Cortland Bancorp (CLDB) 10-Q 8 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 01, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	CORTLAND BANCORP INC
Entity Central Index Key	0000774569
Document Type	10-Q
Trading Symbol	CLDB
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		4,378,723
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-38827
Entity Tax Identification Number	341451118
Entity Address, Address Line One	194 West Main Street
Entity Address, City or Town	Cortland
Entity Address, State or Province	Ohio
Entity Address, Postal Zip Code	44410
City Area Code	330
Local Phone Number	637-8040

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 7,026	$ 11,333
Interest-earning deposits	17,213	8,359
Total cash and cash equivalents	24,239	19,692
Investment securities available-for-sale (Note 3)	136,236	136,923
Regulatory stock (Note 3)	2,835	2,581
Loans held for sale	5,676	1,040
Total loans (Note 4)	477,946	514,392
Less allowance for loan losses (Note 4)	(4,485)	(4,198)
Net loans	473,461	510,194
Premises and equipment	11,225	10,202
Bank-owned life insurance	15,518	15,711
Other assets	21,493	18,323
Total assets	690,683	714,666
LIABILITIES
Noninterest-bearing deposits	144,578	136,886
Interest-bearing deposits	432,336	467,533
Total deposits	576,914	604,419
Securities sold under agreements to repurchase (Note 13)	1,675	2,206
Federal Home Loan Bank advances - short term	6,000	12,000
Federal Home Loan Bank advances - long term	16,000	16,000
Subordinated debt (Note 7)	5,155	5,155
Other liabilities	13,775	9,968
Total liabilities	619,519	649,748
SHAREHOLDERS’ EQUITY
Common stock - $5.00 stated value - authorized 20,000,000 shares; issued 4,728,267 shares in 2019 and 2018; outstanding shares, 4,378,723 in 2019 and 4,349,624 in 2018	23,641	23,641
Additional paid-in capital	21,027	20,984
Retained earnings	33,345	31,089
Accumulated other comprehensive loss (Note 10)	(139)	(3,656)
Treasury stock, at cost, 349,544 shares in 2019 and 378,643 in 2018	(6,710)	(7,140)
Total shareholders’ equity	71,164	64,918
Total liabilities and shareholders’ equity	$ 690,683	$ 714,666

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Common stock, shares authorized	20,000,000	20,000,000
Common stock, stated value	$ 5	$ 5
Common stock, shares issued	4,728,267	4,728,267
Common stock, shares outstanding	4,378,723	4,349,624
Treasury stock, shares	349,544	378,643

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$ 6,410	$ 5,739	$ 12,993	$ 11,327
Interest and dividends on investment securities:
Taxable interest	498	539	1,058	1,031
Nontaxable interest	368	356	721	785
Dividends	38	40	74	74
Other interest income	87	53	145	81
Total interest and dividend income	7,401	6,727	14,991	13,298
INTEREST EXPENSE
Deposits	1,208	850	2,369	1,639
Securities sold under agreements to repurchase	2	2	3	3
Federal Home Loan Bank advances - short term	42	54	111	145
Federal Home Loan Bank advances - long term	94	66	175	124
Subordinated debt	53	48	107	88
Total interest expense	1,399	1,020	2,765	1,999
Net interest income	6,002	5,707	12,226	11,299
PROVISION FOR LOAN LOSSES	180	75	355	575
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	5,822	5,632	11,871	10,724
NON-INTEREST INCOME
Fees for customer services	560	584	1,084	1,126
Investment securities available-for-sale losses, net	(44)	(41)	(44)	(21)
Mortgage banking gains, net	344	261	681	499
Earnings on bank-owned life insurance	79	1,631	210	1,708
Other non-interest income	113	142	325	277
Total non-interest income	1,052	2,577	2,256	3,589
NON-INTEREST EXPENSES
Salaries and employee benefits	3,070	2,617	5,814	5,067
Occupancy and equipment	582	550	1,155	1,147
State and local taxes	131	125	259	250
FDIC insurance	77	44	115	88
Professional fees	262	209	468	398
Advertising and marketing	103	89	198	163
Data processing fees	83	64	143	127
Other operating expenses	1,031	887	1,939	1,671
Total non-interest expenses	5,339	4,585	10,091	8,911
INCOME BEFORE FEDERAL INCOME TAX EXPENSE	1,535	3,624	4,036	5,402
Federal income tax expense	207	322	603	563
NET INCOME	$ 1,328	$ 3,302	$ 3,433	$ 4,839
EARNINGS PER SHARE BASIC AND DILUTED	$ 0.30	$ 0.75	$ 0.79	$ 1.10
CASH DIVIDENDS DECLARED PER SHARE	$ 0.11	$ 0.11	$ 0.27	$ 0.22

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 1,328	$ 3,302	$ 3,433	$ 4,839
Securities available for sale:
Unrealized holding gains (losses) on available-for-sale securities	2,021	(83)	4,390	(3,049)
Tax effect	(424)	16	(922)	641
Reclassification adjustment for net losses realized in net income	44	41	44	21
Tax effect	(9)	(8)	(9)	(4)
Total securities available-for-sale	1,632	(34)	3,503	(2,391)
Change in post-retirement obligations	7	111	14	103
Total other comprehensive income (loss)	1,639	77	3,517	(2,288)
Total comprehensive income	$ 2,967	$ 3,379	$ 6,950	$ 2,551

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance at Dec. 31, 2017		$ 23,641	$ 20,928	$ 24,403	$ (1,825)	$ (5,517)
Net income	$ 4,839			4,839
Cash dividend declared				(972)
Other comprehensive income (loss)	(2,288)				(2,288)
Treasury shares purchased (5,352 shares)						(1,493)
Equity compensation			(50)			158
Ending balance at Jun. 30, 2018	61,824		20,878	28,270	(4,113)	(6,852)
Beginning balance at Mar. 31, 2018		23,641	20,893	25,454	(4,190)	(5,671)
Net income	3,302			3,302
Cash dividend declared				(486)
Other comprehensive income (loss)	77				77
Treasury shares purchased (5,352 shares)						(1,270)
Equity compensation			(15)			89
Ending balance at Jun. 30, 2018	61,824		20,878	28,270	(4,113)	(6,852)
Beginning balance at Dec. 31, 2018	64,918	23,641	20,984	31,089	(3,656)	(7,140)
Net income	3,433			3,433
Cash dividend declared				(1,177)
Other comprehensive income (loss)	3,517				3,517
Treasury shares reissued (2,770 shares)			11			49
Treasury shares purchased (5,352 shares)						(122)
Equity compensation			32			503
Ending balance at Jun. 30, 2019	71,164		21,027	33,345	(139)	(6,710)
Beginning balance at Mar. 31, 2019		$ 23,641	20,982	32,498	(1,778)	(7,024)
Net income	1,328			1,328
Cash dividend declared				(481)
Other comprehensive income (loss)	1,639				1,639
Treasury shares purchased (5,352 shares)						(122)
Equity compensation			45			436
Ending balance at Jun. 30, 2019	$ 71,164		$ 21,027	$ 33,345	$ (139)	$ (6,710)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (Unaudited) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash dividend declared per share	$ 0.11	$ 0.11	$ 0.27	$ 0.22
Retained Earnings
Cash dividend declared per share	$ 0.11	$ 0.11	$ 0.27	$ 0.22
Treasury Stock
Treasury shares purchased shares	5,352	59,693		70,181
Treasury shares reissued shares			2,770
Additional Paid-in Capital
Treasury shares reissued shares			2,770

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Net cash flow from operating activities
Net cash flow from operating activities	$ 801	$ 5,345
Cash flow from investing activities
Purchases of available-for-sale securities	(14,479)	(13,022)
Proceeds from sale of available-for-sale securities	13,622	21,418
Proceeds from call, maturity and principal payments on available-for-sale securities	5,274	6,056
Purchases of regulatory stock	(254)
Net decrease in loans made to customers	36,378	19,984
Proceeds from bank-owned life insurance	403	3,808
Contributions to partnership funds	(477)	(656)
Purchases of premises and equipment	(1,446)	(519)
Net cash flow from investing activities	39,021	37,069
Cash deficit from financing activities
Net decrease in deposit accounts	(27,505)	(28,028)
Net change in securities sold under agreements to repurchase	(531)	(1,069)
Net change in Federal Home Loan Bank advances - short term	(6,000)	(21,000)
Repayments of Federal Home Loan Bank advances - long term	(4,000)	(4,000)
Proceeds from Federal Home Loan Bank advances - long term	4,000	6,000
Dividends paid	(1,177)	(972)
Treasury shares purchased	(122)	(1,493)
Treasury shares reissued	60
Net cash deficit from financing activities	(35,275)	(50,562)
Net change in cash and cash equivalents	4,547	(8,148)
Cash and cash equivalents
Beginning of period	19,692	19,125
End of period	24,239	10,977
Cash paid during the period for:
Income taxes		400
Interest	$ 2,573	$ 2,022

Basis of Presentation and Recla

Basis of Presentation and Reclassifications	6 Months Ended
	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation and Reclassifications	The accompanying unaudited consolidated financial statements of Cortland Bancorp (the Company) and the Cortland Savings and Banking Company (the Bank) have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. These interim unaudited consolidated financial statements should be read in conjunction with our annual audited financial statements as of December 31, 2018, included in our Form 10-K for the year ended December 31, 2018, filed with the United States Securities and Exchange Commission. The accompanying Consolidated Balance Sheets at December 31, 2018 have been derived from the audited Consolidated Balance Sheets but do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Certain items contained in the 2018 financial statements have been reclassified to conform to the presentation for 2019. Such reclassifications had no effect on the net results of operations or shareholders’ equity.

Authoritative Accounting Guidan

Authoritative Accounting Guidance	6 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Authoritative Accounting Guidance	2.) Authoritative Accounting Guidance: In February 2016, the FASB issued ASU (Accounting Standard Update) 2016-02, Leases (Topic 842) Leases (Topic 842) – Targeted Improvements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. This Update did not have a significant impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. This Update did not have a significant impact on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). In October 2018, the FASB issued ASU 2018-16 , Derivatives and Hedging (Topic 815) In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, w In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections, Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. Disclosure Update and Simplification Investment Company Reporting Modernization

Investment Securities

Investment Securities	6 Months Ended
	Jun. 30, 2019
Investments Debt And Equity Securities [Abstract]
Investment Securities	3.) Investment Securities: Investments in debt securities are classified as held-to-maturity, available-for-sale or trading. Securities classified as held-to-maturity are those that management has the positive intent and ability to hold to maturity. Securities classified as available-for-sale are those that could be sold for liquidity, investment management, or similar reasons, even though management has no present intentions to do so. Securities classified as trading are those that management has bought principally for the purpose of selling in the near term. The Company currently has no securities classified as held-to-maturity or trading. Available-for-sale securities are carried at fair value with unrealized gains and losses recorded as a separate component of shareholders’ equity, net of tax. Realized gains or losses on dispositions are based on net proceeds and the adjusted carrying amount of securities sold, using the specific identification method. Interest income includes amortization of purchase premium or discount and is amortized on the level-yield method without anticipating payments, except for U.S. Government mortgage-backed and related securities where twelve months of historical prepayments are taken into consideration. The regulatory stock is carried at cost (its redeemable value) and the Company is required to hold such investments as a condition of membership in order to transact business with the Federal Home Loan Bank (FHLB) of Cincinnati and the Federal Reserve Bank (FRB). The stock is bought from and sold to the correspondent institutions based upon its par value. The stock cannot be traded or sold in any market and as such is classified as restricted stock, carried at cost (its redeemable value) and evaluated by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB and FRB as compared to the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB and FRB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB and FRB and (d) the liquidity position of the FHLB and FRB. The Company does not consider these investments to be other-than-temporarily impaired at June 30, 2019. Securities are evaluated periodically to determine whether a decline in value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, along with the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline in value is permanent but indicates that the prospect for a near-term recovery of value is not necessarily favorable and that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Unrealized losses on available-for-sale investments have not been recognized into income. However, once a decline in value is determined to be other-than-temporary, the credit related other-than-temporary impairment (OTTI) is recognized in earnings while the non-credit related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). The following table is a summary of investment securities available-for-sale and regulatory stock: (Amounts in thousands) June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 3,347 $ 1 $ 4 $ 3,344 Obligations of states and political subdivisions 66,057 911 100 66,868 U.S. Government-sponsored mortgage-backed securities 49,421 21 1,014 48,428 U.S. Government-sponsored collateralized mortgage obligations 10,316 95 60 10,351 U.S. Government-guaranteed small business administration pools 7,327 — 82 7,245 Total investment securities available-for-sale $ 136,468 $ 1,028 $ 1,260 $ 136,236 Federal Home Loan Bank (FHLB) stock $ 2,609 $ — $ — $ 2,609 Federal Reserve Bank (FRB) stock 226 — — 226 Total regulatory stock $ 2,835 $ — $ — $ 2,835 (Amounts in thousands) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 9,242 $ 11 $ 251 $ 9,002 Obligations of states and political subdivisions 53,187 26 1,555 51,658 U.S. Government-sponsored mortgage-backed securities 59,070 — 2,483 56,587 U.S. Government-sponsored collateralized mortgage obligations 12,112 41 177 11,976 U.S. Government-guaranteed small business administration pools 7,978 — 278 7,700 Total investment securities available-for-sale $ 141,589 $ 78 $ 4,744 $ 136,923 Federal Home Loan Bank (FHLB) stock $ 2,355 $ — $ — $ 2,355 Federal Reserve Bank (FRB) stock 226 — — 226 Total regulatory stock $ 2,581 $ — $ — $ 2,581 The amortized cost and fair value of debt securities at June 30, 2019, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 482 490 Due after five years through ten years 5,705 5,687 Due after ten years 70,544 71,280 Total 76,731 77,457 U.S. Government-sponsored mortgage-backed and related securities 59,737 58,779 Total investment securities available-for-sale $ 136,468 $ 136,236 The table below sets forth the proceeds and gains or losses realized on available for sale securities sold or called for the periods presented: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Proceeds on securities sold $ 13,622 $ 1,577 $ 13,622 $ 21,418 Gross realized gains 82 — 82 123 Gross realized losses 126 41 126 144 Investment securities with a carrying value of approximately $60.3 million at June 30, 2019 and $55.1 million at December 31, 2018 were pledged to secure deposits and for other purposes. The remaining securities provide an adequate level of liquidity. The following is a summary of the fair value of available-for-sale securities with unrealized losses and an aging of those unrealized losses at June 30, 2019: (Amounts in thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government agencies and corporations $ — $ — $ 2,996 $ 4 $ 2,996 $ 4 Obligations of states and political subdivisions 4,502 7 8,351 93 12,853 100 U.S. Government-sponsored mortgage-backed securities — — 46,806 1,014 46,806 1,014 U.S. Government-sponsored collateralized mortgage obligations — — 4,341 60 4,341 60 U.S. Government-guaranteed small business administration pools — — 7,245 82 7,245 82 Total $ 4,502 $ 7 $ 69,739 $ 1,253 $ 74,241 $ 1,260 The above table comprises 53 investment securities where the fair value is less than the related amortized cost. The following is a summary of the fair value of available-for-sale securities with unrealized losses and an aging of those unrealized losses at December 31, 2018: (Amounts in thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government agencies and corporations $ 3,280 $ 6 $ 2,755 $ 245 $ 6,035 $ 251 Obligations of states and political subdivisions 23,616 567 24,607 988 48,223 1,555 U.S. Government-sponsored mortgage-backed securities 1,598 18 54,989 2,465 56,587 2,483 U.S. Government-sponsored collateralized mortgage obligations — — 5,350 177 5,350 177 U.S. Government-guaranteed small business administration pools — — 7,700 278 7,700 278 Total $ 28,494 $ 591 $ 95,401 $ 4,153 $ 123,895 $ 4,744 The above table comprises 121 investment securities where the fair value is less than the related amortized cost. The unrealized losses at June 30, 2019 on the Company’s investments were caused by changes in market rates and related spreads. It is expected that the securities would not be settled at less than the amortized cost of the Company’s investment because the decline in fair value is attributable to changes in interest rates and relative spreads and not credit quality. Also, the Company does not intend to sell those investments and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of its amortized cost basis less any current period credit loss. The Company does not consider these investments to be other-than-temporarily impaired at June 30, 2019.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Loans and Allowance for Loan Losses	4.) Loans and Allowance for Loan Losses: The Company, through the Bank, grants residential, consumer and commercial loans to customers located primarily in Northeastern Ohio and Western Pennsylvania. The following represents the composition of the loan portfolio for the period ending: (Amounts in thousands) June 30, 2019 December 31, 2018 Balance % Balance % Commercial $ 71,883 15.1 $ 112,440 21.9 Commercial real estate 287,300 60.1 303,804 59.0 Residential real estate 89,897 18.8 69,845 13.6 Consumer - home equity 25,391 5.3 25,076 4.9 Consumer - other 3,475 0.7 3,227 0.6 Total loans $ 477,946 $ 514,392 Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented loans in the portfolio by product type. Loans are segmented into the following pools: commercial loans, commercial real estate loans, residential real estate loans and consumer loans. The pools of commercial real estate loans and commercial loans are also broken down further by industry sectors when analyzing the related pools. Using the largest concentrations as the qualifier, these industry sectors include non-residential buildings; skilled nursing and nursing care; residential real estate lessors, agents and managers; hotel and motels, and trucking. The Company also sub-segments the consumer loan portfolio into the following two classes: home equity loans and other consumer loans. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. These historical loss percentages are calculated over multiple periods for all portfolio segments. Management evaluates these results and utilizes the most reflective period in the calculation. Certain qualitative factors are then added to the historical allocation percentage to get the adjusted factor. These factors include, but are not limited to, the following: Factor Considered: Risk Trend: Levels of and trends in charge-offs, classifications and non-accruals Decreasing Trends in volume and terms Stable Changes in lending policies and procedures Stable Experience, depth and ability of management, including loan review function Stable Economic trends, including valuation of underlying collateral Stable Concentrations of credit Decreasing The following factors are analyzed and applied to loans internally graded with higher credit risk in addition to the above factors for non-classified loans: Factor Considered: Risk Trend: Levels and trends in classification Stable Declining trends in financial performance Stable Structure and lack of performance measures Stable Migration between risk categories Stable The provision charged to operations can be allocated to a loan classification either as a positive or negative value as a result of any material changes to: net charge-offs or recovery which influence the historical allocation percentage, qualitative risk factors or loan balances. The following is an analysis of changes in the allowance for loan losses for the periods ended: Three Months Ended (Amounts in thousands) June 30, 2019 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,578 $ 2,201 $ 320 $ 114 $ 127 $ 4,340 Loan charge-offs — — — — (51 ) (51 ) Recoveries — — — 1 15 16 Net loan recoveries (charge-offs) — — — 1 (36 ) (35 ) Provision charged to operations 139 (36 ) 48 (17 ) 46 180 Balance at end of period $ 1,717 $ 2,165 $ 368 $ 98 $ 137 $ 4,485 (Amounts in thousands) June 30, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,334 $ 2,290 $ 93 $ 67 $ 100 $ 3,884 Loan charge-offs — — — — (27 ) (27 ) Recoveries — 150 1 1 11 163 Net loan recoveries (charge-offs) — 150 1 1 (16 ) 136 Provision charged to operations 60 17 (14 ) (2 ) 14 75 Balance at end of period $ 1,394 $ 2,457 $ 80 $ 66 $ 98 $ 4,095 Six Months Ended (Amounts in thousands) June 30, 2019 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,232 $ 2,414 $ 314 $ 115 $ 123 $ 4,198 Loan charge-offs — — (29 ) — (109 ) (138 ) Recoveries 28 — — 1 41 70 Net loan recoveries (charge-offs) 28 — (29 ) 1 (68 ) (68 ) Provision charged to operations 457 (249 ) 83 (18 ) 82 355 Balance at end of period $ 1,717 $ 2,165 $ 368 $ 98 $ 137 $ 4,485 (Amounts in thousands) June 30, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,591 $ 2,702 $ 117 $ 70 $ 98 $ 4,578 Loan charge-offs (1,163 ) — — — (77 ) (1,240 ) Recoveries — 150 1 4 27 182 Net loan recoveries (charge-offs) (1,163 ) 150 1 4 (50 ) (1,058 ) Provision charged to operations 966 (395 ) (38 ) (8 ) 50 575 Balance at end of period $ 1,394 $ 2,457 $ 80 $ 66 $ 98 $ 4,095 The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the consolidated balance sheet date. The following tables present a full breakdown by portfolio classification of the allowance for loan losses and the recorded investment in loans at June 30, 2019 and December 31, 2018: (Amounts in thousands) June 30, 2019 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 579 $ — $ — $ — $ — $ 579 Collectively evaluated for impairment 1,138 2,165 368 98 137 3,906 Total ending allowance balance $ 1,717 $ 2,165 $ 368 $ 98 $ 137 $ 4,485 Loan Portfolio: Individually evaluated for impairment $ 5,052 $ 3,186 $ — $ — $ — $ 8,238 Collectively evaluated for impairment 66,831 284,114 89,897 25,391 3,475 469,708 Total ending loans balance $ 71,883 $ 287,300 $ 89,897 $ 25,391 $ 3,475 $ 477,946 (Amounts in thousands) December 31, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,232 2,414 314 115 123 4,198 Total ending allowance balance $ 1,232 $ 2,414 $ 314 $ 115 $ 123 $ 4,198 Loan Portfolio: Individually evaluated for impairment $ 5,364 $ 4,340 $ — $ — $ — $ 9,704 Collectively evaluated for impairment 107,076 299,464 69,845 25,076 3,227 504,688 Total ending loans balance $ 112,440 $ 303,804 $ 69,845 $ 25,076 $ 3,227 $ 514,392 The decrease in commercial loan balances from year-end was due in part to 60-day or less term commercial loans for a total of $40.9 million that closed in December 2018 and were fully secured by segregated deposit accounts with the Bank. The loans matured in the first quarter of 2019. The commercial charge-off in 2018 related to loans that were restructured with no principal forgiveness with a new borrowing relationship, but with a substantial concession in interest rate. The below market rate triggered recognition of a charge-off equivalent to the difference in present value of loan payments discounted at the market rate of interest. The charged off amount of $1.1 million is recorded as a loan discount. As loan payments are made, interest will be recognized at the market rate versus the negotiated rate via the amortization of the discount over the various lives of the loans. There was $625,000 in specific reserve previously allocated to these loans at December 31, 2017. The decrease in commercial real estate and the majority of the increase in residential real estate is due to reclassification of loans between these categories in 2019. The allowance for commercial loans includes an amount for a single loan impairment, otherwise the provision decreased modestly. The decrease in the provision for commercial real estate loans is due mainly to a decrease in the concentration of credit factor. The recent segmentation of the commercial real estate loan portfolio into its five largest concentrations has resulted in lower allocations to those segments. The residential real estate, consumer-home equity and other household provisions remained fairly constant. The amount of net charge-offs also impacts the provision charged to operations for any category of loans. Charge-offs affect the historical rate applied to each category, and the amount needed to replenish the amount charged-off, which impacted home equity and consumer loans as well as commercial real estate loans. The following tables represent credit exposures by internally assigned grades for June 30, 2019 and December 31, 2018. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk grading system is based on experiences with similarly graded loans. The Company’s internally assigned grades are as follows: • Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. Within this category, there are grades of exceptional, quality, acceptable and pass monitor. • Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. • Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset but with the severity which makes collection in full highly questionable and improbable, based on existing circumstances. • Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. This rating does not mean that the assets have no recovery or salvage value but rather that the assets should be charged off now, even though partial or full recovery may be possible in the future. The following table is a summary of credit quality indicators by internally assigned grades as of June 30, 2019 and December 31, 2018: (Amounts in thousands) Commercial Commercial real estate June 30, 2019 Pass $ 54,777 $ 257,781 Special Mention 6,370 25,687 Substandard 10,736 3,832 Doubtful — — Ending Balance $ 71,883 $ 287,300 (Amounts in thousands) Commercial Commercial real estate December 31, 2018 Pass $ 94,316 $ 271,370 Special Mention 6,914 25,199 Substandard 11,210 7,235 Doubtful — — Ending Balance $ 112,440 $ 303,804 The Company evaluates the classification of consumer, home equity and residential loans primarily on a pooled basis. If the Company becomes aware that adverse or distressed conditions exist that may affect a particular loan, the loan is downgraded following the above definitions of special mention and substandard. Nonaccrual loans in these categories are evaluated for charge off or charge down, and the remaining balance has the same allowance factor as pooled loans. The following table is a summary of consumer credit exposure as of June 30, 2019 and December 31, 2018: (Amounts in thousands) Residential real estate Consumer Consumer - other June 30, 2019 Performing $ 89,638 $ 25,265 $ 3,475 Nonperforming 259 126 — Total $ 89,897 $ 25,391 $ 3,475 (Amounts in thousands) Residential real estate Consumer Consumer - other December 31, 2018 Performing $ 69,535 $ 24,956 $ 3,227 Nonperforming 310 120 — Total $ 69,845 $ 25,076 $ 3,227 Loans are considered to be nonperforming when they become 90 days past due or on nonaccrual status, though the Company may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed in non-accrual status, previously accrued but unpaid interest is deducted from interest income. Loans in foreclosure are considered nonperforming. The following table is a summary of classes of loans on non-accrual status as of June 30, 2019 and December 31, 2018: (Amounts in thousands) June 30, 2019 December 31, 2018 Commercial $ 1,468 $ 1,291 Commercial real estate 591 512 Residential real estate 259 310 Consumer: Consumer - home equity 126 120 Consumer - other — — Total $ 2,444 $ 2,233 Troubled Debt Restructuring Nonperforming loans also include certain loans that have been modified in troubled debt restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. There were no loans modified as TDR’s during the three and six month periods ended June 30, 2019. The following presents, by class, information related to loans modified in a TDR during the periods ending June 30, 2018. (Dollar amounts in thousands) Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Number of contracts Pre- modification recorded investment Post- modification recorded investment Increase in the allowance Number of contracts Pre- modification recorded investment Post- modification recorded investment Increase in the allowance Commercial — $ — $ — $ — 7 $ 5,373 $ 4,210 $ — Commercial real estate — — — — — — — — Total restructured loans — $ — $ — $ — $ 7 $ 5,373 $ 4,210 $ — Subsequently defaulted — — — — The seven commercial loans were all to one new borrowing relationship. The loans were restructured with no principal forgiveness, but with a substantial concession in interest rate. The below market rate triggered recognition of a charge-off equivalent to the difference in present value of loan payments discounted at the market rate of interest. The charged off amount of $1.1 million is recorded as loan discount. As loan payments are made, interest will be recognized at the market rate versus the negotiated rate via the amortization of the discount over the various lives of the loans. The following table is an aging analysis of the recorded investment of past due loans as of June 30, 2019 and December 31, 2018: (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Current Total Loans Recorded Investment 90 Days and Accruing June 30, 2019 Commercial $ 65 $ 983 $ 485 $ 1,533 $ 70,350 $ 71,883 $ — Commercial real estate — — 262 262 287,038 287,300 — Residential real estate 475 — 243 718 89,179 89,897 — Consumer: Consumer - home equity 25 — 126 151 25,240 25,391 — Consumer - other 10 — — 10 3,465 3,475 — Total $ 575 $ 983 $ 1,116 $ 2,674 $ 475,272 $ 477,946 $ — (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Current Total Loans Recorded Investment 90 Days and Accruing December 31, 2018 Commercial $ 14 $ — $ 1,291 $ 1,305 $ 111,135 $ 112,440 $ — Commercial real estate — — 167 167 303,637 303,804 — Residential real estate 36 182 257 475 69,370 69,845 — Consumer: Consumer - home equity — 141 25 166 24,910 25,076 — Consumer - other 17 — — 17 3,210 3,227 — Total $ 67 $ 323 $ 1,740 $ 2,130 $ 512,262 $ 514,392 $ — An impaired loan is a loan on which, based on current information and events, it is probable that a creditor will be unable to collect all amounts due (including both interest and principal) according to the contractual terms of the loan agreement. However, an insignificant delay or insignificant shortfall in amount of payments on a loan does not indicate that the loan is impaired. When a loan is determined to be impaired, impairment should be measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate. However, as a practical expedient, the Company will measure impairment based on a loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. The following are the criteria for selecting individual loans / relationships for impairment analysis. Non-homogenous loans which meet the criteria below are evaluated quarterly. • All borrowers whose loans are classified doubtful by examiners and internal loan review • All loans on non-accrual status • Any loan in foreclosure • Any loan with a specific allowance • Any loan determined to be collateral dependent for repayment • Loans classified as troubled debt restructuring Commercial loans and commercial real estate loans evaluated for impairment are excluded from the general pool of loans in the ALLL calculation regardless if a specific reserve was determined. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. The following table presents the recorded investment and unpaid principal balances for impaired loans, excluding homogenous loans for which impaired analyses are not necessarily performed, with the associated allowance amount, if applicable, at June 30, 2019 and December 31, 2018. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the three and six months ended June 30, 2019 and 2018. (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance June 30, 2019 With no related allowance recorded: Commercial $ 4,068 $ 5,047 $ — Commercial real estate 3,186 3,186 — With an allowance recorded: Commercial 984 984 579 Commercial real estate — — — Total: Commercial $ 5,052 $ 6,031 $ 579 Commercial real estate $ 3,186 $ 3,186 $ — (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2018 With no related allowance recorded: Commercial $ 5,364 $ 6,411 $ — Commercial real estate 4,340 4,340 — With an allowance recorded: Commercial — — — Commercial real estate — — — Total: Commercial $ 5,364 $ 6,411 $ — Commercial real estate $ 4,340 $ 4,340 $ — (Amounts in thousands) Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 2019 With no related allowance recorded: Commercial $ 4,158 $ 71 $ 4,555 $ 219 Commercial real estate 3,219 48 3,211 111 With an allowance recorded: Commercial 989 — 661 — Commercial real estate — — — — Total: Commercial $ 5,147 $ 71 $ 5,216 $ 219 Commercial real estate $ 3,219 $ 48 $ 3,211 $ 111 (Amounts in thousands) Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 2018 With no related allowance recorded: Commercial $ 4,615 $ 8 $ 3,041 $ 11 Commercial real estate 4,180 104 4,360 212 With an allowance recorded: Commercial — — 1,821 46 Commercial real estate — — — — Total: Commercial $ 4,615 $ 8 $ 4,862 $ 57 Commercial real estate $ 4,180 $ 104 $ 4,360 $ 212

Legal Proceedings

Legal Proceedings	6 Months Ended
	Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Legal Proceedings	5.) Legal Proceedings: The Company is involved in legal actions arising in the ordinary course of business. In the opinion of management, the outcomes from these matters, either individually or in the aggregate, are not expected to have any material effect on the Company.

Earnings Per Share and Capital

Earnings Per Share and Capital Transactions	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share and Capital Transactions	Earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common outstanding stock, net of any treasury shares, during the period. Diluted earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding, net of any treasury shares, after consideration of the potential dilutive effect of common stock equivalents, based upon the treasury stock method using an average market price for the period. The common stock equivalents are comprised of restricted share awards. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net income (amounts in thousands) $ 1,328 $ 3,302 $ 3,433 $ 4,839 Weighted average common shares outstanding 4,346,763 4,369,792 4,336,804 4,381,540 Net effect of dilutive common share equivalents 4,721 4,010 6,963 6,128 Adjusted average shares outstanding-dilutive 4,351,484 4,373,802 4,343,767 4,387,668 Basic earnings per share $ 0.30 $ 0.75 $ 0.79 $ 1.10 Diluted earnings per share $ 0.30 $ 0.75 $ 0.79 $ 1.10

Subordinated Debt

Subordinated Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Subordinated Debt	7.) Subordinated Debt: In July 2007, a trust formed by the Company issued $5.0 million of floating rate trust preferred securities as part of a pooled offering of such securities due December 2037. The Company owns all $155,000 of the common securities issued by the trust. The securities bear interest at the 3-month LIBOR rate plus 1.45%. The rates at June 30, 2019 and December 31, 2018 were 3.86% and 4.24%, respectively. The Company issued subordinated debentures to the trust in exchange for the proceeds of the trust preferred offering. The debentures represent the sole assets of this trust. The Company may redeem the subordinated debentures, in whole or in part, at par. The trust is not consolidated with the Company’s financial statements. Accordingly, the Company does not report the securities issued by the trust as liabilities, but instead reports as liabilities the subordinated debentures issued by the Company and held by the trust. The subordinated debentures qualify as Tier 1 capital for regulatory purposes in determining and evaluating the Company’s capital adequacy.

Commitments

Commitments	6 Months Ended
	Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments	8.) Commitments: The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees. Such instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the Consolidated Balance Sheets. The contract or notional amounts on those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. In the event of nonperformance by the other party, the Company’s exposure to credit loss on these financial instruments is represented by the contract or notional amount of the instrument. The Company uses the same credit policies in making commitments and conditional obligations as it does for instruments recorded on the balance sheet. The amount and nature of collateral obtained, if any, is based on management’s credit evaluation. The following table is a summary of such contractual commitments: (Amounts in thousands) June 30, 2019 December 31, 2018 Commitments to extend credit: Fixed rate $ 31,756 $ 31,225 Variable rate 81,868 74,050 Standby letters of credit 3,560 3,455 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Generally, these financial arrangements have fixed expiration dates or other termination clauses and may require payment of a fee. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. The increase in commitments is in line with the Company’s increased focus on commercial and industrial lending, and specifically lines of credit. The Company also offers limited overdraft protection as a non-contractual courtesy which is available to businesses as well as individually/jointly owned accounts in good standing for personal or household use. The Company reserves the right to discontinue this service without prior notice. The following table is a summary of overdraft protection for the periods indicated: (Amounts in thousands) June 30, 2019 December 31, 2018 Overdraft protection available on depositors' accounts $ 8,382 $ 8,708 Balance of overdrafts included in loans 87 116 Average daily balance of overdrafts 107 104 Average daily balance of overdrafts as a percentage of available 1.28 % 1.19 % Customer Derivatives - Interest Rate Swaps/Floors – The Company enters into interest rate swaps that allow our commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate into a fixed-rate. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third party are not designated as hedges under FASB ASC 815 and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. There was no effect on earnings in any periods presented. At June 30, 2019, based on the contract values, the Company had one U.S. Government-sponsored mortgage-backed security pledged for collateral on its interest rate swaps with the third party financial institution at a fair value of $1.6 million, whereas none was required at December 31, 2018. Summary information regarding these derivatives is presented below: (Amounts in thousands) Notional Amount Fair Value June 30, 2019 December 31, 2018 Interest Rate Paid Interest Rate Received June 30, 2019 December 31, 2018 Customer interest rate swap Maturing in 2020 $ 2,362 $ 2,410 1 Mo. Libor + Margin Fixed $ 2 $ (30 ) Maturing in 2025 4,745 4,930 1 Mo. Libor + Margin Fixed 135 (28 ) Maturing in 2026 1,884 1,946 1 Mo. Libor + Margin Fixed 14 (64 ) Maturing in 2027 13,578 13,790 1 Mo. Libor + Margin Fixed 623 (54 ) Maturing in 2028 6,233 6,395 1 Mo. Libor + Margin Fixed 559 268 Total $ 28,802 $ 29,471 $ 1,333 $ 92 Third party interest rate swap Maturing in 2020 $ 2,362 $ 2,410 Fixed 1 Mo. Libor + Margin $ (2 ) $ 30 Maturing in 2025 4,745 4,930 Fixed 1 Mo. Libor + Margin (135 ) 28 Maturing in 2026 1,884 1,946 Fixed 1 Mo. Libor + Margin (14 ) 64 Maturing in 2027 13,578 13,790 Fixed 1 Mo. Libor + Margin (623 ) 54 Maturing in 2028 6,233 6,395 Fixed 1 Mo. Libor + Margin (559 ) (268 ) Total $ 28,802 $ 29,471 $ (1,333 ) $ (92 ) The following table presents the fair values of derivative instruments in the balance sheet: (Amounts in thousands) Assets Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value June 30, 2019 Interest rate derivatives Other assets $ 1,333 Other liabilities $ 1,333 December 31, 2018 Interest rate derivatives Other assets $ 92 Other liabilities $ 92

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities	9.) Fair Value of Assets and Liabilities: Measurements The Company groups assets and liabilities recorded at fair value into three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with level 1 considered highest and level 3 considered lowest). A brief description of each level follows: Level 1: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but which trade less frequently, and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level 3: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where inputs into the determination of fair value require significant management judgment or estimation. The following table presents the assets reported on the consolidated balance sheets, on a recurring basis, at their fair value as of June 30, 2019 and December 31, 2018 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. (Amounts in thousands) Fair Value Measurements at June 30, 2019 Using Description June 30, 2019 Level 1 Level 2 Level 3 ASSETS U.S. Government agencies and corporations $ 3,344 $ — $ 3,344 $ — Obligations of states and political subdivisions 66,868 — 66,868 — U.S. Government-sponsored mortgage-backed securities 48,428 — 48,428 — U.S. Government-sponsored collateralized mortgage obligations 10,351 — 10,351 — U.S. Government-guaranteed small business administration pools 7,245 — 7,245 — Loans held for sale 5,676 5,676 — — Interest rate derivatives 1,333 — 1,333 — LIABILITIES Interest rate derivatives $ 1,333 $ — $ 1,333 $ — (Amounts in thousands) Fair Value Measurements at December 31, 2018 Using Description December 31, 2018 Level 1 Level 2 Level 3 ASSETS U.S. Government agencies and corporations $ 9,002 $ — $ 9,002 $ — Obligations of states and political subdivisions 51,658 — 51,658 — U.S. Government-sponsored mortgage-backed securities 56,587 — 56,587 — U.S. Government-sponsored collateralized mortgage obligations 11,976 — 11,976 — U.S. Government-guaranteed small business administration pools 7,700 — 7,700 — Loans held for sale 1,040 1,040 — — Interest rate derivatives 92 — 92 — LIABILITIES Interest rate derivatives $ 92 $ — $ 92 $ — The following tables present the changes in the Level 3 fair value category for the three and six months ended June 30, 2019 and 2018. The Company classifies financial instruments in Level 3 of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Trust preferred securities Trust preferred securities Trust preferred securities Trust preferred securities Beginning balance $ — $ 1,090 $ — $ 895 Net realized/unrealized losses included in: Noninterest income — — — — Other comprehensive income (loss) — 528 — 723 Discount accretion (premium amortization) — — — — Sales — (1,618 ) — (1,618 ) Purchases, issuance, and settlements — — — — Ending balance $ — $ — $ — $ — Losses included in net income for the period relating to assets held at period end $ — $ — $ — $ — Financial Instruments The Company discloses fair value information about financial instruments, whether or not recognized in the Consolidated Balance Sheets, for which it is practicable to estimate the value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Such techniques and assumptions, as they apply to individual categories of the financial instruments, are as follows: Investment securities available-for-sale– Fair values of securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Loans held for sale – Loans held for sale consist of residential mortgage loans originated for sale. Loans held for sale are recorded at fair value based on what the secondary markets have offered on best efforts commitments. Interest rate derivatives – The fair value is based on settlement values adjusted for credit risks associated with the counter parties and the Company and observable market interest rate curves. In addition, other assets and liabilities of the Company that are not defined as financial instruments are not included in the disclosures, such as property and equipment. Also, non-financial instruments typically not recognized in financial statements nevertheless may have value but are not included in the above disclosures. These include, among other items, the estimated earning power of core deposit accounts, the trained work force, customer goodwill and similar items. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and fair values of the Company’s financial instruments are as follows: (Amounts in thousands) June 30, 2019 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 24,239 $ 24,239 $ — $ — $ 24,239 Investment securities available-for-sale 136,236 — 136,236 — 136,236 Loans held for sale 5,676 5,676 — — 5,676 Loans 473,461 — — 478,885 478,885 Bank-owned life insurance 15,518 15,518 — — 15,518 Accrued interest receivable 2,290 2,290 — — 2,290 Interest rate derivatives 1,333 — 1,333 — 1,333 LIABILITIES: Demand, savings and money market deposits $ 438,686 $ 438,686 $ — $ — $ 438,686 Time deposits 138,228 — — 139,544 139,544 Securities sold under agreements to repurchase 1,675 1,675 — — 1,675 Federal Home Loan Bank advances - short term 6,000 — — 5,998 5,998 Federal Home Loan Bank advances - long term 16,000 — — 16,052 16,052 Subordinated debt 5,155 — — 4,743 4,743 Accrued interest payable 563 563 — — 563 Interest rate derivatives 1,333 — 1,333 — 1,333 (Amounts in thousands) December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 19,692 $ 19,692 $ — $ — $ 19,692 Investment securities available-for-sale 136,923 — 136,923 — 136,923 Loans held for sale 1,040 1,040 — — 1,040 Loans 510,194 — — 513,103 513,103 Bank-owned life insurance 15,711 15,711 — — 15,711 Accrued interest receivable 2,255 2,255 — — 2,255 Interest rate derivatives 92 — 92 — 92 LIABILITIES: Demand, savings and money market deposits $ 483,054 $ 483,054 $ — $ — $ 483,054 Time deposits 121,365 — — 122,295 122,295 Short term borrowings 2,206 2,206 — — 2,206 Federal Home Loan Bank advances - short term 12,000 — — 11,987 11,987 Federal Home Loan Bank advances - long term 16,000 — — 15,880 15,880 Subordinated debt 5,155 — — 4,620 4,620 Accrued interest payable 371 371 — — 371 Interest rate derivatives 92 — 92 — 92 The following table presents quantitative information about the Level 3 significant inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at June, 30 2019. There were no such Level 3 measurements at December 31, 2018. (Amounts in thousands) Fair value at June 30, 2019 Valuation Technique Significant Unobservable Input Range of Inputs Impaired loans $ 405 Appraisal of Collateral Appraisal Adjustments (76)% Liquidation Expenses (10)%

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Accumulated Other Comprehensive Loss	10.) Accumulated Other Comprehensive Loss: The following table presents the changes in accumulated other comprehensive loss by component net of tax for the three and six months ended June 30, 2019 and 2018: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Unrealized gains (losses) on available- for-sale securities (a) Change in pension and postretirement obligations (a) Unrealized gains (losses) on available- for-sale securities (a) Change in pension and postretirement obligations (a) Unrealized gains (losses) on available- for-sale securities (a) Change in pension and postretirement obligations (a) Unrealized gains (losses) on available- for-sale securities (a) Change in pension and postretirement obligations (a) Beginning balance $ (1,815 ) $ 37 $ (4,144 ) $ (46 ) $ (3,686 ) $ 30 $ (1,787 ) $ (38 ) Other comprehensive income (loss) before reclassification 1,597 7 (67 ) 111 3,468 14 (2,408 ) 103 Amount reclassified from accumulated other comprehensive loss 35 — 33 — 35 — 17 — Total other comprehensive income (loss) 1,632 7 (34 ) 111 3,503 14 (2,391 ) 103 Ending balance $ (183 ) $ 44 $ (4,178 ) $ 65 $ (183 ) $ 44 $ (4,178 ) $ 65 (a) All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2019 and 2018: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Amount reclassified from accumulated other comprehensive income (a) Amount reclassified from accumulated other comprehensive loss (a) Amount reclassified from accumulated other comprehensive income (a) Amount reclassified from accumulated other comprehensive loss (a) Affected line item in the statement where net income is presented Details about other comprehensive income or loss: Unrealized gains on available- for-sale securities $ (44 ) $ (41 ) $ (44 ) $ (21 ) Investment securities available-for-sale losses, net 9 8 9 4 Federal income tax expense $ (35 ) $ (33 ) $ (35 ) $ (17 ) (a) Amounts in parentheses indicate debits to net income.

Post-Retirement Obligations

Post-Retirement Obligations	6 Months Ended
	Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]
Post-Retirement Obligations	11.) Post-Retirement Obligations: The Company accrues for the monthly benefit expense of post-retirement cost of insurance for split dollar life insurance coverage. The following table presents the changes in the accumulated liability: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Beginning balance $ 823 $ 890 $ 831 $ 876 Expense recorded (1 ) 5 (2 ) 11 Other comprehensive loss (income) recorded (7 ) (111 ) (14 ) (103 ) Ending balance $ 815 $ 784 $ 815 $ 784

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jun. 30, 2019
Stock Repurchase Program [Abstract]
Stock Repurchase Program	12.) Stock Repurchase Program: On January 23, 2018, the Company’s Board of Directors approved a new program which allowed the Company to repurchase up to 100,000 shares, or approximately 2.3% of the 4,420,136 shares outstanding at January 23, 2018, of the Company’s outstanding common stock. On May 22, 2018 the Company’s Board of Directors approved an increase in the number of shares authorized for repurchase under the January 23, 2018 plan by 200,000 shares bringing the total to 300,000 shares authorized. Both of these programs terminated on December 31, 2018. The Company purchased 80,944 shares under this program. On December 18, 2018, the Company’s Board of Directors approved a new program which allows the Company to repurchase up to 300,000 shares, or approximately 6.9% of the 4,349,624 outstanding shares of common stock effective December 18, 2018. This program will terminate on December 31, 2019, or upon purchase of 300,000 shares if earlier or at any time without prior notice. To date, no shares have been repurchased under this program. Repurchased shares are designated as treasury shares, available for general corporate purposes, including possible use in connection with the Company’s dividend reinvestment program, employee benefit plans, acquisitions or other distributions. Based on the value of the Company’s stock on June 30, 2019, the remaining authorization to repurchase the stock for the program is approximately $6.9 million.

Securities Sold Under Agreement

Securities Sold Under Agreements to Repurchase	6 Months Ended
	Jun. 30, 2019
Securities Sold Under Agreements To Repurchase [Abstract]
Securities Sold Under Agreements to Repurchase	13.) Securities Sold Under Agreements to Repurchase: The following table provides additional detail regarding repurchase agreements: (Amounts in thousands) Repurchase Agreements (Sweep) Accounted for as Secured Borrowings At June 30, 2019 At December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Overnight and Continuous Repurchase agreements: U.S. Government-sponsored mortgage-backed securities $ 3,047 $ 3,066 Total collateral carrying value $ 3,047 $ 3,066 Total repurchase agreements $ 1,675 $ 2,206

Equity Compensation

Equity Compensation	6 Months Ended
	Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Compensation	14.) Equity Compensation: The Omnibus Equity Plan permits the award of up to 340,000 shares to the Company’s employees to promote the long-term financial success of the Company, increasing shareholder value by providing employees the opportunity to acquire an ownership interest in the Company and enabling the Company and its related entities to attract and retain the services of those upon whom the successful conduct of business depends. In the first six months of 2019, 30,156 shares were granted to employees under the plan, compared to 12,593 shares being granted under the plan in the first six months of 2018. The Company is expensing the grant date fair value of all share-based compensation over the requisite vesting periods on a prorated straight-line basis. In the first six months of 2019 and 2018, compensation expense of $501,000 and $86,000, respectively, was recorded in the Consolidated Statements of Income. In the second quarters of 2019 and 2018, compensation expense of $447,000 and $52,000, respectively, was recorded in the Consolidated Statements of Income. As of June 30, 2019, there was $490,000 of total unrecognized compensation expense related to the non-vested shares granted under the Plan. Shares awarded under this plan can vest immediately and/or on the anniversary of the award date from one to three years out if the employee remains employed with Cortland Bancorp. The remaining cost is expected to be recognized over a weighted average period of 11.9 months. Granted shares are awarded upon a combination of service and achievement of performance objectives derived from one or more of the performance criteria. The main metrics used for the periods presented were three-year earnings per share growth and three-year total shareholder return ranked versus a peer group. The following is the activity under the Omnibus Equity Plan during the six months ended June 30, 2019: Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2019 23,591 $ 19.67 Granted 30,156 22.58 Vested (26,821 ) 20.81 Forfeited — — Nonvested at June 30, 2019 26,926 $ 21.79 The Director Equity Plan permits the award of up to 113,000 shares to nonemployee directors to promote the long-term financial success of the Company, increasing shareholder value by enabling the Company and its related entities to attract and retain the services of those directors upon whom the successful conduct of business depends. There were 1,525 Board approved shares granted in the first six months of 2019, and there were 989 Board approved shares granted under the plan in the first six months of 2018. In the first six months of 2019, there was $34,000 expense recorded in the Consolidated Statements of Income, and there was $22,000 expense recorded in the first six months of 2018. There was no expense recorded in the first quarter of 2019 and 2018.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	15.) Leases: Operating leases in which we are the lessee are recorded as operating lease Right of Use (“ROU”) assets and operating lease liabilities, included in other assets and other liabilities, respectively, on our consolidated balance sheets. We do not currently have any significant finance leases in which we are the lessee. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. We elected to adopt the transition method, which uses a modified retrospective transition approach. ROU assets and operating lease liabilities are recognized as of the date of adoption based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the date of initial application. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy and equipment expense in the consolidated statements of income and other comprehensive income. Our leases relate primarily to office space and bank branches with remaining lease terms of generally 5 to 10 years. Certain lease arrangements contain extension options which typically range from 5 to 15 years at the then fair market rental rates. As these extension options are generally considered reasonably certain of exercise, they are included in the lease term. As of June 30, 2019, operating lease ROU assets and liabilities were $2.0 million. For year ended and quarter ended June 30, 2019, we recognized $133,000 and $71,000 in operating lease cost, $123,000 and $66,000 is operating cash flows from operating leases and $10,000 and $5,000 in non-cash expense amortization of the ROU asset and the implicit interest, respectively. The following table summarizes other information related to our operating leases: June 30, 2019 Weighted-average remaining lease term-operating leases in years 15.83 Weighted-average discount rate - operating leases 3.14 % The following table presents aggregate lease maturities and obligations as of June 30, 2019: (Amounts in thousands) June 30, 2019 2019 $ 124 2020 231 2021 155 2022 155 2023 157 2024 and thereafter 1,666 Total lease payments 2,488 Less: interest 496 Present value of lease liabilities $ 1,992

Authoritative Accounting Guid_2

Authoritative Accounting Guidance (Policies)	6 Months Ended
	Jun. 30, 2019
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
Authoritative Accounting Guidance	2.) Authoritative Accounting Guidance: In February 2016, the FASB issued ASU (Accounting Standard Update) 2016-02, Leases (Topic 842) Leases (Topic 842) – Targeted Improvements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beg For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. This Update did not have a significant impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively. This Update did not have a significant impact on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). In October 2018, the FASB issued ASU 2018-16 , Derivatives and Hedging (Topic 815) In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, w In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections, Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. Disclosure Update and Simplification Investment Company Reporting Modernization

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2019
Investments Debt And Equity Securities [Abstract]
Summary of Investment Securities Available-for-Sale and Regulatory Stock	The following table is a summary of investment securities available-for-sale and regulatory stock: (Amounts in thousands) June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 3,347 $ 1 $ 4 $ 3,344 Obligations of states and political subdivisions 66,057 911 100 66,868 U.S. Government-sponsored mortgage-backed securities 49,421 21 1,014 48,428 U.S. Government-sponsored collateralized mortgage obligations 10,316 95 60 10,351 U.S. Government-guaranteed small business administration pools 7,327 — 82 7,245 Total investment securities available-for-sale $ 136,468 $ 1,028 $ 1,260 $ 136,236 Federal Home Loan Bank (FHLB) stock $ 2,609 $ — $ — $ 2,609 Federal Reserve Bank (FRB) stock 226 — — 226 Total regulatory stock $ 2,835 $ — $ — $ 2,835 (Amounts in thousands) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agencies and corporations $ 9,242 $ 11 $ 251 $ 9,002 Obligations of states and political subdivisions 53,187 26 1,555 51,658 U.S. Government-sponsored mortgage-backed securities 59,070 — 2,483 56,587 U.S. Government-sponsored collateralized mortgage obligations 12,112 41 177 11,976 U.S. Government-guaranteed small business administration pools 7,978 — 278 7,700 Total investment securities available-for-sale $ 141,589 $ 78 $ 4,744 $ 136,923 Federal Home Loan Bank (FHLB) stock $ 2,355 $ — $ — $ 2,355 Federal Reserve Bank (FRB) stock 226 — — 226 Total regulatory stock $ 2,581 $ — $ — $ 2,581
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity	The amortized cost and fair value of debt securities at June 30, 2019, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 482 490 Due after five years through ten years 5,705 5,687 Due after ten years 70,544 71,280 Total 76,731 77,457 U.S. Government-sponsored mortgage-backed and related securities 59,737 58,779 Total investment securities available-for-sale $ 136,468 $ 136,236
Proceeds and Gains or Losses Realized on Available for Sale Securities Sold or Called	The table below sets forth the proceeds and gains or losses realized on available for sale securities sold or called for the periods presented: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Proceeds on securities sold $ 13,622 $ 1,577 $ 13,622 $ 21,418 Gross realized gains 82 — 82 123 Gross realized losses 126 41 126 144
Fair Value of Securities with Unrealized Losses and an Aging of those Unrealized Losses	The following is a summary of the fair value of available-for-sale securities with unrealized losses and an aging of those unrealized losses at June 30, 2019: (Amounts in thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government agencies and corporations $ — $ — $ 2,996 $ 4 $ 2,996 $ 4 Obligations of states and political subdivisions 4,502 7 8,351 93 12,853 100 U.S. Government-sponsored mortgage-backed securities — — 46,806 1,014 46,806 1,014 U.S. Government-sponsored collateralized mortgage obligations — — 4,341 60 4,341 60 U.S. Government-guaranteed small business administration pools — — 7,245 82 7,245 82 Total $ 4,502 $ 7 $ 69,739 $ 1,253 $ 74,241 $ 1,260 The above table comprises 53 investment securities where the fair value is less than the related amortized cost. The following is a summary of the fair value of available-for-sale securities with unrealized losses and an aging of those unrealized losses at December 31, 2018: (Amounts in thousands) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Government agencies and corporations $ 3,280 $ 6 $ 2,755 $ 245 $ 6,035 $ 251 Obligations of states and political subdivisions 23,616 567 24,607 988 48,223 1,555 U.S. Government-sponsored mortgage-backed securities 1,598 18 54,989 2,465 56,587 2,483 U.S. Government-sponsored collateralized mortgage obligations — — 5,350 177 5,350 177 U.S. Government-guaranteed small business administration pools — — 7,700 278 7,700 278 Total $ 28,494 $ 591 $ 95,401 $ 4,153 $ 123,895 $ 4,744

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2019
Receivables [Abstract]
Composition of the Loan Portfolio	The following represents the composition of the loan portfolio for the period ending: (Amounts in thousands) June 30, 2019 December 31, 2018 Balance % Balance % Commercial $ 71,883 15.1 $ 112,440 21.9 Commercial real estate 287,300 60.1 303,804 59.0 Residential real estate 89,897 18.8 69,845 13.6 Consumer - home equity 25,391 5.3 25,076 4.9 Consumer - other 3,475 0.7 3,227 0.6 Total loans $ 477,946 $ 514,392
Certain Qualitative Factors Considered in Measuring Risk Trends	These factors include, but are not limited to, the following: Factor Considered: Risk Trend: Levels of and trends in charge-offs, classifications and non-accruals Decreasing Trends in volume and terms Stable Changes in lending policies and procedures Stable Experience, depth and ability of management, including loan review function Stable Economic trends, including valuation of underlying collateral Stable Concentrations of credit Decreasing
Factors Analyzed and Applied to Loans Internally Graded with Higher Credit Risk	The following factors are analyzed and applied to loans internally graded with higher credit risk in addition to the above factors for non-classified loans: Factor Considered: Risk Trend: Levels and trends in classification Stable Declining trends in financial performance Stable Structure and lack of performance measures Stable Migration between risk categories Stable
Analysis of Changes in the Allowance for Loan Losses	The following is an analysis of changes in the allowance for loan losses for the periods ended: Three Months Ended (Amounts in thousands) June 30, 2019 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,578 $ 2,201 $ 320 $ 114 $ 127 $ 4,340 Loan charge-offs — — — — (51 ) (51 ) Recoveries — — — 1 15 16 Net loan recoveries (charge-offs) — — — 1 (36 ) (35 ) Provision charged to operations 139 (36 ) 48 (17 ) 46 180 Balance at end of period $ 1,717 $ 2,165 $ 368 $ 98 $ 137 $ 4,485 (Amounts in thousands) June 30, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,334 $ 2,290 $ 93 $ 67 $ 100 $ 3,884 Loan charge-offs — — — — (27 ) (27 ) Recoveries — 150 1 1 11 163 Net loan recoveries (charge-offs) — 150 1 1 (16 ) 136 Provision charged to operations 60 17 (14 ) (2 ) 14 75 Balance at end of period $ 1,394 $ 2,457 $ 80 $ 66 $ 98 $ 4,095 Six Months Ended (Amounts in thousands) June 30, 2019 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,232 $ 2,414 $ 314 $ 115 $ 123 $ 4,198 Loan charge-offs — — (29 ) — (109 ) (138 ) Recoveries 28 — — 1 41 70 Net loan recoveries (charge-offs) 28 — (29 ) 1 (68 ) (68 ) Provision charged to operations 457 (249 ) 83 (18 ) 82 355 Balance at end of period $ 1,717 $ 2,165 $ 368 $ 98 $ 137 $ 4,485 (Amounts in thousands) June 30, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Balance at beginning of period $ 1,591 $ 2,702 $ 117 $ 70 $ 98 $ 4,578 Loan charge-offs (1,163 ) — — — (77 ) (1,240 ) Recoveries — 150 1 4 27 182 Net loan recoveries (charge-offs) (1,163 ) 150 1 4 (50 ) (1,058 ) Provision charged to operations 966 (395 ) (38 ) (8 ) 50 575 Balance at end of period $ 1,394 $ 2,457 $ 80 $ 66 $ 98 $ 4,095
Allowance for Loan Losses and the Recorded Investment in Loans	The following tables present a full breakdown by portfolio classification of the allowance for loan losses and the recorded investment in loans at June 30, 2019 and December 31, 2018: (Amounts in thousands) June 30, 2019 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 579 $ — $ — $ — $ — $ 579 Collectively evaluated for impairment 1,138 2,165 368 98 137 3,906 Total ending allowance balance $ 1,717 $ 2,165 $ 368 $ 98 $ 137 $ 4,485 Loan Portfolio: Individually evaluated for impairment $ 5,052 $ 3,186 $ — $ — $ — $ 8,238 Collectively evaluated for impairment 66,831 284,114 89,897 25,391 3,475 469,708 Total ending loans balance $ 71,883 $ 287,300 $ 89,897 $ 25,391 $ 3,475 $ 477,946 (Amounts in thousands) December 31, 2018 Commercial Commercial real estate Residential real estate Consumer - home equity Consumer - other Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,232 2,414 314 115 123 4,198 Total ending allowance balance $ 1,232 $ 2,414 $ 314 $ 115 $ 123 $ 4,198 Loan Portfolio: Individually evaluated for impairment $ 5,364 $ 4,340 $ — $ — $ — $ 9,704 Collectively evaluated for impairment 107,076 299,464 69,845 25,076 3,227 504,688 Total ending loans balance $ 112,440 $ 303,804 $ 69,845 $ 25,076 $ 3,227 $ 514,392
Summary of Credit Quality Indicators by Internally Assigned Grades	The following table is a summary of credit quality indicators by internally assigned grades as of June 30, 2019 and December 31, 2018: (Amounts in thousands) Commercial Commercial real estate June 30, 2019 Pass $ 54,777 $ 257,781 Special Mention 6,370 25,687 Substandard 10,736 3,832 Doubtful — — Ending Balance $ 71,883 $ 287,300 (Amounts in thousands) Commercial Commercial real estate December 31, 2018 Pass $ 94,316 $ 271,370 Special Mention 6,914 25,199 Substandard 11,210 7,235 Doubtful — — Ending Balance $ 112,440 $ 303,804
Summary of Consumer Credit Exposure	The following table is a summary of consumer credit exposure as of June 30, 2019 and December 31, 2018: (Amounts in thousands) Residential real estate Consumer Consumer - other June 30, 2019 Performing $ 89,638 $ 25,265 $ 3,475 Nonperforming 259 126 — Total $ 89,897 $ 25,391 $ 3,475 (Amounts in thousands) Residential real estate Consumer Consumer - other December 31, 2018 Performing $ 69,535 $ 24,956 $ 3,227 Nonperforming 310 120 — Total $ 69,845 $ 25,076 $ 3,227
Summary of Classes of Loans on Non-Accrual Status	The following table is a summary of classes of loans on non-accrual status as of June 30, 2019 and December 31, 2018: (Amounts in thousands) June 30, 2019 December 31, 2018 Commercial $ 1,468 $ 1,291 Commercial real estate 591 512 Residential real estate 259 310 Consumer: Consumer - home equity 126 120 Consumer - other — — Total $ 2,444 $ 2,233
Information Related to Loans Modified in a TDR	The following presents, by class, information related to loans modified in a TDR during the periods ending June 30, 2018. (Dollar amounts in thousands) Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Number of contracts Pre- modification recorded investment Post- modification recorded investment Increase in the allowance Number of contracts Pre- modification recorded investment Post- modification recorded investment Increase in the allowance Commercial — $ — $ — $ — 7 $ 5,373 $ 4,210 $ — Commercial real estate — — — — — — — — Total restructured loans — $ — $ — $ — $ 7 $ 5,373 $ 4,210 $ — Subsequently defaulted — — — —
Aging Analysis of the Recorded Investment of Past Due Loans	The following table is an aging analysis of the recorded investment of past due loans as of June 30, 2019 and December 31, 2018: (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Current Total Loans Recorded Investment 90 Days and Accruing June 30, 2019 Commercial $ 65 $ 983 $ 485 $ 1,533 $ 70,350 $ 71,883 $ — Commercial real estate — — 262 262 287,038 287,300 — Residential real estate 475 — 243 718 89,179 89,897 — Consumer: Consumer - home equity 25 — 126 151 25,240 25,391 — Consumer - other 10 — — 10 3,465 3,475 — Total $ 575 $ 983 $ 1,116 $ 2,674 $ 475,272 $ 477,946 $ — (Amounts in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Current Total Loans Recorded Investment 90 Days and Accruing December 31, 2018 Commercial $ 14 $ — $ 1,291 $ 1,305 $ 111,135 $ 112,440 $ — Commercial real estate — — 167 167 303,637 303,804 — Residential real estate 36 182 257 475 69,370 69,845 — Consumer: Consumer - home equity — 141 25 166 24,910 25,076 — Consumer - other 17 — — 17 3,210 3,227 — Total $ 67 $ 323 $ 1,740 $ 2,130 $ 512,262 $ 514,392 $ —
Recorded Investment, Unpaid Principal Balances, Average Recorded Investments and Interest Recognized on Impaired Loans, Excluding Homogenous Loans for Which Impaired Analyses are Not Necessarily Performed	The following table presents the recorded investment and unpaid principal balances for impaired loans, excluding homogenous loans for which impaired analyses are not necessarily performed, with the associated allowance amount, if applicable, at June 30, 2019 and December 31, 2018. Also presented are the average recorded investments in the impaired balances and interest income recognized after impairment for the three and six months ended June 30, 2019 and 2018. (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance June 30, 2019 With no related allowance recorded: Commercial $ 4,068 $ 5,047 $ — Commercial real estate 3,186 3,186 — With an allowance recorded: Commercial 984 984 579 Commercial real estate — — — Total: Commercial $ 5,052 $ 6,031 $ 579 Commercial real estate $ 3,186 $ 3,186 $ — (Amounts in thousands) Recorded Investment Unpaid Principal Balance Related Allowance December 31, 2018 With no related allowance recorded: Commercial $ 5,364 $ 6,411 $ — Commercial real estate 4,340 4,340 — With an allowance recorded: Commercial — — — Commercial real estate — — — Total: Commercial $ 5,364 $ 6,411 $ — Commercial real estate $ 4,340 $ 4,340 $ — (Amounts in thousands) Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 2019 With no related allowance recorded: Commercial $ 4,158 $ 71 $ 4,555 $ 219 Commercial real estate 3,219 48 3,211 111 With an allowance recorded: Commercial 989 — 661 — Commercial real estate — — — — Total: Commercial $ 5,147 $ 71 $ 5,216 $ 219 Commercial real estate $ 3,219 $ 48 $ 3,211 $ 111 (Amounts in thousands) Three Months Ended Six Months Ended Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized June 30, 2018 With no related allowance recorded: Commercial $ 4,615 $ 8 $ 3,041 $ 11 Commercial real estate 4,180 104 4,360 212 With an allowance recorded: Commercial — — 1,821 46 Commercial real estate — — — — Total: Commercial $ 4,615 $ 8 $ 4,862 $ 57 Commercial real estate $ 4,180 $ 104 $ 4,360 $ 212

Earnings Per Share and Capita_2

Earnings Per Share and Capital Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Computation of Basic Earnings Per Common Share	Earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares of common outstanding stock, net of any treasury shares, during the period. Diluted earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding, net of any treasury shares, after consideration of the potential dilutive effect of common stock equivalents, based upon the treasury stock method using an average market price for the period. The common stock equivalents are comprised of restricted share awards. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net income (amounts in thousands) $ 1,328 $ 3,302 $ 3,433 $ 4,839 Weighted average common shares outstanding 4,346,763 4,369,792 4,336,804 4,381,540 Net effect of dilutive common share equivalents 4,721 4,010 6,963 6,128 Adjusted average shares outstanding-dilutive 4,351,484 4,373,802 4,343,767 4,387,668 Basic earnings per share $ 0.30 $ 0.75 $ 0.79 $ 1.10 Diluted earnings per share $ 0.30 $ 0.75 $ 0.79 $ 1.10

Commitments (Tables)

Commitments (Tables)	6 Months Ended
	Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Summary of Contractual Commitments	The following table is a summary of such contractual commitments: (Amounts in thousands) June 30, 2019 December 31, 2018 Commitments to extend credit: Fixed rate $ 31,756 $ 31,225 Variable rate 81,868 74,050 Standby letters of credit 3,560 3,455
Summary of Overdraft Protection	The following table is a summary of overdraft protection for the periods indicated: (Amounts in thousands) June 30, 2019 December 31, 2018 Overdraft protection available on depositors' accounts $ 8,382 $ 8,708 Balance of overdrafts included in loans 87 116 Average daily balance of overdrafts 107 104 Average daily balance of overdrafts as a percentage of available 1.28 % 1.19 %
Summary of Information Regarding Derivatives	Summary information regarding these derivatives is presented below: (Amounts in thousands) Notional Amount Fair Value June 30, 2019 December 31, 2018 Interest Rate Paid Interest Rate Received June 30, 2019 December 31, 2018 Customer interest rate swap Maturing in 2020 $ 2,362 $ 2,410 1 Mo. Libor + Margin Fixed $ 2 $ (30 ) Maturing in 2025 4,745 4,930 1 Mo. Libor + Margin Fixed 135 (28 ) Maturing in 2026 1,884 1,946 1 Mo. Libor + Margin Fixed 14 (64 ) Maturing in 2027 13,578 13,790 1 Mo. Libor + Margin Fixed 623 (54 ) Maturing in 2028 6,233 6,395 1 Mo. Libor + Margin Fixed 559 268 Total $ 28,802 $ 29,471 $ 1,333 $ 92 Third party interest rate swap Maturing in 2020 $ 2,362 $ 2,410 Fixed 1 Mo. Libor + Margin $ (2 ) $ 30 Maturing in 2025 4,745 4,930 Fixed 1 Mo. Libor + Margin (135 ) 28 Maturing in 2026 1,884 1,946 Fixed 1 Mo. Libor + Margin (14 ) 64 Maturing in 2027 13,578 13,790 Fixed 1 Mo. Libor + Margin (623 ) 54 Maturing in 2028 6,233 6,395 Fixed 1 Mo. Libor + Margin (559 ) (268 ) Total $ 28,802 $ 29,471 $ (1,333 ) $ (92 )
Schedule of Fair Values of Derivative Instruments	The following table presents the fair values of derivative instruments in the balance sheet: (Amounts in thousands) Assets Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value June 30, 2019 Interest rate derivatives Other assets $ 1,333 Other liabilities $ 1,333 December 31, 2018 Interest rate derivatives Other assets $ 92 Other liabilities $ 92

Fair Value of Assets and Liab_2

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Assets Reported on Consolidated Balance Sheets on a Recurring Basis at their Fair Value	The following table presents the assets reported on the consolidated balance sheets, on a recurring basis, at their fair value as of June 30, 2019 and December 31, 2018 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. (Amounts in thousands) Fair Value Measurements at June 30, 2019 Using Description June 30, 2019 Level 1 Level 2 Level 3 ASSETS U.S. Government agencies and corporations $ 3,344 $ — $ 3,344 $ — Obligations of states and political subdivisions 66,868 — 66,868 — U.S. Government-sponsored mortgage-backed securities 48,428 — 48,428 — U.S. Government-sponsored collateralized mortgage obligations 10,351 — 10,351 — U.S. Government-guaranteed small business administration pools 7,245 — 7,245 — Loans held for sale 5,676 5,676 — — Interest rate derivatives 1,333 — 1,333 — LIABILITIES Interest rate derivatives $ 1,333 $ — $ 1,333 $ — (Amounts in thousands) Fair Value Measurements at December 31, 2018 Using Description December 31, 2018 Level 1 Level 2 Level 3 ASSETS U.S. Government agencies and corporations $ 9,002 $ — $ 9,002 $ — Obligations of states and political subdivisions 51,658 — 51,658 — U.S. Government-sponsored mortgage-backed securities 56,587 — 56,587 — U.S. Government-sponsored collateralized mortgage obligations 11,976 — 11,976 — U.S. Government-guaranteed small business administration pools 7,700 — 7,700 — Loans held for sale 1,040 1,040 — — Interest rate derivatives 92 — 92 — LIABILITIES Interest rate derivatives $ 92 $ — $ 92 $ —
Changes in the Level 3 Fair Value Category	The following tables present the changes in the Level 3 fair value category for the three and six months ended June 30, 2019 and 2018. The Company classifies financial instruments in Level 3 of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Trust preferred securities Trust preferred securities Trust preferred securities Trust preferred securities Beginning balance $ — $ 1,090 $ — $ 895 Net realized/unrealized losses included in: Noninterest income — — — — Other comprehensive income (loss) — 528 — 723 Discount accretion (premium amortization) — — — — Sales — (1,618 ) — (1,618 ) Purchases, issuance, and settlements — — — — Ending balance $ — $ — $ — $ — Losses included in net income for the period relating to assets held at period end $ — $ — $ — $ —
Carrying Amounts and Fair Values of the Company's Financial Instruments	The carrying amounts and fair values of the Company’s financial instruments are as follows: (Amounts in thousands) June 30, 2019 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 24,239 $ 24,239 $ — $ — $ 24,239 Investment securities available-for-sale 136,236 — 136,236 — 136,236 Loans held for sale 5,676 5,676 — — 5,676 Loans 473,461 — — 478,885 478,885 Bank-owned life insurance 15,518 15,518 — — 15,518 Accrued interest receivable 2,290 2,290 — — 2,290 Interest rate derivatives 1,333 — 1,333 — 1,333 LIABILITIES: Demand, savings and money market deposits $ 438,686 $ 438,686 $ — $ — $ 438,686 Time deposits 138,228 — — 139,544 139,544 Securities sold under agreements to repurchase 1,675 1,675 — — 1,675 Federal Home Loan Bank advances - short term 6,000 — — 5,998 5,998 Federal Home Loan Bank advances - long term 16,000 — — 16,052 16,052 Subordinated debt 5,155 — — 4,743 4,743 Accrued interest payable 563 563 — — 563 Interest rate derivatives 1,333 — 1,333 — 1,333 (Amounts in thousands) December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Fair Value ASSETS: Cash and cash equivalents $ 19,692 $ 19,692 $ — $ — $ 19,692 Investment securities available-for-sale 136,923 — 136,923 — 136,923 Loans held for sale 1,040 1,040 — — 1,040 Loans 510,194 — — 513,103 513,103 Bank-owned life insurance 15,711 15,711 — — 15,711 Accrued interest receivable 2,255 2,255 — — 2,255 Interest rate derivatives 92 — 92 — 92 LIABILITIES: Demand, savings and money market deposits $ 483,054 $ 483,054 $ — $ — $ 483,054 Time deposits 121,365 — — 122,295 122,295 Short term borrowings 2,206 2,206 — — 2,206 Federal Home Loan Bank advances - short term 12,000 — — 11,987 11,987 Federal Home Loan Bank advances - long term 16,000 — — 15,880 15,880 Subordinated debt 5,155 — — 4,620 4,620 Accrued interest payable 371 371 — — 371 Interest rate derivatives 92 — 92 — 92
Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis	The following table presents quantitative information about the Level 3 significant inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at June, 30 2019. There were no such Level 3 measurements at December 31, 2018. (Amounts in thousands) Fair value at June 30, 2019 Valuation Technique Significant Unobservable Input Range of Inputs Impaired loans $ 405 Appraisal of Collateral Appraisal Adjustments (76)% Liquidation Expenses (10)%

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Loss	The following table presents the changes in accumulated other comprehensive loss by component net of tax for the three and six months ended June 30, 2019 and 2018: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Unrealized gains (losses) on available- for-sale securities (a) Change in pension and postretirement obligations (a) Unrealized gains (losses) on available- for-sale securities (a) Change in pension and postretirement obligations (a) Unrealized gains (losses) on available- for-sale securities (a) Change in pension and postretirement obligations (a) Unrealized gains (losses) on available- for-sale securities (a) Change in pension and postretirement obligations (a) Beginning balance $ (1,815 ) $ 37 $ (4,144 ) $ (46 ) $ (3,686 ) $ 30 $ (1,787 ) $ (38 ) Other comprehensive income (loss) before reclassification 1,597 7 (67 ) 111 3,468 14 (2,408 ) 103 Amount reclassified from accumulated other comprehensive loss 35 — 33 — 35 — 17 — Total other comprehensive income (loss) 1,632 7 (34 ) 111 3,503 14 (2,391 ) 103 Ending balance $ (183 ) $ 44 $ (4,178 ) $ 65 $ (183 ) $ 44 $ (4,178 ) $ 65 (a) All amounts are net of tax. Amounts in parentheses indicate debits.
Schedule of Reclassifications out of Each Component of Accumulated Other Comprehensive Income (Loss)	The following table presents significant amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2019 and 2018: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Amount reclassified from accumulated other comprehensive income (a) Amount reclassified from accumulated other comprehensive loss (a) Amount reclassified from accumulated other comprehensive income (a) Amount reclassified from accumulated other comprehensive loss (a) Affected line item in the statement where net income is presented Details about other comprehensive income or loss: Unrealized gains on available- for-sale securities $ (44 ) $ (41 ) $ (44 ) $ (21 ) Investment securities available-for-sale losses, net 9 8 9 4 Federal income tax expense $ (35 ) $ (33 ) $ (35 ) $ (17 ) (a) Amounts in parentheses indicate debits to net income.

Post-Retirement Obligations (Ta

Post-Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]
Changes in Accumulated Liability	The following table presents the changes in the accumulated liability: (Amounts in thousands) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Beginning balance $ 823 $ 890 $ 831 $ 876 Expense recorded (1 ) 5 (2 ) 11 Other comprehensive loss (income) recorded (7 ) (111 ) (14 ) (103 ) Ending balance $ 815 $ 784 $ 815 $ 784

Securities Sold Under Agreeme_2

Securities Sold Under Agreements to Repurchase (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Additional Detail Regarding Repurchase Agreements	The following table provides additional detail regarding repurchase agreements: (Amounts in thousands) Repurchase Agreements (Sweep) Accounted for as Secured Borrowings At June 30, 2019 At December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Overnight and Continuous Repurchase agreements: U.S. Government-sponsored mortgage-backed securities $ 3,047 $ 3,066 Total collateral carrying value $ 3,047 $ 3,066 Total repurchase agreements $ 1,675 $ 2,206

Equity Compensation (Tables)

Equity Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Omnibus Equity Plan
Schedule of Nonvested Restricted Stock Units Activity	The following is the activity under the Omnibus Equity Plan during the six months ended June 30, 2019: Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2019 23,591 $ 19.67 Granted 30,156 22.58 Vested (26,821 ) 20.81 Forfeited — — Nonvested at June 30, 2019 26,926 $ 21.79

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Summary of Other Information Related To Operating Leases	The following table summarizes other information related to our operating leases: June 30, 2019 Weighted-average remaining lease term-operating leases in years 15.83 Weighted-average discount rate - operating leases 3.14 %
Schedule of Aggregate Lease Maturities And Obligations	The following table presents aggregate lease maturities and obligations as of June 30, 2019: (Amounts in thousands) June 30, 2019 2019 $ 124 2020 231 2021 155 2022 155 2023 157 2024 and thereafter 1,666 Total lease payments 2,488 Less: interest 496 Present value of lease liabilities $ 1,992

Authoritative Accounting Guid_3

Authoritative Accounting Guidance (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease right-of-use asset	$ 2,000
Operating lease liability	$ 1,992
ASU 2016-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease right-of-use asset		$ 2,100
Operating lease liability		$ 2,100

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	$ 136,468	$ 141,589
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains	1,028	78
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses	1,260	4,744
Available-for-sale securities and Regulatory Stock, Fair Value	136,236	136,923
U.S. Government agencies and corporations
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	3,347	9,242
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains	1	11
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses	4	251
Available-for-sale securities and Regulatory Stock, Fair Value	3,344	9,002
Obligations of states and political subdivisions
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	66,057	53,187
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains	911	26
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses	100	1,555
Available-for-sale securities and Regulatory Stock, Fair Value	66,868	51,658
U.S. Government-sponsored mortgage-backed securities
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	49,421	59,070
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains	21
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses	1,014	2,483
Available-for-sale securities and Regulatory Stock, Fair Value	48,428	56,587
U.S. Government-sponsored collateralized mortgage obligations
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	10,316	12,112
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Gains	95	41
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses	60	177
Available-for-sale securities and Regulatory Stock, Fair Value	10,351	11,976
U.S. Government-guaranteed small business administration pools
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	7,327	7,978
Available-for-sale Securities and Regulatory Stock, Gross Unrealized Losses	82	278
Available-for-sale securities and Regulatory Stock, Fair Value	7,245	7,700
Federal Home Loan Bank (FHLB) stock
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	2,609	2,355
Available-for-sale securities and Regulatory Stock, Fair Value	2,609	2,355
Federal Reserve Bank (FRB) stock
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	226	226
Available-for-sale securities and Regulatory Stock, Fair Value	226	226
Total regulatory stock
Summary of investment securities
Available-for-sale Securities and Regulatory Stock, Amortized Cost	2,835	2,581
Available-for-sale securities and Regulatory Stock, Fair Value	$ 2,835	$ 2,581

Investment Securities (Details

Investment Securities (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Amortized cost and fair value of debt securities by contractual maturity
Amortized Cost, Due after one year through five years	$ 482
Amortized Cost, Due after five years through ten years	5,705
Amortized Cost, Due after ten years	70,544
Amortized Cost, Total	76,731
Total investment securities available for sale, Amortized Cost	136,468	$ 141,589
Fair Value, Due after one year through five years	490
Fair Value, Due after five years through ten years	5,687
Fair Value, Due after ten years	71,280
Fair Value, Total	77,457
Total investment securities available for sale, Fair Value	136,236	$ 136,923
U.S. Government-sponsored mortgage-backed and related securities
Amortized cost and fair value of debt securities by contractual maturity
Total investment securities available for sale, Amortized Cost	59,737
Total investment securities available for sale, Fair Value	$ 58,779

Investment Securities (Detail_2

Investment Securities (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Proceeds, gains and losses realized on securities sold or called
Proceeds on securities sold	$ 13,622	$ 1,577	$ 13,622	$ 21,418
Gross realized gains	82		82	123
Gross realized losses	$ 126	$ 41	$ 126	$ 144

Investment Securities (Detail_3

Investment Securities (Details Textual) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2019USD ($)Security	Dec. 31, 2018USD ($)Security
Investments Debt And Equity Securities [Abstract]
Carrying value of investment securities for pledge | $	$ 60.3	$ 55.1
Investment securities with fair value less than amortized cost | Security	53	121

Investment Securities (Detail_4

Investment Securities (Details 3) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value
Fair Value, Less than 12 Months	$ 4,502	$ 28,494
Fair Value, 12 Months or More	69,739	95,401
Fair Value, Total	74,241	123,895
Unrealized Losses
Unrealized Losses, Less than 12 Months	7	591
Unrealized Losses, 12 Months or More	1,253	4,153
Unrealized Losses, Total	1,260	4,744
U.S. Government agencies and corporations
Fair Value
Fair Value, Less than 12 Months		3,280
Fair Value, 12 Months or More	2,996	2,755
Fair Value, Total	2,996	6,035
Unrealized Losses
Unrealized Losses, Less than 12 Months		6
Unrealized Losses, 12 Months or More	4	245
Unrealized Losses, Total	4	251
Obligations of states and political subdivisions
Fair Value
Fair Value, Less than 12 Months	4,502	23,616
Fair Value, 12 Months or More	8,351	24,607
Fair Value, Total	12,853	48,223
Unrealized Losses
Unrealized Losses, Less than 12 Months	7	567
Unrealized Losses, 12 Months or More	93	988
Unrealized Losses, Total	100	1,555
U.S. Government-sponsored mortgage-backed securities
Fair Value
Fair Value, Less than 12 Months		1,598
Fair Value, 12 Months or More	46,806	54,989
Fair Value, Total	46,806	56,587
Unrealized Losses
Unrealized Losses, Less than 12 Months		18
Unrealized Losses, 12 Months or More	1,014	2,465
Unrealized Losses, Total	1,014	2,483
U.S. Government-sponsored collateralized mortgage obligations
Fair Value
Fair Value, 12 Months or More	4,341	5,350
Fair Value, Total	4,341	5,350
Unrealized Losses
Unrealized Losses, 12 Months or More	60	177
Unrealized Losses, Total	60	177
U.S. Government-guaranteed small business administration pools
Fair Value
Fair Value, 12 Months or More	7,245	7,700
Fair Value, Total	7,245	7,700
Unrealized Losses
Unrealized Losses, 12 Months or More	82	278
Unrealized Losses, Total	$ 82	$ 278

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Composition of the loan portfolio
Total loans	$ 477,946	$ 514,392
Commercial
Composition of the loan portfolio
Total loans	$ 71,883	$ 112,440
Percentage of loans	15.10%	21.90%
Commercial real estate
Composition of the loan portfolio
Total loans	$ 287,300	$ 303,804
Percentage of loans	60.10%	59.00%
Residential real estate
Composition of the loan portfolio
Total loans	$ 89,897	$ 69,845
Percentage of loans	18.80%	13.60%
Consumer | Home equity
Composition of the loan portfolio
Total loans	$ 25,391	$ 25,076
Percentage of loans	5.30%	4.90%
Consumer | Other
Composition of the loan portfolio
Total loans	$ 3,475	$ 3,227
Percentage of loans	0.70%	0.60%

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses (Details 1)	6 Months Ended
	Jun. 30, 2019
Factor Considered:
Levels of and trends in charge-offs, classifications and non-accruals	Decreasing
Trends in volume and terms	Stable
Changes in lending policies and procedures	Stable
Experience, depth and ability of management, including loan review function	Stable
Economic trends, including valuation of underlying collateral	Stable
Concentrations of credit	Decreasing

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses (Details 2)	6 Months Ended
	Jun. 30, 2019
Factor Considered:
Levels and trends in classification	Stable
Declining trends in financial performance	Stable
Structure and lack of performance measures	Stable
Migration between risk categories	Stable

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Analysis of changes in the allowance for loan losses
Balance at beginning of period	$ 4,340	$ 3,884	$ 4,198	$ 4,578
Loan charge-offs	(51)	(27)	(138)	(1,240)
Recoveries	16	163	70	182
Net loan recoveries (charge-offs)	(35)	136	(68)	(1,058)
Provision charged to operations	180	75	355	575
Balance at end of period	4,485	4,095	4,485	4,095
Commercial
Analysis of changes in the allowance for loan losses
Balance at beginning of period	1,578	1,334	1,232	1,591
Loan charge-offs				(1,163)
Recoveries			28
Net loan recoveries (charge-offs)			28	(1,163)
Provision charged to operations	139	60	457	966
Balance at end of period	1,717	1,394	1,717	1,394
Commercial real estate
Analysis of changes in the allowance for loan losses
Balance at beginning of period	2,201	2,290	2,414	2,702
Recoveries		150		150
Net loan recoveries (charge-offs)		150		150
Provision charged to operations	(36)	17	(249)	(395)
Balance at end of period	2,165	2,457	2,165	2,457
Residential real estate
Analysis of changes in the allowance for loan losses
Balance at beginning of period	320	93	314	117
Loan charge-offs			(29)
Recoveries		1		1
Net loan recoveries (charge-offs)		1	(29)	1
Provision charged to operations	48	(14)	83	(38)
Balance at end of period	368	80	368	80
Consumer | Home equity
Analysis of changes in the allowance for loan losses
Balance at beginning of period	114	67	115	70
Recoveries	1	1	1	4
Net loan recoveries (charge-offs)	1	1	1	4
Provision charged to operations	(17)	(2)	(18)	(8)
Balance at end of period	98	66	98	66
Consumer | Other
Analysis of changes in the allowance for loan losses
Balance at beginning of period	127	100	123	98
Loan charge-offs	(51)	(27)	(109)	(77)
Recoveries	15	11	41	27
Net loan recoveries (charge-offs)	(36)	(16)	(68)	(50)
Provision charged to operations	46	14	82	50
Balance at end of period	$ 137	$ 98	$ 137	$ 98

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 579
Collectively evaluated for impairment	3,906		$ 4,198
Total ending allowance balance	4,485	$ 4,340	4,198	$ 4,095	$ 3,884	$ 4,578
Loan Portfolio:
Individually evaluated for impairment	8,238		9,704
Collectively evaluated for impairment	469,708		504,688
Total ending loans balance	477,946		514,392
Commercial
Ending allowance balance attributable to loans:
Individually evaluated for impairment	579
Collectively evaluated for impairment	1,138		1,232
Total ending allowance balance	1,717	1,578	1,232	1,394	1,334	1,591
Loan Portfolio:
Individually evaluated for impairment	5,052		5,364
Collectively evaluated for impairment	66,831		107,076
Total ending loans balance	71,883		112,440
Commercial real estate
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	2,165		2,414
Total ending allowance balance	2,165	2,201	2,414	2,457	2,290	2,702
Loan Portfolio:
Individually evaluated for impairment	3,186		4,340
Collectively evaluated for impairment	284,114		299,464
Total ending loans balance	287,300		303,804
Residential real estate
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	368		314
Total ending allowance balance	368	320	314	80	93	117
Loan Portfolio:
Collectively evaluated for impairment	89,897		69,845
Total ending loans balance	89,897		69,845
Consumer | Home equity
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	98		115
Total ending allowance balance	98	114	115	66	67	70
Loan Portfolio:
Collectively evaluated for impairment	25,391		25,076
Total ending loans balance	25,391		25,076
Consumer | Other
Ending allowance balance attributable to loans:
Collectively evaluated for impairment	137		123
Total ending allowance balance	137	$ 127	123	$ 98	$ 100	$ 98
Loan Portfolio:
Collectively evaluated for impairment	3,475		3,227
Total ending loans balance	$ 3,475		$ 3,227

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses (Details Textual)	3 Months Ended	6 Months Ended
	Jun. 30, 2019Loan	Jun. 30, 2019USD ($)LoanBorrower	Jun. 30, 2018Contract	Dec. 31, 2017USD ($)
Accounts Notes And Loans Receivable [Line Items]
Reserve previously allocated to loans				$ 625,000
Period after which loans considered nonperforming		90 days
Number of loans modified as TDRs	0	0	7
Number of commercial loan borrowers | Borrower		1
Commercial
Accounts Notes And Loans Receivable [Line Items]
Decrease in commercial loan balances		$ 40,900,000
Financing receivables, maturity		First quarter of 2019
Charge off amount recorded as loan discount		$ 1,100,000
Number of loans modified as TDRs | Contract			7

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Summary of credit quality indicators by internally assigned grade
Total loans	$ 477,946	$ 514,392
Commercial
Summary of credit quality indicators by internally assigned grade
Total loans	71,883	112,440
Commercial | Pass
Summary of credit quality indicators by internally assigned grade
Total loans	54,777	94,316
Commercial | Special Mention
Summary of credit quality indicators by internally assigned grade
Total loans	6,370	6,914
Commercial | Substandard
Summary of credit quality indicators by internally assigned grade
Total loans	10,736	11,210
Commercial real estate
Summary of credit quality indicators by internally assigned grade
Total loans	287,300	303,804
Commercial real estate | Pass
Summary of credit quality indicators by internally assigned grade
Total loans	257,781	271,370
Commercial real estate | Special Mention
Summary of credit quality indicators by internally assigned grade
Total loans	25,687	25,199
Commercial real estate | Substandard
Summary of credit quality indicators by internally assigned grade
Total loans	$ 3,832	$ 7,235

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Summary of consumer credit exposure
Total loans	$ 477,946	$ 514,392
Residential real estate
Summary of consumer credit exposure
Total loans	89,897	69,845
Consumer | Home equity
Summary of consumer credit exposure
Total loans	25,391	25,076
Consumer | Other
Summary of consumer credit exposure
Total loans	3,475	3,227
Performing | Residential real estate
Summary of consumer credit exposure
Total loans	89,638	69,535
Performing | Consumer | Home equity
Summary of consumer credit exposure
Total loans	25,265	24,956
Performing | Consumer | Other
Summary of consumer credit exposure
Total loans	3,475	3,227
Nonperforming | Residential real estate
Summary of consumer credit exposure
Total loans	259	310
Nonperforming | Consumer | Home equity
Summary of consumer credit exposure
Total loans	$ 126	$ 120

Loans and Allowance for Loan_11

Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Summary of classes of loans on non-accrual status
Total	$ 2,444	$ 2,233
Commercial
Summary of classes of loans on non-accrual status
Total	1,468	1,291
Commercial real estate
Summary of classes of loans on non-accrual status
Total	591	512
Residential real estate
Summary of classes of loans on non-accrual status
Total	259	310
Consumer | Home equity
Summary of classes of loans on non-accrual status
Total	$ 126	$ 120

Loans and Allowance for Loan_12

Loans and Allowance for Loan Losses (Details 8) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019Loan	Jun. 30, 2019Loan	Jun. 30, 2018USD ($)Contract
Information related to loans modified in a TDR
Number of contracts	0	0	7
Pre-modification recorded investment			$ 5,373
Post-modification recorded investment			$ 4,210
Commercial
Information related to loans modified in a TDR
Number of contracts | Contract			7
Pre-modification recorded investment			$ 5,373
Post-modification recorded investment			$ 4,210

Loans and Allowance for Loan_13

Loans and Allowance for Loan Losses (Details 9) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Aging analysis of the recorded investment of past due loans
Total Past Due	$ 2,674	$ 2,130
Current	475,272	512,262
Total ending loans balance	477,946	514,392
30-59 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due	575	67
60-89 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due	983	323
90 Days Or Greater
Aging analysis of the recorded investment of past due loans
Total Past Due	1,116	1,740
Commercial
Aging analysis of the recorded investment of past due loans
Total Past Due	1,533	1,305
Current	70,350	111,135
Total ending loans balance	71,883	112,440
Commercial | 30-59 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due	65	14
Commercial | 60-89 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due	983
Commercial | 90 Days Or Greater
Aging analysis of the recorded investment of past due loans
Total Past Due	485	1,291
Commercial real estate
Aging analysis of the recorded investment of past due loans
Total Past Due	262	167
Current	287,038	303,637
Total ending loans balance	287,300	303,804
Commercial real estate | 90 Days Or Greater
Aging analysis of the recorded investment of past due loans
Total Past Due	262	167
Residential real estate
Aging analysis of the recorded investment of past due loans
Total Past Due	718	475
Current	89,179	69,370
Total ending loans balance	89,897	69,845
Residential real estate | 30-59 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due	475	36
Residential real estate | 60-89 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due		182
Residential real estate | 90 Days Or Greater
Aging analysis of the recorded investment of past due loans
Total Past Due	243	257
Consumer | Home equity
Aging analysis of the recorded investment of past due loans
Total Past Due	151	166
Current	25,240	24,910
Total ending loans balance	25,391	25,076
Consumer | Home equity | 30-59 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due	25
Consumer | Home equity | 60-89 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due		141
Consumer | Home equity | 90 Days Or Greater
Aging analysis of the recorded investment of past due loans
Total Past Due	126	25
Consumer | Other
Aging analysis of the recorded investment of past due loans
Total Past Due	10	17
Current	3,465	3,210
Total ending loans balance	3,475	3,227
Consumer | Other | 30-59 Days Past Due
Aging analysis of the recorded investment of past due loans
Total Past Due	$ 10	$ 17

Loans and Allowance for Loan_14

Loans and Allowance for Loan Losses (Details 10) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Commercial
Loans evaluated for impairment by loan segment
Recorded Investment, With no related allowance recorded	$ 4,068		$ 4,068		$ 5,364
Recorded Investment, With related allowance recorded	984		984
Recorded Investment, Total	5,052		5,052		5,364
Unpaid Principal Balance, with no related allowance	5,047		5,047		6,411
Unpaid Principal Balance, with related allowance	984		984
Unpaid Principal Balance, Total	6,031		6,031		6,411
Related Allowance, with related allowance	579		579
Related Allowance, Total	579		579
Average Recorded Investment, with no related allowance recorded	4,158	$ 4,615	4,555	$ 3,041
Average Recorded Investment, with related allowance recorded	989		661	1,821
Average Recorded Investment, Total	5,147	4,615	5,216	4,862
Interest Income Recognized, with no related allowance	71	8	219	11
Interest Income Recognized, with related allowance				46
Interest Income Recognized, Total	71	8	219	57
Commercial real estate
Loans evaluated for impairment by loan segment
Recorded Investment, With no related allowance recorded	3,186		3,186		4,340
Recorded Investment, Total	3,186		3,186		4,340
Unpaid Principal Balance, with no related allowance	3,186		3,186		4,340
Unpaid Principal Balance, Total	3,186		3,186		$ 4,340
Average Recorded Investment, with no related allowance recorded	3,219	4,180	3,211	4,360
Average Recorded Investment, Total	3,219	4,180	3,211	4,360
Interest Income Recognized, with no related allowance	48	104	111	212
Interest Income Recognized, Total	$ 48	$ 104	$ 111	$ 212

Earnings Per Share and Capita_3

Earnings Per Share and Capital Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Computation of basic earnings per common share
Net income	$ 1,328	$ 3,302	$ 3,433	$ 4,839
Weighted average common shares outstanding	4,346,763	4,369,792	4,336,804	4,381,540
Net effect of dilutive common share equivalents	4,721	4,010	6,963	6,128
Adjusted average shares outstanding-dilutive	4,351,484	4,373,802	4,343,767	4,387,668
Basic earnings per share	$ 0.30	$ 0.75	$ 0.79	$ 1.10
Diluted earnings per share	$ 0.30	$ 0.75	$ 0.79	$ 1.10

Subordinated Debt (Details Text

Subordinated Debt (Details Textual) - USD ($)	1 Months Ended	6 Months Ended
	Jul. 31, 2007	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Floating rate trust preferred securities issued	$ 5,000,000
Maturity date of floating rate trust preferred securities	2037-12
Investment in common securities issued by trust	$ 155,000
Subordinated Debt
Debt Instrument [Line Items]
Interest rate description		3-month LIBOR rate plus 1.45%
LIBOR Rate Points	1.45%
Interest rate		3.86%	4.24%

Commitments (Details)

Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Commitments to extend credit:
Fixed rate	$ 31,756	$ 31,225
Variable rate	81,868	74,050
Standby letters of credit	$ 3,560	$ 3,455

Commitments (Details 1)

Commitments (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Summary of overdraft protection
Overdraft protection available on depositors' accounts	$ 8,382	$ 8,708
Balance of overdrafts included in loans	87	116
Average daily balance of overdrafts	$ 107	$ 104
Average daily balance of overdrafts as a percentage of available	1.28%	1.19%

Commitments (Details Textual)

Commitments (Details Textual) - Third party interest rate swap $ in Millions	Jun. 30, 2019USD ($)Security
Commitments (Textual) [Abstract]
Security pledged for collateral | $	$ 1.6
U.S. Government-sponsored mortgage-backed securities
Commitments (Textual) [Abstract]
Number of security owned and pledged as collateral | Security	1

Commitments (Details 2)

Commitments (Details 2) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Customer interest rate swap, Maturing in 2020
Derivative [Line Items]
Maturity	2020
Notional Amount	$ 2,362,000	$ 2,410,000
Interest Rate Paid	1 Mo. Libor + Margin
Interest Rate Received	Fixed
Fair Value	$ 2,000	(30,000)
Customer interest rate swap, Maturing in 2025
Derivative [Line Items]
Maturity	2025
Notional Amount	$ 4,745,000	4,930,000
Interest Rate Paid	1 Mo. Libor + Margin
Interest Rate Received	Fixed
Fair Value	$ 135,000	(28,000)
Customer interest rate swap, Maturing in 2026
Derivative [Line Items]
Maturity	2026
Notional Amount	$ 1,884,000	1,946,000
Interest Rate Paid	1 Mo. Libor + Margin
Interest Rate Received	Fixed
Fair Value	$ 14,000	(64,000)
Customer interest rate swap, Maturing in 2027
Derivative [Line Items]
Maturity	2027
Notional Amount	$ 13,578,000	13,790,000
Interest Rate Paid	1 Mo. Libor + Margin
Interest Rate Received	Fixed
Fair Value	$ 623,000	(54,000)
Customer interest rate swap, Maturing in 2028
Derivative [Line Items]
Maturity	2028
Notional Amount	$ 6,233,000	6,395,000
Interest Rate Paid	1 Mo. Libor + Margin
Interest Rate Received	Fixed
Fair Value	$ 559,000	268,000
Customer interest rate swap
Derivative [Line Items]
Notional Amount	28,802,000	29,471,000
Fair Value	$ 1,333,000	92,000
Third party interest rate swap, Maturing in 2020
Derivative [Line Items]
Maturity	2020
Notional Amount	$ 2,362,000	2,410,000
Interest Rate Paid	Fixed
Interest Rate Received	1 Mo. Libor + Margin
Fair Value	$ (2,000)	30,000
Third party interest rate swap, Maturing in 2025
Derivative [Line Items]
Maturity	2025
Notional Amount	$ 4,745,000	4,930,000
Interest Rate Paid	Fixed
Interest Rate Received	1 Mo. Libor + Margin
Fair Value	$ (135,000)	28,000
Third party interest rate swap, Maturing in 2026
Derivative [Line Items]
Maturity	2026
Notional Amount	$ 1,884,000	1,946,000
Interest Rate Paid	Fixed
Interest Rate Received	1 Mo. Libor + Margin
Fair Value	$ (14,000)	64,000
Third party interest rate swap, Maturing in 2027
Derivative [Line Items]
Maturity	2027
Notional Amount	$ 13,578,000	13,790,000
Interest Rate Paid	Fixed
Interest Rate Received	1 Mo. Libor + Margin
Fair Value	$ (623,000)	54,000
Third party interest rate swap, Maturing in 2028
Derivative [Line Items]
Maturity	2028
Notional Amount	$ 6,233,000	6,395,000
Interest Rate Paid	Fixed
Interest Rate Received	1 Mo. Libor + Margin
Fair Value	$ (559,000)	(268,000)
Third party interest rate swap
Derivative [Line Items]
Notional Amount	28,802,000	29,471,000
Fair Value	$ (1,333,000)	$ (92,000)

Commitments (Details 3)

Commitments (Details 3) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivatives Fair Value [Line Items]
Assets, Fair Value	$ 1,333	$ 92
Liabilities, Fair Value	1,333	92
Other assets
Derivatives Fair Value [Line Items]
Assets, Fair Value	1,333	92
Other liabilities
Derivatives Fair Value [Line Items]
Liabilities, Fair Value	$ 1,333	$ 92

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Investment securities available-for-sale, fair value	$ 136,236	$ 136,923
Loans held for sale	5,676	1,040
Interest rate derivatives	1,333	92
LIABILITIES
Liabilities, Fair Value	1,333	92
Level 2
ASSETS
Investment securities available-for-sale, fair value	136,236	136,923
Interest rate derivatives	1,333	92
LIABILITIES
Liabilities, Fair Value	1,333	92
Fair Value, Measurements, Recurring
ASSETS
Loans held for sale	5,676	1,040
Interest rate derivatives	1,333	92
LIABILITIES
Liabilities, Fair Value	1,333	92
Fair Value, Measurements, Recurring | Level 1
ASSETS
Loans held for sale	5,676	1,040
Fair Value, Measurements, Recurring | Level 2
ASSETS
Interest rate derivatives	1,333	92
LIABILITIES
Liabilities, Fair Value	1,333	92
Fair Value, Measurements, Recurring | U.S. Government agencies and corporations
ASSETS
Investment securities available-for-sale, fair value	3,344	9,002
Fair Value, Measurements, Recurring | U.S. Government agencies and corporations | Level 2
ASSETS
Investment securities available-for-sale, fair value	3,344	9,002
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions
ASSETS
Investment securities available-for-sale, fair value	66,868	51,658
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | Level 2
ASSETS
Investment securities available-for-sale, fair value	66,868	51,658
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities
ASSETS
Investment securities available-for-sale, fair value	48,428	56,587
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | Level 2
ASSETS
Investment securities available-for-sale, fair value	48,428	56,587
Fair Value, Measurements, Recurring | U.S. Government-sponsored collateralized mortgage obligations
ASSETS
Investment securities available-for-sale, fair value	10,351	11,976
Fair Value, Measurements, Recurring | U.S. Government-sponsored collateralized mortgage obligations | Level 2
ASSETS
Investment securities available-for-sale, fair value	10,351	11,976
Fair Value, Measurements, Recurring | U.S. Government-guaranteed small business administration pools
ASSETS
Investment securities available-for-sale, fair value	7,245	7,700
Fair Value, Measurements, Recurring | U.S. Government-guaranteed small business administration pools | Level 2
ASSETS
Investment securities available-for-sale, fair value	$ 7,245	$ 7,700

Fair Value of Assets and Liab_4

Fair Value of Assets and Liabilities (Details 1) - Trust preferred securities - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Changes in the Level 3 fair value category
Beginning balance	$ 1,090	$ 895
Net realized/unrealized losses included in:
Other comprehensive income (loss)	528	723
Sales	$ (1,618)	$ (1,618)

Fair Value of Assets and Liab_5

Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents, carrying value	$ 24,239	$ 19,692	$ 10,977	$ 19,125
Investment securities available-for-sale, carrying value	136,236	136,923
Loans held for sale	5,676	1,040
Loans, carrying value	473,461	510,194
Bank-owned life insurance	15,518	15,711
Accrued interest receivable, carrying value	2,290	2,255
Interest rate derivative assets, carrying value	1,333	92
LIABILITIES
Demand, savings and money market deposits, carrying value	438,686	483,054
Time deposits, carrying value	138,228	121,365
Securities sold under agreements to repurchase	1,675	2,206
Short term borrowings		2,206
Federal Home Loan Bank advances - short term	6,000	12,000
Federal Home Loan Bank advances - long term	16,000	16,000
Subordinated debt, carrying value	5,155	5,155
Accrued interest payable, carrying value	563	371
Interest rate derivative liabilities, carrying value	1,333	92
ASSETS:
Cash and cash equivalents, fair value	24,239	19,692
Investment securities available-for-sale, fair value	136,236	136,923
Loans held for sale, fair value	5,676	1,040
Loans, fair value	478,885	513,103
Bank-owned life insurance, fair value	15,518	15,711
Accrued interest receivable, fair value	2,290	2,255
Interest rate derivative assets, fair value	1,333	92
LIABILITIES:
Demand, savings and money market deposits, fair value	438,686	483,054
Time deposits, fair value	139,544	122,295
Securities sold under agreements to repurchase, fair value	1,675
Short-term borrowings, fair value		2,206
Federal Home Loan Bank advances - short term, fair value	5,998	11,987
Federal Home Loan Bank advances - long term, fair value	16,052	15,880
Subordinated debt, fair value	4,743	4,620
Accrued interest payable, fair value	563	371
Interest rate derivative liabilities, fair value	1,333	92
Level 1
ASSETS:
Cash and cash equivalents, fair value	24,239	19,692
Loans held for sale, fair value	5,676	1,040
Bank-owned life insurance, fair value	15,518	15,711
Accrued interest receivable, fair value	2,290	2,255
LIABILITIES:
Demand, savings and money market deposits, fair value	438,686	483,054
Securities sold under agreements to repurchase, fair value	1,675
Short-term borrowings, fair value		2,206
Accrued interest payable, fair value	563	371
Level 2
ASSETS:
Investment securities available-for-sale, fair value	136,236	136,923
Interest rate derivative assets, fair value	1,333	92
LIABILITIES:
Interest rate derivative liabilities, fair value	1,333	92
Level 3
ASSETS:
Loans, fair value	478,885	513,103
LIABILITIES:
Time deposits, fair value	139,544	122,295
Federal Home Loan Bank advances - short term, fair value	5,998	11,987
Federal Home Loan Bank advances - long term, fair value	16,052	15,880
Subordinated debt, fair value	$ 4,743	$ 4,620

Fair Value of Assets and Liab_6

Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis
Investment securities available-for-sale, fair value	$ 136,236	$ 136,923
Impaired Loans
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis
Fair value input appraisal adjustments	(76.00%)
Fair value inputs liquidation expenses	(10.00%)
Impaired Loans | Appraisal Of Collateral
Significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis
Investment securities available-for-sale, fair value	$ 405

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Beginning balance				$ 64,918
Total other comprehensive income (loss)		$ 1,639	$ 77	3,517	$ (2,288)
Ending balance		71,164	61,824	71,164	61,824
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Beginning balance	[1]	(1,815)	(4,144)	(3,686)	(1,787)
Other comprehensive income (loss) before reclassification	[1]	1,597	(67)	3,468	(2,408)
Amount reclassified from accumulated other comprehensive loss	[1]	35	33	35	17
Total other comprehensive income (loss)	[1]	1,632	(34)	3,503	(2,391)
Ending balance	[1]	(183)	(4,178)	(183)	(4,178)
Accumulated Defined Benefit Plans Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Beginning balance	[1]	37	(46)	30	(38)
Other comprehensive income (loss) before reclassification	[1]	7	111	14	103
Total other comprehensive income (loss)	[1]	7	111	14	103
Ending balance	[1]	$ 44	$ 65	$ 44	$ 65
[1]	All amounts are net of tax. Amounts in parentheses indicate debits.

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Loss (Details 1) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Unrealized gains on available-for-sale securities
Federal income tax expense		$ (207)	$ (322)	$ (603)	$ (563)
NET INCOME		1,328	3,302	3,433	4,839
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Accumulated Net Unrealized Investment Gain (Loss)
Unrealized gains on available-for-sale securities
Investment securities available-for-sale gains, net	[1]	(44)	(41)	(44)	(21)
Federal income tax expense	[1]	9	8	9	4
NET INCOME	[1]	$ (35)	$ (33)	$ (35)	$ (17)
[1]	Amounts in parentheses indicate debits to net income.

Post-Retirement Obligations (De

Post-Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Compensation And Retirement Disclosure [Abstract]
Beginning balance	$ 823	$ 890	$ 831	$ 876
Expense recorded	(1)	5	(2)	11
Other comprehensive loss (income) recorded	(7)	(111)	(14)	(103)
Ending balance	$ 815	$ 784	$ 815	$ 784

Stock Repurchase Program (Detai

Stock Repurchase Program (Details Textual) - USD ($)	Dec. 18, 2018	Jan. 23, 2018	Jun. 30, 2019	Dec. 31, 2018	May 22, 2018
Equity Class Of Treasury Stock [Line Items]
Common stock, shares outstanding			4,378,723	4,349,624
Stock Repurchase Program on January 23, 2018
Equity Class Of Treasury Stock [Line Items]
Shares authorized to be repurchased					300,000
Percentage of shares authorized to be repurchased to common stock outstanding		2.30%
Common stock, shares outstanding		4,420,136
Stock repurchase program, remaining authorized amount			$ 6,900,000
Stock repurchase program expiration date			Dec. 31, 2018
Stock repurchase program, shares repurchased				80,944
Increase in number of shares authorized to be repurchased					200,000
Stock Repurchase Program on January 23, 2018 | Maximum
Equity Class Of Treasury Stock [Line Items]
Shares authorized to be repurchased		100,000
Stock Repurchase Program on December 18,2018
Equity Class Of Treasury Stock [Line Items]
Percentage of shares authorized to be repurchased to common stock outstanding	6.90%
Common stock, shares outstanding	4,349,624
Stock repurchase program expiration date			Dec. 31, 2019
Stock repurchase program, shares repurchased			0
Stock Repurchase Program on December 18,2018 | Maximum
Equity Class Of Treasury Stock [Line Items]
Shares authorized to be repurchased	300,000

Securities Sold Under Agreeme_3

Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Securities Sold Under Agreements To Repurchase [Line Items]
Total repurchase agreements	$ 1,675	$ 2,206
Repurchase Agreements
Securities Sold Under Agreements To Repurchase [Line Items]
Total collateral carrying value	3,047	3,066
Repurchase Agreements | U.S. Government-sponsored mortgage-backed securities
Securities Sold Under Agreements To Repurchase [Line Items]
Total collateral carrying value	$ 3,047	$ 3,066

Equity Compensation (Details Te

Equity Compensation (Details Textual) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Omnibus Equity Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized	340,000				340,000
Equity compensation expense recorded	$ 447,000		$ 52,000		$ 501,000	$ 86,000
Unrecognized compensation expense	$ 490,000				$ 490,000
Unrecognized compensation expense, expected to be recognized					11 months 27 days
Shares awarded under the plan, vesting description					Shares awarded under this plan can vest immediately and/or on the anniversary of the award date from one to three years out if the employee remains employed with Cortland Bancorp.
Omnibus Equity Plan | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares granted under the plan					30,156	12,593
Director Equity Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity compensation expense recorded		$ 0		$ 0	$ 34,000	$ 22,000
Director Equity Plan | Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares authorized	113,000				113,000
Shares granted under the plan					1,525	989
Minimum | Omnibus Equity Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period					1 year
Maximum | Omnibus Equity Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period					3 years

Equity Compensation (Details)

Equity Compensation (Details) - Omnibus Equity Plan - Restricted Stock Units - $ / shares	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Units, Nonvested, beginning balance	23,591
Units, Granted	30,156	12,593
Units, Vested	(26,821)
Units, Nonvested, ending balance	26,926
Price at Grant Date, Nonvested, beginning balance	$ 19.67
Price at Grant Date, Granted	22.58
Price at Grant Date, Vested	20.81
Price at Grant Date, Nonvested, ending balance	$ 21.79

Leases (Details Textual)

Leases (Details Textual) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend		true
Operating lease right-of-use asset	$ 2,000,000	$ 2,000,000
Operating lease liability	1,992,000	$ 1,992,000
Operating lease cost	71,000		$ 133,000
Operating cash flows from operating leases	66,000		123,000
Non-cash expense amortization of right of use asset and implicit interest	$ 5,000		$ 10,000
Minimum
Lessee Lease Description [Line Items]
Operating lease remaining lease term		5 years
Operating lease option to extend term		5 years
Maximum
Lessee Lease Description [Line Items]
Operating lease remaining lease term		10 years
Operating lease option to extend term		15 years

Leases - (Details)

Leases - (Details)	Jun. 30, 2019
Leases [Abstract]
Weighted-average remaining lease term-operating leases in years	15 years 9 months 29 days
Weighted-average discount rate - operating leases	3.14%

Leases - (Details 1)

Leases - (Details 1) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
2019	$ 124
2020	231
2021	155
2022	155
2023	157
2024 and thereafter	1,666
Total lease payments	2,488
Less: interest	496
Present value of lease liabilities	$ 1,992