Loans (Tables)

3 Months Ended

Mar. 31, 2020

Loans And Leases Receivable Disclosure [Abstract]

The Company’s loan portfolio consisted of the following as of the dates indicated (in thousands):

	Principal Amount Outstanding		Net Deferred Loan (Fees) Costs			Loans, Net
March 31, 2020
Commercial business	$	587,903	$	965		$	588,868
Commercial mortgage		1,109,344		(1,968	)		1,107,376
Residential real estate loans		567,714		12,086			579,800
Residential real estate lines		98,996		3,117			102,113
Consumer indirect		815,969		27,699			843,668
Other consumer		15,249		153			15,402
Total	$	3,195,175	$	42,052			3,237,227
Allowance for credit losses - loans							(43,356	)
Total loans, net						$	3,193,871
December 31, 2019
Commercial business	$	571,222	$	818		$	572,040
Commercial mortgage		1,108,315		(2,032	)		1,106,283
Residential real estate loans		560,717		11,633			572,350
Residential real estate lines		101,048		3,070			104,118
Consumer indirect		822,179		27,873			850,052
Other consumer		15,984		160			16,144
Total	$	3,179,465	$	41,522			3,220,987
Allowance for credit losses - loans							(30,482	)
Total loans, net						$	3,190,505

Recorded Investment by Loan Class in Current and Nonaccrual Loans

The Company’s recorded investment, by loan class, in current and nonaccrual loans, as well as an analysis of accruing delinquent loans is set forth as of the dates indicated (in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Nonaccrual		Current		Total Loans		Nonaccrual with no allowance
March 31, 2020
Commercial business	$	234	$	55	$	—	$	289	$	5,507	$	582,107	$	587,903	$	4,531
Commercial mortgage		8,476		—		—		8,476		2,984		1,097,884		1,109,344		824
Residential real estate loans		2,997		1		—		2,998		1,971		562,745		567,714		1,971
Residential real estate lines		233		3		—		236		143		98,617		98,996		143
Consumer indirect		7,127		684		—		7,811		1,777		806,381		815,969		1,777
Other consumer		98		20		2		120		—		15,129		15,249		-
Total loans, gross	$	19,165	$	763	$	2	$	19,930	$	12,382	$	3,162,863	$	3,195,175	$	9,246
December 31, 2019
Commercial business	$	361	$	—	$	—	$	361	$	1,177	$	569,684	$	571,222
Commercial mortgage		531		—		—		531		3,146		1,104,638		1,108,315
Residential real estate loans		929		114		—		1,043		2,484		557,190		560,717
Residential real estate lines		231		37		—		268		102		100,678		101,048
Consumer indirect		3,729		1,019		—		4,748		1,725		815,706		822,179
Other consumer		116		8		6		130		—		15,854		15,984
Total loans, gross	$	5,897	$	1,178	$	6	$	7,081	$	8,634	$	3,163,750	$	3,179,465

The following presents, by loan class, information related to loans modified in a TDR during the three months ended March 31, 2020 and 2019:

	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
March 31, 2020
Commercial business		1	$	11,898	$	11,898
Total		1	$	11,898	$	11,898

March 31, 2019
Commercial business		—	$	—	$	—
Total		—	$	—	$	—

Summary of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans by collateral type as of March 31, 2020 (in thousands):

	Collateral type
	Business assets		Real property		Total
March 31, 2020
Commercial business	$	2,974	$	4,571	$	7,545
Commercial mortgage		—		5,418		5,418
Total	$	2,974	$	9,989	$	12,963

Commercial Loan Portfolio Categorized by Internally Assigned Asset Classification

The following table sets forth the Company’s commercial loan portfolio, categorized by internally assigned asset classification, as of the dates indicated (in thousands):

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
March 31, 2020
Commercial Business
Uncriticized	$	44,451	$	120,112	$	99,167	$	67,821	$	15,277	$	26,344	$	195,088	$	—	$	568,260
Special mention		—		2,706		231		1,688		218		181		4,284		—		9,308
Substandard		—		194		1,173		867		453		4,200		4,407		—		11,294
Doubtful		—		—		—		—		—		—		6		—		6
Total	$	44,451	$	123,012	$	100,571	$	70,376	$	15,948	$	30,725	$	203,785	$	—	$	588,868
Commercial Mortgage
Uncriticized	$	46,283	$	282,360	$	214,637	$	211,456	$	109,525	$	232,204	$	529	$	—	$	1,096,994
Special mention		—		—		35		41		1,013		250		—		—		1,339
Substandard		—		2,446		229		1,625		157		4,387		199		—		9,043
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	46,283	$	284,806	$	214,901	$	213,122	$	110,695	$	236,841	$	728	$	—	$	1,107,376

Retail Loan Portfolio Categorized by Payment Status

The following table sets forth the Company’s retail loan portfolio, categorized by payment status, as of the dates indicated (in thousands):

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
March 31, 2020
Residential Real Estate Loans
Performing	$	28,479	$	112,239	$	105,772	$	83,138	$	79,834	$	168,367	$	—	$	—	$	577,829
Nonperforming		—		109		584		85		178		1,015		—		—		1,971
Total	$	28,479	$	112,348	$	106,356	$	83,223	$	80,012	$	169,382	$	—	$	—	$	579,800
Residential Real Estate Lines
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	91,044	$	10,926	$	101,970
Nonperforming		—		—		—		—		—		—		46		97		143
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	91,090	$	11,023	$	102,113
Consumer Indirect
Performing	$	75,304	$	255,499	$	227,717	$	165,416	$	79,736	$	38,219	$	—	$	—	$	841,891
Nonperforming		25		441		576		366		289		80		—		—		1,777
Total	$	75,329	$	255,940	$	228,293	$	165,782	$	80,025	$	38,299	$	—	$	—	$	843,668
Other Consumer
Performing	$	1,646	$	4,889	$	2,868	$	1,672	$	730	$	690	$	2,907	$	—	$	15,402
Nonperforming		—		—		—		—		—		—		—		—		—
Total	$	1,646	$	4,889	$	2,868	$	1,672	$	730	$	690	$	2,907	$	—	$	15,402

Changes in the Allowance for Loan Losses

The following table sets forth the changes in the allowance for credit losses - loans for the three-month periods ended as of the dates indicated (in thousands):

	Commercial Business			Commercial Mortgage		Residential Real Estate Loans			Residential Real Estate Lines			Consumer Indirect			Other Consumer			Total
March 31, 2020
Allowance for credit losses - loan:
Beginning balance, prior to adoption of ASC 326	$	11,358		$	5,681	$	1,059		$	118		$	11,852		$	414		$	30,482
Impact of adopting ASC 326		(246	)		7,310		3,290			607			(1,234	)		(133	)		9,594
Beginning balance, after adoption of ASC 326		11,112			12,991		4,349			725			10,618			281			40,076
Charge-offs		(8,241	)		—		(98	)		—			(3,424	)		(269	)		(12,032	)
Recoveries		58			—		10			3			1,668			150			1,889
Provision (credit)		7,294			2,163		1,909			171			1,783			103			13,423
Ending balance	$	10,223		$	15,154	$	6,170		$	899		$	10,645		$	265		$	43,356

March 31, 2019
Allowance for loan losses:
Beginning balance	$	14,312		$	5,219	$	1,112		$	210		$	12,572		$	489		$	33,914
Charge-offs		(130	)		—		(31	)		—			(2,982	)		(309	)		(3,452	)
Recoveries		103			17		6			2			1,424			120			1,672
Provision (credit)		(2,118	)		1,080		178			(39	)		2,011			81			1,193
Ending balance	$	12,167		$	6,316	$	1,265		$	173		$	13,025		$	381		$	33,327
Evaluated for impairment:
Individually	$	181		$	2	$	—		$	—		$	—		$	—		$	183
Collectively	$	11,986		$	6,314	$	1,265		$	173		$	13,025		$	381		$	33,144
Loans:
Ending balance	$	552,834		$	995,183	$	525,036		$	105,592		$	872,410		$	15,941		$	3,066,996
Evaluated for impairment:
Individually	$	725		$	1,352	$	—		$	—		$	—		$	—		$	2,077
Collectively	$	552,109		$	993,831	$	525,036		$	105,592		$	872,410		$	15,941		$	3,064,919