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LOANS (Tables)
 3 Months Ended
Mar. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]  
Loans Receivable, Net
The segments of the Company’s loan portfolio are summarized as follows:

(000's omitted)
  
March 31,
2020
    
December 31,
2019
  
Business lending
  
$
2,789,130
    
$
2,775,876
  
Consumer mortgage
    
2,424,656
      
2,430,902
  
Consumer indirect
    
1,087,879
      
1,113,062
  
Consumer direct
    
177,844
      
184,378
  
Home equity
    
386,583
      
386,325
  
Gross loans, including deferred origination costs
    
6,866,092
      
6,890,543
  
Allowance for credit losses
    
(55,652
)
    
(49,911
)
Loans, net of allowance for credit losses
  
$
6,810,440
    
$
6,840,632
  
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, by class as of March 31, 2020:

(000’s omitted)
  
Past Due
30 – 89
Days
    
90+ Days Past
Due and
Still Accruing
    
Nonaccrual
    
Total
Past Due
    
Purchased Credit
Deteriorated
(“PCD”) (1)
    
Current
    
Total Loans
  
Business lending
  
$
13,157
    
$
10,111
    
$
4,394
    
$
27,662
    
$
9,781
    
$
2,751,687
    
$
2,789,130
  
Consumer mortgage
    
15,614
      
1,821
      
12,674
      
30,109
      
0
      
2,394,547
      
2,424,656
  
Consumer indirect
    
11,343
      
418
      
0
      
11,761
      
0
      
1,076,118
      
1,087,879
  
Consumer direct
    
1,197
      
62
      
52
      
1,311
      
0
      
176,533
      
177,844
  
Home equity
    
2,951
      
324
      
1,926
      
5,201
      
0
      
381,382
      
386,583
  
Total
  
$
44,262
    
$
12,736
    
$
19,046
    
$
76,044
    
$
9,781
    
$
6,780,267
    
$
6,866,092
  

(1)
PCD loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 326-10. As a result, the noncredit discount, after the adjustment for the allowance for credit losses, is being accreted into interest income on all PCD loans.

The following is an aged analysis of the Company’s past due loans by class as of December 31, 2019:

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
  
$
3,936
    
$
126
    
$
3,840
    
$
7,902
    
$
1,848,683
    
$
1,856,585
  
Consumer mortgage
    
10,990
      
2,052
      
10,131
      
23,173
      
1,973,543
      
1,996,716
  
Consumer indirect
    
12,673
      
125
      
0
      
12,798
      
1,094,510
      
1,107,308
  
Consumer direct
    
1,455
      
76
      
0
      
1,531
      
174,445
      
175,976
  
Home equity
    
1,508
      
328
      
1,444
      
3,280
      
310,727
      
314,007
  
Total
  
$
30,562
    
$
2,707
    
$
15,415
    
$
48,684
    
$
5,401,908
    
$
5,450,592
  

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
  
$
8,518
    
$
2,173
    
$
570
    
$
11,261
    
$
11,797
    
$
896,233
    
$
919,291
  
Consumer mortgage
    
890
      
277
      
2,386
      
3,553
      
0
      
430,633
      
434,186
  
Consumer indirect
    
79
      
31
      
0
      
110
      
0
      
5,644
      
5,754
  
Consumer direct
    
59
      
0
      
52
      
111
      
0
      
8,291
      
8,402
  
Home equity
    
744
      
238
      
412
      
1,394
      
0
      
70,924
      
72,318
  
Total
  
$
10,290
    
$
2,719
    
$
3,420
    
$
16,429
    
$
11,797
    
$
1,411,725
    
$
1,439,951
  

(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 business loans as of March 31, 2020 and December 31, 2019 follows:

(000’s omitted)
  
March 31,
2020
    
December 31,
2019
  
Loans with allowance allocation
  
$
0
    
$
0
  
Loans without allowance allocation
    
1,771
      
1,414
  
Carrying balance
    
1,771
      
1,414
  
Contractual balance
    
3,305
      
2,944
  
Specifically allocated allowance
    
0
      
0
  
Troubled Debt Restructurings on Financing Receivables
Information regarding TDRs as of March 31, 2020 and December 31, 2019 is as follows:

  
March 31, 2020
    
December 31, 2019
  
(000’s omitted)
  
Nonaccrual
    
Accruing
    
Total
    
Nonaccrual
    
Accruing
    
Total
  
     
#
    
Amount
      
#
    
Amount
      
#
    
Amount
      
#
    
Amount
      
#
    
Amount
      
#
    
Amount
  
Business lending
    
8
    
$
644
      
3
    
$
197
      
11
    
$
841
      
8
    
$
681
      
3
    
$
201
      
11
    
$
882
  
Consumer mortgage
    
60
      
2,646
      
47
      
2,160
      
107
      
4,806
      
59
      
2,638
      
47
      
1,892
      
106
      
4,530
  
Consumer indirect
    
0
      
0
      
89
      
935
      
89
      
935
      
0
      
0
      
84
      
941
      
84
      
941
  
Consumer direct
    
0
      
0
      
23
      
106
      
23
      
106
      
0
      
0
      
23
      
101
      
23
      
101
  
Home equity
    
13
      
298
      
11
      
233
      
24
      
531
      
13
      
290
      
11
      
238
      
24
      
528
  
Total
    
81
    
$
3,588
      
173
    
$
3,631
      
254
    
$
7,219
      
80
    
$
3,609
      
168
    
$
3,373
      
248
    
$
6,982
  


The following table presents information related to loans modified in a TDR during the three months ended March 31, 2020 and 2019.  Of the loans noted in the table below, all consumer mortgage loans for the three months ended March 31, 2020 and 2019 were modified due to a Chapter 7 bankruptcy as described previously.  The financial effects of these restructurings were immaterial

  
Three Months Ended
March 31, 2020
    
Three Months Ended
March 31, 2019
  
(000’s omitted)
  
Number of
loans modified
    
Outstanding
Balance
    
Number of
loans modified
    
Outstanding
Balance
  
Business lending
    
0
    
$
0
      
0
    
$
0
  
Consumer mortgage
    
7
      
617
      
8
      
665
  
Consumer indirect
    
14
      
127
      
11
      
98
  
Consumer direct
    
1
      
12
      
0
      
0
  
Home equity
    
0
      
0
      
1
      
4
  
Total
    
22
    
$
756
      
20
    
$
767
  
Allowance for Loan Losses by Class
The following presents by segment the activity in the allowance for credit losses:

  
Three Months Ended March 31, 2020
  
(000’s omitted)
  
Beginning
balance,
prior to
the
adoption
of ASC 326
    
Impact
of ASC
326
    
Beginning
balance,
after
adoption
of ASC 326
    
Charge-offs
    
Recoveries
    
Provision
    
Ending balance
  
Business lending
  
$
19,426
    
$
288
    
$
19,714
    
$
(176
)
  
$
138
    
$
(187
)
  
$
19,489
  
Consumer mortgage
    
10,269
      
(1,051
)
    
9,218
      
(186
)
    
8
      
3,390
      
12,430
  
Consumer indirect
    
13,712
      
(997
)
    
12,715
      
(2,079
)
    
1,163
      
1,895
      
13,694
  
Consumer direct
    
3,255
      
(643
)
    
2,612
      
(533
)
    
182
      
1,476
      
3,737
  
Home equity
    
2,129
      
808
      
2,937
      
(73
)
    
6
      
(386
)
    
2,484
  
Unallocated
    
957
      
43
      
1,000
      
0
      
0
      
(228
)
    
772
  
Purchased credit deteriorated
    
0
      
3,072
      
3,072
      
0
      
0
      
(26
)
    
3,046
  
Purchased credit impaired
    
163
      
(163
)
    
0
      
0
      
0
      
0
      
0
  
Allowance for credit losses – loans
    
49,911
      
1,357
      
51,268
      
(3,047
)
    
1,497
      
5,934
      
55,652
  
Liabilities for off-balance-sheet credit exposures
    
0
      
1,185
      
1,185
      
0
      
0
      
(340
)
    
845
  
Total allowance for credit losses
  
$
49,911
    
$
2,542
    
$
52,453
    
$
(3,047
)
  
$
1,497
    
$
5,594
    
$
56,497
  

 
Three Months Ended March 31, 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
    
(1,216
)
    
(253
)
    
(1,823
)
    
(535
)
    
(74
)
    
0
      
0
      
(3,901
)
Recoveries
    
134
      
22
      
962
      
179
      
5
      
0
      
0
      
1,302
  
Provision
    
831
      
424
      
746
      
317
      
(8
)
    
(10
)
    
122
      
2,422
  
Ending balance
  
$
18,271
    
$
10,317
    
$
14,251
    
$
3,056
    
$
2,067
    
$
990
    
$
155
    
$
49,107
  
Business Lending [Member]  
Loans and Leases Receivable Disclosure [Line Items]  
Loans by Credit Quality Indicator
The following tables show the amount of business lending loans by credit quality category at March 31, 2020 and December 31, 2019:

(000’s omitted)
  
Term Loans Amortized Cost Basis by Origination Year
              
March 31, 2020
  
2020
    
2019
    
2018
    
2017
    
2016
    
Prior
    
Revolving
Loans
Amortized
Cost Basis
    
Total
  
Business lending:
                                                
Risk rating
                                                
Pass
  
$
81,301
    
$
386,281
    
$
333,585
    
$
239,020
    
$
276,171
    
$
606,390
    
$
593,830
    
$
2,516,578
  
Special mention
    
4,128
      
12,290
      
6,887
      
13,213
      
4,516
      
52,457
      
31,223
      
124,714
  
Classified
    
665
      
1,933
      
17,241
      
9,993
      
12,790
      
59,750
      
45,466
      
147,838
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total business lending
  
$
86,094
    
$
400,504
    
$
357,713
    
$
262,226
    
$
293,477
    
$
718,597
    
$
670,519
    
$
2,789,130
  

 
December 31, 2019
  
(000’s omitted)
  
Legacy
    
Acquired
    
Total
  
Pass
  
$
1,655,280
    
$
832,693
    
$
2,487,973
  
Special mention
    
98,953
      
45,324
      
144,277
  
Classified
    
102,352
      
29,477
      
131,829
  
Doubtful
    
0
      
0
      
0
  
Acquired impaired
    
0
      
11,797
      
11,797
  
Total
  
$
1,856,585
    
$
919,291
    
$
2,775,876
  
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 March 31, 2020:

(000’s omitted)
  
Term Loans Amortized Cost Basis by Origination Year
              
March 31, 2020
  
2020
    
2019
    
2018
    
2017
    
2016
    
Prior
    
Revolving
Loans
Amortized
Cost Basis
    
Total
  
Consumer mortgage:
                                                
FICO AB
                                                
Risk rating
                                                
Performing
  
$
47,527
    
$
252,841
    
$
194,612
    
$
190,316
    
$
187,254
    
$
651,314
    
$
0
    
$
1,523,864
  
Nonperforming
    
0
      
0
      
153
      
299
      
193
      
2,862
      
0
      
3,507
  
Total FICO AB
    
47,527
      
252,841
      
194,765
      
190,615
      
187,447
      
654,176
      
0
      
1,527,371
  
                                                                 
FICO CDE
                                                                
Risk rating
                                                                
Performing
    
22,589
      
111,126
      
89,451
      
88,630
      
94,419
      
467,433
      
12,649
      
886,297
  
Nonperforming
    
0
      
0
      
142
      
524
      
1,327
      
8,995
      
0
      
10,988
  
Total FICO CDE
    
22,589
      
111,126
      
89,593
      
89,154
      
95,746
      
476,428
      
12,649
      
897,285
  
Total consumer mortgage
  
$
70,116
    
$
363,967
    
$
284,358
    
$
279,769
    
$
283,193
    
$
1,130,604
    
$
12,649
    
$
2,424,656
  
                                                                 
Consumer indirect:
                                                                
Risk rating
                                                                
Performing
  
$
74,581
    
$
397,442
    
$
284,899
    
$
133,402
    
$
102,849
    
$
94,288
    
$
0
    
$
1,087,461
  
Nonperforming
    
0
      
98
      
78
      
63
      
99
      
80
      
0
      
418
  
Total consumer indirect
  
$
74,581
    
$
397,540
    
$
284,977
    
$
133,465
    
$
102,948
    
$
94,368
      
0
    
$
1,087,879
  
                                                                 
Consumer direct:
                                                                
Risk rating
                                                                
Performing
  
$
20,080
    
$
66,306
    
$
42,399
    
$
21,144
    
$
11,049
    
$
9,121
    
$
7,631
    
$
177,730
  
Nonperforming
    
0
      
14
      
1
      
66
      
3
      
0
      
30
      
114
  
Total consumer direct
  
$
20,080
    
$
66,320
    
$
42,400
    
$
21,210
    
$
11,052
    
$
9,121
    
$
7,661
    
$
177,844
  
                                                                 
Home equity:
                                                                
Risk rating
                                                                
Performing
  
$
14,521
    
$
51,149
    
$
28,687
    
$
23,194
    
$
19,318
    
$
35,395
    
$
212,069
    
$
384,333
  
Nonperforming
    
0
      
0
      
0
      
73
      
118
      
461
      
1,598
      
2,250
  
Total home equity
  
$
14,521
    
$
51,149
    
$
28,687
    
$
23,267
    
$
19,436
    
$
35,856
    
$
213,667
    
$
386,583
  

The following table details the balances in all other loan categories at December 31, 2019:

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

(000’s omitted)
  
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Total
  
Performing
  
$
1,984,533
    
$
1,107,183
    
$
175,900
    
$
312,235
    
$
3,579,851
  
Nonperforming
    
12,183
      
125
      
76
      
1,772
      
14,156
  
Total
  
$
1,996,716
    
$
1,107,308
    
$
175,976
    
$
314,007
    
$
3,594,007
  

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

(000’s omitted)
  
Consumer
Mortgage
    
Consumer
Indirect
    
Consumer
Direct
    
Home
Equity
    
Total
  
Performing
  
$
431,523
    
$
5,723
    
$
8,350
    
$
71,668
    
$
517,264
  
Nonperforming
    
2,663
      
31
      
52
      
650
      
3,396
  
Total
  
$
434,186
    
$
5,754
    
$
8,402
    
$
72,318
    
$
520,660