LOANS (Tables)

12 Months Ended

Dec. 31, 2011

Loans at December 31 are summarized as follows:

(000's omitted)	2011	2010
Consumer mortgage	$1,214,621	$1,057,332
Business lending	1,226,439	1,023,286
Consumer installment - indirect	556,955	494,529
Consumer installment - direct	149,170	146,575
Home equity	323,840	304,641
Gross loans, including deferred origination costs	3,471,025	3,026,363
Allowance for loan losses	(42,213)	(42,510)
Loans, net of allowance for loan losses	$3,428,812	$2,983,853

Summary of aggregate amounts loaned to related parties of the company

Certain directors and executive officers of the Company, as well as associates of such persons, are loan customers. Loans to these individuals were made in the ordinary course of business under normal credit terms and do not have more than a normal risk of collection. Following is a summary of the aggregate amount of such loans during 2011 and 2010.

(000's omitted)	2011	2010
Balance at beginning of year	$18,765	$28,289
New loans	2,690	3,050
Payments	(9,905)	(12,574)
Balance at end of year	$11,550	$18,765

Aged analysis of the company's past due loans by class

The following is an aged analysis of the Company's past due loans, by class as of December 31, 2011:

Legacy Loans (excludes loans acquired after January 1, 2009)

(000's omitted)	30 - 89 days	90+ Days Past Due and Still Accruing	Nonaccrual	Total Past Due	Current	Total Loans
Consumer mortgage	$16,026	$2,144	$5,755	$23,925	$1,111,795	$1,135,720
Business lending	4,799	389	10,966	16,154	953,745	969,899
Consumer installment - indirect	8,847	32	0	8,879	527,030	535,909
Consumer installment – direct	1,912	95	0	2,007	138,500	140,507
Home equity	2,269	218	864	3,351	290,093	293,444
Total	$33,853	$2,878	$17,585	$54,316	$3,021,163	$3,075,479

Acquired Loans (includes loans acquired after January 1, 2009)

(000's omitted)	30 - 89 days	90+ Days Past Due and Still Accruing	Nonaccrual	Total Past Due	Purchased Impaired	Current	Total Loans
Consumer mortgage	$985	$27	$765	$1,777	$0	$77,124	$78,901
Business lending	3,473	10	9,592	13,075	17,428	226,037	256,540
Consumer installment - indirect	737	0	2	739	0	20,307	21,046
Consumer installment – direct	167	0	0	167	0	8,496	8,663
Home equity	465	175	341	981	0	29,415	30,396
Total	$5,827	$212	$10,700	$16,739	$17,428	$361,379	$395,546

The following is an aged analysis of the Company's past due loans by class as of December 31, 2010:

(000's omitted)	30 - 89 days	90+ Days Past Due and Still Accruing	Nonaccrual	Total Past Due	Current	Total Loans
Consumer mortgage	$16,614	$2,308	$4,737	$23,659	$1,033,673	$1,057,332
Business lending	5,965	247	9,715	15,927	1,007,359	1,023,286
Consumer installment – indirect	10,246	131	0	10,377	484,152	494,529
Consumer installment – direct	2,514	96	0	2,610	143,965	146,575
Home equity	3,960	309	926	5,195	299,446	304,641
Total	$39,299	$3,091	$15,378	$57,768	$2,968,595	$3,026,363

Schedule of business lending loans by credit quality category

The following table shows the amount of business lending loans by credit quality category:

	December 31, 2011
(000's omitted)	Legacy	Acquired	Total	December 31, 2010
Pass	$732,873	$157,494	$890,367	$753,252
Special mention	118,800	47,890	166,690	159,906
Classified	118,226	33,728	151,954	110,128
Purchased impaired	0	17,428	17,428	0
Total	$969,899	$256,540	$1,226,439	$1,023,286

Schedule of loans by credit quality indicator

Legacy loans (excludes loans acquired after January 1, 2009)

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$1,127,821	$535,877	$140,412	$292,362	$2,096,472
Nonperforming	7,899	32	95	1,082	9,108
Total	$1,135,720	$535,909	$140,507	$293,444	$2,105,580

Acquired loans (includes loans acquired after January 1, 2009

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$78,109	$21,044	$8,663	$29,880	$137,696
Nonperforming	792	2	0	516	1,310
Total	$78,901	$21,046	$8,663	$30,396	$139,006

The following table details the balances in all other loan categories at December 31, 2010:

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$1,052,595	$494,529	$146,575	$303,715	$1,997,414
Nonperforming	4,737	0	0	926	5,663
Total	$1,057,332	$494,529	$146,575	$304,641	$2,003,077

Summary of non-business impaired loans

All loan classes are collectively evaluated for impairment except business lending, as described in Note A. A summary of impaired loans, excluding purchased impaired, as of December 31, 2011 and 2010 are summarized as follows:

(000's omitted)	2011	2010
Loans with reserve	$4,118	$1,465
Loans without reserve	2,308	3,846
Carrying balance	6,426	5,311
Contractual balance	8,527	7,042
Specifically allocated allowance	895	762
Average impaired loans	5,652	9,752
Interest income recognized	314	263
Troubled debt restructured loans	0	0

Schedule of allowance for loan losses by class

The allowance for loan losses is general in nature and is available to absorb losses from any loan type despite the analysis below. The following presents by class the activity in the allowance for loan losses:

	Consumer	Business	Home	Consumer	Consumer		Acquired
(000's omitted)	Mortgage	Lending	Equity	Indirect	Direct	Unallocated	Impaired	Total
Balance at December 31, 2009	$1,127	$23,577	$374	$10,004	$3,660	$3,168	$0	$41,910
Charge-offs	(583)	(3,950)	(181)	(4,279)	(1,719)	0	0	(10,712)
Recoveries	71	730	7	2,569	730	0	0	4,107
Provision	1,836	1,969	489	1,628	1,306	(23)	0	7,205
Balance at December 31, 2010	2,451	22,326	689	9,922	3,977	3,145	0	42,510
Charge-offs	(748)	(2,964)	(265)	(4,464)	(1,273)	0	0	(9,714)
Recoveries	30	692	85	3,200	674	0	0	4,681
Provision	2,918	520	621	302	(88)	77	386	4,736
Balance at December 31, 2011	$4,651	$20,574	$1,130	$8,960	$3,290	$3,222	$386	$42,213

Schedule of accretable discount related to credit impaired acquired loans

The changes in the accretable discount related to the credit impaired acquired loans are as follows:

Balance at December 31, 2010	$0
Wilber acquisition	2,509
Accretion income recognized, to-date	(844)
Net reclassification from nonaccretable to accretable	945
Balance at December 31, 2011	$2,610