Peoples Financial Services (PFIS) 10-K15 Mar 242023 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2023	Feb. 29, 2024	Jun. 30, 2023
Document and Entity Information
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 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		7,058,749
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0001056943
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
ICFR Auditor Attestation Flag	true
Entity Public Float			$ 312,240,000
Auditor Firm ID	23
Auditor Name	Baker Tilly US, LLP
Auditor Location	Allentown, Pennsylvania
Document Financial Statement Error Correction [Flag]	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Cash and cash equivalents
Cash and due from banks	$ 33,524	$ 37,675
Interest-bearing deposits in other banks	9,141	193
Federal funds sold	144,700
Total cash and cash equivalents	187,365	37,868
Investment securities:
Available for sale: Amortized cost of $450,454 and $543,953, respectively, net of allowance for credit losses of $0 at December 31, 2023 and December 31, 2022	398,927	477,703
Equity investments carried at fair value	98	110
Held to maturity: Fair value of $71,698 and $76,563, respectively, net of allowance for credit losses of $0 at December 31, 2023 and 2022	84,851	91,179
Total investment securities	483,876	568,992
Loans	2,849,897
Less: allowance for credit losses	21,895
Net loans	2,828,002
Loans		2,730,116
Less: allowance for credit losses		27,472
Net loans		2,702,644
Loans held for sale	250
Goodwill	63,370	63,370
Premises and equipment, net	61,276	55,667
Bank owned life insurance	49,397	48,344
Deferred tax assets	13,770	18,739
Accrued interest receivable	12,734	11,715
Intangible assets, net		105
Other assets	42,249	46,071
Total assets	3,742,289	3,553,515
Deposits:
Noninterest-bearing	644,683	772,765
Interest-bearing	2,634,354	2,273,833
Total deposits	3,279,037	3,046,598
Short-term borrowings	17,590	114,930
Long-term debt	25,000	555
Subordinated debt	33,000	33,000
Accrued interest payable	5,765	903
Other liabilities	41,475	42,179
Total liabilities	3,401,867	3,238,165
Stockholders' equity:
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,040,852 shares at December 31, 2023 and 7,158,017 shares at December 31, 2022	14,093	14,321
Capital surplus	122,130	126,850
Retained earnings	248,550	230,515
Accumulated other comprehensive loss	(44,351)	(56,336)
Total stockholders' equity	340,422	315,350
Total liabilities and stockholders' equity	$ 3,742,289	$ 3,553,515

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
CONSOLIDATED BALANCE SHEETS
Available for sale, amortized cost, net of allowance	$ 450,454	$ 543,953
Available for sale, credit loss	0	0
Held-to-maturity, Fair value	71,698	76,563
Held-to-maturity, credit loss	$ 0	$ 0
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) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest and fees on loans:
Taxable	$ 129,013	$ 95,505	$ 82,493
Tax-exempt	5,628	5,084	3,957
Interest and dividends on investment securities:
Taxable	7,912	8,234	5,464
Tax-exempt	1,582	2,066	1,731
Dividends	4	2	74
Interest on interest-bearing deposits in other banks	335	101	8
Interest on federal funds sold	5,377	342	330
Total interest income	149,851	111,334	94,057
Interest expense:
Interest on deposits	58,561	12,632	7,310
Interest on short-term borrowings	1,920	1,103	78
Interest on long-term debt	842	76	260
Interest on subordinated debt	1,774	1,774	1,774
Total interest expense	63,097	15,585	9,422
Net interest income	86,754	95,749	84,635
Provision for (credit to) credit losses	566	(449)	1,750
Net interest income after provision for (credit to) credit losses	86,188	96,198	82,885
Noninterest income:
Mortgage banking income	390	511	975
Increase in cash surrender value of life insurance	1,067	1,020	889
Interest rate swap revenue	390	622	759
Net (losses) gains on equity investment securities	(11)	(31)	2
Net gains (losses) on sale of investment securities available for sale	81	(1,976)
Gain on sale of Visa Class B shares			12,153
Total noninterest income	14,133	11,845	25,636
Noninterest expense:
Salaries and employee benefits expense	35,285	33,553	29,736
Net occupancy and equipment expense	17,146	16,578	12,848
Acquisition related expenses	1,816
Amortization of intangible assets	105	363	491
Net gains on sale of other real estate owned	(18)	(478)	(210)
Professional fees and outside services	2,810	2,715	2,137
FDIC insurance and assessments	2,131	1,300	1,117
Donations	1,619	1,381	1,435
Other expenses	6,926	7,265	7,450
Total noninterest expense	67,820	62,677	55,004
Income before income taxes	32,501	45,366	53,517
Provision for income tax expense	5,121	7,276	9,998
Net income	27,380	38,090	43,519
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale	14,804	(66,435)	(11,487)
Reclassification adjustment for net (gain) loss on sales included in net income	(81)	1,976
Change in benefit plan liabilities	1,129	370	2,109
Change in derivative fair value	(824)	(728)	(322)
Other comprehensive income (loss)	15,028	(64,817)	(9,700)
Income tax expense (benefit) related to other comprehensive income (loss)	3,043	(13,995)	(2,037)
Other comprehensive income (loss), net of income tax expense (benefit)	11,985	(50,822)	(7,663)
Comprehensive income (loss)	$ 39,365	$ (12,732)	$ 35,856
Per share data:
Basic	$ 3.85	$ 5.31	$ 6.05
Diluted	$ 3.83	$ 5.28	$ 6.02
Weighted average common shares outstanding:
Basic	7,107,908	7,168,092	7,196,160
Diluted	7,151,471	7,211,643	7,235,303
Dividends declared	$ 1.64	$ 1.58	$ 1.50
Service charges, fees, commissions and other
Noninterest income:
Revenue from contracts with customers	$ 7,728	$ 7,076	$ 6,169
Merchant services income
Noninterest income:
Revenue from contracts with customers	693	964	879
Commission and fees on fiduciary activities
Noninterest income:
Revenue from contracts with customers	2,219	2,229	2,273
Wealth management income
Noninterest income:
Revenue from contracts with customers	$ 1,576	$ 1,430	$ 1,537

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 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, 2020	$ 14,431	$ 129,274		$ 171,023	$ 2,149		$ 316,877
Net Income (Loss)				43,519			43,519
Other comprehensive loss, net of income tax benefit					(7,663)		(7,663)
Cash dividends declared				(10,792)			(10,792)
Stock compensation, including tax effects and expenses		546					546
Restricted stock issued:	18	(18)
Share retirement:	(108)	(2,253)					(2,361)
Balance at Dec. 31, 2021	14,341	127,549		203,750	(5,514)		340,126
Net Income (Loss)				38,090			38,090
Other comprehensive loss, net of income tax benefit					(50,822)		(50,822)
Cash dividends declared				(11,325)			(11,325)
Stock compensation, including tax effects and expenses		534					534
Restricted stock issued:	32	(32)
Share retirement:	(52)	(1,201)					(1,253)
Balance (ASC 326) 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)				27,380			27,380
Other comprehensive loss, net of income tax benefit					11,985		11,985
Cash dividends declared				(11,659)			(11,659)
Stock compensation, including tax effects and expenses		888					888
Restricted stock issued:	35	(35)
Share retirement:	(263)	(5,573)		(50)			(5,886)
Balance at Dec. 31, 2023	$ 14,093	$ 122,130		$ 248,550	$ (44,351)		$ 340,422

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends declared (in dollars per share)	$ 1.64	$ 1.58	$ 1.50
Restricted stock issued, shares	17,640	16,403	9,192
Share retirement, shares	131,686	27,733	54,285

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 27,380	$ 38,090	$ 43,519
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	2,794	3,088	2,702
Amortization of right-of-use lease asset	598	583	449
Amortization (accretion) of deferred loan fees, net	694	1,294	(491)
Amortization of intangibles	105	363	491
Amortization of low income housing partnerships	431	454	427
Provision for (credit to) credit losses	566	(449)	1,750
Net unrealized loss (gain) on equity investment securities	11	31	(2)
Gain on sale of Visa Class B shares			(12,153)
Net gain on sale of other real estate owned	(18)	(478)	(126)
Loans originated for sale	(4,133)	(12,200)	(24,387)
Proceeds from sale of loans originated for sale	3,871	12,655	25,147
Net loss (gain) on sale of loans originated for sale	12	(47)	(331)
Net amortization of investment securities	1,005	1,488	1,317
Net (gain) loss on sale of investment securities available-for-sale	(81)	1,976
Loss (gain) on sale of premises and equipment	3	(175)	(50)
Increase in cash surrender value of life insurance	(1,067)	(1,020)	(889)
Deferred income tax expense	1,268	611	450
Stock compensation, including tax effects and expenses	888	534	546
Net change in:
Accrued interest receivable	(1,019)	(3,187)	(273)
Other assets	(2,085)	(1,701)	1,128
Accrued interest payable	4,862	495	(328)
Other liabilities	(2,833)	(48)	1,875
Net cash provided by operating activities	33,252	42,357	40,771
Cash flows from investing activities:
Proceeds from sales of investment securities available-for-sale	67,363	43,503
Proceeds from repayments of investment securities:
Available-for-sale	25,328	41,191	57,513
Held-to-maturity	6,212	5,745	2,886
Proceeds from sale of Visa Class B shares			12,153
Purchases of investment securities:
Available-for-sale		(112,838)	(291,658)
Held-to-maturity		(25,872)	(66,943)
Net redemption (purchase of) of restricted equity securities	4,450	(5,585)	1,352
Net increase in loans	(123,335)	(402,699)	(151,955)
Investment in bank owned life insurance		(5,881)
Purchases of premises and equipment	(5,925)	(7,831)	(4,885)
Proceeds from the sale of premises and equipment	14	170	58
Proceeds from bank owned life insurance		1,312	451
Proceeds from sale of other real estate owned	139	966	925
Net cash used in investing activities	(25,754)	(467,819)	(440,103)
Cash flows from financing activities:
Net increase in deposits	232,439	83,201	526,284
Proceeds from long-term debt	25,000
Repayment of long-term debt	(555)	(2,156)	(12,058)
Net (decrease) increase in short-term borrowings	(97,340)	114,930	(50,000)
Retirement of common stock	(5,886)	(1,253)	(2,361)
Cash dividends paid	(11,659)	(11,325)	(10,792)
Net cash provided by financing activities	141,999	183,397	451,073
Net increase (decrease) in cash and cash equivalents	149,497	(242,065)	51,741
Cash and cash equivalents at beginning of period	37,868	279,933	228,192
Cash and cash equivalents at end of period	187,365	37,868	279,933
Supplemental disclosures:
Interest	58,235	15,090	9,750
Income taxes	3,462	$ 10,000	6,740
Noncash items:
Cumulative effect of adoption of ASC 326 on retained earnings, net of tax	2,364
Transfers of loans to other real estate			544
Origination of mortgage servicing rights			247
Initial recognition of right-of-use assets	3,878		2,731
Initial recognition of lease liability	$ 3,878		$ 2,731

Summary of significant accounti

Summary of significant accounting policies	12 Months Ended
Summary of significant accounting policies	Dec. 31, 2023
Summary of significant accounting policies
Summary of significant accounting policies	1. Summary of significant accounting policies: Nature of operations: The accompanying Consolidated Financial Statements include the accounts of Peoples Financial Services Corp. (the “Parent Company”) and its wholly-owned subsidiary, Peoples Security Bank and Trust Company ( “Peoples Bank” or when consolidated with the Parent Company, the “Company” or “Peoples”). All significant intercompany balances and transactions have been eliminated in consolidation. Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Bank. The Company services its retail and commercial customers through Peoples Bank is a state-chartered bank and trust company under the jurisdiction of the Pennsylvania Department of Banking and the FDIC. Peoples Bank’s primary product is loans to small and medium-sized businesses. Other lending products include one-to-four family residential mortgages and consumer loans. Peoples Bank primarily funds its loans by offering deposits to commercial enterprises and individuals. Deposit product offerings include checking accounts, savings accounts, money market accounts and certificates of deposits. The Company faces competition primarily from commercial banks, thrift institutions and credit unions within its market, many of which are larger in terms of assets and capital. In addition, mutual funds and security brokers compete for various types of deposits, and consumer, mortgage, leasing and insurance companies compete for various types of loans and leases. Principal methods of competing for banking and permitted nonbanking services include price, nature of product, quality of service and convenience of location. Peoples Financial Services Corp. and Peoples Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations. Basis of presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed parent company only financial information regarding the Parent Company. Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations. Subsequent Events: The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2023, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. 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 Peoples Bank, with Peoples 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. 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 Annual Report on Form 10-K. Pending regulatory and shareholder approvals, the Company expects the merger to be consummated in the third quarter 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 ACL 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 credit 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 annual consolidated financial statements for the year ended December 31, 2023. Therefore, an amendment to the previously filed quarterly report on Form 10-Q as of March 31, 2023 and each subsequent quarter 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 ACL is reflected in the consolidated financial statements as of and for the twelve months ended December 31, 2023. Estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the ACL, fair value of financial instruments, the valuation of deferred tax assets, the valuation of derivative instruments and impairment of goodwill. Actual results could differ from those estimates. Investment securities: Investment securities are classified and accounted for as either held to maturity or available for sale securities based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held to maturity when management has the positive intent and ability to hold such securities to maturity. Held to maturity securities are stated at amortized cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available for sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Available for sale securities are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in other comprehensive income (loss) in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value with unrealized gains and losses reported in earnings. Estimated fair values for investment securities are based on quoted market prices from a national pricing service. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums on callable debt securities are amortized to the earliest call date from the maturity date. Premiums on non-callable securities are amortized and discounts are accreted using the interest method over the expected life of the security. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans held for sale: Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan. Loans, net: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income at the time when they are paid by customer. The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial, commercial real estate, municipal and other related tax free loans. Retail loans consist of residential real estate and other consumer loans. The Company makes commercial loans for real estate development and other business purposes to its customers. The Company’s credit policies establish advance rates against the different forms of collateral that can be pledged against various commercial loans. Typically, the majority of loans will be underwritten to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. Generally, assets financed through commercial loans are used for the operations of the business. Repayment for these types of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include construction, mini-perm, or longer term loans financing commercial properties. Repayment of these loans is generally dependent upon either the ongoing business cash flow from an owner occupied property or the lease/rental income or sale of a non-owner occupied property. Commercial real estate loans typically require a loan to value of not greater than Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one-to-four family residential mortgage loans and consumer loans. Of primary concern in commercial real estate lending is the borrower’s and any guarantor’s creditworthiness and the feasibility and cash flow potential of the financed project. Additional considerations include: location, market and geographic concentration risks, loan to value, strength of guarantors and quality of tenants. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a higher level of risk than residential real estate loans, which could be caused by unfavorable conditions in the real estate market or the economy. To effectively monitor loans on income properties, the Company requires borrowers and loan guarantors, if any, to provide annual financial statements on commercial real estate loans and rent rolls where applicable. In reaching a decision on whether to make a commercial real estate loan, the Company considers and reviews a cash flow analysis of the borrower and guarantor, when applicable. In addition, the Company evaluates business cash flows, if applicable, net operating income of the property, the borrower’s expertise, credit history and the value of the underlying property. The Company manages commercial real estate credit risk by prudent underwriting with conservative debt service coverage and loan-to-value ratios at origination; lending to seasoned real estate owners/managers, frequently with personal guarantees of repayment; using reasonable appraisal practices; cross-collateralizing loans to one borrower when deemed prudent; and limiting the amount and types of construction lending. An environmental report is obtained when the possibility exists that hazardous materials may have existed on the site, or the site may have been impacted by adjoining properties that handled hazardous materials. Commercial loans are generally made on the basis of a business entity or individual borrower’s ability to make repayment from business cash flows or individual borrowers’ employment and other income. Commercial business loans tend to have a slightly higher risk than commercial real estate loans because collateral usually consists of business assets versus real estate. Further, any collateral securing such loans may depreciate over time and could be difficult to appraise and liquidate. As a result, repayment of commercial business loans may depend substantially on the success of the business itself. Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower, loan to value ratio and term. Residential mortgages may have amortizations up to 30 years. Consumer loans include installment loans, car loans, and overdraft lines of credit. These loans are both secured and unsecured. Consumer loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state insolvency laws, may limit the amount that can be recovered on such loans. Off-balance sheet financial instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as interest and fees on loans and are included in interest income when paid. The Company records an ACL for off-balance sheet financial instruments, if deemed necessary, separately as a liability. Nonperforming assets: Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans and accruing loans past due 90 days or more. Past due status is based on contractual terms of the loan. Generally, a loan is classified as nonaccrual when it is determined that the collection of all or a portion of interest or principal is doubtful or when a default of interest or principal has existed for 90 days or more, unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual, interest accruals discontinue and uncollected accrued interest is reversed against income in the current period. Interest collections after a loan has been placed on nonaccrual status are credited to a suspense account until either the loan is returned to performing status or charged-off. The interest accumulated in the suspense account is credited to income over the remaining life of the loan using the effective yield method if the nonaccrual loan is returned to performing status. However, if the nonaccrual loan is charged-off, the accumulated interest is applied as a reduction to principal at the time the loan is charged-off. A nonaccrual loan is returned to performing status when the loan is current as to principal and interest and has performed according to the contractual terms for a minimum of six months. 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. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The modification categories offered can generally fall within the following categories: ● Rate Modification — A modification in which the interest rate is changed to a below market rate. ● Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed. ● Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time. ● Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. ● Combination Modification — Any other type of modification, including the use of multiple categories above. The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: ● Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. ● Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. ● Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. ● Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. ● Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the ACL. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense. Allowance for credit losses: The ACL 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 held to maturity 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 ACL for loans is considered a critical accounting estimate 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 ACL. The ACL related to loans receivable and held to maturity debt securities 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 noninterest expense in the consolidated statements of income and comprehensive income (loss). ACL on Loans Receivable Effective January 1, 2023, the Company adopted the provisions of ASC 326 and modified its accounting policy for the ACL on loans. The ACL on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected credit 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. Segments are based primarily on regulatory reporting codes as the loans within each segment share similar risk characteristics and there is sufficient historical peer loss data to supplement the Company’s data used in the model. The segments include residential real estate, consumer, commercial and industrial, commercial real estate and municipal. The Company has identified the following pools subject to an estimate of credit loss: (1) 1-4 Family Construction; (2) Other Construction; (3) Farmland; (4) Revolving Secured by 1-4 Family; (5) Residential Secured by First Liens; (6) Residential Secured by Junior Liens; (7) Multifamily; (8) CRE Owner Occupied; (9) CRE Non-Owner Occupied; (10) Agriculture; (11) C&I; (12) Consumer; and (13) 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 ACL 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 ACL 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 ACL 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. Qualitative 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. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the adverse stress credit loss scenarios using regulatory stress testing scenarios. 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 ACL. 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 ACL 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. As of December 31, 2023 there were no acquired loans included in the ACL. ACL on Off-Balance Sheet Commitments The Company is required to include unfunded commitments for not unconditionally cancellable 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 ACL on unfunded loan commitments is included in other liabilities on the consolidated balance sheets and the related credit expense is recorded in other noninterest expense in the consolidated statements of income and comprehensive income (loss). ACL 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. ACL 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 ex

Investment securities

Investment securities	12 Months Ended
Investment securities	Dec. 31, 2023
Investment securities
Investment securities	2. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at December 31, 2023 and 2022 are summarized below. There is no ACL of debt securities available for sale or held to maturity at December 31, 2023. December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 197,920 $ $ 13,863 $ 184,057 U.S. government-sponsored enterprises 2,539 387 2,152 State and municipals: Taxable 67,831 10,731 57,100 Tax-exempt 75,742 8,618 67,124 Residential mortgage-backed securities: U.S. government agencies 758 34 724 U.S. government-sponsored enterprises 89,935 17,264 72,671 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 11,729 360 11,369 Corporate debt securities 4,000 270 3,730 Total $ 450,454 $ $ 51,527 $ 398,927 Held to maturity: Tax-exempt state and municipals $ 11,201 $ 1 $ 660 $ 10,542 Residential mortgage-backed securities: U.S. government agencies 15,400 2,653 12,747 U.S. government-sponsored enterprises 58,250 9,841 48,409 Total $ 84,851 $ 1 $ 13,154 $ 71,698 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 At December 31, 2023, our marketable equity security portfolio consisted of stock of one financial institution. At December 31, 2023 and December 31, 2022, we had $98 thousand and $110 thousand in equity securities recorded at fair value. At December 31, 2023, the fair value of our equity portfolio was less than the cost basis by thousand. The following is a summary of unrealized and realized gains and losses recognized in net income on equity marketable securities during 2023, 2022 and 2021. (Dollars in thousands) 2023 2022 2021 Net (loss) gain recognized during the period on equity securities $ (11) $ (31) $ 2 Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (11) $ (31) $ 2 The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available for sale at December 31, 2023, is summarized as follows: Amortized Fair (Dollars in thousands) Cost Value Within one year $ 22,594 $ 21,898 After one but within five years 192,724 178,449 After five but within ten years 53,280 46,627 After ten years 76,895 65,037 345,493 312,011 Mortgage-backed and other amortizing securities 104,961 86,916 Total $ 450,454 $ 398,927 Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The maturity distribution of the amortized cost and fair value, of debt securities classified as held to maturity at December 31, 2023, is summarized as follows: Amortized Fair (Dollars in thousands) Cost Value After one but within five years $ 569 $ 528 After five but within ten years 10,632 10,014 11,201 10,542 Mortgage-backed securities 73,650 61,156 Total $ 84,851 $ 71,698 Securities with a carrying value of $322.4 million and $168.0 million at December 31, 2023 2022 pledged in part to secure public deposits and certain other deposits as required or permitted by law; and as collateral for borrowing lines. At December 31, 2023, million was pledged to the Federal Reserve’s BTFP as a source of contingent liquidity. There was no correspondent amount in the prior year’s period. Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At December 31, 2023 and 2022, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. government agencies and sponsored enterprises that exceeded 10.0 percent of stockholders’ equity. The fair value and gross unrealized losses of investment securities with unrealized losses for which a credit loss has not been recognized at December 31, 2023 and 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: December 31, 2023 Less than Twelve Months Total Total # Unrealized Total # Unrealized Total # Unrealized (Dollars in thousands) Position Fair Value Losses Position Fair Value Losses Position Fair Value Losses Securities Held to Maturity State and municipals: Tax-exempt 2 $ 1,438 $ 36 10 $ 6,209 $ 624 12 $ 7,647 $ 660 Residential mortgage-backed securities: U.S. government agencies 4 12,747 2,653 4 12,747 2,653 U.S. government-sponsored enterprises 8 48,409 9,841 8 48,409 9,841 Total 2 $ 1,438 $ 36 22 $ 67,365 $ 13,118 24 $ 68,803 $ 13,154 Securities Available for Sale U.S. Treasury securities 43 $ 184,057 $ 13,863 43 $ 184,057 $ 13,863 U.S. government-sponsored enterprises 2 2,152 387 2 2,152 387 State and municipals: Taxable 1 $ 995 $ 6 65 56,105 10,725 66 57,100 10,731 Tax-exempt 2 575 5 93 66,393 8,613 95 66,968 8,618 Residential mortgage-backed securities: U.S. government agencies 3 724 34 3 724 34 U.S. government-sponsored enterprises 32 72,671 17,264 32 72,671 17,264 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 4 11,369 360 4 11,369 360 Corporate debt securities 6 3,730 270 6 3,730 270 Total 3 $ 1,570 $ 11 248 $ 397,201 $ 51,516 251 $ 398,771 $ 51,527 December 31, 2022 Less than Twelve Months Total Total # Unrealized Total # Unrealized Total # Unrealized (Dollars in thousands) Position Fair Value Losses Position Fair Value Losses Position Fair Value Losses Securities Held to Maturity State and municipals: Tax-exempt 3 $ 3,150 $ 29 10 $ 2,906 $ 783 13 $ 6,056 $ 812 Residential mortgage-backed securities: U.S. government agencies 2 5 3 14,283 3,016 5 14,288 3,016 U.S. government-sponsored enterprises 1 12 8 51,866 10,760 9 51,878 10,760 Total 6 $ 3,167 $ 29 21 $ 69,055 $ 14,559 27 $ 72,222 $ 14,588 Securities Available for Sale 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 36 27,823 1,661 74 56,758 9,828 110 84,581 11,489 Residential mortgage-backed securities: U.S. government agencies 3 899 39 1 43 1 4 942 40 U.S. government-sponsored enterprises 18 57,154 2,029 17 63,965 18,083 35 121,119 20,112 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 4 11,584 544 4 11,584 544 Corporate debt securites 1 953 47 5 2,673 327 6 3,626 374 Total 92 156,136 9,312 183 316,766 57,060 275 472,902 66,372 Management considered whether a credit loss existed related to the investments in an unrealized loss position by determining (i) whether the decline in fair value is attributable to adverse conditions specifically related to the financial condition of the security issuer or specific conditions in an industry or geographic area; (ii) whether the credit rating of the issuer of the security has been downgraded; (iii) whether dividend or interest payments have been reduced or have not been made and (iv) an adverse change in the remaining expected cash flows from the security such that the Company will not recover the amortized cost of the security. If the decline is judged to be due to factors related to credit, the credit loss should be recorded as an ACL with an offsetting entry to net income. The portion of the loss related to non-credit factors are recorded in OCI. Based on management’s assessment of the factors identified above, it is determined the fair value of all the identified investments being less than the amortized costs is primarily caused by the rapid increase in market rates and not credit quality. All interest payments have been received as scheduled and no material downgrades announced. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider the unrealized loss to be credit related, thus There was

Loans, net and allowance for cr

Loans, net and allowance for credit losses	12 Months Ended
Loans, net and allowance for credit losses	Dec. 31, 2023
Loans, net and allowance for credit losses
Loans, net and allowance for credit losses	3. Loans, net and allowance for credit losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at December 31, 2023 and 2022 are summarized as follows. Net deferred loan fees of $0.4 million and $0.3 million are included in loan balances at December 31, 2023 and 2022, respectively. (Dollars in thousands) December 31, 2023 December 31, 2022 Commercial and Industrial $ 368,411 $ 433,048 Municipal 175,304 166,210 Total 543,715 599,258 Real estate Commercial 1,863,118 1,709,827 Residential 360,803 330,728 Total 2,223,921 2,040,555 Consumer Indirect Auto 75,389 76,461 Consumer Other 6,872 13,842 Total 82,261 90,303 Total $ 2,849,897 $ 2,730,116 Loans outstanding to directors, executive officers, principal stockholders or to their affiliates totaled $3.1 million and $3.2 million at December 31, 2023 and 2022, respectively. Advances and new loans during 2023 totaled $1.3 million and $1.1 million during 2022. Payoffs and pay downs totaled $1.4 million and $1.1 million in 2023 and 2022, respectively. There were no related party loans that were classified as nonaccrual, past due, or restructured at December 31, 2023 and 2022. Deposits from related parties amounted to $7.8 million at December 31, 2023 and $6.8 million at December 31, 2022. At December 31, 2023, the majority of the Company’s loans were at least partially secured by real estate in the markets we operate in. Therefore, a primary concentration of credit risk is directly related to the real estate market in these regions. Changes in the general economy, local economy or in the real estate market could affect the ultimate collectability of this portion of the loan portfolio. Management does not believe there are any other significant concentrations of credit risk that could affect the loan portfolio. Loans are pledged to the FHLB-Pgh and the FRB as collateral for borrowing lines of credit as part of our contingent liquidity strategy. At December 31, 2023, Past Due Loans The major classification of loans by past due status at December 31, 2023 and 2022 are summarized as follows: December 31, 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 $ 53 $ 155 $ 10 $ 218 $ 368,193 $ 368,411 $ Municipal 175,304 175,304 Real estate: Commercial 152 5 279 436 1,862,682 1,863,118 Residential 1,456 50 1,610 3,116 357,687 360,803 986 Consumer 1,069 285 85 1,439 80,822 82,261 Total $ 2,730 $ 495 $ 1,984 $ 5,209 $ 2,844,688 $ 2,849,897 $ 986 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 The amount of residential loans in the formal process of foreclosure totaled $0.3 million at December 31, 2023 and $0.6 million at December 31, 2022. Nonaccrual Loans The following tables present the Company’s nonaccrual loans at December 31, 2023 and December 31, 2022. December 31, 2023 Total Nonaccrual with Nonaccrual with Nonaccrual an Allowance for no Allowance for (Dollars in thousands) Loans Credit Losses Credit Losses Commercial $ 10 $ 10 $ Municipal Real estate: Commercial 2,974 1,170 1,804 Residential 760 760 Consumer 218 218 Total $ 3,962 $ 1,180 $ 2,782 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 year ended December 31, 2023 was $449 thousand. Individually Analyzed Loans The following tables summarize information, under previously applicable GAAP, concerning impaired loans, as of and for the year ended December 31, 2022 and December 31, 2021, by major loan classification: December 31, 2022 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 78 $ 421 $ $ 119 $ 7 Municipal Real estate: Commercial 2,063 2,654 2,753 59 Residential 1,520 1,733 1,036 28 Consumer 232 244 218 Total 3,893 5,052 4,126 94 With an allowance recorded: Commercial 20 20 19 27 2 Municipal Real estate: Commercial Residential 240 244 21 286 12 Consumer Total 260 264 40 313 14 Total impaired loans Commercial 98 441 19 146 9 Municipal Real estate: Commercial 2,063 2,654 2,753 59 Residential 1,760 1,977 21 1,322 40 Consumer 232 244 218 Total $ 4,153 $ 5,316 $ 40 $ 4,439 $ 108 December 31, 2021 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 158 $ 481 $ $ 964 $ 13 Municipal Real estate: Commercial 2,376 3,120 2,719 22 Residential 873 1,073 1,016 19 Consumer 139 148 100 Total 3,546 4,822 4,799 54 With an allowance recorded: Commercial 41 41 40 1,091 15 Municipal Real estate: Commercial 513 543 109 802 22 Residential 401 401 26 436 13 Consumer Total 955 985 175 2,329 50 Total impaired loans Commercial 199 522 40 2,055 28 Municipal Real estate: Commercial 2,889 3,663 109 3,521 44 Residential 1,274 1,474 26 1,452 32 Consumer 139 148 100 Total $ 4,501 $ 5,807 $ 175 $ 7,128 $ 104 Credit Quality Indicators 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 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 December 31, 2023: (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial Pass $ 9,856 $ 38,172 $ 28,127 $ 29,966 $ 44,551 $ 82,190 $ 131,536 $ 650 $ 365,048 Special Mention 876 182 49 832 1,939 Substandard 15 19 42 33 534 781 1,424 Total Commercial 9,871 39,067 28,351 29,966 44,584 82,773 133,149 650 368,411 Municipal Pass 1,888 48,095 94,791 10,804 16 19,652 58 175,304 Special Mention Substandard Total Municipal 1,888 48,095 94,791 10,804 16 19,652 58 175,304 Commercial real estate Pass 156,277 553,754 491,506 143,068 153,426 351,142 117 1,849,290 Special Mention 1,299 360 2,761 4,420 Substandard 169 1,338 1,520 160 697 5,524 9,408 Total Commercial real estate 156,446 556,391 493,026 143,228 154,483 359,427 117 1,863,118 Residential real estate Pass 17,385 52,093 65,280 27,118 16,652 84,652 83,507 13,490 360,177 Special Mention Substandard 4 329 288 5 626 Total Residential real estate 17,389 52,093 65,280 27,447 16,652 84,940 83,512 13,490 360,803 Consumer Pass 27,053 30,307 12,460 5,441 3,107 2,981 694 82,043 Special Mention Substandard 58 79 31 30 20 218 Total Consumer 27,053 30,365 12,539 5,472 3,137 3,001 694 82,261 Total Loans $ 212,647 $ 726,011 $ 693,987 $ 216,917 $ 218,872 $ 549,793 $ 217,413 $ 14,257 $ 2,849,897 Gross charge-offs Commercial $ $ $ $ 21 $ $ 33 $ 4 $ $ 58 Municipal Commercial real estate 2,598 2,598 Residential real estate Consumer 95 101 69 49 55 369 Total Gross charge-offs $ $ 95 $ 101 $ 90 $ 49 $ 2,686 $ 4 $ $ 3,025 The following table presents under previously applicable GAAP, the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at December 31, 2022: 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 Modifications to Borrowers Experiencing Financial Difficulty The Company adopted ASU 2022-02, Financial Instruments - Credit Losses Troubled Debt Restructurings and Vintage Disclosures There were no loans made to borrowers experiencing financial difficulty that were modified during the twelve months ended December 31, 2023 and hence there were no loans made to borrowers experiencing financial difficulty that subsequently defaulted. Allowance for Credit Losses ACL on loans receivable The following tables present the balance of the ACL at December 31, 2023, 2022 and 2021. For the year ended December 31, 2023, the balance of the ACL is based on the CECL methodology, as presented in Note 1. For the years ended December 31, 2022 and 2021, 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. The following table represents the ACL by major classification of loan and whether the loans were individually or collectively evaluated and collateral dependent by class of loans at December 31, 2023 under ASC 326. December 31, 2023 Real estate (Dollars in thousands) Commercial Municipal Commercial Residential Consumer Total Allowance for credit losses: Beginning balance $ 4,365 $ 1,247 $ 17,915 $ 3,072 $ 873 $ 27,472 Impact of adopting ASC 326 (1,683) 747 (3,344) 967 30 (3,283) Beginning balance 2,682 1,994 14,571 4,039 903 24,189 Charge-offs (58) (2,598) (369) (3,025) Recoveries 11 1 24 129 165 (Credits) provisions (363) (1,206) 2,179 (281) 237 566 Ending balance $ 2,272 $ 788 $ 14,153 $ 3,782 $ 900 $ 21,895 Ending balance: individually evaluated for impairment 10 21 31 Ending balance: collectively evaluated for impairment $ 2,262 $ 788 $ 14,132 $ 3,782 $ 900 $ 21,864 Loans receivable: Ending balance $ 368,411 $ 175,304 $ 1,863,118 $ 360,803 $ 82,261 $ 2,849,897 Individually evaluated - collateral dependent - real estate 7 2,974 1,749 4,730 Individually evaluated - collateral dependent - non-real estate 10 10 Collectively evaluated for impairment $ 368,404 $ 175,304 $ 1,860,144 $ 359,054 $ 82,261 $ 2,845,167 The following tables represent 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 and December 31, 2021, prior to the adoption of ASC 326. December 31, 2022 Real estate (Dollars in thousands) Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 6,498 $ 1,955 $ 15,928 $ 3,209 $ 793 $ 28,383 Charge-offs (161) (284) (31) (311) (787) Recoveries 40 110 4 171 325 (Credits) provisions (2,012) (708) 2,161 (110) 220 (449) 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 December 31, 2021 Real estate (Dollars in thousands) Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 7,849 $ 885 $ 14,559 $ 3,129 $ 922 $ 27,344 Charge-offs (492) (252) (24) (188) (956) Recoveries 89 68 7 81 245 Provisions (credits) (948) 1,070 1,553 97 (22) 1,750 Ending balance $ 6,498 $ 1,955 $ 15,928 $ 3,209 $ 793 $ 28,383 Ending balance: individually evaluated for impairment 40 109 26 175 Ending balance: collectively evaluated for impairment $ 6,458 $ 1,955 $ 15,819 $ 3,183 $ 793 $ 28,208 Loans receivable: Ending balance $ 554,547 $ 58,580 $ 1,343,539 $ 297,624 $ 74,883 $ 2,329,173 Ending balance: individually evaluated for impairment 199 2,890 1,273 4,362 Ending balance: collectively evaluated for impairment $ 554,348 $ 58,580 $ 1,340,649 $ 296,351 $ 74,883 $ 2,324,811 ACL 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 year ended December 31, 2023: (Dollars in thousands) December 31, 2023 December 31, 2022 December 31, 2021 Beginning balance $ 179 $ 137 $ 122 Impact of adopting Topic 326 270 (Credit) debit recorded in noninterest expense (406) 42 15 Total allowance for credit losses on off balance sheet commitments $ 43 $ 179 $ 137

Off balance sheet financial ins

Off balance sheet financial instruments	12 Months Ended
Off balance sheet financial instruments	Dec. 31, 2023
Off balance sheet financial instruments
Off-balance sheet financial instruments	4. Off balance sheet financial instruments: The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused portions of lines of credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, unused portions of lines of credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company follows the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The contractual amounts of off-balance sheet commitments at December 31, 2023 and 2022 are summarized as follows: (Dollars in thousands) 2023 2022 Commitments to extend credit $ 435,015 $ 553,337 Unused portions of lines of credit 90,407 78,406 Standby letters of credit 62,155 57,626 $ 587,577 $ 689,369 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. Unused portions of lines of credit, including home equity and overdraft protection agreements, are commitments for possible future extensions of credit to existing customers. Unused portions of home equity lines are collateralized and generally have fixed expiration dates. Overdraft protection agreements are uncollateralized and usually do not carry specific maturity dates. Unused portions of lines of credit ultimately may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit expire within twelve months . The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending other loan commitments. The Company requires collateral supporting these standby letters of credit as deemed necessary. The amount of letters of credit secured with collateral is million at December 31, 2022. The carrying value of the liability for the Company’s obligations under guarantees for standby letters of credit was not material at December 31, 2023 and 2022.

Premises and equipment, net

Premises and equipment, net	12 Months Ended
Premises and equipment, net	Dec. 31, 2023
Premises and equipment, net
Premises and equipment, net	5. Premises and equipment, net: Premises and equipment at December 31, 2023 and 2022 are summarized as follows: (Dollars in thousands) 2023 2022 Land $ 7,302 $ 7,302 Premises and leasehold improvements 60,266 55,865 Right-of-use assets 10,576 7,980 Furniture, fixtures and equipment 21,878 20,626 Gross premises and equipment 100,022 91,773 Less: accumulated depreciation 38,746 36,106 Net premises and equipment $ 61,276 $ 55,667

Operating lease commitments and

Operating lease commitments and contingencies	12 Months Ended
Operating lease commitments and contingencies	Dec. 31, 2023
Operating lease commitments and contingencies
Operating lease commitments and contingencies	6. Operating lease commitments and contingencies: The Company is obligated under non-cancelable operating leases for certain branch locations. We determine if an arrangement is a lease at inception by assessing whether a contract contains a right to control an identified asset for a period of time in exchange for consideration. For all leases, we recognize a right-of-use asset and lease liability at the effective date of the lease. Operating leases right-of-use assets are included in premises and equipment, and lease liabilities are included in other liabilities in the consolidated balance sheet. We have no finance leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms generally containing one or more five-year renewal options. At December 31, 2023, the Company’s leases have remaining renewal terms that can extend the lease terms from five years to thirty years that are reasonably certain of being exercised. The weighted average remaining lease term at December 31, 2023 is 19.4 years. At December 31, 2022, the weighted average remaining lease term was years. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded with the remaining lease term. The discount rate used for leases added subsequently was the annual percentage increase outlined in the terms of each lease. There were At December 31, 2023, right-of-use assets of $10.6 million were included in premises and equipment, and the related lease liability totaled $11.0 million was included in other liabilities in the consolidated balance sheet. Right-of-use assets and the related lease liability were $8.0 million and $8.3 million, respectively, at December 31, 2022. There were two new leases in 2023 for our North Allegheny and King of Prussia Offices, and one lease, for the previous Doylestown branch, was not renewed. Rent expense for the years ended December 31, 2023, 2022 and 2021 amounted to Future minimum lease payments under operating leases are summarized as follows: (Dollars in thousands) 2024 $ 838 2025 858 2026 862 2027 789 2028 809 Thereafter 11,942 Total future minimum lease payments 16,098 Less amount representing interest (5,138) Present value of future minimum lease payments $ 10,960 Neither the Company nor any of its property is subject to any material legal proceedings. Management, after consultation with legal counsel, does not anticipate that the ultimate liability, if any, arising out of pending and threatened lawsuits will have a material effect on the operating results or financial position of the Company.

Other assets

Other assets	12 Months Ended
Other assets	Dec. 31, 2023
Other assets
Other assets	7. Other assets: The major components of other assets at December 31, 2023 and 2022 are summarized as follows: (Dollars in thousands) December 31, 2023 December 31, 2022 Other real estate owned $ $ 121 Mortgage servicing rights 870 914 Prepaid shares tax 949 48 Prepaid pension 3,764 2,314 Prepaid expenses 4,840 3,038 Restricted equity securities (FHLB and other) 5,180 9,630 Investment in low income housing partnership 5,015 5,446 Interest rate swaps 19,278 21,794 Interest rate floor 1 Other assets 2,353 2,765 Total $ 42,249 $ 46,071 Interest rate swaps balance represents the fair value of our commercial loan back-to-back swaps and is lower due to lower market rates. The Company originates one-to-four family residential mortgage loans for sale in the secondary market with servicing rights retained. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were

Deposits

Deposits	12 Months Ended
Deposits	Dec. 31, 2023
Deposits.
Deposits	8. Deposits: The major components of interest-bearing and noninterest-bearing deposits at December 31, 2023 and 2022 are summarized as follows: (Dollars in thousands) December 31, 2023 December 31, 2022 Interest-bearing deposits: Money market accounts $ 782,243 $ 685,323 NOW accounts 796,426 772,712 Savings accounts 429,011 523,931 Time deposits less than $250 505,409 199,136 Time deposits $250 or more 121,265 92,731 Total interest-bearing deposits 2,634,354 2,273,833 Noninterest-bearing deposits 644,683 772,765 Total deposits $ 3,279,037 $ 3,046,598 The aggregate amounts of maturities for all time deposits at December 31, 2023, are summarized as follows: (Dollars in thousands) 2024 $ 331,713 2025 53,168 2026 98,471 2027 46,401 2028 92,860 Thereafter 4,061 $ 626,674 Time deposits less than $250 thousand included $261.0 million and $23.6 million, at December 31, 2023 and December 31, 2022, respectively. The aggregate amount of deposits reclassified as loans was $0.2 million at December 31, 2023, and $0.6 million at December 31, 2022. Management evaluates transaction accounts that are overdrawn for collectability as part of its evaluation for credit losses.

Short-term borrowings

Short-term borrowings	12 Months Ended
Short-term borrowings	Dec. 31, 2023
Short-term borrowings
Short-term borrowings	9. Short-term borrowings: Short-term borrowings consisted of FHLB advances representing overnight borrowings or borrowings with original terms of less than twelve months and other borrowings related to collateral held from derivative counterparties at December 31, 2023, 2022 and 2021: At and for the year ended December 31, 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 $ 17,590 $ 19,160 $ 28,470 5.54 % 5.35 % FHLB advances 19,171 158,000 4.48 Total short-term borrowings $ 17,590 $ 38,331 $ 186,470 5.01 % 5.35 % 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 % 4.33 % FHLB advances 100,400 32,647 125,975 2.73 4.45 Total short-term borrowings $ 114,930 $ 42,680 $ 142,075 2.58 % 4.43 % At and for the year ended December 31, 2021 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End (Dollars in thousands, except percents) Balance Balance Balance the Year of the Year FHLB advances $ $ 13,973 $ 50,000 0.56 % % The Company has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At December 31, 2023, the maximum borrowing capacity was $1.2 billion of which $25.0 million was outstanding in long-term debt and $345.4 million was used to issue standby letters of credit to collateralize public fund deposits. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day. At December 31, 2023 $1.8 billion in loans were pledged to the FHLB providing $1.2 billion in available borrowing capacity. At December 31, 2022 The Company also has unsecured line of credit agreements with two correspondent banks, where the total line amount was $18.0 million at December 31, 2023 and 2022. There were amounts outstanding on either line of credit at December 31, 2023 or 2022. Interest on these borrowings accrues daily based on the daily federal funds rate. In addition to borrowings from FHLB and correspondent bank lines of credit, we have availability through the Federal Reserve Bank’s Discount Window and Bank Term Funding Program (BTFP) of $257.4 million and $191.0 million at December 31, 2023, respectively. The FRB’s Borrower-in-custody program allows depository institutions to pledge loans as collateral for Discount Window advances while retaining possession of the loan documentation. The BTFP allows depository institutions to borrow up to the par value of eligible securities pledged at the FRB. The Company tested the BTFP borrowing line during 2023 as part of its contingent liquidity plan. At December 31, 2023 $365.8 million in loans were pledged as collateral for the borrower-in-custody program and provided $246.1 million in borrowing capacity. At December 31, 2023, $191.0 million in securities were pledged to the BTFP while $11 thousand was pledged to the Discount Window. At the expiration of the BTFP on March 11, 2024, the Company’s intent is to transfer the eligible securities pledged to the Federal Reserve discount window. At December 31, 2022 $349.9 million in loans were pledged as collateral for the borrower-in-custody program and provided $232.2 million in borrowing capacity. At December 31, 2022,

Long-term debt

Long-term debt	12 Months Ended
Long-term debt	Dec. 31, 2023
Long-term debt
Long-term debt	10. Long-term debt: Long-term debt, consisting of advances from the FHLB, at December 31, 2023 and 2022 is as follows: Interest Rate (Dollars in thousands, except percents) Fixed December 31, 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, in years subsequent to December 31, 2023 are as follows: (Dollars in thousands) 2025 $ 10,000 2026 15,000 $ 25,000 The FHLB advances are not convertible and have a fixed rate. There were two new long-term advances entered into with the FHLB during 2023 and none in 2022.

Subordinated debt

Subordinated debt	12 Months Ended
Subordinated debt	Dec. 31, 2023
Subordinated debt
Subordinated debt	11. Subordinated debt: On June 1, 2020, the Company sold $33.0 million aggregate principal amount of Subordinated Notes due 2030 (the “2020 Notes”) to accredited investors. The 2020 Notes qualify as Tier 2 capital for regulatory capital purposes. The 2020 Notes bear interest at a rate of 5.375 percent per year for the first five years and then float based on a benchmark rate (as defined), provided that the interest rate applicable to the outstanding principal balance during the period the 2020 Notes are floating will at no time be less the 4.75 percent. Interest is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2020, for the first five years after issuance and payable quarterly in arrears thereafter on March 1, June 1, September 1, and December 1. The 2020 Notes mature on June 1, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after June 1, 2025 and prior to June 1, 2030. Additionally, if all or any portion of the 2020 Notes cease to be deemed Tier 2 Capital, the Company may redeem, in whole and not in part, at any time upon giving not less than ten days’ notice, an amount equal to one hundred percent (100 percent) of the principal amount outstanding plus accrued but unpaid interest to but excluding the date fixed for redemption. Holders of the 2020 Notes may not accelerate the maturity of the 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar proceeding by or against the Company.

Fair value of financial instrum

Fair value of financial instruments	12 Months Ended
Fair value of financial instruments	Dec. 31, 2023
Fair value of financial instruments
Fair value of financial instruments	12. Fair value of financial instruments: The following methods and assumptions were used by the Company to construct the summary table below containing the fair values and related carrying amounts of financial instruments measured at fair value: Investment securities: The fair values of marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model and quoted market prices. Individually evaluated loans: Interest rate swaps and floors: Assets and liabilities measured at fair value on a recurring basis at December 31, 2023 and 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 December 31, 2023 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 184,057 $ 184,057 $ $ U.S. government-sponsored enterprises 2,152 2,152 State and municipals: Taxable 57,100 57,100 Tax-exempt 67,124 67,124 Mortgage-backed securities: U.S. government agencies 724 724 U.S. government-sponsored enterprises 84,040 84,040 Corporate debt securities 3,730 3,730 Common equity securities 98 98 Total investment securities $ 399,025 $ 184,155 $ 214,870 $ Interest rate floor-other assets $ $ Interest rate swap-other assets $ 19,278 $ 19,278 Interest rate swap-other liabilities $ (18,808) $ (18,808) 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 December 31, 2023 and 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 December 31, 2023 Amount (Level 1) (Level 2) (Level 3) Loans individually evaluated for credit loss $ 4,740 $ $ $ 4,740 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 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands, except percents) Fair Value Range December 31, 2023 Estimate Valuation Techniques Unobservable Input (Weighted Average) Loans individually evaluated for credit loss $ 4,740 Appraisal of collateral Appraisal adjustments 22.8% to 82.4% (63.6)% Liquidation expenses 3.0% to 6.0% (5.2)% 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 December 31, 2023 and 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 December 31, 2023 Value Value (Level 1) (Level 2) (Level 3) Financial assets: Cash and due from banks $ 187,365 $ 187,365 $ 187,365 $ $ Investment securities: Available-for-sale 398,927 398,927 184,057 214,870 Common equity securities 98 98 98 Held-to-maturity 84,851 71,698 71,698 Net loans 2,828,002 2,593,151 2,593,151 Accrued interest receivable 12,734 12,734 12,734 Mortgage servicing rights 870 1,745 1,745 Restricted equity securities (FHLB and other) 5,180 5,180 5,180 Interest rate floor Interest rate swaps 19,278 19,278 19,278 Total $ 3,537,555 $ 3,290,426 Financial liabilities: Deposits $ 3,279,037 $ 3,274,774 $ $ 3,274,774 $ Short-term borrowings 17,590 17,590 17,590 Long-term debt 25,000 24,924 24,924 Subordinated debt 33,000 45,504 45,504 Accrued interest payable 5,765 5,765 5,765 Interest rate swaps 18,808 18,808 18,808 Total $ 3,379,200 $ 3,387,365 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 debt 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

Derivatives and hedging activit

Derivatives and hedging activities	12 Months Ended
Derivatives and hedging activities	Dec. 31, 2023
Derivatives and hedging activities
Derivatives and hedging activities	13. Derivatives and hedging activities: Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income/expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. 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, (AOCI) 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 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 no amount 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 December 31, 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) $ 143,573 $ $ 871 $ Fixed Rate Loans (2) 50,462 462 Total $ 194,035 $ $ 1,333 $ (1) Fixed Rate AFS Securities. 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 December 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $143.6 million. The amounts of the designated hedged items were $100.0 million. (2) Fixed Rate Loan Assets. These amounts include the carrying value of fixed rate loan 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 December 31, 2023, the principal value of the hedged item was $50.0 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 December 31, 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 sheets as of December 31, 2023 and December 31, 2022. Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities As of December 31, 2023 As of December 31, 2022 (1) As of December 31, 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 $ Other Assets $ Other Assets $ 1 $ 150,000 Other Liabilities $ 1,270 Other Liabilities $ Total derivatives designated as hedging instruments $ $ 1 $ $1,270 $ Derivatives not designated as hedging instruments Interest Rate Products $ 230,323 Other Assets $ 19,833 Other Assets $ 22,195 $ 230,323 Other Liabilities $ 19,364 Other Liabilities $ 21,466 Other Contracts 8,403 Other Assets 3 Other Assets 7,408 Other Liabilities Other Liabilities Total derivatives not designated as hedging instruments $ 19,836 $ 22,195 $ 19,364 $ 21,466 (1) The 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 December 31, 2023 and December 31, 2022. (Dollars in thousands) Twelve months ended December 31, 2023 Amount of (Loss) Recognized in OCI on Derivative Amount of (Loss) Recognized in OCI Included Component Amount of (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component Derivatives in Cash Flow Hedging Relationships Interest Rate Products $ (1) $ $ (1) Interest Income $ (48) $ $ (48) Total $ (1) $ $ (1) $ (48) $ $ (48) (Dollars in thousands) Twelve months ended December 31, 2022 Amount of (Loss) Recognized in OCI on Derivative Amount of (Loss) Recognized in OCI Included Component Amount of (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain Reclassified from Accumulated OCI into Income Amount of Gain Reclassified from Accumulated OCI into Income Included Component Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component Derivatives in Cash Flow Hedging Relationships Interest Rate Products $ (515) $ (497) $ (18) Interest Income $ 212 $ 276 $ (64) Total $ (515) $ (497) $ (18) $ 212 $ 276 $ (64) * Amounts disclosed are gross and not net of taxes. Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Income and Comprehensive Income (Loss) The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of income and comprehensive income (loss) as of December 31, 2023 and December 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the twelve months ended December 31, 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 income (loss) in which the effects of fair value or cash flow hedges are recorded. $ 142 $ 212 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships Interest contracts Hedged items 871 Derivatives designated as hedging instruments (681) Gain or (loss) on cash flow hedging relationships Interest contracts Amount of (loss) gain reclassified from AOCI into income (48) 212 Amount of gain reclassified from AOCI into income - Included Component 276 Amount of (loss) reclassified from AOCI into income - Excluded Component $ (48) $ (64) Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income (Loss) The Amount of Gain or (Loss) Amount of Gain Recognized in Recognized in Location of Gain or (Loss) Income on Derivative Income Recognized in Income on Twelve Months Ended Twelve Months Ended (Dollars in thousands) Derivative December 31, 2023 December 31, 2022 Derivatives Not Designated as Hedging Instruments: Interest Rate Products Other income / (expense) $ (262) $ 516 Other Contracts Other income / (expense) (6) 5 Total $ (268) $ 521 Fee Income Fee income $ 652 $ 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 December 31, 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 December 31, 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 $ 19,833 $ $ 19,833 $ $ 17,590 $ 2,243 Offsetting of Derivative Liabilities as of December 31, 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 $ 20,633 $ $ 20,633 $ 20,633 $ $ *Cash collateral of $2,450 was paid but not presented as an offset above. 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 December 31, 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 $2.7 million. As of December 31, 2022, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $2.0 thousand. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $2.5 million against its obligations under these agreements as of December 31, 2023 and had no posted collateral at December 31, 2022. Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the agreement. The cash collateral is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the cash collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above. If the Company had breached any of these provisions it could have been required to settle its obligations under the agreements at the termination value.

Stock plans

Stock plans	12 Months Ended
Stock plans	Dec. 31, 2023
Stock plans
Stock plans	14. Stock plans: 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 December 31, 2023, 98,403 shares of the Company’s common stock were 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 2017 Plan awards are forfeited by the holder or canceled by the Company, the underlying shares would be available for re-grant to others under the 2023 Plan. The 2017 Plan and 2023 Plan authorize grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. In 2023, the Company awarded 5,206 shares of non-performance-based restricted stock and 18,222 performance-based restricted stock units under the 2023 Plan. In 2022, the Company awarded performance-based restricted stock units under the 2017 Plan. In 2023, 4,139 shares of non-performance-based and 12,652 shares of performance based restricted stock granted under the 2017 Plan vested and 12,524 of these shares were surrendered under the provisions of the 2017 Plan. In 2022, The non-performance-based restricted stock grants made in 2023, 2022 and 2021 vest equally over three years from the grant date. The performance-based restricted stock units vest The activity related to the 2017 and 2023 Plan for each of the years ended December 31, 2023, 2022 and 2021 was as follows: (Dollars in thousands) 2023 2022 2021 Nonvested, January 1 39,470 36,281 31,923 Granted shares 23,428 19,787 19,818 Vested shares 16,791 16,403 15,460 (Surrendered) Forfeited shares (12,524) 195 Nonvested, December 31 58,631 39,470 36,281 The Company expenses the fair value of all-share based compensation over the requisite service period commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. Compensation is recognized over the vesting period and adjusted based on the performance criteria. The Company classifies share-based compensation for employees within “salaries and employee benefits expense” on the Consolidated Statements of Income and Comprehensive Income. The Company recognized expense for awards granted under the 2017 and 2023 plan of $0.9 million in in 2021. As of December 31, 2023, the Company had

Employee benefit plans

Employee benefit plans	12 Months Ended
Employee benefit plans	Dec. 31, 2023
Employee benefit plans
Employee benefit plans	15. Employee benefit plans: The Company sponsors a separate ESOP and Retirement Profit Sharing 401(k) Plan. The Company also maintains SERPs and an employees’ pension plan, which is currently frozen. Under the ESOP, amounts voted by the Company’s Board of Directors are paid into the ESOP and each eligible participant is credited with an amount in proportion to their annual compensation or a fixed dollar amount. All contributions to the ESOP are invested in or will be invested primarily in Company stock. Distribution of a participant’s ESOP account occurs upon retirement, death or termination in accordance with the plan provisions. Under the Retirement Profit Sharing Plan, amounts approved by the Board of Directors have been paid into a fund and each participant was credited with an amount in proportion to their annual compensation. Upon retirement, death or termination, each participant is paid the total amount of their credits in the fund in one of a number of optional ways in accordance with the plan provisions. Eligible participants may elect deferrals of up to the maximum amounts permitted by law. The Company contributed $0.2 million and $0.3 million to the ESOP for 2022 and 2021. There was ESOP contribution in 2023. The Company contributed The Company established a SERP Plan to replace certain 401(k) plan benefits lost due to compensation limits imposed on qualified plans by federal tax law. The annual benefit is a maximum of 6 percent of the executive compensation in excess of Federal limits. The total liability associated with this plan was $180 thousand at December 31, 2023 and 2022, respectively. The expense associated with the plan was $19 thousand, $20 thousand and $19 thousand for 2023, 2022 and 2021 respectively. The Company has SERPs for the benefit of certain officers. At December 31, 2023 and 2022, other liabilities include $3.1 million and $2.8 million accrued under the plans. Compensation expense includes approximately $0.4 million, $0.4 million and $0.4 million relating to these SERPs for the years ended December 31, 2023, 2022 and 2021, respectively. Under the Employees’ Pension Plan, currently frozen, amounts computed on an actuarial basis were being paid by the Company into a trust fund. The plan provided for fixed benefits payable for life upon retirement at the age of 65, based on length of service and compensation levels as defined in the plan. As of June 22, 2008 no further benefits are being accrued in this plan. Plan assets of the trust fund are invested and administered by the Trust Department of the Company. Information related to the Employees’ Pension Plan at December 31, 2023 and 2022 is as follows: Pension Benefits (Dollars in thousands) 2023 2022 Change in benefit obligation: Benefit obligation, beginning $ 13,792 $ 18,066 Interest cost 655 456 Change in experience gain 2 26 Change in actuarial assumptions 306 (3,899) Benefits paid (910) (857) Benefit obligation, ending 13,845 13,792 Change in plan assets: Fair value of plan assets, beginning 16,106 19,257 Actual return on plan assets 2,413 (2,294) Employer contributions Benefits paid (910) (857) Fair value of plan assets, ending 17,609 16,106 Funded status at end of year $ 3,764 $ 2,314 The Company utilized the mortality scale within the mortality tables from MP 2021 to re-measure its pension plan at December 31, 2023 and 2022. Amounts recognized in the consolidated balance sheets at December 31, 2023 and 2022 are as follows: Pension Benefits (Dollars in thousands) 2023 2022 (Other Assets)/Other Liabilities $ (3,764) $ (2,314) Amounts recognized in the accumulated other comprehensive loss consist of: Net actuarial gain (4,370) (5,499) Deferred taxes 956 1,184 Net amount recognized $ (3,414) $ (4,315) The accumulated benefit obligation for the defined benefit pension plan was $13.8 million at December 31, 2023 and 2022. Components of net periodic pension income and other amounts recognized in other comprehensive income (loss) are as follows: (Dollars in thousands) Pension Benefits Twelve Months Ended December 31, 2023 2022 2021 Net periodic pension income: Interest cost $ 655 $ 456 $ 419 Expected return on plan assets (1,170) (1,407) (1,288) Amortization of unrecognized net loss 194 198 301 Net periodic pension income: (321) (753) (568) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss 655 456 419 Deferred tax (141) (96) (88) Total recognized in other comprehensive income (loss) 514 360 331 Total recognized in net period pension cost and other comprehensive income (loss) $ 193 $ (393) $ (237) Weighted-average assumptions used to determine benefit obligations and related expenses were as follows: Pension Benefits 2023 2022 2021 Discount rate: Obligation 4.73 % 4.93 % 2.59 % Expense 4.93 2.59 2.25 Expected long-term return on plan assets 7.50 % 7.50 % 7.50 % The expected long-term return on plan assets was determined using average historical returns of the Company’s plan assets. The Company’s pension plan weighted-average asset allocations at December 31, 2023 and 2022, by asset category are as follows: 2023 2022 Asset Category: Cash and cash equivalents 4.4 % 4.7 % Equity securities 63.3 60.3 Corporate bonds 18.1 19.5 U.S. government securities 14.2 15.5 100.0 % 100.0 % Fair value measurement of pension plan assets at December 31, 2023 and 2022 is as follows: December 31, 2023 Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 783 $ 783 $ $ Equity securities: U.S. large cap 9,482 9,482 International 1,671 1,671 Fixed income securities: U.S. Treasuries 343 343 U.S. government agencies 2,149 2,149 Corporate bonds 3,181 3,181 Total $ 17,609 $ 11,936 $ 5,673 $ December 31, 2022 Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 759 $ 759 $ $ Equity securities: U.S. large cap 7,365 7,365 International 2,338 2,338 Fixed income securities: U.S. Treasuries 511 511 U.S. government agencies 1,991 1,991 Corporate bonds 3,142 3,142 Total $ 16,106 $ 10,462 $ 5,644 $ The Company investment policies and strategies with respect to the pension plan include: (i) the Trust and Investment Division’s equity philosophy is large-cap core with a value bias (we invest in individual high-grade common stocks that are selected from our approved list); (ii) diversification is maintained by having no more than 20 percent in any industry sector and no individual equity representing more than 10 percent of the portfolio; and (iii) the fixed income style is conservative but also responsive to the various needs of our individual clients. Fixed income securities consist of U.S. government agencies or corporate bonds rated “A” or better. The Company targets the following allocation percentages: (i) cash equivalents 10 percent; (ii) fixed income 40 percent; and (iii) equities 50 percent. There is no Company stock included in equity securities at December 31, 2023 or 2022. The Company has not determined the amount of the expected contribution to the Employees’ Pension Plan for 2024. The following benefit payments are expected to be paid in the next five years and in the aggregate for the five years thereafter: (Dollars in thousands) Pension Benefits 2024 $ 966 2025 999 2026 1,022 2027 1,030 2028 1,024 Thereafter 4,946

Income taxes

Income taxes	12 Months Ended
Income taxes	Dec. 31, 2023
Income taxes
Income taxes	16. Income taxes: The current and deferred amounts of the provision for income taxes expense for each of the years ended December 31, 2023, 2022 and 2021 are summarized as follows: (Dollars in thousands) 2023 2022 2021 Current $ 3,853 $ 6,665 $ 9,548 Deferred 1,268 611 450 Total income tax expense $ 5,121 $ 7,276 $ 9,998 The components of the net deferred tax asset at December 31, 2023 and 2022 are summarized as follows: (Dollars in thousands) 2023 2022 Deferred tax assets: Allowance for loan losses $ 4,789 $ 5,916 Lease liability 2,397 1,787 Defined benefit plan 1,635 1,798 Deferred compensation 694 860 Deferred loan fees and costs 59 Investment securities available for sale 11,270 14,266 Other 339 196 Total 21,124 24,882 Deferred tax liabilities: Lease right-of-use assets 2,313 1,718 Premises and equipment, net 2,109 1,692 Merger related accounting 474 472 Deferred loan costs 92 Accrued compensation 1,912 1,872 Other 454 389 Total 7,354 6,143 Net deferred tax asset $ 13,770 $ 18,739 A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 21.0 percent for the years ended December 31, 2023, December 31, 2022 and December 31, 2021 is summarized as follows: 2023 2022 2021 (Dollars in thousands, except percents) Amount % Amount % Amount % Provision for income tax at statutory rate $ 6,825 21.00 % $ 9,527 21.00 % $ 11,239 21.00 % State tax, net of federal benefit 397 1.22 216 0.63 475 0.89 Tax exempt interest (1,057) (3.25) (1,400) (3.09) (1,194) (2.23) Bank owned life insurance income (221) (0.68) (205) (0.45) (119) (0.22) Residential housing program tax credits (755) (2.32) (911) (2.01) (1,091) (2.04) Nondeductible transaction costs 179 0.55 Other, net (247) (0.76) 49 (0.04) 688 1.29 Total $ 5,121 15.76 % $ 7,276 16.04 % $ 9,998 18.69 % The Company computes deferred income taxes under the asset and liability method. Deferred incomes taxes are recognized for tax consequences of “temporary differences” by applying enacted statutory tax rates to differences between the financial reporting and the tax basis of existing assets and liabilities. A deferred tax liability is recognized for all temporary differences that result in future taxable income. A deferred tax asset is recognized for all temporary differences that will result in future tax deductions subject to reduction of the asset by a valuation allowance. The Company follows FASB ASC Topic 740 “ Income Taxes ,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return. ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes. The Company did not recognize or accrue any interest or penalties related to income taxes during the years ended December 31, 2023, 2022 and 2021. The Company does not have an accrual for uncertain tax positions as of December 31, 2023, 2022 or 2021, as deductions take or benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Tax returns for all years 2020 and thereafter are subject to examination by tax authorities.

Parent Company financial statem

Parent Company financial statements	12 Months Ended
Parent Company financial statements	Dec. 31, 2023
Parent Company financial statements
Parent Company financial statements	17. Parent Company financial statements: CONDENSED BALANCE SHEETS (Dollars in thousands) 2023 2022 Assets: Cash and cash equivalents $ 188 $ 359 Equity securities 98 110 Investment in bank subsidiary 372,348 346,734 Other assets 936 1,295 Total assets $ 373,570 $ 348,498 Liabilities and Stockholders’ Equity: Subordinated debt $ 33,000 $ 33,000 Accrued interest payable 148 148 Stockholders’ equity 340,422 315,350 Total liabilities and stockholders’ equity $ 373,570 $ 348,498 CONDENSED STATEMENTS OF INCOME (Dollars in thousands) 2023 2022 2021 Income: Dividends from subsidiaries $ 20,158 $ 11,325 $ 17,593 Other income 4 3 4 Unrealized holding (losses) gains on equity securities (11) (31) 2 Total income 20,151 11,297 17,599 Expense: Acquisition related expenses 1,580 Interest expense on subordinated debt 1,774 1,774 1,774 Other expenses 1,538 1,188 222 Total expenses 4,892 2,962 1,996 Income before taxes and undistributed income 15,259 8,335 15,603 Income tax benefit (857) (624) (410) Income before undistributed income of subsidiaries 16,116 8,959 16,013 Equity in undistributed net income of subsidiaries 11,264 29,131 27,506 Net income $ 27,380 $ 38,090 $ 43,519 condensed Statements of Cash Flows (Dollars in thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 27,380 $ 38,090 $ 43,519 Adjustments: Net losses (gains) on investment securities 11 31 (2) Undistributed net income of subsidiaries (11,264) (29,131) (27,506) Decrease (increase) in other assets 359 (591) (429) Decrease in other liabilities (40) Stock based compensation 888 534 546 Net cash provided by operating activities 17,374 8,893 16,128 Cash flows from financing activities: Retirement of common stock (5,886) (1,253) (2,361) Cash dividends paid (11,659) (11,325) (10,792) Net cash used in financing activities (17,545) (12,578) (13,153) (Decrease) increase in cash and cash equivalents (171) (3,685) 2,975 Cash and cash equivalents at beginning of year 359 4,044 1,069 Cash and cash equivalents at end of year $ 188 $ 359 $ 4,044

Regulatory matters

Regulatory matters	12 Months Ended
Regulatory matters	Dec. 31, 2023
Regulatory matters
Regulatory matters	18. Regulatory matters: Dividends are paid by the Parent Company from its assets, which are mainly provided by dividends from Peoples Bank. Under the Pennsylvania Business Corporation Law of 1988, as amended, the Company may not pay a dividend if, after payment, either the Company could not pay its debts as they become due in the usual course of business, or the Company’s total assets would be less than its total liabilities. The determination of total assets and liabilities may be based upon: (i) financial statements prepared on the basis of GAAP; (ii) financial statements that are prepared on the basis of other accounting practices and principles that are reasonable under the circumstances; or (iii) a fair valuation or other method that is reasonable under the circumstances. In addition, the Federal Reserve Board has the power to prohibit dividends by bank holding companies if their actions constitute unsafe or unsound practices. The Federal Reserve Board has issued a policy statement on the payment of cash dividends by bank holding companies, which expresses the Federal Reserve Board’s view that a bank holding company should pay cash dividends only to the extent that the company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality and overall financial condition. The Federal Reserve Board also indicated that it would be inappropriate for a bank holding company experiencing serious financial problems to borrow funds to pay dividends. Under the prompt corrective action regulations, the Federal Reserve Board may prohibit a bank holding company from paying any dividends if the holding company’s bank subsidiary is classified as “undercapitalized.” In addition, under the Pennsylvania Banking Code of 1965, as amended, Peoples Bank may only declare and pay dividends out of accumulated net earnings, or accumulated net earnings acquired as a result of a merger within seven years. Further, Peoples Bank may not declare or pay any dividend unless Peoples Bank’s surplus would not be reduced by the payment of the dividend below 100 percent of our capital stock. Pennsylvania law requires that each year Peoples Bank set aside as surplus, a sum equal to not less than 10 percent of its net earnings if surplus does not equal at least 100 percent of our capital stock. Under federal law and FDIC regulations, an insured bank may not pay dividends if doing so would make it undercapitalized within the meaning of the prompt corrective action law or if in default of its deposit insurance fund assessment. Although subject to the aforementioned regulatory restrictions, the Company’s consolidated retained earnings at December 31, 2023 and 2022 were not restricted under any borrowing agreement as to payment of dividends or reacquisition of common stock. The Company has paid cash dividends since its formation as a bank holding company in 1986. It is the present intention of the Board of Directors to continue this dividend payment policy, however, further dividends must necessarily depend upon earnings, financial condition, appropriate legal restrictions and other factors relevant at the time the Board of Directors considers payment of dividends. The amount of funds available for transfer from Peoples Bank to the Company in the form of loans and other extensions of credit is also limited. Under Federal regulation, transfers to any one affiliate are limited to 10.0 percent of capital and surplus. At December 31, 2023, the maximum amount available for transfer from Peoples Bank to the Company in the form of loans amounted to $37.5 million. At December 31, 2023 and 2022, there were no loans outstanding, nor were any advances made during 2023 and 2022. The Company and Peoples Bank are subject to certain regulatory capital requirements administered by the federal banking agencies, which are defined in Section 38 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Peoples Bank’s consolidated financial statements. In the event an institution is deemed to be undercapitalized by such standards, FDICIA prescribes an increasing amount of regulatory intervention, including the required institution of a capital restoration plan and restrictions on the growth of assets, branches or lines of business. Further restrictions are applied to the significantly or critically undercapitalized institutions including restrictions on interest payable on accounts, dismissal of management and appointment of a receiver. For well capitalized institutions, FDICIA provides authority for regulatory intervention when the institution is deemed to be engaging in unsafe and unsound practices or receives a less than satisfactory examination report rating. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Peoples Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Risk-based capital rules require that banks and holding companies maintain a “capital conservation buffer” of 250 basis points in excess of the “minimum capital ratio.” The minimum capital ratio is equal to the prompt corrective action adequately capitalized threshold ratio. Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. Peoples Bank met the capital requirement for the “well capitalized” category under the regulatory framework for prompt corrective action at December 31, 2023. To be categorized as well capitalized, Peoples Bank must maintain certain minimum Tier I risk-based, total risk-based and Tier I Leverage ratios as set forth in the following tables. The Tier I Leverage ratio is defined as Tier I capital to total average assets less intangible assets. Regulators may assign Peoples Bank to a lower capitalization category based on factors other than capital. The Company and Bank are required to meet a common equity Tier 1 capital to risk-weighted assets ratio of at least 7.00% (a minimum of 4.50% plus a capital conservation buffer of 2.50%), a Tier 1 capital to risk-weighted assets ratio of at least 8.50% (a minimum of 6.00% plus a capital conservation buffer of 2.50%), a total capital to risk-weighted assets ratio of at least 10.50% (a minimum of 8.00% plus a capital conservation buffer of 2.50%), and a Tier 1 leverage ratio of at least 4.00%. Management believes that, as of December 31, 2023, the Company and the Bank met all capital adequacy requirements to which it is subject. The Company and Peoples Bank’s actual capital ratios at December 31, 2023 and 2022, and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions are as follows: December 31, 2023 Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands, except percents) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Company $ 321,403 12.10 % $ 119,577 4.50 % NA NA Peoples Bank 353,330 13.30 119,561 4.50 $ 172,699 6.50 % Tier 1 capital to risk-weighted assets: Company 321,403 12.10 159,436 6.00 NA NA Peoples Bank 353,330 13.30 159,414 6.00 212,552 8.00 Total capital to risk-weighted assets: Company 376,341 14.16 212,581 8.00 NA NA Peoples Bank 375,268 14.12 212,552 8.00 265,690 10.00 Tier 1 capital to average assets: Company 321,403 8.50 151,252 4.00 NA NA Peoples Bank 353,330 9.34 % 151,274 4.00 % 189,093 5.00 % NA = not applicable December 31, 2022 Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands, except percents) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Company $ 308,211 11.13 % $ 124,569 4.50 % NA NA Peoples Bank 339,596 12.27 124,563 4.50 $ 179,924 6.50 % Tier 1 capital to risk-weighted assets: Company 308,211 11.13 166,093 6.00 NA NA Peoples Bank 339,596 12.27 166,083 6.00 221,444 8.00 Total capital to risk-weighted assets: Company 335,683 12.13 221,457 8.00 NA NA Peoples Bank 367,068 13.26 221,444 8.00 276,806 10.00 Tier 1 capital to average assets: Company 308,211 9.03 136,559 4.00 NA NA Peoples Bank 339,596 9.69 140,167 4.00 175,209 5.00 NA = not applicable

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	12 Months Ended
Accumulated Other Comprehensive Loss	Dec. 31, 2023
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	19. Accumulated Other Comprehensive Loss: The components of accumulated other comprehensive loss included in stockholders’ equity at December 31, 2023 and 2022 are as follows: (Dollars in thousands) December 31, 2023 December 31, 2022 Net unrealized loss on investment securities available for sale $ (51,527) $ (66,250) Income tax benefit (11,270) (14,266) Net of income taxes (40,257) (51,984) Benefit plan adjustments (4,370) (5,499) Income tax benefit (956) (1,184) Net of income taxes (3,414) (4,315) Derivative adjustments (871) (47) Income tax benefit (191) (10) Net of income taxes (680) (37) Accumulated other comprehensive loss $ (44,351) $ (56,336) Other comprehensive income (loss) and related tax effects for the years ended December 31, 2023, 2022 and 2021 are as follows: (Dollars in thousands) 2023 2022 2021 Unrealized gain (loss) on investment securities available for sale $ 14,804 $ (66,435) $ (11,487) Net (gain) loss on the sale of investment securities available for sale (1) (81) 1,976 Other comprehensive income (loss) on available for sale debt securities 14,723 (64,459) (11,487) Benefit plans: Amortization of actuarial loss (2) 194 198 301 Actuarial gain 935 172 1,808 Net change in benefit plan liabilities 1,129 370 2,109 Net change in derivatives (824) (728) (322) Other comprehensive income (loss) before taxes 15,028 (64,817) (9,700) Income tax expense (benefit) 3,043 (13,995) (2,037) Other comprehensive income (loss) $ 11,985 $ (50,822) $ (7,663) (1) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in gains on sale of investment securities on the consolidated statements of income and comprehensive income. (2) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in the computation of net periodic pension expense. Refer to Note 15 included in these consolidated financial statements.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	12 Months Ended
Summary of significant accounting policies (Policies)	Dec. 31, 2023
Summary of significant accounting policies
Nature of operations	Nature of operations: The accompanying Consolidated Financial Statements include the accounts of Peoples Financial Services Corp. (the “Parent Company”) and its wholly-owned subsidiary, Peoples Security Bank and Trust Company ( “Peoples Bank” or when consolidated with the Parent Company, the “Company” or “Peoples”). All significant intercompany balances and transactions have been eliminated in consolidation. Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Bank. The Company services its retail and commercial customers through Peoples Bank is a state-chartered bank and trust company under the jurisdiction of the Pennsylvania Department of Banking and the FDIC. Peoples Bank’s primary product is loans to small and medium-sized businesses. Other lending products include one-to-four family residential mortgages and consumer loans. Peoples Bank primarily funds its loans by offering deposits to commercial enterprises and individuals. Deposit product offerings include checking accounts, savings accounts, money market accounts and certificates of deposits. The Company faces competition primarily from commercial banks, thrift institutions and credit unions within its market, many of which are larger in terms of assets and capital. In addition, mutual funds and security brokers compete for various types of deposits, and consumer, mortgage, leasing and insurance companies compete for various types of loans and leases. Principal methods of competing for banking and permitted nonbanking services include price, nature of product, quality of service and convenience of location. Peoples Financial Services Corp. and Peoples Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations.
Basis of presentation	Basis of presentation: The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed parent company only financial information regarding the Parent Company. Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations.
Subsequent Events	Subsequent Events: The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2023, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.
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 Peoples Bank, with Peoples 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. 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 Annual Report on Form 10-K. Pending regulatory and shareholder approvals, the Company expects the merger to be consummated in the third quarter 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 ACL 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 credit 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 annual consolidated financial statements for the year ended December 31, 2023. Therefore, an amendment to the previously filed quarterly report on Form 10-Q as of March 31, 2023 and each subsequent quarter 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 ACL is reflected in the consolidated financial statements as of and for the twelve months ended December 31, 2023.
Estimates	Estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the ACL, fair value of financial instruments, the valuation of deferred tax assets, the valuation of derivative instruments and impairment of goodwill. Actual results could differ from those estimates.
Investment securities	Investment securities: Investment securities are classified and accounted for as either held to maturity or available for sale securities based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held to maturity when management has the positive intent and ability to hold such securities to maturity. Held to maturity securities are stated at amortized cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available for sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Available for sale securities are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in other comprehensive income (loss) in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value with unrealized gains and losses reported in earnings. Estimated fair values for investment securities are based on quoted market prices from a national pricing service. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums on callable debt securities are amortized to the earliest call date from the maturity date. Premiums on non-callable securities are amortized and discounts are accreted using the interest method over the expected life of the security. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred.
Transfers of Financial Assets	Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Loans held for sale	Loans held for sale: Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan.
Loans, net	Loans, net: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income at the time when they are paid by customer. The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial, commercial real estate, municipal and other related tax free loans. Retail loans consist of residential real estate and other consumer loans. The Company makes commercial loans for real estate development and other business purposes to its customers. The Company’s credit policies establish advance rates against the different forms of collateral that can be pledged against various commercial loans. Typically, the majority of loans will be underwritten to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. Generally, assets financed through commercial loans are used for the operations of the business. Repayment for these types of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include construction, mini-perm, or longer term loans financing commercial properties. Repayment of these loans is generally dependent upon either the ongoing business cash flow from an owner occupied property or the lease/rental income or sale of a non-owner occupied property. Commercial real estate loans typically require a loan to value of not greater than Loans secured by commercial real estate generally have larger balances and involve a greater degree of risk than one-to-four family residential mortgage loans and consumer loans. Of primary concern in commercial real estate lending is the borrower’s and any guarantor’s creditworthiness and the feasibility and cash flow potential of the financed project. Additional considerations include: location, market and geographic concentration risks, loan to value, strength of guarantors and quality of tenants. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment of such loans may be subject to a higher level of risk than residential real estate loans, which could be caused by unfavorable conditions in the real estate market or the economy. To effectively monitor loans on income properties, the Company requires borrowers and loan guarantors, if any, to provide annual financial statements on commercial real estate loans and rent rolls where applicable. In reaching a decision on whether to make a commercial real estate loan, the Company considers and reviews a cash flow analysis of the borrower and guarantor, when applicable. In addition, the Company evaluates business cash flows, if applicable, net operating income of the property, the borrower’s expertise, credit history and the value of the underlying property. The Company manages commercial real estate credit risk by prudent underwriting with conservative debt service coverage and loan-to-value ratios at origination; lending to seasoned real estate owners/managers, frequently with personal guarantees of repayment; using reasonable appraisal practices; cross-collateralizing loans to one borrower when deemed prudent; and limiting the amount and types of construction lending. An environmental report is obtained when the possibility exists that hazardous materials may have existed on the site, or the site may have been impacted by adjoining properties that handled hazardous materials. Commercial loans are generally made on the basis of a business entity or individual borrower’s ability to make repayment from business cash flows or individual borrowers’ employment and other income. Commercial business loans tend to have a slightly higher risk than commercial real estate loans because collateral usually consists of business assets versus real estate. Further, any collateral securing such loans may depreciate over time and could be difficult to appraise and liquidate. As a result, repayment of commercial business loans may depend substantially on the success of the business itself. Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower, loan to value ratio and term. Residential mortgages may have amortizations up to 30 years. Consumer loans include installment loans, car loans, and overdraft lines of credit. These loans are both secured and unsecured. Consumer loans may entail greater risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured. Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for the outstanding loan and a small remaining deficiency often does not warrant further substantial collection efforts against the borrower. Consumer loan collections depend on the borrower’s continuing financial stability, and therefore are likely to be adversely affected by various factors, including job loss, divorce, illness or personal bankruptcy. Furthermore, the application of various federal and state laws, including federal and state insolvency laws, may limit the amount that can be recovered on such loans.
Off-balance sheet financial instruments	Off-balance sheet financial instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as interest and fees on loans and are included in interest income when paid. The Company records an ACL for off-balance sheet financial instruments, if deemed necessary, separately as a liability.
Nonperforming assets	Nonperforming assets: Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans and accruing loans past due 90 days or more. Past due status is based on contractual terms of the loan. Generally, a loan is classified as nonaccrual when it is determined that the collection of all or a portion of interest or principal is doubtful or when a default of interest or principal has existed for 90 days or more, unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual, interest accruals discontinue and uncollected accrued interest is reversed against income in the current period. Interest collections after a loan has been placed on nonaccrual status are credited to a suspense account until either the loan is returned to performing status or charged-off. The interest accumulated in the suspense account is credited to income over the remaining life of the loan using the effective yield method if the nonaccrual loan is returned to performing status. However, if the nonaccrual loan is charged-off, the accumulated interest is applied as a reduction to principal at the time the loan is charged-off. A nonaccrual loan is returned to performing status when the loan is current as to principal and interest and has performed according to the contractual terms for a minimum of six months. 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. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The modification categories offered can generally fall within the following categories: ● Rate Modification — A modification in which the interest rate is changed to a below market rate. ● Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed. ● Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time. ● Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. ● Combination Modification — Any other type of modification, including the use of multiple categories above. The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: ● Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. ● Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. ● Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. ● Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. ● Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the ACL. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense.
Allowance for credit losses	Allowance for credit losses: The ACL 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 held to maturity 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 ACL for loans is considered a critical accounting estimate 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 ACL. The ACL related to loans receivable and held to maturity debt securities 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 noninterest expense in the consolidated statements of income and comprehensive income (loss). ACL on Loans Receivable Effective January 1, 2023, the Company adopted the provisions of ASC 326 and modified its accounting policy for the ACL on loans. The ACL on loans is deducted from the amortized cost basis of the loan to present the net amount expected to be collected. Expected credit 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. Segments are based primarily on regulatory reporting codes as the loans within each segment share similar risk characteristics and there is sufficient historical peer loss data to supplement the Company’s data used in the model. The segments include residential real estate, consumer, commercial and industrial, commercial real estate and municipal. The Company has identified the following pools subject to an estimate of credit loss: (1) 1-4 Family Construction; (2) Other Construction; (3) Farmland; (4) Revolving Secured by 1-4 Family; (5) Residential Secured by First Liens; (6) Residential Secured by Junior Liens; (7) Multifamily; (8) CRE Owner Occupied; (9) CRE Non-Owner Occupied; (10) Agriculture; (11) C&I; (12) Consumer; and (13) 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 ACL 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 ACL 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 ACL 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. Qualitative 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. Qualitative loss factors are applied to each portfolio segment with the amounts judgmentally determined by the relative risk to the adverse stress credit loss scenarios using regulatory stress testing scenarios. 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 ACL. 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 ACL 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. As of December 31, 2023 there were no acquired loans included in the ACL. ACL on Off-Balance Sheet Commitments The Company is required to include unfunded commitments for not unconditionally cancellable 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 ACL on unfunded loan commitments is included in other liabilities on the consolidated balance sheets and the related credit expense is recorded in other noninterest expense in the consolidated statements of income and comprehensive income (loss). ACL 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. ACL 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 ACL 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 ACL is recognized in other comprehensive income (loss), 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 $10.7 million at December 31, 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 $1.7 million and $193 thousand, respectively, at December 31, 2023 and is excluded from the estimate of credit losses, as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner.
Revenue from Contracts with Customers	Revenue from Contracts with Customers: The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. The following is a discussion of revenues within the scope of the guidance: ● Service charges, fees, commissions and other . Service charges, fees and commissions on deposit accounts include fees for banking services provided, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for retail accounts or contractual agreements for commercial accounts. The Company’s deposit services also include our ATM and debit card interchange revenue that is presented gross of the associated costs. Interchange revenue is generated by the Company’s deposit customers’ usage and volume of activity. Interchange rates are not controlled by the Company, which effectively acts as processor that collects and remits payments associated with customer debit card transactions. ● Commission and fees on fiduciary activities. Commission and fees on fiduciary activities includes fees and commissions from investment management, administrative and advisory services primarily for individuals, and to a lesser extent, partnerships and corporations. Revenue is recognized on an accrual basis at the time the services are performed and when the Company has a right to invoice and are based on either the market value of the assets managed or the services provided. ● Wealth management income. Wealth management income includes fees and commissions charged when the Company arranges for another party to transfer brokerage services to a customer. The fees and commissions under this agent relationship are based upon stated fee schedules based upon the type of transaction, volume, and value of the services provided. ● Merchant services income . Merchant services revenue is derived from a third party vendor that processes credit card transactions on behalf of the Company’s merchant customers. Merchant services revenue is primarily comprised of residual fee income based on the referred merchant’s processing volumes and/or margin.
Premises, equipment and lease commitments	Premises, equipment and lease commitments: Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, to the expected terms of the leases, if shorter: Premises and leasehold improvements 7 – 40 years Furniture, fixtures and equipment 3 – 10 years A right-of-use asset and related lease liability is recognized on the Consolidated Balance Sheets for operating leases Peoples Bank has entered to lease certain office facilities. These amounts are reported as components of premises and equipment and other liabilities. Short-term operating leases, which are leases with an original term of 12 months or less and do not have a purchase option that is likely to be exercised, are not recognized as part of the right-of-use asset or lease liability.
Goodwill and other intangible assets, net	Goodwill and other intangible assets, net: The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over their estimated useful lives of up to ten years. Goodwill and other intangible assets are tested for impairment annually at December 31st or when circumstances arise indicating impairment may have occurred. In assessing impairment, the Company has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, the Company determines it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then the Company would not be required to perform a quantitative impairment test. At December 31, 2023, we completed a qualitative goodwill impairment test to determine if it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the Company is less than its carrying value, including goodwill, as described by the GAAP methodology. The Company determined a qualitative test would be performed based on the Company's market capitalization being higher than the Company's current book value. Additionally, the Company used an average control premium associated with acquisitions announced during the last three years and multiplied the average control premium by its market capitalization which allowed management to compare to the Company's current book value to determine if an adjustment to goodwill is warranted. Based on this analysis, we concluded it is more likely than not that the fair value of the Company, as of December 31, 2023, is higher than its carrying value, and, therefore, goodwill is not considered impaired and no further testing is required. The Company did
Mortgage servicing rights	Mortgage servicing rights: Mortgage servicing rights are recognized as a separate asset upon the sale and servicing of mortgage loans by the Company. The Company calculates a mortgage servicing right by allocating the total costs incurred between the loan sold and the servicing right, based on their relative fair values at the date of the sale. Mortgage servicing rights are included in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. In addition, mortgage servicing rights are evaluated for impairment at each reporting date based on the fair value of those rights. For purposes of measuring impairment, the rights are stratified by loan type, term and interest rate. The amount of impairment recognized, through a valuation allowance, is the amount by which the mortgage servicing rights for a stratum exceed their fair value.
Restricted equity securities	Restricted equity securities: As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Company is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be redeemed by the FHLB or transferred to another member institution, and all redemptions of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. The carrying value of restricted stock is included in other assets.
Bank owned life insurance	Bank owned life insurance: The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance on certain employees or directors. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income from increases in cash surrender value of the policies is included in noninterest income. The policies can be liquidated, if necessary, with associated tax costs. However, the Company intends to hold these policies and, accordingly, the Company has not provided for income taxes on the earnings from the increase in cash surrender value.
Pension and post-retirement benefit plans	Pension and post-retirement benefit plans: The Company sponsors a separate Employee Stock Ownership Plan (“ESOP”) and Retirement Profit Sharing 401(k) Plan and maintains Supplemental Executive Retirement Plans (“SERPs”) and an employee pension plan, which is currently frozen. The Company also provides post-retirement benefit plans other than pensions, consisting principally of life insurance benefits, to eligible retirees. The liabilities and annual income or expense of the Company’s pension and other post-retirement benefit plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of asset return, based on the market-related value of assets. The fair values of plan assets are determined based on prevailing market prices or estimated fair value for investments with no available quoted prices.
Cash and cash equivalents	Cash and cash equivalents: Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and borrowings with original maturities fewer than 90 days.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities: The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets and borrowings. The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company has elected to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.
Fair value of financial instruments	Fair value of financial instruments: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements. Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument. Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include: ● Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ● Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
Investment securities	Investment securities: The fair values of marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model and quoted market prices.
Individually evaluated loans	Individually evaluated loans:
Interest rate swaps and floors	Interest rate swaps and floors:
Income taxes	Income taxes: Deferred income taxes are provided on the balance sheet method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the effective date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood of being realized on examination of more than 50 percent. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for any year in the three-year period ended December 31, 2023. As applicable, the Company recognizes accrued interest and penalties assessed as a result of a taxing authority examination through income tax expense. The Company files consolidated income tax returns in the United States of America and various state jurisdictions. With limited exception, the Company is no longer subject to federal and state income tax examinations by taxing authorities for years before 2020.
Other comprehensive income (loss)	Other comprehensive income (loss): The components of other comprehensive income (loss) and their related tax effects are reported in the consolidated statements of income and comprehensive income (loss). The accumulated other comprehensive loss included in the consolidated balance sheets relates to net unrealized gains and losses on investment securities available for sale, the unrealized losses and gains on derivatives fair value and the unfunded benefit plan amounts which include prior service costs and unrealized net losses.
Earnings per share	Earnings per share: Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to awards of restricted stock units, and are determined using the treasury stock method. (Dollars in thousands, except per share data) 2023 2022 2021 For the Twelve Months Ended December 31, Basic Diluted Basic Diluted Basic Diluted Net income $ 27,380 $ 27,380 $ 38,090 $ 38,090 $ 43,519 $ 43,519 Average common shares outstanding 7,107,908 7,151,471 7,168,092 7,211,643 7,196,160 7,235,303 Earnings per share $ 3.85 $ 3.83 $ 5.31 $ 5.28 $ 6.05 $ 6.02
Stock-based compensation	Stock-based compensation: The Company recognizes all share-based payments to employees in the consolidated statements of income and comprehensive income (loss) based on their fair values. The fair value of such equity instruments is recognized as an expense in the consolidated financial statements as services are performed. The Company has granted restricted stock awards and units to employees at a price equal to the fair value of the shares underlying the awards at the date of grant. The fair value of restricted stock awards and units are equivalent to the fair value on the date of grant and is amortized over the vesting period.
Subordinated debt	Subordinated debt: The subordinated notes are recorded at par with related debt issuance costs reported as a direct reduction from the carrying amount. Issuance costs are amortized over the remaining maturity of the notes and reflected in interest expense.
Recent accounting standards and Recently Issued But Not Yet Effective Accounting Pronouncements	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 ACL by $3.0 million, $3.3 million of this was related to loans offset in part by an increase in the ACL related to unfunded loan commitments. There was no ACL related to HTM debt securities at adoption. Upon adoption the Company recorded a cumulative effect adjustment that increased stockholders’ equity by $2.4 million, net of tax. Recently Issued But Not Yet Effective Accounting Pronouncements 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. 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 the Company’s consolidated financial statements. ASU 2023-02 “ Investments - Equity Method and Joint Ventures ASU 2023-05 “ Business Combinations - Joint Venture Formations ASU 2023-06 “ Disclosure Improvements ” (“ASU 2023-06”) amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). ASU 2023-06 was issued in response to the SEC’s initiative to update and simplify disclosure requirements. For reporting entities subject to the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entities. ASU 2023-07 “ Improvements to Reportable Segment Disclosures ” addresses disclosure requirements regarding significant segment expenses in order that investors may better understand an entity’s overall performance and assess potential future cash flows. ASU 2023-07 is effective January 1, 2024 and is not expected to have a significant impact on the Company’s consolidated financial statements. ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures ” requires public business entities to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate for federal, state and foreign taxes as well as taxes paid. It also requires greater detail in the rate reconciliation of items which exceed 5 percent of pretax income. ASU 2023-09 is effective January 1, 2025 and is not expected to have a significant impact on the Company’s consolidated financial statements

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	12 Months Ended
Summary of significant accounting policies (Tables)	Dec. 31, 2023
Summary of significant accounting policies
Schedule of estimated useful life of related assets	Premises and leasehold improvements 7 – 40 years Furniture, fixtures and equipment 3 – 10 years
Schedule of earnings per share	(Dollars in thousands, except per share data) 2023 2022 2021 For the Twelve Months Ended December 31, Basic Diluted Basic Diluted Basic Diluted Net income $ 27,380 $ 27,380 $ 38,090 $ 38,090 $ 43,519 $ 43,519 Average common shares outstanding 7,107,908 7,151,471 7,168,092 7,211,643 7,196,160 7,235,303 Earnings per share $ 3.85 $ 3.83 $ 5.31 $ 5.28 $ 6.05 $ 6.02

Investment securities (Tables)

Investment securities (Tables)	12 Months Ended
Investment securities (Tables)	Dec. 31, 2023
Investment securities
Schedule of amortized cost and fair value of investment securities aggregated by investment category	December 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Available for sale: U.S. Treasury securities $ 197,920 $ $ 13,863 $ 184,057 U.S. government-sponsored enterprises 2,539 387 2,152 State and municipals: Taxable 67,831 10,731 57,100 Tax-exempt 75,742 8,618 67,124 Residential mortgage-backed securities: U.S. government agencies 758 34 724 U.S. government-sponsored enterprises 89,935 17,264 72,671 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 11,729 360 11,369 Corporate debt securities 4,000 270 3,730 Total $ 450,454 $ $ 51,527 $ 398,927 Held to maturity: Tax-exempt state and municipals $ 11,201 $ 1 $ 660 $ 10,542 Residential mortgage-backed securities: U.S. government agencies 15,400 2,653 12,747 U.S. government-sponsored enterprises 58,250 9,841 48,409 Total $ 84,851 $ 1 $ 13,154 $ 71,698 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
Summary of unrealized and realized gains and losses	(Dollars in thousands) 2023 2022 2021 Net (loss) gain recognized during the period on equity securities $ (11) $ (31) $ 2 Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (11) $ (31) $ 2
Schedule of maturity distribution	(Dollars in thousands) 2023 2022 2021 Net (loss) gain recognized during the period on equity securities $ (11) $ (31) $ 2 Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (11) $ (31) $ 2 The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available for sale at December 31, 2023, is summarized as follows: Amortized Fair (Dollars in thousands) Cost Value Within one year $ 22,594 $ 21,898 After one but within five years 192,724 178,449 After five but within ten years 53,280 46,627 After ten years 76,895 65,037 345,493 312,011 Mortgage-backed and other amortizing securities 104,961 86,916 Total $ 450,454 $ 398,927 The maturity distribution of the amortized cost and fair value, of debt securities classified as held to maturity at December 31, 2023, is summarized as follows: Amortized Fair (Dollars in thousands) Cost Value After one but within five years $ 569 $ 528 After five but within ten years 10,632 10,014 11,201 10,542 Mortgage-backed securities 73,650 61,156 Total $ 84,851 $ 71,698
Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position	December 31, 2023 Less than Twelve Months Total Total # Unrealized Total # Unrealized Total # Unrealized (Dollars in thousands) Position Fair Value Losses Position Fair Value Losses Position Fair Value Losses Securities Held to Maturity State and municipals: Tax-exempt 2 $ 1,438 $ 36 10 $ 6,209 $ 624 12 $ 7,647 $ 660 Residential mortgage-backed securities: U.S. government agencies 4 12,747 2,653 4 12,747 2,653 U.S. government-sponsored enterprises 8 48,409 9,841 8 48,409 9,841 Total 2 $ 1,438 $ 36 22 $ 67,365 $ 13,118 24 $ 68,803 $ 13,154 Securities Available for Sale U.S. Treasury securities 43 $ 184,057 $ 13,863 43 $ 184,057 $ 13,863 U.S. government-sponsored enterprises 2 2,152 387 2 2,152 387 State and municipals: Taxable 1 $ 995 $ 6 65 56,105 10,725 66 57,100 10,731 Tax-exempt 2 575 5 93 66,393 8,613 95 66,968 8,618 Residential mortgage-backed securities: U.S. government agencies 3 724 34 3 724 34 U.S. government-sponsored enterprises 32 72,671 17,264 32 72,671 17,264 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 4 11,369 360 4 11,369 360 Corporate debt securities 6 3,730 270 6 3,730 270 Total 3 $ 1,570 $ 11 248 $ 397,201 $ 51,516 251 $ 398,771 $ 51,527 December 31, 2022 Less than Twelve Months Total Total # Unrealized Total # Unrealized Total # Unrealized (Dollars in thousands) Position Fair Value Losses Position Fair Value Losses Position Fair Value Losses Securities Held to Maturity State and municipals: Tax-exempt 3 $ 3,150 $ 29 10 $ 2,906 $ 783 13 $ 6,056 $ 812 Residential mortgage-backed securities: U.S. government agencies 2 5 3 14,283 3,016 5 14,288 3,016 U.S. government-sponsored enterprises 1 12 8 51,866 10,760 9 51,878 10,760 Total 6 $ 3,167 $ 29 21 $ 69,055 $ 14,559 27 $ 72,222 $ 14,588 Securities Available for Sale 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 36 27,823 1,661 74 56,758 9,828 110 84,581 11,489 Residential mortgage-backed securities: U.S. government agencies 3 899 39 1 43 1 4 942 40 U.S. government-sponsored enterprises 18 57,154 2,029 17 63,965 18,083 35 121,119 20,112 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 4 11,584 544 4 11,584 544 Corporate debt securites 1 953 47 5 2,673 327 6 3,626 374 Total 92 156,136 9,312 183 316,766 57,060 275 472,902 66,372

Loans, net and allowance for _2

Loans, net and allowance for credit losses (Tables)	12 Months Ended
Loans, net and allowance for credit losses (Tables)	Dec. 31, 2023
Loans, net and allowance for credit losses
Schedule of major classifications of loans outstanding	(Dollars in thousands) December 31, 2023 December 31, 2022 Commercial and Industrial $ 368,411 $ 433,048 Municipal 175,304 166,210 Total 543,715 599,258 Real estate Commercial 1,863,118 1,709,827 Residential 360,803 330,728 Total 2,223,921 2,040,555 Consumer Indirect Auto 75,389 76,461 Consumer Other 6,872 13,842 Total 82,261 90,303 Total $ 2,849,897 $ 2,730,116
Schedule of major classifications of loans by past due status	December 31, 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 $ 53 $ 155 $ 10 $ 218 $ 368,193 $ 368,411 $ Municipal 175,304 175,304 Real estate: Commercial 152 5 279 436 1,862,682 1,863,118 Residential 1,456 50 1,610 3,116 357,687 360,803 986 Consumer 1,069 285 85 1,439 80,822 82,261 Total $ 2,730 $ 495 $ 1,984 $ 5,209 $ 2,844,688 $ 2,849,897 $ 986 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 nonaccrual loans	December 31, 2023 Total Nonaccrual with Nonaccrual with Nonaccrual an Allowance for no Allowance for (Dollars in thousands) Loans Credit Losses Credit Losses Commercial $ 10 $ 10 $ Municipal Real estate: Commercial 2,974 1,170 1,804 Residential 760 760 Consumer 218 218 Total $ 3,962 $ 1,180 $ 2,782 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	December 31, 2022 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income (Dollars in thousands) Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 78 $ 421 $ $ 119 $ 7 Municipal Real estate: Commercial 2,063 2,654 2,753 59 Residential 1,520 1,733 1,036 28 Consumer 232 244 218 Total 3,893 5,052 4,126 94 With an allowance recorded: Commercial 20 20 19 27 2 Municipal Real estate: Commercial Residential 240 244 21 286 12 Consumer Total 260 264 40 313 14 Total impaired loans Commercial 98 441 19 146 9 Municipal Real estate: Commercial 2,063 2,654 2,753 59 Residential 1,760 1,977 21 1,322 40 Consumer 232 244 218 Total $ 4,153 $ 5,316 $ 40 $ 4,439 $ 108
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 Revolving Loans Converted to Term Total Commercial Pass $ 9,856 $ 38,172 $ 28,127 $ 29,966 $ 44,551 $ 82,190 $ 131,536 $ 650 $ 365,048 Special Mention 876 182 49 832 1,939 Substandard 15 19 42 33 534 781 1,424 Total Commercial 9,871 39,067 28,351 29,966 44,584 82,773 133,149 650 368,411 Municipal Pass 1,888 48,095 94,791 10,804 16 19,652 58 175,304 Special Mention Substandard Total Municipal 1,888 48,095 94,791 10,804 16 19,652 58 175,304 Commercial real estate Pass 156,277 553,754 491,506 143,068 153,426 351,142 117 1,849,290 Special Mention 1,299 360 2,761 4,420 Substandard 169 1,338 1,520 160 697 5,524 9,408 Total Commercial real estate 156,446 556,391 493,026 143,228 154,483 359,427 117 1,863,118 Residential real estate Pass 17,385 52,093 65,280 27,118 16,652 84,652 83,507 13,490 360,177 Special Mention Substandard 4 329 288 5 626 Total Residential real estate 17,389 52,093 65,280 27,447 16,652 84,940 83,512 13,490 360,803 Consumer Pass 27,053 30,307 12,460 5,441 3,107 2,981 694 82,043 Special Mention Substandard 58 79 31 30 20 218 Total Consumer 27,053 30,365 12,539 5,472 3,137 3,001 694 82,261 Total Loans $ 212,647 $ 726,011 $ 693,987 $ 216,917 $ 218,872 $ 549,793 $ 217,413 $ 14,257 $ 2,849,897 Gross charge-offs Commercial $ $ $ $ 21 $ $ 33 $ 4 $ $ 58 Municipal Commercial real estate 2,598 2,598 Residential real estate Consumer 95 101 69 49 55 369 Total Gross charge-offs $ $ 95 $ 101 $ 90 $ 49 $ 2,686 $ 4 $ $ 3,025 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	December 31, 2023 Real estate (Dollars in thousands) Commercial Municipal Commercial Residential Consumer Total Allowance for credit losses: Beginning balance $ 4,365 $ 1,247 $ 17,915 $ 3,072 $ 873 $ 27,472 Impact of adopting ASC 326 (1,683) 747 (3,344) 967 30 (3,283) Beginning balance 2,682 1,994 14,571 4,039 903 24,189 Charge-offs (58) (2,598) (369) (3,025) Recoveries 11 1 24 129 165 (Credits) provisions (363) (1,206) 2,179 (281) 237 566 Ending balance $ 2,272 $ 788 $ 14,153 $ 3,782 $ 900 $ 21,895 Ending balance: individually evaluated for impairment 10 21 31 Ending balance: collectively evaluated for impairment $ 2,262 $ 788 $ 14,132 $ 3,782 $ 900 $ 21,864 Loans receivable: Ending balance $ 368,411 $ 175,304 $ 1,863,118 $ 360,803 $ 82,261 $ 2,849,897 Individually evaluated - collateral dependent - real estate 7 2,974 1,749 4,730 Individually evaluated - collateral dependent - non-real estate 10 10 Collectively evaluated for impairment $ 368,404 $ 175,304 $ 1,860,144 $ 359,054 $ 82,261 $ 2,845,167 December 31, 2022 Real estate (Dollars in thousands) Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 6,498 $ 1,955 $ 15,928 $ 3,209 $ 793 $ 28,383 Charge-offs (161) (284) (31) (311) (787) Recoveries 40 110 4 171 325 (Credits) provisions (2,012) (708) 2,161 (110) 220 (449) 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 December 31, 2021 Real estate (Dollars in thousands) Commercial Municipal Commercial Residential Consumer Total Allowance for loan losses: Beginning balance $ 7,849 $ 885 $ 14,559 $ 3,129 $ 922 $ 27,344 Charge-offs (492) (252) (24) (188) (956) Recoveries 89 68 7 81 245 Provisions (credits) (948) 1,070 1,553 97 (22) 1,750 Ending balance $ 6,498 $ 1,955 $ 15,928 $ 3,209 $ 793 $ 28,383 Ending balance: individually evaluated for impairment 40 109 26 175 Ending balance: collectively evaluated for impairment $ 6,458 $ 1,955 $ 15,819 $ 3,183 $ 793 $ 28,208 Loans receivable: Ending balance $ 554,547 $ 58,580 $ 1,343,539 $ 297,624 $ 74,883 $ 2,329,173 Ending balance: individually evaluated for impairment 199 2,890 1,273 4,362 Ending balance: collectively evaluated for impairment $ 554,348 $ 58,580 $ 1,340,649 $ 296,351 $ 74,883 $ 2,324,811
Schedule of allowance for credit losses on off balance sheet commitments	(Dollars in thousands) December 31, 2023 December 31, 2022 December 31, 2021 Beginning balance $ 179 $ 137 $ 122 Impact of adopting Topic 326 270 (Credit) debit recorded in noninterest expense (406) 42 15 Total allowance for credit losses on off balance sheet commitments $ 43 $ 179 $ 137

Off balance sheet financial i_2

Off balance sheet financial instruments (Tables)	12 Months Ended
Off balance sheet financial instruments (Tables)	Dec. 31, 2023
Off balance sheet financial instruments
Summary of contractual amounts of off-balance sheet commitments	(Dollars in thousands) 2023 2022 Commitments to extend credit $ 435,015 $ 553,337 Unused portions of lines of credit 90,407 78,406 Standby letters of credit 62,155 57,626 $ 587,577 $ 689,369

Premises and equipment, net (Ta

Premises and equipment, net (Tables)	12 Months Ended
Premises and equipment, net (Tables)	Dec. 31, 2023
Premises and equipment, net
Summary of premises and equipment	(Dollars in thousands) 2023 2022 Land $ 7,302 $ 7,302 Premises and leasehold improvements 60,266 55,865 Right-of-use assets 10,576 7,980 Furniture, fixtures and equipment 21,878 20,626 Gross premises and equipment 100,022 91,773 Less: accumulated depreciation 38,746 36,106 Net premises and equipment $ 61,276 $ 55,667

Operating lease commitments a_2

Operating lease commitments and contingencies (Tables)	12 Months Ended
Operating lease commitments and contingencies (Tables)	Dec. 31, 2023
Operating lease commitments and contingencies
Summary of future minimum annual rent commitments under various operating leases	(Dollars in thousands) 2024 $ 838 2025 858 2026 862 2027 789 2028 809 Thereafter 11,942 Total future minimum lease payments 16,098 Less amount representing interest (5,138) Present value of future minimum lease payments $ 10,960

Other assets (Tables)

Other assets (Tables)	12 Months Ended
Other assets (Tables)	Dec. 31, 2023
Other assets
Schedule of components of other assets	(Dollars in thousands) December 31, 2023 December 31, 2022 Other real estate owned $ $ 121 Mortgage servicing rights 870 914 Prepaid shares tax 949 48 Prepaid pension 3,764 2,314 Prepaid expenses 4,840 3,038 Restricted equity securities (FHLB and other) 5,180 9,630 Investment in low income housing partnership 5,015 5,446 Interest rate swaps 19,278 21,794 Interest rate floor 1 Other assets 2,353 2,765 Total $ 42,249 $ 46,071

Deposits (Tables)

Deposits (Tables)	12 Months Ended
Deposits (Tables)	Dec. 31, 2023
Deposits.
Summary of major components of interest-bearing and noninterest-bearing deposits	(Dollars in thousands) December 31, 2023 December 31, 2022 Interest-bearing deposits: Money market accounts $ 782,243 $ 685,323 NOW accounts 796,426 772,712 Savings accounts 429,011 523,931 Time deposits less than $250 505,409 199,136 Time deposits $250 or more 121,265 92,731 Total interest-bearing deposits 2,634,354 2,273,833 Noninterest-bearing deposits 644,683 772,765 Total deposits $ 3,279,037 $ 3,046,598
Schedule of aggregate amounts of maturities for all time deposits	(Dollars in thousands) 2024 $ 331,713 2025 53,168 2026 98,471 2027 46,401 2028 92,860 Thereafter 4,061 $ 626,674

Short-term borrowings (Tables)

Short-term borrowings (Tables)	12 Months Ended
Short-term borrowings (Tables)	Dec. 31, 2023
Short-term borrowings
Summary of short-term borrowings	At and for the year ended December 31, 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 $ 17,590 $ 19,160 $ 28,470 5.54 % 5.35 % FHLB advances 19,171 158,000 4.48 Total short-term borrowings $ 17,590 $ 38,331 $ 186,470 5.01 % 5.35 % 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 % 4.33 % FHLB advances 100,400 32,647 125,975 2.73 4.45 Total short-term borrowings $ 114,930 $ 42,680 $ 142,075 2.58 % 4.43 % At and for the year ended December 31, 2021 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End (Dollars in thousands, except percents) Balance Balance Balance the Year of the Year FHLB advances $ $ 13,973 $ 50,000 0.56 % %

Long-term debt (Tables)

Long-term debt (Tables)	12 Months Ended
Long-term debt (Tables)	Dec. 31, 2023
Long-term debt
Schedule of long-term debt consisting of advances	Interest Rate (Dollars in thousands, except percents) Fixed December 31, 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

Fair value of financial instr_2

Fair value of financial instruments (Tables)	12 Months Ended
Fair value of financial instruments (Tables)	Dec. 31, 2023
Fair value of financial instruments
Schedule of assets and liabilities measured at fair value on a recurring basis	Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable (Dollars in thousands) Identical Assets Inputs Inputs December 31, 2023 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 184,057 $ 184,057 $ $ U.S. government-sponsored enterprises 2,152 2,152 State and municipals: Taxable 57,100 57,100 Tax-exempt 67,124 67,124 Mortgage-backed securities: U.S. government agencies 724 724 U.S. government-sponsored enterprises 84,040 84,040 Corporate debt securities 3,730 3,730 Common equity securities 98 98 Total investment securities $ 399,025 $ 184,155 $ 214,870 $ Interest rate floor-other assets $ $ Interest rate swap-other assets $ 19,278 $ 19,278 Interest rate swap-other liabilities $ (18,808) $ (18,808) 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 December 31, 2023 Amount (Level 1) (Level 2) (Level 3) Loans individually evaluated for credit loss $ 4,740 $ $ $ 4,740 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 December 31, 2023 Estimate Valuation Techniques Unobservable Input (Weighted Average) Loans individually evaluated for credit loss $ 4,740 Appraisal of collateral Appraisal adjustments 22.8% to 82.4% (63.6)% Liquidation expenses 3.0% to 6.0% (5.2)% 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 December 31, 2023 Value Value (Level 1) (Level 2) (Level 3) Financial assets: Cash and due from banks $ 187,365 $ 187,365 $ 187,365 $ $ Investment securities: Available-for-sale 398,927 398,927 184,057 214,870 Common equity securities 98 98 98 Held-to-maturity 84,851 71,698 71,698 Net loans 2,828,002 2,593,151 2,593,151 Accrued interest receivable 12,734 12,734 12,734 Mortgage servicing rights 870 1,745 1,745 Restricted equity securities (FHLB and other) 5,180 5,180 5,180 Interest rate floor Interest rate swaps 19,278 19,278 19,278 Total $ 3,537,555 $ 3,290,426 Financial liabilities: Deposits $ 3,279,037 $ 3,274,774 $ $ 3,274,774 $ Short-term borrowings 17,590 17,590 17,590 Long-term debt 25,000 24,924 24,924 Subordinated debt 33,000 45,504 45,504 Accrued interest payable 5,765 5,765 5,765 Interest rate swaps 18,808 18,808 18,808 Total $ 3,379,200 $ 3,387,365 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 debt 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

Derivatives and hedging activ_2

Derivatives and hedging activities (Tables)	12 Months Ended
Derivatives and hedging activities (Tables)	Dec. 31, 2023
Derivatives and hedging activities
Schedule of amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges	As of December 31, 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) $ 143,573 $ $ 871 $ Fixed Rate Loans (2) 50,462 462 Total $ 194,035 $ $ 1,333 $ (1) Fixed Rate AFS Securities. 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 December 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $143.6 million. The amounts of the designated hedged items were $100.0 million. (2) Fixed Rate Loan Assets. These amounts include the carrying value of fixed rate loan 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 December 31, 2023, the principal value of the hedged item was $50.0 million.
Schedule of fair value of derivative financial instruments and balance sheet classification	Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities As of December 31, 2023 As of December 31, 2022 (1) As of December 31, 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 $ Other Assets $ Other Assets $ 1 $ 150,000 Other Liabilities $ 1,270 Other Liabilities $ Total derivatives designated as hedging instruments $ $ 1 $ $1,270 $ Derivatives not designated as hedging instruments Interest Rate Products $ 230,323 Other Assets $ 19,833 Other Assets $ 22,195 $ 230,323 Other Liabilities $ 19,364 Other Liabilities $ 21,466 Other Contracts 8,403 Other Assets 3 Other Assets 7,408 Other Liabilities Other Liabilities Total derivatives not designated as hedging instruments $ 19,836 $ 22,195 $ 19,364 $ 21,466 (1) The 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) Twelve months ended December 31, 2023 Amount of (Loss) Recognized in OCI on Derivative Amount of (Loss) Recognized in OCI Included Component Amount of (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component Derivatives in Cash Flow Hedging Relationships Interest Rate Products $ (1) $ $ (1) Interest Income $ (48) $ $ (48) Total $ (1) $ $ (1) $ (48) $ $ (48) (Dollars in thousands) Twelve months ended December 31, 2022 Amount of (Loss) Recognized in OCI on Derivative Amount of (Loss) Recognized in OCI Included Component Amount of (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Amount of Gain Reclassified from Accumulated OCI into Income Amount of Gain Reclassified from Accumulated OCI into Income Included Component Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component Derivatives in Cash Flow Hedging Relationships Interest Rate Products $ (515) $ (497) $ (18) Interest Income $ 212 $ 276 $ (64) Total $ (515) $ (497) $ (18) $ 212 $ 276 $ (64) * Amounts disclosed are gross and not net of taxes.
Schedule of effect of derivative financial instruments on Income Statement	Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships For the twelve months ended December 31, 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 income (loss) in which the effects of fair value or cash flow hedges are recorded. $ 142 $ 212 The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships Interest contracts Hedged items 871 Derivatives designated as hedging instruments (681) Gain or (loss) on cash flow hedging relationships Interest contracts Amount of (loss) gain reclassified from AOCI into income (48) 212 Amount of gain reclassified from AOCI into income - Included Component 276 Amount of (loss) reclassified from AOCI into income - Excluded Component $ (48) $ (64)
Schedule of gain (loss) on derivative instruments not designated as hedging instruments	Amount of Gain or (Loss) Amount of Gain Recognized in Recognized in Location of Gain or (Loss) Income on Derivative Income Recognized in Income on Twelve Months Ended Twelve Months Ended (Dollars in thousands) Derivative December 31, 2023 December 31, 2022 Derivatives Not Designated as Hedging Instruments: Interest Rate Products Other income / (expense) $ (262) $ 516 Other Contracts Other income / (expense) (6) 5 Total $ (268) $ 521 Fee Income Fee income $ 652 $ 106
Schedule of offsetting derivatives	Offsetting of Derivative Assets as of December 31, 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 $ 19,833 $ $ 19,833 $ $ 17,590 $ 2,243 Offsetting of Derivative Liabilities as of December 31, 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 $ 20,633 $ $ 20,633 $ 20,633 $ $ *Cash collateral of $2,450 was paid but not presented as an offset above. 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 $ $

Stock plans (Tables)

Stock plans (Tables)	12 Months Ended
Stock plans (Tables)	Dec. 31, 2023
Stock plans
Schedule of activity related to restricted stock	(Dollars in thousands) 2023 2022 2021 Nonvested, January 1 39,470 36,281 31,923 Granted shares 23,428 19,787 19,818 Vested shares 16,791 16,403 15,460 (Surrendered) Forfeited shares (12,524) 195 Nonvested, December 31 58,631 39,470 36,281

Employee benefit plans (Tables)

Employee benefit plans (Tables)	12 Months Ended
Employee benefit plans (Tables)	Dec. 31, 2023
Employee benefit plans
Summary of pension and postretirement life insurance plans	Pension Benefits (Dollars in thousands) 2023 2022 Change in benefit obligation: Benefit obligation, beginning $ 13,792 $ 18,066 Interest cost 655 456 Change in experience gain 2 26 Change in actuarial assumptions 306 (3,899) Benefits paid (910) (857) Benefit obligation, ending 13,845 13,792 Change in plan assets: Fair value of plan assets, beginning 16,106 19,257 Actual return on plan assets 2,413 (2,294) Employer contributions Benefits paid (910) (857) Fair value of plan assets, ending 17,609 16,106 Funded status at end of year $ 3,764 $ 2,314
Schedule of amounts recognized in balance sheet	Pension Benefits (Dollars in thousands) 2023 2022 (Other Assets)/Other Liabilities $ (3,764) $ (2,314) Amounts recognized in the accumulated other comprehensive loss consist of: Net actuarial gain (4,370) (5,499) Deferred taxes 956 1,184 Net amount recognized $ (3,414) $ (4,315)
Schedule of components of net periodic benefit cost	(Dollars in thousands) Pension Benefits Twelve Months Ended December 31, 2023 2022 2021 Net periodic pension income: Interest cost $ 655 $ 456 $ 419 Expected return on plan assets (1,170) (1,407) (1,288) Amortization of unrecognized net loss 194 198 301 Net periodic pension income: (321) (753) (568) Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss 655 456 419 Deferred tax (141) (96) (88) Total recognized in other comprehensive income (loss) 514 360 331 Total recognized in net period pension cost and other comprehensive income (loss) $ 193 $ (393) $ (237)
Schedule of weighted-average assumptions used to determine benefit obligations and related expenses	Pension Benefits 2023 2022 2021 Discount rate: Obligation 4.73 % 4.93 % 2.59 % Expense 4.93 2.59 2.25 Expected long-term return on plan assets 7.50 % 7.50 % 7.50 %
Schedule of pension plan weighted-average asset allocations	2023 2022 Asset Category: Cash and cash equivalents 4.4 % 4.7 % Equity securities 63.3 60.3 Corporate bonds 18.1 19.5 U.S. government securities 14.2 15.5 100.0 % 100.0 %
Schedule of fair value measurement of pension plan assets	December 31, 2023 Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 783 $ 783 $ $ Equity securities: U.S. large cap 9,482 9,482 International 1,671 1,671 Fixed income securities: U.S. Treasuries 343 343 U.S. government agencies 2,149 2,149 Corporate bonds 3,181 3,181 Total $ 17,609 $ 11,936 $ 5,673 $ December 31, 2022 Quoted Prices in Active Markets Significant Significant for Identical Observable Observable Assets Inputs Inputs (Dollars in thousands) Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 759 $ 759 $ $ Equity securities: U.S. large cap 7,365 7,365 International 2,338 2,338 Fixed income securities: U.S. Treasuries 511 511 U.S. government agencies 1,991 1,991 Corporate bonds 3,142 3,142 Total $ 16,106 $ 10,462 $ 5,644 $
Schedule of expected benefit payments	(Dollars in thousands) Pension Benefits 2024 $ 966 2025 999 2026 1,022 2027 1,030 2028 1,024 Thereafter 4,946

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
Income taxes (Tables)	Dec. 31, 2023
Income taxes
Schedule of current and deferred amounts of the provision for income taxes expense	(Dollars in thousands) 2023 2022 2021 Current $ 3,853 $ 6,665 $ 9,548 Deferred 1,268 611 450 Total income tax expense $ 5,121 $ 7,276 $ 9,998
Schedule of the components of the net deferred tax asset	(Dollars in thousands) 2023 2022 Deferred tax assets: Allowance for loan losses $ 4,789 $ 5,916 Lease liability 2,397 1,787 Defined benefit plan 1,635 1,798 Deferred compensation 694 860 Deferred loan fees and costs 59 Investment securities available for sale 11,270 14,266 Other 339 196 Total 21,124 24,882 Deferred tax liabilities: Lease right-of-use assets 2,313 1,718 Premises and equipment, net 2,109 1,692 Merger related accounting 474 472 Deferred loan costs 92 Accrued compensation 1,912 1,872 Other 454 389 Total 7,354 6,143 Net deferred tax asset $ 13,770 $ 18,739
Schedule of the reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate	2023 2022 2021 (Dollars in thousands, except percents) Amount % Amount % Amount % Provision for income tax at statutory rate $ 6,825 21.00 % $ 9,527 21.00 % $ 11,239 21.00 % State tax, net of federal benefit 397 1.22 216 0.63 475 0.89 Tax exempt interest (1,057) (3.25) (1,400) (3.09) (1,194) (2.23) Bank owned life insurance income (221) (0.68) (205) (0.45) (119) (0.22) Residential housing program tax credits (755) (2.32) (911) (2.01) (1,091) (2.04) Nondeductible transaction costs 179 0.55 Other, net (247) (0.76) 49 (0.04) 688 1.29 Total $ 5,121 15.76 % $ 7,276 16.04 % $ 9,998 18.69 %

Parent Company financial stat_2

Parent Company financial statements (Tables)	12 Months Ended
Parent Company financial statements (Tables)	Dec. 31, 2023
Parent Company financial statements
Condensed Balance Sheets	(Dollars in thousands) 2023 2022 Assets: Cash and cash equivalents $ 188 $ 359 Equity securities 98 110 Investment in bank subsidiary 372,348 346,734 Other assets 936 1,295 Total assets $ 373,570 $ 348,498 Liabilities and Stockholders’ Equity: Subordinated debt $ 33,000 $ 33,000 Accrued interest payable 148 148 Stockholders’ equity 340,422 315,350 Total liabilities and stockholders’ equity $ 373,570 $ 348,498
CONDENSED STATEMENTS OF INCOME	(Dollars in thousands) 2023 2022 2021 Income: Dividends from subsidiaries $ 20,158 $ 11,325 $ 17,593 Other income 4 3 4 Unrealized holding (losses) gains on equity securities (11) (31) 2 Total income 20,151 11,297 17,599 Expense: Acquisition related expenses 1,580 Interest expense on subordinated debt 1,774 1,774 1,774 Other expenses 1,538 1,188 222 Total expenses 4,892 2,962 1,996 Income before taxes and undistributed income 15,259 8,335 15,603 Income tax benefit (857) (624) (410) Income before undistributed income of subsidiaries 16,116 8,959 16,013 Equity in undistributed net income of subsidiaries 11,264 29,131 27,506 Net income $ 27,380 $ 38,090 $ 43,519
Condensed Statements of Cash Flows	(Dollars in thousands) 2023 2022 2021 Cash flows from operating activities: Net income $ 27,380 $ 38,090 $ 43,519 Adjustments: Net losses (gains) on investment securities 11 31 (2) Undistributed net income of subsidiaries (11,264) (29,131) (27,506) Decrease (increase) in other assets 359 (591) (429) Decrease in other liabilities (40) Stock based compensation 888 534 546 Net cash provided by operating activities 17,374 8,893 16,128 Cash flows from financing activities: Retirement of common stock (5,886) (1,253) (2,361) Cash dividends paid (11,659) (11,325) (10,792) Net cash used in financing activities (17,545) (12,578) (13,153) (Decrease) increase in cash and cash equivalents (171) (3,685) 2,975 Cash and cash equivalents at beginning of year 359 4,044 1,069 Cash and cash equivalents at end of year $ 188 $ 359 $ 4,044

Regulatory matters (Tables)

Regulatory matters (Tables)	12 Months Ended
Regulatory matters (Tables)	Dec. 31, 2023
Regulatory matters
Schedule of actual capital ratios and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions	December 31, 2023 Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands, except percents) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Company $ 321,403 12.10 % $ 119,577 4.50 % NA NA Peoples Bank 353,330 13.30 119,561 4.50 $ 172,699 6.50 % Tier 1 capital to risk-weighted assets: Company 321,403 12.10 159,436 6.00 NA NA Peoples Bank 353,330 13.30 159,414 6.00 212,552 8.00 Total capital to risk-weighted assets: Company 376,341 14.16 212,581 8.00 NA NA Peoples Bank 375,268 14.12 212,552 8.00 265,690 10.00 Tier 1 capital to average assets: Company 321,403 8.50 151,252 4.00 NA NA Peoples Bank 353,330 9.34 % 151,274 4.00 % 189,093 5.00 % NA = not applicable December 31, 2022 Minimum to be Well Capitalized under Minimum For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands, except percents) Amount Ratio Amount Ratio Amount Ratio Common equity Tier 1 capital to risk-weighted assets: Company $ 308,211 11.13 % $ 124,569 4.50 % NA NA Peoples Bank 339,596 12.27 124,563 4.50 $ 179,924 6.50 % Tier 1 capital to risk-weighted assets: Company 308,211 11.13 166,093 6.00 NA NA Peoples Bank 339,596 12.27 166,083 6.00 221,444 8.00 Total capital to risk-weighted assets: Company 335,683 12.13 221,457 8.00 NA NA Peoples Bank 367,068 13.26 221,444 8.00 276,806 10.00 Tier 1 capital to average assets: Company 308,211 9.03 136,559 4.00 NA NA Peoples Bank 339,596 9.69 140,167 4.00 175,209 5.00 NA = not applicable

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	12 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Dec. 31, 2023
Accumulated Other Comprehensive Loss
Schedule of components of accumulated other comprehensive (loss)	(Dollars in thousands) December 31, 2023 December 31, 2022 Net unrealized loss on investment securities available for sale $ (51,527) $ (66,250) Income tax benefit (11,270) (14,266) Net of income taxes (40,257) (51,984) Benefit plan adjustments (4,370) (5,499) Income tax benefit (956) (1,184) Net of income taxes (3,414) (4,315) Derivative adjustments (871) (47) Income tax benefit (191) (10) Net of income taxes (680) (37) Accumulated other comprehensive loss $ (44,351) $ (56,336)
Schedule of other comprehensive income (loss) and related tax effects	Other comprehensive income (loss) and related tax effects for the years ended December 31, 2023, 2022 and 2021 are as follows: (Dollars in thousands) 2023 2022 2021 Unrealized gain (loss) on investment securities available for sale $ 14,804 $ (66,435) $ (11,487) Net (gain) loss on the sale of investment securities available for sale (1) (81) 1,976 Other comprehensive income (loss) on available for sale debt securities 14,723 (64,459) (11,487) Benefit plans: Amortization of actuarial loss (2) 194 198 301 Actuarial gain 935 172 1,808 Net change in benefit plan liabilities 1,129 370 2,109 Net change in derivatives (824) (728) (322) Other comprehensive income (loss) before taxes 15,028 (64,817) (9,700) Income tax expense (benefit) 3,043 (13,995) (2,037) Other comprehensive income (loss) $ 11,985 $ (50,822) $ (7,663) (1) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in gains on sale of investment securities on the consolidated statements of income and comprehensive income. (2) Represents amounts reclassified out of accumulated comprehensive income (loss) and included in the computation of net periodic pension expense. Refer to Note 15 included in these consolidated financial statements.

Summary of significant accoun_4

Summary of significant accounting policies - Nature of operations and Basis of presentation (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) Office $ / shares	Dec. 31, 2022 $ / shares	Dec. 31, 2021 $ / shares
Summary of significant accounting policies
Number of full-service community banking offices \| Office	28
Reclassification of prior period items amounts effect on net income \| $	$ 0
Dividends declared \| $ / shares	$ 1.64	$ 1.58	$ 1.50

Summary of significant accoun_5

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
Merger termination fee	$ 4.8

Summary of significant accoun_6

Summary of significant accounting policies - Prior Period Adjustments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023
Error Corrections and Prior Period Adjustments Restatement
Allowance for credit losses	$ 21,895
Overstatement of allowance for credit losses
Error Corrections and Prior Period Adjustments Restatement
Allowance for credit losses			$ 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	$ 1,100	$ 400

Summary of significant accoun_7

Summary of significant accounting policies - Loans, net (Details)	12 Months Ended
	Dec. 31, 2023
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable
Maximum loan to value percentage	80%
Residential Mortgage \| Maximum
Accounts, Notes, Loans and Financing Receivable
Maximum amortization period	30 years

Summary of significant accoun_8

Summary of significant accounting policies - Nonperforming assets and Allowance for loan losses (Details)	12 Months Ended
	Dec. 31, 2023
Summary of significant accounting policies
Non performing loans past due period for Non-accrual status	90 days
Minimum contractual terms of a loan	6 months

Summary of significant accoun_9

Summary of significant accounting policies - Accrued Interest Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle
Allowance for credit losses	$ 21,895
Stockholders' equity	340,422		$ 315,350	$ 340,126	$ 316,877
Accrued interest receivable on loans	10,700
Accrued interest receivable on available of sale securities and held to maturity securities	193
Cumulative impact of adoption \| ASC 326
New Accounting Pronouncements or Change in Accounting Principle
Allowance for credit losses		$ 3,000	24,189
Stockholders' equity			$ 2,364
Accrued interest receivable on available of sale securities and held to maturity securities	$ 1,700

Summary of significant accou_10

Summary of significant accounting policies - Premises and equipment, net (Details)	Dec. 31, 2023
Minimum \| Premises and leasehold improvements
Premises and equipment, net
Property, plant and equipment, estimated useful life	7 years
Minimum \| Furniture, fixtures and equipment
Premises and equipment, net
Property, plant and equipment, estimated useful life	3 years
Maximum \| Premises and leasehold improvements
Premises and equipment, net
Property, plant and equipment, estimated useful life	40 years
Maximum \| Furniture, fixtures and equipment
Premises and equipment, net
Property, plant and equipment, estimated useful life	10 years

Summary of significant accou_11

Summary of significant accounting policies - Goodwill and other intangible assets, net, Advertising (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Goodwill
Impairment losses on intangible assets	$ 0	$ 0
Maximum
Goodwill
Finite useful life of intangible assets	10 years

Summary of significant accou_12

Summary of significant accounting policies - Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Summary of significant accounting policies
Income tax benefit recognition threshold	50%
Unrecognized tax benefit or accrued interest and penalties	$ 0	$ 0	$ 0

Summary of significant accou_13

Summary of significant accounting policies - Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Basic earnings per share
Net income, Basic	$ 27,380	$ 38,090	$ 43,519
Average common shares outstanding - Basic	7,107,908	7,168,092	7,196,160
Earnings per share - Basic	$ 3.85	$ 5.31	$ 6.05
Diluted earnings per share
Net income, Diluted	$ 27,380	$ 38,090	$ 43,519
Average common shares outstanding - Diluted	7,151,471	7,211,643	7,235,303
Earnings per share - Diluted	$ 3.83	$ 5.28	$ 6.02

Summary of significant accou_14

Summary of significant accounting policies - Recent accounting standards (Details) - USD ($) $ in Thousands	Jan. 01, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Loans and leases
Ending balance		$ 21,895
Off-balance sheet exposures		43	$ 179	$ 137	$ 122
Impact to retained earnings		248,550	230,515
Stockholders' equity		340,422	315,350	$ 340,126	$ 316,877
Commercial
Loans and leases
Ending balance		2,272
Commercial real estate
Loans and leases
Ending balance		14,153
Residential real estate
Loans and leases
Ending balance		3,782
Consumer
Loans and leases
Ending balance		900
Cumulative impact of adoption
Loans and leases
Off-balance sheet exposures		$ 270
Accounting Standards Update 2016-13 \| Cumulative impact of adoption
Error Corrections and Prior Period Adjustments Restatement
Decreased of ACL related to loans offset to unfunded loan commitments	$ 3,300
Loans and leases
Ending balance	$ 3,000		24,189
Stockholders' equity			2,364
Accounting Standards Update 2016-13 \| Cumulative impact of adoption \| Commercial
Loans and leases
Ending balance			2,682
Accounting Standards Update 2016-13 \| Cumulative impact of adoption \| Commercial real estate
Loans and leases
Ending balance			14,571
Accounting Standards Update 2016-13 \| Cumulative impact of adoption \| Residential real estate
Loans and leases
Ending balance			4,039
Accounting Standards Update 2016-13 \| Cumulative impact of adoption \| Consumer
Loans and leases
Ending balance			$ 903

Investment securities - Amortiz

Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Investment Securities
Available-for-sale, Amortized Cost	$ 450,454	$ 543,953
Available-for-sale, Gross Unrealized Gains		93
Available-for-sale, Gross Unrealized Losses	51,527	66,343
Available-for-sale	398,927	477,703
Held-to-maturity, Amortized Cost	84,851	91,179
Held-to-maturity, Gross Unrealized Gains	1	1
Held-to-maturity, Gross Unrealized Losses	13,154	14,617
Held-to-maturity, Fair value	71,698	76,563
U.S. Treasury securities
Investment Securities
Available-for-sale, Amortized Cost	197,920	199,937
Available-for-sale, Gross Unrealized Losses	13,863	19,640
Available-for-sale	184,057	180,297
U.S. Government-sponsored enterprises state and municipals
Investment Securities
Available-for-sale, Amortized Cost	2,539	16,955
Available-for-sale, Gross Unrealized Losses	387	585
Available-for-sale	2,152	16,370
State and municipals, Taxable
Investment Securities
Available-for-sale, Amortized Cost	67,831	68,946
Available-for-sale, Gross Unrealized Losses	10,731	13,588
Available-for-sale	57,100	55,358
State and municipals, Tax-exempt
Investment Securities
Available-for-sale, Amortized Cost	75,742	99,774
Available-for-sale, Gross Unrealized Gains		93
Available-for-sale, Gross Unrealized Losses	8,618	11,460
Available-for-sale	67,124	88,407
Tax-exempt state and municipals
Investment Securities
Held-to-maturity, Amortized Cost	11,201	11,237
Held-to-maturity, Gross Unrealized Gains	1	1
Held-to-maturity, Gross Unrealized Losses	660	841
Held-to-maturity, Fair value	10,542	10,397
Residential mortgage-backed securities, U.S. government agencies
Investment Securities
Available-for-sale, Amortized Cost	758	982
Available-for-sale, Gross Unrealized Losses	34	40
Available-for-sale	724	942
Held-to-maturity, Amortized Cost	15,400	17,304
Held-to-maturity, Gross Unrealized Losses	2,653	3,016
Held-to-maturity, Fair value	12,747	14,288
Residential mortgage-backed securities, U.S. government-sponsored enterprises
Investment Securities
Available-for-sale, Amortized Cost	89,935	141,231
Available-for-sale, Gross Unrealized Losses	17,264	20,112
Available-for-sale	72,671	121,119
Held-to-maturity, Amortized Cost	58,250	62,638
Held-to-maturity, Gross Unrealized Losses	9,841	10,760
Held-to-maturity, Fair value	48,409	51,878
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Investment Securities
Available-for-sale, Amortized Cost	11,729	12,128
Available-for-sale, Gross Unrealized Losses	360	544
Available-for-sale	11,369	11,584
Corporate Debt Securities
Investment Securities
Available-for-sale, Amortized Cost	4,000	4,000
Available-for-sale, Gross Unrealized Losses	270	374
Available-for-sale	$ 3,730	$ 3,626

Investment securities - Equity

Investment securities - Equity Securities Portfolio (Details) $ in Thousands	Dec. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($)
Investment Securities
Number of equity securities portfolio consisting of stock of other financial institutions \| security	1
Equity investments carried at fair value	$ 98	$ 110
Fair value of equity portfolio lesser than the cost basis	55
Equity Securities
Investment Securities
Equity investments carried at fair value	$ 98

Investment securities - Unreali

Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Investment securities
Net (loss) gain recognized during the period on equity securities	$ (11)	$ (31)	$ 2
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date	$ (11)	$ (31)	$ 2

Investment securities - Maturit

Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Investment securities
Within one year	$ 22,594
After one but within five years	192,724
After five but within ten years	53,280
After ten years	76,895
Available for sale securities, Amortized Cost	345,493
Mortgage-backed and other amortizing securities	104,961
Within one year	21,898
After one but within five years	178,449
After five but within ten years	46,627
After ten years	65,037
Available for sale securities, Fair Value	312,011
Mortgage-backed and other amortizing securities	86,916
Total	$ 398,927	$ 477,703

Investment securities - Summary

Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 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	10,632
Amortized Cost, Held to maturity	11,201
Amortized Cost, Mortgage-backed securities, Held to maturity	73,650
Held-to-maturity, Amortized Cost	84,851	$ 91,179
Fair Value of Held-to-maturity Securities
Fair Value, After one but within five years, Held to maturity	528
Fair Value, After five but within ten years, Held to maturity	10,014
Fair Value, Held to maturity	10,542
Fair Value, Mortgage-backed securities, Held to maturity	61,156
Held to maturity, Fair Value	$ 71,698	$ 76,563

Investment securities - Pledged

Investment securities - Pledged Securities (Details) - USD ($) $ in Millions	Dec. 31, 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
Federal Reserve Bank Advances [Member]
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged	$ 191
Collateral Pledged
Available-for-sale and Held-to-maturity securities
Carrying value of securities pledged	$ 322.4	$ 168
U.S. government-sponsored enterprises
Available-for-sale and Held-to-maturity securities
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer	10%	10%

Investment securities - Fair Va

Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security	3	92
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	248	183
Total, Available-for-sale, Number of Securities in a Loss Position \| security	251	275
Available-for-sale Debt Securities, Less than 12 Months, Fair Value	$ 1,570	$ 156,136
Available-for-sale Debt Securities, 12 Months or More, Fair Value	397,201	316,766
Available-for-sale Debt Securities, Total	398,771	472,902
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months	11	9,312
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	51,516	57,060
Available-for-sale Debt Securities Unrealized losses, Total	$ 51,527	$ 66,372
Held to Maturity, Debt Securities
Held to Maturity, Less Than 12 Months, Number of Securities in a Loss Position \| security	2	6
Held to Maturity, 12 Months or Longer, Number of Securities in a Loss Position \| security	22	21
Total, Held to Maturity, Number of Securities in a Loss Position \| security	24	27
Held-to-maturity Debt (HTM) Securities, Less than 12 Months	$ 1,438
Held-to-maturity Debt (HTM) Securities, 12 months or More	67,365
Held-to-maturity Debt (HTM) Securities, Total	68,803
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Less than 12 Months	(36)
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, 12 Months or More	(13,118)
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Total	$ (13,154)
Held-to-maturity Debt, Less than 12 Months		$ 3,167
Held-to-maturity Debt, 12 Months or More		69,055
Held-to-maturity Fair Value		72,222
Held-to-maturity Debt Unrealized losses, Less than 12 Months		29
Held-to-maturity Debt Unrealized losses, 12 Months or More		14,559
Held-to-maturity Debt Unrealized losses, Total		$ 14,588
U.S. Treasury securities
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security		5
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	43	40
Total, Available-for-sale, Number of Securities in a Loss Position \| security	43	45
Available-for-sale Debt Securities, Less than 12 Months, Fair Value		$ 23,700
Available-for-sale Debt Securities, 12 Months or More, Fair Value	$ 184,057	156,597
Available-for-sale Debt Securities, Total	184,057	180,297
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months		1,887
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	13,863	17,753
Available-for-sale Debt Securities Unrealized losses, Total	$ 13,863	$ 19,640
U.S. government-sponsored enterprises
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security		4
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	2	1
Total, Available-for-sale, Number of Securities in a Loss Position \| security	2	5
Available-for-sale Debt Securities, Less than 12 Months, Fair Value		$ 14,104
Available-for-sale Debt Securities, 12 Months or More, Fair Value	$ 2,152	2,266
Available-for-sale Debt Securities, Total	2,152	16,370
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months		197
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	387	388
Available-for-sale Debt Securities Unrealized losses, Total	$ 387	$ 585
State and municipals, Taxable
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security	1	21
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	65	45
Total, Available-for-sale, Number of Securities in a Loss Position \| security	66	66
Available-for-sale Debt Securities, Less than 12 Months, Fair Value	$ 995	$ 19,919
Available-for-sale Debt Securities, 12 Months or More, Fair Value	56,105	34,464
Available-for-sale Debt Securities, Total	57,100	54,383
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months	6	2,908
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	10,725	10,680
Available-for-sale Debt Securities Unrealized losses, Total	$ 10,731	$ 13,588
State and municipals, Tax-exempt
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security	2	36
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	93	74
Total, Available-for-sale, Number of Securities in a Loss Position \| security	95	110
Available-for-sale Debt Securities, Less than 12 Months, Fair Value	$ 575	$ 27,823
Available-for-sale Debt Securities, 12 Months or More, Fair Value	66,393	56,758
Available-for-sale Debt Securities, Total	66,968	84,581
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months	5	1,661
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	8,613	9,828
Available-for-sale Debt Securities Unrealized losses, Total	$ 8,618	$ 11,489
Held to Maturity, Debt Securities
Held to Maturity, Less Than 12 Months, Number of Securities in a Loss Position \| security	2	3
Held to Maturity, 12 Months or Longer, Number of Securities in a Loss Position \| security	10	10
Total, Held to Maturity, Number of Securities in a Loss Position \| security	12	13
Held-to-maturity Debt (HTM) Securities, Less than 12 Months	$ 1,438
Held-to-maturity Debt (HTM) Securities, 12 months or More	6,209
Held-to-maturity Debt (HTM) Securities, Total	7,647
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Less than 12 Months	(36)
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, 12 Months or More	(624)
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Total	$ (660)
Held-to-maturity Debt, Less than 12 Months		$ 3,150
Held-to-maturity Debt, 12 Months or More		2,906
Held-to-maturity Fair Value		6,056
Held-to-maturity Debt Unrealized losses, Less than 12 Months		29
Held-to-maturity Debt Unrealized losses, 12 Months or More		783
Held-to-maturity Debt Unrealized losses, Total		$ 812
Residential mortgage-backed securities, U.S. government agencies
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security		3
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	3	1
Total, Available-for-sale, Number of Securities in a Loss Position \| security	3	4
Available-for-sale Debt Securities, Less than 12 Months, Fair Value		$ 899
Available-for-sale Debt Securities, 12 Months or More, Fair Value	$ 724	43
Available-for-sale Debt Securities, Total	724	942
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months		39
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	34	1
Available-for-sale Debt Securities Unrealized losses, Total	$ 34	$ 40
Held to Maturity, Debt Securities
Held to Maturity, Less Than 12 Months, Number of Securities in a Loss Position \| security		2
Held to Maturity, 12 Months or Longer, Number of Securities in a Loss Position \| security	4	3
Total, Held to Maturity, Number of Securities in a Loss Position \| security	4	5
Held-to-maturity Debt (HTM) Securities, 12 months or More	$ 12,747
Held-to-maturity Debt (HTM) Securities, Total	12,747
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, 12 Months or More	(2,653)
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Total	$ (2,653)
Held-to-maturity Debt, Less than 12 Months		$ 5
Held-to-maturity Debt, 12 Months or More		14,283
Held-to-maturity Fair Value		14,288
Held-to-maturity Debt Unrealized losses, 12 Months or More		3,016
Held-to-maturity Debt Unrealized losses, Total		$ 3,016
Residential mortgage-backed securities, U.S. government-sponsored enterprises
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security		18
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	32	17
Total, Available-for-sale, Number of Securities in a Loss Position \| security	32	35
Available-for-sale Debt Securities, Less than 12 Months, Fair Value		$ 57,154
Available-for-sale Debt Securities, 12 Months or More, Fair Value	$ 72,671	63,965
Available-for-sale Debt Securities, Total	72,671	121,119
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months		2,029
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	17,264	18,083
Available-for-sale Debt Securities Unrealized losses, Total	$ 17,264	$ 20,112
Held to Maturity, Debt Securities
Held to Maturity, Less Than 12 Months, Number of Securities in a Loss Position \| security		1
Held to Maturity, 12 Months or Longer, Number of Securities in a Loss Position \| security	8	8
Total, Held to Maturity, Number of Securities in a Loss Position \| security	8	9
Held-to-maturity Debt (HTM) Securities, 12 months or More	$ 48,409
Held-to-maturity Debt (HTM) Securities, Total	48,409
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, 12 Months or More	(9,841)
Held-to-maturity Debt (HTM) Securities, Unrealized Loss Position, Total	$ (9,841)
Held-to-maturity Debt, Less than 12 Months		$ 12
Held-to-maturity Debt, 12 Months or More		51,866
Held-to-maturity Fair Value		51,878
Held-to-maturity Debt Unrealized losses, 12 Months or More		10,760
Held-to-maturity Debt Unrealized losses, Total		$ 10,760
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security		4
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	4
Total, Available-for-sale, Number of Securities in a Loss Position \| security	4	4
Available-for-sale Debt Securities, Less than 12 Months, Fair Value		$ 11,584
Available-for-sale Debt Securities, 12 Months or More, Fair Value	$ 11,369
Available-for-sale Debt Securities, Total	11,369	11,584
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months		544
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	360
Available-for-sale Debt Securities Unrealized losses, Total	$ 360	$ 544
Corporate Debt Securities
Available-for-sale Debt Securities
Available-for-sale, Less Than 12 Months, Number of Securities in a Loss Position \| security		1
Available-for-sale, 12 Months or Greater, Number of Securities in a Loss Position \| security	6	5
Total, Available-for-sale, Number of Securities in a Loss Position \| security	6	6
Available-for-sale Debt Securities, Less than 12 Months, Fair Value		$ 953
Available-for-sale Debt Securities, 12 Months or More, Fair Value	$ 3,730	2,673
Available-for-sale Debt Securities, Total	3,730	3,626
Available-for-sale Debt Securities Unrealized losses, Less than 12 Months		47
Available-for-sale Debt Securities Unrealized losses, 12 Months or More	270	327
Available-for-sale Debt Securities Unrealized losses, Total	$ 270	$ 374

Investment securities (Details)

Investment securities (Details) - USD ($) $ in Thousands	12 Months Ended
Investment securities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2023
Summary of significant accounting policies
Held-to-maturity, credit loss	$ 0		$ 0
Available for sale, credit loss	0		$ 0
Other-than-temporary impairments recognized	$ 0	$ 0

Loans, net and allowance for _3

Loans, net and allowance for credit losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Net deferred loan costs	$ 400	$ 300
Loans outstanding	3,100	3,200
Advances of loans receivable	1,300	1,100
Repayments of loans receivable	1,400	1,100
Number of related party loans classified as nonaccrual, past due, or restructured	0	0
Deposits from related parties	7,800	6,800
Net loans	2,828,002
Federal Home Loan Bank Advances [Member]
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	1,200
Federal Reserve Bank Advances [Member]
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	246,100
Asset Pledged as Collateral [Member] \| Federal Home Loan Bank Advances [Member]
Net loans	1,800,000	1,600,000
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	1,200,000	$ 1,200,000
Asset Pledged as Collateral [Member] \| Federal Reserve Bank Advances [Member]
Net loans	$ 365,800

Loans, net and allowance for _4

Loans, net and allowance for credit losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable
Loans		$ 2,730,116
Loans	$ 2,849,897
Commercial
Accounts, Notes, Loans and Financing Receivable
Loans		433,048
Loans	368,411
Taxable
Accounts, Notes, Loans and Financing Receivable
Loans		433,048
Loans	368,411
Non-taxable
Accounts, Notes, Loans and Financing Receivable
Loans		166,210
Loans	175,304
Commercial and Industrial
Accounts, Notes, Loans and Financing Receivable
Loans		599,258
Loans	543,715
Municipal
Accounts, Notes, Loans and Financing Receivable
Loans		166,210
Loans	175,304
Real estate
Accounts, Notes, Loans and Financing Receivable
Loans		2,040,555
Loans	2,223,921
Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans		1,709,827
Loans	1,863,118
Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans		330,728
Loans	360,803
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans		90,303
Loans	82,261
Indirect Auto
Accounts, Notes, Loans and Financing Receivable
Loans		76,461
Loans	75,389
Consumer Other
Accounts, Notes, Loans and Financing Receivable
Loans		$ 13,842
Loans	$ 6,872

Loans, net and allowance for _5

Loans, net and allowance for credit losses- Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Recorded Investment, Past Due.
Total Due	$ 2,849,897
Loans		$ 2,730,116
Loans > 90 Days and Accruing	986	748
Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		3,986
Total Due	5,209
30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		2,091
Total Due	2,730
60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		367
Total Due	495
Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due		1,528
Total Due	1,984
Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		2,726,130
Total Due	2,844,688
Commercial
Financing Receivable, Recorded Investment, Past Due.
Total Due	368,411
Loans		433,048
Commercial \| Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		261
Total Due	218
Commercial \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		137
Total Due	53
Commercial \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		38
Total Due	155
Commercial \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due		86
Total Due	10
Commercial \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		432,787
Total Due	368,193
Municipal
Financing Receivable, Recorded Investment, Past Due.
Total Due	175,304
Loans		166,210
Municipal \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		166,210
Total Due	175,304
Commercial real estate
Financing Receivable, Recorded Investment, Past Due.
Total Due	1,863,118
Loans		1,709,827
Commercial real estate \| Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		438
Total Due	436
Commercial real estate \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		102
Total Due	152
Commercial real estate \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		2
Total Due	5
Commercial real estate \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due		334
Total Due	279
Commercial real estate \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		1,709,389
Total Due	1,862,682
Residential real estate
Financing Receivable, Recorded Investment, Past Due.
Total Due	360,803
Loans		330,728
Loans > 90 Days and Accruing	986	748
Loans in the formal process of foreclosure	300	600
Residential real estate \| Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		2,278
Total Due	3,116
Residential real estate \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		1,162
Total Due	1,456
Residential real estate \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		128
Total Due	50
Residential real estate \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due		988
Total Due	1,610
Residential real estate \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		328,450
Total Due	357,687
Consumer
Financing Receivable, Recorded Investment, Past Due.
Total Due	82,261
Loans		90,303
Consumer \| Financial Assets, Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		1,009
Total Due	1,439
Consumer \| 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		690
Total Due	1,069
Consumer \| 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		199
Total Due	285
Consumer \| Greater than 90 Days
Financing Receivable, Recorded Investment, Past Due.
Total Due		120
Total Due	85
Consumer \| Financial Assets, Not Past Due
Financing Receivable, Recorded Investment, Past Due.
Total Due		$ 89,294
Total Due	$ 80,822

Loans, net and allowance for _6

Loans, net and allowance for credit losses - Nonaccrual Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	$ 3,962	$ 2,035
Nonaccrual with an Allowance for Credit Losses	1,180
Nonaccrual with no Allowance for Credit Losses	2,782
Interest Income Recorded for Nonaccrual Loans	449
Commercial
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	10	86
Nonaccrual with an Allowance for Credit Losses	10
Commercial real estate
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	2,974	1,155
Nonaccrual with an Allowance for Credit Losses	1,170
Nonaccrual with no Allowance for Credit Losses	1,804
Residential real estate
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	760	562
Nonaccrual with no Allowance for Credit Losses	760
Consumer
Financing Receivable, Allowance for Credit Losses
Total Nonaccrual Loans	218	$ 232
Nonaccrual with no Allowance for Credit Losses	$ 218

Loans, net and allowance for _7

Loans, net and allowance for credit losses - Summarized Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule of Impaired Financing Receivables
Recorded Investment, With no related allowance, Total	$ 3,893	$ 3,546
Unpaid Principal Balance, With no related allowance, Total	5,052	4,822
Average Recorded Investment, With no related allowance, Total	4,126	4,799
Interest Income Recognized, With no related allowance, Total	94	54
Recorded Investment, With an allowance recorded, Total	260	955
Unpaid Principal Balance, With an allowance recorded, Total	264	985
Related Allowance, With an allowance recorded, Total	40	175
Average Recorded Investment, With an allowance recorded, Total	313	2,329
Interest Income Recognized, With an allowance recorded, Total	14	50
Recorded Investment, Total	4,153	4,501
Unpaid Principal Balance, Total	5,316	5,807
Average Recorded Investment, Total	4,439	7,128
Interest Income Recognized, Total	108	104
Commercial
Schedule of Impaired Financing Receivables
Recorded Investment, With no related allowance, Total	78	158
Unpaid Principal Balance, With no related allowance, Total	421	481
Average Recorded Investment, With no related allowance, Total	119	964
Interest Income Recognized, With no related allowance, Total	7	13
Recorded Investment, With an allowance recorded, Total	20	41
Unpaid Principal Balance, With an allowance recorded, Total	20	41
Related Allowance, With an allowance recorded, Total	19	40
Average Recorded Investment, With an allowance recorded, Total	27	1,091
Interest Income Recognized, With an allowance recorded, Total	2	15
Recorded Investment, Total	98	199
Unpaid Principal Balance, Total	441	522
Average Recorded Investment, Total	146	2,055
Interest Income Recognized, Total	9	28
Commercial real estate
Schedule of Impaired Financing Receivables
Recorded Investment, With no related allowance, Total	2,063	2,376
Unpaid Principal Balance, With no related allowance, Total	2,654	3,120
Average Recorded Investment, With no related allowance, Total	2,753	2,719
Interest Income Recognized, With no related allowance, Total	59	22
Recorded Investment, With an allowance recorded, Total		513
Unpaid Principal Balance, With an allowance recorded, Total		543
Related Allowance, With an allowance recorded, Total		109
Average Recorded Investment, With an allowance recorded, Total		802
Interest Income Recognized, With an allowance recorded, Total		22
Recorded Investment, Total	2,063	2,889
Unpaid Principal Balance, Total	2,654	3,663
Average Recorded Investment, Total	2,753	3,521
Interest Income Recognized, Total	59	44
Residential real estate
Schedule of Impaired Financing Receivables
Recorded Investment, With no related allowance, Total	1,520	873
Unpaid Principal Balance, With no related allowance, Total	1,733	1,073
Average Recorded Investment, With no related allowance, Total	1,036	1,016
Interest Income Recognized, With no related allowance, Total	28	19
Recorded Investment, With an allowance recorded, Total	240	401
Unpaid Principal Balance, With an allowance recorded, Total	244	401
Related Allowance, With an allowance recorded, Total	21	26
Average Recorded Investment, With an allowance recorded, Total	286	436
Interest Income Recognized, With an allowance recorded, Total	12	13
Recorded Investment, Total	1,760	1,274
Unpaid Principal Balance, Total	1,977	1,474
Average Recorded Investment, Total	1,322	1,452
Interest Income Recognized, Total	40	32
Consumer
Schedule of Impaired Financing Receivables
Recorded Investment, With no related allowance, Total	232	139
Unpaid Principal Balance, With no related allowance, Total	244	148
Average Recorded Investment, With no related allowance, Total	218	100
Recorded Investment, Total	232	139
Unpaid Principal Balance, Total	244	148
Average Recorded Investment, Total	$ 218	$ 100

Loans, net and allowance for _8

Loans, net and allowance for credit losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable
2023	$ 212,647
2022	726,011
2021	693,987
2020	216,917
2019	218,872
Prior	549,793
Revolving Loans Amortized Cost Basis	217,413
Revolving Loans Converted to Term	14,257
Total	2,849,897
Loans		$ 2,730,116
Gross charge-offs, 2022	95
Gross charge-offs, 2021	101
Gross charge-offs, 2020	90
Gross charge-offs, 2019	49
Gross charge-offs, Prior	2,686
Gross charge-offs, Revolving Loans Amortized Cost Basis	4
Total	3,025
Commercial
Accounts, Notes, Loans and Financing Receivable
2023	9,871
2022	39,067
2021	28,351
2020	29,966
2019	44,584
Prior	82,773
Revolving Loans Amortized Cost Basis	133,149
Revolving Loans Converted to Term	650
Total	368,411
Loans		433,048
Gross charge-offs, 2020	21
Gross charge-offs, Prior	33
Gross charge-offs, Revolving Loans Amortized Cost Basis	4
Total	58
Municipal
Accounts, Notes, Loans and Financing Receivable
2023	1,888
2022	48,095
2021	94,791
2020	10,804
2019	16
Prior	19,652
Revolving Loans Amortized Cost Basis	58
Total	175,304
Loans		166,210
Commercial real estate
Accounts, Notes, Loans and Financing Receivable
2023	156,446
2022	556,391
2021	493,026
2020	143,228
2019	154,483
Prior	359,427
Revolving Loans Converted to Term	117
Total	1,863,118
Loans		1,709,827
Gross charge-offs, Prior	2,598
Total	2,598
Residential real estate
Accounts, Notes, Loans and Financing Receivable
2023	17,389
2022	52,093
2021	65,280
2020	27,447
2019	16,652
Prior	84,940
Revolving Loans Amortized Cost Basis	83,512
Revolving Loans Converted to Term	13,490
Total	360,803
Loans		330,728
Consumer
Accounts, Notes, Loans and Financing Receivable
2023	27,053
2022	30,365
2021	12,539
2020	5,472
2019	3,137
Prior	3,001
Revolving Loans Amortized Cost Basis	694
Total	82,261
Loans		90,303
Gross charge-offs, 2022	95
Gross charge-offs, 2021	101
Gross charge-offs, 2020	69
Gross charge-offs, 2019	49
Gross charge-offs, Prior	55
Total	369
Pass
Accounts, Notes, Loans and Financing Receivable
Loans		2,708,780
Pass \| Commercial
Accounts, Notes, Loans and Financing Receivable
2023	9,856
2022	38,172
2021	28,127
2020	29,966
2019	44,551
Prior	82,190
Revolving Loans Amortized Cost Basis	131,536
Revolving Loans Converted to Term	650
Total	365,048
Loans		424,411
Pass \| Municipal
Accounts, Notes, Loans and Financing Receivable
2023	1,888
2022	48,095
2021	94,791
2020	10,804
2019	16
Prior	19,652
Revolving Loans Amortized Cost Basis	58
Total	175,304
Loans		166,210
Pass \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
2023	156,277
2022	553,754
2021	491,506
2020	143,068
2019	153,426
Prior	351,142
Revolving Loans Converted to Term	117
Total	1,849,290
Loans		1,699,041
Pass \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
2023	17,385
2022	52,093
2021	65,280
2020	27,118
2019	16,652
Prior	84,652
Revolving Loans Amortized Cost Basis	83,507
Revolving Loans Converted to Term	13,490
Total	360,177
Loans		329,098
Pass \| Consumer
Accounts, Notes, Loans and Financing Receivable
2023	27,053
2022	30,307
2021	12,460
2020	5,441
2019	3,107
Prior	2,981
Revolving Loans Amortized Cost Basis	694
Total	82,043
Loans		90,020
Special Mention
Accounts, Notes, Loans and Financing Receivable
Loans		15,331
Special Mention \| Commercial
Accounts, Notes, Loans and Financing Receivable
2022	876
2021	182
Prior	49
Revolving Loans Amortized Cost Basis	832
Total	1,939
Loans		7,822
Special Mention \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
2022	1,299
2019	360
Prior	2,761
Total	4,420
Loans		7,509
Substandard
Accounts, Notes, Loans and Financing Receivable
Loans		6,005
Substandard \| Commercial
Accounts, Notes, Loans and Financing Receivable
2023	15
2022	19
2021	42
2019	33
Prior	534
Revolving Loans Amortized Cost Basis	781
Total	1,424
Loans		815
Substandard \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
2023	169
2022	1,338
2021	1,520
2020	160
2019	697
Prior	5,524
Total	9,408
Loans		3,277
Substandard \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
2023	4
2020	329
Prior	288
Revolving Loans Amortized Cost Basis	5
Total	626
Loans		1,630
Substandard \| Consumer
Accounts, Notes, Loans and Financing Receivable
2022	58
2021	79
2020	31
2019	30
Prior	20
Total	$ 218
Loans		$ 283

Loans, net and allowance for _9

Loans, net and allowance for credit losses - Loan Modifications and Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cumulative effect adjustment increasing stockholders' equity	$ 340,422	$ 315,350	$ 340,126	$ 316,877
Cumulative impact of adoption \| Accounting Standards Update 2016-13
Cumulative effect adjustment increasing stockholders' equity		$ 2,364

Loans, net and allowance for_10

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	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jan. 01, 2023
Allowance for loan losses:
Beginning balance	$ 27,472	$ 28,383	$ 27,344
Charge-offs		(787)	(956)
Charge-offs	(3,025)
Recoveries		325	245
Recoveries	165
Provisions (credits)	566	(449)	1,750
Ending balance		27,472	28,383
Ending balance	21,895
Ending balance: individually evaluated for impairment		40	175
Ending balance: individually evaluated for impairment	31
Ending balance: collectively evaluated for impairment		27,432	28,208
Ending balance: collectively evaluated for impairment	21,864
Loans receivable:
Loans	3,025
Loans	2,849,897
Ending balance		2,730,116	2,329,173
Ending balance: individually evaluated for impairment		3,921	4,362
Ending balance: collectively evaluated for impairment	2,845,167	2,726,195	2,324,811
ASC 326
Allowance for loan losses:
Beginning balance	(3,283)
Ending balance		(3,283)
Cumulative impact of adoption \| ASC 326
Allowance for loan losses:
Beginning Balance	24,189
Ending balance		24,189		$ 3,000
Real estate
Loans receivable:
Ending balance: individually evaluated for impairment	4,730
Non-real estate
Loans receivable:
Ending balance: individually evaluated for impairment	10
Commercial
Allowance for loan losses:
Beginning balance	4,365	6,498	7,849
Charge-offs		(161)	(492)
Charge-offs	(58)
Recoveries		40	89
Recoveries	11
Provisions (credits)	(363)	(2,012)	(948)
Ending balance		4,365	6,498
Ending balance	2,272
Ending balance: individually evaluated for impairment		19	40
Ending balance: individually evaluated for impairment	10
Ending balance: collectively evaluated for impairment		4,346	6,458
Ending balance: collectively evaluated for impairment	2,262
Loans receivable:
Loans	58
Loans	368,411
Ending balance		433,048	554,547
Ending balance: individually evaluated for impairment		98	199
Ending balance: collectively evaluated for impairment	368,404	432,950	554,348
Commercial \| ASC 326
Allowance for loan losses:
Beginning balance	(1,683)
Ending balance		(1,683)
Commercial \| Cumulative impact of adoption \| ASC 326
Allowance for loan losses:
Beginning Balance	2,682
Ending balance		2,682
Commercial \| Real estate
Loans receivable:
Ending balance: individually evaluated for impairment	7
Commercial \| Non-real estate
Loans receivable:
Ending balance: individually evaluated for impairment	10
Municipal
Allowance for loan losses:
Beginning balance	1,247	1,955	885
Provisions (credits)	(1,206)	(708)	1,070
Ending balance		1,247	1,955
Ending balance	788
Ending balance: collectively evaluated for impairment		1,247	1,955
Ending balance: collectively evaluated for impairment	788
Loans receivable:
Loans	175,304
Ending balance		166,210	58,580
Ending balance: collectively evaluated for impairment	175,304	166,210	58,580
Municipal \| ASC 326
Allowance for loan losses:
Beginning balance	747
Ending balance		747
Municipal \| Cumulative impact of adoption \| ASC 326
Allowance for loan losses:
Beginning Balance	1,994
Ending balance		1,994
Commercial real estate
Allowance for loan losses:
Beginning balance	17,915	15,928	14,559
Charge-offs		(284)	(252)
Charge-offs	(2,598)
Recoveries		110	68
Recoveries	1
Provisions (credits)	2,179	2,161	1,553
Ending balance		17,915	15,928
Ending balance	14,153
Ending balance: individually evaluated for impairment			109
Ending balance: individually evaluated for impairment	21
Ending balance: collectively evaluated for impairment		17,915	15,819
Ending balance: collectively evaluated for impairment	14,132
Loans receivable:
Loans	2,598
Loans	1,863,118
Ending balance		1,709,827	1,343,539
Ending balance: individually evaluated for impairment		2,063	2,890
Ending balance: collectively evaluated for impairment	1,860,144	1,707,764	1,340,649
Commercial real estate \| ASC 326
Allowance for loan losses:
Beginning balance	(3,344)
Ending balance		(3,344)
Commercial real estate \| Cumulative impact of adoption \| ASC 326
Allowance for loan losses:
Beginning Balance	14,571
Ending balance		14,571
Commercial real estate \| Real estate
Loans receivable:
Ending balance: individually evaluated for impairment	2,974
Residential real estate
Allowance for loan losses:
Beginning balance	3,072	3,209	3,129
Charge-offs		(31)	(24)
Recoveries		4	7
Recoveries	24
Provisions (credits)	(281)	(110)	97
Ending balance		3,072	3,209
Ending balance	3,782
Ending balance: individually evaluated for impairment		21	26
Ending balance: collectively evaluated for impairment		3,051	3,183
Ending balance: collectively evaluated for impairment	3,782
Loans receivable:
Loans	360,803
Ending balance		330,728	297,624
Ending balance: individually evaluated for impairment		1,760	1,273
Ending balance: collectively evaluated for impairment	359,054	328,968	296,351
Residential real estate \| ASC 326
Allowance for loan losses:
Beginning balance	967
Ending balance		967
Residential real estate \| Cumulative impact of adoption \| ASC 326
Allowance for loan losses:
Beginning Balance	4,039
Ending balance		4,039
Residential real estate \| Real estate
Loans receivable:
Ending balance: individually evaluated for impairment	1,749
Consumer
Allowance for loan losses:
Beginning balance	873	793	922
Charge-offs		(311)	(188)
Charge-offs	(369)
Recoveries		171	81
Recoveries	129
Provisions (credits)	237	220	(22)
Ending balance		873	793
Ending balance	900
Ending balance: collectively evaluated for impairment		873	793
Ending balance: collectively evaluated for impairment	900
Loans receivable:
Loans	369
Loans	82,261
Ending balance		90,303	74,883
Ending balance: collectively evaluated for impairment	82,261	90,303	$ 74,883
Consumer \| ASC 326
Allowance for loan losses:
Beginning balance	30
Ending balance		30
Consumer \| Cumulative impact of adoption \| ASC 326
Allowance for loan losses:
Beginning Balance	$ 903
Ending balance		$ 903

Loans, net and allowance for_11

Loans, net and allowance for credit losses - Allowance for Credit Losses on Off Balance Sheet Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Losses
Balance	$ 179	$ 137	$ 122
Credit recorded in noninterest expense	(406)	42	15
Total allowance for credit losses on off balance sheet commitments	43	$ 179	$ 137
Cumulative impact of adoption
Financing Receivable, Allowance for Credit Losses
Total allowance for credit losses on off balance sheet commitments	$ 270

Off balance sheet financial i_3

Off balance sheet financial instruments - Summary of Contractual Amounts of Off-balance Sheet Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Off balance sheet financial instruments
Commitments to extend credit	$ 435,015	$ 553,337
Unused portions of lines of credit	90,407	78,406
Standby letters of credit	62,155	57,626
Total contractual amounts of off-balance sheet commitments	$ 587,577	$ 689,369

Off balance sheet financial i_4

Off balance sheet financial instruments - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Off balance sheet financial instruments
Expiration period of standby letters	12 months
Amount of standby letters of credit	$ 55.9	$ 53.7

Premises and equipment, net - S

Premises and equipment, net - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Premises and equipment, net
Gross premises and equipment	$ 100,022	$ 91,773
Less: accumulated depreciation	38,746	36,106
Net premises and equipment	61,276	55,667
Land
Premises and equipment, net
Gross premises and equipment	7,302	7,302
Premises and leasehold improvements
Premises and equipment, net
Gross premises and equipment	60,266	55,865
Right-of-use assets
Premises and equipment, net
Gross premises and equipment	10,576	7,980
Furniture, fixtures and equipment
Premises and equipment, net
Gross premises and equipment	$ 21,878	$ 20,626

Operating lease commitments a_3

Operating lease commitments and contingencies (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)
Operating leases
Options to renew	true
Renewal term	5 years
Weighted average remaining lease term	19 years 4 months 24 days	17 years 1 month 6 days
Weighted-average discount rate	3.61%	3%
Right-of-use assets	$ 10,600	$ 8,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Lease liabilities for operating leases	$ 10,960	$ 8,300
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities	Other Liabilities
Number of operating lease added \| item	2	0
Number of operating lease not renewed \| item	1
Rent expense	$ 1,000	$ 1,000	$ 760
Minimum
Operating leases
Remaining renewal terms	5 years
Discount rate	1.60%	1.60%
Maximum
Operating leases
Remaining renewal terms	30 years
Discount rate	5.25%	3.85%

Operating lease commitments a_4

Operating lease commitments and contingencies - Summary of Future Minimum Rental Commitments Under Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Operating lease commitments and contingencies
2024	$ 838
2025	858
2026	862
2027	789
2028	809
Thereafter	11,942
Total future minimum lease payments	16,098
Less amount representing interest	(5,138)
Present value of future minimum lease payments	$ 10,960	$ 8,300

Other assets - Components of Ot

Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other real estate owned		$ 121
Mortgage servicing rights	$ 870	914
Prepaid shares tax	949	48
Prepaid pension	3,764	2,314
Prepaid expenses	4,840	3,038
Restricted equity securities (FHLB and other)	5,180	9,630
Investment in low income housing partnership	5,015	5,446
Interest rate floor and swaps	19,833	22,196
Other assets	2,353	2,765
Total	42,249	46,071
Interest rate swaps
Interest rate floor and swaps	$ 19,278	21,794
Interest rate floor
Interest rate floor and swaps		$ 1

Other assets - Unpaid Principal

Other assets - Unpaid Principal Balances (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Other assets
Unpaid principal balances of mortgage loans serviced for others	$ 134.9	$ 144.7

Deposits - Components of Intere

Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposits.
Money market accounts	$ 782,243	$ 685,323
NOW accounts	796,426	772,712
Savings accounts	429,011	523,931
Time deposits less than $250	505,409	199,136
Time deposits $250 or more	121,265	92,731
Total interest-bearing deposits	2,634,354	2,273,833
Noninterest-bearing deposits	644,683	772,765
Total deposits	$ 3,279,037	$ 3,046,598

Deposits - Schedule of Maturiti

Deposits - Schedule of Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Deposits.
2024	$ 331,713
2025	53,168
2026	98,471
2027	46,401
2028	92,860
Thereafter	4,061
Total	$ 626,674

Deposits (Details)

Deposits (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Deposits.
Aggregate amount of deposits reclassified as loans	$ 0.2	$ 0.6
Time deposits less than $250,000.	$ 261	$ 23.6

Short-term borrowings (Details)

Short-term borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
Short-term borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Short-term borrowings
Ending Balance	$ 17,590	$ 114,930
Average Balance	38,331	42,680
Maximum Month-End Balance	$ 186,470	$ 142,075
Weighted Average Rate for the Year	5.01%	2.58%
Weighted Average Rate at End of Year	5.35%	4.43%
Other borrowings
Short-term borrowings
Ending Balance	$ 17,590	$ 14,530
Average Balance	19,160	10,033
Maximum Month-End Balance	$ 28,470	$ 16,100
Weighted Average Rate for the Year	5.54%	2.10%
Weighted Average Rate at End of Year	5.35%	4.33%
FHLB Advances
Short-term borrowings
Ending Balance		$ 100,400
Average Balance	$ 19,171	32,647	$ 13,973
Maximum Month-End Balance	$ 158,000	$ 125,975	$ 50,000
Weighted Average Rate for the Year	4.48%	2.73%	0.56%
Weighted Average Rate at End of Year		4.45%

Short-term borrowings - Additio

Short-term borrowings - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Short-term borrowings
Maximum borrowing capacity	$ 18,000	$ 18,000
Outstanding amount in borrowings	0	0
Net loans	2,828,002
Total investment securities	483,876	568,992
FHLB Advances
Short-term borrowings
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	1,200
Federal Reserve Bank Advances
Short-term borrowings
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	246,100
Assets pledged as collateral \| FHLB Advances
Short-term borrowings
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	1,200,000	1,200,000
Net loans	1,800,000	1,600,000
Assets pledged as collateral \| Federal Reserve Bank Advances
Short-term borrowings
Net loans	365,800
Assets pledged as collateral \| Borrow in Custody Program
Short-term borrowings
Net loans	365,800	349,900
Assets pledged as collateral \| Bank Term Funding Program
Short-term borrowings
Total investment securities	191,000
Assets pledged as collateral \| Discount Window
Short-term borrowings
Total investment securities	11	24
Federal Reserve Bank Discount Window
Short-term borrowings
Maximum borrowing capacity	257,400
Bank Term Funding Program
Short-term borrowings
Maximum borrowing capacity	191,000
Borrow in Custody Program
Short-term borrowings
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	246,100	$ 232,200
Peoples Bank
Short-term borrowings
Maximum borrowing capacity	1,200,000
Outstanding amount in borrowings	25,000
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits	$ 345,400

Long-term debt - Long-term debt

Long-term debt - Long-term debt advances (Details) - USD ($) $ in Thousands	Dec. 31, 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%

Long-term debt - Maturities of

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

Long-term debt - Fixed and adju

Long-term debt - Fixed and adjustable rate information (Details) - item	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Long-term debt
Number of FHLB advances entered	2	0

Subordinated debt (Details)

Subordinated debt (Details) - Subordinate 2020 Notes Due 2030 $ in Millions	Jun. 01, 2020 USD ($)
Debt Instrument
Aggregate principal amount	$ 33
Rate of interest for first five years	5.375%
Duration interest rate in effect	5 years
Percentage of debt redeemed	100%
Minimum
Debt Instrument
Floated interest rate	4.75%
Number of days notice to redeem debt	10 days

Fair value of financial instr_3

Fair value of financial instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	$ 399,025	$ 477,813
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	184,057	180,297
U.S. government-sponsored enterprises
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	2,152	16,370
State and municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	57,100	55,358
State and municipals, Tax-exempt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	67,124	88,407
Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	3,730	3,626
Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	724	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	84,040	132,703
Common equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	98	110
Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value		1
Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	19,278	21,794
Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value	(18,808)	(21,466)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	184,155	180,407
Level 1 \| U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	184,057	180,297
Level 1 \| Common equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	98	110
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	214,870	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	2,152	16,370
Level 2 \| State and municipals, Taxable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	57,100	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	67,124	88,407
Level 2 \| Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	3,730	3,626
Level 2 \| Mortgage-backed Securities, U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	724	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	84,040	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		1
Level 2 \| Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value	19,278	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	$ (18,808)	(21,466)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Common equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Interest rate floor - other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Interest rate swap-other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value
Level 3 \| Interest rate swap-other liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value

Fair value of financial instr_4

Fair value of financial instruments - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 4,740	$ 220
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Impaired loans	$ 4,740	$ 220

Fair value of financial instr_5

Fair value of financial instruments - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - Impaired Loans - Level 3 - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value Inputs, Assets, Quantitative Information
Assets measured at fair value	$ 4,740	$ 220
Minimum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	22.80%	21.60%
Range and weighted average of liquidation expenses	3%	3%
Maximum
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	82.40%	97%
Range and weighted average of liquidation expenses	6%	6%
Weighted Average
Fair Value Inputs, Assets, Quantitative Information
Range and weighted average of appraisal adjustments	63.60%	77.70%
Range and weighted average of liquidation expenses	5.20%	4.90%

Fair value of financial instr_6

Fair value of financial instruments - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Investment securities:
Available-for-sale	$ 398,927	$ 477,703
Common equity securities	98	110
Held-to-maturity	71,698	76,563
Mortgage servicing rights	870	914
Financial liabilities:
Subordinated debentures	33,000	33,000
Carrying Value
Financial assets:
Cash and due from banks	187,365	37,868
Investment securities:
Available-for-sale	398,927	477,703
Common equity securities	98	110
Held-to-maturity	84,851	91,179
Net loans	2,828,002	2,702,644
Accrued interest receivable	12,734	11,715
Mortgage servicing rights	870	914
Restricted equity securities (FHLB and other)	5,180	9,630
Interest rate floor		1
Interest rate swaps	19,278	21,794
Total assets	3,537,555	3,353,558
Financial liabilities:
Deposits	3,279,037	3,046,598
Short-term borrowings	17,590	114,930
Long-term debt	25,000	555
Subordinated debentures	33,000	33,000
Accrued interest payable	5,765	903
Interest rate swap	18,808	21,466
Total liabilities	3,379,200	3,217,452
Fair Value
Financial assets:
Cash and due from banks	187,365	37,868
Investment securities:
Available-for-sale	398,927	477,703
Common equity securities	98	110
Held-to-maturity	71,698	76,563
Net loans	2,593,151	2,562,780
Accrued interest receivable	12,734	11,715
Mortgage servicing rights	1,745	1,762
Restricted equity securities (FHLB and other)	5,180	9,630
Interest rate floor		1
Interest rate swaps	19,278	21,794
Total assets	3,290,426	3,199,926
Financial liabilities:
Deposits	3,274,774	3,035,615
Short-term borrowings	17,590	114,743
Long-term debt	24,924	555
Subordinated debentures	45,504	53,998
Accrued interest payable	5,765	903
Interest rate swap	18,808	21,466
Total liabilities	3,387,365	3,227,280
Level 1
Financial assets:
Cash and due from banks	187,365	37,868
Investment securities:
Available-for-sale	184,057	180,297
Common equity securities	98	110
Level 2
Investment securities:
Available-for-sale	214,870	294,706
Held-to-maturity	71,698	76,563
Accrued interest receivable	12,734	11,715
Mortgage servicing rights	1,745	1,762
Restricted equity securities (FHLB and other)	5,180	9,630
Interest rate floor		1
Interest rate swaps	19,278	21,794
Financial liabilities:
Deposits	3,274,774	3,035,615
Short-term borrowings	17,590	114,743
Long-term debt	24,924	555
Subordinated debentures	45,504	53,998
Accrued interest payable	5,765	903
Interest rate swap	18,808	21,466
Level 3
Investment securities:
Net loans	$ 2,593,151	$ 2,562,780

Derivatives and hedging activ_3

Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2023 USD ($) security
Derivatives, Fair Value
Asset Derivatives	$ 22,196,000	$ 19,833,000
Liability Derivatives	21,466,000	20,633,000
Cash collateral	14,530,000	17,590,000
Net Amounts of Assets presented in the Balance Sheet	21,466,000	20,633,000
Interest income
Derivatives, Fair Value
Amount of gain or (loss) reclassified as a increase to interest income	276,000
Interest rate swaps
Derivatives, Fair Value
Asset Derivatives	21,794,000	19,278,000
Interest rate floor
Derivatives, Fair Value
Asset Derivatives	1,000
Credit-risk contract
Derivatives, Fair Value
Cash collateral	0	2,500,000
Net Amounts of Assets presented in the Balance Sheet	2,000	2,700,000
Derivatives designated as hedging instruments \| Other Assets.
Derivatives, Fair Value
Asset Derivatives	1,000
Derivatives designated as hedging instruments \| Other Liabilities.
Derivatives, Fair Value
Liability Derivatives		1,270,000
Derivatives designated as hedging instruments \| Interest rate products \| Other Assets.
Derivatives, Fair Value
Notional amount		150,000,000
Asset Derivatives	1,000
Derivatives designated as hedging instruments \| Interest rate products \| Other Liabilities.
Derivatives, Fair Value
Liability Derivatives		1,270,000
Derivatives not designated as hedging instruments \| Other Assets.
Derivatives, Fair Value
Asset Derivatives	22,195,000	19,836,000
Derivatives not designated as hedging instruments \| Other Liabilities.
Derivatives, Fair Value
Liability Derivatives	21,466,000	19,364,000
Derivatives not designated as hedging instruments \| Interest rate products
Derivatives, Fair Value
Notional amount		230,323,000
Derivatives not designated as hedging instruments \| Interest rate products \| Other Assets.
Derivatives, Fair Value
Asset Derivatives	22,195,000	19,833,000
Derivatives not designated as hedging instruments \| Interest rate products \| Other Liabilities.
Derivatives, Fair Value
Notional amount		230,323,000
Liability Derivatives	21,466,000	19,364,000
Derivatives not designated as hedging instruments \| Other
Derivatives, Fair Value
Notional amount		8,403,000
Derivatives not designated as hedging instruments \| Other \| Other Assets.
Derivatives, Fair Value
Asset Derivatives		3,000
Derivatives not designated as hedging instruments \| Other \| Other Liabilities.
Derivatives, Fair Value
Notional amount		$ 7,408,000
Derivatives not designated as hedging instruments \| Risk participation agreements
Derivatives, Fair Value
Notional amount	1,500,000
Derivatives not designated as hedging instruments \| Interest rate swaps
Derivatives, Fair Value
Number of instruments held \| security		109
Notional amount	187,300,000	$ 476,500,000
Derivatives not designated as hedging instruments \| Interest rate floor
Derivatives, Fair Value
Notional amount	$ 25,000,000

Derivatives and hedging activ_4

Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments, Gain (Loss)
Amount of Gain (Loss) Recognized in OCI Included Component	$ (871)	$ (47)
Interest income
Derivative Instruments, Gain (Loss)
Amount of Gain Reclassified from Accumulated OCI into Income	(48)	212
Cash Flow Hedge
Derivative Instruments, Gain (Loss)
Amount of (Loss) Recognized in OCI on Derivative	(1)
Amount of (Loss) Recognized in OCI Excluded Component	(1)
Amount of Gain Reclassified from Accumulated OCI into Income	(48)
Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component	(48)
Cash Flow Hedge \| Interest rate products \| Interest income
Derivative Instruments, Gain (Loss)
Amount of (Loss) Recognized in OCI on Derivative	(1)	(515)
Amount of Gain (Loss) Recognized in OCI Included Component		(497)
Amount of (Loss) Recognized in OCI Excluded Component	(1)	(18)
Amount of Gain Reclassified from Accumulated OCI into Income	(48)	212
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component		276
Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component	$ (48)	$ (64)

Derivatives and hedging activ_5

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	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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.	$ (824)	$ (728)	$ (322)
The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships
Amount of (loss) reclassified from AOCI into income - Excluded Component	$ (48)	$ (64)
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest Income (Expense), Net	Interest Income (Expense), Net
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.	$ 142	$ 212
The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships
Hedged items	871
Derivatives designated as hedging instruments	(681)
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income	$ (48)	212
Amount of gain reclassified from AOCI into income - Included Component		$ 276

Derivatives and hedging activ_6

Derivatives and hedging activities - Effect of Derivative Instruments Not Designated as Hedging Instruments on the Statements of Income and Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Fee Income \| Fee Income
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ 652	$ 106
Derivatives not designated as hedging instruments
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	(268)	521
Derivatives not designated as hedging instruments \| Interest Rate Products \| Other income / (expense)
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	(262)	516
Derivatives not designated as hedging instruments \| Other Contracts \| Other income / (expense)
Derivative Instruments, Gain (Loss)
Amount of Gain Recognized in Income	$ (6)	$ 5

Derivatives and hedging activ_7

Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Offsetting of Derivative Assets
Gross Amounts of Recognized Assets	$ 19,833	$ 22,196
Net Amounts of Assets presented in the Balance Sheet	19,833	22,196
Gross Amounts Not Offset presented in the Balance Sheet - Cash Collateral Received	17,590	14,530
Net Amount	2,243	7,666
Offsetting of Derivative Liabilities
Gross Amounts of Recognized Liabilities	20,633	21,466
Net Amounts of Assets presented in the Balance Sheet	20,633	21,466
Gross Amounts Not Offset presented in the Balance Sheet - Financial Instruments	20,633	$ 21,466
Cash collateral paid but not offset	$ 2,450

Derivatives and hedging activ_8

Derivatives and hedging activities - Credit-risk-related Contingent Features (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Derivatives
Derivative Liability	$ 20,633,000	$ 21,466,000
Cash collateral	17,590,000	14,530,000
Credit-risk contract
Derivatives
Derivative Liability	2,700,000	2,000
Cash collateral	$ 2,500,000	$ 0

Derivatives and hedging activ_9

Derivatives and hedging activities - Cumulative Basis Adjustment for Fair Value Hedges (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value
Amortized Amount of the Hedged Assets/(Liabilities)	$ 19,833	$ 22,196
Hedged Asset, Statement of Financial Position [Extensible Enumeration]	Available-for-sale Securities, Debt Securities
Fair value hedges \| Derivatives designated as hedging instruments
Derivatives, Fair Value
Amortized Amount of the Hedged Assets/(Liabilities)	$ 194,035
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	1,333
Fair value hedges \| Derivatives designated as hedging instruments \| Interest rate swaps
Derivatives, Fair Value
Amortized Amount of the Hedged Assets/(Liabilities)	$ 143,573
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Available-for-sale Securities, Debt Securities	Available-for-sale Securities, Debt Securities
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	$ 871
Amortized Cost Basis Amount of the Hedged Assets	143,600
Amounts of designated hedged items	100,000
Fair value hedges \| Derivatives designated as hedging instruments \| Fixed Rate Loans
Derivatives, Fair Value
Amortized Amount of the Hedged Assets/(Liabilities)	50,462
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	462
Hedged Asset, carrying value	$ 50,000

Stock plans - Additional Inform

Stock plans - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
2017 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares	23,428	19,787	19,818
Vested shares	16,791	16,403	15,460
Number of nonvested restricted stock awards	58,631	39,470	36,281	31,923
Forfeited shares		195
Salaries and employee benefits expense	$ 0.9	$ 0.5	$ 0.5
2017 Plan \| Non-Performance-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award
Shares or units awarded		4,397
Number of nonvested restricted stock awards	4,139	3,846
Shares or units vesting period	3 years	3 years	3 years
2017 Plan \| Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares		15,390
Number of nonvested restricted stock awards	12,652	12,557
Shares or units vesting period	3 years	3 years	3 years
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units	3 years	3 years	3 years
Average return on equity period used for conditions for vesting of performance-based restricted stock units	3 years	3 years	3 years
2017 Plan \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation expense	$ 1.2
Weighted average vesting period	1 year 8 months 12 days
2023 Plan
Share-based Compensation Arrangement by Share-based Payment Award
Common stock available for grant as awards	98,403
Salaries and employee benefits expense	$ 0.9	$ 0.5	$ 0.5
2023 Plan \| Non-Performance-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares	5,206
2023 Plan \| Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Granted shares	18,222

Stock plans - Schedule of Activ

Stock plans - Schedule of Activity Related to Restricted Stock (Details) - 2017 Plan - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award
Nonvested, January 1	39,470	36,281	31,923
Granted shares	23,428	19,787	19,818
Vested shares	16,791	16,403	15,460
Forfeited shares		195
(Surrendered) Forfeited shares	(12,524)
Nonvested, December 31	58,631	39,470	36,281

Employee benefit plans - Salari

Employee benefit plans - Salaries and Employee Benefits Expense - ESOP (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Peoples Security Bank and Trust ESOP
Peoples Security Bank and Trust ESOP
Contribution to ESOP	$ 0	$ 0.2	$ 0.3

Employee benefit plans - Sala_2

Employee benefit plans - Salaries and Employee Benefits Expense - Profit Sharing (Details) - Retirement Profit Sharing Plan - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Profit Sharing plan
Company contribution	$ 1.4	$ 1.3	$ 1.2
Safe harbor contribution	0.8	0.7	0.7
Discretionary contributions	$ 0.6	$ 0.6	$ 0.6

Employee benefit plans - Sala_3

Employee benefit plans - Salaries and Employee Benefits Expense - SERP and Employee Pension Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jun. 22, 2008
Supplemental Executive Retirement Plans ("SERP")
Defined Benefit Plan Disclosure
Maximum annual benefit in excess of federal limits (as a percent)	6%
Employee benefit plan liability	$ 180
Employee benefit plan expense	19	$ 20	$ 19
Defined benefit plan accrued liabilities	3,100	2,800
Compensation expense	$ 400	400	$ 400
Pension Benefits
Defined Benefit Plan Disclosure
Retirement age period for fixed benefits payable	65 years
Benefits accrued under employees' pension plan				$ 0
Increase (decrease) in accumulated benefit obligation	$ 300	$ (3,900)
Discount rate, Obligation	4.73%	4.93%	2.59%

Employee benefit plans - Summar

Employee benefit plans - Summary of Pension and Postretirement Life Insurance Plans (Details) - Pension Benefits - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Change in benefit obligation:
Benefit obligation, beginning	$ 13,792	$ 18,066
Interest cost	655	456	$ 419
Change in experience gain	2	26
Change in actuarial assumptions	306	(3,899)
Benefits paid	(910)	(857)
Benefit obligation, ending	13,845	13,792	18,066
Change in plan assets:
Fair value of plan assets, beginning	16,106	19,257
Actual return on plan assets	2,413	(2,294)
Benefits paid	(910)	(857)
Fair value of plan assets, ending	17,609	16,106	$ 19,257
Funded status at end of year	$ 3,764	$ 2,314

Employee benefit plans - Schedu

Employee benefit plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Amounts recognized in the accumulated other comprehensive income (loss) consist of:
Net amount recognized	$ 3,414	$ 4,315
Pension Benefits
Defined Benefit Plan Disclosure
(Other Assets)/Other Liabilities	(3,764)	(2,314)
Amounts recognized in the accumulated other comprehensive income (loss) consist of:
Net actuarial gain	(4,370)	(5,499)
Deferred taxes	956	1,184
Net amount recognized	(3,414)	(4,315)
Accumulated benefit obligation	$ 13,845	$ 13,792	$ 18,066

Employee benefit plans - Compon

Employee benefit plans - Components of Net Periodic Pension Expense (Income) and Other Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net loss (gain)	$ 4,370	$ 5,499
Pension Benefits
Components of net periodic pension cost:
Interest cost	655	456	$ 419
Expected return on plan assets	(1,170)	(1,407)	(1,288)
Amortization of unrecognized net loss	194	198	301
Net periodic pension income:	(321)	(753)	(568)
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net loss (gain)	655	456	419
Deferred tax	(141)	(96)	(88)
Total recognized in other comprehensive income (loss)	514	360	331
Total recognized in net period pension cost and other comprehensive income (loss)	$ 193	$ (393)	$ (237)

Employee benefit plans - Sche_2

Employee benefit plans - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations and Related Expenses (Details) - Pension Benefits	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure
Discount rate, Obligation	4.73%	4.93%	2.59%
Discount rate, Expense	4.93%	2.59%	2.25%
Expected long-term return on plan assets	7.50%	7.50%	7.50%

Employee benefit plans - Sche_3

Employee benefit plans - Schedule of Pension Plan Weighted-Average Asset Allocations (Details) - Pension Benefits	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plan Disclosure
Weighted-average asset allocations	100%	100%
Cash and cash equivalents
Defined Benefit Plan Disclosure
Weighted-average asset allocations	4.40%	4.70%
Equity securities
Defined Benefit Plan Disclosure
Weighted-average asset allocations	63.30%	60.30%
Corporate bonds
Defined Benefit Plan Disclosure
Weighted-average asset allocations	18.10%	19.50%
U.S. government securities
Defined Benefit Plan Disclosure
Weighted-average asset allocations	14.20%	15.50%

Employee benefit plans - Fair V

Employee benefit plans - Fair Value Measurement of Pension Plan Assets (Details) - Pension Benefits - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure
Fair value of pension plan assets	$ 17,609	$ 16,106	$ 19,257
Cash and cash equivalents
Defined Benefit Plan Disclosure
Fair value of pension plan assets	783	759
U.S. large cap
Defined Benefit Plan Disclosure
Fair value of pension plan assets	9,482	7,365
International
Defined Benefit Plan Disclosure
Fair value of pension plan assets	1,671	2,338
U.S. Treasury securities
Defined Benefit Plan Disclosure
Fair value of pension plan assets	343	511
U.S. Government Agencies
Defined Benefit Plan Disclosure
Fair value of pension plan assets	2,149	1,991
Corporate bonds
Defined Benefit Plan Disclosure
Fair value of pension plan assets	3,181	3,142
Level 1
Defined Benefit Plan Disclosure
Fair value of pension plan assets	11,936	10,462
Level 1 \| Cash and cash equivalents
Defined Benefit Plan Disclosure
Fair value of pension plan assets	783	759
Level 1 \| U.S. large cap
Defined Benefit Plan Disclosure
Fair value of pension plan assets	9,482	7,365
Level 1 \| International
Defined Benefit Plan Disclosure
Fair value of pension plan assets	1,671	2,338
Level 2
Defined Benefit Plan Disclosure
Fair value of pension plan assets	5,673	5,644
Level 2 \| U.S. Treasury securities
Defined Benefit Plan Disclosure
Fair value of pension plan assets	343	511
Level 2 \| U.S. Government Agencies
Defined Benefit Plan Disclosure
Fair value of pension plan assets	2,149	1,991
Level 2 \| Corporate bonds
Defined Benefit Plan Disclosure
Fair value of pension plan assets	$ 3,181	$ 3,142

Employee benefit plans - Sala_4

Employee benefit plans - Salaries and Employee Benefits Expense - Investment Percentages (Details) - Pension Benefits - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plan Disclosure
Amount of company's common stock included in equity securities	$ 0	$ 0
Equity Securities
Defined Benefit Plan Disclosure
Maximum diversification (as a percent)	10%
Maximum \| Industry Sector
Defined Benefit Plan Disclosure
Maximum diversification (as a percent)	20%
Cash Equivalents
Defined Benefit Plan Disclosure
Defined benefit plan, target allocation (as a percent)	10%
Fixed Income
Defined Benefit Plan Disclosure
Defined benefit plan, target allocation (as a percent)	40%
Equity
Defined Benefit Plan Disclosure
Defined benefit plan, target allocation (as a percent)	50%

Employee benefit plans - Sche_4

Employee benefit plans - Schedule of Benefit Payments Expected to be Paid (Details) - Pension Benefits $ in Thousands	Dec. 31, 2023 USD ($)
Defined Benefit Plan Disclosure
2024	$ 966
2025	999
2026	1,022
2027	1,030
2028	1,024
Thereafter	$ 4,946

Income taxes - Current and Defe

Income taxes - Current and Deferred Amounts of Provision for Income Taxes Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income taxes
Current	$ 3,853	$ 6,665	$ 9,548
Deferred	1,268	611	450
Total income tax expense	$ 5,121	$ 7,276	$ 9,998

Income taxes - Components of Ne

Income taxes - Components of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Allowance for loan losses	$ 4,789	$ 5,916
Lease liability	2,397	1,787
Defined benefit plan	1,635	1,798
Deferred compensation	694	860
Deferred loan fees and costs		59
Investment securities available for sale	11,270	14,266
Other	339	196
Total	21,124	24,882
Deferred tax liabilities:
Lease right-of-use assets	2,313	1,718
Premises and equipment, net	2,109	1,692
Merger related accounting	474	472
Deferred loan costs	92
Accrued compensation	1,912	1,872
Other	454	389
Total	7,354	6,143
Net deferred tax asset	$ 13,770	$ 18,739

Income taxes - Reconciliation o

Income taxes - Reconciliation of Effective Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income taxes
Provision for income tax at statutory rate	$ 6,825	$ 9,527	$ 11,239
State tax, net of federal benefit	(397)	(216)	(475)
Tax exempt interest	(1,057)	(1,400)	(1,194)
Bank owned life insurance income	(221)	(205)	(119)
Residential housing program tax credits	(755)	(911)	(1,091)
Nondeductible transaction costs	179
Other, net	(247)	49	688
Total income tax expense	$ 5,121	$ 7,276	$ 9,998
Provision for income tax at statutory rate	21%	21%	21%
State tax, net of federal benefit	1.22%	0.63%	0.89%
Tax exempt interest	(3.25%)	(3.09%)	(2.23%)
Bank owned life insurance income	(0.68%)	(0.45%)	(0.22%)
Residential housing program tax credits	(2.32%)	(2.01%)	(2.04%)
Nondeductible transaction costs	0.55%
Other, net	(0.76%)	(0.04%)	1.29%
Total	15.76%	16.04%	18.69%

Parent Company financial stat_3

Parent Company financial statements - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets:
Cash and cash equivalents	$ 187,365	$ 37,868
Equity securities	98	110
Other assets	42,249	46,071
Total assets	3,742,289	3,553,515
Liabilities and Stockholders' Equity:
Subordinated debt	33,000	33,000
Accrued interest payable	5,765	903
Other liabilities	41,475	42,179
Stockholders' equity	340,422	315,350	$ 340,126	$ 316,877
Total liabilities and stockholders' equity	3,742,289	3,553,515
Peoples Bank
Assets:
Cash and cash equivalents	188	359	$ 4,044	$ 1,069
Equity securities	98	110
Investment in bank subsidiary	372,348	346,734
Other assets	936	1,295
Total assets	373,570	348,498
Liabilities and Stockholders' Equity:
Subordinated debt	33,000	33,000
Accrued interest payable	148	148
Stockholders' equity	340,422	315,350
Total liabilities and stockholders' equity	$ 373,570	$ 348,498

Parent Company financial stat_4

Parent Company financial statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest income:
Dividends from subsidiaries	$ 4	$ 2	$ 74
Net gain realized on sale of equity securities	(11)	(31)	2
Unrealized holding gains (losses) on equity securities	11	31	(2)
Expense:
Acquisition related expenses	1,816
Interest expense on subordinated debt	1,774	1,774	1,774
Income tax benefit	5,121	7,276	9,998
Net income	27,380	38,090	43,519
Peoples Bank
Interest income:
Dividends from subsidiaries	20,158	11,325	17,593
Other income	4	3	4
Unrealized holding gains (losses) on equity securities	(11)	(31)	2
Total income	20,151	11,297	17,599
Expense:
Acquisition related expenses	1,580
Interest expense on subordinated debt	1,774	1,774	1,774
Other expenses	1,538	1,188	222
Total expenses	4,892	2,962	1,996
Interest expense on subordinated debt	15,259	8,335	15,603
Income tax benefit	(857)	(624)	(410)
Income before undistributed income of subsidiaries	16,116	8,959	16,013
Equity in undistributed net income of subsidiaries	11,264	29,131	27,506
Net income	$ 27,380	$ 38,090	$ 43,519

Parent Company financial stat_5

Parent Company financial statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net Income (Loss)	$ 27,380	$ 38,090	$ 43,519
Adjustments:
Net losses (gains) on investment securities	(81)	1,976
Decrease in other assets	(2,085)	(1,701)	1,128
Increase (decrease) in other liabilities	(2,833)	(48)	1,875
Stock based compensation	888	534	546
Net cash provided by operating activities	33,252	42,357	40,771
Cash flows from investing activities:
Net cash used in investing activities	(25,754)	(467,819)	(440,103)
Cash flows used in financing activities:
Proceeds from long-term debt	25,000
Retirement of common stock	(5,886)	(1,253)	(2,361)
Net cash provided by financing activities	141,999	183,397	451,073
Increase (decrease) in cash and cash equivalents	149,497	(242,065)	51,741
Cash and cash equivalents at beginning of period	37,868
Cash and cash equivalents at end of period	187,365	37,868
Peoples Bank
Cash flows from operating activities:
Net Income (Loss)	27,380	38,090	43,519
Adjustments:
Net losses (gains) on investment securities	11	31	(2)
Undistributed net income of subsidiaries	(11,264)	(29,131)	(27,506)
Decrease in other assets	359	(591)	(429)
Increase (decrease) in other liabilities		(40)
Stock based compensation	888	534	546
Net cash provided by operating activities	17,374	8,893	16,128
Cash flows used in financing activities:
Retirement of common stock	(5,886)	(1,253)	(2,361)
Cash dividends paid	(11,659)	(11,325)	(10,792)
Net cash provided by financing activities	(17,545)	(12,578)	(13,153)
Increase (decrease) in cash and cash equivalents	(171)	(3,685)	2,975
Cash and cash equivalents at beginning of period	359	4,044	1,069
Cash and cash equivalents at end of period	$ 188	$ 359	$ 4,044

Regulatory matters (Details)

Regulatory matters (Details) - USD ($)		12 Months Ended
Regulatory matters (Details) - USD ($)	Jan. 01, 2016	Dec. 31, 2023	Dec. 31, 2022
Schedule of Capitalization
Capital stock (as a percent)		100%
Period over which the Company may only declare and pay dividends out of accumulated net earnings, including accumulated net earnings acquired as a result of a merger		7 years
Funds available for transfers		$ 37,500,000
Loans outstanding		$ 0	$ 0
Capital conservation buffer	2.50%
Capital conservation buffer		0.0250
One risk based capital actual		0.0250
Buffer total risk based capital		0.0250
Maximum
Schedule of Capitalization
Net earnings which must set aside as a surplus (as a percent)		10%
Minimum
Schedule of Capitalization
Net earnings to surplus funds (as a percent)		10%
Risk-weighted assets plus capital conversion		0.0700
One capital ratio		0.0450
weighted assets ratio		0.0850
Tier 1 capital to risk-weighted assets, Actual Ratio		0.0600
Total capital to risk-weighted assets, Actual Ratio		0.0800
Total risk-based capital to risk-weighted assets		0.1050
Tier 1 capital to average assets, Actual Ratio		0.0400

Regulatory matters - Schedule o

Regulatory matters - Schedule of Bank's Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Consolidated
Common equity Tier 1 capital to risk-weighted assets
Common equity Tier 1 capital to risk-weighted assets, Actual Amount	$ 321,403	$ 308,211
Common equity Tier 1 capital to risk-weighted assets, Actual Ratio	0.1210	0.1113
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 119,577	$ 124,569
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0450	0.0450
Tier 1 capital to risk-weighted assets
Tier 1 capital to risk-weighted assets, Actual Amount	$ 321,403	$ 308,211
Tier 1 capital to risk-weighted assets, Actual Ratio	0.1210	0.1113
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 159,436	$ 166,093
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0600	0.0600
Total capital to risk-weighted assets
Total capital to risk-weighted assets, Actual Amount	$ 376,341	$ 335,683
Total capital to risk-weighted assets, Actual Ratio	0.1416	0.1213
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 212,581	$ 221,457
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0800	0.0800
Tier 1 capital to average assets
Tier 1 capital to average assets, Actual Amount	$ 321,403	$ 308,211
Tier 1 capital to average assets, Actual Ratio	0.0850	0.0903
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount	$ 151,252	$ 136,559
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio	0.0400	0.0400
Peoples Bank
Common equity Tier 1 capital to risk-weighted assets
Common equity Tier 1 capital to risk-weighted assets, Actual Amount	$ 353,330	$ 339,596
Common equity Tier 1 capital to risk-weighted assets, Actual Ratio	0.1330	0.1227
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 119,561	$ 124,563
Common equity Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0450	0.0450
Common equity Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount	$ 172,699	$ 179,924
Common equity Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0650	6.50
Tier 1 capital to risk-weighted assets
Tier 1 capital to risk-weighted assets, Actual Amount	$ 353,330	$ 339,596
Tier 1 capital to risk-weighted assets, Actual Ratio	0.1330	0.1227
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 159,414	$ 166,083
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0600	0.0600
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount	$ 212,552	$ 221,444
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0800	8
Total capital to risk-weighted assets
Total capital to risk-weighted assets, Actual Amount	$ 375,268	$ 367,068
Total capital to risk-weighted assets, Actual Ratio	0.1412	0.1326
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount	$ 212,552	$ 221,444
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio	0.0800	0.0800
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount	$ 265,690	$ 276,806
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.1000	10
Tier 1 capital to average assets
Tier 1 capital to average assets, Actual Amount	$ 353,330	$ 339,596
Tier 1 capital to average assets, Actual Ratio	0.0934	0.0969
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount	$ 151,274	$ 140,167
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio	0.0400	0.0400
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount	$ 189,093	$ 175,209
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio	0.0500	5

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accumulated Other Comprehensive Loss
Net unrealized loss on investment securities available for sale	$ (51,527)	$ (66,250)
Income tax benefit	(11,270)	(14,266)
Net of income taxes	(40,257)	(51,984)
Benefit plan adjustments	(4,370)	(5,499)
Income tax benefit	(956)	(1,184)
Net of income taxes	(3,414)	(4,315)
Derivative adjustments	(871)	(47)
Income tax benefit	(191)	(10)
Net of income taxes	(680)	(37)
Accumulated other comprehensive loss	$ (44,351)	$ (56,336)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss - Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Loss
Unrealized gain (loss) on investment securities available for sale	$ 14,804	$ (66,435)	$ (11,487)
Net (gain) loss on the sale of investment securities available for sale (1)	(81)	1,976
Other comprehensive income (loss) on available for sale debt securities	14,723	(64,459)	(11,487)
Amortization of actuarial loss (2)	194	198	301
Actuarial gain (loss)	935	172	1,808
Net change in benefit plan liabilities	1,129	370	2,109
Net change in derivatives	(824)	(728)	(322)
Other comprehensive income (loss)	15,028	(64,817)	(9,700)
Income tax expense (benefit)	3,043	(13,995)	(2,037)
Other comprehensive income (loss)	$ 11,985	$ (50,822)	$ (7,663)

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ 27,380	$ 38,090	$ 43,519

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 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