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LOANS (Tables)
 6 Months Ended
Jun. 30, 2019
Loans and Leases Receivable Disclosure [Line Items]  
Loans Receivable, Net The balances of these classes are summarized as follows:

(000's omitted)
  
June 30,
2019
    
December 31,
2018
  
Business lending
  
$
2,395,684
    
$
2,396,977
  
Consumer mortgage
    
2,255,782
      
2,235,408
  
Consumer indirect
    
1,082,834
      
1,083,207
  
Consumer direct
    
178,151
      
178,820
  
Home equity
    
371,619
      
386,709
  
Gross loans, including deferred origination costs
    
6,284,070
      
6,281,121
  
Allowance for loan losses
    
(49,310
)
    
(49,284
)
Loans, net of allowance for loan losses
  
$
6,234,760
    
$
6,231,837
  
Accretable Discount Related to Credit Impaired Acquired Loans The outstanding balance related to credit impaired acquired loans was $5.6 million and $7.4 million at June 30, 2019 and December 31, 2018, respectively.  The changes in the accretable discount related to the credit impaired acquired loans are as follows:

(000’s omitted)
      
Balance at December 31, 2018
  
$
437
  
Accretion recognized, year-to-date
    
(133
)
Net reclassification between accretable and non-accretable
    
76
  
Balance at June 30, 2019
  
$
380
  
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
  
$
4,258
    
$
491
    
$
4,086
    
$
8,835
    
$
1,669,769
    
$
1,678,604
  
Consumer mortgage
    
9,675
      
2,082
      
10,079
      
21,836
      
1,875,811
      
1,897,647
  
Consumer indirect
    
10,973
      
157
      
0
      
11,130
      
1,063,817
      
1,074,947
  
Consumer direct
    
1,117
      
27
      
0
      
1,144
      
174,732
      
175,876
  
Home equity
    
1,133
      
106
      
1,364
      
2,603
      
303,102
      
305,705
  
Total
  
$
27,156
    
$
2,863
    
$
15,529
    
$
45,548
    
$
5,087,231
    
$
5,132,779
  

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
  
$
1,019
    
$
0
    
$
3,294
    
$
4,313
    
$
3,647
    
$
709,120
    
$
717,080
  
Consumer mortgage
    
1,282
      
80
      
2,072
      
3,434
      
0
      
354,701
      
358,135
  
Consumer indirect
    
33
      
32
      
0
      
65
      
0
      
7,822
      
7,887
  
Consumer direct
    
40
      
4
      
0
      
44
      
0
      
2,231
      
2,275
  
Home equity
    
726
      
68
      
518
      
1,312
      
0
      
64,602
      
65,914
  
Total
  
$
3,100
    
$
184
    
$
5,884
    
$
9,168
    
$
3,647
    
$
1,138,476
    
$
1,151,291
  

(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, 2018:

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
  
$
5,261
    
$
179
    
$
4,872
    
$
10,312
    
$
1,608,515
    
$
1,618,827
  
Consumer mortgage
    
12,468
      
1,393
      
9,872
      
23,733
      
1,824,717
      
1,848,450
  
Consumer indirect
    
14,609
      
258
      
0
      
14,867
      
1,057,525
      
1,072,392
  
Consumer direct
    
1,778
      
48
      
0
      
1,826
      
173,948
      
175,774
  
Home equity
    
983
      
228
      
1,438
      
2,649
      
309,892
      
312,541
  
Total
  
$
35,099
    
$
2,106
    
$
16,182
    
$
53,387
    
$
4,974,597
    
$
5,027,984
  

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
  
$
974
    
$
0
    
$
3,498
    
$
4,472
    
$
5,446
    
$
768,232
    
$
778,150
  
Consumer mortgage
    
841
      
232
      
2,390
      
3,463
      
0
      
383,495
      
386,958
  
Consumer indirect
    
78
      
34
      
0
      
112
      
0
      
10,703
      
10,815
  
Consumer direct
    
115
      
4
      
0
      
119
      
0
      
2,927
      
3,046
  
Home equity
    
613
      
79
      
474
      
1,166
      
0
      
73,002
      
74,168
  
Total
  
$
2,621
    
$
349
    
$
6,362
    
$
9,332
    
$
5,446
    
$
1,238,359
    
$
1,253,137
  

(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.

Non-Business Impaired Loans All loan classes are collectively evaluated for impairment except business lending.  A summary of individually evaluated impaired loans as of June 30, 2019 and December 31, 2018 follows:

(000’s omitted)
  
June 30,
2019
    
December 31,
2018
  
Loans with allowance allocation
  
$
0
    
$
3,956
  
Loans without allowance allocation
    
5,096
      
2,230
  
Carrying balance
    
5,096
      
6,186
  
Contractual balance
    
12,021
      
12,078
  
Specifically allocated allowance
    
0
      
956
  
Troubled Debt Restructurings on Financing Receivables Information regarding TDRs as of June 30, 2019 and December 31, 2018 is as follows:


 
June 30, 2019
    
December 31, 2018
  
(000’s omitted)
  
Nonaccrual
    
Accruing
    
Total
    
Nonaccrual
    
Accruing
    
Total
  
     
#
    
Amount
      
#
    
Amount
      
#
    
Amount
      
#
    
Amount
      
#
    
Amount
      
#
    
Amount
  
Business lending
    
4
    
$
264
      
3
    
$
211
      
7
    
$
475
      
4
    
$
162
      
2
    
$
165
      
6
    
$
327
  
Consumer mortgage
    
51
      
2,334
      
48
      
1,853
      
99
      
4,187
      
46
      
1,986
      
46
      
1,769
      
92
      
3,755
  
Consumer indirect
    
0
      
0
      
75
      
786
      
75
      
786
      
0
      
0
      
77
      
857
      
77
      
857
  
Consumer direct
    
0
      
0
      
22
      
74
      
22
      
74
      
0
      
0
      
22
      
71
      
22
      
71
  
Home equity
    
14
      
243
      
11
      
316
      
25
      
559
      
12
      
240
      
9
      
275
      
21
      
515
  
Total
    
69
    
$
2,841
      
159
    
$
3,240
      
228
    
$
6,081
      
62
    
$
2,388
      
156
    
$
3,137
      
218
    
$
5,525
  

The following table presents information related to loans modified in a TDR during the three months and six months ended June 30, 2019 and 2018.  Of the loans noted in the table below, all loans for the three months and six months ended June 30, 2019 and 2018 were modified due to a Chapter 7 bankruptcy as described previously.  The financial effects of these restructurings were immaterial.


  
Three Months Ended
June 30, 2019
    
Three Months Ended
June 30, 2018
  
(000’s omitted)
  
Number of
loans modified
    
Outstanding
Balance
    
Number of
loans modified
    
Outstanding
Balance
  
Business lending
    
2
    
$
250
      
0
    
$
0
  
Consumer mortgage
    
4
      
283
      
4
      
452
  
Consumer indirect
    
4
      
33
      
8
      
70
  
Consumer direct
    
2
      
6
      
3
      
12
  
Home equity
    
3
      
71
      
1
      
86
  
Total
    
15
    
$
643
      
16
    
$
620
  


 
Six Months Ended
June 30, 2019
    
Six Months Ended
June 30, 2018
  
(000’s omitted)
  
Number of
loans modified
    
Outstanding
Balance
    
Number of
loans modified
    
Outstanding
Balance
  
Business lending
    
2
    
$
250
      
1
    
$
93
  
Consumer mortgage
    
11
      
861
      
4
      
452
  
Consumer indirect
    
12
      
98
      
11
      
92
  
Consumer direct
    
3
      
12
      
5
      
14
  
Home equity
    
4
      
75
      
1
      
86
  
Total
    
32
    
$
1,296
      
22
    
$
737
  
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 June 30, 2019
  
(000’s omitted)
  
Business
Lending
    
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Unallocated
    
Acquired
Impaired
    
Total
  
Beginning balance
  
$
18,271
    
$
10,317
    
$
14,251
    
$
3,056
    
$
2,067
    
$
990
    
$
155
    
$
49,107
  
Charge-offs
    
(253
)
    
(587
)
    
(1,482
)
    
(445
)
    
(104
)
    
0
      
0
      
(2,871
)
Recoveries
    
169
      
14
      
1,239
      
221
      
31
      
0
      
0
      
1,674
  
Provision
    
(418
)
    
1,019
      
337
      
352
      
109
      
1
      
0
      
1,400
  
Ending balance
  
$
17,769
    
$
10,763
    
$
14,345
    
$
3,184
    
$
2,103
    
$
991
    
$
155
    
$
49,310
  


 
Three Months Ended June 30, 2018
  
(000’s omitted)
  
Business
Lending
    
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Unallocated
    
Acquired
Impaired
    
Total
  
Beginning balance
  
$
17,607
    
$
10,382
    
$
13,698
    
$
2,984
    
$
2,040
    
$
1,084
    
$
308
    
$
48,103
  
Charge-offs
    
(260
)
    
(245
)
    
(1,383
)
    
(364
)
    
(47
)
    
0
      
(323
)
    
(2,622
)
Recoveries
    
114
      
54
      
1,347
      
167
      
7
      
0
      
0
      
1,689
  
Provision
    
978
      
282
      
762
      
377
      
15
      
(14
)
    
48
      
2,448
  
Ending balance
  
$
18,439
    
$
10,473
    
$
14,424
    
$
3,164
    
$
2,015
    
$
1,070
    
$
33
    
$
49,618
  


 
Six Months Ended June 30, 2019
  
(000’s omitted)
  
Business
Lending
    
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Unallocated
    
Acquired
Impaired
    
Total
  
Beginning balance
  
$
18,522
    
$
10,124
    
$
14,366
    
$
3,095
    
$
2,144
    
$
1,000
    
$
33
    
$
49,284
  
Charge-offs
    
(1,469
)
    
(840
)
    
(3,305
)
    
(980
)
    
(178
)
    
0
      
0
      
(6,772
)
Recoveries
    
303
      
36
      
2,201
      
400
      
36
      
0
      
0
      
2,976
  
Provision
    
413
      
1,443
      
1,083
      
669
      
101
      
(9
)
    
122
      
3,822
  
Ending balance
  
$
17,769
    
$
10,763
    
$
14,345
    
$
3,184
    
$
2,103
    
$
991
    
$
155
    
$
49,310
  


 
Six Months Ended June 30, 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
    
(1,928
)
    
(444
)
    
(3,667
)
    
(860
)
    
(103
)
    
0
      
(367
)
    
(7,369
)
Recoveries
    
312
      
62
      
2,498
      
389
      
16
      
0
      
0
      
3,277
  
Provision
    
2,798
      
390
      
2,125
      
596
      
(5
)
    
(30
)
    
253
      
6,127
  
Ending balance
  
$
18,439
    
$
10,473
    
$
14,424
    
$
3,164
    
$
2,015
    
$
1,070
    
$
33
    
$
49,618
  
Business Lending [Member]  
Loans and Leases Receivable Disclosure [Line Items]  
Loans by Credit Quality Indicator The following table shows the amount of business lending loans by credit quality category:


 
June 30, 2019
    
December 31, 2018
  
(000’s omitted)
  
Legacy
    
Acquired
    
Total
    
Legacy
    
Acquired
    
Total
  
Pass
  
$
1,510,549
    
$
626,321
    
$
2,136,870
    
$
1,439,337
    
$
702,493
    
$
2,141,830
  
Special mention
    
87,398
      
58,444
      
145,842
      
105,065
      
40,107
      
145,172
  
Classified
    
80,657
      
28,668
      
109,325
      
74,425
      
28,525
      
102,950
  
Doubtful
    
0
      
0
      
0
      
0
      
1,579
      
1,579
  
Acquired impaired
    
0
      
3,647
      
3,647
      
0
      
5,446
      
5,446
  
Total
  
$
1,678,604
    
$
717,080
    
$
2,395,684
    
$
1,618,827
    
$
778,150
    
$
2,396,977
  
All Other Loans [Member]  
Loans and Leases Receivable Disclosure [Line Items]  
Loans by Credit Quality Indicator All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis.  These are typically loans to individuals in the consumer categories and are delineated as either performing or nonperforming.   Performing loans include loans classified as current as well as those classified as 30 - 89 days past due.  Nonperforming loans include 90+ days past due and still accruing and nonaccrual loans. The following table details the balances in all other loan categories at June 30, 2019:

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

(000’s omitted)
  
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Total
  
Performing
  
$
1,885,486
    
$
1,074,790
    
$
175,849
    
$
304,235
    
$
3,440,360
  
Nonperforming
    
12,161
      
157
      
27
      
1,470
      
13,815
  
Total
  
$
1,897,647
    
$
1,074,947
    
$
175,876
    
$
305,705
    
$
3,454,175
  

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

(000’s omitted)
  
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Total
  
Performing
  
$
355,983
    
$
7,855
    
$
2,271
    
$
65,328
    
$
431,437
  
Nonperforming
    
2,152
      
32
      
4
      
586
      
2,774
  
Total
  
$
358,135
    
$
7,887
    
$
2,275
    
$
65,914
    
$
434,211
  

The following table details the balances in all other loan categories at December 31, 2018:

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

(000’s omitted)
  
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Total
  
Performing
  
$
1,837,185
    
$
1,072,134
    
$
175,726
    
$
310,875
    
$
3,395,920
  
Nonperforming
    
11,265
      
258
      
48
      
1,666
      
13,237
  
Total
  
$
1,848,450
    
$
1,072,392
    
$
175,774
    
$
312,541
    
$
3,409,157
  

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

(000’s omitted)
  
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Total
  
Performing
  
$
384,336
    
$
10,781
    
$
3,042
    
$
73,615
    
$
471,774
  
Nonperforming
    
2,622
      
34
      
4
      
553
      
3,213
  
Total
  
$
386,958
    
$
10,815
    
$
3,046
    
$
74,168
    
$
474,987