QNB (QNBC) 10-Q 8 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	QNB CORP
Entity Central Index Key	750,558
Trading Symbol	qnbc
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		3,433,240
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 13,596	$ 8,897
Interest-bearing deposits in banks	1,652	1,824
Total cash and cash equivalents	15,248	10,721
Investment securities
Trading		3,596
Available-for-sale (amortized cost $386,190 and $396,168)	382,564	390,475
Restricted investment in bank stocks	1,974	1,017
Loans held-for-sale	530	789
Loans receivable	695,213	633,079
Allowance for loan losses	(8,035)	(7,394)
Net loans	687,178	625,685
Bank-owned life insurance	10,736	11,297
Premises and equipment, net	8,521	8,683
Accrued interest receivable	2,506	3,128
Net deferred tax assets	4,639	5,473
Other assets	6,627	2,277
Total assets	1,120,523	1,063,141
Deposits
Demand, non-interest bearing	120,369	119,010
Interest-bearing demand	272,264	255,754
Money market	81,805	74,762
Savings	255,027	238,247
Time	127,970	131,370
Time of $100 or more	93,879	94,212
Total deposits	951,314	913,355
Short-term borrowings	66,907	52,660
Accrued interest payable	298	335
Other liabilities	3,254	3,224
Total liabilities	1,021,773	969,574
Shareholders' Equity
Common stock, par value $0.625 per share; authorized 10,000,000 shares; 3,597,809 shares and 3,576,270 shares issued; 3,433,240 and 3,411,701 shares outstanding	2,249	2,235
Surplus	18,099	17,418
Retained earnings	83,271	80,147
Accumulated other comprehensive loss, net of tax	(2,393)	(3,757)
Treasury stock, at cost; 164,569 shares	(2,476)	(2,476)
Total shareholders' equity	98,750	93,567
Total liabilities and shareholders' equity	$ 1,120,523	$ 1,063,141

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Available-for-sale, amortized cost	$ 386,190	$ 396,168
Common stock, par value (in dollars per share)	$ 0.625	$ 0.625
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	3,597,809	3,576,270
Common stock, shares outstanding (in shares)	3,433,240	3,411,701
Treasury stock, shares (in shares)	164,569	164,569

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest income
Interest and fees on loans	$ 7,115	$ 6,332	$ 14,187	$ 12,684
Interest and dividends on investment securities (AFS & HTM):
Taxable	1,551	1,291	3,114	2,647
Tax-exempt	484	489	949	1,005
Interest on trading securities	16	30	45	70
Interest on interest-bearing balances and other interest income	26	42	33	58
Total interest income	9,192	8,184	18,328	16,464
Interest on deposits
Interest-bearing demand	228	163	402	315
Money market	76	47	128	94
Savings	278	229	537	455
Time	372	371	740	744
Time of $100 or more	328	319	651	637
Interest on short-term borrowings	52	36	132	79
Total interest expense	1,334	1,165	2,590	2,324
Net interest income	7,858	7,019	15,738	14,140
Provision for loan losses	300		600	125
Net interest income after provision for loan losses	7,558	7,019	15,138	14,015
Non-interest income
Total other-than-temporary impairment loss on investment securities	0	(122)	0	(192)
Net other-than temporary impairment losses on investment securities		(122)		(192)
Net gain on sale of investment securities	115	137	864	526
Net gain on investment securities	115	15	864	334
Net gain on trading activities	10	52	27	86
Fees for services to customers	421	397	813	780
ATM and debit card	449	422	866	810
Retail brokerage and advisory	104	126	207	296
Bank-owned life insurance	120	73	191	144
Merchant	92	83	172	156
Net gain on sale of loans	201	71	251	120
Other	103	135	214	224
Total non-interest income	1,615	1,374	3,605	2,950
Non-interest expense
Salaries and employee benefits	3,237	2,988	6,323	6,042
Net occupancy	425	426	876	867
Furniture and equipment	456	440	885	865
Marketing	307	265	536	461
Third party services	407	403	801	806
Telephone, postage and supplies	199	174	399	360
State taxes	155	141	348	321
FDIC insurance premiums	134	157	275	327
Other	622	599	1,087	1,063
Total non-interest expense	5,942	5,593	11,530	11,112
Income before income taxes	3,231	2,800	7,213	5,853
Provision for income taxes	845	702	1,967	1,490
Net income	$ 2,386	$ 2,098	$ 5,246	$ 4,363
Earnings per share - basic	$ 0.70	$ 0.62	$ 1.53	$ 1.29
Earnings per share - diluted	0.69	0.62	1.53	1.29
Cash dividends per share	$ 0.31	$ 0.30	$ 0.62	$ 0.60

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income, Before tax amount	$ 3,231	$ 2,800	$ 7,213	$ 5,853
Net unrealized holding gains on securities, Before tax amount:
Unrealized holding gains arising during the period, Before tax amount	1,682	1,333	2,931	5,819
Reclassification adjustment for gains included in net income, Before tax amount	(115)	(15)	(864)	(334)
Unrealized holding gains arising during the period, Tax expense (benefit)	572	453	997	1,979
Reclassification adjustment for gains included in net income, Tax expense (benefit)	(40)	(5)	(294)	(114)
Unrealized holding gains arising during the period, Net of tax amount	1,110	880	1,934	3,840
Reclassification adjustment for gains included in net income, Net of tax amount	(75)	(10)	(570)	(220)
Other comprehensive income, Before tax amount	1,567	1,318	2,067	5,485
Total comprehensive income, Before tax amount	4,798	4,118	9,280	11,338
Tax expense (benefit)	845	702	1,967	1,490
Other comprehensive income, Tax expense (benefit)	532	448	703	1,865
Total comprehensive income, Tax expense (benefit)	1,377	1,150	2,670	3,355
Net income	2,386	2,098	5,246	4,363
Other comprehensive income, Net of tax amount	1,035	870	1,364	3,620
Total comprehensive income, Net of tax amount	$ 3,421	$ 2,968	$ 6,610	$ 7,983

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2015	$ 90,443	$ 2,203	$ 15,973	$ 75,289	$ (546)	$ (2,476)
Balance (in shares) at Dec. 31, 2015		3,359,794
Net income	4,363			4,363
Other comprehensive income, net of tax	3,620				3,620
Cash dividends declared	(2,027)			(2,027)
Stock issued in connection with dividend reinvestment and stock purchase plan	477	$ 10	467
Stock issued in connection with dividend reinvestment and stock purchase plan (in shares)		16,314
Stock issued for employee stock purchase plan	41	$ 1	40
Stock issued for employee stock purchase (in shares)		1,540
Stock issued for options exercised	$ 236	$ 8	228
Stock issued for options exercised (in shares)	17,980	13,552
Tax benefit of stock options exercised	$ 12		12
Stock-based compensation expense	42		42
Balance at Jun. 30, 2016	97,207	$ 2,222	16,762	77,625	3,074	(2,476)
Balance (in shares) at Jun. 30, 2016		3,391,200
Balance at Dec. 31, 2016	$ 93,567	$ 2,235	17,418	80,147	(3,757)	(2,476)
Balance (in shares) at Dec. 31, 2016	3,411,701	3,411,701
Net income	$ 5,246			5,246
Other comprehensive income, net of tax	1,364				1,364
Cash dividends declared	(2,122)			(2,122)
Stock issued in connection with dividend reinvestment and stock purchase plan	512	$ 9	503
Stock issued in connection with dividend reinvestment and stock purchase plan (in shares)		13,579
Stock issued for employee stock purchase plan	42	$ 1	41
Stock issued for employee stock purchase (in shares)		1,318
Stock issued for options exercised	$ 90	$ 4	86
Stock issued for options exercised (in shares)	10,675	6,642
Stock-based compensation expense	$ 51		51
Balance at Jun. 30, 2017	$ 98,750	$ 2,249	$ 18,099	$ 83,271	$ (2,393)	$ (2,476)
Balance (in shares) at Jun. 30, 2017	3,433,240	3,433,240

Consolidated Statement of Shar7

Consolidated Statement of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Retained Earnings [Member]
Cash dividends declared, per share (in dollars per share)	$ 0.62	$ 0.60

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities
Net income	$ 5,246	$ 4,363
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	403	449
Provision for loan losses	600	125
Net gain on investment securities available-for-sale	(864)	(334)
Net gain on sale of other real estate owned, repossessed assets and premises and equipment	(1)	(1)
Gain on sale of loan held for investment	(99)
Net gain on sale of loans	(152)	(120)
Proceeds from sales of residential mortgages held-for-sale	4,675	3,556
Origination of residential mortgages held-for-sale	(4,264)	(2,633)
Income on bank-owned life insurance	(191)	(144)
Stock-based compensation expense	51	42
Net decrease in trading securities	3,596	730
Deferred income taxes	130	(83)
Net (decrease) increase in income taxes payable	(601)	6
Net decrease in accrued interest receivable	622	186
Amortization of mortgage servicing rights and change in valuation allowance	47	36
Net amortization of premiums and discounts on investment securities	839	940
Net decrease in accrued interest payable	(37)
Increase in other assets	(1,203)	(493)
Increase (decrease) in other liabilities	36	(27)
Net cash provided by operating activities	8,833	6,598
Investing Activities
Proceeds from payments, maturities and calls of investment securities available-for-sale	27,255	51,888
Proceeds from the sale of investment securities available-for-sale	24,620	28,814
Purchases of investment securities available-for-sale	(44,470)	(58,655)
Proceeds from redemption of investment in restricted bank stock	2,977	1,482
Purchase of restricted bank stock	(3,934)	(1,496)
Net (increase) decrease in loans	(62,093)	10,663
Proceeds from the sale of loan held for investment	99
Net purchases of premises and equipment	(241)	(105)
Redemption of bank-owned life insurance	752
Proceeds from sales of other real estate owned and repossessed assets	1	1
Net cash (used in) provided by investing activities	(55,034)	32,592
Financing Activities
Net increase in non-interest bearing deposits	1,359	19,107
Net increase (decrease) in interest-bearing deposits	36,600	(15,608)
Net increase (decrease) in short-term borrowings	14,247	(470)
Tax benefit from exercise of stock options		12
Cash dividends paid, net of reinvestment	(1,858)	(1,772)
Proceeds from issuance of common stock	380	499
Net cash provided by financing activities	50,728	1,768
Increase in cash and cash equivalents	4,527	40,958
Cash and cash equivalents at beginning of year	10,721	16,991
Cash and cash equivalents at end of period	15,248	57,949
Supplemental Cash Flow Disclosures
Interest paid	2,627	2,324
Income taxes paid	2,434	$ 1,555
Non-cash transactions:
Unsettled trades to sell securities	$ (2,598)

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of QNB Corp. and its wholly-owned subsidiary, QNB Bank (the “Bank”). The consolidated entity is referred to herein as “QNB” or the “Company”. All significant intercompany accounts and transactions are eliminated in the consolidated financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in QNB's 2016 Annual Report incorporated in the Form 10-K. Operating results for the three and six-month periods ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The unaudited consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of operations for the period and are of a normal and recurring nature. Tabular information, other than share and per share data, is presented in thousands of dollars. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from such estimates. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2017, for items that should potentially be recognized or disclosed in these financial statements.

Note 2 - Recent Accounting Pron

Note 2 - Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Recent Accounting Pronouncements	2. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall Recognition and Measurement of Financial Assets and Financial Liabilities • Equity investments with readily determinable fair values must be measured at fair value with changes in fair value recognized in net income. • Equity investments without readily determinable fair values must be measured at either fair value or at cost adjusted for changes in observable prices minus impairment. Changes in value under either of these methods would be recognized in net income. • Entities that record financial liabilities at fair value due to a fair value option election must recognize changes in fair value in other comprehensive income if it is related to instrument-specific credit risk. • Entities must assess whether a valuation allowance is required for deferred tax assets related to available-for-sale debt securities. This ASU is effective for public companies for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. If QNB had adopted this guidance on June 30, 2017 it would have resulted in a decrease in net income of approximately $116,000. There would have been no impact on shareholder’s equity as the equity securities held by QNB are currently recorded at fair value through accumulated other comprehensive income (loss). On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) On March 30, 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting On June 16, 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) To that end, the new guidance: • Eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, reflects an organization’s current estimate of all expected credit losses over the contractual term of its financial assets • Broadens the information an entity can consider when measuring credit losses to include forward-looking information • Increases usefulness of the financial statements by requiring timely inclusion of forecasted information in forming expectations of credit losses • Increases comparability of purchased financial assets with credit deterioration (PCD assets) with other purchased assets that do not have credit deterioration as well as originated assets because credit losses that are expected will be recorded through an allowance for credit losses for all assets • Increases users’ understanding of underwriting standards and credit quality trends by requiring additional information about credit quality indicators by year of origination (vintage) • For available-for-sale debt securities, aligns the income statement recognition of credit losses with the reporting period in which changes occur by recording credit losses (and subsequent changes in credit losses) through an allowance rather than a write down The new guidance affects organizations that hold financial assets and net investments in leases that are not accounted for at fair value with changes in fair value reported in net income. The new guidance affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. QNB is evaluating the impact of this new standard on its consolidated financial statements. On March 30, 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities

Note 3 - Stock-based Compensati

Note 3 - Stock-based Compensation and Shareholders' Equity	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation and Shareholders Equity	3. STOCK-BASED COMPENSATION AND SHAREHOLDERS’ EQUITY QNB sponsors stock-based compensation plans, administered by a Board Committee, under which both qualified and non-qualified stock options may be granted periodically to certain employees. Compensation cost has been measured using the fair value of an award on the grant date and is recognized over the service period, which is usually the vesting period. Stock-based compensation expense was $33,000 and $26,000 for the three months ended June 30, 2017 and 2016, respectively. Stock-based compensation expense was $51,000 and $42,000 for the six months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, there was approximately $129,000 of unrecognized compensation cost related to unvested share-based compensation award grants that is expected to be recognized over the next 32 months. Options are granted to certain employees at prices equal to the market value of the stock on the date the options are granted. The 2005 Plan authorized the issuance of 200,000 shares. The time period during which any option is exercisable under the Plan is determined by the Committee but shall not commence before the expiration of six months after the date of grant or continue beyond the expiration of five years after the date the option is awarded. The granted options vest after a three-year period. As of June 30, 2017, there were 184,200 options granted, 65,150 options forfeited, 79,375 options exercised, and 39,675 options outstanding under this Plan. The 2005 Plan expired on March 15, 2015. The 2015 Plan authorizes the issuance of 300,000 shares. The terms of the 2015 Plan are identical to the 2005 Plan. There were 48,500 options granted and outstanding under this Plan as of June 30, 2017. There were no options forfeited or exercised as of June 30, 2017. The 2015 Plan expires on February 24, 2025. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. QNB estimated the fair value of stock options on the date of the grant using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are highly subjective in nature. The following assumptions were used in the option pricing model in determining the fair value of options granted during the period: Six months ended June 30, 2017 2016 Risk free interest rate 1.48 % 1.14 % Dividend yield 3.19 % 3.78 % Volatility 17.89 % 22.62 % Expected life (years) 4.20 4.20 The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term approximating the expected life of the option being valued. Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and expected lives of the options. The fair market value of options granted in the first six months of 2017 and 2016 was $3.88 and $3.79, respectively. Stock option activity during the six months ended June 30, 2017 and 2016 is as follows: Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2016 73,950 $ 27.14 Granted 25,000 37.60 Exercised (10,675 ) 22.24 Forfeited (100 ) 21.35 Outstanding at June 30, 2017 88,175 $ 30.71 3.09 $ 849 Exercisable at June 30, 2017 21,825 $ 24.33 1.15 $ 349 Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2015 82,875 $ 24.33 Granted 23,500 30.40 Exercised (17,980 ) 20.66 Forfeited (9,725 ) 25.61 Outstanding at June 30, 2016 78,670 $ 26.82 2.99 $ 407 Exercisable at June 30, 2016 23,545 $ 22.38 1.12 $ 226

Note 4 - Earnings Per Share & S

Note 4 - Earnings Per Share & Share Repurchase Plan	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share & Share Repurchase Plan	4. EARNINGS PER SHARE & SHARE REPURCHASE PLAN The following sets forth the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator for basic and diluted earnings per share - net income $ 2,386 $ 2,098 $ 5,246 $ 4,363 Denominator for basic earnings per share - weighted average shares outstanding 3,425,356 3,383,109 3,420,239 3,376,445 Effect of dilutive securities - employee stock options 17,852 8,766 16,027 8,389 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 3,443,208 3,391,875 3,436,266 3,384,834 Earnings per share - basic $ 0.70 $ 0.62 $ 1.53 $ 1.29 Earnings per share - diluted 0.69 0.62 1.53 1.29 There were 25,000 stock options that were anti-dilutive for the three and six-month periods ended June 30, 2017. There were 41,350 stock options that were anti-dilutive for the three and six-month periods ended June 30, 2016. These stock options were not included in the above calculation. The Board of Directors has authorized the repurchase of up to 100,000 shares of its common stock in open market or privately negotiated transactions. The repurchase authorization does not bear a termination date. There were no shares repurchased during the three or six months ended June 30, 2017 and 2016. As of June 30, 2017, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000.

Note 5 - Comprehensive Income (

Note 5 - Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2017
Other Comprehensive Income Loss Tax [Abstract]
Comprehensive Income (Loss)	5. COMPREHENSIVE INCOME (LOSS) The following shows the components of accumulated other comprehensive loss at June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 Unrealized net holding losses on available-for-sale securities $ (3,596 ) $ (5,446 ) Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings (30 ) (247 ) Accumulated other comprehensive loss (3,626 ) (5,693 ) Tax effect 1,233 1,936 Accumulated other comprehensive loss, net of tax $ (2,393 ) $ (3,757 ) The following tables present amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2017 and 2016: Three months ended June 30, Amount reclassified from accumulated other comprehensive income Details about accumulated other comprehensive income 2017 2016 Affected line item in statement of income Unrealized net holding gains on available-for-sale securities $ 115 $ 137 Net gain on sale of investment securities Other-than-temporary impairment losses on investment securities — (122 ) Net other-than-temporary impairment losses on investment securities 115 15 Tax effect (40 ) (5 ) Provision for income taxes Total reclass out of accumulated other comprehensive income, net of tax $ 75 $ 10 Net of tax Six months ended June 30, Amount reclassified from accumulated other comprehensive income Details about accumulated other comprehensive income 2017 2016 Affected line item in statement of income Unrealized net holding gains on available-for-sale securities $ 864 $ 526 Net gain on sale of investment securities Other-than-temporary impairment losses on investment securities — (192 ) Net other-than-temporary impairment losses on investment securities 864 334 Tax effect (294 ) (114 ) Provision for income taxes Total reclass out of accumulated other comprehensive income, net of tax $ 570 $ 220 Net of tax

Note 6 - Investment Securities

Note 6 - Investment Securities	6 Months Ended
	Jun. 30, 2017
Investments Debt And Equity Securities [Abstract]
Investment Securities	6. INVESTMENT SECURITIES QNB engaged in trading activities for its own account, comprised of municipal securities that were held principally for resale in the near term recorded at fair value with changes in fair value recorded in non-interest income. During the second quarter 2017, QNB Bank redeemed the trading securities portfolio, as lack of market volatility and the interest rate environment resulted in declining performance of the portfolio. The net realized gains recorded for the six months ended June 30, 2017 were $27,000. The net realized and unrealized losses recorded at December 31, 2016 were $40,000 and fair value was $3,596,000. Unrealized gains on trading activity related to trading securities held at December 31, 2016 totaled $69,000. Interest and dividends are included in interest income. The amortized cost and estimated fair values of investment securities available-for-sale at June 30, 2017 and December 31, 2016 were as follows: Gross Gross unrealized unrealized Fair holding holding Amortized June 30, 2017 value gains losses cost U.S. Government agency $ 72,938 $ 11 $ (1,541 ) $ 74,468 State and municipal 78,687 940 (133 ) 77,880 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 141,358 379 (1,681 ) 142,660 Collateralized mortgage obligations (CMOs) 73,765 62 (1,469 ) 75,172 Pooled trust preferred 212 - (30 ) 242 Corporate debt 8,074 31 (19 ) 8,062 Equity 7,530 151 (327 ) 7,706 Total investment securities available-for-sale $ 382,564 $ 1,574 $ (5,200 ) $ 386,190 Gross Gross unrealized unrealized Fair holding holding Amortized December 31, 2016 value gains losses cost U.S. Government agency $ 76,650 $ 36 $ (2,118 ) $ 78,732 State and municipal 72,295 614 (398 ) 72,079 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 145,301 561 (2,241 ) 146,981 Collateralized mortgage obligations (CMOs) 77,415 109 (1,846 ) 79,152 Pooled trust preferred 2,281 263 (891 ) 2,909 Corporate debt 8,030 16 (57 ) 8,071 Equity 8,503 587 (328 ) 8,244 Total investment securities available-for-sale $ 390,475 $ 2,186 $ (7,879 ) $ 396,168 The amortized cost and estimated fair value of securities available-for-sale by contractual maturity at June 30, 2017 are shown in the following table. 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. Securities are assigned to categories based on contractual maturity except for mortgage-backed securities and CMOs which are based on the estimated average life of these securities and municipal securities that have been pre-refunded. Amortized June 30, 2017 Fair value cost Due in one year or less $ 7,111 $ 7,069 Due after one year through five years 205,142 206,788 Due after five years through ten years 140,510 142,352 Due after ten years 22,271 22,275 Equity securities 7,530 7,706 Total investment securities available-for-sale $ 382,564 $ 386,190 Proceeds from sales of investment securities available-for-sale were approximately $10,624,000 and $4,198,000 for the three months ended June 30, 2017 and 2016, respectively. Proceeds from sales of investment securities available-for-sale were approximately $24,620,000 and $28,814,000 for the six months ended June 30, 2017 and 2016 respectively. At June 30, 2017 and December 31, 2016, investment securities available-for-sale totaling approximately $171,738,000 and $166,628,000, respectively, were pledged as collateral for repurchase agreements and deposits of public funds. The following table presents information related to the Company’s gains and losses on the sales of equity and debt securities, and losses recognized for the other-than-temporary impairment (“OTTI”) of these investments. Gains and losses on available-for-sale securities are computed on the specific identification method and included in non-interest income. Gross realized losses on equity and debt securities are net of other-than-temporary impairment charges: Three months ended June 30, 2017 Three months ended June 30, 2016 Other-than- Other-than- Gross Gross temporary Gross Gross temporary realized realized impairment realized realized impairment gains losses losses Net gains (losses) gains losses losses Net gains (losses) Equity securities $ 131 $ — $ — $ 131 $ 36 $ — $ (122 ) $ (86 ) Debt securities 431 (447 ) — (16 ) 101 — — 101 Total $ 562 $ (447 ) $ — $ 115 $ 137 $ — $ (122 ) $ 15 Six months ended June 30, 2017 Six months ended June 30, 2016 Other-than- Other-than- Gross Gross temporary Gross Gross temporary realized realized impairment realized realized impairment gains losses losses Net gains gains losses losses Net gains Equity securities $ 856 $ — $ — $ 856 $ 417 $ — $ (192 ) $ 225 Debt securities 509 (501 ) — 8 182 (73 ) — 109 Total $ 1,365 $ (501 ) $ — $ 864 $ 599 $ (73 ) $ (192 ) $ 334 The tax expense applicable to the net realized gains for the quarters and six-month periods ended June 30, 2017 and 2016 were $40,000 and $5,000 for the quarter and $294,000 and $114,000 year-to-date, respectively. QNB recognizes OTTI for debt securities classified as available-for-sale in accordance with FASB ASC 320, Investments – Debt and Equity Securities The following table presents a roll forward of the credit loss component recognized in earnings. The credit loss component of the amortized cost represents the difference between the present value of expected future cash flows and the amortized cost basis of the security prior to considering credit losses. The beginning balance represents the credit loss component for debt securities for which OTTI occurred prior to the beginning of the year. Credit-impaired debt securities must be presented in two components based upon whether the current period is the first time the debt security was credit-impaired (initial credit impairment) or is not the first time the debt security was credit-impaired (subsequent credit impairments). No credit impairments were recognized on debt securities during second quarter of 2017 or 2016. The table presents a summary of the cumulative credit-related other-than-temporary impairment charges recognized as components of earnings for debt securities still held by QNB: Six months ended June 30, 2017 2016 Balance, beginning of period $ 1,153 $ 1,153 Reductions: sale, pooled trust preferred (1,152 ) — Additions: Initial credit impairments — — Subsequent credit impairments — — Balance, end of period $ 1 $ 1,153 The following table indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2017 and December 31, 2016: Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2017 securities value losses value losses value losses U.S. Government agency 52 $ 69,935 $ (1,541 ) $ — $ — $ 69,935 $ (1,541 ) State and municipal 25 10,312 (113 ) 518 (20 ) 10,830 (133 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 90 126,077 (1,681 ) — — 126,077 (1,681 ) Collateralized mortgage obligations (CMOs) 65 53,910 (1,013 ) 14,000 (456 ) 67,910 (1,469 ) Pooled trust preferred 1 — — 212 (30 ) 212 (30 ) Corporate debt 3 3,016 (19 ) — — 3,016 (19 ) Equity 13 2,962 (276 ) 498 (51 ) 3,460 (327 ) Total 249 $ 266,212 $ (4,643 ) $ 15,228 $ (557 ) $ 281,440 $ (5,200 ) Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 securities value losses value losses value losses U.S. Government agency 55 $ 72,626 $ (2,118 ) $ — $ — $ 72,626 $ (2,118 ) State and municipal 70 29,280 (398 ) — — 29,280 (398 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 88 123,087 (2,241 ) — — 123,087 (2,241 ) Collateralized mortgage obligations (CMOs) 68 56,853 (1,269 ) 15,426 (577 ) 72,279 (1,846 ) Pooled trust preferred 5 — — 1,952 (891 ) 1,952 (891 ) Corporate debt 4 4,002 (57 ) — — 4,002 (57 ) Equity 16 2,985 (268 ) 888 (60 ) 3,873 (328 ) Total 306 $ 288,833 $ (6,351 ) $ 18,266 $ (1,528 ) $ 307,099 $ (7,879 ) Management evaluates debt securities, which are comprised of U.S. Government agencies, state and municipalities, mortgage-backed securities, CMOs and corporate debt securities, for other-than-temporary impairment and considers the current economic conditions, the length of time and the extent to which the fair value has been less than cost, interest rates and the bond rating of each security. The unrealized losses at June 30, 2017 in U.S. Government agency securities, state and municipal securities, mortgage-backed securities, CMOs and corporate debt securities are primarily the result of interest rate fluctuations. If held to maturity, these bonds will mature at par, and QNB will not realize a loss. The Company has the intent to hold the securities and does not believe it will be required to sell the securities before recovery occurs. The Company’s investment in marketable equity securities primarily consists of investments in large cap stock companies. These equity securities are analyzed for impairment on an ongoing basis. Management believes these equity securities will recover in the foreseeable future. QNB evaluated the near-term prospects of the issuers in relation to the severity and duration of the impairment. Based on that evaluation and the Company’s ability and intent to hold those securities for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider these equity securities to be other-than-temporarily impaired. QNB holds one trust preferred security, PreTSL IV. As of June 30, 2017, PreTSL IV is no longer considered impaired: all capitalized interest has been repaid, no cashflows are being diverted to any senior tranche, and the bond has excess subordination, which represents cushion to absorb future defaults or deferrals. The following table provides additional information related to the pooled trust preferred security (PreTSL) as of June 30, 2017: Deal Class Book value Fair value Unrealized gains (losses) Realized OTTI credit loss (YTD 2017) Total recognized OTTI credit loss Moody's /Fitch ratings Current number of performing banks Current number of performing insurance companies Actual deferrals and defaults as a % of total collateral Total performing collateral as a % of outstanding bonds PreTSL IV Mezzanine * $ 242 $ 212 $ (30 ) $ — $ (1 ) B1/BB 5 — 18.0 % 141.6 % Mezzanine* - only class of bonds still outstanding (represents the senior-most obligation of the trust) In June 2017, QNB Bank sold five non-performing pooled trust preferred securities, with a $2,235,000 carrying value, recording a loss on sale of $15,000, included in non-interest income in the consolidated statement of income. Several years ago, QNB had recorded $1,152,000 in OTTI for four of these five these bonds, and subsequently applied any cashflow received to the balance of these non-performing, nonaccrual assets. Improvement in market prices for these securities during the second quarter 2017 reduced realized losses, and the reduction of approximately $19,000,000 in risk-based assets required for these bonds drove the decision to redeem these debt securities. On a quarterly basis we evaluate our debt securities for other-than-temporary impairment (OTTI), which involves the use of a third-party valuation firm to assist management with the valuation. When evaluating these investments a credit-related portion and a non-credit related portion of impairment are determined. The credit related portion is recognized in earnings and represents the expected shortfall in future cash flows. The non-credit related portion is recognized in other comprehensive income and represents the difference between the book value and the fair value of the security less any current quarter credit related impairment. For the quarter and six months ended June 30, 2017 and 2016, no other-than-temporary impairment charges representing credit impairment were recognized on our pooled trust preferred collateralized debt obligations. PreTSL IV is rated lower than AA and measured for OTTI within the scope of ASC 325 (formerly known as EITF 99-20), Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to be Held by a Transferor in Securitized Financial Assets, and Amendments to the Impairment Guidance of EITF Issue No. 99-20

Note 7 - Loans & Allowance for

Note 7 - Loans & Allowance for Loan Losses	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Loans & Allowance for Loan Losses	7. LOANS & ALLOWANCE FOR LOAN LOSSES Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding, net of deferred loan fees and costs. Interest income is accrued on the principal amount outstanding. Loan origination and commitment fees and related direct costs are deferred and amortized to income over the term of the respective loan and loan commitment period as a yield adjustment. Loans held-for-sale consists of residential mortgage loans that are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recognized through a valuation allowance charged to income. Gains and losses on residential mortgages held-for-sale are included in non-interest income. QNB maintains an allowance for loan losses, which is intended to absorb probable known and inherent losses in the outstanding loan portfolio. The allowance is reduced by actual credit losses and is increased by the provision for loan losses and recoveries of previous losses. The provisions for loan losses are charged to earnings to bring the total allowance for loan losses to a level considered necessary by management. The allowance for loan losses is based on management’s continuing review and evaluation of the loan portfolio. The level of the allowance is determined by assigning specific reserves to individually identified problem credits and general reserves to all other loans. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The portion of the allowance that is allocated to internally criticized and non-accrual loans is determined by estimating the inherent loss on each credit after giving consideration to the value of underlying collateral. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates. These loss rates are based on a three-year history of charge-offs and are more heavily weighted for recent experience for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. 2. Effect of external factors, such as legal and regulatory requirements. 3. National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 4. Nature and volume of the portfolio including growth. 5. Experience, ability, and depth of lending management and staff. 6. Volume and severity of past due, classified and nonaccrual loans. 7. Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. 8. Existence and effect of any concentrations of credit and changes in the level of such concentrations. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Management emphasizes loan quality and close monitoring of potential problem credits. Credit risk identification and review processes are utilized to assess and monitor the degree of risk in the loan portfolio. QNB’s lending and credit administration staff are charged with reviewing the loan portfolio and identifying changes in the economy or in a borrower’s circumstances which may affect the ability to repay debt or the value of pledged collateral. A loan classification and review system exists that identifies those loans with a higher than normal risk of uncollectibility. Each commercial loan is assigned a grade based upon an assessment of the borrower’s financial capacity to service the debt and the presence and value of collateral for the loan. An independent loan review group tests risk assessments and evaluates the adequacy of the allowance for loan losses. Management meets monthly to review the credit quality of the loan portfolio and quarterly to review the allowance for loan losses. In addition, various regulatory agencies, as an integral part of their examination process, periodically review QNB’s allowance for loan losses. Such agencies may require QNB to recognize additions to the allowance based on their judgments using information available to them at the time of their examination. Management believes that it uses the best information available to make determinations about the adequacy of the allowance and that it has established its existing allowance for loan losses in accordance with GAAP. If circumstances differ substantially from the assumptions used in making determinations, future adjustments to the allowance for loan losses may be necessary and results of operations could be affected. Because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that increases to the allowance will not be necessary should the quality of any loans deteriorate as a result of the factors discussed above. Major classes of loans are as follows: June 30 December 31, 2017 2016 Commercial: Commercial and industrial $ 140,218 $ 110,233 Construction 44,823 39,268 Secured by commercial real estate 276,738 255,188 Secured by residential real estate 68,704 68,731 State and political subdivisions 35,259 35,260 Retail: 1-4 family residential mortgages 51,138 47,124 Home equity loans and lines 71,791 71,525 Consumer 6,394 5,670 Total loans 695,065 632,999 Net unearned costs 148 80 Loans receivable $ 695,213 $ 633,079 Loans secured by commercial real estate include all loans collateralized at least in part by commercial real estate. These loans may not be for the expressed purpose of conducting commercial real estate transactions. Overdrafts are reclassified as loans and are included in consumer loans above and total loans on the balance sheet. At June 30, 2017 and December 31, 2016, overdrafts were approximately $100,000 and $171,000, respectively. QNB generally lends in its trade area which is comprised of Quakertown and the surrounding communities. To a large extent, QNB makes loans collateralized at least in part by real estate. Its lending activities could be affected by changes in the general economy, the regional economy, or real estate values. Other than disclosed in the table above, at June 30, 2017, there were no concentrations of loans exceeding 10% of total loans. The Company engages in a variety of lending activities, including commercial, residential real estate and consumer transactions. The Company focuses its lending activities on individuals, professionals and small to medium sized businesses. Risks associated with lending activities include economic conditions and changes in interest rates, which can adversely impact both the ability of borrowers to repay their loans and the value of the associated collateral. Commercial and industrial loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers and are more susceptible to a risk of loss during a downturn in the business cycle. These loans may involve greater risk because the availability of funds to repay these loans depends on the successful operation of the borrower’s business. The assets financed are used within the business for its ongoing operation. Repayment of these kinds of loans generally comes from the cash flow of the business or the ongoing conversions of assets, such as accounts receivable and inventory, to cash. Typical collateral for commercial and industrial loans includes the borrower’s accounts receivable, inventory and machinery and equipment. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the eastern Pennsylvania market area at conservative loan-to-value ratios and often backed by the individual guarantees of the borrowers or owners. Repayment of this kind of loan is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties, as well as the factors affecting residential real estate borrowers. Loans to state and political subdivisions are tax-exempt or taxable loans to municipalities, school districts and housing and industrial development authorities. These loans can be general obligations of the municipality or school district repaid through their taxing authority, revenue obligations repaid through the income generated by the operations of the authority, such as a water or sewer authority, or loans issued to a housing and industrial development agency, for which a private corporation is responsible for payments on the loans. Indirect lease financing receivables represent loans to small businesses that are collateralized by equipment. These loans tend to have higher risk characteristics but generally provide higher rates of return. These loans are originated by a third party and purchased by QNB based on criteria specified by QNB. In October 2016, the Company sold its interest in these third-party originated lease financing receivables. The Company originates fixed-rate and adjustable-rate real estate-residential mortgage loans for personal purposes that are secured by first liens on the underlying 1-4 family residential properties. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-income ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance. The real estate-home equity portfolio consists of fixed-rate home equity loans and variable-rate home equity lines of credit. Risks associated with loans secured by residential properties are generally lower than commercial loans and include general economic risks, such as the strength of the job market, employment stability and the strength of the housing market. Since most loans are secured by a primary or secondary residence, the borrower’s continued employment is the greatest risk to repayment. The Company offers a variety of loans to individuals for personal and household purposes. Consumer loans are generally considered to have greater risk than first or second mortgages on real estate because they may be unsecured, or, if they are secured, the value of the collateral may be difficult to assess and is more likely to decrease in value than real estate. Credit risk in this portfolio is controlled by conservative underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. The Company employs an eight (8) grade risk rating system related to the credit quality of commercial loans, loans to state and political subdivisions and indirect lease financing of which the first four categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. 1 - Excellent - no apparent risk 2 - Good - minimal risk 3 - Acceptable - average risk 4 - Watch List - greater than average risk 5 - Special Mention - potential weaknesses 6 - Substandard - well defined weaknesses 7 - Doubtful - full collection unlikely 8 - Loss - considered uncollectible The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential problem loans. Each loan officer assigns a rating to all loans in the portfolio at the time the loan is originated. Loans with risk ratings of one through three are reviewed annually based on the borrower’s fiscal year. Loans with risk ratings of four are reviewed every six to twelve months based on the dollar amount of the relationship with the borrower. Loans with risk ratings of five through eight are reviewed at least quarterly, and as often as monthly, at management’s discretion. The Company also utilizes an outside loan review firm to review the portfolio on a semi-annual basis to provide the Board of Directors and senior management an independent review of the Bank’s loan portfolio on an ongoing basis. These reviews are designed to recognize deteriorating credits in their earliest stages in an effort to reduce and control risk in the lending function as well as identifying potential shifts in the quality of the loan portfolio. The examinations by the outside loan review firm include the review of lending activities with respect to underwriting and processing new loans, monitoring the risk of existing loans and to provide timely follow-up and corrective action for loans showing signs of deterioration in quality. In addition, the outside firm reviews the methodology for the allowance for loan losses to determine compliance to policy and regulatory guidance. The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of June 30, 2017 and December 31, 2016: June 30, 2017 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 132,360 $ 3,153 $ 4,705 $ — $ 140,218 Construction 44,819 — 4 — 44,823 Secured by commercial real estate 261,754 4,630 10,354 — 276,738 Secured by residential real estate 65,984 227 2,493 — 68,704 State and political subdivisions 35,259 — — — 35,259 Total $ 540,176 $ 8,010 $ 17,556 $ — $ 565,742 December 31, 2016 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 102,396 $ 686 $ 7,151 $ — $ 110,233 Construction 39,259 — 9 — 39,268 Secured by commercial real estate 238,290 5,185 11,713 — 255,188 Secured by residential real estate 65,169 231 3,331 — 68,731 State and political subdivisions 35,260 — — — 35,260 Total $ 480,374 $ 6,102 $ 22,204 $ — $ 508,680 For retail loans, the Company evaluates credit quality based on the performance of the individual credits. The following tables present the recorded investment in the retail classes of the loan portfolio based on payment activity as of June 30, 2017 and December 31, 2016: June 30, 2017 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 50,264 $ 874 $ 51,138 Home equity loans and lines 71,679 112 71,791 Consumer 6,305 89 6,394 Total $ 128,248 $ 1,075 $ 129,323 December 31, 2016 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 46,858 $ 266 $ 47,124 Home equity loans and lines 71,436 89 71,525 Consumer 5,577 93 5,670 Total $ 123,871 $ 448 $ 124,319 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of June 30, 2017 and December 31, 2016: June 30, 2017 30-59 past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 73 — — $ 73 $ 140,145 $ 140,218 Construction — — — — 44,823 44,823 Secured by commercial real estate 59 — $ 775 834 275,904 276,738 Secured by residential real estate 218 $ 204 155 577 68,127 68,704 State and political subdivisions — — — — 35,259 35,259 Retail: 1-4 family residential mortgages — — 481 481 50,657 51,138 Home equity loans and lines — 31 50 81 71,710 71,791 Consumer 23 7 10 40 6,354 6,394 Total $ 373 $ 242 $ 1,471 $ 2,086 $ 692,979 $ 695,065 December 31, 2016 30-59 days past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 463 — — $ 463 $ 109,770 $ 110,233 Construction 214 — — 214 39,054 39,268 Secured by commercial real estate 64 $ 395 $ 1,596 2,055 253,133 255,188 Secured by residential real estate — — 285 285 68,446 68,731 State and political subdivisions — — — — 35,260 35,260 Retail: 1-4 family residential mortgages 1,459 323 — 1,782 45,342 47,124 Home equity loans and lines 107 15 — 122 71,403 71,525 Consumer 14 2 — 16 5,654 5,670 Total $ 2,321 $ 735 $ 1,881 $ 4,937 $ 628,062 $ 632,999 The following tables disclose the recorded investment in loans receivable that are either on non-accrual status or past due 90 days or more and still accruing interest as of June 30, 2017 and December 31, 2016: June 30, 2017 90 due (still accruing) Non-accrual Commercial: Commercial and industrial $ — $ 4,467 Construction — — Secured by commercial real estate — 2,140 Secured by residential real estate — 1,771 State and political subdivisions — — Retail: 1-4 family residential mortgages — 874 Home equity loans and lines — 112 Consumer — 89 Total $ — $ 9,453 December 31, 2016 90 due (still accruing) Non-accrual Commercial: Commercial and industrial $ — $ 4,798 Construction — — Secured by commercial real estate — 3,007 Secured by residential real estate — 1,866 State and political subdivisions — — Retail: 1-4 family residential mortgages — 266 Home equity loans and lines — 89 Consumer — 93 Total $ — $ 10,119 Activity in the allowance for loan losses for the three months ended June 30, 2017 and 2016 are as follows: Three months ended June 30, 2017 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,978 $ 191 — $ 8 $ 2,177 Construction 463 53 — — 516 Secured by commercial real estate 2,577 61 — 2 2,640 Secured by residential real estate 1,344 (156 ) — 12 1,200 State and political subdivisions 124 (1 ) — — 123 Retail: 1-4 family residential mortgages 415 24 — — 439 Home equity loans and lines 342 (25 ) — 2 319 Consumer 77 9 $ (18 ) 10 78 Unallocated 399 144 N/A N/A 543 Total $ 7,719 $ 300 $ (18 ) $ 34 $ 8,035 Three months ended June 30, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,334 $ 6 — $ 10 $ 1,350 Construction 352 77 — — 429 Secured by commercial real estate 2,292 (63 ) — 2 2,231 Secured by residential real estate 1,690 (162 ) $ (20 ) 42 1,550 State and political subdivisions 196 8 — — 204 Indirect lease financing 208 52 (43 ) 9 226 Retail: 1-4 family residential mortgages 352 (54 ) — — 298 Home equity loans and lines 352 (14 ) — 5 343 Consumer 69 15 (16 ) 5 73 Unallocated 711 135 N/A N/A 846 Total $ 7,556 $ — $ (79 ) $ 73 $ 7,550 Activity in the allowance for loan losses for the six months ended June 30, 2017 and 2016 are as follows: Six months ended June 30, 2017 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,459 $ 698 — $ 20 $ 2,177 Construction 449 67 — — 516 Secured by commercial real estate 2,646 (10 ) — 4 2,640 Secured by residential real estate 1,760 (592 ) $ (3 ) 35 1,200 State and political subdivisions 123 — — — 123 Retail: 1-4 family residential mortgages 366 73 — — 439 Home equity loans and lines 353 (39 ) — 5 319 Consumer 76 22 (39 ) 19 78 Unallocated 162 381 N/A N/A 543 Total $ 7,394 $ 600 $ (42 ) $ 83 $ 8,035 Six months ended June 30, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,521 $ (50 ) $ (140 ) $ 19 $ 1,350 Construction 286 143 — — 429 Secured by commercial real estate 2,411 (184 ) — 4 2,231 Secured by residential real estate 1,812 (302 ) (20 ) 60 1,550 State and political subdivisions 222 (18 ) — — 204 Indirect lease financing 164 105 (52 ) 9 226 Retail: 1-4 family residential mortgages 350 (52 ) — — 298 Home equity loans and lines 428 (95 ) — 10 343 Consumer 76 16 (33 ) 14 73 Unallocated 284 562 N/A N/A 846 Total $ 7,554 $ 125 $ (245 ) $ 116 $ 7,550 As previously discussed, the Company maintains a loan review system, which includes a continuous review of the loan portfolio by internal and external parties to aid in the early identification of potential impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial loans, loans to state and political subdivisions and indirect lease financing loans by using either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring. An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of the majority of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. From time to time, QNB may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers that may be experiencing financial difficulties. A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates to less than the current market rate for new obligations with similar risk. Loans classified as TDRs are considered non-performing and are also designated as impaired. The concessions made for TDRs involve lowering the monthly payments on loans through periods of interest only payments, a reduction in interest rate below a market rate or an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these three methods. The restructurings rarely result in the forgiveness of principal or accrued interest. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. TDR loans that are in compliance with their modified terms and that yield a market rate may be removed from the TDR status after a period of performance. Performing TDRs (not reported as non-accrual or past due 90 days or more and still accruing) totaled $1,393,000 and $1,819,000 as of June 30, 2017 and December 31, 2016, respectively. Non-performing TDRs totaled $3,339,000 and $3,555,000 as of June 30, 2017 and December 31, 2016, respectively. All TDRs are included in impaired loans. The following table illustrates the specific reserve for loan losses allocated to loans modified as TDRs. These specific reserves are included in the allowance for loan losses for loans individually evaluated for impairment. June 30, 2017 December 31, 2016 Unpaid principal balance Related allowance Unpaid principal balance Related allowance TDRs with no specific allowance recorded $ 4,110 — $ 3,992 — TDRs with an allowance recorded 622 $ 311 1,382 $ 761 Total $ 4,732 $ 311 $ 5,374 $ 761 There were no newly identified TDRs during the six months ended June 30, 2017. As of June 30, 2017, and December 31, 2016, QNB had commitments of $20,000 and $30,000, respectively, to lend additional funds to customers with loans whose terms have been modified in troubled debt restructurings. There were net charge-offs of $3,000 and $0 during the six months ended June 30, 2017 and 2016, respectively, resulting from loans previously modified as TDRs. The following tables present loans, by loan class, modified as TDRs during the three and six months ended June 30, 2017 and 2016. The pre-modification and post-modification outstanding recorded investments disclosed in the tables below, represent carrying amounts immediately prior to the modification and as of the period end indicated. Three months ended June 30, 2017 2016 Number contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial: Secured by residential real estate — $ — $ — 1 $ 41 $ 41 Six months ended June 30, 2017 2016 Number contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial: Commercial and industrial — $ — $ — 6 $ 1,074 $ 1,069 Secured by residential real estate — — — 4 524 512 Total — $ — $ — 10 $ 1,598 $ 1,581 There was one loan with an outstanding balance of $21,000 that was modified as a TDR within 12 months prior to June 30, 2017 for which there was a payment default (60 days or more past due) during the six months ended June 30, 2017. There were no loans modified as TDRs within 12 months prior to June 30, 2016 for which there was a payment default during the six months ended June 30, 2016. The Company has three consumer mortgage loans secured by residential real estate for which foreclosure proceedings are in process at June 30, 2017. The recorded investment is $531,000. The following tables present the balance in the allowance for loan losses at June 30, 2017 and December 31, 2016 disaggregated based on the Company’s impairment method by class of loans receivable along with the balance of loans receivable by class, excluding unearned fees and costs, disaggregated based on the Company’s impairment methodology: Allowance for Loan Losses Loans Receivable June 30, 2017 Balance Balance to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 2,177 $ 964 $ 1,213 $ 140,218 $ 4,712 $ 135,506 Construction 516 — 516 44,823 4 44,819 Secured by commercial real estate 2,640 42 2,598 276,738 5,401 271,337 Secured by residential real estate 1,200 127 1,073 68,704 2,200 66,504 State and political subdivisions 123 — 123 35,259 — 35,259 Retail: 1-4 family residential mortgages 439 — 439 51,138 1,213 49,925 Home equity loans and lines 319 — 319 71,791 134 71,657 Consumer 78 — 78 6,394 89 6,305 Unallocated 543 N/A N/A N/A N/A N/A Total $ 8,035 $ 1,133 $ 6,359 $ 695,065 $ 13,753 $ 681,312 Allowance for Loan Losses Loans Receivable December 31, 2016 Balance Balance related to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 1,459 $ 696 $ 763 $ 110,233 $ 5,134 $ 105,099 Construction 449 — 449 39,268 224 39,044 Secured by commercial real estate 2,646 — 2,646 255,188 6,383 248,805 Secured by residential real estate 1,760 494 1,266 68,731 2,313 66,418 State and political subdivisions 123 — 123 35,260 — 35,260 Retail: 1-4 family residential mortgages 366 8 358 47,124 748 46,376 Home equity loans and lines 353 — 353 71,525 111 71,414 Consumer 76 — 76 5,670 93 5,577 Unallocated 162 N/A N/A N/A N/A N/A Total $ 7,394 $ 1,198 $ 6,034 $ 632,999 $ 15,006 $ 617,993 The following tables summarize additional information in regards to impaired loans by loan portfolio class as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Recorded investment (after charge-offs) Unpaid principal balance Related allowance Recorded investment (after charge-offs) Unpaid principal balance Related allowance With no specific allowance recorded: Commercial: Commercial and industrial $ 2,235 $ 2,584 $ — $ 2,482 $ 2,862 $ — Construction 4 4 — 224 234 — Secured by commercial real estate 5,299 5,832 — 6,383 6,367 — Secured by residential real estate 1,607 2,037 — 1,046 1,438 — State and political subdivisions — — — — — — Retail: 1-4 family residential mortgages 1,213 1,256 — 570 589 — Home equity loans and lines 134 176 — 111 174 — Consumer 89 92 — 93 95 — Total $ 10,581 $ 11,981 $ — $ 10,909 $ 11,759 $ — With an allowance recorded: Commercial: Commercial and industrial $ 2,477 $ 2,686 $ 964 $ 2,652 $ 2,812 $ 696 Construction — — — — — — Secured by commercial real estate 102 105 42 — — — Secured by residential real estate 593 724 127 1,267 1,435 494 State and political subdivisions — — — — — — Retail: 1-4 family residential mortgages — — — 178 193 8 Home equity loans and lines — — — — — — Consumer — — — — — — Total $ 3,172 $ 3,515 $ 1,133 $ 4,097 $ 4,440 $ 1,198 Total: Commercial: Commercial and industrial $ 4,712 $ 5,270 $ 964 $ 5,134 $ 5,674 $ 696 Construction 4 4 — 224 234 — Sec

Note 8 - Fair Value Measurement

Note 8 - Fair Value Measurements and Disclosures	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements and Disclosures	8. FAIR VALUE MEASUREMENTS AND DISCLOSURES Financial Accounting Standards Board (FASB) ASC 820, Fair Value Measurements and Disclosures ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach, and/or cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). For example, valuation techniques consistent with the market approach often use market multiples derived from a set of comparable transactions. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering factors specific to the measurement (qualitative and quantitative). Valuation techniques consistent with the market approach include matrix pricing. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the security’s relationship to other benchmark quoted securities. The following table sets forth QNB’s financial assets measured at fair value on a recurring and nonrecurring basis and the fair value measurements by level within the fair value hierarchy as of June 30, 2017: June 30, 2017 Quoted in active markets for identical assets (Level 1) Significant other observable input (Level 2) Significant unobservable inputs (Level 3) Balance at end of period Recurring fair value measurements Securities available-for-sale U.S. Government agency securities — $ 72,938 — $ 72,938 State and municipal securities — 78,687 — 78,687 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 141,358 — 141,358 Collateralized mortgage obligations (CMOs) — 73,765 — 73,765 Pooled trust preferred securities — — $ 212 212 Corporate debt securities — 8,074 — 8,074 Equity securities $ 7,530 — — 7,530 Total securities available-for-sale $ 7,530 $ 374,822 $ 212 $ 382,564 Total recurring fair value measurements $ 7,530 $ 374,822 $ 212 $ 382,564 Nonrecurring fair value measurements Impaired loans $ — $ — $ 2,039 $ 2,039 Mortgage servicing rights — — 36 36 Total nonrecurring fair value measurements $ — $ — $ 2,075 $ 2,075 There were no transfers in and out of Level 1 and Level 2 fair value measurements during the three or six months ended June 30, 2017. There were also no transfers in or out of level 3 for the same period. There were no losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the three- and six-month periods ended June 30, 2017. The following table sets forth QNB’s financial assets measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy as of December 31, 2016: December 31, 2016 Quoted prices in active markets for identical assets (Level 1) Significant other observable input (Level 2) Significant unobservable inputs (Level 3) Balance at end of period Recurring fair value measurements Trading Securities State and municipal securities $ — $ 3,596 $ — $ 3,596 Securities available-for-sale U.S. Government agency securities — $ 76,650 — $ 76,650 State and municipal securities — 72,295 — 72,295 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 145,301 — 145,301 Collateralized mortgage obligations (CMOs) — 77,415 — 77,415 Pooled trust preferred securities — — $ 2,281 2,281 Corporate debt securities — 8,030 — 8,030 Equity securities $ 8,503 — — 8,503 Total securities available-for-sale $ 8,503 $ 379,691 $ 2,281 $ 390,475 Total recurring fair value measurements $ 8,503 $ 383,287 $ 2,281 $ 394,071 Nonrecurring fair value measurements Impaired loans $ — $ — $ 2,899 $ 2,899 Mortgage servicing rights — — 58 58 Total nonrecurring fair value measurements $ — $ — $ 2,957 $ 2,957 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which QNB has utilized Level 3 inputs to determine fair value: Quantitative information about Level 3 fair value measurements June 30, 2017 Fair value Valuation techniques Unobservable input Value or range of values Impaired loans $ 526 Appraisal of collateral (1) Appraisal adjustments (2) -15% to -80% Liquidation expenses (3) -10% Impaired loans 14 Used commercial vehicle and equipment guides Guide value discounts (4) -25% Impaired loans $ 1,499 Financial statement values for UCC collateral Financial statement value discounts (5) -25% to -50% Mortgage servicing rights 36 Discounted cash flow Remaining term 2 to 27 yrs Discount rate 14% to 16% Quantitative information about Level 3 fair value measurements December 31, 2016 Fair value Valuation techniques Unobservable input Value or range of values Impaired loans $ 938 Appraisal of collateral (1) Appraisal adjustments (2) -10% to -80% Liquidation expenses (3) -10% Impaired loans 76 Used commercial vehicle and equipment guides Guide value discounts (4) 0% to -25% Impaired loans 1,880 Financial statement values for UCC collateral Financial statement value discounts (5) -20% to -50% Impaired loans 5 Agreement of sale (6) Mortgage servicing rights 58 Discounted cash flow Remaining term 2 to 27 yrs Discount rate 14% to 16% (1) Fair value is primarily determined through appraisals of the underlying collateral by independent parties, which generally includes various level 3 inputs which are not always identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and the age of the appraisal. The range is presented as a percent of the initial appraised value. (3) Appraisals and pending agreements of sale are adjusted by management for estimated liquidation expenses. The range is presented as a percent of the initial appraised value or sale price. (4) If lendable value (lower than wholesale) is utilized then no additional discounts are taken. If lendable value is not provided, additional discounts are applied. (5) Values obtained from financial statements for UCC collateral (fixed assets, accounts receivable, and inventory) are discounted to estimated realizable liquidation value. (6) Fair value is determined by the net amount due. The following table presents additional information about the securities available-for-sale measured at fair value on a recurring basis and for which QNB utilized significant unobservable inputs (Level 3 inputs) to determine fair value for the six months ended June 30, 2017 and 2016: Fair value measurements using significant unobservable inputs (Level 3) 2017 2016 Balance, January 1, $ 2,281 $ 2,653 Payments received (55 ) (197 ) Sale of securities (2,026 ) — Total gains or losses (realized/unrealized) Included in earnings (15 ) — Included in other comprehensive income 27 (56 ) Transfers in and/or out of Level 3 — — Balance, June 30, $ 212 $ 2,400 The Level 3 securities consist of one collateralized debt obligation security (“PreTSL”), which is backed by trust preferred securities issued by banks. Given conditions in the debt markets today and the absence of observable transactions in the secondary and new issue markets, we determined: • The few observable transactions and market quotations that are available are not reliable for purposes of determining fair value at June 30, 2017; • An income valuation approach technique (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs will be equally or more representative of fair value than the market approach valuation technique used at prior measurement dates; and • Trust preferred securities will be classified within Level 3 of the fair value hierarchy because significant adjustments are required to determine fair value at the measurement date. The Bank utilized a third party to value this security using a discounted cash flow analysis. Based on management’s review of the five underlying issuers, there are no expected credit losses or prepayments; cashflows used were contractual based on the Bloomberg YA screen. The assumed cash flows have been discounted using an estimated market discount rate based on the 30-year swap rate. The 30-year swap rate is used as the reference rate, since it is indicative of market expectation for short term rates in the future. This is consistent with the 30-year nature of PreTSL securities, which are priced using the 3-month LIBOR as a reference rate. The discount rate of 6.18% includes the risk-free rate, a credit component and a spread for illiquidity. For a further discussion of PreTSL valuation see Note 6, Investment Securities. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of QNB’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between QNB’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of each major classification of financial instrument and non-financial asset at June 30, 2017 and December 31, 2016: Cash and cash equivalents, accrued interest receivable and accrued interest payable (carried at cost) Investment securities - trading (carried at fair value), available for sale (carried at fair value) and held-to-maturity (carried at amortized cost) Restricted investment in bank stocks (carried at cost) Loans Held-for-Sale (carried at lower of cost or fair value) Loans Receivable (carried at cost) Impaired Loans (generally carried at fair value) Mortgage Servicing Rights (carried at lower of cost or fair value) Deposit liabilities (carried at cost) Short-term borrowings (carried at cost) Off-balance-sheet instruments (disclosed at cost) Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transaction on the dates indicated. The estimated fair value amounts have been measured as of the respective period ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period end. The estimated fair values and carrying amounts of the Company’s financial and off-balance sheet instruments are summarized as follows: Fair value measurements June 30, 2017 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 15,248 $ 15,248 $ 15,248 — — Investment securities: Available-for-sale 382,564 382,564 7,530 $ 374,822 $ 212 Restricted investment in bank stocks 1,974 1,974 — 1,974 — Loans held-for-sale 530 539 — 539 — Net loans 687,178 694,371 — — 694,371 Mortgage servicing rights 485 571 — — 571 Accrued interest receivable 2,506 2,506 — 2,506 — Financial liabilities Deposits with no stated maturities $ 729,465 $ 729,465 $ 729,465 — $ — Deposits with stated maturities 221,849 221,628 — $ 221,628 — Short-term borrowings 66,907 66,907 66,907 — — Accrued interest payable 298 298 — 298 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — — Fair value measurements December 31, 2016 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 10,721 $ 10,721 $ 10,721 — — Investment securities: Trading 3,596 3,596 — $ 3,596 — Available-for-sale 390,475 390,475 8,503 379,691 $ 2,281 Restricted investment in bank stocks 1,017 1,017 — 1,017 — Loans held-for-sale 789 789 — 789 — Net loans 625,685 626,052 — — 626,052 Mortgage servicing rights 498 579 — — 579 Accrued interest receivable 3,128 3,128 — 3,128 — Financial liabilities Deposits with no stated maturities $ 687,773 $ 687,773 $ 687,773 — $ — Deposits with stated maturities 225,582 225,403 — $ 225,403 — Short-term borrowings 52,660 52,660 52,660 — — Accrued interest payable 335 335 — 335 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — —

Note 9 - Off-balance-sheet Fina

Note 9 - Off-balance-sheet Financial Instruments and Guarantees	6 Months Ended
	Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Off-balance-sheet Financial Instruments and Guarantees	9. OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS AND GUARANTEES In the normal course of business there are various legal proceedings, commitments, and contingent liabilities which are not reflected in the consolidated financial statements. Management does not anticipate any material losses as a result of these transactions and activities. They include, among other things, commitments to extend credit and standby letters of credit. The maximum exposure to credit loss, which represents the possibility of sustaining a loss due to the failure of the other parties to a financial instrument to perform according to the terms of the contract, is represented by the contractual amount of these instruments. QNB uses the same lending standards and policies in making credit commitments as it does for on-balance sheet instruments. The activity is controlled through credit approvals, control limits, and monitoring procedures. A summary of the Bank's financial instrument commitments is as follows: June 30, December 31, 2017 2016 Commitments to extend credit and unused lines of credit $ 295,823 $ 277,216 Standby letters of credit 14,386 16,490 Total financial instrument commitments $ 310,209 $ 293,706 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. QNB evaluates each customer’s creditworthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Bank to guarantee the financial or performance obligation of a customer to a third party. QNB’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making conditional obligations as it does for on-balance sheet instruments. The majority of these standby letters of credit expire within one year with the longest term being five years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral and personal guarantees supporting these letters of credit as deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral and the enforcement of personal guarantees would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The amount of the liability as of June 30, 2017 and December 31, 2016 for guarantees under standby letters of credit issued is not material. The amount of collateral obtained for letters of credit and commitments to extend credit is based on management’s credit evaluation of the customer. Collateral varies, but may include real estate, accounts receivable, marketable securities, pledged deposits, inventory or equipment.

Note 10 - Regulatory Restrictio

Note 10 - Regulatory Restrictions	6 Months Ended
	Jun. 30, 2017
Banking And Thrift [Abstract]
Regulatory Restrictions	10. REGULATORY RESTRICTIONS Dividends payable by the Company and the Bank are subject to various limitations imposed by statutes, regulations and policies adopted by bank regulatory agencies. Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. Under Federal Reserve regulations, the Bank is limited as to the amount it may lend affiliates, including QNB Corp., unless such loans are collateralized by specific obligations. Both the Company and the Bank are subject to regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can initiate actions by regulators that could have an effect on the financial statements. Under the framework for prompt corrective action, both the Company and the Bank must meet capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items. The capital amounts and classification are also subject to qualitative judgments by the regulators. Management believes, as of June 30, 2017, that the Company and the Bank met capital adequacy requirements to which they were subject. As of the most recent notification, the primary regulator of the Bank considered it to be “well capitalized” under the regulatory framework. There are no conditions or events since that notification that management believes have changed the classification. To be categorized as well capitalized, the Company and the Bank must maintain minimum ratios as set forth in the following table below. The Company and the Bank’s actual capital amounts and ratios are presented as follows: Capital levels Actual Adequately capitalized Well capitalized As of June 30, 2017 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 109,129 12.76 % $ 68,444 8.00 % $ 85,555 10.00 % Bank 100,244 12.04 66,628 8.00 83,285 10.00 Tier I capital (to risk-weighted assets): Consolidated 101,021 11.81 51,333 6.00 51,333 6.00 Bank 92,136 11.06 49,971 6.00 66,628 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 101,021 11.81 38,500 4.50 N/A N/A Bank 92,136 11.06 37,478 4.50 54,135 6.50 Tier I capital (to average assets): Consolidated 101,021 9.17 44,078 4.00 N/A N/A Bank 92,136 8.43 43,712 4.00 54,640 5.00 Capital levels Actual Adequately capitalized Well capitalized As of December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 104,820 12.75 % $ 65,777 8.00 % $ 82,221 10.00 % Bank 96,478 12.10 63,792 8.00 79,740 10.00 Tier I capital (to risk-weighted assets): Consolidated 97,320 11.84 49,333 6.00 49,333 6.00 Bank 89,025 11.16 47,844 6.00 63,792 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 97,320 11.84 36,999 4.50 N/A N/A Bank 89,025 11.16 35,883 4.50 51,831 6.50 Tier I capital (to average assets): Consolidated 97,320 9.16 42,479 4.00 N/A N/A Bank 89,025 8.45 42,144 4.00 52,680 5.00

Note 3 - Stock-based Compensa19

Note 3 - Stock-based Compensation and Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Assumptions Used in Option Pricing Model	Six months ended June 30, 2017 2016 Risk free interest rate 1.48 % 1.14 % Dividend yield 3.19 % 3.78 % Volatility 17.89 % 22.62 % Expected life (years) 4.20 4.20
Stock Option Activity	Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2016 73,950 $ 27.14 Granted 25,000 37.60 Exercised (10,675 ) 22.24 Forfeited (100 ) 21.35 Outstanding at June 30, 2017 88,175 $ 30.71 3.09 $ 849 Exercisable at June 30, 2017 21,825 $ 24.33 1.15 $ 349 Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2015 82,875 $ 24.33 Granted 23,500 30.40 Exercised (17,980 ) 20.66 Forfeited (9,725 ) 25.61 Outstanding at June 30, 2016 78,670 $ 26.82 2.99 $ 407 Exercisable at June 30, 2016 23,545 $ 22.38 1.12 $ 226

Note 4 - Earnings Per Share &20

Note 4 - Earnings Per Share & Share Repurchase Plan (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Share	The following sets forth the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator for basic and diluted earnings per share - net income $ 2,386 $ 2,098 $ 5,246 $ 4,363 Denominator for basic earnings per share - weighted average shares outstanding 3,425,356 3,383,109 3,420,239 3,376,445 Effect of dilutive securities - employee stock options 17,852 8,766 16,027 8,389 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 3,443,208 3,391,875 3,436,266 3,384,834 Earnings per share - basic $ 0.70 $ 0.62 $ 1.53 $ 1.29 Earnings per share - diluted 0.69 0.62 1.53 1.29

Note 5 - Comprehensive Income21

Note 5 - Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2017
Other Comprehensive Income Loss Tax [Abstract]
Components of Accumulated Other Comprehensive Loss	The following shows the components of accumulated other comprehensive loss at June 30, 2017 and December 31, 2016: June 30, December 31, 2017 2016 Unrealized net holding losses on available-for-sale securities $ (3,596 ) $ (5,446 ) Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings (30 ) (247 ) Accumulated other comprehensive loss (3,626 ) (5,693 ) Tax effect 1,233 1,936 Accumulated other comprehensive loss, net of tax $ (2,393 ) $ (3,757 )
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)	The following tables present amounts reclassified out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2017 and 2016: Three months ended June 30, Amount reclassified from accumulated other comprehensive income Details about accumulated other comprehensive income 2017 2016 Affected line item in statement of income Unrealized net holding gains on available-for-sale securities $ 115 $ 137 Net gain on sale of investment securities Other-than-temporary impairment losses on investment securities — (122 ) Net other-than-temporary impairment losses on investment securities 115 15 Tax effect (40 ) (5 ) Provision for income taxes Total reclass out of accumulated other comprehensive income, net of tax $ 75 $ 10 Net of tax Six months ended June 30, Amount reclassified from accumulated other comprehensive income Details about accumulated other comprehensive income 2017 2016 Affected line item in statement of income Unrealized net holding gains on available-for-sale securities $ 864 $ 526 Net gain on sale of investment securities Other-than-temporary impairment losses on investment securities — (192 ) Net other-than-temporary impairment losses on investment securities 864 334 Tax effect (294 ) (114 ) Provision for income taxes Total reclass out of accumulated other comprehensive income, net of tax $ 570 $ 220 Net of tax

Note 6 - Investment Securities

Note 6 - Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2017
Investments Debt And Equity Securities [Abstract]
Investment Securities Available-for-sale	The amortized cost and estimated fair values of investment securities available-for-sale at June 30, 2017 and December 31, 2016 were as follows: Gross Gross unrealized unrealized Fair holding holding Amortized June 30, 2017 value gains losses cost U.S. Government agency $ 72,938 $ 11 $ (1,541 ) $ 74,468 State and municipal 78,687 940 (133 ) 77,880 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 141,358 379 (1,681 ) 142,660 Collateralized mortgage obligations (CMOs) 73,765 62 (1,469 ) 75,172 Pooled trust preferred 212 - (30 ) 242 Corporate debt 8,074 31 (19 ) 8,062 Equity 7,530 151 (327 ) 7,706 Total investment securities available-for-sale $ 382,564 $ 1,574 $ (5,200 ) $ 386,190 Gross Gross unrealized unrealized Fair holding holding Amortized December 31, 2016 value gains losses cost U.S. Government agency $ 76,650 $ 36 $ (2,118 ) $ 78,732 State and municipal 72,295 614 (398 ) 72,079 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 145,301 561 (2,241 ) 146,981 Collateralized mortgage obligations (CMOs) 77,415 109 (1,846 ) 79,152 Pooled trust preferred 2,281 263 (891 ) 2,909 Corporate debt 8,030 16 (57 ) 8,071 Equity 8,503 587 (328 ) 8,244 Total investment securities available-for-sale $ 390,475 $ 2,186 $ (7,879 ) $ 396,168
Investment Securities by Contractual Maturity	The amortized cost and estimated fair value of securities available-for-sale by contractual maturity at June 30, 2017 are shown in the following table. Amortized June 30, 2017 Fair value cost Due in one year or less $ 7,111 $ 7,069 Due after one year through five years 205,142 206,788 Due after five years through ten years 140,510 142,352 Due after ten years 22,271 22,275 Equity securities 7,530 7,706 Total investment securities available-for-sale $ 382,564 $ 386,190
Realized Gain (Loss) on Investments	The following table presents information related to the Company’s gains and losses on the sales of equity and debt securities, and losses recognized for the other-than-temporary impairment (“OTTI”) of these investments. Three months ended June 30, 2017 Three months ended June 30, 2016 Other-than- Other-than- Gross Gross temporary Gross Gross temporary realized realized impairment realized realized impairment gains losses losses Net gains (losses) gains losses losses Net gains (losses) Equity securities $ 131 $ — $ — $ 131 $ 36 $ — $ (122 ) $ (86 ) Debt securities 431 (447 ) — (16 ) 101 — — 101 Total $ 562 $ (447 ) $ — $ 115 $ 137 $ — $ (122 ) $ 15 Six months ended June 30, 2017 Six months ended June 30, 2016 Other-than- Other-than- Gross Gross temporary Gross Gross temporary realized realized impairment realized realized impairment gains losses losses Net gains gains losses losses Net gains Equity securities $ 856 $ — $ — $ 856 $ 417 $ — $ (192 ) $ 225 Debt securities 509 (501 ) — 8 182 (73 ) — 109 Total $ 1,365 $ (501 ) $ — $ 864 $ 599 $ (73 ) $ (192 ) $ 334
Credit-related Other-than-temporary Impairment	The table presents a summary of the cumulative credit-related other-than-temporary impairment charges recognized as components of earnings for debt securities still held by QNB: Six months ended June 30, 2017 2016 Balance, beginning of period $ 1,153 $ 1,153 Reductions: sale, pooled trust preferred (1,152 ) — Additions: Initial credit impairments — — Subsequent credit impairments — — Balance, end of period $ 1 $ 1,153
Securities in a Continuous Unrealized Loss Position	The following table indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2017 and December 31, 2016: Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2017 securities value losses value losses value losses U.S. Government agency 52 $ 69,935 $ (1,541 ) $ — $ — $ 69,935 $ (1,541 ) State and municipal 25 10,312 (113 ) 518 (20 ) 10,830 (133 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 90 126,077 (1,681 ) — — 126,077 (1,681 ) Collateralized mortgage obligations (CMOs) 65 53,910 (1,013 ) 14,000 (456 ) 67,910 (1,469 ) Pooled trust preferred 1 — — 212 (30 ) 212 (30 ) Corporate debt 3 3,016 (19 ) — — 3,016 (19 ) Equity 13 2,962 (276 ) 498 (51 ) 3,460 (327 ) Total 249 $ 266,212 $ (4,643 ) $ 15,228 $ (557 ) $ 281,440 $ (5,200 ) Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 securities value losses value losses value losses U.S. Government agency 55 $ 72,626 $ (2,118 ) $ — $ — $ 72,626 $ (2,118 ) State and municipal 70 29,280 (398 ) — — 29,280 (398 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 88 123,087 (2,241 ) — — 123,087 (2,241 ) Collateralized mortgage obligations (CMOs) 68 56,853 (1,269 ) 15,426 (577 ) 72,279 (1,846 ) Pooled trust preferred 5 — — 1,952 (891 ) 1,952 (891 ) Corporate debt 4 4,002 (57 ) — — 4,002 (57 ) Equity 16 2,985 (268 ) 888 (60 ) 3,873 (328 ) Total 306 $ 288,833 $ (6,351 ) $ 18,266 $ (1,528 ) $ 307,099 $ (7,879 )
Pooled Trust Preferred Securities	The following table provides additional information related to the pooled trust preferred security (PreTSL) as of June 30, 2017: Deal Class Book value Fair value Unrealized gains (losses) Realized OTTI credit loss (YTD 2017) Total recognized OTTI credit loss Moody's /Fitch ratings Current number of performing banks Current number of performing insurance companies Actual deferrals and defaults as a % of total collateral Total performing collateral as a % of outstanding bonds PreTSL IV Mezzanine * $ 242 $ 212 $ (30 ) $ — $ (1 ) B1/BB 5 — 18.0 % 141.6 %

Note 7 - Loans & Allowance fo23

Note 7 - Loans & Allowance for Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Major Classes of Loans	June 30 December 31, 2017 2016 Commercial: Commercial and industrial $ 140,218 $ 110,233 Construction 44,823 39,268 Secured by commercial real estate 276,738 255,188 Secured by residential real estate 68,704 68,731 State and political subdivisions 35,259 35,260 Retail: 1-4 family residential mortgages 51,138 47,124 Home equity loans and lines 71,791 71,525 Consumer 6,394 5,670 Total loans 695,065 632,999 Net unearned costs 148 80 Loans receivable $ 695,213 $ 633,079
Internal Risk Ratings and Payment Activity	June 30, 2017 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 132,360 $ 3,153 $ 4,705 $ — $ 140,218 Construction 44,819 — 4 — 44,823 Secured by commercial real estate 261,754 4,630 10,354 — 276,738 Secured by residential real estate 65,984 227 2,493 — 68,704 State and political subdivisions 35,259 — — — 35,259 Total $ 540,176 $ 8,010 $ 17,556 $ — $ 565,742 December 31, 2016 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 102,396 $ 686 $ 7,151 $ — $ 110,233 Construction 39,259 — 9 — 39,268 Secured by commercial real estate 238,290 5,185 11,713 — 255,188 Secured by residential real estate 65,169 231 3,331 — 68,731 State and political subdivisions 35,260 — — — 35,260 Total $ 480,374 $ 6,102 $ 22,204 $ — $ 508,680 June 30, 2017 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 50,264 $ 874 $ 51,138 Home equity loans and lines 71,679 112 71,791 Consumer 6,305 89 6,394 Total $ 128,248 $ 1,075 $ 129,323 December 31, 2016 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 46,858 $ 266 $ 47,124 Home equity loans and lines 71,436 89 71,525 Consumer 5,577 93 5,670 Total $ 123,871 $ 448 $ 124,319
Past Due Loans	June 30, 2017 30-59 past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 73 — — $ 73 $ 140,145 $ 140,218 Construction — — — — 44,823 44,823 Secured by commercial real estate 59 — $ 775 834 275,904 276,738 Secured by residential real estate 218 $ 204 155 577 68,127 68,704 State and political subdivisions — — — — 35,259 35,259 Retail: 1-4 family residential mortgages — — 481 481 50,657 51,138 Home equity loans and lines — 31 50 81 71,710 71,791 Consumer 23 7 10 40 6,354 6,394 Total $ 373 $ 242 $ 1,471 $ 2,086 $ 692,979 $ 695,065 December 31, 2016 30-59 days past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 463 — — $ 463 $ 109,770 $ 110,233 Construction 214 — — 214 39,054 39,268 Secured by commercial real estate 64 $ 395 $ 1,596 2,055 253,133 255,188 Secured by residential real estate — — 285 285 68,446 68,731 State and political subdivisions — — — — 35,260 35,260 Retail: 1-4 family residential mortgages 1,459 323 — 1,782 45,342 47,124 Home equity loans and lines 107 15 — 122 71,403 71,525 Consumer 14 2 — 16 5,654 5,670 Total $ 2,321 $ 735 $ 1,881 $ 4,937 $ 628,062 $ 632,999
Non-Performing Loans	June 30, 2017 90 due (still accruing) Non-accrual Commercial: Commercial and industrial $ — $ 4,467 Construction — — Secured by commercial real estate — 2,140 Secured by residential real estate — 1,771 State and political subdivisions — — Retail: 1-4 family residential mortgages — 874 Home equity loans and lines — 112 Consumer — 89 Total $ — $ 9,453 December 31, 2016 90 due (still accruing) Non-accrual Commercial: Commercial and industrial $ — $ 4,798 Construction — — Secured by commercial real estate — 3,007 Secured by residential real estate — 1,866 State and political subdivisions — — Retail: 1-4 family residential mortgages — 266 Home equity loans and lines — 89 Consumer — 93 Total $ — $ 10,119
Allowance for Loan Losses	Three months ended June 30, 2017 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,978 $ 191 — $ 8 $ 2,177 Construction 463 53 — — 516 Secured by commercial real estate 2,577 61 — 2 2,640 Secured by residential real estate 1,344 (156 ) — 12 1,200 State and political subdivisions 124 (1 ) — — 123 Retail: 1-4 family residential mortgages 415 24 — — 439 Home equity loans and lines 342 (25 ) — 2 319 Consumer 77 9 $ (18 ) 10 78 Unallocated 399 144 N/A N/A 543 Total $ 7,719 $ 300 $ (18 ) $ 34 $ 8,035 Three months ended June 30, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,334 $ 6 — $ 10 $ 1,350 Construction 352 77 — — 429 Secured by commercial real estate 2,292 (63 ) — 2 2,231 Secured by residential real estate 1,690 (162 ) $ (20 ) 42 1,550 State and political subdivisions 196 8 — — 204 Indirect lease financing 208 52 (43 ) 9 226 Retail: 1-4 family residential mortgages 352 (54 ) — — 298 Home equity loans and lines 352 (14 ) — 5 343 Consumer 69 15 (16 ) 5 73 Unallocated 711 135 N/A N/A 846 Total $ 7,556 $ — $ (79 ) $ 73 $ 7,550 Six months ended June 30, 2017 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,459 $ 698 — $ 20 $ 2,177 Construction 449 67 — — 516 Secured by commercial real estate 2,646 (10 ) — 4 2,640 Secured by residential real estate 1,760 (592 ) $ (3 ) 35 1,200 State and political subdivisions 123 — — — 123 Retail: 1-4 family residential mortgages 366 73 — — 439 Home equity loans and lines 353 (39 ) — 5 319 Consumer 76 22 (39 ) 19 78 Unallocated 162 381 N/A N/A 543 Total $ 7,394 $ 600 $ (42 ) $ 83 $ 8,035 Six months ended June 30, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,521 $ (50 ) $ (140 ) $ 19 $ 1,350 Construction 286 143 — — 429 Secured by commercial real estate 2,411 (184 ) — 4 2,231 Secured by residential real estate 1,812 (302 ) (20 ) 60 1,550 State and political subdivisions 222 (18 ) — — 204 Indirect lease financing 164 105 (52 ) 9 226 Retail: 1-4 family residential mortgages 350 (52 ) — — 298 Home equity loans and lines 428 (95 ) — 10 343 Consumer 76 16 (33 ) 14 73 Unallocated 284 562 N/A N/A 846 Total $ 7,554 $ 125 $ (245 ) $ 116 $ 7,550 June 30, 2017 December 31, 2016 Unpaid principal balance Related allowance Unpaid principal balance Related allowance TDRs with no specific allowance recorded $ 4,110 — $ 3,992 — TDRs with an allowance recorded 622 $ 311 1,382 $ 761 Total $ 4,732 $ 311 $ 5,374 $ 761
Loans by Loan Class Modified as TDRs	Three months ended June 30, 2017 2016 Number contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial: Secured by residential real estate — $ — $ — 1 $ 41 $ 41 Six months ended June 30, 2017 2016 Number contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial: Commercial and industrial — $ — $ — 6 $ 1,074 $ 1,069 Secured by residential real estate — — — 4 524 512 Total — $ — $ — 10 $ 1,598 $ 1,581
Loans Disaggregated by Impairment Method	Allowance for Loan Losses Loans Receivable June 30, 2017 Balance Balance to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 2,177 $ 964 $ 1,213 $ 140,218 $ 4,712 $ 135,506 Construction 516 — 516 44,823 4 44,819 Secured by commercial real estate 2,640 42 2,598 276,738 5,401 271,337 Secured by residential real estate 1,200 127 1,073 68,704 2,200 66,504 State and political subdivisions 123 — 123 35,259 — 35,259 Retail: 1-4 family residential mortgages 439 — 439 51,138 1,213 49,925 Home equity loans and lines 319 — 319 71,791 134 71,657 Consumer 78 — 78 6,394 89 6,305 Unallocated 543 N/A N/A N/A N/A N/A Total $ 8,035 $ 1,133 $ 6,359 $ 695,065 $ 13,753 $ 681,312 Allowance for Loan Losses Loans Receivable December 31, 2016 Balance Balance related to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 1,459 $ 696 $ 763 $ 110,233 $ 5,134 $ 105,099 Construction 449 — 449 39,268 224 39,044 Secured by commercial real estate 2,646 — 2,646 255,188 6,383 248,805 Secured by residential real estate 1,760 494 1,266 68,731 2,313 66,418 State and political subdivisions 123 — 123 35,260 — 35,260 Retail: 1-4 family residential mortgages 366 8 358 47,124 748 46,376 Home equity loans and lines 353 — 353 71,525 111 71,414 Consumer 76 — 76 5,670 93 5,577 Unallocated 162 N/A N/A N/A N/A N/A Total $ 7,394 $ 1,198 $ 6,034 $ 632,999 $ 15,006 $ 617,993
Impaired Loans	June 30, 2017 December 31, 2016 Recorded investment (after charge-offs) Unpaid principal balance Related allowance Recorded investment (after charge-offs) Unpaid principal balance Related allowance With no specific allowance recorded: Commercial: Commercial and industrial $ 2,235 $ 2,584 $ — $ 2,482 $ 2,862 $ — Construction 4 4 — 224 234 — Secured by commercial real estate 5,299 5,832 — 6,383 6,367 — Secured by residential real estate 1,607 2,037 — 1,046 1,438 — State and political subdivisions — — — — — — Retail: 1-4 family residential mortgages 1,213 1,256 — 570 589 — Home equity loans and lines 134 176 — 111 174 — Consumer 89 92 — 93 95 — Total $ 10,581 $ 11,981 $ — $ 10,909 $ 11,759 $ — With an allowance recorded: Commercial: Commercial and industrial $ 2,477 $ 2,686 $ 964 $ 2,652 $ 2,812 $ 696 Construction — — — — — — Secured by commercial real estate 102 105 42 — — — Secured by residential real estate 593 724 127 1,267 1,435 494 State and political subdivisions — — — — — — Retail: 1-4 family residential mortgages — — — 178 193 8 Home equity loans and lines — — — — — — Consumer — — — — — — Total $ 3,172 $ 3,515 $ 1,133 $ 4,097 $ 4,440 $ 1,198 Total: Commercial: Commercial and industrial $ 4,712 $ 5,270 $ 964 $ 5,134 $ 5,674 $ 696 Construction 4 4 — 224 234 — Secured by commercial real estate 5,401 5,937 42 6,383 6,367 — Secured by residential real estate 2,200 2,761 127 2,313 2,873 494 State and political subdivisions — — — — — — Retail: 1-4 family residential mortgages 1,213 1,256 — 748 782 8 Home equity loans and lines 134 176 — 111 174 — Consumer 89 92 — 93 95 — Total $ 13,753 $ 15,496 $ 1,133 $ 15,006 $ 16,199 $ 1,198 Six Months Ended June 30, 2017 2016 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial: Commercial and industrial $ 4,879 $ 8 $ 4,370 $ 35 Construction 86 2 429 10 Secured by commercial real estate 5,838 78 6,426 67 Secured by residential real estate 2,252 13 2,013 7 State and political subdivisions — — — — Indirect lease financing — — 112 — Retail: 1-4 family residential mortgages 955 7 576 5 Home equity loans and lines 102 1 139 1 Consumer 91 — — — Total $ 14,203 $ 109 $ 14,065 $ 125

Note 8 - Fair Value Measureme24

Note 8 - Fair Value Measurements and Disclosures (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis	June 30, 2017 Quoted in active markets for identical assets (Level 1) Significant other observable input (Level 2) Significant unobservable inputs (Level 3) Balance at end of period Recurring fair value measurements Securities available-for-sale U.S. Government agency securities — $ 72,938 — $ 72,938 State and municipal securities — 78,687 — 78,687 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 141,358 — 141,358 Collateralized mortgage obligations (CMOs) — 73,765 — 73,765 Pooled trust preferred securities — — $ 212 212 Corporate debt securities — 8,074 — 8,074 Equity securities $ 7,530 — — 7,530 Total securities available-for-sale $ 7,530 $ 374,822 $ 212 $ 382,564 Total recurring fair value measurements $ 7,530 $ 374,822 $ 212 $ 382,564 Nonrecurring fair value measurements Impaired loans $ — $ — $ 2,039 $ 2,039 Mortgage servicing rights — — 36 36 Total nonrecurring fair value measurements $ — $ — $ 2,075 $ 2,075 December 31, 2016 Quoted prices in active markets for identical assets (Level 1) Significant other observable input (Level 2) Significant unobservable inputs (Level 3) Balance at end of period Recurring fair value measurements Trading Securities State and municipal securities $ — $ 3,596 $ — $ 3,596 Securities available-for-sale U.S. Government agency securities — $ 76,650 — $ 76,650 State and municipal securities — 72,295 — 72,295 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 145,301 — 145,301 Collateralized mortgage obligations (CMOs) — 77,415 — 77,415 Pooled trust preferred securities — — $ 2,281 2,281 Corporate debt securities — 8,030 — 8,030 Equity securities $ 8,503 — — 8,503 Total securities available-for-sale $ 8,503 $ 379,691 $ 2,281 $ 390,475 Total recurring fair value measurements $ 8,503 $ 383,287 $ 2,281 $ 394,071 Nonrecurring fair value measurements Impaired loans $ — $ — $ 2,899 $ 2,899 Mortgage servicing rights — — 58 58 Total nonrecurring fair value measurements $ — $ — $ 2,957 $ 2,957
Quantitative Information about Assets Measured at Fair Value	Quantitative information about Level 3 fair value measurements June 30, 2017 Fair value Valuation techniques Unobservable input Value or range of values Impaired loans $ 526 Appraisal of collateral (1) Appraisal adjustments (2) -15% to -80% Liquidation expenses (3) -10% Impaired loans 14 Used commercial vehicle and equipment guides Guide value discounts (4) -25% Impaired loans $ 1,499 Financial statement values for UCC collateral Financial statement value discounts (5) -25% to -50% Mortgage servicing rights 36 Discounted cash flow Remaining term 2 to 27 yrs Discount rate 14% to 16% Quantitative information about Level 3 fair value measurements December 31, 2016 Fair value Valuation techniques Unobservable input Value or range of values Impaired loans $ 938 Appraisal of collateral (1) Appraisal adjustments (2) -10% to -80% Liquidation expenses (3) -10% Impaired loans 76 Used commercial vehicle and equipment guides Guide value discounts (4) 0% to -25% Impaired loans 1,880 Financial statement values for UCC collateral Financial statement value discounts (5) -20% to -50% Impaired loans 5 Agreement of sale (6) Mortgage servicing rights 58 Discounted cash flow Remaining term 2 to 27 yrs Discount rate 14% to 16%
Available-for-sale Securities Measured at Fair Value Using Significant Unobservable Inputs	Fair value measurements using significant unobservable inputs (Level 3) 2017 2016 Balance, January 1, $ 2,281 $ 2,653 Payments received (55 ) (197 ) Sale of securities (2,026 ) — Total gains or losses (realized/unrealized) Included in earnings (15 ) — Included in other comprehensive income 27 (56 ) Transfers in and/or out of Level 3 — — Balance, June 30, $ 212 $ 2,400
Financial and Off-balance Sheet Instruments	Fair value measurements June 30, 2017 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 15,248 $ 15,248 $ 15,248 — — Investment securities: Available-for-sale 382,564 382,564 7,530 $ 374,822 $ 212 Restricted investment in bank stocks 1,974 1,974 — 1,974 — Loans held-for-sale 530 539 — 539 — Net loans 687,178 694,371 — — 694,371 Mortgage servicing rights 485 571 — — 571 Accrued interest receivable 2,506 2,506 — 2,506 — Financial liabilities Deposits with no stated maturities $ 729,465 $ 729,465 $ 729,465 — $ — Deposits with stated maturities 221,849 221,628 — $ 221,628 — Short-term borrowings 66,907 66,907 66,907 — — Accrued interest payable 298 298 — 298 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — — Fair value measurements December 31, 2016 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 10,721 $ 10,721 $ 10,721 — — Investment securities: Trading 3,596 3,596 — $ 3,596 — Available-for-sale 390,475 390,475 8,503 379,691 $ 2,281 Restricted investment in bank stocks 1,017 1,017 — 1,017 — Loans held-for-sale 789 789 — 789 — Net loans 625,685 626,052 — — 626,052 Mortgage servicing rights 498 579 — — 579 Accrued interest receivable 3,128 3,128 — 3,128 — Financial liabilities Deposits with no stated maturities $ 687,773 $ 687,773 $ 687,773 — $ — Deposits with stated maturities 225,582 225,403 — $ 225,403 — Short-term borrowings 52,660 52,660 52,660 — — Accrued interest payable 335 335 — 335 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — —

Note 9 - Off-balance-sheet Fi25

Note 9 - Off-balance-sheet Financial Instruments and Guarantees (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Financial Instrument Commitments	A summary of the Bank's financial instrument commitments is as follows: June 30, December 31, 2017 2016 Commitments to extend credit and unused lines of credit $ 295,823 $ 277,216 Standby letters of credit 14,386 16,490 Total financial instrument commitments $ 310,209 $ 293,706

Note 10 - Regulatory Restrict26

Note 10 - Regulatory Restrictions (Tables)	6 Months Ended
	Jun. 30, 2017
Banking And Thrift [Abstract]
Capital Ratios and Regulatory Minimum Requirements	Capital levels Actual Adequately capitalized Well capitalized As of June 30, 2017 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 109,129 12.76 % $ 68,444 8.00 % $ 85,555 10.00 % Bank 100,244 12.04 66,628 8.00 83,285 10.00 Tier I capital (to risk-weighted assets): Consolidated 101,021 11.81 51,333 6.00 51,333 6.00 Bank 92,136 11.06 49,971 6.00 66,628 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 101,021 11.81 38,500 4.50 N/A N/A Bank 92,136 11.06 37,478 4.50 54,135 6.50 Tier I capital (to average assets): Consolidated 101,021 9.17 44,078 4.00 N/A N/A Bank 92,136 8.43 43,712 4.00 54,640 5.00 Capital levels Actual Adequately capitalized Well capitalized As of December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 104,820 12.75 % $ 65,777 8.00 % $ 82,221 10.00 % Bank 96,478 12.10 63,792 8.00 79,740 10.00 Tier I capital (to risk-weighted assets): Consolidated 97,320 11.84 49,333 6.00 49,333 6.00 Bank 89,025 11.16 47,844 6.00 63,792 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 97,320 11.84 36,999 4.50 N/A N/A Bank 89,025 11.16 35,883 4.50 51,831 6.50 Tier I capital (to average assets): Consolidated 97,320 9.16 42,479 4.00 N/A N/A Bank 89,025 8.45 42,144 4.00 52,680 5.00

Note 2 - Recent Accounting Pr27

Note 2 - Recent Accounting Pronouncements (Details Textual)	6 Months Ended
	Jun. 30, 2017USD ($)
New Accounting Pronouncement, Early Adoption, Effect [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	$ (116,000)

Note 3 - Stock-based Compensa28

Note 3 - Stock-based Compensation and Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 33	$ 26	$ 51	$ 42
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 129		$ 129
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			32 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			25,000	23,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			10,675	17,980
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	88,175	78,670	88,175	78,670	73,950	82,875
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 3.88	$ 3.79
The 2005 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized			200,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			184,200
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period			65,150
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			79,375
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	39,675		39,675
The 2015 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			48,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period			0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	48,500		48,500
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)	300,000		300,000
Employee Stock Option [Member] | The 2005 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Employee Stock Option [Member] | Minimum [Member] | The 2005 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			6 months
Employee Stock Option [Member] | Maximum [Member] | The 2005 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			5 years

Note 3 - Assumptions Used in Op

Note 3 - Assumptions Used in Option Pricing Model (Details)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk free interest rate	1.48%	1.14%
Dividend yield	3.19%	3.78%
Volatility	17.89%	22.62%
Expected life (years)	4 years 2 months 12 days	4 years 2 months 12 days

Note 3 - Stock Option Activity

Note 3 - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Outstanding-Number of options (in shares)	73,950	82,875
Granted-Number of options (in shares)	25,000	23,500
Exercised-Number of options (in shares)	(10,675)	(17,980)
Forfeited-Number of options (in shares)	(100)	(9,725)
Outstanding ending-Number of options (in shares)	88,175	78,670
Exercisable-Number of options (in shares)	21,825	23,545
Outstanding-Weighted average exercise price (in dollars per share)	$ 27.14	$ 24.33
Granted-Weighted average exercise price (in dollars per share)	37.60	30.40
Exercised-Weighted average exercise price (in dollars per share)	22.24	20.66
Forfeited-Weighted average exercise price (in dollars per share)	21.35	25.61
Outstanding ending-Weighted average exercise price (in dollars per share)	30.71	26.82
Exercisable-Weighted average exercise price (in dollars per share)	$ 24.33	$ 22.38
Outstanding ending-Weighted average remaining contractual term	3 years 1 month 2 days	2 years 11 months 26 days
Exercisable-Weighted average remaining contractual term	1 year 1 month 24 days	1 year 1 month 13 days
Outstanding ending-Aggregate intrinsic value	$ 849	$ 407
Exercisable-Aggregate intrinsic value	$ 349	$ 226

Note 4 - Computation of Basic a

Note 4 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Numerator for basic and diluted earnings per share - net income	$ 2,386	$ 2,098	$ 5,246	$ 4,363
Denominator for basic earnings per share - weighted average shares outstanding	3,425,356	3,383,109	3,420,239	3,376,445
Effect of dilutive securities - employee stock options	17,852	8,766	16,027	8,389
Denominator for diluted earnings per share - adjusted weighted average shares outstanding	3,443,208	3,391,875	3,436,266	3,384,834
Earnings per share - basic	$ 0.70	$ 0.62	$ 1.53	$ 1.29
Earnings per share - diluted	$ 0.69	$ 0.62	$ 1.53	$ 1.29

Note 4 - Earnings Per Share &32

Note 4 - Earnings Per Share & Share Repurchase Plan (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Earnings Per Share and Share Repurchase Plan [Line Items]
Treasury Stock, Shares	164,569		164,569		164,569
Treasury Stock, Value	$ 2,476		$ 2,476		$ 2,476
Share Repurchase Program 1 [Member]
Earnings Per Share and Share Repurchase Plan [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased	100,000		100,000
Treasury Stock, Shares, Acquired	0	0	0	0
Treasury Stock, Shares	57,883		57,883
Treasury Stock Shares Average Price Per Share Acquired	$ 16.97		$ 16.97
Treasury Stock, Value	$ 982		$ 982
Employee Stock Option [Member]
Earnings Per Share and Share Repurchase Plan [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	25,000	41,350	25,000	41,350

Note 5 - Components of Accumula

Note 5 - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	$ (3,626)	$ (5,693)
Tax effect	1,233	1,936
Accumulated other comprehensive loss, net of tax	(2,393)	(3,757)
Accumulated Net Investment Loss Attributable to Parent [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	(3,596)	(5,446)
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss	$ (30)	$ (247)

Note 5 - Amounts Reclassified O

Note 5 - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Income before income taxes	$ 3,231	$ 2,800	$ 7,213	$ 5,853
Tax effect	(845)	(702)	(1,967)	(1,490)
Net income	2,386	2,098	5,246	4,363
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Unrealized net holding gains on available-for-sale securities	115	137	864	526
Other-than-temporary impairment losses on investment securities		(122)		(192)
Income before income taxes	115	15	864	334
Tax effect	(40)	(5)	(294)	(114)
Net income	$ 75	$ 10	$ 570	$ 220

Note 6 - Investment Securitie35

Note 6 - Investment Securities (Details Textual)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)security	Jun. 30, 2017USD ($)security	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)security	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Investment Securities [Line Items]
Net (loss) gain on trading activities		$ 10,000	$ 52,000	$ 27,000	$ 86,000	$ (40,000)
Trading Securities						3,596,000
Trading Securities, Change in Unrealized Holding Gain (Loss)						69,000
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds		10,624,000	4,198,000	24,620,000	28,814,000
Available-for-sale Securities Pledged as Collateral	$ 171,738,000	171,738,000		171,738,000		$ 166,628,000
Income Tax Expense Benefit Related to Net Realized Gains Losses on Sales of Securities		40,000	5,000	294,000	114,000
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses				0	0
(Gain) loss on sale of investments		(115,000)	(137,000)	(864,000)	(526,000)
Recorded OTTI credit loss		0	122,000	$ 0	$ 192,000
Collateralized Debt Obligations [Member]
Investment Securities [Line Items]
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses		$ 0	$ 0
PreTSL IV [Member]
Investment Securities [Line Items]
Number Of Trust Preferred Securities | security	1	1		1
Recorded OTTI credit loss				$ 1,000
PreTSL [Member]
Investment Securities [Line Items]
Non-performing securities sold | security	5
Carrying value of securities	$ 2,235,000	$ 2,235,000		$ 2,235,000
Number of securities OTTI recorded | security	4
Recorded OTTI credit loss	$ 1,152,000
Amount of reduction in risk-based assets		$ 19,000,000
PreTSL [Member] | Non-interest Income [Member]
Investment Securities [Line Items]
(Gain) loss on sale of investments	$ 15,000

Note 6 - Investment Securitie36

Note 6 - Investment Securities Available-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale	$ 382,564	$ 390,475
Investment securities available-for-sale, gross unrealized holding gains	1,574	2,186
Investment securities available-for-sale, gross unrealized holding losses	(5,200)	(7,879)
Investment securities available-for-sale, amortized cost	386,190	396,168
US Government Agencies Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale	72,938	76,650
Investment securities available-for-sale, gross unrealized holding gains	11	36
Investment securities available-for-sale, gross unrealized holding losses	(1,541)	(2,118)
Investment securities available-for-sale, amortized cost	74,468	78,732
US States and Political Subdivisions Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale	78,687	72,295
Investment securities available-for-sale, gross unrealized holding gains	940	614
Investment securities available-for-sale, gross unrealized holding losses	(133)	(398)
Investment securities available-for-sale, amortized cost	77,880	72,079
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale	141,358	145,301
Investment securities available-for-sale, gross unrealized holding gains	379	561
Investment securities available-for-sale, gross unrealized holding losses	(1,681)	(2,241)
Investment securities available-for-sale, amortized cost	142,660	146,981
Collateralized Mortgage Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale	73,765	77,415
Investment securities available-for-sale, gross unrealized holding gains	62	109
Investment securities available-for-sale, gross unrealized holding losses	(1,469)	(1,846)
Investment securities available-for-sale, amortized cost	75,172	79,152
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale	212	2,281
Investment securities available-for-sale, gross unrealized holding gains		263
Investment securities available-for-sale, gross unrealized holding losses	(30)	(891)
Investment securities available-for-sale, amortized cost	242	2,909
Corporate Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale	8,074	8,030
Investment securities available-for-sale, gross unrealized holding gains	31	16
Investment securities available-for-sale, gross unrealized holding losses	(19)	(57)
Investment securities available-for-sale, amortized cost	8,062	8,071
Equity Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale	7,530	8,503
Investment securities available-for-sale, gross unrealized holding gains	151	587
Investment securities available-for-sale, gross unrealized holding losses	(327)	(328)
Investment securities available-for-sale, amortized cost	$ 7,706	$ 8,244

Note 6 - Investment Securitie37

Note 6 - Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]
Due in one year or less, Fair value	$ 7,111
Due after one year through five years, Fair value	205,142
Due after five years through ten years, Fair value	140,510
Due after ten years, Fair value	22,271
Equity securities, Fair value	7,530
Total investment securities available-for-sale, Fair value	382,564	$ 390,475
Due in one year or less, Amortized cost	7,069
Due after one year through five years, Amortized cost	206,788
Due after five years through ten years, Amortized cost	142,352
Due after ten years, Amortized cost	22,275
Equity securities, Amortized cost	7,706
Investment securities available-for-sale, amortized cost	$ 386,190	$ 396,168

Note 6 - Gross Realized Losses

Note 6 - Gross Realized Losses on Equity and Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Gross realized gains	$ 562	$ 137	$ 1,365	$ 599
Gross realized losses	(447)	0	(501)	(73)
Total other-than-temporary impairment loss on investment securities	0	(122)	0	(192)
Net gain on investment securities	115	15	864	334
Equity Securities [Member]
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Gross realized gains	131	36	856	417
Gross realized losses	0	0	0	0
Total other-than-temporary impairment loss on investment securities	0	(122)	0	(192)
Net gain on investment securities	131	(86)	856	225
Debt Securities [Member]
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Gross realized gains	431	101	509	182
Gross realized losses	(447)	0	(501)	(73)
Total other-than-temporary impairment loss on investment securities	0	0	0	0
Net gain on investment securities	$ (16)	$ 101	$ 8	$ 109

Note 6 - Credit-related Other-t

Note 6 - Credit-related Other-than-temporary Impairment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Investments Debt And Equity Securities [Abstract]
Balance, beginning of period	$ 1,153	$ 1,153
Reductions: sale, pooled trust preferred	(1,152)	0
Initial credit impairments	0	0
Subsequent credit impairments	0	0
Balance, end of period	$ 1	$ 1,153

Note 6 - Securities in a Contin

Note 6 - Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2017USD ($)security	Dec. 31, 2016USD ($)security
Schedule Of Available For Sale Securities [Line Items]
No. of securities | security	249	306
Securities in an unrealized loss position less than 12 months, fair value	$ 266,212	$ 288,833
Securities in an unrealized loss position less than 12 months, unrealized losses	(4,643)	(6,351)
Securities in an unrealized loss position 12 months or longer, fair value	15,228	18,266
Securities in an unrealized loss position 12 months or longer, unrealized losses	(557)	(1,528)
Securities in an unrealized loss position, fair value	281,440	307,099
Securities in an unrealized loss position, unrealized losses	$ (5,200)	$ (7,879)
US Government Agencies Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of securities | security	52	55
Securities in an unrealized loss position less than 12 months, fair value	$ 69,935	$ 72,626
Securities in an unrealized loss position less than 12 months, unrealized losses	(1,541)	(2,118)
Securities in an unrealized loss position, fair value	69,935	72,626
Securities in an unrealized loss position, unrealized losses	$ (1,541)	$ (2,118)
US States and Political Subdivisions Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of securities | security	25	70
Securities in an unrealized loss position less than 12 months, fair value	$ 10,312	$ 29,280
Securities in an unrealized loss position less than 12 months, unrealized losses	(113)	(398)
Securities in an unrealized loss position 12 months or longer, fair value	518
Securities in an unrealized loss position 12 months or longer, unrealized losses	(20)
Securities in an unrealized loss position, fair value	10,830	29,280
Securities in an unrealized loss position, unrealized losses	$ (133)	$ (398)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of securities | security	90	88
Securities in an unrealized loss position less than 12 months, fair value	$ 126,077	$ 123,087
Securities in an unrealized loss position less than 12 months, unrealized losses	(1,681)	(2,241)
Securities in an unrealized loss position, fair value	126,077	123,087
Securities in an unrealized loss position, unrealized losses	$ (1,681)	$ (2,241)
Collateralized Mortgage Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of securities | security	65	68
Securities in an unrealized loss position less than 12 months, fair value	$ 53,910	$ 56,853
Securities in an unrealized loss position less than 12 months, unrealized losses	(1,013)	(1,269)
Securities in an unrealized loss position 12 months or longer, fair value	14,000	15,426
Securities in an unrealized loss position 12 months or longer, unrealized losses	(456)	(577)
Securities in an unrealized loss position, fair value	67,910	72,279
Securities in an unrealized loss position, unrealized losses	$ (1,469)	$ (1,846)
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of securities | security	1	5
Securities in an unrealized loss position less than 12 months, fair value	$ 0	$ 0
Securities in an unrealized loss position less than 12 months, unrealized losses	0	0
Securities in an unrealized loss position 12 months or longer, fair value	212	1,952
Securities in an unrealized loss position 12 months or longer, unrealized losses	(30)	(891)
Securities in an unrealized loss position, fair value	212	1,952
Securities in an unrealized loss position, unrealized losses	$ (30)	$ (891)
Corporate Debt Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of securities | security	3	4
Securities in an unrealized loss position less than 12 months, fair value	$ 3,016	$ 4,002
Securities in an unrealized loss position less than 12 months, unrealized losses	(19)	(57)
Securities in an unrealized loss position, fair value	3,016	4,002
Securities in an unrealized loss position, unrealized losses	$ (19)	$ (57)
Equity Securities [Member]
Schedule Of Available For Sale Securities [Line Items]
No. of securities | security	13	16
Securities in an unrealized loss position less than 12 months, fair value	$ 2,962	$ 2,985
Securities in an unrealized loss position less than 12 months, unrealized losses	(276)	(268)
Securities in an unrealized loss position 12 months or longer, fair value	498	888
Securities in an unrealized loss position 12 months or longer, unrealized losses	(51)	(60)
Securities in an unrealized loss position, fair value	3,460	3,873
Securities in an unrealized loss position, unrealized losses	$ (327)	$ (328)

Note 6 - Pooled Trust Preferred

Note 6 - Pooled Trust Preferred Securities (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)bankInsuranceCompany	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)bankInsuranceCompany	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Schedule Of Available For Sale Securities [Line Items]
Investment securities available-for-sale, amortized cost	$ 386,190		$ 386,190		$ 396,168
Fair value	382,564		382,564		$ 390,475
Total recognized OTTI credit loss	0	$ (122)	$ 0	$ (192)
PreTSL IV [Member]
Schedule Of Available For Sale Securities [Line Items]
Class			Mezzanine*
Investment securities available-for-sale, amortized cost	242		$ 242
Fair value	$ 212		212
Unrealized gains (losses)			(30)
Realized OTTI credit loss			0
Total recognized OTTI credit loss			$ (1)
Moody's/Fitch ratings			B1/BB
Current number of performing banks | bank	5		5
Current number of performing insurance companies | InsuranceCompany	0		0
Actual deferrals and defaults as a % of total collateral			18.00%
Total performing collateral as a % of outstanding bonds			141.60%

Note 7 - Major Classes of Loans

Note 7 - Major Classes of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	$ 695,065	$ 632,999
Net unearned costs	148	80
Loans receivable	695,213	633,079
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	140,218	110,233
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	44,823	39,268
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	276,738	255,188
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	68,704	68,731
State and Political Subdivisions Portfolio Segment [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	35,259	35,260
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	6,394	5,670
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	51,138	47,124
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans and leases receivable	$ 71,791	$ 71,525

Note 7 - Loans & Allowance fo43

Note 7 - Loans & Allowance for Loan Losses (Details Textual)	6 Months Ended
	Jun. 30, 2017USD ($)contractloan	Jun. 30, 2016USD ($)contract	Dec. 31, 2016USD ($)
Accounts Notes And Loans Receivable [Line Items]
Bank Overdrafts	$ 100,000		$ 171,000
Financing Receivable, Modifications, Recorded Investment	$ 4,732,000		5,374,000
Number of TDRs | contract	0
Loans and Leases Receivable, Impaired, Commitment to Lend	$ 20,000		30,000
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	$ 3,000	$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract	1	0
Loan outstanding balance	$ 21,000
Consumer Mortgage Loan on Real Estate Number of Loan in Foreclosure | loan	3
Performing Financial Instruments [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Modifications, Recorded Investment	$ 1,393,000		1,819,000
Nonperforming Financial Instruments [Member]
Accounts Notes And Loans Receivable [Line Items]
Financing Receivable, Modifications, Recorded Investment	3,339,000		$ 3,555,000
Residential Portfolio Segment [Member]
Accounts Notes And Loans Receivable [Line Items]
Consumer Mortgage Loans in Process of Foreclosure, Amount	$ 531,000
Residential Portfolio Segment [Member] | Maximum [Member]
Accounts Notes And Loans Receivable [Line Items]
Loan to Value Ratio	80.00%

Note 7 - Internal Risk Ratings

Note 7 - Internal Risk Ratings and Payment Activity (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	$ 695,065	$ 632,999
Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	565,742	508,680
Pass [Member] | Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	540,176	480,374
Special Mention [Member] | Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	8,010	6,102
Substandard [Member] | Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	17,556	22,204
Doubtful [Member] | Excluding Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	140,218	110,233
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	44,823	39,268
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	276,738	255,188
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	68,704	68,731
Commercial Portfolio Segment [Member] | Pass [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	132,360	102,396
Commercial Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	44,819	39,259
Commercial Portfolio Segment [Member] | Pass [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	261,754	238,290
Commercial Portfolio Segment [Member] | Pass [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	65,984	65,169
Commercial Portfolio Segment [Member] | Special Mention [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	3,153	686
Commercial Portfolio Segment [Member] | Special Mention [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Special Mention [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	4,630	5,185
Commercial Portfolio Segment [Member] | Special Mention [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	227	231
Commercial Portfolio Segment [Member] | Substandard [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	4,705	7,151
Commercial Portfolio Segment [Member] | Substandard [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	4	9
Commercial Portfolio Segment [Member] | Substandard [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	10,354	11,713
Commercial Portfolio Segment [Member] | Substandard [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	2,493	3,331
Commercial Portfolio Segment [Member] | Doubtful [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
Commercial Portfolio Segment [Member] | Doubtful [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	35,259	35,260
State and Political Subdivisions Portfolio Segment [Member] | Pass [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	35,259	35,260
State and Political Subdivisions Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
State and Political Subdivisions Portfolio Segment [Member] | Substandard [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	0	0
State and Political Subdivisions Portfolio Segment [Member] | Doubtful [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	$ 0	$ 0

Note 7 - Retail Loans by Credit

Note 7 - Retail Loans by Credit Quality (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	$ 695,065	$ 632,999
Total Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	129,323	124,319
Performing Financial Instruments [Member] | Total Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	128,248	123,871
Nonperforming Financial Instruments [Member] | Total Retail Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	1,075	448
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	6,394	5,670
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	51,138	47,124
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	71,791	71,525
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	6,305	5,577
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	50,264	46,858
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	71,679	71,436
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	89	93
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	874	266
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment [Line Items]
Loans and leases receivable	$ 112	$ 89

Note 7 - Past Due Loans (Detail

Note 7 - Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	$ 2,086	$ 4,937
Loans current	692,979	628,062
Loans and leases receivable	695,065	632,999
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	373	2,321
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	242	735
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	1,471	1,881
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	73	463
Loans current	140,145	109,770
Loans and leases receivable	140,218	110,233
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	73	463
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	214
Loans current	44,823	39,054
Loans and leases receivable	44,823	39,268
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	214
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	834	2,055
Loans current	275,904	253,133
Loans and leases receivable	276,738	255,188
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	59	64
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	395
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	775	1,596
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	577	285
Loans current	68,127	68,446
Loans and leases receivable	68,704	68,731
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	218	0
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	204	0
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	155	285
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Loans current	35,259	35,260
Loans and leases receivable	35,259	35,260
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	0
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	481	1,782
Loans current	50,657	45,342
Loans and leases receivable	51,138	47,124
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	1,459
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	323
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	481	0
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	81	122
Loans current	71,710	71,403
Loans and leases receivable	71,791	71,525
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	0	107
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	31	15
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	50	0
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	40	16
Loans current	6,354	5,654
Loans and leases receivable	6,394	5,670
Retail Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	23	14
Retail Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	7	2
Retail Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans past due	$ 10	$ 0

Note 7 - Non-accrual Loans (Det

Note 7 - Non-accrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	$ 0	$ 0
Loans receivable	9,453	10,119
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	4,467	4,798
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	0	0
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	2,140	3,007
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	1,771	1,866
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	0	0
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	89	93
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	874	266
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
Loans receivable	0	0
Loans receivable	$ 112	$ 89

Note 7 - Allowance for Loan Los

Note 7 - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	$ 7,719	$ 7,556	$ 7,394	$ 7,554
Provision for (credit to) loan losses	300	0	600	125
Charge-offs	(18)	(79)	(42)	(245)
Recoveries	34	73	83	116
Allowance for loan losses, end of period	8,035	7,550	8,035	7,550
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	1,978	1,334	1,459	1,521
Provision for (credit to) loan losses	191	6	698	(50)
Charge-offs	0	0	0	(140)
Recoveries	8	10	20	19
Allowance for loan losses, end of period	2,177	1,350	2,177	1,350
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	463	352	449	286
Provision for (credit to) loan losses	53	77	67	143
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Allowance for loan losses, end of period	516	429	516	429
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	2,577	2,292	2,646	2,411
Provision for (credit to) loan losses	61	(63)	(10)	(184)
Charge-offs	0	0	0	0
Recoveries	2	2	4	4
Allowance for loan losses, end of period	2,640	2,231	2,640	2,231
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	1,344	1,690	1,760	1,812
Provision for (credit to) loan losses	(156)	(162)	(592)	(302)
Charge-offs	0	(20)	(3)	(20)
Recoveries	12	42	35	60
Allowance for loan losses, end of period	1,200	1,550	1,200	1,550
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	124	196	123	222
Provision for (credit to) loan losses	(1)	8	0	(18)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Allowance for loan losses, end of period	123	204	123	204
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	77	69	76	76
Provision for (credit to) loan losses	9	15	22	16
Charge-offs	(18)	(16)	(39)	(33)
Recoveries	10	5	19	14
Allowance for loan losses, end of period	78	73	78	73
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	415	352	366	350
Provision for (credit to) loan losses	24	(54)	73	(52)
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Allowance for loan losses, end of period	439	298	439	298
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	342	352	353	428
Provision for (credit to) loan losses	(25)	(14)	(39)	(95)
Charge-offs	0	0	0	0
Recoveries	2	5	5	10
Allowance for loan losses, end of period	319	343	319	343
Unallocated Financing Receivables [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period	399	711	162	284
Provision for (credit to) loan losses	144	135	381	562
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Allowance for loan losses, end of period	$ 543	846	$ 543	846
Finance Leases Portfolio Segment [Member]
Financing Receivable Allowance For Credit Losses [Line Items]
Allowance for loan losses, beginning of period		208		164
Provision for (credit to) loan losses		52		105
Charge-offs		(43)		(52)
Recoveries		9		9
Allowance for loan losses, end of period		$ 226		$ 226

Note 7 - Specific Reserve for L

Note 7 - Specific Reserve for Loans Modified as TDR's (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
TDRs with no specific allowance recorded - unpaid principal balance	$ 4,110	$ 3,992
TDRs with an allowance recorded - unpaid principal balance	622	1,382
Unpaid principal balance	4,732	5,374
TDRs with an allowance recorded - related allowance	$ 311	$ 761

Note 7 - Loans by Loan Class Mo

Note 7 - Loans by Loan Class Modified as TDRs (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016USD ($)contract	Jun. 30, 2017contract	Jun. 30, 2016USD ($)contract
Financing Receivable Modifications [Line Items]
Number of contracts | contract		0
Commercial Portfolio Segment [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | contract			10
Pre-modification outstanding recorded investment			$ 1,598
Post-modification outstanding recorded investment			$ 1,581
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | contract			6
Pre-modification outstanding recorded investment			$ 1,074
Post-modification outstanding recorded investment			$ 1,069
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Modifications [Line Items]
Number of contracts | contract	1		4
Pre-modification outstanding recorded investment	$ 41		$ 524
Post-modification outstanding recorded investment	$ 41		$ 512

Note 7 - Loans Disaggregated by

Note 7 - Loans Disaggregated by Impairment Method (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	$ 8,035	$ 7,719	$ 7,394	$ 7,550	$ 7,556	$ 7,554
Allowance for loan losses - individually evaluated for impairment	1,133		1,198
Allowance for loan losses - collectively evaluated for impairment	6,359		6,034
Loans and leases receivable	695,065		632,999
Loans - individually evaluated for impairment	13,753		15,006
Loans - collectively evaluated for impairment	681,312		617,993
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	2,177	1,978	1,459	1,350	1,334	1,521
Allowance for loan losses - individually evaluated for impairment	964		696
Allowance for loan losses - collectively evaluated for impairment	1,213		763
Loans and leases receivable	140,218		110,233
Loans - individually evaluated for impairment	4,712		5,134
Loans - collectively evaluated for impairment	135,506		105,099
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	516	463	449	429	352	286
Allowance for loan losses - individually evaluated for impairment	0		0
Allowance for loan losses - collectively evaluated for impairment	516		449
Loans and leases receivable	44,823		39,268
Loans - individually evaluated for impairment	4		224
Loans - collectively evaluated for impairment	44,819		39,044
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	2,640	2,577	2,646	2,231	2,292	2,411
Allowance for loan losses - individually evaluated for impairment	42		0
Allowance for loan losses - collectively evaluated for impairment	2,598		2,646
Loans and leases receivable	276,738		255,188
Loans - individually evaluated for impairment	5,401		6,383
Loans - collectively evaluated for impairment	271,337		248,805
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	1,200	1,344	1,760	1,550	1,690	1,812
Allowance for loan losses - individually evaluated for impairment	127		494
Allowance for loan losses - collectively evaluated for impairment	1,073		1,266
Loans and leases receivable	68,704		68,731
Loans - individually evaluated for impairment	2,200		2,313
Loans - collectively evaluated for impairment	66,504		66,418
State and Political Subdivisions Portfolio Segment [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	123	124	123	204	196	222
Allowance for loan losses - individually evaluated for impairment	0		0
Allowance for loan losses - collectively evaluated for impairment	123		123
Loans and leases receivable	35,259		35,260
Loans - individually evaluated for impairment	0		0
Loans - collectively evaluated for impairment	35,259		35,260
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	78	77	76	73	69	76
Allowance for loan losses - individually evaluated for impairment	0		0
Allowance for loan losses - collectively evaluated for impairment	78		76
Loans and leases receivable	6,394		5,670
Loans - individually evaluated for impairment	89		93
Loans - collectively evaluated for impairment	6,305		5,577
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	439	415	366	298	352	350
Allowance for loan losses - individually evaluated for impairment	0		8
Allowance for loan losses - collectively evaluated for impairment	439		358
Loans and leases receivable	51,138		47,124
Loans - individually evaluated for impairment	1,213		748
Loans - collectively evaluated for impairment	49,925		46,376
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	319	342	353	343	352	428
Allowance for loan losses - individually evaluated for impairment	0		0
Allowance for loan losses - collectively evaluated for impairment	319		353
Loans and leases receivable	71,791		71,525
Loans - individually evaluated for impairment	134		111
Loans - collectively evaluated for impairment	71,657		71,414
Unallocated Financing Receivables [Member]
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items]
Allowance for loan losses	$ 543	$ 399	$ 162	$ 846	$ 711	$ 284

Note 7 - Impaired Loans (Detail

Note 7 - Impaired Loans (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	$ 10,581		$ 10,909
Unpaid principal balance - with no specific allowance	11,981		11,759
Recorded investment - with an allowance	3,172		4,097
Unpaid principal balance - with an allowance	3,515		4,440
Related allowance	1,133		1,198
Unpaid principal balance	15,496		16,199
Recorded investment	13,753		15,006
Average recorded investment	14,203	$ 14,065
Interest income recognized	109	125
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	2,235		2,482
Unpaid principal balance - with no specific allowance	2,584		2,862
Recorded investment - with an allowance	2,477		2,652
Unpaid principal balance - with an allowance	2,686		2,812
Related allowance	964		696
Unpaid principal balance	5,270		5,674
Recorded investment	4,712		5,134
Average recorded investment	4,879	4,370
Interest income recognized	8	35
Commercial Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	4		224
Unpaid principal balance - with no specific allowance	4		234
Recorded investment - with an allowance	0		0
Unpaid principal balance - with an allowance	0		0
Related allowance	0		0
Unpaid principal balance	4		234
Recorded investment	4		224
Average recorded investment	86	429
Interest income recognized	2	10
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	5,299		6,383
Unpaid principal balance - with no specific allowance	5,832		6,367
Recorded investment - with an allowance	102		0
Unpaid principal balance - with an allowance	105		0
Related allowance	42		0
Unpaid principal balance	5,937		6,367
Recorded investment	5,401		6,383
Average recorded investment	5,838	6,426
Interest income recognized	78	67
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	1,607		1,046
Unpaid principal balance - with no specific allowance	2,037		1,438
Recorded investment - with an allowance	593		1,267
Unpaid principal balance - with an allowance	724		1,435
Related allowance	127		494
Unpaid principal balance	2,761		2,873
Recorded investment	2,200		2,313
Average recorded investment	2,252	2,013
Interest income recognized	13	7
State and Political Subdivisions Portfolio Segment [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	0		0
Unpaid principal balance - with no specific allowance	0		0
Recorded investment - with an allowance	0		0
Unpaid principal balance - with an allowance	0		0
Related allowance	0		0
Unpaid principal balance	0		0
Recorded investment	0		0
Average recorded investment	0	0
Interest income recognized	0	0
Retail Portfolio Segment [Member] | Consumer Loans [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	89		93
Unpaid principal balance - with no specific allowance	92		95
Recorded investment - with an allowance	0		0
Unpaid principal balance - with an allowance	0		0
Related allowance	0		0
Unpaid principal balance	92		95
Recorded investment	89		93
Average recorded investment	91	0
Interest income recognized	0	0
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	1,213		570
Unpaid principal balance - with no specific allowance	1,256		589
Recorded investment - with an allowance	0		178
Unpaid principal balance - with an allowance	0		193
Related allowance	0		8
Unpaid principal balance	1,256		782
Recorded investment	1,213		748
Average recorded investment	955	576
Interest income recognized	7	5
Retail Portfolio Segment [Member] | Home Equity Loans and Lines [Member]
Financing Receivable Impaired [Line Items]
Recorded investment - with no specific allowance	134		111
Unpaid principal balance - with no specific allowance	176		174
Recorded investment - with an allowance	0		0
Unpaid principal balance - with an allowance	0		0
Related allowance	0		0
Unpaid principal balance	176		174
Recorded investment	134		$ 111
Average recorded investment	102	139
Interest income recognized	1	1
Finance Leases Portfolio Segment [Member]
Financing Receivable Impaired [Line Items]
Average recorded investment	0	112
Interest income recognized	$ 0	$ 0

Note 8 - Financial Assets Measu

Note 8 - Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading Securities		$ 3,596
Investment securities available-for-sale	$ 382,564	390,475
Recurring fair value measurements	382,564	394,071
Nonrecurring fair value measurements	2,075	2,957
Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Nonrecurring fair value measurements	2,039	2,899
Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Nonrecurring fair value measurements	36	58
Fair Value, Inputs, Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	7,530	8,503
Recurring fair value measurements	7,530	8,503
Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading Securities		3,596
Investment securities available-for-sale	374,822	379,691
Recurring fair value measurements	374,822	383,287
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	212	2,281
Recurring fair value measurements	212	2,281
Nonrecurring fair value measurements	2,075	2,957
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Nonrecurring fair value measurements	2,039	2,899
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Nonrecurring fair value measurements	36	58
US Government Agencies Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	72,938	76,650
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	72,938	76,650
US States and Political Subdivisions Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	78,687	72,295
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	78,687	72,295
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	141,358	145,301
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	141,358	145,301
Collateralized Mortgage Obligations [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	73,765	77,415
Collateralized Mortgage Obligations [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	73,765	77,415
Pooled Trust Preferred Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	212	2,281
Pooled Trust Preferred Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	212	2,281
Corporate Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	8,074	8,030
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	8,074	8,030
Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	7,530	8,503
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities available-for-sale	$ 7,530	$ 8,503

Note 8 - Fair Value Measureme54

Note 8 - Fair Value Measurements and Disclosures (Details Textual)	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)securityissuer	Jun. 30, 2017USD ($)securityissuer	Jun. 30, 2016USD ($)
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Number of underlying issuers | issuer	5	5
Expected credit losses or prepayments		$ 0
Swap rate period		30 years
Discount rate		6.18%
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings		$ (15,000)	$ 0
Fair Value, Inputs, Level 3 [Member] | Collateralized Debt Obligations [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Number Of Trust Preferred Securities | security	1	1
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	$ 0	$ 0

Note 8 - Quantitative Informati

Note 8 - Quantitative Information about Assets Measured at Fair Value (Details) - USD ($) $ in Thousands		6 Months Ended		12 Months Ended
		Jun. 30, 2017		Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements		$ 2,075		$ 2,957
Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements		2,039		2,899
Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements		36		58
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements		2,075		2,957
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements		2,039		2,899
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements		36		58
Fair Value, Inputs, Level 3 [Member] | Appraisal Valuation Technique [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements	[1]	$ 526		$ 938
Nonrecurring fair value liquidation inputs	[2]	(10.00%)		(10.00%)
Fair Value, Inputs, Level 3 [Member] | Appraisal Valuation Technique [Member] | Impaired Loans [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[3]	(15.00%)	[1]	(10.00%)
Fair Value, Inputs, Level 3 [Member] | Appraisal Valuation Technique [Member] | Impaired Loans [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[3]	(80.00%)	[1]	(80.00%)
Fair Value, Inputs, Level 3 [Member] | Commercial Vehicle and Equipment Guides Valuation Technique [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements	[4]	$ 14		$ 76
Nonrecurring fair value range of value inputs	[4]	(25.00%)
Fair Value, Inputs, Level 3 [Member] | Commercial Vehicle and Equipment Guides Valuation Technique [Member] | Impaired Loans [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[4]			0.00%
Fair Value, Inputs, Level 3 [Member] | Commercial Vehicle and Equipment Guides Valuation Technique [Member] | Impaired Loans [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[4]			(25.00%)
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements	[5]	$ 1,499		$ 1,880
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[5]	25.00%		20.00%
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs	[5]	50.00%		50.00%
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow Valuation Technique [Member] | Mortgage Servicing Rights [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements		$ 36		$ 58
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow Valuation Technique [Member] | Mortgage Servicing Rights [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs		14.00%		14.00%
Nonrecurring fair value expected term		2 years		2 years
Fair Value, Inputs, Level 3 [Member] | Discounted Cash Flow Valuation Technique [Member] | Mortgage Servicing Rights [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value range of value inputs		16.00%		16.00%
Nonrecurring fair value expected term		27 years		27 years
Fair Value, Inputs, Level 3 [Member] | Agreement of Sale [Member] | Impaired Loans [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Nonrecurring fair value measurements	[6]			$ 5
[1]	Fair value is primarily determined through appraisals of the underlying collateral by independent parties, which generally includes various level 3 inputs which are not always identifiable.
[2]	Appraisals and pending agreements of sale are adjusted by management for estimated liquidation expenses. The range is presented as a percent of the initial appraised value or sale price.
[3]	Appraisals may be adjusted by management for qualitative factors such as economic conditions and the age of the appraisal. The range is presented as a percent of the initial appraised value.
[4]	If lendable value (lower than wholesale) is utilized then no additional discounts are taken. If lendable value is not provided, additional discounts are applied.
[5]	Values obtained from financial statements for UCC collateral (fixed assets, accounts receivable, and inventory) are discounted to estimated realizable liquidation value.
[6]	Fair value is determined by the net amount due.

Note 8 - Available-for-sale Sec

Note 8 - Available-for-sale Securities Measured at Fair Value Using Significant Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance, January 1,	$ 2,281	$ 2,653
Payments received	(55)	(197)
Sale of securities	(2,026)	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(15)	0
Included in other comprehensive income	27	(56)
Transfers in and/or out of Level 3	0	0
Balance, June 30,	$ 212	$ 2,400

Note 8 - Financial and Off-bala

Note 8 - Financial and Off-balance Sheet Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 15,248	$ 10,721	$ 57,949	$ 16,991
Trading		3,596
Investment securities available-for-sale	382,564	390,475
Restricted investment in bank stocks	1,974	1,017
Loans held-for-sale	530	789
Net loans	687,178	625,685
Mortgage servicing rights	485	498
Accrued interest receivable	2,506	3,128
Deposits with no stated maturities	951,314	913,355
Short-term borrowings	66,907	52,660
Accrued interest payable	298	335
Cash and cash equivalents	15,248	10,721
Restricted investment in bank stocks	1,974	1,017
Loans held-for-sale	539	789
Net loans	694,371	626,052
Mortgage servicing rights	571	579
Accrued interest receivable	2,506	3,128
Short-term borrowings	66,907	52,660
Accrued interest payable	298	335
Fair Value, Inputs, Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Investment securities available-for-sale	7,530	8,503
Cash and cash equivalents	15,248	10,721
Short-term borrowings	66,907	52,660
Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Trading		3,596
Investment securities available-for-sale	374,822	379,691
Restricted investment in bank stocks	1,974	1,017
Loans held-for-sale	539	789
Accrued interest receivable	2,506	3,128
Accrued interest payable	298	335
Fair Value, Inputs, Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Investment securities available-for-sale	212	2,281
Net loans	694,371	626,052
Mortgage servicing rights	571	579
With No Stated Maturities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Deposits with no stated maturities	729,465	687,773
Deposits with no stated maturities	729,465	687,773
With No Stated Maturities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Deposits with no stated maturities	729,465	687,773
With Stated Maturities [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Deposits with no stated maturities	221,849	225,582
Deposits with no stated maturities	221,628	225,403
With Stated Maturities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Deposits with no stated maturities	$ 221,628	$ 225,403

Note 9 - Financial Instrument C

Note 9 - Financial Instrument Commitments (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Commitments And Contingencies Disclosure [Line Items]
Total financial instrument commitments	$ 310,209	$ 293,706
Commitments to Extend Credit [Member]
Commitments And Contingencies Disclosure [Line Items]
Total financial instrument commitments	295,823	277,216
Standby Letters of Credit [Member]
Commitments And Contingencies Disclosure [Line Items]
Total financial instrument commitments	$ 14,386	$ 16,490

Note 9 - Financial Instrument59

Note 9 - Financial Instrument Commitments (Details Textual)	6 Months Ended
	Jun. 30, 2017
Minimum [Member]
Commitments And Contingencies Disclosure [Line Items]
Standby letters of credit expiration period	1 year
Maximum [Member]
Commitments And Contingencies Disclosure [Line Items]
Standby letters of credit expiration period	5 years

Note 10 - Capital Ratios and Re

Note 10 - Capital Ratios and Regulatory Minimum Requirements (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Consolidated Entities [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital	$ 109,129	$ 104,820
Tier 1 capital	101,021	97,320
Common equity tier 1 capital	101,021	97,320
Tier 1 leverage capital	$ 101,021	$ 97,320
Capital to risk-weighted assets	12.76%	12.75%
Tier 1 capital to risk-weighted assets	11.81%	11.84%
Common equity tier 1 capital to risk-weighted assets	11.81%	11.84%
Tier 1 leverage capital to average assets	9.17%	9.16%
Capital required for capital adequacy	$ 68,444	$ 65,777
Tier 1 capital required for capital adequacy	51,333	49,333
Common equity tier 1 capital required for capital adequacy	38,500	36,999
Tier 1 leverage capital required for capital adequacy	$ 44,078	$ 42,479
Capital required for capital adequacy to risk-weighted assets	8.00%	8.00%
Tier 1 capital required for capital adequacy to risk-weighted assets	6.00%	6.00%
Common equity tier 1 capital required for capital adequacy to risk-weighted assets	4.50%	4.50%
Tier 1 leverage capital required for capital adequacy to average assets	4.00%	4.00%
Capital required to be well capitalized	$ 85,555	$ 82,221
Tier 1 capital required to be well capitalized	$ 51,333	$ 49,333
Capital required to be well capitalized to risk-weighted assets	10.00%	10.00%
Tier 1 capital required to be well capitalized to risk-weighted assets	6.00%	6.00%
Bank [Member]
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items]
Capital	$ 100,244	$ 96,478
Tier 1 capital	92,136	89,025
Common equity tier 1 capital	92,136	89,025
Tier 1 leverage capital	$ 92,136	$ 89,025
Capital to risk-weighted assets	12.04%	12.10%
Tier 1 capital to risk-weighted assets	11.06%	11.16%
Common equity tier 1 capital to risk-weighted assets	11.06%	11.16%
Tier 1 leverage capital to average assets	8.43%	8.45%
Capital required for capital adequacy	$ 66,628	$ 63,792
Tier 1 capital required for capital adequacy	49,971	47,844
Common equity tier 1 capital required for capital adequacy	37,478	35,883
Tier 1 leverage capital required for capital adequacy	$ 43,712	$ 42,144
Capital required for capital adequacy to risk-weighted assets	8.00%	8.00%
Tier 1 capital required for capital adequacy to risk-weighted assets	6.00%	6.00%
Common equity tier 1 capital required for capital adequacy to risk-weighted assets	4.50%	4.50%
Tier 1 leverage capital required for capital adequacy to average assets	4.00%	4.00%
Capital required to be well capitalized	$ 83,285	$ 79,740
Tier 1 capital required to be well capitalized	66,628	63,792
Common equity tier 1 capital required to be well capitalized	54,135	51,831
Tier 1 leverage capital required to be well capitalized	$ 54,640	$ 52,680
Capital required to be well capitalized to risk-weighted assets	10.00%	10.00%
Tier 1 capital required to be well capitalized to risk-weighted assets	8.00%	8.00%
Common equity tier 1 capital required to be well capitalized to risk-weighted assets	6.50%	6.50%
Tier 1 leverage capital required to be well capitalized to average assets	5.00%	5.00%