Penns Woods Bancorp (PWOD) 10-K 13 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 01, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	PENNS WOODS BANCORP INC
Entity Central Index Key	716,605
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 193,053,570
Entity Common Stock, Shares Outstanding		4,689,563
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS:
Noninterest-bearing balances	$ 25,692	$ 26,766
Interest-bearing deposits in other financial institutions	1,551	16,905
Total cash and cash equivalents	27,243	43,671
Investment securities available for sale, at fair value	124,475	133,492
Investment securities, trading	190	58
Loans held for sale	1,196	1,953
Loans	1,246,614	1,093,681
Allowance for loan losses	(12,858)	(12,896)
Loans, net	1,233,756	1,080,785
Premises and equipment, net	27,386	24,275
Accrued interest receivable	4,321	3,672
Bank-owned life insurance	27,982	27,332
Goodwill	17,104	17,104
Intangibles	1,462	1,799
Deferred tax asset	4,388	8,397
Other assets	4,989	6,052
TOTAL ASSETS	1,474,492	1,348,590
LIABILITIES:
Interest-bearing deposits	843,004	791,937
Noninterest-bearing deposits	303,316	303,277
Total deposits	1,146,320	1,095,214
Short-term borrowings	100,748	13,241
Long-term borrowings	70,970	85,998
Accrued interest payable	502	455
Other liabilities	17,758	15,433
TOTAL LIABILITIES	1,336,298	1,210,341
SHAREHOLDERS’ EQUITY:
Preferred stock, no par value, 3,000,000 shares authorized; no shares issued	0	0
Common stock, par value $8.33, 15,000,000 shares authorized; 5,009,339 and 5,007,109 shares issued; 4,689,189 and 4,734,657 shares outstanding	41,744	41,726
Additional paid-in capital	50,173	50,075
Retained earnings	63,364	61,610
Accumulated other comprehensive loss:
Net unrealized loss on available for sale securities	(54)	(639)
Defined benefit plan	(4,920)	(4,289)
Treasury stock at cost, 320,150 and 272,452 shares	(12,115)	(10,234)
TOTAL PENNS WOODS BANCORP, INC. SHAREHOLDERS’ EQUITY	138,192	138,249
Non controlling interest	2	0
TOTAL SHAREHOLDERS' EQUITY	138,194	138,249
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 1,474,492	$ 1,348,590

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	3,000,000	3,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 8.33	$ 8.33
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	5,009,339	5,007,109
Common stock, shares outstanding (in shares)	4,689,189	4,734,657
Treasury stock, shares (in shares)	320,150	272,452

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$ 45,833	$ 42,056	$ 39,134
Investment securities:
Taxable	2,182	2,424	3,426
Tax-exempt	1,218	1,498	2,795
Dividend and other interest income	744	835	769
TOTAL INTEREST AND DIVIDEND INCOME	49,977	46,813	46,124
INTEREST EXPENSE:
Deposits	4,083	3,547	3,129
Short-term borrowings	234	46	116
Long-term borrowings	1,580	1,974	1,974
TOTAL INTEREST EXPENSE	5,897	5,567	5,219
NET INTEREST INCOME	44,080	41,246	40,905
PROVISION FOR LOAN LOSSES	730	1,196	2,300
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	43,350	40,050	38,605
NON-INTEREST INCOME:
Service charges	2,222	2,249	2,383
Securities gains, available for sale	600	1,611	2,592
Securities (losses) gains, trading	(8)	58	(22)
Bank-owned life insurance	666	684	720
Gain on sale of loans	1,674	2,102	1,743
Insurance commissions	496	795	781
Brokerage commissions	1,378	1,098	1,064
Debit card income	1,960	1,896	1,692
Other	1,756	1,620	1,812
TOTAL NON-INTEREST INCOME	10,744	12,113	12,765
NON-INTEREST EXPENSE:
Salaries and employee benefits	18,999	17,813	17,023
Occupancy	2,447	2,223	2,248
Furniture and equipment	2,915	2,793	2,622
Software amortization	974	1,256	1,140
Pennsylvania shares tax	925	873	954
Professional Fees	2,353	2,096	1,919
Federal Deposit Insurance Corporation deposit insurance	669	767	867
Debit card expenses	602	604	576
Marketing	958	740	612
Intangible amortization	337	366	311
Other	5,683	5,560	5,464
TOTAL NON-INTEREST EXPENSE	36,862	35,091	33,736
INCOME BEFORE INCOME TAX PROVISION	17,232	17,072	17,634
INCOME TAX PROVISION	7,459	4,597	3,736
NET INCOME	$ 9,773	$ 12,475	$ 13,898
EARNINGS PER SHARE - BASIC AND DILUTED (in dollars per share)	$ 2.08	$ 2.64	$ 2.91
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED (in shares)	4,705,602	4,735,457	4,772,239
DIVIDENDS PER SHARE (in dollars per share)	$ 1.88	$ 1.88	$ 1.88

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net Income	$ 9,773	$ 12,475	$ 13,898
Other comprehensive income (loss):
Change in unrealized gain (loss) on available for sale securities	1,500	252	(1,457)
Tax effect	(510)	(85)	495
Net realized gain included in net income	(600)	(1,611)	(2,592)
Tax effect	204	547	882
Amortization (accretion) of unrecognized pension and post-retirement items	270	(352)	817
Tax effect	(92)	120	(277)
Total other comprehensive income (loss)	772	(1,129)	(2,132)
Comprehensive income	$ 10,545	$ 11,346	$ 11,766

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	COMMON STOCK	ADDITIONAL PAID-IN CAPITAL	RETAINED EARNINGS	ACCUMULATED OTHER COMPREHENSIVE (LOSS)	TREASURY STOCK	NON-CONTROLLING INTEREST
Beginning balance (in shares) at Dec. 31, 2014		5,002,649
Beginning balance at Dec. 31, 2014	$ 135,967	$ 41,688	$ 49,896	$ 53,107	$ (1,667)	$ (7,057)	$ 0
Increase (Decrease) in Shareholders' Equity
Net income	13,898			13,898
Reclassification of certain income tax effects from accumulated other comprehensive loss	0
Other comprehensive income (loss)	(2,132)				(2,132)
Stock-based compensation recognized in earnings	9		9
Dividends declared	(8,967)			(8,967)
Common shares issued for employee stock purchase plan (in shares)		2,335
Common shares issued for employee stock purchase plan	107	$ 20	87
Purchase of treasury stock	(2,603)					(2,603)
Ending balance (in shares) at Dec. 31, 2015		5,004,984
Ending balance at Dec. 31, 2015	136,279	$ 41,708	49,992	58,038	(3,799)	(9,660)	0
Increase (Decrease) in Shareholders' Equity
Net income	12,475			12,475
Reclassification of certain income tax effects from accumulated other comprehensive loss	0
Other comprehensive income (loss)	(1,129)				(1,129)
Stock-based compensation recognized in earnings	19		19
Dividends declared	(8,903)			(8,903)
Common shares issued for employee stock purchase plan (in shares)		2,125
Common shares issued for employee stock purchase plan	82	$ 18	64
Purchase of treasury stock	(574)					(574)
Ending balance (in shares) at Dec. 31, 2016		5,007,109
Ending balance at Dec. 31, 2016	138,249	$ 41,726	50,075	61,610	(4,928)	(10,234)	0
Increase (Decrease) in Shareholders' Equity
Net income	9,773			9,773
Reclassification of certain income tax effects from accumulated other comprehensive loss	0			818	(818)
Other comprehensive income (loss)	772				772
Stock-based compensation recognized in earnings	29		29
Dividends declared	(8,837)			(8,837)
Noncontrolling investment in joint venture	2						2
Common shares issued for employee stock purchase plan (in shares)		2,230
Common shares issued for employee stock purchase plan	87	$ 18	69
Purchase of treasury stock	(1,881)					(1,881)
Ending balance (in shares) at Dec. 31, 2017		5,009,339
Ending balance at Dec. 31, 2017	$ 138,194	$ 41,744	$ 50,173	$ 63,364	$ (4,974)	$ (12,115)	$ 2

CONSOLIDATED STATEMENT OF CHAN7

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 1.88	$ 1.88	$ 1.88
Purchase of treasury stock (in shares)	47,698	14,600	60,018

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
OPERATING ACTIVITIES:
Net Income	$ 9,773	$ 12,475	$ 13,898
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,632	3,146	3,366
Amortization of intangible assets	337	366	311
Provision for loan losses	730	1,196	2,300
Amortization of investment security discounts and premiums, net	893	870	873
Securities gains, net	(600)	(1,611)	(2,592)
Originations of loans held for sale	(53,407)	(68,362)	(56,058)
Proceeds of loans held for sale	55,838	69,268	57,594
Gain on sale of loans	(1,674)	(2,102)	(1,743)
Net securities losses (gains), trading	8	(58)	22
Proceeds from sales of trading securities	426	3,826	709
Purchases of trading securities	(566)	(3,753)	(804)
Earnings on bank-owned life insurance	(666)	(684)	(720)
Decrease in deferred tax asset	1,769	1,543	209
Other, net	2,200	(7)	(1,630)
Net cash provided by operating activities	17,693	16,113	15,735
Investment securities available for sale:
Proceeds from sales	25,528	44,829	65,672
Proceeds from calls and maturities	11,564	25,558	22,859
Purchases	(22,986)	(28,322)	(32,776)
Net increase in loans	(152,806)	(49,590)	(130,803)
Acquisition of bank premises and equipment	(4,999)	(4,061)	(2,285)
Proceeds from the sale of foreclosed assets	1,108	859	1,868
Purchase of bank-owned life insurance	(34)	(27)	(30)
Capital contribution from non-controlling interest	2	0	0
Proceeds from redemption of regulatory stock	7,677	3,160	10,790
Purchases of regulatory stock	(12,158)	(3,178)	(12,818)
Net cash used for investing activities	(147,104)	(10,772)	(77,523)
FINANCING ACTIVITIES:
Net increase in interest-bearing deposits	51,067	40,140	13,756
Net increase in noninterest-bearing deposits	39	23,194	36,705
Proceeds from long-term borrowings	30,000	0	30,625
Repayment of long-term borrowings	(45,028)	(5,027)	(10,776)
Net increase (decrease) in short-term borrowings	87,507	(33,397)	5,820
Dividends paid	(8,837)	(8,903)	(8,967)
Issuance of common stock	116	101	116
Purchase of treasury stock	(1,881)	(574)	(2,603)
Net cash provided by financing activities	112,983	15,534	64,676
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(16,428)	20,875	2,888
CASH AND CASH EQUIVALENTS, BEGINNING	43,671	22,796	19,908
CASH AND CASH EQUIVALENTS, ENDING	27,243	43,671	22,796
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	5,850	5,538	5,174
Income taxes paid	4,450	4,025	2,933
Transfer of loans to foreclosed real estate	$ 593	$ 772	$ 340

OPERATIONS AND SUMMARY OF SIGNI

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of Penns Woods Bancorp, Inc. and its wholly owned subsidiaries, Jersey Shore State Bank (“JSSB”), Luzerne Bank ("Luzerne" and collectively with JSSB , the "Banks"), Woods Real Estate Development Co., Inc., Woods Investment Company, Inc., The M Group Inc. D/B/A The Comprehensive Financial Group (“The M Group”), a wholly owned subsidiary of JSSB and an eighty percent owned partnership, United Solutions, LLC, (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. Nature of Business The Banks engage in a full-service commercial banking business, making available to the community a wide range of financial services including, but not limited to, installment loans, credit cards, mortgage and home equity loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities and local government, and various types of demand and time deposits including, but not limited to, checking accounts, savings accounts, money market deposit accounts, certificates of deposit, and IRAs. Deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”) to the extent provided by law. The financial services are provided by the Banks to individuals, partnerships, non-profit organizations, and corporations through their twenty-six offices located in Clinton, Lycoming, Centre, Montour, Union, and Luzerne Counties, Pennsylvania. Woods Real Estate Development Co., Inc. engages in real estate transactions on behalf of Penns Woods Bancorp, Inc. and the Banks. Woods Investment Company, Inc., a Delaware holding company, is engaged in investing activities. The M Group engages in securities brokerage and financial planning services, which include the sale of life insurance products, annuities, and estate planning services. United Insurance Solutions, LLC will be offering property and casualty and auto insurance products within the Company's market footprint beginning in 2018. Operations are managed and financial performance is evaluated on a corporate-wide basis. Accordingly, all financial service operations are considered by management to be aggregated in one reportable operating segment. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of net deferred tax assets, impairment of goodwill, other than temporary impairment of debt and equity securities, fair value of financial instruments, and the valuation of real estate acquired through, or in lieu of, foreclosure on settlement of debt. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and in banks and federal funds sold. Interest-earning deposits mature within 90 days and are carried at cost. Net cash flows are reported for loan, deposit, and short-term borrowing transactions. Restrictions on Cash and Cash Equivalents Based on deposit levels, the Banks must maintain cash and other reserves with the Federal Reserve Bank of Philadelphia ("FRB"). Investment Securities Investment securities are classified at the time of purchase, based on management’s intention and ability, as securities held to maturity, securities available for sale, or securities held for trading. Debt securities acquired with the intent and ability to hold to maturity are stated at cost, adjusted for amortization of premium and accretion of discount, which are computed using the interest method and recognized as adjustments of interest income. Certain other debt securities have been classified as available for sale to serve principally as a source of liquidity. Unrealized holding gains and losses for available for sale securities are reported as a separate component of shareholders’ equity, net of tax, until realized. Unrealized holding gains and losses for equity securities held for trading are recognized as a separate component within the income statement. Realized security gains and losses are computed using the specific identification method for debt securities and the average cost method for marketable equity securities. Interest and dividends on investment securities are recognized as income when earned. Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in its fair value, whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in fair value, and a review of the Company’s capital adequacy, interest rate risk position, and liquidity. The assessment of a security’s ability to recover any decline in fair value, the ability of the issuer to meet contractual obligations, and management’s intent and ability requires considerable judgment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statement of Income. Fair values of investment securities are based on observed market prices. Certain investment securities do not have observed bid prices and their fair value is based on instruments with similar risk elements. Since regulatory stock is redeemable at par, the Company carries it at cost. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are stated at the principal amount outstanding, net of deferred fees and discounts, unamortized loan fees and costs, and the allowance for loan losses. Interest on loans is recognized as income when earned on the accrual method. The Company’s general policy has been to stop accruing interest on loans when it is determined a reasonable doubt exists as to the collectability of additional interest. Income is subsequently recognized only to the extent that cash payments are received provided the loan is not delinquent in payment and, in management’s judgment, the borrower has the ability and intent to make future principal payments. Otherwise, payments are applied to the unpaid principal balance of the loan. Loans are restored to accrual status if certain conditions are met, including but not limited to, the repayment of all unpaid interest and scheduled principal due, ongoing performance consistent with the contractual agreement, and the future expectation of continued, timely payments. Loan origination and commitment fees as well as certain direct loan origination costs are being deferred and amortized as an adjustment to the related loan’s yield over the contractual lives of the related loans. Allowance for Loan Losses The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio as of the Consolidated Balance Sheet date. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses charged to operations. The provision for loan losses is based upon management’s quarterly review of the loan portfolio. The purpose of the review is to assess loan quality, identify impaired loans, analyze delinquencies, ascertain loan growth, evaluate potential charge-offs and recoveries, and assess general economic conditions in the markets served. An external independent loan review is also performed annually for the Bank. Management remains committed to an aggressive program of problem loan identification and resolution. The allowance is calculated by applying loss factors to outstanding loans by type, excluding loans for which a specific allowance has been determined. Loss factors are based on management’s consideration of the nature of the portfolio segments, changes in mix and volume of the loan portfolio, historical loan loss experience, and general economic conditions. In addition, management considers industry standards and trends with respect to nonperforming loans and its knowledge and experience with specific lending segments. Although management believes that it uses the best information available to make such determinations and that the allowance for loan losses is adequate at December 31, 2017, future adjustments could be necessary if circumstances or economic conditions differ substantially from the assumptions used in making the initial determinations. A downturn in the local economy, rising unemployment, or negative performance trends in financial information from borrowers could be indicators of subsequent increased levels of nonperforming assets and possible charge-offs, which would normally require increased loan loss provisions. An integral part of the periodic regulatory examination process is the review of the adequacy of the Banks' loan loss allowance. The regulatory agencies could require the Banks, based on their evaluation of information available at the time of their examination, to provide additional loan loss provisions to further supplement the allowance. Impaired loans are commercial and commercial real estate loans for which it is probable the Banks will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Banks individually evaluate such loans for impairment and do not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Banks may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial or commercial real estate loan. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral. Mortgage loans on one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. Loan Charge-off Policies Loans are generally fully or partially charged down to the fair value of collateral securing the asset when: • management judges the asset to be uncollectible; • repayment is deemed to be protracted beyond reasonable time frames; • the asset has been classified as a loss by either the internal loan review process or external examiners; • the borrower has filed bankruptcy and the loss becomes evident due to a lack of assets; or • the loan is 180 days past due unless both well secured and in the process of collection. Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a troubled debt restructuring ("TDR"). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate allowance for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment. Loans Held for Sale In general, fixed rate residential mortgage loans originated by the Banks are held for sale and are carried at cost due to their short holding period, which can range from less than two weeks to a maximum of thirty days. Sold loans are not serviced by the Banks. Proceeds from the sale of loans in excess of the carrying value are accounted for as a gain. Total gains on the sale of loans are shown as a component of non-interest income within the Consolidated Statement of Income. Foreclosed Assets Foreclosed assets are carried at the lower of cost or fair value less estimated selling costs. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for loan losses, if necessary. Any subsequent write-downs are charged against operating expenses. Net operating expenses and gains and losses realized from disposition are included in non-interest expense and income, respectively, within the Consolidated Statement of Income. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using straight-line and accelerated methods over the estimated useful lives of the related assets, which range from five to ten years for furniture, fixtures, and equipment and fifteen to forty years for buildings and improvements. Costs incurred for routine maintenance and repairs are charged to operations as incurred. Costs of major additions and improvements are capitalized. Bank-Owned Life Insurance The Company has purchased life insurance policies on certain officers and directors. Bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Increases in the cash surrender value are recognized as a component of non-interest income within the Consolidated Statement of Income. Goodwill The Company performs an annual impairment analysis of goodwill for its purchased subsidiaries, Luzerne and The M Group. Based on the fair value of these reporting units, estimated using the expected present value of future cash flows, no impairment of goodwill was recognized in 2017 , 2016 , or 2015 . Intangible Assets At December 31, 2017 , the Company had intangible assets of $641,000 as a result of the acquisition of Luzerne National Bank Corporation, which is net of accumulated amortization of $1,373,000 . These intangible assets will continue to be amortized using the sum-of-the-years digits method of amortization over ten years. The Company also had intangible assets of $821,000 , which is net of accumulated amortization of $192,000 , as a result of the purchase of two books of business related to investment product sales. The book of business intangible is being amortized using the straight-line method over a period of ten years. Investments in Limited Partnerships The Company is a limited partner in three partnerships at December 31, 2017 that provide low income elderly housing in the Company’s geographic market area. The carrying value of the Company’s investments in limited partnerships was $402,000 at December 31, 2017 and $586,000 at December 31, 2016 . The investments are being amortized over the ten -year tax credit receipt period utilizing the straight-line method. The partnerships are amortized once the projects reach the level of occupancy needed to begin the ten year tax credit recognition period. Amortization of limited partnership investments amounted to $184,000 , $312,000 , and $661,000 for 2017, 2016 and 2015 , respectively. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company enters into off-balance sheet financial instruments. Those instruments consist of commitments to extend credit and standby letters of credit. When those instruments are funded or become payable, the Company reports the amounts in its financial statements. Marketing Cost Marketing costs are generally expensed as incurred. Income Taxes The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. Deferred tax assets and liabilities result from temporary differences in financial and income tax methods of accounting, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company analyzed its deferred tax asset position and determined that there was not a need for a valuation allowance due to the Company’s ability to generate future ordinary and capital taxable income. On December 22, 2017 the Tax Cut and Jobs Act was signed into law. ASC 740 (Income Taxes) requires the recognition of the effect of changes in tax laws or rates in the period in which the legislation is enacted. The changes in the deferred tax assets and liabilities remeasured at the new 21% federal tax rate are reflected in income tax expense for fiscal year 2017. The Company when applicable recognizes interest and penalties on income taxes as a component of income tax provision. Earnings Per Share The Company provides dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated utilizing net income as reported in the numerator and weighted average shares outstanding in the denominator. The computation of diluted earnings per share differs in that the dilutive effects of any stock options are adjusted in the denominator. Employee Benefits Pension and employee benefits include contributions, determined actuarially, to a defined benefit retirement plan covering the eligible employees of JSSB. The plan is funded on a current basis to the extent that it is deductible under existing federal tax regulations. Pension and other employee benefits also include contributions to a defined contribution Section 401(k) plan covering eligible employees. Contributions matching those made by eligible employees are funded throughout the year. In addition, an elective contribution may be made annually at the discretion of the board of directors for the employees of JSSB with no contributions made since 2015. The M Group Products and Income Recognition The M Group product line is comprised primarily of annuities, life insurance, and mutual funds. The revenues generated from life insurance sales are commission only, as The M Group does not underwrite the policies. Life insurance sales include permanent and term policies with the majority of the policies written being permanent. Term life insurance policies are written for 10 , 15 , 20 , and 30 year terms with the majority of the policies being written for 20 years. None of these products are offered as an integral part of lending activities. Commissions from the sale of annuities are recognized at the time notice is received from the third party broker/dealer or an insurance company that the transaction has been accepted and approved, which is also the time when commission income is received. Life insurance commissions are recognized at varying points based on the payment option chosen by the customer. Commissions from monthly and annual payment plans are recognized at the start of each annual period for the life insurance, while quarterly and semi-annual premium payments are recognized quarterly and semi-annually when the earnings process is complete. For example, semi-annual payments on the first of January and July would result in commission income recognition on the first of January and July, while payments on the first of January, April, July, and October would result in commission income recognition on those dates. The potential for chargebacks only exists for those policies on a monthly payment plan since income is recognized at the beginning of the annual coverage period versus at the time of each monthly payment. No liability is maintained for chargebacks as these are removed from income at the time of the occurrence. Accumulated Other Comprehensive Income (Loss) The Company is required to present accumulated other comprehensive income (loss) in a full set of general-purpose financial statements for all periods presented. Accumulated other comprehensive income (loss) is comprised of unrealized holding gains (losses) on the available for sale securities portfolio and the unrecognized components of net periodic benefit costs of the defined benefit pension plan. Segment Reporting The Company has determined that its only reportable segment is Community Banking. Reclassification of Comparative Amounts Certain items previously reported have been reclassified to conform to the current year’s reporting format. Such reclassifications did not affect net income or shareholders’ equity. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Since the guidance scopes out revenue associated with financial instruments, including loan receivables and investment securities, we do not expect the adoption of the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's revenue is not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers ( Topic 606 ). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is evaluating the effect of adopting this new accounting Update. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. 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. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. ASU 2016-01 will be effective for us on January 1, 2018 and will not have a significant impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1 percent increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In March 2016, the FASB issued ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20). The standard provides that liabilities related to the sale of prepaid stored-value products within the scope of this Update are financial liabilities. The amendments in the Update provide a narrow-scope exception to the guidance in Subtopic 405-20 to require that breakage for those liabilities be accounted for consistent with the breakage guidance in Topic 606. The amendments in this Update are effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Earlier application is permitted, including adoption in an interim period. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in To

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component shown, net of tax and parenthesis indicating debits to net income, as of December 31, 2017 , 2016 , and 2015 were as follows: Twelve Months Ended Twelve Months Ended Twelve Months Ended (In Thousands) Net Unrealized Gain(Loss) on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain (Loss) on Available * Defined * Total * Net Unrealized Gain (Loss) on Available * Defined * Total * Beginning balance * $ (639 ) $ (4,289 ) $ (4,928 ) $ 258 $ (4,057 ) $ (3,799 ) $ 2,930 $ (4,597 ) $ (1,667 ) Other comprehensive income (loss) before reclassifications * 990 63 1,053 167 (333 ) (166 ) (962 ) 435 (527 ) Amounts reclassified from accumulated other comprehensive (loss) income * (396 ) 115 (281 ) (1,064 ) 101 (963 ) (1,710 ) 105 (1,605 ) Net current-period other comprehensive income (loss) * 594 178 772 (897 ) (232 ) (1,129 ) (2,672 ) 540 (2,132 ) Reclassification of certain income tax effects from accumulated other comprehensive loss (9 ) (809 ) (818 ) — — — — — — Ending balance $ (54 ) $ (4,920 ) $ (4,974 ) $ (639 ) $ (4,289 ) $ (4,928 ) $ 258 $ (4,057 ) $ (3,799 ) * Amounts net of 34% tax rate The preceding table includes current guidance issued related to Income Statement- Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). The Company has elected to reclassify the portion in accumulated other comprehensive income (AOCI) that would have been otherwise stranded. Amounts were reclassified for both components included in AOCI and their ending balance as of December 31, 2017 is net of tax at the 21% corporate tax rate. The reclassifications out of accumulated other comprehensive income shown, net of tax and parenthesis indicating debits to net income, as of December 31, 2017 , 2016 , and 2015 were as follows: (In Thousands) Amount Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Comprehensive Income Components Twelve Months Ended Affected Line Item in the Consolidated Statement of Income December 31, 2017 December 31, 2016 December 31, 2015 Net realized gain on available for sale securities 600 $ 1,611 $ 2,592 Securities gains, net Income tax effect (204 ) (547 ) (882 ) Income tax provision $ 396 1,064 1,710 Net unrecognized pension costs (174 ) (153 ) (159 ) Salaries and employee benefits Income tax effect 59 52 54 Income tax provision $ (115 ) $ (101 ) $ (105 )

PER SHARE DATA

PER SHARE DATA	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
PER SHARE DATA	PER SHARE DATA There are no convertible securities which would affect the denominator in calculating basic and dilutive earnings per share; therefore, net income as presented on the consolidated statement of income will be used as the numerator. The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and dilutive per share computation. Year Ended December 31, 2017 2016 2015 Weighted average common shares issued 5,008,073 5,005,971 5,003,691 Average treasury stock shares (302,471 ) (270,514 ) (231,452 ) Weighted average common shares used to calculate basic and diluted earnings per share 4,705,602 4,735,457 4,772,239 There were a total of 93,500 non-qualified employee stock options (Note 14) outstanding on December 31, 2017 that had a weighted average strike price of $43.59 . Options on December 31, 2016 had an average strike price of $42.03 with a total of 26,500 options outstanding. Grants outstanding at year-end 2015 totaled to 34,750 options with an average strike price of $ 42.03 . These options were excluded, on a weighted average basis, in the computation of diluted earnings per share for all periods presented due to the average market price of common shares being less than the strike price of the options.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	INVESTMENT SECURITIES The amortized cost, gross gains and losses, and fair values of investment securities at December 31, 2017 and 2016 are as follows: 2017 (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale (AFS): Mortgage-backed securities $ 4,273 $ 51 $ (111 ) $ 4,213 Asset-backed securities — — — — State and political securities 56,295 411 (198 ) 56,508 Other debt securities 48,807 180 (1,080 ) 47,907 Total debt securities 109,375 642 (1,389 ) 108,628 Financial institution equity securities 13,868 728 — 14,596 Other equity securities 1,300 — (49 ) 1,251 Total equity securities 15,168 728 (49 ) 15,847 Total investment securities AFS $ 124,543 $ 1,370 $ (1,438 ) $ 124,475 2016 (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale (AFS): Mortgage-backed securities $ 9,295 $ 182 $ (164 ) $ 9,313 Asset-backed securities 109 — — 109 State and political securities 60,777 666 (509 ) 60,934 Other debt securities 53,046 137 (2,065 ) 51,118 Total debt securities 123,227 985 (2,738 ) 121,474 Financial institution equity securities 9,566 969 — 10,535 Other equity securities 1,667 — (184 ) 1,483 Total equity securities 11,233 969 (184 ) 12,018 Total investment securities AFS $ 134,460 $ 1,954 $ (2,922 ) $ 133,492 The amortized cost and fair values of trading investment securities at December 31, 2017 and 2016 are as follows. 2017 (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Financial institution equity securities $ 20 $ — $ — $ 20 Other equity securities 192 2 (24 ) 170 Total trading securities $ 212 $ 2 $ (24 ) $ 190 2016 (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Financial institution equity securities $ — $ — $ — $ — Other equity securities 56 2 — 58 Total trading securities $ 56 $ 2 $ — $ 58 The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at December 31, 2017 and 2016 . 2017 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) Value Losses Value Losses Value Losses Available for Sale (AFS) Mortgage-backed securities $ 981 $ (12 ) $ 2,276 $ (99 ) $ 3,257 $ (111 ) State and political securities 15,691 (104 ) 3,018 (94 ) 18,709 (198 ) Other debt securities 7,512 (148 ) 28,517 (932 ) 36,029 (1,080 ) Total debt securities 24,184 (264 ) 33,811 (1,125 ) 57,995 (1,389 ) Other equity securities 1,251 (49 ) — — 1,251 (49 ) Total equity securities 1,251 (49 ) — — 1,251 (49 ) Total Investment Securities AFS $ 25,435 $ (313 ) $ 33,811 $ (1,125 ) $ 59,246 $ (1,438 ) 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) Value Losses Value Losses Value Losses Available for Sale (AFS) Mortgage-backed securities $ 3,572 $ (106 ) $ 3,627 $ (58 ) $ 7,199 $ (164 ) State and political securities 26,113 (509 ) — — 26,113 (509 ) Other debt securities 28,140 (1,179 ) 12,240 (886 ) 40,380 (2,065 ) Total debt securities 57,825 (1,794 ) 15,867 (944 ) 73,692 (2,738 ) Other equity securities 727 (140 ) 756 (44 ) 1,483 (184 ) Total equity securities 727 (140 ) 756 (44 ) 1,483 (184 ) Total Investment Securities AFS $ 58,552 $ (1,934 ) $ 16,623 $ (988 ) $ 75,175 $ (2,922 ) At December 31, 2017 there were 37 individual securities in a continuous unrealized loss position for less than twelve months and 22 individual securities in a continuous unrealized loss position for greater than twelve months. The Company reviews its position quarterly and has asserted that at December 31, 2017 and 2016 , the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe they will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the non-collection of principal and interest during the period. The amortized cost and fair value of debt securities at December 31, 2017 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In Thousands) Amortized Cost Fair Value Due in one year or less $ 4,696 $ 4,684 Due after one year to five years 43,748 43,609 Due after five years to ten years 49,777 49,063 Due after ten years 11,154 11,272 Total $ 109,375 $ 108,628 Total gross proceeds from sales of securities available for sale were $25,528,000 , $44,829,000 , and $65,672,000 for 2017 , 2016 , and 2015 , respectively. The following table represents gross realized gains and losses on those transactions: Year Ended December 31, (In Thousands) 2017 2016 2015 Gross realized gains: U.S. Government and agency securities $ — $ 11 $ — Mortgage-backed securities 69 35 — State and political securities 408 787 1,571 Other debt securities 53 283 825 Financial institution equity securities 288 572 183 Other equity securities — 217 132 Total gross realized gains $ 818 $ 1,905 $ 2,711 Gross realized losses: U.S. Government and agency securities $ — $ 5 $ — Asset-backed securities — 13 — State and political securities 18 1 22 Other debt securities 51 189 54 Financial institution equity securities — — — Other equity securities 149 86 43 Total gross realized losses $ 218 $ 294 $ 119 There were no impairment charges included in gross realized losses for the years ended December 31, 2017 , 2016 , and 2015 . Investment securities with a carrying value of approximately $89,736,000 and $95,199,000 at December 31, 2017 and 2016 , respectively, were pledged to secure certain deposits, repurchase agreements, and for other purposes as required by law. There is no concentration of investments that exceed ten percent of shareholders’ equity for any individual issuer, excluding those guaranteed by the U.S. Government.

FEDERAL HOME LOAN BANK STOCK

FEDERAL HOME LOAN BANK STOCK	12 Months Ended
	Dec. 31, 2017
Federal Home Loan Banks [Abstract]
FEDERAL HOME LOAN BANK STOCK	FEDERAL HOME LOAN BANK STOCK The Banks are members of the Federal Home Loan Bank (“FHLB”) of Pittsburgh and as such, are required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment as necessary. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. Management considered that the FHLB maintains regulatory capital ratios in excess of all regulatory capital requirements, liquidity appears adequate, new shares of FHLB stock continue to change hands at the $100 par value, and the payment of dividends.

LOAN CREDIT QUALITY AND RELATED

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]
LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES	LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES Management segments the Banks' loan portfolio to a level that enables risk and performance monitoring according to similar risk characteristics. Loans are segmented based on the underlying collateral characteristics. Categories include commercial, financial, and agricultural, real estate, and installment loans to individuals. Real estate loans are further segmented into three categories: residential, commercial, and construction. The following table presents the related aging categories of loans, by segment, as of December 31, 2017 and 2016 : 2017 (In Thousands) Current Past Due 30 To 89 Days Past Due 90 & Still Accruing Non-Accrual Total Commercial, financial, and agricultural $ 178,022 $ 663 $ 86 $ 114 $ 178,885 Real estate mortgage: Residential 588,278 6,853 318 1,628 597,077 Commercial 325,148 1,823 80 4,968 332,019 Construction 31,547 116 20 — 31,683 Installment loans to individuals 106,335 289 5 49 106,678 1,229,330 $ 9,744 $ 509 $ 6,759 1,246,342 Net deferred loan fees and discounts 272 272 Allowance for loan losses (12,858 ) (12,858 ) Loans, net $ 1,216,744 $ 1,233,756 2016 (In Thousands) Current Past Due 30 To 89 Days Past Due 90 & Still Accruing Non-Accrual Total Commercial, financial, and agricultural $ 145,179 $ 785 $ 14 $ 132 $ 146,110 Real estate mortgage: Residential 553,053 9,112 587 1,988 564,740 Commercial 296,537 786 268 8,591 306,182 Construction 33,879 771 — — 34,650 Installment loans to individuals 43,008 202 1 45 43,256 1,071,656 $ 11,656 $ 870 $ 10,756 1,094,938 Net deferred loan fees and discounts (1,257 ) (1,257 ) Allowance for loan losses (12,896 ) (12,896 ) Loans, net $ 1,057,503 $ 1,080,785 Purchased loans acquired are recorded at fair value on their purchase date without a carryover of the related allowance for loan losses. Upon acquisition, the Company evaluated whether each acquired loan (regardless of size) was within the scope of ASC 310-30. Purchased credit-impaired loans are loans that have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. The fair value of purchased credit-impaired loans, on the acquisition date, was determined primarily based on the fair value of loan collateral. The following table presents the interest income if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans as of December 31, 2017 , 2016 , and 2015 : Year Ended December 31, 2017 2016 2015 (In Thousands) Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Commercial, financial, and agricultural $ 23 $ 15 $ 6 $ — $ 48 $ 53 Real estate mortgage: Residential 147 98 151 101 53 38 Commercial 390 238 496 105 281 54 Construction — — — — 16 — Installment loans to individuals 5 3 3 2 — — $ 565 $ 354 $ 656 $ 208 $ 398 $ 145 Impaired Loans Impaired loans are loans for which it is probable the Banks will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Banks individually evaluate such loans for impairment and do not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. The Banks may choose to place a loan on non-accrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loan. When foreclosure is probable, impairment is measured based on the fair value of the collateral. Management evaluates individual loans in all of the commercial segments for possible impairment if the loan is greater than $100,000 and if the loan is either on non-accrual status or has a risk rating of substandard or worse. Management may also elect to measure an individual loan for impairment if less than $100,000 on a case by case basis. Mortgage loans on one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment collectively with the exception of loans identified as troubled debt restructurings. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. Interest income for impaired loans is recorded consistent to the Banks' policy on non-accrual loans. The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of December 31, 2017 and 2016 : 2017 (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 1,033 $ 1,033 $ — Real estate mortgage: Residential 1,428 1,428 — Commercial 1,465 1,465 — Construction — — — 3,926 3,926 — With an allowance recorded: Commercial, financial, and agricultural 235 235 96 Real estate mortgage: Residential 2,304 2,353 367 Commercial 7,981 8,031 1,721 Construction — — — 10,520 10,619 2,184 Total: Commercial, financial, and agricultural 1,268 1,268 96 Real estate mortgage: Residential 3,732 3,781 367 Commercial 9,446 9,496 1,721 Construction — — — $ 14,446 $ 14,545 $ 2,184 2016 (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 109 $ 109 $ — Real estate mortgage: Residential 1,584 1,584 — Commercial 1,833 1,833 — Construction — — — 3,526 3,526 — With an allowance recorded: Commercial, financial, and agricultural 132 132 74 Real estate mortgage: Residential 1,893 1,893 437 Commercial 10,425 10,520 1,668 Construction — — — 12,450 12,545 2,179 Total: Commercial, financial, and agricultural 241 241 74 Real estate mortgage: Residential 3,477 3,477 437 Commercial 12,258 12,353 1,668 Construction — — — $ 15,976 $ 16,071 $ 2,179 The following table presents the average recorded investment in impaired loans and related interest income recognized for December 31, 2017 , 2016 , and 2015 : 2017 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 727 $ 41 $ 7 Real estate mortgage: Residential 3,233 75 91 Commercial 11,551 186 233 Construction — — — Installment loans to individuals 5 — 1 $ 15,516 $ 302 $ 332 2016 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 400 $ 16 $ 1 Real estate mortgage: Residential 3,471 89 101 Commercial 12,887 187 110 Construction 138 — — $ 16,896 $ 292 $ 212 2015 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 1,031 $ 21 $ 10 Real estate mortgage: Residential 2,570 72 47 Commercial 17,529 342 80 Construction 865 1 53 $ 21,995 $ 436 $ 190 Currently there are no additional funds needed to be advanced in connection with impaired loans. Modifications The loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. Loan modifications that are considered TDRs completed during the twelve months ended December 31, 2017 and 2016 were as follows: Year Ended December 31, 2017 2016 (In Thousands, Except Number of Contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and agricultural — $ — $ — — $ — $ — Real estate mortgage: Residential 6 1,015 1,015 3 397 397 Commercial 2 371 371 1 400 400 Construction — — — — — — Total 8 $ 1,386 $ 1,386 4 $ 797 $ 797 Of the eight new troubled debt restructurings that were granted for the year ended December 31, 2017, six loans totaling $ 1,061,000 were granted payment concessions, one loan totaling $ 273,000 was granted a rate concession, and one loan totaling $ 52,000 was granted a term concession. The four new troubled debt restructurings granted for the year ended December 31, 2016 totaling $ 797,000 were granted term concessions. No loan modifications considered troubled debt restructurings made during the twelve months previous to December 31, 2017 and December 31, 2016, have defaulted during the corresponding twelve month periods. Internal Risk Ratings Management uses a ten point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are evaluated for Substandard classification. Loans in the Doubtful category exhibit the same weaknesses found in the Substandard loans, however, the weaknesses are more pronounced. Such loans are static and collection in full is improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Loans classified Loss are considered uncollectible and charge-off is imminent. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Banks have a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the pass category unless a specific action, such as bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. An external annual loan review of large commercial relationships is performed, as well as a sample of smaller transactions. During 2017, the threshold for the annual loan review was commercial relationships $1,600,000 or greater for JSSB and $1,400,000 or greater for Luzerne. Confirmation of the appropriate risk category is included in the review. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard, Doubtful, or Loss on a quarterly basis. The following table presents the credit quality categories identified above as of December 31, 2017 and 2016 : 2017 Commercial and Real Estate Mortgages Installment Loans (In Thousands) Agricultural Residential Commercial Construction to Individuals Totals Pass $ 175,603 $ 593,828 $ 311,209 $ 31,535 $ 106,678 $ 1,218,853 Special Mention 738 1,043 7,337 — — 9,118 Substandard 2,544 2,206 13,473 148 — 18,371 Total $ 178,885 $ 597,077 $ 332,019 $ 31,683 $ 106,678 $ 1,246,342 2016 Commercial and Real Estate Mortgages Installment Loans (In Thousands) Agricultural Residential Commercial Construction to Individuals Totals Pass $ 140,497 $ 561,440 $ 277,916 $ 34,493 $ 43,256 $ 1,057,602 Special Mention 2,943 740 11,143 — — 14,826 Substandard 2,670 2,560 17,123 157 — 22,510 Total $ 146,110 $ 564,740 $ 306,182 $ 34,650 $ 43,256 $ 1,094,938 Allowance for Loan Losses An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated future loss experience, and the amount of non-performing loans. The Banks' methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (previously discussed) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Banks' ALL. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. Allowances are segmented based on collateral characteristics previously disclosed, and consistent with credit quality monitoring. Loans that are collectively evaluated for impairment are grouped into two classes for evaluation. A general allowance is determined for “Pass” rated credits, while a separate pool allowance is provided for “Criticized” rated credits that are not individually evaluated for impairment. For the general allowances historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. A historical charge-off factor is calculated utilizing a twelve quarter moving average. However, management may adjust the moving average time frame by up to four quarters to adjust for variances in the economic cycle. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; and concentrations of credit from a loan type, industry, and/or geographic standpoint. There was a substantial increase in our indirect loan portfolio in 2017 which resulted in an increase of 20 basis points within this qualitative factor. Additionally, the tenure of our credit department allowed us to incur a slight adjustment within our experience factor. Due to an increase in foreclosures nationally, we adjusted our residential loans category accordingly. Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management also monitors industry loss factors by loan segment for applicable adjustments to actual loss experience. Management reviews the loan portfolio on a quarterly basis in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Over the last three years, various quantitative and qualitative factors indicate changes in our provision for loan losses. The provision for commercial and agricultural loans decreased based on changes in the economic cycle and our historical loss factors within this loan type. The change in the provision for residential real estate loans vary based on our observations of industry trends during 2017 in national foreclosure rates. A decrease in the provision for commercial real estate loans is due to bank and industry historical analysis. Our portfolio of construction loans has remained steady in recent years. The provision for this loan type is adjusted by national indices as well as our historical losses. In 2016 and 2017, the substantial growth in our indirect loan portfolio has been the key driver for the increase in allocation of provision for the installment loans to individuals segment of the portfolio. Activity in the allowance is presented for the twelve months ended December 31, 2017 , 2016 , and 2015 : 2017 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individual (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 Charge-offs (106 ) (578 ) (58 ) — (303 ) — (1,045 ) Recoveries 135 55 1 9 77 — 277 Provision (406 ) 819 (641 ) (32 ) 885 105 730 Ending Balance $ 1,177 $ 5,679 $ 4,277 $ 155 $ 1,075 $ 495 $ 12,858 2016 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 Charge-offs (167 ) (39 ) (93 ) (2 ) (229 ) — (530 ) Recoveries 62 15 8 9 92 — 186 Provision 127 291 843 11 310 (386 ) 1,196 Ending Balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 2015 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,124 $ 3,755 $ 4,205 $ 786 $ 245 $ 464 $ 10,579 Charge-offs (283 ) (49 ) (743 ) (46 ) (240 ) — (1,361 ) Recoveries 176 81 182 23 64 — 526 Provision 515 1,329 573 (603 ) 174 312 2,300 Ending Balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 The Company grants commercial, industrial, residential, and installment loans to customers throughout north-central and north-eastern Pennsylvania. Although the Company has a diversified loan portfolio at December 31, 2017 and 2016 , a substantial portion of its debtors’ ability to honor their contracts is dependent on the economic conditions within this region. The amount of foreclosed residential real estate held at December 31, 2017 and December 31, 2016 , totaled $422,000 and $839,000 , respectively. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process at December 31, 2017 and December 31, 2016 , totaled $378,000 and $167,000 , respectively. The Company has a concentration of loans at December 31, 2017 and 2016 as follows: 2017 2016 Owners of residential rental properties 15.16 % 16.10 % Owners of commercial rental properties 13.57 % 14.18 % The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2017 and 2016 : 2017 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated Totals (In Thousands) Residential Commercial Construction Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 96 $ 367 $ 1,721 $ — $ — $ — $ 2,184 Collectively evaluated for impairment 1,081 5,312 2,556 155 1,075 495 10,674 Total ending allowance balance $ 1,177 $ 5,679 $ 4,277 $ 155 $ 1,075 $ 495 $ 12,858 Loans: Individually evaluated for impairment $ 1,268 $ 3,732 $ 9,446 $ — $ — $ 14,446 Collectively evaluated for impairment 177,617 593,345 322,573 31,683 106,678 1,231,896 Total ending loans balance $ 178,885 $ 597,077 $ 332,019 $ 31,683 $ 106,678 $ 1,246,342 2016 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 74 $ 437 $ 1,668 $ — $ — $ — $ 2,179 Collectively evaluated for impairment 1,480 4,946 3,307 178 416 390 10,717 Total ending allowance balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 Loans: Individually evaluated for impairment $ 241 $ 3,477 $ 12,258 $ — $ — $ 15,976 Collectively evaluated for impairment 145,869 561,263 293,924 34,650 43,256 1,078,962 Total ending loans balance $ 146,110 $ 564,740 $ 306,182 $ 34,650 $ 43,256 $ 1,094,938

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT	PREMISES AND EQUIPMENT Major classifications of premises and equipment are summarized as follows at December 31, 2017 and 2016 : (In Thousands) 2017 2016 Land $ 7,107 $ 6,400 Premises 20,808 18,568 Furniture and equipment 9,895 8,825 Leasehold improvements 2,311 1,698 Total 40,121 35,491 Less accumulated depreciation and amortization 12,735 11,216 Net premises and equipment $ 27,386 $ 24,275 Depreciation and amortization related to premises and equipment for the years ended 2017 , 2016 , and 2015 was $1,659,000 $1,578,000 , and $1,564,000 , respectively.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLES	GOODWILL AND OTHER INTANGIBLES As of December 31, 2017 and 2016 , goodwill had a gross carrying value of $17,380,000 and accumulated amortization of $276,000 resulting in a net carrying amount of $17,104,000 . The gross carrying amount of goodwill is tested for impairment in the third quarter of each fiscal year. Based on the fair value of the reporting unit, estimated using the expected present value of future cash flows, there was no evidence of impairment of the carrying amount at December 31, 2017 or 2016 . Identifiable intangibles are amortized to their estimated residual values over the expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. Since the acquisition, no such adjustments were recorded. The identifiable intangible assets consist of a core deposit intangible and a trade name intangible which are being amortized on an accelerated basis, and also book of business intangible that is being amortized on a straight-line basis over the useful life of such assets. The net carrying amount of the core deposit intangible, the trade name intangible, and the book of business intangible at December 31, 2017 was $598,000 , $43,000 , and $821,000 respectively, with $1,283,000 , $90,000 , and $199,000 accumulated amortization as of that date. As of December 31, 2017 , the estimated future amortization expense for the core deposit and trade name intangible was: (In Thousands) Core Deposit Intangible Trade Name Intangible Book of Business Intangible 2018 $ 185 $ 13 $ 102 2019 151 11 102 2020 117 8 102 2021 83 6 102 2022 48 4 102 2023 14 1 102 2024 — — 102 2025 — — 102 2026 — — 5 $ 598 $ 43 $ 821

TIME DEPOSITS

TIME DEPOSITS	12 Months Ended
	Dec. 31, 2017
Banking and Thrift [Abstract]
TIME DEPOSITS	TIME DEPOSITS Time deposits of $250,000 or more totaled approximately $43,262,000 on December 31, 2017 and $32,167,000 on December 31, 2016 . Interest expense on time deposits of $100,000 or more was approximately $1,479,000 , $1,305,000 , and $1,112,000 , for the years ended December 31, 2017 , 2016 , and 2015 , respectively. At December 31, 2017 , the scheduled maturities on time deposits of $100,000 or more are as follows: (In Thousands) 2017 Three months or less $ 22,164 Three months to six months 10,354 Six months to twelve months 32,660 Over twelve months 60,889 Total $ 126,067 Total time deposit maturities are as follows at December 31, 2017 : (In Thousands) 2017 2018 $ 115,659 2019 62,572 2020 22,453 2021 25,810 2022 1,546 Thereafter 1,427 Total $ 229,467

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
SHORT-TERM BORROWINGS	SHORT-TERM BORROWINGS Short-term borrowings consist of securities sold under agreements to repurchase and primarily FHLB advances, which generally represent overnight or less than six month borrowings. In addition to the outstanding balances noted below, the Banks also have additional lines of credit totaling $52,000,000 available from correspondent banks other than the FHLB. The outstanding balances and related information for short-term borrowings are summarized as follows at December 31, 2017 , 2016 , and 2015 : (In Thousands) 2017 2016 2015 Repurchase Agreements: Balance at year end $ 7,878 $ 13,241 $ 18,334 Maximum amount outstanding at any month end 13,782 17,827 18,614 Average balance outstanding during the year 10,425 15,394 15,834 Weighted-average interest rate: At year end 0.13 % 0.16 % 0.21 % Paid during the year 0.14 % 0.18 % 0.21 % Overnight: Balance at year end $ 92,870 $ — $ 28,304 Maximum amount outstanding at any month end 92,870 24,346 42,760 Average balance outstanding during the year 15,559 3,124 23,075 Weighted-average interest rate: At year end 1.54 % — % 0.43 % Paid during the year 1.41 % 0.57 % 0.36 % We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The remaining contractual maturity of repurchase agreements in the consolidated balance sheets as of December 31, 2017 and December 31, 2016 is presented in the following tables. 2017 2016 Remaining Contractual Maturity of the Agreements (In Thousands) Overnight and Continuous Overnight and Continuous Repurchase Agreements: U.S. Government and agency securities $ — $ — Mortgage-backed securities 1,898 6,684 Asset-backed securities — 109 State and political securities 6,894 5,241 Other debt securities 8,662 8,866 Total carrying value of collateral pledged $ 17,454 $ 20,900 Total liability recognized for repurchase agreements $ 7,878 $ 13,241

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
LONG-TERM BORROWINGS	LONG-TERM BORROWINGS The following represents outstanding long-term borrowings with the FHLB by contractual maturities at December 31, 2017 and 2016 : (In Thousands) Weighted Average Interest Rate Stated Interest Rate Range Description Maturity 2017 2016 From To 2017 2016 Variable 2017 — % 4.22 % 4.15 % 4.28 % $ — $ 20,000 Variable 2018 3.18 % 3.18 % 3.18 % 3.18 % 10,000 10,000 Total Variable 3.18 % 3.87 % 10,000 30,000 Fixed 2017 — % 0.91 % 0.90 % 0.97 % — 25,000 Fixed 2018 1.13 % 1.13 % 1.13 % 1.13 % 2,000 2,000 Fixed 2019 1.59 % 1.55 % 1.54 % 1.63 % 17,292 7,292 Fixed 2020 1.71 % 1.70 % 1.62 % 1.79 % 28,333 18,333 Fixed 2022 1.99 % 2.04 % 1.98 % 2.04 % 13,000 3,000 Total Fixed 1.72 % 1.32 % 60,625 55,625 Total 1.92 % 2.21 % $ 70,625 $ 85,625 (In Thousands) Year Ending December 31, Amount Weighted Average Rate 2018 $ 12,000 2.84 % 2019 17,292 1.59 % 2020 28,333 1.71 % 2022 13,000 1.99 % $ 70,625 1.92 % The terms of the convertible borrowings allow the FHLB to convert the interest rate to an adjustable rate based on the three month London Interbank Offered Rate (“LIBOR”) at a predetermined anniversary date of the borrowing’s origination, ranging from three months to five years. If the FHLB converts the interest rate on one of the predetermined dates, the Bank has the ability to pay off the debt on the conversion date and quarterly thereafter without incurring the customary pre-payment penalty. The Banks maintain a credit arrangement which includes a revolving line of credit with the FHLB. Under this credit arrangement, at December 31, 2017 , JSSB has a remaining borrowing capacity of $235,868,000 and Luzerne has a remaining capacity of $157,292,000 , which are subject to annual renewal and typically incur no service charges. Under terms of a blanket agreement, collateral for the FHLB borrowings must be secured by certain qualifying assets of each Bank which consist principally of first mortgage loans and state and political securities, along with other securities. In December 2012, JSSB entered in to a capital lease on a piece of land in Lewisburg, Pennsylvania. The carrying amount of the land as of December 31, 2017 and 2016 was $827,000 . The present value of minimum lease payments at December 31, 2017 and 2016 was $345,000 and $373,000 . The following is a schedule showing the future minimum lease payments under the capital lease by years and the present value of the minimum lease payments as of December 31, 2017. The interest rate related to the lease obligation is 2.75% and the maturity date is October 2023. (In Thousands) Lease Payment Interest Present Value of Minimum Lease Payment 2018 $ 38 $ 9 $ 29 2019 38 9 29 2020 38 8 30 2021 38 7 31 2022 37 6 31 Thereafter 200 5 195 $ 389 $ 44 $ 345

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Year-end deferred taxes are presented in the table below. As a result of the Tax Cuts and Jobs Act enacted on December 22, 2017 (discussed below), deferred taxes as of December 31, 2017 are based on the newly enacted U.S. statutory federal income tax rate of 21%. Deferred taxes as of December 31, 2016 are based on the previously enacted U.S. statutory federal income tax rate of 34%. The following temporary differences gave rise to the net deferred tax asset position at December 31, 2017 and 2016 : (In Thousands) 2017 2016 Deferred tax assets: Allowance for loan losses $ 2,714 $ 4,400 Deferred compensation 1,235 1,840 Defined Pension 684 1,450 Deferred Loan fees and discounts 211 320 Investment securities allowance 45 517 Unrealized loss on available for sale securities 14 329 Other 727 1,393 Total 5,630 10,249 Deferred tax liabilities: Investment security accretion 95 244 Depreciation 537 588 Amortization 610 1,020 Total 1,242 1,852 Deferred tax asset, net $ 4,388 $ 8,397 No valuation allowance was established at December 31, 2017 and 2016 , because of the Company’s ability to carry back capital losses to recover taxes paid in previous years and certain tax strategies, together with the anticipated future taxable income as evidenced by the Company’s earning potential. The Corporation is no longer subject to federal, state, and local examinations by tax authorities for years before 2014. The provision or benefit for income taxes is comprised of the following for the year ended December 31, 2017 , 2016 , and 2015 : (In Thousands) 2017 2016 2015 Currently payable $ 5,690 $ 3,054 $ 3,527 Deferred benefit (955 ) 1,543 209 Change in corporate tax rate 2,724 — — Total provision $ 7,459 $ 4,597 $ 3,736 A reconciliation between the expected income tax or benefit and the effective income tax rate on income before income tax provision or benefit follows for the year ended December 31, 2017 , 2016 , and 2015 : 2017 2016 2015 (In Thousands) Amount % Amount % Amount % Provision at expected rate $ 5,859 34.00 % $ 5,804 34.00 % $ 5,996 34.00 % (Decrease) increase in tax resulting from: Tax-exempt income (811 ) (4.71 ) (1,092 ) (6.40 ) (1,492 ) (8.46 ) Tax credits (177 ) (1.03 ) (312 ) (1.83 ) (737 ) (4.17 ) Change in corporate tax rate 2,724 15.81 — — — — Other, net (136 ) (0.78 ) 197 1.16 (31 ) (0.18 ) Effective income tax provision and rate $ 7,459 43.29 % $ 4,597 26.93 % $ 3,736 21.19 %

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2017
Defined Benefit Plan [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plan The Company has a noncontributory defined benefit pension plan (the “Plan”) for all employees meeting certain age and length of service requirements that were hired prior to January 1, 2004, at which time entrance into the Plan was frozen. The benefit accrual for the Plan was subsequently frozen at December 31, 2014. Benefits are based primarily on years of service and the average annual compensation during the highest five consecutive years within the final ten years of employment, until December 31, 2014 when the benefit accrual was frozen. The following table sets forth the obligation and funded status as of December 31, 2017 and 2016 : (In Thousands) 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 19,289 $ 18,947 Interest cost 756 775 Actuarial loss (gain) 159 139 Benefits paid (782 ) (800 ) Curtailment gain — — Other, change in actuarial assumptions 1,247 228 Benefit obligation at end of year $ 20,669 $ 19,289 Change in plan assets: Fair value of plan assets at beginning of year $ 15,090 $ 14,223 Actual return on plan assets 2,424 910 Employer contribution 750 750 Benefits paid (782 ) (797 ) Adjustment to fair value of plan assets 4 4 Fair value of plan assets at end of year 17,486 15,090 Funded status $ (3,183 ) $ (4,199 ) Accounts recognized on balance sheet as: Total liabilities $ (3,183 ) $ (4,199 ) Amounts not yet recognized as a component of net periodic pension cost: Amounts recognized in accumulated other comprehensive income (loss) consist of: Net loss $ 6,227 $ 6,498 The accumulated benefit obligation for the Plan was $20,669,000 and $19,289,000 at December 31, 2017 and 2016 , respectively. Components of Net Periodic Cost and Other Amounts Recognized in Other Comprehensive Income (loss) as of December 31, 2017 , 2016 , and 2015 are as follows: (In Thousands) 2017 2016 2015 Net periodic pension cost: Service cost $ — $ 55 $ 64 Interest cost 756 775 757 Expected return on plan assets (926 ) (989 ) (983 ) Amortization of unrecognized net loss 174 153 159 Net periodic benefit (cost) $ 4 $ (6 ) $ (3 ) Assumptions Weighted-average assumptions used to determine benefit obligations at December 31, 2017 , 2016 , and 2015 : 2017 2016 2015 Discount rate 3.47 % 3.98 % 4.17 % Rate of compensation increase N/A N/A N/A Weighted-average assumptions used to determine net periodic cost for years ended December 31, 2017 , 2016 , and 2015 : 2017 2016 2015 Discount rate 3.98 % 4.17 % 3.83 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % The expected long-term rate of return was estimated using market benchmarks by which the plan assets would outperform the market value in the future, based on historical experience adjusted for changes in asset allocation and expectations for overall lower future returns on similar investments compared to past periods. Plan Assets The Plan’s weighted-average asset allocations at December 31, 2017 and 2016 by asset category are as follows: Asset Category 2017 2016 Cash 4.96 % 6.54 % Fixed income securities 11.42 % 9.15 % Equity 66.90 % 64.79 % Inflation Hedges/Real Assets 5.82 % 5.55 % Hedged Strategies 10.90 % 13.97 % Total 100.00 % 100.00 % The investment objective for the Plan is to maximize total return with tolerance for slightly above average risk, meaning the fund is able to tolerate short-term volatility to achieve above-average returns over the long term. Asset allocation favors equities, with target allocation of approximately 62% equity securities, 15.0% fixed income securities, 10% inflation hedges/real assets, 10% hedged strategies, and 2.5% cash. Due to volatility in the market, the target allocation is not always desirable and asset allocations will fluctuate between the acceptable ranges. The equity portfolio’s exposure is primarily in mid and large capitalization domestic equities with limited exposure to small capitalization and international stocks. It is management’s intent to give the investment managers flexibility, within the overall guidelines, with respect to investment decisions and their timing. However, certain investments require specific review and approval by management. Management is also informed of anticipated, significant modifications of any previously approved investment, or anticipated use of derivatives to execute investment strategies. The following table sets forth by level, within the fair value hierarchy detailed in Note 21 - Fair Value Measurements, the Plan’s assets at fair value as of December 31, 2017 and 2016 : 2017 (In Thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 868 $ — $ — $ 868 Mutual funds - taxable fixed income 1,992 — — 1,992 Mutual funds - domestic equity 9,358 — — 9,358 Mutual funds - international equity 2,343 — — 2,343 Inflation Hedges/Real Assets 1,019 — — 1,019 Hedged Strategies 1,906 — — 1,906 Total assets at fair value $ 17,486 $ — $ — $ 17,486 2016 (In Thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 987 $ — $ — $ 987 Mutual funds - taxable fixed income 1,379 — — 1,379 Mutual funds - domestic equity 8,944 — — 8,944 Mutual funds - international equity 835 — — 835 Inflation Hedges/Real Assets 838 — — 838 Hedged Strategies 2,107 — — 2,107 Total assets at fair value $ 15,090 $ — $ — $ 15,090 The following future benefit payments are expected to be paid: (In Thousands) 2018 $ 838 2019 874 2020 907 2021 898 2022 918 Thereafter 5,249 $ 9,684 The company expects to contribute a minimum of $500,000 to its Pension Plan in 2018 . 401(k) Savings Plan The Company also offers a 401(k) savings plan in which eligible participating employees may elect to contribute up to a maximum percentage allowable not to exceed the limits of Code Sections 401(k), 404, and 415. The Company may make matching contributions equal to a discretionary percentage that is determined by the Board of Directors. Participants are at all times fully vested in their contributions and vest over a period of five years regarding the employer contribution. Contribution expense was approximately $369,000 , $215,000 , and $230,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Deferred Compensation Plan The Company has a deferred compensation plan whereby participating directors elect to forego directors’ fees paid in cash. Under this plan, the Company will make payments for a ten -year period beginning at the later of age 65 or ceasing to be a director in most cases or at death, if earlier, at which time payments would be made to their designated beneficiaries. To fund benefits under the deferred compensation plan, the Company has acquired bank-owned life insurance policies on the lives of the participating directors for which insurance benefits are payable to the Company. The Company incurred expenses related to the plan of $330,000 , $303,000 , and $252,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Benefits paid under the plan were approximately $79,000 , $85,000 , and $103,000 in 2017 , 2016 , and 2015 , respectively.

STOCK OPTIONS

STOCK OPTIONS	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	STOCK OPTIONS In 2014, the Company adopted the 2014 Equity Incentive Plan designed to help the Company attract, retain, and motivate employees and non-employee directors. Incentive stock options, non-qualified stock options, and restricted stock may be granted as part of the plan. On August 27, 2015, the Company issued 38,750 stock options with a strike price of $42.03 to employees that have a five year vesting period and expire ten years from the grant date. On March 24, 2017, the Company issued 70,000 stock options with a strike price of $44.21 to employees. The options granted in 2017 all expire ten years from the grant date; however, of the 70,000 grants awarded, 46,250 of the options have a three year vesting period while the remaining 23,750 options vest in five years. A summary of stock option activity for the year ended December 31, 2017 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2014 — $ — — $ — Granted 38,750 42.03 9.67 Exercised — — Forfeited (4,000 ) 42.03 Expired — — Outstanding at December 31, 2015 34,750 42.03 9.67 14,943 Granted — — Exercised — — Forfeited (8,250 ) 42.03 Expired — — Outstanding at December 31, 2016 26,500 42.03 8.66 224,455 Granted 70,000 44.21 9.23 Exercised — — Forfeited (3,000 ) 44.21 Expired — — Outstanding at December 31, 2017 93,500 $ 43.59 8.79 $ 279,365 Options exercisable at December 31, 2017 — $ — — $ — On December 31, 2017 , a total of 93,500 options were outstanding. Outstanding options at December 31, 2017 and the related vesting schedules are summarized below: Stock Options Granted Date Shares Forfeited Outstanding Strike Price Vesting Period Expiration March 24, 2017 46,250 (3,000 ) 43,250 $ 44.21 3 years 10 years March 24, 2017 23,750 — 23,750 44.21 5 years 10 years August 27, 2015 38,750 (12,250 ) 26,500 42.03 5 years 10 years The fair value of stock options is estimated using the Black-Scholes option pricing model. The following is a summary of the assumptions used in this model for the stock options granted during 2017 and 2015 (no options were issued during 2016): 2017 2015 Risk-free interest rate 1.90 % 1.63 % Expected volatility 27.63 % 31.58 % Expected dividend yield 4.20 % 4.22 % Expected life 6.84 years 7.51 years Weighted average grant date fair value per option $ 0.75 $ 3.96 The estimated fair value of options, including the effect of estimated forfeitures, is recognized as expense on a straightline basis over the options’ vesting periods while ensuring that the cumulative amount of compensation cost recognized at least equals the value of the vested portion of the award at that date. The Company determines the fair value of options granted using the Black-Scholes option-pricing model. The risk-free interest rate is based on the United States Treasury bond with a similar term to the expected life of the options at the grant date. Expected volatility was estimated based on the adjusted historic volatility of the Company’s shares. The expected life was estimated to equal the contractual life of the options. The dividend yield rate was based upon recent historical dividends paid on shares. For the years ended December 31, 2017 and 2016 , there was $29,000 and $19,000 in total share-based compensation expense, respectively. The compensation expense is recorded as part of the non-interest expenses in the Consolidated Statement of Income. As at December 31, 2017 , total unrecognized compensation costs related to non-vested options was $99,000 which is expected to be recognized over a period of 2.91 years.

EMPLOYEE STOCK PURCHASE PLAN

EMPLOYEE STOCK PURCHASE PLAN	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
EMPLOYEE STOCK PURCHASE PLAN	EMPLOYEE STOCK PURCHASE PLAN The Company maintains a Penns Woods Bancorp, Inc. Employee Stock Purchase Plan (“Plan”). The Plan is intended to encourage employee participation in the ownership and economic progress of the Company. The Plan allows for up to 1,000,000 shares to be purchased by employees. The purchase price of the shares is 95% of market value with an employee eligible to purchase up to the lesser of 15% of base compensation or $12,000 in market value annually. There were 2,230 and 2,125 shares issued under the plan for the years ended December 31, 2017 and 2016 , respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Certain directors and executive officers of the Company and the Banks, including their immediate families and companies in which they are principal owners (more than ten percent), are indebted to the Company. Such indebtedness was incurred in the ordinary course of business on the same terms and at those rates prevailing at the time for comparable transactions with others. A summary of loan activity with executive officers, directors, principal shareholders, and associates of such persons is listed below for the years ended December 31, 2017 and 2016 : (In Thousands) Beginning Balance New Loans Repayments Ending Balance 2016 $ 9,258 $ 5,875 $ (6,256 ) $ 8,877 2017 8,877 13,147 (3,013 ) 19,011 Deposits from related parties held by the Banks amounted to $21,700,000 at December 31, 2017 and $13,052,000 at December 31, 2016 .

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	COMMITMENTS AND CONTINGENT LIABILITIES The following schedule shows future minimum rental payments under operating leases with noncancellable terms in excess of one year as of December 31, 2017 : (In Thousands) 2018 $ 599 2019 480 2020 463 2021 369 2022 261 Thereafter 1,246 $ 3,418 The Company’s operating lease obligations represent short and long-term lease and rental payments for facilities and equipment. Total rental expense for all operating leases for the years ended December 31, 2017 , 2016 , and 2015 were $584,000 , $573,000 , and $591,000 . The Company is subject to lawsuits and claims arising out of its business. There are no such legal proceedings or claims currently pending or threatened other than those encountered during the normal course of business.

OFF-BALANCE SHEET RISK

OFF-BALANCE SHEET RISK	12 Months Ended
	Dec. 31, 2017
Off Balance Sheet Risk
OFF-BALANCE SHEET RISK	OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit, interest rate, or liquidity risk in excess of the amount recognized in the Consolidated Balance Sheet. The contract amounts of these instruments express the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company may require collateral or other security to support financial instruments with off-balance sheet credit risk. Financial instruments whose contract amounts represent credit risk are as follows at December 31, 2017 and 2016 : (In Thousands) 2017 2016 Commitments to extend credit $ 264,982 $ 263,487 Standby letters of credit 10,406 6,515 Credit exposure from the sale of assets with recourse 4,893 6,341 Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, on an extension of credit is based on management’s credit assessment of the counterparty. Standby letters of credit represent conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance related contracts. The coverage period for these instruments is typically a one year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized upon expiration of the coverage period. For secured letters of credit, the collateral is typically Bank deposit instruments or customer business assets.

CAPITAL REQUIREMENTS

CAPITAL REQUIREMENTS	12 Months Ended
	Dec. 31, 2017
Banking and Thrift [Abstract]
CAPITAL REQUIREMENTS	CAPITAL REQUIREMENTS Federal regulations require the Company and the Banks to maintain minimum amounts of capital. Specifically, each is required to maintain certain minimum dollar amounts and ratios of Common Equity Tier 1, Total, and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average total assets. In addition to the capital requirements, the Federal Deposit Insurance Corporation Improvement Act (“FDICIA”) established five capital categories ranging from “well capitalized” to “critically undercapitalized.” Should any institution fail to meet the requirements to be considered “adequately capitalized,” it would become subject to a series of increasingly restrictive regulatory actions. As of December 31, 2017 and 2016 , the FDIC categorized the Banks as well capitalized under the regulatory framework for prompt corrective action. To be classified as a well capitalized financial institution, common equity tier I risk-based, tier I risked-based, total risk-based, and tier I leverage capital ratios must be at least 6.5% , 8% , 10% , and 5% , respectively. The Company’s and the Banks' actual capital ratios (using the definitions from the prompt corrective action rules) are presented in the following tables, which shows that the Company and both Banks met all regulatory capital requirements. Consolidated Company 2017 2016 (In Thousands) Amount Ratio Amount Ratio Common Equity Tier I Capital (to Risk-weighted Assets) Actual $ 125,513 11.254 % $ 125,804 12.620 % For Capital Adequacy Purposes 50,187 4.500 % 44,849 4.500 % Minimum To Maintain Capital Conservation Buffer 64,128 5.750 % 51,078 5.125 % To Be Well Capitalized 72,493 6.500 % 64,782 6.500 % Total Capital (to Risk-weighted Assets) Actual $ 132,094 11.844 % $ 133,393 13.380 % For Capital Adequacy Purposes 89,223 8.000 % 79,732 8.000 % Minimum To Maintain Capital Conservation Buffer 103,164 9.250 % 85,961 8.625 % To Be Well Capitalized 111,528 10.000 % 99,665 10.000 % Tier I Capital (to Risk-weighted Assets) Actual $ 125,513 11.254 % $ 125,804 12.620 % For Capital Adequacy Purposes 66,916 6.000 % 59,799 6.000 % Minimum To Maintain Capital Conservation Buffer 80,857 7.250 % 66,028 6.625 % To Be Well Capitalized 89,222 8.000 % 79,732 8.000 % Tier I Capital (to Average Assets) Actual $ 125,513 8.766 % $ 125,804 9.432 % For Capital Adequacy Purposes 57,273 4.000 % 53,352 4.000 % To Be Well Capitalized 71,591 5.000 % 66,691 5.000 % Jersey Shore State Bank 2017 2016 (In Thousands) Amount Ratio Amount Ratio Common Equity Tier I Capital (to Risk-weighted Assets) Actual $ 88,289 10.120 % $ 86,397 11.136 % For Capital Adequacy Purposes 39,259 4.500 % 34,914 4.500 % Minimum To Maintain Capital Conservation Buffer 50,164 5.750 % 39,763 5.125 % To Be Well Capitalized 56,707 6.500 % 50,431 6.500 % Total Capital (to Risk-weighted Assets) Actual $ 93,145 10.677 % $ 90,992 11.728 % For Capital Adequacy Purposes 69,791 8.000 % 62,069 8.000 % Minimum To Maintain Capital Conservation Buffer 80,696 9.250 % 66,918 8.625 % To Be Well Capitalized 87,239 10.000 % 77,587 10.000 % Tier I Capital (to Risk-weighted Assets) Actual $ 88,289 10.120 % $ 86,397 11.136 % For Capital Adequacy Purposes 52,345 6.000 % 46,552 6.000 % Minimum To Maintain Capital Conservation Buffer 63,251 7.250 % 51,401 6.625 % To Be Well Capitalized 69,794 8.000 % 62,069 8.000 % Tier I Capital (to Average Assets) Actual $ 88,289 8.235 % $ 86,397 8.894 % For Capital Adequacy Purposes 42,885 4.000 % 38,856 4.000 % To Be Well Capitalized 53,606 5.000 % 48,570 5.000 % Luzerne Bank 2017 2016 (In Thousands) Amount Ratio Amount Ratio Common Equity Tier I Capital (to Risk-weighted Assets) Actual $ 31,116 9.731 % $ 31,102 10.165 % For Capital Adequacy Purposes 14,389 4.500 % 13,769 4.500 % Minimum To Maintain Capital Conservation Buffer 18,386 5.750 % 15,682 5.125 % To Be Well Capitalized 20,785 6.500 % 19,889 6.500 % Total Capital (to Risk-weighted Assets) Actual $ 32,533 10.174 % $ 33,589 10.977 % For Capital Adequacy Purposes 25,581 8.000 % 24,479 8.000 % Minimum To Maintain Capital Conservation Buffer 29,578 9.250 % 26,391 8.625 % To Be Well Capitalized 31,977 10.000 % 30,599 10.000 % Tier I Capital (to Risk-weighted Assets) Actual $ 31,116 9.731 % $ 31,102 10.165 % For Capital Adequacy Purposes 19,186 6.000 % 18,359 6.000 % Minimum To Maintain Capital Conservation Buffer 23,183 7.250 % 20,272 6.625 % To Be Well Capitalized 25,581 8.000 % 24,479 8.000 % Tier I Capital (to Average Assets) Actual $ 31,116 8.384 % $ 31,102 8.535 % For Capital Adequacy Purposes 14,845 4.000 % 14,576 4.000 % To Be Well Capitalized 18,557 5.000 % 18,220 5.000 %

REGULATORY RESTRICTIONS

REGULATORY RESTRICTIONS	12 Months Ended
	Dec. 31, 2017
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract]
REGULATORY RESTRICTIONS	REGULATORY RESTRICTIONS The Pennsylvania Banking Code restricts the availability of capital funds for payment of dividends by all state-chartered banks. Accordingly, at December 31, 2017 , the balance in the additional paid in capital account totaling $11,657,000 for JSSB and $42,214,000 for Luzerne Bank is unavailable for dividends. The Banks are subject to regulatory restrictions, which limit the ability to loan funds to Penns Woods Bancorp, Inc. At December 31, 2017 , the regulatory lending limit amounted to approximately $16,914,000 . Cash and Due from Banks Jersey Shore State Bank and Luzerne Bank had no reserve requirements by the district Federal Reserve Bank at December 31, 2017 or 2016 ; however, if they did they would be reported with cash and due from banks. The required reserves are computed by applying prescribed ratios to the classes of average deposit balances. These are held in the form of cash on hand and a balance maintained directly with the Federal Reserve Bank.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad levels of pricing observations are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. The following table presents the assets reported on the balance sheet at their fair value on a recurring basis as of December 31, 2017 and 2016 , by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. 2017 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 4,213 $ — $ 4,213 State and political securities — 56,508 — 56,508 Other debt securities — 47,907 — 47,907 Financial institution equity securities 14,596 — — 14,596 Other equity securities 1,251 — — 1,251 Investment securities, trading: Other equity securities 190 — — 190 Total assets measured on a recurring basis $ 16,037 $ 108,628 $ — $ 124,665 2016 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 9,313 $ — $ 9,313 Asset-backed securities — 109 — 109 State and political securities — 60,934 — 60,934 Other debt securities — 51,118 — 51,118 Financial institution equity securities 10,535 — — 10,535 Other equity securities 1,483 — — 1,483 Investment securities, trading: Financial institution equity securities 58 — — 58 Total assets measured on a recurring basis $ 12,076 $ 121,474 $ — $ 133,550 The following table presents the assets reported on the balance sheet at their fair value on a non-recurring basis as of December 31, 2017 and 2016 , by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. 2017 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 12,262 $ 12,262 Other real estate owned — — 143 143 2016 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 13,797 $ 13,797 Other real estate owned — — 839 839 The following table provides a listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques as of December 31, 2017 and 2016 : 2017 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 6,583 Discounted cash flow Temporary reduction in payment amount 3% to (70)% (4)% Probability of default —% 5,679 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (17)% Other real estate owned $ 143 Appraisal of collateral (1) Appraisal adjustments (1) (20)% (20)% 2016 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,304 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (20)% Probability of default —% 8,493 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (15)% Other real estate owned $ 839 Appraisal of collateral (1) Appraisal adjustments (1) (20)% (20)% (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The significant unobservable inputs used in the fair value measurement of the Company’s impaired loans using the discounted cash flow valuation technique include temporary changes in payment amounts and the probability of default. Significant increases (decreases) in payment amounts would result in significantly higher (lower) fair value measurements. The probability of default is 0% for impaired loans using the discounted cash flow valuation technique because all defaulted impaired loans are valued using the appraisal of collateral valuation technique. The significant unobservable input used in the fair value measurement of the Company’s impaired loans using the appraisal of collateral valuation technique include appraisal adjustments, which are adjustments to appraisals by management for qualitative factors such as economic conditions and estimated liquidation expenses. The significant unobservable input used in the fair value measurement of the Company’s other real estate owned are the same inputs used to value impaired loans using the appraisal of collateral valuation technique.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The Company is required to disclose fair values for its financial instruments. Fair values are made at a specific point in time, based on relevant market information and information about the financial instrument. These fair values do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Also, it is the Company’s general practice and intention to hold most of its financial instruments to maturity and not to engage in trading or sales activities. Because no market exists for a significant portion of the Company’s financial instruments, fair values are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These fair values are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions can significantly affect the fair values. Fair values have been determined by the Company using historical data and an estimation methodology suitable for each category of financial instruments. The Company’s fair values, methods, and assumptions are set forth below for the Company’s other financial instruments. As certain assets and liabilities, such as deferred tax assets, premises and equipment, and many other operational elements of the Company, are not considered financial instruments but have value, the fair value of financial instruments would not represent the full market value of the Company. The fair values of the Company’s financial instruments are as follows at December 31, 2017 and 2016 : Fair Value Measurements at December 31, 2017 (In Thousands) Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Financial assets: Cash and cash equivalents $ 27,243 $ 27,243 $ 27,243 $ — $ — Investment securities: Available for sale 124,475 124,475 15,847 108,628 — Trading 190 190 190 — — Loans held for sale 1,196 1,196 1,196 — — Loans, net 1,233,756 1,264,584 — — 1,264,584 Bank-owned life insurance 27,982 27,982 27,982 — — Accrued interest receivable 4,321 4,321 4,321 — — Financial liabilities: Interest-bearing deposits $ 843,004 $ 838,441 $ 611,187 $ — $ 227,254 Noninterest-bearing deposits 303,316 303,316 303,316 — — Short-term borrowings 100,748 100,748 100,748 — — Long-term borrowings 70,970 70,280 — — 70,280 Accrued interest payable 502 502 502 — — Fair Value Measurements at December 31, 2016 (In Thousands) Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Financial assets: Cash and cash equivalents $ 43,671 $ 43,671 $ 43,671 $ — $ — Investment securities: Available for sale 133,492 133,492 12,018 121,474 — Trading 58 58 58 Loans held for sale 1,953 1,953 1,953 — — Loans, net 1,080,785 1,088,122 — — 1,088,122 Bank-owned life insurance 27,332 27,332 27,332 — — Accrued interest receivable 3,672 3,672 3,672 — — Financial liabilities: Interest-bearing deposits $ 791,937 $ 789,401 $ 571,768 $ — $ 217,633 Noninterest-bearing deposits 303,277 303,277 303,277 — — Short-term borrowings 13,241 13,241 13,241 — — Long-term borrowings 85,998 86,353 — — 86,353 Accrued interest payable 455 455 455 — — Cash and Cash Equivalents, Trading Securities, Loans Held for Sale, Accrued Interest Receivable, Short-term Borrowings, and Accrued Interest Payable: The fair value is equal to the carrying value. Investment Securities: The fair value of investment securities available for sale is equal to the available quoted market price. If no quoted market price is available, fair value is determined by using the quoted market price for similar securities. Regulatory stocks’ fair value is equal to the carrying value. Loans: Fair values are determined for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, commercial real estate, residential real estate, construction real estate, and other consumer. Each loan category is further segmented into fixed and adjustable rate interest terms and by performing and nonperforming categories. The fair value of performing loans is calculated by discounting scheduled cash flows through the estimated maturity using market discount rates that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Company’s historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic and lending conditions. Fair value for significant nonperforming loans is based on recent external appraisals. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discounted rates are judgmentally determined using available market information and specific borrower information. Bank-Owned Life Insurance: The fair value is equal to the cash surrender value of the life insurance policies. Deposits: The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, NOW, and money market accounts, is equal to the amount payable on demand as of December 31, 2017 and 2016 . The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The fair values above do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market, commonly referred to as the core deposit intangible. Long Term Borrowings: The fair value of long term borrowings is based on the discounted value of contractual cash flows. Commitments to Extend Credit, Standby Letters of Credit, and Financial Guarantees Written: There is no material difference between the notional amount and the fair value of off-balance sheet items at December 31, 2017 and 2016 . The contractual amounts of unfunded commitments and letters of credit are presented in Note 18.

PARENT COMPANY ONLY FINANCIAL S

PARENT COMPANY ONLY FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
PARENT COMPANY ONLY FINANCIAL STATEMENTS	PARENT COMPANY ONLY FINANCIAL STATEMENTS Condensed financial information for Penns Woods Bancorp, Inc. follows: CONDENSED BALANCE SHEET, DECEMBER 31, (In Thousands) 2017 2016 ASSETS: Cash $ 132 $ 578 Investment in subsidiaries: Bank 131,637 129,421 Non-bank 5,685 8,037 Other assets 889 373 Total Assets $ 138,343 $ 138,409 LIABILITIES AND SHAREHOLDERS’ EQUITY: Other liabilities $ 149 $ 160 Shareholders’ equity 138,194 138,249 Total liability and shareholders’ equity $ 138,343 $ 138,409 CONDENSED STATEMENT OF INCOME FOR THE YEARS ENDED DECEMBER 31, (In Thousands) 2017 2016 2015 Operating income: Dividends from subsidiaries $ 11,352 $ 10,007 $ 11,367 Equity in undistributed earnings of subsidiaries (908 ) 3,128 3,167 Operating expenses (671 ) (660 ) (636 ) Net income $ 9,773 $ 12,475 $ 13,898 Comprehensive income $ 10,545 $ 11,346 $ 11,766 CONDENSED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, (In Thousands) 2017 2016 2015 OPERATING ACTIVITIES: Net income $ 9,773 $ 12,475 $ 13,898 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries 908 (3,128 ) (3,167 ) Other, net (525 ) 344 (313 ) Net cash provided by operating activities 10,156 9,691 10,418 FINANCING ACTIVITIES: Dividends paid (8,837 ) (8,903 ) (8,967 ) Issuance of common stock 116 101 116 Purchase of treasury stock (1,881 ) (574 ) (2,603 ) Net cash used for financing activities (10,602 ) (9,376 ) (11,454 ) NET (DECREASE) INCREASE IN CASH (446 ) 315 (1,036 ) CASH, BEGINNING OF YEAR 578 263 1,299 CASH, END OF YEAR $ 132 $ 578 $ 263

CONSOLIDATED QUARTERLY FINANCIA

CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED)	CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (In Thousands, Except Per Share Data) For the Three Months Ended 2017 March 31, June 30, Sept. 30, Dec. 31, Interest income $ 11,682 $ 12,209 $ 12,948 $ 13,138 Interest expense 1,346 1,385 1,496 1,670 Net interest income 10,336 10,824 11,452 11,468 Provision for loan losses 330 215 60 125 Non-interest income, excluding securities gains 2,452 2,775 2,442 2,483 Securities gains (losses), net 199 (12 ) 298 107 Non-interest expense 8,985 9,063 9,566 9,248 Income before income tax provision 3,672 4,309 4,566 4,685 Income tax provision 986 1,223 1,282 3,968 Net income $ 2,686 $ 3,086 $ 3,284 $ 717 Earnings per share - basic $ 0.57 $ 0.65 $ 0.70 $ 0.16 Earnings per share - diluted $ 0.56 $ 0.65 $ 0.70 $ 0.15 (In Thousands, Except Per Share Data) For the Three Months Ended 2016 March 31, June 30, Sept. 30, Dec. 31, Interest income $ 11,726 $ 11,669 $ 11,660 $ 11,758 Interest expense 1,352 1,381 1,413 1,421 Net interest income 10,374 10,288 10,247 10,337 Provision for loan losses 350 258 258 330 Non-interest income, excluding securities gains 2,522 2,686 2,821 2,415 Securities gains, net 475 492 261 441 Non-interest expense 9,061 8,666 8,739 8,625 Income before income tax provision 3,960 4,542 4,332 4,238 Income tax provision 882 1,152 1,273 1,290 Net income $ 3,078 $ 3,390 $ 3,059 $ 2,948 Earnings per share - basic and diluted $ 0.65 $ 0.72 $ 0.65 $ 0.62

OPERATIONS AND SUMMARY OF SIG33

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Penns Woods Bancorp, Inc. and its wholly owned subsidiaries, Jersey Shore State Bank (“JSSB”), Luzerne Bank ("Luzerne" and collectively with JSSB , the "Banks"), Woods Real Estate Development Co., Inc., Woods Investment Company, Inc., The M Group Inc. D/B/A The Comprehensive Financial Group (“The M Group”), a wholly owned subsidiary of JSSB and an eighty percent owned partnership, United Solutions, LLC, (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of net deferred tax assets, impairment of goodwill, other than temporary impairment of debt and equity securities, fair value of financial instruments, and the valuation of real estate acquired through, or in lieu of, foreclosure on settlement of debt.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand and in banks and federal funds sold. Interest-earning deposits mature within 90 days and are carried at cost. Net cash flows are reported for loan, deposit, and short-term borrowing transactions.
Restrictions on Cash and Cash Equivalents	Restrictions on Cash and Cash Equivalents Based on deposit levels, the Banks must maintain cash and other reserves with the Federal Reserve Bank of Philadelphia ("FRB").
Investment Securities	Investment Securities Investment securities are classified at the time of purchase, based on management’s intention and ability, as securities held to maturity, securities available for sale, or securities held for trading. Debt securities acquired with the intent and ability to hold to maturity are stated at cost, adjusted for amortization of premium and accretion of discount, which are computed using the interest method and recognized as adjustments of interest income. Certain other debt securities have been classified as available for sale to serve principally as a source of liquidity. Unrealized holding gains and losses for available for sale securities are reported as a separate component of shareholders’ equity, net of tax, until realized. Unrealized holding gains and losses for equity securities held for trading are recognized as a separate component within the income statement. Realized security gains and losses are computed using the specific identification method for debt securities and the average cost method for marketable equity securities. Interest and dividends on investment securities are recognized as income when earned. Securities are periodically reviewed for other-than-temporary impairment based upon a number of factors, including, but not limited to, the length of time and extent to which the fair value has been less than cost, the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the likelihood of the security’s ability to recover any decline in its fair value, whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in fair value, and a review of the Company’s capital adequacy, interest rate risk position, and liquidity. The assessment of a security’s ability to recover any decline in fair value, the ability of the issuer to meet contractual obligations, and management’s intent and ability requires considerable judgment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statement of Income. Fair values of investment securities are based on observed market prices. Certain investment securities do not have observed bid prices and their fair value is based on instruments with similar risk elements. Since regulatory stock is redeemable at par, the Company carries it at cost.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are stated at the principal amount outstanding, net of deferred fees and discounts, unamortized loan fees and costs, and the allowance for loan losses. Interest on loans is recognized as income when earned on the accrual method. The Company’s general policy has been to stop accruing interest on loans when it is determined a reasonable doubt exists as to the collectability of additional interest. Income is subsequently recognized only to the extent that cash payments are received provided the loan is not delinquent in payment and, in management’s judgment, the borrower has the ability and intent to make future principal payments. Otherwise, payments are applied to the unpaid principal balance of the loan. Loans are restored to accrual status if certain conditions are met, including but not limited to, the repayment of all unpaid interest and scheduled principal due, ongoing performance consistent with the contractual agreement, and the future expectation of continued, timely payments. Loan origination and commitment fees as well as certain direct loan origination costs are being deferred and amortized as an adjustment to the related loan’s yield over the contractual lives of the related loans.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio as of the Consolidated Balance Sheet date. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses charged to operations. The provision for loan losses is based upon management’s quarterly review of the loan portfolio. The purpose of the review is to assess loan quality, identify impaired loans, analyze delinquencies, ascertain loan growth, evaluate potential charge-offs and recoveries, and assess general economic conditions in the markets served. An external independent loan review is also performed annually for the Bank. Management remains committed to an aggressive program of problem loan identification and resolution. The allowance is calculated by applying loss factors to outstanding loans by type, excluding loans for which a specific allowance has been determined. Loss factors are based on management’s consideration of the nature of the portfolio segments, changes in mix and volume of the loan portfolio, historical loan loss experience, and general economic conditions. In addition, management considers industry standards and trends with respect to nonperforming loans and its knowledge and experience with specific lending segments. Although management believes that it uses the best information available to make such determinations and that the allowance for loan losses is adequate at December 31, 2017, future adjustments could be necessary if circumstances or economic conditions differ substantially from the assumptions used in making the initial determinations. A downturn in the local economy, rising unemployment, or negative performance trends in financial information from borrowers could be indicators of subsequent increased levels of nonperforming assets and possible charge-offs, which would normally require increased loan loss provisions. An integral part of the periodic regulatory examination process is the review of the adequacy of the Banks' loan loss allowance. The regulatory agencies could require the Banks, based on their evaluation of information available at the time of their examination, to provide additional loan loss provisions to further supplement the allowance. Impaired loans are commercial and commercial real estate loans for which it is probable the Banks will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Banks individually evaluate such loans for impairment and do not aggregate loans by major risk classifications. The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Banks may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial or commercial real estate loan. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral. Mortgage loans on one-to-four family properties and all consumer loans are large groups of smaller-balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed.
Loan Charge-off Policies	Loan Charge-off Policies Loans are generally fully or partially charged down to the fair value of collateral securing the asset when: • management judges the asset to be uncollectible; • repayment is deemed to be protracted beyond reasonable time frames; • the asset has been classified as a loss by either the internal loan review process or external examiners; • the borrower has filed bankruptcy and the loss becomes evident due to a lack of assets; or • the loan is 180 days past due unless both well secured and in the process of collection.
Troubled Debt Restructurings	Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a troubled debt restructuring ("TDR"). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate allowance for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.
Loans Held for Sale	Loans Held for Sale In general, fixed rate residential mortgage loans originated by the Banks are held for sale and are carried at cost due to their short holding period, which can range from less than two weeks to a maximum of thirty days. Sold loans are not serviced by the Banks. Proceeds from the sale of loans in excess of the carrying value are accounted for as a gain. Total gains on the sale of loans are shown as a component of non-interest income within the Consolidated Statement of Income.
Foreclosed Assets	Foreclosed Assets Foreclosed assets are carried at the lower of cost or fair value less estimated selling costs. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for loan losses, if necessary. Any subsequent write-downs are charged against operating expenses. Net operating expenses and gains and losses realized from disposition are included in non-interest expense and income, respectively, within the Consolidated Statement of Income.
Premises and Equipment	Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using straight-line and accelerated methods over the estimated useful lives of the related assets, which range from five to ten years for furniture, fixtures, and equipment and fifteen to forty years for buildings and improvements. Costs incurred for routine maintenance and repairs are charged to operations as incurred. Costs of major additions and improvements are capitalized.
Bank-Owned Life Insurance	Bank-Owned Life Insurance The Company has purchased life insurance policies on certain officers and directors. Bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Increases in the cash surrender value are recognized as a component of non-interest income within the Consolidated Statement of Income.
Goodwill	Goodwill The Company performs an annual impairment analysis of goodwill for its purchased subsidiaries, Luzerne and The M Group.
Intangible Assets	Intangible Assets At December 31, 2017 , the Company had intangible assets of $641,000 as a result of the acquisition of Luzerne National Bank Corporation, which is net of accumulated amortization of $1,373,000 . These intangible assets will continue to be amortized using the sum-of-the-years digits method of amortization over ten years. The Company also had intangible assets of $821,000 , which is net of accumulated amortization of $192,000 , as a result of the purchase of two books of business related to investment product sales. The book of business intangible is being amortized using the straight-line method over a period of ten years.
Investments in Limited Partnerships	Investments in Limited Partnerships The Company is a limited partner in three partnerships at December 31, 2017 that provide low income elderly housing in the Company’s geographic market area. The carrying value of the Company’s investments in limited partnerships was $402,000 at December 31, 2017 and $586,000 at December 31, 2016 . The investments are being amortized over the ten -year tax credit receipt period utilizing the straight-line method. The partnerships are amortized once the projects reach the level of occupancy needed to begin the ten year tax credit recognition period.
Off-Balance Sheet Financial Instruments	Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company enters into off-balance sheet financial instruments. Those instruments consist of commitments to extend credit and standby letters of credit. When those instruments are funded or become payable, the Company reports the amounts in its financial statements.
Marketing Cost	Marketing Cost Marketing costs are generally expensed as incurred.
Income Taxes	Income Taxes The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. Deferred tax assets and liabilities result from temporary differences in financial and income tax methods of accounting, and are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. The Company analyzed its deferred tax asset position and determined that there was not a need for a valuation allowance due to the Company’s ability to generate future ordinary and capital taxable income. On December 22, 2017 the Tax Cut and Jobs Act was signed into law. ASC 740 (Income Taxes) requires the recognition of the effect of changes in tax laws or rates in the period in which the legislation is enacted. The changes in the deferred tax assets and liabilities remeasured at the new 21% federal tax rate are reflected in income tax expense for fiscal year 2017. The Company when applicable recognizes interest and penalties on income taxes as a component of income tax provision.
Earnings Per Share	Earnings Per Share The Company provides dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated utilizing net income as reported in the numerator and weighted average shares outstanding in the denominator. The computation of diluted earnings per share differs in that the dilutive effects of any stock options are adjusted in the denominator.
Employee Benefits	Employee Benefits Pension and employee benefits include contributions, determined actuarially, to a defined benefit retirement plan covering the eligible employees of JSSB. The plan is funded on a current basis to the extent that it is deductible under existing federal tax regulations. Pension and other employee benefits also include contributions to a defined contribution Section 401(k) plan covering eligible employees. Contributions matching those made by eligible employees are funded throughout the year. In addition, an elective contribution may be made annually at the discretion of the board of directors for the employees of JSSB with no contributions made since 2015.
The M Group Products and Income Recognition	The M Group Products and Income Recognition The M Group product line is comprised primarily of annuities, life insurance, and mutual funds. The revenues generated from life insurance sales are commission only, as The M Group does not underwrite the policies. Life insurance sales include permanent and term policies with the majority of the policies written being permanent. Term life insurance policies are written for 10 , 15 , 20 , and 30 year terms with the majority of the policies being written for 20 years. None of these products are offered as an integral part of lending activities. Commissions from the sale of annuities are recognized at the time notice is received from the third party broker/dealer or an insurance company that the transaction has been accepted and approved, which is also the time when commission income is received. Life insurance commissions are recognized at varying points based on the payment option chosen by the customer. Commissions from monthly and annual payment plans are recognized at the start of each annual period for the life insurance, while quarterly and semi-annual premium payments are recognized quarterly and semi-annually when the earnings process is complete. For example, semi-annual payments on the first of January and July would result in commission income recognition on the first of January and July, while payments on the first of January, April, July, and October would result in commission income recognition on those dates. The potential for chargebacks only exists for those policies on a monthly payment plan since income is recognized at the beginning of the annual coverage period versus at the time of each monthly payment. No liability is maintained for chargebacks as these are removed from income at the time of the occurrence.
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The Company is required to present accumulated other comprehensive income (loss) in a full set of general-purpose financial statements for all periods presented. Accumulated other comprehensive income (loss) is comprised of unrealized holding gains (losses) on the available for sale securities portfolio and the unrecognized components of net periodic benefit costs of the defined benefit pension plan.
Segment Reporting	Segment Reporting The Company has determined that its only reportable segment is Community Banking.
Reclassification of Comparative Amounts	Reclassification of Comparative Amounts Certain items previously reported have been reclassified to conform to the current year’s reporting format. Such reclassifications did not affect net income or shareholders’ equity.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Since the guidance scopes out revenue associated with financial instruments, including loan receivables and investment securities, we do not expect the adoption of the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's revenue is not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers ( Topic 606 ). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is evaluating the effect of adopting this new accounting Update. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. 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. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. ASU 2016-01 will be effective for us on January 1, 2018 and will not have a significant impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1 percent increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In March 2016, the FASB issued ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20). The standard provides that liabilities related to the sale of prepaid stored-value products within the scope of this Update are financial liabilities. The amendments in the Update provide a narrow-scope exception to the guidance in Subtopic 405-20 to require that breakage for those liabilities be accounted for consistent with the breakage guidance in Topic 606. The amendments in this Update are effective for public business entities, certain not-for-profit entities, and certain employee benefit plans for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Earlier application is permitted, including adoption in an interim period. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) , which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses eight specific cash flow issues with the objective of reducing diversity in practice. Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) , which requires recognition of current and deferred income taxes resulting from an intra-entity transfer of any asset (excluding inventory) when the transfer occurs. Consequently, the amendments in this Update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those annual reporting periods. For all other entities, the amendments are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual periods beginning after December 15, 2019. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. That is, earlier adoption should be in the first interim period if an entity issues interim financial statements. The amendments in this Update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This update is not expected to have a significant impact on the Company's financial statements. In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) , which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in this Update should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . This Update, among others things, clarifies that guarantee fees within the scope of Topic 460, Guarantees , (other than product or service warranties) are not within the scope of Topic 606. The effective date and transition requirements for ASU 2016-20 are the same as the effective date and transition requirements for the new revenue recognition guidance. For public entities with a calendar year-end, the new guidance is effective in the quarter and year beginning January 1, 2018. For all other entities with a calendar year-end, the new guidance is effective in the year ending December 31, 2019, and interim periods in 2020. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business , which provides a more robust framework to use in determining when a set of assets and activities (collectively referred to as a “set”) is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods. All other entities should apply the amendments to annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update should be applied prospectively on or after the effective date. This Update is not expected to have a significant impact on the Company’s financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities, that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. This Update is not expected to have a significant impact on the Company’s financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). The amendments in this Update clarify what constitutes a financial asset within the scope of Subtopic 610-20. The amendments also clarify that entities should identify each distinct nonfinancial asset or in substance nonfinancial asset that is promised to a counterparty and to derecognize each asset when the counterparty obtains control. There is also additional guidance provided for partial sales of a nonfinancial asset and when derecognition, and the related gain or loss, should be recognized. The amendments in this Update are effective at the same time as the amendments in Update 2014-09. Therefore, for public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. For all other entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements. In February 2017, the FASB issued ASU 2017-06 , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) . This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) . 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 other components of net benefit cost as defined in paragraphs 715-30-35-4 and 715-60-35-9 are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this Update are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. For other entities, the amendments in this Update are effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. The amendments in this Update should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. This Update is not expected to have a significant impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. This Update is not expected to have a significant impact on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) , which affects any entity that changes the terms or conditions of a share-based payment award. This Update amends the definition of modification by qualifying that modification accounting does not apply to changes to outstanding share-based payment awards that do not affect the total fair value, vesting requirements, or equity/liability classification of the awards. The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for (1) public business entities for reporting periods for which financial statements have not yet been issued and (2) 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 prospectively to an award modified on or after the adoption date. This Update is not expected to have a significant impact on the Company’s financial statements. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) . The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down-round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down-round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down-round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down-round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down- round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt-Debt with Conversion and Other Options ), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Accounting Standards Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the amendments in Part I of this Update are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part I of this Update should be applied either retrospectively to outstanding financial instruments with a down-round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective or retrospectively to outstanding financial instruments with a down-round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) , the objective of which is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the amendments in this Update make certain targeted improvements to simplify the application and disclosure of the hedge accounting guidance in current general accepted accounting principles. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all othe

ACCUMULATED OTHER COMPREHENSI34

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	12 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The changes in accumulated other comprehensive income (loss) by component shown, net of tax and parenthesis indicating debits to net income, as of December 31, 2017 , 2016 , and 2015 were as follows: Twelve Months Ended Twelve Months Ended Twelve Months Ended (In Thousands) Net Unrealized Gain(Loss) on Available for Sale Securities Defined Benefit Plan Total Net Unrealized Gain (Loss) on Available * Defined * Total * Net Unrealized Gain (Loss) on Available * Defined * Total * Beginning balance * $ (639 ) $ (4,289 ) $ (4,928 ) $ 258 $ (4,057 ) $ (3,799 ) $ 2,930 $ (4,597 ) $ (1,667 ) Other comprehensive income (loss) before reclassifications * 990 63 1,053 167 (333 ) (166 ) (962 ) 435 (527 ) Amounts reclassified from accumulated other comprehensive (loss) income * (396 ) 115 (281 ) (1,064 ) 101 (963 ) (1,710 ) 105 (1,605 ) Net current-period other comprehensive income (loss) * 594 178 772 (897 ) (232 ) (1,129 ) (2,672 ) 540 (2,132 ) Reclassification of certain income tax effects from accumulated other comprehensive loss (9 ) (809 ) (818 ) — — — — — — Ending balance $ (54 ) $ (4,920 ) $ (4,974 ) $ (639 ) $ (4,289 ) $ (4,928 ) $ 258 $ (4,057 ) $ (3,799 ) * Amounts net of 34% tax rate
Schedule of Reclassification Out of Accumulated Other Comprehensive Income	The reclassifications out of accumulated other comprehensive income shown, net of tax and parenthesis indicating debits to net income, as of December 31, 2017 , 2016 , and 2015 were as follows: (In Thousands) Amount Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Comprehensive Income Components Twelve Months Ended Affected Line Item in the Consolidated Statement of Income December 31, 2017 December 31, 2016 December 31, 2015 Net realized gain on available for sale securities 600 $ 1,611 $ 2,592 Securities gains, net Income tax effect (204 ) (547 ) (882 ) Income tax provision $ 396 1,064 1,710 Net unrecognized pension costs (174 ) (153 ) (159 ) Salaries and employee benefits Income tax effect 59 52 54 Income tax provision $ (115 ) $ (101 ) $ (105 )

PER SHARE DATA (Tables)

PER SHARE DATA (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
Schedule of Weighted Average Common Shares (Denominator) Used in the Basic and Dilutive Earnings Per Share Computation	The following table sets forth the composition of the weighted average common shares (denominator) used in the basic and dilutive per share computation. Year Ended December 31, 2017 2016 2015 Weighted average common shares issued 5,008,073 5,005,971 5,003,691 Average treasury stock shares (302,471 ) (270,514 ) (231,452 ) Weighted average common shares used to calculate basic and diluted earnings per share 4,705,602 4,735,457 4,772,239

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Schedule of Amortized Cost, Gross Gains and Losses, and Fair Values of Investment Securities	The amortized cost, gross gains and losses, and fair values of investment securities at December 31, 2017 and 2016 are as follows: 2017 (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale (AFS): Mortgage-backed securities $ 4,273 $ 51 $ (111 ) $ 4,213 Asset-backed securities — — — — State and political securities 56,295 411 (198 ) 56,508 Other debt securities 48,807 180 (1,080 ) 47,907 Total debt securities 109,375 642 (1,389 ) 108,628 Financial institution equity securities 13,868 728 — 14,596 Other equity securities 1,300 — (49 ) 1,251 Total equity securities 15,168 728 (49 ) 15,847 Total investment securities AFS $ 124,543 $ 1,370 $ (1,438 ) $ 124,475 2016 (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale (AFS): Mortgage-backed securities $ 9,295 $ 182 $ (164 ) $ 9,313 Asset-backed securities 109 — — 109 State and political securities 60,777 666 (509 ) 60,934 Other debt securities 53,046 137 (2,065 ) 51,118 Total debt securities 123,227 985 (2,738 ) 121,474 Financial institution equity securities 9,566 969 — 10,535 Other equity securities 1,667 — (184 ) 1,483 Total equity securities 11,233 969 (184 ) 12,018 Total investment securities AFS $ 134,460 $ 1,954 $ (2,922 ) $ 133,492
Amortized Cost and Fair Values of Trading Investment Securities	The amortized cost and fair values of trading investment securities at December 31, 2017 and 2016 are as follows. 2017 (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Financial institution equity securities $ 20 $ — $ — $ 20 Other equity securities 192 2 (24 ) 170 Total trading securities $ 212 $ 2 $ (24 ) $ 190 2016 (In Thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Trading: Financial institution equity securities $ — $ — $ — $ — Other equity securities 56 2 — 58 Total trading securities $ 56 $ 2 $ — $ 58
Schedule of Gross Unrealized Losses and Fair Value	The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at December 31, 2017 and 2016 . 2017 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) Value Losses Value Losses Value Losses Available for Sale (AFS) Mortgage-backed securities $ 981 $ (12 ) $ 2,276 $ (99 ) $ 3,257 $ (111 ) State and political securities 15,691 (104 ) 3,018 (94 ) 18,709 (198 ) Other debt securities 7,512 (148 ) 28,517 (932 ) 36,029 (1,080 ) Total debt securities 24,184 (264 ) 33,811 (1,125 ) 57,995 (1,389 ) Other equity securities 1,251 (49 ) — — 1,251 (49 ) Total equity securities 1,251 (49 ) — — 1,251 (49 ) Total Investment Securities AFS $ 25,435 $ (313 ) $ 33,811 $ (1,125 ) $ 59,246 $ (1,438 ) 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (In Thousands) Value Losses Value Losses Value Losses Available for Sale (AFS) Mortgage-backed securities $ 3,572 $ (106 ) $ 3,627 $ (58 ) $ 7,199 $ (164 ) State and political securities 26,113 (509 ) — — 26,113 (509 ) Other debt securities 28,140 (1,179 ) 12,240 (886 ) 40,380 (2,065 ) Total debt securities 57,825 (1,794 ) 15,867 (944 ) 73,692 (2,738 ) Other equity securities 727 (140 ) 756 (44 ) 1,483 (184 ) Total equity securities 727 (140 ) 756 (44 ) 1,483 (184 ) Total Investment Securities AFS $ 58,552 $ (1,934 ) $ 16,623 $ (988 ) $ 75,175 $ (2,922 )
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity	The amortized cost and fair value of debt securities at December 31, 2017 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (In Thousands) Amortized Cost Fair Value Due in one year or less $ 4,696 $ 4,684 Due after one year to five years 43,748 43,609 Due after five years to ten years 49,777 49,063 Due after ten years 11,154 11,272 Total $ 109,375 $ 108,628
Schedule of Gross Realized Gains and Losses	The following table represents gross realized gains and losses on those transactions: Year Ended December 31, (In Thousands) 2017 2016 2015 Gross realized gains: U.S. Government and agency securities $ — $ 11 $ — Mortgage-backed securities 69 35 — State and political securities 408 787 1,571 Other debt securities 53 283 825 Financial institution equity securities 288 572 183 Other equity securities — 217 132 Total gross realized gains $ 818 $ 1,905 $ 2,711 Gross realized losses: U.S. Government and agency securities $ — $ 5 $ — Asset-backed securities — 13 — State and political securities 18 1 22 Other debt securities 51 189 54 Financial institution equity securities — — — Other equity securities 149 86 43 Total gross realized losses $ 218 $ 294 $ 119

LOAN CREDIT QUALITY AND RELAT37

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]
Schedule of related aging categories of loans by segment	The following table presents the related aging categories of loans, by segment, as of December 31, 2017 and 2016 : 2017 (In Thousands) Current Past Due 30 To 89 Days Past Due 90 & Still Accruing Non-Accrual Total Commercial, financial, and agricultural $ 178,022 $ 663 $ 86 $ 114 $ 178,885 Real estate mortgage: Residential 588,278 6,853 318 1,628 597,077 Commercial 325,148 1,823 80 4,968 332,019 Construction 31,547 116 20 — 31,683 Installment loans to individuals 106,335 289 5 49 106,678 1,229,330 $ 9,744 $ 509 $ 6,759 1,246,342 Net deferred loan fees and discounts 272 272 Allowance for loan losses (12,858 ) (12,858 ) Loans, net $ 1,216,744 $ 1,233,756 2016 (In Thousands) Current Past Due 30 To 89 Days Past Due 90 & Still Accruing Non-Accrual Total Commercial, financial, and agricultural $ 145,179 $ 785 $ 14 $ 132 $ 146,110 Real estate mortgage: Residential 553,053 9,112 587 1,988 564,740 Commercial 296,537 786 268 8,591 306,182 Construction 33,879 771 — — 34,650 Installment loans to individuals 43,008 202 1 45 43,256 1,071,656 $ 11,656 $ 870 $ 10,756 1,094,938 Net deferred loan fees and discounts (1,257 ) (1,257 ) Allowance for loan losses (12,896 ) (12,896 ) Loans, net $ 1,057,503 $ 1,080,785
Schedule of interest income if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans	The following table presents the interest income if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans as of December 31, 2017 , 2016 , and 2015 : Year Ended December 31, 2017 2016 2015 (In Thousands) Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Interest Income That Would Have Been Recorded Based on Original Term and Rate Interest Income Recorded on a Cash Basis Commercial, financial, and agricultural $ 23 $ 15 $ 6 $ — $ 48 $ 53 Real estate mortgage: Residential 147 98 151 101 53 38 Commercial 390 238 496 105 281 54 Construction — — — — 16 — Installment loans to individuals 5 3 3 2 — — $ 565 $ 354 $ 656 $ 208 $ 398 $ 145
Schedule of recorded investment, unpaid principal balance, and related allowance of impaired loans by segment	The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of December 31, 2017 and 2016 : 2017 (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 1,033 $ 1,033 $ — Real estate mortgage: Residential 1,428 1,428 — Commercial 1,465 1,465 — Construction — — — 3,926 3,926 — With an allowance recorded: Commercial, financial, and agricultural 235 235 96 Real estate mortgage: Residential 2,304 2,353 367 Commercial 7,981 8,031 1,721 Construction — — — 10,520 10,619 2,184 Total: Commercial, financial, and agricultural 1,268 1,268 96 Real estate mortgage: Residential 3,732 3,781 367 Commercial 9,446 9,496 1,721 Construction — — — $ 14,446 $ 14,545 $ 2,184 2016 (In Thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Commercial, financial, and agricultural $ 109 $ 109 $ — Real estate mortgage: Residential 1,584 1,584 — Commercial 1,833 1,833 — Construction — — — 3,526 3,526 — With an allowance recorded: Commercial, financial, and agricultural 132 132 74 Real estate mortgage: Residential 1,893 1,893 437 Commercial 10,425 10,520 1,668 Construction — — — 12,450 12,545 2,179 Total: Commercial, financial, and agricultural 241 241 74 Real estate mortgage: Residential 3,477 3,477 437 Commercial 12,258 12,353 1,668 Construction — — — $ 15,976 $ 16,071 $ 2,179
Schedule of average recorded investment in impaired loans and related interest income recognized	The following table presents the average recorded investment in impaired loans and related interest income recognized for December 31, 2017 , 2016 , and 2015 : 2017 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 727 $ 41 $ 7 Real estate mortgage: Residential 3,233 75 91 Commercial 11,551 186 233 Construction — — — Installment loans to individuals 5 — 1 $ 15,516 $ 302 $ 332 2016 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 400 $ 16 $ 1 Real estate mortgage: Residential 3,471 89 101 Commercial 12,887 187 110 Construction 138 — — $ 16,896 $ 292 $ 212 2015 (In Thousands) Average Investment in Impaired Loans Interest Income Recognized on an Accrual Basis on Impaired Loans Interest Income Recognized on a Cash Basis on Impaired Loans Commercial, financial, and agricultural $ 1,031 $ 21 $ 10 Real estate mortgage: Residential 2,570 72 47 Commercial 17,529 342 80 Construction 865 1 53 $ 21,995 $ 436 $ 190
Schedule of loan modifications that are considered TDRs	Loan modifications that are considered TDRs completed during the twelve months ended December 31, 2017 and 2016 were as follows: Year Ended December 31, 2017 2016 (In Thousands, Except Number of Contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, financial, and agricultural — $ — $ — — $ — $ — Real estate mortgage: Residential 6 1,015 1,015 3 397 397 Commercial 2 371 371 1 400 400 Construction — — — — — — Total 8 $ 1,386 $ 1,386 4 $ 797 $ 797
Schedule of credit quality categories	The following table presents the credit quality categories identified above as of December 31, 2017 and 2016 : 2017 Commercial and Real Estate Mortgages Installment Loans (In Thousands) Agricultural Residential Commercial Construction to Individuals Totals Pass $ 175,603 $ 593,828 $ 311,209 $ 31,535 $ 106,678 $ 1,218,853 Special Mention 738 1,043 7,337 — — 9,118 Substandard 2,544 2,206 13,473 148 — 18,371 Total $ 178,885 $ 597,077 $ 332,019 $ 31,683 $ 106,678 $ 1,246,342 2016 Commercial and Real Estate Mortgages Installment Loans (In Thousands) Agricultural Residential Commercial Construction to Individuals Totals Pass $ 140,497 $ 561,440 $ 277,916 $ 34,493 $ 43,256 $ 1,057,602 Special Mention 2,943 740 11,143 — — 14,826 Substandard 2,670 2,560 17,123 157 — 22,510 Total $ 146,110 $ 564,740 $ 306,182 $ 34,650 $ 43,256 $ 1,094,938
Schedule of activity in the allowance	Activity in the allowance is presented for the twelve months ended December 31, 2017 , 2016 , and 2015 : 2017 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individual (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 Charge-offs (106 ) (578 ) (58 ) — (303 ) — (1,045 ) Recoveries 135 55 1 9 77 — 277 Provision (406 ) 819 (641 ) (32 ) 885 105 730 Ending Balance $ 1,177 $ 5,679 $ 4,277 $ 155 $ 1,075 $ 495 $ 12,858 2016 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044 Charge-offs (167 ) (39 ) (93 ) (2 ) (229 ) — (530 ) Recoveries 62 15 8 9 92 — 186 Provision 127 291 843 11 310 (386 ) 1,196 Ending Balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 2015 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Beginning Balance $ 1,124 $ 3,755 $ 4,205 $ 786 $ 245 $ 464 $ 10,579 Charge-offs (283 ) (49 ) (743 ) (46 ) (240 ) — (1,361 ) Recoveries 176 81 182 23 64 — 526 Provision 515 1,329 573 (603 ) 174 312 2,300 Ending Balance $ 1,532 $ 5,116 $ 4,217 $ 160 $ 243 $ 776 $ 12,044
Schedule of concentration of loan	The Company has a concentration of loans at December 31, 2017 and 2016 as follows: 2017 2016 Owners of residential rental properties 15.16 % 16.10 % Owners of commercial rental properties 13.57 % 14.18 %
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method	The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2017 and 2016 : 2017 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individuals Unallocated Totals (In Thousands) Residential Commercial Construction Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 96 $ 367 $ 1,721 $ — $ — $ — $ 2,184 Collectively evaluated for impairment 1,081 5,312 2,556 155 1,075 495 10,674 Total ending allowance balance $ 1,177 $ 5,679 $ 4,277 $ 155 $ 1,075 $ 495 $ 12,858 Loans: Individually evaluated for impairment $ 1,268 $ 3,732 $ 9,446 $ — $ — $ 14,446 Collectively evaluated for impairment 177,617 593,345 322,573 31,683 106,678 1,231,896 Total ending loans balance $ 178,885 $ 597,077 $ 332,019 $ 31,683 $ 106,678 $ 1,246,342 2016 Commercial and Agricultural Real Estate Mortgages Installment Loans to Individuals (In Thousands) Residential Commercial Construction Unallocated Totals Allowance for Loan Losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 74 $ 437 $ 1,668 $ — $ — $ — $ 2,179 Collectively evaluated for impairment 1,480 4,946 3,307 178 416 390 10,717 Total ending allowance balance $ 1,554 $ 5,383 $ 4,975 $ 178 $ 416 $ 390 $ 12,896 Loans: Individually evaluated for impairment $ 241 $ 3,477 $ 12,258 $ — $ — $ 15,976 Collectively evaluated for impairment 145,869 561,263 293,924 34,650 43,256 1,078,962 Total ending loans balance $ 146,110 $ 564,740 $ 306,182 $ 34,650 $ 43,256 $ 1,094,938

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Summary of major classifications of premises and equipment	Major classifications of premises and equipment are summarized as follows at December 31, 2017 and 2016 : (In Thousands) 2017 2016 Land $ 7,107 $ 6,400 Premises 20,808 18,568 Furniture and equipment 9,895 8,825 Leasehold improvements 2,311 1,698 Total 40,121 35,491 Less accumulated depreciation and amortization 12,735 11,216 Net premises and equipment $ 27,386 $ 24,275

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	12 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of December 31, 2017 , the estimated future amortization expense for the core deposit and trade name intangible was: (In Thousands) Core Deposit Intangible Trade Name Intangible Book of Business Intangible 2018 $ 185 $ 13 $ 102 2019 151 11 102 2020 117 8 102 2021 83 6 102 2022 48 4 102 2023 14 1 102 2024 — — 102 2025 — — 102 2026 — — 5 $ 598 $ 43 $ 821

TIME DEPOSITS (Tables)

TIME DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2017
Banking and Thrift [Abstract]
Schedule of maturities on time deposits of $100,000 or more	At December 31, 2017 , the scheduled maturities on time deposits of $100,000 or more are as follows: (In Thousands) 2017 Three months or less $ 22,164 Three months to six months 10,354 Six months to twelve months 32,660 Over twelve months 60,889 Total $ 126,067
Schedule of total time deposit maturities	Total time deposit maturities are as follows at December 31, 2017 : (In Thousands) 2017 2018 $ 115,659 2019 62,572 2020 22,453 2021 25,810 2022 1,546 Thereafter 1,427 Total $ 229,467

SHORT-TERM BORROWINGS (Tables)

SHORT-TERM BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Summary of outstanding balances and related information for short-term borrowings	The outstanding balances and related information for short-term borrowings are summarized as follows at December 31, 2017 , 2016 , and 2015 : (In Thousands) 2017 2016 2015 Repurchase Agreements: Balance at year end $ 7,878 $ 13,241 $ 18,334 Maximum amount outstanding at any month end 13,782 17,827 18,614 Average balance outstanding during the year 10,425 15,394 15,834 Weighted-average interest rate: At year end 0.13 % 0.16 % 0.21 % Paid during the year 0.14 % 0.18 % 0.21 % Overnight: Balance at year end $ 92,870 $ — $ 28,304 Maximum amount outstanding at any month end 92,870 24,346 42,760 Average balance outstanding during the year 15,559 3,124 23,075 Weighted-average interest rate: At year end 1.54 % — % 0.43 % Paid during the year 1.41 % 0.57 % 0.36 %
Summary of remaining contractual maturity of repurchase agreements	The remaining contractual maturity of repurchase agreements in the consolidated balance sheets as of December 31, 2017 and December 31, 2016 is presented in the following tables. 2017 2016 Remaining Contractual Maturity of the Agreements (In Thousands) Overnight and Continuous Overnight and Continuous Repurchase Agreements: U.S. Government and agency securities $ — $ — Mortgage-backed securities 1,898 6,684 Asset-backed securities — 109 State and political securities 6,894 5,241 Other debt securities 8,662 8,866 Total carrying value of collateral pledged $ 17,454 $ 20,900 Total liability recognized for repurchase agreements $ 7,878 $ 13,241

LONG-TERM BORROWINGS (Tables)

LONG-TERM BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2017
Debt Disclosure [Abstract]
Schedule of outstanding long-term borrowings with the FHLB by contractual maturities	The following represents outstanding long-term borrowings with the FHLB by contractual maturities at December 31, 2017 and 2016 : (In Thousands) Weighted Average Interest Rate Stated Interest Rate Range Description Maturity 2017 2016 From To 2017 2016 Variable 2017 — % 4.22 % 4.15 % 4.28 % $ — $ 20,000 Variable 2018 3.18 % 3.18 % 3.18 % 3.18 % 10,000 10,000 Total Variable 3.18 % 3.87 % 10,000 30,000 Fixed 2017 — % 0.91 % 0.90 % 0.97 % — 25,000 Fixed 2018 1.13 % 1.13 % 1.13 % 1.13 % 2,000 2,000 Fixed 2019 1.59 % 1.55 % 1.54 % 1.63 % 17,292 7,292 Fixed 2020 1.71 % 1.70 % 1.62 % 1.79 % 28,333 18,333 Fixed 2022 1.99 % 2.04 % 1.98 % 2.04 % 13,000 3,000 Total Fixed 1.72 % 1.32 % 60,625 55,625 Total 1.92 % 2.21 % $ 70,625 $ 85,625
Schedule of outstanding long-term borrowings with the FHLB by contractual maturities and Weighted-Average Rate	(In Thousands) Year Ending December 31, Amount Weighted Average Rate 2018 $ 12,000 2.84 % 2019 17,292 1.59 % 2020 28,333 1.71 % 2022 13,000 1.99 % $ 70,625 1.92 %
Schedule of future minimum lease payments for capital leases	The following is a schedule showing the future minimum lease payments under the capital lease by years and the present value of the minimum lease payments as of December 31, 2017. The interest rate related to the lease obligation is 2.75% and the maturity date is October 2023. (In Thousands) Lease Payment Interest Present Value of Minimum Lease Payment 2018 $ 38 $ 9 $ 29 2019 38 9 29 2020 38 8 30 2021 38 7 31 2022 37 6 31 Thereafter 200 5 195 $ 389 $ 44 $ 345

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of temporary differences giving rise to the net deferred tax asset position	The following temporary differences gave rise to the net deferred tax asset position at December 31, 2017 and 2016 : (In Thousands) 2017 2016 Deferred tax assets: Allowance for loan losses $ 2,714 $ 4,400 Deferred compensation 1,235 1,840 Defined Pension 684 1,450 Deferred Loan fees and discounts 211 320 Investment securities allowance 45 517 Unrealized loss on available for sale securities 14 329 Other 727 1,393 Total 5,630 10,249 Deferred tax liabilities: Investment security accretion 95 244 Depreciation 537 588 Amortization 610 1,020 Total 1,242 1,852 Deferred tax asset, net $ 4,388 $ 8,397
Schedule of provision or benefit for income taxes	The provision or benefit for income taxes is comprised of the following for the year ended December 31, 2017 , 2016 , and 2015 : (In Thousands) 2017 2016 2015 Currently payable $ 5,690 $ 3,054 $ 3,527 Deferred benefit (955 ) 1,543 209 Change in corporate tax rate 2,724 — — Total provision $ 7,459 $ 4,597 $ 3,736
Schedule of reconciliation between the expected income tax or benefit and the effective income tax rate on income before income tax provision or benefit	A reconciliation between the expected income tax or benefit and the effective income tax rate on income before income tax provision or benefit follows for the year ended December 31, 2017 , 2016 , and 2015 : 2017 2016 2015 (In Thousands) Amount % Amount % Amount % Provision at expected rate $ 5,859 34.00 % $ 5,804 34.00 % $ 5,996 34.00 % (Decrease) increase in tax resulting from: Tax-exempt income (811 ) (4.71 ) (1,092 ) (6.40 ) (1,492 ) (8.46 ) Tax credits (177 ) (1.03 ) (312 ) (1.83 ) (737 ) (4.17 ) Change in corporate tax rate 2,724 15.81 — — — — Other, net (136 ) (0.78 ) 197 1.16 (31 ) (0.18 ) Effective income tax provision and rate $ 7,459 43.29 % $ 4,597 26.93 % $ 3,736 21.19 %

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2017
Defined Benefit Plan [Abstract]
Schedule of obligation and funded status	The following table sets forth the obligation and funded status as of December 31, 2017 and 2016 : (In Thousands) 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 19,289 $ 18,947 Interest cost 756 775 Actuarial loss (gain) 159 139 Benefits paid (782 ) (800 ) Curtailment gain — — Other, change in actuarial assumptions 1,247 228 Benefit obligation at end of year $ 20,669 $ 19,289 Change in plan assets: Fair value of plan assets at beginning of year $ 15,090 $ 14,223 Actual return on plan assets 2,424 910 Employer contribution 750 750 Benefits paid (782 ) (797 ) Adjustment to fair value of plan assets 4 4 Fair value of plan assets at end of year 17,486 15,090 Funded status $ (3,183 ) $ (4,199 ) Accounts recognized on balance sheet as: Total liabilities $ (3,183 ) $ (4,199 ) Amounts not yet recognized as a component of net periodic pension cost: Amounts recognized in accumulated other comprehensive income (loss) consist of: Net loss $ 6,227 $ 6,498
Schedule of components of the net periodic cost and other amounts recognized in other comprehensive income (loss)	Components of Net Periodic Cost and Other Amounts Recognized in Other Comprehensive Income (loss) as of December 31, 2017 , 2016 , and 2015 are as follows: (In Thousands) 2017 2016 2015 Net periodic pension cost: Service cost $ — $ 55 $ 64 Interest cost 756 775 757 Expected return on plan assets (926 ) (989 ) (983 ) Amortization of unrecognized net loss 174 153 159 Net periodic benefit (cost) $ 4 $ (6 ) $ (3 )
Schedule of weighted-average assumptions used to determine benefit obligations and net periodic cost	Weighted-average assumptions used to determine benefit obligations at December 31, 2017 , 2016 , and 2015 : 2017 2016 2015 Discount rate 3.47 % 3.98 % 4.17 % Rate of compensation increase N/A N/A N/A Weighted-average assumptions used to determine net periodic cost for years ended December 31, 2017 , 2016 , and 2015 : 2017 2016 2015 Discount rate 3.98 % 4.17 % 3.83 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 %
Schedule of plan's weighted-average asset allocations by asset category	The Plan’s weighted-average asset allocations at December 31, 2017 and 2016 by asset category are as follows: Asset Category 2017 2016 Cash 4.96 % 6.54 % Fixed income securities 11.42 % 9.15 % Equity 66.90 % 64.79 % Inflation Hedges/Real Assets 5.82 % 5.55 % Hedged Strategies 10.90 % 13.97 % Total 100.00 % 100.00 %
Schedule setting forth by level, within the fair value hierarchy the Plan's assets at fair value	The following table sets forth by level, within the fair value hierarchy detailed in Note 21 - Fair Value Measurements, the Plan’s assets at fair value as of December 31, 2017 and 2016 : 2017 (In Thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 868 $ — $ — $ 868 Mutual funds - taxable fixed income 1,992 — — 1,992 Mutual funds - domestic equity 9,358 — — 9,358 Mutual funds - international equity 2,343 — — 2,343 Inflation Hedges/Real Assets 1,019 — — 1,019 Hedged Strategies 1,906 — — 1,906 Total assets at fair value $ 17,486 $ — $ — $ 17,486 2016 (In Thousands) Level I Level II Level III Total Assets: Cash and cash equivalents $ 987 $ — $ — $ 987 Mutual funds - taxable fixed income 1,379 — — 1,379 Mutual funds - domestic equity 8,944 — — 8,944 Mutual funds - international equity 835 — — 835 Inflation Hedges/Real Assets 838 — — 838 Hedged Strategies 2,107 — — 2,107 Total assets at fair value $ 15,090 $ — $ — $ 15,090
Schedule of future benefit payments expected to be paid	The following future benefit payments are expected to be paid: (In Thousands) 2018 $ 838 2019 874 2020 907 2021 898 2022 918 Thereafter 5,249 $ 9,684

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options activity	A summary of stock option activity for the year ended December 31, 2017 is presented below: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2014 — $ — — $ — Granted 38,750 42.03 9.67 Exercised — — Forfeited (4,000 ) 42.03 Expired — — Outstanding at December 31, 2015 34,750 42.03 9.67 14,943 Granted — — Exercised — — Forfeited (8,250 ) 42.03 Expired — — Outstanding at December 31, 2016 26,500 42.03 8.66 224,455 Granted 70,000 44.21 9.23 Exercised — — Forfeited (3,000 ) 44.21 Expired — — Outstanding at December 31, 2017 93,500 $ 43.59 8.79 $ 279,365 Options exercisable at December 31, 2017 — $ — — $ — On December 31, 2017 , a total of 93,500 options were outstanding. Outstanding options at December 31, 2017 and the related vesting schedules are summarized below: Stock Options Granted Date Shares Forfeited Outstanding Strike Price Vesting Period Expiration March 24, 2017 46,250 (3,000 ) 43,250 $ 44.21 3 years 10 years March 24, 2017 23,750 — 23,750 44.21 5 years 10 years August 27, 2015 38,750 (12,250 ) 26,500 42.03 5 years 10 years
Stock option valuation assumptions	The following is a summary of the assumptions used in this model for the stock options granted during 2017 and 2015 (no options were issued during 2016): 2017 2015 Risk-free interest rate 1.90 % 1.63 % Expected volatility 27.63 % 31.58 % Expected dividend yield 4.20 % 4.22 % Expected life 6.84 years 7.51 years Weighted average grant date fair value per option $ 0.75 $ 3.96

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
Related Party Transactions [Abstract]
Summary of loan activity with executive officers, directors, principal shareholders, and associates of such persons	A summary of loan activity with executive officers, directors, principal shareholders, and associates of such persons is listed below for the years ended December 31, 2017 and 2016 : (In Thousands) Beginning Balance New Loans Repayments Ending Balance 2016 $ 9,258 $ 5,875 $ (6,256 ) $ 8,877 2017 8,877 13,147 (3,013 ) 19,011

COMMITMENTS AND CONTINGENT LI47

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental payments under operating leases with noncancellable terms in excess of one year	The following schedule shows future minimum rental payments under operating leases with noncancellable terms in excess of one year as of December 31, 2017 : (In Thousands) 2018 $ 599 2019 480 2020 463 2021 369 2022 261 Thereafter 1,246 $ 3,418

OFF-BALANCE SHEET RISK (Tables)

OFF-BALANCE SHEET RISK (Tables)	12 Months Ended
	Dec. 31, 2017
Off Balance Sheet Risk
Schedule of financial instruments whose contract amounts represent credit risk	Financial instruments whose contract amounts represent credit risk are as follows at December 31, 2017 and 2016 : (In Thousands) 2017 2016 Commitments to extend credit $ 264,982 $ 263,487 Standby letters of credit 10,406 6,515 Credit exposure from the sale of assets with recourse 4,893 6,341

CAPITAL REQUIREMENTS (Tables)

CAPITAL REQUIREMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Banking and Thrift [Abstract]
Schedule of the Company's and the Bank's actual capital ratios showing that both met all regulatory capital requirements	The Company’s and the Banks' actual capital ratios (using the definitions from the prompt corrective action rules) are presented in the following tables, which shows that the Company and both Banks met all regulatory capital requirements. Consolidated Company 2017 2016 (In Thousands) Amount Ratio Amount Ratio Common Equity Tier I Capital (to Risk-weighted Assets) Actual $ 125,513 11.254 % $ 125,804 12.620 % For Capital Adequacy Purposes 50,187 4.500 % 44,849 4.500 % Minimum To Maintain Capital Conservation Buffer 64,128 5.750 % 51,078 5.125 % To Be Well Capitalized 72,493 6.500 % 64,782 6.500 % Total Capital (to Risk-weighted Assets) Actual $ 132,094 11.844 % $ 133,393 13.380 % For Capital Adequacy Purposes 89,223 8.000 % 79,732 8.000 % Minimum To Maintain Capital Conservation Buffer 103,164 9.250 % 85,961 8.625 % To Be Well Capitalized 111,528 10.000 % 99,665 10.000 % Tier I Capital (to Risk-weighted Assets) Actual $ 125,513 11.254 % $ 125,804 12.620 % For Capital Adequacy Purposes 66,916 6.000 % 59,799 6.000 % Minimum To Maintain Capital Conservation Buffer 80,857 7.250 % 66,028 6.625 % To Be Well Capitalized 89,222 8.000 % 79,732 8.000 % Tier I Capital (to Average Assets) Actual $ 125,513 8.766 % $ 125,804 9.432 % For Capital Adequacy Purposes 57,273 4.000 % 53,352 4.000 % To Be Well Capitalized 71,591 5.000 % 66,691 5.000 % Jersey Shore State Bank 2017 2016 (In Thousands) Amount Ratio Amount Ratio Common Equity Tier I Capital (to Risk-weighted Assets) Actual $ 88,289 10.120 % $ 86,397 11.136 % For Capital Adequacy Purposes 39,259 4.500 % 34,914 4.500 % Minimum To Maintain Capital Conservation Buffer 50,164 5.750 % 39,763 5.125 % To Be Well Capitalized 56,707 6.500 % 50,431 6.500 % Total Capital (to Risk-weighted Assets) Actual $ 93,145 10.677 % $ 90,992 11.728 % For Capital Adequacy Purposes 69,791 8.000 % 62,069 8.000 % Minimum To Maintain Capital Conservation Buffer 80,696 9.250 % 66,918 8.625 % To Be Well Capitalized 87,239 10.000 % 77,587 10.000 % Tier I Capital (to Risk-weighted Assets) Actual $ 88,289 10.120 % $ 86,397 11.136 % For Capital Adequacy Purposes 52,345 6.000 % 46,552 6.000 % Minimum To Maintain Capital Conservation Buffer 63,251 7.250 % 51,401 6.625 % To Be Well Capitalized 69,794 8.000 % 62,069 8.000 % Tier I Capital (to Average Assets) Actual $ 88,289 8.235 % $ 86,397 8.894 % For Capital Adequacy Purposes 42,885 4.000 % 38,856 4.000 % To Be Well Capitalized 53,606 5.000 % 48,570 5.000 % Luzerne Bank 2017 2016 (In Thousands) Amount Ratio Amount Ratio Common Equity Tier I Capital (to Risk-weighted Assets) Actual $ 31,116 9.731 % $ 31,102 10.165 % For Capital Adequacy Purposes 14,389 4.500 % 13,769 4.500 % Minimum To Maintain Capital Conservation Buffer 18,386 5.750 % 15,682 5.125 % To Be Well Capitalized 20,785 6.500 % 19,889 6.500 % Total Capital (to Risk-weighted Assets) Actual $ 32,533 10.174 % $ 33,589 10.977 % For Capital Adequacy Purposes 25,581 8.000 % 24,479 8.000 % Minimum To Maintain Capital Conservation Buffer 29,578 9.250 % 26,391 8.625 % To Be Well Capitalized 31,977 10.000 % 30,599 10.000 % Tier I Capital (to Risk-weighted Assets) Actual $ 31,116 9.731 % $ 31,102 10.165 % For Capital Adequacy Purposes 19,186 6.000 % 18,359 6.000 % Minimum To Maintain Capital Conservation Buffer 23,183 7.250 % 20,272 6.625 % To Be Well Capitalized 25,581 8.000 % 24,479 8.000 % Tier I Capital (to Average Assets) Actual $ 31,116 8.384 % $ 31,102 8.535 % For Capital Adequacy Purposes 14,845 4.000 % 14,576 4.000 % To Be Well Capitalized 18,557 5.000 % 18,220 5.000 %

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of assets reported on the balance sheet at their fair value on a recurring basis	The following table presents the assets reported on the balance sheet at their fair value on a recurring basis as of December 31, 2017 and 2016 , by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. 2017 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 4,213 $ — $ 4,213 State and political securities — 56,508 — 56,508 Other debt securities — 47,907 — 47,907 Financial institution equity securities 14,596 — — 14,596 Other equity securities 1,251 — — 1,251 Investment securities, trading: Other equity securities 190 — — 190 Total assets measured on a recurring basis $ 16,037 $ 108,628 $ — $ 124,665 2016 (In Thousands) Level I Level II Level III Total Assets measured on a recurring basis: Investment securities, available for sale: Mortgage-backed securities $ — $ 9,313 $ — $ 9,313 Asset-backed securities — 109 — 109 State and political securities — 60,934 — 60,934 Other debt securities — 51,118 — 51,118 Financial institution equity securities 10,535 — — 10,535 Other equity securities 1,483 — — 1,483 Investment securities, trading: Financial institution equity securities 58 — — 58 Total assets measured on a recurring basis $ 12,076 $ 121,474 $ — $ 133,550
Schedule of assets reported on the consolidated balance sheet at their fair value on a non-recurring basis	The following table presents the assets reported on the balance sheet at their fair value on a non-recurring basis as of December 31, 2017 and 2016 , by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. 2017 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 12,262 $ 12,262 Other real estate owned — — 143 143 2016 (In Thousands) Level I Level II Level III Total Assets measured on a non-recurring basis: Impaired loans $ — $ — $ 13,797 $ 13,797 Other real estate owned — — 839 839
Schedule of listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques	The following table provides a listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques as of December 31, 2017 and 2016 : 2017 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 6,583 Discounted cash flow Temporary reduction in payment amount 3% to (70)% (4)% Probability of default —% 5,679 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (17)% Other real estate owned $ 143 Appraisal of collateral (1) Appraisal adjustments (1) (20)% (20)% 2016 Quantitative Information About Level III Fair Value Measurements (In Thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range Weighted Average Impaired loans $ 5,304 Discounted cash flow Temporary reduction in payment amount 0 to (70)% (20)% Probability of default —% 8,493 Appraisal of collateral (1) Appraisal adjustments (1) 0 to (20)% (15)% Other real estate owned $ 839 Appraisal of collateral (1) Appraisal adjustments (1) (20)% (20)% (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

FAIR VALUE OF FINANCIAL INSTR51

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of fair values of financial instruments	The fair values of the Company’s financial instruments are as follows at December 31, 2017 and 2016 : Fair Value Measurements at December 31, 2017 (In Thousands) Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Financial assets: Cash and cash equivalents $ 27,243 $ 27,243 $ 27,243 $ — $ — Investment securities: Available for sale 124,475 124,475 15,847 108,628 — Trading 190 190 190 — — Loans held for sale 1,196 1,196 1,196 — — Loans, net 1,233,756 1,264,584 — — 1,264,584 Bank-owned life insurance 27,982 27,982 27,982 — — Accrued interest receivable 4,321 4,321 4,321 — — Financial liabilities: Interest-bearing deposits $ 843,004 $ 838,441 $ 611,187 $ — $ 227,254 Noninterest-bearing deposits 303,316 303,316 303,316 — — Short-term borrowings 100,748 100,748 100,748 — — Long-term borrowings 70,970 70,280 — — 70,280 Accrued interest payable 502 502 502 — — Fair Value Measurements at December 31, 2016 (In Thousands) Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Financial assets: Cash and cash equivalents $ 43,671 $ 43,671 $ 43,671 $ — $ — Investment securities: Available for sale 133,492 133,492 12,018 121,474 — Trading 58 58 58 Loans held for sale 1,953 1,953 1,953 — — Loans, net 1,080,785 1,088,122 — — 1,088,122 Bank-owned life insurance 27,332 27,332 27,332 — — Accrued interest receivable 3,672 3,672 3,672 — — Financial liabilities: Interest-bearing deposits $ 791,937 $ 789,401 $ 571,768 $ — $ 217,633 Noninterest-bearing deposits 303,277 303,277 303,277 — — Short-term borrowings 13,241 13,241 13,241 — — Long-term borrowings 85,998 86,353 — — 86,353 Accrued interest payable 455 455 455 — —

PARENT COMPANY ONLY FINANCIAL52

PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Balance Sheet	CONDENSED BALANCE SHEET, DECEMBER 31, (In Thousands) 2017 2016 ASSETS: Cash $ 132 $ 578 Investment in subsidiaries: Bank 131,637 129,421 Non-bank 5,685 8,037 Other assets 889 373 Total Assets $ 138,343 $ 138,409 LIABILITIES AND SHAREHOLDERS’ EQUITY: Other liabilities $ 149 $ 160 Shareholders’ equity 138,194 138,249 Total liability and shareholders’ equity $ 138,343 $ 138,409
Condensed Income Statement	CONDENSED STATEMENT OF INCOME FOR THE YEARS ENDED DECEMBER 31, (In Thousands) 2017 2016 2015 Operating income: Dividends from subsidiaries $ 11,352 $ 10,007 $ 11,367 Equity in undistributed earnings of subsidiaries (908 ) 3,128 3,167 Operating expenses (671 ) (660 ) (636 ) Net income $ 9,773 $ 12,475 $ 13,898 Comprehensive income $ 10,545 $ 11,346 $ 11,766
Condensed Cash Flow Statement	CONDENSED STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, (In Thousands) 2017 2016 2015 OPERATING ACTIVITIES: Net income $ 9,773 $ 12,475 $ 13,898 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries 908 (3,128 ) (3,167 ) Other, net (525 ) 344 (313 ) Net cash provided by operating activities 10,156 9,691 10,418 FINANCING ACTIVITIES: Dividends paid (8,837 ) (8,903 ) (8,967 ) Issuance of common stock 116 101 116 Purchase of treasury stock (1,881 ) (574 ) (2,603 ) Net cash used for financing activities (10,602 ) (9,376 ) (11,454 ) NET (DECREASE) INCREASE IN CASH (446 ) 315 (1,036 ) CASH, BEGINNING OF YEAR 578 263 1,299 CASH, END OF YEAR $ 132 $ 578 $ 263

CONSOLIDATED QUARTERLY FINANC53

CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Schedule of consolidated quarterly financial data	(In Thousands, Except Per Share Data) For the Three Months Ended 2017 March 31, June 30, Sept. 30, Dec. 31, Interest income $ 11,682 $ 12,209 $ 12,948 $ 13,138 Interest expense 1,346 1,385 1,496 1,670 Net interest income 10,336 10,824 11,452 11,468 Provision for loan losses 330 215 60 125 Non-interest income, excluding securities gains 2,452 2,775 2,442 2,483 Securities gains (losses), net 199 (12 ) 298 107 Non-interest expense 8,985 9,063 9,566 9,248 Income before income tax provision 3,672 4,309 4,566 4,685 Income tax provision 986 1,223 1,282 3,968 Net income $ 2,686 $ 3,086 $ 3,284 $ 717 Earnings per share - basic $ 0.57 $ 0.65 $ 0.70 $ 0.16 Earnings per share - diluted $ 0.56 $ 0.65 $ 0.70 $ 0.15 (In Thousands, Except Per Share Data) For the Three Months Ended 2016 March 31, June 30, Sept. 30, Dec. 31, Interest income $ 11,726 $ 11,669 $ 11,660 $ 11,758 Interest expense 1,352 1,381 1,413 1,421 Net interest income 10,374 10,288 10,247 10,337 Provision for loan losses 350 258 258 330 Non-interest income, excluding securities gains 2,522 2,686 2,821 2,415 Securities gains, net 475 492 261 441 Non-interest expense 9,061 8,666 8,739 8,625 Income before income tax provision 3,960 4,542 4,332 4,238 Income tax provision 882 1,152 1,273 1,290 Net income $ 3,078 $ 3,390 $ 3,059 $ 2,948 Earnings per share - basic and diluted $ 0.65 $ 0.72 $ 0.65 $ 0.62

OPERATIONS AND SUMMARY OF SIG54

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Business, Loan Charge-off Policies, and Loans Held for Sale (Details)	12 Months Ended
	Dec. 31, 2017segmentoffice
Loans held for sale
Number of offices | office	26
Number of reportable segments | segment	1
Number of days loan is past due unless both well secured and in process of collection	180 days
Minimum
Loans held for sale
Short holding period for loans held for sale (less than 2 weeks)	14 days
Maximum
Loans held for sale
Short holding period for loans held for sale (less than 2 weeks)	30 days
United Solutions LLC
Loans held for sale
Partnership, ownership interest	80.00%

OPERATIONS AND SUMMARY OF SIG55

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Premises and Equipment, Goodwill, Intangible Assets, and Investments in Limited Partnerships (Details)	12 Months Ended
	Dec. 31, 2017USD ($)partnershipbusiness	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment loss	$ 0	$ 0	$ 0
Investment in Limited Partnerships
Number of partnerships held by entity | partnership	3
Carrying value of investments in limited partnerships	$ 402,000	586,000
Tax credit receipt period over which investment in the partnership entered into after 2004 are being fully amortized	10 years
Amortization of investment in limited partnerships	$ 184,000	$ 312,000	$ 661,000
Furniture, fixtures, and equipment | Minimum
Premises and equipment
Estimated useful lives (in years)	5 years
Furniture, fixtures, and equipment | Maximum
Premises and equipment
Estimated useful lives (in years)	10 years
Buildings and improvements | Minimum
Premises and equipment
Estimated useful lives (in years)	15 years
Buildings and improvements | Maximum
Premises and equipment
Estimated useful lives (in years)	40 years
Luzerne National Bank Corporation
Finite-Lived Intangible Assets [Line Items]
Intangible assets net	$ 641,000
Accumulated amortization	$ 1,373,000
Useful life (in years)	10 years
Acquisition of Businesses Related to Investment Product Sales
Finite-Lived Intangible Assets [Line Items]
Intangible assets net	$ 821,000
Accumulated amortization	$ 192,000
Useful life (in years)	10 years
Number of businesses acquired | business	2

OPERATIONS AND SUMMARY OF SIG56

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - The M Group Products and Income Recognition (Details) - The M Group	12 Months Ended
	Dec. 31, 2017
The M Group products and income recognition
Term life insurance policies, term one (in years)	10 years
Term life insurance policies, term two (in years)	15 years
Term life insurance policies, term three (in years)	20 years
Term life insurance policies, term four (in years)	30 years
Term for which majority of the term life insurance policies are written (in years)	20 years

OPERATIONS AND SUMMARY OF SIG57

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - Accounting Standards Update 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income $ in Thousands	Dec. 31, 2017USD ($)
Accumulated Other Comprehensive Income Loss, Defined Benefit Plan, After Tax
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
One-time cumulative effect adjustment	$ 809
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
One-time cumulative effect adjustment	$ 9

ACCUMULATED OTHER COMPREHENSI58

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Increase (Decrease) in Shareholders' Equity
Beginning balance	$ 138,249	$ 136,279	$ 135,967
Other comprehensive income (loss) before reclassifications	1,053	(166)	(527)
Amounts reclassified from accumulated other comprehensive (loss) income	(281)	(963)	(1,605)
Total other comprehensive income (loss)	772	(1,129)	(2,132)
Reclassification of certain income tax effects from accumulated other comprehensive loss	0	0	0
Ending balance	138,194	138,249	136,279
Net Unrealized Gain(Loss) on Available for Sale Securities
Increase (Decrease) in Shareholders' Equity
Beginning balance	(639)	258	2,930
Other comprehensive income (loss) before reclassifications	990	167	(962)
Amounts reclassified from accumulated other comprehensive (loss) income	(396)	(1,064)	(1,710)
Total other comprehensive income (loss)	594	(897)	(2,672)
Reclassification of certain income tax effects from accumulated other comprehensive loss	(9)	0	0
Ending balance	(54)	(639)	258
Defined Benefit Plan
Increase (Decrease) in Shareholders' Equity
Beginning balance	(4,289)	(4,057)	(4,597)
Other comprehensive income (loss) before reclassifications	63	(333)	435
Amounts reclassified from accumulated other comprehensive (loss) income	115	101	105
Total other comprehensive income (loss)	178	(232)	540
Reclassification of certain income tax effects from accumulated other comprehensive loss	(809)	0	0
Ending balance	(4,920)	(4,289)	(4,057)
AOCI Attributable to Parent
Increase (Decrease) in Shareholders' Equity
Beginning balance	(4,928)	(3,799)	(1,667)
Total other comprehensive income (loss)	772	(1,129)	(2,132)
Reclassification of certain income tax effects from accumulated other comprehensive loss	(818)
Ending balance	$ (4,974)	$ (4,928)	$ (3,799)

ACCUMULATED OTHER COMPREHENSI59

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized pension costs									$ (18,999)	$ (17,813)	$ (17,023)
Income tax effect	$ (3,968)	$ (1,282)	$ (1,223)	$ (986)	$ (1,290)	$ (1,273)	$ (1,152)	$ (882)	(7,459)	(4,597)	(3,736)
Amount Reclassified from Accumulated Other Comprehensive Income | Net Unrealized Gain(Loss) on Available for Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net realized gain on available for sale securities									600	1,611	2,592
Income tax effect									(204)	(547)	(882)
Amount reclassified from accumulated other comprehensive income									396	1,064	1,710
Amount Reclassified from Accumulated Other Comprehensive Income | Defined Benefit Plan
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net unrecognized pension costs									(174)	(153)	(159)
Income tax effect									59	52	54
Amount reclassified from accumulated other comprehensive income									$ (115)	$ (101)	$ (105)

PER SHARE DATA (Details)

PER SHARE DATA (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Aug. 27, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Weighted average common shares issued (in shares)	5,008,073	5,005,971	5,003,691
Average treasury stock shares (in shares)	(302,471)	(270,514)	(231,452)
Weighted average common shares used to calculate basic and diluted earnings per share (in shares)	4,705,602	4,735,457	4,772,239
Options outstanding (in shares)	93,500	26,500	34,750	26,500	0
Share price (in dollars per share)	$ 43.59	$ 42.03	$ 42.03		$ 0

INVESTMENT SECURITIES - Amortiz

INVESTMENT SECURITIES - Amortized Cost and Fair Values of Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Available for sale (AFS)
Amortized Cost	$ 124,543	$ 134,460
Gross Unrealized Gains	1,370	1,954
Gross Unrealized Losses	(1,438)	(2,922)
Fair Value	124,475	133,492
Mortgage-backed securities
Available for sale (AFS)
Amortized Cost	4,273	9,295
Gross Unrealized Gains	51	182
Gross Unrealized Losses	(111)	(164)
Fair Value	4,213	9,313
Asset-backed securities
Available for sale (AFS)
Amortized Cost	0	109
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	0	109
State and political securities
Available for sale (AFS)
Amortized Cost	56,295	60,777
Gross Unrealized Gains	411	666
Gross Unrealized Losses	(198)	(509)
Fair Value	56,508	60,934
Other debt securities
Available for sale (AFS)
Amortized Cost	48,807	53,046
Gross Unrealized Gains	180	137
Gross Unrealized Losses	(1,080)	(2,065)
Fair Value	47,907	51,118
Total debt securities
Available for sale (AFS)
Amortized Cost	109,375	123,227
Gross Unrealized Gains	642	985
Gross Unrealized Losses	(1,389)	(2,738)
Fair Value	108,628	121,474
Financial institution equity securities
Available for sale (AFS)
Amortized Cost	13,868	9,566
Gross Unrealized Gains	728	969
Gross Unrealized Losses	0	0
Fair Value	14,596	10,535
Other equity securities
Available for sale (AFS)
Amortized Cost	1,300	1,667
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(49)	(184)
Fair Value	1,251	1,483
Total equity securities
Available for sale (AFS)
Amortized Cost	15,168	11,233
Gross Unrealized Gains	728	969
Gross Unrealized Losses	(49)	(184)
Fair Value	$ 15,847	$ 12,018

INVESTMENT SECURITIES - Amort62

INVESTMENT SECURITIES - Amortized Cost and Fair Value of Trading Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost	$ 212	$ 56
Gross Unrealized Gains	2	2
Gross Unrealized Losses	(24)	0
Fair Value	190	58
Financial institution equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost	20	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	20	0
Other equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Amortized Cost	192	56
Gross Unrealized Gains	2	2
Gross Unrealized Losses	(24)	0
Fair Value	$ 170	$ 58

INVESTMENT SECURITIES - Gross U

INVESTMENT SECURITIES - Gross Unrealized Gains (Losses) and Fair Value by Length of Time (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investment securities
Fair value, less than twelve months	$ 25,435	$ 58,552
Gross unrealized losses, less than twelve months	(313)	(1,934)
Fair value, twelve months or greater	33,811	16,623
Gross unrealized losses, twelve months or greater	(1,125)	(988)
Fair value, total	59,246	75,175
Gross unrealized losses, total	(1,438)	(2,922)
Mortgage-backed securities
Investment securities
Fair value, less than twelve months	981	3,572
Gross unrealized losses, less than twelve months	(12)	(106)
Fair value, twelve months or greater	2,276	3,627
Gross unrealized losses, twelve months or greater	(99)	(58)
Fair value, total	3,257	7,199
Gross unrealized losses, total	(111)	(164)
State and political securities
Investment securities
Fair value, less than twelve months	15,691	26,113
Gross unrealized losses, less than twelve months	(104)	(509)
Fair value, twelve months or greater	3,018	0
Gross unrealized losses, twelve months or greater	(94)	0
Fair value, total	18,709	26,113
Gross unrealized losses, total	(198)	(509)
Other debt securities
Investment securities
Fair value, less than twelve months	7,512	28,140
Gross unrealized losses, less than twelve months	(148)	(1,179)
Fair value, twelve months or greater	28,517	12,240
Gross unrealized losses, twelve months or greater	(932)	(886)
Fair value, total	36,029	40,380
Gross unrealized losses, total	(1,080)	(2,065)
Total debt securities
Investment securities
Fair value, less than twelve months	24,184	57,825
Gross unrealized losses, less than twelve months	(264)	(1,794)
Fair value, twelve months or greater	33,811	15,867
Gross unrealized losses, twelve months or greater	(1,125)	(944)
Fair value, total	57,995	73,692
Gross unrealized losses, total	(1,389)	(2,738)
Other equity securities
Investment securities
Fair value, less than twelve months	1,251	727
Gross unrealized losses, less than twelve months	(49)	(140)
Fair value, twelve months or greater	0	756
Gross unrealized losses, twelve months or greater	0	(44)
Fair value, total	1,251	1,483
Gross unrealized losses, total	(49)	(184)
Total equity securities
Investment securities
Fair value, less than twelve months	1,251	727
Gross unrealized losses, less than twelve months	(49)	(140)
Fair value, twelve months or greater	0	756
Gross unrealized losses, twelve months or greater	0	(44)
Fair value, total	1,251	1,483
Gross unrealized losses, total	$ (49)	$ (184)

INVESTMENT SECURITIES - Additio

INVESTMENT SECURITIES - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017USD ($)security	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Investments, Debt and Equity Securities [Abstract]
Number of individual securities that were in a continuous unrealized loss position for less than twelve months | security	37
Number of individual securities that were in a continuous unrealized loss position for greater than twelve months | security	22
Gross proceeds from sales of securities	$ 25,528,000	$ 44,829,000	$ 65,672,000
Impairment charges	0	0	$ 0
Carrying value of investment securities pledged	$ 89,736,000	$ 95,199,000

INVESTMENT SECURITIES - Amort65

INVESTMENT SECURITIES - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) $ in Thousands	Dec. 31, 2017USD ($)
Available for Sale, Amortized Cost
Due in one year or less	$ 4,696
Due after one year to five years	43,748
Due after five years to ten years	49,777
Due after ten years	11,154
Total amortized cost	109,375
Available for Sale, Fair Value
Due in one year or less	4,684
Due after one year to five years	43,609
Due after five years to ten years	49,063
Due after ten years	11,272
Total fair value	$ 108,628

INVESTMENT SECURITIES - Realize

INVESTMENT SECURITIES - Realized Gains and Losses on Sales of Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Gross realized gains and losses
Gross realized gains	$ 818	$ 1,905	$ 2,711
Gross realized losses	218	294	119
U.S. Government and agency securities
Gross realized gains and losses
Gross realized gains	0	11	0
Gross realized losses	0	5	0
Mortgage-backed securities
Gross realized gains and losses
Gross realized gains	69	35	0
Gross realized losses	0	13	0
State and political securities
Gross realized gains and losses
Gross realized gains	408	787	1,571
Gross realized losses	18	1	22
Other debt securities
Gross realized gains and losses
Gross realized gains	53	283	825
Gross realized losses	51	189	54
Financial institution equity securities
Gross realized gains and losses
Gross realized gains	288	572	183
Gross realized losses	0	0	0
Other equity securities
Gross realized gains and losses
Gross realized gains	0	217	132
Gross realized losses	$ 149	$ 86	$ 43

FEDERAL HOME LOAN BANK STOCK (D

FEDERAL HOME LOAN BANK STOCK (Details)	Dec. 31, 2017$ / shares
Federal Home Loan Banks [Abstract]
FHLB stock (in dollars per share)	$ 100

LOAN CREDIT QUALITY AND RELAT68

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017USD ($)categoryclassloancomponent	Dec. 31, 2016USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum amount to evaluate individual loans for possible impairment	$ 100,000
Maximum amount to evaluate individual loans for possible impairment on a case by case basis	$ 100,000
Payment delays period up to which loans are not classified as impaired, maximum (in days)	90 days
Period to classify TDR non performing loans to performing (in months)	6 months
Number of TDRs granted | loan	8	4
Amount of TDRs granted		$ 797,000
Number of categories considered not criticized and rated as Pass | category	6
Minimum period after which loans are considered as substandard (in days)	90 days
Number of components that represents the allowance for loan losses | component	2
Number of classes that groups of loans are collectively evaluated for impairment | class	2
Period considered for quarter moving average which used in calculating historical charge off (in months)	36 months
Adjustment of period considered for quarter moving average which used in calculating historical charge off (in months)	12 months
Increase of basis points	20.00%
Amount of foreclosed residential real estate held	$ 422,000	839,000
Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process	378,000	$ 167,000
Luzerne National Bank Corporation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum amount after which external annual loan review is performed	1,400,000
Jersey Shore State Bank
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum amount after which external annual loan review is performed	$ 1,600,000
Payment Concession
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs granted | loan	6
Amount of TDRs granted	$ 1,061,000
Rate Concession
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs granted | loan	1
Amount of TDRs granted	$ 273,000
Term Concession
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of TDRs granted | loan	1
Amount of TDRs granted	$ 52,000
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of categories in which real estate loans are segmented | category	3

LOAN CREDIT QUALITY AND RELAT69

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES - Aging Category of Loans, by Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Aging categories of loans by segment
Current	$ 1,229,330	$ 1,071,656
Past Due 30 To 89 Days	9,744	11,656
Past Due 90 Days Or More & Still Accruing	509	870
Non-Accrual	6,759	10,756
Total	1,246,342	1,094,938
Net deferred loan fees and discounts	272	(1,257)
Allowance for loan losses	(12,858)	(12,896)	$ (12,044)	$ (10,579)
Current loans, net	1,216,744	1,057,503
Loans, net	1,233,756	1,080,785
Commercial, Financial, and Agricultural
Aging categories of loans by segment
Current	178,022	145,179
Past Due 30 To 89 Days	663	785
Past Due 90 Days Or More & Still Accruing	86	14
Non-Accrual	114	132
Total	178,885	146,110
Allowance for loan losses	(1,177)	(1,554)	(1,532)	(1,124)
Residential Real Estate Mortgage
Aging categories of loans by segment
Current	588,278	553,053
Past Due 30 To 89 Days	6,853	9,112
Past Due 90 Days Or More & Still Accruing	318	587
Non-Accrual	1,628	1,988
Total	597,077	564,740
Allowance for loan losses	(5,679)	(5,383)	(5,116)	(3,755)
Commercial Real Estate Mortgage
Aging categories of loans by segment
Current	325,148	296,537
Past Due 30 To 89 Days	1,823	786
Past Due 90 Days Or More & Still Accruing	80	268
Non-Accrual	4,968	8,591
Total	332,019	306,182
Allowance for loan losses	(4,277)	(4,975)	(4,217)	(4,205)
Construction Real Estate Mortgage
Aging categories of loans by segment
Current	31,547	33,879
Past Due 30 To 89 Days	116	771
Past Due 90 Days Or More & Still Accruing	20	0
Non-Accrual	0	0
Total	31,683	34,650
Allowance for loan losses	(155)	(178)	(160)	(786)
Installment Loans to Individuals
Aging categories of loans by segment
Current	106,335	43,008
Past Due 30 To 89 Days	289	202
Past Due 90 Days Or More & Still Accruing	5	1
Non-Accrual	49	45
Total	106,678	43,256
Allowance for loan losses	$ (1,075)	$ (416)	$ (243)	$ (245)

LOAN CREDIT QUALITY AND RELAT70

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES - Interest Income if Interest Would Have Been Recorded (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Loan credit quality and related allowance for loan losses
Interest Income That Would Have Been Recorded Based on Original Term and Rate	$ 565	$ 656	$ 398
Interest Income Recorded on a Cash Basis	354	208	145
Commercial, Financial, and Agricultural
Loan credit quality and related allowance for loan losses
Interest Income That Would Have Been Recorded Based on Original Term and Rate	23	6	48
Interest Income Recorded on a Cash Basis	15	0	53
Residential Real Estate Mortgage
Loan credit quality and related allowance for loan losses
Interest Income That Would Have Been Recorded Based on Original Term and Rate	147	151	53
Interest Income Recorded on a Cash Basis	98	101	38
Commercial Real Estate Mortgage
Loan credit quality and related allowance for loan losses
Interest Income That Would Have Been Recorded Based on Original Term and Rate	390	496	281
Interest Income Recorded on a Cash Basis	238	105	54
Construction Real Estate Mortgage
Loan credit quality and related allowance for loan losses
Interest Income That Would Have Been Recorded Based on Original Term and Rate	0	0	16
Interest Income Recorded on a Cash Basis	0	0	0
Installment loans to individuals
Loan credit quality and related allowance for loan losses
Interest Income That Would Have Been Recorded Based on Original Term and Rate	5	3	0
Interest Income Recorded on a Cash Basis	$ 3	$ 2	$ 0

LOAN CREDIT QUALITY AND RELAT71

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES - Recorded Investment, Unpaid Principal Balance, and Related Allowance of Impaired Loans by Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Credit Quality and Related Allowance for Loan Losses
Recorded investment, with no related allowance recorded	$ 3,926	$ 3,526
Unpaid principal balance, with no related allowance recorded	3,926	3,526
Recorded investment, with an allowance recorded	10,520	12,450
Unpaid principal balance, with an allowance recorded	10,619	12,545
Recorded Investment	14,446	15,976
Unpaid Principal Balance	14,545	16,071
Related Allowance	2,184	2,179
Commercial, Financial, and Agricultural
Credit Quality and Related Allowance for Loan Losses
Recorded investment, with no related allowance recorded	1,033	109
Unpaid principal balance, with no related allowance recorded	1,033	109
Recorded investment, with an allowance recorded	235	132
Unpaid principal balance, with an allowance recorded	235	132
Recorded Investment	1,268	241
Unpaid Principal Balance	1,268	241
Related Allowance	96	74
Residential Real Estate Mortgage
Credit Quality and Related Allowance for Loan Losses
Recorded investment, with no related allowance recorded	1,428	1,584
Unpaid principal balance, with no related allowance recorded	1,428	1,584
Recorded investment, with an allowance recorded	2,304	1,893
Unpaid principal balance, with an allowance recorded	2,353	1,893
Recorded Investment	3,732	3,477
Unpaid Principal Balance	3,781	3,477
Related Allowance	367	437
Commercial Real Estate Mortgage
Credit Quality and Related Allowance for Loan Losses
Recorded investment, with no related allowance recorded	1,465	1,833
Unpaid principal balance, with no related allowance recorded	1,465	1,833
Recorded investment, with an allowance recorded	7,981	10,425
Unpaid principal balance, with an allowance recorded	8,031	10,520
Recorded Investment	9,446	12,258
Unpaid Principal Balance	9,496	12,353
Related Allowance	1,721	1,668
Construction Real Estate Mortgage
Credit Quality and Related Allowance for Loan Losses
Recorded investment, with no related allowance recorded	0	0
Unpaid principal balance, with no related allowance recorded	0	0
Recorded investment, with an allowance recorded	0	0
Unpaid principal balance, with an allowance recorded	0	0
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	$ 0	$ 0

LOAN CREDIT QUALITY AND RELAT72

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES - Average Recorded Investment in Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Investment in Impaired Loans	$ 15,516	$ 16,896	$ 21,995
Interest Income Recognized on an Accrual Basis on Impaired Loans	302	292	436
Interest Income Recognized on a Cash Basis on Impaired Loans	332	212	190
Commercial, Financial, and Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Investment in Impaired Loans	727	400	1,031
Interest Income Recognized on an Accrual Basis on Impaired Loans	41	16	21
Interest Income Recognized on a Cash Basis on Impaired Loans	7	1	10
Residential Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Investment in Impaired Loans	3,233	3,471	2,570
Interest Income Recognized on an Accrual Basis on Impaired Loans	75	89	72
Interest Income Recognized on a Cash Basis on Impaired Loans	91	101	47
Commercial Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Investment in Impaired Loans	11,551	12,887	17,529
Interest Income Recognized on an Accrual Basis on Impaired Loans	186	187	342
Interest Income Recognized on a Cash Basis on Impaired Loans	233	110	80
Construction Real Estate Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Investment in Impaired Loans	0	138	865
Interest Income Recognized on an Accrual Basis on Impaired Loans	0	0	1
Interest Income Recognized on a Cash Basis on Impaired Loans	0	$ 0	$ 53
Installment loans to individuals
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Investment in Impaired Loans	5
Interest Income Recognized on an Accrual Basis on Impaired Loans	0
Interest Income Recognized on a Cash Basis on Impaired Loans	$ 1

LOAN CREDIT QUALITY AND RELAT73

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES - Loan Modifications Considered TDRs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)contract	Dec. 31, 2016USD ($)contract
Troubled debt restructurings
Number of Contracts | contract	8	4
Pre-Modification Outstanding Recorded Investment	$ 1,386	$ 797
Post-Modification Outstanding Recorded Investment	$ 1,386	$ 797
Commercial, Financial, and Agricultural
Troubled debt restructurings
Number of Contracts | contract	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0
Post-Modification Outstanding Recorded Investment	$ 0	$ 0
Residential Real Estate Mortgage
Troubled debt restructurings
Number of Contracts | contract	6	3
Pre-Modification Outstanding Recorded Investment	$ 1,015	$ 397
Post-Modification Outstanding Recorded Investment	$ 1,015	$ 397
Commercial Real Estate Mortgage
Troubled debt restructurings
Number of Contracts | contract	2	1
Pre-Modification Outstanding Recorded Investment	$ 371	$ 400
Post-Modification Outstanding Recorded Investment	$ 371	$ 400
Construction Real Estate Mortgage
Troubled debt restructurings
Number of Contracts | contract	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0
Post-Modification Outstanding Recorded Investment	$ 0	$ 0

LOAN CREDIT QUALITY AND RELAT74

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES - Credit Quality Categories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Credit quality categories
Total	$ 1,246,342	$ 1,094,938
Commercial, Financial, and Agricultural
Credit quality categories
Total	178,885	146,110
Residential Real Estate Mortgage
Credit quality categories
Total	597,077	564,740
Commercial Real Estate Mortgage
Credit quality categories
Total	332,019	306,182
Construction Real Estate Mortgage
Credit quality categories
Total	31,683	34,650
Installment Loans to Individuals
Credit quality categories
Total	106,678	43,256
Pass
Credit quality categories
Total	1,218,853	1,057,602
Pass | Commercial, Financial, and Agricultural
Credit quality categories
Total	175,603	140,497
Pass | Residential Real Estate Mortgage
Credit quality categories
Total	593,828	561,440
Pass | Commercial Real Estate Mortgage
Credit quality categories
Total	311,209	277,916
Pass | Construction Real Estate Mortgage
Credit quality categories
Total	31,535	34,493
Pass | Installment Loans to Individuals
Credit quality categories
Total	106,678	43,256
Special Mention
Credit quality categories
Total	9,118	14,826
Special Mention | Commercial, Financial, and Agricultural
Credit quality categories
Total	738	2,943
Special Mention | Residential Real Estate Mortgage
Credit quality categories
Total	1,043	740
Special Mention | Commercial Real Estate Mortgage
Credit quality categories
Total	7,337	11,143
Special Mention | Construction Real Estate Mortgage
Credit quality categories
Total	0	0
Special Mention | Installment Loans to Individuals
Credit quality categories
Total	0	0
Substandard
Credit quality categories
Total	18,371	22,510
Substandard | Commercial, Financial, and Agricultural
Credit quality categories
Total	2,544	2,670
Substandard | Residential Real Estate Mortgage
Credit quality categories
Total	2,206	2,560
Substandard | Commercial Real Estate Mortgage
Credit quality categories
Total	13,473	17,123
Substandard | Construction Real Estate Mortgage
Credit quality categories
Total	148	157
Substandard | Installment Loans to Individuals
Credit quality categories
Total	$ 0	$ 0

LOAN CREDIT QUALITY AND RELAT75

LOAN CREDIT QUALITY AND RELATED ALLOWANCE FOR LOAN LOSSES - Allowance Activity (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016
Changes in allowance
Balance at the beginning of the period				$ 12,896				$ 12,044	$ 12,896	$ 12,044	$ 10,579
Charge-offs									(1,045)	(530)	(1,361)
Recoveries									277	186	526
Provision for loan losses	$ 125	$ 60	$ 215	330	$ 330	$ 258	$ 258	350	730	1,196	2,300
Balance at the end of the period	12,858				12,896				12,858	12,896	12,044
Allowance for Loan Losses:
Individually evaluated for impairment												$ 2,184	$ 2,179
Collectively evaluated for impairment												10,674	10,717
Total ending allowance balance	12,858			12,896	12,896			12,044	12,896	12,044	10,579	12,858	12,896
Loans:
Individually evaluated for impairment												14,446	15,976
Collectively evaluated for impairment												1,231,896	1,078,962
Total												1,246,342	1,094,938
Commercial, Financial, and Agricultural
Changes in allowance
Balance at the beginning of the period				1,554				1,532	1,554	1,532	1,124
Charge-offs									(106)	(167)	(283)
Recoveries									135	62	176
Provision for loan losses									(406)	127	515
Balance at the end of the period	1,177				1,554				1,177	1,554	1,532
Allowance for Loan Losses:
Individually evaluated for impairment												96	74
Collectively evaluated for impairment												1,081	1,480
Total ending allowance balance	1,177			1,554	1,554			1,532	1,554	1,532	1,124	1,177	1,554
Loans:
Individually evaluated for impairment												1,268	241
Collectively evaluated for impairment												177,617	145,869
Total												178,885	146,110
Residential Real Estate Mortgage
Changes in allowance
Balance at the beginning of the period				5,383				5,116	5,383	5,116	3,755
Charge-offs									(578)	(39)	(49)
Recoveries									55	15	81
Provision for loan losses									819	291	1,329
Balance at the end of the period	5,679				5,383				5,679	5,383	5,116
Allowance for Loan Losses:
Individually evaluated for impairment												367	437
Collectively evaluated for impairment												5,312	4,946
Total ending allowance balance	5,679			5,383	5,383			5,116	$ 5,383	$ 5,116	3,755	5,679	5,383
Loans:
Individually evaluated for impairment												3,732	3,477
Collectively evaluated for impairment												593,345	561,263
Total												597,077	564,740
Residential Real Estate Mortgage | Financing receivable | Owners of rental properties
Changes in allowance
Concentration of loans (as a percent)									15.16%	16.10%
Commercial Real Estate Mortgage
Changes in allowance
Balance at the beginning of the period				4,975				4,217	$ 4,975	$ 4,217	4,205
Charge-offs									(58)	(93)	(743)
Recoveries									1	8	182
Provision for loan losses									(641)	843	573
Balance at the end of the period	4,277				4,975				4,277	4,975	4,217
Allowance for Loan Losses:
Individually evaluated for impairment												1,721	1,668
Collectively evaluated for impairment												2,556	3,307
Total ending allowance balance	4,277			4,975	4,975			4,217	$ 4,975	$ 4,217	4,205	4,277	4,975
Loans:
Individually evaluated for impairment												9,446	12,258
Collectively evaluated for impairment												322,573	293,924
Total												332,019	306,182
Commercial Real Estate Mortgage | Financing receivable | Owners of rental properties
Changes in allowance
Concentration of loans (as a percent)									13.57%	14.18%
Construction Real Estate Mortgage
Changes in allowance
Balance at the beginning of the period				178				160	$ 178	$ 160	786
Charge-offs									0	(2)	(46)
Recoveries									9	9	23
Provision for loan losses									(32)	11	(603)
Balance at the end of the period	155				178				155	178	160
Allowance for Loan Losses:
Individually evaluated for impairment												0	0
Collectively evaluated for impairment												155	178
Total ending allowance balance	155			178	178			160	178	160	786	155	178
Loans:
Individually evaluated for impairment												0	0
Collectively evaluated for impairment												31,683	34,650
Total												31,683	34,650
Installment Loans to Individuals
Changes in allowance
Balance at the beginning of the period				416				243	416	243	245
Charge-offs									(303)	(229)	(240)
Recoveries									77	92	64
Provision for loan losses									885	310	174
Balance at the end of the period	1,075				416				1,075	416	243
Allowance for Loan Losses:
Individually evaluated for impairment												0	0
Collectively evaluated for impairment												1,075	416
Total ending allowance balance	1,075			416	416			243	416	243	245	1,075	416
Loans:
Individually evaluated for impairment												0	0
Collectively evaluated for impairment												106,678	43,256
Total												106,678	43,256
Unallocated
Changes in allowance
Balance at the beginning of the period				390				776	390	776	464
Charge-offs									0	0	0
Recoveries									0	0	0
Provision for loan losses									105	(386)	312
Balance at the end of the period	495				390				495	390	776
Allowance for Loan Losses:
Individually evaluated for impairment												0	0
Collectively evaluated for impairment												495	390
Total ending allowance balance	$ 495			$ 390	$ 390			$ 776	$ 390	$ 776	$ 464	$ 495	$ 390

PREMISES AND EQUIPMENT (Details

PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
PREMISES AND EQUIPMENT
Gross premises and equipment	$ 40,121	$ 35,491
Less accumulated depreciation and amortization	12,735	11,216
Net premises and equipment	27,386	24,275
Depreciation and amortization	2,632	3,146	$ 3,366
Land
PREMISES AND EQUIPMENT
Gross premises and equipment	7,107	6,400
Premises
PREMISES AND EQUIPMENT
Gross premises and equipment	20,808	18,568
Furniture and equipment
PREMISES AND EQUIPMENT
Gross premises and equipment	9,895	8,825
Leasehold improvements
PREMISES AND EQUIPMENT
Gross premises and equipment	2,311	1,698
Premises and Equipment
PREMISES AND EQUIPMENT
Depreciation and amortization	$ 1,659	$ 1,578	$ 1,564

GOODWILL AND OTHER INTANGIBLE77

GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying value	$ 17,380,000	$ 17,380,000
Accumulated amortization	276,000	276,000
Goodwill	17,104,000	17,104,000
Goodwill impairment loss	0	$ 0	$ 0
Core Deposit Intangible
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	598,000
Accumulated amortization	1,283,000
Trade Name Intangible
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	43,000
Accumulated amortization	90,000
Book of Business Intangible
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	821,000
Accumulated amortization	$ 199,000

GOODWILL AND OTHER INTANGIBLE78

GOODWILL AND OTHER INTANGIBLES - Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2017USD ($)
Core Deposits
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,018	$ 185
2,019	151
2,020	117
2,021	83
2,022	48
2,023	14
2,024	0
2,025	0
2,026	0
Finite-Lived Intangible Assets, Gross	598
Trade Names
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,018	13
2,019	11
2,020	8
2,021	6
2,022	4
2,023	1
2,024	0
2,025	0
2,026	0
Finite-Lived Intangible Assets, Gross	43
Book of Business
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,018	102
2,019	102
2,020	102
2,021	102
2,022	102
2,023	102
2,024	102
2,025	102
2,026	5
Finite-Lived Intangible Assets, Gross	$ 821

TIME DEPOSITS (Details)

TIME DEPOSITS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Time deposits of $250,000 or more	$ 43,262	$ 32,167
Interest expense related to time deposits of $100,000 or more	1,479	$ 1,305	$ 1,112
Scheduled maturities on time deposits of $100,000 or more
Three months or less	22,164
Three months to six months	10,354
Six months to twelve months	32,660
Over twelve months	60,889
Total	126,067
Total time deposit maturities
2,018	115,659
2,019	62,572
2,020	22,453
2,021	25,810
2,022	1,546
Thereafter	1,427
Total	$ 229,467

SHORT-TERM BORROWINGS - Schedul

SHORT-TERM BORROWINGS - Schedule of Short-term borrowings (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SHORT-TERM BORROWINGS
Balance at year end	$ 100,748,000	$ 13,241,000
Line of Credit
SHORT-TERM BORROWINGS
Additional lines of credit available from correspondent banks other than the FHLB	52,000,000
Repurchase Agreements
SHORT-TERM BORROWINGS
Balance at year end	7,878,000	13,241,000	$ 18,334,000
Maximum amount outstanding at any month end	13,782,000	17,827,000	18,614,000
Average balance outstanding during the year	$ 10,425,000	$ 15,394,000	$ 15,834,000
Weighted-average interest rate: At year end (as a percent)	0.13%	0.16%	0.21%
Weighted-average interest rate: Paid during the year (as a percent)	0.14%	0.18%	0.21%
Overnight
SHORT-TERM BORROWINGS
Balance at year end	$ 92,870,000	$ 0	$ 28,304,000
Maximum amount outstanding at any month end	92,870,000	24,000	42,760,000
Average balance outstanding during the year	$ 15,559,000	$ 3,000	$ 23,075,000
Weighted-average interest rate: At year end (as a percent)	1.54%	0.00%	0.43%
Weighted-average interest rate: Paid during the year (as a percent)	1.41%	0.57%	0.36%

SHORT-TERM BORROWINGS - Contrac

SHORT-TERM BORROWINGS - Contractual Maturity of Repurchase Agreements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Remaining Contractual Maturity of the Agreements
Short-term borrowings	$ 100,748	$ 13,241
Repurchase Agreements
Remaining Contractual Maturity of the Agreements
Short-term borrowings	7,878	13,241	$ 18,334
Overnight and Continuous
Remaining Contractual Maturity of the Agreements
Securities borrowed, gross including not subject to master netting arrangement	17,454	20,900
Overnight and Continuous | U.S. Government and agency securities
Remaining Contractual Maturity of the Agreements
Securities borrowed, gross including not subject to master netting arrangement	0	0
Overnight and Continuous | Mortgage-backed securities
Remaining Contractual Maturity of the Agreements
Securities borrowed, gross including not subject to master netting arrangement	1,898	6,684
Overnight and Continuous | Asset-backed securities
Remaining Contractual Maturity of the Agreements
Securities borrowed, gross including not subject to master netting arrangement	0	109
Overnight and Continuous | State and political securities
Remaining Contractual Maturity of the Agreements
Securities borrowed, gross including not subject to master netting arrangement	6,894	5,241
Overnight and Continuous | Other debt securities
Remaining Contractual Maturity of the Agreements
Securities borrowed, gross including not subject to master netting arrangement	$ 8,662	$ 8,866

LONG-TERM BORROWINGS - Long-ter

LONG-TERM BORROWINGS - Long-term Borrowings with FHLB by Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	$ 70,625	$ 85,625
Outstanding amount of long-term borrowings with the FHLB by contractual maturities
2,018	12,000
2,019	17,292
2,020	28,333
2,022	13,000
Total	$ 70,625
Weighted-Average Rate of outstanding long-term borrowings with the FHLB by contractual maturities
2018 (as a percent)	2.84%
2019 (as a percent)	1.59%
2020 (as a percent)	1.71%
2022 (as percent)	1.99%
Variable
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	$ 10,000	30,000
Variable | 2017
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	0	20,000
Variable | 2018
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	10,000	10,000
Fixed
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	60,625	55,625
Fixed | 2017
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	0	25,000
Fixed | 2018
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	2,000	2,000
Fixed | 2019
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	17,292	7,292
Fixed | 2020
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	28,333	18,333
Fixed | 2022
LONG-TERM BORROWINGS
Outstanding long-term borrowings with the FHLB by contractual maturities	$ 13,000	$ 3,000
Weighted Average
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.92%	2.21%
Weighted Average | Variable
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	3.18%	3.87%
Weighted Average | Variable | 2017
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	0.00%	4.22%
Weighted Average | Variable | 2018
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	3.18%	3.18%
Weighted Average | Fixed
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.72%	1.32%
Weighted Average | Fixed | 2017
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	0.00%	0.91%
Weighted Average | Fixed | 2018
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.13%	1.13%
Weighted Average | Fixed | 2019
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.59%	1.55%
Weighted Average | Fixed | 2020
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.71%	1.70%
Weighted Average | Fixed | 2022
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.99%	2.04%
Minimum | Variable | 2017
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	4.15%
Minimum | Variable | 2018
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	3.18%
Minimum | Fixed | 2017
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	0.90%
Minimum | Fixed | 2018
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.13%
Minimum | Fixed | 2019
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.54%
Minimum | Fixed | 2020
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.62%
Minimum | Fixed | 2022
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.98%
Maximum | Variable | 2017
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	4.28%
Maximum | Variable | 2018
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	3.18%
Maximum | Fixed | 2017
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	0.97%
Maximum | Fixed | 2018
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.13%
Maximum | Fixed | 2019
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.63%
Maximum | Fixed | 2020
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	1.79%
Maximum | Fixed | 2022
LONG-TERM BORROWINGS
Long-term borrowings with the FHLB, interest rate	2.04%

LONG-TERM BORROWINGS - Addition

LONG-TERM BORROWINGS - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
LONG-TERM BORROWINGS
FHLB adjustable rate as per the terms of convertible borrowings	three month London Interbank Offered Rate
Capital lease, carrying amount of land	$ 827	$ 827
Present value of minimum lease payments	$ 345	$ 373
Capital Lease Obligations
LONG-TERM BORROWINGS
Interest rate for capital lease obligation	2.75%
Revolving line of credit with the FHLB | Jersey Shore State Bank
LONG-TERM BORROWINGS
Remaining borrowing capacity	$ 235,868
Revolving line of credit with the FHLB | Luzerne National Bank Corporation
LONG-TERM BORROWINGS
Remaining borrowing capacity	$ 157,292
Minimum
LONG-TERM BORROWINGS
Conversion term of FHLB loans	3 months
Maximum
LONG-TERM BORROWINGS
Conversion term of FHLB loans	5 years

LONG-TERM BORROWINGS - Future M

LONG-TERM BORROWINGS - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Lease Payment
2,018	$ 38
2,019	38
2,020	38
2,021	38
2,022	37
Thereafter	200
Capital leases, future minimum payments due	389
Interest
2,018	9
2,019	9
2,020	8
2,021	7
2,022	6
Thereafter	5
Capital leases, future interest payments due	44
Present Value of Minimum Lease Payment
2,018	29
2,019	29
2,020	30
2,021	31
2,022	31
Thereafter	195
Present value of minimum lease payments	$ 345	$ 373

INCOME TAXES - Schedule of Defe

INCOME TAXES - Schedule of Deferred Tax Assets (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Allowance for loan losses	$ 2,714,000	$ 4,400,000
Deferred compensation	1,235,000	1,840,000
Defined Pension	684,000	1,450,000
Deferred Loan fees and discounts	211,000	320,000
Investment securities allowance	45,000	517,000
Unrealized loss on available for sale securities	14,000	329,000
Other	727,000	1,393,000
Total deferred tax assets	5,630,000	10,249,000
Deferred tax liabilities:
Investment security accretion	95,000	244,000
Depreciation	537,000	588,000
Amortization	610,000	1,020,000
Total deferred tax liabilities	1,242,000	1,852,000
Deferred tax asset, net	4,388,000	8,397,000
Valuation allowance	$ 0	$ 0

INCOME TAXES - Schedule of Comp

INCOME TAXES - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Provision or benefit for income taxes
Currently payable									$ 5,690	$ 3,054	$ 3,527
Deferred benefit									(955)	1,543	209
Change in corporate tax rate									2,724	0	0
Total provision	$ 3,968	$ 1,282	$ 1,223	$ 986	$ 1,290	$ 1,273	$ 1,152	$ 882	$ 7,459	$ 4,597	$ 3,736

INCOME TAXES - Schedule of Effe

INCOME TAXES - Schedule of Effective Income Tax Rate (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Amount:
Provision at expected rate									$ 5,859,000	$ 5,804,000	$ 5,996,000
(Decrease) increase in tax resulting from
Tax-exempt income									(811,000)	(1,092,000)	(1,492,000)
Tax credits									(177,000)	(312,000)	(737,000)
Change in corporate tax rate									2,724,000	0	0
Other, net									(136,000)	197,000	(31,000)
Total provision	$ 3,968,000	$ 1,282,000	$ 1,223,000	$ 986,000	$ 1,290,000	$ 1,273,000	$ 1,152,000	$ 882,000	$ 7,459,000	$ 4,597,000	$ 3,736,000
Effective Income Tax Rate Reconciliation, Percent:
Provision at expected rate (as a percent)									34.00%	34.00%	34.00%
(Decrease) increase in tax resulting from:
Tax-exempt income (as a percent)									(4.71%)	(6.40%)	(8.46%)
Tax credits (as a percent)									(1.03%)	(1.83%)	(4.17%)
Change in corporate tax rate (as a percent)									15.81%	0.00%	0.00%
Other, net (as a percent)									(0.78%)	1.16%	(0.18%)
Effective income tax provision (benefit) and rate (as a percent)									43.29%	26.93%	21.19%

EMPLOYEE BENEFIT PLANS - Additi

EMPLOYEE BENEFIT PLANS - Additional Information (Details)	12 Months Ended
	Dec. 31, 2017USD ($)age	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of consecutive years of service and average annual compensation on which benefits are based (in years)	5 years
Period of employment considered for benefit payments (in years)	10 years
Accumulated benefit obligation	$ 20,669,000	$ 19,289,000
Vesting period regarding employer contribution (in years)	5 years
Contribution expense	$ 369,000	215,000	$ 230,000
Period for which the company will make payments under the Deferred Compensation Plan (in years)	10 years
Threshold age of employees under the plan for company to make payments | age	65
Expenses incurred related to the plan	$ 330,000	303,000	252,000
Benefits paid under the plan	79,000	$ 85,000	$ 103,000
Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Expected contribution to Pension Plan	$ 500,000
Cash
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocation (as a percent)	2.50%
Fixed income securities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocation (as a percent)	15.00%
Equity
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocation (as a percent)	62.00%
Inflation Hedges/Real Assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocation (as a percent)	10.00%
Hedged Strategies
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Target allocation (as a percent)	10.00%

EMPLOYEE BENEFIT PLANS - Obliga

EMPLOYEE BENEFIT PLANS - Obligation and Funded Status (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in benefit obligation:
Benefit obligation at beginning of year	$ 19,289	$ 18,947
Interest cost	756	775	$ 757
Actuarial loss (gain)	159	139
Benefits paid	(782)	(800)
Curtailment gain	0	0
Other, change in actuarial assumptions	1,247	228
Benefit obligation at end of year	20,669	19,289	18,947
Change in plan assets:
Fair value of plan assets at beginning of year	15,090	14,223
Actual return on plan assets	2,424	910
Employer contribution	750	750
Benefits paid	(782)	(797)
Adjustment to fair value of plan assets	4	4
Fair value of plan assets at end of year	17,486	15,090	$ 14,223
Funded status	(3,183)	(4,199)
Accounts recognized on balance sheet as:
Total liabilities	(3,183)	(4,199)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Net loss	$ 6,227	$ 6,498

EMPLOYEE BENEFIT PLANS - Net Pe

EMPLOYEE BENEFIT PLANS - Net Periodic Costs and Other Amounts Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net periodic pension cost:
Service cost	$ 0	$ 55	$ 64
Interest cost	756	775	757
Expected return on plan assets	(926)	(989)	(983)
Amortization of unrecognized net loss	174	153	159
Net periodic benefit (cost)	$ 4	$ (6)	$ (3)

EMPLOYEE BENEFIT PLANS - Assump

EMPLOYEE BENEFIT PLANS - Assumptions (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract]
Discount rate (as a percent)	3.47%	3.98%	4.17%
Weighted-average assumptions used to determine net periodic cost
Discount rate (as a percent)	3.98%	4.17%	3.83%
Expected long-term return on plan assets (as a percent)	7.00%	7.00%	7.00%

EMPLOYEE BENEFIT PLANS - Weight

EMPLOYEE BENEFIT PLANS - Weighted Average Asset Allocations (Details)	Dec. 31, 2017	Dec. 31, 2016
Plan's asset allocations by asset category
Weighted-average asset allocations by asset category (as a percent)	100.00%	100.00%
Cash
Plan's asset allocations by asset category
Weighted-average asset allocations by asset category (as a percent)	4.96%	6.54%
Fixed income securities
Plan's asset allocations by asset category
Weighted-average asset allocations by asset category (as a percent)	11.42%	9.15%
Equity
Plan's asset allocations by asset category
Weighted-average asset allocations by asset category (as a percent)	66.90%	64.79%
Inflation Hedges/Real Assets
Plan's asset allocations by asset category
Weighted-average asset allocations by asset category (as a percent)	5.82%	5.55%
Hedged Strategies
Plan's asset allocations by asset category
Weighted-average asset allocations by asset category (as a percent)	10.90%	13.97%

EMPLOYEE BENEFIT PLANS - Fair V

EMPLOYEE BENEFIT PLANS - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	$ 17,486	$ 15,090	$ 14,223
Level I
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	17,486	15,090
Level II
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Level III
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	868	987
Cash and cash equivalents | Level I
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	868	987
Cash and cash equivalents | Level II
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Cash and cash equivalents | Level III
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Mutual funds - taxable fixed income
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	1,992	1,379
Mutual funds - taxable fixed income | Level I
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	1,992	1,379
Mutual funds - taxable fixed income | Level II
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Mutual funds - taxable fixed income | Level III
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Mutual funds - domestic equity
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	9,358	8,944
Mutual funds - domestic equity | Level I
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	9,358	8,944
Mutual funds - domestic equity | Level II
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Mutual funds - domestic equity | Level III
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Mutual funds - international equity
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	2,343	835
Mutual funds - international equity | Level I
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	2,343	835
Mutual funds - international equity | Level II
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Mutual funds - international equity | Level III
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Inflation Hedges/Real Assets
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	1,019	838
Inflation Hedges/Real Assets | Level I
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	1,019	838
Inflation Hedges/Real Assets | Level II
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Inflation Hedges/Real Assets | Level III
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Hedged Strategies
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	1,906	2,107
Hedged Strategies | Level I
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	1,906	2,107
Hedged Strategies | Level II
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	0	0
Hedged Strategies | Level III
Defined Benefit Plan Disclosure [Line Items]
Assets at fair value	$ 0	$ 0

EMPLOYEE BENEFIT PLANS - Future

EMPLOYEE BENEFIT PLANS - Future Benefit Payments (Details) $ in Thousands	Dec. 31, 2017USD ($)
Defined Benefit Plan [Abstract]
2,018	$ 838
2,019	874
2,020	907
2,021	898
2,022	918
Thereafter	5,249
Total	$ 9,684

STOCK OPTIONS - Additional Info

STOCK OPTIONS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 24, 2017	Aug. 27, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	70,000	38,750	70,000	0	38,750
Granted (in dollars per share)	$ 44.21	$ 42.03	$ 44.21	$ 0	$ 42.03
Vesting period (in years)		5 years
Expiration period (in years)		10 years
Options outstanding (in shares)		26,500	93,500	26,500	34,750	0
Allocated share-based compensation expense			$ 29	$ 19
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		5 years
Expiration period (in years)		10 years
Nonvested awards, compensation cost not yet recognized			$ 99
Period for recognition (in years)			2 years 10 months 28 days
Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	46,250		46,250
Granted (in dollars per share)	$ 44.21
Vesting period (in years)	3 years
Expiration period (in years)	10 years
Options outstanding (in shares)	43,250
Tranche One | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	23,750		23,750
Granted (in dollars per share)	$ 44.21
Vesting period (in years)	5 years
Expiration period (in years)	10 years
Options outstanding (in shares)	23,750
Tranche Two | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			5 years

STOCK OPTIONS - Stock Option Ac

STOCK OPTIONS - Stock Option Activity (Details) - USD ($)	Mar. 24, 2017	Aug. 27, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Shares
Options outstanding, beginning of period (in shares)			26,500	34,750	0
Granted (in shares)	70,000	38,750	70,000	0	38,750
Exercised (in shares)			0	0	0
Forfeited (in shares)		(12,250)	(3,000)	(8,250)	(4,000)
Expired (in shares)			0	0	0
Options outstanding, end of period (in shares)		26,500	93,500	26,500	34,750
Options exercisable at end of period (in shares)			0
Weighted Average Exercise Price
Options outstanding, weighted average exercise price, beginning of period (in dollars per share)			$ 42.03	$ 42.03	$ 0
Granted, weighted average exercise price (in dollars per share)	$ 44.21	$ 42.03	44.21	0	42.03
Exercised, weighted average exercise price (in dollars per share)			0	0	0
Forfeited, weighted average exercise price (in dollars per share)			44.21	42.03	42.03
Expired, weighted average exercise price (in dollars per share)			0	0	0
Options outstanding, weighted average exercise price, end of period (in dollars per share)			43.59	$ 42.03	$ 42.03
Options exercisable at end of period, weighted average exercise price (in dollars per share)			$ 0
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Options outstanding, weighted average remaining contractual terms (in years)			8 years 9 months 15 days	8 years 7 months 28 days	9 years 8 months 1 day
Options granted, weighted average remaining contractual terms (in years)				9 years 2 months 23 days	9 years 8 months 1 day
Aggregate intrinsic value			$ 279,365	$ 224,455	$ 14,943

STOCK OPTIONS - Stock Options G

STOCK OPTIONS - Stock Options Granted (Details) - $ / shares	Mar. 24, 2017	Aug. 27, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	70,000	38,750	70,000	0	38,750
Forfeited (in shares)		(12,250)	(3,000)	(8,250)	(4,000)
Outstanding (in shares)		26,500	93,500	26,500	34,750	0
Granted (in dollars per share)	$ 44.21	$ 42.03	$ 44.21	$ 0	$ 42.03
Vesting period (in years)		5 years
Expiration period (in years)		10 years
Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	46,250		46,250
Forfeited (in shares)	(3,000)
Outstanding (in shares)	43,250
Granted (in dollars per share)	$ 44.21
Vesting period (in years)	3 years
Expiration period (in years)	10 years
Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	23,750		23,750
Forfeited (in shares)	0
Outstanding (in shares)	23,750
Granted (in dollars per share)	$ 44.21
Vesting period (in years)	5 years
Expiration period (in years)	10 years

STOCK OPTIONS - Stock Option As

STOCK OPTIONS - Stock Option Assumptions (Details) - Employee Stock Option - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.90%	1.63%
Expected volatility	27.63%	31.58%
Expected dividend yield	4.20%	4.22%
Expected life (in years)	6 years 10 months 2 days	7 years 6 months 4 days
Weighted average grant date fair value per option (in dollars per share)	$ 0.75	$ 3.96

EMPLOYEE STOCK PURCHASE PLAN (D

EMPLOYEE STOCK PURCHASE PLAN (Details) - Employee Stock Purchase Plan ("Plan") - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares allowed to be purchased by employees (in shares)	1,000,000
Purchase price of the shares with respect to market value	95.00%
Maximum percentage of base compensation	15.00%
Maximum market value	$ 12,000
Number of shares issued under the plan (in shares)	2,230	2,125

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Directors and executive officers - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
RELATED PARTY TRANSACTIONS
Threshold ownership interest for principal owners (more than)	10.00%
Loan activity with executive officers, directors, principal shareholders, and associates of such persons
Beginning Balance	$ 8,877	$ 9,258
New Loans	13,147	5,875
Repayments	(3,013)	(6,256)
Ending Balance	19,011	8,877
Deposits from related parties	$ 21,700	$ 13,052

COMMITMENTS AND CONTINGENT L101

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Future minimum rental payments under operating leases with noncancellable terms in excess of one year
2,018	$ 599
2,019	480
2,020	463
2,021	369
2,022	261
Thereafter	1,246
Total	3,418
Rental expense for all operating leases	$ 584	$ 573	$ 591

OFF-BALANCE SHEET RISK (Details

OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Commitments to extend credit
Off Balance Sheet Risk
Contract amounts representing credit risk	$ 264,982	$ 263,487
Standby letters of credit
Off Balance Sheet Risk
Contract amounts representing credit risk	$ 10,406	6,515
Coverage period for instrument (in years)	1 year
Credit exposure from the sale of assets with recourse
Off Balance Sheet Risk
Contract amounts representing credit risk	$ 4,893	$ 6,341

CAPITAL REQUIREMENTS (Details)

CAPITAL REQUIREMENTS (Details) $ in Thousands	Dec. 31, 2017USD ($)category	Dec. 31, 2016USD ($)
Banking and Thrift [Abstract]
Capital categories established by FDICIA (in categories) | category	5
Common Equity Tier I Capital (to Risk-weighted Assets), Ratio
To Be Well Capitalized (as a percent)	6.50%
Total Capital (to Risk-weighted Assets), Ratio
To Be Well Capitalized (as a percent)	10.00%
Tier I Capital (to Risk-weighted Assets), Ratio
To Be Well Capitalized (as a percent)	8.00%
Tier I Capital (to Average Assets), Ratio
To Be Well Capitalized (as a percent)	5.00%
Jersey Shore State Bank
Common Equity Tier I Capital (to Risk-weighted Assets), Amount
Actual	$ 88,289	$ 86,397
For Capital Adequacy Purposes	39,259	34,914
Minimum To Maintain Capital Conservation Buffer	50,164	39,763
To Be Well Capitalized	$ 56,707	$ 50,431
Common Equity Tier I Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	10.12%	11.136%
For Capital Adequacy Purposes (as a percent)	4.50%	4.50%
Minimum To Maintain Capital Conservation Buffer (as a percent)	5.75%	5.125%
To Be Well Capitalized (as a percent)	6.50%	6.50%
Total Capital (to Risk-weighted Assets), Amount
Actual	$ 93,145	$ 90,992
For Capital Adequacy Purposes	69,791	62,069
Minimum To Maintain Capital Conservation Buffer	80,696	66,918
To Be Well Capitalized	$ 87,239	$ 77,587
Total Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	10.677%	11.728%
For Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Minimum To Maintain Capital Conservation Buffer (as a percent)	9.25%	8.625%
To Be Well Capitalized (as a percent)	10.00%	10.00%
Tier I Capital (to Risk-weighted Assets), Amount
Actual	$ 88,289	$ 86,397
For Capital Adequacy Purposes	52,345	46,552
Minimum To Maintain Capital Conservation Buffer	63,251	51,401
To Be Well Capitalized	$ 69,794	$ 62,069
Tier I Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	10.12%	11.136%
For Capital Adequacy Purposes (as a percent)	6.00%	6.00%
Minimum To Maintain Capital Conservation Buffer (as a percent)	7.25%	6.625%
To Be Well Capitalized (as a percent)	8.00%	8.00%
Tier I Capital (to Average Assets), Amount
Actual	$ 88,289	$ 86,397
For Capital Adequacy Purposes	42,885	38,856
To Be Well Capitalized	$ 53,606	$ 48,570
Tier I Capital (to Average Assets), Ratio
Actual (as a percent)	8.235%	8.894%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To Be Well Capitalized (as a percent)	5.00%	5.00%
Luzerne National Bank Corporation
Common Equity Tier I Capital (to Risk-weighted Assets), Amount
Actual	$ 31,116	$ 31,102
For Capital Adequacy Purposes	14,389	13,769
Minimum To Maintain Capital Conservation Buffer	18,386	15,682
To Be Well Capitalized	$ 20,785	$ 19,889
Common Equity Tier I Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	9.731%	10.165%
For Capital Adequacy Purposes (as a percent)	4.50%	4.50%
Minimum To Maintain Capital Conservation Buffer (as a percent)	5.75%	5.125%
To Be Well Capitalized (as a percent)	6.50%	6.50%
Total Capital (to Risk-weighted Assets), Amount
Actual	$ 32,533	$ 33,589
For Capital Adequacy Purposes	25,581	24,479
Minimum To Maintain Capital Conservation Buffer	29,578	26,391
To Be Well Capitalized	$ 31,977	$ 30,599
Total Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	10.174%	10.977%
For Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Minimum To Maintain Capital Conservation Buffer (as a percent)	9.25%	8.625%
To Be Well Capitalized (as a percent)	10.00%	10.00%
Tier I Capital (to Risk-weighted Assets), Amount
Actual	$ 31,116	$ 31,102
For Capital Adequacy Purposes	19,186	18,359
Minimum To Maintain Capital Conservation Buffer	23,183	20,272
To Be Well Capitalized	$ 25,581	$ 24,479
Tier I Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	9.731%	10.165%
For Capital Adequacy Purposes (as a percent)	6.00%	6.00%
Minimum To Maintain Capital Conservation Buffer (as a percent)	7.25%	6.625%
To Be Well Capitalized (as a percent)	8.00%	8.00%
Tier I Capital (to Average Assets), Amount
Actual	$ 31,116	$ 31,102
For Capital Adequacy Purposes	14,845	14,576
To Be Well Capitalized	$ 18,557	$ 18,220
Tier I Capital (to Average Assets), Ratio
Actual (as a percent)	8.384%	8.535%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To Be Well Capitalized (as a percent)	5.00%	5.00%
Penns Woods Bancorp, Inc
Common Equity Tier I Capital (to Risk-weighted Assets), Amount
Actual	$ 125,513	$ 125,804
For Capital Adequacy Purposes	50,187	44,849
Minimum To Maintain Capital Conservation Buffer	64,128	51,078
To Be Well Capitalized	$ 72,493	$ 64,782
Common Equity Tier I Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	11.254%	12.62%
For Capital Adequacy Purposes (as a percent)	4.50%	4.50%
Minimum To Maintain Capital Conservation Buffer (as a percent)	5.75%	5.125%
To Be Well Capitalized (as a percent)	6.50%	6.50%
Total Capital (to Risk-weighted Assets), Amount
Actual	$ 132,094	$ 133,393
For Capital Adequacy Purposes	89,223	79,732
Minimum To Maintain Capital Conservation Buffer	103,164	85,961
To Be Well Capitalized	$ 111,528	$ 99,665
Total Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	11.844%	13.38%
For Capital Adequacy Purposes (as a percent)	8.00%	8.00%
Minimum To Maintain Capital Conservation Buffer (as a percent)	9.25%	8.625%
To Be Well Capitalized (as a percent)	10.00%	10.00%
Tier I Capital (to Risk-weighted Assets), Amount
Actual	$ 125,513	$ 125,804
For Capital Adequacy Purposes	66,916	59,799
Minimum To Maintain Capital Conservation Buffer	80,857	66,028
To Be Well Capitalized	$ 89,222	$ 79,732
Tier I Capital (to Risk-weighted Assets), Ratio
Actual (as a percent)	11.254%	12.62%
For Capital Adequacy Purposes (as a percent)	6.00%	6.00%
Minimum To Maintain Capital Conservation Buffer (as a percent)	7.25%	6.625%
To Be Well Capitalized (as a percent)	8.00%	8.00%
Tier I Capital (to Average Assets), Amount
Actual	$ 125,513	$ 125,804
For Capital Adequacy Purposes	57,273	53,352
To Be Well Capitalized	$ 71,591	$ 66,691
Tier I Capital (to Average Assets), Ratio
Actual (as a percent)	8.766%	9.432%
For Capital Adequacy Purposes (as a percent)	4.00%	4.00%
To Be Well Capitalized (as a percent)	5.00%	5.00%

REGULATORY RESTRICTIONS (Detail

REGULATORY RESTRICTIONS (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Pennsylvania Banking Code
REGULATORY RESTRICTIONS
Regulatory lending limit	$ 16,914,000
Jersey Shore State Bank
Cash and Due from Banks
Reserves required by the district Federal Reserve Bank included in cash and due from banks	0	$ 0
Jersey Shore State Bank | Pennsylvania Banking Code
REGULATORY RESTRICTIONS
Balance in the additional paid in capital account unavailable for dividends	11,657,000
Luzerne National Bank Corporation
Cash and Due from Banks
Reserves required by the district Federal Reserve Bank included in cash and due from banks	0	$ 0
Luzerne National Bank Corporation | Pennsylvania Banking Code
REGULATORY RESTRICTIONS
Balance in the additional paid in capital account unavailable for dividends	$ 42,214,000

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value on a Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value Measurements
Investment securities available for sale, at fair value	$ 124,475	$ 133,492
Investment securities, trading	190	58
Mortgage-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value	4,213	9,313
Asset-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	109
State and political securities
Fair Value Measurements
Investment securities available for sale, at fair value	56,508	60,934
Other debt securities
Fair Value Measurements
Investment securities available for sale, at fair value	47,907	51,118
Financial institution equity securities
Fair Value Measurements
Investment securities available for sale, at fair value	14,596	10,535
Equity
Fair Value Measurements
Investment securities available for sale, at fair value	15,847	12,018
Level I
Fair Value Measurements
Investment securities available for sale, at fair value	15,847	12,018
Investment securities, trading	190	58
Level II
Fair Value Measurements
Investment securities available for sale, at fair value	108,628	121,474
Investment securities, trading	0
Level III
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Investment securities, trading	0
Recurring
Fair Value Measurements
Total assets	124,665	133,550
Recurring | Mortgage-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value	4,213	9,313
Recurring | Asset-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value		109
Recurring | State and political securities
Fair Value Measurements
Investment securities available for sale, at fair value	56,508	60,934
Recurring | Other debt securities
Fair Value Measurements
Investment securities available for sale, at fair value	47,907	51,118
Recurring | Financial institution equity securities
Fair Value Measurements
Investment securities available for sale, at fair value	14,596	10,535
Investment securities, trading	190	58
Recurring | Equity
Fair Value Measurements
Investment securities available for sale, at fair value	1,251	1,483
Recurring | Level I
Fair Value Measurements
Total assets	16,037	12,076
Recurring | Level I | Mortgage-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Recurring | Level I | Asset-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value		0
Recurring | Level I | State and political securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Recurring | Level I | Other debt securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Recurring | Level I | Financial institution equity securities
Fair Value Measurements
Investment securities available for sale, at fair value	14,596	10,535
Investment securities, trading	190	58
Recurring | Level I | Equity
Fair Value Measurements
Investment securities available for sale, at fair value	1,251	1,483
Recurring | Level II
Fair Value Measurements
Total assets	108,628	121,474
Recurring | Level II | Mortgage-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value	4,213	9,313
Recurring | Level II | Asset-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value		109
Recurring | Level II | State and political securities
Fair Value Measurements
Investment securities available for sale, at fair value	56,508	60,934
Recurring | Level II | Other debt securities
Fair Value Measurements
Investment securities available for sale, at fair value	47,907	51,118
Recurring | Level II | Financial institution equity securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Investment securities, trading		0
Recurring | Level II | Equity
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Recurring | Level III
Fair Value Measurements
Total assets	0	0
Recurring | Level III | Mortgage-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Recurring | Level III | Asset-backed securities
Fair Value Measurements
Investment securities available for sale, at fair value		0
Recurring | Level III | State and political securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Recurring | Level III | Other debt securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Recurring | Level III | Financial institution equity securities
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Investment securities, trading		0
Recurring | Level III | Equity
Fair Value Measurements
Investment securities available for sale, at fair value	0	0
Non-recurring | Impaired loans
Fair Value Measurements
Total assets	12,262	13,797
Non-recurring | Other real estate owned
Fair Value Measurements
Total assets	143	839
Non-recurring | Level I | Impaired loans
Fair Value Measurements
Total assets	0	0
Non-recurring | Level I | Other real estate owned
Fair Value Measurements
Total assets	0	0
Non-recurring | Level II | Impaired loans
Fair Value Measurements
Total assets	0	0
Non-recurring | Level II | Other real estate owned
Fair Value Measurements
Total assets	0	0
Non-recurring | Level III | Impaired loans
Fair Value Measurements
Total assets	12,262	13,797
Non-recurring | Level III | Other real estate owned
Fair Value Measurements
Total assets	$ 143	$ 839

FAIR VALUE MEASUREMENTS - List

FAIR VALUE MEASUREMENTS - List of Significant Unobservable Inputs (Details) - Non-recurring - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Impaired loans
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Fair Value	$ 12,262	$ 13,797
Other real estate owned
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Fair Value	143	839
Level III | Impaired loans
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Fair Value	$ 12,262	$ 13,797
Probability of default (as a percent)	0.00%	0.00%
Level III | Impaired loans | Discounted cash flow
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Fair Value	$ 6,583	$ 5,304
Level III | Impaired loans | Discounted cash flow | Minimum
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Temporary reduction in payment amount (as a percent)	3.00%	0.00%
Level III | Impaired loans | Discounted cash flow | Maximum
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Temporary reduction in payment amount (as a percent)	(70.00%)	(70.00%)
Level III | Impaired loans | Discounted cash flow | Weighted Average
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Temporary reduction in payment amount (as a percent)	(4.00%)	(20.00%)
Level III | Impaired loans | Appraisal of collateral (1)
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Fair Value	$ 5,679	$ 8,493
Level III | Impaired loans | Appraisal of collateral (1) | Minimum
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Appraisal adjustments (as a percent)	0.00%	0.00%
Level III | Impaired loans | Appraisal of collateral (1) | Maximum
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Appraisal adjustments (as a percent)	(20.00%)	(20.00%)
Level III | Impaired loans | Appraisal of collateral (1) | Weighted Average
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Appraisal adjustments (as a percent)	(17.00%)	(15.00%)
Level III | Other real estate owned
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Fair Value	$ 143	$ 839
Level III | Other real estate owned | Appraisal of collateral (1)
Listing of significant unobservable inputs used in the fair value measurement process for items valued utilizing level III techniques
Fair Value	$ 143	$ 839
Probability of default (as a percent)		(20.00%)
Appraisal adjustments (as a percent)		(20.00%)

FAIR VALUE OF FINANCIAL INST107

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investment securities
Investment securities available for sale, at fair value	$ 124,475	$ 133,492
Investment securities, trading	190	58
Bank-owned life insurance	27,982	27,332
Accrued interest receivable	4,321	3,672
Financial liabilities
Interest-bearing deposits	843,004	791,937
Noninterest-bearing deposits	303,316	303,277
Quoted Prices in Active Markets for Identical Assets (Level I)
Financial assets
Cash and cash equivalents	27,243	43,671
Investment securities
Investment securities available for sale, at fair value	15,847	12,018
Investment securities, trading	190	58
Loans held for sale	1,196	1,953
Loans, net	0	0
Bank-owned life insurance	27,982	27,332
Accrued interest receivable	4,321	3,672
Financial liabilities
Interest-bearing deposits	611,187	571,768
Noninterest-bearing deposits	303,316	303,277
Short-term borrowings	100,748	13,241
Long-term borrowings	0	0
Accrued interest payable	502	455
Significant Other Observable Inputs (Level II)
Financial assets
Cash and cash equivalents	0	0
Investment securities
Investment securities available for sale, at fair value	108,628	121,474
Investment securities, trading	0
Loans held for sale	0	0
Loans, net	0	0
Bank-owned life insurance	0	0
Accrued interest receivable	0	0
Financial liabilities
Interest-bearing deposits	0	0
Noninterest-bearing deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Accrued interest payable	0	0
Significant Unobservable Inputs (Level III)
Financial assets
Cash and cash equivalents	0	0
Investment securities
Investment securities available for sale, at fair value	0	0
Investment securities, trading	0
Loans held for sale	0	0
Loans, net	1,264,584	1,088,122
Bank-owned life insurance	0	0
Accrued interest receivable	0	0
Financial liabilities
Interest-bearing deposits	227,254	217,633
Noninterest-bearing deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	70,280	86,353
Accrued interest payable	0	0
Carrying Value
Financial assets
Cash and cash equivalents	27,243	43,671
Investment securities
Investment securities available for sale, at fair value	124,475	133,492
Investment securities, trading	190	58
Loans held for sale	1,196	1,953
Loans, net	1,233,756	1,080,785
Bank-owned life insurance	27,982	27,332
Accrued interest receivable	4,321	3,672
Financial liabilities
Interest-bearing deposits	843,004	791,937
Noninterest-bearing deposits	303,316	303,277
Short-term borrowings	100,748	13,241
Long-term borrowings	70,970	85,998
Accrued interest payable	502	455
Fair Value
Financial assets
Cash and cash equivalents	27,243	43,671
Investment securities
Investment securities available for sale, at fair value	124,475	133,492
Investment securities, trading	190	58
Loans held for sale	1,196	1,953
Loans, net	1,264,584	1,088,122
Bank-owned life insurance	27,982	27,332
Accrued interest receivable	4,321	3,672
Financial liabilities
Interest-bearing deposits	838,441	789,401
Noninterest-bearing deposits	303,316	303,277
Short-term borrowings	100,748	13,241
Long-term borrowings	70,280	86,353
Accrued interest payable	$ 502	$ 455

PARENT COMPANY ONLY FINANCIA108

PARENT COMPANY ONLY FINANCIAL STATEMENTS - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Investment in subsidiaries:
Other assets	$ 4,989	$ 6,052
TOTAL ASSETS	1,474,492	1,348,590
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Other liabilities	17,758	15,433
Shareholders’ equity	138,192	138,249
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	1,474,492	1,348,590
Penns Woods Bancorp, Inc
ASSETS:
Cash	132	578
Investment in subsidiaries:
Bank	131,637	129,421
Non-bank	5,685	8,037
Other assets	889	373
TOTAL ASSETS	138,343	138,409
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Other liabilities	149	160
Shareholders’ equity	138,194	138,249
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 138,343	$ 138,409

PARENT COMPANY ONLY FINANCIA109

PARENT COMPANY ONLY FINANCIAL STATEMENTS - Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating income:
NET INCOME	$ 717	$ 3,284	$ 3,086	$ 2,686	$ 2,948	$ 3,059	$ 3,390	$ 3,078	$ 9,773	$ 12,475	$ 13,898
Comprehensive income									10,545	11,346	11,766
Penns Woods Bancorp, Inc
Operating income:
Dividends from subsidiaries									11,352	10,007	11,367
Equity in undistributed earnings of subsidiaries									(908)	3,128	3,167
Operating expenses									(671)	(660)	(636)
NET INCOME									9,773	12,475	13,898
Comprehensive income									$ 10,545	$ 11,346	$ 11,766

PARENT COMPANY ONLY FINANCIA110

PARENT COMPANY ONLY FINANCIAL STATEMENTS - Condensed Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
OPERATING ACTIVITIES:
Net income	$ 717	$ 3,284	$ 3,086	$ 2,686	$ 2,948	$ 3,059	$ 3,390	$ 3,078	$ 9,773	$ 12,475	$ 13,898
Adjustments to reconcile net income to net cash provided by operating activities:
Other, net									2,200	(7)	(1,630)
Net cash provided by operating activities									17,693	16,113	15,735
FINANCING ACTIVITIES:
Dividends paid									(8,837)	(8,903)	(8,967)
Issuance of common stock									116	101	116
Purchase of treasury stock									(1,881)	(574)	(2,603)
Net cash provided by financing activities									112,983	15,534	64,676
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS									(16,428)	20,875	2,888
CASH AND CASH EQUIVALENTS, BEGINNING				43,671				22,796	43,671	22,796	19,908
CASH AND CASH EQUIVALENTS, ENDING	27,243				43,671				27,243	43,671	22,796
Penns Woods Bancorp, Inc
OPERATING ACTIVITIES:
Net income									9,773	12,475	13,898
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries									908	(3,128)	(3,167)
Other, net									(525)	344	(313)
Net cash provided by operating activities									10,156	9,691	10,418
FINANCING ACTIVITIES:
Dividends paid									(8,837)	(8,903)	(8,967)
Issuance of common stock									116	101	116
Purchase of treasury stock									(1,881)	(574)	(2,603)
Net cash provided by financing activities									(10,602)	(9,376)	(11,454)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS									(446)	315	(1,036)
CASH AND CASH EQUIVALENTS, BEGINNING				$ 578				$ 263	578	263	1,299
CASH AND CASH EQUIVALENTS, ENDING	$ 132				$ 578				$ 132	$ 578	$ 263

CONSOLIDATED QUARTERLY FINAN111

CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 13,138	$ 12,948	$ 12,209	$ 11,682	$ 11,758	$ 11,660	$ 11,669	$ 11,726
Interest expense	1,670	1,496	1,385	1,346	1,421	1,413	1,381	1,352	$ 5,897	$ 5,567	$ 5,219
NET INTEREST INCOME	11,468	11,452	10,824	10,336	10,337	10,247	10,288	10,374	44,080	41,246	40,905
Provision for loan losses	125	60	215	330	330	258	258	350	730	1,196	2,300
Non-interest income, excluding securities gains	2,483	2,442	2,775	2,452	2,415	2,821	2,686	2,522	10,744	12,113	12,765
Securities gains (losses), net	107	298	(12)	199	441	261	492	475
Non-interest expense	9,248	9,566	9,063	8,985	8,625	8,739	8,666	9,061	36,862	35,091	33,736
INCOME BEFORE INCOME TAX PROVISION	4,685	4,566	4,309	3,672	4,238	4,332	4,542	3,960	17,232	17,072	17,634
Income tax provision	3,968	1,282	1,223	986	1,290	1,273	1,152	882	7,459	4,597	3,736
NET INCOME	$ 717	$ 3,284	$ 3,086	$ 2,686	$ 2,948	$ 3,059	$ 3,390	$ 3,078	$ 9,773	$ 12,475	$ 13,898
Earnings per share - basic (in dollars per share)	$ 0.16	$ 0.70	$ 0.65	$ 0.57
Earnings per share - diluted (in dollars per share)	$ 0.15	$ 0.70	$ 0.65	$ 0.56
Earnings per share - basic and diluted (in dollars per share)					$ 0.62	$ 0.65	$ 0.72	$ 0.65	$ 2.08	$ 2.64	$ 2.91