LOANS (Tables)

3 Months Ended

Mar. 31, 2015

Accounts, Notes, Loans and Financing Receivable [Line Items]

The balances of these classes are summarized as follows:

	March 31,			December 31,
(000's omitted)	2015			2014
Consumer mortgage	$	1,605,019		$	1,613,384
Business lending		1,239,529			1,262,484
Consumer indirect		804,300			833,968
Consumer direct		176,084			184,028
Home equity		338,979			342,342
Gross loans, including deferred origination costs		4,163,911			4,236,206
Allowance for loan losses		(45,005	)		(45,341	)
Loans, net of allowance for loan losses	$	4,118,906		$	4,190,865

Schedule of Accretable Discount Related to Credit Impaired Acquired Loans

The outstanding balance related to credit impaired acquired loans was $5.9 million and $6.1 million at March 31, 2015 and December 31, 2014, respectively. The changes in the accretable discount related to the credit impaired acquired loans are as follows:

(000’s omitted)
Balance at December 31, 2014	$	705
Accretion recognized, year-to-date		(151	)
Net reclassification to accretable from nonaccretable		28
Balance at March 31, 2015	$	582

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 March 31, 2015:

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

	Past Due		90+ Days Past
	30 – 89		Due and				Total
(000’s omitted)	Days		Still Accruing		Nonaccrual		Past Due		Current		Total Loans
Consumer mortgage	$	9,841	$	1,105	$	13,467	$	24,413	$	1,514,128	$	1,538,541
Business lending		4,779		90		2,731		7,600		1,099,128		1,106,728
Consumer indirect		6,419		51		0		6,470		796,892		803,362
Consumer direct		863		29		2		894		170,276		171,170
Home equity		1,642		50		2,078		3,770		277,685		281,455
Total	$	23,544	$	1,325	$	18,278	$	43,147	$	3,858,109	$	3,901,256

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

	Past Due		90+ Days Past
	30 – 89		Due and				Total		Acquired
(000’s omitted)	Days		Still Accruing		Nonaccrual		Past Due		Impaired⁽¹⁾		Current		Total Loans
Consumer mortgage	$	1,671	$	210	$	1,974	$	3,855	$	0	$	62,623	$	66,478
Business lending		939		0		300		1,239		5,280		126,282		132,801
Consumer indirect		29		0		0		29		0		909		938
Consumer direct		80		0		18		98		0		4,816		4,914
Home equity		401		164		414		979		0		56,545		57,524
Total	$	3,120	$	374	$	2,706	$	6,200	$	5,280	$	251,175	$	262,655

(1)

Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans.

The following is an aged analysis of the Company’s past due loans by class as of December 31, 2014:

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

	Past Due		90+ Days Past
	30 – 89		Due and				Total
(000’s omitted)	Days		Still Accruing		Nonaccrual		Past Due		Current		Total Loans
Consumer mortgage	$	13,978	$	2,165	$	13,201	$	29,344	$	1,515,057	$	1,544,401
Business lending		6,738		350		2,291		9,379		1,115,215		1,124,594
Consumer indirect		10,529		82		10		10,621		822,124		832,745
Consumer direct		1,389		36		2		1,427		177,158		178,585
Home equity		1,802		195		2,172		4,169		278,904		283,073
Total	$	34,436	$	2,828	$	17,676	$	54,940	$	3,908,458	$	3,963,398

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

	Past Due		90+ Days Past
	30 – 89		Due and				Total		Acquired
(000’s omitted)	Days		Still Accruing		Nonaccrual		Past Due		Impaired⁽¹⁾		Current		Total Loans
Consumer mortgage	$	1,892	$	232	$	2,122	$	4,246	$	0	$	64,737	$	68,983
Business lending		608		0		489		1,097		5,312		131,481		137,890
Consumer indirect		40		0		0		40		0		1,183		1,223
Consumer direct		174		0		18		192		0		5,251		5,443
Home equity		674		46		426		1,146		0		58,123		59,269
Total	$	3,388	$	278	$	3,055	$	6,721	$	5,312	$	260,775	$	272,808

(1)

Summary of Non-business Impaired Loans

All loan classes are collectively evaluated for impairment except business lending, as described in Note C. A summary of individually evaluated impaired loans as of March 31, 2015 and December 31, 2014 follows:

	March 31,		December 31,
(000’s omitted)	2015		2014
Loans with allowance allocation	$	0	$	0
Loans without allowance allocation		645		0
Carrying balance		645		0
Contractual balance		645		0
Specifically allocated allowance		0		0

Troubled Debt Restructurings on Financing Receivables

Information regarding TDRs as of March 31, 2015 and December 31, 2014 is as follows:

	March 31, 2015												December 31, 2014
(000’s omitted)	Nonaccrual				Accruing				Total				Nonaccrual				Accruing				Total
		#	Amount			#	Amount			#	Amount			#	Amount			#	Amount			#	Amount
Consumer mortgage		49	$	2,059		36	$	1,641		85	$	3,700		49	$	2,092		37	$	1,770		86	$	3,862
Business lending		4		307		3		463		7		770		6		442		3		468		9		910
Consumer indirect		0		0		75		649		75		649		0		0		79		615		79		615
Consumer direct		0		0		22		62		22		62		0		0		25		69		25		69
Home equity		13		127		13		271		26		398		13		218		13		278		26		496
Total		66	$	2,493		149	$	3,086		215	$	5,579		68	$	2,752		157	$	3,200		225	$	5,952

The following table presents information related to loans modified in a TDR during the three months ended March 31, 2015 and 2014. Of the loans noted in the table below, all loans for the three months ended March 31, 2015 and 2014 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial.

	Three Month Ended March 31, 2015				Three Month Ended March 31, 2014
(000’s omitted)	Number of loans modified		Outstanding Balance		Number of loans modified		Outstanding Balance
Consumer mortgage		4	$	213		11	$	533
Business lending		0		0		4		192
Consumer indirect		7		101		12		112
Consumer direct		1		4		2		10
Home equity		1		15		1		30
Total		13	$	333		30	$	877

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:

	Three Months Ended March 31, 2015
	Consumer			Business			Consumer			Consumer			Home					Acquired
(000’s omitted)	Mortgage			Lending			Indirect			Direct			Equity			Unallocated		Impaired		Total
Beginning balance	$	10,286		$	15,787		$	11,544		$	3,083		$	2,701		$	1,767	$	173	$	45,341
Charge-offs		(443	)		(133	)		(1,427	)		(345	)		(66	)		0		0		(2,414	)
Recoveries		21			82			1,152			193			7			0		0		1,455
Provision		369			(331	)		(23	)		(52	)		21			616		23		623
Ending balance	$	10,233		$	15,405		$	11,246		$	2,879		$	2,663		$	2,383	$	196	$	45,005


	Three Months Ended March 31, 2014
	Consumer			Business			Consumer			Consumer			Home					Acquired
(000’s omitted)	Mortgage			Lending			Indirect			Direct			Equity			Unallocated		Impaired			Total
Beginning balance	$	8,994		$	17,507		$	10,248		$	3,181		$	1,830		$	2,029	$	530		$	44,319
Charge-offs		(167	)		(120	)		(1,427	)		(492	)		(129	)		0		(13	)		(2,348	)
Recoveries		41			171			796			212			6			0		0			1,226
Provision		413			(512	)		969			186			111			149		(316	)		1,000
Ending balance	$	9,281		$	17,046		$	10,586		$	3,087		$	1,818		$	2,178	$	201		$	44,197

Business Lending [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Loans by Credit Quality Indicator

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

	March 31, 2015						December 31, 2014
(000’s omitted)	Legacy		Acquired		Total		Legacy		Acquired		Total
Pass	$	936,556	$	90,340	$	1,026,896	$	949,960	$	93,510	$	1,043,470
Special mention		100,507		16,785		117,292		103,176		18,038		121,214
Classified		69,665		20,396		90,061		71,458		21,030		92,488
Doubtful		0		0		0		0		0		0
Acquired impaired		0		5,280		5,280		0		5,312		5,312
Total	$	1,106,728	$	132,801	$	1,239,529	$	1,124,594	$	137,890	$	1,262,484

All Other Loan [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Loans by Credit Quality Indicator

The following table details the balances in all other loan categories at March 31, 2015:

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

	Consumer		Consumer		Consumer		Home
(000’s omitted)	Mortgage		Indirect		Direct		Equity		Total
Performing	$	1,523,969	$	803,311	$	171,139	$	279,327	$	2,777,746
Nonperforming		14,572		51		31		2,128		16,782
Total	$	1,538,541	$	803,362	$	171,170	$	281,455	$	2,794,528

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

	Consumer		Consumer		Consumer		Home
(000’s omitted)	Mortgage		Indirect		Direct		Equity		Total
Performing	$	64,294	$	938	$	4,896	$	56,946	$	127,074
Nonperforming		2,184		0		18		578		2,780
Total	$	66,478	$	938	$	4,914	$	57,524	$	129,854

The following table details the balances in all other loan categories at December 31, 2014:

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

	Consumer		Consumer		Consumer		Home
(000’s omitted)	Mortgage		Indirect		Direct		Equity		Total
Performing	$	1,529,035	$	832,653	$	178,547	$	280,706	$	2,820,941
Nonperforming		15,366		92		38		2,367		17,863
Total	$	1,544,401	$	832,745	$	178,585	$	283,073	$	2,838,804

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

	Consumer		Consumer		Consumer		Home
(000’s omitted)	Mortgage		Indirect		Direct		Equity		Total
Performing	$	66,629	$	1,223	$	5,425	$	58,797	$	132,074
Nonperforming		2,354		0		18		472		2,844
Total	$	68,983	$	1,223	$	5,443	$	59,269	$	134,918