Citizens Financial Services (CZFS) 10-K 8 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 26, 2018	Jun. 30, 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 Public Float			$ 166,105,387
Entity Common Stock, Shares Outstanding		3,484,305
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017

Consolidated Balance Sheet

Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Cash and cash equivalents:
Noninterest-bearing	$ 16,347	$ 16,854
Interest-bearing	2,170	900
Total cash and cash equivalents	18,517	17,754
Interest bearing time deposits with other banks	10,283	6,955
Available-for-sale securities	254,782	314,017
Loans held for sale	1,439	1,827
Loans (net of allowance for loan losses: 2017, $11,190; 2016, $8,886)	989,335	790,725
Premises and equipment	16,523	17,030
Accrued interest receivable	4,196	4,089
Goodwill	23,296	21,089
Bank owned life insurance	26,883	26,223
Other intangibles	1,953	2,096
Investment sale receivable	0	7,759
Other assets	14,679	13,454
TOTAL ASSETS	1,361,886	1,223,018
Deposits:
Noninterest-bearing	171,840	147,425
Interest-bearing	933,103	858,078
Total deposits	1,104,943	1,005,503
Borrowed funds	114,664	79,662
Accrued interest payable	897	720
Other liabilities	12,371	13,865
TOTAL LIABILITIES	1,232,875	1,099,750
STOCKHOLDERS' EQUITY:
Preferred Stock $1.00 par value; authorized 3,000,000 shares 2017 and 2016; none issued in 2017 or 2016	0	0
Common Stock $1.00 par value; authorized 15,000,000 shares 2017 and 2016; issued 3,869,939 and 3,704,375 shares in 2017 and 2016, respectively	3,870	3,704
Additional paid-in capital	51,108	42,250
Retained earnings	89,982	91,278
Accumulated other comprehensive loss	(3,398)	(1,392)
Treasury stock, at cost: 383,065 and 384,671 shares for 2017 and 2016, respectively	(12,551)	(12,572)
TOTAL STOCKHOLDERS' EQUITY	129,011	123,268
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,361,886	$ 1,223,018

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS:
Loans, allowance for loan losses	$ 11,190	$ 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)	3,869,939	3,704,375
Treasury stock, shares (in shares)	383,065	384,671

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
INTEREST AND DIVIDEND INCOME:
Interest and fees on loans	$ 42,127	$ 35,844	$ 29,039
Interest-bearing deposits with banks	186	221	142
Investment securities:
Taxable	3,095	3,687	3,102
Nontaxable	2,414	2,970	3,152
Dividends	271	283	218
TOTAL INTEREST AND DIVIDEND INCOME	48,093	43,005	35,653
INTEREST EXPENSE:
Deposits	4,625	4,247	4,113
Borrowed funds	1,214	794	707
TOTAL INTEREST EXPENSE	5,839	5,041	4,820
NET INTEREST INCOME	42,254	37,964	30,833
Provision for loan losses	2,540	1,520	480
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	39,714	36,444	30,353
NON-INTEREST INCOME:
Service charges	4,456	4,461	4,126
Trust	755	693	673
Brokerage and insurance	635	766	720
Investment securities gains, net	1,035	255	429
Gains on loans sold	578	449	404
Earnings on bank owned life insurance	660	688	628
Other	537	587	443
TOTAL NON-INTEREST INCOME	8,656	7,899	7,423
NON-INTEREST EXPENSES:
Salaries and employee benefits	17,456	16,410	12,504
Occupancy	1,988	1,900	1,424
Furniture and equipment	603	644	506
Professional fees	1,039	1,094	846
Federal depository insurance	385	572	464
Pennsylvania shares tax	705	690	713
Amortization of intangibles	297	327	0
Merger and acquisition	165	0	1,103
ORE expenses	655	389	969
Other	6,021	6,645	4,900
TOTAL NON-INTEREST EXPENSES	29,314	28,671	23,429
Income before provision for income taxes	19,056	15,672	14,347
Provision for income taxes	6,031	3,034	2,721
NET INCOME	$ 13,025	$ 12,638	$ 11,626
PER COMMON SHARE DATA:
NET INCOME - BASIC (in dollars per share)	$ 3.74	$ 3.60	$ 3.60
NET INCOME - DILUTED (in dollars per share)	3.74	3.60	3.60
CASH DIVIDENDS PER SHARE (in dollars per share)	$ 1.67	$ 1.58	$ 1.63
Number of shares used in computation - basic (in shares)	3,481,366	3,507,497	3,229,470
Number of shares used in computation - diluted (in shares)	3,483,090	3,509,053	3,230,830

Consolidated Statement of Chang

Consolidated Statement of Changes in Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statement of Changes in Comprehensive Income [Abstract]
Net income	$ 13,025	$ 12,638	$ 11,626
Securities available for sale
Unrealized holding loss during the period	(1,283)	(1,105)	(920)
Income tax benefit	436	375	314
Securities available for sale	(847)	(730)	(606)
Reclassification adjustment for (gains) losses included in income	(1,035)	(255)	(429)
Income tax benefit	352	87	146
Reclassification	(683)	(168)	(283)
Change in unrecognized pension costs	127	(391)	(172)
Income tax benefit	(44)	133	58
Pension costs	83	(258)	(114)
Net other comprehensive income	(1,447)	(1,156)	(1,003)
Comprehensive income	$ 11,578	$ 11,482	$ 10,623

Consolidated Statement of Chan6

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2014	$ 3,335	$ 25,150	$ 79,512	$ 767	$ (8,236)	$ 100,528
Balance (in shares) at Dec. 31, 2014	3,335,236
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			11,626			11,626
Net other comprehensive income				(1,003)		(1,003)
Stock issued for acquisition	$ 337	15,647	0			15,984
Stock issued for acquisition (in shares)	336,515
Purchase of treasury stock					(2,455)	(2,455)
Restricted stock, executive and Board of Director awards		(256)			308	52
Restricted stock vesting		179				179
Forfeited restricted stock		7			(7)	0
Cash dividend reinvestment paid from treasury stock		(12)	(197)		209	0
Cash dividends			(5,151)			(5,151)
Balance at Dec. 31, 2015	$ 3,672	40,715	85,790	(236)	(10,181)	119,760
Balance (in shares) at Dec. 31, 2015	3,671,751
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			12,638			12,638
Net other comprehensive income				(1,156)		(1,156)
Stock dividend	$ 32	1,542	(1,574)			0
Stock dividend (in shares)	32,624
Purchase of treasury stock					(3,227)	(3,227)
Restricted stock, executive and Board of Director awards		(197)			288	91
Restricted stock vesting		184				184
Sale of treasury stock		(1)			60	59
Forfeited restricted stock		4			(4)	0
Cash dividend reinvestment paid from treasury stock		3	(495)		492	0
Cash dividends			(5,081)			(5,081)
Balance at Dec. 31, 2016	$ 3,704	42,250	91,278	(1,392)	(12,572)	123,268
Balance (in shares) at Dec. 31, 2016	3,704,375
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			13,025			13,025
Net other comprehensive income				(1,447)		(1,447)
Stock dividend	$ 166	8,857	(9,023)			0
Stock dividend (in shares)	165,564
Purchase of treasury stock					(979)	(979)
Restricted stock, executive and Board of Director awards		(224)			296	72
Restricted stock vesting		206				206
Sale of treasury stock		0			43	43
Forfeited restricted stock		2			(2)	0
Reclassification of certain income tax effects from accumulated other comprehensive income			559	(559)		0
Cash dividend reinvestment paid from treasury stock		17	(680)		663	0
Cash dividends			(5,177)			(5,177)
Balance at Dec. 31, 2017	$ 3,870	$ 51,108	$ 89,982	$ (3,398)	$ (12,551)	$ 129,011
Balance (in shares) at Dec. 31, 2017	3,869,939

Consolidated Statement of Chan7

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statement of Changes in Stockholders' Equity [Abstract]
Purchase of treasury stock (in shares)		17,990	66,110	49,465
Cash dividends (in dollars per share)		$ 1.67	$ 1.58	$ 1.63
Stock dividend percentage	5.00%
Dividend paid date		Jun. 30, 2017

Consolidated Statement of Cash

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities:
Net income	$ 2,604	$ 3,171	$ 13,025	$ 12,638	$ 11,626
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	800	750	2,540	1,520	480
Depreciation and amortization			200	320	464
Amortization and accretion on investment securities, net			1,441	2,302	2,057
Deferred income taxes			1,448	362	(192)
Investment securities gains, net	(831)	(100)	(1,035)	(255)	(429)
Earnings on bank owned life insurance			(660)	(688)	(628)
Stock awards			278	284	179
Originations of loans held for sale			(25,305)	(22,237)	(18,945)
Proceeds from sales of loans held for sale			26,086	21,462	19,243
Realized gains on loans sold			(578)	(449)	(404)
(Increase) decrease in accrued interest receivable			(34)	122	(285)
Increase (decrease) in accrued interest payable			147	(14)	(36)
Other, net			(1,814)	827	(319)
Net cash provided by operating activities			15,739	16,194	12,811
Available-for-sale securities:
Proceeds from sales of available-for-sale securities			58,177	22,372	30,464
Proceeds from maturity and principal repayments of securities			60,081	67,782	48,103
Purchase of securities			(54,003)	(55,600)	(111,304)
Proceeds from redemption of Regulatory Stock			7,425	1,556	4,476
Purchase of Regulatory Stock			(8,903)	(3,403)	(3,879)
Net increase in loans			(161,127)	(103,915)	(25,981)
Purchase of interest bearing time deposits			(7,301)	0	(500)
Proceeds from matured interest bearing time deposits with other banks			744	744	0
Proceeds from sale of interest bearing time deposits with other banks			3,243	0	0
Purchase of premises, equipment and software			(208)	(587)	(776)
Proceeds from sale of premises and equipment			0	0	0
Proceeds from sale of foreclosed assets held for sale			846	973	565
Acquisition, net of cash paid			(4,399)	0	77,895
Net cash used in investing activities			(105,425)	(70,078)	19,063
Cash Flows from Financing Activities:
Net (decrease) increase in deposits			61,560	17,472	(11,132)
Proceeds from long-term borrowings			9	543	5,291
Repayments of long-term borrowings			(2,000)	(534)	(700)
Net increase (decrease) in short-term borrowed funds			36,993	38,022	(4,759)
Purchase of treasury stock			(979)	(3,227)	(2,455)
Purchase of restricted stock			0	0	(7)
Reissuance of treasury stock to employee stock purchase plan			43	59	0
Dividends paid			(5,177)	(5,081)	(5,151)
Net cash provided by (used in) financing activities			90,449	47,254	(18,913)
Net increase (decrease) in cash and cash equivalents			763	(6,630)	12,961
Cash and Cash Equivalents at Beginning of Year			17,754	24,384	11,423
Cash and Cash Equivalents at End of Year	18,517	17,754	18,517	17,754	24,384
Supplemental Disclosures of Cash Flow Information:
Interest paid			5,662	5,055	4,841
Income taxes paid			4,550	2,475	3,375
Non-cash activities:
Stock dividend			9,023	1,574	0
Real estate acquired in settlement of loans			911	599	323
Investments sold and not settled included in other assets			0	7,759	0
Non-cash assets acquired
Goodwill	23,296	21,089	23,296	21,089
First National Bank of Fredericksburg [Member]
Non-cash assets acquired
Available-for-sale securities	0	0	0	0	23,831
Interest bearing time deposits with other banks	0	0	0	0	1,236
Loans	39,847	0	39,847	0	115,211
Premises and equipment	86	0	86	0	4,743
Accrued interest receivable	74	0	74	0	282
Bank-owned life insurance	0	0	0	0	4,598
Intangibles	145	0	145	0	1,981
Deferred tax asset	0	0	0	0	2,979
Other assets	0	0	0	0	2,332
Goodwill	2,207	0	2,207	0	10,833
Total Non-cash assets acquired	42,359	0	42,359	0	168,026
Liabilities assumed
Noninterest-bearing deposits	37,880	0	37,880	0	71,971
Interest-bearing deposits	0	0	0	0	153,259
Accrued interest payable	29	0	29	0	14
Other liabilities	51	0	51	0	4,693
Total liabilities assumed	37,960	0	37,960	0	229,937
Net non-cash assets (liabilities) acquired	4,399	0	4,399	0	(61,911)
Cash and cash equivalents acquired	$ 154	$ 0	$ 154	$ 0	$ 83,514

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business and Organization Citizens Financial Services, Inc. (individually and collectively, the "Company") is headquartered in Mansfield, Pennsylvania, and provides a full range of banking and related services through its wholly owned subsidiary, First Citizens Community Bank (the "Bank"), and its wholly owned subsidiary, First Citizens Insurance Agency, Inc. On December 11, 2015, the Company completed its acquisition of The First National Bank of Fredericksburg (FNB). On December 8, 2017, the Bank completed its acquisition of the S&T branch in State College (State College). As of December 31, 2017, the Bank operates twenty six full-service banking branches in Potter, Tioga, Bradford, Clinton, Lebanon, Lancaster, Berks, Schuylkill and Centre counties, Pennsylvania and Allegany County, New York, and a limited branch office in both Union and Lancaster counties, Pennsylvania. The Bank also provides trust services, including the administration of trusts and estates, retirement plans, and other employee benefit plans, along with a brokerage division that provides a comprehensive menu of investment services. The Bank serves individual and corporate customers and is subject to competition from other financial institutions and intermediaries with respect to these services. The Company and Bank are supervised by the Board of Governors of the Federal Reserve System, while the Bank is subject to additional regulation and supervision by the Pennsylvania Department of Banking. A summary of significant accounting and reporting policies applied in the presentation of the accompanying financial statements follows: Basis of Presentation The financial statements are consolidated to include the accounts of the Company and its subsidiary, First Citizens Community Bank, and its subsidiary, First Citizens Insurance Agency, Inc. These statements have been prepared in accordance with U.S. generally accepted accounting principles. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. Use of Estimates In preparing the financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to determination of the allowance for loan losses, pension plans and deferred tax assets and liabilities. Operating Segments An operating segment is defined as a component of an enterprise that engages in business activities that generates revenue and incurs expense, and the operating results of which are reviewed by the chief operating decision maker in the determination of resource allocation and performance. While the Company's chief decision makers monitor the revenue streams of the various Company's products, services and regions, operations are managed and financial performance is evaluated on a Company-wide basis. Consistent with our internal reporting, the Company's business activities are reported as one segment, which is community banking. Cash and Cash Equivalents Cash equivalents include cash on hand, deposits in banks and interest-earning deposits. Interest-earning deposits with original maturities of 90 days or less are considered cash equivalents. Net cash flows are reported for loans, deposits and short term borrowing transactions. Interest bearing time deposits with other banks are not included with cash and cash equivalents as the original maturities were greater than 90 days. Investment Securities Investment securities at the time of purchase are classified as one of the three following types: Held-to-Maturity Securities Trading Securities Available-for-Sale Securities The amortized cost of investment in debt securities is adjusted for amortization of premiums and accretion of discounts, computed by a method that results in a level yield. Gains and losses on the sale of investment securities are computed on the basis of specific identification of the adjusted cost of each security. Securities are periodically reviewed for other-than-temporary impairment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statement of Income. Common stock of the Federal Reserve Bank, Federal Home Loan Bank of Pittsburgh (FHLB) and correspondent banks represent ownership in institutions which are wholly owned by other financial institutions. These equity securities are accounted for at cost and are classified as other assets. The fair value of investments, except certain state and municipal securities, is based on bid prices published in financial newspapers or bid quotations received from securities dealers. The fair value of certain state and municipal securities is not readily available through market sources other than dealer quotations, so fair value is based on quoted market prices of similar instruments, adjusted for differences between the quoted instruments and the instruments being valued. Loans Held for Sale Certain newly originated fixed-rate residential mortgage loans are classified as held for sale, because it is management's intent to sell these residential mortgage loans. The residential mortgage loans held for sale are carried at the lower of aggregate cost or market value. Loans Interest on all loans is recognized on the accrual basis based upon the principal amount outstanding. The accrual of interest income on loans is discontinued when, in the opinion of management, doubt exists as to the ability to collect such interest. Payments received on non-accrual loans are applied to the outstanding principal balance or recorded as interest income, depending upon our assessment of our ultimate ability to collect principal and interest. Loans are returned to the accrual status when factors indicating doubtful collectability cease to exist. The Company recognizes nonrefundable loan origination fees and certain direct loan origination costs over the life of the related loan as an adjustment of loan yield using the interest method. Allowance for Loan Losses The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses which is charged to operations. The provision is based upon management's periodic evaluation of individual loans, the overall risk characteristics of the various portfolio segments, past experience with losses, the impact of economic conditions on borrowers, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses are particularly susceptible to significant change in the near term. Impaired loans are other commercial, other agricultural, municipal, agricultural real estate, commercial real estate loans and certain residential mortgages cross collateralized with commercial relationships for which it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Company individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of "impaired loans" is not the same as the definition of "non-accrual loans," although the two categories overlap. The Company may choose to place a loan on non-accrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial, agricultural, municipal or commercial real estate loan. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of impaired loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value; or, as a practical expedient in the case of a collateral dependent loan, the difference between the fair value of the collateral and the recorded amount of the loans. Mortgage loans on one to four family properties and all consumer loans are large groups of smaller balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which is defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the borrower's prior payment record, and the amount of shortfall in relation to the principal and interest owed. The Company allocates the allowance based on the factors described below, which conform to the Company's loan classification policy. In reviewing risk within the Bank's loan portfolio, management has determined there to be several different risk categories within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) residential real estate loans; (ii) commercial real estate (iii) agricultural real estate loans; (iv) construction; (v) consumer loans; (vi) other commercial loans (vii) other agricultural loans and (viii) 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 for each risk category 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, 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 Bank'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 / CPI § 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 · Any change in the level of board oversight The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses. Loan Charge-off Policies Consumer loans are generally fully or partially charged down to the fair value of collateral securing the asset when the loan is 180 days past due for open-end loans or 120 days past due for closed-end loans unless the loan is well secured and in the process of collection. All other loans are generally charged down to the net realizable value when the loan is 90 days past due. Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a Troubled Debt Restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate allowance for loans that are identified as impaired through a TDR. TDRs are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Purchased Credit Impaired Loans The Company purchased loans in connection with its acquisition of FNB in 2015 and its acquisition of the State College branch in 2017, some of which showed evidence of credit deterioration as of the acquisition since origination. These purchased credit impaired (PCI) loans were recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Over the life of the loan, expected cash flows continue to be estimated. If this subsequent estimated indicated that the present value of expected cash flows is less than the carrying amount, a charge to the allowance for loan loss is made through a provision. If the estimate indicates that the present value of the expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Such purchased credit impaired loans are accounted for individually, and the Company estimates the amount and timing of expected cash flows for each loan. The expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan's contractual principal and interest over expected cash flows is not amortized over the remaining life of the loan (nonaccretable difference). For loans purchased that did not show evidence of credit deterioration, the difference between the fair value of the loan at the acquisition date and the loan's face value is being amortized as a yield adjustment over the estimated remaining life of the loan using the effective interest method. Foreclosed Assets Held For Sale Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell. Prior to foreclosure, as the value of the underlying loan is written down to fair market value of the real estate or other assets to be acquired by a charge to the allowance for loan losses, if necessary. Any subsequent write-downs are charged against operating expenses. Operating expenses of such properties, net of related income and losses on disposition, are included in other expenses and gains and losses are included in other non-interest income or other non-interest expense. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation expense is computed on straight line and accelerated methods over the estimated useful lives of the assets, which range from 3 to 15 years for furniture, fixtures and equipment and 5 to 40 years for building premises. Repair and maintenance expenditures which extend the useful life of an asset are capitalized and other repair expenditures are expensed as incurred. When premises or equipment are retired or sold, the remaining cost and accumulated depreciation are removed from the accounts and any gain or loss is credited to income or charged to expense, respectively. Intangible Assets Intangible assets, other than goodwill, include core deposit intangibles, covenants not to compete and mortgage servicing rights (MSRs). Core deposit intangibles are a measure of the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. Covenants not to compete are payments made to former employees as compensation for agreeing not to work for competitors. The core deposit intangibles are being amortized over 10 years using the sum-of-the-years digits method of amortization, while the covenant not to compete is being amortized over four years on a straight line basis. MSR's arose from the Company originating certain loans for the express purpose of selling such loans in the secondary market. The Company maintains all servicing rights for these loans. The loans held for sale are carried at lower of cost or market. Originated MSRs are recorded by allocating total costs incurred between the loan and servicing rights based on their relative fair values. MSRs are amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio and measured annually for impairment. The recoverability of the carrying value of intangible assets is evaluated on an ongoing basis, and permanent declines in value, if any, are charged to expense. Goodwill The Company utilizes a two-step process for testing the impairment of goodwill on at least an annual basis. This approach could cause more volatility in the Company's reported net income because impairment losses, if any, could occur irregularly and in varying amounts. The Company may also perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. Based on the fair value of the reporting unit, no impairment of goodwill was recognized in 2017, 2016 or 2015. Bank Owned Life Insurance The Company has purchased life insurance policies on certain employees. Prior to January 1, 2015 . Additionally, as a result of the acquisition of FNB, the Company acquired life insurance policies on former FNB employees and directors. The policies obtained as part of the acquisition provide a fixed dollar benefit to the former employee or director beneficiaries, whether or not the insured person is affiliated with the Company at the time of his or her death. Bank owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Increases in the cash surrender value are recognized as other non-interest income. The obligation of $578,000 and $569,000 under split-dollar benefit agreements to former employees and directors or their beneficiaries have been recognized as liabilities on the consolidated balance sheet.at December 31, 2017 and 2016. Income Taxes The Company and the Bank file a consolidated federal income tax return. Deferred tax assets and liabilities are computed based on the difference between the financial statement basis and income tax basis of assets and liabilities using the enacted marginal tax rates. Deferred income tax expenses or benefits are based on the changes in the net deferred tax asset or liability from period to period. Employee Benefit Plans The Company has noncontributory defined benefit pension plans covering employees hired before January 1, 2007 and employees acquired as part of the FNB acquisition. It is the Company's policy to fund pension costs on a current basis to the extent deductible under existing tax regulations. Such contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. The Company has a defined contribution, 401(k) plan covering eligible employees. The employee may also contribute to the plan on a voluntary basis, up to a maximum percentage allowable not to exceed the limits of Code Sections 401(k). Under the plan, the Company also makes contributions on behalf of eligible employees, which vest immediately. For employees hired after January 1, 2007, in lieu of the pension plan, an additional annual discretionary 401(k) plan contribution is made and is equal to a percentage of an employee's base compensation. The Company also has a profit-sharing plan for employees which provide tax-deferred salary savings to plan participants. The Company has a deferred compensation plan for directors who have elected to defer all or portions of their fees until their retirement or termination from service. The Company has a restricted stock plan which covers eligible employees and non-employee corporate directors. Under the plan, awards are granted based upon performance related requirements and are subject to certain vesting criteria. Compensation cost related to restricted stock is recognized based on the market price of the stock at the grant date over the vesting period. The Company has an employee stock purchase plan that allows employees to withhold money from their paychecks, which is then utilized to purchase shares of the Company's stock on either the open market or through treasury stock, if shares are unavailable on the open market. 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. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Company. Expenses under the SERP are recognized as earned over the expected years of service. Advertising Costs Advertising costs are generally expensed as incurred and amounted to $343,000, $356,000 and $243,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Comprehensive Loss The Company is required to present comprehensive income in a full set of general purpose financial statements for all periods presented. Other comprehensive loss is comprised of unrealized holding gains (losses) on the available-for-sale securities portfolio and unrecognized pension costs. Change in Accounting Principal On February 14, 2018, the Financial Accounting Standards Board finalized ASU 2018-02 - Income Statement-Reporting Comprehensive Income (Topic 220). This accounting standard allows Companies to reclassify the "stranded" tax effect in accumulated other comprehensive income that resulted from the U.S. federal government enacted a tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act), which requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws. The Company has elected to early-adopt this accounting standard, which provides a benefit to the financial statements by more accurately aligning the impacts of the items carried in accumulated other comprehensive income with the associate tax effect. The adoption was applied on a modified retrospective and resulted in a one-time cumulative effect adjustment of $559,000 between Retained Earnings and Accumulated Other Comprehensive Income on the Consolidated Balance Sheet as of the beginning of the current period. The adjustment had no impact on Net Income or any prior periods presented. 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 i In August 2015, the FASB issued ASU 2015-14, Revenue from Contract with Customers Topic 606 In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt th In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application In March 2016, the FASB issued ASU 2016-08, 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, 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 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management's current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. I Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 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 2016-18, Statement of Cash Flows (Topic 230) In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business "ASU 2017-01", which provides a more robust framework to use in determining when a set of assets and activities

RESTRICTIONS ON CASH AND DUE FR

RESTRICTIONS ON CASH AND DUE FROM BANKS	12 Months Ended
	Dec. 31, 2017
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract]
RESTRICTIONS ON CASH AND DUE FROM BANKS	2. RESTRICTIONS ON CASH AND DUE FROM BANKS The Bank is required to maintain reserves, in the form of cash balances with the Federal Reserve Bank, against its deposit liabilities. The amount of such reserves was $2,645,000 and $2,297,000 at December 31, 2017 and 2016, respectively. Non-retirement account deposits with one financial institution are insured up to $250,000. At times, the Company maintains cash and cash equivalents with other financial institutions in excess of the insured amount.

INVESTMENT SECURITIES

INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2017
INVESTMENT SECURITIES [Abstract]
INVESTMENT SECURITIES	3. INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses, and fair value of investment securities at December 31, 2017 and 2016 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair 2017 Cost Gains Losses Value Available-for-sale securities: U.S. Agency securities $ 99,454 $ 26 $ (593 ) $ 98,887 U.S. Treasuries 28,782 - (178 ) 28,604 Obligations of state and political subdivisions 78,409 820 (139 ) 79,090 Corporate obligations 3,000 83 - 3,083 Mortgage-backed securities in government sponsored entities 45,385 19 (377 ) 45,027 Equity securities in financial institutions 92 - (1 ) 91 Total available-for-sale securities $ 255,122 $ 948 $ (1,288 ) $ 254,782 Gross Gross Amortized Unrealized Unrealized Fair 2016 Cost Gains Losses Value Available-for-sale securities: U.S. Agency securities $ 170,276 $ 407 $ (269 ) $ 170,414 U.S. Treasuries 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, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at December 31, 2017 and 2016 (in thousands). As of December 31, 2017, the Company owned 122 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 2017 Value Losses Value Losses Value Losses U.S. Agency securities $ 74,952 $ (421 ) $ 16,928 $ (172 ) $ 91,880 $ (593 ) U.S. Treasuries 28,604 (178 ) - - 28,604 (178 ) Obligations of states and political subdivisions 14,885 (85 ) 5,958 (54 ) 20,843 (139 ) Mortgage-backed securities in government sponsored entities 27,154 (190 ) 13,822 (187 ) 40,976 (377 ) Equity securities in financial institutions 91 (1 ) - - 91 (1 ) Total securities $ 145,686 $ (875 ) $ 36,708 $ (413 ) $ 182,394 $ (1,288 ) 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 December 31, 2017, 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, U.S Treasury securities, obligations of states and political subdivisions, mortgage backed securities in government sponsored entities and equity securities in financial institutions. 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. As of December 31, 2017 and 2016, the Company had 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 company-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 during 2017, 2016 and, 2015 were $58,177,000, $22,372,000 and $30,464,000, respectively. The gross gains realized during 2017 consisted of $23,000, $20,000, $13,000 and $1,149,000 from the sales of ten agency securities, one mortgage backed security, thirteen interest bearing time deposits with other banks and five equity security positions, respectively. The gross losses realized during 2017 consisted of $170,000 from the sale of fourteen agency securities. The gross gains realized during 2016 consisted of $72,000, $27,000, $80,000 and $133,000 from the sales of four agency securities, two US treasury notes, four municipal securities and portions of three equity security positions, respectively. The gross losses realized during 2016 consisted of $22,000 and $35,000 from the sales of four agency securities and six corporate securities. The gross gains realized during 2015 consisted of $196,000, $69,000, $99,000 and $76,000 from the sales of five agency securities, five mortgage backed securities, seven municipal securities and an entire equity security position, respectively. The gross loss of $11,000 was realized from the sale of one US treasury security. Gross gains and gross losses were realized as follows (in thousands): 2017 2016 2015 Gross gains $ 1,205 $ 312 $ 440 Gross losses (170 ) (57 ) (11 ) Net (losses) gains $ 1,035 $ 255 $ 429 Investment securities with an approximate carrying value of $243,382,000 and $206,322,000 at December 31, 2017 and 2016, respectively, were pledged to secure public funds and certain other deposits as provided by law and certain borrowing arrangements of the Company. 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 at December 31, 2017, by contractual maturity are shown below (in thousands). Municipal securities that have been refunded and will therefore pay-off on the call date are reflected in the table below utilizing the call date as the date of repayment as payment is guaranteed on that day: Amortized Cost Fair Value Available-for-sale securities: Due in one year or less $ 45,328 $ 45,369 Due after one year through five years 118,597 118,331 Due after five years through ten years 31,687 31,676 Due after ten years 59,418 59,315 Total $ 255,030 $ 254,691

LOANS AND RELATED ALLOWANCE FOR

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES	12 Months Ended
	Dec. 31, 2017
LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES [Abstract]
LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES	4. LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES The Company grants commercial, industrial, agricultural, residential, and consumer loans primarily to customers throughout north central and south central Pennsylvania and southern New York. Although the Company has a diversified loan portfolio at December 31, 2017 and 2016, a substantial portion of its debtors' ability to honor their contracts is dependent on the economic conditions within these regions. The following table summarizes the primary segments of the loan portfolio, as well as how those segments are analyzed within the allowance for loan losses as of December 31, 2017 and 2016 (in thousands): 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 214,479 $ 1,065 $ 33 $ 213,381 Commercial 308,084 13,864 1,460 292,760 Agricultural 239,957 3,901 702 235,354 Construction 13,502 - - 13,502 Consumer 9,944 8 - 9,936 Other commercial loans 72,013 4,197 443 67,373 Other agricultural loans 37,809 1,363 - 36,446 State and political subdivision loans 104,737 - - 104,737 Total 1,000,525 24,398 2,638 973,489 Allowance for loan losses 11,190 410 - 10,780 Net loans $ 989,335 $ 23,988 $ 2,638 $ 962,709 2016 Real estate loans: Residential $ 207,423 $ 957 $ 35 $ 206,431 Commercial 252,577 5,742 1,969 244,866 Agricultural 123,624 3,347 738 119,539 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 1,653 - 21,735 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 As of December 31, 2017 and 2016, net unamortized loan fees and costs of $794,000 and $732,000, respectively, were included in the carrying value of loans. 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. 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 $2,638,000 and $3,367,000 at December 31, 2017 and December 31, 2016, respectively. The carrying value of the PCI loans was determined by projected discounted contractual cash flows. On the acquisition date, the unpaid principal balance for all PCI loans was $6,969,000 and the estimated fair value of the loans was $3,809,000. Total contractually required payments on these loans, including interest, at the acquisition date was $9,913,000. However, the Company's preliminary estimate of expected cash flows was $4,474,000. At such date, the Company established a credit risk related non-accretable discount (a discount representing amounts which are not expected to be collected from the customer nor liquidation of collateral) of $5,439,000 relating to these PCI loans, reflected in the recorded net fair value. Such amount is reflected as a non-accretable fair value adjustment to loans. The Company further estimated the timing and amount of expected cash flows and established an accretable discount of $665,000 on the acquisition date relating to these PCI loans. Changes in the amortizable yield for PCI loans were as follows for the years ended December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 Balance at beginning of period $ 389 $ 637 Accretion (632 ) (349 ) Reclassification of non-accretable discount 349 101 Balance at end of period $ 106 $ 389 The following table presents additional information regarding PCI loans (in thousands): December 31, 2017 December 31, 2016 Outstanding balance $ 5,295 $ 6,487 Carrying amount 2,638 3,367 Real estate loans serviced for Freddie Mac, Fannie Mae and the FHLB, which are not included in the Consolidated Balance Sheet, totaled $142,972,000 and $135,404,000 at December 31, 2017 and 2016, respectively. Loans sold to Freddie Mac and Fannie Mae were sold without recourse and total $114,643,000 and $102,444,000 at December 31, 2017 and 2016, The segments of the Bank's loan portfolio are disaggregated into classes to a level that allows management to monitor risk and performance. Residential real estate mortgages consists of 15 to 30 year first mortgages on residential real estate, while residential real estate home equities are consumer purpose installment loans or lines of credit secured by a mortgage which is often a second lien on residential real estate with terms of 15 years or less. Commercial real estate are business purpose loans secured by a mortgage on commercial real estate. Agricultural real estate are loans secured by a mortgage on real estate used in agriculture production. Construction real estate 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 collateral other than real estate and overdraft lines of credit connected with 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 subdivisions are loans for 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, commercial and agricultural real estate loans and state and political subdivision loans which are 90 days or more past due to be impaired. C ertain residential mortgages, home equity and consumer loans that are cross collateralized with commercial relationships determined to be impaired may be classified as impaired as well. The following table includes the recorded investment and unpaid principal balances for impaired loans by class, with the associated allowance amount as of December 31, 2017 and 2016, if applicable (in thousands) Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,055 $ 273 $ 700 $ 973 $ 47 Home Equity 92 40 52 92 9 Commercial 16,363 13,154 710 13,864 94 Agricultural 5,231 3,283 618 3,901 3 Consumer 10 2 6 8 - Other commercial loans 4,739 3,766 431 4,197 231 Other agricultural loans 1,397 1,238 125 1,363 26 Total $ 28,887 $ 21,756 $ 2,642 $ 24,398 $ 410 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 Other commercial loans 6,159 5,135 859 5,994 326 Other agricultural loans 1,653 1,629 24 1,653 30 Total $ 20,127 $ 15,031 $ 2,662 $ 17,693 $ 487 The following table includes the average investment in impaired loans and the income recognized on impaired loans for 2017, 2016 and 2015 (in thousands): Interest Average Interest Income Recorded Income Recognized 2017 Investment Recognized Cash Basis Real estate loans: Mortgages $ 900 $ 13 $ - Home Equity 67 4 - Commercial 11,567 385 7 Agricultural 3,574 131 - Consumer 3 - - Other commercial loans 4,790 152 52 Other agricultural loans 1,491 65 - Total $ 22,392 $ 750 $ 59 2016 Real estate loans: Mortgages $ 590 $ 13 $ - Home Equity 59 4 - Commercial 5,959 69 1 Agricultural 361 17 - Consumer - - - Other commercial loans 5,715 87 6 Other agricultural loans 190 11 - Total $ 12,874 $ 201 $ 7 Interest Average Interest Income Recorded Income Recognized 2015 Investment Recognized Cash Basis Real estate loans: Mortgages $ 240 $ 12 $ - Home Equity 88 4 - Commercial 5,683 63 5 Agricultural 56 2 - Consumer - - - Other commercial loans 2,700 98 6 Other agricultural loans 37 1 - Total $ 8,804 $ 180 $ 11 Credit Quality Information For commercial real estate, agricultural real estate, construction, other commercial, other agricultural loans and state and political subdivision loans, management uses a nine point internal risk rating system to monitor the credit quality. · 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 are 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 Bank'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 Bank engages an external consultant on at least an annual basis. The external consultant is engaged to 1) review a minimum of 50% of the dollar volume of the commercial loan portfolio on an annual basis, 2) review new loans originated over $1.0 million in the last years, 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 December 31, 2017 and 2016 (in thousands) 2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 281,742 $ 15,029 $ 11,271 $ 42 $ - $ 308,084 Agricultural 222,198 11,538 6,221 - - 239,957 Construction 13,364 - 138 - - 13,502 Other commercial loans 67,706 615 3,567 125 - 72,013 Other agricultural loans 34,914 1,325 1,570 - - 37,809 State and political subdivision loans 94,125 - 10,612 - - 104,737 Total $ 714,049 $ 28,507 $ 33,379 $ 167 $ - $ 776,102 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 equities 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. The following table presents the recorded investment in those loan classes based on payment activity as of December 31, 2017 and 2016 ( in thousands) 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 152,820 $ 1,492 $ 33 $ 154,345 Home Equity 60,022 112 - 60,134 Consumer 9,895 49 - 9,944 Total $ 222,737 $ 1,653 $ 33 $ 224,423 2016 Performing Non-performing PCI Total 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 Loans by Class 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 loans as of December 31, 2017 and 2016 (in thousands): 30-59 Days 60-89 Days 90 Days Total Past Total Financing 90 Days and 2017 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 996 $ 362 $ 810 $ 2,168 $ 152,144 $ 33 $ 154,345 $ 218 Home Equity 277 86 78 441 59,693 - 60,134 - Commercial 1,353 1,010 3,865 6,228 300,396 1,460 308,084 162 Agricultural 242 - 205 447 238,808 702 239,957 30 Construction - - 133 133 13,369 - 13,502 - Consumer 53 33 49 135 9,809 - 9,944 7 Other commercial loans 132 - 2,372 2,504 69,066 443 72,013 32 Other agricultural loans - 42 106 148 37,661 - 37,809 106 State and political subdivision loans - - - - 104,737 - 104,737 - Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 $ 555 Loans considered non-accrual $ 816 $ 281 $ 7,063 $ 8,160 $ 2,011 $ - $ 10,171 Loans still accruing 2,237 1,252 555 4,044 983,672 2,638 990,354 Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 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 nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, 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. The following table reflects the loans on nonaccrual status as of December 31, 2017 and 2016, respectively. The balances are presented by class of loan (in thousands): 2017 2016 Real estate loans: Mortgages $ 1,274 $ 1,475 Home Equity 112 95 Commercial 5,192 4,445 Agricultural 175 1,340 Construction 133 - Consumer 42 42 Other commercial loans 2,637 4,057 Other agricultural loans 606 - $ 10,171 $ 11,454 Interest income on loans would have increased by approximately $709,000, $603,000 and $463,000 during 2017, 2016 and 2015, respectively, if these loans had performed in accordance with their terms. Troubled Debt Restructurings (TDR) 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 TDR. Management strives to identify borrowers in financial difficulty early and work with them to modify more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring 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 December 31, 2017, 2016 and 2015, included within the allowance for loan losses are reserves of $41,000, $29,000 and $37,000, respectively, that are associated with loans modified as TDRs . Loan modifications that are considered TDRs completed during the years ended December 31, 2017, 2016 and 2015 were as follows (dollars in thousands): 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: Home Equity - 1 $ - $ 25 $ - $ 25 Commercial - 5 - 7,021 - 7,021 Agricultural - 4 - 1,475 - 1,475 Other commercial loans - 1 - 9 - 9 Other agricultural loans - 1 - 161 - 161 Total - 12 $ - $ 8,691 $ - $ 8,691 Real estate loans: Commercial - 4 $ - $ 1,188 $ - $ 1,188 Agricultural - 5 - 1,956 - 1,956 Other commercial loans - 3 - 3,076 - 3,076 Other agricultural loans - 7 - 1,558 - 1,558 Total - 19 $ - $ 7,778 $ - $ 7,778 Real estate loans: Mortgages 1 1 $ 71 $ 19 $ 71 $ 19 Total 1 1 $ 71 $ 19 $ 71 $ 19 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. The following table presents the recorded investment in loans that were modified as TDRs during each 12-month period prior to the current reporting periods, which begin January 1, 2017, 2016 and 2015, respectively, and that subsequently defaulted during these reporting periods (dollars in thousands): December 31, 2017 December 31, 2016 December 31, 2015 Number of contracts Recorded investment Number of contracts Recorded investment Number of contracts Recorded investment Other agricultural loans 2 $ 632 - $ - - $ - Total recidivism 2 $ 632 - $ - - $ - 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 December 31, 2017 and 2016 included with other assets are $1,119,000, and $1,036,000, respectively, of foreclosed assets. As of December 31, 2017, included within the foreclosed assets is $254,000 of consumer residential mortgages that were foreclosed on or received via a deed in lieu transaction prior to the period end. As of December 31, 2017, the Company has initiated formal foreclosure proceedings on $1,600,000 of consumer residential mortgages, which have not yet been transferred into foreclosed assets. Allowance for Loan Losses The following tables roll forward the balance of the allowance for loan and lease losses for the years ended December 31, 2017, 2016 and 2015 and is segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2017, 2016 and 2015 (in thousands): Balance at December 31, 2016 Charge-offs Recoveries Provision (Benefit) Balance at December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 1,064 $ (107 ) $ - $ 92 $ 1,049 $ 56 $ 993 Commercial 3,589 (41 ) 11 308 3,867 94 3,773 Agricultural 1,494 (30 ) - 1,679 3,143 3 3,140 Construction 47 - - (24 ) 23 - 23 Consumer 122 (130 ) 49 83 124 - 124 Other commercial loans 1,327 - 16 (71 ) 1,272 231 1,041 Other agricultural loans 312 (5 ) 1 184 492 26 466 State and political subdivision loans 833 - - (17 ) 816 - 816 Unallocated 98 - - 306 404 - 404 Total $ 8,886 $ (313 ) $ 77 $ 2,540 $ 11,190 $ 410 $ 10,780 Balance at December 31, 2015 Charge-offs Recoveries Provision (Benefit) Balance at December 31, 2016 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 905 $ (85 ) $ - $ 244 $ 1,064 $ 32 $ 1,032 Commercial 3,376 (100 ) 479 (166 ) 3,589 45 3,544 Agricultural 409 - - 1,085 1,494 54 1,440 Construction 24 - - 23 47 - 47 Consumer 102 (100 ) 88 32 122 - 122 Other commercial loans 1,183 (55 ) 33 166 1,327 326 1,001 Other agricultural loans 122 - - 190 312 30 282 State and political subdivision loans 593 - - 240 833 - 833 Unallocated 392 - - (294 ) 98 - 98 Total $ 7,106 $ (340 ) $ 600 $ 1,520 $ 8,886 $ 487 $ 8,399 Balance at December 31, 2014 Charge-offs Recoveries Provision (Benefit) Balance at December 31, 2015 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 878 $ (66 ) $ - $ 93 $ 905 $ 37 $ 868 Commercial 3,419 (84 ) 14 27 3,376 62 3,314 Agricultural 451 - - (42 ) 409 409 Construction 26 - - (2 ) 24 - 24 Consumer 84 (47 ) 33 32 102 - 102 Other commercial loans 1,007 (41 ) 2 215 1,183 256 927 Other agricultural loans 217 - - (95 ) 122 122 State and political - subdivision loans 545 - - 48 593 - 593 Unallocated 188 - - 204 392 - 392 Total $ 6,815 $ (238 ) $ 49 $ 480 $ 7,106 $ 355 $ 6,751 As discussed in Footnote 1, management evaluates various qualitative factors on a quarterly basis. The following are explanations for the changes in the allowance by portfolio segments: 2017 Residential - There was an increase in the historical loss factor for residential loans when comparing 2016 and 2017. The specific reserve for residential loans increased slightly between 2016 and 2017. 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. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for residential loan categories due to an decrease in the unemployment rates in the local economy during 2017. Commercial real estate– There was a decrease in the historical loss factor for commercial real estate loans when comparing 2016 and 2017. The specific reserve for commercial real estate loans increased slightly between 2016 and 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 an decrease in the unemployment rates in the local economy during 2017. The qualitative factors for changes in the levels of and trends in delinquencies, impaired and classified loans was decreased due to a lower amount of substandard loans. Agricultural real estate – There was an increase in the historical loss factor for agricultural real estate loans from 2016 to 2017. The specific reserve for agricultural real estate loans decreased from 2016 to 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was increased for agricultural real estate due to an increase in classified loans. 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. The qualitative factors for existence of credit concentrations and changes in the level of concentrations were increased for agricultural real estate loans due to growth in these loan categories. Other commercial - There was a decrease in the historical loss factor for other commercial loans when comparing 2016 and 2017. The specific reserve for other commercial loans decreased from 2016 to 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was decreased due to the decrease in non-accrual loans and 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 an decrease in the unemployment rates in the local economy during 2017. The qualitative factors for existence of credit concentrations and changes in the level of concentrations were decreased for other commercial loans due to limited organic growth in these loan categories. Other agricultural - There was an increase in the historical loss factor for other agricultural loans from 2016 to 2017. The specific reserve for other agricultural loans decreased slightly from 2016 to 2017. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for other agricultural loans due to an increase in past due, non-accrual and substandard loans. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for other agricultural loan categories due to a decrease in the unemployment rates in the local economy during 2017. The qualitative factors for existence of credit concentrations and changes in the level of concentrations were increased for other agricultural loans due to growth in these loan categories. Municipal loans - There was no change in the historical loss factor or specific reserve for municipal loans from 2016 to 2017. The qualitative factor for national, state, regional and local economic trends and business conditions was decreased for municipal loans due to a decrease in the unemployment rates in the local economy during 2017. 2016 Residential - There was an increase in the historical loss factor for residential loans when comparing 2015 and 2016. The specific reserve for residential loans decreased slightly between 2015 and 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. The qualitative factor for national, state, regional and local economic trends and business conditions was increased for residential loan categories due to an increase in the unemployment rates in the local economy during 2016. Commercial real estate– There was a decrease in the historical loss factor for commercial real estate loans when comparing 2015 and 2016. The specific reserve for commercial real estate loans decreased slightly between 2015 and 2016. The qualitative factor for national, state, regional and local economic trends and business conditions was increased for all commercial real estate loans due to an increase in the unemployment rates in the local economy during 2016. The qualitative factors for changes in quality of the institutions loan review system were increased for commercial real estate loans due to the addition of new staff and processes. Agricultural real estate – There was no change in the historical loss factor for agricultural real estate loans from 2015 to 2016. The specific reserve for agricultural real estate loans increased from 2015 to 2016. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was increased for agricultural real estate due to an increase in past due, non-accrual and classified loans. 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 has occurred in 2016, which negatively affected customer earnings. The qualitative factor for national, state, regional and local economic trends and business conditions was increased for agricultural real estate loans due to an increase in the unemployment rates in the local economy during 2016. The qualitative factors for changes in quality of the institutions loan review system were increased for agricultural real estate due to the addition of new staff and processes. The qualitative factors for trends in volume, terms and nature of the loan portfolio were increased for agricultural real estate loans due to growth in these loan categories. Other commercial - There was an increase in the historical loss factor for other commercial loans when comparing 2015 and 2016. The specific reserve for other commercial loans increased from 2015 to 2016. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans was not increased due to the increase being caused by one relationship instead of a larger trend. The qualitative factor for national, state, regional and local economic trends and business conditions was increased for other commercial loans due to an increase in the unemployment rates in the local economy during 2016. The qualitative factors for changes in quality of the institutions loan review system were increased for other commercial due to the addition of new staff and processes. Other agricultural - There was no change in the historical loss factor for other agricultural loans from 2015 to 2016. The specific reserve for other agricultural loans increased from 2015 to 2016. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for other agricultural loans due to an increase in past due, non-accrual and classified loans 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 has occurred in 2016, which negatively affected customer earnings. The qualitative factor for national, state, regional and local economic trends and business conditions was increased for other agricultural loan categories due to an increase in the unemployment rates in the local economy during 2016. The qualitative factors for changes in quality of the institutions loan review system were increased for other agricultural loans due to the addition of new staff and processes. The qualitative factors for trends in volume, terms and nature of the loan portfolio were increased for other agricultural loans due to growth in these loan categories. Municipal loans - There was no change in the historical loss factor or the specific reserve for municipal loans from 2015 to 2016. The qualitative factors for changes in levels of and trends in delinquencies, impaired/classified loans were increased for municipal loans due to an increase in classified loans. The qualitative factor for national, state, regional and local economic trends and business conditions was increased for municipal loans due to an increase in the unemployment rates in the local economy during 2016. The qualitative factors for trends in volume, terms and nature of the loan portfolio were decreased for municipal loans due to this loan segment making up a smaller portion of the Bank's overall loan portfolio as we continue to grow commercial and agricultural loans. The qualitative factors for experience, ability, and depth of lending management was decre

PREMISES & EQUIPMENT

PREMISES & EQUIPMENT	12 Months Ended
	Dec. 31, 2017
PREMISES & EQUIPMENT [Abstract]
PREMISES & EQUIPMENT	5. PREMISES & EQUIPMENT Premises and equipment at December 31, 2017 and 2016 are summarized as follows (in thousands): December 31, 2017 2016 Land $ 5,110 $ 5,110 Buildings 17,402 17,315 Furniture, fixtures and equipment 6,698 6,678 Construction in process 16 5 29,226 29,108 Less: accumulated depreciation 12,703 12,078 Premises and equipment, net $ 16,523 $ 17,030 Depreciation expense amounted to $776,000, $763,000 and $608,000 for 2017, 2016 and 2015, respectively.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2017
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	6. GOODWILL AND OTHER INTANGIBLE ASSETS The following table provides the gross carrying value and accumulated amortization of intangible assets as of December 31, 2017 and 2016 (in thousands): December 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 $ 1,605 $ (912 ) $ 693 $ 1,471 $ (787 ) $ 684 Core deposit intangibles 1,786 (586 ) 1,200 1,641 (320 ) 1,321 Covenant not to compete 125 (65 ) 60 125 (34 ) 91 Total amortized intangible assets $ 3,516 $ (1,563 ) $ 1,953 $ 3,237 $ (1,141 ) $ 2,096 Unamortized intangible assets: Goodwill $ 23,296 $ 21,089 (1) Excludes fully amortized intangible assets The following table provides the current year and estimated future amortization expense for the next five years of amortized intangible assets (in thousands). We based our projections of amortization expense shown below on existing asset balances at December 31, 2017. Future amortization expense may vary from these projections: MSRs Core deposit intangibles Covenant not to compete Total Year ended December 31, 2017 (actual) $ 177 $ 266 $ 31 $ 474 Estimate for year ended December 31, 2018 184 265 31 480 2019 148 230 29 407 2020 115 197 - 312 2021 88 165 - 253 2022 64 133 - 197

FEDERAL HOME LOAN BANK (FHLB) S

FEDERAL HOME LOAN BANK (FHLB) STOCK	12 Months Ended
	Dec. 31, 2017
FEDERAL HOME LOAN BANK (FHLB) STOCK [Abstract]
FEDERAL HOME LOAN BANK (FHLB) STOCK	7. FEDERAL HOME LOAN BANK (FHLB) STOCK As a member of the FHLB of Pittsburgh, the Bank 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 December 31, 2017 and 2016, the Bank held $6,021,000 and $4,542,000, respectively, of FHLB stock.

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2017
DEPOSITS [Abstract]
DEPOSITS	8. DEPOSITS The following table shows the breakdown of deposits as of December 31, 2017 and 2016, by deposit type (in thousands): 2017 2016 Non-interest-bearing deposits $ 171,840 $ 147,425 NOW accounts 337,307 305,862 Savings deposits 184,057 170,722 Money market deposit accounts 145,287 116,880 Certificates of deposit 266,452 264,614 Total $ 1,104,943 $ 1,005,503 Certificates of deposit of $250,000 or more amounted to $62,561,000 and $56,743,000 at December 31, 2017 and 2016, respectively. Following are maturities of certificates of deposit as of December 31, 2017 (in thousands): 2018 $ 107,591 2019 51,071 2020 56,515 2021 24,390 2022 20,870 Thereafter 6,015 Total certificates of deposit $ 266,452

BORROWED FUNDS AND REPURCHASE A

BORROWED FUNDS AND REPURCHASE AGREEMENTS	12 Months Ended
	Dec. 31, 2017
BORROWED FUNDS AND REPURCHASE AGREEMENTS [Abstract]
BORROWED FUNDS AND REPURCHASE AGREEMENTS	9. BORROWED FUNDS AND REPURCHASE AGREEMENTS The following table shows the breakdown of borrowed funds as of December 31, 2017 and 2016, (dollars in thousands): Securities Sold Under Total Agreements to FHLB Federal Funds FRB Notes Term Borrowed Repurchase(a) Advances(b) Line (c) BIC Line (d) Payable(e) Loans(f) Funds 2017 Balance at December 31 $ 14,989 $ 77,650 $ - $ - $ 7,500 $ 14,525 $ 114,664 Highest balance at any month-end 16,643 78,858 - - 7,500 16,525 119,526 Average balance 15,598 29,409 1 2 7,500 16,026 68,536 Weighted average interest rate: Paid during the year 0.97 % 1.25 % 1.52 % 1.75 % 4.06 % 2.44 % 1.77 % As of year-end 1.37 % 1.54 % 0.00 % 0.00 % 4.40 % 2.42 % 1.82 % 2016 Balance at December 31 $ 14,307 $ 41,330 $ - $ - $ 7,500 $ 16,525 $ 79,662 Highest balance at any month-end 16,132 45,125 - - 7,500 16,525 85,282 Average balance 15,057 7,917 2 3 7,500 16,525 47,004 Weighted average interest rate: Paid during the year 0.49 % 0.63 % 0.76 % 1.00 % 3.55 % 2.44 % 1.69 % As of year-end 0.67 % 0.74 % 0.00 % 0.00 % 3.79 % 2.44 % 1.36 % The collateral pledged on the repurchase agreements by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of December 31 , 2017 December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than 2017 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,027 $ - $ - $ 2,035 Total carrying value of collateral pledged $ 16,027 $ - $ - $ 2,035 $ 18,062 Total liability recognized for repurchase agreements $ 14,989 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than 2016 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,118 $ - $ - $ 2,059 Total carrying value of collateral pledged $ 16,118 $ - $ - $ 2,059 $ 18,177 Total liability recognized for repurchase agreements $ 14,307 (a) 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. (b) FHLB Advances consist of an "Open RepoPlus" agreement with the FHLB of Pittsburgh. FHLB "Open RepoPlus" advances are short-term borrowings that bear interest based on the FHLB discount rate or Federal Funds rate, whichever is higher. The Company has a borrowing limit of $453,407,000, inclusive of any outstanding advances. FHLB advances are secured by a blanket security agreement that includes the Company's FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans. (c) The federal funds line consists of an unsecured line from a third party bank at market rates. The Company has a borrowing limit of $10,000,000, inclusive of any outstanding balances. No specific collateral is required to be pledged for these borrowings. (d) The Federal Reserve Bank Borrower in Custody (FRB BIC) Line consists of a borrower in custody in agreement open in January 2010 with the Federal Reserve Bank of Philadelphia secured by municipal loans maintained in the Company's possession. As of December 31, 2017 and 2016, the Company has a borrowing limit of $4,400,000 and $4,360,000, respectively, inclusive of any outstanding advances. The approximate carrying value of the municipal loan collateral was $14,590,000 and $15,560,000 as of December 31, 2017 and 2016, respectively. (e) In December 2003, the Company formed a special purpose entity ("Entity") to issue $7,500,000 of floating rate obligated mandatory redeemable trust preferred securities as part of a pooled offering. The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80 percent. The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter. The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable. Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008. Under current accounting rules, the Company's minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet. The Entity is not consolidated as part of the Company's consolidated financial statements. (f) December 31, December 31, Interest Rate Maturity 2017 2016 Fixed: 2.29 % October 2, 2017 2,000 2.72 % July 12, 2018 1,000 1,000 1.87 % February 4, 2019 2,000 2,000 2.61 % February 3, 2021 2,000 2,000 3.52 % July 12, 2021 2,000 2,000 2.37 % August 20, 2021 2,800 2,800 2.08 % January 6, 2022 4,725 4,725 Total term loans $ 14,525 $ 16,525 Following are maturities of borrowed funds as of December 31, 2017 (in thousands): 2018 $ 100,025 2019 2,000 2020 580 2021 7,334 2022 4,725 Thereafter - Total borrowed funds $ 114,664

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2017
EMPLOYEE BENEFIT PLANS [Abstract]
EMPLOYEE BENEFIT PLANS	10. EMPLOYEE BENEFIT PLANS Noncontributory Defined Benefit Pension Plan The Bank sponsors a trusteed, noncontributory defined benefit 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 during 2015. 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". The pension plans call for benefits to be paid to eligible employees at retirement based primarily upon years of service with the Bank 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 Bank's funding policy is to make annual contributions, if needed, based upon the funding formula developed by the pension plans' actuary. For the years ended December 31, 2017, 2016 and 2015, contributions to the pension plans totaled $3,000,000, $818,000 and $400,000, respectively. In lieu of the pension plan, employees with a hire date of January 1, 2007 or later are eligible to receive, after meeting 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 is placed in a separate account within the 401(k) plan and is subject to a vesting requirement. Contributions by the Company totaled $133,000, $82,000 and $61,000 for 2017, 2016 and 2015, respectively. The following table sets forth the obligation and funded status as of December 31 (in thousands): 2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 18,603 $ 17,809 Service cost 349 345 Interest cost 671 692 Actuarial (Gain) / Loss 1,015 439 Benefits paid (805 ) (682 ) Benefit obligation at end of year 19,833 18,603 Change in plan assets Fair value of plan assets at beginning of year 15,786 14,786 Actual return (loss) on plan assets 2,011 864 Employer contribution 3,000 818 Benefits paid (805 ) (682 ) Fair value of plan assets at end of year 19,992 15,786 Funded status $ 159 $ (2,817 ) Amounts not yet recognized as a component of net periodic pension cost as of December 31 (in thousands): Amounts recognized in accumulated other comprehensive loss consists of: 2017 2016 Net loss $ 4,088 $ 4,263 Prior service cost (127 ) (175 ) Total $ 3,961 $ 4,088 The accumulated benefit obligation for the defined benefit pension plan was $19,833,000 and $18,603,000 at December 31, 2017 and 2016, respectively. The components of net periodic benefit costs for the years ended December 31 are as follows (in thousands): 2017 2016 2015 Service cost $ 349 $ 345 $ 352 Interest cost 671 692 424 Return on plan assets (1,094 ) (1,034 ) (791 ) Net amortization and deferral 224 219 205 Net periodic benefit cost $ 150 $ 222 $ 190 The estimated net loss and prior service cost that will be amortized from accumulated other comprehensive loss into the net periodic benefit cost (income) in 2018 is $233,000 and $(48,000), respectively. The weighted-average assumptions used to determine benefit obligations at December 31, 2017 and 2016 is summarized in the following table. The change in the discount rate is the primary driver of the actuarial loss that occurred in 2017 of $1,015,000. 2017 2016 Discount rate 3.35% 3.78% Rate of compensation increase 3.00% 3.00% The weighted-average assumptions used to determine net periodic benefit cost (income) for the year ended December 31: 2017 2016 2015 Discount rate 3.78% 3.94% 3.61% Expected long-term return on plan assets 7.00% 7.00% 7.00% Rate of compensation increase 3.00% 3.00% 3.00% The long-term rate of return on plan assets gives consideration to returns currently being earned on plan assets as well as future rates expected to be earned. The investment objective is to maximize total return consistent with the interests of the participants and beneficiaries, and prudent investment management. The allocation of the pension plan assets is determined on the basis of sound economic principles and is continually reviewed in light of changes in market conditions. Asset allocation favors equity securities, with a target allocation of 50-70%. The target allocation for debt securities is 30-50%. At December 31, 2017, the pension plan had a sufficient cash and money market position in order to re-allocate the equity portfolio for diversification purposes and reduce risk in the total portfolio. The following table sets forth by level, within the fair value hierarchy as defined in footnote 17, the Plan's assets at fair value as of December 31, 2016 and 2017 (in thousands): 2017 Level I Level II Level III Total Allocation Assets Cash and cash equivalents $ 3,827 $ - $ - $ 3,827 19.1 % Equity Securities 6,018 - - 6,018 30.1 % Mutual Funds and ETF's 6,090 - - 6,090 30.5 % Corporate Bonds - 3,469 - 3,469 17.4 % Municipal Bonds 105 105 0.5 % U.S. Agency Securities - 483 - 483 2.4 % Certificate of deposit - - - - 0.0 % Total $ 15,935 $ 4,057 $ - $ 19,992 100.0 % 2016 Level I Level II Level III Total Allocation Assets Cash and cash equivalents $ 863 $ - $ - $ 863 5.5 % Equity securities 5,404 - - 5,404 34.1 % Mutual funds and ETF's 5,235 - - 5,235 33.2 % Corporate bonds - 3,641 - 3,641 23.1 % Municipal bonds 107 107 0.7 % U.S. Agency securities - 536 - 536 3.4 % Total $ 11,502 $ 4,284 $ - $ 15,786 100.0 % Equity securities include the Company's common stock in the amounts of $684,000 (3.4% of total plan assets) and $548,000 (3.5% of total plan assets) at December 31, 2017 and 2016, respectively. Due to the contributions made in 2017, the Bank does not expect to contribute to its pension plans in 2018. Expected future benefit payments that the Bank estimates from its pension plan are as follows (in thousands): 2018 $ 629 2019 1,896 2020 1,599 2021 1,421 2022 843 2023 - 2027 7,805 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. The Company's contributions vest immediately. Contributions by the Company totaled $388,000, $351,000 and $285,000 for 2017, 2016 and 2015, respectively. 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 deferred compensation plan earn interest based upon the highest current rate offered to certificate of deposit customers. Amounts deferred under the deferred compensation plan are not guaranteed and represent a general liability of the Company. As of December 31, 2017 and 2016, an obligation of $928,000 and $940,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Amounts included in interest expense on the deferred amounts totaled $19,000, $15,000 and $22,000 for the years ended December 31, 2017, 2016 and 2015, respectively. 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 maybe subject to certain vesting requirements including in the case of employees, 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 December 31, 2017, 141,408 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 2017: 2017 Weighted Average Shares Market Price Outstanding, beginning of year 8,471 $ 49.10 Granted 4,482 53.84 Forfeited (43 ) 48.56 Vested (4,127 ) 49.78 Outstanding, end of year 8,783 $ 51.20 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 $214,000, $193,000 and $172,000 for the years ended December 31, 2017, 2016 and 2015, respectively. 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 December 31, 2017 and 2016, an obligation of $1,571,000 and $1,460,000, respectively, was included in other liabilities for the SERP in the Consolidated Balance Sheet. Expenses related to the SERP totaled $111,000, $121,000 and $141,000 for the years ended December 31, 2017, 2016 and 2015. Salary Continuation Plan The Company maintains a salary continuation plan for certain employees acquired through the acquisition of the FNB. At December 31, 2017 and 2016 an obligation of $716,000 and $720,000, respectively, was included in other liabilities for this plan in the Consolidated Balance Sheet. Expenses related to the salary continuation plan totaled $54,000 and $62,000 for the years ended December 31, 2017 and 2016, respectively. There were no expenses related to this plan during the year ended December 31, 2015. Continuation of Life Insurance Plan The Company, as part of the acquisition of FNB, has promised a continuation of life insurance coverage to certain persons post-retirement. GAAP requires 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 $578,000 and $569,000 at December 31, 2017 and 2016, respectively, which is included in other liabilities in the Consolidated Balance Sheet. Expenses for the plan total $9,000 during 2017. There were no expenses related to this plan during the years ended December 31, 2016 and 2015.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2017
INCOME TAXES [Abstract]
INCOME TAXES	11. INCOME TAXES The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2017 2016 2015 Currently payable $ 4,583 $ 2,672 $ 2,913 Change in corporate tax rate 1,531 - - Deferred tax (83 ) 362 (192 ) Provision for income taxes $ 6,031 $ 3,034 $ 2,721 The following temporary differences gave rise to the net deferred tax asset and liabilities at December 31, 2017 and 2016, respectively (in thousands): 2017 2016 Deferred tax assets: Allowance for loan losses $ 3,058 $ 4,518 Deferred compensation 464 757 Merger & acquisition costs 7 16 Allowance for losses on available-for-sale securities 6 250 Pension and other retirement obligation 297 1,454 Interest on non-accrual loans 917 1,259 Incentive plan accruals 324 421 Other real estate owned 108 152 Unrealized losses on available-for-sale securities 71 - Low income housing tax credits 64 94 NOL carry forward 339 709 AMT Credit Carryforward 8 8 Other 117 156 Total $ 5,780 $ 9,794 Deferred tax liabilities: Premises and equipment $ (623 ) $ (998 ) Investment securities accretion (66 ) (189 ) Loan fees and costs (257 ) (369 ) Goodwill and core deposit intangibles (2,200 ) (3,573 ) Mortgage servicing rights (146 ) (233 ) Unrealized gains on available-for-sale securities - (673 ) Other (7 ) (17 ) Total (3,299 ) (6,052 ) Deferred tax asset, net $ 2,481 $ 3,742 No valuation allowance was established at December 31, 2017 and 2016, due to the Company's ability to carryback to taxes paid in previous years and certain tax strategies, coupled with the anticipated future taxable income as evidenced by the Company's earnings potential. The total provision for income taxes is different from that computed at the statutory rates due to the following items (in thousands): Year Ended December 31, 2017 2016 2015 Provision at statutory rates on pre-tax income $ 6,505 $ 5,328 $ 4,878 Effect of tax-exempt income (1,710 ) (1,943 ) (1,915 ) Low income housing tax credits (141 ) (198 ) (198 ) Bank owned life insurance (225 ) (234 ) (214 ) Nondeductible interest 54 55 61 Nondeductible merger and acquisition expenses - - 102 Change in tax rate 1,531 - - Other items 17 26 7 Provision for income taxes $ 6,031 $ 3,034 $ 2,721 Statutory tax rates 34 % 34 % 34 % Effective tax rates 31.6 % 19.4 % 19.0 % The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. With limited exception, the Company's federal and state income tax returns for taxable years through 2013 have been closed for purposes of examination by the federal and state taxing authorities. Investments in Qualified Affordable Housing Projects As of December 31, 2017 and 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 $541,000 and $700,000 as of December 31, 2017 and 2016, respectively. Investments purchased prior to January 1, 2015, are accounted for utilizing the effective yield method. As of December 31, 2017, the Company has $705,000 of tax credits remaining that will be recognized over five years. Tax credits of $141,000, $198,000 and $198,000 were recognized as a reduction of tax expense during 2017, 2016 and 2015, respectively. Included within other expenses on the Consolidated Statement of Income was $159,000, $259,000 and $259,000 of amortization of the investments in qualified affordable housing projects for 2017, 2016 and 2015, respectively.

OTHER COMPREHENSIVE INCOME

OTHER COMPREHENSIVE INCOME	12 Months Ended
	Dec. 31, 2017
OTHER COMPREHENSIVE INCOME [Abstract]
OTHER COMPREHENSIVE INCOME	12. OTHER COMPREHENSIVE INCOME The components of accumulated other comprehensive loss, net of tax, as of December 31, were as follows (in thousands): 2017 2016 Net unrealized gain on securities available for sale $ (340 ) $ 1,979 Tax effect 71 (673 ) Net -of-tax amount (269 ) 1,306 Unrecognized pension costs (3,961 ) (4,088 ) Tax effect 832 1,390 Net -of-tax amount (3,129 ) (2,698 ) Total accumulated other comprehensive income $ (3,398 ) $ (1,392 ) The following tables present the changes in accumulated other comprehensive loss by component net of tax for the years ended December 31, 2017, 2016 and 2015 (in thousands): Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2014 $ 3,093 $ (2,326 ) $ 767 Other comprehensive income (loss) before reclassifications (net of tax) (606 ) (249 ) (855 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (283 ) 135 (148 ) Net current period other comprehensive income (loss) (889 ) (114 ) (1,003 ) Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income (loss) before reclassifications (net of tax) (730 ) (403 ) (1,133 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (168 ) 145 (23 ) Net current period other comprehensive income (loss) (898 ) (258 ) (1,156 ) Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income (loss) before reclassifications (net of tax) (847 ) (65 ) (912 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (683 ) 148 (535 ) Net current period other comprehensive income (loss) (1,530 ) 83 (1,447 ) Change in other comprehensive income due to change in the federal tax rate (45 ) (514 ) (559 ) Balance as of December 31, 2017 $ (269 ) $ (3,129 ) $ (3,398 ) (a) Amounts in parentheses indicate debits on the Consolidated Balance Sheet. The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive loss for the years ended December 31, 2017, 2016 and 2015: Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the Consolidated Statement of Income December 31, 2017 2016 2015 Unrealized gains and losses on available for sale securities $ 1,035 $ 255 $ 429 Investment securities gains, net (352 ) (87 ) (146 ) Provision for income taxes $ 683 $ 168 $ 283 Net of tax Defined benefit pension items $ (224 ) $ (219 ) $ (205 ) Salaries and employee benefits 76 74 70 Provision for income taxes $ (148 ) $ (145 ) $ (135 ) Net of tax Total reclassifications $ 535 $ 23 $ 148 (a) Amounts in parentheses indicate debits

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	13. RELATED PARTY TRANSACTIONS Certain executive officers and directors of the Company, or companies in which they have 10 percent or more beneficial ownership, were indebted to the Bank. Such loans were made in the ordinary course of business at the Bank's normal credit terms and do not present more than a normal risk of collection. A summary of loan activity for the years ended December 31, 2017 and 2016 with officers, directors, stockholders and associates of such persons is listed below (in thousands): Year Ended December 31, 2017 2016 Balance, beginning of year $ 5,570 $ 5,343 New loans 4,161 4,512 Repayments (5,146 ) (4,285 ) Balance, end of year $ 4,585 $ 5,570

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2017
REGULATORY MATTERS [Abstract]
REGULATORY MATTERS	14. REGULATORY MATTERS Dividend Restrictions: The approval of the Federal Reserve Board (FRB) is required for the Bank to pay dividends to the Company if the total of all dividends declared in any calendar year exceeds the Bank's net income (as defined) for that year combined with its retained net income for the preceding two calendar years. Under this formula, the Bank can declare dividends in 2018 without approval of the FRB or Pennsylvania Department of Banking of approximately $12,397,000, plus the Bank's 2018 year-to-date net income at the time of the dividend declaration. Loans: The Bank is subject to regulatory restrictions which limit its ability to loan funds to the Company. At December 31, 2017, the Bank's regulatory lending limit amounted to approximately $19,287,000. Regulatory Capital Requirements: Federal regulations require the Company and the Bank to maintain minimum amounts of capital. Specifically, each is required to maintain certain minimum dollar amounts and ratios of Total, Tier I and Common Equity Tier I capital to risk-weighted assets and of Tier I capital to average total assets. In addition to the capital requirements, the Federal Deposit Insurance Corporation Improvement Act (FDICIA) established five capital categories ranging from "well capitalized" to "critically under-capitalized." Should any institution fail to meet the requirements to be considered "adequately capitalized", it would become subject to a series of increasingly restrictive regulatory actions. As of December 31, 2017 and 2016, the FRB categorized the Company and the Bank as well capitalized, under the regulatory framework for prompt corrective action. To be categorized as a well capitalized financial institution, Total risk-based, Tier I risk-based, Common Equity Tier I risk based and Tier I leverage capital ratios must be at least 10%, 8%, 6.5% and 5%, respectively. The Company and Bank's computed risk‑based capital ratios are as follows as of December 31, 2017 and 2016 (dollars in thousands): Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions 2017 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets): Company $ 128,578 13.20 % $ 77,906 8.00 % $ 97,383 10.00 % Bank $ 122,469 12.58 % $ 77,852 8.00 % $ 97,315 10.00 % Tier 1 Capital (to Risk Weighted Assets): Company $ 117,224 12.04 % $ 58,430 6.00 % $ 77,906 8.00 % Bank $ 111,114 11.42 % $ 58,389 6.00 % $ 77,852 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets): Company $ 109,724 11.27 % $ 43,822 4.50 % $ 63,299 6.50 % Bank $ 111,114 11.42 % $ 43,792 4.50 % $ 63,255 6.50 % Tier 1 Capital (to Average Assets): Company $ 117,224 9.18 % $ 51,085 4.00 % $ 63,857 5.00 % Bank $ 111,114 8.71 % $ 51,023 4.00 % $ 63,778 5.00 % Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions 2016 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets): Company $ 121,717 14.93 % $ 65,217 8.00 % $ 81,522 10.00 % Bank $ 117,537 14.46 % $ 65,020 8.00 % $ 81,275 10.00 % Tier 1 Capital (to Risk Weighted Assets): Company $ 112,599 13.81 % $ 48,913 6.00 % $ 65,217 8.00 % Bank $ 108,419 13.34 % $ 48,765 6.00 % $ 65,020 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets): Company $ 105,099 12.89 % $ 36,685 4.50 % $ 52,989 6.50 % Bank $ 108,419 13.34 % $ 36,574 4.50 % $ 52,829 6.50 % Tier 1 Capital (to Average Assets): Company $ 112,599 9.46 % $ 47,586 4.00 % $ 59,483 5.00 % Bank $ 108,419 9.13 % $ 39,006 4.00 % $ 48,757 5.00 % This annual report has not been reviewed, or confirmed for accuracy or relevance, by the Federal Deposit Insurance Corporation.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2017
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	15. COMMITMENTS AND CONTINGENT LIABILITIES The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate or liquidity risk in excess of the amount recognized in the consolidated balance sheet. Credit Extension Commitments The Company's exposure to credit loss from nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments, whose contract amounts represent credit risk at December 31, 2017 and 2016, are as follows (in thousands): 2017 2016 Commitments to extend credit $ 188,482 $ 206,505 Standby letters of credit 15,244 14,955 $ 203,726 $ 221,460 Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company on extension of credit is based on management's credit assessment of the counter party. Standby letters of credit are conditional commitments issued by the Company to guarantee a financial agreement between a customer and a third party. Performance letters of credit represent conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance related contracts. The coverage period for these instruments is typically a one-year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized during the coverage period. For secured letters of credit, the collateral is typically Bank deposit instruments or customer business assets. The Company also offers limited overdraft protection as a non-contractual courtesy which is available to demand deposit accounts in good standing for business, personal or household use. The non-contractual amount of financial instruments with off-balance sheet risk at December 31, 2017 was $9,335,000. The Company reserves the right to discontinue this service without prior notice. Litigation Matters The Company is subject to lawsuits and claims arising out of its business. There are no legal proceedings or claims currently pending or threatened other than those encountered during the normal course of business, which include various foreclosure proceedings. As a result of these proceedings, it is not unusual for customers to countersue the Bank, which are vigorously challenged by the Bank.

OPERATING LEASES

OPERATING LEASES	12 Months Ended
	Dec. 31, 2017
OPERATING LEASES [Abstract]
OPERATING LEASES	16. OPERATING LEASES The following schedule shows future minimum rental payments under operating leases with noncancellable terms in excess of one year as of December 31, 2017 ( in thousands): 2018 $ 324 2019 327 2020 219 2021 171 2022 158 Thereafter 141 Total $ 1,340 The Company's operating lease obligations represent short and long-term lease and rental payments for facilities. Total rental expense for all operating leases for the years ended December 31, 2017, 2016 and 2015 were $351,000, $289,000 and $175,000, respectively.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2017
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	17. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company 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. In cases where significant credit valuation adjustments are incorporated into the estimation of fair value, reported amounts are classified as Level III inputs. The following tables present the assets reported on the consolidated balance sheet at their fair value on a recurring basis as of December 31, 2017 and 2016 (in thousands) 2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Securities available for sale: U.S. Agency securities $ - $ 98,887 $ - $ 98,887 U.S. Treasuries securities 28,604 - - 28,604 Obligations of state and political subdivisions - 79,090 - 79,090 Corporate obligations - 3,083 - 3,083 Mortgage-backed securities in government sponsored entities - 45,027 - 45,027 Equity securities in financial institutions 91 - - 91 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 December 31, 2017 and 2016 (in thousands) 2017 Level I Level II Level III Total Impaired Loans $ - $ - $ 1,569 $ 1,569 Other real estate owned - - 1,024 1,024 2016 Level I Level II Level III Total Impaired Loans $ - $ - $ 2,033 $ 2,033 Other real estate owned - - 839 839 · Impaired Loans - · Other Real Estate Owned – OREO is carried at the lower of cost or fair value, which is measured at the date foreclosure. If the fair value of the collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in the table above. If the fair value of the collateral is less than the carrying amount of the loan, management will charge the loan down to its estimated realizable value. The fair value of OREO is based on the appraised value of the property, which is generally unadjusted by management and is based on comparable sales for similar properties in the same geographic region as the subject property, and is included in the above table as a Level II measurement. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. In these cases, the loans are categorized in the above table as Level III measurement since these adjustments are considered to be unobservable inputs. Income and expenses from operations and further declines in the fair value of the collateral subsequent to foreclosure are included in net expenses from 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 3 Fair Value Measurements 2017 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 1,569 Appraised Collateral Values Discount for time since appraisal 0-100 % 30.83 % Selling costs 5%-9 % 8.35 % Holding period 6 - 12 months 11 months Other real estate owned $ 1,024 Appraised Collateral Values Discount for time since appraisal 15-65 % 26.26 % 2016 Fair Value Valuation Technique(s) Unobservable input Range Weighted average 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 December 31, 2017 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 18,517 $ 18,517 $ 18,517 $ - $ - Interest bearing time deposits with other banks 10,283 10,287 - - 10,287 Available-for-sale securities 254,782 254,782 28,695 226,087 - Loans held for sale 1,439 1,439 1,439 Net loans 989,335 981,238 - - 981,238 Bank owned life insurance 26,883 26,883 26,883 - - Regulatory stock 6,784 6,784 6,784 - - Accrued interest receivable 4,196 4,196 4,196 - - Financial liabilities: Deposits $ 1,104,943 $ 1,101,583 $ 838,490 $ - $ 263,093 Borrowed funds 114,664 113,452 77,650 - 35,802 Accrued interest payable 897 897 897 - - Carrying December 31, 2016 Amount Fair Value Level I Level II Level III 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 estimates are made at a specific point in time, 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. Estimated 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 due from banks 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 available-for-sale securities are based on quoted market prices as of the balance sheet date. For certain instruments, fair value is estimated by obtaining quotes from independent dealers. 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. Fair value for significant nonperforming loans is based on recent external appraisals or estimated cash flows discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. 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: The fair value of borrowed funds is based on the discounted value of contractual cash flows. The discount rate is the rates available to the Company for borrowed funds with similar terms and remaining maturities.

CONDENSED FINANCIAL INFORMATION

CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY	12 Months Ended
	Dec. 31, 2017
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY [Abstract]
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY	18. CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY The following is condensed financial information for Citizens Financial Services, Inc.: CITIZENS FINANCIAL SERVICES, INC. CONDENSED BALANCE SHEET December 31, (in thousands) 2017 2016 Assets: Cash $ 6,238 $ 2,245 Available-for-sale securities 91 2,735 Investment in subsidiary: First Citizens Community Bank 130,402 125,973 Other assets 369 564 Total assets $ 137,100 $ 131,517 Liabilities: Other liabilities $ 589 $ 749 Borrowed funds 7,500 7,500 Total liabilities 8,089 8,249 Stockholders' equity 129,011 123,268 Total liabilities and stockholders' equity $ 137,100 $ 131,517 CITIZENS FINANCIAL SERVICES, INC. CONDENSED STATEMENT OF INCOME Year Ended December 31, (in thousands) 2017 2016 2015 Dividends from: Bank subsidiary $ 7,507 $ 5,842 $ 5,582 Equity securities 60 92 71 Total income 7,567 5,934 5,653 Realized securities gains 1,021 31 76 Expenses 824 463 892 Income before equity in undistributed earnings of subsidiary 7,764 5,502 4,837 Equity in undistributed earnings - First Citizens Community Bank 5,261 7,136 6,789 Net income $ 13,025 $ 12,638 $ 11,626 Comprehensive income $ 11,578 $ 11,482 $ 10,623 CITIZENS FINANCIAL SERVICES, INC. CONDENSED STATEMENT OF CASH FLOWS Year Ended December 31, (in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 13,025 $ 12,638 $ 11,626 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (5,261 ) (7,136 ) (6,789 ) Investment securities gains, net (1,021 ) (31 ) (76 ) Other, net 629 230 322 Net cash provided by operating activities 7,372 5,701 5,083 Cash flows from investing activities: Purchases of available-for-sale securities (94 ) (1 ) (901 ) Proceeds from the sale of available-for-sale securities 2,828 201 113 Net cash provided by (used in) investing activities 2,734 200 (788 ) Cash flows from financing activities: Cash dividends paid (5,177 ) (5,081 ) (5,151 ) Purchase of treasury stock (979 ) (3,227 ) (2,455 ) Reissuance of treasury stock to employee stock purchase plan 43 59 - Purchase of restricted stock - - (7 ) Net cash used in financing activities (6,113 ) (8,249 ) (7,613 ) Net decrease in cash 3,993 (2,348 ) (3,318 ) Cash at beginning of year 2,245 4,593 7,911 Cash at end of year $ 6,238 $ 2,245 $ 4,593

CONSOLIDATED CONDENSED QUARTERL

CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED)	12 Months Ended
	Dec. 31, 2017
CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) [Abstract]
CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED)	19. CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) The following table presents summarized quarterly financial data for 2017 and 2016: (in thousands, except per share data) Three Months Ended, 2017 Mar 31 June 30 Sep 30 Dec 31 Interest income $ 11,300 $ 11,778 $ 12,120 $ 12,895 Interest expense 1,303 1,374 1,503 1,659 Net interest income 9,997 10,404 10,617 11,236 Provision for loan losses 615 625 500 800 Non-interest income 1,863 1,865 1,912 1,981 Investment securities gains, net 172 23 9 831 Non-interest expenses 7,191 7,166 7,247 7,710 Income before provision for income taxes 4,226 4,501 4,791 5,538 Provision for income taxes 923 1,033 1,141 2,934 Net income $ 3,303 $ 3,468 $ 3,650 $ 2,604 Earnings Per Share Basic $ 0.94 $ 1.00 $ 1.05 $ 0.75 Earnings Per Share Diluted $ 0.94 $ 1.00 $ 1.05 $ 0.75 Three Months Ended, 2016 Mar 31 June 30 Sep 30 Dec 31 Interest income $ 10,462 $ 10,426 $ 10,948 $ 11,169 Interest expense 1,257 1,255 1,236 1,293 Net interest income 9,205 9,171 9,712 9,876 Provision for loan losses 135 135 500 750 Non-interest income 1,889 1,855 1,908 1,992 Investment securities gains, net 27 128 - 100 Non-interest expenses 6,912 7,301 7,200 7,258 Income before provision for income taxes 4,074 3,718 3,920 3,960 Provision for income taxes 791 687 767 789 Net income $ 3,283 $ 3,031 $ 3,153 $ 3,171 Earnings Per Share Basic $ 0.93 $ 0.86 $ 0.90 $ 0.91 Earnings Per Share Diluted $ 0.93 $ 0.86 $ 0.90 $ 0.91

ACQUISITION OF FNB

ACQUISITION OF FNB	12 Months Ended
	Dec. 31, 2017
ACQUISITION OF FNB [Abstract]
ACQUISITION OF FNB	20. ACQUISITION OF FNB In the second quarter of 2015, the Company announced the signing of a definitive merger agreement to acquire 100% of the outstanding equity interest of FNB for $630 per share in cash and stock. FNB was a Pennsylvania bank that conducted its business from a main office in Lebanon County, Pennsylvania with four branches in Lebanon County, two branches in Schuylkill County, Pennsylvania, and one Branch in Berks County, Pennsylvania. The transaction closed on December 11, 2015, with FNB having been merged into First Citizens Community Bank, with First Citizens Community Bank as the surviving entity. The acquisition established the Company's presence in the Lebanon, Berks and Schuylkill Counties, Pennsylvania markets. Under the terms of the merger agreement, the Company acquired all of the outstanding shares of FNB for a total purchase price of approximately $21,603,000. As a result of the acquisition, the Company issued 336,515 common shares and $5.6 million in cash to the former shareholders of FNB. The shares were issued with a value of $47.50 per share, which was based on the close price of the Company's stock on December 11, 2015. The acquired assets and assumed liabilities were measured at estimated fair values. Management made significant estimates and exercised significant judgment in accounting for the acquisition. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, and historical loss factors of FNB. Real estate acquired through foreclosure was primarily valued based on appraised collateral values. The Company also recorded an identifiable intangible asset representing the core deposit base of FNB based on management's evaluation of the cost of such deposits relative to alternative funding sources. The Company also recorded an identifiable intangible asset representing a covenant not-to-compete with the former President of FNB. Management used significant estimates including the average lives of depository accounts, future interest rate levels, and the cost of servicing various depository products. Management used market quotations to determine the fair value of investment securities. The business combination resulted in the acquisition of loans with and without evidence of credit quality deterioration. FNB's loans were deemed to have credit impairment at the acquisition date if the Company did not expect to receive all contractually required cash flows due to concerns about credit quality. Such loans were fair valued and the difference between contractually required payments at the acquisition date and cash flows expected to be collected was recorded as a non-accretable difference. At the acquisition date, the Company recorded $3,809,000 of purchased credit-impaired loans. The method of measuring carrying value of purchased loans differs from loans originated by the Company (originated loans), and as such, the Company identifies purchased loans and purchased loans with a credit quality discount and originated loans at amortized cost. FNB's loans without evidence of credit deterioration were fair valued by discounting both expected principal and interest cash flows using an observable discount rate for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management's best estimates of default rates and pre-payment speeds. The following table summarizes the purchase of FNB as of December 11, 2015: (In Thousands, Except Per Share Data) Purchase Price Consideration in Common Stock Citizens Financial Services, Inc. shares issued 336,515 Value assigned to Citizens Financial Services, Inc. common share $ 47.50 Purchase price assigned to FNB common shares exchanged for Citizens Financial Services, Inc. $ 15,984 Purchase Price Consideration - Cash for Common Stock Purchase price assigned to The First National Bank of Fredericksburg common shares exchanged for cash 5,619 Total Purchase Price 21,603 Net Assets Acquired: The First National Bank of Fredericksburg shareholders' equity $ 12,298 Adjustments to reflect assets acquired at fair value: Loans Interest rate 31 General credit (1,362 ) Specific credit - non-amortizing (2,495 ) Specific credit - amortizing (665 ) Core deposit intangible 1,641 Covenant not to compete 125 Premises and equipment 1,203 Leased premises contracts (359 ) Other assets (358 ) Deferred tax assets 785 Adjustments to reflect liabilities acquired at fair value: Time deposits (74 ) 10,770 Goodwill resulting from merger $ 10,833 The following condensed statement reflects the amounts recognized as of the acquisition date for each major class of asset acquired and liability assumed: (In Thousands) Total purchase price $ 21,603 Assets (liabilities) acquired: Cash and cash equivalents $ 83,514 Interest bearing time deposits with other banks 1,236 Securities available for sale 23,831 Loans 115,211 Premises and equipment, net 4,743 Accrued interest receivable 282 Bank-owned life insurance 4,598 Intangibles 1,981 Deferred tax asset 2,979 Other assets 2,332 Time deposits (42,675 ) Deposits other than time deposits (182,555 ) Accrued interest payable (14 ) Other liabilities (4,693 ) 10,770 Goodwill resulting from the FNB merger $ 10,833 The Company recorded goodwill and other intangibles associated with the purchase of FNB totaling $12,814,000. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment from December 11, 2015 to December 31, 2017. None of the goodwill acquired is expected to be deductible for tax purposes. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. For the period from December 11, 2015 to December 31, 2017, no such adjustments were recorded. The identifiable intangible assets consist of a core deposit intangible, covenant not to compete intangible and MSRs which are being amortized on an accelerated basis over the useful life of such assets. See footnote 6 for additional information on the identifiable intangible assets. Amounts recognized separately from the acquisition include primarily legal fees, investment banking fees, system conversion costs, severance costs and contract termination costs. These costs were included in merger and acquisition expenses within non-interest expenses on the Consolidated Statement of Income and amounted to approximately $1,103,000 for the year ended December 31, 2015. Results of operations for FNB prior to the acquisition date are not included in the Consolidated Statement of Income for the year ended December 31, 2015. Due to the significant amount of fair value adjustments, historical results of FNB are not relevant to the Company's results of operations. Therefore, no pro forma information is presented.

ACQUISITION OF STATE COLLEGE BR

ACQUISITION OF STATE COLLEGE BRANCH	12 Months Ended
	Dec. 31, 2017
ACQUISITION OF STATE COLLEGE BRANCH [Abstract]
ACQUISITION OF STATE COLLEGE BRANCH	21. ACQUISITION OF STATE COLLEGE BRANCH In the second quarter of 2017, the Company announced the signing of a purchase and assumption agreement to acquire the full service branch in State College of S&T Bank. The transaction closed on December 8, 2017, and the Bank paid consideration of $1,044,000, which was based on the average deposit balances for the 30 days prior to the branch merging into First Citizens Community Bank. The acquisition established the Company's presence in the Centre County, Pennsylvania market. The acquired assets and assumed liabilities were measured at estimated fair values. Management made significant estimates and exercised significant judgment in accounting for the acquisition. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, and historical loss factors of S&T. The Bank also recorded an identifiable intangible asset representing the core deposit base of the branch based on management's evaluation of the cost of such deposits relative to alternative funding sources. The business combination resulted in the acquisition of loans without evidence of credit quality deterioration. Loans without evidence of credit deterioration were fair valued by discounting both expected principal and interest cash flows using an observable discount rate for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management's best estimates of default rates and pre-payment speeds. The following table summarizes the purchase of the branch as of December 7, 2017: (In Thousands) Purchase Price Consideration in cash $ 1,044 Net Assets Acquired for cash Loans, interest, PP&E less deposits, interest and escrow payable 3,509 Total cash consideration 4,553 Net Assets Acquired for cash $ 3,509 Adjustments to reflect assets acquired at fair value: Loans Interest rate (522 ) General credit (740 ) Core deposit intangible 145 Adjustments to reflect liabilities acquired at fair value: Time deposits (46 ) Acquired net assets at fair value 2,346 Goodwill resulting from acquisition $ 2,207 The following condensed statement reflects the amounts recognized as of the acquisition date for each major class of asset acquired and liability assumed: (In Thousands) Total purchase price $ 4,553 Net assets acquired: Cash and cash equivalents $ 154 Loans 39,847 Premises and equipment, net 86 Accrued interest receivable 74 Intangibles 145 Deposits (37,880 ) Accrued interest payable (29 ) Other liabilities (51 ) 2,346 Goodwill resulting from the branch acquisition $ 2,207 The Company recorded goodwill and other intangibles associated with the purchase of the branch totaling $2,352,000. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment from December 8, 2017 to December 31, 2017. Identifiable intangibles are amortized to their estimated residual values over the expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. For the period from December 8, 2017 to December 31, 2017, no such adjustments were recorded. The identifiable intangible assets consist of a core deposit intangible. See footnote 6 for additional information on the identifiable intangible assets.

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation	Basis of Presentation The financial statements are consolidated to include the accounts of the Company and its subsidiary, First Citizens Community Bank, and its subsidiary, First Citizens Insurance Agency, Inc. These statements have been prepared in accordance with U.S. generally accepted accounting principles. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements.
Use of Estimates	Use of Estimates In preparing the financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to determination of the allowance for loan losses, pension plans and deferred tax assets and liabilities.
Operating Segments	Operating Segments An operating segment is defined as a component of an enterprise that engages in business activities that generates revenue and incurs expense, and the operating results of which are reviewed by the chief operating decision maker in the determination of resource allocation and performance. While the Company's chief decision makers monitor the revenue streams of the various Company's products, services and regions, operations are managed and financial performance is evaluated on a Company-wide basis. Consistent with our internal reporting, the Company's business activities are reported as one segment, which is community banking.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents include cash on hand, deposits in banks and interest-earning deposits. Interest-earning deposits with original maturities of 90 days or less are considered cash equivalents. Net cash flows are reported for loans, deposits and short term borrowing transactions. Interest bearing time deposits with other banks are not included with cash and cash equivalents as the original maturities were greater than 90 days.
Investment Securities	Investment Securities Investment securities at the time of purchase are classified as one of the three following types: Held-to-Maturity Securities Trading Securities Available-for-Sale Securities The amortized cost of investment in debt securities is adjusted for amortization of premiums and accretion of discounts, computed by a method that results in a level yield. Gains and losses on the sale of investment securities are computed on the basis of specific identification of the adjusted cost of each security. Securities are periodically reviewed for other-than-temporary impairment. A decline in value that is considered to be other-than-temporary is recorded as a loss within non-interest income in the Consolidated Statement of Income. Common stock of the Federal Reserve Bank, Federal Home Loan Bank of Pittsburgh (FHLB) and correspondent banks represent ownership in institutions which are wholly owned by other financial institutions. These equity securities are accounted for at cost and are classified as other assets. The fair value of investments, except certain state and municipal securities, is based on bid prices published in financial newspapers or bid quotations received from securities dealers. The fair value of certain state and municipal securities is not readily available through market sources other than dealer quotations, so fair value is based on quoted market prices of similar instruments, adjusted for differences between the quoted instruments and the instruments being valued.
Loans Held for Sale	Loans Held for Sale Certain newly originated fixed-rate residential mortgage loans are classified as held for sale, because it is management's intent to sell these residential mortgage loans. The residential mortgage loans held for sale are carried at the lower of aggregate cost or market value.
Loans	Loans Interest on all loans is recognized on the accrual basis based upon the principal amount outstanding. The accrual of interest income on loans is discontinued when, in the opinion of management, doubt exists as to the ability to collect such interest. Payments received on non-accrual loans are applied to the outstanding principal balance or recorded as interest income, depending upon our assessment of our ultimate ability to collect principal and interest. Loans are returned to the accrual status when factors indicating doubtful collectability cease to exist. The Company recognizes nonrefundable loan origination fees and certain direct loan origination costs over the life of the related loan as an adjustment of loan yield using the interest method.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses which is charged to operations. The provision is based upon management's periodic evaluation of individual loans, the overall risk characteristics of the various portfolio segments, past experience with losses, the impact of economic conditions on borrowers, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses are particularly susceptible to significant change in the near term. Impaired loans are other commercial, other agricultural, municipal, agricultural real estate, commercial real estate loans and certain residential mortgages cross collateralized with commercial relationships for which it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The Company individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. The definition of "impaired loans" is not the same as the definition of "non-accrual loans," although the two categories overlap. The Company may choose to place a loan on non-accrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial, agricultural, municipal or commercial real estate loan. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of impaired loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value; or, as a practical expedient in the case of a collateral dependent loan, the difference between the fair value of the collateral and the recorded amount of the loans. Mortgage loans on one to four family properties and all consumer loans are large groups of smaller balance homogeneous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which is defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the borrower's prior payment record, and the amount of shortfall in relation to the principal and interest owed. The Company allocates the allowance based on the factors described below, which conform to the Company's loan classification policy. In reviewing risk within the Bank's loan portfolio, management has determined there to be several different risk categories within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) residential real estate loans; (ii) commercial real estate (iii) agricultural real estate loans; (iv) construction; (v) consumer loans; (vi) other commercial loans (vii) other agricultural loans and (viii) 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 for each risk category 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, 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 Bank'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 / CPI § 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 · Any change in the level of board oversight The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.
Loan Charge-off Policies	Loan Charge-off Policies Consumer loans are generally fully or partially charged down to the fair value of collateral securing the asset when the loan is 180 days past due for open-end loans or 120 days past due for closed-end loans unless the loan is well secured and in the process of collection. All other loans are generally charged down to the net realizable value when the loan is 90 days past due.
Troubled Debt Restructurings	Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a Troubled Debt Restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate allowance for loans that are identified as impaired through a TDR. TDRs are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment.
Purchased Credit Impaired Loans	Purchased Credit Impaired Loans The Company purchased loans in connection with its acquisition of FNB in 2015 and its acquisition of the State College branch in 2017, some of which showed evidence of credit deterioration as of the acquisition since origination. These purchased credit impaired (PCI) loans were recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Over the life of the loan, expected cash flows continue to be estimated. If this subsequent estimated indicated that the present value of expected cash flows is less than the carrying amount, a charge to the allowance for loan loss is made through a provision. If the estimate indicates that the present value of the expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Such purchased credit impaired loans are accounted for individually, and the Company estimates the amount and timing of expected cash flows for each loan. The expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan's contractual principal and interest over expected cash flows is not amortized over the remaining life of the loan (nonaccretable difference). For loans purchased that did not show evidence of credit deterioration, the difference between the fair value of the loan at the acquisition date and the loan's face value is being amortized as a yield adjustment over the estimated remaining life of the loan using the effective interest method.
Foreclosed Assets Held For Sale	Foreclosed Assets Held For Sale Foreclosed assets acquired in settlement of loans are carried at fair value, less estimated costs to sell. Prior to foreclosure, as the value of the underlying loan is written down to fair market value of the real estate or other assets to be acquired by a charge to the allowance for loan losses, if necessary. Any subsequent write-downs are charged against operating expenses. Operating expenses of such properties, net of related income and losses on disposition, are included in other expenses and gains and losses are included in other non-interest income or other non-interest expense.
Premises and Equipment	Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation expense is computed on straight line and accelerated methods over the estimated useful lives of the assets, which range from 3 to 15 years for furniture, fixtures and equipment and 5 to 40 years for building premises. Repair and maintenance expenditures which extend the useful life of an asset are capitalized and other repair expenditures are expensed as incurred. When premises or equipment are retired or sold, the remaining cost and accumulated depreciation are removed from the accounts and any gain or loss is credited to income or charged to expense, respectively.
Intangible Assets	Intangible Assets Intangible assets, other than goodwill, include core deposit intangibles, covenants not to compete and mortgage servicing rights (MSRs). Core deposit intangibles are a measure of the value of consumer demand and savings deposits acquired in business combinations accounted for as purchases. Covenants not to compete are payments made to former employees as compensation for agreeing not to work for competitors. The core deposit intangibles are being amortized over 10 years using the sum-of-the-years digits method of amortization, while the covenant not to compete is being amortized over four years on a straight line basis. MSR's arose from the Company originating certain loans for the express purpose of selling such loans in the secondary market. The Company maintains all servicing rights for these loans. The loans held for sale are carried at lower of cost or market. Originated MSRs are recorded by allocating total costs incurred between the loan and servicing rights based on their relative fair values. MSRs are amortized in proportion to the estimated servicing income over the estimated life of the servicing portfolio and measured annually for impairment. The recoverability of the carrying value of intangible assets is evaluated on an ongoing basis, and permanent declines in value, if any, are charged to expense.
Goodwill	Goodwill The Company utilizes a two-step process for testing the impairment of goodwill on at least an annual basis. This approach could cause more volatility in the Company's reported net income because impairment losses, if any, could occur irregularly and in varying amounts. The Company may also perform a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. Based on the fair value of the reporting unit, no impairment of goodwill was recognized in 2017, 2016 or 2015.
Bank Owned Life Insurance	Bank Owned Life Insurance The Company has purchased life insurance policies on certain employees. Prior to January 1, 2015 . Additionally, as a result of the acquisition of FNB, the Company acquired life insurance policies on former FNB employees and directors. The policies obtained as part of the acquisition provide a fixed dollar benefit to the former employee or director beneficiaries, whether or not the insured person is affiliated with the Company at the time of his or her death. Bank owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Increases in the cash surrender value are recognized as other non-interest income. The obligation of $578,000 and $569,000 under split-dollar benefit agreements to former employees and directors or their beneficiaries have been recognized as liabilities on the consolidated balance sheet.at December 31, 2017 and 2016.
Income Taxes	Income Taxes The Company and the Bank file a consolidated federal income tax return. Deferred tax assets and liabilities are computed based on the difference between the financial statement basis and income tax basis of assets and liabilities using the enacted marginal tax rates. Deferred income tax expenses or benefits are based on the changes in the net deferred tax asset or liability from period to period.
Employee Benefit Plans	Employee Benefit Plans The Company has noncontributory defined benefit pension plans covering employees hired before January 1, 2007 and employees acquired as part of the FNB acquisition. It is the Company's policy to fund pension costs on a current basis to the extent deductible under existing tax regulations. Such contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. The Company has a defined contribution, 401(k) plan covering eligible employees. The employee may also contribute to the plan on a voluntary basis, up to a maximum percentage allowable not to exceed the limits of Code Sections 401(k). Under the plan, the Company also makes contributions on behalf of eligible employees, which vest immediately. For employees hired after January 1, 2007, in lieu of the pension plan, an additional annual discretionary 401(k) plan contribution is made and is equal to a percentage of an employee's base compensation. The Company also has a profit-sharing plan for employees which provide tax-deferred salary savings to plan participants. The Company has a deferred compensation plan for directors who have elected to defer all or portions of their fees until their retirement or termination from service. The Company has a restricted stock plan which covers eligible employees and non-employee corporate directors. Under the plan, awards are granted based upon performance related requirements and are subject to certain vesting criteria. Compensation cost related to restricted stock is recognized based on the market price of the stock at the grant date over the vesting period. The Company has an employee stock purchase plan that allows employees to withhold money from their paychecks, which is then utilized to purchase shares of the Company's stock on either the open market or through treasury stock, if shares are unavailable on the open market. 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. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Company. Expenses under the SERP are recognized as earned over the expected years of service.
Advertising Costs	Advertising Costs Advertising costs are generally expensed as incurred and amounted to $343,000, $356,000 and $243,000 for the years ended December 31, 2017, 2016 and 2015, respectively.
Comprehensive Loss	Comprehensive Loss The Company is required to present comprehensive income in a full set of general purpose financial statements for all periods presented. Other comprehensive loss is comprised of unrealized holding gains (losses) on the available-for-sale securities portfolio and unrecognized pension costs.
Change in Accounting Principal	Change in Accounting Principal On February 14, 2018, the Financial Accounting Standards Board finalized ASU 2018-02 - Income Statement-Reporting Comprehensive Income (Topic 220). This accounting standard allows Companies to reclassify the "stranded" tax effect in accumulated other comprehensive income that resulted from the U.S. federal government enacted a tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act), which requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws. The Company has elected to early-adopt this accounting standard, which provides a benefit to the financial statements by more accurately aligning the impacts of the items carried in accumulated other comprehensive income with the associate tax effect. The adoption was applied on a modified retrospective and resulted in a one-time cumulative effect adjustment of $559,000 between Retained Earnings and Accumulated Other Comprehensive Income on the Consolidated Balance Sheet as of the beginning of the current period. The adjustment had no impact on Net Income or any prior periods presented.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including i In August 2015, the FASB issued ASU 2015-14, Revenue from Contract with Customers Topic 606 In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity's other deferred tax assets. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. For all other entities, including not-for-profit entities and employee benefit plans within the scope of Topics 960 through 965 on plan accounting, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. All entities that are not public business entities may adopt th In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application In March 2016, the FASB issued ASU 2016-08, 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, 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 In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management's current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. I Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 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 2016-18, Statement of Cash Flows (Topic 230) In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business "ASU 2017-01", which provides a more robust framework to use in determining when a set of assets and activities (collectively referred to as a "set") is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated. Public business 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 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). In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) Debt—Debt with Conversion and Other Options In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) I n January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) , which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date the entity adopts Topic 842; otherwise, an entity should evaluate all existing or expired land
Treasury Stock	The purchase of the Company's common stock is recorded at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a last-in-first-out basis.
Cash Flows	Cash Flows The Company utilizes the net reporting of cash receipts and cash payments for deposit, short-term borrowing and lending activities. The Company considers amounts due from banks and interest-bearing deposits in banks as cash equivalents.
Trust Assets and Income	Trust Assets and Income Assets held by the Company in a fiduciary or agency capacity for its customers are not included in the consolidated financial statements since such items are not assets of the Company. In accordance with industry practice, fees are recorded on the cash basis and approximate the fees which would have been recognized on the accrual basis.
Earnings Per Share	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. 2017 2016 2015 Basic earnings per share computation: Net income applicable to common stock $ 13,025,000 $ 12,638,000 $ 11,626,000 Weighted average common shares outstanding 3,481,366 3,507,497 3,229,470 Earnings per share - basic $ 3.74 $ 3.60 $ 3.60 Diluted earnings per share computation: Net income applicable to common stock $ 13,025,000 $ 12,638,000 $ 11,626,000 Weighted average common shares outstanding for basic earnings per share 3,481,366 3,507,497 3,229,470 Add: Dilutive effects of restricted stock 1,724 1,556 1,360 Weighted average common shares outstanding for dilutive earnings per share 3,483,090 3,509,053 3,230,830 Earnings per share - dilutive $ 3.74 $ 3.60 $ 3.60 Nonvested shares of restricted stock totaling 3,403, 3,087 and 2,105 were outstanding during 2017, 2016 and 2015, respectively, but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive. These anti-dilutive shares had per share prices ranging from $46.69-$53.15, $46.69-$53.15 and $50.15-$53.15 for 2017, 2016 and 2015, respectively.
Reclassification	Reclassification Certain of the prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no effect on net income or stockholders' equity.

SUMMARY OF SIGNIFICANT ACCOUN31

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [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. 2017 2016 2015 Basic earnings per share computation: Net income applicable to common stock $ 13,025,000 $ 12,638,000 $ 11,626,000 Weighted average common shares outstanding 3,481,366 3,507,497 3,229,470 Earnings per share - basic $ 3.74 $ 3.60 $ 3.60 Diluted earnings per share computation: Net income applicable to common stock $ 13,025,000 $ 12,638,000 $ 11,626,000 Weighted average common shares outstanding for basic earnings per share 3,481,366 3,507,497 3,229,470 Add: Dilutive effects of restricted stock 1,724 1,556 1,360 Weighted average common shares outstanding for dilutive earnings per share 3,483,090 3,509,053 3,230,830 Earnings per share - dilutive $ 3.74 $ 3.60 $ 3.60

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2017
INVESTMENT SECURITIES [Abstract]
Summary of amortized cost and fair value of investment securities	The amortized cost, gross unrealized gains and losses, and fair value of investment securities at December 31, 2017 and 2016 were as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair 2017 Cost Gains Losses Value Available-for-sale securities: U.S. Agency securities $ 99,454 $ 26 $ (593 ) $ 98,887 U.S. Treasuries 28,782 - (178 ) 28,604 Obligations of state and political subdivisions 78,409 820 (139 ) 79,090 Corporate obligations 3,000 83 - 3,083 Mortgage-backed securities in government sponsored entities 45,385 19 (377 ) 45,027 Equity securities in financial institutions 92 - (1 ) 91 Total available-for-sale securities $ 255,122 $ 948 $ (1,288 ) $ 254,782 Gross Gross Amortized Unrealized Unrealized Fair 2016 Cost Gains Losses Value Available-for-sale securities: U.S. Agency securities $ 170,276 $ 407 $ (269 ) $ 170,414 U.S. Treasuries 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, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at December 31, 2017 and 2016 (in thousands). As of December 31, 2017, the Company owned 122 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 2017 Value Losses Value Losses Value Losses U.S. Agency securities $ 74,952 $ (421 ) $ 16,928 $ (172 ) $ 91,880 $ (593 ) U.S. Treasuries 28,604 (178 ) - - 28,604 (178 ) Obligations of states and political subdivisions 14,885 (85 ) 5,958 (54 ) 20,843 (139 ) Mortgage-backed securities in government sponsored entities 27,154 (190 ) 13,822 (187 ) 40,976 (377 ) Equity securities in financial institutions 91 (1 ) - - 91 (1 ) Total securities $ 145,686 $ (875 ) $ 36,708 $ (413 ) $ 182,394 $ (1,288 ) 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	Gross gains and gross losses were realized as follows (in thousands): 2017 2016 2015 Gross gains $ 1,205 $ 312 $ 440 Gross losses (170 ) (57 ) (11 ) Net (losses) gains $ 1,035 $ 255 $ 429
Summary of amortized cost and fair value of debt securities by contractual maturity	The amortized cost and fair value of debt securities at December 31, 2017, by contractual maturity are shown below (in thousands). Municipal securities that have been refunded and will therefore pay-off on the call date are reflected in the table below utilizing the call date as the date of repayment as payment is guaranteed on that day: Amortized Cost Fair Value Available-for-sale securities: Due in one year or less $ 45,328 $ 45,369 Due after one year through five years 118,597 118,331 Due after five years through ten years 31,687 31,676 Due after ten years 59,418 59,315 Total $ 255,030 $ 254,691

LOANS AND RELATED ALLOWANCE F33

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Tables)	12 Months Ended
	Dec. 31, 2017
LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES [Abstract]
Summary of loan portfolio and allowance for loan losses	The following table summarizes the primary segments of the loan portfolio, as well as how those segments are analyzed within the allowance for loan losses as of December 31, 2017 and 2016 (in thousands): 2017 Total Loans Individually evaluated for impairment Loans acquired with deteriorated credit quality Collectively evaluated for impairment Real estate loans: Residential $ 214,479 $ 1,065 $ 33 $ 213,381 Commercial 308,084 13,864 1,460 292,760 Agricultural 239,957 3,901 702 235,354 Construction 13,502 - - 13,502 Consumer 9,944 8 - 9,936 Other commercial loans 72,013 4,197 443 67,373 Other agricultural loans 37,809 1,363 - 36,446 State and political subdivision loans 104,737 - - 104,737 Total 1,000,525 24,398 2,638 973,489 Allowance for loan losses 11,190 410 - 10,780 Net loans $ 989,335 $ 23,988 $ 2,638 $ 962,709 2016 Real estate loans: Residential $ 207,423 $ 957 $ 35 $ 206,431 Commercial 252,577 5,742 1,969 244,866 Agricultural 123,624 3,347 738 119,539 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 1,653 - 21,735 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 amortizable yield for PCI loans were as follows for the years ended December 31, 2017 and 2016 (in thousands): December 31, 2017 December 31, 2016 Balance at beginning of period $ 389 $ 637 Accretion (632 ) (349 ) Reclassification of non-accretable discount 349 101 Balance at end of period $ 106 $ 389
Loans acquired with specific evidence of deterioration in credit quality	The following table presents additional information regarding PCI loans (in thousands): December 31, 2017 December 31, 2016 Outstanding balance $ 5,295 $ 6,487 Carrying amount 2,638 3,367
Impaired financing receivables with associated allowance amount	Recorded Recorded Unpaid Investment Investment Total Principal With No With Recorded Related 2017 Balance Allowance Allowance Investment Allowance Real estate loans: Mortgages $ 1,055 $ 273 $ 700 $ 973 $ 47 Home Equity 92 40 52 92 9 Commercial 16,363 13,154 710 13,864 94 Agricultural 5,231 3,283 618 3,901 3 Consumer 10 2 6 8 - Other commercial loans 4,739 3,766 431 4,197 231 Other agricultural loans 1,397 1,238 125 1,363 26 Total $ 28,887 $ 21,756 $ 2,642 $ 24,398 $ 410 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 Other commercial loans 6,159 5,135 859 5,994 326 Other agricultural loans 1,653 1,629 24 1,653 30 Total $ 20,127 $ 15,031 $ 2,662 $ 17,693 $ 487 The following table includes the average investment in impaired loans and the income recognized on impaired loans for 2017, 2016 and 2015 (in thousands): Interest Average Interest Income Recorded Income Recognized 2017 Investment Recognized Cash Basis Real estate loans: Mortgages $ 900 $ 13 $ - Home Equity 67 4 - Commercial 11,567 385 7 Agricultural 3,574 131 - Consumer 3 - - Other commercial loans 4,790 152 52 Other agricultural loans 1,491 65 - Total $ 22,392 $ 750 $ 59 2016 Real estate loans: Mortgages $ 590 $ 13 $ - Home Equity 59 4 - Commercial 5,959 69 1 Agricultural 361 17 - Consumer - - - Other commercial loans 5,715 87 6 Other agricultural loans 190 11 - Total $ 12,874 $ 201 $ 7 Interest Average Interest Income Recorded Income Recognized 2015 Investment Recognized Cash Basis Real estate loans: Mortgages $ 240 $ 12 $ - Home Equity 88 4 - Commercial 5,683 63 5 Agricultural 56 2 - Consumer - - - Other commercial loans 2,700 98 6 Other agricultural loans 37 1 - Total $ 8,804 $ 180 $ 11
Summary of financing receivable credit exposures by internally assigned grades	2017 Pass Special Mention Substandard Doubtful Loss Ending Balance Real estate loans: Commercial $ 281,742 $ 15,029 $ 11,271 $ 42 $ - $ 308,084 Agricultural 222,198 11,538 6,221 - - 239,957 Construction 13,364 - 138 - - 13,502 Other commercial loans 67,706 615 3,567 125 - 72,013 Other agricultural loans 34,914 1,325 1,570 - - 37,809 State and political subdivision loans 94,125 - 10,612 - - 104,737 Total $ 714,049 $ 28,507 $ 33,379 $ 167 $ - $ 776,102 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 equities 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. The following table presents the recorded investment in those loan classes based on payment activity as of December 31, 2017 and 2016 ( in thousands) 2017 Performing Non-performing PCI Total Real estate loans: Mortgages $ 152,820 $ 1,492 $ 33 $ 154,345 Home Equity 60,022 112 - 60,134 Consumer 9,895 49 - 9,944 Total $ 222,737 $ 1,653 $ 33 $ 224,423 2016 Performing Non-performing PCI Total 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
Age analysis of past due financing receivables	The following table includes an aging analysis of the recorded investment of past due loans as of December 31, 2017 and 2016 (in thousands): 30-59 Days 60-89 Days 90 Days Total Past Total Financing 90 Days and 2017 Past Due Past Due Or Greater Due Current PCI Receivables Accruing Real estate loans: Mortgages $ 996 $ 362 $ 810 $ 2,168 $ 152,144 $ 33 $ 154,345 $ 218 Home Equity 277 86 78 441 59,693 - 60,134 - Commercial 1,353 1,010 3,865 6,228 300,396 1,460 308,084 162 Agricultural 242 - 205 447 238,808 702 239,957 30 Construction - - 133 133 13,369 - 13,502 - Consumer 53 33 49 135 9,809 - 9,944 7 Other commercial loans 132 - 2,372 2,504 69,066 443 72,013 32 Other agricultural loans - 42 106 148 37,661 - 37,809 106 State and political subdivision loans - - - - 104,737 - 104,737 - Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 $ 555 Loans considered non-accrual $ 816 $ 281 $ 7,063 $ 8,160 $ 2,011 $ - $ 10,171 Loans still accruing 2,237 1,252 555 4,044 983,672 2,638 990,354 Total $ 3,053 $ 1,533 $ 7,618 $ 12,204 $ 985,683 $ 2,638 $ 1,000,525 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	2017 2016 Real estate loans: Mortgages $ 1,274 $ 1,475 Home Equity 112 95 Commercial 5,192 4,445 Agricultural 175 1,340 Construction 133 - Consumer 42 42 Other commercial loans 2,637 4,057 Other agricultural loans 606 - $ 10,171 $ 11,454
Summary of troubled debt restructurings on financing receivables	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: Home Equity - 1 $ - $ 25 $ - $ 25 Commercial - 5 - 7,021 - 7,021 Agricultural - 4 - 1,475 - 1,475 Other commercial loans - 1 - 9 - 9 Other agricultural loans - 1 - 161 - 161 Total - 12 $ - $ 8,691 $ - $ 8,691 Real estate loans: Commercial - 4 $ - $ 1,188 $ - $ 1,188 Agricultural - 5 - 1,956 - 1,956 Other commercial loans - 3 - 3,076 - 3,076 Other agricultural loans - 7 - 1,558 - 1,558 Total - 19 $ - $ 7,778 $ - $ 7,778 Real estate loans: Mortgages 1 1 $ 71 $ 19 $ 71 $ 19 Total 1 1 $ 71 $ 19 $ 71 $ 19 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. The following table presents the recorded investment in loans that were modified as TDRs during each 12-month period prior to the current reporting periods, which begin January 1, 2017, 2016 and 2015, respectively, and that subsequently defaulted during these reporting periods (dollars in thousands): December 31, 2017 December 31, 2016 December 31, 2015 Number of contracts Recorded investment Number of contracts Recorded investment Number of contracts Recorded investment Other agricultural loans 2 $ 632 - $ - - $ - Total recidivism 2 $ 632 - $ - - $ -
Roll forward of allowance for loan losses by portfolio segment	The following tables roll forward the balance of the allowance for loan and lease losses for the years ended December 31, 2017, 2016 and 2015 and is segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of December 31, 2017, 2016 and 2015 (in thousands): Balance at December 31, 2016 Charge-offs Recoveries Provision (Benefit) Balance at December 31, 2017 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 1,064 $ (107 ) $ - $ 92 $ 1,049 $ 56 $ 993 Commercial 3,589 (41 ) 11 308 3,867 94 3,773 Agricultural 1,494 (30 ) - 1,679 3,143 3 3,140 Construction 47 - - (24 ) 23 - 23 Consumer 122 (130 ) 49 83 124 - 124 Other commercial loans 1,327 - 16 (71 ) 1,272 231 1,041 Other agricultural loans 312 (5 ) 1 184 492 26 466 State and political subdivision loans 833 - - (17 ) 816 - 816 Unallocated 98 - - 306 404 - 404 Total $ 8,886 $ (313 ) $ 77 $ 2,540 $ 11,190 $ 410 $ 10,780 Balance at December 31, 2015 Charge-offs Recoveries Provision (Benefit) Balance at December 31, 2016 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 905 $ (85 ) $ - $ 244 $ 1,064 $ 32 $ 1,032 Commercial 3,376 (100 ) 479 (166 ) 3,589 45 3,544 Agricultural 409 - - 1,085 1,494 54 1,440 Construction 24 - - 23 47 - 47 Consumer 102 (100 ) 88 32 122 - 122 Other commercial loans 1,183 (55 ) 33 166 1,327 326 1,001 Other agricultural loans 122 - - 190 312 30 282 State and political subdivision loans 593 - - 240 833 - 833 Unallocated 392 - - (294 ) 98 - 98 Total $ 7,106 $ (340 ) $ 600 $ 1,520 $ 8,886 $ 487 $ 8,399 Balance at December 31, 2014 Charge-offs Recoveries Provision (Benefit) Balance at December 31, 2015 Individually evaluated for impairment Collectively evaluated for impairment Real estate loans: Residential $ 878 $ (66 ) $ - $ 93 $ 905 $ 37 $ 868 Commercial 3,419 (84 ) 14 27 3,376 62 3,314 Agricultural 451 - - (42 ) 409 409 Construction 26 - - (2 ) 24 - 24 Consumer 84 (47 ) 33 32 102 - 102 Other commercial loans 1,007 (41 ) 2 215 1,183 256 927 Other agricultural loans 217 - - (95 ) 122 122 State and political - subdivision loans 545 - - 48 593 - 593 Unallocated 188 - - 204 392 - 392 Total $ 6,815 $ (238 ) $ 49 $ 480 $ 7,106 $ 355 $ 6,751

PREMISES & EQUIPMENT (Tables)

PREMISES & EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2017
PREMISES & EQUIPMENT [Abstract]
Summary of premises and equipment	Premises and equipment at December 31, 2017 and 2016 are summarized as follows (in thousands): December 31, 2017 2016 Land $ 5,110 $ 5,110 Buildings 17,402 17,315 Furniture, fixtures and equipment 6,698 6,678 Construction in process 16 5 29,226 29,108 Less: accumulated depreciation 12,703 12,078 Premises and equipment, net $ 16,523 $ 17,030

GOODWILL AND OTHER INTANGIBLE35

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 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 December 31, 2017 and 2016 (in thousands): December 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 $ 1,605 $ (912 ) $ 693 $ 1,471 $ (787 ) $ 684 Core deposit intangibles 1,786 (586 ) 1,200 1,641 (320 ) 1,321 Covenant not to compete 125 (65 ) 60 125 (34 ) 91 Total amortized intangible assets $ 3,516 $ (1,563 ) $ 1,953 $ 3,237 $ (1,141 ) $ 2,096 Unamortized intangible assets: Goodwill $ 23,296 $ 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 the next five years of amortized intangible assets (in thousands). We based our projections of amortization expense shown below on existing asset balances at December 31, 2017. Future amortization expense may vary from these projections: MSRs Core deposit intangibles Covenant not to compete Total Year ended December 31, 2017 (actual) $ 177 $ 266 $ 31 $ 474 Estimate for year ended December 31, 2018 184 265 31 480 2019 148 230 29 407 2020 115 197 - 312 2021 88 165 - 253 2022 64 133 - 197

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2017
DEPOSITS [Abstract]
Summary of deposits	The following table shows the breakdown of deposits as of December 31, 2017 and 2016, by deposit type (in thousands): 2017 2016 Non-interest-bearing deposits $ 171,840 $ 147,425 NOW accounts 337,307 305,862 Savings deposits 184,057 170,722 Money market deposit accounts 145,287 116,880 Certificates of deposit 266,452 264,614 Total $ 1,104,943 $ 1,005,503
Maturities of certificates of deposit	Following are maturities of certificates of deposit as of December 31, 2017 (in thousands): 2018 $ 107,591 2019 51,071 2020 56,515 2021 24,390 2022 20,870 Thereafter 6,015 Total certificates of deposit $ 266,452

BORROWED FUNDS AND REPURCHASE37

BORROWED FUNDS AND REPURCHASE AGREEMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
BORROWED FUNDS AND REPURCHASE AGREEMENTS [Abstract]
Borrowed funds	The following table shows the breakdown of borrowed funds as of December 31, 2017 and 2016, (dollars in thousands): Securities Sold Under Total Agreements to FHLB Federal Funds FRB Notes Term Borrowed Repurchase(a) Advances(b) Line (c) BIC Line (d) Payable(e) Loans(f) Funds 2017 Balance at December 31 $ 14,989 $ 77,650 $ - $ - $ 7,500 $ 14,525 $ 114,664 Highest balance at any month-end 16,643 78,858 - - 7,500 16,525 119,526 Average balance 15,598 29,409 1 2 7,500 16,026 68,536 Weighted average interest rate: Paid during the year 0.97 % 1.25 % 1.52 % 1.75 % 4.06 % 2.44 % 1.77 % As of year-end 1.37 % 1.54 % 0.00 % 0.00 % 4.40 % 2.42 % 1.82 % 2016 Balance at December 31 $ 14,307 $ 41,330 $ - $ - $ 7,500 $ 16,525 $ 79,662 Highest balance at any month-end 16,132 45,125 - - 7,500 16,525 85,282 Average balance 15,057 7,917 2 3 7,500 16,525 47,004 Weighted average interest rate: Paid during the year 0.49 % 0.63 % 0.76 % 1.00 % 3.55 % 2.44 % 1.69 % As of year-end 0.67 % 0.74 % 0.00 % 0.00 % 3.79 % 2.44 % 1.36 %
Remaining contractual maturity of the repurchase agreements	The collateral pledged on the repurchase agreements by the remaining contractual maturity of the repurchase agreements in the Consolidated Balance Sheets as of December 31 , 2017 December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than 2017 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,027 $ - $ - $ 2,035 Total carrying value of collateral pledged $ 16,027 $ - $ - $ 2,035 $ 18,062 Total liability recognized for repurchase agreements $ 14,989 Remaining Contractual Maturity of the Agreements Overnight and Up to Greater than 2016 Continuous 30 Days 30 - 90 Days 90 days Total Repurchase Agreements: U.S. agency securities $ 16,118 $ - $ - $ 2,059 Total carrying value of collateral pledged $ 16,118 $ - $ - $ 2,059 $ 18,177 Total liability recognized for repurchase agreements $ 14,307
Federal Home Loan Bank loans by branch	Term Loans consist of separate loans with the FHLB of Pittsburgh as follows (in thousands): December 31, December 31, Interest Rate Maturity 2017 2016 Fixed: 2.29 % October 2, 2017 2,000 2.72 % July 12, 2018 1,000 1,000 1.87 % February 4, 2019 2,000 2,000 2.61 % February 3, 2021 2,000 2,000 3.52 % July 12, 2021 2,000 2,000 2.37 % August 20, 2021 2,800 2,800 2.08 % January 6, 2022 4,725 4,725 Total term loans $ 14,525 $ 16,525
Maturities of borrowed funds	Following are maturities of borrowed funds as of December 31, 2017 (in thousands): 2018 $ 100,025 2019 2,000 2020 580 2021 7,334 2022 4,725 Thereafter - Total borrowed funds $ 114,664

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2017
EMPLOYEE BENEFIT PLANS [Abstract]
Obligation and net funded status	2017 2016 Change in benefit obligation Benefit obligation at beginning of year $ 18,603 $ 17,809 Service cost 349 345 Interest cost 671 692 Actuarial (Gain) / Loss 1,015 439 Benefits paid (805 ) (682 ) Benefit obligation at end of year 19,833 18,603 Change in plan assets Fair value of plan assets at beginning of year 15,786 14,786 Actual return (loss) on plan assets 2,011 864 Employer contribution 3,000 818 Benefits paid (805 ) (682 ) Fair value of plan assets at end of year 19,992 15,786 Funded status $ 159 $ (2,817 )
Components of net periodic pension cost not yet recognized	Amounts not yet recognized as a component of net periodic pension cost as of December 31 (in thousands): Amounts recognized in accumulated other comprehensive loss consists of: 2017 2016 Net loss $ 4,088 $ 4,263 Prior service cost (127 ) (175 ) Total $ 3,961 $ 4,088
Components of net periodic benefit costs	2017 2016 2015 Service cost $ 349 $ 345 $ 352 Interest cost 671 692 424 Return on plan assets (1,094 ) (1,034 ) (791 ) Net amortization and deferral 224 219 205 Net periodic benefit cost $ 150 $ 222 $ 190
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost (income)	The weighted-average assumptions used to determine benefit obligations at December 31, 2017 and 2016 is summarized in the following table. The change in the discount rate is the primary driver of the actuarial loss that occurred in 2017 of $1,015,000. 2017 2016 Discount rate 3.35% 3.78% Rate of compensation increase 3.00% 3.00% The weighted-average assumptions used to determine net periodic benefit cost (income) for the year ended December 31: 2017 2016 2015 Discount rate 3.78% 3.94% 3.61% Expected long-term return on plan assets 7.00% 7.00% 7.00% Rate of compensation increase 3.00% 3.00% 3.00%
Fair value of plan assets	The following table sets forth by level, within the fair value hierarchy as defined in footnote 17, the Plan's assets at fair value as of December 31, 2016 and 2017 (in thousands): 2017 Level I Level II Level III Total Allocation Assets Cash and cash equivalents $ 3,827 $ - $ - $ 3,827 19.1 % Equity Securities 6,018 - - 6,018 30.1 % Mutual Funds and ETF's 6,090 - - 6,090 30.5 % Corporate Bonds - 3,469 - 3,469 17.4 % Municipal Bonds 105 105 0.5 % U.S. Agency Securities - 483 - 483 2.4 % Certificate of deposit - - - - 0.0 % Total $ 15,935 $ 4,057 $ - $ 19,992 100.0 % 2016 Level I Level II Level III Total Allocation Assets Cash and cash equivalents $ 863 $ - $ - $ 863 5.5 % Equity securities 5,404 - - 5,404 34.1 % Mutual funds and ETF's 5,235 - - 5,235 33.2 % Corporate bonds - 3,641 - 3,641 23.1 % Municipal bonds 107 107 0.7 % U.S. Agency securities - 536 - 536 3.4 % Total $ 11,502 $ 4,284 $ - $ 15,786 100.0 %
Expected future benefit payments	Expected future benefit payments that the Bank estimates from its pension plan are as follows (in thousands): 2018 $ 629 2019 1,896 2020 1,599 2021 1,421 2022 843 2023 - 2027 7,805
Schedule of vesting, awarding and forfeiting of restricted shares	2017 Weighted Average Shares Market Price Outstanding, beginning of year 8,471 $ 49.10 Granted 4,482 53.84 Forfeited (43 ) 48.56 Vested (4,127 ) 49.78 Outstanding, end of year 8,783 $ 51.20

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
INCOME TAXES [Abstract]
Provision for income taxes	The provision for income taxes consists of the following (in thousands): Year Ended December 31, 2017 2016 2015 Currently payable $ 4,583 $ 2,672 $ 2,913 Change in corporate tax rate 1,531 - - Deferred tax (83 ) 362 (192 ) Provision for income taxes $ 6,031 $ 3,034 $ 2,721
Deferred tax assets and liabilities	The following temporary differences gave rise to the net deferred tax asset and liabilities at December 31, 2017 and 2016, respectively (in thousands): 2017 2016 Deferred tax assets: Allowance for loan losses $ 3,058 $ 4,518 Deferred compensation 464 757 Merger & acquisition costs 7 16 Allowance for losses on available-for-sale securities 6 250 Pension and other retirement obligation 297 1,454 Interest on non-accrual loans 917 1,259 Incentive plan accruals 324 421 Other real estate owned 108 152 Unrealized losses on available-for-sale securities 71 - Low income housing tax credits 64 94 NOL carry forward 339 709 AMT Credit Carryforward 8 8 Other 117 156 Total $ 5,780 $ 9,794 Deferred tax liabilities: Premises and equipment $ (623 ) $ (998 ) Investment securities accretion (66 ) (189 ) Loan fees and costs (257 ) (369 ) Goodwill and core deposit intangibles (2,200 ) (3,573 ) Mortgage servicing rights (146 ) (233 ) Unrealized gains on available-for-sale securities - (673 ) Other (7 ) (17 ) Total (3,299 ) (6,052 ) Deferred tax asset, net $ 2,481 $ 3,742
Reconciliation of statutory tax rates to effective tax rates	Year Ended December 31, 2017 2016 2015 Provision at statutory rates on pre-tax income $ 6,505 $ 5,328 $ 4,878 Effect of tax-exempt income (1,710 ) (1,943 ) (1,915 ) Low income housing tax credits (141 ) (198 ) (198 ) Bank owned life insurance (225 ) (234 ) (214 ) Nondeductible interest 54 55 61 Nondeductible merger and acquisition expenses - - 102 Change in tax rate 1,531 - - Other items 17 26 7 Provision for income taxes $ 6,031 $ 3,034 $ 2,721 Statutory tax rates 34 % 34 % 34 % Effective tax rates 31.6 % 19.4 % 19.0 %

OTHER COMPREHENSIVE INCOME (Tab

OTHER COMPREHENSIVE INCOME (Tables)	12 Months Ended
	Dec. 31, 2017
OTHER COMPREHENSIVE INCOME [Abstract]
Components of accumulated other comprehensive loss, net of tax	The components of accumulated other comprehensive loss, net of tax, as of December 31, were as follows (in thousands): 2017 2016 Net unrealized gain on securities available for sale $ (340 ) $ 1,979 Tax effect 71 (673 ) Net -of-tax amount (269 ) 1,306 Unrecognized pension costs (3,961 ) (4,088 ) Tax effect 832 1,390 Net -of-tax amount (3,129 ) (2,698 ) Total accumulated other comprehensive income $ (3,398 ) $ (1,392 ) The following tables present the changes in accumulated other comprehensive loss by component net of tax for the years ended December 31, 2017, 2016 and 2015 (in thousands): Unrealized gain (loss) on available for sale securities (a) Defined Benefit Pension Items (a) Total Balance as of December 31, 2014 $ 3,093 $ (2,326 ) $ 767 Other comprehensive income (loss) before reclassifications (net of tax) (606 ) (249 ) (855 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (283 ) 135 (148 ) Net current period other comprehensive income (loss) (889 ) (114 ) (1,003 ) Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Balance as of December 31, 2015 $ 2,204 $ (2,440 ) $ (236 ) Other comprehensive income (loss) before reclassifications (net of tax) (730 ) (403 ) (1,133 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (168 ) 145 (23 ) Net current period other comprehensive income (loss) (898 ) (258 ) (1,156 ) Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Balance as of December 31, 2016 $ 1,306 $ (2,698 ) $ (1,392 ) Other comprehensive income (loss) before reclassifications (net of tax) (847 ) (65 ) (912 ) Amounts reclassified from accumulated other comprehensive income (loss) (net of tax) (683 ) 148 (535 ) Net current period other comprehensive income (loss) (1,530 ) 83 (1,447 ) Change in other comprehensive income due to change in the federal tax rate (45 ) (514 ) (559 ) Balance as of December 31, 2017 $ (269 ) $ (3,129 ) $ (3,398 ) (a) Amounts in parentheses indicate debits on the Consolidated Balance Sheet.
Schedule of the significant amounts reclassified out of each component of accumulated other comprehensive loss	The following table presents the significant amounts reclassified out of each component of accumulated other comprehensive loss for the years ended December 31, 2017, 2016 and 2015: Details about accumulated other comprehensive income (loss) Amount reclassified from accumulated comprehensive income (loss) (a) Affected line item in the Consolidated Statement of Income December 31, 2017 2016 2015 Unrealized gains and losses on available for sale securities $ 1,035 $ 255 $ 429 Investment securities gains, net (352 ) (87 ) (146 ) Provision for income taxes $ 683 $ 168 $ 283 Net of tax Defined benefit pension items $ (224 ) $ (219 ) $ (205 ) Salaries and employee benefits 76 74 70 Provision for income taxes $ (148 ) $ (145 ) $ (135 ) Net of tax Total reclassifications $ 535 $ 23 $ 148 (a) Amounts in parentheses indicate debits

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
RELATED PARTY TRANSACTIONS [Abstract]
Summary of loan activity with officers, directors, stockholders and associates	A summary of loan activity for the years ended December 31, 2017 and 2016 with officers, directors, stockholders and associates of such persons is listed below (in thousands): Year Ended December 31, 2017 2016 Balance, beginning of year $ 5,570 $ 5,343 New loans 4,161 4,512 Repayments (5,146 ) (4,285 ) Balance, end of year $ 4,585 $ 5,570

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2017
REGULATORY MATTERS [Abstract]
Capital ratios under banking regulations	Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions 2017 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets): Company $ 128,578 13.20 % $ 77,906 8.00 % $ 97,383 10.00 % Bank $ 122,469 12.58 % $ 77,852 8.00 % $ 97,315 10.00 % Tier 1 Capital (to Risk Weighted Assets): Company $ 117,224 12.04 % $ 58,430 6.00 % $ 77,906 8.00 % Bank $ 111,114 11.42 % $ 58,389 6.00 % $ 77,852 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets): Company $ 109,724 11.27 % $ 43,822 4.50 % $ 63,299 6.50 % Bank $ 111,114 11.42 % $ 43,792 4.50 % $ 63,255 6.50 % Tier 1 Capital (to Average Assets): Company $ 117,224 9.18 % $ 51,085 4.00 % $ 63,857 5.00 % Bank $ 111,114 8.71 % $ 51,023 4.00 % $ 63,778 5.00 % Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions 2016 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk Weighted Assets): Company $ 121,717 14.93 % $ 65,217 8.00 % $ 81,522 10.00 % Bank $ 117,537 14.46 % $ 65,020 8.00 % $ 81,275 10.00 % Tier 1 Capital (to Risk Weighted Assets): Company $ 112,599 13.81 % $ 48,913 6.00 % $ 65,217 8.00 % Bank $ 108,419 13.34 % $ 48,765 6.00 % $ 65,020 8.00 % Common Equity Tier 1 Capital (to Risk Weighted Assets): Company $ 105,099 12.89 % $ 36,685 4.50 % $ 52,989 6.50 % Bank $ 108,419 13.34 % $ 36,574 4.50 % $ 52,829 6.50 % Tier 1 Capital (to Average Assets): Company $ 112,599 9.46 % $ 47,586 4.00 % $ 59,483 5.00 % Bank $ 108,419 9.13 % $ 39,006 4.00 % $ 48,757 5.00 %

COMMITMENTS AND CONTINGENT LI43

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2017
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
Financial instruments whose contract amounts represent credit risk	Financial instruments, whose contract amounts represent credit risk at December 31, 2017 and 2016, are as follows (in thousands): 2017 2016 Commitments to extend credit $ 188,482 $ 206,505 Standby letters of credit 15,244 14,955 $ 203,726 $ 221,460

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	12 Months Ended
	Dec. 31, 2017
OPERATING LEASES [Abstract]
Future minimum rental payments under operating leases	The following schedule shows future minimum rental payments under operating leases with noncancellable terms in excess of one year as of December 31, 2017 ( in thousands): 2018 $ 324 2019 327 2020 219 2021 171 2022 158 Thereafter 141 Total $ 1,340

FAIR VALUE OF FINANCIAL INSTR45

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2017
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Summary of assets measured at fair value on a recurring basis	2017 Level I Level II Level III Total Fair value measurements on a recurring basis: Securities available for sale: U.S. Agency securities $ - $ 98,887 $ - $ 98,887 U.S. Treasuries securities 28,604 - - 28,604 Obligations of state and political subdivisions - 79,090 - 79,090 Corporate obligations - 3,083 - 3,083 Mortgage-backed securities in government sponsored entities - 45,027 - 45,027 Equity securities in financial institutions 91 - - 91 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	2017 Level I Level II Level III Total Impaired Loans $ - $ - $ 1,569 $ 1,569 Other real estate owned - - 1,024 1,024 2016 Level I Level II Level III Total 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 3 Fair Value Measurements 2017 Fair Value Valuation Technique(s) Unobservable input Range Weighted average Impaired Loans $ 1,569 Appraised Collateral Values Discount for time since appraisal 0-100 % 30.83 % Selling costs 5%-9 % 8.35 % Holding period 6 - 12 months 11 months Other real estate owned $ 1,024 Appraised Collateral Values Discount for time since appraisal 15-65 % 26.26 % 2016 Fair Value Valuation Technique(s) Unobservable input Range Weighted average 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 December 31, 2017 Amount Fair Value Level I Level II Level III Financial assets: Cash and due from banks $ 18,517 $ 18,517 $ 18,517 $ - $ - Interest bearing time deposits with other banks 10,283 10,287 - - 10,287 Available-for-sale securities 254,782 254,782 28,695 226,087 - Loans held for sale 1,439 1,439 1,439 Net loans 989,335 981,238 - - 981,238 Bank owned life insurance 26,883 26,883 26,883 - - Regulatory stock 6,784 6,784 6,784 - - Accrued interest receivable 4,196 4,196 4,196 - - Financial liabilities: Deposits $ 1,104,943 $ 1,101,583 $ 838,490 $ - $ 263,093 Borrowed funds 114,664 113,452 77,650 - 35,802 Accrued interest payable 897 897 897 - - Carrying December 31, 2016 Amount Fair Value Level I Level II Level III 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 -

CONDENSED FINANCIAL INFORMATI46

CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Tables)	12 Months Ended
	Dec. 31, 2017
CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY [Abstract]
Condensed financial information	The following is condensed financial information for Citizens Financial Services, Inc.: CITIZENS FINANCIAL SERVICES, INC. CONDENSED BALANCE SHEET December 31, (in thousands) 2017 2016 Assets: Cash $ 6,238 $ 2,245 Available-for-sale securities 91 2,735 Investment in subsidiary: First Citizens Community Bank 130,402 125,973 Other assets 369 564 Total assets $ 137,100 $ 131,517 Liabilities: Other liabilities $ 589 $ 749 Borrowed funds 7,500 7,500 Total liabilities 8,089 8,249 Stockholders' equity 129,011 123,268 Total liabilities and stockholders' equity $ 137,100 $ 131,517 CITIZENS FINANCIAL SERVICES, INC. CONDENSED STATEMENT OF INCOME Year Ended December 31, (in thousands) 2017 2016 2015 Dividends from: Bank subsidiary $ 7,507 $ 5,842 $ 5,582 Equity securities 60 92 71 Total income 7,567 5,934 5,653 Realized securities gains 1,021 31 76 Expenses 824 463 892 Income before equity in undistributed earnings of subsidiary 7,764 5,502 4,837 Equity in undistributed earnings - First Citizens Community Bank 5,261 7,136 6,789 Net income $ 13,025 $ 12,638 $ 11,626 Comprehensive income $ 11,578 $ 11,482 $ 10,623 CITIZENS FINANCIAL SERVICES, INC. CONDENSED STATEMENT OF CASH FLOWS Year Ended December 31, (in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 13,025 $ 12,638 $ 11,626 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (5,261 ) (7,136 ) (6,789 ) Investment securities gains, net (1,021 ) (31 ) (76 ) Other, net 629 230 322 Net cash provided by operating activities 7,372 5,701 5,083 Cash flows from investing activities: Purchases of available-for-sale securities (94 ) (1 ) (901 ) Proceeds from the sale of available-for-sale securities 2,828 201 113 Net cash provided by (used in) investing activities 2,734 200 (788 ) Cash flows from financing activities: Cash dividends paid (5,177 ) (5,081 ) (5,151 ) Purchase of treasury stock (979 ) (3,227 ) (2,455 ) Reissuance of treasury stock to employee stock purchase plan 43 59 - Purchase of restricted stock - - (7 ) Net cash used in financing activities (6,113 ) (8,249 ) (7,613 ) Net decrease in cash 3,993 (2,348 ) (3,318 ) Cash at beginning of year 2,245 4,593 7,911 Cash at end of year $ 6,238 $ 2,245 $ 4,593

CONSOLIDATED CONDENSED QUARTE47

CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) (Tables)	12 Months Ended
	Dec. 31, 2017
CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) [Abstract]
Consolidated condensed quarterly data	The following table presents summarized quarterly financial data for 2017 and 2016: (in thousands, except per share data) Three Months Ended, 2017 Mar 31 June 30 Sep 30 Dec 31 Interest income $ 11,300 $ 11,778 $ 12,120 $ 12,895 Interest expense 1,303 1,374 1,503 1,659 Net interest income 9,997 10,404 10,617 11,236 Provision for loan losses 615 625 500 800 Non-interest income 1,863 1,865 1,912 1,981 Investment securities gains, net 172 23 9 831 Non-interest expenses 7,191 7,166 7,247 7,710 Income before provision for income taxes 4,226 4,501 4,791 5,538 Provision for income taxes 923 1,033 1,141 2,934 Net income $ 3,303 $ 3,468 $ 3,650 $ 2,604 Earnings Per Share Basic $ 0.94 $ 1.00 $ 1.05 $ 0.75 Earnings Per Share Diluted $ 0.94 $ 1.00 $ 1.05 $ 0.75 Three Months Ended, 2016 Mar 31 June 30 Sep 30 Dec 31 Interest income $ 10,462 $ 10,426 $ 10,948 $ 11,169 Interest expense 1,257 1,255 1,236 1,293 Net interest income 9,205 9,171 9,712 9,876 Provision for loan losses 135 135 500 750 Non-interest income 1,889 1,855 1,908 1,992 Investment securities gains, net 27 128 - 100 Non-interest expenses 6,912 7,301 7,200 7,258 Income before provision for income taxes 4,074 3,718 3,920 3,960 Provision for income taxes 791 687 767 789 Net income $ 3,283 $ 3,031 $ 3,153 $ 3,171 Earnings Per Share Basic $ 0.93 $ 0.86 $ 0.90 $ 0.91 Earnings Per Share Diluted $ 0.93 $ 0.86 $ 0.90 $ 0.91

ACQUISITION OF FNB (Tables)

ACQUISITION OF FNB (Tables) - First National Bank of Fredericksburg [Member]	12 Months Ended
	Dec. 31, 2017
Business Acquisition [Line Items]
Summarizes the purchase of FNB	The following table summarizes the purchase of FNB as of December 11, 2015: (In Thousands, Except Per Share Data) Purchase Price Consideration in Common Stock Citizens Financial Services, Inc. shares issued 336,515 Value assigned to Citizens Financial Services, Inc. common share $ 47.50 Purchase price assigned to FNB common shares exchanged for Citizens Financial Services, Inc. $ 15,984 Purchase Price Consideration - Cash for Common Stock Purchase price assigned to The First National Bank of Fredericksburg common shares exchanged for cash 5,619 Total Purchase Price 21,603 Net Assets Acquired: The First National Bank of Fredericksburg shareholders' equity $ 12,298 Adjustments to reflect assets acquired at fair value: Loans Interest rate 31 General credit (1,362 ) Specific credit - non-amortizing (2,495 ) Specific credit - amortizing (665 ) Core deposit intangible 1,641 Covenant not to compete 125 Premises and equipment 1,203 Leased premises contracts (359 ) Other assets (358 ) Deferred tax assets 785 Adjustments to reflect liabilities acquired at fair value: Time deposits (74 ) 10,770 Goodwill resulting from merger $ 10,833
Schedule of asset acquired and liability assumed	The following condensed statement reflects the amounts recognized as of the acquisition date for each major class of asset acquired and liability assumed: (In Thousands) Total purchase price $ 21,603 Assets (liabilities) acquired: Cash and cash equivalents $ 83,514 Interest bearing time deposits with other banks 1,236 Securities available for sale 23,831 Loans 115,211 Premises and equipment, net 4,743 Accrued interest receivable 282 Bank-owned life insurance 4,598 Intangibles 1,981 Deferred tax asset 2,979 Other assets 2,332 Time deposits (42,675 ) Deposits other than time deposits (182,555 ) Accrued interest payable (14 ) Other liabilities (4,693 ) 10,770 Goodwill resulting from the FNB merger $ 10,833

ACQUISITION OF STATE COLLEGE 49

ACQUISITION OF STATE COLLEGE BRANCH (Tables) - State College Branch [Member]	12 Months Ended
	Dec. 31, 2017
Business Acquisition [Line Items]
Summarizes the purchase price of branch	(In Thousands) Purchase Price Consideration in cash $ 1,044 Net Assets Acquired for cash Loans, interest, PP&E less deposits, interest and escrow payable 3,509 Total cash consideration 4,553 Net Assets Acquired for cash $ 3,509 Adjustments to reflect assets acquired at fair value: Loans Interest rate (522 ) General credit (740 ) Core deposit intangible 145 Adjustments to reflect liabilities acquired at fair value: Time deposits (46 ) Acquired net assets at fair value 2,346 Goodwill resulting from acquisition $ 2,207
Schedule of asset acquired and liability assumed	The following condensed statement reflects the amounts recognized as of the acquisition date for each major class of asset acquired and liability assumed: (In Thousands) Total purchase price $ 4,553 Net assets acquired: Cash and cash equivalents $ 154 Loans 39,847 Premises and equipment, net 86 Accrued interest receivable 74 Intangibles 145 Deposits (37,880 ) Accrued interest payable (29 ) Other liabilities (51 ) 2,346 Goodwill resulting from the branch acquisition $ 2,207

SUMMARY OF SIGNIFICANT ACCOUN50

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended								12 Months Ended
	Dec. 31, 2017USD ($)Security$ / shares	Sep. 30, 2017USD ($)$ / shares	Jun. 30, 2017USD ($)$ / shares	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2016USD ($)$ / shares	Sep. 30, 2016USD ($)$ / shares	Jun. 30, 2016USD ($)$ / shares	Mar. 31, 2016USD ($)$ / shares	Dec. 31, 2018	Dec. 31, 2017USD ($)BranchesSegmentSecurity$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares
Business and Organization [Abstract]
Number of full service banking offices | Branches										26
Operating Segments [Abstract]
Number of operating segments | Segment										1
Cash and Cash Equivalents [Abstract]
Interest earning deposits maturity, Maximum for inclusion as cash equivalents										90 days
Investment Securities [Abstract]
Number of classifications of investment securities | Security	3									3
Held-to-maturity securities	$ 0				$ 0					$ 0	$ 0
Trading securities	0				0					$ 0	0
Number of years significantly below cost to recognize an impairment										1 year
Allowance for Loan Losses [Abstract]
Number of days past for loan to be considered impaired										90 days
Goodwill [Abstract]
Goodwill impairment loss										$ 0	0	$ 0
Bank Owned Life Insurance [Abstract]
Benefit in excess of the cash surrender value										50.00%
Obligation included in other liabilities	578,000				569,000					$ 578,000	$ 569,000
Income Tax Disclosure [Line Items]
Federal corporate tax rate										34.00%	34.00%	34.00%
Net deferred tax asset										$ 1,531,000
Reclassification of certain income tax effects from accumulated other comprehensive income										0
Advertising Costs [Abstract]
Advertising cost										343,000	$ 356,000	$ 243,000
Basic earnings per share computation [Abstract]
Net income applicable to common stock	$ 2,604,000	$ 3,650,000	$ 3,468,000	$ 3,303,000	$ 3,171,000	$ 3,153,000	$ 3,031,000	$ 3,283,000		$ 13,025,000	$ 12,638,000	$ 11,626,000
Weighted average common shares outstanding (in shares) | shares										3,481,366	3,507,497	3,229,470
Earnings per share - basic (in dollars per share) | $ / shares	$ 0.75	$ 1.05	$ 1	$ 0.94	$ 0.91	$ 0.90	$ 0.86	$ 0.93		$ 3.74	$ 3.60	$ 3.60
Diluted earnings per share computation [Abstract]
Net income applicable to common stock	$ 2,604,000	$ 3,650,000	$ 3,468,000	$ 3,303,000	$ 3,171,000	$ 3,153,000	$ 3,031,000	$ 3,283,000		$ 13,025,000	$ 12,638,000	$ 11,626,000
Weighted average common shares outstanding for basic earnings per share (in shares) | shares										3,481,366	3,507,497	3,229,470
Add: Dilutive effects of restricted stock (in shares) | shares										1,724	1,556	1,360
Weighted average common shares outstanding for dilutive earnings per share (in shares) | shares										3,483,090	3,509,053	3,230,830
Earnings per share - dilutive (in dollars per share) | $ / shares	$ 0.75	$ 1.05	$ 1	$ 0.94	$ 0.91	$ 0.90	$ 0.86	$ 0.93		$ 3.74	$ 3.60	$ 3.60
Minimum [Member]
Allowance for Loan Losses [Abstract]
Number of days past for loan to be considered impaired										90 days
Retained Earnings [Member]
Income Tax Disclosure [Line Items]
Reclassification of certain income tax effects from accumulated other comprehensive income										$ 559,000
Basic earnings per share computation [Abstract]
Net income applicable to common stock										13,025,000	$ 12,638,000	$ 11,626,000
Diluted earnings per share computation [Abstract]
Net income applicable to common stock										13,025,000	12,638,000	$ 11,626,000
Accumulated Other Comprehensive Income (Loss) [Member]
Income Tax Disclosure [Line Items]
Reclassification of certain income tax effects from accumulated other comprehensive income										(559,000)
Plan [Member]
Income Tax Disclosure [Line Items]
Federal corporate tax rate									21.00%
Plan [Member] | Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member]
Income Tax Disclosure [Line Items]
Cumulative effect adjustment from acumualted other comprehensive income to retained earnings	$ (1,000,000)									(1,000,000)
Plan [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accounting Standards Update 2016-01 [Member]
Income Tax Disclosure [Line Items]
Cumulative effect adjustment from acumualted other comprehensive income to retained earnings	1,000,000									1,000,000
Continuation of Life Insurance Plan [Member]
Bank Owned Life Insurance [Abstract]
Obligation included in other liabilities	$ 578,000				$ 569,000					$ 578,000	$ 569,000
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life										3 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life										15 years
Building Premises [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life										5 years
Building Premises [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life										40 years
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life										10 years
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Useful Life										4 years
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) | shares										3,403	3,087	2,105
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) | $ / shares										$ 46.69	$ 46.69	$ 50.15
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) | $ / shares										$ 53.15	$ 53.15	$ 53.15

RESTRICTIONS ON CASH AND DUE 51

RESTRICTIONS ON CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract]
Cash reserves at the Federal Reserve Bank	$ 2,645	$ 2,297
Cash FDIC insured amount, maximum	$ 250

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Security	Dec. 31, 2016USD ($)Security	Dec. 31, 2015USD ($)Security
Available for Sale Securities Amortized Cost, Gross Unrealized Gains or Losses and Fair Value [Abstract]
Amortized cost	$ 255,122	$ 312,039
Gross Unrealized Gains	948	3,087
Gross Unrealized Losses	(1,288)	(1,109)
Fair value	$ 254,782	314,017
Number of securities owned with fair value less than cost | Security	122
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	$ 145,686	106,062
Twelve months or greater, Fair value	36,708	1,520
Total, Fair value	182,394	107,582
Less than twelve months, Gross unrealized losses	(875)	(1,071)
Twelve months or greater, Gross unrealized losses	(413)	(38)
Total, Gross Unrealized Losses	(1,288)	(1,109)
Proceeds from sale of securities available-for-sale	58,177	22,372	$ 30,464
Realized investment gains (losses) [Abstract]
Gross gains	1,205	312	440
Gross losses	(170)	(57)	(11)
Net (losses) gains	1,035	255	429
Investment securities pledged as collateral	243,382	206,322
Available-for-Sale Debt Securities, Amortized Cost [Abstract]
Due in one year or less	45,328
Due after one year through five years	118,597
Due after five years through ten years	31,687
Due after ten years	59,418
Total	255,030
Available-for-Sale Debt Securities, Fair Value [Abstract]
Due in one year or less	45,369
Due after one year through five years	118,331
Due after five years through ten years	31,676
Due after ten years	59,315
Total	$ 254,691
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 or Losses and Fair Value [Abstract]
Amortized cost	$ 99,454	170,276
Gross Unrealized Gains	26	407
Gross Unrealized Losses	(593)	(269)
Fair value	98,887	170,414
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	74,952	50,947
Twelve months or greater, Fair value	16,928	0
Total, Fair value	91,880	50,947
Less than twelve months, Gross unrealized losses	(421)	(269)
Twelve months or greater, Gross unrealized losses	(172)	0
Total, Gross Unrealized Losses	(593)	(269)
Realized investment gains (losses) [Abstract]
Gross gains	$ 23	72	$ 196
Gross losses		$ (22)
Available-for-sale securities sold at a gross gain | Security	10	4	5
Available-for-sale securities sold at a gross loss | Security		4
U.S. Treasuries [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains or Losses and Fair Value [Abstract]
Amortized cost	$ 28,782	$ 2,999
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(178)	0
Fair value	28,604	3,000
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	28,604
Twelve months or greater, Fair value	0
Total, Fair value	28,604
Less than twelve months, Gross unrealized losses	(178)
Twelve months or greater, Gross unrealized losses	0
Total, Gross Unrealized Losses	(178)
Realized investment gains (losses) [Abstract]
Gross gains		$ 27
Gross losses	$ (170)		$ (11)
Available-for-sale securities sold at a gross gain | Security		2
Available-for-sale securities sold at a gross loss | Security	14		1
Obligations of State and Political Subdivisions [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains or Losses and Fair Value [Abstract]
Amortized cost	$ 78,409	$ 95,956
Gross Unrealized Gains	820	1,463
Gross Unrealized Losses	(139)	(493)
Fair value	79,090	96,926
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	14,885	28,398
Twelve months or greater, Fair value	5,958	767
Total, Fair value	20,843	29,165
Less than twelve months, Gross unrealized losses	(85)	(472)
Twelve months or greater, Gross unrealized losses	(54)	(21)
Total, Gross Unrealized Losses	(139)	(493)
Realized investment gains (losses) [Abstract]
Gross gains		$ 80	$ 99
Available-for-sale securities sold at a gross gain | Security		4	7
Interest-bearing Deposits [Member]
Realized investment gains (losses) [Abstract]
Gross gains	$ 13
Available-for-sale securities sold at a gross gain | Security	13
Corporate Obligations [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains or Losses and Fair Value [Abstract]
Amortized cost	$ 3,000	$ 3,000
Gross Unrealized Gains	83	50
Gross Unrealized Losses	0	0
Fair value	3,083	3,050
Realized investment gains (losses) [Abstract]
Gross losses		$ (35)
Available-for-sale securities sold at a gross loss | Security		6
Mortgage-backed Securities in Government Sponsored Entities [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains or Losses and Fair Value [Abstract]
Amortized cost	45,385	$ 37,987
Gross Unrealized Gains	19	88
Gross Unrealized Losses	(377)	(347)
Fair value	45,027	37,728
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	27,154	26,717
Twelve months or greater, Fair value	13,822	753
Total, Fair value	40,976	27,470
Less than twelve months, Gross unrealized losses	(190)	(330)
Twelve months or greater, Gross unrealized losses	(187)	(17)
Total, Gross Unrealized Losses	(377)	(347)
Realized investment gains (losses) [Abstract]
Gross gains	$ 20		$ 69
Available-for-sale securities sold at a gross gain | Security	1		5
Equity Securities in Financial Institutions [Member]
Available for Sale Securities Amortized Cost, Gross Unrealized Gains or Losses and Fair Value [Abstract]
Amortized cost	$ 92	1,821
Gross Unrealized Gains	0	1,078
Gross Unrealized Losses	(1)	0
Fair value	91	2,899
Available-For-Sale Securities, Fair Value and Gross Unrealized Losses [Abstract]
Less than twelve months, Fair value	91
Twelve months or greater, Fair value	0
Total, Fair value	91
Less than twelve months, Gross unrealized losses	(1)
Twelve months or greater, Gross unrealized losses	0
Total, Gross Unrealized Losses	(1)
Realized investment gains (losses) [Abstract]
Gross gains	$ 1,149	$ 133	$ 76
Available-for-sale securities sold at a gross gain | Security	5	3	1

LOANS AND RELATED ALLOWANCE F53

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 11, 2015
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			$ 1,000,525	$ 799,611
Individually evaluated for impairment			24,398	17,693
Loans acquired with deteriorated credit quality			2,638	3,367
Collectively evaluated for impairment			973,489	778,551
Allowance for loan losses			11,190	8,886
Allowance for loan losses related to individually evaluated for impairment			410	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			10,780	8,399
Net loans			989,335	790,725
Net loans, individually evaluated for impairment			23,988	17,206
Net loans, loans acquired with deteriorated credit quality			2,638	3,367
Net loans, collectively evaluated for impairment			962,709	770,152
Net unamortized loan fees and costs			794	732
Real estate loans serviced for Freddie Mac and Fannie Mae			142,972	135,404
Real estate loans sold to Freddie Mac and Fannie Mae without recourse	$ 114,643	$ 102,444
Portfolio balance under MPF			28,329	32,960
First-loss position for MPF maintained by FHLB			123
Credit enhancement for MPF by FHLB	$ 980
Number of days past for loan to be considered impaired, Minimum	90 days
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
Real Estate Loans [Member] | Residential [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			214,479	207,423
Individually evaluated for impairment			1,065	957
Loans acquired with deteriorated credit quality			33	35
Collectively evaluated for impairment			213,381	206,431
Real Estate Loans [Member] | Commercial [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			308,084	252,577
Individually evaluated for impairment			13,864	5,742
Loans acquired with deteriorated credit quality			1,460	1,969
Collectively evaluated for impairment			292,760	244,866
Real Estate Loans [Member] | Agricultural [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			239,957	123,624
Individually evaluated for impairment			3,901	3,347
Loans acquired with deteriorated credit quality			702	738
Collectively evaluated for impairment			235,354	119,539
Real Estate Loans [Member] | Construction [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			13,502	25,441
Individually evaluated for impairment			0	0
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			13,502	25,441
Consumer [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			9,944	11,005
Individually evaluated for impairment			8	0
Loans acquired with deteriorated credit quality			0	4
Collectively evaluated for impairment			9,936	11,001
Other Commercial Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			72,013	58,639
Individually evaluated for impairment			4,197	5,994
Loans acquired with deteriorated credit quality			443	621
Collectively evaluated for impairment			67,373	52,024
Other Agricultural Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			37,809	23,388
Individually evaluated for impairment			1,363	1,653
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			36,446	21,735
State and Political Subdivision Loans [Member]
Segments of loan portfolio and allowance for loan losses [Abstract]
Total financing receivables			104,737	97,514
Individually evaluated for impairment			0	0
Loans acquired with deteriorated credit quality			0	0
Collectively evaluated for impairment			104,737	97,514
First National Bank of Fredericksburg [Member]
Components of the purchase accounting adjustments related to the purchased impaired loans in FNB Acquisition [Abstract]
Estimated fair value					$ 3,809
Contractually required principal and interest at acquisition					9,913
Expected cash flows					4,474
Non-accretable discount					5,439
Accretable discount	$ 389	389	106	389	665
Changes in the accretable yield for purchased credit-impaired loans [Roll Forward]
Balance at beginning of period	389	637
Accretion	(632)	(349)
Reclassification of non-accretable discount	349	101
Balance at end of period	$ 106	$ 389
Loans acquired with specific evidence of deterioration in credit quality [Abstract]
Outstanding balance			5,295	6,487	$ 6,969
Carrying amount			$ 2,638	$ 3,367

LOANS AND RELATED ALLOWANCE F54

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Impaired Financing Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	$ 28,887	$ 20,127
Recorded Investment With No Allowance	21,756	15,031
Recorded Investment With Allowance	2,642	2,662
Total Recorded Investment	24,398	17,693
Related Allowance	410	487
Average Recorded Investment	22,392	12,874	$ 8,804
Interest Income Recognized	750	201	180
Interest Income Recognized Cash Basis	59	7	11
Real Estate Loans [Member] | Mortgages [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	1,055	953
Recorded Investment With No Allowance	273	570
Recorded Investment With Allowance	700	330
Total Recorded Investment	973	900
Related Allowance	47	22
Average Recorded Investment	900	590	240
Interest Income Recognized	13	13	12
Interest Income Recognized Cash Basis	0	0	0
Real Estate Loans [Member] | Home Equity [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	92	57
Recorded Investment With No Allowance	40	0
Recorded Investment With Allowance	52	57
Total Recorded Investment	92	57
Related Allowance	9	10
Average Recorded Investment	67	59	88
Interest Income Recognized	4	4	4
Interest Income Recognized Cash Basis	0	0	0
Real Estate Loans [Member] | Commercial [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	16,363	7,958
Recorded Investment With No Allowance	13,154	5,697
Recorded Investment With Allowance	710	45
Total Recorded Investment	13,864	5,742
Related Allowance	94	45
Average Recorded Investment	11,567	5,959	5,683
Interest Income Recognized	385	69	63
Interest Income Recognized Cash Basis	7	1	5
Real Estate Loans [Member] | Agricultural [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	5,231	3,347
Recorded Investment With No Allowance	3,283	2,000
Recorded Investment With Allowance	618	1,347
Total Recorded Investment	3,901	3,347
Related Allowance	3	54
Average Recorded Investment	3,574	361	56
Interest Income Recognized	131	17	2
Interest Income Recognized Cash Basis	0	0	0
Consumer [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	10
Recorded Investment With No Allowance	2
Recorded Investment With Allowance	6
Total Recorded Investment	8
Related Allowance	0
Average Recorded Investment	3	0	0
Interest Income Recognized	0	0	0
Interest Income Recognized Cash Basis	0	0	0
Other Commercial Loans [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	4,739	6,159
Recorded Investment With No Allowance	3,766	5,135
Recorded Investment With Allowance	431	859
Total Recorded Investment	4,197	5,994
Related Allowance	231	326
Average Recorded Investment	4,790	5,715	2,700
Interest Income Recognized	152	87	98
Interest Income Recognized Cash Basis	52	6	6
Other Agricultural Loans [Member]
Impaired Financing Receivable [Abstract]
Unpaid Principal Balance	1,397	1,653
Recorded Investment With No Allowance	1,238	1,629
Recorded Investment With Allowance	125	24
Total Recorded Investment	1,363	1,653
Related Allowance	26	30
Average Recorded Investment	1,491	190	37
Interest Income Recognized	65	11	1
Interest Income Recognized Cash Basis	$ 0	$ 0	$ 0

LOANS AND RELATED ALLOWANCE F55

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Credit Quality Indicator (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable by credit exposure [Abstract]
Total	$ 224,423	$ 218,428
Minimum [Member]
Financing Receivable, Recorded Investment [Line Items]
Percentage of dollar volume of commercial loan portfolio to be reviewed	50.00%
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	308,084	252,577
Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	239,957	123,624
Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	13,502	25,441
Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	154,345	148,730
Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	60,134	58,693
Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	9,944	11,005
Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	72,013	58,639
Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	37,809	23,388
State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	104,737	97,514
Pass [Member]
Financing Receivable by credit exposure [Abstract]
Total	714,049	516,605
Pass [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	281,742	225,185
Pass [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	222,198	110,785
Pass [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	13,364	25,441
Pass [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	67,706	51,396
Pass [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	34,914	20,178
Pass [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	94,125	83,620
Special Mention [Member]
Financing Receivable by credit exposure [Abstract]
Total	28,507	39,124
Special Mention [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	15,029	14,045
Special Mention [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	11,538	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	615	2,049
Special Mention [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,325	1,733
Special Mention [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	0	13,066
Substandard [Member]
Financing Receivable by credit exposure [Abstract]
Total	33,379	25,365
Substandard [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	11,271	13,347
Substandard [Member] | Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable by credit exposure [Abstract]
Total	6,221	4,608
Substandard [Member] | Real Estate Loans [Member] | Construction [Member]
Financing Receivable by credit exposure [Abstract]
Total	138	0
Substandard [Member] | Other Commercial Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	3,567	5,105
Substandard [Member] | Other Agricultural Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,570	1,477
Substandard [Member] | State and Political Subdivision Loans [Member]
Financing Receivable by credit exposure [Abstract]
Total	10,612	828
Doubtful [Member]
Financing Receivable by credit exposure [Abstract]
Total	167	89
Doubtful [Member] | Real Estate Loans [Member] | Commercial [Member]
Financing Receivable by credit exposure [Abstract]
Total	42	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	125	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	776,102	581,183
Performing [Member]
Financing Receivable by credit exposure [Abstract]
Total	222,737	216,377
Performing [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	152,820	147,047
Performing [Member] | Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	60,022	58,438
Performing [Member] | Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	9,895	10,892
Nonperforming [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,653	2,012
Nonperforming [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	1,492	1,648
Nonperforming [Member] | Real Estate Loans [Member] | Home Equity [Member]
Financing Receivable by credit exposure [Abstract]
Total	112	255
Nonperforming [Member] | Consumer [Member]
Financing Receivable by credit exposure [Abstract]
Total	49	109
PCI [Member]
Financing Receivable by credit exposure [Abstract]
Total	33	39
PCI [Member] | Real Estate Loans [Member] | Mortgages [Member]
Financing Receivable by credit exposure [Abstract]
Total	33	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	$ 0	$ 4

LOANS AND RELATED ALLOWANCE F56

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Past Due (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Recorded investment of past due [Abstract]
Total past due	$ 12,204	$ 14,133
Current	985,683	782,111
PCI	2,638	3,367
Total financing receivables	1,000,525	799,611
90 Days or greater and accruing	555	405
Financing receivables on nonaccrual status [Abstract]
Total past due and non-accrual	8,160	10,729
Current and non-accrual	2,011	725
PCI Loans considered non accrual	0	0
Financing receivable nonaccrual status	10,171	11,454
Foregone interest income	709	603	$ 463
Financing receivables on accrual status [Abstract]
Total past due and still accruing	4,044	3,404
Current and still accruing	983,672	781,386
PCI Loans still accruing	2,638	3,367
Total financing receivables and still accruing	$ 990,354	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	$ 3,053	3,024
Financing receivables on nonaccrual status [Abstract]
Total past due and non-accrual	816	172
Financing receivables on accrual status [Abstract]
Total past due and still accruing	2,237	2,852
60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	1,533	252
Financing receivables on nonaccrual status [Abstract]
Total past due and non-accrual	281	105
Financing receivables on accrual status [Abstract]
Total past due and still accruing	1,252	147
90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	7,618	10,857
Financing receivables on nonaccrual status [Abstract]
Total past due and non-accrual	7,063	10,452
Financing receivables on accrual status [Abstract]
Total past due and still accruing	555	405
Real Estate Loans [Member] | Mortgages [Member]
Recorded investment of past due [Abstract]
Total past due	2,168	1,775
Current	152,144	146,920
PCI	33	35
Total financing receivables	154,345	148,730
90 Days or greater and accruing	218	173
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	1,274	1,475
Real Estate Loans [Member] | Mortgages [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	996	630
Real Estate Loans [Member] | Mortgages [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	362	36
Real Estate Loans [Member] | Mortgages [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	810	1,109
Real Estate Loans [Member] | Home Equity [Member]
Recorded investment of past due [Abstract]
Total past due	441	642
Current	59,693	58,051
PCI	0	0
Total financing receivables	60,134	58,693
90 Days or greater and accruing	0	160
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	112	95
Real Estate Loans [Member] | Home Equity [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	277	384
Real Estate Loans [Member] | Home Equity [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	86	49
Real Estate Loans [Member] | Home Equity [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	78	209
Real Estate Loans [Member] | Commercial [Member]
Recorded investment of past due [Abstract]
Total past due	6,228	6,117
Current	300,396	244,491
PCI	1,460	1,969
Total financing receivables	308,084	252,577
90 Days or greater and accruing	162	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	5,192	4,445
Real Estate Loans [Member] | Commercial [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	1,353	1,757
Real Estate Loans [Member] | Commercial [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	1,010	58
Real Estate Loans [Member] | Commercial [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	3,865	4,302
Real Estate Loans [Member] | Agricultural [Member]
Recorded investment of past due [Abstract]
Total past due	447	1,145
Current	238,808	121,741
PCI	702	738
Total financing receivables	239,957	123,624
90 Days or greater and accruing	30	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	175	1,340
Real Estate Loans [Member] | Agricultural [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	242	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	205	1,145
Real Estate Loans [Member] | Construction [Member]
Recorded investment of past due [Abstract]
Total past due	133	0
Current	13,369	25,441
PCI	0	0
Total financing receivables	13,502	25,441
90 Days or greater and accruing	0	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	133	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	133	0
Consumer [Member]
Recorded investment of past due [Abstract]
Total past due	135	238
Current	9,809	10,763
PCI	0	4
Total financing receivables	9,944	11,005
90 Days or greater and accruing	7	67
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	42	42
Consumer [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	53	115
Consumer [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	33	40
Consumer [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	49	83
Other Commercial Loans [Member]
Recorded investment of past due [Abstract]
Total past due	2,504	4,134
Current	69,066	53,884
PCI	443	621
Total financing receivables	72,013	58,639
90 Days or greater and accruing	32	0
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	2,637	4,057
Other Commercial Loans [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	132	95
Other Commercial Loans [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	35
Other Commercial Loans [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	2,372	4,004
Other Agricultural Loans [Member]
Recorded investment of past due [Abstract]
Total past due	148	82
Current	37,661	23,306
PCI	0	0
Total financing receivables	37,809	23,388
90 Days or greater and accruing	106	5
Financing receivables on nonaccrual status [Abstract]
Financing receivable nonaccrual status	606	0
Other Agricultural Loans [Member] | 30 to 59 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	0	43
Other Agricultural Loans [Member] | 60 to 89 Days Past Due [Member]
Recorded investment of past due [Abstract]
Total past due	42	34
Other Agricultural Loans [Member] | 90 Days Or Greater [Member]
Recorded investment of past due [Abstract]
Total past due	106	5
State and Political Subdivision Loans [Member]
Recorded investment of past due [Abstract]
Total past due	0	0
Current	104,737	97,514
PCI	0	0
Total financing receivables	104,737	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 AND RELATED ALLOWANCE F57

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Trouble Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Contract	Dec. 31, 2016USD ($)Contract	Dec. 31, 2015USD ($)Contract
LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES [Abstract]
Reserves of allowance for loan losses	$ 41	$ 29	$ 37
Recidivism receivables [Abstract]
Number of contract, subsequently defaults | Contract	2	0	0
Total recidivism, Recorded investment	$ 632	$ 0	$ 0
Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0	1
Pre-modification outstanding recorded investment	$ 0	$ 0	$ 71
Post-modification outstanding recorded investment	$ 0	$ 0	$ 71
Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	12	19	1
Pre-modification outstanding recorded investment	$ 8,691	$ 7,778	$ 19
Post-modification outstanding recorded investment	$ 8,691	$ 7,778	$ 19
Real Estate Loans [Member] | Home Equity [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] | Home Equity [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	1
Pre-modification outstanding recorded investment	$ 25
Post-modification outstanding recorded investment	$ 25
Real Estate Loans [Member] | Mortgages [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract			1
Pre-modification outstanding recorded investment			$ 71
Post-modification outstanding recorded investment			$ 71
Real Estate Loans [Member] | Mortgages [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract			1
Pre-modification outstanding recorded investment			$ 19
Post-modification outstanding recorded investment			$ 19
Real Estate Loans [Member] | Commercial [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0
Real Estate Loans [Member] | Commercial [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	5	4
Pre-modification outstanding recorded investment	$ 7,021	$ 1,188
Post-modification outstanding recorded investment	$ 7,021	$ 1,188
Real Estate Loans [Member] | Agricultural [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0
Real Estate Loans [Member] | Agricultural [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	4	5
Pre-modification outstanding recorded investment	$ 1,475	$ 1,956
Post-modification outstanding recorded investment	$ 1,475	$ 1,956
Other Commercial Loans [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0
Other Commercial Loans [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	1	3
Pre-modification outstanding recorded investment	$ 9	$ 3,076
Post-modification outstanding recorded investment	$ 9	$ 3,076
Other Agricultural Loans [Member]
Recidivism receivables [Abstract]
Number of contract, subsequently defaults | Contract	2	0	0
Total recidivism, Recorded investment	$ 632	$ 0	$ 0
Other Agricultural Loans [Member] | Interest Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	0	0
Pre-modification outstanding recorded investment	$ 0	$ 0
Post-modification outstanding recorded investment	$ 0	$ 0
Other Agricultural Loans [Member] | Term Modification [Member]
Financing receivable modifications [Abstract]
Number of contracts | Contract	1	7
Pre-modification outstanding recorded investment	$ 161	$ 1,558
Post-modification outstanding recorded investment	$ 161	$ 1,558

LOANS AND RELATED ALLOWANCE F58

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Foreclosed Assets Held For Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Foreclosed assets held for sale [Abstract]
Foreclosed assets held for sale	$ 1,119	$ 1,036
Consumer Residential Mortgages [Member]
Foreclosed assets held for sale [Abstract]
Foreclosed assets held for sale	254
Formal foreclosure proceedings on potential foreclosure assets	$ 1,600

LOANS AND RELATED ALLOWANCE F59

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES, Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				$ 8,886				$ 7,106	$ 8,886	$ 7,106	$ 6,815
Charge-offs									(313)	(340)	(238)
Recoveries									77	600	49
Provision (benefit)	$ 800	$ 500	$ 625	615	$ 750	$ 500	$ 135	135	2,540	1,520	480
Balance at end of period	11,190				8,886				11,190	8,886	7,106
Individually evaluated for impairment	410				487				410	487	355
Collectively evaluated for impairment	10,780				8,399				10,780	8,399	6,751
Real Estate Loans [Member] | Residential [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				1,064				905	1,064	905	878
Charge-offs									(107)	(85)	(66)
Recoveries									0	0	0
Provision (benefit)									92	244	93
Balance at end of period	1,049				1,064				1,049	1,064	905
Individually evaluated for impairment	56				32				56	32	37
Collectively evaluated for impairment	993				1,032				993	1,032	868
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				3,589				3,376	3,589	3,376	3,419
Charge-offs									(41)	(100)	(84)
Recoveries									11	479	14
Provision (benefit)									308	(166)	27
Balance at end of period	3,867				3,589				3,867	3,589	3,376
Individually evaluated for impairment	94				45				94	45	62
Collectively evaluated for impairment	3,773				3,544				3,773	3,544	3,314
Real Estate Loans [Member] | Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				1,494				409	1,494	409	451
Charge-offs									(30)	0	0
Recoveries									0	0	0
Provision (benefit)									1,679	1,085	(42)
Balance at end of period	3,143				1,494				3,143	1,494	409
Individually evaluated for impairment	3				54				3	54
Collectively evaluated for impairment	3,140				1,440				3,140	1,440	409
Real Estate Loans [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				47				24	47	24	26
Charge-offs									0	0	0
Recoveries									0	0	0
Provision (benefit)									(24)	23	(2)
Balance at end of period	23				47				23	47	24
Individually evaluated for impairment	0				0				0	0	0
Collectively evaluated for impairment	23				47				23	47	24
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				122				102	122	102	84
Charge-offs									(130)	(100)	(47)
Recoveries									49	88	33
Provision (benefit)									83	32	32
Balance at end of period	124				122				124	122	102
Individually evaluated for impairment	0				0				0	0	0
Collectively evaluated for impairment	124				122				124	122	102
Other Commercial Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				1,327				1,183	1,327	1,183	1,007
Charge-offs									0	(55)	(41)
Recoveries									16	33	2
Provision (benefit)									(71)	166	215
Balance at end of period	1,272				1,327				1,272	1,327	1,183
Individually evaluated for impairment	231				326				231	326	256
Collectively evaluated for impairment	1,041				1,001				1,041	1,001	927
Other Agricultural Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				312				122	312	122	217
Charge-offs									(5)	0	0
Recoveries									1	0	0
Provision (benefit)									184	190	(95)
Balance at end of period	492				312				492	312	122
Individually evaluated for impairment	26				30				26	30
Collectively evaluated for impairment	466				282				466	282	122
State and Political Subdivision Loans [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				833				593	833	593	545
Charge-offs									0	0	0
Recoveries									0	0	0
Provision (benefit)									(17)	240	48
Balance at end of period	816				833				816	833	593
Individually evaluated for impairment	0				0				0	0	0
Collectively evaluated for impairment	816				833				816	833	593
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at beginning of period				$ 98				$ 392	98	392	188
Charge-offs									0	0	0
Recoveries									0	0	0
Provision (benefit)									306	(294)	204
Balance at end of period	404				98				404	98	392
Individually evaluated for impairment	0				0				0	0	0
Collectively evaluated for impairment	$ 404				$ 98				$ 404	$ 98	$ 392

PREMISES & EQUIPMENT (Details)

PREMISES & EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 29,226	$ 29,108
Less: accumulated depreciation	12,703	12,078
Premises and equipment, net	16,523	17,030
Depreciation expense	776	763	$ 608
Land [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	5,110	5,110
Buildings [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	17,402	17,315
Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	6,698	6,678
Construction in Process [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 16	$ 5

GOODWILL AND OTHER INTANGIBLE61

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Amortizing intangible assets [Abstract]
Gross carrying value	[1]	$ 3,516	$ 3,237
Accumulated amortization	[1]	(1,563)	(1,141)
Net carrying value	[1]	1,953	2,096
Non-amortized intangible assets [Abstract]
Goodwill		23,296	21,089
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		474
Estimated Amortization Expense [Abstract]
2,018		480
2,019		407
2,020		312
2,021		253
2,022		197
MSRs [Member]
Amortizing intangible assets [Abstract]
Gross carrying value	[1]	1,605	1,471
Accumulated amortization	[1]	(912)	(787)
Net carrying value	[1]	693	684
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		177
Estimated Amortization Expense [Abstract]
2,018		184
2,019		148
2,020		115
2,021		88
2,022		64
Core Deposit Intangibles [Member]
Amortizing intangible assets [Abstract]
Gross carrying value	[1]	1,786	1,641
Accumulated amortization	[1]	(586)	(320)
Net carrying value	[1]	1,200	1,321
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		266
Estimated Amortization Expense [Abstract]
2,018		265
2,019		230
2,020		197
2,021		165
2,022		133
Covenant not to Compete [Member]
Amortizing intangible assets [Abstract]
Gross carrying value	[1]	125	125
Accumulated amortization	[1]	(65)	(34)
Net carrying value	[1]	60	$ 91
Actual and Estimated Future Amortization Expense [Abstract]
Amortization expense		31
Estimated Amortization Expense [Abstract]
2,018		31
2,019		29
2,020		0
2,021		0
2,022		$ 0
[1]	Excludes fully amortized intangible assets

FEDERAL HOME LOAN BANK (FHLB)62

FEDERAL HOME LOAN BANK (FHLB) STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
FEDERAL HOME LOAN BANK (FHLB) STOCK [Abstract]
Federal home loan bank stock	$ 6,021	$ 4,542
FHLB Stock, at par value (in dollars per share)	$ 100

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
DEPOSITS [Abstract]
Non-interest-bearing deposits	$ 171,840	$ 147,425
NOW accounts	337,307	305,862
Savings deposits	184,057	170,722
Money market deposit accounts	145,287	116,880
Certificates of deposit	266,452	264,614
Total deposits	1,104,943	1,005,503
Certificates of deposit of $250,000 or more [Abstract]
Certificates of deposit of $250,000 or more	62,561	$ 56,743
Maturities of certificates of deposit [Abstract]
2,018	107,591
2,019	51,071
2,020	56,515
2,021	24,390
2,022	20,870
Thereafter	6,015
Total certificates of deposit	$ 266,452

BORROWED FUNDS AND REPURCHASE64

BORROWED FUNDS AND REPURCHASE AGREEMENTS, Breakdown of Borrowed Funds (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Borrowed funds		$ 114,664	$ 79,662
Highest balance at any month-end		119,526	85,282
Average balance		$ 68,536	$ 47,004
Weighted average interest rate paid during the year		1.77%	1.69%
Weighted average interest rate as of year end		1.80%	1.36%
Securities Sold Under Agreements to Repurchase [Member]
Debt Instrument [Line Items]
Borrowed funds	[1]	$ 14,989	$ 14,307
Highest balance at any month-end	[1]	16,643	16,132
Average balance	[1]	$ 15,598	$ 15,057
Weighted average interest rate paid during the year	[1]	0.97%	0.49%
Weighted average interest rate as of year end	[1]	1.37%	0.67%
FHLB Advances [Member]
Debt Instrument [Line Items]
Borrowed funds	[2]	$ 77,650	$ 41,330
Federal Home Loan Bank, advances, highest balance at any month-end	[2]	78,858	45,125
Federal Home Loan Bank, advances, average balance	[2]	$ 29,409	$ 7,917
Federal Home Loan Bank, advances, weighted average interest rate paid during the year	[2]	1.25%	0.63%
Federal Home Loan Bank, advances, weighted average interest rate as of year-end	[2]	1.54%	0.74%
Federal Funds Line [Member]
Debt Instrument [Line Items]
Borrowed funds	[3]	$ 0	$ 0
Highest balance at any month-end	[3]	0	0
Average balance	[3]	$ 1	$ 2
Weighted average interest rate paid during the year	[3]	1.52%	0.76%
Weighted average interest rate as of year end	[3]	0.00%	0.00%
FRB BIC Line [Member]
Debt Instrument [Line Items]
Borrowed funds	[4]	$ 0	$ 0
Highest balance at any month-end	[4]	0	0
Average balance	[4]	$ 2	$ 3
Weighted average interest rate paid during the year	[4]	1.75%	1.00%
Weighted average interest rate as of year end	[4]	0.00%	0.00%
Notes Payable [Member]
Debt Instrument [Line Items]
Borrowed funds	[5]	$ 7,500	$ 7,500
Highest balance at any month-end	[5]	7,500	7,500
Average balance	[5]	$ 7,500	$ 7,500
Weighted average interest rate paid during the year	[5]	4.06%	3.55%
Weighted average interest rate as of year end	[5]	4.40%	3.79%
Term Loans [Member]
Debt Instrument [Line Items]
Borrowed funds	[6]	$ 14,525	$ 16,525
Highest balance at any month-end	[6]	16,525	16,525
Average balance	[6]	$ 16,026	$ 16,525
Weighted average interest rate paid during the year	[6]	2.44%	2.44%
Weighted average interest rate as of year end	[6]	2.42%	2.44%
[1]	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.
[2]	FHLB Advances consist of an "Open RepoPlus" agreement with the FHLB of Pittsburgh. FHLB "Open RepoPlus" advances are short-term borrowings that bear interest based on the FHLB discount rate or Federal Funds rate, whichever is higher. The Company has a borrowing limit of $453,407,000, inclusive of any outstanding advances. FHLB advances are secured by a blanket security agreement that includes the Company's FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans.
[3]	The federal funds line consists of an unsecured line from a third party bank at market rates. The Company has a borrowing limit of $10,000,000, inclusive of any outstanding balances. No specific collateral is required to be pledged for these borrowings.
[4]	The Federal Reserve Bank Borrower in Custody (FRB BIC) Line consists of a borrower in custody in agreement open in January 2010 with the Federal Reserve Bank of Philadelphia secured by municipal loans maintained in the Company's possession. As of December 31, 2017 and 2016, the Company has a borrowing limit of $4,400,000 and $4,360,000, respectively, inclusive of any outstanding advances. The approximate carrying value of the municipal loan collateral was $14,590,000 and $15,560,000 as of December 31, 2017 and 2016, respectively.
[5]	In December 2003, the Company formed a special purpose entity ("Entity") to issue $7,500,000 of floating rate obligated mandatory redeemable trust preferred securities as part of a pooled offering. The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80. The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter. The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable. Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008. Under current accounting rules, the Company's minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet. The Entity is not consolidated as part of the Company's consolidated financial statements.
[6]	Term Loans consist of separate loans with the FHLB of Pittsburgh as follows (in thousands):

BORROWED FUNDS AND REPURCHASE65

BORROWED FUNDS AND REPURCHASE AGREEMENTS, Collateral Pledged on the Repurchase Agreements by Contractual Maturity (Details) - USD ($)		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2008	Dec. 31, 2003
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged		$ 18,062,000	$ 18,177,000
Total liability recognized for repurchase agreements		14,989,000	14,307,000
Debt Instrument [Line Items]
Borrowed funds		114,664,000	79,662,000
Overnight and Continuous [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Total carrying value of collateral pledged		16,027,000	16,118,000
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		16,027,000	16,118,000
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		2,035,000	2,059,000
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		2,035,000	2,059,000
Securities Sold Under Agreements to Repurchase [Member]
Debt Instrument [Line Items]
Borrowed funds	[1]	14,989,000	14,307,000
FHLB Advances [Member]
Debt Instrument [Line Items]
Maximum borrowing limit		453,407,000
Borrowed funds	[2]	77,650,000	41,330,000
Federal Funds Line [Member]
Debt Instrument [Line Items]
Maximum borrowing limit		10,000,000
Borrowed funds	[3]	0	0
FRB BIC Line [Member]
Debt Instrument [Line Items]
Maximum borrowing limit		4,400,000	4,360,000
Carrying value of securities pledged as collateral		14,590,000	15,560,000
Borrowed funds	[4]	0	0
Notes Payable [Member]
Debt Instrument [Line Items]
Face amount of debt		$ 7,500,000
Variable rate basis		3 month LIBOR
Basis spread on variable rate		2.80%
Notional amount of derivative liability				$ 7,500,000
Unamortized debt issuance costs					$ 75,000
Borrowed funds	[5]	$ 7,500,000	7,500,000
Term Loans [Member]
Debt Instrument [Line Items]
Borrowed funds	[6]	$ 14,525,000	16,525,000
Term Loans [Member] | October 2, 2017 [Member]
Debt Instrument [Line Items]
Stated interest rate		2.29%
Maturity date		Oct. 2, 2017
Borrowed funds			2,000,000
Term Loans [Member] | July 12, 2018 [Member]
Debt Instrument [Line Items]
Stated interest rate		2.72%
Maturity date		Jul. 12, 2018
Borrowed funds		$ 1,000,000	1,000,000
Term Loans [Member] | February 4, 2019 [Member]
Debt Instrument [Line Items]
Stated interest rate		1.87%
Maturity date		Feb. 4, 2019
Borrowed funds		$ 2,000,000	2,000,000
Term Loans [Member] | February 3, 2021 [Member]
Debt Instrument [Line Items]
Stated interest rate		2.61%
Maturity date		Feb. 3, 2021
Borrowed funds		$ 2,000,000	2,000,000
Term Loans [Member] | July 12, 2021 [Member]
Debt Instrument [Line Items]
Stated interest rate		3.52%
Maturity date		Jul. 12, 2021
Borrowed funds		$ 2,000,000	2,000,000
Term Loans [Member] | August 20, 2021 [Member]
Debt Instrument [Line Items]
Stated interest rate		2.37%
Maturity date		Aug. 20, 2021
Borrowed funds		$ 2,800,000	2,800,000
Term Loans [Member] | January 6, 2022 [Member]
Debt Instrument [Line Items]
Stated interest rate		2.08%
Maturity date		Jan. 6, 2022
Borrowed funds		$ 4,725,000	$ 4,725,000
[1]	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.
[2]	FHLB Advances consist of an "Open RepoPlus" agreement with the FHLB of Pittsburgh. FHLB "Open RepoPlus" advances are short-term borrowings that bear interest based on the FHLB discount rate or Federal Funds rate, whichever is higher. The Company has a borrowing limit of $453,407,000, inclusive of any outstanding advances. FHLB advances are secured by a blanket security agreement that includes the Company's FHLB stock, as well as certain investment and mortgage-backed securities held in safekeeping at the FHLB and certain residential and commercial mortgage loans.
[3]	The federal funds line consists of an unsecured line from a third party bank at market rates. The Company has a borrowing limit of $10,000,000, inclusive of any outstanding balances. No specific collateral is required to be pledged for these borrowings.
[4]	The Federal Reserve Bank Borrower in Custody (FRB BIC) Line consists of a borrower in custody in agreement open in January 2010 with the Federal Reserve Bank of Philadelphia secured by municipal loans maintained in the Company's possession. As of December 31, 2017 and 2016, the Company has a borrowing limit of $4,400,000 and $4,360,000, respectively, inclusive of any outstanding advances. The approximate carrying value of the municipal loan collateral was $14,590,000 and $15,560,000 as of December 31, 2017 and 2016, respectively.
[5]	In December 2003, the Company formed a special purpose entity ("Entity") to issue $7,500,000 of floating rate obligated mandatory redeemable trust preferred securities as part of a pooled offering. The rate was determined quarterly and floated based on the 3 month LIBOR plus 2.80. The Entity may redeem them, in whole or in part, at face value after December 17, 2008, and on a quarterly basis thereafter. The Company borrowed the proceeds of the issuance from the Entity in December 2003 in the form of a $7,500,000 note payable. Debt issue costs of $75,000 have been capitalized and fully amortized as of December 31, 2008. Under current accounting rules, the Company's minority interest in the Entity was recorded at the initial investment amount and is included in the other assets section of the balance sheet. The Entity is not consolidated as part of the Company's consolidated financial statements.
[6]	Term Loans consist of separate loans with the FHLB of Pittsburgh as follows (in thousands):

BORROWED FUNDS AND REPURCHASE66

BORROWED FUNDS AND REPURCHASE AGREEMENTS, Maturities of Borrowed Funds (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Maturities of borrowed funds [Abstract]
2,018	$ 100,025
2,019	2,000
2,020	580
2,021	7,334
2,022	4,725
Thereafter	0
Total borrowed funds	$ 114,664	$ 79,662

EMPLOYEE BENEFIT PLANS, Noncont

EMPLOYEE BENEFIT PLANS, Noncontributory Defined Benefit Pension Plan (Details)	12 Months Ended
	Dec. 31, 2017USD ($)Plan	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
EMPLOYEE BENEFIT PLANS [Abstract]
Number of plans | Plan	2
Employer discretionary contribution to 401 (k) plan	$ 133,000	$ 82,000	$ 61,000
Amounts recognized in accumulated other comprehensive loss consists of [Abstract]
Total	83,000	(258,000)	(114,000)
Pension Plan [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at beginning of year	18,603,000	17,809,000
Service cost	349,000	345,000	352,000
Interest cost	671,000	692,000	424,000
Actuarial (Gain) / Loss	1,015,000	439,000
Benefits paid	(805,000)	(682,000)
Benefit obligation at end of year	19,833,000	18,603,000	17,809,000
Change in plan assets [Roll Forward]
Fair value of plan assets at beginning of year	15,786,000	14,786,000
Actual return (loss) on plan assets	2,011,000	864,000
Employer contributions	3,000,000	818,000	400,000
Benefits paid	(805,000)	(682,000)
Fair value of plan assets at end of year	19,992,000	15,786,000	14,786,000
Funded status	159,000	(2,817,000)
Amounts recognized in accumulated other comprehensive loss consists of [Abstract]
Net loss	4,088,000	4,263,000
Prior service cost	(127,000)	(175,000)
Total	3,961,000	4,088,000
Components of net periodic benefit cost [Abstract]
Service cost	349,000	345,000	352,000
Interest cost	671,000	692,000	424,000
Return on plan assets	(1,094,000)	(1,034,000)	(791,000)
Net amortization and deferral	224,000	219,000	205,000
Net periodic benefit cost	150,000	$ 222,000	$ 190,000
Amounts that will be amortized from accumulated other comprehensive loss into the net periodic benefit cost in 2017, related to estimated net loss	233,000
Amounts that will be amortized from accumulated other comprehensive loss into the net periodic benefit cost in 2017 related to prior service cost (benefit)	$ (48,000)
Weighted-average assumptions used to determine benefit obligations [Abstract]
Discount rate	3.35%	3.78%
Rate of compensation increase	3.00%	3.00%
Weighted-average assumptions used to determine net periodic benefit cost (income) [Abstract]
Discount rate	3.78%	3.94%	3.61%
Expected long-term return on plan assets	7.00%	7.00%	7.00%
Rate of compensation increase	3.00%	3.00%	3.00%

EMPLOYEE BENEFIT PLANS, Nonco68

EMPLOYEE BENEFIT PLANS, Noncontributory Defined Benefit Pension Plan Fair Value of Plan Assets (Details) - Pension Plan [Member] - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 19,992,000	$ 15,786,000
Allocation	100.00%	100.00%
Expected employer contribution to pension plan	$ 0
Expected future benefit payments [Abstract]
2,018	629,000
2,019	1,896,000
2,020	1,599,000
2,021	1,421,000
2,022	843,000
2023 - 2027	7,805,000
Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	15,935,000	$ 11,502,000
Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	4,057,000	4,284,000
Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Cash and Cash Equivalents [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 3,827,000	$ 863,000
Allocation	19.10%	5.50%
Cash and Cash Equivalents [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 3,827,000	$ 863,000
Cash and Cash Equivalents [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Cash and Cash Equivalents [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Equity Securities [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 6,018,000	$ 5,404,000
Allocation	30.10%	34.10%
Equity Securities [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 6,018,000	$ 5,404,000
Equity Securities [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Equity Securities [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	0
Equity Securities [Member] | Minimum [Member]
Target Allocations of Assets [Abstract]
Target plan asset allocations	50.00%
Equity Securities [Member] | Maximum [Member]
Target Allocations of Assets [Abstract]
Target plan asset allocations	70.00%
Mutual Funds and ETF's [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 6,090,000	$ 5,235,000
Allocation	30.50%	33.20%
Mutual Funds and ETF's [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 6,090,000	$ 5,235,000
Mutual Funds and ETF's [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Mutual Funds and ETF's [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Corporate Bonds [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 3,469,000	$ 3,641,000
Allocation	17.40%	23.10%
Corporate Bonds [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 0
Corporate Bonds [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	3,469,000	3,641,000
Corporate Bonds [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	0
Corporate Bonds [Member] | Minimum [Member]
Target Allocations of Assets [Abstract]
Target plan asset allocations	30.00%
Corporate Bonds [Member] | Maximum [Member]
Target Allocations of Assets [Abstract]
Target plan asset allocations	50.00%
Municipal Bonds [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 105,000	$ 107,000
Allocation	0.50%	0.70%
Municipal Bonds [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 105,000	$ 107,000
U.S. Agency Securities [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 483,000	$ 536,000
Allocation	2.40%	3.40%
U.S. Agency Securities [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0	$ 0
U.S. Agency Securities [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	483,000	536,000
U.S. Agency Securities [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0	0
Certificates of Deposit [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0
Allocation	0.00%
Certificates of Deposit [Member] | Level I [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 0
Certificates of Deposit [Member] | Level II [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0
Certificates of Deposit [Member] | Level III [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	0
Common Stock [Member]
Plan assets at fair value [Abstract]
Fair value of plan assets	$ 684,000	$ 548,000
Allocation	3.40%	3.50%

EMPLOYEE BENEFIT PLANS, Defined

EMPLOYEE BENEFIT PLANS, Defined Contribution Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
EMPLOYEE BENEFIT PLANS [Abstract]
Employer contribution to 401 (k) defined contribution plan	$ 388,000	$ 351,000	$ 285,000

EMPLOYEE BENEFIT PLANS, Directo

EMPLOYEE BENEFIT PLANS, Directors' Deferred Compensation Plan (Details) - Director [Member] - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Deferred compensation liability	$ 928,000	$ 940,000
Deferred interest expense	$ 19,000	$ 15,000	$ 22,000

EMPLOYEE BENEFIT PLANS, Restric

EMPLOYEE BENEFIT PLANS, Restricted Stock Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Additional General Disclosures [Abstract]
Share-based compensation expense	$ 278,000	$ 284,000	$ 179,000
Restricted Stock [Member]
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)	141,408
Unvested Shares [Roll Forward]
Outstanding, beginning of year (in shares)	8,471
Granted (in shares)	4,482
Forfeited (in shares)	(43)
Vested (in shares)	(4,127)
Outstanding, end of year (in shares)	8,783	8,471
Weighted Average Market Price [Roll Forward]
Outstanding, beginning of year (in dollars per share)	$ 49.10
Granted (in dollars per share)	53.84	$ 48.13	$ 49.02
Forfeited (in dollars per share)	48.56
Vested (in dollars per share)	49.78
Outstanding, end of year (in dollars per share)	$ 51.20	$ 49.10
Additional General Disclosures [Abstract]
Share-based compensation expense	$ 214,000	$ 193,000	$ 172,000
Compensation cost related to nonvested awards that has not yet recognized	$ 450,000
Period over which compensation cost is expected to be recognized	3 years

EMPLOYEE BENEFIT PLANS, Other P

EMPLOYEE BENEFIT PLANS, Other Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
Obligation included in other liabilities	$ 578,000	$ 569,000
Supplemental Executive Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Obligation included in other liabilities	1,571,000	1,460,000
Cost recognized	111,000	121,000	$ 141,000
Salary Continuation Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Obligation included in other liabilities	716,000	720,000
Cost recognized	54,000	62,000	0
Continuation of Life Insurance Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Obligation included in other liabilities	578,000	569,000
Cost recognized	$ 9,000	$ 0	$ 0

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2017USD ($)Partnership	Dec. 31, 2016USD ($)Partnership	Dec. 31, 2015USD ($)
Provision for income taxes [Abstract]
Currently payable									$ 4,583	$ 2,672	$ 2,913
Change in corporate tax rate									1,531	0	0
Deferred tax									(83)	362	(192)
Provision for income taxes	$ 2,934	$ 1,141	$ 1,033	$ 923	$ 789	$ 767	$ 687	$ 791	6,031	3,034	2,721
Deferred tax assets [Abstract]
Allowance for loan losses	3,058				4,518				3,058	4,518
Deferred compensation	464				757				464	757
Merger & acquisition costs	7				16				7	16
Allowance for losses on available-for-sale securities	6				250				6	250
Pensions and other retirement obligation	297				1,454				297	1,454
Interest on non-accrual loans	917				1,259				917	1,259
Incentive plan accruals	324				421				324	421
Other real estate owned	108				152				108	152
Unrealized losses on available-for-sale securities	71				0				71	0
Low income housing tax credits	64				94				64	94
NOL carry forward	339				709				339	709
AMT Credit Carryforward	8				8				8	8
Other	117				156				117	156
Total	5,780				9,794				5,780	9,794
Deferred tax liabilities [Abstract]
Premises and equipment	(623)				(998)				(623)	(998)
Investment securities accretion	(66)				(189)				(66)	(189)
Loan fees and costs	(257)				(369)				(257)	(369)
Goodwill and core deposit intangibles	(2,200)				(3,573)				(2,200)	(3,573)
Mortgage servicing rights	(146)				(233)				(146)	(233)
Unrealized gains on available-for-sale securities	0				(673)				0	(673)
Other	(7)				(17)				(7)	(17)
Total	(3,299)				(6,052)				(3,299)	(6,052)
Deferred tax asset, net	2,481				3,742				2,481	3,742
Valuation allowance	0				0				0	0
Total provision for income taxes reconciliation [Abstract]
Provision at statutory rates on pre-tax income									6,505	5,328	4,878
Effect of tax-exempt income									(1,710)	(1,943)	(1,915)
Low income housing tax credits									(141)	(198)	(198)
Bank owned life insurance									(225)	(234)	(214)
Nondeductible interest									54	55	61
Nondeductible merger and acquisition expenses									0	0	102
Change in tax rate									1,531	0	0
Other items									17	26	7
Provision for income taxes	2,934	$ 1,141	$ 1,033	$ 923	789	$ 767	$ 687	$ 791	$ 6,031	$ 3,034	$ 2,721
Statutory tax rates									34.00%	34.00%	34.00%
Effective tax rates									31.60%	19.40%	19.00%
Minimum percentages of tax position liable to be realized upon ultimate settlement									50.00%
Liability for uncertain tax positions	0								$ 0
Unrecognized tax benefits	0								$ 0
Number of investments in partnerships | Partnership									4	4
Investment amount in partnerships	541				$ 700				$ 541	$ 700
Tax Credit Carryforward [Line Items]
Investment tax credits	$ 705								705
Amortization of investments in other expenses									$ 159	259	$ 259
Investment Tax Credit Carryforward [Member]
Tax Credit Carryforward [Line Items]
Tax credits recognition period									5 years
Tax credits recognized as reduction of tax expense amount									$ 141	$ 198	$ 198

OTHER COMPREHENSIVE INCOME (Det

OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Components of accumulated other comprehensive income (loss), net of tax [Abstract]
Net unrealized gain on securities available for sale		$ (340)	$ 1,979
Tax effect		71	(673)
Net -of-tax amount		(269)	1,306
Unrecognized pension costs		(3,961)	(4,088)
Tax effect		832	1,390
Net -of-tax amount		(3,129)	(2,698)
Total accumulated other comprehensive income		(3,398)	(1,392)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance		123,268	119,760	$ 100,528
Other comprehensive income (loss) before reclassifications (net of tax)		(912)	(1,133)	(855)
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)		(535)	(23)	(148)
Net other comprehensive income		(1,447)	(1,156)	(1,003)
Change in other comprehensive income due to change in the federal tax rate		0
Balance		129,011	123,268	119,760
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance		(1,392)	(236)	767
Net other comprehensive income		(1,447)	(1,156)	(1,003)
Change in other comprehensive income due to change in the federal tax rate		(559)
Balance		(3,398)	(1,392)	(236)
Unrealized Gains (Loss) on Available For Sale Securities [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	[1]	1,306	2,204	3,093
Other comprehensive income (loss) before reclassifications (net of tax)	[1]	(847)	(730)	(606)
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)	[1]	(683)	(168)	(283)
Net other comprehensive income	[1]	(1,530)	(898)	(889)
Change in other comprehensive income due to change in the federal tax rate	[1]	(45)
Balance	[1]	(269)	1,306	2,204
Defined Benefit Pension Items [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance	[1]	(2,698)	(2,440)	(2,326)
Other comprehensive income (loss) before reclassifications (net of tax)	[1]	(65)	(403)	(249)
Amounts reclassified from accumulated other comprehensive income (loss) (net of tax)	[1]	148	145	135
Net other comprehensive income	[1]	83	(258)	(114)
Change in other comprehensive income due to change in the federal tax rate	[1]	(514)
Balance	[1]	$ (3,129)	$ (2,698)	$ (2,440)
[1]	Amounts in parentheses indicate debits on the consolidated balance sheet.

OTHER COMPREHENSIVE INCOME, Rec

OTHER COMPREHENSIVE INCOME, Reclassification (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment securities gains, net		$ 831	$ 9	$ 23	$ 172	$ 100	$ 0	$ 128	$ 27	$ 1,035	$ 255	$ 429
Salaries and employee benefits										(17,456)	(16,410)	(12,504)
Provision for income taxes		(2,934)	(1,141)	(1,033)	(923)	(789)	(767)	(687)	(791)	(6,031)	(3,034)	(2,721)
NET INCOME		$ 2,604	$ 3,650	$ 3,468	$ 3,303	$ 3,171	$ 3,153	$ 3,031	$ 3,283	13,025	12,638	11,626
Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
NET INCOME	[1]									535	23	148
Unrealized Gains and Losses on Available For Sale Securities [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Investment securities gains, net	[1]									1,035	255	429
Provision for income taxes	[1]									(352)	(87)	(146)
NET INCOME	[1]									683	168	283
Defined Benefit Pension Items [Member] | Amount Reclassified from Accumulated Comprehensive Income (Loss) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	[1]									(224)	(219)	(205)
Provision for income taxes	[1]									76	74	70
NET INCOME	[1]									$ (148)	$ (145)	$ (135)
[1]	Amounts in parentheses indicate debits.

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Officers, Directors, Stockholders and Associates [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Loans to Related Parties [Roll Forward]
Balance, beginning of year	$ 5,570	$ 5,343
New loans	4,161	4,512
Repayments	(5,146)	(4,285)
Balance, end of year	$ 4,585	$ 5,570

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Category	Dec. 31, 2016USD ($)
Dividend Restrictions [Abstract]
Number of preceding years retained net income used for restrictions on dividend declaration	2 years
Dividends that can be declared without the approval of the Comptroller of the Currency	$ 12,656
Loans [Abstract]
Regulatory lending limit	$ 19,287
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Number of capital categories | Category	5
Company [Member]
Actual Amount [Abstract]
Total capital (to risk-weighted assets)	$ 128,578	$ 121,717
Tier 1 capital (to risk-weighted assets)	117,224	112,599
Common equity tier 1 capital (to risk weighted assets)	109,724	105,099
Tier 1 capital (to average assets)	$ 117,224	$ 112,599
Actual Ratio [Abstract]
Total capital (to risk-weighted assets)	13.20%	14.93%
Tier 1 capital (to risk-weighted assets)	12.04%	13.81%
Common equity Tier 1 capital (to risk weighted assets)	11.27%	12.89%
Tier 1 capital (to average assets)	9.18%	9.46%
For Capital Adequacy Purposes Amount [Abstract]
Total capital (to risk-weighted assets)	$ 77,906	$ 65,217
Tier 1 capital (to risk-weighted assets)	58,430	48,913
Common equity Tier 1 capital (to risk weighted assets)	43,822	36,685
Tier 1 capital (to average assets)	$ 51,085	$ 47,586
For Capital Adequacy Purposes Ratio [Abstract]
Total capital (to risk-weighted assets)	8.00%	8.00%
Tier 1 capital (to risk-weighted assets)	6.00%	6.00%
Common equity Tier 1 capital (to risk weighted assets)	4.50%	4.50%
Tier 1 capital (to average assets)	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount [Abstract]
Total capital (to risk-weighted assets)	$ 97,383	$ 81,522
Tier 1 capital (to risk-weighted assets)	77,906	65,217
Common equity Tier 1 capital (to risk weighted assets)	63,299	52,989
Tier 1 capital (to average assets)	$ 63,857	$ 59,483
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio [Abstract]
Total capital (to risk-weighted assets)	10.00%	10.00%
Tier 1 capital (to risk-weighted assets)	8.00%	8.00%
Common equity Tier 1 capital (to risk weighted assets)	6.50%	6.50%
Tier 1 capital (to average assets)	5.00%	5.00%
Bank [Member]
Actual Amount [Abstract]
Total capital (to risk-weighted assets)	$ 122,469	$ 117,537
Tier 1 capital (to risk-weighted assets)	111,114	108,419
Common equity tier 1 capital (to risk weighted assets)	111,114	108,419
Tier 1 capital (to average assets)	$ 111,114	$ 108,419
Actual Ratio [Abstract]
Total capital (to risk-weighted assets)	12.58%	14.46%
Tier 1 capital (to risk-weighted assets)	11.42%	13.34%
Common equity Tier 1 capital (to risk weighted assets)	11.42%	13.34%
Tier 1 capital (to average assets)	8.71%	9.13%
For Capital Adequacy Purposes Amount [Abstract]
Total capital (to risk-weighted assets)	$ 77,852	$ 65,020
Tier 1 capital (to risk-weighted assets)	58,389	48,765
Common equity Tier 1 capital (to risk weighted assets)	43,792	36,574
Tier 1 capital (to average assets)	$ 51,023	$ 39,006
For Capital Adequacy Purposes Ratio [Abstract]
Total capital (to risk-weighted assets)	8.00%	8.00%
Tier 1 capital (to risk-weighted assets)	6.00%	6.00%
Common equity Tier 1 capital (to risk weighted assets)	4.50%	4.50%
Tier 1 capital (to average assets)	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount [Abstract]
Total capital (to risk-weighted assets)	$ 97,315	$ 81,275
Tier 1 capital (to risk-weighted assets)	77,852	65,020
Common equity Tier 1 capital (to risk weighted assets)	63,255	52,829
Tier 1 capital (to average assets)	$ 63,778	$ 48,757
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio [Abstract]
Total capital (to risk-weighted assets)	10.00%	10.00%
Tier 1 capital (to risk-weighted assets)	8.00%	8.00%
Common equity Tier 1 capital (to risk weighted assets)	6.50%	6.50%
Tier 1 capital (to average assets)	5.00%	5.00%

COMMITMENTS AND CONTINGENT LI78

COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)Claim	Dec. 31, 2016USD ($)
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contractual obligation	$ 203,726	$ 221,460
Coverage period for instruments	1 year
Non-contractual obligation	$ 9,335
Number of claims pending | Claim	0
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contractual obligation	$ 188,482	206,505
Standby Letter of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Contractual obligation	$ 15,244	$ 14,955

OPERATING LEASES (Details)

OPERATING LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Future minimum rental payments under operating leases [Abstract]
2,018	$ 324
2,019	327
2,020	219
2,021	171
2,022	158
Thereafter	141
Total	1,340
Total rental expense	$ 351	$ 289	$ 175

FAIR VALUE OF FINANCIAL INSTR80

FAIR VALUE OF FINANCIAL INSTRUMENTS, Measured On A Recurring And Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Recurring [Member]
Securities available for sale [Abstract]
U.S. Agency securities	$ 98,887	$ 170,414
U.S. Treasuries securities	28,604	3,000
Obligations of state and political subdivisions	79,090	96,926
Corporate obligations	3,083	3,050
Mortgage-backed securities in government sponsored entities	45,027	37,728
Equity securities in financial institutions	91	2,899
Recurring [Member] | Level I [Member]
Securities available for sale [Abstract]
U.S. Agency securities	0	0
U.S. Treasuries securities	28,604	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	91	2,899
Recurring [Member] | Level II [Member]
Securities available for sale [Abstract]
U.S. Agency securities	98,887	170,414
U.S. Treasuries securities	0	0
Obligations of state and political subdivisions	79,090	96,926
Corporate obligations	3,083	3,050
Mortgage-backed securities in government sponsored entities	45,027	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	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	1,569	2,033
Other real estate owned	1,024	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	1,569	2,033
Other real estate owned	$ 1,024	$ 839

FAIR VALUE OF FINANCIAL INSTR81

FAIR VALUE OF FINANCIAL INSTRUMENTS, Quantitative Information (Details) - Appraised Collateral Values [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,569	$ 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 for time since appraisal	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 for time since appraisal	100.00%	65.00%
Selling costs	9.00%	9.00%
Holding period	12 months	12 months
Impaired Loans [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount for time since appraisal	30.83%	28.98%
Selling costs	8.35%	7.56%
Holding period	11 months	11 months
Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair Value	$ 1,024	$ 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 for time since appraisal	15.00%	10.00%
Other Real Estate Owned [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount for time since appraisal	65.00%	67.00%
Other Real Estate Owned [Member] | Weighted Average [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Discount for time since appraisal	26.26%	25.45%

FAIR VALUE OF FINANCIAL INSTR82

FAIR VALUE OF FINANCIAL INSTRUMENTS, By Balance Sheet Grouping (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Financial Assets [Abstract]
Interest bearing time deposits with other banks	$ 10,283	$ 6,955
Available-for-sale securities	$ 254,782	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	$ 18,517	17,754
Interest bearing time deposits with other banks	0	0
Available-for-sale securities	28,695	5,899
Loans held for sale	1,439	1,827
Net loans	0	0
Bank owned life insurance	26,883	26,223
Regulatory stock	6,784	5,306
Accrued interest receivable	4,196	4,089
Financial Liabilities [Abstract]
Deposits	838,490	740,889
Borrowed funds	77,650	41,330
Accrued interest payable	897	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	226,087	308,118
Loans held for sale	0
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	10,287	6,960
Available-for-sale securities	0	0
Loans held for sale	0
Net loans	981,238	797,184
Bank owned life insurance	0	0
Regulatory stock	0	0
Accrued interest receivable	0	0
Financial Liabilities [Abstract]
Deposits	263,093	263,183
Borrowed funds	35,802	36,095
Accrued interest payable	0	0
Carrying Amount [Member]
Financial Assets [Abstract]
Cash and due from banks	18,517	17,754
Interest bearing time deposits with other banks	10,283	6,955
Available-for-sale securities	254,782	314,017
Loans held for sale	1,439	1,827
Net loans	989,335	790,725
Bank owned life insurance	26,883	26,223
Regulatory stock	6,784	5,306
Accrued interest receivable	4,196	4,089
Financial Liabilities [Abstract]
Deposits	1,104,943	1,005,503
Borrowed funds	114,664	79,662
Accrued interest payable	897	720
Fair Value [Member]
Financial Assets [Abstract]
Cash and due from banks	18,517	17,754
Interest bearing time deposits with other banks	10,287	6,960
Available-for-sale securities	254,782	314,017
Loans held for sale	1,439	1,827
Net loans	981,238	797,184
Bank owned life insurance	26,883	26,223
Regulatory stock	6,784	5,306
Accrued interest receivable	4,196	4,089
Financial Liabilities [Abstract]
Deposits	1,101,583	1,004,072
Borrowed funds	113,452	77,425
Accrued interest payable	$ 897	$ 720

CONDENSED FINANCIAL INFORMATI83

CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets [Abstract]
Cash	$ 16,347				$ 16,854				$ 16,347	$ 16,854
Available-for-sale securities	254,782				314,017				254,782	314,017
Investment in subsidiary [Abstract]
Other assets	14,679				13,454				14,679	13,454
TOTAL ASSETS	1,361,886				1,223,018				1,361,886	1,223,018
Liabilities [Abstract]
Other liabilities	12,371				13,865				12,371	13,865
Borrowed funds	114,664				79,662				114,664	79,662
TOTAL LIABILITIES	1,232,875				1,099,750				1,232,875	1,099,750
Stockholders' equity	129,011				123,268				129,011	123,268	$ 119,760	$ 100,528
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	1,361,886				1,223,018				1,361,886	1,223,018
Dividends from [Abstract]
TOTAL INTEREST AND DIVIDEND INCOME	12,895	$ 12,120	$ 11,778	$ 11,300	11,169	$ 10,948	$ 10,426	$ 10,462	48,093	43,005	35,653
Realized securities gains	831	9	23	172	100	0	128	27	1,035	255	429
Expenses									6,021	6,645	4,900
NET INCOME	2,604	3,650	3,468	3,303	3,171	3,153	3,031	3,283	13,025	12,638	11,626
Comprehensive income									11,578	11,482	10,623
Cash flows from operating activities [Abstract]
Net income	2,604	3,650	3,468	3,303	3,171	3,153	3,031	3,283	13,025	12,638	11,626
Adjustments to reconcile net income to net cash provided by operating activities [Abstract]
Investment securities gains, net	(831)	$ (9)	$ (23)	(172)	(100)	$ 0	$ (128)	(27)	(1,035)	(255)	(429)
Other, net									(1,814)	827	(319)
Net cash provided by operating activities									15,739	16,194	12,811
Cash flows from investing activities [Abstract]
Purchases of available-for-sale securities									(54,003)	(55,600)	(111,304)
Proceeds from the sale of available-for-sale securities									58,177	22,372	30,464
Net cash used in investing activities									(105,425)	(70,078)	19,063
Cash flows from financing activities [Abstract]
Cash dividends paid									(5,177)	(5,081)	(5,151)
Purchase of treasury stock									(979)	(3,227)	(2,455)
Reissuance of treasury stock to employee stock purchase plan									43	59	0
Purchase of restricted stock									0	0	(7)
Net cash provided by (used in) financing activities									90,449	47,254	(18,913)
Net increase (decrease) in cash and cash equivalents									763	(6,630)	12,961
Cash and Cash Equivalents at Beginning of Year				17,754				24,384	17,754	24,384	11,423
Cash and Cash Equivalents at End of Year	18,517				17,754				18,517	17,754	24,384
Parent Company [Member]
Assets [Abstract]
Cash	6,238				2,245				6,238	2,245
Available-for-sale securities	91				2,735				91	2,735
Investment in subsidiary [Abstract]
First Citizens Community Bank	130,402				125,973				130,402	125,973
Other assets	369				564				369	564
TOTAL ASSETS	137,100				131,517				137,100	131,517
Liabilities [Abstract]
Other liabilities	589				749				589	749
Borrowed funds	7,500				7,500				7,500	7,500
TOTAL LIABILITIES	8,089				8,249				8,089	8,249
Stockholders' equity	129,011				123,268				129,011	123,268
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	137,100				131,517				137,100	131,517
Dividends from [Abstract]
Bank subsidiary									7,507	5,842	5,582
Equity securities									60	92	71
TOTAL INTEREST AND DIVIDEND INCOME									7,567	5,934	5,653
Realized securities gains									1,021	31	76
Expenses									824	463	892
Income before equity in undistributed earnings of subsidiary									7,764	5,502	4,837
Equity in undistributed earnings - First Citizens Community Bank									5,261	7,136	6,789
NET INCOME									13,025	12,638	11,626
Comprehensive income									11,578	11,482	10,623
Cash flows from operating activities [Abstract]
Net income									13,025	12,638	11,626
Adjustments to reconcile net income to net cash provided by operating activities [Abstract]
Equity in undistributed earnings of subsidiaries									(5,261)	(7,136)	(6,789)
Investment securities gains, net									(1,021)	(31)	(76)
Other, net									629	230	322
Net cash provided by operating activities									7,372	5,701	5,083
Cash flows from investing activities [Abstract]
Purchases of available-for-sale securities									(94)	(1)	(901)
Proceeds from the sale of available-for-sale securities									2,828	201	113
Net cash used in investing activities									2,734	200	(788)
Cash flows from financing activities [Abstract]
Cash dividends paid									(5,177)	(5,081)	(5,151)
Purchase of treasury stock									(979)	(3,227)	(2,455)
Reissuance of treasury stock to employee stock purchase plan									43	59	0
Purchase of restricted stock									0	0	(7)
Net cash provided by (used in) financing activities									(6,113)	(8,249)	(7,613)
Net increase (decrease) in cash and cash equivalents									3,993	(2,348)	(3,318)
Cash and Cash Equivalents at Beginning of Year				$ 2,245				$ 4,593	2,245	4,593	7,911
Cash and Cash Equivalents at End of Year	$ 6,238				$ 2,245				$ 6,238	$ 2,245	$ 4,593

CONSOLIDATED CONDENSED QUARTE84

CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED CONDENSED QUARTERLY DATA (UNAUDITED) [Abstract]
Interest income	$ 12,895	$ 12,120	$ 11,778	$ 11,300	$ 11,169	$ 10,948	$ 10,426	$ 10,462	$ 48,093	$ 43,005	$ 35,653
Interest expense	1,659	1,503	1,374	1,303	1,293	1,236	1,255	1,257	5,839	5,041	4,820
NET INTEREST INCOME	11,236	10,617	10,404	9,997	9,876	9,712	9,171	9,205	42,254	37,964	30,833
Provision for loan losses	800	500	625	615	750	500	135	135	2,540	1,520	480
Non-interest income	1,981	1,912	1,865	1,863	1,992	1,908	1,855	1,889	8,656	7,899	7,423
Investment securities gains, net	831	9	23	172	100	0	128	27	1,035	255	429
Non-interest expenses	7,710	7,247	7,166	7,191	7,258	7,200	7,301	6,912	29,314	28,671	23,429
Income before provision for income taxes	5,538	4,791	4,501	4,226	3,960	3,920	3,718	4,074	19,056	15,672	14,347
Provision for income taxes	2,934	1,141	1,033	923	789	767	687	791	6,031	3,034	2,721
NET INCOME	$ 2,604	$ 3,650	$ 3,468	$ 3,303	$ 3,171	$ 3,153	$ 3,031	$ 3,283	$ 13,025	$ 12,638	$ 11,626
Earnings Per Share Basic (in dollars per share)	$ 0.75	$ 1.05	$ 1	$ 0.94	$ 0.91	$ 0.90	$ 0.86	$ 0.93	$ 3.74	$ 3.60	$ 3.60
Earnings Per Share Diluted (in dollars per share)	$ 0.75	$ 1.05	$ 1	$ 0.94	$ 0.91	$ 0.90	$ 0.86	$ 0.93	$ 3.74	$ 3.60	$ 3.60

ACQUISITION OF FNB (Details)

ACQUISITION OF FNB (Details) $ / shares in Units, shares in Thousands, $ in Thousands	Dec. 11, 2015USD ($)$ / sharesshares	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Jun. 30, 2015Branches$ / shares
Adjustments to reflect liabilities acquired at fair value [Abstract]
Goodwill resulting from merger		$ 23,296	$ 21,089
Merger and acquisition		165	0	$ 1,103
Assets (liabilities) acquired [Abstract]
Goodwill resulting from the FNB merger		23,296	21,089
First National Bank of Fredericksburg [Member]
Summarizes the purchase of FNB [Abstract]
Ownership percentage					100.00%
Merger agreement per share in cash and stock (in dollars per share) | $ / shares					$ 630
Business acquisition credit impaired loans purchased	$ 3,809
Purchase Price Consideration - Cash for Common Stock [Abstract]
Purchase price assigned to The First National Bank of Fredericksburg common shares exchanged for cash	5,619
Total Purchase Price	21,603
Net Assets Acquired [Abstract]
The First National Bank of Fredericksburg shareholders' equity	12,298
Loans [Abstract]
Interest rate	31
General credit	(1,362)
Specific credit - non-amortizing	(2,495)
Specific credit - amortizing	(665)
Core deposit intangible	1,641
Covenant not to compete	125
Premises and equipment	1,203
Leased premises contracts	(359)
Other assets	(358)
Deferred tax assets	785
Adjustments to reflect liabilities acquired at fair value [Abstract]
Time deposits	(74)
Acquired and liabilities assumed, net	10,770	(4,399)	0	61,911
Goodwill resulting from merger	10,833	2,207	0	10,833
Goodwill and other intangibles	12,814
Merger and acquisition				1,103
Asset acquired and liability assumed [Abstract]
Total Purchase Price	21,603
Assets (liabilities) acquired [Abstract]
Cash and cash equivalents	83,514	154	0	83,514
Interest bearing time deposits with other banks	1,236	0	0	1,236
Securities available for sale	23,831	0	0	23,831
Loans	115,211	39,847	0	115,211
Premises and equipment, net	4,743	86	0	4,743
Accrued interest receivable	282	74	0	282
Bank-owned life insurance	4,598	0	0	4,598
Intangibles	1,981	145	0	1,981
Deferred tax asset	2,979	0	0	2,979
Other assets	2,332	0	0	2,332
Time deposits	(42,675)
Deposits other than time deposits	(182,555)
Accrued interest payable	(14)	(29)	0	(14)
Other liabilities	(4,693)	(51)	0	(4,693)
Acquired and liabilities assumed, net	10,770	(4,399)	0	61,911
Goodwill resulting from the FNB merger	$ 10,833	$ 2,207	$ 0	$ 10,833
First National Bank of Fredericksburg [Member] | Lebanon County [Member]
Summarizes the purchase of FNB [Abstract]
Number of Branches | Branches					4
First National Bank of Fredericksburg [Member] | Schuylkill County [Member]
Summarizes the purchase of FNB [Abstract]
Number of Branches | Branches					2
First National Bank of Fredericksburg [Member] | Berks County [Member]
Summarizes the purchase of FNB [Abstract]
Number of Branches | Branches					1
First National Bank of Fredericksburg [Member] | Common Stock [Member]
Purchase Price Consideration in Common Stock [Abstract]
Citizens Financial Services, Inc. shares issued (in shares) | shares	336,515
Value assigned to Citizens Financial Services, Inc. common share (in dollars per share) | $ / shares	$ 47.5
Purchase price assigned to FNB common shares exchanged for Citizens Financial Services, Inc.	$ 15,984

ACQUISITION OF STATE COLLEGE 86

ACQUISITION OF STATE COLLEGE BRANCH (Details) - USD ($) $ in Thousands	Dec. 07, 2017	Dec. 31, 2017	Dec. 31, 2016
Adjustments to reflect liabilities acquired at fair value [Abstract]
Goodwill		$ 23,296	$ 21,089
Net assets acquired [Abstract]
Goodwill		$ 23,296	$ 21,089
State College Branch [Member]
Business Acquisition [Line Items]
Number of days considered for average deposit balances		30 days
Summarizes purchase of Branch [Abstract]
Purchase Price Consideration in cash	$ 1,044
Net Assets Acquired for cash [Abstract]
Loans, interest, PP&E less deposits, interest and escrow payable	3,509
Total cash consideration	4,553
Loans [Abstract]
Interest rate	(522)
General credit	(740)
Core deposit intangible	145
Adjustments to reflect liabilities acquired at fair value [Abstract]
Time deposits	(46)
Acquired net assets at fair value	2,346
Goodwill	2,207
Asset acquired and liability assumed [Abstract]
Total Purchase Price	4,553
Net assets acquired [Abstract]
Cash and cash equivalents	154
Loans	39,847
Premises and equipment, net	86
Accrued interest receivable	74
Intangibles	145
Deposits	(37,880)
Accrued interest payable	(29)
Other liabilities	(51)
Net assets acquired	2,346
Goodwill	2,207
Goodwill and other intangibles	$ 2,352