Citizens Financial Services (CZFS) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 02, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	CITIZENS FINANCIAL SERVICES INC
Entity Central Index Key	739,421
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 Common Stock, Shares Outstanding		3,320,366
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017

CONSOLIDATED BALANCE SHEET (UNA

CONSOLIDATED BALANCE SHEET (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Cash and due from banks:
Noninterest-bearing	$ 13,587	$ 16,854
Interest-bearing	1,210	900
Total cash and cash equivalents	14,797	17,754
Interest bearing time deposits with other banks	6,708	6,955
Available-for-sale securities	281,773	314,017
Loans held for sale	1,581	1,827
Loans (net of allowance for loan losses: 2017, $9,405 and 2016, $8,886)	835,902	790,725
Premises and equipment	16,949	17,030
Accrued interest receivable	3,618	4,089
Goodwill	21,089	21,089
Bank owned life insurance	26,389	26,223
Other intangibles	2,012	2,096
Receivable for settlement of security sales	1,297	7,759
Other assets	12,409	13,454
TOTAL ASSETS	1,224,524	1,223,018
Deposits:
Noninterest-bearing	157,426	147,425
Interest-bearing	880,183	858,078
Total deposits	1,037,609	1,005,503
Borrowed funds	46,836	79,662
Accrued interest payable	612	720
Other liabilities	14,511	13,865
TOTAL LIABILITIES	1,099,568	1,099,750
STOCKHOLDERS' EQUITY:
Preferred Stock $1.00 par value; authorized 3,000,000 shares March 31, 2017 and December 31, 2016; none issued in 2017 or 2016	0	0
Common stock $1.00 par value; authorized 15,000,000 shares; issued 3,704,375 at March 31, 2017 and December 31, 2016	3,704	3,704
Additional paid-in capital	42,256	42,250
Retained earnings	93,172	91,278
Accumulated other comprehensive loss	(1,421)	(1,392)
Treasury stock, at cost: 388,190 shares at March 31, 2017 and 384,671 shares at December 31, 2016	(12,755)	(12,572)
TOTAL STOCKHOLDERS' EQUITY	124,956	123,268
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,224,524	$ 1,223,018

CONSOLIDATED BALANCE SHEET (UN3

CONSOLIDATED BALANCE SHEET (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS:
Loans, allowance for loan losses	$ 9,405	$ 8,886
STOCKHOLDERS' EQUITY:
Preferred Stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, authorized (in shares)	3,000,000	3,000,000
Preferred Stock, issued (in shares)	0	0
Common Stock, par value (in dollars per share)	$ 1	$ 1
Common Stock, authorized (in shares)	15,000,000	15,000,000
Common Stock, issued (in shares)	3,704,375	3,704,375
Treasury stock, shares (in shares)	388,190	384,671

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
INTEREST INCOME:
Interest and fees on loans	$ 9,717	$ 8,596
Interest-bearing deposits with banks	35	71
Investment securities:
Taxable	804	944
Nontaxable	668	771
Dividends	76	80
TOTAL INTEREST INCOME	11,300	10,462
INTEREST EXPENSE:
Deposits	1,045	1,074
Borrowed funds	258	183
TOTAL INTEREST EXPENSE	1,303	1,257
NET INTEREST INCOME	9,997	9,205
Provision for loan losses	615	135
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	9,382	9,070
NON-INTEREST INCOME:
Service charges	1,058	1,102
Trust	221	196
Brokerage and insurance	191	209
Gains on loans sold	101	46
Investment securities gains, net	172	27
Earnings on bank owned life insurance	166	170
Other	126	166
TOTAL NON-INTEREST INCOME	2,035	1,916
NON-INTEREST EXPENSES:
Salaries and employee benefits	4,319	3,882
Occupancy	527	445
Furniture and equipment	139	157
Professional fees	310	287
FDIC insurance	105	157
Pennsylvania shares tax	281	150
Amortization of intangibles	76	82
ORE expenses	90	92
Other	1,344	1,660
TOTAL NON-INTEREST EXPENSES	7,191	6,912
Income before provision for income taxes	4,226	4,074
Provision for income taxes	923	791
NET INCOME	$ 3,303	$ 3,283
PER COMMON SHARE DATA:
Net Income - Basic (in dollars per share)	$ 1	$ 0.98
Net Income - Diluted (in dollars per share)	1	0.98
Cash Dividends Paid (in dollars per share)	$ 0.425	$ 0.411
Number of shares used in computation - basic (in shares)	3,313,616	3,356,573
Number of shares used in computation - diluted (in shares)	3,313,636	3,356,573

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$ 3,303	$ 3,283
Other comprehensive income (loss):
Change in unrealized gains on available for sale securities	70	1,694
Income tax effect	(24)	(577)
Change in unrecognized pension cost	60	61
Income tax effect	(21)	(21)
Less: Reclassification adjustment for investment security gains included in net income	(172)	(27)
Income tax effect	58	9
Other comprehensive income (loss), net of tax	(29)	1,139
Comprehensive income	$ 3,274	$ 4,422

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,303	$ 3,283
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	615	135
Depreciation and amortization	108	76
Amortization and accretion of investment securities	382	567
Deferred income taxes	(174)	(115)
Investment securities gains, net	(172)	(27)
Earnings on bank owned life insurance	(166)	(170)
Originations of loans held for sale	(4,727)	(3,913)
Proceeds from sales of loans held for sale	5,075	3,005
Realized gains on loans sold	(101)	(46)
Decrease in accrued interest receivable	471	115
Decrease in accrued interest payable	(108)	(74)
Other, net	1,801	(467)
Net cash provided by operating activities	6,307	2,369
Available-for-sale securities:
Proceeds from sales	18,766	5,020
Proceeds from maturity and principal repayments	29,858	9,757
Purchase of securities	(11,039)	(25,840)
Purchase of interest bearing time deposits with other banks	(746)	0
Proceeds from redemption of regulatory stock	2,617	112
Purchase of regulatory stock	(1,288)	0
Net increase in loans	(45,880)	(4,454)
Purchase of premises and equipment	(113)	(166)
Proceeds from sale of interest bearing time deposits with other banks	750	0
Proceeds from sale of foreclosed assets held for sale	125	289
Net cash used in investing activities	(6,950)	(15,282)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits	32,106	29,780
Proceeds from long-term borrowings	2	2
Net increase in short-term borrowed funds	(32,828)	(1,637)
Purchase of treasury and restricted stock	(396)	(860)
Dividends paid	(1,198)	(1,377)
Net cash (used) provided by financing activities	(2,314)	25,908
Net (decrease) increase in cash and cash equivalents	(2,957)	12,995
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	17,754	24,384
CASH AND CASH EQUIVALENTS AT END OF PERIOD	14,797	37,379
Supplemental Disclosures of Cash Flow Information:
Interest paid	1,411	1,331
Income taxes paid	0	450
Loans transferred to foreclosed property	307	64
Investments and time deposits sold and not settled	$ 1,297	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Basis of Presentation [Abstract]
Basis of Presentation	Note 1 - Basis of Presentation Citizens Financial Services, Inc. (individually and collectively with its direct and indirect subsidiaries, the "Company") is a Pennsylvania corporation and the holding company of its wholly owned subsidiary, First Citizens Community Bank (the "Bank"), and of the Bank's wholly owned subsidiary, First Citizens Insurance Agency, Inc. ("First Citizens Insurance"). The accompanying consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission ("SEC") and in conformity with U.S. generally accepted accounting principles. Because this report is based on an interim period, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. Certain of the prior year amounts have been reclassified to conform with the current year presentation. Such reclassifications had no effect on net income or stockholders' equity. All material inter‑company balances and transactions have been eliminated in consolidation. In the opinion of management of the Company, the accompanying interim financial statements at March 31, 2017 and for the periods ended March 31, 2017 and 2016 include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial condition and the results of operations for the periods. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. The financial performance reported for the Company for the three month period ended March 31, 2017 is not necessarily indicative of the results to be expected for the full year. This information should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2017
Earnings per Share [Abstract]
Earnings per Share	Note 2 - Earnings per Share The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company. Three months ended March 31, 2017 2016 Net income applicable to common stock $ 3,303,000 $ 3,283,000 Basic earnings per share computation Weighted average common shares outstanding 3,313,616 3,356,573 Earnings per share - basic $ 1.00 $ 0.98 Diluted earnings per share computation Weighted average common shares outstanding for basic earnings per share 3,313,616 3,356,573 Add: Dilutive effects of restricted stock 20 - Weighted average common shares outstanding for dilutive earnings per share 3,313,636 3,356,573 Earnings per share - diluted $ 1.00 $ 0.98 For the three months ended March 31, 2017 and 2016, there were 2,087 and 5,325 shares, respectively, related to the restricted stock plan that were excluded from the diluted earnings per share calculations since they were anti-dilutive. These anti-dilutive shares had per share prices ranging from $49.87-$53.15 for the three month period ended March 31, 2017 and per share prices ranging from $46.69-$53.15 for the three month period ended March 31, 2016.

Income Tax Expense

Income Tax Expense	3 Months Ended
	Mar. 31, 2017
Income Tax Expense [Abstract]
Income Tax Expense	Note 3 - Income Tax Expense Income tax expense is less than the amount calculated using the statutory tax rate, primarily as a result of tax-exempt income earned from state and municipal securities and loans and investments in affordable housing tax credits. Investments in Qualified Affordable Housing Projects As of March 31, 2017 and December 31, 2016, the Company was invested in four partnerships that provide affordable housing. The balance of the investments, which is included within other assets in the Consolidated Balance Sheet, was $660,000 and $700,000 as of March 31, 2017 and December 31, 2016, respectively. Investments purchased prior to January 1, 2015, are accounted for utilizing the effective yield method. As of March 31, 2017, the Company had $811,000 of tax credits remaining that will be recognized over 5.75 years. Tax credits of $35,000 and $50,000 were recognized as a reduction of tax expense during the three months ended March 31, 2017 and 2016, respectively. Amortization of the investment included in other expenses on the Consolidated Statement of Income was $40,000 and $65,000 during the three months ended March 31, 2017 and 2016, respectively.

Investments

Investments	3 Months Ended
	Mar. 31, 2017
Investments [Abstract]
Investments	Note 4 – Investments The amortized cost, gross unrealized gains and losses, and fair value of investment securities at March 31, 2017 and December 31, 2016 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair March 31, 2017 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 147,624 $ 297 $ (263 ) $ 147,658 Obligations of state and political subdivisions 87,082 1,500 (339 ) 88,243 Corporate obligations 3,000 95 - 3,095 Mortgage-backed securities in government sponsored entities 41,292 82 (256 ) 41,118 Equity securities in financial institutions 899 760 - 1,659 Total available-for-sale securities $ 279,897 $ 2,734 $ (858 ) $ 281,773 December 31, 2016 Available-for-sale securities: U.S. agency securities $ 170,276 $ 407 $ (269 ) $ 170,414 U.S. treasury securities 2,999 1 - 3,000 Obligations of state and political subdivisions 95,956 1,463 (493 ) 96,926 Corporate obligations 3,000 50 - 3,050 Mortgage-backed securities in government sponsored entities 37,987 88 (347 ) 37,728 Equity securities in financial institutions 1,821 1,078 - 2,899 Total available-for-sale securities $ 312,039 $ 3,087 $ (1,109 ) $ 314,017 The following table shows the Company's gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at March 31, 2017 and December 31, 2016 (in thousands). As of March 31, 2017, the Company owned 80 securities whose fair value was less than their cost basis. Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2017 Value Losses Value Losses Value Losses U.S. agency securities $ 61,938 $ (263 ) $ - $ - $ 61,938 $ (263 ) Obligations of state and political subdivisions 18,733 (279 ) 2,117 (60 ) 20,850 (339 ) Mortgage-backed securities in government sponsored entities 23,028 (221 ) 3,159 (35 ) 26,187 (256 ) Total securities $ 103,699 $ (763 ) $ 5,276 $ (95 ) $ 108,975 $ (858 ) December 31, 2016 U.S. agency securities $ 50,947 $ (269 ) $ - $ - $ 50,947 $ (269 ) Obligations of states and political subdivisions 28,398 (472 ) 767 (21 ) 29,165 (493 ) Mortgage-backed securities in government sponsored entities 26,717 (330 ) 753 (17 ) 27,470 (347 ) Total securities $ 106,062 $ (1,071 ) $ 1,520 $ (38 ) $ 107,582 $ (1,109 ) As of March 31, 2017 and December 31, 2016, the Company's investment securities portfolio contained unrealized losses on agency securities issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, obligations of states and political subdivisions and mortgage backed securities issued by government sponsored entities. For fixed maturity investments For equity securities where the fair value has been significantly below cost for one year, the Company's policy is to recognize an impairment loss unless sufficient evidence is available that the decline is not other than temporary and a recovery period can be predicted. The Company has concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary and is the result of interest rate changes, sector credit rating changes, or issuer-specific rating changes that are not expected to result in the non-collection of principal and interest during the period. Proceeds from sales of securities available-for-sale for the three months ended March 31, 2017 and 2016 were $18,766,000 and $5,020,000, respectively. The gross gains and losses were as follows (in thousands): Three Months Ended March 31, 2017 2016 Gross gains $ 172 $ 27 Gross losses - - Net gains $ 172 $ 27 Investment securities with an approximate carrying value of $206.5 million and $206.3 million at March 31, 2017 and December 31, 2016, respectively, were pledged to secure public funds and certain other deposits. 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. The amortized cost and fair value of debt securities (excludes equity securities) at March 31, 2017, by contractual maturity, are shown below (in thousands): Amortized Cost Fair Value Available-for-sale debt securities: Due in one year or less $ 36,081 $ 36,288 Due after one year through five years 141,531 142,341 Due after five years through ten years 38,172 38,283 Due after ten years 63,214 63,202 Total $ 278,998 $ 280,114

Loans

Loans	3 Months Ended
	Mar. 31, 2017
Loans [Abstract]
Loans	Note 5 – Loans The Company grants loans primarily to customers throughout north central, central and south central Pennsylvania and the southern tier of New York. Although the Company had a diversified loan portfolio at March 31, 2017 and December 31, 2016, a substantial portion of its debtors' ability to honor their contracts is dependent on the economic conditions within these regions. The following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for loan losses as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 203,817 $ 945 $ 35 $ 202,837 Commercial 267,097 6,347 1,965 258,785 Agricultural 156,299 3,476 737 152,086 Construction 26,118 - - 26,118 Consumer 10,508 2 1 10,505 Other commercial loans 59,800 5,281 863 53,656 Other agricultural loans 24,227 1,612 - 22,615 State and political subdivision loans 97,441 - - 97,441 Total 845,307 17,663 3,601 824,043 Allowance for loan losses 9,405 404 - 9,001 Net loans $ 835,902 $ 17,259 $ 3,601 $ 815,042 December 31, 2016 Real estate loans: Residential $ 207,423 $ 957 $ 35 $ 206,431 Commercial 252,577 5,742 1,969 244,866 Agricultural 123,624 3,346 738 119,540 Construction 25,441 - - 25,441 Consumer 11,005 - 4 11,001 Other commercial loans 58,639 5,994 621 52,024 Other agricultural loans 23,388 1,654 - 21,734 State and political subdivision loans 97,514 - - 97,514 Total 799,611 17,693 3,367 778,551 Allowance for loan losses 8,886 487 - 8,399 Net loans $ 790,725 $ 17,206 $ 3,367 $ 770,152 Purchased loans acquired in The First National Bank of Fredericksburg (FNB) acquisition were recorded at fair value on their purchase date without a carryover of the related allowance for loan losses. Upon acquisition, the Company evaluated whether an acquired loan was within the scope of ASC 310-30, Receivables-Loans and Debt Securities Acquired with Deteriorated Credit Quality. Purchased credit-impaired ("PCI") loans are loans that have evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all contractually required principal and interest payments. Based upon management's review, there were no material increases or decreases in the expected cash flows of these loans between December 11, 2015 (the "acquisition date") and March 31, 2017. The fair value of PCI loans, on the acquisition date, was determined, primarily based on the fair value of the loans' collateral. The carrying value of PCI loans was $3,601,000 and $3,367,000 at March 31, 2017 and December 31, 2016, respectively. The carrying value of the PCI loans was determined by projected discounted contractual cash flows. Changes in the accretable yield for PCI loans were as follows for the three months ended March 31, 2017 and 2016, respectively (in thousands): March 31, 2017 March 31, 2016 Balance at beginning of period $ 389 $ 637 Accretion (114 ) (86 ) Balance at end of period $ 275 $ 551 The following table presents additional information regarding loans acquired with specific evidence of deterioration in credit quality under ASC 310-30 (in thousands): March 31, 2017 December 31, 2016 Outstanding balance $ 6,688 $ 6,487 Carrying amount 3,601 3,367 The segments of the Company's loan portfolio are disaggregated into classes to a level that allows management to monitor risk and performance. Residential real estate mortgages consist primarily of 15 to 30 year first mortgages on residential real estate, while residential real estate home equity loans are consumer purpose installment loans or lines of credit with terms of 15 years or less secured by a mortgage which is often a second lien on residential real estate. Commercial real estate loans are business purpose loans secured by a mortgage on commercial real estate. Agricultural real estate loans are loans secured by a mortgage on real estate used in agriculture production. Construction real estate loans are loans secured by residential or commercial real estate used during the construction phase of residential and commercial projects. Consumer loans are typically unsecured or primarily secured by assets other than real estate and overdraft lines of credit are typically secured by customer deposit accounts. Other commercial loans are loans for commercial purposes primarily secured by non-real estate collateral. Other agricultural loans are loans for agricultural purposes primarily secured by non-real estate collateral. State and political subdivision loans are loans to state and local municipalities for capital and operating expenses or tax free loans used to finance commercial development. Management considers other commercial loans, other agricultural loans, state and political subdivision loans, commercial real estate loans and agricultural real estate loans which are 90 days or more past due to be impaired. Management will also consider a loan impaired based on other factors it becomes aware of, including the customer's results of operations and cash flows or if the loan is modified in a troubled debt restructuring. In addition, c ertain residential mortgages, home equity and consumer loans that are cross collateralized with commercial relationships that are determined to be impaired may also be classified as impaired. The following table includes the recorded investment and unpaid principal balances for impaired financing receivables by class, excluding PCI loans, with the associated allowance amount, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related March 31, 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 949 $ 568 $ 322 $ 890 $ 28 Home Equity 55 - 55 55 10 Commercial 8,628 5,937 410 6,347 47 Agricultural 3,487 2,146 1,330 3,476 103 Construction - - - - - Consumer 2 - 2 2 2 Other commercial loans 5,797 4,806 475 5,281 195 Other agricultural loans 1,612 1,593 19 1,612 19 State and political subdivision loans - - - - - Total $ 20,530 $ 15,050 $ 2,613 $ 17,663 $ 404 December 31, 2016 Real estate loans: Mortgages $ 953 $ 570 $ 330 $ 900 $ 22 Home Equity 57 - 57 57 10 Commercial 7,958 5,697 45 5,742 45 Agricultural 3,347 2,000 1,347 3,347 54 Construction - - - - - Consumer - - - - - Other commercial loans 6,159 5,135 859 5,994 326 Other agricultural loans 1,653 1,629 24 1,653 30 State and political subdivision loans - - - - - Total $ 20,127 $ 15,031 $ 2,662 $ 17,693 $ 487 The following tables includes the average balance of impaired financing receivables by class and the income recognized on these receivables for the three month periods ended March 31, 2017 and 2016(in thousands): For the Three Months Ended March 31, 2017 March 31, 2016 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 894 $ 3 $ - $ 391 $ 4 $ - Home Equity 56 1 - 60 1 - Commercial 5,793 24 3 6,179 26 - Agricultural 3,382 31 - 165 2 - Construction - - - - - - Consumer 1 - - - - - Other commercial loans 5,597 40 10 5,952 66 1 Other agricultural loans 1,627 23 - 105 1 - State and political subdivision loans - - - - - - Total $ 17,350 $ 122 $ 13 $ 12,852 $ 100 $ 1 Credit Quality Information For commercial real estate, agricultural real estate, construction, other commercial, other agricultural and state and political subdivision loans, management uses a nine grade internal risk rating system to monitor credit quality. The first five categories are considered not criticized and are aggregated as "Pass" rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The definitions of each rating are defined below: · Pass (Grades 1-5) – These loans are to customers with credit quality ranging from an acceptable to very high quality and are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. · Special Mention (Grade 6) – This loan grade is in accordance with regulatory guidance and includes loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. · Substandard (Grade 7) – This loan grade is in accordance with regulatory guidance and includes loans that have a well-defined weakness based on objective evidence and be characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. · Doubtful (Grade 8) – This loan grade is in accordance with regulatory guidance and includes loans that have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. · Loss (Grade 9) – This loan grade is in accordance with regulatory guidance and includes loans that are considered uncollectible, or of such value that continuance as an asset is not warranted. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay the loan as agreed, the Company's loan rating process includes several layers of internal and external oversight. The Company's loan officers are responsible for the timely and accurate risk rating of the loans in each of their portfolios at origination and on an ongoing basis under the supervision of management. All commercial and agricultural loans are reviewed annually to ensure the appropriateness of the loan grade. In addition, the Company engages an external consultant on at least an annual basis to 1) review a minimum of 55% of the dollar volume of the commercial loan portfolio on an annual basis, 2) review new loans originated for over $1.0 million in the last year, 3) review a majority of borrowers with commitments greater than or equal to $1.0 million, 4) review selected loan relationships over $750,000 which are over 30 days past due or classified Special Mention, Substandard, Doubtful, or Loss, and 5) such other loans which management or the consultant deems appropriate. The following tables represent credit exposures by internally assigned grades as of March 31, 2017 and December 31, 2016 (in thousands) March 31, 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 240,229 $ 14,732 $ 12,136 $ - $ - $ 267,097 Agricultural 143,715 7,835 4,749 - - 156,299 Construction 26,118 - - - - 26,118 Other commercial loans 53,657 1,560 4,498 85 - 59,800 Other agricultural loans 21,218 1,300 1,709 - - 24,227 State and political subdivision loans 83,548 13,095 798 - - 97,441 Total $ 568,485 $ 38,522 $ 23,890 $ 85 $ - $ 630,982 December 31, 2016 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 225,185 $ 14,045 $ 13,347 $ - $ - $ 252,577 Agricultural 110,785 8,231 4,608 - - 123,624 Construction 25,441 - - - - 25,441 Other commercial loans 51,396 2,049 5,105 89 - 58,639 Other agricultural loans 20,178 1,733 1,477 - - 23,388 State and political subdivision loans 83,620 13,066 828 - - 97,514 Total $ 516,605 $ 39,124 $ 25,365 $ 89 $ - $ 581,183 For residential real estate mortgages, home equity and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual, described in more detail below, and all loans past due 90 or more days and still accruing. The following table presents the recorded investment in those loan classes based on payment activity as of March 31, 2017 and December 31, 2016 ( in thousands) March 31, 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 145,446 $ 1,539 $ 35 $ 147,020 Home Equity 56,566 231 - 56,797 Consumer 10,395 112 1 10,508 Total $ 212,407 $ 1,882 $ 36 $ 214,325 December 31, 2016 Real estate loans: Mortgages $ 147,047 $ 1,648 $ 35 $ 148,730 Home Equity 58,438 255 - $ 58,693 Consumer 10,892 109 4 $ 11,005 Total $ 216,377 $ 2,012 $ 39 $ 218,428 Aging Analysis of Past Due Financing Receivables Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table includes an aging analysis of the recorded investment of past due financing receivables as of March 31, 2017 and December 31, 2016 (in thousands): Total 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Financing Greater and March 31, 2017 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 315 $ 49 $ 988 $ 1,352 $ 145,633 $ 35 $ 147,020 $ 230 Home Equity 156 85 188 429 56,368 - 56,797 146 Commercial 301 645 3,973 4,919 260,213 1,965 267,097 58 Agricultural 22 - 1,338 1,360 154,202 737 156,299 334 Construction - - - - 26,118 - 26,118 - Consumer 90 35 110 235 10,272 1 10,508 22 Other commercial loans 161 2 2,597 2,760 56,177 863 59,800 - Other agricultural loans 774 - 225 999 23,228 - 24,227 225 State and political subdivision loans - - - - 97,441 - 97,441 - Total $ 1,819 $ 816 $ 9,419 $ 12,054 $ 829,652 $ 3,601 $ 845,307 $ 1,015 Loans considered non-accrual $ 77 $ 10 $ 8,404 $ 8,491 $ 1,991 $ - $ 10,482 Loans still accruing 1,742 806 1,015 3,563 827,661 3,601 834,825 Total $ 1,819 $ 816 $ 9,419 $ 12,054 $ 829,652 $ 3,601 $ 845,307 December 31, 2016 Real estate loans: Mortgages $ 630 $ 36 $ 1,109 $ 1,775 $ 146,920 $ 35 $ 148,730 $ 173 Home Equity 384 49 209 642 58,051 - 58,693 160 Commercial 1,757 58 4,302 6,117 244,491 1,969 252,577 - Agricultural - - 1,145 1,145 121,741 738 123,624 - Construction - - - - 25,441 - 25,441 - Consumer 115 40 83 238 10,763 4 11,005 67 Other commercial loans 95 35 4,004 4,134 53,884 621 58,639 - Other agricultural loans 43 34 5 82 23,306 - 23,388 5 State and political subdivision loans - - - - 97,514 - 97,514 - Total $ 3,024 $ 252 $ 10,857 $ 14,133 $ 782,111 $ 3,367 $ 799,611 $ 405 Loans considered non-accrual $ 172 $ 105 $ 10,452 $ 10,729 $ 725 $ - $ 11,454 Loans still accruing 2,852 147 405 3,404 781,386 3,367 788,157 Total $ 3,024 $ 252 $ 10,857 $ 14,133 $ 782,111 $ 3,367 $ 799,611 Nonaccrual Loans Loans are considered for non-accrual status upon reaching 90 days delinquency, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans or if full payment of principal and interest is not expected. Additionally, if management is made aware of other information including bankruptcy, repossession, death, or legal proceedings, the loan may be placed on non-accrual status. If a loan is 90 days or more past due and is well secured and in the process of collection, it may still be considered accruing. The following table reflects the financing receivables, excluding PCI loans, on non-accrual status as of March 31, 2017 and December 31, 2016, respectively. The balances are presented by class of financing receivable (in thousands): March 31, 2017 December 31, 2016 Real estate loans: Mortgages $ 1,309 $ 1,475 Home Equity 85 95 Commercial 4,448 4,445 Agricultural 1,322 1,340 Consumer 90 42 Other commercial loans 3,228 4,057 $ 10,482 $ 11,454 Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a Troubled Debt Restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to structure more affordable terms before their loan reaches nonaccrual status. These restructured terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of interest or principal, or both, management measures any impairment on the restructuring by calculating the present value of the revised loan terms and comparing this balance to the Company's investment in the loan prior to the restructuring. As these loans are individually evaluated, they are excluded from pooled portfolios when calculating the allowance for loan and lease losses and a separate allocation within the allowance for loan and lease losses is provided. Management continually evaluates loans that are considered TDRs, including payment history under the modified loan terms, the borrower's ability to continue to repay the loan based on continued evaluation of their operating results and cash flows from operations. Based on this evaluation management would no longer consider a loan to be a TDR when the relevant facts support such a conclusion. As of March 31, 2017 and December 31, 2016, included within the allowance for loan losses are reserves of $27,000 and $29,000 respectively, that are associated with loans modified as TDRs. Loan modifications that are considered TDRs completed during the three months ended March 31, 2017 were as follows (dollars in thousands): For the Three Months Ended March 31, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 2 $ - $ 703 $ - $ 703 Total - 2 $ - $ 703 $ - $ 703 There were no loan modifications that were considered TDRs during the three months ended March 31, 2016. Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new origination loans, so modified loans present a higher risk of loss than do new origination loans. There were no loans that were modified as TDRs during each 12-month period prior to the current reporting periods, which began January 1, 2017 and 2016 (three month periods) that subsequently defaulted during these reporting periods. Allowance for Loan Losses The following table segregates the allowance for loan losses (ALLL) into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2017 and December 31, 2016, respectively (in thousands): March 31, 2017 December 31, 2016 Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total Real estate loans: Residential $ 38 $ 1,004 $ 1,042 $ 32 $ 1,032 $ 1,064 Commercial 47 3,618 3,665 45 3,544 3,589 Agricultural 103 1,849 1,952 54 1,440 1,494 Construction - 46 46 - 47 47 Consumer 2 121 123 - 122 122 Other commercial loans 195 1,020 1,215 326 1,001 1,327 Other agricultural loans 19 287 306 30 282 312 State and political subdivision loans - 824 824 - 833 833 Unallocated - 232 232 - 98 98 Total $ 404 $ 9,001 $ 9,405 $ 487 $ 8,399 $ 8,886 The following tables roll forward the balance of the ALLL by portfolio segment for the three month periods ended March 31, 2017 and 2016, respectively (in thousands): For the three months ended March 31, 2017 Balance at December 31, 2016 Charge-offs Recoveries Provision Balance at March 31, 2017 Real estate loans: Residential $ 1,064 $ (45 ) $ - $ 23 $ 1,042 Commercial 3,589 (41 ) 4 113 3,665 Agricultural 1,494 458 1,952 Construction 47 - - (1 ) 46 Consumer 122 (28 ) 10 19 123 Other commercial loans 1,327 - 9 (121 ) 1,215 Other agricultural loans 312 (5 ) (1 ) 306 State and political subdivision loans 833 - - (9 ) 824 Unallocated 98 - - 134 232 Total $ 8,886 $ (119 ) $ 23 $ 615 $ 9,405 For the three months ended March 31, 2016 Balance at December 31, 2015 Charge-offs Recoveries Provision Balance at March 31, 2016 Real estate loans: Residential $ 905 $ - $ - $ 61 $ 966 Commercial 3,376 - 4 153 3,533 Agricultural 409 (4 ) 405 Construction 24 - - (10 ) 14 Consumer 102 (15 ) 39 (30 ) 96 Other commercial loans 1,183 - 6 33 1,222 Other agricultural loans 122 3 125 State and political - subdivision loans 593 - - 73 666 Unallocated 392 - - (144 ) 248 Total $ 7,106 $ (15 ) $ 49 $ 135 $ 7,275 The Company allocates the ALLL based on the factors described below, which conform to the Company's loan classification policy and credit quality measurements. In reviewing risk within the Company's loan portfolio, management has determined there to be several different risk categories within the loan portfolio. The ALLL consists of amounts applicable to: (i) residential real estate loans; (ii) residential real estate home equity loans; (iii) commercial real estate loans; (iv) agricultural real estate loans; (v) real estate construction loans; (vi) other commercial and agricultural loans; (vii) consumer loans; (viii) other agricultural loans and (ix) state and political subdivision loans. Factors considered in this process include general loan terms, collateral, and availability of historical data to support the analysis. Historical loss percentages are calculated and used as the basis for calculating allowance allocations. Certain qualitative factors are evaluated to determine additional inherent risks in the loan portfolio, which are not necessarily reflected in the historical loss percentages. These factors are then added to the historical allocation percentage to get the adjusted factor to be applied to non-classified loans. The following qualitative factors are analyzed: · Level of and trends in delinquencies and impaired/classified loans § Change in volume and severity of past due loans § Volume of non-accrual loans § Volume and severity of classified, adversely or graded loans; · Level of and trends in charge-offs and recoveries; · Trends in volume, terms and nature of the loan portfolio; · Effects of any changes in risk selection and underwriting standards and any other changes in lending and recovery policies, procedures and practices; · Changes in the quality of the Company's loan review system; · Experience, ability and depth of lending management and other relevant staff; · National, state, regional and local economic trends and business conditions § General economic conditions § Unemployment rates § Inflation rate/ Consumer Price Index § Changes in values of underlying collateral for collateral-dependent loans; · Industry conditions including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses; · Existence and effect of any credit concentrations, and changes in the level of such concentrations; and · Any change in the level of board oversight. The Company analyzes its loan portfolio each quarter to determine the adequacy of its ALLL. Loans determined to be TDRs are impaired and for purposes of estimating the ALLL must be individually evaluated for impairment. In calculating the impairment, the Company calculates the present value utilizing an analysis of discounted cash flows. If the present value calculated is below the recorded investment of the loan, impairment is recognized by a charge to the provision for loan and lease losses and a credit to the ALLL. We continually review the model utilized in calculating the required ALLL. The following are explanations for significant changes in the allowance by portfolio segment during the first three months of 2017: · Residential - There was an increase in the historical loss factor for residential loans when comparing March 31, 2017 to December 31, 2016. The specific reserve for residential loans increased slightly from December 31, 2016 to March 31, 2017. The qualitative factor level of and trend in charge-offs was increased for residential loans due the increase in charged off loans in the quarter. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were decreased for residential loans due to the decrease in past due, non-accrual and classified loans. The qualitative factor for national, state, regional and local economic trends and business conditions were decreased for residential loan categories due to a decrease in the unemployment rates in the local economy during 2017. · Commercial real estate– There was an increase in the historical loss factor for commercial real estate loans when comparing March 31, 2017 to December 31, 2016. The specific reserve for commercial real estate loans increased slightly from December 31, 2016 to March 31, 2017. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for all commercial real estate loans due to a decrease in the unemployment rates in the local economy during 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were decreased for commercial real estate loans due to the decrease in past due and classified loans. · Agricultural real estate – There was no change in the historical loss factor for agricultural real estate loans from December 31, 2016 to March 31, 2017. The specific reserve for agricultural real estate loans increased from December 31, 2016 to March 31, 2017. The qualitative factor for industry conditions, including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses, was decreased for agricultural real estate due to the improvement in the ratio of the price received for product sold versus feed costs that has occurred in 2017. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for agricultural real estate loans due to a decrease in the unemployment rates in the local economy during 2017. · Other commercial - There was a decrease in the historical loss factor for other commercial loans when comparing December 31, 2016 to March 31, 2017. The specific reserve for other commercial loans decreased from December 31, 2016 to March 31, 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was decreased due to the decrease in past due loans. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for other commercial loans due to a decrease in the unemployment rates in the local economy during 2017. The following are explanations for changes in the allowance by portfolio segment during the first three months of 2016: · Residential - There was an increase in the historical loss factor for residential loans when comparing December 31, 2015 to Marth 31, 2016. The specific reserve for residential loans increase between December 31, 2015 and March 31, 2016. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for residential loans due to an increase in past due, non-accrual and classified loans. · Commercial real estate– There was an increase in the historical loss factor for commercial real estate loans comparing December 31, 2015 to Marth 31, 2016. The specific reserve for commercial real estate loans increased between December 31, 2015 and March 31, 2016. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for commercial real estate loans due to an increase in past due, non-accrual and classified loans. · Agricultural real estate – There were no changes in the historical loss factor or specific reserves for agricultural real estate loans from December 31, 2015 to March 31, 2016. The qualitative factor for industry conditions, including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses, was increased for agricultural real estate due to the decrease in the price received for product sold and the increase in feed costs that occurred in 2016, which negatively affected customer earnings. · Other commercial - There was a decrease in the historical loss factor for other commercial loans when comparing December 31, 2015 to March 31, 2016. The specific reserve for other commercial loans increased from December 31, 2015 to December 31, 2016. There were no qualitative factor changes in the first quarter of 2016 for other commercial loans. · Other agricultural - There were no changes in the historical loss factor or specific reserves for other agricultural loans from December 31, 2015 to March 31, 2016. The qualitative factor for industry conditions, including the effects of external factors such as competition, legal, and regulatory requirements on the level of estimated credit losses, was increased for other agricultural loans due to the decrease in the price received for product sold and the increase in feed costs that occurred in 2016, which negatively affected customer earnings. · Municipal loans - There was no changes in the historical loss factor or specific reserve for municipal loans from December 31, 2015 to March 31, 2016. There were no qualitative factor changes in the first quarter of 2016 for other commercial loans. Foreclosed Assets Held For Sale Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell, and are included in other assets on the Consolidated Balance Sheet. As of March 31, 2017 and December 31, 2016, included with other assets are $1,248,000 and $1,036,000, respectively, of foreclosed assets. As of March 31, 2017, included within the foreclosed assets are $265,000 of consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to the period end. As of March 31, 2017, the Company has initiated formal foreclosure proceedings on $1,422,000 of consumer residential mortgages, which have not yet been transferred into foreclosed assets.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Other Intangible Assets [Abstract]
Goodwill and Other Intangible Assets	Note 6 – Goodwill and Other Intangible Assets The following table provides the gross carrying value and accumulated amortization of intangible assets as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,509 $ (833 ) $ 676 $ 1,471 $ (787 ) $ 684 Core deposit intangibles 1,641 (388 ) 1,253 1,641 (320 ) 1,321 Covenant not to compete 125 (42 ) 83 125 (34 ) 91 Total amortized intangible assets $ 3,275 $ (1,262 ) $ 2,012 $ 3,237 $ (1,141 ) $ 2,096 Unamortized intangible assets: Goodwill $ 21,089 $ 21,089 (1) Excludes fully amortized intangible assets The following table provides the current year and estimated future amortization expense for amortized intangible assets. We based our projections of amortization expense shown below on existing asset balances at March 31, 2017. Future amortization expense may vary from these projections (in thousands): MSRs Core deposit intangibles Covenant not to compete Total Three months ended March 31, 2017 (actual) $ 47 $ 68 $ 8 $ 123 Three months ended March 31, 2016 (actual) $ 46 $ 74 $ 8 $ 128 Estimate for year ended December 31, Remaining 2017 138 198 23 360 2018 150 236 30 416 2019 119 206 30 355 2020 91 177 - 268 2021 68 147 - 215

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock	3 Months Ended
	Mar. 31, 2017
Federal Home Loan Bank Stock [Abstract]
Federal Home Loan Bank Stock	Note 7 – Federal Home Loan Bank Stock The Bank is a member of the FHLB of Pittsburgh and, as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. As of March 31, 2017 and December 31, 2016, the Bank's investment in FHLB stock was $3,213,600 and $4,542,000, respectively.

Repurchase Agreements

Repurchase Agreements	3 Months Ended
	Mar. 31, 2017
Repurchase Agreements [Abstract]
Repurchase Agreements	Note 8 – Repurchase Agreements We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and to facilitate secured short-term funding needs. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The value of the collateral segmented by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of March 31, 2017 and D ecember 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than March 31, 2017 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,157 $ - $ - $ 2,060 $ 18,217 Total carrying value of collateral pledged $ 16,157 $ - $ - $ 2,060 $ 18,217 Total liability recognized for repurchase agreements $ 15,962 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than December 31, 2016 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,118 $ - $ - $ 2,059 $ 18,177 Total carrying value of collateral pledged $ 16,118 $ - $ - $ 2,059 $ 18,177 Total liability recognized for repurchase agreements $ 14,307

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2017
Employee Benefit Plans [Abstract]
Employee Benefit Plans	Note 9 - Employee Benefit Plans For additional detailed disclosure on the Company's pension and employee benefits plans, please refer to Note 11 of the Company's Consolidated Financial Statements included in the 2016 Annual Report on Form 10-K. Noncontributory Defined Benefit Pension Plan The Bank sponsors a trusteed noncontributory defined benefit pension plan ("Pension Plan") covering substantially all employees and officers hired prior to January 1, 2007. Additionally, the Bank assumed the noncontributory defined benefit pension plan of FNB when it was acquired. The FNB plan was frozen prior to the acquisition and therefore, no additional benefits will accrue for employees covered under that plan. These two plans are collectively referred to herein as "the Plans." In lieu of the Pension Plan, employees with a hire date of January 1, 2007 or later are eligible to receive, after meeting certain length of service requirements, an annual discretionary 401(k) plan contribution from the Bank equal to a percentage of an employee's base compensation. The contribution amount, if any, is placed in a separate account within the 401(k) plan and is subject to a vesting requirement. For employees who are eligible to participate in the Pension Plan, the Pension Plan requires benefits to be paid to eligible employees based primarily upon age and compensation rates during employment. Upon retirement or other termination of employment, employees can elect either an annuity benefit or a lump sum distribution of vested benefits in the Pension Plan. The following sets forth the components of net periodic benefit costs of the Pension Plan for the three months ended March 31, 2017 and 2016, respectively (in thousands): Three Months Ended March 31, 2017 2016 Service cost $ 91 $ 90 Interest cost 167 172 Expected return on plan assets (274 ) (260 ) Net amortization and deferral 60 61 Net periodic benefit cost $ 44 $ 63 The Bank expects to contribute $520,000 to the Pension Plans in 2017. Defined Contribution Plan The Company sponsors a voluntary 401(k) savings plan which eligible employees can elect to contribute up to the maximum amount allowable not to exceed the limits of IRS Code Sections 401(k). Under the plan, the Company also makes required contributions on behalf of the eligible employees. Directors' Deferred Compensation Plan The Company's directors may elect to defer all or portions of their fees until their retirement or termination from service. Amounts deferred under the plan earn interest based upon the highest current rate offered to certificate of deposit customers. Amounts deferred under the plan are not guaranteed and represent a general liability of the Company. At March 31, 2017 and December 31, 2016, an obligation of $907,000 and $940,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Restricted Stock Plan The Company maintains a Restricted Stock Plan (the "Plan") whereby employees and non-employee corporate directors are eligible to receive awards of restricted stock based upon performance related requirements. Awards granted under the Plan are in the form of the Company's common stock and are subject to certain vesting requirements including continuous employment or service with the Company. In April of 2016, the Company's shareholders authorized a total of 150,000 shares of the Company's common stock to be made available under the Plan. As of March 31, 2017, 145,740 shares remain available to be issued under the Plan. The Plan assists the Company in attracting, retaining and motivating employees to make substantial contributions to the success of the Company and to increase the emphasis on the use of equity as a key component of compensation. The following table details the vesting, awarding and forfeiting of restricted shares during the three month period ended March 31, 2017: Weighted Unvested Average Shares Market Price Outstanding, beginning of period 8,471 $ 49.10 Granted 150 51.13 Vested (162 ) (51.24 ) Outstanding, end of period 8,459 $ 49.10 Compensation cost related to restricted stock is recognized, based on the market price of the stock at the grant date, over the vesting period. Compensation expense related to restricted stock was $50,000 and $47,000 for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, the total compensation cost related to nonvested awards that has not yet been recognized was $415,000, which is expected to be recognized over the next three years. Supplemental Executive Retirement Plan The Company maintains a non-qualified supplemental executive retirement plan ("SERP") for certain executives to compensate those executive participants in the Company's noncontributory defined benefit pension plan whose benefits are limited by compensation limitations under current tax law. At March 31, 2017 and December 31, 2016, an obligation of $1,488,000 and $1,460,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Expenses related to this plan totaled $28,000 and $30,000 for the three months ended March 31, 2017 and 2016, respectively. Salary Continuation Plan The Company maintains a salary continuation plan for certain employees retained through the acquisition of FNB or that were formerly employed by FNB. At March 31, 2017 and December 31 2016, an obligation of $720,000 was included in other liabilities for this plan in the Consolidated Balance Sheet. Expenses related to this plan totaled $13,000 and $16,000 for the three months ended March 31, 2017 and 2016, respectively. Continuation of Life Insurance Plan The Company, as part of the acquisition of FNB, has promised a continuation of certain split-dollar life insurance policies that provide coverage to certain persons post-retirement. U.S. generally accepted accounting principles require the recording of post-retirement costs and a liability equal to the present value of the cost of post-retirement insurance during the person's term of service. The estimated present value of future benefits to be paid totaled $571,000 and $569,000 as of March 31, 2017 and December 31, 2016, respectively, which is included in other liabilities in the Consolidated Balance Sheet.

Accumulated Comprehensive Incom

Accumulated Comprehensive Income	3 Months Ended
	Mar. 31, 2017
Accumulated Comprehensive Income [Abstract]
Accumulated Comprehensive Income	Note 9 – Accumulated Comprehensive Income The following tables present the changes in accumulated other comprehensive income by component net of tax for the three months ended March 31, 2017 and 2016 (in thousands): Three months ended March 31, 2017 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income (loss) before reclassifications (net of tax) 46 - 46 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (114 ) 39 (75 ) Net current period other comprehensive income (loss) (68 ) 39 (29 ) Balance as of March 31, 2017 $ 1,238 $ (2,659 ) $ (1,421 ) Three months ended March 31, 2016 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income (loss) before reclassifications (net of tax) 1,117 - 1,117 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (18 ) 40 22 Net current period other comprehensive income (loss) 1,099 40 1,139 Balance as of March 31, 2016 $ 3,303 $ (2,400 ) $ 903 The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive income for the three months ended March 31, 2017 and 2016 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the Consolidated Statement of Income Three Months Ended March 31, 2017 2016 Unrealized gains and losses on available for sale securities $ 172 $ 27 Investment securities gains, net (58 ) (9 ) Provision for income taxes $ 114 $ 18 Net of tax Defined benefit pension items $ 60 ) $ (60 ) Salaries and employee benefits 21 20 Provision for income taxes $ (39 ) $ (40 ) Net of tax Total reclassifications $ 75 $ (22 )

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 10 – Fair Value Measurements The Company has established a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by this hierarchy are as follows Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management's best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. 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 below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company's creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's monthly and/or quarterly valuation process. Financial Instruments Recorded at Fair Value on a Recurring Basis The fair values of securities available for sale are determined by quoted prices in active markets, when available, and classified as Level I. If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique, widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level II. The fair values consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things. The following tables present the assets and liabilities reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of March 31, 2017 and December 31, 2016 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. March 31, 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Securities available for sale: U.S. Agency securities $ - $ 147,658 $ - $ 147,658 Obligations of state and political subdivisions - 88,243 - 88,243 Corporate obligations - 3,095 - 3,095 Mortgage-backed securities in government sponsored entities - 41,118 - 41,118 Equity securities in financial institutions 1,659 - - 1,659 December 31, 2016 Level I Level II Level III Total Fair value measurements on a recurring basis: Securities available for sale: U.S. Agency securities $ - $ 170,414 $ - $ 170,414 U.S. Treasuries securities 3,000 - - 3,000 Obligations of state and political subdivisions - 96,926 - 96,926 Corporate obligations - 3,050 - 3,050 Mortgage-backed securities in government sponsored entities - 37,728 - 37,728 Equity securities in financial institutions 2,899 - - 2,899 Financial Instruments, Non-Financial Assets and Non-Financial Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets, financial liabilities, non-financial assets and non-financial liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a non-recurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test, and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a non-recurring basis during 2017 and 2016 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for possible loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. Assets measured at fair value on a nonrecurring basis as of March 31, 2017 and December 31, 2016 are included in the table below ( in thousands) March 31, 2017 Level I Level II Level III Total Impaired Loans $ - $ - $ 2,064 $ 2,064 Other real estate owned - - 1,074 1,074 December 31, 2016 Impaired Loans $ - $ - $ 2,033 $ 2,033 Other real estate owned - - 839 839 · Impaired Loans - · Other Real Estate Owned (OREO) – The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing Level III techniques (dollars in thousands). Quantitative Information about Level III Fair Value Measurements March 31, 2017 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 2,064 Appraised Collateral Values Discount for time since appraisal 0-90 % 28.73 % Selling costs 5%-10 % 7.55 % Holding period 6 - 12 months 12 months Other real estate owned 1,074 Appraised Collateral Values Discount for time since appraisal 12-47 % 21.51 % December 31, 2016 Fair Value Valuation Technique(s) Unobservable input Range Impaired Loans 2,033 Appraised Collateral Values Discount for time since appraisal 0-65 % 28.98 % Selling costs 5%-9 % 7.56 % Holding period 6 - 12 months 11 months Other real estate owned 839 Appraised Collateral Values Discount for time since appraisal 10-67 % 25.45 % The fair values of the Company's financial instruments are as follows (in thousands): Carrying March 31, 2017 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 14,797 $ 14,797 $ 14,797 $ - $ - Interest bearing time deposits with other banks 6,708 6,712 - - 6,712 Available-for-sale securities 281,773 281,773 1,659 280,114 Loans held for sale 1,581 1,581 1,581 Net loans 835,902 838,299 - - 838,299 Bank owned life insurance 26,389 26,389 26,389 - - Regulatory stock 3,977 3,977 3,977 - - Accrued interest receivable 3,618 3,618 3,618 - - Financial liabilities: Deposits $ 1,037,609 $ 1,036,063 $ 775,628 $ - $ 260,435 Borrowed funds 46,836 45,104 6,849 - 38,255 Accrued interest payable 612 612 612 - - December 31, 2016 Financial assets: Cash and due from banks $ 17,754 $ 17,754 $ 17,754 $ - $ - Interest bearing time deposits with other banks 6,955 6,960 - - 6,960 Available-for-sale securities 314,017 314,017 5,899 308,118 - Loans held for sale 1,827 1,827 1,827 Net loans 790,725 797,184 - - 797,184 Bank owned life insurance 26,223 26,223 26,223 - - Regulatory stock 5,306 5,306 5,306 - - Accrued interest receivable 4,089 4,089 4,089 - - Financial liabilities: Deposits $ 1,005,503 $ 1,004,072 $ 740,889 $ - $ 263,183 Borrowed funds 79,662 77,425 41,330 - 36,095 Accrued interest payable 720 720 720 - Fair value is determined based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions can significantly affect the estimates. Fair values have been determined by the Company using historical data, as generally provided in the Company's regulatory reports, and an estimation methodology suitable for each category of financial instruments. The Company's fair value estimates, methods and assumptions are set forth below for the Company's other financial instruments. Cash and Cash Equivalents: The carrying amounts for cash and cash equivalents approximate fair value because they have original maturities of 90 days or less and do not present unanticipated credit concerns. Accrued Interest Receivable and Payable: The carrying amounts for accrued interest receivable and payable approximate fair value because they are generally received or paid in 90 days or less and do not present unanticipated credit concerns. Interest bearing time deposits with other banks: The fair value of interest bearing time deposits with other banks is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Available-For-Sale Securities: The fair values of securities available for sale are determined by quoted prices in active markets, when available, and classified as Level I. If quoted market prices are not available, the fair value is determined by a matrix pricing, which is a mathematical technique, widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities and classified as Level II. The fair values consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other things. Loans held-for-sale: The carrying amount for loans held for sale approximates fair value as the loans are only held for less than a week from origination. Loans: Fair values are estimated for portfolios of loans with similar financial characteristics. The fair value of performing loans has been estimated by discounting expected future cash flows. The discount rate used in these calculations is derived from the Treasury yield curve adjusted for credit quality, operating expense and prepayment option price, and is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Company's historical experience with repayments for each loan classification, modified as required by an estimate of the effect of current economic and lending conditions. Bank Owned Life Insurance: The carrying value of bank owned life insurance approximates fair value based on applicable redemption provisions. Regulatory Stock: The carrying value of regulatory stock approximates fair value based on applicable redemption provisions. Deposits: The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings and NOW accounts, and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The deposits' fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market, commonly referred to as the core deposit intangible. Borrowed Funds: Rates available to the Company for borrowed funds with similar terms and remaining maturities are used to estimate the fair value of borrowed funds.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	Note 11 – Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, we do not expect the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers ( Topic 606 ). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019 In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). In January 2016, the FASB issued ASU 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) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity's ordinary activities) in exchange for consideration. The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) . The amendments in this Update affect all entities that issue share-based payment awards to their employees. The standards in this Update provide simplification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as with equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment . This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date This Update is not expected to have a significant impact on the Company's consolidated financial statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The Company is currently evaluating the impact the adoption of the standard will have on the Company's statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810) This Update is not expected to have a significant impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) The Company is currently evaluating the impact the adoption of the standard will have on the Company's statement of cash flows. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323), Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . In February 2017, the FASB issued , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) . This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. In March 2017, the FASB issued ASU 2017-07, Compensation — Retirement Benefits (Topic 715) . In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20).

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Basis of Presentation [Abstract]
Basis of Presentation	Citizens Financial Services, Inc. (individually and collectively with its direct and indirect subsidiaries, the "Company") is a Pennsylvania corporation and the holding company of its wholly owned subsidiary, First Citizens Community Bank (the "Bank"), and of the Bank's wholly owned subsidiary, First Citizens Insurance Agency, Inc. ("First Citizens Insurance"). The accompanying consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission ("SEC") and in conformity with U.S. generally accepted accounting principles. Because this report is based on an interim period, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. Certain of the prior year amounts have been reclassified to conform with the current year presentation. Such reclassifications had no effect on net income or stockholders' equity. All material inter‑company balances and transactions have been eliminated in consolidation. In the opinion of management of the Company, the accompanying interim financial statements at March 31, 2017 and for the periods ended March 31, 2017 and 2016 include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial condition and the results of operations for the periods. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. The financial performance reported for the Company for the three month period ended March 31, 2017 is not necessarily indicative of the results to be expected for the full year. This information should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2016.

Recent Accounting Pronounceme20

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2017
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Because the guidance does not apply to revenue associated with financial instruments, including loans and securities, we do not expect the new standard, or any of the amendments, to result in a material change from our current accounting for revenue because the majority of the Company's financial instruments are not within the scope of Topic 606. However, we do expect that the standard will result in new disclosure requirements, which are currently being evaluated. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers ( Topic 606 ). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019 In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). In January 2016, the FASB issued ASU 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) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity's ordinary activities) in exchange for consideration. The amendments in this Update do not change the core principle of the guidance in Topic 606; they simply clarify the implementation guidance on principal versus agent considerations. The amendments in this Update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements of Update 2014-09. ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) . The amendments in this Update affect all entities that issue share-based payment awards to their employees. The standards in this Update provide simplification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as with equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment . This should not result in a change in practice because the guidance that is being superseded was never effective. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. For all other entities, the amendments are effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for any entity in any interim or annual period. The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). The amendments in this Update affect entities with transactions included within the scope of Topic 606, which includes entities that enter into contracts with customers to transfer goods or services in exchange for consideration. The amendments in this Update do not change the core principle for revenue recognition in Topic 606. Instead, the amendments provide (1) more detailed guidance in a few areas and (2) additional implementation guidance and examples based on feedback the FASB received from its stakeholders. The amendments are expected to reduce the degree of judgment necessary to comply with Topic 606, which the FASB expects will reduce the potential for diversity arising in practice and reduce the cost and complexity of applying the guidance. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date , defers the effective date of Update 2014-09 by one year. The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date This Update is not expected to have a significant impact on the Company's consolidated financial statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The Company is currently evaluating the impact the adoption of the standard will have on the Company's statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810) This Update is not expected to have a significant impact on the Company's consolidated financial statements. In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) The Company is currently evaluating the impact the adoption of the standard will have on the Company's statement of cash flows. In December 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business The Company is currently evaluating the impact the adoption of the standard will have on the Company's consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323), Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is a U.S. Securities and Exchange Commission ("SEC") filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. A public business entity that is not an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2020. All other entities, including not-for-profit entities that are adopting the amendments in this Update should do so for their annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2021. In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . In February 2017, the FASB issued , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) . This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. In March 2017, the FASB issued ASU 2017-07, Compensation — Retirement Benefits (Topic 715) . In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20).

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings per Share [Abstract]
Computation of earnings per share	The following table sets forth the computation of earnings per share. Earnings per share calculations give retroactive effect to stock dividends declared by the Company. Three months ended March 31, 2017 2016 Net income applicable to common stock $ 3,303,000 $ 3,283,000 Basic earnings per share computation Weighted average common shares outstanding 3,313,616 3,356,573 Earnings per share - basic $ 1.00 $ 0.98 Diluted earnings per share computation Weighted average common shares outstanding for basic earnings per share 3,313,616 3,356,573 Add: Dilutive effects of restricted stock 20 - Weighted average common shares outstanding for dilutive earnings per share 3,313,636 3,356,573 Earnings per share - diluted $ 1.00 $ 0.98

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Investments [Abstract]
Summary of amortized cost, gross unrealized gains and losses, and fair value of investment securities	The amortized cost, gross unrealized gains and losses, and fair value of investment securities at March 31, 2017 and December 31, 2016 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair March 31, 2017 Cost Gains Losses Value Available-for-sale securities: U.S. agency securities $ 147,624 $ 297 $ (263 ) $ 147,658 Obligations of state and political subdivisions 87,082 1,500 (339 ) 88,243 Corporate obligations 3,000 95 - 3,095 Mortgage-backed securities in government sponsored entities 41,292 82 (256 ) 41,118 Equity securities in financial institutions 899 760 - 1,659 Total available-for-sale securities $ 279,897 $ 2,734 $ (858 ) $ 281,773 December 31, 2016 Available-for-sale securities: U.S. agency securities $ 170,276 $ 407 $ (269 ) $ 170,414 U.S. treasury securities 2,999 1 - 3,000 Obligations of state and political subdivisions 95,956 1,463 (493 ) 96,926 Corporate obligations 3,000 50 - 3,050 Mortgage-backed securities in government sponsored entities 37,987 88 (347 ) 37,728 Equity securities in financial institutions 1,821 1,078 - 2,899 Total available-for-sale securities $ 312,039 $ 3,087 $ (1,109 ) $ 314,017
Unrealized losses and fair value of investments	The following table shows the Company's gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at March 31, 2017 and December 31, 2016 (in thousands). As of March 31, 2017, the Company owned 80 securities whose fair value was less than their cost basis. Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2017 Value Losses Value Losses Value Losses U.S. agency securities $ 61,938 $ (263 ) $ - $ - $ 61,938 $ (263 ) Obligations of state and political subdivisions 18,733 (279 ) 2,117 (60 ) 20,850 (339 ) Mortgage-backed securities in government sponsored entities 23,028 (221 ) 3,159 (35 ) 26,187 (256 ) Total securities $ 103,699 $ (763 ) $ 5,276 $ (95 ) $ 108,975 $ (858 ) December 31, 2016 U.S. agency securities $ 50,947 $ (269 ) $ - $ - $ 50,947 $ (269 ) Obligations of states and political subdivisions 28,398 (472 ) 767 (21 ) 29,165 (493 ) Mortgage-backed securities in government sponsored entities 26,717 (330 ) 753 (17 ) 27,470 (347 ) Total securities $ 106,062 $ (1,071 ) $ 1,520 $ (38 ) $ 107,582 $ (1,109 )
Gross gains and losses on available-for-sale securities	The gross gains and losses were as follows (in thousands): Three Months Ended March 31, 2017 2016 Gross gains $ 172 $ 27 Gross losses - - Net gains $ 172 $ 27
Summary of amortized cost and fair value of debt securities by contractual maturity	The amortized cost and fair value of debt securities (excludes equity securities) at March 31, 2017, by contractual maturity, are shown below (in thousands): Amortized Cost Fair Value Available-for-sale debt securities: Due in one year or less $ 36,081 $ 36,288 Due after one year through five years 141,531 142,341 Due after five years through ten years 38,172 38,283 Due after ten years 63,214 63,202 Total $ 278,998 $ 280,114

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2017
Loans [Abstract]
Summary of loan portfolio and allowance for loan losses	The following table summarizes the primary segments of the loan portfolio and how those segments are analyzed within the allowance for loan losses as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 203,817 $ 945 $ 35 $ 202,837 Commercial 267,097 6,347 1,965 258,785 Agricultural 156,299 3,476 737 152,086 Construction 26,118 - - 26,118 Consumer 10,508 2 1 10,505 Other commercial loans 59,800 5,281 863 53,656 Other agricultural loans 24,227 1,612 - 22,615 State and political subdivision loans 97,441 - - 97,441 Total 845,307 17,663 3,601 824,043 Allowance for loan losses 9,405 404 - 9,001 Net loans $ 835,902 $ 17,259 $ 3,601 $ 815,042 December 31, 2016 Real estate loans: Residential $ 207,423 $ 957 $ 35 $ 206,431 Commercial 252,577 5,742 1,969 244,866 Agricultural 123,624 3,346 738 119,540 Construction 25,441 - - 25,441 Consumer 11,005 - 4 11,001 Other commercial loans 58,639 5,994 621 52,024 Other agricultural loans 23,388 1,654 - 21,734 State and political subdivision loans 97,514 - - 97,514 Total 799,611 17,693 3,367 778,551 Allowance for loan losses 8,886 487 - 8,399 Net loans $ 790,725 $ 17,206 $ 3,367 $ 770,152
Accretable yield for purchased credit impaired loans	Changes in the accretable yield for PCI loans were as follows for the three months ended March 31, 2017 and 2016, respectively (in thousands): March 31, 2017 March 31, 2016 Balance at beginning of period $ 389 $ 637 Accretion (114 ) (86 ) Balance at end of period $ 275 $ 551
Loans acquired with specific evidence of deterioration in credit quality	The following table presents additional information regarding loans acquired with specific evidence of deterioration in credit quality under ASC 310-30 (in thousands): March 31, 2017 December 31, 2016 Outstanding balance $ 6,688 $ 6,487 Carrying amount 3,601 3,367
Impaired financing receivables with associated allowance amount	The following table includes the recorded investment and unpaid principal balances for impaired financing receivables by class, excluding PCI loans, with the associated allowance amount, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related March 31, 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 949 $ 568 $ 322 $ 890 $ 28 Home Equity 55 - 55 55 10 Commercial 8,628 5,937 410 6,347 47 Agricultural 3,487 2,146 1,330 3,476 103 Construction - - - - - Consumer 2 - 2 2 2 Other commercial loans 5,797 4,806 475 5,281 195 Other agricultural loans 1,612 1,593 19 1,612 19 State and political subdivision loans - - - - - Total $ 20,530 $ 15,050 $ 2,613 $ 17,663 $ 404 December 31, 2016 Real estate loans: Mortgages $ 953 $ 570 $ 330 $ 900 $ 22 Home Equity 57 - 57 57 10 Commercial 7,958 5,697 45 5,742 45 Agricultural 3,347 2,000 1,347 3,347 54 Construction - - - - - Consumer - - - - - Other commercial loans 6,159 5,135 859 5,994 326 Other agricultural loans 1,653 1,629 24 1,653 30 State and political subdivision loans - - - - - Total $ 20,127 $ 15,031 $ 2,662 $ 17,693 $ 487 The following tables includes the average balance of impaired financing receivables by class and the income recognized on these receivables for the three month periods ended March 31, 2017 and 2016(in thousands): For the Three Months Ended March 31, 2017 March 31, 2016 Interest Interest Average Interest Income Average Interest Income Recorded Income Recognized Recorded Income Recognized Investment Recognized Cash Basis Investment Recognized Cash Basis Real estate loans: Mortgages $ 894 $ 3 $ - $ 391 $ 4 $ - Home Equity 56 1 - 60 1 - Commercial 5,793 24 3 6,179 26 - Agricultural 3,382 31 - 165 2 - Construction - - - - - - Consumer 1 - - - - - Other commercial loans 5,597 40 10 5,952 66 1 Other agricultural loans 1,627 23 - 105 1 - State and political subdivision loans - - - - - - Total $ 17,350 $ 122 $ 13 $ 12,852 $ 100 $ 1
Summary of financing receivable credit exposures by internally assigned grades	The following tables represent credit exposures by internally assigned grades as of March 31, 2017 and December 31, 2016 (in thousands) March 31, 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 240,229 $ 14,732 $ 12,136 $ - $ - $ 267,097 Agricultural 143,715 7,835 4,749 - - 156,299 Construction 26,118 - - - - 26,118 Other commercial loans 53,657 1,560 4,498 85 - 59,800 Other agricultural loans 21,218 1,300 1,709 - - 24,227 State and political subdivision loans 83,548 13,095 798 - - 97,441 Total $ 568,485 $ 38,522 $ 23,890 $ 85 $ - $ 630,982 December 31, 2016 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 225,185 $ 14,045 $ 13,347 $ - $ - $ 252,577 Agricultural 110,785 8,231 4,608 - - 123,624 Construction 25,441 - - - - 25,441 Other commercial loans 51,396 2,049 5,105 89 - 58,639 Other agricultural loans 20,178 1,733 1,477 - - 23,388 State and political subdivision loans 83,620 13,066 828 - - 97,514 Total $ 516,605 $ 39,124 $ 25,365 $ 89 $ - $ 581,183 For residential real estate mortgages, home equity and consumer loans, credit quality is monitored based on whether the loan is performing or non-performing, which is typically based on the aging status of the loan and payment activity, unless a specific action, such as bankruptcy, repossession, death or significant delay in payment occurs to raise awareness of a possible credit event. Non-performing loans include those loans that are considered nonaccrual, described in more detail below, and all loans past due 90 or more days and still accruing. The following table presents the recorded investment in those loan classes based on payment activity as of March 31, 2017 and December 31, 2016 ( in thousands) March 31, 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 145,446 $ 1,539 $ 35 $ 147,020 Home Equity 56,566 231 - 56,797 Consumer 10,395 112 1 10,508 Total $ 212,407 $ 1,882 $ 36 $ 214,325 December 31, 2016 Real estate loans: Mortgages $ 147,047 $ 1,648 $ 35 $ 148,730 Home Equity 58,438 255 - $ 58,693 Consumer 10,892 109 4 $ 11,005 Total $ 216,377 $ 2,012 $ 39 $ 218,428
Aging analysis of past due financing receivables	The following table includes an aging analysis of the recorded investment of past due financing receivables as of March 31, 2017 and December 31, 2016 (in thousands): Total 90 Days or 30-59 Days 60-89 Days 90 Days Total Past Financing Greater and March 31, 2017 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 315 $ 49 $ 988 $ 1,352 $ 145,633 $ 35 $ 147,020 $ 230 Home Equity 156 85 188 429 56,368 - 56,797 146 Commercial 301 645 3,973 4,919 260,213 1,965 267,097 58 Agricultural 22 - 1,338 1,360 154,202 737 156,299 334 Construction - - - - 26,118 - 26,118 - Consumer 90 35 110 235 10,272 1 10,508 22 Other commercial loans 161 2 2,597 2,760 56,177 863 59,800 - Other agricultural loans 774 - 225 999 23,228 - 24,227 225 State and political subdivision loans - - - - 97,441 - 97,441 - Total $ 1,819 $ 816 $ 9,419 $ 12,054 $ 829,652 $ 3,601 $ 845,307 $ 1,015 Loans considered non-accrual $ 77 $ 10 $ 8,404 $ 8,491 $ 1,991 $ - $ 10,482 Loans still accruing 1,742 806 1,015 3,563 827,661 3,601 834,825 Total $ 1,819 $ 816 $ 9,419 $ 12,054 $ 829,652 $ 3,601 $ 845,307 December 31, 2016 Real estate loans: Mortgages $ 630 $ 36 $ 1,109 $ 1,775 $ 146,920 $ 35 $ 148,730 $ 173 Home Equity 384 49 209 642 58,051 - 58,693 160 Commercial 1,757 58 4,302 6,117 244,491 1,969 252,577 - Agricultural - - 1,145 1,145 121,741 738 123,624 - Construction - - - - 25,441 - 25,441 - Consumer 115 40 83 238 10,763 4 11,005 67 Other commercial loans 95 35 4,004 4,134 53,884 621 58,639 - Other agricultural loans 43 34 5 82 23,306 - 23,388 5 State and political subdivision loans - - - - 97,514 - 97,514 - Total $ 3,024 $ 252 $ 10,857 $ 14,133 $ 782,111 $ 3,367 $ 799,611 $ 405 Loans considered non-accrual $ 172 $ 105 $ 10,452 $ 10,729 $ 725 $ - $ 11,454 Loans still accruing 2,852 147 405 3,404 781,386 3,367 788,157 Total $ 3,024 $ 252 $ 10,857 $ 14,133 $ 782,111 $ 3,367 $ 799,611
Summary of financing receivables on nonaccrual status	The following table reflects the financing receivables, excluding PCI loans, on non-accrual status as of March 31, 2017 and December 31, 2016, respectively. The balances are presented by class of financing receivable (in thousands): March 31, 2017 December 31, 2016 Real estate loans: Mortgages $ 1,309 $ 1,475 Home Equity 85 95 Commercial 4,448 4,445 Agricultural 1,322 1,340 Consumer 90 42 Other commercial loans 3,228 4,057 $ 10,482 $ 11,454
Summary of troubled debt restructurings on financing receivables	Loan modifications that are considered TDRs completed during the three months ended March 31, 2017 were as follows (dollars in thousands): For the Three Months Ended March 31, 2017 Number of contracts Pre-modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Interest Modification Term Modification Interest Modification Term Modification Interest Modification Term Modification Real estate loans: Commercial - 2 $ - $ 703 $ - $ 703 Total - 2 $ - $ 703 $ - $ 703
Allowance for loan losses by impairment method	The following table segregates the allowance for loan losses (ALLL) into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2017 and December 31, 2016, respectively (in thousands): March 31, 2017 December 31, 2016 Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total Real estate loans: Residential $ 38 $ 1,004 $ 1,042 $ 32 $ 1,032 $ 1,064 Commercial 47 3,618 3,665 45 3,544 3,589 Agricultural 103 1,849 1,952 54 1,440 1,494 Construction - 46 46 - 47 47 Consumer 2 121 123 - 122 122 Other commercial loans 195 1,020 1,215 326 1,001 1,327 Other agricultural loans 19 287 306 30 282 312 State and political subdivision loans - 824 824 - 833 833 Unallocated - 232 232 - 98 98 Total $ 404 $ 9,001 $ 9,405 $ 487 $ 8,399 $ 8,886
Roll forward of allowance for loan losses by portfolio segment	The following tables roll forward the balance of the ALLL by portfolio segment for the three month periods ended March 31, 2017 and 2016, respectively (in thousands): For the three months ended March 31, 2017 Balance at December 31, 2016 Charge-offs Recoveries Provision Balance at March 31, 2017 Real estate loans: Residential $ 1,064 $ (45 ) $ - $ 23 $ 1,042 Commercial 3,589 (41 ) 4 113 3,665 Agricultural 1,494 458 1,952 Construction 47 - - (1 ) 46 Consumer 122 (28 ) 10 19 123 Other commercial loans 1,327 - 9 (121 ) 1,215 Other agricultural loans 312 (5 ) (1 ) 306 State and political subdivision loans 833 - - (9 ) 824 Unallocated 98 - - 134 232 Total $ 8,886 $ (119 ) $ 23 $ 615 $ 9,405 For the three months ended March 31, 2016 Balance at December 31, 2015 Charge-offs Recoveries Provision Balance at March 31, 2016 Real estate loans: Residential $ 905 $ - $ - $ 61 $ 966 Commercial 3,376 - 4 153 3,533 Agricultural 409 (4 ) 405 Construction 24 - - (10 ) 14 Consumer 102 (15 ) 39 (30 ) 96 Other commercial loans 1,183 - 6 33 1,222 Other agricultural loans 122 3 125 State and political - subdivision loans 593 - - 73 666 Unallocated 392 - - (144 ) 248 Total $ 7,106 $ (15 ) $ 49 $ 135 $ 7,275

Goodwill and Other Intangible24

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Other Intangible Assets [Abstract]
Schedule of gross carrying value and accumulated amortization of intangible assets	The following table provides the gross carrying value and accumulated amortization of intangible assets as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value Amortized intangible assets (1): MSRs $ 1,509 $ (833 ) $ 676 $ 1,471 $ (787 ) $ 684 Core deposit intangibles 1,641 (388 ) 1,253 1,641 (320 ) 1,321 Covenant not to compete 125 (42 ) 83 125 (34 ) 91 Total amortized intangible assets $ 3,275 $ (1,262 ) $ 2,012 $ 3,237 $ (1,141 ) $ 2,096 Unamortized intangible assets: Goodwill $ 21,089 $ 21,089 (1) Excludes fully amortized intangible assets
Schedule of future amortization expense for amortized intangible assets	The following table provides the current year and estimated future amortization expense for amortized intangible assets. We based our projections of amortization expense shown below on existing asset balances at March 31, 2017. Future amortization expense may vary from these projections (in thousands): MSRs Core deposit intangibles Covenant not to compete Total Three months ended March 31, 2017 (actual) $ 47 $ 68 $ 8 $ 123 Three months ended March 31, 2016 (actual) $ 46 $ 74 $ 8 $ 128 Estimate for year ended December 31, Remaining 2017 138 198 23 360 2018 150 236 30 416 2019 119 206 30 355 2020 91 177 - 268 2021 68 147 - 215

Repurchase Agreements (Tables)

Repurchase Agreements (Tables)	3 Months Ended
	Mar. 31, 2017
Repurchase Agreements [Abstract]
Remaining contractual maturity of the repurchase agreements	The value of the collateral segmented by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of March 31, 2017 and D ecember 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than March 31, 2017 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,157 $ - $ - $ 2,060 $ 18,217 Total carrying value of collateral pledged $ 16,157 $ - $ - $ 2,060 $ 18,217 Total liability recognized for repurchase agreements $ 15,962 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than December 31, 2016 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,118 $ - $ - $ 2,059 $ 18,177 Total carrying value of collateral pledged $ 16,118 $ - $ - $ 2,059 $ 18,177 Total liability recognized for repurchase agreements $ 14,307

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2017
Employee Benefit Plans [Abstract]
Components of net periodic benefit costs	The following sets forth the components of net periodic benefit costs of the Pension Plan for the three months ended March 31, 2017 and 2016, respectively (in thousands): Three Months Ended March 31, 2017 2016 Service cost $ 91 $ 90 Interest cost 167 172 Expected return on plan assets (274 ) (260 ) Net amortization and deferral 60 61 Net periodic benefit cost $ 44 $ 63
Schedule of restricted stock activity	The following table details the vesting, awarding and forfeiting of restricted shares during the three month period ended March 31, 2017: Weighted Unvested Average Shares Market Price Outstanding, beginning of period 8,471 $ 49.10 Granted 150 51.13 Vested (162 ) (51.24 ) Outstanding, end of period 8,459 $ 49.10

Accumulated Comprehensive Inc27

Accumulated Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2017
Accumulated Comprehensive Income [Abstract]
Changes in accumulated other comprehensive income by component, net of tax	The following tables present the changes in accumulated other comprehensive income by component net of tax for the three months ended March 31, 2017 and 2016 (in thousands): Three months ended March 31, 2017 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income (loss) before reclassifications (net of tax) 46 - 46 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (114 ) 39 (75 ) Net current period other comprehensive income (loss) (68 ) 39 (29 ) Balance as of March 31, 2017 $ 1,238 $ (2,659 ) $ (1,421 ) Three months ended March 31, 2016 Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income (loss) before reclassifications (net of tax) 1,117 - 1,117 Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (18 ) 40 22 Net current period other comprehensive income (loss) 1,099 40 1,139 Balance as of March 31, 2016 $ 3,303 $ (2,400 ) $ 903
Significant amounts reclassified out of each component of accumulated other comprehensive income	The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive income for the three months ended March 31, 2017 and 2016 (in thousands): Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the Consolidated Statement of Income Three Months Ended March 31, 2017 2016 Unrealized gains and losses on available for sale securities $ 172 $ 27 Investment securities gains, net (58 ) (9 ) Provision for income taxes $ 114 $ 18 Net of tax Defined benefit pension items $ 60 ) $ (60 ) Salaries and employee benefits 21 20 Provision for income taxes $ (39 ) $ (40 ) Net of tax Total reclassifications $ 75 $ (22 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Measurements [Abstract]
Summary of assets measured at fair value on a recurring basis	The following tables present the assets and liabilities reported on the Consolidated Balance Sheet at their fair value on a recurring basis as of March 31, 2017 and December 31, 2016 by level within the fair value hierarchy (in thousands). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. March 31, 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Assets Securities available for sale: U.S. Agency securities $ - $ 147,658 $ - $ 147,658 Obligations of state and political subdivisions - 88,243 - 88,243 Corporate obligations - 3,095 - 3,095 Mortgage-backed securities in government sponsored entities - 41,118 - 41,118 Equity securities in financial institutions 1,659 - - 1,659 December 31, 2016 Level I Level II Level III Total Fair value measurements on a recurring basis: Securities available for sale: U.S. Agency securities $ - $ 170,414 $ - $ 170,414 U.S. Treasuries securities 3,000 - - 3,000 Obligations of state and political subdivisions - 96,926 - 96,926 Corporate obligations - 3,050 - 3,050 Mortgage-backed securities in government sponsored entities - 37,728 - 37,728 Equity securities in financial institutions 2,899 - - 2,899
Summary of assets measured at fair value on non-recurring basis	Assets measured at fair value on a nonrecurring basis as of March 31, 2017 and December 31, 2016 are included in the table below ( in thousands) March 31, 2017 Level I Level II Level III Total Impaired Loans $ - $ - $ 2,064 $ 2,064 Other real estate owned - - 1,074 1,074 December 31, 2016 Impaired Loans $ - $ - $ 2,033 $ 2,033 Other real estate owned - - 839 839
Significant unobservable inputs used in fair value measurement process	The following table provides a listing of the significant unobservable inputs used in the fair value measurement process for items valued utilizing Level III techniques (dollars in thousands). Quantitative Information about Level III Fair Value Measurements March 31, 2017 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 2,064 Appraised Collateral Values Discount for time since appraisal 0-90 % 28.73 % Selling costs 5%-10 % 7.55 % Holding period 6 - 12 months 12 months Other real estate owned 1,074 Appraised Collateral Values Discount for time since appraisal 12-47 % 21.51 % December 31, 2016 Fair Value Valuation Technique(s) Unobservable input Range Impaired Loans 2,033 Appraised Collateral Values Discount for time since appraisal 0-65 % 28.98 % Selling costs 5%-9 % 7.56 % Holding period 6 - 12 months 11 months Other real estate owned 839 Appraised Collateral Values Discount for time since appraisal 10-67 % 25.45 %
Fair value of financial instruments	The fair values of the Company's financial instruments are as follows (in thousands): Carrying March 31, 2017 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 14,797 $ 14,797 $ 14,797 $ - $ - Interest bearing time deposits with other banks 6,708 6,712 - - 6,712 Available-for-sale securities 281,773 281,773 1,659 280,114 Loans held for sale 1,581 1,581 1,581 Net loans 835,902 838,299 - - 838,299 Bank owned life insurance 26,389 26,389 26,389 - - Regulatory stock 3,977 3,977 3,977 - - Accrued interest receivable 3,618 3,618 3,618 - - Financial liabilities: Deposits $ 1,037,609 $ 1,036,063 $ 775,628 $ - $ 260,435 Borrowed funds 46,836 45,104 6,849 - 38,255 Accrued interest payable 612 612 612 - - December 31, 2016 Financial assets: Cash and due from banks $ 17,754 $ 17,754 $ 17,754 $ - $ - Interest bearing time deposits with other banks 6,955 6,960 - - 6,960 Available-for-sale securities 314,017 314,017 5,899 308,118 - Loans held for sale 1,827 1,827 1,827 Net loans 790,725 797,184 - - 797,184 Bank owned life insurance 26,223 26,223 26,223 - - Regulatory stock 5,306 5,306 5,306 - - Accrued interest receivable 4,089 4,089 4,089 - - Financial liabilities: Deposits $ 1,005,503 $ 1,004,072 $ 740,889 $ - $ 263,183 Borrowed funds 79,662 77,425 41,330 - 36,095 Accrued interest payable 720 720 720 -

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings per share basic and diluted [Abstract]
Net income applicable to common stock	$ 3,303	$ 3,283
Basic earnings per share computation [Abstract]
Weighted average common shares outstanding (in shares)	3,313,616	3,356,573
Earnings per share - basic (in dollars per share)	$ 1	$ 0.98
Diluted earnings per share computation [Abstract]
Weighted average common shares outstanding for basic earnings per share (in shares)	3,313,616	3,356,573
Add: Dilutive effects of restricted stock (in shares)	20	0
Weighted average common shares outstanding for dilutive earnings per share (in shares)	3,313,636	3,356,573
Earnings per share - diluted (in dollars per share)	$ 1	$ 0.98
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive restricted stock excluded from net income per share calculations (in shares)	2,087	5,325
Restricted Stock [Member] | Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock share price range (in dollars per share)	$ 49.87	$ 46.69
Restricted Stock [Member] | Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock share price range (in dollars per share)	$ 53.15	$ 53.15

Income Tax Expense (Details)

Income Tax Expense (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)Partnership	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)Partnership
Income Tax Expense [Abstract]
Number of investments in partnerships | Partnership	4		4
Investment amount in partnerships	$ 660,000		$ 700,000
Investment Tax Credit Carryforward [Member]
Tax Credit Carryforward [Line Items]
Investment tax credits	$ 811,000
Tax credits recognition period	5 years 9 months
Tax credits recognized as reduction of tax expense amount	$ 35,000	$ 50,000
Amortization of investment in other expenses	$ 40,000	$ 65,000

Investments (Details)

Investments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Security	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract]
Amortized Cost	$ 279,897		$ 312,039
Gross Unrealized Gains	2,734		3,087
Gross Unrealized Losses	(858)		(1,109)
Fair Value	$ 281,773		314,017
Number of securities owned with fair value less than cost | Security	80
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than Twelve Months, Fair Value	$ 103,699		106,062
Twelve Months or Greater, Fair Value	5,276		1,520
Total, Fair Value	108,975		107,582
Less than Twelve Months, Gross Unrealized Losses	(763)		(1,071)
Twelve Months or Greater, Gross Unrealized Losses	(95)		(38)
Total, Gross Unrealized Losses	(858)		(1,109)
Proceeds from sale of securities available-for-sale	18,766	$ 5,020
Realized investment gains (losses) [Abstract]
Gross gains	172	27
Gross losses	0	0
Net gains	172	$ 27
Investment securities pledged as collateral	206,500		206,300
Available-for-Sale Debt Securities, Amortized Cost [Abstract]
Due in one year or less	36,081
Due after one year through five years	141,531
Due after five years through ten years	38,172
Due after ten years	63,214
Total	278,998
Available-for-Sale Debt Securities, Fair Value [Abstract]
Due in one year or less	36,288
Due after one year through five years	142,341
Due after five years through ten years	38,283
Due after ten years	63,202
Total	$ 280,114
Minimum [Member]
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Duration securities impaired	1 year
U.S. Agency Securities [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract]
Amortized Cost	$ 147,624		170,276
Gross Unrealized Gains	297		407
Gross Unrealized Losses	(263)		(269)
Fair Value	147,658		170,414
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than Twelve Months, Fair Value	61,938		50,947
Twelve Months or Greater, Fair Value	0		0
Total, Fair Value	61,938		50,947
Less than Twelve Months, Gross Unrealized Losses	(263)		(269)
Twelve Months or Greater, Gross Unrealized Losses	0		0
Total, Gross Unrealized Losses	(263)		(269)
U.S. Treasury Securities [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract]
Amortized Cost			2,999
Gross Unrealized Gains			1
Gross Unrealized Losses			0
Fair Value			3,000
Obligations of State and Political Subdivisions [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract]
Amortized Cost	87,082		95,956
Gross Unrealized Gains	1,500		1,463
Gross Unrealized Losses	(339)		(493)
Fair Value	88,243		96,926
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than Twelve Months, Fair Value	18,733		28,398
Twelve Months or Greater, Fair Value	2,117		767
Total, Fair Value	20,850		29,165
Less than Twelve Months, Gross Unrealized Losses	(279)		(472)
Twelve Months or Greater, Gross Unrealized Losses	(60)		(21)
Total, Gross Unrealized Losses	(339)		(493)
Corporate Obligations [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract]
Amortized Cost	3,000		3,000
Gross Unrealized Gains	95		50
Gross Unrealized Losses	0		0
Fair Value	3,095		3,050
Mortgage-backed Securities in Government Sponsored Entities [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract]
Amortized Cost	41,292		37,987
Gross Unrealized Gains	82		88
Gross Unrealized Losses	(256)		(347)
Fair Value	41,118		37,728
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than Twelve Months, Fair Value	23,028		26,717
Twelve Months or Greater, Fair Value	3,159		753
Total, Fair Value	26,187		27,470
Less than Twelve Months, Gross Unrealized Losses	(221)		(330)
Twelve Months or Greater, Gross Unrealized Losses	(35)		(17)
Total, Gross Unrealized Losses	(256)		(347)
Equity Securities in Financial Institutions [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value [Abstract]
Amortized Cost	899		1,821
Gross Unrealized Gains	760		1,078
Gross Unrealized Losses	0		0
Fair Value	$ 1,659		$ 2,899

Loans (Details)

Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			$ 845,307	$ 799,611
Individually evaluated for impairment			17,663	17,693
Loans acquired with deteriorated credit quality			3,601	3,367
Collectively evaluated for impairment			824,043	778,551
Allowance for loan losses			9,405	8,886
Allowance for loan losses related to individually evaluated for impairment			404	487
Allowance for loan losses related to loans acquired with deteriorated credit quality			0	0
Allowance for loan losses related to collectively evaluated for impairment			9,001	8,399
Net loans			835,902	790,725
Net loans, individually evaluated for impairment			17,259	17,206
Net loans, loans acquired with deteriorated credit quality			3,601	3,367
Net loans, collectively evaluated for impairment			815,042	770,152
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			404	487
Collectively evaluated for impairment			9,001	8,399
Total	$ 8,886	$ 7,106	9,405	8,886
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	8,886	7,106
Charge-offs	(119)	(15)
Recoveries	23	49
Provision	615	135
Balance at end of period	$ 9,405	7,275
Minimum [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Number of days past for loan to be considered impaired, Minimum	90 days
First Mortgage [Member] | Minimum [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Period of mortgage on real estate	15 years
First Mortgage [Member] | Maximum [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Period of mortgage on real estate	30 years
Second Mortgage [Member] | Maximum [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Period of mortgage on real estate	15 years
Commercial [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			267,097	252,577
Individually evaluated for impairment			6,347	5,742
Loans acquired with deteriorated credit quality			1,965	1,969
Collectively evaluated for impairment			258,785	244,866
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			47	45
Collectively evaluated for impairment			3,618	3,544
Total	$ 3,665	3,376	3,665	3,589
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	3,589	3,376
Charge-offs	(41)	0
Recoveries	4	4
Provision	113	153
Balance at end of period	3,665	3,533
Agricultural [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			156,299	123,624
Individually evaluated for impairment			3,476	3,346
Loans acquired with deteriorated credit quality			737	738
Collectively evaluated for impairment			152,086	119,540
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			103	54
Collectively evaluated for impairment			1,849	1,440
Total	1,952	409	1,952	1,494
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	1,494	409
Charge-offs	0	0
Recoveries	0	0
Provision	458	(4)
Balance at end of period	1,952	405
Residential Real Estate Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			203,817	207,423
Individually evaluated for impairment			945	957
Loans acquired with deteriorated credit quality			35	35
Collectively evaluated for impairment			202,837	206,431
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			38	32
Collectively evaluated for impairment			1,004	1,032
Total	1,042	905	1,042	1,064
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	1,064	905
Charge-offs	(45)	0
Recoveries	0	0
Provision	23	61
Balance at end of period	1,042	966
Construction Real Estate Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			26,118	25,441
Individually evaluated for impairment			0	0
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			26,118	25,441
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			46	47
Total	47	24	46	47
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	47	24
Charge-offs	0	0
Recoveries	0	0
Provision	(1)	(10)
Balance at end of period	46	14
Consumer [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			10,508	11,005
Individually evaluated for impairment			2	0
Loans acquired with deteriorated credit quality			1	4
Collectively evaluated for impairment			10,505	11,001
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			2	0
Collectively evaluated for impairment			121	122
Total	123	102	123	122
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	122	102
Charge-offs	(28)	(15)
Recoveries	10	39
Provision	19	(30)
Balance at end of period	123	96
Other Commercial Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			59,800	58,639
Individually evaluated for impairment			5,281	5,994
Loans acquired with deteriorated credit quality			863	621
Collectively evaluated for impairment			53,656	52,024
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			195	326
Collectively evaluated for impairment			1,020	1,001
Total	1,215	1,183	1,215	1,327
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	1,327	1,183
Charge-offs	0	0
Recoveries	9	6
Provision	(121)	33
Balance at end of period	1,215	1,222
Other Agricultural Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			24,227	23,388
Individually evaluated for impairment			1,612	1,654
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			22,615	21,734
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			19	30
Collectively evaluated for impairment			287	282
Total	312	122	306	312
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	312	122
Charge-offs	(5)	0
Recoveries	0	0
Provision	(1)	3
Balance at end of period	306	125
State and Political Subdivision Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			97,441	97,514
Individually evaluated for impairment			0	0
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			97,441	97,514
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			824	833
Total	833	593	824	833
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	833	593
Charge-offs	0	0
Recoveries	0	0
Provision	(9)	73
Balance at end of period	824	666
Unallocated [Member]
Summary of allowance for loan losses into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment [Abstract]
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			232	98
Total	232	392	232	98
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period	98	392
Charge-offs	0	0
Recoveries	0	0
Provision	134	(144)
Balance at end of period	232	248
First National Bank of Fredericksburg [Member]
Changes in the accretable yield for purchased credit-impaired loans [Roll Forward]
Balance at beginning of period	389	637
Accretion	(114)	(86)
Balance at end of period	$ 275	$ 551
Loans acquired with specific evidence of deterioration in credit quality [Abstract]
Outstanding balance			6,688	6,487
Carrying amount			$ 3,601	$ 3,367

Loans, Impaired Financing Recei

Loans, Impaired Financing Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	$ 20,530		$ 20,127
Recorded Investment With No Allowance	15,050		15,031
Recorded Investment With Allowance	2,613		2,662
Total Recorded Investment	17,663		17,693
Related Allowance	404		487
Average Recorded Investment	17,350	$ 12,852
Interest Income Recognized	122	100
Interest Income Recognized Cash Basis	13	1
Real Estate Loans [Member] | Mortgages [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	949		953
Recorded Investment With No Allowance	568		570
Recorded Investment With Allowance	322		330
Total Recorded Investment	890		900
Related Allowance	28		22
Average Recorded Investment	894	391
Interest Income Recognized	3	4
Interest Income Recognized Cash Basis	0	0
Real Estate Loans [Member] | Home Equity [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	55		57
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	55		57
Total Recorded Investment	55		57
Related Allowance	10		10
Average Recorded Investment	56	60
Interest Income Recognized	1	1
Interest Income Recognized Cash Basis	0	0
Real Estate Loans [Member] | Commercial [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	8,628		7,958
Recorded Investment With No Allowance	5,937		5,697
Recorded Investment With Allowance	410		45
Total Recorded Investment	6,347		5,742
Related Allowance	47		45
Average Recorded Investment	5,793	6,179
Interest Income Recognized	24	26
Interest Income Recognized Cash Basis	3	0
Real Estate Loans [Member] | Agricultural [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	3,487		3,347
Recorded Investment With No Allowance	2,146		2,000
Recorded Investment With Allowance	1,330		1,347
Total Recorded Investment	3,476		3,347
Related Allowance	103		54
Average Recorded Investment	3,382	165
Interest Income Recognized	31	2
Interest Income Recognized Cash Basis	0	0
Real Estate Loans [Member] | Construction [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	0		0
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	0		0
Total Recorded Investment	0		0
Related Allowance	0		0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Interest Income Recognized Cash Basis	0	0
Consumer [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	2		0
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	2		0
Total Recorded Investment	2		0
Related Allowance	2		0
Average Recorded Investment	1	0
Interest Income Recognized	0	0
Interest Income Recognized Cash Basis	0	0
Other Commercial Loans [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	5,797		6,159
Recorded Investment With No Allowance	4,806		5,135
Recorded Investment With Allowance	475		859
Total Recorded Investment	5,281		5,994
Related Allowance	195		326
Average Recorded Investment	5,597	5,952
Interest Income Recognized	40	66
Interest Income Recognized Cash Basis	10	1
Other Agricultural Loans [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	1,612		1,653
Recorded Investment With No Allowance	1,593		1,629
Recorded Investment With Allowance	19		24
Total Recorded Investment	1,612		1,653
Related Allowance	19		30
Average Recorded Investment	1,627	105
Interest Income Recognized	23	1
Interest Income Recognized Cash Basis	0	0
State and Political Subdivision Loans [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	0		0
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	0		0
Total Recorded Investment	0		0
Related Allowance	0		$ 0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Interest Income Recognized Cash Basis	$ 0	$ 0

Loans, Credit Quality Indicator

Loans, Credit Quality Indicator (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable by credit exposure [Abstract]
Total	$ 214,325	$ 218,428
Minimum [Member]
Financing Receivable, Recorded Investment [Line Items]
Percentage of dollar volume of commercial loan portfolio to be reviewed	55.00%
Amount over which all new loans to be reviewed	$ 1,000
Amount over which all relationships to be reviewed	1,000
Amount which is 30 days past due to be reviewed for all aggregate loan relationships	750
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	267,097	252,577
Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	156,299	123,624
Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	26,118	25,441
Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	147,020	148,730
Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	56,797	58,693
Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	10,508	11,005
Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	59,800	58,639
Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	24,227	23,388
State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	97,441	97,514
Pass [Member]
Financing Receivable by credit exposure [Abstract]
Total	568,485	516,605
Pass [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	240,229	225,185
Pass [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	143,715	110,785
Pass [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	26,118	25,441
Pass [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	53,657	51,396
Pass [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	21,218	20,178
Pass [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	83,548	83,620
Special Mention [Member]
Financing Receivable by credit exposure [Abstract]
Total	38,522	39,124
Special Mention [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	14,732	14,045
Special Mention [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	7,835	8,231
Special Mention [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Special Mention [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,560	2,049
Special Mention [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,300	1,733
Special Mention [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	13,095	13,066
Substandard [Member]
Financing Receivable by credit exposure [Abstract]
Total	23,890	25,365
Substandard [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	12,136	13,347
Substandard [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	4,749	4,608
Substandard [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Substandard [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	4,498	5,105
Substandard [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,709	1,477
Substandard [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	798	828
Doubtful [Member]
Financing Receivable by credit exposure [Abstract]
Total	85	89
Doubtful [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Doubtful [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Doubtful [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Doubtful [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	85	89
Doubtful [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Doubtful [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Loss [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
Internally Assigned Grade [Member]
Financing Receivable by credit exposure [Abstract]
Total	630,982	581,183
Performing [Member]
Financing Receivable by credit exposure [Abstract]
Total	212,407	216,377
Performing [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	145,446	147,047
Performing [Member] | Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	56,566	58,438
Performing [Member] | Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	10,395	10,892
Nonperforming [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,882	2,012
Nonperforming [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,539	1,648
Nonperforming [Member] | Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	231	255
Nonperforming [Member] | Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	112	109
PCI [Member]
Financing Receivable by credit exposure [Abstract]
Total	36	39
PCI [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	35	35
PCI [Member] | Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	0
PCI [Member] | Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	$ 1	$ 4

Loans, Past Due (Details)

Loans, Past Due (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Recorded investment of past due [Abstract]
Total Past Due	$ 12,054	$ 14,133
Current	829,652	782,111
PCI	3,601	3,367
Total financing receivables	845,307	799,611
90 Days or Greater and Accruing	1,015	405
Financing receivables on nonaccrual status [Abstract]
Total Past Due And Non-accrual	8,491	10,729
Current And Non-accrual	1,991	725
PCI Loans considered non accrual	0	0
Financing receivable nonaccrual status	10,482	11,454
Financing receivables on accrual status [Abstract]
Total Past Due And Still Accruing	3,563	3,404
Current And Still Accruing	827,661	781,386
PCI Loans still accruing	3,601	3,367
Total Financing Receivables And Still Accruing	$ 834,825	788,157
Minimum [Member]
Financing receivables on nonaccrual status [Abstract]
Period of past due after which loans considered as non accrual	90 days
30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	$ 1,819	3,024
Financing receivables on nonaccrual status [Abstract]
Total Past Due And Non-accrual	77	172
Financing receivables on accrual status [Abstract]
Total Past Due And Still Accruing	1,742	2,852
60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	816	252
Financing receivables on nonaccrual status [Abstract]
Total Past Due And Non-accrual	10	105
Financing receivables on accrual status [Abstract]
Total Past Due And Still Accruing	806	147
90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	9,419	10,857
Financing receivables on nonaccrual status [Abstract]
Total Past Due And Non-accrual	8,404	10,452
Financing receivables on accrual status [Abstract]
Total Past Due And Still Accruing	1,015	405
Commercial [Member]
Recorded investment of past due [Abstract]
Total financing receivables	267,097	252,577
Agricultural [Member]
Recorded investment of past due [Abstract]
Total financing receivables	156,299	123,624
Real Estate Loans [Member] | Mortgages [Member]
Recorded investment of past due [Abstract]
Total Past Due	1,352	1,775
Current	145,633	146,920
PCI	35	35
Total financing receivables	147,020	148,730
90 Days or Greater and Accruing	230	173
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	1,309	1,475
Real Estate Loans [Member] | Mortgages [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	315	630
Real Estate Loans [Member] | Mortgages [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	49	36
Real Estate Loans [Member] | Mortgages [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	988	1,109
Real Estate Loans [Member] | Home Equity [Member]
Recorded investment of past due [Abstract]
Total Past Due	429	642
Current	56,368	58,051
PCI	0	0
Total financing receivables	56,797	58,693
90 Days or Greater and Accruing	146	160
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	85	95
Real Estate Loans [Member] | Home Equity [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	156	384
Real Estate Loans [Member] | Home Equity [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	85	49
Real Estate Loans [Member] | Home Equity [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	188	209
Real Estate Loans [Member] | Commercial [Member]
Recorded investment of past due [Abstract]
Total Past Due	4,919	6,117
Current	260,213	244,491
PCI	1,965	1,969
Total financing receivables	267,097	252,577
90 Days or Greater and Accruing	58	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	4,448	4,445
Real Estate Loans [Member] | Commercial [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	301	1,757
Real Estate Loans [Member] | Commercial [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	645	58
Real Estate Loans [Member] | Commercial [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	3,973	4,302
Real Estate Loans [Member] | Agricultural [Member]
Recorded investment of past due [Abstract]
Total Past Due	1,360	1,145
Current	154,202	121,741
PCI	737	738
Total financing receivables	156,299	123,624
90 Days or Greater and Accruing	334	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	1,322	1,340
Real Estate Loans [Member] | Agricultural [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	22	0
Real Estate Loans [Member] | Agricultural [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Agricultural [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	1,338	1,145
Real Estate Loans [Member] | Construction [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	0
Current	26,118	25,441
PCI	0	0
Total financing receivables	26,118	25,441
90 Days or Greater and Accruing	0	0
Real Estate Loans [Member] | Construction [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Construction [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Construction [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	0
Consumer [Member]
Recorded investment of past due [Abstract]
Total Past Due	235	238
Current	10,272	10,763
PCI	1	4
Total financing receivables	10,508	11,005
90 Days or Greater and Accruing	22	67
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	90	42
Consumer [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	90	115
Consumer [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	35	40
Consumer [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	110	83
Other Commercial Loans [Member]
Recorded investment of past due [Abstract]
Total Past Due	2,760	4,134
Current	56,177	53,884
PCI	863	621
Total financing receivables	59,800	58,639
90 Days or Greater and Accruing	0	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	3,228	4,057
Other Commercial Loans [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	161	95
Other Commercial Loans [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	2	35
Other Commercial Loans [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	2,597	4,004
Other Agricultural Loans [Member]
Recorded investment of past due [Abstract]
Total Past Due	999	82
Current	23,228	23,306
PCI	0	0
Total financing receivables	24,227	23,388
90 Days or Greater and Accruing	225	5
Other Agricultural Loans [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	774	43
Other Agricultural Loans [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	34
Other Agricultural Loans [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	225	5
State and Political Subdivision Loans [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	0
Current	97,441	97,514
PCI	0	0
Total financing receivables	97,441	97,514
90 Days or Greater and Accruing	0	0
State and Political Subdivision Loans [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	0
State and Political Subdivision Loans [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total Past Due	0	0
State and Political Subdivision Loans [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total Past Due	$ 0	$ 0

Loans, Trouble Debt Restructuri

Loans, Trouble Debt Restructuring (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Contract	Mar. 31, 2016Contract	Dec. 31, 2016USD ($)
Loans [Abstract]
Reserves of allowance for loan losses	$ 27		$ 29
Financing receivable modifications [Abstract]
Number of contract, subsequently defaults | Contract	0	0
Foreclosed assets held for sale [Abstract]
Foreclosed assets held for sale	$ 1,248		$ 1,036
Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0
Pre-modification Outstanding Recorded Investment	$ 0
Post-Modification Outstanding Recorded Investment	$ 0
Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	2
Pre-modification Outstanding Recorded Investment	$ 703
Post-Modification Outstanding Recorded Investment	$ 703
Real Estate Loans [Member] | Commercial [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0
Pre-modification Outstanding Recorded Investment	$ 0
Post-Modification Outstanding Recorded Investment	$ 0
Real Estate Loans [Member] | Commercial [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	2
Pre-modification Outstanding Recorded Investment	$ 703
Post-Modification Outstanding Recorded Investment	703
Consumer Residential Mortgages [Member]
Foreclosed assets held for sale [Abstract]
Foreclosed assets held for sale	265
Formal foreclosure proceedings on potential foreclosure assets	$ 1,422

Goodwill and Other Intangible37

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Amortized intangible assets [Abstract]
Gross carrying value	[1]	$ 3,275		$ 3,237
Accumulated amortization	[1]	(1,262)		(1,141)
Net carrying value	[1]	2,012		2,096
Unamortized intangible assets [Abstract]
Goodwill		21,089		21,089
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		123	$ 128
Estimated Amortization Expense [Abstract]
Remaining 2,017		360
2,018		416
2,019		355
2,020		268
2,021		215
MSRs [Member]
Amortized intangible assets [Abstract]
Gross carrying value	[1]	1,509		1,471
Accumulated amortization	[1]	(833)		(787)
Net carrying value	[1]	676		684
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		47	46
Estimated Amortization Expense [Abstract]
Remaining 2,017		138
2,018		150
2,019		119
2,020		91
2,021		68
Core Deposit Intangibles [Member]
Amortized intangible assets [Abstract]
Gross carrying value	[1]	1,641		1,641
Accumulated amortization	[1]	(388)		(320)
Net carrying value	[1]	1,253		1,321
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		68	74
Estimated Amortization Expense [Abstract]
Remaining 2,017		198
2,018		236
2,019		206
2,020		177
2,021		147
Covenant not to Compete [Member]
Amortized intangible assets [Abstract]
Gross carrying value	[1]	125		125
Accumulated amortization	[1]	(42)		(34)
Net carrying value	[1]	83		$ 91
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		8	$ 8
Estimated Amortization Expense [Abstract]
Remaining 2,017		23
2,018		30
2,019		30
2,020		0
2,021		$ 0
[1]	Excludes fully amortized intangible assets

Federal Home Loan Bank Stock (D

Federal Home Loan Bank Stock (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Federal Home Loan Bank Stock [Abstract]
Federal home loan bank stock	$ 3,213,600	$ 4,542,000
FHLB Stock, at par value (in dollars per share)	$ 100

Repurchase Agreements (Details)

Repurchase Agreements (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	$ 18,217	$ 18,177
Total liability recognized for repurchase agreements	15,962	14,307
U.S. Agency Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	18,217	18,177
Overnight and Continuous [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	16,157	16,118
Overnight and Continuous [Member] | U.S. Agency Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	16,157	16,118
Up to 30 Days [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	0	0
Up to 30 Days [Member] | U.S. Agency Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	0	0
30 - 90 Days [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	0	0
30 - 90 Days [Member] | U.S. Agency Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	0	0
Greater than 90 Days [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	2,060	2,059
Greater than 90 Days [Member] | U.S. Agency Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged	$ 2,060	$ 2,059

Employee Benefit Plans, Noncont

Employee Benefit Plans, Noncontributory Defined Benefit Pension Plan (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Plan	Mar. 31, 2016USD ($)
Employee Benefit Plans [Abstract]
Number of plans | Plan	2
Pension Plan [Member]
Components of net periodic benefit cost [Abstract]
Service cost	$ 91	$ 90
Interest cost	167	172
Expected return on plan assets	(274)	(260)
Net amortization and deferral	60	61
Net periodic benefit cost	44	$ 63
Employer contributions	$ 520

Employee Benefit Plans, Defined

Employee Benefit Plans, Defined Contribution Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Defined Contribution Plan [Abstract]
Employer contribution to 401 (k) defined contribution plan	$ 99	$ 83

Employee Benefit Plans, Directo

Employee Benefit Plans, Directors' Deferred Compensation Plan (Details) - Director [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Deferred compensation liability	$ 907		$ 940
Deferred interest expense	$ 5	$ 4

Employee Benefit Plans, Restric

Employee Benefit Plans, Restricted Stock Plan (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	150,000
Number of shares available for grant (in shares)	145,740
Shares [Roll Forward]
Outstanding, beginning of period (in shares)	8,471
Granted (in shares)	150
Vested (in shares)	(162)
Outstanding, end of period (in shares)	8,459
Weighted Average Market Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 49.10
Granted (in dollars per share)	51.13
Vested (in dollars per share)	(51.24)
Outstanding, end of period (in dollars per share)	$ 49.10
Additional General Disclosures [Abstract]
Share-based compensation expense	$ 50	$ 47
Compensation cost related to nonvested awards that has not yet been recognized	$ 415
Period over which compensation cost is expected to be recognized	3 years

Employee Benefit Plans, Other P

Employee Benefit Plans, Other Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Supplemental Executive Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Obligation included in other liabilities	$ 1,488		$ 1,460
Cost recognized	28	$ 30
Continuation of Life Insurance Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Obligation included in other liabilities	571		569
Salary Continuation Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Obligation included in other liabilities	720		$ 720
Cost recognized	$ 13	$ 16

Accumulated Comprehensive Inc45

Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		$ 123,268
Other comprehensive income (loss) before reclassifications (net of tax)		46	$ 1,117
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)		(75)	22
Other comprehensive income (loss), net of tax		(29)	1,139
Ending Balance		124,956
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance		(1,392)	(236)
Ending Balance		(1,421)	903
Unrealized Gain (Loss) on Available for Sale Securities [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	[1]	1,306	2,204
Other comprehensive income (loss) before reclassifications (net of tax)	[1]	46	1,117
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)	[1]	(114)	(18)
Other comprehensive income (loss), net of tax	[1]	(68)	1,099
Ending Balance	[1]	1,238	3,303
Defined Benefit Pension Items [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	[1]	(2,698)	(2,440)
Other comprehensive income (loss) before reclassifications (net of tax)	[1]	0	0
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)	[1]	39	40
Other comprehensive income (loss), net of tax	[1]	39	40
Ending Balance	[1]	$ (2,659)	$ (2,400)
[1]	Amounts in parentheses indicate debits to the Consolidated Balance Sheet

Accumulated Comprehensive Inc46

Accumulated Comprehensive Income, Reclassification (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment securities gains, net		$ 172	$ 27
Salaries and employee benefits		(4,319)	(3,882)
Provision for income taxes		(923)	(791)
NET INCOME		3,303	3,283
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
NET INCOME	[1]	75	(22)
Unrealized Gains and Losses on Available for Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment securities gains, net	[1]	172	27
Provision for income taxes	[1]	(58)	(9)
NET INCOME	[1]	114	18
Defined Benefit Pension Items [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	[1]	(60)	(60)
Provision for income taxes	[1]	21	20
NET INCOME	[1]	$ (39)	$ (40)
[1]	Amounts in parentheses indicate expenses and other amounts indicate income on the Consolidated Statement of Income

Fair Value Measurements, Measur

Fair Value Measurements, Measured On A Recurring And Nonrecurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired loans, estimated selling cost	$ 185	$ 188
Recurring [Member]
Securities available for sale [Abstract]
U.S. Agency securities	147,658	170,414
U.S. Treasuries securities		3,000
Obligations of state and political subdivisions	88,243	969,262
Corporate obligations	3,095	3,050
Mortgage-backed securities in government sponsored entities	41,118	37,728
Equity securities in financial institutions	1,659	2,899
Recurring [Member] | Level I [Member]
Securities available for sale [Abstract]
U.S. Agency securities	0	0
U.S. Treasuries securities		3,000
Obligations of state and political subdivisions	0	0
Corporate obligations	0	0
Mortgage-backed securities in government sponsored entities	0	0
Equity securities in financial institutions	1,659	2,899
Recurring [Member] | Level II [Member]
Securities available for sale [Abstract]
U.S. Agency securities	147,658	170,414
U.S. Treasuries securities		0
Obligations of state and political subdivisions	88,243	96,926
Corporate obligations	3,095	3,050
Mortgage-backed securities in government sponsored entities	41,118	37,728
Equity securities in financial institutions	0	0
Recurring [Member] | Level III [Member]
Securities available for sale [Abstract]
U.S. Agency securities	0	0
U.S. Treasuries securities		0
Obligations of state and political subdivisions	0	0
Corporate obligations	0	0
Mortgage-backed securities in government sponsored entities	0	0
Equity securities in financial institutions	0	0
Nonrecurring [Member]
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired Loans	2,064	2,033
Other real estate owned	1,074	839
Nonrecurring [Member] | Level I [Member]
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired Loans	0	0
Other real estate owned	0	0
Nonrecurring [Member] | Level II [Member]
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired Loans	0	0
Other real estate owned	0	0
Nonrecurring [Member] | Level III [Member]
Fair value assets and liabilities measured on non-recurring basis [Abstract]
Impaired Loans	2,064	2,033
Other real estate owned	$ 1,074	$ 839

Fair Value Measurements, Quanti

Fair Value Measurements, Quantitative Information (Details) - Appraised Collateral Values [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 2,064	$ 2,033
Valuation Technique(s)	Appraised Collateral Values	Appraised Collateral Values
Impaired Loans [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount to appraised value	0.00%	0.00%
Selling costs	5.00%	5.00%
Holding period	6 months	6 months
Impaired Loans [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount to appraised value	90.00%	65.00%
Selling costs	10.00%	9.00%
Holding period	12 months	12 months
Impaired Loans [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount to appraised value	28.73%	28.98%
Selling costs	7.55%	7.56%
Holding period	12 months	11 months
Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,074	$ 839
Valuation Technique(s)	Appraised Collateral Values	Appraised Collateral Values
Other Real Estate Owned [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount to appraised value	12.00%	10.00%
Other Real Estate Owned [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount to appraised value	47.00%	67.00%
Other Real Estate Owned [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount to appraised value	21.51%	25.00%

Fair Value Measurements, By Bal

Fair Value Measurements, By Balance Sheet Grouping (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Financial assets [Abstract]
Interest bearing time deposits with other banks	$ 6,708	$ 6,955
Available-for-sale securities	$ 281,773	314,017
Financial liabilities [Abstract]
Consideration period for recognition of cash and due from banks	90 days
Consideration period for recognition of accrued interest receivable and payable	90 days
Level I [Member]
Financial assets [Abstract]
Cash and due from banks	$ 14,797	17,754
Interest bearing time deposits with other banks	0	0
Available-for-sale securities	1,659	5,899
Loans held for sale	1,581	1,827
Net loans	0	0
Bank owned life insurance	26,389	26,223
Regulatory stock	3,977	5,306
Accrued interest receivable	3,618	4,089
Financial liabilities [Abstract]
Deposits	775,628	740,889
Borrowed funds	6,849	41,330
Accrued interest payable	612	720
Level II [Member]
Financial assets [Abstract]
Cash and due from banks	0	0
Interest bearing time deposits with other banks	0	0
Available-for-sale securities	280,114	308,118
Net loans	0	0
Bank owned life insurance	0	0
Regulatory stock	0	0
Accrued interest receivable	0	0
Financial liabilities [Abstract]
Deposits	0	0
Borrowed funds	0	0
Accrued interest payable	0	0
Level III [Member]
Financial assets [Abstract]
Cash and due from banks	0	0
Interest bearing time deposits with other banks	6,712	6,960
Available-for-sale securities		0
Net loans	838,299	797,184
Bank owned life insurance	0	0
Regulatory stock	0	0
Accrued interest receivable	0	0
Financial liabilities [Abstract]
Deposits	260,435	263,183
Borrowed funds	38,255	36,095
Accrued interest payable	0
Carrying Amount [Member]
Financial assets [Abstract]
Cash and due from banks	14,797	17,754
Interest bearing time deposits with other banks	6,708	6,955
Available-for-sale securities	281,773	314,017
Loans held for sale	1,581	1,827
Net loans	835,902	790,725
Bank owned life insurance	26,389	26,223
Regulatory stock	3,977	5,306
Accrued interest receivable	3,618	4,089
Financial liabilities [Abstract]
Deposits	1,037,609	1,005,503
Borrowed funds	46,836	79,662
Accrued interest payable	612	720
Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	14,797	17,754
Interest bearing time deposits with other banks	6,712	6,960
Available-for-sale securities	281,773	314,017
Loans held for sale	1,581	1,827
Net loans	838,299	797,184
Bank owned life insurance	26,389	26,223
Regulatory stock	3,977	5,306
Accrued interest receivable	3,618	4,089
Financial liabilities [Abstract]
Deposits	1,036,063	1,004,072
Borrowed funds	45,104	77,425
Accrued interest payable	$ 612	$ 720