288,993

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position
Held-to-maturity, Fair value	$ 8,151	$ 8,380
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,399,078	7,399,054
Common stock, shares outstanding	7,399,078	7,399,054

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest and fees on loans:
Taxable	$ 20,641	$ 18,239	$ 40,744	$ 35,748
Tax-exempt	1,109	871	2,208	1,741
Interest and dividends on investment securities:
Taxable	1,025	934	2,035	1,792
Tax-exempt	520	661	1,082	1,362
Dividends	22	19	41	35
Interest on interest-bearing deposits in other banks	15	42	23	82
Total interest income	23,332	20,766	46,133	40,760
Interest expense:
Interest on deposits	3,713	1,959	7,124	3,793
Interest on short-term borrowings	595	841	1,408	1,508
Interest on long-term debt	296	315	576	621
Total interest expense	4,604	3,115	9,108	5,922
Net interest income	18,728	17,651	37,025	34,838
Provision for loan losses	350	1,050	1,400	2,100
Net interest income after provision for loan losses	18,378	16,601	35,625	32,738
Noninterest income:
Mortgage banking income	137	162	285	309
Life insurance investment income	192	191	378	378
Net losses (gains) on equity investment securities	(9)	8	(8)
Net gains on sale of investment securities available-for-sale	23		23
Net gain on sale of credit card loans		291		291
Total noninterest income	4,152	3,663	7,568	7,235
Noninterest expense:
Salaries and employee benefits expense	8,037	7,390	15,632	14,345
Net occupancy and equipment expense	2,849	2,720	5,810	5,534
Amortization of intangible assets	182	220	374	450
Professional fees and outside services	525	446	856	1,069
FDIC insurance and assessments	288	297	547	583
Donations	359	343	691	656
Other expenses	2,189	2,080	4,009	3,940
Total noninterest expense	14,429	13,496	27,919	26,577
Income before income taxes	8,101	6,768	15,274	13,396
Income tax expense	957	811	1,718	1,585
Net income	7,144	5,957	13,556	11,811
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available-for-sale	2,611	(839)	5,050	(3,215)
Reclassification adjustment for net gain on sales included in net income	(23)		(23)
Change in derivative fair value	443		506
Other comprehensive gain (loss)	3,031	(839)	5,533	(3,215)
Income tax expense (benefit)	637	(176)	1,162	(677)
Other comprehensive income (loss), net of income taxes	2,394	(663)	4,371	(2,538)
Comprehensive income	$ 9,538	$ 5,294	$ 17,927	$ 9,273
Net income:
Basic	$ 0.96	$ 0.81	$ 1.83	$ 1.60
Diluted	$ 0.96	$ 0.81	$ 1.83	$ 1.60
Average common shares outstanding:
Basic	7,399,302	7,396,533	7,399,178	7,396,519
Diluted	7,399,302	7,396,533	7,399,178	7,396,519
Dividends declared	$ 0.34	$ 0.33	$ 0.68	$ 0.65
Service charges, fees and commissions
Noninterest income:
Revenue from contracts with customers	$ 2,490	$ 1,885	$ 4,489	$ 3,973
Merchant services income
Noninterest income:
Revenue from contracts with customers	457	309	655	559
Commission and fees on fiduciary activities
Noninterest income:
Revenue from contracts with customers	492	485	999	982
Wealth management income
Noninterest income:
Revenue from contracts with customers	$ 370	$ 332	$ 747	$ 743

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, 2017	$ 14,793	$ 135,043	$ 121,353	$ (6,213)	$ 264,976
Net income			11,811		11,811
Other comprehensive income (loss), net of income taxes				(2,538)	(2,538)
Dividends declared			(4,810)		(4,810)
Stock based compensation		105			105
Common stock grants awarded, net of unearned compensation	5	(5)
Balance at Jun. 30, 2018	14,798	135,143	128,356	(8,753)	269,544
Reclassification related to adoption of ASU 2016-01			2	(2)
Balance at Dec. 31, 2018	14,798	135,310	136,582	(8,076)	278,614
Net income			13,556		13,556
Other comprehensive income (loss), net of income taxes				4,371	4,371
Dividends declared			(5,032)		(5,032)
Stock based compensation		240			240
Share retirement	(8)	(158)			(166)
Common stock grants awarded, net of unearned compensation	8	(8)
Balance at Jun. 30, 2019	$ 14,798	$ 135,384	$ 145,106	$ (3,705)	$ 291,583

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity
Dividends declared (in dollars per share)	$ 0.68	$ 0.65
Share retired, shares	3,830
Common stock grants awarded, net of unearned compensation	$ 164	$ 113
Common stock grants awarded, net of unearned compensation (in shares)	3,854	2,548

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)
Cash flows from operating activities:
Net income	$ 13,556	$ 11,811
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	1,227	1,140
Amortization of right-of-use lease asset	187
Amortization of deferred loan costs	(156)	482
Amortization of intangibles	374	450
Amortization of low income housing partnerships	238	233
Provision for loan losses	1,400	2,100
Net unrealized loss on equity investment securities	8
Net loss on sale of other real estate owned	20	19
Loans originated for sale	(5,848)	(5,932)
Proceeds from sale of loans originated for sale	5,813	6,074
Net gain on sale of loans originated for sale	(47)	(36)
Net amortization of investment securities	895	1,197
Net gain on sale of investment securities available-for-sale	(23)
Net gain on sale of credit card loans held for sale		(291)
Life insurance investment income	(378)	(378)
Stock based compensation	240	105
Net change in:
Accrued interest receivable	(188)	134
Other assets	(4,114)	(1,187)
Accrued interest payable	(137)	41
Other liabilities	3,022	(914)
Net cash provided by operating activities	16,089	15,048
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale	9,677
Proceeds from repayments of investment securities:
Available-for-sale	24,651	15,445
Held-to-maturity	387	485
Purchases of investment securities:
Available-for-sale	(22,151)	(22,627)
Net purchase of restricted equity securities	(371)	(2,794)
Proceeds from sale of student loan portfolio		3,171
Net increase in lending activities	(36,380)	(68,291)
Purchases of premises and equipment	(2,541)	(1,071)
Proceeds from the sale of premises and equipment	21	340
Proceeds from sale of other real estate owned	111	200
Net cash used in investing activities	(26,596)	(75,142)
Cash flows from financing activities:
Net increase (decrease) in deposits	1,777	(157)
Proceeds from long-term debt	16,000
Repayment of long-term debt	(926)	(823)
Net (decrease) increase in short-term borrowings	(3,800)	63,775
Retirement of common stock	(166)
Cash dividends paid	(5,032)	(4,810)
Net cash provided by financing activities	7,853	57,985
Net decrease in cash and cash equivalents	(2,654)	(2,109)
Cash and cash equivalents at beginning of period	32,616	37,488
Cash and cash equivalents at end of period	29,962	35,379
Cash paid during the period for:
Interest	9,245	5,881
Income taxes	2,200	2,050
Noncash items:
Transfers of loans to other real estate	172	$ 495
Initial recognition of right-of-use assets	6,523
Initial recognition of lease liability	$ 6,523

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2019
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. Unless the context indicates otherwise, all references in this quarterly report to “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-eight full-service community banking offices located within the Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York. Additionally, we operate a Limited Purpose Banking Office(“LPO”) located in and serving Schuylkill County, Pennsylvania. 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 consolidated 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 consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the six months ended and as of June 30, 2019, are not necessarily indicative of the results of consolidated 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, and impairment of goodwill. 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, 2018. Recent accounting standards: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases”. From the lessees’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. The ROU asset and lease liability are calculated based on the present value of future lease payments using an estimated incremental borrowing rate. The Company utilized the incremental borrowing rate of interest on a collateralized basis for the lease term as quoted by the Federal Home Loan Bank of Pittsburgh (“FHLB”). Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income 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 is 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 were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The new standard provides a number of optional practical expedients in transition. We have elected the "package of practical expedients," which permit us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We elected the "use-of-hindsight" practical expedient which allows us to use hindsight in judgments that impact the lease term. In order to establish the value of the ROU and lease liability and in accordance with the guidance, management determined the term of the leases held by carefully evaluating and assessing each lease and applying economic and other relevant factors to determine whether the Company is reasonably certain to exercise or not to exercise a renewal option within each lease. We have also elected an accounting policy not to restate comparative periods upon adoption. The Company elected to adopt this pronouncement using the optional transition method under ASU 2018-11 as of January 1, 2019 and recorded right-of-use assets and lease liabilities for operating leases of $6,523 on its consolidated balance sheets, with no adjustment to stockholders’ equity and no material impact to its consolidated statements of income and comprehensive income. 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 were adopted on January 1, 2019 and did not have a material impact on the Company’s consolidated financial statements. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842) Codification Improvements” which was issued to address lessors’ concerns about determining fair value of underlying leased assets and presentation issues in the statement of cash flows for sales-type and direct financing leases. ASU 2019-01 also clarified for both lessees and lessors that transition disclosures related to Topic 250 were not required for annual periods are also not required for interim periods. ASU 2019-01 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Company early adopted this ASU 2019-01 effective January 1, 2019 and it did not have a material impact on the Company’s consolidated financial statements. 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.  In July 2019, the FASB agreed to issue a proposal to delay the effective date for smaller reporting companies, which the Company currently qualifies as such. If approved, the proposal could delay the effective date until 2023, though the Company may need to adopt earlier if it no longer qualifies as a smaller reporting company. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In August 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.

Other comprehensive loss

Other comprehensive loss	6 Months Ended
	Jun. 30, 2019
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, benefit plan adjustments and adjustments to derivative fair values. The components of accumulated other comprehensive loss included in stockholders’ equity at June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 Net unrealized loss on investment securities available-for-sale $ 1,776 $ (3,251) Income tax 373 (683) Net of income taxes 1,403 (2,568) Benefit plan adjustments (7,218) (7,218) Income tax (1,516) (1,516) Net of income taxes (5,702) (5,702) Derivative adjustments 752 246 Income tax 158 52 Net of income taxes 594 194 Accumulated other comprehensive loss $ (3,705) $ (8,076)

Earnings per share

Earnings per share	6 Months Ended
	Jun. 30, 2019
Earnings per share
Earnings per share	3. Earnings per share: Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. There were no shares considered anti-dilutive for the three and six month periods ended June 30, 2019 and 2018. 2019 2018 For the Three Months Ended June 30, Basic Diluted Basic Diluted Net Income $ 7,144 $ 7,144 $ 5,957 $ 5,957 Average common shares outstanding 7,399,302 7,399,302 7,396,533 7,396,533 Earnings per share $ 0.96 $ 0.96 $ 0.81 $ 0.81 2019 2018 For the Six Months Ended June 30 Basic Diluted Basic Diluted Net income $ 13,556 $ 13,556 $ 11,811 $ 11,811 Average common shares outstanding 7,399,178 7,399,178 7,396,519 7,396,519 Earnings per share $ 1.83 $ 1.83 $ 1.60 $ 1.60

Investment securities

Investment securities	6 Months Ended
	Jun. 30, 2019
Investment securities
Investment securities	4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at June 30, 2019 and December 31, 2018 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2019 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 23,958 $ 143 $ 17 $ 24,084 U.S. Government-sponsored enterprises 93,830 82 423 93,489 State and municipals: Taxable 12,475 367 12,842 Tax-exempt 69,454 713 32 70,135 Residential Mortgage-backed securities: U.S. Government agencies 10,669 135 20 10,784 U.S. Government-sponsored enterprises 40,901 776 92 41,585 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 8,601 145 8,746 Total $ 259,888 $ 2,361 $ 584 $ 261,665 Held-to-maturity: Tax-exempt state and municipals $ 6,854 $ 151 $ 7,005 Residential Mortgage-backed securities: U.S. Government agencies 36 36 U.S. Government-sponsored enterprises 1,079 32 $ 1 1,110 Total $ 7,969 $ 183 $ 1 $ 8,151 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 25,948 9 $ 365 $ 25,592 U.S. Government-sponsored enterprises 94,999 $ 2 2,183 92,818 State and municipals: Taxable 13,544 309 13,853 Tax-exempt 86,361 338 745 85,954 Residential Mortgage-backed securities: U.S. Government agencies 12,663 50 84 12,629 U.S. Government-sponsored enterprises 33,149 49 401 32,797 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,269 230 6,039 Total $ 272,933 $ 757 $ 4,008 $ 269,682 Held-to-maturity: Tax-exempt state and municipals $ 6,855 $ 12 $ 43 $ 6,824 Residential Mortgage-backed securities: U.S. Government agencies 42 42 U.S. Government-sponsored enterprises 1,464 55 5 1,514 Total $ 8,361 $ 67 $ 48 $ 8,380 Equity Securities Our equity securities portfolio consists of stock of two other financial institutions. At June 30, 2019 and December 31, 2018, we had $283 and $291 respectively, in equity securities recorded at fair value. At June 30, 2019, the fair value of our equity portfolio exceeded the cost basis by $6. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2019 (in thousands): For the Three Months Ended June 30, 2019 2018 Net gains (losses) recognized during the period on equity securities $ (9) $ 8 Less: Net gains and (losses) recognized during the period on equity securities sold during the period Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (9) $ 8 For the Six Months Ended June 30, 2019 2018 Net gains (losses) recognized during the period on equity securities $ (8) $ Less: Net gains and (losses) recognized during the period on equity securities sold during the period Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (8) $ Restricted Investment In Stock Restricted investment in stock includes FHLB with a carrying cost of $7,791 and $7,420 at June 30, 2019 and December 31, 2018, 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 June 30, 2019 and December 31, 2018, 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. The Company owns 44,982 shares of Visa Class B stock, which was necessary to participate in Visa services in support of the Company’s credit card, debit card, and related payment programs (permissible activities under banking regulations) as a member institution. Following the resolution of Visa’s litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares using a conversion factor (1.6298 as of June 30, 2019), 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 stock. 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 June 30, 2019, 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 June 30, 2019, is summarized as follows: Fair June 30, 2019 Value Within one year $ 38,102 After one but within five years 133,582 After five but within ten years 10,729 After ten years 18,137 200,550 Mortgage-backed securities 61,115 Total $ 261,665 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at June 30, 2019, is summarized as follows: Amortized Fair June 30, 2019 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,854 $ 7,005 6,854 7,005 Mortgage-backed securities 1,115 1,146 Total $ 7,969 $ 8,151 Securities with a carrying value of $144,991 and $161,647 at June 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits and certain other deposits as required or permitted by law. Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At June 30, 2019 and December 31, 2018, 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 June 30, 2019 and December 31, 2018, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2019 Value Losses Value Losses Value Losses U.S. Treasury securities $ $ $ 7,993 $ 17 $ 7,993 $ 17 U.S. Government-sponsored enterprises 75,292 423 75,292 423 State and municipals: Tax-exempt 14,499 32 14,499 32 Residential Mortgage-backed securities: U.S. Government agencies 5,281 20 5,281 20 U.S. Government-sponsored enterprises 10,372 93 10,372 93 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises — — Total $ — $ — $ 113,437 $ 585 $ 113,437 $ 585 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Losses Value Losses Value Losses U.S. Treasury securities $ 1,995 $ 2 $ 19,671 $ 363 $ 21,666 $ 365 U.S. Government-sponsored enterprises 2,037 1 89,729 2,182 91,766 2,183 State and municipals: Tax-exempt 9,022 74 52,352 714 61,374 788 Residential Mortgage-backed securities: U.S. Government agencies 7,800 84 7,800 84 U.S. Government-sponsored enterprises 12,851 55 13,881 351 26,732 406 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,039 230 6,039 230 Total $ 25,905 $ 132 $ 189,472 $ 3,924 $ 215,377 $ 4,056 The Company had 73 investment securities, consisting of 20 tax-exempt state and municipal obligations, 3 U.S. Treasury securities, 28 U.S. Government-sponsored enterprise securities, and 22 mortgage-backed securities that were in unrealized loss positions at June 30, 2019. Of these securities, 3 U.S. Treasury securities, 28 U.S. Government-sponsored enterprise securities, 20 tax-exempt state and municipal obligations, and 20 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 June 30, 2019. There was no OTTI recognized for the three or six months ended June 30, 2019 and 2018.

Loans, net and allowance for lo

Loans, net and allowance for loan losses	6 Months Ended
	Jun. 30, 2019
Loans, net and allowance for loan losses
Loans, net and allowance for loan losses	5. Loans, net and allowance for loan losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at June 30, 2019 and December 31, 2018 are summarized as follows. Net deferred loan costs were $901 and $744 at June 30, 2019 and December 31, 2018. June 30, 2019 December 31, 2018 Commercial $ 513,655 $ 494,134 Real estate: Commercial 935,578 907,803 Residential 298,527 299,876 Consumer 111,039 121,453 Total $ 1,858,799 $ 1,823,266 The changes in the allowance for loan losses account by major classification of loan for the three and six months ended June 30, 2019 and 2018 are summarized as follows: Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance April 1, 2019 $ 5,955 $ 11,074 $ 3,880 $ 1,196 $ 22,105 Charge-offs (10) (343) (143) (80) (576) Recoveries 2 12 37 51 Provisions 195 311 (134) (22) 350 Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 Real estate June 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance April 1, 2018 $ 5,198 $ 10,301 $ 2,924 $ 1,295 $ 19,718 Charge-offs (2) (1,169) (82) (145) (1,398) Recoveries 59 30 57 57 203 Provisions (64) 896 257 (39) 1,050 Ending balance $ 5,191 $ 10,058 $ 3,156 $ 1,168 $ 19,573 Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2019 $ 5,516 $ 10,736 $ 3,892 1,235 21,379 Charge-offs (87) (349) (302) (212) (950) Recoveries 10 16 75 101 Provisions 703 655 9 33 1,400 Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 Real estate June 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2018 $ 5,513 $ 8,944 $ 3,111 $ 1,392 $ 18,960 Charge-offs (2) (1,169) (381) (272) (1,824) Recoveries 116 57 67 97 337 Provisions (436) 2,226 359 (49) 2,100 Ending balance $ 5,191 $ 10,058 $ 3,156 $ 1,168 $ 19,573 The allocation of the allowance for loan losses and the related loans by major classifications of loans at June 30, 2019 and December 31, 2018 is summarized as follows: Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 Ending balance: individually evaluated for impairment 615 216 295 1,126 Ending balance: collectively evaluated for impairment $ 5,527 $ 10,826 $ 3,320 $ 1,131 $ 20,804 Loans receivable: Ending balance $ 513,655 $ 935,578 $ 298,527 $ 111,039 $ 1,858,799 Ending balance: individually evaluated for impairment 5,915 3,867 2,280 251 12,313 Ending balance: collectively evaluated for impairment $ 507,740 $ 931,711 $ 296,247 $ 110,788 $ 1,846,486 Real estate December 31, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Ending balance: individually evaluated for impairment 50 403 666 60 1,179 Ending balance: collectively evaluated for impairment $ 5,466 $ 10,333 $ 3,226 $ 1,175 $ 20,200 Loans receivable: Ending balance $ 494,134 $ 907,803 $ 299,876 $ 121,453 $ 1,823,266 Ending balance: individually evaluated for impairment 2,237 3,121 4,071 212 9,641 Ending balance: collectively evaluated for impairment $ 491,897 $ 904,682 $ 295,805 $ 121,241 $ 1,813,625 The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: · Pass- A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. · Special Mention- A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. · Substandard- A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. · Doubtful – A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. · Loss- A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The following tables present the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at June 30, 2019 and December 31, 2018: Special June 30, 2019 Pass Mention Substandard Doubtful Total Commercial $ 504,060 $ 2,029 $ 7,566 $ $ 513,655 Real estate: Commercial 905,398 3,054 27,126 935,578 Residential 296,021 351 2,155 298,527 Consumer 110,672 367 111,039 Total $ 1,816,151 $ 5,434 $ 37,214 $ $ 1,858,799 Special December 31, 2018 Pass Mention Substandard Doubtful Total Commercial $ 491,531 $ 869 $ 1,734 $ $ 494,134 Real estate: Commercial 886,849 8,934 12,020 907,803 Residential 295,758 357 3,761 299,876 Consumer 121,229 224 121,453 Total $ 1,795,367 $ 10,160 $ 17,739 $ $ 1,823,266 The increase in substandard loans from December 31, 2018 to June 30, 2019 is primarily associated with the reclassification of several larger commercial credits to this category. The largest relationship totals $10.4 million and consists of commercial real estate and equipment financing for a borrowing group that has encountered some financial difficulties. The second largest reclassification consists of a $5.3 million commercial real estate construction loan that experienced significant construction delays. The construction is now complete and the property recently received its certificate of occupancy. The Bank considers both of these credit relationships to be well secured and both relationships were current as of June 30, 2019. Information concerning nonaccrual loans by major loan classification at June 30, 2019 and December 31, 2018 is summarized as follows: June 30, 2019 December 31, 2018 Commercial $ 4,494 $ 776 Real estate: Commercial 3,044 2,663 Residential 1,464 2,580 Consumer 251 212 Total $ 9,253 $ 6,231 The major classifications of loans by past due status are summarized as follows: Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and June 30, 2019 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 385 $ 136 $ 4,502 $ 5,023 $ 508,632 $ 513,655 $ Real estate: Commercial 1,200 54 3,192 4,446 931,132 935,578 148 Residential 1,930 427 1,649 4,006 294,521 298,527 185 Consumer 495 128 251 874 110,165 111,039 Total $ 4,010 $ 745 $ 9,594 $ 14,349 $ 1,844,450 $ 1,858,799 $ 341 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, 2018 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 973 $ 79 $ 776 $ 1,828 $ 492,306 $ 494,134 Real estate: Commercial 1,889 218 2,736 4,843 902,960 907,803 $ 73 Residential 2,486 1,545 3,430 7,461 292,415 299,876 850 Consumer 756 292 212 1,260 120,193 121,453 Total $ 6,104 $ 2,134 $ 7,154 $ 15,392 $ 1,807,874 $ 1,823,266 $ 923 The following tables summarize information concerning impaired loans as of and for the three and six months ended June 30, 2019 and June 30, 2018, and as of and for the year ended, December 31, 2018 by major loan classification: This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2019 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 4,495 $ 4,931 $ 5,284 $ 17 $ 4,043 $ 34 Real estate: Commercial 2,957 3,116 2,528 10 2,341 23 Residential 619 888 740 4 1,150 11 Consumer 251 261 245 214 Total 8,322 9,196 8,797 31 7,748 68 With an allowance recorded: Commercial 1,420 1,432 615 1,180 5 1,012 12 Real estate: Commercial 910 1,380 216 1,174 5 1,166 10 Residential 1,661 1,740 295 1,848 7 1,932 18 Consumer 20 Total 3,991 4,552 1,126 4,202 17 4,130 40 Total impaired loans Commercial 5,915 6,363 615 6,464 22 5,055 46 Real estate: Commercial 3,867 4,496 216 3,702 15 3,507 33 Residential 2,280 2,628 295 2,588 11 3,082 29 Consumer 251 261 245 234 Total $ 12,313 $ 13,748 $ 1,126 $ 12,999 $ 48 $ 11,878 $ 108 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,562 $ 1,900 $ 1,318 $ 67 Real estate: Commercial 1,969 2,299 2,822 28 Residential 1,970 2,658 2,193 22 Consumer 152 160 135 Total 5,653 7,017 6,468 117 With an allowance recorded: Commercial 675 675 50 1,006 30 Real estate: Commercial 1,152 1,323 403 1,676 18 Residential 2,101 2,328 666 1,585 22 Consumer 60 60 60 21 Total 3,988 4,386 1,179 4,288 70 Total impaired loans Commercial 2,237 2,575 50 2,324 97 Real estate: Commercial 3,121 3,622 403 4,498 46 Residential 4,071 4,986 666 3,778 44 Consumer 212 220 60 156 Total $ 9,641 $ 11,403 $ 1,179 $ 10,756 $ 187 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2018 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 1,182 $ 1,355 $ 1,197 $ $ 1,224 $ Real estate: Commercial 2,871 3,262 2,921 2,910 Residential 2,146 2,848 2,218 2,210 Consumer 60 67 106 127 Total 6,259 7,532 6,442 29 6,471 56 With an allowance recorded: Commercial 1,100 1,124 $ 146 1,117 8 1,139 16 Real estate: Commercial 1,755 1,876 502 2,079 4 1,853 10 Residential 1,425 1,550 378 1,458 4 1,504 8 Consumer 3 3 3 11 10 Total 4,283 4,553 1,029 4,665 16 4,506 34 Total impaired loans Commercial 2,282 2,479 146 2,314 24 2,363 49 Real estate: Commercial 4,626 5,138 502 5,000 13 4,763 25 Residential 3,571 4,398 378 3,676 8 3,714 16 Consumer 63 70 3 117 137 Total $ 10,542 $ 12,085 $ 1,029 $ 11,107 $ 45 $ 10,977 $ 90 Included in the commercial loan and commercial and residential real estate categories are troubled debt restructurings that are classified as impaired. Troubled debt restructurings totaled $2,677 at June 30, 2019, $2,779 at December 31, 2018 and $3,307 at June 30, 2018. 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 troubled debt restructurings for the three months ended June 30, 2019. There was one commercial real estate loan modified as a troubled debt restructuring during the six months ended June 30, 2019 in the amount of $340. There was one commercial real estate loan modified as a troubled debt restructuring for the three and six months ended June 30, 2018 totaling $340. During the three and six months ended June 30, 2019, there were payment defaults on two restructured commercial real estate loans with balances totaling $335 which were subsequently charged-off. During the three months ended June 30, 2018, there were no payment defaults on restructured loans. During the six months ended June 30, 2018, there was one payment default on a restructured residential mortgage loan with an outstanding balance of $58.

Other assets

Other assets	6 Months Ended
	Jun. 30, 2019
Other assets.
Other assets	6. Other assets: The components of other assets at June 30, 2019, and December 31, 2018 are summarized as follows: June 30, 2019 December 31, 2018 Other real estate owned $ 408 $ 376 Investment in low income housing partnership 7,139 7,377 Mortgage servicing rights 719 718 Bank owned life insurance 34,667 34,288 Restricted equity securities 7,833 7,462 Net deferred tax asset 3,919 5,081 Other assets 12,940 8,435 Total $ 67,625 $ 63,737

Fair value estimates

Fair value estimates	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019 and December 31, 2018 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 June 30, 2019 and December 31, 2018 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2019 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 24,084 $ 24,084 $ U.S. Government-sponsored enterprises 93,489 $ 93,489 State and Municipals: Taxable 12,842 12,842 Tax-exempt 70,135 70,135 Mortgage-backed securities: U.S. Government agencies 10,784 10,784 U.S. Government-sponsored enterprises 50,331 50,331 Common equity securities 283 283 Interest rate floor-other assets 1,025 1,025 Interest rate swap-other assets 3,807 3,807 Interest rate swap-other liabilities (4,182) (4,182) Total $ 262,598 $ 24,367 $ 238,231 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2018 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 25,592 $ 25,592 $ U.S. Government-sponsored enterprises 92,818 $ 92,818 State and Municipals: Taxable 13,853 13,853 Tax-exempt 85,954 85,954 Mortgage-backed securities: U.S. Government agencies 12,629 12,629 U.S. Government-sponsored enterprises 38,836 38,836 Common equity securities 291 291 Interest rate floor-other assets 553 553 Interest rate swap-other assets 108 108 Interest rate swap-other liabilities (138) (138) Total $ 270,496 $ 25,883 $ 244,613 $ Assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2019 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,865 $ 2,865 Other real estate owned $ 250 $ 250 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2018 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,809 $ 2,809 Other real estate owned $ 234 $ 234 Fair values of impaired loans are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Range June 30, 2019 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,865 Appraisal of collateral Appraisal adjustments 7.6% to 97.0% (56.7)% Liquidation expenses 3.0% to 6.0% (5.4)% Other real estate owned $ 250 Appraisal of collateral Appraisal adjustments 20.0% to 43.3% (32.0)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2018 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,809 Appraisal of collateral Appraisal adjustments 7.1% to 97.0% (61.8)% Liquidation expenses 3.0% to 6.0% (4.4)% Other real estate owned $ 234 Appraisal of collateral Appraisal adjustments 26.0% to 73.3% (38.9)% Liquidation expenses 3.0% to 6.0% (5.0)% Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The carrying and fair values of the Company’s financial instruments at June 30, 2019 and December 31, 2018 and their placement within the fair value hierarchy are as follows: Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs June 30, 2019 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 29,962 $ 29,962 $ 29,962 Investment securities: Available-for-sale 261,665 261,665 24,084 $ 237,581 Common equity securities 283 283 283 Held-to-maturity 7,969 8,151 8,151 Net loans 1,836,869 1,830,139 $ 1,830,139 Accrued interest receivable 7,303 7,303 7,303 Mortgage servicing rights 719 1,712 1,712 Restricted equity securities 7,833 7,833 7,833 Interest rate floor 1,025 1,025 1,025 Interest rate swaps 3,807 3,807 3,807 Total $ 2,157,435 $ 2,151,880 Financial liabilities: Deposits $ 1,876,799 $ 1,862,246 $ 1,862,246 Short-term borrowings 82,700 82,700 82,700 Long-term debt 52,980 53,338 53,338 Accrued interest payable 1,058 1,058 1,058 Interest rate swaps 4,182 4,182 4,182 Total $ 2,017,719 $ 2,003,524 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2018 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 32,616 $ 32,616 $ 32,616 Investment securities: Available-for-sale 269,682 269,682 25,952 $ 244,090 Common equity securities 291 291 291 Held-to-maturity 8,361 8,380 8,380 Loans held for sale 749 749 749 Net loans 1,801,887 1,762,449 $ 1,762,449 Accrued interest receivable 7,115 7,115 7,115 Mortgage servicing rights 718 1,710 1,710 Restricted equity securities 7,462 7,462 7,462 Interest rate floor 553 553 553 Interest rate swaps 108 108 108 Total $ 2,129,542 $ 2,091,115 Financial liabilities: Deposits $ 1,875,022 $ 1,874,520 $ 1,874,520 Short-term borrowings 86,500 86,500 86,500 Long-term debt 37,906 38,071 38,071 Accrued interest payable 1,195 1,195 1,195 Interest rate swaps 138 138 138 Total $ 2,000,761 $ 2,000,424

Employee benefit plans

Employee benefit plans	6 Months Ended
	Jun. 30, 2019
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 six months ended June 30, salaries and employee benefits expense includes approximately $415 and $755, respectively in 2019 and $403 and $743, respectively in 2018 relating to the employee benefit plans. Pension Benefits Three Months Ended June 30, 2019 2018 Components of net periodic pension cost: Interest cost $ 192 $ 156 Expected return on plan assets (325) (240) Amortization of unrecognized net gain 68 49 Net periodic benefit cost $ (65) $ (35) Pension Benefits Six Months Ended June 30, 2019 2018 Components of net periodic pension cost: Interest cost $ 320 $ 156 Expected return on plan assets (542) (240) Amortization of unrecognized net gain 113 49 Net periodic benefit cost $ (109) $ (35) The Company contributed $2,700 to the pension plan during the third quarter of 2018. This contribution reduced the unfunded portion of the pension plan and also reduced future premium costs associated with the plan. Previously, the Company paid a fixed premium cost of $18 annually with an additional $92 for the variable portion of the premium. This was 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. No awards may be made under the 2008 Plan after January 15, 2018. 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 June 30, 2019, there were 61,346 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 the first six months of 2019 and 2018, the Company granted awards of restricted stock and restricted stock units under the 2017 Plan, with an aggregate of 17,345 shares and 11,468 shares underlying such awards, respectively. The non-performance restricted stock grants made in 2019 and 2018 vest equally over three years from the grant date. 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. 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 $240 and $157 for the three and six months ended June 30, 2019 for awards granted under the 2017 Plan. The Company recognized compensation expense of $37 and $43 for the three and six months ended June 30, 2018 for awards granted under the 2017 Plan and $31 and $62 for awards granted under the 2008 Plan. As of June 30, 2019, the Company had $1,071 of unrecognized compensation expense associated with restricted stock awards. The remaining cost is expected to be recognized over a weighted average vesting period of just under 1.7 years.

Derivatives and hedging activit

Derivatives and hedging activities	6 Months Ended
	Jun. 30, 2019
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 risk 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 and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate floors as part of its interest rate risk management strategy. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Loss and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The earnings recognition of excluded components is presented in interest income. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate assets. During 2019, the Company estimates that an additional $64 will be reclassified as a reduction to interest income. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. 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 June 30, 2019, the Company had 22 interest rate swaps with an aggregate notional amount of $123,351 related to this program. 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 June 30, 2019 and December 31, 2018. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of June 30, 2019 As of December 31, 2018 (1) As of June 30, 2019 As of December 31, 2018 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1,025 $ Total derivatives designated as hedging instruments $ 1,025 $ Derivatives not designated as hedging instruments Interest Rate Swaps $ 123,351 Other Assets $ 3,807 Other Assets $ 108 Other Liabilities $ 4,182 Other Liabilities $ 138 Total derivatives not designated as hedging instruments $ 3,807 $ 108 $ 4,182 $ 138 (1) Assets amount does not include accrued interest receivable of $13 (2) Liabilities amount does not include accrued interest payable of $13 Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss The table below presents the effect of fair value and cash flow hedge accounting on Accumulated Other Comprehensive Loss as of June 30, 2019. There was no cash flow hedge as of June 30, 2018. Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships June 30, 2019 Income June 30, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 427 $ 532 $ (105) Interest Income $ (16) $ $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships June 30, 2019 Income June 30, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 474 $ 827 $ (353) Interest Income $ (31) $ $ (31) * Amounts disclosed are gross and not net of taxes. Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Income and Comprehensive Income The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2019 and June 30, 2018. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2019 2018 Interest Income Interest Income Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded $ (31) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ (31) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (31) Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018. Amount of Loss Amount of Loss Amount of Gain Amount of Gain Recognized in Recognized in Recognized in Recognized in Location of Gain or (Loss) Income Income Income Income Recognized in Income on Three Months Ended Six Months Ended Three Months Ended Six Months Ended Derivatives Not Designated as Hedging Instruments Derivative June 30, 2019 June 30, 2019 June 30, 2018 June 30, 2018 Interest Rate Swaps Other non-interest income $ (236) $ (346) $ 19 $ 85 Fee Income Other income / (expense) $ 744 $ 1,136 $ 53 $ 53 Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2019 and December 31, 2018. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Balance Sheets. Offsetting of Derivative Assets as of June 30, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 4,833 $ $ 4,833 $ $ 4,833 Offsetting of Derivative Liabilities as of June 30, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 4,183 $ $ 4,183 $ $ 4,183 Offsetting of Derivative Assets as of December 31, 2018 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 661 $ $ 661 $ $ 661 Offsetting of Derivative Liabilities as of December 31, 2018 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 138 $ $ 138 $ $ 138 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 June 30, 2019, 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 $376. As of December 31, 2018, 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 $29. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $3,310 against its obligations under these agreements as of June 30, 2019, compared to having no posted collateral with a counterparty at December 31, 2018. 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.

Borrowings

Borrowings	6 Months Ended
	Jun. 30, 2019
Borrowings
Borrowings	10. Borrowings Short-term borrowings consisted of FHLB advances representing overnight borrowings at June 30, 2019 and December 31, 2018: At and for the six months ended June 30, 2019 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at Balance Balance Balance the six monthe ended June 30,2019 June 30,2019 FHLB advances $ 82,700 $ 105,212 $ 133,725 2.70 % 2.46 % At and for the year ended December 31, 2018 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 86,500 $ 133,834 $ 189,275 2.05 % 2.62 % The Company 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 June 30, 2019, the maximum borrowing capacity was $706,808 of which $135,680 was outstanding in borrowings. At December 31, 2018, the maximum borrowing capacity was $700,169 of which $124,406 was outstanding in borrowings. Short-term borrowings were used to fund our loan growth during the first six months of 2019 as deposit balances were relatively unchanged from year end. Short-term borrowings were lower by $3,800 from year end 2018 in part to us locking in $16,000 of new long term borrowings at lower fixed rates under the FHLB’s ‘Community Lending Program’. 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. The short-term borrowing rate resets each day. Long-term debt consisting of advances from the FHLB at June 30, 2019 and December 31, 2018 are as follows: Interest Rate Due Fixed Adjustable June 30, 2019 December 31, 2018 December 2019 4.09 % $ 3,000 3,000 December 2019 3.63 6,300 6,300 December 2019 1.62 % 10,000 10,000 June 2020 1.74 5,000 5,000 June 2020 2.22 6,000 December 2020 1.84 5,000 5,000 June 2021 1.99 10,000 March 2023 4.69 7,680 8,606 $ 52,980 $ 37,906 Maturities of long-term debt, by contractual maturity, for the remainder of 2019 and subsequent years are as follows: 2019 $ 20,248 2020 17,963 2021 12,058 2022 2,156 2023 555 $ 52,980 None of the advances from the FHLB are convertible. At June 30, 2019, long-term debt consist of $43,680 at fixed rates and $9,300 at adjustable rates which reset quarterly based on three-month LIBOR plus 1.21% to plus 1.57%. New long-term advances totaling $16,000 were entered into with the FHLB during the second quarter of 2019. The advances were qualified under the FHLB’s ‘Community Lending Program’ which offers rates lower than their stated rates when the advances are used for community development.

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2019
Income taxes
Income taxes	11. Income taxes The effective tax rate of the Company was 11.8% and 11.2% for the three and six months ended June 30, 2019 compared to 12.0% and 11.8% for the three and six months ended June 30, 2018. The three and six months ended June 30, 2019 include before tax investment tax credits and other credits of $390 and $778 compared to before tax investment tax credits $273 and $543 for those same periods last year.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2019
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. Unless the context indicates otherwise, all references in this quarterly report to “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-eight full-service community banking offices located within the Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York. Additionally, we operate a Limited Purpose Banking Office(“LPO”) located in and serving Schuylkill County, Pennsylvania.
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 consolidated 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 consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the six months ended and as of June 30, 2019, are not necessarily indicative of the results of consolidated 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, and impairment of goodwill. 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, 2018.
Recent accounting standards	Recent accounting standards: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases”. From the lessees’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. The ROU asset and lease liability are calculated based on the present value of future lease payments using an estimated incremental borrowing rate. The Company utilized the incremental borrowing rate of interest on a collateralized basis for the lease term as quoted by the Federal Home Loan Bank of Pittsburgh (“FHLB”). Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income 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 is 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 were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The new standard provides a number of optional practical expedients in transition. We have elected the "package of practical expedients," which permit us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We elected the "use-of-hindsight" practical expedient which allows us to use hindsight in judgments that impact the lease term. In order to establish the value of the ROU and lease liability and in accordance with the guidance, management determined the term of the leases held by carefully evaluating and assessing each lease and applying economic and other relevant factors to determine whether the Company is reasonably certain to exercise or not to exercise a renewal option within each lease. We have also elected an accounting policy not to restate comparative periods upon adoption. The Company elected to adopt this pronouncement using the optional transition method under ASU 2018-11 as of January 1, 2019 and recorded right-of-use assets and lease liabilities for operating leases of $6,523 on its consolidated balance sheets, with no adjustment to stockholders’ equity and no material impact to its consolidated statements of income and comprehensive income. 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 were adopted on January 1, 2019 and did not have a material impact on the Company’s consolidated financial statements. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842) Codification Improvements” which was issued to address lessors’ concerns about determining fair value of underlying leased assets and presentation issues in the statement of cash flows for sales-type and direct financing leases. ASU 2019-01 also clarified for both lessees and lessors that transition disclosures related to Topic 250 were not required for annual periods are also not required for interim periods. ASU 2019-01 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Company early adopted this ASU 2019-01 effective January 1, 2019 and it did not have a material impact on the Company’s consolidated financial statements. 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.  In July 2019, the FASB agreed to issue a proposal to delay the effective date for smaller reporting companies, which the Company currently qualifies as such. If approved, the proposal could delay the effective date until 2023, though the Company may need to adopt earlier if it no longer qualifies as a smaller reporting company. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In August 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.

Other comprehensive loss (Table

Other comprehensive loss (Tables)	6 Months Ended
	Jun. 30, 2019
Other comprehensive loss
Schedule of components of accumulated other comprehensive loss	June 30, 2019 December 31, 2018 Net unrealized loss on investment securities available-for-sale $ 1,776 $ (3,251) Income tax 373 (683) Net of income taxes 1,403 (2,568) Benefit plan adjustments (7,218) (7,218) Income tax (1,516) (1,516) Net of income taxes (5,702) (5,702) Derivative adjustments 752 246 Income tax 158 52 Net of income taxes 594 194 Accumulated other comprehensive loss $ (3,705) $ (8,076)

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings per share
Schedule of earnings per share	2019 2018 For the Three Months Ended June 30, Basic Diluted Basic Diluted Net Income $ 7,144 $ 7,144 $ 5,957 $ 5,957 Average common shares outstanding 7,399,302 7,399,302 7,396,533 7,396,533 Earnings per share $ 0.96 $ 0.96 $ 0.81 $ 0.81 2019 2018 For the Six Months Ended June 30 Basic Diluted Basic Diluted Net income $ 13,556 $ 13,556 $ 11,811 $ 11,811 Average common shares outstanding 7,399,178 7,399,178 7,396,519 7,396,519 Earnings per share $ 1.83 $ 1.83 $ 1.60 $ 1.60

Investment securities (Tables)

Investment securities (Tables)	6 Months Ended
	Jun. 30, 2019
Schedule of amortized cost and fair value of investment securities aggregated by investment category	Gross Gross Amortized Unrealized Unrealized Fair June 30, 2019 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 23,958 $ 143 $ 17 $ 24,084 U.S. Government-sponsored enterprises 93,830 82 423 93,489 State and municipals: Taxable 12,475 367 12,842 Tax-exempt 69,454 713 32 70,135 Residential Mortgage-backed securities: U.S. Government agencies 10,669 135 20 10,784 U.S. Government-sponsored enterprises 40,901 776 92 41,585 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 8,601 145 8,746 Total $ 259,888 $ 2,361 $ 584 $ 261,665 Held-to-maturity: Tax-exempt state and municipals $ 6,854 $ 151 $ 7,005 Residential Mortgage-backed securities: U.S. Government agencies 36 36 U.S. Government-sponsored enterprises 1,079 32 $ 1 1,110 Total $ 7,969 $ 183 $ 1 $ 8,151 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 25,948 9 $ 365 $ 25,592 U.S. Government-sponsored enterprises 94,999 $ 2 2,183 92,818 State and municipals: Taxable 13,544 309 13,853 Tax-exempt 86,361 338 745 85,954 Residential Mortgage-backed securities: U.S. Government agencies 12,663 50 84 12,629 U.S. Government-sponsored enterprises 33,149 49 401 32,797 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,269 230 6,039 Total $ 272,933 $ 757 $ 4,008 $ 269,682 Held-to-maturity: Tax-exempt state and municipals $ 6,855 $ 12 $ 43 $ 6,824 Residential Mortgage-backed securities: U.S. Government agencies 42 42 U.S. Government-sponsored enterprises 1,464 55 5 1,514 Total $ 8,361 $ 67 $ 48 $ 8,380
Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2019 Value Losses Value Losses Value Losses U.S. Treasury securities $ $ $ 7,993 $ 17 $ 7,993 $ 17 U.S. Government-sponsored enterprises 75,292 423 75,292 423 State and municipals: Tax-exempt 14,499 32 14,499 32 Residential Mortgage-backed securities: U.S. Government agencies 5,281 20 5,281 20 U.S. Government-sponsored enterprises 10,372 93 10,372 93 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises — — Total $ — $ — $ 113,437 $ 585 $ 113,437 $ 585 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value Losses Value Losses Value Losses U.S. Treasury securities $ 1,995 $ 2 $ 19,671 $ 363 $ 21,666 $ 365 U.S. Government-sponsored enterprises 2,037 1 89,729 2,182 91,766 2,183 State and municipals: Tax-exempt 9,022 74 52,352 714 61,374 788 Residential Mortgage-backed securities: U.S. Government agencies 7,800 84 7,800 84 U.S. Government-sponsored enterprises 12,851 55 13,881 351 26,732 406 Commercial Mortgage-backed securities: U.S. Government-sponsored enterprises 6,039 230 6,039 230 Total $ 25,905 $ 132 $ 189,472 $ 3,924 $ 215,377 $ 4,056
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 six months ended June 30, 2019 (in thousands): For the Three Months Ended June 30, 2019 2018 Net gains (losses) recognized during the period on equity securities $ (9) $ 8 Less: Net gains and (losses) recognized during the period on equity securities sold during the period Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (9) $ 8 For the Six Months Ended June 30, 2019 2018 Net gains (losses) recognized during the period on equity securities $ (8) $ Less: Net gains and (losses) recognized during the period on equity securities sold during the period Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date $ (8) $
Available-for-Sale Securities.
Schedule of maturity distribution of fair value	Fair June 30, 2019 Value Within one year $ 38,102 After one but within five years 133,582 After five but within ten years 10,729 After ten years 18,137 200,550 Mortgage-backed securities 61,115 Total $ 261,665
Held-to-maturity Securities.
Schedule of maturity distribution of fair value	Amortized Fair June 30, 2019 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,854 $ 7,005 6,854 7,005 Mortgage-backed securities 1,115 1,146 Total $ 7,969 $ 8,151

Loans, net and allowance for _2

Loans, net and allowance for loan losses (Tables)	6 Months Ended
	Jun. 30, 2019
Loans, net and allowance for loan losses
Schedule of major classifications of loans outstanding	June 30, 2019 December 31, 2018 Commercial $ 513,655 $ 494,134 Real estate: Commercial 935,578 907,803 Residential 298,527 299,876 Consumer 111,039 121,453 Total $ 1,858,799 $ 1,823,266
Schedule of changes in allowance for loan losses account by major classification of loans	The changes in the allowance for loan losses account by major classification of loan for the three and six months ended June 30, 2019 and 2018 are summarized as follows: Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance April 1, 2019 $ 5,955 $ 11,074 $ 3,880 $ 1,196 $ 22,105 Charge-offs (10) (343) (143) (80) (576) Recoveries 2 12 37 51 Provisions 195 311 (134) (22) 350 Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 Real estate June 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance April 1, 2018 $ 5,198 $ 10,301 $ 2,924 $ 1,295 $ 19,718 Charge-offs (2) (1,169) (82) (145) (1,398) Recoveries 59 30 57 57 203 Provisions (64) 896 257 (39) 1,050 Ending balance $ 5,191 $ 10,058 $ 3,156 $ 1,168 $ 19,573 Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2019 $ 5,516 $ 10,736 $ 3,892 1,235 21,379 Charge-offs (87) (349) (302) (212) (950) Recoveries 10 16 75 101 Provisions 703 655 9 33 1,400 Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 Real estate June 30, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2018 $ 5,513 $ 8,944 $ 3,111 $ 1,392 $ 18,960 Charge-offs (2) (1,169) (381) (272) (1,824) Recoveries 116 57 67 97 337 Provisions (436) 2,226 359 (49) 2,100 Ending balance $ 5,191 $ 10,058 $ 3,156 $ 1,168 $ 19,573 The allocation of the allowance for loan losses and the related loans by major classifications of loans at June 30, 2019 and December 31, 2018 is summarized as follows: Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 Ending balance: individually evaluated for impairment 615 216 295 1,126 Ending balance: collectively evaluated for impairment $ 5,527 $ 10,826 $ 3,320 $ 1,131 $ 20,804 Loans receivable: Ending balance $ 513,655 $ 935,578 $ 298,527 $ 111,039 $ 1,858,799 Ending balance: individually evaluated for impairment 5,915 3,867 2,280 251 12,313 Ending balance: collectively evaluated for impairment $ 507,740 $ 931,711 $ 296,247 $ 110,788 $ 1,846,486 Real estate December 31, 2018 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Ending balance: individually evaluated for impairment 50 403 666 60 1,179 Ending balance: collectively evaluated for impairment $ 5,466 $ 10,333 $ 3,226 $ 1,175 $ 20,200 Loans receivable: Ending balance $ 494,134 $ 907,803 $ 299,876 $ 121,453 $ 1,823,266 Ending balance: individually evaluated for impairment 2,237 3,121 4,071 212 9,641 Ending balance: collectively evaluated for impairment $ 491,897 $ 904,682 $ 295,805 $ 121,241 $ 1,813,625
Schedule of major classification of loans portfolio summarized by credit quality	Special June 30, 2019 Pass Mention Substandard Doubtful Total Commercial $ 504,060 $ 2,029 $ 7,566 $ $ 513,655 Real estate: Commercial 905,398 3,054 27,126 935,578 Residential 296,021 351 2,155 298,527 Consumer 110,672 367 111,039 Total $ 1,816,151 $ 5,434 $ 37,214 $ $ 1,858,799 Special December 31, 2018 Pass Mention Substandard Doubtful Total Commercial $ 491,531 $ 869 $ 1,734 $ $ 494,134 Real estate: Commercial 886,849 8,934 12,020 907,803 Residential 295,758 357 3,761 299,876 Consumer 121,229 224 121,453 Total $ 1,795,367 $ 10,160 $ 17,739 $ $ 1,823,266
Schedule of information concerning nonaccrual loans by major loan classification	June 30, 2019 December 31, 2018 Commercial $ 4,494 $ 776 Real estate: Commercial 3,044 2,663 Residential 1,464 2,580 Consumer 251 212 Total $ 9,253 $ 6,231
Schedule of major classifications of loans by past due status	Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and June 30, 2019 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 385 $ 136 $ 4,502 $ 5,023 $ 508,632 $ 513,655 $ Real estate: Commercial 1,200 54 3,192 4,446 931,132 935,578 148 Residential 1,930 427 1,649 4,006 294,521 298,527 185 Consumer 495 128 251 874 110,165 111,039 Total $ 4,010 $ 745 $ 9,594 $ 14,349 $ 1,844,450 $ 1,858,799 $ 341 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, 2018 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 973 $ 79 $ 776 $ 1,828 $ 492,306 $ 494,134 Real estate: Commercial 1,889 218 2,736 4,843 902,960 907,803 $ 73 Residential 2,486 1,545 3,430 7,461 292,415 299,876 850 Consumer 756 292 212 1,260 120,193 121,453 Total $ 6,104 $ 2,134 $ 7,154 $ 15,392 $ 1,807,874 $ 1,823,266 $ 923
Summarized information concerning impaired loans	This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2019 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 4,495 $ 4,931 $ 5,284 $ 17 $ 4,043 $ 34 Real estate: Commercial 2,957 3,116 2,528 10 2,341 23 Residential 619 888 740 4 1,150 11 Consumer 251 261 245 214 Total 8,322 9,196 8,797 31 7,748 68 With an allowance recorded: Commercial 1,420 1,432 615 1,180 5 1,012 12 Real estate: Commercial 910 1,380 216 1,174 5 1,166 10 Residential 1,661 1,740 295 1,848 7 1,932 18 Consumer 20 Total 3,991 4,552 1,126 4,202 17 4,130 40 Total impaired loans Commercial 5,915 6,363 615 6,464 22 5,055 46 Real estate: Commercial 3,867 4,496 216 3,702 15 3,507 33 Residential 2,280 2,628 295 2,588 11 3,082 29 Consumer 251 261 245 234 Total $ 12,313 $ 13,748 $ 1,126 $ 12,999 $ 48 $ 11,878 $ 108 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,562 $ 1,900 $ 1,318 $ 67 Real estate: Commercial 1,969 2,299 2,822 28 Residential 1,970 2,658 2,193 22 Consumer 152 160 135 Total 5,653 7,017 6,468 117 With an allowance recorded: Commercial 675 675 50 1,006 30 Real estate: Commercial 1,152 1,323 403 1,676 18 Residential 2,101 2,328 666 1,585 22 Consumer 60 60 60 21 Total 3,988 4,386 1,179 4,288 70 Total impaired loans Commercial 2,237 2,575 50 2,324 97 Real estate: Commercial 3,121 3,622 403 4,498 46 Residential 4,071 4,986 666 3,778 44 Consumer 212 220 60 156 Total $ 9,641 $ 11,403 $ 1,179 $ 10,756 $ 187 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2018 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 1,182 $ 1,355 $ 1,197 $ $ 1,224 $ Real estate: Commercial 2,871 3,262 2,921 2,910 Residential 2,146 2,848 2,218 2,210 Consumer 60 67 106 127 Total 6,259 7,532 6,442 29 6,471 56 With an allowance recorded: Commercial 1,100 1,124 $ 146 1,117 8 1,139 16 Real estate: Commercial 1,755 1,876 502 2,079 4 1,853 10 Residential 1,425 1,550 378 1,458 4 1,504 8 Consumer 3 3 3 11 10 Total 4,283 4,553 1,029 4,665 16 4,506 34 Total impaired loans Commercial 2,282 2,479 146 2,314 24 2,363 49 Real estate: Commercial 4,626 5,138 502 5,000 13 4,763 25 Residential 3,571 4,398 378 3,676 8 3,714 16 Consumer 63 70 3 117 137 Total $ 10,542 $ 12,085 $ 1,029 $ 11,107 $ 45 $ 10,977 $ 90

Other assets (Tables)

Other assets (Tables)	6 Months Ended
	Jun. 30, 2019
Other assets.
Schedule of components of other assets	June 30, 2019 December 31, 2018 Other real estate owned $ 408 $ 376 Investment in low income housing partnership 7,139 7,377 Mortgage servicing rights 719 718 Bank owned life insurance 34,667 34,288 Restricted equity securities 7,833 7,462 Net deferred tax asset 3,919 5,081 Other assets 12,940 8,435 Total $ 67,625 $ 63,737

Fair value estimates (Tables)

Fair value estimates (Tables)	6 Months Ended
	Jun. 30, 2019
Fair value estimates
Schedule of assets and liabilities measured at fair value on a recurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2019 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 24,084 $ 24,084 $ U.S. Government-sponsored enterprises 93,489 $ 93,489 State and Municipals: Taxable 12,842 12,842 Tax-exempt 70,135 70,135 Mortgage-backed securities: U.S. Government agencies 10,784 10,784 U.S. Government-sponsored enterprises 50,331 50,331 Common equity securities 283 283 Interest rate floor-other assets 1,025 1,025 Interest rate swap-other assets 3,807 3,807 Interest rate swap-other liabilities (4,182) (4,182) Total $ 262,598 $ 24,367 $ 238,231 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2018 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 25,592 $ 25,592 $ U.S. Government-sponsored enterprises 92,818 $ 92,818 State and Municipals: Taxable 13,853 13,853 Tax-exempt 85,954 85,954 Mortgage-backed securities: U.S. Government agencies 12,629 12,629 U.S. Government-sponsored enterprises 38,836 38,836 Common equity securities 291 291 Interest rate floor-other assets 553 553 Interest rate swap-other assets 108 108 Interest rate swap-other liabilities (138) (138) Total $ 270,496 $ 25,883 $ 244,613 $
Schedule of assets and liabilities measured at fair value on a nonrecurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2019 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,865 $ 2,865 Other real estate owned $ 250 $ 250 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2018 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,809 $ 2,809 Other real estate owned $ 234 $ 234
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis	Quantitative Information about Level 3 Fair Value Measurements Fair Value Range June 30, 2019 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,865 Appraisal of collateral Appraisal adjustments 7.6% to 97.0% (56.7)% Liquidation expenses 3.0% to 6.0% (5.4)% Other real estate owned $ 250 Appraisal of collateral Appraisal adjustments 20.0% to 43.3% (32.0)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2018 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,809 Appraisal of collateral Appraisal adjustments 7.1% to 97.0% (61.8)% Liquidation expenses 3.0% to 6.0% (4.4)% Other real estate owned $ 234 Appraisal of collateral Appraisal adjustments 26.0% to 73.3% (38.9)% Liquidation expenses 3.0% to 6.0% (5.0)%
Schedule of carrying and fair values of financial instruments	Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs June 30, 2019 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 29,962 $ 29,962 $ 29,962 Investment securities: Available-for-sale 261,665 261,665 24,084 $ 237,581 Common equity securities 283 283 283 Held-to-maturity 7,969 8,151 8,151 Net loans 1,836,869 1,830,139 $ 1,830,139 Accrued interest receivable 7,303 7,303 7,303 Mortgage servicing rights 719 1,712 1,712 Restricted equity securities 7,833 7,833 7,833 Interest rate floor 1,025 1,025 1,025 Interest rate swaps 3,807 3,807 3,807 Total $ 2,157,435 $ 2,151,880 Financial liabilities: Deposits $ 1,876,799 $ 1,862,246 $ 1,862,246 Short-term borrowings 82,700 82,700 82,700 Long-term debt 52,980 53,338 53,338 Accrued interest payable 1,058 1,058 1,058 Interest rate swaps 4,182 4,182 4,182 Total $ 2,017,719 $ 2,003,524 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2018 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 32,616 $ 32,616 $ 32,616 Investment securities: Available-for-sale 269,682 269,682 25,952 $ 244,090 Common equity securities 291 291 291 Held-to-maturity 8,361 8,380 8,380 Loans held for sale 749 749 749 Net loans 1,801,887 1,762,449 $ 1,762,449 Accrued interest receivable 7,115 7,115 7,115 Mortgage servicing rights 718 1,710 1,710 Restricted equity securities 7,462 7,462 7,462 Interest rate floor 553 553 553 Interest rate swaps 108 108 108 Total $ 2,129,542 $ 2,091,115 Financial liabilities: Deposits $ 1,875,022 $ 1,874,520 $ 1,874,520 Short-term borrowings 86,500 86,500 86,500 Long-term debt 37,906 38,071 38,071 Accrued interest payable 1,195 1,195 1,195 Interest rate swaps 138 138 138 Total $ 2,000,761 $ 2,000,424

Employee benefit plans (Tables)

Employee benefit plans (Tables)	6 Months Ended
	Jun. 30, 2019
Employee benefit plans
Schedule of components of net periodic benefit cost	Pension Benefits Three Months Ended June 30, 2019 2018 Components of net periodic pension cost: Interest cost $ 192 $ 156 Expected return on plan assets (325) (240) Amortization of unrecognized net gain 68 49 Net periodic benefit cost $ (65) $ (35) Pension Benefits Six Months Ended June 30, 2019 2018 Components of net periodic pension cost: Interest cost $ 320 $ 156 Expected return on plan assets (542) (240) Amortization of unrecognized net gain 113 49 Net periodic benefit cost $ (109) $ (35)

Derivatives and hedging activ_2

Derivatives and hedging activities (Tables)	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019 As of December 31, 2018 (1) As of June 30, 2019 As of December 31, 2018 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1,025 $ Total derivatives designated as hedging instruments $ 1,025 $ Derivatives not designated as hedging instruments Interest Rate Swaps $ 123,351 Other Assets $ 3,807 Other Assets $ 108 Other Liabilities $ 4,182 Other Liabilities $ 138 Total derivatives not designated as hedging instruments $ 3,807 $ 108 $ 4,182 $ 138 (1) Assets amount does not include accrued interest receivable of $13 (2) Liabilities amount does not include accrued interest payable of $13
Schedule of effect of fair value and cash flow hedge accounting on Accumulated Other Comprehensive Income	Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships June 30, 2019 Income June 30, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 427 $ 532 $ (105) Interest Income $ (16) $ $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships June 30, 2019 Income June 30, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 474 $ 827 $ (353) Interest Income $ (31) $ $ (31) * Amounts disclosed are gross and not net of taxes.
Schedule of effect of derivative financial instruments on Income Statement	Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2019 2018 Interest Income Interest Income Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded $ (31) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ (31) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (31)
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Loss Amount of Loss Amount of Gain Amount of Gain Recognized in Recognized in Recognized in Recognized in Location of Gain or (Loss) Income Income Income Income Recognized in Income on Three Months Ended Six Months Ended Three Months Ended Six Months Ended Derivatives Not Designated as Hedging Instruments Derivative June 30, 2019 June 30, 2019 June 30, 2018 June 30, 2018 Interest Rate Swaps Other non-interest income $ (236) $ (346) $ 19 $ 85 Fee Income Other income / (expense) $ 744 $ 1,136 $ 53 $ 53
Schedule of offsetting derivatives	Offsetting of Derivative Assets as of June 30, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 4,833 $ $ 4,833 $ $ 4,833 Offsetting of Derivative Liabilities as of June 30, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 4,183 $ $ 4,183 $ $ 4,183 Offsetting of Derivative Assets as of December 31, 2018 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 661 $ $ 661 $ $ 661 Offsetting of Derivative Liabilities as of December 31, 2018 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 138 $ $ 138 $ $ 138

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Jun. 30, 2019
Borrowings
Summary of short-term borrowings	At and for the six months ended June 30, 2019 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at Balance Balance Balance the six monthe ended June 30,2019 June 30,2019 FHLB advances $ 82,700 $ 105,212 $ 133,725 2.70 % 2.46 % At and for the year ended December 31, 2018 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 86,500 $ 133,834 $ 189,275 2.05 % 2.62 %
Schedule of long-term debt advances	Interest Rate Due Fixed Adjustable June 30, 2019 December 31, 2018 December 2019 4.09 % $ 3,000 3,000 December 2019 3.63 6,300 6,300 December 2019 1.62 % 10,000 10,000 June 2020 1.74 5,000 5,000 June 2020 2.22 6,000 December 2020 1.84 5,000 5,000 June 2021 1.99 10,000 March 2023 4.69 7,680 8,606 $ 52,980 $ 37,906
Schedule of maturities of long-term debt	2019 $ 20,248 2020 17,963 2021 12,058 2022 2,156 2023 555 $ 52,980

Summary of significant accoun_3

Summary of significant accounting policies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)Office	Jan. 01, 2019USD ($)
Summary of significant accounting policies
Number of full-service community banking offices | Office	28
Lease liabilities for operating leases	$ 6,523	$ 6,523
Right-of-use assets	$ 6,523	$ 6,523

Other comprehensive loss - Comp

Other comprehensive loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Other comprehensive loss
Net unrealized loss on investment securities available-for-sale	$ 1,776	$ (3,251)
Income tax	373	(683)
Net of income taxes	1,403	(2,568)
Benefit plan adjustments	(7,218)	(7,218)
Income tax	1,516	1,516
Net of income taxes	(5,702)	(5,702)
Derivative adjustments	752	246
Income tax	158	52
Net of income taxes	594	194
Accumulated other comprehensive loss	$ (3,705)	$ (8,076)

Other comprehensive loss - Othe

Other comprehensive loss - Other Comprehensive Loss and Related Tax Effects (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other comprehensive loss
Unrealized (loss) gain on investment securities available-for-sale	$ 2,611	$ (839)	$ 5,050	$ (3,215)
Net gain on the sale of investment securities available-for-sale	(23)		(23)
Other comprehensive loss	3,031	(839)	5,533	(3,215)
Income tax	637	(176)	1,162	(677)
Other comprehensive loss	$ 2,394	$ (663)	$ 4,371	$ (2,538)

Earnings per share - Shares Con

Earnings per share - Shares Considered Anti-dilutive (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings per share
Anti-dilutive shares	0	0	0	0

Earnings per share - Schedule o

Earnings per share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings per share
Net income, Basic	$ 7,144	$ 5,957	$ 13,556	$ 11,811
Average common shares outstanding, Basic	7,399,302	7,396,533	7,399,178	7,396,519
Earnings per share, Basic	$ 0.96	$ 0.81	$ 1.83	$ 1.60
Net income, Diluted	$ 7,144	$ 5,957	$ 13,556	$ 11,811
Average common shares outstanding, Diluted	7,399,302	7,396,533	7,399,178	7,396,519
Earnings per share, Diluted	$ 0.96	$ 0.81	$ 1.83	$ 1.60

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) $ in Thousands	Jun. 30, 2019USD ($)company	Dec. 31, 2018USD ($)
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	$ 259,888	$ 272,933
Available-for-sale, Gross Unrealized Gains	2,361	757
Available-for-sale, Gross Unrealized Losses	584	4,008
Available-for-sale, Fair Value	261,665	269,682
Held-to-maturity, Amortized Cost	7,969	8,361
Held-to-maturity, Gross Unrealized Gains	183	67
Held-to-maturity, Gross Unrealized Losses	1	48
Held-to-maturity, Fair value	8,151	8,380
Equity investments carried at fair value	$ 283	291
Number of equity securities portfolio consisting of stock of other financial institutions | company	2
Fair value of equity portfolio in excess of cost basis	$ 6
Mortgage-backed Securities, U.S. Government agencies
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	10,669	12,663
Available-for-sale, Gross Unrealized Gains	135	50
Available-for-sale, Gross Unrealized Losses	20	84
Available-for-sale, Fair Value	10,784	12,629
Held-to-maturity, Amortized Cost	36	42
Held-to-maturity, Fair value	36	42
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	40,901	33,149
Available-for-sale, Gross Unrealized Gains	776	49
Available-for-sale, Gross Unrealized Losses	92	401
Available-for-sale, Fair Value	41,585	32,797
Held-to-maturity, Amortized Cost	1,079	1,464
Held-to-maturity, Gross Unrealized Gains	32	55
Held-to-maturity, Gross Unrealized Losses	1	5
Held-to-maturity, Fair value	1,110	1,514
Commercial mortgage-backed Securities, U.S. Government-sponsored enterprises
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	8,601	6,269
Available-for-sale, Gross Unrealized Gains	145
Available-for-sale, Gross Unrealized Losses		230
Available-for-sale, Fair Value	8,746	6,039
U.S. Government-sponsored enterprises state and municipals
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	93,830	94,999
Available-for-sale, Gross Unrealized Gains	82	2
Available-for-sale, Gross Unrealized Losses	423	2,183
Available-for-sale, Fair Value	93,489	92,818
U.S. Treasuries
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	23,958	25,948
Available-for-sale, Gross Unrealized Gains	143	9
Available-for-sale, Gross Unrealized Losses	17	365
Available-for-sale, Fair Value	24,084	25,592
Common equity securities.
Schedule of Trading Securities and Other Trading Assets
Equity investments carried at fair value	283	291
State and Municipals, Taxable
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	12,475	13,544
Available-for-sale, Gross Unrealized Gains	367	309
Available-for-sale, Fair Value	12,842	13,853
State and Municipals, Tax-exempt
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	69,454	86,361
Available-for-sale, Gross Unrealized Gains	713	338
Available-for-sale, Gross Unrealized Losses	32	745
Available-for-sale, Fair Value	70,135	85,954
Held-to-maturity, Amortized Cost	6,854	6,855
Held-to-maturity, Gross Unrealized Gains	151	12
Held-to-maturity, Gross Unrealized Losses		43
Held-to-maturity, Fair value	$ 7,005	$ 6,824

Investment securities - Unreali

Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019
Investment securities
Net gains recognized during the period on equity securities	$ (9)	$ 8	$ (8)
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date	$ (9)	$ 8	$ (8)

Investment securities - Restric

Investment securities - Restricted Investment In Stock (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)security	Jun. 30, 2018USD ($)
Available-for-sale and Held-to-maturity securities
Proceeds from sale of available-for-sale investment securities | $	$ 9,677
Gross realized gains | $	$ 23
Number of securities in continuous unrealized loss position	73
Other-than-temporary impairments recognized | $	$ 0
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Number of securities in continuous unrealized loss position	20
Number of securities in continuous unrealized loss positions 12 months or longer	20
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Number of securities in continuous unrealized loss position	3
Number of securities in continuous unrealized loss positions 12 months or longer	3
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Number of securities in continuous unrealized loss position	28
Number of securities in continuous unrealized loss positions 12 months or longer	28
Other-than-temporary impairments recognized | $	$ 0	$ 0
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Number of securities in continuous unrealized loss position	22
Number of securities in continuous unrealized loss positions 12 months or longer	20

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investment securities
Within one year	$ 38,102
After one but within five years	133,582
After five but within ten years	10,729
After ten years	18,137
Available for sale securities	200,550
Mortgage-backed securities	61,115
Total	$ 261,665	$ 269,682

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After ten years, Held to maturity	$ 6,854
Amortized Cost, Held to maturity	6,854
Amortized Cost, Mortgage-backed securities, Held to maturity	1,115
Held-to-maturity, Amortized Cost	7,969	$ 8,361
Fair Value of Held-to-maturity Securities
Fair Value, After ten years, Held to maturity	7,005
Fair Value, Held to maturity	7,005
Fair Value, Mortgage-backed securities, Held to maturity	1,146
Held to maturity, Fair Value	$ 8,151	$ 8,380

Investment securities - Pledged

Investment securities - Pledged Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged	us-gaap:AssetPledgedAsCollateralMember	us-gaap:AssetPledgedAsCollateralMember
Collateral Pledged
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged	$ 144,991	$ 161,647

Investment securities - Fair Va

Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		$ 25,905
12 Months or More, Fair Value	$ 113,437	189,472
Less Than 12 Months, Unrealized Losses		132
12 Months or More, Unrealized Losses	585	3,924
Total, Fair Value	113,437	215,377
Total, Unrealized Losses	585	4,056
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		9,022
12 Months or More, Fair Value	14,499	52,352
Less Than 12 Months, Unrealized Losses		74
12 Months or More, Unrealized Losses	32	714
Total, Fair Value	14,499	61,374
Total, Unrealized Losses	32	788
U.S. Treasuries
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		1,995
12 Months or More, Fair Value	7,993	19,671
Less Than 12 Months, Unrealized Losses		2
12 Months or More, Unrealized Losses	17	363
Total, Fair Value	7,993	21,666
Total, Unrealized Losses	17	365
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		2,037
12 Months or More, Fair Value	75,292	89,729
Less Than 12 Months, Unrealized Losses		1
12 Months or More, Unrealized Losses	423	2,182
Total, Fair Value	75,292	91,766
Total, Unrealized Losses	423	2,183
Mortgage-backed Securities, U.S. Government agencies
Available-for-sale and Held-to-maturity securities
12 Months or More, Fair Value	5,281	7,800
12 Months or More, Unrealized Losses	20	84
Total, Fair Value	5,281	7,800
Total, Unrealized Losses	20	84
Commercial mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
12 Months or More, Fair Value	10,372	6,039
12 Months or More, Unrealized Losses	93	230
Total, Fair Value	10,372	6,039
Total, Unrealized Losses	$ 93	230
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		12,851
12 Months or More, Fair Value		13,881
Less Than 12 Months, Unrealized Losses		55
12 Months or More, Unrealized Losses		351
Total, Fair Value		26,732
Total, Unrealized Losses		$ 406

Investment securities - Additio

Investment securities - Additional Information (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019USD ($)shares	Dec. 31, 2018USD ($)
Value of common stock	$ 14,798	$ 14,798
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	$ 7,791	$ 7,420
Atlantic Community Bankers Bank (ACBB)
Value of common stock	$ 42
U.S. Government-sponsored enterprises state and municipals
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer	10.00%	10.00%

Loans, net and allowance for _3

Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Loans, net and allowance for loan losses
Net deferred loan costs	$ 901	$ 744

Loans, net and allowance for _4

Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,858,799	$ 1,823,266
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	513,655	494,134
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	935,578	907,803
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	298,527	299,876
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 111,039	$ 121,453

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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018
Allowance for loan losses:
Beginning Balance	$ 22,105	$ 19,718	$ 21,379	$ 18,960
Charge-offs	(576)	(1,398)	(950)	(1,824)
Recoveries	51	203	101	337
Provisions	350	1,050	1,400	2,100
Ending balance	21,930	19,573	21,930	19,573
Beginning Balance	22,105	19,718	21,379	18,960
Ending balance: individually evaluated for impairment					$ 1,126	$ 1,179
Charge-offs	(576)	(1,398)	(950)	(1,824)
Ending balance: collectively evaluated for impairment					20,804	20,200
Recoveries	51	203	101	337
Ending balance: loans acquired with deteriorated credit quality	22,105	19,718	21,379	18,960	21,930	21,379
Provisions	350	1,050	1,400	2,100
Loans receivable:
Total Loans					1,858,799	1,823,266
Ending balance: individually evaluated for impairment					12,313	9,641
Ending balance: collectively evaluated for impairment					1,846,486	1,813,625
Total Loans					1,858,799	1,823,266
Ending balance	21,930	19,573	21,930	19,573
Ending balance: individually evaluated for impairment					12,313	9,641
Ending balance: collectively evaluated for impairment					1,846,486	1,813,625
Commercial
Allowance for loan losses:
Beginning Balance	5,955	5,198	5,516	5,513
Charge-offs	(10)	(2)	(87)	(2)
Recoveries	2	59	10	116
Provisions	195	(64)	703	(436)
Ending balance	6,142	5,191	6,142	5,191
Beginning Balance	5,955	5,198	5,516	5,513
Ending balance: individually evaluated for impairment					615	50
Charge-offs	(10)	(2)	(87)	(2)
Ending balance: collectively evaluated for impairment					5,527	5,466
Recoveries	2	59	10	116
Ending balance: loans acquired with deteriorated credit quality	5,955	5,198	5,516	5,513	6,142	5,516
Provisions	195	(64)	703	(436)
Loans receivable:
Total Loans					513,655	494,134
Ending balance: individually evaluated for impairment					5,915	2,237
Ending balance: collectively evaluated for impairment					507,740	491,897
Total Loans					513,655	494,134
Ending balance	6,142	5,191	6,142	5,191
Ending balance: individually evaluated for impairment					5,915	2,237
Ending balance: collectively evaluated for impairment					507,740	491,897
Real estate Commercial
Allowance for loan losses:
Beginning Balance	11,074	10,301	10,736	8,944
Charge-offs	(343)	(1,169)	(349)	(1,169)
Recoveries		30		57
Provisions	311	896	655	2,226
Ending balance	11,042	10,058	11,042	10,058
Beginning Balance	11,074	10,301	10,736	8,944
Ending balance: individually evaluated for impairment					216	403
Charge-offs	(343)	(1,169)	(349)	(1,169)
Ending balance: collectively evaluated for impairment					10,826	10,333
Recoveries		30		57
Ending balance: loans acquired with deteriorated credit quality	11,074	10,301	10,736	8,944	11,042	10,736
Provisions	311	896	655	2,226
Loans receivable:
Total Loans					935,578	907,803
Ending balance: individually evaluated for impairment					3,867	3,121
Ending balance: collectively evaluated for impairment					931,711	904,682
Total Loans					935,578	907,803
Ending balance	11,042	10,058	11,042	10,058
Ending balance: individually evaluated for impairment					3,867	3,121
Ending balance: collectively evaluated for impairment					931,711	904,682
Real estate Residential
Allowance for loan losses:
Beginning Balance	3,880	2,924	3,892
Charge-offs	(143)	(82)
Recoveries	12	57
Provisions	(134)	257
Ending balance	3,615	3,156	3,615	3,156
Beginning Balance	3,880	2,924	3,892
Ending balance: individually evaluated for impairment					295	666
Charge-offs	(143)	(82)
Ending balance: collectively evaluated for impairment					3,320	3,226
Recoveries	12	57
Ending balance: loans acquired with deteriorated credit quality	3,880	2,924	3,892	3,156	3,615	3,892
Provisions	(134)	257
Loans receivable:
Total Loans					298,527	299,876
Ending balance: individually evaluated for impairment					2,280	4,071
Ending balance: collectively evaluated for impairment					296,247	295,805
Total Loans					298,527	299,876
Ending balance	3,615	3,156	3,615	3,156
Ending balance: individually evaluated for impairment					2,280	4,071
Ending balance: collectively evaluated for impairment					296,247	295,805
Real estate Residential
Allowance for loan losses:
Beginning Balance			3,892	3,111
Charge-offs			(302)	(381)
Recoveries			16	67
Provisions			9	359
Ending balance	3,615	3,156	3,615	3,156
Beginning Balance			3,892	3,111
Charge-offs			(302)	(381)
Recoveries			16	67
Ending balance: loans acquired with deteriorated credit quality	3,615	3,156	3,892	3,111	3,615	3,892
Provisions			9	359
Loans receivable:
Total Loans					298,527	299,876
Total Loans					298,527	299,876
Ending balance	3,615	3,156	3,615	3,156
Consumer
Allowance for loan losses:
Beginning Balance	1,196	1,295	1,235	1,392
Charge-offs	(80)	(145)	(212)	(272)
Recoveries	37	57	75	97
Provisions	(22)	(39)	33	(49)
Ending balance	1,131	1,168	1,131	1,168
Beginning Balance	1,196	1,295	1,235	1,392
Ending balance: individually evaluated for impairment						60
Charge-offs	(80)	(145)	(212)	(272)
Ending balance: collectively evaluated for impairment					1,131	1,175
Recoveries	37	57	75	97
Ending balance: loans acquired with deteriorated credit quality	1,196	1,295	1,235	1,392	1,131	1,235
Provisions	(22)	(39)	33	(49)
Loans receivable:
Total Loans					111,039	121,453
Ending balance: individually evaluated for impairment					251	212
Ending balance: collectively evaluated for impairment					110,788	121,241
Total Loans					111,039	121,453
Ending balance	$ 1,131	$ 1,168	$ 1,131	$ 1,168
Ending balance: individually evaluated for impairment					251	212
Ending balance: collectively evaluated for impairment					$ 110,788	$ 121,241

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	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Allowance for loan losses:
Ending balance	$ 21,930	$ 22,105	$ 21,379	$ 19,573	$ 19,718	$ 18,960
Ending balance: individually evaluated for impairment	1,126		1,179
Ending balance: collectively evaluated for impairment	20,804		20,200
Loans receivable:
Ending balance	1,858,799		1,823,266
Ending balance: individually evaluated for impairment	12,313		9,641
Ending balance: collectively evaluated for impairment	1,846,486		1,813,625
Commercial
Allowance for loan losses:
Ending balance	6,142	5,955	5,516	5,191	5,198	5,513
Ending balance: individually evaluated for impairment	615		50
Ending balance: collectively evaluated for impairment	5,527		5,466
Loans receivable:
Ending balance	513,655		494,134
Ending balance: individually evaluated for impairment	5,915		2,237
Ending balance: collectively evaluated for impairment	507,740		491,897
Real estate Commercial
Allowance for loan losses:
Ending balance	11,042	11,074	10,736	10,058	10,301	8,944
Ending balance: individually evaluated for impairment	216		403
Ending balance: collectively evaluated for impairment	10,826		10,333
Loans receivable:
Ending balance	935,578		907,803
Ending balance: individually evaluated for impairment	3,867		3,121
Ending balance: collectively evaluated for impairment	931,711		904,682
Real estate Residential
Allowance for loan losses:
Ending balance	3,615	3,880	3,892	3,156	2,924
Ending balance: individually evaluated for impairment	295		666
Ending balance: collectively evaluated for impairment	3,320		3,226
Loans receivable:
Ending balance	298,527		299,876
Ending balance: individually evaluated for impairment	2,280		4,071
Ending balance: collectively evaluated for impairment	296,247		295,805
Consumer
Allowance for loan losses:
Ending balance	1,131	$ 1,196	1,235	$ 1,168	$ 1,295	$ 1,392
Ending balance: individually evaluated for impairment			60
Ending balance: collectively evaluated for impairment	1,131		1,175
Loans receivable:
Ending balance	111,039		121,453
Ending balance: individually evaluated for impairment	251		212
Ending balance: collectively evaluated for impairment	$ 110,788		$ 121,241

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	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 1,858,799	$ 1,823,266
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	513,655	494,134
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	935,578	907,803
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	298,527	299,876
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	298,527	299,876
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	111,039	121,453
Pass
Accounts, Notes, Loans and Financing Receivable
Loans, net	1,816,151	1,795,367
Pass | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	504,060	491,531
Pass | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	905,398	886,849
Pass | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	296,021	295,758
Pass | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	110,672	121,229
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans, net	5,434	10,160
Special Mention | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	2,029	869
Special Mention | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	3,054	8,934
Special Mention | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	351	357
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans, net	37,214	17,739
Substandard | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	7,566	1,734
Substandard | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans, net	27,126	12,020
Substandard | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans, net	2,155	3,761
Substandard | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans, net	$ 367	$ 224

Loans, net and allowance for _8

Loans, net and allowance for loan losses - Reclassification of Commercial Credits Category (Details) - Substandard - Real estate Commercial $ in Millions	6 Months Ended
	Jun. 30, 2019USD ($)
Accounts, Notes, Loans and Financing Receivable
Change in category due to financial difficulties	$ 10.4
Change in category due to construction delays	$ 5.3

Loans, net and allowance for _9

Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 9,253	$ 6,231
Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	4,494	776
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	3,044	2,663
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	1,464	2,580
Consumer
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 251	$ 212

Loans, net and allowance for_10

Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 14,349	$ 15,392
Current	1,844,450	1,807,874
Total Loans	1,858,799	1,823,266
Loans > 90 Days and Accruing	341	923
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,010	6,104
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	745	2,134
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	9,594	7,154
Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	5,023	1,828
Current	508,632	492,306
Total Loans	513,655	494,134
Loans > 90 Days and Accruing	8
Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	385	973
Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	136	79
Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,502	776
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,446	4,843
Current	931,132	902,960
Total Loans	935,578	907,803
Loans > 90 Days and Accruing	148	73
Real estate Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,200	1,889
Real estate Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	54	218
Real estate Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,192	2,736
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Loans	298,527	299,876
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,006	7,461
Current	294,521	292,415
Total Loans	298,527	299,876
Loans > 90 Days and Accruing	185	850
Real estate Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,930	2,486
Real estate Residential | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	427	1,545
Real estate Residential | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,649	3,430
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due	874	1,260
Current	110,165	120,193
Total Loans	111,039	121,453
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	495	756
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	128	292
Consumer | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 251	$ 212

Loans, net and allowance for_11

Loans, net and allowance for loan losses - Summarized Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 8,322	$ 6,259	$ 8,322	$ 6,259	$ 5,653
Unpaid Principal Balance, With no related allowance, Total	9,196	7,532	9,196	7,532	7,017
Average Recorded Investment, With no related allowance, Total	8,797	6,442	7,748	6,471	6,468
Interest Income Recognized, With no related allowance, Total	31	29	68	56	117
Recorded Investment, With an allowance recorded, Total	3,991	4,283	3,991	4,283	3,988
Unpaid Principal Balance, With an allowance recorded, Total	4,552	4,553	4,552	4,553	4,386
Related Allowance, With an allowance recorded, Total	1,126	1,029	1,126	1,029	1,179
Average Recorded Investment, With an allowance recorded, Total	4,202	4,665	4,130	4,506	4,288
Interest Income Recognized, With an allowance recorded, Total	17	16	40	34	70
Recorded Investment, Total	12,313	10,542	12,313	10,542	9,641
Unpaid Principal Balance, Total	13,748	12,085	13,748	12,085	11,403
Related Allowance, With an allowance recorded, Total	1,126	1,029	1,126	1,029	1,179
Average Recorded Investment, Total	12,999	11,107	11,878	10,977	10,756
Interest Income Recognized, Total	48	45	108	90	187
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	4,495	1,182	4,495	1,182	1,562
Unpaid Principal Balance, With no related allowance, Total	4,931	1,355	4,931	1,355	1,900
Average Recorded Investment, With no related allowance, Total	5,284	1,197	4,043	1,224	1,318
Interest Income Recognized, With no related allowance, Total	17	16	34	33	67
Recorded Investment, With an allowance recorded, Total	1,420	1,100	1,420	1,100	675
Unpaid Principal Balance, With an allowance recorded, Total	1,432	1,124	1,432	1,124	675
Related Allowance, With an allowance recorded, Total	615	146	615	146	50
Average Recorded Investment, With an allowance recorded, Total	1,180	1,117	1,012	1,139	1,006
Interest Income Recognized, With an allowance recorded, Total	5	8	12	16	30
Recorded Investment, Total	5,915	2,282	5,915	2,282	2,237
Unpaid Principal Balance, Total	6,363	2,479	6,363	2,479	2,575
Related Allowance, With an allowance recorded, Total	615	146	615	146	50
Average Recorded Investment, Total	6,464	2,314	5,055	2,363	2,324
Interest Income Recognized, Total	22	24	46	49	97
Real estate Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,957	2,871	2,957	2,871	1,969
Unpaid Principal Balance, With no related allowance, Total	3,116	3,262	3,116	3,262	2,299
Average Recorded Investment, With no related allowance, Total	2,528	2,921	2,341	2,910	2,822
Interest Income Recognized, With no related allowance, Total	10	9	23	15	28
Recorded Investment, With an allowance recorded, Total	910	1,755	910	1,755	1,152
Unpaid Principal Balance, With an allowance recorded, Total	1,380	1,876	1,380	1,876	1,323
Related Allowance, With an allowance recorded, Total	216	502	216	502	403
Average Recorded Investment, With an allowance recorded, Total	1,174	2,079	1,166	1,853	1,676
Interest Income Recognized, With an allowance recorded, Total	5	4	10	10	18
Recorded Investment, Total	3,867	4,626	3,867	4,626	3,121
Unpaid Principal Balance, Total	4,496	5,138	4,496	5,138	3,622
Related Allowance, With an allowance recorded, Total	216	502	216	502	403
Average Recorded Investment, Total	3,702	5,000	3,507	4,763	4,498
Interest Income Recognized, Total	15	13	33	25	46
Real estate Residential
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	619	2,146	619	2,146	1,970
Unpaid Principal Balance, With no related allowance, Total	888	2,848	888	2,848	2,658
Average Recorded Investment, With no related allowance, Total	740	2,218	1,150	2,210	2,193
Interest Income Recognized, With no related allowance, Total	4	4	11	8	22
Recorded Investment, With an allowance recorded, Total	1,661	1,425	1,661	1,425	2,101
Unpaid Principal Balance, With an allowance recorded, Total	1,740	1,550	1,740	1,550	2,328
Related Allowance, With an allowance recorded, Total	295	378	295	378	666
Average Recorded Investment, With an allowance recorded, Total	1,848	1,458	1,932	1,504	1,585
Interest Income Recognized, With an allowance recorded, Total	7	4	18	8	22
Recorded Investment, Total	2,280	3,571	2,280	3,571	4,071
Unpaid Principal Balance, Total	2,628	4,398	2,628	4,398	4,986
Related Allowance, With an allowance recorded, Total	295	378	295	378	666
Average Recorded Investment, Total	2,588	3,676	3,082	3,714	3,778
Interest Income Recognized, Total	11	8	29	16	44
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	251	60	251	60	152
Unpaid Principal Balance, With no related allowance, Total	261	67	261	67	160
Average Recorded Investment, With no related allowance, Total	245	106	214	127	135
Recorded Investment, With an allowance recorded, Total	20	3	20	3	60
Unpaid Principal Balance, With an allowance recorded, Total		3		3	60
Related Allowance, With an allowance recorded, Total		3		3	60
Average Recorded Investment, With an allowance recorded, Total		11		10	21
Recorded Investment, Total	251	63	251	63	212
Unpaid Principal Balance, Total	261	70	261	70	220
Related Allowance, With an allowance recorded, Total		3		3	60
Average Recorded Investment, Total	$ 245	$ 117	$ 234	$ 137	$ 156

Loans, net and allowance for_12

Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2019USD ($)loan	Jun. 30, 2019USD ($)loan	Jun. 30, 2018USD ($)loanpayment	Dec. 31, 2018USD ($)
Number of loans modified | loan	0
Pre-Modification Outstanding Recorded Investment		$ 2,677	$ 3,307	$ 2,779
Number of defaults on loans restructured | payment			1
Real estate Commercial
Number of loans modified | loan	2	2	1
Number of defaults on loans restructured		$ 335
Loans modified as troubled debt restructuring	$ 340	$ 340	$ 340
Real estate Residential
Loans modified as troubled debt restructuring			$ 58

Other assets - Components of Ot

Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other assets.
Other real estate owned	$ 408	$ 376
Investment in low income housing partnership	7,139	7,377
Mortgage servicing rights	719	718
Bank owned life insurance	34,667	34,288
Restricted equity securities	7,833	7,462
Net deferred tax asset	3,919	5,081
Other assets	12,940	8,435
Total	$ 67,625	$ 63,737

Fair value estimates - Transfer

Fair value estimates - Transfers Between Levels (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Fair value estimates
Fair value of assets transfers from level 1 to level 2	$ 0	$ 0
Fair value of assets transfers from level 2 to level 1	0	0
Fair value of liabilities transfers from level 1 to level 2	0	0
Fair value of liabilities transfers from level 2 to level 1	0	0
Fair value of assets transfers into level 3	0	0
Fair value of assets transfers out of level 3	0	0
Fair value of liabilities transfers into level 3	0	0
Fair value of liabilities transfers out of level 3	$ 0	$ 0

Fair value estimates - Schedule

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	$ 262,598	$ 270,496
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	24,084	25,592
U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	93,489	92,818
State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	12,842	13,853
State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	70,135	85,954
Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	10,784	12,629
Mortgage-backed Securities, U.S. Government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	50,331	38,836
Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	283	291
Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	1,025	553
Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	3,807	108
Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(4,182)	(138)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	24,367	25,883
Level 1 | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	24,084	25,592
Level 1 | Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	283	291
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	238,231	244,613
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	93,489	92,818
Level 2 | State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	12,842	13,853
Level 2 | State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	70,135	85,954
Level 2 | Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	10,784	12,629
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	50,331	38,836
Level 2 | Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	1,025	553
Level 2 | Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	3,807	108
Level 2 | Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	$ (4,182)	$ (138)

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	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 2,865	$ 2,809
Other real estate owned	250	234
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	2,865	2,809
Other real estate owned	$ 250	$ 234

Fair value estimates - Addition

Fair value estimates - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Level 3 - Nonrecurring Basis - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other real estate owned
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 250	$ 234
Range and weighted average of appraisal adjustments	32.00%	38.90%
Range and weighted average of liquidation expenses	5.00%	5.00%
Other real estate owned | Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	20.00%	26.00%
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	43.30%	73.30%
Range and weighted average of liquidation expenses	6.00%	6.00%
Impaired loans
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 2,865	$ 2,809
Range and weighted average of appraisal adjustments	56.70%	61.80%
Range and weighted average of liquidation expenses	5.40%	4.40%
Impaired loans | Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	7.60%	7.10%
Range and weighted average of liquidation expenses	3.00%	3.00%
Impaired loans | Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	97.00%	97.00%
Range and weighted average of liquidation expenses	6.00%	6.00%

Fair value estimates - Carrying

Fair value estimates - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investment securities:
Available-for-sale	$ 261,665	$ 269,682
Common equity securities	283	291
Held-to-maturity	8,151	8,380
Loans held for sale	831	749
Mortgage servicing rights	719	718
Other assets	67,625	63,737
Carrying Value
Financial assets:
Cash and cash equivalents	29,962	32,616
Investment securities:
Available-for-sale	261,665	269,682
Common equity securities	283	291
Held-to-maturity	7,969	8,361
Loans held for sale		749
Net loans	1,836,869	1,801,887
Accrued interest receivable	7,303	7,115
Mortgage servicing rights	719	718
Restricted equity securities	7,833	7,462
Interest rate floor	1,025	553
Interest rate swaps	3,807	108
Total assets	2,157,435	2,129,542
Financial liabilities:
Deposits	1,876,799	1,875,022
Short-term borrowings	82,700	86,500
Long-term debt	52,980	37,906
Accrued interest payable	1,058	1,195
Interest rate swap	4,182	138
Total liabilities	2,017,719	2,000,761
Fair Value
Financial assets:
Cash and cash equivalents	29,962	32,616
Investment securities:
Available-for-sale	261,665	269,682
Common equity securities	283	291
Held-to-maturity	8,151	8,380
Loans held for sale		749
Net loans	1,830,139	1,762,449
Accrued interest receivable	7,303	7,115
Mortgage servicing rights	1,712	1,710
Restricted equity securities	7,833	7,462
Interest rate floor	1,025	553
Interest rate swaps	3,807	108
Total assets	2,151,880	2,091,115
Financial liabilities:
Deposits	1,862,246	1,874,520
Short-term borrowings	82,700	86,500
Long-term debt	53,338	38,071
Accrued interest payable	1,058	1,195
Interest rate swap	4,182	138
Total liabilities	2,003,524	2,000,424
Level 1
Financial assets:
Cash and cash equivalents	29,962	32,616
Investment securities:
Available-for-sale	24,084	25,952
Common equity securities	283	291
Level 2
Investment securities:
Available-for-sale	237,581	244,090
Held-to-maturity	8,151	8,380
Loans held for sale		749
Accrued interest receivable	7,303	7,115
Mortgage servicing rights	1,712	1,710
Restricted equity securities	7,833	7,462
Interest rate floor	1,025	553
Interest rate swaps	3,807	108
Financial liabilities:
Deposits	1,862,246	1,874,520
Short-term borrowings	82,700	86,500
Long-term debt	53,338	38,071
Accrued interest payable	1,058	1,195
Interest rate swap	4,182	138
Level 3
Investment securities:
Net loans	$ 1,830,139	$ 1,762,449

Employee benefit plans - Compon

Employee benefit plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net periodic pension cost:
Labor and Related Expense	$ 8,037	$ 7,390	$ 15,632	$ 14,345
Pension Benefits
Net periodic pension cost:
Interest cost	192	156	320	156
Expected return on plan assets	(325)	(240)	(542)	(240)
Amortization of unrecognized net gain	68	49	113	49
Net periodic benefit cost	$ (65)	$ (35)	$ (109)	$ (35)

Employee benefit plans - Salari

Employee benefit plans - Salaries and Employee Benefits Expense - Profit Sharing (Details) - Retirement Profit Sharing Plan - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2018	Jun. 30, 2019
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			6 Months Ended		12 Months Ended	15 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Mar. 31, 2019
Employee Benefit Plans
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 415		$ 403	$ 755	$ 743
2008 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense			31		62
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 240		$ 37	$ 157	$ 43
Common stock available for grant as awards	61,346			61,346
Non-Performance-based restricted stock | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units vesting period		3 years				3 years
Performance-based restricted stock units | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units vesting period		3 years				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				3 years
Restricted Stock | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares				17,345	17,345
Unrecognized compensation expense	$ 1,071			$ 1,071
Weighted average vesting period				1 year 8 months 12 days
Restricted stock units (RSUs) | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares				11,468	11,468

Derivatives and hedging activ_3

Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)	Jun. 30, 2019USD ($)security	Dec. 31, 2018USD ($)
Derivatives, Fair Value
Asset Derivatives		$ 4,833	$ 661
Liability Derivatives		4,183	138
Interest Receivable		7,303	7,115
Interest Payable		1,058	1,195
Derivatives designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives		1,025	553
Derivatives designated as hedging instruments | Interest Rate Floor
Derivatives, Fair Value
Notional amount		25
Asset Derivatives			553
Derivatives designated as hedging instruments | Interest Rate Floor | Other Assets.
Derivatives, Fair Value
Asset Derivatives		1,025
Derivatives designated as hedging instruments | Interest Rate Swaps | Other Assets.
Derivatives, Fair Value
Asset Derivatives		3,807	108
Derivatives designated as hedging instruments | Interest Rate Swaps | Other Liabilities.
Derivatives, Fair Value
Liability Derivatives		4,182	138
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives		3,807	108
Liability Derivatives		$ 4,182	138
Derivatives not designated as hedging instruments | Interest Rate Swaps
Derivatives, Fair Value
Number of instruments held | security		22
Notional amount		$ 123,351
Interest Receivable			13
Interest Payable			$ 13
Forecast | Cash Flow Hedge | Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a reduction to interest income	$ 64

Derivatives and hedging activ_4

Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - Interest income - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Reclassified from Accumulated OCI into Income		$ (31)
Cash Flow Hedge | Interest Rate Floor
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Recognized in OCI on Derivative	$ 427	474
Amount of Gain Recognized in OCI Included Component	532	827
Amount of Gain Recognized in OCI Excluded Component	(105)	(353)
Amount of Loss Reclassified from Accumulated OCI into Income	(16)	(31)
Amount of Loss Reclassified from Accumulated OCI into Income Excluded Component	$ (16)	$ (31)

Derivatives and hedging activ_5

Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on the Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Derivative Instruments, Gain (Loss)
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded	$ 443	$ 506
Interest income
Derivative Instruments, Gain (Loss)
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded		(31)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income		(31)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component		$ (31)

Derivatives and hedging activ_6

Derivatives and hedging activities - Effect of Other Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Fee Income | Other income/(expense)
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ 744	$ 53	$ 1,136	$ 53
Derivatives not designated as hedging instruments | Interest Rate Swaps | Other non-interest income
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ (236)	$ 19	$ (346)	$ 85

Derivatives and hedging activ_7

Derivatives and hedging activities - Credit-risk-related Contingent Features (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivatives
Derivative Liability	$ 4,183	$ 138
Credit-risk contract
Derivatives
Derivative Liability	376	29
Derivative, Collateral, Obligation to Return Cash	$ 3,310	$ 0

Derivatives and hedging activ_8

Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Offsetting of Derivative Assets
Gross Amounts of Recognized Assets	$ 4,833	$ 661
Net Amounts of Assets presented in the Balance Sheet	4,833	661
Net Amount	4,833	661
Offsetting of Derivative Liabilities
Gross Amounts of Recognized Liabilities	4,183	138
Net Amounts of Assets presented in the Balance Sheet	4,183	138
Net Amount	$ 4,183	$ 138

Borrowings - Summary of Short-t

Borrowings - Summary of Short-term Borrowings (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Short-term Debt
Ending Balance	$ 82,700	$ 86,500
FHLB advances
Short-term Debt
Ending Balance	82,700	86,500
Average Balance	105,212	133,834
Maximum Month-End Balance	$ 133,725	$ 189,275
Weighted Average Rate for	2.70%	2.05%
Weighted Average Rate at	2.46%	2.62%

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Short-term Debt
Decrease in borrowings	$ 3,800
Long term borrowings	16,000
Peoples Bank
Short-term Debt
Maximum borrowing capacity	706,808	$ 700,169
Outstanding amount in borrowings	$ 135,680	$ 124,406

Borrowings - Long-term debt adv

Borrowings - Long-term debt advances (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument
Long-term debt	$ 52,980	$ 37,906
Long-term 4.09% adjustable rate debt due December 2019
Debt Instrument
Long-term debt	$ 3,000	3,000
Adjustable interest rate (as a percent)	4.09%
Long-term 3.63% adjustable rate debt due December 2019
Debt Instrument
Long-term debt	$ 6,300	6,300
Adjustable interest rate (as a percent)	3.63%
Long-term 1.62% fixed rate debt due December 2019
Debt Instrument
Long-term debt	$ 10,000	10,000
Fixed interest rate (as a percent)	1.62%
Long-term 1.74% fixed rate debt due June 2020
Debt Instrument
Long-term debt	$ 5,000	5,000
Fixed interest rate (as a percent)	1.74%
Long-term 2.22% fixed rate debt due June 2020
Debt Instrument
Long-term debt	$ 6,000
Fixed interest rate (as a percent)	2.22%
Long-term 1.84% fixed rate debt due December 2020
Debt Instrument
Long-term debt	$ 5,000	5,000
Fixed interest rate (as a percent)	1.84%
Long-term 1.99% fixed rate debt due June 2021
Debt Instrument
Long-term debt	$ 10,000
Fixed interest rate (as a percent)	1.99%
Long-term 4.69% fixed rate debt due March 2023
Debt Instrument
Long-term debt	$ 7,680	$ 8,606
Fixed interest rate (as a percent)	4.69%

Borrowings - Maturities of long

Borrowings - Maturities of long-term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Borrowings
2019	$ 20,248
2020	17,963
2021	12,058
2022	2,156
2023	555
Total long-term debt	$ 52,980	$ 37,906

Borrowings - Fixed and adjustab

Borrowings - Fixed and adjustable rate information (Details)	Jun. 30, 2019USD ($)
Debt Instrument
Convertible Debt	$ 0
Long-term debt at fixed rates	43,680,000
Long-term debt at adjustable rates	9,300,000
FHLB long-term advances	16,000,000
Minimum
Debt Instrument
Long-term debt at adjustable rates	1.21
Maximum
Debt Instrument
Long-term debt at adjustable rates	$ 1.57

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income taxes
Federal statutory rate	11.80%	12.00%	11.20%	11.80%
Investment and other tax credits	$ 390	$ 273	$ 778	$ 543