LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

12 Months Ended

Dec. 31, 2022

Loans

Schedule of loans receivable, net

(000’s omitted)	2022		2021
Business lending	$	3,645,665	$	3,075,904
Consumer mortgage		3,012,475		2,556,114
Consumer indirect		1,539,653		1,189,749
Consumer direct		177,605		153,811
Home equity		433,996		398,061
Gross loans, including deferred origination costs		8,809,394		7,373,639
Allowance for credit losses		(61,059)		(49,869)
Loans, net of allowance for credit losses	$	8,748,335	$	7,323,770

Schedule of aggregate amounts loaned to related parties

(000’s omitted)	2022		2021
Balance at beginning of year	$	13,773	$	15,549
New loans		2,025		2,500
Payments		(3,425)		(4,276)
Balance at end of year	$	12,373	$	13,773

Schedule of aged analysis of past due loans by class

	Past Due		90+ Days Past
(000’s omitted)	30 – 89		Due and				Total
December 31, 2022	Days		Still Accruing		Nonaccrual		Past Due		Current		Total Loans
Business lending	$	9,818	$	0	$	4,689	$	14,507	$	3,631,158	$	3,645,665
Consumer mortgage		13,757		3,510		22,583		39,850		2,972,625		3,012,475
Consumer indirect		16,767		178		0		16,945		1,522,708		1,539,653
Consumer direct		1,307		132		28		1,467		176,138		177,605
Home equity		3,595		299		1,945		5,839		428,157		433,996
Total	$	45,244	$	4,119	$	29,245	$	78,608	$	8,730,786	$	8,809,394

	Past Due		90+ Days Past
(000’s omitted)	30 – 89		Due and				Total
December 31, 2021	Days		Still Accruing		Nonaccrual		Past Due		Current		Total Loans
Business lending	$	5,540	$	99	$	24,105	$	29,744	$	3,046,160	$	3,075,904
Consumer mortgage		10,297		3,328		15,027		28,652		2,527,462		2,556,114
Consumer indirect		9,611		87		0		9,698		1,180,051		1,189,749
Consumer direct		796		22		1		819		152,992		153,811
Home equity		1,778		272		2,532		4,582		393,479		398,061
Total	$	28,022	$	3,808	$	41,665	$	73,495	$	7,300,144	$	7,373,639

Schedule of non-business individually assessed loans

	December 31,		December 31,
(000’s omitted)	2022		2021
Loans with allowance allocation	$	0	$	7,102
Loans without allowance allocation		3,163		7,417
Carrying balance		3,163		14,519
Contractual balance		4,201		16,963
Specifically allocated allowance		0		566

Schedule of troubled debt restructurings on financing receivables

	December 31, 2022
	Nonaccrual			Accruing			Total
(000’s omitted)	#	Amount		#	Amount		#	Amount
Business lending	1	$	135	3	$	271	4	$	406
Consumer mortgage	52		2,218	46		2,114	98		4,332
Consumer indirect	0		0	56		600	56		600
Consumer direct	0		0	18		5	18		5
Home equity	9		108	9		178	18		286
Total	62	$	2,461	132	$	3,168	194	$	5,629

	December 31, 2021
	Nonaccrual			Accruing			Total
(000’s omitted)	#	Amount		#	Amount		#	Amount
Business lending	10	$	1,011	4	$	811	14	$	1,822
Consumer mortgage	61		2,694	47		2,420	108		5,114
Consumer indirect	0		0	72		829	72		829
Consumer direct	0		0	16		7	16		7
Home equity	10		235	12		232	22		467
Total	81	$	3,940	151	$	4,299	232	$	8,239

	December 31, 2020
	Nonaccrual			Accruing			Total
(000’s omitted)	#	Amount		#	Amount		#	Amount
Business lending	6	$	529	4	$	191	10	$	720
Consumer mortgage	56		2,413	48		2,266	104		4,679
Consumer indirect	0		0	86		951	86		951
Consumer direct	0		0	23		85	23		85
Home equity	11		285	13		264	24		549
Total	73	$	3,227	174	$	3,757	247	$	6,984

	December 31, 2022			December 31, 2021			December 31, 2020
(000’s omitted)	#	Amount		#	Amount		#	Amount
Business lending	0	$	0	5	$	1,371	1	$	4
Consumer mortgage	7		597	24		1,425	17		1,339
Consumer indirect	13		178	23		284	31		333
Consumer direct	3		5	2		7	3		10
Home equity	1		4	0		0	3		70
Total	24	$	784	54	$	3,087	55	$	1,756

Schedule of allowance for loan losses by class

	Year Ended December 31, 2022
							PCD
	Beginning		Charge-				Allowance at				Ending
(000’s omitted)	balance		offs		Recoveries		Acquisition		Provision		balance
Business lending	$	22,995	$	(824)	$	1,374	$	71	$	(319)	$	23,297
Consumer mortgage		10,017		(313)		62		0		4,577		14,343
Consumer indirect		11,737		(7,986)		4,756		0		9,345		17,852
Consumer direct		2,306		(1,252)		772		0		1,147		2,973
Home equity		1,814		(86)		163		0		(297)		1,594
Unallocated		1,000		0		0		0		0		1,000
Allowance for credit losses – loans		49,869		(10,461)		7,127		71		14,453		61,059
Liabilities for off-balance-sheet credit exposures		803		0		0		0		320		1,123
Total allowance for credit losses	$	50,672	$	(10,461)	$	7,127	$	71	$	14,773	$	62,182

	Year Ended December 31, 2021
	Beginning		Charge-						Ending
(000’s omitted)	balance		offs		Recoveries		Provision		balance
Business lending	$	30,072	$	(1,922)	$	796	$	(5,951)	$	22,995
Consumer mortgage		10,672		(426)		91		(320)		10,017
Consumer indirect		13,696		(5,160)		4,346		(1,145)		11,737
Consumer direct		3,207		(1,232)		793		(462)		2,306
Home equity		2,222		(225)		92		(275)		1,814
Unallocated		1,000		0		0		0		1,000
Allowance for credit losses – loans		60,869		(8,965)		6,118		(8,153)		49,869
Liabilities for off-balance-sheet credit exposures		1,489		0		0		(686)		803
Total allowance for credit losses	$	62,358	$	(8,965)	$	6,118	$	(8,839)	$	50,672

	Year Ended December 31, 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	$	3,360	$	22,786	$	(1,588)	$	796	$	3,011	$	5,067	$	30,072
Consumer mortgage		10,269		(1,051)		9,218		(862)		130		146		2,040		10,672
Consumer indirect		13,712		(997)		12,715		(6,382)		3,992		183		3,188		13,696
Consumer direct		3,255		(643)		2,612		(1,633)		743		87		1,398		3,207
Home equity		2,129		808		2,937		(199)		28		235		(779)		2,222
Unallocated		957		43		1,000		0		0		0		0		1,000
Acquired impaired		163		(163)		0		0		0		0		0		0
Allowance for credit losses – loans		49,911		1,357		51,268		(10,664)		5,689		3,662		10,914		60,869
Liabilities for off-balance-sheet credit exposures		0		1,185		1,185		0		0		67		237		1,489
Total allowance for credit losses	$	49,911	$	2,542	$	52,453	$	(10,664)	$	5,689	$	3,729	$	11,151	$	62,358

Schedule of financing receivables purchased and Sold

The following table presents the carrying amounts of loans purchased and sold during the year ended December 31, 2022 by portfolio segment:

(000’s	Business		Consumer		Consumer		Consumer		Home
omitted)	lending		mortgage		indirect		direct		equity		Total
Purchases	$	125,288	$	271,408	$	9,383	$	12,511	$	18,429	$	437,019
Sales		0		5,309		0		0		0		5,309

Business Lending

Loans

Schedule of loans by credit quality indicator

	Term Loans Amortized Cost Basis by Origination Year
													Revolving		Revolving
													Loans		Loans
(000’s omitted)													Amortized		Converted to
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Term		Total
Business lending:
Risk rating
Pass	$	747,570	$	373,914	$	232,591	$	246,817	$	168,423	$	604,746	$	711,629	$	336,722	$	3,422,412
Special mention		2,787		4,836		3,781		3,676		14,593		45,627		29,403		29,975		134,678
Classified		1,800		775		1,138		3,196		12,235		38,138		10,587		20,706		88,575
Doubtful		0		0		0		0		0		0		0		0		0
Total business lending	$	752,157	$	379,525	$	237,510	$	253,689	$	195,251	$	688,511	$	751,619	$	387,403	$	3,645,665

	Term Loans Amortized Cost Basis by Origination Year
													Revolving		Revolving
													Loans		Loans
(000’s omitted)													Amortized		Converted to
December 31, 2021	2021		2020		2019		2018		2017		Prior		Cost Basis		Term		Total
Business lending:
Risk rating
Pass	$	517,302	$	286,386	$	265,551	$	204,376	$	152,440	$	544,577	$	460,461	$	286,446	$	2,717,539
Special mention		5,969		10,638		9,738		18,702		7,972		54,367		26,609		46,518		180,513
Classified		1,870		1,414		3,571		16,729		18,982		56,538		26,780		51,403		177,287
Doubtful		0		0		0		62		0		0		503		0		565
Total business lending	$	525,141	$	298,438	$	278,860	$	239,869	$	179,394	$	655,482	$	514,353	$	384,367	$	3,075,904

All Other Loans

Loans

Schedule of loans by credit quality indicator

	Term Loans Amortized Cost Basis by Origination Year
													Revolving		Revolving
													Loans		Loans
(000’s omitted)													Amortized		Converted to
December 31, 2022	2022		2021		2020		2019		2018		Prior		Cost Basis		Term		Total
Consumer mortgage:
FICO AB(1)
Performing	$	379,171	$	492,731	$	217,889	$	173,942	$	100,161	$	604,258	$	954	$	58,639	$	2,027,745
Nonperforming		0		75		573		184		399		4,347		0		449		6,027
Total FICO AB		379,171		492,806		218,462		174,126		100,560		608,605		954		59,088		2,033,772
FICO CDE(2)
Performing		160,388		178,262		112,640		79,357		54,861		323,189		27,884		22,056		958,637
Nonperforming		120		974		1,250		1,606		2,127		13,177		151		661		20,066
Total FICO CDE		160,508		179,236		113,890		80,963		56,988		336,366		28,035		22,717		978,703
Total consumer mortgage	$	539,679	$	672,042	$	332,352	$	255,089	$	157,548	$	944,971	$	28,989	$	81,805	$	3,012,475
Consumer indirect:
Performing	$	777,513	$	422,594	$	129,449	$	99,593	$	52,298	$	58,028	$	0	$	0	$	1,539,475
Nonperforming		18		1		53		67		15		24		0		0		178
Total consumer indirect	$	777,531	$	422,595	$	129,502	$	99,660	$	52,313	$	58,052	$	0	$	0	$	1,539,653
Consumer direct:
Performing	$	84,111	$	46,381	$	17,066	$	12,729	$	5,573	$	5,020	$	6,563	$	2	$	177,445
Nonperforming		6		51		1		1		29		50		22		0		160
Total consumer direct	$	84,117	$	46,432	$	17,067	$	12,730	$	5,602	$	5,070	$	6,585	$	2	$	177,605
Home equity:
Performing	$	69,575	$	72,270	$	37,964	$	31,506	$	16,068	$	41,097	$	132,703	$	30,569	$	431,752
Nonperforming		0		10		114		169		105		606		563		677		2,244
Total home equity	$	69,575	$	72,280	$	38,078	$	31,675	$	16,173	$	41,703	$	133,266	$	31,246	$	433,996

(1) FICO AB refers to higher tiered loans with FICO scores greater than or equal to 720 at origination.

(2) FICO CDE refers to loans with FICO scores less than 720 at origination and potentially higher risk.

	Term Loans Amortized Cost Basis by Origination Year
													Revolving		Revolving
													Loans		Loans
(000’s omitted)													Amortized		Converted to
December 31, 2021	2021		2020		2019		2018		2017		Prior		Cost Basis		Term		Total
Consumer mortgage:
FICO AB(1)
Performing	$	496,372	$	220,171	$	178,589	$	113,505	$	116,417	$	566,123	$	0	$	32,175	$	1,723,352
Nonperforming		0		266		0		131		435		3,236		0		0		4,068
Total FICO AB		496,372		220,437		178,589		113,636		116,852		569,359		0		32,175		1,727,420
FICO CDE(2)
Performing		162,995		117,566		81,377		57,973		54,396		300,350		25,028		14,722		814,407
Nonperforming		0		522		972		1,465		939		10,389		0		0		14,287
Total FICO CDE		162,995		118,088		82,349		59,438		55,335		310,739		25,028		14,722		828,694
Total consumer mortgage	$	659,367	$	338,525	$	260,938	$	173,074	$	172,187	$	880,098	$	25,028	$	46,897	$	2,556,114
Consumer indirect:
Performing	$	590,857	$	204,529	$	182,458	$	107,683	$	39,385	$	64,750	$	0	$	0	$	1,189,662
Nonperforming		0		34		0		24		17		12		0		0		87
Total consumer indirect	$	590,857	$	204,563	$	182,458	$	107,707	$	39,402	$	64,762	$	0	$	0	$	1,189,749
Consumer direct:
Performing	$	72,584	$	28,905	$	24,768	$	12,340	$	4,396	$	4,577	$	6,214	$	4	$	153,788
Nonperforming		0		4		18		1		0		0		0		0		23
Total consumer direct	$	72,584	$	28,909	$	24,786	$	12,341	$	4,396	$	4,577	$	6,214	$	4	$	153,811
Home equity:
Performing	$	76,041	$	43,106	$	35,990	$	18,824	$	15,134	$	35,740	$	131,817	$	38,605	$	395,257
Nonperforming		0		64		47		102		131		679		953		828		2,804
Total home equity	$	76,041	$	43,170	$	36,037	$	18,926	$	15,265	$	36,419	$	132,770	$	39,433	$	398,061

(1) FICO AB refers to higher tiered loans with FICO scores greater than or equal to 720 at origination.

(2) FICO CDE refers to loans with FICO scores less than 720 at origination and potentially higher risk.