Peoples Financial Services (PFIS) 10-Q9 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Nov. 01, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,040,851
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001056943
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Cash and cash equivalents
Cash and due from banks	$ 39,285	$ 37,675
Interest-bearing deposits in other banks	9,550	193
Federal funds sold	205,700
Total cash and cash equivalents	254,535	37,868
Investment securities:
Available-for-sale	382,227	477,703
Equity investments carried at fair value	92	110
Held-to-maturity: Fair value September 30, 2023, $68,809; December 31, 2022, $76,563	86,246	91,179
Total investment securities	468,565	568,992
Loans	2,870,969
Less: allowance for credit losses	23,010	27,472
Net loans	2,847,959
Loans		2,730,116
Less: allowance for credit losses		27,472
Net loans		2,702,644
Goodwill	63,370	63,370
Premises and equipment, net	61,936	55,667
Bank owned life insurance	49,123	48,344
Deferred tax assets	17,956	18,739
Accrued interest receivable	12,769	11,715
Intangible assets, net	19	105
Other assets	49,567	46,071
Total assets	3,825,799	3,553,515
Deposits:
Noninterest-bearing	691,071	772,765
Interest-bearing	2,674,012	2,273,833
Total deposits	3,365,083	3,046,598
Short-term borrowings	27,020	114,930
Long-term debt	25,000	555
Subordinated debentures	33,000	33,000
Accrued interest payable	4,777	903
Other liabilities	46,529	42,179
Total liabilities	3,501,409	3,238,165
Stockholders' equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,040,852 shares at September 30, 2023 and 7,158,017 shares at December 31, 2022	14,093	14,321
Capital surplus	121,870	126,850
Retained earnings	247,857	230,515
Accumulated other comprehensive loss	(59,430)	(56,336)
Total stockholders' equity	324,390	315,350
Total liabilities and stockholders' equity	$ 3,825,799	$ 3,553,515

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Held-to-maturity, Fair value	$ 68,808	$ 76,563
Common stock, par value	$ 2	$ 2
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	7,040,852	7,158,017
Common stock, shares outstanding	7,040,852	7,158,017

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest and fees on loans:
Taxable	$ 33,095	$ 25,128	$ 95,283	$ 67,990
Tax-exempt	1,411	1,338	4,205	3,717
Interest and dividends on investment securities:
Taxable	1,920	2,096	5,973	6,176
Tax-exempt	375	521	1,210	1,546
Dividends			4	2
Interest on interest-bearing deposits in other banks	91	41	190	61
Interest on federal funds sold	1,873	106	2,914	201
Total interest income	38,765	29,230	109,779	79,693
Interest expense:
Interest on deposits	16,481	3,316	39,805	6,381
Interest on short-term borrowings	291	457	1,590	579
Interest on long-term debt	273	16	569	67
Interest on subordinated debt	443	443	1,330	1,330
Total interest expense	17,488	4,232	43,294	8,357
Net interest income	21,277	24,998	66,485	71,336
(Credit to) provision for credit losses	(166)	450	(1,103)	1,700
Net interest income after (credit to) provision for credit losses	21,443	24,548	67,588	69,636
Noninterest income:
Mortgage banking income	87	135	295	407
Increase in cash surrender value of life insurance	270	269	790	731
Interest rate swap revenue	266	130	512	757
Net losses on equity investment securities		(18)	(17)	(37)
Net gains on sale of investment securities available for sale			81
Total noninterest income	3,692	3,317	10,918	10,619
Noninterest expense:
Salaries and employee benefits expense	8,784	8,474	26,346	24,365
Net occupancy and equipment expense	4,298	4,025	12,678	12,061
Acquisition related expense	869		990
Amortization of intangible assets	29	96	86	289
Net gains on sale of other real estate owned	(18)		(18)	(478)
Professional fees and outside services	687	733	1,960	1,969
FDIC insurance and assessments	508	324	1,565	969
Donations	389	373	1,254	1,038
Other expenses	1,508	1,910	5,361	5,504
Total noninterest expense	17,054	15,935	50,222	45,717
Income before income taxes	8,081	11,930	28,284	34,538
Provision for income tax expense	1,335	1,962	4,534	5,587
Net income	6,746	9,968	23,750	28,951
Other comprehensive (loss) income:
Unrealized loss on investment securities available for sale	(10,378)	(21,510)	(4,690)	(72,791)
Reclassification adjustment for net gain on sales included in net income			(81)
Change in derivative fair value	747	(46)	826	(740)
Other comprehensive loss	(9,631)	(21,556)	(3,945)	(73,531)
Income tax benefit related to other comprehensive loss	(2,074)	(4,527)	(851)	(15,442)
Other comprehensive loss, net of income tax benefit	(7,557)	(17,029)	(3,094)	(58,089)
Comprehensive (loss) income	$ (811)	$ (7,061)	$ 20,656	$ (29,138)
Per share data:
Basic	$ 0.95	$ 1.39	$ 3.33	$ 4.04
Diluted	$ 0.95	$ 1.38	$ 3.31	$ 4.01
Average common shares outstanding:
Basic	7,088,745	7,169,809	7,130,506	7,171,382
Diluted	7,120,685	7,213,147	7,165,570	7,214,966
Dividends declared	$ 0.41	$ 0.40	$ 1.23	$ 1.18
Service charges, fees, commissions and other
Noninterest income:
Revenue from contracts with customers	$ 1,900	$ 1,714	$ 5,847	$ 5,167
Merchant services income
Noninterest income:
Revenue from contracts with customers	170	157	542	833
Commission and fees on fiduciary activities
Noninterest income:
Revenue from contracts with customers	606	591	1,691	1,697
Wealth management income
Noninterest income:
Revenue from contracts with customers	$ 393	$ 339	$ 1,177	$ 1,064

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock	Capital Surplus	Retained Earnings Cumulative impact of adoption	Retained Earnings	Accumulated Other Comprehensive Loss	Cumulative impact of adoption	Total
Balance at Dec. 31, 2021	$ 14,341	$ 127,549		$ 203,750	$ (5,514)		$ 340,126
Net Income (Loss)				9,630			9,630
Other comprehensive income (loss), net of income tax					(26,153)		(26,153)
Dividends declared				(2,796)			(2,796)
Stock based compensation		(28)					(28)
Restricted stock issued	24	(24)
Share retirement	(13)	(305)					(318)
Balance at Mar. 31, 2022	14,352	127,192		210,584	(31,667)		320,461
Balance at Dec. 31, 2021	14,341	127,549		203,750	(5,514)		340,126
Net Income (Loss)							28,951
Other comprehensive income (loss), net of income tax							(58,089)
Balance at Sep. 30, 2022	14,330	126,845		224,238	(63,603)		301,810
Balance at Mar. 31, 2022	14,352	127,192		210,584	(31,667)		320,461
Net Income (Loss)				9,353			9,353
Other comprehensive income (loss), net of income tax					(14,907)		(14,907)
Dividends declared				(2,798)			(2,798)
Stock based compensation		116					116
Restricted stock issued	8	(8)
Share retirement	(14)	(314)					(328)
Balance at Jun. 30, 2022	14,346	126,986		217,139	(46,574)		311,897
Net Income (Loss)				9,968			9,968
Other comprehensive income (loss), net of income tax					(17,029)		(17,029)
Dividends declared				(2,869)			(2,869)
Stock based compensation		223					223
Share retirement	(16)	(364)					(380)
Balance at Sep. 30, 2022	14,330	126,845		224,238	(63,603)		301,810
Balance (ASU 2016-13) at Dec. 31, 2022			$ 2,364			$ 2,364
Balance at Dec. 31, 2022	14,321	126,850		230,515	(56,336)		315,350
Net Income (Loss)				7,579			7,579
Other comprehensive income (loss), net of income tax					6,894		6,894
Dividends declared				(2,936)			(2,936)
Stock based compensation		209					209
Restricted stock issued	35	(35)
Share retirement	(33)	(793)					(826)
Balance at Mar. 31, 2023	14,323	126,231		237,522	(49,442)		328,634
Balance (ASU 2016-13) at Dec. 31, 2022			$ 2,364			$ 2,364
Balance at Dec. 31, 2022	14,321	126,850		230,515	(56,336)		315,350
Net Income (Loss)							23,750
Other comprehensive income (loss), net of income tax							(3,094)
Balance at Sep. 30, 2023	14,093	121,870		247,857	(59,430)		324,390
Balance at Mar. 31, 2023	14,323	126,231		237,522	(49,442)		328,634
Net Income (Loss)				9,425			9,425
Other comprehensive income (loss), net of income tax					(2,431)		(2,431)
Dividends declared				(2,930)			(2,930)
Stock based compensation		160					160
Share retirement	(51)	(1,020)					(1,071)
Balance at Jun. 30, 2023	14,272	125,371		244,017	(51,873)		331,787
Net Income (Loss)				6,746			6,746
Other comprehensive income (loss), net of income tax					(7,557)		(7,557)
Dividends declared				(2,906)			(2,906)
Stock based compensation		259					259
Share retirement	(179)	(3,760)					(3,939)
Balance at Sep. 30, 2023	$ 14,093	$ 121,870		$ 247,857	$ (59,430)		$ 324,390

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
Dividends declared (in dollars per share)	$ 0.41	$ 0.41	$ 0.41	$ 0.40	$ 0.39	$ 0.39
Restricted stock issued, shares			17,640		4,071	12,332
Share retirement, shares	89,558	25,555	16,573	7,911	6,853	6,714
Unearned income					$ 210	$ 210

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Cash flows from operating activities:
Net income	$ 23,750	$ 28,951
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	2,051	2,051
Amortization of right-of-use lease asset	454	443
Amortization of deferred loan fees, net	493	1,314
Amortization of intangibles	86	289
Amortization of low income housing partnerships	310	362
(Credit to) provision for credit losses	(1,103)	1,700
Net unrealized loss on equity investment securities	17	37
Net gain on sale of other real estate owned	(18)	(478)
Loans originated for sale	(3,511)	(6,139)
Proceeds from sale of loans originated for sale	3,499	5,937
Net loss (gain) on sale of loans originated for sale	12	(43)
Net amortization of investment securities	774	1,146
Net gain on sale of investment securities available-for-sale	(81)
Loss on sale of premises and equipment	3
Increase in cash surrender value of life insurance	(790)	(731)
Deferred income tax expense	983
Stock compensation, including tax effects and expenses	628	311
Net change in:
Accrued interest receivable	(1,054)	(1,555)
Other assets	(3,581)	(1,911)
Accrued interest payable	3,874	721
Other liabilities	(2,489)	(2,180)
Net cash provided by operating activities	24,307	30,225
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale	67,363
Proceeds from repayments of investment securities:
Available-for-sale	22,740	35,314
Held-to-maturity	4,845	4,188
Purchases of investment securities:
Available-for-sale		(69,392)
Held-to-maturity		(25,872)
Net redemption (purchase of) of restricted equity securities	3,966	(457)
Net increase in loans	(141,422)	(296,108)
Investment in bank owned life insurance		(5,881)
Purchases of premises and equipment	(5,697)	(5,386)
Proceeds from the sale of premises and equipment	14
Proceeds from bank owned life insurance		1,132
Proceeds from sale of other real estate owned	139	967
Net cash used in investing activities	(48,052)	(361,495)
Cash flows from financing activities:
Net increase in deposits	318,485	160,743
Proceeds from long-term debt	25,000
Repayment of long-term debt	(555)	(1,607)
Net (decrease) increase in short-term borrowings	(87,910)	14,700
Retirement of common stock	(5,836)	(1,026)
Cash dividends paid	(8,772)	(8,463)
Net cash provided by financing activities	240,412	164,347
Net increase (decrease) in cash and cash equivalents	216,667	(166,923)
Cash and cash equivalents at beginning of period	37,868	279,933
Cash and cash equivalents at end of period	254,535	113,010
Supplemental disclosures:
Interest	39,420	7,636
Income taxes	3,072	$ 7,395
Noncash items:
Initial recognition of right-of-use assets	3,878
Initial recognition of lease liability	$ 3,878

Summary of significant accounti

Summary of significant accounting policies	9 Months Ended
Summary of significant accounting policies	Sep. 30, 2023
Summary of significant accounting policies
Summary of significant accounting policies	1. Summary of significan t accounting policies: Nature of operations Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“the Bank”), collectively, the “Company” or “Peoples”. The Company services its retail and commercial customers through Basis of presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the three and nine months ended and as of September 30, 2023, are not necessarily indicative of the results of consolidated operations and financial position that may be expected in the future. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for credit losses, fair value of financial instruments, the valuation of deferred tax assets, and impairment of goodwill. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, reference is made to the Company’s Annual Report on Form 10-K for the period ended December 31, 2022. Pending Merger with FNCB Bancorp, Inc. On September 27, 2023, the Company entered into an Agreement and Plan of Merger (Merger Agreement) with FNCB Bancorp, Inc. (FNCB), a Pennsylvania Corporation and the parent company of FNCB Bank, pursuant to which FNCB will merge with and into the Company, with the Company as the surviving entity. Immediately after such merger, FNCB Bank will merge with and into the Bank, with the Bank as the surviving bank and a wholly-owned subsidiary of the Company. Under the terms of the Merger Agreement, which has been unanimously approved by the boards of directors of both companies, shareholders of FNCB will be entitled to receive a fixed exchange ratio of 0.1460 shares of the Company's common stock for each share of the FNCB’s common stock. On October 27, 2023, the Company and FNCB jointly filed a Federal Deposit Insurance Corporation ("FDIC") Interagency Bank Merger Application with the FDIC New York Regional Office and the Company filed a Pennsylvania Bank Merger Application with the Pennsylvania Department of Banking and Securities. Completion of the merger requires, among other things, the approval from these regulatory authorities, as well as the shareholders of the Company and FNCB. The Merger Agreement provides certain termination rights for both the Company and FNCB and further provides that a termination fee of $4.8 million will be payable by either the Company or FNCB, as applicable, upon termination of the Merger Agreement under certain circumstances. The foregoing summary is not complete and is qualified in all respects by reference to the actual language of the Merger Agreement filed by the Company as Exhibit 2.1 to this Quarterly Report on Form 10-Q. Pending regulatory and shareholder approvals, the Company expects the merger to be consummated in the first half of 2024, however, there can be no assurance that the transaction will be consummated by such date, or at all. Immaterial Prior Period Adjustment During the quarter-ended June 30, 2023, the Company became aware that the unaudited consolidated financial statements for the three months ended March 31, 2023 contained an immaterial misstatement. The Company determined that the allowance for credit losses was overstated by $1.5 million as of March 31, 2023. The adjustment consisted of $1.1 million related to the adoption of Accounting Standards Update ( ASU) 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” that the Company adopted effective January 1, 2023 and a $0.4 million reduction in the first quarter 2023 provision for credit loss requirement. This immaterial misstatement was identified during the second quarter review of the Company’s loan segment loss rates and an adjustment was made to the municipal loan segment to better align its loss rates with the risk inherent in this loan product. The Company evaluated this prior period adjustment in accordance with SEC Staff Accounting Bulletin (SAB) 99, Materiality (ASC 250-10-S99) and based on its quantitative and qualitative analysis determined that this prior period adjustment was not material to the consolidated financial statements of any of the impacted unaudited 2023 periods. Therefore, an amendment to the previously filed quarterly report on Form 10-Q as of March 31, 2023 was not required . Consequently, the Company elected to correct this prior period adjustment in the three month period ended June 30, 2023. The cumulative impact $1.1 million credit to the provision for credit losses and reduction in the allowance for credit losses is reflected in the unaudited consolidated financial statements for the nine months ended September 30, 2023. Fourth Quarter Dividend Decl aration On October 27, 2023, the Board of Directors declared a fourth quarter dividend of $0.41 per share. The dividend is payable on December 15, 2023 to shareholders of record as of November 30, 2023. Adoption of New Accounting Standard On January 1, 2023, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) model. The Company adopted ASU 2016-13 using a modified retrospective approach. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. At adoption, the Company decreased its allowance for credit losses by $3.0 million. Upon adoption the Company recorded a cumulative effect adjustment that increased stockholders’ equity by $2.4 million, net of tax. The Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures” effective January 1, 2023. The ASU addresses and amends areas identified by the Financial Accounting Standards Board ("FASB") as part of its post-implementation review of the accounting standard that introduced the current expected credit losses model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. Allowance for Credit Losses The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated balance sheets. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated balance sheets in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense in the consolidated statements of income and comprehensive (loss) income. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include residential real estate, consumer, commercial and industrial, commercial real estate and municipal. At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company estimates the allowance for credit losses on loans using an advanced probability of default model which incorporates probability of default, loss given default, exposure at default and probability of attrition attributes. The model considers relevant available information at both the portfolio and loan level from internal data that is supplemented by shared data pool information. The model also incorporates reasonable and supportable economic forecasts. After the reasonable and supportable forecast period, the model reverts to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. Also included in the allowance for credit losses on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis described above. Factors that the Company considers include changes in lending policies and procedures, changes in management, changes in the quality of the loan review process, the existence of any concentrations of credit and other external factors. Individually Evaluated Loans On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. The Bank has determined that any loans currently on nonaccrual status or are 90 or more days past due and still accruing are considered impaired and should be individually evaluated for losses. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will establish a reserve for the difference between the fair value of the collateral, less costs to sell and carrying costs at the reporting date and the amortized cost basis of the loan. If this amount is deemed uncollectible, the Company will charge-off that amount. Acquired Loans Acquired loans are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired loan is recorded depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans. Under FASB ASC Topic 326, a PCD asset is defined as an individual financial asset that as of the date of acquisition has experienced a more than insignificant deterioration in credit quality since origination as determined during the acquisition process. Upon identification of these assets, the amortized cost basis will be adjusted at the time of acquisition to reflect any impairment amount. After acquisition, PCD loans will be either collectively evaluated for reserve requirements or individually evaluated if on nonaccrual status or are 90 or more days past due and still accruing. Allowance for Credit Losses on Off-Balance Sheet Commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated balance sheets and the related credit expense is recorded in other non-interest expense in the consolidated statements of income and comprehensive (loss) income. Allowance for Credit Losses on Held to Maturity Securities The Company’s portfolio of held to maturity securities consists of municipal bonds and U.S. agency residential mortgage-backed securities which are highly rated by major rating agencies and have a long history of no credit losses. In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized. Allowance for Credit Losses on Available for Sale Securities For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive (loss) income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses. Accrued Interest Receivable The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans, available for sale securities, and held to maturity securities. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the Consolidated Balance Sheets, totaled $10.6 million at September 30, 2023 and is excluded from the estimate of credit losses. Accrued interest receivable on available for sale securities and held to maturity securities, also a component of accrued interest receivable on the Consolidated Balance Sheets, and totaled $1.6 million and $185 thousand, respectively, at September 30, 2023 and is excluded from the estimate of credit losses. Recent accounting standards From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the required effective dates. The following should be read in conjunction with "Note 1 Summary of significant accounting policies" of the Notes to the Consolidated Financial Statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2022. Unless otherwise discussed, management believes the impact of any recently issued standards, including those issued but not yet effective, will not have a material impact on the Company’s consolidated financial statements. ASU 2023-01, “Leases (Topic 842) - Common Control Arrangements” (ASU 2023-01) requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with an unrelated party (on the basis of legally enforceable terms and conditions). ASU 2023-01 is effective January 1, 2024 and is not expected to have an impact on our consolidated financial statements. ASU 2023-02 “Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (ASU 2023-02) permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective January 1, 2024 and is not expected to have an impact on our consolidated financial statements. ASU 2023-05 “Business Combinations - Joint Venture Formations (Subtopic 805-60) – Recognition and Initial Measurement” (ASU 2023-05) addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. ASU 2023-05 requires certain joint ventures to apply a new basis of accounting upon formation by recognizing and initially measuring most of their assets and liabilities at fair value. The objectives of the amendments are to provide decision-useful information to investors and other allocators of capital in a joint venture’s financial statements and also to reduce diversity in practice. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025 and is not expected to have an impact on our consolidated financial statements.

Other comprehensive loss

Other comprehensive loss	9 Months Ended
Other comprehensive loss	Sep. 30, 2023
Other comprehensive loss
Other comprehensive loss	2. Other comprehensive loss: T The components of accumulated other comprehensive loss included in stockholders’ equity at September 30, 2023 and December 31, 2022 are as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Net unrealized loss on investment securities available for sale $ (71,021) $ (66,250) Income tax benefit (15,294) (14,266) Net of income taxes (55,727) (51,984) Benefit plan adjustments (5,499) (5,499) Income tax benefit (1,184) (1,184) Net of income taxes (4,315) (4,315) Derivative adjustments 779 (47) Income tax expense (benefit) 167 (10) Net of income taxes 612 (37) Accumulated other comprehensive loss $ (59,430) $ (56,336)

Earnings per share

Earnings per share	9 Months Ended
Earnings per share	Sep. 30, 2023
Earnings per share
Earnings per share	3. Earnings per share: Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The following table presents the calculation of both basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2023 and 2022: (Dollars in thousands, except per share data) 2023 2022 For the Three Months Ended September 30, Basic Diluted Basic Diluted Net income $ 6,746 $ 6,746 $ 9,968 $ 9,968 Average common shares outstanding 7,088,745 7,120,685 7,169,809 7,213,147 Earnings per share $ 0.95 $ 0.95 $ 1.39 $ 1.38 (Dollars in thousands, except per share data) 2023 2022 For the Nine Months Ended September 30, Basic Diluted Basic Diluted Net income $ 23,750 $ 23,750 $ 28,951 $ 28,951 Average common shares outstanding 7,130,506 7,165,570 7,171,382 7,214,966 Earnings per share $ 3.33 $ 3.31 $ 4.04 $ 4.01

Investment securities

Investment securities	9 Months Ended
Investment securities	Sep. 30, 2023
Investment securities
Investment securities	4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at September 30, 2023 and December 31, 2022 are summarized as follows: September 30, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 197,833 $ $ 18,687 $ 179,146 U.S. government-sponsored enterprises 2,542 504 2,038 State and municipals: Taxable 67,866 13,879 53,987 Tax-exempt 76,343 14,545 61,798 Residential mortgage-backed securities: U.S. government agencies 796 47 749 U.S. government-sponsored enterprises 91,814 22,398 69,416 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,054 578 11,476 Corporate debt securities 4,000 383 3,617 Total $ 453,248 $ $ 71,021 $ 382,227 Held to maturity: Tax-exempt state and municipals $ 11,210 $ $ 1,304 $ 9,906 Residential mortgage-backed securities: U.S. government agencies 15,752 3,344 12,408 U.S. government-sponsored enterprises 59,284 12,790 46,494 Total $ 86,246 $ $ 17,438 $ 68,808 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 The Company had net unrealized losses on available for sale securities of $55.7 million net of deferred income taxes of $15.3 million at September 30, 2023 and net unrealized losses on available for sale securities of $52.0 million net of deferred income taxes of $14.3 million at December 31, 2022. During the nine month period ended September 30, 2023, investment securities, including U.S. Treasury bonds and mortgage-backed securities, with a par value of $65.6 million were sold at a net gain of $81 thousand. The proceeds were used to pay-down higher cost short-term borrowings. The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available for sale at September 30, 2023, is summarized as follows: Fair (Dollars in thousands) Value Within one year $ 9,592 After one but within five years 182,610 After five but within ten years 45,829 After ten years 60,516 298,547 Mortgage-backed and other amortizing securities 83,680 Total $ 382,227 The maturity distribution of the amortized cost and fair value, of debt securities classified as held to maturity at September 30, 2023, is summarized as follows: Amortized Fair (Dollars in thousands) Cost Value After one but within five years $ 569 $ 510 After five but within ten years 9,451 8,420 After ten years 1,190 976 11,210 9,906 Mortgage-backed securities 75,036 58,902 Total $ 86,246 $ 68,808 Securities with a carrying value of $137.9 million and $168.0 million at September 30, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and certain other deposits as required or permitted by law. Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At September 30, 2023 and December 31, 2022, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. government agencies and sponsored enterprises, which exceeded 10.0 percent of stockholders’ equity. The fair value and gross unrealized losses of investment securities with unrealized losses at September 30, 2023 and December 31, 2022, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: September 30, 2023 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 $ $ 43 $ 179,146 $ 18,687 43 $ 179,146 $ 18,687 U.S. government-sponsored enterprises 2 2,038 504 2 2,038 504 State and municipals: Taxable 1 985 16 65 53,002 13,863 66 53,987 13,879 Tax-exempt 10 5,083 265 103 66,465 15,584 113 71,548 15,849 Residential mortgage-backed securities: U.S. government agencies 8 13,157 3,391 8 13,157 3,391 U.S. government-sponsored enterprises 41 115,911 35,188 41 115,911 35,188 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 4 11,476 578 4 11,476 578 Corporate debt securities 6 3,617 383 6 3,617 383 Total 11 $ 6,068 $ 281 272 $ 444,812 $ 88,178 283 $ 450,880 $ 88,459 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-sponsored enterprises 4 11,584 544 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 As described in Note 1, on January 1, 2023 the Company adopted amended accounting guidance that requires an allowance for credit losses be deducted from the amortized cost basis of financial assets, including investment securities held to maturity, to present the net carrying value at the amount that is expected to be collected over the contractual term of the asset. The Company estimated no allowance for credit losses for its investment securities classified as held to maturity at January 1, 2023 or September 30, 2023, as the portfolio of held to maturity securities consists entirely of U.S. government sponsored enterprises, agencies and states and political subdivisions investments. The unrealized losses on securities are primarily due to the changes in market interest rates subsequent to purchase. In addition, the Company does not intend to sell and does not believe that it is more likely than not that it will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. The Company estimated no allowance for credit losses for its investment securities classified as available for sale debt securities at January 1, 2023 or September 30, 2023.

Loans, net and allowance for cr

Loans, net and allowance for credit losses	9 Months Ended
Loans, net and allowance for credit losses	Sep. 30, 2023
Loans, net and allowance for credit losses
Loans, net and allowance for credit losses	5. Loans, net and allowance for credit losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at September 30, 2023 and December 31, 2022 are summarized as follows. The Company had net deferred loan origination fees of $0.2 million and $0.3 million at September 30, 2023 and December 31, 2022, respectively. (Dollars in thousands) September 30, 2023 December 31, 2022 Commercial and Industrial $ 404,245 $ 433,048 Municipal 176,935 166,210 Total 581,180 599,258 Real estate Commercial 1,846,350 1,709,827 Residential 357,647 330,728 Total 2,203,997 2,040,555 Consumer Indirect Auto 78,953 76,461 Consumer Other 6,839 13,842 Total 85,792 90,303 Total $ 2,870,969 $ 2,730,116 The following tables present the balance of the allowance for credit losses at September 30, 2023 and 2022. For the three and nine months ended September 30, 2023, the balance of the allowance for credit losses is based on the CECL methodology, as presented in Note 1. For the three and nine months ended September 30, 2022, the allowance for loan losses is based upon the calculation methodology as described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The tables identify the valuation allowances attributable to specifically identified impairments on individually evaluated loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans evaluated collectively. The tables include the underlying balance of loans receivable applicable to each category as of those dates. (Dollars in thousands) Real estate September 30, 2023 Commercial Municipal Commercial Residential Consumer Total Allowance for credit losses: Beginning Balance July 1, 2023 $ 2,751 $ 827 $ 14,961 $ 3,767 $ 912 $ 23,218 Charge-offs (65) (65) Recoveries 4 3 16 23 Provisions (credits) (504) 40 134 128 36 (166) Ending balance $ 2,251 $ 867 $ 15,095 $ 3,898 $ 899 $ 23,010 (Dollars in thousands) Real estate September 30, 2022 Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance July 1, 2022 $ 6,522 $ 1,244 $ 17,569 $ 3,220 $ 819 $ 29,374 Charge-offs (15) (86) (101) Recoveries 10 32 1 56 99 Provisions (credits) (12) 7 437 9 9 450 Ending balance $ 6,520 $ 1,251 $ 18,023 $ 3,230 $ 798 $ 29,822 (Dollars in thousands) Real estate September 30, 2023 Commercial Municipal Commercial Residential Consumer Total Allowance for credit losses: Beginning Balance January 1, 2023 $ 4,365 $ 1,247 $ 17,915 $ 3,072 $ 873 $ 27,472 Impact of adopting ASU 2016-13 (1,683) 747 (3,344) 967 30 (3,283) Beginning Balance January 1, 2023 2,682 1,994 14,571 4,039 903 24,189 Charge-offs (4) (213) (217) Recoveries 9 1 22 109 141 Provisions (credits) (436) (1,127) 523 (163) 100 (1,103) Ending balance $ 2,251 $ 867 $ 15,095 $ 3,898 $ 899 $ 23,010 (Dollars in thousands) Real estate September 30, 2022 Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2022 $ 7,466 $ 987 $ 15,928 $ 3,209 $ 793 $ 28,383 Charge-offs (161) (147) (2) (244) (554) Recoveries 39 109 4 141 293 Provisions (credits) (824) 264 2,133 19 108 1,700 Ending balance $ 6,520 $ 1,251 $ 18,023 $ 3,230 $ 798 $ 29,822 The following table represents the allowance for credit losses by major classification of loan and whether the loans were individually or collectively evaluated and collateral dependent by class of loans at September 30, 2023 under (Dollars in thousands) Real estate September 30, 2023 Commercial Municipal Commercial Residential Consumer Total Allowance for credit losses: Ending balance $ 2,251 $ 867 $ 15,095 $ 3,898 $ 899 $ 23,010 Ending balance: individually evaluated 42 42 Ending balance: collectively evaluated $ 2,209 $ 867 $ 15,095 $ 3,898 $ 899 $ 22,968 Loans receivable: Ending balance $ 404,245 $ 176,935 $ 1,846,350 $ 357,647 $ 85,792 $ 2,870,969 Individually evaluated - collateral dependent - real estate 61 2,065 1,327 3,453 Individually evaluated - collateral dependent - non-real estate 42 42 Collectively evaluated 404,142 176,935 1,844,285 356,320 85,792 2,867,474 The following table represents the allowance for loan losses by major classification of loan and whether the loans were individually or collectively evaluated for impairment at December 31, 2022 prior to the adoption of ASU 2016-13. (Dollars in thousands) Real estate December 31, 2022 Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 4,365 $ 1,247 $ 17,915 $ 3,072 $ 873 $ 27,472 Ending balance: individually evaluated for impairment 19 21 40 Ending balance: collectively evaluated for impairment $ 4,346 $ 1,247 $ 17,915 $ 3,051 $ 873 $ 27,432 Loans receivable: Ending balance $ 433,048 $ 166,210 $ 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 432,950 166,210 1,707,764 328,968 90,303 2,726,195 Nonaccrual Loans The following table presents the Company’s nonaccrual loans at September 30, 2023 and December 31, 2022 . September 30, 2023 Total Nonaccrual with Nonaccrual with Nonaccrual an Allowance for no Allowance for (Dollars in thousands) Loans Credit Losses Credit Losses Commercial $ 42 $ 42 $ Municipal Real estate: Commercial 2,065 2,065 Residential 687 687 Consumer 266 266 Total $ 3,060 $ 42 $ 3,018 December 31, 2022 Total Nonaccrual (Dollars in thousands) Loans Commercial $ 86 Municipal Real estate: Commercial 1,155 Residential 562 Consumer 232 Total $ 2,035 Interest income recorded on nonaccrual loans for the three and nine months ended September 30, 2023 was $11 thousand and $426 thousand, respectively. The following table summarizes information concerning impaired loans, which include nonaccrual loans, troubled debt restructurings and loans past due 90 days or more and still accruing, as of and for the three and nine months ended September 30, 2022 by major loan classification: September 30, 2022 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 94 $ 425 $ $ 110 $ 3 $ 129 $ 7 Municipal Real estate: Commercial 2,389 3,193 2,431 9 2497 31 Residential 918 1,102 957 6 915 16 Consumer 245 256 258 215 Total 3,646 4,976 3,756 18 3,756 54 With an allowance recorded: Commercial 20 20 19 27 29 Municipal Real estate: Commercial 332 332 1 381 7 429 15 Residential 243 247 21 257 3 297 9 Consumer Total 595 599 41 665 10 755 24 Total impaired loans Commercial 114 445 19 137 3 158 7 Municipal Real estate: Commercial 2,721 3,525 1 2,812 16 2,926 46 Residential 1,161 1,349 21 1,214 9 1,212 25 Consumer 245 256 258 215 Total $ 4,241 $ 5,575 $ 41 $ 4,421 $ 28 $ 4,511 $ 78 The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: ● Pass- A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. ● Special Mention- A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. ● Substandard- A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. ● Doubtful – A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. ● Loss- A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The following table presents the amortized cost of loans and gross charge-offs by year of origination and by major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at September 30, 2023: (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial Pass $ 12,683 $ 40,553 $ 36,636 $ 28,862 $ 47,241 $ 89,914 $ 139,540 $ 395,429 Special Mention 41 41 Substandard 15 43 39 540 8,138 8,775 Total Commercial 12,698 40,553 36,679 28,862 47,280 90,454 147,719 404,245 Municipal Pass 1,191 48,439 96,517 11,387 22 19,292 87 176,935 Special Mention Substandard Total Municipal 1,191 48,439 96,517 11,387 22 19,292 87 176,935 Commercial real estate Pass 120,565 551,075 495,384 147,219 153,519 370,440 1,838,202 Special Mention 484 298 434 1,216 Substandard 170 1,636 162 618 4,346 6,932 Total Commercial real estate 120,735 551,559 497,020 147,381 154,435 375,220 1,846,350 Residential real estate Pass 21,151 54,932 67,074 28,033 17,125 87,298 81,347 356,960 Special Mention Substandard 4 329 349 5 687 Total Residential real estate 21,155 54,932 67,074 28,362 17,125 87,647 81,352 357,647 Consumer Pass 24,163 33,055 13,885 6,285 3,765 3,602 772 85,527 Special Mention Substandard 51 105 51 12 34 12 265 Total Consumer 24,163 33,106 13,990 6,336 3,777 3,636 784 85,792 Total Loans $ 179,942 $ 728,589 $ 711,280 $ 222,328 $ 222,639 $ 576,249 $ 229,942 $ 2,870,969 Gross charge-offs Commercial $ $ $ $ $ $ $ 4 $ 4 Municipal Commercial real estate Residential real estate Consumer 32 79 50 37 15 213 Total Gross charge-offs $ $ 32 $ 79 $ 50 $ 37 $ 15 $ 4 $ 217 The following table presents the amortized cost of loans by 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 as disclosed prior to ASU 2016-13: December 31, 2022 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Commercial $ 424,411 $ 7,822 $ 815 $ $ 433,048 Municipal 166,210 166,210 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 The major classifications of loans by past due status are summarized as follows: September 30, 2023 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 $ 57 $ 5 $ 103 $ 165 $ 404,080 $ 404,245 $ 60 Municipal 176,935 176,935 Real estate: Commercial 1,660 392 2,052 1,844,298 1,846,350 Residential 1,032 20 1,041 2,093 355,554 357,647 640 Consumer 795 376 174 1,345 84,447 85,792 Total $ 1,884 $ 2,061 $ 1,710 $ 5,655 $ 2,865,314 $ 2,870,969 $ 700 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 $ 432,787 $ 433,048 $ Municipal 166,210 166,210 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 Allowance for Credit Losses on Off Balance Sheet Commitments The following table presents the activity in the ACL on off balance sheet commitments, which include commitments to extend credit, unused portions of lines of credit and standby letters of credit, for the nine months ended September 30, 2023: (Dollars in thousands) September 30, 2023 Balance at December 31, 2022 $ 179 Impact of adopting Topic 326 270 Credit recorded in noninterest expense (368) Total allowance for credit losses on off balance sheet commitments $ 81 Modifications to Borrowers Experiencing Financial Difficulty The Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. There were no loans made to borrowers experiencing financial difficulty that were modified during the nine months ended September 30, 2023 and hence there were no loans made to borrowers experiencing financial difficulty that subsequently defaulted. Information on loan modifications prior to the adoption of ASU 2022-02 on January 1, 2023 is presented in accordance with the applicable accounting standards in effect at that time. During the three and nine months ended September 30, 2022, the Company did not modify any loans that were determined to be a troubled debt restructuring.

Other assets

Other assets	9 Months Ended
Other assets	Sep. 30, 2023
Other assets
Other assets	6. Other assets: The components of other assets at September 30, 2023 and December 31, 2022 are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Other real estate owned $ $ 121 Mortgage servicing rights 885 914 Prepaid shares tax 949 48 Prepaid pension 2,553 2,314 Prepaid expenses 4,626 3,012 Restricted equity securities (FHLB and other) 5,664 9,630 Investment in low income housing partnership 5,135 5,446 Interest rate swaps 26,153 21,794 Interest rate floor 772 1 Other assets 2,830 2,791 Total $ 49,567 $ 46,071 Restricted equity securities declined $4.0 million from December 31, 2022 due to lower Federal Home Loan Bank of Pittsburgh (FHLB) stock requirement resulting from a decrease in borrowings. Interest rate swaps balance represents the fair value of our commercial loan back-to-back swaps.

Fair value estimates

Fair value estimates	9 Months Ended
Fair value estimates	Sep. 30, 2023
Fair value estimates
Fair value of estimates	7. Fair value estimates: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements. In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument. Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include: ● Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ● Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. An asset’s or liability’s placement in the fair value hierarchy is based on the lowest level of input that is significant to the fair value estimate. During the periods ended September 30, 2023 and December 31, 2022 there were no transfers in or out of Level 3 . The following methods and assumptions were used by the Company to calculate fair values and related carrying amounts of financial instruments: Investment securities: Interest rate swaps and options: Assets and liabilities measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022 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 September 30, 2023 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 179,146 $ 179,146 $ $ U.S. government-sponsored enterprises 2,038 2,038 State and municipals: Taxable 53,987 53,987 Tax-exempt 61,798 61,798 Mortgage-backed securities: U.S. government agencies 749 749 U.S. government-sponsored enterprises 80,892 80,892 Corporate debt securities 3,617 3,617 Common equity securities 92 92 Total investment securities $ 382,319 $ 179,238 $ 203,081 $ Interest rate floor-other assets $ 772 $ 772 Interest rate swap-other assets $ 26,153 $ 26,153 Interest rate swap-other liabilities $ (25,366) $ (25,366) 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 $ 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) Assets and liabilities measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022 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 September 30, 2023 Amount (Level 1) (Level 2) (Level 3) Loans individually evaluated for credit loss $ 3,495 $ $ $ 3,495 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2022 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 220 $ $ $ 220 Fair values of impaired loans are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands, except percents) Fair Value Range September 30, 2023 Estimate Valuation Techniques Unobservable Input (Weighted Average) Loans individually evaluated for credit loss $ 3,495 Appraisal of collateral Appraisal adjustments 22.8% to 77.0% (60.7)% Liquidation expenses 3.0% to 6.0% (5.5)% 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)% Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The carrying and fair values of the Company’s financial instruments at September 30, 2023 and December 31, 2022 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 September 30, 2023 Value Value (Level 1) (Level 2) (Level 3) Financial assets: Cash and due from banks $ 254,535 $ 254,535 $ 254,535 $ $ Investment securities: Available-for-sale 382,227 382,227 179,146 203,081 Common equity securities 92 92 92 Held-to-maturity 86,246 68,808 68,808 Net loans 2,847,959 2,622,689 2,622,689 Accrued interest receivable 12,769 12,769 12,769 Mortgage servicing rights 885 1,706 1,706 Restricted equity securities (FHLB and other) 5,664 5,664 5,664 Interest rate floor 772 772 772 Interest rate swaps 26,153 26,153 26,153 Total $ 3,617,302 $ 3,375,415 Financial liabilities: Deposits $ 3,365,083 $ 3,358,194 $ $ 3,358,194 $ Short-term borrowings 27,020 27,020 27,020 Long-term debt 25,000 24,598 24,598 Subordinated debentures 33,000 31,858 31,858 Accrued interest payable 4,777 4,777 4,777 Interest rate swaps 25,366 25,366 25,366 Total $ 3,480,246 $ 3,471,814 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 477,703 477,703 180,297 294,706 Common equity securities 110 110 110 Held-to-maturity 91,179 76,563 76,563 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

Employee benefit plans

Employee benefit plans	9 Months Ended
Employee benefit plans	Sep. 30, 2023
Employee benefit plans
Employee benefit plans	8. Employee benefit plans: The Company provides an Employee Stock Ownership Plan (“ESOP”) and a Retirement Profit Sharing Plan. The Company also maintains Supplemental Executive Retirement Plans (“SERPs”) and an Employees’ Pension Plan, which is currently frozen. For the three and nine months ended September 30, salaries and employee benefits expense includes approximately $426 thousand and $1.3 million in 2023, respectively, and $373 thousand and $970 (Dollars in thousands) Pension Benefits Three Months Ended September 30, 2023 2022 Net periodic pension income: Interest cost $ 164 $ 114 Expected return on plan assets (293) (352) Amortization of unrecognized net loss 50 50 Net periodic pension income: $ (79) $ (188) (Dollars in thousands) Pension Benefits Nine Months Ended September 30, 2023 2022 Net periodic pension income: Interest cost $ 492 $ 342 Expected return on plan assets (878) (1,056) Amortization of unrecognized net loss 149 149 Net periodic pension income: $ (237) $ (565) In May 2017, the Company’s stockholders approved the 2017 equity incentive plan (“2017 Plan”). In May 2023, the Company’s stockholders approved the 2023 equity incentive plan (“2023 Plan”). Under the 2017 Plan and 2023 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 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 and 2023 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries. As of September 30, 2023, there were 17,364 shares of the Company’s common stock available for grants as awards pursuant to the 2017 Plan and there were 96,572 shares of the Company’s common stock available for grant as awards pursuant to the 2023 Plan. While the 2017 Plan will remain in effect in accordance with its terms to govern outstanding awards under that plan, the Company intends to make future grants under the 2023 Plan. If any outstanding awards are forfeited by the holder or canceled by the Company, the underlying shares would be available for regrant to others. The 2017 Plan and 2023 Plan authorize grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. For the nine months ended September 30, 2023, the Company granted 23,428 awards of restricted stock and restricted stock units under the 2023 Plan. For the nine months ended September 30, 2022, the Company granted The non-performance restricted stock grants made in 2023, 2022 and 2021 vest equally over three years . The performance-based restricted stock units vest over three fiscal years and include conditions based on the Company’s three year cumulative diluted earnings per share and three-year average return on equity or tangible equity that determines the number of restricted stock units that may vest. The Company expenses the fair value of all-share based compensation over the requisite service period commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. 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 (loss) income. The Company recognized net compensation costs of $157 thousand and $473 thousand for the three and nine months ended September 30, 2023 for awards granted under the 2017 Plan and recognized compensation expense of $102 thousand for the three and nine months ended September 30, 2023 for the awards granted under the 2023 Plan. The Company recognized compensation expense of $223 thousand and $613 thousand for the three and nine months ended September 30, 2022 for awards granted under the 2017 Plan. As of September 30, 2023, the Company had $1.4 million of unrecognized compensation expense associated with restricted stock awards. The remaining cost is expected to be recognized over a weighted average vesting period of under 1.8 years.

Derivatives and hedging activit

Derivatives and hedging activities	9 Months Ended
Derivatives and hedging activities	Sep. 30, 2023
Derivatives and hedging activities
Derivatives and hedging activities	9. Derivatives and hedging activities Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s existing credit derivatives result from participations of loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. 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. Such derivatives have been used to hedge the variable cash flows associated with existing variable-rate assets and issuances of debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive (loss) income and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive (loss) income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt/assets. During the next twelve months, the Company estimates that an additional $5 thousand will be reclassified as a reduction to interest income. Fair Value Hedges of Interest Rate Risk The Company For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. As of September 30, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges: Line Item in the Statement of Financial Position in Which the Hedged Item is Included Amortized Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (Dollars in thousands) 2023 2022 2023 2022 AFS Securities (1) $ 100,000 $ $ (779) $ Total $ 100,000 $ $ (779) $ (1) These amounts include the amortized cost basis of closed portfolios of fixed rate assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At September 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $144.2 million. The amounts of the designated hedged items were $115.8 million. 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 derivatives 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 derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. As of September 30, 2023, the Company had The Company’s existing credit derivatives result from participations in or out of interest rate swaps provided by or to external lenders as part of loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans. 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 Sheet as of September 30, 2023 and December 31, 2022. Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities As of September 30, 2023 As of December 31, 2022 (1) As of September 30, 2023 As of December 31, 2022 (Dollars in thousands) Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Products $ 100,000 Other Assets $ 813 Other Assets $ 1 $ Other Liabilities $ Other Liabilities $ Total derivatives designated as hedging instruments $ 813 $ 1 $ $ Derivatives not designated as hedging instruments Interest Rate Products $ 223,901 Other Assets $ 26,740 Other Assets $ 22,195 $ 223,901 Other Liabilities $ 25,953 Other Liabilities $ 21,466 Other Contracts 1,499 Other Assets Other Assets 7,460 Other Liabilities Other Liabilities Total derivatives not designated as hedging instruments $ 26,740 $ 22,195 $ 25,953 $ 21,466 (1) Notional amount of interest rate floor at December 31, 2022 was $25.0 million. Notional asset amount of interest rate swaps at December 31, 2022 was $187.3 million and $1.5 million for risk participation agreements. Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive (Loss) Income The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive (loss) income as of September 30, 2023 and September 30, 2022. (Dollars in thousands) Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component Three months ended September 30, 2023 2023 2023 Derivatives in Cash Flow Hedging Relationships Interest Rate Products Interest Income ($ 16) ($ 16) Total $ $ $ ($ 16) $ ($ 16) (Dollars in thousands) Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component Three months ended September 30, 2022 2022 2022 Derivatives in Cash Flow Hedging Relationships Interest Rate Products ($ 43) ($ 4) ($ 39) Interest Income $ 4 $ 20 ($ 16) Total ($ 43) ($ 4) ($ 39) $ 4 $ 20 ($ 16) (Dollars in thousands) Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component Nine months ended September 30, 2023 2023 2023 Derivatives in Cash Flow Hedging Relationships Interest Rate Products ($ 1) ($ 1) Interest Income ($ 48) ($ 48) Total ($ 1) $ ($ 1) ($ 48) $ ($ 48) (Dollars in thousands) Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component Nine months ended September 30, 2022 2022 2022 Derivatives in Cash Flow Hedging Relationships Interest Rate Products ($ 512) ($ 497) ($ 15) Interest Income $ 228 $ 276 ($ 48) Total ($ 512) ($ 497) ($ 15) $ 228 $ 276 ($ 48) * Amounts disclosed are gross and not net of taxes. Effect of Fair Value and Cash Flow Hedge Accounting on the Statements of Income and Comprehensive (Loss) Income The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of income and comprehensive (loss) income for the three and nine months ended September 30, 2023 and September 30, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the three months ended September 30, 2023 2022 (Dollars in thousands) Interest Income Interest Income Total amounts of income and expense line items presented in the statements of income and comprehensive (loss) income in which the effects of fair value or cash flow hedges are recorded. $ 188 $ 4 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships Interest contracts Hedged items (731) Derivatives designated as hedging instruments 935 Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (16) 4 Amount of gain or (loss) reclassified from accumulated OCI into income - Included Component 20 Amount of gain or (loss) reclassified from accumulated OCI into income - Excluded Component $ (16) $ (16) Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the nine months ended September 30, 2023 2022 (Dollars in thousands) Interest Income Interest Income Total amounts of income and expense line items presented in the statements of income and comprehensive (loss) income in which the effects of fair value or cash flow hedges are recorded. $ 318 $ 228 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships Interest contracts Hedged items (779) Derivatives designated as hedging instruments 1,145 Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (48) 228 Amount of gain or (loss) reclassified from accumulated OCI into income - Included Component 276 Amount of gain or (loss) reclassified from accumulated OCI into income - Excluded Component $ (48) $ (48) Effect of Derivative Instruments Not Designated as Hedging Instruments on the Statements of Income and Comprehensive (Loss) Income The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of income and comprehensive (loss) income for the three and nine months ended September 30, 2023 and 2022. Amount of Gain or (Loss) Amount of Gain or (Loss) Amount of Gain Amount of Loss Recognized in Recognized in Recognized in Recognized in Location of Gain or (Loss) Income on Derivative Income on Derivative Income Income Recognized in Income on Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Dollars in thousands) Derivative September 30, 2023 September 30, 2023 September 30, 2022 September 30, 2022 Derivatives Not Designated as Hedging Instruments: Interest Rate Products Other income / (expense) $ 194 $ 56 $ 129 $ 652 Other Contracts Other income / (expense) 1 31 1 4 Total $ 195 $ 87 $ 130 $ 656 Fee Income Fee income $ $ 457 $ 2 $ 106 Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2023 and December 31, 2022. 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 September 30, 2023 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 Posted Amount Derivatives $ 27,553 $ $ 27,553 $ $ 27,020 $ 533 Offsetting of Derivative Liabilities as of September 30, 2023 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 Posted* Amount Derivatives $ 25,953 $ $ 25,953 $ 25,953 $ $ *No cash collateral was paid in September 2023. 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 Posted 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 Posted Amount Derivatives $ 21,466 $ $ 21,466 $ 21,466 $ $ 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 September 30, 2023, 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 less than one thousand. 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 dealer counterparties at September 30, 2023. 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.

Deposits

Deposits	9 Months Ended
Deposits	Sep. 30, 2023
Deposits.
Deposits	10. Deposits The major components of interest-bearing and noninterest-bearing deposits at September 30, 2023 and December 31, 2022 are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Interest-bearing deposits: Money market accounts $ 767,868 $ 685,323 Now accounts 825,066 772,712 Savings accounts 447,684 523,931 Time deposits less than $250 512,646 199,136 Time deposits $250 or more 120,748 92,731 Total interest-bearing deposits 2,674,012 2,273,833 Noninterest-bearing deposits 691,071 772,765 Total deposits $ 3,365,083 $ 3,046,598 The deposit base consisted of 41.0% retail accounts, 32.8% commercial accounts, 18.1% municipal relationships and 8.1% brokered deposits at September 30, 2023. At September 30, 2023, total estimated uninsured deposits, were approximately of total deposits at December 31, 2022. Included in the uninsured total at September 30, 2023 is million of affiliate company deposits. As an additional resource to our uninsured depositors, we offer all depositors access to IntraFi's CDARS and ICS programs which allows deposit customers to obtain full FDIC deposit insurance while maintaining the deposit relationship with our Bank.

Borrowings

Borrowings	9 Months Ended
Borrowings	Sep. 30, 2023
Borrowings
Borrowings	11. Borrowings Short-term borrowings consist of FHLB advances representing overnight borrowings or with stated original terms of less than twelve months and other borrowings related to collateral held from derivative counterparties. Total short-term borrowings at September 30, 2023 were $27.0 million as compared to $114.9 million at December 31, 2022. Other borrowings, which include cash collateral pledged by derivative counterparties to offset interest rate exposure, represented the entire balance at September 30, 2023. The overall decrease to total short-term borrowings from December 31, 2022 is due to paying-off the overnight borrowings at the FHLB with proceeds from the sale of investment securities during the first three months of 2023 and deposit growth. The table below outlines short-term borrowings at and for the nine months ended September 30, 2023 and at and for the year ended December 31, 2022: At and for the nine months ended September 30, 2023 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 $ 27,020 $ 17,495 $ 27,020 5.03 % 5.33 % FHLB advances 25,630 158,000 4.86 Total short-term borrowings $ 27,020 $ 43,125 $ 185,020 4.93 % 5.33 % 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 Year Other borrowings $ 14,530 $ 10,033 $ 16,100 2.10 % 4.30 % 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 % 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 September 30, 2023, the maximum borrowing capacity was $1.2 billion of which $25.0 million was outstanding in borrowings and $380.9 million was used to issue standby letters of credit to collateralize public fund deposits. 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. The overnight borrowing rate resets each day. Long-term debt consisting of advances from the FHLB at September 30, 2023 and December 31, 2022 is as follows: Interest Rate (Dollars in thousands, except percents) Fixed September 30, 2023 December 31, 2022 March 2023 4.69 % $ $ 555 March 2025 4.37 10,000 March 2026 4.20 15,000 $ 25,000 $ 555 Maturities of long-term debt, by contractual maturity, for the remainder of 2023 and subsequent years are as follows: (Dollars in thousands) 2025 $ 10,000 2026 15,000 $ 25,000 The advances from the FHLB totaling $25.0 million are not convertible.

Subordinated debt

Subordinated debt	9 Months Ended
Subordinated debt	Sep. 30, 2023
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% 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% . 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 will be payable quarterly in arrears thereafter on March 1, June 1, September 1, and December 1. The 2020 Notes will mature on June 1, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after June 1, 2025 and prior to June 1, 2030. Additionally, if all or any portion of the 2020 Notes cease to be deemed Tier 2 Capital, the Company may redeem, in whole and not in part, at any time upon giving not less than ten days ’ notice, an amount equal to one hundred percent ( 100% ) of the principal amount outstanding plus accrued but unpaid interest to but excluding the date fixed for redemption. Holders of the 2020 Notes may not accelerate the maturity of the 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar proceeding by or against the Company or the Bank.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	9 Months Ended
Summary of significant accounting policies (Policies)	Sep. 30, 2023
Summary of significant accounting policies
Nature of operations	Nature of operations Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“the Bank”), collectively, the “Company” or “Peoples”. The Company services its retail and commercial customers through
Basis of presentation	Basis of presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the three and nine months ended and as of September 30, 2023, are not necessarily indicative of the results of consolidated operations and financial position that may be expected in the future. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for credit losses, fair value of financial instruments, the valuation of deferred tax assets, and impairment of goodwill. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, reference is made to the Company’s Annual Report on Form 10-K for the period ended December 31, 2022.
Pending Merger with FNCB Bancorp, Inc.	Pending Merger with FNCB Bancorp, Inc. On September 27, 2023, the Company entered into an Agreement and Plan of Merger (Merger Agreement) with FNCB Bancorp, Inc. (FNCB), a Pennsylvania Corporation and the parent company of FNCB Bank, pursuant to which FNCB will merge with and into the Company, with the Company as the surviving entity. Immediately after such merger, FNCB Bank will merge with and into the Bank, with the Bank as the surviving bank and a wholly-owned subsidiary of the Company. Under the terms of the Merger Agreement, which has been unanimously approved by the boards of directors of both companies, shareholders of FNCB will be entitled to receive a fixed exchange ratio of 0.1460 shares of the Company's common stock for each share of the FNCB’s common stock. On October 27, 2023, the Company and FNCB jointly filed a Federal Deposit Insurance Corporation ("FDIC") Interagency Bank Merger Application with the FDIC New York Regional Office and the Company filed a Pennsylvania Bank Merger Application with the Pennsylvania Department of Banking and Securities. Completion of the merger requires, among other things, the approval from these regulatory authorities, as well as the shareholders of the Company and FNCB. The Merger Agreement provides certain termination rights for both the Company and FNCB and further provides that a termination fee of $4.8 million will be payable by either the Company or FNCB, as applicable, upon termination of the Merger Agreement under certain circumstances. The foregoing summary is not complete and is qualified in all respects by reference to the actual language of the Merger Agreement filed by the Company as Exhibit 2.1 to this Quarterly Report on Form 10-Q. Pending regulatory and shareholder approvals, the Company expects the merger to be consummated in the first half of 2024, however, there can be no assurance that the transaction will be consummated by such date, or at all.
Immaterial Prior Period Adjustment	Immaterial Prior Period Adjustment During the quarter-ended June 30, 2023, the Company became aware that the unaudited consolidated financial statements for the three months ended March 31, 2023 contained an immaterial misstatement. The Company determined that the allowance for credit losses was overstated by $1.5 million as of March 31, 2023. The adjustment consisted of $1.1 million related to the adoption of Accounting Standards Update ( ASU) 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” that the Company adopted effective January 1, 2023 and a $0.4 million reduction in the first quarter 2023 provision for credit loss requirement. This immaterial misstatement was identified during the second quarter review of the Company’s loan segment loss rates and an adjustment was made to the municipal loan segment to better align its loss rates with the risk inherent in this loan product. The Company evaluated this prior period adjustment in accordance with SEC Staff Accounting Bulletin (SAB) 99, Materiality (ASC 250-10-S99) and based on its quantitative and qualitative analysis determined that this prior period adjustment was not material to the consolidated financial statements of any of the impacted unaudited 2023 periods. Therefore, an amendment to the previously filed quarterly report on Form 10-Q as of March 31, 2023 was not required . Consequently, the Company elected to correct this prior period adjustment in the three month period ended June 30, 2023. The cumulative impact $1.1 million credit to the provision for credit losses and reduction in the allowance for credit losses is reflected in the unaudited consolidated financial statements for the nine months ended September 30, 2023.
Fourth Quarter Dividend Declaration	Fourth Quarter Dividend Decl aration On October 27, 2023, the Board of Directors declared a fourth quarter dividend of $0.41 per share. The dividend is payable on December 15, 2023 to shareholders of record as of November 30, 2023.
Adoption of New Accounting Standard and Recent accounting standards	Adoption of New Accounting Standard On January 1, 2023, the Company adopted ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) model. The Company adopted ASU 2016-13 using a modified retrospective approach. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP. At adoption, the Company decreased its allowance for credit losses by $3.0 million. Upon adoption the Company recorded a cumulative effect adjustment that increased stockholders’ equity by $2.4 million, net of tax. The Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures” effective January 1, 2023. The ASU addresses and amends areas identified by the Financial Accounting Standards Board ("FASB") as part of its post-implementation review of the accounting standard that introduced the current expected credit losses model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit losses model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. Allowance for Credit Losses The allowance for credit losses represents the estimated amount considered necessary to cover lifetime expected credit losses inherent in financial assets at the balance sheet date. The measurement of expected credit losses is applicable to loans receivable and securities measured at amortized cost. It also applies to off-balance sheet credit exposures such as loan commitments and unused lines of credit. The allowance is established through a provision for credit losses that is charged against income. The methodology for determining the allowance for credit losses is considered a critical accounting policy by management because of the high degree of judgment involved, the subjectivity of the assumptions used, and the potential for changes in the forecasted economic environment that could result in changes to the amount of the recorded allowance for credit losses. The allowance for credit losses is reported separately as a contra-asset on the consolidated balance sheets. The expected credit loss for unfunded lending commitments and unfunded loan commitments is reported on the consolidated balance sheets in other liabilities while the provision for credit losses related to unfunded commitments is reported in other non-interest expense in the consolidated statements of income and comprehensive (loss) income. Allowance for Credit Losses on Loans Receivable The allowance for credit losses on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected losses are evaluated and calculated on a collective, or pooled, basis for those loans which share similar risk characteristics. The Company has chosen to segment its portfolio consistent with the manner in which it manages credit risk. Such segments include residential real estate, consumer, commercial and industrial, commercial real estate and municipal. At each reporting period, the Company evaluates whether loans within a pool continue to exhibit similar risk characteristics. If the risk characteristics of a loan change, such that they are no longer similar to other loans in the pool, the Company will evaluate the loan with a different pool of loans that share similar risk characteristics. If the loan does not share risk characteristics with other loans, the Company will evaluate the loan on an individual basis. The Company evaluates the pooling methodology at least annually. Loans are charged off against the allowance for credit losses when the Company believes the balances to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. The Company estimates the allowance for credit losses on loans using an advanced probability of default model which incorporates probability of default, loss given default, exposure at default and probability of attrition attributes. The model considers relevant available information at both the portfolio and loan level from internal data that is supplemented by shared data pool information. The model also incorporates reasonable and supportable economic forecasts. After the reasonable and supportable forecast period, the model reverts to average historical losses. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. Also included in the allowance for credit losses on loans are qualitative reserves to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis described above. Factors that the Company considers include changes in lending policies and procedures, changes in management, changes in the quality of the loan review process, the existence of any concentrations of credit and other external factors. Individually Evaluated Loans On a case-by-case basis, the Company may conclude that a loan should be evaluated on an individual basis based on its disparate risk characteristics. The Bank has determined that any loans currently on nonaccrual status or are 90 or more days past due and still accruing are considered impaired and should be individually evaluated for losses. When the Company determines that a loan no longer shares similar risk characteristics with other loans in the portfolio, the allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable. If the fair value of the collateral is less than the amortized cost basis of the loan, the Company will establish a reserve for the difference between the fair value of the collateral, less costs to sell and carrying costs at the reporting date and the amortized cost basis of the loan. If this amount is deemed uncollectible, the Company will charge-off that amount. Acquired Loans Acquired loans are included in the Company's calculation of the allowance for credit losses. How the allowance on an acquired loan is recorded depends on whether or not it has been classified as a Purchased Credit Deteriorated (“PCD”) loan. PCD loans are loans acquired at a discount that is due, in part, to credit quality. PCD loans are accounted for in accordance with ASC Subtopic 326-20 and are initially recorded at fair value as determined by the sum of the present value of expected future cash flows and an allowance for credit losses at acquisition. The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans. Thus, the determination of which loans are PCD and non-PCD can have a significant impact on the accounting for these loans. Subsequent to acquisition, the allowance for PCD loans will generally follow the same estimation, provision and charge-off process as non-PCD acquired and originated loans. Under FASB ASC Topic 326, a PCD asset is defined as an individual financial asset that as of the date of acquisition has experienced a more than insignificant deterioration in credit quality since origination as determined during the acquisition process. Upon identification of these assets, the amortized cost basis will be adjusted at the time of acquisition to reflect any impairment amount. After acquisition, PCD loans will be either collectively evaluated for reserve requirements or individually evaluated if on nonaccrual status or are 90 or more days past due and still accruing. Allowance for Credit Losses on Off-Balance Sheet Commitments The Company is required to include unfunded commitments that are expected to be funded in the future within the allowance calculation, other than those that are unconditionally cancelable. To arrive at that reserve, the reserve percentage for each applicable segment is applied to the unused portion of the expected commitment balance and is multiplied by the expected funding rate. To determine the expected funding rate, the Company uses a historical utilization rate for each segment. As noted above, the allowance for credit losses on unfunded loan commitments is included in other liabilities on the consolidated balance sheets and the related credit expense is recorded in other non-interest expense in the consolidated statements of income and comprehensive (loss) income. Allowance for Credit Losses on Held to Maturity Securities The Company’s portfolio of held to maturity securities consists of municipal bonds and U.S. agency residential mortgage-backed securities which are highly rated by major rating agencies and have a long history of no credit losses. In estimating the net amount expected to be collected for held to maturity securities in an unrealized loss position, a historical loss based method is utilized. Allowance for Credit Losses on Available for Sale Securities For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating by a rating agency, and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive (loss) income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses. Accrued Interest Receivable The Company made an accounting policy election to exclude accrued interest receivable from the amortized cost basis of loans, available for sale securities, and held to maturity securities. Accrued interest receivable on loans is reported as a component of accrued interest receivable on the Consolidated Balance Sheets, totaled $10.6 million at September 30, 2023 and is excluded from the estimate of credit losses. Accrued interest receivable on available for sale securities and held to maturity securities, also a component of accrued interest receivable on the Consolidated Balance Sheets, and totaled $1.6 million and $185 thousand, respectively, at September 30, 2023 and is excluded from the estimate of credit losses. Recent accounting standards From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the required effective dates. The following should be read in conjunction with "Note 1 Summary of significant accounting policies" of the Notes to the Consolidated Financial Statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2022. Unless otherwise discussed, management believes the impact of any recently issued standards, including those issued but not yet effective, will not have a material impact on the Company’s consolidated financial statements. ASU 2023-01, “Leases (Topic 842) - Common Control Arrangements” (ASU 2023-01) requires entities to determine whether a related party arrangement between entities under common control is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with an unrelated party (on the basis of legally enforceable terms and conditions). ASU 2023-01 is effective January 1, 2024 and is not expected to have an impact on our consolidated financial statements. ASU 2023-02 “Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (ASU 2023-02) permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective January 1, 2024 and is not expected to have an impact on our consolidated financial statements. ASU 2023-05 “Business Combinations - Joint Venture Formations (Subtopic 805-60) – Recognition and Initial Measurement” (ASU 2023-05) addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. ASU 2023-05 requires certain joint ventures to apply a new basis of accounting upon formation by recognizing and initially measuring most of their assets and liabilities at fair value. The objectives of the amendments are to provide decision-useful information to investors and other allocators of capital in a joint venture’s financial statements and also to reduce diversity in practice. ASU 2023-05 is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025 and is not expected to have an impact on our consolidated financial statements.

Other comprehensive loss (Table

Other comprehensive loss (Tables)	9 Months Ended
Other comprehensive loss (Tables)	Sep. 30, 2023
Other comprehensive loss
Schedule of components of accumulated other comprehensive loss	(Dollars in thousands) September 30, 2023 December 31, 2022 Net unrealized loss on investment securities available for sale $ (71,021) $ (66,250) Income tax benefit (15,294) (14,266) Net of income taxes (55,727) (51,984) Benefit plan adjustments (5,499) (5,499) Income tax benefit (1,184) (1,184) Net of income taxes (4,315) (4,315) Derivative adjustments 779 (47) Income tax expense (benefit) 167 (10) Net of income taxes 612 (37) Accumulated other comprehensive loss $ (59,430) $ (56,336)

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
Earnings per share (Tables)	Sep. 30, 2023
Earnings per share
Schedule of earnings per share	(Dollars in thousands, except per share data) 2023 2022 For the Three Months Ended September 30, Basic Diluted Basic Diluted Net income $ 6,746 $ 6,746 $ 9,968 $ 9,968 Average common shares outstanding 7,088,745 7,120,685 7,169,809 7,213,147 Earnings per share $ 0.95 $ 0.95 $ 1.39 $ 1.38 (Dollars in thousands, except per share data) 2023 2022 For the Nine Months Ended September 30, Basic Diluted Basic Diluted Net income $ 23,750 $ 23,750 $ 28,951 $ 28,951 Average common shares outstanding 7,130,506 7,165,570 7,171,382 7,214,966 Earnings per share $ 3.33 $ 3.31 $ 4.04 $ 4.01

Investment securities (Tables)

Investment securities (Tables)	9 Months Ended
Investment securities (Tables)	Sep. 30, 2023
Investment Securities
Schedule of amortized cost and fair value of investment securities aggregated by investment category	September 30, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 197,833 $ $ 18,687 $ 179,146 U.S. government-sponsored enterprises 2,542 504 2,038 State and municipals: Taxable 67,866 13,879 53,987 Tax-exempt 76,343 14,545 61,798 Residential mortgage-backed securities: U.S. government agencies 796 47 749 U.S. government-sponsored enterprises 91,814 22,398 69,416 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,054 578 11,476 Corporate debt securities 4,000 383 3,617 Total $ 453,248 $ $ 71,021 $ 382,227 Held to maturity: Tax-exempt state and municipals $ 11,210 $ $ 1,304 $ 9,906 Residential mortgage-backed securities: U.S. government agencies 15,752 3,344 12,408 U.S. government-sponsored enterprises 59,284 12,790 46,494 Total $ 86,246 $ $ 17,438 $ 68,808 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
Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position	September 30, 2023 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 $ $ 43 $ 179,146 $ 18,687 43 $ 179,146 $ 18,687 U.S. government-sponsored enterprises 2 2,038 504 2 2,038 504 State and municipals: Taxable 1 985 16 65 53,002 13,863 66 53,987 13,879 Tax-exempt 10 5,083 265 103 66,465 15,584 113 71,548 15,849 Residential mortgage-backed securities: U.S. government agencies 8 13,157 3,391 8 13,157 3,391 U.S. government-sponsored enterprises 41 115,911 35,188 41 115,911 35,188 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 4 11,476 578 4 11,476 578 Corporate debt securities 6 3,617 383 6 3,617 383 Total 11 $ 6,068 $ 281 272 $ 444,812 $ 88,178 283 $ 450,880 $ 88,459 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-sponsored enterprises 4 11,584 544 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
Available-for-Sale Securities
Investment Securities
Schedule of maturity distribution of fair value	Fair (Dollars in thousands) Value Within one year $ 9,592 After one but within five years 182,610 After five but within ten years 45,829 After ten years 60,516 298,547 Mortgage-backed and other amortizing securities 83,680 Total $ 382,227
Held-to-maturity Securities.
Investment Securities
Schedule of maturity distribution of fair value	Amortized Fair (Dollars in thousands) Cost Value After one but within five years $ 569 $ 510 After five but within ten years 9,451 8,420 After ten years 1,190 976 11,210 9,906 Mortgage-backed securities 75,036 58,902 Total $ 86,246 $ 68,808

Loans, net and allowance for _2

Loans, net and allowance for credit losses (Tables)	9 Months Ended
Loans, net and allowance for credit losses (Tables)	Sep. 30, 2023
Loans, net and allowance for credit losses
Schedule of major classifications of loans outstanding	(Dollars in thousands) September 30, 2023 December 31, 2022 Commercial and Industrial $ 404,245 $ 433,048 Municipal 176,935 166,210 Total 581,180 599,258 Real estate Commercial 1,846,350 1,709,827 Residential 357,647 330,728 Total 2,203,997 2,040,555 Consumer Indirect Auto 78,953 76,461 Consumer Other 6,839 13,842 Total 85,792 90,303 Total $ 2,870,969 $ 2,730,116
Schedule of changes in allowance for loan losses account by major classification of loans	(Dollars in thousands) Real estate September 30, 2023 Commercial Municipal Commercial Residential Consumer Total Allowance for credit losses: Beginning Balance July 1, 2023 $ 2,751 $ 827 $ 14,961 $ 3,767 $ 912 $ 23,218 Charge-offs (65) (65) Recoveries 4 3 16 23 Provisions (credits) (504) 40 134 128 36 (166) Ending balance $ 2,251 $ 867 $ 15,095 $ 3,898 $ 899 $ 23,010 (Dollars in thousands) Real estate September 30, 2022 Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance July 1, 2022 $ 6,522 $ 1,244 $ 17,569 $ 3,220 $ 819 $ 29,374 Charge-offs (15) (86) (101) Recoveries 10 32 1 56 99 Provisions (credits) (12) 7 437 9 9 450 Ending balance $ 6,520 $ 1,251 $ 18,023 $ 3,230 $ 798 $ 29,822 (Dollars in thousands) Real estate September 30, 2023 Commercial Municipal Commercial Residential Consumer Total Allowance for credit losses: Beginning Balance January 1, 2023 $ 4,365 $ 1,247 $ 17,915 $ 3,072 $ 873 $ 27,472 Impact of adopting ASU 2016-13 (1,683) 747 (3,344) 967 30 (3,283) Beginning Balance January 1, 2023 2,682 1,994 14,571 4,039 903 24,189 Charge-offs (4) (213) (217) Recoveries 9 1 22 109 141 Provisions (credits) (436) (1,127) 523 (163) 100 (1,103) Ending balance $ 2,251 $ 867 $ 15,095 $ 3,898 $ 899 $ 23,010 (Dollars in thousands) Real estate September 30, 2022 Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2022 $ 7,466 $ 987 $ 15,928 $ 3,209 $ 793 $ 28,383 Charge-offs (161) (147) (2) (244) (554) Recoveries 39 109 4 141 293 Provisions (credits) (824) 264 2,133 19 108 1,700 Ending balance $ 6,520 $ 1,251 $ 18,023 $ 3,230 $ 798 $ 29,822
Schedule of nonaccrual loans	September 30, 2023 Total Nonaccrual with Nonaccrual with Nonaccrual an Allowance for no Allowance for (Dollars in thousands) Loans Credit Losses Credit Losses Commercial $ 42 $ 42 $ Municipal Real estate: Commercial 2,065 2,065 Residential 687 687 Consumer 266 266 Total $ 3,060 $ 42 $ 3,018 December 31, 2022 Total Nonaccrual (Dollars in thousands) Loans Commercial $ 86 Municipal Real estate: Commercial 1,155 Residential 562 Consumer 232 Total $ 2,035
Summarized information concerning impaired loans	September 30, 2022 This Quarter Year-to-Date Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized Investment Recognized With no related allowance: Commercial $ 94 $ 425 $ $ 110 $ 3 $ 129 $ 7 Municipal Real estate: Commercial 2,389 3,193 2,431 9 2497 31 Residential 918 1,102 957 6 915 16 Consumer 245 256 258 215 Total 3,646 4,976 3,756 18 3,756 54 With an allowance recorded: Commercial 20 20 19 27 29 Municipal Real estate: Commercial 332 332 1 381 7 429 15 Residential 243 247 21 257 3 297 9 Consumer Total 595 599 41 665 10 755 24 Total impaired loans Commercial 114 445 19 137 3 158 7 Municipal Real estate: Commercial 2,721 3,525 1 2,812 16 2,926 46 Residential 1,161 1,349 21 1,214 9 1,212 25 Consumer 245 256 258 215 Total $ 4,241 $ 5,575 $ 41 $ 4,421 $ 28 $ 4,511 $ 78
Schedule of major classification of loans portfolio summarized by credit quality	(Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial Pass $ 12,683 $ 40,553 $ 36,636 $ 28,862 $ 47,241 $ 89,914 $ 139,540 $ 395,429 Special Mention 41 41 Substandard 15 43 39 540 8,138 8,775 Total Commercial 12,698 40,553 36,679 28,862 47,280 90,454 147,719 404,245 Municipal Pass 1,191 48,439 96,517 11,387 22 19,292 87 176,935 Special Mention Substandard Total Municipal 1,191 48,439 96,517 11,387 22 19,292 87 176,935 Commercial real estate Pass 120,565 551,075 495,384 147,219 153,519 370,440 1,838,202 Special Mention 484 298 434 1,216 Substandard 170 1,636 162 618 4,346 6,932 Total Commercial real estate 120,735 551,559 497,020 147,381 154,435 375,220 1,846,350 Residential real estate Pass 21,151 54,932 67,074 28,033 17,125 87,298 81,347 356,960 Special Mention Substandard 4 329 349 5 687 Total Residential real estate 21,155 54,932 67,074 28,362 17,125 87,647 81,352 357,647 Consumer Pass 24,163 33,055 13,885 6,285 3,765 3,602 772 85,527 Special Mention Substandard 51 105 51 12 34 12 265 Total Consumer 24,163 33,106 13,990 6,336 3,777 3,636 784 85,792 Total Loans $ 179,942 $ 728,589 $ 711,280 $ 222,328 $ 222,639 $ 576,249 $ 229,942 $ 2,870,969 Gross charge-offs Commercial $ $ $ $ $ $ $ 4 $ 4 Municipal Commercial real estate Residential real estate Consumer 32 79 50 37 15 213 Total Gross charge-offs $ $ 32 $ 79 $ 50 $ 37 $ 15 $ 4 $ 217 December 31, 2022 Special (Dollars in thousands) Pass Mention Substandard Doubtful Total Commercial $ 424,411 $ 7,822 $ 815 $ $ 433,048 Municipal 166,210 166,210 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
Schedule of information concerning nonaccrual loans by major loan classification	(Dollars in thousands) Real estate September 30, 2023 Commercial Municipal Commercial Residential Consumer Total Allowance for credit losses: Ending balance $ 2,251 $ 867 $ 15,095 $ 3,898 $ 899 $ 23,010 Ending balance: individually evaluated 42 42 Ending balance: collectively evaluated $ 2,209 $ 867 $ 15,095 $ 3,898 $ 899 $ 22,968 Loans receivable: Ending balance $ 404,245 $ 176,935 $ 1,846,350 $ 357,647 $ 85,792 $ 2,870,969 Individually evaluated - collateral dependent - real estate 61 2,065 1,327 3,453 Individually evaluated - collateral dependent - non-real estate 42 42 Collectively evaluated 404,142 176,935 1,844,285 356,320 85,792 2,867,474 (Dollars in thousands) Real estate December 31, 2022 Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 4,365 $ 1,247 $ 17,915 $ 3,072 $ 873 $ 27,472 Ending balance: individually evaluated for impairment 19 21 40 Ending balance: collectively evaluated for impairment $ 4,346 $ 1,247 $ 17,915 $ 3,051 $ 873 $ 27,432 Loans receivable: Ending balance $ 433,048 $ 166,210 $ 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 432,950 166,210 1,707,764 328,968 90,303 2,726,195
Schedule of major classifications of loans by past due status	September 30, 2023 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 $ 57 $ 5 $ 103 $ 165 $ 404,080 $ 404,245 $ 60 Municipal 176,935 176,935 Real estate: Commercial 1,660 392 2,052 1,844,298 1,846,350 Residential 1,032 20 1,041 2,093 355,554 357,647 640 Consumer 795 376 174 1,345 84,447 85,792 Total $ 1,884 $ 2,061 $ 1,710 $ 5,655 $ 2,865,314 $ 2,870,969 $ 700 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 $ 432,787 $ 433,048 $ Municipal 166,210 166,210 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
Schedule of allowance for credit losses on off balance sheet commitments	(Dollars in thousands) September 30, 2023 Balance at December 31, 2022 $ 179 Impact of adopting Topic 326 270 Credit recorded in noninterest expense (368) Total allowance for credit losses on off balance sheet commitments $ 81

Other assets (Tables)

Other assets (Tables)	9 Months Ended
Other assets (Tables)	Sep. 30, 2023
Other assets
Schedule of components of other assets	(Dollars in thousands) September 30, 2023 December 31, 2022 Other real estate owned $ $ 121 Mortgage servicing rights 885 914 Prepaid shares tax 949 48 Prepaid pension 2,553 2,314 Prepaid expenses 4,626 3,012 Restricted equity securities (FHLB and other) 5,664 9,630 Investment in low income housing partnership 5,135 5,446 Interest rate swaps 26,153 21,794 Interest rate floor 772 1 Other assets 2,830 2,791 Total $ 49,567 $ 46,071

Fair value estimates (Tables)

Fair value estimates (Tables)	9 Months Ended
Fair value estimates (Tables)	Sep. 30, 2023
Fair value estimates
Schedule of assets and liabilities measured at fair value on a recurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs September 30, 2023 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 179,146 $ 179,146 $ $ U.S. government-sponsored enterprises 2,038 2,038 State and municipals: Taxable 53,987 53,987 Tax-exempt 61,798 61,798 Mortgage-backed securities: U.S. government agencies 749 749 U.S. government-sponsored enterprises 80,892 80,892 Corporate debt securities 3,617 3,617 Common equity securities 92 92 Total investment securities $ 382,319 $ 179,238 $ 203,081 $ Interest rate floor-other assets $ 772 $ 772 Interest rate swap-other assets $ 26,153 $ 26,153 Interest rate swap-other liabilities $ (25,366) $ (25,366) 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 $ 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)
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 September 30, 2023 Amount (Level 1) (Level 2) (Level 3) Loans individually evaluated for credit loss $ 3,495 $ $ $ 3,495 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2022 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 220 $ $ $ 220
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 September 30, 2023 Estimate Valuation Techniques Unobservable Input (Weighted Average) Loans individually evaluated for credit loss $ 3,495 Appraisal of collateral Appraisal adjustments 22.8% to 77.0% (60.7)% Liquidation expenses 3.0% to 6.0% (5.5)% 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)%
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 September 30, 2023 Value Value (Level 1) (Level 2) (Level 3) Financial assets: Cash and due from banks $ 254,535 $ 254,535 $ 254,535 $ $ Investment securities: Available-for-sale 382,227 382,227 179,146 203,081 Common equity securities 92 92 92 Held-to-maturity 86,246 68,808 68,808 Net loans 2,847,959 2,622,689 2,622,689 Accrued interest receivable 12,769 12,769 12,769 Mortgage servicing rights 885 1,706 1,706 Restricted equity securities (FHLB and other) 5,664 5,664 5,664 Interest rate floor 772 772 772 Interest rate swaps 26,153 26,153 26,153 Total $ 3,617,302 $ 3,375,415 Financial liabilities: Deposits $ 3,365,083 $ 3,358,194 $ $ 3,358,194 $ Short-term borrowings 27,020 27,020 27,020 Long-term debt 25,000 24,598 24,598 Subordinated debentures 33,000 31,858 31,858 Accrued interest payable 4,777 4,777 4,777 Interest rate swaps 25,366 25,366 25,366 Total $ 3,480,246 $ 3,471,814 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 477,703 477,703 180,297 294,706 Common equity securities 110 110 110 Held-to-maturity 91,179 76,563 76,563 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

Employee benefit plans (Tables)

Employee benefit plans (Tables)	9 Months Ended
Employee benefit plans (Tables)	Sep. 30, 2023
Employee benefit plans
Schedule of components of net periodic benefit cost	(Dollars in thousands) Pension Benefits Three Months Ended September 30, 2023 2022 Net periodic pension income: Interest cost $ 164 $ 114 Expected return on plan assets (293) (352) Amortization of unrecognized net loss 50 50 Net periodic pension income: $ (79) $ (188) (Dollars in thousands) Pension Benefits Nine Months Ended September 30, 2023 2022 Net periodic pension income: Interest cost $ 492 $ 342 Expected return on plan assets (878) (1,056) Amortization of unrecognized net loss 149 149 Net periodic pension income: $ (237) $ (565)

Derivatives and hedging activ_2

Derivatives and hedging activities (Tables)	9 Months Ended
Derivatives and hedging activities (Tables)	Sep. 30, 2023
Derivatives and hedging activities
Schedule of amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges	Line Item in the Statement of Financial Position in Which the Hedged Item is Included Amortized Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) (Dollars in thousands) 2023 2022 2023 2022 AFS Securities (1) $ 100,000 $ $ (779) $ Total $ 100,000 $ $ (779) $ (1) These amounts include the amortized cost basis of closed portfolios of fixed rate assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At September 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $144.2 million. The amounts of the designated hedged items were $115.8 million.
Schedule of fair value of derivative financial instruments and balance sheet classification	Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities As of September 30, 2023 As of December 31, 2022 (1) As of September 30, 2023 As of December 31, 2022 (Dollars in thousands) Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest Rate Products $ 100,000 Other Assets $ 813 Other Assets $ 1 $ Other Liabilities $ Other Liabilities $ Total derivatives designated as hedging instruments $ 813 $ 1 $ $ Derivatives not designated as hedging instruments Interest Rate Products $ 223,901 Other Assets $ 26,740 Other Assets $ 22,195 $ 223,901 Other Liabilities $ 25,953 Other Liabilities $ 21,466 Other Contracts 1,499 Other Assets Other Assets 7,460 Other Liabilities Other Liabilities Total derivatives not designated as hedging instruments $ 26,740 $ 22,195 $ 25,953 $ 21,466 (1) Notional amount of interest rate floor at December 31, 2022 was $25.0 million. Notional asset amount of interest rate swaps at December 31, 2022 was $187.3 million and $1.5 million for risk participation agreements.
Schedule of effect of fair value and cash flow hedge accounting on accumulated other comprehensive income	(Dollars in thousands) Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component Three months ended September 30, 2023 2023 2023 Derivatives in Cash Flow Hedging Relationships Interest Rate Products Interest Income ($ 16) ($ 16) Total $ $ $ ($ 16) $ ($ 16) (Dollars in thousands) Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component Three months ended September 30, 2022 2022 2022 Derivatives in Cash Flow Hedging Relationships Interest Rate Products ($ 43) ($ 4) ($ 39) Interest Income $ 4 $ 20 ($ 16) Total ($ 43) ($ 4) ($ 39) $ 4 $ 20 ($ 16) (Dollars in thousands) Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component Nine months ended September 30, 2023 2023 2023 Derivatives in Cash Flow Hedging Relationships Interest Rate Products ($ 1) ($ 1) Interest Income ($ 48) ($ 48) Total ($ 1) $ ($ 1) ($ 48) $ ($ 48) (Dollars in thousands) Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component Nine months ended September 30, 2022 2022 2022 Derivatives in Cash Flow Hedging Relationships Interest Rate Products ($ 512) ($ 497) ($ 15) Interest Income $ 228 $ 276 ($ 48) Total ($ 512) ($ 497) ($ 15) $ 228 $ 276 ($ 48) * 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 three months ended September 30, 2023 2022 (Dollars in thousands) Interest Income Interest Income Total amounts of income and expense line items presented in the statements of income and comprehensive (loss) income in which the effects of fair value or cash flow hedges are recorded. $ 188 $ 4 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships Interest contracts Hedged items (731) Derivatives designated as hedging instruments 935 Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (16) 4 Amount of gain or (loss) reclassified from accumulated OCI into income - Included Component 20 Amount of gain or (loss) reclassified from accumulated OCI into income - Excluded Component $ (16) $ (16) Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the nine months ended September 30, 2023 2022 (Dollars in thousands) Interest Income Interest Income Total amounts of income and expense line items presented in the statements of income and comprehensive (loss) income in which the effects of fair value or cash flow hedges are recorded. $ 318 $ 228 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships Interest contracts Hedged items (779) Derivatives designated as hedging instruments 1,145 Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (48) 228 Amount of gain or (loss) reclassified from accumulated OCI into income - Included Component 276 Amount of gain or (loss) reclassified from accumulated OCI into income - Excluded Component $ (48) $ (48)
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Gain or (Loss) Amount of Gain or (Loss) Amount of Gain Amount of Loss Recognized in Recognized in Recognized in Recognized in Location of Gain or (Loss) Income on Derivative Income on Derivative Income Income Recognized in Income on Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended (Dollars in thousands) Derivative September 30, 2023 September 30, 2023 September 30, 2022 September 30, 2022 Derivatives Not Designated as Hedging Instruments: Interest Rate Products Other income / (expense) $ 194 $ 56 $ 129 $ 652 Other Contracts Other income / (expense) 1 31 1 4 Total $ 195 $ 87 $ 130 $ 656 Fee Income Fee income $ $ 457 $ 2 $ 106
Schedule of offsetting derivatives	Offsetting of Derivative Assets as of September 30, 2023 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 Posted Amount Derivatives $ 27,553 $ $ 27,553 $ $ 27,020 $ 533 Offsetting of Derivative Liabilities as of September 30, 2023 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 Posted* Amount Derivatives $ 25,953 $ $ 25,953 $ 25,953 $ $ *No cash collateral was paid in September 2023. 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 Posted 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 Posted Amount Derivatives $ 21,466 $ $ 21,466 $ 21,466 $ $

Deposits (Tables)

Deposits (Tables)	9 Months Ended
Deposits (Tables)	Sep. 30, 2023
Deposits.
Summary of major components of interest-bearing and noninterest-bearing deposits	(Dollars in thousands) September 30, 2023 December 31, 2022 Interest-bearing deposits: Money market accounts $ 767,868 $ 685,323 Now accounts 825,066 772,712 Savings accounts 447,684 523,931 Time deposits less than $250 512,646 199,136 Time deposits $250 or more 120,748 92,731 Total interest-bearing deposits 2,674,012 2,273,833 Noninterest-bearing deposits 691,071 772,765 Total deposits $ 3,365,083 $ 3,046,598

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
Borrowings (Tables)	Sep. 30, 2023
Borrowings
Summary of short-term borrowings	At and for the nine months ended September 30, 2023 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 $ 27,020 $ 17,495 $ 27,020 5.03 % 5.33 % FHLB advances 25,630 158,000 4.86 Total short-term borrowings $ 27,020 $ 43,125 $ 185,020 4.93 % 5.33 % 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 Year Other borrowings $ 14,530 $ 10,033 $ 16,100 2.10 % 4.30 % 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 %
Schedule of long-term debt consisting of advances	Interest Rate (Dollars in thousands, except percents) Fixed September 30, 2023 December 31, 2022 March 2023 4.69 % $ $ 555 March 2025 4.37 10,000 March 2026 4.20 15,000 $ 25,000 $ 555
Schedule of maturities of long-term debt	(Dollars in thousands) 2025 $ 10,000 2026 15,000 $ 25,000

Summary of significant accoun_3

Summary of significant accounting policies - Nature of operations and Basis of presentation (Details)		3 Months Ended						9 Months Ended
	Oct. 27, 2023 $ / shares	Sep. 30, 2023 $ / shares	Jun. 30, 2023 $ / shares	Mar. 31, 2023 $ / shares	Sep. 30, 2022 $ / shares	Jun. 30, 2022 $ / shares	Mar. 31, 2022 $ / shares	Sep. 30, 2023 Office $ / shares	Sep. 30, 2022 $ / shares
Summary of significant accounting policies
Number of full-service community banking offices \| Office								28
Dividends declared \| $ / shares	$ 0.41	$ 0.41	$ 0.41	$ 0.41	$ 0.40	$ 0.39	$ 0.39	$ 1.23	$ 1.18

Summary of significant accoun_4

Summary of significant accounting policies - Pending Merger (Details) - Pending Merger with FNCB Bancorp, Inc. $ in Millions	Sep. 27, 2023 USD ($)
Business Acquisition
Fixed exchange ratio	0.1460
Fee required if the merger is terminated	$ 4.8

Summary of significant accoun_5

Summary of significant accounting policies - Prior Period Adjustments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Error Corrections and Prior Period Adjustments Restatement
Allowance for credit losses	$ 23,010	$ 23,218		$ 27,472	$ 29,822	$ 29,374	$ 28,383
Overstatement of allowance for credit losses
Error Corrections and Prior Period Adjustments Restatement
Allowance for credit losses	$ 1,100		$ 1,500
Overstatement of allowance for credit losses \| Adoption of ASU 2016-13
Error Corrections and Prior Period Adjustments Restatement
Allowance for credit losses		$ 1,100
Overstatement of allowance for credit losses \| Reduction in the first quarter provision requirement
Error Corrections and Prior Period Adjustments Restatement
Allowance for credit losses			$ 400

Summary of significant accoun_6

Summary of significant accounting policies - Adoption of new accounting standard (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle
Allowance for credit losses	$ 23,010	$ 23,218			$ 27,472	$ 29,822	$ 29,374		$ 28,383
Stockholders' equity	324,390	$ 331,787	$ 328,634		315,350	$ 301,810	$ 311,897	$ 320,461	$ 340,126
Accrued interest receivable on loans	10,600
Accrued interest receivable on available of sale securities	1,600
Accrued interest receivable on held to maturity securities	$ 185
Cumulative impact of adoption \| ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle
Allowance for credit losses				$ 3,000	(3,283)
Stockholders' equity				$ 2,400	$ 2,364

Other comprehensive loss - Comp

Other comprehensive loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Other comprehensive loss
Net unrealized loss on investment securities available for sale	$ (71,021)	$ (66,250)
Income tax benefit	(15,294)	(14,266)
Net of income taxes	(55,727)	(51,984)
Benefit plan adjustments	(5,499)	(5,499)
Income tax benefit	1,184	1,184
Net of income taxes	(4,315)	(4,315)
Derivative adjustments	779	(47)
Income tax expense (benefit)	167	(10)
Net of income taxes	612	(37)
Accumulated other comprehensive loss	$ (59,430)	$ (56,336)

Earnings per share - Schedule o

Earnings per share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings per share
Net income, Basic	$ 6,746	$ 9,968	$ 23,750	$ 28,951
Average common shares outstanding - Basic	7,088,745	7,169,809	7,130,506	7,171,382
Earnings per share - Basic	$ 0.95	$ 1.39	$ 3.33	$ 4.04
Net income, Diluted	$ 6,746	$ 9,968	$ 23,750	$ 28,951
Average common shares outstanding - Diluted	7,120,685	7,213,147	7,165,570	7,214,966
Earnings per share - Diluted	$ 0.95	$ 1.38	$ 3.31	$ 4.01

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investment Securities
Available-for-sale, Amortized Cost	$ 453,248	$ 543,953
Available-for-sale, Gross Unrealized Gains		93
Available-for-sale, Gross Unrealized Losses	71,021	66,343
Available-for-sale, Fair Value	382,227	477,703
Held-to-maturity, Amortized Cost	86,246	91,179
Held-to-maturity, Gross Unrealized Gains		1
Held-to-maturity, Gross Unrealized Losses	17,438	14,617
Held-to-maturity, Fair value	68,808	76,563
U.S. Treasury securities
Investment Securities
Available-for-sale, Amortized Cost	197,833	199,937
Available-for-sale, Gross Unrealized Losses	18,687	19,640
Available-for-sale, Fair Value	179,146	180,297
U.S. Government-sponsored enterprises state and municipals
Investment Securities
Available-for-sale, Amortized Cost	2,542	16,955
Available-for-sale, Gross Unrealized Losses	504	585
Available-for-sale, Fair Value	2,038	16,370
State and municipals, Taxable
Investment Securities
Available-for-sale, Amortized Cost	67,866	68,946
Available-for-sale, Gross Unrealized Losses	13,879	13,588
Available-for-sale, Fair Value	53,987	55,358
State and municipals, Tax-exempt
Investment Securities
Available-for-sale, Amortized Cost	76,343	99,774
Available-for-sale, Gross Unrealized Gains		93
Available-for-sale, Gross Unrealized Losses	14,545	11,460
Available-for-sale, Fair Value	61,798	88,407
Tax-exempt state and municipals
Investment Securities
Held-to-maturity, Amortized Cost	11,210	11,237
Held-to-maturity, Gross Unrealized Gains		1
Held-to-maturity, Gross Unrealized Losses	1,304	841
Held-to-maturity, Fair value	9,906	10,397
Residential mortgage-backed securities, U.S. government agencies
Investment Securities
Available-for-sale, Amortized Cost	796	982
Available-for-sale, Gross Unrealized Losses	47	40
Available-for-sale, Fair Value	749	942
Held-to-maturity, Amortized Cost	15,752	17,304
Held-to-maturity, Gross Unrealized Losses	3,344	3,016
Held-to-maturity, Fair value	12,408	14,288
Residential mortgage-backed securities, U.S. government-sponsored enterprises
Investment Securities
Available-for-sale, Amortized Cost	91,814	141,231
Available-for-sale, Gross Unrealized Losses	22,398	20,112
Available-for-sale, Fair Value	69,416	121,119
Held-to-maturity, Amortized Cost	59,284	62,638
Held-to-maturity, Gross Unrealized Losses	12,790	10,760
Held-to-maturity, Fair value	46,494	51,878
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Investment Securities
Available-for-sale, Amortized Cost	12,054	12,128
Available-for-sale, Gross Unrealized Losses	578	544
Available-for-sale, Fair Value	11,476	11,584
Corporate debt securities
Investment Securities
Available-for-sale, Amortized Cost	4,000	4,000
Available-for-sale, Gross Unrealized Losses	383	374
Available-for-sale, Fair Value	$ 3,617	$ 3,626

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investment securities
Within one year	$ 9,592
After one but within five years	182,610
After five but within ten years	45,829
After ten years	60,516
Available for sale securities	298,547
Mortgage-backed and other amortizing securities	83,680
Total	$ 382,227	$ 477,703

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized Cost of Held-to-maturity Securities
Amortized Cost, After one but within five years, Held to maturity	$ 569
Amortized Cost, After five but within ten years, Held to maturity	9,451
Amortized Cost, After ten years, Held to maturity	1,190
Amortized Cost, Held to maturity	11,210
Amortized Cost, Mortgage-backed securities, Held to maturity	75,036
Held-to-maturity, Amortized Cost	86,246	$ 91,179
Fair Value of Held-to-maturity Securities
Fair Value, After one but within five years, Held to maturity	510
Fair Value, After five but within ten years, Held to maturity	8,420
Fair Value, After ten years, Held to maturity	976
Fair Value, Held to maturity	9,906
Fair Value, Mortgage-backed securities, Held to maturity	58,902
Held to maturity, Fair Value	$ 68,808	$ 76,563

Investment securities - Pledged

Investment securities - Pledged Securities (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged	Assets pledged as collateral	Assets pledged as collateral
Collateral Pledged
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged	$ 137.9	$ 168
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	Sep. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Available-for-sale and Held-to-maturity securities
Less Than 12 Months, Number of Securities in a Loss Position	11	98
Less Than 12 Months, Fair Value	$ 6,068	$ 159,303
Less Than 12 Months, Unrealized Losses	$ 281	$ 9,341
12 Months or Greater, Number of Securities in a Loss Position	272	204
12 Months or Greater, Fair Value	$ 444,812	$ 385,821
12 Months or Greater, Unrealized Losses	$ 88,178	$ 71,619
Total, Number of Securities in a Loss Position	283	302
Total, Fair Value	$ 450,880	$ 545,124
Total, Unrealized Losses	$ 88,459	$ 80,960
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
Less Than 12 Months, Fair Value		$ 23,700
Less Than 12 Months, Unrealized Losses		$ 1,887
12 Months or Greater, Number of Securities in a Loss Position \| security	43	40
12 Months or Greater, Fair Value	$ 179,146	$ 156,597
12 Months or Greater, Unrealized Losses	$ 18,687	$ 17,753
Total, Number of Securities in a Loss Position \| security	43	45
Total, Fair Value	$ 179,146	$ 180,297
Total, Unrealized Losses	$ 18,687	$ 19,640
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	2	1
12 Months or Greater, Fair Value	$ 2,038	$ 2,266
12 Months or Greater, Unrealized Losses	$ 504	$ 388
Total, Number of Securities in a Loss Position \| security	2	5
Total, Fair Value	$ 2,038	$ 16,370
Total, Unrealized Losses	$ 504	$ 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	1	21
Less Than 12 Months, Fair Value	$ 985	$ 19,919
Less Than 12 Months, Unrealized Losses	$ 16	$ 2,908
12 Months or Greater, Number of Securities in a Loss Position \| security	65	45
12 Months or Greater, Fair Value	$ 53,002	$ 34,464
12 Months or Greater, Unrealized Losses	$ 13,863	$ 10,680
Total, Number of Securities in a Loss Position \| security	66	66
Total, Fair Value	$ 53,987	$ 54,383
Total, Unrealized Losses	$ 13,879	$ 13,588
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	10	39
Less Than 12 Months, Fair Value	$ 5,083	$ 30,973
Less Than 12 Months, Unrealized Losses	$ 265	$ 1,690
12 Months or Greater, Number of Securities in a Loss Position \| security	103	84
12 Months or Greater, Fair Value	$ 66,465	$ 59,664
12 Months or Greater, Unrealized Losses	$ 15,584	$ 10,611
Total, Number of Securities in a Loss Position \| security	113	123
Total, Fair Value	$ 71,548	$ 90,637
Total, Unrealized Losses	$ 15,849	$ 12,301
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
Less Than 12 Months, Fair Value		$ 904
Less Than 12 Months, Unrealized Losses		$ 39
12 Months or Greater, Number of Securities in a Loss Position \| security	8	4
12 Months or Greater, Fair Value	$ 13,157	$ 14,326
12 Months or Greater, Unrealized Losses	$ 3,391	$ 3,017
Total, Number of Securities in a Loss Position \| security	8	9
Total, Fair Value	$ 13,157	$ 15,230
Total, Unrealized Losses	$ 3,391	$ 3,056
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
Less Than 12 Months, Fair Value		$ 57,166
Less Than 12 Months, Unrealized Losses		$ 2,029
12 Months or Greater, Number of Securities in a Loss Position \| security	41	25
12 Months or Greater, Fair Value	$ 115,911	$ 115,831
12 Months or Greater, Unrealized Losses	$ 35,188	$ 28,843
Total, Number of Securities in a Loss Position \| security	41	44
Total, Fair Value	$ 115,911	$ 172,997
Total, Unrealized Losses	$ 35,188	$ 30,872
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	4
12 Months or Greater, Fair Value	$ 11,476
12 Months or Greater, Unrealized Losses	$ 578
Total, Number of Securities in a Loss Position \| security	4	4
Total, Fair Value	$ 11,476	$ 11,584
Total, Unrealized Losses	$ 578	$ 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
Less Than 12 Months, Fair Value		$ 953
Less Than 12 Months, Unrealized Losses		$ 47
12 Months or Greater, Number of Securities in a Loss Position \| security	6	5
12 Months or Greater, Fair Value	$ 3,617	$ 2,673
12 Months or Greater, Unrealized Losses	$ 383	$ 327
Total, Number of Securities in a Loss Position \| security	6	6
Total, Fair Value	$ 3,617	$ 3,626
Total, Unrealized Losses	$ 383	$ 374

Investment securities (Details)

Investment securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
Investment securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Jan. 01, 2023
Summary of significant accounting policies
Net unrealized losses on available-for-sale securities	$ 55,700	$ 52,000
Deferred income taxes on available-for-sale securities	15,300	$ 14,300
Proceeds from sale of available-for-sale investment securities	65,600
Net gain on available-for-sale securities	81
Allowance for credit loss on available-for-sale debt securities	0		$ 0
Allowance for credit loss on held-to-maturity	$ 0		$ 0

Loans, net and allowance for _3

Loans, net and allowance for credit losses - Net Deferred Loan Costs (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Loans, net and allowance for credit losses
Net deferred loan costs	$ 0.2	$ 0.3

Loans, net and allowance for _4

Loans, net and allowance for credit losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable
Loans		$ 2,730,116
Loans	$ 2,870,969
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans		433,048
Loans	404,245
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable
Loans		433,048
Loans	404,245
Municipal
Accounts, Notes, Loans and Financing Receivable
Loans		166,210
Loans	176,935
Commercial, Industrial and Municipal
Accounts, Notes, Loans and Financing Receivable
Loans		599,258
Loans	581,180
Real estate
Accounts, Notes, Loans and Financing Receivable
Loans		2,040,555
Loans	2,203,997
Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans		1,709,827
Loans	1,846,350
Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans		330,728
Loans	357,647
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans		90,303
Loans	85,792
Indirect Auto
Accounts, Notes, Loans and Financing Receivable
Loans		76,461
Loans	78,953
Consumer Other
Accounts, Notes, Loans and Financing Receivable
Loans		$ 13,842
Loans	$ 6,839

Loans, net and allowance for _5

Loans, net and allowance for credit losses - Changes in Allowance for Loan Losses Account by Major Classification of Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Allowance for loan losses:
Beginning Balance	$ 23,218	$ 29,374	$ 27,472	$ 28,383
Charge-offs	(65)	(101)	(217)	(554)
Recoveries	23	99	141	293
Provisions (credits)	(166)	450	(1,103)	1,700
Ending balance	23,010	29,822	23,010	29,822
Cumulative impact of adoption \| ASU 2016-13
Allowance for loan losses:
Beginning Balance			(3,283)
Adjusted Balance
Allowance for loan losses:
Beginning Balance			24,189
Commercial
Allowance for loan losses:
Beginning Balance	2,751	6,522	4,365	7,466
Charge-offs			(4)	(161)
Recoveries	4	10	9	39
Provisions (credits)	(504)	(12)	(436)	(824)
Ending balance	2,251	6,520	2,251	6,520
Commercial \| Cumulative impact of adoption \| ASU 2016-13
Allowance for loan losses:
Beginning Balance			(1,683)
Commercial \| Adjusted Balance
Allowance for loan losses:
Beginning Balance			2,682
Municipal
Allowance for loan losses:
Beginning Balance	827	1,244	1,247	987
Provisions (credits)	40	7	(1,127)	264
Ending balance	867	1,251	867	1,251
Municipal \| Cumulative impact of adoption \| ASU 2016-13
Allowance for loan losses:
Beginning Balance			747
Municipal \| Adjusted Balance
Allowance for loan losses:
Beginning Balance			1,994
Commercial real estate
Allowance for loan losses:
Beginning Balance	14,961	17,569	17,915	15,928
Charge-offs		(15)		(147)
Recoveries		32	1	109
Provisions (credits)	134	437	523	2,133
Ending balance	15,095	18,023	15,095	18,023
Commercial real estate \| Cumulative impact of adoption \| ASU 2016-13
Allowance for loan losses:
Beginning Balance			(3,344)
Commercial real estate \| Adjusted Balance
Allowance for loan losses:
Beginning Balance			14,571
Residential real estate
Allowance for loan losses:
Beginning Balance	3,767	3,220	3,072	3,209
Charge-offs				(2)
Recoveries	3	1	22	4
Provisions (credits)	(128)	9	(163)	19
Ending balance	3,898	3,230	3,898	3,230
Residential real estate \| Cumulative impact of adoption \| ASU 2016-13
Allowance for loan losses:
Beginning Balance			967
Residential real estate \| Adjusted Balance
Allowance for loan losses:
Beginning Balance			4,039
Consumer
Allowance for loan losses:
Beginning Balance	912	819	873	793
Charge-offs	(65)	(86)	(213)	(244)
Recoveries	16	56	109	141
Provisions (credits)	36	9	100	108
Ending balance	$ 899	$ 798	899	$ 798
Consumer \| Cumulative impact of adoption \| ASU 2016-13
Allowance for loan losses:
Beginning Balance			30
Consumer \| Adjusted Balance
Allowance for loan losses:
Beginning Balance			$ 903

Loans, net and allowance for _6

Loans, net and allowance for credit losses - Allocation of Allowance for Loan Losses and Related Loans by Major Classification of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Allowance for loan losses:
Ending balance	$ 23,010	$ 23,218	$ 27,472	$ 29,822	$ 29,374	$ 28,383
Ending balance			27,472
Ending balance: individually evaluated for impairment			40
Ending balance: individually evaluated for impairment	42
Ending balance: collectively evaluated for impairment			27,432
Ending balance: collectively evaluated for impairment	22,968
Loans receivable:
Loans	2,870,969
Ending balance			2,730,116
Ending balance: individually evaluated for impairment			3,921
Ending balance: collectively evaluated for impairment	2,867,474		2,726,195
Real estate
Loans receivable:
Ending balance: individually evaluated for impairment	3,453
Non-real estate
Loans receivable:
Ending balance: individually evaluated for impairment	42
Commercial
Allowance for loan losses:
Ending balance	2,251	2,751	4,365	6,520	6,522	7,466
Ending balance			4,365
Ending balance: individually evaluated for impairment			19
Ending balance: individually evaluated for impairment	42
Ending balance: collectively evaluated for impairment			4,346
Ending balance: collectively evaluated for impairment	2,209
Loans receivable:
Loans	404,245
Ending balance			433,048
Ending balance: individually evaluated for impairment			98
Ending balance: collectively evaluated for impairment	404,142		432,950
Commercial \| Real estate
Loans receivable:
Ending balance: individually evaluated for impairment	61
Commercial \| Non-real estate
Loans receivable:
Ending balance: individually evaluated for impairment	42
Municipal
Allowance for loan losses:
Ending balance	867	827	1,247	1,251	1,244	987
Ending balance			1,247
Ending balance: collectively evaluated for impairment			1,247
Ending balance: collectively evaluated for impairment	867
Loans receivable:
Loans	176,935
Ending balance			166,210
Ending balance: collectively evaluated for impairment	176,935		166,210
Commercial real estate
Allowance for loan losses:
Ending balance	15,095	14,961	17,915	18,023	17,569	15,928
Ending balance			17,915
Ending balance: collectively evaluated for impairment			17,915
Ending balance: collectively evaluated for impairment	15,095
Loans receivable:
Loans	1,846,350
Ending balance			1,709,827
Ending balance: individually evaluated for impairment			2,063
Ending balance: collectively evaluated for impairment	1,844,285		1,707,764
Commercial real estate \| Real estate
Loans receivable:
Ending balance: individually evaluated for impairment	2,065
Residential real estate
Allowance for loan losses:
Ending balance	3,898	3,767	3,072	3,230	3,220	3,209
Ending balance			3,072
Ending balance: individually evaluated for impairment			21
Ending balance: collectively evaluated for impairment			3,051
Ending balance: collectively evaluated for impairment	3,898
Loans receivable:
Loans	357,647
Ending balance			330,728
Ending balance: individually evaluated for impairment			1,760
Ending balance: collectively evaluated for impairment	356,320		328,968
Residential real estate \| Real estate
Loans receivable:
Ending balance: individually evaluated for impairment	1,327
Consumer
Allowance for loan losses:
Ending balance	899	$ 912	873	$ 798	$ 819	$ 793
Ending balance			873
Ending balance: collectively evaluated for impairment			873
Ending balance: collectively evaluated for impairment	899
Loans receivable:
Loans	85,792
Ending balance			90,303
Ending balance: collectively evaluated for impairment	$ 85,792		$ 90,303

Loans, net and allowance for _7

Loans, net and allowance for credit losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	$ 3,060	$ 3,060
Nonaccrual with an Allowance for Credit Losses	42	42
Nonaccrual with no Allowance for Credit Losses	3,018	3,018	$ 2,035
Interest Income Recorded for Nonaccrual Loans	11	426
Commercial
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	42	42
Nonaccrual with an Allowance for Credit Losses	42	42
Nonaccrual with no Allowance for Credit Losses			86
Commercial real estate
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	2,065	2,065
Nonaccrual with no Allowance for Credit Losses	2,065	2,065	1,155
Residential real estate
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	687	687
Nonaccrual with no Allowance for Credit Losses	687	687	562
Consumer
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	266	266
Nonaccrual with no Allowance for Credit Losses	$ 266	$ 266	$ 232

Loans, net and allowance for _8

Loans, net and allowance for credit losses - Summarized Information in Concerning to Impaired Loans (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	$ 3,646	$ 3,646
Unpaid Principal Balance, With no related allowance, Total	4,976	4,976
Average Recorded Investment, With no related allowance, Total	3,756	3,756
Interest Income Recognized, With no related allowance, Total	18	54
Recorded Investment, With an allowance recorded, Total	595	595
Unpaid Principal Balance, With an allowance recorded, Total	599	599
Related Allowance, With an allowance recorded, Total	41	41
Average Recorded Investment, With an allowance recorded, Total	665	755
Interest Income Recognized, With an allowance recorded, Total	10	24
Recorded Investment, Total	4,241	4,241
Unpaid Principal Balance, Total	5,575	5,575
Average Recorded Investment, Total	4,421	4,511
Interest Income Recognized, Total	28	78
Commercial
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	94	94
Unpaid Principal Balance, With no related allowance, Total	425	425
Average Recorded Investment, With no related allowance, Total	110	129
Interest Income Recognized, With no related allowance, Total	3	7
Recorded Investment, With an allowance recorded, Total	20	20
Unpaid Principal Balance, With an allowance recorded, Total	20	20
Related Allowance, With an allowance recorded, Total	19	19
Average Recorded Investment, With an allowance recorded, Total	27	29
Recorded Investment, Total	114	114
Unpaid Principal Balance, Total	445	445
Average Recorded Investment, Total	137	158
Interest Income Recognized, Total	3	7
Commercial real estate
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	2,389	2,389
Unpaid Principal Balance, With no related allowance, Total	3,193	3,193
Average Recorded Investment, With no related allowance, Total	2,431	2,497
Interest Income Recognized, With no related allowance, Total	9	31
Recorded Investment, With an allowance recorded, Total	332	332
Unpaid Principal Balance, With an allowance recorded, Total	332	332
Related Allowance, With an allowance recorded, Total	1	1
Average Recorded Investment, With an allowance recorded, Total	381	429
Interest Income Recognized, With an allowance recorded, Total	7	15
Recorded Investment, Total	2,721	2,721
Unpaid Principal Balance, Total	3,525	3,525
Average Recorded Investment, Total	2,812	2,926
Interest Income Recognized, Total	16	46
Residential real estate
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	918	918
Unpaid Principal Balance, With no related allowance, Total	1,102	1,102
Average Recorded Investment, With no related allowance, Total	957	915
Interest Income Recognized, With no related allowance, Total	6	16
Recorded Investment, With an allowance recorded, Total	243	243
Unpaid Principal Balance, With an allowance recorded, Total	247	247
Related Allowance, With an allowance recorded, Total	21	21
Average Recorded Investment, With an allowance recorded, Total	257	297
Interest Income Recognized, With an allowance recorded, Total	3	9
Recorded Investment, Total	1,161	1,161
Unpaid Principal Balance, Total	1,349	1,349
Average Recorded Investment, Total	1,214	1,212
Interest Income Recognized, Total	9	25
Consumer
Financing Receivable, Impaired
Recorded Investment, With no related allowance, Total	245	245
Unpaid Principal Balance, With no related allowance, Total	256	256
Average Recorded Investment, With no related allowance, Total	258	215
Recorded Investment, Total	245	245
Unpaid Principal Balance, Total	256	256
Average Recorded Investment, Total	$ 258	$ 215

Loans, net and allowance for _9

Loans, net and allowance for credit losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable
2023	$ 179,942
2022	728,589
2021	711,280
2020	222,328
2019	222,639
Prior	576,249
Revolving Loans Amortized Cost Basis	229,942
Total	2,870,969
Loans		$ 2,730,116
Gross charge-offs, 2022	32
Gross charge-offs, 2021	79
Gross charge-offs, 2020	50
Gross charge-offs, 2019	37
Gross charge-offs, Prior	15
Gross charge-offs, Revolving Loans Amortized Cost Basis	4
Total	217
Commercial
Accounts, Notes, Loans and Financing Receivable
2023	12,698
2022	40,553
2021	36,679
2020	28,862
2019	47,280
Prior	90,454
Revolving Loans Amortized Cost Basis	147,719
Total	404,245
Loans		433,048
Gross charge-offs, Revolving Loans Amortized Cost Basis	4
Total	4
Municipal
Accounts, Notes, Loans and Financing Receivable
2023	1,191
2022	48,439
2021	96,517
2020	11,387
2019	22
Prior	19,292
Revolving Loans Amortized Cost Basis	87
Total	176,935
Loans		166,210
Commercial real estate
Accounts, Notes, Loans and Financing Receivable
2023	120,735
2022	551,559
2021	497,020
2020	147,381
2019	154,435
Prior	375,220
Total	1,846,350
Loans		1,709,827
Residential real estate
Accounts, Notes, Loans and Financing Receivable
2023	21,155
2022	54,932
2021	67,074
2020	28,362
2019	17,125
Prior	87,647
Revolving Loans Amortized Cost Basis	81,352
Total	357,647
Loans		330,728
Consumer
Accounts, Notes, Loans and Financing Receivable
2023	24,163
2022	33,106
2021	13,990
2020	6,336
2019	3,777
Prior	3,636
Revolving Loans Amortized Cost Basis	784
Total	85,792
Loans		90,303
Gross charge-offs, 2022	32
Gross charge-offs, 2021	79
Gross charge-offs, 2020	50
Gross charge-offs, 2019	37
Gross charge-offs, Prior	15
Total	213
Pass
Accounts, Notes, Loans and Financing Receivable
Loans		2,708,780
Pass \| Commercial
Accounts, Notes, Loans and Financing Receivable
2023	12,683
2022	40,553
2021	36,636
2020	28,862
2019	47,241
Prior	89,914
Revolving Loans Amortized Cost Basis	139,540
Total	395,429
Loans		424,411
Pass \| Municipal
Accounts, Notes, Loans and Financing Receivable
2023	1,191
2022	48,439
2021	96,517
2020	11,387
2019	22
Prior	19,292
Revolving Loans Amortized Cost Basis	87
Total	176,935
Loans		166,210
Pass \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
2023	120,565
2022	551,075
2021	495,384
2020	147,219
2019	153,519
Prior	370,440
Total	1,838,202
Loans		1,699,041
Pass \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
2023	21,151
2022	54,932
2021	67,074
2020	28,033
2019	17,125
Prior	87,298
Revolving Loans Amortized Cost Basis	81,347
Total	356,960
Loans		329,098
Pass \| Consumer
Accounts, Notes, Loans and Financing Receivable
2023	24,163
2022	33,055
2021	13,885
2020	6,285
2019	3,765
Prior	3,602
Revolving Loans Amortized Cost Basis	772
Total	85,527
Loans		90,020
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans		15,331
Special Mention \| Commercial
Accounts, Notes, Loans and Financing Receivable
Revolving Loans Amortized Cost Basis	41
Total	41
Loans		7,822
Special Mention \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
2022	484
2019	298
Prior	434
Total	1,216
Loans		7,509
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans		6,005
Substandard \| Commercial
Accounts, Notes, Loans and Financing Receivable
2023	15
2021	43
2019	39
Prior	540
Revolving Loans Amortized Cost Basis	8,138
Total	8,775
Loans		815
Substandard \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
2023	170
2021	1,636
2020	162
2019	618
Prior	4,346
Total	6,932
Loans		3,277
Substandard \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
2023	4
2020	329
Prior	349
Revolving Loans Amortized Cost Basis	5
Total	687
Loans		1,630
Substandard \| Consumer
Accounts, Notes, Loans and Financing Receivable
2022	51
2021	105
2020	51
2019	12
Prior	34
Revolving Loans Amortized Cost Basis	12
Total	$ 265
Loans		$ 283

Loans, net and allowance for_10

Loans, net and allowance for credit losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	$ 3,060
Commercial
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	42
Commercial real estate
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	2,065
Residential real estate
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	687
Consumer
Financing Receivable, Recorded Investment, Past Due.
Nonaccrual loans, Total	$ 266

Loans, net and allowance for_11

Loans, net and allowance for credit losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due.
Total Due	$ 2,870,969
Loans		$ 2,730,116
Loans > 90 Days and Accruing	700	748
Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	5,655	3,986
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,884	2,091
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	2,061	367
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,710	1,528
Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	2,865,314	2,726,130
Commercial
Financing Receivable, Recorded Investment, Past Due.
Total Due	404,245
Loans		433,048
Loans > 90 Days and Accruing	60
Commercial \| Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	165	261
Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	57	137
Commercial \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	5	38
Commercial \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	103	86
Commercial \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	404,080	432,787
Municipal
Financing Receivable, Recorded Investment, Past Due.
Total Due	176,935
Loans		166,210
Municipal \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	176,935	166,210
Commercial real estate
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,846,350
Loans		1,709,827
Commercial real estate \| Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	2,052	438
Commercial real estate \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		102
Commercial real estate \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,660	2
Commercial real estate \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	392	334
Commercial real estate \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,844,298	1,709,389
Residential real estate
Financing Receivable, Recorded Investment, Past Due.
Total Due	357,647
Loans		330,728
Loans > 90 Days and Accruing	640	748
Residential real estate \| Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	2,093	2,278
Residential real estate \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,032	1,162
Residential real estate \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	20	128
Residential real estate \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,041	988
Residential real estate \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	355,554	328,450
Consumer
Financing Receivable, Recorded Investment, Past Due.
Total Due	85,792
Loans		90,303
Consumer \| Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,345	1,009
Consumer \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	795	690
Consumer \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	376	199
Consumer \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due	174	120
Consumer \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due	$ 84,447	$ 89,294

Loans, net and allowance for_12

Loans, net and allowance for credit losses - Allowance for Credit Losses on Off Balance Sheet Commitments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Financing Receivable, Allowance for Credit Losses
Balance at December 31, 2022	$ 179
Credit recorded in noninterest expense	(368)
Total allowance for credit losses on off balance sheet commitments	81
Cumulative impact of adoption
Financing Receivable, Allowance for Credit Losses
Balance at December 31, 2022	$ 270

Loans, net and allowance for_13

Loans, net and allowance for credit losses - Loan Modifications and Troubled Debt Restructurings (Details)	9 Months Ended
	Sep. 30, 2023 loan
Loans, net and allowance for credit losses
Number of loans	0
Number of subsequently defaulted on loans	0

Other assets - Components of Ot

Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Decrease in restricted equity securities	$ 4,000
Other real estate owned		$ 121
Mortgage servicing rights	885	914
Prepaid shares tax	949	48
Prepaid pension	2,553	2,314
Prepaid expenses	4,626	3,012
Restricted equity securities (FHLB and other)	5,664	9,630
Investment in low income housing partnership	5,135	5,446
Interest rate floor and swaps	27,553	22,196
Other assets	2,830	2,791
Total	49,567	46,071
Interest rate swaps
Interest rate floor and swaps	26,153	21,794
Interest rate floor
Interest rate floor and swaps	$ 772	$ 1

Fair value estimates - Transfer

Fair value estimates - Transfers Between Levels (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Fair value estimates
Fair value of assets transfers into level 3	$ 0	$ 0
Fair value of assets transfers out of level 3	0	0
Fair value of liabilities transfers into level 3	0	0
Fair value of liabilities transfers out of level 3	$ 0	$ 0

Fair value estimates - Schedule

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	$ 382,319	$ 477,813
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	179,146	180,297
U.S. government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	2,038	16,370
State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	53,987	55,358
State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	61,798	88,407
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	3,617	3,626
Residential mortgage-backed securities, U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	749	942
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	80,892	132,703
Common equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	92	110
Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	772	1
Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	26,153	21,794
Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(25,366)	(21,466)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	179,238	180,407
Level 1 \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	179,146	180,297
Level 1 \| Common equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	92	110
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	203,081	297,406
Level 2 \| U.S. government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	2,038	16,370
Level 2 \| State and Municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	53,987	55,358
Level 2 \| State and Municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	61,798	88,407
Level 2 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	3,617	3,626
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	749	942
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	80,892	132,703
Level 2 \| Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	772	1
Level 2 \| Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	26,153	21,794
Level 2 \| Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	$ (25,366)	$ (21,466)

Fair value estimates - Schedu_2

Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Loans individually evaluated for credit loss	$ 3,495
Impaired loans		$ 220
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Loans individually evaluated for credit loss	$ 3,495
Impaired loans		$ 220

Fair value estimates - Addition

Fair value estimates - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - Level 3 - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Loans individually evaluated for credit loss
Fair Value Inputs, Assets, Quantitative Information
Assets measured at fair value	$ 3,495
Loans individually evaluated for credit loss \| Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	22.80%
Range and weighted average of liquidation expenses	3%
Loans individually evaluated for credit loss \| Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	77%
Range and weighted average of liquidation expenses	6%
Loans individually evaluated for credit loss \| Weighted Average
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	60.70%
Range and weighted average of liquidation expenses	5.50%
Impaired Loans
Fair Value Inputs, Assets, Quantitative Information
Assets measured at fair value		$ 220
Impaired Loans \| Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments		21.60%
Range and weighted average of liquidation expenses		3%
Impaired Loans \| Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments		97%
Range and weighted average of liquidation expenses		6%
Impaired Loans \| Weighted Average
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments		77.70%
Range and weighted average of liquidation expenses		4.90%

Fair value estimates - Carrying

Fair value estimates - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Investment securities:
Available-for-sale	$ 382,227	$ 477,703
Common equity securities	92	110
Held-to-maturity	68,808	76,563
Mortgage servicing rights	885	914
Financial liabilities:
Subordinated debentures	33,000	33,000
Carrying Value
Financial assets:
Cash and due from banks	254,535	37,868
Investment securities:
Available-for-sale	382,227	477,703
Common equity securities	92	110
Held-to-maturity	86,246	91,179
Net loans	2,847,959	2,702,644
Accrued interest receivable	12,769	11,715
Mortgage servicing rights	885	914
Restricted equity securities (FHLB and other)	5,664	9,630
Interest rate floor	772	1
Interest rate swaps	26,153	21,794
Total assets	3,617,302	3,353,558
Financial liabilities:
Deposits	3,365,083	3,046,598
Short-term borrowings	27,020	114,930
Long-term debt	25,000	555
Subordinated debentures	33,000	33,000
Accrued interest payable	4,777	903
Interest rate swap	25,366	21,466
Total liabilities	3,480,246	3,217,452
Fair Value
Financial assets:
Cash and due from banks	254,535	37,868
Investment securities:
Available-for-sale	382,227	477,703
Common equity securities	92	110
Held-to-maturity	68,808	76,563
Net loans	2,622,689	2,562,780
Accrued interest receivable	12,769	11,715
Mortgage servicing rights	1,706	1,762
Restricted equity securities (FHLB and other)	5,664	9,630
Interest rate floor	772	1
Interest rate swaps	26,153	21,794
Total assets	3,375,415	3,199,926
Financial liabilities:
Deposits	3,358,194	3,035,615
Short-term borrowings	27,020	114,743
Long-term debt	24,598	555
Subordinated debentures	31,858	53,998
Accrued interest payable	4,777	903
Interest rate swap	25,366	21,466
Total liabilities	3,471,814	3,227,280
Level 1
Financial assets:
Cash and due from banks	254,535	37,868
Investment securities:
Available-for-sale	179,146	180,297
Common equity securities	92	110
Level 2
Investment securities:
Available-for-sale	203,081	294,706
Held-to-maturity	68,808	76,563
Accrued interest receivable	12,769	11,715
Mortgage servicing rights	1,706	1,762
Restricted equity securities (FHLB and other)	5,664	9,630
Interest rate floor	772	1
Interest rate swaps	26,153	21,794
Financial liabilities:
Deposits	3,358,194	3,035,615
Short-term borrowings	27,020	114,743
Long-term debt	24,598	555
Subordinated debentures	31,858	53,998
Accrued interest payable	4,777	903
Interest rate swap	25,366	21,466
Level 3
Investment securities:
Net loans	$ 2,622,689	$ 2,562,780

Employee benefit plans - Compon

Employee benefit plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Components of net periodic pension cost:
Salaries and employee benefits expense	$ 8,784	$ 8,474	$ 26,346	$ 24,365
Pension Benefits
Components of net periodic pension cost:
Salaries and employee benefits expense	426	373	1,300	970
Interest cost	164	114	492	342
Expected return on plan assets	(293)	(352)	(878)	(1,056)
Amortization of unrecognized net loss	50	50	149	149
Net periodic pension income:	$ (79)	$ (188)	$ (237)	$ (565)

Employee benefit plans - Additi

Employee benefit plans - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Common stock available for grant as awards	17,364		17,364
Salaries and employee benefits expense	$ 157	$ 223	$ 473	$ 613
2023 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Common stock available for grant as awards	96,572		96,572
Salaries and employee benefits expense	$ 102		$ 102
Non-Performance-based restricted stock \| 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units vesting period			3 years
Performance-based restricted stock units \| 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units vesting period			3 years
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units			3 years
Average return on equity period used for conditions for vesting of performance-based restricted stock units			3 years
Restricted Stock \| 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation expense	$ 1,400		$ 1,400
Weighted average vesting period			1 year 9 months 18 days
Restricted stock and restricted stock units in aggregate \| 2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares				19,787
Restricted stock and restricted stock units in aggregate \| 2023 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares			23,428

Derivatives and hedging activ_3

Derivatives and hedging activities - Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Derivatives, Fair Value [Line Items]
Amortized Amount of the Hedged Assets/(Liabilities)	$ 27,553	$ 22,196
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Available-for-sale Securities, Debt Securities		Available-for-sale Securities, Debt Securities
Hedged Asset, Statement of Financial Position [Extensible Enumeration]	Available-for-sale Securities, Debt Securities
Fair value hedges \| Derivatives designated as hedging instruments \| Interest Rate Swaps
Derivatives, Fair Value [Line Items]
Amortized Amount of the Hedged Assets/(Liabilities)	$ 100,000
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	(779)
Amortized Cost Basis Amount of the Hedged Assets	144,200
Amounts of designated hedged items	$ 115,800

Derivatives and hedging activ_4

Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) security	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Derivatives, Fair Value
Interest rate floor and swaps		$ 27,553		$ 22,196
Liability Derivatives		25,953		21,466
Cash collateral		27,020		14,530
Net Amounts of Assets presented in the Balance Sheet		25,953		21,466
Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income	$ 20		$ 276
Interest Rate Swaps
Derivatives, Fair Value
Interest rate floor and swaps		26,153		21,794
Interest Rate Floor
Derivatives, Fair Value
Interest rate floor and swaps		772		1
Credit-risk contract
Derivatives, Fair Value
Net Amounts of Assets presented in the Balance Sheet				2
Credit-risk contract \| Maximum
Derivatives, Fair Value
Net Amounts of Assets presented in the Balance Sheet		1
Derivatives designated as hedging instruments \| Other Assets.
Derivatives, Fair Value
Interest rate floor and swaps		813		1
Derivatives designated as hedging instruments \| Interest rate products \| Other Assets.
Derivatives, Fair Value
Notional amount		100,000
Interest rate floor and swaps		813		1
Derivatives not designated as hedging instruments \| Other Assets.
Derivatives, Fair Value
Interest rate floor and swaps		26,740		22,195
Derivatives not designated as hedging instruments \| Other Liabilities.
Derivatives, Fair Value
Liability Derivatives		25,953		21,466
Derivatives not designated as hedging instruments \| Interest rate products \| Other Assets.
Derivatives, Fair Value
Notional amount		223,901
Interest rate floor and swaps		26,740		22,195
Derivatives not designated as hedging instruments \| Interest rate products \| Other Liabilities.
Derivatives, Fair Value
Notional amount		223,901
Liability Derivatives		25,953		21,466
Derivatives not designated as hedging instruments \| Other \| Other Assets.
Derivatives, Fair Value
Notional amount		1,499
Derivatives not designated as hedging instruments \| Other \| Other Liabilities.
Derivatives, Fair Value
Notional amount		$ 7,460
Derivatives not designated as hedging instruments \| Risk participation agreements
Derivatives, Fair Value
Notional amount				1,500
Derivatives not designated as hedging instruments \| Interest Rate Swaps
Derivatives, Fair Value
Number of instruments held \| security		105
Notional amount		$ 456,800		187,300
Derivatives not designated as hedging instruments \| Interest Rate Floor
Derivatives, Fair Value
Notional amount				$ 25,000
Cash Flow Hedge \| Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income		$ 5

Derivatives and hedging activ_5

Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Derivative Instruments, Gain (Loss)
Amount of Gain (Loss) Recognized in OCI Included Component			$ 779		$ (47)
Interest income
Derivative Instruments, Gain (Loss)
Amount of Gain Reclassified from Accumulated OCI into Income	$ (16)	$ 4	(48)	$ 228
Cash Flow Hedge
Derivative Instruments, Gain (Loss)
Amount of (Loss) Recognized in OCI on Derivative		(43)	(1)	(512)
Amount of Gain (Loss) Recognized in OCI Included Component		(4)		(497)
Amount of (Loss) Recognized in OCI Excluded Component		(39)	(1)	(15)
Amount of Gain Reclassified from Accumulated OCI into Income	(16)	4	(48)	228
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component		20		276
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component	(16)	(16)	(48)	(48)
Cash Flow Hedge \| Interest rate products \| Interest income
Derivative Instruments, Gain (Loss)
Amount of (Loss) Recognized in OCI on Derivative		(43)	(1)	(512)
Amount of Gain (Loss) Recognized in OCI Included Component		(4)		(497)
Amount of (Loss) Recognized in OCI Excluded Component		(39)	(1)	(15)
Amount of Gain Reclassified from Accumulated OCI into Income	(16)	4	(48)	228
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component		20		276
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component	$ (16)	$ (16)	$ (48)	$ (48)

Derivatives and hedging activ_6

Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on the Income Statement and Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments, Gain (Loss)
Total amounts of income and expense line items presented in the statements of income and comprehensive income (loss) in which the effects of fair value or cash flow hedges are recorded	$ 747	$ (46)	$ 826	$ (740)
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	$ (16)	$ (16)	(48)	(48)
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 (loss) in which the effects of fair value or cash flow hedges are recorded	$ 188	$ 4	318	228
The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships
Hedged items	(731)		(779)
Derivatives designated as hedging instruments	935		1,145
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$ (16)	4	$ (48)	228
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component		$ 20		$ 276

Derivatives and hedging activ_7

Derivatives and hedging activities - Effect of Derivative Instruments Not Designated as Hedging Instruments on the Statements of Income and Comprehensive (Loss) Income (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ 195	$ 130	$ 87	$ 656
Interest Rate Swaps \| Interest Rate Swap Revenue
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	194	129	56	652
Other
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ 1	1	31	4
Fee Income \| Interest Rate Swap Revenue
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income		$ 2	$ 457	$ 106

Derivatives and hedging activ_8

Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Offsetting of Derivative Assets
Gross Amounts of Recognized Assets	$ 27,553	$ 22,196
Net Amounts of Assets presented in the Balance Sheet	27,553	22,196
Gross Amounts Not Offset presented in the Balance Sheet - Cash Collateral Received	27,020	14,530
Net Amount	533	7,666
Offsetting of Derivative Liabilities
Gross Amounts of Recognized Liabilities	25,953	21,466
Net Amounts of Assets presented in the Balance Sheet	25,953	21,466
Gross Amounts Not Offset presented in the Balance Sheet - Financial Instruments	25,953	$ 21,466
Cash collateral paid but not offset	$ 0

Deposits - Components of Intere

Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Deposits.
Money market accounts	$ 767,868	$ 685,323
Now accounts	825,066	772,712
Savings accounts	447,684	523,931
Time deposits less than $250	512,646	199,136
Time deposits $250 or more	120,748	92,731
Total interest-bearing deposits	2,674,012	2,273,833
Noninterest-bearing deposits	691,071	772,765
Total deposits	$ 3,365,083	$ 3,046,598

Deposits (Details)

Deposits (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Affiliate company deposits \| Assets pledged as collateral
Cash and Cash Equivalents
Deposit liabilities uninsured by FDIC	$ 0.2
Retail accounts
Cash and Cash Equivalents
Percentage of deposit held	41%
Commercial accounts
Cash and Cash Equivalents
Percentage of deposit held	32.80%
Municipal relationships
Cash and Cash Equivalents
Percentage of deposit held	18.10%
Municipal relationships \| Collateralized by letters of credit
Cash and Cash Equivalents
Letters of credit pledged as collateral	$ 475.7
Brokered deposits
Cash and Cash Equivalents
Percentage of deposit held	8.10%
Deposit uninsured by FDIC
Cash and Cash Equivalents
Percentage of deposit held	28.40%	36.90%
Deposit liabilities uninsured by FDIC	$ 955.9	$ 1,100

Borrowings (Details)

Borrowings (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Short-term borrowings
Ending Balance	$ 27,020	$ 114,930
Average Balance	43,125	42,680
Maximum Month-End Balance	$ 185,020	$ 142,075
Weighted Average Rate for the Year	4.93%	2.58%
Weighted Average Rate at End of Year	5.33%	4.43%
Other borrowings
Short-term borrowings
Ending Balance	$ 27,020	$ 14,530
Average Balance	17,495	10,033
Maximum Month-End Balance	$ 27,020	$ 16,100
Weighted Average Rate for the Year	5.03%	2.10%
Weighted Average Rate at End of Year	5.33%	4.30%
FHLB Advances
Short-term borrowings
Ending Balance		$ 100,400
Average Balance	$ 25,630	32,647
Maximum Month-End Balance	$ 158,000	$ 125,975
Weighted Average Rate for the Year	4.86%	2.73%
Weighted Average Rate at End of Year		4.45%

Borrowings - Additional Informa

Borrowings - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Short-term borrowings
Short-term borrowings	$ 27,020	$ 114,930
Peoples Bank
Short-term borrowings
Maximum borrowing capacity	1,200,000	1,200,000
Outstanding amount in borrowings	25,000	101,000
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	$ 380,900	$ 388,800

Borrowings - Long-term debt adv

Borrowings - Long-term debt advances (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument
Long-term debt	$ 25,000	$ 555
Long-term 4.69% fixed rate debt due March 2023
Debt Instrument
Long-term debt		$ 555
Fixed interest rate (as a percent)		4.69%
Long-term 4.37% fixed rate debt due March 2025
Debt Instrument
Long-term debt	$ 10,000
Fixed interest rate (as a percent)	4.37%
Long-term 4.20% fixed rate debt due March 2026
Debt Instrument
Long-term debt	$ 15,000
Fixed interest rate (as a percent)	4.20%

Borrowings - Maturities of long

Borrowings - Maturities of long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Borrowings
2025	$ 10,000
2026	15,000
Total long-term debt	25,000	$ 555
FHLB long-term advances	$ 25,000

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

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 6,746	$ 9,425	$ 7,579	$ 9,968	$ 9,353	$ 9,630	$ 23,750	$ 28,951

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false