Beneficial Bancorp 10-Q 26 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 26, 2018
Document and Entity Information
Entity Registrant Name	Beneficial Bancorp Inc.
Entity Central Index Key	1,615,418
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		74,958,046
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
CASH AND CASH EQUIVALENTS:
Cash and due from banks	$ 52,440	$ 45,048
Overnight investments	534,353	512,567
Total cash and cash equivalents	586,793	557,615
INVESTMENT SECURITIES:
Available-for-sale, at fair value (amortized cost of $297,542 and $309,333 at June 30, 2018 and December 31, 2017, respectively)	294,428	310,308
Held-to-maturity (estimated fair value of $485,276 and $533,425 at June 30, 2018 and December 31, 2017, respectively)	498,454	537,302
Federal Home Loan Bank stock, at cost	23,182	23,210
Total investment securities	816,064	870,820
LOANS AND LEASES:	4,023,310	4,034,130
Allowance for loan and lease losses	(43,068)	(43,267)
Net loans and leases	3,980,242	3,990,863
ACCRUED INTEREST RECEIVABLE	18,152	17,512
BANK PREMISES AND EQUIPMENT, Net	68,259	70,573
OTHER ASSETS:
Goodwill	169,002	169,002
Bank owned life insurance	81,207	80,172
Other intangibles	2,486	2,884
Other assets	48,106	39,387
Total other assets	300,801	291,445
TOTAL ASSETS	5,770,311	5,798,828
Deposits:
Non-interest bearing deposits	592,375	563,185
Interest-bearing deposits	3,568,131	3,587,308
Total deposits	4,160,506	4,150,493
Borrowed funds	515,000	540,439
Other liabilities	72,213	73,006
Total liabilities	4,747,719	4,763,938
COMMITMENTS AND CONTINGENCIES (Note 17)
STOCKHOLDERS' EQUITY:
Preferred Stock - $.01 par value; 100,000,000 shares authorized, None issued or outstanding as of June 30, 2018 and December 31, 2017
Common Stock - $.01 par value 500,000,000 shares authorized, 84,724,050 and 84,503,580 issued and 74,917,025 and 75,829,537 outstanding, as of June 30, 2018 and December 31, 2017, respectively	847	845
Additional paid-in capital	807,616	799,658
Unearned common stock held by employee savings and stock ownership plan	(25,844)	(27,078)
Retained earnings (partially restricted)	405,395	405,497
Accumulated other comprehensive loss	(29,406)	(26,127)
Treasury Stock at cost, 9,807,025 shares and 8,674,043 shares at June 30, 2018 and December 31, 2017, respectively	(136,622)	(118,497)
Total Beneficial Bancorp Inc. stockholders' equity	1,021,986	1,034,298
Noncontrolling Interest	606	592
Total Equity	1,022,592	1,034,890
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 5,770,311	$ 5,798,828

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Condensed Consolidated Statements of Financial Condition
Available-for-sale, amortized cost (in dollars)	$ 297,542	$ 309,333
Held-to-maturity, estimated fair value (in dollars)	$ 485,276	$ 533,425
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares authorized	100,000,000	100,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	500,000,000	500,000,000
Common Stock, shares issued	84,724,050	84,503,580
Common Stock, shares outstanding	74,917,025	75,829,537
Treasury Stock, shares	9,807,025	8,674,043

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Income - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
INTEREST INCOME:
Interest and fees on loans and leases		$ 45,415	$ 42,211	$ 88,468	$ 83,698
Interest on overnight investments		2,314	897	4,369	1,426
Interest and dividends on investment securities:
Taxable		4,868	5,416	9,987	10,773
Tax-exempt		18	18	36	40
Total interest income		52,615	48,542	102,860	95,937
Interest on deposits:
Interest bearing checking accounts		648	617	1,287	1,219
Money market and savings deposits		1,930	1,491	3,415	2,952
Time deposits		2,704	2,310	5,280	4,497
Total		5,282	4,418	9,982	8,668
Interest on borrowed funds		2,208	2,367	4,553	4,737
Total interest expense		7,490	6,785	14,535	13,405
Net interest income		45,125	41,757	88,325	82,532
Provision for loan and lease losses		1,666	750	2,665	1,350
Net interest income after provision for loan and lease losses		43,459	41,007	85,660	81,182
NON-INTEREST INCOME:
Insurance and advisory commission and fee income		1,402	1,626	3,325	3,719
Service charges and other income		5,232	5,353	9,428	9,451
Mortgage banking and SBA income		703	444	1,171	1,323
Net gain (loss) on investment securities		46	(3)	123	(6)
Total non-interest income		7,383	7,420	14,047	14,487
NON-INTEREST EXPENSE:
Salaries and employee benefits		19,748	18,557	39,705	37,385
Occupancy expense		2,489	2,538	5,520	5,273
Depreciation, amortization and maintenance		2,295	2,397	4,577	4,813
Marketing expense		1,474	1,039	3,394	2,141
Intangible amortization expense		199	570	398	1,138
FDIC Insurance		413	438	842	870
Professional fees		1,200	1,001	2,237	2,212
Classified loan and other real estate owned related expense		364	262	588	530
Other		7,105	7,412	14,382	15,219
Total non-interest expense		35,287	34,214	71,643	69,581
Income before income taxes		15,555	14,213	28,064	26,088
Income tax expense		3,711	4,728	6,496	8,248
CONSOLIDATED NET INCOME		11,844	9,485	21,568	17,840
Less: Net loss attributable to noncontrolling interest		(94)		(161)
NET INCOME ATTRIBUTABLE TO BENEFICIAL BANCORP, INC.		$ 11,938	$ 9,485	$ 21,729	$ 17,840
EARNINGS PER SHARE - Basic (in dollars per share)	[1]	$ 0.16	$ 0.13	$ 0.30	$ 0.24
EARNINGS PER SHARE - Diluted (in dollars per share)	[1]	0.16	0.13	0.30	0.24
DIVIDENDS DECLARED PER SHARE		$ 0.06	$ 0.06	$ 0.37	$ 0.12
Average common shares outstanding - Basic (in shares)		70,621,336	70,630,256	70,761,586	70,337,425
Average common shares outstanding - Diluted (in shares)		71,233,890	71,168,059	71,385,042	70,993,059
[1]	*Net earnings per share for both common shares and participating securities.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Income (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Income
Net earnings per share for participating securities, basic	$ 0.16	$ 0.13	$ 0.30	$ 0.24
Net earnings per share for participating securities, diluted	$ 0.16	$ 0.13	$ 0.30	$ 0.24

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Comprehensive Income
Consolidated net income	$ 21,568	$ 17,840
Less: Net loss attributable to noncontrolling interest	(161)
Net Income attributable to Beneficial Bancorp, Inc.	21,729	17,840
Securities available for sale and transferred securities:
Unrealized holding (losses) gains on available for sale securities arising during the period (net of tax of $944 and $250 for the six months ended June 30, 2018 and 2017, respectively)	(3,271)	436
Accretion of unrealized losses on available-for-sale securities transferred to held-to-maturity (net of tax of $88 and $145 for the six months ended June 30, 2018 and 2017, respectively)	302	255
Reclassification adjustment for net losses on available for sale securities included in net income (net of tax of $0 and $2 for the six months ended June 30, 2018 and 2017, respectively)	1	4
Cash flow hedge:
Unrealized gain on cash flow hedge arising during the period (net of tax of $1,194 for the six months ended June 30, 2018)	4,098
Defined benefit pension plans:
Pension gains, other postretirement and postemployment benefit plan adjustments (net of tax of $270 and $465 for the six months ended June 30, 2018 and 2017, respectively)	786	655
Total other comprehensive income	1,916	1,350
Comprehensive income	$ 23,645	$ 19,190

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Comprehensive Income
Unrealized holding (losses) gains on available for sale securities arising during the period, tax	$ 944	$ 250
Accretion of unrealized losses on available-for-sale securities transferred to held-to-maturity, tax	88	145
Reclassification adjustment for net losses on available for sale securities included in net income, tax	0	2
Unrealized gain on cash flow hedge arising during the period, tax	1,194
Pension gains, other postretirement and postemployment benefit plan adjustments, tax	$ 270	$ 465

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Changes in Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Total Beneficial Bancorp Inc. Stockholders' Equity	Common Stock	Additional Paid in Capital	Common Stock held by KSOP	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss	Noncontrolling Interest	Total
BALANCE, beginning at Dec. 31, 2017	$ 1,034,298	$ 845	$ 799,658	$ (27,078)	$ 405,497	$ (118,497)	$ (26,127)	$ 592	$ 1,034,890
BALANCE, beginning (in shares) at Dec. 31, 2017		84,503,580
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)	21,729				21,729			(161)	21,729
Net Income (Loss)									21,568
Contribution from noncontrolling shareholders								175	175
Dividends declared ($0.00 per share)	(27,026)				(27,026)				(27,026)
KSOP shares committed to be released	2,125		891	1,234					2,125
Stock option expense	298		298						298
Restricted stock expense	6,600		6,600						6,600
Effect of adoption of ASU 2016-01 accounting for equity securities (net of tax of $36 as of January 1, 2018) | ASU 2016-01					123		(123)
Stock options exercised	2,306	$ 2	2,304						2,306
Stock options exercised (in shares)		220,470
Purchase of treasury stock including shares withheld to cover tax liabilities	(20,260)					(20,260)			(20,260)
Omnibus Equity Plan shares granted from treasury stock, net			(2,135)			2,135
Reclassification due to the adoption of ASU No. 2018-02 | ASU 2018-02					5,072		(5,072)
Net unrealized losses on AFS securities arising during the period (net of tax of $944)	(3,271)						(3,271)		(3,271)
Accretion of unrealized losses on AFS securities transferred to HTM during the period (net of tax of $88)	302						302		302
Reclassification adjustment for net losses on AFS securities included in net income	1						1		1
Unrealized gain on cash flow hedge arising during the period (net of tax of $1,194)	4,098						4,098		4,098
Pension, other postretirement and postemployment benefit plan adjustments (net of tax of $270)	786						786		786
BALANCE, ending at Jun. 30, 2018	$ 1,021,986	$ 847	$ 807,616	$ (25,844)	$ 405,395	$ (136,622)	$ (29,406)	$ 606	$ 1,022,592
BALANCE, ending (in shares) at Jun. 30, 2018		84,724,050

Condensed Consolidated Stateme9

Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands	Jan. 01, 2018USD ($)
Condensed Consolidated Statements of Changes in Stockholders' Equity
Effect of change in accounting principle adoption of ASU 2016-01 accounting for equity securities, deferred tax	$ 36

Condensed Consolidated Statem10

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
OPERATING ACTIVITIES:
Net income attributable to Beneficial Bancorp, Inc.	$ 11,938	$ 9,485	$ 21,729	$ 17,840
Adjustment to reconcile net income to net cash provided by (used in) operating activities:
Provision for loan and lease losses	1,666	750	2,665	1,350	$ 3,118
Depreciation and amortization			2,848	3,104
Intangible amortization	199	570	398	1,138
Net (gain) loss on investment securities			(123)	6
Accretion of discount on investments			(70)	(106)
Amortization of premium on investments			1,432	2,131
Accretion of acquired loan and lease marks			(1,783)	(1,313)
Gain on sale of loans			(963)	(1,186)
Net loss from disposition of premises and equipment				90
Net (gain) loss on sale of other real estate			(73)	5
Amortization of KSOP			2,125	2,140
Increase in bank owned life insurance			(1,035)	(288)
Stock based compensation			6,898	7,209
Origination of loans held for sale			(4,756)	(9,366)
Proceeds from sale of loans			17,753	23,227
Changes in assets and liabilities:
Accrued interest receivable			(640)	(262)
Accrued interest payable			(260)	100
Income taxes payable			981	259
Other liabilities			276	(2,174)
Other assets			(1,545)	87
Net cash provided by operating activities			45,857	43,991
INVESTING ACTIVITIES:
Loans and leases originated or acquired			(598,726)	(610,930)
Principal repayment on loans and leases			596,393	514,047
Proceeds from maturities, calls or repayments of investment securities available for sale			32,209	40,706
Purchases of investment securities held to maturity			(500)
Proceeds from maturities, calls or repayments of investment securities held to maturity			38,885	61,623
Net purchases of money market and mutual funds			(20,927)	(16,175)
Net redemptions (purchases) of Federal Home Loan Bank stock			28	(1,979)
Purchase of equity method investment			(3,000)
Proceeds from sale other real estate owned			196	826
Purchases of premises and equipment			(534)	(733)
Cash (used in) provided by other investing activities			(311)	196
Net cash provided by (used in) investing activities			43,713	(12,419)
FINANCING ACTIVITIES:
Increase in borrowed funds			25,000	130,000
Repayment of borrowed funds			(50,439)	(79,991)
Net increase in checking, savings and demand accounts			60,197	43,763
Net decrease in time deposits			(50,184)	(16,915)
Cash dividend paid to stockholders			(27,026)	(8,798)
Change in noncontrolling interest			14
Proceeds from the exercise of stock options			2,470	11,159
Cash paid to tax authorities related to stock based compensation awards			(5,866)	(7,046)
Purchase of treasury stock			(14,558)	(7,406)
Net cash (used in) provided by financing activities			(60,392)	64,766
NET INCREASE IN CASH AND CASH EQUIVALENTS			29,178	96,338
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			557,615	287,046	287,046
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 586,793	$ 383,384	586,793	383,384	$ 557,615
SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND NON-CASH INFORMATION:
Cash payments for interest			14,795	13,305
Cash payments for income taxes			5,514	7,987
Transfers of loans to other real estate owned			$ 19	$ 166

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto contained in the Annual Report on Form 10-K filed by Beneficial Bancorp, Inc. (the “Company” or “Beneficial”) with the U.S. Securities and Exchange Commission on February 28, 2018. The results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 or any other period. Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Specifically, the financial statements include the accounts of Beneficial Bank (the “Bank”), the Company’s wholly owned subsidiary, and the Bank’s wholly and majority owned subsidiaries. The Bank’s wholly and majority owned subsidiaries include: (i) Neumann Finance Company, a majority owned subsidiary, formed to originate small business leases, (ii) Neumann Corporation, a Delaware corporation formed to manage certain investments, (iii) Beneficial Insurance Services, LLC, which provides insurance services to individual and business customers and (iv) Beneficial Equipment Finance Corporation (formerly BSB Union Corporation), an equipment leasing company. Additionally, the Bank has subsidiaries that hold other real estate acquired in foreclosure or transferred from the Bank’s real estate loan portfolio. All significant intercompany accounts and transactions have been eliminated. The various services and products support each other and are interrelated. Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. Accordingly, the various financial services and products offered are included in one reportable operating segment: community banking as outlined under guidance in the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC” or “codification”) Topic 280 for Segment Reporting. Use of Estimates in the Preparation of Financial Statements These unaudited interim condensed consolidated financial statements are prepared in conformity with GAAP. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates include the allowance for loan losses, goodwill, other intangible assets, income taxes, postretirement benefits, and the fair value of investment securities. Actual results could differ from those estimates and assumptions.

NATURE OF OPERATIONS

NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2018
NATURE OF OPERATIONS
NATURE OF OPERATIONS	NOTE 2 — NATURE OF OPERATIONS The Company is a Maryland corporation that was incorporated in August 2014 to be the successor to Beneficial Mutual Bancorp, Inc. (“Beneficial Mutual Bancorp”), the Bank’s former mid-tier stock holding company, upon completion of the second-step conversion of the Bank from the mutual holding company structure to the stock holding company structure. Beneficial Savings Bank MHC was the former mutual holding company for Beneficial Mutual Bancorp prior to completion of the second-step conversion. Upon the completion of the second-step conversion, each of Beneficial Savings Bank MHC and Beneficial Mutual Bancorp ceased to exist. The second-step conversion was completed on January 12, 2015, at which time the Company sold, for gross proceeds of $503.8 million, a total of 50,383,817 shares of common stock at $10.00 per share, including 2,015,352 shares purchased by the Bank’s employee savings and stock ownership plan. As part of the second-step conversion, each of the existing 29,394,417 outstanding shares of Beneficial Mutual Bancorp common stock owned by persons other than Beneficial Savings Bank MHC was converted into 1.0999 of a share of Company common stock. The consolidated financial statements include the accounts of the Company, the Bank, a Pennsylvania chartered savings bank, and the Bank’s subsidiaries. The Company owns 100% of the issued and outstanding common stock of the Bank. The Bank offers a variety of consumer and commercial banking services to individuals, businesses, and nonprofit organizations through 61 offices throughout the Philadelphia and Southern New Jersey area. The Bank is supervised and regulated by the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation (the “FDIC”). The Company is regulated by the Board of Governors of the Federal Reserve System. The deposits of the Bank are insured up to the applicable legal limits by the Deposit Insurance Fund of the FDIC.

NON-INTEREST INCOME

NON-INTEREST INCOME	6 Months Ended
	Jun. 30, 2018
NON-INTEREST INCOME
NON-INTEREST INCOME	NOTE 3 — NON-INTEREST INCOME During the six months ended June 30, 2018, the Company adopted ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. The Company has included the following table regarding the Company’s non-interest income for the periods presented. For the Three Months Ended For the Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Insurance commission income $ $ $ $ Debit card interchange fee income Returned check charges Bank owned life insurance Limited partnership losses and amortization ) ) ) ) Other service charges Mortgage banking & SBA income Net gain (loss) on investment securities ) ) Total non-interest income $ $ $ $ The Company recognizes revenue as it is earned and noted no impact to its revenue recognition policies as a result of the adoption of ASU 2014-09. The following is a discussion of key revenues within the scope of the new revenue guidance: · Insurance commission income — Insurance revenue is earned through commissions on insurance sales and earned at a point in time. · Debit card interchange fee income — Card processing fees consist of interchange fees from consumer debit card networks and other card related services. Interchange rates are set by the card network. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur. · Service charges on deposit accounts — Revenue from service charges on deposit accounts is earned through cash management, wire transfer, and other deposit-related services; as well as overdraft, non-sufficient funds, account management and other deposit-related fees. Revenue is recognized for these services either over time, corresponding with deposit accounts’ monthly cycle, or at a point in time for transactional related services and fees. These revenues are included in returned check charges and other service charges in the table above.

CHANGES IN AND RECLASSIFICATION

CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2018
CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	NOTE 4 — CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the changes in the balances of each component of accumulated other comprehensive income (“AOCI”) for the six months ended June 30, 2018 and June 30, 2017. All amounts are presented net of tax. (Dollars in thousands) Net unrealized Net Defined Cash Flow Total Beginning balance, January 1, 2018 $ ) $ — $ ) $ $ ) Changes in other comprehensive loss before reclassifications: Unrealized holding losses on AFS securities ) — — — ) Accretion of unrealized losses on AFS securities transferred to HTM — — Unrealized gain on cash flow hedge — — — Amount reclassified from accumulated other comprehensive loss — — Total changes in current-period other comprehensive loss before reclassifications ) — Changes in other comprehensive loss as a result of reclassifications: Effect of adoption of ASU 2016-01 equity securities — ) — — ) Reclassification due to the adoption of ASU No. 2018-02 ) — ) ) Total changes in other comprehensive loss as a result of reclassifications ) ) ) ) Net other comprehensive (loss) income ) ) ) ) Ending balance, June 30, 2018 $ ) $ ) $ ) $ $ ) Net unrealized holding gains on available-for-sale Defined benefit (Dollars in thousands) securities pension plan items Total Beginning balance, January 1, 2017 $ ) $ ) $ ) Changes in other comprehensive loss before reclassifications: Unrealized holding gains on AFS securities — Accretion of unrealized losses on AFS securities transferred to HTM — Amount reclassified from accumulated other comprehensive loss Net current-period other comprehensive income Ending balance, June 30, 2017 $ ) $ ) $ ) The following tables present reclassifications out of AOCI by component for the six months ended June 30, 2018 and June 30, 2017: For the Six Months Ended June 30, 2018 (Dollars in thousands) Details about accumulated Amount reclassified Affected line item in other comprehensive loss from accumulated other the consolidated statements Components comprehensive loss of operations Unrealized gains and losses on available-for-sale securities $ Net loss on sale of investment securities — Income tax benefit $ Net of tax Amortization of defined benefit pension items Prior service costs $ )(1) Other non-interest expense Net recognized actuarial losses (1) Other non-interest expense $ Total before tax ) Income tax benefit $ Net of tax (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. See Note 15 - Pension and Other Postretirement Benefits for additional details. For the Six Months Ended June 30, 2017 (Dollars in thousands) Details about accumulated Amount reclassified Affected line item in other comprehensive loss from accumulated other the consolidated statements Components comprehensive loss of operations Unrealized gains and losses on available-for-sale securities $ Net loss on sale of investment securities ) Income tax benefit $ Net of tax Amortization of defined benefit pension items Prior service costs $ )(1) Other non-interest expense Net recognized actuarial losses (1) Other non-interest expense $ Total before tax ) Income tax benefit $ Net of tax (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. See Note 15 - Pension and Other Postretirement Benefits for additional details.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 5 — EARNINGS PER SHARE The following table presents a calculation of basic and diluted earnings per share for the three and six months ended June 30, 2018 and 2017. Earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding. The difference between common shares issued and basic average common shares outstanding, for purposes of calculating basic earnings per share, is a result of subtracting unallocated employee savings and stock ownership plan (“KSOP”) shares and unvested restricted stock shares. Since the Company paid dividends during the six months ended June 30, 2018 and 2017, the Company was required to use the two-class method for both periods to calculate earnings per share as the unvested restricted stock issued under the Company’s equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share is computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period. Net earnings per share for both common shares and participating securities was the same for the three and six months ended June 30, 2018 and 2017. See Note 16 for further discussion of stock grants. Three Months Ended Six Months Ended (Dollars in thousands, except share and per share amounts) 2018 2017 2018 2017 Basic and diluted earnings per share: Net income $ $ $ $ Net income allocated to unvested restricted stock ) ) ) ) Net income allocated to common shares $ $ $ $ Basic average common shares outstanding Effect of dilutive securities Dilutive average shares outstanding Net earnings per share Basic $ $ $ $ Diluted $ $ $ $ Anti-dilutive shares are common stock equivalents with weighted average exercise prices in excess of the weighted average market value for the periods presented. There were no stock options that were anti-dilutive for both the three and six months ended June 30, 2018 and 2017.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2018
INVESTMENT SECURITIES
INVESTMENT SECURITIES	NOTE 6 — INVESTMENT SECURITIES The amortized cost and estimated fair value of investments in debt and equity securities at June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 Investment Securities Available-for-Sale Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Equity securities $ $ $ — $ U.S. Government Sponsored Enterprise (“GSE”) and Agency notes — Ginnie Mae guaranteed mortgage certificates — GSE mortgage-backed securities GSE collateralized mortgage obligations Municipal bonds — Corporate securities Money market and mutual funds — Total $ $ $ $ June 30, 2018 Investment Securities Held-to-Maturity Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value GSE mortgage-backed securities $ $ $ $ GSE & Agency collateralized mortgage obligations — Municipal bonds — Foreign bonds — Total $ $ $ $ December 31, 2017 Investment Securities Available-for-Sale Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Equity securities $ $ $ — $ U.S. Government Sponsored Enterprise (“GSE”) and Agency notes — Ginnie Mae guaranteed mortgage certificates — GSE mortgage-backed securities Collateralized mortgage obligations Municipal bonds — Corporate securities — Money market and mutual funds — Total $ $ $ $ December 31, 2017 Investment Securities Held-to-Maturity Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value GSE mortgage-backed securities $ $ $ $ Collateralized mortgage obligations — Municipal bonds — Foreign bonds — Total $ $ $ $ During the six months ended June 30, 2018, the Bank sold $126 thousand of mutual funds that resulted in a loss of $1 thousand. During the six months ended June 30, 2018, the Bank recognized $123 thousand of unrealized holding gains on equity securities with a readily determinable fair value following the adoption of ASU 2016-01. The following tables provide information on the gross unrealized losses and fair market value of the Company’s investments with unrealized losses that are not deemed to be other than temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2018 and December 31, 2017: At June 30, 2018 Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized (Dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government Sponsored Enterprise (“GSE”) and Agency notes $ $ $ — $ — $ $ Mortgage-backed securities Corporate securities — — Collateralized mortgage obligations Foreign Bond — — Subtotal, debt securities Mutual funds — — Total $ $ $ $ $ $ At December 31, 2017 Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized (Dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government Sponsored Enterprise (“GSE”) and Agency Notes $ $ $ — $ — $ $ Mortgage-backed securities Collateralized mortgage obligations Subtotal, debt securities $ $ $ $ $ $ Mutual funds — — Total $ $ $ $ $ $ Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis or as economic or market concerns warrant such evaluation. The Company determines whether the unrealized losses are temporary in accordance with guidance under FASB ASC Topic 320 for Investments - Debt and Equity Securities. The evaluation is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing performance of the securities. Management also evaluates other facts and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost, and near-term prospects of the issuer. The likelihood of recovering the Company’s investment, whether the Company has the intent to sell the investment or that it is more likely than not that the Company will be required to sell the investment before recovery is also used to determine the nature of the decline in market value of the securities. The Company records the credit portion of OTTI through earnings based on the credit impairment estimates generally derived from cash flow analyses. The remaining unrealized loss, due to factors other than credit, is recorded in other comprehensive income (“OCI”). The Company had an unrealized loss of $16.5 million related to its GSE mortgage-backed securities as of June 30, 2018. Additionally, the Company had an unrealized loss of $1.7 million on GSE & Agency collateralized mortgage obligations, an unrealized loss of $77 thousand on GSE Notes, an unrealized loss of $142 thousand on corporate securities, an unrealized loss of $4 thousand on foreign bonds and an unrealized loss of $2 thousand on mutual funds as of June 30, 2018. U.S. Government Sponsored Enterprise (“GSE”) and Agency Notes The Company’s investments that were in a loss position for less than 12 months included GSE Notes with an unrealized loss of 2.5% as of June 30, 2018. The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and 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 these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider these investments to be other-than temporarily impaired at June 30, 2018. Mortgage-Backed Securities The Company’s investments that were in a loss position for greater than 12 months included GSE mortgage-backed securities with an unrealized loss of 3.4% as of June 30, 2018. The Company’s investments that were in a loss position for less than 12 months included GSE mortgage-backed securities with an unrealized loss of 2.4% as of June 30, 2018. The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and 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 these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider these investments to be other-than temporarily impaired at June 30, 2018. Collateralized Mortgage Obligations (CMOs) The Company’s investments that were in a loss position for greater than 12 months included GSE CMOs with an unrealized loss of 2.6% as of June 30, 2018. The Company’s investments that were in a loss position for less than 12 months included GSE & Agency CMOs with an unrealized loss of 2.5% as of June 30, 2018. The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and 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 these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider these investments to be other-than temporarily impaired at June 30, 2018. Corporate Securities The Company’s investments that were in a loss position for less than 12 months included Corporate Securities with an unrealized loss of 0.9% as of June 30, 2018. The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized loss is due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell this investment before recovery of its amortized cost, which may be at maturity, the Company does not consider this investment to be other-than temporarily impaired at June 30, 2018. Foreign Bonds The Company’s investment that was in a loss position for less than 12 months included one Foreign Bond with an unrealized loss of 0.3% as of June 30, 2018. The unrealized loss is due to current interest rate levels relative to the Company’s cost. Because the unrealized loss is due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell this investment before recovery of its amortized cost, which may be at maturity, the Company does not consider this investment to be other-than temporarily impaired at June 30, 2018. The following table sets forth the stated maturities of the investment securities at June 30, 2018 and December 31, 2017. Maturities for mortgage-backed securities are dependent upon the rate environment and prepayments of the underlying loans. For purposes of this table they are presented separately. June 30, 2018 December 31, 2017 Amortized Estimated Amortized Estimated (Dollars are in thousands) Cost Fair Value Cost Fair Value Available-for-sale: Due in one year or less $ — $ — $ — $ — Due after one year through five years Due after five years through ten years Due after ten years — — — — Mortgage-backed securities Equity securities Money market and mutual funds Total $ $ $ $ Held-to-maturity: Due in one year or less $ $ $ $ Due after one year through five years Due after five years through ten years — — — — Due after ten years — — — — Mortgage-backed securities Total $ $ $ $ At June 30, 2018 and December 31, 2017, $52.5 million and $78.1 million, respectively, of securities were pledged to secure municipal deposits.

LOANS

LOANS	6 Months Ended
	Jun. 30, 2018
LOANS
LOANS	NOTE 7 — LOANS Loans at June 30, 2018 and December 31, 2017 are summarized as follows: June 30, 2018 (Dollars in thousands) Originated Acquired Non- Acquired Total Commercial: Commercial real estate $ $ $ $ Commercial business loans Commercial small business leases — Commercial construction — — Total commercial loans Residential: Residential real estate Total residential loans Consumer loans: Home equity & lines of credit Personal Education — — Automobile — — Total consumer loans Total loans Allowance for losses ) — — ) Loans, net $ $ $ $ December 31, 2017 (Dollars in thousands) Originated Acquired Non- Acquired Total Commercial: Commercial real estate $ $ $ $ Commercial business loans Commercial small business leases — Commercial construction — — Total commercial loans Residential: Residential real estate Total residential loans Consumer loans: Home equity & lines of credit Personal Education — — Automobile — — Total consumer loans Total loans Allowance for losses ) — — ) Loans, net $ $ $ $ During the three and six months ended June 30, 2018, the Company recorded a $523 thousand and $831 thousand net gain on the sale of $7.3 million and $12.1 million, respectively, of guaranteed Small Business Administration (“SBA”) loans that is included in “mortgage banking and SBA income” on the consolidated statements of income. As of June 30, 2018, the Bank retained the $4.0 million outstanding unguaranteed portion of the loans and the related servicing rights for the loans and receives a 1.0% servicing fee from the purchaser of the loans. As of June 30, 2018, the Company had $287 thousand residential loans held for sale compared to $245 thousand of residential loans held for sale at December 31, 2017. These loans are carried at the lower of cost or estimated fair value, on an aggregate basis. Loans held for sale are loans originated by the Bank to be sold to a third party who is under contractual obligation to purchase the loans from the Bank. During the three and six months ended June 30, 2018, the Bank sold residential mortgage loans with an unpaid principal balance of approximately $2.8 million and $4.7 million, respectively, and recorded mortgage banking income of approximately $180 thousand and $340 thousand, respectively. During the three and six months ended June 30, 2017, the Bank sold residential mortgage loans with an unpaid principal balance of approximately $4.8 million and $10.8 million, respectively, and recorded mortgage banking income of approximately $160 thousand and $385 thousand, respectively. The Bank retained the related servicing rights for the loans that were sold to Fannie Mae and receives a 25 basis point servicing fee from the purchaser of the loans. Please refer to Note 20 — Servicing Rights for additional information. Commercial loans include shared national credits, which are participations in loans or loan commitments of at least $20.0 million that are shared by three or more banks. Included in the shared national credit portfolio are purchased participations and assignments in leveraged lending transactions. Leveraged lending transactions are generally used to support a merger- or acquisition-related transaction, to back a recapitalization of a company’s balance sheet or to refinance debt. When considering a participation in the leveraged lending market, the Company will participate only in first lien senior secured term loans that are highly rated (investment grade) by the rating agencies and that trade in active secondary markets. The Company actively monitors the secondary market for these types of loans to ensure that it maintains flexibility to sell such loans in the event of deteriorating credit quality. To further minimize risk and based on our current capital levels and loan portfolio, the Company has limited the total amount of leveraged loans to $150.0 million with no single obligor exceeding $15.0 million while maintaining single industry concentrations below 30% of the leveraged lending limit. The Company may reevaluate these limits in future periods. The shared national credit loans are typically variable rate with terms ranging from one to seven years. At June 30, 2018, shared national credits totaled $209.2 million, which included $105.2 million of leveraged lending transactions. During the six months ended June 30, 2018, $3.1 million, or 41%, of a $7.6 million shared national credit previously rated doubtful was upgraded to substandard based on the results of a shared national credit examination performed by regulators. Management has established a $1.5 million specific valuation allowance to cover risk associated with this loan as of June 30, 2018 and December 31, 2017. All other shared national credits were classified as pass rated as of June 30, 2018 and December 31, 2017 as all payments are current and the loans are performing in accordance with their contractual terms. The Company’s accounting policies for shared national credits, including our charge off and reserve policy, are consistent with the significant accounting policies disclosed in our financial statements for our total loan portfolio. The Company underwrites all shared national credits consistent with our underwriting guidelines. All shared national credits are subject to annual reviews where the risk rating of the loan is evaluated. Additionally, the Company obtains quarterly financial information and performs a financial analysis on a regular basis to ensure that the borrower can comply with the financial terms of the loan. The information used in the analysis is provided by the borrower through the agent bank. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable losses inherent in the loan portfolio. The Company evaluates the appropriateness of the allowance for loan losses balance on loans on a quarterly basis. When additional allowances are necessary, a provision for loan losses is charged to earnings and, when less allowances are necessary, a credit is taken. As of June 30, 2018, the Company’s methodology for assessing the appropriateness of the allowance for loan losses consists of (1) a specific valuation allowance on identified problem loans and (2) a general valuation allowance on the remainder of the loan portfolio. The appropriate allowance level is estimated based upon factors and trends identified by the Company at the time the consolidated financial statements are prepared. Management continuously evaluates its allowance methodology. The Company charges-off the collateral or discounted cash flow deficiency on all loans at 90 days past due, except government guaranteed student loans, and all loans rated substandard or worse that are 90 days past due. As of June 30, 2018 and December 31, 2017, the Company maintained a $1.5 million specific valuation allowance for the previously mentioned shared national credit. The summary activity in the allowance for loan losses for all portfolios for the six months ended June 30, 2018 and 2017, and for the year ended December 31, 2017, is as follows: Six Months Ended Year Ended June 30, December 31, (Dollars in thousands) 2018 2017 2017 Balance, beginning of year $ $ $ Provision for loan losses Charge-offs ) ) ) Recoveries Balance, end of period $ $ $ The following tables set forth the activity in the allowance for loan losses by portfolio for the six months ended June 30, 2018 and the year ended December 31, 2017: COMMERCIAL RESIDENTIAL CONSUMER June 30, 2018 (Dollars in thousands) Real Business Small Construction Real Home Personal Education Auto Total Allowance for loan losses: Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) — ) ) ) ) ) ) Recoveries — Provision (credit) ) ) Allowance ending balance $ $ $ $ $ $ $ $ $ $ Allowance ending balance Individually evaluated for impairment $ — $ $ — $ — $ — $ — $ — $ — $ — $ Collectively evaluated for impairment Total Allowance $ $ $ $ $ $ $ $ $ $ Financing receivable: Ending balance Individually evaluated for impairment $ $ $ — $ — $ $ $ $ — $ — $ Collectively evaluated for impairment Acquired non-credit impaired loans (2) — — — Acquired credit impaired loans (1) — — — — Total Portfolio $ $ $ $ $ $ $ $ $ $ (1) Acquired credit impaired loans are evaluated on an individual basis. (2) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. COMMERCIAL RESIDENTIAL CONSUMER December 31, 2017 (Dollars in thousands) Real Business Small Construction Real Home Personal Education Auto Total Allowance for loan losses: Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) — ) ) ) ) ) ) Recoveries — Provision (credit) ) ) ) ) ) Allowance ending balance $ $ $ $ $ $ $ $ $ $ Allowance ending balance Individually evaluated for impairment $ — $ $ — $ — $ — $ — $ — $ — $ — $ Collectively evaluated for impairment Total Allowance $ $ $ $ $ $ $ $ $ $ Financing receivable: Ending balance Individually evaluated for impairment $ $ $ — $ — $ $ $ $ — $ — $ Collectively evaluated for impairment Acquired non-credit impaired loans (2) — — — Acquired credit impaired loans (1) — — — — Total Portfolio $ $ $ $ $ $ $ $ $ $ (1) Acquired credit impaired loans are evaluated on an individual basis. (2) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. The provision for loan losses charged to expense is based upon past loan loss experience and an evaluation of estimated losses in the current loan portfolio, including the evaluation of impaired loans under FASB ASC Topic 310 for Loans and Debt Securities. Under FASB ASC Topic 310 for Receivables, for all loan segments a loan is considered to be impaired when, based upon current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan. An insignificant delay or insignificant shortfall in amount of payments does not necessarily result in the loan being identified as impaired. When all or a portion of the loan is deemed uncollectible, the uncollectible portion is charged-off. The measurement is based either on the fair value of the collateral if the loan is collateral dependent, the liquidation value, or the present value of expected future cash flows discounted at the loan’s effective interest rate. Most of the Company’s commercial loans are collateral dependent and, therefore, the Company uses the value of the collateral to measure the loss. Any collateral or discounted cash flow deficiency for loans that are 90 days past due are charged-off. Impairment losses are included in the provision for loan losses. Large groups of homogeneous loans are collectively evaluated for impairment, except for those loans restructured under a troubled debt restructuring. Classified Loans The Bank’s credit review process includes a risk classification of all commercial and residential loans that includes pass, special mention, substandard and doubtful. The classification of a loan may change based on changes in the creditworthiness of the borrower. The description of the risk classifications are as follows: A loan is classified as pass when payments are current and it is performing under the original contractual terms. A loan is classified as special mention when the borrower exhibits potential credit weakness or a downward trend which, if not checked or corrected, will weaken the asset or inadequately protect the Bank’s position. While potentially weak, the borrower is currently marginally acceptable; no loss of principal or interest is envisioned. A loan is classified as substandard when the borrower has a well-defined weakness or weaknesses that jeopardize the orderly liquidation of the debt. A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor, normal repayment from this borrower is in jeopardy, and there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. A loan is classified as doubtful when a borrower has all weaknesses inherent in a loan classified as substandard with the added provision that: (1) the weaknesses make collection of debt in full on the basis of currently existing facts, conditions and values highly questionable and improbable; (2) serious problems exist to the point where a partial loss of principal is likely; and (3) the possibility of loss is extremely high, but because of certain important, reasonably specific pending factors which may work to the advantage and strengthening of the assets, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens and additional refinancing plans. In all cases, loans are placed on non-accrual when 90 days past due or earlier if collection of principal or interest is considered doubtful. The Company charges-off the collateral or discounted cash flow deficiency on all non-accrual loans. The following tables set forth the amounts and percentage of the portfolio of classified asset categories for the commercial and residential loan portfolios at June 30, 2018 and December 31, 2017: Commercial and Residential Loans Credit Risk Internally Assigned June 30, 2018 (Dollars in thousands) Commercial Real Commercial Small Business Commercial Residential Real Total Grade Pass Originated loans $ % $ % $ % $ % $ % $ % Acquired non-credit impaired loans % % % — — % % % Total Pass % % % % % % Special Mention Originated loans % % — — % — — % — — % — % Acquired non-credit impaired loans — % — % — — % — — % — — % — % Total Special Mention % % — — % — — % — — % — % Substandard Originated loans — % % — — % — — % — % — % Acquired non-credit impaired loans — % % — — % — — % — % — % Acquired credit impaired loans — % — % — — % — — % — % — % Total Substandard — % % — — % — — % — % — % Doubtful Originated loans — — % % — — % — — % — — % — % Total Doubtful — — % % — — % — — % — — % — % Total $ % $ % $ % $ % $ % $ % Commercial and Residential Loans Credit Risk Internally Assigned December 31, 2017 (Dollars in thousands) Commercial Real Commercial Small Business Commercial Residential Real Total Grade Pass Originated loans $ % $ % $ % $ % $ % $ % Acquired non- credit impaired loans % % % — — % % % Total Pass % % % % % % Special Mention Originated loans — % — % — — % — — % — — % — % Acquired non-credit impaired loans — % % — — % — — % — — % — % Total Special Mention — % % — — % — — % — — % — % Substandard Originated loans % % — — % — — % — % — % Acquired non-credit impaired loans — % % — — % — — % — % — % Acquired credit impaired loans — % — % — — % — — % — % — % Total Substandard % % — — % — — % — % — % Doubtful Originated loans — — % % — — % — — % — — % — % Total Doubtful — — % % — — % — — % — — % — % Total $ % $ % $ % $ % $ % $ % During 2017, one shared national credit with an outstanding balance of $7.6 million as of June 30, 2018 was downgraded to doubtful and changed to non-accrual status based on the results of a shared national credit examination performed by regulators. During the first quarter of 2018, $3.1 million, or 41%, of this balance was upgraded to substandard based on the results of the 2018 shared national credit examination performed by regulators. Management has established a $1.5 million specific valuation allowance to cover risk associated with this loan as of June 30, 2018 and December 31, 2017. The Bank’s credit review process is based on payment history for all consumer loans. The collateral deficiency on consumer loans is charged-off when they become 90 days delinquent with the exception of education loans which are guaranteed by the U.S. government. Non-performing consumer loans include loans on non-accrual status and education loans that are greater than 90 days delinquent. The following tables set forth the consumer loan risk profile based on payment activity as of June 30, 2018 and December 31, 2017: Consumer and Residential Loans Credit Risk Internally Assigned June 30, 2018 (Dollars in thousands) Home Equity & Personal Education Auto Total Performing Originated loans $ % $ % $ % $ % $ % Acquired non-credit impaired loans % % — — % — — % % Acquired credit impaired loans — % — % — — % — — % — % Total Performing % % % % % Nonperforming Originated loans % — % % — — % % Acquired non-credit impaired loans — % % — — % — — % — % Acquired credit impaired loans — — % — — % — — % — — % — — % Total Nonperforming % % % — — % % Total $ % $ % $ % $ % $ % December 31, 2017 (Dollars in thousands) Home Equity & Personal Education Auto Total Performing Originated loans $ % $ % $ % $ % $ % Acquired non-credit impaired loans % % — — % — — % % Acquired credit impaired loans — % — % — — % — — % — % Total Performing % % % % % Nonperforming Originated loans % % % — — % % Acquired non-credit impaired loans — % % — — % — — % — % Acquired credit impaired loans — — % — — % — — % — — % — — % Total Nonperforming % % % — — % % Total $ % $ % $ % $ % $ % Loans Acquired with Deteriorated Credit Quality The outstanding principal balance and related carrying amount of loans acquired with deteriorated credit quality, for which the Company applies the provisions of ASC 310-30, as of June 30, 2018, are as follows: June 30, (Dollars in thousands) 2018 Outstanding principal balance $ Carrying amount Loan Delinquencies and Non-accrual Loans The Company monitors the past due and non-accrual status of loans in determining the loss classification, impairment status and the allowance for loan losses. Generally, all loans past due 90 days or more are put on non-accrual status. Education loans greater than 90 days delinquent continue to accrue interest as they are U.S. government guaranteed with little risk of credit loss. The following tables provide information about delinquent and non-accrual loans in the Company’s portfolio at the dates indicated: Aged Analysis of Past Due and Non-accrual Financing Receivables As of June 30, 2018 Recorded 30-59 60-89 > 90 Investment Days Days Days Total Acquired Total >90 Days Past Past Past Past Credit Financing And Non- (Dollars in thousands) Due Due Due Due Impaired Current Receivables Accruing Accruing (1) Commercial: Commercial real estate $ % $ — — % $ % $ % $ $ % $ % $ — $ % Commercial business loans % % % % % % — % Commercial small business leases % % — % % — % % — — — % Commercial construction — — % — — % — — % — — % — % % — — — % Total commercial $ % $ % $ % $ % $ $ % $ % $ — $ % Residential: Residential real estate $ % $ % $ % $ % $ $ % $ % $ — $ % Total residential $ % $ % $ % $ % $ $ % $ % $ — $ % Consumer loans: Home equity & lines of credit $ % $ % $ % $ % $ $ % $ % $ — $ % Personal % — % — % % — % — % — % Education % % % % — % % — — % Automobile % % — — % % — % % — — — % Total consumer $ % $ % $ % $ % $ $ % $ % $ $ % Total $ % $ % $ % $ % $ $ % $ % $ $ % (1) Non-accruing loans do not include $2.7 million of acquired credit impaired loans, which have been recorded at their fair value at acquisition. Aged Analysis of Past Due and Non-accrual Financing Receivables As of December 31, 2017 Recorded 30-59 60-89 > 90 Investment Days Days Days Total Acquired Total >90 Days Past Past Past Past Credit Financing And Non- (Dollars in thousands) Due Due Due Due Impaired Current Receivables Accruing Accruing Commercial: Commercial real estate $ % $ % $ % $ % $ $ % $ % $ — $ % Commercial business loans % % % % % % — % Commercial small business leases % % — % % — % % — — — % Commercial construction — — % — — % — — % — — % — % % — — — % Total commercial $ % $ % $ % $ % $ $ % $ % $ — $ % Residential: Residential real estate $ % $ % $ % $ % $ $ % $ % $ — $ % Total residential $ % $ % $ % $ % $ $ % $ % $ — $ % Consumer loans: Home equity & lines of credit $ % $ % $ % $ % $ $ % $ % $ — $ % Personal % % % % — % — % — % Education % % % % — % % — — % Automobile % % — — % % — % % — — — % Total consumer $ % $ % $ % $ % $ $ % $ % $ $ % Total $ % $ % $ % $ % $ $ % $ % $ $ % (1) Non-accruing loans do not include $6.6 million of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition. Troubled Debt Restructured Loans The Bank determines whether a restructuring of debt constitutes a troubled debt restructuring (“TDR”) in accordance with guidance under FASB ASC Topic 310 Receivables. The Bank considers a loan a TDR when the borrower is experiencing financial difficulty and the Bank grants a concession that it would not otherwise consider but for the borrower’s financial difficulties. A TDR includes a modification of debt terms or assets received in satisfaction of the debt (including a foreclosure or a deed in lieu of foreclosure) or a combination of types. The Bank evaluates selective criteria to determine if a borrower is experiencing financial difficulty, including the ability of the borrower to obtain funds from sources other than the Bank at market rates. The Bank considers all TDR loans as impaired loans and, generally, they are put on non-accrual status. The Bank will not consider the loan a TDR if the loan modification was made for customer retention purposes and the modification reflects prevailing market conditions. The Bank’s policy for returning a loan to accruing status requires the preparation of a well-documented credit evaluation, which includes the following: · A review of the borrower’s current financial condition in which the borrower must demonstrate sufficient cash flow to support the repayment of all principal and interest including any amounts previously charged-off; · An updated appraisal or home valuation, which must demonstrate sufficient collateral value to support the debt; · Sustained performance based on the restructured terms for at least six consecutive months; and · Approval by the Special Assets Committee, which consists of the Chief Credit Officer, the Chief Financial Officer and other members of senior management. The following table summarizes loans whose terms were modified in a manner that met the definition of a TDR as of June 30, 2018 and 2017. June 30, June 30, 2018 2017 (Dollars in thousands) No. of Loans Balance No. of Loans Balance Commercial: Commercial real estate — $ — $ Commercial business loans — — Total commercial Residential: Residential real estate Total real estate loans Consumer loans: Home equity & lines of credit — — Total consumer loans — — Total loans $ $ The following tables summarize information about TDRs as of and for the six months ended June 30, 2018 and 2017: For the Six Months Ended (Dollars in thousands, except number of loans) No. of Loans Balance Loans modified during the period in a manner that met the definition of a TDR — $ — Modifications granted: Reduction of outstanding principal due — — Deferral of principal amounts due — — Temporary reduction in interest rate — — Deferral of interest due — — Below market interest rate granted — — Outstanding principal balance immediately before modification — — Outstanding principal balance immediately after modification — — Aggregate principal charge-off recognized on TDRs outstanding at period end since origination — — Outstanding principal balance at period end TDRs that re-defaulted subsequent to being modified (in the past twelve months) For the Six Months Ended (Dollars in thousands, except number of loans) No. of Loans Balance Loans modified during the period in a manner that met the definition of a TDR $ Modifications granted: Reduction of outstanding principal due — — Deferral of principal amounts due — — Temporary reduction in interest rate Deferral of interest due — — Below market interest rate granted — — Outstanding principal balance immediately before modification Outstanding principal balance immediately after modification Aggregate principal charge-off recognized on TDRs outstanding at period end since origination — — Outstanding principal balance at period end TDRs that re-defaulted subsequent to being modified (in the past twelve months) — — Impaired Loans Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures the extent of the impairment in accordance with guidance under FASB ASC Topic 310 for Receivables. The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value or discounted cash flows. However, collateral value is predominantly used to assess the fair value of an impaired loan. Those impaired loans not requiring an allowance represent loans for which the fair value of the collateral or expected repayments exceed the recorded investments in such loans. Components of Impaired Loans Impaired Loans Year to date June 30, 2018 (Dollars in thousands) Recorded Unpaid Related Average Interest Interest Impaired loans with no related specific allowance recorded: Commercial Real Estate $ $ $ — $ $ — $ — Commercial Business — — — Commercial small business leases — — — — — — Commercial Construction — — — — — — Residential Real Estate — — — Home Equity and Lines of Credit — — — Personal — — — Education — — — — — — Auto — — — — — Total Impaired Loans: $ $ $ — $ $ — $ — Impaired loans with a related specific allowance recorded: Commercial Business $ $ $ $ $ — $ — Total impaired loans with a related specific allowance recorded: $ $ $ $ $ — $ — Total Impaired Loans: Commercial $ $ $ $ $ — $ — Residential — — — Consumer — — — Total $ $ $ $ $ — $ — The impaired loans table above does not include $2.7 million of acquired credit impaired loans, which have been recorded at their fair value at acquisition. Impaired Loans For the Year Ended December 31, 2017 (Dollars in thousands) Recorded Unpaid Related Average Interest Interest Impaired loans with no related specific allowance recorded: Commercial Real Estate $ $ $ — $ $ $ — Commercial Business — — Commercial small business leases — — — — — — Commercial Construction — — — — — — Residential Real Estate — — — Home Equity and Lines of Credit — — — Personal — — — Education — — — — — — Auto — — — — — Total Impaired Loans: $ $ $ — $ $ $ — Impaired loans with a related specific allowance recorded: Commercial Business $ $ $ $ $ — $ — Total impaired loans with a related specific allowance recorded: $ $ $ $ $ — $ — Total Impaired Loans: Commercial $ $ $ $ $ $ — Residential — — — Consumer — — — Total $ $ $ $ $ $ — The impaired loans table above does not include $6.6 million of acquired credit impaired loans, which have been recorded at their fair value at acquisition. Generally, the Company will charge-off the collateral or discounted cash flow deficiency on all impaired loans. The Company determined that a $1.5 million specific valuation allowance for the previously mentioned shared national credit was required as of June 30, 2018 and December 31, 2017. Interest income that would have been recorded for the six months ended June 30, 2018, had impaired loans been current according to their original terms, amounted to $728 thousand. Non-performing loans (which include non-accrual loans and loans past due 90 days or more and still accruing) at June 30, 2018 and December 31, 2017 amounted to $43.1 million and $34.7 million, respectively, and included $22.2 million and $14.2 million, respectively, of government guaranteed student loans. The increase in past due government guaranteed loans is due to these loans coming out of deferment status during the six months ended June 30, 2018.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	6 Months Ended
	Jun. 30, 2018
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES	NOTE 8 — GOODWILL AND OTHER INTANGIBLES The goodwill and other intangible assets arising from acquisitions are accounted for in accordance with the accounting guidance in FASB ASC Topic 350 Intangibles - Goodwill and Other. As of June 30, 2018, the other intangibles consisted of $1.5 million of core deposit intangibles, which are amortized over an estimated useful life of ten years, and $959 thousand of customer list intangibles, which are amortized over an estimated useful life of between four and six years. Goodwill and other intangibles at June 30, 2018 are summarized below. (Dollars in thousands) Goodwill Intangibles Balance at January 1, 2018 $ $ Amortization — ) Balance at June 30, 2018 $ $ During 2017, management reviewed qualitative factors for the bank unit including financial performance, market changes and general economic conditions and noted there was not a significant change in any of these factors as compared to 2016. Accordingly, it was determined that it was more likely than not that the fair value of the banking unit continued to be in excess of its carrying amount as of December 31, 2017. As it relates to Beneficial Insurance Services, LLC the Company performed an impairment test as of September 30, 2017 which estimates the fair value of equity using discounted cash flow analyses as well as guideline company and guideline transaction information. The inputs and assumptions are incorporated in the valuations including projections of future cash flows, discount rates, the fair value of tangible and intangible assets and liabilities, and applicable valuation multiples based on the guideline information. Based on the Company’s latest annual impairment assessment of Beneficial Insurance Services, LLC, management believes that the fair value is in excess of the carrying amount. As a result, management concluded that there was no impairment of goodwill during the year ended December 31, 2017. During the six months ended June 30, 2018, the Company noted no indicators of impairment as it relates to goodwill or other intangibles.

OTHER ASSETS

OTHER ASSETS	6 Months Ended
	Jun. 30, 2018
OTHER ASSETS
OTHER ASSETS	NOTE 9 — OTHER ASSETS The following table provides selected information on other assets at June 30, 2018 and December 31, 2017: June 30, December 31, (Dollars in thousands) 2018 2017 Investments in affordable housing and other investments $ $ Prepaid assets Net deferred tax assets Servicing rights Interest rate swaps Other assets Total other assets $ $ The Company follows the authoritative guidance under ASC 860-50 - Servicing Assets and Liabilities to account for its servicing rights. The Company utilizes the fair value measurement method to value its servicing rights at fair value in accordance with ASC 860-50. Under the fair value measurement method, the Company measures its servicing rights at fair value at each reporting date and reports changes in the fair value of its servicing rights in earnings in the period in which the changes occur. See Note 20 for further discussion of servicing rights.

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2018
DEPOSITS
DEPOSITS	NOTE 10 — DEPOSITS Deposits consisted of the following major classifications at June 30, 2018 and December 31, 2017: June 30, % of Total December 31, % of Total (Dollars in thousands) 2018 Deposits 2017 Deposits Non-interest bearing deposits $ % $ % Interest-earning checking accounts % % Municipal checking accounts % % Money market accounts % % Savings accounts % % Certificates of deposit % % Total deposits $ % $ %

BORROWED FUNDS

BORROWED FUNDS	6 Months Ended
	Jun. 30, 2018
BORROWED FUNDS
BORROWED FUNDS	NOTE 11 — BORROWED FUNDS Borrowed funds at June 30, 2018 and December 31, 2017 are summarized as follows: (Dollars in thousands) June 30, December 31, FHLB advances $ $ Statutory trust debenture — Total borrowed funds $ $ During the first quarter of 2018, the Company paid off the statutory trust debenture of $25.4 million that was at a rate of 3.17%. The Company’s borrowing capacity with the FHLB of Pittsburgh is collateralized by loans. At June 30, 2018 and December 31, 2017, loans in the amount of $2.8 billion and $2.7 billion, respectively, collateralized the Company’s total borrowing capacity with the FHLB of Pittsburgh of $2.1 billion. At June 30, 2018, remaining borrowings available with the FHLB were $1.5 billion. The Company also pledges loans to secure its available borrowing capacity at the Federal Reserve Bank of Philadelphia. At June 30, 2018 and December 31, 2017, loans in the amount of $157.8 million and $193.6 million, respectively, were pledged to secure the Company’s borrowing capacity at the Federal Reserve Bank of Philadelphia of $121.2 million and $146.2 million, respectively.

OTHER LIABILITIES

OTHER LIABILITIES	6 Months Ended
	Jun. 30, 2018
OTHER LIABILITIES
OTHER LIABILITIES	NOTE 12 — OTHER LIABILITIES The following table provides selected information on other liabilities at June 30, 2018 and December 31, 2017: June 30, December 31, (Dollars in thousands) 2018 2017 Accrued pension and other postretirement benefits $ $ Other accrued expenses Mortgage escrow Deferred rent Accrued interest Income taxes payable — Other liabilities Total other liabilities $ $

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS	6 Months Ended
	Jun. 30, 2018
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS	NOTE 13 — REGULATORY CAPITAL REQUIREMENTS The Company and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. 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 the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Dodd-Frank Act required the Federal Reserve Board to promulgate consolidated capital requirements for depository institution holding companies that are no less stringent, both quantitatively and in terms of components of capital, than those applicable to institutions themselves. In early July 2013, the Federal Reserve Board and the Office of the Comptroller of the Currency approved revisions to their capital adequacy guidelines and prompt corrective action rules that implement the revised standards of the Basel Committee on Banking Supervision, commonly called Basel III, and address relevant provisions of the Dodd-Frank Act. “Basel III” refers to two consultative documents released by the Basel Committee on Banking Supervision in December 2009, the rules text released in December 2010, and loss absorbency rules issued in January 2011, which include significant changes to bank capital, leverage and liquidity requirements. In July 2013, the Federal Deposit Insurance Corporation and the Federal Reserve Board approved a new rule that substantially amended the regulatory risk-based capital rules applicable to Beneficial Bank and Beneficial Bancorp. The final rule implements the “Basel III” regulatory capital reforms and changes required by the Dodd-Frank Act. The rules include new risk-based capital and leverage ratios, which became effective on January 1, 2015, and revised the definition of what constitutes “capital” for purposes of calculating those ratios. The new minimum capital level requirements applicable to the Company and the Bank are: (1) a new common equity Tier 1 capital ratio of 4.5%; (2) a Tier 1 capital ratio of 6% (increased from 4%); (3) a total capital ratio of 8% (unchanged from current rules); and (4) a Tier 1 leverage ratio of 4% for all institutions. The rules also establish a “capital conservation buffer” of 2.5% above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital and would result in the following minimum ratios: (1) a common equity Tier 1 capital ratio of 7.0%, (2) a Tier 1 capital ratio of 8.5%, and (3) a total capital ratio of 10.5%. The new capital conservation buffer requirement started to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase by that amount each year until fully implemented in January 2019. An institution is also subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. As of June 30, 2018, the Company’s and the Bank’s current capital levels exceed the required capital amounts to be considered “well capitalized” and we believe they also meet the fully-phased in minimum capital requirements, including the related capital conservation buffers, as required by the Basel III capital rules. The following table summarizes the Company’s compliance with applicable regulatory capital requirements as of June 30, 2018 and December 31, 2017: To Be Well For Capital Under Prompt Actual Adequacy Purposes Action Provisions (Dollars in thousands) Capital Ratio Capital Ratio Capital Ratio As of June 30, 2018: Tier 1 Leverage (to average assets) $ % $ % $ % Common Equity Tier 1 Capital (to risk weighted assets) % % % Tier 1 Capital (to risk weighted assets) % % % Total Capital (to risk weighted assets) % % % As of December 31, 2017: Tier 1 Leverage (to average assets) $ % $ % $ % Common Equity Tier 1 Capital (to risk weighted assets) % % % Tier 1 Capital (to risk weighted assets) % % % Total Capital (to risk weighted assets) % % % The following table summarizes the Bank’s compliance with applicable regulatory capital requirements as of June 30, 2018 and December 31, 2017: To Be Well For Capital Under Prompt Actual Adequacy Purposes Action Provisions (Dollars in thousands) Capital Ratio Capital Ratio Capital Ratio As of June 30, 2018: Tier 1 Leverage (to average assets) $ % $ % $ % Common Equity Tier 1 Capital (to risk weighted assets) % % % Tier 1 Capital (to risk weighted assets) % % % Total Capital (to risk weighted assets) % % % As of December 31, 2017: Tier 1 Leverage (to average assets) $ % $ % $ % Common Equity Tier 1 Capital (to risk weighted assets) % % % Tier 1 Capital (to risk weighted assets) % % % Total Capital (to risk weighted assets) % % %

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
INCOME TAXES
INCOME TAXES	NOTE 14 — INCOME TAXES For the three months ended June 30, 2018, the Company recorded a provision for income taxes of $3.7 million, reflecting an effective tax rate of 23.9%, compared to a provision for income taxes of $4.7 million, reflecting an effective tax rate of 33.3%, for the three months ended June 30, 2017. For the six months ended June 30, 2018, we recorded a provision for income taxes of $6.5 million, reflecting an effective tax rate of 23.1%, compared to a provision for income taxes of $8.2 million, reflecting an effective tax rate of 31.6%, for the six months ended June 30, 2017. The decrease in the effective tax rate for the three and six months ended June 30, 2018 compared to the same periods a year ago was primarily due to the passage of the Tax Cuts and Jobs Act of 2017, which was enacted on December 22, 2017 and lowered the federal corporate tax rate to 21% from 35%. As of June 30, 2018, the Company had net deferred tax assets totaling $22.4 million. These deferred tax assets can only be realized if the Company generates sufficient taxable income in the future. If it cannot, a valuation allowance is established. The Company regularly evaluates the realizability of deferred tax asset positions. In determining whether a valuation allowance is necessary, the Company considers the level of taxable income in prior years to the extent that carry backs are permitted under current tax laws, as well as estimates of future pre-tax and taxable income and tax planning strategies that would, if necessary, be implemented. The Company currently maintains a valuation allowance for certain state net operating losses that management believes it is more likely than not that such deferred tax assets will not be realized. The Company expects to realize the remaining deferred tax assets over the allowable carry forward periods. Therefore, no valuation allowance is deemed necessary against its remaining federal or remaining state deferred tax assets as June 30, 2018. However, if an unanticipated event occurs that materially changes pre-tax and taxable income in future periods, an increase in the valuation allowance may become necessary and it could be material to the Company’s financial statements.

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFITS	6 Months Ended
	Jun. 30, 2018
PENSION AND OTHER POSTRETIREMENT BENEFITS
PENSION AND OTHER POSTRETIREMENT BENEFITS	NOTE 15 — PENSION AND OTHER POSTRETIREMENT BENEFITS The Bank has noncontributory defined benefit pension plans covering many of its employees. Additionally, the Company sponsors nonqualified supplemental employee retirement plans for certain participants. The Bank also provides certain postretirement benefits to qualified former employees. These postretirement benefits principally pertain to certain health and life insurance coverage. Information relating to these employee benefits program are included in the tables that follow. Effective June 30, 2008, the defined pension benefits for Bank employees were frozen at the current levels. Additionally, the Bank enhanced its 401(k) Plan and combined it with its Employee Stock Ownership Plan to fund employer contributions. Conestoga Bank had a defined benefit pension plan covering less than twenty employees. The Bank intends on combining this plan, which had been frozen by Conestoga Bank, into the Bank’s existing defined benefit pension plan. The components of net pension cost are as follows: Pension Benefits Other Postretirement Benefits Three Months Ended Three Months Ended (Dollars in thousands) 2018 2017 2018 2017 Service cost $ — $ — $ $ Interest cost Expected return on assets ) ) — — Amortization of loss Amortization of prior service cost — — ) ) Net periodic pension (benefit) cost $ ) $ ) $ $ Pension Benefits Other Postretirement Benefits Six Months Ended Six Months Ended 2018 2017 2018 2017 Service cost $ — $ — $ $ Interest cost Expected return on assets ) ) — — Amortization of loss Amortization of prior service cost — — ) ) Net periodic pension (benefit) cost $ ) $ ) $ $

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION	NOTE 16 — STOCK BASED COMPENSATION Stock-based compensation is accounted for in accordance with FASB ASC Topic 718 for Compensation — Stock Compensation . The Company establishes fair value for its equity awards to determine their cost. The Company recognizes the related expense for employees over the appropriate vesting period, or when applicable, service period, using the straight-line method. However, consistent with the guidance, the amount of stock-based compensation recognized at any date must at least equal the portion of the grant date value of the award that is vested at that date. As a result, it may be necessary to recognize the expense using a ratable method. Under the 2016 Omnibus Incentive Plan (“the 2016 Plan”), the Company has granted 2,598,658 of restricted stock awards to employees, officers and directors. The restricted stock awards granted to directors vest generally over a 12 to 31 month period and the restricted stock awards granted to employees and officers vest over a three year period. Restricted stock awards include performance awards granted to certain officers of the Company that will vest only if the Company exceeds threshold goals related to credit quality, return on average assets and total shareholder return. Upon the adoption of the 2016 Plan, the Company’s 2008 Equity Incentive Plan (“EIP”) was terminated. However, outstanding awards under the 2008 EIP remain in effect in accordance with their original terms. Compensation expense related to the stock awards is recognized ratably over the vesting period in an amount which totals the market price of the Company’s stock at the grant date. The expense recognized for the three and six months ended June 30, 2018 was $3.3 million and $6.6 million, respectively, compared to $3.4 million and $6.7 million, respectively, for the three and six months ended June 30, 2017. The following table summarizes the non-vested stock award activity for the six months ended June 30, 2018: Summary of Non-vested Stock Award Activity Number of Weighted Non-vested Stock Awards outstanding, January 1, 2018 $ Issued Vested ) Forfeited ) Non-vested Stock Awards outstanding, June 30, 2018 The following table summarizes the non-vested stock award activity for the three months ended June 30, 2017: Summary of Non-vested Stock Award Activity Number of Weighted Non-vested Stock Awards outstanding, January 1, 2017 $ Issued Vested ) Forfeited ) Non-vested Stock Awards outstanding, June 30, 2017 The fair value of the 977,919 shares that vested during the six months ended June 30, 2018 was $16.1 million. The fair value of the 870,133 shares that vested during the six months ended June 30, 2017 was $13.9 million. The 2008 EIP authorized the grant of options to officers, employees, and directors of the Company to acquire shares of common stock with an exercise price equal to the fair value of the common stock at the grant date. Options expire ten years after the date of grant, unless terminated earlier under the option terms. Options are granted at the then fair market value of the Company’s stock. The options were valued using the Black-Scholes option pricing model. The Company did not grant any options during the six months ended June 30, 2018 and 2017. All options issued contain vesting conditions that require the participant’s continued service. The options generally vest and are exercisable over five years. Compensation expense for the options totaled $143 thousand and $298 thousand for the three and six months ended June 30, 2018, respectively, compared to $236 thousand and $526 for the three and six months ended June 30, 2017. A summary of option activity as of June 30, 2018 and changes during the six month period ended June 30, 2018 is presented below: Number of Options Weighted Exercise January 1, 2018 $ Granted — — Exercised ) Forfeited — — Expired — — June 30, 2018 A summary of option activity as of June 30, 2017 and changes during the six month period ended June 30, 2017 is presented below: Number of Options Weighted Exercise January 1, 2017 $ Granted — — Exercised ) Forfeited ) Expired — — June 30, 2017 The weighted average remaining contractual term was approximately 4.48 years and the aggregate intrinsic value was $10.1 million for options outstanding as of June 30, 2018. As of June 30, 2018, exercisable options totaled 1,331,919 with an average weighted exercise price of $9.31 per share, a weighted average remaining contractual term of approximately 4.28 years, and an aggregate intrinsic value of $9.2 million. The weighted average remaining contractual term was approximately 5.01 years and the aggregate intrinsic value was $10.3 million for options outstanding as of June 30, 2017. As of June 30, 2017, exercisable options totaled 1,480,881 with an average weighted exercise price of $9.49 per share, a weighted average remaining contractual term of approximately 4.46 years, and an aggregate intrinsic value of $8.2 million. As of June 30, 2018, there was $485 thousand of total unrecognized compensation cost related to options and $14.2 million in unrecognized compensation cost related to non-vested stock awards granted. As of June 30, 2017, there was $1.3 million of total unrecognized compensation cost related to options and $25.4 million in unrecognized compensation cost related to non-vested stock awards granted. The average weighted lives for the option expense were 1.03 and 1.73 years as of June 30, 2018 and June 30, 2017, respectively. The average weighted lives for the stock award expense 1.37 and 2.05 years at June 30, 2018 and June 30, 2017, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 17 — COMMITMENTS AND CONTINGENCIES At June 30, 2018 and December 31, 2017, the Company had outstanding commitments to purchase or originate new loans or leases aggregating $78.9 million and $29.4 million, respectively, commitments to customers on available lines of credit of $450.8 million and $443.1 million, respectively, commitments to fund commercial construction and other advances of $206.0 million and $159.3 million, respectively, and standby letters of credit of $25.7 million and $29.4 million, respectively. Commitments are issued in accordance with the same policies and underwriting procedures as settled loans. The Bank had a reserve for its unfunded commitments of $125 thousand and $124 thousand at June 30, 2018 and December 31, 2017, respectively. The Company and its directors have been named in a lawsuit filed in Maryland state circuit court regarding compensation levels of directors in connection with equity awards granted in the second quarter of 2016 under the Company’s 2016 Omnibus Incentive Plan. The defendants believe the lawsuit, alleging breach of fiduciary duty and unjust enrichment under Maryland law, is without merit and intend to vigorously defend it. During the first quarter of 2018, the Company participated in a mediation at which time all parties to the lawsuit, including the Company’s insurance carrier, agreed to a proposed settlement of the lawsuit. The Company has denied any liability in connection with the lawsuit but agreed to a proposed settlement to avoid a costly and protracted process to litigate this matter. Notification of the settlement was sent to the shareholders in June 2018 and the terms of the settlement must be approved by the Maryland Court. The proposed settlement will not have a material impact on the Company’s financial statements. Periodically, there have been various claims and lawsuits against the Company, such as claims to enforce liens, condemnation proceedings on properties in which it holds security interests, claims involving the making and servicing of real property loans and other issues incident to its business. Except as discussed above, the Company is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, results of operations or cash flows.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2018
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	NOTE 18 — RECENT ACCOUNTING PRONOUNCEMENTS In June 2018, the FASB issued ASU 2018-07: Compensation—Stock Compensation (Topic 718)—Improvements to Nonemployee Share-Based Payment Accounting. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has historically applied the provisions of Topic 718 to its accounting for share based payment awards to the Company’s Board of Directors. As a result, the Company does not anticipate an impact to the consolidated financial statements. In February 2018, the FASB issued ASU 2018-02: Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the passage of the Tax Cuts and Jobs Act. The amendments in this update also require certain disclosures about stranded tax effects. Upon adoption of the ASU, an entity was required to disclose a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. As of December 31, 2017, the Company had $5.0 million of tax benefits stranded in accumulated OCI as a result of the passage of the Tax Cuts and Jobs Act. The Company early adopted the amendments in this update and elected to reclassify the $5.0 million of tax benefits stranded in accumulated OCI to retained earnings during the three months ended March 31, 2018. The Company’s policy for releasing income tax effects from accumulated other comprehensive income is to release them as investments are sold or mature and liabilities are extinguished. In August 2017, the FASB issued ASU 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company plans to adopt ASU 2017-12 on January 1, 2019. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. While the Company continues to assess all potential impacts of the standard, the Company currently expects adoption to have an immaterial impact to the consolidated financial statements. In March 2017, the FASB issued ASU 2017-07: Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Topic 715, Compensation—Retirement Benefits, requires an entity to present net periodic pension cost and net periodic postretirement benefit cost as a net amount that may be capitalized as part of an asset where appropriate. Users have communicated that the service cost component generally is analyzed differently from the other components of net periodic pension cost and net periodic postretirement benefit cost. To improve the consistency, transparency, and usefulness of financial information for users, the amendments in this update require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The Company’s current accounting treatment and presentation of net periodic pension cost and net periodic postretirement benefit cost is consistent with the provisions in ASU 2017-07. The Company adopted the amendments in this update during the three months ended June 30, 2018 and noted no impact to the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13: Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Topic 326 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this update are effective for fiscal years beginning after December 15, 2019. The Company is in the process of evaluating the impact of this guidance but expects that the impact will likely be material to the consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU 2016-02: Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is in the process of evaluating the impact of this guidance and anticipates an impact to the consolidated financial statements with regard to the Company’s operating lease agreements. In January 2016, the FASB issued ASU 2016-01: Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update also simplify the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted the amendments of this update during the three months ended March 31, 2018 and recorded a cumulative-effect adjustment of $123 thousand to retained earnings representing the unrealized holding gains on equity securities with a readily determinable fair value included in other comprehensive income as of January 1, 2018. In May 2014, the FASB issued ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) and subsequent updates. This ASU clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that requires an entity to identify the contract(s) 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 entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the guidance effective January 1, 2018 using the modified retrospective method. The Company’s revenue is the sum of net interest income and non-interest income. The scope of the guidance excludes nearly all net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. The Company completed its review and determined that the majority of non-interest income revenue streams are within the scope of the new standard. Non-interest income streams that are out of scope of the new standard include BOLI, sales of investment securities, mortgage banking activities, and certain items within service charges and other income. Management reviewed contracts related to service charges on deposits, investment advisory commissions and fee income, insurance commission and fee income and certain items within other service charges and other income. The Company evaluated the impact of this ASU on the Company’s various revenue streams and, upon adoption on January 1, 2018 and going forward, does not anticipate a material impact to the consolidated financial statements. The Company has included applicable disclosures regarding revenue recognition within Note 3 of these consolidated financial statements.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 19 — FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows authoritative guidance under FASB ASC Topic 820 for Fair Value Measurements and Disclosures which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The definition of fair value under ASC 820 is the exchange price. The guidance clarifies that the exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability in the market in which the reporting entity would transact for the asset or liability. The definition focuses on the price that would be received to sell the asset or paid to transfer the liability (an exit price), not the price that would be paid to acquire the asset or received to assume the liability (an entry price). The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Fair value is based on quoted market prices, when available. If listed prices or quotes are not available, fair value is based on fair value models that use market participant or independently sourced market data which include: discount rate, interest rate yield curves, credit risk, default rates and expected cash flow assumptions. In addition, valuation adjustments may be made in the determination of fair value. These fair value adjustments may include amounts to reflect counter party credit quality, creditworthiness, liquidity and other unobservable inputs that are applied consistently over time. These adjustments are estimated and, therefore, subject to significant management judgment, and at times, may be necessary to mitigate the possibility of error or revision in the model-based estimate of the fair value provided by the model. The methods described above may produce fair value calculations that may not be indicative of the net realizable value. While the Company believes its valuation methods are consistent with other financial institutions, the use of different methods or assumptions to determine fair values could result in different estimates of fair value. FASB ASC Topic 820 for Fair Value Measurements and Disclosures describes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt securities, equity securities and derivative contracts that are traded in an active exchange market as well as certain U.S. Treasury securities that are highly liquid and actively traded in over-the-counter markets. Level 2 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 for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted market prices that are traded less frequently than exchange traded assets and liabilities. The values of these items are determined using pricing models with inputs observable in the market or can be corroborated from observable market data. This category generally includes U.S. Government and agency mortgage-backed debt securities, corporate debt securities and derivative contracts. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Those assets which will continue to be measured at fair value on a recurring basis are as follows at June 30, 2018: Category Used for Fair Value Measurement (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Mortgage servicing rights $ — $ — $ $ SBA servicing rights — — Investment securities available for sale: U.S. GSE and agency notes — — Ginnie Mae guaranteed mortgage certificates — — GSE collateralized mortgage obligations (“CMOs”) — — GSE mortgage-backed securities — — Municipal bonds General obligation municipal bonds — — Corporate securities — — Equity securities — — Money market funds — — Mutual funds — — Interest rate swap agreements — — Total Assets $ $ $ $ Liabilities: Interest rate swap agreements and other contracts $ — $ $ — $ Total Liabilities $ — $ $ — $ Those assets which will continue to be measured at fair value on a recurring basis are as follows at December 31, 2017: Category Used for Fair Value Measurement (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Mortgage servicing rights $ — $ — $ $ SBA servicing rights — — Investment securities available for sale: U.S. GSE and agency notes — — Ginnie Mae guaranteed mortgage securities — — GSE collateralized mortgage obligations (“CMOs”) — GSE mortgage-backed securities — — Municipal bonds General obligation municipal bonds — — Corporate securities — Equity securities — — Money market funds — — Mutual funds — — Interest rate swap agreements — — Total Assets $ $ $ $ Liabilities: Interest rate swap agreements and other contracts $ — $ $ — $ Total Liabilities $ — $ $ — $ Level 1 Valuation Techniques and Inputs Included in this category are equity securities, money market funds, and mutual funds. To estimate the fair value of these securities, the Company utilizes observable quotations for the indicated security. Level 2 Valuation Techniques and Inputs The majority of the Company’s investment securities are reported at fair value utilizing Level 2 inputs. Prices of these securities are obtained through independent, third-party pricing services. Prices obtained through these sources include market derived quotations and matrix pricing and may include both observable and unobservable inputs. Fair market values take into consideration data such as dealer quotes, new issue pricing, trade prices for similar issues, prepayment estimates, cash flows, market credit spreads and other factors. The Company reviews the output from the third-party providers for reasonableness by considering the pricing consistency among securities with similar characteristics, where available, and comparing values with other pricing sources available to the Company. In general, the Level 2 valuation process uses the following significant inputs in determining the fair value of the different classes of investments: U.S. Government Sponsored Enterprise (GSE) and Agency Notes. Pricing evaluations are based on obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into the evaluation process. Evaluations are generated on a price, yield or spread basis as determined by the observed market data. Spreads and yields are calculated continuously throughout the day, as well as “end of day”. Ginnie Mae Guaranteed Mortgage Certificates. Pricing evaluations are based on issuer type, coupon and maturity. The Pool specific evaluation model takes into account pool level information supplied directly by the agency. For adjustable rate mortgages, the model takes into account indices, margin, periodic and life caps, next coupon adjustment date and the convertibility of the bond. GSE CMOs. For pricing evaluations, the pricing service, obtains and applies available direct market color (trades, covers, bids, offers and price talk) along with market color for similar bonds and GSE/Agency CMOs in general (including market research). Evaluations of tranches (non-volatile and volatile) are based on ICE Data Services interpretation of accepted market modeling, trading, and pricing conventions. GSE Mortgage-backed Securities. Included in this category are Fannie Mae and Freddie Mac fixed rate residential mortgage backed securities and Fannie Mae and Freddie Mac Adjustable Rate residential mortgage backed securities. Pricing evaluations are based on issuer type, coupon and maturity. The Pool specific evaluation model takes into account pool level information supplied directly by the GSE. For adjustable rate mortgages, the model takes into account indices, margin, periodic and life caps, next coupon adjustment date and the convertibility of the bond. Tax Exempt General Obligation Municipal Bonds. For pricing, the pricing service’s evaluators collect and analyze market data to determine how it should be applied to bonds within their assigned sectors. Bonds are adjusted throughout the day based on trades and other pertinent market information. Evaluators apply this information to individual bond evaluations and then extrapolate from the adjusted bond to the same issuer, the same sector and beyond when appropriate. Within a given sector, evaluators have the ability to make daily spread adjustments for various attributes that include, but are not limited to, discounts, premiums, credit, alternative minimum tax (AMT), use of proceeds, and callability. Corporate Securities. Pricing evaluations are based on obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into the evaluation process. Evaluations are generated on a price, yield or spread basis as determined by the observed market data. Spreads and yields are calculated continuously throughout the day, as well as “end of day”. Equities. For a regular price on listed securities (NYSE, NASDAQ, AMEX), ICE Data Services uses the last trade on any exchange where the security trades during regular trading hours. If the issue does not trade, the last bid from any exchange is used. If there is no trade or bid, the last trade or bid from the previous day is used, or the last day where there was a bid or trade, going back up to 90 days, is used. If there were no bids or trades in the last 90 days, an error message is returned by ICE Data Services. Interest Rate Swaps and Other Contracts. The Company’s valuation methodology for over-the-counter (“OTC”) derivatives includes an analysis of discount cash flows based on Overnight Index Swap (“OIS”) rates. Fully collateralized trades are discounted using OIS with no additional economic adjustments to arrive at fair value. Uncollateralized or partially-collateralized trades are also discounted at OIS, but include appropriate economic adjustments for funding costs (i.e., a LIBOR-OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. Level 3 Valuation Techniques and Inputs Servicing Rights. The Company determines the fair value of its servicing rights by estimating the amount and timing of future cash flows associated with the servicing rights and discounting the cash flows using market discount rates. The valuation includes the application of certain assumptions made by management of the Company, including prepayment projections, and prevailing assumptions used in the marketplace at the time of the valuation. The tables below presents all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2018 and 2017. For the Six Months Ended June 30, 2018 June 30, 2017 Level 3 Investments Only Mortgage Mortgage Balance, January 1, $ $ Additions Payments ) ) Increase in fair value due to changes in valuation inputs or assumptions Balance, June 30, $ $ For the Six Months Ended June 30, 2018 June 30, 2017 Level 3 Investments Only SBA Servicing SBA Servicing Balance, January 1, $ $ Additions Payments ) ) Decrease in fair value due to changes in valuation inputs or assumptions ) ) Balance, June 30, $ $ The Company also has assets that, under certain conditions, are subject to measurement at fair value on a non-recurring basis. These include assets that are measured at the lower of cost or market value and had a fair value below cost at the end of the period as summarized below. A loan is impaired when, based on current information, the Company determines that it is probable that the Company will be unable to collect amounts due according to the terms of the loan agreement. The Company’s impaired loans are measured based on the estimated fair value of the collateral if the loans are collateral dependent or based on a discounted cash flow analysis if the loans are not collateral dependent. Assets measured at fair value on a nonrecurring basis are as follows: Balance (Dollars in thousands) June 30, 2018 Level 1 Level 2 Level 3 Gains/(Losses) Impaired loans $ $ — $ — $ $ ) Other real estate owned — — — Balance (Dollars in thousands) June 30, 2017 Level 1 Level 2 Level 3 Gains/(Losses) Impaired loans $ $ — $ — $ $ ) Other real estate owned — — — In accordance with FASB ASC Topic 825 for Financial Instruments, Disclosures about Fair Value of Financial Instruments, the Company is required to disclose the fair value of financial instruments. The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a distressed sale. Fair value is best determined using observable market prices; however for many of the Company’s financial instruments no quoted market prices are readily available. In instances where quoted market prices are not readily available, fair value is determined using present value or other techniques appropriate for the particular instrument. These techniques involve some degree of judgment, and as a result, are not necessarily indicative of the amounts the Company would realize in a current market exchange. Different assumptions or estimation techniques may have a material effect on the estimated fair value. The following table sets forth the carrying and estimated fair value of the Company’s financial assets and liabilities for the periods indicated: Fair Value of Financial Instruments At At Estimated Estimated Fair Value Carrying Fair Carrying Fair (Dollars in thousands) Hierarchy Level Amount Value Amount Value Assets: Cash and cash equivalents Level 1 $ $ $ $ Securities available for sale See previous table Securities held to maturity Level 2 FHLB stock Level 3 Loans and leases, net Level 3 Loans held for sale Level 2 Mortgage servicing rights Level 3 SBA servicing rights Level 3 Interest rate swaps Level 2 Accrued interest receivable Level 3 Liabilities: Checking, Money Market & Savings Level 1 Certificates of Deposit Level 2 Borrowed funds Level 2 Interest rate swaps and other contracts Level 2 Accrued interest payable Level 2 Cash and Cash Equivalents - For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value. Securities Available for Sale and Held to Maturity - The fair value of investment securities, mortgage-backed securities and collateralized mortgage obligations is based on quoted market prices, dealer quotes, yield curve analysis, and prices obtained from independent pricing services. FHLB Stock - The fair value of FHLB stock is estimated at its carrying value and redemption price of $100 per share. Loans and Leases, Net - The fair value of loans and leases is estimated by discounting the future cash flows using the current rate at which similar loans and leases would be made to borrowers with similar credit and for the same remaining maturities. Additionally, to be consistent with the requirements under FASB ASC Topic 820 for Fair Value Measurements and Disclosures, the loans and leases were valued at a price that represents the Company’s exit price or the price at which these instruments would be sold or transferred. Loans Held for Sale - The fair value of loans held for sale is estimated using the current rate at which similar loans would be made to borrowers with similar credit risk and the same remaining maturities. Loans held for sale are carried at the lower of cost or estimated fair value. Servicing Rights - The Company determines the fair value of its servicing rights by estimating the amount and timing of future cash flows associated with the servicing rights and discounting the cash flows using market discount rates. The valuation included the application of certain assumptions made by management of the Bank, including prepayment projections, and prevailing assumptions used in the marketplace at the time of the valuation. Interest Rate Swaps and Other Contracts - The Company’s valuation methodology for OTC derivatives includes an analysis of discount cash flows based on OIS rates. Fully collateralized trades are discounted using OIS with no additional economic adjustments to arrive at fair value. Uncollateralized or partially-collateralized trades are also discounted at OIS, but include appropriate economic adjustments for funding costs (i.e., a LIBOR-OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. Beginning January 1, 2013, the Company made the changes to better align its inputs, assumptions, and pricing methodologies with those used in its principal market by most dealers and major market participants. These changes in valuation methodology were applied prospectively as a change in accounting estimate and were immaterial to the Company’s financial statements. Accrued Interest Receivable/Payable - The carrying amounts of interest receivable/payable approximate fair value. Deposits - The fair value of checking and money market deposits and savings accounts is the amount reported in the consolidated financial statements. The carrying amount of checking, savings and money market accounts is the amount that is payable on demand at the reporting date. The fair value of time deposits is generally based on a present value estimate using rates currently offered for deposits of similar remaining maturity. Borrowed Funds - The fair value of borrowed funds is based on a present value estimate using rates currently offered. Commitments to Extend Credit and Letters of Credit - The majority of the Company’s commitments to extend credit and letters of credit carry current market interest rates if converted to loans and are not included in the table above. Because commitments to extend credit and letters of credit are generally unassignable by either the Company or the borrower, they only have value to the Company and the borrower. The estimated fair value approximates the recorded net deferred fee amounts, which are not significant. The fair value estimates presented herein are based on pertinent information available to management as of June 30, 2018 and December 31, 2017. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since June 30, 2018 and December 31, 2017 and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.

SERVICING RIGHTS

SERVICING RIGHTS	6 Months Ended
	Jun. 30, 2018
SERVICING RIGHTS
SERVICING RIGHTS	NOTE 20 — SERVICING RIGHTS The Company sells certain residential mortgage loans and the guaranteed portion of certain Small Business Administration (“SBA”) loans to third parties and retains servicing rights and receives servicing fees. All such transfers are accounted for as sales. When the Company sells a residential mortgage loan, it does not retain any portion of that loan and its continuing involvement in such transfers is limited to certain servicing responsibilities. While the Company may retain a portion of certain sold SBA loans, its continuing involvement in the portion of the loan that was sold is limited to certain servicing responsibilities. When the contractual servicing fees on loans sold with servicing retained are expected to be more than adequate compensation to a servicer for performing the servicing, a capitalized servicing asset is recognized. The Company accounts for the transfers and servicing of financial assets in accordance with ASC 860, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. Residential Mortgage Loans The Company has elected the fair value measurement method to value its mortgage servicing rights (“MSRs”). Under the fair value measurement method, the Company records its MSRs on its consolidated statements of financial condition as a component of other assets at fair value with changes recorded as a component of mortgage banking income in the Company’s consolidated statements of income for each period. As of June 30, 2018 and June 30, 2017, the Company serviced $129.2 million and $135.1 million of residential mortgage loans, respectively. During the three and six months ended June 30, 2018, the Company recognized servicing fee income of $80 thousand and $163 thousand, respectively, compared to $85 thousand and $172 thousand during the three and six months ended June 30, 2017, respectively. The following is an analysis of the activity in the Company’s residential MSRs for the six months ended June 30, 2018 and 2017: Residential Mortgage Servicing Rights For the Six Months Ended June 30, Dollars in thousands 2018 2017 Balance, January 1, $ $ Additions Increases (decreases) in fair value due to: Changes in valuation input or assumptions Paydowns ) ) Balance, June 30, $ $ The Company uses assumptions and estimates in determining the fair value of MSRs. These assumptions include prepayment speeds, discount rates, escrow earnings rates and other assumptions. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At June 30, 2018, the key assumptions used to determine the fair value of the Company’s MSRs included a lifetime constant prepayment rate equal to 6.46%, a discount rate equal to 10.13% and an escrow earnings credit rate equal to 2.89%. At June 30, 2017, the key assumptions used to determine the fair value of the Company’s MSRs included a lifetime constant prepayment rate equal to 8.04%, a discount rate equal to 9.63% and an escrow earnings credit rate equal to 1.90%. At June 30, 2018 and June 30, 2017, the sensitivity of the current fair value of the residential mortgage servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. Residential Residential Mortgage Servicing Rights Mortgage Servicing Rights (Dollars in thousands) June 30, 2018 June 30, 2017 Fair value of residential mortgage servicing rights $ $ Weighted average life (years) 9.2 years 8.0 years Prepayment speed % % Effect on fair value of a 20% increase $ ) $ ) Effect on fair value of a 10% increase ) ) Effect on fair value of a 10% decrease Effect on fair value of a 20% decrease Discount rate % % Effect on fair value of a 20% increase $ ) $ ) Effect on fair value of a 10% increase ) ) Effect on fair value of a 10% decrease Effect on fair value of a 20% decrease Escrow earnings credit % % Effect on fair value of a 20% increase $ $ Effect on fair value of a 10% increase Effect on fair value of a 10% decrease ) ) Effect on fair value of a 20% decrease ) ) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change. SBA Loans The Company has elected the fair value measurement method to value its SBA loan servicing rights. Under the fair value measurement method, the Company records its SBA loan servicing asset on its consolidated statements of financial condition as a component of other assets at fair value with changes recorded as a component of other non-interest income in the Company’s consolidated statements of income for each period. As of June 30, 2018 and June 30, 2017, the Company serviced $61.3 million and $49.0 million of SBA loans, respectively. During the three and six months ended June 30, 2018, the Company recognized servicing fee income of $132 thousand and $252 thousand, respectively, compared to $113 thousand and $233 thousand for the three and six months ended June 30, 2017, respectively. The following is an analysis of the activity in the Company’s SBA servicing rights for the six months ended June 30, 2018 and June 30, 2017: SBA Servicing Rights For the Six Months Ended June 30, Dollars in thousands 2018 2017 Balance, January 1, $ $ Additions Decreases in fair value due to: Changes in valuation input or assumptions ) ) Paydowns ) ) Balance, June 30, $ $ The Company uses assumptions and estimates in determining the fair value of SBA servicing rights. These assumptions include prepayment speeds, discount rates, escrow earnings rates and other assumptions. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At June 30, 2018, the key assumptions used to determine the fair value of the Company’s SBA servicing rights included a lifetime constant prepayment rate equal to 9.80%, a discount rate equal to 13.63% and servicing expenses per loan of $1 thousand. At June 30, 2017, the key assumptions used to determine the fair value of the Company’s SBA servicing rights included a lifetime constant prepayment rate equal to 8.91%, a discount rate equal to 13.13% and servicing expenses per loan of $1 thousand. At June 30, 2018 and June 30, 2017, the sensitivity of the current fair value of the SBA servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. SBA Servicing Rights SBA Servicing Rights (Dollars in thousands) June 30, 2018 June 30, 2017 Fair value of SBA servicing rights $ $ Weighted average life (years) 5.3 years 5.6 years Prepayment speed % % Effect on fair value of a 20% increase $ ) $ ) Effect on fair value of a 10% increase ) ) Effect on fair value of a 10% decrease Effect on fair value of a 20% decrease Discount rate % % Effect on fair value of a 20% increase $ ) $ ) Effect on fair value of a 10% increase ) ) Effect on fair value of a 10% decrease Effect on fair value of a 20% decrease The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the SBA servicing rights is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2018
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 21 — DERIVATIVE FINANCIAL INSTRUMENTS The Company is a party to derivative financial instruments in the normal course of business to meet the needs of commercial banking customers. These financial instruments primarily include interest rate swap agreements, which are entered into with counterparties that meet established credit standards and, where appropriate, contain master netting and collateral provisions protecting the party at risk. The Company believes that the credit risk inherent in all of the derivative contracts is minimal based on the credit standards and the netting and collateral provisions of the interest rate swap agreements. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. These derivatives are not designated as hedges and are not speculative. Rather, these derivatives result from a service the Company provides to certain customers. As the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of June 30, 2018, the Company had 24 interest rate swaps with an aggregate notional amount of $133.6 million related to this program. During the three and six months ended June 30, 2018, the Company recognized a net gain of $11 thousand and $57 thousand, respectively, compared to a net loss of $33 thousand and $41 thousand, respectively, for the same periods in 2017 related to interest rate swap agreements that are included as a component of services charges and other non-interest income in the Company’s consolidated statements of income. Under certain circumstances, when the Company purchases a portion of a commercial loan that has an existing interest rate swap, it enters a risk participation agreement with the counterparty and assumes the credit risk of the loan customer related to the swap. The Company has entered into five risk participation agreements with a notional value of $7.9 million and a fair value of $2 thousand as of June 30, 2018. During the three and six months ended June 30, 2018, the Company recognized a net gain of $1 and $2 thousand, respectively, compared to a net gain of $2 thousand recognized during the six months ended June 30, 2017 related to the risk participation agreements that are included as a component of services charges and other noninterest income in the Company’s consolidated statements of income. During the three months ended June 30, 2017, the Company did not recognize a gain or loss related to the risk participation agreements. The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of financial condition as of June 30, 2018 and December 31, 2017: Asset derivatives Liability derivatives As of June 30, 2018 Notional Notional (Dollars in thousands) amount Fair value (1) amount Fair value (2) Interest rate swap agreements $ $ $ $ Risk participation agreements — — Total derivatives $ $ $ $ (1) Included in other assets in our Consolidated Statements of Financial Condition. (2) Included in other liabilities in our Consolidated Statements of Financial Condition. As of December 31, 2017 Asset derivatives Liability derivatives (dollars in thousands) Notional Fair value (1) Notional Fair value (2) Interest rate swap agreements $ $ $ $ Risk participation agreements — — Total derivatives $ $ $ $ (1) Included in other assets in our Consolidated Statements of Financial Condition. (2) Included in other liabilities in our Consolidated Statements of Financial Condition. The following displays offsetting interest rate swap assets and liabilities for the dates presented: Offsetting of Derivative Assets Gross Gross Amounts Net Amounts of Gross Amounts Not Offset in the Amounts of Offset in the Assets presented in Statement of Financial Condition As of June 30, 2018 Recognized Statement of the Statement of Financial Collateral Net Amount Interest rate swaps and risk participation agreements $ $ — $ $ — $ $ Offsetting of Derivative Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset in the Amounts of Offset in the Liabilities presented Statement of Financial Condition As of June 30, 2018 Recognized Statement of in the Statement of Financial Collateral Net Amount Interest rate swaps and risk participation agreements $ $ — $ $ — $ — $ (1) - Balance includes accrued interest receivable/payable and credit valuation adjustments. Offsetting of Derivative Assets Gross Gross Amounts Net Amounts of Gross Amounts Not Offset in the Amounts of Offset in the Assets presented in Statement of Financial Condition As of December 31, 2017 Recognized Statement of the Statement of Financial Collateral Net Amount Interest rate swaps $ $ — $ $ — $ $ Offsetting of Derivative Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset in the Amounts of Offset in the Liabilities presented Statement of Financial Condition As of December 31, 2017 Recognized Statement of in the Statement of Financial Collateral Net Amount Interest rate swaps $ $ — $ $ — $ — $ (1) - Balance includes accrued interest receivable/payable and credit valuation adjustments. The following tables present offsetting interest rate swap assets and liabilities as of March 31, 2013 and December 31, 2012: The Company has agreements with certain of its derivative counterparties that provide that 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 provide that if the Company fails to maintain its status as a well or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. As of June 30, 2018, the termination value of the interest rate swaps and risk participation agreements in a liability position was $2.9 million. The Company has minimum collateral posting thresholds with its counterparty. At June 30, 2018, the Company had no securities pledged as collateral on interest rate swaps. Counterparties posted collateral on interest rate swaps in the amount of $2.6 million at June 30, 2018. If the Company had breached any of these provisions at June 30, 2018 it would have been required to settle its obligation under the agreement at the termination value and could have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the counterparty. The Company had not breached any provisions at June 30, 2018. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives designated as cash flow hedges are to add stability to interest expense on borrowings and to manage its exposure to interest rate movements. To accomplish these objectives, the Company has entered into one forward starting interest rate swap with a notional amount of $200.0 million with a commercial bank effective April 1, 2019 and maturing April 1, 2024 as part of its interest rate risk management strategy. This interest rate swap is designated as a cash flow hedge and involves the receipt of variable rate amounts from the counterparty in exchange for the Company making fixed interest payments. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income (outside of earnings), net of tax, and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The Company did not recognize any hedge ineffectiveness in earnings during the period ended June 30, 2018. The table below presents the fair value of the Company’s derivative financial instruments designated as hedging instruments as well as their classification on the consolidated statements of condition as of June 30, 2018 and December 31, 2017: Asset derivatives As of June 30, 2018 Notional (dollars in thousands) amount Fair value (1) Interest rate swap agreements $ $ Total derivatives $ $ (1) Included in other assets in our Consolidated Statements of Financial Condition. As of December 31, 2017 Asset derivatives (dollars in thousands) Notional amount Fair value (1) Interest rate swap agreements $ $ Total derivatives $ $ (1) Included in other assets in our Consolidated Statements of Financial Condition. At June 30, 2018, the counterparty posted collateral on the cash flow hedge in the amount of $5.8 million. The Company estimated that none of the existing gains that are reported in accumulated other comprehensive income at June 30, 2018 and December 31, 2017 are expected to be reclassified into earnings within the next twelve months. The table below presents the pre-tax net gains of the Company’s cash flow hedge for the periods ended June 30, 2018 and December 31, 2017 and where they were recorded in our Consolidated Statements of Financial Condition. As of June 30, 2018 Derivatives in Cash Flow Hedging Relationships Amount of Gain Amount of Gain Interest rate swap agreements $ $ — Total derivatives $ $ — As of December 31, 2017 Derivatives in Cash Flow Hedging Relationships Amount of Gain Amount of Gain Interest rate swap agreements $ $ — Total derivatives $ $ —

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 22 — SUBSEQUENT EVENTS On July 20, 2018, the Company announced a cash dividend of 6 cents per share, payable on or after August 9, 2018, to common shareholders of record at the close of business on July 30, 2018.

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto contained in the Annual Report on Form 10-K filed by Beneficial Bancorp, Inc. (the “Company” or “Beneficial”) with the U.S. Securities and Exchange Commission on February 28, 2018. The results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 or any other period.
Principles of Consolidation	Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Specifically, the financial statements include the accounts of Beneficial Bank (the “Bank”), the Company’s wholly owned subsidiary, and the Bank’s wholly and majority owned subsidiaries. The Bank’s wholly and majority owned subsidiaries include: (i) Neumann Finance Company, a majority owned subsidiary, formed to originate small business leases, (ii) Neumann Corporation, a Delaware corporation formed to manage certain investments, (iii) Beneficial Insurance Services, LLC, which provides insurance services to individual and business customers and (iv) Beneficial Equipment Finance Corporation (formerly BSB Union Corporation), an equipment leasing company. Additionally, the Bank has subsidiaries that hold other real estate acquired in foreclosure or transferred from the Bank’s real estate loan portfolio. All significant intercompany accounts and transactions have been eliminated. The various services and products support each other and are interrelated. Management makes significant operating decisions based upon the analysis of the entire Company and financial performance is evaluated on a company-wide basis. Accordingly, the various financial services and products offered are included in one reportable operating segment: community banking as outlined under guidance in the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC” or “codification”) Topic 280 for Segment Reporting.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements These unaudited interim condensed consolidated financial statements are prepared in conformity with GAAP. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates include the allowance for loan losses, goodwill, other intangible assets, income taxes, postretirement benefits, and the fair value of investment securities. Actual results could differ from those estimates and assumptions.

NON-INTEREST INCOME (Tables)

NON-INTEREST INCOME (Tables)	6 Months Ended
	Jun. 30, 2018
NON-INTEREST INCOME
Schedule of company's non-interest income	For the Three Months Ended For the Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Insurance commission income $ $ $ $ Debit card interchange fee income Returned check charges Bank owned life insurance Limited partnership losses and amortization ) ) ) ) Other service charges Mortgage banking & SBA income Net gain (loss) on investment securities ) ) Total non-interest income $ $ $ $

CHANGES IN AND RECLASSIFICATI35

CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2018
CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Schedule of changes in the balances of each component of accumulated other comprehensive income	(Dollars in thousands) Net unrealized Net Defined Cash Flow Total Beginning balance, January 1, 2018 $ ) $ — $ ) $ $ ) Changes in other comprehensive loss before reclassifications: Unrealized holding losses on AFS securities ) — — — ) Accretion of unrealized losses on AFS securities transferred to HTM — — Unrealized gain on cash flow hedge — — — Amount reclassified from accumulated other comprehensive loss — — Total changes in current-period other comprehensive loss before reclassifications ) — Changes in other comprehensive loss as a result of reclassifications: Effect of adoption of ASU 2016-01 equity securities — ) — — ) Reclassification due to the adoption of ASU No. 2018-02 ) — ) ) Total changes in other comprehensive loss as a result of reclassifications ) ) ) ) Net other comprehensive (loss) income ) ) ) ) Ending balance, June 30, 2018 $ ) $ ) $ ) $ $ ) Net unrealized holding gains on available-for-sale Defined benefit (Dollars in thousands) securities pension plan items Total Beginning balance, January 1, 2017 $ ) $ ) $ ) Changes in other comprehensive loss before reclassifications: Unrealized holding gains on AFS securities — Accretion of unrealized losses on AFS securities transferred to HTM — Amount reclassified from accumulated other comprehensive loss Net current-period other comprehensive income Ending balance, June 30, 2017 $ ) $ ) $ )
Schedule of reclassifications out of AOCI by component	For the Six Months Ended June 30, 2018 (Dollars in thousands) Details about accumulated Amount reclassified Affected line item in other comprehensive loss from accumulated other the consolidated statements Components comprehensive loss of operations Unrealized gains and losses on available-for-sale securities $ Net loss on sale of investment securities — Income tax benefit $ Net of tax Amortization of defined benefit pension items Prior service costs $ )(1) Other non-interest expense Net recognized actuarial losses (1) Other non-interest expense $ Total before tax ) Income tax benefit $ Net of tax (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. See Note 15 - Pension and Other Postretirement Benefits for additional details. For the Six Months Ended June 30, 2017 (Dollars in thousands) Details about accumulated Amount reclassified Affected line item in other comprehensive loss from accumulated other the consolidated statements Components comprehensive loss of operations Unrealized gains and losses on available-for-sale securities $ Net loss on sale of investment securities ) Income tax benefit $ Net of tax Amortization of defined benefit pension items Prior service costs $ )(1) Other non-interest expense Net recognized actuarial losses (1) Other non-interest expense $ Total before tax ) Income tax benefit $ Net of tax (1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. See Note 15 - Pension and Other Postretirement Benefits for additional details.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
EARNINGS PER SHARE
Schedule of calculation of basic and diluted earnings per share	Three Months Ended Six Months Ended (Dollars in thousands, except share and per share amounts) 2018 2017 2018 2017 Basic and diluted earnings per share: Net income $ $ $ $ Net income allocated to unvested restricted stock ) ) ) ) Net income allocated to common shares $ $ $ $ Basic average common shares outstanding Effect of dilutive securities Dilutive average shares outstanding Net earnings per share Basic $ $ $ $ Diluted $ $ $ $

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2018
INVESTMENT SECURITIES
Amortized cost and estimated fair value of investments in debt and equity securities	June 30, 2018 Investment Securities Available-for-Sale Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Equity securities $ $ $ — $ U.S. Government Sponsored Enterprise (“GSE”) and Agency notes — Ginnie Mae guaranteed mortgage certificates — GSE mortgage-backed securities GSE collateralized mortgage obligations Municipal bonds — Corporate securities Money market and mutual funds — Total $ $ $ $ June 30, 2018 Investment Securities Held-to-Maturity Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value GSE mortgage-backed securities $ $ $ $ GSE & Agency collateralized mortgage obligations — Municipal bonds — Foreign bonds — Total $ $ $ $ December 31, 2017 Investment Securities Available-for-Sale Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value Equity securities $ $ $ — $ U.S. Government Sponsored Enterprise (“GSE”) and Agency notes — Ginnie Mae guaranteed mortgage certificates — GSE mortgage-backed securities Collateralized mortgage obligations Municipal bonds — Corporate securities — Money market and mutual funds — Total $ $ $ $ December 31, 2017 Investment Securities Held-to-Maturity Gross Gross Estimated Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value GSE mortgage-backed securities $ $ $ $ Collateralized mortgage obligations — Municipal bonds — Foreign bonds — Total $ $ $ $
Summary of continuous unrealized loss position for periods of less than 12 months and 12 months or longer	At June 30, 2018 Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized (Dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government Sponsored Enterprise (“GSE”) and Agency notes $ $ $ — $ — $ $ Mortgage-backed securities Corporate securities — — Collateralized mortgage obligations Foreign Bond — — Subtotal, debt securities Mutual funds — — Total $ $ $ $ $ $ At December 31, 2017 Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized (Dollars in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government Sponsored Enterprise (“GSE”) and Agency Notes $ $ $ — $ — $ $ Mortgage-backed securities Collateralized mortgage obligations Subtotal, debt securities $ $ $ $ $ $ Mutual funds — — Total $ $ $ $ $ $
Summary of maturities investment securities	June 30, 2018 December 31, 2017 Amortized Estimated Amortized Estimated (Dollars are in thousands) Cost Fair Value Cost Fair Value Available-for-sale: Due in one year or less $ — $ — $ — $ — Due after one year through five years Due after five years through ten years Due after ten years — — — — Mortgage-backed securities Equity securities Money market and mutual funds Total $ $ $ $ Held-to-maturity: Due in one year or less $ $ $ $ Due after one year through five years Due after five years through ten years — — — — Due after ten years — — — — Mortgage-backed securities Total $ $ $ $

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2018
LOANS
Summary of loans	June 30, 2018 (Dollars in thousands) Originated Acquired Non- Acquired Total Commercial: Commercial real estate $ $ $ $ Commercial business loans Commercial small business leases — Commercial construction — — Total commercial loans Residential: Residential real estate Total residential loans Consumer loans: Home equity & lines of credit Personal Education — — Automobile — — Total consumer loans Total loans Allowance for losses ) — — ) Loans, net $ $ $ $ December 31, 2017 (Dollars in thousands) Originated Acquired Non- Acquired Total Commercial: Commercial real estate $ $ $ $ Commercial business loans Commercial small business leases — Commercial construction — — Total commercial loans Residential: Residential real estate Total residential loans Consumer loans: Home equity & lines of credit Personal Education — — Automobile — — Total consumer loans Total loans Allowance for losses ) — — ) Loans, net $ $ $ $
Summary of activity in the allowance for loan losses	Six Months Ended Year Ended June 30, December 31, (Dollars in thousands) 2018 2017 2017 Balance, beginning of year $ $ $ Provision for loan losses Charge-offs ) ) ) Recoveries Balance, end of period $ $ $
Summary of activity in the allowance for loans and recorded investment by loan portfolio	COMMERCIAL RESIDENTIAL CONSUMER June 30, 2018 (Dollars in thousands) Real Business Small Construction Real Home Personal Education Auto Total Allowance for loan losses: Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) — ) ) ) ) ) ) Recoveries — Provision (credit) ) ) Allowance ending balance $ $ $ $ $ $ $ $ $ $ Allowance ending balance Individually evaluated for impairment $ — $ $ — $ — $ — $ — $ — $ — $ — $ Collectively evaluated for impairment Total Allowance $ $ $ $ $ $ $ $ $ $ Financing receivable: Ending balance Individually evaluated for impairment $ $ $ — $ — $ $ $ $ — $ — $ Collectively evaluated for impairment Acquired non-credit impaired loans (2) — — — Acquired credit impaired loans (1) — — — — Total Portfolio $ $ $ $ $ $ $ $ $ $ (1) Acquired credit impaired loans are evaluated on an individual basis. (2) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment. COMMERCIAL RESIDENTIAL CONSUMER December 31, 2017 (Dollars in thousands) Real Business Small Construction Real Home Personal Education Auto Total Allowance for loan losses: Beginning balance $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) — ) ) ) ) ) ) Recoveries — Provision (credit) ) ) ) ) ) Allowance ending balance $ $ $ $ $ $ $ $ $ $ Allowance ending balance Individually evaluated for impairment $ — $ $ — $ — $ — $ — $ — $ — $ — $ Collectively evaluated for impairment Total Allowance $ $ $ $ $ $ $ $ $ $ Financing receivable: Ending balance Individually evaluated for impairment $ $ $ — $ — $ $ $ $ — $ — $ Collectively evaluated for impairment Acquired non-credit impaired loans (2) — — — Acquired credit impaired loans (1) — — — — Total Portfolio $ $ $ $ $ $ $ $ $ $ (1) Acquired credit impaired loans are evaluated on an individual basis. (2) Acquired non-credit impaired loans are evaluated collectively, excluding loans that have subsequently moved to non-accrual status which are individually evaluated for impairment.
Schedule of outstanding principal balance and related carrying amount of loans acquired with deteriorated credit quality	June 30, (Dollars in thousands) 2018 Outstanding principal balance $ Carrying amount
Schedule of delinquent and non-accrual loans in the Company's portfolio	Aged Analysis of Past Due and Non-accrual Financing Receivables As of June 30, 2018 Recorded 30-59 60-89 > 90 Investment Days Days Days Total Acquired Total >90 Days Past Past Past Past Credit Financing And Non- (Dollars in thousands) Due Due Due Due Impaired Current Receivables Accruing Accruing (1) Commercial: Commercial real estate $ % $ — — % $ % $ % $ $ % $ % $ — $ % Commercial business loans % % % % % % — % Commercial small business leases % % — % % — % % — — — % Commercial construction — — % — — % — — % — — % — % % — — — % Total commercial $ % $ % $ % $ % $ $ % $ % $ — $ % Residential: Residential real estate $ % $ % $ % $ % $ $ % $ % $ — $ % Total residential $ % $ % $ % $ % $ $ % $ % $ — $ % Consumer loans: Home equity & lines of credit $ % $ % $ % $ % $ $ % $ % $ — $ % Personal % — % — % % — % — % — % Education % % % % — % % — — % Automobile % % — — % % — % % — — — % Total consumer $ % $ % $ % $ % $ $ % $ % $ $ % Total $ % $ % $ % $ % $ $ % $ % $ $ % (1) Non-accruing loans do not include $2.7 million of acquired credit impaired loans, which have been recorded at their fair value at acquisition. Aged Analysis of Past Due and Non-accrual Financing Receivables As of December 31, 2017 Recorded 30-59 60-89 > 90 Investment Days Days Days Total Acquired Total >90 Days Past Past Past Past Credit Financing And Non- (Dollars in thousands) Due Due Due Due Impaired Current Receivables Accruing Accruing Commercial: Commercial real estate $ % $ % $ % $ % $ $ % $ % $ — $ % Commercial business loans % % % % % % — % Commercial small business leases % % — % % — % % — — — % Commercial construction — — % — — % — — % — — % — % % — — — % Total commercial $ % $ % $ % $ % $ $ % $ % $ — $ % Residential: Residential real estate $ % $ % $ % $ % $ $ % $ % $ — $ % Total residential $ % $ % $ % $ % $ $ % $ % $ — $ % Consumer loans: Home equity & lines of credit $ % $ % $ % $ % $ $ % $ % $ — $ % Personal % % % % — % — % — % Education % % % % — % % — — % Automobile % % — — % % — % % — — — % Total consumer $ % $ % $ % $ % $ $ % $ % $ $ % Total $ % $ % $ % $ % $ $ % $ % $ $ % (1) Non-accruing loans do not include $6.6 million of loans acquired with deteriorated credit quality, which have been recorded at their fair value at acquisition.
Summary of loans whose terms were modified in a manner that met the definition of a TDR	June 30, June 30, 2018 2017 (Dollars in thousands) No. of Loans Balance No. of Loans Balance Commercial: Commercial real estate — $ — $ Commercial business loans — — Total commercial Residential: Residential real estate Total real estate loans Consumer loans: Home equity & lines of credit — — Total consumer loans — — Total loans $ $
Summary of troubled debt restructured loans	For the Six Months Ended (Dollars in thousands, except number of loans) No. of Loans Balance Loans modified during the period in a manner that met the definition of a TDR — $ — Modifications granted: Reduction of outstanding principal due — — Deferral of principal amounts due — — Temporary reduction in interest rate — — Deferral of interest due — — Below market interest rate granted — — Outstanding principal balance immediately before modification — — Outstanding principal balance immediately after modification — — Aggregate principal charge-off recognized on TDRs outstanding at period end since origination — — Outstanding principal balance at period end TDRs that re-defaulted subsequent to being modified (in the past twelve months) For the Six Months Ended (Dollars in thousands, except number of loans) No. of Loans Balance Loans modified during the period in a manner that met the definition of a TDR $ Modifications granted: Reduction of outstanding principal due — — Deferral of principal amounts due — — Temporary reduction in interest rate Deferral of interest due — — Below market interest rate granted — — Outstanding principal balance immediately before modification Outstanding principal balance immediately after modification Aggregate principal charge-off recognized on TDRs outstanding at period end since origination — — Outstanding principal balance at period end TDRs that re-defaulted subsequent to being modified (in the past twelve months) — —
Summary of components of impaired loans	Impaired Loans Year to date June 30, 2018 (Dollars in thousands) Recorded Unpaid Related Average Interest Interest Impaired loans with no related specific allowance recorded: Commercial Real Estate $ $ $ — $ $ — $ — Commercial Business — — — Commercial small business leases — — — — — — Commercial Construction — — — — — — Residential Real Estate — — — Home Equity and Lines of Credit — — — Personal — — — Education — — — — — — Auto — — — — — Total Impaired Loans: $ $ $ — $ $ — $ — Impaired loans with a related specific allowance recorded: Commercial Business $ $ $ $ $ — $ — Total impaired loans with a related specific allowance recorded: $ $ $ $ $ — $ — Total Impaired Loans: Commercial $ $ $ $ $ — $ — Residential — — — Consumer — — — Total $ $ $ $ $ — $ — Impaired Loans For the Year Ended December 31, 2017 (Dollars in thousands) Recorded Unpaid Related Average Interest Interest Impaired loans with no related specific allowance recorded: Commercial Real Estate $ $ $ — $ $ $ — Commercial Business — — Commercial small business leases — — — — — — Commercial Construction — — — — — — Residential Real Estate — — — Home Equity and Lines of Credit — — — Personal — — — Education — — — — — — Auto — — — — — Total Impaired Loans: $ $ $ — $ $ $ — Impaired loans with a related specific allowance recorded: Commercial Business $ $ $ $ $ — $ — Total impaired loans with a related specific allowance recorded: $ $ $ $ $ — $ — Total Impaired Loans: Commercial $ $ $ $ $ $ — Residential — — — Consumer — — — Total $ $ $ $ $ $ —
Consumer
LOANS
Schedule of amounts and percentage of the portfolio of classified asset categories	Consumer and Residential Loans Credit Risk Internally Assigned June 30, 2018 (Dollars in thousands) Home Equity & Personal Education Auto Total Performing Originated loans $ % $ % $ % $ % $ % Acquired non-credit impaired loans % % — — % — — % % Acquired credit impaired loans — % — % — — % — — % — % Total Performing % % % % % Nonperforming Originated loans % — % % — — % % Acquired non-credit impaired loans — % % — — % — — % — % Acquired credit impaired loans — — % — — % — — % — — % — — % Total Nonperforming % % % — — % % Total $ % $ % $ % $ % $ % December 31, 2017 (Dollars in thousands) Home Equity & Personal Education Auto Total Performing Originated loans $ % $ % $ % $ % $ % Acquired non-credit impaired loans % % — — % — — % % Acquired credit impaired loans — % — % — — % — — % — % Total Performing % % % % % Nonperforming Originated loans % % % — — % % Acquired non-credit impaired loans — % % — — % — — % — % Acquired credit impaired loans — — % — — % — — % — — % — — % Total Nonperforming % % % — — % % Total $ % $ % $ % $ % $ %
Commercial And Residential Loan
LOANS
Schedule of amounts and percentage of the portfolio of classified asset categories	Commercial and Residential Loans Credit Risk Internally Assigned June 30, 2018 (Dollars in thousands) Commercial Real Commercial Small Business Commercial Residential Real Total Grade Pass Originated loans $ % $ % $ % $ % $ % $ % Acquired non-credit impaired loans % % % — — % % % Total Pass % % % % % % Special Mention Originated loans % % — — % — — % — — % — % Acquired non-credit impaired loans — % — % — — % — — % — — % — % Total Special Mention % % — — % — — % — — % — % Substandard Originated loans — % % — — % — — % — % — % Acquired non-credit impaired loans — % % — — % — — % — % — % Acquired credit impaired loans — % — % — — % — — % — % — % Total Substandard — % % — — % — — % — % — % Doubtful Originated loans — — % % — — % — — % — — % — % Total Doubtful — — % % — — % — — % — — % — % Total $ % $ % $ % $ % $ % $ % Commercial and Residential Loans Credit Risk Internally Assigned December 31, 2017 (Dollars in thousands) Commercial Real Commercial Small Business Commercial Residential Real Total Grade Pass Originated loans $ % $ % $ % $ % $ % $ % Acquired non- credit impaired loans % % % — — % % % Total Pass % % % % % % Special Mention Originated loans — % — % — — % — — % — — % — % Acquired non-credit impaired loans — % % — — % — — % — — % — % Total Special Mention — % % — — % — — % — — % — % Substandard Originated loans % % — — % — — % — % — % Acquired non-credit impaired loans — % % — — % — — % — % — % Acquired credit impaired loans — % — % — — % — — % — % — % Total Substandard % % — — % — — % — % — % Doubtful Originated loans — — % % — — % — — % — — % — % Total Doubtful — — % % — — % — — % — — % — % Total $ % $ % $ % $ % $ % $ %

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	6 Months Ended
	Jun. 30, 2018
GOODWILL AND OTHER INTANGIBLES
Schedule of goodwill and other intangibles	(Dollars in thousands) Goodwill Intangibles Balance at January 1, 2018 $ $ Amortization — ) Balance at June 30, 2018 $ $

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
OTHER ASSETS
Schedule of other assets	June 30, December 31, (Dollars in thousands) 2018 2017 Investments in affordable housing and other investments $ $ Prepaid assets Net deferred tax assets Servicing rights Interest rate swaps Other assets Total other assets $ $

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2018
DEPOSITS
Schedule of major classifications of deposits	June 30, % of Total December 31, % of Total (Dollars in thousands) 2018 Deposits 2017 Deposits Non-interest bearing deposits $ % $ % Interest-earning checking accounts % % Municipal checking accounts % % Money market accounts % % Savings accounts % % Certificates of deposit % % Total deposits $ % $ %

BORROWED FUNDS (Tables)

BORROWED FUNDS (Tables)	6 Months Ended
	Jun. 30, 2018
BORROWED FUNDS
Schedule of borrowed funds	(Dollars in thousands) June 30, December 31, FHLB advances $ $ Statutory trust debenture — Total borrowed funds $ $

OTHER LIABILITIES (Tables)

OTHER LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2018
OTHER LIABILITIES
Schedule of other liabilities	June 30, December 31, (Dollars in thousands) 2018 2017 Accrued pension and other postretirement benefits $ $ Other accrued expenses Mortgage escrow Deferred rent Accrued interest Income taxes payable — Other liabilities Total other liabilities $ $

REGULATORY CAPITAL REQUIREMEN44

REGULATORY CAPITAL REQUIREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
REGULATORY CAPITAL REQUIREMENTS
Summary of bank's actual capital amounts and ratios	To Be Well For Capital Under Prompt Actual Adequacy Purposes Action Provisions (Dollars in thousands) Capital Ratio Capital Ratio Capital Ratio As of June 30, 2018: Tier 1 Leverage (to average assets) $ % $ % $ % Common Equity Tier 1 Capital (to risk weighted assets) % % % Tier 1 Capital (to risk weighted assets) % % % Total Capital (to risk weighted assets) % % % As of December 31, 2017: Tier 1 Leverage (to average assets) $ % $ % $ % Common Equity Tier 1 Capital (to risk weighted assets) % % % Tier 1 Capital (to risk weighted assets) % % % Total Capital (to risk weighted assets) % % %
The Bank
REGULATORY CAPITAL REQUIREMENTS
Summary of bank's actual capital amounts and ratios	To Be Well For Capital Under Prompt Actual Adequacy Purposes Action Provisions (Dollars in thousands) Capital Ratio Capital Ratio Capital Ratio As of June 30, 2018: Tier 1 Leverage (to average assets) $ % $ % $ % Common Equity Tier 1 Capital (to risk weighted assets) % % % Tier 1 Capital (to risk weighted assets) % % % Total Capital (to risk weighted assets) % % % As of December 31, 2017: Tier 1 Leverage (to average assets) $ % $ % $ % Common Equity Tier 1 Capital (to risk weighted assets) % % % Tier 1 Capital (to risk weighted assets) % % % Total Capital (to risk weighted assets) % % %

PENSION AND OTHER POSTRETIREM45

PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)	6 Months Ended
	Jun. 30, 2018
PENSION AND OTHER POSTRETIREMENT BENEFITS
Schedule of components of net pension cost	Pension Benefits Other Postretirement Benefits Three Months Ended Three Months Ended (Dollars in thousands) 2018 2017 2018 2017 Service cost $ — $ — $ $ Interest cost Expected return on assets ) ) — — Amortization of loss Amortization of prior service cost — — ) ) Net periodic pension (benefit) cost $ ) $ ) $ $ Pension Benefits Other Postretirement Benefits Six Months Ended Six Months Ended 2018 2017 2018 2017 Service cost $ — $ — $ $ Interest cost Expected return on assets ) ) — — Amortization of loss Amortization of prior service cost — — ) ) Net periodic pension (benefit) cost $ ) $ ) $ $

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
STOCK BASED COMPENSATION
Summary of non-vested stock award activity	Summary of Non-vested Stock Award Activity Number of Weighted Non-vested Stock Awards outstanding, January 1, 2018 $ Issued Vested ) Forfeited ) Non-vested Stock Awards outstanding, June 30, 2018 Summary of Non-vested Stock Award Activity Number of Weighted Non-vested Stock Awards outstanding, January 1, 2017 $ Issued Vested ) Forfeited ) Non-vested Stock Awards outstanding, June 30, 2017
Summary of stock option activity	Number of Options Weighted Exercise January 1, 2018 $ Granted — — Exercised ) Forfeited — — Expired — — June 30, 2018 Number of Options Weighted Exercise January 1, 2017 $ Granted — — Exercised ) Forfeited ) Expired — — June 30, 2017

FAIR VALUE OF FINANCIAL INSTR47

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value of assets and liabilities measured on a recurring basis	Those assets which will continue to be measured at fair value on a recurring basis are as follows at June 30, 2018: Category Used for Fair Value Measurement (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Mortgage servicing rights $ — $ — $ $ SBA servicing rights — — Investment securities available for sale: U.S. GSE and agency notes — — Ginnie Mae guaranteed mortgage certificates — — GSE collateralized mortgage obligations (“CMOs”) — — GSE mortgage-backed securities — — Municipal bonds General obligation municipal bonds — — Corporate securities — — Equity securities — — Money market funds — — Mutual funds — — Interest rate swap agreements — — Total Assets $ $ $ $ Liabilities: Interest rate swap agreements and other contracts $ — $ $ — $ Total Liabilities $ — $ $ — $ Those assets which will continue to be measured at fair value on a recurring basis are as follows at December 31, 2017: Category Used for Fair Value Measurement (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Mortgage servicing rights $ — $ — $ $ SBA servicing rights — — Investment securities available for sale: U.S. GSE and agency notes — — Ginnie Mae guaranteed mortgage securities — — GSE collateralized mortgage obligations (“CMOs”) — GSE mortgage-backed securities — — Municipal bonds General obligation municipal bonds — — Corporate securities — Equity securities — — Money market funds — — Mutual funds — — Interest rate swap agreements — — Total Assets $ $ $ $ Liabilities: Interest rate swap agreements and other contracts $ — $ $ — $ Total Liabilities $ — $ $ — $
Summary of assets measured at fair value on a recurring basis using significant unobservable inputs	For the Six Months Ended June 30, 2018 June 30, 2017 Level 3 Investments Only Mortgage Mortgage Balance, January 1, $ $ Additions Payments ) ) Increase in fair value due to changes in valuation inputs or assumptions Balance, June 30, $ $ For the Six Months Ended June 30, 2018 June 30, 2017 Level 3 Investments Only SBA Servicing SBA Servicing Balance, January 1, $ $ Additions Payments ) ) Decrease in fair value due to changes in valuation inputs or assumptions ) ) Balance, June 30, $ $
Assets measured at fair value on a nonrecurring basis	Balance (Dollars in thousands) June 30, 2018 Level 1 Level 2 Level 3 Gains/(Losses) Impaired loans $ $ — $ — $ $ ) Other real estate owned — — — Balance (Dollars in thousands) June 30, 2017 Level 1 Level 2 Level 3 Gains/(Losses) Impaired loans $ $ — $ — $ $ ) Other real estate owned — — —
Schedule of carrying and estimated fair value of financial assets and liabilities	Fair Value of Financial Instruments At At Estimated Estimated Fair Value Carrying Fair Carrying Fair (Dollars in thousands) Hierarchy Level Amount Value Amount Value Assets: Cash and cash equivalents Level 1 $ $ $ $ Securities available for sale See previous table Securities held to maturity Level 2 FHLB stock Level 3 Loans and leases, net Level 3 Loans held for sale Level 2 Mortgage servicing rights Level 3 SBA servicing rights Level 3 Interest rate swaps Level 2 Accrued interest receivable Level 3 Liabilities: Checking, Money Market & Savings Level 1 Certificates of Deposit Level 2 Borrowed funds Level 2 Interest rate swaps and other contracts Level 2 Accrued interest payable Level 2

SERVICING RIGHTS (Tables)

SERVICING RIGHTS (Tables)	6 Months Ended
	Jun. 30, 2018
Residential Mortgage Servicing Rights
SERVICING RIGHTS
Schedule of analysis of the activity in the company's servicing rights	Residential Mortgage Servicing Rights For the Six Months Ended June 30, Dollars in thousands 2018 2017 Balance, January 1, $ $ Additions Increases (decreases) in fair value due to: Changes in valuation input or assumptions Paydowns ) ) Balance, June 30, $ $
Schedule of sensitivity of the current fair value of servicing rights favorable and unfavorable changes in key economic assumptions	Residential Residential Mortgage Servicing Rights Mortgage Servicing Rights (Dollars in thousands) June 30, 2018 June 30, 2017 Fair value of residential mortgage servicing rights $ $ Weighted average life (years) 9.2 years 8.0 years Prepayment speed % % Effect on fair value of a 20% increase $ ) $ ) Effect on fair value of a 10% increase ) ) Effect on fair value of a 10% decrease Effect on fair value of a 20% decrease Discount rate % % Effect on fair value of a 20% increase $ ) $ ) Effect on fair value of a 10% increase ) ) Effect on fair value of a 10% decrease Effect on fair value of a 20% decrease Escrow earnings credit % % Effect on fair value of a 20% increase $ $ Effect on fair value of a 10% increase Effect on fair value of a 10% decrease ) ) Effect on fair value of a 20% decrease ) )
SBA servicing rights
SERVICING RIGHTS
Schedule of analysis of the activity in the company's servicing rights	SBA Servicing Rights For the Six Months Ended June 30, Dollars in thousands 2018 2017 Balance, January 1, $ $ Additions Decreases in fair value due to: Changes in valuation input or assumptions ) ) Paydowns ) ) Balance, June 30, $ $
Schedule of sensitivity of the current fair value of servicing rights favorable and unfavorable changes in key economic assumptions	SBA Servicing Rights SBA Servicing Rights (Dollars in thousands) June 30, 2018 June 30, 2017 Fair value of SBA servicing rights $ $ Weighted average life (years) 5.3 years 5.6 years Prepayment speed % % Effect on fair value of a 20% increase $ ) $ ) Effect on fair value of a 10% increase ) ) Effect on fair value of a 10% decrease Effect on fair value of a 20% decrease Discount rate % % Effect on fair value of a 20% increase $ ) $ ) Effect on fair value of a 10% increase ) ) Effect on fair value of a 10% decrease Effect on fair value of a 20% decrease

DERIVATIVE FINANCIAL INSTRUME49

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of fair value of derivative financial instruments as well as their classification on the consolidated statements of financial condition	Asset derivatives Liability derivatives As of June 30, 2018 Notional Notional (Dollars in thousands) amount Fair value (1) amount Fair value (2) Interest rate swap agreements $ $ $ $ Risk participation agreements — — Total derivatives $ $ $ $ (1) Included in other assets in our Consolidated Statements of Financial Condition. (2) Included in other liabilities in our Consolidated Statements of Financial Condition. As of December 31, 2017 Asset derivatives Liability derivatives (dollars in thousands) Notional Fair value (1) Notional Fair value (2) Interest rate swap agreements $ $ $ $ Risk participation agreements — — Total derivatives $ $ $ $ (1) Included in other assets in our Consolidated Statements of Financial Condition. (2) Included in other liabilities in our Consolidated Statements of Financial Condition.
Schedule of offsetting of derivative assets	Offsetting of Derivative Assets Gross Gross Amounts Net Amounts of Gross Amounts Not Offset in the Amounts of Offset in the Assets presented in Statement of Financial Condition As of June 30, 2018 Recognized Statement of the Statement of Financial Collateral Net Amount Interest rate swaps and risk participation agreements $ $ — $ $ — $ $ Offsetting of Derivative Assets Gross Gross Amounts Net Amounts of Gross Amounts Not Offset in the Amounts of Offset in the Assets presented in Statement of Financial Condition As of December 31, 2017 Recognized Statement of the Statement of Financial Collateral Net Amount Interest rate swaps $ $ — $ $ — $ $
Schedule of offsetting of derivative liabilities	Offsetting of Derivative Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset in the Amounts of Offset in the Liabilities presented Statement of Financial Condition As of June 30, 2018 Recognized Statement of in the Statement of Financial Collateral Net Amount Interest rate swaps and risk participation agreements $ $ — $ $ — $ — $ (1) - Balance includes accrued interest receivable/payable and credit valuation adjustments. Offsetting of Derivative Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset in the Amounts of Offset in the Liabilities presented Statement of Financial Condition As of December 31, 2017 Recognized Statement of in the Statement of Financial Collateral Net Amount Interest rate swaps $ $ — $ $ — $ — $ (1) - Balance includes accrued interest receivable/payable and credit valuation adjustments.
Schedule of pre-tax net gains (losses) of the company's cash flow hedges	As of June 30, 2018 Derivatives in Cash Flow Hedging Relationships Amount of Gain Amount of Gain Interest rate swap agreements $ $ — Total derivatives $ $ — As of December 31, 2017 Derivatives in Cash Flow Hedging Relationships Amount of Gain Amount of Gain Interest rate swap agreements $ $ — Total derivatives $ $ —
Cash Flow Hedges
Schedule of fair value of derivative financial instruments as well as their classification on the consolidated statements of financial condition	Asset derivatives As of June 30, 2018 Notional (dollars in thousands) amount Fair value (1) Interest rate swap agreements $ $ Total derivatives $ $ (1) Included in other assets in our Consolidated Statements of Financial Condition. As of December 31, 2017 Asset derivatives (dollars in thousands) Notional amount Fair value (1) Interest rate swap agreements $ $ Total derivatives $ $ (1) Included in other assets in our Consolidated Statements of Financial Condition.

SUMMARY OF SIGNIFICANT ACCOUN50

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Organization (Details)	6 Months Ended
	Jun. 30, 2018segment
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of reportable operating segments	1

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details) $ / shares in Units, $ in Millions	Jan. 12, 2015USD ($)$ / sharesshares	Jun. 30, 2018shares	Dec. 31, 2017shares
NATURE OF OPERATIONS
Existing outstanding common stock shares for conversion		74,917,025	75,829,537
Second-step conversion
NATURE OF OPERATIONS
Gross proceeds from common stock | $	$ 503.8
Issuance of common shares (in shares)	50,383,817
Price per share (in dollars per share) | $ / shares	$ 10
Existing outstanding common stock shares for conversion	29,394,417
Exchange ratio	1.0999
Bank's employee savings and stock ownership plan | Second-step conversion
NATURE OF OPERATIONS
Issuance of common shares (in shares)	2,015,352

NATURE OF OPERATIONS - The Bank

NATURE OF OPERATIONS - The Bank (Details) - The Bank	6 Months Ended
	Jun. 30, 2018Office
NATURE OF OPERATIONS
Percentage of outstanding common stock	100.00%
Number of offices	61

NON-INTEREST INCOME (Details)

NON-INTEREST INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
NON-INTEREST INCOME
Bank owned life insurance	$ 1,135	$ 1,465	$ 1,559	$ 1,894
Limited partnership losses and amortization	(275)	(222)	(676)	(581)
Mortgage banking and SBA income	703	444	1,171	1,323
Net gain (loss) on investment securities	46	(3)	123	(6)
Total non-interest income	7,383	7,420	14,047	14,487
Insurance commission income | ASU 2014-09
NON-INTEREST INCOME
Non-interest income	1,402	1,626	3,325	3,719
Debit card interchange fee income | ASU 2014-09
NON-INTEREST INCOME
Non-interest income	2,165	1,978	4,154	3,813
Returned check charges
NON-INTEREST INCOME
Non-interest income	980	982	1,967	1,894
Other service charges | ASU 2014-09
NON-INTEREST INCOME
Non-interest income	$ 1,227	$ 1,150	$ 2,424	$ 2,431

CHANGES IN AND RECLASSIFICATI54

CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Changes in the balances of each component of accumulated other comprehensive income
BALANCE, beginning	$ 1,034,298
Changes in other comprehensive loss before reclassifications:
Unrealized holding losses on AFS securities	(3,271)	$ 436
Accretion of unrealized losses on AFS securities transferred to HTM	302	255
Unrealized gain on cash flow hedge	4,098
Changes in other comprehensive loss as a result of reclassifications:
Total other comprehensive income	1,916	1,350
BALANCE, ending	1,021,986
Accumulated Other Comprehensive Loss
Changes in the balances of each component of accumulated other comprehensive income
BALANCE, beginning	(26,127)	(25,833)
Changes in other comprehensive loss before reclassifications:
Unrealized holding losses on AFS securities	(3,271)	436
Accretion of unrealized losses on AFS securities transferred to HTM	302	255
Unrealized gain on cash flow hedge	4,098
Amount reclassified from accumulated other comprehensive loss	787	659
Total changes in current-period other comprehensive loss before reclassifications	1,916
Changes in other comprehensive loss as a result of reclassifications:
Total changes in other comprehensive loss as a result of reclassifications	(5,195)
Total other comprehensive income	(3,279)	1,350
BALANCE, ending	(29,406)	(24,483)
Accumulated Other Comprehensive Loss | ASU 2016-01
Changes in other comprehensive loss as a result of reclassifications:
Effect of adoption of ASU 2016-01 equity securities	123
Accumulated Other Comprehensive Loss | ASU 2018-02
Changes in other comprehensive loss as a result of reclassifications:
Reclassification due to the adoption of ASU No. 2018-02	(5,072)
Net unrealized holding gains (losses) on available-for-sale securities
Changes in the balances of each component of accumulated other comprehensive income
BALANCE, beginning	(826)	(747)
Changes in other comprehensive loss before reclassifications:
Unrealized holding losses on AFS securities	(3,271)	436
Accretion of unrealized losses on AFS securities transferred to HTM	302	255
Amount reclassified from accumulated other comprehensive loss	1	4
Total changes in current-period other comprehensive loss before reclassifications	(2,968)
Changes in other comprehensive loss as a result of reclassifications:
Total changes in other comprehensive loss as a result of reclassifications	(199)
Total other comprehensive income	(3,167)	695
BALANCE, ending	(3,993)	(52)
Net unrealized holding gains (losses) on available-for-sale securities | ASU 2018-02
Changes in other comprehensive loss as a result of reclassifications:
Reclassification due to the adoption of ASU No. 2018-02	(199)
Net unrealized gains on equity securities with a readily determinable fair value
Changes in other comprehensive loss as a result of reclassifications:
Total changes in other comprehensive loss as a result of reclassifications	(123)
Total other comprehensive income	(123)
BALANCE, ending	(123)
Net unrealized gains on equity securities with a readily determinable fair value | ASU 2016-01
Changes in other comprehensive loss as a result of reclassifications:
Effect of adoption of ASU 2016-01 equity securities	123
Defined benefit pension plan items
Changes in the balances of each component of accumulated other comprehensive income
BALANCE, beginning	(25,888)	(25,086)
Changes in other comprehensive loss before reclassifications:
Amount reclassified from accumulated other comprehensive loss	786	655
Total changes in current-period other comprehensive loss before reclassifications	786
Changes in other comprehensive loss as a result of reclassifications:
Total changes in other comprehensive loss as a result of reclassifications	(4,999)
Total other comprehensive income	(4,213)	655
BALANCE, ending	(30,101)	$ (24,431)
Defined benefit pension plan items | ASU 2018-02
Changes in other comprehensive loss as a result of reclassifications:
Reclassification due to the adoption of ASU No. 2018-02	(4,999)
Cash Flow Hedge
Changes in the balances of each component of accumulated other comprehensive income
BALANCE, beginning	587
Changes in other comprehensive loss before reclassifications:
Unrealized gain on cash flow hedge	4,098
Total changes in current-period other comprehensive loss before reclassifications	4,098
Changes in other comprehensive loss as a result of reclassifications:
Total changes in other comprehensive loss as a result of reclassifications	126
Total other comprehensive income	4,224
BALANCE, ending	4,811
Cash Flow Hedge | ASU 2018-02
Changes in other comprehensive loss as a result of reclassifications:
Reclassification due to the adoption of ASU No. 2018-02	$ 126

CHANGES IN AND RECLASSIFICATI55

CHANGES IN AND RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassifications out of AOCI by component
Income tax expense (benefit)	$ 3,711	$ 4,728	$ 6,496	$ 8,248
Net of tax	$ (11,938)	$ (9,485)	(21,729)	(17,840)
Net unrealized holding gains (losses) on available-for-sale securities | Amount reclassified from accumulated other comprehensive loss
Reclassifications out of AOCI by component
Net loss sale of investment securities			1	6
Income tax expense (benefit)				(2)
Net of tax			1	4
Defined benefit pension plan items | Amount reclassified from accumulated other comprehensive loss
Reclassifications out of AOCI by component
Reclassification before tax			1,056	1,120
Tax effect of reclassification			(270)	(465)
Reclassification after tax			786	655
Prior service costs | Amount reclassified from accumulated other comprehensive loss
Reclassifications out of AOCI by component
Reclassification before tax			(243)	(243)
Net recognized actuarial losses | Amount reclassified from accumulated other comprehensive loss
Reclassifications out of AOCI by component
Reclassification before tax			$ 1,299	$ 1,363

EARNINGS PER SHARE - Net Earnin

EARNINGS PER SHARE - Net Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic and diluted earnings per share:
Net income		$ 11,938	$ 9,485	$ 21,729	$ 17,840
Net income allocated to unvested restricted stock		(299)	(362)	(581)	(706)
Net income allocated to common shares		$ 11,639	$ 9,123	$ 21,148	$ 17,134
Basic average common shares outstanding		70,621,336	70,630,256	70,761,586	70,337,425
Effect of dilutive securities		612,554	537,803	623,456	655,634
Dilutive average shares outstanding		71,233,890	71,168,059	71,385,042	70,993,059
Net earnings per share
Basic	[1]	$ 0.16	$ 0.13	$ 0.30	$ 0.24
Diluted	[1]	$ 0.16	$ 0.13	$ 0.30	$ 0.24
[1]	*Net earnings per share for both common shares and participating securities.

EARNINGS PER SHARE - Anti-dilut

EARNINGS PER SHARE - Anti-dilutive Shares (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock Options
Anti-dilutive securities disclosures
Antidilutive securities excluded from computation of earnings per share amount	0	0	0	0

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized Cost and Estimated Fair Value of Investments, Gains and Losses on Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost	$ 297,542		$ 309,333
Investment securities available-for-sale, estimated fair value	294,428		310,308
Total investment securities available-for-sale, amortized cost	297,542		309,333
Total investment securities available-for-sale, gross unrealized gains	2,032		3,331
Total investment securities available-for-sale, gross unrealized losses	5,146		2,356
Total investment securities available-for-sale, gross unrealized losses	294,428		310,308
Investment securities held-to-maturity, amortized cost	498,454		537,302
Investment securities held-to-maturity, gross unrealized gains	114		733
Investment securities held-to-maturity, gross unrealized losses	13,292		4,610
Held-to-maturity, estimated fair value	485,276		533,425
Gains and losses on investments
Net gain (loss) on sale of investments	123	$ (6)
ASU 2016-01 | The Bank
Gains and losses on investments
Unrealized holding gains on equity securities	123
Equity securities
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, equity securities, amortized cost	250		250
Investment securities available-for-sale, equity securities, gross unrealized gains	320		160
Investment securities available-for-sale, equity securities, estimated fair value	570		410
U.S. GSE and agency notes
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost	3,124		3,488
Investment securities available-for-sale, gross unrealized losses	77		35
Investment securities available-for-sale, estimated fair value	3,047		3,453
Ginnie Mae guaranteed mortgage securities
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost	2,705		2,980
Investment securities available-for-sale, gross unrealized gains	89		108
Investment securities available-for-sale, estimated fair value	2,794		3,088
GSE mortgage-backed securities
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost	217,286		245,926
Investment securities available-for-sale, gross unrealized gains	1,520		2,378
Investment securities available-for-sale, gross unrealized losses	4,747		2,164
Investment securities available-for-sale, estimated fair value	214,059		246,140
Investment securities held-to-maturity, amortized cost	440,293		472,259
Investment securities held-to-maturity, gross unrealized gains	94		677
Investment securities held-to-maturity, gross unrealized losses	11,790		3,668
Held-to-maturity, estimated fair value	428,597		469,268
GSE & Agency collateralized mortgage obligations (CMOs)
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost	11,461
Investment securities available-for-sale, gross unrealized gains	15
Investment securities available-for-sale, gross unrealized losses	178
Investment securities available-for-sale, estimated fair value	11,298
Investment securities held-to-maturity, amortized cost	55,656
Investment securities held-to-maturity, gross unrealized losses	1,498
Held-to-maturity, estimated fair value	54,158
Collateralized mortgage obligations
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost			14,910
Investment securities available-for-sale, gross unrealized gains			17
Investment securities available-for-sale, gross unrealized losses			153
Investment securities available-for-sale, estimated fair value			14,774
Investment securities held-to-maturity, amortized cost			63,038
Investment securities held-to-maturity, gross unrealized losses			942
Held-to-maturity, estimated fair value			62,096
Municipal bonds
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost	1,803		1,792
Investment securities available-for-sale, gross unrealized gains	52		74
Investment securities available-for-sale, estimated fair value	1,855		1,866
Investment securities held-to-maturity, amortized cost	505		505
Investment securities held-to-maturity, gross unrealized gains	20		32
Held-to-maturity, estimated fair value	525		537
Corporate securities
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost	23,489		23,489
Investment securities available-for-sale, gross unrealized gains	36		594
Investment securities available-for-sale, gross unrealized losses	142
Investment securities available-for-sale, estimated fair value	23,383		24,083
Money markets and mutual funds
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities available-for-sale, amortized cost	37,424		16,498
Investment securities available-for-sale, gross unrealized losses	2		4
Investment securities available-for-sale, estimated fair value	37,422		16,494
Foreign bonds
Amortized cost and estimated fair value of investments in debt and equity securities
Investment securities held-to-maturity, amortized cost	2,000		1,500
Investment securities held-to-maturity, gross unrealized gains			24
Investment securities held-to-maturity, gross unrealized losses	4
Held-to-maturity, estimated fair value	1,996		$ 1,524
Mutual funds | The Bank
Gains and losses on investments
Proceeds from sale of marketable securities	126
Net gain (loss) on sale of investments	$ (1)

INVESTMENT SECURITIES - Tempora

INVESTMENT SECURITIES - Temporarily Impaired Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Temporarily impaired securities
Fair value of securities in a continuous unrealized loss position less than twelve months	$ 525,337	$ 438,434
Unrealized losses less than twelve months	12,510	3,297
Fair value of securities in a continuous unrealized loss position twelve months or longer	171,392	196,012
Unrealized losses twelve months or longer	5,928	3,669
Fair value of securities in a continuous unrealized loss position	696,729	634,446
Total unrealized losses	18,438	6,966
U.S. GSE and agency notes
Temporarily impaired securities
Fair value of securities in a continuous unrealized loss position less than twelve months	3,047	3,453
Unrealized losses less than twelve months	77	35
Fair value of securities in a continuous unrealized loss position	3,047	3,453
Total unrealized losses	77	35
Mortgage-backed securities
Temporarily impaired securities
Fair value of securities in a continuous unrealized loss position less than twelve months	455,831	378,645
Unrealized losses less than twelve months	11,042	2,488
Fair value of securities in a continuous unrealized loss position twelve months or longer	155,057	175,947
Unrealized losses twelve months or longer	5,495	3,344
Fair value of securities in a continuous unrealized loss position	610,888	554,592
Total unrealized losses	16,537	5,832
Corporate securities
Temporarily impaired securities
Fair value of securities in a continuous unrealized loss position less than twelve months	16,358
Unrealized losses less than twelve months	142
Fair value of securities in a continuous unrealized loss position	16,358
Total unrealized losses	142
Collateralized mortgage obligations
Temporarily impaired securities
Fair value of securities in a continuous unrealized loss position less than twelve months	48,321	55,928
Unrealized losses less than twelve months	1,243	770
Fair value of securities in a continuous unrealized loss position twelve months or longer	16,335	20,065
Unrealized losses twelve months or longer	433	325
Fair value of securities in a continuous unrealized loss position	64,656	75,993
Total unrealized losses	1,676	1,095
Foreign bonds
Temporarily impaired securities
Fair value of securities in a continuous unrealized loss position less than twelve months	1,496
Unrealized losses less than twelve months	4
Fair value of securities in a continuous unrealized loss position	1,496
Total unrealized losses	4
Debt securities
Temporarily impaired securities
Fair value of securities in a continuous unrealized loss position less than twelve months	525,053	438,026
Unrealized losses less than twelve months	12,508	3,293
Fair value of securities in a continuous unrealized loss position twelve months or longer	171,392	196,012
Unrealized losses twelve months or longer	5,928	3,669
Fair value of securities in a continuous unrealized loss position	696,445	634,038
Total unrealized losses	18,436	6,962
Mutual funds
Temporarily impaired securities
Fair value of securities in a continuous unrealized loss position less than twelve months	284	408
Unrealized losses less than twelve months	2	4
Fair value of securities in a continuous unrealized loss position	284	408
Total unrealized losses	$ 2	$ 4

INVESTMENT SECURITIES - Unreali

INVESTMENT SECURITIES - Unrealized losses (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Temporarily impaired securities
Unrealized loss	$ 18,438	$ 6,966
GSE mortgage-backed securities
Temporarily impaired securities
Unrealized loss	16,500
GSE & Agency collateralized mortgage obligations (CMOs)
Temporarily impaired securities
Unrealized loss	1,700
U.S. GSE and agency notes
Temporarily impaired securities
Unrealized loss	77	35
Corporate securities
Temporarily impaired securities
Unrealized loss	142
Foreign bonds
Temporarily impaired securities
Unrealized loss	4
Mutual funds
Temporarily impaired securities
Unrealized loss	$ 2	$ 4

INVESTMENT SECURITIES - Mortgag

INVESTMENT SECURITIES - Mortgage-Backed Securities and CMOs (Details)	Jun. 30, 2018security
GSE mortgage-backed securities
Summary of the significant inputs used in estimating potential credit losses for pooled trust preferred securities
Percentage of unrealized loss for securities in unrealized loss position for greater than 12 months	3.40%
Percentage of unrealized loss for security in unrealized loss position for less than 12 months	2.40%
GSE & Agency collateralized mortgage obligations (CMOs)
Summary of the significant inputs used in estimating potential credit losses for pooled trust preferred securities
Percentage of unrealized loss for securities in unrealized loss position for greater than 12 months	2.60%
Percentage of unrealized loss for security in unrealized loss position for less than 12 months	2.50%
U.S. GSE and agency notes
Summary of the significant inputs used in estimating potential credit losses for pooled trust preferred securities
Percentage of unrealized loss for security in unrealized loss position for less than 12 months	2.50%
Corporate securities
Summary of the significant inputs used in estimating potential credit losses for pooled trust preferred securities
Percentage of unrealized loss for security in unrealized loss position for less than 12 months	0.90%
Foreign bonds
Summary of the significant inputs used in estimating potential credit losses for pooled trust preferred securities
Number of investment securities that were in a loss position for less than 12 months	1
Percentage of unrealized loss for security in unrealized loss position for less than 12 months	0.30%

INVESTMENT SECURITIES - Investm

INVESTMENT SECURITIES - Investment Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Available-for-sale, amortized cost
Due after one year through five years, amortized cost	$ 4,927	$ 5,280
Due after five years through ten years, amortized cost	23,489	23,489
Mortgage-backed securities, amortized cost	231,452	263,816
Equity securities, amortized cost	250	250
Money market and mutual funds, amortized cost	37,424	16,498
Investment securities available-for-sale, amortized cost	297,542	309,333
Available-for-sale, fair value
Due after one year through five years, fair value	4,902	5,319
Due after five years through ten years, fair value	23,383	24,083
Mortgage-backed securities, fair value	228,151	264,002
Equity securities, fair value	570	410
Money market and mutual funds, fair value	37,422	16,494
Investment securities available-for-sale, estimated fair value	294,428	310,308
Held-to-maturity, amortized cost
Due in one year or less, amortized cost	125	125
Due after one year through five years, amortized cost	2,380	1,880
Mortgage-backed securities, amortized cost	495,949	535,297
Investment securities held-to-maturity, amortized cost	498,454	537,302
Held-to-maturity, fair value
Due in one year or less, fair value	126	127
Due after one year through five years, fair value	2,395	1,934
Mortgage-backed securities, fair value	482,755	531,364
Investment securities held-to-maturity, estimated fair value	$ 485,276	$ 533,425

INVESTMENT SECURITIES - Securit

INVESTMENT SECURITIES - Securities Pledged as Collateral (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Municipal deposits
Investment disclosures
Securities pledged as collateral	$ 52.5	$ 78.1

LOANS - Summary of Loans by Cla

LOANS - Summary of Loans by Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
LOANS
Total loans	$ 4,023,310	$ 4,034,130
Allowance for losses	(43,068)	(43,267)	$ (43,350)	$ (43,261)
Net loans and leases	3,980,242	3,990,863
Originated
LOANS
Total loans	3,725,102	3,677,232
Allowance for losses	(43,068)	(43,267)
Net loans and leases	3,682,034	3,633,965
Acquired Non-Credit Impaired
LOANS
Total loans	295,529	350,257
Net loans and leases	295,529	350,257
Acquired Credit Impaired
LOANS
Total loans	2,679	6,641
Net loans and leases	2,679	6,641
Commercial
LOANS
Total loans	2,562,468	2,539,898
Commercial | Originated
LOANS
Total loans	2,330,972	2,255,732
Commercial | Acquired Non-Credit Impaired
LOANS
Total loans	229,186	277,894
Commercial | Acquired Credit Impaired
LOANS
Total loans	2,310	6,272
Commercial | Real estate
LOANS
Total loans	1,586,166	1,581,922
Allowance for losses	(26,655)	(28,205)		(23,395)
Commercial | Real estate | Originated
LOANS
Total loans	1,474,045	1,448,226
Commercial | Real estate | Acquired Non-Credit Impaired
LOANS
Total loans	110,650	128,659
Commercial | Real estate | Acquired Credit Impaired
LOANS
Total loans	1,471	5,037
Commercial | Business loans
LOANS
Total loans	705,781	670,089
Allowance for losses	(12,315)	(10,519)		(9,923)
Commercial | Business loans | Originated
LOANS
Total loans	620,692	568,241
Commercial | Business loans | Acquired Non-Credit Impaired
LOANS
Total loans	84,250	100,613
Commercial | Business loans | Acquired Credit Impaired
LOANS
Total loans	839	1,235
Commercial | Small business leases
LOANS
Total loans	138,260	141,254
Allowance for losses	(1,360)	(961)		(536)
Commercial | Small business leases | Originated
LOANS
Total loans	103,974	92,632
Commercial | Small business leases | Acquired Non-Credit Impaired
LOANS
Total loans	34,286	48,622
Commercial | Construction
LOANS
Total loans	132,261	146,633
Allowance for losses	(730)	(963)		(3,579)
Commercial | Construction | Originated
LOANS
Total loans	132,261	146,633
Residential
LOANS
Total loans	970,690	943,573
Residential | Originated
LOANS
Total loans	927,959	897,052
Residential | Acquired Non-Credit Impaired
LOANS
Total loans	42,629	46,414
Residential | Acquired Credit Impaired
LOANS
Total loans	102	107
Residential | Real estate
LOANS
Total loans	970,690	943,573
Allowance for losses	(720)	(838)		(1,493)
Residential | Real estate | Originated
LOANS
Total loans	927,959	897,052
Residential | Real estate | Acquired Non-Credit Impaired
LOANS
Total loans	42,629	46,414
Residential | Real estate | Acquired Credit Impaired
LOANS
Total loans	102	107
Consumer
LOANS
Total loans	490,152	550,659
Consumer | Originated
LOANS
Total loans	466,171	524,448
Consumer | Acquired Non-Credit Impaired
LOANS
Total loans	23,714	25,949
Consumer | Acquired Credit Impaired
LOANS
Total loans	267	262
Consumer | Home equity & lines of credit
LOANS
Total loans	213,403	228,109
Allowance for losses	(291)	(491)		(1,185)
Consumer | Home equity & lines of credit | Originated
LOANS
Total loans	195,468	208,191
Consumer | Home equity & lines of credit | Acquired Non-Credit Impaired
LOANS
Total loans	17,719	19,712
Consumer | Home equity & lines of credit | Acquired Credit Impaired
LOANS
Total loans	216	206
Consumer | Personal
LOANS
Total loans	15,009	17,271
Allowance for losses	(223)	(255)		(372)
Consumer | Personal | Originated
LOANS
Total loans	8,963	10,978
Consumer | Personal | Acquired Non-Credit Impaired
LOANS
Total loans	5,995	6,237
Consumer | Personal | Acquired Credit Impaired
LOANS
Total loans	51	56
Consumer | Education
LOANS
Total loans	137,865	147,582
Allowance for losses	(162)	(121)		(129)
Consumer | Education | Originated
LOANS
Total loans	137,865	147,582
Consumer | Automobile
LOANS
Total loans	123,875	157,697
Allowance for losses	(612)	(914)		$ (2,649)
Consumer | Automobile | Originated
LOANS
Total loans	$ 123,875	$ 157,697

LOANS - General (Details)

LOANS - General (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)loan
Loans activity
Gain on sale of loans			$ 963	$ 1,186
Total loans	$ 4,023,310		4,023,310		$ 4,034,130
Charge-offs			3,630	2,495	5,476
Individually evaluated, specific valuation allowance	1,500		1,500		$ 1,500
Shared national credits
Loans activity
Minimum loan commitment amount shared by banks	20,000		20,000
Total loans	209,200		209,200
Amount of leveraged lending transactions	105,200		105,200
Number of loans downgraded to doubtful and changed to non-accrual status | loan					1
Loans upgraded to substandard			3,100
Loans downgraded to doubtful			7,600
Charge-offs			728
Individually evaluated, specific valuation allowance	1,500		$ 1,500		$ 1,500
Shared national credits | Minimum
Loans activity
Number of banks which shares amount of loan commitments | item			3
Term of variable rate loans			1 year
Shared national credits | Maximum
Loans activity
Total amount of leveraged loans			$ 150,000
Single obligor leveraged loans amount			$ 15,000
Single industry concentrations (as a percent)			30.00%
Term of variable rate loans			7 years
Small business leases | Guaranteed SBA loans
Loans activity
Gain on sale of loans	523		$ 831
Sale value of guaranteed SBA loan	7,300		12,100
Residential
Loans activity
Loans held for sale	287		287		245
Total loans	970,690		970,690		$ 943,573
The Bank | Small business leases
Loans activity
Retained outstanding unguaranteed portion of loans	4,000		$ 4,000
The Bank | Small business leases | Service charges and other income | Guaranteed SBA loans
Loans activity
Servicing fee (as a percent)			1.00%
The Bank | Residential
Loans activity
Servicing fee (as a percent)			0.25%
Residential mortgage loans sold	2,800	$ 4,800	$ 4,700	10,800
Mortgage banking income	$ 180	$ 160	$ 340	$ 385

LOANS - Allowance for Loan Loss

LOANS - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Jun. 30, 2018	Dec. 31, 2017
Allowance for Loan Losses
Collateral or discounted cash flow deficiency for loans, period when charged off			90 days
Specific valuation allowance						$ 41,568	$ 41,767
Allowance for loan losses:
Balance, beginning of year			$ 43,267	$ 43,261	$ 43,261
Provision (credit) for loan losses	$ 1,666	$ 750	2,665	1,350	3,118
Charge-offs			(3,630)	(2,495)	(5,476)
Recoveries			766	1,234	2,364
Balance, end of period	43,068	43,350	43,068	43,350	43,267
Allowance for loan losses:
Individually evaluated for impairment						1,500	1,500
Collectively evaluated for impairment						41,568	41,767
Total Allowance	43,068	$ 43,350	43,267	43,261	43,261	43,068	43,267
Financing receivables:
Individually evaluated for impairment						36,578	39,964
Collectively evaluated for impairment						3,688,524	3,637,268
Acquired non-credit impaired loans						295,529	350,257
Acquired credit impaired loans						2,679	6,641
Total Portfolio						4,023,310	4,034,130
Commercial
Financing receivables:
Total Portfolio						2,562,468	2,539,898
Commercial | Real estate
Allowance for Loan Losses
Specific valuation allowance						26,655	28,205
Allowance for loan losses:
Balance, beginning of year			28,205	23,395	23,395
Provision (credit) for loan losses			(1,376)		5,256
Charge-offs			(189)		(470)
Recoveries			15		24
Balance, end of period	26,655		26,655		28,205
Allowance for loan losses:
Collectively evaluated for impairment						26,655	28,205
Total Allowance	26,655		28,205	23,395	23,395	26,655	28,205
Financing receivables:
Individually evaluated for impairment						17,696	19,336
Collectively evaluated for impairment						1,456,349	1,428,890
Acquired non-credit impaired loans						110,650	128,659
Acquired credit impaired loans						1,471	5,037
Total Portfolio						1,586,166	1,581,922
Commercial | Business loans
Allowance for Loan Losses
Specific valuation allowance						10,815	9,019
Allowance for loan losses:
Balance, beginning of year			10,519	9,923	9,923
Provision (credit) for loan losses			2,458		1,083
Charge-offs			(753)		(525)
Recoveries			91		38
Balance, end of period	12,315		12,315		10,519
Allowance for loan losses:
Individually evaluated for impairment						1,500	1,500
Collectively evaluated for impairment						10,815	9,019
Total Allowance	12,315		10,519	9,923	9,923	12,315	10,519
Financing receivables:
Individually evaluated for impairment						11,373	13,091
Collectively evaluated for impairment						609,319	555,150
Acquired non-credit impaired loans						84,250	100,613
Acquired credit impaired loans						839	1,235
Total Portfolio						705,781	670,089
Commercial | Small business leases
Allowance for Loan Losses
Specific valuation allowance						1,360	961
Allowance for loan losses:
Balance, beginning of year			961	536	536
Provision (credit) for loan losses			1,157		1,757
Charge-offs			(933)		(1,776)
Recoveries			175		444
Balance, end of period	1,360		1,360		961
Allowance for loan losses:
Collectively evaluated for impairment						1,360	961
Total Allowance	1,360		961	536	536	1,360	961
Financing receivables:
Collectively evaluated for impairment						103,974	92,632
Acquired non-credit impaired loans						34,286	48,622
Total Portfolio						138,260	141,254
Commercial | Construction
Allowance for Loan Losses
Specific valuation allowance						730	963
Allowance for loan losses:
Balance, beginning of year			963	3,579	3,579
Provision (credit) for loan losses			(237)		(2,617)
Recoveries			4		1
Balance, end of period	730		730		963
Allowance for loan losses:
Collectively evaluated for impairment						730	963
Total Allowance	730		963	3,579	3,579	730	963
Financing receivables:
Collectively evaluated for impairment						132,261	146,633
Total Portfolio						132,261	146,633
Residential
Financing receivables:
Total Portfolio						970,690	943,573
Residential | Real estate
Allowance for Loan Losses
Specific valuation allowance						720	838
Allowance for loan losses:
Balance, beginning of year			838	1,493	1,493
Provision (credit) for loan losses			76		(437)
Charge-offs			(196)		(246)
Recoveries			2		28
Balance, end of period	720		720		838
Allowance for loan losses:
Collectively evaluated for impairment						720	838
Total Allowance	720		$ 838	1,493	1,493	720	838
Financing receivables:
Individually evaluated for impairment						5,890	6,062
Collectively evaluated for impairment						922,069	890,990
Acquired non-credit impaired loans						42,629	46,414
Acquired credit impaired loans						102	107
Total Portfolio						970,690	943,573
Consumer
Allowance for Loan Losses
Collateral or discounted cash flow deficiency for loans, period when charged off			90 days
Financing receivables:
Total Portfolio						490,152	550,659
Consumer | Home equity & lines of credit
Allowance for Loan Losses
Specific valuation allowance						291	491
Allowance for loan losses:
Balance, beginning of year			$ 491	1,185	1,185
Provision (credit) for loan losses			121		(649)
Charge-offs			(391)		(356)
Recoveries			70		311
Balance, end of period	291		291		491
Allowance for loan losses:
Collectively evaluated for impairment						291	491
Total Allowance	291		491	1,185	1,185	291	491
Financing receivables:
Individually evaluated for impairment						1,558	1,375
Collectively evaluated for impairment						193,910	206,816
Acquired non-credit impaired loans						17,719	19,712
Acquired credit impaired loans						216	206
Total Portfolio						213,403	228,109
Consumer | Personal
Allowance for Loan Losses
Specific valuation allowance						223	255
Allowance for loan losses:
Balance, beginning of year			255	372	372
Provision (credit) for loan losses			124		(280)
Charge-offs			(244)		(167)
Recoveries			88		330
Balance, end of period	223		223		255
Allowance for loan losses:
Collectively evaluated for impairment						223	255
Total Allowance	223		255	372	372	223	255
Financing receivables:
Individually evaluated for impairment						61	100
Collectively evaluated for impairment						8,902	10,878
Acquired non-credit impaired loans						5,995	6,237
Acquired credit impaired loans						51	56
Total Portfolio						15,009	17,271
Consumer | Education
Allowance for Loan Losses
Specific valuation allowance						162	121
Allowance for loan losses:
Balance, beginning of year			121	129	129
Provision (credit) for loan losses			122		112
Charge-offs			(81)		(120)
Balance, end of period	162		162		121
Allowance for loan losses:
Collectively evaluated for impairment						162	121
Total Allowance	162		121	129	129	162	121
Financing receivables:
Collectively evaluated for impairment						137,865	147,582
Total Portfolio						137,865	147,582
Consumer | Automobile
Allowance for Loan Losses
Specific valuation allowance						612	914
Allowance for loan losses:
Balance, beginning of year			914	2,649	2,649
Provision (credit) for loan losses			220		(1,107)
Charge-offs			(843)		(1,816)
Recoveries			321		1,188
Balance, end of period	612		612		914
Allowance for loan losses:
Collectively evaluated for impairment						612	914
Total Allowance	$ 612		$ 914	$ 2,649	$ 2,649	612	914
Financing receivables:
Collectively evaluated for impairment						123,875	157,697
Total Portfolio						$ 123,875	$ 157,697

LOANS - Portfolio Amounts and P

LOANS - Portfolio Amounts and Percentages by Classification (Details) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)loan
Amounts and percentage of portfolio
Amount of portfolio	$ 4,023,310		$ 4,034,130
Loans upgraded to substandard (as a percent)	41.00%
Individually evaluated, specific valuation allowance	$ 1,500		1,500
Charge-offs	$ 3,630	$ 2,495	5,476
Collateral deficiency for loans, period when charged off	90 days
Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 3,533,158		$ 3,483,471
Percentage of portfolio	100.00%		100.00%
Shared national credits
Amounts and percentage of portfolio
Amount of portfolio	$ 209,200
Number of loans downgraded to doubtful and changed to non-accrual status | loan			1
Loans downgraded to doubtful	7,600
Loans upgraded to substandard	3,100
Individually evaluated, specific valuation allowance	1,500		$ 1,500
Charge-offs	728
Commercial
Amounts and percentage of portfolio
Amount of portfolio	2,562,468		2,539,898
Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 1,586,166		$ 1,581,922
Percentage of portfolio	100.00%		100.00%
Charge-offs	$ 189		$ 470
Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 705,781		$ 670,089
Percentage of portfolio	100.00%		100.00%
Individually evaluated, specific valuation allowance	$ 1,500		$ 1,500
Charge-offs	753		525
Commercial | Small business leases
Amounts and percentage of portfolio
Amount of portfolio	$ 138,260		$ 141,254
Percentage of portfolio	100.00%		100.00%
Charge-offs	$ 933		$ 1,776
Commercial | Construction
Amounts and percentage of portfolio
Amount of portfolio	$ 132,261		$ 146,633
Percentage of portfolio	100.00%		100.00%
Residential
Amounts and percentage of portfolio
Amount of portfolio	$ 970,690		$ 943,573
Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 970,690		$ 943,573
Percentage of portfolio	100.00%		100.00%
Charge-offs	$ 196		$ 246
Consumer
Amounts and percentage of portfolio
Amount of portfolio	$ 490,152		$ 550,659
Percentage of portfolio	100.00%		100.00%
Collateral deficiency for loans, period when charged off	90 days
Pass | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 3,486,957		$ 3,435,827
Percentage of portfolio	100.00%		100.00%
Pass | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 1,565,659		$ 1,561,089
Percentage of portfolio	99.00%		99.00%
Pass | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 681,977		$ 645,184
Percentage of portfolio	96.00%		96.00%
Pass | Commercial | Small business leases
Amounts and percentage of portfolio
Amount of portfolio	$ 138,260		$ 141,254
Percentage of portfolio	100.00%		100.00%
Pass | Commercial | Construction
Amounts and percentage of portfolio
Amount of portfolio	$ 132,261		$ 146,633
Percentage of portfolio	100.00%		100.00%
Pass | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 968,800		$ 941,667
Percentage of portfolio	100.00%		100.00%
Special Mention | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 15,954		$ 12,510
Special Mention | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 9,670		6,262
Percentage of portfolio	1.00%
Special Mention | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 6,284		$ 6,248
Percentage of portfolio	1.00%		1.00%
Substandard | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 25,737		$ 27,181
Substandard | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	10,837		$ 14,571
Percentage of portfolio			1.00%
Substandard | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 13,010		$ 10,704
Percentage of portfolio	2.00%		2.00%
Substandard | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 1,890		$ 1,906
Doubtful | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	4,510		7,953
Doubtful | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 4,510		$ 7,953
Percentage of portfolio	1.00%		1.00%
Originated
Amounts and percentage of portfolio
Amount of portfolio	$ 3,725,102		$ 3,677,232
Originated | Commercial
Amounts and percentage of portfolio
Amount of portfolio	2,330,972		2,255,732
Originated | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	1,474,045		1,448,226
Originated | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	620,692		568,241
Originated | Commercial | Small business leases
Amounts and percentage of portfolio
Amount of portfolio	103,974		92,632
Originated | Commercial | Construction
Amounts and percentage of portfolio
Amount of portfolio	132,261		146,633
Originated | Residential
Amounts and percentage of portfolio
Amount of portfolio	927,959		897,052
Originated | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	927,959		897,052
Originated | Consumer
Amounts and percentage of portfolio
Amount of portfolio	466,171		524,448
Originated | Pass | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 3,226,396		$ 3,126,067
Percentage of portfolio	93.00%		91.00%
Originated | Pass | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 1,458,863		$ 1,436,514
Percentage of portfolio	92.00%		91.00%
Originated | Pass | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 605,017		$ 554,813
Percentage of portfolio	85.00%		83.00%
Originated | Pass | Commercial | Small business leases
Amounts and percentage of portfolio
Amount of portfolio	$ 103,974		$ 92,632
Percentage of portfolio	75.00%		66.00%
Originated | Pass | Commercial | Construction
Amounts and percentage of portfolio
Amount of portfolio	$ 132,261		$ 146,633
Percentage of portfolio	100.00%		100.00%
Originated | Pass | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 926,281		$ 895,475
Percentage of portfolio	96.00%		95.00%
Originated | Special Mention | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 14,766		$ 7,689
Originated | Special Mention | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 9,427		5,779
Percentage of portfolio	1.00%
Originated | Special Mention | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 5,339		1,910
Percentage of portfolio	1.00%
Originated | Substandard | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 13,259		11,075
Originated | Substandard | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	5,755		$ 5,933
Percentage of portfolio			1.00%
Originated | Substandard | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 5,826		$ 3,565
Percentage of portfolio	1.00%		1.00%
Originated | Substandard | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 1,678		$ 1,577
Originated | Doubtful | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	4,510		7,953
Originated | Doubtful | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 4,510		$ 7,953
Percentage of portfolio	1.00%		1.00%
Acquired Non-Credit Impaired
Amounts and percentage of portfolio
Amount of portfolio	$ 295,529		$ 350,257
Acquired Non-Credit Impaired | Commercial
Amounts and percentage of portfolio
Amount of portfolio	229,186		277,894
Acquired Non-Credit Impaired | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	110,650		128,659
Acquired Non-Credit Impaired | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	84,250		100,613
Acquired Non-Credit Impaired | Commercial | Small business leases
Amounts and percentage of portfolio
Amount of portfolio	34,286		48,622
Acquired Non-Credit Impaired | Residential
Amounts and percentage of portfolio
Amount of portfolio	42,629		46,414
Acquired Non-Credit Impaired | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	42,629		46,414
Acquired Non-Credit Impaired | Consumer
Amounts and percentage of portfolio
Amount of portfolio	23,714		25,949
Acquired Non-Credit Impaired | Pass | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 260,561		$ 309,760
Percentage of portfolio	7.00%		9.00%
Acquired Non-Credit Impaired | Pass | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 106,796		$ 124,575
Percentage of portfolio	7.00%		8.00%
Acquired Non-Credit Impaired | Pass | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 76,960		$ 90,371
Percentage of portfolio	11.00%		13.00%
Acquired Non-Credit Impaired | Pass | Commercial | Small business leases
Amounts and percentage of portfolio
Amount of portfolio	$ 34,286		$ 48,622
Percentage of portfolio	25.00%		34.00%
Acquired Non-Credit Impaired | Pass | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 42,519		$ 46,192
Percentage of portfolio	4.00%		5.00%
Acquired Non-Credit Impaired | Special Mention | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	$ 1,188		$ 4,821
Acquired Non-Credit Impaired | Special Mention | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	243		483
Acquired Non-Credit Impaired | Special Mention | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	945		$ 4,338
Percentage of portfolio			1.00%
Acquired Non-Credit Impaired | Substandard | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	10,066		$ 9,727
Acquired Non-Credit Impaired | Substandard | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	3,611		3,601
Acquired Non-Credit Impaired | Substandard | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	$ 6,345		$ 5,904
Percentage of portfolio	1.00%		1.00%
Acquired Non-Credit Impaired | Substandard | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 110		$ 222
Acquired Credit Impaired
Amounts and percentage of portfolio
Amount of portfolio	2,679		6,641
Acquired Credit Impaired | Commercial
Amounts and percentage of portfolio
Amount of portfolio	2,310		6,272
Acquired Credit Impaired | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	1,471		5,037
Acquired Credit Impaired | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	839		1,235
Acquired Credit Impaired | Residential
Amounts and percentage of portfolio
Amount of portfolio	102		107
Acquired Credit Impaired | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	102		107
Acquired Credit Impaired | Consumer
Amounts and percentage of portfolio
Amount of portfolio	267		262
Acquired Credit Impaired | Substandard | Commercial And Residential Loans
Amounts and percentage of portfolio
Amount of portfolio	2,412		6,379
Acquired Credit Impaired | Substandard | Commercial | Real estate
Amounts and percentage of portfolio
Amount of portfolio	1,471		5,037
Acquired Credit Impaired | Substandard | Commercial | Business loans
Amounts and percentage of portfolio
Amount of portfolio	839		1,235
Acquired Credit Impaired | Substandard | Residential | Real estate
Amounts and percentage of portfolio
Amount of portfolio	$ 102		$ 107

LOANS - Consumer Loan Risk Prof

LOANS - Consumer Loan Risk Profile (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Amounts and percentage of portfolio
Amount of portfolio	$ 4,023,310	$ 4,034,130
Consumer
Amounts and percentage of portfolio
Collateral deficiency for loans, period when charged off	90 days
Amount of portfolio	$ 490,152	$ 550,659
Percentage of portfolio	100.00%	100.00%
Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	$ 213,403	$ 228,109
Percentage of portfolio	100.00%	100.00%
Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	$ 15,009	$ 17,271
Percentage of portfolio	100.00%	100.00%
Consumer | Education
Amounts and percentage of portfolio
Collateral deficiency for loans, period when charged off	90 days
Amount of portfolio	$ 137,865	$ 147,582
Percentage of portfolio	100.00%	100.00%
Consumer | Automobile
Amounts and percentage of portfolio
Amount of portfolio	$ 123,875	$ 157,697
Percentage of portfolio	100.00%	100.00%
Performing | Consumer
Amounts and percentage of portfolio
Amount of portfolio	$ 466,258	$ 534,916
Percentage of portfolio	95.00%	97.00%
Performing | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	$ 211,976	$ 226,863
Percentage of portfolio	99.00%	99.00%
Performing | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	$ 14,746	$ 16,926
Percentage of portfolio	99.00%	98.00%
Performing | Consumer | Education
Amounts and percentage of portfolio
Amount of portfolio	$ 115,661	$ 133,430
Percentage of portfolio	84.00%	90.00%
Performing | Consumer | Automobile
Amounts and percentage of portfolio
Amount of portfolio	$ 123,875	$ 157,697
Percentage of portfolio	100.00%	100.00%
Nonperforming | Consumer
Amounts and percentage of portfolio
Amount of portfolio	$ 23,894	$ 15,743
Percentage of portfolio	5.00%	3.00%
Nonperforming | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	$ 1,427	$ 1,246
Percentage of portfolio	1.00%	1.00%
Nonperforming | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	$ 263	$ 345
Percentage of portfolio	1.00%	2.00%
Nonperforming | Consumer | Education
Amounts and percentage of portfolio
Amount of portfolio	$ 22,204	$ 14,152
Percentage of portfolio	16.00%	10.00%
Originated
Amounts and percentage of portfolio
Amount of portfolio	$ 3,725,102	$ 3,677,232
Originated | Consumer
Amounts and percentage of portfolio
Amount of portfolio	466,171	524,448
Originated | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	195,468	208,191
Originated | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	8,963	10,978
Originated | Consumer | Education
Amounts and percentage of portfolio
Amount of portfolio	137,865	147,582
Originated | Consumer | Automobile
Amounts and percentage of portfolio
Amount of portfolio	123,875	157,697
Originated | Performing | Consumer
Amounts and percentage of portfolio
Amount of portfolio	$ 442,563	$ 509,046
Percentage of portfolio	90.00%	92.00%
Originated | Performing | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	$ 194,122	$ 207,036
Percentage of portfolio	91.00%	90.00%
Originated | Performing | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	$ 8,905	$ 10,883
Percentage of portfolio	60.00%	63.00%
Originated | Performing | Consumer | Education
Amounts and percentage of portfolio
Amount of portfolio	$ 115,661	$ 133,430
Percentage of portfolio	84.00%	90.00%
Originated | Performing | Consumer | Automobile
Amounts and percentage of portfolio
Amount of portfolio	$ 123,875	$ 157,697
Percentage of portfolio	100.00%	100.00%
Originated | Nonperforming | Consumer
Amounts and percentage of portfolio
Amount of portfolio	$ 23,608	$ 15,402
Percentage of portfolio	5.00%	3.00%
Originated | Nonperforming | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	$ 1,346	$ 1,155
Percentage of portfolio	1.00%	1.00%
Originated | Nonperforming | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	$ 58	$ 95
Percentage of portfolio		1.00%
Originated | Nonperforming | Consumer | Education
Amounts and percentage of portfolio
Amount of portfolio	$ 22,204	$ 14,152
Percentage of portfolio	16.00%	10.00%
Acquired Non-Credit Impaired
Amounts and percentage of portfolio
Amount of portfolio	$ 295,529	$ 350,257
Acquired Non-Credit Impaired | Consumer
Amounts and percentage of portfolio
Amount of portfolio	23,714	25,949
Acquired Non-Credit Impaired | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	17,719	19,712
Acquired Non-Credit Impaired | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	5,995	6,237
Acquired Non-Credit Impaired | Performing | Consumer
Amounts and percentage of portfolio
Amount of portfolio	$ 23,428	$ 25,608
Percentage of portfolio	5.00%	5.00%
Acquired Non-Credit Impaired | Performing | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	$ 17,638	$ 19,621
Percentage of portfolio	8.00%	9.00%
Acquired Non-Credit Impaired | Performing | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	$ 5,790	$ 5,987
Percentage of portfolio	39.00%	35.00%
Acquired Non-Credit Impaired | Nonperforming | Consumer
Amounts and percentage of portfolio
Amount of portfolio	$ 286	$ 341
Acquired Non-Credit Impaired | Nonperforming | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	81	91
Acquired Non-Credit Impaired | Nonperforming | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	$ 205	$ 250
Percentage of portfolio	1.00%	1.00%
Acquired Credit Impaired
Amounts and percentage of portfolio
Amount of portfolio	$ 2,679	$ 6,641
Acquired Credit Impaired | Consumer
Amounts and percentage of portfolio
Amount of portfolio	267	262
Acquired Credit Impaired | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	216	206
Acquired Credit Impaired | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	51	56
Acquired Credit Impaired | Performing | Consumer
Amounts and percentage of portfolio
Amount of portfolio	267	262
Acquired Credit Impaired | Performing | Consumer | Home equity & lines of credit
Amounts and percentage of portfolio
Amount of portfolio	216	206
Acquired Credit Impaired | Performing | Consumer | Personal
Amounts and percentage of portfolio
Amount of portfolio	$ 51	$ 56

LOANS - Loans Acquired with Det

LOANS - Loans Acquired with Deteriorated Credit Quality (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loans acquired disclosures
Outstanding principal balance	$ 3,981
Carrying amount	$ 2,679	$ 6,641

LOANS - Loan Delinquencies and

LOANS - Loan Delinquencies and Non-accrual Loans (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Summary of Aged Analysis of Past Due and Non-accrual Loans
Threshold period past due upon which loans are put into non-accrual status	90 days
Loans past due	$ 47,083	$ 48,752
Past due, percentage	100.00%	100.00%
Acquired credit impaired loans	$ 2,679	$ 6,641
Current loans	$ 3,973,548	$ 3,978,737
Current loans, percentage	100.00%	100.00%
Total Portfolio	$ 4,023,310	$ 4,034,130
Loans, percentage	100.00%	100.00%
Recorded Investment Greater Than 90 Days And Accruing	$ 22,204	$ 14,152
Non-Accruing	$ 20,886	$ 20,521
Non-Accruing, percentage	100.00%	100.00%
Acquired credit impaired loans	$ 2,679	$ 6,641
30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 12,300	$ 18,801
Past due, percentage	100.00%	100.00%
60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 5,310	$ 10,352
Past due, percentage	100.00%	100.00%
Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 29,473	$ 19,599
Past due, percentage	100.00%	100.00%
Commercial
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 8,058	$ 9,423
Past due, percentage	17.00%	19.00%
Acquired credit impaired loans	$ 2,310	$ 6,272
Current loans	$ 2,552,100	$ 2,524,203
Current loans, percentage	65.00%	63.00%
Total Portfolio	$ 2,562,468	$ 2,539,898
Loans, percentage	65.00%	63.00%
Non-Accruing	$ 13,383	$ 13,101
Non-Accruing, percentage	64.00%	64.00%
Commercial | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 2,788	$ 3,457
Past due, percentage	23.00%	19.00%
Commercial | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 1,347	$ 3,568
Past due, percentage	25.00%	35.00%
Commercial | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 3,923	$ 2,398
Past due, percentage	13.00%	13.00%
Commercial | Real estate
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 4,150	$ 3,922
Past due, percentage	9.00%	8.00%
Acquired credit impaired loans	$ 1,471	$ 5,037
Current loans	$ 1,580,545	$ 1,572,963
Current loans, percentage	41.00%	39.00%
Total Portfolio	$ 1,586,166	$ 1,581,922
Loans, percentage	41.00%	38.00%
Non-Accruing	$ 3,021	$ 3,273
Non-Accruing, percentage	14.00%	16.00%
Acquired credit impaired loans	$ 1,471	$ 5,037
Commercial | Real estate | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 1,478	$ 719
Past due, percentage	12.00%	4.00%
Commercial | Real estate | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due		$ 1,304
Past due, percentage		13.00%
Commercial | Real estate | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 2,672	$ 1,899
Past due, percentage	9.00%	10.00%
Commercial | Business loans
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 2,302	$ 3,466
Past due, percentage	5.00%	7.00%
Acquired credit impaired loans	$ 839	$ 1,235
Current loans	$ 702,640	$ 665,388
Current loans, percentage	18.00%	17.00%
Total Portfolio	$ 705,781	$ 670,089
Loans, percentage	18.00%	17.00%
Non-Accruing	$ 10,362	$ 9,828
Non-Accruing, percentage	50.00%	48.00%
Acquired credit impaired loans	$ 839	$ 1,235
Commercial | Business loans | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 217	$ 1,291
Past due, percentage	2.00%	7.00%
Commercial | Business loans | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 843	$ 1,680
Past due, percentage	16.00%	16.00%
Commercial | Business loans | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 1,242	$ 495
Past due, percentage	4.00%	3.00%
Commercial | Small business leases
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 1,606	$ 2,035
Past due, percentage	3.00%	4.00%
Current loans	$ 136,654	$ 139,219
Current loans, percentage	3.00%	3.00%
Total Portfolio	$ 138,260	$ 141,254
Loans, percentage	3.00%	4.00%
Commercial | Small business leases | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 1,093	$ 1,447
Past due, percentage	9.00%	8.00%
Commercial | Small business leases | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 504	$ 584
Past due, percentage	9.00%	6.00%
Commercial | Small business leases | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 9	$ 4
Commercial | Construction
Summary of Aged Analysis of Past Due and Non-accrual Loans
Current loans	$ 132,261	$ 146,633
Current loans, percentage	3.00%	4.00%
Total Portfolio	$ 132,261	$ 146,633
Loans, percentage	3.00%	4.00%
Residential
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 3,436	$ 5,478
Past due, percentage	7.00%	11.00%
Acquired credit impaired loans	$ 102	$ 107
Current loans	$ 967,152	$ 937,988
Current loans, percentage	24.00%	24.00%
Total Portfolio	$ 970,690	$ 943,573
Loans, percentage	24.00%	23.00%
Non-Accruing	$ 5,813	$ 5,829
Non-Accruing, percentage	28.00%	28.00%
Residential | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 611	$ 2,132
Past due, percentage	5.00%	11.00%
Residential | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 284	$ 1,113
Past due, percentage	5.00%	11.00%
Residential | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 2,541	$ 2,233
Past due, percentage	9.00%	11.00%
Residential | Real estate
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 3,436	$ 5,478
Past due, percentage	7.00%	11.00%
Acquired credit impaired loans	$ 102	$ 107
Current loans	$ 967,152	$ 937,988
Current loans, percentage	24.00%	24.00%
Total Portfolio	$ 970,690	$ 943,573
Loans, percentage	24.00%	23.00%
Non-Accruing	$ 5,813	$ 5,829
Non-Accruing, percentage	28.00%	28.00%
Acquired credit impaired loans	$ 102	$ 107
Residential | Real estate | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 611	$ 2,132
Past due, percentage	5.00%	11.00%
Residential | Real estate | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 284	$ 1,113
Past due, percentage	5.00%	11.00%
Residential | Real estate | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 2,541	$ 2,233
Past due, percentage	9.00%	11.00%
Consumer
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 35,589	$ 33,851
Past due, percentage	76.00%	70.00%
Acquired credit impaired loans	$ 267	$ 262
Current loans	$ 454,296	$ 516,546
Current loans, percentage	11.00%	13.00%
Total Portfolio	$ 490,152	$ 550,659
Loans, percentage	11.00%	14.00%
Recorded Investment Greater Than 90 Days And Accruing	$ 22,204	$ 14,152
Non-Accruing	$ 1,690	$ 1,591
Non-Accruing, percentage	8.00%	8.00%
Consumer | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 8,901	$ 13,212
Past due, percentage	72.00%	70.00%
Consumer | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 3,679	$ 5,671
Past due, percentage	70.00%	54.00%
Consumer | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 23,009	$ 14,968
Past due, percentage	78.00%	76.00%
Consumer | Home equity & lines of credit
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 1,116	$ 1,723
Past due, percentage	2.00%	4.00%
Acquired credit impaired loans	$ 216	$ 206
Current loans	$ 212,071	$ 226,180
Current loans, percentage	5.00%	6.00%
Total Portfolio	$ 213,403	$ 228,109
Loans, percentage	5.00%	6.00%
Non-Accruing	$ 1,427	$ 1,246
Non-Accruing, percentage	7.00%	6.00%
Acquired credit impaired loans	$ 216	$ 206
Consumer | Home equity & lines of credit | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 354	$ 856
Past due, percentage	3.00%	5.00%
Consumer | Home equity & lines of credit | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 102	$ 285
Past due, percentage	2.00%	3.00%
Consumer | Home equity & lines of credit | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 660	$ 582
Past due, percentage	2.00%	3.00%
Consumer | Personal
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 264	$ 550
Past due, percentage	1.00%	1.00%
Acquired credit impaired loans	$ 51	$ 56
Current loans	14,694	16,665
Total Portfolio	15,009	17,271
Non-Accruing	$ 263	$ 345
Non-Accruing, percentage	1.00%	2.00%
Acquired credit impaired loans	$ 51	$ 56
Consumer | Personal | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 114	$ 198
Past due, percentage	1.00%	1.00%
Consumer | Personal | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 5	$ 118
Past due, percentage		1.00%
Consumer | Personal | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	145	$ 234
Past due, percentage		1.00%
Consumer | Education
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 31,854	$ 27,301
Past due, percentage	68.00%	56.00%
Current loans	$ 106,011	$ 120,281
Current loans, percentage	3.00%	3.00%
Total Portfolio	$ 137,865	$ 147,582
Loans, percentage	3.00%	4.00%
Recorded Investment Greater Than 90 Days And Accruing	$ 22,204	$ 14,152
Consumer | Education | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 6,299	$ 8,328
Past due, percentage	51.00%	44.00%
Consumer | Education | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 3,351	$ 4,821
Past due, percentage	64.00%	46.00%
Consumer | Education | Greater than 90 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 22,204	$ 14,152
Past due, percentage	76.00%	72.00%
Consumer | Automobile
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 2,355	$ 4,277
Past due, percentage	5.00%	9.00%
Current loans	$ 121,520	$ 153,420
Current loans, percentage	3.00%	4.00%
Total Portfolio	$ 123,875	$ 157,697
Loans, percentage	3.00%	4.00%
Consumer | Automobile | 30-59 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 2,134	$ 3,830
Past due, percentage	17.00%	20.00%
Consumer | Automobile | 60-89 Days Past Due
Summary of Aged Analysis of Past Due and Non-accrual Loans
Loans past due	$ 221	$ 447
Past due, percentage	4.00%	4.00%

LOANS - Troubled Debt Restructu

LOANS - Troubled Debt Restructured Loans by Classification (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)item
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Number of TDR loans at period end | item	9	6
Outstanding principal balance of TDR loans at period end | $	$ 8,033	$ 584
Minimum
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Period of sustained performance based on the restructured terms	6 months
Commercial
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Number of TDR loans at period end | item	3	1
Outstanding principal balance of TDR loans at period end | $	$ 7,663	$ 269
Commercial | Real estate
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Number of TDR loans at period end | item		1
Outstanding principal balance of TDR loans at period end | $		$ 269
Commercial | Business loans (includes leases)
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Number of TDR loans at period end | item	3
Outstanding principal balance of TDR loans at period end | $	$ 7,663
Residential
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Number of TDR loans at period end | item	5	5
Outstanding principal balance of TDR loans at period end | $	$ 315	$ 315
Residential | Real estate
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Number of TDR loans at period end | item	5	5
Outstanding principal balance of TDR loans at period end | $	$ 315	$ 315
Consumer
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Number of TDR loans at period end | item	1
Outstanding principal balance of TDR loans at period end | $	$ 55
Consumer | Home equity & lines of credit
Summary of loans whose terms were modified in a manner that met the definition of a TDR
Number of TDR loans at period end | item	1
Outstanding principal balance of TDR loans at period end | $	$ 55

LOANS - Summary of Troubled Deb

LOANS - Summary of Troubled Debt Restructured Loans (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)item	Jun. 30, 2017USD ($)item
Summary of troubled debt restructured loans
Number of loans modified | item		1
Loans modified during the period in a manner that met the definition of a TDR | $		$ 31
No. of Loans immediately before modification | item		1
Outstanding principal balance immediately before modification | $		$ 43
No. of Loans immediately after modification | item		1
Outstanding principal balance immediately after modification | $		$ 31
Number of TDR loans at period end | item	9	6
Outstanding principal balance of TDR loans at period end | $	$ 8,033	$ 584
Number of loans that re-defaulted subsequent to being modified (in the past twelve months) | item	1
TDRs that re-defaulted subsequent to being modified (in the past twelve months) | $	$ 24
Temporary reduction in interest rate
Summary of troubled debt restructured loans
Number of loans modified | item		1
Outstanding principal balance of loans modified | $		$ 31

LOANS - Impaired Loans (Details

LOANS - Impaired Loans (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Components of Impaired Loans
Recorded investment, with no related specific allowance	$ 13,242	$ 14,047
Unpaid principal balance, with no related specific allowance	14,304	14,987
Related allowance, with a related specific allowance	1,500	1,500
Average recorded investment, with no related specific allowance	14,335	12,883
Interest income recognized, with no related specific allowance		70
Recorded investment, with a related specific allowance	7,644	7,953
Unpaid principal balance, with a related specific allowance	7,644	7,953
Average recorded investment, with a related specific allowance	7,844	8,954
Recorded investment	20,886	22,000
Unpaid principal balance	21,948	22,940
Value of impaired loans that were accruing TDRs that were modified and are performing in accordance with modified terms	1,500	1,500
Average recorded investment	22,179	21,837
Interest income recognized		70
Acquired credit impaired loans	2,679	6,641
Commercial
Components of Impaired Loans
Recorded investment	13,383	14,580
Unpaid principal balance	13,730	14,773
Value of impaired loans that were accruing TDRs that were modified and are performing in accordance with modified terms	1,500	1,500
Average recorded investment	14,262	13,648
Interest income recognized		70
Commercial | Real estate
Components of Impaired Loans
Recorded investment, with no related specific allowance	3,021	4,515
Unpaid principal balance, with no related specific allowance	3,208	4,548
Average recorded investment, with no related specific allowance	3,468	2,515
Interest income recognized, with no related specific allowance		56
Acquired credit impaired loans	1,471	5,037
Commercial | Business loans
Components of Impaired Loans
Recorded investment, with no related specific allowance	2,718	2,112
Unpaid principal balance, with no related specific allowance	2,878	2,272
Related allowance, with a related specific allowance	1,500
Average recorded investment, with no related specific allowance	2,950	2,179
Interest income recognized, with no related specific allowance		14
Recorded investment, with a related specific allowance	7,644	7,953
Unpaid principal balance, with a related specific allowance	7,644	7,953
Average recorded investment, with a related specific allowance	7,844	8,954
Acquired credit impaired loans	839	1,235
Residential
Components of Impaired Loans
Recorded investment	5,813	5,829
Unpaid principal balance	6,528	6,546
Average recorded investment	6,217	6,834
Residential | Real estate
Components of Impaired Loans
Recorded investment, with no related specific allowance	5,813	5,829
Unpaid principal balance, with no related specific allowance	6,528	6,546
Average recorded investment, with no related specific allowance	6,217	6,834
Acquired credit impaired loans	102	107
Consumer
Components of Impaired Loans
Recorded investment	1,690	1,591
Unpaid principal balance	1,690	1,621
Average recorded investment	1,700	1,355
Consumer | Home equity & lines of credit
Components of Impaired Loans
Recorded investment, with no related specific allowance	1,427	1,246
Unpaid principal balance, with no related specific allowance	1,427	1,276
Average recorded investment, with no related specific allowance	1,395	1,109
Acquired credit impaired loans	216	206
Consumer | Personal
Components of Impaired Loans
Recorded investment, with no related specific allowance	263	345
Unpaid principal balance, with no related specific allowance	263	345
Average recorded investment, with no related specific allowance	304	240
Acquired credit impaired loans	51	56
Consumer | Automobile
Components of Impaired Loans
Average recorded investment, with no related specific allowance	$ 1	$ 6

LOANS - Impaired Loans Other In

LOANS - Impaired Loans Other Information (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Other information
Charge-offs	$ 3,630	$ 2,495	$ 5,476
Individually evaluated for impairment	1,500		1,500
Interest income recognizable as per original terms	43,100		34,700
Nonperforming loans, both nonaccrual and accrual	22,200		14,200
Value of impaired loans that were accruing TDRs that were modified and are performing in accordance with modified terms	1,500		1,500
Shared national credits
Other information
Loans downgraded to doubtful	7,600
Charge-offs	728
Individually evaluated for impairment	1,500		1,500
Education | Consumer
Other information
Charge-offs	$ 81		$ 120

GOODWILL AND OTHER INTANGIBLE75

GOODWILL AND OTHER INTANGIBLES - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Goodwill disclosures
Other intangibles	$ 2,486	$ 2,884
Impairment	0
Impairment	0
Core deposit intangible
Goodwill disclosures
Other intangibles	$ 1,500
Estimated useful life	10 years
Customer list
Goodwill disclosures
Other intangibles	$ 959
Minimum | Customer list
Goodwill disclosures
Estimated useful life	4 years
Maximum | Customer list
Goodwill disclosures
Estimated useful life	6 years
Beneficial Insurance Services, LLC
Goodwill disclosures
Impairment		$ 0

GOODWILL AND OTHER INTANGIBLE76

GOODWILL AND OTHER INTANGIBLES - Intangible Assets and Amortization Expense (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Summary of goodwill
Balance at the beginning of the period	$ 169,002
Amortization	0
Balance at the end of the period	169,002
Summary of intangible assets
Balance at the beginning of the period	2,884
Amortization	(398)
Balance at the end of the period	$ 2,486

OTHER ASSETS - Summary of Other

OTHER ASSETS - Summary of Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
OTHER ASSETS
Investments in affordable housing and other investments	$ 6,377	$ 4,053
Prepaid assets	3,892	2,691
Net deferred tax assets	22,367	22,975
Servicing rights	2,629	2,341
Interest rate swaps	9,199	2,713
Other assets	3,642	4,614
Total other assets	$ 48,106	$ 39,387

DEPOSITS - Deposits by Major Cl

DEPOSITS - Deposits by Major Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
DEPOSITS
Non-interest bearing deposits	$ 592,375	$ 563,185
Interest-earning checking accounts	963,001	898,263
Municipal checking accounts	95,341	123,697
Money market accounts	405,186	419,773
Savings accounts	1,298,087	1,288,875
Certificates of deposit	806,516	856,700
Total deposits	$ 4,160,506	$ 4,150,493
Non-interest bearing deposits, percentage	14.20%	13.60%
Interest-earning checking accounts, percentage	23.20%	21.60%
Municipal checking accounts, percentage	2.30%	3.00%
Money market accounts, percentage	9.70%	10.10%
Savings accounts, percentage	31.20%	31.10%
Certificates of deposit, percentage	19.40%	20.60%
Total deposits, percentage	100.00%	100.00%

BORROWED FUNDS - Summary of Bor

BORROWED FUNDS - Summary of Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Summary of borrowed funds
FHLB advances		$ 515,000	$ 515,000
Statutory trust debenture			25,439
Total borrowed funds		$ 515,000	$ 540,439
Statutory trust debenture
Summary of borrowed funds
Payment of statutory trust debenture	$ 25,400
Interest rate (as a percent)	3.17%

BORROWED FUNDS - Loans Pledged

BORROWED FUNDS - Loans Pledged as Collateral (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
FHLB advances
Borrowed funds
Amount of remaining borrowings available with the FHLB	$ 1,500
FHLB advances | FHLB Pittsburgh
Borrowed funds
Loans pledged to secure borrowing capacity	2,800	$ 2,700
Maximum borrowing capacity of FHLB advances	2,100	2,100
Federal Reserve Bank borrowings | Federal Reserve Bank Of Philadelphia
Borrowed funds
Loans pledged to secure borrowing capacity	157.8	193.6
Maximum borrowing capacity from Federal Reserve Bank	$ 121.2	$ 146.2

OTHER LIABILITIES - Summary of

OTHER LIABILITIES - Summary of Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
OTHER LIABILITIES
Accrued pension and other postretirement benefits	$ 25,939	$ 27,888
Other accrued expenses	12,565	14,351
Mortgage escrow	12,765	10,952
Deferred rent	7,475	7,425
Accrued interest	2,779	3,039
Income taxes payable	247
Other liabilities	10,443	9,351
Total other liabilities	$ 72,213	$ 73,006

REGULATORY CAPITAL REQUIREMEN82

REGULATORY CAPITAL REQUIREMENTS - Summary of Requirements (Details)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Summary of regulatory capital requirements and ratios
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	21.69%	22.12%
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	21.69%	22.76%
Total Capital (to risk weighted assets), ratio (as a percent)	22.77%	23.84%
Tier 1 Leverage ratio (as a percent)	15.65%	16.19%
Federal Deposit Corporation And Federal Reserve Board
Summary of regulatory capital requirements and ratios
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	4.00%
Federal Deposit Corporation And Federal Reserve Board | Rules Effective January 1, 2015
Summary of regulatory capital requirements and ratios
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	4.50%
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	6.00%
Total Capital (to risk weighted assets), ratio (as a percent)	8.00%
Tier 1 Leverage ratio (as a percent)	4.00%
Federal Deposit Corporation And Federal Reserve Board | Rules Phased in beginning January 2016
Summary of regulatory capital requirements and ratios
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	7.00%
Tier 1 Capital (to risk weighted assets), ratio (as a percent)	8.50%
Total Capital (to risk weighted assets), ratio (as a percent)	10.50%
Additional Common Equity Tier 1 (to risk weighted assets), ratio (as a percent)	2.50%
New Capital Conservation Buffer Requirement Beginning Ratio	0.625%

REGULATORY CAPITAL REQUIREMEN83

REGULATORY CAPITAL REQUIREMENTS - Summary of Compliance (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Tier 1 Leverage
Tier 1 Leverage, actual, capital amount	$ 871,830	$ 914,552
Tier 1 Leverage (to average assets), actual, ratio (as a percent)	15.65%	16.19%
Tier 1 Leverage, for capital adequacy purposes, capital amount	$ 222,807	$ 225,909
Tier 1 Leverage (to average assets), for capital adequacy purposes, ratio (as a percent)	4.00%	4.00%
Tier 1 Leverage, to be well capitalized under prompt corrective action provisions, capital amount	$ 278,508	$ 282,387
Tier 1 Leverage (to average assets), to be well capitalized under prompt corrective action provisions, ratio (as a percent)	5.00%	5.00%
Common Equity Tier 1 Capital
Common Equity Tier 1 Capital, actual, capital amount	$ 871,830	$ 889,113
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	21.69%	22.12%
Common Equity Tier 1 Capital, for capital adequacy purposes, capital amount	$ 180,850	$ 180,841
Common Equity Tier 1 Capital (to risk weighted assets, for capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
Common Equity Tier 1 Capital, to be well capitalized under prompt corrective action provisions, capital amount	$ 261,228	$ 261,215
Common Equity Tier 1 Capital (to risk weighted assets), to be well capitalized under prompt corrective action, ratio (as a percent)	6.50%	6.50%
Tier 1 Capital
Tier 1 Capital, actual, capital amount	$ 871,830	$ 914,552
Tier 1 Capital (to risk weighted assets), actual, ratio (as a percent)	21.69%	22.76%
Tier 1 Capital, for capital adequacy purposes, capital amount	$ 241,133	$ 241,121
Tier 1 Capital (to risk weighted assets), for capital adequacy purposes, ratio (as a percent)	6.00%	6.00%
Tier 1 Capital, to be well capitalized under prompt corrective action provisions, capital amount	$ 321,511	$ 321,495
Tier 1 Capital (to risk weighted assets), to be well capitalized under prompt corrective action provisions, ratio (as a percent)	8.00%	8.00%
Total Capital
Total Capital, actual, capital amount	$ 915,023	$ 958,013
Total Capital (to risk weighted assets), actual, ratio (as a percent)	22.77%	23.84%
Total Capital, for capital adequacy purposes, capital amount	$ 321,511	$ 321,495
Total Capital (to risk weighted assets), for capital adequacy purposes, ratio (as a percent)	8.00%	8.00%
Total Capital, to be well capitalized under prompt corrective action provisions, capital amount	$ 401,889	$ 401,869
Total Capital (to risk weighted assets), to be well capitalized under prompt corrective action provisions, ratio (as a percent)	10.00%	10.00%
The Bank
Tier 1 Leverage
Tier 1 Leverage, actual, capital amount	$ 735,082	$ 816,461
Tier 1 Leverage (to average assets), actual, ratio (as a percent)	13.20%	14.46%
Tier 1 Leverage, for capital adequacy purposes, capital amount	$ 222,773	$ 225,870
Tier 1 Leverage (to average assets), for capital adequacy purposes, ratio (as a percent)	4.00%	4.00%
Tier 1 Leverage, to be well capitalized under prompt corrective action provisions, capital amount	$ 278,466	$ 282,337
Tier 1 Leverage (to average assets), to be well capitalized under prompt corrective action provisions, ratio (as a percent)	5.00%	5.00%
Common Equity Tier 1 Capital
Common Equity Tier 1 Capital, actual, capital amount	$ 735,082	$ 816,461
Common Equity Tier 1 Capital (to risk weighted assets), ratio (as a percent)	18.31%	20.34%
Common Equity Tier 1 Capital, for capital adequacy purposes, capital amount	$ 180,701	$ 180,662
Common Equity Tier 1 Capital (to risk weighted assets, for capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
Common Equity Tier 1 Capital, to be well capitalized under prompt corrective action provisions, capital amount	$ 261,013	$ 260,956
Common Equity Tier 1 Capital (to risk weighted assets), to be well capitalized under prompt corrective action, ratio (as a percent)	6.50%	6.50%
Tier 1 Capital
Tier 1 Capital, actual, capital amount	$ 735,082	$ 816,461
Tier 1 Capital (to risk weighted assets), actual, ratio (as a percent)	18.31%	20.34%
Tier 1 Capital, for capital adequacy purposes, capital amount	$ 240,935	$ 240,882
Tier 1 Capital (to risk weighted assets), for capital adequacy purposes, ratio (as a percent)	6.00%	6.00%
Tier 1 Capital, to be well capitalized under prompt corrective action provisions, capital amount	$ 321,247	$ 321,177
Tier 1 Capital (to risk weighted assets), to be well capitalized under prompt corrective action provisions, ratio (as a percent)	8.00%	8.00%
Total Capital
Total Capital, actual, capital amount	$ 778,275	$ 859,852
Total Capital (to risk weighted assets), actual, ratio (as a percent)	19.38%	21.42%
Total Capital, for capital adequacy purposes, capital amount	$ 321,247	$ 321,177
Total Capital (to risk weighted assets), for capital adequacy purposes, ratio (as a percent)	8.00%	8.00%
Total Capital, to be well capitalized under prompt corrective action provisions, capital amount	$ 401,559	$ 401,471
Total Capital (to risk weighted assets), to be well capitalized under prompt corrective action provisions, ratio (as a percent)	10.00%	10.00%

INCOME TAXES - Provision for In

INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
INCOME TAXES
Income tax expense		$ 3,711	$ 4,728	$ 6,496	$ 8,248
Effective income tax rate (as a percent)		23.90%	33.30%	23.10%	31.60%
Tax at statutory rate (as a percent)	35.00%			21.00%

INCOME TAXES - Net deferred tax

INCOME TAXES - Net deferred taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
INCOME TAXES
Net deferred tax assets	$ 22,367	$ 22,975

PENSION AND OTHER POSTRETIREM86

PENSION AND OTHER POSTRETIREMENT BENEFITS - Assumptions and Components (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Apr. 14, 2016employee
Pension Benefits
Components of net pension cost
Interest cost	$ 822	$ 845	$ 1,645	$ 1,690
Expected return on assets	(1,695)	(1,565)	(3,390)	(3,129)
Amortization of loss	558	618	1,115	1,236
Net periodic pension (benefit) cost	(315)	(102)	(630)	(203)
Pension Benefits | Conestoga Bank | Maximum
Pension and other postretirement benefits
Number of employees covered under benefit pension plan | employee					20
Other Postretirement Benefits
Components of net pension cost
Service cost	36	35	72	72
Interest cost	181	183	362	366
Amortization of loss	92	64	184	127
Amortization of prior service cost	(122)	(121)	(243)	(243)
Net periodic pension (benefit) cost	$ 187	$ 161	$ 375	$ 322

STOCK BASED COMPENSATION - Equi

STOCK BASED COMPENSATION - Equity Incentive Plan and Non-Vested Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Summary of Non-vested Stock Award Activity
Non-vested Stock Awards outstanding, Beginning balance (in shares)			2,131,972	2,960,572
Non-vested Stock Awards outstanding Weighted Average Grant Price, Beginning (in dollars per share)			$ 13.51	$ 13.07
Number of Shares, issued			164,642	154,753
Weighted Average Grant Price, issued (in dollars per share)			$ 16.60	$ 18
Number of Shares, vested			(977,919)	(870,133)
Weighted Average Grant Price, vested (in dollars per share)			$ 13.40	$ 13.11
Number of Shares, forfeited			(7,354)	(65,976)
Weighted Average Grant Price, forfeited (in dollars per share)			$ 15.07	$ 10.22
Non-vested Stock Awards outstanding, Ending balance (in shares)	1,311,341	2,179,216	1,311,341	2,179,216
Non-vested Stock Awards outstanding Weighted Average Grant Price, Ending (in dollars per share)	$ 13.97	$ 13.50	$ 13.97	$ 13.50
Fair value of shares vested			$ 16.1	$ 13.9
Stock awards
STOCK BASED COMPENSATION
Compensation expense	$ 3.3	$ 3.4	$ 6.6	$ 6.7
2016 Omnibus Incentive Plan | Restricted Stock
STOCK BASED COMPENSATION
Number of shares granted from treasury stock	2,598,658		2,598,658
2016 Omnibus Incentive Plan | Restricted Stock | Directors | Minimum
STOCK BASED COMPENSATION
Award vesting period			12 months
2016 Omnibus Incentive Plan | Restricted Stock | Directors | Maximum
STOCK BASED COMPENSATION
Award vesting period			31 months
2016 Omnibus Incentive Plan | Restricted Stock | Employees and officers
STOCK BASED COMPENSATION
Award vesting period			3 years

STOCK BASED COMPENSATION - Stoc

STOCK BASED COMPENSATION - Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share - based compensation disclosures
Award expiration period			10 years
Award vesting period			5 years
Compensation expense	$ 143	$ 236	$ 298	$ 526
Summary of stock option activity
Number of Options, Beginning balance (in shares)			1,727,249	2,884,087
Weighted Exercise Price per Shares, Beginning balance (in dollars per share)			$ 9.62	$ 9.59
Number of Options, exercised (in shares)			(220,470)	(943,640)
Weighted Exercise Price per Shares, exercised (in dollars per share)			$ 10.46	$ 9.42
Number of Options, forfeited (in shares)				(11,878)
Weighted Exercise Price per Shares, forfeited (in dollars per share)				$ 9.42
Number of Options, Ending balance (in shares)	1,506,779	1,928,569	1,506,779	1,928,569
Weighted Exercise Price per Shares, Ending balance (in dollars per share)	$ 9.50	$ 9.68	$ 9.50	$ 9.68
Options, additional disclosures
Weighted average remaining contractual term of options outstanding			4 years 5 months 23 days	5 years 4 days
Aggregate intrinsic value of options outstanding	$ 10,100	$ 10,300	$ 10,100	$ 10,300
Exercisable options (in shares)	1,331,919	1,480,881	1,331,919	1,480,881
Average weighted exercise price of exercisable options (in dollars per share)	$ 9.31	$ 9.49	$ 9.31	$ 9.49
Weighted average remaining contractual term of exercisable options			4 years 3 months 11 days	4 years 5 months 16 days
Aggregate intrinsic value of exercisable options	$ 9,200	$ 8,200	$ 9,200	$ 8,200

STOCK BASED COMPENSATION - Unre

STOCK BASED COMPENSATION - Unrecognized Compensation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Stock Options
Share - based compensation disclosures
Unrecognized compensation cost related to options	$ 485	$ 1,300
Period for recognizing unrecognized compensation	1 year 11 days	1 year 8 months 23 days
Stock awards
Share - based compensation disclosures
Unrecognized compensation cost related non-vested stock awards granted under EIP	$ 14,200	$ 25,400
Period for recognizing unrecognized compensation	1 year 4 months 13 days	2 years 18 days

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Purchase and Loan Origination Commitments (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
COMMITMENTS AND CONTINGENCIES
Outstanding commitments to purchase or originate new loans or leases	$ 78,900	$ 29,400
Commitments to customers on available lines of credit	450,800	443,100
Commitments to fund commercial construction and other advances	206,000	159,300
Commitments to customer on standby letters of credit	25,700	29,400
Reserve for unfunded commitments	$ 125	$ 124

RECENT ACCOUNTING PRONOUNCEME91

RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
ASU 2018-02
RECENT ACCOUNTING PRONOUNCEMENTS
Tax benefits stranded in AOCI to be reclassified to retained earnings as a result of the Tax Cuts and Jobs Act of 2017		$ 5,000
Amount reclassified from AOCI to retained earnings as a result of the Tax Cuts and Jobs Act of 2017	$ 5,000
ASU 2016-01
RECENT ACCOUNTING PRONOUNCEMENTS
Cumulative-effect adjustment to retained earnings	$ (123)

FAIR VALUE OF FINANCIAL INSTR92

FAIR VALUE OF FINANCIAL INSTRUMENTS - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Assets:
Servicing rights	$ 2,629	$ 2,341
Investment securities available-for-sale	294,428	310,308
Interest rate swap agreements
Assets:
Derivative asset		1,828
SBA servicing rights
Assets:
Servicing rights	982	785	$ 807	$ 646
U.S. GSE and agency notes
Assets:
Investment securities available-for-sale	3,047	3,453
Ginnie Mae guaranteed mortgage securities
Assets:
Investment securities available-for-sale	2,794	3,088
GSE & Agency collateralized mortgage obligations (CMOs)
Assets:
Investment securities available-for-sale	11,298
GSE mortgage-backed securities
Assets:
Investment securities available-for-sale	214,059	246,140
Corporate securities
Assets:
Investment securities available-for-sale	23,383	24,083
Recurring
Assets:
Total Assets	306,256	315,362
Liabilities:
Total Liabilities	2,913	1,778
Recurring | Interest rate swap agreements
Assets:
Derivative asset	9,199	2,713
Recurring | Interest rate swap agreements and other contracts
Liabilities:
Derivative liability	2,913	1,778
Recurring | Mortgage servicing rights
Assets:
Servicing rights	1,647	1,556
Recurring | SBA servicing rights
Assets:
Servicing rights	982	785
Recurring | U.S. GSE and agency notes
Assets:
Investment securities available-for-sale	3,047	3,453
Recurring | Ginnie Mae guaranteed mortgage securities
Assets:
Investment securities available-for-sale	2,794	3,088
Recurring | GSE & Agency collateralized mortgage obligations (CMOs)
Assets:
Investment securities available-for-sale	11,298	14,774
Recurring | GSE mortgage-backed securities
Assets:
Investment securities available-for-sale	214,059	246,140
Recurring | General obligation municipal bonds
Assets:
Investment securities available-for-sale	1,855	1,866
Recurring | Corporate securities
Assets:
Investment securities available-for-sale	23,383	24,083
Recurring | Equity securities
Assets:
Investment securities available-for-sale	570	410
Recurring | Money market funds
Assets:
Investment securities available-for-sale	37,138	16,086
Recurring | Mutual funds
Assets:
Investment securities available-for-sale	284	408
Recurring | Level 1
Assets:
Total Assets	37,992	16,904
Recurring | Level 1 | Equity securities
Assets:
Investment securities available-for-sale	570	410
Recurring | Level 1 | Money market funds
Assets:
Investment securities available-for-sale	37,138	16,086
Recurring | Level 1 | Mutual funds
Assets:
Investment securities available-for-sale	284	408
Recurring | Level 2
Assets:
Total Assets	265,635	296,117
Liabilities:
Total Liabilities	2,913	1,778
Recurring | Level 2 | Interest rate swap agreements
Assets:
Derivative asset	9,199	2,713
Recurring | Level 2 | Interest rate swap agreements and other contracts
Liabilities:
Derivative liability	2,913	1,778
Recurring | Level 2 | U.S. GSE and agency notes
Assets:
Investment securities available-for-sale	3,047	3,453
Recurring | Level 2 | Ginnie Mae guaranteed mortgage securities
Assets:
Investment securities available-for-sale	2,794	3,088
Recurring | Level 2 | GSE & Agency collateralized mortgage obligations (CMOs)
Assets:
Investment securities available-for-sale	11,298	14,774
Recurring | Level 2 | GSE mortgage-backed securities
Assets:
Investment securities available-for-sale	214,059	246,140
Recurring | Level 2 | General obligation municipal bonds
Assets:
Investment securities available-for-sale	1,855	1,866
Recurring | Level 2 | Corporate securities
Assets:
Investment securities available-for-sale	23,383	24,083
Recurring | Level 3
Assets:
Total Assets	2,629	2,341
Recurring | Level 3 | Mortgage servicing rights
Assets:
Servicing rights	1,647	1,556
Recurring | Level 3 | SBA servicing rights
Assets:
Servicing rights	$ 982	$ 785

FAIR VALUE OF FINANCIAL INSTR93

FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Fair Value on a Recurring Basis Using Unobservable Units (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Mortgage servicing rights
Summary of fair value on a recurring basis using unobservable units
Balance at the beginning of the period	$ 1,556	$ 1,523
Additions	73	83
Payments	(81)	(114)
Increase (decrease) in fair value due to changes in valuation inputs or assumptions	99	48
Balance at the end of the period	1,647	1,540
SBA servicing rights
Summary of fair value on a recurring basis using unobservable units
Balance at the beginning of the period	785	646
Additions	382	238
Payments	(147)	(69)
Increase (decrease) in fair value due to changes in valuation inputs or assumptions	(38)	(8)
Balance at the end of the period	$ 982	$ 807

FAIR VALUE OF FINANCIAL INSTR94

FAIR VALUE OF FINANCIAL INSTRUMENTS - Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Assets and Liabilities Measured on Nonrecurring Basis
Impaired loans	$ 20,886		$ 22,000
Nonrecurring
Assets and Liabilities Measured on Nonrecurring Basis
Impaired loans	3,649	$ 12,346
Other real estate owned	19	166
Gains/(Losses) - Impaired loans	(154)	(3)
Nonrecurring | Level 3
Assets and Liabilities Measured on Nonrecurring Basis
Impaired loans	3,649	12,346
Other real estate owned	$ 19	$ 166

FAIR VALUE OF FINANCIAL INSTR95

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value of Financial Instruments (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Assets:
Investment securities available-for-sale	$ 294,428	$ 310,308
Securities held to maturity	485,276	533,425
Servicing rights	2,629	2,341
Accrued interest receivable	18,152	17,512
Liabilities:
Accrued interest payable	$ 2,779	3,039
Fair value of Financial instruments - other disclosures
Redemption price of FHLB (in dollars per share)	$ 100
SBA servicing rights
Assets:
Servicing rights	$ 982	785	$ 807	$ 646
Carrying Amount
Assets:
Investment securities available-for-sale	294,428	310,308
Carrying Amount | Level 1
Assets:
Cash and cash equivalents	586,793	557,615
Carrying Amount | Level 1 | Checking, Money Market & Savings
Liabilities:
Deposits	3,353,990	3,293,793
Carrying Amount | Level 2
Assets:
Securities held to maturity	498,454	537,302
Loans held for sale	287	245
Interest rate swaps	9,199	2,713
Liabilities:
Borrowed funds	515,000	540,439
Accrued interest payable	2,779	3,039
Carrying Amount | Level 2 | Interest rate swap agreements and other contracts
Liabilities:
Derivative liability	2,913	1,778
Carrying Amount | Level 2 | Certificates of Deposit
Liabilities:
Deposits	806,516	856,700
Carrying Amount | Level 3
Assets:
FHLB stock	23,182	23,210
Loans and leases, net	3,979,955	3,990,618
Accrued interest receivable	18,152	17,512
Carrying Amount | Level 3 | Mortgage servicing rights
Assets:
Servicing rights	1,647	1,556
Carrying Amount | Level 3 | SBA servicing rights
Assets:
Servicing rights	982	785
Estimated Fair Value
Assets:
Investment securities available-for-sale	294,428	310,308
Estimated Fair Value | Level 1
Assets:
Cash and cash equivalents	586,793	557,615
Estimated Fair Value | Level 1 | Checking, Money Market & Savings
Liabilities:
Deposits	3,353,990	3,293,793
Estimated Fair Value | Level 2
Assets:
Securities held to maturity	485,276	533,425
Loans held for sale	295	249
Interest rate swaps	9,199	2,713
Liabilities:
Borrowed funds	503,583	536,011
Accrued interest payable	2,779	3,039
Estimated Fair Value | Level 2 | Interest rate swap agreements and other contracts
Liabilities:
Derivative liability	2,913	1,778
Estimated Fair Value | Level 2 | Certificates of Deposit
Liabilities:
Deposits	794,111	849,556
Estimated Fair Value | Level 3
Assets:
FHLB stock	23,182	23,210
Loans and leases, net	3,923,396	3,992,226
Accrued interest receivable	18,152	17,512
Estimated Fair Value | Level 3 | Mortgage servicing rights
Assets:
Servicing rights	1,647	1,556
Estimated Fair Value | Level 3 | SBA servicing rights
Assets:
Servicing rights	$ 982	$ 785

SERVICING RIGHTS - Analysis of

SERVICING RIGHTS - Analysis of Residential Mortgage Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Residential MSR's
Balance at the beginning of the period			$ 2,341
Increases/(decreases) in fair value due to:
Balance at the end of the period	$ 2,629		2,629
Residential Mortgage Servicing Rights
SERVICING RIGHTS
Balance of loans serviced	129,200	$ 135,100	129,200	$ 135,100
Servicing fee income	80	85	163	172
Residential MSR's
Balance at the beginning of the period			1,556	1,523
Additions			73	83
Increases/(decreases) in fair value due to:
Changes in valuation input or assumptions			99	48
Paydowns			(81)	(114)
Balance at the end of the period	$ 1,647	$ 1,540	$ 1,647	$ 1,540

SERVICING RIGHTS - Sensitivity

SERVICING RIGHTS - Sensitivity of the Current Fair Value of Residential Mortgage (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
SERVICING RIGHTS
Fair value of servicing rights	$ 2,629		$ 2,341
Residential Mortgage Servicing Rights
SERVICING RIGHTS
Fair value of servicing rights	$ 1,647	$ 1,540	$ 1,556	$ 1,523
Weighted average life (years)	9 years 2 months 12 days	8 years
Prepayment speed assumption (as a percent)	6.46%	8.04%
Effect on fair value of a 20% increase	$ (106)	$ (112)
Effect on fair value of a 10% increase	(55)	(58)
Effect on fair value of a 10% decrease	59	63
Effect on fair value of a 20% decrease	$ 122	$ 132
Discount rate assumption (as a percent)	10.13%	9.63%
Effect on fair value of a 20% increase	$ (162)	$ (133)
Effect on fair value of a 10% increase	(85)	(70)
Effect on fair value of a 10% decrease	94	76
Effect on fair value of a 20% decrease	$ 201	$ 160
Escrow earnings credit assumption (as a percent)	2.89%	1.90%
Effect on fair value of a 20% increase	$ 74	$ 46
Effect on fair value of a 10% increase	37	23
Effect on fair value of a 10% decrease	(37)	(23)
Effect on fair value of a 20% decrease	$ (74)	$ (46)

SERVICING RIGHTS - Analysis o98

SERVICING RIGHTS - Analysis of SBA Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Servicing Rights
Balance at the beginning of the period			$ 2,341
Decreases in fair value due to:
Balance at the end of the period	$ 2,629		2,629
SBA servicing rights
SERVICING RIGHTS
Balance of loans serviced	61,300	$ 49,000	61,300	$ 49,000
Servicing fee income	132	113	252	233
Servicing Rights
Balance at the beginning of the period			785	646
Additions			382	238
Decreases in fair value due to:
Changes in valuation input or assumptions			(38)	(8)
Paydowns			(147)	(69)
Balance at the end of the period	$ 982	$ 807	$ 982	$ 807

SERVICING RIGHTS - Sensitivit99

SERVICING RIGHTS - Sensitivity of the Current Fair Value of SBA Loans (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
SERVICING RIGHTS
Fair value of servicing rights	$ 2,629		$ 2,341
SBA servicing rights
SERVICING RIGHTS
Servicing expenses per loan	1	$ 1
Fair value of servicing rights	$ 982	$ 807	$ 785	$ 646
Weighted average life (years)	5 years 3 months 18 days	5 years 7 months 6 days
Prepayment speed assumption (as a percent)	9.80%	8.91%
Effect on fair value of a 20% increase	$ (58)	$ (47)
Effect on fair value of a 10% increase	(30)	(24)
Effect on fair value of a 10% decrease	32	26
Effect on fair value of a 20% decrease	$ 66	$ 53
Discount rate assumption (as a percent)	13.63%	13.13%
Effect on fair value of a 20% increase	$ (79)	$ (65)
Effect on fair value of a 10% increase	(41)	(34)
Effect on fair value of a 10% decrease	45	37
Effect on fair value of a 20% decrease	$ 95	$ 78

DERIVATIVE FINANCIAL INSTRUM100

DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Financial Instruments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)instrument	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)instrument	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	$ 66,821		$ 66,821		$ 68,785
Fair value of asset derivatives	2,985		2,985		1,791
Other liabilities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, liability derivatives	74,743		74,743		76,818
Fair value of liability derivatives	2,913		2,913		1,778
Interest rate swap agreements
Derivative disclosures
Interest rate derivative net gain (loss)	11	$ (33)	57	$ 41
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	200,000		200,000
Fair value of asset derivatives					1,828
Interest rate swap agreements | Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	66,821		66,821		68,785
Fair value of asset derivatives	2,985		2,985		1,791
Interest rate swap agreements | Other liabilities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, liability derivatives	66,821		66,821		68,785
Fair value of liability derivatives	$ 2,911		$ 2,911		1,774
Interest rate swap agreements | Not designated as hedging instruments
Derivative disclosures
Number of interest rate derivatives held | instrument	24		24
Notional amount of derivative	$ 133,600		$ 133,600
Risk participation agreements
Derivative disclosures
Number of interest rate derivatives held | instrument	5		5
Notional amount of derivative	$ 7,900		$ 7,900
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value of liability derivatives	2		2
Risk participation agreements | Services charges and other non-interest income
Derivative disclosures
Interest rate derivative net gain (loss)	1		2	$ 2
Risk participation agreements | Other liabilities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, liability derivatives	7,922		7,922		8,033
Fair value of liability derivatives	$ 2		$ 2		$ 4

DERIVATIVE FINANCIAL INSTRUM101

DERIVATIVE FINANCIAL INSTRUMENTS - Offsetting Interest Rate Swap Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Interest rate swaps and risk participation agreements
Derivatives
Gross Amounts of Recognized Assets	$ 3,002
Net Amounts of Assets presented in the Statement of Financial Condition	3,002
Gross Amounts Not Offset in the Statement of Financial Condition
Collateral Received	2,569
Net Amount	$ 433
Interest rate swap agreements
Derivatives
Gross Amounts of Recognized Assets		$ 1,828
Net Amounts of Assets presented in the Statement of Financial Condition		1,828
Gross Amounts Not Offset in the Statement of Financial Condition
Collateral Received		1,346
Net Amount		$ 482

DERIVATIVE FINANCIAL INSTRUM102

DERIVATIVE FINANCIAL INSTRUMENTS - Offsetting Interest Rate Swap Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Interest rate swaps and risk participation agreements
Derivatives
Gross Amounts of Recognized Liabilities	$ 2,931
Net Amounts of Liabilities presented in the Statement of Financial Condition	2,931
Gross Amounts Not Offset in the Statement of Financial Condition
Net Amount	$ 2,931
Interest rate swap agreements
Derivatives
Gross Amounts of Recognized Liabilities		$ 1,815
Net Amounts of Liabilities presented in the Statement of Financial Condition		1,815
Gross Amounts Not Offset in the Statement of Financial Condition
Net Amount		$ 1,815

DERIVATIVE FINANCIAL INSTRUM103

DERIVATIVE FINANCIAL INSTRUMENTS - Other information (Details) $ in Thousands	Jun. 30, 2018USD ($)
Interest rate swap agreements
Derivative disclosures
Posted collateral	$ 0
Counterparty posted collateral	2,600
Interest rate swaps and risk participation agreements | Other liabilities
Derivative disclosures
Termination value of the interest rate swaps and risk participation agreements	$ 2,900

DERIVATIVE FINANCIAL INSTRUM104

DERIVATIVE FINANCIAL INSTRUMENTS - Cash Flow Hedges of Interest Rate Risk (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
Interest rate swap agreements
Cash flow hedges of interest rate risk
Collateral Received		$ 1,346
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Number of derivative instruments held | item	1
Notional amount, asset derivatives	$ 200,000
Fair value of asset derivatives		1,828
Cash Flow Hedges
Cash flow hedges of interest rate risk
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Year Ended December 31, 2017	6,214	922
Collateral Received	5,800
Cash Flow Hedges | Interest rate swap agreements
Cash flow hedges of interest rate risk
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) Year Ended December 31, 2017	6,214	922
Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	66,821	68,785
Fair value of asset derivatives	2,985	1,791
Other assets | Interest rate swap agreements
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	66,821	68,785
Fair value of asset derivatives	2,985	1,791
Other assets | Cash Flow Hedges
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	200,000	200,000
Fair value of asset derivatives	6,214	922
Other assets | Cash Flow Hedges | Interest rate swap agreements
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional amount, asset derivatives	200,000	200,000
Fair value of asset derivatives	$ 6,214	$ 922

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - $ / shares	Jul. 20, 2018	Jun. 30, 2018
SUBSEQUENT EVENTS
Dividend declared (in dollars per share)		$ 0.37
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
Dividend declared (in dollars per share)	$ 0.06