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Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Schedule of allowance for loan and lease losses segregated by originated and acquired loan and lease portfolios and by portfolio segment

The following table details activity in the allowance for credit losses on loans for the three and six months ended June 30, 2021 and 2020. The Company adopted ASU 2016-13 on January 1, 2020 using the modified retrospective approach. The transition adjustment included a decrease in the allowance of $2.5 million. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Three Months Ended June 30, 2021
(In thousands)			Commercial & Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases			Total
Allowance for credit losses:
Beginning balance			$	7,750		$	30,467		$	9,470		$	1,583		$	69		$	49,339
Charge-offs			(2)			0			(48)			(60)			0			(110)
Recoveries			4			826			125			39			0			994
Provision (credit) for credit loss expense			(639)			(2,092)			(13)			28			(2)			(2,718)
Ending Balance			$	7,113		$	29,201		$	9,534		$	1,590		$	67		$	47,505

Three Months Ended June 30, 2020
(In thousands)			Commercial & Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases			Total
Allowance for credit losses:
Beginning balance			$	11,665		$	22,446		$	16,330		$	1,883		$	80		$	52,404
Charge-offs			0			(15)			(1)			(127)			0			(143)
Recoveries			21			12			84			52			0			169
Provision (credit) for credit loss expense			(573)			1,843			(1,401)			(212)			(5)			(348)
Ending Balance			$	11,113		$	24,286		$	15,012		$	1,596		$	75		$	52,082

Six Months Ended June 30, 2021
(In thousands)			Commercial & Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases			Total
Allowance for credit losses:
Beginning balances			$	9,239		$	30,546		$	10,257		$	1,562		$	65		$	51,669
Charge-offs			(118)			0			(46)			(152)			0			(316)
Recoveries			101			1,039			158			82			0			1,380
Provision (credit) for credit loss expense			(2,109)			(2,384)			(835)			98			2			(5,228)
Ending Balance			$	7,113		$	29,201		$	9,534		$	1,590		$	67		$	47,505

Six Months Ended June 30, 2020
(In thousands)			Commercial & Industrial			Commercial Real Estate			Residential Real Estate			Consumer and Other			Finance Leases			Total
Allowance for credit losses:
Beginning balance, prior to adoption of ASC 326			$	10,541		$	21,608		$	6,381		$	1,362		$	0		$	39,892
Impact of adopting ASC 326			(2,008)			(5,917)			4,459			850			82			(2,534)
Charge-offs			(1)			(1,305)			(3)			(264)			0			(1,573)
Recoveries			37			30			163			121			0			351
Provision (credit) for credit loss expense			2,544			9,870			4,012			(473)			(7)			15,946
Ending Balance			$	11,113		$	24,286		$	15,012		$	1,596		$	75		$	52,082

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:

(In thousands)			Real Estate			Business Assets			Other			Total			ACL Allocation
June 30, 2021
Commercial and Industrial			$	46		$	501		$	478		$	1,025		$	155
Commercial Real Estate			35,167			0			0			35,167			1,666
Commercial Real Estate - Agriculture			1,559			0			0			1,559			0
Total			$	35,213		$	501		$	478		$	36,192		$	1,821

(In thousands)			Real Estate			Business Assets			Other			Total			ACL Allocation
December 31, 2020
Commercial and Industrial			$	103		$	582		$	110		$	795		$	122
Commercial Real Estate			24,277			1,418			0			25,695			186
Total			$	24,380		$	2,000		$	110		$	26,490		$	308

Schedule of loans modified in troubled debt restructuring

The following tables present information on loans modified in a TDR during the six months ended June 30, 2020. Post-modification amounts are presented as of June 30, 2020.

			Six Months Ended
June 30, 2020												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			0			$	0		$	0		1			$	37
Residential real estate
Home equity1			2			121			121			1			87
Total			2			$	121		$	121		2			$	124

1 Represents the following concessions:  extension of term and reduction of rate.

2 TDRs that defaulted during the six months ended June 30, 2020 that were restructured in the prior twelve months.

Schedule of credit quality indicators by class of commercial and industrial loans and commercial real estate loans

The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2021 and December 31, 2020.

June 30, 2021
(In thousands)			2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term			Total Loans
Commercial & Industrial - Other:
Pass			$	61,749		$	69,200		$	62,167		$	48,666		$	46,939		$	308,161		$	147,361		$	3,414		$	747,657
Special Mention			28			860			328			309			552			1,367			799			0			4,243
Substandard			15			385			300			801			231			695			1,558			0			3,985
Total Commercial & Industrial - Other			$	61,792		$	70,445		$	62,795		$	49,776		$	47,722		$	310,223		$	149,718		$	3,414		$	755,885
Commercial and Industrial - PPP:
Pass			$	205,576		$	53,388		$	0		$	0		$	0		$	0		$	0		$	0		$	258,964
Special Mention			0			0			0			0			0			0			0			0			0
Substandard			0			0			0			0			0			0			0			0			0
Total Commercial and Industrial - PPP			$	205,576		$	53,388		$	0		$	0		$	0		$	0		$	0		$	0		$	258,964
Commercial and Industrial - Agriculture:
Pass			$	2,993		$	9,004		$	6,581		$	9,802		$	6,724		$	4,347		$	35,006		$	268		$	74,725
Special Mention			0			0			0			25			21			0			225			0			271
Substandard			0			93			24			0			118			2,337			1,783			0			4,355
Total Commercial and Industrial - Agriculture			$	2,993		$	9,097		$	6,605		$	9,827		$	6,863		$	6,684		$	37,014		$	268		$	79,351
Commercial Real Estate
Pass			$	145,134		$	269,940		$	258,852		$	206,663		$	228,178		$	858,179		$	73,474		$	22,560		$	2,062,980
Special Mention			0			1,777			11,336			3,868			4,578			78,555			362			0			100,476
Substandard			0			0			4,933			18,535			6,171			20,521			182			0			50,342
Total Commercial Real Estate			$	145,134		$	271,717		$	275,121		$	229,066		$	238,927		$	957,255		$	74,018		$	22,560		$	2,213,798
Commercial Real Estate - Agriculture:
Pass			$	11,618		$	20,794		$	32,737		$	43,163		$	24,080		$	57,892		$	3,970		$	2,586		$	196,840
Special Mention			0			1,930			0			0			0			4			49			0			1,983
Substandard			0			0			0			40			0			2,365			635			0			3,040
Total Commercial Real Estate - Agriculture			$	11,618		$	22,724		$	32,737		$	43,203		$	24,080		$	60,261		$	4,654		$	2,586		$	201,863
Commercial Real Estate - Construction
Pass			$	5,069		$	13,480		$	18,804		$	7,745		$	1,739		$	9,308		$	92,062		$	9,020		$	157,227
Special Mention			0			0			0			0			0			340			774			0			1,114
Substandard			0			0			0			0			0			313			0			0			313
Total Commercial Real Estate - Construction			$	5,069		$	13,480		$	18,804		$	7,745		$	1,739		$	9,961		$	92,836		$	9,020		$	158,654

December 31, 2020
(In thousands)			2020			2019			2018			2017			2016			Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term			Total Loans
Commercial & Industrial - Other:
Internal risk grade:
Pass			$	91,597		$	72,639		$	56,191		$	60,714		$	33,402		$	301,027		$	149,969		$	16,301		$	781,840
Special Mention			1,064			367			344			912			2,045			228			1,331			0			6,291
Substandard			412			305			933			485			292			783			1,646			0			4,856
Total Commercial & Industrial - Other			$	93,073		$	73,311		$	57,468		$	62,111		$	35,739		$	302,038		$	152,946		$	16,301		$	792,987
Commercial and Industrial - Agriculture:
Pass			$	11,536		$	8,005		$	11,162		$	6,531		$	3,539		$	2,599		$	41,936		$	1,340		$	86,648
Special Mention			0			0			28			729			0			0			2080			0			2837
Substandard			99			83			0			202			0			2308			2312			0			5004
Total Commercial and Industrial - Agriculture			$	11,635		$	8,088		$	11,190		$	7,462		$	3,539		$	4,907		$	46,328		$	1,340		$	94,489
Commercial and Industrial - PPP:
Pass			$	291,252		$	0		$	0		$	0		$	0		$	0		$	0		$	0		$	291,252
Special Mention			0			0			0			0			0			0			0			0			0
Substandard			0			0			0			0			0			0			0			0			0
Total Commercial and Industrial - PPP			$	291,252		$	0		$	0		$	0		$	0		$	0		$	0		$	0		$	291,252
Commercial Real Estate
Pass			$	278,747		$	246,331		$	232,651		$	237,487		$	290,106		$	664,027		$	33,117		$	64,903		$	2,047,369
Special Mention			35			13,016			5,612			4,654			34,310			46,074			203			0			103,904
Substandard			0			4,933			18,395			6,172			5,625			17,610			302			0			53,037
Total Commercial Real Estate			$	278,782		$	264,280		$	256,658		$	248,313		$	330,041		$	727,711		$	33,622		$	64,903		$	2,204,310
Commercial Real Estate - Agriculture:
Pass			$	22,440		$	35,081		$	44,519		$	22,356		$	17,081		$	44,559		$	919		$	5,602		$	192,557
Special Mention			1,960			0			575			1,366			1,053			6			49			0			5,009
Substandard			0			0			0			1,777			713			1,527			283			0			4,300
Total Commercial Real Estate - Agriculture			$	24,400		$	35,081		$	45,094		$	25,499		$	18,847		$	46,092		$	1,251		$	5,602		$	201,866
Commercial Real Estate - Construction
Pass			$	14,465		$	20,705		$	7,999		$	2,478		$	1,879		$	6,682		$	85,513		$	21,051		$	160,772
Special Mention			0			0			0			0			0			467			1,453			0			1,920
Substandard			0			0			0			0			0			324			0			0			324
Total Commercial Real Estate - Construction			$	14,465		$	20,705		$	7,999		$	2,478		$	1,879		$	7,473		$	86,966		$	21,051		$	163,016

The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2021 and December 31, 2020, continued.

June 30, 2021
(In thousands)			2021			2020			2019			2018			2017			Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term			Total Loans
Residential - Home Equity
Performing			$	689		$	1,287		$	3,221		$	1,858		$	1,822		$	1,278		$	170,670		$	4,222		$	185,047
Nonperforming			0			0			17			0			0			633			1,884			0			2,534
Total Residential - Home Equity			$	689		$	1,287		$	3,238		$	1,858		$	1,822		$	1,911		$	172,554		$	4,222		$	187,581
Residential - Mortgages
Performing			$	148,238		$	295,017		$	175,802		$	109,328		$	138,882		$	359,124		$	10,456		$	581		$	1,237,428
Nonperforming			0			0			0			257			699			8,035			31			0			9,022
Total Residential - Mortgages			$	148,238		$	295,017		$	175,802		$	109,585		$	139,581		$	367,159		$	10,487		$	581		$	1,246,450
Consumer - Direct
Performing			$	12,624		$	12,508		$	10,628		$	6,625		$	5,524		$	11,115		$	5,219		$	0		$	64,243
Nonperforming			0			5			42			68			12			0			1			$	0		128
Total Consumer - Direct			$	12,624		$	12,513		$	10,670		$	6,693		$	5,536		$	11,115		$	5,220		$	0		$	64,371
Consumer - Indirect
Performing			$	1,075		$	1,134		$	874		$	2,424		$	622		$	142		$	0		$	0		$	6,271
Nonperforming			0			0			131			63			2			30			0			0			226
Total Consumer Indirect			$	1,075		$	1,134		$	1,005		$	2,487		$	624		$	172		$	0		$	0		$	6,497

December 31, 2020
(In thousands)			2020			2019			2018			2017			2016			Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term			Total Loans
Residential - Home Equity
Performing			$	1,440		$	2,764		$	1,052		$	2,120		$	722		$	1,106		$	188,614		$	44		$	197,862
Nonperforming			0			18			0			0			194			506			2,247			0			2,965
Total Residential - Home Equity			$	1,440		$	2,782		$	1,052		$	2,120		$	916		$	1,612		$	190,861		$	44		$	200,827
Residential - Mortgages
Performing			$	305,476		$	193,543		$	123,205		$	155,699		$	178,149		$	255,556		$	11,735		$	1,617		$	1,224,980
Nonperforming			0			258			455			706			1,404			7,305			52			0			10,180
Total Residential - Mortgages			$	305,476		$	193,801		$	123,660		$	156,405		$	179,553		$	262,861		$	11,787		$	1,617		$	1,235,160
Consumer - Direct
Performing			$	14,840		$	11,127		$	8,011		$	6,632		$	2,854		$	10,840		$	6,835		$	0		$	61,139
Nonperforming			5			74			167			12			0			2			0			0			260
Total Consumer - Direct			$	14,845		$	11,201		$	8,178		$	6,644		$	2,854		$	10,842		$	6,835		$	0		$	61,399
Consumer - Indirect
Performing			$	1,424		$	1,878		$	3,327		$	1,128		$	382		$	93		$	0		$	0		$	8,232
Nonperforming			0			67			44			7			36			15			0			0			169
Total Consumer Indirect			$	1,424		$	1,945		$	3,371		$	1,135		$	418		$	108		$	0		$	0		$	8,401

X

- Definition

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11B
-URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953423-111524

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447

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- Definition

Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953659-111524

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- Definition

Tabular disclosure of troubled debt restructurings in the current period: (1) for each restructuring, the principal changes in terms, the major features of settlement, or both; (2) the aggregate gain (loss) on restructuring of payables; (3) the income tax effect on the gain or loss recognized on the restructuring of payables; (4) the gain (loss) recognized on the restructuring of payables, after the impact of income tax expense or benefit; and (5) the aggregate gain (loss) on transfer of assets recognized during the period, after the impact of income tax expense or benefit.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 60
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6402221&loc=d3e15743-112638

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