Peoples Financial Services (PFIS) 10-Q10 Aug 202020 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 31, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity Registrant Name	PEOPLES FINANCIAL SERVICES CORP.
Entity File Number	001-36388
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	23-2391852
Entity Address, Address Line One	150 North Washington Avenue
Entity Address, City or Town	Scranton
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18503
City Area Code	570
Local Phone Number	346-7741
Title of 12(b) Security	Common stock, $2.00 par value
Trading Symbol	PFIS
Security Exchange Name	NASDAQ
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		7,284,209
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001056943
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Cash and due from banks:
Cash and due from banks	$ 27,146	$ 26,943
Interest-bearing deposits in other banks	14,788	4,210
Federal funds sold	10,000
Total cash and due from banks	51,934	31,153
Investment securities:
Available-for-sale	287,709	330,478
Equity investments carried at fair value	338	423
Held-to-maturity: Fair value June 30, 2020, $7,717; December 31, 2019, $7,889	7,401	7,656
Total investment securities	295,448	338,557
Loans	2,181,909	1,938,240
Less: allowance for loan losses	26,957	22,677
Net loans	2,154,952	1,915,563
Loans held for sale	1,939	986
Premises and equipment, net	48,378	47,932
Accrued interest receivable	8,368	6,981
Goodwill	63,370	63,370
Intangible assets, net	1,257	1,565
Other assets	74,778	69,220
Total assets	2,700,424	2,475,327
Deposits:
Noninterest-bearing	575,206	463,238
Interest-bearing	1,634,918	1,508,251
Total deposits	2,210,124	1,971,489
Short-term borrowings	50,000	152,150
Long-term debt	60,938	32,733
Subordinated debentures	33,000
Accrued interest payable	872	1,277
Other liabilities	33,446	18,668
Total liabilities	2,388,380	2,176,317
Stockholders' equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,332,856 shares at June 30, 2020 and 7,388,480 shares at December 31, 2019	14,649	14,777
Capital surplus	133,002	135,251
Retained earnings	159,739	152,187
Accumulated other comprehensive income (loss)	4,654	(3,205)
Total stockholders' equity	312,044	299,010
Total liabilities and stockholders' equity	$ 2,700,424	$ 2,475,327

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position
Held-to-maturity, Fair value	$ 7,717	$ 7,889
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,332,856	7,388,480
Common stock, shares outstanding	7,332,856	7,388,480

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Interest and fees on loans:
Taxable	$ 21,160	$ 20,641	$ 42,077	$ 40,744
Tax-exempt	941	1,109	1,972	2,208
Interest and dividends on investment securities:
Taxable	1,420	1,025	2,968	2,035
Tax-exempt	295	520	594	1,082
Dividends	25	22	48	41
Interest on interest-bearing deposits in other banks	5	15	29	23
Interest on federal funds sold	6		6
Total interest income	23,852	23,332	47,694	46,133
Interest expense:
Interest on deposits	2,864	3,713	6,367	7,124
Interest on short-term borrowings	102	595	675	1,408
Interest on long-term debt	231	296	436	576
Interest on subordinated debt	148		148
Total interest expense	3,345	4,604	7,626	9,108
Net interest income	20,507	18,728	40,068	37,025
Provision for loan losses	1,800	350	5,300	1,400
Net interest income after provision for loan losses	18,707	18,378	34,768	35,625
Noninterest income:
Mortgage banking income	312	137	449	285
Bank owned life insurance income	193	192	380	378
Interest rate swap revenue	249	509	719	789
Net gains (losses) on equity investment securities	39	(9)	(84)	(8)
Net gains on sale of investment securities available-for-sale		23	267	23
Total noninterest income	3,422	4,152	6,972	7,568
Noninterest expense:
Salaries and employee benefits expense	7,048	8,037	14,904	15,632
Net occupancy and equipment expense	3,042	2,849	6,121	5,810
Amortization of intangible assets	154	182	308	374
Professional fees and outside services	611	525	976	856
FDIC insurance and assessments	336	288	410	547
Donations	341	359	679	691
Other expenses	1,710	2,189	3,495	4,009
Total noninterest expense	13,242	14,429	26,893	27,919
Income before income taxes	8,887	8,101	14,847	15,274
Income tax expense	1,311	957	1,990	1,718
Net income	7,576	7,144	12,857	13,556
Other comprehensive income:
Unrealized gain on investment securities available-for-sale	2,094	2,611	9,723	5,050
Reclassification adjustment for net gain on sales included in net income		(23)	(267)	(23)
Change in derivative fair value	(543)	443	493	506
Other comprehensive income	1,551	3,031	9,949	5,533
Income tax expense	325	636	2,090	1,162
Other comprehensive income, net of income taxes	1,226	2,395	7,859	4,371
Comprehensive income	$ 8,802	$ 9,539	$ 20,716	$ 17,927
Net income:
Basic	$ 1.03	$ 0.96	$ 1.75	$ 1.83
Diluted	$ 1.03	$ 0.96	$ 1.74	$ 1.83
Average common shares outstanding:
Basic	7,341,636	7,399,302	7,360,517	7,399,178
Diluted	7,376,700	7,413,114	7,391,202	7,410,558
Dividends declared	$ 0.36	$ 0.34	$ 0.72	$ 0.68
Service charges, fees and commissions
Noninterest income:
Revenue from contracts with customers	$ 1,433	$ 1,981	$ 3,038	$ 3,700
Merchant services income
Noninterest income:
Revenue from contracts with customers	472	457	586	655
Commission and fees on fiduciary activities
Noninterest income:
Revenue from contracts with customers	493	492	999	999
Wealth management income
Noninterest income:
Revenue from contracts with customers	$ 231	$ 370	$ 618	$ 747

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 (loss), 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, 2018	14,798	135,310	136,582	(8,076)	278,614
Net income					13,556
Other comprehensive income (loss), net of income taxes					4,371
Balance at Jun. 30, 2019	14,798	135,384	145,106	(3,705)	291,583
Balance at Mar. 31, 2019	14,798	135,393	140,478	(6,100)	284,569
Net income			7,144		7,144
Other comprehensive income (loss), net of income taxes				2,395	2,395
Dividends declared			(2,516)		(2,516)
Stock based compensation		157			157
Share retirement	(8)	(158)			(166)
Common stock grants awarded, net of unearned compensation	8	(8)
Balance at Jun. 30, 2019	14,798	135,384	145,106	(3,705)	291,583
Balance at Dec. 31, 2019	14,777	135,251	152,187	(3,205)	299,010
Net income			5,281		5,281
Other comprehensive income (loss), 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
Balance at Dec. 31, 2019	14,777	135,251	152,187	(3,205)	299,010
Net income					12,857
Other comprehensive income (loss), net of income taxes					7,859
Balance at Jun. 30, 2020	14,649	133,002	159,739	4,654	312,044
Balance at Mar. 31, 2020	14,670	133,159	154,806	3,428	306,063
Net income			7,576		7,576
Other comprehensive income (loss), net of income taxes				1,226	1,226
Dividends declared			(2,643)		(2,643)
Stock based compensation		186			186
Share retirement	(21)	(343)			(364)
Balance at Jun. 30, 2020	$ 14,649	$ 133,002	$ 159,739	$ 4,654	$ 312,044

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019
Statement of Stockholders' Equity
Dividends declared (in dollars per share)	$ 0.36	$ 0.36	$ 0.34
Common stock grants awarded, net of unearned compensation			$ 164
Common stock grants awarded, net of unearned compensation (in shares)			3,854
Repurchase and retirement, shares	10,383	53,476	3,830

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income	$ 12,857	$ 13,556
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	1,458	1,227
Amortization of right-of-use lease asset	209	187
Amortization of deferred loan costs	(665)	(156)
Amortization of intangibles	308	374
Amortization of low income housing partnerships	262	238
Provision for loan losses	5,300	1,400
Net unrealized loss on equity investment securities	85	8
Net gain (loss) on sale of other real estate owned	(4)	20
Loans originated for sale	(16,215)	(5,848)
Proceeds from sale of loans originated for sale	15,148	5,813
Net gain on sale of loans originated for sale	(156)	(47)
Net amortization of investment securities	553	895
Net gain on sale of investment securities available-for-sale	(267)	(23)
Bank owned life insurance income	(380)	(378)
Deferred income tax expense	619
Stock based compensation	191	240
Net change in:
Accrued interest receivable	(1,387)	(188)
Other assets	(11,445)	(4,114)
Accrued interest payable	(405)	(137)
Other liabilities	13,586	3,022
Net cash provided by operating activities	19,652	16,089
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale	26,502	9,677
Proceeds from repayments of investment securities:
Available-for-sale	34,520	24,651
Held-to-maturity	253	387
Purchases of investment securities:
Available-for-sale	(9,080)	(22,151)
Net redemption (purchase) of restricted equity securities	4,849	(371)
Net increase in lending activities	(244,675)	(36,380)
Purchases of premises and equipment	(1,214)	(2,541)
Proceeds from the sale of premises and equipment		21
Proceeds from sale of other real estate owned	157	111
Net cash used in investing activities	(188,688)	(26,596)
Cash flows from financing activities:
Net increase in deposits	238,635	1,777
Proceeds from long-term debt		16,000
Repayment of long-term debt	(11,970)	(926)
Net decrease in short-term borrowings	(102,150)	(3,800)
Retirement of common stock	(2,568)	(166)
Cash dividends paid	(5,305)	(5,032)
Net cash provided by financing activities	189,817	7,853
Net increase (decrease) in cash and cash equivalents	20,781	(2,654)
Cash and cash equivalents at beginning of period	31,153	32,616
Cash and cash equivalents at end of period	51,934	29,962
Cash paid during the period for:
Interest	8,031	9,245
Income taxes		2,200
Noncash items:
Transfers of loans to other real estate	730	172
Right-of-use assets	899	6,523
Lease liabilities for operating leases	899	$ 6,523
Paycheck Protection Program Liquidity Facility
Cash flows from financing activities:
Proceeds from long-term debt	103,650
Repayment of long-term debt	(63,475)
Subordinated Debentures
Cash flows from financing activities:
Proceeds from long-term debt	$ 33,000

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
Summary of significant accounting policies	Jun. 30, 2020
Summary of significant accounting policies
Summary of significant accounting policies	1. Summary of significan t accounting policies: 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-six 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. In June, we notified our customers and primary state and federal regulators of our intent to permanently close the Duryea, Gouldsboro, and South Scranton branch offices during the third quarter of 2020. Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the six months ended and as of June 30, 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, state and local 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 six months 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. We follow the recommendations of our state and local governments as to conducting business and have opened the lobbies of the majority of our branches while maintaining safety protocols. The Company also maintained active communications with its primary regulatory agencies and critical vendors in an effort to keep all mission-critical activities and functions performing 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 have resulted in less economic activity 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 continues to evolve. 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, including retail, hospitality and restaurants and food and service. 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 were subject to shutdown at the onset of the pandemic. Based on management’s application of its allowance for loan losses methodology and primarily 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, our provision for loan and lease losses for the first six months on 2020 was $5.3 million. 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 Financial Accounting Standards Board (“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. As of July 30, 2020, the Company granted payment deferral requests for up to six months to a total of 481 commercial loans with outstanding loan balances of $306.9 million and to 505 consumer loans with outstanding balances of $23.3 million. 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. The Company began accepting and processing applications for loans under the PPP on April 3, 2020. Through July 30, 2020, the Company processed 1,417 applications from existing and new customers providing over $216.2 million in loans with an average loan amount of $153 thousand furthering Peoples’ commitment to support small businesses. Funding these loans will generate approximately $6.9 million of SBA processing fees. The processing fee income is deferred and amortized over the contractual life of the loan, or accelerated at forgiveness, as an adjustment of yield using the interest method. During the three months ended June 30, 2020, $0.7 million was recognized in interest and fees on loans in the unaudited Consolidated Statements of Income. The Company also has goodwill with a net carrying value of $63.4 million at June 30, 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 2020, management retained a financial advisory firm to assist in the preparation of a quantitative assessment for potential goodwill impairment. To arrive at the fair value of the Company, management utilized an income and market approach and applied weighting factors to each result and concluded the fair value of the Company was in excess of its carrying value, including goodwill and, as such, no impairment exists at June 30, 2020. 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 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. 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 the Company on January 1, 2021. 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 ” The Company adopted the amendments in ASU 2020-04 as of the March 12, 2020 issuance date, on a prospective basis. The adoption did not have an immediate direct impact to our financial statements. As contracts are modified through December 2022, we will assess the impact based on this guidance. We do not expect there will be a material impact to our financial statements.

Other comprehensive income (los

Other comprehensive income (loss)	6 Months Ended
Other comprehensive income (loss)	Jun. 30, 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 June 30, 2020 and December 31, 2019 are as follows: June 30, 2020 December 31, 2019 Net unrealized gain on investment securities available-for-sale $ 11,291 $ 1,835 Income tax 2,371 385 Net of income taxes 8,920 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 1,180 687 Income tax 248 144 Net of income taxes 932 543 Accumulated other comprehensive income (loss) $ 4,654 $ (3,205)

Earnings per share

Earnings per share	6 Months Ended
Earnings per share	Jun. 30, 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 and six months ended June 30, 2020 and 2019: 2020 2019 For the Three Months Ended June 30, Basic Diluted Basic Diluted Net Income $ 7,576 $ 7,576 $ 7,144 $ 7,144 Average common shares outstanding 7,341,636 7,376,700 7,399,302 7,413,114 Earnings per share $ 1.03 $ 1.03 $ 0.96 $ 0.96 2020 2019 For the Six Months Ended June 30 Basic Diluted Basic Diluted Net income $ 12,857 $ 12,857 $ 13,556 $ 13,556 Average common shares outstanding 7,360,517 7,391,202 7,399,178 7,410,558 Earnings per share $ 1.75 $ 1.74 $ 1.83 $ 1.83

Investment securities

Investment securities	6 Months Ended
Investment securities	Jun. 30, 2020
Investment securities
Investment securities	4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at June 30, 2020 and December 31, 2019 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 21,473 $ 604 $ 22,077 U.S. government-sponsored enterprises 79,473 1,628 81,101 State and municipals: Taxable 31,694 1,467 33,161 Tax-exempt 35,617 2,408 38,025 Residential mortgage-backed securities: U.S. government agencies 5,717 154 $ 4 5,867 U.S. government-sponsored enterprises 89,787 4,057 7 93,837 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,657 984 13,641 Total $ 276,418 $ 11,302 $ 11 $ 287,709 Held-to-maturity: Tax-exempt state and municipals $ 6,850 $ 294 $ $ 7,144 Residential mortgage-backed securities: U.S. government agencies 26 26 U.S. government-sponsored enterprises 525 22 547 Total $ 7,401 $ 316 $ $ 7,717 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 June 30, 2020 and December 31, 2019, we had $338 and $423 respectively, in equity securities recorded at fair value. At June 30, 2020, the fair value of our equity portfolio exceeded the cost basis by $61. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30 2020 (in thousands): Three Months Ended June 30, 2020 2019 Net gain (loss) recognized during the period on equity securities $ 39 $ (9) Less: Net gains recognized during the period on equity securities sold during the period Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ 39 $ (9) For the Six Months Ended June 30, 2020 2019 Net loss recognized during the period on equity securities $ (84) $ (8) Less: Net gains (loss) recognized during the period on equity securities sold during the period Unrealized loss recognized during the reporting period on equity securities still held at the reporting date $ (84) $ (8) Restricted Investment In Stock Restricted investment in stock includes FHLB with a carrying cost of $5,311 and $10,159 at June 30, 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 June 30, 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 decrease in FHLB stock from December 31, 2019 is due to a decrease 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 June 30, 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 June 30, 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 June 30, 2020, is summarized as follows: Fair June 30, 2020 Value Within one year $ 34,156 After one but within five years 76,757 After five but within ten years 19,411 After ten years 40,631 170,955 Mortgage-backed and other amortizing securities 116,754 Total $ 287,709 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at June 30, 2020, is summarized as follows: Amortized Fair June 30, 2020 Cost Value After ten years $ 6,850 $ 7,144 6,850 7,144 Mortgage-backed securities 551 573 Total $ 7,401 $ 7,717 Securities with a carrying value of $131,913 and $157,047 at June 30, 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 June 30, 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 June 30, 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 June 30, 2020 Value Losses Value Losses Value Losses Residential mortgage-backed securities: U.S. government agencies $ 747 $ 2 $ 571 $ 2 $ 1,318 $ 4 U.S. government-sponsored enterprises 1,197 4 561 3 1,758 7 Total $ 1,944 $ 6 $ 1,132 $ 5 $ 3,076 $ 11 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 second quarter of 2020. The Company had 15 mortgage-backed securities that were in unrealized loss positions at June 30, 2020. Of these securities, eight were in a continuous unrealized loss position for twelve months or more. Management does not consider the unrealized losses on the debt securities, as a result of changes in interest rates, to be OTTI based on historical evidence that indicates the cost of these securities is recoverable within a reasonable period of time in relation to normal cyclical changes in the market rates of interest. Moreover, because there has been no material change in the credit quality of the issuers or other events or circumstances that may cause a significant adverse impact on the fair value of these securities, and management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider the unrealized losses to be OTTI at June 30, 2020. There was no OTTI recognized for the three or six months ended June 30, 2020 and 2019.

Loans, net and allowance for lo

Loans, net and allowance for loan losses	6 Months Ended
Loans, net and allowance for loan losses	Jun. 30, 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 June 30, 2020 and December 31, 2019 are summarized as follows. The Company had net deferred loan origination fees of $3,508 at June 30, 2020 due to the origination of $201.3 million of PPP loans and $6.6 million of SBA processing fees during the 2020 second quarter. At December 31, 2019, we had net deferred loan costs of June 30, 2020 December 31, 2019 Commercial $ 694,551 $ 522,957 Real estate: Commercial 1,099,818 1,011,423 Residential 297,880 301,378 Consumer 89,660 102,482 Total $ 2,181,909 $ 1,938,240 The PPP loans are included in the commercial loan classification and had an outstanding balance at June 30, 2020 of $201,274. The PPP loans are risk rated ‘Pass’ and do not carry an allowance for loan losses due to a 100% SBA guarantee. The outstanding balance is considered current at June 30, 2020. The changes in the allowance for loan losses account by major classification of loan for the three and six months ended June 30, 2020 and 2019 are summarized as follows: Real estate June 30, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance April 1, 2020 $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Charge-offs (335) (47) (81) (154) (617) Recoveries 31 3 54 88 Provisions 822 895 21 62 1,800 Ending balance $ 8,487 $ 13,855 $ 3,567 $ 1,048 $ 26,957 Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance April 1, 2019 $ 5,955 $ 11,074 $ 3,880 $ 1,196 $ 22,105 Charge-offs (10) (343) (143) (80) (576) Recoveries 2 12 37 51 Provisions 195 311 (134) (22) 350 Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 Real estate June 30, 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 (985) (47) (135) (248) (1,415) Recoveries 298 13 84 395 Provisions 2,286 2,406 463 145 5,300 Ending balance $ 8,487 $ 13,855 $ 3,567 $ 1,048 $ 26,957 Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2019 $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Charge-offs (87) (349) (302) (212) (950) Recoveries 10 16 75 101 Provisions 703 655 9 33 1,400 Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 The Company's allowance for loan losses increased $4.3 million or 18.9% in 2020, due largely to the adjustment of qualitative factors in our allowance for loan losses methodology, which reflect current economic decline 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 June 30, 2020 and December 31, 2019 is summarized as follows: Real estate June 30, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 8,487 $ 13,855 $ 3,567 $ 1,048 $ 26,957 Ending balance: individually evaluated for impairment 1,339 239 163 1,741 Ending balance: collectively evaluated for impairment $ 7,148 $ 13,616 $ 3,404 $ 1,048 $ 25,216 Loans receivable: Ending balance $ 694,551 $ 1,099,818 $ 297,880 $ 89,660 $ 2,181,909 Ending balance: individually evaluated for impairment 5,408 4,490 1,925 160 11,983 Ending balance: collectively evaluated for impairment $ 689,143 $ 1,095,328 $ 295,955 $ 89,500 $ 2,169,926 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 June 30, 2020 and December 31, 2019: Special June 30, 2020 Pass Mention Substandard Doubtful Total Commercial $ 677,234 $ 10,915 $ 6,402 $ $ 694,551 Real estate: Commercial 1,083,864 6,606 9,348 1,099,818 Residential 294,627 3,253 297,880 Consumer 89,483 177 89,660 Total $ 2,145,208 $ 17,521 $ 19,180 $ $ 2,181,909 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 June 30, 2020 is primarily associated with the reclassification of one large commercial real estate credit and two large commercial credits. The commercial real estate credit totaled $3.8 million and was downgraded to special mention due to the loss of major tenants. The commercial credits relate to a million has experienced financial difficulties directly related to COVID-19. The decrease to substandard loans resulted from the payoff of a Information concerning nonaccrual loans by major loan classification at June 30, 2020 and December 31, 2019 is summarized as follows: June 30, 2020 December 31, 2019 Commercial $ 5,443 $ 3,336 Real estate: Commercial 3,109 2,765 Residential 1,135 1,148 Consumer 160 261 Total $ 9,847 $ 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 June 30, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 329 $ 351 $ 5,468 $ 6,148 $ 688,403 $ 694,551 $ 25 Real estate: Commercial 575 234 3,149 3,958 1,095,860 1,099,818 40 Residential 80 150 1,361 1,591 296,289 297,880 226 Consumer 229 66 160 455 89,205 89,660 Total $ 1,213 $ 801 $ 10,138 $ 12,152 $ 2,169,757 $ 2,181,909 $ 291 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 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 June 30, 2020, the Company granted payment deferral requests for up to six months on 479 commercial loans with outstanding balances of $306,770 and on 512 consumer loans with outstanding balances of $23,349 . In accordance with Section 4013 of the CARES Act and the interagency statement, we have not accounted for such loans as TDRs, nor have we designated them as past due or nonaccrual. The increase in the greater than 90 day category was due to an increase in nonaccrual loans which are included in the category. large commercial loans were added to non-accrual. All 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 and six months ended June 30, 2020 and June 30, 2019, and as of and for the year ended December 31, 2019 by major loan classification: This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2020 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 2,921 $ 3,480 $ 3,314 $ 9 $ 3,422 $ 25 Real estate: Commercial 2,042 2,606 2,153 17 2,074 22 Residential 1,115 1,273 1,122 5 1,321 10 Consumer 160 178 181 207 Total 6,238 7,537 6,770 31 7,024 57 With an allowance recorded: Commercial 2,487 2,516 1,339 2,222 1,821 6 Real estate: Commercial 2,448 2,774 239 1,856 1,614 Residential 810 878 163 758 3 650 7 Consumer Total 5,745 6,168 1,741 4,836 3 4,085 13 Total impaired loans Commercial 5,408 5,996 1,339 5,536 9 5,243 31 Real estate: Commercial 4,490 5,380 239 4,009 17 3,688 22 Residential 1,925 2,151 163 1,880 8 1,971 17 Consumer 160 178 181 207 Total $ 11,983 $ 13,705 $ 1,741 $ 11,606 $ 34 $ 11,109 $ 70 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 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2019 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 4,495 $ 4,931 $ 5,284 $ 17 $ 4,043 $ 34 Real estate: Commercial 2,957 3,116 2,528 10 2,341 23 Residential 619 888 740 4 1,150 11 Consumer 251 261 245 214 Total 8,322 9,196 8,797 31 7,748 68 With an allowance recorded: Commercial 1,420 1,432 $ 615 1,180 5 1,012 12 Real estate: Commercial 910 1,380 216 1,174 5 1,166 10 Residential 1,661 1,740 295 1,848 7 1,932 18 Consumer 20 Total 3,991 4,552 1,126 4,202 17 4,130 40 Total impaired loans Commercial 5,915 6,363 615 6,464 22 5,055 46 Real estate: Commercial 3,867 4,496 216 3,702 15 3,507 33 Residential 2,280 2,628 295 2,588 11 3,082 29 Consumer 251 261 245 234 Total $ 12,313 $ 13,748 $ 1,126 $ 12,999 $ 48 $ 11,878 $ 108 Loan Modifications/Troubled Debt Restructurings/COVID-19 Included in the commercial loan and commercial and residential real estate categories are troubled debt restructurings that are classified as impaired. Troubled debt restructurings totaled $3,168 at June 30 2020, $2,193 at December 31, 2019 and $2,677 at June 30, 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. ● 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. The following table provides the number of loans modified in a troubled debt restructuring and the pre- and post-modification recorded investment by class of receivable: 2020 For the Three Months Ended June 30, For the Six Months Ended June 30, Pre-Modification Post-Modification Pre-Modification Post-Modification Number Recorded Recorded Number Recorded Recored of Loans Investment Investment of Loans Investment Investment Commercial real estate 3 $ 1,073 $ 1,073 3 $ 1,073 $ 1,073 Commercial and industrial 1 12 12 1 12 12 Total 4 $ 1,085 $ 1,085 4 $ 1,085 $ 1,085 2019 For the Three Months Ended June 30, For the Six Months Ended June 30, Pre-Modification Post-Modification Pre-Modification Post-Modification Number Recorded Recorded Number Recorded Recored of Loans Investment Investment of Loans Investment Investment Commercial real estate 1 $ 340 $ 300 Total $ $ 1 $ 340 $ 300 During the six months ended June 30, 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 restructurings. During the three and six months ended June 30, 2019, there were payment defaults on two restructured commercial real estate loans with balances totaling $335 which were subsequently charged-off. The Company has received a significant number of requests to modify loan terms and/or defer principal and/or interest payments, and has agreed to many such deferrals or are in the process of doing so. Under Section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019, will be considered current for COVID-19 modifications. COVID-19 that would otherwise be categorized as a troubled debt restructuring (TDR), and suspend any determination of a loan modified as a result of COVID-19 being a TDR, including the requirement to determine impairment for accounting purposes. Similarly, FASB has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief are not TDRs. Beginning in March 2020, the Company began receiving requests for temporary modifications to the repayment structure for borrower loans. As of June 30, 2020, the Company had 479 commercial loan and 512 consumer loan temporary modifications with principal balances totaling $330,119. As of July 30, 2020, 481 commercial loans and 505 consumer loans were on deferral with principal balances of $330,135. The following table provides information as of June 30, 2020 with respect to the Company’s payment deferrals granted on commercial loans by North American Industry Classification System (“NAICS”) categories: NAICS category Number of Loans Balance Percentage of Total Loan Portfolio Percentage of Tier 1 Capital (Bank) Lessors of Nonresidential Buildings 65 $ 71,899 3.3 % 26.9 % Lessors of Residential Buildings and Dwellings 64 53,564 2.5 19.9 Hotels and Motels 27 39,261 1.8 14.5 Full-Service Restaurants 33 27,783 1.3 10.3 Limited-Service Restaurants 8 11,829 0.5 4.4 Gasoline Stations with Convenience Stores 18 12,422 0.6 4.6 Construction and Mining 13 9,718 0.4 3.6 Assisted Living Facilities for the Elderly 2 6,319 0.3 2.3 Colleges, Universities, and Professional Schools 1 6,301 0.3 2.3 All Others 248 67,674 3.1 24.9 479 $ 306,770 14.1 % 113.7 %

Other assets

Other assets	6 Months Ended
Other assets	Jun. 30, 2020
Other assets
Other assets	6. Other assets: The components of other assets at June 30, 2020, and December 31, 2019 are summarized as follows: June 30, 2020 December 31, 2019 Other real estate owned $ 964 $ 450 Investment in low income housing partnership 6,639 6,901 Mortgage servicing rights 772 738 Bank owned life insurance 35,412 35,041 Restricted equity securities (FHLB and other) 5,353 10,201 Net deferred tax asset 1,272 3,362 Interest rate floor 2,019 944 Interest rate swaps 15,985 4,728 Other assets 6,362 6,855 Total $ 74,778 $ 69,220

Fair value estimates

Fair value estimates	6 Months Ended
Fair value estimates	Jun. 30, 2020
Fair value estimates
Fair value estimates	7. Fair value estimates: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements. In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument. Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include: ● Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ● Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. An asset’s or liability’s placement in the fair value hierarchy is based on the lowest level of input that is significant to the fair value estimate. During the periods ended June 30, 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: Loans held for sale: Interest rate swaps and options: Assets and liabilities measured at fair value on a recurring basis at June 30, 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 June 30, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 22,077 $ 22,077 $ U.S. government-sponsored enterprises 81,101 $ 81,101 State and municipals: Taxable 33,161 33,161 Tax-exempt 38,025 38,025 Mortgage-backed securities: U.S. government agencies 5,867 5,867 U.S. government-sponsored enterprises 107,478 107,478 Common equity securities 338 338 Loan held for sale 1,939 1,939 Interest rate floor-other assets 2,019 2,019 Interest rate swap-other assets 15,912 15,912 Interest rate swap-other liabilities (16,005) (16,005) Total $ 291,912 $ 22,415 $ 269,497 $ 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 June 30, 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 June 30, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 4,004 $ 4,004 Other real estate owned $ 588 $ 588 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 June 30, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 4,004 Appraisal of collateral Appraisal adjustments 5.0% to 97.0% (57.2)% Liquidation expenses 3.0% to 6.0% (5.6)% Other real estate owned $ 588 Appraisal of collateral Appraisal adjustments 18.4% to 63.5% (40.6)% 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 June 30, 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 June 30, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 51,934 $ 51,934 $ 51,934 Investment securities: Available-for-sale 287,709 287,709 22,077 $ 265,632 Common equity securities 338 338 338 Held-to-maturity 7,401 7,717 7,717 Loans held for sale 1,939 1,939 1,939 Net loans 2,154,952 2,132,783 $ 2,132,783 Accrued interest receivable 8,368 8,368 8,368 Mortgage servicing rights 772 1,359 1,359 Restricted equity securities (FHLB and other) 5,353 5,353 5,353 Interest rate floor 2,019 2,019 2,019 Interest rate swaps 15,912 15,912 15,912 Total $ 2,536,697 $ 2,515,431 Financial liabilities: Deposits $ 2,210,124 $ 2,214,974 $ 2,214,974 Long-term debt 60,938 61,453 61,453 Subordinated debentures 33,000 33,201 33,201 Accrued interest payable 872 872 872 Interest rate swaps 16,005 16,005 16,005 Total $ 2,320,939 $ 2,326,505 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 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	6 Months Ended
Employee benefit plans	Jun. 30, 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 and six months ended June 30, salaries and employee benefits expense includes approximately $353 and $660 in 2020 and $415 and $755 in 2019 relating to the employee benefit plans. Pension Benefits Three Months Ended June 30, 2020 2019 Components of net periodic pension benefit: Interest cost $ 163 $ 192 Expected return on plan assets (371) (325) Amortization of unrecognized net gain 65 68 Net periodic benefit $ (143) $ (65) Pension Benefits Six Months Ended June 30, 2020 2019 Components of net periodic pension cost: Interest cost $ 217 $ 320 Expected return on plan assets (494) (542) Amortization of unrecognized net gain 87 113 Net periodic benefit cost $ (190) $ (109) The 2008 long-term incentive plan (“2008 Plan”) allowed for eligible participants to be granted equity awards. No awards may be made under the 2008 Plan after January 15, 2018. In May 2017, the Company’s stockholders approved the 2017 equity incentive plan (“2017 Plan”). The 2017 Plan allows for eligible participants to be granted equity awards. Under the 2017 Plan the Compensation Committee of the Board of Directors has the authority to, among other things: ● Select the persons to be granted awards under the 2017 Plan. ● Determine the type, size and term of awards. ● Determine whether such performance objectives and conditions have been met. ● Accelerate the vesting or excercisability of an award. Persons eligible to receive awards under the 2017 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries. As of June 30, 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 The 2017 Plan authorizes grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. For the six months ended June 30, 2020 and 2019, the Company granted awards of restricted stock and restricted stock units under the 2017 Plan, 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 $186 and $191 for the three and six months ended June 30, 2020 for awards granted under the 2017 Plan. The Company recognized compensation expense of $157 and $240 for the three and six months ended June 30, 2019 for awards granted under the 2017 Plan. As of June 30, 2020, the Company had $769 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 years .

Derivatives and hedging activit

Derivatives and hedging activities	6 Months Ended
Derivatives and hedging activities	Jun. 30, 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/expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. 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. During 2020, such derivatives were used to hedge the variable cash flows associated with existing variable-rate assets and issuances of debt. The Company executed an interest rate swap to reduce its exposure to variability in the interest rate associated with floating-rate borrowings. 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 and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt/assets. During 2020, the Company estimates that an additional $134 will be reclassified as an increase to interest expense and an additional $531 will be reclassified as an increase to interest income. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of June 30, 2020, the Company had 52 interest rate swaps with an aggregate notional amount of $254,598 related to this program. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of June 30 2020 and December 31, 2019. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of June 30, 2020 As of December 31, 2019 (1) As of June 30, 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 $ 2,019 Other Assets $ 944 Cash Flow Swap $ 50,000 Other Liabilities 510 Total derivatives designated as hedging instruments $ 2,019 $ 944 510 Derivatives not Interest Rate Swaps (3) $ 254,598 Other Assets $ 15,912 Other Assets $ 4,728 Other Liabilities $ 16,005 Other Liabilities $ 4,680 Total derivatives not $ 15,912 $ 4,728 $ 16,005 $ 4,680 (1) Assets amount does not include accrued interest receivable of $195 . (2) Liabilities amount does not include accrued interest payable of $195 . (3) Notional amount of interest rate swaps at June 30, 2019 $123,351 . 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 June 30, 2020 and June 30, 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 June 30, 2020 Income June 30, 2020 Derivatives in Cash Flow Hedging Relationships Cash Flow Swap $ (510) $ (510) $ Interest Expense $ 73 $ 73 $ Interest Rate Floor () $ 150 $ 151 $ (1) Interest Income $ 110 $ 126 $ (16) Total $ (360) $ (359) $ (1) $ 183 $ 199 $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships June 30, 2019 Income June 30, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor () $ 474 $ 827 $ (353) Interest Income $ (31) $ $ (31) * Amounts disclosed are gross and not net of taxes. Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Income and Comprehensive Income The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the six months ended June 30, 2020 and June 30, 2019. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2020 2020 2019 2019 Interest Income Interest Expense Interest Income Interest Expense 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 $ 110 $ 73 $ (31) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 110 $ 73 $ (31) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component 126 $ 73 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (31) Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2020 and 2019. Amount of Loss Amount of Loss Amount of Loss Amount of Loss Recognized in Recognized in Recognized in Recognized in Location of Gain or (Loss) Income Income Income Income Recognized in Income on Three Months Ended Six Months Ended Three Months Ended Six Months Ended Derivatives Not Designated as Hedging Instruments Derivative June 30, 2020 June 30, 2020 June 30, 2019 June 30, 2019 Interest Rate Swaps Other non-interest income $ (10) $ (141) $ (236) $ (346) Fee Income Other income $ 259 $ 860 $ 744 $ 1,136 Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 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 June 30, 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 $ 17,930 $ $ 17,930 $ $ 17,930 Offsetting of Derivative Liabilities as of June 30, 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 $ 16,515 $ $ 16,515 $ $ 16,515 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. As of June 30, 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 $93. 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 $14,690 against its obligations under these agreements as of June 30, 2020, compared to having posted collateral of $4,140 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	6 Months Ended
Deposits	Jun. 30, 2020
Deposits.
Deposits	10. Deposits The major components of interest-bearing and noninterest-bearing deposits at June 30, 2020 and December 31, 2019 are summarized as follows: At the period end June 30, 2020 December 31, 2019 Interest-bearing deposits: Money market accounts $ 434,628 $ 365,463 Now accounts 440,202 402,999 Savings accounts 404,040 370,270 Time deposits less than $250 251,121 231,450 Time deposits $250 or more 104,927 138,069 Total interest-bearing deposits 1,634,918 1,508,251 Noninterest-bearing deposits 575,206 463,238 Total deposits $ 2,210,124 $ 1,971,489 The growth in deposits occurred primarily in non-maturity deposits due to proceeds of PPP loans retained on deposit by our commercial borrowers. Time deposits $250 thousand or more decreased due to the maturity of a few large public fund certificates of deposit.

Borrowings

Borrowings	6 Months Ended
Borrowings	Jun. 30, 2020
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 June 30, 2020 and December 31, 2019: At and for the six months ended June 30, 2020 Weighted Maximum Weighted Average Ending Average Month-End Average Rate at Balance Balance Balance Rate June 30, 2020 FHLB advances $ 50,000 $ 117,784 $ 164,150 1.15 % 0.67 % 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 June 30, 2020, the maximum borrowing capacity was $808,312 of which $70,762 was outstanding in borrowings and $137,600 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 deposits. Short-term borrowings were used to fund a portion of our loan growth during the first six months of 2020. 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 and from the Federal Reserve Bank under the PPPLF with, generally, maturities of twenty-four months, at June 30, 2020 and December 31, 2019 are as follows: Interest Rate Due Fixed June 30, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 June 2020 2.22 6,000 December 2020 1.84 $ 5,000 5,000 June 2021 1.99 10,000 10,000 April 2022 0.35 40,175 March 2023 4.69 5,763 6,733 $ 60,938 $ 32,733 Maturities of long-term debt, by contractual maturity, for the remainder of 2020 and subsequent years are as follows: 2020 $ 5,992 2021 12,058 2022 42,333 2023 555 $ 60,938 None of the advances from the FHLB totaling $20,763 are convertible. The advances under the PPPLF due in April 2022 with an outstanding balance of $40,175 may be prepaid without penalty prior to maturity whether or not the PPP loans collateralizing the advances have matured.

Subordinated debt

Subordinated debt	6 Months Ended
Subordinated debt	Jun. 30, 2020
Subordinated debt
Subordinated debt	12. Subordinated debt On June 1, 2020, the Company sold $33,000 aggregate principal amount of Subordinated Notes due 2030 (the “2020 Notes”) to accredited investors. The 2020 Notes are intended to be treated as Tier 2 capital for regulatory capital purposes. The 2020 Notes bear interest at a rate of 5.375% per year for the first five years and then float based on the benchmark rate, provided that the interest rate applicable to the outstanding principal balance during the period the 2020 Notes are floating will at no time be less the 4.75% . Interest will be payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2020, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 1, June 1, September 1, and December 1. The 2020 Notes will mature on June 1, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after June 1, 2025 and prior to June 1, 2030. Additionally, if all or any portion of the 2020 Notes cease to be deemed Tier 2 Capital, the Company may redeem, in whole and not in part, at any time upon giving not less than ten days ’ notice, an amount equal to one hundred percent ( 100% ) of the principal amount outstanding plus accrued but unpaid interest to but excluding the date fixed for redemption. Holders of the 2020 Notes may not accelerate the maturity of the 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar law of the Company or the Bank.

Income taxes

Income taxes	6 Months Ended
Income taxes	Jun. 30, 2020
Income taxes
Income taxes	13. Income taxes The effective tax rate of the Company was 14.8% and 13.4% for the three and six months ended June 30, 2020 compared to 11.8% and 11.2% for the three and six months ended June 30, 2019. The three and six months ended June 30, 2020 includes before tax investment tax credits of $273 and $546 compared to before tax investment tax credits and other credits of $390 and $778 for the same period last year.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	6 Months Ended
Summary of significant accounting policies (Policies)	Jun. 30, 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-six 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. In June, we notified our customers and primary state and federal regulators of our intent to permanently close the Duryea, Gouldsboro, and South Scranton branch offices during the third quarter of 2020.
Basis of presentation	Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the six months ended and as of June 30, 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, state and local 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 six months 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. We follow the recommendations of our state and local governments as to conducting business and have opened the lobbies of the majority of our branches while maintaining safety protocols. The Company also maintained active communications with its primary regulatory agencies and critical vendors in an effort to keep all mission-critical activities and functions performing 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 have resulted in less economic activity 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 continues to evolve. 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, including retail, hospitality and restaurants and food and service. 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 were subject to shutdown at the onset of the pandemic. Based on management’s application of its allowance for loan losses methodology and primarily 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, our provision for loan and lease losses for the first six months on 2020 was $5.3 million. 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 Financial Accounting Standards Board (“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. As of July 30, 2020, the Company granted payment deferral requests for up to six months to a total of 481 commercial loans with outstanding loan balances of $306.9 million and to 505 consumer loans with outstanding balances of $23.3 million. 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. The Company began accepting and processing applications for loans under the PPP on April 3, 2020. Through July 30, 2020, the Company processed 1,417 applications from existing and new customers providing over $216.2 million in loans with an average loan amount of $153 thousand furthering Peoples’ commitment to support small businesses. Funding these loans will generate approximately $6.9 million of SBA processing fees. The processing fee income is deferred and amortized over the contractual life of the loan, or accelerated at forgiveness, as an adjustment of yield using the interest method. During the three months ended June 30, 2020, $0.7 million was recognized in interest and fees on loans in the unaudited Consolidated Statements of Income. The Company also has goodwill with a net carrying value of $63.4 million at June 30, 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 2020, management retained a financial advisory firm to assist in the preparation of a quantitative assessment for potential goodwill impairment. To arrive at the fair value of the Company, management utilized an income and market approach and applied weighting factors to each result and concluded the fair value of the Company was in excess of its carrying value, including goodwill and, as such, no impairment exists at June 30, 2020. 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 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. 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 the Company on January 1, 2021. 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 ” The Company adopted the amendments in ASU 2020-04 as of the March 12, 2020 issuance date, on a prospective basis. The adoption did not have an immediate direct impact to our financial statements. As contracts are modified through December 2022, we will assess the impact based on this guidance. We do not expect there will be a material impact to our financial statements.

Other comprehensive income (l_2

Other comprehensive income (loss) (Tables)	6 Months Ended
Other comprehensive income (loss) (Tables)	Jun. 30, 2020
Other comprehensive income (loss)
Schedule of components of accumulated other comprehensive loss	June 30, 2020 December 31, 2019 Net unrealized gain on investment securities available-for-sale $ 11,291 $ 1,835 Income tax 2,371 385 Net of income taxes 8,920 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 1,180 687 Income tax 248 144 Net of income taxes 932 543 Accumulated other comprehensive income (loss) $ 4,654 $ (3,205)

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
Earnings per share (Tables)	Jun. 30, 2020
Earnings per share
Schedule of earnings per share	2020 2019 For the Three Months Ended June 30, Basic Diluted Basic Diluted Net Income $ 7,576 $ 7,576 $ 7,144 $ 7,144 Average common shares outstanding 7,341,636 7,376,700 7,399,302 7,413,114 Earnings per share $ 1.03 $ 1.03 $ 0.96 $ 0.96 2020 2019 For the Six Months Ended June 30 Basic Diluted Basic Diluted Net income $ 12,857 $ 12,857 $ 13,556 $ 13,556 Average common shares outstanding 7,360,517 7,391,202 7,399,178 7,410,558 Earnings per share $ 1.75 $ 1.74 $ 1.83 $ 1.83

Investment securities (Tables)

Investment securities (Tables)	6 Months Ended
Investment securities (Tables)	Jun. 30, 2020
Schedule of amortized cost and fair value of investment securities aggregated by investment category	Gross Gross Amortized Unrealized Unrealized Fair June 30, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 21,473 $ 604 $ 22,077 U.S. government-sponsored enterprises 79,473 1,628 81,101 State and municipals: Taxable 31,694 1,467 33,161 Tax-exempt 35,617 2,408 38,025 Residential mortgage-backed securities: U.S. government agencies 5,717 154 $ 4 5,867 U.S. government-sponsored enterprises 89,787 4,057 7 93,837 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,657 984 13,641 Total $ 276,418 $ 11,302 $ 11 $ 287,709 Held-to-maturity: Tax-exempt state and municipals $ 6,850 $ 294 $ $ 7,144 Residential mortgage-backed securities: U.S. government agencies 26 26 U.S. government-sponsored enterprises 525 22 547 Total $ 7,401 $ 316 $ $ 7,717 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 June 30, 2020 Value Losses Value Losses Value Losses Residential mortgage-backed securities: U.S. government agencies $ 747 $ 2 $ 571 $ 2 $ 1,318 $ 4 U.S. government-sponsored enterprises 1,197 4 561 3 1,758 7 Total $ 1,944 $ 6 $ 1,132 $ 5 $ 3,076 $ 11 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	Three Months Ended June 30, 2020 2019 Net gain (loss) recognized during the period on equity securities $ 39 $ (9) Less: Net gains recognized during the period on equity securities sold during the period Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ 39 $ (9) For the Six Months Ended June 30, 2020 2019 Net loss recognized during the period on equity securities $ (84) $ (8) Less: Net gains (loss) recognized during the period on equity securities sold during the period Unrealized loss recognized during the reporting period on equity securities still held at the reporting date $ (84) $ (8)
Available-for-Sale Securities.
Schedule of maturity distribution of fair value	Fair June 30, 2020 Value Within one year $ 34,156 After one but within five years 76,757 After five but within ten years 19,411 After ten years 40,631 170,955 Mortgage-backed and other amortizing securities 116,754 Total $ 287,709
Held-to-maturity Securities.
Schedule of maturity distribution of fair value	Amortized Fair June 30, 2020 Cost Value After ten years $ 6,850 $ 7,144 6,850 7,144 Mortgage-backed securities 551 573 Total $ 7,401 $ 7,717

Loans, net and allowance for _2

Loans, net and allowance for loan losses (Tables)	6 Months Ended
Loans, net and allowance for loan losses (Tables)	Jun. 30, 2020
Loans, net and allowance for loan losses
Schedule of major classifications of loans outstanding	June 30, 2020 December 31, 2019 Commercial $ 694,551 $ 522,957 Real estate: Commercial 1,099,818 1,011,423 Residential 297,880 301,378 Consumer 89,660 102,482 Total $ 2,181,909 $ 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 and six months ended June 30, 2020 and 2019 are summarized as follows: Real estate June 30, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance April 1, 2020 $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Charge-offs (335) (47) (81) (154) (617) Recoveries 31 3 54 88 Provisions 822 895 21 62 1,800 Ending balance $ 8,487 $ 13,855 $ 3,567 $ 1,048 $ 26,957 Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance April 1, 2019 $ 5,955 $ 11,074 $ 3,880 $ 1,196 $ 22,105 Charge-offs (10) (343) (143) (80) (576) Recoveries 2 12 37 51 Provisions 195 311 (134) (22) 350 Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 Real estate June 30, 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 (985) (47) (135) (248) (1,415) Recoveries 298 13 84 395 Provisions 2,286 2,406 463 145 5,300 Ending balance $ 8,487 $ 13,855 $ 3,567 $ 1,048 $ 26,957 Real estate June 30, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2019 $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Charge-offs (87) (349) (302) (212) (950) Recoveries 10 16 75 101 Provisions 703 655 9 33 1,400 Ending balance $ 6,142 $ 11,042 $ 3,615 $ 1,131 $ 21,930 The Company's allowance for loan losses increased $4.3 million or 18.9% in 2020, due largely to the adjustment of qualitative factors in our allowance for loan losses methodology, which reflect current economic decline 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 June 30, 2020 and December 31, 2019 is summarized as follows: Real estate June 30, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 8,487 $ 13,855 $ 3,567 $ 1,048 $ 26,957 Ending balance: individually evaluated for impairment 1,339 239 163 1,741 Ending balance: collectively evaluated for impairment $ 7,148 $ 13,616 $ 3,404 $ 1,048 $ 25,216 Loans receivable: Ending balance $ 694,551 $ 1,099,818 $ 297,880 $ 89,660 $ 2,181,909 Ending balance: individually evaluated for impairment 5,408 4,490 1,925 160 11,983 Ending balance: collectively evaluated for impairment $ 689,143 $ 1,095,328 $ 295,955 $ 89,500 $ 2,169,926 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 June 30, 2020 Pass Mention Substandard Doubtful Total Commercial $ 677,234 $ 10,915 $ 6,402 $ $ 694,551 Real estate: Commercial 1,083,864 6,606 9,348 1,099,818 Residential 294,627 3,253 297,880 Consumer 89,483 177 89,660 Total $ 2,145,208 $ 17,521 $ 19,180 $ $ 2,181,909 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	June 30, 2020 December 31, 2019 Commercial $ 5,443 $ 3,336 Real estate: Commercial 3,109 2,765 Residential 1,135 1,148 Consumer 160 261 Total $ 9,847 $ 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 June 30, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 329 $ 351 $ 5,468 $ 6,148 $ 688,403 $ 694,551 $ 25 Real estate: Commercial 575 234 3,149 3,958 1,095,860 1,099,818 40 Residential 80 150 1,361 1,591 296,289 297,880 226 Consumer 229 66 160 455 89,205 89,660 Total $ 1,213 $ 801 $ 10,138 $ 12,152 $ 2,169,757 $ 2,181,909 $ 291 The increase in the greater than 90 day category was due to an increase in nonaccrual loans which are included in the category. large commercial loans were added to non-accrual. All 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	This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2020 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 2,921 $ 3,480 $ 3,314 $ 9 $ 3,422 $ 25 Real estate: Commercial 2,042 2,606 2,153 17 2,074 22 Residential 1,115 1,273 1,122 5 1,321 10 Consumer 160 178 181 207 Total 6,238 7,537 6,770 31 7,024 57 With an allowance recorded: Commercial 2,487 2,516 1,339 2,222 1,821 6 Real estate: Commercial 2,448 2,774 239 1,856 1,614 Residential 810 878 163 758 3 650 7 Consumer Total 5,745 6,168 1,741 4,836 3 4,085 13 Total impaired loans Commercial 5,408 5,996 1,339 5,536 9 5,243 31 Real estate: Commercial 4,490 5,380 239 4,009 17 3,688 22 Residential 1,925 2,151 163 1,880 8 1,971 17 Consumer 160 178 181 207 Total $ 11,983 $ 13,705 $ 1,741 $ 11,606 $ 34 $ 11,109 $ 70 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 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income June 30, 2019 Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 4,495 $ 4,931 $ 5,284 $ 17 $ 4,043 $ 34 Real estate: Commercial 2,957 3,116 2,528 10 2,341 23 Residential 619 888 740 4 1,150 11 Consumer 251 261 245 214 Total 8,322 9,196 8,797 31 7,748 68 With an allowance recorded: Commercial 1,420 1,432 $ 615 1,180 5 1,012 12 Real estate: Commercial 910 1,380 216 1,174 5 1,166 10 Residential 1,661 1,740 295 1,848 7 1,932 18 Consumer 20 Total 3,991 4,552 1,126 4,202 17 4,130 40 Total impaired loans Commercial 5,915 6,363 615 6,464 22 5,055 46 Real estate: Commercial 3,867 4,496 216 3,702 15 3,507 33 Residential 2,280 2,628 295 2,588 11 3,082 29 Consumer 251 261 245 234 Total $ 12,313 $ 13,748 $ 1,126 $ 12,999 $ 48 $ 11,878 $ 108
Summary loans whose terms have been modified resulting in troubled debt restructurings	2020 For the Three Months Ended June 30, For the Six Months Ended June 30, Pre-Modification Post-Modification Pre-Modification Post-Modification Number Recorded Recorded Number Recorded Recored of Loans Investment Investment of Loans Investment Investment Commercial real estate 3 $ 1,073 $ 1,073 3 $ 1,073 $ 1,073 Commercial and industrial 1 12 12 1 12 12 Total 4 $ 1,085 $ 1,085 4 $ 1,085 $ 1,085 2019 For the Three Months Ended June 30, For the Six Months Ended June 30, Pre-Modification Post-Modification Pre-Modification Post-Modification Number Recorded Recorded Number Recorded Recored of Loans Investment Investment of Loans Investment Investment Commercial real estate 1 $ 340 $ 300 Total $ $ 1 $ 340 $ 300
Schedule of payment deferrals granted on commercial loans	NAICS category Number of Loans Balance Percentage of Total Loan Portfolio Percentage of Tier 1 Capital (Bank) Lessors of Nonresidential Buildings 65 $ 71,899 3.3 % 26.9 % Lessors of Residential Buildings and Dwellings 64 53,564 2.5 19.9 Hotels and Motels 27 39,261 1.8 14.5 Full-Service Restaurants 33 27,783 1.3 10.3 Limited-Service Restaurants 8 11,829 0.5 4.4 Gasoline Stations with Convenience Stores 18 12,422 0.6 4.6 Construction and Mining 13 9,718 0.4 3.6 Assisted Living Facilities for the Elderly 2 6,319 0.3 2.3 Colleges, Universities, and Professional Schools 1 6,301 0.3 2.3 All Others 248 67,674 3.1 24.9 479 $ 306,770 14.1 % 113.7 %

Other assets (Tables)

Other assets (Tables)	6 Months Ended
Other assets (Tables)	Jun. 30, 2020
Other assets
Schedule of components of other assets	June 30, 2020 December 31, 2019 Other real estate owned $ 964 $ 450 Investment in low income housing partnership 6,639 6,901 Mortgage servicing rights 772 738 Bank owned life insurance 35,412 35,041 Restricted equity securities (FHLB and other) 5,353 10,201 Net deferred tax asset 1,272 3,362 Interest rate floor 2,019 944 Interest rate swaps 15,985 4,728 Other assets 6,362 6,855 Total $ 74,778 $ 69,220

Fair value estimates (Tables)

Fair value estimates (Tables)	6 Months Ended
Fair value estimates (Tables)	Jun. 30, 2020
Fair value estimates
Schedule of assets and liabilities measured at fair value on a recurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs June 30, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 22,077 $ 22,077 $ U.S. government-sponsored enterprises 81,101 $ 81,101 State and municipals: Taxable 33,161 33,161 Tax-exempt 38,025 38,025 Mortgage-backed securities: U.S. government agencies 5,867 5,867 U.S. government-sponsored enterprises 107,478 107,478 Common equity securities 338 338 Loan held for sale 1,939 1,939 Interest rate floor-other assets 2,019 2,019 Interest rate swap-other assets 15,912 15,912 Interest rate swap-other liabilities (16,005) (16,005) Total $ 291,912 $ 22,415 $ 269,497 $ 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 June 30, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 4,004 $ 4,004 Other real estate owned $ 588 $ 588 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 June 30, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 4,004 Appraisal of collateral Appraisal adjustments 5.0% to 97.0% (57.2)% Liquidation expenses 3.0% to 6.0% (5.6)% Other real estate owned $ 588 Appraisal of collateral Appraisal adjustments 18.4% to 63.5% (40.6)% 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 June 30, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 51,934 $ 51,934 $ 51,934 Investment securities: Available-for-sale 287,709 287,709 22,077 $ 265,632 Common equity securities 338 338 338 Held-to-maturity 7,401 7,717 7,717 Loans held for sale 1,939 1,939 1,939 Net loans 2,154,952 2,132,783 $ 2,132,783 Accrued interest receivable 8,368 8,368 8,368 Mortgage servicing rights 772 1,359 1,359 Restricted equity securities (FHLB and other) 5,353 5,353 5,353 Interest rate floor 2,019 2,019 2,019 Interest rate swaps 15,912 15,912 15,912 Total $ 2,536,697 $ 2,515,431 Financial liabilities: Deposits $ 2,210,124 $ 2,214,974 $ 2,214,974 Long-term debt 60,938 61,453 61,453 Subordinated debentures 33,000 33,201 33,201 Accrued interest payable 872 872 872 Interest rate swaps 16,005 16,005 16,005 Total $ 2,320,939 $ 2,326,505 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 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)	6 Months Ended
Employee benefit plans (Tables)	Jun. 30, 2020
Employee benefit plans
Schedule of components of net periodic benefit cost	Pension Benefits Three Months Ended June 30, 2020 2019 Components of net periodic pension benefit: Interest cost $ 163 $ 192 Expected return on plan assets (371) (325) Amortization of unrecognized net gain 65 68 Net periodic benefit $ (143) $ (65) Pension Benefits Six Months Ended June 30, 2020 2019 Components of net periodic pension cost: Interest cost $ 217 $ 320 Expected return on plan assets (494) (542) Amortization of unrecognized net gain 87 113 Net periodic benefit cost $ (190) $ (109)

Derivatives and hedging activ_2

Derivatives and hedging activities (Tables)	6 Months Ended
Derivatives and hedging activities (Tables)	Jun. 30, 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 June 30, 2020 As of December 31, 2019 (1) As of June 30, 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 $ 2,019 Other Assets $ 944 Cash Flow Swap $ 50,000 Other Liabilities 510 Total derivatives designated as hedging instruments $ 2,019 $ 944 510 Derivatives not Interest Rate Swaps (3) $ 254,598 Other Assets $ 15,912 Other Assets $ 4,728 Other Liabilities $ 16,005 Other Liabilities $ 4,680 Total derivatives not $ 15,912 $ 4,728 $ 16,005 $ 4,680 (1) Assets amount does not include accrued interest receivable of $195 . (2) Liabilities amount does not include accrued interest payable of $195 . (3) Notional amount of interest rate swaps at June 30, 2019 $123,351 .
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 June 30, 2020 Income June 30, 2020 Derivatives in Cash Flow Hedging Relationships Cash Flow Swap $ (510) $ (510) $ Interest Expense $ 73 $ 73 $ Interest Rate Floor () $ 150 $ 151 $ (1) Interest Income $ 110 $ 126 $ (16) Total $ (360) $ (359) $ (1) $ 183 $ 199 $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships June 30, 2019 Income June 30, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor () $ 474 $ 827 $ (353) Interest Income $ (31) $ $ (31) * Amounts disclosed are gross and not net of taxes.
Schedule of effect of derivative financial instruments on Income Statement	Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2020 2020 2019 2019 Interest Income Interest Expense Interest Income Interest Expense 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 $ 110 $ 73 $ (31) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 110 $ 73 $ (31) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component 126 $ 73 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (31)
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Loss Amount of Loss Amount of Loss Amount of Loss Recognized in Recognized in Recognized in Recognized in Location of Gain or (Loss) Income Income Income Income Recognized in Income on Three Months Ended Six Months Ended Three Months Ended Six Months Ended Derivatives Not Designated as Hedging Instruments Derivative June 30, 2020 June 30, 2020 June 30, 2019 June 30, 2019 Interest Rate Swaps Other non-interest income $ (10) $ (141) $ (236) $ (346) Fee Income Other income $ 259 $ 860 $ 744 $ 1,136
Schedule of offsetting derivatives	Offsetting of Derivative Assets as of June 30, 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 $ 17,930 $ $ 17,930 $ $ 17,930 Offsetting of Derivative Liabilities as of June 30, 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 $ 16,515 $ $ 16,515 $ $ 16,515 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)	6 Months Ended
Deposits (Tables)	Jun. 30, 2020
Deposits.
Summary of major components of interest-bearing and noninterest-bearing deposits	At the period end June 30, 2020 December 31, 2019 Interest-bearing deposits: Money market accounts $ 434,628 $ 365,463 Now accounts 440,202 402,999 Savings accounts 404,040 370,270 Time deposits less than $250 251,121 231,450 Time deposits $250 or more 104,927 138,069 Total interest-bearing deposits 1,634,918 1,508,251 Noninterest-bearing deposits 575,206 463,238 Total deposits $ 2,210,124 $ 1,971,489

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
Borrowings (Tables)	Jun. 30, 2020
Borrowings
Summary of short-term borrowings	At and for the six months ended June 30, 2020 Weighted Maximum Weighted Average Ending Average Month-End Average Rate at Balance Balance Balance Rate June 30, 2020 FHLB advances $ 50,000 $ 117,784 $ 164,150 1.15 % 0.67 % 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 June 30, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 June 2020 2.22 6,000 December 2020 1.84 $ 5,000 5,000 June 2021 1.99 10,000 10,000 April 2022 0.35 40,175 March 2023 4.69 5,763 6,733 $ 60,938 $ 32,733
Schedule of maturities of long-term debt	2020 $ 5,992 2021 12,058 2022 42,333 2023 555 $ 60,938

Summary of significant accoun_3

Summary of significant accounting policies (Details) $ in Thousands	1 Months Ended		3 Months Ended		4 Months Ended	6 Months Ended
	Jul. 31, 2020USD ($)customer	Mar. 31, 2020USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jul. 31, 2020USD ($)item	Jun. 30, 2020USD ($)customerOffice	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Number of full-service community banking offices \| Office						26
Commercial loan and commercial real estate portfolio deemed non-life sustaining		$ 1,200,000
Commercial loan and commercial real estate portfolio deemed non-life sustaining percentage		73.00%
Provision for loan losses			$ 1,800	$ 350		$ 5,300	$ 1,400
Maximum loan receivable deferred period	6 months					6 months
Loan receivable balances where payment deferrals were granted	$ 330,135		330,119		$ 330,135	$ 330,119
Interest and fees on loans			700
PPP loan applications number \| item					1,417
PPP total loan amount	216,200				$ 216,200
PPP average loan amount	$ 153				153
SBA processing fees					6,900	6,600
Goodwill			63,370			$ 63,370		$ 63,370
Commercial loans
Number of business loans with payment deferrals granted \| customer	481					479
Loan receivable balances where payment deferrals were granted	$ 306,900		306,770		306,900	$ 306,770
Consumer Loan
Number of business loans with payment deferrals granted \| customer	505					512
Loan receivable balances where payment deferrals were granted	$ 23,300		$ 23,349		$ 23,300	$ 23,349

Other comprehensive income (l_3

Other comprehensive income (loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Other comprehensive income (loss)
Net unrealized gain on investment securities available-for-sale	$ 11,291	$ 1,835
Income tax	2,371	385
Net of income taxes	8,920	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	1,180	687
Income tax	248	144
Net of income taxes	932	543
Accumulated other comprehensive income (loss)	$ 4,654	$ (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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings per share
Net income, Basic	$ 7,576	$ 7,144	$ 12,857	$ 13,556
Average common shares outstanding, Basic	7,341,636	7,399,302	7,360,517	7,399,178
Earnings per share, Basic	$ 1.03	$ 0.96	$ 1.75	$ 1.83
Net income, Diluted			$ 12,857	$ 13,556
Average common shares outstanding, Diluted	7,376,700	7,413,114	7,391,202	7,410,558
Earnings per share, Diluted	$ 1.03	$ 0.96	$ 1.74	$ 1.83

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) $ in Thousands	Jun. 30, 2020USD ($)company	Dec. 31, 2019USD ($)
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	$ 276,418	$ 328,643
Available-for-sale, Gross Unrealized Gains	11,302	2,988
Available-for-sale, Gross Unrealized Losses	11	1,153
Available-for-sale, Fair Value	287,709	330,478
Held-to-maturity, Amortized Cost	7,401	7,656
Held-to-maturity, Gross Unrealized Gains	316	233
Held-to-maturity, Fair value	7,717	7,889
Equity investments carried at fair value	$ 338	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	$ 61
Mortgage-backed Securities, U.S. government agencies
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	5,717	8,368
Available-for-sale, Gross Unrealized Gains	154	112
Available-for-sale, Gross Unrealized Losses	4	10
Available-for-sale, Fair Value	5,867	8,470
Held-to-maturity, Amortized Cost	26	31
Held-to-maturity, Fair value	26	31
Mortgage-backed Securities, U.S. government-sponsored enterprises
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	89,787	101,914
Available-for-sale, Gross Unrealized Gains	4,057	1,011
Available-for-sale, Gross Unrealized Losses	7	77
Available-for-sale, Fair Value	93,837	102,848
Held-to-maturity, Amortized Cost	525	773
Held-to-maturity, Gross Unrealized Gains	22	25
Held-to-maturity, Fair value	547	798
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	12,657	12,694
Available-for-sale, Gross Unrealized Gains	984	171
Available-for-sale, Gross Unrealized Losses		4
Available-for-sale, Fair Value	13,641	12,861
U.S. government-sponsored enterprises state and municipals
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	79,473	87,156
Available-for-sale, Gross Unrealized Gains	1,628	181
Available-for-sale, Gross Unrealized Losses		227
Available-for-sale, Fair Value	81,101	87,110
U.S. Treasuries
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	21,473	23,966
Available-for-sale, Gross Unrealized Gains	604	162
Available-for-sale, Fair Value	22,077	24,128
Common equity securities.
Schedule of Trading Securities and Other Trading Assets
Equity investments carried at fair value	338	423
State and Municipals, Taxable
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	31,694	35,418
Available-for-sale, Gross Unrealized Gains	1,467	295
Available-for-sale, Gross Unrealized Losses		815
Available-for-sale, Fair Value	33,161	34,898
State and Municipals, Tax-exempt
Schedule of Trading Securities and Other Trading Assets
Available-for-sale, Amortized Cost	35,617	59,127
Available-for-sale, Gross Unrealized Gains	2,408	1,056
Available-for-sale, Gross Unrealized Losses		20
Available-for-sale, Fair Value	38,025	60,163
Held-to-maturity, Amortized Cost	6,850	6,852
Held-to-maturity, Gross Unrealized Gains	294	208
Held-to-maturity, Fair value	$ 7,144	$ 7,060

Investment securities - Unreali

Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Investment securities
Net gain (loss) recognized during the period on equity securities	$ 39	$ (9)	$ (84)	$ (8)
Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date	$ 39	$ (9)	$ (84)	$ (8)

Investment securities - Restric

Investment securities - Restricted Investment In Stock (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)security	Jun. 30, 2019USD ($)
Available-for-sale and Held-to-maturity securities
Proceeds from sales of investment securities available-for-sale			$ 26,502	$ 9,677
Number of securities in continuous unrealized loss position \| security			15
Other-than-temporary impairments recognized			$ 0
U.S. government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Other-than-temporary impairments recognized	$ 0	$ 0	$ 0	$ 0
Mortgage-backed Securities, U.S. government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Number of securities in continuous unrealized loss positions 12 months or longer \| security			8

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Investment securities
Within one year	$ 34,156
After one but within five years	76,757
After five but within ten years	19,411
After ten years	40,631
Available for sale securities	170,955
Mortgage-backed securities	116,754
Total	$ 287,709	$ 330,478

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After ten years, Held to maturity	$ 6,850
Amortized Cost, Held to maturity	6,850
Amortized Cost, Mortgage-backed securities, Held to maturity	551
Held-to-maturity, Amortized Cost	7,401	$ 7,656
Fair Value of Held-to-maturity Securities
Fair Value, After ten years, Held to maturity	7,144
Fair Value, Held to maturity	7,144
Fair Value, Mortgage-backed securities, Held to maturity	573
Held to maturity, Fair Value	$ 7,717	$ 7,889

Investment securities - Pledged

Investment securities - Pledged Securities (Details) - USD ($) $ in Thousands	Jun. 30, 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	$ 131,913	$ 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	Jun. 30, 2020	Dec. 31, 2019
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	$ 1,944	$ 78,239
12 Months or More, Fair Value	1,132	43,281
Less Than 12 Months, Unrealized Losses	6	1,035
12 Months or More, Unrealized Losses	5	118
Total, Fair Value	3,076	121,520
Total, Unrealized Losses	11	1,153
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		23,929
Less Than 12 Months, Unrealized Losses		815
Total, Fair Value		23,929
Total, Unrealized Losses		815
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value		2,684
12 Months or More, Fair Value		1,098
Less Than 12 Months, Unrealized Losses		19
12 Months or More, Unrealized Losses		1
Total, Fair Value		3,782
Total, Unrealized Losses		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	747	992
12 Months or More, Fair Value	571	2,362
Less Than 12 Months, Unrealized Losses	2	1
12 Months or More, Unrealized Losses	2	9
Total, Fair Value	1,318	3,354
Total, Unrealized Losses	4	10
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Fair Value	1,197
12 Months or More, Fair Value	561
Less Than 12 Months, Unrealized Losses	4
12 Months or More, Unrealized Losses	3
Total, Fair Value	1,758
Total, Unrealized Losses	$ 7
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	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)shares	Dec. 31, 2019USD ($)
Value of common stock	$ 14,649	$ 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	5,311	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	4 Months Ended	6 Months Ended
	Jul. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Net deferred loan costs		$ 3,508	$ 908
Loans		2,181,909	1,938,240
SBA processing fees	$ 6,900	6,600
Commercial
Loans		694,551	522,957
Real estate Commercial
Loans		1,099,818	1,011,423
Real estate Residential
Loans		297,880	301,378
Real estate Residential
Loans		297,880	301,378
Consumer
Loans		89,660	$ 102,482
PPP
Loans		$ 201,274

Loans, net and allowance for _4

Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable
Loans	$ 2,181,909	$ 1,938,240
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	694,551	522,957
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	1,099,818	1,011,423
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	297,880	301,378
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	$ 89,660	$ 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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Dec. 31, 2019
Allowance for loan losses:
Beginning Balance	$ 25,686	$ 22,105	$ 22,677	$ 21,379
Charge-offs	(617)	(576)	(1,415)	(950)
Recoveries	88	51	395	101
Provisions	1,800	350	5,300	1,400
Ending balance	26,957	21,930	26,957	21,930
Beginning Balance	25,686	22,105	22,677	21,379
Ending balance: individually evaluated for impairment					$ 1,741	$ 777
Charge-offs	(617)	(576)	(1,415)	(950)
Ending balance: collectively evaluated for impairment					25,216	21,900
Recoveries	88	51	395	101
Ending balance: loans acquired with deteriorated credit quality	26,957	21,930	22,677	21,379	26,957	22,677
Provisions	1,800	350	$ 5,300	1,400
Allowance for credit losses increase (decrease)	4,300
Allowance for credit losses increase (decrease) percentage			18.90%
Loans receivable:
Total Loans					2,181,909	1,938,240
Ending balance: individually evaluated for impairment					11,983	10,120
Ending balance: collectively evaluated for impairment					2,169,926	1,928,120
Total Loans					2,181,909	1,938,240
Ending balance	26,957	21,930	$ 26,957	21,930
Ending balance: individually evaluated for impairment					11,983	10,120
Ending balance: collectively evaluated for impairment					2,169,926	1,928,120
Commercial
Allowance for loan losses:
Beginning Balance	7,969	5,955	6,888	5,516
Charge-offs	(335)	(10)	(985)	(87)
Recoveries	31	2	298	10
Provisions	822	195	2,286	703
Ending balance	8,487	6,142	8,487	6,142
Beginning Balance	7,969	5,955	6,888	5,516
Ending balance: individually evaluated for impairment					1,339	363
Charge-offs	(335)	(10)	(985)	(87)
Ending balance: collectively evaluated for impairment					7,148	6,525
Recoveries	31	2	298	10
Ending balance: loans acquired with deteriorated credit quality	8,487	6,142	6,888	5,516	8,487	6,888
Provisions	822	195	2,286	703
Loans receivable:
Total Loans					694,551	522,957
Ending balance: individually evaluated for impairment					5,408	4,658
Ending balance: collectively evaluated for impairment					689,143	518,299
Total Loans					694,551	522,957
Ending balance	8,487	6,142	8,487	6,142
Ending balance: individually evaluated for impairment					5,408	4,658
Ending balance: collectively evaluated for impairment					689,143	518,299
Real estate Commercial
Allowance for loan losses:
Beginning Balance	13,007	11,074	11,496	10,736
Charge-offs	(47)	(343)	(47)	(349)
Provisions	895	311	2,406	655
Ending balance	13,855	11,042	13,855	11,042
Beginning Balance	13,007	11,074	11,496	10,736
Ending balance: individually evaluated for impairment					239	279
Charge-offs	(47)	(343)	(47)	(349)
Ending balance: collectively evaluated for impairment					13,616	11,217
Ending balance: loans acquired with deteriorated credit quality	13,855	11,042	11,496	10,736	13,855	11,496
Provisions	895	311	2,406	655
Loans receivable:
Total Loans					1,099,818	1,011,423
Ending balance: individually evaluated for impairment					4,490	3,048
Ending balance: collectively evaluated for impairment					1,095,328	1,008,375
Total Loans					1,099,818	1,011,423
Ending balance	13,855	11,042	13,855	11,042
Ending balance: individually evaluated for impairment					4,490	3,048
Ending balance: collectively evaluated for impairment					1,095,328	1,008,375
Real estate Residential
Allowance for loan losses:
Beginning Balance	3,624	3,880	3,226	3,892
Charge-offs	(81)	(143)	(135)	(302)
Recoveries	3	12	13	16
Provisions	21	(134)	463	9
Ending balance	3,567	3,615	3,567	3,615
Beginning Balance	3,624	3,880	3,226	3,892
Ending balance: individually evaluated for impairment					163	135
Charge-offs	(81)	(143)	(135)	(302)
Ending balance: collectively evaluated for impairment					3,404	3,091
Recoveries	3	12	13	16
Ending balance: loans acquired with deteriorated credit quality	3,567	3,615	3,226	3,892	3,567	3,226
Provisions	21	(134)	463	9
Loans receivable:
Total Loans					297,880	301,378
Ending balance: individually evaluated for impairment					1,925	2,153
Ending balance: collectively evaluated for impairment					295,955	299,225
Total Loans					297,880	301,378
Ending balance	3,567	3,615	3,567	3,615
Ending balance: individually evaluated for impairment					1,925	2,153
Ending balance: collectively evaluated for impairment					295,955	299,225
Real estate Residential
Loans receivable:
Total Loans					297,880	301,378
Total Loans					297,880	301,378
Consumer
Allowance for loan losses:
Beginning Balance	1,086	1,196	1,067	1,235
Charge-offs	(154)	(80)	(248)	(212)
Recoveries	54	37	84	75
Provisions	62	(22)	145	33
Ending balance	1,048	1,131	1,048	1,131
Beginning Balance	1,086	1,196	1,067	1,235
Charge-offs	(154)	(80)	(248)	(212)
Ending balance: collectively evaluated for impairment					1,048	1,067
Recoveries	54	37	84	75
Ending balance: loans acquired with deteriorated credit quality	1,048	1,131	1,067	1,235	1,048	1,067
Provisions	62	(22)	145	33
Loans receivable:
Total Loans					89,660	102,482
Ending balance: individually evaluated for impairment					160	261
Ending balance: collectively evaluated for impairment					89,500	102,221
Total Loans					89,660	102,482
Ending balance	$ 1,048	$ 1,131	$ 1,048	$ 1,131
Ending balance: individually evaluated for impairment					160	261
Ending balance: collectively evaluated for impairment					$ 89,500	$ 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	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Allowance for loan losses:
Ending balance	$ 26,957	$ 25,686	$ 22,677	$ 21,930	$ 22,105	$ 21,379
Ending balance: individually evaluated for impairment	1,741		777
Ending balance: collectively evaluated for impairment	25,216		21,900
Loans receivable:
Ending balance	2,181,909		1,938,240
Ending balance: individually evaluated for impairment	11,983		10,120
Ending balance: collectively evaluated for impairment	2,169,926		1,928,120
Commercial
Allowance for loan losses:
Ending balance	8,487	7,969	6,888	6,142	5,955	5,516
Ending balance: individually evaluated for impairment	1,339		363
Ending balance: collectively evaluated for impairment	7,148		6,525
Loans receivable:
Ending balance	694,551		522,957
Ending balance: individually evaluated for impairment	5,408		4,658
Ending balance: collectively evaluated for impairment	689,143		518,299
Real estate Commercial
Allowance for loan losses:
Ending balance	13,855	13,007	11,496	11,042	11,074	10,736
Ending balance: individually evaluated for impairment	239		279
Ending balance: collectively evaluated for impairment	13,616		11,217
Loans receivable:
Ending balance	1,099,818		1,011,423
Ending balance: individually evaluated for impairment	4,490		3,048
Ending balance: collectively evaluated for impairment	1,095,328		1,008,375
Real estate Residential
Allowance for loan losses:
Ending balance	3,567	3,624	3,226	3,615	3,880	3,892
Ending balance: individually evaluated for impairment	163		135
Ending balance: collectively evaluated for impairment	3,404		3,091
Loans receivable:
Ending balance	297,880		301,378
Ending balance: individually evaluated for impairment	1,925		2,153
Ending balance: collectively evaluated for impairment	295,955		299,225
Consumer
Allowance for loan losses:
Ending balance	1,048	$ 1,086	1,067	$ 1,131	$ 1,196	$ 1,235
Ending balance: collectively evaluated for impairment	1,048		1,067
Loans receivable:
Ending balance	89,660		102,482
Ending balance: individually evaluated for impairment	160		261
Ending balance: collectively evaluated for impairment	$ 89,500		$ 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	Jun. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable
Loans	$ 2,181,909	$ 1,938,240
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	694,551	522,957
Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	1,099,818	1,011,423
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	297,880	301,378
Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	297,880	301,378
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	89,660	102,482
Pass
Accounts, Notes, Loans and Financing Receivable
Loans	2,145,208	1,908,233
Pass \| Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	677,234	513,994
Pass \| Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	1,083,864	993,645
Pass \| Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	294,627	298,449
Pass \| Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	89,483	102,145
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans	17,521	6,942
Special Mention \| Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	10,915	3,837
Special Mention \| Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	6,606	2,508
Special Mention \| Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans		597
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans	19,180	23,065
Substandard \| Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	6,402	5,126
Substandard \| Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	9,348	15,270
Substandard \| Real estate Residential
Accounts, Notes, Loans and Financing Receivable
Loans	3,253	2,332
Substandard \| Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	$ 177	$ 337

Loans, net and allowance for _8

Loans, net and allowance for loan losses - Reclassification of Commercial Credits Category (Details) $ in Millions	6 Months Ended
	Jun. 30, 2020USD ($)loan
Commercial
Accounts, Notes, Loans and Financing Receivable
Change in category	$ 2.1
Special Mention \| Real estate Commercial
Accounts, Notes, Loans and Financing Receivable
Number of loans reclassified \| loan	1
Change in category	$ 3.8
Special Mention \| Commercial
Accounts, Notes, Loans and Financing Receivable
Number of loans reclassified \| loan	2
Change in category	$ 6.8
Substandard \| Real estate Commercial
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	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 9,847	$ 7,510
Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	5,443	3,336
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	3,109	2,765
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	1,135	1,148
Consumer
Financing Receivable, Recorded Investment, Past Due
Nonaccrual loans, Total	$ 160	$ 261

Loans, net and allowance for_10

Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 31, 2020USD ($)customer	Jun. 30, 2020USD ($)loancustomer	Dec. 31, 2019USD ($)
Financing Receivable, Recorded Investment, Past Due
Total Past Due		$ 12,152	$ 12,801
Current		2,169,757	1,925,439
Total Loans		2,181,909	1,938,240
Loans > 90 Days and Accruing		$ 291	378
Maximum loan receivable deferred period	6 months	6 months
Loan receivable balances where payment deferrals were granted	$ 330,135	$ 330,119
Commercial loans
Financing Receivable, Recorded Investment, Past Due
Number of business loans with payment deferrals granted \| customer	481	479
Loan receivable balances where payment deferrals were granted	$ 306,900	$ 306,770
Consumer Loan
Financing Receivable, Recorded Investment, Past Due
Number of business loans with payment deferrals granted \| customer	505	512
Loan receivable balances where payment deferrals were granted	$ 23,300	$ 23,349
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		1,213	3,688
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		801	1,525
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due		10,138	7,588
Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due		6,148	3,111
Current		688,403	519,846
Total Loans		694,551	522,957
Loans > 90 Days and Accruing		$ 25
Loans added to non-accrual \| loan		3
Loans individually evaluated for impairment \| loan		3
Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		$ 329	75
Commercial \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		351
Commercial \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due		5,468	3,036
Real estate Commercial
Financing Receivable, Recorded Investment, Past Due
Total Past Due		3,958	3,866
Current		1,095,860	1,007,557
Total Loans		1,099,818	1,011,423
Loans > 90 Days and Accruing		40
Real estate Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		575	926
Real estate Commercial \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		234	175
Real estate Commercial \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due		3,149	2,765
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Loans		297,880	301,378
Real estate Residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due		1,591	4,917
Current		296,289	296,461
Total Loans		297,880	301,378
Loans > 90 Days and Accruing		226	378
Real estate Residential \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		80	2,164
Real estate Residential \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		150	1,227
Real estate Residential \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due		1,361	1,526
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due		455	907
Current		89,205	101,575
Total Loans		89,660	102,482
Consumer \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		229	523
Consumer \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		66	123
Consumer \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due
Total Past Due		$ 160	$ 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		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 6,238	$ 8,322	$ 6,238	$ 8,322	$ 7,535
Unpaid Principal Balance, With no related allowance, Total	7,537	9,196	7,537	9,196	8,714
Average Recorded Investment, With no related allowance, Total	6,770	8,797	7,024	7,748	7,887
Interest Income Recognized, With no related allowance, Total	31	31	57	68	126
Recorded Investment, With an allowance recorded, Total	5,745	3,991	5,745	3,991	2,585
Unpaid Principal Balance, With an allowance recorded, Total	6,168	4,552	6,168	4,552	3,299
Related Allowance, With an allowance recorded, Total	1,741	1,126	1,741	1,126	777
Average Recorded Investment, With an allowance recorded, Total	4,836	4,202	4,085	4,130	3,490
Interest Income Recognized, With an allowance recorded, Total	3	17	13	40	71
Recorded Investment, Total	11,983	12,313	11,983	12,313	10,120
Unpaid Principal Balance, Total	13,705	13,748	13,705	13,748	12,013
Related Allowance, With an allowance recorded, Total	1,741	1,126	1,741	1,126	777
Average Recorded Investment, Total	11,606	12,999	11,109	11,878	11,377
Interest Income Recognized, Total	34	48	70	108	197
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,921	4,495	2,921	4,495	3,638
Unpaid Principal Balance, With no related allowance, Total	3,480	4,931	3,480	4,931	4,175
Average Recorded Investment, With no related allowance, Total	3,314	5,284	3,422	4,043	3,907
Interest Income Recognized, With no related allowance, Total	9	17	25	34	63
Recorded Investment, With an allowance recorded, Total	2,487	1,420	2,487	1,420	1,020
Unpaid Principal Balance, With an allowance recorded, Total	2,516	1,432	2,516	1,432	1,038
Related Allowance, With an allowance recorded, Total	1,339	615	1,339	615	363
Average Recorded Investment, With an allowance recorded, Total	2,222	1,180	1,821	1,012	1,012
Interest Income Recognized, With an allowance recorded, Total		5	6	12	32
Recorded Investment, Total	5,408	5,915	5,408	5,915	4,658
Unpaid Principal Balance, Total	5,996	6,363	5,996	6,363	5,213
Related Allowance, With an allowance recorded, Total	1,339	615	1,339	615	363
Average Recorded Investment, Total	5,536	6,464	5,243	5,055	4,919
Interest Income Recognized, Total	9	22	31	46	95
Real estate Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,042	2,957	2,042	2,957	1,918
Unpaid Principal Balance, With no related allowance, Total	2,606	3,116	2,606	3,116	2,205
Average Recorded Investment, With no related allowance, Total	2,153	2,528	2,074	2,341	2,385
Interest Income Recognized, With no related allowance, Total	17	10	22	23	38
Recorded Investment, With an allowance recorded, Total	2,448	910	2,448	910	1,130
Unpaid Principal Balance, With an allowance recorded, Total	2,774	1,380	2,774	1,380	1,811
Related Allowance, With an allowance recorded, Total	239	216	239	216	279
Average Recorded Investment, With an allowance recorded, Total	1,856	1,174	1,614	1,166	1,050
Interest Income Recognized, With an allowance recorded, Total		5		10	10
Recorded Investment, Total	4,490	3,867	4,490	3,867	3,048
Unpaid Principal Balance, Total	5,380	4,496	5,380	4,496	4,016
Related Allowance, With an allowance recorded, Total	239	216	239	216	279
Average Recorded Investment, Total	4,009	3,702	3,688	3,507	3,435
Interest Income Recognized, Total	17	15	22	33	48
Real estate Residential
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	1,115	619	1,115	619	1,718
Unpaid Principal Balance, With no related allowance, Total	1,273	888	1,273	888	2,060
Average Recorded Investment, With no related allowance, Total	1,122	740	1,321	1,150	1,362
Interest Income Recognized, With no related allowance, Total	5	4	10	11	25
Recorded Investment, With an allowance recorded, Total	810	1,661	810	1,661	435
Unpaid Principal Balance, With an allowance recorded, Total	878	1,740	878	1,740	450
Related Allowance, With an allowance recorded, Total	163	295	163	295	135
Average Recorded Investment, With an allowance recorded, Total	758	1,848	650	1,932	1,408
Interest Income Recognized, With an allowance recorded, Total	3	7	7	18	29
Recorded Investment, Total	1,925	2,280	1,925	2,280	2,153
Unpaid Principal Balance, Total	2,151	2,628	2,151	2,628	2,510
Related Allowance, With an allowance recorded, Total	163	295	163	295	135
Average Recorded Investment, Total	1,880	2,588	1,971	3,082	2,770
Interest Income Recognized, Total	8	11	17	29	54
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	160	251	160	251	261
Unpaid Principal Balance, With no related allowance, Total	178	261	178	261	274
Average Recorded Investment, With no related allowance, Total	181	245	207	214	233
Average Recorded Investment, With an allowance recorded, Total				20	20
Recorded Investment, Total	160	251	160	251	261
Unpaid Principal Balance, Total	178	261	178	261	274
Average Recorded Investment, Total	$ 181	$ 245	$ 207	$ 234	$ 253

Loans, net and allowance for_12

Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)contract	Jun. 30, 2019USD ($)contract	Jun. 30, 2020USD ($)contract	Jun. 30, 2019USD ($)contract	Dec. 31, 2019USD ($)
Number of loans modified \| contract	4	4		1
Pre-Modification Outstanding Recorded Investment	$ 1,085,000	$ 1,085,000		$ 340,000
Post-Modification Outstanding Recorded Investment	1,085,000	1,085,000		300,000
Loans receivable, related parties, considered as nonaccrual, past due or restructured or potential credit risk	$ 3,168,000	$ 2,677,000	$ 3,168,000	$ 2,677,000	$ 2,193,000
Real estate Commercial
Number of loans modified \| contract	3	3		1
Pre-Modification Outstanding Recorded Investment	$ 1,073,000	$ 1,073,000		$ 340,000
Post-Modification Outstanding Recorded Investment	$ 1,073,000	1,073,000		300,000
Recorded Investment		335,000		335,000
Number of defaults on loans restructured		$ 2		$ 2
Commercial and Industrial
Number of loans modified \| contract	1	1
Pre-Modification Outstanding Recorded Investment	$ 12,000	$ 12,000
Post-Modification Outstanding Recorded Investment	12,000	$ 12,000
Real estate Residential
Number of defaults on loans restructured \| contract			1
Recorded Investment	$ 52,000		$ 52,000
Number of defaults on loans restructured			$ 0

Loans, net and allowance for_13

Loans, net and allowance for loan losses - Schedule of Payment Deferrals Granted on Commercial Loans (Details) - Commercial - Loan Deferrals $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)loan
Number of Loans \| loan	479
Balance \| $	$ 306,770
Percentage of Total Loan Portfolio	14.10%
Percentage of Tier 1 Capital (Bank)	113.70%
Lessors of Nonresidential Buildings
Number of Loans \| loan	65
Balance \| $	$ 71,899
Percentage of Total Loan Portfolio	3.30%
Percentage of Tier 1 Capital (Bank)	26.90%
Lessors of Residential Buildings and Dwellings
Number of Loans \| loan	64
Balance \| $	$ 53,564
Percentage of Total Loan Portfolio	2.50%
Percentage of Tier 1 Capital (Bank)	19.90%
Hotels and Motels
Number of Loans \| loan	27
Balance \| $	$ 39,261
Percentage of Total Loan Portfolio	1.80%
Percentage of Tier 1 Capital (Bank)	14.50%
Full-Service Restaurants
Number of Loans \| loan	33
Balance \| $	$ 27,783
Percentage of Total Loan Portfolio	1.30%
Percentage of Tier 1 Capital (Bank)	10.30%
Limited-Service Restaurants
Number of Loans \| loan	8
Balance \| $	$ 11,829
Percentage of Total Loan Portfolio	0.50%
Percentage of Tier 1 Capital (Bank)	4.40%
Gasoline Stations with Convenience Stores
Number of Loans \| loan	18
Balance \| $	$ 12,422
Percentage of Total Loan Portfolio	0.60%
Percentage of Tier 1 Capital (Bank)	4.60%
Construction and Mining
Number of Loans \| loan	13
Balance \| $	$ 9,718
Percentage of Total Loan Portfolio	0.40%
Percentage of Tier 1 Capital (Bank)	3.60%
Assisted Living Facilities for the Elderly
Number of Loans \| loan	2
Balance \| $	$ 6,319
Percentage of Total Loan Portfolio	0.30%
Percentage of Tier 1 Capital (Bank)	2.30%
Colleges, Universities, and Professional Schools
Number of Loans \| loan	1
Balance \| $	$ 6,301
Percentage of Total Loan Portfolio	0.30%
Percentage of Tier 1 Capital (Bank)	2.30%
All Others
Number of Loans \| loan	248
Balance \| $	$ 67,674
Percentage of Total Loan Portfolio	3.10%
Percentage of Tier 1 Capital (Bank)	24.90%

Other assets - Components of Ot

Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Other real estate owned	$ 964	$ 450
Investment in low income housing partnership	6,639	6,901
Mortgage servicing rights	772	738
Bank owned life insurance	35,412	35,041
Restricted equity securities (FHLB and other)	5,353	10,201
Net deferred tax asset	1,272	3,362
Interest rate floor and swaps	17,930	5,672
Other assets	6,362	6,855
Total	74,778	69,220
Interest Rate Floor
Interest rate floor and swaps	2,019	944
Interest Rate Swaps
Interest rate floor and swaps	$ 15,985	$ 4,728

Fair value estimates - Transfer

Fair value estimates - Transfers Between Levels (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Fair value estimates
Fair value of assets transfers from level 1 to level 2	$ 0	$ 0
Fair value of assets transfers from level 2 to level 1	0	0
Fair value of liabilities transfers from level 1 to level 2	0	0
Fair value of liabilities transfers from level 2 to level 1	0	0
Fair value of assets transfers into level 3	0	0
Fair value of assets transfers out of level 3	0	0
Fair value of liabilities transfers into level 3	0	0
Fair value of liabilities transfers out of level 3	$ 0	$ 0

Fair value estimates - Schedule

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	$ 291,912	$ 332,879
U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	22,077	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	81,101	87,110
State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	33,161	34,898
State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	38,025	60,163
Mortgage-backed Securities, U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	5,867	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	107,478	115,709
Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	338	423
Loan held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	1,939	986
Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	2,019	944
Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	15,912	4,728
Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(16,005)	(4,680)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	22,415	24,551
Level 1 \| U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	22,077	24,128
Level 1 \| Common equity securities.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	338	423
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	269,497	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	81,101	87,110
Level 2 \| State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	33,161	34,898
Level 2 \| State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	38,025	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	5,867	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	107,478	115,709
Level 2 \| Loan held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	1,939	986
Level 2 \| Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	2,019	944
Level 2 \| Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets, Fair Value Estimate	15,912	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	$ (16,005)	$ (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	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 4,004	$ 1,808
Other real estate owned	588	283
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	4,004	1,808
Other real estate owned	$ 588	$ 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	Jun. 30, 2020	Dec. 31, 2019
Other real estate owned
Fair Value Inputs, Assets, Quantitative Information
Assets, Fair Value Estimate	$ 588	$ 283
Range and weighted average of appraisal adjustments	40.60%	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	$ 4,004	$ 1,808
Range and weighted average of appraisal adjustments	57.20%	54.40%
Range and weighted average of liquidation expenses	5.60%	5.20%
Impaired loans \| Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	5.00%	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	Jun. 30, 2020	Dec. 31, 2019
Investment securities:
Available-for-sale	$ 287,709	$ 330,478
Common equity securities	338	423
Held-to-maturity	7,717	7,889
Loans held for sale	1,939	986
Mortgage servicing rights	772	738
Other assets	74,778	69,220
Financial liabilities:
Subordinated debentures	33,000
Carrying Value
Financial assets:
Cash and cash equivalents	51,934	31,153
Investment securities:
Available-for-sale	287,709	330,478
Common equity securities	338	423
Held-to-maturity	7,401	7,656
Loans held for sale	1,939	986
Net loans	2,154,952	1,915,563
Accrued interest receivable	8,368	6,981
Mortgage servicing rights	772	738
Restricted equity securities (FHLB and other)	5,353	10,201
Interest rate floor	2,019	944
Interest rate swaps	15,912	4,728
Total assets	2,536,697	2,309,851
Financial liabilities:
Deposits	2,210,124	1,971,489
Long-term debt	60,938	32,733
Subordinated debentures	33,000
Accrued interest payable	872	1,277
Interest rate swap	16,005	4,680
Total liabilities	2,320,939	2,010,179
Fair Value
Financial assets:
Cash and cash equivalents	51,934	31,153
Investment securities:
Available-for-sale	287,709	330,478
Common equity securities	338	423
Held-to-maturity	7,717	7,889
Loans held for sale	1,939	986
Net loans	2,132,783	1,881,658
Accrued interest receivable	8,368	6,981
Mortgage servicing rights	1,359	1,444
Restricted equity securities (FHLB and other)	5,353	10,201
Interest rate floor	2,019	944
Interest rate swaps	15,912	4,728
Total assets	2,515,431	2,276,885
Financial liabilities:
Deposits	2,214,974	1,972,084
Long-term debt	61,453	33,075
Subordinated debentures	33,201
Accrued interest payable	872	1,277
Interest rate swap	16,005	4,680
Total liabilities	2,326,505	2,011,116
Level 1
Financial assets:
Cash and cash equivalents	51,934	31,153
Investment securities:
Available-for-sale	22,077	24,128
Common equity securities	338	423
Level 2
Investment securities:
Available-for-sale	265,632	306,350
Held-to-maturity	7,717	7,889
Loans held for sale	1,939	986
Accrued interest receivable	8,368	6,981
Mortgage servicing rights	1,359	1,444
Restricted equity securities (FHLB and other)	5,353	10,201
Interest rate floor	2,019	944
Interest rate swaps	15,912	4,728
Financial liabilities:
Deposits	2,214,974	1,972,084
Long-term debt	61,453	33,075
Subordinated debentures	33,201
Accrued interest payable	872	1,277
Interest rate swap	16,005	4,680
Level 3
Investment securities:
Net loans	$ 2,132,783	$ 1,881,658

Employee benefit plans - Compon

Employee benefit plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net periodic pension benefit:
Labor and Related Expense	$ 7,048	$ 8,037	$ 14,904	$ 15,632
Pension Benefits
Net periodic pension benefit:
Labor and Related Expense	353	415	660	755
Interest cost	163	192	217	320
Expected return on plan assets	(371)	(325)	(494)	(542)
Amortization of unrecognized net gain	65	68	87	113
Net periodic benefit	$ (143)	$ (65)	$ (190)	$ (109)

Employee benefit plans - Additi

Employee benefit plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Salaries and employee benefits expense	$ 186	$ 157	$ 191	$ 240
Common stock available for grant as awards	54,506		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
Restricted Stock \| 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares			16,269
Unrecognized compensation expense	$ 769		$ 769
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	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)security	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019USD ($)
Derivatives, Fair Value
Asset Derivatives	$ 17,930		$ 5,672
Liability Derivatives	16,515		4,680
Interest Receivable	8,368		6,981
Interest Payable	872		1,277
Net Amounts of Assets presented in the Balance Sheet	16,515		4,680
Interest expense
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income (expense)	73
Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income (expense)	126
Interest Rate Floor
Derivatives, Fair Value
Asset Derivatives	2,019		944
Interest Rate Swaps
Derivatives, Fair Value
Asset Derivatives	15,985		4,728
Credit-risk contract
Derivatives, Fair Value
Posted collateral	14,690		4,140
Net Amounts of Assets presented in the Balance Sheet	93		48
Derivatives designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives	2,019		944
Liability Derivatives	510
Derivatives designated as hedging instruments \| Interest Rate Floor
Derivatives, Fair Value
Notional amount	25,000
Derivatives designated as hedging instruments \| Interest Rate Floor \| Other Assets.
Derivatives, Fair Value
Asset Derivatives	2,019		944
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Asset Derivatives	15,912		4,728
Liability Derivatives	$ 16,005		4,680
Derivatives not designated as hedging instruments \| Interest Rate Swaps
Derivatives, Fair Value
Number of instruments held \| security	52
Notional amount	$ 254,598			$ 123,351
Interest Receivable			195
Interest Payable			195
Derivatives not designated as hedging instruments \| Interest Rate Swaps \| Other Assets.
Derivatives, Fair Value
Asset Derivatives	15,912		4,728
Derivatives not designated as hedging instruments \| Interest Rate Swaps \| Other Liabilities.
Derivatives, Fair Value
Liability Derivatives	16,005		$ 4,680
Cash Flow Hedge \| Derivatives designated as hedging instruments
Derivatives, Fair Value
Notional amount	50,000
Cash Flow Hedge \| Derivatives designated as hedging instruments \| Other Liabilities.
Derivatives, Fair Value
Liability Derivatives	$ 510
Forecast \| Cash Flow Hedge \| Interest expense
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income (expense)		$ 134
Forecast \| Cash Flow Hedge \| Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income (expense)		$ 531

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	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain Recognized in OCI Included Component	$ 1,180		$ 687
Amount of Loss Reclassified from Accumulated OCI into Income		$ (31)
Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Reclassified from Accumulated OCI into Income	73
Interest income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Reclassified from Accumulated OCI into Income	110
Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Recognized in OCI on Derivative	(360)
Amount of Gain Recognized in OCI Included Component	(359)
Amount of Gain Recognized in OCI Excluded Component	(1)
Amount of Loss Reclassified from Accumulated OCI into Income	183
Amount of Gain Reclassified from Accumulated OCI into Income Included Component	199
Amount of Loss Reclassified from Accumulated OCI into Income Excluded Component	(16)
Cash Flow Hedge \| Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Recognized in OCI on Derivative	(510)
Amount of Gain Recognized in OCI Included Component	(510)
Amount of Loss Reclassified from Accumulated OCI into Income	73
Amount of Gain Reclassified from Accumulated OCI into Income Included Component	73
Cash Flow Hedge \| Interest Rate Floor \| Interest income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Recognized in OCI on Derivative	150	474
Amount of Gain Recognized in OCI Included Component	151	827
Amount of Gain Recognized in OCI Excluded Component	(1)	(353)
Amount of Loss Reclassified from Accumulated OCI into Income	110	(31)
Amount of Gain Reclassified from Accumulated OCI into Income Included Component	126
Amount of Loss Reclassified from Accumulated OCI into Income Excluded Component	$ (16)	$ (31)

Derivatives and hedging activ_5

Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on the Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Derivative Instruments, Gain (Loss)
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded	$ (543)	$ 443	$ 493	$ 506
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income				(31)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component				(31)
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			110	$ (31)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income			110
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component			126
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component			(16)
Interest expense
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			73
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income			73
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component			$ 73

Derivatives and hedging activ_6

Derivatives and hedging activities - Effect of Other Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Fee Income \| Other income/(expense)
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ 259	$ 744	$ 860	$ 1,136
Derivatives not designated as hedging instruments \| Interest Rate Swaps \| Other non-interest income
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ (10)	$ (236)	$ (141)	$ (346)

Derivatives and hedging activ_7

Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Offsetting of Derivative Assets
Gross Amounts of Recognized Assets	$ 17,930	$ 5,672
Net Amounts of Assets presented in the Balance Sheet	17,930	5,672
Net Amount	17,930	5,672
Offsetting of Derivative Liabilities
Gross Amounts of Recognized Liabilities	16,515	4,680
Net Amounts of Assets presented in the Balance Sheet	16,515	4,680
Net Amount	$ 16,515	$ 4,680

Deposits - Components of Intere

Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Deposits.
Money market accounts	$ 434,628	$ 365,463
Now accounts	440,202	402,999
Savings accounts	404,040	370,270
Time deposits less than $250	251,121	231,450
Time deposits $250 or more	104,927	138,069
Total interest-bearing deposits	1,634,918	1,508,251
Noninterest-bearing deposits	575,206	463,238
Total deposits	$ 2,210,124	$ 1,971,489

Borrowings - Summary of Short-t

Borrowings - Summary of Short-term Borrowings (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Short-term Debt
Ending Balance	$ 50,000	$ 152,150
FHLB advances
Short-term Debt
Ending Balance	50,000	152,150
Average Balance	117,784	62,941
Maximum Month-End Balance	$ 164,150	$ 152,150
Weighted Average Rate for	1.15%	2.61%
Weighted Average Rate at	0.67%	1.84%

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - Peoples Bank - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Short-term Debt
Maximum borrowing capacity	$ 808,312	$ 723,608
Outstanding amount in borrowings	70,762	184,883
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	$ 137,600	$ 185,750

Borrowings - Long-term debt adv

Borrowings - Long-term debt advances (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument
Long-term debt	$ 60,938	$ 32,733
Long-term 1.74% fixed rate debt due June 2020
Debt Instrument
Long-term debt		5,000
Fixed interest rate (as a percent)	1.74%
Long-term 2.22% fixed rate debt due June 2020
Debt Instrument
Long-term debt		6,000
Fixed interest rate (as a percent)	2.22%
Long-term 1.84% fixed rate debt due December 2020
Debt Instrument
Long-term debt	$ 5,000	5,000
Fixed interest rate (as a percent)	1.84%
Long-term 1.99% fixed rate debt due June 2021
Debt Instrument
Long-term debt	$ 10,000	10,000
Fixed interest rate (as a percent)	1.99%
Long-term 0.35% fixed rate debt due April 2022
Debt Instrument
Long-term debt	$ 40,175
Fixed interest rate (as a percent)	0.35%
Long-term 4.69% fixed rate debt due March 2023
Debt Instrument
Long-term debt	$ 5,763	$ 6,733
Fixed interest rate (as a percent)	4.69%

Borrowings - Maturities of long

Borrowings - Maturities of long-term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Long-term debt.
2020	$ 5,992
2021	12,058
2022	42,333
2023	555
Total long-term debt	$ 60,938	$ 32,733

Borrowings - Fixed and adjustab

Borrowings - Fixed and adjustable rate information (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument
FHLB long-term advances	$ 20,763
Long-term debt	60,938	$ 32,733
Long-term 0.35% fixed rate debt due April 2022
Debt Instrument
Long-term debt	$ 40,175

Subordinated debt (Details)

Subordinated debt (Details) - 2020 Notes - USD ($) $ in Thousands	Jun. 01, 2020	Jan. 01, 2020
Debt Instrument [Line Items]
Aggregate principal amount	$ 33,000
Rate of interest for first five years	5.375%
Duration interest rate in effect		5 years
Percentage of debt redeemed	100.00%
Minimum
Debt Instrument [Line Items]
Floated interest rate	4.75%
Number of days notice to redeem debt	10 days

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income taxes
Federal statutory rate	14.80%	11.80%	13.40%	11.20%
Investment and other tax credits	$ 273	$ 390	$ 546	$ 778