Loans (Tables)

12 Months Ended

Dec. 31, 2020

Loans And Leases Receivable Disclosure [Abstract]

The Company’s loan portfolio consisted of the following at December 31 (in thousands):

	Principal Amount Outstanding		Net Deferred Loan (Fees) Costs			Loans, Net
2020
Commercial business	$	798,409	$	(4,261	)	$	794,148
Commercial mortgage		1,256,525		(2,624	)		1,253,901
Residential real estate loans		586,537		13,263			599,800
Residential real estate lines		86,708		3,097			89,805
Consumer indirect		812,816		27,605			840,421
Other consumer		16,913		150			17,063
Total	$	3,557,908	$	37,230			3,595,138
Allowance for credit losses - loans							(52,420	)
Total loans, net						$	3,542,718

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 loan losses							(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 December 31 (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
2020
Commercial business	$	264	$	87	$	-	$	351	$	1,975	$	796,083	$	798,409	$	1,502
Commercial mortgage		822		26		-		848		2,906		1,252,771		1,256,525		2,709
Residential real estate loans		984		60		-		1,044		2,587		582,906		586,537		2,587
Residential real estate lines		40		15		-		55		323		86,330		86,708		323
Consumer indirect		3,966		1,348		-		5,314		1,495		806,007		812,816		1,495
Other consumer		133		18		231		382		-		16,531		16,913		-
Total loans, gross	$	6,209	$	1,554	$	231	$	7,994	$	9,286	$	3,540,628	$	3,557,908	$	8,616

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

Summary of Collateral Dependent Loans

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

	Collateral type
	Business assets		Real property		Total		Specific Reserve
December 31, 2020
Commercial business	$	2,379	$	—	$	2,379	$	1,383
Commercial mortgage		—		36,625		36,625		8,187
Total	$	2,379	$	36,625	$	39,004	$	9,570

Summary Of Impaired Loans

The following table presents the recorded investment, unpaid principal balance and related allowance of impaired loans as well as average recorded investment and interest income recognized on impaired loans at December 31, 2019 (in thousands):

	Recorded Investment ⁽¹⁾		Unpaid Principal Balance ⁽¹⁾		Related Allowance		Average Recorded Investment		Interest Income Recognized
2019
With no related allowance recorded:
Commercial business	$	563	$	775	$	-	$	411	$	-
Commercial mortgage		973		1,749		-		1,701		-
		1,536		2,524		-		2,112		-
With an allowance recorded:
Commercial business		614		614		214		1,207		-
Commercial mortgage		2,173		2,173		479		1,825		-
		2,787		2,787		693		3,032		-
	$	4,323	$	5,311	$	693	$	5,144	$	-

⁽¹⁾ Difference between recorded investment and unpaid principal balance represents partial charge-offs.

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 December 31 (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
December 31, 2020
Commercial Business
Uncriticized	$	350,992	$	112,469	$	82,029	$	31,990	$	8,195	$	16,600	$	179,770	$	-	$	782,045
Special mention		-		360		21		709		41		1,025		2,995		-		5,151
Substandard		193		211		1,183		464		202		309		4,390		-		6,952
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	351,185	$	113,040	$	83,233	$	33,163	$	8,438	$	17,934	$	187,155	$	-	$	794,148
Commercial Mortgage
Uncriticized	$	310,364	$	227,406	$	163,839	$	161,771	$	74,915	$	154,399	$	731	$	-	$	1,093,425
Special mention		14,299		42,305		19,505		27,530		12,256		28,744		43		-		144,682
Substandard		189		2,521		1,890		1,648		3		9,344		199		-		15,794
Doubtful		-		-		-		-		-		-		-		-		-
Total	$	324,852	$	272,232	$	185,234	$	190,949	$	87,174	$	192,487	$	973	$	-	$	1,253,901

Retail Loan Portfolio Categorized by Performance Status

The following table sets forth the Company’s retail loan portfolio, categorized by payment status, as of December 31 (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
December 31, 2020
Residential Real Estate Loans
Performing	$	137,926	$	103,923	$	87,153	$	66,446	$	67,473	$	134,292	$	-	$	-	$	597,213
Nonperforming		-		199		765		665		233		725		-		-		2,587
Total	$	137,926	$	104,122	$	87,918	$	67,111	$	67,706	$	135,017	$	-	$	-	$	599,800
Residential Real Estate Lines
Performing	$	-	$	-	$	-	$	-	$	-	$	-	$	79,257	$	10,225	$	89,482
Nonperforming		-		-		-		-		-		-		65		258		323
Total	$	-	$	-	$	-	$	-	$	-	$	-	$	79,322	$	10,483	$	89,805
Consumer Indirect
Performing	$	295,216	$	202,187	$	166,773	$	111,008	$	47,793	$	15,949	$	-	$	-	$	838,926
Nonperforming		70		652		319		287		132		35		-		-		1,495
Total	$	295,286	$	202,839	$	167,092	$	111,295	$	47,925	$	15,984	$	-	$	-	$	840,421
Other Consumer
Performing	$	6,774	$	3,177	$	1,765	$	907	$	369	$	508	$	3,563	$	-	$	17,063
Nonperforming		-		-		-		-		-		-		-		-		-
Total	$	6,774	$	3,177	$	1,765	$	907	$	369	$	508	$	3,563	$	-	$	17,063

Changes in the Allowance for Loan Losses

The following tables set forth the changes in the allowance for credit losses - loans for the years ended December 31 (in thousands):

	Commercial Business			Commercial Mortgage			Residential Real Estate Loans			Residential Real Estate Lines			Consumer Indirect			Other Consumer			Total
2020
Allowance for credit losses - loans:
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		(9,093	)		(1,792	)		(100	)		-			(9,959	)		(681	)		(21,625	)
Recoveries		1,709			37			28			3			5,681			352			7,810
Provision (credit)		9,852			10,527			(353	)		(54	)		5,825			362			26,159
Ending balance	$	13,580		$	21,763		$	3,924		$	674		$	12,165		$	314		$	52,420

2019
Allowance for loan losses:
Beginning balance	$	14,312		$	5,219		$	1,112		$	210		$	12,572		$	489		$	33,914
Charge-offs		(2,481	)		(2,997	)		(340	)		(13	)		(10,810	)		(1,170	)		(17,811	)
Recoveries		492			17			43			6			5,390			387			6,335
Provision (credit)		(965	)		3,442			244			(85	)		4,700			708			8,044
Ending balance	$	11,358		$	5,681		$	1,059		$	118		$	11,852		$	414		$	30,482
Evaluated for impairment:
Individually	$	214		$	479		$	-		$	-		$	-		$	-		$	693
Collectively	$	11,144		$	5,202		$	1,059		$	118		$	11,852		$	414		$	29,789

Loans:
Ending balance	$	571,222		$	1,108,315		$	560,717		$	101,048		$	822,179		$	15,984		$	3,179,465
Evaluated for impairment:
Individually	$	1,177		$	3,146		$	-		$	-		$	-		$	-		$	4,323
Collectively	$	570,045		$	1,105,169		$	560,717		$	101,048		$	822,179		$	15,984		$	3,175,142

	Commercial Business			Commercial Mortgage			Residential Mortgage			Home Equity			Consumer Indirect			Other Consumer			Total
2018
Allowance for loan losses:
Beginning balance	$	15,668		$	3,696		$	1,322		$	180		$	13,415		$	391			34,672
Charge-offs		(2,319	)		(1,020	)		(95	)		(142	)		(10,850	)		(1,308	)		(15,734	)
Recoveries		509			13			159			20			5,024			317			6,042
Provision		454			2,530			(274	)		152			4,983			1,089			8,934
Ending balance	$	14,312		$	5,219		$	1,112		$	210		$	12,572		$	489		$	33,914
Evaluated for impairment:
Individually	$	205		$	1		$	-		$	-		$	-		$	-		$	206
Collectively	$	14,107		$	5,218		$	1,112		$	210		$	12,572		$	489		$	33,708

Loans:
Ending balance	$	557,040		$	960,265		$	514,981		$	106,712		$	888,732		$	16,590		$	3,044,320
Evaluated for impairment:
Individually	$	1,044		$	2,034		$	-		$	-		$	-		$	-		$	3,078
Collectively	$	555,996		$	958,231		$	514,981		$	106,712		$	888,732		$	16,590		$	3,041,242