First Keystone (FKYS) 10-K 15 Mar 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 01, 2016	Jun. 30, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Registrant Name	FIRST KEYSTONE CORP
Entity Central Index Key	737,875
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			$ 125,857,750
Trading Symbol	FKYS
Entity Common Stock, Shares Outstanding		5,620,205

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 7,474	$ 7,543
Interest-bearing deposits in other banks	1,534	424
Total cash and cash equivalents	9,008	7,967
Time deposits with other banks	1,482	1,482
Investment securities available-for-sale	385,241	347,666
Investment securities held-to-maturity (fair value 2015 - $27; 2014 - $1,060)	26	1,056
Restricted investment in bank stocks	5,742	5,308
Loans	516,610	487,461
Allowance for loan losses	(6,739)	(6,390)
Net loans	509,871	481,071
Premises and equipment, net	20,113	20,871
Accrued interest receivable	4,086	3,313
Cash surrender value of bank owned life insurance	21,900	21,236
Investments in low-income housing partnerships	1,553	1,130
Goodwill	19,133	19,133
Core deposit intangible, net	0	122
Foreclosed assets held for resale	1,472	55
Deferred income taxes	692	0
Other assets	3,170	1,943
TOTAL ASSETS	983,489	912,353
Deposits:
Non-interest bearing	107,391	96,530
Interest bearing	613,207	565,032
Total deposits	720,598	661,562
Short-term borrowings	80,539	73,123
Long-term borrowings	70,232	65,339
Accrued interest payable	382	399
Deferred income taxes	0	211
Other liabilities	3,300	5,448
TOTAL LIABILITIES	875,051	806,082
STOCKHOLDERS’ EQUITY
Preferred stock, par value $2.00 per share; authorized 1,000,000 shares in 2015 and 2014; issued 0 in 2015 and 2014	0	0
Common stock, par value $2.00 per share; authorized 20,000,000 shares in 2015 and 2014; issued 5,853,317 in 2015 and 5,802,521 in 2014; outstanding 5,620,205 in 2015 and 5,567,372 in 2014	11,707	11,605
Surplus	33,830	32,674
Retained earnings	66,622	63,485
Accumulated other comprehensive income	2,035	4,330
Treasury stock, at cost, 233,112 shares in 2015 and 235,149 shares in 2014	(5,756)	(5,823)
TOTAL STOCKHOLDERS’ EQUITY	108,438	106,271
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 983,489	$ 912,353

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investment securities held-to-maturity, estimated fair value	$ 27	$ 1,060
Preferred stock, par value (in dollars per share)	$ 2	$ 2
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 2	$ 2
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	5,853,317	5,802,521
Common stock, shares outstanding	5,620,205	5,567,372
Treasury stock, shares	233,112	235,149

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
INTEREST INCOME
Interest and fees on loans	$ 21,607	$ 20,545	$ 20,471
Interest and dividend income on investment securities:
Taxable	6,464	7,781	6,843
Tax-exempt	3,131	2,366	3,533
Dividends	62	69	61
Dividend income on restricted investment in bank stocks	415	252	35
Interest on interest-bearing deposits in other banks	32	6	18
Total interest income	31,711	31,019	30,961
INTEREST EXPENSE
Interest on deposits	3,159	2,953	3,623
Interest on short-term borrowings	264	215	105
Interest on long-term borrowings	1,543	1,284	1,226
Total interest expense	4,966	4,452	4,954
Net interest income	26,745	26,567	26,007
Provision for loan losses	2,277	433	1,372
Net interest income after provision for loan losses	24,468	26,134	24,635
NON-INTEREST INCOME
Trust department	877	921	841
Service charges and fees	1,773	1,614	1,402
Bank owned life insurance income	664	680	687
ATM fees and debit card income	1,224	1,123	1,000
Gains on sales of mortgage loans	548	284	618
Net investment securities gains	2,131	2,756	2,900
Impairment charges on equity securities	(14)	0	0
Other	494	524	357
Total non-interest income	7,697	7,902	7,805
NON-INTEREST EXPENSE
Salaries and employee benefits	11,012	11,475	10,929
Occupancy, net	1,655	1,677	1,523
Furniture and equipment	602	585	641
Computer expense	827	1,072	1,062
Professional services	609	615	534
Pennsylvania shares tax	712	635	782
FDIC insurance	532	505	422
ATM and debit card fees	600	578	529
Data processing fees	571	300	0
Foreclosed assets held for resale expense	111	80	41
Advertising	476	569	441
FHLB prepayment penalties	0	0	345
Other	3,315	3,117	2,693
Total non-interest expense	21,022	21,208	19,942
Income before income tax expense	11,143	12,828	12,498
Income tax expense	1,971	2,617	2,225
NET INCOME	$ 9,172	$ 10,211	$ 10,273
Net income per share:
Basic	$ 1.64	$ 1.84	$ 1.87
Diluted	1.64	1.84	1.87
Dividends per share	$ 1.08	$ 1.05	$ 1.04

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net Income		$ 9,172	$ 10,211	$ 10,273
Other comprehensive income (loss):
Unrealized net holding gains (losses) on available-for-sale investment securities arising during the period, net of income taxes of $(466), $3,192 and $(5,439), respectively		(898)	6,191	(10,668)
Less reclassification adjustment for net gains included in net income, net of income taxes of $(725), $(949) and $(986), respectively	[1],[2]	(1,406)	(1,807)	(1,914)
Less reclassification adjustment for impairment charges on equity securities included in net income, net of income taxes of $5, $0 and $0, respectively	[2],[3]	9	0	0
Total other comprehensive income (loss)		(2,295)	4,384	(12,582)
Total Comprehensive Income (Loss)		$ 6,877	$ 14,595	$ (2,309)
[1]	Gross amounts are included in net investment securities gains on the Consolidated Statements of Income in non-interest income.
[2]	Income tax amounts are included in income tax expense on the Consolidated Statements of Income.
[3]	Gross amounts are included in impairment charges on equity securities on the Consolidated Statements of Income in non-interest income.

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Parenthetical] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ (466)	$ 3,192	$ (5,439)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	(725)	(949)	(986)
Other Comprehensive Income Loss, Reclassification Adjustment For Impairment Charge From AOCI for Sale of Securities, Tax	$ 5	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2012	$ 103,330	$ 11,435	$ 30,725	$ 54,532	$ 12,528	$ (5,890)
Balance (in shares) at Dec. 31, 2012		5.717400
Net Income	10,273			10,273
Other comprehensive income (loss), net of taxes	(12,582)				(12,582)
Issuance of common stock under dividend reinvestment plan and exercise of employee stock options	1,046	$ 78	901			67
Issuance of common stock under dividend reinvestment plan and exercise of employee stock options (in shares)		39,074
Dividends	(5,716)			(5,716)
Balance at Dec. 31, 2013	96,351	$ 11,513	31,626	59,089	(54)	(5,823)
Balance (in shares) at Dec. 31, 2013		5,756,474
Net Income	10,211			10,211
Other comprehensive income (loss), net of taxes	4,384				4,384
Issuance of common stock under dividend reinvestment plan and exercise of employee stock options	1,140	$ 92	1,048
Issuance of common stock under dividend reinvestment plan and exercise of employee stock options (in shares)		46,047
Dividends	(5,815)			(5,815)
Balance at Dec. 31, 2014	106,271	$ 11,605	32,674	63,485	4,330	(5,823)
Balance (in shares) at Dec. 31, 2014		5,802,521
Net Income	9,172			9,172
Other comprehensive income (loss), net of taxes	(2,295)				(2,295)
Issuance of common stock under dividend reinvestment plan and exercise of employee stock options	1,325	$ 102	1,156			67
Issuance of common stock under dividend reinvestment plan and exercise of employee stock options (in shares)		50,796
Dividends	(6,035)			(6,035)
Balance at Dec. 31, 2015	$ 108,438	$ 11,707	$ 33,830	$ 66,622	$ 2,035	$ (5,756)
Balance (in shares) at Dec. 31, 2015		5,853,317

CONSOLIDATED STATEMENTS OF CHA8

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Parenthetical] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash dividends, per share	$ 1.08	$ 1.05	$ 1.04

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net income	$ 9,172	$ 10,211	$ 10,273
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	2,277	433	1,372
Depreciation and amortization	1,476	1,626	1,530
Net premium amortization on investment securities	2,930	1,591	1,812
Deferred income tax expense (benefit)	283	46	(260)
Gains on sales of mortgage loans	(515)	(266)	(600)
Gains on sales of mortgage loans held for investment transferred to held for sale	(33)	(18)	(18)
Proceeds from sales of mortgage loans originated for resale	19,791	11,256	26,271
Originations of mortgage loans originated for resale	(18,251)	(12,141)	(24,983)
Gains on sales of investment securities	(2,131)	$ (2,756)	$ (2,900)
Impairment charges on equity securities	14
Losses (gains) on sales of foreclosed real estate held for resale, including write-downs	34	$ (28)	$ (70)
(Increase) decrease in accrued interest receivable	(773)	303	444
Earnings on investment in bank owned life insurance	(664)	(680)	(687)
Losses on disposals of premises and equipment	31	30	147
(Increase) decrease in other assets	(1,191)	375	846
(Decrease) increase in accrued interest payable	(17)	7	(2,836)
(Decrease) increase in other liabilities	(2,148)	(2,913)	2,618
NET CASH PROVIDED BY OPERATING ACTIVITIES	10,285	7,076	12,959
INVESTING ACTIVITIES
Proceeds from sales of investment securities available-for-sale	111,799	195,847	79,981
Proceeds from maturities and redemptions of investment securities available-for-sale	21,759	37,443	43,944
Purchases of investment securities available-for-sale	(175,427)	(217,140)	(196,281)
Proceeds from maturities and redemptions of investment securities held-to-maturity	1,030	16	1,486
Net increase in time deposits with other banks	0	(1,482)	0
Net change in restricted investment in bank stocks	(434)	(547)	122
Net increase in loans	(34,397)	(41,347)	(16,068)
Proceeds from sales of mortgage loans held for investment transferred to held for sale	940	834	802
Purchases of premises and equipment	(544)	(664)	(3,356)
Purchase of investment in real estate ventures	(590)	0	0
Proceeds from sales of foreclosed assets held for resale	21	715	492
NET CASH USED IN INVESTING ACTIVITIES	(75,843)	(26,325)	(88,878)
FINANCING ACTIVITIES
Net increase (decrease) in deposits	59,036	(28,513)	81,241
Net increase in short-term borrowings	7,416	4,890	13,164
Proceeds from long-term borrowings	5,000	30,000	10,000
Repayment of long-term borrowings	(107)	(5,090)	(14,091)
Common stock issued	1,252	1,121	981
Proceeds from issuance of treasury stock	37	0	43
Dividends paid	(6,035)	(5,815)	(5,716)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	66,599	(3,407)	85,622
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,041	(22,656)	9,703
CASH AND CASH EQUIVALENTS, BEGINNING	7,967	30,623	20,920
CASH AND CASH EQUIVALENTS, ENDING	9,008	7,967	30,623
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	4,983	4,445	5,090
Income taxes paid	2,631	2,324	1,916
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES
Purchased securities settling after quarter end	0	2,327	2,946
Loans transferred to foreclosed assets held for resale	1,472	262	434
Loans transferred to held-for-sale portfolio	730	1,047	1,161
Loans transferred from held for sale portfolio	0	0	(3,478)
Common stock subscription receivable	$ 36	$ 19	$ 22

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies [Text Block]	NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of First Keystone Corporation and Subsidiary (the “Corporation”) are in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to common practices within the banking industry. The more significant accounting policies follow: The consolidated financial statements include the accounts of First Keystone Corporation and its wholly-owned subsidiary, First Keystone Community Bank (the “Bank”). All significant inter-company balances and transactions have been eliminated in consolidation. The Corporation, headquartered in Berwick, Pennsylvania, provides a full range of banking, trust and related services through its wholly-owned Bank subsidiary and is subject to competition from other financial institutions in connection with these services. The Bank serves a customer base which includes individuals, businesses, governments, and public and institutional customers primarily located in the Northeast Region of Pennsylvania. The Bank has 18 20 The Corporation’s subsidiary acts as an independent community financial services provider, and offers traditional banking and related financial services to individual, business, government, and public and institutional customers. Through its branch and ATM network, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of other financial services. The Bank also performs personal, corporate, pension and fiduciary services through its Trust Department. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, trust and mortgage banking operations of the Corporation. As such, discrete financial information is not available and segment reporting would not be meaningful. The majority of the Corporation’s activities involve customers located primarily in Columbia, Luzerne, Montour and Monroe counties in Pennsylvania. The types of securities in which the Corporation invests are presented in Note 3 – Investment Securities. Credit risk as it relates to investment activities is moderated through the monitoring of ratings and geographic concentrations residing in the portfolio and the observance of minimum rating levels in the investment policy. Note 4 – Loans and Allowance for Loan Losses summarizes the types of lending in which the Corporation engages. The inherent risks associated with lending activities are mitigated by adhering to conservative underwriting practices and policies, as well as portfolio diversification and thorough monitoring of the loan portfolio. It is management’s opinion that the investment and loan portfolios were well balanced at December 31, 2015, to the extent necessary to avoid any significant concentrations of credit risk. The preparation of these consolidated financial statements, in conformity with accounting principles generally accepted in the United States of America, 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 these consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include the determination of other-than-temporary impairment on securities and the determination of the allowance for loan losses. The Corporation has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of December 31, 2015, for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation considers cash classified as interest-bearing deposits with other banks as a cash equivalent since they are represented by cash accounts essentially on a demand basis and mature within one year. Federal funds are also included as a cash equivalent because they are generally purchased and sold for one-day periods. Time deposits with other banks consist of fully insured certificates of deposit in other banks with maturity dates between one and five years. The Corporation classifies its investment securities as either “Held-to-Maturity” or “Available-for-Sale” at the time of purchase. Investment securities are accounted for on a trade date basis. Debt securities are classified as Held-to-Maturity when the Corporation has the ability and positive intent to hold the securities to maturity. Investment securities classified as Held-to-Maturity are carried at cost adjusted for amortization of premium and accretion of discount to maturity. Debt securities not classified as Held-to-Maturity and equity securities are included in the Available-for-Sale category and are carried at fair value. The amount of any unrealized gain or loss, net of the effect of deferred income taxes, is reported as accumulated other comprehensive income (loss) in the Consolidated Balance Sheets and Consolidated Statements of Changes in Stockholders’ Equity. Management’s decision to sell Available-for-Sale securities is based on changes in economic conditions controlling the sources and applications of funds, terms, availability of and yield of alternative investments, interest rate risk and the need for liquidity. The cost of debt securities classified as Held-to-Maturity or Available-for-Sale is adjusted for amortization of premiums and accretion of discounts to expected maturity. Such amortization and accretion, as well as interest and dividends, are included in interest and dividend income on investment securities. Realized gains and losses are included in net investment securities gains and losses. The cost of investment securities sold, redeemed or matured is based on the specific identification method. The Bank owns restricted stock investments in the Federal Home Loan Bank of Pittsburgh (“FHLB-Pittsburgh”) and Atlantic Community Bankers Bank (“ACBB”). These investments do not have a readily determinable fair value because their ownership is restricted and they can be sold back only to the FHLB-Pittsburgh, ACBB or to another member institution. Therefore, these investments are carried at cost. At December 31, 2015, the Corporation held $ 5,707,000 35,000 5,273,000 35,000 Management evaluates the restricted investment in bank stocks for impairment on an annual basis. Management’s determination of whether these investments are impaired is based on management’s assessment of the ultimate recoverability of the cost of these investments rather than by recognizing temporary declines in value. The following factors were evaluated to determine the ultimate recoverability of the cost of the Corporation’s restricted investment in bank stocks; (i) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted; (ii) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank; (iii) the impact of legislative and regulatory changes on the institutions and, accordingly, on the customer base of the correspondent bank; and (iv) the liquidity position of the correspondent bank. Based on the analysis of these factors, management determined that no impairment charge was necessary related to the restricted investment in bank stocks during 2015, 2014 or 2013. Net loans are stated at their outstanding unpaid principal balances, net of deferred fees or costs, unearned income and the allowance for loan losses. Interest on loans is recognized as income over the term of each loan, generally, by the accrual method. Loan origination fees and certain direct loan origination costs have been deferred with the net amount amortized using the straight line method or the interest method over the contractual life of the related loans as an interest yield adjustment. Residential mortgage loans held for resale are carried at the lower of cost or market on an aggregate basis determined by independent pricing from appropriate federal or state agency investors. These loans are sold without recourse. The loans receivable portfolio is segmented into commercial, residential and consumer loans. Commercial loans consist of the following classes: Commercial and Industrial and Commercial Real Estate. Commercial and Industrial Lending The Corporation originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and are reviewed annually. Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum thresholds have been established by the Corporation and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, business financial statements, collateral appraisals, etc. Commercial and industrial loans are typically secured by personal guarantees of the borrower. In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower's character and capacity to repay the loan, the adequacy of the borrower's capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower's past, present and future cash flows is also an important aspect of the Corporation's analysis of the borrower’s ability to repay. Commercial and industrial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from cash flows from the borrower’s primary business activities. As a result, the availability of funds for the repayment of commercial and industrial loans is dependent on the success of the business itself, which in turn, is likely to be dependent upon the general economic environment. Commercial Real Estate Lending The Corporation engages in commercial real estate lending in its primary market area and surrounding areas. The Corporation’s commercial real estate portfolio is secured primarily by commercial retail space, commercial office buildings, residential housing and hotels. Generally, commercial real estate loans have terms that do not exceed twenty years, have loan-to-value ratios of up to eighty percent of the value of the collateral property, and are typically secured by personal guarantees of the borrowers. In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. The value of the property is determined by either independent appraisers or internal evaluations by Bank officers. Commercial real estate loans generally present a higher level of risk than residential real estate secured loans. Repayment of loans secured by commercial real estate is typically dependent upon the successful operation of the related real estate project and/or the effect of the general economic conditions on income producing properties. Residential Real Estate Lending (Including Home Equity) The Corporation’s residential real estate portfolio is comprised of one-to-four family residential mortgage loan originations, home equity term loans and home equity lines of credit. These loans are generated by the Corporation’s marketing efforts, its present customers, walk-in customers and referrals. These loans originate primarily within or with customers from the Corporation’s market area. The Corporation’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The Corporation offers fixed-rate mortgage loans with terms up to a maximum of twenty years for both permanent structures and those under construction. Generally, the majority of the Corporation’s residential mortgage loans originate with a loan-to-value of eighty percent or less, or those with primary mortgage insurance at ninety-five percent or less. Generally, home equity term loans are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of fifteen years. Generally, home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of twenty years. In underwriting one-to-four family residential mortgage loans, the Corporation evaluates the borrower’s ability to make monthly payments, the borrower’s repayment history and the value of the property securing the loan. The ability and willingness to repay is determined by the borrower’s employment history, current financial conditions and credit background. A majority of the properties securing residential real estate loans made by the Corporation are appraised by independent appraisers. The Corporation generally requires mortgage loan borrowers to obtain an attorney’s title opinion or title insurance and fire and property insurance, including flood insurance, if applicable. Residential mortgage loans, home equity term loans and home equity lines of credit generally present a lower level of risk than consumer loans because they are secured by the borrower’s primary residence. Risk is increased when the Corporation is in a subordinate position, especially to another lender, for the loan collateral. Consumer Lending The Corporation offers a variety of secured and unsecured consumer loans, including vehicle loans, stock loans and loans secured by financial institution deposits. These loans originate primarily within or with customers from the market area. Consumer loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis is performed regarding the borrower’s willingness and financial ability to repay the loan as agreed. The ability to repay is determined by the borrower’s employment history, current financial condition and credit background. Consumer loans may entail greater credit risk than residential real estate loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and therefore, are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. Generally, a loan is considered to be past-due when scheduled loan payments are in arrears 10 Commercial and Industrial and Commercial Real Estate loans are charged off in whole or in part when they become sufficiently delinquent based upon the terms of the underlying loan contract and when a collateral deficiency exists. Because all or part of the contractual cash flows are not expected to be collected, the loan is considered to be impaired, and the Bank estimates the impairment based on its analysis of the cash flows or collateral estimated at fair value less cost to sell. Residential Real Estate and Consumer loans are charged off when they become sufficiently delinquent based upon the terms of the underlying loan contract and when the value of the underlying collateral is not sufficient to support the loan balance and a loss is expected. At that time, the amount of estimated collateral deficiency, if any, is charged off for loans secured by collateral, and all other loans are charged off in full. Loans with collateral are charged down to the estimated fair value of the collateral less cost to sell. Loans in which the borrower is in bankruptcy are considered on a case by case basis and are either charged off or reaffirmed by the borrower. Generally, a loan is classified as non-accrual and the accrual of interest on such a loan is discontinued when the contractual payment of principal or interest has become 90 The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is maintained at a level estimated by management to be adequate to absorb potential loan losses. Management’s periodic evaluation of the adequacy of the allowance for loan losses is based on the Corporation’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are individually classified as impaired. Select loans are not aggregated for collective impairment evaluation, as such; all loans are subject to individual impairment evaluation should the facts and circumstances pertinent to a particular loan suggest that such evaluation is necessary. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan is impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from collateral. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loans may be reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component covers all other loans not identified as impaired and is based on historical losses and qualitative factors. The historical loss component of the allowance is determined by losses recognized by portfolio segment over a time period that management has determined represents the current credit cycle. Qualitative factors impacting each portfolio segment may include: delinquency trends, loan volume trends, Bank policy changes, management processes and oversight, economic trends (including change in consumer and business disposable incomes, unemployment and under-employment levels, and other conditions), concentrations by industry or product, internal and external loan review processes, collateral value and market conditions, and external factors including regulatory issues and competition. The unallocated component of the allowance is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A reserve for unfunded lending commitments is provided for possible credit losses on off-balance sheet credit exposures. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and, if necessary, is recorded in other liabilities on the Consolidated Balance Sheet. As of December 31, 2015 and 2014, the amount of the reserve for unfunded lending commitments was $ 184,000 0 The Corporation is subject to periodic examination by its federal and state examiners, and may be required by such regulators to recognize additions to the allowance for loan losses based on their assessment of credit information available to them at the time of their examinations. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Under current accounting standards, the allowance for loan losses related to impaired loans is based on discounted cash flows using the loan’s effective interest rate at inception or the fair value of the collateral for certain collateral dependent loans. The restructuring of a loan is considered a “troubled debt restructuring” if both the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the Bank has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, and (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan. A less common concession is the forgiveness of a portion of the principal. The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. Loans modified in a troubled debt restructuring are considered impaired and may or may not be placed on non-accrual status until the Bank determines the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrates a period of performance according to the restructured terms of six months. The Bank utilizes a risk grading matrix as a tool for managing credit risk in the loan portfolio and assigns an asset quality rating (risk grade) to all Commercial and Industrial, Commercial Real Estate, Residential Real Estate and Consumer borrowings. An asset quality rating is assigned using the guidance provided in the Bank’s loan policy. Primary responsibility for assigning the asset quality rating rests with the lender. The asset quality rating is validated periodically by both an internal and external loan review process. The commercial loan grading system focuses on a borrower’s financial strength and performance, experience and depth of management, primary and secondary sources of repayment, the nature of the business and the outlook for the particular industry. Primary emphasis is placed on the financial condition and trends. The grade also reflects current economic and industry conditions; as well as other variables such as liquidity, cash flow, revenue/earnings trends, management strengths or weaknesses, quality of financial information, and credit history. The loan grading system for Residential Real Estate and Consumer loans focuses on the borrower’s credit score and credit history, debt-to-income ratio and income sources, collateral position and loan-to-value ratio, as well as other variables such as current economic conditions, and individual strengths and weaknesses. Risk grade characteristics are as follows: Risk Grade 1 – MINIMAL RISK through Risk Grade 6 – MANAGEMENT ATTENTION (Pass Grade Categories) Risk is evaluated via examination of several attributes including but not limited to financial trends, strengths and weaknesses, likelihood of repayment when considering both cash flow and collateral, sources of repayment, leverage position, management expertise, and repayment history. At the low-risk end of the rating scale, a risk grade of 1 - Minimal Risk is the grade reserved for loans with exceptional credit fundamentals and virtually no risk of default or loss. Loan grades then progress through escalating ratings of 2 through 6 based upon risk. Risk Grade 2 - Modest Risk are loans with sufficient cash flows; Risk Grade 3 - Average Risk are loans with key balance sheet ratios slightly above the borrower’s peers; Risk Grade 4 - Acceptable Risk are loans with key balance sheet ratios usually near the borrower’s peers, but one or more ratios may be higher; and Risk Grade 5 – Marginally Acceptable are loans with strained cash flow, increasing leverage and/or weakening markets. Risk Grade 6 - Management Attention are loans with weaknesses resulting from declining performance trends and the borrower’s cash flows may be temporarily strained. Loans in this category are performing according to terms, but present some type of potential concern. Risk Grade 7 - SPECIAL MENTION (Non-Pass Category) Generally, these loans or assets are currently protected, but are “Potentially Weak”. They constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. Assets in this category are currently protected but have potential weakness which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. No loss of principal or interest is envisioned; however, they constitute an undue credit risk that may be minor but is unwarranted in light of the circumstances surrounding a specific asset. Risk is increasing beyond that at which the loan originally would have been granted. Historically, cash flows are inconsistent; financial trends show some deterioration. Liquidity and leverage are above industry averages. Financial information could be incomplete or inadequate. A Special Mention asset has potential weaknesses that deserve management’s close attention. Risk Grade 8 - SUBSTANDARD (Non-Pass Category) Generally, these assets are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have “well-defined” weaknesses that jeopardize the full liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the aggregate amount of substandard assets is not fully covered by the liquidation of the collateral used as security. Substandard loans have a high probability of payment default; are inadequately protected by the current sound net worth, paying capacity of the borrower, or pledged collateral; and may have other well-defined weaknesses. Such assets require more intensive supervision by Bank Management. Risk Grade 9 - DOUBTFUL (Non-Pass Category) Generally, loans graded doubtful have all the weaknesses inherent in a substandard loan with the added factor that the weaknesses are pronounced to a point whereby the basis of current information, conditions, and values, collection or liquidation in full is deemed to be highly improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to strengthen the asset, its classification is deferred until, for example, a proposed merger, acquisition, liquidation procedure, capital injection, perfection of liens on additional collateral and/or refinancing plan is completed. Loans are graded doubtful if they contain weaknesses so serious that collection or liquidation in full is questionable. Premises, improvements, and equipment are stated at cost less accumulated depreciation computed principally utilizing the straight-line method over the estimated useful lives of the assets. Long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying value may not be recovered. Maintenance and minor repairs are charged to operations as incurred. The cost and accumulated depreciation of the premises and equipment retired or sold are eliminated from the property accounts at the time of retirement or sale, and the resulting gain or loss is reflected in current operations. The Corporation originates and sells real estate loans to investors in the secondary mortgage market. After the sale, the Corporation may retain the right to service these loans. When originated mortgage loans are sold and servicing is retained, a servicing asset is capitalized based on relative fair value at the date of sale. Servicing assets are amortized as an offset to other fees in proportion to, and over the period of, estimated net servicing income. The servicing asset is included in other assets in the Consolidated Balance Sheets. Gains or losses on sales of mortgage loans are recognized based on the differences between the selling price and the carrying value of the related mortgage loans sold. The cash surrender value of bank owned life insurance is carried as an asset, and changes in cash surrender value are recorded as non-interest income. The Bank entered into agreements to provide post-retirement benefits to two retired employees in the form of life insurance payable to the employee’s beneficiaries upon their death through endorsement split dollar life insurance arrangements. The Bank’s accrued liabilities for this benefit agreement as of December 31, 2015 and 2014 was $ 43,500 60,000 15,800 3,000 2,000 The Bank is a limited partner in real estate ventures that own and operate affordable residential low-income housing apartment buildings for elderly and mentally challenged adult residents. The investments are accounted for under the effective yield method. Under the effective yield method, the Bank recognizes tax credits as they are allocated and amortizes the initial cost of the investment to provide a constant effective yield over the period that the tax credits are allocated to the Bank. Under this method, the tax credits allocated, net of any amortization of the investment in the limited partnerships, are recognized in the consolidated statements of income as a component of income tax expense. The amount of tax credits allocated to the Bank were $ 230,000 230,000 266,000 167,000 159,000 191,000 590,000 Goodwill resulted from the acquisition of the Pocono Community Bank in November 2007 and of certain fixed and operating assets acquired and

RESTRICTED CASH BALANCES

RESTRICTED CASH BALANCES	12 Months Ended
	Dec. 31, 2015
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents Disclosure [Text Block]	NOTE 2 — RESTRICTED CASH BALANCES The Bank is required to maintain certain average reserve balances as established by the Federal Reserve Bank. The amount of those reserve balances for the reserve computation period which included December 31, 2015 and 2014, was $ 1,332,000 1,189,000 1,525,000 414,000

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	NOTE 3 — INVESTMENT SECURITIES (Dollars in thousands) Available-for-Sale Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2015: U.S. Treasury securities $ 1,022 $ — $ (1) $ 1,021 Obligations of U.S. Government Corporations and Agencies: Mortgage-backed 113,847 37 (1,410) 112,474 Other 21,554 117 (79) 21,592 Obligations of state and political subdivisions 195,297 5,425 (408) 200,314 Corporate debt securities 49,162 10 (1,339) 47,833 Marketable equity securities 1,194 813 — 2,007 Total $ 382,076 $ 6,402 $ (3,237) $ 385,241 (Dollars in thousands) Held-to-Maturity Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2015: Obligations of U.S. Government Corporations and Agencies: Mortgage-backed $ 26 $ 1 $ — $ 27 Other — — — — Total $ 26 $ 1 $ — $ 27 (Dollars in thousands) Available-for-Sale Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2014: U.S. Treasury securities $ 11,356 $ 24 $ (2) $ 11,378 Obligations of U.S. Government Corporations and Agencies: Mortgage-backed 112,146 1,055 (487) 112,714 Other 26,246 270 (6) 26,510 Obligations of state and political subdivisions 151,565 6,127 (469) 157,223 Corporate debt securities 38,499 112 (825) 37,786 Marketable equity securities 1,208 867 (20) 2,055 Total $ 341,020 $ 8,455 $ (1,809) $ 347,666 Held-to-Maturity Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2014: Obligations of U.S. Government Corporations and Agencies: Mortgage-backed $ 56 $ 2 $ — $ 58 Other 1,000 2 — 1,002 Total $ 1,056 $ 4 $ — $ 1,060 Securities Available-for-Sale with an aggregate fair value of $ 326,872,000 222,847,000 26,000 1,056,000 219,576,000 155,895,000 (Dollars in thousands) Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value 1 year or less $ 1,946 $ 1,977 $ — $ — Over 1 year through 5 years 54,300 54,589 — — Over 5 years through 10 years 119,231 119,190 — — Over 10 years 91,558 95,004 — — Mortgage-backed securities 113,847 112,474 26 27 Marketable equity securities 1,194 2,007 — — $ 382,076 $ 385,241 $ 26 $ 27 There were no aggregate investments with a single issuer (excluding the U.S. Government and its political subdivisions and agencies) which exceeded ten percent of consolidated stockholders’ equity at December 31, 2015. The quality rating of the obligations of state and political subdivisions are generally investment grade, as rated by Moody’s, Standard and Poor’s or Fitch. The typical exceptions are local issues which are not rated, but are secured by the full faith and credit obligations of the communities that issued these securities. Proceeds from sales of investments in Available-for-Sale debt and equity securities during 2015, 2014 and 2013 were $ 111,799,000 195,847,000 79,981,000 2,186,000 3,354,000 3,546,000 55,000 598,000 646,000 14,000 0 0 There were no proceeds from sales of investments in Held-to-Maturity debt and equity securities during 2015, 2014 and 2013. Therefore, there were no gains or losses realized during these periods. Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available-for-sale or held-to-maturity are generally evaluated for OTTI under FASB ASC 320, Investments - Debt and Equity Securities When other-than-temporary impairment occurs on debt securities, the amount of the other-than-temporary impairment recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the other-than-temporary impairment shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is determined based on the present value of cash flows expected to be collected, and the realized loss is recognized as impairment charges on securities on the Consolidated Statements of Income. The amount of the total other-than-temporary impairment related to the other factors shall be recognized in other comprehensive income (loss), net of applicable taxes. The previous amortized cost basis less the other-than-temporary impairment recognized in earnings becomes the new amortized cost basis of the investment. The fair market value of the equity securities tends to fluctuate with the overall equity markets as well as the trends specific to each institution. The equity securities portfolio is reviewed in a similar manner as that of the debt securities with greater emphasis placed on the length of time the market value has been less than the carrying value and the financial sector outlook. The Corporation also reviews dividend payment activities, levels of non-performing assets and loan loss reserves. The starting point for the equity analysis is the length and severity of market value decline. The realized loss is recognized as impairment charges on securities on the Consolidated Statements of Income. The amount of the total other-than-temporary impairment is recognized in other comprehensive income (loss), net of applicable taxes. The previous cost basis less the other-than-temporary impairment recognized in earnings becomes the new cost basis of the investment. The Corporation and its investment advisors monitor the entire portfolio monthly with particular attention given to securities in a continuous loss position of at least ten percent for over twelve months. As of June 30, 2015, we recognized other than temporary impairment on one equity security that was trading below cost basis. We have written down the value of the shares based upon market indications. In management’s opinion, the equity securities reflect a more accurate valuation of the shares after the impairment charge. Based on the factors described above, management did not consider any securities to be other-than-temporarily impaired at December 31, 2015 and 2014. Investments - Debt and Equity Securities December 31, 2015 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available-for-Sale: U.S. Treasury securities $ 1,021 $ (1) $ — $ — $ 1,021 $ (1) Obligations of U.S. Government Corporations and Agencies: Mortgage-backed 86,618 (1,177) 11,234 (233) 97,852 (1,410) Other 12,962 (79) — — 12,962 (79) Obligations of state and political subdivisions 26,163 (258) 8,105 (150) 34,268 (408) Corporate debt securities 27,527 (531) 19,433 (808) 46,960 (1,339) Marketable equity securities — — — — — — $ 154,291 $ (2,046) $ 38,772 $ (1,191) $ 193,063 $ (3,237) (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available-for-Sale: U.S. Treasury securities $ 6,030 $ (2) $ — $ — $ 6,030 $ (2) Obligations of U.S. Government Corporations and Agencies: Mortgage-backed 19,823 (230) 17,099 (257) 36,922 (487) Other 7,154 (6) — — 7,154 (6) Obligations of state and political subdivisions 21,459 (94) 18,273 (375) 39,732 (469) Corporate debt securities 22,227 (542) 12,066 (283) 34,293 (825) Marketable equity securities 30 (20) — — 30 (20) $ 76,723 $ (894) $ 47,438 $ (915) $ 124,161 $ (1,809) The Corporation invests in various forms of agency debt including mortgage backed securities and callable debt. The mortgage backed securities are issued by FHLMC (“Federal Home Loan Mortgage Corporation”), FNMA (“Federal National Mortgage Association”) or GNMA (“Government National Mortgage Association”). The municipal securities consist of general obligations and revenue bonds. The marketable equity securities consist of stocks in other bank holding companies. The fair market value of the above securities is influenced by market interest rates, prepayment speeds on mortgage securities, bid-offer spreads in the market place and credit premiums for various types of agency debt. These factors change continuously and therefore the market value of these securities may be higher or lower than the Corporation’s carrying value at any measurement date. Management does not believe any of their 69 20

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Financing Receivables [Text Block]	NOTE 4 — LOANS AND ALLOWANCE FOR LOAN LOSSES (Dollars in thousands) Commercial and Industrial Commercial Real Estate 2015 2014 2015 2014 Grade: 1-6 Pass $ 80,730 $ 64,459 $ 242,546 $ 237,404 7 Special Mention 4,194 47 3,890 11,008 8 Substandard — 21 12,238 5,472 9 Doubtful — — — — Add (deduct): Unearned discount and — — — — Net deferred loan fees and costs 150 129 344 38 Total loans $ 85,074 $ 64,656 $ 259,018 $ 253,922 Residential Real Estate Including Home Equity Consumer Loans 2015 2014 2015 2014 Grade: 1-6 Pass $ 163,690 $ 161,122 $ 5,764 $ 5,248 7 Special Mention 1,667 520 26 21 8 Substandard 1,245 1,640 4 9 9 Doubtful — — — — Add (deduct): Unearned discount and (15) — — (40) Net deferred loan fees and costs 41 271 96 92 Total loans $ 166,628 $ 163,553 $ 5,890 $ 5,330 Total Loans 2015 2014 Grade: 1-6 Pass $ 492,730 $ 468,233 7 Special Mention 9,777 11,596 8 Substandard 13,487 7,142 9 Doubtful — — Add (deduct): Unearned discount and (15) (40) Net deferred loan fees and costs 631 530 Total loans $ 516,610 $ 487,461 Commercial and Industrial and Commercial Real Estate include loans categorized as tax-free in the amounts of $ 43,817,000 2,992,000 30,334,000 3,235,000 1,929,000 2,201,000 (Dollars in thousands) Commercial Commercial Residential and Industrial Real Estate Real Estate Consumer Unallocated Total 2015 Allowance for Loan Losses: Beginning balance $ 542 $ 3,176 $ 1,928 $ 107 $ 637 $ 6,390 Charge-offs (2) (1,759) (210) (45) — (2,016) Recoveries 22 59 1 6 — 88 Provision 163 2,507 58 28 (479) 2,277 Ending Balance $ 725 $ 3,983 $ 1,777 $ 96 $ 158 $ 6,739 Ending balance: individually evaluated for impairment $ — $ 309 $ 31 $ — $ — $ 340 Ending balance: collectively evaluated for impairment $ 725 $ 3,674 $ 1,746 $ 96 $ 158 $ 6,399 Loans Receivable: Ending Balance $ 85,074 $ 259,018 $ 166,628 $ 5,890 $ — $ 516,610 Ending balance: individually evaluated for impairment $ 399 $ 12,057 $ 911 $ — $ — $ 13,367 Ending balance: collectively evaluated for impairment $ 84,675 $ 246,961 $ 165,717 $ 5,890 $ — $ 503,243 (Dollars in thousands) Commercial Commercial Residential and Industrial Real Estate Real Estate Consumer Unallocated Total 2014 Allowance for Loan Losses: Beginning balance $ 776 $ 3,320 $ 1,565 $ 53 $ 805 $ 6,519 Charge-offs (107) (328) (209) (47) — (691) Recoveries 31 81 14 3 — 129 Provision (158) 103 558 98 (168) 433 Ending Balance $ 542 $ 3,176 $ 1,928 $ 107 $ 637 $ 6,390 Ending balance: individually evaluated for impairment $ — $ 38 $ 81 $ — $ — $ 119 Ending balance: collectively evaluated for impairment $ 542 $ 3,138 $ 1,847 $ 107 $ 637 $ 6,271 Loans Receivable: Ending Balance $ 64,656 $ 253,922 $ 163,553 $ 5,330 $ — $ 487,461 Ending balance: individually evaluated for impairment $ 399 $ 5,350 $ 1,291 $ 4 $ — $ 7,044 Ending balance: collectively evaluated for impairment $ 64,257 $ 248,572 $ 162,262 $ 5,326 $ — $ 480,417 (Dollars in thousands) Commercial Commercial Residential and Industrial Real Estate Real Estate Consumer Unallocated Total 2013 Allowance for Loan Losses: Beginning balance $ 573 $ 2,837 $ 1,524 $ 80 $ 758 $ 5,772 Charge-offs (17) (290) (348) (39) — (694) Recoveries 24 31 5 9 — 69 Provision 196 742 384 3 47 1,372 Ending Balance $ 776 $ 3,320 $ 1,565 $ 53 $ 805 $ 6,519 Ending balance: individually evaluated for impairment $ — $ 125 $ 15 $ — $ — $ 140 Ending balance: collectively evaluated for impairment $ 776 $ 3,195 $ 1,550 $ 53 $ 805 $ 6,379 Loans Receivable: Ending Balance $ 60,822 $ 225,405 $ 154,675 $ 5,616 $ — $ 446,518 Ending balance: individually evaluated for impairment $ 21 $ 5,022 $ 931 $ — $ — $ 5,974 Ending balance: collectively evaluated for impairment $ 60,801 $ 220,383 $ 153,744 $ 5,616 $ — $ 440,544 Of the $ 1,472,000 256,000 50,000 1,166,000 55,000 221,000 118,000 From time to time, the Bank may agree to modify the contractual terms of a borrower’s loan. In cases where the modifications represent a concession to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (“TDR”). The outstanding balance of TDRs as of December 31, 2015 and December 31, 2014 was $11,096,000 and $4,708,000, respectively. The increase in TDRs was attributable to deterioration in the respective borrowers’ financial position. As of December 31, 2015 and 2014, there were $ 41,000 0 The significant increase in TDRs at December 31, 2015 as compared to December 31, 2014 is mainly due to the modification of two large loans as troubled debt restructurings during the year ended December 31, 2015. One loan in the amount of $4,204,000 is to a student housing holding company. The loan was modified as a TDR during the first quarter of 2015 due to the borrower’s failure to achieve stabilization and meet projected occupancy rates. One loan in the amount of $3,217,000 is to a developer of a residential sub-division. The loan was modified as a TDR during the fourth quarter of 2015 because development plans were hindered and expected sales of building lots have not materialized. For the year ended December 31, 2015, eight loans with a combined post modification balance of $8,767,000 were classified as TDRs, as compared to the years ended December 31, 2014 and 2013 when fourteen loans with a combined post modification balance of $1,880,000 and thirteen loans with a combined post modification balance of $4,382,000, respectively, were classified as TDRs. The loan modifications for the year ended December 31, 2015 consisted of five term modifications beyond the original stated term and three payment modifications. The loan modifications for the year ended December 31, 2014 consisted of one interest rate modification, four term modifications beyond the original stated term, and nine payment modifications. (Dollars in thousands) December 31, December 31, 2015 2014 Non-accrual TDRs $ 477 $ 1,638 Accruing TDRs 10,619 3,070 Total $ 11,096 $ 4,708 At December 31, 2015, two Commercial Real Estate loans classified as TDRs with a combined recorded investment of $ 249,000 2,087,000 During the twelve months ended December 31, 2015, four Commercial Real Estate loans totaling $ 4,382,000 4,000 188,000 563,000 4,204,000 (Dollars in thousands) Year Ended December 31, 2015 Pre-Modification Post-Modification Year-End Number Outstanding Recorded Outstanding Recorded Recorded of Contracts Investment Investment Investment Commercial and Industrial 1 $ 23 $ 23 $ 20 Commercial Real Estate 7 8,612 8,744 8,727 Consumer — — — — Total 8 $ 8,635 $ 8,767 $ 8,747 (Dollars in thousands) Year Ended December 31, 2014 Pre-Modification Post-Modification Year-End Number Outstanding Recorded Outstanding Recorded Recorded of Contracts Investment Investment Investment Commercial and Industrial 3 $ 397 $ 397 $ 394 Commercial Real Estate 10 1,389 1,476 1,066 Consumer 1 7 7 4 Total 14 $ 1,793 $ 1,880 $ 1,464 Year Ended December 31, 2015 Year Ended December 31, 2014 Rate Term Payment Number Rate Term Payment Number Modification Modification Modification Modified Modification Modification Modification Modified Commercial and Industrial — 1 — 1 — — 3 3 Commercial Real Estate — 4 3 7 1 4 5 10 Consumer — — — — — — 1 1 Total — 5 3 8 1 4 9 14 Year Ended December 31, 2013 Rate Term Payment Number Modification Modification Modification Modified Commercial and Industrial — — — — Commercial Real Estate 4 2 7 13 Consumer — — — — Total 4 2 7 13 (Dollars in thousands) December 31, 2015 December 31, 2014 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: Commercial and Industrial $ 399 $ 399 $ — $ 399 $ 545 $ — Commercial Real Estate 7,853 9,524 — 4,828 5,278 — Residential Real Estate 475 657 — 727 892 — Consumer — — — 4 4 — With an allowance recorded: Commercial and Industrial — — — — — — Commercial Real Estate 4,204 4,204 309 522 522 38 Residential Real Estate 436 436 31 564 569 81 Consumer — — — — — — Total $ 13,367 $ 15,220 $ 340 $ 7,044 $ 7,810 $ 119 Total consists of: Commercial and Industrial $ 399 $ 399 $ — $ 399 $ 545 $ — Commercial Real Estate $ 12,057 $ 13,728 $ 309 $ 5,350 $ 5,800 $ 38 Residential Real Estate $ 911 $ 1,093 $ 31 $ 1,291 $ 1,461 $ 81 Consumer $ — $ — $ — $ 4 $ 4 $ — At December 31, 2015 and 2014, $11,096,000 and $4,708,000 of loans classified as TDRs were included in impaired loans with a total allocated allowance of $ 309,000 27,000 (Dollars in thousands) For the Year Ended For the Year Ended For the Year Ended December 31, 2015 December 31, 2014 December 31, 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded: Commercial and Industrial $ 404 $ 16 $ 228 $ 8 $ 28 $ — Commercial Real Estate 5,971 280 4,409 107 3,950 128 Residential Real Estate 421 3 650 2 754 4 Consumer 2 — 5 1 — — With an allowance recorded: Commercial and Industrial — — — — — — Commercial Real Estate 3,377 267 292 21 189 1 Residential Real Estate 443 — 313 4 66 — Consumer — — — — — — Total $ 10,618 $ 566 $ 5,897 $ 143 $ 4,987 $ 133 Total consists of: Commercial and Industrial $ 404 $ 16 $ 228 $ 8 $ 28 $ — Commercial Real Estate $ 9,348 $ 547 $ 4,701 $ 128 $ 4,139 $ 129 Residential Real Estate $ 864 $ 3 $ 963 $ 6 $ 820 $ 4 Consumer $ 2 $ — $ 5 $ 1 $ — $ — 53,000 20,000 24,000 (Dollars in thousands) December 31, December 31, 2015 2014 Commercial and Industrial $ — $ 5 Commercial real estate 1,837 2,678 Residential real estate 911 1,291 Total non-accrual loans 2,748 3,974 Foreclosed assets held for resale 1,472 55 Loans past-due 90 days or more and still accruing 166 10 Total non-performing assets $ 4,386 $ 4,039 If interest on non-accrual loans had been accrued at original contract rates, interest income would have increased by $ 230,000 207,000 194,000 (Dollars in thousands) 90 Days Or Greater 90 Days Past Due 30-59 Days 60-89 Days or Greater Total Total and Still Past Due Past Due Past Due Past Due Current Loans Accruing December 31, 2015: Commercial and Industrial $ 34 $ — $ — $ 34 $ 85,040 $ 85,074 $ — Commercial Real Estate 316 3 1,484 1,803 257,215 259,018 — Residential Real Estate 1,288 491 1,049 2,828 163,800 166,628 166 Consumer 20 — — 20 5,870 5,890 — Total $ 1,658 $ 494 $ 2,533 $ 4,685 $ 511,925 $ 516,610 $ 166 (Dollars in thousands) 90 Days Or Greater 90 Days Past Due 30-59 Days 60-89 Days or Greater Total Total and Still Past Due Past Due Past Due Past Due Current Loans Accruing December 31, 2014: Commercial and Industrial $ 72 $ 28 $ 5 $ 105 $ 64,551 $ 64,656 $ — Commercial Real Estate 1,657 613 2,375 4,645 249,277 253,922 — Residential Real Estate 1,998 224 1,220 3,442 160,111 163,553 10 Consumer 27 8 — 35 5,295 5,330 — Total $ 3,754 $ 873 $ 3,600 $ 8,227 $ 479,234 $ 487,461 $ 10 At December 31, 2015, the only commitment to lend additional funds with respect to impaired loans was an outstanding irrevocable letter of credit in the amount of $ 2,185,000

MORTGAGE SERVICING RIGHTS

MORTGAGE SERVICING RIGHTS	12 Months Ended
	Dec. 31, 2015
Transfers and Servicing [Abstract]
Transfers and Servicing of Financial Assets [Text Block]	NOTE 5 — MORTGAGE SERVICING RIGHTS The mortgage loans sold and serviced for others are not included in the Consolidated Balance Sheets. The unpaid principal balances of mortgage loans serviced for others were $ 98,619,000 92,175,000 (Dollars in thousands) 2015 2014 2013 Balance, January 1 $ 481 $ 521 $ 478 Servicing asset additions 144 83 193 Amortization (132) (123) (150) Balance, December 31 $ 493 $ 481 $ 521

PREMISES AND EQUIPMENT

PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT [Text Block]	NOTE 6 — PREMISES AND EQUIPMENT (Dollars in thousands) Estimated Useful Life (in years) 2015 2014 Land N/A $ 3,180 $ 3,180 Buildings 5-40 19,288 19,062 Leasehold improvements 3-20 289 286 Equipment 3-25 8,106 7,938 30,863 30,466 Less: Accumulated depreciation 10,750 9,595 Total $ 20,113 $ 20,871 Depreciation amounted to $ 1,271,000 1,279,000 1,151,000 The banking subsidiary leases land and a bank building in Stroudsburg, Pennsylvania, under a lease expiring in 2017. Please refer to Note 13 — 948,000 857,000 810,000 47,000 48,000 47,000

CORE DEPOSIT INTANGIBLES

CORE DEPOSIT INTANGIBLES	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	NOTE 7 — CORE DEPOSIT INTANGIBLES (Dollars in thousands) Gross Accumulated Carrying Amount Amortization 2015 2014 2015 2014 Core deposit intangibles $ 2,218 $ 2,218 $ 2,218 $ 2,096 Amortization expense of the core deposit intangibles was $ 122,000 273,000 273,000 Estimated amortization for the year ending December 31, 2016 is $ 0

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2015
Deposits [Abstract]
Deposit Liabilities Disclosures [Text Block]	NOTE 8 — DEPOSITS (Dollars in thousands) 2015 2014 Non-interest bearing demand $ 107,391 $ 96,530 Interest bearing demand 247,610 185,511 Savings 179,891 177,865 Time certificates of deposits less than $250,000 167,365 184,188 Time certificates of deposits $250,000 or greater 17,197 16,323 Other time 1,144 1,145 Total deposits $ 720,598 $ 661,562 (Dollars in thousands) Year Ending 2016 $ 79,545 2017 33,757 2018 16,161 2019 32,208 2020 20,262 Thereafter 3,773 $ 185,706 School district $ 112,214,000 School district 33,639,000 Total $ 145,853,000

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS	12 Months Ended
	Dec. 31, 2015
Short-term Debt [Abstract]
Short-term Debt [Text Block]	NOTE 9 — SHORT-TERM BORROWINGS Short-term borrowings include federal funds purchased, securities sold under agreements to repurchase, Federal Discount Window, and Federal Home Loan Bank (“FHLB”) advances, which generally represent overnight or less than 30 (Dollars in thousands) 2015 2014 Average Average Amount Rate Amount Rate Federal funds purchased $ — 0.00 % $ — 0.76 % Securities sold under agreements to repurchase 20,779 0.25 % 16,730 0.24 % Federal Discount Window — 0.73 % — 0.75 % Federal Home Loan Bank 59,760 0.35 % 56,393 0.30 % $ 80,539 0.32 % $ 73,123 0.28 % At December 31, 2015, the maximum borrowing capacity of federal funds purchased and the Federal Discount Window was $ 10,000,000 4,649,000 Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) The Corporation enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities. Under these arrangements, the Corporation may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Corporation to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing agreements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability on the Corporation’s Consolidated Balance Sheets, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is not offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Corporation does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Corporation be in default (e.g., fails to make an interest payment to the counterparty). The collateral is held by a correspondent bank in the counterparty’s custodial account. The counterparty has the right to sell or repledge the investment securities. (Dollars in thousands) Gross Net Amounts Amounts of Liabilities Offset Presented Gross in the in the Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral Net Liabilities Sheet Sheet Instruments Pledge Amount December 31, 2015 Repurchase agreements (a) $ 20,779 $ — $ 20,779 $ (20,779) $ — $ — December 31, 2014 Repurchase agreements (a) $ 16,730 $ — $ 16,730 $ (16,730) $ — $ — (a) As of December 31, 2015 and 2014, the fair value of securities pledged in connection with repurchase agreements was $ 27,510,000 26,094,000 (Dollars in thousands) Remaining Contractual Maturity of the Agreements Overnight Greater and Up to 30 -90 than Continuous 30 days Days 90 Days Total Repurchase agreements and repurchase-to-maturity transactions: U.S. Treasury and/or agency securities $ 20,779 $ — $ — $ — $ 20,779 Total $ 20,779 $ — $ — $ — $ 20,779

LONG-TERM BORROWINGS

LONG-TERM BORROWINGS	12 Months Ended
	Dec. 31, 2015
Long-term Debt, Unclassified [Abstract]
Long-term Debt [Text Block]	NOTE 10 — LONG-TERM BORROWINGS Long-term borrowings are comprised of advances from FHLB and a capital lease assumed as a result of the acquisition of Pocono Community Bank. The long-term capital lease balance was $ 232,000 339,000 116,000 116,000 Under terms of a blanket agreement, collateral for the FHLB loans is certain qualifying assets of the Corporation’s banking subsidiary. The qualifying assets are real estate mortgages and certain investment securities. (Dollars in thousands) 2015 2014 Due 2016, 2.69% $ 5,000 $ 5,000 Due 2017, 1.07% 10,000 10,000 Due 2018, 1.27% to 4.86% 23,000 23,000 Due 2019, 1.79% to 2.11% 20,000 20,000 Due 2020, 1.62% to 1.95% 10,000 5,000 Due 2028, 5.14% 2,000 2,000 $ 70,000 $ 65,000 The Corporation’s long-term borrowings consist of one adjustable rate convertible note, with a balance of $10,000,000, which has an 8.00 270,265,000

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	NOTE 11 — INCOME TAXES (Dollars in thousands) 2015 2014 2013 Federal Current $ 1,688 $ 2,571 $ 2,485 Deferred 283 46 (260) Income tax expense $ 1,971 $ 2,617 $ 2,225 (Dollars in thousands) 2015 2014 2013 Amount Rate Amount Rate Amount Rate Federal income tax at statutory rate $ 3,789 34.0 % $ 4,362 34.0 % $ 4,249 34.0 % Tax-exempt income (1,374) (12.3) (1,162) (9.1) (1,563) (12.5) Low-income housing credits (230) (2.1) (230) (1.8) (266) (2.1) Bank owned life insurance income (226) (2.0) (231) (1.8) (234) (1.9) Other 12 0.1 (122) (0.9) 39 0.3 Income tax expense and rate $ 1,971 17.7 % $ 2,617 20.4 % $ 2,225 17.8 % (Dollars in thousands) 2015 2014 Deferred Tax Assets: Allowance for loan losses $ 2,291 $ 2,173 Provision for unfunded commitments 63 — Deferred compensation 519 528 Contributions 32 29 Non-accrual interest 34 43 Leases 227 282 Limited partnership investments 71 66 Alternative minimum tax credits 6 279 Tax credits from limited partnerships — 7 Impairment loss on investment securities 6 — Capital and net operating loss carry forwards 35 143 Total 3,284 3,550 Deferred Tax Liabilities: Net unrealized investment securities gains 1,130 2,316 Loan fees and costs 215 180 Accumulated depreciation 814 828 Accretion 72 65 Mortgage servicing rights 49 44 Intangibles 312 328 Total 2,592 3,761 Net Deferred Tax Asset (Liability) $ 692 $ (211) A valuation allowance for deferred tax assets was recorded at December 31, 2015 and 2014 in the amount of $ 20,000 538,000 459,000 2035 The low-income housing credit carryforward will expire between 2017 and 2022, and the alternative minimum tax credit carryforward has no expiration In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible and tax planning strategies, management believes it is more likely than not that the Corporation will realize the benefits of these deferred tax assets, net of any valuation allowance at December 31, 2015. The Corporation did not have any uncertain tax positions at December 31, 2015 and 2014. The Corporation and its subsidiary file a consolidated federal income tax return. The Corporation is no longer subject to examination by Federal or State taxing authorities for the years before 2012.

EMPLOYEE BENEFIT PLANS AND DEFE

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE 12 — EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS The Corporation maintains a 401k Plan which has a combined tax qualified savings feature and profit sharing feature for the benefit of its employees. Effective January 1, 2014, the plan became a Safe Harbor Plan. Under the savings feature, the Corporation makes safe harbor matching contributions of 100% of the first 3% of compensation an employee contributes to the Plan and 50% of the next 2% of compensation an employee contributes to the Plan. 281,000 100 3 280,000 206,000 297,000 431,000 558,000 The Bank also has non-qualified deferred compensation agreements with three of its officers and four retired officers. These agreements are essentially unsecured promises by the Bank to make monthly payments to the officers over a twenty year period. Payments begin based upon specific criteria — generally, when the officer retires. To account for the cost of payments yet to be made in the future, the Bank recognizes an accrued liability in years prior to when payments begin based on the present value of those future payments. The Bank’s accrued liability for these deferred compensation agreements, reported in other liabilities on the consolidated balance sheets, as of December 31, 2015 and 2014, was $ 1,483,000 1,494,000 82,000 137,000 154,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 13 — COMMITMENTS AND CONTINGENCIES The Corporation’s banking subsidiary currently leases three branch banking facilities and one parcel of land under operating leases. Rent expense for the years ended December 31, 2015, 2014 and 2013 was $ 153,000 122,000 142,000 125,000 132,000 134,000 110,000 59,000 2,589,000 The banking subsidiary leases land and a bank building in Stroudsburg, Pennsylvania, under a lease expiring in 2017. This lease has an operating lease commitment and a capital lease component. Minimum future rental payments as of December 31, 2015 under this non-cancelable operating lease component for land are due as follows and are not included in the amounts of operating lease payments above, 2016 - $ 48,000 43,000 Year Ending December 31 2016 132,000 2017 120,000 Total minimum lease payments 252,000 Less amounts representing interest 20,000 Present value of net minimum lease payments $ 232,000 In the normal course of business, there are various pending legal actions and proceedings that are not reflected in the consolidated financial statements. Management does not believe the outcome of these actions and proceedings will have a material effect on the consolidated financial position of the Corporation.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 14 — RELATED PARTY TRANSACTIONS Certain directors and executive officers of First Keystone Corporation and its subsidiary and companies in which they are principal owners (i.e., at least 10% ownership) were indebted to the Corporation at December 31, 2015 and 2014. These loans were made on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties. The loans do not involve more than the normal risk of collectability nor present other unfavorable features. (Dollars in thousands) 2015 2014 Balance at January 1 $ 3,658 $ 3,389 Additions 2,096 2,700 Deductions (2,076) (2,431) Balance at December 31 $ 3,678 $ 3,658 The above loans represent funds drawn and outstanding at the date of the consolidated financial statements. Commitments by the Bank to related parties on lines of credit and letters of credit for 2015 and 2014, presented an additional off-balance sheet risk to the extent of undisbursed funds in the amounts of $ 4,993,000 2,921,000 Deposits from certain officers and directors and/or their related companies held by the Bank amounted to $ 10,415,000 9,899,000

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2015
Regulatory Matters [Abstract]
Regulatory Capital Requirements under Banking Regulations [Text Block]	NOTE 15 — REGULATORY MATTERS Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. At December 31, 2015, $ 6,071,000 10 The Corporation is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possibly additional discretionary — actions by regulators that, if undertaken, could have a direct material effect on the Corporation’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative measures of the Corporation’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Management believes, as of December 31, 2015 and 2014, that the Corporation and the Bank met all capital adequacy requirements to which they are subject. On July 2, 2013, the Board of Governors of the Federal Reserve System finalized its rule implementing the Basel III regulatory capital framework, which the FDIC adopted on July 9, 2013. Under the rule, minimum requirements increased both the quantity and quality of capital held by banking organizations. Consistent with the Basel III framework, the rule included a new minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5 2.5 4 6 4 Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total Capital, Tier I Capital and Common Equity Tier 1 Capital (as defined in the regulations) to Risk Weighted Assets (as defined), and of Tier I Capital (as defined) to Average Assets (as defined). (Dollars in thousands) To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Total Capital (to Risk-Weighted Assets) $ 87,605 13.76 % $ 50,951 8.00 % $ 63,689 10.00 % Tier I Capital (to Risk-Weighted Assets) $ 80,682 12.67 % $ 38,213 6.00 % $ 50,951 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Asserts) $ 80,682 12.67 % $ 28,660 4.50 % $ 41,398 6.50 % Tier I Capital (to Average Assets) $ 80,682 8.46 % $ 38,123 4.00 % $ 47,665 5.00 % (Dollars in thousands) To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2014: Total Capital (to Risk-Weighted Assets) $ 83,813 15.07 % $ 44,490 8.00 % $ 55,612 10.00 % Tier I Capital (to Risk-Weighted Assets) $ 77,423 13.92 % $ 22,245 4.00 % $ 33,367 6.00 % Tier I Capital (to Average Assets) $ 77,423 8.63 % $ 35,897 4.00 % $ 44,871 5.00 % The Corporation’s capital ratios are not materially different from those of the Bank.

FINANCIAL INSTRUMENTS WITH OFF-

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK	12 Months Ended
	Dec. 31, 2015
Risks and Uncertainties [Abstract]
Schedule Off Balance Sheet Credit Risks [Text Block]	NOTE 16 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK The Corporation 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. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation does not engage in trading activities with respect to any of its financial instruments with off-balance sheet risk. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Corporation may require collateral or other security to support financial instruments with off-balance sheet credit risk. (Dollars in thousands) 2015 2014 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 79,771 $ 84,983 Financial standby letters of credit $ 475 $ 471 Performance standby letters of credit $ 4,692 $ 5,851 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses that may require payment of a fee. Since some of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, owner-occupied income-producing commercial properties, and residential real estate. Standby letters of credit are conditional commitments issued by the Corporation to guarantee payment to a third party when a customer either fails to repay an obligation or fails to perform some non-financial obligation. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Corporation may hold collateral to support standby letters of credit for which collateral is deemed necessary.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 17 — STOCKHOLDERS’ EQUITY The Corporation also offers to its shareholders a Dividend Reinvestment and Stock Purchase Plan. Participation in this plan by shareholders began in 2001. The plan provides First Keystone shareholders a convenient and economical way to purchase additional shares of common stock by reinvesting dividends. A plan participant can elect full dividend reinvestment or partial dividend reinvestment provided at least 25 100 2,500 Shares transferred under this Dividend Reinvestment and Stock Purchase Plan were 50,796 46,047 39,074 115,054 Shares of First Keystone common stock are purchased for the plan either in the open market by an independent broker on behalf of the plan, directly from First Keystone as original issue shares, or through negotiated transactions. A combination of the previous methods could also occur.

STOCK COMPENSATION PLAN

STOCK COMPENSATION PLAN	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 18 — STOCK COMPENSATION PLAN On February 10, 1998, the Board of Directors adopted the 1998 Employee Stock Option Plan and initially reserved 100,000 1,500 The fair value of stock options issued to employees is measured on the date of the grant and is recognized as compensation expense over the requisite service period. Expected volatility and dividend yield are based on historical stock prices and dividend amounts over past time periods equal in length to the life of the options. The risk-free interest rate is determined using the U.S. Treasury yield curve in effect at the date of the grant. The expected life of the options is calculated using the average term of the vesting period and the maximum term. 2015 2014 2013 Weighted Weighted Weighted Average Average Average Stock Exercise Stock Exercise Stock Exercise Options Price Options Price Options Price Balance at January 1 4,323 $ 18.28 4,823 $ 18.12 11,904 $ 19.90 Exercised (2,037) 18.37 — — (2,034) 21.11 Forfeited/Expired (786) 20.95 (500) 16.75 (5,047) 21.11 Balance at December 31 1,500 $ 16.75 4,323 $ 18.28 4,823 $ 18.12 Exercisable at December 31 1,500 $ 16.75 4,323 $ 18.28 4,823 $ 18.12 Under the terms of the Plan, the stock options including amendments as to price and terms were adjusted for the stock dividend in 2006. The exercise price of options outstanding and exercisable as of December 31, 2015 is $ 16.75 2.00 The 1,500 options outstanding and exercisable as December 31, 2015 have an intrinsic value, which is the amount that the value of the underlying stock exceeds the exercise price of the options, of $ 13,000 16,000 0 10,000 37,000 0 43,000 Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Number Remaining Exercise Number Exercise Year Outstanding* Contractual Life Price Exercisable Price 2007 1,500 2.00 $ 16.75 1,500 $ 16.75 *As adjusted for stock dividend noted above.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	NOTE 19 — FAIR VALUE MEASUREMENTS Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. This guidance provides additional information on determining when the volume and level of activity for the asset or liability has significantly decreased. The guidance also includes information on identifying circumstances when a transaction may not be considered orderly. Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with the fair value measurement and disclosure guidance. This guidance clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own belief about the assumptions market participants would use in pricing the asset or liability based upon the best information available in the circumstances. Fair value measurement and disclosure guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Inputs : Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Input: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth as follows. Financial Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) December 31, 2015 Level 1 Level 2 Level 3 Total Available-for-Sale Securities: U.S. Treasury securities $ — $ 1,021 $ — $ 1,021 Obligations of U.S. Government Corporations and Agencies: Mortgaged-backed — 112,474 — 112,474 Other — 21,592 — 21,592 Obligations of state and political subdivisions — 200,314 — 200,314 Corporate debt securities — 47,833 — 47,833 Marketable equity securities 2,007 — — 2,007 Total $ 2,007 $ 383,234 $ — $ 385,241 (Dollars in thousands) December 31, 2014 Level 1 Level 2 Level 3 Total Available-for-Sale Securities: U.S. Treasury securities $ — $ 11,378 $ — $ 11,378 Obligations of U.S. Government Corporations and Agencies: Mortgaged-backed — 112,714 — 112,714 Other — 26,510 — 26,510 Obligations of state and political subdivisions — 157,223 — 157,223 Corporate debt securities — 37,786 — 37,786 Marketable equity securities 2,055 — — 2,055 Total $ 2,055 $ 345,611 $ — $ 347,666 The estimated fair values of equity securities classified as Level 1 are derived from quoted market prices in active markets; these assets consist mainly of stocks held in other banks. The estimated fair values of all debt securities classified as Level 2 are obtained from nationally-recognized third-party pricing agencies. The estimated fair values are derived primarily from cash flow models, which include assumptions for interest rates, credit losses, and prepayment speeds. The significant inputs utilized in the cash flow models are based on market data obtained from sources independent of the Corporation (observable inputs), and are therefore classified as Level 2 within the fair value hierarchy. The Corporation does not have any Level 3 inputs for investments. There were no transfers between Level 1 and Level 2 during 2015 and 2014. Financial Assets Measured at Fair Value on a Nonrecurring Basis (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2015 Impaired loans: Commercial and Industrial $ — $ — $ — $ — Commercial Real Estate — — 1,665 1,665 Residential Real Estate — — 631 631 Total impaired loans $ — $ — $ 2,296 $ 2,296 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2014 Impaired loans: Commercial and Industrial $ — $ — $ 3 $ 3 Commercial Real Estate — — 2,073 2,073 Residential Real Estate — — 856 856 Total impaired loans $ — $ — $ 2,932 $ 2,932 The Bank’s impaired loan valuation procedure for any loans greater than $ 250,000 250,000 Nonfinancial Assets Measured at Fair Value on a Nonrecurring Basis (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2014 Other foreclosed assets held for resale: Commercial Real Estate $ — $ — $ 55 $ 55 Total foreclosed assets held for resale $ — $ — $ 55 $ 55 The Bank’s foreclosed asset valuation procedure requires an appraisal, which considers the sales prices of similar properties in the proximate vicinity, to be completed periodically with the exception of those cases which the Bank has obtained a sales agreement. These assets are included as Level 3 fair values, based upon the lowest level that is significant to the fair value measurements. There were no transfers between valuation levels in 2015 and 2014. (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value Weighted December 31, 2015 Estimate Valuation Technique Unobservable Input Range Average Impaired loans $ 2,296 Appraisal of collateral 1 , 3 Appraisal adjustments 2 (10%) – (63%) (29%) Foreclosed assets held for sale $ — Appraisal of collateral 1 , 3 Appraisal adjustments 2 (0%) – (0%) (0%) December 31, 2014 Impaired loans $ 2,932 Appraisal of collateral 1 , 3 Appraisal adjustments 2 (0%) – (63%) (37%) Foreclosed assets held for sale $ 55 Appraisal of collateral 1 , 3 Appraisal adjustments 2 (33%) – (46%) (37%) 1 Fair value is generally determined through independent appraisals of the underlying collateral, as defined by Bank regulators. 2 Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value. 3 Includes qualitative adjustments by management and estimated liquidation expenses. Fair Value of Financial Instruments Carrying Fair Value Measurements at December 31, 2015 Amount Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Cash and due from banks $ 7,474 $ 7,474 $ — $ — $ 7,474 Interest-bearing deposits in other banks 1,534 — 1,534 — 1,534 Time deposits with other banks 1,482 — 1,482 — 1,482 Investment securities available-for-sale 385,241 2,007 383,234 — 385,241 Investment securities held-to-maturity 26 — 27 — 27 Restricted investment in bank stocks 5,742 — 5,742 — 5,742 Net loans 509,871 — — 498,671 498,671 Mortgage servicing rights 493 — — 493 493 Accrued interest receivable 4,086 — 4,086 — 4,086 FINANCIAL LIABILITIES: Deposits 720,598 — 720,341 — 720,341 Short-term borrowings 80,539 — 80,539 — 80,539 Long-term borrowings 70,232 — 71,302 — 71,302 Accrued interest payable 382 — 382 — 382 OFF-BALANCE SHEET FINANCIAL INSTRUMENTS — — — — — (Dollars in thousands) Carrying Fair Value Measurements at December 31, 2014 Amount Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Cash and due from banks $ 7,543 $ 7,543 $ — $ — $ 7,543 Interest-bearing deposits in other banks 424 — 424 — 424 Time deposits with other banks 1,482 — 1,482 — 1,482 Investment securities available-for-sale 347,666 2,055 345,611 — 347,666 Investment securities held-to-maturity 1,056 — 1,060 — 1,060 Restricted investment in bank stocks 5,308 — 5,308 — 5,308 Net loans 481,071 — — 472,687 472,687 Mortgage servicing rights 481 — — 481 481 Accrued interest receivable 3,313 — 3,313 — 3,313 FINANCIAL LIABILITIES: Deposits 661,562 — 661,819 — 661,819 Short-term borrowings 73,123 — 73,123 — 73,123 Long-term borrowings 65,339 — 66,747 — 66,747 Accrued interest payable 399 — 399 — 399 OFF-BALANCE SHEET FINANCIAL INSTRUMENTS — — — — — The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of the Corporation’s financial instruments at December 31, 2015 and December 31, 2014: Cash and Due From Banks, Interest-Bearing Deposits in Other Banks, Time Deposits with Other Banks, Restricted Investment in Bank Stocks, Accrued Interest Receivable and Accrued Interest Payable The fair values are equal to the current carrying values. Investment Securities The fair value of investment securities are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1) or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying on the securities’ relationship to other benchmark quoted prices. Loans Fair values are estimated for categories of loans with similar financial characteristics. Loans were segregated by type such as Commercial and Industrial, Commercial and Residential Real Estate mortgages and Consumer. For estimation purposes, each loan category was further segmented into fixed and adjustable rate interest terms. The fair value of each category of performing loans is calculated by discounting future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Fair value for impaired loans is based on management’s estimate of future cash flows discounted using a rate commensurate with the risk associated with the estimated future cash flows or based on the value of the collateral if repayment is expected solely from collateral. The assumptions used by management are judgmentally determined using information regarding each specific borrower. Mortgage Servicing Rights Servicing rights are carried at cost. The carrying amount approximates fair value. Deposits The fair value of deposits with no stated maturity, such as demand deposits, savings accounts and money market accounts, is equal to the amount payable on demand at December 31, 2015 and 2014. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar term borrowings, to a schedule of aggregated expected monthly maturities on time deposits. Short-Term and Long-Term Borrowings The fair values of short-term borrowings are equal to the current carrying values, and long-term borrowings are estimated using discounted cash flow analyses based on the Corporation’s incremental borrowing rate for similar instruments. Off-Balance Sheet Financial Instruments The fair values for the Corporation’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing.

PARENT COMPANY FINANCIAL INFORM

PARENT COMPANY FINANCIAL INFORMATION	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Financial Information of Parent Company Only Disclosure [Text Block]	NOTE 20 — PARENT COMPANY FINANCIAL INFORMATION Condensed financial information for First Keystone Corporation (parent company only) was as follows: (Dollars in thousands) December 31, 2015 2014 ASSETS Cash $ 5,548 $ 4,214 Investment in banking subsidiary 101,368 100,552 Investment securities available-for-sale 2,007 2,055 Prepaid expenses and other assets 752 49 TOTAL ASSETS $ 109,675 $ 106,870 LIABILITIES Advances from banking subsidiary $ 1,235 $ 218 Accrued expenses and other liabilities 2 381 TOTAL LIABILITIES 1,237 599 STOCKHOLDERS’ EQUITY Common stock 11,707 11,605 Surplus 33,830 32,674 Retained earnings 66,622 63,485 Accumulated other comprehensive income 2,035 4,330 Treasury stock, at cost (5,756) (5,823) TOTAL STOCKHOLDERS’ EQUITY 108,438 106,271 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 109,675 $ 106,870 (Dollars in thousands) Year Ended December 31, 2015 2014 2013 INCOME Dividends from subsidiary bank $ 6,102 $ 7,041 $ 10,416 Net investment securities gains — 187 — Other income 79 76 64 TOTAL INCOME 6,181 7,304 10,480 OPERATING EXPENSES 133 136 162 6,048 7,168 10,318 INCOME TAX (BENEFIT) EXPENSE (33) 43 (61) 6,081 7,125 10,379 EQUITY IN (EXCESS OF) UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY 3,091 3,086 (106) NET INCOME $ 9,172 $ 10,211 $ 10,273 (Dollars in thousands) Years Ended December 31, 2015 2014 2013 Net Income $ 9,172 $ 10,211 $ 10,273 Other comprehensive income (loss): Unrealized net holding gains (losses) on available-for-sale investment securities arising during the period, net of income taxes of $(19), $13 and $226, respectively (29) 19 332 Less reclassification adjustment for net gains included in net income, net of income taxes of $0, $(76) and $0, respectively — (111) — Less reclassification adjustment for impairment charges on equity securities included in net income, net of income taxes of $5, $0 and $0, respectively 9 — — Equity in other comprehensive income (loss) of banking subsidiary (2,275) 4,476 (12,914) Total other comprehensive income (loss) (2,295) 4,384 (12,582) Total Comprehensive Income (Loss) $ 6,877 $ 14,595 $ (2,309) (Dollars in thousands) Year Ended December 31, 2015 2014 2013 OPERATING ACTIVITIES Net income $ 9,172 $ 10,211 $ 10,273 Adjustments to reconcile net income to net cash provided by operating activities: Gains on sales of investment securities — (187) — Impairment charges on equity securities 14 — — Deferred income tax expense 63 41 — (Equity in) excess of undistributed earnings of banking subsidiary (3,091) (3,086) 106 (Increase) decrease in prepaid/accrued expenses and other assets/liabilities (1,095) 327 325 Increase (decrease) in advances from banking subsidiary 1,017 (1,318) (8,355) NET CASH PROVIDED BY OPERATING ACTIVITIES 6,080 5,988 2,349 INVESTING ACTIVITIES Proceeds from sales of investment securities available-for-sale — 512 — NET CASH PROVIDED BY INVESTING ACTIVITIES — 512 — FINANCING ACTIVITIES Proceeds from issuance of common stock 1,252 1,121 981 Proceeds from issuance of treasury stock 37 — 43 Dividends paid (6,035) (5,815) (5,716) NET CASH USED IN FINANCING ACTIVITIES (4,746) (4,694) (4,692) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,334 1,806 (2,343) CASH AND CASH EQUIVALENTS, BEGINNING 4,214 2,408 4,751 CASH AND CASH EQUIVALENTS, ENDING $ 5,548 $ 4,214 $ 2,408

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The consolidated financial statements include the accounts of First Keystone Corporation and its wholly-owned subsidiary, First Keystone Community Bank (the “Bank”). All significant inter-company balances and transactions have been eliminated in consolidation.
Nature of Operations [Policy Text Block]	Nature of Operations The Corporation, headquartered in Berwick, Pennsylvania, provides a full range of banking, trust and related services through its wholly-owned Bank subsidiary and is subject to competition from other financial institutions in connection with these services. The Bank serves a customer base which includes individuals, businesses, governments, and public and institutional customers primarily located in the Northeast Region of Pennsylvania. The Bank has 18 20
Segment Reporting, Policy [Policy Text Block]	Segment Reporting The Corporation’s subsidiary acts as an independent community financial services provider, and offers traditional banking and related financial services to individual, business, government, and public and institutional customers. Through its branch and ATM network, the Bank offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of other financial services. The Bank also performs personal, corporate, pension and fiduciary services through its Trust Department. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, trust and mortgage banking operations of the Corporation. As such, discrete financial information is not available and segment reporting would not be meaningful.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Significant Concentrations of Credit Risk The majority of the Corporation’s activities involve customers located primarily in Columbia, Luzerne, Montour and Monroe counties in Pennsylvania. The types of securities in which the Corporation invests are presented in Note 3 – Investment Securities. Credit risk as it relates to investment activities is moderated through the monitoring of ratings and geographic concentrations residing in the portfolio and the observance of minimum rating levels in the investment policy. Note 4 – Loans and Allowance for Loan Losses summarizes the types of lending in which the Corporation engages. The inherent risks associated with lending activities are mitigated by adhering to conservative underwriting practices and policies, as well as portfolio diversification and thorough monitoring of the loan portfolio. It is management’s opinion that the investment and loan portfolios were well balanced at December 31, 2015, to the extent necessary to avoid any significant concentrations of credit risk.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of these consolidated financial statements, in conformity with accounting principles generally accepted in the United States of America, 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 these consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include the determination of other-than-temporary impairment on securities and the determination of the allowance for loan losses.
Subsequent Events, Policy [Policy Text Block]	Subsequent Events The Corporation has evaluated events and transactions occurring subsequent to the consolidated balance sheet date of December 31, 2015, for items that should potentially be recognized or disclosed in the consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and due from banks, interest-bearing deposits in other banks, and federal funds sold. The Corporation considers cash classified as interest-bearing deposits with other banks as a cash equivalent since they are represented by cash accounts essentially on a demand basis and mature within one year. Federal funds are also included as a cash equivalent because they are generally purchased and sold for one-day periods.
Time Deposits with Other Banks [Policy Text Block]	Time Deposits with Other Banks Time deposits with other banks consist of fully insured certificates of deposit in other banks with maturity dates between one and five years.
Investment, Policy [Policy Text Block]	Investment Securities The Corporation classifies its investment securities as either “Held-to-Maturity” or “Available-for-Sale” at the time of purchase. Investment securities are accounted for on a trade date basis. Debt securities are classified as Held-to-Maturity when the Corporation has the ability and positive intent to hold the securities to maturity. Investment securities classified as Held-to-Maturity are carried at cost adjusted for amortization of premium and accretion of discount to maturity. Debt securities not classified as Held-to-Maturity and equity securities are included in the Available-for-Sale category and are carried at fair value. The amount of any unrealized gain or loss, net of the effect of deferred income taxes, is reported as accumulated other comprehensive income (loss) in the Consolidated Balance Sheets and Consolidated Statements of Changes in Stockholders’ Equity. Management’s decision to sell Available-for-Sale securities is based on changes in economic conditions controlling the sources and applications of funds, terms, availability of and yield of alternative investments, interest rate risk and the need for liquidity. The cost of debt securities classified as Held-to-Maturity or Available-for-Sale is adjusted for amortization of premiums and accretion of discounts to expected maturity. Such amortization and accretion, as well as interest and dividends, are included in interest and dividend income on investment securities. Realized gains and losses are included in net investment securities gains and losses. The cost of investment securities sold, redeemed or matured is based on the specific identification method.
Restricted Investments [Policy Text Block]	Restricted Investment in Bank Stocks The Bank owns restricted stock investments in the Federal Home Loan Bank of Pittsburgh (“FHLB-Pittsburgh”) and Atlantic Community Bankers Bank (“ACBB”). These investments do not have a readily determinable fair value because their ownership is restricted and they can be sold back only to the FHLB-Pittsburgh, ACBB or to another member institution. Therefore, these investments are carried at cost. At December 31, 2015, the Corporation held $ 5,707,000 35,000 5,273,000 35,000 Management evaluates the restricted investment in bank stocks for impairment on an annual basis. Management’s determination of whether these investments are impaired is based on management’s assessment of the ultimate recoverability of the cost of these investments rather than by recognizing temporary declines in value. The following factors were evaluated to determine the ultimate recoverability of the cost of the Corporation’s restricted investment in bank stocks; (i) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted; (ii) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank; (iii) the impact of legislative and regulatory changes on the institutions and, accordingly, on the customer base of the correspondent bank; and (iv) the liquidity position of the correspondent bank. Based on the analysis of these factors, management determined that no impairment charge was necessary related to the restricted investment in bank stocks during 2015, 2014 or 2013.
Finance, Loans and Leases Receivable, Policy [Policy Text Block]	Loans Net loans are stated at their outstanding unpaid principal balances, net of deferred fees or costs, unearned income and the allowance for loan losses. Interest on loans is recognized as income over the term of each loan, generally, by the accrual method. Loan origination fees and certain direct loan origination costs have been deferred with the net amount amortized using the straight line method or the interest method over the contractual life of the related loans as an interest yield adjustment. Residential mortgage loans held for resale are carried at the lower of cost or market on an aggregate basis determined by independent pricing from appropriate federal or state agency investors. These loans are sold without recourse. The loans receivable portfolio is segmented into commercial, residential and consumer loans. Commercial loans consist of the following classes: Commercial and Industrial and Commercial Real Estate. Commercial and Industrial Lending The Corporation originates commercial and industrial loans primarily to businesses located in its primary market area and surrounding areas. These loans are used for various business purposes, which include short-term loans and lines of credit to finance machinery and equipment, inventory and accounts receivable. Generally, the maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Most business lines of credit are written on demand and are reviewed annually. Commercial and industrial loans are generally secured with short-term assets; however, in many cases, additional collateral such as real estate is provided as additional security for the loan. Loan-to-value maximum thresholds have been established by the Corporation and are specific to the type of collateral. Collateral values may be determined using invoices, inventory reports, accounts receivable aging reports, business financial statements, collateral appraisals, etc. Commercial and industrial loans are typically secured by personal guarantees of the borrower. In underwriting commercial and industrial loans, an analysis is performed to evaluate the borrower's character and capacity to repay the loan, the adequacy of the borrower's capital and collateral, as well as the conditions affecting the borrower. Evaluation of the borrower's past, present and future cash flows is also an important aspect of the Corporation's analysis of the borrower’s ability to repay. Commercial and industrial loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions. Commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from cash flows from the borrower’s primary business activities. As a result, the availability of funds for the repayment of commercial and industrial loans is dependent on the success of the business itself, which in turn, is likely to be dependent upon the general economic environment. Commercial Real Estate Lending The Corporation engages in commercial real estate lending in its primary market area and surrounding areas. The Corporation’s commercial real estate portfolio is secured primarily by commercial retail space, commercial office buildings, residential housing and hotels. Generally, commercial real estate loans have terms that do not exceed twenty years, have loan-to-value ratios of up to eighty percent of the value of the collateral property, and are typically secured by personal guarantees of the borrowers. In underwriting these loans, the Corporation performs a thorough analysis of the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. The value of the property is determined by either independent appraisers or internal evaluations by Bank officers. Commercial real estate loans generally present a higher level of risk than residential real estate secured loans. Repayment of loans secured by commercial real estate is typically dependent upon the successful operation of the related real estate project and/or the effect of the general economic conditions on income producing properties. Residential Real Estate Lending (Including Home Equity) The Corporation’s residential real estate portfolio is comprised of one-to-four family residential mortgage loan originations, home equity term loans and home equity lines of credit. These loans are generated by the Corporation’s marketing efforts, its present customers, walk-in customers and referrals. These loans originate primarily within or with customers from the Corporation’s market area. The Corporation’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The Corporation offers fixed-rate mortgage loans with terms up to a maximum of twenty years for both permanent structures and those under construction. Generally, the majority of the Corporation’s residential mortgage loans originate with a loan-to-value of eighty percent or less, or those with primary mortgage insurance at ninety-five percent or less. Generally, home equity term loans are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of fifteen years. Generally, home equity lines of credit are secured by the borrower’s primary residence with a maximum loan-to-value of eighty percent and a maximum term of twenty years. In underwriting one-to-four family residential mortgage loans, the Corporation evaluates the borrower’s ability to make monthly payments, the borrower’s repayment history and the value of the property securing the loan. The ability and willingness to repay is determined by the borrower’s employment history, current financial conditions and credit background. A majority of the properties securing residential real estate loans made by the Corporation are appraised by independent appraisers. The Corporation generally requires mortgage loan borrowers to obtain an attorney’s title opinion or title insurance and fire and property insurance, including flood insurance, if applicable. Residential mortgage loans, home equity term loans and home equity lines of credit generally present a lower level of risk than consumer loans because they are secured by the borrower’s primary residence. Risk is increased when the Corporation is in a subordinate position, especially to another lender, for the loan collateral. Consumer Lending The Corporation offers a variety of secured and unsecured consumer loans, including vehicle loans, stock loans and loans secured by financial institution deposits. These loans originate primarily within or with customers from the market area. Consumer loan terms vary according to the type and value of collateral and creditworthiness of the borrower. In underwriting personal loans, a thorough analysis is performed regarding the borrower’s willingness and financial ability to repay the loan as agreed. The ability to repay is determined by the borrower’s employment history, current financial condition and credit background. Consumer loans may entail greater credit risk than residential real estate loans, particularly in the case of personal loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, repossessed collateral for a defaulted personal loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, personal loan collections are dependent on the borrower’s continuing financial stability and therefore, are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.
Delinquent Loans [Policy Text Block]	Delinquent Loans Generally, a loan is considered to be past-due when scheduled loan payments are in arrears 10 Commercial and Industrial and Commercial Real Estate loans are charged off in whole or in part when they become sufficiently delinquent based upon the terms of the underlying loan contract and when a collateral deficiency exists. Because all or part of the contractual cash flows are not expected to be collected, the loan is considered to be impaired, and the Bank estimates the impairment based on its analysis of the cash flows or collateral estimated at fair value less cost to sell. Residential Real Estate and Consumer loans are charged off when they become sufficiently delinquent based upon the terms of the underlying loan contract and when the value of the underlying collateral is not sufficient to support the loan balance and a loss is expected. At that time, the amount of estimated collateral deficiency, if any, is charged off for loans secured by collateral, and all other loans are charged off in full. Loans with collateral are charged down to the estimated fair value of the collateral less cost to sell. Loans in which the borrower is in bankruptcy are considered on a case by case basis and are either charged off or reaffirmed by the borrower. Generally, a loan is classified as non-accrual and the accrual of interest on such a loan is discontinued when the contractual payment of principal or interest has become 90
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]	Allowance for Loan Losses The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance for loan losses and subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is maintained at a level estimated by management to be adequate to absorb potential loan losses. Management’s periodic evaluation of the adequacy of the allowance for loan losses is based on the Corporation’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are individually classified as impaired. Select loans are not aggregated for collective impairment evaluation, as such; all loans are subject to individual impairment evaluation should the facts and circumstances pertinent to a particular loan suggest that such evaluation is necessary. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan is impaired, a portion of the allowance may be allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from collateral. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loans may be reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component covers all other loans not identified as impaired and is based on historical losses and qualitative factors. The historical loss component of the allowance is determined by losses recognized by portfolio segment over a time period that management has determined represents the current credit cycle. Qualitative factors impacting each portfolio segment may include: delinquency trends, loan volume trends, Bank policy changes, management processes and oversight, economic trends (including change in consumer and business disposable incomes, unemployment and under-employment levels, and other conditions), concentrations by industry or product, internal and external loan review processes, collateral value and market conditions, and external factors including regulatory issues and competition. The unallocated component of the allowance is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. A reserve for unfunded lending commitments is provided for possible credit losses on off-balance sheet credit exposures. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and, if necessary, is recorded in other liabilities on the Consolidated Balance Sheet. As of December 31, 2015 and 2014, the amount of the reserve for unfunded lending commitments was $ 184,000 0 The Corporation is subject to periodic examination by its federal and state examiners, and may be required by such regulators to recognize additions to the allowance for loan losses based on their assessment of credit information available to them at the time of their examinations. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Under current accounting standards, the allowance for loan losses related to impaired loans is based on discounted cash flows using the loan’s effective interest rate at inception or the fair value of the collateral for certain collateral dependent loans. The restructuring of a loan is considered a “troubled debt restructuring” if both the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the Bank has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, and (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan. A less common concession is the forgiveness of a portion of the principal. The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. Loans modified in a troubled debt restructuring are considered impaired and may or may not be placed on non-accrual status until the Bank determines the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrates a period of performance according to the restructured terms of six months. The Bank utilizes a risk grading matrix as a tool for managing credit risk in the loan portfolio and assigns an asset quality rating (risk grade) to all Commercial and Industrial, Commercial Real Estate, Residential Real Estate and Consumer borrowings. An asset quality rating is assigned using the guidance provided in the Bank’s loan policy. Primary responsibility for assigning the asset quality rating rests with the lender. The asset quality rating is validated periodically by both an internal and external loan review process. The commercial loan grading system focuses on a borrower’s financial strength and performance, experience and depth of management, primary and secondary sources of repayment, the nature of the business and the outlook for the particular industry. Primary emphasis is placed on the financial condition and trends. The grade also reflects current economic and industry conditions; as well as other variables such as liquidity, cash flow, revenue/earnings trends, management strengths or weaknesses, quality of financial information, and credit history. The loan grading system for Residential Real Estate and Consumer loans focuses on the borrower’s credit score and credit history, debt-to-income ratio and income sources, collateral position and loan-to-value ratio, as well as other variables such as current economic conditions, and individual strengths and weaknesses. Risk grade characteristics are as follows: Risk Grade 1 – MINIMAL RISK through Risk Grade 6 – MANAGEMENT ATTENTION (Pass Grade Categories) Risk is evaluated via examination of several attributes including but not limited to financial trends, strengths and weaknesses, likelihood of repayment when considering both cash flow and collateral, sources of repayment, leverage position, management expertise, and repayment history. At the low-risk end of the rating scale, a risk grade of 1 - Minimal Risk is the grade reserved for loans with exceptional credit fundamentals and virtually no risk of default or loss. Loan grades then progress through escalating ratings of 2 through 6 based upon risk. Risk Grade 2 - Modest Risk are loans with sufficient cash flows; Risk Grade 3 - Average Risk are loans with key balance sheet ratios slightly above the borrower’s peers; Risk Grade 4 - Acceptable Risk are loans with key balance sheet ratios usually near the borrower’s peers, but one or more ratios may be higher; and Risk Grade 5 – Marginally Acceptable are loans with strained cash flow, increasing leverage and/or weakening markets. Risk Grade 6 - Management Attention are loans with weaknesses resulting from declining performance trends and the borrower’s cash flows may be temporarily strained. Loans in this category are performing according to terms, but present some type of potential concern. Risk Grade 7 - SPECIAL MENTION (Non-Pass Category) Generally, these loans or assets are currently protected, but are “Potentially Weak”. They constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. Assets in this category are currently protected but have potential weakness which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. No loss of principal or interest is envisioned; however, they constitute an undue credit risk that may be minor but is unwarranted in light of the circumstances surrounding a specific asset. Risk is increasing beyond that at which the loan originally would have been granted. Historically, cash flows are inconsistent; financial trends show some deterioration. Liquidity and leverage are above industry averages. Financial information could be incomplete or inadequate. A Special Mention asset has potential weaknesses that deserve management’s close attention. Risk Grade 8 - SUBSTANDARD (Non-Pass Category) Generally, these assets are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have “well-defined” weaknesses that jeopardize the full liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the aggregate amount of substandard assets is not fully covered by the liquidation of the collateral used as security. Substandard loans have a high probability of payment default; are inadequately protected by the current sound net worth, paying capacity of the borrower, or pledged collateral; and may have other well-defined weaknesses. Such assets require more intensive supervision by Bank Management. Risk Grade 9 - DOUBTFUL (Non-Pass Category) Generally, loans graded doubtful have all the weaknesses inherent in a substandard loan with the added factor that the weaknesses are pronounced to a point whereby the basis of current information, conditions, and values, collection or liquidation in full is deemed to be highly improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to strengthen the asset, its classification is deferred until, for example, a proposed merger, acquisition, liquidation procedure, capital injection, perfection of liens on additional collateral and/or refinancing plan is completed. Loans are graded doubtful if they contain weaknesses so serious that collection or liquidation in full is questionable.
Property, Plant and Equipment, Policy [Policy Text Block]	Premises and Equipment Premises, improvements, and equipment are stated at cost less accumulated depreciation computed principally utilizing the straight-line method over the estimated useful lives of the assets. Long-lived assets are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying value may not be recovered. Maintenance and minor repairs are charged to operations as incurred. The cost and accumulated depreciation of the premises and equipment retired or sold are eliminated from the property accounts at the time of retirement or sale, and the resulting gain or loss is reflected in current operations.
Transfers and Servicing of Financial Assets, Policy [Policy Text Block]	Mortgage Servicing Rights The Corporation originates and sells real estate loans to investors in the secondary mortgage market. After the sale, the Corporation may retain the right to service these loans. When originated mortgage loans are sold and servicing is retained, a servicing asset is capitalized based on relative fair value at the date of sale. Servicing assets are amortized as an offset to other fees in proportion to, and over the period of, estimated net servicing income. The servicing asset is included in other assets in the Consolidated Balance Sheets. Gains or losses on sales of mortgage loans are recognized based on the differences between the selling price and the carrying value of the related mortgage loans sold.
Life Settlement Contracts, Policy [Policy Text Block]	The cash surrender value of bank owned life insurance is carried as an asset, and changes in cash surrender value are recorded as non-interest income. The Bank entered into agreements to provide post-retirement benefits to two retired employees in the form of life insurance payable to the employee’s beneficiaries upon their death through endorsement split dollar life insurance arrangements. The Bank’s accrued liabilities for this benefit agreement as of December 31, 2015 and 2014 was $ 43,500 60,000 15,800 3,000 2,000
Interest in Unincorporated Joint Ventures or Partnerships, Policy [Policy Text Block]	Investments in Low-Income Housing Partnerships The Bank is a limited partner in real estate ventures that own and operate affordable residential low-income housing apartment buildings for elderly and mentally challenged adult residents. The investments are accounted for under the effective yield method. Under the effective yield method, the Bank recognizes tax credits as they are allocated and amortizes the initial cost of the investment to provide a constant effective yield over the period that the tax credits are allocated to the Bank. Under this method, the tax credits allocated, net of any amortization of the investment in the limited partnerships, are recognized in the consolidated statements of income as a component of income tax expense. The amount of tax credits allocated to the Bank were $ 230,000 230,000 266,000 167,000 159,000 191,000 590,000
Goodwill and Intangible Assets, Policy [Policy Text Block]	Goodwill and Core Deposit Intangibles Goodwill resulted from the acquisition of the Pocono Community Bank in November 2007 and of certain fixed and operating assets acquired and deposit liabilities assumed of the branch of another financial institution in Danville, Pennsylvania, in January 2004. Such goodwill represents the excess cost of the acquired assets relative to the assets fair value at the dates of acquisition. During the first quarter of 2008, $ 152,000 Intangible assets are comprised of core deposit intangibles and premium discount (negative premium) on certificates of deposit acquired. The core deposit intangible was being amortized over the average life of the deposits acquired as determined by an independent third party. Premium discount (negative premium) on acquired certificates of deposit resulted from the valuation of certificate of deposit accounts by an independent third party. The book value of certificates of deposit acquired was greater than their fair value at the date of acquisition which resulted in a negative premium due to higher cost of the certificates of deposit compared to the cost of similar term financing. The core deposit intangible was subject to impairment testing whenever events or changes in circumstances indicate its carrying amount may not reflect its benefit. As of June 30, 2015, the core deposit intangible was fully amortized.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock Based Compensation The Corporation adopted a stock option incentive plan in 1998. Compensation cost is recognized for stock options to employees based on the fair value of these awards at the date of grant. A Black-Scholes Option Pricing Model is utilized to estimate the fair value of stock options. Compensation expense is recognized over the requisite service period. The Plan expired in 2008, and therefore, no stock options are available for issuance. After adjustments for the effects of stock dividends, options exercised and options forfeited, there remains 1,500
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy [Policy Text Block]	Foreclosed Assets Held for Resale Real estate properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell on the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed and if fair value less costs to sell declines subsequent to foreclosure, a valuation allowance is recorded through expense. Revenues derived from and costs to maintain the assets and subsequent gains and losses on sales are included in non-interest expense on the Consolidated Statements of Income.
Income Tax, Policy [Policy Text Block]	Income Taxes The Corporation accounts for income taxes in accordance with income tax accounting guidance FASB ASC Topic 740, Income Taxes. Current income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Corporation determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of the evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Corporation accounts for uncertain tax positions if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50%; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. The Corporation recognizes interest and penalties on income taxes, if any, as a component of income tax expense.
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Corporation. Potential common shares that may be issued by the Corporation relate solely to outstanding stock options and are determined using the treasury stock method. (In thousands, except earnings per share) Year Ended December 31, 2015 2014 2013 Net income $ 9,172 $ 10,211 $ 10,273 Weighted-average common shares outstanding 5,588 5,538 5,481 Basic earnings per share $ 1.64 $ 1.84 $ 1.87 Weighted-average common shares outstanding 5,588 5,538 5,481 Common stock equivalents due to effect of stock options 2 4 5 Total weighted-average common shares and equivalents 5,590 5,542 5,486 Diluted earnings per share $ 1.64 $ 1.84 $ 1.87
Treasury Stock [Policy Text Block]	The purchase of the Corporation’s common stock is recorded at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a first-in-first-out basis.
Trust Assets And Income [Policy Text Block]	Trust Assets and Revenues Property held by the Corporation in a fiduciary or agency capacity for its customers is not included in the accompanying consolidated financial statements since such items are not assets of the Corporation. Assets held in Trust were $ 112,120,000 111,513,000
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Income (Loss) The Corporation 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 net unrealized holding gains (losses) on the available-for-sale investment securities portfolio and unrealized losses related to equity securities which have been determined to be other-than temporarily impaired. The Corporation has elected to report these effects on the Consolidated Statements of Comprehensive Income (Loss).
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Standards Updates (“ASU”) Except as disclosed below, there were no new accounting pronouncements affecting the Corporation during the year ended December 31, 2015 that were not already adopted by the Corporation in previous periods. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition (Topic 605). In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842)
Advertising Costs, Policy [Policy Text Block]	Advertising Costs It is the Corporation’s policy to expense advertising costs in the period in which they are incurred.
Stockholders' Equity, Policy [Policy Text Block]	Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block]	Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the consolidated balance sheet when they are funded.

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	(In thousands, except earnings per share) Year Ended December 31, 2015 2014 2013 Net income $ 9,172 $ 10,211 $ 10,273 Weighted-average common shares outstanding 5,588 5,538 5,481 Basic earnings per share $ 1.64 $ 1.84 $ 1.87 Weighted-average common shares outstanding 5,588 5,538 5,481 Common stock equivalents due to effect of stock options 2 4 5 Total weighted-average common shares and equivalents 5,590 5,542 5,486 Diluted earnings per share $ 1.64 $ 1.84 $ 1.87

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Unrealized Gain (Loss) on Investments [Table Text Block]	The amortized cost, related estimated fair value, and unrealized gains and losses for investment securities classified as “Available-For-Sale” or “Held-to-Maturity” were as follows at December 31, 2015 and 2014: (Dollars in thousands) Available-for-Sale Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2015: U.S. Treasury securities $ 1,022 $ — $ (1) $ 1,021 Obligations of U.S. Government Corporations and Agencies: Mortgage-backed 113,847 37 (1,410) 112,474 Other 21,554 117 (79) 21,592 Obligations of state and political subdivisions 195,297 5,425 (408) 200,314 Corporate debt securities 49,162 10 (1,339) 47,833 Marketable equity securities 1,194 813 — 2,007 Total $ 382,076 $ 6,402 $ (3,237) $ 385,241 (Dollars in thousands) Held-to-Maturity Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2015: Obligations of U.S. Government Corporations and Agencies: Mortgage-backed $ 26 $ 1 $ — $ 27 Other — — — — Total $ 26 $ 1 $ — $ 27 (Dollars in thousands) Available-for-Sale Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2014: U.S. Treasury securities $ 11,356 $ 24 $ (2) $ 11,378 Obligations of U.S. Government Corporations and Agencies: Mortgage-backed 112,146 1,055 (487) 112,714 Other 26,246 270 (6) 26,510 Obligations of state and political subdivisions 151,565 6,127 (469) 157,223 Corporate debt securities 38,499 112 (825) 37,786 Marketable equity securities 1,208 867 (20) 2,055 Total $ 341,020 $ 8,455 $ (1,809) $ 347,666 (Dollars in thousands) Held-to-Maturity Securities Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2014: Obligations of U.S. Government Corporations and Agencies: Mortgage-backed $ 56 $ 2 $ — $ 58 Other 1,000 2 — 1,002 Total $ 1,056 $ 4 $ — $ 1,060
Investments Classified by Contractual Maturity Date [Table Text Block]	The amortized cost and fair value of securities, by contractual maturity, are shown below at December 31, 2015. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Available for Sale Held to Maturity Amortized Amortized Cost Fair Value Cost Fair Value 1 year or less $ 1,946 $ 1,977 $ — $ — Over 1 year through 5 years 54,300 54,589 — — Over 5 years through 10 years 119,231 119,190 — — Over 10 years 91,558 95,004 — — Mortgage-backed securities 113,847 112,474 26 27 Marketable equity securities 1,194 2,007 — — $ 382,076 $ 385,241 $ 26 $ 27
Schedule of Unrealized Loss on Investments [Table Text Block]	In accordance with disclosures required by FASB ASC 320-10-50, Investments - Debt and Equity Securities December 31, 2015 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available-for-Sale: U.S. Treasury securities $ 1,021 $ (1) $ — $ — $ 1,021 $ (1) Obligations of U.S. Government Corporations and Agencies: Mortgage-backed 86,618 (1,177) 11,234 (233) 97,852 (1,410) Other 12,962 (79) — — 12,962 (79) Obligations of state and political subdivisions 26,163 (258) 8,105 (150) 34,268 (408) Corporate debt securities 27,527 (531) 19,433 (808) 46,960 (1,339) Marketable equity securities — — — — — — $ 154,291 $ (2,046) $ 38,772 $ (1,191) $ 193,063 $ (3,237) December 31, 2014 (Dollars in thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available-for-Sale: U.S. Treasury securities $ 6,030 $ (2) $ — $ — $ 6,030 $ (2) Obligations of U.S. Government Corporations and Agencies: Mortgage-backed 19,823 (230) 17,099 (257) 36,922 (487) Other 7,154 (6) — — 7,154 (6) Obligations of state and political subdivisions 21,459 (94) 18,273 (375) 39,732 (469) Corporate debt securities 22,227 (542) 12,066 (283) 34,293 (825) Marketable equity securities 30 (20) — — 30 (20) $ 76,723 $ (894) $ 47,438 $ (915) $ 124,161 $ (1,809)

LOANS AND ALLOWANCE FOR LOAN 33

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Financing Receivable Credit Quality Indicators [Table Text Block]	(Dollars in thousands) Commercial and Industrial Commercial Real Estate 2015 2014 2015 2014 Grade: 1-6 Pass $ 80,730 $ 64,459 $ 242,546 $ 237,404 7 Special Mention 4,194 47 3,890 11,008 8 Substandard — 21 12,238 5,472 9 Doubtful — — — — Add (deduct): Unearned discount and — — — — Net deferred loan fees and costs 150 129 344 38 Total loans $ 85,074 $ 64,656 $ 259,018 $ 253,922 Residential Real Estate Including Home Equity Consumer Loans 2015 2014 2015 2014 Grade: 1-6 Pass $ 163,690 $ 161,122 $ 5,764 $ 5,248 7 Special Mention 1,667 520 26 21 8 Substandard 1,245 1,640 4 9 9 Doubtful — — — — Add (deduct): Unearned discount and (15) — — (40) Net deferred loan fees and costs 41 271 96 92 Total loans $ 166,628 $ 163,553 $ 5,890 $ 5,330 Total Loans 2015 2014 Grade: 1-6 Pass $ 492,730 $ 468,233 7 Special Mention 9,777 11,596 8 Substandard 13,487 7,142 9 Doubtful — — Add (deduct): Unearned discount and (15) (40) Net deferred loan fees and costs 631 530 Total loans $ 516,610 $ 487,461
Allowance for Credit Losses on Financing Receivables [Table Text Block]	The activity in the allowance for loan losses, by loan class, is summarized below for the years indicated. (Dollars in thousands) Commercial Commercial Residential and Industrial Real Estate Real Estate Consumer Unallocated Total 2015 Allowance for Loan Losses: Beginning balance $ 542 $ 3,176 $ 1,928 $ 107 $ 637 $ 6,390 Charge-offs (2) (1,759) (210) (45) — (2,016) Recoveries 22 59 1 6 — 88 Provision 163 2,507 58 28 (479) 2,277 Ending Balance $ 725 $ 3,983 $ 1,777 $ 96 $ 158 $ 6,739 Ending balance: individually evaluated for impairment $ — $ 309 $ 31 $ — $ — $ 340 Ending balance: collectively evaluated for impairment $ 725 $ 3,674 $ 1,746 $ 96 $ 158 $ 6,399 Loans Receivable: Ending Balance $ 85,074 $ 259,018 $ 166,628 $ 5,890 $ — $ 516,610 Ending balance: individually evaluated for impairment $ 399 $ 12,057 $ 911 $ — $ — $ 13,367 Ending balance: collectively evaluated for impairment $ 84,675 $ 246,961 $ 165,717 $ 5,890 $ — $ 503,243 (Dollars in thousands) Commercial Commercial Residential and Industrial Real Estate Real Estate Consumer Unallocated Total 2014 Allowance for Loan Losses: Beginning balance $ 776 $ 3,320 $ 1,565 $ 53 $ 805 $ 6,519 Charge-offs (107) (328) (209) (47) — (691) Recoveries 31 81 14 3 — 129 Provision (158) 103 558 98 (168) 433 Ending Balance $ 542 $ 3,176 $ 1,928 $ 107 $ 637 $ 6,390 Ending balance: individually evaluated for impairment $ — $ 38 $ 81 $ — $ — $ 119 Ending balance: collectively evaluated for impairment $ 542 $ 3,138 $ 1,847 $ 107 $ 637 $ 6,271 Loans Receivable: Ending Balance $ 64,656 $ 253,922 $ 163,553 $ 5,330 $ — $ 487,461 Ending balance: individually evaluated for impairment $ 399 $ 5,350 $ 1,291 $ 4 $ — $ 7,044 Ending balance: collectively evaluated for impairment $ 64,257 $ 248,572 $ 162,262 $ 5,326 $ — $ 480,417 (Dollars in thousands) Commercial Commercial Residential and Industrial Real Estate Real Estate Consumer Unallocated Total 2013 Allowance for Loan Losses: Beginning balance $ 573 $ 2,837 $ 1,524 $ 80 $ 758 $ 5,772 Charge-offs (17) (290) (348) (39) — (694) Recoveries 24 31 5 9 — 69 Provision 196 742 384 3 47 1,372 Ending Balance $ 776 $ 3,320 $ 1,565 $ 53 $ 805 $ 6,519 Ending balance: individually evaluated for impairment $ — $ 125 $ 15 $ — $ — $ 140 Ending balance: collectively evaluated for impairment $ 776 $ 3,195 $ 1,550 $ 53 $ 805 $ 6,379 Loans Receivable: Ending Balance $ 60,822 $ 225,405 $ 154,675 $ 5,616 $ — $ 446,518 Ending balance: individually evaluated for impairment $ 21 $ 5,022 $ 931 $ — $ — $ 5,974 Ending balance: collectively evaluated for impairment $ 60,801 $ 220,383 $ 153,744 $ 5,616 $ — $ 440,544
Troubled Debt Restructurings on Financing Receivables [Table Text Block]	(Dollars in thousands) December 31, December 31, 2015 2014 Non-accrual TDRs $ 477 $ 1,638 Accruing TDRs 10,619 3,070 Total $ 11,096 $ 4,708
Troubled Debt Restructurings On Financing Receivables By Type [Table Text Block]	(Dollars in thousands) Year Ended December 31, 2015 Pre-Modification Post-Modification Year-End Number Outstanding Recorded Outstanding Recorded Recorded of Contracts Investment Investment Investment Commercial and Industrial 1 $ 23 $ 23 $ 20 Commercial Real Estate 7 8,612 8,744 8,727 Consumer — — — — Total 8 $ 8,635 $ 8,767 $ 8,747 (Dollars in thousands) Year Ended December 31, 2014 Pre-Modification Post-Modification Year-End Number Outstanding Recorded Outstanding Recorded Recorded of Contracts Investment Investment Investment Commercial and Industrial 3 $ 397 $ 397 $ 394 Commercial Real Estate 10 1,389 1,476 1,066 Consumer 1 7 7 4 Total 14 $ 1,793 $ 1,880 $ 1,464
Loan Modifications By Type [Table Text Block]	Year Ended December 31, 2015 Year Ended December 31, 2014 Rate Term Payment Number Rate Term Payment Number Modification Modification Modification Modified Modification Modification Modification Modified Commercial and Industrial — 1 — 1 — — 3 3 Commercial Real Estate — 4 3 7 1 4 5 10 Consumer — — — — — — 1 1 Total — 5 3 8 1 4 9 14 Year Ended December 31, 2013 Rate Term Payment Number Modification Modification Modification Modified Commercial and Industrial — — — — Commercial Real Estate 4 2 7 13 Consumer — — — — Total 4 2 7 13
Impaired Financing Receivables [Table Text Block]	The recorded investment, unpaid principal balance, and the related allowance of the Corporation’s impaired loans are summarized below for the periods ended December 31, 2015 and 2014. (Dollars in thousands) December 31, 2015 December 31, 2014 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: Commercial and Industrial $ 399 $ 399 $ — $ 399 $ 545 $ — Commercial Real Estate 7,853 9,524 — 4,828 5,278 — Residential Real Estate 475 657 — 727 892 — Consumer — — — 4 4 — With an allowance recorded: Commercial and Industrial — — — — — — Commercial Real Estate 4,204 4,204 309 522 522 38 Residential Real Estate 436 436 31 564 569 81 Consumer — — — — — — Total $ 13,367 $ 15,220 $ 340 $ 7,044 $ 7,810 $ 119 Total consists of: Commercial and Industrial $ 399 $ 399 $ — $ 399 $ 545 $ — Commercial Real Estate $ 12,057 $ 13,728 $ 309 $ 5,350 $ 5,800 $ 38 Residential Real Estate $ 911 $ 1,093 $ 31 $ 1,291 $ 1,461 $ 81 Consumer $ — $ — $ — $ 4 $ 4 $ — The average recorded investment and interest income recognized for the Corporation’s impaired loans are summarized below for the years ended December 31, 2015, 2014 and 2013. (Dollars in thousands) For the Year Ended For the Year Ended For the Year Ended December 31, 2015 December 31, 2014 December 31, 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded: Commercial and Industrial $ 404 $ 16 $ 228 $ 8 $ 28 $ — Commercial Real Estate 5,971 280 4,409 107 3,950 128 Residential Real Estate 421 3 650 2 754 4 Consumer 2 — 5 1 — — With an allowance recorded: Commercial and Industrial — — — — — — Commercial Real Estate 3,377 267 292 21 189 1 Residential Real Estate 443 — 313 4 66 — Consumer — — — — — — Total $ 10,618 $ 566 $ 5,897 $ 143 $ 4,987 $ 133 Total consists of: Commercial and Industrial $ 404 $ 16 $ 228 $ 8 $ 28 $ — Commercial Real Estate $ 9,348 $ 547 $ 4,701 $ 128 $ 4,139 $ 129 Residential Real Estate $ 864 $ 3 $ 963 $ 6 $ 820 $ 4 Consumer $ 2 $ — $ 5 $ 1 $ — $ —
Schedule of Non-Performing Assets [Table Text Block]	(Dollars in thousands) December 31, December 31, 2015 2014 Commercial and Industrial $ — $ 5 Commercial real estate 1,837 2,678 Residential real estate 911 1,291 Total non-accrual loans 2,748 3,974 Foreclosed assets held for resale 1,472 55 Loans past-due 90 days or more and still accruing 166 10 Total non-performing assets $ 4,386 $ 4,039
Past Due Financing Receivables [Table Text Block]	(Dollars in thousands) 90 Days Or Greater 90 Days Past Due 30-59 Days 60-89 Days or Greater Total Total and Still Past Due Past Due Past Due Past Due Current Loans Accruing December 31, 2015: Commercial and Industrial $ 34 $ — $ — $ 34 $ 85,040 $ 85,074 $ — Commercial Real Estate 316 3 1,484 1,803 257,215 259,018 — Residential Real Estate 1,288 491 1,049 2,828 163,800 166,628 166 Consumer 20 — — 20 5,870 5,890 — Total $ 1,658 $ 494 $ 2,533 $ 4,685 $ 511,925 $ 516,610 $ 166 (Dollars in thousands) 90 Days Or Greater 90 Days Past Due 30-59 Days 60-89 Days or Greater Total Total and Still Past Due Past Due Past Due Past Due Current Loans Accruing December 31, 2014: Commercial and Industrial $ 72 $ 28 $ 5 $ 105 $ 64,551 $ 64,656 $ — Commercial Real Estate 1,657 613 2,375 4,645 249,277 253,922 — Residential Real Estate 1,998 224 1,220 3,442 160,111 163,553 10 Consumer 27 8 — 35 5,295 5,330 — Total $ 3,754 $ 873 $ 3,600 $ 8,227 $ 479,234 $ 487,461 $ 10

MORTGAGE SERVICING RIGHTS (Tabl

MORTGAGE SERVICING RIGHTS (Tables)	12 Months Ended
	Dec. 31, 2015
Transfers and Servicing [Abstract]
Servicing Asset at Amortized Cost [Table Text Block]	The following summarizes mortgage servicing rights capitalized and amortized for the years 2015, 2014 and 2013: (Dollars in thousands) 2015 2014 2013 Balance, January 1 $ 481 $ 521 $ 478 Servicing asset additions 144 83 193 Amortization (132) (123) (150) Balance, December 31 $ 493 $ 481 $ 521

PREMISES AND EQUIPMENT (Tables)

PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	(Dollars in thousands) Estimated Useful Life (in years) 2015 2014 Land N/A $ 3,180 $ 3,180 Buildings 5-40 19,288 19,062 Leasehold improvements 3-20 289 286 Equipment 3-25 8,106 7,938 30,863 30,466 Less: Accumulated depreciation 10,750 9,595 Total $ 20,113 $ 20,871

CORE DEPOSIT INTANGIBLES (Table

CORE DEPOSIT INTANGIBLES (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Core deposit intangibles were comprised of the following at December 31, 2015 and 2014: (Dollars in thousands) Gross Accumulated Carrying Amount Amortization 2015 2014 2015 2014 Core deposit intangibles $ 2,218 $ 2,218 $ 2,218 $ 2,096

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2015
Deposits [Abstract]
Schedule Of Deposit Liabilities [Table Text Block]	(Dollars in thousands) 2015 2014 Non-interest bearing demand $ 107,391 $ 96,530 Interest bearing demand 247,610 185,511 Savings 179,891 177,865 Time certificates of deposits less than $250,000 167,365 184,188 Time certificates of deposits $250,000 or greater 17,197 16,323 Other time 1,144 1,145 Total deposits $ 720,598 $ 661,562
Schedule Of Maturities Of Time Deposits [Table Text Block]	The following is a schedule reflecting classification and remaining maturities of time deposits at December 31, 2015: (Dollars in thousands) Year Ending 2016 $ 79,545 2017 33,757 2018 16,161 2019 32,208 2020 20,262 Thereafter 3,773 $ 185,706
Schedule Of Discrete Deposits [Table Text Block]	At December 31, 2015, the largest two depositors had aggregate deposits of approximately $145,853,000 as follows: School district $ 112,214,000 School district 33,639,000 Total $ 145,853,000

SHORT-TERM BORROWINGS (Tables)

SHORT-TERM BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of Short-term Debt [Table Text Block]	(Dollars in thousands) 2015 2014 Average Average Amount Rate Amount Rate Federal funds purchased $ — 0.00 % $ — 0.76 % Securities sold under agreements to repurchase 20,779 0.25 % 16,730 0.24 % Federal Discount Window — 0.73 % — 0.75 % Federal Home Loan Bank 59,760 0.35 % 56,393 0.30 % $ 80,539 0.32 % $ 73,123 0.28 %
Schedule of Repurchase Agreements [Table Text Block]	(Dollars in thousands) Gross Net Amounts Amounts of Liabilities Offset Presented Gross in the in the Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral Net Liabilities Sheet Sheet Instruments Pledge Amount December 31, 2015 Repurchase agreements (a) $ 20,779 $ — $ 20,779 $ (20,779) $ — $ — December 31, 2014 Repurchase agreements (a) $ 16,730 $ — $ 16,730 $ (16,730) $ — $ — (a) As of December 31, 2015 and 2014, the fair value of securities pledged in connection with repurchase agreements was $ 27,510,000 26,094,000
Schedule Of Remaining Contractual Maturity Of Repurchase Agreements [Table Text Block]	The following table presents the remaining contractual maturity of the master netting arrangement or repurchase agreements as of December 31, 2015. (Dollars in thousands) Remaining Contractual Maturity of the Agreements Overnight Greater and Up to 30 -90 than Continuous 30 days Days 90 Days Total Repurchase agreements and repurchase-to-maturity transactions: U.S. Treasury and/or agency securities $ 20,779 $ — $ — $ — $ 20,779 Total $ 20,779 $ — $ — $ — $ 20,779

LONG-TERM BORROWINGS (Tables)

LONG-TERM BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2015
Long-term Debt, Unclassified [Abstract]
Schedule of Long-term Debt Instruments [Table Text Block]	(Dollars in thousands) 2015 2014 Due 2016, 2.69% $ 5,000 $ 5,000 Due 2017, 1.07% 10,000 10,000 Due 2018, 1.27% to 4.86% 23,000 23,000 Due 2019, 1.79% to 2.11% 20,000 20,000 Due 2020, 1.62% to 1.95% 10,000 5,000 Due 2028, 5.14% 2,000 2,000 $ 70,000 $ 65,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	(Dollars in thousands) 2015 2014 2013 Federal Current $ 1,688 $ 2,571 $ 2,485 Deferred 283 46 (260) Income tax expense $ 1,971 $ 2,617 $ 2,225
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The following is a reconciliation between the income tax expense and the amount of income taxes which would have been provided at the statutory rate of 34%: (Dollars in thousands) 2015 2014 2013 Amount Rate Amount Rate Amount Rate Federal income tax at statutory rate $ 3,789 34.0 % $ 4,362 34.0 % $ 4,249 34.0 % Tax-exempt income (1,374) (12.3) (1,162) (9.1) (1,563) (12.5) Low-income housing credits (230) (2.1) (230) (1.8) (266) (2.1) Bank owned life insurance income (226) (2.0) (231) (1.8) (234) (1.9) Other 12 0.1 (122) (0.9) 39 0.3 Income tax expense and rate $ 1,971 17.7 % $ 2,617 20.4 % $ 2,225 17.8 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	The components of the net deferred tax asset (liability) at December 31, 2015 and 2014 are as follows: (Dollars in thousands) 2015 2014 Deferred Tax Assets: Allowance for loan losses $ 2,291 $ 2,173 Provision for unfunded commitments 63 — Deferred compensation 519 528 Contributions 32 29 Non-accrual interest 34 43 Leases 227 282 Limited partnership investments 71 66 Alternative minimum tax credits 6 279 Tax credits from limited partnerships — 7 Impairment loss on investment securities 6 — Capital and net operating loss carry forwards 35 143 Total 3,284 3,550 Deferred Tax Liabilities: Net unrealized investment securities gains 1,130 2,316 Loan fees and costs 215 180 Accumulated depreciation 814 828 Accretion 72 65 Mortgage servicing rights 49 44 Intangibles 312 328 Total 2,592 3,761 Net Deferred Tax Asset (Liability) $ 692 $ (211)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	Year Ending December 31 2016 132,000 2017 120,000 Total minimum lease payments 252,000 Less amounts representing interest 20,000 Present value of net minimum lease payments $ 232,000

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Schedule of Related Party Transactions [Table Text Block]	(Dollars in thousands) 2015 2014 Balance at January 1 $ 3,658 $ 3,389 Additions 2,096 2,700 Deductions (2,076) (2,431) Balance at December 31 $ 3,678 $ 3,658

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2015
Regulatory Matters [Abstract]
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]	(Dollars in thousands) To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015: Total Capital (to Risk-Weighted Assets) $ 87,605 13.76 % $ 50,951 8.00 % $ 63,689 10.00 % Tier I Capital (to Risk-Weighted Assets) $ 80,682 12.67 % $ 38,213 6.00 % $ 50,951 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Asserts) $ 80,682 12.67 % $ 28,660 4.50 % $ 41,398 6.50 % Tier I Capital (to Average Assets) $ 80,682 8.46 % $ 38,123 4.00 % $ 47,665 5.00 % (Dollars in thousands) To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2014: Total Capital (to Risk-Weighted Assets) $ 83,813 15.07 % $ 44,490 8.00 % $ 55,612 10.00 % Tier I Capital (to Risk-Weighted Assets) $ 77,423 13.92 % $ 22,245 4.00 % $ 33,367 6.00 % Tier I Capital (to Average Assets) $ 77,423 8.63 % $ 35,897 4.00 % $ 44,871 5.00 %

FINANCIAL INSTRUMENTS WITH OF44

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (Tables)	12 Months Ended
	Dec. 31, 2015
Risks and Uncertainties [Abstract]
Schedule Of Concentration Risk, Credit Risk, Financial Instruments, Off-Balance Sheet Risk [Table Text Block]	(Dollars in thousands) 2015 2014 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 79,771 $ 84,983 Financial standby letters of credit $ 475 $ 471 Performance standby letters of credit $ 4,692 $ 5,851

STOCK COMPENSATION PLAN (Tables

STOCK COMPENSATION PLAN (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Information about stock options outstanding at December 31, 2015, 2014 and 2013, is summarized as follows: 2015 2014 2013 Weighted Weighted Weighted Average Average Average Stock Exercise Stock Exercise Stock Exercise Options Price Options Price Options Price Balance at January 1 4,323 $ 18.28 4,823 $ 18.12 11,904 $ 19.90 Exercised (2,037) 18.37 — — (2,034) 21.11 Forfeited/Expired (786) 20.95 (500) 16.75 (5,047) 21.11 Balance at December 31 1,500 $ 16.75 4,323 $ 18.28 4,823 $ 18.12 Exercisable at December 31 1,500 $ 16.75 4,323 $ 18.28 4,823 $ 18.12
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	The following table summarizes information concerning the 1998 Employee Stock Option Plan at December 31, 2015. Options Outstanding Options Exercisable Weighted Weighted Weighted Average Average Average Number Remaining Exercise Number Exercise Year Outstanding* Contractual Life Price Exercisable Price 2007 1,500 2.00 $ 16.75 1,500 $ 16.75 *As adjusted for stock dividend noted above.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	At December 31, 2015 and 2014, investments measured at fair value on a recurring basis and the valuation methods used are as follows: (Dollars in thousands) December 31, 2015 Level 1 Level 2 Level 3 Total Available-for-Sale Securities: U.S. Treasury securities $ — $ 1,021 $ — $ 1,021 Obligations of U.S. Government Corporations and Agencies: Mortgaged-backed — 112,474 — 112,474 Other — 21,592 — 21,592 Obligations of state and political subdivisions — 200,314 — 200,314 Corporate debt securities — 47,833 — 47,833 Marketable equity securities 2,007 — — 2,007 Total $ 2,007 $ 383,234 $ — $ 385,241 (Dollars in thousands) December 31, 2014 Level 1 Level 2 Level 3 Total Available-for-Sale Securities: U.S. Treasury securities $ — $ 11,378 $ — $ 11,378 Obligations of U.S. Government Corporations and Agencies: Mortgaged-backed — 112,714 — 112,714 Other — 26,510 — 26,510 Obligations of state and political subdivisions — 157,223 — 157,223 Corporate debt securities — 37,786 — 37,786 Marketable equity securities 2,055 — — 2,055 Total $ 2,055 $ 345,611 $ — $ 347,666
Fair Value Measurements, Nonrecurring [Table Text Block]	(Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2015 Impaired loans: Commercial and Industrial $ — $ — $ — $ — Commercial Real Estate — — 1,665 1,665 Residential Real Estate — — 631 631 Total impaired loans $ — $ — $ 2,296 $ 2,296 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2014 Impaired loans: Commercial and Industrial $ — $ — $ 3 $ 3 Commercial Real Estate — — 2,073 2,073 Residential Real Estate — — 856 856 Total impaired loans $ — $ — $ 2,932 $ 2,932 At December 31, 2015, there were no nonfinancial assets measured at fair value on a nonrecurring basis. At December 31, 2014, foreclosed assets held for resale measured at fair value on a nonrecurring basis and the valuation methods used are as follows: (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2014 Other foreclosed assets held for resale: Commercial Real Estate $ — $ — $ 55 $ 55 Total foreclosed assets held for resale $ — $ — $ 55 $ 55
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]	The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis that are collateral dependent and for which the Bank has utilized Level 3 inputs to determine the fair value: (Dollars in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value Weighted December 31, 2015 Estimate Valuation Technique Unobservable Input Range Average Impaired loans $ 2,296 Appraisal of collateral 1 , 3 Appraisal adjustments 2 (10%) – (63%) (29%) Foreclosed assets held for sale $ — Appraisal of collateral 1 , 3 Appraisal adjustments 2 (0%) – (0%) (0%) December 31, 2014 Impaired loans $ 2,932 Appraisal of collateral 1 , 3 Appraisal adjustments 2 (0%) – (63%) (37%) Foreclosed assets held for sale $ 55 Appraisal of collateral 1 , 3 Appraisal adjustments 2 (33%) – (46%) (37%) 1 Fair value is generally determined through independent appraisals of the underlying collateral, as defined by Bank regulators. 2 Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value. 3 Includes qualitative adjustments by management and estimated liquidation expenses.
Fair Value, by Balance Sheet Grouping [Table Text Block]	(Dollars in thousands) Carrying Fair Value Measurements at December 31, 2015 Amount Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Cash and due from banks $ 7,474 $ 7,474 $ — $ — $ 7,474 Interest-bearing deposits in other banks 1,534 — 1,534 — 1,534 Time deposits with other banks 1,482 — 1,482 — 1,482 Investment securities available-for-sale 385,241 2,007 383,234 — 385,241 Investment securities held-to-maturity 26 — 27 — 27 Restricted investment in bank stocks 5,742 — 5,742 — 5,742 Net loans 509,871 — — 498,671 498,671 Mortgage servicing rights 493 — — 493 493 Accrued interest receivable 4,086 — 4,086 — 4,086 FINANCIAL LIABILITIES: Deposits 720,598 — 720,341 — 720,341 Short-term borrowings 80,539 — 80,539 — 80,539 Long-term borrowings 70,232 — 71,302 — 71,302 Accrued interest payable 382 — 382 — 382 OFF-BALANCE SHEET FINANCIAL INSTRUMENTS — — — — — (Dollars in thousands) Carrying Fair Value Measurements at December 31, 2014 Amount Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Cash and due from banks $ 7,543 $ 7,543 $ — $ — $ 7,543 Interest-bearing deposits in other banks 424 — 424 — 424 Time deposits with other banks 1,482 — 1,482 — 1,482 Investment securities available-for-sale 347,666 2,055 345,611 — 347,666 Investment securities held-to-maturity 1,056 — 1,060 — 1,060 Restricted investment in bank stocks 5,308 — 5,308 — 5,308 Net loans 481,071 — — 472,687 472,687 Mortgage servicing rights 481 — — 481 481 Accrued interest receivable 3,313 — 3,313 — 3,313 FINANCIAL LIABILITIES: Deposits 661,562 — 661,819 — 661,819 Short-term borrowings 73,123 — 73,123 — 73,123 Long-term borrowings 65,339 — 66,747 — 66,747 Accrued interest payable 399 — 399 — 399 OFF-BALANCE SHEET FINANCIAL INSTRUMENTS — — — — —

PARENT COMPANY FINANCIAL INFO47

PARENT COMPANY FINANCIAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Balance Sheet [Table Text Block]	(Dollars in thousands) December 31, 2015 2014 ASSETS Cash $ 5,548 $ 4,214 Investment in banking subsidiary 101,368 100,552 Investment securities available-for-sale 2,007 2,055 Prepaid expenses and other assets 752 49 TOTAL ASSETS $ 109,675 $ 106,870 LIABILITIES Advances from banking subsidiary $ 1,235 $ 218 Accrued expenses and other liabilities 2 381 TOTAL LIABILITIES 1,237 599 STOCKHOLDERS’ EQUITY Common stock 11,707 11,605 Surplus 33,830 32,674 Retained earnings 66,622 63,485 Accumulated other comprehensive income 2,035 4,330 Treasury stock, at cost (5,756) (5,823) TOTAL STOCKHOLDERS’ EQUITY 108,438 106,271 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 109,675 $ 106,870
Condensed Income Statement [Table Text Block]	STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollars in thousands) Year Ended December 31, 2015 2014 2013 INCOME Dividends from subsidiary bank $ 6,102 $ 7,041 $ 10,416 Net investment securities gains — 187 — Other income 79 76 64 TOTAL INCOME 6,181 7,304 10,480 OPERATING EXPENSES 133 136 162 6,048 7,168 10,318 INCOME TAX (BENEFIT) EXPENSE (33) 43 (61) 6,081 7,125 10,379 EQUITY IN (EXCESS OF) UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY 3,091 3,086 (106) NET INCOME $ 9,172 $ 10,211 $ 10,273
Condensed Statement of Comprehensive Income [Table Text Block]	(Dollars in thousands) Years Ended December 31, 2015 2014 2013 Net Income $ 9,172 $ 10,211 $ 10,273 Other comprehensive income (loss): Unrealized net holding gains (losses) on available-for-sale investment securities arising during the period, net of income taxes of $(19), $13 and $226, respectively (29) 19 332 Less reclassification adjustment for net gains included in net income, net of income taxes of $0, $(76) and $0, respectively — (111) — Less reclassification adjustment for impairment charges on equity securities included in net income, net of income taxes of $5, $0 and $0, respectively 9 — — Equity in other comprehensive income (loss) of banking subsidiary (2,275) 4,476 (12,914) Total other comprehensive income (loss) (2,295) 4,384 (12,582) Total Comprehensive Income (Loss) $ 6,877 $ 14,595 $ (2,309)
Condensed Cash Flow Statement [Table Text Block]	STATEMENTS OF CASH FLOWS (Dollars in thousands) Year Ended December 31, 2015 2014 2013 OPERATING ACTIVITIES Net income $ 9,172 $ 10,211 $ 10,273 Adjustments to reconcile net income to net cash provided by operating activities: Gains on sales of investment securities — (187) — Impairment charges on equity securities 14 — — Deferred income tax expense 63 41 — (Equity in) excess of undistributed earnings of banking subsidiary (3,091) (3,086) 106 (Increase) decrease in prepaid/accrued expenses and other assets/liabilities (1,095) 327 325 Increase (decrease) in advances from banking subsidiary 1,017 (1,318) (8,355) NET CASH PROVIDED BY OPERATING ACTIVITIES 6,080 5,988 2,349 INVESTING ACTIVITIES Proceeds from sales of investment securities available-for-sale — 512 — NET CASH PROVIDED BY INVESTING ACTIVITIES — 512 — FINANCING ACTIVITIES Proceeds from issuance of common stock 1,252 1,121 981 Proceeds from issuance of treasury stock 37 — 43 Dividends paid (6,035) (5,815) (5,716) NET CASH USED IN FINANCING ACTIVITIES (4,746) (4,694) (4,692) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,334 1,806 (2,343) CASH AND CASH EQUIVALENTS, BEGINNING 4,214 2,408 4,751 CASH AND CASH EQUIVALENTS, ENDING $ 5,548 $ 4,214 $ 2,408

SUMMARY OF SIGNIFICANT ACCOUN48

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income	$ 9,172	$ 10,211	$ 10,273
Weighted-average common shares outstanding	5,588	5,538	5,481
Basic earnings per share	$ 1.64	$ 1.84	$ 1.87
Weighted-average common shares outstanding	5,588	5,538	5,481
Common stock equivalents due to effect of stock options	2	4	5
Total weighted-average common shares and equivalents	5,590	5,542	5,486
Diluted earnings per share	$ 1.64	$ 1.84	$ 1.87

SUMMARY OF SIGNIFICANT ACCOUN49

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	3 Months Ended	12 Months Ended
	Mar. 31, 2008USD ($)	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)shares	Dec. 31, 2013USD ($)shares
Available-for-sale Securities, Restricted, Total		$ 5,742,000	$ 5,308,000
Tax Credits On Investments In Low Income Housing Partnerships		230,000	230,000	$ 266,000
Amortization Of Investments In Limited Partnerships		$ 167,000	159,000	$ 191,000
Loan Payments Delinquency Period Beyond Which Loans Considered Past Due		10 days
Loan Payments Delinquency Period Beyond Which Loans Considered Non Accrual		90 days
Assets Held-in-trust		$ 112,120,000	$ 111,513,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares		1,500	4,323	4,823
Increase (Decrease) in Deferred Compensation		$ 15,800
Residential Mortgage Loans [Member]
Term of Loan Offering		20 years
Maximum Loan to Value Ratio		eighty percent
Commercial Real Estate Portfolio Segment [Member]
Term of Loan Offering		20 years
Maximum Loan to Value Ratio		eighty percent
Residential Portfolio Segment [Member] | Letter of Credit [Member] | Maximum [Member]
Term of Loan Offering		20 years
Maximum Loan to Value Ratio		eighty percent
Residential Portfolio Segment [Member] | Home Equity Term Loans [Member]
Term of Loan Offering		15 years
Maximum Loan to Value Ratio		eighty percent
Reserve for Off-balance Sheet Activities [Member]
Valuation Allowances and Reserves, Balance, Ending Balance		$ 184,000	$ 0
Limited Partner [Member]
Real Estate Investments, Net, Total		590,000
Bank Owned Life Insurance [Member]
Deferred Compensation Arrangement with Individual, Recorded Liability		43,500	60,000
Deferred Compensation Arrangement with Individual, Compensation Expense		(16,500)	3,000	$ 2,000
Pocono Community Bank [Member]
Goodwill, Purchase Accounting Adjustments	$ 152,000
Federal Home Loan Bank of Pittsburgh [Member]
Available-for-sale Securities, Restricted, Total		5,707,000	5,273,000
Atlantic Central Bankers Bank [Member]
Available-for-sale Securities, Restricted, Total		$ 35,000	$ 35,000
Full Service Offices [Member]
Number of Stores		18
Automated Teller [Member]
Number of Stores		20

RESTRICTED CASH BALANCES (Detai

RESTRICTED CASH BALANCES (Details Textual) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Cash Segregated under Other Regulations	$ 1,332,000	$ 1,189,000
Deposits with Other Federal Home Loan Banks	$ 1,525,000	$ 414,000

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Available-for-Sale Securities
Amortized Cost	$ 382,076	$ 341,020
Gross Unrealized Gains	6,402	8,455
Gross Unrealized Losses	(3,237)	(1,809)
Fair Value	385,241	347,666
Held-to-Maturity Securities
Amortized Cost	26	1,056
Gross Unrealized Gains	1	4
Gross Unrealized Losses	0	0
Investment Securities Held-to-Maturity, Estimated Fair Value	27	1,060
US Treasury securities [Member]
Available-for-Sale Securities
Amortized Cost	1,022	11,356
Gross Unrealized Gains	0	24
Gross Unrealized Losses	(1)	(2)
Fair Value	1,021	11,378
Obligations of U.S. Government Corporations and Agencies Mortgage-backed [Member]
Available-for-Sale Securities
Amortized Cost	113,847	112,146
Gross Unrealized Gains	37	1,055
Gross Unrealized Losses	(1,410)	(487)
Fair Value	112,474	112,714
Held-to-Maturity Securities
Amortized Cost	26	56
Gross Unrealized Gains	1	2
Gross Unrealized Losses	0	0
Investment Securities Held-to-Maturity, Estimated Fair Value	27	58
Other Obligations of U.S. Government Corporations and Agencies [Member]
Available-for-Sale Securities
Amortized Cost	21,554	26,246
Gross Unrealized Gains	117	270
Gross Unrealized Losses	(79)	(6)
Fair Value	21,592	26,510
Held-to-Maturity Securities
Amortized Cost	0	1,000
Gross Unrealized Gains	0	2
Gross Unrealized Losses	0	0
Investment Securities Held-to-Maturity, Estimated Fair Value	0	1,002
Obligations of State and Political Subdivisions [Member]
Available-for-Sale Securities
Amortized Cost	195,297	151,565
Gross Unrealized Gains	5,425	6,127
Gross Unrealized Losses	(408)	(469)
Fair Value	200,314	157,223
Corporate debt securities [Member]
Available-for-Sale Securities
Amortized Cost	49,162	38,499
Gross Unrealized Gains	10	112
Gross Unrealized Losses	(1,339)	(825)
Fair Value	47,833	37,786
Marketable equity securities [Member]
Available-for-Sale Securities
Amortized Cost	1,194	1,208
Gross Unrealized Gains	813	867
Gross Unrealized Losses	0	(20)
Fair Value	$ 2,007	$ 2,055

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Available-For-Sale - Amortized cost
1 Year or Less	$ 1,946
1 - 5 Years	54,300
5 - 10 Years	119,231
After 10 Years	91,558
Total	382,076
Available-For-Sale - Estimated fair value
1 Year or Less	1,977
1 - 5 Years	54,589
5 - 10 Years	119,190
After 10 Years	95,004
Total	385,241
Held-to-Maturity - Amortized cost
1 Year or Less	0
1 - 5 Years	0
5 - 10 Years	0
After 10 Years	0
Total	26	$ 1,056
Held-to-Maturity - Estimated fair value
1 Year or Less	0
1 - 5 Years	0
5 - 10 Years	0
After 10 Years	0
Total	27	$ 1,060
Mortgage backed securities [Member]
Available-For-Sale - Amortized cost
Total	113,847
Available-For-Sale - Estimated fair value
Total	112,474
Held-to-Maturity - Amortized cost
Total	26
Held-to-Maturity - Estimated fair value
Total	27
Marketable equity securities [Member]
Available-For-Sale - Amortized cost
Total	1,194
Available-For-Sale - Estimated fair value
Total	$ 2,007

INVESTMENT SECURITIES (Detail53

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Less Than 12 Months
Fair Value	$ 154,291	$ 76,723
Unrealized Loss	(2,046)	(894)
12 Months or More
Fair Value	38,772	47,438
Unrealized Loss	(1,191)	(915)
Total
Fair Value	193,063	124,161
Unrealized Loss	(3,237)	(1,809)
US Treasury Securities [Member]
Less Than 12 Months
Fair Value	1,021	6,030
Unrealized Loss	(1)	(2)
12 Months or More
Fair Value	0	0
Unrealized Loss	0	0
Total
Fair Value	1,021	6,030
Unrealized Loss	(1)	(2)
Obligations of U.S. Government Corporations and Agencies Mortgage-backed [Member]
Less Than 12 Months
Fair Value	86,618	19,823
Unrealized Loss	(1,177)	(230)
12 Months or More
Fair Value	11,234	17,099
Unrealized Loss	(233)	(257)
Total
Fair Value	97,852	36,922
Unrealized Loss	(1,410)	(487)
Other Obligations of U.S. Government Corporations and Agencies [Member]
Less Than 12 Months
Fair Value	12,962	7,154
Unrealized Loss	(79)	(6)
12 Months or More
Fair Value	0	0
Unrealized Loss	0	0
Total
Fair Value	12,962	7,154
Unrealized Loss	(79)	(6)
Obligations of State and Political Subdivisions [Member]
Less Than 12 Months
Fair Value	26,163	21,459
Unrealized Loss	(258)	(94)
12 Months or More
Fair Value	8,105	18,273
Unrealized Loss	(150)	(375)
Total
Fair Value	34,268	39,732
Unrealized Loss	(408)	(469)
Corporate debt securities [Member]
Less Than 12 Months
Fair Value	27,527	22,227
Unrealized Loss	(531)	(542)
12 Months or More
Fair Value	19,433	12,066
Unrealized Loss	(808)	(283)
Total
Fair Value	46,960	34,293
Unrealized Loss	(1,339)	(825)
Marketable equity securities [Member]
Less Than 12 Months
Fair Value	0	30
Unrealized Loss	0	(20)
12 Months or More
Fair Value	0	0
Unrealized Loss	0	0
Total
Fair Value	0	30
Unrealized Loss	$ 0	$ (20)

INVESTMENT SECURITIES (Detail54

INVESTMENT SECURITIES (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Available-for-sale Securities Pledged as Collateral	$ 326,872,000	$ 222,847,000
Held-to-maturity Securities Pledged as Collateral	26,000	1,056,000
Security Owned and Pledged as Collateral, Associated Liabilities, Fair Value	219,576,000	155,895,000
Proceeds from Sale of Available-for-sale Securities, Total	111,799,000	195,847,000	$ 79,981,000
Available-for-sale Securities, Gross Realized Gains	2,186,000	3,354,000	3,546,000
Available-for-sale Securities, Gross Realized Losses	$ 55,000	598,000	646,000
Available For Sale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Less Than Or Equal To One Year	69
Available For Sale Securities In Unrealized Loss Positions Qualitative Disclosure Number Of Positions Greater Than One Year	20
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 14,000	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 55

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Add (deduct): Unearned discount and	$ (15)	$ (40)
Net deferred loan fees and costs	631	530
Total loans	516,610	487,461
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	492,730	468,233
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	9,777	11,596
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	13,487	7,142
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Add (deduct): Unearned discount and	0	0
Net deferred loan fees and costs	150	129
Total loans	85,074	64,656
Commercial and Industrial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	80,730	64,459
Commercial and Industrial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	4,194	47
Commercial and Industrial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	21
Commercial and Industrial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Add (deduct): Unearned discount and	0	0
Net deferred loan fees and costs	344	38
Total loans	259,018	253,922
Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	242,546	237,404
Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,890	11,008
Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	12,238	5,472
Commercial Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Residential Real Estate Including Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Add (deduct): Unearned discount and	(15)	0
Net deferred loan fees and costs	41	271
Total loans	166,628	163,553
Residential Real Estate Including Home Equity [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	163,690	161,122
Residential Real Estate Including Home Equity [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,667	520
Residential Real Estate Including Home Equity [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,245	1,640
Residential Real Estate Including Home Equity [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Add (deduct): Unearned discount and	0	(40)
Net deferred loan fees and costs	96	92
Total loans	5,890	5,330
Consumer Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,764	5,248
Consumer Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	26	21
Consumer Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	4	9
Consumer Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 56

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses, Beginning Balance	$ 6,390	$ 6,519	$ 5,772
Charge-offs	(2,016)	(691)	(694)
Recoveries	88	129	69
Provision	2,277	433	1,372
Financing Receivable, Allowance for Credit Losses, Ending Balance	6,739	6,390	6,519
Ending balance: individually evaluated for impairment	340	119	140
Ending balance: collectively evaluated for impairment	6,399	6,271	6,379
Ending Balance	516,610	487,461	446,518
Ending balance: individually evaluated for impairment	13,367	7,044	5,974
Ending balance: collectively evaluated for impairment	503,243	480,417	440,544
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses, Beginning Balance	542	776	573
Charge-offs	(2)	(107)	(17)
Recoveries	22	31	24
Provision	163	(158)	196
Financing Receivable, Allowance for Credit Losses, Ending Balance	725	542	776
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	725	542	776
Ending Balance	85,074	64,656	60,822
Ending balance: individually evaluated for impairment	399	399	21
Ending balance: collectively evaluated for impairment	84,675	64,257	60,801
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses, Beginning Balance	3,176	3,320	2,837
Charge-offs	(1,759)	(328)	(290)
Recoveries	59	81	31
Provision	2,507	103	742
Financing Receivable, Allowance for Credit Losses, Ending Balance	3,983	3,176	3,320
Ending balance: individually evaluated for impairment	309	38	125
Ending balance: collectively evaluated for impairment	3,674	3,138	3,195
Ending Balance	259,018	253,922	225,405
Ending balance: individually evaluated for impairment	12,057	5,350	5,022
Ending balance: collectively evaluated for impairment	246,961	248,572	220,383
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses, Beginning Balance	1,928	1,565	1,524
Charge-offs	(210)	(209)	(348)
Recoveries	1	14	5
Provision	58	558	384
Financing Receivable, Allowance for Credit Losses, Ending Balance	1,777	1,928	1,565
Ending balance: individually evaluated for impairment	31	81	15
Ending balance: collectively evaluated for impairment	1,746	1,847	1,550
Ending Balance	166,628	163,553	154,675
Ending balance: individually evaluated for impairment	911	1,291	931
Ending balance: collectively evaluated for impairment	165,717	162,262	153,744
Consumer [Member]
Financing Receivable, Allowance for Credit Losses, Beginning Balance	107	53	80
Charge-offs	(45)	(47)	(39)
Recoveries	6	3	9
Provision	28	98	3
Financing Receivable, Allowance for Credit Losses, Ending Balance	96	107	53
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	96	107	53
Ending Balance	5,890	5,330	5,616
Ending balance: individually evaluated for impairment	0	4	0
Ending balance: collectively evaluated for impairment	5,890	5,326	5,616
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses, Beginning Balance	637	805	758
Charge-offs	0	0	0
Recoveries	0	0	0
Provision	(479)	(168)	47
Financing Receivable, Allowance for Credit Losses, Ending Balance	158	637	805
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	158	637	805
Ending Balance	0	0	0
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	$ 0	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 57

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Modifications, Recorded Investment	$ 11,096	$ 4,708
Non-accrual TDRs [Member]
Financing Receivable, Modifications, Recorded Investment	477	1,638
Accruing TDRs [Member]
Financing Receivable, Modifications, Recorded Investment	$ 10,619	$ 3,070

LOANS AND ALLOWANCE FOR LOAN 58

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)Number	Dec. 31, 2014USD ($)Number	Dec. 31, 2013USD ($)Number
Financing Receivable, Modifications, Number of Contracts | Number	8	14	13
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment	$ 8,635	$ 1,793
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment	8,767	1,880	$ 4,382
Receivables, Change in Method of Calculating Impairment, Recorded Investment	$ 8,747	$ 1,464
Commercial and Industrial [Member]
Financing Receivable, Modifications, Number of Contracts | Number	1	3	0
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment	$ 23	$ 397
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment	23	397
Receivables, Change in Method of Calculating Impairment, Recorded Investment	$ 20	$ 394
Commercial Real Estate [Member]
Financing Receivable, Modifications, Number of Contracts | Number	7	10	13
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment	$ 8,612	$ 1,389
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment	8,744	1,476
Receivables, Change in Method of Calculating Impairment, Recorded Investment	$ 8,727	$ 1,066
Consumer [Member]
Financing Receivable, Modifications, Number of Contracts | Number	0	1	0
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment	$ 0	$ 7
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment	0	7
Receivables, Change in Method of Calculating Impairment, Recorded Investment	$ 0	$ 4

LOANS AND ALLOWANCE FOR LOAN 59

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - Number	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Modifications, Number of Contracts	8	14	13
Rate Modification [Member]
Financing Receivable, Modifications, Number of Contracts	0	1	4
Term Modification [Member]
Financing Receivable, Modifications, Number of Contracts	5	4	2
Payment Modification [Member]
Financing Receivable, Modifications, Number of Contracts	3	9	7
Commercial and Industrial [Member]
Financing Receivable, Modifications, Number of Contracts	1	3	0
Commercial and Industrial [Member] | Rate Modification [Member]
Financing Receivable, Modifications, Number of Contracts	0	0	0
Commercial and Industrial [Member] | Term Modification [Member]
Financing Receivable, Modifications, Number of Contracts	1	0	0
Commercial and Industrial [Member] | Payment Modification [Member]
Financing Receivable, Modifications, Number of Contracts	0	3	0
Commercial Real Estate [Member]
Financing Receivable, Modifications, Number of Contracts	7	10	13
Commercial Real Estate [Member] | Rate Modification [Member]
Financing Receivable, Modifications, Number of Contracts	0	1	4
Commercial Real Estate [Member] | Term Modification [Member]
Financing Receivable, Modifications, Number of Contracts	4	4	2
Commercial Real Estate [Member] | Payment Modification [Member]
Financing Receivable, Modifications, Number of Contracts	3	5	7
Consumer [Member]
Financing Receivable, Modifications, Number of Contracts	0	1	0
Consumer [Member] | Rate Modification [Member]
Financing Receivable, Modifications, Number of Contracts	0	0	0
Consumer [Member] | Term Modification [Member]
Financing Receivable, Modifications, Number of Contracts	0	0	0
Consumer [Member] | Payment Modification [Member]
Financing Receivable, Modifications, Number of Contracts	0	1	0

LOANS AND ALLOWANCE FOR LOAN 60

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Recorded Investment
Total	$ 13,367	$ 7,044
Unpaid Principal Balance
Total	15,220	7,810
Related Allowance
Total	340	119
Average Recorded Investment
Total	10,618	5,897	$ 4,987
Interest Income Recognized
Total	566	143	133
Commercial and Industrial [Member]
Recorded Investment
With no related allowance recorded	399	399
With an allowance recorded	0	0
Total	399	399
Unpaid Principal Balance
With no related allowance recorded	399	545
With an allowance recorded	0	0
Total	399	545
Related Allowance
With no related allowance recorded	0	0
With an allowance recorded	0	0
Total	0	0
Average Recorded Investment
With no related allowance recorded	404	228	28
With an allowance recorded	0	0	0
Total	404	228	28
Interest Income Recognized
With no related allowance recorded	16	8	0
With an allowance recorded	0	0	0
Total	16	8	0
Commercial Real Estate [Member]
Recorded Investment
With no related allowance recorded	7,853	4,828
With an allowance recorded	4,204	522
Total	12,057	5,350
Unpaid Principal Balance
With no related allowance recorded	9,524	5,278
With an allowance recorded	4,204	522
Total	13,728	5,800
Related Allowance
With no related allowance recorded	0	0
With an allowance recorded	309	38
Total	309	38
Average Recorded Investment
With no related allowance recorded	5,971	4,409	3,950
With an allowance recorded	3,377	292	189
Total	9,348	4,701	4,139
Interest Income Recognized
With no related allowance recorded	280	107	128
With an allowance recorded	267	21	1
Total	547	128	129
Residential Real Estate [Member]
Recorded Investment
With no related allowance recorded	475	727
With an allowance recorded	436	564
Total	911	1,291
Unpaid Principal Balance
With no related allowance recorded	657	892
With an allowance recorded	436	569
Total	1,093	1,461
Related Allowance
With no related allowance recorded	0	0
With an allowance recorded	31	81
Total	31	81
Average Recorded Investment
With no related allowance recorded	421	650	754
With an allowance recorded	443	313	66
Total	864	963	820
Interest Income Recognized
With no related allowance recorded	3	2	4
With an allowance recorded	0	4	0
Total	3	6	4
Consumer [Member]
Recorded Investment
With no related allowance recorded	0	4
With an allowance recorded	0	0
Total	0	4
Unpaid Principal Balance
With no related allowance recorded	0	4
With an allowance recorded	0	0
Total	0	4
Related Allowance
With no related allowance recorded	0	0
With an allowance recorded	0	0
Total	0	0
Average Recorded Investment
With no related allowance recorded	2	5	0
With an allowance recorded	0	0	0
Total	2	5	0
Interest Income Recognized
With no related allowance recorded	0	1	0
With an allowance recorded	0	0	0
Total	$ 0	$ 1	$ 0

LOANS AND ALLOWANCE FOR LOAN 61

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Total non-accrual loans	$ 2,748	$ 3,974
Foreclosed assets held for resale	1,472	55
Loans past-due 90 days or more and still accruing	166	10
Total non-performing assets	4,386	4,039
Commercial and Industrial [Member]
Total non-accrual loans	0	5
Loans past-due 90 days or more and still accruing	0	0
Commercial real estate [Member]
Total non-accrual loans	1,837	2,678
Loans past-due 90 days or more and still accruing	0	0
Residential real estate [Member]
Total non-accrual loans	911	1,291
Loans past-due 90 days or more and still accruing	$ 166	$ 10

LOANS AND ALLOWANCE FOR LOAN 62

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Total Past Due	$ 4,685	$ 8,227
Current	511,925	479,234
Total Loans	516,610	487,461
90 Days or Greater Past Due and Still Accruing	166	10
Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	1,658	3,754
Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	494	873
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	2,533	3,600
Commercial and Industrial [Member]
Total Past Due	34	105
Current	85,040	64,551
Total Loans	85,074	64,656
90 Days or Greater Past Due and Still Accruing	0	0
Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	34	72
Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	0	28
Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	0	5
Commercial Real Estate [Member]
Total Past Due	1,803	4,645
Current	257,215	249,277
Total Loans	259,018	253,922
90 Days or Greater Past Due and Still Accruing	0	0
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	316	1,657
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	3	613
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	1,484	2,375
Residential Real Estate [Member]
Total Past Due	2,828	3,442
Current	163,800	160,111
Total Loans	166,628	163,553
90 Days or Greater Past Due and Still Accruing	166	10
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	1,288	1,998
Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	491	224
Residential Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	1,049	1,220
Consumer [Member]
Total Past Due	20	35
Current	5,870	5,295
Total Loans	5,890	5,330
90 Days or Greater Past Due and Still Accruing	0	0
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Total Past Due	20	27
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Total Past Due	0	8
Consumer [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Total Past Due	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 63

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 8,767,000	$ 1,880,000	$ 4,382,000
Allowance for Credit Losses, Change in Method of Calculating Impairment	309,000	27,000
Loans Receivable Held-for-sale, Amount	1,929,000	2,201,000
Interest on non-accrual loans, Estimate of accrual amount	230,000	207,000	194,000
Impaired Financing Receivable, Interest Income, Accrual Method, Total	566,000	143,000	133,000
Impaired Financing Receivable Interest Income Non-accrual Method	53,000	20,000	24,000
Financing Receivable, Modifications, Recorded Investment	11,096,000	4,708,000
Foreclosed Assets Held For Resale	1,472,000	55,000
Foreclosed Assets Held For Resale Secured By Land	50,000
Foreclosed Assets Held For Resale Secured By Commercial Real Estate	1,166,000	55,000
Foreclosed Assets Held For Resale Secured By Residential Real Estate	256,000
Commercial Real Estate [Member]
Financing Receivable Modification Not In Compliance Of Terms	249,000	2,087,000
Letter of Credit [Member]
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans	2,185,000
TDRs [Member]
Unfunded Lending Commitments	41,000	0
Commercial and Industrial [Member]
Tax free loans	43,817,000	30,334,000
Financing Receivable, Modifications, Post-Modification Recorded Investment	23,000	397,000
Impaired Financing Receivable, Interest Income, Accrual Method, Total	16,000	8,000	0
Commercial Real Estate [Member]
Tax free loans	2,992,000	3,235,000
Financing Receivable, Modifications, Post-Modification Recorded Investment	8,744,000	1,476,000
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	4,382,000		563,000
Impaired Financing Receivable, Interest Income, Accrual Method, Total	547,000	128,000	129,000
Commercial Real Estate [Member] | Four Loans [Member]
Financing Receivable, Modifications, Subsequent Default, Recorded Investment		188,000
Residential Portfolio Segment [Member]
Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure	221,000	118,000
Impaired Financing Receivable, Interest Income, Accrual Method, Total	3,000	6,000	$ 4,000
Student Housing Holding Company [Member]
Financing Receivable, Modifications, Recorded Investment	4,204,000
Student Housing Holding Company [Member] | TDRs [Member]
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	4,204,000
Developer of a Residental Sub division [Member]
Financing Receivable, Modifications, Recorded Investment	$ 3,217,000
Consumer [Member] | One Loan [Member]
Financing Receivable, Modifications, Subsequent Default, Recorded Investment		$ 4,000

MORTGAGE SERVICING RIGHTS (Deta

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Mortgage servicing rights capitalized and amortized:
Balance, January 1	$ 481	$ 521	$ 478
Servicing asset additions	144	83	193
Amortization	(132)	(123)	(150)
Balance, December 31	$ 493	$ 481	$ 521

MORTGAGE SERVICING RIGHTS (De65

MORTGAGE SERVICING RIGHTS (Details Textual) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Servicing Assets at Fair Value [Line Items]
Servicing Asset at Fair Value, Amount	$ 493,000	$ 481,000
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 98,619,000	$ 92,175,000

PREMISES AND EQUIPMENT (Details

PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Cost	$ 30,863	$ 30,466
Less: Accumulated depreciation	10,750	9,595
Total	20,113	20,871
Land [Member]
Property, Plant and Equipment [Line Items]
Cost	3,180	3,180
Building [Member]
Property, Plant and Equipment [Line Items]
Cost	$ 19,288	19,062
Building [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Building [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	40 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	$ 289	286
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	20 years
Equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	$ 8,106	$ 7,938
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	25 years

PREMISES AND EQUIPMENT (Detai67

PREMISES AND EQUIPMENT (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 1,271,000	$ 1,279,000	$ 1,151,000
Capital leased asset, cost	948,000	948,000
Capital leased asset, accumulated depreciation	857,000	810,000
Capital leased asset, amortization	$ 47,000	$ 48,000	$ 47,000

CORE DEPOSIT INTANGIBLES (Detai

CORE DEPOSIT INTANGIBLES (Details) - Core deposit intangibles [Member] - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,218	$ 2,218
Accumulated Amortization	$ 2,218	$ 2,096

CORE DEPOSIT INTANGIBLES (Det69

CORE DEPOSIT INTANGIBLES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	$ 122,000	$ 273,000	$ 273,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 0

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Non-interest bearing demand	$ 107,391	$ 96,530
Interest bearing demand	247,610	185,511
Savings	179,891	177,865
Time certificates of deposits less than $250,000	167,365	184,188
Time certificates of deposits $250,000 or greater	17,197	16,323
Other time	1,144	1,145
Total deposits	$ 720,598	$ 661,562

DEPOSITS (Details 1)

DEPOSITS (Details 1) $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 79,545
2,017	33,757
2,018	16,161
2,019	32,208
2,020	20,262
Thereafter	3,773
Time Deposits	$ 185,706

DEPOSITS (Details 2)

DEPOSITS (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deposits	$ 720,598	$ 661,562
Two Largest Depositors [Member]
Deposits	145,853,000
School district [Member] | Deposits [Member]
Deposits	112,214,000
School district 2 [Member] | Deposits [Member]
Deposits	$ 33,639,000

SHORT-TERM BORROWINGS (Details)

SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Short-term borrowings, Amount	$ 80,539	$ 73,123
Short-term borrowings, Average Rate	0.32%	0.28%
Federal Funds Purchased [Member]
Short-term Debt [Line Items]
Short-term borrowings, Amount	$ 0	$ 0
Short-term borrowings, Average Rate	0.00%	0.76%
Securities Sold under Agreements to Repurchase [Member]
Short-term Debt [Line Items]
Short-term borrowings, Amount	$ 20,779	$ 16,730
Short-term borrowings, Average Rate	0.25%	0.24%
Federal Discount Window [Member]
Short-term Debt [Line Items]
Short-term borrowings, Amount	$ 0	$ 0
Short-term borrowings, Average Rate	0.73%	0.75%
Federal Home Loan Bank [Member]
Short-term Debt [Line Items]
Short-term borrowings, Amount	$ 59,760	$ 56,393
Short-term borrowings, Average Rate	0.35%	0.30%

SHORT-TERM BORROWINGS (Details

SHORT-TERM BORROWINGS (Details 1) - USD ($) $ in Thousands		Dec. 31, 2015	Dec. 31, 2014
Repurchase agreements
Gross Amounts of Recognized Liabilities	[1]	$ 20,779	$ 16,730
Gross Amounts Offset in the Consolidated Balance Sheet	[1]	0	0
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet	[1]	20,779	16,730
Financial Instruments	[1]	(20,779)	(16,730)
Cash Collateral Pledge	[1]	0	0
Net Amount	[1]	$ 0	$ 0
[1]	As of December 31, 2015 and 2014, the fair value of securities pledged in connection with repurchase agreements was $27,510,000 and $26,094,000, respectively.

SHORT-TERM BORROWINGS (Detail75

SHORT-TERM BORROWINGS (Details 2) $ in Thousands	Dec. 31, 2015USD ($)
Repurchase agreements
Remaining Contractual Maturity of the Agreements	$ 20,779
US Treasury Securities [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	20,779
Maturity Overnight [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	20,779
Maturity Overnight [Member] | US Treasury Securities [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	20,779
Maturity Less than 30 Days [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	0
Maturity Less than 30 Days [Member] | US Treasury Securities [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	0
Maturity 30 to 90 Days [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	0
Maturity 30 to 90 Days [Member] | US Treasury Securities [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	0
Maturity Greater than 90 Days [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	0
Maturity Greater than 90 Days [Member] | US Treasury Securities [Member]
Repurchase agreements
Remaining Contractual Maturity of the Agreements	$ 0

SHORT-TERM BORROWINGS (Detail76

SHORT-TERM BORROWINGS (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Fair value of securities pledged	$ 27,510,000	$ 26,094,000
Federal Funds Purchased [Member]
Short-term Debt [Line Items]
Short-term Debt, Maximum Amount Outstanding During Period	10,000,000
Federal Discount Window [Member]
Short-term Debt [Line Items]
Short-term Debt, Maximum Amount Outstanding During Period	$ 4,649,000
Maximum [Member]
Short-term Debt [Line Items]
Federal funds purchased, securities sold under agreements to repurchase and Federal Home Loan Bank advances, maturity	30 days

LONG-TERM BORROWINGS (Details)

LONG-TERM BORROWINGS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Due 2016, 2.69%	$ 5,000	$ 5,000
Due 2017, 1.07%	10,000	10,000
Due 2018, 1.27% to 4.86%	23,000	23,000
Due 2019, 1.79% to 2.11%	20,000	20,000
Due 2020, 1.62% to 1.95%	10,000	5,000
Due 2028, 5.14%	2,000	2,000
Long-term Debt and Capital Lease Obligations	$ 70,000	$ 65,000

LONG-TERM BORROWINGS (Details T

LONG-TERM BORROWINGS (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Due 2,016	$ 5,000,000	$ 5,000,000
Due 2,017	10,000,000	10,000,000
Long-term Debt and Capital Lease Obligations	70,000,000	65,000,000
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available	270,265,000,000
Pocono Community Bank [Member]
Debt Instrument [Line Items]
Long-term Debt and Capital Lease Obligations	232,000,000	$ 339,000,000
Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Due 2,016	116,000,000
Due 2,017	$ 116,000,000
Convertible Note [Member]
Debt Instrument [Line Items]
Strike Rate	8.00%
Long-term Debt, Gross	$ 10,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal
Current	$ 1,688	$ 2,571	$ 2,485
Deferred	283	46	(260)
Income tax expense	$ 1,971	$ 2,617	$ 2,225

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amount
Federal income tax at statutory rate	$ 3,789	$ 4,362	$ 4,249
Tax-exempt income	(1,374)	(1,162)	(1,563)
Low-income housing credits	(230)	(230)	(266)
Bank owned life insurance income	(226)	(231)	(234)
Other	12	(122)	39
Income tax expense	$ 1,971	$ 2,617	$ 2,225
Rate
Federal income tax at statutory rate	34.00%	34.00%	34.00%
Tax-exempt income	(12.30%)	(9.10%)	(12.50%)
Low-income housing credits	(2.10%)	(1.80%)	(2.10%)
Bank owned life insurance income	(2.00%)	(1.80%)	(1.90%)
Other	0.10%	(0.90%)	0.30%
Income tax expense and rate	17.70%	20.40%	17.80%

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets:
Allowance for loan losses	$ 2,291	$ 2,173
Provision for unfunded commitments	63	0
Deferred compensation	519	528
Contributions	32	29
Non-accrual interest	34	43
Leases	227	282
Limited partnership investments	71	66
Alternative minimum tax credits	6	279
Tax credits from limited partnerships	0	7
Impairment loss on investment securities	6	0
Capital and net operating loss carry forwards	35	143
Total	3,284	3,550
Deferred Tax Liabilities:
Net unrealized investment securities gains	1,130	2,316
Loan fees and costs	215	180
Accumulated depreciation	814	828
Accretion	72	65
Mortgage servicing rights	49	44
Intangibles	312	328
Total	2,592	3,761
Net Deferred Tax Asset (Liability)	$ 692	$ (211)

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets, Valuation Allowance	$ 20,000	$ 20,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	$ 538,000	$ 459,000
Operating Loss Carry forwards Expiration Period	The low-income housing credit carryforward will expire between 2017 and 2022, and the alternative minimum tax credit carryforward has no expiration
State Net Operating Loss Carryforwards Offset Future State Taxable Income Expiration Term	2,035

EMPLOYEE BENEFIT PLANS AND DE83

EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION AGREEMENTS (Details Textual)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 297,000	$ 431,000	$ 558,000
Description of Defined Contribution Pension and Other Postretirement Plans	Under the savings feature, the Corporation makes safe harbor matching contributions of 100% of the first 3% of compensation an employee contributes to the Plan and 50% of the next 2% of compensation an employee contributes to the Plan.
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount	$ 281,000	280,000	206,000
Officer [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Deferred Compensation Arrangement With Individual, Number of Individuals	3
Deferred Compensation Arrangement with Individual, Maximum Contractual Term	20 years
Deferred Compensation Arrangement with Individual, Recorded Liability	$ 1,483,000	1,494,000
Deferred Compensation Arrangement with Individual, Compensation Expense	$ 82,000	$ 137,000	$ 154,000

COMMITMENTS AND CONTINGENCIES84

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2015USD ($)
Year Ending December 31
2,016	$ 132,000
2,017	120,000
Total minimum lease payments	252,000
Less amounts representing interest	20,000
Present value of net minimum lease payments	$ 232,000

COMMITMENTS AND CONTINGENCIES85

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Branch Banking Facilities, Land and Operation Centers [Member]
Commitments and Contingencies Disclosure [Line Items]
Operating Leases, Rent Expense, Net	$ 153,000	$ 122,000	$ 142,000
Operating Leases, Future Minimum Payments Due, Next Twelve Months	125,000
Operating Leases, Future Minimum Payments, Due in Two Years	132,000
Operating Leases, Future Minimum Payments, Due in Three Years	134,000
Operating Leases, Future Minimum Payments, Due in Four Years	110,000
Operating Leases, Future Minimum Payments, Due in Five Years	59,000
Operating Leases, Future Minimum Payments, Due Thereafter	2,589,000
Land and Bank Building [Member]
Commitments and Contingencies Disclosure [Line Items]
Operating Leases, Future Minimum Payments Due, Next Twelve Months	48,000
Operating Leases, Future Minimum Payments, Due in Two Years	$ 43,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Balance at January 1	$ 3,658	$ 3,389
Additions	2,096	2,700
Deductions	(2,076)	(2,431)
Balance at December 31	$ 3,678	$ 3,658

RELATED PARTY TRANSACTIONS (D87

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Related Party Deposit Liabilities	$ 10,415,000	$ 9,899,000
Management [Member]
Related Party Transaction [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 4,993,000	$ 2,921,000

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Total Capital (to Risk-Weighted Assets)
Actual	$ 87,605	$ 83,813
For capital adequacy purposes	50,951	44,490
To be well capitalized under prompt corrective action provisions	$ 63,689	$ 55,612
Total - Actual	13.76%	15.07%
For capital adequacy purposes	8.00%	8.00%
Total - To be well capitalized under prompt corrective action provisions	10.00%	10.00%
Tier 1 Capital (to Risk-Weighted Assets)
Actual	$ 80,682	$ 77,423
For capital adequacy purposes	38,213	22,245
To be well capitalized under prompt corrective action provisions	$ 50,951	$ 33,367
Tier 1 - Actual	12.67%	13.92%
Tier 1 - For capital adequacy purposes	6.00%	4.00%
Tier 1 - To be well capitalized under prompt corrective action provisions	8.00%	6.00%
Common Equity Tier 1 Capital (to Risk-Weighted Asserts)
Actual	$ 80,682
For capital adequacy purposes	28,660
Excess Tangible Capital	$ 41,398
Actual	12.67%
Total - For capital adequacy purposes	4.50%
Excess Tangible Capital Required for Capital Adequacy to Tangible Assets	6.50%
Tier 1 Capital (to Average Assets)
Actual	$ 80,682	$ 77,423
For capital adequacy purposes	38,123	35,897
To be well capitalized under prompt corrective action provisions	$ 47,665	$ 44,871
Actual	8.46%	8.63%
Tier 1 - For capital adequacy purposes	4.00%	4.00%
To be well capitalized under prompt corrective action provisions	5.00%	5.00%

REGULATORY MATTERS (Details Tex

REGULATORY MATTERS (Details Textual) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Jul. 02, 2013
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Amount Available for Dividend Distribution without Affecting Capital Adequacy Requirements	$ 6,071,000
Tier One Risk Based Capital to Risk Weighted Assets	12.67%	13.92%
Tier One Leverage Capital to Average Assets	8.46%	8.63%
Common Equity Tier 1 Conservation Buffer Percentage			2.50%
Loans And Advances From Bank To Corporation Percentage Limit Of Consolidated Net Assets	10.00%
Minimum [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier One Risk Based Capital to Risk Weighted Assets			4.50%
Excess Tier One Risk Based Capital to Risk Weighted Assets	6.00%
Tier One Leverage Capital to Average Assets	4.00%

FINANCIAL INSTRUMENTS WITH OF90

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND CONCENTRATIONS OF CREDIT RISK (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Commitments to extend credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Concentration Risk, Credit Risk, Financial Instrument, Off-Balance Sheet Risk	$ 79,771	$ 84,983
Financial standby letters of credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Concentration Risk, Credit Risk, Financial Instrument, Off-Balance Sheet Risk	475	471
Performance standby letters of credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Concentration Risk, Credit Risk, Financial Instrument, Off-Balance Sheet Risk	$ 4,692	$ 5,851

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share Purchase And Dividend Reinvestment Plan Shares Transferred And Held	50,796	46,047	39,074
Share Purchase And Dividend Reinvestment Plan Remaining Number Of Shares Authorized	115,054
Share Based Compensation Arrangement By Share Based Payment Award Minimum NumberOfQualifyingShares	25
Minimum [Member]
Share Purchase And Dividend Reinvestment Plan Quarterly Voluntary Investment	$ 100
Maximum [Member]
Share Purchase And Dividend Reinvestment Plan Quarterly Voluntary Investment	$ 2,500

STOCK COMPENSATION PLAN (Detail

STOCK COMPENSATION PLAN (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Options
Balance at January 1	4,323	4,823	11,904
Exercised	(2,037)	0	(2,034)
Forfeited/Expired	(786)	(500)	(5,047)
Balance at December 31	1,500	4,323	4,823
Exercisable at December 31	1,500	4,323	4,823
Weighted Average Exercise Price
Balance at January 1	$ 18.28	$ 18.12	$ 19.90
Exercised	18.37	0	21.11
Forfeited/Expired	20.95	16.75	21.11
Balance at December 31	16.75	18.28	18.12
Exercisable at December 31	$ 16.75	$ 18.28	$ 18.12

STOCK COMPENSATION PLAN (Deta93

STOCK COMPENSATION PLAN (Details 1) - Range One [Member]	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding | shares	1,500	[1]
Weighted Average Remaining Contractual Life	2 years
Weighted Average Exercise Price | $ / shares	$ 16.75
Number Exercisable | shares	1,500
Weighted Average Exercise Price | $ / shares	$ 16.75
[1]	As adjusted for stock dividend noted above.

STOCK COMPENSATION PLAN (Deta94

STOCK COMPENSATION PLAN (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	100,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	1,500	4,323	4,823
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 13,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	16,000	$ 0	$ 10,000
Proceeds from Stock Options Exercised	$ 37,000	$ 0	$ 43,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 16.75	$ 18.28	$ 18.12	$ 19.90

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	$ 385,241	$ 347,666
Mortgaged-backed Obligations of U.S. Government Corporations and Agencies: [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	112,474	112,714
Other Obligations of U.S. Government Corporations and Agencies [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	21,592	26,510
Obligations of state and political subdivisions [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	200,314	157,223
Corporate debt securities [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	47,833	37,786
Marketable equity securities [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	2,007	2,055
US Treasury Securities [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	1,021	11,378
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	2,007	2,055
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	383,234	345,611
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Mortgaged-backed Obligations of U.S. Government Corporations and Agencies: [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Mortgaged-backed Obligations of U.S. Government Corporations and Agencies: [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	112,474	112,714
Fair Value, Measurements, Recurring [Member] | Mortgaged-backed Obligations of U.S. Government Corporations and Agencies: [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Other Obligations of U.S. Government Corporations and Agencies [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Other Obligations of U.S. Government Corporations and Agencies [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	21,592	26,510
Fair Value, Measurements, Recurring [Member] | Other Obligations of U.S. Government Corporations and Agencies [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	200,314	157,223
Fair Value, Measurements, Recurring [Member] | Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	47,833	37,786
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Marketable equity securities [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	2,007	2,055
Fair Value, Measurements, Recurring [Member] | Marketable equity securities [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | Marketable equity securities [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	0	0
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	1,021	11,378
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure [Abstract]
Available-for-Sale Securities:	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Deta96

FAIR VALUE MEASUREMENTS (Details 1) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 2,296	$ 2,932
Other foreclosed assets held for resale		55
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Other foreclosed assets held for resale		0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Other foreclosed assets held for resale		0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,296	2,932
Other foreclosed assets held for resale		55
Commercial Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,665	2,073
Other foreclosed assets held for resale		55
Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Other foreclosed assets held for resale		0
Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Other foreclosed assets held for resale		0
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,665	2,073
Other foreclosed assets held for resale		55
Residential Real Estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	631	856
Residential Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Residential Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Residential Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	631	856
Commercial and Industrial [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	3
Commercial and Industrial [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial and Industrial [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0
Commercial and Industrial [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 0	$ 3

FAIR VALUE MEASUREMENTS (Deta97

FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Impaired loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Valuation Technique	[1],[2]	Appraisal of collateral	Appraisal of collateral
Unobservable Input	[3]	Appraisal adjustments	Appraisal adjustments
Impaired loans [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate		$ 2,296	$ 2,932
Impaired loans [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Comparability Adjustments		(63.00%)	(63.00%)
Impaired loans [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Comparability Adjustments		(10.00%)	0.00%
Impaired loans [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Comparability Adjustments		(29.00%)	(37.00%)
Foreclosed assets held for resale [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Valuation Technique	[1],[2]	Appraisal of collateral	Appraisal of collateral
Unobservable Input	[3]	Appraisal adjustments	Appraisal adjustments
Foreclosed assets held for resale [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Estimate		$ 0	$ 55
Foreclosed assets held for resale [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Comparability Adjustments		0.00%	(46.00%)
Foreclosed assets held for resale [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Comparability Adjustments		0.00%	(33.00%)
Foreclosed assets held for resale [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value Inputs, Comparability Adjustments		0.00%	(37.00%)
[1]	Fair value is generally determined through independent appraisals of the underlying collateral, as defined by Bank regulators.
[2]	Includes qualitative adjustments by management and estimated liquidation expenses.
[3]	Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The typical range of appraisal adjustments are presented as a percent of the appraisal value.

FAIR VALUE MEASUREMENTS (Deta98

FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
FINANCIAL ASSETS: (Carrying Amount)
Cash and due from banks	$ 7,474	$ 7,543
Interest-bearing deposits in other banks	1,534	424
Time deposits with other banks	1,482	1,482
Investment securities available-for-sale	385,241	347,666
Investment securities held-to-maturity	26	1,056
Restricted investment in bank stocks	5,742	5,308
Net loans	509,871	481,071
Mortgage servicing rights	493	481
Accrued interest receivable	4,086	3,313
FINANCIAL LIABILITIES: (Carrying Amount)
Deposits	720,598	661,562
Short-term borrowings	80,539	73,123
Long-term borrowings	70,232	65,339
Accrued interest payable	382	399
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Carrying Amount)	0	0
FINANCIAL ASSETS: (Fair Value)
Cash and due from banks	7,474	7,543
Interest-bearing deposits in other banks	1,534	424
Time deposits with other banks	1,482	1,482
Investment securities available-for-sale	385,241	347,666
Investment securities held-to-maturity	27	1,060
Restricted investment in bank stocks	5,742	5,308
Net loans	498,671	472,687
Mortgage servicing rights	493	481
Accrued interest receivable	4,086	3,313
FINANCIAL LIABILITIES: (Fair Value)
Deposits	720,341	661,819
Short-term borrowings	80,539	73,123
Long-term borrowings	71,302	66,747
Accrued interest payable	382	399
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Fair Value)	0	0
Fair Value, Inputs, Level 1 [Member]
FINANCIAL ASSETS: (Fair Value)
Cash and due from banks	7,474	7,543
Interest-bearing deposits in other banks	0	0
Time deposits with other banks	0	0
Investment securities available-for-sale	2,007	2,055
Investment securities held-to-maturity	0	0
Restricted investment in bank stocks	0	0
Net loans	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	0	0
FINANCIAL LIABILITIES: (Fair Value)
Deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Accrued interest payable	0	0
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Fair Value)	0	0
Fair Value, Inputs, Level 2 [Member]
FINANCIAL ASSETS: (Fair Value)
Cash and due from banks	0	0
Interest-bearing deposits in other banks	1,534	424
Time deposits with other banks	1,482	1,482
Investment securities available-for-sale	383,234	345,611
Investment securities held-to-maturity	27	1,060
Restricted investment in bank stocks	5,742	5,308
Net loans	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	4,086	3,313
FINANCIAL LIABILITIES: (Fair Value)
Deposits	720,341	661,819
Short-term borrowings	80,539	73,123
Long-term borrowings	71,302	66,747
Accrued interest payable	382	399
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Fair Value)	0	0
Fair Value, Inputs, Level 3 [Member]
FINANCIAL ASSETS: (Fair Value)
Cash and due from banks	0	0
Interest-bearing deposits in other banks	0	0
Time deposits with other banks	0	0
Investment securities available-for-sale	0	0
Investment securities held-to-maturity	0	0
Restricted investment in bank stocks	0	0
Net loans	498,671	472,687
Mortgage servicing rights	493	481
Accrued interest receivable	0	0
FINANCIAL LIABILITIES: (Fair Value)
Deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Accrued interest payable	0	0
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS (Fair Value)	$ 0	$ 0

FAIR VALUE MEASUREMENTS (Deta99

FAIR VALUE MEASUREMENTS (Details Textual)	Dec. 31, 2015USD ($)
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maximum impaired loan balance for which the bank completes a Certificate of Inspection	$ 250,000
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Minimum impaired loan balance that requires an appraisal to be obtained and reviewed annually for impaired loan valuation procedure	$ 250,000

PARENT COMPANY FINANCIAL INF100

PARENT COMPANY FINANCIAL INFORMATION (BALANCE SHEETS) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Investment in banking subsidiary	$ 1,553	$ 1,130
TOTAL ASSETS	983,489	912,353
LIABILITIES
TOTAL LIABILITIES	875,051	806,082
STOCKHOLDERS’ EQUITY
Common stock	11,707	11,605
Surplus	33,830	32,674
Retained earnings	66,622	63,485
Accumulated other comprehensive income	2,035	4,330
Treasury stock, at cost	(5,756)	(5,823)
TOTAL STOCKHOLDERS’ EQUITY	108,438	106,271	$ 96,351	$ 103,330
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	983,489	912,353
Parent Company [Member]
ASSETS
Cash	5,548	4,214	$ 2,408	$ 4,751
Investment in banking subsidiary	101,368	100,552
Investment securities available-for-sale	2,007	2,055
Prepaid expenses and other assets	752	49
TOTAL ASSETS	109,675	106,870
LIABILITIES
Advances from banking subsidiary	1,235	218
Accrued expenses and other liabilities	2	381
TOTAL LIABILITIES	1,237	599
STOCKHOLDERS’ EQUITY
Common stock	11,707	11,605
Surplus	33,830	32,674
Retained earnings	66,622	63,485
Accumulated other comprehensive income	2,035	4,330
Treasury stock, at cost	(5,756)	(5,823)
TOTAL STOCKHOLDERS’ EQUITY	108,438	106,271
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 109,675	$ 106,870

PARENT COMPANY FINANCIAL INF101

PARENT COMPANY FINANCIAL INFORMATION (STATEMENTS OF INCOME AND COMPREHENSIVE INCOME) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
INCOME
Net investment securities gains	$ 2,131	$ 2,756	$ 2,900
Income before income tax expense	11,143	12,828	12,498
INCOME TAX EXPENSE (BENEFIT)	1,971	2,617	2,225
NET INCOME	9,172	10,211	10,273
Parent Company [Member]
INCOME
Dividends from subsidiary bank	6,102	7,041	10,416
Net investment securities gains	0	187	0
Other income	79	76	64
TOTAL INCOME	6,181	7,304	10,480
OPERATING EXPENSES	133	136	162
Income before income tax expense	6,048	7,168	10,318
INCOME TAX EXPENSE (BENEFIT)	(33)	43	(61)
Income Before Equity in Undistributed Net Income of Subsidiary	6,081	7,125	10,379
EQUITY IN (EXCESS OF) UNDISTRIBUTED EARNINGS OF BANKING SUBSIDIARY	3,091	3,086	(106)
NET INCOME	$ 9,172	$ 10,211	$ 10,273

PARENT COMPANY FINANCIAL INF102

PARENT COMPANY FINANCIAL INFORMATION (STATEMENTS OF COMPREHENSIVE INCOME (LOSS)) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net Income		$ 9,172	$ 10,211	$ 10,273
Other comprehensive income (loss):
Unrealized net holding gains (losses) on available-for-sale investment securities arising during the period, net of income taxes of $(19), $13 and $226, respectively		(898)	6,191	(10,668)
Less reclassification adjustment for net gains included in net income, net of income taxes of $0, $(76) and $0, respectively	[1],[2]	(1,406)	(1,807)	(1,914)
Less reclassification adjustment for impairment charges on equity securities included in net income, net of income taxes of $5, $0 and $0, respectively	[2],[3]	9	0	0
Total other comprehensive income (loss)		(2,295)	4,384	(12,582)
Total Comprehensive Income (Loss)		6,877	14,595	(2,309)
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net Income		9,172	10,211	10,273
Other comprehensive income (loss):
Unrealized net holding gains (losses) on available-for-sale investment securities arising during the period, net of income taxes of $(19), $13 and $226, respectively		(29)	19	332
Less reclassification adjustment for net gains included in net income, net of income taxes of $0, $(76) and $0, respectively		0	(111)	0
Less reclassification adjustment for impairment charges on equity securities included in net income, net of income taxes of $5, $0 and $0, respectively		9	0	0
Equity in other comprehensive income (loss) of banking subsidiary		(2,275)	4,476	(12,914)
Total other comprehensive income (loss)		(2,295)	4,384	(12,582)
Total Comprehensive Income (Loss)		$ 6,877	$ 14,595	$ (2,309)
[1]	Gross amounts are included in net investment securities gains on the Consolidated Statements of Income in non-interest income.
[2]	Income tax amounts are included in income tax expense on the Consolidated Statements of Income.
[3]	Gross amounts are included in impairment charges on equity securities on the Consolidated Statements of Income in non-interest income.

PARENT COMPANY FINANCIAL INF103

PARENT COMPANY FINANCIAL INFORMATION (STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net income	$ 9,172	$ 10,211	$ 10,273
Adjustments to reconcile net income to net cash provided by operating activities:
Gains on sales of investment securities	(2,131)	$ (2,756)	$ (2,900)
Impairment charges on equity securities	14
Deferred income tax expense	283	$ 46	$ (260)
NET CASH PROVIDED BY OPERATING ACTIVITIES	10,285	7,076	12,959
INVESTING ACTIVITIES
NET CASH PROVIDED BY INVESTING ACTIVITIES	(75,843)	(26,325)	(88,878)
FINANCING ACTIVITIES
Proceeds from issuance of common stock	1,252	1,121	981
Proceeds from issuance of treasury stock	37	0	43
Dividends paid	(6,035)	(5,815)	(5,716)
NET CASH USED IN FINANCING ACTIVITIES	66,599	(3,407)	85,622
Parent Company [Member]
OPERATING ACTIVITIES
Net income	9,172	10,211	10,273
Adjustments to reconcile net income to net cash provided by operating activities:
Gains on sales of investment securities	0	(187)	0
Impairment charges on equity securities	14	0	0
Deferred income tax expense	63	41	0
(Equity in) excess of undistributed earnings of banking subsidiary	(3,091)	(3,086)	106
(Increase) decrease in prepaid/accrued expenses and other assets/liabilities	(1,095)	327	325
Increase (decrease) in advances from banking subsidiary	1,017	(1,318)	(8,355)
NET CASH PROVIDED BY OPERATING ACTIVITIES	6,080	5,988	2,349
INVESTING ACTIVITIES
Proceeds from sales of investment securities available-for-sale	0	512	0
NET CASH PROVIDED BY INVESTING ACTIVITIES	0	512	0
FINANCING ACTIVITIES
Proceeds from issuance of common stock	1,252	1,121	981
Proceeds from issuance of treasury stock	37	0	43
Dividends paid	(6,035)	(5,815)	(5,716)
NET CASH USED IN FINANCING ACTIVITIES	(4,746)	(4,694)	(4,692)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,334	1,806	(2,343)
CASH AND CASH EQUIVALENTS, BEGINNING	4,214	2,408	4,751
CASH AND CASH EQUIVALENTS, ENDING	$ 5,548	$ 4,214	$ 2,408

PARENT COMPANY FINANCIAL INF104

PARENT COMPANY FINANCIAL INFORMATION (STATEMENTS OF COMPREHENSIVE INCOME (LOSS)) (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ (466)	$ 3,192	$ (5,439)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	(725)	(949)	(986)
Other Comprehensive Income Loss, Reclassification Adjustment For Impairment Charge From AOCI for Sale of Securities, Tax	5	0	0
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	(19)	13	226
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	0	(76)	0
Other Comprehensive Income Loss, Reclassification Adjustment For Impairment Charge From AOCI for Sale of Securities, Tax	$ 5	$ 0	$ 0