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Allowance for Loan and Lease Losses (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Schedule of originated and acquired loan and lease losses by portfolio segment
Changes in the allowance for loan and lease losses for the twelve months ended December 31, 2019, 2018 and 2017 are summarized as follows:
(In thousands)
2019
 
2018
 
2017
Total allowance at beginning of year
$
43,410

 
$
39,771

 
$
35,755

Provisions charged to operations
1,366

 
3,942

 
4,161

Recoveries on loans and leases
906

 
2,137

 
2,429

Charge-offs on loans and leases
(5,790
)
 
(2,440
)
 
(2,574
)
Total allowance at end of year
$
39,892

 
$
43,410

 
$
39,771

 
The following tables detail activity in the allowance for originated and acquired loan and lease losses by portfolio segment for the twelve months ended December 31, 2019 and 2018.  
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Allowance for originated loans and leases:
 
 
 
 
 
 
 
 
Beginning balance
$
11,217

 
$
23,483

 
$
7,317

 
$
1,304

 
$
0

 
$
43,321

Charge-offs
(653
)
 
(4,013
)
 
(90
)
 
(816
)
 
0

 
(5,572
)
Recoveries
70

 
100

 
283

 
294

 
0

 
747

Provision
(93
)
 
1,987

 
(1,150
)
 
574

 
0

 
1,318

Ending Balance
$
10,541

 
$
21,557

 
$
6,360

 
$
1,356

 
$
0

 
$
39,814

 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Allowance for acquired loans:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
55

 
$
0

 
$
28

 
$
6

 
$
0

 
$
89

Charge-offs
(43
)
 
(2
)
 
(166
)
 
(7
)
 
0

 
(218
)
Recoveries
33

 
74

 
51

 
1

 
0

 
159

Provision
(45
)
 
(21
)
 
108

 
6

 
0

 
48

Ending Balance
$
0

 
$
51

 
$
21

 
$
6

 
$
0

 
$
78

 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Allowance for originated loans and leases:
 
 
 
 
 
 
 
 
Beginning balance
$
11,812

 
$
20,412

 
$
6,161

 
$
1,301

 
$
0

 
$
39,686

Charge-offs
(293
)
 
(60
)
 
(424
)
 
(1,350
)
 
0

 
(2,127
)
Recoveries
50

 
812

 
324

 
679

 
0

 
1,865

Provision
(352
)
 
2,319

 
1,256

 
674

 
0

 
3,897

Ending Balance
$
11,217

 
$
23,483

 
$
7,317

 
$
1,304

 
$
0

 
$
43,321

 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Allowance for acquired loans:
 
 
 
 
 
 
 
 
Beginning balance
$
25

 
$
0

 
$
54

 
$
6

 
$
0

 
$
85

Charge-offs
(41
)
 
(82
)
 
(190
)
 
0

 
0

 
(313
)
Recoveries
106

 
31

 
135

 
0

 
0

 
272

Provision
(35
)
 
51

 
29

 
0

 
0

 
45

Ending Balance
$
55

 
$
0

 
$
28

 
$
6

 
$
0

 
$
89
Schedule of the allowance for loan and lease losses based on impairment methodology
At December 31, 2019 and 2018, the allocation of the allowance for loan and lease losses summarized on the basis of the Company’s impairment methodology was as follows:
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Allowance for originated loans and leases:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
245

 
$
662

 
$
0

 
$
0

 
$
0

 
$
907

Collectively evaluated for impairment
10,296

 
20,895

 
6,360

 
1,356

 
0

 
38,907

Ending balance
$
10,541

 
$
21,557

 
$
6,360

 
$
1,356

 
$
0

 
$
39,814

Allowance for acquired loans:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Collectively evaluated for impairment
0

 
51

 
21

 
6

 
0

 
78

Ending balance
$
0

 
$
51

 
$
21

 
$
6

 
$
0

 
$
78

 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Allowance for originated loans and leases:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
397

 
$
3,365

 
$
0

 
$
0

 
$
0

 
$
3,762

Collectively evaluated for impairment
10,820

 
20,118

 
7,317

 
1,304

 
0

 
39,559

Ending balance
$
11,217

 
$
23,483

 
$
7,317

 
$
1,304

 
$
0

 
$
43,321

Allowance for acquired loans:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Collectively evaluated for impairment
55

 
0

 
28

 
6

 
0

 
89

Ending balance
$
55

 
$
0

 
$
28

 
$
6

 
$
0

 
$
89
Schedule of recorded investment in loans and leases impairment methodology
The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology as of December 31, 2019 and December 31, 2018 was as follows:
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Originated loans and leases:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
2,110

 
$
13,496

 
$
3,779

 
$
0

 
$
0

 
$
19,385

Collectively evaluated for impairment
966,875

 
2,283,152

 
1,340,687

 
73,625

 
17,322

 
4,681,661

Total
$
968,985

 
$
2,296,648

 
$
1,344,466

 
$
73,625

 
$
17,322

 
$
4,701,046


December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Acquired loans:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
2

 
$
714

 
$
2,114

 
$
0

 
$
0

 
$
2,830

Loans acquired with deteriorated credit quality
173

 
5,674

 
3,302

 
0

 
0

 
9,149

Collectively evaluated for impairment
38,901

 
140,529

 
27,955

 
785

 
0

 
208,170

Total
$
39,076

 
$
146,917

 
$
33,371

 
$
785

 
$
0

 
$
220,149

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Originated loans and leases:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,864

 
$
8,388

 
$
3,915

 
$
0

 
$
0

 
$
14,167

Collectively evaluated for impairment
1,032,059

 
2,153,181

 
1,288,346

 
70,228

 
14,556

 
4,558,370

Total
$
1,033,923

 
$
2,161,569

 
$
1,292,261

 
$
70,228

 
$
14,556

 
$
4,572,537

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer and Other
 
Finance Leases
 
Total
Acquired loans:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
32

 
$
842

 
$
2,564

 
$
0

 
$
0

 
$
3,438

Loans acquired with deteriorated credit quality
153

 
5,852

 
5,031

 
0

 
0

 
11,036

Collectively evaluated for impairment
43,527

 
172,398

 
34,038

 
761

 
0

 
250,724

Total
$
43,712

 
$
179,092

 
$
41,633

 
$
761

 
$
0

 
$
265,198
Schedule of recorded investments in impaired loans
The recorded investment on impaired loans as of December 31, 2019, and 2018 was as follows:
 
December 31, 2019
 
December 31, 2018
(In thousands)
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
Originated loans and leases with no related allowance
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial other
$
1,865

 
$
1,965

 
$
0

 
$
183

 
$
271

 
$
0

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate other
10,205

 
11,017

 
0

 
3,205

 
3,405

 
0

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Home equity
3,779

 
3,992

 
0

 
3,915

 
4,168

 
0

Subtotal
$
15,849

 
$
16,974

 
$
0

 
$
7,303

 
$
7,844

 
$
0

Originated loans and leases with related allowance
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial other
$
245

 
$
245

 
$
245

 
$
5,183

 
$
5,183

 
$
3,365

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate other
3,291

 
3,291

 
662

 
1,681

 
1,681

 
397

Subtotal
3,536

 
3,536

 
907

 
6,864

 
6,864

 
3,762

Total
$
19,385

 
$
20,510

 
$
907

 
$
14,167

 
$
14,708

 
$
3,762


 
December 31, 2019
 
December 31, 2018
(In thousands)
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
Acquired loans with no related allowance
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial other
$
2

 
$
2

 
$
0

 
$
32

 
$
32

 
$
0

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate other
714

 
714

 
0

 
842

 
924

 
0

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Home equity
2,114

 
2,217

 
0

 
2,564

 
2,696

 
0

Total
$
2,830

 
$
2,933

 
$
0

 
$
3,438

 
$
3,652

 
$
0

 
The average recorded investment and interest income recognized on impaired originated loans for the twelve months ended December 31, 2019, 2018, and 2017 was as follows:
Twelve Months Ended December 31,
 
2019
 
2018
 
2017
(In thousands)
Average Recorded Investment
 
Interest Income Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
Average Recorded Investment
 
Interest Income Recognized
Originated loans and leases with no related allowance
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial other
$
1,830

 
$
0

 
$
1,979

 
$
0

 
$
718

 
$
0

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate other
7,552

 
0

 
5,165

 
0

 
7,287

 
0

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Home equity
3,943

 
0

 
3,983

 
0

 
3,551

 
0

Subtotal
$
13,325

 
$
0

 
$
11,127

 
$
0

 
$
11,556

 
$
0

Originated loans and leases with related allowance
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial other
$
132

 
$
0

 
$
1,374

 
$
0

 
$
276

 
$
0

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate other
1,391

 
0

 
1,357

 
0

 
0

 
0

Subtotal
$
1,523

 
$
0

 
$
2,731

 
$
0

 
$
276

 
$
0

Total
$
14,848

 
$
0

 
$
13,858

 
$
0

 
$
11,832

 
$
0

 
The average recorded investment and interest income recognized on impaired acquired loans for the twelve months ended December 31, 2019, 2018 and 2017 was as follows:
Twelve Months Ended December 31,  
 
2019

2018

2017
(In thousands)
Average Recorded Investment
 
Interest Income Recognized
 
Average Recorded Investment
 
Interest Income Recognized
 
Average Recorded Investment
 
Interest Income Recognized
Acquired loans with no related allowance
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial other
$
21

 
$
0

 
$
50

 
$
0

 
$
111

 
$
0

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate other
822

 
0

 
999

 
0

 
2,141

 
0

Residential real estate
 
 
 
 
 
 
 
 
 
 
 
Home equity
2,503

 
0

 
2,945

 
0

 
1,861

 
0

Subtotal
$
3,346

 
$
0

 
$
3,994

 
$
0

 
$
4,113

 
$
0

Acquired loans with related allowance
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial other
$
0

 
$
0

 
$
0

 
$
0

 
$
10

 
$
0

Subtotal
$
0

 
$
0

 
$
0

 
$
0

 
$
10

 
$
0

Total
$
3,346

 
$
0

 
$
3,994

 
$
0

 
$
4,123

 
$
0
Schedule of troubled debt restructurings
The following tables present loans by class modified in 2019 and 2018 as troubled debt restructurings.
 
Troubled Debt Restructuring
December 31, 2019
Twelve months ended
 
 
 
 
 
 
 
Defaulted TDRs2
(In thousands)
Number
of Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Number
of Loans
 
Post-
Modification
Outstanding
Recorded
Investment
Commercial and industrial
 
 
 
 
 
 
 
 
 
Commercial and industrial other1
2

 
604

 
604

 
0

 
0

Commercial real estate
 
 
 
 
 
 
 
 
 
Commercial real estate other1
1

 
1,577

 
1,577

 
0

 
0

Residential real estate
 
 
 
 
 
 
 
 
 
Home equity1
2

 
$
181

 
$
181

 
1

 
$
93

Total
5

 
$
2,362

 
$
2,362

 
1

 
$
93

 
1Represents the following concessions: extension of term and reduction of rate.
2TDRs that defaulted during the 12 months ended December 31, 2019 that had been restructured in the prior twelve months.

December 31, 2018
Twelve months ended
 
 
 
 
 
 
 
Defaulted TDRs2
(In thousands)
Number
of Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Number
of Loans
 
Post-
Modification
Outstanding
Recorded
Investment
Commercial real estate
 
 
 
 
 
 
 
 
 
Commercial real estate other1
1

 
26

 
26

 
0

 
0

Residential real estate
 
 
 
 
 
 
 
 
 
Home equity1
6

 
$
507

 
$
507

 
0

 
$
0

Total
7

 
$
533

 
$
533

 
0

 
$
0



1Represents the following concessions: extension of term and reduction of rate.
2TDRs that defaulted during the 12 months ended December 31, 2018 that had been restructured in the prior twelve months.
Schedule of credit quality indicators on loans by class of commercial and industrial loans and commercial real estate loans
The following table presents credit quality indicators (internal risk grade) by class of commercial loans, commercial real estate loans and agricultural loans as of December 31, 2019 and 2018.
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial Other
 
Commercial and Industrial Agriculture
 
Commercial Real Estate Other
 
Commercial Real Estate Agriculture
 
Commercial Real Estate Construction
 
Total
Originated loans and leases
 
 
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
 
 
Pass
$
851,517

 
$
89,892

 
$
1,857,142

 
$
166,888

 
$
212,302

 
$
3,177,741

Special Mention
8,306

 
1,698

 
16,623

 
3,173

 
0

 
29,800

Substandard
3,376

 
14,196

 
25,880

 
14,640

 
0

 
58,092

Total
$
863,199

 
$
105,786

 
$
1,899,645

 
$
184,701

 
$
212,302

 
$
3,265,633


December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial Other
 
Commercial and Industrial Agriculture
 
Commercial Real Estate Other
 
Commercial Real Estate Agriculture
 
Commercial Real Estate Construction
 
Total
Acquired loans
 
 
 
 
 
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
 
 
Pass
$
38,879

 
$
0

 
$
143,175

 
$
197

 
$
1,335

 
$
183,586

Special Mention
0

 
0

 
0

 
0

 
0

 
0

Substandard
197

 
0

 
2,210

 
0

 
0

 
2,407

Total
$
39,076

 
$
0

 
$
145,385

 
$
197

 
$
1,335

 
$
185,993

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial Other
 
Commercial and Industrial Agriculture
 
Commercial Real Estate Other
 
Commercial Real Estate Agriculture
 
Commercial Real Estate Construction
 
Total
Originated loans and leases
 
 
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
 
 
Pass
$
910,476

 
$
93,939

 
$
1,797,599

 
$
157,156

 
$
164,285

 
$
3,123,455

Special Mention
8,675

 
4,951

 
9,484

 
4,964

 
0

 
28,074

Substandard
7,278

 
8,604

 
20,196

 
7,885

 
0

 
43,963

Total
$
926,429

 
$
107,494

 
$
1,827,279

 
$
170,005

 
$
164,285

 
$
3,195,492

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial Other
 
Commercial and Industrial Agriculture
 
Commercial Real Estate Other
 
Commercial Real Estate Agriculture
 
Commercial Real Estate Construction
 
Total
Acquired loans
 
 
 
 
 
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
 
 
Pass
$
43,447

 
$
0

 
$
174,383

 
$
224

 
$
1,384

 
$
219,438

Special Mention
0

 
0

 
452

 
0

 
0

 
452

Substandard
265

 
0

 
2,649

 
0

 
0

 
2,914

Total
$
43,712

 
$
0

 
$
177,484

 
$
224

 
$
1,384

 
$
222,804
Schedule of credit quality indicators by class of residential real estate and consumer loans
The following table presents credit quality indicators by class of residential real estate loans and by class of consumer loans as of December 31, 2019 and 2018. Nonperforming loans include nonaccrual, impaired and loans 90 days past due and accruing interest, all other loans are considered performing.
December 31, 2019
(In thousands)
Residential Home Equity
 
Residential Mortgages
 
Consumer Indirect
 
Consumer Other
 
Total
Originated loans and leases
 
 
 
 
 
 
 
 
 
Performing
$
201,970

 
$
1,133,237

 
$
12,847

 
$
60,503

 
$
1,408,557

Nonperforming
1,924

 
7,335

 
117

 
158

 
9,534

Total
$
203,894

 
$
1,140,572

 
$
12,964

 
$
60,661

 
$
1,418,091

December 31, 2019
 
 
 
 
 
 
 
 
 
(In thousands)
Residential Home Equity
 
Residential Mortgages
 
Consumer Indirect
 
Consumer Other
 
Total
Acquired Loans and Leases
 
 
 
 
 
 
 
 
 
Performing
$
14,479

 
$
17,269

 
$
0

 
$
785

 
$
32,533

Nonperforming
872

 
751

 
0

 
0

 
1,623

Total
$
15,351

 
$
18,020

 
$
0

 
$
785

 
$
34,156

December 31, 2018
 
 
 
 
 
 
 
 
 
(In thousands)
Residential Home Equity
 
Residential Mortgages
 
Consumer Indirect
 
Consumer Other
 
Total
Originated loans and leases
 
 
 
 
 
 
 
 
 
Performing
$
206,675

 
$
1,076,032

 
$
12,508

 
$
57,486

 
$
1,352,701

Nonperforming
1,784

 
7,770

 
155

 
79

 
9,788

Total
$
208,459

 
$
1,083,802

 
$
12,663

 
$
57,565

 
$
1,362,489

December 31, 2018
(In thousands)
Residential Home Equity
 
Residential Mortgages
 
Consumer Indirect
 
Consumer Other
 
Total
Acquired loans
 
 
 
 
 
 
 
 
 
Performing
$
19,735

 
$
19,380

 
$
0

 
$
761

 
$
39,876

Nonperforming
1,414

 
1,104

 
0

 
0

 
2,518

Total
$
21,149

 
$
20,484

 
$
0

 
$
761

 
$
42,394