LOANS (Tables)

3 Months Ended

Mar. 31, 2018

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

The balances of these classes are summarized as follows:

(000's omitted)	March 31, 2018			December 31, 2017
Business lending	$	2,426,086		$	2,424,223
Consumer mortgage		2,211,882			2,220,298
Consumer indirect		1,008,198			1,011,978
Consumer direct		173,032			179,929
Home equity		407,832			420,329
Gross loans, including deferred origination costs		6,227,030			6,256,757
Allowance for loan losses		(48,103	)		(47,583	)
Loans, net of allowance for loan losses	$	6,178,927		$	6,209,174

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:

(000’s omitted)
Balance at December 31, 2017	$	976
Accretion recognized, year-to-date		(278	)
Net reclassification between accretable and non-accretable		300
Balance at March 31, 2018	$	998

Aged Analysis of Past Due Loans by Class

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

(000’s omitted)	Past Due 30 – 89 Days		90+ Days Past Due and Still Accruing		Nonaccrual		Total Past Due		Current		Total Loans
Business lending	$	5,062	$	4,069	$	3,831	$	12,962	$	1,437,044	$	1,450,006
Consumer mortgage		10,236		1,437		10,086		21,759		1,744,105		1,765,864
Consumer indirect		8,664		182		5		8,851		981,915		990,766
Consumer direct		1,091		30		0		1,121		167,396		168,517
Home equity		1,404		176		1,239		2,819		313,908		316,727
Total	$	26,457	$	5,894	$	15,161	$	47,512	$	4,644,368	$	4,691,880

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

(000’s omitted)	Past Due 30 – 89 Days		90+ Days Past Due and Still Accruing		Nonaccrual		Total Past Due		Acquired Impaired⁽¹⁾		Current		Total Loans
Business lending	$	4,119	$	0	$	3,967	$	8,086	$	8,496	$	959,498	$	976,080
Consumer mortgage		1,991		282		2,855		5,128		0		440,890		446,018
Consumer indirect		106		35		0		141		0		17,291		17,432
Consumer direct		105		0		0		105		0		4,410		4,515
Home equity		522		214		1,256		1,992		0		89,113		91,105
Total	$	6,843	$	531	$	8,078	$	15,452	$	8,496	$	1,511,202	$	1,535,150

(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, 2017:

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

(000’s omitted)	Past Due 30 – 89 Days		90+ Days Past Due and Still Accruing		Nonaccrual		Total Past Due		Current		Total Loans
Business lending	$	2,283	$	571	$	3,944	$	6,798	$	1,369,801	$	1,376,599
Consumer mortgage		13,564		1,500		10,722		25,786		1,728,823		1,754,609
Consumer indirect		14,197		295		0		14,492		977,344		991,836
Consumer direct		1,875		48		0		1,923		172,556		174,479
Home equity		1,116		94		1,354		2,564		319,576		322,140
Total	$	33,035	$	2,508	$	16,020	$	51,563	$	4,568,100	$	4,619,663

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

(000’s omitted)	Past Due 30 – 89 Days		90+ Days Past Due and Still Accruing		Nonaccrual		Total Past Due		Acquired Impaired⁽¹⁾		Current		Total Loans
Business lending	$	4,661	$	0	$	4,328	$	8,989	$	10,115	$	1,028,520	$	1,047,624
Consumer mortgage		2,603		26		3,066		5,695		0		459,994		465,689
Consumer indirect		245		8		0		253		0		19,889		20,142
Consumer direct		100		0		0		100		0		5,350		5,450
Home equity		634		170		1,326		2,130		0		96,059		98,189
Total	$	8,243	$	204	$	8,720	$	17,167	$	10,115	$	1,609,812	$	1,637,094

(1)

Summary of Non-Business Impaired Loans

A summary of individually evaluated impaired loans as of March 31, 2018 and December 31, 2017 follows:

(000’s omitted)	March 31, 2018		December 31, 2017
Loans with allowance allocation	$	4,510	$	5,125
Loans without allowance allocation		1,422		884
Carrying balance		5,932		6,009
Contractual balance		10,146		9,165
Specifically allocated allowance		878		804

Troubled Debt Restructurings on Financing Receivables

Information regarding TDRs as of March 31, 2018 and December 31, 2017 is as follows:

	March 31, 2018												December 31, 2017
(000’s omitted)	Nonaccrual				Accruing				Total				Nonaccrual				Accruing				Total
		#	Amount			#	Amount			#	Amount			#	Amount			#	Amount			#	Amount
Business lending		8	$	312		3	$	280		11	$	592		8	$	218		7	$	501		15	$	719
Consumer mortgage		48		1,976		43		1,651		91		3,627		51		2,265		44		1,750		95		4,015
Consumer indirect		0		0		68		847		68		847		0		0		71		883		71		883
Consumer direct		0		0		23		65		23		65		0		0		25		69		25		69
Home equity		11		234		7		201		18		435		13		245		7		204		20		449
Total		67	$	2,522		144	$	3,044		211	$	5,566		72	$	2,728		154	$	3,407		226	$	6,135

The following table presents information related to loans modified in a TDR during the three months ended March 31, 2018 and 2017. Of the loans noted in the table below, all loans for the three months ended March 31, 2018 and 2017 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial.

	Three Months Ended March 31, 2018				Three Months Ended March 31, 2017
(000’s omitted)	Number of loans modified		Outstanding Balance		Number of loans modified		Outstanding Balance
Business lending		1	$	93		0	$	0
Consumer mortgage		0		0		7		502
Consumer indirect		4		41		8		106
Consumer direct		2		2		4		15
Home equity		0		0		2		98
Total		7	$	136		21	$	721

Schedule of Allowance for Loan Losses by Class

The following presents by class the activity in the allowance for loan losses:

	Three Months Ended March 31, 2018
(000’s omitted)	Business Lending			Consumer Mortgage			Consumer Indirect			Consumer Direct			Home Equity			Unallocated			Acquired Impaired			Total
Beginning balance	$	17,257		$	10,465		$	13,468		$	3,039		$	2,107		$	1,100		$	147		$	47,583
Charge-offs		(1,669	)		(199	)		(2,284	)		(496	)		(56	)		0			(43	)		(4,747	)
Recoveries		198			8			1,151			222			9			0			0			1,588
Provision		1,821			108			1,363			219			(20	)		(16	)		204			3,679
Ending balance	$	17,607		$	10,382		$	13,698		$	2,984		$	2,040		$	1,084		$	308		$	48,103

	Three Months Ended March 31, 2017
(000’s omitted)	Business Lending			Consumer Mortgage			Consumer Indirect			Consumer Direct			Home Equity			Unallocated		Acquired Impaired		Total
Beginning balance	$	17,220		$	10,094		$	13,782		$	2,979		$	2,399		$	651	$	108	$	47,233
Charge-offs		(695	)		(85	)		(1,947	)		(417	)		(38	)		0		0		(3,182	)
Recoveries		71			7			869			245			25			0		0		1,217
Provision		261			133			1,292			45			(27	)		122		2		1,828
Ending balance	$	16,857		$	10,149		$	13,996		$	2,852		$	2,359		$	773	$	110	$	47,096

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, 2018						December 31, 2017
(000’s omitted)	Legacy		Acquired		Total		Legacy		Acquired		Total
Pass	$	1,253,688	$	891,639	$	2,145,327	$	1,170,156	$	963,981	$	2,134,137
Special mention		120,881		43,034		163,915		129,076		37,321		166,397
Classified		75,283		31,313		106,596		77,367		34,628		111,995
Doubtful		154		1,598		1,752		0		1,579		1,579
Acquired impaired		0		8,496		8,496		0		10,115		10,115
Total	$	1,450,006	$	976,080	$	2,426,086	$	1,376,599	$	1,047,624	$	2,424,223

All Other Loans [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, 2018:

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

(000’s omitted)	Consumer Mortgage		Consumer Indirect		Consumer Direct		Home Equity		Total
Performing	$	1,754,341	$	990,579	$	168,487	$	315,312	$	3,228,719
Nonperforming		11,523		187		30		1,415		13,155
Total	$	1,765,864	$	990,766	$	168,517	$	316,727	$	3,241,874

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

(000’s omitted)	Consumer Mortgage		Consumer Indirect		Consumer Direct		Home Equity		Total
Performing	$	442,881	$	17,397	$	4,515	$	89,635	$	554,428
Nonperforming		3,137		35		0		1,470		4,642
Total	$	446,018	$	17,432	$	4,515	$	91,105	$	559,070

The following table details the balances in all other loan categories at December 31, 2017:

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

(000’s omitted)	Consumer Mortgage		Consumer Indirect		Consumer Direct		Home Equity		Total
Performing	$	1,742,387	$	991,541	$	174,431	$	320,692	$	3,229,051
Nonperforming		12,222		295		48		1,448		14,013
Total	$	1,754,609	$	991,836	$	174,479	$	322,140	$	3,243,064

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

(000’s omitted)	Consumer Mortgage		Consumer Indirect		Consumer Direct		Home Equity		Total
Performing	$	462,597	$	20,134	$	5,450	$	96,693	$	584,874
Nonperforming		3,092		8		0		1,496		4,596
Total	$	465,689	$	20,142	$	5,450	$	98,189	$	589,470