Chemung Financial (CHMG) 10-Q 3 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 02, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	CHEMUNG FINANCIAL CORP
Entity Central Index Key	763,563
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding (shares)		4,732,550

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and due from financial institutions	$ 26,275	$ 28,205
Interest-bearing deposits in other financial institutions	99,410	45,957
Total cash and cash equivalents	125,685	74,162
Trading assets, at fair value	826	774
Securities available for sale, at estimated fair value	302,581	303,402
Securities held to maturity, estimated fair value of $3,912 at March 31, 2017 and $4,912 at December 31, 2016	3,721	4,705
FHLBNY and FRBNY Stock, at cost	3,597	4,041
Loans, net of deferred loan fees	1,234,251	1,200,290
Allowance for loan losses	(14,960)	(14,253)
Loans, net	1,219,291	1,186,037
Loans held for sale	20	412
Premises and equipment, net	28,206	28,923
Goodwill	21,824	21,824
Other intangible assets, net	2,719	2,945
Bank-owned life insurance	2,929	2,912
Accrued interest receivable and other assets	24,701	27,042
Total assets	1,736,100	1,657,179
Deposits:
Non-interest-bearing	432,062	417,812
Interest-bearing	1,112,189	1,038,531
Total deposits	1,544,251	1,456,343
Securities sold under agreements to repurchase	15,215	27,606
FHLBNY term advances	9,065	9,093
Long term capital lease obligation	4,671	4,722
Dividends payable	1,230	1,225
Accrued interest payable and other liabilities	13,411	14,442
Total liabilities	1,587,843	1,513,431
Shareholders' equity:
Common stock, $0.01 par value per share, 10,000,000 shares authorized; 5,310,076 issued at March 31, 2017 and December 31, 2016	53	53
Additional paid-in capital	45,901	45,603
Retained earnings	125,860	124,111
Treasury stock, at cost; 579,140 shares at March 31, 2017 and 597,843 shares at December 31, 2016	(14,801)	(15,265)
Accumulated other comprehensive loss	(8,756)	(10,754)
Total shareholders' equity	148,257	143,748
Total liabilities and shareholders' equity	$ 1,736,100	$ 1,657,179

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Securities held to maturity, estimated fair value	$ 3,912	$ 4,912
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	10,000,000	10,000,000
Common stock, shares issued (shares)	5,310,076	5,310,076
Treasury stock, at cost (shares)	579,140	597,843

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest and dividend income:
Loans, including fees	$ 12,499	$ 12,246
Taxable securities	1,422	1,437
Tax exempt securities	238	254
Interest-bearing deposits	155	12
Total interest and dividend income	14,314	13,949
Interest expense:
Deposits	538	507
Securities sold under agreements to repurchase	193	211
Borrowed funds	89	206
Total interest expense	820	924
Net interest income	13,494	13,025
Provision for loan losses	1,040	595
Net interest income after provision for loan losses	12,454	12,430
Non-interest income:
WMG fee income	2,109	2,012
Service charges on deposit accounts	1,184	1,135
Interchange revenue from debit card transactions	920	893
Net gains on securities transactions	0	908
Net gains on sales of loans held for sale	69	61
Net gains (losses) on sales of other real estate owned	17	(5)
Income from bank-owned life insurance	17	18
Other	531	579
Total non-interest income	4,847	5,601
Non-interest expenses:
Salaries and wages	5,275	5,183
Pension and other employee benefits	1,218	1,675
Net occupancy expenses	1,606	1,906
Furniture and equipment expenses	682	772
Data processing expense	1,604	1,714
Professional services	300	341
Amortization of intangible assets	226	258
Marketing and advertising expenses	249	222
Other real estate owned expenses	19	52
FDIC insurance	325	294
Loan expense	116	112
Other	1,425	1,479
Total non-interest expenses	13,045	14,008
Income before income tax expense	4,256	4,023
Income tax expense	1,277	1,316
Net income	$ 2,979	$ 2,707
Weighted average shares outstanding (shares)	4,790	4,750
Basic and diluted earnings per share (in dollars per share)	$ 0.62	$ 0.57

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 2,979	$ 2,707
Other comprehensive income
Unrealized holding gains on securities available for sale	3,166	3,109
Reclassification adjustment for gains realized in net income	0	(908)
Net unrealized gains	3,166	2,201
Tax effect	1,189	830
Net of tax amount	1,977	1,371
Change in funded status of defined benefit pension plan and other benefit plans:
Reclassification adjustment for amortization of prior service costs	(55)	(22)
Reclassification adjustment for amortization of net actuarial loss	88	396
Total before tax effect	33	374
Tax effect	12	141
Net of tax amount	21	233
Total other comprehensive income	1,998	1,604
Comprehensive income	$ 4,977	$ 4,311

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss
Balances at Dec. 31, 2015		$ 137,242	$ 53	$ 45,537	$ 118,973	$ (16,379)	$ (10,942)
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net income		2,707			2,707
Other comprehensive income		1,604					1,604
Restricted stock awards		48		48
Restricted stock units for directors' deferred compensation plan		23		23
Cash dividends declared		(1,220)			(1,220)
Distribution of shares of treasury stock for directors' compensation		262		19		243
Distribution of shares of treasury stock for employee stock compensation		210		15		195
Sale of treasury stock	[1]	170		10		160
Balances at Mar. 31, 2016		141,046	53	45,652	120,460	(15,781)	(9,338)
Balances at Dec. 31, 2016		143,748	53	45,603	124,111	(15,265)	(10,754)
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Net income		2,979			2,979
Other comprehensive income		1,998					1,998
Restricted stock awards		52		52
Restricted stock units for directors' deferred compensation plan		24		24
Cash dividends declared		(1,230)			(1,230)
Distribution of shares of treasury stock for directors' compensation		269		68		201
Distribution of shares of treasury stock for employee stock compensation		200		50		150
Sale of treasury stock	[1]	217		61		156
Forfeiture of 1,139 shares of restricted stock awards		0		43		(43)
Balances at Mar. 31, 2017		$ 148,257	$ 53	$ 45,901	$ 125,860	$ (14,801)	$ (8,756)
[1]	All treasury stock sales were completed at arm's length for adequate consideration with the Chemung Canal Trust Company Profit Sharing, Savings, and Investment Plan and the Chemung Canal Trust Company - Finger Lakes Profit Sharing, Savings, and Investment Plan, which are defined contribution plans sponsored by the Bank.

CONSOLIDATED STATEMENTS OF SHA7

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Stockholders' Equity [Abstract]
Cash dividends declared (in dollars per share)	$ 0.26	$ 0.26
Distribution of shares of treasury stock for directors' compensation (in shares)	7,880	9,532
Distribution of shares of treasury stock for employee stock compensation (in shares)	5,861	7,661
Sale of shares of treasury stock (in shares)	6,101	6,252
Restricted stock awards, forfeited (in shares)	1,139

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,979	$ 2,707
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible assets	226	258
Provision for loan losses	1,040	595
Depreciation and amortization of fixed assets	960	1,114
Amortization of premiums on securities, net	357	478
Gains on sales of loans held for sale, net	(69)	(61)
Proceeds from sales of loans held for sale	3,634	2,823
Loans originated and held for sale	(3,173)	(2,279)
Net gains on trading assets	(32)	(9)
Net gains on securities transactions	0	(908)
Net (gains) losses on sales of other real estate owned	(17)	5
Purchase of trading assets	(20)	(24)
Expense related to restricted stock units for directors' deferred compensation plan	24	23
Expense related to employee stock compensation	200	210
Expense related to employee restricted stock awards	52	48
Income from bank-owned life insurance	(17)	(18)
Decrease in other assets and accrued interest receivable	2,290	2,107
Decrease in accrued interest payable	(38)	(2)
Decrease in other liabilities	(1,892)	(1,246)
Net cash provided by operating activities	6,504	5,821
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales and calls of securities available for sale	0	15,422
Proceeds from maturities and principal collected on securities available for sale	9,289	7,545
Proceeds from maturities and principal collected on securities held to maturity	1,164	586
Purchases of securities available for sale	(5,659)	0
Purchases of securities held to maturity	(180)	(597)
Purchase of FHLBNY and FRBNY stock	(6)	(5,146)
Redemption of FHLBNY and FRBNY stock	450	5,764
Purchases of premises and equipment	(243)	(337)
Proceeds from sales of other real estate owned	101	34
Net increase in loans	(34,327)	(18,739)
Net cash (used in) provided by investing activities	(29,411)	4,532
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in demand deposits, interest-bearing demand accounts, savings accounts, and insured money market accounts	91,400	36,495
Net decrease in time deposits	(3,492)	(2,538)
Net increase (decrease) in securities sold under agreements to repurchase	(12,391)	372
Repayments of FHLBNY overnight advances, net	0	(13,900)
Repayments of FHLBNY long term advances	(28)	(28)
Payments made on capital lease	(51)	(36)
Sale of treasury stock	217	170
Cash dividends paid	(1,225)	(1,214)
Net cash provided by financing activities	74,430	19,321
Net increase in cash and cash equivalents	51,523	29,674
Cash and cash equivalents, beginning of period	74,162	26,185
Cash and cash equivalents, end of period	125,685	55,859
Cash paid for:
Interest	858	926
Income taxes	0	0
Supplemental disclosure of non-cash activity:
Transfer of loans to other real estate owned	33	151
Dividends declared, not yet paid	1,230	1,220
Distribution of treasury stock for directors' compensation	269	262
Distribution of treasury stock for deferred directors' compensation	0
Assets acquired through long term capital lease obligations	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The Corporation, through its wholly-owned subsidiaries, the Bank and CFS, provides a wide range of banking, financing, fiduciary and other financial services to its clients. The Corporation and the Bank are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. CRM, a wholly-owned subsidiary of the Corporation which was formed and began operations on May 31, 2016, is a Nevada-based captive insurance company which insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. CRM pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. CRM is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. These financial statements include the accounts of the Corporation and its subsidiaries, and all significant intercompany balances and transactions are eliminated in consolidation. Amounts in the prior periods' consolidated financial statements are reclassified whenever necessary to conform to the current period's presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, an amendment to Revenue from Contracts with Customers (Topic 606) . The objective of this amendment is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are in the scope of other standards. In August 2015, the FASB issued ASU 2015-14 to defer for one year the effective date of the new revenue standard. The requirements are effective for annual periods and interim periods within fiscal years beginning after December 15, 2017. During 2016, the FASB issued further implementation guidance regarding revenue recognition. This additional guidance included clarification on certain principal versus agent considerations within the implementation of the guidance as well as clarification related to identifying performance obligations and licensing, assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. The Corporation intends to adopt the new revenue guidance as of January 1, 2018 and does not expect a significant change upon adoption of the standard, as the new standard will not materially change the way the Corporation currently records revenue for its WMG and fee income from mortgage servicing fees, financial guarantees, and deposit related fees. In January 2016, the FASB issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) . The objectives of the ASU are to (1) require equity investments to be measured at fair value, with changes in fair value recognized in net income, (2) simplify the impairment assessment of equity investments without readily determinable fair values, (3) eliminate the requirement to disclose methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet, (4) require the use of the exit price notion when measuring the fair value of financial instruments, and (5) clarify the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Corporation intends to adopt the new guidance as of January 1, 2018 and believes the ASU will not have a material impact on its consolidated financial statements, as the Corporation's equity investment portfolio is less than $1.0 million as of March 31, 2017. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, though early adoption is permitted. The Corporation intends to adopt the new lease guidance as of January 1, 2019 and is currently evaluating the impact that adoption of these updates will have on its consolidated financial statements. Currently, the Corporation believes the implementation of this ASU will create a right of use asset of less than $5.0 million for the Corporation's 13 leased facilities and a related capital obligation of the same amount as of January 1, 2019. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The objectives of the ASU are to simplify accounting for a stock payment's tax consequences and amend how excess tax benefits and a business's payments to cover the tax bills for the shares' recipients should be classified. The amendments allow companies to estimate the number of stock awards they expect to vest, and they revise the withholding requirements for classifying stock awards as equity. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2016, though early adoption is permitted. The adoption of ASU 2016-09 did not have a significant impact on the Corporation's consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2019, though entities may adopt the amendments earlier for fiscal year beginning after December 15, 2018. The Corporation is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. The Corporation anticipates that the adoption of the CECL model will result in an increase to the Corporation's allowance for loan losses. The Corporation has established a committee to oversee the implementation of CECL. This committee is currently assessing the data and system requirements necessary for adoption. The Corporation plans to run its current incurred loss model and a CECL model concurrently for 12 months prior to the adoption of this guidance on January 1, 2020. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The objective of the ASU is to reduce the existing diversity in practice relating to eight specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows and application of the predominance principal. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, though early adoption is permitted. The adoption of the ASU is not expected to have a significant impact on the Corporation's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The objective of the ASU is to simplify the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Additionally, the ASU removes the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of the ASU is not expected to have a significant impact on the Corporation's consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost . The objective of the ASU is to improve guidance related to the presentation of defined benefit costs in the income statement. Specifically, the ASU requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Additionally, the ASU allows only the service cost component to be eligible for capitalization, when applicable. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of the ASU is not expected to have a significant impact on the Corporation's consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The objective of the ASU is to align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. The amendment requires that the premium be amortized to the earlies call date, but does not require an accounting change for securities held at a discount, instead, the discount continues to be amortized to maturity. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. The adoption of the ASU is not expected to have a significant impact on the Corporation's consolidated financial statements.

EARNING PER COMMON SHARE

EARNING PER COMMON SHARE	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
EARNING PER COMMON SHARE	EARNING PER COMMON SHARE (shares in thousands) Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares, including those related to directors’ restricted stock units and directors’ stock compensation, are considered outstanding and are included in the computation of basic earnings per share. All outstanding unvested share based payment awards that contain rights to non-forfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur. Earnings per share were computed by dividing net income by 4,790 and 4,750 weighted average shares outstanding for the three -month periods ended March 31, 2017 and 2016 , respectively. There were no common stock equivalents during the three -month periods ended March 31, 2017 or 2016 .

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
SECURITIES	SECURITIES Amortized cost and estimated fair value of securities available for sale are as follows (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Obligations of U.S. Government and U.S. Government sponsored enterprises $ 17,295 $ 145 $ — $ 17,440 Mortgage-backed securities, residential 244,049 319 4,690 239,678 Obligations of states and political subdivisions 44,007 288 140 44,155 Corporate bonds and notes 248 3 — 251 SBA loan pools 550 1 1 550 Corporate stocks 265 242 — 507 Total $ 306,414 $ 998 $ 4,831 $ 302,581 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Obligations of U.S. Government and U.S. Government sponsored enterprises $ 17,300 $ 155 $ — $ 17,455 Mortgage-backed securities, residential 253,156 202 7,492 245,866 Obligations of states and political subdivisions 38,843 209 312 38,740 Corporate bonds and notes 249 1 — 250 SBA loan pools 568 3 1 570 Corporate stocks 285 236 — 521 Total $ 310,401 $ 806 $ 7,805 $ 303,402 Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Obligations of states and political subdivisions $ 2,741 $ 194 $ — $ 2,935 Time deposits with other financial institutions 980 — 3 977 Total $ 3,721 $ 194 $ 3 $ 3,912 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Obligations of states and political subdivisions $ 3,725 $ 206 $ — $ 3,931 Time deposits with other financial institutions 980 1 — 981 Total $ 4,705 $ 207 $ — $ 4,912 The amortized cost and estimated fair value of debt securities are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands): March 31, 2017 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 8,197 $ 8,224 $ 866 $ 873 After one, but within five years 33,091 33,411 2,583 2,729 After five, but within ten years 17,184 17,168 272 310 After ten years 3,078 3,043 — — 61,550 61,846 3,721 3,912 Mortgage-backed securities, residential 244,049 239,678 — — SBA loan pools 550 550 — — Total $ 306,149 $ 302,074 $ 3,721 $ 3,912 The proceeds from sales and calls of securities resulting in gains or losses for the three months ended March 31, 2017 and 2016 are listed below (in thousands): 2017 2016 Proceeds $ — $ 15,422 Gross gains — 908 Gross losses — — Tax expense — 343 The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2017 and December 31, 2016 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or longer Total March 31, 2017 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities, residential $ 220,708 $ 4,690 $ — $ — $ 220,708 $ 4,690 Obligations of states and political subdivisions 12,815 140 — — 12,815 140 SBA loan pools — — 219 1 219 1 Total temporarily impaired securities $ 233,523 $ 4,830 $ 219 $ 1 $ 233,742 $ 4,831 Less than 12 months 12 months or longer Total December 31, 2016 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities, residential $ 233,843 $ 7,492 $ — $ — $ 233,843 $ 7,492 Obligations of states and political subdivisions 25,724 312 — — 25,724 312 SBA loan pools — — 225 1 225 1 Total temporarily impaired securities $ 259,567 $ 7,804 $ 225 $ 1 $ 259,792 $ 7,805 Other-Than-Temporary Impairment As of March 31, 2017 , the majority of the Corporation’s unrealized losses in the investment securities portfolio related to mortgage-backed securities. At March 31, 2017 , all of the unrealized losses related to mortgage-backed securities were issued by U.S. government sponsored entities, Fannie Mae and Freddie Mac. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because it is not likely that the Corporation will be required to sell these securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired at March 31, 2017 .

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands): March 31, 2017 December 31, 2016 Commercial and agricultural: Commercial and industrial $ 177,575 $ 176,201 Agricultural 500 360 Commercial mortgages: Construction 51,706 46,387 Commercial mortgages, other 550,906 522,269 Residential mortgages 198,020 198,493 Consumer loans: Credit cards 1,409 1,476 Home equity lines and loans 99,032 98,590 Indirect consumer loans 138,273 139,572 Direct consumer loans 16,830 16,942 Total loans, net of deferred origination fees and costs $ 1,234,251 $ 1,200,290 Interest receivable on loans 3,136 3,192 Total recorded investment in loans $ 1,237,387 $ 1,203,482 The Corporation's concentrations of credit risk by loan type are reflected in the preceding table. The concentrations of credit risk with standby letters of credit, committed lines of credit and commitments to originate new loans generally follow the loan classifications in the table above. The following tables present the activity in the allowance for loan losses by portfolio segment for the three -month periods ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 1,589 $ 7,270 $ 1,523 $ 3,871 $ 14,253 Charge-offs (5 ) — (12 ) (427 ) (444 ) Recoveries 24 1 17 69 111 Net recoveries (charge-offs) 19 1 5 (358 ) (333 ) Provision 42 478 (16 ) 536 1,040 Ending balance $ 1,650 $ 7,749 $ 1,512 $ 4,049 $ 14,960 Three Months Ended March 31, 2016 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 1,831 $ 7,112 $ 1,464 $ 3,853 $ 14,260 Charge-offs (8 ) — — (443 ) (451 ) Recoveries 32 7 — 84 123 Net recoveries (charge-offs) 24 7 — (359 ) (328 ) Provision (60 ) 413 18 224 595 Ending balance $ 1,795 $ 7,532 $ 1,482 $ 3,718 $ 14,527 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 845 $ — $ 153 $ 998 Collectively evaluated for impairment 1,650 6,845 1,487 3,896 13,878 Loans acquired with deteriorated credit quality — 59 25 — 84 Total ending allowance balance $ 1,650 $ 7,749 $ 1,512 $ 4,049 $ 14,960 December 31, 2016 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 735 $ — $ 141 $ 876 Collectively evaluated for impairment 1,589 6,476 1,498 3,730 13,293 Loans acquired with deteriorated credit quality — 59 25 — 84 Total ending allowance balance $ 1,589 $ 7,270 $ 1,523 $ 3,871 $ 14,253 March 31, 2017 Loans: Commercial Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 649 $ 11,969 $ 390 $ 432 $ 13,440 Loans collectively evaluated for impairment 177,885 590,922 198,007 255,763 1,222,577 Loans acquired with deteriorated credit quality — 1,275 95 — 1,370 Total ending loans balance $ 178,534 $ 604,166 $ 198,492 $ 256,195 $ 1,237,387 December 31, 2016 Loans: Commercial Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 693 $ 10,382 $ 396 $ 455 $ 11,926 Loans collectively evaluated for impairment 176,334 558,451 198,474 256,879 1,190,138 Loans acquired with deteriorated credit quality — 1,323 95 — 1,418 Total ending loans balance $ 177,027 $ 570,156 $ 198,965 $ 257,334 $ 1,203,482 The following table presents loans individually evaluated for impairment recognized by class of loans as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 With no related allowance recorded: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Commercial and agricultural: Commercial and industrial $ 646 $ 649 $ — $ 690 $ 693 $ — Commercial mortgages: Construction 1,558 1,559 — 277 278 — Commercial mortgages, other 6,133 6,144 — 8,792 7,857 — Residential mortgages 389 390 — 395 396 — Consumer loans: Home equity lines and loans 72 72 — 93 95 — With an allowance recorded: Commercial mortgages: Commercial mortgages, other 5,206 4,266 845 2,245 2,247 735 Consumer loans: Home equity lines and loans 360 360 153 360 360 141 Total $ 14,364 $ 13,440 $ 998 $ 12,852 $ 11,926 $ 876 The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans as of the three -month periods ended March 31, 2017 and 2016 (in thousands): Three Months Ended Three Months Ended With no related allowance recorded: Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial and agricultural: Commercial and industrial $ 671 $ 9 $ 1,266 $ 13 Commercial mortgages: Construction 919 3 348 4 Commercial mortgages, other 7,000 59 7,395 68 Residential mortgages 393 2 273 — Consumer loans: Home equity lines & loans 84 1 107 1 With an allowance recorded: Commercial and agricultural: Commercial and industrial — — 9 — Commercial mortgages: Commercial mortgages, other 3,257 1 4,845 1 Consumer loans: Home equity lines and loans 360 — 364 — Total $ 12,684 $ 75 $ 14,607 $ 87 (1) Cash basis interest income approximates interest income recognized. The following tables present the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of March 31, 2017 and December 31, 2016 (in thousands): Non-accrual Loans Past Due 90 Days or More and Still Accruing March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 Commercial and agricultural: Commercial and industrial $ — $ — $ 9 $ 2 Commercial mortgages: Construction 1,308 19 — — Commercial mortgages, other 5,639 5,454 — — Residential mortgages 3,524 4,201 — — Consumer loans: Credit cards — — 18 11 Home equity lines and loans 1,647 1,670 — — Indirect consumer loans 765 654 — — Direct consumer loans 31 45 — — Total $ 12,914 $ 12,043 $ 27 $ 13 The following tables present the aging of the recorded investment in loans as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Acquired with Deteriorated Credit Quality Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 155 $ 1 $ 9 $ 165 $ — $ 177,868 $ 178,033 Agricultural — — — — — 501 501 Commercial mortgages: Construction — — 1,289 1,289 — 50,551 51,840 Commercial mortgages, other 941 3,361 2,522 6,824 1,275 544,227 552,326 Residential mortgages 2,276 254 1,758 4,288 95 194,109 198,492 Consumer loans: Credit cards 17 13 18 48 — 1,361 1,409 Home equity lines and loans 289 209 1,102 1,600 — 97,691 99,291 Indirect consumer loans 1,538 313 488 2,339 — 136,264 138,603 Direct consumer loans 68 2 8 78 — 16,814 16,892 Total $ 5,284 $ 4,153 $ 7,194 $ 16,631 $ 1,370 $ 1,219,386 $ 1,237,387 December 31, 2016 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Acquired with Deteriorated Credit Quality Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 160 $ 7 $ 2 $ 169 $ — $ 176,497 $ 176,666 Agricultural — — — — — 361 361 Commercial mortgages: Construction — 1,177 — 1,177 — 45,333 46,510 Commercial mortgages, other 652 4,460 2,412 7,524 1,323 514,799 523,646 Residential mortgages 2,100 436 2,383 4,919 95 193,951 198,965 Consumer loans: Credit cards 3 9 11 23 — 1,453 1,476 Home equity lines and loans 227 — 1,149 1,376 — 97,477 98,853 Indirect consumer loans 1,773 287 542 2,602 — 137,391 139,993 Direct consumer loans 54 7 22 83 — 16,929 17,012 Total $ 4,969 $ 6,383 $ 6,521 $ 17,873 $ 1,418 $ 1,184,191 $ 1,203,482 Troubled Debt Restructurings: A modification of a loan may result in classification as a TDR when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Corporation offers various types of modifications which may involve a change in the schedule of payments, a reduction in the interest rate, an extension of the maturity date, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, requesting additional collateral, releasing collateral for consideration, substituting or adding a new borrower or guarantor, a permanent reduction of the recorded investment in the loan or a permanent reduction of the interest on the loan. As of March 31, 2017 and December 31, 2016 , the Corporation has a recorded investment in TDRs of $10.3 million and $10.2 million , respectively. There were specific reserves of $0.9 million allocated for TDRs at both March 31, 2017 and December 31, 2016 . As of March 31, 2017 , TDRs totaling $5.9 million were accruing interest under the modified terms and $4.4 million were on non-accrual status. As of December 31, 2016 , TDRs totaling $5.8 million were accruing interest under the modified terms and $4.4 million were on non-accrual status. The Corporation had committed no additional amounts as of both March 31, 2017 and December 31, 2016 , to customers with outstanding loans that are classified as TDRs. During the three-month periods ended March 31, 2017 and 2016 , the terms of certain loans were modified as TDRs. The modification of the terms of a commercial mortgage loan during the three months ended March 31, 2017 included a reduction of the scheduled amortized payments of the loan for greater than a three month period. The modification of the terms of a residential mortgage loan performed during the three-month period ended March 31, 2016 included a reduction in the stated interest rate for three years and a corresponding reduction of the schedule amortized payments of the loan due to the lower interest rate. Additionally, $4 thousand of interest and past due escrow payments were capitalized on the restructured loan. The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2017 and March 31, 2016 (dollars in thousands): March 31, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial mortgages: Commercial mortgages, other 1 $ 166 $ 166 Total 1 $ 166 $ 166 March 31, 2016 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Residential mortgages 1 $ 121 $ 125 Total 1 $ 121 $ 125 The TDRs described above did no t increase the allowance for loan losses and resulted in no charge-offs during the three-month periods ended March 31, 2017 and March 31, 2016 . A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no payment defaults on any loans previously modified as TDRs within twelve months following the modification during the three- month period ended March 31, 2017 . The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the three months ended March 31, 2016 : Number of Loans Recorded Investment Commercial mortgages: Commercial mortgages, other 2 $ 2,145 Total 2 $ 2,145 The TDRs that subsequently defaulted described above did not increase the allowance for loan losses and resulted in no charge offs during the three -month periods ended March 31, 2016 . Credit Quality Indicators The Corporation establishes a risk rating at origination for all commercial loans. The main factors considered in assigning risk ratings include, but are not limited to: historic and future debt service coverage, collateral position, operating performance, liquidity, leverage, payment history, management ability, and the customer’s industry. Commercial relationship managers monitor all loans in their respective portfolios for any changes in the borrower’s ability to service its debt and affirm the risk ratings for the loans at least annually. For the retail loans, which include residential mortgages, indirect and direct consumer loans, home equity lines and loans, and credit cards, once a loan is properly approved and closed, the Corporation evaluates credit quality based upon loan repayment. The Corporation uses the risk rating system to identify criticized and classified loans. Commercial relationships within the criticized and classified risk ratings are analyzed quarterly. The Corporation uses the following definitions for criticized and classified loans (which are consistent with regulatory guidelines): Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capability of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Commercial loans not meeting the criteria above to be considered criticized or classified are considered to be pass rated loans. Loans listed as not rated are included in groups of homogeneous loans performing under terms of the loan notes. Based on the analyses performed as of March 31, 2017 and December 31, 2016 , the risk category of the recorded investment of loans by class of loans is as follows (in thousands): March 31, 2017 Not Rated Pass Special Mention Substandard Doubtful Loans acquired with deteriorated credit quality Total Commercial and agricultural: Commercial and industrial $ — $ 172,307 $ 4,203 $ 1,523 $ — $ — $ 178,033 Agricultural — 501 — — — 501 Commercial mortgages: Construction — 50,281 252 1,307 — — 51,840 Commercial mortgages — 525,745 8,283 15,584 1,439 1,275 552,326 Residential mortgages 194,873 — — 3,524 — 95 198,492 Consumer loans: Credit cards 1,409 — — — — — 1,409 Home equity lines and loans 97,644 — — 1,647 — — 99,291 Indirect consumer loans 137,838 — — 765 — — 138,603 Direct consumer loans 16,861 — — 31 — — 16,892 Total $ 448,625 $ 748,834 $ 12,738 $ 24,381 $ 1,439 $ 1,370 $ 1,237,387 December 31, 2016 Not Rated Pass Special Mention Substandard Doubtful Loans acquired with deteriorated credit quality Total Commercial and agricultural: Commercial and industrial $ — $ 172,873 $ 2,277 $ 1,516 $ — $ — $ 176,666 Agricultural — 361 — — — — 361 Commercial mortgages: Construction — 45,055 259 1,196 — — 46,510 Commercial mortgages — 496,723 8,574 15,566 1,460 1,323 523,646 Residential mortgages 194,669 — — 4,201 — 95 198,965 Consumer loans: Credit cards 1,476 — — — — — 1,476 Home equity lines and loans 97,183 — — 1,670 — — 98,853 Indirect consumer loans 139,339 — — 654 — — 139,993 Direct consumer loans 16,967 — — 45 — — 17,012 Total $ 449,634 $ 715,012 $ 11,110 $ 24,848 $ 1,460 $ 1,418 $ 1,203,482 The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential and consumer loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Consumer Loans Residential Mortgages Credit Card Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 194,968 $ 1,409 $ 97,644 $ 137,838 $ 16,861 Non-Performing 3,524 — 1,647 765 31 $ 198,492 $ 1,409 $ 99,291 $ 138,603 $ 16,892 December 31, 2016 Consumer Loans Residential Mortgages Credit Card Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 194,764 $ 1,476 $ 97,183 $ 139,339 $ 16,967 Non-Performing 4,201 — 1,670 654 45 $ 198,965 $ 1,476 $ 98,853 $ 139,993 $ 17,012 At the time of the merger with Fort Orange Financial Corp., the Corporation identified certain loans with evidence of deteriorated credit quality, and the probability that the Corporation would be unable to collect all contractually required payments from the borrower. These loans are classified as PCI loans. The Corporation adjusted its estimates of future expected losses, cash flows, and renewal assumptions on the PCI loans during the current year. These adjustments were made for changes in expected cash flows due to loans refinanced beyond original maturity dates, impairments recognized subsequent to the acquisition, advances made for taxes or insurance to protect collateral held and payments received in excess of amounts originally expected. The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from from January 1, 2017 to March 31, 2017 and January 1, 2016 to March 31, 2016 (in thousands): Three Months Ended March 31, 2017 Balance at December 31, 2016 Income Accretion All Other Adjustments Balance at March 31, 2017 Contractually required principal and interest $ 1,940 $ — $ (63 ) $ 1,877 Contractual cash flows not expected to be collected (nonaccretable discount) (352 ) — — (352 ) Cash flows expected to be collected 1,588 — (63 ) 1,525 Interest component of expected cash flows (accretable yield) (170 ) 15 — (155 ) Fair value of loans acquired with deteriorating credit quality $ 1,418 $ 15 $ (63 ) $ 1,370 Three Months Ended March 31, 2016 Balance at December 31, 2015 Income Accretion All Other Adjustments Balance at March 31, 2016 Contractually required principal and interest $ 2,912 $ — $ (54 ) $ 2,858 Contractual cash flows not expected to be collected (nonaccretable discount) (506 ) — 1 (505 ) Cash flows expected to be collected 2,406 — (53 ) 2,353 Interest component of expected cash flows (accretable yield) (311 ) 37 (1 ) (275 ) Fair value of loans acquired with deteriorating credit quality $ 2,095 $ 37 $ (54 ) $ 2,078 For those purchased credit impaired loans disclosed above, the Corporation did not increase the allowance for loan losses during the three months ended March 31, 2017 or 2016 . The Corporation did not reverse any allowance for loan losses during the three months ended March 31, 2017 or 2016 .

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Corporation used the following methods and significant assumptions to estimate fair value on a recurring basis: Investment Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3 inputs). Trading Assets: Securities that are held to fund a deferred compensation plan are recorded at fair value with changes in fair value included in earnings. The fair values of trading assets are determined by quoted market prices (Level 1 inputs). Derivatives : The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2 inputs). Derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices, and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counter-party's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of any applicable credit enhancements, such as collateral postings. Although the Corporation has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize credit default rate assumptions (Level 3 inputs). The fair values of credit risk participations are based on credit default rate assumptions (Level 3 inputs). Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement at March 31, 2017 Using Financial Assets: Fair Value Quoted Prices Significant Significant Unobservable Inputs Obligations of U.S. Government and U.S. Government sponsored enterprises $ 17,440 $ — $ 17,440 $ — Mortgage-backed securities, residential 239,678 — 239,678 — Obligations of states and political subdivisions 44,155 — 44,155 — Corporate bonds and notes 251 — — 251 SBA loan pools 550 — 550 — Corporate stocks 507 175 332 — Total available for sale securities $ 302,581 $ 175 $ 302,155 $ 251 Trading assets $ 826 $ 826 $ — $ — Derivative assets 747 — 747 — Financial Liabilities: Derivative liabilities $ 812 $ — $ 747 $ 65 Fair Value Measurement at December 31, 2016 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Obligations of U.S. Government and U.S. Government sponsored enterprises $ 17,455 $ — $ 17,455 $ — Mortgage-backed securities, residential 245,866 — 245,866 — Obligations of states and political subdivisions 38,740 — 38,740 — Corporate bonds and notes 250 — — 250 SBA loan pools 570 — 570 — Corporate stocks 521 170 351 — Total available for sale securities $ 303,402 $ 170 $ 302,982 $ 250 Trading assets $ 774 $ 774 $ — $ — Derivative assets 693 — 693 — Financial Liabilities: Derivative liabilities $ 761 $ — $ 693 $ 68 There were no transfers between Level 1 and Level 2 during the three -month periods ended March 31, 2017 . During the year ended December 31, 2016 , the Corporation transferred corporate stocks with a fair market value of $158 thousand at the date of transfer (and $103 thousand at December 31, 2016) from Level 2 to Level 1 due to the corporation's stock becoming publicly listed. The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended March 31, 2017 and March 31, 2016 (in thousands): Assets (Liabilities) Corporate Bonds and Notes Derivative Liabilities March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Balance of recurring Level 3 assets at January 1 $ 250 $ 248 $ (68 ) $ (48 ) Derivative instruments entered into — — — (2 ) Total gains or losses for the period: Included in earnings - other non-interest income — — 3 (34 ) Included in other comprehensive income 1 4 — — Transfers into Level 3 — — — — Balance of recurring Level 3 assets at March 31 $ 251 $ 252 $ (65 ) $ (84 ) The following table presents information related to Level 3 recurring fair value measurements at March 31, 2017 and December 31, 2016 (in thousands): Description Fair Value at Valuation Technique Unobservable Inputs Range Corporate bonds and notes $ 251 Discounted cash flow Credit spread 1.73% - 1.73% Derivative liabilities $ 65 Historical trend Credit default rate 4.92% - 4.92% Description Fair Value at Valuation Technique Unobservable Inputs Range Corporate bonds and notes $ 250 Discounted cash flow Credit spread 1.73% - 1.73% Derivative liabilities $ 68 Historical trend Credit default rate 4.92% - 4.92% The Corporation used the following methods and significant assumptions to estimate fair value on a non-recurring basis: Impaired Loans : At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value have been partially charged-off or receive specific allocations as part of the allowance for loan loss accounting. For collateral dependent loans, fair value is commonly based on real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, typically resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. OREO : Assets acquired through or instead of loan foreclosures are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Assets in which the Corporation has accepted a purchase offer are classified as Level 2. Appraisals for both collateral-dependent impaired loans and OREO are performed by certified general appraisers (commercial properties) or certified residential appraisers (residential properties) whose qualifications and licenses have been reviewed and verified by the Corporation. Once received, appraisals are reviewed for reasonableness of assumptions, approaches utilized, Uniform Standards of Professional Appraisal Practice and other regulatory compliance, as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are generally completed within the previous 12 month period prior to a property being placed into OREO. On impaired loans, appraisal values are adjusted based on the age of the appraisal, the position of the lien, the type of the property and its condition. Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Measurement at March 31, 2017 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired Loans: Commercial mortgages: Commercial mortgages $ 3,344 $ — $ — $ 3,344 Total impaired loans $ 3,344 $ — $ — $ 3,344 Other real estate owned: Residential mortgages $ 255 $ — $ — $ 255 Total other real estate owned, net $ 255 $ — $ — $ 255 Fair Value Measurement at December 31, 2016 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired Loans: Commercial mortgages: Commercial mortgages $ 2,631 $ — $ — $ 2,631 Consumer loans: Home equity lines and loans 219 — — 219 Total impaired loans $ 2,850 $ — $ — $ 2,850 Other real estate owned: Residential mortgages $ 344 $ — $ — $ 344 Total other real estate owned, net $ 344 $ — $ — $ 344 The following tables presents information related to Level 3 non-recurring fair value measurement at March 31, 2017 and December 31, 2016 (in thousands): Description Fair Value at March 31, 2017 Valuation Technique Unobservable Inputs Range Impaired loans: Commercial mortgages, other $ 745 Sales comparison Discount to appraised value 10.00% - 40.04% 2,599 Income approach Capitalization Rate 9.00% - 10.00% $ 3,344 OREO: Residential mortgages $ 255 Sales comparison Discount to appraised value 20.80% - 36.37% $ 255 Description Fair Value at December 31, 2016 Valuation Technique Unobservable Inputs Range Impaired loans: Commercial mortgages: Commercial mortgages, other $ 2,631 Income approach Capitalization Rate 9.00% - 10.00% Consumer loans: Home equity lines and loans 219 Sales comparison Discount to appraised value 22.98% - 22.98% $ 2,850 OREO: Residential mortgages $ 344 Sales comparison Discount to appraised value 20.80% - 48.17% $ 344 FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value of each class of financial instruments not already discussed: Cash and Due From Financial Institutions and Interest-Bearing Deposits in Other Financial Institutions For those short-term instruments that generally mature in 90 days or less, the carrying value approximates fair value of which non-interest-bearing deposits are classified as Level 1 and interest-bearing deposits with the FHLBNY and FRBNY are classified as Level 1. Securities Held to Maturity For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3 inputs). FHLBNY and FRBNY Stock It is not practicable to determine the fair value of FHLBNY and FRBNY stock due to restrictions placed on its transferability. Loans, Net For variable-rate loans that reprice frequently, fair values approximate carrying values. The fair values for other loans are estimated through discounted cash flow analysis using interest rates currently being offered for loans with similar terms and credit quality. Loans are classified as Level 3. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. Loans Held for Sale Certain mortgage loans are originated with the intent to sell. Loans held for sale are recorded at the lower of cost or market and are classified as Level 2. Deposits The fair values disclosed for demand deposits, savings accounts and money market accounts are, by definition, equal to the amounts payable on demand at the reporting date (i.e., their carrying values) and classified as Level 1. The fair value of certificates of deposits is estimated using a discounted cash flow approach that applies interest rates currently being offered on certificates to a schedule of the weighted-average expected monthly maturities and classified as Level 2. Securities Sold Under Agreements to Repurchase These instruments bear both variable and fixed rates of interest. Therefore, the carrying value approximates fair value for the variable rate instruments and the fair value of fixed rate instruments is based on discounted cash flows to maturity. These are classified as Level 2. FHLBNY Overnight Advances and FHLBNY Term Advances These instruments bear a stated rate of interest to maturity and, therefore, the fair value is based on discounted cash flows to maturity and classified as Level 2. Accrued Interest Receivable and Payable For these short-term instruments, the carrying value approximates fair value resulting in a classification of Level 1, Level 2 or Level 3 depending upon the classification of the asset/liability they are associated with. The carrying amounts and estimated fair values of other financial instruments, at March 31, 2017 and December 31, 2016 , are as follows (in thousands): March 31, 2017 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 26,275 $ 26,275 $ — $ — $ 26,275 Interest-bearing deposits in other financial institutions 99,410 99,410 — — 99,410 Trading assets 826 826 — — 826 Securities available for sale 302,581 175 302,155 251 302,581 Securities held to maturity 3,721 — 977 2,935 3,912 FHLBNY and FRBNY stock 3,597 — — — N/A Loans, net 1,219,291 — — 1,229,871 1,229,871 Loans held for sale 20 — 20 — 20 Accrued interest receivable 4,066 4 909 3,153 4,066 Derivative assets 747 — 747 — 747 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,403,637 $ 1,403,637 $ — $ — $ 1,403,637 Time deposits 140,614 — 140,934 — 140,934 Securities sold under agreements to repurchase 15,215 — 15,398 — 15,398 FHLBNY term advances 9,065 — 9,138 — 9,138 Accrued interest payable 172 23 149 — 172 Derivative liabilities 812 — 747 65 812 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. December 31, 2016 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 28,205 $ 28,205 $ — $ — $ 28,205 Interest-bearing deposits in other financial institutions 45,957 45,957 — — 45,957 Trading assets 774 774 — — 774 Securities available for sale 303,402 170 302,982 250 303,402 Securities held to maturity 4,705 — 981 3,931 4,912 FHLBNY and FRBNY stock 4,041 — — — N/A Loans, net 1,186,037 — — 1,205,814 1,205,814 Loans held for sale 412 — 412 — 412 Accrued interest receivable 4,000 9 784 3,207 4,000 Derivative assets 693 — 693 — 693 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,312,237 $ 1,312,237 $ — $ — $ 1,312,237 Time deposits 144,106 — 144,460 — 144,460 Securities sold under agreements to repurchase 27,606 — 27,880 — 27,880 FHLBNY term advances 9,093 — 9,189 — 9,189 Accrued interest payable 210 25 185 — 210 Derivative liabilities 761 — 693 68 761 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS The changes in goodwill included in the core banking segment during the periods ended March 31, 2017 and 2016 were as follows (in thousands): 2017 2016 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance March 31, $ 21,824 $ 21,824 Acquired intangible assets were as follows at March 31, 2017 and December 31, 2016 (in thousands): At March 31, 2017 At December 31, 2016 Balance Acquired Accumulated Amortization Balance Acquired Accumulated Amortization Core deposit intangibles $ 5,975 $ 4,827 $ 5,975 $ 4,689 Other customer relationship intangibles 5,633 4,062 5,633 3,974 Total $ 11,608 $ 8,889 $ 11,608 $ 8,663 Aggregate amortization expense was $0.2 million and $0.3 million for the three month periods ended March 31, 2017 and 2016 , respectively. The remaining estimated aggregate amortization expense at March 31, 2017 is listed below (in thousands): Year Estimated Expense 2017 $ 634 2018 734 2019 609 2020 484 2021 258 Total $ 2,719

SECURITIES SOLD UNDER AGREEMENT

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	3 Months Ended
	Mar. 31, 2017
Disclosure of Repurchase Agreements [Abstract]
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE	SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE A summary of securities sold under agreements to repurchase as of March 31, 2017 and December 31, 2016 is as follows (in thousands): March 31, 2017 Overnight and Continuous Up to 1 Year 1 - 3 Years 3+ Years Total Mortgage-backed securities, residential $ 8,097 $ — $ 13,690 $ — $ 21,787 Excess collateral held (2,882 ) — (3,690 ) — (6,572 ) Gross amount of recognized liabilities for repurchase agreements $ 5,215 $ — $ 10,000 $ — $ 15,215 December 31, 2016 Overnight and Continuous Up to 1 Year 1 - 3 Years 3+ Years Total Obligations of U.S. Government and U.S. Government sponsored enterprises $ — $ 1,276 $ — $ — $ 1,276 Mortgage-backed securities, residential 13,092 9,664 14,244 — 37,000 Total 13,092 10,940 14,244 — 38,276 Excess collateral held (5,486 ) (940 ) (4,244 ) — (10,670 ) Gross amount of recognized liabilities for repurchase agreements $ 7,606 $ 10,000 $ 10,000 $ — $ 27,606 The Corporation enters into sales of securities under agreements to repurchase and the amounts received under these agreements represent borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities which fluctuate due to market conditions, however, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by utilizing highly marketable and easily priced securities, monitoring these securities for significant changes in market valuation routinely, and maintaining an unpledged securities portfolio believed to be sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss represents the net unrealized holding gains or losses on securities available for sale and the funded status of the Corporation's defined benefit pension plan and other benefit plans, as of the consolidated balance sheet dates, net of the related tax effect. The following is a summary of the changes in accumulated other comprehensive loss by component, net of tax, for the periods indicated (in thousands): Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2017 $ (4,356 ) $ (6,398 ) $ (10,754 ) Other comprehensive income before reclassification 1,977 — 1,977 Amounts reclassified from accumulated other comprehensive income — 21 21 Net current period other comprehensive income 1,977 21 1,998 Balance at March 31, 2017 $ (2,379 ) $ (6,377 ) $ (8,756 ) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2016 $ 210 $ (11,152 ) $ (10,942 ) Other comprehensive loss before reclassification 1,936 — 1,936 Amounts reclassified from accumulated other comprehensive income (565 ) 233 (332 ) Net current period other comprehensive income 1,371 233 1,604 Balance at March 31, 2016 $ 1,581 $ (10,919 ) $ (9,338 ) The following is the reclassification out of accumulated other comprehensive income for the periods indicated (in thousands): Details about Accumulated Other Comprehensive Income Components Three Months Ended Affected Line Item 2017 2016 Unrealized gains and losses on securities available for sale: Realized gains on securities available for sale $ — $ (908 ) Net gains (losses) on securities transactions Tax effect — 343 Income tax expense Net of tax — (565 ) Amortization of defined pension plan and other benefit plan items: Prior service costs (a) (55 ) (22 ) Pension and other employee benefits Actuarial losses (a) 88 396 Pension and other employee benefits Tax effect (12 ) (141 ) Income tax expense Net of tax 21 233 Total reclassification for the period, net of tax $ 21 $ (332 ) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 10 for additional information).

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Corporation is a party to certain financial instruments with off-balance sheet risk such as commitments under standby letters of credit, unused portions of lines of credit, overdraft protection and commitments to fund new loans. In accordance with GAAP, these financial instruments are not recorded in the financial statements. The Corporation's policy is to record such instruments when funded. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are generally used by the Corporation to manage clients' requests for funding and other client needs. The following table lists the contractual amounts of financial instruments with off-balance sheet risk at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 35,706 $ 29,629 $ 38,246 $ 33,189 Unused lines of credit 913 209,879 610 208,124 Standby letters of credit — 14,156 — 14,241 On March 23, 2016, the Bank received a summons and complaint for an action brought in the State of New York Supreme Court for the County of Tompkins, regarding its lease of 202 East State Street, Ithaca, NY. The owner of the leased premises has alleged that the Bank has breached its contract and is requesting a judgment declaring that the term of the lease runs through December 31, 2025 or a judgment in his favor in the amount of $4.0 million . On July 25, 2016, the Corporation received Notice of Entry of the decision and order of the New York Supreme Court for the County of Tompkins, involving claims by the owner of the leased premises at 202 East State Street, Ithaca, New York against the Bank. The Court granted, in part, partial summary judgment in favor of the plaintiff - on the issue of liability only- for anticipatory breach and breach of contract. The fraud claims were dismissed, and summary judgment was denied on the plaintiff’s trespass claims. The Court set the matter down for an inquest on damages at a later date, with the original claim by the plaintiff seeking $4.0 million in damages. The Corporation has filed an appeal to the court determination which has been perfected in the Appellate Division, Third Department of State Supreme Court. The briefing process has not been completed, although the Record on Appeal and the Corporation's brief have both been filed with the Appellate Division. The Corporation established a legal reserve of $1.2 million in connection with this case during the second quarter of 2016. which the Corporation has deemed sufficient as of March 31, 2017. In the normal course of business, there are various outstanding claims and legal proceedings involving the Corporation or its subsidiaries. Except for the above matter, we believe that we are not a party to any pending legal, arbitration, or regulatory proceedings that could have a material adverse impact on our financial results or liquidity.

COMPONENTS OF QUARTERLY AND YEA

COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS	COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS The components of net periodic expense for the Corporation’s pension and other benefit plans for the periods indicated are as follows (in thousands): Three Months Ended 2017 2016 Qualified Pension Plan Service cost, benefits earned during the period $ — $ 296 Interest cost on projected benefit obligation 403 470 Expected return on plan assets (785 ) (755 ) Amortization of unrecognized transition obligation — — Amortization of unrecognized prior service cost — 2 Amortization of unrecognized net loss 58 384 Net periodic pension cost $ (324 ) $ 397 Supplemental Pension Plan Service cost, benefits earned during the period $ — $ 11 Interest cost on projected benefit obligation 12 13 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 1 6 Net periodic supplemental pension cost $ 13 $ 30 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ 12 Interest cost on projected benefit obligation 4 17 Expected return on plan assets — — Amortization of unrecognized prior service cost (55 ) (24 ) Amortization of unrecognized net loss 29 6 Net periodic postretirement, medical and life cost $ (22 ) $ 11

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
SEGMENT REPORTING	SEGMENT REPORTING The Corporation manages its operations through two primary business segments: core banking and WMG. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets and to invest in securities. The WMG services segment provides revenues by providing trust and investment advisory services to clients. Accounting policies for the segments are the same as those described in Note 1 of the Corporation’s 2016 Annual Report on Form 10-K, which was filed with the SEC on March 8, 2017. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. CFS amounts are the primary differences between segment amounts and consolidated totals, and are reflected in the Holding Company, CFS, and CRM column below, along with amounts to eliminate transactions between those segments (in thousands). CRM was formed during the second quarter of 2016, therefore, is not included within prior year comparative information. Three months ended March 31, 2017 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 14,311 $ — $ 3 $ 14,314 Interest expense 820 — — 820 Net interest income 13,491 — 3 13,494 Provision for loan losses 1,040 — — 1,040 Net interest income after provision for loan losses 12,451 — 3 12,454 Other non-interest income 2,605 2,109 133 4,847 Other non-interest expenses 11,444 1,305 296 13,045 Income (loss) before income tax expense (benefit) 3,612 804 (160 ) 4,256 Income tax expense (benefit) 1,048 305 (76 ) 1,277 Segment net income (loss) $ 2,564 $ 499 $ (84 ) $ 2,979 Segment assets $ 1,729,057 $ 4,270 $ 2,773 $ 1,736,100 Three months ended March 31, 2016 Core Banking WMG Holding Company And CFS Consolidated Totals Interest and dividend income $ 13,949 $ — $ — $ 13,949 Interest expense 924 — — 924 Net interest income 13,025 — — 13,025 Provision for loan losses 595 — — 595 Net interest income after provision for loan losses 12,430 — — 12,430 Other non-interest income 3,416 2,012 173 5,601 Other non-interest expenses 12,252 1,389 367 14,008 Income (loss) before income tax expense (benefit) 3,594 623 (194 ) 4,023 Income tax expense (benefit) 1,170 235 (89 ) 1,316 Segment net income $ 2,424 $ 388 $ (105 ) $ 2,707 Segment assets $ 1,637,242 $ 4,668 $ 1,316 $ 1,643,226

STOCK COMPENSATION

STOCK COMPENSATION	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK COMPENSATION	STOCK COMPENSATION Board of Director’s Stock Compensation Members of the Board of Directors receive common shares of the Corporation equal in value to the amount of fees individually earned during the previous year for service as a director. The common shares are distributed to the Corporation's individual board members from treasury shares of the Corporation on or about January 15 following the calendar year of service. Additionally, the Chief Executive Officer of the Corporation, who does not receive cash compensation as a member of the Board of Directors, is awarded common shares equal in value to the average of those awarded to board members not employed by the Corporation who have served for 12 months during the prior year. During January 2017 and 2016 , 7,880 and 9,532 shares, respectively, were re-issued from treasury to fund the stock component of directors' compensation. An expense of $79 thousand and $67 thousand related to this compensation was recognized during the three-month periods ended March 31, 2017 and 2016 , respectively. This expense is accrued as shares are earned. Restricted Stock Plan Pursuant to the Corporation’s Restricted Stock Plan, the Corporation may make discretionary grants of restricted stock to officers other than the Corporation's Chief Executive Officer. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date. A summary of restricted stock activity for the three month period ended March 31, 2017 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2017 23,794 $ 29.90 Granted — — Vested (415 ) 26.59 Forfeited or cancelled (1,139 ) 29.97 Nonvested at March 31, 2017 22,240 $ 29.96 As of March 31, 2017 , there was $607 thousand of total unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 3.58 years. The total fair value of shares vested was $16 thousand and $11 thousand for the three month periods ended March 31, 2017 and 2016 , respectively.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Organization	Organization The Corporation, through its wholly-owned subsidiaries, the Bank and CFS, provides a wide range of banking, financing, fiduciary and other financial services to its clients. The Corporation and the Bank are subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. CRM, a wholly-owned subsidiary of the Corporation which was formed and began operations on May 31, 2016, is a Nevada-based captive insurance company which insures against certain risks unique to the operations of the Corporation and its subsidiaries and for which insurance may not be currently available or economically feasible in today's insurance marketplace. CRM pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. CRM is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Exchange Act. These financial statements include the accounts of the Corporation and its subsidiaries, and all significant intercompany balances and transactions are eliminated in consolidation. Amounts in the prior periods' consolidated financial statements are reclassified whenever necessary to conform to the current period's presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, an amendment to Revenue from Contracts with Customers (Topic 606) . The objective of this amendment is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are in the scope of other standards. In August 2015, the FASB issued ASU 2015-14 to defer for one year the effective date of the new revenue standard. The requirements are effective for annual periods and interim periods within fiscal years beginning after December 15, 2017. During 2016, the FASB issued further implementation guidance regarding revenue recognition. This additional guidance included clarification on certain principal versus agent considerations within the implementation of the guidance as well as clarification related to identifying performance obligations and licensing, assessing collectability, presenting sales taxes, measuring noncash consideration, and certain transition matters. The Corporation intends to adopt the new revenue guidance as of January 1, 2018 and does not expect a significant change upon adoption of the standard, as the new standard will not materially change the way the Corporation currently records revenue for its WMG and fee income from mortgage servicing fees, financial guarantees, and deposit related fees. In January 2016, the FASB issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) . The objectives of the ASU are to (1) require equity investments to be measured at fair value, with changes in fair value recognized in net income, (2) simplify the impairment assessment of equity investments without readily determinable fair values, (3) eliminate the requirement to disclose methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet, (4) require the use of the exit price notion when measuring the fair value of financial instruments, and (5) clarify the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Corporation intends to adopt the new guidance as of January 1, 2018 and believes the ASU will not have a material impact on its consolidated financial statements, as the Corporation's equity investment portfolio is less than $1.0 million as of March 31, 2017. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, though early adoption is permitted. The Corporation intends to adopt the new lease guidance as of January 1, 2019 and is currently evaluating the impact that adoption of these updates will have on its consolidated financial statements. Currently, the Corporation believes the implementation of this ASU will create a right of use asset of less than $5.0 million for the Corporation's 13 leased facilities and a related capital obligation of the same amount as of January 1, 2019. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The objectives of the ASU are to simplify accounting for a stock payment's tax consequences and amend how excess tax benefits and a business's payments to cover the tax bills for the shares' recipients should be classified. The amendments allow companies to estimate the number of stock awards they expect to vest, and they revise the withholding requirements for classifying stock awards as equity. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2016, though early adoption is permitted. The adoption of ASU 2016-09 did not have a significant impact on the Corporation's consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The objective of the ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2019, though entities may adopt the amendments earlier for fiscal year beginning after December 15, 2018. The Corporation is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. The Corporation anticipates that the adoption of the CECL model will result in an increase to the Corporation's allowance for loan losses. The Corporation has established a committee to oversee the implementation of CECL. This committee is currently assessing the data and system requirements necessary for adoption. The Corporation plans to run its current incurred loss model and a CECL model concurrently for 12 months prior to the adoption of this guidance on January 1, 2020. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The objective of the ASU is to reduce the existing diversity in practice relating to eight specific cash flow issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows and application of the predominance principal. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, though early adoption is permitted. The adoption of the ASU is not expected to have a significant impact on the Corporation's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The objective of the ASU is to simplify the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Additionally, the ASU removes the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. The adoption of the ASU is not expected to have a significant impact on the Corporation's consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Cost and Net Periodic Postretirement Benefit Cost . The objective of the ASU is to improve guidance related to the presentation of defined benefit costs in the income statement. Specifically, the ASU requires that an employer report the service cost component in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Additionally, the ASU allows only the service cost component to be eligible for capitalization, when applicable. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of the ASU is not expected to have a significant impact on the Corporation's consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The objective of the ASU is to align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. The amendment requires that the premium be amortized to the earlies call date, but does not require an accounting change for securities held at a discount, instead, the discount continues to be amortized to maturity. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. The adoption of the ASU is not expected to have a significant impact on the Corporation's consolidated financial statements.
Earnings Per Common Share	Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Issuable shares, including those related to directors’ restricted stock units and directors’ stock compensation, are considered outstanding and are included in the computation of basic earnings per share. All outstanding unvested share based payment awards that contain rights to non-forfeitable dividends are considered participating securities for this calculation. Restricted stock awards are grants of participating securities and are considered outstanding at grant date. Earnings per share information is adjusted to present comparative results for stock splits and stock dividends that occur
Fair Value Measurement	Fair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Corporation used the following methods and significant assumptions to estimate fair value on a recurring basis: Investment Securities: The fair values of securities available for sale are usually determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or matrix pricing, which is a mathematical technique widely used to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3 inputs). Trading Assets: Securities that are held to fund a deferred compensation plan are recorded at fair value with changes in fair value included in earnings. The fair values of trading assets are determined by quoted market prices (Level 1 inputs). Derivatives : The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2 inputs). Derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices, and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The Corporation also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counter-party's nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation has considered the impact of any applicable credit enhancements, such as collateral postings. Although the Corporation has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize credit default rate assumptions (Level 3 inputs). The fair values of credit risk participations are based on credit default rate assumptions (Level 3 inputs).

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Amortized cost and estimated fair value of securities available for sale	Amortized cost and estimated fair value of securities available for sale are as follows (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Obligations of U.S. Government and U.S. Government sponsored enterprises $ 17,295 $ 145 $ — $ 17,440 Mortgage-backed securities, residential 244,049 319 4,690 239,678 Obligations of states and political subdivisions 44,007 288 140 44,155 Corporate bonds and notes 248 3 — 251 SBA loan pools 550 1 1 550 Corporate stocks 265 242 — 507 Total $ 306,414 $ 998 $ 4,831 $ 302,581 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Obligations of U.S. Government and U.S. Government sponsored enterprises $ 17,300 $ 155 $ — $ 17,455 Mortgage-backed securities, residential 253,156 202 7,492 245,866 Obligations of states and political subdivisions 38,843 209 312 38,740 Corporate bonds and notes 249 1 — 250 SBA loan pools 568 3 1 570 Corporate stocks 285 236 — 521 Total $ 310,401 $ 806 $ 7,805 $ 303,402
Amortized cost and estimated fair value of securities held to maturity	Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Obligations of states and political subdivisions $ 2,741 $ 194 $ — $ 2,935 Time deposits with other financial institutions 980 — 3 977 Total $ 3,721 $ 194 $ 3 $ 3,912 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Obligations of states and political subdivisions $ 3,725 $ 206 $ — $ 3,931 Time deposits with other financial institutions 980 1 — 981 Total $ 4,705 $ 207 $ — $ 4,912
Amortized cost and estimated fair value of debt securities by contractual maturity	The amortized cost and estimated fair value of debt securities are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands): March 31, 2017 Available for Sale Held to Maturity Amortized Fair Amortized Fair Within one year $ 8,197 $ 8,224 $ 866 $ 873 After one, but within five years 33,091 33,411 2,583 2,729 After five, but within ten years 17,184 17,168 272 310 After ten years 3,078 3,043 — — 61,550 61,846 3,721 3,912 Mortgage-backed securities, residential 244,049 239,678 — — SBA loan pools 550 550 — — Total $ 306,149 $ 302,074 $ 3,721 $ 3,912
Proceeds from sales and calls of securities resulting in gains or losses	The proceeds from sales and calls of securities resulting in gains or losses for the three months ended March 31, 2017 and 2016 are listed below (in thousands): 2017 2016 Proceeds $ — $ 15,422 Gross gains — 908 Gross losses — — Tax expense — 343
Investment securities available for sale in an unrealized loss position	The following tables summarize the investment securities available for sale with unrealized losses at March 31, 2017 and December 31, 2016 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands): Less than 12 months 12 months or longer Total March 31, 2017 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities, residential $ 220,708 $ 4,690 $ — $ — $ 220,708 $ 4,690 Obligations of states and political subdivisions 12,815 140 — — 12,815 140 SBA loan pools — — 219 1 219 1 Total temporarily impaired securities $ 233,523 $ 4,830 $ 219 $ 1 $ 233,742 $ 4,831 Less than 12 months 12 months or longer Total December 31, 2016 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Mortgage-backed securities, residential $ 233,843 $ 7,492 $ — $ — $ 233,843 $ 7,492 Obligations of states and political subdivisions 25,724 312 — — 25,724 312 SBA loan pools — — 225 1 225 1 Total temporarily impaired securities $ 259,567 $ 7,804 $ 225 $ 1 $ 259,792 $ 7,805

LOANS AND ALLOWANCE FOR LOAN 23

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2017
Loans and Leases Receivable Disclosure [Abstract]
Composition of the loan portfolio by type	The composition of the loan portfolio, net of deferred origination fees and costs, is summarized as follows (in thousands): March 31, 2017 December 31, 2016 Commercial and agricultural: Commercial and industrial $ 177,575 $ 176,201 Agricultural 500 360 Commercial mortgages: Construction 51,706 46,387 Commercial mortgages, other 550,906 522,269 Residential mortgages 198,020 198,493 Consumer loans: Credit cards 1,409 1,476 Home equity lines and loans 99,032 98,590 Indirect consumer loans 138,273 139,572 Direct consumer loans 16,830 16,942 Total loans, net of deferred origination fees and costs $ 1,234,251 $ 1,200,290 Interest receivable on loans 3,136 3,192 Total recorded investment in loans $ 1,237,387 $ 1,203,482
Allowance for loan losses by portfolio segment	The following tables present the activity in the allowance for loan losses by portfolio segment for the three -month periods ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, 2017 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 1,589 $ 7,270 $ 1,523 $ 3,871 $ 14,253 Charge-offs (5 ) — (12 ) (427 ) (444 ) Recoveries 24 1 17 69 111 Net recoveries (charge-offs) 19 1 5 (358 ) (333 ) Provision 42 478 (16 ) 536 1,040 Ending balance $ 1,650 $ 7,749 $ 1,512 $ 4,049 $ 14,960 Three Months Ended March 31, 2016 Allowance for loan losses Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Beginning balance $ 1,831 $ 7,112 $ 1,464 $ 3,853 $ 14,260 Charge-offs (8 ) — — (443 ) (451 ) Recoveries 32 7 — 84 123 Net recoveries (charge-offs) 24 7 — (359 ) (328 ) Provision (60 ) 413 18 224 595 Ending balance $ 1,795 $ 7,532 $ 1,482 $ 3,718 $ 14,527
Allowance for loan losses and the recorded investment in loans based on impairment method	The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 845 $ — $ 153 $ 998 Collectively evaluated for impairment 1,650 6,845 1,487 3,896 13,878 Loans acquired with deteriorated credit quality — 59 25 — 84 Total ending allowance balance $ 1,650 $ 7,749 $ 1,512 $ 4,049 $ 14,960 December 31, 2016 Allowance for loan losses: Commercial and Agricultural Commercial Mortgages Residential Mortgages Consumer Loans Total Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 735 $ — $ 141 $ 876 Collectively evaluated for impairment 1,589 6,476 1,498 3,730 13,293 Loans acquired with deteriorated credit quality — 59 25 — 84 Total ending allowance balance $ 1,589 $ 7,270 $ 1,523 $ 3,871 $ 14,253 March 31, 2017 Loans: Commercial Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 649 $ 11,969 $ 390 $ 432 $ 13,440 Loans collectively evaluated for impairment 177,885 590,922 198,007 255,763 1,222,577 Loans acquired with deteriorated credit quality — 1,275 95 — 1,370 Total ending loans balance $ 178,534 $ 604,166 $ 198,492 $ 256,195 $ 1,237,387 December 31, 2016 Loans: Commercial Commercial Mortgages Residential Mortgages Consumer Loans Total Loans individually evaluated for impairment $ 693 $ 10,382 $ 396 $ 455 $ 11,926 Loans collectively evaluated for impairment 176,334 558,451 198,474 256,879 1,190,138 Loans acquired with deteriorated credit quality — 1,323 95 — 1,418 Total ending loans balance $ 177,027 $ 570,156 $ 198,965 $ 257,334 $ 1,203,482
Summary of impaired financing receivables	The following table presents loans individually evaluated for impairment recognized by class of loans as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 With no related allowance recorded: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Commercial and agricultural: Commercial and industrial $ 646 $ 649 $ — $ 690 $ 693 $ — Commercial mortgages: Construction 1,558 1,559 — 277 278 — Commercial mortgages, other 6,133 6,144 — 8,792 7,857 — Residential mortgages 389 390 — 395 396 — Consumer loans: Home equity lines and loans 72 72 — 93 95 — With an allowance recorded: Commercial mortgages: Commercial mortgages, other 5,206 4,266 845 2,245 2,247 735 Consumer loans: Home equity lines and loans 360 360 153 360 360 141 Total $ 14,364 $ 13,440 $ 998 $ 12,852 $ 11,926 $ 876 The following table presents the average recorded investment and interest income of loans individually evaluated for impairment recognized by class of loans as of the three -month periods ended March 31, 2017 and 2016 (in thousands): Three Months Ended Three Months Ended With no related allowance recorded: Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial and agricultural: Commercial and industrial $ 671 $ 9 $ 1,266 $ 13 Commercial mortgages: Construction 919 3 348 4 Commercial mortgages, other 7,000 59 7,395 68 Residential mortgages 393 2 273 — Consumer loans: Home equity lines & loans 84 1 107 1 With an allowance recorded: Commercial and agricultural: Commercial and industrial — — 9 — Commercial mortgages: Commercial mortgages, other 3,257 1 4,845 1 Consumer loans: Home equity lines and loans 360 — 364 — Total $ 12,684 $ 75 $ 14,607 $ 87 (1) Cash basis interest income approximates interest income recognized. The following tables present the recorded investment in non-accrual and loans past due 90 days or more and still accruing by class of loans as of March 31, 2017 and December 31, 2016 (in thousands): Non-accrual Loans Past Due 90 Days or More and Still Accruing March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 Commercial and agricultural: Commercial and industrial $ — $ — $ 9 $ 2 Commercial mortgages: Construction 1,308 19 — — Commercial mortgages, other 5,639 5,454 — — Residential mortgages 3,524 4,201 — — Consumer loans: Credit cards — — 18 11 Home equity lines and loans 1,647 1,670 — — Indirect consumer loans 765 654 — — Direct consumer loans 31 45 — — Total $ 12,914 $ 12,043 $ 27 $ 13
Recorded investment in past due and non-accrual status by class of loans	The following tables present the aging of the recorded investment in loans as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Acquired with Deteriorated Credit Quality Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 155 $ 1 $ 9 $ 165 $ — $ 177,868 $ 178,033 Agricultural — — — — — 501 501 Commercial mortgages: Construction — — 1,289 1,289 — 50,551 51,840 Commercial mortgages, other 941 3,361 2,522 6,824 1,275 544,227 552,326 Residential mortgages 2,276 254 1,758 4,288 95 194,109 198,492 Consumer loans: Credit cards 17 13 18 48 — 1,361 1,409 Home equity lines and loans 289 209 1,102 1,600 — 97,691 99,291 Indirect consumer loans 1,538 313 488 2,339 — 136,264 138,603 Direct consumer loans 68 2 8 78 — 16,814 16,892 Total $ 5,284 $ 4,153 $ 7,194 $ 16,631 $ 1,370 $ 1,219,386 $ 1,237,387 December 31, 2016 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Loans Acquired with Deteriorated Credit Quality Loans Not Past Due Total Commercial and agricultural: Commercial and industrial $ 160 $ 7 $ 2 $ 169 $ — $ 176,497 $ 176,666 Agricultural — — — — — 361 361 Commercial mortgages: Construction — 1,177 — 1,177 — 45,333 46,510 Commercial mortgages, other 652 4,460 2,412 7,524 1,323 514,799 523,646 Residential mortgages 2,100 436 2,383 4,919 95 193,951 198,965 Consumer loans: Credit cards 3 9 11 23 — 1,453 1,476 Home equity lines and loans 227 — 1,149 1,376 — 97,477 98,853 Indirect consumer loans 1,773 287 542 2,602 — 137,391 139,993 Direct consumer loans 54 7 22 83 — 16,929 17,012 Total $ 4,969 $ 6,383 $ 6,521 $ 17,873 $ 1,418 $ 1,184,191 $ 1,203,482
Loans by class modified as troubled debt restructurings	The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2017 and March 31, 2016 (dollars in thousands): March 31, 2017 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Commercial mortgages: Commercial mortgages, other 1 $ 166 $ 166 Total 1 $ 166 $ 166 March 31, 2016 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: Residential mortgages 1 $ 121 $ 125 Total 1 $ 121 $ 125 The TDRs described above did no t increase the allowance for loan losses and resulted in no charge-offs during the three-month periods ended March 31, 2017 and March 31, 2016 . The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the three months ended March 31, 2016 : Number of Loans Recorded Investment Commercial mortgages: Commercial mortgages, other 2 $ 2,145 Total 2 $ 2,145
Risk category of the recorded investment of loans by class of loans	Based on the analyses performed as of March 31, 2017 and December 31, 2016 , the risk category of the recorded investment of loans by class of loans is as follows (in thousands): March 31, 2017 Not Rated Pass Special Mention Substandard Doubtful Loans acquired with deteriorated credit quality Total Commercial and agricultural: Commercial and industrial $ — $ 172,307 $ 4,203 $ 1,523 $ — $ — $ 178,033 Agricultural — 501 — — — 501 Commercial mortgages: Construction — 50,281 252 1,307 — — 51,840 Commercial mortgages — 525,745 8,283 15,584 1,439 1,275 552,326 Residential mortgages 194,873 — — 3,524 — 95 198,492 Consumer loans: Credit cards 1,409 — — — — — 1,409 Home equity lines and loans 97,644 — — 1,647 — — 99,291 Indirect consumer loans 137,838 — — 765 — — 138,603 Direct consumer loans 16,861 — — 31 — — 16,892 Total $ 448,625 $ 748,834 $ 12,738 $ 24,381 $ 1,439 $ 1,370 $ 1,237,387 December 31, 2016 Not Rated Pass Special Mention Substandard Doubtful Loans acquired with deteriorated credit quality Total Commercial and agricultural: Commercial and industrial $ — $ 172,873 $ 2,277 $ 1,516 $ — $ — $ 176,666 Agricultural — 361 — — — — 361 Commercial mortgages: Construction — 45,055 259 1,196 — — 46,510 Commercial mortgages — 496,723 8,574 15,566 1,460 1,323 523,646 Residential mortgages 194,669 — — 4,201 — 95 198,965 Consumer loans: Credit cards 1,476 — — — — — 1,476 Home equity lines and loans 97,183 — — 1,670 — — 98,853 Indirect consumer loans 139,339 — — 654 — — 139,993 Direct consumer loans 16,967 — — 45 — — 17,012 Total $ 449,634 $ 715,012 $ 11,110 $ 24,848 $ 1,460 $ 1,418 $ 1,203,482
Recorded investment in residential and consumer loans based on payment activity	The following table presents the recorded investment in residential and consumer loans based on payment activity as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Consumer Loans Residential Mortgages Credit Card Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 194,968 $ 1,409 $ 97,644 $ 137,838 $ 16,861 Non-Performing 3,524 — 1,647 765 31 $ 198,492 $ 1,409 $ 99,291 $ 138,603 $ 16,892 December 31, 2016 Consumer Loans Residential Mortgages Credit Card Home Equity Lines and Loans Indirect Consumer Loans Other Direct Consumer Loans Performing $ 194,764 $ 1,476 $ 97,183 $ 139,339 $ 16,967 Non-Performing 4,201 — 1,670 654 45 $ 198,965 $ 1,476 $ 98,853 $ 139,993 $ 17,012
Summary of changes in contractually required principal and interest on loans acquired	The table below summarizes the changes in total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the PCI loans from from January 1, 2017 to March 31, 2017 and January 1, 2016 to March 31, 2016 (in thousands): Three Months Ended March 31, 2017 Balance at December 31, 2016 Income Accretion All Other Adjustments Balance at March 31, 2017 Contractually required principal and interest $ 1,940 $ — $ (63 ) $ 1,877 Contractual cash flows not expected to be collected (nonaccretable discount) (352 ) — — (352 ) Cash flows expected to be collected 1,588 — (63 ) 1,525 Interest component of expected cash flows (accretable yield) (170 ) 15 — (155 ) Fair value of loans acquired with deteriorating credit quality $ 1,418 $ 15 $ (63 ) $ 1,370 Three Months Ended March 31, 2016 Balance at December 31, 2015 Income Accretion All Other Adjustments Balance at March 31, 2016 Contractually required principal and interest $ 2,912 $ — $ (54 ) $ 2,858 Contractual cash flows not expected to be collected (nonaccretable discount) (506 ) — 1 (505 ) Cash flows expected to be collected 2,406 — (53 ) 2,353 Interest component of expected cash flows (accretable yield) (311 ) 37 (1 ) (275 ) Fair value of loans acquired with deteriorating credit quality $ 2,095 $ 37 $ (54 ) $ 2,078

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Summary of assets and liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurement at March 31, 2017 Using Financial Assets: Fair Value Quoted Prices Significant Significant Unobservable Inputs Obligations of U.S. Government and U.S. Government sponsored enterprises $ 17,440 $ — $ 17,440 $ — Mortgage-backed securities, residential 239,678 — 239,678 — Obligations of states and political subdivisions 44,155 — 44,155 — Corporate bonds and notes 251 — — 251 SBA loan pools 550 — 550 — Corporate stocks 507 175 332 — Total available for sale securities $ 302,581 $ 175 $ 302,155 $ 251 Trading assets $ 826 $ 826 $ — $ — Derivative assets 747 — 747 — Financial Liabilities: Derivative liabilities $ 812 $ — $ 747 $ 65 Fair Value Measurement at December 31, 2016 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Obligations of U.S. Government and U.S. Government sponsored enterprises $ 17,455 $ — $ 17,455 $ — Mortgage-backed securities, residential 245,866 — 245,866 — Obligations of states and political subdivisions 38,740 — 38,740 — Corporate bonds and notes 250 — — 250 SBA loan pools 570 — 570 — Corporate stocks 521 170 351 — Total available for sale securities $ 303,402 $ 170 $ 302,982 $ 250 Trading assets $ 774 $ 774 $ — $ — Derivative assets 693 — 693 — Financial Liabilities: Derivative liabilities $ 761 $ — $ 693 $ 68
Reconciliation of all assets measured at fair value	The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended March 31, 2017 and March 31, 2016 (in thousands): Assets (Liabilities) Corporate Bonds and Notes Derivative Liabilities March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Balance of recurring Level 3 assets at January 1 $ 250 $ 248 $ (68 ) $ (48 ) Derivative instruments entered into — — — (2 ) Total gains or losses for the period: Included in earnings - other non-interest income — — 3 (34 ) Included in other comprehensive income 1 4 — — Transfers into Level 3 — — — — Balance of recurring Level 3 assets at March 31 $ 251 $ 252 $ (65 ) $ (84 )
Reconciliation of liabilities measured at fair value	The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended March 31, 2017 and March 31, 2016 (in thousands): Assets (Liabilities) Corporate Bonds and Notes Derivative Liabilities March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016 Balance of recurring Level 3 assets at January 1 $ 250 $ 248 $ (68 ) $ (48 ) Derivative instruments entered into — — — (2 ) Total gains or losses for the period: Included in earnings - other non-interest income — — 3 (34 ) Included in other comprehensive income 1 4 — — Transfers into Level 3 — — — — Balance of recurring Level 3 assets at March 31 $ 251 $ 252 $ (65 ) $ (84 )
Summary of assets and liabilities measured at fair value on a non-recurring basis	Assets and liabilities measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Measurement at March 31, 2017 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired Loans: Commercial mortgages: Commercial mortgages $ 3,344 $ — $ — $ 3,344 Total impaired loans $ 3,344 $ — $ — $ 3,344 Other real estate owned: Residential mortgages $ 255 $ — $ — $ 255 Total other real estate owned, net $ 255 $ — $ — $ 255 Fair Value Measurement at December 31, 2016 Using Financial Assets: Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired Loans: Commercial mortgages: Commercial mortgages $ 2,631 $ — $ — $ 2,631 Consumer loans: Home equity lines and loans 219 — — 219 Total impaired loans $ 2,850 $ — $ — $ 2,850 Other real estate owned: Residential mortgages $ 344 $ — $ — $ 344 Total other real estate owned, net $ 344 $ — $ — $ 344
Nonrecurring fair value measurement, valuation techniques	The following tables presents information related to Level 3 non-recurring fair value measurement at March 31, 2017 and December 31, 2016 (in thousands): Description Fair Value at March 31, 2017 Valuation Technique Unobservable Inputs Range Impaired loans: Commercial mortgages, other $ 745 Sales comparison Discount to appraised value 10.00% - 40.04% 2,599 Income approach Capitalization Rate 9.00% - 10.00% $ 3,344 OREO: Residential mortgages $ 255 Sales comparison Discount to appraised value 20.80% - 36.37% $ 255 Description Fair Value at December 31, 2016 Valuation Technique Unobservable Inputs Range Impaired loans: Commercial mortgages: Commercial mortgages, other $ 2,631 Income approach Capitalization Rate 9.00% - 10.00% Consumer loans: Home equity lines and loans 219 Sales comparison Discount to appraised value 22.98% - 22.98% $ 2,850 OREO: Residential mortgages $ 344 Sales comparison Discount to appraised value 20.80% - 48.17% $ 344 The following table presents information related to Level 3 recurring fair value measurements at March 31, 2017 and December 31, 2016 (in thousands): Description Fair Value at Valuation Technique Unobservable Inputs Range Corporate bonds and notes $ 251 Discounted cash flow Credit spread 1.73% - 1.73% Derivative liabilities $ 65 Historical trend Credit default rate 4.92% - 4.92% Description Fair Value at Valuation Technique Unobservable Inputs Range Corporate bonds and notes $ 250 Discounted cash flow Credit spread 1.73% - 1.73% Derivative liabilities $ 68 Historical trend Credit default rate 4.92% - 4.92%
Carrying value and estimated fair value of financial instruments	The carrying amounts and estimated fair values of other financial instruments, at March 31, 2017 and December 31, 2016 , are as follows (in thousands): March 31, 2017 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 26,275 $ 26,275 $ — $ — $ 26,275 Interest-bearing deposits in other financial institutions 99,410 99,410 — — 99,410 Trading assets 826 826 — — 826 Securities available for sale 302,581 175 302,155 251 302,581 Securities held to maturity 3,721 — 977 2,935 3,912 FHLBNY and FRBNY stock 3,597 — — — N/A Loans, net 1,219,291 — — 1,229,871 1,229,871 Loans held for sale 20 — 20 — 20 Accrued interest receivable 4,066 4 909 3,153 4,066 Derivative assets 747 — 747 — 747 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,403,637 $ 1,403,637 $ — $ — $ 1,403,637 Time deposits 140,614 — 140,934 — 140,934 Securities sold under agreements to repurchase 15,215 — 15,398 — 15,398 FHLBNY term advances 9,065 — 9,138 — 9,138 Accrued interest payable 172 23 149 — 172 Derivative liabilities 812 — 747 65 812 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. December 31, 2016 Financial assets: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Estimated Fair Value Cash and due from financial institutions $ 28,205 $ 28,205 $ — $ — $ 28,205 Interest-bearing deposits in other financial institutions 45,957 45,957 — — 45,957 Trading assets 774 774 — — 774 Securities available for sale 303,402 170 302,982 250 303,402 Securities held to maturity 4,705 — 981 3,931 4,912 FHLBNY and FRBNY stock 4,041 — — — N/A Loans, net 1,186,037 — — 1,205,814 1,205,814 Loans held for sale 412 — 412 — 412 Accrued interest receivable 4,000 9 784 3,207 4,000 Derivative assets 693 — 693 — 693 Financial liabilities: Deposits: Demand, savings, and insured money market accounts $ 1,312,237 $ 1,312,237 $ — $ — $ 1,312,237 Time deposits 144,106 — 144,460 — 144,460 Securities sold under agreements to repurchase 27,606 — 27,880 — 27,880 FHLBNY term advances 9,093 — 9,189 — 9,189 Accrued interest payable 210 25 185 — 210 Derivative liabilities 761 — 693 68 761 (1) Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in goodwill	The changes in goodwill included in the core banking segment during the periods ended March 31, 2017 and 2016 were as follows (in thousands): 2017 2016 Beginning of year $ 21,824 $ 21,824 Acquired goodwill — — Ending balance March 31, $ 21,824 $ 21,824
Schedule of acquired finite-lived intangible assets by major class	Acquired intangible assets were as follows at March 31, 2017 and December 31, 2016 (in thousands): At March 31, 2017 At December 31, 2016 Balance Acquired Accumulated Amortization Balance Acquired Accumulated Amortization Core deposit intangibles $ 5,975 $ 4,827 $ 5,975 $ 4,689 Other customer relationship intangibles 5,633 4,062 5,633 3,974 Total $ 11,608 $ 8,889 $ 11,608 $ 8,663
Schedule of expected amortization expense	The remaining estimated aggregate amortization expense at March 31, 2017 is listed below (in thousands): Year Estimated Expense 2017 $ 634 2018 734 2019 609 2020 484 2021 258 Total $ 2,719

SECURITIES SOLD UNDER AGREEME26

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Repurchase Agreements [Abstract]
Summary of securities sold under agreements to repurchase	A summary of securities sold under agreements to repurchase as of March 31, 2017 and December 31, 2016 is as follows (in thousands): March 31, 2017 Overnight and Continuous Up to 1 Year 1 - 3 Years 3+ Years Total Mortgage-backed securities, residential $ 8,097 $ — $ 13,690 $ — $ 21,787 Excess collateral held (2,882 ) — (3,690 ) — (6,572 ) Gross amount of recognized liabilities for repurchase agreements $ 5,215 $ — $ 10,000 $ — $ 15,215 December 31, 2016 Overnight and Continuous Up to 1 Year 1 - 3 Years 3+ Years Total Obligations of U.S. Government and U.S. Government sponsored enterprises $ — $ 1,276 $ — $ — $ 1,276 Mortgage-backed securities, residential 13,092 9,664 14,244 — 37,000 Total 13,092 10,940 14,244 — 38,276 Excess collateral held (5,486 ) (940 ) (4,244 ) — (10,670 ) Gross amount of recognized liabilities for repurchase agreements $ 7,606 $ 10,000 $ 10,000 $ — $ 27,606

ACCUMULATED OTHER COMPREHENSI27

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Components of accumulated other comprehensive income (loss)	The following is a summary of the changes in accumulated other comprehensive loss by component, net of tax, for the periods indicated (in thousands): Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2017 $ (4,356 ) $ (6,398 ) $ (10,754 ) Other comprehensive income before reclassification 1,977 — 1,977 Amounts reclassified from accumulated other comprehensive income — 21 21 Net current period other comprehensive income 1,977 21 1,998 Balance at March 31, 2017 $ (2,379 ) $ (6,377 ) $ (8,756 ) Unrealized Gains and Losses on Securities Available for Sale Defined Benefit and Other Benefit Plans Total Balance at January 1, 2016 $ 210 $ (11,152 ) $ (10,942 ) Other comprehensive loss before reclassification 1,936 — 1,936 Amounts reclassified from accumulated other comprehensive income (565 ) 233 (332 ) Net current period other comprehensive income 1,371 233 1,604 Balance at March 31, 2016 $ 1,581 $ (10,919 ) $ (9,338 )
Reclassification out of accumulated other comprehensive income	The following is the reclassification out of accumulated other comprehensive income for the periods indicated (in thousands): Details about Accumulated Other Comprehensive Income Components Three Months Ended Affected Line Item 2017 2016 Unrealized gains and losses on securities available for sale: Realized gains on securities available for sale $ — $ (908 ) Net gains (losses) on securities transactions Tax effect — 343 Income tax expense Net of tax — (565 ) Amortization of defined pension plan and other benefit plan items: Prior service costs (a) (55 ) (22 ) Pension and other employee benefits Actuarial losses (a) 88 396 Pension and other employee benefits Tax effect (12 ) (141 ) Income tax expense Net of tax 21 233 Total reclassification for the period, net of tax $ 21 $ (332 ) (a) These accumulated other comprehensive income components are included in the computation of net periodic pension and other benefit plan costs (see Note 10 for additional information).

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contractual amounts of financial instruments with off-balance sheet risk	The following table lists the contractual amounts of financial instruments with off-balance sheet risk at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 35,706 $ 29,629 $ 38,246 $ 33,189 Unused lines of credit 913 209,879 610 208,124 Standby letters of credit — 14,156 — 14,241

COMPONENTS OF QUARTERLY AND Y29

COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Tables)	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
Components of net periodic benefit costs	The components of net periodic expense for the Corporation’s pension and other benefit plans for the periods indicated are as follows (in thousands): Three Months Ended 2017 2016 Qualified Pension Plan Service cost, benefits earned during the period $ — $ 296 Interest cost on projected benefit obligation 403 470 Expected return on plan assets (785 ) (755 ) Amortization of unrecognized transition obligation — — Amortization of unrecognized prior service cost — 2 Amortization of unrecognized net loss 58 384 Net periodic pension cost $ (324 ) $ 397 Supplemental Pension Plan Service cost, benefits earned during the period $ — $ 11 Interest cost on projected benefit obligation 12 13 Expected return on plan assets — — Amortization of unrecognized prior service cost — — Amortization of unrecognized net loss 1 6 Net periodic supplemental pension cost $ 13 $ 30 Postretirement Plan, Medical and Life Service cost, benefits earned during the period $ — $ 12 Interest cost on projected benefit obligation 4 17 Expected return on plan assets — — Amortization of unrecognized prior service cost (55 ) (24 ) Amortization of unrecognized net loss 29 6 Net periodic postretirement, medical and life cost $ (22 ) $ 11

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Summarized financial information showing reconciliation of segment net income loss and assets to consolidated results	Accounting policies for the segments are the same as those described in Note 1 of the Corporation’s 2016 Annual Report on Form 10-K, which was filed with the SEC on March 8, 2017. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. CFS amounts are the primary differences between segment amounts and consolidated totals, and are reflected in the Holding Company, CFS, and CRM column below, along with amounts to eliminate transactions between those segments (in thousands). CRM was formed during the second quarter of 2016, therefore, is not included within prior year comparative information. Three months ended March 31, 2017 Core Banking WMG Holding Company, CFS, and CRM Consolidated Totals Interest and dividend income $ 14,311 $ — $ 3 $ 14,314 Interest expense 820 — — 820 Net interest income 13,491 — 3 13,494 Provision for loan losses 1,040 — — 1,040 Net interest income after provision for loan losses 12,451 — 3 12,454 Other non-interest income 2,605 2,109 133 4,847 Other non-interest expenses 11,444 1,305 296 13,045 Income (loss) before income tax expense (benefit) 3,612 804 (160 ) 4,256 Income tax expense (benefit) 1,048 305 (76 ) 1,277 Segment net income (loss) $ 2,564 $ 499 $ (84 ) $ 2,979 Segment assets $ 1,729,057 $ 4,270 $ 2,773 $ 1,736,100 Three months ended March 31, 2016 Core Banking WMG Holding Company And CFS Consolidated Totals Interest and dividend income $ 13,949 $ — $ — $ 13,949 Interest expense 924 — — 924 Net interest income 13,025 — — 13,025 Provision for loan losses 595 — — 595 Net interest income after provision for loan losses 12,430 — — 12,430 Other non-interest income 3,416 2,012 173 5,601 Other non-interest expenses 12,252 1,389 367 14,008 Income (loss) before income tax expense (benefit) 3,594 623 (194 ) 4,023 Income tax expense (benefit) 1,170 235 (89 ) 1,316 Segment net income $ 2,424 $ 388 $ (105 ) $ 2,707 Segment assets $ 1,637,242 $ 4,668 $ 1,316 $ 1,643,226

STOCK COMPENSATION (Tables)

STOCK COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of restricted stock activity	A summary of restricted stock activity for the three month period ended March 31, 2017 is presented below: Shares Weighted–Average Grant Date Fair Value Nonvested at January 1, 2017 23,794 $ 29.90 Granted — — Vested (415 ) 26.59 Forfeited or cancelled (1,139 ) 29.97 Nonvested at March 31, 2017 22,240 $ 29.96

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	Dec. 31, 2018USD ($)	Mar. 31, 2017USD ($)lease	Dec. 31, 2016USD ($)
Property, Plant and Equipment [Line Items]
Equity investment portfolio (less than $1.0 million)		$ 1,000
Long term capital lease obligation		$ 4,671	$ 4,722
Number of leased facilities | lease		13
Forecast | Use Rights
Property, Plant and Equipment [Line Items]
Property, plant, and equipment, gross	$ 5,000
Long term capital lease obligation	$ 5,000

EARNING PER COMMON SHARE (Detai

EARNING PER COMMON SHARE (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Weighted average number of shares outstanding (shares)	4,790,000	4,750,000
Dilutive common stock equivalents (shares)	0	0

SECURITIES - Securities Availab

SECURITIES - Securities Available for Sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Amortized cost and estimated fair value of securities available for sale [Abstract]
Amortized Cost	$ 306,414		$ 310,401
Unrealized Gains	998		806
Unrealized Losses	4,831		7,805
Estimated Fair Value	302,581		303,402
Amortized Cost [Abstract]
Within one year	8,197
After one, but within five years	33,091
After five, but within ten years	17,184
After ten years	3,078
Total	61,550
Total	306,149
Fair Value [Abstract]
Within one year	8,224
After one, but within five years	33,411
After five, but within ten years	17,168
After ten years	3,043
Total	61,846
Total	302,074
Proceeds from sales and calls of securities resulting in gains or losses [Abstract]
Proceeds	0	$ 15,422
Gross gains	0	908
Gross losses	0	0
Tax expense	0	$ 343
Obligations of U.S. Government and U.S. Government sponsored enterprises
Amortized cost and estimated fair value of securities available for sale [Abstract]
Amortized Cost	17,295		17,300
Unrealized Gains	145		155
Unrealized Losses	0		0
Estimated Fair Value	17,440		17,455
Mortgage-backed securities, residential
Amortized cost and estimated fair value of securities available for sale [Abstract]
Amortized Cost	244,049		253,156
Unrealized Gains	319		202
Unrealized Losses	4,690		7,492
Estimated Fair Value	239,678		245,866
Amortized Cost [Abstract]
Without Single Maturity Date	244,049
Fair Value [Abstract]
Without Single Maturity Date	239,678
Obligations of states and political subdivisions
Amortized cost and estimated fair value of securities available for sale [Abstract]
Amortized Cost	44,007		38,843
Unrealized Gains	288		209
Unrealized Losses	140		312
Estimated Fair Value	44,155		38,740
Corporate bonds and notes
Amortized cost and estimated fair value of securities available for sale [Abstract]
Amortized Cost	248		249
Unrealized Gains	3		1
Unrealized Losses	0		0
Estimated Fair Value	251		250
SBA loan pools
Amortized cost and estimated fair value of securities available for sale [Abstract]
Amortized Cost	550		568
Unrealized Gains	1		3
Unrealized Losses	1		1
Estimated Fair Value	550		570
Amortized Cost [Abstract]
Without Single Maturity Date	550
Fair Value [Abstract]
Without Single Maturity Date	550
Corporate stocks
Amortized cost and estimated fair value of securities available for sale [Abstract]
Amortized Cost	265		285
Unrealized Gains	242		236
Unrealized Losses	0		0
Estimated Fair Value	$ 507		$ 521

SECURITIES - Securities Held to

SECURITIES - Securities Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Amortized cost and estimated fair value of securities held to maturity [Abstract]
Amortized Cost	$ 3,721	$ 4,705
Unrealized Gains	194	207
Unrealized Losses	3	0
Securities held to maturity	3,912	4,912
Amortized Cost [Abstract]
Within one year	866
After one, but within five years	2,583
After five, but within ten years	272
After ten years	0
Total	3,721
Fair Value [Abstract]
Within one year	873
After one, but within five years	2,729
After five, but within ten years	310
After ten years	0
Total	3,912
Obligations of states and political subdivisions
Amortized cost and estimated fair value of securities held to maturity [Abstract]
Amortized Cost	2,741	3,725
Unrealized Gains	194	206
Unrealized Losses	0	0
Securities held to maturity	2,935	3,931
Time deposits with other financial institutions
Amortized cost and estimated fair value of securities held to maturity [Abstract]
Amortized Cost	980	980
Unrealized Gains	0	1
Unrealized Losses	3	0
Securities held to maturity	$ 977	$ 981

SECURITIES - Investment Securit

SECURITIES - Investment Securities Available for Sale in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract]
Less than 12 months	$ 233,523	$ 259,567
12 months or longer	219	225
Total	233,742	259,792
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	4,830	7,804
12 months or longer	1	1
Total	4,831	7,805
Mortgage-backed securities, residential
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract]
Less than 12 months	220,708	233,843
12 months or longer	0	0
Total	220,708	233,843
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	4,690	7,492
12 months or longer	0	0
Total	4,690	7,492
Obligations of states and political subdivisions
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract]
Less than 12 months	12,815	25,724
12 months or longer	0	0
Total	12,815	25,724
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	140	312
12 months or longer	0	0
Total	140	312
SBA loan pools
Available-for-sale securities in a continuous unrealized loss position, fair value [Abstract]
Less than 12 months	0	0
12 months or longer	219	225
Total	219	225
Available-for-sale securities in a continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	0	0
12 months or longer	1	1
Total	$ 1	$ 1

LOANS AND ALLOWANCE FOR LOAN 37

LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	$ 1,234,251	$ 1,200,290
Interest receivable on loans	3,136	3,192
Total recorded investment in loans	1,237,387	1,203,482
Commercial and agricultural:
Composition of loan portfolio [Abstract]
Total recorded investment in loans	178,534	177,027
Commercial mortgages:
Composition of loan portfolio [Abstract]
Total recorded investment in loans	604,166	570,156
Commercial mortgages: | Construction
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	51,706	46,387
Total recorded investment in loans	51,840	46,510
Commercial mortgages: | Commercial mortgages
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	550,906	522,269
Total recorded investment in loans	552,326	523,646
Residential mortgages
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	198,020	198,493
Total recorded investment in loans	198,492	198,965
Consumer loans:
Composition of loan portfolio [Abstract]
Total recorded investment in loans	256,195	257,334
Consumer loans: | Credit cards
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	1,409	1,476
Total recorded investment in loans	1,409	1,476
Consumer loans: | Home equity lines and loans
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	99,032	98,590
Total recorded investment in loans	99,291	98,853
Consumer loans: | Indirect consumer loans
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	138,273	139,572
Total recorded investment in loans	138,603	139,993
Consumer loans: | Direct consumer loans
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	16,830	16,942
Total recorded investment in loans	16,892	17,012
Commercial and industrial | Commercial and agricultural:
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	177,575	176,201
Total recorded investment in loans	178,033	176,666
Agricultural | Commercial and agricultural:
Composition of loan portfolio [Abstract]
Total loans, net of deferred origination fees and costs	500	360
Total recorded investment in loans	$ 501	$ 361

LOANS AND ALLOWANCE FOR LOAN 38

LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	$ 14,253	$ 14,260
Charge-offs	(444)	(451)
Recoveries	111	123
Net recoveries (charge-offs)	(333)	(328)
Provision	1,040	595
Ending balance	14,960	14,527
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment			$ 998	$ 876
Collectively evaluated for impairment			13,878	13,293
Total ending allowance balance	14,253	14,260	14,960	14,253
Loans [Abstract]
Loans individually evaluated for impairment			13,440	11,926
Loans collectively evaluated for impairment			1,222,577	1,190,138
Total ending loans balance			1,237,387	1,203,482
Loans acquired with deteriorated credit quality
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	84
Ending balance	84
Ending allowance balance attributable to loans [Abstract]
Total ending allowance balance	84		84	84
Loans [Abstract]
Total ending loans balance			1,370	1,418
Commercial and agricultural:
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	1,589	1,831
Charge-offs	(5)	(8)
Recoveries	24	32
Net recoveries (charge-offs)	19	24
Provision	42	(60)
Ending balance	1,650	1,795
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			1,650	1,589
Total ending allowance balance	1,589	1,831	1,650	1,589
Loans [Abstract]
Loans individually evaluated for impairment			649	693
Loans collectively evaluated for impairment			177,885	176,334
Total ending loans balance			178,534	177,027
Commercial and agricultural: | Loans acquired with deteriorated credit quality
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	0
Ending balance	0
Ending allowance balance attributable to loans [Abstract]
Total ending allowance balance	0		0	0
Loans [Abstract]
Total ending loans balance			0	0
Commercial Mortgages
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	7,270	7,112
Charge-offs	0	0
Recoveries	1	7
Net recoveries (charge-offs)	1	7
Provision	478	413
Ending balance	7,749	7,532
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment			845	735
Collectively evaluated for impairment			6,845	6,476
Total ending allowance balance	7,270	7,112	7,749	7,270
Loans [Abstract]
Loans individually evaluated for impairment			11,969	10,382
Loans collectively evaluated for impairment			590,922	558,451
Total ending loans balance			604,166	570,156
Commercial Mortgages | Loans acquired with deteriorated credit quality
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	59
Ending balance	59
Ending allowance balance attributable to loans [Abstract]
Total ending allowance balance	59		59	59
Loans [Abstract]
Total ending loans balance			1,275	1,323
Residential mortgages
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	1,523	1,464
Charge-offs	(12)	0
Recoveries	17	0
Net recoveries (charge-offs)	5	0
Provision	(16)	18
Ending balance	1,512	1,482
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			1,487	1,498
Total ending allowance balance	1,523	1,464	1,512	1,523
Loans [Abstract]
Loans individually evaluated for impairment			390	396
Loans collectively evaluated for impairment			198,007	198,474
Total ending loans balance			198,492	198,965
Residential mortgages | Loans acquired with deteriorated credit quality
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	25
Ending balance	25
Ending allowance balance attributable to loans [Abstract]
Total ending allowance balance	25		25	25
Loans [Abstract]
Total ending loans balance			95	95
Consumer Loans
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	3,871	3,853
Charge-offs	(427)	(443)
Recoveries	69	84
Net recoveries (charge-offs)	(358)	(359)
Provision	536	224
Ending balance	4,049	3,718
Ending allowance balance attributable to loans [Abstract]
Individually evaluated for impairment			153	141
Collectively evaluated for impairment			3,896	3,730
Total ending allowance balance	3,871	$ 3,853	4,049	3,871
Loans [Abstract]
Loans individually evaluated for impairment			432	455
Loans collectively evaluated for impairment			255,763	256,879
Total ending loans balance			256,195	257,334
Consumer Loans | Loans acquired with deteriorated credit quality
Allowance for loan losses, by portfolio segment [Roll Forward]
Beginning balance	0
Ending balance	0
Ending allowance balance attributable to loans [Abstract]
Total ending allowance balance	$ 0		0	0
Loans [Abstract]
Total ending loans balance			$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 39

LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Unpaid Principal Balance [Abstract]
Unpaid principal balance, total	$ 14,364		$ 12,852
Recorded Investment [Abstract]
Recorded investment, total	13,440		11,926
Allowance for loan losses allocated	998		876
Average Recorded Investment [Abstract]
Average recorded investment, total	12,684	$ 14,607
Interest Income, Accrual Method [Abstract]
Interest income, accrual method, total	75	87
Commercial mortgages: | Construction
Unpaid Principal Balance [Abstract]
With no related allowance, Unpaid Principal Balance	1,558		277
Recorded Investment [Abstract]
With no related allowance, Recorded Investment	1,559		278
Average Recorded Investment [Abstract]
With no related allowance, Average Recorded Investment	919	348
Interest Income, Accrual Method [Abstract]
With no related allowance, Interest Income, Accrual Method	3	4
Commercial mortgages: | Commercial mortgages
Unpaid Principal Balance [Abstract]
With no related allowance, Unpaid Principal Balance	6,133		8,792
With related allowance, Unpaid Principal Balance	5,206		2,245
Recorded Investment [Abstract]
With no related allowance, Recorded Investment	6,144		7,857
With related allowance, Recorded Investment	4,266		2,247
Allowance for loan losses allocated	845		735
Average Recorded Investment [Abstract]
With no related allowance, Average Recorded Investment	7,000	7,395
With related allowance, Average Recorded Investment	3,257	4,845
Interest Income, Accrual Method [Abstract]
With no related allowance, Interest Income, Accrual Method	59	68
With related allowance, Interest Income, Accrual Method	1	1
Residential mortgages
Unpaid Principal Balance [Abstract]
With no related allowance, Unpaid Principal Balance	389		395
Recorded Investment [Abstract]
With no related allowance, Recorded Investment	390		396
Average Recorded Investment [Abstract]
With no related allowance, Average Recorded Investment	393	273
Interest Income, Accrual Method [Abstract]
With no related allowance, Interest Income, Accrual Method	2	0
Consumer Loans | Home equity lines and loans
Unpaid Principal Balance [Abstract]
With no related allowance, Unpaid Principal Balance	72		93
With related allowance, Unpaid Principal Balance	360		360
Recorded Investment [Abstract]
With no related allowance, Recorded Investment	72		95
With related allowance, Recorded Investment	360		360
Allowance for loan losses allocated	153		141
Average Recorded Investment [Abstract]
With no related allowance, Average Recorded Investment	84	107
With related allowance, Average Recorded Investment	360	364
Interest Income, Accrual Method [Abstract]
With no related allowance, Interest Income, Accrual Method	1	1
With related allowance, Interest Income, Accrual Method	0	0
Commercial and industrial | Commercial and agricultural:
Unpaid Principal Balance [Abstract]
With no related allowance, Unpaid Principal Balance	646		690
Recorded Investment [Abstract]
With no related allowance, Recorded Investment	649		$ 693
Average Recorded Investment [Abstract]
With no related allowance, Average Recorded Investment	671	1,266
With related allowance, Average Recorded Investment	0	9
Interest Income, Accrual Method [Abstract]
With no related allowance, Interest Income, Accrual Method	9	13
With related allowance, Interest Income, Accrual Method	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 40

LOANS AND ALLOWANCE FOR LOAN LOSSES - Receivables Past Due (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	$ 12,914	$ 12,043
Loans Past Due 90 Days or More and Still Accruing	27	13
Aging of the recorded investment in loans past due [Abstract]
Past Due	16,631	17,873
Loans Not Past Due	1,219,386	1,184,191
Total ending loans balance	1,237,387	1,203,482
30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	5,284	4,969
60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	4,153	6,383
90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	7,194	6,521
Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	1,370	1,418
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	1,370	1,418
Commercial and agricultural:
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	178,534	177,027
Commercial and agricultural: | Loans acquired with deteriorated credit quality
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	0	0
Commercial mortgages:
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	604,166	570,156
Commercial mortgages: | Loans acquired with deteriorated credit quality
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	1,275	1,323
Commercial mortgages: | Construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	1,308	19
Loans Past Due 90 Days or More and Still Accruing	0	0
Aging of the recorded investment in loans past due [Abstract]
Past Due	1,289	1,177
Loans Not Past Due	50,551	45,333
Total ending loans balance	51,840	46,510
Commercial mortgages: | Construction | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	0	0
Commercial mortgages: | Construction | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	0	1,177
Commercial mortgages: | Construction | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	1,289	0
Commercial mortgages: | Construction | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	0	0
Commercial mortgages: | Commercial mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	5,639	5,454
Loans Past Due 90 Days or More and Still Accruing	0	0
Aging of the recorded investment in loans past due [Abstract]
Past Due	6,824	7,524
Loans Not Past Due	544,227	514,799
Total ending loans balance	552,326	523,646
Commercial mortgages: | Commercial mortgages | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	941	652
Commercial mortgages: | Commercial mortgages | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	3,361	4,460
Commercial mortgages: | Commercial mortgages | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	2,522	2,412
Commercial mortgages: | Commercial mortgages | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	1,275	1,323
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	1,275	1,323
Residential mortgages
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	3,524	4,201
Loans Past Due 90 Days or More and Still Accruing	0	0
Aging of the recorded investment in loans past due [Abstract]
Past Due	4,288	4,919
Loans Not Past Due	194,109	193,951
Total ending loans balance	198,492	198,965
Residential mortgages | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	2,276	2,100
Residential mortgages | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	254	436
Residential mortgages | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	1,758	2,383
Residential mortgages | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	95	95
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	95	95
Consumer Loans
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	256,195	257,334
Consumer Loans | Loans acquired with deteriorated credit quality
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	0	0
Consumer Loans | Credit cards
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Loans Past Due 90 Days or More and Still Accruing	18	11
Aging of the recorded investment in loans past due [Abstract]
Past Due	48	23
Loans Not Past Due	1,361	1,453
Total ending loans balance	1,409	1,476
Consumer Loans | Credit cards | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	17	3
Consumer Loans | Credit cards | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	13	9
Consumer Loans | Credit cards | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	18	11
Consumer Loans | Credit cards | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	0	0
Consumer Loans | Home equity lines and loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	1,647	1,670
Loans Past Due 90 Days or More and Still Accruing	0	0
Aging of the recorded investment in loans past due [Abstract]
Past Due	1,600	1,376
Loans Not Past Due	97,691	97,477
Total ending loans balance	99,291	98,853
Consumer Loans | Home equity lines and loans | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	289	227
Consumer Loans | Home equity lines and loans | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	209	0
Consumer Loans | Home equity lines and loans | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	1,102	1,149
Consumer Loans | Home equity lines and loans | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	0	0
Consumer Loans | Indirect consumer loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	765	654
Loans Past Due 90 Days or More and Still Accruing	0	0
Aging of the recorded investment in loans past due [Abstract]
Past Due	2,339	2,602
Loans Not Past Due	136,264	137,391
Total ending loans balance	138,603	139,993
Consumer Loans | Indirect consumer loans | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	1,538	1,773
Consumer Loans | Indirect consumer loans | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	313	287
Consumer Loans | Indirect consumer loans | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	488	542
Consumer Loans | Indirect consumer loans | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	0	0
Consumer Loans | Direct consumer loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	31	45
Loans Past Due 90 Days or More and Still Accruing	0	0
Aging of the recorded investment in loans past due [Abstract]
Past Due	78	83
Loans Not Past Due	16,814	16,929
Total ending loans balance	16,892	17,012
Consumer Loans | Direct consumer loans | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	68	54
Consumer Loans | Direct consumer loans | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	2	7
Consumer Loans | Direct consumer loans | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	8	22
Consumer Loans | Direct consumer loans | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	0	0
Commercial and industrial | Commercial and agricultural:
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Loans Past Due 90 Days or More and Still Accruing	9	2
Aging of the recorded investment in loans past due [Abstract]
Past Due	165	169
Loans Not Past Due	177,868	176,497
Total ending loans balance	178,033	176,666
Commercial and industrial | Commercial and agricultural: | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	155	160
Commercial and industrial | Commercial and agricultural: | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	1	7
Commercial and industrial | Commercial and agricultural: | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	9	2
Commercial and industrial | Commercial and agricultural: | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	0	0
Agricultural | Commercial and agricultural:
Aging of the recorded investment in loans past due [Abstract]
Past Due	0	0
Loans Not Past Due	501	361
Total ending loans balance	501	361
Agricultural | Commercial and agricultural: | 30 - 59 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	0	0
Agricultural | Commercial and agricultural: | 60 - 89 Days Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	0	0
Agricultural | Commercial and agricultural: | 90 Days or More Past Due
Aging of the recorded investment in loans past due [Abstract]
Past Due	0	0
Agricultural | Commercial and agricultural: | Loans acquired with deteriorated credit quality
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual	0	0
Aging of the recorded investment in loans past due [Abstract]
Total ending loans balance	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 41

LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructuring (Details)	3 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2017USD ($)	Mar. 31, 2017USD ($)loan	Mar. 31, 2016USD ($)loan	Dec. 31, 2016USD ($)
Troubled Debt Restructurings [Abstract]
Recorded investment in troubled debt restructurings	$ 10,300,000	$ 10,300,000	$ 10,300,000		$ 10,200,000
Troubled debt restructuring reserve	900,000	900,000	900,000		900,000
Troubled debt restructurings accruing interest under modified terms	5,900,000	5,900,000	5,900,000		5,800,000
Troubled debt restructurings on non-accrual status	4,400,000	4,400,000	4,400,000		4,400,000
Additional amounts committed to customers with loans classified as troubled debt restructurings	0	$ 0	$ 0		$ 0
Reduction of interest rate duration				3 years
Additional amounts of interest and past due escrow payments capitalized				$ 4,000
Increase (decrease) in allowance for loan losses				0
TDR charge-offs	0			$ 0
Number of Loans		0	2
Loans by class modified as troubled debt restructurings [Abstract]
Number of loans | loan			1	1
Pre-modification outstanding recorded investment	166,000			$ 121,000
Post-modification outstanding recorded investment	166,000			$ 125,000
Recorded Investment	2,145,000
Commercial mortgages
Troubled Debt Restructurings [Abstract]
Number of Loans | loan			2
Loans by class modified as troubled debt restructurings [Abstract]
Recorded Investment	2,145,000
Commercial mortgages
Loans by class modified as troubled debt restructurings [Abstract]
Number of loans | loan			1
Pre-modification outstanding recorded investment	166,000
Post-modification outstanding recorded investment	$ 166,000
Residential mortgages
Loans by class modified as troubled debt restructurings [Abstract]
Number of loans | loan				1
Pre-modification outstanding recorded investment				$ 121,000
Post-modification outstanding recorded investment				$ 125,000

LOANS AND ALLOWANCE FOR LOAN 42

LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit Quality Indicator (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Finance receivable by credit quality indicator [Abstract]
Loans	$ 1,237,387		$ 1,203,482
Deteriorated Loans Transferred in [Abstract]
Contractually required principal and interest, opening balance	1,940	$ 2,912
Contractually required principal and interest, income accretion	0	0
Contractually required principal and interest, all other adjustments	(63)	(54)
Contractually required principal and interest, closing balance	1,877	2,858
Contractual cash flows not expected to be collected (nonaccretable discount), opening balance	(352)	(506)
Contractual cash flows not expected to be collected (nonaccretable discount), income accretion	0	0
Contractual cash flows not expected to be collected (nonaccretable discount), all other adjustments	0	1
Contractual cash flows not expected to be collected (nonaccretable discount), closing balance	(352)	(505)
Cash flows expected to be collected, opening balance	1,588	2,406
Cash flows expected to be collected, income accretion	0	0
Cash flows expected to be collected, all other adjustments	(63)	(53)
Cash flows expected to be collected, closing balance	1,525	2,353
Interest component of expected cash flows (accretable yield), opening balance	(170)	(311)
Interest component of expected cash flows (accretable yield), income accretion	15	37
Interest component of expected cash flows (accretable yield), all other adjustments	0	(1)
Interest component of expected cash flows (accretable yield), closing balance	(155)	(275)
Fair value of loans acquired with deteriorating credit quality, opening balance	1,418	2,095
Fair value of loans acquired with deteriorating credit quality, income accretion	15	37
Fair value of loans acquired with deteriorating credit quality, all other adjustments	(63)	(54)
Fair value of loans acquired with deteriorating credit quality, closing balance	1,370	$ 2,078
Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	1,370		1,418
Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	448,625		449,634
Pass
Finance receivable by credit quality indicator [Abstract]
Loans	748,834		715,012
Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	12,738		11,110
Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	24,381		24,848
Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	1,439		1,460
Commercial and agricultural:
Finance receivable by credit quality indicator [Abstract]
Loans	178,534		177,027
Commercial and agricultural: | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Commercial mortgages:
Finance receivable by credit quality indicator [Abstract]
Loans	604,166		570,156
Commercial mortgages: | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	1,275		1,323
Commercial mortgages: | Construction
Finance receivable by credit quality indicator [Abstract]
Loans	51,840		46,510
Commercial mortgages: | Construction | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Commercial mortgages: | Construction | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Commercial mortgages: | Construction | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	50,281		45,055
Commercial mortgages: | Construction | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	252		259
Commercial mortgages: | Construction | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	1,307		1,196
Commercial mortgages: | Construction | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Commercial mortgages: | Commercial mortgages
Finance receivable by credit quality indicator [Abstract]
Loans	552,326		523,646
Commercial mortgages: | Commercial mortgages | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	1,275		1,323
Commercial mortgages: | Commercial mortgages | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Commercial mortgages: | Commercial mortgages | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	525,745		496,723
Commercial mortgages: | Commercial mortgages | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	8,283		8,574
Commercial mortgages: | Commercial mortgages | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	15,584		15,566
Commercial mortgages: | Commercial mortgages | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	1,439		1,460
Residential mortgages
Finance receivable by credit quality indicator [Abstract]
Loans	198,492		198,965
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	198,492		198,965
Residential mortgages | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	95		95
Residential mortgages | Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	194,968		194,764
Residential mortgages | Non-Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	3,524		4,201
Residential mortgages | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	194,873		194,669
Residential mortgages | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Residential mortgages | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Residential mortgages | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	3,524		4,201
Residential mortgages | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans:
Finance receivable by credit quality indicator [Abstract]
Loans	256,195		257,334
Consumer loans: | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Credit cards
Finance receivable by credit quality indicator [Abstract]
Loans	1,409		1,476
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	1,409		1,476
Consumer loans: | Credit cards | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Credit cards | Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	1,409		1,476
Consumer loans: | Credit cards | Non-Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	0		0
Consumer loans: | Credit cards | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	1,409		1,476
Consumer loans: | Credit cards | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Credit cards | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Credit cards | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Credit cards | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Home equity lines and loans
Finance receivable by credit quality indicator [Abstract]
Loans	99,291		98,853
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	99,291		98,853
Consumer loans: | Home equity lines and loans | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Home equity lines and loans | Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	97,644		97,183
Consumer loans: | Home equity lines and loans | Non-Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	1,647		1,670
Consumer loans: | Home equity lines and loans | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	97,644		97,183
Consumer loans: | Home equity lines and loans | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Home equity lines and loans | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Home equity lines and loans | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	1,647		1,670
Consumer loans: | Home equity lines and loans | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Indirect consumer loans
Finance receivable by credit quality indicator [Abstract]
Loans	138,603		139,993
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	138,603		139,993
Consumer loans: | Indirect consumer loans | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Indirect consumer loans | Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	137,838		139,339
Consumer loans: | Indirect consumer loans | Non-Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	765		654
Consumer loans: | Indirect consumer loans | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	137,838		139,339
Consumer loans: | Indirect consumer loans | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Indirect consumer loans | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Indirect consumer loans | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	765		654
Consumer loans: | Indirect consumer loans | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Direct consumer loans
Finance receivable by credit quality indicator [Abstract]
Loans	16,892		17,012
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	16,892		17,012
Consumer loans: | Direct consumer loans | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Direct consumer loans | Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	16,861		16,967
Consumer loans: | Direct consumer loans | Non-Performing
Residential and consumer finance receivable [Abstract]
Residential and consumer loans receivable	31		45
Consumer loans: | Direct consumer loans | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	16,861		16,967
Consumer loans: | Direct consumer loans | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Direct consumer loans | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Consumer loans: | Direct consumer loans | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	31		45
Consumer loans: | Direct consumer loans | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Commercial and industrial | Commercial and agricultural:
Finance receivable by credit quality indicator [Abstract]
Loans	178,033		176,666
Commercial and industrial | Commercial and agricultural: | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Commercial and industrial | Commercial and agricultural: | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Commercial and industrial | Commercial and agricultural: | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	172,307		172,873
Commercial and industrial | Commercial and agricultural: | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	4,203		2,277
Commercial and industrial | Commercial and agricultural: | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans	1,523		1,516
Commercial and industrial | Commercial and agricultural: | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Agricultural | Commercial and agricultural:
Finance receivable by credit quality indicator [Abstract]
Loans	501		361
Agricultural | Commercial and agricultural: | Loans acquired with deteriorated credit quality
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Agricultural | Commercial and agricultural: | Not Rated
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Agricultural | Commercial and agricultural: | Pass
Finance receivable by credit quality indicator [Abstract]
Loans	501		361
Agricultural | Commercial and agricultural: | Special Mention
Finance receivable by credit quality indicator [Abstract]
Loans	0		0
Agricultural | Commercial and agricultural: | Substandard
Finance receivable by credit quality indicator [Abstract]
Loans			0
Agricultural | Commercial and agricultural: | Doubtful
Finance receivable by credit quality indicator [Abstract]
Loans	$ 0		$ 0

FAIR VALUE (Details)

FAIR VALUE (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Oct. 31, 2016
Financial Assets [Abstract]
Total available for sale securities	$ 302,581	$ 303,402
Trading assets	826	774
Transfers from Level 2 to Level 1		103	$ 158
Recurring
Financial Assets [Abstract]
Obligations of U.S. Government and U.S. Government sponsored enterprises	17,440	17,455
Mortgage-backed securities, residential	239,678	245,866
Obligations of states and political subdivisions	44,155	38,740
Corporate bonds and notes	251	250
SBA loan pools	550	570
Corporate stocks	507	521
Total available for sale securities	302,581	303,402
Trading assets	826	774
Derivative assets	747	693
Derivative liabilities	812	761
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial Assets [Abstract]
Obligations of U.S. Government and U.S. Government sponsored enterprises	0	0
Mortgage-backed securities, residential	0	0
Obligations of states and political subdivisions	0	0
Corporate bonds and notes	0	0
SBA loan pools	0	0
Corporate stocks	175	170
Total available for sale securities	175	170
Trading assets	826	774
Derivative assets	0	0
Derivative liabilities	0	0
Recurring | Significant Other Observable Inputs (Level 2)
Financial Assets [Abstract]
Obligations of U.S. Government and U.S. Government sponsored enterprises	17,440	17,455
Mortgage-backed securities, residential	239,678	245,866
Obligations of states and political subdivisions	44,155	38,740
Corporate bonds and notes	0	0
SBA loan pools	550	570
Corporate stocks	332	351
Total available for sale securities	302,155	302,982
Trading assets	0	0
Derivative assets	747	693
Derivative liabilities	747	693
Recurring | Significant Unobservable Inputs (Level 3)
Financial Assets [Abstract]
Obligations of U.S. Government and U.S. Government sponsored enterprises	0	0
Mortgage-backed securities, residential	0	0
Obligations of states and political subdivisions	0	0
Corporate bonds and notes	251	250
SBA loan pools	0	0
Corporate stocks	0	0
Total available for sale securities	251	250
Trading assets	0	0
Derivative assets	0	0
Derivative liabilities	65	68
Impaired Loans: | Non-recurring
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans	3,344	2,850
Impaired Loans: | Non-recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans	0	0
Impaired Loans: | Non-recurring | Significant Other Observable Inputs (Level 2)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans	0	0
Impaired Loans: | Non-recurring | Significant Unobservable Inputs (Level 3)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans	3,344	2,850
Other real estate owned: | Non-recurring
Impaired Loans, Fair Value Disclosure [Abstract]
Total other real estate owned, net	255	344
Other real estate owned: | Non-recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Impaired Loans, Fair Value Disclosure [Abstract]
Total other real estate owned, net	0	0
Other real estate owned: | Non-recurring | Significant Other Observable Inputs (Level 2)
Impaired Loans, Fair Value Disclosure [Abstract]
Total other real estate owned, net	0	0
Other real estate owned: | Non-recurring | Significant Unobservable Inputs (Level 3)
Impaired Loans, Fair Value Disclosure [Abstract]
Total other real estate owned, net	255	344
Commercial mortgages | Impaired Loans: | Non-recurring
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans	3,344	2,631
Commercial mortgages | Impaired Loans: | Non-recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans	0	0
Commercial mortgages | Impaired Loans: | Non-recurring | Significant Other Observable Inputs (Level 2)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans	0	0
Commercial mortgages | Impaired Loans: | Non-recurring | Significant Unobservable Inputs (Level 3)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans	3,344	2,631
Home equity lines and loans | Impaired Loans: | Non-recurring
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans		219
Home equity lines and loans | Impaired Loans: | Non-recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans		0
Home equity lines and loans | Impaired Loans: | Non-recurring | Significant Other Observable Inputs (Level 2)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans		0
Home equity lines and loans | Impaired Loans: | Non-recurring | Significant Unobservable Inputs (Level 3)
Impaired Loans, Fair Value Disclosure [Abstract]
Total impaired loans		219
Residential mortgages | Other real estate owned: | Non-recurring
Impaired Loans, Fair Value Disclosure [Abstract]
Total other real estate owned, net	255	344
Residential mortgages | Other real estate owned: | Non-recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Impaired Loans, Fair Value Disclosure [Abstract]
Total other real estate owned, net	0	0
Residential mortgages | Other real estate owned: | Non-recurring | Significant Other Observable Inputs (Level 2)
Impaired Loans, Fair Value Disclosure [Abstract]
Total other real estate owned, net	0	0
Residential mortgages | Other real estate owned: | Non-recurring | Significant Unobservable Inputs (Level 3)
Impaired Loans, Fair Value Disclosure [Abstract]
Total other real estate owned, net	$ 255	$ 344

FAIR VALUE - Unobservable Input

FAIR VALUE - Unobservable Inputs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Corporate Bonds and Notes
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance of recurring Level 3 assets at January 1	$ 250	$ 248
Derivative instruments entered into	0	0
Included in earnings - other non-interest income	0	0
Included in other comprehensive income	1	4
Transfers into Level 3	0	0
Balance of recurring Level 3 assets at September 30	251	252
Derivative Liabilities
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance of recurring Level 3 assets at January 1	(68)	(48)
Derivative instruments entered into	0	(2)
Included in earnings - other non-interest income	3	(34)
Included in other comprehensive income	0	0
Transfers into Level 3	0	0
Balance of recurring Level 3 assets at September 30	$ (65)	$ (84)

FAIR VALUE - Quantitative Infor

FAIR VALUE - Quantitative Information (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Corporate Bonds and Notes | Recurring | Discounted cash flow
Information related to Level 3 non-recurring fair value measurement [Abstract]
Assets, fair value disclosure	$ 251	$ 250
Corporate Bonds and Notes | Recurring | Discounted cash flow | Minimum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Credit spread	1.73%	1.73%
Corporate Bonds and Notes | Recurring | Discounted cash flow | Maximum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Credit spread	1.73%	1.73%
Corporate Bonds and Notes | Recurring | Discounted cash flow | Weighted Average
Information related to Level 3 non-recurring fair value measurement [Abstract]
Credit spread	1.73%	1.73%
Impaired Loans: | Non-recurring
Information related to Level 3 non-recurring fair value measurement [Abstract]
Fair value	$ 3,344	$ 2,850
Other real estate owned: | Non-recurring
Information related to Level 3 non-recurring fair value measurement [Abstract]
Fair value	255	344
Other real estate owned: | Non-recurring | Sales comparison
Information related to Level 3 non-recurring fair value measurement [Abstract]
Fair value	255
Derivative Liabilities | Recurring | Historical trend
Information related to Level 3 non-recurring fair value measurement [Abstract]
Liabilities, fair value disclosure	$ 65	$ 68
Derivative Liabilities | Recurring | Historical trend | Minimum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Credit default rate	4.92%	4.92%
Derivative Liabilities | Recurring | Historical trend | Maximum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Credit default rate	4.92%	4.92%
Derivative Liabilities | Recurring | Historical trend | Weighted Average
Information related to Level 3 non-recurring fair value measurement [Abstract]
Credit default rate	4.92%	4.92%
Commercial mortgages | Impaired Loans: | Non-recurring
Information related to Level 3 non-recurring fair value measurement [Abstract]
Fair value	$ 2,599	$ 2,631
Commercial mortgages | Impaired Loans: | Non-recurring | Sales comparison
Information related to Level 3 non-recurring fair value measurement [Abstract]
Fair value	$ 745
Commercial mortgages | Impaired Loans: | Non-recurring | Sales comparison | Minimum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value	10.00%
Commercial mortgages | Impaired Loans: | Non-recurring | Sales comparison | Maximum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value	40.04%
Commercial mortgages | Impaired Loans: | Non-recurring | Sales comparison | Weighted Average
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value	17.05%
Commercial mortgages | Impaired Loans: | Non-recurring | Income approach | Minimum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Capitalization Rate	9.00%	9.00%
Commercial mortgages | Impaired Loans: | Non-recurring | Income approach | Maximum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Capitalization Rate	10.00%	10.00%
Commercial mortgages | Impaired Loans: | Non-recurring | Income approach | Weighted Average
Information related to Level 3 non-recurring fair value measurement [Abstract]
Capitalization Rate	9.52%	9.52%
Home equity lines and loans | Impaired Loans: | Non-recurring
Information related to Level 3 non-recurring fair value measurement [Abstract]
Fair value		$ 219
Home equity lines and loans | Impaired Loans: | Non-recurring | Sales comparison | Minimum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value		22.98%
Home equity lines and loans | Impaired Loans: | Non-recurring | Sales comparison | Maximum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value		22.98%
Home equity lines and loans | Impaired Loans: | Non-recurring | Sales comparison | Weighted Average
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value		22.98%
Residential mortgages | Other real estate owned: | Non-recurring | Sales comparison | Minimum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value	20.80%	20.80%
Residential mortgages | Other real estate owned: | Non-recurring | Sales comparison | Maximum
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value	36.37%	48.17%
Residential mortgages | Other real estate owned: | Non-recurring | Sales comparison | Weighted Average
Information related to Level 3 non-recurring fair value measurement [Abstract]
Discount to appraised value	29.88%	30.50%

FAIR VALUE - Carrying Amounts a

FAIR VALUE - Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial Assets [Abstract]
Cash and due from financial institutions	$ 26,275	$ 28,205
Interest-bearing deposits in other financial institutions	99,410	45,957
Securities available for sale	302,581	303,402
Securities held to maturity	3,912	4,912
Loans, net	1,219,291	1,186,037
Accrued interest receivable	3,136	3,192
Financial liabilities [Abstract]
Securities sold under agreements to repurchase	15,215	27,606
FHLBNY term advances	9,065	9,093
Recurring
Financial Assets [Abstract]
Securities available for sale	302,581	303,402
Derivative assets	747	693
Financial liabilities [Abstract]
Derivative liabilities	812	761
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial Assets [Abstract]
Cash and due from financial institutions	26,275	28,205
Interest-bearing deposits in other financial institutions	99,410	45,957
Trading assets	826	774
Securities available for sale	175	170
Securities held to maturity	0	0
FHLBNY and FRBNY stock	0	0
Loans, net	0	0
Loans held for sale	0	0
Accrued interest receivable	4	9
Derivative assets	0	0
Financial liabilities [Abstract]
Demand, savings, and insured money market accounts	1,403,637	1,312,237
Time deposits	0	0
Securities sold under agreements to repurchase	0	0
FHLBNY term advances	0	0
Accrued interest payable	23	25
Derivative liabilities	0	0
Recurring | Significant Other Observable Inputs (Level 2)
Financial Assets [Abstract]
Cash and due from financial institutions	0	0
Interest-bearing deposits in other financial institutions	0	0
Trading assets	0	0
Securities available for sale	302,155	302,982
Securities held to maturity	977	981
FHLBNY and FRBNY stock	0	0
Loans, net	0	0
Loans held for sale	20	412
Accrued interest receivable	909	784
Derivative assets	747	693
Financial liabilities [Abstract]
Demand, savings, and insured money market accounts	0	0
Time deposits	140,934	144,460
Securities sold under agreements to repurchase	15,398	27,880
FHLBNY term advances	9,138	9,189
Accrued interest payable	149	185
Derivative liabilities	747	693
Recurring | Significant Unobservable Inputs (Level 3)
Financial Assets [Abstract]
Cash and due from financial institutions	0	0
Interest-bearing deposits in other financial institutions	0	0
Trading assets	0	0
Securities available for sale	251	250
Securities held to maturity	2,935	3,931
FHLBNY and FRBNY stock	0	0
Loans, net	1,229,871	1,205,814
Loans held for sale	0	0
Accrued interest receivable	3,153	3,207
Derivative assets	0	0
Financial liabilities [Abstract]
Demand, savings, and insured money market accounts	0	0
Time deposits	0	0
Securities sold under agreements to repurchase	0	0
FHLBNY term advances	0	0
Accrued interest payable	0	0
Derivative liabilities	65	68
Recurring | Carrying Amount
Financial Assets [Abstract]
Cash and due from financial institutions	26,275	28,205
Interest-bearing deposits in other financial institutions	99,410	45,957
Trading assets	826	774
Securities available for sale	302,581	303,402
Securities held to maturity	3,721	4,705
FHLBNY and FRBNY stock	3,597	4,041
Loans, net	1,219,291	1,186,037
Loans held for sale	20	412
Accrued interest receivable	4,066	4,000
Derivative assets	747	693
Financial liabilities [Abstract]
Demand, savings, and insured money market accounts	1,403,637	1,312,237
Time deposits	140,614	144,106
Securities sold under agreements to repurchase	15,215	27,606
FHLBNY term advances	9,065	9,093
Accrued interest payable	172	210
Derivative liabilities	812	761
Recurring | Estimated Fair Value
Financial Assets [Abstract]
Cash and due from financial institutions	26,275	28,205
Interest-bearing deposits in other financial institutions	99,410	45,957
Trading assets	826	774
Securities available for sale	302,581	303,402
Securities held to maturity	3,912	4,912
Loans, net	1,229,871	1,205,814
Loans held for sale	20	412
Accrued interest receivable	4,066	4,000
Derivative assets	747	693
Financial liabilities [Abstract]
Demand, savings, and insured money market accounts	1,403,637	1,312,237
Time deposits	140,934	144,460
Securities sold under agreements to repurchase	15,398	27,880
FHLBNY term advances	9,138	9,189
Accrued interest payable	172	210
Derivative liabilities	$ 812	$ 761

GOODWILL AND INTANGIBLE ASSET47

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Goodwill [Roll Forward]
Beginning of year	$ 21,824	$ 21,824	$ 21,824
Acquired goodwill	0	0
Ending balance	21,824	21,824	21,824
Finite-lived intangible assets, net [Abstract]
Balance Acquired	11,608		11,608
Accumulated Amortization	8,889		8,663
Aggregate amortization expense	226	$ 258
Finite-lived intangible assets, future amortization expense [Abstract]
2,017	634
2,018	734
2,019	609
2,020	484
2,021	258
Total	2,719
Core Deposit Intangibles [Member]
Finite-lived intangible assets, net [Abstract]
Balance Acquired	5,975		5,975
Accumulated Amortization	4,827		4,689
Other Customer Relationship Intangibles [Member]
Finite-lived intangible assets, net [Abstract]
Balance Acquired	5,633		5,633
Accumulated Amortization	$ 4,062		$ 3,974

SECURITIES SOLD UNDER AGREEME48

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		$ 38,276
Excess collateral held	$ (6,572)	(10,670)
Gross amount of recognized liabilities for repurchase agreements	15,215	27,606
Obligations of U.S. Government and U.S. Government sponsored enterprises
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		1,276
Mortgage-backed securities, residential
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase	21,787	37,000
Overnight and Continuous
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		13,092
Excess collateral held	(2,882)	(5,486)
Gross amount of recognized liabilities for repurchase agreements	5,215	7,606
Overnight and Continuous | Obligations of U.S. Government and U.S. Government sponsored enterprises
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		0
Overnight and Continuous | Mortgage-backed securities, residential
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase	8,097	13,092
Up to 1 Year
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		10,940
Excess collateral held	0	(940)
Gross amount of recognized liabilities for repurchase agreements	0	10,000
Up to 1 Year | Obligations of U.S. Government and U.S. Government sponsored enterprises
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		1,276
Up to 1 Year | Mortgage-backed securities, residential
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase	0	9,664
1 - 3 Years
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		14,244
Excess collateral held	(3,690)	(4,244)
Gross amount of recognized liabilities for repurchase agreements	10,000	10,000
1 - 3 Years | Obligations of U.S. Government and U.S. Government sponsored enterprises
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		0
1 - 3 Years | Mortgage-backed securities, residential
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase	13,690	14,244
3 Years
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		0
Excess collateral held	0	0
Gross amount of recognized liabilities for repurchase agreements	0	0
3 Years | Obligations of U.S. Government and U.S. Government sponsored enterprises
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase		0
3 Years | Mortgage-backed securities, residential
Summary of securities sold under agreements to repurchase [Abstract]
Securities sold under agreements to repurchase	$ 0	$ 0

ACCUMULATED OTHER COMPREHENSI49

ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Changes in Accumulated Other Comprehensive Income or Loss by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward]
Balances	$ 143,748	$ 137,242
Total other comprehensive income	1,998	1,604
Balances	148,257	141,046
Accumulated Other Comprehensive Income (Loss) [Member]
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward]
Balances	(10,754)	(10,942)
Other comprehensive income before reclassification	1,977	1,936
Amounts reclassified from accumulated other comprehensive income	21	(332)
Total other comprehensive income	1,998	1,604
Balances	(8,756)	(9,338)
Unrealized Gains and Losses on Securities Available for Sale [Member]
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward]
Balances	(4,356)	210
Other comprehensive income before reclassification	1,977	1,936
Amounts reclassified from accumulated other comprehensive income	0	(565)
Total other comprehensive income	1,977	1,371
Balances	(2,379)	1,581
Defined Benefit and Other Benefit Plans [Member]
Changes in accumulated other comprehensive income or loss by component, net of tax [Roll Forward]
Balances	(6,398)	(11,152)
Other comprehensive income before reclassification	0	0
Amounts reclassified from accumulated other comprehensive income	21	233
Total other comprehensive income	21	233
Balances	$ (6,377)	$ (10,919)

ACCUMULATED OTHER COMPREHENSI50

ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Realized gains on securities available for sale	$ 0	$ 908
Pension and other employee benefits	1,218	1,675
Tax effect	1,277	1,316
Net of tax	2,979	2,707
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net of tax	21	(332)
Unrealized Gains and Losses on Securities Available for Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Realized gains on securities available for sale	0	(908)
Tax effect	0	343
Net of tax	0	(565)
Defined Benefit and Other Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Tax effect	(12)	(141)
Net of tax	21	233
Prior Service Costs [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Pension and other employee benefits	(55)	(22)
Actuarial Losses [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Pension and other employee benefits	$ 88	$ 396

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 23, 2016
Commitments to Make Loans [Member] | Fixed Rate [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet contractual amounts of financial instruments	$ 35,706	$ 38,246
Commitments to Make Loans [Member] | Variable Rate [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet contractual amounts of financial instruments	29,629	33,189
Unused Line of Credit [Member] | Fixed Rate [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet contractual amounts of financial instruments	913	610
Unused Line of Credit [Member] | Variable Rate [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet contractual amounts of financial instruments	209,879	208,124
Standby Letters of Credit [Member] | Fixed Rate [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet contractual amounts of financial instruments	0	0
Standby Letters of Credit [Member] | Variable Rate [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet contractual amounts of financial instruments	$ 14,156	$ 14,241
Pending Litigation [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of possible loss, not accrued				$ 4,000
Legal reserve			$ 1,200

COMPONENTS OF QUARTERLY AND Y52

COMPONENTS OF QUARTERLY AND YEAR TO DATE NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Qualified Pension Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost, benefits earned during the period	$ 0	$ 296
Interest cost on projected benefit obligation	403	470
Expected return on plan assets	(785)	(755)
Amortization of unrecognized transition obligation	0	0
Amortization of unrecognized prior service cost	0	2
Amortization of unrecognized net loss	58	384
Net periodic pension cost	(324)	397
Supplemental Pension Plan [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost, benefits earned during the period	0	11
Interest cost on projected benefit obligation	12	13
Expected return on plan assets	0	0
Amortization of unrecognized prior service cost	0	0
Amortization of unrecognized net loss	1	6
Net periodic pension cost	13	30
Postretirement Plan, Medical and Life
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost, benefits earned during the period	0	12
Interest cost on projected benefit obligation	4	17
Expected return on plan assets	0	0
Amortization of unrecognized prior service cost	(55)	(24)
Amortization of unrecognized net loss	29	6
Net periodic pension cost	$ (22)	$ 11

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segment	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Number of primary business segments | segment	2
Reportable segments and reconciliation to consolidated results [Abstract]
Interest and dividend income	$ 14,314	$ 13,949
Interest expense	820	924
Net interest income	13,494	13,025
Provision for loan losses	1,040	595
Net interest income after provision for loan losses	12,454	12,430
Other non-interest income	4,847	5,601
Other non-interest expenses	13,045	14,008
Income before income tax expense	4,256	4,023
Income tax expense (benefit)	1,277	1,316
Net income	2,979	2,707
Segment assets	1,736,100	1,643,226	$ 1,657,179
Other Expenses	13,045	14,008
Holding Company, CFS and CRM
Reportable segments and reconciliation to consolidated results [Abstract]
Interest and dividend income	3	0
Interest expense	0	0
Net interest income	3	0
Provision for loan losses	0	0
Net interest income after provision for loan losses	3	0
Other non-interest income	133	173
Income before income tax expense	(160)	(194)
Income tax expense (benefit)	(76)	(89)
Net income	(84)	(105)
Segment assets	2,773	1,316
Other Expenses	296	367
Operating Segments [Member] | Core Banking
Reportable segments and reconciliation to consolidated results [Abstract]
Interest and dividend income	14,311	13,949
Interest expense	820	924
Net interest income	13,491	13,025
Provision for loan losses	1,040	595
Net interest income after provision for loan losses	12,451	12,430
Other non-interest income	2,605	3,416
Income before income tax expense	3,612	3,594
Income tax expense (benefit)	1,048	1,170
Net income	2,564	2,424
Segment assets	1,729,057	1,637,242
Other Expenses	11,444	12,252
Operating Segments [Member] | WMG
Reportable segments and reconciliation to consolidated results [Abstract]
Interest and dividend income	0	0
Interest expense	0	0
Net interest income	0	0
Provision for loan losses	0	0
Net interest income after provision for loan losses	0	0
Other non-interest income	2,109	2,012
Income before income tax expense	804	623
Income tax expense (benefit)	305	235
Net income	499	388
Segment assets	4,270	4,668
Other Expenses	$ 1,305	$ 1,389

STOCK COMPENSATION (Details)

STOCK COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Restricted Stock [Member]
Shares [Roll Forward]
Nonvested, Beginning Balance (shares)	23,794		23,794
Granted (shares)			0
Vested (shares)			(415)
Forfeited or cancelled (shares)			(1,139)
Nonvested, Ending Balance (shares)			22,240
Weighted-Average Grant Date Fair Value [Roll Forward]
Nonvested, Beginning Balance (in dollars per share)	$ 29.90		$ 29.90
Granted (in dollars per share)			0
Vested (in dollars per share)			26.59
Forfeitures or cancelled (in dollars per share)			29.97
Nonvested, Ending Balance (in dollars per share)			$ 29.96
Total unrecognized compensation cost related to nonvested shares granted under the Plan			$ 607
Weighted-average period for recognition			3 years 6 months 29 days
Total fair value of shares vested			$ 16	$ 11
President and Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Service period for comparable group used to determine share based payment awards			12 months
Directors and President and Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Number of treasury shares reissued to fund stock compensation (in shares)	7,880	9,532
Expenses related to stock based compensation recognized			$ 79	$ 67