Peoples Financial Services (PFIS) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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		7,343,240
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001056943
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Cash and due from banks:
Cash and due from banks	$ 22,181	$ 26,943
Interest-bearing deposits in other banks	13,146	4,210
Total cash and due from banks	35,327	31,153
Investment securities:
Available-for-sale	302,884	330,478
Equity investments carried at fair value	299	423
Held-to-maturity: Fair value March 31, 2020, $7,687; December 31, 2019, $7,889	7,520	7,656
Total investment securities	310,703	338,557
Loans	2,023,155	1,938,240
Less: allowance for loan losses	25,686	22,677
Net loans	1,997,469	1,915,563
Loans held for sale	270	986
Premises and equipment, net	48,619	47,932
Accrued interest receivable	7,283	6,981
Goodwill	63,370	63,370
Intangible assets, net	1,411	1,565
Other assets	79,320	69,220
Total assets	2,543,772	2,475,327
Deposits:
Noninterest-bearing	467,315	463,238
Interest-bearing	1,542,680	1,508,251
Total deposits	2,009,995	1,971,489
Short-term borrowings	164,150	152,150
Long-term debt	32,250	32,733
Accrued interest payable	1,336	1,277
Other liabilities	29,978	18,668
Total liabilities	2,237,709	2,176,317
Stockholders’ equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,343,240 shares at March 31, 2020 and 7,388,480 shares at December 31, 2018	14,670	14,777
Capital surplus	133,159	135,251
Retained earnings	154,806	152,187
Accumulated other comprehensive income (loss)	3,428	(3,205)
Total stockholders’ equity	306,063	299,010
Total liabilities and stockholders’ equity	$ 2,543,772	$ 2,475,327

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position
Held-to-maturity, Fair value	$ 7,687	$ 7,889
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,343,240	7,388,480
Common stock, shares outstanding	7,343,240	7,388,480

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest and fees on loans:
Taxable	$ 20,917	$ 20,103
Tax-exempt	1,031	1,099
Interest and dividends on investment securities:
Taxable	1,548	1,010
Tax-exempt	299	562
Dividends	23	19
Interest on interest-bearing deposits in other banks	24	8
Total interest income	23,842	22,801
Interest expense:
Interest on deposits	3,503	3,411
Interest on short-term borrowings	573	813
Interest on long-term debt	205	280
Total interest expense	4,281	4,504
Net interest income	19,561	18,297
Provision for loan losses	3,500	1,050
Net interest income after provision for loan losses	16,061	17,247
Noninterest income:
Mortgage banking income	137	148
Bank owned life insurance income	187	186
Interest rate swap revenue	470	280
Net (losses) gains on equity investment securities	(123)	1
Net gains on sale of investment securities available-for-sale	267
Total noninterest income	3,550	3,416
Noninterest expense:
Salaries and employee benefits expense	7,856	7,595
Net occupancy and equipment expense	3,079	2,961
Amortization of intangible assets	154	192
Professional fees and outside services	365	331
FDIC insurance and assessments	74	259
Donations	338	332
Other expenses	1,785	1,820
Total noninterest expense	13,651	13,490
Income before income taxes	5,960	7,173
Income tax expense	679	761
Net income	5,281	6,412
Other comprehensive income:
Unrealized gain on investment securities available-for-sale	7,629	2,439
Reclassification adjustment for net gain on sales included in net income	(267)
Change in derivative fair value	1,036	63
Other comprehensive income	8,398	2,502
Income tax expense	1,765	526
Other comprehensive income, net of income taxes	6,633	1,976
Comprehensive income	$ 11,914	$ 8,388
Net income:
Basic	$ 0.72	$ 0.87
Diluted	$ 0.71	$ 0.87
Average common shares outstanding:
Basic	7,379,438	7,399,054
Diluted	7,406,291	7,408,536
Dividends declared	$ 0.36	$ 0.34
Service charges, fees and commissions
Noninterest income:
Revenue from contracts with customers	$ 1,605	$ 1,719
Merchant services income
Noninterest income:
Revenue from contracts with customers	114	198
Commission and fees on fiduciary activities
Noninterest income:
Revenue from contracts with customers	506	507
Wealth management income
Noninterest income:
Revenue from contracts with customers	$ 387	$ 377

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, 2018	$ 14,798	$ 135,310	$ 136,582	$ (8,076)	$ 278,614
Net income			6,412		6,412
Other comprehensive income, net of income taxes				1,976	1,976
Dividends declared			(2,516)		(2,516)
Stock based compensation		83			83
Balance at Mar. 31, 2019	14,798	135,393	140,478	(6,100)	284,569
Balance at Dec. 31, 2019	14,777	135,251	152,187	(3,205)	299,010
Net income			5,281		5,281
Other comprehensive income, net of income taxes				6,633	6,633
Dividends declared			(2,662)		(2,662)
Stock based compensation		5			5
Share retirement	(107)	(2,097)			(2,204)
Balance at Mar. 31, 2020	$ 14,670	$ 133,159	$ 154,806	$ 3,428	$ 306,063

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Statement of Stockholders' Equity
Dividends declared (in dollars per share) | $ / shares	$ 0.36
Repurchase and retirement, shares | shares	53,746

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income	$ 5,281	$ 6,412
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	735	596
Amortization of right-of-use lease asset	104	92
Amortization of deferred loan costs	39	(107)
Amortization of intangibles	154	192
Amortization of low income housing partnerships	120	119
Provision for loan losses	3,500	1,050
Net unrealized gain (loss) on equity investment securities	123	(1)
Net gain (loss) on sale of other real estate owned	(4)	8
Loans originated for sale	(2,297)	(1,501)
Proceeds from sale of loans originated for sale	3,023	2,278
Net gain on sale of loans originated for sale	(10)	(28)
Net amortization of investment securities	281	474
Net gain on sale of investment securities available-for-sale	(267)
Bank owned life insurance income	(187)	(186)
Deferred income tax expense	619	13
Stock based compensation	5	83
Net change in:
Accrued interest receivable	(302)	(96)
Other assets	(10,038)	(3,836)
Accrued interest payable	59	(317)
Other liabilities	10,014	2,545
Net cash provided by operating activities	10,952	7,790
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale	26,502
Proceeds from repayments of investment securities:
Available-for-sale	17,522	14,287
Held-to-maturity	135	196
Purchases of investment securities:
Available-for-sale	(9,080)	(13,021)
Net purchase of restricted equity securities	(482)	(964)
Net increase in lending activities	(86,062)	(26,629)
Purchases of premises and equipment	(627)	(1,062)
Proceeds from the sale of premises and equipment		23
Proceeds from sale of other real estate owned	157	84
Net cash used in investing activities	(51,935)	(27,086)
Cash flows from financing activities:
Net increase (decrease) in deposits	38,506	(6,792)
Repayment of long-term debt	(483)	(460)
Net increase in short-term borrowings	12,000	22,500
Retirement of common stock	(2,204)
Cash dividends paid	(2,662)	(2,516)
Net cash provided by financing activities	45,157	12,732
Net increase (decrease) in cash and cash equivalents	4,174	(6,564)
Cash and cash equivalents at beginning of period	31,153	32,616
Cash and cash equivalents at end of period	35,327	26,052
Cash paid during the period for:
Interest	4,222	4,821
Income taxes		1,100
Noncash items:
Transfers of loans to other real estate	626	85
Right-of-use assets	899	5,513
Lease liabilities for operating leases	$ 899	$ 5,513

Summary of significant accounti

Summary of significant accounting policies	3 Months Ended
	Mar. 31, 2020
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-nine full-service community banking offices located within the Bucks, 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 three months ended and as of March 31, 2020, 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, 2019. Significant events: COVID-19 In December 2019, a novel strain of coronavirus (COVID-19) was reported to have surfaced in China, and has since spread to the United States and throughout the world. On March 11, 2020, the World Health Organization declared COVID-19, a global pandemic. In the United States, the rapid spread of the COVID-19 virus invoked various federal and state authorities to make emergency declarations and issue executive orders to limit the spread of the disease. Measures included restrictions on travel, limitations on public gatherings, implementation of social distancing protocols, school closings, orders to shelter in place and mandates to close all non-essential businesses to the public. Concerns about the spread of the disease and its anticipated negative impact on economic activity, severely disrupted domestic financial markets prompting the Federal Reserve System’s Federal Open Market Committee (“FOMC”) to aggressively cut the target federal funds rate to a range of 0% to 0.25%, including a 50 basis point reduction in the target federal funds rate on March 3, 2020 and an additional 100 basis point reduction on March 15, 2020. In addition, the Federal Reserve rolled out various market support programs to ease the stress on financial markets. As the COVID-19 events unfolded throughout the first quarter of 2020, the Company implemented its pandemic plan and executed various strategies and protocols intended to protect its employees, maintain services for customers, assure the functional continuity of the Company’s operating systems, controls and processes, and mitigate financial risks posed by changing market conditions. The Company imposed business travel restrictions, implemented quarantine and work from home protocols and physically separated, to the extent possible, the critical operations site workforce that are unable to work remotely. To limit the risk of virus spread, the Company implemented drive-thru only and by appointment operating protocols for its bank branch network. The Company also maintained active communications with its primary regulatory agencies and critical vendors in an effort to assure that all mission-critical activities and functions would be performed in line with regulatory expectations and the Company’s service standards. The impact of the COVID-19 pandemic is fluid and continues to evolve, adversely affecting many of the Bank’s clients. The COVID-19 pandemic and its associated impacts on trade (including supply chains), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets, and has had an adverse effect on our business, financial condition and results of operations. The ultimate extent of the impact of the COVID-19 pandemic on our business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets and our customers, employees and vendors. Our business, financial condition and results of operations generally rely upon the ability of our borrowers to repay their loans, the value of collateral underlying our secured loans, and demand for loans and other products and services we offer, which are highly dependent on the business environment in our primary markets where we operate and in the United States as a whole. The full impact of COVID-19 is unknown and rapidly evolving. It has caused substantial disruption in U.S. economies, markets, and employment. The outbreak may have a significant adverse impact on certain industries the Company serves. During March, the Company reviewed its commercial loan and commercial real estate portfolios and determined approximately $1.2 billion or 73% is categorized as non-life sustaining and subject to shutdown. Based on management’s application of its allowance for loan losses methodology and changes to the economic qualitative factors relating to the adverse impact of the COVID-19 crisis on economic conditions and the increased inherent risk in the loan portfolio, first quarter 2020 results included $3.5 million in provision for loan and lease losses. Because of the significant uncertainties related to the ultimate duration of the COVID-19 pandemic and its potential effects on clients and prospects, and on the national and local economy as a whole, there can be no assurances as to how the crisis may ultimately affect the Company’s loan portfolio. With respect to the Company’s lending activities, the Company implemented a customer payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19 related challenges. On March 22, 2020, the federal bank regulatory agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.” This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that, in consultation with the FASB staff, the federal bank regulatory agencies concluded that short-term modifications (e.g. six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not troubled debt restructurings (“TDRs”). Section 4013 of the CARES Act also addresses COVID-19 related modifications and specifies that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. Through May 6, 2020, the Company granted payment deferral requests for up to four months to 390 business loans and for up to six months on 451 consumer loans, representing $313.6 million of the Company’s loan balances. Loans in deferment status will continue to accrue interest during the deferment period unless otherwise classified as nonperforming. The Company has also participated as a lender in the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), Paycheck Protection Program, a $349 billion specialized low-interest loan program funded by the U.S. Treasury Department and administered by the U.S. Small Business Administration (“SBA”). The Paycheck Protection Program (“PPP”) provides borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related business operating costs. Between April 3 and April 17, 2020, the Company processed 836 applications providing over $177.9 million in loans through Phase I of the SBA PPP with an average loan amount of $213 thousand. Through May 6, 2020, the Company processed another 455 applications providing over $24.0 million in loans through Phase II of the PPP with an average loan amount of $53 thousand furthering Peoples’ commitment to support small businesses. Funding these loans will generate approximately $6.6 million of SBA processing fees. The Company intends to utilize the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) to replace liquidity used to fund PPP loans. The Company also has goodwill with a net carrying value of $63.4 million at March 31, 2020 and December 31, 2019. The Company completes a goodwill impairment analysis at least annually, or more often if events and circumstances indicate that there may be impairment. In connection with the emergence of COVID-19 as a global pandemic and the decline in our stock price during the 2020 first quarter, management performed a qualitative assessment to determine whether goodwill was impaired. Management assessed factors that could potentially indicate impairment, including: regional and national economic conditions, banking industry conditions and trends, historical financial performance, and other banking specific factors. After assessing the factors in totality, management determined that it was more likely than not that the fair value of the Company is higher than its book value as of March 31, 2020, and, therefore, goodwill is not considered impaired. In the event of a sustained decline in share price or further deterioration in the macroeconomic outlook, continued assessments of the Company's goodwill balance will likely be required in future periods with no assurance that the future impairment assessments or tests will not result in a charge to earnings. Recent accounting standards: 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 November 2019, the FASB voted to defer the adoption date for smaller reporting companies from 2020 to 2023. The Company qualifies as a smaller reporting company and therefore guidance is effective for the Company in 2023. 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 January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The Company adopted this guidance effective January 1, 2020. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” which 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. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance on January 1, 2020 did not have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)”, which provides changes to the disclosure requirements for defined benefit plans. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are a result of the disclosure framework project that focuses on improvements to the effectiveness of disclosures in the notes to financial statements. The amendments remove and add certain disclosure requirements. The disclosure requirements being removed relating to public companies are (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, (2) the amount and timing of plan assets expected to be returned to the employer, (3) the 2001 disclosure requirement relating to Japanese Welfare Pension Insurance Law, (4) related party disclosures about the amount of future annual benefits covered by insurance, and (5) the effects of a one-percentage-point change in assumed health care cost trends on the benefit cost and obligation. The disclosure requirements being added relating to public companies are (1) the weighted-average interest crediting rates for cash balance plans, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. ASU 2018-14 is effective for the Company on January 1, 2021 and early adoption is permitted. The amendments should be applied retrospectively however, the Company does not expect the guidance to have a material impact on its disclosures to the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which aims to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2019-12 on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” , which provides optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. The Company is currently evaluating the impact that adopting this new accounting standard will have on the consolidated financial statements.

Other Comprehensive Income (Los

Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2020
Other Comprehensive Income (Loss)
Other Comprehensive Income (Loss)	2. Other comprehensive income (loss): The components of other comprehensive income (loss) and their related tax effects are reported in the consolidated statements of income and comprehensive income. The accumulated other comprehensive income (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 income (loss) included in stockholders’ equity at March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 Net unrealized gain on investment securities available-for-sale $ 9,197 $ 1,835 Income tax 1,932 385 Net of income taxes 7,265 1,450 Benefit plan adjustments (6,579) (6,579) Income tax (1,382) (1,382) Net of income taxes (5,197) (5,197) Derivative adjustments 1,723 687 Income tax 363 144 Net of income taxes 1,360 543 Accumulated other comprehensive income (loss) $ 3,428 $ (3,205)

Earnings per share

Earnings per share	3 Months Ended
	Mar. 31, 2020
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. The following table presents the calculation of both basic and diluted earnings per share of common stock for the three months ended March 31,2020 and 2019: 2020 2019 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net income $ 5,281 $ 5,281 $ 6,412 $ 6,412 Average common shares outstanding 7,379,438 7,406,291 7,399,054 7,408,536 Earnings per share $ 0.72 $ 0.71 $ 0.87 $ 0.87

Investment securities

Investment securities	3 Months Ended
	Mar. 31, 2020
Investment securities
Investment securities	4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at March 31, 2020 and December 31, 2019 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair March 31, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 21,471 $ 650 $ 22,121 U.S. government-sponsored enterprises 83,028 1,562 84,590 State and municipals: Taxable 32,116 772 $ 328 32,560 Tax-exempt 38,392 1,596 8 39,980 Residential mortgage-backed securities: U.S. government agencies 7,125 178 3 7,300 U.S. government-sponsored enterprises 98,880 4,143 3 103,020 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,675 638 13,313 Total $ 293,687 $ 9,539 $ 342 $ 302,884 Held-to-maturity: Tax-exempt state and municipals $ 6,851 $ 153 $ 15 $ 6,989 Residential mortgage-backed securities: U.S. government agencies 28 28 U.S. government-sponsored enterprises 641 30 1 670 Total $ 7,520 $ 183 $ 16 $ 7,687 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 23,966 162 $ $ 24,128 U.S. government-sponsored enterprises 87,156 $ 181 227 87,110 State and municipals: Taxable 35,418 295 815 34,898 Tax-exempt 59,127 1,056 20 60,163 Residential mortgage-backed securities: U.S. government agencies 8,368 112 10 8,470 U.S. government-sponsored enterprises 101,914 1,011 77 102,848 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,694 171 4 12,861 Total $ 328,643 $ 2,988 $ 1,153 $ 330,478 Held-to-maturity: Tax-exempt state and municipals $ 6,852 $ 208 $ $ 7,060 Residential mortgage-backed securities: U.S. government agencies 31 31 U.S. government-sponsored enterprises 773 25 798 Total $ 7,656 $ 233 $ $ 7,889 Equity Securities Our equity securities portfolio consists of stock of two other financial institutions. At March 31, 2020 and December 31, 2019, we had $299 and $423 respectively, in equity securities recorded at fair value. At March 31, 2020, the fair value of our equity portfolio exceeded the cost basis by $22. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31 2020 (in thousands): For the Three Months Ended March 31, 2020 2019 Net (loss) gains recognized during the period on equity securities $ (123) $ 1 Less: Net gains (loss) recognized during the period on equity securities sold during the period Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (123) $ 1 Restricted Investment In Stock Restricted investment in stock includes FHLB with a carrying cost of $10,642 and $10,159 at March 31, 2020 and December 31, 2019, respectively, Atlantic Community Bankers Bank (“ACBB”) stock with a carrying cost of $42, and VISA Class B stock with a carrying cost of $0 at March 31, 2020 and December 31, 2019, 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 bank’s use of FHLB’s services. The increase in FHLB stock from December 31, 2019 is due to an increase in short term borrowings at FHLB. 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 (1.6228 as of March 31, 2020), 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 March 31, 2020, 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 March 31, 2020, is summarized as follows: Fair March 31, 2020 Value Within one year $ 37,800 After one but within five years 79,696 After five but within ten years 18,995 After ten years 39,313 175,804 Mortgage-backed and other amortizing securities 127,080 Total $ 302,884 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at March 31, 2020, is summarized as follows: Amortized Fair March 31, 2020 Cost Value After ten years $ 6,851 $ 6,989 6,851 6,989 Mortgage-backed securities 669 698 Total $ 7,520 $ 7,687 Securities with a carrying value of $133,308 and $157,047 at March 31, 2020 and December 31, 2019, respectively, were pledged to secure public deposits and certain other deposits as required or permitted by law. Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At March 31, 2020 and December 31, 2019, 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 March 31, 2020 and December 31, 2019, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2020 Value Losses Value Losses Value Losses State and municipals: Taxable $ 8,632 $ 328 $ 8,632 $ 328 Tax-exempt 3,149 23 3,149 23 Residential mortgage-backed securities: U.S. government agencies $ 1,133 $ 3 1,133 3 U.S. government-sponsored enterprises 22 1 747 3 769 4 Total $ 11,803 $ 352 $ 1,880 $ 6 $ 13,683 $ 358 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses U.S. government-sponsored enterprises $ 13,695 $ 149 $ 36,070 $ 78 $ 49,765 $ 227 State and municipals: Taxable 23,929 815 23,929 815 Tax-exempt 2,684 19 1,098 1 3,782 20 Residential mortgage-backed securities: U.S. government agencies 992 1 2,362 9 3,354 10 U.S. government-sponsored enterprises 36,939 51 3,751 30 40,690 81 Total $ 78,239 $ 1,035 $ 43,281 $ 118 $ 121,520 $ 1,153 Management, from a credit risk perspective, has taken action to identify and assess its COVID-19 related credit exposures based on asset class. No specific COVID-19 related credit impairment was identified within our investment securities portfolio, including our municipal securities, during the first quarter of 2020. The Company had 24 investment securities, consisting of 5 tax-exempt and 8 taxable state and municipal obligations and 11 mortgage-backed securities that were in unrealized loss positions at March 31, 2020. Of these securities, 10 mortgage-backed securities were in a continuous unrealized loss position for twelve months or more. Management does not consider the unrealized losses on the debt securities, as a result of changes in interest rates, to be OTTI based on historical evidence that indicates the cost of these securities is recoverable within a reasonable period of time in relation to normal cyclical changes in the market rates of interest. Moreover, because there has been no material change in the credit quality of the issuers or other events or circumstances that may cause a significant adverse impact on the fair value of these securities, and management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider the unrealized losses to be OTTI at March 31, 2020. There was no OTTI recognized for the three months ended March 31, 2020 and 2019.

Loans, net and allowance for lo

Loans, net and allowance for loan losses	3 Months Ended
	Mar. 31, 2020
Loans, net and allowance for loan losses
Loans, net and allowance for loan losses	5. Loans, net and allowance for loan losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at March 31, 2020 and December 31, 2019 are summarized as follows. Net deferred loan costs were $869 and $908 at March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 Commercial $ 537,949 $ 522,957 Real estate: Commercial 1,082,124 1,011,423 Residential 307,215 301,378 Consumer 95,867 102,482 Total $ 2,023,155 $ 1,938,240 The changes in the allowance for loan losses account by major classification of loan for the three months ended March 31, 2020 and 2019 are summarized as follows: Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2020 $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (650) (54) (94) (798) Recoveries 267 10 30 307 Provisions 1,464 1,511 442 83 3,500 Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Real estate March 31, 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 (77) (6) (159) (132) (374) Recoveries 8 4 38 50 Provisions 508 344 143 55 1,050 Ending balance $ 5,955 $ 11,074 $ 3,880 $ 1,196 $ 22,105 The Company's allowance for loan losses increased $3.0 million or 13.3% in the first quarter of 2020, due largely to the adjustment of qualitative factors in our allowance for loan losses methodology, which reflect current economic decline and expectation of increased credit losses due to COVID-19's adverse impact on economic and business operating conditions. The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2020 and December 31, 2019 is summarized as follows: Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Ending balance: individually evaluated for impairment 764 270 192 1,226 Ending balance: collectively evaluated for impairment $ 7,205 $ 12,737 $ 3,432 $ 1,086 $ 24,460 Loans receivable: Ending balance $ 537,949 $ 1,082,124 $ 307,215 $ 95,867 $ 2,023,155 Ending balance: individually evaluated for impairment 5,662 3,526 1,835 201 11,224 Ending balance: collectively evaluated for impairment $ 532,287 $ 1,078,598 $ 305,380 $ 95,666 $ 2,011,931 Real estate December 31, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Ending balance: individually evaluated for impairment 363 279 135 777 Ending balance: collectively evaluated for impairment $ 6,525 $ 11,217 $ 3,091 $ 1,067 $ 21,900 Loans receivable: Ending balance $ 522,957 $ 1,011,423 $ 301,378 $ 102,482 $ 1,938,240 Ending balance: individually evaluated for impairment 4,658 3,048 2,153 261 10,120 Ending balance: collectively evaluated for impairment $ 518,299 $ 1,008,375 $ 299,225 $ 102,221 $ 1,928,120 The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: · Pass- A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. · Special Mention- A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. · Substandard- A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. · Doubtful – A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. · Loss- A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The following tables present the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at March 31, 2020 and December 31, 2019: Special March 31, 2020 Pass Mention Substandard Doubtful Total Commercial $ 528,747 $ 3,776 $ 5,426 $ $ 537,949 Real estate: Commercial 1,067,426 5,156 9,542 1,082,124 Residential 304,238 2,977 307,215 Consumer 95,607 260 95,867 Total $ 1,996,018 $ 8,932 $ 18,205 $ $ 2,023,155 Special December 31, 2019 Pass Mention Substandard Doubtful Total Commercial $ 513,994 $ 3,837 $ 5,126 $ $ 522,957 Real estate: Commercial 993,645 2,508 15,270 1,011,423 Residential 298,449 597 2,332 301,378 Consumer 102,145 337 102,482 Total $ 1,908,233 $ 6,942 $ 23,065 $ $ 1,938,240 The increase in special mention loans from December 31, 2019 to March 31, 2020 is primarily associated with the reclassification of two larger commercial real estate credits. The largest relationship totaled $3.8 million and was downgraded to special mention due to the loss of major tenants while the other relationship totaling $1.1 million was upgraded from special mention due to stabilized rental income and improved cash flows. The decrease to substandard loans resulted from the payoff of a $5.1 million commercial real estate construction loan that had experienced significant construction delays. Information concerning nonaccrual loans by major loan classification at March 31, 2020 and December 31, 2019 is summarized as follows: March 31, 2020 December 31, 2019 Commercial $ 4,373 $ 3,336 Real estate: Commercial 3,258 2,765 Residential 843 1,148 Consumer 201 261 Total $ 8,675 $ 7,510 The major classifications of loans by past due status are summarized as follows: Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and March 31, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 196 11 $ 4,373 $ 4,580 $ 533,369 $ 537,949 Real estate: Commercial 2,861 $ 187 3,258 6,306 1,075,818 1,082,124 Residential 3,924 256 1,266 5,446 301,769 307,215 $ 423 Consumer 520 147 201 868 94,999 95,867 Total $ 7,501 $ 601 $ 9,098 $ 17,200 $ 2,005,955 $ 2,023,155 $ 423 The increase in the total past due loans was due to an increase in nonaccrual loans which are included in the greater than 90 day category, coupled with an increase in 30-59 days past due as borrowers began experiencing the initial impact of COVID-19. Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2019 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 75 $ $ 3,036 $ 3,111 $ 519,846 $ 522,957 Real estate: Commercial 926 175 2,765 3,866 1,007,557 1,011,423 $ Residential 2,164 1,227 1,526 4,917 296,461 301,378 378 Consumer 523 123 261 907 101,575 102,482 Total $ 3,688 $ 1,525 $ 7,588 $ 12,801 $ 1,925,439 $ 1,938,240 $ 378 The following tables summarize information concerning impaired loans as of and for the three months ended March 31, 2020 and March 31, 2019, and as of and for the year ended December 31, 2019 by major loan classification: For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,706 $ 4,249 $ 3,672 $ 16 Real estate: Commercial 2,263 2,574 2,091 5 Residential 1,129 1,369 1,424 5 Consumer 201 219 231 Total 7,299 8,411 7,418 26 With an allowance recorded: Commercial 1,956 1,974 764 1,488 6 Real estate: Commercial 1,263 1,924 270 1,197 Residential 706 735 192 571 4 Consumer Total 3,925 4,633 1,226 3,256 10 Total impaired loans Commercial 5,662 6,223 764 5,160 22 Real estate: Commercial 3,526 4,498 270 3,288 5 Residential 1,835 2,104 192 1,995 9 Consumer 201 219 231 Total $ 11,224 $ 13,044 $ 1,226 $ 10,674 $ 36 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,638 $ 4,175 $ 3,907 $ 63 Real estate: Commercial 1,918 2,205 2,385 38 Residential 1,718 2,060 1,362 25 Consumer 261 274 233 Total 7,535 8,714 7,887 126 With an allowance recorded: Commercial 1,020 1,038 363 1,012 32 Real estate: Commercial 1,130 1,811 279 1,050 10 Residential 435 450 135 1,408 29 Consumer 20 Total 2,585 3,299 777 3,490 71 Total impaired loans Commercial 4,658 5,213 363 4,919 95 Real estate: Commercial 3,048 4,016 279 3,435 48 Residential 2,153 2,510 135 2,770 54 Consumer 261 274 253 Total $ 10,120 $ 12,013 $ 777 $ 11,377 $ 197 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 6,072 $ 6,407 $ 3,817 $ Real estate: Commercial 2,098 2,184 2,034 Residential 860 1,287 1,415 Consumer 238 245 195 Total 9,268 10,123 7,461 37 With an allowance recorded: Commercial 940 990 $ 138 808 7 Real estate: Commercial 1,437 1,563 389 1,295 5 Residential 2,035 2,078 461 2,068 11 Consumer 30 Total 4,412 4,631 988 4,201 23 Total impaired loans Commercial 7,012 7,397 138 4,625 24 Real estate: Commercial 3,535 3,747 389 3,329 18 Residential 2,895 3,365 461 3,483 18 Consumer 238 245 — 225 Total $ 13,680 $ 14,754 $ 988 $ 11,662 $ 60 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 $2,140 at March 31, 2020, $2,193 at December 31, 2019 and $3,096 at March 31, 2019. 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 during the three months ended March 31, 2020. For the three months ended March 31 2019, there was one commercial real estate loan modified as troubled debt restructuring in the amount of $340. During the three months ended March 31, 2020, there was one payment default on a residential real estate loan in the amount of $52 and there were no payment defaults on troubled debt restructings. During the three months ended March 31, 2019, there were no payment defaults on restructured loans.

Other assets

Other assets	3 Months Ended
	Mar. 31, 2020
Other assets
Other assets	6. Other assets: The components of other assets at March 31, 2020, and December 31, 2019 are summarized as follows: March 31, 2020 December 31, 2019 Other real estate owned $ 903 $ 450 Investment in low income housing partnership 6,782 6,901 Mortgage servicing rights 741 738 Bank owned life insurance 35,224 35,041 Restricted equity securities (FHLB and other) 10,684 10,201 Net deferred tax asset 1,598 3,362 Interest rate floor 1,966 944 Interest rate swaps 14,679 4,728 Other assets 6,743 6,855 Total $ 79,320 $ 69,220

Fair value estimates

Fair value estimates	3 Months Ended
	Mar. 31, 2020
Fair value of financial instruments
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 March 31, 2020 and December 31, 2019 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 and options: The Company’s interest rate swaps and options 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 interest rate, forward rates, rate volatility, and volatility surface . Derivative contracts create exposure to interest rate movements as well as risks from the potential of non-performance of the counterparty. Assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 22,121 $ 22,121 $ U.S. government-sponsored enterprises 84,590 $ 84,590 State and municipals: Taxable 32,560 32,560 Tax-exempt 39,980 39,980 Mortgage-backed securities: U.S. government agencies 7,300 7,300 U.S. government-sponsored enterprises 116,333 116,333 Common equity securities 299 299 Loan held for sale 270 270 Interest rate floor-other assets 1,966 1,966 Interest rate swap-other assets 14,679 14,679 Interest rate swap-other liabilities (14,762) (14,762) Total $ 305,336 $ 22,420 $ 282,916 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 24,128 $ 24,128 $ U.S. government-sponsored enterprises 87,110 $ 87,110 State and municipals: Taxable 34,898 34,898 Tax-exempt 60,163 60,163 Mortgage-backed securities: U.S. government agencies 8,470 8,470 U.S. government-sponsored enterprises 115,709 115,709 Common equity securities 423 423 Loan held for sale 986 986 Interest rate floor-other assets 944 944 Interest rate swap-other assets 4,728 4,728 Interest rate swap-other liabilities (4,680) (4,680) Total $ 332,879 $ 24,551 $ 308,328 $ Assets and liabilities measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,699 $ 2,699 Other real estate owned $ 550 $ 550 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,808 $ 1,808 Other real estate owned $ 283 $ 283 Fair values of impaired loans are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Range March 31, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,699 Appraisal of collateral Appraisal adjustments 11.7% to 97.0% (62.5)% Liquidation expenses 3.0% to 6.0% (5.7)% Other real estate owned $ 550 Appraisal of collateral Appraisal adjustments 18.4% to 63.5% (40.3)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2019 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,808 Appraisal of collateral Appraisal adjustments 8.6% to 97.0% (54.4)% Liquidation expenses 3.0% to 6.0% (5.2)% Other real estate owned $ 283 Appraisal of collateral Appraisal adjustments 20.0% to 63.6% (43.7)% Liquidation expenses 3.0% to 6.0% (5.0)% Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The carrying and fair values of the Company’s financial instruments at March 31, 2020 and December 31, 2019 and their placement within the fair value hierarchy are as follows: Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs March 31, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 35,327 $ 35,327 $ 35,327 Investment securities: Available-for-sale 302,884 302,884 22,121 $ 280,763 Common equity securities 299 299 299 Held-to-maturity 7,520 7,687 7,687 Loans held for sale 270 270 270 Net loans 1,997,469 1,963,402 $ 1,963,402 Accrued interest receivable 7,283 7,283 7,283 Mortgage servicing rights 741 1,299 1,299 Restricted equity securities (FHLB and other) 10,684 10,684 10,684 Interest rate floor 1,966 1,966 1,966 Interest rate swaps 14,679 14,679 14,679 Total $ 2,379,122 $ 2,345,780 Financial liabilities: Deposits $ 2,009,995 $ 2,014,166 $ 2,014,166 Long-term debt 32,250 32,864 32,864 Accrued interest payable 1,336 1,336 1,336 Interest rate swaps 14,762 14,762 14,762 Total $ 2,058,343 $ 2,063,128 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2019 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 31,153 $ 31,153 $ 31,153 Investment securities: Available-for-sale 330,478 330,478 24,128 $ 306,350 Common equity securities 423 423 423 Held-to-maturity 7,656 7,889 7,889 Loans held for sale 986 986 986 Net loans 1,915,563 1,881,658 $ 1,881,658 Accrued interest receivable 6,981 6,981 6,981 Mortgage servicing rights 738 1,444 1,444 Restricted equity securities (FHLB and other) 10,201 10,201 10,201 Interest rate floor 944 944 944 Interest rate swaps 4,728 4,728 4,728 Total $ 2,309,851 $ 2,276,885 Financial liabilities: Deposits $ 1,971,489 $ 1,972,084 $ 1,972,084 Short-term borrowings Long-term debt 32,733 33,075 33,075 Accrued interest payable 1,277 1,277 1,277 Interest rate swaps 4,680 4,680 4,680 Total $ 2,010,179 $ 2,011,116

Employee benefit plans

Employee benefit plans	3 Months Ended
	Mar. 31, 2020
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 months ended March 31, salaries and employee benefits expense includes approximately $306 in 2020 and $340 in 2019 relating to the employee benefit plans. Pension Benefits Three Months Ended March 31, 2020 2019 Components of net periodic pension benefit: Interest cost $ 54 $ 128 Expected return on plan assets (123) (217) Amortization of unrecognized net gain 22 45 Net periodic benefit $ (47) $ (44) 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 March 31, 2020, there were 54,506 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 remained 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. For the three months ended March 31, 2020 and 2019, the Company granted awards of restricted stock and restricted stock units under the 2017 Plan, with an aggregate of 16,854 shares and 17,345 shares underlying such awards, respectively. The non-performance restricted stock grants made in 2020, 2019 and 2018 vest equally over three years from the grant date. The performance-based restricted stock units vest over three fiscal years 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 net compensation costs of $5 for the three months ended March 31, 2020 for awards granted under the 2017 Plan. The Company recognized compensation expense of $83 for the three months ended March 31, 2019 for awards granted under the 2017 Plan. As of March 31, 2020, the Company had $861 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 2.6 years.

Derivatives and hedging activit

Derivatives and hedging activities	3 Months Ended
	Mar. 31, 2020
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 income (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 income (loss) related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate assets. During 2020, 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 March 31, 2020, the Company had 44 interest rate swaps with an aggregate notional amount of $225,376 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 March 31 2020 and December 31, 2019. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of March 31, 2020 As of December 31, 2019 (1) As of March 31, 2020 As of December 31, 2019 (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 $ 1,966 Other Assets $ Total derivatives designated as hedging instruments $ 1,966 $ Derivatives not designated as hedging instruments Interest Rate Swaps $ 225,376 Other Assets $ 14,679 Other Assets $ 4,728 Other Liabilities $ 14,762 Other Liabilities $ 4,680 Total derivatives not designated as hedging instruments $ 14,679 $ 4,728 $ 14,762 $ 4,680 (1) Assets amount does not include accrued interest receivable of $65. (2) Liabilities amount does not include accrued interest payable of $65. (3) Notional amount of interest rate swaps at March 31, 2019 $79,667. Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income (loss) as of March 31, 2020 and March 31, 2019. Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Loss 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 March 31, 2020 Income March 31, 2020 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ (1,072) $ (1,104) $ 36 Interest Income $ 36 $ 52 $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Gain Gain Loss Recognized from Gain 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 March 31, 2019 Income March 31, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 47 $ 295 $ (248) Interest Income $ (15) $ $ (15) * 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 months ended March 31, 2020 and March 31, 2019. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2020 2019 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 $ 36 $ (15) 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 $ 36 $ (15) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component 52 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (15) 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 months ended March 31, 2020 and 2019. Amount of Loss Amount of Loss Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Three Months Ended Three Months Ended Derivatives Not Designated as Hedging Instruments Derivative March 31, 2020 March 31, 2019 Interest Rate Swaps Other non-interest income $ (131) $ (110) Fee Income Other income / (expense) $ 601 $ 391 Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2020 and December 31, 2019. 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 March 31, 2020 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 $ 16,645 $ $ 16,645 $ $ 16,645 Offsetting of Derivative Liabilities as of March 31, 2020 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 $ 14,762 $ $ 14,762 $ $ 14,762 Offsetting of Derivative Assets as of December 31, 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 $ 5,672 $ $ 5,672 $ $ 5,672 Offsetting of Derivative Liabilities as of December 31, 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 $ 4,680 $ $ 4,680 $ $ 4,680 Credit-risk-related Contingent Features The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. The Company has agreements with certain of its derivative counterparties that contain provisions that require the Company’s debt to maintain an investment grade credit rating from each of the major credit rating agencies. If the Company’s credit rating is reduced below investment grade then a termination event shall be deemed to have occurred and the non-affected counterparty shall have the right but not obligation to terminate all affected transactions under the agreement. As of March 31, 2020, 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 $83. As of December 31, 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 $48. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $13,090 against its obligations under these agreements as of March 31, 2020, compared to having posted collateral of $5,120 with counterparties at December 31, 2019. 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.

Deposits

Deposits	3 Months Ended
	Mar. 31, 2020
Deposits.
Deposits	10. Deposits The major components of interest-bearing and noninterest-bearing deposits at March 31, 2020 and December 31, 2019 are summarized as follows: At the period end March 31, 2020 December 31, 2019 Interest-bearing deposits: Money market accounts $ 360,881 $ 365,463 Now accounts 408,994 402,999 Savings accounts 379,252 370,270 Time deposits less than $250 281,552 231,450 Time deposits $250 or more 112,001 138,069 Total interest-bearing deposits 1,542,680 1,508,251 Noninterest-bearing deposits 467,315 463,238 Total deposits $ 2,009,995 $ 1,971,489 For the three months ended March 31, 2020, total deposits increased $38,506 or 7.9% annualized, to $2,009,995 from $1,971,489 at December 31, 2019. The growth in deposits occurred primarily in time deposits less than $250 thousand due to the addition of $54,108 to brokered deposits which more than offset the seasonal runoff of retail and public fund deposits.

Borrowings

Borrowings	3 Months Ended
	Mar. 31, 2020
Short-term borrowings
Borrowings	11. Borrowings Short-term borrowings consists of FHLB advances representing overnight borrowings or with stated original terms of less than twelve months. The table below outlines short-term borrowings at March 31, 2020 and December 31, 2019: For the three months ended March 31, 2020 Weighted Ending Maximum Weighted Average Balance Average Month-End Average Rate at at March 31, 2020 Balance Balance Rate March 31,2020 FHLB advances $ 164,150 $ 142,121 $ 164,150 1.62 % 0.62 % At and for the year ended December 31, 2019 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 152,150 $ 62,941 $ 152,150 2.61 % 1.84 % 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 March 31, 2020, the maximum borrowing capacity was $775,458 of which $196,400 was outstanding in borrowings and $155,800 was used to issue standby letters of credit to collateralize public fund deposits. At December 31, 2019, the maximum borrowing capacity was $723,608 of which $184,883 was outstanding in borrowings and $185,750 was used to issue standby letters of credit to collateralize public fund depsoits. Short-term borrowings were used to fund a portion of our loan growth during the first three months of 2020 as deposit growth lagged our loan growth. 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 March 31, 2020 and December 31, 2019 are as follows: Interest Rate Due Fixed March 31, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 $ 5,000 June 2020 2.22 6,000 6,000 December 2020 1.84 5,000 5,000 June 2021 1.99 10,000 10,000 March 2023 4.69 6,250 6,733 $ 32,250 $ 32,733 Maturities of long-term debt, by contractual maturity, for the remainder of 2020 and subsequent years are as follows: 2020 $ 17,480 2021 12,058 2022 2,157 2023 555 $ 32,250 None of the advances from the FHLB are convertible.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2020
Income taxes
Income taxes	12. Income taxes The effective tax rate of the Company was 11.4% for the three months ended March 31, 2020 compared to 10.6% for the three months ended March 31, 2019. The three months ended March 31, 2020 includes before tax investment tax credits of $273 compared to before tax investment tax credits and other credits of $388 for the same period last year.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2020
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-nine full-service community banking offices located within the Bucks, 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 three months ended and as of March 31, 2020, 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, 2019. Significant events: COVID-19 In December 2019, a novel strain of coronavirus (COVID-19) was reported to have surfaced in China, and has since spread to the United States and throughout the world. On March 11, 2020, the World Health Organization declared COVID-19, a global pandemic. In the United States, the rapid spread of the COVID-19 virus invoked various federal and state authorities to make emergency declarations and issue executive orders to limit the spread of the disease. Measures included restrictions on travel, limitations on public gatherings, implementation of social distancing protocols, school closings, orders to shelter in place and mandates to close all non-essential businesses to the public. Concerns about the spread of the disease and its anticipated negative impact on economic activity, severely disrupted domestic financial markets prompting the Federal Reserve System’s Federal Open Market Committee (“FOMC”) to aggressively cut the target federal funds rate to a range of 0% to 0.25%, including a 50 basis point reduction in the target federal funds rate on March 3, 2020 and an additional 100 basis point reduction on March 15, 2020. In addition, the Federal Reserve rolled out various market support programs to ease the stress on financial markets. As the COVID-19 events unfolded throughout the first quarter of 2020, the Company implemented its pandemic plan and executed various strategies and protocols intended to protect its employees, maintain services for customers, assure the functional continuity of the Company’s operating systems, controls and processes, and mitigate financial risks posed by changing market conditions. The Company imposed business travel restrictions, implemented quarantine and work from home protocols and physically separated, to the extent possible, the critical operations site workforce that are unable to work remotely. To limit the risk of virus spread, the Company implemented drive-thru only and by appointment operating protocols for its bank branch network. The Company also maintained active communications with its primary regulatory agencies and critical vendors in an effort to assure that all mission-critical activities and functions would be performed in line with regulatory expectations and the Company’s service standards. The impact of the COVID-19 pandemic is fluid and continues to evolve, adversely affecting many of the Bank’s clients. The COVID-19 pandemic and its associated impacts on trade (including supply chains), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets, and has had an adverse effect on our business, financial condition and results of operations. The ultimate extent of the impact of the COVID-19 pandemic on our business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets and our customers, employees and vendors. Our business, financial condition and results of operations generally rely upon the ability of our borrowers to repay their loans, the value of collateral underlying our secured loans, and demand for loans and other products and services we offer, which are highly dependent on the business environment in our primary markets where we operate and in the United States as a whole. The full impact of COVID-19 is unknown and rapidly evolving. It has caused substantial disruption in U.S. economies, markets, and employment. The outbreak may have a significant adverse impact on certain industries the Company serves. During March, the Company reviewed its commercial loan and commercial real estate portfolios and determined approximately $1.2 billion or 73% is categorized as non-life sustaining and subject to shutdown. Based on management’s application of its allowance for loan losses methodology and changes to the economic qualitative factors relating to the adverse impact of the COVID-19 crisis on economic conditions and the increased inherent risk in the loan portfolio, first quarter 2020 results included $3.5 million in provision for loan and lease losses. Because of the significant uncertainties related to the ultimate duration of the COVID-19 pandemic and its potential effects on clients and prospects, and on the national and local economy as a whole, there can be no assurances as to how the crisis may ultimately affect the Company’s loan portfolio. With respect to the Company’s lending activities, the Company implemented a customer payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19 related challenges. On March 22, 2020, the federal bank regulatory agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.” This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that, in consultation with the FASB staff, the federal bank regulatory agencies concluded that short-term modifications (e.g. six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not troubled debt restructurings (“TDRs”). Section 4013 of the CARES Act also addresses COVID-19 related modifications and specifies that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. Through May 6, 2020, the Company granted payment deferral requests for up to four months to 390 business loans and for up to six months on 451 consumer loans, representing $313.6 million of the Company’s loan balances. Loans in deferment status will continue to accrue interest during the deferment period unless otherwise classified as nonperforming. The Company has also participated as a lender in the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), Paycheck Protection Program, a $349 billion specialized low-interest loan program funded by the U.S. Treasury Department and administered by the U.S. Small Business Administration (“SBA”). The Paycheck Protection Program (“PPP”) provides borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related business operating costs. Between April 3 and April 17, 2020, the Company processed 836 applications providing over $177.9 million in loans through Phase I of the SBA PPP with an average loan amount of $213 thousand. Through May 6, 2020, the Company processed another 455 applications providing over $24.0 million in loans through Phase II of the PPP with an average loan amount of $53 thousand furthering Peoples’ commitment to support small businesses. Funding these loans will generate approximately $6.6 million of SBA processing fees. The Company intends to utilize the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) to replace liquidity used to fund PPP loans. The Company also has goodwill with a net carrying value of $63.4 million at March 31, 2020 and December 31, 2019. The Company completes a goodwill impairment analysis at least annually, or more often if events and circumstances indicate that there may be impairment. In connection with the emergence of COVID-19 as a global pandemic and the decline in our stock price during the 2020 first quarter, management performed a qualitative assessment to determine whether goodwill was impaired. Management assessed factors that could potentially indicate impairment, including: regional and national economic conditions, banking industry conditions and trends, historical financial performance, and other banking specific factors. After assessing the factors in totality, management determined that it was more likely than not that the fair value of the Company is higher than its book value as of March 31, 2020, and, therefore, goodwill is not considered impaired. In the event of a sustained decline in share price or further deterioration in the macroeconomic outlook, continued assessments of the Company's goodwill balance will likely be required in future periods with no assurance that the future impairment assessments or tests will not result in a charge to earnings.
Recent accounting standards	Recent accounting standards: 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 November 2019, the FASB voted to defer the adoption date for smaller reporting companies from 2020 to 2023. The Company qualifies as a smaller reporting company and therefore guidance is effective for the Company in 2023. 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 January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The Company adopted this guidance effective January 1, 2020. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” which 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. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance on January 1, 2020 did not have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)”, which provides changes to the disclosure requirements for defined benefit plans. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are a result of the disclosure framework project that focuses on improvements to the effectiveness of disclosures in the notes to financial statements. The amendments remove and add certain disclosure requirements. The disclosure requirements being removed relating to public companies are (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, (2) the amount and timing of plan assets expected to be returned to the employer, (3) the 2001 disclosure requirement relating to Japanese Welfare Pension Insurance Law, (4) related party disclosures about the amount of future annual benefits covered by insurance, and (5) the effects of a one-percentage-point change in assumed health care cost trends on the benefit cost and obligation. The disclosure requirements being added relating to public companies are (1) the weighted-average interest crediting rates for cash balance plans, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. ASU 2018-14 is effective for the Company on January 1, 2021 and early adoption is permitted. The amendments should be applied retrospectively however, the Company does not expect the guidance to have a material impact on its disclosures to the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which aims to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2019-12 on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” , which provides optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. The Company is currently evaluating the impact that adopting this new accounting standard will have on the consolidated financial statements.

Other Comprehensive Income (L_2

Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2020
Other Comprehensive Income (Loss)
Schedule of components of accumulated other comprehensive loss	March 31, 2020 December 31, 2019 Net unrealized gain on investment securities available-for-sale $ 9,197 $ 1,835 Income tax 1,932 385 Net of income taxes 7,265 1,450 Benefit plan adjustments (6,579) (6,579) Income tax (1,382) (1,382) Net of income taxes (5,197) (5,197) Derivative adjustments 1,723 687 Income tax 363 144 Net of income taxes 1,360 543 Accumulated other comprehensive income (loss) $ 3,428 $ (3,205)

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings per share
Schedule of earnings per share	2020 2019 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net income $ 5,281 $ 5,281 $ 6,412 $ 6,412 Average common shares outstanding 7,379,438 7,406,291 7,399,054 7,408,536 Earnings per share $ 0.72 $ 0.71 $ 0.87 $ 0.87

Investment securities (Tables)

Investment securities (Tables)	3 Months Ended
	Mar. 31, 2020
Schedule of amortized cost and fair value of investment securities aggregated by investment category	Gross Gross Amortized Unrealized Unrealized Fair March 31, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 21,471 $ 650 $ 22,121 U.S. government-sponsored enterprises 83,028 1,562 84,590 State and municipals: Taxable 32,116 772 $ 328 32,560 Tax-exempt 38,392 1,596 8 39,980 Residential mortgage-backed securities: U.S. government agencies 7,125 178 3 7,300 U.S. government-sponsored enterprises 98,880 4,143 3 103,020 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,675 638 13,313 Total $ 293,687 $ 9,539 $ 342 $ 302,884 Held-to-maturity: Tax-exempt state and municipals $ 6,851 $ 153 $ 15 $ 6,989 Residential mortgage-backed securities: U.S. government agencies 28 28 U.S. government-sponsored enterprises 641 30 1 670 Total $ 7,520 $ 183 $ 16 $ 7,687 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 23,966 162 $ $ 24,128 U.S. government-sponsored enterprises 87,156 $ 181 227 87,110 State and municipals: Taxable 35,418 295 815 34,898 Tax-exempt 59,127 1,056 20 60,163 Residential mortgage-backed securities: U.S. government agencies 8,368 112 10 8,470 U.S. government-sponsored enterprises 101,914 1,011 77 102,848 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,694 171 4 12,861 Total $ 328,643 $ 2,988 $ 1,153 $ 330,478 Held-to-maturity: Tax-exempt state and municipals $ 6,852 $ 208 $ $ 7,060 Residential mortgage-backed securities: U.S. government agencies 31 31 U.S. government-sponsored enterprises 773 25 798 Total $ 7,656 $ 233 $ $ 7,889
Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2020 Value Losses Value Losses Value Losses State and municipals: Taxable $ 8,632 $ 328 $ 8,632 $ 328 Tax-exempt 3,149 23 3,149 23 Residential mortgage-backed securities: U.S. government agencies $ 1,133 $ 3 1,133 3 U.S. government-sponsored enterprises 22 1 747 3 769 4 Total $ 11,803 $ 352 $ 1,880 $ 6 $ 13,683 $ 358 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses U.S. government-sponsored enterprises $ 13,695 $ 149 $ 36,070 $ 78 $ 49,765 $ 227 State and municipals: Taxable 23,929 815 23,929 815 Tax-exempt 2,684 19 1,098 1 3,782 20 Residential mortgage-backed securities: U.S. government agencies 992 1 2,362 9 3,354 10 U.S. government-sponsored enterprises 36,939 51 3,751 30 40,690 81 Total $ 78,239 $ 1,035 $ 43,281 $ 118 $ 121,520 $ 1,153
Summary of unrealized and realized gains and losses	The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31 2020 (in thousands): For the Three Months Ended March 31, 2020 2019 Net (loss) gains recognized during the period on equity securities $ (123) $ 1 Less: Net gains (loss) recognized during the period on equity securities sold during the period Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (123) $ 1
Available-for-Sale Securities.
Schedule of maturity distribution of fair value	Fair March 31, 2020 Value Within one year $ 37,800 After one but within five years 79,696 After five but within ten years 18,995 After ten years 39,313 175,804 Mortgage-backed and other amortizing securities 127,080 Total $ 302,884
Held-to-maturity Securities.
Schedule of maturity distribution of fair value	Amortized Fair March 31, 2020 Cost Value After ten years $ 6,851 $ 6,989 6,851 6,989 Mortgage-backed securities 669 698 Total $ 7,520 $ 7,687

Loans, net and allowance for _2

Loans, net and allowance for loan losses (Tables)	3 Months Ended
	Mar. 31, 2020
Loans, net and allowance for loan losses
Schedule of major classifications of loans outstanding	March 31, 2020 December 31, 2019 Commercial $ 537,949 $ 522,957 Real estate: Commercial 1,082,124 1,011,423 Residential 307,215 301,378 Consumer 95,867 102,482 Total $ 2,023,155 $ 1,938,240
Schedule of changes in allowance for loan losses account by major classification of loans	The changes in the allowance for loan losses account by major classification of loan for the three months ended March 31, 2020 and 2019 are summarized as follows: Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2020 $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (650) (54) (94) (798) Recoveries 267 10 30 307 Provisions 1,464 1,511 442 83 3,500 Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Real estate March 31, 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 (77) (6) (159) (132) (374) Recoveries 8 4 38 50 Provisions 508 344 143 55 1,050 Ending balance $ 5,955 $ 11,074 $ 3,880 $ 1,196 $ 22,105 The Company's allowance for loan losses increased $3.0 million or 13.3% in the first quarter of 2020, due largely to the adjustment of qualitative factors in our allowance for loan losses methodology, which reflect current economic decline and expectation of increased credit losses due to COVID-19's adverse impact on economic and business operating conditions. The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2020 and December 31, 2019 is summarized as follows: Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Ending balance: individually evaluated for impairment 764 270 192 1,226 Ending balance: collectively evaluated for impairment $ 7,205 $ 12,737 $ 3,432 $ 1,086 $ 24,460 Loans receivable: Ending balance $ 537,949 $ 1,082,124 $ 307,215 $ 95,867 $ 2,023,155 Ending balance: individually evaluated for impairment 5,662 3,526 1,835 201 11,224 Ending balance: collectively evaluated for impairment $ 532,287 $ 1,078,598 $ 305,380 $ 95,666 $ 2,011,931 Real estate December 31, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Ending balance: individually evaluated for impairment 363 279 135 777 Ending balance: collectively evaluated for impairment $ 6,525 $ 11,217 $ 3,091 $ 1,067 $ 21,900 Loans receivable: Ending balance $ 522,957 $ 1,011,423 $ 301,378 $ 102,482 $ 1,938,240 Ending balance: individually evaluated for impairment 4,658 3,048 2,153 261 10,120 Ending balance: collectively evaluated for impairment $ 518,299 $ 1,008,375 $ 299,225 $ 102,221 $ 1,928,120
Schedule of major classification of loans portfolio summarized by credit quality	Special March 31, 2020 Pass Mention Substandard Doubtful Total Commercial $ 528,747 $ 3,776 $ 5,426 $ $ 537,949 Real estate: Commercial 1,067,426 5,156 9,542 1,082,124 Residential 304,238 2,977 307,215 Consumer 95,607 260 95,867 Total $ 1,996,018 $ 8,932 $ 18,205 $ $ 2,023,155 Special December 31, 2019 Pass Mention Substandard Doubtful Total Commercial $ 513,994 $ 3,837 $ 5,126 $ $ 522,957 Real estate: Commercial 993,645 2,508 15,270 1,011,423 Residential 298,449 597 2,332 301,378 Consumer 102,145 337 102,482 Total $ 1,908,233 $ 6,942 $ 23,065 $ $ 1,938,240
Schedule of information concerning nonaccrual loans by major loan classification	March 31, 2020 December 31, 2019 Commercial $ 4,373 $ 3,336 Real estate: Commercial 3,258 2,765 Residential 843 1,148 Consumer 201 261 Total $ 8,675 $ 7,510
Schedule of major classifications of loans by past due status	Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and March 31, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 196 11 $ 4,373 $ 4,580 $ 533,369 $ 537,949 Real estate: Commercial 2,861 $ 187 3,258 6,306 1,075,818 1,082,124 Residential 3,924 256 1,266 5,446 301,769 307,215 $ 423 Consumer 520 147 201 868 94,999 95,867 Total $ 7,501 $ 601 $ 9,098 $ 17,200 $ 2,005,955 $ 2,023,155 $ 423 The increase in the total past due loans was due to an increase in nonaccrual loans which are included in the greater than 90 day category, coupled with an increase in 30-59 days past due as borrowers began experiencing the initial impact of COVID-19. Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2019 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 75 $ $ 3,036 $ 3,111 $ 519,846 $ 522,957 Real estate: Commercial 926 175 2,765 3,866 1,007,557 1,011,423 $ Residential 2,164 1,227 1,526 4,917 296,461 301,378 378 Consumer 523 123 261 907 101,575 102,482 Total $ 3,688 $ 1,525 $ 7,588 $ 12,801 $ 1,925,439 $ 1,938,240 $ 378
Summarized information concerning impaired loans	For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,706 $ 4,249 $ 3,672 $ 16 Real estate: Commercial 2,263 2,574 2,091 5 Residential 1,129 1,369 1,424 5 Consumer 201 219 231 Total 7,299 8,411 7,418 26 With an allowance recorded: Commercial 1,956 1,974 764 1,488 6 Real estate: Commercial 1,263 1,924 270 1,197 Residential 706 735 192 571 4 Consumer Total 3,925 4,633 1,226 3,256 10 Total impaired loans Commercial 5,662 6,223 764 5,160 22 Real estate: Commercial 3,526 4,498 270 3,288 5 Residential 1,835 2,104 192 1,995 9 Consumer 201 219 231 Total $ 11,224 $ 13,044 $ 1,226 $ 10,674 $ 36 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,638 $ 4,175 $ 3,907 $ 63 Real estate: Commercial 1,918 2,205 2,385 38 Residential 1,718 2,060 1,362 25 Consumer 261 274 233 Total 7,535 8,714 7,887 126 With an allowance recorded: Commercial 1,020 1,038 363 1,012 32 Real estate: Commercial 1,130 1,811 279 1,050 10 Residential 435 450 135 1,408 29 Consumer 20 Total 2,585 3,299 777 3,490 71 Total impaired loans Commercial 4,658 5,213 363 4,919 95 Real estate: Commercial 3,048 4,016 279 3,435 48 Residential 2,153 2,510 135 2,770 54 Consumer 261 274 253 Total $ 10,120 $ 12,013 $ 777 $ 11,377 $ 197 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 6,072 $ 6,407 $ 3,817 $ Real estate: Commercial 2,098 2,184 2,034 Residential 860 1,287 1,415 Consumer 238 245 195 Total 9,268 10,123 7,461 37 With an allowance recorded: Commercial 940 990 $ 138 808 7 Real estate: Commercial 1,437 1,563 389 1,295 5 Residential 2,035 2,078 461 2,068 11 Consumer 30 Total 4,412 4,631 988 4,201 23 Total impaired loans Commercial 7,012 7,397 138 4,625 24 Real estate: Commercial 3,535 3,747 389 3,329 18 Residential 2,895 3,365 461 3,483 18 Consumer 238 245 — 225 Total $ 13,680 $ 14,754 $ 988 $ 11,662 $ 60

Other assets (Tables)

Other assets (Tables)	3 Months Ended
	Mar. 31, 2020
Other assets
Schedule of components of other assets	March 31, 2020 December 31, 2019 Other real estate owned $ 903 $ 450 Investment in low income housing partnership 6,782 6,901 Mortgage servicing rights 741 738 Bank owned life insurance 35,224 35,041 Restricted equity securities (FHLB and other) 10,684 10,201 Net deferred tax asset 1,598 3,362 Interest rate floor 1,966 944 Interest rate swaps 14,679 4,728 Other assets 6,743 6,855 Total $ 79,320 $ 69,220

Fair value estimates (Tables)

Fair value estimates (Tables)	3 Months Ended
	Mar. 31, 2020
Fair value of financial instruments
Schedule of assets and liabilities measured at fair value on a recurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 22,121 $ 22,121 $ U.S. government-sponsored enterprises 84,590 $ 84,590 State and municipals: Taxable 32,560 32,560 Tax-exempt 39,980 39,980 Mortgage-backed securities: U.S. government agencies 7,300 7,300 U.S. government-sponsored enterprises 116,333 116,333 Common equity securities 299 299 Loan held for sale 270 270 Interest rate floor-other assets 1,966 1,966 Interest rate swap-other assets 14,679 14,679 Interest rate swap-other liabilities (14,762) (14,762) Total $ 305,336 $ 22,420 $ 282,916 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 24,128 $ 24,128 $ U.S. government-sponsored enterprises 87,110 $ 87,110 State and municipals: Taxable 34,898 34,898 Tax-exempt 60,163 60,163 Mortgage-backed securities: U.S. government agencies 8,470 8,470 U.S. government-sponsored enterprises 115,709 115,709 Common equity securities 423 423 Loan held for sale 986 986 Interest rate floor-other assets 944 944 Interest rate swap-other assets 4,728 4,728 Interest rate swap-other liabilities (4,680) (4,680) Total $ 332,879 $ 24,551 $ 308,328 $
Schedule of assets and liabilities measured at fair value on a nonrecurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,699 $ 2,699 Other real estate owned $ 550 $ 550 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,808 $ 1,808 Other real estate owned $ 283 $ 283
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis	Quantitative Information about Level 3 Fair Value Measurements Fair Value Range March 31, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,699 Appraisal of collateral Appraisal adjustments 11.7% to 97.0% (62.5)% Liquidation expenses 3.0% to 6.0% (5.7)% Other real estate owned $ 550 Appraisal of collateral Appraisal adjustments 18.4% to 63.5% (40.3)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2019 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,808 Appraisal of collateral Appraisal adjustments 8.6% to 97.0% (54.4)% Liquidation expenses 3.0% to 6.0% (5.2)% Other real estate owned $ 283 Appraisal of collateral Appraisal adjustments 20.0% to 63.6% (43.7)% Liquidation expenses 3.0% to 6.0% (5.0)%
Schedule of carrying and fair values of financial instruments	Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs March 31, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 35,327 $ 35,327 $ 35,327 Investment securities: Available-for-sale 302,884 302,884 22,121 $ 280,763 Common equity securities 299 299 299 Held-to-maturity 7,520 7,687 7,687 Loans held for sale 270 270 270 Net loans 1,997,469 1,963,402 $ 1,963,402 Accrued interest receivable 7,283 7,283 7,283 Mortgage servicing rights 741 1,299 1,299 Restricted equity securities (FHLB and other) 10,684 10,684 10,684 Interest rate floor 1,966 1,966 1,966 Interest rate swaps 14,679 14,679 14,679 Total $ 2,379,122 $ 2,345,780 Financial liabilities: Deposits $ 2,009,995 $ 2,014,166 $ 2,014,166 Long-term debt 32,250 32,864 32,864 Accrued interest payable 1,336 1,336 1,336 Interest rate swaps 14,762 14,762 14,762 Total $ 2,058,343 $ 2,063,128 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2019 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 31,153 $ 31,153 $ 31,153 Investment securities: Available-for-sale 330,478 330,478 24,128 $ 306,350 Common equity securities 423 423 423 Held-to-maturity 7,656 7,889 7,889 Loans held for sale 986 986 986 Net loans 1,915,563 1,881,658 $ 1,881,658 Accrued interest receivable 6,981 6,981 6,981 Mortgage servicing rights 738 1,444 1,444 Restricted equity securities (FHLB and other) 10,201 10,201 10,201 Interest rate floor 944 944 944 Interest rate swaps 4,728 4,728 4,728 Total $ 2,309,851 $ 2,276,885 Financial liabilities: Deposits $ 1,971,489 $ 1,972,084 $ 1,972,084 Short-term borrowings Long-term debt 32,733 33,075 33,075 Accrued interest payable 1,277 1,277 1,277 Interest rate swaps 4,680 4,680 4,680 Total $ 2,010,179 $ 2,011,116

Employee benefit plans (Tables)

Employee benefit plans (Tables)	3 Months Ended
	Mar. 31, 2020
Employee benefit plans
Schedule of components of net periodic benefit cost	Pension Benefits Three Months Ended March 31, 2020 2019 Components of net periodic pension benefit: Interest cost $ 54 $ 128 Expected return on plan assets (123) (217) Amortization of unrecognized net gain 22 45 Net periodic benefit $ (47) $ (44)

Derivatives and hedging activ_2

Derivatives and hedging activities (Tables)	3 Months Ended
	Mar. 31, 2020
Derivatives and hedging activities
Schedule of fair value of derivative financial instruments and balance sheet classification	Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of March 31, 2020 As of December 31, 2019 (1) As of March 31, 2020 As of December 31, 2019 (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 $ 1,966 Other Assets $ Total derivatives designated as hedging instruments $ 1,966 $ Derivatives not designated as hedging instruments Interest Rate Swaps $ 225,376 Other Assets $ 14,679 Other Assets $ 4,728 Other Liabilities $ 14,762 Other Liabilities $ 4,680 Total derivatives not designated as hedging instruments $ 14,679 $ 4,728 $ 14,762 $ 4,680 (1) Assets amount does not include accrued interest receivable of $65. (2) Liabilities amount does not include accrued interest payable of $65. (3) Notional amount of interest rate swaps at March 31, 2019 $79,667.
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 Loss 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 March 31, 2020 Income March 31, 2020 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ (1,072) $ (1,104) $ 36 Interest Income $ 36 $ 52 $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Gain Gain Loss Recognized from Gain 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 March 31, 2019 Income March 31, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 47 $ 295 $ (248) Interest Income $ (15) $ $ (15) * 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 2020 2019 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 $ 36 $ (15) 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 $ 36 $ (15) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component 52 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (15)
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Loss Amount of Loss Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Three Months Ended Three Months Ended Derivatives Not Designated as Hedging Instruments Derivative March 31, 2020 March 31, 2019 Interest Rate Swaps Other non-interest income $ (131) $ (110) Fee Income Other income / (expense) $ 601 $ 391
Schedule of offsetting derivatives	Offsetting of Derivative Assets as of March 31, 2020 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 $ 16,645 $ $ 16,645 $ $ 16,645 Offsetting of Derivative Liabilities as of March 31, 2020 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 $ 14,762 $ $ 14,762 $ $ 14,762 Offsetting of Derivative Assets as of December 31, 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 $ 5,672 $ $ 5,672 $ $ 5,672 Offsetting of Derivative Liabilities as of December 31, 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 $ 4,680 $ $ 4,680 $ $ 4,680

Deposits (Tables)

Deposits (Tables)	3 Months Ended
	Mar. 31, 2020
Deposits.
Summary of major components of interest-bearing and noninterest-bearing deposits	At the period end March 31, 2020 December 31, 2019 Interest-bearing deposits: Money market accounts $ 360,881 $ 365,463 Now accounts 408,994 402,999 Savings accounts 379,252 370,270 Time deposits less than $250 281,552 231,450 Time deposits $250 or more 112,001 138,069 Total interest-bearing deposits 1,542,680 1,508,251 Noninterest-bearing deposits 467,315 463,238 Total deposits $ 2,009,995 $ 1,971,489

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
	Mar. 31, 2020
Short-term borrowings
Summary of short-term borrowings	For the three months ended March 31, 2020 Weighted Ending Maximum Weighted Average Balance Average Month-End Average Rate at at March 31, 2020 Balance Balance Rate March 31,2020 FHLB advances $ 164,150 $ 142,121 $ 164,150 1.62 % 0.62 % At and for the year ended December 31, 2019 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 152,150 $ 62,941 $ 152,150 2.61 % 1.84 %
Schedule of long-term debt consisting of advances	Interest Rate Due Fixed March 31, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 $ 5,000 June 2020 2.22 6,000 6,000 December 2020 1.84 5,000 5,000 June 2021 1.99 10,000 10,000 March 2023 4.69 6,250 6,733 $ 32,250 $ 32,733
Schedule of maturities of long-term debt	2020 $ 17,480 2021 12,058 2022 2,157 2023 555 $ 32,250

Summary of significant accoun_3

Summary of significant accounting policies (Details) $ in Thousands	1 Months Ended		2 Months Ended	3 Months Ended
	May 06, 2020USD ($)item	Apr. 17, 2020USD ($)item	May 06, 2020USD ($)customer	Mar. 31, 2020USD ($)Office	Mar. 31, 2019USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Number of full-service community banking offices | Office				29
Commercial loan and commercial real estate portfolio deemed non-life sustaining				$ 1,200,000
Commercial loan and commercial real estate portfolio deemed non-life systaining percentage				73.00%
Provision for loan losses				$ 3,500	$ 1,050
Loan receivable balances where payment deferrals were granted	$ 313,600		$ 313,600
PPP loan applications number | item	455	836
PPP total loan amount	$ 24,000	$ 177,900	24,000
PPP average loan amount	53	$ 213	$ 53
Goodwill				$ 63,370		$ 63,400	$ 63,370
Commercial Real Estate
Maximum loan receivable deferred period			4 months
Number of business loans with payment deferrals granted | customer			390
Consumer Loan
Maximum loan receivable deferred period			6 months
Number of business loans with payment deferrals granted | customer			451
Forecast
SBA processing fees	$ 6,600

Other Comprehensive Income (L_3

Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Other Comprehensive Income (Loss)
Net unrealized gain on investment securities available-for-sale	$ 9,197	$ 1,835
Income tax	1,932	385
Net of income taxes	7,265	1,450
Benefit plan adjustments	(6,579)	(6,579)
Income tax	1,382	1,382
Net of income taxes	(5,197)	(5,197)
Derivative adjustment	1,723	687
Income tax	363	144
Net of income taxes	1,360	543
Accumulated other comprehensive income (loss)	$ 3,428	$ (3,205)

Earnings per share - Schedule o

Earnings per share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings per share
Net income, Basic	$ 5,281	$ 6,412
Average common shares outstanding, Basic	7,379,438	7,399,054
Earnings per share, Basic	$ 0.72	$ 0.87
Net income, Diluted	$ 5,281	$ 6,412
Average common shares outstanding, Diluted	7,406,291	7,408,536
Earnings per share, Diluted	$ 0.71	$ 0.87

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) $ in Thousands	Mar. 31, 2020USD ($)company	Dec. 31, 2019USD ($)
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	$ 293,687	$ 328,643
Available-for-sale, Gross Unrealized Gains	9,539	2,988
Available-for-sale, Gross Unrealized Losses	342	1,153
Available-for-sale, Fair Value	302,884	330,478
Held-to-maturity, Amortized Cost	7,520	7,656
Held-to-maturity, Gross Unrealized Gains	183	233
Held-to-maturity, Gross Unrealized Losses	16
Held-to-maturity, Fair value	7,687	7,889
Equity investments carried at fair value	$ 299	423
Number of equity securities portfolio consisting of stock of other financial institutions | company	2
Fair value of equity portfolio in excess of cost basis	$ 22
Mortgage-backed Securities, U.S. government agencies
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	7,125	8,368
Available-for-sale, Gross Unrealized Gains	178	112
Available-for-sale, Gross Unrealized Losses	3	10
Available-for-sale, Fair Value	7,300	8,470
Held-to-maturity, Amortized Cost	28	31
Held-to-maturity, Fair value	28	31
Mortgage-backed Securities, U.S. government-sponsored enterprises
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	98,880	101,914
Available-for-sale, Gross Unrealized Gains	4,143	1,011
Available-for-sale, Gross Unrealized Losses	3	77
Available-for-sale, Fair Value	103,020	102,848
Held-to-maturity, Amortized Cost	641	773
Held-to-maturity, Gross Unrealized Gains	30	25
Held-to-maturity, Gross Unrealized Losses	1
Held-to-maturity, Fair value	670	798
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	12,675	12,694
Available-for-sale, Gross Unrealized Gains	638	171
Available-for-sale, Gross Unrealized Losses		4
Available-for-sale, Fair Value	13,313	12,861
U.S. government-sponsored enterprises state and municipals
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	83,028	87,156
Available-for-sale, Gross Unrealized Gains	1,562	181
Available-for-sale, Gross Unrealized Losses		227
Available-for-sale, Fair Value	84,590	87,110
U.S. Treasuries
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	21,471	23,966
Available-for-sale, Gross Unrealized Gains	650	162
Available-for-sale, Fair Value	22,121	24,128
Common equity securities.
Schedule of Trading Securities and Other Trading Assets
Equity investments carried at fair value	299	423
State and Municipals, Taxable
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	32,116	35,418
Available-for-sale, Gross Unrealized Gains	772	295
Available-for-sale, Gross Unrealized Losses	328	815
Available-for-sale, Fair Value	32,560	34,898
State and Municipals, Tax-exempt
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	38,392	59,127
Available-for-sale, Gross Unrealized Gains	1,596	1,056
Available-for-sale, Gross Unrealized Losses	8	20
Available-for-sale, Fair Value	39,980	60,163
Held-to-maturity, Amortized Cost	6,851	6,852
Held-to-maturity, Gross Unrealized Gains	153	208
Held-to-maturity, Gross Unrealized Losses	15
Held-to-maturity, Fair value	$ 6,989	$ 7,060

Investment securities - Unreali

Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Investment securities
Net (loss) gains recognized during the period on equity securities	$ (123)	$ 1
Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date	$ (123)	$ 1

Investment securities - Restric

Investment securities - Restricted Investment In Stock (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)security	Mar. 31, 2019USD ($)
Available-for-sale and Held-to-maturity securities
Proceeds from sales of investment securities available-for-sale | $	$ 26,502
Number of securities in continuous unrealized loss position	24
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	5
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Number of securities in continuous unrealized loss position	8
U.S. government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
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	11
Number of securities in continuous unrealized loss positions 12 months or longer	10

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investment securities
Within one year	$ 37,800
After one but within five years	79,696
After five but within ten years	18,995
After ten years	39,313
Available for sale securities	175,804
Mortgage-backed securities	127,080
Total	$ 302,884	$ 330,478

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After ten years, Held to maturity	$ 6,851
Amortized Cost, Held to maturity	6,851
Amortized Cost, Mortgage-backed securities, Held to maturity	669
Held-to-maturity, Amortized Cost	7,520	$ 7,656
Fair Value of Held-to-maturity Securities
Fair Value, After ten years, Held to maturity	6,989
Fair Value, Held to maturity	6,989
Fair Value, Mortgage-backed securities, Held to maturity	698
Held to maturity, Fair Value	$ 7,687	$ 7,889

Investment securities - Pledged

Investment securities - Pledged Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
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	$ 133,308	$ 157,047

Investment securities - Fair Va

Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	$ 11,803	$ 78,239
12 Months or More, Fair Value	1,880	43,281
Less Than 12 Months, Unrealized Losses	352	1,035
12 Months or More, Unrealized Losses	6	118
Total, Fair Value	13,683	121,520
Total, Unrealized Losses	358	1,153
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	8,632	23,929
Less Than 12 Months, Unrealized Losses	328	815
Total, Fair Value	8,632	23,929
Total, Unrealized Losses	328	815
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	3,149	2,684
12 Months or More, Fair Value		1,098
Less Than 12 Months, Unrealized Losses	23	19
12 Months or More, Unrealized Losses		1
Total, Fair Value	3,149	3,782
Total, Unrealized Losses	23	20
U.S. government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		13,695
12 Months or More, Fair Value		36,070
Less Than 12 Months, Unrealized Losses		149
12 Months or More, Unrealized Losses		78
Total, Fair Value		49,765
Total, Unrealized Losses		227
Mortgage-backed Securities, U.S. government agencies
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		992
12 Months or More, Fair Value	1,133	2,362
Less Than 12 Months, Unrealized Losses		1
12 Months or More, Unrealized Losses	3	9
Total, Fair Value	1,133	3,354
Total, Unrealized Losses	3	10
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	22
12 Months or More, Fair Value	747
Less Than 12 Months, Unrealized Losses	1
12 Months or More, Unrealized Losses	3
Total, Fair Value	769
Total, Unrealized Losses	$ 4
Mortgage-backed Securities, U.S. government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		36,939
12 Months or More, Fair Value		3,751
Less Than 12 Months, Unrealized Losses		51
12 Months or More, Unrealized Losses		30
Total, Fair Value		40,690
Total, Unrealized Losses		$ 81

Investment securities - Additio

Investment securities - Additional Information (Details) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)shares	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2019USD ($)
Value of common stock	$ 14,670			$ 14,777
Visa Class A stock
Conversion ratio of common stock	1.6228
Visa Class B stock
Shares held | shares	44,982
Value of common stock	$ 0			0
Federal Home Loan Bank of Pittsburgh (FHLB)
Value of common stock	10,642			10,159
Atlantic Community Bankers Bank (ACBB)
Value of common stock	$ 42			$ 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	Mar. 31, 2020	Dec. 31, 2019
Loans, net and allowance for loan losses
Net deferred loan costs	$ 869	$ 908

Loans, net and allowance for _4

Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable
Loans	$ 2,023,155	$ 1,938,240
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	537,949	522,957
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	1,082,124	1,011,423
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	307,215	301,378
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	$ 95,867	$ 102,482

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
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019
Allowance for loan losses:
Beginning Balance	$ 22,677	$ 21,379
Charge-offs	(798)	(374)
Recoveries	307	50
Provisions	3,500	1,050
Ending balance	25,686	22,105
Beginning Balance	22,677	21,379
Ending balance: individually evaluated for impairment			$ 1,226	$ 777
Charge-offs	(798)	(374)
Ending balance: collectively evaluated for impairment			24,460	21,900
Recoveries	307	50
Ending balance: loans acquired with deteriorated credit quality	25,686	22,105	25,686	22,677
Provisions	3,500	1,050
Allowance for credit losses increase (decrease)	$ 3,000
Allowance for credit losses increase (decrease) percentage	13.30%
Loans receivable:
Total Loans			2,023,155	1,938,240
Ending balance: individually evaluated for impairment			11,224	10,120
Ending balance: collectively evaluated for impairment			2,011,931	1,928,120
Total Loans			2,023,155	1,938,240
Ending balance	$ 25,686	22,105
Ending balance: individually evaluated for impairment			11,224	10,120
Ending balance: collectively evaluated for impairment			2,011,931	1,928,120
Commercial
Allowance for loan losses:
Beginning Balance	6,888	5,516
Charge-offs	(650)	(77)
Recoveries	267	8
Provisions	1,464	508
Ending balance	7,969	5,955
Beginning Balance	6,888	5,516
Ending balance: individually evaluated for impairment			764	363
Charge-offs	(650)	(77)
Ending balance: collectively evaluated for impairment			7,205	6,525
Recoveries	267	8
Ending balance: loans acquired with deteriorated credit quality	7,969	5,955	7,969	6,888
Provisions	1,464	508
Loans receivable:
Total Loans			537,949	522,957
Ending balance: individually evaluated for impairment			5,662	4,658
Ending balance: collectively evaluated for impairment			532,287	518,299
Total Loans			537,949	522,957
Ending balance	7,969	5,955
Ending balance: individually evaluated for impairment			5,662	4,658
Ending balance: collectively evaluated for impairment			532,287	518,299
Real estate Commercial
Allowance for loan losses:
Beginning Balance	11,496	10,736
Charge-offs		(6)
Provisions	1,511	344
Ending balance	13,007	11,074
Beginning Balance	11,496	10,736
Ending balance: individually evaluated for impairment			270	279
Charge-offs		(6)
Ending balance: collectively evaluated for impairment			12,737	11,217
Ending balance: loans acquired with deteriorated credit quality	13,007	11,074	13,007	11,496
Provisions	1,511	344
Loans receivable:
Total Loans			1,082,124	1,011,423
Ending balance: individually evaluated for impairment			3,526	3,048
Ending balance: collectively evaluated for impairment			1,078,598	1,008,375
Total Loans			1,082,124	1,011,423
Ending balance	13,007	11,074
Ending balance: individually evaluated for impairment			3,526	3,048
Ending balance: collectively evaluated for impairment			1,078,598	1,008,375
Real estate Residential
Allowance for loan losses:
Beginning Balance	3,226	3,892
Charge-offs	(54)	(159)
Recoveries	10	4
Provisions	442	143
Ending balance	3,624	3,880
Beginning Balance	3,226	3,892
Ending balance: individually evaluated for impairment			192	135
Charge-offs	(54)	(159)
Ending balance: collectively evaluated for impairment			3,432	3,091
Recoveries	10	4
Ending balance: loans acquired with deteriorated credit quality	3,624	3,880	3,624	3,226
Provisions	442	143
Loans receivable:
Total Loans			307,215	301,378
Ending balance: individually evaluated for impairment			1,835	2,153
Ending balance: collectively evaluated for impairment			305,380	299,225
Total Loans			307,215	301,378
Ending balance	3,624	3,880
Ending balance: individually evaluated for impairment			1,835	2,153
Ending balance: collectively evaluated for impairment			305,380	299,225
Real estate Residential
Loans receivable:
Total Loans			307,215	301,378
Total Loans			307,215	301,378
Consumer
Allowance for loan losses:
Beginning Balance	1,067	1,235
Charge-offs	(94)	(132)
Recoveries	30	38
Provisions	83	55
Ending balance	1,086	1,196
Beginning Balance	1,067	1,235
Charge-offs	(94)	(132)
Ending balance: collectively evaluated for impairment			1,086	1,067
Recoveries	30	38
Ending balance: loans acquired with deteriorated credit quality	1,086	1,196	1,086	1,067
Provisions	83	55
Loans receivable:
Total Loans			95,867	102,482
Ending balance: individually evaluated for impairment			201	261
Ending balance: collectively evaluated for impairment			95,666	102,221
Total Loans			95,867	102,482
Ending balance	$ 1,086	$ 1,196
Ending balance: individually evaluated for impairment			201	261
Ending balance: collectively evaluated for impairment			$ 95,666	$ 102,221

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	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Allowance for loan losses:
Ending balance	$ 25,686	$ 22,677	$ 22,105	$ 21,379
Ending balance: individually evaluated for impairment	1,226	777
Ending balance: collectively evaluated for impairment	24,460	21,900
Loans receivable:
Ending balance	2,023,155	1,938,240
Ending balance: individually evaluated for impairment	11,224	10,120
Ending balance: collectively evaluated for impairment	2,011,931	1,928,120
Commercial
Allowance for loan losses:
Ending balance	7,969	6,888	5,955	5,516
Ending balance: individually evaluated for impairment	764	363
Ending balance: collectively evaluated for impairment	7,205	6,525
Loans receivable:
Ending balance	537,949	522,957
Ending balance: individually evaluated for impairment	5,662	4,658
Ending balance: collectively evaluated for impairment	532,287	518,299
Real estate Commercial
Allowance for loan losses:
Ending balance	13,007	11,496	11,074	10,736
Ending balance: individually evaluated for impairment	270	279
Ending balance: collectively evaluated for impairment	12,737	11,217
Loans receivable:
Ending balance	1,082,124	1,011,423
Ending balance: individually evaluated for impairment	3,526	3,048
Ending balance: collectively evaluated for impairment	1,078,598	1,008,375
Real estate Residential
Allowance for loan losses:
Ending balance	3,624	3,226	3,880	3,892
Ending balance: individually evaluated for impairment	192	135
Ending balance: collectively evaluated for impairment	3,432	3,091
Loans receivable:
Ending balance	307,215	301,378
Ending balance: individually evaluated for impairment	1,835	2,153
Ending balance: collectively evaluated for impairment	305,380	299,225
Consumer
Allowance for loan losses:
Ending balance	1,086	1,067	$ 1,196	$ 1,235
Ending balance: collectively evaluated for impairment	1,086	1,067
Loans receivable:
Ending balance	95,867	102,482
Ending balance: individually evaluated for impairment	201	261
Ending balance: collectively evaluated for impairment	$ 95,666	$ 102,221

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	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable
Loans	$ 2,023,155	$ 1,938,240
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	537,949	522,957
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	1,082,124	1,011,423
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	307,215	301,378
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	307,215	301,378
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	95,867	102,482
Pass
Accounts, Notes, Loans and Financing Receivable
Loans	1,996,018	1,908,233
Pass | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	528,747	513,994
Pass | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	1,067,426	993,645
Pass | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	304,238	298,449
Pass | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	95,607	102,145
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans	8,932	6,942
Special Mention | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	3,776	3,837
Special Mention | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	5,156	2,508
Special Mention | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans		597
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans	18,205	23,065
Substandard | Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	5,426	5,126
Substandard | Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	9,542	15,270
Substandard | Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	2,977	2,332
Substandard | Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	$ 260	$ 337

Loans, net and allowance for _8

Loans, net and allowance for loan losses - Reclassification of Commercial Credits Category (Details) - Real estate Commercial $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Pass
Accounts, Notes, Loans and Financing Receivable
Change in category	$ 1.1
Special Mention
Accounts, Notes, Loans and Financing Receivable
Change in category	3.8
Substandard
Accounts, Notes, Loans and Financing Receivable
Change in category due to construction delays	$ 5.1

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	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 8,675	$ 7,510
Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	4,373	3,336
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	3,258	2,765
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	843	1,148
Consumer
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 201	$ 261

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	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 17,200	$ 12,801
Current	2,005,955	1,925,439
Total Loans	2,023,155	1,938,240
Loans > 90 Days and Accruing	423	378
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	7,501	3,688
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	601	1,525
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	9,098	7,588
Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,580	3,111
Current	533,369	519,846
Total Loans	537,949	522,957
Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	196	75
Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	11
Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,373	3,036
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	6,306	3,866
Current	1,075,818	1,007,557
Total Loans	1,082,124	1,011,423
Real estate Commercial | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,861	926
Real estate Commercial | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	187	175
Real estate Commercial | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,258	2,765
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Loans	307,215	301,378
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	5,446	4,917
Current	301,769	296,461
Total Loans	307,215	301,378
Loans > 90 Days and Accruing	423	378
Real estate Residential | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,924	2,164
Real estate Residential | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	256	1,227
Real estate Residential | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,266	1,526
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due	868	907
Current	94,999	101,575
Total Loans	95,867	102,482
Consumer | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	520	523
Consumer | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	147	123
Consumer | Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 201	$ 261

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		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 7,299	$ 9,268	$ 7,535
Unpaid Principal Balance, With no related allowance, Total	8,411	10,123	8,714
Average Recorded Investment, With no related allowance, Total	7,418	7,461	7,887
Interest Income Recognized, With no related allowance, Total	26	37	126
Recorded Investment, With an allowance recorded, Total	3,925	4,412	2,585
Unpaid Principal Balance, With an allowance recorded, Total	4,633	4,631	3,299
Related Allowance, With an allowance recorded, Total	1,226	988	777
Average Recorded Investment, With an allowance recorded, Total	3,256	4,201	3,490
Interest Income Recognized, With an allowance recorded, Total	10	23	71
Recorded Investment, Total	11,224	13,680	10,120
Unpaid Principal Balance, Total	13,044	14,754	12,013
Related Allowance, With an allowance recorded, Total	1,226	988	777
Average Recorded Investment, Total	10,674	11,662	11,377
Interest Income Recognized, Total	36	60	197
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	3,706	6,072	3,638
Unpaid Principal Balance, With no related allowance, Total	4,249	6,407	4,175
Average Recorded Investment, With no related allowance, Total	3,672	3,817	3,907
Interest Income Recognized, With no related allowance, Total	16	17	63
Recorded Investment, With an allowance recorded, Total	1,956	940	1,020
Unpaid Principal Balance, With an allowance recorded, Total	1,974	990	1,038
Related Allowance, With an allowance recorded, Total	764	138	363
Average Recorded Investment, With an allowance recorded, Total	1,488	808	1,012
Interest Income Recognized, With an allowance recorded, Total	6	7	32
Recorded Investment, Total	5,662	7,012	4,658
Unpaid Principal Balance, Total	6,223	7,397	5,213
Related Allowance, With an allowance recorded, Total	764	138	363
Average Recorded Investment, Total	5,160	4,625	4,919
Interest Income Recognized, Total	22	24	95
Real estate Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,263	2,098	1,918
Unpaid Principal Balance, With no related allowance, Total	2,574	2,184	2,205
Average Recorded Investment, With no related allowance, Total	2,091	2,034	2,385
Interest Income Recognized, With no related allowance, Total	5	13	38
Recorded Investment, With an allowance recorded, Total	1,263	1,437	1,130
Unpaid Principal Balance, With an allowance recorded, Total	1,924	1,563	1,811
Related Allowance, With an allowance recorded, Total	270	389	279
Average Recorded Investment, With an allowance recorded, Total	1,197	1,295	1,050
Interest Income Recognized, With an allowance recorded, Total		5	10
Recorded Investment, Total	3,526	3,535	3,048
Unpaid Principal Balance, Total	4,498	3,747	4,016
Related Allowance, With an allowance recorded, Total	270	389	279
Average Recorded Investment, Total	3,288	3,329	3,435
Interest Income Recognized, Total	5	18	48
Real estate Residential
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	1,129	860	1,718
Unpaid Principal Balance, With no related allowance, Total	1,369	1,287	2,060
Average Recorded Investment, With no related allowance, Total	1,424	1,415	1,362
Interest Income Recognized, With no related allowance, Total	5	7	25
Recorded Investment, With an allowance recorded, Total	706	2,035	435
Unpaid Principal Balance, With an allowance recorded, Total	735	2,078	450
Related Allowance, With an allowance recorded, Total	192	461	135
Average Recorded Investment, With an allowance recorded, Total	571	2,068	1,408
Interest Income Recognized, With an allowance recorded, Total	4	11	29
Recorded Investment, Total	1,835	2,895	2,153
Unpaid Principal Balance, Total	2,104	3,365	2,510
Related Allowance, With an allowance recorded, Total	192	461	135
Average Recorded Investment, Total	1,995	3,483	2,770
Interest Income Recognized, Total	9	18	54
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	201	238	261
Unpaid Principal Balance, With no related allowance, Total	219	245	274
Average Recorded Investment, With no related allowance, Total	231	195	233
Average Recorded Investment, With an allowance recorded, Total		30	20
Recorded Investment, Total	201	238	261
Unpaid Principal Balance, Total	219	245	274
Average Recorded Investment, Total	$ 231	$ 225	$ 253

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		12 Months Ended
	Mar. 31, 2020USD ($)loansecurity	Mar. 31, 2019USD ($)security	Dec. 31, 2019USD ($)
Number of loans modified | loan	0
Pre-Modification Outstanding Recorded Investment | $	$ 2,140	$ 3,096	$ 2,193
Number of defaults on loans modified as troubled debt restructuring	0
Number of defaults on loans restructured		0
Real estate Commercial
Number of loans modified		1
Recorded Investment | $		$ 340
Real estate Residential
Number of defaults on loans	1
Recorded investment of loans with a default payment | $	$ 52

Other assets - Components of Ot

Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other real estate owned	$ 903	$ 450
Investment in low income housing partnership	6,782	6,901
Mortgage servicing rights	741	738
Bank owned life insurance	35,224	35,041
Restricted equity securities (FHLB and other)	10,684	10,201
Net deferred tax asset	1,598	3,362
Interest rate floor and swaps	16,645	5,672
Other assets	6,743	6,855
Total	79,320	69,220
Interest Rate Floor
Interest rate floor and swaps	1,966	944
Interest Rate Swaps
Interest rate floor and swaps	$ 14,679	$ 4,728

Fair value estimates - Transfer

Fair value estimates - Transfers Between Levels (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair value of financial instruments
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	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	$ 305,336	$ 332,879
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	22,121	24,128
U.S. government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	84,590	87,110
State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	32,560	34,898
State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	39,980	60,163
Mortgage-backed Securities, U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	7,300	8,470
Mortgage-backed Securities, U.S. government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	116,333	115,709
Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	299	423
Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	1,966	944
Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	14,679	4,728
Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(14,762)	(4,680)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	22,420	24,551
Level 1 | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	22,121	24,128
Level 1 | Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	299	423
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	282,916	308,328
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	84,590	87,110
Level 2 | State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	32,560	34,898
Level 2 | State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	39,980	60,163
Level 2 | Mortgage-backed Securities, U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	7,300	8,470
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	116,333	115,709
Level 2 | Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	1,966	944
Level 2 | Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	14,679	4,728
Level 2 | Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	$ (14,762)	$ (4,680)

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	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 2,699	$ 1,808
Other real estate owned	550	283
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	2,699	1,808
Other real estate owned	$ 550	$ 283

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	Mar. 31, 2020	Dec. 31, 2019
Other real estate owned
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 550	$ 283
Range and weighted average of appraisal adjustments	40.30%	43.70%
Range and weighted average of liquidation expenses	5.00%	5.00%
Other real estate owned | Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	18.40%	20.00%
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	63.50%	63.60%
Range and weighted average of liquidation expenses	6.00%	6.00%
Impaired loans
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 2,699	$ 1,808
Range and weighted average of appraisal adjustments	62.50%	54.40%
Range and weighted average of liquidation expenses	5.70%	5.20%
Impaired loans | Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	11.70%	8.60%
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	Mar. 31, 2020	Dec. 31, 2019
Investment securities:
Available-for-sale	$ 302,884	$ 330,478
Common equity securities	299	423
Held-to-maturity	7,687	7,889
Loans held for sale	270	986
Mortgage servicing rights	741	738
Other assets	79,320	69,220
Carrying Value
Financial assets:
Cash and cash equivalents	35,327	31,153
Investment securities:
Available-for-sale	302,884	330,478
Common equity securities	299	423
Held-to-maturity	7,520	7,656
Loans held for sale	270	986
Net loans	1,997,469	1,915,563
Accrued interest receivable	7,283	6,981
Mortgage servicing rights	741	738
Restricted equity securities (FHLB and other)	10,684	10,201
Interest rate floor	1,966	944
Interest rate swaps	14,679	4,728
Total assets	2,379,122	2,309,851
Financial liabilities:
Deposits	2,009,995	1,971,489
Long-term debt	32,250	32,733
Accrued interest payable	1,336	1,277
Interest rate swap	14,762	4,680
Total liabilities	2,058,343	2,010,179
Fair Value
Financial assets:
Cash and cash equivalents	35,327	31,153
Investment securities:
Available-for-sale	302,884	330,478
Common equity securities	299	423
Held-to-maturity	7,687	7,889
Loans held for sale	270	986
Net loans	1,963,402	1,881,658
Accrued interest receivable	7,283	6,981
Mortgage servicing rights	1,299	1,444
Restricted equity securities (FHLB and other)	10,684	10,201
Interest rate floor	1,966	944
Interest rate swaps	14,679	4,728
Total assets	2,345,780	2,276,885
Financial liabilities:
Deposits	2,014,166	1,972,084
Long-term debt	32,864	33,075
Accrued interest payable	1,336	1,277
Interest rate swap	14,762	4,680
Total liabilities	2,063,128	2,011,116
Level 1
Financial assets:
Cash and cash equivalents	35,327	31,153
Investment securities:
Available-for-sale	22,121	24,128
Common equity securities	299	423
Level 2
Investment securities:
Available-for-sale	280,763	306,350
Held-to-maturity	7,687	7,889
Loans held for sale	270	986
Accrued interest receivable	7,283	6,981
Mortgage servicing rights	1,299	1,444
Restricted equity securities (FHLB and other)	10,684	10,201
Interest rate floor	1,966	944
Interest rate swaps	14,679	4,728
Financial liabilities:
Deposits	2,014,166	1,972,084
Long-term debt	32,864	33,075
Accrued interest payable	1,336	1,277
Interest rate swap	14,762	4,680
Level 3
Investment securities:
Net loans	$ 1,963,402	$ 1,881,658

Employee benefit plans - Compon

Employee benefit plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net periodic pension benefit:
Labor and Related Expense	$ 7,856	$ 7,595
Pension Benefits
Net periodic pension benefit:
Labor and Related Expense	306	340
Interest cost	54	128
Expected return on plan assets	(123)	(217)
Amortization of unrecognized net gain	22	45
Net periodic benefit	$ (47)	$ (44)

Employee benefit plans - Additi

Employee benefit plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 5	$ 83
Common stock available for grant as awards	54,506
Non-Performance-based restricted stock | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units vesting period	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
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units	3 years
Average return on equity period used for conditions for vesting of performance-based restricted stock units	3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average vesting period	2 years 7 months 6 days
Restricted Stock | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares	16,854
Unrecognized compensation expense	$ 861
Restricted stock units (RSUs) | 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares		17,345

Derivatives and hedging activ_3

Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020USD ($)security	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 31, 2019USD ($)
Derivatives, Fair Value
Asset Derivatives	$ 16,645		$ 5,672
Liability Derivatives	14,762		4,680
Interest Receivable	7,283		6,981
Interest Payable	1,336		1,277
Net Amounts of Assets presented in the Balance Sheet	14,762		4,680
Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a reduction to interest income	52
Interest Rate Floor
Derivatives, Fair Value
Asset Derivatives	1,966		944
Interest Rate Swaps
Derivatives, Fair Value
Asset Derivatives	14,679		4,728
Credit-risk contract
Derivatives, Fair Value
Posted collateral	13,090		5,120
Net Amounts of Assets presented in the Balance Sheet	83		48
Derivatives designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives	1,966		944
Derivatives designated as hedging instruments | Interest Rate Floor
Derivatives, Fair Value
Notional amount	25
Asset Derivatives			944
Derivatives designated as hedging instruments | Interest Rate Floor | Other Assets.
Derivatives, Fair Value
Asset Derivatives	1,966
Derivatives designated as hedging instruments | Interest Rate Swaps | Other Assets.
Derivatives, Fair Value
Asset Derivatives	14,679		4,728
Derivatives designated as hedging instruments | Interest Rate Swaps | Other Liabilities.
Derivatives, Fair Value
Liability Derivatives	14,762		4,680
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives	14,679		4,728
Liability Derivatives	$ 14,762		4,680
Derivatives not designated as hedging instruments | Interest Rate Swaps
Derivatives, Fair Value
Number of instruments held | security	44
Notional amount	$ 225,376			$ 79,667
Interest Receivable			65
Interest Payable			$ 65
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) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain Recognized in OCI Included Component	$ 1,723		$ 687
Interest income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Reclassified from Accumulated OCI into Income	36	$ (15)
Cash Flow Hedge | Interest Rate Floor | Interest income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Recognized in OCI on Derivative	(1,072)	47
Amount of Gain Recognized in OCI Included Component	(1,104)	295
Amount of Gain Recognized in OCI Excluded Component	36	(248)
Amount of Loss Reclassified from Accumulated OCI into Income	36	(15)
Amount of Gain Reclassified from Accumulated OCI into Income Included Component	52
Amount of Loss Reclassified from Accumulated OCI into Income Excluded Component	$ (16)	$ (15)

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
	Mar. 31, 2020	Mar. 31, 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	$ 1,036	$ 63
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	36	(15)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	36	(15)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component	52
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component	$ (16)	$ (15)

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
	Mar. 31, 2020	Mar. 31, 2019
Fee Income | Other income/(expense)
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ 601	$ 391
Derivatives not designated as hedging instruments | Interest Rate Swaps | Other non-interest income
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ (131)	$ (110)

Derivatives and hedging activ_7

Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Offsetting of Derivative Assets
Gross Amounts of Recognized Assets	$ 16,645	$ 5,672
Net Amounts of Assets presented in the Balance Sheet	16,645	5,672
Net Amount	16,645	5,672
Offsetting of Derivative Liabilities
Gross Amounts of Recognized Liabilities	14,762	4,680
Net Amounts of Assets presented in the Balance Sheet	14,762	4,680
Net Amount	$ 14,762	$ 4,680

Deposits - Components of Intere

Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Deposits.
Money market accounts	$ 360,881	$ 365,463
Now accounts	408,994	402,999
Savings accounts	379,252	370,270
Time deposits less than $250	281,552	231,450
Time deposits $250 or more	112,001	138,069
Total interest-bearing deposits	1,542,680	1,508,251
Noninterest-bearing deposits	467,315	463,238
Total deposits	2,009,995	$ 1,971,489
Increase (decrease) in deposits	$ 38,506
Increase (decrease) in deposits percentage	7.90%
Increase (decrease) in deposits of accounts with balances less than $250 thousand	$ 54,108

Borrowings - Summary of Short-t

Borrowings - Summary of Short-term Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Short-term Debt
Ending Balance	$ 164,150	$ 152,150
FHLB advances
Short-term Debt
Ending Balance	164,150	152,150
Average Balance	142,121	62,941
Maximum Month-End Balance	$ 164,150	$ 152,150
Weighted Average Rate for	1.62%	2.61%
Weighted Average Rate at	0.62%	1.84%

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - Peoples Bank - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Short-term Debt
Maximum borrowing capacity	$ 775,458	$ 723,608
Outstanding amount in borrowings	196,400	184,883
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	$ 155,800	$ 185,750

Borrowings - Long-term debt adv

Borrowings - Long-term debt advances (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument
Long-term debt	$ 32,250	$ 32,733
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	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	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	$ 6,250	$ 6,733
Fixed interest rate (as a percent)	4.69%

Borrowings - Maturities of long

Borrowings - Maturities of long-term debt (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Long-term debt.
2020	$ 17,480
2021	12,058
2022	2,157
2023	555
Total long-term debt	$ 32,250	$ 32,733

Borrowings - Fixed and adjustab

Borrowings - Fixed and adjustable rate information (Details) $ in Thousands	Mar. 31, 2020USD ($)
Long-term debt.
Convertible Debt	$ 0

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income taxes
Federal statutory rate	11.40%	10.60%
Investment and other tax credits	$ 273	$ 388