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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2017	Mar. 26, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	PATHFINDER BANCORP, INC.
Entity Central Index Key	0001609065
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 66.9
Entity Common Stock, Shares Outstanding		4,292,586
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Trading Symbol	PBHC

Consolidated Statements of Condition - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS:
Cash and due from banks	$ 9,708	$ 6,968
Interest-earning deposits	12,283	15,451
Total cash and cash equivalents	21,991	22,419
Available-for-sale securities, at fair value	171,138	141,955
Held-to-maturity securities, at amortized cost (fair value of $66,426 and $54,429, respectively)	66,196	54,645
Federal Home Loan Bank stock, at cost	3,855	3,250
Loans	580,831	492,147
Less: Allowance for loan losses	7,126	6,247
Loans receivable, net	573,705	485,900
Premises and equipment, net	16,117	15,177
Accrued interest receivable	3,047	2,532
Foreclosed real estate	468	597
Intangible assets, net	182	198
Goodwill	4,536	4,536
Bank owned life insurance	11,742	11,458
Other assets	8,280	6,367
Total assets	881,257	749,034
Deposits:
Interest-bearing	633,820	535,701
Noninterest-bearing	89,783	75,282
Total deposits	723,603	610,983
Short-term borrowings	30,600	41,947
Long-term borrowings	43,288	17,000
Subordinated loans	15,059	15,025
Accrued interest payable	186	75
Other liabilities	6,377	5,643
Total liabilities	819,113	690,673
Shareholders' equity:
Common stock, par value $0.01; 25,000,000 authorized shares; 4,280,227 and 4,236,744 shares outstanding, respectively	43	43
Additional paid in capital	28,170	27,483
Retained earnings	39,020	35,619
Accumulated other comprehensive loss	(4,208)	(3,822)
Unearned ESOP	(1,214)	(1,394)
Total Pathfinder Bancorp, Inc. shareholders' equity	61,811	57,929
Noncontrolling interest	333	432
Total equity	62,144	58,361
Total liabilities and shareholders' equity	$ 881,257	$ 749,034

Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS:
Held-to-maturity securities at fair value	$ 66,426	$ 54,429
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares outstanding (in shares)	4,280,227	4,236,744

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Interest and dividend income:
Loans, including fees	$ 24,392	$ 20,703
Debt securities:
Taxable	3,598	2,327
Tax-exempt	1,038	865
Dividends	229	134
Federal funds sold and interest earning deposits	156	64
Total interest and dividend income	29,413	24,093
Interest expense:
Interest on deposits	3,904	2,441
Interest on short-term borrowings	997	301
Interest on long-term borrowings	595	270
Interest on subordinated loans	794	792
Total interest expense	6,290	3,804
Net interest income	23,123	20,289
Provision for loan losses	1,769	953
Net interest income after provision for loan losses	21,354	19,336
Noninterest income:
Service charges on deposit accounts	1,130	1,141
Earnings and gain on bank owned life insurance	284	307
Loan servicing fees	149	138
Net gains on sales and redemptions of investment securities	489	594
Net gains (losses) on sales of loans and foreclosed real estate	37	(40)
Debit card interchange fees	578	557
Other charges, commissions & fees	1,512	1,486
Total noninterest income	4,179	4,183
Noninterest expense:
Salaries and employee benefits	11,917	10,772
Building occupancy	2,196	1,936
Data processing	1,779	1,682
Professional and other services	952	834
Advertising	809	730
FDIC assessments	473	345
Audits and exams	353	329
Other expenses	2,709	2,482
Total noninterest expenses	21,188	19,110
Income before income taxes	4,345	4,409
Provision for income taxes	922	1,111
Net income attributable to noncontrolling interest and Pathfinder Bancorp, Inc.	3,423	3,298
Net (loss) income attributable to noncontrolling interest	(68)	26
Net income attributable to Pathfinder Bancorp Inc.	3,491	3,272
Preferred stock dividends		16
Net income available to common shareholders	$ 3,491	$ 3,256
Earnings per common share - basic	$ 0.86	$ 0.79
Earnings per common share - diluted	0.83	0.78
Dividends per common share	$ 0.215	$ 0.200

Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Consolidated Statements of Comprehensive Income [Abstract]

Net Income

$ 3,423

$ 3,298

Retirement Plans:

Retirement plan net losses recognized in plan expenses

150

222

Plan (losses) gains not recognized in plan expenses

(631)

330

Net unrealized (loss) gain on retirement plans

(481)

552

Unrealized holding gains on financial derivative:

Change in unrealized holding gains on financial derivative

Reclassification adjustment for interest expense included in net income

Net unrealized gain on financial derivative

Unrealized holding gains (losses) on available for sale securities

Unrealized holding gains (losses) arising during the period

1,454

(2,394)

Reclassification adjustment for net gains included in net income

(489)

(594)

Net unrealized gain (loss) on available for sale securities

965

(2,988)

Accretion of net unrealized loss on securities transferred to held-to-maturity

^[1]

191

316

Other comprehensive income (loss), before tax

675

(2,093)

Tax effect

(271)

836

Other comprehensive income (loss), net of tax

404

(1,257)

Comprehensive income

3,827

2,041

Comprehensive (loss) income, attributable to noncontrolling interest

(68)

Comprehensive income attributable to Pathfinder Bancorp, Inc.

3,895

2,015

Tax Effect Allocated to Each Component of Other Comprehensive Loss

Retirement plan net losses recognized in plan expenses

(61)

(87)

Plan (losses) gains not recognized in plan expenses

252

(134)

Change in unrealized holding gains on financial derivative

(1)

Reclassification adjustment for interest expense included in net income

(10)

Unrealized holding gains (losses) arising during the period

(582)

958

Reclassification adjustment for net gains included in net income

196

236

Accretion of net unrealized loss on securities transferred to held-to-maturity

^[1]

(76)

(126)

Income tax effect related to other comprehensive income

$ (271)

$ 836

[1]

The accretion of the unrealized holding losses in accumulated other comprehensive loss at the date of transfer at September 30, 2013 partially offsets the amortization of the difference between the par value and the fair value of the investment securities at the date of transfer, and is an adjustment of yield.

Consolidated Statements of Changes in Shareholders' Equity - USD ($)

Total

Preferred Stock [Member]

Common Stock [Member]

Additional Paid in Capital [Member]

Retained Earnings [Member]

Accumulated Other Comprehensive Loss [Member]

Unearned ESOP [Member]

Non-controlling Interest [Member]

Balance at Dec. 31, 2015

$ 71,229,000

$ 13,000,000

$ 44,000

$ 28,717,000

$ 33,183,000

$ (2,565,000)

$ (1,574,000)

$ 424,000

Net Income

3,298,000

3,272,000

26,000

Other comprehensive income (loss), net of tax

(1,257,000)

Preferred stock redemption

(13,000,000)

$ (13,000,000)

Preferred stock dividends - SBLF

(16,000)

ESOP shares earned

293,000

113,000

180,000

Stock based compensation

264,000

Stock options exercised

143,000

Purchase of common stock shares

(1,755,000)

(1,000)

(1,754,000)

Common stock dividends declared

(820,000)

Distributions from affiliates

(18,000)

Balance at Dec. 31, 2016

58,361,000

43,000

27,483,000

35,619,000

(3,822,000)

(1,394,000)

432,000

Net Income

3,423,000

3,491,000

(68,000)

Other comprehensive income (loss), net of tax

404,000

ESOP shares earned

367,000

187,000

180,000

Stock based compensation

345,000

Stock options exercised

155,000

Common stock dividends declared

(880,000)

Reclassification of effect of tax rate change

^[1]

(790,000)

790,000

(790,000)

Distributions from affiliates

(31,000)

Balance at Dec. 31, 2017

$ 62,144,000

$ 43,000

$ 28,170,000

$ 39,020,000

$ (4,208,000)

$ (1,214,000)

$ 333,000

[1]	Reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the newly enacted Federal corporate income tax rate reduction from 34% to 21%.

Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Preferred stock redemption (in shares)		(13,000)
Restricted stock awards (in shares)	15,720
ESOP shares earned (in shares)	24,442	18,332
Dividends per common share	$ 0.215	$ 0.200
Purchase of common stock shares (in shares)		143,400
Federal corporate income tax rate	34.00%	34.00%

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
OPERATING ACTIVITIES
Net income attributable to Pathfinder Bancorp, Inc.	$ 3,491	$ 3,272
Adjustments to reconcile net income to net cash flows from operating activities:
Provision for loan losses	1,769	953
Deferred income tax (benefit)	(100)	(249)
Proceeds from sale of loans	53	202
Originations of loans held-for-sale	(53)	(197)
Realized (gains) losses on sales, redemptions and calls of:
Real estate acquired through foreclosure	(31)	50
Loans	(6)	(10)
Available-for-sale investment securities	(29)	(456)
Held-to-maturity investment securities	(32)	(53)
Depreciation	1,035	1,019
Amortization of mortgage servicing rights	28	12
Amortization of deferred loan costs	322	222
Amortization of deferred financing from subordinated debt	34	34
Earnings and gain on bank owned life insurance	(284)	(307)
Net amortization of premiums and discounts on investment securities	1,678	1,211
Amortization of intangible assets	16	16
Stock based compensation and ESOP expense	712	557
Net change in accrued interest receivable	(515)	(479)
Net change in other assets and liabilities	(1,246)	574
Net cash flows from operating activities	6,842	6,371
INVESTING ACTIVITIES
Purchase of investment securities available-for-sale	(132,748)	(145,264)
Purchase of investment securities held-to-maturity	(21,449)	(16,859)
Net (purchases of) proceeds of Federal Home Loan Bank stock	(605)	(826)
Proceeds from maturities and principal reductions of investment securities available-for-sale	38,262	68,506
Proceeds from maturities and principal reductions of investment securities held-to-maturity	7,080	3,659
Proceeds from sales, redemptions and calls of:
Available-for-sale investment securities	65,010	30,228
Held-to-maturity investment securities	2,635	3,000
Real estate acquired through foreclosure	993	279
Realized gains on hedging activity	(428)	(85)
Net change in loans	(90,718)	(62,733)
Purchase of premises and equipment	(1,975)	(1,362)
Net cash flows from investing activities	(133,943)	(121,457)
FINANCING ACTIVITIES
Net change in demand deposits, NOW accounts, savings accounts, money management deposit accounts, MMDA accounts and escrow deposits	92,470	57,830
Net change in time deposits	18,329	28,594
Net change in brokered deposits	1,821	34,244
Net change in short-term borrowings	(11,347)	17,147
Payments on long-term borrowings	(7,000)	(3,000)
Proceeds from long-term borrowings	33,228	3,500
Repayment of loan on cash surrender value of bank owned life insurance	0	(536)
Redemption of preferred stock - SBLF	0	(13,000)
Purchase of common stock	0	(1,755)
Proceeds from exercise of stock options	155	143
Cash dividends paid to preferred shareholder - SBLF	0	(49)
Cash dividends paid to common shareholders	(884)	(866)
Change in noncontrolling interest, net	(99)	8
Net cash flows from financing activities	126,673	122,260
Change in cash and cash equivalents	(428)	7,174
Cash and cash equivalents at beginning of period	22,419	15,245
Cash and cash equivalents at end of period	21,991	22,419
CASH PAID DURING THE PERIOD FOR:
Interest	6,179	3,928
Income taxes	945	970
NON-CASH INVESTING ACTIVITY
Real estate acquired in exchange for loans	$ 822	$ 390

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1: Summary of Significant Accounting Policies

Nature of Operations

The accompanying consolidated financial statements include the accounts of Pathfinder Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Pathfinder Bank (the “Bank”). The Company is a Maryland corporation headquartered in Oswego, New York. On October 16, 2014, the Company completed its conversion from the mutual holding company structure and the related public offering and is now a stock holding company that is fully owned by the public. As a result of the conversion, the mutual holding company and former mid-tier holding company were merged into Pathfinder Bancorp, Inc. The primary business of the Company is its investment in Pathfinder Bank (the "Bank") which is 100% owned by the Company. The Company sold 2,636,053 shares of common stock in the offering, including 105,442 shares sold to the Pathfinder Bank employee stock ownership plan (“ESOP”). All shares were sold at a price of $10.00 per share raising $26.4 million in gross proceeds. Additionally, $197,000 in cash was received from the merger of MHC into the company; and after accounting for conversion related expenses of $1.5 million, the Company received $24.9 million in net proceeds. Concurrent with the completion of the offering, publicly owned shares of Pathfinder Bancorp, Inc., a federal corporation, were exchanged for 1.6472 shares of the Company’s common stock. At December 31, 2017, 4,280,227 shares of common stock were outstanding. The Bank has two wholly owned operating subsidiaries, Pathfinder Risk Management Company, Inc. (“PRMC”) and Whispering Oaks Development Corp. All significant inter-company accounts and activity have been eliminated in consolidation. Although the Company owns, through its subsidiary PRMC, 51% of the membership interest in FitzGibbons Agency, LLC (“FitzGibbons”), the Company is required to consolidate 100% of FitzGibbons within the consolidated financial statements. The 49% of which the Company does not own is accounted for separately as noncontrolling interests within the consolidated financial statements.

The Company has seven branch offices located in Oswego County and two branch offices in Onondaga County and one loan production office in Oneida County. The Company is primarily engaged in the business of attracting deposits from the general public in the Company’s market area, and investing such deposits, together with other sources of funds, in loans secured by commercial real estate, business assets, one-to-four family residential real estate and investment securities.

Use of Estimates in the Preparation of Consolidated Financial Statements

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has identified the allowance for loan losses, deferred income taxes, pension obligations, the annual evaluation of the Company’s goodwill for possible impairment and the evaluation of investment securities for other than temporary impairment and the estimation of fair values for accounting and disclosure purposes to be the accounting areas that require the most subjective and complex judgments, and as such, could be the most subject to revision as new information becomes available.

The Company is subject to the regulations of various governmental agencies. The Company also undergoes periodic examinations by the regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required loss allowances, and operating restrictions resulting from the regulators' judgments based on information available to them at the time of their examinations.

Significant Group Concentrations of Credit Risk

Most of the Company’s activities are with customers located primarily in Oswego and Onondaga counties of New York State. A large portion of the Company’s portfolio is centered in residential and commercial real estate. The Company closely monitors real estate collateral values and requires additional reviews of commercial real estate appraisals by a qualified third party for commercial real estate loans in excess of $400,000. All residential loan appraisals are reviewed by an individual or third party who is independent of the loan origination or approval process and was not involved in the approval of appraisers or selection of the appraiser for the transaction, and has no direct or indirect interest, financial or otherwise in the property or the transaction. Note 4 discusses the types of securities that the Company invests in. Note 5 discusses the types of lending that the Company engages in. The Company does not have any significant concentrations to any one industry or customer.

Advertising

The Company follows the policy of charging the costs of advertising to expense as incurred.

Noncontrolling Interest

Noncontrolling interest represents the portion of ownership and profit or loss that is attributable to the minority owners of the FitzGibbons Agency.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits (with original maturity of three months or less).

Investment Securities

The Company classifies investment securities as either available-for-sale or held-to-maturity. The Company does not hold any securities considered to be trading. Available-for-sale securities are reported at fair value, with net unrealized gains and losses reflected as a separate component of shareholders’ equity, net of the applicable income tax effect. Held-to-maturity securities are those that the Company has the ability and intent to hold until maturity and are reported at amortized cost.

Gains or losses on investment security transactions are based on the amortized cost of the specific securities sold. Premiums and discounts on securities are amortized and accreted into income using the interest method over the period to maturity.

Note 4 to the consolidated financial statements includes additional information about the Company’s accounting policies with respect to the impairment of investment securities.

Federal Home Loan Bank Stock

Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. The stock is carried at cost.

Transfers of Financial Assets

Transfers of financial assets, including sales of loans and loan participations, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Loans

The Company grants mortgage, commercial, municipal, and consumer loans to customers. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at their outstanding unpaid principal balances, less the allowance for loan losses plus net deferred loan origination costs. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the market area. Interest income is generally recognized when income is earned using the interest method. Nonrefundable loan fees received and related direct origination costs incurred are deferred and amortized over the life of the loan using the interest method, resulting in a constant effective yield over the loan term. Deferred fees are recognized into income and deferred costs are charged to income immediately upon prepayment of the related loan.

The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. The residential mortgage segment consists of one-to-four family first-lien residential mortgages and construction loans. Commercial loans consist of the following classes: real estate, lines of credit, other commercial and industrial, and tax-exempt loans. Consumer loans include both home equity lines of credit and loans with junior liens and other consumer loans.

Allowance for Loan Losses

The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the date of the statement of condition and it is recorded as a reduction of loans. The allowance is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, unless productive collection efforts are providing results. Consumer loans may be charged off earlier in the event of bankruptcy, or if there is an amount that is deemed uncollectible. No portion of the allowance for loan losses is restricted to any individual loan product and the entire allowance is available to absorb any and all loan losses.

The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on three major components which are; specific components for larger loans, recent historical losses and several qualitative factors applied to a general pool of loans, and an unallocated component.

The first component is the specific component that relates to loans that are classified as impaired. For these loans, an allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan.

The second or general component covers pools of loans, by loan class, not considered impaired, smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure first based on historical loss rates for each of these categories of loans. The ratio of net charge-offs to loans outstanding within each product class, over the most recent eight quarters, lagged by one quarter, is used to generate the historical loss rates. In addition, qualitative factors are added to the historical loss rates in arriving at the total allowance for loan loss need for this general pool of loans. The qualitative factors include changes in national and local economic trends, the rate of growth in the portfolio, trends of delinquencies and nonaccrual balances, changes in loan policy, and changes in lending management experience and related staffing. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. These qualitative factors, applied to each product class, make the evaluation inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss analysis and calculation.

The third or unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio and generally comprises less than 10% of the total allowance for loan loss.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length and reason for the delay, the borrower’s prior payment record and the amount of shortfall in relation to what is owed. Impairment is measured by either the present value of the expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral if the loan is collateral dependent. The majority of the Company’s loans utilize the fair value of the underlying collateral.

An allowance for loan loss is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals, less costs to sell. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property.

For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets.

Large groups of homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual residential mortgage loans less than $300,000, home equity and other consumer loans for impairment disclosures, unless such loans are related to borrowers with impaired commercial loans or they are subject to a troubled debt restructuring agreement. Loans that are related to borrowers with impaired commercial loans or are subject to a troubled debt restructuring agreement are evaluated individually for impairment. .

Commercial loans whose terms are modified are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally include but are not limited to a temporary reduction in the interest rate or an extension of a loan’s stated maturity date. Commercial loans classified as troubled debt restructurings are designated as impaired and evaluated individually as discussed above.

The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of the collateral, if appropriate, are evaluated not less than annually for commercial loans or when credit deficiencies arise on all loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. See Note 5 for a description of these regulatory classifications.

In addition, Federal and State regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate.

Income Recognition on Impaired and Nonaccrual Loans

For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan may be currently performing. A loan may remain on accrual status if it is either well secured or guaranteed and in the process of collection. When a loan is placed on nonaccrual status, unpaid interest is reversed and charged to interest income. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Nonaccrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification.

For nonaccrual loans, when future collectability of the recorded loan balance is expected, interest income may be recognized on a cash basis. In the case where a nonaccrual loan had been partially charged off, recognition of interest on a cash basis is limited to that which would have been recognized on the recorded loan balance at the contractual interest rate. Cash interest receipts in excess of that amount are recorded as recoveries to the allowance for loan losses until prior charge-offs have been fully recovered.

Off-Balance Sheet Credit Related Financial Instruments

In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under standby letters of credit. Such financial instruments are recorded when they are funded.

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets, ranging up to 40 years for premises and 10 years for equipment. Maintenance and repairs are charged to operating expenses as incurred. The asset cost and accumulated depreciation are removed from the accounts for assets sold or retired and any resulting gain or loss is included in the determination of income.

Foreclosed Real Estate

Physical possession of residential real estate property collateralizing a residential mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed-in-lieu of foreclosure or through a similar legal agreement. Properties acquired through foreclosure, or by deed-in-lieu of foreclosure, are recorded at their fair value less estimated costs to sell. Fair value is typically determined based on evaluations by third parties. Costs incurred in connection with preparing the foreclosed real estate for disposition are capitalized to the extent that they enhance the overall fair value of the property. Any write-downs on the asset’s fair value less costs to sell at the date of acquisition are charged to the allowance for loan losses. Subsequent write downs and expenses of foreclosed real estate are included as a valuation allowance and recorded in noninterest expense.

Goodwill and Intangible Assets

Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized, but is evaluated annually for impairment. Intangible assets, such as customer relationships, are amortized over their useful lives, generally 15 years.

Mortgage Servicing Rights

Originated mortgage servicing rights are recorded at their fair value at the time of transfer of the related loans and are amortized in proportion to, and over the period of, estimated net servicing income or loss. The carrying value of the originated mortgage servicing rights is periodically evaluated for impairment or between annual evaluations under certain circumstances.

Stock-Based Compensation

Compensation costs related to share-based payment transactions are recognized based on the grant-date fair value of the stock-based compensation issued. Compensation costs are recognized over the period that an employee provides service in exchange for the award. Compensation costs related to the Employee Stock Ownership Plan are dependent upon the average stock price and the shares committed to be released to plan participants through the period in which income is reported.

Retirement Benefits

The Company has a non-contributory defined benefit pension plan that covered substantially all employees. On May 14, 2012, the Company informed its employees of its decision to freeze participation and benefit accruals under the plan, primarily to reduce some of the volatility in earnings that can accompany the maintenance of a defined benefit plan. The plan was frozen on June 30, 2012. Compensation earned by employees up to June 30, 2012 is used for purposes of calculating benefits under the plan but there will be no future benefit accruals after this date. Participants as of June 30, 2012 will continue to earn vesting credit with respect to their frozen accrued benefits as they continue to work. Pension expense under these plans is charged to current operations and consists of several components of net pension cost based on various actuarial assumptions regarding future experience under the plans.

Gains and losses, prior service costs and credits, and any remaining transition amounts that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effects, until they are amortized as a component of net periodic cost. Plan assets and obligations are measured as of the Company’s statement of condition date.

The Company has unfunded deferred compensation and supplemental executive retirement plans for selected current and former employees and officers that provide benefits that cannot be paid from a qualified retirement plan due to Internal Revenue Code restrictions. These plans are nonqualified under the Internal Revenue Code, and assets used to fund benefit payments are not segregated from other assets of the Company, therefore, in general, a participant's or beneficiary's claim to benefits under these plans is as a general creditor.

The Bank sponsors an Employee Stock Ownership Plan (“ESOP”) covering substantially all full time employees. The cost of shares issued to the ESOP but not committed to be released to the participants is presented in the consolidated statement of condition as a reduction of shareholders’ equity. ESOP shares are released to the participants on an annual basis in accordance with a predetermined schedule. The Company records ESOP compensation expense based on the shares committed to be released and allocated to the participant’s accounts multiplied by the average share price of the Company’s stock over the period. Dividends related to unallocated shares are recorded as compensation expense.

Derivative Financial Instruments

Derivatives are recorded on the statement of condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify in whole or in part for the provisions of hedge accounting. The Company had one interest rate swap, which has been determined to be a cash flow hedge that expired in 2016 and was not renewed. The fair value of cash-flow hedging instruments (“Cash Flow Hedge”) are recorded in either other assets or other liabilities. On an ongoing basis, the statement of condition is adjusted to reflect the then current fair value of the Cash Flow Hedge. The related gains or losses are reported in other comprehensive income (loss) and are subsequently reclassified into earnings, as a yield adjustment in the same period in which the related interest on the hedged item (primarily a variable-rate debt obligation) affects earnings. To the extent that the Cash Flow Hedge is not effective, the ineffective portion of the Cash Flow Hedge is immediately recognized as interest expense.

As a hedge against rising short-term interest rates, the Company sold a series of U.S. Treasury securities in the amount of $40 million during 2017. The Company was in controlling possession of, but did not own, the securities which had been received as collateral, under industry-standard repurchase agreements, for a corresponding series of 30-day loans of approximately $40 million on each occurrence to an unrelated third party at market rates of interest. The sale of these securities provided the funds necessary to advance the loan to the third party and placed the Company in what is generally described as a “short position” with respect to the sold U.S. Treasury securities. This transaction acted as a hedge against rising short-term interest rates because the price of the sold securities would be expected to decline in a rising short-term interest rate environment and could be subsequently re-acquired at the conclusion of the 30-day loan period at a price lower than the price at which it was originally sold. Short-term rates generally rose during the successive 30-day loan periods and, consequently, the Company recognized gains on the sale of those securities in the amount of $428,000 when the Treasury securities were repurchased.

In 2016 the Company sold a U.S. Treasury security in the amount of $25 million which had been received as collateral, under an industry-standard repurchase agreement, for a 30-day loan of approximately $25 million to an unrelated third party, at no interest. The sale of this security provided the funds necessary to advance the loan to the third party and placed the Company in what is generally described as a “short position” with respect to the sold U.S. Treasury securities. Short-term rates rose during the 30-day loan periods and, consequently, the Company recognized a gain on the sale of the security in the amount of $85,000.

The hedge positions were closed on December 31, 2017 and 2016.

Income Taxes

Provisions for income taxes are based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are reported in the consolidated financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

On December 22, 2017 the Tax Act was signed into law. The Tax Act instituted significant changes to various sections of the Internal Revenue Code that effects the Company. Most notably, the Tax Act reduces the Company’s marginal federal income tax rate from 34% to 21% starting January 1, 2018. Generally Accepted Accounting Principles (“GAAP”) requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment. Accordingly, the Company recorded an income tax benefit in the fourth quarter of 2017 related to the Tax Act in the amount of $155,000. The reduction in income tax expense was largely attributable to the reduction in the value of net deferred tax assets and liabilities reflecting lower future tax obligations resulting from the Tax Act’s enacted lower federal corporate tax rate.

Earnings Per Share

Basic earnings per common share are computed by dividing net income, after preferred stock dividends and preferred stock discount accretion, by the weighted average number of common shares outstanding throughout each year. Diluted earnings per share gives effect to weighted average shares that would be outstanding assuming the exercise of issued stock options using the treasury stock method. Unallocated shares of the Company’s ESOP plan are not included when computing earnings per share until they are committed to be released.

Segment Reporting

The Company has evaluated the activities relating to its strategic business units. The controlling interest in the FitzGibbons Agency is dissimilar in nature and management when compared to the Company’s other strategic business units which are judged to be similar in nature and management. The Company has determined that the FitzGibbons Agency is below the reporting threshold in size in accordance with Accounting Standards Codification 280. Accordingly, the Company has determined it has no reportable segments.

Comprehensive Income (Loss)

Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the statement of condition, such items, along with net income, are components of comprehensive income.

Accumulated other comprehensive loss represents the sum of these items, with the exception of net income, as of the balance sheet date and is represented in the table below.

	As of December 31,
Accumulated Other Comprehensive Loss By Component:	2017			2016
Unrealized loss for pension and other postretirement obligations	$	(3,003	)	$	(2,520	)
Tax effect		783			1,007
Net unrealized loss for pension and other postretirement obligations		(2,220	)		(1,513	)
Unrealized loss on available-for-sale securities		(2,108	)		(3,072	)
Tax effect		550			1,227
Net unrealized loss on available-for-sale securities		(1,558	)		(1,845	)
Unrealized loss on securities transferred to held-to-maturity		(585	)		(774	)
Tax effect		155			310
Net unrealized loss on securities transferred to held-to-maturity		(430	)		(464	)
Accumulated other comprehensive loss	$	(4,208	)	$	(3,822	)

(1) Reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the newly enacted Federal corporate income tax rate reduction from 34% to 21%.

Reclassifications

Certain amounts in the 2016 consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income as previously reported.

New Accounting Pronouncements

12 Months Ended

Dec. 31, 2017

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS

NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS

The following Table provides a description of accounting standards that were adopted in 2017 as well as standards that are currently effective but could have an impact on the Company's consolidated financial statements upon adoption.

Standard	Description	Required Date of Implementation	Effect on Consolidated Financial Statements
Standards Adopted in 2017
Improvements to Employee Share-Based Payment Accounting (ASU 2016-09: Compensation—Stock Compensation [Topic 718]: Improvements to Employee Share-Based Payment Accounting)	The amended guidance requires that all excess tax benefits and tax deficiencies related to share-based compensation be recognized in income tax expense in the income statement and that such amounts be recognized in the period in which the tax deduction arises or in the period in which an expiration of an award occurs.	January 1, 2017	The adoption of this guidance resulted in a $37,000 reduction of income tax expense for the year ended December 31, 2017 that under previous accounting guidance would have been recognized directly in shareholders’ equity.

Simplifying the Transition to Equity Method of Accounting (ASU 2016-07: Investments—Equity Method and Joint Ventures [Topic 323]: Simplifying the Transition to the Equity Method of Accounting)	The amended guidance eliminates the requirement that an investor retroactively apply the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amended guidance instead requires the investor to adopt the equity method of accounting as of the date the investment first qualifies for such accounting.	January 1, 2017	The adoption of this guidance did not have a material effect on the Company’s consolidated financial position or results of operations.

Derivatives and Hedging Amendments (ASU 2016-05: Derivatives and Hedging [Topic 815]: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships)	One amendment clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. A second amendment clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts.	January 1, 2017	The adoption of this guidance did not have a material effect on the Company’s consolidated financial position or results of operations.

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02: Income Statement—Reporting Comprehensive Income [Topic 220]: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income)	The amended guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of reclassification would be the difference between the historical corporate income tax and the new enacted 21 percent corporate income tax rate.	January 1, 2018 (Early adoption permitted)	The Company early adopted the amended guidance following enactment of the Tax Act in 2017. The adoption of this guidance resulted in a $790,000 reclassification from AOCI to retained earnings.

Standard	Description	Required Date of Implementation	Effect on Consolidated Financial Statements
Standards Not Yet Adopted as of December 31, 2017
Revenue from Contracts with Customers (ASU 2014-09: Revenue from Contracts with Customers [Topic 606])	The core principle of the accounting guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.	January 1, 2018	The Company adopted the revenue recognition guidance effective January 1, 2018, and expects to apply the modified retrospective approach for reporting purposes. A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. With respect to noninterest income, under the new guidance credit card interchange revenue will be presented net of rewards expense in other revenues from operations. For the years ended December 31, 2017 and 2016, The Company recognized $94,000 and $111,000, respectively, of credit card rewards expense in other costs of operations. The adjustment to beginning retained earnings as well as the impact of any changes in the timing of revenue recognition of noninterest income items within the scope of this guidance will not be material to the Company’s financial position or results of operations.

Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01: Financial Instruments—Overall [Subtopic 825-10]: Recognition and Measurement of Financial Assets and Financial Liabilities)	The amended guidance requires equity investments (excluding those accounted for under the equity method of accounting or those that result in consolidation of the investee) be measured at fair value with changes in fair value recognized in net income, public entities to use the exit price when measuring the fair value of financial instruments for disclosure purposes, and an entity to present separately in other comprehensive income a change in the instrument-specific credit risk when the entity has elected to measure a liability at fair value in accordance with the fair value option.	January 1, 2018	The Company held marketable equity securities with a fair value of $515,000 in its available-for-sale portfolio at December 31, 2017. Effective January 1, 2018, fair value changes in such equity securities will be recognized in the consolidated statement of income as opposed to AOCI where they had been recognized under previous accounting guidance. Although those securities have historically fluctuated in value, how those securities could change in value in the future is not predictable.

Improvements to Accounting for Hedging Activities (ASU 2017-12: Derivatives and Hedging [Topic 815]: Targeted Improvements to Accounting for Hedging Activities)	The amended guidance expands and clarifies hedge accounting for nonfinancial and financial risk components, aligns the recognition and presentation of the effects of the hedging instrument and hedged item in the financial statements, and simplifies the requirements for assessing effectiveness in a hedging relationship.	January 1, 2019 (Early adoption permitted)	The Company adopted the amended guidance on January 1, 2018 and does not expect such adoption will have a material impact on its consolidated financial statements.

Standard	Description	Required Date of Implementation	Effect on Consolidated Financial Statements
Standards Not Yet Adopted as of December 31, 2017
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07: Compensation — Retirement Benefits [Topic 715] Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost)	The amended guidance requires the service cost component of the net periodic pension cost and net periodic postretirement benefit cost to be reported in the same line item in the income statement as other compensation costs arising from services rendered by the pertinent employees during the period. The amendments also require that the other components of net benefit costs be presented separately from the service cost component.	January 1, 2018	The Company adopted the new reporting requirements effective January 1, 2018. The Company has previously reported all of its net periodic pension and postretirement benefit costs in salaries and employee benefits within the consolidated statement of income. Information about net periodic pension and postretirement benefit costs that were not service cost-related is included in Note 14.

Scope of Modification Accounting for Share-Based Payment Awards (ASU 2016-09: Compensation — Stock Compensation [Topic 718]: Improvements to Employee Share-Based Payment Accounting)	The amended guidance addresses which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting.	January 1, 2018	The Company adopted the amended guidance on January 1, 2018. The guidance is to be applied on a prospective basis for awards modified on or after the adoption date.

Restricted Cash (ASU 2016-18: Statements of Cash Flows [Topic 230]: Restricted Cash)	The amended guidance requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. In addition, when cash, cash equivalents, and restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, the line items and amounts must be presented on the face of the statement of cash flows or disclosed in the notes to the financial statements. Information about the nature of restrictions on an entity’s cash and cash equivalents must also be disclosed.	January 1, 2018	The guidance will be applied using a retrospective transition method beginning with first quarter 2018 reporting.

Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15: Statement of Cash Flows [Topic 230]: Classification of Certain Cash Receipts and Cash Payments)	This amendment provides clarifying guidance for classifying cash inflows or outflows on the statement of cash flows where current guidance is unclear or silent.	January 1, 2018	The guidance will be applied using a retrospective transition method beginning with first quarter 2018 reporting.

Clarifying the Definition of a Business (ASU 2017-01: Business Combinations [Topic 805]: Clarifying the Definition of a Business)	The amended guidance clarifies the definition of a business for purposes of evaluating whether transactions would be accounted for as acquisitions (or disposals) of assets or businesses.	January 1, 2018	The guidance should be applied using a prospective transition method. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

Standard	Description	Required Date of Implementation	Effect on Consolidated Financial Statements
Standards Not Yet Adopted as of December 31, 2017
Leases (ASU 2016-02: Leases [Topic 842])	The new guidance requires lessees to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months. While the guidance requires all leases to be recognized in the balance sheet, there continues to be a differentiation between finance leases and operating leases for purposes of income statement recognition and cash flow statement presentation. For finance leases, interest on the lease liability and amortization of the right-of-use asset will be recognized separately in the statement of income. Repayments of principal on those lease liabilities will be classified within financing activities and payments of interest on the lease liability will be classified within operating activities in the statement of cash flows. For operating leases, a single lease cost is recognized in the statement of income and allocated over the lease term, generally on a straight-line basis. All cash payments are presented within operating activities in the statement of cash flows. The accounting applied by lessors is largely unchanged from existing GAAP, however, the guidance eliminates the accounting model for leveraged leases for leases that commence after the effective date of the guidance.	January 1, 2019 (Early adoption permitted)	The Company occupies certain banking offices and uses certain equipment under noncancelable operating lease agreements which currently are not reflected in its consolidated balance sheet. Upon adoption of the guidance, the Company expects to report increased assets and increased liabilities as a result of recognizing right-of-use assets and lease liabilities on its consolidated balance sheet. The Company was committed to $1.1 million of minimum lease payments under noncancelable operating lease agreements at December 31, 2017. The Company does not expect the new guidance will have a material impact to its consolidated statement of income.

Premium Amortization on Purchased Callable Debt Securities (ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs [Subtopic 310-20]: Premium Amortization on Purchased Callable Debt Securities)	The amended guidance requires the premium on callable debt securities 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.	January 1, 2019 (Early adoption permitted)	The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

Standard	Description	Required Date of Implementation	Effect on Consolidated Financial Statements
Standards Not Yet Adopted as of December 31, 2017
Measurement of Credit Losses on Financial Instruments (ASU 2016-13: Financial Instruments—Credit Losses [Topic 326]: Measurement of Credit Losses on Financial Instruments)	The amended guidance replaces the current incurred loss model for determining the allowance for credit losses. The guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses will represent a valuation account that is deducted from the amortized cost basis of the financial assets to present their net carrying value at the amount expected to be collected. The income statement will reflect the measurement of credit losses for newly recognized financial assets as well as expected increases or decreases of expected credit losses that have taken place during the period. When determining the allowance, expected credit losses over the contractual term of the financial asset(s) (taking into account prepayments) will be estimated considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amended guidance also requires recording an allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. The initial allowance for these assets will be added to the purchase price at acquisition rather than being reported as an expense. Subsequent changes in the allowance will be recorded through the income statement as an expense adjustment. In addition, the amended guidance requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The calculation of credit losses for available-for-sale securities will be similar to how it is determined under existing guidance.	January 1, 2020 (Early adoption permitted as of January 1, 2019)	The Company is assessing the new guidance to determine what modifications to existing credit estimation processes may be required. The Company expects that the new guidance will result in an increase in its allowance for credit losses as a result of considering credit losses over the expected life of its loan and debt securities portfolios. Increases in the level of allowances will also reflect new requirements to include estimated credit losses on investment securities classified as held-to-maturity, if any. The Company has formed an Implementation Committee, whose membership includes representatives of senior management, to develop plans that will encompass: (1) internal methodology changes (2) data collection and management activities, (3) internal communication requirements, and (4) estimation of the projected impact of this guidance. The amount of any change in the allowance for credit losses resulting from the new guidance will ultimately be impacted by the provisions of this guidance as well as by the loan and debt security portfolios composition and asset quality at the adoption date, and economic conditions and forecasts at the time of adoption.

Simplifying the Test for Goodwill Impairment (ASU 2017-04: Intangibles—Goodwill and Other [Topic 350]: Simplifying the Test for Goodwill Impairment)	The amended guidance eliminates Step 2 from the goodwill impairment test.	January 1, 2020 (Early adoption permitted)	The amendments should be applied using a prospective transition method. The Company does not expect the guidance will have a material impact on its consolidated financial statements, unless at some point in the future one of its reporting units were to fail Step 1 of the goodwill impairment test.

Standard	Description	Required Date of Implementation	Effect on Consolidated Financial Statements
Standards Not Yet Adopted as of December 31, 2017
Share-based Payment Awards (ASU 2017-11: Earnings per Share [Topic 260])	The amended guidance clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in FASB Topic 18. An entity should account for the effects of a modification unless specific criteria regarding fair value, vesting condition, and classification are met. The current disclosure requirements in FASB Topic 18 apply regardless of whether an entity is required to apply modification accounting under the amendments in this guidance.	January 1, 2018	The guidance will be applied using a prospective transition method. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

Earnings per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 3: EARNINGS PER SHARE

Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Net income available to common shareholders is net income to Pathfinder Bancorp, Inc. less the total of preferred dividends declared. Diluted earnings per share include the potential dilutive effect that could occur upon the assumed exercise of issued stock options using the Treasury Stock method. Anti-dilutive shares are common stock equivalents with average exercise prices in excess of the weighted average market price for the period presented. Anti-dilutive stock options, not included in the computation below, were 23,065 and 214,415 for the years ended 2017 and 2016, respectively. Unallocated common shares held by the ESOP are not included in the weighted-average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released to plan participants.

The following table sets forth the calculation of basic and diluted earnings per share.

	Years ended
	December 31,
(In thousands, except per share data)	2017		2016
Basic Earnings Per Common Share
Net income available to common shareholders	$	3,491	$	3,256
Weighted average common shares outstanding		4,081		4,105
Basic earnings per common share	$	0.86	$	0.79
Diluted Earnings Per Common Share
Net income available to common shareholders	$	3,491	$	3,256
Weighted average common shares outstanding		4,081		4,105
Effect of assumed exercise of stock options		108		85
Diluted weighted average common shares outstanding		4,189		4,190
Diluted earnings per common share	$	0.83	$	0.78

Investment Securities

12 Months Ended

Dec. 31, 2017

Investments Debt And Equity Securities [Abstract]

INVESTMENT SECURITIES

NOTE 4: INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities are summarized as follows:

	December 31, 2017
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	41,489	$	1	$	(154	)	$	41,336
State and political subdivisions		13,960		12		(291	)		13,681
Corporate		8,584		108		(92	)		8,600
Asset backed securities		6,662		12		(30	)		6,644
Residential mortgage-backed - US agency		36,214		23		(495	)		35,742
Collateralized mortgage obligations - US agency		54,481		-		(1,133	)		53,348
Collateralized mortgage obligations - Private label		11,193		62		(203	)		11,052
Total		172,583		218		(2,398	)		170,403
Equity investment securities:
Common stock - financial services industry		663		72		-			735
Total		663		72		-			735
Total available-for-sale	$	173,246	$	290	$	(2,398	)	$	171,138

Held-to-Maturity Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	4,948	$	14	$	(14	)	$	4,948
State and political subdivisions		35,130		641		(311	)		35,460
Corporate		8,311		151		(159	)		8,303
Residential mortgage-backed - US agency		6,853		53		(10	)		6,896
Collateralized mortgage obligations - US agency		7,574		83		(215	)		7,442
Collateralized mortgage obligations - Private label		3,380		7		(10	)		3,377
Total held-to-maturity	$	66,196	$	949	$	(719	)	$	66,426

	December 31, 2016
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	24,263	$	1	$	(80	)	$	24,184
State and political subdivisions		17,185		33		(737	)		16,481
Corporate		15,560		20		(385	)		15,195
Asset backed securities		6,696		5		(37	)		6,664
Residential mortgage-backed - US agency		31,204		-		(638	)		30,566
Collateralized mortgage obligations - US agency		42,124		45		(1,183	)		40,986
Collateralized mortgage obligations - Private label		6,682		-		(105	)		6,577
Total		143,714		104		(3,165	)		140,653
Equity investment securities:
Mutual funds:
Ultra short mortgage fund		643		-		(17	)		626
Common stock - financial services industry		663		13		-			676
Total		1,306		13		(17	)		1,302
Total available-for-sale	$	145,020	$	117	$	(3,182	)	$	141,955
Held-to-Maturity Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	4,928	$	30	$	(18	)	$	4,940
State and political subdivisions		30,697		572		(693	)		30,576
Corporate		8,240		85		(228	)		8,097
Residential mortgage-backed - US agency		6,386		31		(20	)		6,397
Collateralized mortgage obligations - US agency		2,927		96		-			3,023
Collateralized mortgage obligations - Private label		1,467		-		(71	)		1,396
Total held-to-maturity	$	54,645	$	814	$	(1,030	)	$	54,429

The majority of the Company’s investments in mortgage-backed securities include pass-through securities and collateralized mortgage obligations issued and guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. At December 31, 2017, the Company also held a total of seventeen private-label mortgage-backed securities or collateralized mortgage obligations with an aggregate book balance of $25.2 million and six private-label asset backed securities collateralized by consumer loans with an aggregate book balance of $6.0 million. At December 31, 2016, the Company held a total of seven private-label mortgage-backed securities or collateralized mortgage obligations with an aggregate book balance of $9.8 million and five private-label asset backed securities collateralized by consumer loans with an aggregate book balance of $6.7 million. These investments are relatively short-duration securities with significant credit enhancements. The Company’s investments in state and political obligation securities are generally municipal obligations that are categorized as general obligations of the issuer that are supported by the overall taxing authority of the issuer, and in some cases are insured. The obligations issued by school districts are generally supported by state administered insurance funds or credit enhancement programs.

The amortized cost and estimated fair value of debt investments at December 31, 2017 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.

	Available-for-Sale				Held-to-Maturity
	Amortized		Estimated		Amortized		Estimated
(In thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	21,555	$	21,506	$	1,680	$	1,680
Due after one year through five years		28,957		28,830		11,381		11,488
Due after five years through ten years		11,587		11,642		16,993		17,479
Due after ten years		8,596		8,283		18,335		18,064
Sub-total		70,695		70,261		48,389		48,711
Residential mortgage-backed - US agency		36,214		35,742		6,853		6,896
Collateralized mortgage obligations - US agency		54,481		53,348		7,574		7,442
Collateralized mortgage obligations - Private label		11,193		11,052		3,380		3,377
Totals	$	172,583	$	170,403	$	66,196	$	66,426

The Company’s investment securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, is as follows:

	December 31, 2017
	Less than Twelve Months							Twelve Months or More							Total
	Number of							Number of							Number of
	Individual		Unrealized			Fair		Individual		Unrealized			Fair		Individual		Unrealized			Fair
(Dollars in thousands)	Securities		Losses			Value		Securities		Losses			Value		Securities		Losses			Value
Available-for-Sale Portfolio
US Treasury, agencies and GSE's		5	$	(105	)	$	27,359		4	$	(49	)	$	13,957		9	$	(154	)	$	41,316
State and political subdivisions		18		(24	)		2,480		12		(267	)		5,041		30		(291	)		7,521
Corporate		2		(19	)		1,791		1		(73	)		1,727		3		(92	)		3,518
Asset backed securities		2		(17	)		3,123		1		(13	)		742		3		(30	)		3,865
Residential mortgage-backed - US agency		15		(159	)		21,551		9		(336	)		10,463		24		(495	)		32,014
Collateralized mortgage obligations - US agency		14		(195	)		23,790		21		(938	)		25,395		35		(1,133	)		49,185
Collateralized mortgage obligations - Private label		4		(203	)		7,439		-		-			-		4		(203	)		7,439
Totals		60	$	(722	)	$	87,533		48	$	(1,676	)	$	57,325		108	$	(2,398	)	$	144,858
Held-to-Maturity Portfolio
US Treasury, agencies and GSE's		2	$	(2	)	$	1,990		1	$	(12	)	$	988		3	$	(14	)	$	2,978
State and political subdivisions		8		(55	)		5,668		11		(256	)		8,644		19		(311	)		14,312
Corporate		3		(10	)		1,412		1		(149	)		2,087		4		(159	)		3,499
Residential mortgage-backed - US agency		2		(10	)		1,909		-		-			-		2		(10	)		1,909
Collateralized mortgage obligations - US agency		2		(215	)		4,418		-		-			-		2		(215	)		4,418
Collateralized mortgage obligations - Private label		1		(10	)		1,119		-		-			-		1		(10	)		1,119
Totals		18	$	(302	)	$	16,516		13	$	(417	)	$	11,719		31	$	(719	)	$	28,235

	December 31, 2016
	Less than Twelve Months							Twelve Months or More							Total
	Number of							Number of							Number of
	Individual		Unrealized			Fair		Individual		Unrealized			Fair		Individual		Unrealized			Fair
(Dollars in thousands)	Securities		Losses			Value		Securities		Losses			Value		Securities		Losses			Value
Available-for-Sale Portfolio
US Treasury, agencies and GSE's		6	$	(80	)	$	22,161		-	$	-		$	-		6	$	(80	)	$	22,161
State and political subdivisions		53		(737	)		14,057		-		-			-		53		(737	)		14,057
Corporate		10		(385	)		10,587		-		-			-		10		(385	)		10,587
Asset backed securities		3		(37	)		4,455		-		-			-		3		(37	)		4,455
Equity and other investments		1		(17	)		626		-		-			-		1		(17	)		626
Residential mortgage-backed - US agency		23		(638	)		29,849		-		-			-		23		(638	)		29,849
Collateralized mortgage obligations - US agency		28		(1,087	)		33,376		4		(96	)		2,514		32		(1,183	)		35,890
Collateralized mortgage obligations - Private label		5		(105	)		6,577		-		-			-		5		(105	)		6,577
Totals		129	$	(3,086	)	$	121,688		4	$	(96	)	$	2,514		133	$	(3,182	)	$	124,202
Held-to-Maturity Portfolio
US Treasury, agencies and GSE's		1	$	(18	)	$	982		-	$	-		$	-		1	$	(18	)	$	982
State and political subdivisions		16		(693	)		10,038		-		-			-		16		(693	)		10,038
Corporate		5		(228	)		4,402		-		-			-		5		(228	)		4,402
Residential mortgage-backed - US agency		3		(20	)		1,869		-		-			-		3		(20	)		1,869
Collateralized mortgage obligations - Private label		1		(71	)		1,396		-		-			-		1		(71	)		1,396
Totals		26	$	(1,030	)	$	18,687		-	$	-		$	-		26	$	(1,030	)	$	18,687

The Company conducts a formal review of investment securities on a quarterly basis for the presence of other-than-temporary impairment (“OTTI”). The Company assesses whether OTTI is present when the fair value of a debt security is less than its amortized cost basis at the statement of condition date. Under these circumstances, OTTI is considered to have occurred (1) if we intend to sell the security; (2) if it is “more likely than not” we will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not anticipated to be sufficient to recover the entire amortized cost basis. The guidance requires that credit-related OTTI is recognized in earnings while non-credit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (“OCI”). Non-credit-related OTTI is based on other factors, including illiquidity and changes in the general interest rate environment. Presentation of OTTI is made in the consolidated statement of income on a gross basis, including both the portion recognized in earnings as well as the portion recorded in OCI. The gross OTTI would then be offset by the amount of non-credit-related OTTI, showing the net as the impact on earnings.

Management does not believe any individual unrealized loss in other securities within the portfolio as of December 31, 2017 represents OTTI. All securities which have been in an unrealized loss position for 12 months or more are issued by United States agencies or government sponsored enterprises and consist of mortgage-backed securities, collateralized mortgage obligations and direct agency financings. These positions in US government agency and government-sponsored enterprises are deemed to have no credit impairment, thus, the disclosed unrealized losses relate directly to changes in interest rates subsequent to the acquisition of the individual securities. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to the recovery of the amortized cost.

In determining whether OTTI has occurred for equity securities, the Company considers the applicable factors described above and the length of time the equity security’s fair value has been below the carrying amount. At December 31, 2016, the Company had one mutual fund investment, categorized as an equity security, with a fair value below its book value. This security, which was sold in 2017, at a realized loss $19,000, represented an ownership interest in a mutual fund primarily invested in adjustable-rate mortgage securities. This security had a fair value of $626,000 at December 31, 2016 and that value was $17,000 below its book value at that date.

Proceeds of $67.6 million and $33.2 million, respectively on sales and redemptions of securities for the years ended December 31 resulted in gross realized gains (losses) detailed below:

(In thousands)	2017			2016
Realized gains on investments	$	427		$	526
Realized gains on hedging activity		428			85
Realized losses on investments		(366	)		(17	)
	$	489		$	594

As of December 31, 2017 and December 31, 2016, securities with a fair value of $113.0 million and $96.4 million, respectively, were pledged to collateralize certain municipal deposit relationships. As of the same dates, securities with a fair value of $19.9 million and $12.9 million were pledged against certain borrowing arrangements.

Management has reviewed its loan and mortgage-backed securities portfolios and determined that, to the best of its knowledge, little or no exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of investing in, or originating, these types of investments or loans.

Loans

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

LOANS

NOTE 5: LOANS

Major classifications of loans are as follows:

	December 31,			December 31,
(In thousands)	2017			2016
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	216,793		$	199,000
Construction		5,558			8,505
Total residential mortgage loans		222,351			207,505

Commercial loans:
Real estate		192,525			150,698
Lines of credit		51,131			50,477
Other commercial and industrial		50,251			40,394
Tax exempt loans		10,405			12,523
Total commercial loans		304,312			254,092

Consumer loans:
Home equity and junior liens		25,935			24,722
Other consumer		28,646			6,293
Total consumer loans		54,581			31,015
Total loans		581,244			492,612
Net deferred loan fees		(413	)		(465	)
Less allowance for loan losses		(7,126	)		(6,247	)
Loans receivable, net	$	573,705		$	485,900

The Company originates residential mortgage, commercial and consumer loans largely to customers throughout Oswego, Onondaga and surrounding counties. Although the Company has a diversified loan portfolio, a substantial portion of its borrowers’ abilities to honor their contracts is dependent upon the counties’ employment and economic conditions.

Although the Bank may occasionally purchase or fund loan participation interests outside of its primary market areas, the Bank generally originates residential mortgage, commercial, and consumer loans largely to customers throughout Oswego and Onondaga counties. Although the Bank has a diversified loan portfolio, a substantial portion of its borrowers’ abilities to honor their loan contracts is dependent upon the counties’ employment and economic conditions.

The Bank acquired $15.6 million and $10.2 million of loans originated by an unrelated financial institution, located outside of the Bank’s market area, in January 2017 and April 2017, respectively. The acquired loan pools represented a 90% participating interest in a total of 1,231 loans secured by liens on automobiles with maturities ranging primarily from two to six years. These loans will be serviced through their respective maturities by the originating financial institution. At December 31, 2017 there were 1,082 loans outstanding with a remaining outstanding carrying value of $19.6 million. Since the acquisition of these loan pools, a total of two loans, with a combined outstanding balance of $44,800, have been charged-off as uncollectible.

As of December 31, 2017 and December 31, 2016, residential mortgage loans with a carrying value of $148.1 million and $140.3 million, respectively, have been pledged by the Company to the Federal Home Loan Bank of New York (“FHLBNY”) under a blanket collateral agreement to secure the Company’s line of credit and term borrowings.

Loan Origination / Risk Management

The Company has lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management and the board of directors reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by frequently providing management with reports related to loan production, loan quality, loan delinquencies, nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions.

Risk Characteristics of Portfolio Segments

Each portfolio segment generally carries its own unique risk characteristics.

The residential mortgage loan segment is impacted by general economic conditions, unemployment rates in the Bank’s service area, real estate values and the forward expectation of improvement or deterioration in economic conditions.

The commercial loan segment is impacted by general economic conditions but, more specifically, the industry segment in which each borrower participates. Unique competitive changes within a borrower’s specific industry, or geographic location could cause significant changes in the borrower’s revenue stream, and therefore, impact its ability to repay its obligations. Commercial real estate is also subject to general economic conditions but changes within this segment typically lag changes seen within the consumer and commercial segment. Included within this portfolio are both owner occupied real estate, in which the borrower occupies the majority of the real estate property and upon which the majority of the sources of repayment of the obligation is dependent upon, and non-owner occupied real estate, in which several tenants comprise the repayment source for this portfolio segment. The composition and competitive position of the tenant structure may cause adverse changes in the repayment of debt obligations for the non-owner occupied class within this segment.

The consumer loan segment is impacted by general economic conditions, unemployment rates in the geographic areas in which borrowers and loan collateral are located, and the forward expectation of improvement or deterioration in economic conditions.

Real estate loans, including residential mortgages, commercial real estate loans and home equity, comprise 76% of the portfolio in 2017, substantially identical to the composition in 2016, where such loans represented 78% of total loans. Loans secured by real estate generally provide strong collateral protection and thus significantly reduce the inherent credit risk in the portfolio.

Management has reviewed its loan portfolio and determined that, to the best of its knowledge, little or no exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of originating these types of loans.

Description of Credit Quality Indicators

The Company utilizes an eight tier risk rating system to evaluate the quality of its loan portfolio. Loans that are risk rated “1” through “4” are considered “Pass” loans. In accordance with regulatory guidelines, loans rated “5” through “8” are termed “criticized” loans and loans rated “6” through “8” are termed “classified” loans. A description of the Company’s credit quality indicators follows.

For Commercial Loans:

Prime: A loan that is fully secured by properly margined Pathfinder Bank deposit account(s) or an obligation of the US Government. It may also be unsecured if it is supported by a very strong financial condition and, in the case of a commercial loan, excellent management. There exists an unquestioned ability to repay the loan in accordance with its terms.

Strong: Desirable relationship of somewhat less stature than Prime grade. Possesses a sound documented repayment source, and back up, which will allow repayment within the terms of the loan. Individual loans backed by solid assets, character and integrity. Ability of individual or company management is good and well established. Probability of serious financial deterioration is unlikely.

Satisfactory: Stable financial condition with cash flow sufficient for debt service coverage. Satisfactory loans of average strength having some deficiency or vulnerability to changing economic or industry conditions but performing as agreed with documented evidence of repayment capacity. May be unsecured loans to borrowers with satisfactory credit and financial strength. Satisfactory provisions for management succession and a secondary source of repayment exists.

Satisfactory Watch: A four is not a criticized or classified credit. These credits do not display the characteristics of a criticized asset as defined by the regulatory definitions. A credit is given a Satisfactory Watch designation if there are matters or trends observed deserving attention somewhat beyond normal monitoring. Borrowing obligations may be handled according to agreement but could be adversely impacted by developing factors such as industry conditions, operating problems, litigation pending of a significant nature or declining collateral quality and adequacy.

Special Mention: A warning risk grade that portrays one or more weaknesses that may be tolerated in the short term. Assets in this category are currently protected but are potentially weak. This loan would not normally be booked as a new credit, but may have redeeming characteristics persuading the Bank to continue working with the borrower. Loans accorded this classification have potential weaknesses which may, if not checked or corrected, weaken the company’s assets, inadequately protect the Bank’s position or effect the orderly, scheduled reduction of the debt at some future time.

Substandard: The relationship is inadequately protected by the current net worth and cash flow capacity of the borrower, guarantor/endorser, or of the collateral pledged. Assets have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of the debt. The relationship shows deteriorating trends or other deficient areas. The loan may be nonperforming and expected to remain so for the foreseeable future. Relationship balances may be adequately secured by asset value; however a deteriorated financial condition may necessitate collateral liquidation to effect repayment. This would also include any relationship with an unacceptable financial condition requiring excessive attention of the officer due to the nature of the credit risk or lack of borrower cooperation.

Doubtful: The relationship has all the weaknesses inherent in a credit graded 5 with the added characteristic that the weaknesses make collection on the basis of currently existing facts, conditions and value, highly questionable or improbable. The possibility of some loss is extremely high, however its classification as an anticipated loss is deferred until a more exact determination of the extent of loss is determined. Loans in this category must be on nonaccrual.

Loss: Loans are considered uncollectible and of such little value that continuance as bankable assets is not warranted. It is not practicable or desirable to defer writing off this basically worthless asset even though partial recovery may be possible in the future.

For Residential Mortgage and Consumer Loans:

Residential mortgage and consumer loans are assigned a “Pass” rating unless the loan has demonstrated signs of weakness as indicated by the ratings below.

Special Mention: All loans sixty days past due are classified Special Mention. The loan is not upgraded until it has been current for six consecutive months.

Substandard: All loans 90 days past due are classified Substandard. The loan is not upgraded until it has been current for six consecutive months.

The risk ratings for classified loans are evaluated at least quarterly for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial, residential mortgage or consumer loans. See further discussion of risk ratings in Note 1.

The following table presents the segments and classes of the loan portfolio summarized by the aggregate pass rating and the criticized and classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system:

	As of December 31, 2017
			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	211,825	$	891	$	1,869	$	2,208	$	216,793
Construction		5,558				-		-		5,558
Total residential mortgage loans		217,383		891		1,869		2,208		222,351
Commercial loans:
Real estate		187,073		1,372		2,024		2,056		192,525
Lines of credit		50,353		195		523		60		51,131
Other commercial and industrial		48,892		407		532		420		50,251
Tax exempt loans		10,405		-		-		-		10,405
Total commercial loans		296,723		1,974		3,079		2,536		304,312
Consumer loans:
Home equity and junior liens		25,396		61		304		174		25,935
Other consumer		28,584		55		7		-		28,646
Total consumer loans		53,980		116		311		174		54,581
Total loans	$	568,086	$	2,981	$	5,259	$	4,918	$	581,244

	As of December 31, 2016
			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	194,377	$	1,445	$	2,115	$	1,063	$	199,000
Construction		8,505		-		-		-		8,505
Total residential mortgage loans		202,882		1,445		2,115		1,063		207,505
Commercial loans:
Real estate		143,126		3,714		3,858		-		150,698
Lines of credit		49,393		684		400		-		50,477
Other commercial and industrial		39,027		661		702		4		40,394
Tax exempt loans		12,523		-		-		-		12,523
Total commercial loans		244,069		5,059		4,960		4		254,092
Consumer loans:
Home equity and junior liens		23,963		170		389		200		24,722
Other consumer		6,224		17		8		44		6,293
Total consumer loans		30,187		187		397		244		31,015
Total loans	$	477,138	$	6,691	$	7,472	$	1,311	$	492,612

Nonaccrual and Past Due Loans

Loans are considered past due if the required principal and interest payments have not been received within thirty days of the payment due date.

An age analysis of past due loans, exclusive of deferred costs, segregated by class of loans were as follows:

	As of December 31, 2017
	30-59 Days		60-89 Days		90 Days
	Past Due		Past Due		and		Total				Total Loans
(In thousands)	and Accruing		and Accruing		Over		Past Due		Current		Receivable
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	1,196	$	925	$	2,088	$	4,209	$	212,584	$	216,793
Construction		-		-		-		-		5,558		5,558
Total residential mortgage loans		1,196		925		2,088		4,209		218,142		222,351
Commercial loans:
Real estate		720		2,056		1,545		4,321		188,204		192,525
Lines of credit		1,482		31		132		1,645		49,486		51,131
Other commercial and industrial		575		60		766		1,401		48,850		50,251
Tax exempt loans		-		-		-		-		10,405		10,405
Total commercial loans		2,777		2,147		2,443		7,367		296,945		304,312
Consumer loans:
Home equity and junior liens		94		74		300		468		25,467		25,935
Other consumer		192		50		63		305		28,341		28,646
Total consumer loans		286		124		363		773		53,808		54,581
Total loans	$	4,259	$	3,196	$	4,894	$	12,349	$	568,895	$	581,244

	As of December 31, 2016
	30-59 Days		60-89 Days		90 Days
	Past Due		Past Due		and		Total				Total Loans
(In thousands)	and Accruing		and Accruing		Over		Past Due		Current		Receivable
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	1,247	$	832	$	2,560	$	4,639	$	194,361	$	199,000
Construction		-		-		-		-		8,505		8,505
Total residential mortgage loans		1,247		832		2,560		4,639		202,866		207,505
Commercial loans:
Real estate		1,063		375		1,223		2,661		148,037		150,698
Lines of credit		819		-		-		819		49,658		50,477
Other commercial and industrial		333		-		640		973		39,421		40,394
Tax exempt loans		-		-		-		-		12,523		12,523
Total commercial loans		2,215		375		1,863		4,453		249,639		254,092
Consumer loans:
Home equity and junior liens		105		157		338		600		24,122		24,722
Other consumer		8		13		50		71		6,222		6,293
Total consumer loans		113		170		388		671		30,344		31,015
Total loans	$	3,575	$	1,377	$	4,811	$	9,763	$	482,849	$	492,612

Year-end nonaccrual loans, segregated by class of loan, were as follows:

	December 31,		December 31,
(In thousands)	2017		2016
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	2,088	$	2,560
		2,088		2,560
Commercial loans:
Real estate		1,545		1,223
Lines of credit		132		-
Other commercial and industrial		766		640
		2,443		1,863
Consumer loans:
Home equity and junior liens		300		338
Other consumer		63		50
		363		388
Total nonaccrual loans	$	4,894	$	4,811

There were no loans past due ninety days or more and still accruing interest at December 31, 2017 or 2016.

The Company is required to disclose certain activities related to Troubled Debt Restructurings (“TDR”) in accordance with accounting guidance. Certain loans have been modified in a TDR where economic concessions have been granted to a borrower who is experiencing, or expected to experience, financial difficulties. These economic concessions could include a reduction in the loan interest rate, extension of payment terms, reduction of principal amortization, or other actions that it would not otherwise consider for a new loan with similar risk characteristics.

The Company is required to disclose new TDRs for each reporting period for which an income statement is being presented. Pre-modification outstanding recorded investment is the principal loan balance less the provision for loan losses before the loan was modified as a TDR. Post-modification outstanding recorded investment is the principal balance less the provision for loan losses after the loan was modified as a TDR. Additional provision for loan losses is the change in the allowance for loan losses between the pre-modification outstanding recorded investment and post-modification outstanding recorded investment.

The Company had one loan that had been modified as a TDR for the year ended December 31, 2017, which subsequently paid off in the fourth quarter of 2017. Both the pre-modification and post-modification recorded investment in the commercial real estate loan was $2.0 million as a result of economic concessions granted, which included extended interest only payment terms. The Company was not required to increase the specific reserves against this loan during the third quarter of 2017.

The table below details loans that had been modified as TDRs for the year ended December 31, 2016.

	For the year ended December 31, 2016
(In thousands)	Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Additional provision for loan losses
Individually evaluated for impairment:
Residential mortgage loans		3	$	127	$	135	$	29
Commercial real estate loans		1	$	2,088	$	2,088	$	-

The TDRs individually evaluated for impairment have been classified as TDRs due to economic concessions granted, which consisted of additional funds advanced without associated increases in collateral, interest rate reduction, extended term and/or extended interest only payment terms. The Company was required to increase the specific reserves against the loans individually reviewed for impairment by $29,000, which was a component of the provision for loan losses in the fourth quarter of 2016.

The Company is required to disclose loans that have been modified as TDRs within the previous 12 months in which there was payment default after the restructuring. The Company defines payment default as any loans 90 days past due on contractual payments.

The Company had no loans that had been modified as TDRs during the twelve months prior to December 31, 2017, which had subsequently defaulted during the year ended December 31, 2017.

The Company had no loans that had been modified as TDRs during the twelve months prior to December 31, 2016, which had subsequently defaulted during the year ended December 31, 2016.

When the Company modifies a loan within a portfolio segment that is individually evaluated for impairment, a potential impairment is analyzed either based on the present value of the expected future cash flows discounted at the interest rate of the original loan terms or the fair value of the collateral less costs to sell. If it is determined that the value of the loan is less than its recorded investment, then impairment is recognized as a component of the provision for loan losses, an associated increase to the allowance for loan losses or as a charge-off to the allowance for loan losses in the current period.

Impaired Loans

The following table summarizes impaired loans information by portfolio class:

	December 31, 2017						December 31, 2016
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
(In thousands)	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
1-4 family first-lien residential mortgages	$	900	$	909	$	-	$	850	$	857	$	-
Commercial real estate		3,314		3,360		-		4,254		4,344		-
Commercial lines of credit		507		507		-		400		400		-
Other commercial and industrial		523		524		-		470		470		-
Home equity and junior liens		80		80		-		140		140		-
With an allowance recorded:
1-4 family first-lien residential mortgages		958		958		210		763		763		117
Commercial real estate		2,186		2,187		320		818		872		455
Commercial lines of credit		40		40		40		-		-		-
Other commercial and industrial		525		525		391		552		552		553
Home equity and junior liens		210		210		142		345		345		5
Total:
1-4 family first-lien residential mortgages		1,858		1,867		210		1,613		1,620		117
Commercial real estate		5,500		5,547		320		5,072		5,216		455
Commercial lines of credit		547		547		40		400		400		-
Other commercial and industrial		1,048		1,049		391		1,022		1,022		553
Home equity and junior liens		290		290		142		485		485		5
Totals	$	9,243	$	9,300	$	1,103	$	8,592	$	8,743	$	1,130

The following table presents the average recorded investment in impaired loans for the years ended December 31:

(In thousands)	2017		2016
1-4 family first-lien residential mortgages	$	1,553	$	777
Commercial real estate		5,097		4,325
Commercial lines of credit		447		479
Other commercial and industrial		976		724
Home equity and junior liens		283		325
Other consumer		-		2
Total	$	8,356	$	6,632

The following table presents the cash basis interest income recognized on impaired loans for the years ended December 31:

(In thousands)	2017		2016
1-4 family first-lien residential mortgages	$	71	$	64
Commercial real estate		247		161
Commercial lines of credit		27		22
Other commercial and industrial		30		44
Home equity and junior liens		13		13
Other consumer		-		-
Total	$	388	$	304

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Allowance for Loan Losses

12 Months Ended

Dec. 31, 2017

Allowance For Loan Losses [Abstract]

ALLOWANCE FOR LOAN LOSSES

NOTE 6: ALLOWANCE FOR LOAN LOSSES

Changes in the allowance for loan losses for the years ended December 31, 2017 and 2016 and information pertaining to the allocation of the allowance for loan losses and balances of the allowance for loan losses and loans receivable based on individual and collective impairment evaluation by loan portfolio class at the indicated dates are summarized in the tables below. An allocation of a portion of the allowance to a given portfolio class does not limit the Company’s ability to absorb losses in another portfolio class.

	December 31, 2017
	1-4 family
	first-lien											Other
	residential					Commercial			Commercial			commercial
(In thousands)	mortgage			Construction		real estate			lines of credit			and industrial
Allowance for loan losses:
Beginning Balance	$	759		$	-	$	2,935		$	397		$	1,658
Charge-offs		(166	)		-		(505	)		(60	)		(22	)
Recoveries		13			-		-			-			15
Provisions (credits)		259			-		1,159			398			(437	)
Ending balance	$	865		$	-	$	3,589		$	735		$	1,214
Ending balance: related to loans individually evaluated for impairment	$	210		$	-	$	320		$	40		$	391
Ending balance: related to loans collectively evaluated for impairment	$	655		$	-	$	3,269		$	695		$	823
Loans receivables:
Ending balance	$	216,793		$	5,558	$	192,525		$	51,131		$	50,251
Ending balance: individually evaluated for impairment	$	1,858		$	-	$	5,500		$	547		$	1,048
Ending balance: collectively evaluated for impairment	$	214,935		$	5,558	$	187,025		$	50,584		$	49,203

			Home equity			Other
	Tax exempt		and junior liens			consumer			Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1	$	331		$	166		$	-	$	6,247
Charge-offs		-		(69	)		(142	)		-	$	(964	)
Recoveries		-		6			40			-	$	74
Provisions		-		246			144			-	$	1,769
Ending balance	$	1	$	514		$	208		$	-	$	7,126
Ending balance: related to loans individually evaluated for impairment	$	-	$	142		$	-		$	-	$	1,103
Ending balance: related to loans collectively evaluated for impairment	$	1	$	372		$	208		$	-	$	6,023
Loans receivables:
Ending balance	$	10,405	$	25,935		$	28,646				$	581,244
Ending balance: individually evaluated for impairment	$	-	$	290		$	-				$	9,243
Ending balance: collectively evaluated for impairment	$	10,405	$	25,645		$	28,646				$	572,001

	December 31, 2016
	1-4 family
	first-lien											Other
	residential					Commercial			Commercial			commercial
(In thousands)	mortgage			Construction		real estate			lines of credit			and industrial
Allowance for loan losses:
Beginning Balance	$	581		$	-	$	2,983		$	401		$	1,270
Charge-offs		(242	)		-		-			(69	)		-
Recoveries		13			-		6			11			14
Provisions (credits)		407			-		(54	)		54			374
Ending balance	$	759		$	-	$	2,935		$	397		$	1,658
Ending balance: related to loans individually evaluated for impairment	$	117			-	$	455		$	-		$	553
Ending balance: related to loans collectively evaluated for impairment	$	642			-	$	2,480		$	397		$	1,105
Loans receivables:
Ending balance	$	199,000		$	8,505	$	150,698		$	50,477		$	40,394
Ending balance: individually evaluated for impairment	$	1,613		$	-	$	5,072		$	400		$	1,022
Ending balance: collectively evaluated for impairment	$	197,387		$	8,505	$	145,626		$	50,077		$	39,372

				Home equity			Other
	Tax exempt			and junior liens			consumer			Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	3		$	350		$	118		$	-	$	5,706
Charge-offs		-			(147	)		(61	)		-		(519	)
Recoveries		-			10			53			-		107
Provisions (credits)		(2	)		118			56			-		953
Ending balance	$	1		$	331		$	166		$	-	$	6,247
Ending balance: related to loans individually evaluated for impairment	$	-		$	5		$	-			-	$	1,130
Ending balance: related to loans collectively evaluated for impairment	$	1		$	326		$	166			-	$	5,117
Loans receivables:
Ending balance	$	12,523		$	24,722		$	6,293				$	492,612
Ending balance: individually evaluated for impairment	$	-		$	485		$	-				$	8,592
Ending balance: collectively evaluated for impairment	$	12,523		$	24,237		$	6,293				$	484,020

The Company’s methodology for determining its allowance for loan losses includes an analysis of qualitative factors that are added to the historical loss rates in arriving at the total allowance for loan losses needed for this general pool of loans. The qualitative factors include:

•

Changes in national and local economic trends;

•

The rate of growth in the portfolio;

•

Trends of delinquencies and nonaccrual balances;

•

Changes in loan policy; and

•

Changes in lending management experience and related staffing.

Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. These qualitative factors, applied to each product class, make the evaluation inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan losses analysis and calculation.

The allocation of the allowance for loan losses summarized on the basis of the Company’s calculation methodology was as follows:

	December 31, 2017
	1-4 family
	first-lien								Other
	residential				Commercial		Commercial		commercial
(In thousands)	mortgage		Construction		real estate		lines of credit		and industrial
Specifically reserved	$	210	$	-	$	320	$	40	$	391
Historical loss rate		104		-		103		40		15
Qualitative factors		551		-		3,166		655		808
Total	$	865	$	-	$	3,589	$	735	$	1,214

			Home equity		Other
	Tax exempt		and junior liens		consumer		Unallocated		Total
Specifically reserved	$	-	$	142	$	-	$	-	$	1,103
Historical loss rate		-		41		59		-		362
Qualitative factors		1		331		149		-		5,661
Total	$	1	$	514	$	208	$	-	$	7,126

	December 31, 2016
	1-4 family
	first-lien								Other
	residential				Commercial		Commercial		commercial
(In thousands)	mortgage		Construction		real estate		lines of credit		and industrial
Specifically reserved	$	117	$	-	$	455	$	-	$	553
Historical loss rate		106		-		45		31		50
Qualitative factors		536		-		2,435		366		1,055
Total	$	759	$	-	$	2,935	$	397	$	1,658

			Home equity		Other
	Tax exempt		and junior liens		consumer		Unallocated		Total
Specifically reserved	$	-	$	5	$	-	$	-	$	1,130
Historical loss rate		-		35		16		-		283
Qualitative factors		1		291		150		-		4,834
Total	$	1	$	331	$	166	$	-	$	6,247

Servicing

12 Months Ended

Dec. 31, 2017

Servicing Asset [Abstract]

SERVICING

NOTE 7: SERVICING

Loans serviced for others are not included in the accompanying consolidated statements of condition. At December 31, 2017 and 2016, the Bank serviced 231 and 268 residential mortgage loans for others, respectively. The unpaid principal balances of mortgage loans serviced for others were $14.3 million and $17.0 million at December 31, 2017 and 2016, respectively. The balance of capitalized servicing rights included in other assets at December 31, 2017 and 2016, was $28,000 and $40,000, respectively.

The following summarizes mortgage servicing rights capitalized and amortized:

(In thousands)	2017		2016
Mortgage servicing rights capitalized	$	-	$	-
Mortgage servicing rights amortized	$	12	$	12

Premises and Equipment

12 Months Ended

Dec. 31, 2017

Property Plant And Equipment [Abstract]

Premises and Equipment

NOTE 8: PREMISES AND EQUIPMENT

A summary of premises and equipment at December 31, is as follows:

(In thousands)	2017		2016
Land	$	2,205	$	2,205
Buildings		14,917		13,704
Furniture, fixtures and equipment		13,515		12,948
Construction in progress		650		455
		31,287		29,312
Less: Accumulated depreciation		15,170		14,135
	$	16,117	$	15,177

Depreciation expense was $1.0 million in both 2017 and 2016.

Foreclosed Real Estate

12 Months Ended

Dec. 31, 2017

Real Estate Owned Disclosure Of Detailed Components [Abstract]

Foreclosed Real Estate

NOTE 9: FORECLOSED REAL ESTATE

The Company is required to disclose the carrying amount of foreclosed residential real estate properties held at each reporting period as a result of obtaining physical possession of the property.

(Dollars in thousands)

Number of

properties

December 31,

2017

Number of

properties

December 31,

2016

Foreclosed residential real estate

468

393

At December 31, 2017, the Company reported $805,000 in residential real estate loans in the process of foreclosure.

- Definition

The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 40
-Section 40
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=84176060&loc=d3e18551-111553

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 40
-Section 40
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176060&loc=d3e18511-111553

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=82891408&loc=d3e4437-111522

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 35
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=29634951&loc=d3e1424-110224

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section S99
-Paragraph 6
-Subparagraph (SX 210.5-04(c)(Schedule III))
-URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(10)(4))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 970
-SubTopic 360
-Section S99
-Paragraph 1
-Subparagraph (SX 210.12-28)
-URI http://asc.fasb.org/extlink&oid=6590653&loc=d3e638233-123024

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 35
-Paragraph 43
-URI http://asc.fasb.org/extlink&oid=29634951&loc=d3e1739-110224

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(8))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

+ Details

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 10: GOODWILL AND INTANGIBLE ASSETS

Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized, but is evaluated annually for impairment or between annual evaluations in certain circumstances. Management performs an annual assessment of the Company’s goodwill to determine whether or not any impairment of the carrying value may exist.

Of the $4.5 million of goodwill carried on the Company’s books as of December 31, 2017, $3.8 million of this amount was due to prior periods acquisitions of bank branches and $696,000 was due to the 2013 acquisition of the FitzGibbons Agency by Pathfinder Risk Management Company, Inc. and the 2015 acquisition of the Huntington Agency.

The Company is permitted to assess qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than the carrying value. Based on the results of the assessment, management has determined that the carrying value of goodwill in the amount of $4.5 million is not impaired as of December 31, 2017.

The identifiable intangible asset of $182,000 as of December 31, 2017 was due to the acquisition of the FitzGibbons and Huntington Agencies and represents the amortized carrying amount of the customer lists intangible. The weighted average amortization period of this intangible asset is 7.0 years.

The gross carrying amount and annual amortization for this identifiable intangible asset are as follows:

	December 31,
(In thousands)	2017			2016
Gross carrying amount	$	198		$	214
Accumulated amortization		(16	)		(16	)
Net amortizing intangibles	$	182		$	198

The estimated amortization expense for each of the five succeeding years ended December 31, is as follows:

(In thousands)
2018	$	16
2019		16
2020		16
2021		16
2022		16
Thereafter		102
Total	$	182

Deposits

12 Months Ended

Dec. 31, 2017

Deposits [Abstract]

DEPOSITS

NOTE 11: DEPOSITS

A summary of deposits at December 31 is as follows:

(In thousands)	2017		2016
Savings accounts	$	80,587	$	80,139
Time accounts		160,736		132,007
Time accounts of $250,000 or more		52,691		57,349
Money management accounts		14,905		14,718
MMDA accounts		253,088		192,692
Demand deposit interest-bearing		66,093		53,587
Demand deposit noninterest-bearing		89,783		75,282
Mortgage escrow funds		5,720		5,209
Total Deposits	$	723,603	$	610,983

At December 31, 2017, the scheduled maturities of time deposits are as follows:

(In thousands)
Year of Maturity:
2018	$	146,318
2019		42,244
2020		14,522
2021		5,889
2022		2,613
Thereafter		1,841
Total	$	213,427

In addition to deposits obtained from its business operations within its target market areas, the Bank also obtains brokered deposits through various programs administered by Promontory Interfinancial Network.

	At December 31,
	2017						2016
(In thousands)	Non-Brokered		Brokered		Total		Non-Brokered		Brokered		Total
Savings accounts	$	80,587	$	-	$	80,587	$	80,139	$	-	$	80,139
Time accounts		109,666		51,070	$	160,736		89,200		42,807		132,007
Time accounts of $250,000 or more		52,691		-	$	52,691		57,349		-		57,349
Money management accounts		14,905		-	$	14,905		14,718		-		14,718
MMDA accounts		159,032		94,056	$	253,088		105,755		86,937		192,692
Demand deposit interest-bearing		66,093		-	$	66,093		53,587		-		53,587
Demand deposit noninterest-bearing		89,783		-	$	89,783		75,282		-		75,282
Mortgage escrow funds		5,720		-	$	5,720		5,209		-		5,209
Total Deposits	$	578,477	$	145,126	$	723,603	$	481,239	$	129,744	$	610,983

Borrowed Funds

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

BORROWED FUNDS

NOTE 12: BORROWED FUNDS

The composition of borrowings (excluding subordinated loans) at December 31 is as follows:

(In thousands)	2017		2016
Short-term:
FHLB Advances	$	30,600	$	42,000
Deferred fees hedging		-		(53	)
Total short-term borrowings	$	30,600	$	41,947
Long-term:
FHLB advances	$	43,288	$	17,000
Total long-term borrowings	$	43,288	$	17,000

The principal balances, interest rates and maturities of the outstanding long-term borrowings, all of which are at a fixed rate, at December 31, 2017 are as follows:

Term	Principal		Rates
(Dollars in thousands)
Advances with FHLB
Due within 1 year	$	2,000	1.04%
Due within 2 years		31,228	1.16-2.00%
Due within 10 years		10,060	1.62-2.55%
Total advances with FHLB	$	43,288
Total long-term fixed rate borrowings	$	43,288

At December 31, 2017, scheduled repayments of long-term debt are as follows:

(In thousands)
2018	$	2,000
2019		31,228
2020		7,060
2021		1,000
2022		2,000
Thereafter		-
Total	$	43,288

The Company has access to Federal Home Loan Bank advances, under which it can borrow at various terms and interest rates. Residential mortgage loans with a carrying value of $148.1 million and FHLB stock with a carrying value of $3.9 million have been pledged by the Company under a blanket collateral agreement to secure the Company’s borrowings at December 31, 2017. The total outstanding indebtedness under borrowing facilities with the FHLB cannot exceed the total value of the assets pledged under the blanket collateral agreement. The Company has a $19.9 million line of credit available at December 31, 2017 with the Federal Reserve Bank of New York through its Discount Window and has pledged various corporate and municipal securities against the line. The Company has $14.4 million in lines of credit available with three other correspondent banks. $9.4 million of that line of credit is available on an unsecured basis and the remaining $5.0 million must be collateralized with marketable investment securities. Interest on the lines is determined at the time of borrowing.

Subordinated Loans

12 Months Ended

Dec. 31, 2017

Subordinated Borrowings [Abstract]

SUBORDINATED LOANS

NOTE 13: SUBORDINATED LOANS

The Company has a non-consolidated subsidiary trust, Pathfinder Statutory Trust II, of which the Company owns 100% of the common equity. The Trust issued $5,000,000 of 30-year floating rate Company-obligated pooled capital securities of Pathfinder Statutory Trust II (“Floating-Rate Debentures”). The Company borrowed the proceeds of the capital securities from its subsidiary by issuing floating rate junior subordinated deferrable interest debentures having substantially similar terms. The capital securities mature in 2037 and are treated as Tier 1 capital by the Federal Deposit Insurance Corporation and the Federal Reserve Board (“FRB”). The capital securities of the trust are a pooled trust preferred fund of Preferred Term Securities VI, Ltd. and are tied to the 3-month LIBOR (1.69%) plus 1.65% for a total of 3.34% at December 31, 2017 with a five-year call provision. The Company guarantees all of these securities.

The Company's equity interest in the trust subsidiary is included in other assets on the Consolidated Statements of Financial Condition at December 31, 2017 and 2016. For regulatory reporting purposes, the Federal Reserve has indicated that the preferred securities will continue to qualify as Tier 1 Capital subject to previously specified limitations, until further notice. If regulators make a determination that Trust Preferred Securities can no longer be considered in regulatory capital, the securities become callable and the Company may redeem them.

On October 15, 2015, the Company executed the $10.0 million non-amortizing subordinated loan with an unrelated third party that is scheduled to mature on October 1, 2025. The Company has the right to prepay the subordinated loan at any time after October 15, 2020 without penalty. The terms of the subordinated loan required interest payments at an annual interest rate of 3.50% from October 15, 2015 to February 29, 2016. The annual interest rate charged the Company increased to 6.25% on March 1, 2016 through the maturity date. The Subordinated Loan is senior in the Company’s credit repayment hierarchy only to the Company’s common equity and, as a result, qualifies as Tier 2 capital for all future periods when applicable. The Company paid $172,000 in origination and legal fees as part of this transaction. These fees will be amortized over the life of the subordinated loan through its first call date using the effective interest method. The effective cost of funds related to this transaction is 6.44% calculated under this method.

The composition of subordinated loans at December 31 is as follows:

(In thousands)	2017		2016
Subordinated loans:
Junior subordinated debenture	$	5,155	$	5,155
Subordinated loan		9,904		9,870
Total subordinated loans	$	15,059	$	15,025

The principal balances, interest rates and maturities of the subordinated loans at December 31, 2017 are as follows:

Term	Principal		Rates
(Dollars in thousands)
Subordinated loans:
Due within 10 years	$	9,904	6.48%
Due within 20 years		5,155	3-Month Libor + 1.65%
Total subordinated loans	$	15,059

At December 31, 2017, scheduled repayments of the subordinated loans:

(In thousands)
2018	$	-
2019		-
2020		-
2021		-
2022		-
Thereafter		15,059
Total	$	15,059

Employee Benefits and Deferred Compensation and Supplemental Retirement Plans

12 Months Ended

Dec. 31, 2017

Compensation And Retirement Disclosure [Abstract]

EMPLOYEE BENEFITS AND DEFERRED COMPENSATION AND SUPPLEMENTAL RETIREMENT PLANS

NOTE 14: Employee Benefits and Deferred Compensation and Supplemental Retirement Plans

The Company has a noncontributory defined benefit pension plan covering substantially all employees. The plan provides defined benefits based on years of service and final average salary. On May 14, 2012, the Company informed its employees of its decision to freeze participation and benefit accruals under the plan, primarily to reduce some of the volatility in earnings that can accompany the maintenance of a defined benefit plan. The plan was frozen on June 30, 2012. Compensation earned by employees up to June 30, 2012 is used for purposes of calculating benefits under the plan but there will be no future benefit accruals after this date. Participants as of June 30, 2012 will continue to earn vesting credit with respect to their frozen accrued benefits as they continue to work. In addition, the Company provides certain health and life insurance benefits for a limited number of eligible retired employees. The healthcare plan is contributory with participants’ contributions adjusted annually; the life insurance plan is noncontributory. Employees with less than 14 years of service as of January 1, 1995, are not eligible for the health and life insurance retirement benefits.

The following tables set forth the changes in the plans’ benefit obligations, fair value of plan assets and the plans’ funded status as of December 31:

	Pension Benefits						Postretirement Benefits
(In thousands)	2017			2016			2017			2016
Change in benefit obligations:
Benefit obligations at beginning of year	$	9,323		$	9,319		$	154		$	159
Service cost		-			-			-			-
Interest cost		473			464			8			8
Actuarial loss (gain)		916			(231	)		332			-
Benefits paid		(243	)		(229	)		(13	)		(13	)
Benefit obligations at end of year		10,469			9,323			481			154
Change in plan assets:
Fair value of plan assets at beginning of year		13,634			12,808			-			-
Actual return on plan assets		1,565			1,055			-			-
Benefits paid		(243	)		(229	)		(13	)		(13	)
Employer contributions		-			-			13			13
Fair value of plan assets at end of year		14,956			13,634			-			-
Funded Status - asset (liability)	$	4,487		$	4,311		$	(481	)	$	(154	)

The funded status of the pension was recorded within other assets on the statement of condition. The unfunded status of the postretirement plan is recorded as a liability on the statement of condition.

Amounts recognized in accumulated other comprehensive loss as of December 31 are as follows:

	Pension Benefits				Postretirement Benefits
(In thousands)	2017		2016		2017		2016
Net loss/(gain)	$	2,827	$	2,685	$	176	$	(165	)
Tax Effect		1,131		1,074		70		(66	)
	$	1,696	$	1,611	$	106	$	(99	)

Gains and losses in excess of 10% of the greater of the benefit obligation or the fair value of assets are amortized over the average remaining service period of active participants.

The Company utilized the actual projected cash flows of the participants in both plans for the years ended December 31, 2017 and December 31, 2016. The following points address the approach taken.

An analysis of the defined benefit pension plan’s expected future cash flows and high-quality fixed income investments currently available and expected to be available during the period to maturity of the pension benefits yielded a single discount rate of 4.58% at December 31, 2017.

An analysis of the postretirement health plan’s expected future cash flows and high-quality fixed-income investments currently available and expected to be available during the period to maturity of the retiree medical benefits yielded a single discount rate of 4.58% at December 31, 2017.

Each discount rate was developed by matching the expected future cash flows of Pathfinder Bank to high quality bonds. Every bond considered has earned ratings of at least AA by Fitch Group, AA by Standard & Poor’s, or Aa2 by Moody’s Investor Services.

The accumulated benefit obligation for the defined benefit pension plan was $10.5 million and $9.3 million at December 31, 2017 and 2016, respectively. The postretirement plan had an accumulated benefit obligation of $481,000 and $154,000 at December 31, 2017 and 2016, respectively.

The significant assumptions used in determining the benefit obligations as of December 31, are as follows:

	Pension Benefits						Postretirement Benefits
	2017			2016			2017			2016
Weighted average discount rate		4.58	%		5.15	%		4.58	%		5.32	%
Rate of increase in future compensation levels		-			-			-			-

Assumed health care cost trend rates have a significant effect on the amounts reported for the postretirement health care plan. The annual rates of increase in the per capita cost of covered medical and prescription drug benefits for future years were assumed to be 5.00% for 2018, gradually decreasing to 4.50% in 2021 and remain at that level thereafter.

The composition of the net periodic benefit plan cost for the years ended December 31 is as follows:

	Pension Benefits						Postretirement Benefits
(In thousands)	2017			2016			2017			2016
Service cost	$	-		$	-		$	-		$	-
Interest cost		473			464			8			8
Expected return on plan assets		(945	)		(951	)		-			-
Amortization of transition obligation		-			-			-			-
Amortization of net losses/(gains)		154			226			(3	)		(3	)
Amortization of unrecognized past service liability		-			-			(5	)		(5	)
Net periodic benefit plan benefit	$	(318	)	$	(261	)	$	-		$	-

The significant assumptions used in determining the net periodic benefit plan cost for years ended December 31, were as follows:

	Pension Benefits						Postretirement Benefits
	2017			2016			2017			2016
Weighted average discount rate		4.58	%		5.05	%		4.58	%		5.23	%
Expected long term rate of return on plan assets		7.00	%		7.50	%		-			-
Rate of increase in future compensation levels		-			-			-			-

The long term rate of return on assets assumption was set based on historical returns earned by equities and fixed income securities, adjusted to reflect expectations of future returns as applied to the plan’s target allocation of asset classes. Equities and fixed income securities were assumed to earn real rates of return in the ranges of 6.0%-8.0% and 3.0%-5.0%, respectively. The long-term inflation rate was estimated to be 2.5%. When these overall return expectations are applied to the plan’s target allocation, the expected rate of return was determined to be in the range of 5.0% to 7.0%. Management chose to use a 7.0% expected long-term rate of return in 2017 and a 7.0% expected long-term rate of return in 2018 reflecting current economic conditions and expected rates of return. Based on the $15.0 million fair value of plan assets at December 31, 2017, each 50 basis point decrease in the expected long-term rate of return would reduce after tax net income at 2018 expected marginal tax rate of 26.1% by approximately $55,000.

The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit plan income during 2018 is $164,000. The estimated amortization of the unrecognized transition obligation and actuarial loss for the postretirement health plan in 2018 is $13,000. The expected net periodic benefit plan benefit for 2018 is estimated to be $371,000 for both retirement plans in aggregate.

Plan assets are invested in four diversified investment funds of the Pentegra Retirement Trust (the “Trust”, formerly known as RSI Retirement Trust). The Trust has been given discretion by the Plan Sponsor to determine the appropriate strategic asset allocation versus plan liabilities, as governed by the Trust’s Investment Policy Statement. The Plan is structured to utilize a Liability Driven Investment (LDI) approach which seeks to fund the current and future liabilities of the Plan and aims to mitigate funded status and contribution volatility.

The Plan’s asset allocation targets to hold 38% of assets in equity securities via investment in the Long-Term Growth – Equity Portfolio (‘LTGE’), 16% in intermediate-term investment grade bonds via investment in the Long-Term Growth – Fixed-Income Portfolio (‘LTGFI’), 35% in long duration bonds via the Liability Focused Fixed-Income Portfolio (‘LFFI’), 10% in an alternative asset fund (the ALT Portfolio), and 1% in a cash equivalents portfolio (for liquidity).

LTGE is a diversified portfolio that invests in a number of actively and passively managed equity-focused mutual funds and collective investment trusts. The Portfolio holds a diversified mix of equity funds in order to gain exposure to the U.S. and non-U.S. equity markets. LTGFI is a diversified portfolio that invests in a number of fixed-income mutual funds and collective investment trusts. The Portfolio invests primarily in intermediate-term bond funds with a focus on Core Plus fixed-income investment approaches. LFFI is a diversified high quality fixed-income portfolio that currently invests in passively managed collective investment trusts that hold long duration bonds. The ALT Portfolio invests in professionally managed private funds that hold alternative assets. The Portfolio currently invests in long/short equity hedge funds.

The investment objectives, investment strategies and risk of each of the daily valued and unitized Portfolios and the funds held within the Portfolios are detailed in the Private Placement Memorandum and the Trust’s Investment Policy Statement.

The overall long-term investment objectives are to maintain plan assets at a level that will sufficiently cover long-term obligations and to generate a return on plan assets that will meet or exceed the rate at which long-term obligations will grow. The LTGE and LTGFI Portfolios are designed to provide long-term growth of equity and fixed-income assets with the objective of achieving an investment return in excess of the cost of funding the active life, deferred vested, and all 30-year term and longer obligations of retired lives in the Trust. The LFFI Portfolio is designed with a relatively long duration and to be correlated with plan liabilities. The ALT Strategy is designed to add diversification via the addition of relatively low correlation assets. Risk/volatility is further managed by the distinct investment objectives of each of the Trust’s Portfolios.

In addition, significant consideration is paid to the plan’s funding levels when determining the overall asset allocation. If the plan is considered to be well-funded, approximately 65% of the plan’s assets are allocated to equities and approximately 35% allocated to fixed-income. Asset rebalancing normally occurs when the equity and fixed-income allocations vary by more than 10% from their respective targets (i.e., a 10% policy range guideline).

Pension plan assets measured at fair value are summarized below:

	At December 31, 2017
(In thousands)	Level 1		Level 2		Level 3		Total Fair Value
Asset Category:
Mutual funds - equity
Large-cap value (a)	$	-	$	1,058	$	-	$	1,058
Large-cap Growth (b)		-		1,102		-		1,102
Large-cap Core (c)		-		733		-		733
Mid-cap Value (d)		-		236		-		236
Mid-cap Growth (e)		-		223		-		223
Mid-cap Core (f)		-		239		-		239
Small-cap Value (g)		-		178		-		178
Small-cap Growth (h)		-		169		-		169
Small-cap Core (i)		-		349		-		349
International Equity (j)		-		1,419		-		1,419
Equity -Total		-		5,706		-		5,706
Fixed Income Funds
Fixed Income-US Core (k)		-		1,713		-		1,695
Intermediate Duration (l)		-		3,075		-		2,932
Long Duration (m)		-		2,630		-		2,474
Fixed Income-Total		-		7,418		-		7,418
Long/Short Equity(n)		-		1,533		-		1,533
Company Common Stock		-		-		-		-
Cash Equivalents-Money market*		58		241		-		299
Total	$	58	$	14,898	$	-	$	14,956

	At December 31, 2016
(In thousands)	Level 1		Level 2		Level 3		Total Fair Value
Asset Category:
Mutual funds - equity
Large-cap value (a)	$	-	$	958	$	-	$	958
Large-cap Growth (b)		-		860		-		860
Large-cap Core (c)		-		609		-		609
Mid-cap Value (d)		-		204		-		204
Mid-cap Growth (e)		-		186		-		186
Mid-cap Core (f)		-		209		-		209
Small-cap Value (g)		-		167		-		167
Small-cap Growth (h)		-		140		-		140
Small-cap Core (i)		-		312		-		312
International Equity (j)		-		1,131		-		1,131
Equity -Total		-		4,776		-		4,776
Fixed Income Funds
Fixed Income-US Core (k)		-		1,695		-		1,695
Intermediate Duration (l)		-		2,932		-		2,932
Long Duration (m)		-		2,474		-		2,474
Fixed Income-Total		-		7,101		-		7,101
Long/Short Equity(n)		-		1,165		-		1,165
Company Common Stock		-		-		-		-
Cash Equivalents-Money market*		70		522		-		592
Total	$	70	$	13,564	$	-	$	13,634

*Includes cash equivalents investments in equity and fixed income strategies

This category contains large-cap stocks with above-average yield. The portfolio typically holds between 60 and 70 stocks.

This category seeks long-term capital appreciation by investing primarily in large growth companies based in the U.S.

This fund tracks the performance of the S&P 500 index by purchasing the securities represented in the index in approximately the same weightings as the index.

This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Value Index.

This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Growth Index.

This category seeks to track the performance of the S&P Midcap 400 Index.

This category consists of a selection of investments based on the Russell 2000 Value Index.

This category consists of a selection of investments based on the Russell 2000 Growth Index.

This category consists of an index fund designed to track the Russell 2000, along with a fund investing in readily marketable securities of U.S. companies with market capitalizations within the smallest 10% of the market universe, or smaller than the 1000th largest US company.

This category has investments in medium to large non-US companies, including high quality, durable growth companies and companies based in countries with stable economic and political systems. A portion of this category consists of an index fund designed to track the MSC ACWI ex-US Net Dividend Return Index.

This category currently includes equal investments in three mutual funds, two of which usually hold at least 80% of fund assets in investment grade fixed income securities, seeking to outperform the Barclays US Aggregate Bond Index while maintaining a similar duration to that index. The third fund targets investments of 50% or more in mortgage-backed securities guaranteed by the US government and its agencies.

This category consists mostly of a fund which seeks to track the Barclays Capital US Corporate A or Better 5-20 Year, Bullets only Index, along with a diversified mutual fund holding fixed income securities rated A or better.

This category consists of a fund that seeks to approximate the performance of the Barclays Capital US Corporate A or Better, 20+ Year Bullets Only Index over the long term.

This category currently invests in three long/short equity hedge funds.

For the fiscal year ending December 31, 2018, the Company expects to contribute approximately $32,000 to the postretirement plan.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid from both retirement plans:

	Pension		Postretirement
(In thousands)	Benefits		Benefits		Total
Years ending December 31:
2018	$	297	$	32	$	329
2019		306		34		340
2020		324		35		359
2021		341		37		378
2022		364		39		403
Years 2023-2027		2,626		140		2,766

The Company also offers a 401(k) plan to its employees. Contributions to this plan by the Company were $333,000 and $300,000 for 2017 and 2016, respectively.In addition, the Company made a $244,000 safe harbor contribution to the plan in 2017.

The Company maintains optional deferred compensation plans for its directors and certain executive officers, whereby fees and income normally received are deferred and paid by the Company based upon a payment schedule commencing at age 65 and continuing monthly for 10 years. Directors must serve on the board for a minimum of 5 years to be eligible for the Plan. At December 31, 2017 and 2016, other liabilities include approximately $2.6 million and $2.4 million, respectively, relating to deferred compensation. Deferred compensation expense for the years ended December 31, 2017 and 2016 amounted to approximately $351,000 and $339,000, respectively.

To assist in the funding of the Company’s benefits under the supplemental executive retirement plan and deferred compensation plans, the Company is the owner of single premium life insurance policies on selected participants. At December 31, 2017 and 2016, the cash surrender values of these policies were $11.7 million and $11.5 million, respectively.

The Bank adopted a Defined Contribution Supplemental Executive Retirement Plan (the “SERP”), effective January 1, 2014. The SERP benefits certain key senior executives of the Bank who are selected by the Board to participate, including our Named Executive Officers. The SERP is intended to provide a benefit from the Bank upon retirement, death, disability or voluntary or involuntary termination of service (other than “for cause”), subject to the requirements of Section 409A of the Internal Revenue Code. Accordingly, the SERP obligates the Bank to make a contribution to each executive’s account on the last business day of each calendar year. In addition, the Bank, may, but is not required to, make additional discretionary contributions to the executive’s accounts from time to time. All executives currently participating in the plan, including the Named Executive Officers, are fully vested in the Bank’s contribution to the plan. In the event the executive is terminated involuntarily or resigns for good reason within 24 months following a change in control, the Bank is required to make additional annual contributions the lesser of: (1) three years or (2) the number of years remaining until the executive’s benefit age, subject to potential reduction to avoid an excess parachute payment under Code Section 280G. In the event of the executive’s death, disability or termination within 24 months after a change in control, the executive’s account will be paid in a lump sum to the executive or his beneficiary, as applicable. In the event the executive is entitled to a benefit from the SERP due to retirement or other termination of employment, the benefit will be paid either in a lump sum or in 10 annual installments as detailed in his or her participant agreement. At December 31, 2017, other liabilities included $631,000 accrued under this plan.

Stock Based Compensation Plans

12 Months Ended

Dec. 31, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

STOCK BASED COMPENSATION PLANS

NOTE 15: Stock Based Compensation PlanS

All share and per share values have been adjusted, where appropriate, by the 1.6472 exchange rate used in the Conversion and Offering that occurred on October 16, 2014.

April 2010 Stock Option Grants

In June 2011, the board of directors of the Company approved the grant of stock option awards to its directors and executive officers under the 2010 Stock Option Plan that had 247,080 shares authorized for award. A total of 74,124 stock option awards were granted to the nine directors of the Company, at that time, and 123,540 stock option awards, in total, were granted to the Chief Executive Officer and the Company’s then four senior vice presidents. The awards will vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or June 2021. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 2.2%; volatility factors of the expected market price of the Company's common stock of 0.45; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.49%. Based upon these assumptions, the weighted average fair value of options granted was $2.29.

In July 2013, the board of directors of the Company approved the grant of 16,472 stock option awards in total to two newly elected directors of the Company. The awards will vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or July 2023. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 2.0%; volatility factors of the expected market price of the Company's common stock of 0.45; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.0%. Based upon these assumptions, the weighted average fair value of options granted was $3.69.

In November 2015, the board of directors of the Company approved the grant of 16,472 stock option awards in total to two newly elected directors of the Company. The awards will vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or November 2025. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 1.9%; volatility factors of the expected market price of the Company's common stock of 0.23; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.4%. Based upon these assumptions, the weighted average fair value of options granted was $2.56.

In April 2016, the board of directors of the Company approved the grant of 47,768 stock option awards in total to three officers and one recently promoted senior officer. The awards will vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or April 2026. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 1.6%; volatility factors of the expected market price of the Company's common stock of 0.32; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.55%. Based upon these assumptions, the weighted average fair value of options granted was $3.17.

May 2016 Stock Option Grants

In May 2016, the board of directors of the Company approved the grant of stock option awards to its directors, executive Officers, senior officers and officers under the 2016 Equity Incentive Plan that was approved at the Annual Meeting of Shareholders on May 4, 2016 when 263,605 shares were authorized for award.

A total of 79,083 stock option awards were granted to the nine directors of the Company and 44,812 stock option awards, in total, were granted to thirteen officers. The awards will vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or May 2026. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 1.6%; volatility factors of the expected market price of the Company's common stock of 0.32; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.55%. Based upon these assumptions, the weighted average fair value of options granted was $3.32.

A total of 92,261 stock option awards were granted to the Chief Executive Officer, two executive officers and three senior officers. The awards will vest ratably over seven years (approximately 14.28% per year for each year of the participant’s service with the Company) with the exception of one senior officer whose awards vested upon retirement on August 1, 2017 and will expire ten years from the date of the grant, or May 2026. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 1.7%; volatility factors of the expected market price of the Company's common stock of 0.32; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.55%. Based upon these assumptions, the weighted average fair value of options granted was $3.59.

Activity in the stock option plans is as follows:

				Weighted
	Options			Average		Shares
(Shares in thousands)	Outstanding			Exercise Price		Exercisable
Outstanding at December 31, 2015		185		$	5.75		128
Granted		264		$	11.25		-
Newly vested		-			6.21		37
Exercised		(26	)		-		(26	)
Expired		-			-		-
Outstanding at December 31, 2016		423		$	6.21		139
Granted		-		$	-		-
Newly vested		-			10.92		57
Exercised		(28	)		-		(28	)
Expired		-			-		-
Outstanding at December 31, 2017		395		$	10.92		168

The aggregate intrinsic value of a stock option represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options prior to the expiration date. The intrinsic value can change based on fluctuations in the market value of the Company’s stock. At December 31, 2017, the intrinsic value of the stock options was $2.3 million. At December 31, 2016, the intrinsic value of the stock options was $1.7 million.

At December 31, 2017, there were 395,177 options outstanding, of which 167,835 were exercisable at an average exercise price of $7.61, and an average remaining contractual life of 5.3 years.

May 2016 Restricted Stock Unit Grants

In May 2016, the board of directors of the Company approved the grant of restricted stock units to its directors, executive officers, senior officers and officers under the 2016 Equity Incentive Plan that was approved at the Annual Meeting of Shareholders on May 4, 2016 when 105,442 shares were authorized for award. A total of 31,635 restricted stock units were granted to the nine directors of the Company and 8,436 restricted stock units, in total, were granted to two officers. The units will vest ratably over five years (20% per year for each year of the participant’s service with the Company).

A total of 46,570 restricted stock units, in total, were granted to the Chief Executive Officer, two executive officers and three senior officers. The units will vest ratably over seven years (approximately 14.28% per year for each year of the participant’s service with the Company) with the exception of one senior officer whose units vested upon retirement on August 1, 2017.

The compensation expense of the stock option awards and restricted stock units is based on the fair value of the instruments on the date of grant. The Company recorded compensation expense in the amount of $345,000 and $264,000 in 2017 and 2016, respectively, and is expected to record $320,000, $313,000, $312,000, $173,000, $110,000 and $37,000 in 2018 through 2023.

Employee Stock Ownership Plan	12 Months Ended
Employee Stock Ownership Plan	Dec. 31, 2017
Employee Stock Ownership Plan [Abstract]
EMPLOYEE STOCK OWNERSHIP PLAN	NOTE 16: EMPLOYEE STOCK OWNERSHIP PLAN The Bank established the Pathfinder Bank Employee Stock Ownership Plan (“Plan”) to purchase stock of the Company for the benefit of its employees. In July 2011, the Plan received a $1.1 million loan from Community Bank, N.A., guaranteed by the Company, to fund the Plan’s purchase of 125,000 shares of the Company’s treasury stock. The loan was being repaid in equal quarterly installments of principal plus interest over ten years beginning October 1, 2011. Interest accrued at the Wall Street Journal Prime Rate plus 1.00%, and was secured by the unallocated shares of the ESOP stock. This loan was refinanced in connection with the Conversion and Offering that occurred on October 16, 2014. In connection with the Conversion and Offering, the ESOP purchased 105,442 shares issued in the offering by obtaining a loan from the Company which was used to purchase both the additional shares and refinance the remaining outstanding balance on the loan from Community Bank N.A. There were 138,982.5 shares associated with the refinanced loan resulting in a total of 244,424.5 shares associated with the new loan provided by the Company. The ESOP loan from the Company has a ten year term and is being repaid in equal payments of principal and interest under a fixed rate of interest equal to 3.25% which was the prime rate of interest on the date of the closing of the offering. This ESOP loan from the Company, also referred to as an internally leveraged ESOP, does not appear as a liability on the Company’s consolidated statement of condition as of December 31, 2017 in accordance with ASC 718-40-25-9d. In accordance with the payment of principal on the loan, a proportionate number of shares are allocated to the employees over the ten year time horizon of the loan. Participants’ vesting interest in the shares of Company stock is at the rate of 20% per year. Compensation expense is recorded based on the number of shares released to the participants times the average market value of the Company’s stock over that same period. Dividends on unallocated shares, recorded as compensation expense on the income statement, are made available to the participants' account. The Company recorded $404,000 and $333,000 in compensation expense in 2017 and 2016, respectively, including $37,000 and $40,000 for dividends on unallocated shares in these same time periods. At December 31, 2017, there were 164,987 unearned ESOP shares with a fair value of $2.5 million.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 17: Income Taxes

The provision for income taxes for the years ended December 31, is as follows:

(In thousands)	2017			2016
Current	$	1,022		$	1,360
Deferred		(100	)		(249	)
	$	922		$	1,111

The provision for income taxes includes the following

(In thousands)	2017		2016
Federal Income Tax	$	741	$	980
State Tax		181		131
	$	922	$	1,111

The components of the net deferred tax asset, included in other assets as of December 31, are as follows:

(In thousands)	2017			2016
Assets:
Deferred compensation	$	847		$	912
Allowance for loan losses		1,862			2,392
Postretirement benefits		126			56
Subordinated loan interest		23			37
Investment securities and financial derivative		551			1,229
Impairment losses on investment securities		-			88
Loan origination fees		108			184
Capital loss carryforward		-			62
Held-to-maturity securities		153			310
Other		212			166
Total		3,882			5,436
Liabilities:
Prepaid pension		(1,173	)		(1,605	)
Depreciation		(968	)		(1,083	)
Accretion		(120	)		(211	)
Intangible assets		(1,004	)		(1,470	)
Mortgage servicing rights		(7	)		(15	)
Prepaid expenses and transaction fees		(79	)		(204	)
Total		(3,351	)		(4,588	)
		531			848
Less: deferred tax asset valuation allowance		-			(150	)
Net deferred tax asset	$	531		$	698

Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income within the carry back period. A valuation allowance is provided when it is more likely than not that some portion, or all of the deferred tax assets, will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income and the projected future level of taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible.

Deferred income tax assets and liabilities are determined using the liability method. Under this method, the net deferred tax asset or liability is recognized for the future tax consequences. This is attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as net operating and capital loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. If current available evidence about the future raises doubt about the likelihood of a deferred tax asset being realized, a valuation allowance is established. The judgment about the level of future taxable income, including that which is considered capital, is inherently subjective and is reviewed on a continual basis as regulatory and business factors change. In prior years, management believed that it may not have been able to generate sufficient future taxable income in the form of capital gains to offset its capital loss carry forward position before those potential tax benefits expired. Accordingly, a valuation allowance of $150,000 was maintained at December 31, 2016. During 2017, the Company recognized net capital gains of $428,000, effectively utilizing all capital loss carryforward tax benefits established in prior years and thereby eliminating the need for any valuation allowance related to the future utilization of those carryforwards at December 31, 2017. As a result, the Company maintained no valuation allowance related to future tax benefits related to the utilization of capital loss carryforwards at December 31, 2017.

A reconciliation of the federal statutory income tax rate to the effective income tax rate for the years ended December 31, is as follows:

	2017				2016
Federal statutory income tax rate		34.0		%		34.0		%
State tax, net of federal benefit		2.9				1.9
Tax-exempt interest income		(11.2	)			(8.6	)
Increase in value of bank owned life insurance less premiums paid		(2.0	)			(2.0	)
Change in valuation allowance		(3.5	)			(2.6	)
Remeasurement of net deferred tax assets for tax rate reduction - Tax Cuts & Jobs Act		(3.5	)			-
Other		4.5				2.5
Effective income tax rate - Pathfinder Bancorp, Inc.		21.2		%		25.2		%
Minority interest		(0.6	)			0.3
Effective income tax rate		20.6		%		25.5		%

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments And Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 18: Commitments and Contingencies

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statement of condition. The contractual amount of those commitments to extend credit reflects the extent of involvement the Company has in this particular class of financial instrument. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of the instrument. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments.

At December 31, 2017 and 2016, the following financial instruments were outstanding whose contract amounts represent credit risk:

	Contract Amount
(In thousands)	2017		2016
Commitments to grant loans	$	58,235	$	46,649
Unfunded commitments under lines of credit		62,879		48,653
Unfunded commitments related to construction loans in progress		3,506		5,918
Standby letters of credit		2,153		1,900

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitment amounts 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 counter party. Collateral held varies but may include residential real estate and income-producing commercial properties. Loan commitments outstanding at December 31, 2017 with fixed interest rates amounted to approximately $11.1 million. Loan commitments, including unused lines of credit and standby letters of credit, outstanding at December 31, 2017 with variable interest rates amounted to approximately $112.2 million. These outstanding loan commitments carry current market rates.

Unfunded commitments under standby letters of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed.

Letters of credit written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Company generally holds collateral and/or personal guarantees supporting these commitments. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees.

The Company leases land and leasehold improvements under agreements that expire in various years with renewal options over the next 30 years. Rental expense, included in building occupancy expense, amounted to $166,000 for 2017 and $149,000 for 2016.

Approximate minimum rental commitments for non-cancelable operating leases are as follows:

Years Ending December 31:
(In thousands)
2018		203
2019		184
2020		170
2021		145
2022		136
Thereafter		301
Total minimum lease payments	$	1,139

Dividends and Restrictions	12 Months Ended
Dividends and Restrictions	Dec. 31, 2017
Disclosure Of Restrictions On Dividends Loans And Advances Disclosure [Abstract]
DIVIDENDS AND RESTRICTIONS	NOTE 19: Dividends and Restrictions The Company's ability to pay dividends to its shareholders is largely dependent on the Bank's ability to pay dividends to the Company. In addition to state law requirements and the capital requirements discussed in Note 20, federal statutes, regulations and policies limit the circumstances under which the Bank may pay dividends. The amount of retained earnings legally available under these regulations approximated $11.6 million as of December 31, 2017. Dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. The Bank made no dividend payments to the Company in the years ended December 31, 2017, December 31, 2016 or December 31, 2015. Capital adequacy is evaluated primarily by the use of ratios which measure capital against total assets, as well as against total assets that are weighted based on defined risk characteristics. The Company’s goal is to maintain a strong capital position, consistent with the risk profile of its banking operations. This strong capital position serves to support growth and expansion activities while at the same time exceeding regulatory standards. At December 31, 2017, the Bank met the regulatory definition of a “well-capitalized” institution, i.e. a leverage capital ratio exceeding 5%, a Tier 1 risk-based capital ratio exceeding 8%, Tier 1 common equity exceeding 6.5%, and a total risk-based capital ratio exceeding 10%. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The buffer is separate from the capital ratios required under the Prompt Corrective Action (“PCA”) standards. In order to avoid these restrictions, the capital conservation buffer effectively increases the minimum the following capital to risk-weighted assets ratios: (1) Core Capital, (2) Total Capital and (3) Common Equity. The capital conservation buffer requirement began being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented at 2.5% on January 1, 2019. At December 31, 2017, the Bank exceeded all current and projected regulatory required minimum capital ratios, including the maximum capital buffer level that will be required on January 1, 2019.

Regulatory Matters

12 Months Ended

Dec. 31, 2017

Regulatory Capital Requirements [Abstract]

REGULATORY MATTERS

NOTE 20: Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined).

As of December 31, 2017, the Bank’s most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well-capitalized”, under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized”, the Bank must maintain total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the tables below. There are no conditions or events since that notification that management believes have changed the Bank’s category.

As noted above, the regulations also impose a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The buffer is separate from the capital ratios required under the Prompt Corrective Action (“PCA”) standards and imposes restrictions on dividend distributions and discretionary bonuses. In order to avoid these restrictions, the capital conservation buffer effectively increases the minimum the following capital to risk-weighted assets ratios: (1) Core Capital, (2) Total Capital and (3) Common Equity. The capital conservation buffer requirement began being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented at 2.5% on January 1, 2019. At December 31, 2017, the Bank exceeded all current and projected regulatory required minimum capital ratios, including the maximum capital buffer level that will be required on January 1, 2019.

The Bank’s actual capital amounts and ratios as of December 31, 2017 and 2016 are presented in the following table.

	Actual					Minimum For Capital Adequacy Purposes					Minimum To Be "Well-Capitalized" Under Prompt Corrective Provisions					Well-Capitalized With Buffer, Fully Phased In 2019
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2017:
Total Core Capital (to Risk-Weighted Assets)	$	78,105		13.97	%	$	44,733		8.00	%	$	55,916		10.00	%	$	58,712		10.50	%
Tier 1 Capital (to Risk-Weighted Assets)	$	71,114		12.72	%	$	33,550		6.00	%	$	44,733		8.00	%	$	47,529		8.50	%
Tier 1 Common Equity (to Risk-Weighted Assets)	$	71,114		12.72	%	$	25,162		4.50	%	$	36,345		6.50	%	$	39,141		7.00	%
Tier 1 Capital (to Assets)	$	71,114		8.16	%	$	34,863		4.00	%	$	43,579		5.00	%	$	43,579		5.00	%
As of December 31, 2016:
Total Core Capital (to Risk-Weighted Assets)	$	72,098		14.79	%	$	38,996		8.00	%	$	48,745		10.00	%	$	51,182		10.50	%
Tier 1 Capital (to Risk-Weighted Assets)	$	66,003		13.54	%	$	29,247		6.00	%	$	38,996		8.00	%	$	41,433		8.50	%
Tier 1 Common Equity (to Risk-Weighted Assets)	$	66,003		13.54	%	$	21,935		4.50	%	$	31,684		6.50	%	$	34,121		7.00	%
Tier 1 Capital (to Assets)	$	66,003		9.06	%	$	29,154		4.00	%	$	36,443		5.00	%	$	36,443		5.00	%

On September 1, 2011, the Company entered into a Securities Purchase Agreement with the Secretary of the Treasury (“Treasury”) pursuant to which the Company sold to the Treasury, 13,000 shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series B (“Series B Preferred Stock”), having a liquidation preference of $1,000 per share for aggregate proceeds of $13.0 million. This transaction was entered into as part of the SBLF.

The Series B Preferred Stock was entitled to receive non-cumulative dividends payable quarterly, on each January 1, April 1, July 1 and October 1, beginning October 1, 2011. The dividend rate, which was calculated on the aggregate liquidation amount, was initially set at 4.2% per annum based upon the level of “Qualified Small Business Lending,” or “QSBL” (as defined in the Securities Purchase Agreement) by Pathfinder Bank. The dividend rate for dividend periods subsequent to the initial period was set based upon the “Percentage Change in Qualified Lending” (as defined in the Securities Purchase Agreement) between each dividend period and the “Baseline” QSBL level. In general, the dividend rate decreased as the level of Pathfinder Bank’s QSBL increased. Our dividend rate as of December 31, 2015 was 1.0%. Such dividends were not cumulative, but we could only declare and pay dividends on our common stock (or any other equity securities junior to the Series B Preferred Stock) if we have declared and paid dividends for the current dividend period on the Series B Preferred Stock. We were also subject to other restrictions on our ability to repurchase or redeem other securities.

The Company had the right to redeem the shares of Series B Preferred Stock, in whole or in part, at any time at a redemption price equal to the sum of the liquidation amount per share and the per-share amount of any unpaid dividends for the then-current period, subject to any required prior approval by its primary federal regulator. On February 16, 2016, the Company redeemed all 13,000 shares of the Series B Preferred Stock outstanding with the payment of $13.0 million to the SBLF. This redemption was substantially financed by the issuance of the $10 million Subordinated Loan on October 15, 2015. The issuance of the Subordinated Loan increased interest expense by $644,000 per year but prospectively reduced the amount payable to the SBLF in preferred stock dividends. Effective April 1, 2016, the annual dividend rate for the preferred stock would have been 9.0%. The retirement of the $13.0 million of the SBLF Preferred Series B stock, therefore resulted in an annual reduction of preferred dividends payable of $1.2 million. The Company paid $0 and $16,000 in preferred dividends in 2017 and 2016, respectively. These transactions had no effect on the regulatory capital position of the Bank.

The Company’s goal is to maintain a strong capital position, consistent with the risk profile of its subsidiary banks that supports growth and expansion activities while at the same time exceeding regulatory standards. At December 31, 2017, the Bank exceeded all regulatory required minimum capital ratios and met the regulatory definition of a “well-capitalized” institution, i.e. a leverage capital ratio exceeding 5%, a Tier 1 risk-based capital ratio exceeding 6% and a total risk-based capital ratio exceeding 10%.

The Bank is required to maintain average balances on hand or with the Federal Reserve Bank. At December 31, 2017 and 2016, these reserve balances amounted to $6.3 million and $13.2 million, respectively and are included in cash and due from banks in the statement of condition.

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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+ Details

Interest Rate Derivative	12 Months Ended
Interest Rate Derivative	Dec. 31, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]
INTEREST RATE DERIVATIVE	NOTE 21: INTEREST RATE DERIVATIVE Derivative instruments are entered into primarily as a risk management tool of the Company. Financial derivatives are recorded at fair value as other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability are recognized currently in earnings. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in other comprehensive income and subsequently reclassified to earnings as the hedged transaction impacts net income. Any ineffective portion of a cash flow hedge is recognized currently in earnings. See Note 22 for further discussion of the fair value of the interest rate derivative. The Company has $5.0 million of floating rate trust preferred debt indexed to 3-month LIBOR. As a result, it is exposed to variability in cash flows related to changes in projected interest payments caused by changes in the benchmark interest rate. During the fourth quarter of fiscal 2009, the Company entered into an interest rate swap agreement, with a $2.0 million notional amount, to convert a portion of the floating rate trust preferred debt to a fixed rate for a term of approximately seven years at a rate of 4.96%. This swap agreement expired in the second quarter of 2016 and was not renewed. The derivative, while in effect, was designated as a cash flow hedge. The hedging strategy ensured that changes in cash flows from the derivative would have been highly effective at offsetting changes in interest expense from the hedged exposure. On five occasions during 2017, the Company sold, and subsequently repurchased, U.S. Treasury securities in the approximate amount of $40.0 million for each transaction. These transactions were intended to act as hedges against rising short-term interest rates. The Company was in controlling possession of, but did not own, the securities at the time of each sale. The securities had been received by the Company, under industry-standard repurchase agreements, from an unrelated third party as collateral for a series of 30-day loans of approximately $40.0 million on each occasion which were made at market rates of interest to that third party. The security sale on each occasion provided the funds necessary to advance the loan to the third party and placed the Company in what is generally described as a “short position” with respect to the sold U.S. Treasury securities. These transactions acted as a hedge against rising short-term interest rates because the price of each sold security would be expected to decline in a rising short-term interest rate environment and could therefore be re-acquired at the conclusion of each 30-day loan period at a price lower than the price at which the securities were originally sold. Short-term generally rates rose over the combined duration of these transactions and, consequently, the Company recognized aggregate gains on the sale and repurchase of the securities in the amounts of $428,000 in 2017. The transactions’ gains were characterized as capital gains for tax purposes. On one occasion during 2016, the Company sold, and subsequently repurchased, a U.S. Treasury securities in the approximate amount of $25.0 million. This transaction was intended to act as a hedge against rising short-term interest rates. The security was received by the Company, under an industry-standard repurchase agreement, from an unrelated third party as collateral for a 30-day loan of approximately $25.0 million which was made at zero interest to that third party. Short-term rates rose over the duration of this transaction and, consequently, the Company recognized a gain on the sale and repurchase of the security in the amounts of $85,000 and a related tax benefit of $34,000 in 2016. All hedging transactions were closed at December 31, 2017 and 2016 and had no effect on the Company’s consolidated financial position on those dates with the exception of deferred fees for consulting services related to the transactions in the amount of $53,000 at December 31, 2016. These deferred fees were recognized in other assets at December 31, 2016 and as a component of interest expense in 2017.

Fair Value Measurements and Disclosures

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS AND DISCLOSURES

NOTE 22: Fair Value MEASUREMENTS AND DISCLOSURES

Accounting guidance related to fair value measurements and disclosures specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value hierarchy:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable.

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs, minimize the use of unobservable inputs, to the extent possible, and considers counterparty credit risk in its assessment of fair value.

The Company used the following methods and significant assumptions to estimate fair value:

Investment securities: The fair values of securities available-for-sale are obtained from an independent third party and are based on quoted prices on nationally recognized securities exchanges where available (Level 1). If quoted prices are not available, fair values are measured by utilizing matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Management made no adjustment to the fair value quotes that were received from the independent third party pricing service. Level 3 securities are assets whose fair value cannot be determined by using observable measures, such as market prices or pricing models. Level 3 assets are typically very illiquid, and fair values can only be calculated using estimates or risk-adjusted value ranges. Management applies known factors, such as currently applicable discount rates, to the valuation of those investments in order to determine fair value at the reporting date.

Interest rate swap derivative: The fair value of the interest rate swap derivative is obtained from a third party pricing agent and is calculated based on a discounted cash flow model. All future floating cash flows are projected and both floating and fixed cash flows are discounted to the valuation date. The curve utilized for discounting and projecting is built by obtaining publicly available third party market quotes for various swap maturity terms, and therefore is classified within Level 2 of the fair value hierarchy. The swap agreement presented in the accompanying financial statements expired in the second quarter of 2016 and was not renewed.

Impaired loans: Impaired loans are those loans in which the Company has measured impairment based on the fair value of the loan’s collateral or the discounted value of expected future cash flows. Fair value is generally determined based upon market value evaluations by third parties of the properties and/or estimates by management of working capital collateral or discounted cash flows based upon expected proceeds. These appraisals may include up to three approaches to value: the sales comparison approach, the income approach (for income-producing property), and the cost approach. Management modifies the appraised values, if needed, to take into account recent developments in the market or other factors, such as, changes in absorption rates or market conditions from the time of valuation and anticipated sales values considering management’s plans for disposition. Such modifications to the appraised values could result in lower valuations of such collateral. Estimated costs to sell are based on current amounts of disposal costs for similar assets. These measurements are classified as Level 3 within the valuation hierarchy. Impaired loans are subject to nonrecurring fair value adjustment upon initial recognition or subsequent impairment. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance.

Foreclosed real estate: Fair values for foreclosed real estate are initially recorded based on market value evaluations by third parties, less costs to sell (“initial cost basis”). Any write-downs required when the related loan receivable is exchanged for the underlying real estate collateral at the time of transfer to foreclosed real estate are charged to the allowance for loan losses. Values are derived from appraisals, similar to impaired loans, of underlying collateral or discounted cash flow analysis. Subsequent to foreclosure, valuations are updated periodically and assets are marked to current fair value, not to exceed the initial cost basis. In the determination of fair value subsequent to foreclosure, management also considers other factors or recent developments, such as, changes in absorption rates and market conditions from the time of valuation and anticipated sales values considering management’s plans for disposition. Either change could result in adjustment to lower the property value estimates indicated in the appraisals. These measurements are classified as Level 3 within the fair value hierarchy.

The following tables summarize assets measured at fair value on a recurring basis as of December 31, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value:

	December 31, 2017
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	-	$	41,336	$	-	$	41,336
State and political subdivisions		-		13,681		-		13,681
Corporate		-		8,600		-		8,600
Asset backed securities		-		6,644		-		6,644
Residential mortgage-backed - US agency		-		35,742		-		35,742
Collateralized mortgage obligations - US agency		-		53,348		-		53,348
Collateralized mortgage obligations - Private label		-		11,052		-		11,052
Equity investment securities:
Common stock - Financial services industry		-		220		515		735
Total available-for-sale securities	$	-	$	170,623	$	515	$	171,138

	December 31, 2016
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	-	$	24,184	$	-	$	24,184
State and political subdivisions		-		16,481		-		16,481
Corporate		-		15,195		-		15,195
Asset backed securities		-		6,664		-		6,664
Residential mortgage-backed - US agency		-		30,566		-		30,566
Collateralized mortgage obligations - US agency		-		40,986		-		40,986
Collateralized mortgage obligations - Private label		-		6,577		-		6,577
Equity investment securities:
Mutual funds:
Ultra short mortgage fund		626		-		-		626
Common stock - Financial services industry		-		220		456		676
Total available-for-sale securities	$	626	$	140,873	$	456	$	141,955

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis as of December 31 were as follows:

(In thousands)	Common Stock - Financial Services Industry
Balance - December 31, 2016	$	456
Total gains realized/unrealized:
Included in earnings		-
Included in other comprehensive income		59
Settlements		-
Sales		-
Balance - December 31, 2017	$	515
Changes in unrealized gains included in earnings related to assets still held at December 31, 2017		-

The following table summarizes the valuation techniques and significant unobservable inputs used for the Company's investments that are categorized within Level 3 of the fair value hierarchy at the indicated dates:

(In thousands)

At December 31, 2017

Investment Type

Fair Value

Valuation Techniques

Unobservable Input

Weight

Common Stock - Financial

Services Industry

515

Inputs to comparables

Weight ascribed to comparable companies

100%

(In thousands)

At December 31, 2016

Investment Type

Fair Value

Valuation Techniques

Unobservable Input

Weight

Common Stock - Financial

Services Industry

456

Inputs to comparables

Weight ascribed to comparable companies

100%

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

The following tables summarize assets measured at fair value on a nonrecurring basis as of December 31, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value:

	December 31, 2017
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Impaired loans	$	-	$	-	$	4,887	$	4,887
Foreclosed real estate	$	-	$	-	$	434	$	434

	December 31, 2016
							Total Fair
(In thousands)	Level 1		Level 2		Level 3		Value
Impaired loans	$	-	$	-	$	4,049	$	4,049
Foreclosed real estate	$	-	$	-	$	393	$	393

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Level 3 inputs were used to determine fair value.

		Quantitative Information about Level 3 Fair Value Measurements
	Valuation	Unobservable	Range
	Techniques	Input	(Weighted Avg.)
At December 31, 2017
Impaired loans	Appraisal of collateral	Appraisal Adjustments	5% - 30% (9%)
	(Sales Approach)	Costs to Sell	7% - 13% (11%)
	Discounted Cash Flow

Foreclosed real estate	Appraisal of collateral	Appraisal Adjustments	15% - 15% (15%)
	(Sales Approach)	Costs to Sell	6% - 8% (7%)

		Quantitative Information about Level 3 Fair Value Measurements
	Valuation	Unobservable	Range
	Techniques	Input	(Weighted Avg.)
At December 31, 2016
Impaired loans	Appraisal of collateral	Appraisal Adjustments	5% - 10% (5%)
	(Sales Approach)	Costs to Sell	8% - 13% (10%)
	Discounted Cash Flow

Foreclosed real estate	Appraisal of collateral	Appraisal Adjustments	15% - 15% (15%)
	(Sales Approach)	Costs to Sell	6% - 8% (7%)

Required disclosures include fair value information of financial instruments, whether or not recognized in the consolidated statement of condition, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.

The Company has various processes and controls in place to ensure that fair value is reasonably estimated. The Company performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process.

While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period-ends, and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end.

The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The Company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions:

Cash and cash equivalents – The carrying amounts of these assets approximate their fair value and are classified as Level 1.

Interest earning time deposits – The carrying amounts of these assets approximate their fair value and are classified as Level 1.

Investment securities – The fair values of securities available-for-sale and held-to-maturity are obtained from an independent third party and are based on quoted prices on nationally recognized exchange where available (Level 1). If quoted prices are not available, fair values are measured by utilizing matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Management made no adjustment to the fair value quotes that were received from the independent third party pricing service. Level 3 securities are assets whose fair value cannot be determined by using observable measures, such as market prices or pricing models. Level 3 assets are typically very illiquid, and fair values can only be calculated using estimates or risk-adjusted value ranges. Management applies known factors, such as currently applicable discount rates, to the valuation of those investments in order to determine fair value at the reporting date.

Federal Home Loan Bank stock – The carrying amount of these assets approximates their fair value and are classified as Level 2.

Net loans – For variable-rate loans that re-price frequently, fair value is based on carrying amounts. The fair value of other loans (for example, fixed-rate commercial real estate loans, mortgage loans, and commercial and industrial loans) is estimated using discounted cash flow analysis, based on interest rates currently being offered in the market for loans with similar terms to borrowers of similar credit quality. Loan value estimates include judgments based on expected prepayment rates. The measurement of the fair value of loans, including impaired loans, is classified within Level 3 of the fair value hierarchy.

Accrued interest receivable and payable – The carrying amount of these assets approximates their fair value and are classified as Level 1.

Deposits – The fair values disclosed for demand deposits (e.g., interest-bearing and noninterest-bearing checking, passbook savings and certain types of money management accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts) and are classified within Level 1 of the fair value hierarchy. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates of deposits to a schedule of aggregated expected monthly maturities on time deposits. Measurements of the fair value of time deposits are classified within Level 2 of the fair value hierarchy.

Borrowings – Fixed/variable term “bullet” structures are valued using a replacement cost of funds approach. These borrowings are discounted to the FHLBNY advance curve. Option structured borrowings’ fair values are determined by the FHLB for borrowings that include a call or conversion option. If market pricing is not available from this source, current market indications from the FHLBNY are obtained and the borrowings are discounted to the FHLBNY advance curve less an appropriate spread to adjust for the option. These measurements are classified as Level 2 within the fair value hierarchy.

Subordinated Loans – The Company secures quotes from its pricing service based on a discounted cash flow methodology or utilizes observations of recent highly-similar transactions which result in a Level 2 classification.

Interest rate swap derivative – The fair value of the interest rate swap derivative is obtained from a third party pricing agent and is calculated based on a discounted cash flow model. All future floating cash flows are projected and both floating and fixed cash flows are discounted to the valuation date. The curve utilized for discounting and projecting is built by obtaining publicly available third party market quotes for various swap maturity terms, and therefore is classified within Level 2 of the fair value hierarchy. The swap agreement presented in the accompanying financial statements expired in the second quarter of 2016 and was not renewed.

The carrying amounts and fair values of the Company’s financial instruments as of December 31 are presented in the following table:

			December 31, 2017				December 31, 2016
	Fair Value		Carrying		Estimated		Carrying		Estimated
(In thousands)	Hierarchy		Amounts		Fair Values		Amounts		Fair Values
Financial assets:
Cash and cash equivalents		1	$	21,991	$	21,991	$	22,419	$	22,419
Investment securities - available-for-sale		1		-		-		626		626
Investment securities - available-for-sale		2		170,623		170,623		140,873		140,873
Investment securities - available-for-sale		3		515		515		456		456
Investment securities - held-to-maturity		2		66,196		66,426		54,645		54,429
Federal Home Loan Bank stock		2		3,855		3,855		3,250		3,250
Net loans		3		573,705		570,439		485,900		484,704
Accrued interest receivable		1		3,047		3,047		2,532		2,532

Financial liabilities:
Demand Deposits, Savings, NOW and MMDA		1	$	510,176	$	510,176	$	421,627	$	421,627
Time Deposits		2		213,427		212,453		189,356		189,197
Borrowings		2		73,888		73,575		58,947		58,918
Subordinated loans		2		15,059		14,953		15,025		14,310
Accrued interest payable		1		186		186		75		75

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Parent Company - Financial Information

12 Months Ended

Dec. 31, 2017

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

PARENT COMPANY – FINANCIAL INFORMATION

NOTE 23: Parent Company – Financial Information

The following represents the condensed financial information of Pathfinder Bancorp, Inc. as of and for the years ended December 31:

Statements of Condition	2017		2016
(In thousands)
Assets
Cash	$	5,004	$	5,424
Investments		515		455
Investment in bank subsidiary		71,883		67,281
Investment in non-bank subsidiary		155		155
Other assets		117		475
Total assets	$	77,674	$	73,790
Liabilities and Shareholders' Equity
Accrued liabilities	$	471	$	404
Subordinated loans		15,059		15,025
Shareholders' equity		62,144		58,361
Total liabilities and shareholders' equity	$	77,674	$	73,790

Statements of Income	2017			2016
(In thousands)
Income
Dividends from non-bank subsidiary	$	4		$	4
Realized gains on available-for sale investment securities		428			108
Operating, net		15			-
Total income		447			112
Expenses
Interest		1,371			880
Operating, net		169			230
Total expenses		1,540			1,110
Loss before taxes and equity in undistributed net income of subsidiaries		(1,093	)		(998	)
Tax benefit		262			254
Loss before equity in undistributed net income of subsidiaries		(831	)		(744	)
Equity in undistributed net income of subsidiaries		4,322			4,016
Net income	$	3,491		$	3,272

Statements of Cash Flows	2017			2016
(In thousands)
Operating Activities
Net Income	$	3,491		$	3,272
Equity in undistributed net income of subsidiaries		(4,322	)		(4,016	)
Realized gains on available-for-sale investment securities		-			(23	)
Stock based compensation and ESOP expense		712			557
Amortization of deferred financing from subordinated loan		34			34
Net change in other assets and liabilities		822			(152	)
Net cash flows from operating activities		737			(328	)
Investing Activities
Purchase investments		-			(130	)
Net gain on hedging transaction		(428	)		(85	)
Proceeds from sale of investment		-			43
Net cash flows from investing activities		(428	)		(172	)
Financing activities
Redemption of preferred stock - SBLF		-			(13,000	)
Proceeds from exercise of stock options		155			143
Purchase of common stock		-			(1,755	)
Cash dividends paid to preferred shareholders		-			(16	)
Cash dividends paid to common shareholders		(884	)		(866	)
Net cash flows from financing activities		(729	)		(15,494	)
Change in cash and cash equivalents		(420	)		(15,994	)
Cash and cash equivalents at beginning of year		5,424			21,418
Cash and cash equivalents at end of year	$	5,004		$	5,424

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Related Party Transactions

12 Months Ended

Dec. 31, 2017

RELATED PARTY TRANSACTIONS

NOTE 24: RELATED PARTY TRANSACTIONS

In the ordinary course of business, the Company has granted loans to certain directors, executive officers and their affiliates (collectively referred to as “related parties”). These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated parties and do not involve more than normal risk of collectability.

The following represents the activity associated with loans to related parties during the year ended December 31, 2017:

(In thousands)
Balance at the beginning of the year	$	10,884
Originations and Officer additions		2,287
Principal payments		(3,899	)
Balance at the end of the year	$	9,272

Deposits of related parties at December 31, 2017 and December 31, 2016 were $3.2 million and $3.4 million, respectively.

Conversion and Reorganization	12 Months Ended
Conversion and Reorganization	Dec. 31, 2017
Conversion And Reorganization [Abstract]
CONVERSION AND REORGANIZATION	NOTE 25: CONVERSION AND REORGANIZATION On October 16, 2014, the former Pathfinder Bancorp (“former Pathfinder”) completed the conversion and reorganization pursuant to which Pathfinder Bancorp, MHC converted to the stock holding company form of organization under a “second step” conversion (the “Conversion”), and the Bank reorganized from the two-tier mutual holding company structure to the stock holding company structure. Prior to the completion of the Conversion, the MHC owned approximately 60.4% of the common stock of the Company. The Company, the new stock holding company for Pathfinder Bank, sold 2,636,053 shares of common stock at $10.00 per share, for gross offering proceeds of $26.4 million in its stock offering. In addition, $197,000 in cash was received by the Company from the MHC upon it ceasing to exist. Concurrent with the completion of the offering, shares of common stock of the Company owned by the public were exchanged for shares of the Company’s common stock so that the shareholders now own approximately the same percentage of the Company’s common stock as they owned of the former Pathfinder’s common stock immediately prior to the Conversion. Shareholders of the former Pathfinder received 1.6472 shares of the Company’s common stock for each share of the former Pathfinder’s common stock that they owned immediately prior to completion of the transaction. As a result of the offering and the exchange of shares, the Company had 4,353,850 shares outstanding at December 31, 2014. The Company has 4,236,744 and 4,280,227 shares outstanding at December 31, 2016 and December 31, 2017, respectively. The Conversion was accounted for as a change in corporate form with no resulting change in the historical basis of the Company’s assets, liabilities, and equity. Costs related to the offering were primarily marketing fees paid to the Company’s investment banking firm, legal and professional fees, registration fees, printing and mailing costs and totaled $1.5 million. Accordingly, net proceeds were $24.9 million. In addition, as part of the Conversion and dissolution of the MHC, the Company received $197,000 of cash previously held by the MHC. As a result of the Conversion and Offering, Pathfinder Bancorp, Inc., a federal corporation, was succeeded by a new fully public Maryland corporation with the same name and the MHC ceased to exist. The shares of common stock sold in the offering and issued began trading on the NASDAQ Capital Market on October 17, 2014 under the trading symbol “PBHC.” In accordance with Board of Governors of the Federal Reserve System regulations, at the time of the reorganization, the Company substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible account holders who continue to maintain their accounts at the Bank after conversion. The Bank will establish a parallel liquidation account to support the Company’s liquidation account in the event the Company does not have sufficient assets to fund its obligations under its liquidation account. The liquidation accounts will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation accounts. In the event of a complete liquidation of the Bank or the Company, each account holder will be entitled to receive a distribution in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2017

Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 26: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in the components of accumulated other comprehensive income (loss) (“AOCI”), net of tax, for the periods indicated are summarized in the table below.

	For the years ended December 31, 2017
(In thousands)	Retirement Plans			Unrealized Gains and Losses on Financial Derivative		Unrealized Gains and Losses on Available-for- Sale Securities			Unrealized Loss on Securities Transferred to Held-to- Maturity			Total
Beginning balance	$	(1,513	)	$	-	$	(1,845	)	$	(464	)	$	(3,822	)
Other comprehensive income before reclassifications		(379	)		-		872			115			608
Amounts reclassified from AOCI		89			-		(293	)		-			(204	)
Reclassification of effect of tax rate change⁽¹⁾		(417	)		-		(292	)		(81	)		(790	)
Ending balance	$	(2,220	)	$	-	$	(1,558	)	$	(430	)	$	(4,208	)

(1)	Reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the newly enacted Federal corporate income tax rate reduction from 34% to 21%.

	For the years ended December 31, 2016
(In thousands)	Retirement Plans			Unrealized Gains and Losses on Financial Derivative			Unrealized Gains and Losses on Available-for- Sale Securities			Unrealized Loss on Securities Transferred to Held-to- Maturity			Total
Beginning balance	$	(1,844	)	$	(16	)	$	(51	)	$	(654	)		(2,565	)
Other comprehensive income before reclassifications		198			1			(1,436	)		190			(1,047	)
Amounts reclassified from AOCI		133			15			(358	)		-			(210	)
Ending balance	$	(1,513	)	$	-		$	(1,845	)	$	(464	)	$	(3,822	)

The following table presents the amounts reclassified out of each component of AOCI for the indicated annual period:

(In thousands)	For the years ended
Details about AOCI¹ components	December 31, 2017			December 31, 2016			Affected Line Item in the Statement of Income

Unrealized holding gain on financial derivative:
Reclassification adjustment for interest expense included in net income	$	-		$	(25	)	Interest on long term borrowings
		-			10		Provision for income taxes
	$	-		$	(15	)	Net Income
Retirement plan items
Retirement plan net losses recognized in plan expenses²	$	(150	)	$	(222	)	Salaries and employee benefits
		61			89		Provision for income taxes
	$	(89	)	$	(133	)	Net Income

Available-for-sale securities
Realized gain on sale of securities	$	489		$	594		Net gains on sales and redemptions of investment securities
		(196	)		(236	)	Provision for income taxes
	$	293		$	358		Net Income

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Nature of Operations

Use of Estimates in the Preparation of Consolidated Financial Statements

Significant Group Concentrations of Credit Risk

Advertising

The Company follows the policy of charging the costs of advertising to expense as incurred.

Noncontrolling Interest

Noncontrolling interest represents the portion of ownership and profit or loss that is attributable to the minority owners of the FitzGibbons Agency.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits (with original maturity of three months or less).

Investment Securities

Note 4 to the consolidated financial statements includes additional information about the Company’s accounting policies with respect to the impairment of investment securities.

Federal Home Loan Bank Stock

Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. The stock is carried at cost.

Transfers of Financial Assets

Loans

Allowance for Loan Losses

Income Recognition on Impaired and Nonaccrual Loans

Off-Balance Sheet Credit Related Financial Instruments

Premises and Equipment

Foreclosed Real Estate

Goodwill and Intangible Assets

Mortgage Servicing Rights

Stock-Based Compensation

Retirement Benefits

Derivative Financial Instruments

The hedge positions were closed on December 31, 2017 and 2016.

Income Taxes

Earning Per Share

Earnings Per Share

Segment Reporting

Comprehensive Income (Loss)

Accumulated other comprehensive loss represents the sum of these items, with the exception of net income, as of the balance sheet date and is represented in the table below.

	As of December 31,
Accumulated Other Comprehensive Loss By Component:	2017			2016
Unrealized loss for pension and other postretirement obligations	$	(3,003	)	$	(2,520	)
Tax effect		783			1,007
Net unrealized loss for pension and other postretirement obligations		(2,220	)		(1,513	)
Unrealized loss on available-for-sale securities		(2,108	)		(3,072	)
Tax effect		550			1,227
Net unrealized loss on available-for-sale securities		(1,558	)		(1,845	)
Unrealized loss on securities transferred to held-to-maturity		(585	)		(774	)
Tax effect		155			310
Net unrealized loss on securities transferred to held-to-maturity		(430	)		(464	)
Accumulated other comprehensive loss	$	(4,208	)	$	(3,822	)

Reclassifications

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss represents the sum of these items, with the exception of net income, as of the balance sheet date and is represented in the table below.

	As of December 31,
Accumulated Other Comprehensive Loss By Component:	2017			2016
Unrealized loss for pension and other postretirement obligations	$	(3,003	)	$	(2,520	)
Tax effect		783			1,007
Net unrealized loss for pension and other postretirement obligations		(2,220	)		(1,513	)
Unrealized loss on available-for-sale securities		(2,108	)		(3,072	)
Tax effect		550			1,227
Net unrealized loss on available-for-sale securities		(1,558	)		(1,845	)
Unrealized loss on securities transferred to held-to-maturity		(585	)		(774	)
Tax effect		155			310
Net unrealized loss on securities transferred to held-to-maturity		(430	)		(464	)
Accumulated other comprehensive loss	$	(4,208	)	$	(3,822	)

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Calculations of Basic and Diluted Earnings per Share

The following table sets forth the calculation of basic and diluted earnings per share.

	Years ended
	December 31,
(In thousands, except per share data)	2017		2016
Basic Earnings Per Common Share
Net income available to common shareholders	$	3,491	$	3,256
Weighted average common shares outstanding		4,081		4,105
Basic earnings per common share	$	0.86	$	0.79
Diluted Earnings Per Common Share
Net income available to common shareholders	$	3,491	$	3,256
Weighted average common shares outstanding		4,081		4,105
Effect of assumed exercise of stock options		108		85
Diluted weighted average common shares outstanding		4,189		4,190
Diluted earnings per common share	$	0.83	$	0.78

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2017

Investments Debt And Equity Securities [Abstract]

Amortized Cost and Estimated Fair Value of Investment Securities

The amortized cost and estimated fair value of investment securities are summarized as follows:

	December 31, 2017
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	41,489	$	1	$	(154	)	$	41,336
State and political subdivisions		13,960		12		(291	)		13,681
Corporate		8,584		108		(92	)		8,600
Asset backed securities		6,662		12		(30	)		6,644
Residential mortgage-backed - US agency		36,214		23		(495	)		35,742
Collateralized mortgage obligations - US agency		54,481		-		(1,133	)		53,348
Collateralized mortgage obligations - Private label		11,193		62		(203	)		11,052
Total		172,583		218		(2,398	)		170,403
Equity investment securities:
Common stock - financial services industry		663		72		-			735
Total		663		72		-			735
Total available-for-sale	$	173,246	$	290	$	(2,398	)	$	171,138

Held-to-Maturity Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	4,948	$	14	$	(14	)	$	4,948
State and political subdivisions		35,130		641		(311	)		35,460
Corporate		8,311		151		(159	)		8,303
Residential mortgage-backed - US agency		6,853		53		(10	)		6,896
Collateralized mortgage obligations - US agency		7,574		83		(215	)		7,442
Collateralized mortgage obligations - Private label		3,380		7		(10	)		3,377
Total held-to-maturity	$	66,196	$	949	$	(719	)	$	66,426

	December 31, 2016
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Available-for-Sale Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	24,263	$	1	$	(80	)	$	24,184
State and political subdivisions		17,185		33		(737	)		16,481
Corporate		15,560		20		(385	)		15,195
Asset backed securities		6,696		5		(37	)		6,664
Residential mortgage-backed - US agency		31,204		-		(638	)		30,566
Collateralized mortgage obligations - US agency		42,124		45		(1,183	)		40,986
Collateralized mortgage obligations - Private label		6,682		-		(105	)		6,577
Total		143,714		104		(3,165	)		140,653
Equity investment securities:
Mutual funds:
Ultra short mortgage fund		643		-		(17	)		626
Common stock - financial services industry		663		13		-			676
Total		1,306		13		(17	)		1,302
Total available-for-sale	$	145,020	$	117	$	(3,182	)	$	141,955
Held-to-Maturity Portfolio
Debt investment securities:
US Treasury, agencies and GSEs	$	4,928	$	30	$	(18	)	$	4,940
State and political subdivisions		30,697		572		(693	)		30,576
Corporate		8,240		85		(228	)		8,097
Residential mortgage-backed - US agency		6,386		31		(20	)		6,397
Collateralized mortgage obligations - US agency		2,927		96		-			3,023
Collateralized mortgage obligations - Private label		1,467		-		(71	)		1,396
Total held-to-maturity	$	54,645	$	814	$	(1,030	)	$	54,429

Amortized Cost and Estimated Fair Value of Debt Investments by Contractual Maturity

	Available-for-Sale				Held-to-Maturity
	Amortized		Estimated		Amortized		Estimated
(In thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	21,555	$	21,506	$	1,680	$	1,680
Due after one year through five years		28,957		28,830		11,381		11,488
Due after five years through ten years		11,587		11,642		16,993		17,479
Due after ten years		8,596		8,283		18,335		18,064
Sub-total		70,695		70,261		48,389		48,711
Residential mortgage-backed - US agency		36,214		35,742		6,853		6,896
Collateralized mortgage obligations - US agency		54,481		53,348		7,574		7,442
Collateralized mortgage obligations - Private label		11,193		11,052		3,380		3,377
Totals	$	172,583	$	170,403	$	66,196	$	66,426

Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category and Length of Time that Individual Securities Have Continuous Unrealized Loss Position

	December 31, 2017
	Less than Twelve Months							Twelve Months or More							Total
	Number of							Number of							Number of
	Individual		Unrealized			Fair		Individual		Unrealized			Fair		Individual		Unrealized			Fair
(Dollars in thousands)	Securities		Losses			Value		Securities		Losses			Value		Securities		Losses			Value
Available-for-Sale Portfolio
US Treasury, agencies and GSE's		5	$	(105	)	$	27,359		4	$	(49	)	$	13,957		9	$	(154	)	$	41,316
State and political subdivisions		18		(24	)		2,480		12		(267	)		5,041		30		(291	)		7,521
Corporate		2		(19	)		1,791		1		(73	)		1,727		3		(92	)		3,518
Asset backed securities		2		(17	)		3,123		1		(13	)		742		3		(30	)		3,865
Residential mortgage-backed - US agency		15		(159	)		21,551		9		(336	)		10,463		24		(495	)		32,014
Collateralized mortgage obligations - US agency		14		(195	)		23,790		21		(938	)		25,395		35		(1,133	)		49,185
Collateralized mortgage obligations - Private label		4		(203	)		7,439		-		-			-		4		(203	)		7,439
Totals		60	$	(722	)	$	87,533		48	$	(1,676	)	$	57,325		108	$	(2,398	)	$	144,858
Held-to-Maturity Portfolio
US Treasury, agencies and GSE's		2	$	(2	)	$	1,990		1	$	(12	)	$	988		3	$	(14	)	$	2,978
State and political subdivisions		8		(55	)		5,668		11		(256	)		8,644		19		(311	)		14,312
Corporate		3		(10	)		1,412		1		(149	)		2,087		4		(159	)		3,499
Residential mortgage-backed - US agency		2		(10	)		1,909		-		-			-		2		(10	)		1,909
Collateralized mortgage obligations - US agency		2		(215	)		4,418		-		-			-		2		(215	)		4,418
Collateralized mortgage obligations - Private label		1		(10	)		1,119		-		-			-		1		(10	)		1,119
Totals		18	$	(302	)	$	16,516		13	$	(417	)	$	11,719		31	$	(719	)	$	28,235

	December 31, 2016
	Less than Twelve Months							Twelve Months or More							Total
	Number of							Number of							Number of
	Individual		Unrealized			Fair		Individual		Unrealized			Fair		Individual		Unrealized			Fair
(Dollars in thousands)	Securities		Losses			Value		Securities		Losses			Value		Securities		Losses			Value
Available-for-Sale Portfolio
US Treasury, agencies and GSE's		6	$	(80	)	$	22,161		-	$	-		$	-		6	$	(80	)	$	22,161
State and political subdivisions		53		(737	)		14,057		-		-			-		53		(737	)		14,057
Corporate		10		(385	)		10,587		-		-			-		10		(385	)		10,587
Asset backed securities		3		(37	)		4,455		-		-			-		3		(37	)		4,455
Equity and other investments		1		(17	)		626		-		-			-		1		(17	)		626
Residential mortgage-backed - US agency		23		(638	)		29,849		-		-			-		23		(638	)		29,849
Collateralized mortgage obligations - US agency		28		(1,087	)		33,376		4		(96	)		2,514		32		(1,183	)		35,890
Collateralized mortgage obligations - Private label		5		(105	)		6,577		-		-			-		5		(105	)		6,577
Totals		129	$	(3,086	)	$	121,688		4	$	(96	)	$	2,514		133	$	(3,182	)	$	124,202
Held-to-Maturity Portfolio
US Treasury, agencies and GSE's		1	$	(18	)	$	982		-	$	-		$	-		1	$	(18	)	$	982
State and political subdivisions		16		(693	)		10,038		-		-			-		16		(693	)		10,038
Corporate		5		(228	)		4,402		-		-			-		5		(228	)		4,402
Residential mortgage-backed - US agency		3		(20	)		1,869		-		-			-		3		(20	)		1,869
Collateralized mortgage obligations - Private label		1		(71	)		1,396		-		-			-		1		(71	)		1,396
Totals		26	$	(1,030	)	$	18,687		-	$	-		$	-		26	$	(1,030	)	$	18,687

Gross Realized Gains (Losses) on Sale of Securities

Proceeds of $67.6 million and $33.2 million, respectively on sales and redemptions of securities for the years ended December 31 resulted in gross realized gains (losses) detailed below:

(In thousands)	2017			2016
Realized gains on investments	$	427		$	526
Realized gains on hedging activity		428			85
Realized losses on investments		(366	)		(17	)
	$	489		$	594

Loans (Tables)

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Major Classification of Loans

Major classifications of loans are as follows:

	December 31,			December 31,
(In thousands)	2017			2016
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	216,793		$	199,000
Construction		5,558			8,505
Total residential mortgage loans		222,351			207,505

Commercial loans:
Real estate		192,525			150,698
Lines of credit		51,131			50,477
Other commercial and industrial		50,251			40,394
Tax exempt loans		10,405			12,523
Total commercial loans		304,312			254,092

Consumer loans:
Home equity and junior liens		25,935			24,722
Other consumer		28,646			6,293
Total consumer loans		54,581			31,015
Total loans		581,244			492,612
Net deferred loan fees		(413	)		(465	)
Less allowance for loan losses		(7,126	)		(6,247	)
Loans receivable, net	$	573,705		$	485,900

Summary of Classes of Loan Portfolio

	As of December 31, 2017
			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	211,825	$	891	$	1,869	$	2,208	$	216,793
Construction		5,558				-		-		5,558
Total residential mortgage loans		217,383		891		1,869		2,208		222,351
Commercial loans:
Real estate		187,073		1,372		2,024		2,056		192,525
Lines of credit		50,353		195		523		60		51,131
Other commercial and industrial		48,892		407		532		420		50,251
Tax exempt loans		10,405		-		-		-		10,405
Total commercial loans		296,723		1,974		3,079		2,536		304,312
Consumer loans:
Home equity and junior liens		25,396		61		304		174		25,935
Other consumer		28,584		55		7		-		28,646
Total consumer loans		53,980		116		311		174		54,581
Total loans	$	568,086	$	2,981	$	5,259	$	4,918	$	581,244

	As of December 31, 2016
			Special
(In thousands)	Pass		Mention		Substandard		Doubtful		Total
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	194,377	$	1,445	$	2,115	$	1,063	$	199,000
Construction		8,505		-		-		-		8,505
Total residential mortgage loans		202,882		1,445		2,115		1,063		207,505
Commercial loans:
Real estate		143,126		3,714		3,858		-		150,698
Lines of credit		49,393		684		400		-		50,477
Other commercial and industrial		39,027		661		702		4		40,394
Tax exempt loans		12,523		-		-		-		12,523
Total commercial loans		244,069		5,059		4,960		4		254,092
Consumer loans:
Home equity and junior liens		23,963		170		389		200		24,722
Other consumer		6,224		17		8		44		6,293
Total consumer loans		30,187		187		397		244		31,015
Total loans	$	477,138	$	6,691	$	7,472	$	1,311	$	492,612

Age Analysis of Past Due Loans Segregated by Class of loans

An age analysis of past due loans, exclusive of deferred costs, segregated by class of loans were as follows:

	As of December 31, 2017
	30-59 Days		60-89 Days		90 Days
	Past Due		Past Due		and		Total				Total Loans
(In thousands)	and Accruing		and Accruing		Over		Past Due		Current		Receivable
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	1,196	$	925	$	2,088	$	4,209	$	212,584	$	216,793
Construction		-		-		-		-		5,558		5,558
Total residential mortgage loans		1,196		925		2,088		4,209		218,142		222,351
Commercial loans:
Real estate		720		2,056		1,545		4,321		188,204		192,525
Lines of credit		1,482		31		132		1,645		49,486		51,131
Other commercial and industrial		575		60		766		1,401		48,850		50,251
Tax exempt loans		-		-		-		-		10,405		10,405
Total commercial loans		2,777		2,147		2,443		7,367		296,945		304,312
Consumer loans:
Home equity and junior liens		94		74		300		468		25,467		25,935
Other consumer		192		50		63		305		28,341		28,646
Total consumer loans		286		124		363		773		53,808		54,581
Total loans	$	4,259	$	3,196	$	4,894	$	12,349	$	568,895	$	581,244

	As of December 31, 2016
	30-59 Days		60-89 Days		90 Days
	Past Due		Past Due		and		Total				Total Loans
(In thousands)	and Accruing		and Accruing		Over		Past Due		Current		Receivable
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	1,247	$	832	$	2,560	$	4,639	$	194,361	$	199,000
Construction		-		-		-		-		8,505		8,505
Total residential mortgage loans		1,247		832		2,560		4,639		202,866		207,505
Commercial loans:
Real estate		1,063		375		1,223		2,661		148,037		150,698
Lines of credit		819		-		-		819		49,658		50,477
Other commercial and industrial		333		-		640		973		39,421		40,394
Tax exempt loans		-		-		-		-		12,523		12,523
Total commercial loans		2,215		375		1,863		4,453		249,639		254,092
Consumer loans:
Home equity and junior liens		105		157		338		600		24,122		24,722
Other consumer		8		13		50		71		6,222		6,293
Total consumer loans		113		170		388		671		30,344		31,015
Total loans	$	3,575	$	1,377	$	4,811	$	9,763	$	482,849	$	492,612

Nonaccrual Loans Segregated by Class of Loan

Year-end nonaccrual loans, segregated by class of loan, were as follows:

	December 31,		December 31,
(In thousands)	2017		2016
Residential mortgage loans:
1-4 family first-lien residential mortgages	$	2,088	$	2,560
		2,088		2,560
Commercial loans:
Real estate		1,545		1,223
Lines of credit		132		-
Other commercial and industrial		766		640
		2,443		1,863
Consumer loans:
Home equity and junior liens		300		338
Other consumer		63		50
		363		388
Total nonaccrual loans	$	4,894	$	4,811

Troubled Debt Restructurings on Financing Receivables

The table below details loans that had been modified as TDRs for the year ended December 31, 2016.

	For the year ended December 31, 2016
(In thousands)	Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Additional provision for loan losses
Individually evaluated for impairment:
Residential mortgage loans		3	$	127	$	135	$	29
Commercial real estate loans		1	$	2,088	$	2,088	$	-

Summary of Impaired Loans Information by Portfolio Class

The following table summarizes impaired loans information by portfolio class:

	December 31, 2017						December 31, 2016
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
(In thousands)	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
1-4 family first-lien residential mortgages	$	900	$	909	$	-	$	850	$	857	$	-
Commercial real estate		3,314		3,360		-		4,254		4,344		-
Commercial lines of credit		507		507		-		400		400		-
Other commercial and industrial		523		524		-		470		470		-
Home equity and junior liens		80		80		-		140		140		-
With an allowance recorded:
1-4 family first-lien residential mortgages		958		958		210		763		763		117
Commercial real estate		2,186		2,187		320		818		872		455
Commercial lines of credit		40		40		40		-		-		-
Other commercial and industrial		525		525		391		552		552		553
Home equity and junior liens		210		210		142		345		345		5
Total:
1-4 family first-lien residential mortgages		1,858		1,867		210		1,613		1,620		117
Commercial real estate		5,500		5,547		320		5,072		5,216		455
Commercial lines of credit		547		547		40		400		400		-
Other commercial and industrial		1,048		1,049		391		1,022		1,022		553
Home equity and junior liens		290		290		142		485		485		5
Totals	$	9,243	$	9,300	$	1,103	$	8,592	$	8,743	$	1,130

Average Recorded Investment In Impaired Loans

The following table presents the average recorded investment in impaired loans for the years ended December 31:

(In thousands)	2017		2016
1-4 family first-lien residential mortgages	$	1,553	$	777
Commercial real estate		5,097		4,325
Commercial lines of credit		447		479
Other commercial and industrial		976		724
Home equity and junior liens		283		325
Other consumer		-		2
Total	$	8,356	$	6,632

Cash Basis Interest Income Recognized On Impaired Loans

The following table presents the cash basis interest income recognized on impaired loans for the years ended December 31:

(In thousands)	2017		2016
1-4 family first-lien residential mortgages	$	71	$	64
Commercial real estate		247		161
Commercial lines of credit		27		22
Other commercial and industrial		30		44
Home equity and junior liens		13		13
Other consumer		-		-
Total	$	388	$	304

Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2017

Allowance For Loan Losses [Abstract]

Changes in the Allowance for Loan Losses

An allocation of a portion of the allowance to a given portfolio class does not limit the Company’s ability to absorb losses in another portfolio class.

	December 31, 2017
	1-4 family
	first-lien											Other
	residential					Commercial			Commercial			commercial
(In thousands)	mortgage			Construction		real estate			lines of credit			and industrial
Allowance for loan losses:
Beginning Balance	$	759		$	-	$	2,935		$	397		$	1,658
Charge-offs		(166	)		-		(505	)		(60	)		(22	)
Recoveries		13			-		-			-			15
Provisions (credits)		259			-		1,159			398			(437	)
Ending balance	$	865		$	-	$	3,589		$	735		$	1,214
Ending balance: related to loans individually evaluated for impairment	$	210		$	-	$	320		$	40		$	391
Ending balance: related to loans collectively evaluated for impairment	$	655		$	-	$	3,269		$	695		$	823
Loans receivables:
Ending balance	$	216,793		$	5,558	$	192,525		$	51,131		$	50,251
Ending balance: individually evaluated for impairment	$	1,858		$	-	$	5,500		$	547		$	1,048
Ending balance: collectively evaluated for impairment	$	214,935		$	5,558	$	187,025		$	50,584		$	49,203

			Home equity			Other
	Tax exempt		and junior liens			consumer			Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1	$	331		$	166		$	-	$	6,247
Charge-offs		-		(69	)		(142	)		-	$	(964	)
Recoveries		-		6			40			-	$	74
Provisions		-		246			144			-	$	1,769
Ending balance	$	1	$	514		$	208		$	-	$	7,126
Ending balance: related to loans individually evaluated for impairment	$	-	$	142		$	-		$	-	$	1,103
Ending balance: related to loans collectively evaluated for impairment	$	1	$	372		$	208		$	-	$	6,023
Loans receivables:
Ending balance	$	10,405	$	25,935		$	28,646				$	581,244
Ending balance: individually evaluated for impairment	$	-	$	290		$	-				$	9,243
Ending balance: collectively evaluated for impairment	$	10,405	$	25,645		$	28,646				$	572,001

	December 31, 2016
	1-4 family
	first-lien											Other
	residential					Commercial			Commercial			commercial
(In thousands)	mortgage			Construction		real estate			lines of credit			and industrial
Allowance for loan losses:
Beginning Balance	$	581		$	-	$	2,983		$	401		$	1,270
Charge-offs		(242	)		-		-			(69	)		-
Recoveries		13			-		6			11			14
Provisions (credits)		407			-		(54	)		54			374
Ending balance	$	759		$	-	$	2,935		$	397		$	1,658
Ending balance: related to loans individually evaluated for impairment	$	117			-	$	455		$	-		$	553
Ending balance: related to loans collectively evaluated for impairment	$	642			-	$	2,480		$	397		$	1,105
Loans receivables:
Ending balance	$	199,000		$	8,505	$	150,698		$	50,477		$	40,394
Ending balance: individually evaluated for impairment	$	1,613		$	-	$	5,072		$	400		$	1,022
Ending balance: collectively evaluated for impairment	$	197,387		$	8,505	$	145,626		$	50,077		$	39,372

				Home equity			Other
	Tax exempt			and junior liens			consumer			Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	3		$	350		$	118		$	-	$	5,706
Charge-offs		-			(147	)		(61	)		-		(519	)
Recoveries		-			10			53			-		107
Provisions (credits)		(2	)		118			56			-		953
Ending balance	$	1		$	331		$	166		$	-	$	6,247
Ending balance: related to loans individually evaluated for impairment	$	-		$	5		$	-			-	$	1,130
Ending balance: related to loans collectively evaluated for impairment	$	1		$	326		$	166			-	$	5,117
Loans receivables:
Ending balance	$	12,523		$	24,722		$	6,293				$	492,612
Ending balance: individually evaluated for impairment	$	-		$	485		$	-				$	8,592
Ending balance: collectively evaluated for impairment	$	12,523		$	24,237		$	6,293				$	484,020

Schedule of Allowance for Loan Losses on Basis of Calculation Methodology

The allocation of the allowance for loan losses summarized on the basis of the Company’s calculation methodology was as follows:

	December 31, 2017
	1-4 family
	first-lien								Other
	residential				Commercial		Commercial		commercial
(In thousands)	mortgage		Construction		real estate		lines of credit		and industrial
Specifically reserved	$	210	$	-	$	320	$	40	$	391
Historical loss rate		104		-		103		40		15
Qualitative factors		551		-		3,166		655		808
Total	$	865	$	-	$	3,589	$	735	$	1,214

			Home equity		Other
	Tax exempt		and junior liens		consumer		Unallocated		Total
Specifically reserved	$	-	$	142	$	-	$	-	$	1,103
Historical loss rate		-		41		59		-		362
Qualitative factors		1		331		149		-		5,661
Total	$	1	$	514	$	208	$	-	$	7,126

	December 31, 2016
	1-4 family
	first-lien								Other
	residential				Commercial		Commercial		commercial
(In thousands)	mortgage		Construction		real estate		lines of credit		and industrial
Specifically reserved	$	117	$	-	$	455	$	-	$	553
Historical loss rate		106		-		45		31		50
Qualitative factors		536		-		2,435		366		1,055
Total	$	759	$	-	$	2,935	$	397	$	1,658

			Home equity		Other
	Tax exempt		and junior liens		consumer		Unallocated		Total
Specifically reserved	$	-	$	5	$	-	$	-	$	1,130
Historical loss rate		-		35		16		-		283
Qualitative factors		1		291		150		-		4,834
Total	$	1	$	331	$	166	$	-	$	6,247

Servicing (Tables)

12 Months Ended

Dec. 31, 2017

Servicing Asset [Abstract]

Mortgage Servicing Rights Capitalized and Amortized

The following summarizes mortgage servicing rights capitalized and amortized:

(In thousands)	2017		2016
Mortgage servicing rights capitalized	$	-	$	-
Mortgage servicing rights amortized	$	12	$	12

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property Plant And Equipment [Abstract]

Summary of Premises and Equipment

A summary of premises and equipment at December 31, is as follows:

(In thousands)	2017		2016
Land	$	2,205	$	2,205
Buildings		14,917		13,704
Furniture, fixtures and equipment		13,515		12,948
Construction in progress		650		455
		31,287		29,312
Less: Accumulated depreciation		15,170		14,135
	$	16,117	$	15,177

Foreclosed Real Estate (Tables)

12 Months Ended

Dec. 31, 2017

Real Estate Owned Disclosure Of Detailed Components [Abstract]

Carrying Amount Of Foreclosed Residential Real Estate Properties Held

(Dollars in thousands)

Number of

properties

December 31,

2017

Number of

properties

December 31,

2016

Foreclosed residential real estate

468

393

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Gross Carrying Amount and Accumulated Amortization for Identifiable Intangible Asset

The gross carrying amount and annual amortization for this identifiable intangible asset are as follows:

	December 31,
(In thousands)	2017			2016
Gross carrying amount	$	198		$	214
Accumulated amortization		(16	)		(16	)
Net amortizing intangibles	$	182		$	198

Estimated Amortization Expense for Each of the Five Succeeding Years

The estimated amortization expense for each of the five succeeding years ended December 31, is as follows:

(In thousands)
2018	$	16
2019		16
2020		16
2021		16
2022		16
Thereafter		102
Total	$	182

Deposits (Tables)

12 Months Ended

Dec. 31, 2017

Deposits [Abstract]

Summary of Deposits

A summary of deposits at December 31 is as follows:

(In thousands)	2017		2016
Savings accounts	$	80,587	$	80,139
Time accounts		160,736		132,007
Time accounts of $250,000 or more		52,691		57,349
Money management accounts		14,905		14,718
MMDA accounts		253,088		192,692
Demand deposit interest-bearing		66,093		53,587
Demand deposit noninterest-bearing		89,783		75,282
Mortgage escrow funds		5,720		5,209
Total Deposits	$	723,603	$	610,983

Scheduled Maturities of Time Deposits

At December 31, 2017, the scheduled maturities of time deposits are as follows:

(In thousands)
Year of Maturity:
2018	$	146,318
2019		42,244
2020		14,522
2021		5,889
2022		2,613
Thereafter		1,841
Total	$	213,427

Summary of Deposits by Type

	At December 31,
	2017						2016
(In thousands)	Non-Brokered		Brokered		Total		Non-Brokered		Brokered		Total
Savings accounts	$	80,587	$	-	$	80,587	$	80,139	$	-	$	80,139
Time accounts		109,666		51,070	$	160,736		89,200		42,807		132,007
Time accounts of $250,000 or more		52,691		-	$	52,691		57,349		-		57,349
Money management accounts		14,905		-	$	14,905		14,718		-		14,718
MMDA accounts		159,032		94,056	$	253,088		105,755		86,937		192,692
Demand deposit interest-bearing		66,093		-	$	66,093		53,587		-		53,587
Demand deposit noninterest-bearing		89,783		-	$	89,783		75,282		-		75,282
Mortgage escrow funds		5,720		-	$	5,720		5,209		-		5,209
Total Deposits	$	578,477	$	145,126	$	723,603	$	481,239	$	129,744	$	610,983

Borrowed Funds (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Composition of Borrowings

The composition of borrowings (excluding subordinated loans) at December 31 is as follows:

(In thousands)	2017		2016
Short-term:
FHLB Advances	$	30,600	$	42,000
Deferred fees hedging		-		(53	)
Total short-term borrowings	$	30,600	$	41,947
Long-term:
FHLB advances	$	43,288	$	17,000
Total long-term borrowings	$	43,288	$	17,000

Scheduled Maturities of Debt

The principal balances, interest rates and maturities of the outstanding long-term borrowings, all of which are at a fixed rate, at December 31, 2017 are as follows:

Term	Principal		Rates
(Dollars in thousands)
Advances with FHLB
Due within 1 year	$	2,000	1.04%
Due within 2 years		31,228	1.16-2.00%
Due within 10 years		10,060	1.62-2.55%
Total advances with FHLB	$	43,288
Total long-term fixed rate borrowings	$	43,288

At December 31, 2017, scheduled repayments of long-term debt are as follows:

(In thousands)
2018	$	2,000
2019		31,228
2020		7,060
2021		1,000
2022		2,000
Thereafter		-
Total	$	43,288

Subordinated Loans (Tables)

12 Months Ended

Dec. 31, 2017

Subordinated Borrowings [Abstract]

Composition of Subordinated Loans

The composition of subordinated loans at December 31 is as follows:

(In thousands)	2017		2016
Subordinated loans:
Junior subordinated debenture	$	5,155	$	5,155
Subordinated loan		9,904		9,870
Total subordinated loans	$	15,059	$	15,025

Schedule of Principal Balances, Interest Rates and Maturities of the Subordinated Loans

The principal balances, interest rates and maturities of the subordinated loans at December 31, 2017 are as follows:

Term	Principal		Rates
(Dollars in thousands)
Subordinated loans:
Due within 10 years	$	9,904	6.48%
Due within 20 years		5,155	3-Month Libor + 1.65%
Total subordinated loans	$	15,059

Scheduled Repayments of the Subordinated Loans

At December 31, 2017, scheduled repayments of the subordinated loans:

(In thousands)
2018	$	-
2019		-
2020		-
2021		-
2022		-
Thereafter		15,059
Total	$	15,059

Employee Benefits and Deferred Compensation and Supplemental Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2017

Compensation And Retirement Disclosure [Abstract]

Changes in Plan Benefit Obligations, Fair Value of Plan Assets and Plans' Funded Status

The following tables set forth the changes in the plans’ benefit obligations, fair value of plan assets and the plans’ funded status as of December 31:

	Pension Benefits						Postretirement Benefits
(In thousands)	2017			2016			2017			2016
Change in benefit obligations:
Benefit obligations at beginning of year	$	9,323		$	9,319		$	154		$	159
Service cost		-			-			-			-
Interest cost		473			464			8			8
Actuarial loss (gain)		916			(231	)		332			-
Benefits paid		(243	)		(229	)		(13	)		(13	)
Benefit obligations at end of year		10,469			9,323			481			154
Change in plan assets:
Fair value of plan assets at beginning of year		13,634			12,808			-			-
Actual return on plan assets		1,565			1,055			-			-
Benefits paid		(243	)		(229	)		(13	)		(13	)
Employer contributions		-			-			13			13
Fair value of plan assets at end of year		14,956			13,634			-			-
Funded Status - asset (liability)	$	4,487		$	4,311		$	(481	)	$	(154	)

Amounts Recognized in Other Comprehensive Loss

Amounts recognized in accumulated other comprehensive loss as of December 31 are as follows:

	Pension Benefits				Postretirement Benefits
(In thousands)	2017		2016		2017		2016
Net loss/(gain)	$	2,827	$	2,685	$	176	$	(165	)
Tax Effect		1,131		1,074		70		(66	)
	$	1,696	$	1,611	$	106	$	(99	)

Significant Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Plan Cost

The significant assumptions used in determining the benefit obligations as of December 31, are as follows:

	Pension Benefits						Postretirement Benefits
	2017			2016			2017			2016
Weighted average discount rate		4.58	%		5.15	%		4.58	%		5.32	%
Rate of increase in future compensation levels		-			-			-			-

The significant assumptions used in determining the net periodic benefit plan cost for years ended December 31, were as follows:

	Pension Benefits						Postretirement Benefits
	2017			2016			2017			2016
Weighted average discount rate		4.58	%		5.05	%		4.58	%		5.23	%
Expected long term rate of return on plan assets		7.00	%		7.50	%		-			-
Rate of increase in future compensation levels		-			-			-			-

Composition of Net Periodic Benefit Plan Cost

The composition of the net periodic benefit plan cost for the years ended December 31 is as follows:

	Pension Benefits						Postretirement Benefits
(In thousands)	2017			2016			2017			2016
Service cost	$	-		$	-		$	-		$	-
Interest cost		473			464			8			8
Expected return on plan assets		(945	)		(951	)		-			-
Amortization of transition obligation		-			-			-			-
Amortization of net losses/(gains)		154			226			(3	)		(3	)
Amortization of unrecognized past service liability		-			-			(5	)		(5	)
Net periodic benefit plan benefit	$	(318	)	$	(261	)	$	-		$	-

Pension Plan Assets Measured at Fair Value

Pension plan assets measured at fair value are summarized below:

	At December 31, 2017
(In thousands)	Level 1		Level 2		Level 3		Total Fair Value
Asset Category:
Mutual funds - equity
Large-cap value (a)	$	-	$	1,058	$	-	$	1,058
Large-cap Growth (b)		-		1,102		-		1,102
Large-cap Core (c)		-		733		-		733
Mid-cap Value (d)		-		236		-		236
Mid-cap Growth (e)		-		223		-		223
Mid-cap Core (f)		-		239		-		239
Small-cap Value (g)		-		178		-		178
Small-cap Growth (h)		-		169		-		169
Small-cap Core (i)		-		349		-		349
International Equity (j)		-		1,419		-		1,419
Equity -Total		-		5,706		-		5,706
Fixed Income Funds
Fixed Income-US Core (k)		-		1,713		-		1,695
Intermediate Duration (l)		-		3,075		-		2,932
Long Duration (m)		-		2,630		-		2,474
Fixed Income-Total		-		7,418		-		7,418
Long/Short Equity(n)		-		1,533		-		1,533
Company Common Stock		-		-		-		-
Cash Equivalents-Money market*		58		241		-		299
Total	$	58	$	14,898	$	-	$	14,956

	At December 31, 2016
(In thousands)	Level 1		Level 2		Level 3		Total Fair Value
Asset Category:
Mutual funds - equity
Large-cap value (a)	$	-	$	958	$	-	$	958
Large-cap Growth (b)		-		860		-		860
Large-cap Core (c)		-		609		-		609
Mid-cap Value (d)		-		204		-		204
Mid-cap Growth (e)		-		186		-		186
Mid-cap Core (f)		-		209		-		209
Small-cap Value (g)		-		167		-		167
Small-cap Growth (h)		-		140		-		140
Small-cap Core (i)		-		312		-		312
International Equity (j)		-		1,131		-		1,131
Equity -Total		-		4,776		-		4,776
Fixed Income Funds
Fixed Income-US Core (k)		-		1,695		-		1,695
Intermediate Duration (l)		-		2,932		-		2,932
Long Duration (m)		-		2,474		-		2,474
Fixed Income-Total		-		7,101		-		7,101
Long/Short Equity(n)		-		1,165		-		1,165
Company Common Stock		-		-		-		-
Cash Equivalents-Money market*		70		522		-		592
Total	$	70	$	13,564	$	-	$	13,634