Peoples Financial Services (PFIS) 10-K15 Mar 232022 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2022	Feb. 28, 2023	Jun. 30, 2022
Document and Entity Information
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Transition Report	false
Entity File Number	001-36388
Entity Registrant Name	Peoples Financial Services Corp.
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 400,419,710
Entity Common Stock, Shares Outstanding		7,160,567
Document Fiscal Period Focus	FY
Entity Central Index Key	0001056943
Amendment Flag	false
Auditor Firm ID	23
Auditor Name	Baker Tilly US, LLP
Auditor Location	Allentown, Pennsylvania

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Cash and cash equivalents
Cash and due from banks	$ 37,675	$ 30,415
Interest-bearing deposits in other banks	193	7,093
Federal funds sold		242,425
Total cash and cash equivalents	37,868	279,933
Investment securities:
Available-for-sale	477,703	517,321
Equity investments carried at fair value	110	140
Held-to-maturity: Fair value December 31, 2022, $76,563; December 31, 2021, $70,446	91,179	71,213
Total investment securities	568,992	588,674
Loans	2,730,116	2,329,173
Less: allowance for loan losses	27,472	28,383
Net loans	2,702,644	2,300,790
Loans held for sale		408
Goodwill	63,370	63,370
Premises and equipment, net	55,667	51,502
Bank owned life insurance	48,344	42,754
Deferred tax assets	18,739	5,355
Accrued interest receivable	11,715	8,528
Intangible assets, net	105	468
Other assets	46,071	27,701
Total assets	3,553,515	3,369,483
Deposits:
Noninterest-bearing	772,765	737,756
Interest-bearing	2,273,833	2,225,641
Total deposits	3,046,598	2,963,397
Short-term borrowings	114,930
Long-term debt	555	2,711
Subordinated debentures	33,000	33,000
Accrued interest payable	903	408
Other liabilities	42,179	29,841
Total liabilities	3,238,165	3,029,357
Stockholders' equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,158,017 shares at December 31, 2022 and 7,169,372 shares at December 31, 2021	14,321	14,341
Capital surplus	126,850	127,549
Retained earnings	230,515	203,750
Accumulated other comprehensive loss	(56,336)	(5,514)
Total stockholders' equity	315,350	340,126
Total liabilities and stockholders' equity	$ 3,553,515	$ 3,369,483

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED BALANCE SHEETS
Held-to-maturity, Fair value	$ 76,563	$ 70,446
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,158,017	7,169,372
Common stock, shares outstanding	7,158,017	7,169,372

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest and fees on loans:
Taxable	$ 95,505	$ 82,493	$ 83,683
Tax-exempt	5,084	3,957	3,736
Interest and dividends on investment securities:
Taxable	8,234	5,464	5,334
Tax-exempt	2,066	1,731	1,178
Dividends	2	74	97
Interest on interest-bearing deposits in other banks	101	8	31
Interest on federal funds sold	342	330	66
Total interest income	111,334	94,057	94,125
Interest expense:
Interest on deposits	12,632	7,310	11,739
Interest on short-term borrowings	1,103	78	848
Interest on long-term debt	76	260	702
Interest on subordinated debt	1,774	1,774	1,035
Total interest expense	15,585	9,422	14,324
Net interest income	95,749	84,635	79,801
(Credit) provision for loan losses	(449)	1,750	7,400
Net interest income after provision (credit) for loan losses	96,198	82,885	72,401
Noninterest income:
Mortgage banking income	511	975	1,595
Increase in cash surrender value of life insurance	1,020	889	774
Interest rate swap revenue	622	759	2,321
Net (losses) gains on equity investment securities	(31)	2	(6)
Net (losses) gains on sale of investment securities available for sale	(1,976)		918
Gain on sale of Visa Class B shares		12,153
Total noninterest income	11,845	25,636	16,642
Noninterest expense:
Salaries and employee benefits expense	33,553	29,736	30,135
Net occupancy and equipment expense	16,578	12,848	12,840
Amortization of intangible assets	363	491	606
Net gain on sale of other real estate owned	(478)	(210)
Professional fees and outside services	2,715	2,137	2,091
FDIC insurance and assessments	1,300	1,117	873
Donations	1,381	1,435	1,357
Other expenses	7,265	7,450	6,966
Total noninterest expense	62,677	55,004	54,868
Income before income taxes	45,366	53,517	34,175
Provision for income tax expense	7,276	9,998	4,821
Net income	38,090	43,519	29,354
Other comprehensive (loss) income:
Unrealized (loss) gain on investment securities available-for-sale	(66,435)	(11,487)	8,779
Reclassification adjustment for net loss (gain) on sales included in net income	1,976		(918)
Change in benefit plan liabilities	370	2,109	(1,398)
Change in derivative fair value	(728)	(322)	315
Other comprehensive (loss) income	(64,817)	(9,700)	6,778
Income tax (benefit) expense related to other comprehensive (loss) income	(13,995)	(2,037)	1,424
Other comprehensive (loss) income, net of income tax (benefit) expense	(50,822)	(7,663)	5,354
Comprehensive (loss) income	$ (12,732)	$ 35,856	$ 34,708
Per share data:
Basic	$ 5.31	$ 6.05	$ 4.02
Diluted	$ 5.28	$ 6.02	$ 4
Average common shares outstanding:
Basic	7,168,092	7,196,160	7,304,956
Diluted	7,211,643	7,235,303	7,337,843
Dividends declared	$ 1.58	$ 1.50	$ 1.44
Service charges, fees, commissions and other
Noninterest income:
Revenue from contracts with customers	$ 7,076	$ 6,169	$ 6,809
Merchant services income
Noninterest income:
Revenue from contracts with customers	964	879	824
Commission and fees on fiduciary activities
Noninterest income:
Revenue from contracts with customers	2,229	2,273	2,125
Wealth management income
Noninterest income:
Revenue from contracts with customers	$ 1,430	$ 1,537	$ 1,282

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Total
Balance at Dec. 31, 2019	$ 14,777	$ 135,251	$ 152,187	$ (3,205)	$ 299,010
Net income			29,354		29,354
Other comprehensive income (loss), net of income taxes				5,354	5,354
Dividends declared			(10,518)		(10,518)
Stock based compensation		570			570
Restricted stock issued: unearned income	17	(17)
Share retirement	(363)	(6,530)			(6,893)
Balance at Dec. 31, 2020	14,431	129,274	171,023	2,149	316,877
Net income			43,519		43,519
Other comprehensive income (loss), net of income taxes				(7,663)	(7,663)
Dividends declared			(10,792)		(10,792)
Stock based compensation		546			546
Restricted stock issued: unearned income	18	(18)
Share retirement	(108)	(2,253)			(2,361)
Balance at Dec. 31, 2021	14,341	127,549	203,750	(5,514)	340,126
Net income			38,090		38,090
Other comprehensive income (loss), net of income taxes				(50,822)	(50,822)
Dividends declared			(11,325)		(11,325)
Stock based compensation		534			534
Restricted stock issued: unearned income	32	(32)
Share retirement	(52)	(1,201)			(1,253)
Balance at Dec. 31, 2022	$ 14,321	$ 126,850	$ 230,515	$ (56,336)	$ 315,350

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Dividends declared (in dollars per share)	$ 1.58	$ 1.50	$ 1.44
Share retirement, shares	27,733	54,285	181,417
Common stock grants awarded, net of unearned compensation, shares	16,403	9,192	8,506
Unearned income	$ 210	$ 182	$ 520

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 38,090	$ 43,519	$ 29,354
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	3,088	2,702	2,900
Amortization of right-of-use lease asset	583	449	744
Amortization (accretion) of deferred loan fees, net	1,294	(491)	(2,236)
Amortization of intangibles	363	491	606
Amortization of low income housing partnerships	454	427	569
(Credit) provision for loan losses	(449)	1,750	7,400
Net unrealized loss (gain) on equity investment securities	31	(2)	35
Gain on sale of Visa Class B shares		(12,153)
Net (gain) loss on sale of other real estate owned	(478)	(126)	39
Net gain on sale of equity securities			(29)
Loans originated for sale	(12,200)	(24,387)	(43,780)
Proceeds from sale of loans originated for sale	12,655	25,147	44,832
Net gain on sale of loans originated for sale	(47)	(331)	(903)
Net amortization of investment securities	1,488	1,317	1,084
Net loss (gain) on sale of investment securities available-for-sale	1,976		(918)
Gain on sale of premises and equipment	(175)	(50)
Increase in cash surrender value of life insurance	(1,020)	(889)	(774)
Deferred income tax expense	611	450	(1,779)
Stock based compensation	534	546	570
Net change in:
Accrued interest receivable	(3,187)	(273)	(1,274)
Other assets	(1,701)	1,128	(12,268)
Accrued interest payable	495	(328)	(541)
Other liabilities	(48)	1,875	13,549
Net cash provided by operating activities	42,357	40,771	37,180
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale	43,503		65,120
Proceeds from repayments of investment securities:
Available-for-sale	41,191	57,513	84,622
Held-to-maturity	5,745	2,886	427
Proceeds from sale of Visa Class B shares		12,153
Purchases of investment securities:
Available-for-sale	(112,838)	(291,658)	(107,196)
Held-to-maturity	(25,872)	(66,943)
Net (purchase) redemption of restricted equity securities	(5,585)	1,352	4,804
Net increase in loans	(402,699)	(151,955)	(241,307)
Investment in bank owned life insurance	(5,881)		(6,500)
Purchases of premises and equipment	(7,831)	(4,885)	(2,292)
Proceeds from the sale of premises and equipment	170	58	435
Proceeds from bank owned life insurance	1,312	451
Proceeds from sale of other real estate owned	966	925	647
Net cash used in investing activities	(467,819)	(440,103)	(201,240)
Cash flows from financing activities:
Net increase in deposits	83,201	526,284	465,624
Repayment of long-term debt	(2,156)	(12,058)	(17,964)
Net increase (decrease) in short-term borrowings	114,930	(50,000)	(102,150)
Retirement of common stock	(1,253)	(2,361)	(6,893)
Cash dividends paid	(11,325)	(10,792)	(10,518)
Net cash provided by financing activities	183,397	451,073	361,099
Net (decrease) increase in cash and cash equivalents	(242,065)	51,741	197,039
Cash and cash equivalents at beginning of period	279,933	228,192	31,153
Cash and cash equivalents at end of period	37,868	279,933	228,192
Cash paid during the period for:
Interest	15,090	9,750	14,865
Income taxes	$ 10,000	6,740	6,250
Noncash items:
Transfers of loans to other real estate		544	1,163
Origination of mortgage servicing rights		247	318
Initial recognition of right-of-use assets		2,731	899
Initial recognition of lease liability		$ 2,731	899
Paycheck Protection Program Liquidity Facility
Cash flows from financing activities:
Proceeds from long-term debt			103,650
Repayment of long-term debt			(103,650)
Subordinated debentures
Cash flows from financing activities:
Proceeds from long-term debt			$ 33,000

Summary of significant accounti

Summary of significant accounting policies	12 Months Ended
Summary of significant accounting policies	Dec. 31, 2022
Summary of significant accounting policies
Summary of significant accounting policies	1. Summary of significant accounting policies: Nature of operations: The accompanying Consolidated Financial Statements include the accounts of Peoples Financial Services Corp. (the “Parent Company”) and its wholly-owned subsidiary, Peoples Security Bank and Trust Company ( “Peoples Bank” or when consolidated with the Parent Company, the “Company” or “Peoples”). All significant intercompany balances and transactions have been eliminated in consolidation. 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. The Company services its retail and commercial customers through Peoples Bank is a state-chartered bank and trust company under the jurisdiction of the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Peoples Bank’s primary product is loans to small and medium-sized businesses. Other lending products include one-to-four family residential mortgages and consumer loans. Peoples Bank primarily funds its loans by offering deposits to commercial enterprises and individuals. Deposit product offerings include checking accounts, savings accounts, money market accounts and certificates of deposits. The Company faces competition primarily from commercial banks, thrift institutions and credit unions within its market, many of which are larger in terms of assets and capital. In addition, mutual funds and security brokers compete for various types of deposits, and consumer, mortgage, leasing and insurance companies compete for various types of loans and leases. Principal methods of competing for banking and permitted nonbanking services include price, nature of product, quality of service and convenience of location. Peoples Financial Services Corp. and Peoples Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations. Basis of presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed parent company only financial information regarding the Parent Company. Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2022, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. Estimates: 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 deferred tax assets, the valuation of derivative instruments and impairment of goodwill. Actual results could differ from those estimates. Investment securities: Investment securities are classified and accounted for as either held-to-maturity or available-for-sale securities based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held-to maturity when management has the positive intent and ability to hold such securities to maturity. Held-to-maturity securities are stated at cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available-for-sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value with unrealized gains and losses reported in earnings. Estimated fair values for investment securities are based on quoted market prices from a national pricing service. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums on callable debt securities are amortized to the earliest call date from the maturity date. Premiums on non-callable securities are amortized and discounts are accreted using the interest method over the expected life of the security. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred. Management evaluates each investment security to determine if a decline in fair value below its amortized cost is an other-than-temporary impairment (“OTTI”) at least quarterly, and more frequently when economic or market concerns warrant an evaluation. Factors considered in determining whether an other-than-temporary impairment was incurred include: (i) the length of time and the extent to which the fair value has been less than amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether a decline in fair value is attributable to adverse conditions specifically related to the security or specific conditions in an industry or geographic area; (iv) the credit-worthiness of the issuer of the security; (v) whether dividend or interest payments have been reduced or have not been made; (vi) an adverse change in the remaining expected cash flows from the security such that the Company will not recover the amortized cost of the security; (vii) whether management intends to sell the security; and (viii) if it is more likely than not that management will be required to sell the security before recovery. If a decline is judged to be other-than-temporary, the individual security is written-down to fair value with the credit related component of the write-down included in earnings. The assessment of whether an other-than-temporary impairment exists involves a high degree of subjectivity and judgment and is based on information available to management at a point in time. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans held for sale: Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan. Loans, net: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income at the time when they are paid by customer. The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial, commercial real estate, municipal and other related tax free loans. Retail loans consist of residential real estate and other consumer loans. The Company makes commercial loans for real estate development and other business purposes to its customers. The Company’s credit policies establish advance rates against the different forms of collateral that can be pledged against various commercial loans. Typically, the majority of loans will be underwritten to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. Generally, assets financed through commercial loans are used for the operations of the business. Repayment for these types of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include construction, mini-perm, or longer term loans financing commercial properties. Repayment of these loans is generally dependent upon either the ongoing business cash flow from an owner occupied property or the lease/rental income or sale of a non-owner occupied property. Commercial real estate loans typically require a loan to value of not greater than Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one-to-four family residential mortgage loans and consumer loans. Of primary concern in commercial real estate lending is the borrower’s and any guarantor’s creditworthiness and the feasibility and cash flow potential of the financed project. Additional considerations include: location, market and geographic concentration risks, loan to value, strength of guarantors and quality of tenants. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a higher level of risk than residential real estate loans, which could be caused by unfavorable conditions in the real estate market or the economy. To effectively monitor loans on income properties, the Company requires borrowers and loan guarantors, if any, to provide annual financial statements on commercial real estate loans and rent rolls where applicable. In reaching a decision on whether to make a commercial real estate loan, the Company considers and reviews a cash flow analysis of the borrower and guarantor, when applicable. In addition, the Company evaluates business cash flows, if applicable, net operating income of the property, the borrower’s expertise, credit history and the value of the underlying property. The Company has generally required that the properties securing these real estate loans have debt service coverage ratios, which is net cash flow before debt service to debt service, of at least Commercial loans are generally made on the basis of a business entity or individual borrower’s ability to make repayment from business cash flows or individual borrowers’ employment and other income. Commercial business loans tend to have a slightly higher risk than commercial real estate loans because collateral usually consists of business assets versus real estate. Further, any collateral securing such loans may depreciate over time and could be difficult to appraise and liquidate. As a result, repayment of commercial business loans may depend substantially on the success of the business itself. Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower, loan to value ratio and term. Residential mortgages may have amortizations up to 30 years. Consumer loans include installment loans, car loans, and overdraft lines of credit. These loans are both secured and unsecured. Consumer loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state insolvency laws, may limit the amount that can be recovered on such loans. Off-balance sheet financial instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as interest and fees on loans and are included in interest income when paid. The Company records an allowance for off-balance sheet credit losses, if deemed necessary, separately as a liability. Nonperforming assets: Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans, troubled debt restructured loans and accruing loans past due 90 days or more. Past due status is based on contractual terms of the loan. Generally, a loan is classified as nonaccrual when it is determined that the collection of all or a portion of interest or principal is doubtful or when a default of interest or principal has existed for 90 days or more, unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual, interest accruals discontinue and uncollected accrued interest is reversed against income in the current period. Interest collections after a loan has been placed on nonaccrual status are credited to a suspense account until either the loan is returned to performing status or charged-off. The interest accumulated in the suspense account is credited to income over the remaining life of the loan using the effective yield method if the nonaccrual loan is returned to performing status. However, if the nonaccrual loan is charged-off, the accumulated interest is applied as a reduction to principal at the time the loan is charged-off. A nonaccrual loan is returned to performing status when the loan is current as to principal and interest and has performed according to the contractual terms for a minimum of six months. Troubled debt restructured loans (“TDRs”) 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 can generally fall within the following categories: ● Rate Modification — A modification in which the interest rate is changed to a below market rate. ● Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed. ● Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time. ● Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. ● Combination Modification — Any other type of modification, including the use of multiple categories above. 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 a 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 effected in the future. Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the allowance for loan losses. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense. Allowance for loan losses: The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses account is maintained through a provision for loan losses charged to earnings. Loans, or portions of loans, determined to be confirmed losses are charged against the allowance account and subsequent recoveries, if any, are credited to the account. A loss is considered confirmed when information available at the financial statement date indicates the loan, or a portion thereof, is uncollectible. Nonaccrual, troubled debt restructured and loans deemed impaired at the time of acquisition are reviewed monthly to determine if carrying value reductions are warranted or if these classifications should be changed. Consumer loans are considered losses and charged-off when they are 120 days past due. Management evaluates the adequacy of the allowance for loan losses account quarterly. This assessment is based on past charge-off experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Regulators, in reviewing the loan portfolio as part of the scope of a regulatory examination, may require the Company to increase its allowance for loan losses or take other actions that would require the Company to increase its allowance for loan losses. The allowance for loan losses is maintained at a level believed to be adequate to absorb probable credit losses related to specifically identified loans, as well as probable incurred losses inherent in the remainder of the loan portfolio as of the balance sheet date. This consists of a specific allowance for impaired loans individually evaluated and a portion for loss contingencies on those loans collectively evaluated. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Factors considered by management in determining impairment include payment status, ability to pay and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company recognizes interest income on impaired loans, including the recording of cash receipts, for nonaccrual, restructured loans or accruing loans depending on the status of the impaired loan. Loans considered impaired are measured for impairment 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. If 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, is less than the recorded investment in the loan, a specific allowance for the loan will be established. The collectively evaluated portion of the allowance for loan losses relates to large pools of smaller-balance homogeneous loans and those identified loans considered not individually impaired having similar characteristics as these loan pools. Loss contingencies for each of the major loan pools are determined by applying a total loss factor to the current balance outstanding for each individual pool. The total loss factor is comprised of a historical loss factor using a loss migration method plus qualitative factors, which adjusts the historical loss factor for changes in trends, conditions and other relevant factors that may affect repayment of the loans in these pools as of the evaluation date. Loss migration involves determining the percentage of each pool that is expected to ultimately result in loss based on historical loss experience. The historical loss factor for each pool is a weighted average of the Company’s historical net charge-off ratio for the most recent rolling twelve quarters. Management adjusts these historical loss factors by qualitative factors that represents a number of environmental risks that may cause estimated credit losses associated with the current portfolio to differ from historical loss experience. These environmental risks include: (i) changes in lending policies and procedures including underwriting standards and collection, charge-off and recovery practices; (ii) changes in the composition and volume of the portfolio; (iii) changes in national, local and industry conditions, including the effects of such changes on the value of underlying collateral for collateral-dependent loans; (iv) changes in the volume and severity of classified loans, including past due, nonaccrual, troubled debt restructures and other loan modifications; (v) changes in the levels of, and trends in, charge-offs and recoveries; (vi) the existence and effect of any concentrations of credit and changes in the level of such concentrations; (vii) changes in the experience, ability and depth of lending management and other relevant staff; (viii) changes in the quality of the loan review system and the degree of oversight by the board of directors; and (ix) the effect of external factors such as competition, pandemics and legal and regulatory requirements on the level of estimated credit losses in the current loan portfolio. Each environmental risk factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Qualitative loss factors are based on specific quantitative and qualitative criteria that are used to assess the level of loss exposure arising from key sources of risk within the loan portfolio segments. Management believes the level of the allowance for loan losses was adequate to absorb probable credit losses inherent in the loan portfolio as of December 31, 2022. Revenue from Contracts with Customers: The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The following is a discussion of revenues within the scope of the guidance: ● Service charges, fees, commissions and other . Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. The Company’s deposit services also include our ATM and debit card interchange revenue that is presented gross of the associated costs. Interchange revenue is generated by the Company’s deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. ● Commission and fees on fiduciary activities. Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when the Company has a right to invoice and are based on either the market value of the assets managed or the services provided. ● Wealth management income. Wealth management income includes fees and commissions charged when the Company arranges for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided. ● Merchant services income . Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of the Company’s merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin. Premises, equipment and lease commitments: Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, to the expected terms of the leases, if shorter: Premises and leasehold improvements 7 – 40 years Furniture, fixtures and equipment 3 – 10 years A right-of-use asset and related lease liability is recognized on the Consolidated Statements of Financial Condition for operating leases Peoples Bank has entered to lease certain office facilities. These amounts are reported as components of premises and equipment and other liabilities. Short-term operating leases, which are leases with an original term of 12 months or less and do not have a purchase option that is likely to be exercised, are not recognized as part of the right-of-use asset or lease liability. Goodwill and other intangible assets, net: The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over thei

Cash and due from banks

Cash and due from banks	12 Months Ended
Cash and due from banks	Dec. 31, 2022
Cash and due from banks
Cash and due from banks	2. Cash and due from banks: On March 26, 2020, the Board of Governors of the Federal Reserve System eliminated the reserve requirement for all depository institutions. Prior to this date, the Company was required to maintain average reserve balances as established by the Federal Reserve Bank. Total cash and due from banks balances were $37.9 million and $279.9 million at December 31, 2022 and 2021, respectively.

Investment securities

Investment securities	12 Months Ended
Investment securities	Dec. 31, 2022
Investment securities
Investment securities	3. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at December 31, 2022 and 2021 are summarized as follows: December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 199,937 $ $ 19,640 $ 180,297 U.S. government-sponsored enterprises 16,955 585 16,370 State and municipals: Taxable 68,946 13,588 55,358 Tax-exempt 99,774 93 11,460 88,407 Residential mortgage-backed securities: U.S. government agencies 982 40 942 U.S. government-sponsored enterprises 141,231 20,112 121,119 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,128 544 11,584 Corporate debt securities 4,000 374 3,626 Total $ 543,953 $ 93 $ 66,343 $ 477,703 Held-to-maturity: Tax-exempt state and municipals $ 11,237 $ 1 $ 841 $ 10,397 Residential mortgage-backed securities: U.S. government agencies 17,304 3,016 14,288 U.S. government-sponsored enterprises 62,638 10,760 51,878 Total $ 91,179 $ 1 $ 14,617 $ 76,563 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 193,849 $ 107 $ 2,382 $ 191,574 U.S. government-sponsored enterprises 33,435 343 33,778 State and municipals: Taxable 69,066 994 1,082 68,978 Tax-exempt 96,412 2,452 614 98,250 Residential mortgage-backed securities: U.S. government agencies 1,790 53 1,843 U.S. government-sponsored enterprises 109,018 939 2,925 107,032 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,542 406 12,948 Corporate debt securities 3,000 82 2,918 Total $ 519,112 $ 5,294 $ 7,085 $ 517,321 Held-to-maturity: Tax-exempt state and municipals $ 11,476 $ 126 $ 56 $ 11,546 Residential mortgage-backed securities: U.S. government agencies 18,802 392 18,410 U.S. government-sponsored enterprises 40,935 3 448 40,490 Total $ 71,213 $ 129 $ 896 $ 70,446 At December 31, 2022, our marketable equity security portfolio consisted of stock of one financial institution. At December 31, 2022 and December 31, 2021, we had $0.1 million in equity securities recorded at fair value. At December 31, 2022, the fair value of our equity portfolio was less than the cost basis by thousand. The following is a summary of unrealized and realized gains and losses recognized in net income on equity marketable securities during 2022 and 2021. (Dollars in thousands) 2022 2021 Net (loss) gain recognized during the period on equity securities $ (31) $ 2 Unrealized gain recognized during the reporting period on equity securities still held at the reporting date $ (31) $ 2 The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at December 31, 2022, is summarized as follows: Fair (Dollars in thousands) Value Within one year $ 15,601 After one but within five years 168,324 After five but within ten years 72,917 After ten years 84,933 341,775 Mortgage-backed and other amortizing securities 135,928 Total $ 477,703 Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at December 31, 2022, is summarized as follows: Amortized Fair (Dollars in thousands) Cost Value After five but within ten years $ 8,884 $ 8,227 After ten years 2,353 2,170 11,237 10,397 Mortgage-backed securities 79,942 66,166 Total $ 91,179 $ 76,563 Securities with a carrying value of $168.0 million and $203.6 million at December 31, 2022 2021 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 December 31, 2022 and 2021, 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 December 31, 2022 and 2021, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: December 31, 2022 Less Than 12 Months 12 Months or Greater Total Number of Number of Number of Securities in a Fair Unrealized Securities in a Fair Unrealized Securities in a Fair Unrealized (Dollars in thousands) Loss Position Value Losses Loss Position Value Losses Loss Position Value Losses U.S. Treasury securities 5 $ 23,700 $ 1,887 40 $ 156,597 $ 17,753 45 $ 180,297 $ 19,640 U.S. government-sponsored enterprises 4 14,104 197 1 2,266 388 5 16,370 585 State and municipals: Taxable 21 19,919 2,908 45 34,464 10,680 66 54,383 13,588 Tax-exempt 39 30,973 1,690 84 59,664 10,611 123 90,637 12,301 Residential mortgage-backed securities: U.S. government agencies 5 904 39 4 14,326 3,017 9 15,230 3,056 U.S. government-sponsored enterprises 19 57,166 2,029 25 115,831 28,843 44 172,997 30,872 Commercial mortgage-backed securities: U.S. government agencies U.S. government-sponsored enterprises 4 11,584 544 0 0 0 4 11,584 544 Corporate debt securities 1 953 47 5 2,673 327 6 3,626 374 Total 98 $ 159,303 $ 9,341 204 $ 385,821 $ 71,619 302 $ 545,124 $ 80,960 December 31, 2021 Less Than 12 Months 12 Months or Greater Total Number of Number of Number of Securities in a Fair Unrealized Securities in a Fair Unrealized Securities in a Fair Unrealized (Dollars in thousands) Loss Position Value Losses Loss Position Value Losses Loss Position Value Losses U.S. Treasury securities 42 $ 179,974 $ 2,382 $ $ 42 $ 179,974 $ 2,382 U.S. government-sponsored enterprises State and municipals: Taxable 27 26,827 718 8 8,008 364 35 34,835 1,082 Tax-exempt 61 38,693 357 2 10,319 313 63 49,012 670 Residential mortgage-backed securities: U.S. government agencies 3 18,398 392 3 18,398 392 U.S. government-sponsored enterprises 13 77,875 1,454 7 48,276 1,919 20 126,151 3,373 Commercial mortgage-backed securities: U.S. government-sponsored enterprises Corporate debt securities 4 2,449 51 1 470 31 5 2,919 82 Total 150 $ 344,216 $ 5,354 18 $ 67,073 $ 2,627 168 $ 411,289 $ 7,981 Management does not consider the unrealized losses on the debt securities, as a result of significantly higher market 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 known 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 December 31, 2022. There was no OTTI recognized for each of the years in the three-year period ended December 31, 2022.

Loans, net and allowance for lo

Loans, net and allowance for loan losses	12 Months Ended
Loans, net and allowance for loan losses	Dec. 31, 2022
Loans, net and allowance for loan losses
Loans, net and allowance for loan losses	4. Loans, net and allowance for loan losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at December 31, 2022 and 2021 are summarized as follows. Net deferred loan fees of $0.3 million and $1.6 million are included in loan balances at December 31, 2022 and 2021, respectively. The decrease in deferred loan fees is due in part to PPP forgiveness during 2022. Net deferred loan origination fees remaining related to PPP loans is $0.2 million at December 31, 2022. Included in the commercial balances at December 31, 2022 are PPP loans that had an outstanding balance at December 31, 2022 of $22.3 million comprised of $10.9 million remaining from those originated during 2021 as part of round two and $11.4 million remaining from loans originated during 2020 under round one of the program. The PPP loans are risk rated ‘Pass’ and do not carry an allowance for loan losses due to a 100 percent SBA guarantee. The outstanding balance is considered current at December 31, 2022. (Dollars in thousands) December 31, 2022 December 31, 2021 Commercial Taxable $ 377,215 $ 424,455 Non-taxable 222,043 188,672 Total 599,258 613,127 Real estate Commercial 1,709,827 1,343,539 Residential 330,728 297,624 Total 2,040,555 1,641,163 Consumer Indirect Auto 76,461 65,791 Consumer Other 13,842 9,092 Total 90,303 74,883 Total $ 2,730,116 $ 2,329,173 Loans outstanding to directors, executive officers, principal stockholders or to their affiliates totaled $3.2 million at December 31, 2022 and 2021. Advances and new loans during 2022 totaled $1.1 million and $4.8 million during 2021. Payoffs and pay downs totaled Deposits from related parties amounted to $6.8 million at December 31, 2022 and $10.9 million at December 31, 2021. At December 31, 2022, the majority of the Company’s loans were at least partially secured by real estate in the markets we operate in. Therefore, a primary concentration of credit risk is directly related to the real estate market in these regions. Changes in the general economy, local economy or in the real estate market could affect the ultimate collectability of this portion of the loan portfolio. Management does not believe there are any other significant concentrations of credit risk that could affect the loan portfolio. The changes in the allowance for loan losses account by major classification of loan for the year ended December 31, 2022, 2021, and 2020 were as follows: December 31, 2022 Real estate (Dollars in thousands) Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 8,453 $ 15,928 $ 3,209 $ 793 $ 28,383 Charge-offs (161) (284) (31) (311) (787) Recoveries 40 110 4 171 325 Provisions (credits) (2,720) 2,161 (110) 220 (449) Ending balance $ 5,612 $ 17,915 $ 3,072 $ 873 $ 27,472 Ending balance: individually evaluated for impairment 19 21 40 Ending balance: collectively evaluated for impairment $ 5,593 $ 17,915 $ 3,051 $ 873 $ 27,432 Loans receivable: Ending balance $ 599,258 $ 1,709,827 $ 330,728 $ 90,303 $ 2,730,116 Ending balance: individually evaluated for impairment 98 2,063 1,760 3,921 Ending balance: collectively evaluated for impairment $ 599,160 $ 1,707,764 $ 328,968 $ 90,303 $ 2,726,195 December 31, 2021 Real estate (Dollars in thousands) Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Charge-offs (492) (252) (24) (188) (956) Recoveries 89 68 7 81 245 Provisions 122 1,553 97 (22) 1,750 Ending balance $ 8,453 $ 15,928 $ 3,209 $ 793 $ 28,383 Ending balance: individually evaluated for impairment 40 109 26 175 Ending balance: collectively evaluated for impairment $ 8,413 $ 15,819 $ 3,183 $ 793 $ 28,208 Loans receivable: Ending balance $ 613,127 $ 1,343,539 $ 297,624 $ 74,883 $ 2,329,173 Ending balance: individually evaluated for impairment 199 2,890 1,273 4,362 Ending balance: collectively evaluated for impairment $ 612,928 $ 1,340,649 $ 296,351 $ 74,883 $ 2,324,811 December 31, 2020 Real estate (Dollars in thousands) Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (2,771) (144) (247) (317) (3,479) Recoveries 525 16 57 148 746 Provisions (credit) 4,092 3,191 93 24 7,400 Ending balance $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Ending balance: individually evaluated for impairment 947 180 75 1,202 Ending balance: collectively evaluated for impairment $ 7,787 $ 14,379 $ 3,054 $ 922 $ 26,142 Loans receivable: Ending balance $ 679,286 $ 1,137,990 $ 277,414 $ 83,292 $ 2,177,982 Ending balance: individually evaluated for impairment 4,297 3,952 1,546 9,795 Ending balance: collectively evaluated for impairment $ 674,989 $ 1,134,038 $ 275,868 $ 83,292 $ 2,168,187 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 December 31, 2022 and 2021: December 31, 2022 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Commercial $ 590,621 $ 7,822 $ 815 $ $ 599,258 Real estate: Commercial 1,699,041 7,509 3,277 1,709,827 Residential 329,098 1,630 330,728 Consumer 90,020 283 90,303 Total $ 2,708,780 $ 15,331 $ 6,005 $ $ 2,730,116 December 31, 2021 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Commercial $ 611,151 $ 896 $ 1,080 $ $ 613,127 Real estate: Commercial 1,324,646 13,939 4,954 1,343,539 Residential 294,892 333 2,399 297,624 Consumer 74,744 139 74,883 Total $ 2,305,433 $ 15,168 $ 8,572 $ $ 2,329,173 The increase to special mention commercial loans from December 31, 2022 to December 31, 2021 is primarily the result of the downgrade of one credit with an outstanding balance of $7.8 million, due to insufficient cash flows as the borrower’s operations have not stabilized in the anticipated timeframe. The decrease to special mention commercial real estate loans is due in part to an upgrade of a $3.5 million credit resulting from improved financial performance and satisfactory repayment history and the payoff of a $2.4 million credit. Substandard residential real estate loans decreased $0.7 million primarily due to the payoff of a $0.5 million credit. Information concerning nonaccrual loans by major loan classification at December 31, 2022 and 2021 is summarized as follows: (Dollars in thousands) December 31, 2022 December 31, 2021 Commercial $ 86 $ 185 Real estate: Commercial 1,155 1,793 Residential 562 694 Consumer 232 139 Total $ 2,035 $ 2,811 Total nonperforming loans decreased $0.8 million to $2.0 million at December 31, 2022 from $2.8 million at December 31, 2021 as a result of lower nonaccrual commercial real estate loans. The decrease in nonperforming loans was due million. The major classification of loans by past due status at December 31, 2022 and 2021 are summarized as follows: December 31, 2022 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and (Dollars in thousands) Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 137 $ 38 $ 86 $ 261 $ 598,997 $ 599,258 $ Real estate: Commercial 102 2 334 438 1,709,389 1,709,827 Residential 1,162 128 988 2,278 328,450 330,728 748 Consumer 690 199 120 1,009 89,294 90,303 Total $ 2,091 $ 367 $ 1,528 $ 3,986 $ 2,726,130 $ 2,730,116 $ 748 December 31, 2021 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and (Dollars in thousands) Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 101 $ 155 $ 158 $ 414 $ 612,713 $ 613,127 $ Real estate: Commercial 768 423 834 2,025 1,341,514 1,343,539 Residential 1,552 207 265 2,024 295,600 297,624 13 Consumer 477 163 51 691 74,192 74,883 Total $ 2,898 $ 948 $ 1,308 $ 5,154 $ 2,324,019 $ 2,329,173 $ 13 Total past due loans at December 31, 2021 decreased $1.2 million to $4.0 million from $5.2 million the prior year as a result of lower commercial real estate delinquencies. The amount of residential loans in the formal process of foreclosure totaled $0.6 million at December 31, 2022 and $0.3 million at December 31, 2021. The following tables summarize information concerning impaired loans as of and for the years ended December 31, 2022, 2021 and 2020 by major loan classification: December 31, 2022 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 78 $ 421 $ $ 119 $ 7 Real estate: Commercial 2,063 2,654 2,753 59 Residential 1,520 1,733 1,036 28 Consumer 232 244 218 Total 3,893 5,052 4,126 94 With an allowance recorded: Commercial 20 20 19 27 2 Real estate: Residential 240 244 21 286 12 Total 260 264 40 313 14 Total impaired loans Commercial 98 441 19 146 9 Real estate: Commercial 2,063 2,654 2,753 59 Residential 1,760 1,977 21 1,322 40 Consumer 232 244 218 Total $ 4,153 $ 5,316 $ 40 $ 4,439 $ 108 December 31, 2021 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 158 $ 481 $ $ 964 $ 13 Real estate: Commercial 2,376 3,120 2,719 22 Residential 873 1,073 1,016 19 Consumer 139 148 100 Total 3,546 4,822 4,799 54 With an allowance recorded: Commercial 41 41 40 1,091 15 Real estate: Commercial 513 543 109 802 22 Residential 401 401 26 436 13 Consumer Total 955 985 175 2,329 50 Total impaired loans Commercial 199 522 40 2,055 28 Real estate: Commercial 2,889 3,663 109 3,521 44 Residential 1,274 1,474 26 1,452 32 Consumer 139 148 100 Total $ 4,501 $ 5,807 $ 175 $ 7,128 $ 104 December 31, 2020 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,251 $ 3,421 $ $ 2,915 $ 30 Real estate: Commercial 2,372 2,964 2,148 28 Residential 1,086 1,263 1,223 21 Consumer 111 121 167 Total 5,820 7,769 6,453 79 With an allowance recorded: Commercial 2,046 2,094 947 2,038 17 Real estate: Commercial 1,580 1,710 180 1,687 36 Residential 460 482 75 624 13 Consumer Total 4,086 4,286 1,202 4,349 66 Total impaired loans Commercial 4,297 5,515 947 4,953 47 Real estate: Commercial 3,952 4,674 180 3,835 64 Residential 1,546 1,745 75 1,847 34 Consumer 111 121 167 Total $ 9,906 $ 12,055 $ 1,202 $ 10,802 $ 145 The amounts of interest income recognized using the cash-basis method on impaired loans for the years ended December 31, 2022, 2021 and 2020 were $0.1 million, $0.1 million and $0.1 million, respectively. Included in the commercial loan, commercial real estate and residential real estate categories are troubled debt restructurings (TDRs) that were classified as impaired. TDRs totaled $1.4 million and $1.6 million at December 31, 2022 and 2021, respectively. The decrease in TDR balances is due primarily to $0.2 million in payoffs and pay downs during the year. There were no loans modified in 2022 or 2021 that resulted in TDRs. There were four loans modified in 2020. The The following tables summarize the loans whose terms have been modified resulting in TDRs during the year ended December 31, 2020. December 31, 2020 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded (Dollars in thousands except number of contracts) of Contracts Investment Recorded Investment Investment Commercial 1 $ 12 $ 12 $ 5 Commercial real estate 3 1,073 1,073 1,046 Total 4 $ 1,085 $ 1,085 $ 1,051 There were no payment defaults within 12 months of its modification on loans considered TDRs for the years ended December 31, 2022, December 31, 2021 and December 31, 2020.

Off-balance sheet financial ins

Off-balance sheet financial instruments	12 Months Ended
Off-balance sheet financial instruments	Dec. 31, 2022
Off-balance sheet financial instruments.
Off-balance sheet financial instruments	5. Off-balance sheet financial instruments: The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused portions of lines of credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, unused portions of lines of credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company follows the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company records a valuation allowance for off-balance sheet credit losses, if deemed necessary, separately as a liability. The allowance is not significant. The contractual amounts of off-balance sheet commitments at December 31, 2022 and 2021 are summarized as follows: (Dollars in thousands) 2022 2021 Commitments to extend credit $ 553,337 $ 431,011 Unused portions of lines of credit 78,406 64,108 Standby letters of credit 57,626 58,254 $ 689,369 $ 553,373 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. Unused portions of lines of credit, including home equity and overdraft protection agreements, are commitments for possible future extensions of credit to existing customers. Unused portions of home equity lines are collateralized and generally have fixed expiration dates. Overdraft protection agreements are uncollateralized and usually do not carry specific maturity dates. Unused portions of lines of credit ultimately may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit expire within twelve months . The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending other loan commitments. The Company requires collateral supporting these standby letters of credit as deemed necessary. The amount of letters of credit secured with collateral is million at December 31, 2021. The carrying value of the liability for the Company’s obligations under guarantees for standby letters of credit was not material at December 31, 2022 and 2021.

Premises and equipment, net

Premises and equipment, net	12 Months Ended
Premises and equipment, net	Dec. 31, 2022
Premises and equipment, net
Premises and equipment, net	6. Premises and equipment, net: Premises and equipment at December 31, 2022 and 2021 are summarized as follows: (Dollars in thousands) 2022 2021 Land $ 7,302 $ 7,255 Premises and leasehold improvements 55,865 50,426 Right-of-use assets 7,980 8,563 Furniture, fixtures and equipment 20,626 19,096 Gross premises and equipment 91,773 85,340 Less: accumulated depreciation 36,106 33,838 Net premises and equipment $ 55,667 $ 51,502

Operating lease commitments and

Operating lease commitments and contingencies	12 Months Ended
Operating lease commitments and contingencies	Dec. 31, 2022
Operating lease commitments and contingencies
Operating lease commitments and contingencies	7. Operating lease commitments and contingencies: The Company is obligated under non-cancelable operating leases for certain branch locations. We determine if an arrangement is a lease at inception by assessing whether a contract contains a right to control an identified asset for a period of time in exchange for consideration. For all leases, we recognize a right-of-use asset and lease liability at the effective date of the lease. Operating leases right-of-use assets are included in premises and equipment, and lease liabilities are included in other liabilities in the consolidated balance sheet commencing at January 1, 2019. We have no finance leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms generally containing one or more five-year renewal options. At December 31, 2022, the Company’s leases have remaining renewal terms that can extend the lease term from seven years to thirty-one years that are reasonably certain of being exercised. The weighted average remaining lease term at December 31, 2022 is 17.1 years. At December 31, 2021, the weighted average remaining lease term was . The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term as of January 1, 2019 for leases that existed at adoption. The discount rate used for leases added subsequently was the annual percentage increase outlined in the terms of each lease. There were At December 31, 2022, right-of-use assets of $8.0 million were included in premises and equipment, and the related lease liability totaled $8.3 million was included in other liabilities in the consolidated balance sheet. Right-of-use assets and the related lease liability were $8.6 million and $8.8 million, respectively, at December 31, 2021. There were no new leases in 2022, and one lease, for the previous Binghamton, NY branch, was not renewed. Rent expense for the years ended December 31, 2022, 2021 and 2020 amounted to Future minimum lease payments under operating leases are summarized as follows: (Dollars in thousands) 2023 $ 736 2024 669 2025 688 2026 691 2027 617 Thereafter 7,297 Total future minimum lease payments 10,698 Less amount representing interest (2,398) Present value of future minimum lease payments $ 8,300

Other assets

Other assets	12 Months Ended
Other assets	Dec. 31, 2022
Other assets
Other assets	8. Other assets: The major components of other assets at December 31, 2022 and 2021 are summarized as follows: (Dollars in thousands) December 31, 2022 December 31, 2021 Other real estate owned $ 121 $ 609 Investment in low income housing partnership 5,446 5,900 Mortgage servicing rights 914 882 Restricted equity securities (FHLB and other) 9,630 4,045 Interest rate floor 1 844 Interest rate swaps 21,794 9,026 Other assets 8,165 6,395 Total $ 46,071 $ 27,701 Interest rate swaps balance represents the fair value our commercial loan back-to-back swaps and is higher due to higher market rates. The Company originates one-to-four family residential mortgage loans for sale in the secondary market with servicing rights retained. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were

Deposits

Deposits	12 Months Ended
Deposits	Dec. 31, 2022
Deposits.
Deposits	9. Deposits: The major components of interest-bearing and noninterest-bearing deposits at December 31, 2022 and 2021 are summarized as follows: (Dollars in thousands) December 31, 2022 December 31, 2021 Interest-bearing deposits: Money market accounts $ 685,323 $ 588,245 Now accounts 772,712 851,086 Savings accounts 523,931 491,796 Time deposits less than $250 199,136 203,719 Time deposits $250 or more 92,731 90,795 Total interest-bearing deposits 2,273,833 2,225,641 Noninterest-bearing deposits 772,765 737,756 Total deposits $ 3,046,598 $ 2,963,397 The aggregate amounts of maturities for all time deposits at December 31, 2022, are summarized as follows: (Dollars in thousands) 2023 $ 197,015 2024 50,037 2025 8,502 2026 8,962 2027 19,980 Thereafter 7,371 $ 291,867 The aggregate amount of deposits reclassified as loans was $0.6 million at December 31, 2022, and $0.2 million at December 31, 2021. Management evaluates transaction accounts that are overdrawn for collectability as part of its evaluation for credit losses.

Short-term borrowings

Short-term borrowings	12 Months Ended
Short-term borrowings	Dec. 31, 2022
Short-term borrowings
Short-term borrowings	10. Short-term borrowings: Short-term borrowings consisted of FHLB advances representing overnight borrowings or borrowings with original terms of less than twelve months at December 31, 2022, 2021 and 2020: At and for the year ended December 31, 2022 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End (Dollars in thousands, except percents) Balance Balance Balance the Year of the Period Other borrowings $ 14,530 $ 10,033 $ 16,100 2.10 % 4.33 % FHLB advances 100,400 32,647 125,975 2.73 4.45 Total short-term borrowings $ 114,930 $ 42,680 $ 142,075 2.58 % 4.43 % At and for the year ended December 31, 2021 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End (Dollars in thousands, except percents) Balance Balance Balance the Year of the Year FHLB advances $ $ 13,973 $ 50,000 0.56 % % At and for the year ended December 31, 2020 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End (Dollars in thousands, except percents) Balance Balance Balance the Year of the Year FHLB advances $ 50,000 $ 83,716 $ 179,199 1.01 % 0.40 % 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 December 31, 2022, the maximum borrowing capacity was $1.2 billion of which $101.0 million was outstanding in borrowings and $388.8 million was used to issue standby letters of credit to collateralize public fund deposits. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day. The Company also has unsecured line of credit agreements with two correspondent banks, where the total line amount was $18.0 million at December 31, 2022 and 2021. There were amounts outstanding on either line of credit at December 31, 2022 or 2021. Interest on these borrowings accrues daily based on the daily federal funds rate.

Long-term debt

Long-term debt	12 Months Ended
Long-term debt	Dec. 31, 2022
Long-term debt.
Long-term debt	11. Long-term debt: Long-term debt, consisting of one advance from the FHLB, at December 31, 2022 and 2021 is as follows: Interest Rate (Dollars in thousands, except percents) Fixed December 31, 2022 December 31, 2021 March 2023 4.69 % $ 555 2,711 $ 555 $ 2,711 Maturities of long-term debt, by contractual maturity, in years subsequent to December 31, 2022 are as follows: (Dollars in thousands) 2023 $ 555 $ 555 The FHLB advance is not convertible and has a fixed rate. There were no new long-term advances entered into with the FHLB during 2022 or 2021.

Subordinated debt

Subordinated debt	12 Months Ended
Subordinated debt	Dec. 31, 2022
Subordinated debt
Subordinated debt	12. Subordinated debt: On June 1, 2020, the Company sold $33.0 million aggregate principal amount of Subordinated Notes due 2030 (the “2020 Notes”) to accredited investors. The 2020 Notes qualify as Tier 2 capital for regulatory capital purposes. The 2020 Notes bear interest at a rate of 5.375 percent per year for the first five years and then float based on a benchmark rate (as defined), 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 percent. Interest is 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 payable quarterly in arrears thereafter on March 1, June 1, September 1, and December 1. The 2020 Notes 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 percent) 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 proceeding by or against the Company.

Fair value of financial instrum

Fair value of financial instruments	12 Months Ended
Fair value of financial instruments	Dec. 31, 2022
Fair value of financial instruments
Fair value of financial instruments	13. Fair value of financial instruments: Assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and 2021 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2022 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 180,297 $ 180,297 $ $ U.S. government-sponsored enterprises 16,370 16,370 State and municipals: Taxable 55,358 55,358 Tax-exempt 88,407 88,407 Mortgage-backed securities: U.S. government agencies 942 942 U.S. government-sponsored enterprises 132,703 132,703 Corporate debt securities 3,626 3,626 Common equity securities 110 110 Total investment securities $ 477,813 $ 180,407 $ 297,406 $ Loan held for sale $ $ Interest rate floor-other assets $ 1 $ 1 Interest rate swap-other assets $ 21,794 $ 21,794 Interest rate swap-other liabilities $ (21,466) $ (21,466) Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2021 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 191,574 $ 191,574 $ $ U.S. government-sponsored enterprises 33,778 33,778 State and municipals: Taxable 68,978 68,978 Tax-exempt 98,250 98,250 Mortgage-backed securities: U.S. government agencies 1,843 1,843 U.S. government-sponsored enterprises 119,980 119,980 Corporate debt securities 2,918 2,918 Common equity securities 140 140 Total investment securities $ 517,461 $ 191,714 $ 325,747 $ Loan held for sale $ 408 $ 408 Interest rate floor-other assets $ 844 $ 844 Interest rate swap-other assets $ 8,767 $ 8,767 Interest rate swap-other liabilities $ (8,811) $ (8,811) Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2022 and 2021 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2022 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 220 $ $ $ 220 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2021 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 780 $ $ $ 780 Other real estate owned 487 487 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 (Dollars in thousands, except percents) Fair Value Range December 31, 2022 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 220 Appraisal of collateral Appraisal adjustments 21.6% to 97.0% (77.7)% Liquidation expenses 3.0% to 6.0% (4.9)% Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands, except percents) Fair Value Range December 31, 2021 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 780 Appraisal of collateral Appraisal adjustments 6.4% to 97.0% (65.2)% Liquidation expenses 3.0% to 6.0% (5.1)% Other real estate owned $ 487 Appraisal of collateral Appraisal adjustments 35.9% to 35.9% (35.9)% Liquidation expenses 3.0% to 6.0% (5.0)% Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The carrying and fair values of the Company’s financial instruments at December 31, 2022 and 2021 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 (Dollars in thousands) Carrying Fair Assets Inputs Inputs December 31, 2022 Value Value (Level 1) (Level 2) (Level 3) Financial assets: Cash and due from banks $ 37,868 $ 37,868 $ 37,868 $ $ Investment securities: Available-for-sale 477,703 477,703 180,297 297,406 Common equity securities 110 110 110 Held-to-maturity 91,179 76,563 76,563 Loans held for sale Net loans 2,702,644 2,562,780 2,562,780 Accrued interest receivable 11,715 11,715 11,715 Mortgage servicing rights 914 1,762 1,762 Restricted equity securities (FHLB and other) 9,630 9,630 9,630 Interest rate floor 1 1 1 Interest rate swaps 21,794 21,794 21,794 Total $ 3,353,558 $ 3,199,926 Financial liabilities: Deposits $ 3,046,598 $ 3,035,615 $ $ 3,035,615 $ Short-term borrowings 114,930 114,743 114,743 Long-term debt 555 555 555 Subordinated debentures 33,000 53,998 53,998 Accrued interest payable 903 903 903 Interest rate swaps 21,466 21,466 21,466 Total $ 3,217,452 $ 3,227,280 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Fair Assets Inputs Inputs December 31, 2021 Value Value (Level 1) (Level 2) (Level 3) Financial assets: Cash and due from banks $ 279,933 $ 279,933 $ 279,933 $ $ Investment securities: Available-for-sale 517,321 517,321 191,574 325,747 Common equity securities 140 140 140 Held-to-maturity 71,213 70,446 70,446 Loans held for sale 408 408 408 Net loans 2,300,790 2,261,586 2,261,586 Accrued interest receivable 8,528 8,528 8,528 Mortgage servicing rights 882 1,357 1,357 Restricted equity securities (FHLB and other) 4,045 4,045 4,045 Interest rate floor 844 844 844 Interest rate swaps 8,767 8,767 8,767 Total $ 3,192,871 $ 3,153,375 Financial liabilities: Deposits $ 2,963,397 $ 2,963,547 $ $ 2,963,547 $ Long-term debt 2,711 2,778 2,778 Subordinated debentures 33,000 32,337 32,337 Accrued interest payable 408 408 408 Interest rate swaps 8,811 8,811 8,811 Total $ 3,008,327 $ 3,007,881

Derivatives and hedging activit

Derivatives and hedging activities	12 Months Ended
Derivatives and hedging activities	Dec. 31, 2022
Derivatives and hedging activities
Derivatives and hedging activities	14. 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 and borrowings. 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. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) 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 the next twelve months, the Company estimates that an additional $64 thousand 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 December 31, 2022, the Company had 86 interest rate swaps with an aggregate notional amount of $382.5 million 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 December 31, 2022 and December 31, 2021. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of December 31, 2022 (1) As of December 31, 2021 (1) (2) As of December 31, 2022 As of December 31, 2021 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet (Dollars in thousands) Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1 Other Assets $ 844 $ $ Total derivatives designated as hedging instruments $ 1 $ 844 $ $ Derivatives not Interest Rate Swaps (2) $ 382,476 Other Assets $ 22,195 Other Assets $ 9,026 Other Liabilities $ 21,466 Other Liabilities $ 8,811 Total derivatives not $ 22,195 $ 9,026 $ 21,466 $ 8,811 (1) Amounts include accrued interest of $0.4 million and $0.3 million at December 31, 2022 and 2021. (2) Notional amount of interest rate swaps at December 31, 2021 were $392.7 million. 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 December 31, 2022 and December 31, 2021. Location of Amount of Amount of Gain or (Loss) Gain Amount of Amount of (Loss) Amount of Recognized from Amount of Reclassified (Loss) (Loss) Recognized in (Loss) Accumulated Gain from Accumulated Reclassified Recognized in OCI Included Recognized in Other Comprehensive Reclassified OCI into Income from Accumulated OCI on Component OCI Excluded Income into from Accumulated Included Component OCI into Income (Dollars in thousands) Derivative December 31, 2022 Component Income OCI into Income December 31, 2022 Excluded Component Derivatives in Cash Flow Hedging Relationships: Cash Flow Swap $ $ $ Other expense $ $ $ Interest Rate Floor () (515) (497) (18) Interest Income 212 276 (64) Total $ (515) $ (497) $ (18) $ 212 $ 276 $ (64) Location of Amount of Amount of Gain or (Loss) Gain (Loss) Amount of Amount of Gain (Loss) Amount of Recognized from Amount of Reclassified (Loss) (Loss) Recognized in (Loss) Accumulated Gain from Accumulated Reclassified Recognized in OCI Included Recognized in Other Comprehensive Reclassified OCI into Income from Accumulated OCI on Component OCI Excluded Income into from Accumulated Included Component OCI into Income (Dollars in thousands) Derivative December 31, 2021 Component Income OCI into Income December 31, 2021 Excluded Component Derivatives in Cash Flow Hedging Relationships : Cash Flow Swap $ 401 $ 401 $ Interest Expense $ (23) $ (23) $ Cash Flow Swap Other Expense (25) (25) Interest Rate Floor () (228) (245) 17 Interest Income 543 607 (64) Total $ 173 $ 156 $ 17 $ 495 $ 559 $ (64) * 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 as of December 31, 2022 and December 31, 2021. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the twelve months ended December 31, 2022 2022 2021 2021 (Dollars in thousands) 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 $ 212 $ $ 543 $ (48) 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 212 543 (23) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring (25) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component 276 607 (48) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component (64) (64) Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income The tables below present the effect of the Company’s other derivative financial instruments on the consolidated statements of income and comprehensive income for the years ended December 31, 2022 and 2021. Amount of Gain Amount of Gain Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Twelve Months Ended Twelve Months Ended (Dollars in thousands) Derivative December 31, 2022 December 31, 2021 Derivatives Not Designated as Hedging Instruments: Interest Rate Swaps Interest rate swap revenue $ 516 $ 136 Other Contracts 5 Total $ 521 $ 136 Fee Income Fee income $ 106 $ 623 Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of December 31, 2022 and December 31, 2021. 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 December 31, 2022 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 (Dollars in thousands) Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 22,196 $ $ 22,196 $ $ 14,530 $ 7,666 Offsetting of Derivative Liabilities as of December 31, 2022 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Liabilities Recognized Offset in the presented in the Financial Cash Collateral Net (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Paid* Amount Derivatives $ 21,466 $ $ 21,466 $ 21,466 $ $ *Cash collateral of $7,830 was paid but not presented as an offset above. Offsetting of Derivative Assets as of December 31, 2021 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 $ 9,870 $ $ 9,870 $ 3,218 $ $ 6,652 Offsetting of Derivative Liabilities as of December 31, 2021 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Liabilities Recognized Offset in the presented in the Financial Cash Collateral Net Liabilities Balance Sheet Balance Sheet Instruments Paid Amount Derivatives $ 8,818 $ $ 8,818 $ 3,218 $ 5,600 $ 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 December 31, 2022, 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 $2.0 million. As of December 31, 2021, 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 $5.6 million. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $7.4 million against its obligations under these agreements as of December 31, 2022 and December 31, 2021. Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the agreement. The cash collateral is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the cash collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above. 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.

Stock plans

Stock plans	12 Months Ended
Stock plans	Dec. 31, 2022
Stock plans
Stock plans	15. Stock plans: 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 exercisability 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 December 31, 2022, 17,364 shares of the Company’s common stock were available for grant as awards pursuant to the 2017 Plan. If any outstanding awards under the 2017 Plan are forfeited by the holder or canceled by the Company, the underlying shares would be available for re-grant to others. The 2017 Plan authorizes grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. In 2022, the Company awarded 4,396 shares of non-performance-based restricted stock and 15,390 performance-based restricted stock units under the 2017 Plan. In 2021, the Company awarded performance-based restricted stock units under the 2017 Plan. In 2022, In 2021, 3,128 shares of non-performance-based and 12,332 shares of performance based restricted stock granted under the 2017 Plan vested and there were no shares forfeited under the provisions of the 2017 Plan. The non-performance restricted stock grants made in 2022, 2021 and 2020 vest equally over three years from the grant date. The performance-based restricted stock units vest The activity related to the 2017 Plan for each of the years ended December 31, 2022, 2021 and 2020 was as follows: (Dollars in thousands) 2022 2021 2020 Nonvested, January 1 36,281 31,923 25,984 Granted shares 19,787 19,818 16,269 Vested shares 16,403 15,460 8,455 Forfeited shares 195 1,875 Nonvested, December 31 39,470 36,281 31,923 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. Compensation is recognized over the vesting period and adjusted based on the performance criteria. The Company classifies share-based compensation for employees within “salaries and employee benefits expense” on the Consolidated Statements of Income and Comprehensive Income. The Company recognized expense for awards granted under the 2017 plan of $0.5 million in 2022, $0.5 million in 2021 and $0.6 million in 2020. As of December 31, 2022, the Company had

Employee benefit plans

Employee benefit plans	12 Months Ended
Employee benefit plans	Dec. 31, 2022
Employee benefit plans
Employee benefit plans	16. Employee benefit plans: The Company sponsors a separate ESOP and Retirement Profit Sharing 401(k) Plan. The Company also maintains SERPs and an employees’ pension plan, which is currently frozen. Under the ESOP, amounts voted by the Company’s Board of Directors are paid into the ESOP and each eligible participant is credited with an amount in proportion to their annual compensation or a fixed dollar amount. All contributions to the ESOP are invested in or will be invested primarily in Company stock. Distribution of a participant’s ESOP account occurs upon retirement, death or termination in accordance with the plan provisions. Under the Retirement Profit Sharing Plan, amounts approved by the Board of Directors have been paid into a fund and each participant was credited with an amount in proportion to their annual compensation. Upon retirement, death or termination, each participant is paid the total amount of their credits in the fund in one of a number of optional ways in accordance with the plan provisions. Eligible participants may elect deferrals of up to the maximum amounts permitted by law. The Company contributed $0.2 million, $0.3 million and $0.4 million to the ESOP for 2022, 2021 and 2020. In addition, the Company contributed $1.3 million in 2022 and $1.2 million in both 2021 and 2020, was comprised of a safe harbor contribution of $0.7 million, $0.7 million and $0.7 million and a discretionary match of $0.6 million, $0.6 million and $0.6 million. The Company established a SERP Plan to replace certain 401(k) plan benefits lost due to compensation limits imposed on qualified plans by federal tax law. The annual benefit is a maximum of 6 percent of the executive compensation in excess of Federal limits. The total liability associated with this plan was $161 thousand at December 31, 2022 and 2021, respectively. The expense associated with the plan was $20 thousand, $19 thousand and $9 thousand for 2022, 2021 and 2020 respectively. The Company has SERPs for the benefit of certain officers. At December 31, 2022 and 2021, other liabilities include $2.8 million and $2.6 million accrued under the plans. Compensation expense includes approximately $0.4 million, $0.4 million and $0.5 million relating to these SERPs for the years ended December 31, 2022, 2021 and 2020, respectively. Under the Employees’ Pension Plan, currently frozen, amounts computed on an actuarial basis were being paid by the Company into a trust fund. The plan provided for fixed benefits payable for life upon retirement at the age of 65, based on length of service and compensation levels as defined in the plan. As of June 22, 2008 no further benefits are being accrued in this plan. Plan assets of the trust fund are invested and administered by the Trust Department of the Company. Information related to the Employees’ Pension Plan at December 31, 2022 and 2021 is as follows: Pension Benefits (Dollars in thousands) 2022 2021 Change in benefit obligation: Benefit obligation, beginning $ 18,066 $ 19,113 Interest cost 456 419 Change in experience gain 26 (49) Change in actuarial assumptions (3,899) (603) Benefits paid (857) (814) Benefit obligation, ending 13,792 18,066 Change in plan assets: Fair value of plan assets, beginning 19,257 17,628 Actual return on plan assets (2,294) 2,443 Employer contributions Benefits paid (857) (814) Fair value of plan assets, ending 16,106 19,257 Funded status at end of year $ 2,314 $ 1,191 The Company utilized the mortality scale within the mortality tables from MP 2021 to re-measure its pension plan at December 31, 2022 and 2021. Amounts recognized in the consolidated balance sheets at December 31, 2022 and 2021 are as follows: Pension Benefits (Dollars in thousands) 2022 2021 (Other Assets)/Other Liabilities $ (2,314) $ (1,190) Amounts recognized in the accumulated other comprehensive income (loss) consist of: Net actuarial gain (5,499) (5,868) Deferred taxes 1,184 1,232 Net amount recognized $ (4,315) $ (4,636) The accumulated benefit obligation for the defined benefit pension plan was $13.8 million and $18.1 million at December 31, 2022 and 2021, respectively. Components of net periodic pension income and other amounts recognized in other comprehensive loss are as follows: Pension Benefits (Dollars in thousands) 2022 2021 2020 Net periodic pension income: Interest cost $ 456 $ 419 $ 544 Expected return on plan assets (1,407) (1,288) (1,236) Amortization of unrecognized net loss 198 301 218 Net periodic pension income: (753) (568) (474) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) 456 419 544 Deferred tax (96) (88) (114) Total recognized in other comprehensive income (loss) 360 331 430 Total recognized in net period pension cost and other comprehensive income (loss) $ (393) $ (237) $ (44) Weighted-average assumptions used to determine benefit obligations and related expenses were as follows: Pension Benefits 2022 2021 2020 Discount rate: Obligation 4.93 % 2.59 % 2.25 % Expense 2.59 2.25 3.25 Expected long-term return on plan assets 7.50 % 7.50 % 7.50 % The expected long-term return on plan assets was determined using average historical returns of the Company’s plan assets. The Company’s pension plan weighted-average asset allocations at December 31, 2022 and 2021, by asset category are as follows: 2022 2021 Asset Category: Cash and cash equivalents 4.7 % 4.8 % Equity securities 60.3 67.4 Corporate bonds 19.5 19.6 U.S. government securities 15.5 8.2 100.0 % 100.0 % Fair value measurement of pension plan assets at December 31, 2022 and 2021 is as follows: December 31, 2022 Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 759 $ 759 $ $ Equity securities: U.S. large cap 7,365 7,365 International 2,338 2,338 Fixed income securities: U.S. Treasuries 511 511 U.S. government agencies 1,991 1,991 Corporate bonds 3,142 3,142 Total $ 16,106 $ 10,462 $ 5,644 $ December 31, 2021 Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 918 $ 918 $ $ Equity securities: U.S. large cap 11,940 11,940 International 1,039 1,039 Fixed income securities: U.S. Treasuries 214 214 U.S. government agencies 1,371 1,371 Corporate bonds 3,775 3,775 Total $ 19,257 $ 13,897 $ 5,360 $ The Company investment policies and strategies with respect to the pension plan include: (i) the Trust and Investment Division’s equity philosophy is large-cap core with a value bias (we invest in individual high-grade common stocks that are selected from our approved list); (ii) diversification is maintained by having no more than 20 percent in any industry sector and no individual equity representing more than 10 percent of the portfolio; and (iii) the fixed income style is conservative but also responsive to the various needs of our individual clients. Fixed income securities consist of U.S. government agencies or corporate bonds rated “A” or better. The Company targets the following allocation percentages: (i) cash equivalents 10 percent; (ii) fixed income 40 percent; and (iii) equities 50 percent. There is no Company stock included in equity securities at December 31, 2022 or 2021. The Company has not determined the amount of the expected contribution to the Employees’ Pension Plan for 2023. The following benefit payments are expected to be paid in the next five years and in the aggregate for the five years thereafter: (Dollars in thousands) Pension Benefits 2023 $ 907 2024 955 2025 987 2026 1,009 2027 1,016 Thereafter 4,959

Income taxes

Income taxes	12 Months Ended
Income taxes	Dec. 31, 2022
Income taxes
Income taxes	17. Income taxes: The current and deferred amounts of the provision for income taxes expense (benefit) for each of the years ended December 31, 2022, 2021 and 2020 are summarized as follows: (Dollars in thousands) 2022 2021 2020 Current $ 6,665 $ 9,548 $ 6,600 Deferred 611 450 (1,779) Total income tax expense $ 7,276 $ 9,998 $ 4,821 The components of the net deferred tax asset at December 31, 2022 and 2021 are summarized as follows: (Dollars in thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 5,916 $ 5,960 Lease liability 1,787 1,846 Defined benefit plan 1,798 Deferred compensation 860 884 Deferred loan fees 1,215 Deferred loan fees and costs 59 Investment securities available-for-sale 14,266 379 Other 196 86 Total 24,882 10,370 Deferred tax liabilities: Lease right-of-use assets 1,718 1,798 Premises and equipment, net 1,692 1,441 Merger related accounting 472 572 Deferred loan costs 885 Defined benefit plan 75 Investment securities available-for-sale 1,872 Other 389 244 Total 6,143 5,015 Net deferred tax asset $ 18,739 $ 5,355 A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 21.0 percent for the years ended December 31, 2022, December 31, 2021 and December 31, 2020 is summarized as follows: 2022 2021 2020 (Dollars in thousands, except percents) Amount % Amount % Amount % Provision for income tax at statutory rate $ 9,527 21.00 % $ 11,239 21.00 % $ 7,177 21.00 % State tax, net of federal benefit 216 0.63 475 0.89 Tax exempt interest (1,400) (3.09) (1,194) (2.23) (1,032) (3.02) Bank owned life insurance income (205) (0.45) (119) (0.22) (299) (0.87) Residential housing program tax credits (911) (2.01) (1,091) (2.04) (1,094) (3.20) Other, net 49 (0.04) 688 1.29 69 0.19 Total $ 7,276 16.04 % $ 9,998 18.69 % $ 4,821 14.10 % The Company computes deferred income taxes under the asset and liability method. Deferred incomes taxes are recognized for tax consequences of “temporary differences” by applying enacted statutory tax rates to differences between the financial reporting and the tax basis of existing assets and liabilities. A deferred tax liability is recognized for all temporary differences that result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions subject to reduction of the asset by a valuation allowance. The Company follows FASB ASC Topic 740 “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return. ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes. The Company did not recognize or accrue any interest or penalties related to income taxes during the years ended December 31, 2022, 2021 and 2020. The Company does not have an accrual for uncertain tax positions as of December 31, 2022, 2021 or 2020, as deductions take or benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Tax returns for all years 2019 and thereafter are subject to examination by tax authorities.

Parent Company financial statem

Parent Company financial statements	12 Months Ended
Parent Company financial statements	Dec. 31, 2022
Parent Company financial statements
Parent Company financial statements	18. Parent Company financial statements: CONDENSED BALANCE SHEETS (Dollars in thousands) 2022 2021 Assets: Cash and cash equivalents $ 359 $ 4,044 Equity securities 110 140 Investment in bank subsidiary 346,734 368,427 Other assets 1,295 703 Total assets $ 348,498 $ 373,314 Liabilities and Stockholders’ Equity: Subordinated debt $ 33,000 $ 33,000 Accrued interest payable 148 148 Other liabilities 40 Stockholders’ equity 315,350 340,126 Total liabilities and stockholders’ equity $ 348,498 $ 373,314 CONDENSED STATEMENTS OF INCOME (Dollars in thousands) 2022 2021 2020 Income: Dividends from subsidiaries $ 11,325 $ 17,593 $ 10,518 Other income 3 4 8 Net gain realized on sale of equity securities 29 Unrealized holding gains (losses) on equity securities (31) 2 (35) Total income 11,297 17,599 10,520 Expense: Interest expense on subordinated debt 1,774 1,774 1,035 Other expenses 1,188 222 200 Total expenses 2,962 1,996 1,235 Income before taxes and undistributed income 8,335 15,603 9,285 Income tax benefit (624) (410) (255) Income before undistributed income of subsidiaries 8,959 16,013 9,540 Equity in undistributed net income of subsidiaries 29,131 27,506 19,814 Net income $ 38,090 $ 43,519 $ 29,354 condensed Statements of Cash Flows (Dollars in thousands) 2022 2021 2020 Cash flows from operating activities: Net income $ 38,090 $ 43,519 $ 29,354 Adjustments: Net losses (gains) on investment securities 31 (2) 6 Undistributed net income of subsidiaries (29,131) (27,506) (19,814) Increase in other assets (591) (429) (255) Increase (decrease) in other liabilities (40) 148 Stock based compensation 534 546 570 Net cash provided by operating activities 8,893 16,128 10,009 Cash flows from investing activities: Sale of equity securities 279 Net cash provided by investing activities 279 Cash flows from financing activities: Proceeds from subordinated debentures 33,000 Investment in subsidiary (30,000) Retirement of common stock (1,253) (2,361) (6,893) Cash dividends paid (11,325) (10,792) (10,518) Net cash used in financing activities (12,578) (13,153) (14,411) Increase (decrease) in cash and cash equivalents (3,685) 2,975 (4,123) Cash and cash equivalents at beginning of year 4,044 1,069 5,192 Cash and cash equivalents at end of year $ 359 $ 4,044 $ 1,069

Regulatory matters

Regulatory matters	12 Months Ended
Regulatory matters	Dec. 31, 2022
Regulatory matters
Regulatory matters	19. Regulatory matters: Dividends are paid by the Parent Company from its assets, which are mainly provided by dividends from Peoples Bank. Under the Pennsylvania Business Corporation Law of 1988, as amended, the Company may not pay a dividend if, after payment, either the Company could not pay its debts as they become due in the usual course of business, or the Company’s total assets would be less than its total liabilities. The determination of total assets and liabilities may be based upon: (i) financial statements prepared on the basis of GAAP; (ii) financial statements that are prepared on the basis of other accounting practices and principles that are reasonable under the circumstances; or (iii) a fair valuation or other method that is reasonable under the circumstances. In addition, the Federal Reserve Board has the power to prohibit dividends by bank holding companies if their actions constitute unsafe or unsound practices. The Federal Reserve Board has issued a policy statement on the payment of cash dividends by bank holding companies, which expresses the Federal Reserve Board’s view that a bank holding company should pay cash dividends only to the extent that the company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality and overall financial condition. The Federal Reserve Board also indicated that it would be inappropriate for a bank holding company experiencing serious financial problems to borrow funds to pay dividends. Under the prompt corrective action regulations, the Federal Reserve Board may prohibit a bank holding company from paying any dividends if the holding company’s bank subsidiary is classified as “undercapitalized.” In addition, under the Pennsylvania Banking Code of 1965, as amended, Peoples Bank may only declare and pay dividends out of accumulated net earnings, or accumulated net earnings acquired as a result of a merger within seven years. Further, Peoples Bank may not declare or pay any dividend unless Peoples Bank’s surplus would not be reduced by the payment of the dividend below 100 percent of our capital stock. Pennsylvania law requires that each year Peoples Bank set aside as surplus, a sum equal to not less than 10 percent of its net earnings if surplus does not equal at least 100 percent of our capital stock. Under federal law and FDIC regulations, an insured bank may not pay dividends if doing so would make it undercapitalized within the meaning of the prompt corrective action law or if in default of its deposit insurance fund assessment. Although subject to the aforementioned regulatory restrictions, the Company’s consolidated retained earnings at December 31, 2022 and 2021 were not restricted under any borrowing agreement as to payment of dividends or reacquisition of common stock. The Company has paid cash dividends since its formation as a bank holding company in 1986. It is the present intention of the Board of Directors to continue this dividend payment policy, however, further dividends must necessarily depend upon earnings, financial condition, appropriate legal restrictions and other factors relevant at the time the Board of Directors considers payment of dividends. The amount of funds available for transfer from Peoples Bank to the Company in the form of loans and other extensions of credit is also limited. Under Federal regulation, transfers to any one affiliate are limited to 10.0 percent of capital and surplus. At December 31, 2022, the maximum amount available for transfer from Peoples Bank to the Company in the form of loans amounted to $36.7 million. At December 31, 2022 and 2021, there were no loans outstanding, nor were any advances made during 2022 and 2021. The Company and Peoples Bank are subject to certain regulatory capital requirements administered by the federal banking agencies, which are defined in Section 38 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Peoples Bank’s consolidated financial statements. In the event an institution is deemed to be undercapitalized by such standards, FDICIA prescribes an increasing amount of regulatory intervention, including the required institution of a capital restoration plan and restrictions on the growth of assets, branches or lines of business. Further restrictions are applied to the significantly or critically undercapitalized institutions including restrictions on interest payable on accounts, dismissal of management and appointment of a receiver. For well capitalized institutions, FDICIA provides authority for regulatory intervention when the institution is deemed to be engaging in unsafe and unsound practices or receives a less than satisfactory examination report rating. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Peoples Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Risk-based capital rules require that banks and holding companies maintain a "capital conservation buffer" of 250 basis points in excess of the "minimum capital ratio." The minimum capital ratio is equal to the prompt corrective action adequately capitalized threshold ratio. Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. Peoples Bank met the capital requirement for the “well capitalized” category under the regulatory framework for prompt corrective action at December 31, 2022. To be categorized as well capitalized, Peoples Bank must maintain certain minimum Tier I risk-based, total risk-based and Tier I Leverage ratios as set forth in the following tables. The Tier I Leverage ratio is defined as Tier I capital to total average assets less intangible assets. Regulators may assign Peoples Bank to a lower capitalization category based on factors other than capital. The Company and Peoples Bank’s actual capital ratios at December 31, 2022 and 2021, and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions are as follows: December 31, 2022 Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands, except percents) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Consolidated $ 308,211 11.13 % $ 124,569 4.50 % $ % Peoples Bank 339,596 12.27 124,563 4.50 179,924 6.50 Tier 1 capital to risk-weighted assets: Consolidated 308,211 11.13 166,093 6.00 Peoples Bank 339,596 12.27 166,083 6.00 221,444 8.00 Total capital to risk-weighted assets: Consolidated 335,683 12.13 221,457 8.00 Peoples Bank 367,068 13.26 221,444 8.00 276,806 10.00 Tier 1 capital to average assets: Consolidated 308,211 9.03 136,559 4.00 Peoples Bank 339,596 9.69 140,167 4.00 175,209 5.00 December 31, 2021 Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands, except percents) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Consolidated $ 281,802 12.32 % $ 102,949 4.50 % $ % Peoples Bank 310,102 13.76 101,449 4.50 146,538 6.50 Tier 1 capital to risk-weighted assets: Consolidated 281,802 12.32 137,266 6.00 Peoples Bank 310,102 13.76 135,266 6.00 180,355 8.00 Total capital to risk-weighted assets: Consolidated 310,185 13.56 183,021 8.00 Peoples Bank 338,284 15.01 180,355 8.00 225,443 10.00 Tier 1 capital to average assets: Consolidated 281,802 9.16 123,013 4.00 Peoples Bank 310,102 9.58 129,476 4.00 161,845 5.00

Contingencies

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2022
Contingencies
Contingencies	20. Contingencies: Neither the Company nor any of its property is subject to any material legal proceedings. Management, after consultation with legal counsel, does not anticipate that the ultimate liability, if any, arising out of pending and threatened lawsuits will have a material effect on the operating results or financial position of the Company.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	12 Months Ended
Accumulated Other Comprehensive Income (Loss)	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	21. Accumulated Other Comprehensive Income (Loss): The components of accumulated other comprehensive (loss) included in stockholders’ equity at December 31, 2022 and 2021 are as follows: (Dollars in thousands) December 31, 2022 December 31, 2021 Net unrealized loss on investment securities available-for-sale $ (66,250) $ (1,791) Income tax benefit (14,266) (376) Net of income taxes (51,984) (1,415) Benefit plan adjustments (5,499) (5,868) Income tax benefit (1,184) (1,232) Net of income taxes (4,315) (4,636) Derivative adjustments (47) 680 Income tax (benefit) expense (10) 143 Net of income taxes (37) 537 Accumulated other comprehensive loss $ (56,336) $ (5,514) Other comprehensive income (loss) and related tax effects for the years ended December 31, 2022, 2021 and 2020 are as follows: (Dollars in thousands) 2022 2021 2020 Unrealized loss on investment securities available-for-sale $ (66,435) $ (11,487) $ 8,779 Net loss (gain) on the sale of investment securities available-for-sale (1) 1,976 (918) Other comprehensive (loss) income on available-for-sale debt securities (64,459) (11,487) 7,861 Benefit plans: Amortization of actuarial loss (2) 198 301 218 Actuarial gain (loss) 172 1,808 (1,616) Net change in benefit plan liabilities 370 2,109 (1,398) Net change in derivatives (728) (322) 315 Other comprehensive(loss) income before taxes (64,817) (9,700) 6,778 Income (benefit) tax (13,995) (2,037) 1,424 Other comprehensive (loss) income $ (50,822) $ (7,663) $ 5,354 (1) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in gains on sale of investment securities on the consolidated statements of income and comprehensive income. (2) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in the computation of net periodic pension expense. Refer to Note 17 included in these consolidated financial statements.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	12 Months Ended
Summary of significant accounting policies (Policies)	Dec. 31, 2022
Summary of significant accounting policies
Nature of operations	Nature of operations: The accompanying Consolidated Financial Statements include the accounts of Peoples Financial Services Corp. (the “Parent Company”) and its wholly-owned subsidiary, Peoples Security Bank and Trust Company ( “Peoples Bank” or when consolidated with the Parent Company, the “Company” or “Peoples”). All significant intercompany balances and transactions have been eliminated in consolidation. 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. The Company services its retail and commercial customers through Peoples Bank is a state-chartered bank and trust company under the jurisdiction of the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Peoples Bank’s primary product is loans to small and medium-sized businesses. Other lending products include one-to-four family residential mortgages and consumer loans. Peoples Bank primarily funds its loans by offering deposits to commercial enterprises and individuals. Deposit product offerings include checking accounts, savings accounts, money market accounts and certificates of deposits. The Company faces competition primarily from commercial banks, thrift institutions and credit unions within its market, many of which are larger in terms of assets and capital. In addition, mutual funds and security brokers compete for various types of deposits, and consumer, mortgage, leasing and insurance companies compete for various types of loans and leases. Principal methods of competing for banking and permitted nonbanking services include price, nature of product, quality of service and convenience of location. Peoples Financial Services Corp. and Peoples Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations.
Basis of presentation	Basis of presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed parent company only financial information regarding the Parent Company. Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2022, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.
Estimates	Estimates: 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 deferred tax assets, the valuation of derivative instruments and impairment of goodwill. Actual results could differ from those estimates.
Investment securities	Investment securities: Investment securities are classified and accounted for as either held-to-maturity or available-for-sale securities based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held-to maturity when management has the positive intent and ability to hold such securities to maturity. Held-to-maturity securities are stated at cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available-for-sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value with unrealized gains and losses reported in earnings. Estimated fair values for investment securities are based on quoted market prices from a national pricing service. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums on callable debt securities are amortized to the earliest call date from the maturity date. Premiums on non-callable securities are amortized and discounts are accreted using the interest method over the expected life of the security. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred. Management evaluates each investment security to determine if a decline in fair value below its amortized cost is an other-than-temporary impairment (“OTTI”) at least quarterly, and more frequently when economic or market concerns warrant an evaluation. Factors considered in determining whether an other-than-temporary impairment was incurred include: (i) the length of time and the extent to which the fair value has been less than amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether a decline in fair value is attributable to adverse conditions specifically related to the security or specific conditions in an industry or geographic area; (iv) the credit-worthiness of the issuer of the security; (v) whether dividend or interest payments have been reduced or have not been made; (vi) an adverse change in the remaining expected cash flows from the security such that the Company will not recover the amortized cost of the security; (vii) whether management intends to sell the security; and (viii) if it is more likely than not that management will be required to sell the security before recovery. If a decline is judged to be other-than-temporary, the individual security is written-down to fair value with the credit related component of the write-down included in earnings. The assessment of whether an other-than-temporary impairment exists involves a high degree of subjectivity and judgment and is based on information available to management at a point in time.
Transfers of Financial Assets	Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Loans held for sale	Loans held for sale: Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan.
Loans, net	Loans, net: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income at the time when they are paid by customer. The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial, commercial real estate, municipal and other related tax free loans. Retail loans consist of residential real estate and other consumer loans. The Company makes commercial loans for real estate development and other business purposes to its customers. The Company’s credit policies establish advance rates against the different forms of collateral that can be pledged against various commercial loans. Typically, the majority of loans will be underwritten to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. Generally, assets financed through commercial loans are used for the operations of the business. Repayment for these types of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include construction, mini-perm, or longer term loans financing commercial properties. Repayment of these loans is generally dependent upon either the ongoing business cash flow from an owner occupied property or the lease/rental income or sale of a non-owner occupied property. Commercial real estate loans typically require a loan to value of not greater than Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one-to-four family residential mortgage loans and consumer loans. Of primary concern in commercial real estate lending is the borrower’s and any guarantor’s creditworthiness and the feasibility and cash flow potential of the financed project. Additional considerations include: location, market and geographic concentration risks, loan to value, strength of guarantors and quality of tenants. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a higher level of risk than residential real estate loans, which could be caused by unfavorable conditions in the real estate market or the economy. To effectively monitor loans on income properties, the Company requires borrowers and loan guarantors, if any, to provide annual financial statements on commercial real estate loans and rent rolls where applicable. In reaching a decision on whether to make a commercial real estate loan, the Company considers and reviews a cash flow analysis of the borrower and guarantor, when applicable. In addition, the Company evaluates business cash flows, if applicable, net operating income of the property, the borrower’s expertise, credit history and the value of the underlying property. The Company has generally required that the properties securing these real estate loans have debt service coverage ratios, which is net cash flow before debt service to debt service, of at least Commercial loans are generally made on the basis of a business entity or individual borrower’s ability to make repayment from business cash flows or individual borrowers’ employment and other income. Commercial business loans tend to have a slightly higher risk than commercial real estate loans because collateral usually consists of business assets versus real estate. Further, any collateral securing such loans may depreciate over time and could be difficult to appraise and liquidate. As a result, repayment of commercial business loans may depend substantially on the success of the business itself. Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower, loan to value ratio and term. Residential mortgages may have amortizations up to 30 years. Consumer loans include installment loans, car loans, and overdraft lines of credit. These loans are both secured and unsecured. Consumer loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state insolvency laws, may limit the amount that can be recovered on such loans.
Off-balance sheet financial instruments	Off-balance sheet financial instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as interest and fees on loans and are included in interest income when paid. The Company records an allowance for off-balance sheet credit losses, if deemed necessary, separately as a liability.
Nonperforming assets	Nonperforming assets: Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans, troubled debt restructured loans and accruing loans past due 90 days or more. Past due status is based on contractual terms of the loan. Generally, a loan is classified as nonaccrual when it is determined that the collection of all or a portion of interest or principal is doubtful or when a default of interest or principal has existed for 90 days or more, unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual, interest accruals discontinue and uncollected accrued interest is reversed against income in the current period. Interest collections after a loan has been placed on nonaccrual status are credited to a suspense account until either the loan is returned to performing status or charged-off. The interest accumulated in the suspense account is credited to income over the remaining life of the loan using the effective yield method if the nonaccrual loan is returned to performing status. However, if the nonaccrual loan is charged-off, the accumulated interest is applied as a reduction to principal at the time the loan is charged-off. A nonaccrual loan is returned to performing status when the loan is current as to principal and interest and has performed according to the contractual terms for a minimum of six months. Troubled debt restructured loans (“TDRs”) 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 can generally fall within the following categories: ● Rate Modification — A modification in which the interest rate is changed to a below market rate. ● Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed. ● Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time. ● Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. ● Combination Modification — Any other type of modification, including the use of multiple categories above. 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 a 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 effected in the future. Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the allowance for loan losses. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense.
Allowance for loan losses	Allowance for loan losses: The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses account is maintained through a provision for loan losses charged to earnings. Loans, or portions of loans, determined to be confirmed losses are charged against the allowance account and subsequent recoveries, if any, are credited to the account. A loss is considered confirmed when information available at the financial statement date indicates the loan, or a portion thereof, is uncollectible. Nonaccrual, troubled debt restructured and loans deemed impaired at the time of acquisition are reviewed monthly to determine if carrying value reductions are warranted or if these classifications should be changed. Consumer loans are considered losses and charged-off when they are 120 days past due. Management evaluates the adequacy of the allowance for loan losses account quarterly. This assessment is based on past charge-off experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Regulators, in reviewing the loan portfolio as part of the scope of a regulatory examination, may require the Company to increase its allowance for loan losses or take other actions that would require the Company to increase its allowance for loan losses. The allowance for loan losses is maintained at a level believed to be adequate to absorb probable credit losses related to specifically identified loans, as well as probable incurred losses inherent in the remainder of the loan portfolio as of the balance sheet date. This consists of a specific allowance for impaired loans individually evaluated and a portion for loss contingencies on those loans collectively evaluated. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Factors considered by management in determining impairment include payment status, ability to pay and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company recognizes interest income on impaired loans, including the recording of cash receipts, for nonaccrual, restructured loans or accruing loans depending on the status of the impaired loan. Loans considered impaired are measured for impairment 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. If 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, is less than the recorded investment in the loan, a specific allowance for the loan will be established. The collectively evaluated portion of the allowance for loan losses relates to large pools of smaller-balance homogeneous loans and those identified loans considered not individually impaired having similar characteristics as these loan pools. Loss contingencies for each of the major loan pools are determined by applying a total loss factor to the current balance outstanding for each individual pool. The total loss factor is comprised of a historical loss factor using a loss migration method plus qualitative factors, which adjusts the historical loss factor for changes in trends, conditions and other relevant factors that may affect repayment of the loans in these pools as of the evaluation date. Loss migration involves determining the percentage of each pool that is expected to ultimately result in loss based on historical loss experience. The historical loss factor for each pool is a weighted average of the Company’s historical net charge-off ratio for the most recent rolling twelve quarters. Management adjusts these historical loss factors by qualitative factors that represents a number of environmental risks that may cause estimated credit losses associated with the current portfolio to differ from historical loss experience. These environmental risks include: (i) changes in lending policies and procedures including underwriting standards and collection, charge-off and recovery practices; (ii) changes in the composition and volume of the portfolio; (iii) changes in national, local and industry conditions, including the effects of such changes on the value of underlying collateral for collateral-dependent loans; (iv) changes in the volume and severity of classified loans, including past due, nonaccrual, troubled debt restructures and other loan modifications; (v) changes in the levels of, and trends in, charge-offs and recoveries; (vi) the existence and effect of any concentrations of credit and changes in the level of such concentrations; (vii) changes in the experience, ability and depth of lending management and other relevant staff; (viii) changes in the quality of the loan review system and the degree of oversight by the board of directors; and (ix) the effect of external factors such as competition, pandemics and legal and regulatory requirements on the level of estimated credit losses in the current loan portfolio. Each environmental risk factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Qualitative loss factors are based on specific quantitative and qualitative criteria that are used to assess the level of loss exposure arising from key sources of risk within the loan portfolio segments. Management believes the level of the allowance for loan losses was adequate to absorb probable credit losses inherent in the loan portfolio as of December 31, 2022.
Revenue from Contracts with Customers	Revenue from Contracts with Customers: The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The following is a discussion of revenues within the scope of the guidance: ● Service charges, fees, commissions and other . Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. The Company’s deposit services also include our ATM and debit card interchange revenue that is presented gross of the associated costs. Interchange revenue is generated by the Company’s deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. ● Commission and fees on fiduciary activities. Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when the Company has a right to invoice and are based on either the market value of the assets managed or the services provided. ● Wealth management income. Wealth management income includes fees and commissions charged when the Company arranges for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided. ● Merchant services income . Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of the Company’s merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin.
Premises, equipment and lease commitments	Premises, equipment and lease commitments: Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, to the expected terms of the leases, if shorter: Premises and leasehold improvements 7 – 40 years Furniture, fixtures and equipment 3 – 10 years A right-of-use asset and related lease liability is recognized on the Consolidated Statements of Financial Condition for operating leases Peoples Bank has entered to lease certain office facilities. These amounts are reported as components of premises and equipment and other liabilities. Short-term operating leases, which are leases with an original term of 12 months or less and do not have a purchase option that is likely to be exercised, are not recognized as part of the right-of-use asset or lease liability.
Goodwill and other intangible assets, net	Goodwill and other intangible assets, net: The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over their estimated useful lives of up to ten years. Goodwill and other intangible assets are tested for impairment annually at December 31st or when circumstances arise indicating impairment may have occurred. In making this assessment that impairment may have occurred, management considers a number of factors including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows, and current market data. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of impairment. Changes in economic and operating conditions, as well as other factors, could result in impairment in future periods. Any impairment losses arising from such testing would be reported in the consolidated statements of income and comprehensive income as a separate line item within operations. There were no impairment losses recognized as a result of periodic impairment testing in each of the three-years ended December 31, 2022.
Mortgage servicing rights	Mortgage servicing rights: Mortgage servicing rights are recognized as a separate asset upon the sale and servicing of mortgage loans by the Company. The Company calculates a mortgage servicing right by allocating the total costs incurred between the loan sold and the servicing right, based on their relative fair values at the date of the sale. Mortgage servicing rights are included in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. In addition, mortgage servicing rights are evaluated for impairment at each reporting date based on the fair value of those rights. For purposes of measuring impairment, the rights are stratified by loan type, term and interest rate. The amount of impairment recognized, through a valuation allowance, is the amount by which the mortgage servicing rights for a stratum exceed their fair value.
Restricted equity securities	Restricted equity securities: As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Company is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be redeemed by the FHLB or transferred to another member institution, and all redemptions of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. The carrying value of restricted stock is included in other assets.
Bank owned life insurance	Bank owned life insurance: The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance on certain employees or directors. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from increases in cash surrender value of the policies is included in noninterest income. The policies can be liquidated, if necessary, with associated tax costs. However, the Company intends to hold these policies and, accordingly, the Company has not provided for income taxes on the earnings from the increase in cash surrender value.
Pension and post-retirement benefit plans	Pension and post-retirement benefit plans: The Company sponsors a separate Employee Stock Ownership Plan (“ESOP”) and Retirement Profit Sharing 401(k) Plan and maintains Supplemental Executive Retirement Plans (“SERPs”) and an employee pension plan, which is currently frozen. The Company also provides post-retirement benefit plans other than pensions, consisting principally of life insurance benefits, to eligible retirees. The liabilities and annual income or expense of the Company’s pension and other post-retirement benefit plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of asset return, based on the market-related value of assets. The fair values of plan assets are determined based on prevailing market prices or estimated fair value for investments with no available quoted prices.
Statements of Cash Flows	Statements of Cash Flows: Cash and cash equivalents include cash on hand, cash items in the process of collection, noninterest-bearing and interest-bearing deposits in other banks and federal funds sold.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities: The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company has elected to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Fair value of financial instruments	Fair value of financial instruments: 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. 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. The following methods and assumptions were used by the Company to construct the summary table in Note 14 containing the fair values and related carrying amounts of financial instruments measured at fair value:
Investment securities	Investment securities: The fair values of marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model and quoted market prices.
Impaired loans	Impaired loans:
Interest rate swaps and floors	Interest rate swaps and floors:
Income taxes	Income taxes: Deferred income taxes are provided on the balance sheet method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the effective date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood of being realized on examination of more than 50 percent. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for any year in the three-year period ended December 31, 2022. As applicable, the Company recognizes accrued interest and penalties assessed as a result of a taxing authority examination through income tax expense. The Company files consolidated income tax returns in the United States of America and various state jurisdictions. With limited exception, the Company is no longer subject to federal and state income tax examinations by taxing authorities for years before 2019.
Other comprehensive income (loss)	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, the net change in derivative fair value and the unfunded benefit plan amounts which include prior service costs and unrealized net losses.
Earnings per share	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. Potential common shares that may be issued by the Company relate to awards of restricted stock units, and are determined using the treasury stock method. 2022 2021 2020 (Dollars in thousands, except percents) Basic Diluted Basic Diluted Basic Diluted Net income $ 38,090 $ 38,090 $ 43,519 $ 43,519 $ 29,354 $ 29,354 Average common shares outstanding 7,168,092 7,211,643 7,196,160 7,235,303 7,304,956 7,337,843 Earnings per share $ 5.31 $ 5.28 $ 6.05 $ 6.02 $ 4.02 $ 4.00
Stock-based compensation	Stock-based compensation: The Company recognizes all share-based payments to employees in the consolidated statements of income and comprehensive income based on their fair values. The fair value of such equity instruments is recognized as an expense in the consolidated financial statements as services are performed. The Company has granted restricted stock awards and units to employees at a price equal to the fair value of the shares underlying the awards at the date of grant. The fair value of restricted stock awards and units are equivalent to the fair value on the date of grant and is amortized over the vesting period.
Recent accounting standards and Recently Issued But Not Yet Effective Accounting Pronouncements	Recent accounting standards: Recently Issued But Not Yet Effective Accounting Pronouncements ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments”, as modified by subsequent ASUs, changes accounting for credit losses on loans receivable and debt securities from an incurred loss methodology to an expected credit loss methodology. Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Accordingly, ASU 2016-13 requires the use of forward-looking information to form credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, though the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The effect of implementing this ASU is recorded through a cumulative-effect adjustment to retained earnings. The Company has formed a committee and engaged outside vendors to implement a platform to utilize the alternative loss estimation methodologies in determining the impact that adoption of this standard will have on the Company’s financial condition and results of operations. The Company has adopted ASU 2016-13 effective January 1, 2023. The Company has largely completed its assessment of related processes, internal controls, and data sources and has developed, documented, and validated an advanced probability of default/loss given default model utilizing a third-party software provider. Our allowance for credit losses (“ACL”) estimate uses this model and estimation techniques based on historical loss experience, current borrower characteristics, current conditions, forecasts of future economic conditions and other relevant factors. The Company will use models and other loss estimation techniques that are responsive to changes in forecasted economic conditions to interpret borrower and economic factors in order to estimate the ACL. The Company also applies qualitative factors to account for information that may not be reflected in quantitatively derived results. Qualitative factors include: changes in lending policies and procedures; changes in the nature and volume of the loan portfolio; changes in management; changes in the quality of the Bank’s loan review process; the existence of any concentrations of credit and other external factors to ensure the ACL reflects our expected credit losses. The Company expects its ACL estimate to be sensitive to various factors such as current and forecasted economic conditions. The ACL includes off-balance sheet components such as unfunded loan commitments and loss estimates for held to maturity debt securities. Based upon the Company’s fourth quarter parallel run, assessment of the composition, characteristics and credit quality of the Company’s loan and investment securities portfolio, as well as the economic conditions in effect as of the adoption date, management estimates the adoption of ASU 2016-13 will result in a decrease of approximately $2.5 - $3.0 million to the Company’s ACL. The Company estimates that the impact of adoption to retained earnings, net of tax, will be an increase of approximately $2.1 to $2.5 million. ASU 2020-04, Reference Rate Reform (Topic 848) provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The guidance includes a general principle that permits an entity to consider contract modifications due to reference rate reform to be an event that does not require contract re-measurement at the modification date or reassessment of a previous accounting determination. Some specific optional expedients are as follows: ● Simplifies accounting for contract modifications, including modifications to loans receivable and debt, by prospectively adjusting the effective interest rate. ● Simplifies the assessment of hedge effectiveness and allows hedging relationships affected by reference rate reform to continue. The amendments in ASU 2020-04 are effective as of March 12, 2020 through December 31, 2022. The Company applied the amendments prospectively for applicable loan and other contracts within the effective period of ASU 2020-04.

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	12 Months Ended
Summary of significant accounting policies (Tables)	Dec. 31, 2022
Summary of significant accounting policies
Schedule of estimated useful life of related assets	Premises and leasehold improvements 7 – 40 years Furniture, fixtures and equipment 3 – 10 years
Schedule of earnings per share	2022 2021 2020 (Dollars in thousands, except percents) Basic Diluted Basic Diluted Basic Diluted Net income $ 38,090 $ 38,090 $ 43,519 $ 43,519 $ 29,354 $ 29,354 Average common shares outstanding 7,168,092 7,211,643 7,196,160 7,235,303 7,304,956 7,337,843 Earnings per share $ 5.31 $ 5.28 $ 6.05 $ 6.02 $ 4.02 $ 4.00

Investment securities (Tables)

Investment securities (Tables)	12 Months Ended
Investment securities (Tables)	Dec. 31, 2022
Investment Securities
Schedule of amortized cost and fair value of investment securities aggregated by investment category	December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 199,937 $ $ 19,640 $ 180,297 U.S. government-sponsored enterprises 16,955 585 16,370 State and municipals: Taxable 68,946 13,588 55,358 Tax-exempt 99,774 93 11,460 88,407 Residential mortgage-backed securities: U.S. government agencies 982 40 942 U.S. government-sponsored enterprises 141,231 20,112 121,119 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,128 544 11,584 Corporate debt securities 4,000 374 3,626 Total $ 543,953 $ 93 $ 66,343 $ 477,703 Held-to-maturity: Tax-exempt state and municipals $ 11,237 $ 1 $ 841 $ 10,397 Residential mortgage-backed securities: U.S. government agencies 17,304 3,016 14,288 U.S. government-sponsored enterprises 62,638 10,760 51,878 Total $ 91,179 $ 1 $ 14,617 $ 76,563 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 193,849 $ 107 $ 2,382 $ 191,574 U.S. government-sponsored enterprises 33,435 343 33,778 State and municipals: Taxable 69,066 994 1,082 68,978 Tax-exempt 96,412 2,452 614 98,250 Residential mortgage-backed securities: U.S. government agencies 1,790 53 1,843 U.S. government-sponsored enterprises 109,018 939 2,925 107,032 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,542 406 12,948 Corporate debt securities 3,000 82 2,918 Total $ 519,112 $ 5,294 $ 7,085 $ 517,321 Held-to-maturity: Tax-exempt state and municipals $ 11,476 $ 126 $ 56 $ 11,546 Residential mortgage-backed securities: U.S. government agencies 18,802 392 18,410 U.S. government-sponsored enterprises 40,935 3 448 40,490 Total $ 71,213 $ 129 $ 896 $ 70,446
Summary of unrealized and realized gains and losses	(Dollars in thousands) 2022 2021 Net (loss) gain recognized during the period on equity securities $ (31) $ 2 Unrealized gain recognized during the reporting period on equity securities still held at the reporting date $ (31) $ 2
Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position	December 31, 2022 Less Than 12 Months 12 Months or Greater Total Number of Number of Number of Securities in a Fair Unrealized Securities in a Fair Unrealized Securities in a Fair Unrealized (Dollars in thousands) Loss Position Value Losses Loss Position Value Losses Loss Position Value Losses U.S. Treasury securities 5 $ 23,700 $ 1,887 40 $ 156,597 $ 17,753 45 $ 180,297 $ 19,640 U.S. government-sponsored enterprises 4 14,104 197 1 2,266 388 5 16,370 585 State and municipals: Taxable 21 19,919 2,908 45 34,464 10,680 66 54,383 13,588 Tax-exempt 39 30,973 1,690 84 59,664 10,611 123 90,637 12,301 Residential mortgage-backed securities: U.S. government agencies 5 904 39 4 14,326 3,017 9 15,230 3,056 U.S. government-sponsored enterprises 19 57,166 2,029 25 115,831 28,843 44 172,997 30,872 Commercial mortgage-backed securities: U.S. government agencies U.S. government-sponsored enterprises 4 11,584 544 0 0 0 4 11,584 544 Corporate debt securities 1 953 47 5 2,673 327 6 3,626 374 Total 98 $ 159,303 $ 9,341 204 $ 385,821 $ 71,619 302 $ 545,124 $ 80,960 December 31, 2021 Less Than 12 Months 12 Months or Greater Total Number of Number of Number of Securities in a Fair Unrealized Securities in a Fair Unrealized Securities in a Fair Unrealized (Dollars in thousands) Loss Position Value Losses Loss Position Value Losses Loss Position Value Losses U.S. Treasury securities 42 $ 179,974 $ 2,382 $ $ 42 $ 179,974 $ 2,382 U.S. government-sponsored enterprises State and municipals: Taxable 27 26,827 718 8 8,008 364 35 34,835 1,082 Tax-exempt 61 38,693 357 2 10,319 313 63 49,012 670 Residential mortgage-backed securities: U.S. government agencies 3 18,398 392 3 18,398 392 U.S. government-sponsored enterprises 13 77,875 1,454 7 48,276 1,919 20 126,151 3,373 Commercial mortgage-backed securities: U.S. government-sponsored enterprises Corporate debt securities 4 2,449 51 1 470 31 5 2,919 82 Total 150 $ 344,216 $ 5,354 18 $ 67,073 $ 2,627 168 $ 411,289 $ 7,981
Available-for-Sale Securities
Investment Securities
Schedule of maturity distribution of fair value	Fair (Dollars in thousands) Value Within one year $ 15,601 After one but within five years 168,324 After five but within ten years 72,917 After ten years 84,933 341,775 Mortgage-backed and other amortizing securities 135,928 Total $ 477,703
Held-to-maturity Securities.
Investment Securities
Schedule of maturity distribution of fair value	Amortized Fair (Dollars in thousands) Cost Value After five but within ten years $ 8,884 $ 8,227 After ten years 2,353 2,170 11,237 10,397 Mortgage-backed securities 79,942 66,166 Total $ 91,179 $ 76,563

Loans, net and allowance for _2

Loans, net and allowance for loan losses (Tables)	12 Months Ended
Loans, net and allowance for loan losses (Tables)	Dec. 31, 2022
Loans, net and allowance for loan losses
Schedule of major classifications of loans outstanding	(Dollars in thousands) December 31, 2022 December 31, 2021 Commercial Taxable $ 377,215 $ 424,455 Non-taxable 222,043 188,672 Total 599,258 613,127 Real estate Commercial 1,709,827 1,343,539 Residential 330,728 297,624 Total 2,040,555 1,641,163 Consumer Indirect Auto 76,461 65,791 Consumer Other 13,842 9,092 Total 90,303 74,883 Total $ 2,730,116 $ 2,329,173
Schedule of changes in allowance for loan losses account by major classification of loans	December 31, 2022 Real estate (Dollars in thousands) Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 8,453 $ 15,928 $ 3,209 $ 793 $ 28,383 Charge-offs (161) (284) (31) (311) (787) Recoveries 40 110 4 171 325 Provisions (credits) (2,720) 2,161 (110) 220 (449) Ending balance $ 5,612 $ 17,915 $ 3,072 $ 873 $ 27,472 Ending balance: individually evaluated for impairment 19 21 40 Ending balance: collectively evaluated for impairment $ 5,593 $ 17,915 $ 3,051 $ 873 $ 27,432 Loans receivable: Ending balance $ 599,258 $ 1,709,827 $ 330,728 $ 90,303 $ 2,730,116 Ending balance: individually evaluated for impairment 98 2,063 1,760 3,921 Ending balance: collectively evaluated for impairment $ 599,160 $ 1,707,764 $ 328,968 $ 90,303 $ 2,726,195 December 31, 2021 Real estate (Dollars in thousands) Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Charge-offs (492) (252) (24) (188) (956) Recoveries 89 68 7 81 245 Provisions 122 1,553 97 (22) 1,750 Ending balance $ 8,453 $ 15,928 $ 3,209 $ 793 $ 28,383 Ending balance: individually evaluated for impairment 40 109 26 175 Ending balance: collectively evaluated for impairment $ 8,413 $ 15,819 $ 3,183 $ 793 $ 28,208 Loans receivable: Ending balance $ 613,127 $ 1,343,539 $ 297,624 $ 74,883 $ 2,329,173 Ending balance: individually evaluated for impairment 199 2,890 1,273 4,362 Ending balance: collectively evaluated for impairment $ 612,928 $ 1,340,649 $ 296,351 $ 74,883 $ 2,324,811 December 31, 2020 Real estate (Dollars in thousands) Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (2,771) (144) (247) (317) (3,479) Recoveries 525 16 57 148 746 Provisions (credit) 4,092 3,191 93 24 7,400 Ending balance $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Ending balance: individually evaluated for impairment 947 180 75 1,202 Ending balance: collectively evaluated for impairment $ 7,787 $ 14,379 $ 3,054 $ 922 $ 26,142 Loans receivable: Ending balance $ 679,286 $ 1,137,990 $ 277,414 $ 83,292 $ 2,177,982 Ending balance: individually evaluated for impairment 4,297 3,952 1,546 9,795 Ending balance: collectively evaluated for impairment $ 674,989 $ 1,134,038 $ 275,868 $ 83,292 $ 2,168,187
Schedule of major classification of loans portfolio summarized by credit quality	December 31, 2022 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Commercial $ 590,621 $ 7,822 $ 815 $ $ 599,258 Real estate: Commercial 1,699,041 7,509 3,277 1,709,827 Residential 329,098 1,630 330,728 Consumer 90,020 283 90,303 Total $ 2,708,780 $ 15,331 $ 6,005 $ $ 2,730,116 December 31, 2021 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Commercial $ 611,151 $ 896 $ 1,080 $ $ 613,127 Real estate: Commercial 1,324,646 13,939 4,954 1,343,539 Residential 294,892 333 2,399 297,624 Consumer 74,744 139 74,883 Total $ 2,305,433 $ 15,168 $ 8,572 $ $ 2,329,173
Schedule of information concerning nonaccrual loans by major loan classification	(Dollars in thousands) December 31, 2022 December 31, 2021 Commercial $ 86 $ 185 Real estate: Commercial 1,155 1,793 Residential 562 694 Consumer 232 139 Total $ 2,035 $ 2,811
Schedule of major classifications of loans by past due status	December 31, 2022 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and (Dollars in thousands) Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 137 $ 38 $ 86 $ 261 $ 598,997 $ 599,258 $ Real estate: Commercial 102 2 334 438 1,709,389 1,709,827 Residential 1,162 128 988 2,278 328,450 330,728 748 Consumer 690 199 120 1,009 89,294 90,303 Total $ 2,091 $ 367 $ 1,528 $ 3,986 $ 2,726,130 $ 2,730,116 $ 748 December 31, 2021 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and (Dollars in thousands) Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 101 $ 155 $ 158 $ 414 $ 612,713 $ 613,127 $ Real estate: Commercial 768 423 834 2,025 1,341,514 1,343,539 Residential 1,552 207 265 2,024 295,600 297,624 13 Consumer 477 163 51 691 74,192 74,883 Total $ 2,898 $ 948 $ 1,308 $ 5,154 $ 2,324,019 $ 2,329,173 $ 13
Summarized information concerning impaired loans	December 31, 2022 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 78 $ 421 $ $ 119 $ 7 Real estate: Commercial 2,063 2,654 2,753 59 Residential 1,520 1,733 1,036 28 Consumer 232 244 218 Total 3,893 5,052 4,126 94 With an allowance recorded: Commercial 20 20 19 27 2 Real estate: Residential 240 244 21 286 12 Total 260 264 40 313 14 Total impaired loans Commercial 98 441 19 146 9 Real estate: Commercial 2,063 2,654 2,753 59 Residential 1,760 1,977 21 1,322 40 Consumer 232 244 218 Total $ 4,153 $ 5,316 $ 40 $ 4,439 $ 108 December 31, 2021 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 158 $ 481 $ $ 964 $ 13 Real estate: Commercial 2,376 3,120 2,719 22 Residential 873 1,073 1,016 19 Consumer 139 148 100 Total 3,546 4,822 4,799 54 With an allowance recorded: Commercial 41 41 40 1,091 15 Real estate: Commercial 513 543 109 802 22 Residential 401 401 26 436 13 Consumer Total 955 985 175 2,329 50 Total impaired loans Commercial 199 522 40 2,055 28 Real estate: Commercial 2,889 3,663 109 3,521 44 Residential 1,274 1,474 26 1,452 32 Consumer 139 148 100 Total $ 4,501 $ 5,807 $ 175 $ 7,128 $ 104 December 31, 2020 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,251 $ 3,421 $ $ 2,915 $ 30 Real estate: Commercial 2,372 2,964 2,148 28 Residential 1,086 1,263 1,223 21 Consumer 111 121 167 Total 5,820 7,769 6,453 79 With an allowance recorded: Commercial 2,046 2,094 947 2,038 17 Real estate: Commercial 1,580 1,710 180 1,687 36 Residential 460 482 75 624 13 Consumer Total 4,086 4,286 1,202 4,349 66 Total impaired loans Commercial 4,297 5,515 947 4,953 47 Real estate: Commercial 3,952 4,674 180 3,835 64 Residential 1,546 1,745 75 1,847 34 Consumer 111 121 167 Total $ 9,906 $ 12,055 $ 1,202 $ 10,802 $ 145
Summary loans whose terms have been modified resulting in troubled debt restructurings	December 31, 2020 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded (Dollars in thousands except number of contracts) of Contracts Investment Recorded Investment Investment Commercial 1 $ 12 $ 12 $ 5 Commercial real estate 3 1,073 1,073 1,046 Total 4 $ 1,085 $ 1,085 $ 1,051

Off-balance sheet financial i_2

Off-balance sheet financial instruments (Tables)	12 Months Ended
Off-balance sheet financial instruments (Tables)	Dec. 31, 2022
Off-balance sheet financial instruments.
Summary of contractual amounts of off-balance sheet commitments	(Dollars in thousands) 2022 2021 Commitments to extend credit $ 553,337 $ 431,011 Unused portions of lines of credit 78,406 64,108 Standby letters of credit 57,626 58,254 $ 689,369 $ 553,373

Premises and equipment, net (Ta

Premises and equipment, net (Tables)	12 Months Ended
Premises and equipment, net (Tables)	Dec. 31, 2022
Premises and equipment, net
Summary of premises and equipment	(Dollars in thousands) 2022 2021 Land $ 7,302 $ 7,255 Premises and leasehold improvements 55,865 50,426 Right-of-use assets 7,980 8,563 Furniture, fixtures and equipment 20,626 19,096 Gross premises and equipment 91,773 85,340 Less: accumulated depreciation 36,106 33,838 Net premises and equipment $ 55,667 $ 51,502

Operating lease commitments a_2

Operating lease commitments and contingencies (Tables)	12 Months Ended
Operating lease commitments and contingencies (Tables)	Dec. 31, 2022
Operating lease commitments and contingencies
Summary of future minimum annual rent commitments under various operating leases	(Dollars in thousands) 2023 $ 736 2024 669 2025 688 2026 691 2027 617 Thereafter 7,297 Total future minimum lease payments 10,698 Less amount representing interest (2,398) Present value of future minimum lease payments $ 8,300

Other assets (Tables)

Other assets (Tables)	12 Months Ended
Other assets (Tables)	Dec. 31, 2022
Other assets
Schedule of components of other assets	(Dollars in thousands) December 31, 2022 December 31, 2021 Other real estate owned $ 121 $ 609 Investment in low income housing partnership 5,446 5,900 Mortgage servicing rights 914 882 Restricted equity securities (FHLB and other) 9,630 4,045 Interest rate floor 1 844 Interest rate swaps 21,794 9,026 Other assets 8,165 6,395 Total $ 46,071 $ 27,701

Deposits (Tables)

Deposits (Tables)	12 Months Ended
Deposits (Tables)	Dec. 31, 2022
Deposits.
Summary of major components of interest-bearing and noninterest-bearing deposits	(Dollars in thousands) December 31, 2022 December 31, 2021 Interest-bearing deposits: Money market accounts $ 685,323 $ 588,245 Now accounts 772,712 851,086 Savings accounts 523,931 491,796 Time deposits less than $250 199,136 203,719 Time deposits $250 or more 92,731 90,795 Total interest-bearing deposits 2,273,833 2,225,641 Noninterest-bearing deposits 772,765 737,756 Total deposits $ 3,046,598 $ 2,963,397
Schedule of aggregate amounts of maturities for all time deposits	(Dollars in thousands) 2023 $ 197,015 2024 50,037 2025 8,502 2026 8,962 2027 19,980 Thereafter 7,371 $ 291,867

Short-term borrowings (Tables)

Short-term borrowings (Tables)	12 Months Ended
Short-term borrowings (Tables)	Dec. 31, 2022
Short-term borrowings
Summary of short-term borrowings	At and for the year ended December 31, 2022 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End (Dollars in thousands, except percents) Balance Balance Balance the Year of the Period Other borrowings $ 14,530 $ 10,033 $ 16,100 2.10 % 4.33 % FHLB advances 100,400 32,647 125,975 2.73 4.45 Total short-term borrowings $ 114,930 $ 42,680 $ 142,075 2.58 % 4.43 % At and for the year ended December 31, 2021 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End (Dollars in thousands, except percents) Balance Balance Balance the Year of the Year FHLB advances $ $ 13,973 $ 50,000 0.56 % % At and for the year ended December 31, 2020 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End (Dollars in thousands, except percents) Balance Balance Balance the Year of the Year FHLB advances $ 50,000 $ 83,716 $ 179,199 1.01 % 0.40 %

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
Long-term debt (Tables)	Dec. 31, 2022
Long-term debt.
Schedule of long-term debt consisting of advances	Interest Rate (Dollars in thousands, except percents) Fixed December 31, 2022 December 31, 2021 March 2023 4.69 % $ 555 2,711 $ 555 $ 2,711
Schedule of maturities of long-term debt	(Dollars in thousands) 2023 $ 555 $ 555

Fair value of financial instr_2

Fair value of financial instruments (Tables)	12 Months Ended
Fair value of financial instruments (Tables)	Dec. 31, 2022
Fair value of financial instruments
Schedule of assets and liabilities measured at fair value on a recurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2022 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 180,297 $ 180,297 $ $ U.S. government-sponsored enterprises 16,370 16,370 State and municipals: Taxable 55,358 55,358 Tax-exempt 88,407 88,407 Mortgage-backed securities: U.S. government agencies 942 942 U.S. government-sponsored enterprises 132,703 132,703 Corporate debt securities 3,626 3,626 Common equity securities 110 110 Total investment securities $ 477,813 $ 180,407 $ 297,406 $ Loan held for sale $ $ Interest rate floor-other assets $ 1 $ 1 Interest rate swap-other assets $ 21,794 $ 21,794 Interest rate swap-other liabilities $ (21,466) $ (21,466) Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2021 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 191,574 $ 191,574 $ $ U.S. government-sponsored enterprises 33,778 33,778 State and municipals: Taxable 68,978 68,978 Tax-exempt 98,250 98,250 Mortgage-backed securities: U.S. government agencies 1,843 1,843 U.S. government-sponsored enterprises 119,980 119,980 Corporate debt securities 2,918 2,918 Common equity securities 140 140 Total investment securities $ 517,461 $ 191,714 $ 325,747 $ Loan held for sale $ 408 $ 408 Interest rate floor-other assets $ 844 $ 844 Interest rate swap-other assets $ 8,767 $ 8,767 Interest rate swap-other liabilities $ (8,811) $ (8,811)
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 (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2022 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 220 $ $ $ 220 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2021 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 780 $ $ $ 780 Other real estate owned 487 487
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis	Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands, except percents) Fair Value Range December 31, 2022 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 220 Appraisal of collateral Appraisal adjustments 21.6% to 97.0% (77.7)% Liquidation expenses 3.0% to 6.0% (4.9)% Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands, except percents) Fair Value Range December 31, 2021 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 780 Appraisal of collateral Appraisal adjustments 6.4% to 97.0% (65.2)% Liquidation expenses 3.0% to 6.0% (5.1)% Other real estate owned $ 487 Appraisal of collateral Appraisal adjustments 35.9% to 35.9% (35.9)% Liquidation expenses 3.0% to 6.0% (5.0)%
Schedule of carrying and fair values of financial instruments	Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Fair Assets Inputs Inputs December 31, 2022 Value Value (Level 1) (Level 2) (Level 3) Financial assets: Cash and due from banks $ 37,868 $ 37,868 $ 37,868 $ $ Investment securities: Available-for-sale 477,703 477,703 180,297 297,406 Common equity securities 110 110 110 Held-to-maturity 91,179 76,563 76,563 Loans held for sale Net loans 2,702,644 2,562,780 2,562,780 Accrued interest receivable 11,715 11,715 11,715 Mortgage servicing rights 914 1,762 1,762 Restricted equity securities (FHLB and other) 9,630 9,630 9,630 Interest rate floor 1 1 1 Interest rate swaps 21,794 21,794 21,794 Total $ 3,353,558 $ 3,199,926 Financial liabilities: Deposits $ 3,046,598 $ 3,035,615 $ $ 3,035,615 $ Short-term borrowings 114,930 114,743 114,743 Long-term debt 555 555 555 Subordinated debentures 33,000 53,998 53,998 Accrued interest payable 903 903 903 Interest rate swaps 21,466 21,466 21,466 Total $ 3,217,452 $ 3,227,280 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Fair Assets Inputs Inputs December 31, 2021 Value Value (Level 1) (Level 2) (Level 3) Financial assets: Cash and due from banks $ 279,933 $ 279,933 $ 279,933 $ $ Investment securities: Available-for-sale 517,321 517,321 191,574 325,747 Common equity securities 140 140 140 Held-to-maturity 71,213 70,446 70,446 Loans held for sale 408 408 408 Net loans 2,300,790 2,261,586 2,261,586 Accrued interest receivable 8,528 8,528 8,528 Mortgage servicing rights 882 1,357 1,357 Restricted equity securities (FHLB and other) 4,045 4,045 4,045 Interest rate floor 844 844 844 Interest rate swaps 8,767 8,767 8,767 Total $ 3,192,871 $ 3,153,375 Financial liabilities: Deposits $ 2,963,397 $ 2,963,547 $ $ 2,963,547 $ Long-term debt 2,711 2,778 2,778 Subordinated debentures 33,000 32,337 32,337 Accrued interest payable 408 408 408 Interest rate swaps 8,811 8,811 8,811 Total $ 3,008,327 $ 3,007,881

Derivatives and hedging activ_2

Derivatives and hedging activities (Tables)	12 Months Ended
Derivatives and hedging activities (Tables)	Dec. 31, 2022
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 December 31, 2022 (1) As of December 31, 2021 (1) (2) As of December 31, 2022 As of December 31, 2021 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet (Dollars in thousands) Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1 Other Assets $ 844 $ $ Total derivatives designated as hedging instruments $ 1 $ 844 $ $ Derivatives not Interest Rate Swaps (2) $ 382,476 Other Assets $ 22,195 Other Assets $ 9,026 Other Liabilities $ 21,466 Other Liabilities $ 8,811 Total derivatives not $ 22,195 $ 9,026 $ 21,466 $ 8,811 (1) Amounts include accrued interest of $0.4 million and $0.3 million at December 31, 2022 and 2021. (2) Notional amount of interest rate swaps at December 31, 2021 were $392.7 million.
Schedule of effect of fair value and cash flow hedge accounting on accumulated other comprehensive income	Location of Amount of Amount of Gain or (Loss) Gain Amount of Amount of (Loss) Amount of Recognized from Amount of Reclassified (Loss) (Loss) Recognized in (Loss) Accumulated Gain from Accumulated Reclassified Recognized in OCI Included Recognized in Other Comprehensive Reclassified OCI into Income from Accumulated OCI on Component OCI Excluded Income into from Accumulated Included Component OCI into Income (Dollars in thousands) Derivative December 31, 2022 Component Income OCI into Income December 31, 2022 Excluded Component Derivatives in Cash Flow Hedging Relationships: Cash Flow Swap $ $ $ Other expense $ $ $ Interest Rate Floor () (515) (497) (18) Interest Income 212 276 (64) Total $ (515) $ (497) $ (18) $ 212 $ 276 $ (64) Location of Amount of Amount of Gain or (Loss) Gain (Loss) Amount of Amount of Gain (Loss) Amount of Recognized from Amount of Reclassified (Loss) (Loss) Recognized in (Loss) Accumulated Gain from Accumulated Reclassified Recognized in OCI Included Recognized in Other Comprehensive Reclassified OCI into Income from Accumulated OCI on Component OCI Excluded Income into from Accumulated Included Component OCI into Income (Dollars in thousands) Derivative December 31, 2021 Component Income OCI into Income December 31, 2021 Excluded Component Derivatives in Cash Flow Hedging Relationships : Cash Flow Swap $ 401 $ 401 $ Interest Expense $ (23) $ (23) $ Cash Flow Swap Other Expense (25) (25) Interest Rate Floor () (228) (245) 17 Interest Income 543 607 (64) Total $ 173 $ 156 $ 17 $ 495 $ 559 $ (64) * 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 For the twelve months ended December 31, 2022 2022 2021 2021 (Dollars in thousands) 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 $ 212 $ $ 543 $ (48) 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 212 543 (23) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring (25) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component 276 607 (48) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component (64) (64)
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Gain Amount of Gain Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Twelve Months Ended Twelve Months Ended (Dollars in thousands) Derivative December 31, 2022 December 31, 2021 Derivatives Not Designated as Hedging Instruments: Interest Rate Swaps Interest rate swap revenue $ 516 $ 136 Other Contracts 5 Total $ 521 $ 136 Fee Income Fee income $ 106 $ 623
Schedule of offsetting derivatives	Offsetting of Derivative Assets as of December 31, 2022 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 (Dollars in thousands) Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 22,196 $ $ 22,196 $ $ 14,530 $ 7,666 Offsetting of Derivative Liabilities as of December 31, 2022 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Liabilities Recognized Offset in the presented in the Financial Cash Collateral Net (Dollars in thousands) Liabilities Balance Sheet Balance Sheet Instruments Paid* Amount Derivatives $ 21,466 $ $ 21,466 $ 21,466 $ $ *Cash collateral of $7,830 was paid but not presented as an offset above. Offsetting of Derivative Assets as of December 31, 2021 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 $ 9,870 $ $ 9,870 $ 3,218 $ $ 6,652 Offsetting of Derivative Liabilities as of December 31, 2021 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Liabilities Recognized Offset in the presented in the Financial Cash Collateral Net Liabilities Balance Sheet Balance Sheet Instruments Paid Amount Derivatives $ 8,818 $ $ 8,818 $ 3,218 $ 5,600 $

Stock plans (Tables)

Stock plans (Tables)	12 Months Ended
Stock plans (Tables)	Dec. 31, 2022
Stock plans
Schedule of activity related to restricted stock	(Dollars in thousands) 2022 2021 2020 Nonvested, January 1 36,281 31,923 25,984 Granted shares 19,787 19,818 16,269 Vested shares 16,403 15,460 8,455 Forfeited shares 195 1,875 Nonvested, December 31 39,470 36,281 31,923

Employee benefit plans (Tables)

Employee benefit plans (Tables)	12 Months Ended
Employee benefit plans (Tables)	Dec. 31, 2022
Employee benefit plans
Summary of pension and postretirement life insurance plans	Pension Benefits (Dollars in thousands) 2022 2021 Change in benefit obligation: Benefit obligation, beginning $ 18,066 $ 19,113 Interest cost 456 419 Change in experience gain 26 (49) Change in actuarial assumptions (3,899) (603) Benefits paid (857) (814) Benefit obligation, ending 13,792 18,066 Change in plan assets: Fair value of plan assets, beginning 19,257 17,628 Actual return on plan assets (2,294) 2,443 Employer contributions Benefits paid (857) (814) Fair value of plan assets, ending 16,106 19,257 Funded status at end of year $ 2,314 $ 1,191
Schedule of amounts recognized in balance sheet	Pension Benefits (Dollars in thousands) 2022 2021 (Other Assets)/Other Liabilities $ (2,314) $ (1,190) Amounts recognized in the accumulated other comprehensive income (loss) consist of: Net actuarial gain (5,499) (5,868) Deferred taxes 1,184 1,232 Net amount recognized $ (4,315) $ (4,636)
Schedule of components of net periodic benefit cost	Pension Benefits (Dollars in thousands) 2022 2021 2020 Net periodic pension income: Interest cost $ 456 $ 419 $ 544 Expected return on plan assets (1,407) (1,288) (1,236) Amortization of unrecognized net loss 198 301 218 Net periodic pension income: (753) (568) (474) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) 456 419 544 Deferred tax (96) (88) (114) Total recognized in other comprehensive income (loss) 360 331 430 Total recognized in net period pension cost and other comprehensive income (loss) $ (393) $ (237) $ (44)
Schedule of weighted-average assumptions used to determine benefit obligations and related expenses	Pension Benefits 2022 2021 2020 Discount rate: Obligation 4.93 % 2.59 % 2.25 % Expense 2.59 2.25 3.25 Expected long-term return on plan assets 7.50 % 7.50 % 7.50 %
Schedule of pension plan weighted-average asset allocations	2022 2021 Asset Category: Cash and cash equivalents 4.7 % 4.8 % Equity securities 60.3 67.4 Corporate bonds 19.5 19.6 U.S. government securities 15.5 8.2 100.0 % 100.0 %
Schedule of fair value measurement of pension plan assets	December 31, 2022 Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 759 $ 759 $ $ Equity securities: U.S. large cap 7,365 7,365 International 2,338 2,338 Fixed income securities: U.S. Treasuries 511 511 U.S. government agencies 1,991 1,991 Corporate bonds 3,142 3,142 Total $ 16,106 $ 10,462 $ 5,644 $ December 31, 2021 Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 918 $ 918 $ $ Equity securities: U.S. large cap 11,940 11,940 International 1,039 1,039 Fixed income securities: U.S. Treasuries 214 214 U.S. government agencies 1,371 1,371 Corporate bonds 3,775 3,775 Total $ 19,257 $ 13,897 $ 5,360 $
Schedule of expected benefit payments	(Dollars in thousands) Pension Benefits 2023 $ 907 2024 955 2025 987 2026 1,009 2027 1,016 Thereafter 4,959

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
Income taxes (Tables)	Dec. 31, 2022
Income taxes
Schedule of current and deferred amounts of the provision for income taxes expense (benefit0	(Dollars in thousands) 2022 2021 2020 Current $ 6,665 $ 9,548 $ 6,600 Deferred 611 450 (1,779) Total income tax expense $ 7,276 $ 9,998 $ 4,821
Schedule of the components of the net deferred tax asset	(Dollars in thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 5,916 $ 5,960 Lease liability 1,787 1,846 Defined benefit plan 1,798 Deferred compensation 860 884 Deferred loan fees 1,215 Deferred loan fees and costs 59 Investment securities available-for-sale 14,266 379 Other 196 86 Total 24,882 10,370 Deferred tax liabilities: Lease right-of-use assets 1,718 1,798 Premises and equipment, net 1,692 1,441 Merger related accounting 472 572 Deferred loan costs 885 Defined benefit plan 75 Investment securities available-for-sale 1,872 Other 389 244 Total 6,143 5,015 Net deferred tax asset $ 18,739 $ 5,355
Schedule of the reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate	2022 2021 2020 (Dollars in thousands, except percents) Amount % Amount % Amount % Provision for income tax at statutory rate $ 9,527 21.00 % $ 11,239 21.00 % $ 7,177 21.00 % State tax, net of federal benefit 216 0.63 475 0.89 Tax exempt interest (1,400) (3.09) (1,194) (2.23) (1,032) (3.02) Bank owned life insurance income (205) (0.45) (119) (0.22) (299) (0.87) Residential housing program tax credits (911) (2.01) (1,091) (2.04) (1,094) (3.20) Other, net 49 (0.04) 688 1.29 69 0.19 Total $ 7,276 16.04 % $ 9,998 18.69 % $ 4,821 14.10 %

Parent Company financial stat_2

Parent Company financial statements (Tables)	12 Months Ended
Parent Company financial statements (Tables)	Dec. 31, 2022
Parent Company financial statements
Condensed Balance Sheets	(Dollars in thousands) 2022 2021 Assets: Cash and cash equivalents $ 359 $ 4,044 Equity securities 110 140 Investment in bank subsidiary 346,734 368,427 Other assets 1,295 703 Total assets $ 348,498 $ 373,314 Liabilities and Stockholders’ Equity: Subordinated debt $ 33,000 $ 33,000 Accrued interest payable 148 148 Other liabilities 40 Stockholders’ equity 315,350 340,126 Total liabilities and stockholders’ equity $ 348,498 $ 373,314
Condensed Statements of Income and Comprehensive Income	(Dollars in thousands) 2022 2021 2020 Income: Dividends from subsidiaries $ 11,325 $ 17,593 $ 10,518 Other income 3 4 8 Net gain realized on sale of equity securities 29 Unrealized holding gains (losses) on equity securities (31) 2 (35) Total income 11,297 17,599 10,520 Expense: Interest expense on subordinated debt 1,774 1,774 1,035 Other expenses 1,188 222 200 Total expenses 2,962 1,996 1,235 Income before taxes and undistributed income 8,335 15,603 9,285 Income tax benefit (624) (410) (255) Income before undistributed income of subsidiaries 8,959 16,013 9,540 Equity in undistributed net income of subsidiaries 29,131 27,506 19,814 Net income $ 38,090 $ 43,519 $ 29,354
Condensed Statements of Cash Flows	(Dollars in thousands) 2022 2021 2020 Cash flows from operating activities: Net income $ 38,090 $ 43,519 $ 29,354 Adjustments: Net losses (gains) on investment securities 31 (2) 6 Undistributed net income of subsidiaries (29,131) (27,506) (19,814) Increase in other assets (591) (429) (255) Increase (decrease) in other liabilities (40) 148 Stock based compensation 534 546 570 Net cash provided by operating activities 8,893 16,128 10,009 Cash flows from investing activities: Sale of equity securities 279 Net cash provided by investing activities 279 Cash flows from financing activities: Proceeds from subordinated debentures 33,000 Investment in subsidiary (30,000) Retirement of common stock (1,253) (2,361) (6,893) Cash dividends paid (11,325) (10,792) (10,518) Net cash used in financing activities (12,578) (13,153) (14,411) Increase (decrease) in cash and cash equivalents (3,685) 2,975 (4,123) Cash and cash equivalents at beginning of year 4,044 1,069 5,192 Cash and cash equivalents at end of year $ 359 $ 4,044 $ 1,069

Regulatory matters (Tables)

Regulatory matters (Tables)	12 Months Ended
Regulatory matters (Tables)	Dec. 31, 2022
Regulatory matters
Schedule of actual capital ratios and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions	December 31, 2022 Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands, except percents) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Consolidated $ 308,211 11.13 % $ 124,569 4.50 % $ % Peoples Bank 339,596 12.27 124,563 4.50 179,924 6.50 Tier 1 capital to risk-weighted assets: Consolidated 308,211 11.13 166,093 6.00 Peoples Bank 339,596 12.27 166,083 6.00 221,444 8.00 Total capital to risk-weighted assets: Consolidated 335,683 12.13 221,457 8.00 Peoples Bank 367,068 13.26 221,444 8.00 276,806 10.00 Tier 1 capital to average assets: Consolidated 308,211 9.03 136,559 4.00 Peoples Bank 339,596 9.69 140,167 4.00 175,209 5.00 December 31, 2021 Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands, except percents) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Consolidated $ 281,802 12.32 % $ 102,949 4.50 % $ % Peoples Bank 310,102 13.76 101,449 4.50 146,538 6.50 Tier 1 capital to risk-weighted assets: Consolidated 281,802 12.32 137,266 6.00 Peoples Bank 310,102 13.76 135,266 6.00 180,355 8.00 Total capital to risk-weighted assets: Consolidated 310,185 13.56 183,021 8.00 Peoples Bank 338,284 15.01 180,355 8.00 225,443 10.00 Tier 1 capital to average assets: Consolidated 281,802 9.16 123,013 4.00 Peoples Bank 310,102 9.58 129,476 4.00 161,845 5.00

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss)
Schedule of components of accumulated other comprehensive income (loss)	(Dollars in thousands) December 31, 2022 December 31, 2021 Net unrealized loss on investment securities available-for-sale $ (66,250) $ (1,791) Income tax benefit (14,266) (376) Net of income taxes (51,984) (1,415) Benefit plan adjustments (5,499) (5,868) Income tax benefit (1,184) (1,232) Net of income taxes (4,315) (4,636) Derivative adjustments (47) 680 Income tax (benefit) expense (10) 143 Net of income taxes (37) 537 Accumulated other comprehensive loss $ (56,336) $ (5,514)
Schedule of other comprehensive income (loss) and related tax effects	Other comprehensive income (loss) and related tax effects for the years ended December 31, 2022, 2021 and 2020 are as follows: (Dollars in thousands) 2022 2021 2020 Unrealized loss on investment securities available-for-sale $ (66,435) $ (11,487) $ 8,779 Net loss (gain) on the sale of investment securities available-for-sale (1) 1,976 (918) Other comprehensive (loss) income on available-for-sale debt securities (64,459) (11,487) 7,861 Benefit plans: Amortization of actuarial loss (2) 198 301 218 Actuarial gain (loss) 172 1,808 (1,616) Net change in benefit plan liabilities 370 2,109 (1,398) Net change in derivatives (728) (322) 315 Other comprehensive(loss) income before taxes (64,817) (9,700) 6,778 Income (benefit) tax (13,995) (2,037) 1,424 Other comprehensive (loss) income $ (50,822) $ (7,663) $ 5,354 (1) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in gains on sale of investment securities on the consolidated statements of income and comprehensive income. (2) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in the computation of net periodic pension expense. Refer to Note 17 included in these consolidated financial statements.

Summary of significant accoun_4

Summary of significant accounting policies - Nature of operations and Basis of presentation (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) Office $ / shares	Dec. 31, 2021 $ / shares	Dec. 31, 2020 $ / shares
Summary of significant accounting policies
Number of full-service community banking offices \| Office	28
Reclassification of prior period items amounts effect on net income \| $	$ 0
Dividends declared \| $ / shares	$ 1.58	$ 1.50	$ 1.44

Summary of significant accoun_5

Summary of significant accounting policies - Loans, net (Details)	12 Months Ended
	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable
Debt service coverage ratio	1.2
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable
Maximum loan to value percentage	80%
Residential Mortgage \| Maximum
Accounts, Notes, Loans and Financing Receivable
Maximum amortization period	30 years

Summary of significant accoun_6

Summary of significant accounting policies - Nonperforming assets and Allowance for loan losses (Details)	12 Months Ended
	Dec. 31, 2022
Summary of significant accounting policies
Non performing loans past due period for Non-accrual status	90 days
Minimum contractual terms of a loan	6 months
Maximum days of consumer loans past due	120 days

Summary of significant accoun_7

Summary of significant accounting policies - Premises and equipment, net (Details)	12 Months Ended
	Dec. 31, 2022
Minimum \| Premises and leasehold improvements
Premises and equipment, net
Property, plant and equipment, estimated useful life	7 years
Minimum \| Furniture, fixtures and equipment
Premises and equipment, net
Property, plant and equipment, estimated useful life	3 years
Maximum \| Premises and leasehold improvements
Premises and equipment, net
Property, plant and equipment, estimated useful life	40 years
Maximum \| Furniture, fixtures and equipment
Premises and equipment, net
Property, plant and equipment, estimated useful life	10 years

Summary of significant accoun_8

Summary of significant accounting policies - Goodwill and other intangible assets, net, Advertising (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill
Impairment losses on intangible assets	$ 0	$ 0	$ 0
Maximum
Goodwill
Finite useful life of intangible assets	10 years

Summary of significant accoun_9

Summary of significant accounting policies - Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of significant accounting policies
Income tax benefit recognition threshold	50%
Unrecognized tax benefit or accrued interest and penalties	$ 0	$ 0	$ 0

Summary of significant accou_10

Summary of significant accounting policies - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Basic earnings per share
Net income, Basic	$ 38,090	$ 43,519	$ 29,354
Average common shares outstanding - Basic	7,168,092	7,196,160	7,304,956
Earnings per share - Basic	$ 5.31	$ 6.05	$ 4.02
Diluted earnings per share
Net income, Diluted	$ 38,090	$ 43,519	$ 29,354
Average common shares outstanding - Diluted	7,211,643	7,235,303	7,337,843
Earnings per share - Diluted	$ 5.28	$ 6.02	$ 4

Summary of significant accou_11

Summary of significant accounting policies - Recent accounting standards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loans and leases
Total loans and leases allowance	$ 27,472	$ 28,383	$ 27,344	$ 22,677
Impact to retained earnings	230,515	203,750
Commercial
Loans and leases
Total loans and leases allowance	5,612	8,453	8,734	6,888
Commercial real estate
Loans and leases
Total loans and leases allowance	17,915	15,928	14,559	11,496
Residential real estate
Loans and leases
Total loans and leases allowance	3,072	3,209	3,129	3,226
Consumer
Loans and leases
Total loans and leases allowance	873	$ 793	$ 922	$ 1,067
Accounting Standards Update 2016-13 \| Minimum
Error Corrections and Prior Period Adjustments Restatement
Decrease in management estimates	(2,500)
Loans and leases
Impact to retained earnings	2,100
Accounting Standards Update 2016-13 \| Maximum
Error Corrections and Prior Period Adjustments Restatement
Decrease in management estimates	(3,000)
Loans and leases
Impact to retained earnings	$ 2,500

Cash and due from banks (Detail

Cash and due from banks (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Cash and due from banks
Required reserve balances	$ 37.9	$ 279.9

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment Securities
Available-for-sale, Amortized Cost	$ 543,953	$ 519,112
Available-for-sale, Gross Unrealized Gains	93	5,294
Available-for-sale, Gross Unrealized Losses	66,343	7,085
Available-for-sale, Fair Value	477,703	517,321
Held-to-maturity, Amortized Cost	91,179	71,213
Held-to-maturity, Gross Unrealized Gains	1	129
Held-to-maturity, Gross Unrealized Losses	14,617	896
Held-to-maturity, Fair value	76,563	70,446
U.S. Treasury securities
Investment Securities
Available-for-sale, Amortized Cost	199,937	193,849
Available-for-sale, Gross Unrealized Gains		107
Available-for-sale, Gross Unrealized Losses	19,640	2,382
Available-for-sale, Fair Value	180,297	191,574
U.S. Government-sponsored enterprises state and municipals
Investment Securities
Available-for-sale, Amortized Cost	16,955	33,435
Available-for-sale, Gross Unrealized Gains		343
Available-for-sale, Gross Unrealized Losses	585
Available-for-sale, Fair Value	16,370	33,778
State and municipals, Taxable
Investment Securities
Available-for-sale, Amortized Cost	68,946	69,066
Available-for-sale, Gross Unrealized Gains		994
Available-for-sale, Gross Unrealized Losses	13,588	1,082
Available-for-sale, Fair Value	55,358	68,978
State and municipals, Tax-exempt
Investment Securities
Available-for-sale, Amortized Cost	99,774	96,412
Available-for-sale, Gross Unrealized Gains	93	2,452
Available-for-sale, Gross Unrealized Losses	11,460	614
Available-for-sale, Fair Value	88,407	98,250
Tax-exempt state and municipals
Investment Securities
Held-to-maturity, Amortized Cost	11,237	11,476
Held-to-maturity, Gross Unrealized Gains	1	126
Held-to-maturity, Gross Unrealized Losses	841	56
Held-to-maturity, Fair value	10,397	11,546
Residential mortgage-backed securities, U.S. government agencies
Investment Securities
Available-for-sale, Amortized Cost	982	1,790
Available-for-sale, Gross Unrealized Gains		53
Available-for-sale, Gross Unrealized Losses	40
Available-for-sale, Fair Value	942	1,843
Held-to-maturity, Amortized Cost	17,304	18,802
Held-to-maturity, Gross Unrealized Losses	3,016	392
Held-to-maturity, Fair value	14,288	18,410
Residential mortgage-backed securities, U.S. government-sponsored enterprises
Investment Securities
Available-for-sale, Amortized Cost	141,231	109,018
Available-for-sale, Gross Unrealized Gains		939
Available-for-sale, Gross Unrealized Losses	20,112	2,925
Available-for-sale, Fair Value	121,119	107,032
Held-to-maturity, Amortized Cost	62,638	40,935
Held-to-maturity, Gross Unrealized Gains		3
Held-to-maturity, Gross Unrealized Losses	10,760	448
Held-to-maturity, Fair value	51,878	40,490
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Investment Securities
Available-for-sale, Amortized Cost	12,128	12,542
Available-for-sale, Gross Unrealized Gains		406
Available-for-sale, Gross Unrealized Losses	544
Available-for-sale, Fair Value	11,584	12,948
Corporate debt securities
Investment Securities
Available-for-sale, Amortized Cost	4,000	3,000
Available-for-sale, Gross Unrealized Losses	374
Available-for-sale, Fair Value	$ 3,626	2,918
Held-to-maturity, Gross Unrealized Losses		$ 82

Investment securities - Equity

Investment securities - Equity Securities Portfolio (Details) $ in Thousands	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($)
Investment Securities
Number of equity securities portfolio consisting of stock of other financial institutions \| security	1
Equity investments carried at fair value	$ 110	$ 140
Fair value of equity portfolio in excess of cost basis	44
Equity Securities
Investment Securities
Equity investments carried at fair value	$ 100	$ 100

Investment securities - Unreali

Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investment securities
Net (loss) gain recognized during the period on equity securities	$ (31)	$ 2	$ (6)
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date	$ (31)	$ 2

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment securities
Within one year	$ 15,601
After one but within five years	168,324
After five but within ten years	72,917
After ten years	84,933
Available for sale securities	341,775
Mortgage-backed and other amortizing securities	135,928
Total	$ 477,703	$ 517,321

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After five but within ten years, Held to maturity	$ 8,884
Amortized Cost, After ten years, Held to maturity	2,353
Amortized Cost, Held to maturity	11,237
Amortized Cost, Mortgage-backed securities, Held to maturity	79,942
Held-to-maturity, Amortized Cost	91,179	$ 71,213
Fair Value of Held-to-maturity Securities
Fair Value, After five but within ten years, Held to maturity	8,227
Fair Value, After ten years, Held to maturity	2,170
Fair Value, Held to maturity	10,397
Fair Value, Mortgage-backed securities, Held to maturity	66,166
Held to maturity, Fair Value	$ 76,563	$ 70,446

Investment securities - Pledged

Investment securities - Pledged Securities (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
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	$ 168	$ 203.6
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer	10%	10%

Investment securities - Fair Va

Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	98	150
Less Than 12 Months, Fair Value	$ 159,303	$ 344,216
Less Than 12 Months, Unrealized Losses	$ 9,341	$ 5,354
12 Months or Greater, Number of Securities in a Loss Position \| security	204	18
12 Months or Greater, Fair Value	$ 385,821	$ 67,073
12 Months or Greater, Unrealized Losses	$ 71,619	$ 2,627
Total, Number of Securities in a Loss Position \| security	302	168
Total, Fair Value	$ 545,124	$ 411,289
Total, Unrealized Losses	$ 80,960	$ 7,981
U.S. Treasury securities
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	5	42
Less Than 12 Months, Fair Value	$ 23,700	$ 179,974
Less Than 12 Months, Unrealized Losses	$ 1,887	$ 2,382
12 Months or Greater, Number of Securities in a Loss Position \| security	40
12 Months or Greater, Fair Value	$ 156,597
12 Months or Greater, Unrealized Losses	$ 17,753
Total, Number of Securities in a Loss Position \| security	45	42
Total, Fair Value	$ 180,297	$ 179,974
Total, Unrealized Losses	$ 19,640	$ 2,382
U.S. Government-sponsored enterprises state and municipals
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	4
Less Than 12 Months, Fair Value	$ 14,104
Less Than 12 Months, Unrealized Losses	$ 197
12 Months or Greater, Number of Securities in a Loss Position \| security	1
12 Months or Greater, Fair Value	$ 2,266
12 Months or Greater, Unrealized Losses	$ 388
Total, Number of Securities in a Loss Position \| security	5
Total, Fair Value	$ 16,370
Total, Unrealized Losses	$ 585
State and Municipals, Taxable
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	21	27
Less Than 12 Months, Fair Value	$ 19,919	$ 26,827
Less Than 12 Months, Unrealized Losses	$ 2,908	$ 718
12 Months or Greater, Number of Securities in a Loss Position \| security	45	8
12 Months or Greater, Fair Value	$ 34,464	$ 8,008
12 Months or Greater, Unrealized Losses	$ 10,680	$ 364
Total, Number of Securities in a Loss Position \| security	66	35
Total, Fair Value	$ 54,383	$ 34,835
Total, Unrealized Losses	$ 13,588	$ 1,082
State and Municipals, Tax-exempt
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	39	61
Less Than 12 Months, Fair Value	$ 30,973	$ 38,693
Less Than 12 Months, Unrealized Losses	$ 1,690	$ 357
12 Months or Greater, Number of Securities in a Loss Position \| security	84	2
12 Months or Greater, Fair Value	$ 59,664	$ 10,319
12 Months or Greater, Unrealized Losses	$ 10,611	$ 313
Total, Number of Securities in a Loss Position \| security	123	63
Total, Fair Value	$ 90,637	$ 49,012
Total, Unrealized Losses	$ 12,301	$ 670
Residential mortgage-backed securities, U.S. government agencies
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	5	3
Less Than 12 Months, Fair Value	$ 904	$ 18,398
Less Than 12 Months, Unrealized Losses	$ 39	$ 392
12 Months or Greater, Number of Securities in a Loss Position \| security	4
12 Months or Greater, Fair Value	$ 14,326
12 Months or Greater, Unrealized Losses	$ 3,017
Total, Number of Securities in a Loss Position \| security	9	3
Total, Fair Value	$ 15,230	$ 18,398
Total, Unrealized Losses	$ 3,056	$ 392
Residential mortgage-backed securities, U.S. government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	19	13
Less Than 12 Months, Fair Value	$ 57,166	$ 77,875
Less Than 12 Months, Unrealized Losses	$ 2,029	$ 1,454
12 Months or Greater, Number of Securities in a Loss Position \| security	25	7
12 Months or Greater, Fair Value	$ 115,831	$ 48,276
12 Months or Greater, Unrealized Losses	$ 28,843	$ 1,919
Total, Number of Securities in a Loss Position \| security	44	20
Total, Fair Value	$ 172,997	$ 126,151
Total, Unrealized Losses	$ 30,872	$ 3,373
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	4
Less Than 12 Months, Fair Value	$ 11,584
Less Than 12 Months, Unrealized Losses	$ 544
12 Months or Greater, Number of Securities in a Loss Position \| security	0
12 Months or Greater, Fair Value	$ 0
12 Months or Greater, Unrealized Losses	$ 0
Total, Number of Securities in a Loss Position \| security	4
Total, Fair Value	$ 11,584
Total, Unrealized Losses	$ 544
Corporate debt securities
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position \| security	1	4
Less Than 12 Months, Fair Value	$ 953	$ 2,449
Less Than 12 Months, Unrealized Losses	$ 47	$ 51
12 Months or Greater, Number of Securities in a Loss Position \| security	5	1
12 Months or Greater, Fair Value	$ 2,673	$ 470
12 Months or Greater, Unrealized Losses	$ 327	$ 31
Total, Number of Securities in a Loss Position \| security	6	5
Total, Fair Value	$ 3,626	$ 2,919
Total, Unrealized Losses	$ 374	$ 82

Investment securities (Details)

Investment securities (Details) - USD ($) $ in Millions	12 Months Ended
Investment securities (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of significant accounting policies
Other-than-temporary impairments recognized	$ 0	$ 0	$ 0

Loans, net and allowance for _3

Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net deferred loan costs	$ 300	$ 1,600
Loans	2,730,116	2,329,173	$ 2,177,982
Loans outstanding to directors, executive officers, principal stockholders or to their affiliates	3,200	3,200
Advances of loans receivable	1,100	4,800
Repayments of loans receivable		6,600
Number of related party loans classified as nonaccrual, past due, or restructured	0	0
Deposits from related parties	6,800	$ 10,900
PPP
Net deferred loan costs	200
Loans	22,300
PPP Two
Loans	10,900
PPP One
Loans	$ 11,400

Loans, net and allowance for _4

Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable
Loans	$ 2,730,116	$ 2,329,173	$ 2,177,982
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	599,258	613,127	679,286
Taxable
Accounts, Notes, Loans and Financing Receivable
Loans	377,215	424,455
Non-taxable
Accounts, Notes, Loans and Financing Receivable
Loans	222,043	188,672
Real estate
Accounts, Notes, Loans and Financing Receivable
Loans	2,040,555	1,641,163
Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans	1,709,827	1,343,539	1,137,990
Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans	330,728	297,624	277,414
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	90,303	74,883	$ 83,292
Indirect Auto
Accounts, Notes, Loans and Financing Receivable
Loans	76,461	65,791
Consumer Other
Accounts, Notes, Loans and Financing Receivable
Loans	$ 13,842	$ 9,092

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	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allowance for loan losses:
Beginning Balance	$ 28,383	$ 27,344	$ 22,677
Charge-offs	(787)	(956)	(3,479)
Recoveries	325	245	746
Provisions (credits)	(449)	1,750	7,400
Ending balance	27,472	28,383	27,344
Commercial
Allowance for loan losses:
Beginning Balance	8,453	8,734	6,888
Charge-offs	(161)	(492)	(2,771)
Recoveries	40	89	525
Provisions (credits)	(2,720)	122	4,092
Ending balance	5,612	8,453	8,734
Commercial real estate
Allowance for loan losses:
Beginning Balance	15,928	14,559	11,496
Charge-offs	(284)	(252)	(144)
Recoveries	110	68	16
Provisions (credits)	2,161	1,553	3,191
Ending balance	17,915	15,928	14,559
Residential real estate
Allowance for loan losses:
Beginning Balance	3,209	3,129	3,226
Charge-offs	(31)	(24)	(247)
Recoveries	4	7	57
Provisions (credits)	(110)	97	93
Ending balance	3,072	3,209	3,129
Consumer
Allowance for loan losses:
Beginning Balance	793	922	1,067
Charge-offs	(311)	(188)	(317)
Recoveries	171	81	148
Provisions (credits)	220	(22)	24
Ending balance	$ 873	$ 793	$ 922

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	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allowance for loan losses:
Ending balance	$ 27,472	$ 28,383	$ 27,344	$ 22,677
Ending balance: individually evaluated for impairment	40	175	1,202
Ending balance: collectively evaluated for impairment	27,432	28,208	26,142
Loans receivable:
Ending balance	2,730,116	2,329,173	2,177,982
Ending balance: individually evaluated for impairment	3,921	4,362	9,795
Ending balance: collectively evaluated for impairment	2,726,195	2,324,811	2,168,187
Commercial
Allowance for loan losses:
Ending balance	5,612	8,453	8,734	6,888
Ending balance: individually evaluated for impairment	19	40	947
Ending balance: collectively evaluated for impairment	5,593	8,413	7,787
Loans receivable:
Ending balance	599,258	613,127	679,286
Ending balance: individually evaluated for impairment	98	199	4,297
Ending balance: collectively evaluated for impairment	599,160	612,928	674,989
Commercial real estate
Allowance for loan losses:
Ending balance	17,915	15,928	14,559	11,496
Ending balance: individually evaluated for impairment		109	180
Ending balance: collectively evaluated for impairment	17,915	15,819	14,379
Loans receivable:
Ending balance	1,709,827	1,343,539	1,137,990
Ending balance: individually evaluated for impairment	2,063	2,890	3,952
Ending balance: collectively evaluated for impairment	1,707,764	1,340,649	1,134,038
Residential real estate
Allowance for loan losses:
Ending balance	3,072	3,209	3,129	3,226
Ending balance: individually evaluated for impairment	21	26	75
Ending balance: collectively evaluated for impairment	3,051	3,183	3,054
Loans receivable:
Ending balance	330,728	297,624	277,414
Ending balance: individually evaluated for impairment	1,760	1,273	1,546
Ending balance: collectively evaluated for impairment	328,968	296,351	275,868
Consumer
Allowance for loan losses:
Ending balance	873	793	922	$ 1,067
Ending balance: collectively evaluated for impairment	873	793	922
Loans receivable:
Ending balance	90,303	74,883	83,292
Ending balance: collectively evaluated for impairment	$ 90,303	$ 74,883	$ 83,292

Loans, net and allowance for _7

Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Accounts, Notes, Loans and Financing Receivable
Loans	$ 2,730,116	$ 2,329,173	$ 2,177,982
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	599,258	613,127	679,286
Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans	1,709,827	1,343,539	1,137,990
Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans	330,728	297,624	277,414
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	90,303	74,883	$ 83,292
Pass
Accounts, Notes, Loans and Financing Receivable
Loans	2,708,780	2,305,433
Pass \| Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	590,621	611,151
Pass \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans	1,699,041	1,324,646
Pass \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans	329,098	294,892
Pass \| Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	90,020	74,744
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans	15,331	15,168
Special Mention \| Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	$ 7,822	896
Number of loans degraded \| loan	1
Increase in loans receivables due to insufficient cash flow	$ 7,800
Decrease in loan due to upgrading credit line	3,500
Decrease in loan due to downgrading credit line	2,400
Special Mention \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans	7,509	13,939
Special Mention \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans		333
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans	6,005	8,572
Substandard \| Commercial
Accounts, Notes, Loans and Financing Receivable
Loans	815	1,080
Substandard \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans	3,277	4,954
Substandard \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans	1,630	2,399
Decrease in loan due to downgrading credit line	700
Decrease in loan due to payoff of credit	500
Substandard \| Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	$ 283	$ 139

Loans, net and allowance for _8

Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	$ 2,035	$ 2,811
Financing Receivable	(800)
Charge-offs	(787)	(956)	$ (3,479)
Commercial
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	86	185
Charge-offs	(161)	(492)	(2,771)
Commercial and Residential Portfolio Segment
Financing Receivable, Recorded Investment, Past Due.
Financing Receivable, Sale	900
Charge-offs	(100)
Commercial real estate
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	1,155	1,793
Charge-offs	(284)	(252)	(144)
Residential real estate
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	562	694
Charge-offs	(31)	(24)	(247)
Consumer
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	232	139
Charge-offs	$ (311)	$ (188)	$ (317)

Loans, net and allowance for _9

Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2020
Financing Receivable, Recorded Investment, Past Due.
Total Due	$ 5,154	$ 3,986
Loans	2,329,173	2,730,116	$ 2,177,982
Loans > 90 Days and Accruing	13	748
Current
Financing Receivable, Recorded Investment, Past Due.
Total Due	2,324,019	2,726,130
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	2,898	2,091
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	948	367
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,308	1,528
Commercial
Financing Receivable, Recorded Investment, Past Due.
Total Due	414	261
Loans	613,127	599,258	679,286
Commercial \| Current
Financing Receivable, Recorded Investment, Past Due.
Total Due	612,713	598,997
Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	101	137
Commercial \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	155	38
Commercial \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	158	86
Commercial real estate
Financing Receivable, Recorded Investment, Past Due.
Total Due	2,025	438
Loans	1,343,539	1,709,827	1,137,990
Increase (Decrease) in Notes Receivable	(1,200)
Commercial real estate \| Current
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,341,514	1,709,389
Commercial real estate \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	768	102
Commercial real estate \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	423	2
Commercial real estate \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	834	334
Residential real estate
Financing Receivable, Recorded Investment, Past Due.
Total Due	2,024	2,278
Loans	297,624	330,728	277,414
Loans > 90 Days and Accruing	13	748
Residential real estate \| Current
Financing Receivable, Recorded Investment, Past Due.
Total Due	295,600	328,450
Residential real estate \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,552	1,162
Residential real estate \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	207	128
Residential real estate \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	265	988
Consumer
Financing Receivable, Recorded Investment, Past Due.
Total Due	691	1,009
Loans	74,883	90,303	$ 83,292
Consumer \| Current
Financing Receivable, Recorded Investment, Past Due.
Total Due	74,192	89,294
Consumer \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	477	690
Consumer \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	163	199
Consumer \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	$ 51	$ 120

Loans, net and allowance for_10

Loans, net and allowance for loan losses - Summarized Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 3,893	$ 3,546	$ 5,820
Unpaid Principal Balance, With no related allowance, Total	5,052	4,822	7,769
Average Recorded Investment, With no related allowance, Total	4,126	4,799	6,453
Interest Income Recognized, With no related allowance, Total	94	54	79
Recorded Investment, With an allowance recorded, Total	260	955	4,086
Unpaid Principal Balance, With an allowance recorded, Total	264	985	4,286
Related Allowance, With an allowance recorded, Total	40	175	1,202
Average Recorded Investment, With an allowance recorded, Total	313	2,329	4,349
Interest Income Recognized, With an allowance recorded, Total	14	50	66
Recorded Investment, Total	4,153	4,501	9,906
Unpaid Principal Balance, Total	5,316	5,807	12,055
Average Recorded Investment, Total	4,439	7,128	10,802
Interest Income Recognized, Total	108	104	145
Proceeds from Collection of Restructured Financing Receivable	200
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	78	158	2,251
Unpaid Principal Balance, With no related allowance, Total	421	481	3,421
Average Recorded Investment, With no related allowance, Total	119	964	2,915
Interest Income Recognized, With no related allowance, Total	7	13	30
Recorded Investment, With an allowance recorded, Total	20	41	2,046
Unpaid Principal Balance, With an allowance recorded, Total	20	41	2,094
Related Allowance, With an allowance recorded, Total	19	40	947
Average Recorded Investment, With an allowance recorded, Total	27	1,091	2,038
Interest Income Recognized, With an allowance recorded, Total	2	15	17
Recorded Investment, Total	98	199	4,297
Unpaid Principal Balance, Total	441	522	5,515
Average Recorded Investment, Total	146	2,055	4,953
Interest Income Recognized, Total	9	28	47
Commercial real estate
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,063	2,376	2,372
Unpaid Principal Balance, With no related allowance, Total	2,654	3,120	2,964
Average Recorded Investment, With no related allowance, Total	2,753	2,719	2,148
Interest Income Recognized, With no related allowance, Total	59	22	28
Recorded Investment, With an allowance recorded, Total		513	1,580
Unpaid Principal Balance, With an allowance recorded, Total		543	1,710
Related Allowance, With an allowance recorded, Total		109	180
Average Recorded Investment, With an allowance recorded, Total		802	1,687
Interest Income Recognized, With an allowance recorded, Total		22	36
Recorded Investment, Total	2,063	2,889	3,952
Unpaid Principal Balance, Total	2,654	3,663	4,674
Average Recorded Investment, Total	2,753	3,521	3,835
Interest Income Recognized, Total	59	44	64
Residential real estate
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	1,520	873	1,086
Unpaid Principal Balance, With no related allowance, Total	1,733	1,073	1,263
Average Recorded Investment, With no related allowance, Total	1,036	1,016	1,223
Interest Income Recognized, With no related allowance, Total	28	19	21
Recorded Investment, With an allowance recorded, Total	240	401	460
Unpaid Principal Balance, With an allowance recorded, Total	244	401	482
Related Allowance, With an allowance recorded, Total	21	26	75
Average Recorded Investment, With an allowance recorded, Total	286	436	624
Interest Income Recognized, With an allowance recorded, Total	12	13	13
Recorded Investment, Total	1,760	1,274	1,546
Unpaid Principal Balance, Total	1,977	1,474	1,745
Average Recorded Investment, Total	1,322	1,452	1,847
Interest Income Recognized, Total	40	32	34
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	232	139	111
Unpaid Principal Balance, With no related allowance, Total	244	148	121
Average Recorded Investment, With no related allowance, Total	218	100	167
Recorded Investment, Total	232	139	111
Unpaid Principal Balance, Total	244	148	121
Average Recorded Investment, Total	$ 218	$ 100	$ 167

Loans, net and allowance for_11

Loans, net and allowance for loan losses - Loan Modifications and Troubled Debt Restructurings (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) loan	Dec. 31, 2020 USD ($) contract
Loans in the formal process of foreclosure	$ 600,000	$ 300,000
Number of loans	0	0		4	4
Pre-Modification Recorded Investment			$ 1,085,000
Post-Modification Recorded Investment			1,085,000
Recorded Investment			1,051,000	$ 1,051,000	$ 1,051,000
Number of defaults on loans restructured	$ 0	$ 0	0
Interest income recognized using cash-basis method on impaired loan	100,000	100,000	100,000
Loans receivable, related parties, considered as nonaccrual, past due or restructured or potential credit risk	$ 1,400,000	$ 1,600,000
COVID 19
Number of loans \| loan				4
COVID 19 \| Restaurant
Number of loans \| loan				2
COVID 19 \| Retail, Small Business
Number of loans \| loan				2
Commercial \| Commercial loans
Number of loans \| contract					1
Pre-Modification Recorded Investment			12,000
Post-Modification Recorded Investment			12,000
Recorded Investment			5,000	$ 5,000	$ 5,000
Commercial real estate
Number of loans \| contract					3
Pre-Modification Recorded Investment			1,073,000
Post-Modification Recorded Investment			1,073,000
Recorded Investment			$ 1,046,000	$ 1,046,000	$ 1,046,000

Off-balance sheet financial i_3

Off-balance sheet financial instruments - Summary of Contractual Amounts of Off-balance Sheet Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Off-balance sheet financial instruments.
Commitments to extend credit	$ 553,337	$ 431,011
Unused portions of lines of credit	78,406	64,108
Standby letters of credit	57,626	58,254
Total contractual amounts of off-balance sheet commitments	$ 689,369	$ 553,373

Off-balance sheet financial i_4

Off-balance sheet financial instruments - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Off-balance sheet financial instruments.
Expiration period of standby letters	12 months
Amount of standby letters of credit	$ 53.7	$ 55.2

Premises and equipment, net - S

Premises and equipment, net - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Premises and equipment, net
Gross premises and equipment	$ 91,773	$ 85,340
Less: accumulated depreciation	36,106	33,838
Net premises and equipment	55,667	51,502
Land
Premises and equipment, net
Gross premises and equipment	7,302	7,255
Premises and leasehold improvements
Premises and equipment, net
Gross premises and equipment	55,865	50,426
Right-of-use assets
Premises and equipment, net
Gross premises and equipment	7,980	8,563
Furniture, fixtures and equipment
Premises and equipment, net
Gross premises and equipment	$ 20,626	$ 19,096

Operating lease commitments a_3

Operating lease commitments and contingencies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($) item	Dec. 31, 2020 USD ($)
Operating leases
Options to renew	true
Renewal term	5 years
Weighted average remaining lease term	17 years 1 month 6 days	16 years
Right-of-use assets	$ 8,000	$ 8,600
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Lease liabilities for operating leases	$ 8,300	$ 8,800
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities	Other Liabilities
Number of operating lease added \| item	0	2
Rent expense	$ 1,000	$ 760
Rent expense			$ 727
Minimum
Operating leases
Remaining renewal terms	7 years
Discount rate	1.60%
Weighted-average discount rate		3%
Maximum
Operating leases
Remaining renewal terms	31 years
Discount rate	3.85%
Weighted-average discount rate		2.99%

Operating lease commitments a_4

Operating lease commitments and contingencies - Summary of Future Minimum Rental Commitments Under Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating lease commitments and contingencies
2023	$ 736
2024	669
2024	688
2026	691
2027	617
Thereafter	7,297
Total future minimum lease payments	10,698
Less amount representing interest	(2,398)
Present value of future minimum lease payments	$ 8,300	$ 8,800

Other assets - Components of Ot

Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Other real estate owned	$ 121	$ 609
Investment in low income housing partnership	5,446	5,900
Mortgage servicing rights	914	882
Restricted equity securities (FHLB and other)	9,630	4,045
Interest rate floor and swaps	22,196	9,870
Other assets	8,165	6,395
Total	46,071	27,701
Interest Rate Floor
Interest rate floor and swaps	1	844
Interest Rate Swaps
Interest rate floor and swaps	$ 21,794	$ 9,026

Other assets - Unpaid Principal

Other assets - Unpaid Principal Balances (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Other assets
Unpaid principal balances of mortgage loans serviced for others	$ 144.7	$ 151.6

Deposits - Components of Intere

Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deposits.
Money market accounts	$ 685,323	$ 588,245
Now accounts	772,712	851,086
Savings accounts	523,931	491,796
Time deposits less than $250	199,136	203,719
Time deposits $250 or more	92,731	90,795
Total interest-bearing deposits	2,273,833	2,225,641
Noninterest-bearing deposits	772,765	737,756
Total deposits	$ 3,046,598	$ 2,963,397

Deposits - Schedule of Maturiti

Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Deposits.
2023	$ 197,015
2024	50,037
2025	8,502
2026	8,962
2027	19,980
Thereafter	7,371
Total	$ 291,867

Deposits (Details)

Deposits (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Deposits.
Aggregate amount of deposits reclassified as loans	$ 0.6	$ 0.2

Short-term borrowings (Details)

Short-term borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
Short-term borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Short-term borrowings
Ending Balance	$ 114,930
Average Balance	42,680
Maximum Month-End Balance	$ 142,075
Weighted Average Rate for the Year	2.58%
Weighted Average Rate at End of Year	4.43%
Other borrowings
Short-term borrowings
Ending Balance	$ 14,530
Average Balance	10,033
Maximum Month-End Balance	$ 16,100
Weighted Average Rate for the Year	2.10%
Weighted Average Rate at End of Year	4.33%
FHLB Advances
Short-term borrowings
Ending Balance	$ 100,400		$ 50,000
Average Balance	32,647	$ 13,973	83,716
Maximum Month-End Balance	$ 125,975	$ 50,000	$ 179,199
Weighted Average Rate for the Year	2.73%	0.56%	1.01%
Weighted Average Rate at End of Year	4.45%		0.40%

Short-term borrowings - Additio

Short-term borrowings - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Short-term borrowings
Maximum borrowing capacity	$ 18	$ 18
Outstanding amount in borrowings	0	$ 0
Peoples Bank
Short-term borrowings
Maximum borrowing capacity	1,200
Outstanding amount in borrowings	101
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	$ 388.8

Long-term debt - Long-term debt

Long-term debt - Long-term debt advances (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument
Long-term debt	$ 555	$ 2,711
Long-term 4.69% fixed rate debt due March 2023
Debt Instrument
Long-term debt	$ 555	$ 2,711
Fixed interest rate (as a percent)	4.69%

Long-term debt - Maturities of

Long-term debt - Maturities of long-term debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Short-term borrowings
2023	$ 555
Total long-term debt	$ 555	$ 2,711

Long-term debt - Fixed and adju

Long-term debt - Fixed and adjustable rate information (Details) - item	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Short-term borrowings
Number of FHLB advances entered	0	0

Subordinated debt (Details)

Subordinated debt (Details) - 2020 Notes $ in Millions	Jun. 01, 2020 USD ($)
Debt Instrument
Aggregate principal amount	$ 33
Rate of interest for first five years	5.375%
Duration interest rate in effect	5 years
Percentage of debt redeemed	100%
Minimum
Debt Instrument
Floated interest rate	4.75%
Number of days notice to redeem debt	10 days

Fair value of financial instr_3

Fair value of financial instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	$ 477,813	$ 517,461
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	180,297	191,574
U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	16,370	33,778
State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	55,358	68,978
State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	88,407	98,250
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	3,626	2,918
Residential mortgage-backed securities, U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	942	1,843
Residential mortgage-backed securities, U.S. government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	132,703	119,980
Common equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	110	140
Loan held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value		408
Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	1	844
Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	21,794	8,767
Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(21,466)	(8,811)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	180,407	191,714
Level 1 \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	180,297	191,574
Level 1 \| Common equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	110	140
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	297,406	325,747
Level 2 \| U.S. Government-sponsored enterprises state and municipals
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	16,370	33,778
Level 2 \| State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	55,358	68,978
Level 2 \| State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	88,407	98,250
Level 2 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	3,626	2,918
Level 2 \| Residential mortgage-backed securities, U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	942	1,843
Level 2 \| Residential mortgage-backed securities, U.S. government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	132,703	119,980
Level 2 \| Loan held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value		408
Level 2 \| Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	1	844
Level 2 \| Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	21,794	8,767
Level 2 \| Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	$ (21,466)	(8,811)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Common equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Loan held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value

Fair value of financial instr_4

Fair value of financial instruments - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 220	$ 780
Other real estate owned		487
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 220	780
Other real estate owned		$ 487

Fair value of financial instr_5

Fair value of financial instruments - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - Level 3 - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Impaired Loans
Fair Value Inputs, Assets, Quantitative Information
Assets measured at fair value	$ 220	$ 780
Impaired Loans \| Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	21.60%	6.40%
Range and weighted average of liquidation expenses	3%	3%
Impaired Loans \| Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	97%	97%
Range and weighted average of liquidation expenses	6%	6%
Impaired Loans \| Weighted Average
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	77.70%	65.20%
Range and weighted average of liquidation expenses	4.90%	5.10%
Other Real Estate Owned
Fair Value Inputs, Assets, Quantitative Information
Assets measured at fair value		$ 487
Other Real Estate Owned \| Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments		35.90%
Range and weighted average of liquidation expenses		3%
Other Real Estate Owned \| Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments		35.90%
Range and weighted average of liquidation expenses		6%
Other Real Estate Owned \| Weighted Average
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments		35.90%
Range and weighted average of liquidation expenses		5%

Fair value of financial instr_6

Fair value of financial instruments - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Investment securities:
Available-for-sale	$ 477,703	$ 517,321
Common equity securities	110	140
Held-to-maturity	76,563	70,446
Loans held for sale		408
Mortgage servicing rights	914	882
Financial liabilities:
Subordinated debentures	33,000	33,000
Carrying Value
Financial assets:
Cash and due from banks	37,868	279,933
Investment securities:
Available-for-sale	477,703	517,321
Common equity securities	110	140
Held-to-maturity	91,179	71,213
Loans held for sale		408
Net loans	2,702,644	2,300,790
Accrued interest receivable	11,715	8,528
Mortgage servicing rights	914	882
Restricted equity securities (FHLB and other)	9,630	4,045
Interest rate floor	1	844
Interest rate swaps	21,794	8,767
Total assets	3,353,558	3,192,871
Financial liabilities:
Deposits	3,046,598	2,963,397
Short-term borrowings	114,930
Long-term debt	555	2,711
Subordinated debentures	33,000	33,000
Accrued interest payable	903	408
Interest rate swap	21,466	8,811
Total liabilities	3,217,452	3,008,327
Fair Value
Financial assets:
Cash and due from banks	37,868	279,933
Investment securities:
Available-for-sale	477,703	517,321
Common equity securities	110	140
Held-to-maturity	76,563	70,446
Loans held for sale		408
Net loans	2,562,780	2,261,586
Accrued interest receivable	11,715	8,528
Mortgage servicing rights	1,762	1,357
Restricted equity securities (FHLB and other)	9,630	4,045
Interest rate floor	1	844
Interest rate swaps	21,794	8,767
Total assets	3,199,926	3,153,375
Financial liabilities:
Deposits	3,035,615	2,963,547
Short-term borrowings	114,743
Long-term debt	555	2,778
Subordinated debentures	53,998	32,337
Accrued interest payable	903	408
Interest rate swap	21,466	8,811
Total liabilities	3,227,280	3,007,881
Level 1
Financial assets:
Cash and due from banks	37,868	279,933
Investment securities:
Available-for-sale	180,297	191,574
Common equity securities	110	140
Level 2
Investment securities:
Available-for-sale	297,406	325,747
Held-to-maturity	76,563	70,446
Loans held for sale		408
Accrued interest receivable	11,715	8,528
Mortgage servicing rights	1,762	1,357
Restricted equity securities (FHLB and other)	9,630	4,045
Interest rate floor	1	844
Interest rate swaps	21,794	8,767
Financial liabilities:
Deposits	3,035,615	2,963,547
Short-term borrowings	114,743
Long-term debt	555	2,778
Subordinated debentures	53,998	32,337
Accrued interest payable	903	408
Interest rate swap	21,466	8,811
Level 3
Investment securities:
Net loans	$ 2,562,780	$ 2,261,586

Derivatives and hedging activ_3

Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($)
Derivatives, Fair Value
Interest rate floor and swaps	$ 22,196	$ 9,870
Liability Derivatives	21,466	8,818
Cash collateral	14,530
Net Amounts of Assets presented in the Balance Sheet	21,466	8,818
Interest expense
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income		(48)
Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income	276	607
Interest Rate Floor
Derivatives, Fair Value
Interest rate floor and swaps	1	844
Interest Rate Swaps
Derivatives, Fair Value
Interest rate floor and swaps	21,794	9,026
Credit-risk contract
Derivatives, Fair Value
Cash collateral	7,400	7,400
Net Amounts of Assets presented in the Balance Sheet	2,000	5,600
Derivatives designated as hedging instruments
Derivatives, Fair Value
Interest rate floor and swaps	1	844
Derivatives designated as hedging instruments \| Interest Rate Floor
Derivatives, Fair Value
Notional amount	25,000
Interest rate floor and swaps		844
Derivatives designated as hedging instruments \| Interest Rate Floor \| Other Assets.
Derivatives, Fair Value
Interest rate floor and swaps	1
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Interest rate floor and swaps	22,195	9,026
Liability Derivatives	$ 21,466	8,811
Derivatives not designated as hedging instruments \| Interest Rate Swaps
Derivatives, Fair Value
Number of instruments held \| security	86
Accrued interest	$ 400	300
Notional amount	382,476	392,700
Derivatives not designated as hedging instruments \| Interest Rate Swaps \| Other Assets.
Derivatives, Fair Value
Interest rate floor and swaps	22,195	9,026
Derivatives not designated as hedging instruments \| Interest Rate Swaps \| Other Liabilities.
Derivatives, Fair Value
Liability Derivatives	21,466	$ 8,811
Cash Flow Hedge \| Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income	$ 64

Derivatives and hedging activ_4

Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments, Gain (Loss)
Amount of Gain (Loss) Recognized in OCI Included Component	$ (47)	$ 680
Interest expense
Derivative Instruments, Gain (Loss)
Amount of Gain Reclassified from Accumulated OCI into Income		(23)
Interest income
Derivative Instruments, Gain (Loss)
Amount of Gain Reclassified from Accumulated OCI into Income	212	543
Cash Flow Hedge
Derivative Instruments, Gain (Loss)
Amount of (Loss) Recognized in OCI on Derivative	(515)	173
Amount of Gain (Loss) Recognized in OCI Included Component	(497)	156
Amount of (Loss) Recognized in OCI Excluded Component	(18)	17
Amount of Gain Reclassified from Accumulated OCI into Income	212	495
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component	276	559
Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component	(64)	(64)
Cash Flow Hedge \| Interest expense
Derivative Instruments, Gain (Loss)
Amount of (Loss) Recognized in OCI on Derivative		401
Amount of Gain (Loss) Recognized in OCI Included Component		401
Amount of Gain Reclassified from Accumulated OCI into Income		(23)
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component		(23)
Cash Flow Hedge \| Other
Derivative Instruments, Gain (Loss)
Amount of Gain Reclassified from Accumulated OCI into Income		(25)
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component		(25)
Cash Flow Hedge \| Interest Rate Floor \| Interest income
Derivative Instruments, Gain (Loss)
Amount of (Loss) Recognized in OCI on Derivative	(515)	(228)
Amount of Gain (Loss) Recognized in OCI Included Component	(497)	(245)
Amount of (Loss) Recognized in OCI Excluded Component	(18)	17
Amount of Gain Reclassified from Accumulated OCI into Income	212	543
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component	276	607
Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component	$ (64)	$ (64)

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	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
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	$ (728)	$ (322)	$ 315
The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component	$ (64)	$ (64)
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest and Dividend Income, Operating	Interest and Dividend Income, Operating
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	$ 212	$ 543
The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	212	543
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component	$ 276	607
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		(48)
The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income		(23)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring		(25)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component		$ (48)

Derivatives and hedging activ_6

Derivatives and hedging activities - Effect of Other Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ 521	$ 136
Derivatives not designated as hedging instruments \| Interest Rate Swaps \| Interest Rate Swap Revenue
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	516	136
Derivatives not designated as hedging instruments \| Other
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	5
Derivatives not designated as hedging instruments \| Fee Income
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ 106	$ 623

Derivatives and hedging activ_7

Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Offsetting of Derivative Assets
Gross Amounts of Recognized Assets	$ 22,196	$ 9,870
Net Amounts of Assets presented in the Balance Sheet	22,196	9,870
Gross Amounts Not Offset presented in the Balance Sheet - Financial Instruments		3,218
Gross Amounts Not Offset presented in the Balance Sheet - Cash Collateral Received	14,530
Net Amount	7,666	6,652
Offsetting of Derivative Liabilities
Gross Amounts of Recognized Liabilities	21,466	8,818
Net Amounts of Assets presented in the Balance Sheet	21,466	8,818
Gross Amounts Not Offset presented in the Balance Sheet - Financial Instruments	21,466	3,218
Gross Amounts Not Offset presented in the Balance Sheet - Cash Collateral Paid		$ 5,600
Cash collateral paid but not offset	$ 7,830

Derivatives and hedging activ_8

Derivatives and hedging activities - Credit-risk-related Contingent Features (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Derivatives
Derivative Liability	$ 21,466	$ 8,818
Cash collateral	14,530
Credit-risk contract
Derivatives
Derivative Liability	2,000	5,600
Cash collateral	$ 7,400	$ 7,400

Stock plans - Additional Inform

Stock plans - Additional Information (Details) - 2017 Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award
Common stock available for grant as awards	17,364
Granted shares	19,787	19,818	16,269
Vested shares	16,403	15,460	8,455
Number of nonvested restricted stock awards	39,470	36,281	31,923	25,984
Forfeited shares	195	0	1,875
Salaries and employee benefits expense	$ 0.5	$ 0.5	$ 0.6
Non-Performance-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares		4,403
Shares or units awarded	4,396
Number of nonvested restricted stock awards	3,846	3,128
Shares or units vesting period	3 years	3 years	3 years
Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares	15,390	15,415
Number of nonvested restricted stock awards	12,557	12,332
Shares or units vesting period	3 years	3 years	3 years
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units	3 years	3 years	3 years
Average return on equity period used for conditions for vesting of performance-based restricted stock units	3 years	3 years	3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation expense	$ 1
Weighted average vesting period	1 year 8 months 12 days

Stock plans - Schedule of Activ

Stock plans - Schedule of Activity Related to Restricted Stock (Details) - 2017 Plan - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Nonvested, January 1	36,281	31,923	25,984
Granted shares	19,787	19,818	16,269
Vested shares	16,403	15,460	8,455
Forfeited shares	195	0	1,875
Nonvested, December 31	39,470	36,281	31,923

Employee benefit plans - Salari

Employee benefit plans - Salaries and Employee Benefits Expense - ESOP (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Peoples Security Bank and Trust ESOP
Peoples Security Bank and Trust ESOP
Contribution to ESOP	$ 0.2	$ 0.3	$ 0.4

Employee benefit plans - Sala_2

Employee benefit plans - Salaries and Employee Benefits Expense - Profit Sharing (Details) - Retirement Profit Sharing Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Profit Sharing plan
Company contribution	$ 1.3	$ 1.2	$ 1.2
Safe harbor contribution	0.7	0.7	0.7
Discretionary contributions	$ 0.6	$ 0.6	$ 0.6

Employee benefit plans - Sala_3

Employee benefit plans - Salaries and Employee Benefits Expense - SERP and Employee Pension Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 22, 2008
Supplemental Executive Retirement Plans ("SERP")
Defined Benefit Plan Disclosure
Maximum annual benefit in excess of federal limits (as a percent)	6%
Employee benefit plan liability	$ 161
Employee benefit plan expense	20	$ 19	$ 9
Defined benefit plan accrued liabilities	2,800	2,600
Salaries and employee benefits expense	$ 400	400	$ 500
Pension Benefits
Defined Benefit Plan Disclosure
Retirement age period for fixed benefits payable	65 years
Benefits accrued under employees' pension plan				$ 0
Increase (decrease) in accumulated benefit obligation	$ (3,900)	$ (600)
Discount rate, Obligation	4.93%	2.59%	2.25%

Employee benefit plans - Summar

Employee benefit plans - Summary of Pension and Postretirement Life Insurance Plans (Details) - Pension Benefits - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Change in benefit obligation:
Benefit obligation, beginning	$ 18,066	$ 19,113
Interest cost	456	419	$ 544
Change in experience gain	26	(49)
Change in actuarial assumptions loss	(3,899)	(603)
Benefits paid	(857)	(814)
Benefit obligation, ending	13,792	18,066	19,113
Change in plan assets:
Fair value of plan assets, beginning	19,257	17,628
Actual return on plan assets	(2,294)	2,443
Benefits paid	(857)	(814)
Fair value of plan assets, ending	16,106	19,257	$ 17,628
Funded status at end of year	$ 2,314	$ 1,191

Employee benefit plans - Schedu

Employee benefit plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Amounts recognized in the accumulated other comprehensive income (loss) consist of:
Net amount recognized	$ 4,315	$ 4,636
Pension Benefits
Defined Benefit Plan Disclosure
(Other Assets)	(2,314)	(1,190)
Amounts recognized in the accumulated other comprehensive income (loss) consist of:
Net actuarial gain	(5,499)	(5,868)
Deferred taxes	1,184	1,232
Net amount recognized	(4,315)	(4,636)
Accumulated benefit obligation	$ 13,792	$ 18,066	$ 19,113

Employee benefit plans - Compon

Employee benefit plans - Components of Net Periodic Pension Expense (Income) and Other Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net loss (gain)	$ 5,499	$ 5,868
Pension Benefits
Components of net periodic pension cost:
Interest cost	456	419	$ 544
Expected return on plan assets	(1,407)	(1,288)	(1,236)
Amortization of unrecognized net loss	198	301	218
Net periodic pension income:	(753)	(568)	(474)
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net loss (gain)	456	419	544
Deferred tax	(96)	(88)	(114)
Total recognized in other comprehensive income (loss)	360	331	430
Total recognized in net period pension cost and other comprehensive income (loss)	$ (393)	$ (237)	$ (44)

Employee benefit plans - Sche_2

Employee benefit plans - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations and Related Expenses (Details) - Pension Benefits	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure
Discount rate, Obligation	4.93%	2.59%	2.25%
Discount rate, Expense	2.59%	2.25%	3.25%
Expected long-term return on plan assets	7.50%	7.50%	7.50%

Employee benefit plans - Sche_3

Employee benefit plans - Schedule of Pension Plan Weighted-Average Asset Allocations (Details) - Pension Benefits	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure
Weighted-average asset allocations	100%	100%
Cash and cash equivalents
Defined Benefit Plan Disclosure
Weighted-average asset allocations	4.70%	4.80%
Equity securities
Defined Benefit Plan Disclosure
Weighted-average asset allocations	60.30%	67.40%
Corporate bonds
Defined Benefit Plan Disclosure
Weighted-average asset allocations	19.50%	19.60%
U.S. Treasuries and Government agencies
Defined Benefit Plan Disclosure
Weighted-average asset allocations	15.50%	8.20%

Employee benefit plans - Fair V

Employee benefit plans - Fair Value Measurement of Pension Plan Assets (Details) - Pension Benefits - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure
Fair value of pension plan assets	$ 16,106	$ 19,257	$ 17,628
Cash and cash equivalents
Defined Benefit Plan Disclosure
Fair value of pension plan assets	759	918
U.S. large cap
Defined Benefit Plan Disclosure
Fair value of pension plan assets	7,365	11,940
International
Defined Benefit Plan Disclosure
Fair value of pension plan assets	2,338	1,039
U.S. Treasury securities
Defined Benefit Plan Disclosure
Fair value of pension plan assets	511	214
U.S. Government Agencies
Defined Benefit Plan Disclosure
Fair value of pension plan assets	1,991	1,371
Corporate debt securities
Defined Benefit Plan Disclosure
Fair value of pension plan assets	3,142	3,775
Level 1
Defined Benefit Plan Disclosure
Fair value of pension plan assets	10,462	13,897
Level 1 \| Cash and cash equivalents
Defined Benefit Plan Disclosure
Fair value of pension plan assets	759	918
Level 1 \| U.S. large cap
Defined Benefit Plan Disclosure
Fair value of pension plan assets	7,365	11,940
Level 1 \| International
Defined Benefit Plan Disclosure
Fair value of pension plan assets	2,338	1,039
Level 2
Defined Benefit Plan Disclosure
Fair value of pension plan assets	5,644	5,360
Level 2 \| U.S. Treasury securities
Defined Benefit Plan Disclosure
Fair value of pension plan assets	511	214
Level 2 \| U.S. Government Agencies
Defined Benefit Plan Disclosure
Fair value of pension plan assets	1,991	1,371
Level 2 \| Corporate debt securities
Defined Benefit Plan Disclosure
Fair value of pension plan assets	$ 3,142	$ 3,775

Employee benefit plans - Sala_4

Employee benefit plans - Salaries and Employee Benefits Expense - Investment Percentages (Details) - Pension Benefits - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure
Amount of company's common stock included in equity securities	$ 0	$ 0
Equity Securities
Defined Benefit Plan Disclosure
Maximum diversification (as a percent)	10%
Maximum \| Industry Sector
Defined Benefit Plan Disclosure
Maximum diversification (as a percent)	20%
Cash Equivalents
Defined Benefit Plan Disclosure
Defined benefit plan, target allocation (as a percent)	10%
Fixed Income
Defined Benefit Plan Disclosure
Defined benefit plan, target allocation (as a percent)	40%
Equity
Defined Benefit Plan Disclosure
Defined benefit plan, target allocation (as a percent)	50%

Employee benefit plans - Sche_4

Employee benefit plans - Schedule of Benefit Payments Expected to be Paid (Details) - Pension Benefits $ in Thousands	Dec. 31, 2022 USD ($)
Defined Benefit Plan Disclosure
2023	$ 907
2024	955
2025	987
2026	1,009
2027	1,016
Thereafter	$ 4,959

Income taxes - Current and Defe

Income taxes - Current and Deferred Amounts of Provision for Income Taxes Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income taxes
Current	$ 6,665	$ 9,548	$ 6,600
Deferred	611	450	(1,779)
Total income tax expense	$ 7,276	$ 9,998	$ 4,821

Income taxes - Components of Ne

Income taxes - Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Allowance for loan losses	$ 5,916	$ 5,960
Lease liability	1,787	1,846
Defined benefit plan	1,798
Deferred compensation	860	884
Deferred loan fees		1,215
Deferred loan fees and costs	59
Investment securities available-for-sale	14,266	379
Other	196	86
Total	24,882	10,370
Deferred tax liabilities:
Lease right-of-use assets	1,718	1,798
Premises and equipment, net	1,692	1,441
Merger related accounting	472	572
Deferred loan costs		885
Defined benefit plan		75
Investment securities available-for-sale	1,872
Other	389	244
Total	6,143	5,015
Net deferred tax asset	$ 18,739	$ 5,355

Income taxes - Reconciliation o

Income taxes - Reconciliation of Effective Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income taxes
Provision for income tax at statutory rate	$ 9,527	$ 11,239	$ 7,177
State tax, net of federal benefit	216	475
Tax exempt interest	(1,400)	(1,194)	(1,032)
Bank owned life insurance income	(205)	(119)	(299)
Residential housing program tax credits	(911)	(1,091)	(1,094)
Other, net	49	688	69
Total income tax expense	$ 7,276	$ 9,998	$ 4,821
Provision for income tax at statutory rate	21%	21%	21%
State tax, net of federal benefit	0.63%	0.89%
Tax exempt interest	(3.09%)	(2.23%)	(3.02%)
Bank owned life insurance income	(0.45%)	(0.22%)	(0.87%)
Residential housing program tax credits	(2.01%)	(2.04%)	(3.20%)
Other, net	(0.04%)	1.29%	0.19%
Total income tax expense	16.04%	18.69%	14.10%

Parent Company financial stat_3

Parent Company financial statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets:
Cash and cash equivalents	$ 37,868	$ 279,933
Equity securities	110	140
Other assets	46,071	27,701
Total assets	3,553,515	3,369,483
Liabilities and Stockholders' Equity:
Subordinated debt	33,000	33,000
Accrued interest payable	903	408
Other liabilities	42,179	29,841
Stockholders' equity	315,350	340,126	$ 316,877	$ 299,010
Total liabilities and stockholders' equity	3,553,515	3,369,483
Peoples Bank
Assets:
Cash and cash equivalents	359	4,044	$ 1,069	$ 5,192
Equity securities	110	140
Investment in bank subsidiary	346,734	368,427
Other assets	1,295	703
Total assets	348,498	373,314
Liabilities and Stockholders' Equity:
Subordinated debt	33,000	33,000
Accrued interest payable	148	148
Other liabilities		40
Stockholders' equity	315,350	340,126
Total liabilities and stockholders' equity	$ 348,498	$ 373,314

Parent Company financial stat_4

Parent Company financial statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest income:
Dividends from subsidiaries	$ 2	$ 74	$ 97
Net gain realized on sale of equity securities	(31)	2	(6)
Unrealized holding gains (losses) on equity securities	31	(2)
Expense:
Interest expense on subordinated debt	1,774	1,774	1,035
Income tax benefit	7,276	9,998	4,821
Net income	38,090	43,519	29,354
Peoples Bank
Interest income:
Dividends from subsidiaries	11,325	17,593	10,518
Other income	3	4	8
Net gain realized on sale of equity securities			29
Unrealized holding gains (losses) on equity securities	(31)	2	(35)
Total income	11,297	17,599	10,520
Expense:
Interest expense on subordinated debt	1,774	1,774	1,035
Other expenses	1,188	222	200
Total expenses	2,962	1,996	1,235
Interest expense on subordinated debt	8,335	15,603	9,285
Income tax benefit	(624)	(410)	(255)
Income before undistributed income of subsidiaries	8,959	16,013	9,540
Equity in undistributed net income of subsidiaries	29,131	27,506	19,814
Net income	$ 38,090	$ 43,519	$ 29,354

Parent Company financial stat_5

Parent Company financial statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 38,090	$ 43,519	$ 29,354
Adjustments:
Net losses (gains) on investment securities	1,976		(918)
Decrease in other assets	(1,701)	1,128	(12,268)
Increase (decrease) in other liabilities	(48)	1,875	13,549
Stock based compensation	534	546	570
Net cash provided by operating activities	42,357	40,771	37,180
Cash flows from investing activities:
Net cash used in investing activities	(467,819)	(440,103)	(201,240)
Cash flows used in financing activities:
Retirement of common stock	(1,253)	(2,361)	(6,893)
Net cash provided by financing activities	183,397	451,073	361,099
Increase (decrease) in cash and cash equivalents	(242,065)	51,741	197,039
Cash and cash equivalents at beginning of period	279,933
Cash and cash equivalents at end of period	37,868	279,933
Peoples Bank
Cash flows from operating activities:
Net income	38,090	43,519	29,354
Adjustments:
Net losses (gains) on investment securities	31	(2)	6
Undistributed net income of subsidiaries	(29,131)	(27,506)	(19,814)
Decrease in other assets	(591)	(429)	(255)
Increase (decrease) in other liabilities	(40)		148
Stock based compensation	534	546	570
Net cash provided by operating activities	8,893	16,128	10,009
Cash flows from investing activities:
Sale of equity securities			279
Net cash used in investing activities			279
Cash flows used in financing activities:
Investment in subsidiary			(30,000)
Retirement of common stock	(1,253)	(2,361)	(6,893)
Cash dividends paid	(11,325)	(10,792)	(10,518)
Net cash provided by financing activities	(12,578)	(13,153)	(14,411)
Increase (decrease) in cash and cash equivalents	(3,685)	2,975	(4,123)
Cash and cash equivalents at beginning of period	4,044	1,069	5,192
Cash and cash equivalents at end of period	$ 359	$ 4,044	1,069
Subordinated debentures
Cash flows used in financing activities:
Proceeds from long-term debt			33,000
Subordinated debentures \| Peoples Bank
Cash flows used in financing activities:
Proceeds from long-term debt			$ 33,000

Regulatory matters (Details)

Regulatory matters (Details) - USD ($)		12 Months Ended
Regulatory matters (Details) - USD ($)	Jan. 01, 2016	Dec. 31, 2022	Dec. 31, 2021
Schedule of Capitalization
Capital stock (as a percent)		100%
Period over which the Company may only declare and pay dividends out of accumulated net earnings, including accumulated net earnings acquired as a result of a merger		7 years
Funds available for transfers		$ 36,700,000
Loans outstanding		$ 0	$ 0
Capital conservation buffer	2.50%
Maximum
Schedule of Capitalization
Net earnings which must set aside as a surplus (as a percent)		10%
Minimum
Schedule of Capitalization
Net earnings to surplus funds (as a percent)		10%

Regulatory matters - Schedule o

Regulatory matters - Schedule of Bank's Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Consolidated
Common equity Tier 1 capital to risk-weighted assets
Common equity Tier 1 capital to risk-weighted assets, Actual Amount	$ 308,211	$ 281,802
Common equity Tier 1 capital to risk-weighted assets, Actual Ratio	0.1113	0.1232
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 124,569	$ 102,949
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0450	0.0450
Tier 1 capital to risk-weighted assets
Tier 1 capital to risk-weighted assets, Actual Amount	$ 308,211	$ 281,802
Tier 1 capital to risk-weighted assets, Actual Ratio	0.1113	0.1232
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 166,093	$ 137,266
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0600	0.0600
Total capital to risk-weighted assets
Total capital to risk-weighted assets, Actual Amount	$ 335,683	$ 310,185
Total capital to risk-weighted assets, Actual Ratio	0.1213	0.1356
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 221,457	$ 183,021
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0800	0.0800
Tier 1 capital to average assets
Tier 1 capital to average assets, Actual Amount	$ 308,211	$ 281,802
Tier 1 capital to average assets, Actual Ratio	0.0903	0.0916
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount	$ 136,559	$ 123,013
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio	0.0400	0.0400
Peoples Bank
Common equity Tier 1 capital to risk-weighted assets
Common equity Tier 1 capital to risk-weighted assets, Actual Amount	$ 339,596	$ 310,102
Common equity Tier 1 capital to risk-weighted assets, Actual Ratio	0.1227	0.1376
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 124,563	$ 101,449
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0450	0.0450
Common equity Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount	$ 179,924	$ 146,538
Common equity Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0650	0.0650
Tier 1 capital to risk-weighted assets
Tier 1 capital to risk-weighted assets, Actual Amount	$ 339,596	$ 310,102
Tier 1 capital to risk-weighted assets, Actual Ratio	0.1227	0.1376
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 166,083	$ 135,266
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0600	0.0600
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount	$ 221,444	$ 180,355
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0800	0.0800
Total capital to risk-weighted assets
Total capital to risk-weighted assets, Actual Amount	$ 367,068	$ 338,284
Total capital to risk-weighted assets, Actual Ratio	0.1326	0.1501
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 221,444	$ 180,355
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0800	0.0800
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount	$ 276,806	$ 225,443
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.1000	0.1000
Tier 1 capital to average assets
Tier 1 capital to average assets, Actual Amount	$ 339,596	$ 310,102
Tier 1 capital to average assets, Actual Ratio	0.0969	0.0958
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount	$ 140,167	$ 129,476
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio	0.0400	0.0400
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount	$ 175,209	$ 161,845
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0500	0.0500

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss)
Net unrealized loss on investment securities available-for-sale	$ (66,250)	$ (1,791)
Income tax benefit	(14,266)	(376)
Net of income taxes	(51,984)	(1,415)
Benefit plan adjustments	(5,499)	(5,868)
Income tax benefit	(1,184)	(1,232)
Net of income taxes	(4,315)	(4,636)
Derivative adjustments	(47)	680
Income tax (benefit) expense	(10)	143
Net of income taxes	(37)	537
Accumulated other comprehensive loss	$ (56,336)	$ (5,514)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss)
Unrealized loss on investment securities available-for-sale	$ (66,435)	$ (11,487)	$ 8,779
Net loss (gain) on the sale of investment securities available-for-sale	1,976		(918)
Other comprehensive (loss) income on available-for-sale debt securities	(64,459)	(11,487)	7,861
Amortization of actuarial loss (2)	198	301	218
Actuarial gain (loss)	172	1,808	(1,616)
Net change in benefit plan liabilities	370	2,109	(1,398)
Net change in derivatives	(728)	(322)	315
Other comprehensive (loss) income	(64,817)	(9,700)	6,778
Income (benefit) tax	(13,995)	(2,037)	1,424
Other comprehensive (loss) income	$ (50,822)	$ (7,663)	$ 5,354