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Loans (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2020
Commercial business	$	824,818	$	(6,127	)	$	818,691
Commercial mortgage		1,142,359		(2,033	)		1,140,326
Residential real estate loans		572,562		12,473			585,035
Residential real estate lines		94,285		3,142			97,427
Consumer indirect		801,434		26,671			828,105
Other consumer		16,071		166			16,237
Total	$	3,451,529	$	34,292			3,485,821
Allowance for credit losses - loans							(46,316	)
Total loans, net						$	3,439,505
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
June 30, 2020
Commercial business	$	398	$	28	$	—	$	426	$	4,918	$	819,474	$	824,818	$	3,647
Commercial mortgage		115		69		—		184		4,140		1,138,035		1,142,359		4,140
Residential real estate loans		786		27		—		813		2,992		568,757		572,562		2,992
Residential real estate lines		74		35		—		109		177		93,999		94,285		177
Consumer indirect		1,571		424		—		1,995		868		798,571		801,434		868
Other consumer		100		48		57		205		30		15,836		16,071		30
Total loans, gross	$	3,044	$	631	$	57	$	3,732	$	13,125	$	3,434,672	$	3,451,529	$	11,854
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 and six months ended June 30, 2020 and 2019:

	Quarter-to-Date						Year-to-Date
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
June 30, 2020
Commercial business		—	$	—	$	—		1	$	11,898	$	11,898
Total		—	$	—	$	—		1	$	11,898	$	11,898

June 30, 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 June 30, 2020 (in thousands):

	Collateral type
	Business assets		Real property		Total
June 30, 2020
Commercial business	$	3,533	$	3,356	$	6,889
Commercial mortgage		—		4,112		4,112
Total	$	3,533	$	7,468	$	11,001

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
June 30, 2020
Commercial Business
Uncriticized	$	315,256	$	113,442	$	94,313	$	54,704	$	14,210	$	23,713	$	186,745	$	—	$	802,383
Special mention		—		24		279		1,526		241		92		2,667		—		4,829
Substandard		29		629		1,150		819		202		3,467		5,183		—		11,479
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	315,285	$	114,095	$	95,742	$	57,049	$	14,653	$	27,272	$	194,595	$	—	$	818,691
Commercial Mortgage
Uncriticized	$	138,718	$	272,620	$	212,339	$	197,891	$	97,668	$	212,453	$	485	$	—	$	1,132,174
Special mention		—		—		132		146		57		356		—		—		691
Substandard		—		2,446		128		1,619		158		2,911		199		—		7,461
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	138,718	$	275,066	$	212,599	$	199,656	$	97,883	$	215,720	$	684	$	—	$	1,140,326

Retail Loan Portfolio Categorized by Performance Status

The following table sets forth the Company’s retail loan portfolio, categorized by performance 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
June 30, 2020
Residential Real Estate Loans
Performing	$	65,156	$	104,978	$	99,825	$	78,953	$	74,386	$	158,745	$	—	$	—	$	582,043
Nonperforming		—		108		943		730		176		1,035		—		—		2,992
Total	$	65,156	$	105,086	$	100,768	$	79,683	$	74,562	$	159,780	$	—	$	—	$	585,035
Residential Real Estate Lines
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	86,521	$	10,729	$	97,250
Nonperforming		—		—		—		—		—		—		46		131		177
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	86,567	$	10,860	$	97,427
Consumer Indirect
Performing	$	131,503	$	240,429	$	208,797	$	148,267	$	68,837	$	29,404	$	—	$	—	$	827,237
Nonperforming		48		123		309		179		178		31		—		—		868
Total	$	131,551	$	240,552	$	209,106	$	148,446	$	69,015	$	29,435	$	—	$	—	$	828,105
Other Consumer
Performing	$	4,515	$	4,230	$	2,448	$	1,308	$	588	$	563	$	2,555	$	—	$	16,207
Nonperforming		—		16		8		5		—		—		1		—		30
Total	$	4,515	$	4,246	$	2,456	$	1,313	$	588	$	563	$	2,556	$	—	$	16,237

Changes in the Allowance for Loan Losses

The following table sets forth the changes in the allowance for credit losses - loans for the three- and six-month periods ended June 30, 2020 (in thousands):

	Commercial Business			Commercial Mortgage			Residential Real Estate Loans			Residential Real Estate Lines		Consumer Indirect			Other Consumer			Total
Three months ended June 30, 2020
Beginning balance	$	10,223		$	15,154		$	6,170		$	899	$	10,645		$	265		$	43,356
Charge-offs		(25	)		(1,072	)		(2	)		—		(2,554	)		(70	)		(3,723	)
Recoveries		1,483			—			8			—		1,379			67			2,937
Provision (credit)		718			1,584			(407	)		40		1,752			59			3,746
Ending balance	$	12,399		$	15,666		$	5,769		$	939	$	11,222		$	321		$	46,316
Six months ended June 30, 2020
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		(8,266	)		(1,072	)		(100	)		—		(5,978	)		(339	)		(15,755	)
Recoveries		1,541			—			18			3		3,047			217			4,826
Provision		8,012			3,747			1,502			211		3,535			162			17,169
Ending balance	$	12,399		$	15,666		$	5,769		$	939	$	11,222		$	321		$	46,316

The following table sets forth the changes in the allowance for credit losses - loans for the three- and six-month periods ended June 30, 2019 (in thousands):

	Commercial Business			Commercial Mortgage			Residential Real Estate Loans			Residential Real Estate Lines			Consumer Indirect			Other Consumer			Total
Three months ended June 30, 2019
Beginning balance	$	12,167		$	6,316		$	1,265		$	173		$	13,025		$	381		$	33,327
Charge-offs		(138	)		(3	)		(87	)		(2	)		(2,700	)		(243	)		(3,173	)
Recoveries		128			—			11			3			1,678			106			1,926
Provision (credit)		(440	)		2,477			28			(29	)		154			164			2,354
Ending balance	$	11,717		$	8,790		$	1,217		$	145		$	12,157		$	408		$	34,434
Six months ended June 30, 2019
Beginning balance	$	14,312		$	5,219		$	1,112		$	210		$	12,572		$	489		$	33,914
Charge-offs		(268	)		(3	)		(118	)		(2	)		(5,682	)		(552	)		(6,625	)
Recoveries		231			17			17			5			3,102			226			3,598
Provision (credit)		(2,558	)		3,557			206			(68	)		2,165			245			3,547
Ending balance	$	11,717		$	8,790		$	1,217		$	145		$	12,157		$	408		$	34,434

Loans and the related allowance for credit losses - loans are presented below as of the dates indicated (in thousands):

	Commercial Business		Commercial Mortgage		Residential Real Estate Loans		Residential Real Estate Lines		Consumer Indirect		Other Consumer		Total
June 30, 2019
Loans:
Ending balance	$	594,121	$	1,011,925	$	535,873	$	104,937	$	846,829	$	16,379	$	3,110,064
Evaluated for impairment:
Individually	$	768	$	7,274	$	—	$	—	$	—	$	—	$	8,042
Collectively	$	593,353	$	1,004,651	$	535,873	$	104,937	$	846,829	$	16,379	$	3,102,022
Allowance for loan losses:
Ending balance	$	11,717	$	8,790	$	1,217	$	145	$	12,157	$	408	$	34,434
Evaluated for impairment:
Individually	$	110	$	2,997	$	—	$	—	$	—	$	—	$	3,107
Collectively	$	11,607	$	5,793	$	1,217	$	145	$	12,157	$	408	$	31,327