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Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Schedule of allowance for loan and lease losses segregated by originated and acquired loan and lease portfolios and by portfolio segment
Three Months Ended June 30, 2020
(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer
and Other		Finance
Leases		Total
Allowance for credit losses:
Beginning balance$11,665  $22,446  $16,330  $1,883  $80  $52,404  
Charge-offs0  (15) (1) (127) 0  (143) 
Recoveries21  12  84  52  0  169  
Provision (credit) for credit loss expense(573) 1,843  (1,401) (212) (5) (348) 
Ending Balance$11,113  $24,286  $15,012  $1,596  $75  $52,082  
Three Months Ended June 30, 2019
(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer
and Other		Finance
Leases		Total
Allowance for credit losses:
Beginning balance$11,523  $21,070  $6,462  $1,273  $0  $40,328  
Charge-offs(103) (55) (26) (201) 0  (385) 
Recoveries23  98  71  54  0  246  
Provision (credit) for credit loss expense100  (108) 390  219  0  601  
Ending Balance$11,543  $21,005  $6,897  $1,345  $0  $40,790  

Six Months Ended June 30, 2020
(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer
and Other		Finance
Leases		Total
Allowance for credit losses:
Beginning balance, prior to adoption of ASC 326$10,541  $21,608  $6,381  $1,362  $0  $39,892  
Impact of adopting ASC 326(2,008) (5,917) 4,459  850  82  (2,534) 
Charge-offs(1) (1,305) (3) (264) 0  (1,573) 
Recoveries37  30  163  121  0  351  
Provision (credit) for credit loss expense2,544  9,870  4,012  (473) (7) 15,946  
Ending Balance$11,113  $24,286  $15,012  $1,596  $75  $52,082  

Six Months Ended June 30, 2019
(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer
and Other		Finance
Leases		Total
Allowance for credit losses:
Beginning balance$11,272  $23,483  $7,345  $1,310  $0  $43,410  
Charge-offs(483) (3,398) (44) (381) 0  (4,306) 
Recoveries82  105  304  149  0  640  
Provision (credit) for credit loss expense672  815  (708) 267  0  1,046  
Ending Balance$11,543  $21,005  $6,897  $1,345  $0  $40,790  
Schedule of allowance for loan and lease losses based on impairment methodology
The following tables present information pertaining to the allocation of the allowance for credit losses as of December 31, 2019, as determined in accordance with ASC 310, prior to the adoption of ASU 2016-13:
 
(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer
and Other		Finance LeasesTotal
Allowance for originated loans and leases
December 31, 2019
Individually evaluated for impairment$245  $662  $0  $0  $0  $907  
Collectively evaluated for impairment10,296  20,895  6,360  1,356  0  38,907  
Ending balance$10,541  $21,557  $6,360  $1,356  $0  $39,814  

(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer
and Other		Finance
Leases		Total
Allowance for acquired loans
December 31, 2019
Individually evaluated for impairment$0  $0  $0  $0  $0  $0  
Collectively evaluated for impairment0  51  21  6  0  78  
Ending balance$0  $51  $21  $6  $0  $78  
Schedule of recorded investment in loans and leases based on impairment methodology
The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology as of December 31, 2019 was as follows:
(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer 
and Other		Finance LeasesTotal
Originated loans and leases
December 31, 2019
Individually evaluated for impairment$2,110  $13,496  $3,779  $0  $0  $19,385  
Collectively evaluated for impairment966,875  2,283,152  1,340,687  73,625  17,322  4,681,661  
Total$968,985  $2,296,648  $1,344,466  $73,625  $17,322  $4,701,046  
 
(In thousands)Commercial
& Industrial		Commercial
Real Estate		Residential
Real Estate		Consumer 
and Other		Finance
Leases		Total
Acquired loans
December 31, 2019
Individually evaluated for impairment$2  $714  $2,114  $0  $0  $2,830  
Loans acquired with deteriorated credit quality173  5,674  3,302  0  0  9,149  
Collectively evaluated for impairment38,901  140,529  27,955  785  0  208,170  
Total$39,076  $146,917  $33,371  $785  $0  $220,149  
Schedule of average recorded investment and interest income on impaired loans
Impaired loans at December 31, 2019 were as follows: 
December 31, 2019
(In thousands)Recorded InvestmentUnpaid Principal BalanceRelated Allowance
Originated loans and leases with no related allowance
Commercial & industrial
Commercial and industrial other$1,865  $1,965  $0  
Commercial real estate
Commercial real estate other10,205  11,017  0  
Residential real estate
Home equity3,779  3,992  0  
Subtotal$15,849  $16,974  $0  
Originated loans and leases with related allowance
Commercial & industrial
Commercial and industrial other245  245  245  
Commercial real estate
Commercial real estate other3,291  3,291  662  
Subtotal$3,536  $3,536  $907  
Total$19,385  $20,510  $907  
 
December 31, 2019
(In thousands)Recorded InvestmentUnpaid Principal BalanceRelated Allowance
Acquired loans with no related allowance
Commercial & industrial
Commercial and industrial other$2  $2  $0  
Commercial real estate
Commercial real estate other714  714  0  
Residential real estate
Home equity2,114  2,217  0  
Total$2,830  $2,933  $0  
The following table presents average impaired loans, as determined in accordance with ASC 310, prior to the adoption of ASU 2016-13, and interest recognized on such loans, for the three months ended June 30, 2019: 
Three Months Ended June 30, 2019
(In thousands)Average Recorded InvestmentInterest Income Recognized
Originated loans and leases with no related allowance
Commercial & industrial
Commercial and industrial other$1,331  $0  
Commercial real estate
Commercial real estate other3,718  0  
Residential real estate
Home equity4,009  0  
Subtotal$9,058  $0  
Originated loans and leases with related allowance
Commercial & industrial
Commercial and industrial other693  0  
Commercial real estate
Commercial real estate other1,579  0  
Subtotal$2,272  $0  
Total$11,330  $0  
 
Three Months Ended June 30, 2019
(In thousands)Average Recorded InvestmentInterest Income Recognized
Acquired loans and leases with no related allowance
Commercial & industrial
Commercial and industrial other$12  $0  
Commercial real estate
Commercial real estate other851  0  
Residential real estate
Home equity2,557  0  
Total$3,420  $0  
The average recorded investment and interest income recognized on impaired loans for the six months ended June 30, 2020 and 2019 was as follows:
Six Months Ended June 30, 2019
(In thousands)Average Recorded InvestmentInterest Income Recognized
Originated loans and leases with no related allowance
Commercial & industrial
Commercial and industrial other$2,352  $0  
Commercial real estate
Commercial real estate other5,400  0  
Residential real estate
Home equity3,994  0  
Subtotal$11,746  $0  
Originated loans and leases with related allowance
Commercial & industrial
Commercial and industrial other487  0  
Commercial real estate
Commercial real estate other706  0  
Subtotal$1,193  $0  
Total$12,939  $0  
Six Months Ended June 30, 2019
(In thousands)Average Recorded InvestmentInterest Income Recognized
Acquired loans and leases with no related allowance
Commercial & industrial
Commercial and industrial other$35  $0  
Commercial real estate
Commercial real estate other896  0  
Residential real estate
Home equity2,591  0  
Total$3,522  $0  
Schedule of loans modified in troubled debt restructuring
The following tables present information on loans modified in troubled debt restructuring during the periods indicated. There were no modifications on TDRs or defaulted TDRs in the second quarter of 2020.
 
Three Months Ended
June 30, 2019
Defaulted TDRs2
(In thousands)Number of LoansPre-Modification Outstanding Recorded InvestmentPost-Modification Outstanding Recorded InvestmentNumber of LoansPost-Modification Outstanding Recorded Investment
Commercial and Industrial
Commercial and industrial other1
1  595  595  0  0  
Total1  $595  $595  0  $0  
 1 Represents the following concessions:  extension of term and reduction of rate.
2 TDRs that defaulted during the three months ended June 30, 2019 that were restructured in the prior twelve months.
 
Six Months Ended
June 30, 2020
Defaulted TDRs2
(In thousands)Number of
Loans		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment		Number of
Loans		Post-
Modification
Outstanding
Recorded
Investment
Commercial & industrial
Commercial and industrial other1
0  $0  $0  0  $0  
Commercial real estate
Commercial real estate other1
0  0  0  1  37  
Residential real estate
Home equity1
2  121  121  1  87  
Total2  $121  $121  2  $124  
1 Represents the following concessions:  extension of term and reduction of rate.
2 TDRs that defaulted during the six months ended June 30, 2020 that were restructured in the prior twelve months.
.
Six Months Ended
June 30, 2019
Defaulted TDRs2
(In thousands)Number of
Loans		Pre-
Modification
Outstanding
Recorded
Investment		Post-
Modification
Outstanding
Recorded
Investment		Number of
Loans		Post-
Modification
Outstanding
Recorded
Investment
Commercial & industrial
Commercial and industrial other1  595  595  0  0  
Residential real estate
Home equity1
1  $168  $168  0  $0  
Total2  $763  $763  0  $0  
1 Represents the following concessions:  extension of term and reduction of rate.
2 TDRs that defaulted during the six months ended June 30, 2019 that had been restructured in the prior twelve months.
Schedule of credit quality indicators by class of commercial and industrial loans and commercial real estate loans
The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2020.
(In thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal Loans
Commercial & Industrial - Other:
Pass$52,554  $82,412  $67,418  $73,935  $42,652  $205,483  $308,949  $402  $833,805  
Special Mention0  259  254  1,148  2,806  0  930  0  5,397  
Substandard25  106  1,229  276  243  694  3,016  0  5,589  
Total Commercial & Industrial - Other$52,579  $82,777  $68,901  $75,359  $45,701  $206,176  $312,895  $402  $844,791  
Commercial and Industrial - PPP:
Pass$465,627  $0  $0  $0  $0  $0  $0  $0  $465,627  
Special Mention$0  $0  $0  $0  $0  $0  $0  $0  $0  
Substandard$0  $0  $0  $0  $0  $0  $0  $0  $0  
Total Commercial and Industrial - PPP$465,627  $0  $0  $0  $0  $0  $0  $0  $465,627  
Commercial and Industrial - Agriculture:
Pass$7,306  $10,485  $11,254  $6,487  $4,627  $2,632  $43,111  $0  $85,902  
Special Mention0  79  119  58  0  0  388  0  644  
Substandard100  100  0  1,008  0  0  5,994  0  7,202  
Total Commercial and Industrial - Agriculture$7,406  $10,664  $11,373  $7,553  $4,627  $2,632  $49,493  $0  $93,748  
Commercial Real Estate
Pass$143,733  $246,737  $233,379  $261,009  $338,157  $215,469  $655,061  $1,975  $2,095,520  
Special Mention0  0  6,836  2,400  11,251  587  8,986  0  30,060  
Substandard0  1,700  761  3,612  496  2,166  20,136  0  28,871  
Total Commercial Real Estate$143,733  $248,437  $240,976  $267,021  $349,904  $218,222  $684,183  $1,975  $2,154,451  
Commercial Real Estate - Agriculture:
Pass$9,186  $32,279  $42,572  $21,835  $17,537  $6,374  $51,488  $442  $181,713  
Special Mention1,820  0  2,408  119  1,250  0  350  0  5,947  
Substandard0  0  556  3,165  722  0  1,607  0  6,050  
Total Commercial Real Estate - Agriculture$11,006  $32,279  $45,536  $25,119  $19,509  $6,374  $53,445  $442  $193,710  
Commercial Real Estate - Construction
Pass$7,653  $19,325  $9,494  $2,789  $2,099  $3,131  $145,422  $243  $190,156  
Special Mention0  0  0  0  0  0  2,693  0  2,693  
Substandard0  0  0  0  0  0  334  0  334  
Total Commercial Real Estate - Construction$7,653  $19,325  $9,494  $2,789  $2,099  $3,131  $148,449  $243  $193,183  
The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2020, continued.
(In thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to TermTotal Loans
Residential - Home Equity
Performing$7,598  $27,843  $22,998  $24,222  $19,761  $19,765  $83,857  $822  $206,866  
Nonperforming0  19  67  0  0  605  1,588  0  2,279  
Total Residential - Home Equity$7,598  $27,862  $23,065  $24,222  $19,761  $20,370  $85,445  $822  $209,145  
Residential - Mortgages
Performing$137,037  $202,916  $137,996  $177,609  $201,718  $55,129  $276,952  $204  $1,189,561  
Nonperforming0  265  406  371  1,126  1,369  5,739  0  9,276  
Total Residential - Mortgages$137,037  $203,181  $138,402  $177,980  $202,844  $56,498  $282,691  $204  $1,198,837  
Consumer - Direct
Performing$7,891  $15,592  $9,977  $8,656  $4,589  $1,205  $14,232  $0  $62,142  
Nonperforming0  61  133  4  0  0  5  $0  203  
Total Consumer - Direct$7,891  $15,653  $10,110  $8,660  $4,589  $1,205  $14,237  $0  $62,345  
Consumer - Indirect
Performing$862  $2,676  $4,358  $1,694  $683  $121  $160  $0  $10,554  
Nonperforming0  83  45  10  34  0  22  0  194  
Total Consumer Indirect$862  $2,759  $4,403  $1,704  $717  $121  $182  $0  $10,748  

The following tables present credit quality indicators (internal risk grade) by class of commercial and industrial loans and commercial real estate loans as of December 31, 2019. 
December 31, 2019
(In thousands)Commercial & Industrial OtherCommercial & Industrial AgricultureCommercial Real Estate OtherCommercial Real Estate AgricultureCommercial Real Estate ConstructionTotal
Originated Loans and Leases
Internal risk grade:
Pass$851,517  $89,892  $1,857,142  $166,888  $212,302  $3,177,741  
Special Mention8,306  1,698  16,623  3,173  0  29,800  
Substandard3,376  14,196  25,880  14,640  0  58,092  
Total$863,199  $105,786  $1,899,645  $184,701  $212,302  $3,265,633  
 
December 31, 2019
(In thousands)Commercial & Industrial OtherCommercial & Industrial AgricultureCommercial Real Estate OtherCommercial Real Estate AgricultureCommercial Real Estate ConstructionTotal
Acquired Loans and Leases
Internal risk grade:
Pass$38,879  $0  $143,175  $197  $1,335  $183,586  
Special Mention0  0  0  0  0  0  
Substandard197  0  2,210  0  0  2,407  
Total$39,076  $0  $145,385  $197  $1,335  $185,993  
Schedule of credit quality indicators by class of residential real estate loans and consumer loans
The following tables present credit quality indicators by class of residential real estate loans and by class of consumer loans. Nonperforming loans include nonaccrual, impaired, and loans 90 days past due and accruing interest. All other loans are considered performing as of December 31, 2019. For purposes of this footnote, acquired loans that were recorded at fair value at the acquisition date and are 90 days or greater past due are considered performing.
 
December 31, 2019
(In thousands)Residential
Home Equity		Residential
Mortgages		Consumer
Indirect		Consumer
Other		Total
Originated Loans and Leases
Performing$201,970  $1,133,237  $12,847  $60,503  $1,408,557  
Nonperforming1,924  7,335  117  158  9,534  
Total$203,894  $1,140,572  $12,964  $60,661  $1,418,091  
 
December 31, 2019
(In thousands)Residential
Home Equity		Residential
Mortgages		Consumer
Indirect		Consumer
Other		Total
Acquired Loans and Leases
Performing$14,479  $17,269  $0  $785  $32,533  
Nonperforming872  751  0  0  1,623  
Total$15,351  $18,020  $0  $785  $34,156