LOANS (Tables)

6 Months Ended

Jun. 30, 2021

Loans and Leases Receivable Disclosure [Line Items]

Schedule of loans receivable, net

The segments of the Company’s loan portfolio are summarized as follows:

	June 30,		December 31,
(000’s omitted)	2021		2020
Business lending	$	3,186,487	$	3,440,077
Consumer mortgage		2,408,499		2,401,499
Consumer indirect		1,109,504		1,021,885
Consumer direct		148,540		152,657
Home equity		391,117		399,834
Gross loans, including deferred origination costs		7,244,147		7,415,952
Allowance for credit losses		(51,750)		(60,869)
Loans, net of allowance for credit losses	$	7,192,397	$	7,355,083

Schedule of aged analysis of past due loans by class

The following table presents the aging of the amortized cost basis of the Company’s past due loans, including PCD loans, by segment as of June 30, 2021:

	Past Due		90+ Days Past
	30 – 89		Due and				Total
(000’s omitted)	Days		Still Accruing		Nonaccrual		Past Due		Current		Total Loans
Business lending	$	972	$	228	$	49,877	$	51,077	$	3,135,410	$	3,186,487
Consumer mortgage		8,645		1,259		16,025		25,929		2,382,570		2,408,499
Consumer indirect		7,110		73		0		7,183		1,102,321		1,109,504
Consumer direct		507		15		2		524		148,016		148,540
Home equity		1,077		147		2,572		3,796		387,321		391,117
Total	$	18,311	$	1,722	$	68,476	$	88,509	$	7,155,638	$	7,244,147

The following table presents the aging of the amortized cost basis of the Company’s past due loans, including PCD loans, by segment as of December 31, 2020:

	Past Due		90+ Days Past
	30 – 89		Due and				Total
(000’s omitted)	Days		Still Accruing		Nonaccrual		Past Due		Current		Total Loans
Business lending	$	4,896	$	59	$	55,709	$	60,664	$	3,379,413	$	3,440,077
Consumer mortgage		13,236		3,051		14,970		31,257		2,370,242		2,401,499
Consumer indirect		13,161		219		1		13,381		1,008,504		1,021,885
Consumer direct		1,170		28		3		1,201		151,456		152,657
Home equity		2,296		565		2,246		5,107		394,727		399,834
Total	$	34,759	$	3,922	$	72,929	$	111,610	$	7,304,342	$	7,415,952

Schedule of non-business impaired loans

All loan classes are collectively evaluated for impairment except business lending. A summary of individually evaluated impaired business loans as of June 30, 2021 and December 31, 2020 follows:

	June 30,		December 31,
(000’s omitted)	2021		2020
Loans with allowance allocation	$	25,534	$	27,437
Loans without allowance allocation		6,529		8,138
Carrying balance		32,063		35,575
Contractual balance		34,228		38,362
Specifically allocated allowance		2,800		3,874

Schedule of troubled debt restructurings on financing receivables

Information regarding TDRs as of June 30, 2021 and December 31, 2020 is as follows:

	June 30, 2021									December 31, 2020
(000’s omitted)	Nonaccrual			Accruing			Total			Nonaccrual			Accruing			Total
	#	Amount		#	Amount		#	Amount		#	Amount		#	Amount		#	Amount
Business lending	6	$	445	4	$	180	10	$	625	6	$	529	4	$	191	10	$	720
Consumer mortgage	58		2,553	42		2,074	100		4,627	56		2,413	48		2,266	104		4,679
Consumer indirect	0		0	79		916	79		916	0		0	86		951	86		951
Consumer direct	0		0	17		14	17		14	0		0	23		85	23		85
Home equity	10		252	12		248	22		500	11		285	13		264	24		549
Total	74	$	3,250	154	$	3,432	228	$	6,682	73	$	3,227	174	$	3,757	247	$	6,984

The following table presents information related to loans modified in a TDR during the three months and six months ended June 30, 2021 and 2020. Of the loans noted in the table below, all consumer mortgage loans for the three months and six months ended June 30, 2021 and 2020 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial.

	Three Months Ended			Three Months Ended
	June 30, 2021			June 30, 2020
	Number of	Outstanding		Number of	Outstanding
(000’s omitted)	loans modified	Balance		loans modified	Balance
Business lending	0	$	0	0	$	0
Consumer mortgage	7		366	3		174
Consumer indirect	9		116	3		47
Consumer direct	0		0	0		0
Home equity	0		0	1		28
Total	16	$	482	7	$	249

	Six Months Ended			Six Months Ended
	June 30, 2021			June 30, 2020
	Number of	Outstanding		Number of	Outstanding
(000’s omitted)	loans modified	Balance		loans modified	Balance
Business lending	0	$	0	0	$	0
Consumer mortgage	10		474	9		738
Consumer indirect	15		177	14		151
Consumer direct	1		6	1		11
Home equity	0		0	1		28
Total	26	$	657	25	$	928

Schedule of allowance for loan losses by class

The following presents by segment the activity in the allowance for credit losses during the three months and six months ended June 30, 2021 and 2020:

	Three Months Ended June 30, 2021
	Beginning		Charge-						Ending
(000’s omitted)	balance		offs		Recoveries		Provision		balance
Business lending	$	27,042	$	(2)	$	255	$	(3,878)	$	23,417
Consumer mortgage		9,686		(142)		9		448		10,001
Consumer indirect		11,120		(750)		1,183		(450)		11,103
Consumer direct		2,682		(195)		213		(152)		2,548
Home equity		1,543		(17)		5		265		1,796
Unallocated		1,000		0		0		0		1,000
Purchased credit deteriorated		1,996		0		33		(144)		1,885
Allowance for credit losses – loans		55,069		(1,106)		1,698		(3,911)		51,750
Liabilities for off-balance-sheet credit exposures		1,189		0		0		(427)		762
Total allowance for credit losses	$	56,258	$	(1,106)	$	1,698	$	(4,338)	$	52,512

	Three Months Ended June 30, 2020
	Beginning		Charge-				Steuben				Ending
(000’s omitted)	balance		offs		Recoveries		acquisition		Provision		balance
Business lending	$	19,489	$	(7)	$	84	$	2,483	$	2,155	$	24,204
Consumer mortgage		12,430		(234)		36		146		710		13,088
Consumer indirect		13,694		(1,431)		833		183		2,587		15,866
Consumer direct		3,737		(341)		171		87		374		4,028
Home equity		2,484		(81)		12		235		40		2,690
Unallocated		772		0		0		0		228		1,000
Purchased credit deteriorated		3,046		0		48		528		(61)		3,561
Allowance for credit losses – loans		55,652		(2,094)		1,184		3,662		6,033		64,437
Liabilities for off-balance-sheet credit exposures		845		0		0		67		540		1,452
Total allowance for credit losses	$	56,497	$	(2,094)	$	1,184	$	3,729	$	6,573	$	65,889

	Six Months Ended June 30, 2021
	Beginning		Charge-						Ending
(000’s omitted)	balance		offs		Recoveries		Provision		balance
Business lending	$	28,190	$	(53)	$	322	$	(5,042)	$	23,417
Consumer mortgage		10,672		(242)		19		(448)		10,001
Consumer indirect		13,696		(2,149)		2,429		(2,873)		11,103
Consumer direct		3,207		(513)		444		(590)		2,548
Home equity		2,222		(115)		9		(320)		1,796
Unallocated		1,000		0		0		0		1,000
Purchased credit deteriorated		1,882		0		60		(57)		1,885
Allowance for credit losses – loans		60,869		(3,072)		3,283		(9,330)		51,750
Liabilities for off-balance-sheet credit exposures		1,489		0		0		(727)		762
Total allowance for credit losses	$	62,358	$	(3,072)	$	3,283	$	(10,057)	$	52,512

	Six Months Ended June 30, 2020
	Beginning				Beginning
	balance,				balance,
	prior to the				after
	adoption of		Impact of		adoption of						Steuben				Ending
(000’s omitted)	ASC 326		ASC 326		ASC 326		Charge-offs		Recoveries		acquisition		Provision		balance
Business lending	$	19,426	$	288	$	19,714	$	(183)	$	222	$	2,483	$	1,968	$	24,204
Consumer mortgage		10,269		(1,051)		9,218		(420)		44		146		4,100		13,088
Consumer indirect		13,712		(997)		12,715		(3,510)		1,996		183		4,482		15,866
Consumer direct		3,255		(643)		2,612		(874)		353		87		1,850		4,028
Home equity		2,129		808		2,937		(154)		18		235		(346)		2,690
Unallocated		957		43		1,000		0		0		0		0		1,000
Purchased credit deteriorated		0		3,072		3,072		0		48		528		(87)		3,561
Purchased credit impaired		163		(163)		0		0		0		0		0		0
Allowance for credit losses – loans		49,911		1,357		51,268		(5,141)		2,681		3,662		11,967		64,437
Liabilities for off-balance-sheet credit exposures		0		1,185		1,185		0		0		67		200		1,452
Total allowance for credit losses	$	49,911	$	2,542	$	52,453	$	(5,141)	$	2,681	$	3,729	$	12,167	$	65,889

Schedule of financing receivables purchased and Sold

The following table presents the carrying amounts of loans purchased and sold during the six months ended June 30, 2021 by portfolio segment:

	Business		Consumer		Consumer		Consumer		Home
(000’s omitted)	lending		mortgage		indirect		direct		equity		Total
Purchases	$	0	$	0	$	0	$	0	$	0	$	0
Sales		848		10,860		0		0		0		11,708

Business Lending [Member]

Loans and Leases Receivable Disclosure [Line Items]

Schedule of loans by credit quality indicator

The following tables show the amount of business lending loans by credit quality category at June 30, 2021 and December 31, 2020:

													Revolving
													Loans
(000’s omitted)	Term Loans Amortized Cost Basis by Origination Year												Amortized
June 30, 2021	2021		2020		2019		2018		2017		Prior		Cost Basis		Total
Business lending:
Risk rating
Pass	$	343,472	$	439,365	$	338,583	$	284,580	$	189,477	$	661,491	$	507,921	$	2,764,889
Special mention		2,001		12,961		12,084		36,635		21,586		72,145		34,484		191,896
Classified		360		2,163		21,063		49,150		27,397		84,543		42,178		226,854
Doubtful		0		0		16		1,931		0		35		866		2,848
Total business lending	$	345,833	$	454,489	$	371,746	$	372,296	$	238,460	$	818,214	$	585,449	$	3,186,487

													Revolving
													Loans
(000’s omitted)	Term Loans Amortized Cost Basis by Origination Year												Amortized
December 31, 2020	2020		2019		2018		2017		2016		Prior		Cost Basis		Total
Business lending:
Risk rating
Pass	$	860,178	$	351,350	$	312,087	$	217,138	$	231,453	$	543,999	$	483,018	$	2,999,223
Special mention		14,687		36,041		28,410		21,875		29,386		51,657		52,732		234,788
Classified		6,336		4,560		30,422		24,807		14,891		65,157		56,000		202,173
Doubtful		0		18		2,888		0		0		108		879		3,893
Total business lending	$	881,201	$	391,969	$	373,807	$	263,820	$	275,730	$	660,921	$	592,629	$	3,440,077

All Other Loans [Member]

Loans and Leases Receivable Disclosure [Line Items]

Schedule of loans by credit quality indicator

													Revolving
													Loans
(000’s omitted)	Term Loans Amortized Cost Basis by Origination Year												Amortized
June 30, 2021	2021		2020		2019		2018		2017		Prior		Cost Basis		Total
Consumer mortgage:
FICO AB
Performing	$	217,537	$	245,277	$	204,560	$	139,256	$	135,992	$	660,613	$	0	$	1,603,235
Nonperforming		0		171		0		261		516		2,765		0		3,713
Total FICO AB		217,537		245,448		204,560		139,517		136,508		663,378		0		1,606,948
FICO CDE
Performing		58,224		128,942		94,750		73,362		64,401		346,907		21,394		787,980
Nonperforming		0		234		901		744		702		10,990		0		13,571
Total FICO CDE		58,224		129,176		95,651		74,106		65,103		357,897		21,394		801,551
Total consumer mortgage	$	275,761	$	374,624	$	300,211	$	213,623	$	201,611	$	1,021,275	$	21,394	$	2,408,499
Consumer indirect:
Performing	$	317,236	$	255,939	$	240,528	$	148,990	$	59,328	$	87,410	$	0	$	1,109,431
Nonperforming		0		10		38		13		0		12		0		73
Total consumer indirect	$	317,236	$	255,949	$	240,566	$	149,003	$	59,328	$	87,422	$	0	$	1,109,504
Consumer direct:
Performing	$	37,644	$	37,762	$	34,503	$	18,947	$	7,557	$	6,100	$	6,010	$	148,523
Nonperforming		0		0		0		2		0		15		0		17
Total consumer direct	$	37,644	$	37,762	$	34,503	$	18,949	$	7,557	$	6,115	$	6,010	$	148,540
Home equity:
Performing	$	33,503	$	47,348	$	42,432	$	23,450	$	19,224	$	43,050	$	179,391	$	388,398
Nonperforming		0		56		22		107		79		722		1,733		2,719
Total home equity	$	33,503	$	47,404	$	42,454	$	23,557	$	19,303	$	43,772	$	181,124	$	391,117

The following table details the balances in all other loan categories at December 31, 2020:

													Revolving
													Loans
(000’s omitted)	Term Loans Amortized Cost Basis by Origination Year												Amortized
December 31, 2020	2020		2019		2018		2017		2016		Prior		Cost Basis		Total
Consumer mortgage:
FICO AB
Performing	$	260,588	$	227,027	$	166,638	$	163,653	$	160,911	$	614,976	$	321	$	1,594,114
Nonperforming		0		0		275		398		345		2,709		0		3,727
Total FICO AB		260,588		227,027		166,913		164,051		161,256		617,685		321		1,597,841
FICO CDE
Performing		115,049		102,788		80,973		75,289		83,214		314,668		17,382		789,363
Nonperforming		0		1,010		582		877		1,786		10,040		0		14,295
Total FICO CDE		115,049		103,798		81,555		76,166		85,000		324,708		17,382		803,658
Total consumer mortgage	$	375,637	$	330,825	$	248,468	$	240,217	$	246,256	$	942,393	$	17,703	$	2,401,499
Consumer indirect:
Performing	$	303,471	$	305,901	$	202,373	$	86,497	$	61,449	$	61,975	$	0	$	1,021,666
Nonperforming		51		52		82		17		16		1		0		219
Total consumer indirect	$	303,522	$	305,953	$	202,455	$	86,514	$	61,465	$	61,976	$	0	$	1,021,885
Consumer direct:
Performing	$	49,181	$	46,992	$	27,872	$	12,326	$	5,232	$	4,146	$	6,878	$	152,627
Nonperforming		1		19		2		5		0		3		0		30
Total consumer direct	$	49,182	$	47,011	$	27,874	$	12,331	$	5,232	$	4,149	$	6,878	$	152,657
Home equity:
Performing	$	48,145	$	48,780	$	28,074	$	23,524	$	17,828	$	35,900	$	194,773	$	397,024
Nonperforming		0		24		73		104		183		490		1,936		2,810
Total home equity	$	48,145	$	48,804	$	28,147	$	23,628	$	18,011	$	36,390	$	196,709	$	399,834