Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity Registrant Name | COMMUNITY BANK SYSTEM, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-13695 | ||
Entity Tax Identification Number | 16-1213679 | ||
Entity Address, Address Line One | 5790 Widewaters Parkway | ||
Entity Address, City or Town | DeWitt | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 13214 | ||
City Area Code | 315 | ||
Local Phone Number | 445-2282 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 3,000,356,306 | ||
Entity Common Stock, Shares Outstanding | 53,675,085 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000723188 | ||
Document Annual Report | true | ||
Title of 12(b) Security | Common Stock, $1.00 par value per share | ||
Trading Symbol | CBU | ||
Security Exchange Name | NYSE | ||
ICFR Auditor Attestation Flag | true |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 1,645,805 | $ 205,030 |
Available-for-sale investment securities (cost of $3,427,779 and $3,011,551 respectively) | 3,547,892 | 3,044,428 |
Equity and other securities (cost of $46,511 and $42,965, respectively) | 47,455 | 43,915 |
Loans held for sale, at fair value | 1,622 | 0 |
Loans | 7,415,952 | 6,890,543 |
Allowance for credit losses | (60,869) | (49,911) |
Net loans | 7,355,083 | 6,840,632 |
Goodwill, net | 793,708 | 773,810 |
Core deposit intangibles, net | 13,831 | 16,418 |
Other intangibles, net | 39,109 | 46,695 |
Intangible assets, net | 846,648 | 836,923 |
Premises and equipment, net | 165,655 | 164,638 |
Accrued interest and fees receivable | 39,031 | 31,647 |
Other assets | 281,903 | 243,082 |
Total assets | 13,931,094 | 11,410,295 |
Liabilities: | ||
Noninterest-bearing deposits | 3,361,768 | 2,465,902 |
Interest-bearing deposits | 7,863,206 | 6,529,065 |
Total deposits | 11,224,974 | 8,994,967 |
Overnight Federal Home Loan Bank borrowings | 0 | 8,300 |
Securities sold under agreement to repurchase, short-term | 284,008 | 241,708 |
Other Federal Home Loan Bank borrowings | 6,658 | 3,750 |
Subordinated notes payable | 3,303 | 13,795 |
Subordinated debt held by unconsolidated subsidiary trusts | 77,320 | 77,320 |
Accrued interest and other liabilities | 230,724 | 215,221 |
Total liabilities | 11,826,987 | 9,555,061 |
Commitments and contingencies (See Note N) | ||
Shareholders' equity: | ||
Preferred stock, $1.00 par value, 500,000 shares authorized, 0 shares issued | 0 | 0 |
Common stock, $1.00 par value, 75,000,000 shares authorized; 53,754,599 and 51,974,726 shares issued, respectively | 53,755 | 51,975 |
Additional paid-in capital | 1,025,163 | 927,337 |
Retained earnings | 960,183 | 882,851 |
Accumulated other comprehensive income (loss) | 62,077 | (10,226) |
Treasury stock, at cost (161,472 shares including 161,457 shares held by deferred compensation arrangements at December 31, 2020, and 180,803 shares including 179,548 shares held by deferred compensation arrangements at December 31, 2019) | (6,198) | (6,823) |
Deferred compensation arrangements (161,457 shares at December 31, 2020 and 179,548 shares at December 31, 2019) | 9,127 | 10,120 |
Total shareholders' equity | 2,104,107 | 1,855,234 |
Total liabilities and shareholders' equity | $ 13,931,094 | $ 11,410,295 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Available-for-sale investment securities, cost | $ 3,427,779 | $ 3,011,551 |
Equity and other securities, cost | $ 46,511 | $ 42,965 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 53,754,599 | 51,974,726 |
Treasury stock, shares at cost (in shares) | 161,472 | 180,803 |
Shares held by deferred compensation arrangements (in shares) | 161,457 | 179,548 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||
Interest and fees on loans | $ 314,779 | $ 308,210 | $ 286,165 |
Interest and dividends on taxable investments | 62,538 | 65,904 | 63,504 |
Interest and dividends on nontaxable investments | 11,961 | 11,613 | 13,064 |
Total interest income | 389,278 | 385,727 | 362,733 |
Interest expense: | |||
Interest on deposits | 16,761 | 20,460 | 10,658 |
Interest on borrowings | 1,569 | 1,848 | 2,343 |
Interest on subordinated notes payable | 670 | 346 | 0 |
Interest on subordinated debt held by unconsolidated subsidiary trusts | 1,875 | 3,898 | 4,677 |
Total interest expense | 20,875 | 26,552 | 17,678 |
Net interest income | 368,403 | 359,175 | 345,055 |
Provision for credit losses | 14,212 | 8,430 | 10,837 |
Net interest income after provision for credit losses | 354,191 | 350,745 | 334,218 |
Noninterest revenues: | |||
Deposit service fees | 57,370 | 65,602 | 70,384 |
Mortgage banking | 5,301 | 523 | 1,400 |
Other banking services | 3,753 | 4,358 | 3,568 |
Employee benefit services | 101,329 | 97,167 | 92,279 |
Insurance services | 32,372 | 32,199 | 30,317 |
Wealth management services | 27,879 | 25,869 | 25,772 |
Unrealized (loss) gain on equity securities | (6) | 19 | 657 |
Gain (loss) on debt extinguishment | 421 | 0 | (318) |
Gain on sales of investment securities, net | 0 | 4,882 | 0 |
Total noninterest revenues | 228,419 | 230,619 | 224,059 |
Expenses: | |||
Salaries and employee benefits | 228,384 | 219,916 | 207,363 |
Occupancy and equipment | 40,732 | 39,850 | 39,948 |
Data processing and communications | 45,755 | 41,407 | 39,094 |
Amortization of intangible assets | 14,297 | 15,956 | 18,155 |
Legal and professional fees | 11,605 | 10,783 | 10,644 |
Business development and marketing | 9,463 | 11,416 | 9,383 |
Litigation accrual | 2,950 | 0 | 0 |
Acquisition expenses | 4,933 | 8,608 | (769) |
Other expenses | 18,415 | 24,090 | 21,471 |
Total noninterest expenses | 376,534 | 372,026 | 345,289 |
Income before income taxes | 206,076 | 209,338 | 212,988 |
Income taxes | 41,400 | 40,275 | 44,347 |
Net income | $ 164,676 | $ 169,063 | $ 168,641 |
Basic earnings per share (in dollars per share) | $ 3.10 | $ 3.26 | $ 3.28 |
Diluted earnings per share (in dollars per share) | $ 3.08 | $ 3.23 | $ 3.24 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension and other post retirement obligations: | |||
Amortization of actuarial gains (losses) included in net periodic pension cost, gross | $ 8,379 | $ (2,563) | $ (12,647) |
Tax effect | (2,012) | 605 | 3,087 |
Amortization of actuarial gains (losses) included in net periodic pension cost, net | 6,367 | (1,958) | (9,560) |
Amortization of prior service cost included in net periodic pension cost, gross | (471) | (115) | (1,398) |
Tax effect | 113 | 28 | 340 |
Amortization of prior service cost included in net periodic pension cost, net | (358) | (87) | (1,058) |
Initial projected benefit obligation recognized upon plan adoption, gross | 0 | 0 | (775) |
Tax effect | 0 | 0 | 189 |
Initial projected benefit obligation recognized upon plan adoption, net | 0 | 0 | (586) |
Other comprehensive income/(loss) related to pension and other post retirement obligations, net of taxes | 6,009 | (2,045) | (11,204) |
Unrealized gains/(losses) on available-for-sale securities: | |||
Net unrealized holding gains (losses) arising during period, gross | 87,237 | 53,988 | (39,894) |
Tax effect | (20,943) | (13,176) | 9,700 |
Net unrealized holding gains (losses) arising during period, net | 66,294 | 40,812 | (30,194) |
Reclassification of other comprehensive income due to change in accounting principle - equity securities | 0 | 0 | (208) |
Reclassification adjustment for net (gains) included in net income, gross | 0 | (4,882) | 0 |
Tax effect | 0 | 1,194 | 0 |
Reclassification adjustment for net (gains) included in net income, net | 0 | (3,688) | 0 |
Other comprehensive gain (loss) related to unrealized gains/(losses) on available-for-sale securities, net of taxes | 66,294 | 37,124 | (30,402) |
Other comprehensive income (loss), net of tax | 72,303 | 35,079 | (41,606) |
Net income | 164,676 | 169,063 | 168,641 |
Comprehensive income | 236,979 | 204,142 | 127,035 |
Accumulated Other Comprehensive Income/(Loss) By Component: | |||
Unrealized (loss) for pension and other postretirement obligations | (38,267) | (46,175) | (43,497) |
Tax effect | 9,394 | 11,293 | 10,660 |
Net unrealized (loss) for pension and other postretirement obligations | (28,873) | (34,882) | (32,837) |
Unrealized gain (loss) on available-for-sale securities | 120,114 | 32,877 | (16,229) |
Tax effect | (29,164) | (8,221) | 3,761 |
Net unrealized gain (loss) on available-for-sale securities | 90,950 | 24,656 | (12,468) |
Accumulated other comprehensive income (loss) | $ 62,077 | $ (10,226) | $ (45,305) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock Outstanding [Member] | Common Stock Amount Issued [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member]Cumulative Effect Adjustment [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss) [Member]Cumulative Effect Adjustment [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Treasury Stock [Member] | Deferred Compensation Arrangements [Member] | Cumulative Effect Adjustment [Member] | Total |
Balance at Dec. 31, 2017 | $ 51,264 | $ 894,879 | $ 700,557 | $ (3,699) | $ (21,014) | $ 13,328 | $ 1,635,315 | ||||
Balance (in shares) at Dec. 31, 2017 | 50,696,077 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 168,641 | 168,641 | |||||||||
Other comprehensive income/(loss), net of tax | (41,398) | (41,398) | |||||||||
Dividends declared: | |||||||||||
Common | (73,843) | (73,843) | |||||||||
Common stock issued under employee stock plans | 313 | 6,130 | 6,443 | ||||||||
Common stock issued under employee stock plan (in shares) | 312,998 | ||||||||||
Stock-based compensation | 6,064 | 6,064 | |||||||||
Distribution of stock under deferred compensation arrangements | 1,898 | (1,898) | 0 | ||||||||
Distribution of stock under deferred compensation arrangements (in shares) | 35,233 | ||||||||||
Treasury stock purchased | (298) | 298 | 0 | ||||||||
Treasury stock purchased (in shares) | (5,142) | ||||||||||
Treasury stock issued to benefit plan | 4,675 | 7,886 | 12,561 | ||||||||
Treasury stock issued to benefit plans, net (in shares) | 218,658 | ||||||||||
Balance at Dec. 31, 2018 | 51,577 | 911,748 | $ 208 | 795,563 | $ (208) | (45,305) | (11,528) | 11,728 | $ 0 | 1,713,783 | |
Balance (in shares) at Dec. 31, 2018 | 51,257,824 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 169,063 | 169,063 | |||||||||
Other comprehensive income/(loss), net of tax | 35,079 | 35,079 | |||||||||
Dividends declared: | |||||||||||
Common | (81,775) | (81,775) | |||||||||
Common stock issued under employee stock plans | 398 | 6,517 | 6,915 | ||||||||
Common stock issued under employee stock plan (in shares) | 397,887 | ||||||||||
Stock-based compensation | 5,285 | 5,285 | |||||||||
Distribution of stock under deferred compensation arrangements | 1,064 | 830 | (1,894) | 0 | |||||||
Distribution of stock under deferred compensation arrangements (in shares) | 32,431 | ||||||||||
Treasury stock purchased | (286) | 286 | 0 | ||||||||
Treasury stock purchased (in shares) | (4,576) | ||||||||||
Treasury stock issued to benefit plan | 2,723 | 4,161 | 6,884 | ||||||||
Treasury stock issued to benefit plans, net (in shares) | 110,357 | ||||||||||
Balance at Dec. 31, 2019 | 51,975 | 927,337 | 882,851 | (10,226) | (6,823) | 10,120 | 1,855,234 | ||||
Balance (in shares) at Dec. 31, 2019 | 51,793,923 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Net income | 164,676 | 164,676 | |||||||||
Other comprehensive income/(loss), net of tax | 72,303 | 72,303 | |||||||||
Dividends declared: | |||||||||||
Common | (88,484) | (88,484) | |||||||||
Common stock issued under employee stock plans | 417 | 15,375 | 15,792 | ||||||||
Common stock issued under employee stock plan (in shares) | 416,614 | ||||||||||
Stock-based compensation | 6,419 | 6,419 | |||||||||
Stock issued for acquisition | 1,363 | 75,579 | 76,942 | ||||||||
Stock issued for acquisition (in shares) | 1,363,259 | ||||||||||
Distribution of stock under deferred compensation arrangements | 415 | 849 | (1,264) | 0 | |||||||
Distribution of stock under deferred compensation arrangements (in shares) | 22,497 | ||||||||||
Treasury stock purchased | (271) | 271 | 0 | ||||||||
Treasury stock purchased (in shares) | (4,406) | ||||||||||
Treasury stock issued to benefit plan | 38 | 47 | 85 | ||||||||
Treasury stock issued to benefit plans, net (in shares) | 1,240 | ||||||||||
Balance at Dec. 31, 2020 | $ 53,755 | $ 1,025,163 | $ 1,140 | $ 960,183 | $ 62,077 | $ (6,198) | $ 9,127 | $ 1,140 | $ 2,104,107 | ||
Balance (in shares) at Dec. 31, 2020 | 53,593,127 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash dividends declared: | |||
Dividends declared per common share (in dollars per share) | $ 1.66 | $ 1.58 | $ 1.44 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net income | $ 164,676 | $ 169,063 | $ 168,641 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 15,963 | 15,891 | 15,749 |
Amortization of intangible assets | 14,297 | 15,956 | 18,155 |
Net accretion on securities, loans and borrowings | (11,353) | (6,176) | (9,404) |
Stock-based compensation | 6,419 | 5,285 | 6,064 |
Provision for credit losses | 14,212 | 8,430 | 10,837 |
(Benefit)/provision for deferred income taxes | (2,336) | (2,302) | 2,663 |
Amortization of mortgage servicing rights | 379 | 378 | 449 |
Unrealized loss/(gain) on equity securities | 6 | (19) | (657) |
(Gain)/loss on debt extinguishment | (421) | 0 | 318 |
Income from bank-owned life insurance policies | (1,915) | (1,678) | (1,579) |
Gain on sales of investment securities, net | 0 | (4,882) | 0 |
Net (gain)/loss on sale of loans and other assets | (3,505) | 11 | (80) |
Change in other assets and liabilities | (16,939) | 2,545 | 10,252 |
Net cash provided by operating activities | 179,483 | 202,502 | 221,408 |
Investing activities: | |||
Proceeds from sales of available-for-sale investment securities | 0 | 590,179 | 0 |
Proceeds from maturities, calls and paydowns of available-for-sale investment securities | 885,549 | 209,857 | 140,784 |
Proceeds from maturities and redemptions of equity and other securities | 516 | 3,995 | 5,867 |
Purchases of available-for-sale investment securities | (1,114,914) | (810,122) | (78,131) |
Purchases of equity and other securities | (3,234) | (202) | (31) |
Net (increase) decrease in loans | (185,131) | (140,382) | (35,414) |
Cash received /(paid) for acquisition, net of cash acquired of $55,973, $90,381, and $16, respectively | 34,360 | (4,653) | (1,737) |
Settlement of bank owned life insurance policies | 0 | 1,597 | 0 |
Purchases of premises and equipment, net | (14,395) | (5,686) | (12,646) |
Real estate limited partnership investments | (1,471) | (1,637) | (1,197) |
Net cash (used in)/provided by investing activities | (398,720) | (157,054) | 17,495 |
Financing activities: | |||
Net increase (decrease) in deposits | 1,713,733 | 104,435 | (122,049) |
Net increase/(decrease) in borrowings, net of payments of $3,092, $646, and $95 | 30,908 | (64,405) | (47,339) |
Payments on subordinated debt held by unconsolidated subsidiary trusts | (2,062) | (22,681) | (25,207) |
Payments on subordinated notes payable | (10,000) | 0 | 0 |
Issuance of common stock | 15,792 | 6,915 | 6,443 |
Purchase of treasury stock | (271) | (286) | (298) |
Sale of treasury stock | 85 | 6,884 | 12,561 |
Increase in deferred compensation agreements | 271 | 286 | 298 |
Cash dividends paid | (87,131) | (80,241) | (71,495) |
Withholding taxes paid on share-based compensation | (1,313) | (3,159) | (1,021) |
Net cash provided by/(used in) financing activities | 1,660,012 | (52,252) | (248,107) |
Change in cash and cash equivalents | 1,440,775 | (6,804) | (9,204) |
Cash and cash equivalents at beginning of year | 205,030 | 211,834 | 221,038 |
Cash and cash equivalents at end of year | 1,645,805 | 205,030 | 211,834 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 21,169 | 25,425 | 17,926 |
Cash paid for income taxes | 39,578 | 46,457 | 30,266 |
Supplemental disclosures of noncash financing activities | |||
Dividends declared and unpaid | 22,695 | 21,342 | 19,808 |
Transfers from loans to other real estate | 1,291 | 2,522 | 3,299 |
Acquisitions: | |||
Common stock issued | 76,942 | 0 | 0 |
Fair value of assets acquired, excluding acquired cash and intangibles | 547,654 | 548,856 | 115 |
Fair value of liabilities assumed | $ 529,431 | $ 589,733 | $ 31 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investing activities: | |||
Cash acquired related to acquisition | $ 55,973 | $ 90,381 | $ 16 |
Financing activities: | |||
Payment made on borrowings | $ 3,092 | $ 646 | $ 95 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Community Bank System, Inc. (the “Company”) is a registered financial holding company which wholly-owns two significant consolidated subsidiaries: Community Bank, N.A. (the “Bank” or “CBNA”), and Benefit Plans Administrative Services, Inc. (“BPAS”). As of December 31, 2020 BPAS owns five subsidiaries: Benefit Plans Administrative Services, LLC (“BPA”), a provider of defined benefit contribution plan administration services; Northeast Retirement Services, LLC (“NRS”), a provider of institutional transfer agency, master recordkeeping services, fund administration, trust and retirement plan services; BPAS Actuarial & Pension Services, LLC (“BPAS-APS”), a provider of actuarial and benefit consulting services; BPAS Trust Company of Puerto Rico, a Puerto Rican trust company; and Hand Benefits & Trust Company (“HB&T”), a provider of collective investment fund administration and institutional trust services. NRS owns one subsidiary, Global Trust Company, Inc. (“GTC”), a non-depository trust company which provides fiduciary services for collective investment trusts and other products. HB&T owns one subsidiary, Hand Securities Inc. (“HSI”), an introducing broker-dealer. The Company also wholly-owns one unconsolidated subsidiary business trust formed for the purpose of issuing mandatorily-redeemable preferred securities which are considered Tier I capital under regulatory capital adequacy guidelines (see Note P). As of December 31, 2020, the Bank operated 232 full service branches operating as Community Bank, N.A. throughout 42 counties of Upstate New York, six counties of Northeastern Pennsylvania, 12 counties of Vermont and one county of Western Massachusetts, offering a range of commercial and retail banking services. The Bank owns the following operating subsidiaries: The Carta Group, Inc. (“Carta Group”), CBNA Preferred Funding Corporation (“PFC”), CBNA Treasury Management Corporation (“TMC”), Community Investment Services, Inc. (“CISI”), Nottingham Advisors, Inc. (“Nottingham”), OneGroup NY, Inc. (“OneGroup”), OneGroup Wealth Partners, Inc. ("Wealth Partners") and Oneida Preferred Funding II LLC (“OPFC II”). OneGroup is a full-service insurance agency offering personal and commercial lines of insurance and other risk management products and services. PFC and OPFC II primarily act as investors in residential and commercial real estate activities. TMC provides cash management, investment, and treasury services to the Bank. CISI, Carta Group and Wealth Partners provide broker-dealer and investment advisory services. Nottingham provides asset management services to individuals, corporations, corporate pension and profit sharing plans, and foundations. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Variable Interest Entities (“VIE”) are legal entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the legal entities to finance its activities without additional subordinated financial support. VIEs may be required to be consolidated by a company if it is determined the company is the primary beneficiary of a VIE. The primary beneficiary of a VIE is the enterprise that has: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company’s VIE’s are described in more detail in Note T to the consolidated financial statements. Critical Accounting Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Critical accounting estimates include the allowance for credit losses, actuarial assumptions associated with the pension, post-retirement and other employee benefit plans, the provision for income taxes, investment valuation, the carrying value of goodwill and other intangible assets, and acquired loan valuations. Risk and Uncertainties In the normal course of its business, the Company encounters economic and regulatory risks. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different basis, from its interest-earning assets. The Company’s primary credit risk is the risk of default on the Company’s loan portfolio that results from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects potential changes in the value of collateral underlying loans, the fair value of investment securities, and loans held for sale. The Company is subject to regulations of various governmental agencies. These regulations can change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required credit loss allowances, and operating restrictions resulting from the regulators’ judgments based on information available to them at the time of their examinations. The extent to which the novel coronavirus ("COVID-19") impacts the Company's business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact national and international macroeconomic conditions including interest rates, unemployment rates, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2020 and through the date of this Annual Report on Form 10-K. The accounting matters assessed included, but were not limited to, the Company's allowance for credit losses, decrease in fee and interest income, and the carrying value of the goodwill and other long-lived assets. Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the newly adopted guidance. Topic 606 is applicable to the Company’s noninterest revenue streams including its deposit related fees, electronic payment interchange fees, merchant income, trust, asset management and other wealth management revenues, insurance commissions and benefit plan services income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Noninterest revenue streams in-scope of Topic 606 are discussed below. Deposit Service Fees Deposit service fees consist of account activity fees, monthly service fees, check orders, debit and credit card income, ATM fees, Merchant services income and other revenues from processing wire transfers, bill pay service, cashier’s checks and foreign exchange. Debit and credit card income is primarily comprised of interchange fees earned at the time the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. The Company’s performance obligation for deposit service fees is generally satisfied, and the related revenue recognized, when the services are rendered or the transaction has been completed. Payment for deposit service fees is typically received at the time it is assessed through a direct charge to customers’ accounts or on a monthly basis. Deposit service fees revenue primarily relates to the Company’s Banking operating segment. Other Banking Services Other banking services consists of other recurring revenue streams such as commissions from sales of credit life insurance, safe deposit box rental fees, mortgage banking income, bank owned life insurance income and other miscellaneous revenue streams. Commissions from the sale of credit life insurance are recognized at the time of sale of the policies. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Mortgage banking income and bank owned life insurance income are not within the scope of Topic 606. Other banking services revenue primarily relates to the Company’s Banking operating segment. Employee Benefit Services Employee benefit services income consists of revenue received from retirement plan services, collective investment fund services, fund administration, transfer agency, consulting and actuarial services. The Company’s performance obligation that relates to plan services are satisfied over time and the resulting fees are recognized monthly or quarterly, based upon the market value of the assets under management and the applicable fee rate or on a time expended basis. Payment is generally received a few days after month end or quarter end. The Company does not earn performance-based incentives. Transactional services such as consulting services, mailings, or other ad hoc services are provided to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Employee benefit services revenue primarily relates to the Company’s Employee Benefit Services operating segment. Insurance Services Insurance services primarily consists of commissions received on insurance product sales and consulting services. The Company acts in the capacity of a broker or agent between the Company’s customer and the insurance carrier. The Company’s performance obligation related to insurance sales for both property and casualty insurance and employee benefit plans is generally satisfied upon the later of the issuance or effective date of the policy. The Company’s performance obligation related to consulting services is considered transactional in nature and is generally satisfied when the services have been completed and related revenue recognized at a point in time. Payment is received at the time services are rendered. The Company earns performance based incentives, commonly known as contingency payments, which usually are based on certain criteria established by the insurance carrier such as premium volume, growth and insured loss ratios. Contingent payments are accrued for based upon management’s expectations for the year. Commission expense associated with sales of insurance products is expensed as incurred. Insurance services revenue primarily relates to the Company’s All Other operating segment. Wealth Management Services Wealth management services income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company generally has two types of performance obligations related to these services. The Company’s performance obligation that relates to advisory and administration services are satisfied over time and the resulting fees are recognized monthly, based upon the market value of the assets under management and the applicable fee rate. Payment is generally received soon after month end or quarter end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Transactional services such as tax return preparation services, purchases and sales of investments and insurance products are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e. as incurred). Payment is generally received on a monthly basis. Wealth management services revenue primarily relates to the Company’s All Other operating segment. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2020, $30.3 million of accounts receivable, including $7.7 million of unbilled fee revenue, and $1.4 million of unearned revenue was recorded in the consolidated statements of condition. As of December 31, 2019, $26.8 million of accounts receivable, including $7.5 million of unbilled fee revenue, and $1.8 million of unearned revenue was recorded in the consolidated statements of condition. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient method which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and highly liquid investments with original maturities of less than 90 days. The carrying amounts reported in the consolidated statements of condition for cash and cash equivalents approximate those assets’ fair values. As of December 31, 2020 and 2019, cash and cash equivalents reported in the consolidated statements of condition included cash due from banks of $7.7 million and $10.4 million, respectively. Cash due from banks may at times exceed federally insured limits. Investment Securities The Company can classify its investments in debt securities as held-to-maturity, available-for-sale, or trading. Held-to-maturity securities are those for which the Company has the positive intent and ability to hold until maturity, and are reported at cost, which is adjusted for amortization of premiums and accretion of discounts. The Company did not use the held-to-maturity classification in 2019 or 2020. Available-for-sale debt securities are reported at fair value with net unrealized gains and losses reflected as a separate component of shareholders’ equity, net of applicable income taxes. None of the Company’s investment securities have been classified as trading securities at December 31, 2020 or December 31, 2019. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses are recorded on the trade date and determined using the specific identification method. Equity securities with a readily determinable fair value are reported at fair value with net unrealized gains and losses recognized in the consolidated statements of income. Certain equity securities that do not have a readily determinable fair value are stated at cost, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. These securities include restricted stock of the Federal Reserve Bank of New York (“Federal Reserve”) and the Federal Home Loan Bank of New York and the Federal Home Loan Bank of Boston (collectively referred to as “FHLB”), as well as other equity securities. Fair values for investment securities are based upon quoted market prices, where available. If quoted market prices are not available, fair values are based upon quoted market prices of comparable instruments, or a discounted cash flow model using market estimates of interest rates and volatility. Allowance for Credit Losses – Debt Securities For held-to-maturity debt securities, the Company measures expected credit losses on a collective basis by major security type. The estimates of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on held-to-maturity securities is excluded from the estimates of credit losses. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the security structure, recent security collateral performance metrics, if applicable, external credit ratings, failure of the issuer to make scheduled interest or principal payments, judgment about and expectations of future performance, and relevant independent industry research, analysis, and forecasts. The severity of the impairment and the length of time the security has been impaired is also considered in the assessment. This assessment involves a high degree of subjectivity and judgment that is based on the information available to management at a point in time. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected from the security is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit losses in the consolidated statements of income. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $13.3 million at December 31, 2020 and is excluded from the estimate of credit losses. Prior to the adoption of ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of allowance for credit losses. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Mortgage loans held for sale are carried at fair value and are included in loans held for sale on the consolidated statements of condition. Fair values for variable rate loans that reprice frequently are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest approximates its fair value. Interest on loans is accrued and credited to operations based upon the principal amount outstanding. Nonrefundable loan fees and related direct costs are deferred and included in the loan balances where they are amortized over the life of the loan as an adjustment to loan yield using the effective yield method. Premiums and discounts on purchased loans are amortized using the effective yield method over the life of the loans. Accrued interest receivable on loans, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $22.2 million at December 31, 2020 and is excluded from the estimate of credit losses and amortized cost basis of loans. An allowance for credit losses is not measured for accrued interest receivable on loans as the Company writes off the uncollectible accrued interest balance in a timely manner upon recognition of credit deterioration of the underlying loan. The Company places a loan on nonaccrual status when the loan becomes 90 days past due (or sooner, if management concludes collection is doubtful), except when, in the opinion of management, it is well-collateralized and in the process of collection. A loan may be placed on nonaccrual status earlier than 90 days past due if there is deterioration in the financial position of the borrower or if other conditions of the loan so warrant. When a loan is placed on nonaccrual status, uncollected accrued interest is reversed against interest income and the amortization of nonrefundable loan fees and related direct costs is discontinued. Interest income during the period the loan is on nonaccrual status is recorded on a cash basis after recovery of principal is reasonably assured. Nonaccrual loans are returned to accrual status when management determines that the borrower’s performance has improved and that both principal and interest are collectible. This generally requires a sustained period of timely principal and interest payments and a well-documented credit evaluation of the borrower’s financial condition. The Company’s charge-off policy by loan type is as follows: ● Business lending loans are generally charged-off to the extent outstanding principal exceeds the fair value of estimated proceeds from collection efforts, including liquidation of collateral. The charge-off is recognized when the loss becomes reasonably quantifiable. ● Consumer installment loans are generally charged-off to the extent outstanding principal exceeds the fair value of collateral, and are recognized by the end of the month in which the loan becomes 90 days past due. ● Consumer mortgage and home equity loans are generally charged-off to the extent outstanding principal exceeds the fair value of the property, less estimated costs to sell, and are recognized when the loan becomes 180 days past due. Allowance for Credit Losses – Loans The allowance for credit losses is a valuation account that is netted against the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, acquired loans, delinquency level, risk ratings or term of loans as well as changes in macroeconomic conditions, such as changes in unemployment rates, property values such as home prices, commercial real estate prices and automobile prices, gross domestic product, recession probability, and other relevant factors. The segments of the Company's loan portfolio are disaggregated into the following classes that allow management to monitor risk and performance: ● Business lending is comprised of general purpose commercial and industrial loans including, but not limited to agricultural-related and dealer floor plans, loans to not-for-profit enterprises, as well as mortgages on commercial property and Paycheck Protection Program ("PPP") loans. The portfolio segment is further broken into portfolio classes based on risks associated with the collateral supporting the loans. Each class of business lending can also have different payment structures. Business lending loans are generally higher dollar loans and a large portion are risk rated at least annually. ● Consumer mortgages consist primarily of fixed rate residential instruments, typically 10 - 30 years in contractual term, secured by first liens on real property. FICO scores are used to monitor higher risks related to this type of lending with FICO AB referring to higher tiered loans with FICO scores greater than or equal to 720 as compared to FICO CDE with lower FICO scores less than 720 and potentially higher risk. ● Consumer indirect consists primarily of installment loans originated through selected dealerships and are generally secured by automobiles, marine and other recreational vehicles. Collateral securing the loans was used to further disaggregate this portfolio as charge-offs can vary depending on the purpose of the loan. Non-auto loans often have longer terms, and generally have higher risk due to declines in collateral value given the nature of the property. ● Consumer direct consists of all other loans to consumers such as personal installment loans and check credit lines of credit. ● Home equity products are installment loans or lines of credit most often secured by a first or second lien position on residential real estate with terms up to 30 years. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist, including collateral type, credit ratings/scores, size, duration, interest rate structure, industry, geography, origination vintage, and payment structure. The Company has identified the following portfolio segments and classes and measures the allowance for credit losses using the following methods: Loan Portfolio Segment Loan Portfolio Class Allowance for Credit Losses Methodology Business lending Commercial real estate multi family Cumulative loss rate Business lending Commercial real estate non-owner occupied Cumulative loss rate Business lending Commercial real estate owner occupied Cumulative loss rate Business lending Commercial and industrial loans Vintage loss rate Business lending Commercial and industrial lines of credit Line loss Business lending Municipal Cumulative loss rate Business lending Other business Cumulative loss rate Business lending Paycheck Protection Program Cumulative loss rate Consumer mortgage Consumer mortgage FICO AB Cumulative loss rate Consumer mortgage Consumer mortgage FICO CDE Cumulative loss rate Consumer indirect Indirect new auto Vintage loss rate Consumer indirect Indirect used auto Vintage loss rate Consumer indirect Indirect non-auto Vintage loss rate Consumer direct Consumer check credit Line loss Consumer direct Consumer direct Vintage loss rate Home equity Home equity fixed rate Vintage loss rate Home equity Home equity lines of credit Line loss The cumulative loss rate method uses historical loss data applied against multiple pools of loans and uses a quantitatively based management overlay in order to capture the risk for a loan's entire expected life. These loss rates are then applied to current balances to achieve a required reserve before qualitative adjustments. The line loss method calculates the quantitative required reserve for lines of credit. This method contains several different underlying calculations including average annual loss rate, pay-down rate, cumulative loss, average draw percentage, and undrawn liability reserve. The vintage loss rate method calculates annual loss rates by origination year. The results of this model are then applied to outstanding balances, which correspond to the origination period for each annual loss rate. In addition to the risk characteristics noted above, management considers the portion of acquired loans to the overall segment balance, as well as current delinquency and charge-off trends compared to historical time periods. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Expected credit losses are estimated over the contractual term of the loans and adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Certain business lending, consumer direct, and home equity loans do not have stated maturities. In determining the estimated life of these loans, management first estimates the future cash flows expected to be received and then applies those expected future cash flows to the balance. Expected credit losses for lines of credit with no stated maturity are determined by estimating the amount and timing of all principal payments expected to be received after the reporting period and allocating those principal payments between the balance outstanding as of the reporting period and the balance of future receivables expected to be originated through subsequent usage of the unconditionally cancellable loan commitment associated with the account until the expected payments have been fully allocated. An additional allowance for credit loss is recorded for the excess of the balance outstanding as of the reporting period over the expected principal payments allocated to that balance. Prior to the adoption of ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructuring A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial d |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE B: ACQUISITIONS On June 12, 2020, the Company completed its merger with Steuben Trust Corporation (“Steuben”), parent company of Steuben Trust Company, a New York State chartered bank headquartered in Hornell, New York, for $98.6 million in Company stock and cash, comprised of $21.6 million in cash and the issuance of 1.36 million shares of common stock. The merger extended the Company’s footprint into two new counties in Western New York State, and enhanced the Company’s presence in four Western New York State counties in which it currently operates. In connection with the merger, the Company added 11 full-service offices to its branch service network and acquired $607.8 million of assets, including $339.7 million of loans and $180.5 million of investment securities, as well as $516.3 million of deposits. Goodwill of $20.2 million was recognized as a result of the merger. The effects of the acquired assets and liabilities have been included in the consolidated financial statements since that date. Revenues, excluding interest income on acquired investments, interest income on acquired consumer indirect loans, and revenues associated with acquired loans and deposits consolidated into the legacy branch network, of approximately $7.7 million, and direct expenses, which may not include certain shared expenses, of approximately $2.6 million from Steuben were included in the consolidated income statement for the year ended December 31, 2020. The Company incurred certain one-time, transaction-related costs in 2020 in connection with the Steuben acquisition. On September 18, 2019, the Company, through its subsidiary, CISI, completed its acquisition of certain assets of a practice engaged in the financial services business headquartered in Syracuse, New York. The Company paid $0.5 million in cash to acquire a customer list, and recorded a $0.5 million customer list intangible asset in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. On July 12, 2019, the Company completed its merger with Kinderhook Bank Corp. (“Kinderhook”), parent company of The National Union Bank of Kinderhook, headquartered in Kinderhook, New York, for $93.4 million in cash. The merger added 11 branch locations across a five county area in the Capital District of Upstate New York. The merger resulted in the acquisition of $642.8 million of assets, including $479.9 million of loans and $39.8 million of investment securities, as well as $568.2 million of deposits and $40.0 million in goodwill. The effects of the acquired assets and liabilities have been included in the consolidated financial statements since that date. Revenues, excluding interest income on acquired investments, of approximately $16.3 million, and direct expenses, which may not include certain shared expenses, of approximately $7.4 million from Kinderhook were included in the consolidated income statement for the year ended December 31, 2020. Revenues, excluding interest income on acquired investments, of approximately $10.6 million, and direct expenses, which may not include certain shared expenses, of approximately $4.7 million from Kinderhook were included in the consolidated income statement for the year ended December 31, 2019. On January 2, 2019, the Company, through its subsidiary, CISI, completed its acquisition of certain assets of Wealth Resources Network, Inc. (“Wealth Resources”), a financial services business headquartered in Liverpool, New York. The Company paid $1.2 million in cash to acquire a customer list from Wealth Resources, and recorded a $1.2 million customer list intangible asset in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. On April 2, 2018, the Company, through its subsidiary, BPAS, acquired certain assets of HR Consultants (SA), LLC (“HR Consultants”), a provider of actuarial and benefit consulting services headquartered in Puerto Rico. The Company paid $0.3 million in cash to acquire the assets of HR Consultants and recorded intangible assets of $0.3 million in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. On January 2, 2018, the Company, through its subsidiary, OneGroup, completed its acquisition of certain assets of Penna & Associates Agency, Inc. (“Penna”), an insurance agency headquartered in Johnson City, New York. The Company paid $0.8 million in cash to acquire the assets of Penna, and recorded goodwill in the amount of $0.3 million and a customer list intangible asset of $0.3 million in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. On January 2, 2018, the Company, through its subsidiary, CISI, completed its acquisition of certain assets of Styles Bridges Associates (“Styles Bridges”), a financial services business headquartered in Canton, New York. The Company paid $0.7 million in cash to acquire a customer list from Styles Bridges, and recorded a $0.7 million customer list intangible asset in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. The assets and liabilities assumed in the acquisitions were recorded at their estimated fair values based on management’s best estimates using information available at the dates of the acquisitions, and were subject to adjustment based on updated information not available at the time of the acquisitions. During the first quarter of 2020, the carrying amount of other liabilities associated with the Kinderhook acquisition decreased by $0.3 million as a result of an adjustment to accrued income taxes and deferred income taxes. Goodwill associated with the Kinderhook acquisition decreased $0.3 million as a result of this adjustment. During the third quarter of 2020, associated with the Steuben acquisition, the carrying amount of loans decreased by $0.2 million, premises and equipment decreased by $0.5 million, other assets decreased by $1.7 million, and accrued interest and other liabilities decreased by $1.3 million as a result of updated information not available at the time of acquisition. Goodwill associated with the Steuben acquisition increased $1.1 million as a result of these adjustments. During the fourth quarter of 2020, associated with the Steuben acquisition, the carrying amount of other assets increased by $0.04 million, accrued interest and fees receivable decreased by $0.01 million and other liabilities decreased by $0.01 million as a result of updated information not available at the time of acquisition. Goodwill associated with the Steuben acquisition decreased $0.04 million as a result of these adjustments. The above referenced acquisitions generally expanded the Company’s geographical presence in New York and management expects that the Company will benefit from greater geographic diversity and the advantages of other synergistic business development opportunities. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed after considering the measurement period adjustments described above: 2020 2019 2018 (000s omitted) Steuben Kinderhook Other (1) Total Other (2) Consideration paid : Cash $ 21,613 $ 93,384 $ 1,650 $ 95,034 $ 1,753 Community Bank System, Inc. common stock 76,942 0 0 0 0 Total net consideration paid 98,555 93,384 1,650 95,034 1,753 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 55,973 90,381 0 90,381 16 Investment securities 180,497 39,770 0 39,770 0 Loans, net of allowance for credit losses on PCD loans (3) 339,017 479,877 0 479,877 0 Premises and equipment, net 7,764 13,970 0 13,970 10 Accrued interest and fees receivable 2,701 1,130 0 1,130 0 Other assets 17,675 14,109 0 14,109 105 Core deposit intangibles 2,928 3,573 0 3,573 0 Other intangibles 1,196 0 1,650 1,650 1,343 Deposits (516,274) (568,161) 0 (568,161) 0 Other liabilities (5,095) (2,922) 0 (2,922) (31) Other Federal Home Loan Bank borrowings (6,000) (2,420) 0 (2,420) 0 Subordinated notes payable 0 (13,831) 0 (13,831) 0 Subordinated debt held by unconsolidated subsidiary trusts (2,062) (2,062) 0 (2,062) 0 Total identifiable assets, net 78,320 53,414 1,650 55,064 1,443 Goodwill $ 20,235 $ 39,970 $ 0 $ 39,970 $ 310 (1) Includes amounts related to both acquisitions completed by CISI in 2019. (2) Includes amounts related to the Penna, Styles Bridges and HR Consultants acquisitions. (3) Acquisition-related allowance for credit losses on purchased credit deteriorated ("PCD") loans applicable beginning in 2020. Under ASC 310-30, acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments were aggregated by comparable characteristics and recorded at fair value without a carryover of the related allowance for credit losses. Cash flows for each loan were determined using an estimate of credit losses and rate of prepayments. Projected monthly cash flows were then discounted to present value using a market-based discount rate. The excess of the undiscounted expected cash flows over the estimated fair value is referred to as the “accretable yield” and is recognized into interest income over the remaining lives of the acquired loans. On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) The Company has acquired loans from Steuben for which there was evidence of a more-than-insignificant deterioration in credit quality since origination. There were no investment securities acquired from Steuben for which there was evidence of a more-than-insignificant deterioration in credit quality since origination. The carrying amount of those loans is as follows at the date of acquisition: (000s omitted) PCD Loans Par value of PCD loans at acquisition $ 35,906 Allowance for credit losses at acquisition (668) Non-credit premium at acquisition 103 Fair value of PCD loans at acquisition $ 35,341 The following is a summary of the remaining loans acquired from Steuben for which there was no evidence of a more-than-insignificant deterioration in credit quality since origination at the date of acquisition: (000s omitted) Non-PCD Loans Contractually required principal and interest at acquisition $ 400,738 Contractual cash flows not expected to be collected (2,994) Expected cash flows at acquisition 397,744 Interest component of expected cash flows (94,068) Fair value of non-PCD loans at acquisition $ 303,676 The following is a summary of the loans acquired from Kinderhook at the date of acquisition: Acquired Acquired Total Impaired Non-impaired Acquired (000s omitted) Loans Loans Loans Contractually required principal and interest at acquisition $ 13,350 $ 636,384 $ 649,734 Contractual cash flows not expected to be collected (4,176) (5,472) (9,648) Expected cash flows at acquisition 9,174 630,912 640,086 Interest component of expected cash flows (551) (159,658) (160,209) Fair value of acquired loans $ 8,623 $ 471,254 $ 479,877 The fair value of the Company’s common stock issued for the Steuben acquisition was determined using the market close price of the stock on June 12, 2020. The fair value of checking, savings and money market deposit accounts acquired were assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. Certificate of deposit accounts were valued at the present value of the certificates’ expected contractual payments discounted at market rates for similar certificates. The fair value of subordinated notes payable was estimated using discounted cash flows and interest rates being offered on similar securities. Subordinated notes payable assumed with the Kinderhook acquisition included $3.0 million of subordinated notes with a fixed interest rate of 6.0% maturing in February 2028 November 2025 The core deposit intangibles and other intangibles related to the Steuben acquisition, both acquisitions completed by CISI in 2019, Kinderhook, Penna, Styles Bridges and HR Consultants acquisitions are being amortized using an accelerated method over their estimated usefu . The goodwill, which is not amortized for book purposes, was assigned to the Banking segment for the Steuben and Kinderhook acquisitions and All Other segment for the Penna acquisition. Goodwill arising from the Steuben and Kinderhook acquisitions is not deductible for tax purposes. Goodwill arising from the Penna acquisition is deductible for tax purposes. Direct costs related to the acquisitions were expensed as incurred. Merger and acquisition integration-related expenses (recoveries) amount to $4.9 million, $8.6 million and $(0.8) million during 2020, 2019 and 2018, respectively, and have been separately stated in the consolidated statements of income. Supplemental Pro Forma Financial Information (Unaudited) The following unaudited condensed pro forma information assumes the Steuben acquisition had been completed as of January 1, 2019 for the year ended December 31, 2020 and December 31, 2019 and the Kinderhook acquisitions had been completed as of January 1, 2018 for the year ended December 31, 2019 and December 31, 2018. The pro forma information does not include amounts related to the two acquisitions completed by CISI in 2019 and Penna, Styles Bridges and HR Consultants acquisitions completed in 2018, as the amounts were immaterial. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisitions occurred as of the beginning of the year presented, nor is it indicative of the Company’s future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of the acquisitions. The pro forma information set forth below reflects the historical results of Steuben and Kinderhook combined with the Company’s consolidated statement of income with adjustments related to (a) certain purchase accounting fair value adjustments and (b) amortization of customer lists and core deposit intangibles. Acquisition expenses related to the Steuben transaction totaling $4.8 million for the year ended December 31, 2020 were included in the pro forma information as if they were incurred in 2019. Acquisition expenses related to the Kinderhook transaction totaling $8.0 million for the year ended December 31, 2019 were included in the pro forma information as if they were incurred in 2018. Pro Forma (Unaudited) Year Ended December 31, (000s omitted) 2020 2019 2018 Total revenue, net of interest expense $ 607,382 $ 626,229 $ 594,174 Net income 171,147 180,237 167,914 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE C: INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities as of December 31 are as follows: 2020 2019 Gross Gross Gross Gross Amortized Unrealized Unrealized Estimated Amortized Unrealized Unrealized Estimated (000's omitted) Cost Gains Losses Fair Value Cost Gains Losses Fair Value Available-for-Sale Portfolio: U.S. Treasury and agency securities $ 2,423,236 $ 94,741 $ 16,595 $ 2,501,382 $ 2,030,060 $ 21,674 $ 7,975 $ 2,043,759 Obligations of state and political subdivisions 451,028 24,632 0 475,660 497,852 14,382 26 512,208 Government agency mortgage-backed securities 506,540 16,280 182 522,638 428,491 5,478 1,107 432,862 Corporate debt securities 4,499 137 1 4,635 2,527 1 0 2,528 Government agency collateralized mortgage obligations 42,476 1,111 10 43,577 52,621 482 32 53,071 Total available-for-sale portfolio $ 3,427,779 $ 136,901 $ 16,788 $ 3,547,892 $ 3,011,551 $ 42,017 $ 9,140 $ 3,044,428 Equity and other Securities: Equity securities, at fair value $ 251 $ 194 $ 0 $ 445 $ 251 $ 200 $ 0 $ 451 Federal Home Loan Bank common stock 7,468 0 0 7,468 7,246 0 0 7,246 Federal Reserve Bank common stock 33,916 0 0 33,916 30,922 0 0 30,922 Other equity securities, at adjusted cost 4,876 750 0 5,626 4,546 750 0 5,296 Total equity and other securities $ 46,511 $ 944 $ 0 $ 47,455 $ 42,965 $ 950 $ 0 $ 43,915 A summary of investment securities that have been in a continuous unrealized loss position for less than or greater than twelve months is as follows: As of December 31, 2020 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Unrealized Unrealized Unrealized (000's omitted) # Fair Value Losses # Fair Value Losses # Fair Value Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 13 $ 831,015 $ 16,595 0 $ 0 $ 0 13 $ 831,015 $ 16,595 Obligations of state and political subdivisions 1 358 0 0 0 0 1 358 0 Government agency mortgage-backed securities 89 75,992 182 2 14 0 91 76,006 182 Corporate debt securities 1 1,001 1 0 0 0 1 1,001 1 Government agency collateralized mortgage obligations 13 5,246 10 1 0 0 14 5,246 10 Total available-for-sale investment portfolio 117 $ 913,612 $ 16,788 3 $ 14 $ 0 120 $ 913,626 $ 16,788 As of December 31, 2019 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Unrealized Unrealized Unrealized (000's omitted) # Fair Value Losses # Fair Value Losses # Fair Value Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 12 $ 592,678 $ 7,970 5 $ 25,998 $ 5 17 $ 618,676 $ 7,975 Obligations of state and political subdivisions 21 22,716 26 0 0 0 21 22,716 26 Government agency mortgage-backed securities 50 89,237 341 52 52,975 766 102 142,212 1,107 Government agency collateralized mortgage obligations 5 5,971 14 5 4,405 18 10 10,376 32 Total available-for-sale investment portfolio 88 $ 710,602 $ 8,351 62 $ 83,378 $ 789 150 $ 793,980 $ 9,140 The unrealized losses reported pertaining to securities issued by the U.S. government and its sponsored entities, include treasuries, agencies, and mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, which are currently rated AAA by Moody’s Investor Services, AA+ by Standard & Poor’s and are guaranteed by the U.S. government. The majority of the obligations of state and political subdivisions and corporations carry a credit rating of A or better. Additionally, a majority of the obligations of state and political subdivisions carry a secondary level of credit enhancement. The Company holds one corporate debt security in an unrealized loss position which is currently rated A- or better and the issuer of the security shows a low risk of default. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost. Timely principal and interest payments continue to be made on the securities. The unrealized losses in the portfolios are primarily attributable to changes in interest rates. As such, management does not believe any individual unrealized loss as of December 31, 2020 represents credit losses and no unrealized losses have been recognized in the provision for credit losses. Accordingly, there is no allowance for credit losses on the Company’s available-for-sale portfolio as of December 31, 2020. As of December 31, 2019, management did not believe any individual unrealized loss represents other-than-temporary impairment. The amortized cost and estimated fair value of debt securities at December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-Sale Amortized (000's omitted) Cost Fair Value Due in one year or less $ 215,400 $ 217,938 Due after one through five years 732,939 768,761 Due after five years through ten years 460,678 496,977 Due after ten years 1,469,746 1,498,001 Subtotal 2,878,763 2,981,677 Government agency mortgage-backed securities 506,540 522,638 Government agency collateralized mortgage obligations 42,476 43,577 Total $ 3,427,779 $ 3,547,892 Investment securities with a carrying value of $2.03 billion and $1.47 billion at December 31, 2020 and 2019, respectively, were pledged to collateralize certain deposits and borrowings. Securities pledged to collateralize certain deposits and borrowings included $473.4 million and $502.8 million of U.S. Treasury securities that were pledged as collateral for securities sold under agreement to repurchase at December 31, 2020, and 2019, respectively. All securities sold under agreement to repurchase as of December 31, 2020 and 2019 have an overnight and continuous maturity. During 2019, the Company sold $590.2 million of U.S. Treasury and agency securities, recognizing $5.0 million of gross realized gains and $0.1 million of gross realized losses. There were no sales of investment securities in 2020 and 2018. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2020 | |
LOANS | |
LOANS | NOTE D: LOANS The segments of the Company’s loan portfolio at December 31 are summarized as follows: (000’s omitted) 2020 2019 Business lending $ 3,440,077 $ 2,775,876 Consumer mortgage 2,401,499 2,430,902 Consumer indirect 1,021,885 1,113,062 Consumer direct 152,657 184,378 Home equity 399,834 386,325 Gross loans, including deferred origination costs 7,415,952 6,890,543 Allowance for credit losses (60,869) (49,911) Loans, net of allowance for credit losses $ 7,355,083 $ 6,840,632 The Company had approximately $25.5 million and $32.3 million of net deferred loan origination costs included in gross loans as of December 31, 2020 and 2019, respectively. Certain directors and executive officers of the Company, as well as associates of such persons, are loan customers. Loans to these individuals were made in the ordinary course of business under normal credit terms and do not have more than a normal risk of collection. Following is a summary of the aggregate amount of such loans during 2020 and 2019. (000’s omitted) 2020 2019 Balance at beginning of year $ 17,486 $ 20,661 New loans 4,194 5,720 Payments (6,131) (8,895) Balance at end of year $ 15,549 $ 17,486 The following table presents the aging of the amortized cost basis of the Company’s past due loans, including purchased credit deteriorated (“PCD”) loans, by segment as of December 31, 2020: Past Due 90+ Days Past 30 – 89 Due and Total (000’s omitted) Days Still Accruing Nonaccrual Past Due Current Total Loans Business lending $ 4,896 $ 59 $ 55,709 $ 60,664 $ 3,379,413 $ 3,440,077 Consumer mortgage 13,236 3,051 14,970 31,257 2,370,242 2,401,499 Consumer indirect 13,161 219 1 13,381 1,008,504 1,021,885 Consumer direct 1,170 28 3 1,201 151,456 152,657 Home equity 2,296 565 2,246 5,107 394,727 399,834 Total $ 34,759 $ 3,922 $ 72,929 $ 111,610 $ 7,304,342 $ 7,415,952 The following is an aged analysis of the Company’s past due loans by segment as of December 31, 2019: Legacy Loans Past Due 90+ Days Past 30 – 89 Due and Total (000’s omitted) days Still Accruing Nonaccrual Past Due Current Total Loans Business lending $ 3,936 $ 126 $ 3,840 $ 7,902 $ 1,848,683 $ 1,856,585 Consumer mortgage 10,990 2,052 10,131 23,173 1,973,543 1,996,716 Consumer indirect 12,673 125 0 12,798 1,094,510 1,107,308 Consumer direct 1,455 76 0 1,531 174,445 175,976 Home equity 1,508 328 1,444 3,280 310,727 314,007 Total $ 30,562 $ 2,707 $ 15,415 $ 48,684 $ 5,401,908 $ 5,450,592 Acquired Loans Past Due 90+ Days Past 30 – 89 Due and Total Acquired (000’s omitted) days Still Accruing Nonaccrual Past Due Impaired (1) Current Total Loans Business lending $ 8,518 $ 2,173 $ 570 $ 11,261 $ 11,797 $ 896,233 $ 919,291 Consumer mortgage 890 277 2,386 3,553 0 430,633 434,186 Consumer indirect 79 31 0 110 0 5,644 5,754 Consumer direct 59 0 52 111 0 8,291 8,402 Home equity 744 238 412 1,394 0 70,924 72,318 Total $ 10,290 $ 2,719 $ 3,420 $ 16,429 $ 11,797 $ 1,411,725 $ 1,439,951 (1) Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans. The delinquency status for loans on payment deferment due to COVID-19 financial hardship were reported at December 31, 2020 based on their delinquency status at the execution date of the payment deferment, unless subsequent to the execution date of the payment deferment, the borrower made all required past due payments to bring the loan to current status. No interest income on nonaccrual loans was recognized during the year ended December 31, 2020 or December 31, 2019. The Company wrote off $1.5 million of accrued interest on nonaccrual loans by reversing interest income in 2020 primarily due to the reversal of accrued interest on business lending loans of certain commercial borrowers, which primarily operate in the hospitality, travel and entertainment industries, who requested and were granted further extensions of existing loan repayment forbearance due to the continued pandemic-related financial hardship they were experiencing, which were reclassified from accruing to nonaccrual status. An immaterial amount of accrued interest was written off on nonaccrual loans by reversing interest income in 2019. The Company uses several credit quality indicators to assess credit risk in an ongoing manner. The Company’s primary credit quality indicator for its business lending portfolio is an internal credit risk rating system that categorizes loans as “pass”, “special mention”, “classified”, or “doubtful”. Credit risk ratings are applied individually to those classes of loans that have significant or unique credit characteristics that benefit from a case-by-case evaluation. Loans that were granted initial COVID-19 related financial hardship payment deferrals were not automatically downgraded into lower credit risk ratings, but will continue to be monitored for indications of deterioration that could result in future downgrades. In general, the following are the definitions of the Company’s credit quality indicators: Pass The condition of the borrower and the performance of the loans are satisfactory or better. Special Mention The condition of the borrower has deteriorated although the loan performs as agreed. Loss may be incurred at some future date, if conditions deteriorate further. Classified The condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate and incur loss, if deficiencies are not corrected. Doubtful The condition of the borrower has deteriorated to the point that collection of the balance is improbable based on current facts and conditions and loss is likely. The following tables show the amount of business lending loans by credit quality category at December 31, 2020 and December 31, 2019: Revolving Loans (000’s omitted) Term Loans Amortized Cost Basis by Origination Year Amortized December 31, 2020 2020 2019 2018 2017 2016 Prior Cost Basis Total Business lending: Risk rating Pass $ 860,178 $ 351,350 $ 312,087 $ 217,138 $ 231,453 $ 543,999 $ 483,018 $ 2,999,223 Special mention 14,687 36,041 28,410 21,875 29,386 51,657 52,732 234,788 Classified 6,336 4,560 30,422 24,807 14,891 65,157 56,000 202,173 Doubtful 0 18 2,888 0 0 108 879 3,893 Total business lending $ 881,201 $ 391,969 $ 373,807 $ 263,820 $ 275,730 $ 660,921 $ 592,629 $ 3,440,077 December 31, 2019 (000’s omitted) Legacy Acquired Total Pass $ 1,655,280 $ 832,693 $ 2,487,973 Special mention 98,953 45,324 144,277 Classified 102,352 29,477 131,829 Doubtful 0 0 0 Acquired impaired 0 11,797 11,797 Total $ 1,856,585 $ 919,291 $ 2,775,876 All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis. These are typically loans to individuals in the consumer categories and are delineated as either performing or nonperforming. Performing loans include loans classified as current as well as those classified as 30 - 89 days past due. Nonperforming loans include 90+ days past due and still accruing and nonaccrual loans. The following table details the balances in all other loan categories at December 31, 2020: Revolving Loans (000’s omitted) Term Loans Amortized Cost Basis by Origination Year Amortized December 31, 2020 2020 2019 2018 2017 2016 Prior Cost Basis Total Consumer mortgage: FICO AB Performing $ 260,588 $ 227,027 $ 166,638 $ 163,653 $ 160,911 $ 614,976 $ 321 $ 1,594,114 Nonperforming 0 0 275 398 345 2,709 0 3,727 Total FICO AB 260,588 227,027 166,913 164,051 161,256 617,685 321 1,597,841 FICO CDE Performing 115,049 102,788 80,973 75,289 83,214 314,668 17,382 789,363 Nonperforming 0 1,010 582 877 1,786 10,040 0 14,295 Total FICO CDE 115,049 103,798 81,555 76,166 85,000 324,708 17,382 803,658 Total consumer mortgage $ 375,637 $ 330,825 $ 248,468 $ 240,217 $ 246,256 $ 942,393 $ 17,703 $ 2,401,499 Consumer indirect: Performing $ 303,471 $ 305,901 $ 202,373 $ 86,497 $ 61,449 $ 61,975 $ 0 $ 1,021,666 Nonperforming 51 52 82 17 16 1 0 219 Total consumer indirect $ 303,522 $ 305,953 $ 202,455 $ 86,514 $ 61,465 $ 61,976 $ 0 $ 1,021,885 Consumer direct: Performing $ 49,181 $ 46,992 $ 27,872 $ 12,326 $ 5,232 $ 4,146 $ 6,878 $ 152,627 Nonperforming 1 19 2 5 0 3 0 30 Total consumer direct $ 49,182 $ 47,011 $ 27,874 $ 12,331 $ 5,232 $ 4,149 $ 6,878 $ 152,657 Home equity: Performing $ 48,145 $ 48,780 $ 28,074 $ 23,524 $ 17,828 $ 35,900 $ 194,773 $ 397,024 Nonperforming 0 24 73 104 183 490 1,936 2,810 Total home equity $ 48,145 $ 48,804 $ 28,147 $ 23,628 $ 18,011 $ 36,390 $ 196,709 $ 399,834 The following table details the balances in all other loan categories at December 31, 2019: Legacy Loans Consumer Consumer Consumer Home (000’s omitted) Mortgage Indirect Direct Equity Total Performing $ 1,984,533 $ 1,107,183 $ 175,900 $ 312,235 $ 3,579,851 Nonperforming 12,183 125 76 1,772 14,156 Total $ 1,996,716 $ 1,107,308 $ 175,976 $ 314,007 $ 3,594,007 Acquired Loans Consumer Consumer Consumer Home (000’s omitted) Mortgage Indirect Direct Equity Total Performing $ 431,523 $ 5,723 $ 8,350 $ 71,668 $ 517,264 Nonperforming 2,663 31 52 650 3,396 Total $ 434,186 $ 5,754 $ 8,402 $ 72,318 $ 520,660 All loan classes are collectively evaluated for impairment except business lending. A summary of individually evaluated impaired business lending loans as of December 31, 2020 and December 31, 2019 follows: December 31, December 31, (000’s omitted) 2020 2019 Loans with allowance allocation $ 27,437 $ 0 Loans without allowance allocation 8,138 1,414 Carrying balance 35,575 1,414 Contractual balance 38,362 2,944 Specifically allocated allowance 3,874 0 The average carrying balance of individually evaluated impaired loans was $12.2 million, $5.1 million and $7.6 million for the years ended December 31, 2020, December 31, 2019 and December 31, 2018, respectively. No interest income was recognized on individually evaluated impaired loans for the years ended December 31, 2020, December 31, 2019 and December 31, 2018. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a TDR has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial standing and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. In accordance with clarified guidance issued by the OCC, loans that have been discharged in Chapter 7 bankruptcy but not reaffirmed by the borrower, are classified as TDRs, irrespective of payment history or delinquency status, even if the repayment terms for the loan have not been otherwise modified. The Company’s lien position against the underlying collateral remains unchanged. Pursuant to that guidance, the Company records a charge-off equal to any portion of the carrying value that exceeds the net realizable value of the collateral. The amount of loss incurred in 2020, 2019 and 2018 was immaterial. TDRs less than $0.5 million are collectively included in the allowance for credit loss estimate. Commercial loans greater than $0.5 million are individually evaluated for impairment, and if necessary, a specific allocation of the allowance for credit losses is provided. With regard to determination of the amount of the allowance for credit losses, troubled debt restructured loans are considered to be impaired. As a result, the determination of the amount of allowance for credit losses related to impaired loans for each portfolio segment within TDRs is the same as detailed previously. With respect to the Company’s lending activities, the Company implemented a customer forbearance program allowing for loan payment deferrals up to three months per request during 2020 to assist both consumer and business borrowers that were experiencing financial hardship due to COVID-19 related challenges. Business lending, consumer direct, and consumer indirect loans in deferment status continued to accrue interest on the deferred principal during the deferment period unless otherwise classified as nonaccrual. Consumer mortgage and home equity loans did not accrue interest on the deferred payments during the deferment period. Consistent with the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), the Consolidated Appropriations Act of 2021 (“CAA”) and industry regulatory guidance, borrowers that were otherwise current on loan payments and granted COVID-19 related financial hardship payment deferrals were reported as current loans throughout the first 180 days of the deferral period and were not classified as TDRs. Borrowers that were delinquent in their payments to the Bank prior to requesting a COVID-19 related financial hardship payment deferral were reviewed on a case-by-case basis for TDR classification and non-performing loan status. As of December 31, 2020, the Company had 74 borrowers in forbearance due to COVID-19 related financial hardship, representing $66.5 million in outstanding loan balances, or 0.9 % of total loans outstanding. These forbearances were comprised of 63 business borrowers representing $65.7 million in outstanding loan balances and 11 consumer borrowers representing approximately $0.8 million in outstanding loan balances. Information regarding TDRs as of December 31, 2020 and December 31, 2019 is as follows: December 31, 2020 December 31, 2019 (000’s omitted) Nonaccrual Accruing Total Nonaccrual Accruing Total # Amount # Amount # Amount # Amount # Amount # Amount Business lending 6 $ 529 4 $ 191 10 $ 720 8 $ 681 3 $ 201 11 $ 882 Consumer mortgage 56 2,413 48 2,266 104 4,679 59 2,638 47 1,892 106 4,530 Consumer indirect 0 0 86 951 86 951 0 0 84 941 84 941 Consumer direct 0 0 23 85 23 85 0 0 23 101 23 101 Home equity 11 285 13 264 24 549 13 290 11 238 24 528 Total 73 $ 3,227 174 $ 3,757 247 $ 6,984 80 $ 3,609 168 $ 3,373 248 $ 6,982 The following table presents information related to loans modified in a TDR during the years ended December 31, 2020 and 2019. Of the loans noted in the table below, all consumer mortgage loans for the years ended December 31, 2020 and December 31, 2019, were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial. December 31, 2020 December 31, 2019 (000’s omitted) # Amount # Amount Business lending 1 $ 4 6 $ 685 Consumer mortgage 17 1,339 22 1,519 Consumer indirect 31 333 33 364 Consumer direct 3 10 6 49 Home equity 3 70 6 181 Total 55 $ 1,756 73 $ 2,798 Allowance for Credit Losses The following presents by segment the activity in the allowance for credit losses during 2020 and 2019: Year Ended December 31, 2020 Beginning Beginning balance, balance, prior to the after adoption of Impact of adoption of Steuben Ending (000’s omitted) ASC 326 ASC 326 ASC 326 Charge-offs Recoveries acquisition Provision balance Business lending $ 19,426 $ 288 $ 19,714 $ (1,497) $ 356 $ 2,343 $ 7,274 $ 28,190 Consumer mortgage 10,269 (1,051) 9,218 (862) 130 146 2,040 10,672 Consumer indirect 13,712 (997) 12,715 (6,382) 3,992 183 3,188 13,696 Consumer direct 3,255 (643) 2,612 (1,633) 743 87 1,398 3,207 Home equity 2,129 808 2,937 (199) 28 235 (779) 2,222 Unallocated 957 43 1,000 0 0 0 0 1,000 Purchased credit deteriorated 0 3,072 3,072 (91) 440 668 (2,207) 1,882 Acquired impaired 163 (163) 0 0 0 0 0 0 Allowance for credit losses 49,911 1,357 51,268 (10,664) 5,689 3,662 10,914 60,869 Liabilities for off-balance-sheet credit exposures 0 1,185 1,185 0 0 67 237 1,489 Total allowance for credit losses and liabilities for off-balance-sheet credit exposures $ 49,911 $ 2,542 $ 52,453 $ (10,664) $ 5,689 $ 3,729 $ 11,151 $ 62,358 Year Ended December 31, 2019 Business Consumer Consumer Consumer Home Acquired (000’s omitted) Lending Mortgage Indirect Direct Equity Unallocated Impaired Total Balance at December 31, 2018 18,522 10,124 14,366 3,095 2,144 1,000 33 49,284 Charge-offs (2,334) (1,372) (7,631) (1,945) (445) 0 0 (13,727) Recoveries 826 60 4,180 710 148 0 0 5,924 Provision 2,412 1,457 2,797 1,395 282 (43) 130 8,430 Balance at December 31, 2019 $ 19,426 $ 10,269 $ 13,712 $ 3,255 $ 2,129 $ 957 $ 163 $ 49,911 The allowance for credit losses to total loans ratio of 0.82% at December 31, 2020 was 10 basis points higher than the level at December 31, 2019. This increase was primarily due to non-economic qualitative adjustments resulting from higher loan delinquency and payment deferral levels and loan risk rating downgrades largely driven by the decline in economic conditions associated with the COVID-19 pandemic. Under CECL, the Company utilizes the historical loss rate on its loan portfolio as the initial basis for the estimate of credit losses using the cumulative loss, vintage loss and line loss methods which is derived from the Company’s historical loss experience from January 1, 2012 to December 31, 2019. Adjustments to historical loss experience were made for differences in current loan-specific risk characteristics and to address current period delinquencies, charge-off rates, risk ratings, lack of loan level data through an entire economic cycle, changes in loan sizes and underwriting standards as well as the addition of acquired loans which were not underwritten by the Company. The Company considered historical losses immediately prior, through and following the Great Recession of 2008 compared to the historical period used for modeling to adjust the historical information to account for longer-term expectations for loan credit performance. Under CECL, the Company is required to consider future economic conditions to determine current expected credit losses. Management selected an eight quarter reasonable and supportable forecast period using a two quarter lag adjustment with a four quarter reversion to the historical mean to use as part of the economic forecast. Management determined that these qualitative adjustments were needed to adjust historical information for expected losses and to reflect changes as a result of current conditions. For qualitative macroeconomic adjustments, the Company uses third party forecasted economic data scenarios utilizing a base scenario and two alternative scenarios that were weighted based on guidance from the third party provider, with forecasts available as of December 31, 2020. These forecasts were factored into the qualitative portion of the calculation of the estimated credit losses and included the impact of COVID-19, including forecasted vaccine distribution progress, and current and future Federal stimulus packages. The scenarios utilized outline a continued weakness in economic activity with peak unemployment ranging from 6% to 10% in the fourth quarter of 2021 and a general improvement in unemployment levels over the subsequent three quarters. In addition to the economic forecast, the Company also considered additional qualitative adjustments as a result of COVID-19 and the impact on all industries, loan deferrals, delinquencies and downgrades, and the risk that Paycheck Protection Program loans will not be forgiven. Management developed expected loss estimates considering factors for segments as outlined below: ● Business lending – non real estate: The Company considered projected unemployment and GDP as possible indicators of forecasted losses related to business lending and selected projected unemployment as the exclusive leading indicator in the model given the current economic environment. The Company also considered delinquencies, the level of loan deferrals, risk rating changes, recent charge-off history and acquired loans as part of the review of estimated losses. ● Business lending – real estate: The Company considered projected unemployment and real estate values as possible indicators of forecasted losses related to commercial real estate loans and selected projected unemployment as the exclusive leading indicator in the model given the current economic environment. The Company also considered the factors noted in business lending – non real estate. ● Consumer mortgages and home equity: The Company considered projected unemployment and real estate values as possible indicators of forecasted losses related to mortgage lending and selected projected unemployment as the exclusive leading indicator in the model given the current economic environment. In addition, current delinquencies, the level of loan deferrals, charge-offs and acquired loans were considered. ● Consumer indirect: The Company considered projected unemployment and vehicle valuation indices as possible indicators of forecasted losses related to indirect lending and selected projected unemployment as the exclusive leading indicator in the model given the current economic environment. In addition, current delinquencies, the level of loan deferrals, charge-offs and acquired loans were considered. ● Consumer direct: The Company considered and selected projected unemployment as the exclusive indicator of forecasted losses related to direct lending. In addition, current delinquencies, the level of loan deferrals, charge-offs and acquired loans were considered. The following table presents the carrying amounts of loans purchased and sold during the year ended December 31, 2020 by portfolio segment: (000’s omitted) Business lending Consumer mortgage Consumer indirect Consumer direct Home equity Total Purchases $ 253,509 $ 26,721 $ 13,926 $ 5,994 $ 39,554 $ 339,704 Sales 0 79,709 0 0 0 79,709 All the purchases during the twelve months ended December 31, 2020 were associated with the Steuben acquisition on June 12, 2020 and all the sales during the twelve months ended December 31, 2020 were sales of secondary market eligible residential mortgage loans. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | NOTE E: PREMISES AND EQUIPMENT Premises and equipment consist of the following at December 31: (000’s omitted) 2020 2019 Land and land improvements $ 29,070 $ 26,301 Bank premises 149,217 141,905 Equipment and construction in progress 99,239 89,819 Operating lease right-of-use assets 34,908 39,895 Premises and equipment, gross 312,434 297,920 Accumulated depreciation (146,779) (133,282) Premises and equipment, net $ 165,655 $ 164,638 |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | NOTE F: GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows: December 31, 2020 December 31, 2019 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying (000’s omitted) Amount Amortization Amount Amount Amortization Amount Amortizing intangible assets: Core deposit intangibles $ 69,403 $ (55,572) $ 13,831 $ 66,475 $ (50,057) $ 16,418 Other intangibles 90,462 (51,353) 39,109 89,266 (42,571) 46,695 Total amortizing intangibles $ 159,865 $ (106,925) $ 52,940 $ 155,741 $ (92,628) $ 63,113 The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows (000’s omitted): 2021 $ 12,640 2022 10,844 2023 9,082 2024 7,551 2025 6,374 Thereafter 6,449 Total $ 52,940 Shown below are the components of the Company’s goodwill at December 31, 2020, 2019, and 2018: December 31, December 31, December 31, (000’s omitted) 2018 Activity 2019 Activity 2020 Goodwill, net $ 733,503 $ 40,307 $ 773,810 $ 19,898 $ 793,708 During 2020, the Company performed quarterly qualitative analyses of goodwill impairment and performed a quantitative assessment of its insurance subsidiary included in the All Other segment during the fourth quarter of 2020 by comparing the fair value of the reporting unit with its carrying amount. The qualitative analyses performed in 2020 included assessments of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events, events affecting a reporting unit and changes in share price. During the first quarter of 2019, the Company performed its annual internal valuation of goodwill and impairment analysis by comparing the fair value of each reporting unit to its carrying value. Results of the quarterly and annual analyses indicate there was no goodwill impairment in 2020 or 2019. Mortgage Servicing Rights Under certain circumstances, the Company sells consumer residential mortgage loans in the secondary market and typically retains the right to service the loans sold. Generally, the Company’s residential mortgage loans sold to third parties are sold on a non-recourse basis. Upon sale, a mortgage servicing right (“MSR”) is established, which represents the current fair value of future net cash flows expected to be realized for performing the servicing activities. The Company stratifies these assets based on predominant risk characteristics, namely expected term of the underlying financial instruments, and uses a valuation model that calculates the present value of future cash flows to determine the fair value of servicing rights. MSRs are recorded in other assets at the lower of the initial capitalized amount, net of accumulated amortization or fair value. Mortgage loans serviced for others are not included in the accompanying consolidated statements of condition. The following table summarizes the changes in carrying value of MSRs and the associated valuation allowance: (000’s omitted) 2020 2019 Carrying value before valuation allowance at beginning of period $ 972 $ 1,137 Additions 715 17 Acquisitions 122 196 Amortization (379) (378) Carrying value before valuation allowance at end of period 1,430 972 Valuation allowance balance at beginning of period (298) 0 Impairment charges (150) (326) Impairment recoveries 229 28 Valuation allowance balance at end of period (219) (298) Net carrying value at end of period $ 1,211 $ 674 Fair value of MSRs at end of period $ 1,384 $ 1,362 Principal balance of loans sold during the year $ 79,709 $ 2,204 Principal balance of loans serviced for others $ 351,759 $ 294,093 Custodial escrow balances maintained in connection with loans serviced for others $ 5,583 $ 4,596 The following table summarizes the key economic assumptions used to estimate the value of the MSRs at December 31: 2020 2019 Weighted-average contractual life (in years) 21.5 20.9 Weighted-average constant prepayment rate (CPR) 30.4 % 18.7 % Weighted-average discount rate 2.1 % 3.0 % |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS | |
DEPOSITS | NOTE G: DEPOSITS Deposits recorded in the consolidated statements of condition consist of the following at December 31: (000’s omitted) 2020 2019 Noninterest checking $ 3,361,768 $ 2,465,902 Interest checking 2,876,420 2,138,348 Savings 1,949,517 1,538,203 Money market 2,103,498 1,916,385 Time 933,771 936,129 Total deposits $ 11,224,974 $ 8,994,967 Interest on deposits recorded in the consolidated statements of income consists of the following at December 31: (000’s omitted) 2020 2019 2018 Interest on interest checking $ 2,182 $ 3,678 $ 1,796 Interest on savings 665 942 858 Interest on money market 2,685 5,836 3,638 Interest on time 11,229 10,004 4,366 Total interest on deposits $ 16,761 $ 20,460 $ 10,658 The approximate maturities of time deposits at December 31, 2020 are as follows: Accounts $250,000 (000’s omitted) All Accounts or Greater 2021 $ 570,039 $ 140,887 2022 126,106 7,182 2023 106,713 6,632 2024 109,573 22,310 2025 21,244 2,595 Thereafter 96 0 Total $ 933,771 $ 179,606 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
BORROWINGS | |
BORROWINGS | NOTE H: BORROWINGS Outstanding borrowings at December 31 are as follows: (000’s omitted) 2020 2019 Overnight FHLB borrowings $ 0 $ 8,300 Subordinated notes payable, net of premium of $303 and $795, respectively 3,303 13,795 Subordinated debt held by unconsolidated subsidiary trusts 77,320 77,320 Securities sold under agreement to repurchase, short term 284,008 241,708 Other FHLB borrowings 6,658 3,750 Total borrowings $ 371,289 $ 344,873 FHLB advances are collateralized by a blanket lien on the Company's residential real estate loan portfolio and various investment securities. Borrowings at December 31, 2020 have contractual maturity dates as follows: Weighted-average Carrying Rate at (000’s omitted, except rate) Value December 31, 2020 January 2, 2021 $ 284,008 0.38 % February 8, 2021 675 1.45 % May 17, 2021 2,000 1.68 % June 14, 2021 1,000 1.59 % November 22, 2021 1,000 3.25 % February 8, 2023 190 1.79 % July 3, 2023 523 2.25 % October 23, 2023 425 1.50 % October 1, 2025 289 1.50 % February 28, 2028 3,303 6.00 % March 1, 2029 556 2.50 % December 15, 2036 77,320 1.87 % Total $ 371,289 0.76 % The weighted-average interest rate on borrowings for the years ended December 31, 2020 and 2019 was 1.27% and 1.86%, respectively. As of December 31, 2020, the Company sponsors one business trust, Community Capital Trust IV (“CCT IV”), of which 100% of the common stock is owned by the Company. The Company previously sponsored Steuben Statutory Trust (“SST II”) until September 15, 2020 when the Company exercised its right to redeem all of the SST II debentures and associated preferred securities for a total of $2.1 million. Additionally, the Company previously sponsored Kinderhook Capital Trust (“KCT”) and MBVT Statutory Trust I (“MBVT I”) until September 16, 2019 when the Company exercised its right to redeem all of the KCT and MBVT I debentures and associated preferred securities for a total of $2.1 million and $20.6 million, respectively. The common stock of SST II was acquired in the Steuben acquisition, the common stock of KCT was acquired in the Kinderhook acquisition and the common stock of MBVT I was acquired in the Merchants Bancshares, Inc. (“Merchants”) acquisition. The Company previously sponsored Community Statutory Trust III (“CST III”) until July 31, 2018 when the Company exercised its right to redeem all of the CST III debentures and associated preferred securities for a total of $25.2 million. The trusts were formed for the purpose of issuing company-obligated mandatorily redeemable preferred securities to third-party investors and investing the proceeds from the sale of such preferred securities solely in junior subordinated debt securities of the Company. The debentures held by each trust are the sole assets of such trust. Distributions on the preferred securities issued by each trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the debentures held by that trust and are recorded as interest expense in the consolidated financial statements. The preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities subject to the terms of each of the guarantees. As of December 31, 2020, the terms of the preferred securities of CCT IV are as follows: Issuance Par Maturity Trust Date Amount Interest Rate Date Call Price CCT IV 12/8/2006 $75.0 million 3 month LIBOR plus 1.65% (1.87)% 12/15/2036 Par |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
INCOME TAXES | NOTE I: INCOME TAXES The provision for income taxes for the years ended December 31 is as follows: (000’s omitted) 2020 2019 2018 Current: Federal $ 35,728 $ 34,804 $ 32,504 State and other 8,008 7,773 9,180 Deferred: Federal (2,005) (699) 2,122 State and other (331) (1,603) 541 Provision for income taxes $ 41,400 $ 40,275 $ 44,347 Components of the net deferred tax liability, included in other liabilities, as of December 31 are as follows: (000’s omitted) 2020 2019 Allowance for credit losses $ 15,004 $ 12,059 Employee benefits 7,552 5,393 Operating lease liabilities 8,601 9,801 Other, net 900 837 Deferred tax asset 32,057 28,090 Investment securities 43,325 21,547 Goodwill and intangibles 40,802 39,189 Operating lease right-of-use assets 8,384 9,566 Loan origination costs 7,904 7,639 Depreciation 3,089 2,736 Mortgage servicing rights 291 162 Pension 16,987 13,769 Deferred tax liability 120,782 94,608 Net deferred tax liability $ (88,725) $ (66,518) The Company has determined that no valuation allowance is necessary as it is more likely than not that the gross deferred tax assets will be realized through future reversals of existing temporary differences and through future taxable income. A reconciliation of the differences between the federal statutory income tax rate and the effective tax rate for the years ended December 31 is shown in the following table: 2020 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Increase (reduction) in taxes resulting from: Tax-exempt interest (1.5) (1.5) (1.6) State income taxes, net of federal benefit 3.0 2.5 3.4 Stock-based compensation (0.8) (1.6) (0.9) Federal tax credits (1.3) (1.3) (1.4) Other, net (0.3) 0.1 0.3 Effective income tax rate 20.1 % 19.2 % 20.8 % A reconciliation of the unrecognized tax benefits for the years ended December 31 is shown in the following table: (000’s omitted) 2020 2019 2018 Unrecognized tax benefits at beginning of year $ 0 $ 0 $ 24 Changes related to: Lapse of statutes of limitations 0 0 (24) Unrecognized tax benefits at end of year $ 0 $ 0 $ 0 As of December 31, 2020, there was no amount of material unrecognized tax benefits that would impact the Company’s effective tax rate if recognized. It is reasonably possible that the amount of unrecognized tax benefits could change in the next twelve months as a result of various examinations and expiration of statutes of limitations on prior tax returns. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits as part of income taxes in the consolidated statement of income. The accrued interest related to tax positions was immaterial. The Company’s federal and state income tax returns are routinely subject to examination from various governmental taxing authorities. Such examinations may result in challenges to the tax return treatment applied by the Company to specific transactions. Management believes that the assumptions and judgment used to record tax-related assets or liabilities have been appropriate. Future examinations by taxing authorities of the Company’s federal or state tax returns could have a material impact on the Company’s results of operations. The Company’s federal income tax returns for years after 2016 may still be examined by the Internal Revenue Service. New York State income tax returns for years after 2016 may still be examined by the New York Department of Taxation and Finance. The Company is currently under examination by the New York Department of Taxation and Finance in connection with tax years 2015 to 2017, and has not received any notices of proposed adjustments. It is not possible to estimate, if and when those examinations may be completed. The CARES Act is expected to have an immaterial impact as it relates to income taxes and the Company will continue to assess impacts in future periods. |
LIMITS ON DIVIDENDS AND OTHER R
LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES | 12 Months Ended |
Dec. 31, 2020 | |
LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES | |
LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES | NOTE J: LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES The Company’s ability to pay dividends to its shareholders is largely dependent on the Bank’s ability to pay dividends to the Company. In addition to the capital requirements discussed below, the circumstances under which the Bank may pay dividends are limited by federal statutes, regulations, and policies. For example, as a national bank, the Bank must obtain the approval of the Office of the Comptroller of the Currency (“OCC”) for payments of dividends if the total of all dividends declared in any calendar year would exceed the total of the Bank’s net profits, as defined by applicable regulations, for that year, combined with its retained net profits for the preceding two years. Furthermore, the Bank may not pay a dividend in an amount greater than its undivided profits then on hand after deducting its losses and bad debts, as defined by applicable regulations. At December 31, 2020, the Bank had approximately $110.7 million in undivided profits legally available for the payment of dividends. In addition, the Board of Governors of the Federal Reserve System (“FRB”) and the OCC are authorized to determine under certain circumstances that the payment of dividends would be an unsafe or unsound practice and to prohibit payment of such dividends. The FRB has indicated that banking organizations should generally pay dividends only out of current operating earnings. There are also statutory limits on the transfer of funds to the Company by its banking subsidiary, whether in the form of loans or other extensions of credit, investments or assets purchases. Such transfer by the Bank to the Company generally is limited in amount to 10% of the Bank’s capital and surplus, or 20 % in the aggregate. Furthermore, such loans and extensions of credit are required to be collateralized in specific amounts. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
BENEFIT PLANS | |
BENEFIT PLANS | NOTE K: BENEFIT PLANS Pension and post-retirement plans The Company provides a qualified defined benefit pension to eligible employees and retirees, other post-retirement health and life insurance benefits to certain retirees, an unfunded supplemental pension plan for certain key executives, and an unfunded Pension Benefits Post-retirement Benefits (000’s omitted) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at the beginning of year $ 162,084 $ 144,211 $ 1,677 $ 1,657 Service cost 5,750 5,081 0 0 Interest cost 5,657 6,264 57 70 Plan amendment / acquisition 13,598 0 0 0 Participant contributions 0 0 0 35 Deferred actuarial (gain)/loss 13,954 16,292 114 87 Benefits paid (10,682) (9,764) (130) (172) Benefit obligation at end of year 190,361 162,084 1,718 1,677 Change in plan assets: Fair value of plan assets at beginning of year 227,323 203,672 0 0 Actual return of plan assets 33,543 25,522 0 0 Participant contributions 0 0 0 35 Employer contributions 7,993 7,893 130 137 Plan acquisition 14,423 0 0 0 Benefits paid (10,682) (9,764) (130) (172) Fair value of plan assets at end of year 272,600 227,323 0 0 Over/(Under) funded status at year end $ 82,239 $ 65,239 $ (1,718) $ (1,677) Amounts recognized in the consolidated statement of condition were: Other assets $ 101,849 $ 81,930 $ 0 $ 0 Other liabilities (19,610) (16,691) (1,718) (1,677) Amounts recognized in accumulated other comprehensive loss/(income) (“AOCI”) were: Net loss $ 34,290 $ 42,743 $ 715 $ 641 Net prior service cost (credit) 4,348 4,056 (1,086) (1,265) Pre-tax AOCI 38,638 46,799 (371) (624) Taxes (9,488) (11,448) 94 155 AOCI at year end $ 29,150 $ 35,351 $ (277) $ (469) The benefit obligation for the defined benefit pension plan was $170.8 million and $145.4 million as of December 31, 2020 and 2019, respectively, and the fair value of plan assets as of December 31, 2020 and 2019 was $272.6 million and $227.3 million, respectively. The defined benefit pension plan was amended effective December 31, 2020 to transfer certain obligations from the Company’s deferred compensation plan and Restoration Plan (as defined below) into the qualified defined benefit pension plan. Effective December 31, 2020, the Steuben Trust Company Pension Plan was merged into the Community Bank System, Inc. Pension Plan and the combined plan was revalued resulting in an additional unamortized actuarial gain of approximately $1.1 million, due primarily to a gain on plan assets as of the valuation date. The Company has unfunded supplemental pension plans for certain key active and retired executives. The projected benefit obligation for the unfunded supplemental pension plan for certain key executives was $19.6 million and $16.4 million for 2020 and 2019, respectively. The Company also has an unfunded stock balance plan for certain of its nonemployee directors. The projected benefit obligation for the unfunded stock balance plan was $0.1 million for 2020 and 2019. The plan was frozen effective December 31, 2009. Effective June 1, 2018, the Company adopted the Community Bank System, Inc. Restoration Plan (“Restoration Plan”). The Restoration Plan is a non-qualified deferred compensation plan for certain employees whose benefits under tax-qualified retirement plans are restricted by the Internal Revenue Code Section 401(a)(17) limitation on compensation. Adoption of the plan resulted in an unfunded initial projected benefit obligation of approximately $0.8 million. The Restoration Plan was amended effective December 31, 2020 to transfer certain obligations into the Company’s qualified defined benefit pension plan. The projected benefit obligation for the unfunded Restoration Plan was $0.03 million for 2020 and $0.3 million for 2019, respectively. Effective December 31, 2009, the Company terminated its post-retirement medical program for current and future employees. Remaining plan participants will include only existing retirees as of December 31, 2010. This change was accounted for as a negative plan amendment and a $3.5 million, net of income taxes, benefit for prior service was recognized in AOCI in 2009. This negative plan amendment is being amortized over the expected benefit utilization period of remaining plan participants. Amounts recognized in accumulated other comprehensive income, net of tax, for the year ended December 31, are as follows: Pension Benefits Post-retirement Benefits (000’s omitted) 2020 2019 2020 2019 Prior service cost/(credit) $ 222 $ (49) $ 136 $ 136 Net (gain) loss (6,423) 1,920 56 38 Total $ (6,201) $ 1,871 $ 192 $ 174 The estimated costs, net of tax, that will be amortized from accumulated other comprehensive (income) loss into net periodic (income) cost over the next fiscal year are as follows: Pension Post-retirement (000’s omitted) Benefits Benefits Prior service credit $ 379 $ (179) Net loss 3,560 48 Total $ 3,939 $ (131) The weighted-average assumptions used to determine the benefit obligations as of December 31 are as follows: Pension Benefits Post-retirement Benefits 2020 2019 2020 2019 Discount rate 2.80 % 3.50 % 2.80 % 3.60 % Expected return on plan assets 7.00 % 7.00 % N/A N/A Rate of compensation increase 3.50 % 3.50 % N/A N/A The net periodic benefit cost as of December 31 is as follows: Pension Benefits Post-retirement Benefits (000’s omitted) 2020 2019 2018 2020 2019 2018 Service cost $ 5,750 $ 5,081 $ 4,561 $ 0 $ 0 $ 0 Interest cost 5,657 6,264 5,676 57 70 69 Expected return on plan assets (16,306) (14,311) (14,820) 0 0 0 Plan amendment (637) 0 13 0 0 0 Amortization of unrecognized net loss/(gain) 3,239 2,568 1,193 40 38 21 Amortization of prior service cost 241 64 (293) (179) (179) (179) Net periodic (benefit) $ (2,056) $ (334) $ (3,670) $ (82) $ (71) $ (89) Prior service costs in which all or almost all of the plan’s participants are fully eligible for benefits under the plan are amortized on a straight-line basis over the expected future working years of all active plan participants. Unrecognized gains or losses are amortized using the “corridor approach”, which is the minimum amortization required. Under the corridor approach, the net gain or loss in excess of 10 percent of the greater of the projected benefit obligation or the market-related value of the assets is amortized on a straight-line basis over the expected future working years of all active plan participants. The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31 are as follows: Pension Benefits Post-retirement Benefits 2020 2019 2018 2020 2019 2018 Discount rate 3.50 % 4.50 % 4.00 % 3.60 % 4.45 % 4.00 % Expected return on plan assets 7.00 % 7.00 % 7.00 % N/A N/A N/A Rate of compensation increase 3.50 % 3.50 % 3.50 % N/A N/A N/A The amount of benefit payments that are expected to be paid over the next ten years are as follows: Pension Post-retirement (000’s omitted) Benefits Benefits 2021 $ 10,588 $ 174 2022 11,061 130 2023 12,004 128 2024 12,404 125 2025 12,238 122 2026-2030 64,468 560 The payments reflect future service and are based on various assumptions including retirement age and form of payment (lump-sum versus annuity). Actual results may differ from these estimates. The assumed discount rate is used to reflect the time value of future benefit obligations. The discount rate was determined based upon the yield on high-quality fixed income investments expected to be available during the period to maturity of the pension benefits. This rate is sensitive to changes in interest rates. A decrease in the discount rate would increase the Company’s obligation and future expense while an increase would have the opposite effect. The expected long-term rate of return was estimated by taking into consideration asset allocation, reviewing historical returns on the type of assets held and current economic factors. Based on the Company’s anticipation of future experience under the defined benefit pension plan, the mortality tables used to determine future benefit obligations under the plan were updated as of December 31, 2020 to the sex-distinct Pri-2012 Mortality Tables for employees, healthy annuitants and contingent survivors, adjusted for mortality improvements using Scale MP-2020 mortality improvement scale on a generational basis. The appropriateness of the assumptions are reviewed annually. Plan Assets The investment objective for the defined benefit pension plan is to achieve an average annual total return over a five-year period equal to the assumed rate of return used in the actuarial calculations. At a minimum performance level, the portfolio should earn the return obtainable on high quality intermediate-term bonds. The Company’s perspective regarding portfolio assets combines both preservation of capital and moderate risk-taking. Asset allocation favors fixed income securities, with a target allocation of approximately 60% equity securities and 40 % fixed income securities and money market funds. Due to the volatility in the market, the target allocation is not always desirable and asset allocations will fluctuate between acceptable ranges. Prohibited transactions include purchase of securities on margin, uncovered call options, and short sale transactions. The fair values of the Company’s defined benefit pension plan assets at December 31, 2020 by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset category (000’s omitted) Level 1 Level 2 Level 3 Total Cash equivalents $ 68,137 $ 0 $ 0 $ 68,137 Equity securities: U.S. large-cap 69,195 0 0 69,195 U.S mid/small cap 17,338 0 0 17,338 CBU stock 7,701 0 0 7,701 International 43,457 6,088 0 49,545 137,691 6,088 0 143,779 Fixed income securities: Government securities 6,154 6,241 0 12,395 Investment grade bonds 23,085 141 0 23,226 High yield (a) 5,803 0 0 5,803 35,042 6,382 0 41,424 Other investments (b) 17,613 0 0 17,613 Total (c)(d) $ 258,483 $ 12,470 $ 0 $ 270,953 The fair values of the Company’s defined benefit pension plan assets at December 31, 2019 by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset category (000’s omitted) Level 1 Level 2 Level 3 Total Cash equivalents $ 3,983 $ 0 $ 0 $ 3,983 Equity securities: U.S. large-cap 50,301 0 0 50,301 U.S mid/small cap 10,408 0 0 10,408 CBU stock 6,522 0 0 6,522 International 30,420 5,375 0 35,795 97,651 5,375 0 103,026 Fixed income securities: Government securities 73,698 8,341 0 82,039 Investment grade bonds 12,938 0 0 12,938 High yield (a) 5,279 0 0 5,279 91,915 8,341 0 100,256 Other investments (b) 19,488 82 0 19,570 Total (c) $ 213,037 $ 13,798 $ 0 $ 226,835 (a) This category is exchange-traded funds representing a diversified index of high yield corporate bonds. (b) This category is comprised of exchange-traded funds and mutual funds holding non-traditional investment classes including private equity funds and alternative exchange funds. (c) Excludes dividends and interest receivable totaling $0.2 million and $0.5 million at December 31, 2020 and 2019, respectively. (d) Excludes certain investments that were measured at net asset value per share (or its equivalents) totaling $1.4 million at December 31, 2020. The valuation techniques used to measure fair value for the items in the table above are as follows: ● Money market funds - Managed portfolios, including commercial paper and other fixed income securities issued by U.S. and foreign corporations, asset-backed commercial paper, U.S. government securities, obligations of foreign governments and U.S. and foreign banks, which are valued at the closing price reported on the market on which the underlying securities are traded. ● Equity securities and other investments – Mutual funds, equity securities and common stock of the Company which are valued at the quoted market price of shares held at year-end. ● Fixed income securities - U.S. Treasuries, municipal bonds and notes, government sponsored entities, and corporate debt valued at the closing price reported on the active market on which the individual securities are traded or for municipal bonds and notes based on quoted prices for similar assets in the active market. The Company makes contributions to its funded qualified pension plan as required by government regulation or as deemed appropriate by management after considering the fair value of plan assets, expected return on such assets, and the value of the accumulated benefit obligation. The Company made a $3.5 million contribution to the Steuben Trust Company Pension Plan in 2020. The Company made a $3.9 million and $7.3 million contribution to its defined benefit pension plan in 2020 and 2019, respectively. The Company funds the payment of benefit obligations for the supplemental pension and post-retirement plans because such plans do not hold assets for investment. 401(k) Employee Stock Ownership Plan The Company has a 401(k) Employee Stock Ownership Plan in which employees can contribute from 1% to 90% of eligible compensation, with the first 3% being eligible for a 100% matching contribution in the form of Company common stock and the next 3% being eligible for a 50% matching contributions in the form of Company common stock. The expense recognized under this plan for the years ended December 31, 2020, 2019 and 2018 was $6.3 million, $6.1 million, and $5.9 million, respectively. Effective January 1, 2010, the defined benefit pension plan was modified to a new plan design that includes an interest credit contribution to be made to the 401(k) plan. The expense recognized for this interest credit contribution for the years ended December 31, 2020, 2019, and 2018 was $0.9 million, $1.1 million, and $0.9 million, respectively. The Company acquired The National Union Bank of Kinderhook 401(k) Savings Plan with the Kinderhook acquisition and The Steuben Trust Company 401(k) Plan with the Steuben acquisition. Effective November 9, 2020 and January 1, 2021, The National Union Bank of Kinderhook 401(k) Savings Plan and The Steuben Trust Company 401(k) Plan were merged into and became part of the Community Bank System, Inc. 401(k) Employee Stock Ownership Plan, respectively. Other Deferred Compensation Arrangements In addition to the supplemental pension plans for certain executives, the Company has nonqualified deferred compensation arrangements for several former directors, officers and key employees. All benefits provided under these plans are unfunded and payments to plan participants are made by the Company. At December 31, 2020 and 2019, the Company has recorded a liability of $5.4 million and $2.6 million, respectively. The expense recognized under these plans for the years ended December 31, 2020, 2019, and 2018 was approximately $0.4 million, $0.2 million, and $0.08 million, respectively. Deferred Compensation Plans for Directors Directors of the Company may defer all or a portion of their director fees under the Deferred Compensation Plan for Directors. Under this plan, there is a separate account for each participating director which is credited with the amount of shares that could have been purchased with the director’s fees as well as any dividends on such shares. On the distribution date, the director will receive common stock equal to the accumulated share balance in their account. As of December 31, 2020 and 2019, there were 141,655 and 151,519 shares credited to the participants’ accounts, for which a liability of $4.8 million and $4.9 million was accrued, respectively. The expense recognized under the plan for the years ended December 31, 2020, 2019 and 2018, was $0.2 million, $0.2 million, and $0.2 million, respectively. The Company acquired deferred compensation plans for certain non-employee directors and trustees of Merchants. Under the terms of these acquired deferred compensation plans, participating directors could elect to have all, or a specified percentage, of their Merchants director’s fees for a given year paid in the form of cash or deferred in the form of restricted shares of Merchants’ common stock. Directors who elected to have their compensation deferred were credited with a number of shares of Merchants’ common stock equal in value to the amount of fees deferred. These shares were converted to shares of Company stock in connection with the acquisition and are held in a rabbi trust. The shares held in the rabbi trust are considered outstanding for purposes of computing earnings per share. The participating director may not sell, transfer or otherwise dispose of these shares prior to distribution. With respect to shares of common stock issued or otherwise transferred to a participating director, the participating director has the right to receive dividends or other distributions thereon. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | NOTE L: STOCK-BASED COMPENSATION PLANS The Company has a long-term incentive program for directors, officers and employees. Under this program, the Company initially authorized four Activity in this long-term incentive program is as follows: Stock Options Weighted- average Exercise Outstanding Price of Shares Outstanding at December 31, 2018 1,644,361 $ 38.36 Granted 199,110 59.41 Exercised (331,315) 30.42 Forfeited (9,162) 51.29 Outstanding at December 31, 2019 1,502,994 42.82 Granted 254,496 51.68 Exercised (197,564) 32.65 Forfeited (17,667) 50.97 Outstanding at December 31, 2020 1,542,259 45.49 Exercisable at December 31, 2020 978,833 $ 40.77 The following table summarizes the information about stock options outstanding under the Company’s stock option plan at December 31, 2020: Options outstanding Options exercisable Weighted- Weighted- Weighted- average average average Exercise Remaining Exercise Range of Exercise Price Shares Price Life (years) Shares Price $0.00 – $28.00 50,619 $ 23.95 4.75 50,619 $ 23.95 $28.001 – $29.00 52,014 28.78 1.22 52,014 28.78 $29.001 – $30.00 104,045 29.79 2.21 104,045 29.79 $30.001 – $40.00 536,831 37.12 4.37 493,761 37.04 $40.001 – $60.00 798,750 55.61 7.86 278,394 56.78 TOTAL 1,542,259 $ 45.49 5.94 978,833 $ 40.77 The weighted-average remaining contractual term of outstanding and exercisable stock options at December 31, 2020 is 5.94 years and 4.74 years, respectively. The aggregate intrinsic value of outstanding and exercisable stock options at December 31, 2020 is $25.9 million and $21.1 million, respectively. The Company recognized stock-based compensation expense related to non-qualified stock options of $2.7 million, $2.2 million and $2.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. A related income tax benefit was recognized of $0.7 million, $0.5 million and $0.6 million for the 2020, 2019 and 2018 years, respectively. Compensation expense related to restricted stock vesting recognized in the income statement for 2020, 2019 and 2018 was approximately $3.3 million, $2.8 million and $3.2 million, respectively. Management estimated the fair value of options granted using the Black-Scholes option-pricing model. This model was originally developed to estimate the fair value of exchange-traded equity options, which (unlike employee stock options) have no vesting period or transferability restrictions. As a result, the Black-Scholes model is not necessarily a precise indicator of the value of an option, but it is commonly used for this purpose. The Black-Scholes model requires several assumptions, which management developed based on historical trends and current market observations. 2020 2019 2018 Weighted-average Fair Value of Options Granted $ 10.86 $ 14.16 $ 13.44 Assumptions: Weighted-average expected life (in years) 6.50 6.50 6.50 Future dividend yield 2.57 % 2.73 % 2.91 % Share price volatility 29.29 % 29.31 % 29.44 % Weighted-average risk-free interest rate 0.67 % 2.44 % 2.82 % Unrecognized stock-based compensation expense related to non-vested stock options totaled $5.0 million at December 31, 2020. The weighted-average period over which this unrecognized expense would be recognized is 3.2 years. The total fair value of stock options vested during 2020, 2019, and 2018 were $2.5 million, $2.4 million and $2.3 million, respectively. During the 12 months ended December 31, 2020 and 2019, proceeds from stock option exercises totaled $7.5 million and $11.3 million, respectively, and the related tax benefits from exercise were approximately $1.2 million and $2.3 million, respectively. During the twelve months ended December 31, 2020 and 2019, approximately 0.2 million and 0.3 million shares, respectively, were issued in connection with stock option exercises each year. The total intrinsic value of options exercised during 2020, 2019 and 2018 were $6.6 million, $11.6 million and $8.4 million, respectively. A summary of the status of the Company’s unvested restricted stock awards as of December 31, 2020, and changes during the twelve months ended December 31, 2020 and 2019, is presented below: Restricted Weighted-average Shares grant date fair value Unvested at December 31, 2018 221,063 $ 37.72 Awards 108,556 42.53 Forfeitures (2,365) 52.47 Vestings (130,466) 29.71 Unvested at December 31, 2019 196,788 45.58 Awards 52,132 51.64 Forfeitures (12,884) 37.14 Vestings (59,628) 47.80 Unvested at December 31, 2020 176,408 $ 47.24 Unrecognized stock-based compensation expense related to unvested restricted stock totaled $6.1 million at December 31, 2020, which will be recognized as expense over the next five years. The weighted-average period over which this unrecognized expense would be recognized is 4.2 years. The total fair value of restricted stock vested during 2020, 2019, and 2018 were $2.9 million, $3.8 million and $2.3 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE M: EARNINGS PER SHARE The two class method is used in the calculations of basic and diluted earnings per share. Under the two class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared and participation rights in undistributed earnings. The Company has determined that all of its outstanding non-vested stock awards are participating securities as of December 31, 2020. Basic earnings per share are computed based on the weighted-average of the common shares outstanding for the period. Diluted earnings per share are based on the weighted-average of the shares outstanding and the assumed exercise of stock options during the year. The dilutive effect of options is calculated using the treasury stock method of accounting. The treasury stock method determines the number of common shares that would be outstanding if all the dilutive options were exercised and the proceeds were used to repurchase common shares in the open market at the average market price for the applicable time period. There were approximately 0.6 million, 0.5 million and 0.4 million weighted-average anti-dilutive stock options outstanding at December 31, 2020, 2019 and 2018, respectively, which were not included in the computation below. The following is a reconciliation of basic to diluted earnings per share for the years ended December 31, 2020, 2019 and 2018. (000’s omitted, except per share data) 2020 2019 2018 Net income $ 164,676 $ 169,063 $ 168,641 Income attributable to unvested stock-based compensation awards (514) (400) (744) Income available to common shareholders $ 164,162 $ 168,663 $ 167,897 Weighted-average common shares outstanding - basic 52,969 51,732 51,165 Basic earnings per share $ 3.10 $ 3.26 $ 3.28 Net income $ 164,676 $ 169,063 $ 168,641 Income attributable to unvested stock-based compensation awards (514) (400) (744) Income available to common shareholders $ 164,162 $ 168,663 $ 167,897 Weighted-average common shares outstanding 52,969 51,732 51,165 Assumed exercise of stock options 352 516 583 Weighted-average common shares outstanding – diluted 53,321 52,248 51,748 Diluted earnings per share $ 3.08 $ 3.23 $ 3.24 Cash dividends declared per share $ 1.66 $ 1.58 $ 1.44 Stock Repurchase Program At its December 2019 meeting, the Board approved a new stock repurchase program authorizing the repurchase, at the discretion of senior management, of up to 2,600,000 shares of the Company’s common stock, in accordance with securities and banking laws and regulations, during a twelve-month period starting January 1, 2020. There were no treasury stock purchases made under this authorization in 2020. At its December 2020 meeting, the Board approved a new stock repurchase program authorizing the repurchase, at the discretion of senior management, of up to 2,680,000 shares of the Company’s common stock, in accordance with securities and banking laws and regulations, during a twelve-month period starting January 1, 2021. Any repurchased shares will be used for general corporate purposes, including those related to stock plan activities. The timing and extent of repurchases will depend on market conditions and other corporate considerations as determined at the Company’s discretion. |
COMMITMENTS, CONTINGENT LIABILI
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | NOTE N: COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments consist primarily of commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. These commitments consist principally of unused commercial and consumer credit lines. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of an underlying contract with a third party. The credit risks associated with commitments to extend credit and standby letters of credit are essentially the same as that involved with extending loans to customers and are subject to the Company’s normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness. The fair value of the standby letters of credit is immaterial for disclosure. The contract amounts of commitments and contingencies are as follows at December 31: (000’s omitted) 2020 2019 Commitments to extend credit $ 1,313,568 $ 1,143,780 Standby letters of credit 39,213 37,872 Total $ 1,352,781 $ 1,181,652 The Bank has unused lines of credit of $25.0 million at December 31, 2020. The Bank has unused borrowing capacity of approximately $1.66 billion through collateralized transactions with the FHLB and $256.2 million through collateralized transactions with the Federal Reserve. The Company is required to maintain a reserve balance, as established by the FRB. Effective on March 26, 2020, the FRB reduced this cash reserve requirement to zero percent to help support lending to households and businesses as a result of the impacts of the COVID-19 pandemic. As a result, the Company had no required reserve for the 14-day maintenance period of December 31, 2020 through January 13, 2021. The Company and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. As of December 31, 2020, management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against the Company or its subsidiaries will be material to the Company’s consolidated financial position. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. The range of reasonably possible losses for matters where an exposure is not currently estimable or considered probable, beyond the existing recorded liabilities, is believed to be between $0 and $1 million in the aggregate. Although the Company does not believe that the outcome of pending litigation will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future. The Company recorded $3.0 million in litigation accrual in 2020 related to an anticipated settlement, following mediation, of a purported class action lawsuit regarding the Bank’s deposit account terms and overdraft disclosures and certain overdraft fees assessed pursuant to such terms and disclosures. The Company executed a settlement agreement with respect to the lawsuit in the fourth quarter of 2020 and does not anticipate that additional amounts will be accrued for this matter in future periods. The settlement, which is subject to documentation and Court approval, will provide for a release of all claims asserted by class members in the action. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | NOTE O: LEASES The Company has operating leases for certain offices and certain equipment. These leases have remaining terms that range from less than one year to 14 years. Options to extend the leases range from a single extension option of one year to multiple extension options for up to 40 years. Certain agreements include an option to terminate the lease within one year. The components of lease expense are as follows: (000’s omitted) 2020 2019 Operating lease cost $ 9,000 $ 8,724 Variable lease cost 53 18 Short-term lease cost (1) 369 240 Total lease cost $ 9,422 $ 8,982 (1) Short-term lease cost includes the cost of leases with terms of twelve months or less, excluding leases with terms of one month or less. Rental expense included in operating expenses amounted to $9.0 million in 2018. Supplemental cash flow information related to leases is as follows: (000’s omitted) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 8,478 $ 7,938 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3,519 14,145 Supplemental balance sheet information related to leases is as follows: (000’s omitted, except lease term and discount rate) 2020 2019 Operating leases Operating lease right-of-use assets $ 34,908 $ 39,895 Operating lease liabilities 35,857 40,913 Weighted average remaining lease term Operating leases 6.1 years 6.6 years Weighted average discount rate Operating leases 2.82 % 2.95 % Maturities of lease liabilities as of December 31, 2020 are as follows: (000’s omitted) Operating Leases 2021 $ 8,697 2022 7,505 2023 6,336 2024 4,973 2025 3,688 Thereafter 8,222 Total lease payments 39,421 Less imputed interest (3,564) Total $ 35,857 Maturities of lease liabilities as of December 31, 2019 are as follows: (000’s omitted) Operating Leases 2020 $ 9,396 2021 7,952 2022 6,664 2023 5,695 2024 4,565 Thereafter 11,150 Total lease payments 45,422 Less imputed interest (4,509) Total $ 40,913 Included in the Company’s operating leases are related party leases where BPAS APS and OneGroup, subsidiaries of the Company, lease office space from 706 North Clinton, LLC (“706 North Clinton”), an entity the Company holds a 50% membership interest in through its subsidiary OPFC II. As of December 31, 2020, the operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $4.5 million and $4.5 million, respectively. As of December 31, 2019, the operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $4.9 million and $4.9 million, respectively. As of December 31, 2020, the weighted average remaining lease term and weighted average discount rate for the Company’s related party leases are 9.0 years and 3.68 %, respectively. As of December 31, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s related party leases are 10.0 years and 3.67%, respectively. The maturities of the Company’s related party lease liabilities as of December 31, 2020 are as follows: (000’s omitted) 706 North Clinton, LLC 2021 $ 591 2022 591 2023 591 2024 591 2025 605 Thereafter 2,341 Total lease payments 5,310 Less imputed interest (791) Total $ 4,519 The maturities of the Company’s related party lease liabilities as of December 31, 2019 are as follows: (000’s omitted) 706 North Clinton, LLC 2020 $ 591 2021 591 2022 591 2023 591 2024 591 Thereafter 2,946 Total lease payments 5,901 Less imputed interest (964) Total $ 4,937 As of December 31, 2020, the Company has an immaterial amount of additional operating leases for offices and equipment that have not yet commenced. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | NOTE P: REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Management believes, as of December 31, 2020, that the Company and Bank meet all applicable capital adequacy requirements. Basel III Transitional rules became effective for the Company on January 1, 2015 with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Beginning in 2016, the Company and the Bank are required to maintain a “capital conservation buffer,” composed entirely of common equity Tier 1 capital, in addition to minimum risk-based capital ratios. The required capital conservation buffer is 2.50% for both 2020 and 2019. Therefore, to satisfy both the minimum risk-based capital ratios and the capital conservation buffer in 2020 and 2019, the Company and the Bank must maintain: (i) Common equity Tier 1 capital to total risk-weighted assets of at least 7.0%, (ii) Tier 1 capital to total risk-weighted assets of at least 8.5%, and (iii) Total capital (Tier 1 capital plus Tier 2 capital) to total risk-weighted assets of at least 10.5%. As of December 31, 2020 and 2019, the amounts, ratios and requirements for the Company are presented below calculated under the Basel III Standardized Transitional Approach. As of December 31, 2020, the OCC categorized the Company and Bank as “well capitalized” under the regulatory framework for prompt corrective action. For capital adequacy To be well-capitalized For capital adequacy purposes plus Capital under prompt Actual purposes Conservation Buffer corrective action (000’s omitted) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Community Bank System, Inc.: 2020 Tier 1 Leverage ratio $ 1,314,864 10.16 % $ 517,736 4.00 % $ 647,169 5.00 % Tier 1 risk-based capital 1,314,864 18.99 % 415,472 6.00 % $ 588,585 8.50 % 553,962 8.00 % Total risk-based capital 1,375,704 19.87 % 553,962 8.00 % 727,075 10.50 % 692,453 10.00 % Common equity tier 1 capital 1,239,754 17.90 % 311,604 4.50 % 484,717 7.00 % 450,094 6.50 % 2019 Tier 1 Leverage ratio $ 1,148,336 10.80 % $ 425,431 4.00 % $ 531,788 5.00 % Tier 1 risk-based capital 1,148,336 17.23 % 399,834 6.00 % $ 566,432 8.50 % 533,112 8.00 % Total risk-based capital 1,198,724 17.99 % 533,112 8.00 % 699,710 10.50 % 666,390 10.00 % Common equity tier 1 capital 1,073,281 16.11 % 299,876 4.50 % 466,473 7.00 % 433,154 6.50 % Community Bank, N.A.: 2020 Tier 1 Leverage ratio $ 1,028,285 7.98 % $ 515,552 4.00 % $ 644,440 5.00 % Tier 1 risk-based capital 1,028,285 14.98 % 411,880 6.00 % $ 583,497 8.50 % 549,174 8.00 % Total risk-based capital 1,089,125 15.87 % 549,174 8.00 % 720,791 10.50 % 686,467 10.00 % Common equity tier 1 capital 1,028,175 14.98 % 308,910 4.50 % 480,527 7.00 % 446,204 6.50 % 2019 Tier 1 Leverage ratio $ 910,364 8.61 % $ 422,882 4.00 % $ 528,603 5.00 % Tier 1 risk-based capital 910,364 13.79 % 396,064 6.00 % $ 561,091 8.50 % 528,086 8.00 % Total risk-based capital 960,752 14.55 % 528,086 8.00 % 693,113 10.50 % 660,107 10.00 % Common equity tier 1 capital 910,309 13.79 % 297,048 4.50 % 462,075 7.00 % 429,070 6.50 % |
PARENT COMPANY STATEMENTS
PARENT COMPANY STATEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY STATEMENTS | |
PARENT COMPANY STATEMENTS | NOTE Q: PARENT COMPANY STATEMENTS The condensed statements of condition of the parent company, Community Bank System, Inc., at December 31 are as follows: (000's omitted) 2020 2019 Assets: Cash and cash equivalents $ 196,021 $ 180,663 Investment securities 6,043 2,853 Investment in and advances to: Bank subsidiary 1,802,150 1,594,790 Non-bank subsidiaries 196,090 180,487 Other assets 15,290 12,406 Total assets $ 2,215,594 $ 1,971,199 Liabilities and shareholders' equity: Accrued interest and other liabilities $ 30,864 $ 24,850 Borrowings 80,623 91,115 Shareholders' equity 2,104,107 1,855,234 Total liabilities and shareholders' equity $ 2,215,594 $ 1,971,199 The condensed statements of income of the parent company for the years ended December 31 is as follows: (000's omitted) 2020 2019 2018 Revenues: Dividends from subsidiaries: Bank subsidiary $ 105,000 $ 115,000 $ 98,000 Non-bank subsidiaries 13,500 27,600 9,250 Interest and dividends on investments 168 134 161 Total revenues 118,668 142,734 107,411 Expenses: Interest on borrowings 2,546 4,244 4,677 Acquisition expenses 450 1,248 0 (Gain)/loss on debt extinguishment (421) 0 318 Other expenses 4,945 477 131 Total expenses 7,520 5,969 5,126 Income before tax benefit and equity in undistributed net income of subsidiaries 111,148 136,765 102,285 Income tax benefit 3,739 4,545 1,330 Income before equity in undistributed net income of subsidiaries 114,887 141,310 103,615 Equity in undistributed net income of subsidiaries 49,789 27,753 65,026 Net income $ 164,676 $ 169,063 $ 168,641 Other comprehensive income/(loss), net of tax: Changes in other comprehensive income/(loss) related to pension and other post retirement obligations 6,009 (2,045) (11,204) Changes in other comprehensive income/(loss) related to unrealized losses on available-for-sale securities 66,294 37,124 (30,402) Other comprehensive income/(loss) 72,303 35,079 (41,606) Comprehensive income $ 236,979 $ 204,142 $ 127,035 The statements of cash flows of the parent company for the years ended December 31 is as follows: (000's omitted) 2020 2019 2018 Operating activities: Net income $ 164,676 $ 169,063 $ 168,641 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed net income of subsidiaries (49,789) (27,753) (65,026) Net change in other assets and other liabilities 1,740 86 (1,084) Net cash provided by operating activities 116,627 141,396 102,531 Investing activities: Proceeds from redemption of investment securities 0 0 776 Purchases of investment securities (3,000) 0 0 Cash paid for acquisitions, net of cash acquired of (20,892) (92,056) 0 Return of capital from/(capital contributions to) 2 100,680 0 Net cash (used in)/provided by investing activities (23,890) 8,624 776 Financing activities: Repayment of advances from subsidiaries (482) (1,652) 0 Repayment of borrowings (12,062) (22,681) (25,207) Issuance of common stock 22,211 12,200 12,507 Purchase of treasury stock (271) (286) (298) Sale of treasury stock 85 6,884 12,561 Increase in deferred compensation arrangements 271 286 298 Cash dividends paid (87,131) (80,241) (71,495) Net cash used in financing activities (77,379) (85,490) (71,634) Change in cash and cash equivalents 15,358 64,530 31,673 Cash and cash equivalents at beginning of year 180,663 116,133 84,460 Cash and cash equivalents at end of year $ 196,021 $ 180,663 $ 116,133 Supplemental disclosures of cash flow information: Cash paid for interest $ 2,555 $ 4,306 $ 4,857 Supplemental disclosures of noncash financing activities Dividends declared and unpaid $ 22,695 $ 21,342 $ 19,808 Advances from subsidiaries 932 1,691 0 Common stock issued for acquisition 76,942 0 0 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE | |
FAIR VALUE | NOTE R: FAIR VALUE Accounting standards allow entities an irrevocable option to measure certain financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The Company has elected to value mortgage loans held for sale at fair value in order to more closely match the gains and losses associated with loans held for sale with the gains and losses on forward sales contracts. Accordingly, the impact on the valuation will be recognized in the Company’s consolidated statement of income. All mortgage loans held for sale are current and in performing status. Accounting standards establish a framework for measuring fair value and require certain disclosures about such fair value instruments. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. exit price). Inputs used to measure fair value are classified into the following hierarchy: ● Level 1 – Quoted prices in active markets for identical assets or liabilities. ● Level 2 – Quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. ● Level 3 – Significant valuation assumptions not readily observable in a market. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis. There were no transfers between any of the levels for the periods presented. December 31, 2020 Total Fair (000’s omitted) Level 1 Level 2 Level 3 Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 2,359,912 $ 141,470 $ 0 $ 2,501,382 Obligations of state and political subdivisions 0 475,660 0 475,660 Government agency mortgage-backed securities 0 522,638 0 522,638 Corporate debt securities 0 4,635 0 4,635 Government agency collateralized mortgage obligations 0 43,577 0 43,577 Total available-for-sale investment securities 2,359,912 1,187,980 0 3,547,892 Equity securities 445 0 0 445 Mortgage loans held for sale 0 1,622 0 1,622 Commitments to originate real estate loans for sale 0 0 14 14 Forward sales commitments 0 2 0 2 Interest rate swap agreements asset 0 1,572 0 1,572 Interest rate swap agreements liability 0 (1,074) 0 (1,074) Total $ 2,360,357 $ 1,190,102 $ 14 $ 3,550,473 December 31, 2019 Total Fair (000’s omitted) Level 1 Level 2 Level 3 Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,878,705 $ 165,054 $ 0 $ 2,043,759 Obligations of state and political subdivisions 0 512,208 0 512,208 Government agency mortgage-backed securities 0 432,862 0 432,862 Corporate debt securities 0 2,528 0 2,528 Government agency collateralized mortgage obligations 0 53,071 0 53,071 Total available-for-sale investment securities 1,878,705 1,165,723 0 3,044,428 Equity securities 451 0 0 451 Interest rate swap agreements asset 0 851 0 851 Interest rate swap agreements liability 0 (586) 0 (586) Total $ 1,879,156 $ 1,165,988 $ 0 $ 3,045,144 The valuation techniques used to measure fair value for the items in the table above are as follows: ● Available for sale investment securities – The fair value of available-for-sale investment securities is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using quoted market prices for similar securities or model-based valuation techniques. Level 1 securities include U.S. Treasury obligations and marketable equity securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 securities include U.S. agency securities, mortgage-backed securities issued by government-sponsored entities, municipal securities and corporate debt securities that are valued by reference to prices for similar securities or through model-based techniques in which all significant inputs, such as reported trades, trade execution data, LIBOR swap yield curve, market prepayment speeds, credit information, market spreads, and security’s terms and conditions, are observable. See Note C for further disclosure of the fair value of investment securities. ● Mortgage loans held for sale – Mortgage loans held for sale are carried at fair value, which is determined using quoted secondary-market prices of loans with similar characteristics and, as such, have been classified as a Level 2 valuation. The unpaid principal value of mortgage loans held for sale was approximately $1.6 million at December 31, 2020. The unrealized gain on mortgage loans was recognized in other banking services revenues in the consolidated statement of income for the year ended December 31, 2020 and was immaterial. ● Forward sales commitments – The Company enters into forward sales commitments to sell certain residential real estate loans. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value in the other asset or other liability section of the consolidated statement of condition. The fair value of these forward sales commitments is primarily measured by obtaining pricing from certain government-sponsored entities and reflects the underlying price the entity would pay the Company for an immediate sale on these mortgages. As such, these instruments are classified as Level 2 in the fair value hierarchy. ● Commitments to originate real estate loans for sale – The Company enters into various commitments to originate residential real estate loans for sale. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value in the other asset or other liability section of the consolidated statement of condition. The estimated fair value of these commitments is determined using quoted secondary market prices obtained from certain government-sponsored entities. Additionally, accounting guidance requires the expected net future cash flows related to the associated servicing of the loan to be included in the fair value measurement of the derivative. The expected net future cash flows are based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. Such assumptions include estimates of the cost of servicing loans, appropriate discount rate and prepayment speeds. The determination of expected net cash flows is considered a significant unobservable input contributing to the Level 3 classification of commitments to originate real estate loans for sale. ● Interest rate swap agreements – The interest rate swaps are reported at their fair value utilizing Level 2 inputs from third parties. The fair value of our interest rate swaps are determined using prices obtained from a third party advisor. The fair value measurement of the interest rate swap is determined by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates derived from observed market interest rate curves. The changes in Level 3 assets measured at fair value on a recurring basis are immaterial. Assets and liabilities measured on a non-recurring basis: December 31, 2020 December 31, 2019 Total Total (000’s omitted) Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Fair Value Impaired loans $ 0 $ 0 $ 25,063 $ 25,063 $ 0 $ 0 $ 848 $ 848 Other real estate owned 0 0 883 883 0 0 1,270 1,270 Mortgage servicing rights 0 0 682 682 0 0 56 56 Total $ 0 $ 0 $ 26,628 $ 26,628 $ 0 $ 0 $ 2,174 $ 2,174 Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, adjusted for non-observable inputs. Thus, the resulting nonrecurring fair value measurements are generally classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and, therefore, such valuations classify as Level 3. Other real estate owned (“OREO”) is valued at the time the loan is foreclosed upon and the asset is transferred to OREO. The value is based primarily on third party appraisals, less estimated costs to sell. The appraisals are sometimes further discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the customer and customer’s business. Such discounts are significant, ranging from 11% to 53% at December 31, 2020, and result in a Level 3 classification of the inputs for determining fair value. OREO is reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. The Company recovers the carrying value of OREO through the sale of the property. The ability to affect future sales prices is subject to market conditions and factors beyond the Company’s control and may impact the estimated fair value of a property. Originated mortgage servicing rights are recorded at their fair value at the time of sale of the underlying loan, and are amortized in proportion to and over the estimated period of net servicing income. The fair value of mortgage servicing rights is based on a valuation model incorporating inputs that market participants would use in estimating future net servicing income. Such inputs include estimates of the cost of servicing loans, appropriate discount rate, and prepayment speeds and are considered to be unobservable and contribute to the Level 3 classification of mortgage servicing rights. In accordance with GAAP, the Company must record impairment charges, on a nonrecurring basis, when the carrying value of a stratum exceeds its estimated fair value. Impairment is recognized through a valuation allowance. There is a valuation allowance of approximately $0.2 million at December 31, 2020. The Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. The fair value of each reporting unit is compared to the carrying amount of that reporting unit in order to determine if impairment is indicated. If so, the implied fair value of the reporting unit’s goodwill is compared to its carrying amount and the impairment loss is measured by the excess of the carrying value of the goodwill over fair value of the goodwill. In such situations, the Company performs a discounted cash flow modeling technique that requires management to make estimates regarding the amount and timing of expected future cash flows of the assets and liabilities of the reporting unit that enable the Company to calculate the implied fair value of the goodwill. It also requires use of a discount rate that reflects the current return expectation of the market in relation to present risk-free interest rates, expected equity market premiums, peer volatility indicators and company-specific risk indicators. The Company did not recognize an impairment charge during 2020 or 2019. The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis as of December 31, 2020 are as follows: Significant Significant Unobservable Valuation Unobservable Input Range (000’s omitted) Fair Value Technique Inputs (Weighted Average) Impaired loans $ 25,063 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 78.4% (52.7) % Other real estate owned 883 Fair value of collateral Estimated cost of disposal/market adjustment 11.3% - 52.9% (34.0) % Commitments to originate real estate loans for sale 14 Discounted cash flow Embedded servicing value 1.0 % Mortgage servicing rights 682 Discounted cash flow Weighted average constant prepayment rate 9.8% - 18.8% (17.6) % Weighted average discount rate 1.7% - 2.2% (2.1) % Adequate compensation $ 7/loan The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis as of December 31, 2019 are as follows: Significant Significant Unobservable Valuation Unobservable Input Range (000’s omitted) Fair Value Technique Inputs (Weighted Average) Impaired loans $ 848 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 35.0% (27.9) % Other real estate owned 1,270 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 85.7% (37.1) % Mortgage servicing rights 56 Discounted cash flow Weighted average constant prepayment rate 52.8 % Weighted average discount rate 3.00 % Adequate compensation $ 7/loan The Company determines fair values based on quoted market values, where available, estimates of present values, or other valuation techniques. Those techniques are significantly affected by the assumptions used, including, but not limited to, the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments are excluded from fair value disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The significant unobservable inputs used in the determination of the fair value of assets classified as Level 3 have an inherent measurement uncertainty that if changed could result in higher or lower fair value measurements of these assets as of the reporting date. The weighted average of the estimated cost of disposal/market adjustment for impaired loans was calculated by dividing the total of the book value of the collateral of the impaired loans classified as Level 3 by the total of the fair value of the collateral of the impaired loans classified as Level 3. The weighted average of the estimated cost of disposal/market adjustment for other real estate owned was calculated by dividing the total of the differences between the appraisal values of the real estate and the book values of the real estate divided by the totals of the appraisal values of the real estate. The weighted average of the constant prepayment rate for mortgage servicing rights was calculated by adding the constant prepayment rates used in each loan pool weighted by the balance in each loan pool. The weighted average of the discount rate for mortgage servicing rights was calculated by adding the discount rates used in each loan pool weighted by the balance in each loan pool. The carrying amounts and estimated fair values of the Company’s other financial instruments that are not accounted for at fair value at December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (000’s omitted) Value Value Value Value Financial assets: Net loans $ 7,355,083 $ 7,655,044 $ 6,840,632 $ 7,028,663 Financial liabilities: Deposits 11,224,974 11,239,628 8,994,967 8,997,551 Overnight Federal Home Loan Bank borrowings 0 0 8,300 8,300 Securities sold under agreement to repurchase, short-term 284,008 284,008 241,708 241,708 Other Federal Home Loan Bank borrowings 6,658 6,758 3,750 3,755 Subordinated notes payable 3,303 3,303 13,795 13,795 Subordinated debt held by unconsolidated subsidiary trusts 77,320 77,320 77,320 77,320 The following is a further description of the principal valuation methods used by the Company to estimate the fair values of its financial instruments. Loans have been classified as a Level 3 valuation. Fair values for variable rate loans that reprice frequently are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Deposits have been classified as a Level 2 valuation. The fair value of demand deposits, interest-bearing checking deposits, savings accounts and money market deposits is the amount payable on demand at the reporting date. The fair value of time deposit obligations are based on current market rates for similar products. Borrowings and subordinated debt held by unconsolidated subsidiary trusts have been classified as a Level 2 valuation. The fair value of FHLB overnight advances and securities sold under agreement to repurchase, short-term, is the amount payable on demand at the reporting date. Fair values for long-term borrowings and subordinated debt held by unconsolidated subsidiary trusts are estimated using discounted cash flows and interest rates currently being offered on similar securities. The difference between the carrying values of long-term borrowings and subordinated debt held by unconsolidated subsidiary trusts, and their fair values, are not material as of the reporting dates. Other financial assets and liabilities – Cash and cash equivalents have been classified as a Level 1 valuation, while accrued interest receivable and accrued interest payable have been classified as a Level 2 valuation. The fair values of each approximate the respective carrying values because the instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | NOTE S: DERIVATIVE INSTRUMENTS The Company is party to derivative financial instruments in the normal course of its business to meet the financing needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments have been limited to interest rate swap agreements, commitments to originate real estate loans held for sale and forward sales commitments. The Company does not hold or issue derivative financial instruments for trading or other speculative purposes. The Company enters into forward sales commitments for the future delivery of residential mortgage loans, and interest rate lock commitments to fund loans at a specified interest rate. The forward sales commitments are utilized to reduce interest rate risk associated with interest rate lock commitments and loans held for sale. Changes in the estimated fair value of the forward sales commitments and interest rate lock commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. At inception and during the life of the interest rate lock commitment, the Company includes the expected net future cash flows related to the associated servicing of the loan as part of the fair value measurement of the interest rate lock commitments. These derivatives are recorded at fair value, which were immaterial at December 31, 2020 and December 31, 2019. The effect of the changes to these derivatives for the years then ended was also immaterial. The Company acquired interest rate swaps in 2017 with notional amounts with certain commercial customers which totaled $14.4 million at December 31, 2020 and $16.4 million at December 31, 2019. In order to minimize the Company’s risk, these customer derivatives (pay floating/receive fixed swaps) have been offset with essentially matching interest rate swaps (pay fixed/receive floating swaps) with the Company’s counterparty totaling $14.4 million at December 31, 2020 and $16.4 million at December 31, 2019. At December 31, 2020, the weighted average receive rate of these interest rate swaps was 2.10%, the weighted average pay rate was 4.44% and the weighted average maturity was 5.2 years. At December 31, 2019, the weighted average receive rate of these interest rate swaps was 3.72%, the weighted average pay rate was 4.39% and the weighted average maturity was 6.1 years. Hedge accounting has not been applied for these derivatives. Since the terms of the swaps with the customer and the other financial institution offset each other, with the only difference being counterparty credit risk, changes in the fair value of the underlying derivative contracts are not materially different and do not significantly impact our results of operations. The Company also acquired interest rate swaps in 2017 with notional amounts totaling $5.7 million at December 31, 2020 and $6.2 million at December 31, 2019 that were designated as fair value hedges of certain fixed rate loans with municipalities which are recorded in loans in the consolidated statements of condition. At December 31, 2020, the weighted average receive rate of these interest rate swaps was 1.42%, the weighted average pay rate was 3.11% and the weighted average maturity was 12.5 years. At December 31, 2019, the weighted average receive rate of these interest rate swaps was 2.47%, the weighted average pay rate was 3.11% and the weighted average maturity was 13.5 years. The Company includes the gain or loss on the hedged items in interest and fees on loans, the same line item as the offsetting gain or loss on the related interest rate swaps. The effects of fair value accounting in the consolidated statements of income for the years ended December 31, 2020 and December 31, 2019 is immaterial. As of December 31, 2020 and December 31, 2019, the following amounts were recorded in the consolidated statement of condition related to cumulative basis adjustments for fair value hedges: (000’s omitted) Cumulative Amount of Fair Value Hedging Line Item in the Adjustment Included in the Consolidated Statement Carrying Amount Carrying Amount of of Condition in Which the of the Hedged Assets the Hedged Assets Hedged Item Is Included December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Loans $ 5,675 $ 6,390 $ (498) $ (265) Fair values of derivative instruments as of December 31, 2020 are as follows: (000’s omitted) December 31, 2020 Derivative Assets Derivative Liabilities Consolidated Statement Consolidated Statement of Condition Location Fair Value of Condition Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets $ 498 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets 1,074 Accrued interest and other liabilities $ 1,074 Commitments to originate real estate loans for sale Other assets 14 Forward sales commitments Other assets 2 Total derivatives $ 1,588 $ 1,074 Fair values of derivative instruments as of December 31, 2019 are as follows: (000’s omitted) December 31, 2019 Derivative Assets Derivative Liabilities Consolidated Statement of Consolidated Statement of Condition Condition Location Fair Value Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets $ 265 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets 586 Accrued interest and other liabilities $ 586 Total derivatives $ 851 $ 586 The Company assessed its counterparty risk at December 31, 2020 and December 31, 2019 and determined any credit risk inherent in our derivative contracts was not material. Information about the fair value of derivative financial instruments can be found in Note R to these consolidated financial statements. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2020 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | NOTE T: VARIABLE INTEREST ENTITIES The Company’s wholly-owned subsidiary CCT IV is a VIE for which the Company is not the primary beneficiary. Accordingly, the accounts of this entity are not included in the Company’s consolidated financial statements. See further information regarding CCT IV in Note H: Borrowings. In connection with the Company’s acquisition of Oneida Financial Corp, the Company acquired OPFC II which holds a 50% membership interest in 706 North Clinton, an entity formed for the purpose of acquiring and rehabilitating real property. The real property held by 706 North Clinton is principally occupied by subsidiaries of the Company. The Company analyzed the operating agreement and capital structure of 706 North Clinton and determined that it was the primary beneficiary and therefore should consolidate 706 North Clinton in its financial statements. This conclusion was based on the determination that the Company has a de facto agency relationship because of the financing arrangement between the other member of 706 North Clinton and the Bank which provides OPFC II with both the power to direct the activities of 706 North Clinton and the obligation to absorb any losses of 706 North Clinton. The carrying amount of the assets and liabilities of 706 North Clinton and the classification of these assets and liabilities in the Company’s consolidated statements of condition at December 31 is as follows: (000’s omitted) 2020 2019 Cash and cash equivalents $ 157 $ 138 Premises and equipment, net 5,782 5,945 Other assets 48 42 Total assets $ 5,987 $ 6,125 Accrued interest and other liabilities / Total liabilities $ 0 $ 1 In addition to the assets and liabilities of 706 North Clinton, the minority interest in 706 North Clinton of $3.0 million at December 31, 2020 is included in the Company’s consolidated statement of condition. The creditors of 706 North Clinton do not have a claim on the general assets of the Company. The Company’s maximum loss exposure net of minority interest in 706 North Clinton is approximately $4.3 million as of December 31, 2020, including a $1.3 million loss exposure related to the financing agreement between the other member of 706 North Clinton and the Bank. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE U: SEGMENT INFORMATION Operating segments are components of an enterprise, which are evaluated regularly by the “chief operating decision maker” in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker is the President and Chief Executive Officer of the Company. The Company has identified Banking, Employee Benefit Services and All Other as its reportable operating business segments. CBNA operates the Banking segment that provides full-service banking to consumers, businesses, and governmental units in Upstate New York as well as Northeastern Pennsylvania, Vermont and Western Massachusetts. Employee Benefit Services, which includes operating subsidiaries of BPAS, BPAS-APS, BPAS Trust Company of Puerto Rico, NRS, GTC and HB&T, provides employee benefit trust, collective investment fund, retirement plan administration, fund administration, transfer agency, actuarial, VEBA/HRA, and health and welfare consulting services. The All Other segment is comprised of: (a) wealth management services including trust services provided by the personal trust unit within the Bank, broker-dealer and investment advisory services provided by CISI, The Carta Group and OneGroup Wealth Partners, as well as asset management provided by Nottingham; and (b) full-service insurance, risk management and employee benefit services provided by OneGroup. The accounting policies used in the disclosure of business segments are the same as those described in the summary of significant accounting policies (See Note A). Information about reportable segments and reconciliation of the information to the consolidated financial statements follows: Employee Consolidated (000’s omitted) Banking Benefit Services All Other Eliminations Total 2020 Net interest income $ 367,237 $ 943 $ 223 $ 0 $ 368,403 Provision for credit losses 14,212 0 0 0 14,212 Noninterest revenue 69,578 103,456 61,599 (6,214) 228,419 Amortization of intangible assets 5,515 5,724 3,058 0 14,297 Acquisition expenses 4,933 0 0 0 4,933 Other operating expenses 255,955 60,709 46,854 (6,214) 357,304 Income before income taxes $ 156,200 $ 37,966 $ 11,910 $ 0 $ 206,076 Assets $ 13,762,325 $ 217,780 $ 82,849 $ (131,860) $ 13,931,094 Goodwill $ 690,121 $ 83,275 $ 20,312 $ 0 $ 793,708 Core deposit intangibles & Other intangibles $ 13,831 $ 32,051 $ 7,058 $ 0 $ 52,940 2019 Net interest income $ 358,334 $ 665 $ 176 $ 0 $ 359,175 Provision for credit losses 8,430 0 0 0 8,430 Noninterest revenue 75,067 99,483 59,075 (3,006) 230,619 Amortization of intangible assets 5,751 6,770 3,435 0 15,956 Acquisition expenses 8,608 0 0 0 8,608 Other operating expenses 245,870 59,428 45,170 (3,006) 347,462 Income before income taxes $ 164,742 $ 33,950 $ 10,646 $ 0 $ 209,338 Assets $ 11,225,509 $ 209,690 $ 76,351 $ (101,255) $ 11,410,295 Goodwill $ 670,223 $ 83,275 $ 20,312 $ 0 $ 773,810 Core deposit intangibles & Other intangibles $ 16,418 $ 37,775 $ 8,920 $ 0 $ 63,113 2018 Net interest income $ 344,551 $ 376 $ 128 $ 0 $ 345,055 Provision for credit losses 10,837 0 0 0 10,837 Noninterest revenue 75,399 94,449 57,204 (2,993) 224,059 Amortization of intangible assets 6,429 8,015 3,711 0 18,155 Acquisition expenses (782) 7 6 0 (769) Other operating expenses 231,362 56,275 43,259 (2,993) 327,903 Income before income taxes $ 172,104 $ 30,528 $ 10,356 $ 0 $ 212,988 Assets $ 10,397,623 $ 207,460 $ 68,288 $ (66,076) $ 10,607,295 Goodwill $ 629,916 $ 83,275 $ 20,312 $ 0 $ 733,503 Core deposit intangibles & Other intangibles $ 18,596 $ 44,545 $ 10,705 $ 0 $ 73,846 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE V: SUBSEQUENT EVENTS Companies are required to evaluate events and transactions that occur after the balance sheet date but before the date the financial statements are issued. They must recognize in the financial statements the effect of all events or transactions that provide additional evidence of conditions that existed at the balance sheet date, including the estimates inherent in the financial preparation process. Entities do not recognize the impact of events or transactions that provide evidence about conditions that did not exist at the balance sheet date but arose after that date. Such events and transactions were evaluated through the date these consolidated financial statements were available to be issued. On January 20, 2021, the Company received approval from its Board of Directors to redeem all of the $77.3 million CCT IV debentures and associated preferred securities. On February 11, 2021, the Company provided notice of the redemption to the security holders and the redemption is expected to be completed on March 15, 2021 at par. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations | Nature of Operations Community Bank System, Inc. (the “Company”) is a registered financial holding company which wholly-owns two significant consolidated subsidiaries: Community Bank, N.A. (the “Bank” or “CBNA”), and Benefit Plans Administrative Services, Inc. (“BPAS”). As of December 31, 2020 BPAS owns five subsidiaries: Benefit Plans Administrative Services, LLC (“BPA”), a provider of defined benefit contribution plan administration services; Northeast Retirement Services, LLC (“NRS”), a provider of institutional transfer agency, master recordkeeping services, fund administration, trust and retirement plan services; BPAS Actuarial & Pension Services, LLC (“BPAS-APS”), a provider of actuarial and benefit consulting services; BPAS Trust Company of Puerto Rico, a Puerto Rican trust company; and Hand Benefits & Trust Company (“HB&T”), a provider of collective investment fund administration and institutional trust services. NRS owns one subsidiary, Global Trust Company, Inc. (“GTC”), a non-depository trust company which provides fiduciary services for collective investment trusts and other products. HB&T owns one subsidiary, Hand Securities Inc. (“HSI”), an introducing broker-dealer. The Company also wholly-owns one unconsolidated subsidiary business trust formed for the purpose of issuing mandatorily-redeemable preferred securities which are considered Tier I capital under regulatory capital adequacy guidelines (see Note P). As of December 31, 2020, the Bank operated 232 full service branches operating as Community Bank, N.A. throughout 42 counties of Upstate New York, six counties of Northeastern Pennsylvania, 12 counties of Vermont and one county of Western Massachusetts, offering a range of commercial and retail banking services. The Bank owns the following operating subsidiaries: The Carta Group, Inc. (“Carta Group”), CBNA Preferred Funding Corporation (“PFC”), CBNA Treasury Management Corporation (“TMC”), Community Investment Services, Inc. (“CISI”), Nottingham Advisors, Inc. (“Nottingham”), OneGroup NY, Inc. (“OneGroup”), OneGroup Wealth Partners, Inc. ("Wealth Partners") and Oneida Preferred Funding II LLC (“OPFC II”). OneGroup is a full-service insurance agency offering personal and commercial lines of insurance and other risk management products and services. PFC and OPFC II primarily act as investors in residential and commercial real estate activities. TMC provides cash management, investment, and treasury services to the Bank. CISI, Carta Group and Wealth Partners provide broker-dealer and investment advisory services. Nottingham provides asset management services to individuals, corporations, corporate pension and profit sharing plans, and foundations. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Variable Interest Entities (“VIE”) are legal entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the legal entities to finance its activities without additional subordinated financial support. VIEs may be required to be consolidated by a company if it is determined the company is the primary beneficiary of a VIE. The primary beneficiary of a VIE is the enterprise that has: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company’s VIE’s are described in more detail in Note T to the consolidated financial statements. |
Critical Accounting Estimates in the Preparation of Financial Statements | Critical Accounting Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Critical accounting estimates include the allowance for credit losses, actuarial assumptions associated with the pension, post-retirement and other employee benefit plans, the provision for income taxes, investment valuation, the carrying value of goodwill and other intangible assets, and acquired loan valuations. |
Risk and Uncertainties | Risk and Uncertainties In the normal course of its business, the Company encounters economic and regulatory risks. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different basis, from its interest-earning assets. The Company’s primary credit risk is the risk of default on the Company’s loan portfolio that results from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects potential changes in the value of collateral underlying loans, the fair value of investment securities, and loans held for sale. The Company is subject to regulations of various governmental agencies. These regulations can change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required credit loss allowances, and operating restrictions resulting from the regulators’ judgments based on information available to them at the time of their examinations. The extent to which the novel coronavirus ("COVID-19") impacts the Company's business and financial results will depend on numerous evolving factors including, but not limited to: the magnitude and duration of COVID-19, the extent to which it will impact national and international macroeconomic conditions including interest rates, unemployment rates, the speed of the anticipated recovery, and governmental and business reactions to the pandemic. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of December 31, 2020 and through the date of this Annual Report on Form 10-K. The accounting matters assessed included, but were not limited to, the Company's allowance for credit losses, decrease in fee and interest income, and the carrying value of the goodwill and other long-lived assets. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the newly adopted guidance. Topic 606 is applicable to the Company’s noninterest revenue streams including its deposit related fees, electronic payment interchange fees, merchant income, trust, asset management and other wealth management revenues, insurance commissions and benefit plan services income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Noninterest revenue streams in-scope of Topic 606 are discussed below. Deposit Service Fees Deposit service fees consist of account activity fees, monthly service fees, check orders, debit and credit card income, ATM fees, Merchant services income and other revenues from processing wire transfers, bill pay service, cashier’s checks and foreign exchange. Debit and credit card income is primarily comprised of interchange fees earned at the time the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. The Company’s performance obligation for deposit service fees is generally satisfied, and the related revenue recognized, when the services are rendered or the transaction has been completed. Payment for deposit service fees is typically received at the time it is assessed through a direct charge to customers’ accounts or on a monthly basis. Deposit service fees revenue primarily relates to the Company’s Banking operating segment. Other Banking Services Other banking services consists of other recurring revenue streams such as commissions from sales of credit life insurance, safe deposit box rental fees, mortgage banking income, bank owned life insurance income and other miscellaneous revenue streams. Commissions from the sale of credit life insurance are recognized at the time of sale of the policies. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Mortgage banking income and bank owned life insurance income are not within the scope of Topic 606. Other banking services revenue primarily relates to the Company’s Banking operating segment. Employee Benefit Services Employee benefit services income consists of revenue received from retirement plan services, collective investment fund services, fund administration, transfer agency, consulting and actuarial services. The Company’s performance obligation that relates to plan services are satisfied over time and the resulting fees are recognized monthly or quarterly, based upon the market value of the assets under management and the applicable fee rate or on a time expended basis. Payment is generally received a few days after month end or quarter end. The Company does not earn performance-based incentives. Transactional services such as consulting services, mailings, or other ad hoc services are provided to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Employee benefit services revenue primarily relates to the Company’s Employee Benefit Services operating segment. Insurance Services Insurance services primarily consists of commissions received on insurance product sales and consulting services. The Company acts in the capacity of a broker or agent between the Company’s customer and the insurance carrier. The Company’s performance obligation related to insurance sales for both property and casualty insurance and employee benefit plans is generally satisfied upon the later of the issuance or effective date of the policy. The Company’s performance obligation related to consulting services is considered transactional in nature and is generally satisfied when the services have been completed and related revenue recognized at a point in time. Payment is received at the time services are rendered. The Company earns performance based incentives, commonly known as contingency payments, which usually are based on certain criteria established by the insurance carrier such as premium volume, growth and insured loss ratios. Contingent payments are accrued for based upon management’s expectations for the year. Commission expense associated with sales of insurance products is expensed as incurred. Insurance services revenue primarily relates to the Company’s All Other operating segment. Wealth Management Services Wealth management services income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company generally has two types of performance obligations related to these services. The Company’s performance obligation that relates to advisory and administration services are satisfied over time and the resulting fees are recognized monthly, based upon the market value of the assets under management and the applicable fee rate. Payment is generally received soon after month end or quarter end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Transactional services such as tax return preparation services, purchases and sales of investments and insurance products are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e. as incurred). Payment is generally received on a monthly basis. Wealth management services revenue primarily relates to the Company’s All Other operating segment. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2020, $30.3 million of accounts receivable, including $7.7 million of unbilled fee revenue, and $1.4 million of unearned revenue was recorded in the consolidated statements of condition. As of December 31, 2019, $26.8 million of accounts receivable, including $7.5 million of unbilled fee revenue, and $1.8 million of unearned revenue was recorded in the consolidated statements of condition. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient method which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and highly liquid investments with original maturities of less than 90 days. The carrying amounts reported in the consolidated statements of condition for cash and cash equivalents approximate those assets’ fair values. As of December 31, 2020 and 2019, cash and cash equivalents reported in the consolidated statements of condition included cash due from banks of $7.7 million and $10.4 million, respectively. Cash due from banks may at times exceed federally insured limits. |
Investment Securities | Investment Securities The Company can classify its investments in debt securities as held-to-maturity, available-for-sale, or trading. Held-to-maturity securities are those for which the Company has the positive intent and ability to hold until maturity, and are reported at cost, which is adjusted for amortization of premiums and accretion of discounts. The Company did not use the held-to-maturity classification in 2019 or 2020. Available-for-sale debt securities are reported at fair value with net unrealized gains and losses reflected as a separate component of shareholders’ equity, net of applicable income taxes. None of the Company’s investment securities have been classified as trading securities at December 31, 2020 or December 31, 2019. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses are recorded on the trade date and determined using the specific identification method. Equity securities with a readily determinable fair value are reported at fair value with net unrealized gains and losses recognized in the consolidated statements of income. Certain equity securities that do not have a readily determinable fair value are stated at cost, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. These securities include restricted stock of the Federal Reserve Bank of New York (“Federal Reserve”) and the Federal Home Loan Bank of New York and the Federal Home Loan Bank of Boston (collectively referred to as “FHLB”), as well as other equity securities. Fair values for investment securities are based upon quoted market prices, where available. If quoted market prices are not available, fair values are based upon quoted market prices of comparable instruments, or a discounted cash flow model using market estimates of interest rates and volatility. Allowance for Credit Losses – Debt Securities For held-to-maturity debt securities, the Company measures expected credit losses on a collective basis by major security type. The estimates of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on held-to-maturity securities is excluded from the estimates of credit losses. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the security structure, recent security collateral performance metrics, if applicable, external credit ratings, failure of the issuer to make scheduled interest or principal payments, judgment about and expectations of future performance, and relevant independent industry research, analysis, and forecasts. The severity of the impairment and the length of time the security has been impaired is also considered in the assessment. This assessment involves a high degree of subjectivity and judgment that is based on the information available to management at a point in time. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected from the security is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit losses in the consolidated statements of income. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $13.3 million at December 31, 2020 and is excluded from the estimate of credit losses. Prior to the adoption of ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of allowance for credit losses. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Mortgage loans held for sale are carried at fair value and are included in loans held for sale on the consolidated statements of condition. Fair values for variable rate loans that reprice frequently are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest approximates its fair value. Interest on loans is accrued and credited to operations based upon the principal amount outstanding. Nonrefundable loan fees and related direct costs are deferred and included in the loan balances where they are amortized over the life of the loan as an adjustment to loan yield using the effective yield method. Premiums and discounts on purchased loans are amortized using the effective yield method over the life of the loans. Accrued interest receivable on loans, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $22.2 million at December 31, 2020 and is excluded from the estimate of credit losses and amortized cost basis of loans. An allowance for credit losses is not measured for accrued interest receivable on loans as the Company writes off the uncollectible accrued interest balance in a timely manner upon recognition of credit deterioration of the underlying loan. The Company places a loan on nonaccrual status when the loan becomes 90 days past due (or sooner, if management concludes collection is doubtful), except when, in the opinion of management, it is well-collateralized and in the process of collection. A loan may be placed on nonaccrual status earlier than 90 days past due if there is deterioration in the financial position of the borrower or if other conditions of the loan so warrant. When a loan is placed on nonaccrual status, uncollected accrued interest is reversed against interest income and the amortization of nonrefundable loan fees and related direct costs is discontinued. Interest income during the period the loan is on nonaccrual status is recorded on a cash basis after recovery of principal is reasonably assured. Nonaccrual loans are returned to accrual status when management determines that the borrower’s performance has improved and that both principal and interest are collectible. This generally requires a sustained period of timely principal and interest payments and a well-documented credit evaluation of the borrower’s financial condition. The Company’s charge-off policy by loan type is as follows: ● Business lending loans are generally charged-off to the extent outstanding principal exceeds the fair value of estimated proceeds from collection efforts, including liquidation of collateral. The charge-off is recognized when the loss becomes reasonably quantifiable. ● Consumer installment loans are generally charged-off to the extent outstanding principal exceeds the fair value of collateral, and are recognized by the end of the month in which the loan becomes 90 days past due. ● Consumer mortgage and home equity loans are generally charged-off to the extent outstanding principal exceeds the fair value of the property, less estimated costs to sell, and are recognized when the loan becomes 180 days past due. Allowance for Credit Losses – Loans The allowance for credit losses is a valuation account that is netted against the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, acquired loans, delinquency level, risk ratings or term of loans as well as changes in macroeconomic conditions, such as changes in unemployment rates, property values such as home prices, commercial real estate prices and automobile prices, gross domestic product, recession probability, and other relevant factors. The segments of the Company's loan portfolio are disaggregated into the following classes that allow management to monitor risk and performance: ● Business lending is comprised of general purpose commercial and industrial loans including, but not limited to agricultural-related and dealer floor plans, loans to not-for-profit enterprises, as well as mortgages on commercial property and Paycheck Protection Program ("PPP") loans. The portfolio segment is further broken into portfolio classes based on risks associated with the collateral supporting the loans. Each class of business lending can also have different payment structures. Business lending loans are generally higher dollar loans and a large portion are risk rated at least annually. ● Consumer mortgages consist primarily of fixed rate residential instruments, typically 10 - 30 years in contractual term, secured by first liens on real property. FICO scores are used to monitor higher risks related to this type of lending with FICO AB referring to higher tiered loans with FICO scores greater than or equal to 720 as compared to FICO CDE with lower FICO scores less than 720 and potentially higher risk. ● Consumer indirect consists primarily of installment loans originated through selected dealerships and are generally secured by automobiles, marine and other recreational vehicles. Collateral securing the loans was used to further disaggregate this portfolio as charge-offs can vary depending on the purpose of the loan. Non-auto loans often have longer terms, and generally have higher risk due to declines in collateral value given the nature of the property. ● Consumer direct consists of all other loans to consumers such as personal installment loans and check credit lines of credit. ● Home equity products are installment loans or lines of credit most often secured by a first or second lien position on residential real estate with terms up to 30 years. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist, including collateral type, credit ratings/scores, size, duration, interest rate structure, industry, geography, origination vintage, and payment structure. The Company has identified the following portfolio segments and classes and measures the allowance for credit losses using the following methods: Loan Portfolio Segment Loan Portfolio Class Allowance for Credit Losses Methodology Business lending Commercial real estate multi family Cumulative loss rate Business lending Commercial real estate non-owner occupied Cumulative loss rate Business lending Commercial real estate owner occupied Cumulative loss rate Business lending Commercial and industrial loans Vintage loss rate Business lending Commercial and industrial lines of credit Line loss Business lending Municipal Cumulative loss rate Business lending Other business Cumulative loss rate Business lending Paycheck Protection Program Cumulative loss rate Consumer mortgage Consumer mortgage FICO AB Cumulative loss rate Consumer mortgage Consumer mortgage FICO CDE Cumulative loss rate Consumer indirect Indirect new auto Vintage loss rate Consumer indirect Indirect used auto Vintage loss rate Consumer indirect Indirect non-auto Vintage loss rate Consumer direct Consumer check credit Line loss Consumer direct Consumer direct Vintage loss rate Home equity Home equity fixed rate Vintage loss rate Home equity Home equity lines of credit Line loss The cumulative loss rate method uses historical loss data applied against multiple pools of loans and uses a quantitatively based management overlay in order to capture the risk for a loan's entire expected life. These loss rates are then applied to current balances to achieve a required reserve before qualitative adjustments. The line loss method calculates the quantitative required reserve for lines of credit. This method contains several different underlying calculations including average annual loss rate, pay-down rate, cumulative loss, average draw percentage, and undrawn liability reserve. The vintage loss rate method calculates annual loss rates by origination year. The results of this model are then applied to outstanding balances, which correspond to the origination period for each annual loss rate. In addition to the risk characteristics noted above, management considers the portion of acquired loans to the overall segment balance, as well as current delinquency and charge-off trends compared to historical time periods. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Expected credit losses are estimated over the contractual term of the loans and adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Certain business lending, consumer direct, and home equity loans do not have stated maturities. In determining the estimated life of these loans, management first estimates the future cash flows expected to be received and then applies those expected future cash flows to the balance. Expected credit losses for lines of credit with no stated maturity are determined by estimating the amount and timing of all principal payments expected to be received after the reporting period and allocating those principal payments between the balance outstanding as of the reporting period and the balance of future receivables expected to be originated through subsequent usage of the unconditionally cancellable loan commitment associated with the account until the expected payments have been fully allocated. An additional allowance for credit loss is recorded for the excess of the balance outstanding as of the reporting period over the expected principal payments allocated to that balance. Prior to the adoption of ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructuring A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a troubled debt restructuring ("TDR"). The allowance for credit loss on a TDR is measured using the same method as all other loans, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the allowance for credit loss is determined by discounting the expected future cash flows at the original interest rate of the loan. Refer to Note D: Loans for the Company's policy regarding COVID-19 related financial hardship payment deferrals. Allowance for Credit Losses - Off-balance-sheet credit exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. There are unfunded commitments for lines of credit within each of the Company's loan portfolio segments except consumer indirect. The allowance for credit losses on off-balance-sheet credit exposures is adjusted as a provision for (or reversal of) credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics that are the same as the adjustments considered for the loan portfolio. Purchased Credit Deteriorated (“PCD”) Loans The Company has purchased loans, some of which have experienced a more-than-insignificant credit deterioration since origination. The Company's policy for reviewing what meets the threshold of the definition of a more-than-insignificant credit deterioration includes loans that are delinquent more than 30 days, loans that have historical delinquencies of more than 30 days at least three times since origination, risk rating downgrades since origination, loans with multiple payment deferrals, loans considered to be troubled debt restructurings, specifically impaired loans or loans with certain documented policy exceptions, further refined based on loan-specific facts and circumstances. PCD loans are initially recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded as provision for (or reversal of) credit losses. Prior to the adoption of ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) on January 1, 2020, acquired loans that had evidence of deterioration in credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments were accounted for as impaired loans under ASC 310-30. Acquired impaired loans were initially recorded at fair value with no initial allowance for credit losses recorded at acquisition. Non-Purchased Credit Deteriorated (“non-PCD”) Loans Acquired loans that are not deemed to not have experienced a more-than-insignificant credit deterioration since origination are considered non-PCD. At the acquisition date, a fair value adjustment is recorded that includes both credit and interest rate considerations. Fair value adjustments may be discounts (or premiums) to a loan’s cost basis and are accreted (or amortized) to net interest income (or expense) over the loan’s remaining life. Fair value adjustments for revolving loans are accreted (or amortized) using a straight line method. Term loans are accreted (or amortized) using the constant effective yield method. A provision for credit losses is also recorded at acquisition for the credit considerations on non-PCD loans. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans are the same as originated loans and subsequent changes to the allowance for credit losses are recorded as provision for (or reversal of) credit losses. Prior to the adoption of ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) on January 1, 2020, acquired loans that did not meet the requirements under ASC 310-30 were considered acquired non-impaired loans and were accounted for in accordance with ASC 310-20. Acquired non-impaired loans were initially recorded at fair value with no initial allowance for credit losses recorded at acquisition. |
Intangible Assets | Intangible Assets Intangible assets include core deposit intangibles, customer relationship intangibles and goodwill arising from acquisitions. Core deposit intangibles and customer relationship intangibles are amortized on either an accelerated or straight-line basis over periods ranging from seven The Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. The implied fair value of a reporting unit’s goodwill is compared to its carrying amount and the impairment loss is measured by the excess of the carrying value over fair value. The fair value of each reporting unit is compared to the carrying amount of that reporting unit in order to determine if impairment is indicated. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Computer software costs that are capitalized include only external direct costs of obtaining and installing the software. The Company has not developed any internal use software. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Useful lives range from two three and hardware |
Leases | Leases The Company occupies certain offices and uses certain equipment under non-cancelable operating lease agreements. The Company determines if an arrangement is a lease at inception. The right-of-use assets associated with operating leases are recorded in premises and equipment in the Company’s consolidated statements of condition. The lease liabilities associated with operating leases are included in accrued interest and other liabilities in the Company’s consolidated statements of condition. Right-of-use assets represent the Company’s right to use the underlying assets for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the associated leases. Operating lease right-of-use assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company uses interest rates on advances from the FHLB available at the time of commencement to determine the present value of lease payments. The operating lease right-of-use assets include any lease payments made at the time of commencement and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term and is included in occupancy and equipment expense in the Company’s consolidated statements of income. The Company elected to account for lease and non-lease components separately, applies a portfolio approach to account for the lease right-of-use assets and liabilities for certain equipment leases and elected to exclude leases with a term of 12 months or less from the recognition and measurement policies described above. |
Other Real Estate | Other Real Estate Other real estate owned is comprised of properties acquired through foreclosure, or by deed in lieu of foreclosure. These assets are carried at fair value less estimated costs of disposal. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for credit losses. Any subsequent reduction in value is recognized by a charge to income. Operating costs associated with the properties are charged to expense as incurred. At December 31, 2020 and 2019, other real estate totaled $0.9 million and $1.3 million, respectively, and is included in other assets. |
Mortgage Servicing Rights | Mortgage Servicing Rights Originated mortgage servicing rights are recorded at their fair value at the time of sale of the underlying loan, and are amortized in proportion to and over the period of estimated net servicing income or loss. The Company uses a valuation model that calculates the present value of future cash flows to determine the fair value of servicing rights. In using this valuation method, the Company incorporates assumptions that market participants would use in estimating future net servicing income, which includes estimates of the servicing cost per loan, the discount rate, and prepayment speeds. The carrying value of the originated mortgage servicing rights is included in other assets and is evaluated quarterly for impairment using these same market assumptions. The amount of impairment recognized is the amount by which the carrying value of the capitalized servicing rights for a stratum exceeds estimated fair value. Impairment is recognized through a valuation allowance. |
Treasury Stock | Treasury Stock Repurchases of shares of the Company’s common stock are recorded at cost as a reduction of shareholders’ equity. Reissuance of shares of treasury stock is recorded at average cost. |
Income Taxes | Income Taxes The Company and its subsidiaries file a consolidated federal income tax return. Provisions for income taxes are based on taxes currently payable or refundable as well as deferred taxes that are based on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are reported in the consolidated financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority having full knowledge of all relevant information. A tax position meeting the more-likely-than-not recognition threshold should be measured at the largest amount of benefit for which the likelihood of realization upon ultimate settlement exceeds 50 percent. Should tax laws change or the taxing authorities determine that management’s assumptions were inappropriate, an adjustment may be required which could have a material effect on the Company’s results of operations. |
Investments in Real Estate Limited Partnerships | Investments in Real Estate Limited Partnerships The Company has investments in various real estate limited partnerships that acquire, develop, own and operate low and moderate-income housing. The Company’s ownership interest in these limited partnerships ranges from 5.00% to 99.99% as of December 31, 2020. These investments are made directly in Low Income Housing Tax Credit, or LIHTC, partnerships formed by third parties. As a limited partner in these operating partnerships, the Company receives tax credits and tax deductions for losses incurred by the underlying properties. The Company accounts for its ownership interest in LIHTC partnerships in accordance with Accounting Standards Update (“ASU”) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects |
Repurchase Agreements | Repurchase Agreements The Company sells certain securities under agreements to repurchase. These agreements are treated as collateralized financing transactions. These secured borrowings are reflected as liabilities in the accompanying consolidated statements of condition and are recorded at the amount of cash received in connection with the transaction. Short-term securities sold under agreements to repurchase generally mature within one day from the transaction date. Securities, generally U.S. government and agency securities, pledged as collateral under these financing arrangements can be repledged by the secured party. Additional collateral may be required based on the fair value of the underlying securities. |
Retirement Benefits | Retirement Benefits The Company provides defined benefit pension benefits to eligible employees and post-retirement health and life insurance benefits to certain eligible retirees. The Company also provides deferred compensation and supplemental executive retirement plans for selected current and former employees, officers, and directors. Expense under these plans is charged to current operations and consists of several components of net periodic benefit cost based on various actuarial assumptions regarding future experience under the plans, including discount rate, rate of future compensation increases and expected return on plan assets. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company accounts for derivative financial instruments at fair value. If certain conditions are met, a derivative may be specifically designated as (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (“fair value hedge”), (2) a hedge of the exposure to variable cash flows of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest revenues. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest revenues. Cash flows on hedges are classified in the consolidated statement of cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking the fair value or cash flow hedges to specific assets and liabilities on the statement of condition or to specific commitments or forecasted transactions. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded in noninterest revenues. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued, but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Assets Under Management or Administration | Assets Under Management or Administration Assets held in fiduciary or agency capacities for customers are not included in the accompanying consolidated statements of condition as they are not assets of the Company. All fees associated with providing asset management services are recorded on an accrual basis of accounting and are included in noninterest income. |
Advertising | Advertising Advertising costs amounting to approximately $6.1 million, $7.1 million and $5.1 million for the years ending December 31, 2020, 2019 and 2018, respectively, are nondirect response in nature and expensed as incurred. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company owns life insurance policies on certain current and former employees and directors where the Bank is the beneficiary. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value (“CSV”) adjusted for other charges or other amounts due that are probable at settlement. Increases in the CSV of the policies, as well as the death benefits received, net of any CSV, are recorded in noninterest income, and are not subject to income taxes. |
Earnings Per Share | Earnings Per Share Using the two-class method, basic earnings per common share is computed based upon net income available to common shareholders divided by the weighted average number of common shares outstanding during each period, which excludes the outstanding unvested restricted stock. Diluted earnings per share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of stock options using the treasury stock method. Stock options where the exercise price is greater than the average market price of common shares were not included in the computation of earnings per diluted share as they would have been anti-dilutive. Shares held in rabbi trusts related to deferred compensation plans are considered outstanding for purposes of computing earnings per share. |
Stock-based Compensation | Stock-based Compensation Companies are required to measure and record compensation expense for stock options and other share-based payments on the instruments’ fair value on the date of grant. Stock-based compensation expense is recognized ratably over the requisite service period for all awards (see Note L). |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The Company determines fair values based on quoted market values where available or on estimates using present values or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments are excluded from this disclosure requirement. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The fair values of investment securities, loans, deposits, and borrowings have been disclosed in Note R. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior years’ balances to conform to the current year presentation. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) The Company adopted ASC 326 on January 1, 2020 using a modified retrospective approach for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net cumulative-effect adjustment that increased retained earnings by $1.1 million. This adjustment was a result of a $3.1 million adjustment to loans, partially offset by a $1.4 million increase in the allowance for credit losses and a $0.6 million increase in other liabilities related to the allowance for off-balance-sheet credit exposures and deferred taxes. The adoption of ASU No. 2016-13 did not result in a material allowance for credit losses on the Company’s available-for-sale debt securities or its other instruments carried at amortized cost. The Company’s regulators permit financial institutions to “phase-in” the impact of CECL on its regulatory capital ratios for up to 5 years with transitional relief of incremental capital requirements. The Company did not utilize the phased-in approach and recorded the entire cumulative-effect adjustment against its regulatory capital at the time of adoption. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration ("PCD") that were previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with this standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $3.1 million of allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate beginning on January 1, 2020. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350) In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements (Topic 820) |
New Accounting Pronouncements | New Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (Subtopic 715-20) In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of portfolio segments and allowances for credit losses | Loan Portfolio Segment Loan Portfolio Class Allowance for Credit Losses Methodology Business lending Commercial real estate multi family Cumulative loss rate Business lending Commercial real estate non-owner occupied Cumulative loss rate Business lending Commercial real estate owner occupied Cumulative loss rate Business lending Commercial and industrial loans Vintage loss rate Business lending Commercial and industrial lines of credit Line loss Business lending Municipal Cumulative loss rate Business lending Other business Cumulative loss rate Business lending Paycheck Protection Program Cumulative loss rate Consumer mortgage Consumer mortgage FICO AB Cumulative loss rate Consumer mortgage Consumer mortgage FICO CDE Cumulative loss rate Consumer indirect Indirect new auto Vintage loss rate Consumer indirect Indirect used auto Vintage loss rate Consumer indirect Indirect non-auto Vintage loss rate Consumer direct Consumer check credit Line loss Consumer direct Consumer direct Vintage loss rate Home equity Home equity fixed rate Vintage loss rate Home equity Home equity lines of credit Line loss |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACQUISITIONS | |
Schedule of estimated fair value of assets acquired and liabilities assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed after considering the measurement period adjustments described above: 2020 2019 2018 (000s omitted) Steuben Kinderhook Other (1) Total Other (2) Consideration paid : Cash $ 21,613 $ 93,384 $ 1,650 $ 95,034 $ 1,753 Community Bank System, Inc. common stock 76,942 0 0 0 0 Total net consideration paid 98,555 93,384 1,650 95,034 1,753 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 55,973 90,381 0 90,381 16 Investment securities 180,497 39,770 0 39,770 0 Loans, net of allowance for credit losses on PCD loans (3) 339,017 479,877 0 479,877 0 Premises and equipment, net 7,764 13,970 0 13,970 10 Accrued interest and fees receivable 2,701 1,130 0 1,130 0 Other assets 17,675 14,109 0 14,109 105 Core deposit intangibles 2,928 3,573 0 3,573 0 Other intangibles 1,196 0 1,650 1,650 1,343 Deposits (516,274) (568,161) 0 (568,161) 0 Other liabilities (5,095) (2,922) 0 (2,922) (31) Other Federal Home Loan Bank borrowings (6,000) (2,420) 0 (2,420) 0 Subordinated notes payable 0 (13,831) 0 (13,831) 0 Subordinated debt held by unconsolidated subsidiary trusts (2,062) (2,062) 0 (2,062) 0 Total identifiable assets, net 78,320 53,414 1,650 55,064 1,443 Goodwill $ 20,235 $ 39,970 $ 0 $ 39,970 $ 310 (1) Includes amounts related to both acquisitions completed by CISI in 2019. (2) Includes amounts related to the Penna, Styles Bridges and HR Consultants acquisitions. (3) Acquisition-related allowance for credit losses on purchased credit deteriorated ("PCD") loans applicable beginning in 2020. |
Schedule of loans acquired | (000s omitted) PCD Loans Par value of PCD loans at acquisition $ 35,906 Allowance for credit losses at acquisition (668) Non-credit premium at acquisition 103 Fair value of PCD loans at acquisition $ 35,341 The following is a summary of the remaining loans acquired from Steuben for which there was no evidence of a more-than-insignificant deterioration in credit quality since origination at the date of acquisition: (000s omitted) Non-PCD Loans Contractually required principal and interest at acquisition $ 400,738 Contractual cash flows not expected to be collected (2,994) Expected cash flows at acquisition 397,744 Interest component of expected cash flows (94,068) Fair value of non-PCD loans at acquisition $ 303,676 The following is a summary of the loans acquired from Kinderhook at the date of acquisition: Acquired Acquired Total Impaired Non-impaired Acquired (000s omitted) Loans Loans Loans Contractually required principal and interest at acquisition $ 13,350 $ 636,384 $ 649,734 Contractual cash flows not expected to be collected (4,176) (5,472) (9,648) Expected cash flows at acquisition 9,174 630,912 640,086 Interest component of expected cash flows (551) (159,658) (160,209) Fair value of acquired loans $ 8,623 $ 471,254 $ 479,877 The fair value of the Company’s common stock issued for the Steuben acquisition was determined using the market close price of the stock on June 12, 2020. |
Schedule of pro forma financial information | Pro Forma (Unaudited) Year Ended December 31, (000s omitted) 2020 2019 2018 Total revenue, net of interest expense $ 607,382 $ 626,229 $ 594,174 Net income 171,147 180,237 167,914 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INVESTMENT SECURITIES | |
Schedule of amortized cost and estimated fair value of investment securities | The amortized cost and estimated fair value of investment securities as of December 31 are as follows: 2020 2019 Gross Gross Gross Gross Amortized Unrealized Unrealized Estimated Amortized Unrealized Unrealized Estimated (000's omitted) Cost Gains Losses Fair Value Cost Gains Losses Fair Value Available-for-Sale Portfolio: U.S. Treasury and agency securities $ 2,423,236 $ 94,741 $ 16,595 $ 2,501,382 $ 2,030,060 $ 21,674 $ 7,975 $ 2,043,759 Obligations of state and political subdivisions 451,028 24,632 0 475,660 497,852 14,382 26 512,208 Government agency mortgage-backed securities 506,540 16,280 182 522,638 428,491 5,478 1,107 432,862 Corporate debt securities 4,499 137 1 4,635 2,527 1 0 2,528 Government agency collateralized mortgage obligations 42,476 1,111 10 43,577 52,621 482 32 53,071 Total available-for-sale portfolio $ 3,427,779 $ 136,901 $ 16,788 $ 3,547,892 $ 3,011,551 $ 42,017 $ 9,140 $ 3,044,428 Equity and other Securities: Equity securities, at fair value $ 251 $ 194 $ 0 $ 445 $ 251 $ 200 $ 0 $ 451 Federal Home Loan Bank common stock 7,468 0 0 7,468 7,246 0 0 7,246 Federal Reserve Bank common stock 33,916 0 0 33,916 30,922 0 0 30,922 Other equity securities, at adjusted cost 4,876 750 0 5,626 4,546 750 0 5,296 Total equity and other securities $ 46,511 $ 944 $ 0 $ 47,455 $ 42,965 $ 950 $ 0 $ 43,915 |
Schedule of investment securities that have been in a continuous unrealized loss position for less than or greater than twelve months | A summary of investment securities that have been in a continuous unrealized loss position for less than or greater than twelve months is as follows: As of December 31, 2020 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Unrealized Unrealized Unrealized (000's omitted) # Fair Value Losses # Fair Value Losses # Fair Value Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 13 $ 831,015 $ 16,595 0 $ 0 $ 0 13 $ 831,015 $ 16,595 Obligations of state and political subdivisions 1 358 0 0 0 0 1 358 0 Government agency mortgage-backed securities 89 75,992 182 2 14 0 91 76,006 182 Corporate debt securities 1 1,001 1 0 0 0 1 1,001 1 Government agency collateralized mortgage obligations 13 5,246 10 1 0 0 14 5,246 10 Total available-for-sale investment portfolio 117 $ 913,612 $ 16,788 3 $ 14 $ 0 120 $ 913,626 $ 16,788 As of December 31, 2019 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Unrealized Unrealized Unrealized (000's omitted) # Fair Value Losses # Fair Value Losses # Fair Value Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 12 $ 592,678 $ 7,970 5 $ 25,998 $ 5 17 $ 618,676 $ 7,975 Obligations of state and political subdivisions 21 22,716 26 0 0 0 21 22,716 26 Government agency mortgage-backed securities 50 89,237 341 52 52,975 766 102 142,212 1,107 Government agency collateralized mortgage obligations 5 5,971 14 5 4,405 18 10 10,376 32 Total available-for-sale investment portfolio 88 $ 710,602 $ 8,351 62 $ 83,378 $ 789 150 $ 793,980 $ 9,140 |
Schedule of amortized cost and estimated fair value of debt securities by contractual maturity | The amortized cost and estimated fair value of debt securities at December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-Sale Amortized (000's omitted) Cost Fair Value Due in one year or less $ 215,400 $ 217,938 Due after one through five years 732,939 768,761 Due after five years through ten years 460,678 496,977 Due after ten years 1,469,746 1,498,001 Subtotal 2,878,763 2,981,677 Government agency mortgage-backed securities 506,540 522,638 Government agency collateralized mortgage obligations 42,476 43,577 Total $ 3,427,779 $ 3,547,892 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of loans receivable, net | (000’s omitted) 2020 2019 Business lending $ 3,440,077 $ 2,775,876 Consumer mortgage 2,401,499 2,430,902 Consumer indirect 1,021,885 1,113,062 Consumer direct 152,657 184,378 Home equity 399,834 386,325 Gross loans, including deferred origination costs 7,415,952 6,890,543 Allowance for credit losses (60,869) (49,911) Loans, net of allowance for credit losses $ 7,355,083 $ 6,840,632 |
Schedule of aggregate amounts loaned to related parties | Certain directors and executive officers of the Company, as well as associates of such persons, are loan customers. Loans to these individuals were made in the ordinary course of business under normal credit terms and do not have more than a normal risk of collection. Following is a summary of the aggregate amount of such loans during 2020 and 2019. (000’s omitted) 2020 2019 Balance at beginning of year $ 17,486 $ 20,661 New loans 4,194 5,720 Payments (6,131) (8,895) Balance at end of year $ 15,549 $ 17,486 |
Schedule of aged analysis of past due loans by class | The following table presents the aging of the amortized cost basis of the Company’s past due loans, including purchased credit deteriorated (“PCD”) loans, by segment as of December 31, 2020: Past Due 90+ Days Past 30 – 89 Due and Total (000’s omitted) Days Still Accruing Nonaccrual Past Due Current Total Loans Business lending $ 4,896 $ 59 $ 55,709 $ 60,664 $ 3,379,413 $ 3,440,077 Consumer mortgage 13,236 3,051 14,970 31,257 2,370,242 2,401,499 Consumer indirect 13,161 219 1 13,381 1,008,504 1,021,885 Consumer direct 1,170 28 3 1,201 151,456 152,657 Home equity 2,296 565 2,246 5,107 394,727 399,834 Total $ 34,759 $ 3,922 $ 72,929 $ 111,610 $ 7,304,342 $ 7,415,952 The following is an aged analysis of the Company’s past due loans by segment as of December 31, 2019: Legacy Loans Past Due 90+ Days Past 30 – 89 Due and Total (000’s omitted) days Still Accruing Nonaccrual Past Due Current Total Loans Business lending $ 3,936 $ 126 $ 3,840 $ 7,902 $ 1,848,683 $ 1,856,585 Consumer mortgage 10,990 2,052 10,131 23,173 1,973,543 1,996,716 Consumer indirect 12,673 125 0 12,798 1,094,510 1,107,308 Consumer direct 1,455 76 0 1,531 174,445 175,976 Home equity 1,508 328 1,444 3,280 310,727 314,007 Total $ 30,562 $ 2,707 $ 15,415 $ 48,684 $ 5,401,908 $ 5,450,592 Acquired Loans Past Due 90+ Days Past 30 – 89 Due and Total Acquired (000’s omitted) days Still Accruing Nonaccrual Past Due Impaired (1) Current Total Loans Business lending $ 8,518 $ 2,173 $ 570 $ 11,261 $ 11,797 $ 896,233 $ 919,291 Consumer mortgage 890 277 2,386 3,553 0 430,633 434,186 Consumer indirect 79 31 0 110 0 5,644 5,754 Consumer direct 59 0 52 111 0 8,291 8,402 Home equity 744 238 412 1,394 0 70,924 72,318 Total $ 10,290 $ 2,719 $ 3,420 $ 16,429 $ 11,797 $ 1,411,725 $ 1,439,951 (1) Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans. |
Schedule of non-business impaired loans | All loan classes are collectively evaluated for impairment except business lending. A summary of individually evaluated impaired business lending loans as of December 31, 2020 and December 31, 2019 follows: December 31, December 31, (000’s omitted) 2020 2019 Loans with allowance allocation $ 27,437 $ 0 Loans without allowance allocation 8,138 1,414 Carrying balance 35,575 1,414 Contractual balance 38,362 2,944 Specifically allocated allowance 3,874 0 |
Schedule of troubled debt restructurings on financing receivables | Information regarding TDRs as of December 31, 2020 and December 31, 2019 is as follows: December 31, 2020 December 31, 2019 (000’s omitted) Nonaccrual Accruing Total Nonaccrual Accruing Total # Amount # Amount # Amount # Amount # Amount # Amount Business lending 6 $ 529 4 $ 191 10 $ 720 8 $ 681 3 $ 201 11 $ 882 Consumer mortgage 56 2,413 48 2,266 104 4,679 59 2,638 47 1,892 106 4,530 Consumer indirect 0 0 86 951 86 951 0 0 84 941 84 941 Consumer direct 0 0 23 85 23 85 0 0 23 101 23 101 Home equity 11 285 13 264 24 549 13 290 11 238 24 528 Total 73 $ 3,227 174 $ 3,757 247 $ 6,984 80 $ 3,609 168 $ 3,373 248 $ 6,982 The following table presents information related to loans modified in a TDR during the years ended December 31, 2020 and 2019. Of the loans noted in the table below, all consumer mortgage loans for the years ended December 31, 2020 and December 31, 2019, were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial. December 31, 2020 December 31, 2019 (000’s omitted) # Amount # Amount Business lending 1 $ 4 6 $ 685 Consumer mortgage 17 1,339 22 1,519 Consumer indirect 31 333 33 364 Consumer direct 3 10 6 49 Home equity 3 70 6 181 Total 55 $ 1,756 73 $ 2,798 |
Schedule of allowance for loan losses by class | The following presents by segment the activity in the allowance for credit losses during 2020 and 2019: Year Ended December 31, 2020 Beginning Beginning balance, balance, prior to the after adoption of Impact of adoption of Steuben Ending (000’s omitted) ASC 326 ASC 326 ASC 326 Charge-offs Recoveries acquisition Provision balance Business lending $ 19,426 $ 288 $ 19,714 $ (1,497) $ 356 $ 2,343 $ 7,274 $ 28,190 Consumer mortgage 10,269 (1,051) 9,218 (862) 130 146 2,040 10,672 Consumer indirect 13,712 (997) 12,715 (6,382) 3,992 183 3,188 13,696 Consumer direct 3,255 (643) 2,612 (1,633) 743 87 1,398 3,207 Home equity 2,129 808 2,937 (199) 28 235 (779) 2,222 Unallocated 957 43 1,000 0 0 0 0 1,000 Purchased credit deteriorated 0 3,072 3,072 (91) 440 668 (2,207) 1,882 Acquired impaired 163 (163) 0 0 0 0 0 0 Allowance for credit losses 49,911 1,357 51,268 (10,664) 5,689 3,662 10,914 60,869 Liabilities for off-balance-sheet credit exposures 0 1,185 1,185 0 0 67 237 1,489 Total allowance for credit losses and liabilities for off-balance-sheet credit exposures $ 49,911 $ 2,542 $ 52,453 $ (10,664) $ 5,689 $ 3,729 $ 11,151 $ 62,358 Year Ended December 31, 2019 Business Consumer Consumer Consumer Home Acquired (000’s omitted) Lending Mortgage Indirect Direct Equity Unallocated Impaired Total Balance at December 31, 2018 18,522 10,124 14,366 3,095 2,144 1,000 33 49,284 Charge-offs (2,334) (1,372) (7,631) (1,945) (445) 0 0 (13,727) Recoveries 826 60 4,180 710 148 0 0 5,924 Provision 2,412 1,457 2,797 1,395 282 (43) 130 8,430 Balance at December 31, 2019 $ 19,426 $ 10,269 $ 13,712 $ 3,255 $ 2,129 $ 957 $ 163 $ 49,911 |
Schedule of financing receivables purchased and Sold | The following table presents the carrying amounts of loans purchased and sold during the year ended December 31, 2020 by portfolio segment: (000’s omitted) Business lending Consumer mortgage Consumer indirect Consumer direct Home equity Total Purchases $ 253,509 $ 26,721 $ 13,926 $ 5,994 $ 39,554 $ 339,704 Sales 0 79,709 0 0 0 79,709 |
Business Lending [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of loans by credit quality indicator | The following tables show the amount of business lending loans by credit quality category at December 31, 2020 and December 31, 2019: Revolving Loans (000’s omitted) Term Loans Amortized Cost Basis by Origination Year Amortized December 31, 2020 2020 2019 2018 2017 2016 Prior Cost Basis Total Business lending: Risk rating Pass $ 860,178 $ 351,350 $ 312,087 $ 217,138 $ 231,453 $ 543,999 $ 483,018 $ 2,999,223 Special mention 14,687 36,041 28,410 21,875 29,386 51,657 52,732 234,788 Classified 6,336 4,560 30,422 24,807 14,891 65,157 56,000 202,173 Doubtful 0 18 2,888 0 0 108 879 3,893 Total business lending $ 881,201 $ 391,969 $ 373,807 $ 263,820 $ 275,730 $ 660,921 $ 592,629 $ 3,440,077 December 31, 2019 (000’s omitted) Legacy Acquired Total Pass $ 1,655,280 $ 832,693 $ 2,487,973 Special mention 98,953 45,324 144,277 Classified 102,352 29,477 131,829 Doubtful 0 0 0 Acquired impaired 0 11,797 11,797 Total $ 1,856,585 $ 919,291 $ 2,775,876 |
All Other Loans [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of loans by credit quality indicator | All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis. These are typically loans to individuals in the consumer categories and are delineated as either performing or nonperforming. Performing loans include loans classified as current as well as those classified as 30 - 89 days past due. Nonperforming loans include 90+ days past due and still accruing and nonaccrual loans. The following table details the balances in all other loan categories at December 31, 2020: Revolving Loans (000’s omitted) Term Loans Amortized Cost Basis by Origination Year Amortized December 31, 2020 2020 2019 2018 2017 2016 Prior Cost Basis Total Consumer mortgage: FICO AB Performing $ 260,588 $ 227,027 $ 166,638 $ 163,653 $ 160,911 $ 614,976 $ 321 $ 1,594,114 Nonperforming 0 0 275 398 345 2,709 0 3,727 Total FICO AB 260,588 227,027 166,913 164,051 161,256 617,685 321 1,597,841 FICO CDE Performing 115,049 102,788 80,973 75,289 83,214 314,668 17,382 789,363 Nonperforming 0 1,010 582 877 1,786 10,040 0 14,295 Total FICO CDE 115,049 103,798 81,555 76,166 85,000 324,708 17,382 803,658 Total consumer mortgage $ 375,637 $ 330,825 $ 248,468 $ 240,217 $ 246,256 $ 942,393 $ 17,703 $ 2,401,499 Consumer indirect: Performing $ 303,471 $ 305,901 $ 202,373 $ 86,497 $ 61,449 $ 61,975 $ 0 $ 1,021,666 Nonperforming 51 52 82 17 16 1 0 219 Total consumer indirect $ 303,522 $ 305,953 $ 202,455 $ 86,514 $ 61,465 $ 61,976 $ 0 $ 1,021,885 Consumer direct: Performing $ 49,181 $ 46,992 $ 27,872 $ 12,326 $ 5,232 $ 4,146 $ 6,878 $ 152,627 Nonperforming 1 19 2 5 0 3 0 30 Total consumer direct $ 49,182 $ 47,011 $ 27,874 $ 12,331 $ 5,232 $ 4,149 $ 6,878 $ 152,657 Home equity: Performing $ 48,145 $ 48,780 $ 28,074 $ 23,524 $ 17,828 $ 35,900 $ 194,773 $ 397,024 Nonperforming 0 24 73 104 183 490 1,936 2,810 Total home equity $ 48,145 $ 48,804 $ 28,147 $ 23,628 $ 18,011 $ 36,390 $ 196,709 $ 399,834 The following table details the balances in all other loan categories at December 31, 2019: Legacy Loans Consumer Consumer Consumer Home (000’s omitted) Mortgage Indirect Direct Equity Total Performing $ 1,984,533 $ 1,107,183 $ 175,900 $ 312,235 $ 3,579,851 Nonperforming 12,183 125 76 1,772 14,156 Total $ 1,996,716 $ 1,107,308 $ 175,976 $ 314,007 $ 3,594,007 Acquired Loans Consumer Consumer Consumer Home (000’s omitted) Mortgage Indirect Direct Equity Total Performing $ 431,523 $ 5,723 $ 8,350 $ 71,668 $ 517,264 Nonperforming 2,663 31 52 650 3,396 Total $ 434,186 $ 5,754 $ 8,402 $ 72,318 $ 520,660 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |
Schedule of premises and equipment | Premises and equipment consist of the following at December 31: (000’s omitted) 2020 2019 Land and land improvements $ 29,070 $ 26,301 Bank premises 149,217 141,905 Equipment and construction in progress 99,239 89,819 Operating lease right-of-use assets 34,908 39,895 Premises and equipment, gross 312,434 297,920 Accumulated depreciation (146,779) (133,282) Premises and equipment, net $ 165,655 $ 164,638 |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | |
Schedule of gross carrying amount and accumulated amortization for each type of identifiable intangible asset | The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows: December 31, 2020 December 31, 2019 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying (000’s omitted) Amount Amortization Amount Amount Amortization Amount Amortizing intangible assets: Core deposit intangibles $ 69,403 $ (55,572) $ 13,831 $ 66,475 $ (50,057) $ 16,418 Other intangibles 90,462 (51,353) 39,109 89,266 (42,571) 46,695 Total amortizing intangibles $ 159,865 $ (106,925) $ 52,940 $ 155,741 $ (92,628) $ 63,113 |
Schedule of estimated aggregate amortization expense for each of five succeeding fiscal years | The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows (000’s omitted): 2021 $ 12,640 2022 10,844 2023 9,082 2024 7,551 2025 6,374 Thereafter 6,449 Total $ 52,940 |
Schedule of components of goodwill | Shown below are the components of the Company’s goodwill at December 31, 2020, 2019, and 2018: December 31, December 31, December 31, (000’s omitted) 2018 Activity 2019 Activity 2020 Goodwill, net $ 733,503 $ 40,307 $ 773,810 $ 19,898 $ 793,708 |
Schedule of changes in carrying value of MSRs and associated valuation allowance | The following table summarizes the changes in carrying value of MSRs and the associated valuation allowance: (000’s omitted) 2020 2019 Carrying value before valuation allowance at beginning of period $ 972 $ 1,137 Additions 715 17 Acquisitions 122 196 Amortization (379) (378) Carrying value before valuation allowance at end of period 1,430 972 Valuation allowance balance at beginning of period (298) 0 Impairment charges (150) (326) Impairment recoveries 229 28 Valuation allowance balance at end of period (219) (298) Net carrying value at end of period $ 1,211 $ 674 Fair value of MSRs at end of period $ 1,384 $ 1,362 Principal balance of loans sold during the year $ 79,709 $ 2,204 Principal balance of loans serviced for others $ 351,759 $ 294,093 Custodial escrow balances maintained in connection with loans serviced for others $ 5,583 $ 4,596 |
Schedule of key economic assumptions used to estimate value of MSRs | The following table summarizes the key economic assumptions used to estimate the value of the MSRs at December 31: 2020 2019 Weighted-average contractual life (in years) 21.5 20.9 Weighted-average constant prepayment rate (CPR) 30.4 % 18.7 % Weighted-average discount rate 2.1 % 3.0 % |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DEPOSITS | |
Schedule of deposits | Deposits recorded in the consolidated statements of condition consist of the following at December 31: (000’s omitted) 2020 2019 Noninterest checking $ 3,361,768 $ 2,465,902 Interest checking 2,876,420 2,138,348 Savings 1,949,517 1,538,203 Money market 2,103,498 1,916,385 Time 933,771 936,129 Total deposits $ 11,224,974 $ 8,994,967 |
Schedule of interest on deposits | Interest on deposits recorded in the consolidated statements of income consists of the following at December 31: (000’s omitted) 2020 2019 2018 Interest on interest checking $ 2,182 $ 3,678 $ 1,796 Interest on savings 665 942 858 Interest on money market 2,685 5,836 3,638 Interest on time 11,229 10,004 4,366 Total interest on deposits $ 16,761 $ 20,460 $ 10,658 |
Schedule of maturities of time deposits | The approximate maturities of time deposits at December 31, 2020 are as follows: Accounts $250,000 (000’s omitted) All Accounts or Greater 2021 $ 570,039 $ 140,887 2022 126,106 7,182 2023 106,713 6,632 2024 109,573 22,310 2025 21,244 2,595 Thereafter 96 0 Total $ 933,771 $ 179,606 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
BORROWINGS | |
Schedule of outstanding borrowings | Outstanding borrowings at December 31 are as follows: (000’s omitted) 2020 2019 Overnight FHLB borrowings $ 0 $ 8,300 Subordinated notes payable, net of premium of $303 and $795, respectively 3,303 13,795 Subordinated debt held by unconsolidated subsidiary trusts 77,320 77,320 Securities sold under agreement to repurchase, short term 284,008 241,708 Other FHLB borrowings 6,658 3,750 Total borrowings $ 371,289 $ 344,873 |
Schedule of borrowings by contractual maturity dates | Borrowings at December 31, 2020 have contractual maturity dates as follows: Weighted-average Carrying Rate at (000’s omitted, except rate) Value December 31, 2020 January 2, 2021 $ 284,008 0.38 % February 8, 2021 675 1.45 % May 17, 2021 2,000 1.68 % June 14, 2021 1,000 1.59 % November 22, 2021 1,000 3.25 % February 8, 2023 190 1.79 % July 3, 2023 523 2.25 % October 23, 2023 425 1.50 % October 1, 2025 289 1.50 % February 28, 2028 3,303 6.00 % March 1, 2029 556 2.50 % December 15, 2036 77,320 1.87 % Total $ 371,289 0.76 % |
Schedule of terms of preferred Securities | As of December 31, 2020, the terms of the preferred securities of CCT IV are as follows: Issuance Par Maturity Trust Date Amount Interest Rate Date Call Price CCT IV 12/8/2006 $75.0 million 3 month LIBOR plus 1.65% (1.87)% 12/15/2036 Par |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAXES | |
Schedule of provision for income taxes | The provision for income taxes for the years ended December 31 is as follows: (000’s omitted) 2020 2019 2018 Current: Federal $ 35,728 $ 34,804 $ 32,504 State and other 8,008 7,773 9,180 Deferred: Federal (2,005) (699) 2,122 State and other (331) (1,603) 541 Provision for income taxes $ 41,400 $ 40,275 $ 44,347 |
Schedule of net deferred tax liability | Components of the net deferred tax liability, included in other liabilities, as of December 31 are as follows: (000’s omitted) 2020 2019 Allowance for credit losses $ 15,004 $ 12,059 Employee benefits 7,552 5,393 Operating lease liabilities 8,601 9,801 Other, net 900 837 Deferred tax asset 32,057 28,090 Investment securities 43,325 21,547 Goodwill and intangibles 40,802 39,189 Operating lease right-of-use assets 8,384 9,566 Loan origination costs 7,904 7,639 Depreciation 3,089 2,736 Mortgage servicing rights 291 162 Pension 16,987 13,769 Deferred tax liability 120,782 94,608 Net deferred tax liability $ (88,725) $ (66,518) |
Schedule of reconciliation of the differences between the federal statutory income tax rate | A reconciliation of the differences between the federal statutory income tax rate and the effective tax rate for the years ended December 31 is shown in the following table: 2020 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % Increase (reduction) in taxes resulting from: Tax-exempt interest (1.5) (1.5) (1.6) State income taxes, net of federal benefit 3.0 2.5 3.4 Stock-based compensation (0.8) (1.6) (0.9) Federal tax credits (1.3) (1.3) (1.4) Other, net (0.3) 0.1 0.3 Effective income tax rate 20.1 % 19.2 % 20.8 % |
Schedule of reconciliation of the unrecognized tax benefits | A reconciliation of the unrecognized tax benefits for the years ended December 31 is shown in the following table: (000’s omitted) 2020 2019 2018 Unrecognized tax benefits at beginning of year $ 0 $ 0 $ 24 Changes related to: Lapse of statutes of limitations 0 0 (24) Unrecognized tax benefits at end of year $ 0 $ 0 $ 0 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
BENEFIT PLANS | |
Schedule of funded status of the Company's plans reconciled with amounts reported | Pension Benefits Post-retirement Benefits (000’s omitted) 2020 2019 2020 2019 Change in benefit obligation: Benefit obligation at the beginning of year $ 162,084 $ 144,211 $ 1,677 $ 1,657 Service cost 5,750 5,081 0 0 Interest cost 5,657 6,264 57 70 Plan amendment / acquisition 13,598 0 0 0 Participant contributions 0 0 0 35 Deferred actuarial (gain)/loss 13,954 16,292 114 87 Benefits paid (10,682) (9,764) (130) (172) Benefit obligation at end of year 190,361 162,084 1,718 1,677 Change in plan assets: Fair value of plan assets at beginning of year 227,323 203,672 0 0 Actual return of plan assets 33,543 25,522 0 0 Participant contributions 0 0 0 35 Employer contributions 7,993 7,893 130 137 Plan acquisition 14,423 0 0 0 Benefits paid (10,682) (9,764) (130) (172) Fair value of plan assets at end of year 272,600 227,323 0 0 Over/(Under) funded status at year end $ 82,239 $ 65,239 $ (1,718) $ (1,677) Amounts recognized in the consolidated statement of condition were: Other assets $ 101,849 $ 81,930 $ 0 $ 0 Other liabilities (19,610) (16,691) (1,718) (1,677) Amounts recognized in accumulated other comprehensive loss/(income) (“AOCI”) were: Net loss $ 34,290 $ 42,743 $ 715 $ 641 Net prior service cost (credit) 4,348 4,056 (1,086) (1,265) Pre-tax AOCI 38,638 46,799 (371) (624) Taxes (9,488) (11,448) 94 155 AOCI at year end $ 29,150 $ 35,351 $ (277) $ (469) |
Schedule of Amounts recognized in accumulated other comprehensive income, net of tax | Amounts recognized in accumulated other comprehensive income, net of tax, for the year ended December 31, are as follows: Pension Benefits Post-retirement Benefits (000’s omitted) 2020 2019 2020 2019 Prior service cost/(credit) $ 222 $ (49) $ 136 $ 136 Net (gain) loss (6,423) 1,920 56 38 Total $ (6,201) $ 1,871 $ 192 $ 174 |
Schedule of estimated costs, net of tax, that will be amortized from accumulated other comprehensive (income) loss into net periodic (income) cost over the next fiscal year | The estimated costs, net of tax, that will be amortized from accumulated other comprehensive (income) loss into net periodic (income) cost over the next fiscal year are as follows: Pension Post-retirement (000’s omitted) Benefits Benefits Prior service credit $ 379 $ (179) Net loss 3,560 48 Total $ 3,939 $ (131) |
Schedule of weighted-average assumptions used to determine the benefit obligations | The weighted-average assumptions used to determine the benefit obligations as of December 31 are as follows: Pension Benefits Post-retirement Benefits 2020 2019 2020 2019 Discount rate 2.80 % 3.50 % 2.80 % 3.60 % Expected return on plan assets 7.00 % 7.00 % N/A N/A Rate of compensation increase 3.50 % 3.50 % N/A N/A |
Schedule of net periodic benefit cost | The net periodic benefit cost as of December 31 is as follows: Pension Benefits Post-retirement Benefits (000’s omitted) 2020 2019 2018 2020 2019 2018 Service cost $ 5,750 $ 5,081 $ 4,561 $ 0 $ 0 $ 0 Interest cost 5,657 6,264 5,676 57 70 69 Expected return on plan assets (16,306) (14,311) (14,820) 0 0 0 Plan amendment (637) 0 13 0 0 0 Amortization of unrecognized net loss/(gain) 3,239 2,568 1,193 40 38 21 Amortization of prior service cost 241 64 (293) (179) (179) (179) Net periodic (benefit) $ (2,056) $ (334) $ (3,670) $ (82) $ (71) $ (89) |
Schedule of weighted-average assumptions used to determine the net periodic pension cost | The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31 are as follows: Pension Benefits Post-retirement Benefits 2020 2019 2018 2020 2019 2018 Discount rate 3.50 % 4.50 % 4.00 % 3.60 % 4.45 % 4.00 % Expected return on plan assets 7.00 % 7.00 % 7.00 % N/A N/A N/A Rate of compensation increase 3.50 % 3.50 % 3.50 % N/A N/A N/A |
Schedule of amount of benefit payments | The amount of benefit payments that are expected to be paid over the next ten years are as follows: Pension Post-retirement (000’s omitted) Benefits Benefits 2021 $ 10,588 $ 174 2022 11,061 130 2023 12,004 128 2024 12,404 125 2025 12,238 122 2026-2030 64,468 560 |
Schedule of fair value of defined benefit plan assets by asset category | The fair values of the Company’s defined benefit pension plan assets at December 31, 2020 by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset category (000’s omitted) Level 1 Level 2 Level 3 Total Cash equivalents $ 68,137 $ 0 $ 0 $ 68,137 Equity securities: U.S. large-cap 69,195 0 0 69,195 U.S mid/small cap 17,338 0 0 17,338 CBU stock 7,701 0 0 7,701 International 43,457 6,088 0 49,545 137,691 6,088 0 143,779 Fixed income securities: Government securities 6,154 6,241 0 12,395 Investment grade bonds 23,085 141 0 23,226 High yield (a) 5,803 0 0 5,803 35,042 6,382 0 41,424 Other investments (b) 17,613 0 0 17,613 Total (c)(d) $ 258,483 $ 12,470 $ 0 $ 270,953 The fair values of the Company’s defined benefit pension plan assets at December 31, 2019 by asset category are as follows: Quoted Prices in Active Significant Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Asset category (000’s omitted) Level 1 Level 2 Level 3 Total Cash equivalents $ 3,983 $ 0 $ 0 $ 3,983 Equity securities: U.S. large-cap 50,301 0 0 50,301 U.S mid/small cap 10,408 0 0 10,408 CBU stock 6,522 0 0 6,522 International 30,420 5,375 0 35,795 97,651 5,375 0 103,026 Fixed income securities: Government securities 73,698 8,341 0 82,039 Investment grade bonds 12,938 0 0 12,938 High yield (a) 5,279 0 0 5,279 91,915 8,341 0 100,256 Other investments (b) 19,488 82 0 19,570 Total (c) $ 213,037 $ 13,798 $ 0 $ 226,835 (a) This category is exchange-traded funds representing a diversified index of high yield corporate bonds. (b) This category is comprised of exchange-traded funds and mutual funds holding non-traditional investment classes including private equity funds and alternative exchange funds. (c) Excludes dividends and interest receivable totaling $0.2 million and $0.5 million at December 31, 2020 and 2019, respectively. (d) Excludes certain investments that were measured at net asset value per share (or its equivalents) totaling $1.4 million at December 31, 2020. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
STOCK-BASED COMPENSATION PLANS | |
Schedule of Activity in this long-term incentive program | Activity in this long-term incentive program is as follows: Stock Options Weighted- average Exercise Outstanding Price of Shares Outstanding at December 31, 2018 1,644,361 $ 38.36 Granted 199,110 59.41 Exercised (331,315) 30.42 Forfeited (9,162) 51.29 Outstanding at December 31, 2019 1,502,994 42.82 Granted 254,496 51.68 Exercised (197,564) 32.65 Forfeited (17,667) 50.97 Outstanding at December 31, 2020 1,542,259 45.49 Exercisable at December 31, 2020 978,833 $ 40.77 |
Schedule of information about stock options outstanding under the Company's stock option plan | The following table summarizes the information about stock options outstanding under the Company’s stock option plan at December 31, 2020: Options outstanding Options exercisable Weighted- Weighted- Weighted- average average average Exercise Remaining Exercise Range of Exercise Price Shares Price Life (years) Shares Price $0.00 – $28.00 50,619 $ 23.95 4.75 50,619 $ 23.95 $28.001 – $29.00 52,014 28.78 1.22 52,014 28.78 $29.001 – $30.00 104,045 29.79 2.21 104,045 29.79 $30.001 – $40.00 536,831 37.12 4.37 493,761 37.04 $40.001 – $60.00 798,750 55.61 7.86 278,394 56.78 TOTAL 1,542,259 $ 45.49 5.94 978,833 $ 40.77 |
Schedule of valuation assumptions used to estimate value of stock options | 2020 2019 2018 Weighted-average Fair Value of Options Granted $ 10.86 $ 14.16 $ 13.44 Assumptions: Weighted-average expected life (in years) 6.50 6.50 6.50 Future dividend yield 2.57 % 2.73 % 2.91 % Share price volatility 29.29 % 29.31 % 29.44 % Weighted-average risk-free interest rate 0.67 % 2.44 % 2.82 % |
Schedule of activity unvested restricted stock awards | A summary of the status of the Company’s unvested restricted stock awards as of December 31, 2020, and changes during the twelve months ended December 31, 2020 and 2019, is presented below: Restricted Weighted-average Shares grant date fair value Unvested at December 31, 2018 221,063 $ 37.72 Awards 108,556 42.53 Forfeitures (2,365) 52.47 Vestings (130,466) 29.71 Unvested at December 31, 2019 196,788 45.58 Awards 52,132 51.64 Forfeitures (12,884) 37.14 Vestings (59,628) 47.80 Unvested at December 31, 2020 176,408 $ 47.24 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE | |
Schedule of reconciliation of basic to diluted earnings per share | The following is a reconciliation of basic to diluted earnings per share for the years ended December 31, 2020, 2019 and 2018. (000’s omitted, except per share data) 2020 2019 2018 Net income $ 164,676 $ 169,063 $ 168,641 Income attributable to unvested stock-based compensation awards (514) (400) (744) Income available to common shareholders $ 164,162 $ 168,663 $ 167,897 Weighted-average common shares outstanding - basic 52,969 51,732 51,165 Basic earnings per share $ 3.10 $ 3.26 $ 3.28 Net income $ 164,676 $ 169,063 $ 168,641 Income attributable to unvested stock-based compensation awards (514) (400) (744) Income available to common shareholders $ 164,162 $ 168,663 $ 167,897 Weighted-average common shares outstanding 52,969 51,732 51,165 Assumed exercise of stock options 352 516 583 Weighted-average common shares outstanding – diluted 53,321 52,248 51,748 Diluted earnings per share $ 3.08 $ 3.23 $ 3.24 Cash dividends declared per share $ 1.66 $ 1.58 $ 1.44 |
COMMITMENTS, CONTINGENT LIABI_2
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | |
Schedule of The contract amounts of commitments and contingencies | The contract amounts of commitments and contingencies are as follows at December 31: (000’s omitted) 2020 2019 Commitments to extend credit $ 1,313,568 $ 1,143,780 Standby letters of credit 39,213 37,872 Total $ 1,352,781 $ 1,181,652 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are as follows: (000’s omitted) 2020 2019 Operating lease cost $ 9,000 $ 8,724 Variable lease cost 53 18 Short-term lease cost (1) 369 240 Total lease cost $ 9,422 $ 8,982 (1) Short-term lease cost includes the cost of leases with terms of twelve months or less, excluding leases with terms of one month or less. |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: (000’s omitted) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 8,478 $ 7,938 Right-of-use assets obtained in exchange for lease obligations: Operating leases 3,519 14,145 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows: (000’s omitted, except lease term and discount rate) 2020 2019 Operating leases Operating lease right-of-use assets $ 34,908 $ 39,895 Operating lease liabilities 35,857 40,913 Weighted average remaining lease term Operating leases 6.1 years 6.6 years Weighted average discount rate Operating leases 2.82 % 2.95 % |
Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 are as follows: (000’s omitted) Operating Leases 2021 $ 8,697 2022 7,505 2023 6,336 2024 4,973 2025 3,688 Thereafter 8,222 Total lease payments 39,421 Less imputed interest (3,564) Total $ 35,857 Maturities of lease liabilities as of December 31, 2019 are as follows: (000’s omitted) Operating Leases 2020 $ 9,396 2021 7,952 2022 6,664 2023 5,695 2024 4,565 Thereafter 11,150 Total lease payments 45,422 Less imputed interest (4,509) Total $ 40,913 |
706 North Clinton [Member] | |
Operating Leases [Abstract] | |
Maturities of Lease Liabilities | The maturities of the Company’s related party lease liabilities as of December 31, 2020 are as follows: (000’s omitted) 706 North Clinton, LLC 2021 $ 591 2022 591 2023 591 2024 591 2025 605 Thereafter 2,341 Total lease payments 5,310 Less imputed interest (791) Total $ 4,519 The maturities of the Company’s related party lease liabilities as of December 31, 2019 are as follows: (000’s omitted) 706 North Clinton, LLC 2020 $ 591 2021 591 2022 591 2023 591 2024 591 Thereafter 2,946 Total lease payments 5,901 Less imputed interest (964) Total $ 4,937 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REGULATORY MATTERS | |
Capital Ratios and Amounts | For capital adequacy To be well-capitalized For capital adequacy purposes plus Capital under prompt Actual purposes Conservation Buffer corrective action (000’s omitted) Amount Ratio Amount Ratio Amount Ratio Amount Ratio Community Bank System, Inc.: 2020 Tier 1 Leverage ratio $ 1,314,864 10.16 % $ 517,736 4.00 % $ 647,169 5.00 % Tier 1 risk-based capital 1,314,864 18.99 % 415,472 6.00 % $ 588,585 8.50 % 553,962 8.00 % Total risk-based capital 1,375,704 19.87 % 553,962 8.00 % 727,075 10.50 % 692,453 10.00 % Common equity tier 1 capital 1,239,754 17.90 % 311,604 4.50 % 484,717 7.00 % 450,094 6.50 % 2019 Tier 1 Leverage ratio $ 1,148,336 10.80 % $ 425,431 4.00 % $ 531,788 5.00 % Tier 1 risk-based capital 1,148,336 17.23 % 399,834 6.00 % $ 566,432 8.50 % 533,112 8.00 % Total risk-based capital 1,198,724 17.99 % 533,112 8.00 % 699,710 10.50 % 666,390 10.00 % Common equity tier 1 capital 1,073,281 16.11 % 299,876 4.50 % 466,473 7.00 % 433,154 6.50 % Community Bank, N.A.: 2020 Tier 1 Leverage ratio $ 1,028,285 7.98 % $ 515,552 4.00 % $ 644,440 5.00 % Tier 1 risk-based capital 1,028,285 14.98 % 411,880 6.00 % $ 583,497 8.50 % 549,174 8.00 % Total risk-based capital 1,089,125 15.87 % 549,174 8.00 % 720,791 10.50 % 686,467 10.00 % Common equity tier 1 capital 1,028,175 14.98 % 308,910 4.50 % 480,527 7.00 % 446,204 6.50 % 2019 Tier 1 Leverage ratio $ 910,364 8.61 % $ 422,882 4.00 % $ 528,603 5.00 % Tier 1 risk-based capital 910,364 13.79 % 396,064 6.00 % $ 561,091 8.50 % 528,086 8.00 % Total risk-based capital 960,752 14.55 % 528,086 8.00 % 693,113 10.50 % 660,107 10.00 % Common equity tier 1 capital 910,309 13.79 % 297,048 4.50 % 462,075 7.00 % 429,070 6.50 % |
PARENT COMPANY STATEMENTS (Tabl
PARENT COMPANY STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY STATEMENTS | |
Condensed Statements of Condition of Parent Company | The condensed statements of condition of the parent company, Community Bank System, Inc., at December 31 are as follows: (000's omitted) 2020 2019 Assets: Cash and cash equivalents $ 196,021 $ 180,663 Investment securities 6,043 2,853 Investment in and advances to: Bank subsidiary 1,802,150 1,594,790 Non-bank subsidiaries 196,090 180,487 Other assets 15,290 12,406 Total assets $ 2,215,594 $ 1,971,199 Liabilities and shareholders' equity: Accrued interest and other liabilities $ 30,864 $ 24,850 Borrowings 80,623 91,115 Shareholders' equity 2,104,107 1,855,234 Total liabilities and shareholders' equity $ 2,215,594 $ 1,971,199 |
Condensed Statements of Income of Parent Company | The condensed statements of income of the parent company for the years ended December 31 is as follows: (000's omitted) 2020 2019 2018 Revenues: Dividends from subsidiaries: Bank subsidiary $ 105,000 $ 115,000 $ 98,000 Non-bank subsidiaries 13,500 27,600 9,250 Interest and dividends on investments 168 134 161 Total revenues 118,668 142,734 107,411 Expenses: Interest on borrowings 2,546 4,244 4,677 Acquisition expenses 450 1,248 0 (Gain)/loss on debt extinguishment (421) 0 318 Other expenses 4,945 477 131 Total expenses 7,520 5,969 5,126 Income before tax benefit and equity in undistributed net income of subsidiaries 111,148 136,765 102,285 Income tax benefit 3,739 4,545 1,330 Income before equity in undistributed net income of subsidiaries 114,887 141,310 103,615 Equity in undistributed net income of subsidiaries 49,789 27,753 65,026 Net income $ 164,676 $ 169,063 $ 168,641 Other comprehensive income/(loss), net of tax: Changes in other comprehensive income/(loss) related to pension and other post retirement obligations 6,009 (2,045) (11,204) Changes in other comprehensive income/(loss) related to unrealized losses on available-for-sale securities 66,294 37,124 (30,402) Other comprehensive income/(loss) 72,303 35,079 (41,606) Comprehensive income $ 236,979 $ 204,142 $ 127,035 |
Statements of Cash Flows of Parent Company | The statements of cash flows of the parent company for the years ended December 31 is as follows: (000's omitted) 2020 2019 2018 Operating activities: Net income $ 164,676 $ 169,063 $ 168,641 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed net income of subsidiaries (49,789) (27,753) (65,026) Net change in other assets and other liabilities 1,740 86 (1,084) Net cash provided by operating activities 116,627 141,396 102,531 Investing activities: Proceeds from redemption of investment securities 0 0 776 Purchases of investment securities (3,000) 0 0 Cash paid for acquisitions, net of cash acquired of (20,892) (92,056) 0 Return of capital from/(capital contributions to) 2 100,680 0 Net cash (used in)/provided by investing activities (23,890) 8,624 776 Financing activities: Repayment of advances from subsidiaries (482) (1,652) 0 Repayment of borrowings (12,062) (22,681) (25,207) Issuance of common stock 22,211 12,200 12,507 Purchase of treasury stock (271) (286) (298) Sale of treasury stock 85 6,884 12,561 Increase in deferred compensation arrangements 271 286 298 Cash dividends paid (87,131) (80,241) (71,495) Net cash used in financing activities (77,379) (85,490) (71,634) Change in cash and cash equivalents 15,358 64,530 31,673 Cash and cash equivalents at beginning of year 180,663 116,133 84,460 Cash and cash equivalents at end of year $ 196,021 $ 180,663 $ 116,133 Supplemental disclosures of cash flow information: Cash paid for interest $ 2,555 $ 4,306 $ 4,857 Supplemental disclosures of noncash financing activities Dividends declared and unpaid $ 22,695 $ 21,342 $ 19,808 Advances from subsidiaries 932 1,691 0 Common stock issued for acquisition 76,942 0 0 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE | |
Fair Value Measured on a Recurring Basis | December 31, 2020 Total Fair (000’s omitted) Level 1 Level 2 Level 3 Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 2,359,912 $ 141,470 $ 0 $ 2,501,382 Obligations of state and political subdivisions 0 475,660 0 475,660 Government agency mortgage-backed securities 0 522,638 0 522,638 Corporate debt securities 0 4,635 0 4,635 Government agency collateralized mortgage obligations 0 43,577 0 43,577 Total available-for-sale investment securities 2,359,912 1,187,980 0 3,547,892 Equity securities 445 0 0 445 Mortgage loans held for sale 0 1,622 0 1,622 Commitments to originate real estate loans for sale 0 0 14 14 Forward sales commitments 0 2 0 2 Interest rate swap agreements asset 0 1,572 0 1,572 Interest rate swap agreements liability 0 (1,074) 0 (1,074) Total $ 2,360,357 $ 1,190,102 $ 14 $ 3,550,473 December 31, 2019 Total Fair (000’s omitted) Level 1 Level 2 Level 3 Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,878,705 $ 165,054 $ 0 $ 2,043,759 Obligations of state and political subdivisions 0 512,208 0 512,208 Government agency mortgage-backed securities 0 432,862 0 432,862 Corporate debt securities 0 2,528 0 2,528 Government agency collateralized mortgage obligations 0 53,071 0 53,071 Total available-for-sale investment securities 1,878,705 1,165,723 0 3,044,428 Equity securities 451 0 0 451 Interest rate swap agreements asset 0 851 0 851 Interest rate swap agreements liability 0 (586) 0 (586) Total $ 1,879,156 $ 1,165,988 $ 0 $ 3,045,144 |
Assets and Liabilities Measured on a Non-Recurring Basis | Assets and liabilities measured on a non-recurring basis: December 31, 2020 December 31, 2019 Total Total (000’s omitted) Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Fair Value Impaired loans $ 0 $ 0 $ 25,063 $ 25,063 $ 0 $ 0 $ 848 $ 848 Other real estate owned 0 0 883 883 0 0 1,270 1,270 Mortgage servicing rights 0 0 682 682 0 0 56 56 Total $ 0 $ 0 $ 26,628 $ 26,628 $ 0 $ 0 $ 2,174 $ 2,174 |
Significant Unobservable Inputs, Fair Value Valuation Techniques | The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis as of December 31, 2020 are as follows: Significant Significant Unobservable Valuation Unobservable Input Range (000’s omitted) Fair Value Technique Inputs (Weighted Average) Impaired loans $ 25,063 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 78.4% (52.7) % Other real estate owned 883 Fair value of collateral Estimated cost of disposal/market adjustment 11.3% - 52.9% (34.0) % Commitments to originate real estate loans for sale 14 Discounted cash flow Embedded servicing value 1.0 % Mortgage servicing rights 682 Discounted cash flow Weighted average constant prepayment rate 9.8% - 18.8% (17.6) % Weighted average discount rate 1.7% - 2.2% (2.1) % Adequate compensation $ 7/loan The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis as of December 31, 2019 are as follows: Significant Significant Unobservable Valuation Unobservable Input Range (000’s omitted) Fair Value Technique Inputs (Weighted Average) Impaired loans $ 848 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 35.0% (27.9) % Other real estate owned 1,270 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 85.7% (37.1) % Mortgage servicing rights 56 Discounted cash flow Weighted average constant prepayment rate 52.8 % Weighted average discount rate 3.00 % Adequate compensation $ 7/loan |
Carrying Amounts and Estimated Fair Values of Other Financial Instruments | The carrying amounts and estimated fair values of the Company’s other financial instruments that are not accounted for at fair value at December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Carrying Fair Carrying Fair (000’s omitted) Value Value Value Value Financial assets: Net loans $ 7,355,083 $ 7,655,044 $ 6,840,632 $ 7,028,663 Financial liabilities: Deposits 11,224,974 11,239,628 8,994,967 8,997,551 Overnight Federal Home Loan Bank borrowings 0 0 8,300 8,300 Securities sold under agreement to repurchase, short-term 284,008 284,008 241,708 241,708 Other Federal Home Loan Bank borrowings 6,658 6,758 3,750 3,755 Subordinated notes payable 3,303 3,303 13,795 13,795 Subordinated debt held by unconsolidated subsidiary trusts 77,320 77,320 77,320 77,320 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE INSTRUMENTS | |
Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges | As of December 31, 2020 and December 31, 2019, the following amounts were recorded in the consolidated statement of condition related to cumulative basis adjustments for fair value hedges: (000’s omitted) Cumulative Amount of Fair Value Hedging Line Item in the Adjustment Included in the Consolidated Statement Carrying Amount Carrying Amount of of Condition in Which the of the Hedged Assets the Hedged Assets Hedged Item Is Included December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Loans $ 5,675 $ 6,390 $ (498) $ (265) |
Fair Value of Derivative Instruments | Fair values of derivative instruments as of December 31, 2020 are as follows: (000’s omitted) December 31, 2020 Derivative Assets Derivative Liabilities Consolidated Statement Consolidated Statement of Condition Location Fair Value of Condition Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets $ 498 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets 1,074 Accrued interest and other liabilities $ 1,074 Commitments to originate real estate loans for sale Other assets 14 Forward sales commitments Other assets 2 Total derivatives $ 1,588 $ 1,074 Fair values of derivative instruments as of December 31, 2019 are as follows: (000’s omitted) December 31, 2019 Derivative Assets Derivative Liabilities Consolidated Statement of Consolidated Statement of Condition Condition Location Fair Value Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets $ 265 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets 586 Accrued interest and other liabilities $ 586 Total derivatives $ 851 $ 586 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
VARIABLE INTEREST ENTITIES | |
Carrying Amount and Classification of Assets and Liabilities of 706 North Clinton | The carrying amount of the assets and liabilities of 706 North Clinton and the classification of these assets and liabilities in the Company’s consolidated statements of condition at December 31 is as follows: (000’s omitted) 2020 2019 Cash and cash equivalents $ 157 $ 138 Premises and equipment, net 5,782 5,945 Other assets 48 42 Total assets $ 5,987 $ 6,125 Accrued interest and other liabilities / Total liabilities $ 0 $ 1 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT INFORMATION | |
Schedule of Segment Reporting Information by Segment | Information about reportable segments and reconciliation of the information to the consolidated financial statements follows: Employee Consolidated (000’s omitted) Banking Benefit Services All Other Eliminations Total 2020 Net interest income $ 367,237 $ 943 $ 223 $ 0 $ 368,403 Provision for credit losses 14,212 0 0 0 14,212 Noninterest revenue 69,578 103,456 61,599 (6,214) 228,419 Amortization of intangible assets 5,515 5,724 3,058 0 14,297 Acquisition expenses 4,933 0 0 0 4,933 Other operating expenses 255,955 60,709 46,854 (6,214) 357,304 Income before income taxes $ 156,200 $ 37,966 $ 11,910 $ 0 $ 206,076 Assets $ 13,762,325 $ 217,780 $ 82,849 $ (131,860) $ 13,931,094 Goodwill $ 690,121 $ 83,275 $ 20,312 $ 0 $ 793,708 Core deposit intangibles & Other intangibles $ 13,831 $ 32,051 $ 7,058 $ 0 $ 52,940 2019 Net interest income $ 358,334 $ 665 $ 176 $ 0 $ 359,175 Provision for credit losses 8,430 0 0 0 8,430 Noninterest revenue 75,067 99,483 59,075 (3,006) 230,619 Amortization of intangible assets 5,751 6,770 3,435 0 15,956 Acquisition expenses 8,608 0 0 0 8,608 Other operating expenses 245,870 59,428 45,170 (3,006) 347,462 Income before income taxes $ 164,742 $ 33,950 $ 10,646 $ 0 $ 209,338 Assets $ 11,225,509 $ 209,690 $ 76,351 $ (101,255) $ 11,410,295 Goodwill $ 670,223 $ 83,275 $ 20,312 $ 0 $ 773,810 Core deposit intangibles & Other intangibles $ 16,418 $ 37,775 $ 8,920 $ 0 $ 63,113 2018 Net interest income $ 344,551 $ 376 $ 128 $ 0 $ 345,055 Provision for credit losses 10,837 0 0 0 10,837 Noninterest revenue 75,399 94,449 57,204 (2,993) 224,059 Amortization of intangible assets 6,429 8,015 3,711 0 18,155 Acquisition expenses (782) 7 6 0 (769) Other operating expenses 231,362 56,275 43,259 (2,993) 327,903 Income before income taxes $ 172,104 $ 30,528 $ 10,356 $ 0 $ 212,988 Assets $ 10,397,623 $ 207,460 $ 68,288 $ (66,076) $ 10,607,295 Goodwill $ 629,916 $ 83,275 $ 20,312 $ 0 $ 733,503 Core deposit intangibles & Other intangibles $ 18,596 $ 44,545 $ 10,705 $ 0 $ 73,846 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)countrytrustsubsidiarysegmentcomponentitemOffice | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Nature of Operations [Abstract] | |||
Number of significant consolidated subsidiaries owned | subsidiary | 2 | ||
Number of unconsolidated subsidiary business trusts owned | trust | 1 | ||
Number of bank branches | Office | 232 | ||
Risks and Uncertainties [Abstract] | |||
Number of main components of economic risk | component | 3 | ||
Wealth Management Services [Abstract] | |||
Number of types of performance obligations | item | 2 | ||
Contract Balances [Abstract] | |||
Accounts receivable | $ 30.3 | $ 26.8 | |
Unbilled fee revenue | 7.7 | 7.5 | |
Unearned revenue | 1.4 | 1.8 | |
Cash and Cash Equivalents [Abstract] | |||
Cash due from banks | 7.7 | 10.4 | |
Allowance for Loan Losses [Abstract] | |||
Accrued interest and fees receivable | 22.2 | ||
Other Real Estate [Abstract] | |||
Other real estate | 0.9 | 1.3 | |
Investments in Real Estate Limited Partnerships [Abstract] | |||
Unfunded commitments | 0.9 | ||
Impairment losses related to real estate partnerships | 0 | ||
Advertising [Abstract] | |||
Advertising costs | 6.1 | $ 7.1 | $ 5.1 |
Available-for-sale Securities [Member] | |||
Allowance for Loan Losses [Abstract] | |||
Accrued interest and fees receivable | $ 13.3 | ||
Land Improvements [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 20 years | ||
Minimum [Member] | Investments in Real Estate Limited Partnerships [Member] | |||
Investments in Real Estate Limited Partnerships [Abstract] | |||
Ownership interest | 5.00% | ||
Minimum [Member] | Equipment [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 2 years | ||
Minimum [Member] | Software [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 3 years | ||
Minimum [Member] | Hardware [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 3 years | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 10 years | ||
Minimum [Member] | Core Deposit Intangibles [Member] | |||
Intangible Assets [Abstract] | |||
Intangible asset useful life (amortization period) | 7 years | ||
Minimum [Member] | Customer Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Intangible asset useful life (amortization period) | 7 years | ||
Maximum [Member] | |||
Impaired and Other Nonaccrual Loans [Abstract] | |||
Threshold balance of loans individually evaluated for impairment | $ 0.5 | ||
Maximum [Member] | Investments in Real Estate Limited Partnerships [Member] | |||
Investments in Real Estate Limited Partnerships [Abstract] | |||
Ownership interest | 99.99% | ||
Maximum [Member] | Equipment [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 20 years | ||
Maximum [Member] | Software [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 7 years | ||
Maximum [Member] | Hardware [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 7 years | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Estimated useful life | 40 years | ||
Maximum [Member] | Core Deposit Intangibles [Member] | |||
Intangible Assets [Abstract] | |||
Intangible asset useful life (amortization period) | 20 years | ||
Maximum [Member] | Customer Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Intangible asset useful life (amortization period) | 20 years | ||
BPAS [Member] | |||
Nature of Operations [Abstract] | |||
Number of significant consolidated subsidiaries owned | segment | 5 | ||
Hand Benefits & Trust [Member] | |||
Nature of Operations [Abstract] | |||
Number of significant consolidated subsidiaries owned | segment | 1 | ||
NRS [Member] | |||
Nature of Operations [Abstract] | |||
Number of significant consolidated subsidiaries owned | segment | 1 | ||
Upstate New York [Member] | |||
Nature of Operations [Abstract] | |||
Number of counties where the bank has facilities | country | 42 | ||
PENNSYLVANIA | |||
Nature of Operations [Abstract] | |||
Number of counties where the bank has facilities | country | 6 | ||
Vermont [Member] | |||
Nature of Operations [Abstract] | |||
Number of counties where the bank has facilities | country | 12 | ||
Massachusetts [Member] | |||
Nature of Operations [Abstract] | |||
Number of counties where the bank has facilities | country | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted and New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 |
Recently Adopted Accounting Pronouncements [Abstract] | |||
Retained earnings | $ 882,851 | $ 960,183 | |
Allowance for loan losses | 49,911 | 60,869 | $ 49,284 |
Loans | 6,890,543 | 7,415,952 | |
ASU 2016-13 [Member] | |||
Recently Adopted Accounting Pronouncements [Abstract] | |||
Allowance for loan losses | 51,268 | 60,869 | |
ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Recently Adopted Accounting Pronouncements [Abstract] | |||
Retained earnings | 1,100 | ||
Allowance for loan losses | (1,357) | (3,100) | |
Other liabilities | 1,400 | ||
Increase in other operating liabilities | $ 600 | ||
Addition to allowance for credit losses | $ 3,100 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) shares in Thousands, $ in Thousands | Jun. 12, 2020USD ($)Officeshares | Sep. 18, 2019USD ($) | Jul. 12, 2019USD ($)Officecountry | Jan. 02, 2019USD ($) | Apr. 02, 2018USD ($) | Jan. 02, 2018USD ($) | Dec. 31, 2020USD ($)country | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2020USD ($)country | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 21, 2019country |
Acquisitions [Abstract] | |||||||||||||||
Cash | $ 500 | $ 95,034 | $ (34,360) | $ 4,653 | $ 1,737 | ||||||||||
Purchase price of acquisition | 95,034 | ||||||||||||||
Other liabilities | 2,922 | ||||||||||||||
Goodwill | 39,970 | $ 793,708 | $ 773,810 | $ 733,503 | 793,708 | 773,810 | 733,503 | ||||||||
Loans | 479,877 | ||||||||||||||
Investment securities | 39,770 | ||||||||||||||
Deposits | (568,161) | ||||||||||||||
Increase in deposits | $ 1,713,733 | $ 104,435 | $ (122,049) | ||||||||||||
Vermont [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Number of counties where the bank has facilities | country | 12 | 12 | |||||||||||||
Massachusetts [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Number of counties where the bank has facilities | country | 1 | 1 | |||||||||||||
Upstate New York [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Number of counties where the bank has facilities | country | 42 | 42 | |||||||||||||
Customer Lists [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Intangibles | $ 500 | ||||||||||||||
Other Intangibles [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Intangibles | 1,650 | ||||||||||||||
Steuben Trust Corporation [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Cash | $ 98,600 | $ 21,613 | |||||||||||||
Purchase price of acquisition | 98,555 | ||||||||||||||
Number of branch locations | Office | 11 | ||||||||||||||
Issuance of common shares (in shares) | shares | 1,360 | ||||||||||||||
Issuance of common shares | $ 21,600 | ||||||||||||||
Assets acquired | 607,800 | ||||||||||||||
Other liabilities | $ 5,095 | 5,095 | |||||||||||||
Goodwill | 20,200 | 20,235 | 20,235 | ||||||||||||
Loans | 339,700 | 339,017 | 339,017 | ||||||||||||
Investment securities | 180,500 | 180,497 | 180,497 | ||||||||||||
Deposits | 516,300 | (516,274) | (516,274) | ||||||||||||
Revenue earned | 2,600 | ||||||||||||||
Direct expenses | $ 7,700 | ||||||||||||||
Steuben Trust Corporation [Member] | Western New York State [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Number of new counties where the bank has extended footprints | country | 2 | ||||||||||||||
Number of counties where the bank has facilities | country | 4 | ||||||||||||||
Steuben Trust Corporation [Member] | Other Intangibles [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Intangibles | 1,196 | 1,196 | |||||||||||||
Kinderhook Bank Corp [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Cash | 93,384 | ||||||||||||||
Purchase price of acquisition | $ 93,384 | ||||||||||||||
Number of branch locations | Office | 11 | ||||||||||||||
Other liabilities | $ 2,922 | ||||||||||||||
Goodwill | 39,970 | ||||||||||||||
Loans | 479,877 | ||||||||||||||
Investment securities | 39,770 | ||||||||||||||
Deposits | $ (568,161) | ||||||||||||||
Revenue earned | 16,300 | ||||||||||||||
Direct expenses | $ 7,400 | ||||||||||||||
Increase (decrease) in other liabilities as a result of reclassification and adjustment | $ 1,300 | 40 | |||||||||||||
Increase (decrease) in goodwill as a result of fair value adjustment | 40 | ||||||||||||||
Decrease in loans | 200 | ||||||||||||||
Decrease in other assets | 1,700 | ||||||||||||||
Increased in accrued interest and fees receivable | $ 10 | $ 10 | |||||||||||||
Increase decrease in premises and equipment | $ 500 | ||||||||||||||
Kinderhook Bank Corp [Member] | Upstate New York [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Number of counties where the bank has facilities | country | 5 | ||||||||||||||
Assets acquired | $ 642,800 | ||||||||||||||
Revenue earned | 10,600 | ||||||||||||||
Direct expenses | 4,700 | ||||||||||||||
Kinderhook Bank Corp [Member] | Other Intangibles [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Intangibles | $ 0 | ||||||||||||||
Wealth Resources Network, Inc [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Cash | $ 1,200 | ||||||||||||||
Wealth Resources Network, Inc [Member] | Customer Lists [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Intangibles | $ 1,200 | ||||||||||||||
HR Consultants (SA), LLC [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Cash | $ 300 | ||||||||||||||
HR Consultants (SA), LLC [Member] | Customer Lists [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Intangibles | $ 300 | ||||||||||||||
Penna & Associates Agency, Inc. [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Cash | $ 800 | ||||||||||||||
Goodwill | 300 | ||||||||||||||
Penna & Associates Agency, Inc. [Member] | Customer Lists [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Intangibles | 300 | ||||||||||||||
Styles Bridges Associates [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Cash | 700 | ||||||||||||||
Styles Bridges Associates [Member] | Customer Lists [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Intangibles | $ 700 | ||||||||||||||
Gordon B. Roberts Agency, Inc [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Increase (decrease) in goodwill as a result of fair value adjustment | $ 1,100 | ||||||||||||||
NRS [Member] | |||||||||||||||
Acquisitions [Abstract] | |||||||||||||||
Increase (decrease) in other liabilities as a result of reclassification and adjustment | $ (300) | ||||||||||||||
Increase (decrease) in goodwill as a result of fair value adjustment | $ (300) |
ACQUISITIONS, Estimated Fair Va
ACQUISITIONS, Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 12, 2020 | Sep. 18, 2019 | Jul. 12, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Consideration paid [Abstract] | ||||||
Cash | $ 500 | $ 95,034 | $ (34,360) | $ 4,653 | $ 1,737 | |
Community Bank System, Inc. common stock | 0 | |||||
Total net consideration paid | 95,034 | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Cash and cash equivalents | 90,381 | |||||
Investment securities | 39,770 | |||||
Loans | 479,877 | |||||
Premises and equipment | 13,970 | |||||
Accrued interest and fees receivable | 1,130 | |||||
Other assets | 14,109 | |||||
Deposits | (568,161) | |||||
Other liabilities | (2,922) | |||||
Other Federal Home Loan Bank borrowings | (2,420) | |||||
Subordinated notes payable | (13,831) | |||||
Subordinated debt held by unconsolidated subsidiary trusts | (2,062) | |||||
Total identifiable assets, net | 55,064 | |||||
Goodwill | 39,970 | 793,708 | $ 773,810 | $ 733,503 | ||
Core Deposit Intangibles [Member] | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Intangibles | 3,573 | |||||
Other Intangibles [Member] | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Intangibles | 1,650 | |||||
Kinderhook Bank Corp [Member] | ||||||
Consideration paid [Abstract] | ||||||
Cash | 93,384 | |||||
Community Bank System, Inc. common stock | 0 | |||||
Total net consideration paid | 93,384 | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Cash and cash equivalents | 90,381 | |||||
Investment securities | 39,770 | |||||
Loans | 479,877 | |||||
Premises and equipment | 13,970 | |||||
Accrued interest and fees receivable | 1,130 | |||||
Other assets | 14,109 | |||||
Deposits | (568,161) | |||||
Other liabilities | (2,922) | |||||
Other Federal Home Loan Bank borrowings | (2,420) | |||||
Subordinated notes payable | (13,831) | |||||
Subordinated debt held by unconsolidated subsidiary trusts | (2,062) | |||||
Total identifiable assets, net | 53,414 | |||||
Goodwill | 39,970 | |||||
Kinderhook Bank Corp [Member] | Core Deposit Intangibles [Member] | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Intangibles | 3,573 | |||||
Kinderhook Bank Corp [Member] | Other Intangibles [Member] | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Intangibles | 0 | |||||
Other [Member] | ||||||
Consideration paid [Abstract] | ||||||
Cash | 1,650 | 1,753 | ||||
Community Bank System, Inc. common stock | 0 | 0 | ||||
Total net consideration paid | 1,650 | 1,753 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Cash and cash equivalents | 0 | 16 | ||||
Investment securities | 0 | 0 | ||||
Loans | 0 | 0 | ||||
Premises and equipment | 0 | 10 | ||||
Accrued interest and fees receivable | 0 | 0 | ||||
Other assets | 0 | 105 | ||||
Deposits | 0 | 0 | ||||
Other liabilities | 0 | (31) | ||||
Other Federal Home Loan Bank borrowings | 0 | 0 | ||||
Subordinated notes payable | 0 | 0 | ||||
Subordinated debt held by unconsolidated subsidiary trusts | 0 | 0 | ||||
Total identifiable assets, net | 1,650 | 1,443 | ||||
Goodwill | 0 | 310 | ||||
Other [Member] | Core Deposit Intangibles [Member] | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Intangibles | 0 | 0 | ||||
Other [Member] | Other Intangibles [Member] | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Intangibles | $ 1,650 | 1,343 | ||||
Steuben Trust Corporation [Member] | ||||||
Consideration paid [Abstract] | ||||||
Cash | $ 98,600 | 21,613 | ||||
Community Bank System, Inc. common stock | 76,942 | |||||
Total net consideration paid | 98,555 | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Cash and cash equivalents | 55,973 | |||||
Investment securities | 180,500 | 180,497 | ||||
Loans | 339,700 | 339,017 | ||||
Premises and equipment | 7,764 | |||||
Accrued interest and fees receivable | 2,701 | |||||
Other assets | 17,675 | |||||
Deposits | 516,300 | (516,274) | ||||
Other liabilities | (5,095) | |||||
Other Federal Home Loan Bank borrowings | (6,000) | |||||
Subordinated notes payable | 0 | |||||
Subordinated debt held by unconsolidated subsidiary trusts | (2,062) | |||||
Total identifiable assets, net | 78,320 | |||||
Goodwill | $ 20,200 | 20,235 | ||||
Steuben Trust Corporation [Member] | Core Deposit Intangibles [Member] | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Intangibles | 2,928 | |||||
Steuben Trust Corporation [Member] | Other Intangibles [Member] | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | ||||||
Intangibles | $ 1,196 |
ACQUISITIONS - Summary of Loans
ACQUISITIONS - Summary of Loans Acquired (Details) - USD ($) $ in Thousands | Jun. 12, 2020 | Jul. 12, 2019 |
Kinderhook Bank Corp [Member] | ||
Summary of loans acquired [Abstract] | ||
Contractually required principal and interest at acquisition | $ 649,734 | |
Contractual cash flows not expected to be collected | (9,648) | |
Expected cash flows at acquisition | 640,086 | |
Interest component of expected cash flows | (160,209) | |
Fair value of acquired loans | 479,877 | |
Kinderhook Bank Corp [Member] | Acquired Impaired Loans [Member] | ||
Summary of loans acquired [Abstract] | ||
Contractually required principal and interest at acquisition | 13,350 | |
Contractual cash flows not expected to be collected | (4,176) | |
Expected cash flows at acquisition | 9,174 | |
Interest component of expected cash flows | (551) | |
Fair value of acquired loans | 8,623 | |
Kinderhook Bank Corp [Member] | Acquired Non Impaired Loans [Member] | ||
Summary of loans acquired [Abstract] | ||
Contractually required principal and interest at acquisition | 636,384 | |
Contractual cash flows not expected to be collected | (5,472) | |
Expected cash flows at acquisition | 630,912 | |
Interest component of expected cash flows | (159,658) | |
Fair value of acquired loans | $ 471,254 | |
Steuben Trust Corporation [Member] | Acquired Deteriorated | ||
Summary of loans acquired [Abstract] | ||
Par value of loans at acquisition | $ 35,906 | |
Allowance for credit losses at acquisition | (668) | |
Non-credit discount at acquisition | 103 | |
Fair value of acquired loans | 35,341 | |
Steuben Trust Corporation [Member] | Non-PCD Loans | ||
Summary of loans acquired [Abstract] | ||
Contractually required principal and interest at acquisition | 400,738 | |
Contractual cash flows not expected to be collected | (2,994) | |
Expected cash flows at acquisition | 397,744 | |
Interest component of expected cash flows | (94,068) | |
Fair value of acquired loans | $ 303,676 |
ACQUISITIONS, Intangible Asset,
ACQUISITIONS, Intangible Asset, Goodwill and Acquisition-related Expenses (Details) - USD ($) $ in Thousands | Jul. 12, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value of Subordinated Notes Payable [Abstract] | ||||
Subordinated notes payable | $ 3,303 | $ 13,795 | ||
Summary of loans acquired [Abstract] | ||||
Merger and acquisition integration related (recoveries) expenses | $ 4,933 | $ 8,608 | $ (769) | |
Kinderhook Bank Corp [Member] | Core Deposit Intangibles [Member] | ||||
Intangible Assets [Abstract] | ||||
Estimated useful life | 8 years | |||
Kinderhook Bank Corp [Member] | Other Intangibles [Member] | ||||
Intangible Assets [Abstract] | ||||
Estimated useful life | 8 years | |||
Kinderhook Bank Corp [Member] | Subordinated Notes Maturing in February 2028 [Member] | ||||
Fair Value of Subordinated Notes Payable [Abstract] | ||||
Subordinated notes payable | $ 3,000 | |||
Fixed interest rate percentage | 6.00% | |||
Maturity date | Feb. 29, 2028 | |||
Kinderhook Bank Corp [Member] | Subordinated Notes Maturing in November 2025 [Member] | ||||
Fair Value of Subordinated Notes Payable [Abstract] | ||||
Subordinated notes payable | $ 10,000 | |||
Fixed interest rate percentage | 6.375% | |||
Maturity date | Nov. 30, 2025 |
ACQUISITIONS - Supplemental Pro
ACQUISITIONS - Supplemental Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Pro Forma Financial Information [Abstract] | |||
Merger and acquisition integration related (recoveries) expenses | $ 4,933 | $ 8,608 | $ (769) |
Total revenue, net of interest expense, pro forma | 607,382 | 626,229 | 594,174 |
Net income, pro forma | 171,147 | 180,237 | 167,914 |
Steuben Trust Corporation [Member] | |||
Supplemental Pro Forma Financial Information [Abstract] | |||
Acquisitions-related expenses | 4,800 | ||
Merger and acquisition integration related (recoveries) expenses | $ 4,900 | 8,600 | $ 800 |
Kinderhook Bank Corp [Member] | |||
Supplemental Pro Forma Financial Information [Abstract] | |||
Acquisitions-related expenses | $ 8,000 |
INVESTMENT SECURITIES - Availab
INVESTMENT SECURITIES - Available-for-Sale Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-Sale Portfolio [Abstract] | ||
Amortized cost | $ 3,427,779 | $ 3,011,551 |
Gross unrealized gains | 136,901 | 42,017 |
Gross unrealized losses | 16,788 | 9,140 |
Fair value | 3,547,892 | 3,044,428 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 3,427,779 | |
Fair value | 3,547,892 | |
U.S. Treasury and Agency Securities [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 2,423,236 | 2,030,060 |
Gross unrealized gains | 94,741 | 21,674 |
Gross unrealized losses | 16,595 | 7,975 |
Fair value | 2,501,382 | 2,043,759 |
Obligations of State and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 451,028 | 497,852 |
Gross unrealized gains | 24,632 | 14,382 |
Gross unrealized losses | 0 | 26 |
Fair value | 475,660 | 512,208 |
Government Agency Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 506,540 | 428,491 |
Gross unrealized gains | 16,280 | 5,478 |
Gross unrealized losses | 182 | 1,107 |
Fair value | 522,638 | 432,862 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 4,499 | 2,527 |
Gross unrealized gains | 137 | 1 |
Gross unrealized losses | 1 | 0 |
Fair value | 4,635 | 2,528 |
Government Agency Collateralized Mortgage Obligations [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 42,476 | 52,621 |
Gross unrealized gains | 1,111 | 482 |
Gross unrealized losses | 10 | 32 |
Fair value | 43,577 | 53,071 |
Federal Reserve Bank Stock [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Gross unrealized losses | 0 | 0 |
Other Equity Securities [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Gross unrealized losses | 0 | 0 |
Federal Home Loan Bank Common Stock [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Gross unrealized losses | $ 0 | $ 0 |
INVESTMENT SECURITIES - Equity
INVESTMENT SECURITIES - Equity and Other Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Equity and Other Securities [Abstract] | ||
Amortized cost | $ 46,511 | $ 42,965 |
Gross unrealized gains | 944 | 950 |
Gross unrealized losses | 0 | 0 |
Fair value | 47,455 | 43,915 |
Equity Securities, at Fair Value [Abstract] | ||
Amortized cost | 251 | 251 |
Gross unrealized gains | 194 | 200 |
Gross unrealized losses | 0 | 0 |
Fair value | 445 | 451 |
Federal Home Loan Bank Common Stock [Member] | ||
Other Equity Securities, at Adjusted Cost [Abstract] | ||
Amortized cost | 7,468 | 7,246 |
Gross unrealized gains | 0 | 0 |
Fair value | 7,468 | 7,246 |
Federal Reserve Bank Stock [Member] | ||
Other Equity Securities, at Adjusted Cost [Abstract] | ||
Amortized cost | 33,916 | 30,922 |
Gross unrealized gains | 0 | 0 |
Fair value | 33,916 | 30,922 |
Other Equity Securities [Member] | ||
Other Equity Securities, at Adjusted Cost [Abstract] | ||
Amortized cost | 4,876 | 4,546 |
Gross unrealized gains | 750 | 750 |
Fair value | $ 5,626 | $ 5,296 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2020USD ($)position | Dec. 31, 2019USD ($)position |
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | position | 117 | |
12 months or longer | position | 3 | |
Total | position | 120 | |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 913,612 | |
12 months or longer | 14 | |
Total | 913,626 | |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 16,788 | |
12 months or longer | 0 | |
Total | 16,788 | |
Available-for-sale, allowance for credit losses | $ 0 | |
U.S. Treasury and Agency Securities [Member] | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | position | 13 | 12 |
12 months or longer | position | 0 | 5 |
Total | position | 13 | 17 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 831,015 | $ 592,678 |
12 months or longer | 0 | 25,998 |
Total | 831,015 | 618,676 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 16,595 | 7,970 |
12 months or longer | 0 | 5 |
Total | $ 16,595 | $ 7,975 |
Obligations of State and Political Subdivisions [Member] | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | position | 1 | 21 |
12 months or longer | position | 0 | 0 |
Total | position | 1 | 21 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 358 | $ 22,716 |
12 months or longer | 0 | 0 |
Total | 358 | 22,716 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 0 | 26 |
12 months or longer | 0 | 0 |
Total | $ 0 | $ 26 |
Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | position | 89 | 50 |
12 months or longer | position | 2 | 52 |
Total | position | 91 | 102 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 75,992 | $ 89,237 |
12 months or longer | 14 | 52,975 |
Total | 76,006 | 142,212 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 182 | 341 |
12 months or longer | 0 | 766 |
Total | $ 182 | $ 1,107 |
Corporate Debt Securities [Member] | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | position | 1 | 5 |
12 months or longer | position | 0 | 5 |
Total | position | 1 | 10 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 1,001 | $ 5,971 |
12 months or longer | 0 | 4,405 |
Total | 1,001 | 10,376 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 1 | 14 |
12 months or longer | 0 | 18 |
Total | $ 1 | $ 32 |
Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | position | 13 | 88 |
12 months or longer | position | 1 | 62 |
Total | position | 14 | 150 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 5,246 | $ 710,602 |
12 months or longer | 0 | 83,378 |
Total | 5,246 | 793,980 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 10 | 8,351 |
12 months or longer | 0 | 789 |
Total | $ 10 | $ 9,140 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Due in one year or less | $ 215,400 | |
Due after one through five years | 732,939 | |
Due after five years through ten years | 460,678 | |
Due after ten years | 1,469,746 | |
Subtotal | 2,878,763 | |
Amortized cost | 3,427,779 | |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Due in one year or less | 217,938 | |
Due after one through five years | 768,761 | |
Due after five years through ten years | 496,977 | |
Due after ten years | 1,498,001 | |
Subtotal | 2,981,677 | |
Fair value | 3,547,892 | |
Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Amortized cost | 506,540 | $ 428,491 |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Fair value | 522,638 | 432,862 |
Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Amortized cost | 42,476 | 52,621 |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Fair value | 43,577 | 53,071 |
U.S. Treasury and Agency Securities [Member] | ||
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Amortized cost | 2,423,236 | 2,030,060 |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Fair value | $ 2,501,382 | $ 2,043,759 |
INVESTMENT SECURITIES - Inves_2
INVESTMENT SECURITIES - Investment Securities Pledged as Collateral (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pledged Financial Instruments, Not Separately Reported, Securities, by Type of Security [Abstract] | ||
Investment securities pledged to collateralize certain deposits and borrowings | $ 2,030 | $ 1,470 |
U.S. Treasury and Agency Securities [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Pledged Financial Instruments, Not Separately Reported, Securities, by Type of Security [Abstract] | ||
Investment securities pledged to collateralize certain deposits and borrowings | $ 473.4 | $ 502.8 |
INVESTMENT SECURITIES - Proceed
INVESTMENT SECURITIES - Proceeds from Sales of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Proceeds from sales of securities [Abstract] | |||
Proceeds from sales of securities | $ 0 | $ 590,179 | $ 0 |
U.S. Treasury and Agency Securities [Member] | |||
Proceeds from sales of securities [Abstract] | |||
Proceeds from sales of securities | 590,200 | ||
Gross realized gains | 5,000 | ||
Gross realized losses | $ 100 |
LOANS - Loan Summary (Details)
LOANS - Loan Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans receivable, net [Abstract] | |||
Gross loans, including deferred origination costs | $ 7,415,952 | $ 6,890,543 | |
Allowance for credit losses | (60,869) | (49,911) | $ (49,284) |
Net loans | 7,355,083 | 6,840,632 | |
Net deferred loan origination costs | 25,500 | 32,300 | |
Loans receivable, related parties [Roll Forward] | |||
Balance at beginning of year | 17,486 | 20,661 | |
New loans | 4,194 | 5,720 | |
Payments | (6,131) | (8,895) | |
Balance at end of year | 15,549 | 17,486 | |
Business Lending [Member] | |||
Loans receivable, net [Abstract] | |||
Gross loans, including deferred origination costs | 2,775,876 | ||
Consumer Mortgage [Member] | |||
Loans receivable, net [Abstract] | |||
Allowance for credit losses | (10,269) | ||
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |||
Loans receivable, net [Abstract] | |||
Gross loans, including deferred origination costs | 2,401,499 | 2,430,902 | |
Allowance for credit losses | (10,269) | (10,124) | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | |||
Loans receivable, net [Abstract] | |||
Gross loans, including deferred origination costs | 3,440,077 | 2,775,876 | |
Allowance for credit losses | (19,426) | (18,522) | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||
Loans receivable, net [Abstract] | |||
Gross loans, including deferred origination costs | 1,021,885 | 1,113,062 | |
Allowance for credit losses | (13,712) | (14,366) | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||
Loans receivable, net [Abstract] | |||
Gross loans, including deferred origination costs | 152,657 | 184,378 | |
Allowance for credit losses | (3,255) | (3,095) | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | |||
Loans receivable, net [Abstract] | |||
Gross loans, including deferred origination costs | $ 399,834 | 386,325 | |
Allowance for credit losses | $ (2,129) | $ (2,144) |
LOANS - Credit Quality By Past
LOANS - Credit Quality By Past Due Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Aged analysis of the company's loans [Abstract] | ||
Nonaccrual | $ 1,500 | |
Total loans | 7,415,952 | $ 6,890,543 |
Interest income on nonaccrual loans | 0 | 0 |
Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 3,922 | 2,707 |
Nonaccrual | 72,929 | 15,415 |
Total past due | 111,610 | 48,684 |
Current | 7,304,342 | 5,401,908 |
Total loans | 7,415,952 | 5,450,592 |
Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 34,759 | 30,562 |
Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 2,719 | |
Nonaccrual | 3,420 | |
Total past due | 16,429 | |
Acquired impaired | 11,797 | |
Current | 1,411,725 | |
Total loans | 1,439,951 | |
Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 10,290 | |
Business Lending [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 2,775,876 | |
Business Lending [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 1,856,585 | |
Business Lending [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 919,291 | |
Consumer Mortgage [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 1,996,716 | |
Consumer Mortgage [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 434,186 | |
Consumer Indirect [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 1,107,308 | |
Consumer Indirect [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 5,754 | |
Consumer Direct [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 175,976 | |
Consumer Direct [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 8,402 | |
Home Equity [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 314,007 | |
Home Equity [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 72,318 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 3,440,077 | 2,775,876 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 59 | 126 |
Nonaccrual | 55,709 | 3,840 |
Total past due | 60,664 | 7,902 |
Current | 3,379,413 | 1,848,683 |
Total loans | 3,440,077 | 1,856,585 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 4,896 | 3,936 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 2,173 | |
Nonaccrual | 570 | |
Total past due | 11,261 | |
Acquired impaired | 11,797 | |
Current | 896,233 | |
Total loans | 919,291 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 8,518 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 2,401,499 | 2,430,902 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 3,051 | 2,052 |
Nonaccrual | 14,970 | 10,131 |
Total past due | 31,257 | 23,173 |
Current | 2,370,242 | 1,973,543 |
Total loans | 2,401,499 | 1,996,716 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 13,236 | 10,990 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 277 | |
Nonaccrual | 2,386 | |
Total past due | 3,553 | |
Acquired impaired | 0 | |
Current | 430,633 | |
Total loans | 434,186 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 890 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 1,021,885 | 1,113,062 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 219 | 125 |
Nonaccrual | 1 | 0 |
Total past due | 13,381 | 12,798 |
Current | 1,008,504 | 1,094,510 |
Total loans | 1,021,885 | 1,107,308 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 13,161 | 12,673 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 31 | |
Nonaccrual | 0 | |
Total past due | 110 | |
Acquired impaired | 0 | |
Current | 5,644 | |
Total loans | 5,754 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 79 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 152,657 | 184,378 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 28 | 76 |
Nonaccrual | 3 | 0 |
Total past due | 1,201 | 1,531 |
Current | 151,456 | 174,445 |
Total loans | 152,657 | 175,976 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 1,170 | 1,455 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 0 | |
Nonaccrual | 52 | |
Total past due | 111 | |
Acquired impaired | 0 | |
Current | 8,291 | |
Total loans | 8,402 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | 59 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total loans | 399,834 | 386,325 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 565 | 328 |
Nonaccrual | 2,246 | 1,444 |
Total past due | 5,107 | 3,280 |
Current | 394,727 | 310,727 |
Total loans | 399,834 | 314,007 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | $ 2,296 | 1,508 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Acquired Loans [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
90 + days past due and still accruing | 238 | |
Nonaccrual | 412 | |
Total past due | 1,394 | |
Acquired impaired | 0 | |
Current | 70,924 | |
Total loans | 72,318 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans [Abstract] | ||
Total past due | $ 744 |
LOANS - Amount of Business Lend
LOANS - Amount of Business Lending Loans by Credit Quality Categories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | $ 7,415,952 | $ 6,890,543 |
Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 7,415,952 | 5,450,592 |
Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 1,439,951 | |
Business Lending [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 881,201 | |
2019 | 391,969 | |
2018 | 373,807 | |
2017 | 263,820 | |
2016 | 275,730 | |
Prior | 660,921 | |
Revolving loans amortized cost basis | 592,629 | |
Total | 3,440,077 | |
Loans | 2,775,876 | |
Business Lending [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 1,856,585 | |
Business Lending [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 919,291 | |
Business Lending [Member] | Pass [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 860,178 | |
2019 | 351,350 | |
2018 | 312,087 | |
2017 | 217,138 | |
2016 | 231,453 | |
Prior | 543,999 | |
Revolving loans amortized cost basis | 483,018 | |
Total | 2,999,223 | |
Loans | 2,487,973 | |
Business Lending [Member] | Pass [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 1,655,280 | |
Business Lending [Member] | Pass [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 832,693 | |
Business Lending [Member] | Special Mention [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 14,687 | |
2019 | 36,041 | |
2018 | 28,410 | |
2017 | 21,875 | |
2016 | 29,386 | |
Prior | 51,657 | |
Revolving loans amortized cost basis | 52,732 | |
Total | 234,788 | |
Loans | 144,277 | |
Business Lending [Member] | Special Mention [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 98,953 | |
Business Lending [Member] | Special Mention [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 45,324 | |
Business Lending [Member] | Classified [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 6,336 | |
2019 | 4,560 | |
2018 | 30,422 | |
2017 | 24,807 | |
2016 | 14,891 | |
Prior | 65,157 | |
Revolving loans amortized cost basis | 56,000 | |
Total | 202,173 | |
Loans | 131,829 | |
Business Lending [Member] | Classified [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 102,352 | |
Business Lending [Member] | Classified [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 29,477 | |
Business Lending [Member] | Doubtful [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 0 | |
2019 | 18 | |
2018 | 2,888 | |
2017 | 0 | |
2016 | 0 | |
Prior | 108 | |
Revolving loans amortized cost basis | 879 | |
Total | 3,893 | |
Loans | 0 | |
Business Lending [Member] | Doubtful [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 0 | |
Business Lending [Member] | Doubtful [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 0 | |
Business Lending [Member] | Acquired Impaired [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 11,797 | |
Business Lending [Member] | Acquired Impaired [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 0 | |
Business Lending [Member] | Acquired Impaired [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 11,797 | |
All Other Loans [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 3,594,007 | |
All Other Loans [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 520,660 | |
All Other Loans [Member] | Performing [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 3,579,851 | |
All Other Loans [Member] | Performing [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 517,264 | |
All Other Loans [Member] | Nonperforming Financial Instruments [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 14,156 | |
All Other Loans [Member] | Nonperforming Financial Instruments [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 3,396 | |
Consumer Mortgage [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 375,637 | |
2019 | 330,825 | |
2018 | 248,468 | |
2017 | 240,217 | |
2016 | 246,256 | |
Prior | 942,393 | |
Revolving loans amortized cost basis | 17,703 | |
Total | 2,401,499 | |
Consumer Mortgage [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 1,996,716 | |
Consumer Mortgage [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 434,186 | |
Consumer Mortgage [Member] | Performing [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 1,984,533 | |
Consumer Mortgage [Member] | Performing [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 431,523 | |
Consumer Mortgage [Member] | Nonperforming Financial Instruments [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 12,183 | |
Consumer Mortgage [Member] | Nonperforming Financial Instruments [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 2,663 | |
Consumer Mortgage [Member] | FICO AB [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 260,588 | |
2019 | 227,027 | |
2018 | 166,913 | |
2017 | 164,051 | |
2016 | 161,256 | |
Prior | 617,685 | |
Revolving loans amortized cost basis | 321 | |
Total | 1,597,841 | |
Consumer Mortgage [Member] | FICO AB [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 260,588 | |
2019 | 227,027 | |
2018 | 166,638 | |
2017 | 163,653 | |
2016 | 160,911 | |
Prior | 614,976 | |
Revolving loans amortized cost basis | 321 | |
Total | 1,594,114 | |
Consumer Mortgage [Member] | FICO AB [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 0 | |
2019 | 0 | |
2018 | 275 | |
2017 | 398 | |
2016 | 345 | |
Prior | 2,709 | |
Revolving loans amortized cost basis | 0 | |
Total | 3,727 | |
Consumer Mortgage [Member] | FICO CDE [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 115,049 | |
2019 | 103,798 | |
2018 | 81,555 | |
2017 | 76,166 | |
2016 | 85,000 | |
Prior | 324,708 | |
Revolving loans amortized cost basis | 17,382 | |
Total | 803,658 | |
Consumer Mortgage [Member] | FICO CDE [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 115,049 | |
2019 | 102,788 | |
2018 | 80,973 | |
2017 | 75,289 | |
2016 | 83,214 | |
Prior | 314,668 | |
Revolving loans amortized cost basis | 17,382 | |
Total | 789,363 | |
Consumer Mortgage [Member] | FICO CDE [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 0 | |
2019 | 1,010 | |
2018 | 582 | |
2017 | 877 | |
2016 | 1,786 | |
Prior | 10,040 | |
Revolving loans amortized cost basis | 0 | |
Total | 14,295 | |
Consumer Indirect [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 303,522 | |
2019 | 305,953 | |
2018 | 202,455 | |
2017 | 86,514 | |
2016 | 61,465 | |
Prior | 61,976 | |
Revolving loans amortized cost basis | 0 | |
Total | 1,021,885 | |
Consumer Indirect [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 1,107,308 | |
Consumer Indirect [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 5,754 | |
Consumer Indirect [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 303,471 | |
2019 | 305,901 | |
2018 | 202,373 | |
2017 | 86,497 | |
2016 | 61,449 | |
Prior | 61,975 | |
Revolving loans amortized cost basis | 0 | |
Total | 1,021,666 | |
Consumer Indirect [Member] | Performing [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 1,107,183 | |
Consumer Indirect [Member] | Performing [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 5,723 | |
Consumer Indirect [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 51 | |
2019 | 52 | |
2018 | 82 | |
2017 | 17 | |
2016 | 16 | |
Prior | 1 | |
Revolving loans amortized cost basis | 0 | |
Total | 219 | |
Consumer Indirect [Member] | Nonperforming Financial Instruments [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 125 | |
Consumer Indirect [Member] | Nonperforming Financial Instruments [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 31 | |
Consumer Direct [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 49,182 | |
2019 | 47,011 | |
2018 | 27,874 | |
2017 | 12,331 | |
2016 | 5,232 | |
Prior | 4,149 | |
Revolving loans amortized cost basis | 6,878 | |
Total | 152,657 | |
Consumer Direct [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 175,976 | |
Consumer Direct [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 8,402 | |
Consumer Direct [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 49,181 | |
2019 | 46,992 | |
2018 | 27,872 | |
2017 | 12,326 | |
2016 | 5,232 | |
Prior | 4,146 | |
Revolving loans amortized cost basis | 6,878 | |
Total | 152,627 | |
Consumer Direct [Member] | Performing [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 175,900 | |
Consumer Direct [Member] | Performing [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 8,350 | |
Consumer Direct [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 1 | |
2019 | 19 | |
2018 | 2 | |
2017 | 5 | |
2016 | 0 | |
Prior | 3 | |
Revolving loans amortized cost basis | 0 | |
Total | 30 | |
Consumer Direct [Member] | Nonperforming Financial Instruments [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 76 | |
Consumer Direct [Member] | Nonperforming Financial Instruments [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 52 | |
Home Equity [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 48,145 | |
2019 | 48,804 | |
2018 | 28,147 | |
2017 | 23,628 | |
2016 | 18,011 | |
Prior | 36,390 | |
Revolving loans amortized cost basis | 196,709 | |
Total | 399,834 | |
Home Equity [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 314,007 | |
Home Equity [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 72,318 | |
Home Equity [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 48,145 | |
2019 | 48,780 | |
2018 | 28,074 | |
2017 | 23,524 | |
2016 | 17,828 | |
Prior | 35,900 | |
Revolving loans amortized cost basis | 194,773 | |
Total | 397,024 | |
Home Equity [Member] | Performing [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 312,235 | |
Home Equity [Member] | Performing [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 71,668 | |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 0 | |
2019 | 24 | |
2018 | 73 | |
2017 | 104 | |
2016 | 183 | |
Prior | 490 | |
Revolving loans amortized cost basis | 1,936 | |
Total | $ 2,810 | |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | Legacy Loan [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | 1,772 | |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | Acquired Loans [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Loans | $ 650 |
LOANS - Summary of Impaired Loa
LOANS - Summary of Impaired Loans, Excluding Purchased Impaired (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired loans [Abstract] | |||
Loans with allowance allocation | $ 27,437 | $ 0 | |
Loans without allowance allocation | 8,138 | 1,414 | |
Carrying balance | 35,575 | 1,414 | |
Contractual balance | 38,362 | 2,944 | |
Specifically allocated allowance | 3,874 | 0 | |
Average impaired loans | 12,200 | 5,100 | $ 7,600 |
Interest income recognized | $ 0 | $ 0 | $ 0 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructuring (TDR) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)borrowerloan | Dec. 31, 2019USD ($)loan | |
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | 247 | 248 |
TDRs, amount | $ 6,984 | $ 6,982 |
Loans modified in TDR during the year, number | 55 | 73 |
Loans modified in TDR during the year, amount | $ 1,756 | $ 2,798 |
Customer Payment Deferral Program, Deferral Period | 180 days | |
Number of borrowers representing $66.5 million in outstanding loan balances | borrower | 74 | |
Outstanding loan balances of 74 number of borrowers | $ 66,500 | |
Percentage of total loan outstanding | 0.90% | |
Outstanding loan balances of 63 number of borrowers | $ 65,700 | |
Number of borrowers representing $0.8 million in outstanding loan balances | borrower | 11 | |
Outstanding loan balances of 11 number of borrowers | $ 800 | |
Number of borrowers representing $65.7 million in outstanding loan balances | borrower | 63 | |
Maximum [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
Threshold balance of TDR loans collectively included in general loan loss allocation and qualitative review | $ 500 | |
Threshold balance of loan individually evaluated for impairment | $ 500 | |
Nonaccrual [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | 73 | 80 |
TDRs, amount | $ 3,227 | $ 3,609 |
Accruing [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | 174 | 168 |
TDRs, amount | $ 3,757 | $ 3,373 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 104 | 106 |
TDRs, amount | $ 4,679 | $ 4,530 |
Loans modified in TDR during the year, number | loan | 17 | 22 |
Loans modified in TDR during the year, amount | $ 1,339 | $ 1,519 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Nonaccrual [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 56 | 59 |
TDRs, amount | $ 2,413 | $ 2,638 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Accruing [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 48 | 47 |
TDRs, amount | $ 2,266 | $ 1,892 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 10 | 11 |
TDRs, amount | $ 720 | $ 882 |
Loans modified in TDR during the year, number | loan | 1 | 6 |
Loans modified in TDR during the year, amount | $ 4 | $ 685 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Nonaccrual [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 6 | 8 |
TDRs, amount | $ 529 | $ 681 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Accruing [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 4 | 3 |
TDRs, amount | $ 191 | $ 201 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 86 | 84 |
TDRs, amount | $ 951 | $ 941 |
Loans modified in TDR during the year, number | loan | 31 | 33 |
Loans modified in TDR during the year, amount | $ 333 | $ 364 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Nonaccrual [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 0 | 0 |
TDRs, amount | $ 0 | $ 0 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Accruing [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 86 | 84 |
TDRs, amount | $ 951 | $ 941 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 23 | 23 |
TDRs, amount | $ 85 | $ 101 |
Loans modified in TDR during the year, number | loan | 3 | 6 |
Loans modified in TDR during the year, amount | $ 10 | $ 49 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Nonaccrual [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 0 | 0 |
TDRs, amount | $ 0 | $ 0 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Accruing [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 23 | 23 |
TDRs, amount | $ 85 | $ 101 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 24 | 24 |
TDRs, amount | $ 549 | $ 528 |
Loans modified in TDR during the year, number | loan | 3 | 6 |
Loans modified in TDR during the year, amount | $ 70 | $ 181 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Nonaccrual [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 11 | 13 |
TDRs, amount | $ 285 | $ 290 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Accruing [Member] | ||
Troubled Debt Restructurings (TDRs) [Abstract] | ||
TDRs, number | loan | 13 | 11 |
TDRs, amount | $ 264 | $ 238 |
LOANS - Allowance for Loan Loss
LOANS - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | $ 49,911 | $ 49,284 | |
Charge-offs | (13,727) | ||
Recoveries | 5,924 | ||
Provision | 14,212 | 8,430 | $ 10,837 |
Balance, end of period | 60,869 | 49,911 | 49,284 |
Acquired Deteriorated | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 0 | ||
Balance, end of period | 0 | ||
Consumer Mortgage [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 10,269 | ||
Balance, end of period | 10,269 | ||
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 10,269 | 10,124 | |
Charge-offs | (1,372) | ||
Recoveries | 60 | ||
Provision | 1,457 | ||
Balance, end of period | 10,269 | 10,124 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 19,426 | 18,522 | |
Charge-offs | (2,334) | ||
Recoveries | 826 | ||
Provision | 2,412 | ||
Balance, end of period | 19,426 | 18,522 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 13,712 | 14,366 | |
Charge-offs | (7,631) | ||
Recoveries | 4,180 | ||
Provision | 2,797 | ||
Balance, end of period | 13,712 | 14,366 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 3,255 | 3,095 | |
Charge-offs | (1,945) | ||
Recoveries | 710 | ||
Provision | 1,395 | ||
Balance, end of period | 3,255 | 3,095 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 2,129 | 2,144 | |
Charge-offs | (445) | ||
Recoveries | 148 | ||
Provision | 282 | ||
Balance, end of period | 2,129 | 2,144 | |
Unallocated Financing Receivables [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 957 | 1,000 | |
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | (43) | ||
Balance, end of period | 957 | $ 1,000 | |
ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 51,268 | ||
Charge-offs | (10,664) | ||
Recoveries | 5,689 | ||
Provision | 10,914 | ||
Balance, end of period | 60,869 | 51,268 | |
ASU 2016-13 [Member] | Acquired Deteriorated | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 3,072 | ||
Charge-offs | (91) | ||
Recoveries | 440 | ||
Provision | (2,207) | ||
Balance, end of period | 1,882 | 3,072 | |
ASU 2016-13 [Member] | Consumer Mortgage [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 9,218 | ||
Charge-offs | (862) | ||
Recoveries | 130 | ||
Provision | 2,040 | ||
Balance, end of period | 10,672 | 9,218 | |
ASU 2016-13 [Member] | Commercial Portfolio Segment [Member] | Business Lending [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 19,714 | ||
Charge-offs | (1,497) | ||
Recoveries | 356 | ||
Provision | 7,274 | ||
Balance, end of period | 28,190 | 19,714 | |
ASU 2016-13 [Member] | Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 12,715 | ||
Charge-offs | (6,382) | ||
Recoveries | 3,992 | ||
Provision | 3,188 | ||
Balance, end of period | 13,696 | 12,715 | |
ASU 2016-13 [Member] | Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 2,612 | ||
Charge-offs | (1,633) | ||
Recoveries | 743 | ||
Provision | 1,398 | ||
Balance, end of period | 3,207 | 2,612 | |
ASU 2016-13 [Member] | Consumer Portfolio Segment [Member] | Home Equity [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 2,937 | ||
Charge-offs | (199) | ||
Recoveries | 28 | ||
Provision | (779) | ||
Balance, end of period | 2,222 | 2,937 | |
ASU 2016-13 [Member] | Unallocated Financing Receivables [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 1,000 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | 0 | ||
Balance, end of period | $ 1,000 | $ 1,000 |
LOANS - Allowance for Credit Lo
LOANS - Allowance for Credit Losses (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | $ 49,911 | $ 49,284 | |
Charge-offs | (13,727) | ||
Recoveries | 5,924 | ||
Provision | 14,212 | 8,430 | $ 10,837 |
Balance, end of period | 60,869 | 49,911 | 49,284 |
Liabilities for off-balance-sheet credit exposures [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Total allowance for credit losses [Roll Forward] | |||
Beginning balance | $ 49,911 | ||
Ending balance | $ 49,911 | ||
Allowance for Credit Losses | |||
Allowance for credit losses to total loans ratio | 0.82 | ||
Increase in allowance for credit losses to total loans ratio over the same quarter in prior year | 0.10% | ||
Minimum [Member] | COVID-19 [Member] | |||
Allowance for Credit Losses | |||
Percentage of peak unemployment | 6.00% | ||
Maximum [Member] | COVID-19 [Member] | |||
Allowance for Credit Losses | |||
Percentage of peak unemployment | 10.00% | ||
ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | $ 51,268 | ||
Charge-offs | (10,664) | ||
Recoveries | 5,689 | ||
Steuben acquisition | 3,662 | ||
Provision | 10,914 | ||
Balance, end of period | 60,869 | $ 51,268 | |
Liabilities for off-balance-sheet credit exposures [Roll Forward] | |||
Beginning balance | 1,185 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Steuben acquisition | 67 | ||
Provision | 237 | ||
Ending balance | 1,489 | 1,185 | |
Total allowance for credit losses [Roll Forward] | |||
Beginning balance | 52,453 | ||
Charge-offs | (10,664) | ||
Recoveries | 5,689 | ||
Steuben acquisition | 3,729 | ||
Provision | 11,151 | ||
Ending balance | 62,358 | 52,453 | |
ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | (1,357) | ||
Balance, end of period | (3,100) | (1,357) | |
Liabilities for off-balance-sheet credit exposures [Roll Forward] | |||
Beginning balance | 1,185 | ||
Ending balance | 1,185 | ||
Total allowance for credit losses [Roll Forward] | |||
Beginning balance | 2,542 | ||
Ending balance | 2,542 | ||
Acquired Impaired Loans [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 163 | 33 | |
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | 130 | ||
Balance, end of period | 163 | 33 | |
Acquired Impaired Loans [Member] | ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 0 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Steuben acquisition | 0 | ||
Provision | 0 | ||
Balance, end of period | 0 | 0 | |
Acquired Impaired Loans [Member] | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 163 | ||
Balance, end of period | 163 | ||
Acquired Deteriorated | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 0 | ||
Balance, end of period | 0 | ||
Acquired Deteriorated | ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 3,072 | ||
Charge-offs | (91) | ||
Recoveries | 440 | ||
Steuben acquisition | 668 | ||
Provision | (2,207) | ||
Balance, end of period | 1,882 | 3,072 | |
Acquired Deteriorated | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | (3,072) | ||
Balance, end of period | (3,072) | ||
Consumer Mortgage [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 10,269 | ||
Balance, end of period | 10,269 | ||
Consumer Mortgage [Member] | ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 9,218 | ||
Charge-offs | (862) | ||
Recoveries | 130 | ||
Steuben acquisition | 146 | ||
Provision | 2,040 | ||
Balance, end of period | 10,672 | 9,218 | |
Consumer Mortgage [Member] | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 1,051 | ||
Balance, end of period | 1,051 | ||
Commercial Portfolio Segment [Member] | Business Lending [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 19,426 | 18,522 | |
Charge-offs | (2,334) | ||
Recoveries | 826 | ||
Provision | 2,412 | ||
Balance, end of period | 19,426 | 18,522 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 19,714 | ||
Charge-offs | (1,497) | ||
Recoveries | 356 | ||
Steuben acquisition | 2,343 | ||
Provision | 7,274 | ||
Balance, end of period | 28,190 | 19,714 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 288 | ||
Balance, end of period | 288 | ||
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 10,269 | 10,124 | |
Charge-offs | (1,372) | ||
Recoveries | 60 | ||
Provision | 1,457 | ||
Balance, end of period | 10,269 | 10,124 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 13,712 | 14,366 | |
Charge-offs | (7,631) | ||
Recoveries | 4,180 | ||
Provision | 2,797 | ||
Balance, end of period | 13,712 | 14,366 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 12,715 | ||
Charge-offs | (6,382) | ||
Recoveries | 3,992 | ||
Steuben acquisition | 183 | ||
Provision | 3,188 | ||
Balance, end of period | 13,696 | 12,715 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 997 | ||
Balance, end of period | 997 | ||
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 3,255 | 3,095 | |
Charge-offs | (1,945) | ||
Recoveries | 710 | ||
Provision | 1,395 | ||
Balance, end of period | 3,255 | 3,095 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 2,612 | ||
Charge-offs | (1,633) | ||
Recoveries | 743 | ||
Steuben acquisition | 87 | ||
Provision | 1,398 | ||
Balance, end of period | 3,207 | 2,612 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 643 | ||
Balance, end of period | 643 | ||
Consumer Portfolio Segment [Member] | Home Equity [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 2,129 | 2,144 | |
Charge-offs | (445) | ||
Recoveries | 148 | ||
Provision | 282 | ||
Balance, end of period | 2,129 | 2,144 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 2,937 | ||
Charge-offs | (199) | ||
Recoveries | 28 | ||
Steuben acquisition | 235 | ||
Provision | (779) | ||
Balance, end of period | 2,222 | 2,937 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | (808) | ||
Balance, end of period | (808) | ||
Unallocated Financing Receivables [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 957 | 1,000 | |
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision | (43) | ||
Balance, end of period | 957 | $ 1,000 | |
Unallocated Financing Receivables [Member] | ASU 2016-13 [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | 1,000 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Steuben acquisition | 0 | ||
Provision | 0 | ||
Balance, end of period | 1,000 | 1,000 | |
Unallocated Financing Receivables [Member] | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Balance, beginning of period | $ (43) | ||
Balance, end of period | $ (43) |
LOANS - Carrying Amounts of Loa
LOANS - Carrying Amounts of Loans Purchased and Sold (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | $ 339,704 |
Sales | 79,709 |
Business Lending [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 253,509 |
Sales | 0 |
Consumer Mortgage [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 26,721 |
Sales | 79,709 |
Consumer Indirect [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 13,926 |
Sales | 0 |
Consumer Direct [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 5,994 |
Sales | 0 |
Home Equity [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 39,554 |
Sales | $ 0 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | $ 312,434 | $ 297,920 |
Accumulated depreciation | (146,779) | (133,282) |
Premises and equipment, net | 165,655 | 164,638 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | 29,070 | 26,301 |
Bank Premises [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | 149,217 | 141,905 |
Equipment and Construction in Progress [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | 99,239 | 89,819 |
Operating Lease Right-of-Use Assets [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Premises and equipment, gross | $ 34,908 | $ 39,895 |
GOODWILL AND IDENTIFIABLE INT_3
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of goodwill [Abstract] | |||
Goodwill, net, beginning of period | $ 773,810 | $ 733,503 | |
Goodwill, net, activity | 19,898 | $ 40,307 | |
Goodwill, net, end of period | 793,708 | 773,810 | 733,503 |
Identifiable Intangible Assets [Abstract] | |||
Gross carrying amount | 159,865 | 155,741 | |
Accumulated amortization | (106,925) | (92,628) | |
Net carrying amount | 52,940 | 63,113 | |
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract] | |||
2021 | 12,640 | ||
2022 | 10,844 | ||
2023 | 9,082 | ||
2024 | 7,551 | ||
2025 | 6,374 | ||
Thereafter | 6,449 | ||
Net carrying amount | 52,940 | 63,113 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Carrying value before valuation allowance at beginning of period | 972 | 1,137 | |
Additions | 715 | 17 | |
Acquisitions | 122 | 196 | |
Amortization | (379) | (378) | |
Carrying value before valuation allowance at end of period | 1,430 | 972 | 1,137 |
Valuation allowance balance at beginning of period | (298) | 0 | |
Impairment charges | (150) | (326) | |
Impairment recoveries | 229 | 28 | |
Valuation allowance balance at end of period | (219) | (298) | $ 0 |
Net carrying value at end of period | 1,211 | 674 | |
Fair value of MSRs at end of period | 1,384 | 1,362 | |
Principal balance of loans sold during the year | 79,709 | 2,204 | |
Principal balance of loans serviced for others | 351,759 | 294,093 | |
Custodial escrow balances maintained in connection with loans serviced for others | $ 5,583 | $ 4,596 | |
Key economic assumptions used to estimate the value of the MSRs [Abstract] | |||
Weighted-average contractual life | 21 years 6 months | 20 years 10 months 24 days | |
Weighted-average constant prepayment rate (CPR) | 30.40% | 18.70% | |
Weighted-average discount rate | 2.10% | 3.00% | |
Core Deposit Intangibles [Member] | |||
Identifiable Intangible Assets [Abstract] | |||
Gross carrying amount | $ 69,403 | $ 66,475 | |
Accumulated amortization | (55,572) | (50,057) | |
Net carrying amount | 13,831 | 16,418 | |
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract] | |||
Net carrying amount | 13,831 | 16,418 | |
Other Intangibles [Member] | |||
Identifiable Intangible Assets [Abstract] | |||
Gross carrying amount | 90,462 | 89,266 | |
Accumulated amortization | (51,353) | (42,571) | |
Net carrying amount | 39,109 | 46,695 | |
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract] | |||
Net carrying amount | $ 39,109 | $ 46,695 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
DEPOSITS | ||
Noninterest checking | $ 3,361,768 | $ 2,465,902 |
Interest checking | 2,876,420 | 2,138,348 |
Savings | 1,949,517 | 1,538,203 |
Money market | 2,103,498 | 1,916,385 |
Time | 933,771 | 936,129 |
Total deposits | $ 11,224,974 | $ 8,994,967 |
DEPOSITS - Interest on Deposits
DEPOSITS - Interest on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest on Deposits [Abstract] | |||
Interest on interest checking | $ 2,182 | $ 3,678 | $ 1,796 |
Interest on savings | 665 | 942 | 858 |
Interest on money market | 2,685 | 5,836 | 3,638 |
Interest on time | 11,229 | 10,004 | 4,366 |
Total interest on deposits | $ 16,761 | $ 20,460 | $ 10,658 |
DEPOSITS - Maturities of Time D
DEPOSITS - Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of time deposits [Abstract] | ||
2021 | $ 570,039 | |
2022 | 126,106 | |
2023 | 106,713 | |
2024 | 109,573 | |
2025 | 21,244 | |
Thereafter | 96 | |
Total | 933,771 | $ 936,129 |
Maturities of time deposits, accounts $250,000 or greater [Abstract] | ||
2021 | 140,887 | |
2022 | 7,182 | |
2023 | 6,632 | |
2024 | 22,310 | |
2025 | 2,595 | |
Thereafter | 0 | |
Total | $ 179,606 |
BORROWINGS, Outstanding Borrowi
BORROWINGS, Outstanding Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
BORROWINGS | ||
Overnight FHLB borrowings | $ 0 | $ 8,300 |
Subordinated notes payable, net of premium of $795 and $0, respectively | 3,303 | 13,795 |
Subordinated debt held by unconsolidated subsidiary trusts | 77,320 | 77,320 |
Securities sold under agreement to repurchase, short term | 284,008 | 241,708 |
Other FHLB borrowings | 6,658 | 3,750 |
Total borrowings | 371,289 | 344,873 |
Subordinated notes payable, premium | $ 303 | $ 795 |
BORROWINGS, Contractual Maturit
BORROWINGS, Contractual Maturity on Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instruments [Abstract] | ||
Carrying value | $ 371,289 | $ 344,873 |
Weighted-average rate | 0.76% | |
Weighted-average interest rate on borrowings during period | 1.27% | 1.86% |
January 2, 2021 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 284,008 | |
Weighted-average rate | 0.38% | |
June 14, 2021 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 1,000 | |
Weighted-average rate | 1.59% | |
February 08, 2021 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 675 | |
Weighted-average rate | 1.45% | |
May 17, 2021 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 2,000 | |
Weighted-average rate | 1.68% | |
November 22, 2021 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 1,000 | |
Weighted-average rate | 3.25% | |
February 08, 2023 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 190 | |
Weighted-average rate | 1.79% | |
July 3, 2023 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 523 | |
Weighted-average rate | 2.25% | |
October 23, 2023 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 425 | |
Weighted-average rate | 1.50% | |
October 1, 2025 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 289 | |
Weighted-average rate | 1.50% | |
February 28, 2028 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 3,303 | |
Weighted-average rate | 6.00% | |
March 1, 2029 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 556 | |
Weighted-average rate | 2.50% | |
December 15, 2036 [Member] | ||
Debt Instruments [Abstract] | ||
Carrying value | $ 77,320 | |
Weighted-average rate | 1.87% |
BORROWINGS, Preferred Securitie
BORROWINGS, Preferred Securities (Details) $ in Millions | Sep. 15, 2020USD ($) | Sep. 16, 2019USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2020USD ($)trust |
Mandatorily Redeemable Preferred Securities [Abstract] | ||||
Number of unconsolidated subsidiary business trust owned | trust | 1 | |||
Business Trusts [Member] | ||||
Mandatorily Redeemable Preferred Securities [Abstract] | ||||
Percent ownership of unconsolidated subsidiary trust | 100.00% | |||
MBVT Statutory Trust I [Member] | ||||
Mandatorily Redeemable Preferred Securities [Abstract] | ||||
Redemption of debentures and associated preferred securities | $ 2.1 | |||
Kinderhook Capital Trust [Member] | ||||
Mandatorily Redeemable Preferred Securities [Abstract] | ||||
Redemption of debentures and associated preferred securities | $ 2.1 | $ 20.6 | ||
Community Statutory Trust III [Member] | ||||
Mandatorily Redeemable Preferred Securities [Abstract] | ||||
Redemption of debentures and associated preferred securities | $ 25.2 | |||
Preferred Debt [Member] | Community Capital Trust IV | ||||
Terms of preferred securities for each trust [Abstract] | ||||
Issuance date | Dec. 8, 2006 | |||
Par amount | $ 75 | |||
Effective interest rate | (1.87%) | |||
Maturity date | Dec. 15, 2036 | |||
Call price | Par |
INCOME TAXES, Provision for Inc
INCOME TAXES, Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current [Abstract] | |||
Federal | $ 35,728 | $ 34,804 | $ 32,504 |
State and other | 8,008 | 7,773 | 9,180 |
Deferred [Abstract] | |||
Federal | (2,005) | (699) | 2,122 |
State and other | (331) | (1,603) | 541 |
Provision for income taxes | $ 41,400 | $ 40,275 | $ 44,347 |
INCOME TAXES, Components of Net
INCOME TAXES, Components of Net Deferred Tax Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Components of net deferred tax liability [Abstract] | ||
Allowance for loan losses | $ 15,004 | $ 12,059 |
Employee benefits | 7,552 | 5,393 |
Operating lease liabilities | 8,601 | 9,801 |
Other, net | 900 | 837 |
Deferred tax asset | 32,057 | 28,090 |
Investment securities | 43,325 | 21,547 |
Goodwill and intangibles | 40,802 | 39,189 |
Operating lease right-of-use assets | 8,384 | 9,566 |
Loan origination costs | 7,904 | 7,639 |
Depreciation | 3,089 | 2,736 |
Mortgage servicing rights | 291 | 162 |
Pension | 16,987 | 13,769 |
Deferred tax liability | 120,782 | 94,608 |
Net deferred tax liability | $ (88,725) | $ (66,518) |
INCOME TAXES, Effective Tax Rat
INCOME TAXES, Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective tax rate reconciliation [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Increase (reduction) in taxes resulting from [Abstract] | |||
Tax-exempt interest | (1.50%) | (1.50%) | (1.60%) |
State income taxes, net of federal benefit | 3.00% | 2.50% | 3.40% |
Stock-based compensation | (0.80%) | (1.60%) | (0.90%) |
Federal tax credits | (1.30%) | (1.30%) | (1.40%) |
Other, net | (0.30%) | 0.10% | 0.30% |
Effective income tax rate | 20.10% | 19.20% | 20.80% |
INCOME TAXES, Unrecognized Tax
INCOME TAXES, Unrecognized Tax Benefits and Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized tax benefits [Roll forward] | |||
Unrecognized tax benefits at beginning of year | $ 0 | $ 0 | $ 24 |
Changes related to [Abstract] | |||
Lapse of statutes of limitations | 0 | 0 | (24) |
Unrecognized tax benefits at end of year | $ 0 | $ 0 | $ 0 |
LIMITS ON DIVIDENDS AND OTHER_2
LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES (Details) $ in Millions | Dec. 31, 2020USD ($) |
LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES | |
Undivided profits legally available for the payments of dividends | $ 110.7 |
Percentage of Bank's capital and surplus that can be transferred to Company, maximum | 10.00% |
Aggregate percentage of Bank's capital and surplus that can be transferred to Company, maximum | 20.00% |
BENEFIT PLANS - Funded Status a
BENEFIT PLANS - Funded Status and Amounts Recognized in Balance Sheets and AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2009 | Jun. 01, 2018 | |
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | $ 1,400 | ||||
Amounts recognized in accumulated other comprehensive loss/(income) ("AOCI") [Abstract] | |||||
AOCI at year end | 28,873 | $ 34,882 | $ 32,837 | ||
Accumulated other comprehensive income (loss), negative postretirement medical plan amendment, arising during period, net of tax | $ 3,500 | ||||
Additional unamortized actuarial gain | 1,100 | ||||
Director's Stock Balance Plan [Member] | Directors [Member] | |||||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at the beginning of year | 100 | ||||
Benefit obligation at end of year | 100 | 100 | |||
Pension Benefits [Member] | |||||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at the beginning of year | 162,084 | 144,211 | |||
Service cost | 5,750 | 5,081 | 4,561 | ||
Interest cost | 5,657 | 6,264 | 5,676 | ||
Plan amendment / acquisition | 13,598 | 0 | |||
Participant contributions | 0 | 0 | |||
Deferred actuarial (gain)/loss | 13,954 | 16,292 | |||
Benefits paid | (10,682) | (9,764) | |||
Benefit obligation at end of year | 190,361 | 162,084 | 144,211 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 227,323 | 203,672 | |||
Actual return of plan assets | 33,543 | 25,522 | |||
Participant contributions | 0 | 0 | |||
Employer contributions | 7,993 | 7,893 | |||
Plan acquisition | 14,423 | 0 | |||
Benefits paid | (10,682) | (9,764) | |||
Fair value of plan assets at end of year | 272,600 | 227,323 | 203,672 | ||
Over/(Under) funded status at year end | 82,239 | 65,239 | |||
Amounts recognized in the consolidated statement of condition [Abstract] | |||||
Other assets | 101,849 | 81,930 | |||
Other liabilities | (19,610) | (16,691) | |||
Amounts recognized in accumulated other comprehensive loss/(income) ("AOCI") [Abstract] | |||||
Net loss | 34,290 | 42,743 | |||
Net prior service cost (credit) | 4,348 | 4,056 | |||
Pre-tax AOCI | 38,638 | 46,799 | |||
Taxes | (9,488) | (11,448) | |||
AOCI at year end | 29,150 | 35,351 | |||
Pension Benefits [Member] | Unfunded Plan Member | |||||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 3,500 | ||||
Pension Benefits [Member] | Nonqualified Plan [Member] | Unfunded Plan Member | |||||
Change in plan assets [Roll Forward] | |||||
Employer contributions | 3,900 | 7,300 | |||
Pension Benefits [Member] | Restoration Plan [Member] | Nonqualified Plan [Member] | Unfunded Plan Member | |||||
Amounts recognized in accumulated other comprehensive loss/(income) ("AOCI") [Abstract] | |||||
Initial projected benefit obligation | 30 | 300 | $ 800 | ||
Post-retirement Benefits [Member] | |||||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at the beginning of year | 1,677 | 1,657 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 57 | 70 | 69 | ||
Plan amendment / acquisition | 0 | 0 | |||
Participant contributions | 0 | 35 | |||
Deferred actuarial (gain)/loss | 114 | 87 | |||
Benefits paid | (130) | (172) | |||
Benefit obligation at end of year | 1,718 | 1,677 | 1,657 | ||
Change in plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Actual return of plan assets | 0 | 0 | |||
Participant contributions | 0 | 35 | |||
Employer contributions | 130 | 137 | |||
Plan acquisition | 0 | 0 | |||
Benefits paid | (130) | (172) | |||
Fair value of plan assets at end of year | 0 | 0 | $ 0 | ||
Over/(Under) funded status at year end | (1,718) | (1,677) | |||
Amounts recognized in the consolidated statement of condition [Abstract] | |||||
Other assets | 0 | 0 | |||
Other liabilities | (1,718) | (1,677) | |||
Amounts recognized in accumulated other comprehensive loss/(income) ("AOCI") [Abstract] | |||||
Net loss | 715 | 641 | |||
Net prior service cost (credit) | (1,086) | (1,265) | |||
Pre-tax AOCI | (371) | (624) | |||
Taxes | 94 | 155 | |||
AOCI at year end | $ (277) | (469) | |||
Supplemental Pension Plans [Member] | Key Executives [Member] | |||||
Pension Plan [Abstract] | |||||
Defined Benefit Plan, Funding Status [Extensible List] | us-gaap:UnfundedPlanMember | ||||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at the beginning of year | $ 16,400 | ||||
Benefit obligation at end of year | 19,600 | 16,400 | |||
Amounts recognized in accumulated other comprehensive loss/(income) ("AOCI") [Abstract] | |||||
Benefit obligation for defined benefit pension plan prior to plan revaluation | $ 170,800 | $ 145,400 |
BENEFIT PLANS - Amounts Recogni
BENEFIT PLANS - Amounts Recognized in AOCI, Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amounts recognized in AOCI, net of tax [Abstract] | |||
Total | $ (6,009) | $ 2,045 | $ 11,204 |
Pension Benefits [Member] | |||
Amounts recognized in AOCI, net of tax [Abstract] | |||
Prior service cost/(credit) | 222 | (49) | |
Net (gain) loss | (6,423) | 1,920 | |
Total | (6,201) | 1,871 | |
Post-retirement Benefits [Member] | |||
Amounts recognized in AOCI, net of tax [Abstract] | |||
Prior service cost/(credit) | 136 | 136 | |
Net (gain) loss | 56 | 38 | |
Total | $ 192 | $ 174 |
BENEFIT PLANS - Costs That Will
BENEFIT PLANS - Costs That Will Be Amortized from AOCI in Next Fiscal Year (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Pension Benefits [Member] | |
Costs that will be amortized from accumulated other comprehensive (income) loss in net periodic (income) cost in next fiscal year [Abstract] | |
Prior service credit | $ 379 |
Net loss | 3,560 |
Total | 3,939 |
Post-retirement Benefits [Member] | |
Costs that will be amortized from accumulated other comprehensive (income) loss in net periodic (income) cost in next fiscal year [Abstract] | |
Prior service credit | (179) |
Net loss | 48 |
Total | $ (131) |
BENEFIT PLANS - Weighted-averag
BENEFIT PLANS - Weighted-average Assumptions Used to Determine Benefit Obligations (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits [Member] | ||
Weighed average assumption used in calculating benefit obligations [Abstract] | ||
Discount rate | 2.80% | 3.50% |
Expected return on plan assets | 7.00% | 7.00% |
Rate of compensation increase | 3.50% | 3.50% |
Post-retirement Benefits [Member] | ||
Weighed average assumption used in calculating benefit obligations [Abstract] | ||
Discount rate | 2.80% | 3.60% |
BENEFIT PLANS - Net Periodic Be
BENEFIT PLANS - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Prior service costs [Abstract] | |||
Maximum percentage of net gain or loss over the greater of the projected benefit obligation or the market-related value of assets without requiring amortization | 10.00% | ||
Pension Benefits [Member] | |||
Net periodic benefit cost [Abstract] | |||
Service cost | $ 5,750 | $ 5,081 | $ 4,561 |
Interest cost | 5,657 | 6,264 | 5,676 |
Expected return on plan assets | (16,306) | (14,311) | (14,820) |
Plan amendment | (637) | 0 | 13 |
Amortization of unrecognized net loss/(gain) | 3,239 | 2,568 | 1,193 |
Amortization of prior service cost | 241 | 64 | (293) |
Net periodic (benefit) | (2,056) | (334) | (3,670) |
Post-retirement Benefits [Member] | |||
Net periodic benefit cost [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 57 | 70 | 69 |
Expected return on plan assets | 0 | 0 | 0 |
Plan amendment | 0 | 0 | 0 |
Amortization of unrecognized net loss/(gain) | 40 | 38 | 21 |
Amortization of prior service cost | (179) | (179) | (179) |
Net periodic (benefit) | $ (82) | $ (71) | $ (89) |
BENEFIT PLANS - Weighted-aver_2
BENEFIT PLANS - Weighted-average Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits [Member] | |||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.50% | 4.50% | 4.00% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Post-retirement Benefits [Member] | |||
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.60% | 4.45% | 4.00% |
BENEFIT PLANS - Estimated Futur
BENEFIT PLANS - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Pension Benefits [Member] | |
Estimated Future Benefit Payments [Abstract] | |
2021 | $ 10,588 |
2022 | 11,061 |
2023 | 12,004 |
2024 | 12,404 |
2025 | 12,238 |
2026-2030 | 64,468 |
Post-retirement Benefits [Member] | |
Estimated Future Benefit Payments [Abstract] | |
2021 | 174 |
2022 | 130 |
2023 | 128 |
2024 | 125 |
2025 | 122 |
2026-2030 | $ 560 |
BENEFIT PLANS - Target Plan Ass
BENEFIT PLANS - Target Plan Assets Allocation (Details) | Dec. 31, 2020 |
Equity Securities [Member] | |
Plan Assets [Abstract] | |
Target allocation percentage of assets | 60.00% |
Fixed Income Securities [Member] | |
Plan Assets [Abstract] | |
Target allocation percentage of assets | 40.00% |
BENEFIT PLANS - Fair Value of P
BENEFIT PLANS - Fair Value of Plan Assets by Assets Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | $ 1,400 | |||
Total [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [1] | 270,953 | $ 226,835 | |
Total [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [1] | 258,483 | 213,037 | |
Total [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [1] | 12,470 | 13,798 | |
Total [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Money Market Accounts / Cash Equivalents [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 68,137 | 3,983 | ||
Money Market Accounts / Cash Equivalents [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 68,137 | 3,983 | ||
Money Market Accounts / Cash Equivalents [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Money Market Accounts / Cash Equivalents [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Equity Securities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 143,779 | 103,026 | ||
Equity Securities [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 137,691 | 97,651 | ||
Equity Securities [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 6,088 | 5,375 | ||
Equity Securities [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. Large-Cap [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 69,195 | 50,301 | ||
U.S. Large-Cap [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 69,195 | 50,301 | ||
U.S. Large-Cap [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. Large-Cap [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S Mid/Small Cap [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 17,338 | 10,408 | ||
U.S Mid/Small Cap [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 17,338 | 10,408 | ||
U.S Mid/Small Cap [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S Mid/Small Cap [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
CBU Stock [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 7,701 | 6,522 | ||
CBU Stock [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 7,701 | 6,522 | ||
CBU Stock [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
CBU Stock [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
International [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 49,545 | 35,795 | ||
International [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 43,457 | 30,420 | ||
International [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 6,088 | 5,375 | ||
International [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Fixed Income Securities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 41,424 | 100,256 | ||
Fixed Income Securities [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 35,042 | 91,915 | ||
Fixed Income Securities [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 6,382 | 8,341 | ||
Fixed Income Securities [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. Treasury and Agency Securities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 12,395 | 82,039 | ||
U.S. Treasury and Agency Securities [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 6,154 | 73,698 | ||
U.S. Treasury and Agency Securities [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 6,241 | 8,341 | ||
U.S. Treasury and Agency Securities [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Investment Grade Bonds [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 23,226 | 12,938 | ||
Investment Grade Bonds [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 23,085 | 12,938 | ||
Investment Grade Bonds [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 141 | 0 | ||
Investment Grade Bonds [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
High Yield [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [2] | 5,803 | 5,279 | |
High Yield [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [2] | 5,803 | 5,279 | |
High Yield [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
High Yield [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Other Investments [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [3] | 17,613 | 19,570 | |
Other Investments [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [3] | 17,613 | 19,488 | |
Other Investments [Member] | Significant Observable Inputs, Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [3] | 0 | 82 | |
Other Investments [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Dividends and Interest Receivable [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 200 | 500 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 272,600 | 227,323 | $ 203,672 | |
Pension Plans [Abstract] | ||||
Contribution made to defined benefit pension plan by employer | 7,993 | 7,893 | ||
Pension Benefits [Member] | Unfunded Plan Member | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 3,500 | |||
Pension Benefits [Member] | Nonqualified Plan [Member] | Unfunded Plan Member | ||||
Pension Plans [Abstract] | ||||
Contribution made to defined benefit pension plan by employer | $ 3,900 | $ 7,300 | ||
[1] | Excludes dividends and interest receivable totaling $0.2 million and $0.5 million at December 31, 2020 and 2019, respectively. | |||
[2] | This category is exchange-traded funds representing a diversified index of high yield corporate bonds. | |||
[3] | This category is comprised of exchange-traded funds and mutual funds holding non-traditional investment classes including private equity funds and alternative exchange funds. |
BENEFIT PLANS - 401(K) Employee
BENEFIT PLANS - 401(K) Employee Stock Ownership Plan (Details) - 401(k) Employee Stock Ownership Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of first eligible compensation fully matched by employer | 3.00% | ||
Percentage of matching contribution in the form of common stock | 100.00% | ||
Percentage of the next eligible compensation matched at 50% by employer | 3.00% | ||
Percentage of matching contributions for the next eligible compensation in the form of company stock | 50.00% | ||
(Income)/expense recognized under plan | $ 6.3 | $ 6.1 | $ 5.9 |
Interest credit contribution expense recognized for 401(k) plan | $ 0.9 | $ 1.1 | $ 0.9 |
Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Contribution from eligible compensation | 1.00% | ||
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Contribution from eligible compensation | 90.00% |
BENEFIT PLANS - Other Deferred
BENEFIT PLANS - Other Deferred Compensation Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation arrangements (161,457 shares at December 31, 2020 and 179,548 shares at December 31, 2019) | $ 9,127 | $ 10,120 | |
Other Deferred Compensation Arrangements [Member] | |||
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation arrangements (161,457 shares at December 31, 2020 and 179,548 shares at December 31, 2019) | 5,400 | 2,600 | |
Expense recognized under plan | $ 400 | $ 200 | $ 80 |
BENEFIT PLANS - Deferred Compen
BENEFIT PLANS - Deferred Compensation Plans for Directors (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation Arrangements [Abstract] | |||
Liability accrued for compensation plan | $ 9,127 | $ 10,120 | |
Deferred Compensation Plans for Directors [Member] | Directors [Member] | |||
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation arrangement with individual, shares credited (in shares) | 141,655 | 151,519 | |
Liability accrued for compensation plan | $ 4,800 | $ 4,900 | |
Expense recognized under plan | $ 200 | $ 200 | $ 200 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Long-Term Incentive Program (Details) - shares | May 17, 2017 | May 14, 2014 | May 25, 2011 | Dec. 31, 2020 |
Share-based Arrangements with Employees and Nonemployees | ||||
Shares of common stock authorized for stock-based compensation plan (in shares) | 4,000,000 | |||
Additional shares of common stock authorized for stock-based compensation plan (in shares) | 1,000,000 | 1,000,000 | 900,000 | |
Number of shares available for grant (in shares) | 800,000 | |||
Stock Options [Member] | ||||
Share-based Arrangements with Employees and Nonemployees | ||||
Term of options | 10 years | |||
Award vesting period | 5 years | |||
Director's Stock Balance Plan [Member] | Nonqualified Stock Option [Member] | ||||
Share-based Arrangements with Employees and Nonemployees | ||||
Term of options | 1 year | |||
Term of options in event of death | 2 years |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Activity in Long-Term Incentive Program (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 1,502,994 | 1,644,361 |
Granted (in shares) | 254,496 | 199,110 |
Exercised (in shares) | (197,564) | (331,315) |
Forfeited (in shares) | (17,667) | (9,162) |
Outstanding, end of period (in shares) | 1,542,259 | 1,502,994 |
Exercisable, end of period (in shares) | 978,833 | |
Weighted-average exercise price of shares [Abstract] | ||
Outstanding, beginning of period (in dollars per share) | $ 42.82 | $ 38.36 |
Granted (in dollars per share) | 51.68 | 59.41 |
Exercised (in dollars per share) | 32.65 | 30.42 |
Forfeited (in dollars per share) | 50.97 | 51.29 |
Outstanding, end of period (in dollars per share) | 45.49 | $ 42.82 |
Exercisable, end of period (in dollars per share) | $ 40.77 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Summary of Stock Options Outstanding (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Options [Abstract] | |
Options outstanding, shares (in shares) | shares | 1,542,259 |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 45.49 |
Options outstanding, weighted-average remaining life | 5 years 11 months 8 days |
Options exercisable, shares (in shares) | shares | 978,833 |
Options exercisable, weighted-average exercise price (in dollars per share) | $ 40.77 |
Weighted-average remaining contractual term of outstanding stock options | 5 years 11 months 8 days |
Weighted-average remaining contractual term of outstanding and exercisable stock options | 4 years 8 months 26 days |
Aggregate intrinsic value of outstanding stock options | $ | $ 25.9 |
Aggregate intrinsic value of exercisable stock options | $ | $ 21.1 |
$0.00 - $28.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Exercise price range, lower range limit (in dollars per share) | $ 0 |
Exercise price range, upper range limit (in dollars per share) | $ 28 |
Options [Abstract] | |
Options outstanding, shares (in shares) | shares | 50,619 |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 23.95 |
Options outstanding, weighted-average remaining life | 4 years 9 months |
Options exercisable, shares (in shares) | shares | 50,619 |
Options exercisable, weighted-average exercise price (in dollars per share) | $ 23.95 |
$28.001 - $29.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Exercise price range, lower range limit (in dollars per share) | 28.001 |
Exercise price range, upper range limit (in dollars per share) | $ 29 |
Options [Abstract] | |
Options outstanding, shares (in shares) | shares | 52,014 |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 28.78 |
Options outstanding, weighted-average remaining life | 1 year 2 months 19 days |
Options exercisable, shares (in shares) | shares | 52,014 |
Options exercisable, weighted-average exercise price (in dollars per share) | $ 28.78 |
$29.001 - $30.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Exercise price range, lower range limit (in dollars per share) | 29.001 |
Exercise price range, upper range limit (in dollars per share) | $ 30 |
Options [Abstract] | |
Options outstanding, shares (in shares) | shares | 104,045 |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 29.79 |
Options outstanding, weighted-average remaining life | 2 years 2 months 15 days |
Options exercisable, shares (in shares) | shares | 104,045 |
Options exercisable, weighted-average exercise price (in dollars per share) | $ 29.79 |
$30.001 - $40.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Exercise price range, lower range limit (in dollars per share) | 30.001 |
Exercise price range, upper range limit (in dollars per share) | $ 40 |
Options [Abstract] | |
Options outstanding, shares (in shares) | shares | 536,831 |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 37.12 |
Options outstanding, weighted-average remaining life | 4 years 4 months 13 days |
Options exercisable, shares (in shares) | shares | 493,761 |
Options exercisable, weighted-average exercise price (in dollars per share) | $ 37.04 |
$40.001 - $60.00 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Exercise price range, lower range limit (in dollars per share) | 40.001 |
Exercise price range, upper range limit (in dollars per share) | $ 60 |
Options [Abstract] | |
Options outstanding, shares (in shares) | shares | 798,750 |
Options outstanding, weighted-average exercise price (in dollars per share) | $ 55.61 |
Options outstanding, weighted-average remaining life | 7 years 10 months 9 days |
Options exercisable, shares (in shares) | shares | 278,394 |
Options exercisable, weighted-average exercise price (in dollars per share) | $ 56.78 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Stock-Based Compensation Expense Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options [Member] | |||
Compensation Related Costs [Abstract] | |||
Stock-based compensation expense related to incentive and non-qualified stock options recognized | $ 2.7 | $ 2.2 | $ 2.6 |
Income tax benefit recognized | 0.7 | 0.5 | 0.6 |
Restricted Stock [Member] | |||
Compensation Related Costs [Abstract] | |||
Stock-based compensation expense related to incentive and non-qualified stock options recognized | $ 3.3 | $ 2.8 | $ 3.2 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS - Assumptions Used to Estimate Value of Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
STOCK-BASED COMPENSATION PLANS | |||
Fair value assumptions, method used | Black-Scholes option-pricing model | ||
Weighted-average Fair Value of Options Granted (in dollars per share) | $ 10.86 | $ 14.16 | $ 13.44 |
Assumptions [Abstract] | |||
Weighted-average expected life | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Future dividend yield | 2.57% | 2.73% | 2.91% |
Share price volatility | 29.29% | 29.31% | 29.44% |
Weighted-average risk-free interest rate | 0.67% | 2.44% | 2.82% |
STOCK-BASED COMPENSATION PLAN_7
STOCK-BASED COMPENSATION PLANS - Unrecognized Stock-Based Compensation Expense and Stock Option Exercises (Details) - Stock Options [Member] - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized Stock-Based Compensation Expense and Stock Option Exercises | |||
Unrecognized stock-based compensation expense related to non-vested stock options | $ 5 | ||
Weighted average period for recognition of unrecognized compensation cost | 3 years 2 months 12 days | ||
Total fair value of stock options vested | $ 2.5 | $ 2.4 | $ 2.3 |
Proceeds from stock option exercises | 7.5 | 11.3 | |
Related tax benefits from stock option exercises | $ 1.2 | $ 2.3 | |
Shares issued in connection with stock option exercise (in shares) | 0.2 | 0.3 | |
Total intrinsic value of options exercised | $ 6.6 | $ 11.6 | $ 8.4 |
STOCK-BASED COMPENSATION PLAN_8
STOCK-BASED COMPENSATION PLANS - Activity of Unvested Restricted Stock Awards (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Shares [Roll Forward] | |||
Unvested, beginning of period (in shares) | 196,788 | 221,063 | |
Awards (in shares) | 52,132 | 108,556 | |
Forfeitures (in shares) | (12,884) | (2,365) | |
Vestings (in shares) | (59,628) | (130,466) | |
Unvested, end of period (in shares) | 176,408 | 196,788 | 221,063 |
Weighted-average grant date fair value [Abstract] | |||
Unvested, beginning of period (in dollars per share) | $ 45.58 | $ 37.72 | |
Awards (in dollars per share) | 51.64 | 42.53 | |
Forfeitures (in dollars per share) | 37.14 | 52.47 | |
Vestings (in dollars per share) | 47.80 | 29.71 | |
Unvested, end of period (in dollars per share) | $ 47.24 | $ 45.58 | $ 37.72 |
Unrecognized stock-based compensation expense | $ 6.1 | ||
Award vesting period | 5 years | ||
Weighted-average period for recognition of unrecognized compensation cost | 4 years 2 months 12 days | ||
Total fair value of restricted stock vested | $ 2.9 | $ 3.8 | $ 2.3 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
EARNINGS PER SHARE | |||
Weighted-average anti-dilutive stock options outstanding (in shares) | 600,000 | 500,000 | 400,000 |
Basic earnings per share [Abstract] | |||
Net income | $ 164,676 | $ 169,063 | $ 168,641 |
Income attributable to unvested stock-based compensation awards | (514) | (400) | (744) |
Income available to common shareholders | $ 164,162 | $ 168,663 | $ 167,897 |
Weighted-average common shares outstanding - basic (in shares) | 52,969,000 | 51,732,000 | 51,165,000 |
Basic earnings per share (in dollars per share) | $ 3.10 | $ 3.26 | $ 3.28 |
Diluted earnings per share [Abstract] | |||
Net income | $ 164,676 | $ 169,063 | $ 168,641 |
Income attributable to unvested stock-based compensation awards | (514) | (400) | (744) |
Income available to common shareholders | $ 164,162 | $ 168,663 | $ 167,897 |
Weighted-average common shares outstanding (in shares) | 52,969,000 | 51,732,000 | 51,165,000 |
Assumed exercise of stock options (in shares) | 352,000 | 516,000 | 583,000 |
Weighted-average common shares outstanding - diluted (in shares) | 53,321,000 | 52,248,000 | 51,748,000 |
Diluted earnings per share (in dollars per share) | $ 3.08 | $ 3.23 | $ 3.24 |
Cash dividends declared per share (in dollars per share) | $ 1.66 | $ 1.58 | $ 1.44 |
Stock Repurchase Program [Abstract] | |||
Number of common shares authorized to be repurchased (in shares) | 2,600,000 | 2,680,000 | |
Number of common shares repurchased (in shares) | 0 |
COMMITMENTS, CONTINGENT LIABI_3
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingency, Estimate [Abstract] | |||
Contract amount of commitments and contingencies | $ 1,352,781 | $ 1,181,652 | |
Unused lines of credit | 25,000 | ||
Federal Home Loan Bank unused borrowing capacity | 1,660,000 | ||
Federal Reserve unused borrowing capacity | 256,200 | ||
Litigation accrual | 2,950 | 0 | $ 0 |
Minimum [Member] | |||
Loss Contingency, Estimate [Abstract] | |||
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability | 0 | ||
Maximum [Member] | |||
Loss Contingency, Estimate [Abstract] | |||
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability | 1,000 | ||
Commitments to Extend Credit [Member] | |||
Loss Contingency, Estimate [Abstract] | |||
Contract amount of commitments and contingencies | 1,313,568 | 1,143,780 | |
Standby Letters of Credit [Member] | |||
Loss Contingency, Estimate [Abstract] | |||
Contract amount of commitments and contingencies | $ 39,213 | $ 37,872 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leases [Abstract] | |||
Term of option to terminate | 1 year | ||
Components of Lease Expense [Abstract] | |||
Operating lease cost | $ 9,000 | $ 8,724 | |
Variable lease cost | 53 | 18 | |
Short-term lease cost | 369 | 240 | |
Total lease cost | 9,422 | 8,982 | |
Rental expense | $ 9,000 | ||
Cash paid for amounts included in the measurement of lease liabilities [Abstract] | |||
Operating cash outflows for operating leases | 8,478 | 7,938 | |
Right-of-use assets obtained in exchange for lease obligations [Abstract] | |||
Operating leases | 3,519 | 14,145 | |
Operating leases [Abstract] | |||
Operating lease right-of-use assets | $ 34,908 | 39,895 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | ||
Operating lease liabilities | $ 35,857 | $ 40,913 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiability | us-gaap:OperatingLeaseLiability | |
Weighted average remaining lease term [Abstract] | |||
Operating leases | 6 years 1 month 6 days | 6 years 7 months 6 days | |
Weighted average discount rate [Abstract] | |||
Operating leases | 2.82% | 2.95% | |
Minimum [Member] | |||
Operating Leases [Abstract] | |||
Remaining term of lease | 1 year | ||
Term of option to extend | 1 year | ||
Maximum [Member] | |||
Operating Leases [Abstract] | |||
Remaining term of lease | 14 years | ||
Term of option to extend | 40 years |
LEASES, Maturities of Lease Lia
LEASES, Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of Lease Liabilities [Abstract] | ||
2021 | $ 8,697 | $ 9,396 |
2022 | 7,505 | 7,952 |
2023 | 6,336 | 6,664 |
2024 | 4,973 | 5,695 |
2025 | 3,688 | 4,565 |
Thereafter | 8,222 | 11,150 |
Total lease payments | 39,421 | 45,422 |
Less imputed interest | (3,564) | (4,509) |
Total | 35,857 | 40,913 |
Operating lease right-of-use assets | $ 34,908 | $ 39,895 |
Weighted average remaining lease term operating lease | 6 years 1 month 6 days | 6 years 7 months 6 days |
Weighted average discount rate operating lease | 2.82% | 2.95% |
706 North Clinton [Member] | ||
Maturities of Lease Liabilities [Abstract] | ||
2021 | $ 591 | $ 591 |
2022 | 591 | 591 |
2023 | 591 | 591 |
2024 | 591 | 591 |
2025 | 605 | 591 |
Thereafter | 2,341 | 2,946 |
Total lease payments | 5,310 | 5,901 |
Less imputed interest | (791) | (964) |
Total | $ 4,519 | 4,937 |
Membership interest | 50.00% | |
Operating lease right-of-use assets | $ 4,500 | $ 4,900 |
Weighted average remaining lease term operating lease | 9 years | 10 years |
Weighted average discount rate operating lease | 3.68% | 3.67% |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Tier 1 Leverage ratio [Abstract] | ||
Required capital conservation ratio | 2.50% | |
Tier 1 Leverage ratio, actual amount | $ 1,314,864 | $ 1,148,336 |
Tier 1 Leverage ratio, actual ratio | 10.16 | 10.80 |
Tier 1 leverage ratio for capital adequacy purposes, amount | $ 517,736 | $ 425,431 |
Tier 1 leverage ratio for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage capital to be well-capitalized under prompt corrective action, amount | $ 647,169 | $ 531,788 |
Tier 1 leverage capital to be well-capitalized under prompt corrective action, ratio | 5 | 5 |
Tier 1 risk-based capital [Abstract] | ||
Tier 1 risk-based capital, actual amount | $ 1,314,864 | $ 1,148,336 |
Tier 1 risk-based capital, actual ratio | 18.99 | 17.23 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 415,472 | $ 399,834 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 6 | 6 |
Tier 1 risk-based capital for capital adequacy purposes plus capital conservation buffer, amount | $ 588,585 | $ 566,432 |
Tier 1 risk-based capital for capital adequacy purposes plus capital conservation buffer, ratio | 8.50% | 8.50% |
Tier 1 risk based capital to be well-capitalized under prompt corrective action, amount | $ 553,962 | $ 533,112 |
Tier 1 risk-based capital to be well-capitalized under prompt corrective action, ratio | 8 | 8 |
Total risk-based capital [Abstract] | ||
Total risk-based capital, actual amount | $ 1,375,704 | $ 1,198,724 |
Total risk-based capital, actual ratio | 19.87 | 17.99 |
Total risk-based capital for capital adequacy purposes, amount | $ 553,962 | $ 533,112 |
Total risk-based capita for capital adequacy purposes, ratio | 8 | 8 |
Total risk-based capital for capital adequacy purposes plus capital conservation buffer, amount | $ 727,075 | $ 699,710 |
Total risk-based capita for capital adequacy purposes plus capital conservation buffer, ratio | 10.50% | 10.50% |
Total risk based capital to be well-capitalized under prompt corrective action, amount | $ 692,453 | $ 666,390 |
Total risk based capital to be well-capitalized under prompt corrective action, ratio | 10 | 10 |
Common equity Tier 1 capital [Abstract] | ||
Common equity Tier 1 capital, actual amount | $ 1,239,754 | $ 1,073,281 |
Common equity Tier 1 capital, actual ratio | 17.90 | 16.11 |
Common equity Tier 1 capital for capital adequacy purposes, amount | $ 311,604 | $ 299,876 |
Common equity Tier 1 capital for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 capital for capital adequacy purposes plus capital conservation buffer, amount | $ 484,717 | $ 466,473 |
Common equity Tier 1 capital for capital adequacy purposes plus capital conservation buffer, ratio | 7.00% | 7.00% |
Common equity Tier 1 capital to be well-capitalized under prompt corrective action, amount | $ 450,094 | $ 433,154 |
Common equity Tier 1 capital to be well-capitalized under prompt corrective action, ratio | 6.50% | 6.50% |
Community Bank, N.A. [Member] | ||
Tier 1 Leverage ratio [Abstract] | ||
Tier 1 Leverage ratio, actual amount | $ 1,028,285 | $ 910,364 |
Tier 1 Leverage ratio, actual ratio | 7.98 | 8.61 |
Tier 1 leverage ratio for capital adequacy purposes, amount | $ 515,552 | $ 422,882 |
Tier 1 leverage ratio for capital adequacy purposes, ratio | 4 | 4 |
Tier 1 leverage capital to be well-capitalized under prompt corrective action, amount | $ 644,440 | $ 528,603 |
Tier 1 leverage capital to be well-capitalized under prompt corrective action, ratio | 5 | 5 |
Tier 1 risk-based capital [Abstract] | ||
Tier 1 risk-based capital, actual amount | $ 1,028,285 | $ 910,364 |
Tier 1 risk-based capital, actual ratio | 14.98 | 13.79 |
Tier 1 risk-based capital for capital adequacy purposes, amount | $ 411,880 | $ 396,064 |
Tier 1 risk-based capital for capital adequacy purposes, ratio | 6 | 6 |
Tier 1 risk-based capital for capital adequacy purposes plus capital conservation buffer, amount | $ 583,497 | $ 561,091 |
Tier 1 risk-based capital for capital adequacy purposes plus capital conservation buffer, ratio | 8.50% | 8.50% |
Tier 1 risk based capital to be well-capitalized under prompt corrective action, amount | $ 549,174 | $ 528,086 |
Tier 1 risk-based capital to be well-capitalized under prompt corrective action, ratio | 8 | 8 |
Total risk-based capital [Abstract] | ||
Total risk-based capital, actual amount | $ 1,089,125 | $ 960,752 |
Total risk-based capital, actual ratio | 15.87 | 14.55 |
Total risk-based capital for capital adequacy purposes, amount | $ 549,174 | $ 528,086 |
Total risk-based capita for capital adequacy purposes, ratio | 8 | 8 |
Total risk-based capital for capital adequacy purposes plus capital conservation buffer, amount | $ 720,791 | $ 693,113 |
Total risk-based capita for capital adequacy purposes plus capital conservation buffer, ratio | 10.50% | 10.50% |
Total risk based capital to be well-capitalized under prompt corrective action, amount | $ 686,467 | $ 660,107 |
Total risk based capital to be well-capitalized under prompt corrective action, ratio | 10 | 10 |
Common equity Tier 1 capital [Abstract] | ||
Common equity Tier 1 capital, actual amount | $ 1,028,175 | $ 910,309 |
Common equity Tier 1 capital, actual ratio | 14.98 | 13.79 |
Common equity Tier 1 capital for capital adequacy purposes, amount | $ 308,910 | $ 297,048 |
Common equity Tier 1 capital for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity Tier 1 capital for capital adequacy purposes plus capital conservation buffer, amount | $ 480,527 | $ 462,075 |
Common equity Tier 1 capital for capital adequacy purposes plus capital conservation buffer, ratio | 7.00% | 7.00% |
Common equity Tier 1 capital to be well-capitalized under prompt corrective action, amount | $ 446,204 | $ 429,070 |
Common equity Tier 1 capital to be well-capitalized under prompt corrective action, ratio | 6.50% | 6.50% |
PARENT COMPANY STATEMENTS, Cond
PARENT COMPANY STATEMENTS, Condensed Statements of Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and cash equivalents | $ 1,645,805 | $ 205,030 | $ 211,834 | $ 221,038 |
Investment in and advances to: | ||||
Other assets | 281,903 | 243,082 | ||
Total assets | 13,931,094 | 11,410,295 | 10,607,295 | |
Liabilities and shareholders' equity: | ||||
Accrued interest and other liabilities | 230,724 | 215,221 | ||
Borrowings | 77,320 | 77,320 | ||
Shareholders' equity | 2,104,107 | 1,855,234 | 1,713,783 | 1,635,315 |
Total liabilities and shareholders' equity | 13,931,094 | 11,410,295 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 196,021 | 180,663 | $ 116,133 | $ 84,460 |
Investment securities | 6,043 | 2,853 | ||
Investment in and advances to: | ||||
Bank subsidiary | 1,802,150 | 1,594,790 | ||
Non-bank subsidiaries | 196,090 | 180,487 | ||
Other assets | 15,290 | 12,406 | ||
Total assets | 2,215,594 | 1,971,199 | ||
Liabilities and shareholders' equity: | ||||
Accrued interest and other liabilities | 30,864 | 24,850 | ||
Borrowings | 80,623 | 91,115 | ||
Shareholders' equity | 2,104,107 | 1,855,234 | ||
Total liabilities and shareholders' equity | $ 2,215,594 | $ 1,971,199 |
PARENT COMPANY STATEMENTS, Co_2
PARENT COMPANY STATEMENTS, Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses: | |||
Interest on borrowings | $ 1,875 | $ 3,898 | $ 4,677 |
Acquisition expenses | 4,933 | 8,608 | (769) |
(Gain)/loss on debt extinguishment | (421) | 0 | 318 |
Other expenses | 18,415 | 24,090 | 21,471 |
Income before tax benefit and equity in undistributed net income of subsidiaries | 206,076 | 209,338 | 212,988 |
Income tax benefit | (41,400) | (40,275) | (44,347) |
Net income | 164,676 | 169,063 | 168,641 |
Other comprehensive income/(loss), net of tax: | |||
Changes in other comprehensive (loss)/income related to pension and other post retirement obligations | 6,009 | (2,045) | (11,204) |
Changes in other comprehensive income/(loss) related to unrealized losses on available-for-sale securities | 66,294 | 37,124 | (30,402) |
Other comprehensive income/(loss) | 72,303 | 35,079 | (41,398) |
Comprehensive income | 236,979 | 204,142 | 127,035 |
Parent Company [Member] | |||
Dividends from subsidiaries: | |||
Bank subsidiary | 105,000 | 115,000 | 98,000 |
Non-bank subsidiaries | 13,500 | 27,600 | 9,250 |
Interest and dividends on investments | 168 | 134 | 161 |
Total revenues | 118,668 | 142,734 | 107,411 |
Expenses: | |||
Interest on borrowings | 2,546 | 4,244 | 4,677 |
Acquisition expenses | 450 | 1,248 | 0 |
(Gain)/loss on debt extinguishment | (421) | 0 | 318 |
Other expenses | 4,945 | 477 | 131 |
Total expenses | 7,520 | 5,969 | 5,126 |
Income before tax benefit and equity in undistributed net income of subsidiaries | 111,148 | 136,765 | 102,285 |
Income tax benefit | 3,739 | 4,545 | 1,330 |
Income before equity in undistributed net income of subsidiaries | 114,887 | 141,310 | 103,615 |
Equity in undistributed net income of subsidiaries | 49,789 | 27,753 | 65,026 |
Net income | 164,676 | 169,063 | 168,641 |
Other comprehensive income/(loss), net of tax: | |||
Changes in other comprehensive (loss)/income related to pension and other post retirement obligations | 6,009 | (2,045) | (11,204) |
Changes in other comprehensive income/(loss) related to unrealized losses on available-for-sale securities | 66,294 | 37,124 | (30,402) |
Other comprehensive income/(loss) | 72,303 | 35,079 | (41,606) |
Comprehensive income | $ 236,979 | $ 204,142 | $ 127,035 |
PARENT COMPANY STATEMENTS, Co_3
PARENT COMPANY STATEMENTS, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | Sep. 18, 2019 | Jul. 12, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating activities: | |||||
Net income | $ 164,676 | $ 169,063 | $ 168,641 | ||
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Net change in other assets and other liabilities | (16,939) | 2,545 | 10,252 | ||
Net cash provided by operating activities | 179,483 | 202,502 | 221,408 | ||
Investing activities: | |||||
Cash received /(paid) for acquisition, net of cash acquired of $55,973, $90,381, and $16, respectively | $ (500) | $ (95,034) | 34,360 | (4,653) | (1,737) |
Net cash (used in)/provided by investing activities | (398,720) | (157,054) | 17,495 | ||
Financing activities: | |||||
Issuance of common stock | 15,792 | 6,915 | 6,443 | ||
Purchase of treasury stock | (271) | (286) | (298) | ||
Sale of treasury stock | 85 | 6,884 | 12,561 | ||
Increase in deferred compensation agreements | 271 | 286 | 298 | ||
Net cash provided by/(used in) financing activities | 1,660,012 | (52,252) | (248,107) | ||
Change in cash and cash equivalents | 1,440,775 | (6,804) | (9,204) | ||
Cash and cash equivalents at beginning of year | 205,030 | 211,834 | 221,038 | ||
Cash and cash equivalents at end of year | 1,645,805 | 205,030 | 211,834 | ||
Supplemental disclosures of cash flow information: | |||||
Cash paid for interest | 21,169 | 25,425 | 17,926 | ||
Supplemental disclosures of noncash financing activities | |||||
Dividends declared and unpaid | 22,695 | 21,342 | 19,808 | ||
Common stock issued for acquisition | 76,942 | 0 | 0 | ||
Cash acquired from acquisition | 55,973 | 90,381 | 16 | ||
Parent Company [Member] | |||||
Operating activities: | |||||
Net income | 164,676 | 169,063 | 168,641 | ||
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Equity in undistributed net income of subsidiaries | (49,789) | (27,753) | (65,026) | ||
Net change in other assets and other liabilities | 1,740 | 86 | (1,084) | ||
Net cash provided by operating activities | 116,627 | 141,396 | 102,531 | ||
Investing activities: | |||||
Proceeds from redemption of investment securities | 0 | 0 | 776 | ||
Purchases of investment securities | (3,000) | 0 | 0 | ||
Cash received /(paid) for acquisition, net of cash acquired of $55,973, $90,381, and $16, respectively | (20,892) | (92,056) | 0 | ||
Return of capital from/(capital contributions to) | 2 | 100,680 | 0 | ||
Net cash (used in)/provided by investing activities | (23,890) | 8,624 | 776 | ||
Financing activities: | |||||
Repayment of advances from subsidiaries | (482) | (1,652) | 0 | ||
Repayment of borrowings | (12,062) | (22,681) | (25,207) | ||
Issuance of common stock | 22,211 | 12,200 | 12,507 | ||
Purchase of treasury stock | (271) | (286) | (298) | ||
Sale of treasury stock | 85 | 6,884 | 12,561 | ||
Increase in deferred compensation agreements | 271 | 286 | 298 | ||
Cash dividends paid | (87,131) | (80,241) | (71,495) | ||
Net cash provided by/(used in) financing activities | (77,379) | (85,490) | (71,634) | ||
Change in cash and cash equivalents | 15,358 | 64,530 | 31,673 | ||
Cash and cash equivalents at beginning of year | 180,663 | 116,133 | 84,460 | ||
Cash and cash equivalents at end of year | 196,021 | 180,663 | 116,133 | ||
Supplemental disclosures of cash flow information: | |||||
Cash paid for interest | 2,555 | 4,306 | 4,857 | ||
Supplemental disclosures of noncash financing activities | |||||
Dividends declared and unpaid | 22,695 | 21,342 | 19,808 | ||
Advances from subsidiaries | 932 | 1,691 | 0 | ||
Common stock issued for acquisition | 76,942 | 0 | 0 | ||
Cash acquired from acquisition | $ 448 | $ 1,328 | $ 0 |
FAIR VALUE, Financial Assets an
FAIR VALUE, Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale investment securities [Abstract] | ||
Fair value, assets, levels transfers | $ 0 | |
Available-for-sale investment securities | 3,547,892 | |
Equity securities | 445 | $ 451 |
U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 2,501,382 | 2,043,759 |
Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 475,660 | 512,208 |
Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 522,638 | 432,862 |
Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 4,635 | 2,528 |
Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 43,577 | 53,071 |
Significant Unobservable Inputs, Level 3 [Member] | Commitments to Originate Real Estate Loans for Sale [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 14 | |
Recurring [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 3,547,892 | 3,044,428 |
Equity securities | 445 | 451 |
Mortgage loans held for sale | 1,622 | |
Total | 3,550,473 | 3,045,144 |
Recurring [Member] | Commitments to Originate Real Estate Loans for Sale [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 14 | |
Recurring [Member] | Forward Sales Commitments [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative liability | 2 | |
Recurring [Member] | Interest Rate Swap Agreements | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 1,572 | 851 |
Derivative liability | (1,074) | (586) |
Recurring [Member] | U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 2,501,382 | 2,043,759 |
Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 475,660 | 512,208 |
Recurring [Member] | Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 522,638 | 432,862 |
Recurring [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 4,635 | 2,528 |
Recurring [Member] | Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 43,577 | 53,071 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 2,359,912 | 1,878,705 |
Equity securities | 445 | 451 |
Mortgage loans held for sale | 0 | |
Total | 2,360,357 | 1,879,156 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Commitments to Originate Real Estate Loans for Sale [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 0 | |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Forward Sales Commitments [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative liability | 0 | |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Interest Rate Swap Agreements | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 2,359,912 | 1,878,705 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 1,187,980 | 1,165,723 |
Equity securities | 0 | 0 |
Mortgage loans held for sale | 1,622 | |
Total | 1,190,102 | 1,165,988 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Commitments to Originate Real Estate Loans for Sale [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 0 | |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Forward Sales Commitments [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative liability | 2 | |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Interest Rate Swap Agreements | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 1,572 | 851 |
Derivative liability | (1,074) | (586) |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 141,470 | 165,054 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 475,660 | 512,208 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 522,638 | 432,862 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 4,635 | 2,528 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 43,577 | 53,071 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Equity securities | 0 | 0 |
Mortgage loans held for sale | 0 | |
Total | 14 | 0 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Commitments to Originate Real Estate Loans for Sale [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 14 | |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Forward Sales Commitments [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Derivative liability | 0 | |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Interest Rate Swap Agreements | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | $ 0 | $ 0 |
FAIR VALUE, Assets and Liabilit
FAIR VALUE, Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Mortgage servicing rights | $ 1,384 | $ 1,362 |
Valuation allowance | 3,874 | 0 |
Mortgage Servicing Rights [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Valuation allowance | 200 | |
Significant Unobservable Inputs, Level 3 [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Impaired loans | 25,063 | 848 |
Other real estate owned | 883 | 1,270 |
Mortgage servicing rights | $ 682 | 56 |
Significant Unobservable Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Discount rate | 11.00% | |
Significant Unobservable Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Discount rate | 53.00% | |
Non-recurring [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Impaired loans | $ 25,063 | 848 |
Other real estate owned | 883 | 1,270 |
Mortgage servicing rights | 682 | 56 |
Total | 26,628 | 2,174 |
Non-recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Total | 0 | 0 |
Non-recurring [Member] | Significant Observable Inputs, Level 2 [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Total | 0 | 0 |
Non-recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Impaired loans | 25,063 | 848 |
Other real estate owned | 883 | 1,270 |
Mortgage servicing rights | 682 | 56 |
Total | $ 26,628 | $ 2,174 |
FAIR VALUE, Significant Unobser
FAIR VALUE, Significant Unobservable Inputs (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | |
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Fair value of MSRs at end of period | $ 1,362,000 | $ 1,384,000 |
Significant Unobservable Inputs, Level 3 [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Impaired loans | 848,000 | 25,063,000 |
Other real estate owned | 1,270,000 | 883,000 |
Fair value of MSRs at end of period | $ 56,000 | $ 682,000 |
Significant Unobservable Inputs, Level 3 [Member] | Weighted Average Discount Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember |
Significant Unobservable Inputs, Level 3 [Member] | Adequate Compensation [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, Measurement Input [Extensible List] | cbu:MeasurementInputAdequateCompensationMember | cbu:MeasurementInputAdequateCompensationMember |
Significant Unobservable Inputs, Level 3 [Member] | Fair Value of Collateral [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Impaired loans, Valuation Technique [Extensible List] | cbu:ValuationTechniqueFairValueOfCollateralMember | |
Other real estate owned, Valuation Technique [Extensible List] | cbu:ValuationTechniqueFairValueOfCollateralMember | |
Significant Unobservable Inputs, Level 3 [Member] | Fair Value of Collateral [Member] | Estimated Cost of Disposal/Market Adjustment [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Impaired loans, Valuation Technique [Extensible List] | cbu:ValuationTechniqueFairValueOfCollateralMember | |
Impaired loans, Measurement Input [Extensible List] | cbu:MeasurementInputEstimatedCostOfDisposalOrMarketAdjustmentMember | cbu:MeasurementInputEstimatedCostOfDisposalOrMarketAdjustmentMember |
Other real estate owned, Valuation Technique [Extensible List] | cbu:ValuationTechniqueFairValueOfCollateralMember | |
Other real estate owned, Measurement Input [Extensible List] | cbu:MeasurementInputEstimatedCostOfDisposalOrMarketAdjustmentMember | us-gaap:MeasurementInputCostToSellMember |
Other real estate owned, measurement input | 9 | |
Significant Unobservable Inputs, Level 3 [Member] | Discounted Cash Flow [Member] | Weighted Average Constant Prepayment Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | 52.8 | |
Mortgage servicing rights, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Mortgage servicing rights, Measurement Input [Extensible List] | us-gaap:MeasurementInputConstantPrepaymentRateMember | us-gaap:MeasurementInputConstantPrepaymentRateMember |
Significant Unobservable Inputs, Level 3 [Member] | Discounted Cash Flow [Member] | Weighted Average Discount Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | 3 | |
Significant Unobservable Inputs, Level 3 [Member] | Discounted Cash Flow [Member] | Adequate Compensation [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | 7 | |
Mortgage servicing rights, measurement input | 7,000 | |
Significant Unobservable Inputs, Level 3 [Member] | Minimum [Member] | Fair Value of Collateral [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Impaired loans, measurement input | 9 | |
Significant Unobservable Inputs, Level 3 [Member] | Minimum [Member] | Fair Value of Collateral [Member] | Estimated Cost of Disposal/Market Adjustment [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Impaired loans, measurement input | 9 | |
Other real estate owned, measurement input | 11.3 | |
Significant Unobservable Inputs, Level 3 [Member] | Minimum [Member] | Discounted Cash Flow [Member] | Weighted Average Constant Prepayment Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | 9.8 | |
Significant Unobservable Inputs, Level 3 [Member] | Minimum [Member] | Discounted Cash Flow [Member] | Weighted Average Discount Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | 1.7 | |
Significant Unobservable Inputs, Level 3 [Member] | Maximum [Member] | Fair Value of Collateral [Member] | Estimated Cost of Disposal/Market Adjustment [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Impaired loans, measurement input | 35 | 78.4 |
Other real estate owned, measurement input | 85.7 | 52.9 |
Significant Unobservable Inputs, Level 3 [Member] | Maximum [Member] | Discounted Cash Flow [Member] | Weighted Average Constant Prepayment Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | 18.8 | |
Significant Unobservable Inputs, Level 3 [Member] | Maximum [Member] | Discounted Cash Flow [Member] | Weighted Average Discount Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | 2.2 | |
Significant Unobservable Inputs, Level 3 [Member] | Weighted Average [Member] | Fair Value of Collateral [Member] | Estimated Cost of Disposal/Market Adjustment [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Impaired loans, measurement input | (27.9) | (52.7) |
Other real estate owned, measurement input | (37.1) | (34) |
Significant Unobservable Inputs, Level 3 [Member] | Weighted Average [Member] | Discounted Cash Flow [Member] | Weighted Average Constant Prepayment Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | (17.6) | |
Significant Unobservable Inputs, Level 3 [Member] | Weighted Average [Member] | Discounted Cash Flow [Member] | Weighted Average Discount Rate [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Mortgage servicing rights, measurement input | (2.1) | |
Commitments to Originate Real Estate Loans for Sale [Member] | Significant Unobservable Inputs, Level 3 [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Commitments to originate real estate loans for sale | $ 14,000 | |
Commitments to originate real estate loans for sale, measurement input | 1 | |
Commitments to Originate Real Estate Loans for Sale [Member] | Significant Unobservable Inputs, Level 3 [Member] | Discounted Cash Flow [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Commitments to originate real estate loans for sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | |
Commitments to Originate Real Estate Loans for Sale [Member] | Significant Unobservable Inputs, Level 3 [Member] | Discounted Cash Flow [Member] | Embedded Servicing Value [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Commitments to originate real estate loans for sale, Measurement Input [Extensible List] | cbu:MeasurementInputEmbeddedServicingValueMember |
FAIR VALUE, Carrying Amounts an
FAIR VALUE, Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value [Member] | ||
Financial assets [Abstract] | ||
Net loans | $ 7,355,083 | $ 6,840,632 |
Financial liabilities [Abstract] | ||
Deposits | 11,224,974 | 8,994,967 |
Overnight Federal Home Loan Bank borrowings | 0 | 8,300 |
Securities sold under agreement to repurchase, short-term | 284,008 | 241,708 |
Other Federal Home Loan Bank borrowings | 6,658 | 3,750 |
Subordinated notes payable | 3,303 | 13,795 |
Subordinated debt held by unconsolidated subsidiary trusts | 77,320 | 77,320 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Net loans | 7,655,044 | 7,028,663 |
Financial liabilities [Abstract] | ||
Deposits | 11,239,628 | 8,997,551 |
Overnight Federal Home Loan Bank borrowings | 0 | 8,300 |
Securities sold under agreement to repurchase, short-term | 284,008 | 241,708 |
Other Federal Home Loan Bank borrowings | 6,758 | 3,755 |
Subordinated notes payable | 3,303 | 13,795 |
Subordinated debt held by unconsolidated subsidiary trusts | $ 77,320 | $ 77,320 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - Interest Rate Swap Agreements - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments [Abstract] | ||
Derivative, notional amount | $ 14.4 | $ 16.4 |
Derivative weighted average receive rate | 2.10% | 3.72% |
Derivative weighted average pay rate | 4.44% | 4.39% |
Weighted average maturity period | 5 years 2 months 12 days | 6 years 1 month 6 days |
Designated As Hedging Instrument | Fair Value Hedging [Member] | ||
Derivative Instruments [Abstract] | ||
Derivative, notional amount | $ 5.7 | $ 6.2 |
Derivative weighted average receive rate | 1.42% | 2.47% |
Derivative weighted average pay rate | 3.11% | 3.11% |
Weighted average maturity period | 12 years 6 months | 13 years 6 months |
DERIVATIVE INSTRUMENTS, Cumulat
DERIVATIVE INSTRUMENTS, Cumulative Basis Adjustments for Fair Value Hedges (Details) - Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Cumulative Basis Adjustments for Fair Value Hedges [Abstract] | ||
Carrying amount of the hedged assets | $ 5,675 | $ 6,390 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets | $ (498) | $ (265) |
DERIVATIVE INSTRUMENTS, Fair Va
DERIVATIVE INSTRUMENTS, Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Values of Derivative Instruments | ||
Derivative assets | $ 1,588 | $ 851 |
Derivative liabilities | 1,074 | 586 |
Interest Rate Swap Agreements | Designated As Hedging Instrument | Other Assets | ||
Fair Values of Derivative Instruments | ||
Derivative assets | 498 | 265 |
Interest Rate Swap Agreements | Not Designated as Hedging Instrument | Other Assets | ||
Fair Values of Derivative Instruments | ||
Derivative assets | 1,074 | 586 |
Interest Rate Swap Agreements | Not Designated as Hedging Instrument | Accrued Interest and Other Liabilities | ||
Fair Values of Derivative Instruments | ||
Derivative liabilities | 1,074 | $ 586 |
Commitments to Originate Real Estate Loans for Sale | Not Designated as Hedging Instrument | Other Assets | ||
Fair Values of Derivative Instruments | ||
Derivative assets | 14 | |
Forward Sales Commitments | Not Designated as Hedging Instrument | Other Assets | ||
Fair Values of Derivative Instruments | ||
Derivative assets | $ 2 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 1,645,805 | $ 205,030 | $ 211,834 | $ 221,038 |
Premises and equipment, net | 165,655 | 164,638 | ||
Other assets | 281,903 | 243,082 | ||
Total assets | 13,931,094 | 11,410,295 | $ 10,607,295 | |
Accrued interest and other liabilities | 230,724 | 215,221 | ||
Total liabilities | $ 11,826,987 | 9,555,061 | ||
Variable Interest Entity, Primary Beneficiary [Member] | 706 North Clinton [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of membership interest | 50.00% | |||
Cash and cash equivalents | $ 157 | 138 | ||
Premises and equipment, net | 5,782 | 5,945 | ||
Other assets | 48 | 42 | ||
Total assets | 5,987 | 6,125 | ||
Accrued interest and other liabilities | 0 | $ 1 | ||
Minority interest | 3,000 | |||
Loss of minority interest | 4,300 | |||
Minority interest loss exposure related to financing agreement | $ 1,300 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 12, 2019 | |
Information about reportable segments [Abstract] | ||||
Net interest income | $ 368,403 | $ 359,175 | $ 345,055 | |
Provision for credit losses | 14,212 | 8,430 | 10,837 | |
Noninterest revenue | 228,419 | 230,619 | 224,059 | |
Amortization of intangible assets | 14,297 | 15,956 | 18,155 | |
Acquisition expenses | 4,933 | 8,608 | (769) | |
Other operating expenses | 357,304 | 347,462 | 327,903 | |
Income before income taxes | 206,076 | 209,338 | 212,988 | |
Assets | 13,931,094 | 11,410,295 | 10,607,295 | |
Goodwill | 793,708 | 773,810 | 733,503 | $ 39,970 |
Core deposit intangibles & Other intangibles | 52,940 | 63,113 | 73,846 | |
Eliminations [Member] | ||||
Information about reportable segments [Abstract] | ||||
Net interest income | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | |
Noninterest revenue | (6,214) | (3,006) | (2,993) | |
Amortization of intangible assets | 0 | 0 | 0 | |
Acquisition expenses | 0 | 0 | 0 | |
Other operating expenses | (6,214) | (3,006) | (2,993) | |
Income before income taxes | 0 | 0 | 0 | |
Assets | (131,860) | (101,255) | (66,076) | |
Goodwill | 0 | 0 | 0 | |
Core deposit intangibles & Other intangibles | 0 | 0 | 0 | |
Banking [Member] | Operating Segments [Member] | ||||
Information about reportable segments [Abstract] | ||||
Net interest income | 367,237 | 358,334 | 344,551 | |
Provision for credit losses | 14,212 | 8,430 | 10,837 | |
Noninterest revenue | 69,578 | 75,067 | 75,399 | |
Amortization of intangible assets | 5,515 | 5,751 | 6,429 | |
Acquisition expenses | 4,933 | 8,608 | (782) | |
Other operating expenses | 255,955 | 245,870 | 231,362 | |
Income before income taxes | 156,200 | 164,742 | 172,104 | |
Assets | 13,762,325 | 11,225,509 | 10,397,623 | |
Goodwill | 690,121 | 670,223 | 629,916 | |
Core deposit intangibles & Other intangibles | 13,831 | 16,418 | 18,596 | |
Employee Benefit Services [Member] | Operating Segments [Member] | ||||
Information about reportable segments [Abstract] | ||||
Net interest income | 943 | 665 | 376 | |
Provision for credit losses | 0 | 0 | 0 | |
Noninterest revenue | 103,456 | 99,483 | 94,449 | |
Amortization of intangible assets | 5,724 | 6,770 | 8,015 | |
Acquisition expenses | 0 | 0 | 7 | |
Other operating expenses | 60,709 | 59,428 | 56,275 | |
Income before income taxes | 37,966 | 33,950 | 30,528 | |
Assets | 217,780 | 209,690 | 207,460 | |
Goodwill | 83,275 | 83,275 | 83,275 | |
Core deposit intangibles & Other intangibles | 32,051 | 37,775 | 44,545 | |
All Other [Member] | Operating Segments [Member] | ||||
Information about reportable segments [Abstract] | ||||
Net interest income | 223 | 176 | 128 | |
Provision for credit losses | 0 | 0 | 0 | |
Noninterest revenue | 61,599 | 59,075 | 57,204 | |
Amortization of intangible assets | 3,058 | 3,435 | 3,711 | |
Acquisition expenses | 0 | 0 | 6 | |
Other operating expenses | 46,854 | 45,170 | 43,259 | |
Income before income taxes | 11,910 | 10,646 | 10,356 | |
Assets | 82,849 | 76,351 | 68,288 | |
Goodwill | 20,312 | 20,312 | 20,312 | |
Core deposit intangibles & Other intangibles | $ 7,058 | $ 8,920 | $ 10,705 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Jan. 20, 2021USD ($) |
Community Capital Trust IV | Subsequent event | |
Subsequent Event [Line Items] | |
Authorized amount of debentures and associated preferred securities for redemption | $ 77.3 |