Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Quarterly Report | true | |
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 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 Common Stock, Shares Outstanding | 53,918,062 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000723188 | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | CBU | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 2,205,926 | $ 1,645,805 |
Available-for-sale investment securities (cost of $4,039,978 and $3,427,779, respectively) | 4,012,739 | 3,547,892 |
Equity and other securities (cost of $43,955 and $46,511, respectively) | 44,923 | 47,455 |
Loans held for sale, at fair value | 1,340 | 1,622 |
Loans | 7,244,147 | 7,415,952 |
Allowance for credit losses | (51,750) | (60,869) |
Net loans | 7,192,397 | 7,355,083 |
Goodwill, net | 794,892 | 793,708 |
Core deposit intangibles, net | 11,267 | 13,831 |
Other intangibles, net | 36,513 | 39,109 |
Intangible assets, net | 842,672 | 846,648 |
Premises and equipment, net | 161,007 | 165,655 |
Accrued interest and fees receivable | 36,954 | 39,031 |
Other assets | 303,329 | 281,903 |
Total assets | 14,801,287 | 13,931,094 |
Liabilities: | ||
Noninterest-bearing deposits | 3,729,355 | 3,361,768 |
Interest-bearing deposits | 8,609,670 | 7,863,206 |
Total deposits | 12,339,025 | 11,224,974 |
Securities sold under agreement to repurchase, short-term | 194,887 | 284,008 |
Other Federal Home Loan Bank borrowings | 2,936 | 6,658 |
Subordinated notes payable | 3,290 | 3,303 |
Subordinated debt held by unconsolidated subsidiary trusts | 0 | 77,320 |
Accrued interest and other liabilities | 200,049 | 230,724 |
Total liabilities | 12,740,187 | 11,826,987 |
Commitments and contingencies (See Note J) | ||
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; 54,063,867 and 53,754,599 shares issued, respectively | 54,064 | 53,755 |
Additional paid-in capital | 1,037,088 | 1,025,163 |
Retained earnings | 1,015,742 | 960,183 |
Accumulated other comprehensive (loss) income | (48,400) | 62,077 |
Treasury stock, at cost (145,172 shares, including 145,157 shares held by deferred compensation arrangements at June 30, 2021 and 161,472 shares including 161,457 shares held by deferred compensation arrangements at December 31, 2020, respectively) | (5,632) | (6,198) |
Deferred compensation arrangements (145,157 and 161,457 shares, respectively) | 8,238 | 9,127 |
Total shareholders' equity | 2,061,100 | 2,104,107 |
Total liabilities and shareholders' equity | $ 14,801,287 | $ 13,931,094 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Available-for-sale investment securities, cost | $ 4,039,978 | $ 3,427,779 |
Equity and other securities, cost | $ 43,955 | $ 46,511 |
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) | 54,063,867 | 53,754,599 |
Treasury stock, shares at cost (in shares) | 145,172 | 161,472 |
Shares held by deferred compensation arrangements (in shares) | 145,157 | 161,457 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Interest and fees on loans | $ 75,907 | $ 78,720 | $ 155,621 | $ 157,285 |
Interest and dividends on taxable investments | 16,789 | 15,423 | 31,964 | 30,752 |
Interest and dividends on nontaxable investments | 2,664 | 3,049 | 5,440 | 6,150 |
Total interest income | 95,360 | 97,192 | 193,025 | 194,187 |
Interest expense: | ||||
Interest on deposits | 2,963 | 4,173 | 6,075 | 9,718 |
Interest on borrowings | 253 | 430 | 521 | 988 |
Interest on subordinated notes payable | 39 | 184 | 77 | 369 |
Interest on subordinated debt held by unconsolidated subsidiary trusts | 0 | 454 | 293 | 1,107 |
Total interest expense | 3,255 | 5,241 | 6,966 | 12,182 |
Net interest income | 92,105 | 91,951 | 186,059 | 182,005 |
Provision for credit losses | (4,338) | 9,774 | (10,057) | 15,368 |
Net interest income after provision for credit losses | 96,443 | 82,177 | 196,116 | 166,637 |
Noninterest revenues: | ||||
Deposit service fees | 14,236 | 12,179 | 28,316 | 28,462 |
Mortgage banking | 331 | 1,375 | 1,019 | 2,291 |
Other banking services | 980 | 755 | 1,834 | 1,650 |
Employee benefit services | 27,477 | 24,068 | 54,010 | 49,434 |
Insurance services | 8,209 | 8,183 | 16,362 | 16,241 |
Wealth management services | 8,227 | 6,366 | 16,426 | 13,500 |
Unrealized gain (loss) on equity securities | 0 | 12 | 24 | (18) |
Total noninterest revenues | 59,460 | 52,938 | 117,991 | 111,560 |
Noninterest expenses: | ||||
Salaries and employee benefits | 57,892 | 54,721 | 115,524 | 112,972 |
Occupancy and equipment | 10,270 | 9,754 | 21,570 | 20,493 |
Data processing and communications | 12,766 | 10,833 | 25,157 | 21,246 |
Amortization of intangible assets | 3,246 | 3,524 | 6,597 | 7,191 |
Legal and professional fees | 2,499 | 3,061 | 5,533 | 6,212 |
Business development and marketing | 2,659 | 1,504 | 4,689 | 4,017 |
Acquisition expenses | 4 | 3,372 | 31 | 3,741 |
Other expenses | 4,207 | 4,134 | 7,688 | 8,694 |
Total noninterest expenses | 93,543 | 90,903 | 186,789 | 184,566 |
Income before income taxes | 62,360 | 44,212 | 127,318 | 93,631 |
Income taxes | 14,416 | 8,964 | 26,524 | 18,249 |
Net income | $ 47,944 | $ 35,248 | $ 100,794 | $ 75,382 |
Basic earnings per share (in dollars per share) | $ 0.89 | $ 0.67 | $ 1.86 | $ 1.44 |
Diluted earnings per share (in dollars per share) | $ 0.88 | $ 0.66 | $ 1.85 | $ 1.43 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Pension and other post retirement obligations: | |||||
Amortization of actuarial losses included in net periodic pension cost, gross | $ 911 | $ 820 | $ 1,822 | $ 1,640 | |
Tax effect | (219) | (197) | (438) | (394) | |
Amortization of actuarial losses included in net periodic pension cost, net | 692 | 623 | 1,384 | 1,246 | |
Amortization of prior service cost included in net periodic pension cost, gross | 50 | 16 | 100 | 31 | |
Tax effect | (12) | (4) | (24) | (7) | |
Amortization of prior service cost included in net periodic pension cost, net | 38 | 12 | 76 | 24 | |
Other comprehensive income related to pension and other post retirement obligations, net of taxes | 730 | 635 | 1,460 | 1,270 | |
Unrealized gains (losses) on available-for-sale securities: | |||||
Net unrealized holding (losses) gains arising during period, gross | 80,074 | 7,832 | (147,353) | 130,260 | |
Tax effect | (19,247) | (1,880) | 35,416 | (31,273) | |
Net unrealized holding (losses) gains arising during period, net | 60,827 | 5,952 | (111,937) | 98,987 | |
Other comprehensive income (loss) related to unrealized gains (losses) on available-for-sale securities, net of taxes | 60,827 | 5,952 | (111,937) | 98,987 | |
Other comprehensive (loss) income, net of tax | 61,557 | 6,587 | (110,477) | 100,257 | |
Net income | 47,944 | 35,248 | 100,794 | 75,382 | |
Comprehensive income (loss) | 109,501 | $ 41,835 | (9,683) | $ 175,639 | |
Accumulated Other Comprehensive (Loss) Income By Component: | |||||
Unrealized (loss) for pension and other post-retirement obligations | (36,345) | (36,345) | $ (38,267) | ||
Tax effect | 8,932 | 8,932 | 9,394 | ||
Net unrealized (loss) for pension and other post-retirement obligations | (27,413) | (27,413) | (28,873) | ||
Unrealized (loss) gain on available-for-sale securities | (27,239) | (27,239) | 120,114 | ||
Tax effect | 6,252 | 6,252 | (29,164) | ||
Net unrealized (loss) gain on available-for-sale securities | (20,987) | (20,987) | 90,950 | ||
Accumulated other comprehensive (loss) income | $ (48,400) | $ (48,400) | $ 62,077 |
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] | Accumulated Other Comprehensive Income/(Loss) [Member] | Treasury Stock [Member] | Deferred Compensation Arrangements [Member] | Total |
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 [Roll Forward] | ||||||||
Net income | 75,382 | 75,382 | ||||||
Other comprehensive income (loss), net of tax | 100,257 | 100,257 | ||||||
Cumulative effect of change in accounting Principle - Current Expected Credit Losses | 530 | 530 | ||||||
Dividends declared: | ||||||||
Common | (43,371) | (43,371) | ||||||
Common stock activity under employee stock plans | 334 | 12,689 | 13,023 | |||||
Common stock activity under employee stock plans (in shares) | 333,556 | |||||||
Stock-based compensation | 3,233 | 3,233 | ||||||
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 issued to benefit plans, net | 38 | (92) | 139 | 85 | ||||
Treasury stock issued to benefit plans, net (in shares) | 981 | |||||||
Balance at Jun. 30, 2020 | 53,672 | 1,019,291 | 915,392 | 90,031 | (6,066) | 8,995 | 2,081,315 | |
Balance (in shares) at Jun. 30, 2020 | 53,514,216 | |||||||
Balance at Mar. 31, 2020 | 52,190 | 935,924 | 902,148 | 83,444 | (6,005) | 8,930 | 1,976,631 | |
Balance (in shares) at Mar. 31, 2020 | 52,031,092 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 35,248 | 35,248 | ||||||
Other comprehensive income (loss), net of tax | 6,587 | 6,587 | ||||||
Dividends declared: | ||||||||
Common | (22,004) | (22,004) | ||||||
Common stock activity under employee stock plans | 119 | 6,505 | 6,624 | |||||
Common stock activity under employee stock plans (in shares) | 118,968 | |||||||
Stock-based compensation | 1,281 | 1,281 | ||||||
Stock issued for acquisition | 1,363 | 75,579 | 76,942 | |||||
Stock issued for acquisition (in shares) | 1,363,259 | |||||||
Treasury stock issued to benefit plans, net | 2 | (61) | 65 | 6 | ||||
Treasury stock issued to benefit plans, net (in shares) | 897 | |||||||
Balance at Jun. 30, 2020 | 53,672 | 1,019,291 | 915,392 | 90,031 | (6,066) | 8,995 | 2,081,315 | |
Balance (in shares) at Jun. 30, 2020 | 53,514,216 | |||||||
Balance at Dec. 31, 2020 | 53,755 | 1,025,163 | 960,183 | 62,077 | (6,198) | 9,127 | 2,104,107 | |
Balance (in shares) at Dec. 31, 2020 | 53,593,127 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 100,794 | 100,794 | ||||||
Other comprehensive income (loss), net of tax | (110,477) | (110,477) | ||||||
Dividends declared: | ||||||||
Common | (45,235) | (45,235) | ||||||
Common stock activity under employee stock plans | 309 | 8,360 | 8,669 | |||||
Common stock activity under employee stock plans (in shares) | 309,268 | |||||||
Stock-based compensation | 3,242 | 3,242 | ||||||
Distribution of stock under deferred compensation arrangements | 323 | 694 | (1,017) | 0 | ||||
Distribution of stock under deferred compensation arrangements (in shares) | 18,089 | |||||||
Treasury stock issued to benefit plans, net | (128) | 128 | 0 | |||||
Treasury stock issued to benefit plans, net (in shares) | (1,789) | |||||||
Balance at Jun. 30, 2021 | 54,064 | 1,037,088 | 1,015,742 | (48,400) | (5,632) | 8,238 | 2,061,100 | |
Balance (in shares) at Jun. 30, 2021 | 53,918,695 | |||||||
Balance at Mar. 31, 2021 | 54,019 | 1,034,225 | 990,504 | (109,957) | (5,572) | 8,178 | 1,971,397 | |
Balance (in shares) at Mar. 31, 2021 | 53,874,979 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 47,944 | 47,944 | ||||||
Other comprehensive income (loss), net of tax | 61,557 | 61,557 | ||||||
Dividends declared: | ||||||||
Common | (22,706) | (22,706) | ||||||
Common stock activity under employee stock plans | 45 | 1,295 | 1,340 | |||||
Common stock activity under employee stock plans (in shares) | 44,493 | |||||||
Stock-based compensation | 1,568 | 1,568 | ||||||
Treasury stock issued to benefit plans, net | (60) | 60 | 0 | |||||
Treasury stock issued to benefit plans, net (in shares) | 777 | |||||||
Balance at Jun. 30, 2021 | $ 54,064 | $ 1,037,088 | $ 1,015,742 | $ (48,400) | $ (5,632) | $ 8,238 | $ 2,061,100 | |
Balance (in shares) at Jun. 30, 2021 | 53,918,695 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash dividends declared: | ||||
Dividends declared per common share (in dollars per share) | $ 0.42 | $ 0.41 | $ 0.84 | $ 0.82 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||
Net income | $ 100,794 | $ 75,382 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 8,014 | 7,995 |
Amortization of intangible assets | 6,597 | 7,191 |
Net accretion on securities, loans and borrowings | (11,729) | (5,902) |
Stock-based compensation | 3,242 | 3,233 |
Provision for credit losses | (10,057) | 15,368 |
Amortization of mortgage servicing rights | 269 | 166 |
Unrealized (gain) loss on equity securities | (24) | 18 |
Income from bank-owned life insurance policies | (981) | (866) |
Net gain on sale of loans and other assets | (463) | (529) |
Change in other assets and other liabilities | (7,585) | (6,701) |
Net cash provided by operating activities | 88,077 | 95,355 |
Investing activities: | ||
Proceeds from maturities, calls, and paydowns of available-for-sale investment securities | 151,994 | 130,739 |
Proceeds from maturities and redemptions of equity and other investment securities | 2,648 | 406 |
Purchases of available-for-sale investment securities | (759,022) | (65,211) |
Purchases of equity and other securities | (92) | (24) |
Net decrease (increase) in loans | 179,167 | (296,873) |
Cash (paid) received for acquisitions, net of cash acquired of $0 and $55,973, respectively | (2,900) | 34,360 |
Purchases of premises and equipment, net | (5,689) | (4,641) |
Real estate tax credit investments | (320) | (550) |
Net cash used in investing activities | (434,214) | (201,794) |
Financing activities: | ||
Net increase in deposits | 1,114,051 | 1,335,437 |
Net decrease in borrowings | (92,843) | (83,563) |
Payments on subordinated debt held by unconsolidated subsidiary trusts | (77,320) | 0 |
Issuance of common stock | 8,669 | 13,023 |
Purchases of treasury stock | (128) | (139) |
Sales of treasury stock | 0 | 85 |
Increase in deferred compensation arrangements | 128 | 139 |
Cash dividends paid | (45,162) | (42,609) |
Withholding taxes paid on share-based compensation | (1,137) | (1,084) |
Net cash provided by financing activities | 906,258 | 1,221,289 |
Change in cash and cash equivalents | 560,121 | 1,114,850 |
Cash and cash equivalents at beginning of period | 1,645,805 | 205,030 |
Cash and cash equivalents at end of period | 2,205,926 | 1,319,880 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 7,644 | 12,336 |
Cash paid for income taxes | 22,482 | 10,459 |
Supplemental disclosures of noncash financing and investing activities: | ||
Dividends declared and unpaid | 22,768 | 22,104 |
Transfers from loans to other real estate | 120 | 990 |
Acquisitions: | ||
Common stock issued | 0 | 76,942 |
Fair value of assets acquired, excluding acquired cash and intangibles | 199 | 549,983 |
Fair value of liabilities assumed | $ 174 | $ 530,767 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Investing activities: | ||
Cash acquired related to acquisition | $ 0 | $ 55,973 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE A: BASIS OF PRESENTATION The interim financial data as of and for the three and six months ended June 30, 2021 is unaudited; however, in the opinion of Community Bank System, Inc. (the “Company”), the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in conformity with generally accepted accounting principles in the United States of America (“GAAP”) and Article 10 of Regulation S-X. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. The Company’s unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (“SEC”) on March 1, 2021. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2021 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE B: ACQUISITIONS Subsequent Events On July 1, 2021, the Company, through its subsidiary Benefit Plans Administrative Services, Inc., completed its acquisition of Fringe Benefits Design of Minnesota, Inc. (“FBD”) for $15.3 million in cash, excluding contingent consideration valued up to $2.7 million. The Company expects to incur certain one-time, transaction-related costs in the third quarter of 2021 in connection with the FBD acquisition, and the effects of the acquisition will be reflected in the third quarter consolidated financial statements. On August 2, 2021, the Company, through its subsidiary OneGroup NY, Inc. (“OneGroup”), completed its acquisition of certain assets of the Thomas Gregory Associates Insurance Brokers, Inc. (“TGA”), a specialty-lines insurance broker based in the Boston, Massachusetts marketplace, for $11.6 million in cash, excluding contingent consideration valued up to $3.4 million. The Company expects to incur certain one-time, transaction-related costs in the third quarter of 2021 in connection with the TGA acquisition, and the effects of the acquisition will be reflected in the third quarter consolidated financial statements. Current and Prior Period Acquisitions On June 1, 2021, the Company, through its subsidiary OneGroup, completed its acquisition of certain assets of NuVantage Insurance Corp. ("NuVantage"), an insurance agency headquartered in Melbourne, Florida. The Company paid $2.9 million in cash and recorded a $1.4 million customer list intangible asset and $1.5 million of goodwill in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. 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 had already operated. 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 $20.0 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 $3.3 million and $6.5 million, and direct expenses, which may not include certain shared expenses, of approximately $1.2 million and $2.5 million from Steuben were included in the consolidated income statement for the three and six months ended June 30, 2021. The Company incurred certain one-time, transaction-related costs in 2020 in connection with the Steuben acquisition. 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. Through the second quarter of 2021, the carrying amount of other liabilities associated with the Steuben acquisition decreased by $0.3 million as a result of an adjustment to accrued income taxes and deferred income taxes. Goodwill associated with the Steuben acquisition decreased $0.3 million as a result of this adjustment. The acquisitions expanded the Company’s geographical presence in New York and Florida 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: 2021 2020 (000s omitted) NuVantage Steuben Consideration paid : Cash $ 2,900 $ 21,613 Community Bank System, Inc. common stock 0 76,942 Total net consideration paid 2,900 98,555 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 0 55,973 Investment securities 0 180,497 Loans, net of allowance for credit losses on PCD loans 0 339,017 Premises and equipment, net 199 7,764 Accrued interest and fees receivable 0 2,701 Other assets 0 17,675 Core deposit intangibles 0 2,928 Other intangibles 1,437 1,196 Deposits 0 (516,274) Other liabilities (174) (4,841) Other Federal Home Loan Bank borrowings 0 (6,000) Subordinated debt held by unconsolidated subsidiary trusts 0 (2,062) Total identifiable assets, net 1,462 78,574 Goodwill $ 1,438 $ 19,981 The Company has acquired loans from Steuben for which there was evidence of a more-than-insignificant deterioration in credit quality since origination (purchased credit deteriorated (“PCD”) loans). 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. 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 Acquired loans that are 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. 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 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 core deposit intangibles and other intangibles related to the Steuben acquisition and the NuVantage acquisition are being amortized using an accelerated method over their estimated useful life of eight years. The goodwill, which is not amortized for book purposes, was assigned to the Banking segment for the Steuben Direct costs related to the acquisitions were expensed as incurred. Merger and acquisition integration-related expenses were immaterial during the three and six months ended June 30, 2021 and amounted to $3.4 million and $3.7 million during the three and six months ended June 30, 2020, respectively, and have been separately stated in the consolidated statements of income. Supplemental Pro Forma Financial Information The following unaudited condensed pro forma information assumes the Steuben acquisition had been completed as of January 1, 2019 for the three and six months ended June 30, 2020 and June 30, 2019. 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 acquisition 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 combined with the Company’s consolidated statements of income with adjustments related to (a) certain purchase accounting fair value adjustments and (b) amortization of customer lists and core deposit intangibles. Acquisition-related expenses totaling Pro Forma (Unaudited) Pro Forma (Unaudited) Three Months Ended Six Months Ended (000's omitted) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Total revenue, net of interest expense $ 149,576 $ 154,878 $ 304,088 $ 303,152 Net income 39,072 46,447 80,848 86,774 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTING POLICIES | |
ACCOUNTING POLICIES | NOTE C: ACCOUNTING POLICIES The accounting policies of the Company, as applied in the consolidated interim financial statements presented herein, are substantially the same as those followed on an annual basis as presented on pages 79 through 92 of the Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (“SEC”) on March 1, 2021 except as noted below. 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 June 30, 2021 and through the date of this Quarterly Report on Form 10-Q. 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. While there was not a material impact to the Company’s consolidated financial statements as of and for the three and six months ended June 30, 2021, the Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s consolidated financial statements in future reporting periods. 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 June 30, 2021, $27.4 million of accounts receivable, including $8.3 million of unbilled fee revenue, and $2.7 million of unearned revenue was recorded in the consolidated statements of condition. 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. Recently Adopted 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) . The updated guidance removed the requirements to identify amounts that are expected to be reclassified out of accumulated other comprehensive income and recognized as components of net periodic benefit cost in the next fiscal year, as well as the effects of a one-percentage-point change in assumed health care cost trend rates on service and interest cost and on the postretirement benefit obligation. The updated guidance added annual disclosure requirements for the weighted-average interest crediting rates for cash balance plans and other plans with interest crediting rates, and explanations for significant gains and losses related to changes in the benefit obligation for the period. This new guidance is effective retrospectively for fiscal years beginning after December 15, 2020 with early adoption permitted. The Company adopted this guidance on January 1, 2021 and determined the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . The updated guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, and clarifying and amending existing guidance to improve consistent application. This new guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted in any interim periods for which financial statements have not been issued. The Company adopted this guidance on January 1, 2021 and determined the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. New Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | NOTE D: INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities as of June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair (000's omitted) Cost Gains Losses Value Cost Gains Losses Value Available-for-Sale Portfolio: U.S. Treasury and agency securities $ 3,082,187 $ 52,960 $ 110,075 $ 3,025,072 $ 2,423,236 $ 94,741 $ 16,595 $ 2,501,382 Obligations of state and political subdivisions 405,245 20,908 1 426,152 451,028 24,632 0 475,660 Government agency mortgage-backed securities 521,056 10,999 2,916 529,139 506,540 16,280 182 522,638 Corporate debt securities 3,000 94 0 3,094 4,499 137 1 4,635 Government agency collateralized mortgage obligations 28,490 796 4 29,282 42,476 1,111 10 43,577 Total available-for-sale portfolio $ 4,039,978 $ 85,757 $ 112,996 $ 4,012,739 $ 3,427,779 $ 136,901 $ 16,788 $ 3,547,892 Equity and other Securities: Equity securities, at fair value $ 251 $ 218 $ 0 $ 469 $ 251 $ 194 $ 0 $ 445 Federal Home Loan Bank common stock 7,262 0 0 7,262 7,468 0 0 7,468 Federal Reserve Bank common stock 33,916 0 0 33,916 33,916 0 0 33,916 Other equity securities, at adjusted cost 2,526 750 0 3,276 4,876 750 0 5,626 Total equity and other securities $ 43,955 $ 968 $ 0 $ 44,923 $ 46,511 $ 944 $ 0 $ 47,455 A summary of investment securities that have been in a continuous unrealized loss position is as follows: As of June 30, 2021 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (000's omitted) # Value Losses # Value Losses # Value Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 29 $ 1,272,423 $ 110,075 0 $ 0 $ 0 29 $ 1,272,423 $ 110,075 Obligations of state and political subdivisions 4 1,651 1 0 0 0 4 1,651 1 Government agency mortgage-backed securities 126 170,661 2,914 6 1,146 2 132 171,807 2,916 Government agency collateralized mortgage obligations 3 1,804 3 3 182 1 6 1,986 4 Total available-for-sale investment portfolio 162 $ 1,446,539 $ 112,993 9 $ 1,328 $ 3 171 $ 1,447,867 $ 112,996 As of December 31, 2020 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (000's omitted) # Value Losses # Value Losses # 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 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 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 June 30, 2021 represents credit losses and no unrealized losses have been recognized into credit loss expense. Accordingly, there is no allowance for credit losses on the Company’s available-for-sale portfolio as of June 30, 2021. Accrued interest receivable on available-for-sale debt securities, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $ The amortized cost and estimated fair value of debt securities at June 30, 2021, 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 Fair (000's omitted) Cost Value Due in one year or less $ 198,566 $ 199,557 Due after one through five years 768,349 796,228 Due after five years through ten years 1,018,820 1,037,749 Due after ten years 1,504,697 1,420,784 Subtotal 3,490,432 3,454,318 Government agency mortgage-backed securities 521,056 529,139 Government agency collateralized mortgage obligations 28,490 29,282 Total $ 4,039,978 $ 4,012,739 Investment securities with a carrying value of $2.43 billion and $2.03 billion at June 30, 2021 and December 31, 2020, respectively, were pledged to collateralize certain deposits and borrowings. Securities pledged to collateralize certain deposits and borrowings included |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2021 | |
LOANS | |
LOANS | NOTE E: LOANS The segments of the Company’s loan portfolio are summarized as follows: June 30, December 31, (000’s omitted) 2021 2020 Business lending $ 3,186,487 $ 3,440,077 Consumer mortgage 2,408,499 2,401,499 Consumer indirect 1,109,504 1,021,885 Consumer direct 148,540 152,657 Home equity 391,117 399,834 Gross loans, including deferred origination costs 7,244,147 7,415,952 Allowance for credit losses (51,750) (60,869) Loans, net of allowance for credit losses $ 7,192,397 $ 7,355,083 The following table presents the aging of the amortized cost basis of the Company’s past due loans, including PCD loans, by segment as of June 30, 2021: Past Due 90+ Days Past 30 – 89 Due and Total (000’s omitted) Days Still Accruing Nonaccrual Past Due Current Total Loans Business lending $ 972 $ 228 $ 49,877 $ 51,077 $ 3,135,410 $ 3,186,487 Consumer mortgage 8,645 1,259 16,025 25,929 2,382,570 2,408,499 Consumer indirect 7,110 73 0 7,183 1,102,321 1,109,504 Consumer direct 507 15 2 524 148,016 148,540 Home equity 1,077 147 2,572 3,796 387,321 391,117 Total $ 18,311 $ 1,722 $ 68,476 $ 88,509 $ 7,155,638 $ 7,244,147 The following table presents the aging of the amortized cost basis of the Company’s past due loans, including 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 delinquency status for loans on payment deferment due to COVID-19 financial hardship were reported at June 30, 2021 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. Certain loans under extended pandemic-related forbearance were reclassified to nonaccrual status. No interest income on nonaccrual loans was recognized during the three and six months ended June 30, 2021. An immaterial amount of accrued interest was written off on nonaccrual loans by reversing interest income. 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 COVID- 19 related financial hardship payment deferrals were reviewed on a case-by-case basis for credit risk ratings. Loans on payment deferral 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 June 30, 2021 and December 31, 2020: Revolving Loans (000’s omitted) Term Loans Amortized Cost Basis by Origination Year Amortized June 30, 2021 2021 2020 2019 2018 2017 Prior Cost Basis Total Business lending: Risk rating Pass $ 343,472 $ 439,365 $ 338,583 $ 284,580 $ 189,477 $ 661,491 $ 507,921 $ 2,764,889 Special mention 2,001 12,961 12,084 36,635 21,586 72,145 34,484 191,896 Classified 360 2,163 21,063 49,150 27,397 84,543 42,178 226,854 Doubtful 0 0 16 1,931 0 35 866 2,848 Total business lending $ 345,833 $ 454,489 $ 371,746 $ 372,296 $ 238,460 $ 818,214 $ 585,449 $ 3,186,487 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 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 June 30, 2021: Revolving Loans (000’s omitted) Term Loans Amortized Cost Basis by Origination Year Amortized June 30, 2021 2021 2020 2019 2018 2017 Prior Cost Basis Total Consumer mortgage: FICO AB Performing $ 217,537 $ 245,277 $ 204,560 $ 139,256 $ 135,992 $ 660,613 $ 0 $ 1,603,235 Nonperforming 0 171 0 261 516 2,765 0 3,713 Total FICO AB 217,537 245,448 204,560 139,517 136,508 663,378 0 1,606,948 FICO CDE Performing 58,224 128,942 94,750 73,362 64,401 346,907 21,394 787,980 Nonperforming 0 234 901 744 702 10,990 0 13,571 Total FICO CDE 58,224 129,176 95,651 74,106 65,103 357,897 21,394 801,551 Total consumer mortgage $ 275,761 $ 374,624 $ 300,211 $ 213,623 $ 201,611 $ 1,021,275 $ 21,394 $ 2,408,499 Consumer indirect: Performing $ 317,236 $ 255,939 $ 240,528 $ 148,990 $ 59,328 $ 87,410 $ 0 $ 1,109,431 Nonperforming 0 10 38 13 0 12 0 73 Total consumer indirect $ 317,236 $ 255,949 $ 240,566 $ 149,003 $ 59,328 $ 87,422 $ 0 $ 1,109,504 Consumer direct: Performing $ 37,644 $ 37,762 $ 34,503 $ 18,947 $ 7,557 $ 6,100 $ 6,010 $ 148,523 Nonperforming 0 0 0 2 0 15 0 17 Total consumer direct $ 37,644 $ 37,762 $ 34,503 $ 18,949 $ 7,557 $ 6,115 $ 6,010 $ 148,540 Home equity: Performing $ 33,503 $ 47,348 $ 42,432 $ 23,450 $ 19,224 $ 43,050 $ 179,391 $ 388,398 Nonperforming 0 56 22 107 79 722 1,733 2,719 Total home equity $ 33,503 $ 47,404 $ 42,454 $ 23,557 $ 19,303 $ 43,772 $ 181,124 $ 391,117 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 All loan classes are collectively evaluated for impairment except business lending. A summary of individually evaluated impaired business loans as of June 30, 2021 and December 31, 2020 follows: June 30, December 31, (000’s omitted) 2021 2020 Loans with allowance allocation $ 25,534 $ 27,437 Loans without allowance allocation 6,529 8,138 Carrying balance 32,063 35,575 Contractual balance 34,228 38,362 Specifically allocated allowance 2,800 3,874 The average carrying balance of individually evaluated impaired loans was $32.9 million and $1.4 million for the three months ended June 30, 2021 and June 30, 2020, respectively. The average carrying balance of individually evaluated impaired loans was $34.6 million and $1.8 million for the six months ended June 30, 2021 and June 30, 2020, respectively. No interest income was recognized on individually evaluated impaired loans for the three or six months ended June 30, 2021 and June 30, 2020. 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 troubled debt restructuring (“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 the clarified guidance issued by the Office of the Comptroller of the Currency (“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 the three and six months ended June 31, 2021 and 2020 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, TDR 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 Company 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 June 30, 2021, the Company had 12 borrowers in forbearance due to COVID-19 related financial hardship, representing $2.4 million in outstanding loan balances, or 0.03% of total loans outstanding. These forbearances were comprised of 8 business borrowers representing $2.0 million in outstanding loan balances and 4 consumer borrowers representing approximately $0.4 million in outstanding loan balances. 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 June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 (000’s omitted) Nonaccrual Accruing Total Nonaccrual Accruing Total # Amount # Amount # Amount # Amount # Amount # Amount Business lending 6 $ 445 4 $ 180 10 $ 625 6 $ 529 4 $ 191 10 $ 720 Consumer mortgage 58 2,553 42 2,074 100 4,627 56 2,413 48 2,266 104 4,679 Consumer indirect 0 0 79 916 79 916 0 0 86 951 86 951 Consumer direct 0 0 17 14 17 14 0 0 23 85 23 85 Home equity 10 252 12 248 22 500 11 285 13 264 24 549 Total 74 $ 3,250 154 $ 3,432 228 $ 6,682 73 $ 3,227 174 $ 3,757 247 $ 6,984 The following table presents information related to loans modified in a TDR during the three months and six months ended June 30, 2021 and 2020. Of the loans noted in the table below, all consumer mortgage loans for the three months and six months ended June 30, 2021 and 2020 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial. Three Months Ended Three Months Ended June 30, 2021 June 30, 2020 Number of Outstanding Number of Outstanding (000’s omitted) loans modified Balance loans modified Balance Business lending 0 $ 0 0 $ 0 Consumer mortgage 7 366 3 174 Consumer indirect 9 116 3 47 Consumer direct 0 0 0 0 Home equity 0 0 1 28 Total 16 $ 482 7 $ 249 Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 Number of Outstanding Number of Outstanding (000’s omitted) loans modified Balance loans modified Balance Business lending 0 $ 0 0 $ 0 Consumer mortgage 10 474 9 738 Consumer indirect 15 177 14 151 Consumer direct 1 6 1 11 Home equity 0 0 1 28 Total 26 $ 657 25 $ 928 Allowance for Credit Losses The following presents by segment the activity in the allowance for credit losses during the three months and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 Beginning Charge- Ending (000’s omitted) balance offs Recoveries Provision balance Business lending $ 27,042 $ (2) $ 255 $ (3,878) $ 23,417 Consumer mortgage 9,686 (142) 9 448 10,001 Consumer indirect 11,120 (750) 1,183 (450) 11,103 Consumer direct 2,682 (195) 213 (152) 2,548 Home equity 1,543 (17) 5 265 1,796 Unallocated 1,000 0 0 0 1,000 Purchased credit deteriorated 1,996 0 33 (144) 1,885 Allowance for credit losses – loans 55,069 (1,106) 1,698 (3,911) 51,750 Liabilities for off-balance-sheet credit exposures 1,189 0 0 (427) 762 Total allowance for credit losses $ 56,258 $ (1,106) $ 1,698 $ (4,338) $ 52,512 Three Months Ended June 30, 2020 Beginning Charge- Steuben Ending (000’s omitted) balance offs Recoveries acquisition Provision balance Business lending $ 19,489 $ (7) $ 84 $ 2,483 $ 2,155 $ 24,204 Consumer mortgage 12,430 (234) 36 146 710 13,088 Consumer indirect 13,694 (1,431) 833 183 2,587 15,866 Consumer direct 3,737 (341) 171 87 374 4,028 Home equity 2,484 (81) 12 235 40 2,690 Unallocated 772 0 0 0 228 1,000 Purchased credit deteriorated 3,046 0 48 528 (61) 3,561 Allowance for credit losses – loans 55,652 (2,094) 1,184 3,662 6,033 64,437 Liabilities for off-balance-sheet credit exposures 845 0 0 67 540 1,452 Total allowance for credit losses $ 56,497 $ (2,094) $ 1,184 $ 3,729 $ 6,573 $ 65,889 Six Months Ended June 30, 2021 Beginning Charge- Ending (000’s omitted) balance offs Recoveries Provision balance Business lending $ 28,190 $ (53) $ 322 $ (5,042) $ 23,417 Consumer mortgage 10,672 (242) 19 (448) 10,001 Consumer indirect 13,696 (2,149) 2,429 (2,873) 11,103 Consumer direct 3,207 (513) 444 (590) 2,548 Home equity 2,222 (115) 9 (320) 1,796 Unallocated 1,000 0 0 0 1,000 Purchased credit deteriorated 1,882 0 60 (57) 1,885 Allowance for credit losses – loans 60,869 (3,072) 3,283 (9,330) 51,750 Liabilities for off-balance-sheet credit exposures 1,489 0 0 (727) 762 Total allowance for credit losses $ 62,358 $ (3,072) $ 3,283 $ (10,057) $ 52,512 Six Months Ended June 30, 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 $ (183) $ 222 $ 2,483 $ 1,968 $ 24,204 Consumer mortgage 10,269 (1,051) 9,218 (420) 44 146 4,100 13,088 Consumer indirect 13,712 (997) 12,715 (3,510) 1,996 183 4,482 15,866 Consumer direct 3,255 (643) 2,612 (874) 353 87 1,850 4,028 Home equity 2,129 808 2,937 (154) 18 235 (346) 2,690 Unallocated 957 43 1,000 0 0 0 0 1,000 Purchased credit deteriorated 0 3,072 3,072 0 48 528 (87) 3,561 Purchased credit impaired 163 (163) 0 0 0 0 0 0 Allowance for credit losses – loans 49,911 1,357 51,268 (5,141) 2,681 3,662 11,967 64,437 Liabilities for off-balance-sheet credit exposures 0 1,185 1,185 0 0 67 200 1,452 Total allowance for credit losses $ 49,911 $ 2,542 $ 52,453 $ (5,141) $ 2,681 $ 3,729 $ 12,167 $ 65,889 Improvements in economic forecasts have resulted in an allowance for credit losses to total loans ratio of 0.71% at June 30, 2021, 15 basis points lower than the level at June 30, 2020 and 11 basis points lower than the level at December 31, 2020. Accrued interest receivable on loans, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $19.0 million at June 30, 2021 and is excluded from the estimate of credit losses and amortized cost basis of loans. Under ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) 31, 2020. 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 June 30, 2021. 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 significant improvement in economic conditions with peak unemployment ranging from Management developed expected loss estimates considering factors for segments as outlined below: ● Business lending – non real estate: The Company considered and selected projected unemployment and GDP as possible indicators of forecasted losses related to business lending. 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 and selected projected unemployment and commercial and multi-family real estate values as possible indicators of forecasted losses related to commercial real estate loans. The Company also considered the factors noted in business lending – non real estate. ● Consumer mortgages and home equity: The Company considered and selected projected unemployment and residential real estate values as possible indicators of forecasted losses related to mortgage lending. In addition, current delinquencies, the level of loan deferrals, charge-offs and acquired loans were considered. ● Consumer indirect: The Company considered and selected projected unemployment and vehicle valuation indices as possible indicators of forecasted losses related to indirect lending. 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 and median household income as possible 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 six months ended June 30, 2021 by portfolio segment: Business Consumer Consumer Consumer Home (000’s omitted) lending mortgage indirect direct equity Total Purchases $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Sales 848 10,860 0 0 0 11,708 All the sales of consumer mortgages during the six months ended June 30, 2021 were sales of secondary market eligible residential mortgage loans. The sales of business loans during the six months ended June 30, 2021 includes two business lending loans under one relationship. |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 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 $ (58,136) $ 11,267 $ 69,403 $ (55,572) $ 13,831 Other intangibles 91,899 (55,386) 36,513 90,462 (51,353) 39,109 Total amortizing intangibles $ 161,302 $ (113,522) $ 47,780 $ 159,865 $ (106,925) $ 52,940 The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows: (000's omitted) Jul - Dec 2021 $ 6,229 2022 11,141 2023 9,338 2024 7,768 2025 6,550 Thereafter 6,754 Total $ 47,780 Shown below are the components of the Company’s goodwill at December 31, 2020 and June 30, 2021: (000’s omitted) December 31, 2020 Activity June 30, 2021 Goodwill, net $ 793,708 $ 1,184 $ 794,892 |
MANDATORILY REDEEMABLE PREFERRE
MANDATORILY REDEEMABLE PREFERRED SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
MANDATORILY REDEEMABLE PREFERRED SECURITIES | |
MANDATORILY REDEEMABLE PREFERRED SECURITIES | NOTE G: MANDATORILY REDEEMABLE PREFERRED SECURITIES As of June 30, 2021, the Company does not sponsor any business trusts. The Company previously sponsored Community Capital Trust IV (“CCT IV”) until March 15, 2021 when the Company exercised its right to redeem all of the CCT IV debentures and associated preferred securities for a total of |
BENEFIT PLANS
BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2021 | |
BENEFIT PLANS | |
BENEFIT PLANS | NOTE H: BENEFIT 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 stock balance plan for certain of its nonemployee directors. The Company accrues for the estimated cost of these benefits through charges to expense during the years that employees earn these benefits. The service cost component of net periodic benefit income is included in the salaries and employee benefits line of the consolidated statements of income, while the other components of net periodic benefit income are included in other expenses. The Company made a $2.9 million contribution to its defined benefit pension plan in the first quarter of 2021. The Company made a $3.9 million contribution to its defined benefit pension plan in the second quarter of 2020. The net periodic benefit cost for the three and six months ended June 30, 2021 and 2020 is as follows: Pension Benefits Post-retirement Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (000’s omitted) 2021 2020 2021 2020 2021 2020 2021 2020 Service cost $ 1,480 $ 1,438 $ 2,960 $ 2,875 $ 0 $ 0 $ 0 $ 0 Interest cost 1,259 1,356 2,518 2,712 11 14 22 28 Expected return on plan assets (4,695) (3,932) (9,391) (7,864) 0 0 0 0 Amortization of unrecognized net loss 900 810 1,800 1,620 11 10 22 20 Amortization of prior service cost 94 60 189 120 (44) (44) (89) (89) Net periodic benefit $ (962) $ (268) $ (1,924) $ (537) $ (22) $ (20) $ (45) $ (41) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE I: 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 June 30, 2021. 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 0.2 million and 0.1 million weighted-average anti-dilutive stock options outstanding for the three months and six months ended June 30, 2021, respectively, compared to 0.6 million weighted-average anti-dilutive stock options outstanding for the three months and six months ended June 30, 2020 that were not included in the computation below. The following is a reconciliation of basic to diluted earnings per share for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, (000’s omitted, except per share data) 2021 2020 2021 2020 Net income $ 47,944 $ 35,248 $ 100,794 $ 75,382 Income attributable to unvested stock-based compensation awards (127) (127) (263) (264) Income available to common shareholders $ 47,817 $ 35,121 $ 100,531 $ 75,118 Weighted-average common shares outstanding – basic 54,007 52,487 53,927 52,262 Basic earnings per share $ 0.89 $ 0.67 $ 1.86 $ 1.44 Net income $ 47,944 $ 35,248 $ 100,794 $ 75,382 Income attributable to unvested stock-based compensation awards (127) (127) (263) (264) Income available to common shareholders $ 47,817 $ 35,121 $ 100,531 $ 75,118 Weighted-average common shares outstanding – basic 54,007 52,487 53,927 52,262 Assumed exercise of stock options 462 339 455 372 Weighted-average common shares outstanding – diluted 54,469 52,826 54,382 52,634 Diluted earnings per share $ 0.88 $ 0.66 $ 1.85 $ 1.43 Stock Repurchase Program At its December 2019 meeting, the Company’s Board of Directors (the “Board”) approved a stock repurchase program authorizing the repurchase of up to 2.60 million shares of the Company’s common stock in accordance with securities laws and regulations, through December 31, 2020. At its December 2020 meeting, the Board approved a similar program for 2021, authorizing the repurchase of up to 2.68 million shares of the Company’s common stock through December 31, 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. The Company did not repurchase any shares under the authorized plan during the first six months of 2021 or 2020. |
COMMITMENTS, CONTINGENT LIABILI
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | NOTE J: 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: June 30, December 31, (000’s omitted) 2021 2020 Commitments to extend credit $ 1,199,804 $ 1,313,568 Standby letters of credit 35,382 39,213 Total $ 1,235,186 $ 1,352,781 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 June 30, 2021, 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 a settlement of a purported class action lawsuit regarding the Bank’s deposit account terms and overdraft disclosures. The Company executed a settlement agreement with respect to the lawsuit in the fourth quarter 2020 providing for a release of all claims asserted by class members in the action, and the Company does not anticipate that additional amounts will be accrued for this matter in future periods. Notice of the settlement terms was provided to all class members and no objections to the settlement were received prior to expiration of the notice period. The hearing for final Court approval of the settlement is scheduled on August 25, 2021. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE | |
FAIR VALUE | NOTE K: FAIR VALUE 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: ● Quoted prices in active markets for identical assets or liabilities. ● 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. ● 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. June 30, 2021 Total Fair (000's omitted) Level 1 Level 2 Level 3 Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 2,909,475 $ 115,597 $ 0 $ 3,025,072 Obligations of state and political subdivisions 0 426,152 0 426,152 Government agency mortgage-backed securities 0 529,139 0 529,139 Corporate debt securities 0 3,094 0 3,094 Government agency collateralized mortgage obligations 0 29,282 0 29,282 Total available-for-sale investment securities 2,909,475 1,103,264 0 4,012,739 Equity securities 469 0 0 469 Mortgage loans held for sale 0 1,340 0 1,340 Commitments to originate real estate loans for sale 0 0 130 130 Forward sales commitments 0 31 0 31 Interest rate swap agreements asset 0 372 0 372 Interest rate swap agreements liability 0 (7) 0 (7) Total $ 2,909,944 $ 1,105,000 $ 130 $ 4,015,074 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 The valuation techniques used to measure fair value for the items in the table above are as follows: ● Available-for-sale investment securities and equity securities – The fair values of available-for-sale investment securities are 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 D for further disclosure of the fair value of investment securities. ● Mortgage loans held for sale – The Company has elected to value 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 statements of income. All mortgage loans held for sale are current and in performing status. The fair value of mortgage loans held for sale is determined using quoted secondary-market prices of loans with similar characteristics and, as such, has been classified as a Level 2 valuation. The unpaid principal value of mortgage loans held for sale was approximately $ 1.3 million at June 30, 2021. 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 held for sale was recognized in mortgage banking revenues in the consolidated statements of income and is 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 swaps – The interest rate swaps are reported at their fair value utilizing Level 2 inputs from third parties. The fair value of the 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. The fair value information of assets and liabilities measured on a non-recurring basis presented below is not as of the period-end, but rather as of the date the fair value adjustment was recorded closest to the date presented. June 30, 2021 December 31, 2020 Total Fair Total Fair (000's omitted) Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 Value Impaired loans $ 0 $ 0 $ 21,330 $ 21,330 $ 0 $ 0 $ 25,063 $ 25,063 Other real estate owned 0 0 879 879 0 0 883 883 Mortgage servicing rights 0 0 697 697 0 0 682 682 Total $ 0 $ 0 $ 22,906 $ 22,906 $ 0 $ 0 $ 26,628 $ 26,628 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 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 9.0% to 51.1% at June 30, 2021 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 $0.1 million and $0.2 million at June 30, 2021 and December 31, 2020, respectively. 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. The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis are as follows: Significant Unobservable Input Fair Value at Range (000's omitted, except per loan data) June 30, 2021 Valuation Technique Significant Unobservable Inputs (Weighted Average) Impaired loans $ 21,330 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 78.7% (53.8%) Other real estate owned 879 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 51.1% (34.5%) Commitments to originate real estate loans for sale 130 Discounted cash flow Embedded servicing value 1.0 % Mortgage servicing rights 697 Discounted cash flow Weighted average constant prepayment rate 16.9% - 49.1% (21.8%) Weighted average discount rate 2.2% - 2.8% (2.7%) Adequate compensation $ 7/loan Significant Unobservable Input Fair Value at Range (000's omitted, except per loan data) December 31, 2020 Valuation Technique Significant Unobservable 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 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 OREO 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. 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 carrying amounts and estimated fair values of the Company’s other financial instruments that are not accounted for at fair value at June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (000's omitted) Value Value Value Value Financial assets: Net loans $ 7,192,397 $ 7,563,546 $ 7,355,083 $ 7,655,044 Financial liabilities: Deposits 12,339,025 12,349,413 11,224,974 11,239,628 Securities sold under agreement to repurchase, short-term 194,887 194,887 284,008 284,008 Other Federal Home Loan Bank borrowings 2,936 2,993 6,658 6,758 Subordinated notes payable 3,290 3,290 3,303 3,303 Subordinated debt held by unconsolidated subsidiary trusts 0 0 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 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 short-term borrowings and securities sold under agreement to repurchase, short-term, is the amount payable on demand at the reporting date. Fair values for long-term debt 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 | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | NOTE L: 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 June 30, 2021 and December 31, 2020. The effect of the changes to these derivatives for the three and six months then ended was also immaterial. The Company acquired interest rate swaps in 2017 with notional amounts with certain commercial customers which totaled $0.7 million at June 30, 2021 and $14.4 million at December 31, 2020. 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 $0.7 million at June 30, 2021 and $14.4 million at December 31, 2020. At June 30, 2021, the weighted average receive rate of these interest rate swaps was 2.34%, the weighted average pay rate was 3.54% and the weighted average maturity was 1.8 years. At December 31, 2020, the weighted average receive rate of these interest rate swaps was The Company also acquired interest rate swaps in 2017 with notional amounts totaling $5.4 million at June 30, 2021, and $5.7 million at December 31, 2020, that were designated as fair value hedges of certain fixed rate loans with municipalities which are recorded in loans in the consolidated statements of financial condition. At June 30, 2021, the weighted average receive rate of these interest rate swaps was 1.38%, the weighted average pay rate was 3.11% and the weighted average maturity was 12.0 years. 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. 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 three and six months ended June 30, 2021 are immaterial. As of June 30, 2021 and December 31, 2020, 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 Carrying Amount of the Hedged Hedging Adjustment Included in the Line Item in the Consolidated Assets Carrying Amount of the Hedged Assets Statement of Condition in Which June 30, December 31, June 30, December 31, the Hedged Item Is Included 2021 2020 2021 2020 Loans $ 5,809 $ 5,675 $ (365) $ (498) Fair values of derivative instruments as of June 30, 2021 and December 31, 2020 are as follows: (000’s omitted) June 30, 2021 Derivative Assets Derivative Liabilities Consolidated Statement Fair Consolidated Statement of Fair of Condition Location Value Condition Location Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets $ 365 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets 7 Accrued interest and other liabilities $ 7 Commitments to originate real estate loans for sale Other assets 130 Forward sales commitments Other assets 31 Total derivatives $ 533 $ 7 (000’s omitted) December 31, 2020 Derivative Assets Derivative Liabilities Consolidated Statement Fair Consolidated Statement of Fair of Condition Location Value Condition Location 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 The Company assessed its counterparty risk at June 30, 2021 and December 31, 2020 and determined any credit risk inherent in our derivative contracts was not material. Further information about the fair value of derivative financial instruments can be found in Note K to these consolidated financial statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | NOTE M: 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. Community Bank, N.A. (the “Bank” or “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 the operating subsidiaries Benefit Plans Administrative Services, LLC, BPAS Actuarial and Pension Services, LLC, BPAS Trust Company of Puerto Rico, Northeast Retirement Services, LLC (“NRS”), Global Trust Company, Inc. (“GTC”), and Hand Benefits & Trust Company, 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 Community Investment Services, Inc., The Carta Group, Inc. and OneGroup Wealth Partners, Inc. as well as asset management provided by Nottingham Advisors, Inc., and (b) full-service insurance, risk management and employee benefit services provided by OneGroup NY, Inc. 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, Summary of Significant Accounting Policies 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 Three Months Ended June 30, 2021 Net interest income $ 92,033 $ 65 $ 7 $ 0 $ 92,105 Provision for credit losses (4,338) 0 0 0 (4,338) Noninterest revenues 16,357 27,994 16,816 (1,707) 59,460 Amortization of intangible assets 1,240 1,327 679 0 3,246 Acquisition expenses 4 0 0 0 4 Other operating expenses 65,158 14,846 11,996 (1,707) 90,293 Income before income taxes $ 46,326 $ 11,886 $ 4,148 $ 0 $ 62,360 Assets $ 14,588,075 $ 235,141 $ 78,770 $ (100,699) $ 14,801,287 Goodwill $ 689,867 $ 83,275 $ 21,750 $ 0 $ 794,892 Core deposit intangibles & Other intangibles $ 11,267 $ 29,370 $ 7,143 $ 0 $ 47,780 Three Months Ended June 30, 2020 Net interest income $ 91,645 $ 246 $ 60 $ 0 $ 91,951 Provision for credit losses 9,774 0 0 0 9,774 Noninterest revenues 14,991 24,504 14,817 (1,374) 52,938 Amortization of intangible assets 1,364 1,411 749 0 3,524 Acquisition expenses 3,372 0 0 0 3,372 Other operating expenses 59,130 14,948 11,303 (1,374) 84,007 Income before income taxes $ 32,996 $ 8,391 $ 2,825 $ 0 $ 44,212 Assets $ 13,272,929 $ 216,122 $ 78,022 $ (122,856) $ 13,444,217 Goodwill $ 689,128 $ 83,275 $ 20,312 $ 0 $ 792,715 Core deposit intangibles & Other intangibles $ 16,565 $ 34,870 $ 8,611 $ 0 $ 60,046 Employee Consolidated (000's omitted) Banking Benefit Services All Other Eliminations Total Six Months Ended June 30, 2021 Net interest income $ 185,872 $ 159 $ 28 $ 0 $ 186,059 Provision for credit losses (10,057) 0 0 0 (10,057) Noninterest revenues 32,811 55,143 33,633 (3,596) 117,991 Amortization of intangible assets 2,564 2,681 1,352 0 6,597 Acquisition expenses 31 0 0 0 31 Other operating expenses 130,165 29,851 23,741 (3,596) 180,161 Income before income taxes $ 95,980 $ 22,770 $ 8,568 $ 0 $ 127,318 Six Months Ended June 30, 2020 Net interest income $ 181,409 $ 486 $ 110 $ 0 $ 182,005 Provision for credit losses 15,368 0 0 0 15,368 Noninterest revenues 33,672 50,429 30,352 (2,893) 111,560 Amortization of intangible assets 2,781 2,905 1,505 0 7,191 Acquisition expenses 3,741 0 0 0 3,741 Other operating expenses 123,330 30,079 23,118 (2,893) 173,634 Income before income taxes $ 69,861 $ 17,931 $ 5,839 $ 0 $ 93,631 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
ACCOUNTING POLICIES | |
Contract Balances | 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 June 30, 2021, $27.4 million of accounts receivable, including $8.3 million of unbilled fee revenue, and $2.7 million of unearned revenue was recorded in the consolidated statements of condition. 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted 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) . The updated guidance removed the requirements to identify amounts that are expected to be reclassified out of accumulated other comprehensive income and recognized as components of net periodic benefit cost in the next fiscal year, as well as the effects of a one-percentage-point change in assumed health care cost trend rates on service and interest cost and on the postretirement benefit obligation. The updated guidance added annual disclosure requirements for the weighted-average interest crediting rates for cash balance plans and other plans with interest crediting rates, and explanations for significant gains and losses related to changes in the benefit obligation for the period. This new guidance is effective retrospectively for fiscal years beginning after December 15, 2020 with early adoption permitted. The Company adopted this guidance on January 1, 2021 and determined the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . The updated guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, and clarifying and amending existing guidance to improve consistent application. This new guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted in any interim periods for which financial statements have not been issued. The Company adopted this guidance on January 1, 2021 and determined the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: 2021 2020 (000s omitted) NuVantage Steuben Consideration paid : Cash $ 2,900 $ 21,613 Community Bank System, Inc. common stock 0 76,942 Total net consideration paid 2,900 98,555 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 0 55,973 Investment securities 0 180,497 Loans, net of allowance for credit losses on PCD loans 0 339,017 Premises and equipment, net 199 7,764 Accrued interest and fees receivable 0 2,701 Other assets 0 17,675 Core deposit intangibles 0 2,928 Other intangibles 1,437 1,196 Deposits 0 (516,274) Other liabilities (174) (4,841) Other Federal Home Loan Bank borrowings 0 (6,000) Subordinated debt held by unconsolidated subsidiary trusts 0 (2,062) Total identifiable assets, net 1,462 78,574 Goodwill $ 1,438 $ 19,981 |
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 (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 |
Schedule of pro forma financial information | Pro Forma (Unaudited) Pro Forma (Unaudited) Three Months Ended Six Months Ended (000's omitted) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Total revenue, net of interest expense $ 149,576 $ 154,878 $ 304,088 $ 303,152 Net income 39,072 46,447 80,848 86,774 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair (000's omitted) Cost Gains Losses Value Cost Gains Losses Value Available-for-Sale Portfolio: U.S. Treasury and agency securities $ 3,082,187 $ 52,960 $ 110,075 $ 3,025,072 $ 2,423,236 $ 94,741 $ 16,595 $ 2,501,382 Obligations of state and political subdivisions 405,245 20,908 1 426,152 451,028 24,632 0 475,660 Government agency mortgage-backed securities 521,056 10,999 2,916 529,139 506,540 16,280 182 522,638 Corporate debt securities 3,000 94 0 3,094 4,499 137 1 4,635 Government agency collateralized mortgage obligations 28,490 796 4 29,282 42,476 1,111 10 43,577 Total available-for-sale portfolio $ 4,039,978 $ 85,757 $ 112,996 $ 4,012,739 $ 3,427,779 $ 136,901 $ 16,788 $ 3,547,892 Equity and other Securities: Equity securities, at fair value $ 251 $ 218 $ 0 $ 469 $ 251 $ 194 $ 0 $ 445 Federal Home Loan Bank common stock 7,262 0 0 7,262 7,468 0 0 7,468 Federal Reserve Bank common stock 33,916 0 0 33,916 33,916 0 0 33,916 Other equity securities, at adjusted cost 2,526 750 0 3,276 4,876 750 0 5,626 Total equity and other securities $ 43,955 $ 968 $ 0 $ 44,923 $ 46,511 $ 944 $ 0 $ 47,455 |
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 is as follows: As of June 30, 2021 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (000's omitted) # Value Losses # Value Losses # Value Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 29 $ 1,272,423 $ 110,075 0 $ 0 $ 0 29 $ 1,272,423 $ 110,075 Obligations of state and political subdivisions 4 1,651 1 0 0 0 4 1,651 1 Government agency mortgage-backed securities 126 170,661 2,914 6 1,146 2 132 171,807 2,916 Government agency collateralized mortgage obligations 3 1,804 3 3 182 1 6 1,986 4 Total available-for-sale investment portfolio 162 $ 1,446,539 $ 112,993 9 $ 1,328 $ 3 171 $ 1,447,867 $ 112,996 As of December 31, 2020 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (000's omitted) # Value Losses # Value Losses # 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 |
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 June 30, 2021, 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 Fair (000's omitted) Cost Value Due in one year or less $ 198,566 $ 199,557 Due after one through five years 768,349 796,228 Due after five years through ten years 1,018,820 1,037,749 Due after ten years 1,504,697 1,420,784 Subtotal 3,490,432 3,454,318 Government agency mortgage-backed securities 521,056 529,139 Government agency collateralized mortgage obligations 28,490 29,282 Total $ 4,039,978 $ 4,012,739 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of loans receivable, net | The segments of the Company’s loan portfolio are summarized as follows: June 30, December 31, (000’s omitted) 2021 2020 Business lending $ 3,186,487 $ 3,440,077 Consumer mortgage 2,408,499 2,401,499 Consumer indirect 1,109,504 1,021,885 Consumer direct 148,540 152,657 Home equity 391,117 399,834 Gross loans, including deferred origination costs 7,244,147 7,415,952 Allowance for credit losses (51,750) (60,869) Loans, net of allowance for credit losses $ 7,192,397 $ 7,355,083 |
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 PCD loans, by segment as of June 30, 2021: Past Due 90+ Days Past 30 – 89 Due and Total (000’s omitted) Days Still Accruing Nonaccrual Past Due Current Total Loans Business lending $ 972 $ 228 $ 49,877 $ 51,077 $ 3,135,410 $ 3,186,487 Consumer mortgage 8,645 1,259 16,025 25,929 2,382,570 2,408,499 Consumer indirect 7,110 73 0 7,183 1,102,321 1,109,504 Consumer direct 507 15 2 524 148,016 148,540 Home equity 1,077 147 2,572 3,796 387,321 391,117 Total $ 18,311 $ 1,722 $ 68,476 $ 88,509 $ 7,155,638 $ 7,244,147 The following table presents the aging of the amortized cost basis of the Company’s past due loans, including 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 |
Schedule of non-business impaired loans | All loan classes are collectively evaluated for impairment except business lending. A summary of individually evaluated impaired business loans as of June 30, 2021 and December 31, 2020 follows: June 30, December 31, (000’s omitted) 2021 2020 Loans with allowance allocation $ 25,534 $ 27,437 Loans without allowance allocation 6,529 8,138 Carrying balance 32,063 35,575 Contractual balance 34,228 38,362 Specifically allocated allowance 2,800 3,874 |
Schedule of troubled debt restructurings on financing receivables | Information regarding TDRs as of June 30, 2021 and December 31, 2020 is as follows: June 30, 2021 December 31, 2020 (000’s omitted) Nonaccrual Accruing Total Nonaccrual Accruing Total # Amount # Amount # Amount # Amount # Amount # Amount Business lending 6 $ 445 4 $ 180 10 $ 625 6 $ 529 4 $ 191 10 $ 720 Consumer mortgage 58 2,553 42 2,074 100 4,627 56 2,413 48 2,266 104 4,679 Consumer indirect 0 0 79 916 79 916 0 0 86 951 86 951 Consumer direct 0 0 17 14 17 14 0 0 23 85 23 85 Home equity 10 252 12 248 22 500 11 285 13 264 24 549 Total 74 $ 3,250 154 $ 3,432 228 $ 6,682 73 $ 3,227 174 $ 3,757 247 $ 6,984 The following table presents information related to loans modified in a TDR during the three months and six months ended June 30, 2021 and 2020. Of the loans noted in the table below, all consumer mortgage loans for the three months and six months ended June 30, 2021 and 2020 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial. Three Months Ended Three Months Ended June 30, 2021 June 30, 2020 Number of Outstanding Number of Outstanding (000’s omitted) loans modified Balance loans modified Balance Business lending 0 $ 0 0 $ 0 Consumer mortgage 7 366 3 174 Consumer indirect 9 116 3 47 Consumer direct 0 0 0 0 Home equity 0 0 1 28 Total 16 $ 482 7 $ 249 Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 Number of Outstanding Number of Outstanding (000’s omitted) loans modified Balance loans modified Balance Business lending 0 $ 0 0 $ 0 Consumer mortgage 10 474 9 738 Consumer indirect 15 177 14 151 Consumer direct 1 6 1 11 Home equity 0 0 1 28 Total 26 $ 657 25 $ 928 |
Schedule of allowance for loan losses by class | The following presents by segment the activity in the allowance for credit losses during the three months and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 Beginning Charge- Ending (000’s omitted) balance offs Recoveries Provision balance Business lending $ 27,042 $ (2) $ 255 $ (3,878) $ 23,417 Consumer mortgage 9,686 (142) 9 448 10,001 Consumer indirect 11,120 (750) 1,183 (450) 11,103 Consumer direct 2,682 (195) 213 (152) 2,548 Home equity 1,543 (17) 5 265 1,796 Unallocated 1,000 0 0 0 1,000 Purchased credit deteriorated 1,996 0 33 (144) 1,885 Allowance for credit losses – loans 55,069 (1,106) 1,698 (3,911) 51,750 Liabilities for off-balance-sheet credit exposures 1,189 0 0 (427) 762 Total allowance for credit losses $ 56,258 $ (1,106) $ 1,698 $ (4,338) $ 52,512 Three Months Ended June 30, 2020 Beginning Charge- Steuben Ending (000’s omitted) balance offs Recoveries acquisition Provision balance Business lending $ 19,489 $ (7) $ 84 $ 2,483 $ 2,155 $ 24,204 Consumer mortgage 12,430 (234) 36 146 710 13,088 Consumer indirect 13,694 (1,431) 833 183 2,587 15,866 Consumer direct 3,737 (341) 171 87 374 4,028 Home equity 2,484 (81) 12 235 40 2,690 Unallocated 772 0 0 0 228 1,000 Purchased credit deteriorated 3,046 0 48 528 (61) 3,561 Allowance for credit losses – loans 55,652 (2,094) 1,184 3,662 6,033 64,437 Liabilities for off-balance-sheet credit exposures 845 0 0 67 540 1,452 Total allowance for credit losses $ 56,497 $ (2,094) $ 1,184 $ 3,729 $ 6,573 $ 65,889 Six Months Ended June 30, 2021 Beginning Charge- Ending (000’s omitted) balance offs Recoveries Provision balance Business lending $ 28,190 $ (53) $ 322 $ (5,042) $ 23,417 Consumer mortgage 10,672 (242) 19 (448) 10,001 Consumer indirect 13,696 (2,149) 2,429 (2,873) 11,103 Consumer direct 3,207 (513) 444 (590) 2,548 Home equity 2,222 (115) 9 (320) 1,796 Unallocated 1,000 0 0 0 1,000 Purchased credit deteriorated 1,882 0 60 (57) 1,885 Allowance for credit losses – loans 60,869 (3,072) 3,283 (9,330) 51,750 Liabilities for off-balance-sheet credit exposures 1,489 0 0 (727) 762 Total allowance for credit losses $ 62,358 $ (3,072) $ 3,283 $ (10,057) $ 52,512 Six Months Ended June 30, 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 $ (183) $ 222 $ 2,483 $ 1,968 $ 24,204 Consumer mortgage 10,269 (1,051) 9,218 (420) 44 146 4,100 13,088 Consumer indirect 13,712 (997) 12,715 (3,510) 1,996 183 4,482 15,866 Consumer direct 3,255 (643) 2,612 (874) 353 87 1,850 4,028 Home equity 2,129 808 2,937 (154) 18 235 (346) 2,690 Unallocated 957 43 1,000 0 0 0 0 1,000 Purchased credit deteriorated 0 3,072 3,072 0 48 528 (87) 3,561 Purchased credit impaired 163 (163) 0 0 0 0 0 0 Allowance for credit losses – loans 49,911 1,357 51,268 (5,141) 2,681 3,662 11,967 64,437 Liabilities for off-balance-sheet credit exposures 0 1,185 1,185 0 0 67 200 1,452 Total allowance for credit losses $ 49,911 $ 2,542 $ 52,453 $ (5,141) $ 2,681 $ 3,729 $ 12,167 $ 65,889 |
Schedule of financing receivables purchased and Sold | The following table presents the carrying amounts of loans purchased and sold during the six months ended June 30, 2021 by portfolio segment: Business Consumer Consumer Consumer Home (000’s omitted) lending mortgage indirect direct equity Total Purchases $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Sales 848 10,860 0 0 0 11,708 |
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 June 30, 2021 and December 31, 2020: Revolving Loans (000’s omitted) Term Loans Amortized Cost Basis by Origination Year Amortized June 30, 2021 2021 2020 2019 2018 2017 Prior Cost Basis Total Business lending: Risk rating Pass $ 343,472 $ 439,365 $ 338,583 $ 284,580 $ 189,477 $ 661,491 $ 507,921 $ 2,764,889 Special mention 2,001 12,961 12,084 36,635 21,586 72,145 34,484 191,896 Classified 360 2,163 21,063 49,150 27,397 84,543 42,178 226,854 Doubtful 0 0 16 1,931 0 35 866 2,848 Total business lending $ 345,833 $ 454,489 $ 371,746 $ 372,296 $ 238,460 $ 818,214 $ 585,449 $ 3,186,487 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 |
All Other Loans [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Schedule of loans by credit quality indicator | Revolving Loans (000’s omitted) Term Loans Amortized Cost Basis by Origination Year Amortized June 30, 2021 2021 2020 2019 2018 2017 Prior Cost Basis Total Consumer mortgage: FICO AB Performing $ 217,537 $ 245,277 $ 204,560 $ 139,256 $ 135,992 $ 660,613 $ 0 $ 1,603,235 Nonperforming 0 171 0 261 516 2,765 0 3,713 Total FICO AB 217,537 245,448 204,560 139,517 136,508 663,378 0 1,606,948 FICO CDE Performing 58,224 128,942 94,750 73,362 64,401 346,907 21,394 787,980 Nonperforming 0 234 901 744 702 10,990 0 13,571 Total FICO CDE 58,224 129,176 95,651 74,106 65,103 357,897 21,394 801,551 Total consumer mortgage $ 275,761 $ 374,624 $ 300,211 $ 213,623 $ 201,611 $ 1,021,275 $ 21,394 $ 2,408,499 Consumer indirect: Performing $ 317,236 $ 255,939 $ 240,528 $ 148,990 $ 59,328 $ 87,410 $ 0 $ 1,109,431 Nonperforming 0 10 38 13 0 12 0 73 Total consumer indirect $ 317,236 $ 255,949 $ 240,566 $ 149,003 $ 59,328 $ 87,422 $ 0 $ 1,109,504 Consumer direct: Performing $ 37,644 $ 37,762 $ 34,503 $ 18,947 $ 7,557 $ 6,100 $ 6,010 $ 148,523 Nonperforming 0 0 0 2 0 15 0 17 Total consumer direct $ 37,644 $ 37,762 $ 34,503 $ 18,949 $ 7,557 $ 6,115 $ 6,010 $ 148,540 Home equity: Performing $ 33,503 $ 47,348 $ 42,432 $ 23,450 $ 19,224 $ 43,050 $ 179,391 $ 388,398 Nonperforming 0 56 22 107 79 722 1,733 2,719 Total home equity $ 33,503 $ 47,404 $ 42,454 $ 23,557 $ 19,303 $ 43,772 $ 181,124 $ 391,117 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 |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 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 $ (58,136) $ 11,267 $ 69,403 $ (55,572) $ 13,831 Other intangibles 91,899 (55,386) 36,513 90,462 (51,353) 39,109 Total amortizing intangibles $ 161,302 $ (113,522) $ 47,780 $ 159,865 $ (106,925) $ 52,940 |
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) Jul - Dec 2021 $ 6,229 2022 11,141 2023 9,338 2024 7,768 2025 6,550 Thereafter 6,754 Total $ 47,780 |
Schedule of components of goodwill | Shown below are the components of the Company’s goodwill at December 31, 2020 and June 30, 2021: (000’s omitted) December 31, 2020 Activity June 30, 2021 Goodwill, net $ 793,708 $ 1,184 $ 794,892 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
BENEFIT PLANS | |
Schedule of net periodic benefit cost | The net periodic benefit cost for the three and six months ended June 30, 2021 and 2020 is as follows: Pension Benefits Post-retirement Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (000’s omitted) 2021 2020 2021 2020 2021 2020 2021 2020 Service cost $ 1,480 $ 1,438 $ 2,960 $ 2,875 $ 0 $ 0 $ 0 $ 0 Interest cost 1,259 1,356 2,518 2,712 11 14 22 28 Expected return on plan assets (4,695) (3,932) (9,391) (7,864) 0 0 0 0 Amortization of unrecognized net loss 900 810 1,800 1,620 11 10 22 20 Amortization of prior service cost 94 60 189 120 (44) (44) (89) (89) Net periodic benefit $ (962) $ (268) $ (1,924) $ (537) $ (22) $ (20) $ (45) $ (41) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, (000’s omitted, except per share data) 2021 2020 2021 2020 Net income $ 47,944 $ 35,248 $ 100,794 $ 75,382 Income attributable to unvested stock-based compensation awards (127) (127) (263) (264) Income available to common shareholders $ 47,817 $ 35,121 $ 100,531 $ 75,118 Weighted-average common shares outstanding – basic 54,007 52,487 53,927 52,262 Basic earnings per share $ 0.89 $ 0.67 $ 1.86 $ 1.44 Net income $ 47,944 $ 35,248 $ 100,794 $ 75,382 Income attributable to unvested stock-based compensation awards (127) (127) (263) (264) Income available to common shareholders $ 47,817 $ 35,121 $ 100,531 $ 75,118 Weighted-average common shares outstanding – basic 54,007 52,487 53,927 52,262 Assumed exercise of stock options 462 339 455 372 Weighted-average common shares outstanding – diluted 54,469 52,826 54,382 52,634 Diluted earnings per share $ 0.88 $ 0.66 $ 1.85 $ 1.43 |
COMMITMENTS, CONTINGENT LIABI_2
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | |
Schedule of The contract amounts of commitments and contingencies | The contract amounts of commitments and contingencies are as follows: June 30, December 31, (000’s omitted) 2021 2020 Commitments to extend credit $ 1,199,804 $ 1,313,568 Standby letters of credit 35,382 39,213 Total $ 1,235,186 $ 1,352,781 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE | |
Fair Value Measured on a Recurring Basis | 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. June 30, 2021 Total Fair (000's omitted) Level 1 Level 2 Level 3 Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 2,909,475 $ 115,597 $ 0 $ 3,025,072 Obligations of state and political subdivisions 0 426,152 0 426,152 Government agency mortgage-backed securities 0 529,139 0 529,139 Corporate debt securities 0 3,094 0 3,094 Government agency collateralized mortgage obligations 0 29,282 0 29,282 Total available-for-sale investment securities 2,909,475 1,103,264 0 4,012,739 Equity securities 469 0 0 469 Mortgage loans held for sale 0 1,340 0 1,340 Commitments to originate real estate loans for sale 0 0 130 130 Forward sales commitments 0 31 0 31 Interest rate swap agreements asset 0 372 0 372 Interest rate swap agreements liability 0 (7) 0 (7) Total $ 2,909,944 $ 1,105,000 $ 130 $ 4,015,074 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 |
Assets and Liabilities Measured on a Non-Recurring Basis | The fair value information of assets and liabilities measured on a non-recurring basis presented below is not as of the period-end, but rather as of the date the fair value adjustment was recorded closest to the date presented. June 30, 2021 December 31, 2020 Total Fair Total Fair (000's omitted) Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 Value Impaired loans $ 0 $ 0 $ 21,330 $ 21,330 $ 0 $ 0 $ 25,063 $ 25,063 Other real estate owned 0 0 879 879 0 0 883 883 Mortgage servicing rights 0 0 697 697 0 0 682 682 Total $ 0 $ 0 $ 22,906 $ 22,906 $ 0 $ 0 $ 26,628 $ 26,628 |
Significant Unobservable Inputs, Fair Value Valuation Techniques | 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. The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis are as follows: Significant Unobservable Input Fair Value at Range (000's omitted, except per loan data) June 30, 2021 Valuation Technique Significant Unobservable Inputs (Weighted Average) Impaired loans $ 21,330 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 78.7% (53.8%) Other real estate owned 879 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 51.1% (34.5%) Commitments to originate real estate loans for sale 130 Discounted cash flow Embedded servicing value 1.0 % Mortgage servicing rights 697 Discounted cash flow Weighted average constant prepayment rate 16.9% - 49.1% (21.8%) Weighted average discount rate 2.2% - 2.8% (2.7%) Adequate compensation $ 7/loan Significant Unobservable Input Fair Value at Range (000's omitted, except per loan data) December 31, 2020 Valuation Technique Significant Unobservable 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 |
Carrying Amounts and Estimated Fair Values of Other Financial Instruments | 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 carrying amounts and estimated fair values of the Company’s other financial instruments that are not accounted for at fair value at June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair (000's omitted) Value Value Value Value Financial assets: Net loans $ 7,192,397 $ 7,563,546 $ 7,355,083 $ 7,655,044 Financial liabilities: Deposits 12,339,025 12,349,413 11,224,974 11,239,628 Securities sold under agreement to repurchase, short-term 194,887 194,887 284,008 284,008 Other Federal Home Loan Bank borrowings 2,936 2,993 6,658 6,758 Subordinated notes payable 3,290 3,290 3,303 3,303 Subordinated debt held by unconsolidated subsidiary trusts 0 0 77,320 77,320 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVE INSTRUMENTS | |
Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges | As of June 30, 2021 and December 31, 2020, 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 Carrying Amount of the Hedged Hedging Adjustment Included in the Line Item in the Consolidated Assets Carrying Amount of the Hedged Assets Statement of Condition in Which June 30, December 31, June 30, December 31, the Hedged Item Is Included 2021 2020 2021 2020 Loans $ 5,809 $ 5,675 $ (365) $ (498) |
Fair Value of Derivative Instruments | Fair values of derivative instruments as of June 30, 2021 and December 31, 2020 are as follows: (000’s omitted) June 30, 2021 Derivative Assets Derivative Liabilities Consolidated Statement Fair Consolidated Statement of Fair of Condition Location Value Condition Location Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets $ 365 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets 7 Accrued interest and other liabilities $ 7 Commitments to originate real estate loans for sale Other assets 130 Forward sales commitments Other assets 31 Total derivatives $ 533 $ 7 (000’s omitted) December 31, 2020 Derivative Assets Derivative Liabilities Consolidated Statement Fair Consolidated Statement of Fair of Condition Location Value Condition Location 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 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Three Months Ended June 30, 2021 Net interest income $ 92,033 $ 65 $ 7 $ 0 $ 92,105 Provision for credit losses (4,338) 0 0 0 (4,338) Noninterest revenues 16,357 27,994 16,816 (1,707) 59,460 Amortization of intangible assets 1,240 1,327 679 0 3,246 Acquisition expenses 4 0 0 0 4 Other operating expenses 65,158 14,846 11,996 (1,707) 90,293 Income before income taxes $ 46,326 $ 11,886 $ 4,148 $ 0 $ 62,360 Assets $ 14,588,075 $ 235,141 $ 78,770 $ (100,699) $ 14,801,287 Goodwill $ 689,867 $ 83,275 $ 21,750 $ 0 $ 794,892 Core deposit intangibles & Other intangibles $ 11,267 $ 29,370 $ 7,143 $ 0 $ 47,780 Three Months Ended June 30, 2020 Net interest income $ 91,645 $ 246 $ 60 $ 0 $ 91,951 Provision for credit losses 9,774 0 0 0 9,774 Noninterest revenues 14,991 24,504 14,817 (1,374) 52,938 Amortization of intangible assets 1,364 1,411 749 0 3,524 Acquisition expenses 3,372 0 0 0 3,372 Other operating expenses 59,130 14,948 11,303 (1,374) 84,007 Income before income taxes $ 32,996 $ 8,391 $ 2,825 $ 0 $ 44,212 Assets $ 13,272,929 $ 216,122 $ 78,022 $ (122,856) $ 13,444,217 Goodwill $ 689,128 $ 83,275 $ 20,312 $ 0 $ 792,715 Core deposit intangibles & Other intangibles $ 16,565 $ 34,870 $ 8,611 $ 0 $ 60,046 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) shares in Thousands, $ in Thousands | Aug. 02, 2021USD ($) | Jul. 01, 2021USD ($) | Jun. 03, 2021USD ($) | Jun. 12, 2020USD ($)Officecountryshares | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Acquisitions [Abstract] | ||||||||
Cash | $ 2,900 | $ (34,360) | ||||||
Goodwill | $ 794,892 | 794,892 | $ 792,715 | $ 793,708 | ||||
NuVantage Insurance, Inc. [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Purchase price in cash | $ 2,900 | |||||||
Customer List Intangibles | 1,400 | |||||||
Goodwill | $ 1,500 | |||||||
Steuben Trust Corporation [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Cash | $ 21,600 | 21,613 | ||||||
Issuance of common shares (in shares) | shares | 1,360 | |||||||
Purchase price of acquisition | $ 98,600 | 98,555 | ||||||
Deposits | 516,300 | 516,274 | ||||||
Goodwill | 20,000 | 19,981 | ||||||
Assets acquired | 607,800 | |||||||
Loans | 339,700 | 339,017 | ||||||
Investment securities | $ 180,500 | $ 180,497 | ||||||
Revenue earned | 3,300 | 6,500 | ||||||
Direct expenses | 1,200 | 2,500 | ||||||
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 | |||||||
Steuben Trust Corporation [Member] | Western New York State [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Number of counties where the bank has facilities | country | 4 | |||||||
Number of new counties where the bank has extended footprints | country | 2 | |||||||
Number of branch locations | Office | 11 | |||||||
Subsequent event | Fringe Benefits Design of Minnesota, Inc ("FBD") [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Purchase price of acquisition | $ 15,300 | |||||||
Contingent consideration | $ 2,700 | |||||||
Subsequent event | Thomas Gregory Associates [Member] | ||||||||
Acquisitions [Abstract] | ||||||||
Purchase price of acquisition | $ 11,600 | |||||||
Contingent consideration | $ 3,400 |
ACQUISITIONS - Estimated Fair V
ACQUISITIONS - Estimated Fair Value of Assets Acquired and Liabilities assumed (Details) - USD ($) $ in Thousands | Jun. 12, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Consideration paid : | ||||
Cash | $ 2,900 | $ (34,360) | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Goodwill | 794,892 | $ 792,715 | $ 793,708 | |
Steuben Trust Corporation [Member] | ||||
Consideration paid : | ||||
Cash | $ 21,600 | 21,613 | ||
Community Bank System, Inc. common stock | 76,942 | |||
Total net consideration paid | 98,600 | 98,555 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 55,973 | |||
Investment securities | 180,500 | 180,497 | ||
Loans, net of allowance for credit losses on PCD loans | 339,700 | 339,017 | ||
Premises and equipment, net | 7,764 | |||
Accrued interest and fees receivable | 2,701 | |||
Other assets | 17,675 | |||
Deposits | (516,300) | (516,274) | ||
Other liabilities | (4,841) | |||
Other Federal Home Loan Bank borrowings | (6,000) | |||
Subordinated debt held by unconsolidated subsidiary trusts | 2,062 | |||
Total identifiable assets, net | 78,574 | |||
Goodwill | $ 20,000 | 19,981 | ||
Steuben Trust Corporation [Member] | Core deposit intangibles [Member] | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Intangibles | 2,928 | |||
Steuben Trust Corporation [Member] | Other intangibles [Member] | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Intangibles | $ 1,196 | |||
NuVantage Insurance Corporation [Member] | ||||
Consideration paid : | ||||
Cash | 2,900 | |||
Community Bank System, Inc. common stock | 0 | |||
Total net consideration paid | 2,900 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | 0 | |||
Investment securities | 0 | |||
Loans, net of allowance for credit losses on PCD loans | 0 | |||
Premises and equipment, net | 199 | |||
Accrued interest and fees receivable | 0 | |||
Other assets | 0 | |||
Deposits | 0 | |||
Other liabilities | (174) | |||
Other Federal Home Loan Bank borrowings | 0 | |||
Subordinated debt held by unconsolidated subsidiary trusts | 0 | |||
Total identifiable assets, net | 1,462 | |||
Goodwill | 1,438 | |||
NuVantage Insurance Corporation [Member] | Core deposit intangibles [Member] | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Intangibles | 0 | |||
NuVantage Insurance Corporation [Member] | Other intangibles [Member] | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Intangibles | $ 1,437 |
ACQUISITIONS - Summary of Loans
ACQUISITIONS - Summary of Loans Acquired (Details) - Steuben Trust Corporation [Member] $ in Thousands | Jun. 12, 2020USD ($) |
Acquired Deteriorated | |
Summary of loans acquired [Abstract] | |
Par value of loans at acquisition | $ 35,906 |
Allowance for credit losses at acquisition | (668) |
Non-credit premium at acquisition | 103 |
Fair value of acquired loans | 35,341 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Summary of loans acquired [Abstract] | ||||
Merger and acquisition integration related (recoveries) expenses | $ 4 | $ 3,372 | $ 31 | $ 3,741 |
Steuben Trust Corporation [Member] | Other intangibles [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Intangible asset useful life (amortization period) | 8 years | |||
NuVantage Insurance Corporation [Member] | Core deposit intangibles [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Intangible asset useful life (amortization period) | 8 years |
ACQUISITIONS - Supplemental Pro
ACQUISITIONS - Supplemental Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Pro Forma Financial Information [Abstract] | ||||
Acquisitions-related expenses | $ 3,300 | $ 3,600 | ||
Total revenue, net of interest expense, pro forma | 149,576 | $ 154,878 | 304,088 | $ 303,152 |
Net income, pro forma | $ 39,072 | $ 46,447 | $ 80,848 | $ 86,774 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Contract Balances | ||
Accounts receivable | $ 27.4 | $ 30.3 |
Unbilled fee revenue | 8.3 | 7.7 |
Unearned revenue | $ 2.7 | $ 1.4 |
INVESTMENT SECURITIES - Availab
INVESTMENT SECURITIES - Available-for-Sale Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale Portfolio [Abstract] | ||
Amortized cost | $ 4,039,978 | $ 3,427,779 |
Gross unrealized gains | 85,757 | 136,901 |
Gross unrealized losses | 112,996 | 16,788 |
Fair value | 4,012,739 | 3,547,892 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 4,039,978 | |
Fair value | 4,012,739 | |
U.S. Treasury and agency securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 3,082,187 | 2,423,236 |
Gross unrealized gains | 52,960 | 94,741 |
Gross unrealized losses | 110,075 | 16,595 |
Fair value | 3,025,072 | 2,501,382 |
Obligations of state and political subdivisions | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 405,245 | 451,028 |
Gross unrealized gains | 20,908 | 24,632 |
Gross unrealized losses | 1 | 0 |
Fair value | 426,152 | 475,660 |
Government agency mortgage-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 521,056 | 506,540 |
Gross unrealized gains | 10,999 | 16,280 |
Gross unrealized losses | 2,916 | 182 |
Fair value | 529,139 | 522,638 |
Corporate debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 3,000 | 4,499 |
Gross unrealized gains | 94 | 137 |
Gross unrealized losses | 0 | 1 |
Fair value | 3,094 | 4,635 |
Government agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 28,490 | 42,476 |
Gross unrealized gains | 796 | 1,111 |
Gross unrealized losses | 4 | 10 |
Fair value | $ 29,282 | $ 43,577 |
INVESTMENT SECURITIES - Equity
INVESTMENT SECURITIES - Equity and Other Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Equity and Other Securities [Abstract] | ||
Amortized cost | $ 43,955 | $ 46,511 |
Gross unrealized gains | 968 | 944 |
Gross unrealized losses | 0 | 0 |
Equity and other securities (cost of $43,955 and $46,511, respectively) | 44,923 | 47,455 |
Equity Securities, at Fair Value [Abstract] | ||
Amortized cost | 251 | 251 |
Gross unrealized gains | 218 | 194 |
Gross unrealized losses | 0 | 0 |
Fair value | 469 | 445 |
Federal Home Loan Bank Common Stock [Member] | ||
Other Equity Securities, at Adjusted Cost [Abstract] | ||
Amortized cost | 7,262 | 7,468 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 7,262 | 7,468 |
Federal Reserve Bank Stock [Member] | ||
Other Equity Securities, at Adjusted Cost [Abstract] | ||
Amortized cost | 33,916 | 33,916 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 33,916 | 33,916 |
Other Equity Securities [Member] | ||
Other Equity Securities, at Adjusted Cost [Abstract] | ||
Amortized cost | 2,526 | 4,876 |
Gross unrealized gains | 750 | 750 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 3,276 | $ 5,626 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | 162 | 117 |
12 months or longer | 9 | 3 |
Total | 171 | 120 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 1,446,539 | $ 913,612 |
12 months or longer | 1,328 | 14 |
Total | 1,447,867 | 913,626 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 112,993 | 16,788 |
12 months or longer | 3 | 0 |
Total | 112,996 | $ 16,788 |
Available-for-sale, allowance for credit losses | 0 | |
Accrued interest and fees receivable | 19,000 | |
Available-for-sale Securities [Member] | ||
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Accrued interest and fees receivable | $ 14,500 | |
U.S. Treasury and agency securities | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | 29 | 13 |
12 months or longer | 0 | 0 |
Total | 29 | 13 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 1,272,423 | $ 831,015 |
12 months or longer | 0 | 0 |
Total | 1,272,423 | 831,015 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 110,075 | 16,595 |
12 months or longer | 0 | 0 |
Total | $ 110,075 | $ 16,595 |
Obligations of state and political subdivisions | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | 4 | 1 |
12 months or longer | 0 | 0 |
Total | 4 | 1 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 1,651 | $ 358 |
12 months or longer | 0 | 0 |
Total | 1,651 | 358 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 1 | 0 |
12 months or longer | 0 | 0 |
Total | $ 1 | $ 0 |
Government agency mortgage-backed securities | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | 126 | 89 |
12 months or longer | 6 | 2 |
Total | 132 | 91 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 170,661 | $ 75,992 |
12 months or longer | 1,146 | 14 |
Total | 171,807 | 76,006 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 2,914 | 182 |
12 months or longer | 2 | 0 |
Total | $ 2,916 | $ 182 |
Corporate debt securities | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | 1 | |
12 months or longer | 0 | |
Total | 1 | |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 1,001 | |
12 months or longer | 0 | |
Total | 1,001 | |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 1 | |
12 months or longer | 0 | |
Total | $ 1 | |
Government agency collateralized mortgage obligations | ||
Available-for-Sale Securities in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | 3 | 13 |
12 months or longer | 3 | 1 |
Total | 6 | 14 |
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 1,804 | $ 5,246 |
12 months or longer | 182 | 0 |
Total | 1,986 | 5,246 |
Available-for-Sale Securities, in Unrealized Loss Position, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 3 | 10 |
12 months or longer | 1 | 0 |
Total | $ 4 | $ 10 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Due in one year or less | $ 198,566 | |
Due after one through five years | 768,349 | |
Due after five years through ten years | 1,018,820 | |
Due after ten years | 1,504,697 | |
Subtotal | 3,490,432 | |
Amortized cost | 4,039,978 | |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Due in one year or less | 199,557 | |
Due after one through five years | 796,228 | |
Due after five years through ten years | 1,037,749 | |
Due after ten years | 1,420,784 | |
Subtotal | 3,454,318 | |
Fair value | 4,012,739 | |
Government agency mortgage-backed securities | ||
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Without single maturity date | 521,056 | |
Amortized cost | 521,056 | $ 506,540 |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Without single maturity date | 529,139 | |
Fair value | 529,139 | 522,638 |
Government agency collateralized mortgage obligations | ||
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Without single maturity date | 28,490 | |
Amortized cost | 28,490 | 42,476 |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Without single maturity date | 29,282 | |
Fair value | $ 29,282 | $ 43,577 |
INVESTMENT SECURITIES - Inves_2
INVESTMENT SECURITIES - Investment Securities Pledged as Collateral (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Investment Securities Pledged as Collateral | ||
Investment securities pledged to collateralize certain deposits and borrowings | $ 2,430 | $ 2,030 |
U.S. Treasury and agency securities | Securities Sold under Agreements to Repurchase [Member] | ||
Investment Securities Pledged as Collateral | ||
Investment securities pledged to collateralize certain deposits and borrowings | $ 475 | $ 473.4 |
INVESTMENT SECURITIES - Inves_3
INVESTMENT SECURITIES - Investment Securities Pledged as Collateral (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Pledged Financial Instruments, Not Separately Reported, Securities, by Type of Security [Abstract] | ||
Investment securities pledged to collateralize certain deposits and borrowings | $ 2,430 | $ 2,030 |
U.S. Treasury and agency securities | 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 | $ 475 | $ 473.4 |
LOANS - Loan Summary (Details)
LOANS - Loan Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans receivable, net | ||||||
Gross loans, including deferred origination costs | $ 7,244,147 | $ 7,415,952 | ||||
Allowance for credit losses | (51,750) | $ (55,069) | (60,869) | $ (64,437) | $ (55,652) | $ (49,911) |
Net loans | 7,192,397 | 7,355,083 | ||||
Commercial Portfolio Segment [Member] | Business Lending [Member] | ||||||
Loans receivable, net | ||||||
Gross loans, including deferred origination costs | 3,186,487 | 3,440,077 | ||||
Allowance for credit losses | (23,417) | (27,042) | (28,190) | (24,204) | (19,489) | (19,426) |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | ||||||
Loans receivable, net | ||||||
Gross loans, including deferred origination costs | 2,408,499 | |||||
Allowance for credit losses | (10,001) | (9,686) | (10,672) | (13,088) | (12,430) | (10,269) |
Consumer Portfolio Segment [Member] | Consumer Mortgage [Member] | ||||||
Loans receivable, net | ||||||
Gross loans, including deferred origination costs | 2,408,499 | 2,401,499 | ||||
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | ||||||
Loans receivable, net | ||||||
Gross loans, including deferred origination costs | 1,109,504 | 1,021,885 | ||||
Allowance for credit losses | (11,103) | (11,120) | (13,696) | (15,866) | (13,694) | (13,712) |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | ||||||
Loans receivable, net | ||||||
Gross loans, including deferred origination costs | 148,540 | 152,657 | ||||
Allowance for credit losses | (2,548) | (2,682) | (3,207) | (4,028) | (3,737) | (3,255) |
Consumer Portfolio Segment [Member] | Home Equity [Member] | ||||||
Loans receivable, net | ||||||
Gross loans, including deferred origination costs | 391,117 | 399,834 | ||||
Allowance for credit losses | $ (1,796) | $ (1,543) | $ (2,222) | $ (2,690) | $ (2,484) | $ (2,129) |
LOANS - Credit Quality By Past
LOANS - Credit Quality By Past Due Status (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Aged analysis of the company's loans | ||
Total loans | $ 7,244,147 | $ 7,415,952 |
Interest income on nonaccrual loans | 0 | |
Legacy Loan [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 3,922 | |
Nonaccrual | 72,929 | |
Total past due | 111,610 | |
Current | 7,304,342 | |
Total loans | 7,415,952 | |
Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 34,759 | |
Acquired Loans [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 1,722 | |
Nonaccrual | 68,476 | |
Total past due | 88,509 | |
Current | 7,155,638 | |
Total loans | 7,244,147 | |
Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 18,311 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 228 | |
Nonaccrual | 49,877 | |
Total past due | 51,077 | |
Current | 3,135,410 | |
Total loans | 3,186,487 | 3,440,077 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 972 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 59 | |
Nonaccrual | 55,709 | |
Total past due | 60,664 | |
Current | 3,379,413 | |
Total loans | 3,440,077 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 4,896 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 1,259 | |
Nonaccrual | 16,025 | |
Total past due | 25,929 | |
Current | 2,382,570 | |
Total loans | 2,408,499 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 8,645 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 3,051 | |
Nonaccrual | 14,970 | |
Total past due | 31,257 | |
Current | 2,370,242 | |
Total loans | 2,401,499 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 13,236 | |
Consumer Portfolio Segment [Member] | Consumer Mortgage [Member] | ||
Aged analysis of the company's loans | ||
Total loans | 2,408,499 | 2,401,499 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 73 | |
Nonaccrual | 0 | |
Total past due | 7,183 | |
Current | 1,102,321 | |
Total loans | 1,109,504 | 1,021,885 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 7,110 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 219 | |
Nonaccrual | 1 | |
Total past due | 13,381 | |
Current | 1,008,504 | |
Total loans | 1,021,885 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 13,161 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 15 | |
Nonaccrual | 2 | |
Total past due | 524 | |
Current | 148,016 | |
Total loans | 148,540 | 152,657 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 507 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 28 | |
Nonaccrual | 3 | |
Total past due | 1,201 | |
Current | 151,456 | |
Total loans | 152,657 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | 1,170 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 147 | |
Nonaccrual | 2,572 | |
Total past due | 3,796 | |
Current | 387,321 | |
Total loans | 391,117 | 399,834 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | $ 1,077 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loan [Member] | ||
Aged analysis of the company's loans | ||
90 + days past due and still accruing | 565 | |
Nonaccrual | 2,246 | |
Total past due | 5,107 | |
Current | 394,727 | |
Total loans | 399,834 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loan [Member] | Past Due 30 - 89 Days [Member] | ||
Aged analysis of the company's loans | ||
Total past due | $ 2,296 |
LOANS - Amount of Business Lend
LOANS - Amount of Business Lending Loans by Credit Quality Categories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Business Lending [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | $ 345,833 | |
2020 | 454,489 | $ 881,201 |
2019 | 371,746 | 391,969 |
2018 | 372,296 | 373,807 |
2017 | 238,460 | 263,820 |
2016 | 275,730 | |
Prior | 818,214 | 660,921 |
Revolving Loans Amortized Cost Basis | 585,449 | 592,629 |
Total | 3,186,487 | 3,440,077 |
Business Lending [Member] | Pass [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 343,472 | |
2020 | 439,365 | 860,178 |
2019 | 338,583 | 351,350 |
2018 | 284,580 | 312,087 |
2017 | 189,477 | 217,138 |
2016 | 231,453 | |
Prior | 661,491 | 543,999 |
Revolving Loans Amortized Cost Basis | 507,921 | 483,018 |
Total | 2,764,889 | 2,999,223 |
Business Lending [Member] | Special Mention [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 2,001 | |
2020 | 12,961 | 14,687 |
2019 | 12,084 | 36,041 |
2018 | 36,635 | 28,410 |
2017 | 21,586 | 21,875 |
2016 | 29,386 | |
Prior | 72,145 | 51,657 |
Revolving Loans Amortized Cost Basis | 34,484 | 52,732 |
Total | 191,896 | 234,788 |
Business Lending [Member] | Classified [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 360 | |
2020 | 2,163 | 6,336 |
2019 | 21,063 | 4,560 |
2018 | 49,150 | 30,422 |
2017 | 27,397 | 24,807 |
2016 | 14,891 | |
Prior | 84,543 | 65,157 |
Revolving Loans Amortized Cost Basis | 42,178 | 56,000 |
Total | 226,854 | 202,173 |
Business Lending [Member] | Doubtful [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 0 | |
2020 | 0 | 0 |
2019 | 16 | 18 |
2018 | 1,931 | 2,888 |
2017 | 0 | 0 |
2016 | 0 | |
Prior | 35 | 108 |
Revolving Loans Amortized Cost Basis | 866 | 879 |
Total | 2,848 | 3,893 |
Consumer Mortgage [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 275,761 | |
2020 | 374,624 | 375,637 |
2019 | 300,211 | 330,825 |
2018 | 213,623 | 248,468 |
2017 | 201,611 | 240,217 |
2016 | 246,256 | |
Prior | 1,021,275 | 942,393 |
Revolving Loans Amortized Cost Basis | 21,394 | 17,703 |
Total | 2,408,499 | 2,401,499 |
Consumer Mortgage [Member] | FICO AB [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 217,537 | |
2020 | 245,448 | 260,588 |
2019 | 204,560 | 227,027 |
2018 | 139,517 | 166,913 |
2017 | 136,508 | 164,051 |
2016 | 161,256 | |
Prior | 663,378 | 617,685 |
Revolving Loans Amortized Cost Basis | 0 | 321 |
Total | 1,606,948 | 1,597,841 |
Consumer Mortgage [Member] | FICO AB [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 217,537 | |
2020 | 245,277 | 260,588 |
2019 | 204,560 | 227,027 |
2018 | 139,256 | 166,638 |
2017 | 135,992 | 163,653 |
2016 | 160,911 | |
Prior | 660,613 | 614,976 |
Revolving Loans Amortized Cost Basis | 0 | 321 |
Total | 1,603,235 | 1,594,114 |
Consumer Mortgage [Member] | FICO AB [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 0 | |
2020 | 171 | 0 |
2019 | 0 | 0 |
2018 | 261 | 275 |
2017 | 516 | 398 |
2016 | 345 | |
Prior | 2,765 | 2,709 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 3,713 | 3,727 |
Consumer Mortgage [Member] | FICO CDE [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 58,224 | |
2020 | 129,176 | 115,049 |
2019 | 95,651 | 103,798 |
2018 | 74,106 | 81,555 |
2017 | 65,103 | 76,166 |
2016 | 85,000 | |
Prior | 357,897 | 324,708 |
Revolving Loans Amortized Cost Basis | 21,394 | 17,382 |
Total | 801,551 | 803,658 |
Consumer Mortgage [Member] | FICO CDE [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 58,224 | |
2020 | 128,942 | 115,049 |
2019 | 94,750 | 102,788 |
2018 | 73,362 | 80,973 |
2017 | 64,401 | 75,289 |
2016 | 83,214 | |
Prior | 346,907 | 314,668 |
Revolving Loans Amortized Cost Basis | 21,394 | 17,382 |
Total | 787,980 | 789,363 |
Consumer Mortgage [Member] | FICO CDE [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 0 | |
2020 | 234 | 0 |
2019 | 901 | 1,010 |
2018 | 744 | 582 |
2017 | 702 | 877 |
2016 | 1,786 | |
Prior | 10,990 | 10,040 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 13,571 | 14,295 |
Consumer Indirect [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 317,236 | |
2020 | 255,949 | 303,522 |
2019 | 240,566 | 305,953 |
2018 | 149,003 | 202,455 |
2017 | 59,328 | 86,514 |
2016 | 61,465 | |
Prior | 87,422 | 61,976 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,109,504 | 1,021,885 |
Consumer Indirect [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 317,236 | |
2020 | 255,939 | 303,471 |
2019 | 240,528 | 305,901 |
2018 | 148,990 | 202,373 |
2017 | 59,328 | 86,497 |
2016 | 61,449 | |
Prior | 87,410 | 61,975 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,109,431 | 1,021,666 |
Consumer Indirect [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 0 | |
2020 | 10 | 51 |
2019 | 38 | 52 |
2018 | 13 | 82 |
2017 | 0 | 17 |
2016 | 16 | |
Prior | 12 | 1 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 73 | 219 |
Consumer Direct [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 37,644 | |
2020 | 37,762 | 49,182 |
2019 | 34,503 | 47,011 |
2018 | 18,949 | 27,874 |
2017 | 7,557 | 12,331 |
2016 | 5,232 | |
Prior | 6,115 | 4,149 |
Revolving Loans Amortized Cost Basis | 6,010 | 6,878 |
Total | 148,540 | 152,657 |
Consumer Direct [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 37,644 | |
2020 | 37,762 | 49,181 |
2019 | 34,503 | 46,992 |
2018 | 18,947 | 27,872 |
2017 | 7,557 | 12,326 |
2016 | 5,232 | |
Prior | 6,100 | 4,146 |
Revolving Loans Amortized Cost Basis | 6,010 | 6,878 |
Total | 148,523 | 152,627 |
Consumer Direct [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 0 | |
2020 | 0 | 1 |
2019 | 0 | 19 |
2018 | 2 | 2 |
2017 | 0 | 5 |
2016 | 0 | |
Prior | 15 | 3 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 17 | 30 |
Home Equity [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 33,503 | |
2020 | 47,404 | 48,145 |
2019 | 42,454 | 48,804 |
2018 | 23,557 | 28,147 |
2017 | 19,303 | 23,628 |
2016 | 18,011 | |
Prior | 43,772 | 36,390 |
Revolving Loans Amortized Cost Basis | 181,124 | 196,709 |
Total | 391,117 | 399,834 |
Home Equity [Member] | Performing [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 33,503 | |
2020 | 47,348 | 48,145 |
2019 | 42,432 | 48,780 |
2018 | 23,450 | 28,074 |
2017 | 19,224 | 23,524 |
2016 | 17,828 | |
Prior | 43,050 | 35,900 |
Revolving Loans Amortized Cost Basis | 179,391 | 194,773 |
Total | 388,398 | 397,024 |
Home Equity [Member] | Nonperforming Financial Instruments [Member] | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 0 | |
2020 | 56 | 0 |
2019 | 22 | 24 |
2018 | 107 | 73 |
2017 | 79 | 104 |
2016 | 183 | |
Prior | 722 | 490 |
Revolving Loans Amortized Cost Basis | 1,733 | 1,936 |
Total | $ 2,719 | $ 2,810 |
LOANS - Summary of Impaired Loa
LOANS - Summary of Impaired Loans, Excluding Purchased Impaired (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Impaired loans | |||||
Loans with allowance allocation | $ 25,534 | $ 25,534 | $ 27,437 | ||
Loans without allowance allocation | 6,529 | 6,529 | 8,138 | ||
Carrying balance | 32,063 | 32,063 | 35,575 | ||
Contractual balance | 34,228 | 34,228 | 38,362 | ||
Specifically allocated allowance | 2,800 | 2,800 | $ 3,874 | ||
Average carrying balance of individually evaluated impaired loans | $ 32,900 | $ 1,400 | 34,600 | $ 1,800 | |
Interest income on individually evaluated impaired loans | $ 0 | $ 0 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings (TDRs) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($)loanborrower | Jun. 30, 2020USD ($)loan | Dec. 31, 2020USD ($)loanborrower | |
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 228 | 247 | |
TDRs, amount | $ 6,682 | $ 6,984 | |
Loans modified in TDR during the year, number | loan | 16 | 7 | |
Loans modified in TDR during the year, amount | $ 482 | $ 249 | |
Number of borrowers representing $75.6 million in outstanding loan balances | borrower | 12 | ||
Outstanding loan balances of 47 number of borrowers | $ 2,400 | ||
Percentage of total loan outstanding | 0.03% | 0.90% | |
Number of business borrowers representing $75.1 million in outstanding loan balances | borrower | 8 | ||
Outstanding loan balances of 42 number of business borrowers | $ 2,000 | ||
Number of consumer borrowers representing $0.5 million in outstanding loan balances | borrower | 4 | ||
Outstanding loan balances of 5 number of consumer borrowers | $ 400 | ||
Number of borrowers representing $66.5 million in outstanding loan balances | borrower | 74 | ||
Outstanding loan balances of 74 number of borrowers | $ 66,500 | ||
Number of borrowers representing $65.7 million in outstanding loan balances | borrower | 63 | ||
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 | ||
Minimum [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
Threshold balance of loan individually evaluated for impairment | 500 | ||
Maximum [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
Threshold balance of TDR loans collectively included in general loan loss allocation and qualitative review | $ 500 | ||
Nonaccrual [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 74 | 73 | |
TDRs, amount | $ 3,250 | $ 3,227 | |
Accruing [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 154 | 174 | |
TDRs, amount | $ 3,432 | $ 3,757 | |
Commercial Portfolio Segment [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
Loans modified in TDR during the year, number | loan | 26 | 25 | |
Loans modified in TDR during the year, amount | $ 657 | $ 928 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 10 | 10 | |
TDRs, amount | $ 625 | $ 720 | |
Loans modified in TDR during the year, number | loan | 0 | 0 | |
Loans modified in TDR during the year, amount | $ 0 | $ 0 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Nonaccrual [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 6 | 6 | |
TDRs, amount | $ 445 | $ 529 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Accruing [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 4 | 4 | |
TDRs, amount | $ 180 | $ 191 | |
Commercial Portfolio Segment [Member] | Consumer Mortgage [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
Loans modified in TDR during the year, number | loan | 10 | 9 | |
Loans modified in TDR during the year, amount | $ 474 | $ 738 | |
Commercial Portfolio Segment [Member] | Consumer Indirect [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
Loans modified in TDR during the year, number | loan | 15 | 14 | |
Loans modified in TDR during the year, amount | $ 177 | $ 151 | |
Commercial Portfolio Segment [Member] | Consumer Direct [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
Loans modified in TDR during the year, number | loan | 1 | 1 | |
Loans modified in TDR during the year, amount | $ 6 | $ 11 | |
Commercial Portfolio Segment [Member] | Home Equity [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
Loans modified in TDR during the year, number | loan | 0 | 1 | |
Loans modified in TDR during the year, amount | $ 0 | $ 28 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 100 | 104 | |
TDRs, amount | $ 4,627 | $ 4,679 | |
Loans modified in TDR during the year, number | loan | 7 | 3 | |
Loans modified in TDR during the year, amount | $ 366 | $ 174 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Nonaccrual [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 58 | 56 | |
TDRs, amount | $ 2,553 | $ 2,413 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Accruing [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 42 | 48 | |
TDRs, amount | $ 2,074 | $ 2,266 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 79 | 86 | |
TDRs, amount | $ 916 | $ 951 | |
Loans modified in TDR during the year, number | loan | 9 | 3 | |
Loans modified in TDR during the year, amount | $ 116 | $ 47 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Nonaccrual [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 0 | 0 | |
TDRs, amount | $ 0 | $ 0 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Accruing [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 79 | 86 | |
TDRs, amount | $ 916 | $ 951 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 17 | 23 | |
TDRs, amount | $ 14 | $ 85 | |
Loans modified in TDR during the year, number | loan | 0 | 0 | |
Loans modified in TDR during the year, amount | $ 0 | $ 0 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Nonaccrual [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 0 | 0 | |
TDRs, amount | $ 0 | $ 0 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Accruing [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 17 | 23 | |
TDRs, amount | $ 14 | $ 85 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 22 | 24 | |
TDRs, amount | $ 500 | $ 549 | |
Loans modified in TDR during the year, number | loan | 0 | 1 | |
Loans modified in TDR during the year, amount | $ 0 | $ 28 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Nonaccrual [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 10 | 11 | |
TDRs, amount | $ 252 | $ 285 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Accruing [Member] | |||
Troubled Debt Restructurings (TDRs) | |||
TDRs, number | loan | 12 | 13 | |
TDRs, amount | $ 248 | $ 264 |
LOANS - Allowance for Credit Lo
LOANS - Allowance for Credit Losses (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | $ 55,069 | $ 55,652 | $ 60,869 | $ 49,911 | $ 49,911 |
Charge-offs | (1,106) | (2,094) | (3,072) | ||
Recoveries | 1,698 | 1,184 | 3,283 | ||
Steuben acquisition | 3,662 | ||||
Provision | (3,911) | 6,033 | (9,330) | ||
Balance, end of period | 51,750 | 64,437 | 51,750 | 64,437 | 60,869 |
Liabilities for off-balance-sheet credit exposures [Roll Forward] | |||||
Beginning balance | 1,189 | 845 | 1,489 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Steuben acquisition | 67 | ||||
Provision | (427) | 540 | (727) | ||
Ending balance | 762 | 1,452 | 762 | 1,452 | 1,489 |
Total allowance for credit losses [Roll Forward] | |||||
Beginning balance | 56,258 | 56,497 | 62,358 | 49,911 | 49,911 |
Charge-offs | (1,106) | (2,094) | (3,072) | ||
Recoveries | 1,698 | 1,184 | 3,283 | ||
Steuben acquisition | 3,729 | ||||
Provision | (4,338) | 6,573 | (10,057) | ||
Ending balance | $ 52,512 | 65,889 | $ 52,512 | 65,889 | $ 62,358 |
Allowance for Credit Losses | |||||
Allowance for credit losses to total loans ratio | 0.71 | 0.71 | |||
Basis points lower level | 0.15 | 0.11 | |||
Accrued interest and fees receivable | $ 19,000 | $ 19,000 | |||
Minimum [Member] | COVID-19 [Member] | |||||
Allowance for Credit Losses | |||||
Percentage of peak unemployment | 3.00% | ||||
Maximum [Member] | COVID-19 [Member] | |||||
Allowance for Credit Losses | |||||
Percentage of peak unemployment | 9.00% | ||||
ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 51,268 | $ 51,268 | |||
Charge-offs | (5,141) | ||||
Recoveries | 2,681 | ||||
Steuben acquisition | 3,662 | ||||
Provision | 11,967 | ||||
Balance, end of period | 64,437 | 64,437 | |||
Liabilities for off-balance-sheet credit exposures [Roll Forward] | |||||
Beginning balance | 1,185 | 1,185 | |||
Charge-offs | 0 | ||||
Recoveries | 0 | ||||
Steuben acquisition | 67 | ||||
Provision | 200 | ||||
Ending balance | 1,452 | 1,452 | |||
Total allowance for credit losses [Roll Forward] | |||||
Beginning balance | 52,453 | 52,453 | |||
Charge-offs | (5,141) | ||||
Recoveries | 2,681 | ||||
Steuben acquisition | 3,729 | ||||
Provision | 12,167 | ||||
Ending balance | 65,889 | 65,889 | |||
ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 1,357 | 1,357 | |||
Liabilities for off-balance-sheet credit exposures [Roll Forward] | |||||
Beginning balance | 1,185 | 1,185 | |||
Total allowance for credit losses [Roll Forward] | |||||
Beginning balance | 2,542 | 2,542 | |||
Acquired Impaired Loans [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 163 | 163 | |||
Acquired Impaired Loans [Member] | ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 0 | 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) | (163) | |||
Acquired Deteriorated | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 1,996 | 3,046 | $ 1,882 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | ||
Recoveries | 33 | 48 | 60 | ||
Steuben acquisition | 528 | ||||
Provision | (144) | (61) | (57) | ||
Balance, end of period | 1,885 | 3,561 | 1,885 | 3,561 | 1,882 |
Acquired Deteriorated | ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 3,072 | 3,072 | |||
Charge-offs | 0 | ||||
Recoveries | 48 | ||||
Steuben acquisition | 528 | ||||
Provision | (87) | ||||
Balance, end of period | 3,561 | 3,561 | |||
Acquired Deteriorated | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 3,072 | 3,072 | |||
Commercial Portfolio Segment [Member] | Business Lending [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 27,042 | 19,489 | 28,190 | 19,426 | 19,426 |
Charge-offs | (2) | (7) | (53) | ||
Recoveries | 255 | 84 | 322 | ||
Steuben acquisition | 2,483 | ||||
Provision | (3,878) | 2,155 | (5,042) | ||
Balance, end of period | 23,417 | 24,204 | 23,417 | 24,204 | 28,190 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 19,714 | 19,714 | |||
Charge-offs | (183) | ||||
Recoveries | 222 | ||||
Steuben acquisition | 2,483 | ||||
Provision | 1,968 | ||||
Balance, end of period | 24,204 | 24,204 | |||
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 | 288 | |||
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 9,686 | 12,430 | 10,672 | 10,269 | 10,269 |
Charge-offs | (142) | (234) | (242) | ||
Recoveries | 9 | 36 | 19 | ||
Steuben acquisition | 146 | ||||
Provision | 448 | 710 | (448) | ||
Balance, end of period | 10,001 | 13,088 | 10,001 | 13,088 | 10,672 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 9,218 | 9,218 | |||
Charge-offs | (420) | ||||
Recoveries | 44 | ||||
Steuben acquisition | 146 | ||||
Provision | 4,100 | ||||
Balance, end of period | 13,088 | 13,088 | |||
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | ASU 2016-13 [Member] | Cumulative Effect Adjustment [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | (1,051) | (1,051) | |||
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 11,120 | 13,694 | 13,696 | 13,712 | 13,712 |
Charge-offs | (750) | (1,431) | (2,149) | ||
Recoveries | 1,183 | 833 | 2,429 | ||
Steuben acquisition | 183 | ||||
Provision | (450) | 2,587 | (2,873) | ||
Balance, end of period | 11,103 | 15,866 | 11,103 | 15,866 | 13,696 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 12,715 | 12,715 | |||
Charge-offs | (3,510) | ||||
Recoveries | 1,996 | ||||
Steuben acquisition | 183 | ||||
Provision | 4,482 | ||||
Balance, end of period | 15,866 | 15,866 | |||
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) | (997) | |||
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 2,682 | 3,737 | 3,207 | 3,255 | 3,255 |
Charge-offs | (195) | (341) | (513) | ||
Recoveries | 213 | 171 | 444 | ||
Steuben acquisition | 87 | ||||
Provision | (152) | 374 | (590) | ||
Balance, end of period | 2,548 | 4,028 | 2,548 | 4,028 | 3,207 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 2,612 | 2,612 | |||
Charge-offs | (874) | ||||
Recoveries | 353 | ||||
Steuben acquisition | 87 | ||||
Provision | 1,850 | ||||
Balance, end of period | 4,028 | 4,028 | |||
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) | (643) | |||
Consumer Portfolio Segment [Member] | Home Equity [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 1,543 | 2,484 | 2,222 | 2,129 | 2,129 |
Charge-offs | (17) | (81) | (115) | ||
Recoveries | 5 | 12 | 9 | ||
Steuben acquisition | 235 | ||||
Provision | 265 | 40 | (320) | ||
Balance, end of period | 1,796 | 2,690 | 1,796 | 2,690 | 2,222 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 2,937 | 2,937 | |||
Charge-offs | (154) | ||||
Recoveries | 18 | ||||
Steuben acquisition | 235 | ||||
Provision | (346) | ||||
Balance, end of period | 2,690 | 2,690 | |||
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 | 808 | |||
Unallocated Financing Receivables [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 1,000 | 772 | 1,000 | 957 | 957 |
Charge-offs | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | ||
Steuben acquisition | 0 | ||||
Provision | 0 | 228 | 0 | ||
Balance, end of period | $ 1,000 | 1,000 | $ 1,000 | 1,000 | 1,000 |
Unallocated Financing Receivables [Member] | ASU 2016-13 [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Balance, beginning of period | 1,000 | 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 | $ 43 |
LOANS - Carrying Amounts of Loa
LOANS - Carrying Amounts of Loans Purchased and Sold (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | $ 0 |
Sales | 11,708 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 0 |
Sales | 848 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 0 |
Sales | 10,860 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 0 |
Sales | 0 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 0 |
Sales | 0 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | |
Carrying Amounts of Loans Purchased and Sold | |
Purchases | 0 |
Sales | $ 0 |
GOODWILL AND IDENTIFIABLE INT_3
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Identifiable Intangible Assets [Abstract] | ||
Gross Carrying Amount | $ 161,302 | $ 159,865 |
Accumulated Amortization | (113,522) | (106,925) |
Net Carrying Amount | 47,780 | 52,940 |
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract] | ||
Jul - Dec 2021 | 6,229 | |
2022 | 11,141 | |
2023 | 9,338 | |
2024 | 7,768 | |
2025 | 6,550 | |
Thereafter | 6,754 | |
Net Carrying Amount | 47,780 | 52,940 |
Components of goodwill [Abstract] | ||
Goodwill, net, beginning of period | 793,708 | |
Goodwill, net, activity | 1,184 | |
Goodwill, net, end of period | 794,892 | |
Core deposit intangibles [Member] | ||
Identifiable Intangible Assets [Abstract] | ||
Gross Carrying Amount | 69,403 | 69,403 |
Accumulated Amortization | (58,136) | (55,572) |
Net Carrying Amount | 11,267 | 13,831 |
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract] | ||
Net Carrying Amount | 11,267 | 13,831 |
Other intangibles [Member] | ||
Identifiable Intangible Assets [Abstract] | ||
Gross Carrying Amount | 91,899 | 90,462 |
Accumulated Amortization | (55,386) | (51,353) |
Net Carrying Amount | 36,513 | 39,109 |
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract] | ||
Net Carrying Amount | $ 36,513 | $ 39,109 |
MANDATORILY REDEEMABLE PREFER_2
MANDATORILY REDEEMABLE PREFERRED SECURITIES (Details) - USD ($) $ in Millions | Mar. 15, 2021 | Sep. 15, 2020 |
Community Capital Trust IV | ||
Mandatorily Redeemable Preferred Securities [Abstract] | ||
Redemption of debentures and associated preferred securities | $ 77.3 | |
Steuben Statutory Trust | ||
Mandatorily Redeemable Preferred Securities [Abstract] | ||
Redemption of debentures and associated preferred securities | $ 2.1 |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension Plans [Abstract] | |||||
Contribution made to defined benefit pension plan by employer | $ 3,900 | ||||
Pension Benefits [Member] | |||||
Pension Plans [Abstract] | |||||
Contribution made to defined benefit pension plan by employer | $ 2,900 | ||||
Net periodic benefit cost [Abstract] | |||||
Service cost | $ 1,480 | 1,438 | $ 2,960 | $ 2,875 | |
Interest cost | 1,259 | 1,356 | 2,518 | 2,712 | |
Expected return on plan assets | (4,695) | (3,932) | (9,391) | (7,864) | |
Amortization of unrecognized net loss | 900 | 810 | 1,800 | 1,620 | |
Amortization of prior service cost | 94 | 60 | 189 | 120 | |
Net periodic benefit | (962) | (268) | (1,924) | (537) | |
Post-retirement Benefits [Member] | |||||
Net periodic benefit cost [Abstract] | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 11 | 14 | 22 | 28 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of unrecognized net loss | 11 | 10 | 22 | 20 | |
Amortization of prior service cost | (44) | (44) | (89) | (89) | |
Net periodic benefit | $ (22) | $ (20) | $ (45) | $ (41) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
EARNINGS PER SHARE | ||||||
Weighted-average anti-dilutive stock options outstanding (in shares) | 200,000 | 600,000 | 100,000 | 600,000 | ||
Basic earnings per share [Abstract] | ||||||
Net income | $ 47,944 | $ 35,248 | $ 100,794 | $ 75,382 | ||
Income attributable to unvested stock-based compensation awards | (127) | (127) | (263) | (264) | ||
Income available to common shareholders | $ 47,817 | $ 35,121 | $ 100,531 | $ 75,118 | ||
Weighted-average common shares outstanding - basic (in shares) | 54,007,000 | 52,487,000 | 53,927,000 | 52,262,000 | ||
Basic earnings per share (in dollars per share) | $ 0.89 | $ 0.67 | $ 1.86 | $ 1.44 | ||
Diluted earnings per share [Abstract] | ||||||
Net income | $ 47,944 | $ 35,248 | $ 100,794 | $ 75,382 | ||
Income attributable to unvested stock-based compensation awards | (127) | (127) | (263) | (264) | ||
Income available to common shareholders | $ 47,817 | $ 35,121 | $ 100,531 | $ 75,118 | ||
Weighted-average common shares outstanding - basic (in shares) | 54,007,000 | 52,487,000 | 53,927,000 | 52,262,000 | ||
Assumed exercise of stock options (in shares) | 462,000 | 339,000 | 455,000 | 372,000 | ||
Weighted-average common shares outstanding - diluted (in shares) | 54,469,000 | 52,826,000 | 54,382,000 | 52,634,000 | ||
Diluted earnings per share (in dollars per share) | $ 0.88 | $ 0.66 | $ 1.85 | $ 1.43 | ||
Stock Repurchase Program [Abstract] | ||||||
Number of common shares authorized to be repurchased (in shares) | 2,680,000 | 2,600,000 | ||||
Number of common shares repurchased (in shares) | 0 | 0 |
COMMITMENTS, CONTINGENT LIABI_3
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2021 | |
Commitments, Contingent Liabilities and Restrictions [Abstract] | ||
Contract amount of commitments and contingencies | $ 1,352,781 | $ 1,235,186 |
Expense recorded for litigation accrual | 3,000 | |
Minimum [Member] | ||
Commitments, Contingent Liabilities and Restrictions [Abstract] | ||
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability | 0 | |
Maximum [Member] | ||
Commitments, Contingent Liabilities and Restrictions [Abstract] | ||
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability | 1,000 | |
Commitments to Extend Credit [Member] | ||
Commitments, Contingent Liabilities and Restrictions [Abstract] | ||
Contract amount of commitments and contingencies | 1,313,568 | 1,199,804 |
Standby Letters of Credit [Member] | ||
Commitments, Contingent Liabilities and Restrictions [Abstract] | ||
Contract amount of commitments and contingencies | $ 39,213 | $ 35,382 |
FAIR VALUE - Financial Assets a
FAIR VALUE - Financial Assets and Liabilities Accounted for at Fair Value On a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | $ 4,012,739 | |
Equity securities | 469 | $ 445 |
U.S. Treasury and agency securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 3,025,072 | 2,501,382 |
Obligations of state and political subdivisions | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 426,152 | 475,660 |
Government agency mortgage-backed securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 529,139 | 522,638 |
Corporate debt securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 3,094 | 4,635 |
Government agency collateralized mortgage obligations | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 29,282 | 43,577 |
Significant Unobservable Inputs, Level 3 [Member] | Commitments to originate real estate loans for sale | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 130 | 14 |
Recurring [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 4,012,739 | 3,547,892 |
Equity securities | 469 | 445 |
Mortgage loans held for sale | 1,340 | 1,622 |
Total | 4,015,074 | 3,550,473 |
Recurring [Member] | Commitments to originate real estate loans for sale | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 130 | 14 |
Recurring [Member] | Forward sales commitments | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 31 | 2 |
Recurring [Member] | Interest rate swap agreements | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 372 | 1,572 |
Derivative liability | (7) | (1,074) |
Recurring [Member] | U.S. Treasury and agency securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 3,025,072 | 2,501,382 |
Recurring [Member] | Obligations of state and political subdivisions | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 426,152 | 475,660 |
Recurring [Member] | Government agency mortgage-backed securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 529,139 | 522,638 |
Recurring [Member] | Corporate debt securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 3,094 | 4,635 |
Recurring [Member] | Government agency collateralized mortgage obligations | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 29,282 | 43,577 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 2,909,475 | 2,359,912 |
Equity securities | 469 | 445 |
Mortgage loans held for sale | 0 | 0 |
Total | 2,909,944 | 2,360,357 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Commitments to originate real estate loans for sale | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Forward sales commitments | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 0 | 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 | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 2,909,475 | 2,359,912 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member] | Obligations of state and political subdivisions | ||
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 | ||
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 | ||
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 | ||
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 | 1,103,264 | 1,187,980 |
Equity securities | 0 | 0 |
Mortgage loans held for sale | 1,340 | 1,622 |
Total | 1,105,000 | 1,190,102 |
Mortgage loans held for sale | 1,300 | 1,600 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Commitments to originate real estate loans for sale | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 0 | 0 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Forward sales commitments | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 31 | 2 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Interest rate swap agreements | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 372 | 1,572 |
Derivative liability | (7) | (1,074) |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | U.S. Treasury and agency securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 115,597 | 141,470 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Obligations of state and political subdivisions | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 426,152 | 475,660 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Government agency mortgage-backed securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 529,139 | 522,638 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Corporate debt securities | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 3,094 | 4,635 |
Recurring [Member] | Significant Observable Inputs, Level 2 [Member] | Government agency collateralized mortgage obligations | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 29,282 | 43,577 |
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 | 0 |
Total | 130 | 14 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Commitments to originate real estate loans for sale | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 130 | 14 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Forward sales commitments | ||
Available-for-sale investment securities [Abstract] | ||
Derivative asset | 0 | 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 | ||
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 | ||
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 | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs, Level 3 [Member] | Corporate debt securities | ||
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 | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | $ 0 | $ 0 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Valuation allowance | $ 2,800 | $ 3,874 |
Mortgage Servicing Rights [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Valuation allowance | 100 | 200 |
Significant Unobservable Inputs, Level 3 [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Impaired loans | 21,330 | 25,063 |
Other real estate owned | 879 | 883 |
Mortgage servicing rights | 697 | 682 |
Non-recurring [Member] | ||
Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ||
Impaired loans | 21,330 | 25,063 |
Other real estate owned | 879 | 883 |
Mortgage servicing rights | 697 | 682 |
Total | 22,906 | 26,628 |
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 | 21,330 | 25,063 |
Other real estate owned | 879 | 883 |
Mortgage servicing rights | 697 | 682 |
Total | $ 22,906 | $ 26,628 |
FAIR VALUE - Significant Unobse
FAIR VALUE - Significant Unobservable Inputs (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | |
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] | ||
Other real estate owned, measurement input | 9 | |
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] | ||
Other real estate owned, measurement input | 51.1 | |
Significant Unobservable Inputs, Level 3 [Member] | ||
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract] | ||
Impaired loans | $ 25,063,000 | $ 21,330,000 |
Other real estate owned | 883,000 | 879,000 |
Fair value of MSRs at end of period | $ 682,000 | $ 697,000 |
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] | Fair Value of Collateral [Member] | Fair Value of Collateral [Member] |
Impaired loans, Measurement Input [Extensible List] | us-gaap:MeasurementInputCostToSellMember | us-gaap:MeasurementInputCostToSellMember |
Other real estate owned, Valuation Technique [Extensible List] | Fair Value of Collateral [Member] | Fair Value of Collateral [Member] |
Other real estate owned, Measurement Input [Extensible List] | us-gaap:MeasurementInputCostToSellMember | us-gaap:MeasurementInputCostToSellMember |
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] | ||
Mortgage servicing rights, Valuation Technique [Extensible List] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] |
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 [Extensible List] | Weighted Average Constant Prepayment Rate [Member] | Weighted Average Constant Prepayment Rate [Member] |
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 [Extensible List] | Weighted Average Discount Rate [Member] | Weighted Average Discount Rate [Member] |
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 | |
Mortgage servicing rights, Measurement Input [Extensible List] | Adequate Compensation [Member] | Adequate Compensation [Member] |
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 | 9 |
Other real estate owned, measurement input | 11.3 | 9 |
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 | 16.9 |
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 | 2.2 |
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 | 78.4 | 78.7 |
Other real estate owned, measurement input | 52.9 | 51.1 |
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 | 49.1 |
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 | 2.8 |
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 | 52.7 | 53.8 |
Other real estate owned, measurement input | 34 | 34.5 |
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 | 21.8 |
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 | 2.7 |
Commitments to originate real estate loans for sale | 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 | $ 130,000 |
Commitments to originate real estate loans for sale | 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] | Discounted Cash Flow [Member] | Discounted Cash Flow [Member] |
Commitments to originate real estate loans for sale, measurement input | 1 | 1 |
Commitments to originate real estate loans for sale | 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] | Embedded Servicing Value [Member] | Embedded Servicing Value [Member] |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Value [Member] | ||
Financial assets: | ||
Net loans | $ 7,192,397 | $ 7,355,083 |
Financial liabilities: | ||
Deposits | 12,339,025 | 11,224,974 |
Securities sold under agreement to repurchase, short-term | 194,887 | 284,008 |
Other Federal Home Loan Bank borrowings | 2,936 | 6,658 |
Subordinated notes payable | 3,290 | 3,303 |
Subordinated debt held by unconsolidated subsidiary trusts | 0 | 77,320 |
Fair Value [Member] | ||
Financial assets: | ||
Net loans | 7,563,546 | 7,655,044 |
Financial liabilities: | ||
Deposits | 12,349,413 | 11,239,628 |
Securities sold under agreement to repurchase, short-term | 194,887 | 284,008 |
Other Federal Home Loan Bank borrowings | 2,993 | 6,758 |
Subordinated notes payable | 3,290 | 3,303 |
Subordinated debt held by unconsolidated subsidiary trusts | $ 0 | $ 77,320 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - Interest rate swap agreements - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative Instruments [Abstract] | ||
Derivative, notional amount | $ 0.7 | $ 14.4 |
Derivative weighted average receive rate | 2.34% | 2.10% |
Derivative weighted average pay rate | 3.54% | 4.44% |
Weighted average maturity period | 1 year 9 months 18 days | 5 years 2 months 12 days |
Designated As Hedging Instrument | Fair Value Hedging [Member] | ||
Derivative Instruments [Abstract] | ||
Derivative, notional amount | $ 5.4 | $ 5.7 |
Derivative weighted average receive rate | 1.38% | 1.42% |
Derivative weighted average pay rate | 3.11% | 3.11% |
Weighted average maturity period | 12 years | 12 years 6 months |
DERIVATIVE INSTRUMENTS - Cumula
DERIVATIVE INSTRUMENTS - Cumulative Basis Adjustments for Fair Value Hedges (Details) - Loans [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Cumulative Basis Adjustments for Fair Value Hedges [Abstract] | ||
Carrying amount of the hedged assets | $ 5,809 | $ 5,675 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets | $ (365) | $ (498) |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Values of Derivative Instruments | ||
Derivative assets | $ 533 | $ 1,588 |
Derivative liabilities | 7 | 1,074 |
Interest rate swap agreements | Designated As Hedging Instrument | Other Assets | ||
Fair Values of Derivative Instruments | ||
Derivative assets | 365 | 498 |
Interest rate swap agreements | Not Designated as Hedging Instrument | Other Assets | ||
Fair Values of Derivative Instruments | ||
Derivative assets | 7 | 1,074 |
Interest rate swap agreements | Not Designated as Hedging Instrument | Accrued Interest and Other Liabilities | ||
Fair Values of Derivative Instruments | ||
Derivative liabilities | 7 | 1,074 |
Commitments to originate real estate loans for sale | Not Designated as Hedging Instrument | Other Assets | ||
Fair Values of Derivative Instruments | ||
Derivative assets | 130 | 14 |
Forward sales commitments | Not Designated as Hedging Instrument | Other Assets | ||
Fair Values of Derivative Instruments | ||
Derivative assets | $ 31 | $ 2 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information, Additional Information [Abstract] | |||||
Net interest income | $ 92,105 | $ 91,951 | $ 186,059 | $ 182,005 | |
Provision for credit losses | (4,338) | 9,774 | (10,057) | 15,368 | |
Noninterest revenues | 59,460 | 52,938 | 117,991 | 111,560 | |
Amortization of intangible assets | 3,246 | 3,524 | 6,597 | 7,191 | |
Acquisition expenses | 4 | 3,372 | 31 | 3,741 | |
Other operating expenses | 90,293 | 84,007 | 180,161 | 173,634 | |
Income before income taxes | 62,360 | 44,212 | 127,318 | 93,631 | |
Assets | 14,801,287 | 13,444,217 | 14,801,287 | 13,444,217 | $ 13,931,094 |
Goodwill | 794,892 | 792,715 | 794,892 | 792,715 | $ 793,708 |
Core deposit intangibles & Other intangibles | 47,780 | 60,046 | 47,780 | 60,046 | |
Eliminations [Member] | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||
Net interest income | 0 | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest revenues | (1,707) | (1,374) | (3,596) | (2,893) | |
Amortization of intangible assets | 0 | 0 | 0 | 0 | |
Acquisition expenses | 0 | 0 | 0 | 0 | |
Other operating expenses | (1,707) | (1,374) | (3,596) | (2,893) | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Assets | (100,699) | (122,856) | (100,699) | (122,856) | |
Goodwill | 0 | 0 | 0 | 0 | |
Core deposit intangibles & Other intangibles | 0 | 0 | 0 | 0 | |
Banking [Member] | Operating Segments [Member] | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||
Net interest income | 92,033 | 91,645 | 185,872 | 181,409 | |
Provision for credit losses | (4,338) | 9,774 | (10,057) | 15,368 | |
Noninterest revenues | 16,357 | 14,991 | 32,811 | 33,672 | |
Amortization of intangible assets | 1,240 | 1,364 | 2,564 | 2,781 | |
Acquisition expenses | 4 | 3,372 | 31 | 3,741 | |
Other operating expenses | 65,158 | 59,130 | 130,165 | 123,330 | |
Income before income taxes | 46,326 | 32,996 | 95,980 | 69,861 | |
Assets | 14,588,075 | 13,272,929 | 14,588,075 | 13,272,929 | |
Goodwill | 689,867 | 689,128 | 689,867 | 689,128 | |
Core deposit intangibles & Other intangibles | 11,267 | 16,565 | 11,267 | 16,565 | |
Employee Benefit Services [Member] | Operating Segments [Member] | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||
Net interest income | 65 | 246 | 159 | 486 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest revenues | 27,994 | 24,504 | 55,143 | 50,429 | |
Amortization of intangible assets | 1,327 | 1,411 | 2,681 | 2,905 | |
Acquisition expenses | 0 | 0 | 0 | 0 | |
Other operating expenses | 14,846 | 14,948 | 29,851 | 30,079 | |
Income before income taxes | 11,886 | 8,391 | 22,770 | 17,931 | |
Assets | 235,141 | 216,122 | 235,141 | 216,122 | |
Goodwill | 83,275 | 83,275 | 83,275 | 83,275 | |
Core deposit intangibles & Other intangibles | 29,370 | 34,870 | 29,370 | 34,870 | |
All Other [Member] | Operating Segments [Member] | |||||
Segment Reporting Information, Additional Information [Abstract] | |||||
Net interest income | 7 | 60 | 28 | 110 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Noninterest revenues | 16,816 | 14,817 | 33,633 | 30,352 | |
Amortization of intangible assets | 679 | 749 | 1,352 | 1,505 | |
Acquisition expenses | 0 | 0 | 0 | 0 | |
Other operating expenses | 11,996 | 11,303 | 23,741 | 23,118 | |
Income before income taxes | 4,148 | 2,825 | 8,568 | 5,839 | |
Assets | 78,770 | 78,022 | 78,770 | 78,022 | |
Goodwill | 21,750 | 20,312 | 21,750 | 20,312 | |
Core deposit intangibles & Other intangibles | $ 7,143 | $ 8,611 | $ 7,143 | $ 8,611 |