10-Q

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the transition period from _____ to ______

Commission File Number 1-12709

  

Tompkins Financial Corporation

(Exact name of registrant as specified in its charter)

New York	16-1482357
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

P.O. Box 460, Ithaca, NY

(Address of principal executive offices)

14851

(Zip Code)

Registrant’s telephone number, including area code: (888) 503-5753

Former name, former address, and former fiscal year, if changed since last report: NA

Indicate the number of shares of the Registrant’s Common Stock outstanding as of the latest practicable date:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.10 par value	TMP	NYSE American, LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes ☐ No ☒.

Indicate the number of shares of the Registrant's Common Stock outstanding as of the latest practicable date: 14,490,602 shares as of August 02, 2022.

TOMPKINS FINANCIAL CORPORATION

FORM 10-Q

INDEX

PART I -FINANCIAL INFORMATION
			PAGE
	Item 1 –	Financial Statements Consolidated Statements of Condition as of June 30, 2022 (Unaudited) and December 31, 2021 (Audited)	1
		Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 (Unaudited)	2
		Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021 (Unaudited)	3
		Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (Unaudited)	4
		Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended June 30, 2022 and 2021 (Unaudited)	6
		Notes to Unaudited Consolidated Financial Statements	8
	Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
	Item 3 -	Quantitative and Qualitative Disclosures About Market Risk	64
	Item 4 -	Controls and Procedures	65
PART II - OTHER INFORMATION
	Item 1 –	Legal Proceedings	65
	Item 1A – Risk Factors		65
	Item 2 –	Unregistered Sales of Equity Securities and Use of Proceeds	66
	Item 3 -	Defaults Upon Senior Securities	66
	Item 4 -	Mine Safety Disclosures	66
	Item 5 -	Other Information	66
	Item 6 -	Exhibits	67
SIGNATURES			68

Item 1. Financial Statements

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(In thousands, except share and per share data)	As of		As of
ASSETS	06/30/2022		12/31/2021
	(unaudited)		(audited)
Cash and noninterest bearing balances due from banks	$	20,878	$	23,078
Interest bearing balances due from banks	59,514		40,029
Cash and Cash Equivalents	80,392		63,107
Available-for-sale debt securities, at fair value (amortized cost of $2,075,020 at June 30, 2022 and $2,063,790 at December 31, 2021)	1,891,718		2,044,513
Held-to-maturity securities, at amortized cost (fair value of $274,660 at June 30, 2022 and $282,288 December 31, 2021)	312,315		284,009
Equity securities, at fair value (amortized cost $818 at June 30, 2022 and $902 at December 31, 2021)	818		902
Total loans and leases, net of unearned income and deferred costs and fees	5,162,503		5,075,467
Less: Allowance for credit losses	43,793		42,843
Net Loans and Leases	5,118,710		5,032,624
Federal Home Loan Bank and other stock	17,913		10,996
Bank premises and equipment, net	83,661		85,416
Corporate owned life insurance	87,093		86,495
Goodwill	92,447		92,447
Other intangible assets, net	3,124		3,643
Accrued interest and other assets	154,270		115,830
Total Assets	$	7,842,461	$	7,819,982
LIABILITIES
Deposits:
Interest bearing:
Checking, savings and money market	3,966,965		4,016,025
Time	594,853		639,674
Noninterest bearing	2,207,703		2,135,736
Total Deposits	6,769,521		6,791,435
Federal funds purchased and securities sold under agreements to repurchase	50,075		66,787
Other borrowings	295,600		124,000
Other liabilities	102,947		108,819
Total Liabilities	$	7,218,143	$	7,091,041
EQUITY
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $0.10 per share: Authorized 25,000,000 shares; Issued: 14,540,514 at June 30, 2022; and 14,696,911 at December 31, 2021	1,454		1,470
Additional paid-in capital	303,335		312,538
Retained earnings	502,770		475,262
Accumulated other comprehensive loss	(178,869)		(55,950)
Treasury stock, at cost – 123,030 shares at June 30, 2022, and 124,709 shares at December 31, 2021	(5,847)		(5,791)
Total Tompkins Financial Corporation Shareholders’ Equity	622,843		727,529
Noncontrolling interests	1,475		1,412
Total Equity	$	624,318	$	728,941
Total Liabilities and Equity	$	7,842,461	$	7,819,982

See notes to unaudited consolidated financial statements.

1

TOMPKINS FINANCIAL CORPORATION

 CONSOLIDATED STATEMENTS OF INCOME 

	Three Months Ended				Six Months Ended
(In thousands, except per share data) (Unaudited)	06/30/2022		06/30/2021		06/30/2022		06/30/2021
INTEREST AND DIVIDEND INCOME
Loans	$	52,505	$	53,653	$	103,636	$	107,860
Due from banks	64		45		105		130
Available-for-sale debt securities	7,063		5,626		13,833		10,876
Held-to-maturity securities	1,201		312		2,330		312
Federal Home Loan Bank and other stock	120		199		225		412
Total Interest and Dividend Income	60,953		59,835		120,129		119,590
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more	400		567		826		1,206
Other deposits	1,647		2,235		3,267		4,747
Federal funds purchased and securities sold under agreements to repurchase	15		15		31		31
Trust preferred debentures	0		821		0		996
Other borrowings	629		1,351		1,129		2,727
Total Interest Expense	2,691		4,989		5,253		9,707
Net Interest Income	58,262		54,846		114,876		109,883
Less: Provision (credit) for credit loss expense	856		(3,071)		336		(4,901)
Net Interest Income After Credit for Credit Loss Expense	57,406		57,917		114,540		114,784
NONINTEREST INCOME
Insurance commissions and fees	8,429		8,054		17,746		17,220
Investment services income	4,596		4,717		9,513		9,390
Service charges on deposit accounts	1,756		1,471		3,535		2,941
Card services income	2,959		2,951		5,502		5,334
Other income	1,241		1,665		2,717		3,639
Net (loss) gain on securities transactions	(37)		0		(84)		317
Total Noninterest Income	18,944		18,858		38,929		38,841
NONINTEREST EXPENSE
Salaries and wages	24,396		23,992		47,668		46,652
Other employee benefits	6,341		6,626		12,138		12,110
Net occupancy expense of premises	3,131		3,561		6,672		7,023
Furniture and fixture expense	2,004		2,204		3,995		4,154
Amortization of intangible assets	219		329		437		659
Other operating expense	13,029		10,730		25,049		21,355
Total Noninterest Expenses	49,120		47,442		95,959		91,953
Income Before Income Tax Expense	27,230		29,333		57,510		61,672
Income Tax Expense	6,329		6,471		13,305		13,151
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation	20,901		22,862		44,205		48,521
Less: Net Income Attributable to Noncontrolling Interests	32		31		63		64
Net Income Attributable to Tompkins Financial Corporation	$	20,869	$	22,831	$	44,142	$	48,457
Basic Earnings Per Share	$	1.45	$	1.55	$	3.06	$	3.28
Diluted Earnings Per Share	$	1.45	$	1.54	$	3.05	$	3.26

See notes to unaudited consolidated financial statements.

2

TOMPKINS FINANCIAL CORPORATION

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

	Three Months Ended
(In thousands) (Unaudited)	06/30/2022		06/30/2021
Net income attributable to noncontrolling interests and Tompkins Financial Corporation	$	20,901	$	22,862
Other comprehensive (loss) income, net of tax:
Available-for-sale debt securities:
Change in net unrealized gain/(loss) during the period	(43,449)		8,489
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0		0
Employee benefit plans:
Amortization of net retirement plan actuarial loss	389		537
Amortization of net retirement plan prior service cost	40		42
Other comprehensive (loss) income	(43,020)		9,068
Subtotal comprehensive (loss) income attributable to noncontrolling interests and Tompkins Financial Corporation	(22,119)		31,930
Less: Net income attributable to noncontrolling interests	(32)		(31)
Total comprehensive (loss) income attributable to Tompkins Financial Corporation	$	(22,151)	$	31,899

	Six Months Ended
(In thousands) (Unaudited)	06/30/2022		06/30/2021
Net income attributable to noncontrolling interests and Tompkins Financial Corporation	$	44,205	$	48,521
Other comprehensive income, net of tax:
Available-for-sale debt securities:
Change in net unrealized gain/(loss) during the period	(123,854)		(16,757)
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0		(249)
Employee benefit plans:
Amortization of net retirement plan actuarial loss	853		1,114
Amortization of net retirement plan prior service cost	82		84
Other comprehensive loss	(122,919)		(15,808)
Subtotal comprehensive (loss) income attributable to noncontrolling interests and Tompkins Financial Corporation	(78,714)		32,713
Less: Net income attributable to noncontrolling interests	(63)		(64)
Total comprehensive (loss) income attributable to Tompkins Financial Corporation	$	(78,777)	$	32,649

See notes to unaudited consolidated financial statements.

3

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended
(In thousands) (Unaudited)	06/30/2022		06/30/2021
OPERATING ACTIVITIES
Net income attributable to Tompkins Financial Corporation	$	44,142	$	48,457
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for credit loss expense	336		(4,901)
Depreciation and amortization of premises, equipment, and software	5,245		5,102
Amortization of intangible assets	437		659
Earnings from corporate owned life insurance	(593)		(1,111)
Net amortization on securities	3,280		6,869
Amortization/accretion related to purchase accounting	(511)		147
Net loss (gain) on securities transactions	84		(317)
Net gain on sale of loans originated for sale	(57)		(582)
Proceeds from sale of loans originated for sale	362		17,379
Loans originated for sale	(1,127)		(15,231)
Net gain on sale of bank premises and equipment	(41)		11
Net excess tax benefit from stock based compensation	29		251
Stock-based compensation expense	1,973		2,434
Decrease in accrued interest receivable	176		4,450
Decrease in accrued interest payable	(86)		(316)
Other, net	(2,132)		(12,808)
Net Cash Provided by Operating Activities	51,517		50,493
INVESTING ACTIVITIES
Proceeds from maturities, calls and principal paydowns of available-for-sale debt securities	134,653		257,771
Proceeds from sales of available-for-sale debt securities	0		38,924
Purchases of available-for-sale debt securities	(149,148)		(712,688)
Purchases of held-to-maturity securities	(28,320)		(151,817)
Net (increase) decrease in loans	(85,037)		85,006
Proceeds from sale/redemptions of Federal Home Loan Bank stock	25,148		3,557
Purchases of Federal Home Loan Bank and other stock	(32,065)		(3,166)
Proceeds from sale of bank premises and equipment	123		63
Purchases of bank premises, equipment and software	(4,774)		(1,955)
Redemption of corporate owned life insurance	0		169
Other, net	(142)		124
Net Cash Used in Investing Activities	(139,562)		(484,012)
FINANCING ACTIVITIES
Net increase in demand, money market, and savings deposits	22,907		435,312
Net decrease in time deposits	(44,583)		(35,799)
Net decrease in Federal funds purchased and securities sold under agreements to repurchase	(16,712)		(13,711)
Increase in other borrowings	235,600		0
Repayment of other borrowings	(64,000)		(20,000)
Redemption of trust preferred debentures	0		(5,150)
Cash dividends	(16,634)		(16,097)
Repurchase of common stock	(14,128)		(7,983)
Shares issued for dividend reinvestment plan	0		2
Shares issued for employee stock ownership plan	2,951		0
Net shares issued related to restricted stock awards	(29)		0
Net proceeds from exercise of stock options	(42)		(503)
Net Cash Provided by Financing Activities	105,330		336,071
Net Increase (Decrease) in Cash and Cash Equivalents	17,285		(97,448)
Cash and cash equivalents at beginning of period	63,107		388,462
Total Cash and Cash Equivalents at End of Period	$	80,392	$	291,014

See notes to unaudited consolidated financial statements.

4

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended
(In thousands) (Unaudited)	06/30/2022		06/30/2021
Supplemental Information:
Cash paid during the year for - Interest	$	5,578	$	10,288
Cash paid during the year for - Taxes	10,871		19,341
Transfer of loans to other real estate owned	82		0
Right-of-use assets obtained in exchange for new lease liabilities	568		21

See notes to unaudited consolidated financial statements.

5

TOMPKINS FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(In thousands except share and per share data) (Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Treasury Stock		Non- controlling Interests		Total
Balances at April 1, 2021	$	1,494	$	333,247	$	435,990	$	(56,950)	$	(5,288)	$	1,443	$	709,936
Net income attributable to noncontrolling interests and Tompkins Financial Corporation					22,831						31		22,862
Other comprehensive income							9,068						9,068
Total Comprehensive Income													31,930
Cash dividends ($0.54 per share)					(8,048)								(8,048)
Net exercise of stock options (5,377 shares)	1		(352)										(351)
Common stock repurchased and returned to unissued status (80,004 shares)	(8)		(6,467)										(6,475)
Shares issued for dividend reinvestment plan (32 shares)	0		2										2
Stock-based compensation expense			1,259										1,259
Directors deferred compensation plan (2,394 shares)			192						(192)				0
Restricted stock activity (2,317 shares)													0
Balances at June 30, 2021	$	1,487	$	327,881	$	450,773	$	(47,882)	$	(5,480)	$	1,474	$	728,253
Balances at April 1, 2022	$	1,460	$	305,880	$	490,200	$	(135,849)	$	(5,642)	$	1,443	$	657,492
Net income attributable to noncontrolling interests and Tompkins Financial Corporation					20,869						32		20,901
Other comprehensive loss							(43,020)						(43,020)
Total Comprehensive Income													(22,119)
Cash dividends ($0.57 per share)					(8,299)								(8,299)
Common stock repurchased and returned to unissued status (49,629 shares)	(5)		(3,753)										(3,758)
Stock-based compensation expense			1,028										1,028
Directors deferred compensation plan (2,688 shares)			205						(205)				0
Restricted stock activity (7,217 shares)	(1)		(25)										(26)
Balances at June 30, 2022	$	1,454	$	303,335	$	502,770	$	(178,869)	$	(5,847)	$	1,475	$	624,318

6

(In thousands except share and per share data)(Unaudited)	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Treasury Stock		Non- controlling Interests		Total
Balances at January 1, 2021	$	1,496	$	333,976	$	418,413	$	(32,074)	$	(5,534)	$	1,412	$	717,689
Net income attributable to noncontrolling interests and Tompkins Financial Corporation					48,457						64		48,521
Other comprehensive loss							(15,808)						(15,808)
Total Comprehensive Income													32,713
Cash dividends ($1.08 per share)					(16,097)								(16,097)
Net exercise of stock options (8,110 shares)	1		(504)										(503)
Common stock repurchased and returned to unissued status (101,535 shares)	(10)		(7,973)										(7,983)
Shares issued for dividend reinvestment plan (32 shares)	0		2										2
Stock-based compensation expense			2,434										2,434
Directors deferred compensation plan (4,001 shares)			(54)						54				0
Restricted stock activity (5,213 shares)													0
Partial repurchase of noncontrolling interest											(2)		(2)
Balances at June 30, 2021	$	1,487	$	327,881	$	450,773	$	(47,882)	$	(5,480)	$	1,474	$	728,253
Balances at January 1, 2022	$	1,470	$	312,538	$	475,262	$	(55,950)	$	(5,791)	$	1,412	$	728,941
Net income attributable to noncontrolling interests and Tompkins Financial Corporation					44,142						63		44,205
Other comprehensive loss							(122,919)						(122,919)
Total Comprehensive Loss													(78,714)
Cash dividends ($1.14 per share)					(16,634)								(16,634)
Net exercise of stock options (630 shares)			(42)										(42)
Common stock repurchased and returned to unissued status (179,797 shares)	(18)		(14,110)										(14,128)
Stock-based compensation expense			1,973										1,973
Shares issued for employee stock ownership plan (37,454 shares)	4		2,947										2,951
Directors deferred compensation plan ((1,679) shares)			56						(56)				0
Restricted stock activity (14,684 shares)	(2)		(27)										(29)
Balances at June 30, 2022	$	1,454	$	303,335	$	502,770	$	(178,869)	$	(5,847)	$	1,475	$	624,318

See notes to unaudited consolidated financial statements

7

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Business

Tompkins Financial Corporation ("Tompkins" or the "Company") is headquartered in Ithaca, New York and is registered as a Financial Holding Company with the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended. The Company is a locally oriented, community-based financial services organization that offers a full array of products and services, including commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. Effective January 1, 2022, the Company's four wholly-owned banking subsidiaries were combined into one bank, with the Bank of of Castile, Mahopac Bank, and VIST Bank merging with and into Tompkins Trust Company (the "Trust Company") with the Trust Company as the surviving institution. Immediately following the merger, the Trust Company changed its name to Tompkins Community Bank. At June 30, 2022, the Company had one wholly-owned banking subsidiary, Tompkins Community Bank. The Company also has a wholly-owned insurance agency subsidiary, Tompkins Insurance Agencies, Inc. ("Tompkins Insurance"). Tompkins Community Bank provides a full array of trust and investment services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning as well as life, disability and long-term care insurance services. The Company’s principal offices are located at 118 E. Seneca Street, Ithaca, New York, 14850, and its telephone number is (888) 503-5753. The Company’s common stock is traded on the NYSE American under the symbol "TMP."

As a registered financial holding company, the Company is regulated under the Bank Holding Company Act of 1956 ("BHC Act"), as amended and is subject to examination and comprehensive regulation by the Federal Reserve Board ("FRB"). The Company is also subject to the jurisdiction of the Securities and Exchange Commission ("SEC") and is subject to disclosure and regulatory requirements under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The Company is subject to the rules of the NYSE American for listed companies.

Tompkins Community Bank is subject to examination and comprehensive regulation by various regulatory authorities, including the Federal Deposit Insurance Corporation ("FDIC"), and the New York State Department of Financial Services ("NYSDFS"). Each of these agencies issues regulations and requires the filing of reports describing the activities and financial condition of the entities under its jurisdiction. Likewise, such agencies conduct examinations on a recurring basis to evaluate the safety and soundness of the institutions, and to test compliance with various regulatory requirements, including: consumer protection, privacy, fair lending, the Community Reinvestment Act, the Bank Secrecy Act, sales of non-deposit investments, electronic data processing, and trust department activities. These agencies also examine and regulate the trust business of Tompkins Community Bank.

Tompkins Insurance is subject to examination and regulation by the NYSDFS and the Pennsylvania Insurance Department.

2. Basis of Presentation

The unaudited consolidated financial statements included in this quarterly report do not include all of the information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. In the application of certain accounting policies, management is required to make assumptions regarding the effect of matters that are inherently uncertain. These estimates and assumptions affect the reported amounts of certain assets, liabilities, revenues, and expenses in the unaudited consolidated financial statements. Different amounts could be reported under different conditions, or if different assumptions were used in the application of these accounting policies. The accounting policies that management considers critical in this respect are the determination of the allowance for credit losses and the review of its securities portfolio for other than temporary impairment.

In management’s opinion, the unaudited consolidated financial statements reflect all adjustments of a normal recurring nature. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2022. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Cash and cash equivalents in the consolidated statements of cash flow include cash and noninterest bearing balances due from banks, interest-bearing balances due from banks, and money market funds. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risk on cash and cash equivalents.

8

The consolidated financial information included herein combines the results of operations, the assets, liabilities, and shareholders’ equity of the Company and its subsidiaries. Amounts in the prior periods’ unaudited consolidated financial statements are reclassified when necessary to conform to the current periods’ presentation. All significant intercompany balances and transactions are eliminated in consolidation.

3. Securities

Available-for-Sale Debt Securities

The following tables summarize available-for-sale debt securities held by the Company at June 30, 2022 and December 31, 2021:

	Available-for-Sale Debt Securities
June 30, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	191,051	$	0	$	16,949	$	174,102
Obligations of U.S. Government sponsored entities	863,235		36		69,778		793,493
Obligations of U.S. states and political subdivisions	95,661		54		7,637		88,078
Mortgage-backed securities – residential, issued by
U.S. Government agencies	63,185		38		4,109		59,114
U.S. Government sponsored entities	859,388		18		84,835		774,571
U.S. corporate debt securities	2,500		0		140		2,360
Total available-for-sale debt securities	$	2,075,020	$	146	$	183,448	$	1,891,718

	Available-for-Sale Debt Securities
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	160,291	$	85	$	2,542	$	157,834
Obligations of U.S. Government sponsored entities	843,218		4,527		15,372		832,373
Obligations of U.S. states and political subdivisions	102,177		2,092		100		104,169
Mortgage-backed securities – residential, issued by
U.S. Government agencies	76,502		1,187		532		77,157
U.S. Government sponsored entities	879,102		5,735		14,281		870,556
U.S. corporate debt securities	2,500		0		76		2,424
Total available-for-sale debt securities	$	2,063,790	$	13,626	$	32,903	$	2,044,513

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Held-to-Maturity Debt Securities

The following tables summarize held-to-maturity debt securities held by the Company at June 30, 2022 and December 31, 2021:

	Held-to-Maturity Securities
June 30, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	86,582	$	0	$	9,237	$	77,345
Obligations of U.S. Government sponsored entities	225,733		0		28,418		197,315
Total held-to-maturity debt securities	$	312,315	$	0	$	37,655	$	274,660

	Held-to-Maturity Securities
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	86,689	$	279	$	600	$	86,368
Obligations of U.S. Government sponsored entities	197,320		389		1,789		195,920
Total held-to-maturity debt securities	$	284,009	$	668	$	2,389	$	282,288

The Company may from time to time sell debt securities from its available-for-sale portfolio. Realized gains on sales of available-for-sale debt securities were $0 for the three and six months ended June 30, 2022 and $0 and $329,000 for the three and six months ended June 30, 2021. Realized losses on available-for-sale debt securities were $0 for both the three and six months ended June 30, 2022, and for the three and six months ended June 30, 2021. Proceeds from the sale of available-for-sale debt securities were $0 for the three and six months ended June 30, 2022, and $2.2 million and $38.9 million for the three and six months ended June 30, 2021, respectively. Sales of available-for-sale investment securities were the result of general investment portfolio and interest rate risk management. The Company's investment portfolio includes callable securities that may be called prior to maturity. There were no realized gains or losses on called available-for-sale debt securities for both the three and six months ended June 30, 2022 and June 30, 2021. The Company also recognized net losses of $36,700 and $83,700 for the three and six months ended June 30, 2022, and net losses of $0 and $12,000 for the three and six months ended June 30, 2021 on equity securities, reflecting the change in fair value.

The following table summarizes available-for-sale debt securities that had unrealized losses at June 30, 2022, and December 31, 2021:

June 30, 2022	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	169,550	$	16,547	$	4,552	$	402	$	174,102	$	16,949
Obligations of U.S. Government sponsored entities	353,414		23,720		411,422		46,058		764,836		69,778
Obligations of U.S. states and political subdivisions	71,476		6,901		3,123		736		74,599		7,637
Mortgage-backed securities – residential, issued by
U.S. Government agencies	36,509		1,299		21,389		2,810		57,898		4,109
U.S. Government sponsored entities	520,389		35,937		250,441		48,898		770,830		84,835
U.S. corporate debt securities	0		0		2,360		140		2,360		140
Total available-for-sale debt securities	$	1,151,338	$	84,404	$	693,287	$	99,044	$	1,844,625	$	183,448

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December 31, 2021	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	147,810	$	2,542	$	0	$	0	$	147,810	$	2,542
Obligations of U.S. Government sponsored entities	362,895		6,694		289,210		8,678		652,105		15,372
Obligations of U.S. states and political subdivisions	9,700		85		1,283		15		10,983		100
Mortgage-backed securities – residential, issued by
U.S. Government agencies	22,074		160		16,846		372		38,920		532
U.S. Government sponsored entities	553,351		11,440		84,537		2,841		637,888		14,281
U.S. corporate debt securities	0		0		2,424		76		2,424		76
Total available-for-sale debt securities	$	1,095,830	$	20,921	$	394,300	$	11,982	$	1,490,130	$	32,903

The following table summarizes held-to-maturity debt securities that had unrealized losses at June 30, 2022 and December 31, 2021:

June 30, 2022	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	77,345	$	9,237	$	0	$	0	$	77,345	$	9,237
Obligations of U.S. Government sponsored entities	197,315		28,418		$	0	$	0	$	197,315	28,418
Total held-to-maturity debt securities	$	274,660	$	37,655	$	0	$	0	$	274,660	$	37,655

December 31, 2021	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	35,280	$	600	$	0	$	0	$	35,280	$	600
Obligations of U.S. Government sponsored entities	84,592		1,789		0		0		84,592		1,789
Total held-to-maturity debt securities	$	119,872	$	2,389	$	0	$	0	$	119,872	$	2,389

The Company evaluates available-for-sale debt securities for expected credit losses ("ECL") in unrealized loss positions at each measurement date to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors.

Factors that may be indicative of ECL include, but are not limited to, the following:

• Extent to which the fair value is less than the amortized cost basis.

• Adverse conditions specifically related to the security, an industry, or geographic area (changes in technology,

business practice).

• Payment structure of the debt security with respect to underlying issuer or obligor.

• Failure of the issuer to make scheduled payment of principal and/or interest.

• Changes to the rating of a security or issuer by a nationally recognized statistical rating organization.

• Changes in tax or regulatory guidelines that impact a security or underlying issuer.

For available-for-sale debt securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the fair value below the amortized cost basis (technical impairment) is the result of changes in interest rates or reflects a fundamental change in the credit worthiness of the underlying issuer. Any impairment that is not credit related is recognized in other comprehensive income (loss), net of applicable taxes. Credit-related impairment is recognized as an

11

allowance for credit losses ("ACL") on the Statement of Condition, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to net income may be reversed if conditions change.

The gross unrealized losses reported for residential mortgage-backed securities relate to investment securities issued by U.S. government sponsored entities such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and

U.S. government agencies such as Government National Mortgage Association. The total gross unrealized losses, shown in the tables above, were primarily attributable to changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit-related quality of the investment securities. The Company does not have the intent to sell these securities and does not believe it is more likely than not that the Company will be required to sell these securities before a recovery of amortized cost.

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has made the accounting policy election to exclude accrued interest receivable on held-to-maturity debt securities from the estimate of credit losses. As of June 30, 2022, the held-to-maturity portfolio consisted of U.S. Treasury securities and securities issued by U.S. government-sponsored enterprises, including The Federal National Mortgage Agency and the Federal Farm Credit Banks Funding Corporation. U.S. Treasury securities are backed by the full faith and credit of and/or guaranteed by the U.S. government, and it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities. Securities issued by U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as "risk-free," and have a long history of zero credit loss. As such, the Company did not record an allowance for credit losses for these securities as of June 30, 2022, or December 31, 2021.

The amortized cost and estimated fair value of debt securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities are shown separately since they are not due at a single maturity date.

June 30, 2022
(In thousands)	Amortized Cost		Fair Value
Available-for-sale debt securities:
Due in one year or less	$	61,909	$	61,879
Due after one year through five years	534,330		503,095
Due after five years through ten years	505,724		451,324
Due after ten years	50,484		41,735
Total	1,152,447		1,058,033
Mortgage-backed securities	922,573		833,685
Total available-for-sale debt securities	$	2,075,020	$	1,891,718

December 31, 2021
(In thousands)	Amortized Cost		Fair Value
Available-for-sale debt securities:
Due in one year or less	$	77,159	$	77,892
Due after one year through five years	474,537		471,776
Due after five years through ten years	501,748		492,573
Due after ten years	54,742		54,559
Total	1,108,186		1,096,800
Mortgage-backed securities	955,604		947,713
Total available-for-sale debt securities	$	2,063,790	$	2,044,513

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June 30, 2022
(In thousands)	Amortized Cost		Fair Value
Held-to-maturity debt securities:
Due after five years through ten years	$	312,315	$	274,660
Total held-to-maturity debt securities	$	312,315	$	274,660

December 31, 2021
(In thousands)	Amortized Cost		Fair Value
Held-to-maturity debt securities:
Due after five years through ten years	$	284,009	$	282,288
Total held-to-maturity debt securities	$	284,009	$	282,288

The Company also holds non-marketable Federal Home Loan Bank New York ("FHLBNY") stock and non-marketable Atlantic Community Bankers Bank ("ACBB") stock, all of which are required to be held for regulatory purposes and for borrowing availability. The required investment in FHLB stock is tied to the Company’s borrowing levels with the FHLB. The required investment in FHLB stock is tied to the Company’s borrowing levels with the FHLB. Holdings of FHLBNY stock and ACBB stock totaled $17.8 million and $95,000, respectively, at June 30, 2022. These securities are carried at par, which is also cost. The FHLBNY continues to pay dividends and repurchase stock. Quarterly, we evaluate our investment in the FHLB for impairment. We evaluate recent and long-term operating performance, liquidity, funding and capital positions, stock repurchase history, dividend history and impact of legislative and regulatory changes. Based on our most recent evaluation, as of June 30, 2022, we determined that no impairment write-downs were required.

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4. Loans and Leases

Loans and leases at June 30, 2022 and December 31, 2021 were as follows:

(In thousands)	06/30/2022		12/31/2021
Commercial and industrial
Agriculture	$	69,291	$	99,172
Commercial and industrial other	717,837		699,121
PPP loans*	3,499		71,260
Subtotal commercial and industrial	790,627		869,553
Commercial real estate
Construction	208,695		178,582
Agriculture	200,089		195,973
Commercial real estate other	2,361,790		2,278,599
Subtotal commercial real estate	2,770,574		2,653,154
Residential real estate
Home equity	181,672		182,671
Mortgages	1,341,663		1,290,911
Subtotal residential real estate	1,523,335		1,473,582
Consumer and other
Indirect	3,196		4,655
Consumer and other	65,033		67,396
Subtotal consumer and other	68,229		72,051
Leases	14,019		13,948
Total loans and leases	5,166,784		5,082,288
Less: unearned income and deferred costs and fees	(4,281)		(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	$	5,162,503	$	5,075,467
*SBA Paycheck Protection Program ("PPP")

The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures. Management reviews these policies and procedures on a regular basis. The Company discussed its lending policies and underwriting guidelines for its various lending portfolios in Note 3 – "Loans and Leases" in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. There have been no significant changes in these policies and guidelines since the date of that report. As such, these policies are reflective of new originations as well as those balances held at December 31, 2021. The Company’s Board of Directors approves the lending policies at least annually. The Company recognizes that exceptions to policy guidelines may occasionally occur and has established procedures for approving exceptions to these policy guidelines. Management has also implemented reporting systems to monitor loan origination, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments are due. Generally loans are placed on nonaccrual status if principal or interest payments become 90 days or more past due and/or management deems the collectability of the principal and/or interest to be in question as well as when required by regulatory agencies. When interest accrual is discontinued, all unpaid accrued interest is reversed. Payments received on loans on nonaccrual are generally applied to reduce the principal balance of the loan. Loans are generally returned to accrual status when all the principal and interest amounts due are brought current, the borrower has established a payment history, and future payments are reasonably assured. When management determines that the collection of principal in full is not probable, management will charge-off a partial amount or full amount of the loan balance. Management considers specific facts and circumstances relative to each individual credit in making such a determination. For residential and consumer loans, management uses specific regulatory guidance and thresholds for determining charge-offs.

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The below tables are an age analysis of past due loans, segregated by class of loans, as of June 30, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	33	$	0	$	0	$	33	$	69,258	$	69,291
Commercial and industrial other	875		923		92		1,890		715,947		717,837
PPP loans	53		1		0		54		3,445		3,499
Subtotal commercial and industrial	961		924		92		1,977		788,650		790,627
Commercial real estate
Construction	0		0		0		0		208,695		208,695
Agriculture	219		0		0		219		199,870		200,089
Commercial real estate other	253		5,405		5,762		11,420		2,350,370		2,361,790
Subtotal commercial real estate	472		5,405		5,762		11,639		2,758,935		2,770,574
Residential real estate
Home equity	306		0		1,347		1,653		180,019		181,672
Mortgages	0		1,506		5,490		6,996		1,334,667		1,341,663
Subtotal residential real estate	306		1,506		6,837		8,649		1,514,686		1,523,335
Consumer and other
Indirect	64		23		52		139		3,057		3,196
Consumer and other	57		119		89		265		64,768		65,033
Subtotal consumer and other	121		142		141		404		67,825		68,229
Leases	0		0		0		0		14,019		14,019
Total loans and leases	1,860		7,977		12,832		22,669		5,144,115		5,166,784
Less: unearned income and deferred costs and fees	0		0		0		0		(4,281)		(4,281)
Total loans and leases, net of unearned income and deferred costs and fees	$	1,860	$	7,977	$	12,832	$	22,669	$	5,139,834	$	5,162,503

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December 31, 2021
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	0	$	0	$	0	$	0	$	99,172	$	99,172
Commercial and industrial other	506		6		88		600		698,521		699,121
PPP loans	0		0		0		0		71,260		71,260
Subtotal commercial and industrial	506		6		88		600		868,953		869,553
Commercial real estate
Construction	0		0		0		0		178,582		178,582
Agriculture	121		0		0		121		195,852		195,973
Commercial real estate other	150		257		3,305		3,712		2,274,887		2,278,599
Subtotal commercial real estate	271		257		3,305		3,833		2,649,321		2,653,154
Residential real estate
Home equity	441		417		798		1,656		181,015		182,671
Mortgages	7		839		3,917		4,763		1,286,148		1,290,911
Subtotal residential real estate	448		1,256		4,715		6,419		1,467,163		1,473,582
Consumer and other
Indirect	77		86		2		165		4,490		4,655
Consumer and other	120		45		45		210		67,186		67,396
Subtotal consumer and other	197		131		47		375		71,676		72,051
Leases	0		0		0		0		13,948		13,948
Total loans and leases	1,422		1,650		8,155		11,227		5,071,061		5,082,288
Less: unearned income and deferred costs and fees	0		0		0		0		(6,821)		(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	$	1,422	$	1,650	$	8,155	$	11,227	$	5,064,240	$	5,075,467

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The following tables present the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses. The below tables are an age analysis of nonaccrual loans segregated by class of loans, as of June 30, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Commercial and industrial other	$	92	$	293	$	62
Subtotal commercial and industrial	92		293		62
Commercial real estate
Construction	340		0		0
Commercial real estate other	11,354		12,545		0
Subtotal commercial real estate	11,694		12,545		0
Residential real estate
Home equity	419		2,506		0
Mortgages	980		9,030		0
Subtotal residential real estate	1,399		11,536		0
Consumer and other
Indirect	0		175		0
Consumer and other	0		116		0
Subtotal consumer and other	0		291		0
Total loans and leases	$	13,185	$	24,665	$	62

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December 31, 2021
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Commercial and industrial other	$	502	$	533	$	0
Subtotal commercial and industrial	502		533		0
Commercial real estate
Construction	671		671		0
Agriculture	348		456		0
Commercial real estate other	12,483		12,766		0
Subtotal commercial real estate	13,502		13,893		0
Residential real estate
Home equity	380		2,459		0
Mortgages	716		8,719		0
Subtotal residential real estate	1,096		11,178		0
Consumer and other
Indirect	1		246		0
Consumer and other	0		183		0
Subtotal consumer and other	1		429		0
Total loans and leases	$	15,101	$	26,033	$	0

The Company recognized $0 of interest income on nonaccrual loans during the three and six months ended June 30, 2022 and 2021.

5. Allowance for Credit Losses

Management reviews the appropriateness of the allowance for credit losses ("allowance" or "ACL") on a regular basis. Management considers the accounting policy relating to the allowance to be a critical accounting policy, given the inherent uncertainty in evaluating the levels of the allowance required to cover credit losses in the portfolio and the material effect that assumptions could have on the Company’s results of operations. The Company has developed a methodology to measure the amount of estimated credit loss exposure inherent in the loan portfolio to assure that an appropriate allowance is maintained. The Company’s methodology is based upon guidance provided in SEC Staff Accounting Bulletin No. 119, Measurement of Credit Losses on Financial Instruments ("CECL"), and Financial Instruments - Credit Losses and ASC Topic 326, Financial Instruments - Credit Losses (ASU 2016-3).

The Company uses a discounted cash flow ("DCF") method to estimate expected credit losses for all loan segments excluding the leasing segment. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, recovery lag, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on internal historical data.

The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loans utilizing the DCF method, management utilizes forecasts of national unemployment and a one year percentage change in national gross domestic product as loss drivers in the model.

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For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

The combination of adjustments for credit expectations and timing expectations produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce a net present value of expected cash flows ("NPV"). An ACL is established for the difference between the NPV and amortized cost basis.

Since the methodology is based upon historical experience and trends, current conditions, and reasonable and supportable forecasts, as well as management’s judgment, factors may arise that result in different estimates. While management’s evaluation of the allowance as of June 30, 2022, considers the allowance to be appropriate, under certain conditions or assumptions, the Company would need to increase or decrease the allowance. In addition, various federal and State regulatory agencies, as part of their examination process, review the Company's allowance and may require the Company to recognize additions to the allowance based on their judgements and information available to them at the time of their examinations.

Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, and commercial letters of credit. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancellable, through a charge to credit loss expense for off-balance sheet credit exposures included in provision expense in the Company's consolidated statements of income.

The following table details activity in the allowance for credit losses on loans for the three and six months ended June 30, 2022 and 2021. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Three Months Ended June 30, 2022
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	7,027	$	22,982	$	10,447	$	1,588	$	82	$	42,126
Charge-offs	0		(23)		(51)		(82)		0		(156)
Recoveries	6		764		197		76		0		1,043
(Credit) provision for credit loss expense	781		(496)		489		9		(3)		780
Ending Balance	$	7,814	$	23,227	$	11,082	$	1,591	$	79	$	43,793

Three Months Ended June 30, 2021
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	7,750	$	30,467	$	9,470	$	1,583	$	69	$	49,339
Charge-offs	(2)		0		(48)		(60)		0		(110)
Recoveries	4		826		125		39		0		994
(Credit) provision for credit loss expense	(639)		(2,092)		(13)		28		(2)		(2,718)
Ending Balance	$	7,113	$	29,201	$	9,534	$	1,590	$	67	$	47,505

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Six Months Ended June 30, 2022
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	6,335	$	24,813	$	10,139	$	1,492	$	64	$	42,843
Charge-offs	(23)		(50)		(51)		(278)		0		(402)
Recoveries	26		805		307		168		0		1,306
(Credit) provision for credit loss expense	1,476		(2,341)		687		209		15		46
Ending Balance	$	7,814	$	23,227	$	11,082	$	1,591	$	79	$	43,793

Six Months Ended June 30, 2021
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	9,239	$	30,546	$	10,257	$	1,562	$	65	$	51,669
Charge-offs	(118)		0		(46)		(152)		0		(316)
Recoveries	101		1,039		158		82		0		1,380
(Credit) provision for credit loss expense	(2,109)		(2,384)		(835)		98		2		(5,228)
Ending Balance	$	7,113	$	29,201	$	9,534	$	1,590	$	67	$	47,505

The following table details activity in the liabilities for off-balance sheet credit exposures for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30,
(In thousands)	2022		2021
Liabilities for off-balance sheet credit exposures at beginning of period	$	2,720	$	2,600
Provision for credit loss expense related to off-balance sheet credit exposures	76		(353)
Liabilities for off-balance sheet credit exposures at end of period	$	2,796	$	2,247

Six Months Ended June 30,
(In thousands)	2022		2021
Liabilities for off-balance sheet credit exposures at beginning of period	$	2,506	$	1,920
Provision for credit loss expense related to off-balance sheet credit exposures	290		327
Liabilities for off-balance sheet credit exposures at end of period	$	2,796	$	2,247

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:

(In thousands)	Real Estate		Business Assets		Other		Total		ACL Allocation
June 30, 2022
Commercial and Industrial	$	23	$	363	$	36	$	422	$	23
Commercial Real Estate	11,484		0		551		12,035		0
Commercial Real Estate - Agriculture	1,534		0		0		1,534		0
Total	$	13,041	$	363	$	587	$	13,991	$	23

20

(In thousands)	Real Estate		Business Assets		Other		Total		ACL Allocation
December 31, 2021
Commercial and Industrial	$	142	$	395	$	328	$	865	$	26
Commercial Real Estate	13,334		0		1,931		15,265		40
Residential Real Estate	32		0		0		32		1
Total	$	13,508	$	395	$	2,259	$	16,162	$	67

Loans are considered modified in a troubled debt restructuring ("TDR") when, due to a borrower’s financial difficulties, the Company makes concessions to the borrower that it would not otherwise consider. These modifications may include, among others, an extension for the term of the loan, and granting a period when interest-only payments can be made with the principal payments made over the remaining term of the loan or at maturity.

There were no new TDRs in the three and six months ended June 30, 2022 or 2021.

21

The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Commercial and Industrial - Other:
Pass	$	78,886	$	106,368	$	47,449	$	48,848	$	38,634	$	169,002	$	214,034	$	2,946	$	706,167
Special Mention	0		142		829		298		62		1,483		556		0		3,370
Substandard	0		127		522		66		484		641		6,460		0		8,300
Total Commercial and Industrial - Other	$	78,886	$	106,637	$	48,800	$	49,212	$	39,180	$	171,126	$	221,050	$	2,946	$	717,837
Commercial and Industrial - PPP:
Pass	$	0	$	3,086	$	413	$	0	$	0	$	0	$	0	$	0	$	3,499
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	$	0	$	3,086	$	413	$	0	$	0	$	0	$	0	$	0	$	3,499
Commercial and Industrial - Agriculture:
Pass	$	8,481	$	6,259	$	5,925	$	4,850	$	8,762	$	6,290	$	24,915	$	0	$	65,482
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		78		0		0		2,311		1,420		0		3,809
Total Commercial and Industrial - Agriculture	$	8,481	$	6,259	$	6,003	$	4,850	$	8,762	$	8,601	$	26,335	$	0	$	69,291
Commercial Real Estate
Pass	$	206,650	$	364,170	$	293,749	$	291,194	$	213,218	$	857,789	$	15,881	$	20,735	$	2,263,386
Special Mention	0		3,448		1,710		11,618		2,993		48,522		0		0		68,291
Substandard	0		113		0		3,602		2,408		23,635		355		0		30,113
Total Commercial Real Estate	$	206,650	$	367,731	$	295,459	$	306,414	$	218,619	$	929,946	$	16,236	$	20,735	$	2,361,790
Commercial Real Estate - Agriculture:
Pass	$	15,796	$	22,452	$	21,568	$	26,406	$	38,742	$	69,521	$	3,202	$	1,260	$	198,947
Special Mention	0		0		0		219		0		391		0		0		610
Substandard	0		0		0		0		38		494		0		0		532
Total Commercial Real Estate - Agriculture	$	15,796	$	22,452	$	21,568	$	26,625	$	38,780	$	70,406	$	3,202	$	1,260	$	200,089
Commercial Real Estate - Construction
Pass	$	5,636	$	64,721	$	67,810	$	26,733	$	9,751	$	14,156	$	19,189	$	699	$	208,695
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Total Commercial Real Estate - Construction	$	5,636	$	64,721	$	67,810	$	26,733	$	9,751	$	14,156	$	19,189	$	699	$	208,695

22

December 31, 2021
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Commercial and Industrial - Other:
Internal risk grade:
Pass	$	123,996	$	58,432	$	54,116	$	42,093	$	35,725	$	239,093	$	125,476	$	10,039	$	688,970
Special Mention	156		770		450		100		201		393		1,417		0		3,487
Substandard	179		584		47		575		0		637		4,642		0		6,664
Total Commercial and Industrial - Other	$	124,331	$	59,786	$	54,613	$	42,768	$	35,926	$	240,123	$	131,535	$	10,039	$	699,121
Commercial and Industrial - Agriculture:
Pass	$	8,573	$	6,782	$	5,700	$	10,136	$	6,867	$	3,186	$	53,145	$	595	$	94,984
Special Mention	0		0		0		23		0		0		0		0		23
Substandard	0		85		11		0		93		2,316		1,660		0		4,165
Total Commercial and Industrial - Agriculture	$	8,573	$	6,867	$	5,711	$	10,159	$	6,960	$	5,502	$	54,805	$	595	$	99,172
Commercial and Industrial - PPP:
Pass	$	71,260	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	71,260
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	$	71,260	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	71,260
Commercial Real Estate
Pass	$	325,874	$	271,680	$	249,266	$	201,992	$	212,991	$	810,713	$	44,264	$	43,225	$	2,160,005
Special Mention	0		1,763		11,772		3,217		2,167		61,723		358		0		81,000
Substandard	3,482		0		2,262		2,518		8,509		20,401		422		0		37,594
Total Commercial Real Estate	$	329,356	$	273,443	$	263,300	$	207,727	$	223,667	$	892,837	$	45,044	$	43,225	$	2,278,599
Commercial Real Estate - Agriculture:
Pass	$	23,151	$	21,856	$	28,943	$	41,064	$	23,195	$	50,809	$	1,949	$	2,850	$	193,817
Special Mention	0		479		0		0		0		350		35		0		864
Substandard	0		0		0		39		0		1,253		0		0		1,292
Total Commercial Real Estate - Agriculture	$	23,151	$	22,335	$	28,943	$	41,103	$	23,195	$	52,412	$	1,984	$	2,850	$	195,973
Commercial Real Estate - Construction
Pass	$	12,840	$	10,025	$	16,325	$	7,542	$	1,274	$	6,559	$	112,537	$	10,037	$	177,139
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		643		800		0		1,443
Total Commercial Real Estate - Construction	$	12,840	$	10,025	$	16,325	$	7,542	$	1,274	$	7,202	$	113,337	$	10,037	$	178,582

23

The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2022 and December 31, 2021, continued:

June 30, 2022
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Residential - Home Equity
Performing	$	1,049	$	1,166	$	697	$	1,117	$	887	$	4,060	$	169,371	$	819	$	179,166
Nonperforming	0		0		0		15		0		75		2,416		0		2,506
Total Residential - Home Equity	$	1,049	$	1,166	$	697	$	1,132	$	887	$	4,135	$	171,787	$	819	$	181,672
Residential - Mortgages
Performing	$	122,172	$	276,961	$	251,305	$	124,191	$	70,956	$	487,048	$	0	$	0	$	1,332,633
Nonperforming	0		0		246		608		1,112		7,064		0		0		9,030
Total Residential - Mortgages	$	122,172	$	276,961	$	251,551	$	124,799	$	72,068	$	494,112	$	0	$	0	$	1,341,663
Consumer - Direct
Performing	$	12,974	$	17,506	$	8,475	$	7,419	$	5,113	$	8,811	$	4,619	$	0	$	64,917
Nonperforming	0		0		3		23		77		10		3		$	0	116
Total Consumer - Direct	$	12,974	$	17,506	$	8,478	$	7,442	$	5,190	$	8,821	$	4,622	$	0	$	65,033
Consumer - Indirect
Performing	$	0	$	181	$	189	$	1,549	$	915	$	187	$	0	$	0	$	3,021
Nonperforming	0		0		0		129		37		9		0		0		175
Total Consumer - Indirect	$	0	$	181	$	189	$	1,678	$	952	$	196	$	0	$	0	$	3,196

24

December 31, 2021
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Residential - Home Equity
Performing	$	2,033	$	1,142	$	3,041	$	1,600	$	1,572	$	3,144	$	161,630	$	6,050	$	180,212
Nonperforming	0		0		16		0		0		604		1,839		0		2,459
Total Residential - Home Equity	$	2,033	$	1,142	$	3,057	$	1,600	$	1,572	$	3,748	$	163,469	$	6,050	$	182,671
Residential - Mortgages
Performing	$	324,967	$	282,202	$	162,574	$	97,778	$	124,221	$	275,133	$	14,112	$	1,205	$	1,282,192
Nonperforming	0		0		241		702		693		7,060		23		0		8,719
Total Residential - Mortgages	$	324,967	$	282,202	$	162,815	$	98,480	$	124,914	$	282,193	$	14,135	$	1,205	$	1,290,911
Consumer - Direct
Performing	$	20,653	$	10,735	$	9,397	$	5,542	$	4,849	$	10,602	$	5,435	$	0	$	67,213
Nonperforming	0		9		44		117		12		0		1		0		183
Total Consumer - Direct	$	20,653	$	10,744	$	9,441	$	5,659	$	4,861	$	10,602	$	5,436	$	0	$	67,396
Consumer - Indirect
Performing	$	1,809	$	854	$	812	$	506	$	362	$	66	$	0	$	0	$	4,409
Nonperforming	0		2		148		81		1		14		0		0		246
Total Consumer - Indirect	$	1,809	$	856	$	960	$	587	$	363	$	80	$	0	$	0	$	4,655

6. Earnings Per Share

Earnings per share in the table below, for the three and six month periods ended June 30, 2022 and 2021 are calculated under the two-class method as required by ASC Topic 260, Earnings Per Share. ASC 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company has issued restricted stock awards that contain such rights and are therefore considered participating securities. Basic earnings per common share are calculated by dividing net income allocable to common stock by the weighted average number of common shares, excluding participating securities, during the period. Diluted earnings per common share include the dilutive effect of participating securities.

25

	Three Months Ended
(In thousands, except share and per share data)	6/30/2022		6/30/2021
Basic
Net income available to common shareholders	$	20,869	$	22,831
Less: income attributable to unvested stock-based compensation awards	(67)		(164)
Net earnings allocated to common shareholders	20,802		22,667
Weighted average shares outstanding, including unvested stock-based compensation awards	14,524,975		14,886,687
Less: average unvested stock-based compensation awards	(207,560)		(231,913)
Weighted average shares outstanding - Basic	14,317,415		14,654,774
Diluted
Net earnings allocated to common shareholders	20,802		22,667
Weighted average shares outstanding - Basic	14,317,415		14,654,774
Plus: incremental shares from assumed conversion of stock-based compensation awards	70,186		82,961
Weighted average shares outstanding - Diluted	14,387,601		14,737,735
Basic EPS	$	1.45	$	1.55
Diluted EPS	$	1.45	$	1.54

Stock-based compensation awards representing 1,848 and 477 of common shares during the three months ended June 30, 2022 and 2021, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been anti-dilutive.

	Six Months Ended
(In thousands, except share and per share data)	6/30/2022		6/30/2021
Basic
Net income available to common shareholders	$	44,142	$	48,457
Less: income attributable to unvested stock-based compensation awards	(143)		(350)
Net earnings allocated to common shareholders	43,999		48,107
Weighted average shares outstanding, including unvested stock-based compensation awards	14,568,102		14,899,524
Less: unvested stock-based compensation awards	(209,633)		(234,003)
Weighted average shares outstanding - Basic	14,358,469		14,665,521
Diluted
Net earnings allocated to common shareholders	43,999		48,107
Weighted average shares outstanding - Basic	14,358,469		14,665,521
Plus: incremental shares from assumed conversion of stock-based compensation awards	74,183		82,055
Weighted average shares outstanding - Diluted	14,432,652		14,747,576
Basic EPS	$	3.06	$	3.28
Diluted EPS	$	3.05	$	3.26

Stock-based compensation awards representing approximately 6,113 and 8,187 of common shares during the six months ended June 30, 2022 and 2021, respectively were not included in the computations of diluted earnings per common share because the effect on those periods would have been anti-dilutive.

26

7. Other Comprehensive Income (Loss)

The following tables present reclassifications out of accumulated other comprehensive income (loss) for the three and six month periods ended June 30, 2022 and 2021:

	Three Months Ended June 30, 2022
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(57,544)	$	14,095	$	(43,449)
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	(57,544)		14,095		(43,449)
Employee benefit plans:
Amortization of net retirement plan actuarial gain	514		(125)		389
Amortization of net retirement plan prior service cost	53		(13)		40
Employee benefit plans	567		(138)		429
Other comprehensive (loss) income	$	(56,977)	$	13,957	$	(43,020)

	Three Months Ended June 30, 2021
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	11,244	$	(2,755)	$	8,489
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	11,244		(2,755)		8,489
Employee benefit plans:
Amortization of net retirement plan actuarial gain	712		(175)		537
Amortization of net retirement plan prior service cost	55		(13)		42
Employee benefit plans	767		(188)		579
Other comprehensive income (loss)	$	12,011	$	(2,943)	$	9,068

27

	Six Months Ended June 30, 2022
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(164,025)	$	40,171	$	(123,854)
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	(164,025)		40,171		(123,854)
Employee benefit plans:
Amortization of net retirement plan actuarial loss	1,129		(276)		853
Amortization of net retirement plan prior service cost	109		(27)		82
Employee benefit plans	1,238		(303)		935
Other comprehensive (loss) income	$	(162,787)	$	39,868	$	(122,919)

	Six Months Ended June 30, 2021
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(22,197)	$	5,440	$	(16,757)
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	(330)		81		(249)
Net unrealized gains/losses	(22,527)		5,521		(17,006)
Employee benefit plans:
Amortization of net retirement plan actuarial loss	1,476		(362)		1,114
Amortization of net retirement plan prior service cost	111		(27)		84
Employee benefit plans	1,587		(389)		1,198
Other comprehensive (loss) income	$	(20,940)	$	5,132	$	(15,808)

28

The following table presents the activity in our accumulated other comprehensive (loss) income for the periods indicated:

(In thousands)	Available-for- Sale Debt Securities		Employee Benefit Plans		Accumulated Other Comprehensive (Loss) Income
Balance at March 31, 2022	$	(94,965)	$	(40,884)	$	(135,849)
Other comprehensive (loss) income before reclassifications	(43,449)		0		(43,449)
Amounts reclassified from accumulated other comprehensive (loss) income	0		429		429
Net current-period other comprehensive (loss) income	(43,449)		429		(43,020)
Balance at June 30, 2022	$	(138,414)	$	(40,455)	$	(178,869)
Balance at January 1, 2022	$	(14,560)	$	(41,390)	$	(55,950)
Other comprehensive (loss) income before reclassifications	(123,854)		0		(123,854)
Amounts reclassified from accumulated other comprehensive (loss) income	0		935		935
Net current-period other comprehensive (loss) income	(123,854)		935		(122,919)
Balance at June 30, 2022	$	(138,414)	$	(40,455)	$	(178,869)

(In thousands)	Available-for- Sale Debit Securities		Employee Benefit Plans		Accumulated Other Comprehensive (Loss) Income
Balance at March 31, 2021	$	(4,886)	$	(52,064)	$	(56,950)
Other comprehensive income (loss) before reclassifications	8,489		0		8,489
Amounts reclassified from accumulated other comprehensive (loss) income	0		579		579
Net current-period other comprehensive income (loss)	8,489		579		9,068
Balance at June 30, 2021	$	3,603	$	(51,485)	$	(47,882)
Balance at January 1, 2021	$	20,609	$	(52,683)	$	(32,074)
Other comprehensive (loss) income before reclassifications	(16,757)		0		(16,757)
Amounts reclassified from accumulated other comprehensive (loss) income	(249)		1,198		949
Net current-period other comprehensive (loss) income	(17,006)		1,198		(15,808)
Balance at June 30, 2021	$	3,603	$	(51,485)	$	(47,882)

29

The following tables present the amounts reclassified out of each component of accumulated other comprehensive (loss) income for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30, 2022
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following 2
Net retirement plan actuarial loss	(514)		Other operating expense
Net retirement plan prior service cost	(53)		Other operating expense
	(567)		Total before tax
	138		Tax benefit
	$	(429)	Net of tax

Three Months Ended June 30, 2021
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(711)		Other operating expense
Net retirement plan prior service cost	(56)		Other operating expense
	(767)		Total before tax
	188		Tax benefit
	$	(579)	Net of tax

30

Six Months Ended June 30, 2022
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(1,129)		Other operating expense
Net retirement plan prior service cost	(109)		Other operating expense
	(1,238)		Total before tax
	303		Tax benefit
	$	(935)	Net of tax

Six Months Ended June 30, 2021
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	330	Net (loss) gain on securities transactions
	(81)		Tax expense
	249		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(1,475)		Other operating expense
Net retirement plan prior service cost	(111)		Other operating expense
	(1,586)		Total before tax
	388		Tax benefit
	$	(1,198)	Net of tax

1 Amounts in parentheses indicated debits in income statement.

2 The accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost (See Note 8 - "Employee Benefit Plan").

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8. Employee Benefit Plans

The following tables set forth the amount of the net periodic benefit cost recognized by the Company for the Company’s pension plan, post-retirement plan (Life and Health), and supplemental employee retirement plans ("SERP") including the following components: service cost, interest cost, expected return on plan assets for the period, amortization of the unrecognized transitional obligation or transition asset, and the amounts of recognized gains and losses, prior service cost recognized, and gain or loss recognized due to settlement or curtailment.

Components of Net Periodic Benefit Cost

	Pension Benefits				Life and Health				SERP Benefits
	Three Months Ended				Three Months Ended				Three Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021		6/30/2022		6/30/2021
Service cost	$	0	$	0	$	43	$	42	$	(13)	$	55
Interest cost	529		327		59		36		206		147
Expected return on plan assets	(1,474)		(1,411)		0		0		0		0
Amortization of net retirement plan actuarial loss	285		397		46		82		183		233
Amortization of net retirement plan prior service (credit) cost	0		0		(15)		(15)		68		70
Net periodic benefit (income) cost	$	(660)	$	(687)	$	133	$	145	$	444	$	505

	Pension Benefits				Life and Health				SERP Benefits
	Six Months Ended				Six Months Ended				Six Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021		6/30/2022		6/30/2021
Service cost	$	0	$	0	$	87	$	93	$	39	$	115
Interest cost	992		814		111		90		407		346
Expected return on plan assets	(2,942)		(2,826)		0		0		0		0
Amortization of net retirement plan actuarial loss	608		780		98		156		423		540
Amortization of net retirement plan prior service cost (credit)	0		0		(30)		(30)		139		141
Net periodic benefit (income) cost	$	(1,342)	$	(1,232)	$	266	$	309	$	1,008	$	1,142

The service component of net periodic benefit cost for the Company's benefit plans is recorded as a part of salaries and wages in the consolidated statements of income. All other components are recorded as part of other operating expenses in the consolidated statements of income.

The Company realized approximately $934,560 and $1.2 million, net of tax, as amortization of amounts previously recognized in accumulated other comprehensive (loss) income, for the six months ended June 30, 2022 and 2021, respectively.

The Company is not required to contribute to the pension plan, but it may make voluntary contributions. The Company did not contribute to the pension plan in the first six months of 2022 and 2021.

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9. Other Income and Operating Expense

Other income and operating expense totals are presented in the table below. Components of these totals exceeding 1% of the aggregate of total noninterest income and total noninterest expenses for any of the periods presented below are stated separately.

	Three Months Ended				Six Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021
Noninterest Income
Other service charges	$	669	$	710	$	1,296	$	1,379
Earnings from corporate owned life insurance	171		570		593		1,111
Net gains on the sales of loans originated for sale	53		153		57		582
Other income	348		232		771		567
Total other income	$	1,241	$	1,665	$	2,717	$	3,639
Noninterest Expenses
Marketing expense	$	1,456	$	1,132	$	2,513	$	1,627
Professional fees	1,719		1,533		3,325		3,427
Legal fees	498		221		708		441
Technology expense	3,690		2,977		7,373		5,905
Cardholder expense	1,280		875		2,422		1,662
Other expenses	4,386		3,992		8,708		8,293
Total other operating expense	$	13,029	$	10,730	$	25,049	$	21,355

10. Revenue Recognition

As stated in Note 1 - "Summary of Significant Accounting Policies," in the 2021 Annual Report on Form 10-K, the Company adopted ASU No. 2014-09 "Revenue from Contracts with Customers" (ASC 606) and all subsequent ASUs that modified ASC 606, on January 1, 2018. ASC 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of ASC 606. ASC 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of ASC 606.

Insurance Commissions and Fees

Insurance commissions and fees from insurance product sales are typically earned upon the effective date of bound coverage, as no significant performance obligation remains after coverage is bound. Commission revenue on policies billed in installments is now accrued based upon the completion of the performance obligation creating a current asset for the unbilled revenue until such time as an invoice is generated, typically not to exceed twelve months. The impact of these changes was not significant, but it will result in slight variances from quarter to quarter. Contingent commissions are estimated based upon management’s expectations for the year with an appropriate constraint applied and accrued relative to the recognition of the corresponding core commissions.

Trust & Asset Management

Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.

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Mutual Fund & Investment Income

Mutual fund and investment income consists of other recurring revenue streams such as commissions from sales of mutual funds and other investments, and investment advisory fees from the Company’s Strategic Asset Management Services (SAM) wealth management product. Commissions from the sale of mutual funds and other investments are recognized on the trade date, which is when the Company has satisfied its performance obligation. The Company also receives periodic service fees (i.e., trailers) from mutual fund companies typically based on a percentage of net asset value, recorded over time, usually monthly or quarterly, as net asset value is determined. Investment advisor fees from the wealth management product is earned over time and based on an annual percentage rate of the net asset value. The investment advisor fees are charged to the customer’s account in advance on the first month of the quarter, and the revenue is recognized over the following three-month period. The Company does engage a third party, LPL Financial, LLC (LPL), to satisfy part of this performance obligation, and therefore this income is reported net of any corresponding expenses paid to LPL.

Service Charges on Deposit Accounts

Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.

Card Services Income

Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as MasterCard. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. The Company’s performance obligation for fees and exchange are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Other

Other service charges include revenue from processing wire and ACH transfers, lock box service and safe deposit box rental. Payment on these revenue streams is received primarily through a direct charge to the customer’s account, immediately or in the following month, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time.

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The following tables present noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC 606, for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended
(In thousands)	06/30/2022		06/30/2021
Noninterest Income
In-scope of Topic 606:
Commissions and Fees	$	7,872	$	7,488
Installment Billing	(46)		(52)
Refund of Commissions	10		31
Contract Liabilities/Deferred Revenue	(266)		(237)
Contingent Commissions	859		824
Subtotal Insurance Revenues	8,429		8,054
Trust and Asset Management	3,122		3,334
Mutual Fund & Investment Income	1,474		1,383
Subtotal Investment Service Income	4,596		4,717
Service Charges on Deposit Accounts	1,756		1,471
Card Services Income	2,959		2,951
Other	308		297
Noninterest Income (in-scope of ASC 606)	18,048		17,490
Noninterest Income (out-of-scope of ASC 606)	896		1,368
Total Noninterest Income	$	18,944	$	18,858

	Six Months Ended
(In thousands)	06/30/2022		06/30/2021
Noninterest Income
In-scope of Topic 606:
Commissions and Fees	$	15,836	$	15,171
Installment Billing	(2)		(17)
Refund of Commissions	(18)		11
Contract Liabilities/Deferred Revenue	(267)		(237)
Contingent Commissions	2,197		2,292
Subtotal Insurance Revenues	17,746		17,220
Trust and Asset Management	6,625		6,700
Mutual Fund & Investment Income	2,888		2,690
Subtotal Investment Service Income	9,513		9,390
Service Charges on Deposit Accounts	3,535		2,941
Card Services Income	5,502		5,334
Other	624		598
Noninterest Income (in-scope of ASC 606)	36,920		35,483
Noninterest Income (out-of-scope of ASC 606)	2,009		3,358
Total Noninterest Income	$	38,929	$	38,841

Contract Balances

A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration or before payment is due, which would result in contract receivables or assets, respectively. 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 for which payment is due from the customer. The Company’s noninterest revenue streams, excluding some insurance commissions and fees, are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Receivables primarily consist of amounts due for insurance and wealth management services performed for

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which the Company's performance obligations have been fully satisfied. Receivables for the insurance and wealth management services segments amounted to $5.0 million and $2.5 million, respectively, at June 30, 2022, compared to $6.0 million and $2.3 million, respectively, at December 31, 2021. Included in those amounts are contract assets related to contingent income of $1.2 million and $3.0 million, respectively, at June 30, 2022 and December 31, 2021, and contract liabilities of $3.0 million and $1.7 million, respectively at June 30, 2022 and December 31, 2021.

Contract Acquisition Costs

The Company is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less.

11. Financial Guarantees

The Company currently does not issue any guarantees that would require liability recognition or disclosure, other than standby letters of credit. The Company extends standby letters of credit to its customers in the normal course of business. The standby letters of credit are generally short-term. As of June 30, 2022, the Company’s maximum potential obligation under standby letters of credit was $37.5 million compared to $39.8 million at December 31, 2021. Management uses the same credit policies to extend standby letters of credit that it uses for on-balance sheet lending decisions and may require collateral to support standby letters of credit based upon its evaluation of the counterparty. Management does not anticipate any significant losses as a result of these transactions, and has determined that the fair value of standby letters of credit is not significant.

12. Segment and Related Information

The Company manages its operations through three reportable business segments in accordance with the standards set forth in FASB ASC 280, "Segment Reporting": (i) banking ("Banking"), (ii) insurance ("Tompkins Insurance") and (iii) wealth management ("Tompkins Financial Advisors"). The Company’s insurance services and wealth management services, other than trust services, are managed separately from the Banking segment.

Banking

Tompkins Community Bank has thirteen banking offices located in Ithaca, NY and surrounding communities; sixteen banking offices located in the Genesee Valley region of New York State as well as Monroe County; fourteen full-service banking offices located in the counties north of New York City; and twenty banking offices headquartered and operating in the areas surrounding southeastern Pennsylvania.

Insurance

The Company provides property and casualty insurance services and employee benefits consulting through Tompkins Insurance Agencies, Inc., a 100% wholly-owned subsidiary of the Company, headquartered in Batavia, New York. Tompkins Insurance is an independent insurance agency, representing many major insurance carriers and provides employee benefit consulting to employers in Western and Central New York and Southeastern Pennsylvania, assisting them with their medical, group life insurance and group disability insurance. Tompkins Insurance has five stand-alone offices in Western New York.

Wealth Management

The Wealth Management segment is generally organized under the Tompkins Financial Advisors brand. Tompkins Financial Advisors offers a comprehensive suite of financial services to customers, including trust and estate services, investment management and financial and insurance planning for individuals, corporate executives, small business owners and high net worth individuals. Tompkins Financial Advisors has offices in each of the Company’s regional markets.

Summarized financial information concerning the Company’s reportable segments and the reconciliation to the Company’s consolidated results is shown in the following table. Investment in subsidiaries is netted out of the presentations below. The "Intercompany" column identifies the intercompany activities of revenues, expenses and other assets between the banking, insurance and wealth management services segments. The Company accounts for intercompany fees and services at an estimated fair value according to regulatory requirements for the services provided. Intercompany items relate primarily to the use of human resources, information systems, accounting and marketing services provided by any of the banks and the holding company. All other accounting policies are the same as those described in the summary of significant accounting policies in the 2021 Annual Report on Form 10-K.

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Three months ended June 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	60,953	$	1	$	0	$	(1)	$	60,953
Interest expense	2,692		0		0		(1)		2,691
Net interest income	58,261		1		0		0		58,262
Provision for credit loss expense	856		0		0		0		856
Noninterest income	6,329		8,573		4,598		(556)		18,944
Noninterest expense	39,395		6,812		3,469		(556)		49,120
Income before income tax expense	24,339		1,762		1,129		0		27,230
Income tax expense	5,465		494		370		0		6,329
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	18,874		1,268		759		0		20,901
Less: Net income attributable to noncontrolling interests	32		0		0		0		32
Net Income attributable to Tompkins Financial Corporation	$	18,842	$	1,268	$	759	$	0	$	20,869
Depreciation and amortization	$	2,515	$	44	$	36	$	0	$	2,595
Assets	7,786,614		47,222		26,915		(18,290)		7,842,461
Goodwill	64,500		19,866		8,081		0		92,447
Other intangibles, net	1,236		1,830		58		0		3,124
Net loans and leases	5,118,710		0		0		0		5,118,710
Deposits	6,786,754		0		(847)		(16,386)		6,769,521
Total Equity	563,994		34,860		25,464		0		624,318

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Three months ended June 30, 2021
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	59,843	$	0	$	0	$	(8)	$	59,835
Interest expense	4,997		0		0		(8)		4,989
Net interest income	54,846		0		0		0		54,846
Credit for credit loss expense	(3,071)		0		0		0		(3,071)
Noninterest income	6,447		8,163		4,808		(560)		18,858
Noninterest expense	37,879		6,760		3,363		(560)		47,442
Income before income tax expense	26,485		1,403		1,445		0		29,333
Income tax expense	5,729		401		341		0		6,471
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	20,756		1,002		1,104		0		22,862
Less: Net income attributable to noncontrolling interests	31		0		0		0		31
Net Income attributable to Tompkins Financial Corporation	$	20,725	$	1,002	$	1,104	$	0	$	22,831
Depreciation and amortization	$	2,527	$	55	$	14	$	0	$	2,596
Assets	7,987,751		46,590		30,435		(76,568)		7,988,208
Goodwill	64,370		19,866		8,211		0		92,447
Other intangibles, net	1,994		2,201		79		0		4,274
Net loans and leases	5,127,624		0		0		0		5,127,624
Deposits	6,851,924		0		0		(14,924)		6,837,000
Total Equity	667,007		33,101		28,145		0		728,253

Six months ended June 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	120,129	$	2	$	0	$	(2)	$	120,129
Interest expense	5,255		0		0		(2)		5,253
Net interest income	114,874		2		0		0		114,876
Provision for credit loss expense	336		0		0		0		336
Noninterest income	12,522		18,007		9,532		(1,132)		38,929
Noninterest expense	76,584		13,314		7,193		(1,132)		95,959
Income before income tax expense	50,476		4,695		2,339		0		57,510
Income tax expense	11,630		1,310		365		0		13,305
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	38,846		3,385		1,974		0		44,205
Less: Net income attributable to noncontrolling interests	63		0		0		0		63
Net Income attributable to Tompkins Financial Corporation	$	38,783	$	3,385	$	1,974	$	0	$	44,142
Depreciation and amortization	$	5,093	$	88	$	64	$	0	$	5,245

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Six months ended June 30, 2021
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	119,597	$	2	$	0	$	(9)	$	119,590
Interest expense	9,716		0		0		(9)		9,707
Net interest income	109,881		2		0		0		109,883
Provision for credit loss expense	(4,901)		0		0		0		(4,901)
Noninterest income	12,759		17,581		9,591		(1,090)		38,841
Noninterest expense	73,206		13,197		6,640		(1,090)		91,953
Income before income tax expense	54,335		4,386		2,951		0		61,672
Income tax expense	11,243		1,203		705		0		13,151
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	43,092		3,183		2,246		0		48,521
Less: Net income attributable to noncontrolling interests	64		0		0		0		64
Net Income attributable to Tompkins Financial Corporation	$	43,028	$	3,183	$	2,246	$	0	$	48,457
Depreciation and amortization	$	4,965	$	110	$	27	$	0	$	5,102

13. Fair Value Measurements

FASB ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Transfers between levels, when determined to be appropriate, are recognized at the end of each reporting period.

The three levels of the fair value hierarchy under ASC 820 are:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; 

Level 2 – Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

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The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of valuation inputs within the fair value hierarchy used to measure fair value:

Recurring Fair Value Measurements
June 30, 2022
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-sale debt securities
U.S. Treasuries	$	174,102	$	0	$	174,102	$	0
Obligations of U.S. Government sponsored entities	793,493		0		793,493		0
Obligations of U.S. states and political subdivisions	88,078		0		88,078		0
Mortgage-backed securities – residential, issued by:
U.S. Government agencies	59,114		0		59,114		0
U.S. Government sponsored entities	774,571		0		774,571		0
U.S. corporate debt securities	2,360		0		2,360		0
Total Available-for-sale debt securities	$	1,891,718	$	0	$	1,891,718	$	0
Equity securities, at fair value	$	818	$	0	$	0	$	818

Recurring Fair Value Measurements
December 31, 2021
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-sale debt securities
U.S. Treasuries	$	157,834	$	0	$	157,834	$	0
Obligations of U.S. Government sponsored entities	832,373		0		832,373		0
Obligations of U.S. states and political subdivisions	104,169		0		104,169		0
Mortgage-backed securities – residential, issued by:
U.S. Government agencies	77,157		0		77,157		0
U.S. Government sponsored entities	870,556		0		870,556		0
U.S. corporate debt securities	2,424		0		2,424		0
Total Available-for-sale debt securities	$	2,044,513	$	0	$	2,044,513	$	0
Equity securities, at fair value	$	902	$	0	$	0	$	902

Securities: Fair values for U.S. Treasury securities are based on quoted market prices. Fair values for obligations of U.S. government sponsored entities, mortgage-backed securities-residential, obligations of U.S. states and political subdivisions, and U.S. corporate debt securities are based on quoted market prices, where available, as provided by third party pricing vendors. If quoted market prices were not available, fair values are based on quoted market prices of comparable instruments in active markets and/or based upon a matrix pricing methodology, which uses comprehensive interest rate tables to determine market price, movement and yield relationships. These securities are reviewed periodically to determine if there are any events or changes in circumstances that would adversely affect their value.

The change in the fair value of equity securities valued using significant unobservable inputs (level 3), for the periods ended June 30, 2022 and December 31, 2021, was immaterial.

There were no transfers between Levels 1, 2 and 3 for the six months ended June 30, 2022.

The Company determines fair value for its available-for-sale debt securities using an independent bond pricing service for identical assets or very similar securities. The Company determines fair value for its equity securities based on the underlying equity fund’s pricing and valuation procedures which consider recent sales price, market quotations from a pricing service, or market quotes from an independent broker-dealer. The Company has reviewed the pricing sources, including methodologies used, and finds them to be fairly stated.

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Certain assets are measured at fair value on a nonrecurring basis. For the Company, these include loans held for sale, individually evaluated loans, and other real estate owned ("OREO"). For the three and six months ended June 30, 2022, certain individually evaluated loans were remeasured and reported at fair value through a specific valuation allowance and/or partial charge-offs for credit losses based upon the fair value of the underlying collateral. Collateral values are estimated using Level 3 inputs based upon customized discounting criteria. In addition to collateral dependent evaluated loans, certain other real estate owned were remeasured and reported at fair value based upon the fair value of the underlying collateral. The fair values of other real estate owned are estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. In general, the fair values of other real estate owned are based upon appraisals, with discounts made to reflect estimated costs to sell the real estate. Upon initial recognition, fair value write-downs are taken through a charge-off to the allowance for credit losses. Subsequent fair value write-downs on other real estate owned are reported in other noninterest expense.

Three months ended June 30, 2022
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2022		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended 06/30/2022
Individually evaluated loans	$	814	$	0	$	0	$	814	$	59
Other real estate owned	33		0		33		0		0

Three months ended June 30, 2021
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2021		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended 06/30/2021
Individually evaluated loans	$	8,922	$	0	$	8,922	$	0	$	0

Six months ended June 30, 2022
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2022		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Six months ended 06/30/2022
Individually evaluated loans	$	1,320	$	0	$	0	$	1,320	$	59
Other real estate owned	33		0		33		0		22

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Six months ended June 30, 2021
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2021		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Six months ended 06/30/2021
Individually evaluated loans	$	31,619	$	0	$	31,619	$	0	$	0

The fair value estimates, methods and assumptions set forth below for the Company's financial instruments, including those financial instruments carried at cost, are made solely to comply with disclosures required by U.S. GAAP and should be read in conjunction with the financial statements and notes included in this Report.

For loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For real estate loans, fair value of the loan’s collateral is determined by third party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. 

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments at June 30, 2022 and December 31, 2021. The carrying amounts shown in the table are included in the Consolidated Statements of Condition under the indicated captions.

Estimated Fair Value of Financial Instruments
June 30, 2022
(In thousands)	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	80,392	$	80,392	$	80,392	$	0	$	0
Securities - held-to-maturity	312,315		274,660		0		274,660		0
FHLB and other stock	17,913		17,913		0		17,913		0
Accrued interest receivable	22,420		22,420		0		22,420		0
Loans/leases, net1	5,118,710		4,958,348		0		0		4,958,348
Financial Liabilities:
Time deposits	$	594,853	$	585,487	$	0	$	585,487	$	0
Other deposits	6,174,668		6,174,668		0		6,174,668		0
Fed funds purchased and securities sold
under agreements to repurchase	50,075		50,075		0		50,075		0
Other borrowings	295,600		294,234		0		294,234		0
Accrued interest payable	815		815		0		815		0

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Estimated Fair Value of Financial Instruments
December 31, 2021
(In thousands)	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	63,107	$	63,107	$	63,107	$	0	$	0
FHLB and other stock	10,996		10,996		0		10,996		0
Accrued interest receivable	22,597		22,597		0		22,597		0
Loans/leases, net1	5,032,624		5,028,734		0		0		5,028,734
Financial Liabilities:
Time deposits	$	639,674	$	641,517	$	0	$	641,517	$	0
Other deposits	6,151,761		6,151,761		0		6,151,761		0
Fed funds purchased and securities
sold under agreements to repurchase	66,787		66,787		0		66,787		0
Other borrowings	124,000		125,700		0		125,700		0
Accrued interest payable	901		901		0		901		0

1 Lease receivables, although excluded from the scope of ASC Topic 825, are included in the estimated fair value amounts at their carrying value.

The following methods and assumptions were used in estimating fair value disclosures for financial instruments:

Cash and Cash Equivalents: The carrying amounts reported in the Consolidated Statements of Condition for cash, noninterest-bearing deposits, money market funds, and Federal funds sold approximate the fair value of those assets.

FHLB Stock: The carrying amount of FHLB stock approximates fair value. If the stock is redeemed, the Company will receive an amount equal to the par value of the stock. For miscellaneous equity securities, carrying value is cost.

Loans and Leases: Fair value for loans are calculated using an exit price notion. The Company's valuation methodology takes into account factors such as estimated cash flows, including contractual cash flow and assumptions for prepayments; liquidity risk; and credit risk. The fair values of residential loans were estimated using discounted cash flow analyses, based upon available market benchmarks for rates and prepayment assumptions. The fair values of commercial and consumer loans were estimated using discounted cash flow analyses, based upon interest rates currently offered for loans and leases with similar terms and credit quality. The fair values of loans held for sale were determined based upon contractual prices for loans with similar characteristics.

Accrued Interest Receivable and Accrued Interest Payable: The carrying amount of these short term instruments approximate fair value.

Deposits: The fair values disclosed for noninterest bearing accounts and accounts with no stated maturities are equal to the amount payable on demand at the reporting date. The fair value of time deposits is based upon discounted cash flow analyses using rates offered for FHLB advances, which is the Company’s primary alternative source of funds.

Other borrowings: The fair value of other borrowings is based upon discounted cash flow analyses using current rates offered

for FHLB advances, with similar terms.

14. Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the

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amount, sources, and duration of its assets and liabilities. The Company’s existing credit derivatives result from participation in loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities.

Non-designated Hedges

The Company’s existing credit derivatives result from participation in or out of interest rate swaps provided by or to external lenders as part of loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans.

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of condition as of June 30, 2022 and December 31, 2021. The Company began entering into derivative transactions in the second quarter of 2022.

Derivative Liabilities
	June 30, 2022
	Notional		Balance Sheet	Fair
(In thousands)	Amount		Location	Value
Derivatives not designated as hedging instruments
Interest Rate Products	$	0	Other Liabilities	$	0
Other Contracts	7,499		Other Liabilities	37
Total derivatives not designated as hedging instruments				$	37

Tabular Disclosure of the Effect of Derivatives Not Designated as Hedging Instruments on the Income Statement

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the six months ended June 30, 2022:

Effect of Derivatives Not Designated as Hedging Instruments on the Statement of Financial Performance
Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
(In thousands)		June 30, 2022
Interest Rate Products	Other income / (expense)	$	0
Other Contracts	Other income / (expense)	41
Total		$	41

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

BUSINESS

Corporate Overview and Strategic Initiatives

Tompkins Financial Corporation ("Tompkins" or the "Company") is headquartered in Ithaca, New York and is registered as a Financial Holding Company with the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended. The Company is a locally oriented, community-based financial services organization that offers a full array of products and services, including commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. Effective January 1, 2022, the Company's four wholly-owned banking subsidiaries were combined into one bank, with the Bank of of Castile, Mahopac Bank, and VIST Bank merging with and into Tompkins Trust Company (the "Trust Company") with the Trust Company as the surviving institution. Immediately following the merger, the Trust Company changed its name to Tompkins Community Bank. At June 30, 2022, the Company had one wholly-owned banking subsidiary, Tompkins Community Bank. The Company also has a wholly-owned insurance agency subsidiary, Tompkins Insurance Agencies, Inc. ("Tompkins Insurance"). The trust division of the Trust Company provides a full array of investment services, including investment management, trust and estate, financial and tax planning as well as life, disability and long-term care insurance services. The Company’s principal offices are located at 118 E. Seneca Street, Ithaca, NY, 14850, and its telephone number is (888) 503-5753. The Company’s common stock is traded on the NYSE American under the Symbol "TMP."

The Tompkins strategy centers around our core values and a commitment to delivering long-term value to our clients, communities, and shareholders. A key strategic initiative for the Company is a focus on responsible and sustainable growth, including initiatives to grow organically through our current businesses, as well as through possible acquisitions of financial institutions, branches, and financial services businesses. As such, the Company has acquired, and from time to time considers acquiring, banks, thrift institutions, branch offices of banks or thrift institutions, or other businesses that would complement the Company’s business or its geographic reach. The Company generally targets merger or acquisition partners that are culturally similar and have experienced management and possess either significant market presence or have potential for improved profitability through financial management, economies of scale and expanded services.

Business Segments

Banking services consist primarily of attracting deposits from the areas served by the Company’s one banking subsidiary’s 63 banking offices (43 offices in New York and 20 offices in Pennsylvania) and using those deposits to originate a variety of commercial loans, consumer loans, real estate loans (including commercial loans collateralized by real estate), and leases. The Company’s lending function is managed within the guidelines of a comprehensive Board-approved lending policy. Reporting systems are in place to provide management with ongoing information related to loan production, loan quality, concentrations of credit, loan delinquencies, and nonperforming and potential problem loans. Banking services also include a full suite of products such as debit cards, credit cards, remote deposit, electronic banking, mobile banking, cash management, and safe deposit services.

Wealth management services consist of investment management, trust and estate, financial and tax planning as well as life, disability and long-term care insurance services. Wealth management services are provided by Tompkins Community Bank under the trade name Tompkins Financial Advisors. Tompkins Financial Advisors offers services to customers of Tompkins Community Bank and shares offices in each of the banking markets.

Insurance services include property and casualty insurance, employee benefit consulting, and life, long-term care and disability insurance. Tompkins Insurance is headquartered in Batavia, New York. Over the years, Tompkins Insurance has acquired smaller insurance agencies in the market areas serviced by the Company’s banking subsidiaries and successfully consolidated them into Tompkins Insurance. Tompkins Insurance offers services to customers of Tompkins Community Bank and shares offices in each of the banking markets. In addition to these shared offices, Tompkins Insurance has five stand-alone offices in Western New York, and one stand-alone office in Tompkins County, New York.

The Company’s principal expenses are interest on deposits, interest on borrowings, and operating and general administrative expenses, as well as provisions for credit losses. Funding sources, other than deposits, include borrowings, securities sold under agreements to repurchase, and cash flow from lending and investing activities.

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Competition

Competition for commercial banking and other financial services is strong in the Company’s market areas. In one or more aspects of its business, the Company’s subsidiaries compete with other commercial banks, savings and loan associations, credit unions, finance companies, Internet-based financial services companies, mutual funds, insurance companies, brokerage and investment banking companies, and other financial intermediaries. Some of these competitors have substantially greater resources and lending capabilities and may offer services that the Company does not currently provide. In addition, many of the Company’s non-bank competitors are not subject to the same extensive Federal regulations that govern financial holding companies and Federally-insured banks.

Competition among financial institutions is based upon interest rates offered on deposit accounts, interest rates charged on loans and other credit and service charges, the quality and scope of the services rendered, the convenience of facilities and services, and, in the case of loans to commercial borrowers, relative lending limits. Management believes that a community-based financial organization is better positioned to establish personalized financial relationships with both commercial customers and individual households. The Company’s community commitment and involvement in its primary market areas, as well as its commitment to quality and personalized financial services, are factors that contribute to the Company’s competitiveness. Management believes that each of the Company’s subsidiary banks can compete successfully in its primary market areas by making prudent lending decisions quickly and more efficiently than its competitors, without compromising asset quality or profitability. In addition, the Company focuses on providing unparalleled customer service, which includes offering a strong suite of products and services, including products that are accessible to our customers through digital means. Although management feels that this business model has caused the Company to grow its customer base in recent years and allows it to compete effectively in the markets it serves, we cannot assure you that such factors will result in future success.

Regulation

Banking, insurance services and wealth management are highly regulated. As a financial holding company including a community bank, a registered investment adviser, and an insurance agency subsidiary, the Company and its subsidiaries are subject to examination and regulation by the Federal Reserve Board ("FRB"), Securities and Exchange Commission ("SEC"), the Federal Deposit Insurance Corporation ("FDIC"), the New York State Department of Financial Services, Pennsylvania Department of Banking and Securities, the Financial Industry Regulatory Authority, and the Pennsylvania Insurance Department.

OTHER IMPORTANT INFORMATION

The following discussion is intended to provide an understanding of the consolidated financial condition and results of operations of the Company for the three and six months ended June 30, 2022. It should be read in conjunction with the Company’s Audited Consolidated Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, and the Unaudited Consolidated Financial Statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q.

In this Report, there are comparisons of the Company’s performance to that of a peer group, which is comprised of the group of 146 domestic bank holding companies with $3 billion to $10 billion in total assets as defined in the Federal Reserve’s "Bank Holding Company Performance Report" for March 31, 2022 (the most recent report available). Although the peer group data is presented based upon financial information that is one fiscal quarter behind the financial information included in this report, the Company believes that it is relevant to include certain peer group information for comparison to current quarter numbers.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The statements contained in this Report that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements may be identified by use of such words as "may", "will", "estimate", "intend", "continue", "believe", "expect", "plan", or "anticipate", and other similar words. Examples of forward-looking statements may include statements regarding the asset quality of the Company's loan portfolios; the level of the Company's allowance for credit losses; whether, when and how borrowers will repay deferred amounts and resume scheduled payments; the sufficiency of liquidity sources; the Company's exposure to changes in interest rates, and to new, changed, or extended government/regulatory expectations; the impact of changes in accounting standards; and trends, plans, prospects, growth and strategies. Forward-looking statements are made based on management’s expectations and beliefs concerning future events impacting the Company and are subject to certain uncertainties and factors relating to the Company’s operations and economic environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those expressed and/or implied by forward-looking statements. The following factors, in addition to those listed as Risk Factors in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, are among those that could cause actual results to differ

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materially from the forward-looking statements: changes in general economic, market and regulatory conditions; GDP growth and inflation trends; the ongoing dynamic nature of the COVID-19 pandemic and its impact; the impact of the interest rate and inflationary environment on the Company' business, financial condition and results of operations; other income or cash flow anticipated from the Company's operations, investment and/or lending activities; changes in laws and regulations affecting banks, bank holding companies and/or financial holding companies, such as the Dodd-Frank Act and Basel III and the Economic Growth, Regulatory Relief, and Consumer Protection Act; the impact of any change in the FDIC insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; legislative and regulatory changes in response to COVID-19 with which we and our subsidiaries must comply, including the CARES Act and the Consolidated Appropriations Act, 2021, and the rules and regulations promulgated thereunder, and federal, state and local government mandates; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; governmental and public policy changes, including environmental regulation; reliance on large customers; uncertainties arising from national and global events, including the war in Ukraine, as well as the potential impact of widespread protests, civil unrest, and political uncertainty on the economy and the financial services industry; and financial resources in the amounts, at the times and on the terms required to support the Company’s future businesses.

Critical Accounting Policies

The accounting and reporting policies followed by the Company conform, in all material respects, to U.S. generally accepted accounting principles ("GAAP") and to general practices within the financial services industry. In the course of normal business activity, management must select and apply many accounting policies and methodologies and make estimates and assumptions that lead to the financial results presented in the Company’s consolidated financial statements and accompanying notes. There are uncertainties inherent in making these estimates and assumptions, which could materially affect the Company’s results of operations and financial position.

Management considers accounting estimates to be critical to reported financial results if (i) the accounting estimates require management to make assumptions about matters that are highly uncertain, and (ii) different estimates that management reasonably could have used for the accounting estimate in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, could have a material impact on the Company’s financial statements. Management considers the accounting policies relating to the allowance for credit losses ("allowance", or "ACL"), and the review of the securities portfolio for other-than-temporary impairment to be critical accounting policies because of the uncertainty and subjectivity involved in these policies and the material effect that estimates related to these areas can have on the Company’s results of operations.

For information on the Company's significant accounting policies and to gain a greater understanding of how the Company’s financial performance is reported, refer to Note 1 – "Summary of Significant Accounting Policies" in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Refer to "Recently Issued Accounting Standards" in Management's Discussion and Analysis in this Quarterly Report on Form 10-Q for a discussion of recent accounting updates.

Critical Accounting Estimates

The Company's significant accounting policies conform with U.S. generally accepted accounting principles ("GAAP") and are described in Note 1 of Notes to Financial Statements. In applying those accounting policies, management of the Company is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. Certain critical accounting estimates are more dependent on such judgment and in some cases may contribute to volatility in the Company's reported financial performance should the assumptions and estimates used change over time due to changes in circumstances. The more significant area in which management of the Company applies critical assumptions and estimates includes the following:

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•Accounting for credit losses - The Company accounts for the allowance for credit losses using the current expected credit loss model. Under this accounting guidance, the allowance for credit losses represents a valuation account that is deducted from the amortized cost basis of certain financial assets, including loans and leases, to present the net amount expected to be collected at the balance sheet date. A provision for credit losses is recorded to adjust the level of the allowance as deemed necessary by management. In estimating expected losses in the loan and lease portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. For certain loan pools that share similar risk characteristics, the Company utilizes statistically developed models to estimate amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers' abilities to repay obligations. Such models consider historical correlations of credit losses with various macroeconomic assumptions including unemployment and gross domestic product. These forecasts may be adjusted for inherent limitations or biases of the models. Subsequent to the forecast period, the Company utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans. Changes in the circumstances considered when determining management's estimates and assumptions could result in changes in those estimates and assumptions, which could result in adjustment of the allowance for credit losses in future periods. A discussion of facts and circumstances considered by management in determining the allowance for credit losses is included herein in Note 4 of Notes to Financial Statements.

COVID-19 Pandemic and Recent Events

The COVID-19 global pandemic continued to present health and economic challenges in the second quarter of 2022, but conditions were generally improved from 2021. The Company's hybrid work environment for most noncustomer facing employees is in place and travel restrictions eliminated. On March 17, 2022, the NY State Department of Labor announced that the department ended the designation of COVID-19 as an airborne infectious disease that presents a serious risk of harm to public health under the HERO Act and our protocols have been updated accordingly.

The Company's payment deferral program that was implemented in 2020 to provide assistance to its customers that were experiencing financial hardship due to the COVID-19 pandemic has been reduced as customers return to repayment status. As of June 30, 2022, total loans that continued in a deferral status amounted to approximately $1.8 million, representing 0.04% of total loans, and of those loans approximately 4.1% were past due. In accordance with the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") and the interagency guidance, the Company elected to adopt the provisions to not report qualified loan modifications as troubled debt restructurings ("TDRs"). The relief related to TDRs under the CARES Act was extended by the Consolidated Appropriations Act, 2021. Under the Consolidated Appropriations Act, relief under the CARES Act was extended until the earlier of (i) 60 days after the date the COVID-19 national emergency comes to an end or (ii) January 1, 2022. Management continues to monitor credit conditions carefully at the individual borrower level, as well as by industry segment, in order to be responsive to changing credit conditions.

The Company funded a total of 5,140 applications for Paycheck Protection Plan ("PPP") loans totaling $694.1 million in 2020 and 2021. Out of the $694.1 million of PPP loans that the Company funded, approximately $690.8 million have been forgiven by the SBA under the terms of the program as of June 30, 2022, or paid back by the borrower. As of June 30, 2022, there were twenty outstanding PPP loans totaling approximately $3.3 million. Total net deferred fees on the remaining balance of PPP loans amounted to $106,000 at June 30, 2022.

RESULTS OF OPERATION

Performance Summary

Net income for the second quarter of 2022 was $20.9 million or $1.45 diluted earnings per share, compared to $22.8 million or $1.54 diluted earnings per share for the same period in 2021. Net income for the first six months of 2022 was $44.1 million or $3.05 diluted earnings per share compared to $48.5 million or $3.26 diluted earnings per share for the first six months of 2021. Net income for the second quarter of 2022 was down $2.0 million or 8.6% when compared to the same quarter in 2021. For the year to date period ending June 30, 2022, net income decreased by $4.3 million or 8.9%. The decrease in net income for both the three and six month periods in 2022 compared to the same periods in 2021 was mainly a result of the recording of a provision expense as well as increases in noninterest expense.

Return on average assets ("ROA") for the quarter ended June 30, 2022 was 1.07%, compared to 1.15% for the quarter ended June 30, 2021. Return on average shareholders’ equity ("ROE") for the second quarter of 2022 was 13.09%, compared to 12.70% for the same period in 2021. For the year-to-date period ended June 30, 2022, ROA and ROE totaled 1.13% and 13.17%, respectively, compared to 1.24% and 13.55%, for the same period in 2021.

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Segment Reporting

The Company operates in the following three business segments, banking, insurance, and wealth management. Insurance is comprised of property and casualty insurance services and employee benefit consulting operated under the Tompkins Insurance Agencies, Inc. subsidiary. Wealth management activities include the results of the Company’s trust, financial planning, and wealth management services, organized under the Tompkins Financial Advisors brand. All other activities are considered banking.

Banking Segment

The banking segment reported net income of $18.8 million for the second quarter of 2022, a decrease of $1.9 million or 9.1% from net income of $20.7 million for the same period in 2021. For the six months ended June 30, 2022, the banking segment reported net income of $38.8 million, a decrease of $4.2 million or 9.9% from the same period in 2021. The year-to-date decrease in net income was mainly due to a $5.2 million increase in provision expense over prior year, partially offset by increased net interest income.

Net interest income of $58.3 million for the second quarter of 2022 was up $3.4 million or 6.2% from the same period in 2021. For the six months ended June 30, 2022, net interest income of $114.9 million was up $5.0 million or 4.5% compared to the first six months of 2021, with the improvement largely driven by lower funding costs and higher yields on earning assets. Net interest income for the three and six months ended June 30, 2022 included net deferred loan fees associated with PPP loans of $873,000 and $2.9 million, respectively, compared to net deferred loan fees of $1.9 million and $4.7 million for the three and six months ended June 30, 2021, respectively.

The provision for credit losses was an expense of $856,000 for the three months ended June 30, 2022, compared to a credit of $3.1 million for the same period in 2021. For the six month period ended June 30, 2022, the provision for credit losses was an expense of $336,000 compared to a credit of $4.9 million for the same period in 2021. The increase in provision for credit losses for both the three and six month periods is mainly driven by current economic forecasts coupled with loan growth. For additional information, see the section titled "The Allowance for Credit Losses" below.

Noninterest income of $6.3 million for the three months ended June 30, 2022 was down $118,000 or 1.8% compared to the same period in 2021. The decrease was mainly driven by reduced income on bank owned life insurance and lower gains on sales of residential loans, which were down $399,000 and $100,000, respectively, from the same quarter in 2021. Service charges on deposit accounts were up $285,000 in the second quarter of 2022 over the second quarter of 2021. For the six months ended June 30, 2022, noninterest income of $12.5 million was down $237,000 or 1.9% compared to the six months ended June 30, 2021. The decrease was mainly driven by the reduced income on bank owned life insurance and lower gains on sales of residential loans, which were down $518,000 and $525,000, respectively, from the same period in 2021. These were partially offset by growth in service charges on deposit accounts and card services income, which were up $594,000 and $168,000, respectively, in 2022 over 2021.

Noninterest expense of $39.4 million and $76.6 million for the three and six months ended June 30, 2022, respectively, was up $1.5 million or 4.0% and $3.4 million or 4.6%, respectively, over the same periods in 2021. Included in the quarter and year-to-date periods of 2022 were one-time expenses of $956,000 and $1.2 million, respectively, related to the consolidation of the Company's four banking charters into one charter, including the related conversion of the core banking system, which was completed in May of this year. The other drivers were marketing expenses being up $324,000 and $886,000, and cardholder expenses being up $405,000 and $760,000, for the three and six months ended respectively.

Insurance Segment

The insurance segment reported net income of $1.3 million for the three months ended June 30, 2022, which was up $264,000 or 26.3% compared to the second quarter of 2021. Total noninterest revenue was up $410,000 or 5.0% for the second quarter of 2022 compared to the same quarter in the prior year, primarily due to growth in both commercial and personal lines property and casualty commissions. The growth in property and casualty commission revenue is attributed to new business, growth within the existing client base, and premium increases related to change in general market conditions.

For the six months ended June 30, 2022, net income was up $202,000 or 6.3% compared to the same period in the prior year. Total revenue was up $426,000 or 2.4% compared to the same period in the prior year. The increase in revenues and net income for the six months ended June 30, 2022 compared to the prior year is mainly due to growth in overall commission revenue of $652,000 or 4.3%, primarily in commercial and personal lines, which were up 6.4% and 5.3% respectively.

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Noninterest expenses for the three months ended June 30, 2022 were up $51,000 or 0.8% compared to the three months ended June 30, 2021. Year-to-date noninterest expenses were up $117,000 or 0.9% compared to the six months ended June 30, 2021. The increases in noninterest expenses for the three and six months ended June 30, 2022 were mainly the result of increases in wages and new business commissions along with related tax and benefit expenses tied to the increase in commission revenue.

Wealth Management Segment

The wealth management segment reported net income of $759,000 for the three months ended June 30, 2022, which was down $345,000 or 31.3% compared to the second quarter of 2021. The lower net income was a result of lower revenues and increased expenses. Revenue for the second quarter of 2022 was down $210,000 or 4.4% compared to the second quarter of 2021. The decrease for the three months ended June 30, 2022 was mainly in advisory revenues related to a decrease in assets under management, largely a result of market conditions. Total expense for the second quarter of 2022 was up $106,000 or 3.1% compared to the second quarter of 2021. The increase in expense was mainly attributable to technology costs, mainly related to implementation of a new core platform. For the six months ended June 30, 2022, net income of $2.0 million was down $272,000 or 12.1% compared to the prior year, mainly due to an increase in expenses mentioned above. Revenues for the six months ended June 30, 2022, were down $59,000 or 0.6% from the same period in 2021.

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Net Interest Income

The following tables show average interest-earning assets and interest-bearing liabilities, and the corresponding yield or cost associated with each for the three and six month periods ended June 30, 2022 and 2021:

Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Quarter Ended						Quarter Ended
	June 30, 2022						June 30, 2021
	Average						Average
	Balance				Average		Balance				Average
(Dollar amounts in thousands)	(QTD)		Interest		Yield/Rate		(QTD)		Interest		Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks	$	88,094	$	64	0.29	%	$	216,679	$	45	0.08	%
Securities (1)
U.S. Government securities	2,305,102		7,746		1.35	%	1,987,541		5,338		1.08	%
State and municipal (2)	97,481		619		2.55	%	114,221		727		2.55	%
Other securities (2)	3,337		28		3.40	%	3,418		23		2.70	%
Total securities	2,405,920		8,393		1.40	%	2,105,180		6,088		1.16	%
FHLBNY and FRB stock	12,234		120		3.92	%	17,285		199		4.62	%
Total loans and leases, net of unearned income (2)(3)	5,115,340		52,733		4.14	%	5,270,648		53,909		4.10	%
Total interest-earning assets	7,621,588		61,310		3.23	%	7,609,792		60,241		3.18	%
Other assets	209,057						340,154
Total assets	$	7,830,645					$	7,949,946
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	4,073,279		890		0.09	%	3,966,472		943		0.10	%
Time deposits	603,791		1,157		0.77	%	726,258		1,859		1.03	%
Total interest-bearing deposits	4,677,070		2,047		0.18	%	4,692,730		2,802		0.24	%
Federal funds purchased & securities sold under agreements to repurchase	54,885		15		0.11	%	52,099		15		0.11	%
Other borrowings	169,390		629		1.49	%	272,993		1,351		1.98	%
Trust preferred debentures	0		0		0.00	%	12,978		821		25.39	%
Total interest-bearing liabilities	4,901,345		2,691		0.22	%	5,030,800		4,989		0.40	%
Noninterest bearing deposits	2,189,132						2,082,149
Accrued expenses and other liabilities	100,813						115,661
Total liabilities	7,191,290						7,228,610
Tompkins Financial Corporation Shareholders’ equity	637,896						719,880
Noncontrolling interest	1,459						1,456
Total equity	639,355						721,336
Total liabilities and equity	$	7,830,645					$	7,949,946
Interest rate spread					3.01	%					2.78	%
Net interest income/margin on earning assets			58,619		3.09	%			55,252		2.91	%
Tax Equivalent Adjustment			(357)						(406)
Net interest income per consolidated financial statements			$	58,262					$	54,846

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Average Consolidated Statements of Condition and Net Interest Analysis (Unaudited)
	Year to Date Period Ended						Year to Date Period Ended
	June 30, 2022						June 30, 2021
	Average						Average
	Balance				Average		Balance				Average
(Dollar amounts in thousands)	(YTD)		Interest		Yield/Rate		(YTD)		Interest		Yield/Rate
ASSETS
Interest-earning assets
Interest-bearing balances due from banks	$	110,984	$	105	0.19	%	$	312,130	$	130	0.08	%
Securities (1)
U.S. Government securities	2,299,389		15,108		1.32	%	1,812,315		9,950		1.11	%
State and municipal (2)	99,602		1,267		2.57	%	117,571		1,502		2.58	%
Other securities (2)	3,363		51		3.06	%	3,422		46		2.72	%
Total securities	2,402,354		16,426		1.38	%	1,933,308		11,498		1.20	%
FHLBNY and FRB stock	11,172		225		4.06	%	16,836		412		4.93	%
Total loans and leases, net of unearned income (2)(3)	5,085,808		104,088		4.13	%	5,280,914		108,365		4.14	%
Total interest-earning assets	7,610,318		120,844		3.20	%	7,543,188		120,405		3.22	%
Other assets	259,809						345,461
Total assets	$	7,870,127					$	7,888,649
LIABILITIES & EQUITY
Deposits
Interest-bearing deposits
Interest bearing checking, savings, & money market	4,116,870		1,638		0.08	%	3,957,936		2,036		0.10	%
Time deposits	617,616		2,455		0.80	%	737,729		3,917		1.07	%
Total interest-bearing deposits	4,734,486		4,093		0.17	%	4,695,665		5,953		0.26	%
Federal funds purchased & securities sold under agreements to repurchase	59,536		31		0.11	%	55,821		31		0.11	%
Other borrowings	147,466		1,129		1.54	%	269,019		2,727		2.04	%
Trust preferred debentures	0		0		0.00	%	13,105		996		15.33	%
Total interest-bearing liabilities	4,941,488		5,253		0.21	%	5,033,610		9,707		0.39	%
Noninterest bearing deposits	2,149,201						2,016,262
Accrued expenses and other liabilities	103,451						117,749
Total liabilities	7,194,140						7,167,621
Tompkins Financial Corporation Shareholders’ equity	674,545						719,586
Noncontrolling interest	1,442						1,442
Total equity	675,987						721,028
Total liabilities and equity	$	7,870,127					$	7,888,649
Interest rate spread					2.99	%					2.83	%
Net interest income/margin on earning assets			115,591		3.06	%			110,698		2.96	%
Tax Equivalent Adjustment			(715)						(815)
Net interest income per consolidated financial statements			$	114,876					$	109,883

1 Average balances and yields on available-for-sale debt securities are based on historical amortized cost.

2 Interest income includes the tax effects of taxable-equivalent adjustments using an effective income tax rate of 21% in 2022 and 2021 to increase tax exempt interest income to taxable-equivalent basis.

3 Nonaccrual loans are included in the average asset totals presented above. Payments received on nonaccrual loans have been recognized as disclosed in Note 1 of the Company’s consolidated financial statements included in Part 1 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Net Interest Income 

Net interest income is the Company’s largest source of revenue, representing 75.5% and 74.7%, respectively, of total revenues for the three and six months ended June 30, 2022, compared to 74.4% and 73.9% for the same periods in 2021. Net interest income is dependent on the volume and composition of interest earning assets and interest-bearing liabilities and the level of market interest rates. The above table shows average interest-earning assets and interest-bearing liabilities, and the corresponding yield or cost associated with each.

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Taxable-equivalent net interest income for the three months ended June 30, 2022 increased $3.4 million or 6.1% from the same period in the prior year. The increase resulted mainly from an 18 basis point decrease in the average rate paid on interest bearing liabilities and a 5 basis point increase in the average yield on interest earning assets. Taxable-equivalent net interest income for the six month period ended June 30, 2022 increased $4.9 million or 4.4% from the six month period ended June 30, 2021. Net interest income in the first six months of 2022 benefited from the growth in average securities balances and average yields on securities, which were up 24.3% and 18 basis points over the same six month period in 2021, and an 18 basis point decrease in the average rate paid on interest bearing liabilities.

Net interest margin for the three months ended June 30, 2022 was 3.09% compared to 2.91% in 2021. Net interest margin for the six months ended June 30, 2022 was 3.06% compared to 2.96% for the same period in 2021. The increase in net interest margin for the three and six months ended June 30, 2022 compared to the same periods in 2021 was mainly due to an increase in higher yielding securities along with lower average funding costs.

Taxable-equivalent interest income for the three and six months ended June 30, 2022, was $61.3 million and $120.8 million, up 1.8% and 0.4%, respectively, compared to the same periods in 2021. The growth in the three month period reflects higher average asset yields and growth in average earning assets, while the year-to-date growth reflects growth in average earning assets. Average asset yields for the three months ended June 30, 2022 were up 5 basis points compared to the same period in 2021 driven by growth in higher yielding securities as excess liquidity was invested in securities and loans. For the three months ended June 30, 2022, the average yield on securities was up 24 basis points and the average yield on loans was up 4 basis points over the same period in 2021. Yields in 2022 also benefited from increases in market interest rates. Average asset yields for the six months ended June 30, 2022 were down 2 basis points compared to the same period in 2021, resulting from a 1 basis point decrease in the average yield on loans, partially offset by an 18 basis point increase in the average yield on securities. As a result of its participation in the SBA's PPP, the Company recorded net deferred loan fees of $873,000 and $2.9 million, respectively, in the three and six months ended June 30, 2022, compared to $1.9 million and $4.7 million, respectively, for the three and six months ended June 30, 2021. These net deferred loan fees are included in interest income.

For the three and six months ended June 30, 2022, average earning assets were up $11.8 million or 0.2% and $67.1 million or 0.9%, respectively, over the same periods in 2021 with the majority of growth in securities. Average loan balances for the three months ended June 30, 2022, were down $155.3 million or 3.0% from the three months ended June 30, 2021. Average balances for the six months ended June 30, 2022 were down $195.1 million or 3.7% from the six months ended June 30, 2021. The decrease in average loans was primarily due to a decline in average PPP loans. Average securities balances for the three and six months ended June 30, 2022, were up $300.7 million or 14.3% and $469.0 million or 24.3%, respectively. Average interest bearing balances for the three and six months ended June 30, 2022, were down $128.6 million and $201.1 million, respectively, over the same periods in 2021.

Interest expense for the three and six months ended June 30, 2022, decreased by $2.3 million or 46.1% and $4.5 million or 45.9%, respectively, compared to the same periods in 2021. The average cost of interest-bearing deposits during the three and six months ended June 30, 2022 was 0.18% and 0.17%, respectively, down 6 basis points and 8 basis points, respectively, compared to the same periods in 2021. Average interest-bearing deposits were down $15.7 million or 0.3% but were up $38.8 million or 0.8%, respectively, for the same three and six months ended 2021. Average noninterest bearing deposits were up $107.0 million or 5.14% for the three months ended June 30, 2022 when compared to the second quarter of 2021, and for the six months ended June 30, 2022 were up $133.0 million or 6.6% compared to the same period in 2021. Average other borrowings for the three and six months ended June 30, 2022 were down $103.6 million or 38.0% and $121.6 million or 45.2%, respectively, compared to the same periods in 2021, mainly due to decreases in term borrowings with the FHLB.

Provision for Credit Losses 

The provision for credit losses represents management’s estimate of the amount necessary to maintain the allowance for credit losses ("ACL") at an appropriate level. Provision for credit losses in the second quarter of 2022 was $856,000 compared to a credit of $3.1 million for the second quarter of 2021. Provision for credit losses for the six months ended June 30, 2022 was $336,000 compared to a credit of $4.9 million for the same period in 2021. The provision for credit losses for the three and six months ended June 30, 2022 included a provision expense of $76,000 and $290,000, respectively, related to off-balance sheet credit exposures compared to a credit to provision of $353,000 and a provision expense of $327,000, respectively, for the same periods in 2021. The increase in provision for credit losses for both the three and six month periods is mainly driven by current economic forecasts coupled with loan growth. The section captioned "Financial Condition – The Allowance for Credit Losses" below has further details on the allowance for credit losses and asset quality metrics.

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Noninterest Income 

Noninterest income was $18.9 million for the second quarter of 2022, which was in line compared to the second quarter of 2021, and was $38.9 million for the first six months of 2022, which was also in line with the same period prior year. Noninterest income represented 24.5% of total revenue for the second quarter of 2022 and 25.3% for the six months ended June 30, 2022, compared to 25.6% and 26.1%, respectively, for the same periods in 2021.

Insurance commissions and fees, the largest component of noninterest income, were $8.4 million for the second quarter of 2022, an increase of 4.7% from the same period prior year. The increase in insurance commissions and fees in the second quarter of 2022 over the same period in 2021 was mainly commercial lines and personal lines property and casualty commissions which grew by 9% and 6%, respectively. For the first six months of 2022, insurance commissions and fees were up $526,000 or 3.1% compared to the same period in 2021. The increase in revenues for the six months ended June 30, 2022, compared to the prior year was primarily due to growth in commercial lines and personal lines revenue attributable to increased new business, growth within the existing client base, and premium increases related to changes in general market conditions and exposures for certain business sectors.

Investment services income of $4.6 million in the second quarter of 2022 was down $121,000 or 2.6% compared to the second quarter of 2021. For the first six months of 2022, investment services income was up $123,000 or 1.3% compared to the same period in 2021. Investment services income includes trust services, financial planning, wealth management services, and brokerage related services. The fair value of assets managed by, or in custody of, Tompkins was $2.8 billion at June 30, 2022. The fair value of assets managed by, or in custody of, Tompkins was $5.0 billion at June 30, 2021, which included $1.5 billion of Company-owned securities where Tompkins is custodian. The decline in assets from prior year resulted in part from the outsourcing of the management of the Tompkins Retirement Account ($95.0 million) and custody of Company-owned securities where Tompkins was custodian ($1.5 billion); however, as these were inter-company related items, these have had little to no impact to total income, overall.

Service charges on deposit accounts were $1.8 million and $3.5 million for the three and six months ended June 30, 2022, up $285,000 or 19.4% and $594,000 or 20.2%, respectively, over the same periods in 2021. The increase was in net overdraft fees and service fees on personal and business accounts, reflective of increased transaction activity.

Card services income in the second quarter of 2022 was in line with the same three month period end of 2021, while the six months ended June 30, 2022, was up $168,000 or 3.2% compared to the same period in 2021. Debit card income, the largest component of card services income, was in line with both the three and six month period ended June 30, 2021. Interchange income related to credit card services was up $67,000 and $130,000, respectively, compared to the same three and six month periods in 2021.

Other income of $1.2 million in the second quarter of 2022 was down $424,000 or 25.5% compared to the same period in 2021. For the first six months of 2022, other income of $2.7 million was down $922,000 or 25.3% compared to the same period in 2021. The decrease for the three and six months ended June 30, 2022 compared to the same periods in 2021, was mainly due to lower earnings on bank owned life insurance and lower gains on sales of residential loans. Earnings on bank owned life insurance were down $399,000 and $562,000, respectively, and gains on sales of residential loans were down $100,000 and $525,000, respectively, for the three and six months ended June 30, 2022, compared to the same periods in the prior year.

Noninterest Expense 

Noninterest expense of $49.1 million for the second quarter of 2022 and $96.0 million for the first six months of 2022, was up 3.5% and 4.4%, respectively, compared to the same periods in 2021.

Expenses associated with compensation and benefits comprise the largest component of noninterest expense, representing 62.6% and 62.3% of total noninterest expense for the three and six months ended June 30, 2022. Salaries and wages expense for the three and six months ended June 30, 2022 increased by $404,000 or 1.7%, and $1.0 million or 2.2%, respectively, compared to the same periods in 2021. The increases were mainly due to normal merit adjustments. Employee benefits for the three months ended June 30, 2022 decreased by $285,000 or 4.3%, from the same three month period end in 2021, mainly as a result of lower health care expense. Employee benefits for the six months ended June 30, 2022, was in line with the same six month period end in 2021.

Other expense categories, not related to compensation and benefits, for the three and six months ended June 30, 2022 were up $1.6 million or 9.3% and $3.0 million or 8.9%, respectively. For the three and six months ended June 30, 2022, compared to the same periods in 2021, marketing expenses were up $324,000 or 28.6% and $886,000 or 54.4%, respectively, cardholder expense was up $405,000 or 46.3% and $760,000 or 45.7%, respectively, printing and supplies were up $210,000 or 238.5% and $277,000 or 160.4%, respectively, and technology expense was up $713,000 or 23.9% and $1.5 million or 24.9%,

54

respectively. Contributing to the growth in these expenses for the three months ended and year-to-date periods ended June 30, 2022, were one-time expenses of $956,000 and $1.2 million, respectively, related to the consolidation of the Company's four banking charters into one charter, including the related conversion of the core banking system, which was completed in May of this year.

Income Tax Expense 

The provision for income taxes was $6.3 million for an effective rate of 23.2% for the second quarter of 2022, compared to tax expense of $6.5 million and an effective rate of 22.1% for the same quarter in 2021. For the first six months of 2022, the provision for income taxes was $13.3 million for an effective rate of 23.1% compared to tax expense of $13.2 million and an effective rate of 21.3% for the same period in 2021. The effective rates differ from the U.S. and state statutory rates primarily due to the effect of tax-exempt income from loans, securities and life insurance assets, and the income tax effects associated with stock based compensation. The increase in the effective tax rate for the three and six months ended June 30, 2022, over the same period in 2021, is largely due to the anticipated loss of certain New York State tax benefits due to the expectation that average assets will exceed $8.0 billion for the 2022 tax year.

The Company's banking subsidiary has an investment in a real estate investment trust that provides certain benefits on its New York State tax return for qualifying entities. A condition to claim the benefit is that the consolidated company has average assets of no more than $8.0 billion for the taxable year. The Company expects average assets to exceed the $8.0 billion threshold for the 2022 tax year. As of June 30, 2022, the Company's consolidated average assets, as defined by New York tax law, were slightly under the $8.0 billion threshold. The Company will continue to monitor the consolidated average assets during 2022 to determine future eligibility.

FINANCIAL CONDITION

Total assets were $7.8 billion at June 30, 2022, up $22.5 million or 0.3% from December 31, 2021. The increase in total assets over year-end 2021 was mainly due to loan growth, which increased $87.0 million or 1.7% compared to December 31, 2021. Total securities were $2.2 billion at June 30, 2022, down $124.6 million or 5.4% compared to the $2.3 billion reported at year-end 2021. The decrease was the result of an increase in unrealized losses on the available-for-sale portfolio from $19.3 million at year-end 2021 to $183.3 million at June 30, 2022, as a result of the increase in market interest rates in 2022. Total cash and cash equivalents were down $17.3 million or 27.4% compared to December 31, 2021. Total deposits at June 30, 2022 were down $21.9 million or 0.3% from December 31, 2021. Other borrowings at June 30, 2022 increased $171.6 million or 138.4% from December 31, 2021, as loan growth outpaced deposit growth.

Securities

As of June 30, 2022, the Company’s securities portfolio was $2.2 billion or 28.1% of total assets, compared to $2.3 billion or 29.8% of total assets at year end 2021. The following table details the composition of the securities portfolio:

Available-for-Sale Debt Securities
	June 30, 2022				December 31, 2021
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Treasuries	$	191,051	$	174,102	$	160,291	$	157,834
Obligations of U.S. Government sponsored entities	863,235		793,493		843,218		832,373
Obligations of U.S. states and political subdivisions	95,661		88,078		102,177		104,169
Mortgage-backed securities - residential, issued by
U.S. Government agencies	63,185		59,114		76,502		77,157
U.S. Government sponsored entities	859,388		774,571		879,102		870,556
U.S. corporate debt securities	2,500		2,360		2,500		2,424
Total available-for-sale debt securities	$	2,075,020	$	1,891,718	$	2,063,790	$	2,044,513

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Held-to-Maturity Debt Securities
	June 30, 2022				December 31, 2021
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Treasuries	$	86,582	$	77,345	$	86,689	$	86,368
Obligations of U.S. Government sponsored entities	225,733		197,315		197,320		195,920
Total held-to-maturity debt securities	$	312,315	$	274,660	$	284,009	$	282,288

As of June 30, 2022, the available-for-sale debt securities portfolio had net unrealized losses of $183.3 million compared to net unrealized losses of $19.3 million at December 31, 2021. The increase in unrealized losses related to the available-for-sale debt securities portfolio, which reflects the amount that the amortized cost exceeds fair value, was due primarily to increases in market interest rates during the first six months of 2022. Management’s policy is to purchase investment grade securities that on average have relatively short duration, which helps mitigate interest rate risk and provides sources of liquidity without significant risk to capital.

The Company evaluates available-for-sale and held-to-maturity debt securities in an unrealized loss position to determine whether the decline in the fair value below the amortized cost basis (impairment) is the result of changes in interest rates or reflects a fundamental change in the credit worthiness of the underlying issuer. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses ("ACL") on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to net income may be reversed if conditions change.

The Company determined that at June 30, 2022, all impaired available-for-sale and held-to-maturity debt securities were primarily attributable to changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit worthiness of the underlying issuers. The Company does not have the intent to sell these securities and does not believe it is more likely than not that the Company will be required to sell these securities before a recovery of amortized cost. Therefore, the Company carried no ACL at June 30, 2022 and there was no credit loss expense recognized by the Company with respect to the securities portfolio during the three and six months ended June 30, 2022.

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Loans and Leases
Loans and leases as of the end of the second quarter and prior year-end period were as follows:
(In thousands)	06/30/2022		12/31/2021
Commercial and industrial
Agriculture	$	69,291	$	99,172
Commercial and industrial other	717,837		699,121
PPP loans	3,499		71,260
Subtotal commercial and industrial	790,627		869,553
Commercial real estate
Construction	208,695		178,582
Agriculture	200,089		195,973
Commercial real estate other	2,361,790		2,278,599
Subtotal commercial real estate	2,770,574		2,653,154
Residential real estate
Home equity	181,672		182,671
Mortgages	1,341,663		1,290,911
Subtotal residential real estate	1,523,335		1,473,582
Consumer and other
Indirect	3,196		4,655
Consumer and other	65,033		67,396
Subtotal consumer and other	68,229		72,051
Leases	14,019		13,948
Total loans and leases	5,166,784		5,082,288
Less: unearned income and deferred costs and fees	(4,281)		(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	$	5,162,503	$	5,075,467

Total loans and leases of $5.2 billion at June 30, 2022 were up $87.0 million or 1.7% from December 31, 2021, mainly in the commercial real estate and residential real estate portfolios, and partially offset by the decline in PPP loan balances. PPP loans decreased $67.8 million from $71.3 million at year-end 2021, to $3.5 million at June 30, 2022. Excluding PPP loans, total loans at June 30, 2022 were up $154.8 million or 3.1% from December 31, 2021. As of June 30, 2022, total loans and leases represented 65.8% of total assets compared to 64.9% of total assets at December 31, 2021.

Residential real estate loans, including home equity loans, were $1.5 billion at June 30, 2022, up $49.8 million or 3.4% compared to December 31, 2021, and comprised 29.5% of total loans and leases at June 30, 2022. Changes in residential loan balances reflect the Company’s decision to retain these loans or sell them in the secondary market due to interest rate considerations. The Company’s Asset/Liability Committee meets regularly and establishes standards for selling and retaining residential real estate mortgage originations.

The Company may sell residential real estate loans in the secondary market based on interest rate considerations. These residential real estate loans are generally sold to Federal Home Loan Mortgage Corporation ("FHLMC") or State of New York Mortgage Agency ("SONYMA") without recourse in accordance with standard secondary market loan sale agreements. These residential real estate loans also are subject to customary representations and warranties made by the Company, including representations and warranties related to gross incompetence and fraud. The Company has not had to repurchase any loans as a result of these representations and warranties.

During the first six months of 2022 and 2021, the Company sold residential loans totaling $305,000 and $16.8 million, respectively, recognizing gains of $57,000 and $582,000, respectively. These residential real estate loans were sold without recourse in accordance with standard secondary market loan sale agreements. When residential mortgage loans are sold, the Company typically retains all servicing rights, which provides the Company with a source of fee income. Mortgage servicing rights totaled $1.0 million at June 30, 2022 and $1.0 million at December 31, 2021. 

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Commercial real estate loans and commercial and industrial loans totaled $2.8 billion and $790.6 million, respectively, and represented 53.7% and 15.3%, respectively, of total loans and leases as of June 30, 2022. The commercial real estate portfolio was up $117.4 million or 4.4% over year-end 2021, while commercial and industrial loans were down $78.9 million or 9.1%. The decrease in commercial and industrial loans over year-end 2021 was mainly in PPP loans, which were down $67.8 million or 95.1% to $3.5 million at June 30, 2022.

As of June 30, 2022, agriculturally-related loans totaled $269.4 million or 5.2% of total loans and leases, compared to $295.1 million or 5.8% of total loans and leases at December 31, 2021. Agriculturally-related loans include loans to dairy farms and crop farms. Agricultural-related loans are primarily made based on identified cash flows of the borrower with consideration given to underlying collateral, personal guarantees, and government related guarantees. Agriculturally-related loans are generally secured by the assets or property being financed or other business assets such as accounts receivable, livestock, equipment or commodities/crops.

The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures. Management reviews these policies and procedures on a regular basis. The Company discussed its lending policies and underwriting guidelines for its various lending portfolios in Note 4 – "Loans and Leases" in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. There have been no significant changes in these policies and guidelines since the date of that report. The Company’s Board of Directors approves the lending policies at least annually. The Company recognizes that exceptions to policy guidelines may occasionally occur and has established procedures for approving exceptions to these policy guidelines. Management has also implemented reporting systems to monitor loan originations, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans. 

The Company’s loan and lease customers are located primarily in the New York and Pennsylvania communities served by its subsidiary bank. Although operating in numerous communities in New York State and Pennsylvania, the Company is still dependent on the general economic conditions of these states and the local economic conditions of the communities within those states in which the Company does business.

The Allowance for Credit Losses

The below table represents the allowance for credit losses as of June 30, 2022 and December 31, 2021. The table provides, as of the dates indicated, an allocation of the allowance for credit losses for inherent loan losses by type. The allocation is neither indicative of the specific amounts or the loan categories in which future charge-offs may occur, nor is it an indicator of future loss trends. The allocation of the allowance for credit losses to each category does not restrict the use of the allowance to absorb losses in any category.

(In thousands)	6/30/2022		12/31/2021
Allowance for credit losses
Commercial and industrial	$	7,814	$	6,335
Commercial real estate	23,227		24,813
Residential real estate	11,082		10,139
Consumer and other	1,591		1,492
Finance leases	79		64
Total	$	43,793	$	42,843

As of June 30, 2022, the total allowance for credit losses was $43.8 million, up $950,000 or 2.2% compared to December 31, 2021. The ACL as a percentage of total loans measured 0.85% at June 30, 2022, compared to 0.84% at December 31, 2021.

The increase in the ACL from year-end 2021 reflects updated gross domestic product ("GDP") forecasts coupled with loan growth, mainly in the real estate portfolios. Forecasts related to GDP have slowed and are more in line with historical levels. Qualitative reserves established as a result of the COVID-19 pandemic to address specific portfolios with increased risk characteristics, including loans in our hotel portfolio, and loans in our deferral program, continue to move lower as a result of improved conditions in the hotel industry and payment performance of loans coming out of the deferral program. Although we have seen improved occupancy rates in the hospitality industry in recent months, we continue to closely monitor this industry.

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Asset quality measures at June 30, 2022 were generally favorable compared with December 31, 2021. Loans internally-classified Special Mention or Substandard were down $22.6 million or 16.4% compared to December 31, 2021. Nonperforming loans and leases were down $1.6 million or 5.1% from year end 2021 and represented 0.57% of total loans at June 30, 2022 compared to 0.61% at December 31, 2021. The allowance for credit losses covered 147.95% of nonperforming loans and leases as of June 30, 2022, compared to 137.51% at December 31, 2021.

Activity in the Company’s allowance for credit losses during the six months of 2022 and 2021 is illustrated in the table below:

Analysis of the Allowance for Credit Losses
(In thousands)	6/30/2022			6/30/2021
Average loans outstanding during period	$	5,085,808		$	5,280,914
Allowance at beginning of year, prior to adoption of ASU 2016-13	42,843			51,669
LOANS CHARGED-OFF:
Commercial and industrial	23			118
Commercial real estate	50			0
Residential real estate	51			46
Consumer and other	278			152
Finance leases	0			0
Total loans charged-off	$	402		$	316
RECOVERIES OF LOANS PREVIOUSLY CHARGED-OFF:
Commercial and industrial	26			101
Commercial real estate	805			1,039
Residential real estate	307			158
Consumer and other	168			82
Finance Leases	0			0
Total loans recovered	$	1,306		$	1,380
Net loans recovered	(904)			(1,064)
Provision (credit) for credit losses related to loans	46			(5,228)
Balance of allowance at end of period	$	43,793		$	47,505
Allowance for credit losses as a percentage of total loans and leases	0.85		%	0.92		%
Annualized net (recoveries) charge-offs on loans to average total loans and leases during the period	(0.04)		%	(0.04)		%

The provision for credit losses for loans was $780,000 for the three months ended June 30, 2022, compared to a credit of $2.7 million for the same period in 2021. For the six month period ended June 30, 2022, the provision for credit losses was $46,000 compared to credit of $5.2 million for the same period in 2021. The provision expense for credit losses for loans is based upon the Company's quarterly evaluation of the appropriateness of the allowance for credit losses. As discussed above, the ACL model estimated higher reserves at June 30, 2022 due to lower GDP forecasts coupled with loan growth. Net loan and lease recoveries for the six months ended June 30, 2022 were $904,000 compared to net recoveries of $1.1 million for the same period in 2021.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, and commercial letters of credit. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancellable, through a charge to credit loss expense for off-balance sheet credit exposures included in provision for credit loss expense in the Company's consolidated statements of income.

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For the three months ended June 30, 2022, the provision for credit losses for off-balance sheet credit exposures was $76,000 compared to a credit of $353,000 for the same period in 2021. For the six month period ended June 30, 2022, the provision for credit losses for off-balance sheet credit exposures was $290,000 compared to $327,000 for the same six month period in 2021. The provision in 2022 was driven by an increase in off-balance sheet exposures, specifically commercial real estate loan commitments.

Analysis of Past Due and Nonperforming Loans
(In thousands)	6/30/2022			12/31/2021			6/30/2021
Loans 90 days past due and accruing
Commercial and industrial	$	62		$	0		$	0
Total loans 90 days past due and accruing	$	62		$	0		$	0
Nonaccrual loans
Commercial and industrial	$	293		$	533		$	708
Commercial real estate	12,545			13,893			35,401
Residential real estate	11,536			11,178			11,556
Consumer and other	291			429			354
Total nonaccrual loans	$	24,665		$	26,033		$	48,019
Troubled debt restructurings not included above	4,872			5,124			5,776
Total nonperforming loans and leases	$	29,599		$	31,157		$	53,795
Other real estate owned	122			135			88
Total nonperforming assets	$	29,721		$	31,292		$	53,883
Allowance as a percentage of nonperforming loans and leases	147.95		%	137.51		%	88.31		%
Total nonperforming loans and leases as percentage of total loans and leases	0.57		%	0.61		%	1.04		%
Total nonperforming assets as percentage of total assets	0.38		%	0.40		%	0.67		%

Nonperforming assets include loans past due 90 days and accruing, nonaccrual loans, TDRs, and foreclosed real estate/other real estate owned. Total nonperforming assets of $29.7 million at June 30, 2022 were down $1.6 million or 5.0% compared to December 31, 2021, and $24.2 million or 44.8% compared to June 30, 2021. The decrease in nonperforming assets from June 30, 2021, was mainly in the commercial real estate portfolio and included the payoff of one relationship totaling $11.8 million in the hospitality industry and a $7.0 million charge-off of another relationship that included two loans in the hospitality industry during the fourth quarter of 2021. Nonperforming assets represented 0.38% of total assets at June 30, 2022, down from 0.40% at December 31, 2021, and 0.67% reported for June 30, 2021. The Company's ratio of nonperforming assets to total assets is well below the peer groups's most recent percentile ranking for March 31, 2022.

Loans are considered modified in a TDR when, due to a borrower’s financial difficulties, the Company makes a concession(s) to the borrower that it would not otherwise consider and the borrower could not obtain elsewhere. These modifications may include, among others, an extension of the term of the loan, and granting a period when interest-only payments can be made, with the principal payments made over the remaining term of the loan or at maturity. TDRs are included in the above table within the following categories: "loans 90 days past due and accruing", "nonaccrual loans", or "troubled debt restructurings not included above". Loans in the latter category include loans that meet the definition of a TDR but are performing in accordance with the modified terms and therefore classified as accruing loans. At June 30, 2022, the Company had $6.1 million in TDRs, and of that total $1.2 million was reported as nonaccrual and $4.9 million was considered performing and included in the table above.

In general, the Company places a loan on nonaccrual status if principal or interest payments become 90 days or more past due and/or management deems the collectability of the principal and/or interest to be in question, as well as when required by applicable regulations. Although in nonaccrual status, the Company may continue to receive payments on these loans. These payments are generally recorded as a reduction to principal, and interest income is recorded only after principal recovery is reasonably assured. 

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The ratio of the allowance to nonperforming loans and leases (loans past due 90 days and accruing, nonaccrual loans and restructured troubled debt) was 147.95% at June 30, 2022, compared to 137.51% at December 31, 2021, and 88.31% at June 30, 2021. The Company’s nonperforming loans and leases are mostly made up of individually evaluated loans with limited exposure or loans that require limited specific reserves due to the level of collateral available with respect to these loans and/or previous charge-offs.

The Company, through its internal loan review function, identified 20 commercial relationships from the loan portfolio totaling $29.7 million at June 30, 2022, that were potential problem loans. At December 31, 2021, the Company had identified 25 relationships totaling $36.5 million that were potential problem loans. Of the 20 relationships at June 30, 2022, that were Substandard, there were 8 relationships that equaled or exceeded $1.0 million, which in aggregate totaled $25.8 million, the largest of which was $7.4 million. The Company continues to monitor these potential problem relationships; however, management cannot predict the extent to which continued weak economic conditions or other factors may further impact borrowers. These loans remain in a performing status due to a variety of factors, including payment history, the value of collateral supporting the credits, and personal or government guarantees. These factors, when considered in the aggregate, give management reason to believe that the current risk exposure on these loans does not warrant accounting for these loans as nonperforming. However, these loans do exhibit certain risk factors, which have the potential to cause them to become nonperforming. Accordingly, management's attention is focused on these credits, which are reviewed on at least a quarterly basis.

Capital

Total equity was $624.3 million at June 30, 2022, a decrease of $104.6 million or 14.4% from December 31, 2021. The decrease was the result of an increase in unrealized losses on the available-for-sale portfolio from $19.3 million at year-end 2021 to $183.3 million at June 30, 2022, as a result of the increase in market interest rates in 2022. The decrease was partially offset by an increase in retained earnings.

Additional paid-in capital decreased by $9.2 million, from $312.5 million at December 31, 2021, to $303.3 million at June 30, 2022. The decrease was primarily attributable to a $14.1 million aggregate purchase price related to the Company's repurchase and retirement of 179,797 shares of its common stock during the first six months of 2022 pursuant to its publicly announced stock repurchase plan; partially offset by $2.9 million related shares issued for the employee stock ownership program and $1.9 million attributed to stock-based compensation.

Retained earnings increased by $27.5 million or 5.8% from $475.3 million at December 31, 2021, to $502.8 million at June 30, 2022, mainly reflecting net income of $44.1 million for the year-to-date period, less dividends of $16.6 million.

Accumulated other comprehensive loss increased from a net loss of $56.0 million at December 31, 2021, to a net loss of $178.9 million at June 30, 2022, reflecting a $122.9 million increase in unrealized losses on available-for-sale debt securities mainly due to changes in market rates, partially offset by a $900,000 decrease related to post-retirement benefit plan losses.

Cash dividends paid in the first six months of 2022 totaled approximately $16.6 million or $1.14 per common share, representing 37.7% of year to date 2022 earnings through June 30, 2022, compared to cash dividends of $16.1 million or $1.08 per common share paid in the first six months of 2021. Cash dividends per share during the first six months of 2022 were up 5.6% over the same period in 2021.

The Company and its subsidiary bank are subject to various regulatory capital requirements administered by Federal bank regulatory agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s business, results of operation and financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action (PCA), banks must meet specific guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classifications of the Company and its subsidiary banks are also subject to qualitative judgments by regulators concerning components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the maintenance of minimum amounts and ratios of common equity Tier 1 capital, Total capital and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes that the Company and its subsidiary bank meets all capital adequacy requirements to which they are subject.

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The following table provides a summary of the Company’s capital ratios as of June 30, 2022: 

Regulatory Capital Analysis
June 30, 2022	Actual				Minimum Capital Required - Basel III Fully Phased-In				Well Capitalized Requirement
(dollar amounts in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total Capital (to risk weighted assets)	$	755,159	14.07	%	$	563,544	10.50	%	$	536,709	10.00	%
Tier 1 Capital (to risk weighted assets)	$	707,095	13.17	%	$	456,203	8.50	%	$	429,367	8.00	%
Tier 1 Common Equity (to risk weighted assets)	$	707,095	13.17	%	$	375,696	7.00	%	$	348,861	6.50	%
Tier 1 Capital (to average assets)	$	707,095	9.02	%	$	313,597	4.00	%	$	391,996	5.00	%

As of June 30, 2022, the Company’s capital ratios exceeded the minimum required capital ratios plus the fully phased-in capital conservation buffer, and the minimum required capital ratios for well capitalized institutions. The capital levels required to be considered well capitalized, presented in the above table, are based upon prompt corrective action regulations, as amended to reflect the changes under Basel III Capital Rules.

Total capital as a percent of risk weighted assets decreased to 14.1% at June 30, 2022, compared with 14.2% as of December 31, 2021. Tier 1 capital as a percent of risk weighted assets decreased from 13.3% at the end of 2021 to 13.2% as of June 30, 2022. Tier 1 capital as a percent of average assets was 9.0% at June 30, 2022, up from 8.8% as of December 31, 2021. Common equity Tier 1 capital was 13.2% at the end of the second quarter of 2022, down from 13.3% at the end of 2021.

As of June 30, 2022, the capital ratios for the Company’s subsidiary bank also exceeded the minimum required capital ratios for well capitalized institutions, plus the fully phased-in capital conservation buffer.

In the first quarter of 2020, U.S. Federal regulatory authorities issued an interim final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, we elected to utilize the five-year CECL transition.

Deposits and Other Liabilities

Total deposits of $6.8 billion at June 30, 2022 were down $21.9 million or 0.3% from December 31, 2021. The decrease from year-end 2021 was primarily in checking, money market and savings balances, which collectively were down $49.1 million or 1.2%, and time deposits, which were down $44.8 million or 7.0%. Noninterest bearing deposits were up $72.0 million or 3.4% , from year-end 2021.

The most significant source of funding for the Company is core deposits. The Company defines core deposits as total deposits less time deposits of $250,000 or more, brokered deposits, municipal money market deposits, and reciprocal deposit relationships with municipalities. Core deposits grew by $22.0 million or 0.4% from year-end 2021, to $5.8 billion at June 30, 2022. Core deposits represented 85.7% of total deposits at June 30, 2022, compared to 85.1% of total deposits at December 31, 2021.

The Company uses both retail and wholesale repurchase agreements. Retail repurchase agreements are arrangements with local customers of the Company, in which the Company agrees to sell securities to the customer with an agreement to repurchase those securities at a specified later date. Retail repurchase agreements totaled $50.1 million at June 30, 2022, and $66.8 million at December 31, 2021. Management generally views retail repurchase agreements as an alternative to large time deposits.

The Company’s other borrowings totaled $295.6 million at June 30, 2022, up $171.6 million or 138.4% from $124.0 million at December 31, 2021. Borrowings at June 30, 2022 consisted of $235.6 million in overnight FHLB advances and $60.0 million of FHLB term advances, compared to $14.0 million in FHLB overnight advances and $110.0 million of FHLB term advances at year end 2021. Of the $60.0 million in FHLB term advances at June 30, 2022, $10 million is due to mature in less than one year and $50 million are due to mature in over one year.

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Liquidity

The objective of liquidity management is to ensure the availability of adequate funding sources to satisfy the demand for credit, deposit withdrawals, and business investment opportunities. The Company’s large, stable core deposit base and strong capital position are the foundation for the Company’s liquidity position. The Company uses a variety of resources to meet its liquidity needs, which include deposits, cash and cash equivalents, short-term investments, cash flow from lending and investing activities, repurchase agreements, and borrowings. The Company’s Asset/Liability Management Committee monitors asset and liability positions of the Company’s subsidiary banks individually and on a combined basis. The Committee reviews periodic reports on liquidity and interest rate sensitivity positions. Comparisons with industry and peer groups are also monitored. The Company’s strong reputation in the communities it serves, along with its strong financial condition, provides access to numerous sources of liquidity as described below. Management believes these diverse liquidity sources provide sufficient means to meet all demands on the Company’s liquidity that are reasonably likely to occur.

Core deposits, discussed above under "Deposits and Other Liabilities", are a primary and low cost funding source obtained primarily through the Company’s branch network. In addition to core deposits, the Company uses non-core funding sources to support asset growth. These non-core funding sources include time deposits of $250,000 or more, brokered time deposits, municipal money market deposits, reciprocal deposits, bank borrowings, securities sold under agreements to repurchase and overnight and term advances from the FHLB. Rates and terms are the primary determinants of the mix of these funding sources. Non-core funding sources of $1.3 billion at June 30, 2022 increased $111.1 million or 9.2% as compared to year-end 2021. Non-core funding sources, as a percentage of total liabilities, were 18.2% at June 30, 2022, compared to 17.0% at December 31, 2021. 

Non-core funding sources may require securities to be pledged against the underlying liability. Securities held at fair value were $1.5 billion at June 30, 2022 and $1.4 billion at December 31, 2021, and were either pledged or sold under agreements to repurchase. Pledged securities represented 63.7% of total securities at June 30, 2022, compared to 59.4% of total securities at December 31, 2021.

Cash and cash equivalents totaled $80.4 million as of June 30, 2022 which increased from $63.1 million at December 31, 2021. Short-term investments, consisting of securities due in one year or less, decreased from $77.9 million at December 31, 2021, to $61.9 million on June 30, 2022.

Cash flow from the loan and investment portfolios provides a significant source of liquidity. These assets may have stated maturities in excess of one year, but have monthly principal reductions. Total mortgage-backed securities, at fair value, were $833.7 million at June 30, 2022 compared with $947.7 million at December 31, 2021. Outstanding principal balances of residential mortgage loans, consumer loans, and leases totaled approximately $1.6 billion at June 30, 2022, up $46.0 million or 2.9% compared with year-end 2021. Aggregate amortization from monthly payments on these assets provides significant additional cash flow to the Company.

The Company's liquidity is enhanced by ready access to national and regional wholesale funding sources including Federal funds purchased, repurchase agreements, brokered deposits, and FHLB advances. Through its subsidiary bank, the Company has borrowing relationships with the FHLB and correspondent banks, which provide secured and unsecured borrowing capacity. As members of the FHLB, the Company can use certain unencumbered mortgage-related assets and securities to secure borrowings from the FHLB. At June 30, 2022, the established borrowing capacity with the FHLB was $1.51 billion, with available unencumbered mortgage-related assets of $1.21 billion. Additional assets may also qualify as collateral for FHLB advances, upon approval of the FHLB.

Accounting Standards Pending Adoption

ASU No. 2020-06, "Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions." The amendments in this update provides clarification on guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and provides new disclosure requirements for equity securities subject to contractual sale restrictions, that are measured at fair value. ASU 2022-06 is effective December 15, 2023 and is not expected to have a significant impact on our consolidated financial statements.

ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. It provides optional expedients and exceptions for applying U.S. generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are effective for all entities as of

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March 12, 2020 through December 31, 2022. Tompkins is currently evaluating the potential impact of ASU 2020-04 on our consolidated financial statements.

ASU 2022-01, "Derivatives and Hedging (Topic 815)" ("ASU 2022-01") clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios and financial assets. Among other things, the amended guidance established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible and renamed that method the “portfolio layer” method. ASU 2022-01 is effective January 1, 2023 and is not expected to have a significant impact on our consolidated financial statements.

ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326)" ("ASU 2022-02") eliminates the guidance on troubled debt restructurings and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. ASU 2022-02 is effective January 1, 2023, with early adoption permitted. Tompkins is currently assessing the impact that ASU 2022-02 will have on our consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

Interest rate risk is the primary market risk category associated with the Company’s operations. Interest rate risk refers to the volatility of earnings caused by changes in interest rates. The Company manages interest rate risk using income simulation to measure interest rate risk inherent in its on-balance sheet and off-balance sheet financial instruments at a given point in time. The simulation models are used to estimate the potential effect of interest rate shifts on net interest income for future periods. Each quarter, the Company’s Asset/Liability Management Committee reviews the simulation results to determine whether the exposure of net interest income to changes in interest rates remains within levels approved by the Company’s Board of Directors. The Committee also considers strategies to manage this exposure and incorporates these strategies into the investment and funding decisions of the Company. The Company does not currently use derivatives, such as interest rate swaps, to manage its interest rate risk exposure, but may consider such instruments in the future.

The Company’s Board of Directors has set a policy that interest rate risk exposure will remain within a range whereby net interest income will not decline by more than 10% in one year as a result of a 100 basis point parallel change in rates. Based upon the simulation analysis performed as of May 31, 2022, the base case scenario, which assumes interest rates are unchanged from the date of the simulation, reflects an improvement in net interest income over the next 12 to 18 months. The same simulation shows that a 200 basis point parallel increase in interest rates over a one-year time frame would result in a one-year decrease in net interest income from the base case of approximately 3.8%, while a 100 basis point parallel decline in interest rates over a one-year period would result in a one year decrease in net interest income of 1.2% from the base case. The simulation assumes no balance sheet growth and no management action to address balance sheet mismatches.

The decrease in net interest income in the rising rate scenario is a result of the balance sheet showing a more liability sensitive position over a one year time horizon. As such, in the short-term net interest income is expected to trend below the base assumption, as upward adjustments to rate sensitive deposits and short-term funding outpace increases to asset yields which are concentrated in intermediate to longer-term products. As intermediate and longer-term assets continue to reprice/adjust into higher rate environment and funding costs stabilize, net interest income is expected to trend upwards.

The down 100 rate scenario decreases net interest income slightly in the first year based on the Company's assets repricing downward to a greater degree than the rates on the Company's interest-bearing liabilities, mainly deposits and overnight borrowings. Rates on savings and money market accounts are at or near historically low levels allowing for minimal interest expense relief in the first year of a declining rate scenario. In addition, the model assumes that prepayments accelerate in the down interest rate environment resulting in additional pressure on asset yields as proceeds are reinvested at lower rates.

Although the simulation model is useful in identifying potential exposure to interest rate movements, actual results may differ from those modeled as the repricing, maturity, and prepayment characteristics of financial instruments may change to a different degree than modeled. In addition, the model does not reflect actions that management may employ to manage the Company’s interest rate risk exposure. The Company’s current liquidity profile, capital position, and growth prospects, offer a level of flexibility for management to take actions that could offset some of the negative effects of unfavorable movements in interest rates. Management believes the current exposure to changes in interest rates is not significant in relation to the earnings and capital strength of the Company.

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In addition to the simulation analysis, management uses an interest rate gap measure. The table below is a Condensed Static Gap Report, which illustrates the anticipated repricing intervals of assets and liabilities as of June 30, 2022. The Company’s one-year net interest rate gap was a negative $609.9 million or 7.78% of total assets at June 30, 2022, compared with a negative $331.5 million or 4.24% of total assets at December 31, 2021. A negative gap position exists when the amount of interest-bearing liabilities maturing or repricing exceeds the amount of interest-earning assets maturing or repricing within a particular time period. This analysis suggests that the Company’s net interest income contains a higher degree of risk in a rising rate environment over the next 12 months. An interest rate gap measure could be significantly affected by external factors such as a rise or decline in interest rates, loan or securities prepayments, and deposit withdrawals.

Condensed Static Gap - June 30, 2022						Repricing Interval
(In thousands)	Total		0-3 months			3-6 months			6-12 months			Cumulative 12 months
Interest-earning assets1	$	7,628,083	$	1,021,698		$	371,565		$	574,865		$	1,968,128
Interest-bearing liabilities	4,907,493		2,279,914			120,705			177,406			2,578,025
Net gap position			$	(1,258,216)		$	250,860		$	397,459		$	(609,897)
Net gap position as a percentage of total assets			(16.04)		%	3.20		%	5.07		%	(7.78)		%

 1 Balances of available securities are shown at amortized cost 

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of June 30, 2022.

Based upon that evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Report on Form 10-Q, the Company's disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company's internal control over financial reporting that occurred during the quarter ended June 30, 2022, that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings 

The Company is subject to various claims and legal actions that arise in the ordinary course of conducting business. As of June 30, 2022, 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. 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.

Item 1A. Risk Factors

There have been no material changes in the risk factors previously disclosed under Item 1A. of the Company’s Annual Report on Form 10-K, for the fiscal year ended December 31, 2021.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
	(a)	(b)		(c)	(d)
April 1, 2022 through April 30, 2022	39,640	$	77.11	37,629	200,000
May 1, 2022 through May 31, 2022	677	72.79		0	200,000
June 1, 2022 through June 30, 2022	12,335	71.67		12,000	188,000
Total	52,652	$	75.78	49,629	188,000

Included in the table above are 2,011 shares purchased in April 2022, at an average cost of $77.45, and 677 shares purchased in May 2022, at an average cost of $72.79, by the trustee of the rabbi trust established by the Company under the Company’s Stock Retainer Plan For Eligible Directors of Tompkins Financial Corporation and Participating Subsidiaries, which were part of the director deferred compensation under that plan. In addition, the table includes 335 shares delivered to the Company in June 2022 at an average cost of $78.65 to satisfy mandatory tax withholding requirements upon vesting of restricted stock under the Company's 2009 and 2019 Equity Plans.

On October 22, 2021, the Company’s Board of Directors authorized a share repurchase plan (the "2021 Repurchase Plan") for the repurchase of up to 400,000 shares of the Company’s common stock over the 24 months following adoption of the 2021 Repurchase Plan. Shares may be repurchased from time to time under the 2021 Repurchase Plan in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in accordance with federal securities laws, and the repurchase program may be suspended, modified or terminated by the Board of Directors at any time for any reason. Under the 2021 Repurchase Plan, the Company had repurchased 212,000 shares through June 30, 2022, at an average cost of $78.89.

Recent Sales of Unregistered Securities

None

Item 3. Defaults Upon Senior Securities

None 

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None        

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Item 6.     Exhibits

EXHIBIT INDEX

Exhibit Number	Description
3.1	Amended and Restated Certificate of Incorporation of the Company, incorporated herein by reference to Exhibit 3(i) to the Company’s Form 10-Q, filed with the Commission on August 11, 2008.
3.2	Second Amended and Restated Bylaws of the Company, incorporated herein by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the Commission on January 31, 2011.
31.1	Certification of Principal Executive Officer as required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
31.2	Certification of Principal Financial Officer as required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.
32.1	Certification of Principal Certification of Principal Executive Officer as required by Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, 18 U.S.C. Section 1350.C. Section 1350
32.2	Certification of Principal Financial Officer as required by Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended, 18 U.S.C. Section 1350
101 INS**	The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document
101 SCH**	Inline XBRL Taxonomy Extension Schema Document
101 CAL**	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101 DEF**	Inline XBRL Taxonomy Extension Definition Linkbase Document
101 LAB**	Inline XBRL Taxonomy Extension Label Linkbase Document
101 PRE**	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the interactive date file because its XBRL tags are embedded with the inline XBRL document.
** Attached as Exhibit 101 to this report are the following formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Condition as of June 30, 2022 and December 31, 2021; (ii) Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021; (iii) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021; (iv) Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021; (v) Consolidated Statements of Changes in Shareholders' Equity for the three and six months ended June 30, 2022 and 2021; and (vi Notes to Unaudited Consolidated Financial Statements.

67

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 08, 2022

TOMPKINS FINANCIAL CORPORATION

By:	/s/ Stephen S. Romaine
	Stephen S. Romaine
	President and Chief Executive Officer
	(Principal Executive Officer)

By:	/s/ Francis M. Fetsko
	Francis M. Fetsko
	Executive Vice President, Chief Financial Officer, and Chief Operating Officer
	(Principal Financial Officer)
	(Principal Accounting Officer)

68

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Stephen S. Romaine, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tompkins Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 08, 2022
/s/ Stephen S. Romaine
Stephen S. Romaine
President and Chief Executive Officer
(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I,  Francis M. Fetsko, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Tompkins Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 08, 2022
/s/ Francis M. Fetsko
Francis M. Fetsko
Executive Vice President, Chief Financial Officer, and Chief Operating Officer
(Principal Financial Officer)
(Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

In connection with the filing of the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022 (the “Report”) by Tompkins Financial Corporation (the “Company”), the undersigned, as the Chief Executive Officer of the Company, hereby certifies pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

The Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 08, 2022
	/s/ Stephen S. Romaine
	Stephen S. Romaine
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION

In connection with the filing of the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022 (the “Report”) by Tompkins Financial Corporation (the “Company”), the undersigned, as the Chief Financial Officer of the Company, hereby certifies pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

The Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 08, 2022
	/s/ Francis M. Fetsko
	Francis M. Fetsko
	Executive Vice President,
	Chief Financial Officer, and Chief Operating Officer
	(Principal Financial Officer)
	(Principal Accounting Officer)

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	1-12709
Entity Registrant Name	Tompkins Financial Corp
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	16-1482357
Entity Address, Address Line One	P.O. Box 460
Entity Address, City or Town	Ithaca
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14851
City Area Code	888
Local Phone Number	503-5753
Title of 12(b) Security	Common Stock, $0.10 par value
Trading Symbol	TMP
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,490,602
Entity Central Index Key	0001005817
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022

XML

CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
ASSETS
Cash and noninterest bearing balances due from banks	$ 20,878	$ 23,078
Interest bearing balances due from banks	59,514	40,029
Cash and Cash Equivalents	80,392	63,107
Available-for-sale debt securities, at fair value (amortized cost of $2,075,020 at June 30, 2022 and $2,063,790 at December 31, 2021)	1,891,718	2,044,513
Held-to-maturity securities, at amortized cost (fair value of $274,660 at June 30, 2022 and $282,288 December 31, 2021)	312,315	284,009
Equity securities, at fair value (amortized cost $818 at June 30, 2022 and $902 at December 31, 2021)	818	902
Total loans and leases, net of unearned income and deferred costs and fees	5,162,503	5,075,467
Less: Allowance for credit losses	43,793	42,843
Net Loans and Leases	5,118,710	5,032,624
Federal Home Loan Bank and other stock	17,913	10,996
Bank premises and equipment, net	83,661	85,416
Corporate owned life insurance	87,093	86,495
Goodwill	92,447	92,447
Other intangible assets, net	3,124	3,643
Accrued interest and other assets	154,270	115,830
Total Assets	7,842,461	7,819,982
Interest bearing:
Checking, savings and money market	3,966,965	4,016,025
Time	594,853	639,674
Noninterest bearing	2,207,703	2,135,736
Total Deposits	6,769,521	6,791,435
Federal funds purchased and securities sold under agreements to repurchase	50,075	66,787
Other borrowings	295,600	124,000
Other liabilities	102,947	108,819
Total Liabilities	7,218,143	7,091,041
Tompkins Financial Corporation shareholders' equity:
Common Stock - par value $0.10 per share: Authorized 25,000,000 shares; Issued: 14,540,514 at June 30, 2022; and 14,696,911 at December 31, 2021	1,454	1,470
Additional paid-in capital	303,335	312,538
Retained earnings	502,770	475,262
Accumulated other comprehensive loss	(178,869)	(55,950)
Treasury stock, at cost – 123,030 shares at June 30, 2022, and 124,709 shares at December 31, 2021	(5,847)	(5,791)
Total Tompkins Financial Corporation Shareholders’ Equity	622,843	727,529
Noncontrolling interests	1,475	1,412
Total Equity	624,318	728,941
Total Liabilities and Equity	$ 7,842,461	$ 7,819,982

XML

CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Available-for-sale securities, at amortized cost	$ 2,075,020	$ 2,063,790
Securities - held-to-maturity	274,660	282,288
Equity securities, at amortized cost	$ 818	$ 902
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized (in shares)	25,000,000	25,000,000
Common stock, issued (in shares)	14,540,514	14,696,911
Treasury stock, shares (in shares)	123,030	124,709

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
INTEREST AND DIVIDEND INCOME
Loans	$ 52,505	$ 53,653	$ 103,636	$ 107,860
Due from banks	64	45	105	130
Available-for-sale debt securities	7,063	5,626	13,833	10,876
Held-to-maturity securities	1,201	312	2,330	312
Federal Home Loan Bank and other stock	120	199	225	412
Interest income	60,953	59,835	120,129	119,590
INTEREST EXPENSE
Time certificates of deposits of $250,000 or more	400	567	826	1,206
Other deposits	1,647	2,235	3,267	4,747
Federal funds purchased and securities sold under agreements to repurchase	15	15	31	31
Trust preferred debentures	0	821	0	996
Other borrowings	629	1,351	1,129	2,727
Total Interest Expense	2,691	4,989	5,253	9,707
Net Interest Income	58,262	54,846	114,876	109,883
Less: Provision (credit) for credit loss expense	856	(3,071)	336	(4,901)
Net Interest Income After Credit for Credit Loss Expense	57,406	57,917	114,540	114,784
NONINTEREST INCOME
Insurance commissions and fees	8,429	8,054	17,746	17,220
Investment services income	4,596	4,717	9,513	9,390
Service charges on deposit accounts	1,756	1,471	3,535	2,941
Card services income	2,959	2,951	5,502	5,334
Other income	1,241	1,665	2,717	3,639
Net (loss) gain on securities transactions	(37)	0	(84)	317
Total Noninterest Income	18,944	18,858	38,929	38,841
NONINTEREST EXPENSE
Salaries and wages	24,396	23,992	47,668	46,652
Other employee benefits	6,341	6,626	12,138	12,110
Net occupancy expense of premises	3,131	3,561	6,672	7,023
Furniture and fixture expense	2,004	2,204	3,995	4,154
Amortization of intangible assets	219	329	437	659
Other operating expense	13,029	10,730	25,049	21,355
Total Noninterest Expenses	49,120	47,442	95,959	91,953
Income Before Income Tax Expense	27,230	29,333	57,510	61,672
Income Tax Expense	6,329	6,471	13,305	13,151
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation	20,901	22,862	44,205	48,521
Less: Net Income Attributable to Noncontrolling Interests	32	31	63	64
Net Income Attributable to Tompkins Financial Corporation	$ 20,869	$ 22,831	$ 44,142	$ 48,457
Basic Earnings Per Share (in dollars per share)	$ 1.45	$ 1.55	$ 3.06	$ 3.28
Diluted Earnings Per Share (in dollars per share)	$ 1.45	$ 1.54	$ 3.05	$ 3.26

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income attributable to noncontrolling interests and Tompkins Financial Corporation	$ 20,901	$ 22,862	$ 44,205	$ 48,521
Available-for-sale debt securities:
Change in net unrealized gain/(loss) during the period	(43,449)	8,489	(123,854)	(16,757)
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0	0	0	(249)
Employee benefit plans:
Amortization of net retirement plan actuarial loss	389	537	853	1,114
Amortization of net retirement plan prior service cost	40	42	82	84
Other comprehensive (loss) income	(43,020)	9,068	(122,919)	(15,808)
Subtotal comprehensive (loss) income attributable to noncontrolling interests and Tompkins Financial Corporation	(22,119)	31,930	(78,714)	32,713
Less: Net income attributable to noncontrolling interests	(32)	(31)	(63)	(64)
Total comprehensive (loss) income attributable to Tompkins Financial Corporation	$ (22,151)	$ 31,899	$ (78,777)	$ 32,649

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
OPERATING ACTIVITIES
Net income attributable to Tompkins Financial Corporation	$ 44,142	$ 48,457
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for credit loss expense	336	(4,901)
Depreciation and amortization of premises, equipment, and software	5,245	5,102
Amortization of intangible assets	437	659
Earnings from corporate owned life insurance	(593)	(1,111)
Net amortization on securities	3,280	6,869
Amortization/accretion related to purchase accounting	(511)	147
Net loss (gain) on securities transactions	84	(317)
Net gain on sale of loans originated for sale	(57)	(582)
Proceeds from sale of loans originated for sale	362	17,379
Loans originated for sale	(1,127)	(15,231)
Net gain on sale of bank premises and equipment	(41)	11
Net excess tax benefit from stock based compensation	29	251
Stock-based compensation expense	1,973	2,434
Decrease in accrued interest receivable	176	4,450
Decrease in accrued interest payable	(86)	(316)
Other, net	(2,132)	(12,808)
Net Cash Provided by Operating Activities	51,517	50,493
INVESTING ACTIVITIES
Proceeds from maturities, calls and principal paydowns of available-for-sale debt securities	134,653	257,771
Proceeds from sales of available-for-sale debt securities	0	38,924
Purchases of available-for-sale debt securities	(149,148)	(712,688)
Purchases of held-to-maturity securities	(28,320)	(151,817)
Net (increase) decrease in loans	(85,037)	85,006
Proceeds from sale/redemptions of Federal Home Loan Bank stock	25,148	3,557
Purchases of Federal Home Loan Bank and other stock	(32,065)	(3,166)
Proceeds from sale of bank premises and equipment	123	63
Purchases of bank premises, equipment and software	(4,774)	(1,955)
Redemption of corporate owned life insurance	0	169
Other, net	(142)	124
Net Cash Used in Investing Activities	(139,562)	(484,012)
FINANCING ACTIVITIES
Net increase in demand, money market, and savings deposits	22,907	435,312
Net decrease in time deposits	(44,583)	(35,799)
Net decrease in Federal funds purchased and securities sold under agreements to repurchase	(16,712)	(13,711)
Increase in other borrowings	235,600	0
Repayment of other borrowings	(64,000)	(20,000)
Redemption of trust preferred debentures	0	(5,150)
Cash dividends	(16,634)	(16,097)
Repurchase of common stock	(14,128)	(7,983)
Shares issued for dividend reinvestment plan	0	2
Shares issued for employee stock ownership plan	2,951	0
Net shares issued related to restricted stock awards	(29)	0
Net proceeds from exercise of stock options	(42)	(503)
Net Cash Provided by Financing Activities	105,330	336,071
Net Increase (Decrease) in Cash and Cash Equivalents	17,285	(97,448)
Cash and cash equivalents at beginning of period	63,107	388,462
Total Cash and Cash Equivalents at End of Period	80,392	291,014
Supplemental Information:
Cash paid during the year for - Interest	5,578	10,288
Cash paid during the year for - Taxes	10,871	19,341
Transfer of loans to other real estate owned	82	0
Right-of-use assets obtained in exchange for new lease liabilities	$ 568	$ 21

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Non- controlling Interests
Beginning balances at Dec. 31, 2020	$ 717,689	$ 1,496	$ 333,976	$ 418,413	$ (32,074)	$ (5,534)	$ 1,412
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to noncontrolling interests and Tompkins Financial Corporation	48,521			48,457			64
Other comprehensive income (loss)	(15,808)				(15,808)
Total Comprehensive Income (Loss)	32,713
Cash dividends	(16,097)			(16,097)
Net exercise of stock options	(503)	1	(504)
Common stock repurchased and returned to unissued status	(7,983)	(10)	(7,973)
Shares issued for dividend reinvestment plan	2	0	2
Stock-based compensation expense	2,434		2,434
Directors deferred compensation plan	0		(54)			54
Restricted stock activity	0
Partial repurchase of noncontrolling interest	(2)						(2)
Ending balances at Jun. 30, 2021	$ 728,253	1,487	327,881	450,773	(47,882)	(5,480)	1,474
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock activity (in shares)	5,213
Beginning balances at Mar. 31, 2021	$ 709,936	1,494	333,247	435,990	(56,950)	(5,288)	1,443
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to noncontrolling interests and Tompkins Financial Corporation	22,862			22,831			31
Other comprehensive income (loss)	9,068				9,068
Total Comprehensive Income (Loss)	31,930
Cash dividends	(8,048)			(8,048)
Net exercise of stock options	(351)	1	(352)
Common stock repurchased and returned to unissued status	(6,475)	(8)	(6,467)
Shares issued for dividend reinvestment plan	2	0	2
Stock-based compensation expense	1,259		1,259
Directors deferred compensation plan	0		192			(192)
Restricted stock activity	0
Ending balances at Jun. 30, 2021	$ 728,253	1,487	327,881	450,773	(47,882)	(5,480)	1,474
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock activity (in shares)	2,317
Beginning balances at Dec. 31, 2021	$ 728,941	1,470	312,538	475,262	(55,950)	(5,791)	1,412
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to noncontrolling interests and Tompkins Financial Corporation	44,205			44,142			63
Other comprehensive income (loss)	(122,919)				(122,919)
Total Comprehensive Income (Loss)	(78,714)
Cash dividends	(16,634)			(16,634)
Net exercise of stock options	(42)		(42)
Common stock repurchased and returned to unissued status	(14,128)	(18)	(14,110)
Stock-based compensation expense	1,973		1,973
Shares issued for employee stock ownership plan	2,951	4	2,947
Directors deferred compensation plan	0		56			(56)
Restricted stock activity	(29)	(2)	(27)
Ending balances at Jun. 30, 2022	$ 624,318	1,454	303,335	502,770	(178,869)	(5,847)	1,475
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock activity (in shares)	14,684
Beginning balances at Mar. 31, 2022	$ 657,492	1,460	305,880	490,200	(135,849)	(5,642)	1,443
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to noncontrolling interests and Tompkins Financial Corporation	20,901			20,869			32
Other comprehensive income (loss)	(43,020)				(43,020)
Total Comprehensive Income (Loss)	(22,119)
Cash dividends	(8,299)			(8,299)
Common stock repurchased and returned to unissued status	(3,758)	(5)	(3,753)
Stock-based compensation expense	1,028		1,028
Directors deferred compensation plan	0		205			(205)
Restricted stock activity	(26)	(1)	(25)
Ending balances at Jun. 30, 2022	$ 624,318	$ 1,454	$ 303,335	$ 502,770	$ (178,869)	$ (5,847)	$ 1,475
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock activity (in shares)	7,217

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.57	$ 0.54	$ 1.14	$ 1.08
Net exercise of stock options (in shares)		5,377	630	8,110
Common stock repurchased and returned to unissued status (in shares)	49,629	80,004	179,797	101,535
Shares issued for dividend reinvestment plan (in shares)		32		32
Shares issued for employee stock ownership plan (in shares)			37,454
Directors deferred compensation plan (in shares)	2,688	2,394	1,679	4,001
Restricted stock activity (in shares)	7,217	2,317	14,684	5,213

XML

Business

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business

Business

Tompkins Financial Corporation ("Tompkins" or the "Company") is headquartered in Ithaca, New York and is registered as a Financial Holding Company with the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended. The Company is a locally oriented, community-based financial services organization that offers a full array of products and services, including commercial and consumer banking, leasing, trust and investment management, financial planning and wealth management, and insurance services. Effective January 1, 2022, the Company's four wholly-owned banking subsidiaries were combined into one bank, with the Bank of of Castile, Mahopac Bank, and VIST Bank merging with and into Tompkins Trust Company (the "Trust Company") with the Trust Company as the surviving institution. Immediately following the merger, the Trust Company changed its name to Tompkins Community Bank. At June 30, 2022, the Company had one wholly-owned banking subsidiary, Tompkins Community Bank. The Company also has a wholly-owned insurance agency subsidiary, Tompkins Insurance Agencies, Inc. ("Tompkins Insurance"). Tompkins Community Bank provides a full array of trust and investment services under the Tompkins Financial Advisors brand, including investment management, trust and estate, financial and tax planning as well as life, disability and long-term care insurance services. The Company’s principal offices are located at 118 E. Seneca Street, Ithaca, New York, 14850, and its telephone number is (888) 503-5753. The Company’s common stock is traded on the NYSE American under the symbol "TMP."

As a registered financial holding company, the Company is regulated under the Bank Holding Company Act of 1956 ("BHC Act"), as amended and is subject to examination and comprehensive regulation by the Federal Reserve Board ("FRB"). The Company is also subject to the jurisdiction of the Securities and Exchange Commission ("SEC") and is subject to disclosure and regulatory requirements under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The Company is subject to the rules of the NYSE American for listed companies.

Tompkins Community Bank is subject to examination and comprehensive regulation by various regulatory authorities, including the Federal Deposit Insurance Corporation ("FDIC"), and the New York State Department of Financial Services ("NYSDFS"). Each of these agencies issues regulations and requires the filing of reports describing the activities and financial condition of the entities under its jurisdiction. Likewise, such agencies conduct examinations on a recurring basis to evaluate the safety and soundness of the institutions, and to test compliance with various regulatory requirements, including: consumer protection, privacy, fair lending, the Community Reinvestment Act, the Bank Secrecy Act, sales of non-deposit investments, electronic data processing, and trust department activities. These agencies also examine and regulate the trust business of Tompkins Community Bank.

Tompkins Insurance is subject to examination and regulation by the NYSDFS and the Pennsylvania Insurance Department

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Basis of Presentation

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited consolidated financial statements included in this quarterly report do not include all of the information and footnotes required by U.S. Generally Accepted Accounting Principles ("GAAP") for a full year presentation and certain disclosures have been condensed or omitted in accordance with rules and regulations of the SEC. In the application of certain accounting policies, management is required to make assumptions regarding the effect of matters that are inherently uncertain. These estimates and assumptions affect the reported amounts of certain assets, liabilities, revenues, and expenses in the unaudited consolidated financial statements. Different amounts could be reported under different conditions, or if different assumptions were used in the application of these accounting policies. The accounting policies that management considers critical in this respect are the determination of the allowance for credit losses and the review of its securities portfolio for other than temporary impairment.

In management’s opinion, the unaudited consolidated financial statements reflect all adjustments of a normal recurring nature. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2022. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Cash and cash equivalents in the consolidated statements of cash flow include cash and noninterest bearing balances due from banks, interest-bearing balances due from banks, and money market funds. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risk on cash and cash equivalents.

The consolidated financial information included herein combines the results of operations, the assets, liabilities, and shareholders’ equity of the Company and its subsidiaries. Amounts in the prior periods’ unaudited consolidated financial statements are reclassified when necessary to conform to the current periods’ presentation. All significant intercompany balances and transactions are eliminated in consolidation.

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Securities

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

Available-for-Sale Debt Securities

The following tables summarize available-for-sale debt securities held by the Company at June 30, 2022 and December 31, 2021:

	Available-for-Sale Debt Securities
June 30, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	191,051	$	0	$	16,949	$	174,102
Obligations of U.S. Government sponsored entities	863,235		36		69,778		793,493
Obligations of U.S. states and political subdivisions	95,661		54		7,637		88,078
Mortgage-backed securities – residential, issued by
U.S. Government agencies	63,185		38		4,109		59,114
U.S. Government sponsored entities	859,388		18		84,835		774,571
U.S. corporate debt securities	2,500		0		140		2,360
Total available-for-sale debt securities	$	2,075,020	$	146	$	183,448	$	1,891,718

	Available-for-Sale Debt Securities
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	160,291	$	85	$	2,542	$	157,834
Obligations of U.S. Government sponsored entities	843,218		4,527		15,372		832,373
Obligations of U.S. states and political subdivisions	102,177		2,092		100		104,169
Mortgage-backed securities – residential, issued by
U.S. Government agencies	76,502		1,187		532		77,157
U.S. Government sponsored entities	879,102		5,735		14,281		870,556
U.S. corporate debt securities	2,500		0		76		2,424
Total available-for-sale debt securities	$	2,063,790	$	13,626	$	32,903	$	2,044,513

Held-to-Maturity Debt Securities

The following tables summarize held-to-maturity debt securities held by the Company at June 30, 2022 and December 31, 2021:

	Held-to-Maturity Securities
June 30, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	86,582	$	0	$	9,237	$	77,345
Obligations of U.S. Government sponsored entities	225,733		0		28,418		197,315
Total held-to-maturity debt securities	$	312,315	$	0	$	37,655	$	274,660

	Held-to-Maturity Securities
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	86,689	$	279	$	600	$	86,368
Obligations of U.S. Government sponsored entities	197,320		389		1,789		195,920
Total held-to-maturity debt securities	$	284,009	$	668	$	2,389	$	282,288

The Company may from time to time sell debt securities from its available-for-sale portfolio. Realized gains on sales of available-for-sale debt securities were $0 for the three and six months ended June 30, 2022 and $0 and $329,000 for the three and six months ended June 30, 2021. Realized losses on available-for-sale debt securities were $0 for both the three and six months ended June 30, 2022, and for the three and six months ended June 30, 2021. Proceeds from the sale of available-for-sale debt securities were $0 for the three and six months ended June 30, 2022, and $2.2 million and $38.9 million for the three and six months ended June 30, 2021, respectively. Sales of available-for-sale investment securities were the result of general investment portfolio and interest rate risk management. The Company's investment portfolio includes callable securities that may be called prior to maturity. There were no realized gains or losses on called available-for-sale debt securities for both the three and six months ended June 30, 2022 and June 30, 2021. The Company also recognized net losses of $36,700 and $83,700 for the three and six months ended June 30, 2022, and net losses of $0 and $12,000 for the three and six months ended June 30, 2021 on equity securities, reflecting the change in fair value.

The following table summarizes available-for-sale debt securities that had unrealized losses at June 30, 2022, and December 31, 2021:

June 30, 2022	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	169,550	$	16,547	$	4,552	$	402	$	174,102	$	16,949
Obligations of U.S. Government sponsored entities	353,414		23,720		411,422		46,058		764,836		69,778
Obligations of U.S. states and political subdivisions	71,476		6,901		3,123		736		74,599		7,637
Mortgage-backed securities – residential, issued by
U.S. Government agencies	36,509		1,299		21,389		2,810		57,898		4,109
U.S. Government sponsored entities	520,389		35,937		250,441		48,898		770,830		84,835
U.S. corporate debt securities	0		0		2,360		140		2,360		140
Total available-for-sale debt securities	$	1,151,338	$	84,404	$	693,287	$	99,044	$	1,844,625	$	183,448

December 31, 2021	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	147,810	$	2,542	$	0	$	0	$	147,810	$	2,542
Obligations of U.S. Government sponsored entities	362,895		6,694		289,210		8,678		652,105		15,372
Obligations of U.S. states and political subdivisions	9,700		85		1,283		15		10,983		100
Mortgage-backed securities – residential, issued by
U.S. Government agencies	22,074		160		16,846		372		38,920		532
U.S. Government sponsored entities	553,351		11,440		84,537		2,841		637,888		14,281
U.S. corporate debt securities	0		0		2,424		76		2,424		76
Total available-for-sale debt securities	$	1,095,830	$	20,921	$	394,300	$	11,982	$	1,490,130	$	32,903

The following table summarizes held-to-maturity debt securities that had unrealized losses at June 30, 2022 and December 31, 2021:

June 30, 2022	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	77,345	$	9,237	$	0	$	0	$	77,345	$	9,237
Obligations of U.S. Government sponsored entities	197,315		28,418		$	0	$	0	$	197,315	28,418
Total held-to-maturity debt securities	$	274,660	$	37,655	$	0	$	0	$	274,660	$	37,655

December 31, 2021	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	35,280	$	600	$	0	$	0	$	35,280	$	600
Obligations of U.S. Government sponsored entities	84,592		1,789		0		0		84,592		1,789
Total held-to-maturity debt securities	$	119,872	$	2,389	$	0	$	0	$	119,872	$	2,389

The Company evaluates available-for-sale debt securities for expected credit losses ("ECL") in unrealized loss positions at each measurement date to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors.

Factors that may be indicative of ECL include, but are not limited to, the following:

• Extent to which the fair value is less than the amortized cost basis.

• Adverse conditions specifically related to the security, an industry, or geographic area (changes in technology,

business practice).

• Payment structure of the debt security with respect to underlying issuer or obligor.

• Failure of the issuer to make scheduled payment of principal and/or interest.

• Changes to the rating of a security or issuer by a nationally recognized statistical rating organization.

• Changes in tax or regulatory guidelines that impact a security or underlying issuer.

For available-for-sale debt securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline in the fair value below the amortized cost basis (technical impairment) is the result of changes in interest rates or reflects a fundamental change in the credit worthiness of the underlying issuer. Any impairment that is not credit related is recognized in other comprehensive income (loss), net of applicable taxes. Credit-related impairment is recognized as an

allowance for credit losses ("ACL") on the Statement of Condition, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Both the ACL and the adjustment to net income may be reversed if conditions change.

The gross unrealized losses reported for residential mortgage-backed securities relate to investment securities issued by U.S. government sponsored entities such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and

U.S. government agencies such as Government National Mortgage Association. The total gross unrealized losses, shown in the tables above, were primarily attributable to changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit-related quality of the investment securities. The Company does not have the intent to sell these securities and does not believe it is more likely than not that the Company will be required to sell these securities before a recovery of amortized cost.

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security type with each type sharing similar risk characteristics and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management has made the accounting policy election to exclude accrued interest receivable on held-to-maturity debt securities from the estimate of credit losses. As of June 30, 2022, the held-to-maturity portfolio consisted of U.S. Treasury securities and securities issued by U.S. government-sponsored enterprises, including The Federal National Mortgage Agency and the Federal Farm Credit Banks Funding Corporation. U.S. Treasury securities are backed by the full faith and credit of and/or guaranteed by the U.S. government, and it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities. Securities issued by U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as "risk-free," and have a long history of zero credit loss. As such, the Company did not record an allowance for credit losses for these securities as of June 30, 2022, or December 31, 2021.

The amortized cost and estimated fair value of debt securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities are shown separately since they are not due at a single maturity date.

June 30, 2022
(In thousands)	Amortized Cost		Fair Value
Available-for-sale debt securities:
Due in one year or less	$	61,909	$	61,879
Due after one year through five years	534,330		503,095
Due after five years through ten years	505,724		451,324
Due after ten years	50,484		41,735
Total	1,152,447		1,058,033
Mortgage-backed securities	922,573		833,685
Total available-for-sale debt securities	$	2,075,020	$	1,891,718

December 31, 2021
(In thousands)	Amortized Cost		Fair Value
Available-for-sale debt securities:
Due in one year or less	$	77,159	$	77,892
Due after one year through five years	474,537		471,776
Due after five years through ten years	501,748		492,573
Due after ten years	54,742		54,559
Total	1,108,186		1,096,800
Mortgage-backed securities	955,604		947,713
Total available-for-sale debt securities	$	2,063,790	$	2,044,513

June 30, 2022
(In thousands)	Amortized Cost		Fair Value
Held-to-maturity debt securities:
Due after five years through ten years	$	312,315	$	274,660
Total held-to-maturity debt securities	$	312,315	$	274,660

December 31, 2021
(In thousands)	Amortized Cost		Fair Value
Held-to-maturity debt securities:
Due after five years through ten years	$	284,009	$	282,288
Total held-to-maturity debt securities	$	284,009	$	282,288

The Company also holds non-marketable Federal Home Loan Bank New York ("FHLBNY") stock and non-marketable Atlantic Community Bankers Bank ("ACBB") stock, all of which are required to be held for regulatory purposes and for borrowing availability. The required investment in FHLB stock is tied to the Company’s borrowing levels with the FHLB. The required investment in FHLB stock is tied to the Company’s borrowing levels with the FHLB. Holdings of FHLBNY stock and ACBB stock totaled $17.8 million and $95,000, respectively, at June 30, 2022. These securities are carried at par, which is also cost. The FHLBNY continues to pay dividends and repurchase stock. Quarterly, we evaluate our investment in the FHLB for impairment. We evaluate recent and long-term operating performance, liquidity, funding and capital positions, stock repurchase history, dividend history and impact of legislative and regulatory changes. Based on our most recent evaluation, as of June 30, 2022, we determined that no impairment write-downs were required.

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Loans and Leases

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Loans and Leases

Loans and Leases

Loans and leases at June 30, 2022 and December 31, 2021 were as follows:

(In thousands)	06/30/2022		12/31/2021
Commercial and industrial
Agriculture	$	69,291	$	99,172
Commercial and industrial other	717,837		699,121
PPP loans*	3,499		71,260
Subtotal commercial and industrial	790,627		869,553
Commercial real estate
Construction	208,695		178,582
Agriculture	200,089		195,973
Commercial real estate other	2,361,790		2,278,599
Subtotal commercial real estate	2,770,574		2,653,154
Residential real estate
Home equity	181,672		182,671
Mortgages	1,341,663		1,290,911
Subtotal residential real estate	1,523,335		1,473,582
Consumer and other
Indirect	3,196		4,655
Consumer and other	65,033		67,396
Subtotal consumer and other	68,229		72,051
Leases	14,019		13,948
Total loans and leases	5,166,784		5,082,288
Less: unearned income and deferred costs and fees	(4,281)		(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	$	5,162,503	$	5,075,467
*SBA Paycheck Protection Program ("PPP")

The Company has adopted comprehensive lending policies, underwriting standards and loan review procedures. Management reviews these policies and procedures on a regular basis. The Company discussed its lending policies and underwriting guidelines for its various lending portfolios in Note 3 – "Loans and Leases" in the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. There have been no significant changes in these policies and guidelines since the date of that report. As such, these policies are reflective of new originations as well as those balances held at December 31, 2021. The Company’s Board of Directors approves the lending policies at least annually. The Company recognizes that exceptions to policy guidelines may occasionally occur and has established procedures for approving exceptions to these policy guidelines. Management has also implemented reporting systems to monitor loan origination, loan quality, concentrations of credit, loan delinquencies and nonperforming loans and potential problem loans.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments are due. Generally loans are placed on nonaccrual status if principal or interest payments become 90 days or more past due and/or management deems the collectability of the principal and/or interest to be in question as well as when required by regulatory agencies. When interest accrual is discontinued, all unpaid accrued interest is reversed. Payments received on loans on nonaccrual are generally applied to reduce the principal balance of the loan. Loans are generally returned to accrual status when all the principal and interest amounts due are brought current, the borrower has established a payment history, and future payments are reasonably assured. When management determines that the collection of principal in full is not probable, management will charge-off a partial amount or full amount of the loan balance. Management considers specific facts and circumstances relative to each individual credit in making such a determination. For residential and consumer loans, management uses specific regulatory guidance and thresholds for determining charge-offs.

The below tables are an age analysis of past due loans, segregated by class of loans, as of June 30, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	33	$	0	$	0	$	33	$	69,258	$	69,291
Commercial and industrial other	875		923		92		1,890		715,947		717,837
PPP loans	53		1		0		54		3,445		3,499
Subtotal commercial and industrial	961		924		92		1,977		788,650		790,627
Commercial real estate
Construction	0		0		0		0		208,695		208,695
Agriculture	219		0		0		219		199,870		200,089
Commercial real estate other	253		5,405		5,762		11,420		2,350,370		2,361,790
Subtotal commercial real estate	472		5,405		5,762		11,639		2,758,935		2,770,574
Residential real estate
Home equity	306		0		1,347		1,653		180,019		181,672
Mortgages	0		1,506		5,490		6,996		1,334,667		1,341,663
Subtotal residential real estate	306		1,506		6,837		8,649		1,514,686		1,523,335
Consumer and other
Indirect	64		23		52		139		3,057		3,196
Consumer and other	57		119		89		265		64,768		65,033
Subtotal consumer and other	121		142		141		404		67,825		68,229
Leases	0		0		0		0		14,019		14,019
Total loans and leases	1,860		7,977		12,832		22,669		5,144,115		5,166,784
Less: unearned income and deferred costs and fees	0		0		0		0		(4,281)		(4,281)
Total loans and leases, net of unearned income and deferred costs and fees	$	1,860	$	7,977	$	12,832	$	22,669	$	5,139,834	$	5,162,503

December 31, 2021
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	0	$	0	$	0	$	0	$	99,172	$	99,172
Commercial and industrial other	506		6		88		600		698,521		699,121
PPP loans	0		0		0		0		71,260		71,260
Subtotal commercial and industrial	506		6		88		600		868,953		869,553
Commercial real estate
Construction	0		0		0		0		178,582		178,582
Agriculture	121		0		0		121		195,852		195,973
Commercial real estate other	150		257		3,305		3,712		2,274,887		2,278,599
Subtotal commercial real estate	271		257		3,305		3,833		2,649,321		2,653,154
Residential real estate
Home equity	441		417		798		1,656		181,015		182,671
Mortgages	7		839		3,917		4,763		1,286,148		1,290,911
Subtotal residential real estate	448		1,256		4,715		6,419		1,467,163		1,473,582
Consumer and other
Indirect	77		86		2		165		4,490		4,655
Consumer and other	120		45		45		210		67,186		67,396
Subtotal consumer and other	197		131		47		375		71,676		72,051
Leases	0		0		0		0		13,948		13,948
Total loans and leases	1,422		1,650		8,155		11,227		5,071,061		5,082,288
Less: unearned income and deferred costs and fees	0		0		0		0		(6,821)		(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	$	1,422	$	1,650	$	8,155	$	11,227	$	5,064,240	$	5,075,467

The following tables present the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses. The below tables are an age analysis of nonaccrual loans segregated by class of loans, as of June 30, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Commercial and industrial other	$	92	$	293	$	62
Subtotal commercial and industrial	92		293		62
Commercial real estate
Construction	340		0		0
Commercial real estate other	11,354		12,545		0
Subtotal commercial real estate	11,694		12,545		0
Residential real estate
Home equity	419		2,506		0
Mortgages	980		9,030		0
Subtotal residential real estate	1,399		11,536		0
Consumer and other
Indirect	0		175		0
Consumer and other	0		116		0
Subtotal consumer and other	0		291		0
Total loans and leases	$	13,185	$	24,665	$	62

December 31, 2021
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Commercial and industrial other	$	502	$	533	$	0
Subtotal commercial and industrial	502		533		0
Commercial real estate
Construction	671		671		0
Agriculture	348		456		0
Commercial real estate other	12,483		12,766		0
Subtotal commercial real estate	13,502		13,893		0
Residential real estate
Home equity	380		2,459		0
Mortgages	716		8,719		0
Subtotal residential real estate	1,096		11,178		0
Consumer and other
Indirect	1		246		0
Consumer and other	0		183		0
Subtotal consumer and other	1		429		0
Total loans and leases	$	15,101	$	26,033	$	0

The Company recognized $0 of interest income on nonaccrual loans during the three and six months ended June 30, 2022 and 2021.

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Allowance for Credit Losses

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Allowance for Credit Losses

Allowance for Credit Losses

Management reviews the appropriateness of the allowance for credit losses ("allowance" or "ACL") on a regular basis. Management considers the accounting policy relating to the allowance to be a critical accounting policy, given the inherent uncertainty in evaluating the levels of the allowance required to cover credit losses in the portfolio and the material effect that assumptions could have on the Company’s results of operations. The Company has developed a methodology to measure the amount of estimated credit loss exposure inherent in the loan portfolio to assure that an appropriate allowance is maintained. The Company’s methodology is based upon guidance provided in SEC Staff Accounting Bulletin No. 119, Measurement of Credit Losses on Financial Instruments ("CECL"), and Financial Instruments - Credit Losses and ASC Topic 326, Financial Instruments - Credit Losses (ASU 2016-3).

The Company uses a discounted cash flow ("DCF") method to estimate expected credit losses for all loan segments excluding the leasing segment. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, recovery lag, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on internal historical data.

The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loans utilizing the DCF method, management utilizes forecasts of national unemployment and a one year percentage change in national gross domestic product as loss drivers in the model.

For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over eight quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics.

The combination of adjustments for credit expectations and timing expectations produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce a net present value of expected cash flows ("NPV"). An ACL is established for the difference between the NPV and amortized cost basis.

Since the methodology is based upon historical experience and trends, current conditions, and reasonable and supportable forecasts, as well as management’s judgment, factors may arise that result in different estimates. While management’s evaluation of the allowance as of June 30, 2022, considers the allowance to be appropriate, under certain conditions or assumptions, the Company would need to increase or decrease the allowance. In addition, various federal and State regulatory agencies, as part of their examination process, review the Company's allowance and may require the Company to recognize additions to the allowance based on their judgements and information available to them at the time of their examinations.

Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, and commercial letters of credit. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancellable, through a charge to credit loss expense for off-balance sheet credit exposures included in provision expense in the Company's consolidated statements of income.

The following table details activity in the allowance for credit losses on loans for the three and six months ended June 30, 2022 and 2021. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Three Months Ended June 30, 2022
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	7,027	$	22,982	$	10,447	$	1,588	$	82	$	42,126
Charge-offs	0		(23)		(51)		(82)		0		(156)
Recoveries	6		764		197		76		0		1,043
(Credit) provision for credit loss expense	781		(496)		489		9		(3)		780
Ending Balance	$	7,814	$	23,227	$	11,082	$	1,591	$	79	$	43,793

Three Months Ended June 30, 2021
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	7,750	$	30,467	$	9,470	$	1,583	$	69	$	49,339
Charge-offs	(2)		0		(48)		(60)		0		(110)
Recoveries	4		826		125		39		0		994
(Credit) provision for credit loss expense	(639)		(2,092)		(13)		28		(2)		(2,718)
Ending Balance	$	7,113	$	29,201	$	9,534	$	1,590	$	67	$	47,505

Six Months Ended June 30, 2022
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	6,335	$	24,813	$	10,139	$	1,492	$	64	$	42,843
Charge-offs	(23)		(50)		(51)		(278)		0		(402)
Recoveries	26		805		307		168		0		1,306
(Credit) provision for credit loss expense	1,476		(2,341)		687		209		15		46
Ending Balance	$	7,814	$	23,227	$	11,082	$	1,591	$	79	$	43,793

Six Months Ended June 30, 2021
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	9,239	$	30,546	$	10,257	$	1,562	$	65	$	51,669
Charge-offs	(118)		0		(46)		(152)		0		(316)
Recoveries	101		1,039		158		82		0		1,380
(Credit) provision for credit loss expense	(2,109)		(2,384)		(835)		98		2		(5,228)
Ending Balance	$	7,113	$	29,201	$	9,534	$	1,590	$	67	$	47,505

The following table details activity in the liabilities for off-balance sheet credit exposures for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30,
(In thousands)	2022		2021
Liabilities for off-balance sheet credit exposures at beginning of period	$	2,720	$	2,600
Provision for credit loss expense related to off-balance sheet credit exposures	76		(353)
Liabilities for off-balance sheet credit exposures at end of period	$	2,796	$	2,247

Six Months Ended June 30,
(In thousands)	2022		2021
Liabilities for off-balance sheet credit exposures at beginning of period	$	2,506	$	1,920
Provision for credit loss expense related to off-balance sheet credit exposures	290		327
Liabilities for off-balance sheet credit exposures at end of period	$	2,796	$	2,247

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:

(In thousands)	Real Estate		Business Assets		Other		Total		ACL Allocation
June 30, 2022
Commercial and Industrial	$	23	$	363	$	36	$	422	$	23
Commercial Real Estate	11,484		0		551		12,035		0
Commercial Real Estate - Agriculture	1,534		0		0		1,534		0
Total	$	13,041	$	363	$	587	$	13,991	$	23

(In thousands)	Real Estate		Business Assets		Other		Total		ACL Allocation
December 31, 2021
Commercial and Industrial	$	142	$	395	$	328	$	865	$	26
Commercial Real Estate	13,334		0		1,931		15,265		40
Residential Real Estate	32		0		0		32		1
Total	$	13,508	$	395	$	2,259	$	16,162	$	67

Loans are considered modified in a troubled debt restructuring ("TDR") when, due to a borrower’s financial difficulties, the Company makes concessions to the borrower that it would not otherwise consider. These modifications may include, among others, an extension for the term of the loan, and granting a period when interest-only payments can be made with the principal payments made over the remaining term of the loan or at maturity.

There were no new TDRs in the three and six months ended June 30, 2022 or 2021.

The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Commercial and Industrial - Other:
Pass	$	78,886	$	106,368	$	47,449	$	48,848	$	38,634	$	169,002	$	214,034	$	2,946	$	706,167
Special Mention	0		142		829		298		62		1,483		556		0		3,370
Substandard	0		127		522		66		484		641		6,460		0		8,300
Total Commercial and Industrial - Other	$	78,886	$	106,637	$	48,800	$	49,212	$	39,180	$	171,126	$	221,050	$	2,946	$	717,837
Commercial and Industrial - PPP:
Pass	$	0	$	3,086	$	413	$	0	$	0	$	0	$	0	$	0	$	3,499
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	$	0	$	3,086	$	413	$	0	$	0	$	0	$	0	$	0	$	3,499
Commercial and Industrial - Agriculture:
Pass	$	8,481	$	6,259	$	5,925	$	4,850	$	8,762	$	6,290	$	24,915	$	0	$	65,482
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		78		0		0		2,311		1,420		0		3,809
Total Commercial and Industrial - Agriculture	$	8,481	$	6,259	$	6,003	$	4,850	$	8,762	$	8,601	$	26,335	$	0	$	69,291
Commercial Real Estate
Pass	$	206,650	$	364,170	$	293,749	$	291,194	$	213,218	$	857,789	$	15,881	$	20,735	$	2,263,386
Special Mention	0		3,448		1,710		11,618		2,993		48,522		0		0		68,291
Substandard	0		113		0		3,602		2,408		23,635		355		0		30,113
Total Commercial Real Estate	$	206,650	$	367,731	$	295,459	$	306,414	$	218,619	$	929,946	$	16,236	$	20,735	$	2,361,790
Commercial Real Estate - Agriculture:
Pass	$	15,796	$	22,452	$	21,568	$	26,406	$	38,742	$	69,521	$	3,202	$	1,260	$	198,947
Special Mention	0		0		0		219		0		391		0		0		610
Substandard	0		0		0		0		38		494		0		0		532
Total Commercial Real Estate - Agriculture	$	15,796	$	22,452	$	21,568	$	26,625	$	38,780	$	70,406	$	3,202	$	1,260	$	200,089
Commercial Real Estate - Construction
Pass	$	5,636	$	64,721	$	67,810	$	26,733	$	9,751	$	14,156	$	19,189	$	699	$	208,695
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Total Commercial Real Estate - Construction	$	5,636	$	64,721	$	67,810	$	26,733	$	9,751	$	14,156	$	19,189	$	699	$	208,695

December 31, 2021
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Commercial and Industrial - Other:
Internal risk grade:
Pass	$	123,996	$	58,432	$	54,116	$	42,093	$	35,725	$	239,093	$	125,476	$	10,039	$	688,970
Special Mention	156		770		450		100		201		393		1,417		0		3,487
Substandard	179		584		47		575		0		637		4,642		0		6,664
Total Commercial and Industrial - Other	$	124,331	$	59,786	$	54,613	$	42,768	$	35,926	$	240,123	$	131,535	$	10,039	$	699,121
Commercial and Industrial - Agriculture:
Pass	$	8,573	$	6,782	$	5,700	$	10,136	$	6,867	$	3,186	$	53,145	$	595	$	94,984
Special Mention	0		0		0		23		0		0		0		0		23
Substandard	0		85		11		0		93		2,316		1,660		0		4,165
Total Commercial and Industrial - Agriculture	$	8,573	$	6,867	$	5,711	$	10,159	$	6,960	$	5,502	$	54,805	$	595	$	99,172
Commercial and Industrial - PPP:
Pass	$	71,260	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	71,260
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	$	71,260	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	71,260
Commercial Real Estate
Pass	$	325,874	$	271,680	$	249,266	$	201,992	$	212,991	$	810,713	$	44,264	$	43,225	$	2,160,005
Special Mention	0		1,763		11,772		3,217		2,167		61,723		358		0		81,000
Substandard	3,482		0		2,262		2,518		8,509		20,401		422		0		37,594
Total Commercial Real Estate	$	329,356	$	273,443	$	263,300	$	207,727	$	223,667	$	892,837	$	45,044	$	43,225	$	2,278,599
Commercial Real Estate - Agriculture:
Pass	$	23,151	$	21,856	$	28,943	$	41,064	$	23,195	$	50,809	$	1,949	$	2,850	$	193,817
Special Mention	0		479		0		0		0		350		35		0		864
Substandard	0		0		0		39		0		1,253		0		0		1,292
Total Commercial Real Estate - Agriculture	$	23,151	$	22,335	$	28,943	$	41,103	$	23,195	$	52,412	$	1,984	$	2,850	$	195,973
Commercial Real Estate - Construction
Pass	$	12,840	$	10,025	$	16,325	$	7,542	$	1,274	$	6,559	$	112,537	$	10,037	$	177,139
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		643		800		0		1,443
Total Commercial Real Estate - Construction	$	12,840	$	10,025	$	16,325	$	7,542	$	1,274	$	7,202	$	113,337	$	10,037	$	178,582

The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2022 and December 31, 2021, continued:

June 30, 2022
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Residential - Home Equity
Performing	$	1,049	$	1,166	$	697	$	1,117	$	887	$	4,060	$	169,371	$	819	$	179,166
Nonperforming	0		0		0		15		0		75		2,416		0		2,506
Total Residential - Home Equity	$	1,049	$	1,166	$	697	$	1,132	$	887	$	4,135	$	171,787	$	819	$	181,672
Residential - Mortgages
Performing	$	122,172	$	276,961	$	251,305	$	124,191	$	70,956	$	487,048	$	0	$	0	$	1,332,633
Nonperforming	0		0		246		608		1,112		7,064		0		0		9,030
Total Residential - Mortgages	$	122,172	$	276,961	$	251,551	$	124,799	$	72,068	$	494,112	$	0	$	0	$	1,341,663
Consumer - Direct
Performing	$	12,974	$	17,506	$	8,475	$	7,419	$	5,113	$	8,811	$	4,619	$	0	$	64,917
Nonperforming	0		0		3		23		77		10		3		$	0	116
Total Consumer - Direct	$	12,974	$	17,506	$	8,478	$	7,442	$	5,190	$	8,821	$	4,622	$	0	$	65,033
Consumer - Indirect
Performing	$	0	$	181	$	189	$	1,549	$	915	$	187	$	0	$	0	$	3,021
Nonperforming	0		0		0		129		37		9		0		0		175
Total Consumer - Indirect	$	0	$	181	$	189	$	1,678	$	952	$	196	$	0	$	0	$	3,196

December 31, 2021
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Residential - Home Equity
Performing	$	2,033	$	1,142	$	3,041	$	1,600	$	1,572	$	3,144	$	161,630	$	6,050	$	180,212
Nonperforming	0		0		16		0		0		604		1,839		0		2,459
Total Residential - Home Equity	$	2,033	$	1,142	$	3,057	$	1,600	$	1,572	$	3,748	$	163,469	$	6,050	$	182,671
Residential - Mortgages
Performing	$	324,967	$	282,202	$	162,574	$	97,778	$	124,221	$	275,133	$	14,112	$	1,205	$	1,282,192
Nonperforming	0		0		241		702		693		7,060		23		0		8,719
Total Residential - Mortgages	$	324,967	$	282,202	$	162,815	$	98,480	$	124,914	$	282,193	$	14,135	$	1,205	$	1,290,911
Consumer - Direct
Performing	$	20,653	$	10,735	$	9,397	$	5,542	$	4,849	$	10,602	$	5,435	$	0	$	67,213
Nonperforming	0		9		44		117		12		0		1		0		183
Total Consumer - Direct	$	20,653	$	10,744	$	9,441	$	5,659	$	4,861	$	10,602	$	5,436	$	0	$	67,396
Consumer - Indirect
Performing	$	1,809	$	854	$	812	$	506	$	362	$	66	$	0	$	0	$	4,409
Nonperforming	0		2		148		81		1		14		0		0		246
Total Consumer - Indirect	$	1,809	$	856	$	960	$	587	$	363	$	80	$	0	$	0	$	4,655

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Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Earnings per share in the table below, for the three and six month periods ended June 30, 2022 and 2021 are calculated under the two-class method as required by ASC Topic 260, Earnings Per Share. ASC 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company has issued restricted stock awards that contain such rights and are therefore considered participating securities. Basic earnings per common share are calculated by dividing net income allocable to common stock by the weighted average number of common shares, excluding participating securities, during the period. Diluted earnings per common share include the dilutive effect of participating securities.

	Three Months Ended
(In thousands, except share and per share data)	6/30/2022		6/30/2021
Basic
Net income available to common shareholders	$	20,869	$	22,831
Less: income attributable to unvested stock-based compensation awards	(67)		(164)
Net earnings allocated to common shareholders	20,802		22,667
Weighted average shares outstanding, including unvested stock-based compensation awards	14,524,975		14,886,687
Less: average unvested stock-based compensation awards	(207,560)		(231,913)
Weighted average shares outstanding - Basic	14,317,415		14,654,774
Diluted
Net earnings allocated to common shareholders	20,802		22,667
Weighted average shares outstanding - Basic	14,317,415		14,654,774
Plus: incremental shares from assumed conversion of stock-based compensation awards	70,186		82,961
Weighted average shares outstanding - Diluted	14,387,601		14,737,735
Basic EPS	$	1.45	$	1.55
Diluted EPS	$	1.45	$	1.54

Stock-based compensation awards representing 1,848 and 477 of common shares during the three months ended June 30, 2022 and 2021, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been anti-dilutive.

	Six Months Ended
(In thousands, except share and per share data)	6/30/2022		6/30/2021
Basic
Net income available to common shareholders	$	44,142	$	48,457
Less: income attributable to unvested stock-based compensation awards	(143)		(350)
Net earnings allocated to common shareholders	43,999		48,107
Weighted average shares outstanding, including unvested stock-based compensation awards	14,568,102		14,899,524
Less: unvested stock-based compensation awards	(209,633)		(234,003)
Weighted average shares outstanding - Basic	14,358,469		14,665,521
Diluted
Net earnings allocated to common shareholders	43,999		48,107
Weighted average shares outstanding - Basic	14,358,469		14,665,521
Plus: incremental shares from assumed conversion of stock-based compensation awards	74,183		82,055
Weighted average shares outstanding - Diluted	14,432,652		14,747,576
Basic EPS	$	3.06	$	3.28
Diluted EPS	$	3.05	$	3.26

Stock-based compensation awards representing approximately 6,113 and 8,187 of common shares during the six months ended June 30, 2022 and 2021, respectively were not included in the computations of diluted earnings per common share because the effect on those periods would have been anti-dilutive.

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Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss)

The following tables present reclassifications out of accumulated other comprehensive income (loss) for the three and six month periods ended June 30, 2022 and 2021:

	Three Months Ended June 30, 2022
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(57,544)	$	14,095	$	(43,449)
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	(57,544)		14,095		(43,449)
Employee benefit plans:
Amortization of net retirement plan actuarial gain	514		(125)		389
Amortization of net retirement plan prior service cost	53		(13)		40
Employee benefit plans	567		(138)		429
Other comprehensive (loss) income	$	(56,977)	$	13,957	$	(43,020)

	Three Months Ended June 30, 2021
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	11,244	$	(2,755)	$	8,489
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	11,244		(2,755)		8,489
Employee benefit plans:
Amortization of net retirement plan actuarial gain	712		(175)		537
Amortization of net retirement plan prior service cost	55		(13)		42
Employee benefit plans	767		(188)		579
Other comprehensive income (loss)	$	12,011	$	(2,943)	$	9,068

	Six Months Ended June 30, 2022
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(164,025)	$	40,171	$	(123,854)
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	(164,025)		40,171		(123,854)
Employee benefit plans:
Amortization of net retirement plan actuarial loss	1,129		(276)		853
Amortization of net retirement plan prior service cost	109		(27)		82
Employee benefit plans	1,238		(303)		935
Other comprehensive (loss) income	$	(162,787)	$	39,868	$	(122,919)

	Six Months Ended June 30, 2021
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(22,197)	$	5,440	$	(16,757)
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	(330)		81		(249)
Net unrealized gains/losses	(22,527)		5,521		(17,006)
Employee benefit plans:
Amortization of net retirement plan actuarial loss	1,476		(362)		1,114
Amortization of net retirement plan prior service cost	111		(27)		84
Employee benefit plans	1,587		(389)		1,198
Other comprehensive (loss) income	$	(20,940)	$	5,132	$	(15,808)

The following table presents the activity in our accumulated other comprehensive (loss) income for the periods indicated:

(In thousands)	Available-for- Sale Debt Securities		Employee Benefit Plans		Accumulated Other Comprehensive (Loss) Income
Balance at March 31, 2022	$	(94,965)	$	(40,884)	$	(135,849)
Other comprehensive (loss) income before reclassifications	(43,449)		0		(43,449)
Amounts reclassified from accumulated other comprehensive (loss) income	0		429		429
Net current-period other comprehensive (loss) income	(43,449)		429		(43,020)
Balance at June 30, 2022	$	(138,414)	$	(40,455)	$	(178,869)
Balance at January 1, 2022	$	(14,560)	$	(41,390)	$	(55,950)
Other comprehensive (loss) income before reclassifications	(123,854)		0		(123,854)
Amounts reclassified from accumulated other comprehensive (loss) income	0		935		935
Net current-period other comprehensive (loss) income	(123,854)		935		(122,919)
Balance at June 30, 2022	$	(138,414)	$	(40,455)	$	(178,869)

(In thousands)	Available-for- Sale Debit Securities		Employee Benefit Plans		Accumulated Other Comprehensive (Loss) Income
Balance at March 31, 2021	$	(4,886)	$	(52,064)	$	(56,950)
Other comprehensive income (loss) before reclassifications	8,489		0		8,489
Amounts reclassified from accumulated other comprehensive (loss) income	0		579		579
Net current-period other comprehensive income (loss)	8,489		579		9,068
Balance at June 30, 2021	$	3,603	$	(51,485)	$	(47,882)
Balance at January 1, 2021	$	20,609	$	(52,683)	$	(32,074)
Other comprehensive (loss) income before reclassifications	(16,757)		0		(16,757)
Amounts reclassified from accumulated other comprehensive (loss) income	(249)		1,198		949
Net current-period other comprehensive (loss) income	(17,006)		1,198		(15,808)
Balance at June 30, 2021	$	3,603	$	(51,485)	$	(47,882)

The following tables present the amounts reclassified out of each component of accumulated other comprehensive (loss) income for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30, 2022
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following 2
Net retirement plan actuarial loss	(514)		Other operating expense
Net retirement plan prior service cost	(53)		Other operating expense
	(567)		Total before tax
	138		Tax benefit
	$	(429)	Net of tax

Three Months Ended June 30, 2021
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(711)		Other operating expense
Net retirement plan prior service cost	(56)		Other operating expense
	(767)		Total before tax
	188		Tax benefit
	$	(579)	Net of tax

Six Months Ended June 30, 2022
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(1,129)		Other operating expense
Net retirement plan prior service cost	(109)		Other operating expense
	(1,238)		Total before tax
	303		Tax benefit
	$	(935)	Net of tax

Six Months Ended June 30, 2021
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	330	Net (loss) gain on securities transactions
	(81)		Tax expense
	249		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(1,475)		Other operating expense
Net retirement plan prior service cost	(111)		Other operating expense
	(1,586)		Total before tax
	388		Tax benefit
	$	(1,198)	Net of tax

1 Amounts in parentheses indicated debits in income statement.

2 The accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost (See Note 8 - "Employee Benefit Plan").

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Employee Benefit Plans

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The following tables set forth the amount of the net periodic benefit cost recognized by the Company for the Company’s pension plan, post-retirement plan (Life and Health), and supplemental employee retirement plans ("SERP") including the following components: service cost, interest cost, expected return on plan assets for the period, amortization of the unrecognized transitional obligation or transition asset, and the amounts of recognized gains and losses, prior service cost recognized, and gain or loss recognized due to settlement or curtailment.

Components of Net Periodic Benefit Cost

	Pension Benefits				Life and Health				SERP Benefits
	Three Months Ended				Three Months Ended				Three Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021		6/30/2022		6/30/2021
Service cost	$	0	$	0	$	43	$	42	$	(13)	$	55
Interest cost	529		327		59		36		206		147
Expected return on plan assets	(1,474)		(1,411)		0		0		0		0
Amortization of net retirement plan actuarial loss	285		397		46		82		183		233
Amortization of net retirement plan prior service (credit) cost	0		0		(15)		(15)		68		70
Net periodic benefit (income) cost	$	(660)	$	(687)	$	133	$	145	$	444	$	505

	Pension Benefits				Life and Health				SERP Benefits
	Six Months Ended				Six Months Ended				Six Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021		6/30/2022		6/30/2021
Service cost	$	0	$	0	$	87	$	93	$	39	$	115
Interest cost	992		814		111		90		407		346
Expected return on plan assets	(2,942)		(2,826)		0		0		0		0
Amortization of net retirement plan actuarial loss	608		780		98		156		423		540
Amortization of net retirement plan prior service cost (credit)	0		0		(30)		(30)		139		141
Net periodic benefit (income) cost	$	(1,342)	$	(1,232)	$	266	$	309	$	1,008	$	1,142

The service component of net periodic benefit cost for the Company's benefit plans is recorded as a part of salaries and wages in the consolidated statements of income. All other components are recorded as part of other operating expenses in the consolidated statements of income.

The Company realized approximately $934,560 and $1.2 million, net of tax, as amortization of amounts previously recognized in accumulated other comprehensive (loss) income, for the six months ended June 30, 2022 and 2021, respectively.

The Company is not required to contribute to the pension plan, but it may make voluntary contributions. The Company did not contribute to the pension plan in the first six months of 2022 and 2021.

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Other Income and Operating Expense

6 Months Ended

Jun. 30, 2022

Other Income and Expenses [Abstract]

Other Income and Operating Expense

Other Income and Operating Expense

Other income and operating expense totals are presented in the table below. Components of these totals exceeding 1% of the aggregate of total noninterest income and total noninterest expenses for any of the periods presented below are stated separately.

	Three Months Ended				Six Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021
Noninterest Income
Other service charges	$	669	$	710	$	1,296	$	1,379
Earnings from corporate owned life insurance	171		570		593		1,111
Net gains on the sales of loans originated for sale	53		153		57		582
Other income	348		232		771		567
Total other income	$	1,241	$	1,665	$	2,717	$	3,639
Noninterest Expenses
Marketing expense	$	1,456	$	1,132	$	2,513	$	1,627
Professional fees	1,719		1,533		3,325		3,427
Legal fees	498		221		708		441
Technology expense	3,690		2,977		7,373		5,905
Cardholder expense	1,280		875		2,422		1,662
Other expenses	4,386		3,992		8,708		8,293
Total other operating expense	$	13,029	$	10,730	$	25,049	$	21,355

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Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

As stated in Note 1 - "Summary of Significant Accounting Policies," in the 2021 Annual Report on Form 10-K, the Company adopted ASU No. 2014-09 "Revenue from Contracts with Customers" (ASC 606) and all subsequent ASUs that modified ASC 606, on January 1, 2018. ASC 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of ASC 606. ASC 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of ASC 606.

Insurance Commissions and Fees

Insurance commissions and fees from insurance product sales are typically earned upon the effective date of bound coverage, as no significant performance obligation remains after coverage is bound. Commission revenue on policies billed in installments is now accrued based upon the completion of the performance obligation creating a current asset for the unbilled revenue until such time as an invoice is generated, typically not to exceed twelve months. The impact of these changes was not significant, but it will result in slight variances from quarter to quarter. Contingent commissions are estimated based upon management’s expectations for the year with an appropriate constraint applied and accrued relative to the recognition of the corresponding core commissions.

Trust & Asset Management

Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.

Mutual Fund & Investment Income

Mutual fund and investment income consists of other recurring revenue streams such as commissions from sales of mutual funds and other investments, and investment advisory fees from the Company’s Strategic Asset Management Services (SAM) wealth management product. Commissions from the sale of mutual funds and other investments are recognized on the trade date, which is when the Company has satisfied its performance obligation. The Company also receives periodic service fees (i.e., trailers) from mutual fund companies typically based on a percentage of net asset value, recorded over time, usually monthly or quarterly, as net asset value is determined. Investment advisor fees from the wealth management product is earned over time and based on an annual percentage rate of the net asset value. The investment advisor fees are charged to the customer’s account in advance on the first month of the quarter, and the revenue is recognized over the following three-month period. The Company does engage a third party, LPL Financial, LLC (LPL), to satisfy part of this performance obligation, and therefore this income is reported net of any corresponding expenses paid to LPL.

Service Charges on Deposit Accounts

Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.

Card Services Income

Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as MasterCard. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. The Company’s performance obligation for fees and exchange are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Other

Other service charges include revenue from processing wire and ACH transfers, lock box service and safe deposit box rental. Payment on these revenue streams is received primarily through a direct charge to the customer’s account, immediately or in the following month, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time.

The following tables present noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC 606, for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended
(In thousands)	06/30/2022		06/30/2021
Noninterest Income
In-scope of Topic 606:
Commissions and Fees	$	7,872	$	7,488
Installment Billing	(46)		(52)
Refund of Commissions	10		31
Contract Liabilities/Deferred Revenue	(266)		(237)
Contingent Commissions	859		824
Subtotal Insurance Revenues	8,429		8,054
Trust and Asset Management	3,122		3,334
Mutual Fund & Investment Income	1,474		1,383
Subtotal Investment Service Income	4,596		4,717
Service Charges on Deposit Accounts	1,756		1,471
Card Services Income	2,959		2,951
Other	308		297
Noninterest Income (in-scope of ASC 606)	18,048		17,490
Noninterest Income (out-of-scope of ASC 606)	896		1,368
Total Noninterest Income	$	18,944	$	18,858

	Six Months Ended
(In thousands)	06/30/2022		06/30/2021
Noninterest Income
In-scope of Topic 606:
Commissions and Fees	$	15,836	$	15,171
Installment Billing	(2)		(17)
Refund of Commissions	(18)		11
Contract Liabilities/Deferred Revenue	(267)		(237)
Contingent Commissions	2,197		2,292
Subtotal Insurance Revenues	17,746		17,220
Trust and Asset Management	6,625		6,700
Mutual Fund & Investment Income	2,888		2,690
Subtotal Investment Service Income	9,513		9,390
Service Charges on Deposit Accounts	3,535		2,941
Card Services Income	5,502		5,334
Other	624		598
Noninterest Income (in-scope of ASC 606)	36,920		35,483
Noninterest Income (out-of-scope of ASC 606)	2,009		3,358
Total Noninterest Income	$	38,929	$	38,841

Contract Balances

A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration or before payment is due, which would result in contract receivables or assets, respectively. 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 for which payment is due from the customer. The Company’s noninterest revenue streams, excluding some insurance commissions and fees, are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Receivables primarily consist of amounts due for insurance and wealth management services performed for

which the Company's performance obligations have been fully satisfied. Receivables for the insurance and wealth management services segments amounted to $5.0 million and $2.5 million, respectively, at June 30, 2022, compared to $6.0 million and $2.3 million, respectively, at December 31, 2021. Included in those amounts are contract assets related to contingent income of $1.2 million and $3.0 million, respectively, at June 30, 2022 and December 31, 2021, and contract liabilities of $3.0 million and $1.7 million, respectively at June 30, 2022 and December 31, 2021.

Contract Acquisition Costs

The Company is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less.

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Financial Guarantees

6 Months Ended

Jun. 30, 2022

Guarantees [Abstract]

Financial Guarantees

Financial Guarantees

The Company currently does not issue any guarantees that would require liability recognition or disclosure, other than standby letters of credit. The Company extends standby letters of credit to its customers in the normal course of business. The standby letters of credit are generally short-term. As of June 30, 2022, the Company’s maximum potential obligation under standby letters of credit was $37.5 million compared to $39.8 million at December 31, 2021. Management uses the same credit policies to extend standby letters of credit that it uses for on-balance sheet lending decisions and may require collateral to support standby letters of credit based upon its evaluation of the counterparty. Management does not anticipate any significant losses as a result of these transactions, and has determined that the fair value of standby letters of credit is not significant.

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Segment and Related Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

The Company manages its operations through three reportable business segments in accordance with the standards set forth in FASB ASC 280, "Segment Reporting": (i) banking ("Banking"), (ii) insurance ("Tompkins Insurance") and (iii) wealth management ("Tompkins Financial Advisors"). The Company’s insurance services and wealth management services, other than trust services, are managed separately from the Banking segment.

Banking

Tompkins Community Bank has thirteen banking offices located in Ithaca, NY and surrounding communities; sixteen banking offices located in the Genesee Valley region of New York State as well as Monroe County; fourteen full-service banking offices located in the counties north of New York City; and twenty banking offices headquartered and operating in the areas surrounding southeastern Pennsylvania.

Insurance

The Company provides property and casualty insurance services and employee benefits consulting through Tompkins Insurance Agencies, Inc., a 100% wholly-owned subsidiary of the Company, headquartered in Batavia, New York. Tompkins Insurance is an independent insurance agency, representing many major insurance carriers and provides employee benefit consulting to employers in Western and Central New York and Southeastern Pennsylvania, assisting them with their medical, group life insurance and group disability insurance. Tompkins Insurance has five stand-alone offices in Western New York.

Wealth Management

The Wealth Management segment is generally organized under the Tompkins Financial Advisors brand. Tompkins Financial Advisors offers a comprehensive suite of financial services to customers, including trust and estate services, investment management and financial and insurance planning for individuals, corporate executives, small business owners and high net worth individuals. Tompkins Financial Advisors has offices in each of the Company’s regional markets.

Summarized financial information concerning the Company’s reportable segments and the reconciliation to the Company’s consolidated results is shown in the following table. Investment in subsidiaries is netted out of the presentations below. The "Intercompany" column identifies the intercompany activities of revenues, expenses and other assets between the banking, insurance and wealth management services segments. The Company accounts for intercompany fees and services at an estimated fair value according to regulatory requirements for the services provided. Intercompany items relate primarily to the use of human resources, information systems, accounting and marketing services provided by any of the banks and the holding company. All other accounting policies are the same as those described in the summary of significant accounting policies in the 2021 Annual Report on Form 10-K.

Three months ended June 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	60,953	$	1	$	0	$	(1)	$	60,953
Interest expense	2,692		0		0		(1)		2,691
Net interest income	58,261		1		0		0		58,262
Provision for credit loss expense	856		0		0		0		856
Noninterest income	6,329		8,573		4,598		(556)		18,944
Noninterest expense	39,395		6,812		3,469		(556)		49,120
Income before income tax expense	24,339		1,762		1,129		0		27,230
Income tax expense	5,465		494		370		0		6,329
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	18,874		1,268		759		0		20,901
Less: Net income attributable to noncontrolling interests	32		0		0		0		32
Net Income attributable to Tompkins Financial Corporation	$	18,842	$	1,268	$	759	$	0	$	20,869
Depreciation and amortization	$	2,515	$	44	$	36	$	0	$	2,595
Assets	7,786,614		47,222		26,915		(18,290)		7,842,461
Goodwill	64,500		19,866		8,081		0		92,447
Other intangibles, net	1,236		1,830		58		0		3,124
Net loans and leases	5,118,710		0		0		0		5,118,710
Deposits	6,786,754		0		(847)		(16,386)		6,769,521
Total Equity	563,994		34,860		25,464		0		624,318

Three months ended June 30, 2021
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	59,843	$	0	$	0	$	(8)	$	59,835
Interest expense	4,997		0		0		(8)		4,989
Net interest income	54,846		0		0		0		54,846
Credit for credit loss expense	(3,071)		0		0		0		(3,071)
Noninterest income	6,447		8,163		4,808		(560)		18,858
Noninterest expense	37,879		6,760		3,363		(560)		47,442
Income before income tax expense	26,485		1,403		1,445		0		29,333
Income tax expense	5,729		401		341		0		6,471
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	20,756		1,002		1,104		0		22,862
Less: Net income attributable to noncontrolling interests	31		0		0		0		31
Net Income attributable to Tompkins Financial Corporation	$	20,725	$	1,002	$	1,104	$	0	$	22,831
Depreciation and amortization	$	2,527	$	55	$	14	$	0	$	2,596
Assets	7,987,751		46,590		30,435		(76,568)		7,988,208
Goodwill	64,370		19,866		8,211		0		92,447
Other intangibles, net	1,994		2,201		79		0		4,274
Net loans and leases	5,127,624		0		0		0		5,127,624
Deposits	6,851,924		0		0		(14,924)		6,837,000
Total Equity	667,007		33,101		28,145		0		728,253

Six months ended June 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	120,129	$	2	$	0	$	(2)	$	120,129
Interest expense	5,255		0		0		(2)		5,253
Net interest income	114,874		2		0		0		114,876
Provision for credit loss expense	336		0		0		0		336
Noninterest income	12,522		18,007		9,532		(1,132)		38,929
Noninterest expense	76,584		13,314		7,193		(1,132)		95,959
Income before income tax expense	50,476		4,695		2,339		0		57,510
Income tax expense	11,630		1,310		365		0		13,305
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	38,846		3,385		1,974		0		44,205
Less: Net income attributable to noncontrolling interests	63		0		0		0		63
Net Income attributable to Tompkins Financial Corporation	$	38,783	$	3,385	$	1,974	$	0	$	44,142
Depreciation and amortization	$	5,093	$	88	$	64	$	0	$	5,245

Six months ended June 30, 2021
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	119,597	$	2	$	0	$	(9)	$	119,590
Interest expense	9,716		0		0		(9)		9,707
Net interest income	109,881		2		0		0		109,883
Provision for credit loss expense	(4,901)		0		0		0		(4,901)
Noninterest income	12,759		17,581		9,591		(1,090)		38,841
Noninterest expense	73,206		13,197		6,640		(1,090)		91,953
Income before income tax expense	54,335		4,386		2,951		0		61,672
Income tax expense	11,243		1,203		705		0		13,151
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	43,092		3,183		2,246		0		48,521
Less: Net income attributable to noncontrolling interests	64		0		0		0		64
Net Income attributable to Tompkins Financial Corporation	$	43,028	$	3,183	$	2,246	$	0	$	48,457
Depreciation and amortization	$	4,965	$	110	$	27	$	0	$	5,102

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Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

FASB ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Transfers between levels, when determined to be appropriate, are recognized at the end of each reporting period.

The three levels of the fair value hierarchy under ASC 820 are:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; 

Level 2 – Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of valuation inputs within the fair value hierarchy used to measure fair value:

Recurring Fair Value Measurements
June 30, 2022
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-sale debt securities
U.S. Treasuries	$	174,102	$	0	$	174,102	$	0
Obligations of U.S. Government sponsored entities	793,493		0		793,493		0
Obligations of U.S. states and political subdivisions	88,078		0		88,078		0
Mortgage-backed securities – residential, issued by:
U.S. Government agencies	59,114		0		59,114		0
U.S. Government sponsored entities	774,571		0		774,571		0
U.S. corporate debt securities	2,360		0		2,360		0
Total Available-for-sale debt securities	$	1,891,718	$	0	$	1,891,718	$	0
Equity securities, at fair value	$	818	$	0	$	0	$	818

Recurring Fair Value Measurements
December 31, 2021
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-sale debt securities
U.S. Treasuries	$	157,834	$	0	$	157,834	$	0
Obligations of U.S. Government sponsored entities	832,373		0		832,373		0
Obligations of U.S. states and political subdivisions	104,169		0		104,169		0
Mortgage-backed securities – residential, issued by:
U.S. Government agencies	77,157		0		77,157		0
U.S. Government sponsored entities	870,556		0		870,556		0
U.S. corporate debt securities	2,424		0		2,424		0
Total Available-for-sale debt securities	$	2,044,513	$	0	$	2,044,513	$	0
Equity securities, at fair value	$	902	$	0	$	0	$	902

Securities: Fair values for U.S. Treasury securities are based on quoted market prices. Fair values for obligations of U.S. government sponsored entities, mortgage-backed securities-residential, obligations of U.S. states and political subdivisions, and U.S. corporate debt securities are based on quoted market prices, where available, as provided by third party pricing vendors. If quoted market prices were not available, fair values are based on quoted market prices of comparable instruments in active markets and/or based upon a matrix pricing methodology, which uses comprehensive interest rate tables to determine market price, movement and yield relationships. These securities are reviewed periodically to determine if there are any events or changes in circumstances that would adversely affect their value.

The change in the fair value of equity securities valued using significant unobservable inputs (level 3), for the periods ended June 30, 2022 and December 31, 2021, was immaterial.

There were no transfers between Levels 1, 2 and 3 for the six months ended June 30, 2022.

The Company determines fair value for its available-for-sale debt securities using an independent bond pricing service for identical assets or very similar securities. The Company determines fair value for its equity securities based on the underlying equity fund’s pricing and valuation procedures which consider recent sales price, market quotations from a pricing service, or market quotes from an independent broker-dealer. The Company has reviewed the pricing sources, including methodologies used, and finds them to be fairly stated.

Certain assets are measured at fair value on a nonrecurring basis. For the Company, these include loans held for sale, individually evaluated loans, and other real estate owned ("OREO"). For the three and six months ended June 30, 2022, certain individually evaluated loans were remeasured and reported at fair value through a specific valuation allowance and/or partial charge-offs for credit losses based upon the fair value of the underlying collateral. Collateral values are estimated using Level 3 inputs based upon customized discounting criteria. In addition to collateral dependent evaluated loans, certain other real estate owned were remeasured and reported at fair value based upon the fair value of the underlying collateral. The fair values of other real estate owned are estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria. In general, the fair values of other real estate owned are based upon appraisals, with discounts made to reflect estimated costs to sell the real estate. Upon initial recognition, fair value write-downs are taken through a charge-off to the allowance for credit losses. Subsequent fair value write-downs on other real estate owned are reported in other noninterest expense.

Three months ended June 30, 2022
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2022		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended 06/30/2022
Individually evaluated loans	$	814	$	0	$	0	$	814	$	59
Other real estate owned	33		0		33		0		0

Three months ended June 30, 2021
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2021		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended 06/30/2021
Individually evaluated loans	$	8,922	$	0	$	8,922	$	0	$	0

Six months ended June 30, 2022
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2022		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Six months ended 06/30/2022
Individually evaluated loans	$	1,320	$	0	$	0	$	1,320	$	59
Other real estate owned	33		0		33		0		22

Six months ended June 30, 2021
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2021		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Six months ended 06/30/2021
Individually evaluated loans	$	31,619	$	0	$	31,619	$	0	$	0

The fair value estimates, methods and assumptions set forth below for the Company's financial instruments, including those financial instruments carried at cost, are made solely to comply with disclosures required by U.S. GAAP and should be read in conjunction with the financial statements and notes included in this Report.

For loans where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For real estate loans, fair value of the loan’s collateral is determined by third party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. 

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments at June 30, 2022 and December 31, 2021. The carrying amounts shown in the table are included in the Consolidated Statements of Condition under the indicated captions.

Estimated Fair Value of Financial Instruments
June 30, 2022
(In thousands)	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	80,392	$	80,392	$	80,392	$	0	$	0
Securities - held-to-maturity	312,315		274,660		0		274,660		0
FHLB and other stock	17,913		17,913		0		17,913		0
Accrued interest receivable	22,420		22,420		0		22,420		0
Loans/leases, net1	5,118,710		4,958,348		0		0		4,958,348
Financial Liabilities:
Time deposits	$	594,853	$	585,487	$	0	$	585,487	$	0
Other deposits	6,174,668		6,174,668		0		6,174,668		0
Fed funds purchased and securities sold
under agreements to repurchase	50,075		50,075		0		50,075		0
Other borrowings	295,600		294,234		0		294,234		0
Accrued interest payable	815		815		0		815		0

Estimated Fair Value of Financial Instruments
December 31, 2021
(In thousands)	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	63,107	$	63,107	$	63,107	$	0	$	0
FHLB and other stock	10,996		10,996		0		10,996		0
Accrued interest receivable	22,597		22,597		0		22,597		0
Loans/leases, net1	5,032,624		5,028,734		0		0		5,028,734
Financial Liabilities:
Time deposits	$	639,674	$	641,517	$	0	$	641,517	$	0
Other deposits	6,151,761		6,151,761		0		6,151,761		0
Fed funds purchased and securities
sold under agreements to repurchase	66,787		66,787		0		66,787		0
Other borrowings	124,000		125,700		0		125,700		0
Accrued interest payable	901		901		0		901		0

1 Lease receivables, although excluded from the scope of ASC Topic 825, are included in the estimated fair value amounts at their carrying value.

The following methods and assumptions were used in estimating fair value disclosures for financial instruments:

Cash and Cash Equivalents: The carrying amounts reported in the Consolidated Statements of Condition for cash, noninterest-bearing deposits, money market funds, and Federal funds sold approximate the fair value of those assets.

FHLB Stock: The carrying amount of FHLB stock approximates fair value. If the stock is redeemed, the Company will receive an amount equal to the par value of the stock. For miscellaneous equity securities, carrying value is cost.

Loans and Leases: Fair value for loans are calculated using an exit price notion. The Company's valuation methodology takes into account factors such as estimated cash flows, including contractual cash flow and assumptions for prepayments; liquidity risk; and credit risk. The fair values of residential loans were estimated using discounted cash flow analyses, based upon available market benchmarks for rates and prepayment assumptions. The fair values of commercial and consumer loans were estimated using discounted cash flow analyses, based upon interest rates currently offered for loans and leases with similar terms and credit quality. The fair values of loans held for sale were determined based upon contractual prices for loans with similar characteristics.

Accrued Interest Receivable and Accrued Interest Payable: The carrying amount of these short term instruments approximate fair value.

Deposits: The fair values disclosed for noninterest bearing accounts and accounts with no stated maturities are equal to the amount payable on demand at the reporting date. The fair value of time deposits is based upon discounted cash flow analyses using rates offered for FHLB advances, which is the Company’s primary alternative source of funds.

Other borrowings: The fair value of other borrowings is based upon discounted cash flow analyses using current rates offered

for FHLB advances, with similar terms.

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the

amount, sources, and duration of its assets and liabilities. The Company’s existing credit derivatives result from participation in loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities.

Non-designated Hedges

The Company’s existing credit derivatives result from participation in or out of interest rate swaps provided by or to external lenders as part of loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans.

Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of condition as of June 30, 2022 and December 31, 2021. The Company began entering into derivative transactions in the second quarter of 2022.

Derivative Liabilities
	June 30, 2022
	Notional		Balance Sheet	Fair
(In thousands)	Amount		Location	Value
Derivatives not designated as hedging instruments
Interest Rate Products	$	0	Other Liabilities	$	0
Other Contracts	7,499		Other Liabilities	37
Total derivatives not designated as hedging instruments				$	37

Tabular Disclosure of the Effect of Derivatives Not Designated as Hedging Instruments on the Income Statement

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the six months ended June 30, 2022:

Effect of Derivatives Not Designated as Hedging Instruments on the Statement of Financial Performance
Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
(In thousands)		June 30, 2022
Interest Rate Products	Other income / (expense)	$	0
Other Contracts	Other income / (expense)	41
Total		$	41

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Securities (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of available-for-sale securities

The following tables summarize available-for-sale debt securities held by the Company at June 30, 2022 and December 31, 2021:

	Available-for-Sale Debt Securities
June 30, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	191,051	$	0	$	16,949	$	174,102
Obligations of U.S. Government sponsored entities	863,235		36		69,778		793,493
Obligations of U.S. states and political subdivisions	95,661		54		7,637		88,078
Mortgage-backed securities – residential, issued by
U.S. Government agencies	63,185		38		4,109		59,114
U.S. Government sponsored entities	859,388		18		84,835		774,571
U.S. corporate debt securities	2,500		0		140		2,360
Total available-for-sale debt securities	$	2,075,020	$	146	$	183,448	$	1,891,718

	Available-for-Sale Debt Securities
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	160,291	$	85	$	2,542	$	157,834
Obligations of U.S. Government sponsored entities	843,218		4,527		15,372		832,373
Obligations of U.S. states and political subdivisions	102,177		2,092		100		104,169
Mortgage-backed securities – residential, issued by
U.S. Government agencies	76,502		1,187		532		77,157
U.S. Government sponsored entities	879,102		5,735		14,281		870,556
U.S. corporate debt securities	2,500		0		76		2,424
Total available-for-sale debt securities	$	2,063,790	$	13,626	$	32,903	$	2,044,513

Schedule of held-to-maturity securities

The following tables summarize held-to-maturity debt securities held by the Company at June 30, 2022 and December 31, 2021:

	Held-to-Maturity Securities
June 30, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	86,582	$	0	$	9,237	$	77,345
Obligations of U.S. Government sponsored entities	225,733		0		28,418		197,315
Total held-to-maturity debt securities	$	312,315	$	0	$	37,655	$	274,660

	Held-to-Maturity Securities
December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
(In thousands)
U.S. Treasuries	$	86,689	$	279	$	600	$	86,368
Obligations of U.S. Government sponsored entities	197,320		389		1,789		195,920
Total held-to-maturity debt securities	$	284,009	$	668	$	2,389	$	282,288

Schedule of available-for-sale securities with unrealized losses

The following table summarizes available-for-sale debt securities that had unrealized losses at June 30, 2022, and December 31, 2021:

June 30, 2022	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	169,550	$	16,547	$	4,552	$	402	$	174,102	$	16,949
Obligations of U.S. Government sponsored entities	353,414		23,720		411,422		46,058		764,836		69,778
Obligations of U.S. states and political subdivisions	71,476		6,901		3,123		736		74,599		7,637
Mortgage-backed securities – residential, issued by
U.S. Government agencies	36,509		1,299		21,389		2,810		57,898		4,109
U.S. Government sponsored entities	520,389		35,937		250,441		48,898		770,830		84,835
U.S. corporate debt securities	0		0		2,360		140		2,360		140
Total available-for-sale debt securities	$	1,151,338	$	84,404	$	693,287	$	99,044	$	1,844,625	$	183,448

December 31, 2021	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	147,810	$	2,542	$	0	$	0	$	147,810	$	2,542
Obligations of U.S. Government sponsored entities	362,895		6,694		289,210		8,678		652,105		15,372
Obligations of U.S. states and political subdivisions	9,700		85		1,283		15		10,983		100
Mortgage-backed securities – residential, issued by
U.S. Government agencies	22,074		160		16,846		372		38,920		532
U.S. Government sponsored entities	553,351		11,440		84,537		2,841		637,888		14,281
U.S. corporate debt securities	0		0		2,424		76		2,424		76
Total available-for-sale debt securities	$	1,095,830	$	20,921	$	394,300	$	11,982	$	1,490,130	$	32,903

Schedule held-to-maturity securities with unrealized losses

The following table summarizes held-to-maturity debt securities that had unrealized losses at June 30, 2022 and December 31, 2021:

June 30, 2022	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	77,345	$	9,237	$	0	$	0	$	77,345	$	9,237
Obligations of U.S. Government sponsored entities	197,315		28,418		$	0	$	0	$	197,315	28,418
Total held-to-maturity debt securities	$	274,660	$	37,655	$	0	$	0	$	274,660	$	37,655

December 31, 2021	Less than 12 Months				12 Months or Longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	35,280	$	600	$	0	$	0	$	35,280	$	600
Obligations of U.S. Government sponsored entities	84,592		1,789		0		0		84,592		1,789
Total held-to-maturity debt securities	$	119,872	$	2,389	$	0	$	0	$	119,872	$	2,389

Schedule of amortized cost and estimated fair value of debt securities by contractual maturity

June 30, 2022
(In thousands)	Amortized Cost		Fair Value
Available-for-sale debt securities:
Due in one year or less	$	61,909	$	61,879
Due after one year through five years	534,330		503,095
Due after five years through ten years	505,724		451,324
Due after ten years	50,484		41,735
Total	1,152,447		1,058,033
Mortgage-backed securities	922,573		833,685
Total available-for-sale debt securities	$	2,075,020	$	1,891,718

December 31, 2021
(In thousands)	Amortized Cost		Fair Value
Available-for-sale debt securities:
Due in one year or less	$	77,159	$	77,892
Due after one year through five years	474,537		471,776
Due after five years through ten years	501,748		492,573
Due after ten years	54,742		54,559
Total	1,108,186		1,096,800
Mortgage-backed securities	955,604		947,713
Total available-for-sale debt securities	$	2,063,790	$	2,044,513

June 30, 2022
(In thousands)	Amortized Cost		Fair Value
Held-to-maturity debt securities:
Due after five years through ten years	$	312,315	$	274,660
Total held-to-maturity debt securities	$	312,315	$	274,660

December 31, 2021
(In thousands)	Amortized Cost		Fair Value
Held-to-maturity debt securities:
Due after five years through ten years	$	284,009	$	282,288
Total held-to-maturity debt securities	$	284,009	$	282,288

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Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Schedule of loans and leases

Loans and leases at June 30, 2022 and December 31, 2021 were as follows:

(In thousands)	06/30/2022		12/31/2021
Commercial and industrial
Agriculture	$	69,291	$	99,172
Commercial and industrial other	717,837		699,121
PPP loans*	3,499		71,260
Subtotal commercial and industrial	790,627		869,553
Commercial real estate
Construction	208,695		178,582
Agriculture	200,089		195,973
Commercial real estate other	2,361,790		2,278,599
Subtotal commercial real estate	2,770,574		2,653,154
Residential real estate
Home equity	181,672		182,671
Mortgages	1,341,663		1,290,911
Subtotal residential real estate	1,523,335		1,473,582
Consumer and other
Indirect	3,196		4,655
Consumer and other	65,033		67,396
Subtotal consumer and other	68,229		72,051
Leases	14,019		13,948
Total loans and leases	5,166,784		5,082,288
Less: unearned income and deferred costs and fees	(4,281)		(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	$	5,162,503	$	5,075,467
*SBA Paycheck Protection Program ("PPP")

Schedule of age analysis of past due loans

The below tables are an age analysis of past due loans, segregated by class of loans, as of June 30, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	33	$	0	$	0	$	33	$	69,258	$	69,291
Commercial and industrial other	875		923		92		1,890		715,947		717,837
PPP loans	53		1		0		54		3,445		3,499
Subtotal commercial and industrial	961		924		92		1,977		788,650		790,627
Commercial real estate
Construction	0		0		0		0		208,695		208,695
Agriculture	219		0		0		219		199,870		200,089
Commercial real estate other	253		5,405		5,762		11,420		2,350,370		2,361,790
Subtotal commercial real estate	472		5,405		5,762		11,639		2,758,935		2,770,574
Residential real estate
Home equity	306		0		1,347		1,653		180,019		181,672
Mortgages	0		1,506		5,490		6,996		1,334,667		1,341,663
Subtotal residential real estate	306		1,506		6,837		8,649		1,514,686		1,523,335
Consumer and other
Indirect	64		23		52		139		3,057		3,196
Consumer and other	57		119		89		265		64,768		65,033
Subtotal consumer and other	121		142		141		404		67,825		68,229
Leases	0		0		0		0		14,019		14,019
Total loans and leases	1,860		7,977		12,832		22,669		5,144,115		5,166,784
Less: unearned income and deferred costs and fees	0		0		0		0		(4,281)		(4,281)
Total loans and leases, net of unearned income and deferred costs and fees	$	1,860	$	7,977	$	12,832	$	22,669	$	5,139,834	$	5,162,503

December 31, 2021
(In thousands)	30-59 Days		60-89 Days		90 Days or More		Total Past Due		Current Loans		Total Loans
Loans and Leases
Commercial and industrial
Agriculture	$	0	$	0	$	0	$	0	$	99,172	$	99,172
Commercial and industrial other	506		6		88		600		698,521		699,121
PPP loans	0		0		0		0		71,260		71,260
Subtotal commercial and industrial	506		6		88		600		868,953		869,553
Commercial real estate
Construction	0		0		0		0		178,582		178,582
Agriculture	121		0		0		121		195,852		195,973
Commercial real estate other	150		257		3,305		3,712		2,274,887		2,278,599
Subtotal commercial real estate	271		257		3,305		3,833		2,649,321		2,653,154
Residential real estate
Home equity	441		417		798		1,656		181,015		182,671
Mortgages	7		839		3,917		4,763		1,286,148		1,290,911
Subtotal residential real estate	448		1,256		4,715		6,419		1,467,163		1,473,582
Consumer and other
Indirect	77		86		2		165		4,490		4,655
Consumer and other	120		45		45		210		67,186		67,396
Subtotal consumer and other	197		131		47		375		71,676		72,051
Leases	0		0		0		0		13,948		13,948
Total loans and leases	1,422		1,650		8,155		11,227		5,071,061		5,082,288
Less: unearned income and deferred costs and fees	0		0		0		0		(6,821)		(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	$	1,422	$	1,650	$	8,155	$	11,227	$	5,064,240	$	5,075,467

Schedule of loans on nonaccrual status

The following tables present the amortized cost basis of loans on nonaccrual status and the amortized cost basis of loans on nonaccrual status for which there was no related allowance for credit losses. The below tables are an age analysis of nonaccrual loans segregated by class of loans, as of June 30, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Commercial and industrial other	$	92	$	293	$	62
Subtotal commercial and industrial	92		293		62
Commercial real estate
Construction	340		0		0
Commercial real estate other	11,354		12,545		0
Subtotal commercial real estate	11,694		12,545		0
Residential real estate
Home equity	419		2,506		0
Mortgages	980		9,030		0
Subtotal residential real estate	1,399		11,536		0
Consumer and other
Indirect	0		175		0
Consumer and other	0		116		0
Subtotal consumer and other	0		291		0
Total loans and leases	$	13,185	$	24,665	$	62

December 31, 2021
(In thousands)	Nonaccrual Loans and Leases with no ACL		Nonaccrual Loans and Leases		Loans and Leases Past Due Over 89 Days and Accruing
Loans and Leases
Commercial and industrial
Commercial and industrial other	$	502	$	533	$	0
Subtotal commercial and industrial	502		533		0
Commercial real estate
Construction	671		671		0
Agriculture	348		456		0
Commercial real estate other	12,483		12,766		0
Subtotal commercial real estate	13,502		13,893		0
Residential real estate
Home equity	380		2,459		0
Mortgages	716		8,719		0
Subtotal residential real estate	1,096		11,178		0
Consumer and other
Indirect	1		246		0
Consumer and other	0		183		0
Subtotal consumer and other	1		429		0
Total loans and leases	$	15,101	$	26,033	$	0

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Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Schedule of allowance for loan and lease losses segregated by originated and acquired loan and lease portfolios and by portfolio segment

The following table details activity in the allowance for credit losses on loans for the three and six months ended June 30, 2022 and 2021. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

Three Months Ended June 30, 2022
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	7,027	$	22,982	$	10,447	$	1,588	$	82	$	42,126
Charge-offs	0		(23)		(51)		(82)		0		(156)
Recoveries	6		764		197		76		0		1,043
(Credit) provision for credit loss expense	781		(496)		489		9		(3)		780
Ending Balance	$	7,814	$	23,227	$	11,082	$	1,591	$	79	$	43,793

Three Months Ended June 30, 2021
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	7,750	$	30,467	$	9,470	$	1,583	$	69	$	49,339
Charge-offs	(2)		0		(48)		(60)		0		(110)
Recoveries	4		826		125		39		0		994
(Credit) provision for credit loss expense	(639)		(2,092)		(13)		28		(2)		(2,718)
Ending Balance	$	7,113	$	29,201	$	9,534	$	1,590	$	67	$	47,505

Six Months Ended June 30, 2022
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	6,335	$	24,813	$	10,139	$	1,492	$	64	$	42,843
Charge-offs	(23)		(50)		(51)		(278)		0		(402)
Recoveries	26		805		307		168		0		1,306
(Credit) provision for credit loss expense	1,476		(2,341)		687		209		15		46
Ending Balance	$	7,814	$	23,227	$	11,082	$	1,591	$	79	$	43,793

Six Months Ended June 30, 2021
(In thousands)	Commercial & Industrial		Commercial Real Estate		Residential Real Estate		Consumer and Other		Finance Leases		Total
Allowance for credit losses:
Beginning balance	$	9,239	$	30,546	$	10,257	$	1,562	$	65	$	51,669
Charge-offs	(118)		0		(46)		(152)		0		(316)
Recoveries	101		1,039		158		82		0		1,380
(Credit) provision for credit loss expense	(2,109)		(2,384)		(835)		98		2		(5,228)
Ending Balance	$	7,113	$	29,201	$	9,534	$	1,590	$	67	$	47,505

The following table details activity in the liabilities for off-balance sheet credit exposures for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30,
(In thousands)	2022		2021
Liabilities for off-balance sheet credit exposures at beginning of period	$	2,720	$	2,600
Provision for credit loss expense related to off-balance sheet credit exposures	76		(353)
Liabilities for off-balance sheet credit exposures at end of period	$	2,796	$	2,247

Six Months Ended June 30,
(In thousands)	2022		2021
Liabilities for off-balance sheet credit exposures at beginning of period	$	2,506	$	1,920
Provision for credit loss expense related to off-balance sheet credit exposures	290		327
Liabilities for off-balance sheet credit exposures at end of period	$	2,796	$	2,247

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:

(In thousands)	Real Estate		Business Assets		Other		Total		ACL Allocation
June 30, 2022
Commercial and Industrial	$	23	$	363	$	36	$	422	$	23
Commercial Real Estate	11,484		0		551		12,035		0
Commercial Real Estate - Agriculture	1,534		0		0		1,534		0
Total	$	13,041	$	363	$	587	$	13,991	$	23

(In thousands)	Real Estate		Business Assets		Other		Total		ACL Allocation
December 31, 2021
Commercial and Industrial	$	142	$	395	$	328	$	865	$	26
Commercial Real Estate	13,334		0		1,931		15,265		40
Residential Real Estate	32		0		0		32		1
Total	$	13,508	$	395	$	2,259	$	16,162	$	67

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, 2022 and December 31, 2021:

June 30, 2022
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Commercial and Industrial - Other:
Pass	$	78,886	$	106,368	$	47,449	$	48,848	$	38,634	$	169,002	$	214,034	$	2,946	$	706,167
Special Mention	0		142		829		298		62		1,483		556		0		3,370
Substandard	0		127		522		66		484		641		6,460		0		8,300
Total Commercial and Industrial - Other	$	78,886	$	106,637	$	48,800	$	49,212	$	39,180	$	171,126	$	221,050	$	2,946	$	717,837
Commercial and Industrial - PPP:
Pass	$	0	$	3,086	$	413	$	0	$	0	$	0	$	0	$	0	$	3,499
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	$	0	$	3,086	$	413	$	0	$	0	$	0	$	0	$	0	$	3,499
Commercial and Industrial - Agriculture:
Pass	$	8,481	$	6,259	$	5,925	$	4,850	$	8,762	$	6,290	$	24,915	$	0	$	65,482
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		78		0		0		2,311		1,420		0		3,809
Total Commercial and Industrial - Agriculture	$	8,481	$	6,259	$	6,003	$	4,850	$	8,762	$	8,601	$	26,335	$	0	$	69,291
Commercial Real Estate
Pass	$	206,650	$	364,170	$	293,749	$	291,194	$	213,218	$	857,789	$	15,881	$	20,735	$	2,263,386
Special Mention	0		3,448		1,710		11,618		2,993		48,522		0		0		68,291
Substandard	0		113		0		3,602		2,408		23,635		355		0		30,113
Total Commercial Real Estate	$	206,650	$	367,731	$	295,459	$	306,414	$	218,619	$	929,946	$	16,236	$	20,735	$	2,361,790
Commercial Real Estate - Agriculture:
Pass	$	15,796	$	22,452	$	21,568	$	26,406	$	38,742	$	69,521	$	3,202	$	1,260	$	198,947
Special Mention	0		0		0		219		0		391		0		0		610
Substandard	0		0		0		0		38		494		0		0		532
Total Commercial Real Estate - Agriculture	$	15,796	$	22,452	$	21,568	$	26,625	$	38,780	$	70,406	$	3,202	$	1,260	$	200,089
Commercial Real Estate - Construction
Pass	$	5,636	$	64,721	$	67,810	$	26,733	$	9,751	$	14,156	$	19,189	$	699	$	208,695
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		0		0		0		0
Total Commercial Real Estate - Construction	$	5,636	$	64,721	$	67,810	$	26,733	$	9,751	$	14,156	$	19,189	$	699	$	208,695

December 31, 2021
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Commercial and Industrial - Other:
Internal risk grade:
Pass	$	123,996	$	58,432	$	54,116	$	42,093	$	35,725	$	239,093	$	125,476	$	10,039	$	688,970
Special Mention	156		770		450		100		201		393		1,417		0		3,487
Substandard	179		584		47		575		0		637		4,642		0		6,664
Total Commercial and Industrial - Other	$	124,331	$	59,786	$	54,613	$	42,768	$	35,926	$	240,123	$	131,535	$	10,039	$	699,121
Commercial and Industrial - Agriculture:
Pass	$	8,573	$	6,782	$	5,700	$	10,136	$	6,867	$	3,186	$	53,145	$	595	$	94,984
Special Mention	0		0		0		23		0		0		0		0		23
Substandard	0		85		11		0		93		2,316		1,660		0		4,165
Total Commercial and Industrial - Agriculture	$	8,573	$	6,867	$	5,711	$	10,159	$	6,960	$	5,502	$	54,805	$	595	$	99,172
Commercial and Industrial - PPP:
Pass	$	71,260	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	71,260
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	$	71,260	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	71,260
Commercial Real Estate
Pass	$	325,874	$	271,680	$	249,266	$	201,992	$	212,991	$	810,713	$	44,264	$	43,225	$	2,160,005
Special Mention	0		1,763		11,772		3,217		2,167		61,723		358		0		81,000
Substandard	3,482		0		2,262		2,518		8,509		20,401		422		0		37,594
Total Commercial Real Estate	$	329,356	$	273,443	$	263,300	$	207,727	$	223,667	$	892,837	$	45,044	$	43,225	$	2,278,599
Commercial Real Estate - Agriculture:
Pass	$	23,151	$	21,856	$	28,943	$	41,064	$	23,195	$	50,809	$	1,949	$	2,850	$	193,817
Special Mention	0		479		0		0		0		350		35		0		864
Substandard	0		0		0		39		0		1,253		0		0		1,292
Total Commercial Real Estate - Agriculture	$	23,151	$	22,335	$	28,943	$	41,103	$	23,195	$	52,412	$	1,984	$	2,850	$	195,973
Commercial Real Estate - Construction
Pass	$	12,840	$	10,025	$	16,325	$	7,542	$	1,274	$	6,559	$	112,537	$	10,037	$	177,139
Special Mention	0		0		0		0		0		0		0		0		0
Substandard	0		0		0		0		0		643		800		0		1,443
Total Commercial Real Estate - Construction	$	12,840	$	10,025	$	16,325	$	7,542	$	1,274	$	7,202	$	113,337	$	10,037	$	178,582

The following table presents credit quality indicators by total loans on an amortized cost basis by origination year as of June 30, 2022 and December 31, 2021, continued:

June 30, 2022
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Residential - Home Equity
Performing	$	1,049	$	1,166	$	697	$	1,117	$	887	$	4,060	$	169,371	$	819	$	179,166
Nonperforming	0		0		0		15		0		75		2,416		0		2,506
Total Residential - Home Equity	$	1,049	$	1,166	$	697	$	1,132	$	887	$	4,135	$	171,787	$	819	$	181,672
Residential - Mortgages
Performing	$	122,172	$	276,961	$	251,305	$	124,191	$	70,956	$	487,048	$	0	$	0	$	1,332,633
Nonperforming	0		0		246		608		1,112		7,064		0		0		9,030
Total Residential - Mortgages	$	122,172	$	276,961	$	251,551	$	124,799	$	72,068	$	494,112	$	0	$	0	$	1,341,663
Consumer - Direct
Performing	$	12,974	$	17,506	$	8,475	$	7,419	$	5,113	$	8,811	$	4,619	$	0	$	64,917
Nonperforming	0		0		3		23		77		10		3		$	0	116
Total Consumer - Direct	$	12,974	$	17,506	$	8,478	$	7,442	$	5,190	$	8,821	$	4,622	$	0	$	65,033
Consumer - Indirect
Performing	$	0	$	181	$	189	$	1,549	$	915	$	187	$	0	$	0	$	3,021
Nonperforming	0		0		0		129		37		9		0		0		175
Total Consumer - Indirect	$	0	$	181	$	189	$	1,678	$	952	$	196	$	0	$	0	$	3,196

December 31, 2021
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total Loans
Residential - Home Equity
Performing	$	2,033	$	1,142	$	3,041	$	1,600	$	1,572	$	3,144	$	161,630	$	6,050	$	180,212
Nonperforming	0		0		16		0		0		604		1,839		0		2,459
Total Residential - Home Equity	$	2,033	$	1,142	$	3,057	$	1,600	$	1,572	$	3,748	$	163,469	$	6,050	$	182,671
Residential - Mortgages
Performing	$	324,967	$	282,202	$	162,574	$	97,778	$	124,221	$	275,133	$	14,112	$	1,205	$	1,282,192
Nonperforming	0		0		241		702		693		7,060		23		0		8,719
Total Residential - Mortgages	$	324,967	$	282,202	$	162,815	$	98,480	$	124,914	$	282,193	$	14,135	$	1,205	$	1,290,911
Consumer - Direct
Performing	$	20,653	$	10,735	$	9,397	$	5,542	$	4,849	$	10,602	$	5,435	$	0	$	67,213
Nonperforming	0		9		44		117		12		0		1		0		183
Total Consumer - Direct	$	20,653	$	10,744	$	9,441	$	5,659	$	4,861	$	10,602	$	5,436	$	0	$	67,396
Consumer - Indirect
Performing	$	1,809	$	854	$	812	$	506	$	362	$	66	$	0	$	0	$	4,409
Nonperforming	0		2		148		81		1		14		0		0		246
Total Consumer - Indirect	$	1,809	$	856	$	960	$	587	$	363	$	80	$	0	$	0	$	4,655

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings per share

Earnings per share in the table below, for the three and six month periods ended June 30, 2022 and 2021 are calculated under the two-class method as required by ASC Topic 260, Earnings Per Share. ASC 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company has issued restricted stock awards that contain such rights and are therefore considered participating securities. Basic earnings per common share are calculated by dividing net income allocable to common stock by the weighted average number of common shares, excluding participating securities, during the period. Diluted earnings per common share include the dilutive effect of participating securities.

	Three Months Ended
(In thousands, except share and per share data)	6/30/2022		6/30/2021
Basic
Net income available to common shareholders	$	20,869	$	22,831
Less: income attributable to unvested stock-based compensation awards	(67)		(164)
Net earnings allocated to common shareholders	20,802		22,667
Weighted average shares outstanding, including unvested stock-based compensation awards	14,524,975		14,886,687
Less: average unvested stock-based compensation awards	(207,560)		(231,913)
Weighted average shares outstanding - Basic	14,317,415		14,654,774
Diluted
Net earnings allocated to common shareholders	20,802		22,667
Weighted average shares outstanding - Basic	14,317,415		14,654,774
Plus: incremental shares from assumed conversion of stock-based compensation awards	70,186		82,961
Weighted average shares outstanding - Diluted	14,387,601		14,737,735
Basic EPS	$	1.45	$	1.55
Diluted EPS	$	1.45	$	1.54

	Six Months Ended
(In thousands, except share and per share data)	6/30/2022		6/30/2021
Basic
Net income available to common shareholders	$	44,142	$	48,457
Less: income attributable to unvested stock-based compensation awards	(143)		(350)
Net earnings allocated to common shareholders	43,999		48,107
Weighted average shares outstanding, including unvested stock-based compensation awards	14,568,102		14,899,524
Less: unvested stock-based compensation awards	(209,633)		(234,003)
Weighted average shares outstanding - Basic	14,358,469		14,665,521
Diluted
Net earnings allocated to common shareholders	43,999		48,107
Weighted average shares outstanding - Basic	14,358,469		14,665,521
Plus: incremental shares from assumed conversion of stock-based compensation awards	74,183		82,055
Weighted average shares outstanding - Diluted	14,432,652		14,747,576
Basic EPS	$	3.06	$	3.28
Diluted EPS	$	3.05	$	3.26

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Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Schedule of activity in accumulated other comprehensive income (loss) and amounts reclassified out of each component of accumulated other comprehensive (loss) income

The following tables present reclassifications out of accumulated other comprehensive income (loss) for the three and six month periods ended June 30, 2022 and 2021:

	Three Months Ended June 30, 2022
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(57,544)	$	14,095	$	(43,449)
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	(57,544)		14,095		(43,449)
Employee benefit plans:
Amortization of net retirement plan actuarial gain	514		(125)		389
Amortization of net retirement plan prior service cost	53		(13)		40
Employee benefit plans	567		(138)		429
Other comprehensive (loss) income	$	(56,977)	$	13,957	$	(43,020)

	Three Months Ended June 30, 2021
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	11,244	$	(2,755)	$	8,489
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	11,244		(2,755)		8,489
Employee benefit plans:
Amortization of net retirement plan actuarial gain	712		(175)		537
Amortization of net retirement plan prior service cost	55		(13)		42
Employee benefit plans	767		(188)		579
Other comprehensive income (loss)	$	12,011	$	(2,943)	$	9,068

	Six Months Ended June 30, 2022
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(164,025)	$	40,171	$	(123,854)
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	0		0		0
Net unrealized gains/losses	(164,025)		40,171		(123,854)
Employee benefit plans:
Amortization of net retirement plan actuarial loss	1,129		(276)		853
Amortization of net retirement plan prior service cost	109		(27)		82
Employee benefit plans	1,238		(303)		935
Other comprehensive (loss) income	$	(162,787)	$	39,868	$	(122,919)

	Six Months Ended June 30, 2021
(In thousands)	Before-Tax Amount		Tax (Expense) Benefit		Net of Tax
Available-for-sale debt securities:
Change in net unrealized gain/loss during the period	$	(22,197)	$	5,440	$	(16,757)
Reclassification adjustment for net realized gain on sale of available-for-sale debt securities included in net income	(330)		81		(249)
Net unrealized gains/losses	(22,527)		5,521		(17,006)
Employee benefit plans:
Amortization of net retirement plan actuarial loss	1,476		(362)		1,114
Amortization of net retirement plan prior service cost	111		(27)		84
Employee benefit plans	1,587		(389)		1,198
Other comprehensive (loss) income	$	(20,940)	$	5,132	$	(15,808)

The following table presents the activity in our accumulated other comprehensive (loss) income for the periods indicated:

(In thousands)	Available-for- Sale Debt Securities		Employee Benefit Plans		Accumulated Other Comprehensive (Loss) Income
Balance at March 31, 2022	$	(94,965)	$	(40,884)	$	(135,849)
Other comprehensive (loss) income before reclassifications	(43,449)		0		(43,449)
Amounts reclassified from accumulated other comprehensive (loss) income	0		429		429
Net current-period other comprehensive (loss) income	(43,449)		429		(43,020)
Balance at June 30, 2022	$	(138,414)	$	(40,455)	$	(178,869)
Balance at January 1, 2022	$	(14,560)	$	(41,390)	$	(55,950)
Other comprehensive (loss) income before reclassifications	(123,854)		0		(123,854)
Amounts reclassified from accumulated other comprehensive (loss) income	0		935		935
Net current-period other comprehensive (loss) income	(123,854)		935		(122,919)
Balance at June 30, 2022	$	(138,414)	$	(40,455)	$	(178,869)

(In thousands)	Available-for- Sale Debit Securities		Employee Benefit Plans		Accumulated Other Comprehensive (Loss) Income
Balance at March 31, 2021	$	(4,886)	$	(52,064)	$	(56,950)
Other comprehensive income (loss) before reclassifications	8,489		0		8,489
Amounts reclassified from accumulated other comprehensive (loss) income	0		579		579
Net current-period other comprehensive income (loss)	8,489		579		9,068
Balance at June 30, 2021	$	3,603	$	(51,485)	$	(47,882)
Balance at January 1, 2021	$	20,609	$	(52,683)	$	(32,074)
Other comprehensive (loss) income before reclassifications	(16,757)		0		(16,757)
Amounts reclassified from accumulated other comprehensive (loss) income	(249)		1,198		949
Net current-period other comprehensive (loss) income	(17,006)		1,198		(15,808)
Balance at June 30, 2021	$	3,603	$	(51,485)	$	(47,882)

Schedule of reclassifications out of accumulated other comprehensive income (loss)

The following tables present the amounts reclassified out of each component of accumulated other comprehensive (loss) income for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30, 2022
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following 2
Net retirement plan actuarial loss	(514)		Other operating expense
Net retirement plan prior service cost	(53)		Other operating expense
	(567)		Total before tax
	138		Tax benefit
	$	(429)	Net of tax

Three Months Ended June 30, 2021
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(711)		Other operating expense
Net retirement plan prior service cost	(56)		Other operating expense
	(767)		Total before tax
	188		Tax benefit
	$	(579)	Net of tax

Six Months Ended June 30, 2022
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	0	Net (loss) gain on securities transactions
	0		Tax expense
	0		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(1,129)		Other operating expense
Net retirement plan prior service cost	(109)		Other operating expense
	(1,238)		Total before tax
	303		Tax benefit
	$	(935)	Net of tax

Six Months Ended June 30, 2021
Details about Accumulated other Comprehensive Income (Loss) Components (In thousands)	Amount Reclassified from Accumulated Other Comprehensive (Loss) Income1		Affected Line Item in the Statement Where Net Income is Presented
Available-for-sale debt securities:
Unrealized gains and losses on available-for-sale debt securities	$	330	Net (loss) gain on securities transactions
	(81)		Tax expense
	249		Net of tax
Employee benefit plans:
Amortization of the following2
Net retirement plan actuarial loss	(1,475)		Other operating expense
Net retirement plan prior service cost	(111)		Other operating expense
	(1,586)		Total before tax
	388		Tax benefit
	$	(1,198)	Net of tax

1 Amounts in parentheses indicated debits in income statement.

2 The accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit cost (See Note 8 - "Employee Benefit Plan").

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Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Schedule of components of net periodic benefit cost

Components of Net Periodic Benefit Cost

	Pension Benefits				Life and Health				SERP Benefits
	Three Months Ended				Three Months Ended				Three Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021		6/30/2022		6/30/2021
Service cost	$	0	$	0	$	43	$	42	$	(13)	$	55
Interest cost	529		327		59		36		206		147
Expected return on plan assets	(1,474)		(1,411)		0		0		0		0
Amortization of net retirement plan actuarial loss	285		397		46		82		183		233
Amortization of net retirement plan prior service (credit) cost	0		0		(15)		(15)		68		70
Net periodic benefit (income) cost	$	(660)	$	(687)	$	133	$	145	$	444	$	505

	Pension Benefits				Life and Health				SERP Benefits
	Six Months Ended				Six Months Ended				Six Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021		6/30/2022		6/30/2021
Service cost	$	0	$	0	$	87	$	93	$	39	$	115
Interest cost	992		814		111		90		407		346
Expected return on plan assets	(2,942)		(2,826)		0		0		0		0
Amortization of net retirement plan actuarial loss	608		780		98		156		423		540
Amortization of net retirement plan prior service cost (credit)	0		0		(30)		(30)		139		141
Net periodic benefit (income) cost	$	(1,342)	$	(1,232)	$	266	$	309	$	1,008	$	1,142

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Other Income and Operating Expense (Tables)

6 Months Ended

Jun. 30, 2022

Other Income and Expenses [Abstract]

Schedule of other income and operating expense

Other income and operating expense totals are presented in the table below. Components of these totals exceeding 1% of the aggregate of total noninterest income and total noninterest expenses for any of the periods presented below are stated separately.

	Three Months Ended				Six Months Ended
(In thousands)	6/30/2022		6/30/2021		6/30/2022		6/30/2021
Noninterest Income
Other service charges	$	669	$	710	$	1,296	$	1,379
Earnings from corporate owned life insurance	171		570		593		1,111
Net gains on the sales of loans originated for sale	53		153		57		582
Other income	348		232		771		567
Total other income	$	1,241	$	1,665	$	2,717	$	3,639
Noninterest Expenses
Marketing expense	$	1,456	$	1,132	$	2,513	$	1,627
Professional fees	1,719		1,533		3,325		3,427
Legal fees	498		221		708		441
Technology expense	3,690		2,977		7,373		5,905
Cardholder expense	1,280		875		2,422		1,662
Other expenses	4,386		3,992		8,708		8,293
Total other operating expense	$	13,029	$	10,730	$	25,049	$	21,355

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Schedule of disaggregation of noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC 606

The following tables present noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC 606, for the three and six months ended June 30, 2022 and 2021:

	Three Months Ended
(In thousands)	06/30/2022		06/30/2021
Noninterest Income
In-scope of Topic 606:
Commissions and Fees	$	7,872	$	7,488
Installment Billing	(46)		(52)
Refund of Commissions	10		31
Contract Liabilities/Deferred Revenue	(266)		(237)
Contingent Commissions	859		824
Subtotal Insurance Revenues	8,429		8,054
Trust and Asset Management	3,122		3,334
Mutual Fund & Investment Income	1,474		1,383
Subtotal Investment Service Income	4,596		4,717
Service Charges on Deposit Accounts	1,756		1,471
Card Services Income	2,959		2,951
Other	308		297
Noninterest Income (in-scope of ASC 606)	18,048		17,490
Noninterest Income (out-of-scope of ASC 606)	896		1,368
Total Noninterest Income	$	18,944	$	18,858

	Six Months Ended
(In thousands)	06/30/2022		06/30/2021
Noninterest Income
In-scope of Topic 606:
Commissions and Fees	$	15,836	$	15,171
Installment Billing	(2)		(17)
Refund of Commissions	(18)		11
Contract Liabilities/Deferred Revenue	(267)		(237)
Contingent Commissions	2,197		2,292
Subtotal Insurance Revenues	17,746		17,220
Trust and Asset Management	6,625		6,700
Mutual Fund & Investment Income	2,888		2,690
Subtotal Investment Service Income	9,513		9,390
Service Charges on Deposit Accounts	3,535		2,941
Card Services Income	5,502		5,334
Other	624		598
Noninterest Income (in-scope of ASC 606)	36,920		35,483
Noninterest Income (out-of-scope of ASC 606)	2,009		3,358
Total Noninterest Income	$	38,929	$	38,841

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Segment and Related Information (Table)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of segment and related information

Summarized financial information concerning the Company’s reportable segments and the reconciliation to the Company’s consolidated results is shown in the following table. Investment in subsidiaries is netted out of the presentations below. The "Intercompany" column identifies the intercompany activities of revenues, expenses and other assets between the banking, insurance and wealth management services segments. The Company accounts for intercompany fees and services at an estimated fair value according to regulatory requirements for the services provided. Intercompany items relate primarily to the use of human resources, information systems, accounting and marketing services provided by any of the banks and the holding company. All other accounting policies are the same as those described in the summary of significant accounting policies in the 2021 Annual Report on Form 10-K.

Three months ended June 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	60,953	$	1	$	0	$	(1)	$	60,953
Interest expense	2,692		0		0		(1)		2,691
Net interest income	58,261		1		0		0		58,262
Provision for credit loss expense	856		0		0		0		856
Noninterest income	6,329		8,573		4,598		(556)		18,944
Noninterest expense	39,395		6,812		3,469		(556)		49,120
Income before income tax expense	24,339		1,762		1,129		0		27,230
Income tax expense	5,465		494		370		0		6,329
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	18,874		1,268		759		0		20,901
Less: Net income attributable to noncontrolling interests	32		0		0		0		32
Net Income attributable to Tompkins Financial Corporation	$	18,842	$	1,268	$	759	$	0	$	20,869
Depreciation and amortization	$	2,515	$	44	$	36	$	0	$	2,595
Assets	7,786,614		47,222		26,915		(18,290)		7,842,461
Goodwill	64,500		19,866		8,081		0		92,447
Other intangibles, net	1,236		1,830		58		0		3,124
Net loans and leases	5,118,710		0		0		0		5,118,710
Deposits	6,786,754		0		(847)		(16,386)		6,769,521
Total Equity	563,994		34,860		25,464		0		624,318

Three months ended June 30, 2021
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	59,843	$	0	$	0	$	(8)	$	59,835
Interest expense	4,997		0		0		(8)		4,989
Net interest income	54,846		0		0		0		54,846
Credit for credit loss expense	(3,071)		0		0		0		(3,071)
Noninterest income	6,447		8,163		4,808		(560)		18,858
Noninterest expense	37,879		6,760		3,363		(560)		47,442
Income before income tax expense	26,485		1,403		1,445		0		29,333
Income tax expense	5,729		401		341		0		6,471
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	20,756		1,002		1,104		0		22,862
Less: Net income attributable to noncontrolling interests	31		0		0		0		31
Net Income attributable to Tompkins Financial Corporation	$	20,725	$	1,002	$	1,104	$	0	$	22,831
Depreciation and amortization	$	2,527	$	55	$	14	$	0	$	2,596
Assets	7,987,751		46,590		30,435		(76,568)		7,988,208
Goodwill	64,370		19,866		8,211		0		92,447
Other intangibles, net	1,994		2,201		79		0		4,274
Net loans and leases	5,127,624		0		0		0		5,127,624
Deposits	6,851,924		0		0		(14,924)		6,837,000
Total Equity	667,007		33,101		28,145		0		728,253

Six months ended June 30, 2022
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	120,129	$	2	$	0	$	(2)	$	120,129
Interest expense	5,255		0		0		(2)		5,253
Net interest income	114,874		2		0		0		114,876
Provision for credit loss expense	336		0		0		0		336
Noninterest income	12,522		18,007		9,532		(1,132)		38,929
Noninterest expense	76,584		13,314		7,193		(1,132)		95,959
Income before income tax expense	50,476		4,695		2,339		0		57,510
Income tax expense	11,630		1,310		365		0		13,305
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	38,846		3,385		1,974		0		44,205
Less: Net income attributable to noncontrolling interests	63		0		0		0		63
Net Income attributable to Tompkins Financial Corporation	$	38,783	$	3,385	$	1,974	$	0	$	44,142
Depreciation and amortization	$	5,093	$	88	$	64	$	0	$	5,245

Six months ended June 30, 2021
(In thousands)	Banking		Insurance		Wealth Management		Intercompany		Consolidated
Interest income	$	119,597	$	2	$	0	$	(9)	$	119,590
Interest expense	9,716		0		0		(9)		9,707
Net interest income	109,881		2		0		0		109,883
Provision for credit loss expense	(4,901)		0		0		0		(4,901)
Noninterest income	12,759		17,581		9,591		(1,090)		38,841
Noninterest expense	73,206		13,197		6,640		(1,090)		91,953
Income before income tax expense	54,335		4,386		2,951		0		61,672
Income tax expense	11,243		1,203		705		0		13,151
Net Income attributable to noncontrolling interests and Tompkins Financial Corporation	43,092		3,183		2,246		0		48,521
Less: Net income attributable to noncontrolling interests	64		0		0		0		64
Net Income attributable to Tompkins Financial Corporation	$	43,028	$	3,183	$	2,246	$	0	$	48,457
Depreciation and amortization	$	4,965	$	110	$	27	$	0	$	5,102

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Summary of financial assets and financial liabilities measured at fair value on recurring basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of valuation inputs within the fair value hierarchy used to measure fair value:

Recurring Fair Value Measurements
June 30, 2022
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-sale debt securities
U.S. Treasuries	$	174,102	$	0	$	174,102	$	0
Obligations of U.S. Government sponsored entities	793,493		0		793,493		0
Obligations of U.S. states and political subdivisions	88,078		0		88,078		0
Mortgage-backed securities – residential, issued by:
U.S. Government agencies	59,114		0		59,114		0
U.S. Government sponsored entities	774,571		0		774,571		0
U.S. corporate debt securities	2,360		0		2,360		0
Total Available-for-sale debt securities	$	1,891,718	$	0	$	1,891,718	$	0
Equity securities, at fair value	$	818	$	0	$	0	$	818

Recurring Fair Value Measurements
December 31, 2021
(In thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Available-for-sale debt securities
U.S. Treasuries	$	157,834	$	0	$	157,834	$	0
Obligations of U.S. Government sponsored entities	832,373		0		832,373		0
Obligations of U.S. states and political subdivisions	104,169		0		104,169		0
Mortgage-backed securities – residential, issued by:
U.S. Government agencies	77,157		0		77,157		0
U.S. Government sponsored entities	870,556		0		870,556		0
U.S. corporate debt securities	2,424		0		2,424		0
Total Available-for-sale debt securities	$	2,044,513	$	0	$	2,044,513	$	0
Equity securities, at fair value	$	902	$	0	$	0	$	902

Schedule of assets measured at fair value on nonrecurring basis

Three months ended June 30, 2022
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2022		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended 06/30/2022
Individually evaluated loans	$	814	$	0	$	0	$	814	$	59
Other real estate owned	33		0		33		0		0

Three months ended June 30, 2021
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2021		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended 06/30/2021
Individually evaluated loans	$	8,922	$	0	$	8,922	$	0	$	0

Six months ended June 30, 2022
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2022		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Six months ended 06/30/2022
Individually evaluated loans	$	1,320	$	0	$	0	$	1,320	$	59
Other real estate owned	33		0		33		0		22

Six months ended June 30, 2021
(In thousands)			Fair value measurements at reporting date using:						Gain (losses) from fair value changes
Assets:	As of 06/30/2021		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Six months ended 06/30/2021
Individually evaluated loans	$	31,619	$	0	$	31,619	$	0	$	0

Schedule of carrying amount and estimated fair value of financial instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments at June 30, 2022 and December 31, 2021. The carrying amounts shown in the table are included in the Consolidated Statements of Condition under the indicated captions.

Estimated Fair Value of Financial Instruments
June 30, 2022
(In thousands)	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	80,392	$	80,392	$	80,392	$	0	$	0
Securities - held-to-maturity	312,315		274,660		0		274,660		0
FHLB and other stock	17,913		17,913		0		17,913		0
Accrued interest receivable	22,420		22,420		0		22,420		0
Loans/leases, net1	5,118,710		4,958,348		0		0		4,958,348
Financial Liabilities:
Time deposits	$	594,853	$	585,487	$	0	$	585,487	$	0
Other deposits	6,174,668		6,174,668		0		6,174,668		0
Fed funds purchased and securities sold
under agreements to repurchase	50,075		50,075		0		50,075		0
Other borrowings	295,600		294,234		0		294,234		0
Accrued interest payable	815		815		0		815		0

Estimated Fair Value of Financial Instruments
December 31, 2021
(In thousands)	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Financial Assets:
Cash and cash equivalents	$	63,107	$	63,107	$	63,107	$	0	$	0
FHLB and other stock	10,996		10,996		0		10,996		0
Accrued interest receivable	22,597		22,597		0		22,597		0
Loans/leases, net1	5,032,624		5,028,734		0		0		5,028,734
Financial Liabilities:
Time deposits	$	639,674	$	641,517	$	0	$	641,517	$	0
Other deposits	6,151,761		6,151,761		0		6,151,761		0
Fed funds purchased and securities
sold under agreements to repurchase	66,787		66,787		0		66,787		0
Other borrowings	124,000		125,700		0		125,700		0
Accrued interest payable	901		901		0		901		0

1 Lease receivables, although excluded from the scope of ASC Topic 825, are included in the estimated fair value amounts at their carrying value.

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of condition as of June 30, 2022 and December 31, 2021. The Company began entering into derivative transactions in the second quarter of 2022.

Derivative Liabilities
	June 30, 2022
	Notional		Balance Sheet	Fair
(In thousands)	Amount		Location	Value
Derivatives not designated as hedging instruments
Interest Rate Products	$	0	Other Liabilities	$	0
Other Contracts	7,499		Other Liabilities	37
Total derivatives not designated as hedging instruments				$	37

Schedule of Derivative Instruments in Statement of Income

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the six months ended June 30, 2022:

Effect of Derivatives Not Designated as Hedging Instruments on the Statement of Financial Performance
Derivatives Not Designated as Hedging Instruments under Subtopic 815-20	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
(In thousands)		June 30, 2022
Interest Rate Products	Other income / (expense)	$	0
Other Contracts	Other income / (expense)	41
Total		$	41

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Business (Details) - subsidiary		6 Months Ended
	Jan. 01, 2022	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of wholly owned subsidiaries combined	4
Number of wholly owned subsidiaries		1

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Securities - Schedule of Available-for-Sales Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 2,075,020	$ 2,063,790
Gross Unrealized Gains	146	13,626
Gross Unrealized Losses	183,448	32,903
Fair Value	1,891,718	2,044,513
U.S. Treasuries
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	191,051	160,291
Gross Unrealized Gains	0	85
Gross Unrealized Losses	16,949	2,542
Fair Value	174,102	157,834
Obligations of U.S. Government sponsored entities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	863,235	843,218
Gross Unrealized Gains	36	4,527
Gross Unrealized Losses	69,778	15,372
Fair Value	793,493	832,373
Obligations of U.S. states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	95,661	102,177
Gross Unrealized Gains	54	2,092
Gross Unrealized Losses	7,637	100
Fair Value	88,078	104,169
U.S. Government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	63,185	76,502
Gross Unrealized Gains	38	1,187
Gross Unrealized Losses	4,109	532
Fair Value	59,114	77,157
U.S. Government sponsored entities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	859,388	879,102
Gross Unrealized Gains	18	5,735
Gross Unrealized Losses	84,835	14,281
Fair Value	774,571	870,556
U.S. corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,500	2,500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	140	76
Fair Value	$ 2,360	$ 2,424

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Securities - Schedule of Held-to-Maturity Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 312,315	$ 284,009
Gross Unrealized Gains	0	668
Gross Unrealized Losses	37,655	2,389
Fair Value	274,660	282,288
U.S. Treasuries
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	86,582	86,689
Gross Unrealized Gains	0	279
Gross Unrealized Losses	9,237	600
Fair Value	77,345	86,368
Obligations of U.S. Government sponsored entities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	225,733	197,320
Gross Unrealized Gains	0	389
Gross Unrealized Losses	28,418	1,789
Fair Value	$ 197,315	$ 195,920

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Securities - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Realized gains on available-for-sale debt securities	$ 0	$ 0	$ 0	$ 329,000
Realized losses on available-for-sale debt securities	0	0	0	0
Proceeds from sales of available-for-sale debt securities	0	2,200,000	0	38,924,000
Realized gains on called available-for-sale debt securities	0	0	0	0
Realized gains (losses) on equity securities, net	(36,700)	$ 0	(83,700)	$ (12,000)
Federal Home Loan Bank New York (FHLBNY)
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Holdings of FHLBNY, FHLBPITT and ACBB stock, amount of advances	17,800,000		17,800,000
Atlantic Central Bankers Bank (ACBB)
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Holdings of FHLBNY, FHLBPITT and ACBB stock, amount of advances	$ 95,000		$ 95,000

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Securities - Schedule of Available-for-sale Securities with Unrealized Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available-for-sale securities
Fair Value, Less than 12 Months	$ 1,151,338	$ 1,095,830
Unrealized Losses, Less than 12 Months	84,404	20,921
Fair Value, 12 Months or Longer	693,287	394,300
Unrealized Losses, 12 Months or Longer	99,044	11,982
Fair Value	1,844,625	1,490,130
Unrealized Losses	183,448	32,903
U.S. Treasuries
Available-for-sale securities
Fair Value, Less than 12 Months	169,550	147,810
Unrealized Losses, Less than 12 Months	16,547	2,542
Fair Value, 12 Months or Longer	4,552	0
Unrealized Losses, 12 Months or Longer	402	0
Fair Value	174,102	147,810
Unrealized Losses	16,949	2,542
Obligations of U.S. Government sponsored entities
Available-for-sale securities
Fair Value, Less than 12 Months	353,414	362,895
Unrealized Losses, Less than 12 Months	23,720	6,694
Fair Value, 12 Months or Longer	411,422	289,210
Unrealized Losses, 12 Months or Longer	46,058	8,678
Fair Value	764,836	652,105
Unrealized Losses	69,778	15,372
Obligations of U.S. states and political subdivisions
Available-for-sale securities
Fair Value, Less than 12 Months	71,476	9,700
Unrealized Losses, Less than 12 Months	6,901	85
Fair Value, 12 Months or Longer	3,123	1,283
Unrealized Losses, 12 Months or Longer	736	15
Fair Value	74,599	10,983
Unrealized Losses	7,637	100
U.S. Government agencies
Available-for-sale securities
Fair Value, Less than 12 Months	36,509	22,074
Unrealized Losses, Less than 12 Months	1,299	160
Fair Value, 12 Months or Longer	21,389	16,846
Unrealized Losses, 12 Months or Longer	2,810	372
Fair Value	57,898	38,920
Unrealized Losses	4,109	532
U.S. Government sponsored entities
Available-for-sale securities
Fair Value, Less than 12 Months	520,389	553,351
Unrealized Losses, Less than 12 Months	35,937	11,440
Fair Value, 12 Months or Longer	250,441	84,537
Unrealized Losses, 12 Months or Longer	48,898	2,841
Fair Value	770,830	637,888
Unrealized Losses	84,835	14,281
U.S. corporate debt securities
Available-for-sale securities
Fair Value, Less than 12 Months	0	0
Unrealized Losses, Less than 12 Months	0	0
Fair Value, 12 Months or Longer	2,360	2,424
Unrealized Losses, 12 Months or Longer	140	76
Fair Value	2,360	2,424
Unrealized Losses	$ 140	$ 76

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Securities - Schedule of Held-to-maturity Securities with Unrealized Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Held-to-maturity debt securities
Fair Value, Less than 12 Months	$ 274,660	$ 119,872
Unrealized Losses, Less than 12 Months	37,655	2,389
Fair Value, 12 Months or Longer	0	0
Unrealized Losses, 12 Months or Longer	0	0
Fair Value	274,660	119,872
Unrealized Losses	37,655	2,389
U.S. Treasuries
Held-to-maturity debt securities
Fair Value, Less than 12 Months	77,345	35,280
Unrealized Losses, Less than 12 Months	9,237	600
Fair Value, 12 Months or Longer	0	0
Unrealized Losses, 12 Months or Longer	0	0
Fair Value	77,345	35,280
Unrealized Losses	9,237	600
Obligations of U.S. Government sponsored entities
Held-to-maturity debt securities
Fair Value, Less than 12 Months	197,315	84,592
Unrealized Losses, Less than 12 Months	28,418	1,789
Fair Value, 12 Months or Longer	0	0
Unrealized Losses, 12 Months or Longer	0	0
Fair Value	197,315	84,592
Unrealized Losses	$ 28,418	$ 1,789

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Securities - Schedule of Available-for-Sales Securities Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Amortized Cost
Total	$ 1,152,447	$ 1,108,186
Mortgage-backed securities	922,573	955,604
Amortized Cost	2,075,020	2,063,790
Fair Value
Total	1,058,033	1,096,800
Mortgage-backed securities	833,685	947,713
Fair Value	1,891,718	2,044,513
Available-for-sale securities
Amortized Cost
Due in one year or less	61,909	77,159
Due after one year through five years	534,330	474,537
Due after five years through ten years	505,724	501,748
Due after ten years	50,484	54,742
Fair Value
Due in one year or less	61,879	77,892
Due after one year through five years	503,095	471,776
Due after five years through ten years	451,324	492,573
Due after ten years	$ 41,735	$ 54,559

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Securities - Schedule of Held-to-Maturity Securities Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Amortized Cost
Due after five years through ten years	$ 312,315	$ 284,009
Total held-to-maturity debt securities	312,315	284,009
Fair Value
Due after five years through ten years	274,660	282,288
Total held-to-maturity debt securities	$ 274,660	$ 282,288

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Loans and Leases - Schedule of Loans and Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 5,166,784	$ 5,082,288
Less: unearned income and deferred costs and fees	(4,281)	(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	5,162,503	5,075,467
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	790,627	869,553
Commercial and industrial | Agriculture
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	69,291	99,172
Total loans and leases, net of unearned income and deferred costs and fees	69,291	99,172
Commercial and industrial | Commercial and industrial other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	717,837	699,121
Total loans and leases, net of unearned income and deferred costs and fees	717,837	699,121
Commercial and industrial | PPP loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	3,499	71,260
Total loans and leases, net of unearned income and deferred costs and fees	3,499	71,260
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	2,770,574	2,653,154
Commercial real estate | Agriculture
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	200,089	195,973
Total loans and leases, net of unearned income and deferred costs and fees	200,089	195,973
Commercial real estate | Commercial and industrial other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	2,361,790	2,278,599
Total loans and leases, net of unearned income and deferred costs and fees	2,361,790	2,278,599
Commercial real estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	208,695	178,582
Total loans and leases, net of unearned income and deferred costs and fees	208,695	178,582
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	1,523,335	1,473,582
Residential real estate | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	181,672	182,671
Total loans and leases, net of unearned income and deferred costs and fees	181,672	182,671
Residential real estate | Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	1,341,663	1,290,911
Total loans and leases, net of unearned income and deferred costs and fees	1,341,663	1,290,911
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	68,229	72,051
Consumer and other | Commercial and industrial other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	65,033	67,396
Consumer and other | Indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	3,196	4,655
Total loans and leases, net of unearned income and deferred costs and fees	3,196	4,655
Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases	$ 14,019	$ 13,948

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Loans and Leases - Schedule of Past Due Loans and Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Total loans and leases	$ 5,166,784	$ 5,082,288
Less: unearned income and deferred costs and fees	(4,281)	(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	5,162,503	5,075,467
30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,860	1,422
Less: unearned income and deferred costs and fees	0	0
60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	7,977	1,650
Less: unearned income and deferred costs and fees	0	0
90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	12,832	8,155
Less: unearned income and deferred costs and fees	0	0
Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	22,669	11,227
Less: unearned income and deferred costs and fees	0	0
Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	5,144,115	5,071,061
Less: unearned income and deferred costs and fees	(4,281)	(6,821)
Total loans and leases, net of unearned income and deferred costs and fees	5,139,834	5,064,240
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total loans and leases	790,627	869,553
Commercial and industrial | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	961	506
Commercial and industrial | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	924	6
Commercial and industrial | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	92	88
Commercial and industrial | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,977	600
Commercial and industrial | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	788,650	868,953
Commercial and industrial | Agriculture
Financing Receivable, Past Due [Line Items]
Total loans and leases	69,291	99,172
Total loans and leases, net of unearned income and deferred costs and fees	69,291	99,172
Commercial and industrial | Agriculture | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	33	0
Commercial and industrial | Agriculture | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial and industrial | Agriculture | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial and industrial | Agriculture | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	33	0
Commercial and industrial | Agriculture | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	69,258	99,172
Commercial and industrial | Commercial and industrial other
Financing Receivable, Past Due [Line Items]
Total loans and leases	717,837	699,121
Total loans and leases, net of unearned income and deferred costs and fees	717,837	699,121
Commercial and industrial | Commercial and industrial other | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	875	506
Commercial and industrial | Commercial and industrial other | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	923	6
Commercial and industrial | Commercial and industrial other | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	92	88
Commercial and industrial | Commercial and industrial other | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,890	600
Commercial and industrial | Commercial and industrial other | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	715,947	698,521
Commercial and industrial | PPP loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	3,499	71,260
Total loans and leases, net of unearned income and deferred costs and fees	3,499	71,260
Commercial and industrial | PPP loans | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	53	0
Commercial and industrial | PPP loans | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	1	0
Commercial and industrial | PPP loans | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial and industrial | PPP loans | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	54	0
Commercial and industrial | PPP loans | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	3,445	71,260
Commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans and leases	2,770,574	2,653,154
Commercial real estate | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	472	271
Commercial real estate | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	5,405	257
Commercial real estate | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	5,762	3,305
Commercial real estate | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	11,639	3,833
Commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	2,758,935	2,649,321
Commercial real estate | Agriculture
Financing Receivable, Past Due [Line Items]
Total loans and leases	200,089	195,973
Total loans and leases, net of unearned income and deferred costs and fees	200,089	195,973
Commercial real estate | Agriculture | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	219	121
Commercial real estate | Agriculture | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial real estate | Agriculture | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial real estate | Agriculture | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	219	121
Commercial real estate | Agriculture | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	199,870	195,852
Commercial real estate | Commercial and industrial other
Financing Receivable, Past Due [Line Items]
Total loans and leases	2,361,790	2,278,599
Total loans and leases, net of unearned income and deferred costs and fees	2,361,790	2,278,599
Commercial real estate | Commercial and industrial other | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	253	150
Commercial real estate | Commercial and industrial other | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	5,405	257
Commercial real estate | Commercial and industrial other | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	5,762	3,305
Commercial real estate | Commercial and industrial other | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	11,420	3,712
Commercial real estate | Commercial and industrial other | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	2,350,370	2,274,887
Commercial real estate | Construction
Financing Receivable, Past Due [Line Items]
Total loans and leases	208,695	178,582
Total loans and leases, net of unearned income and deferred costs and fees	208,695	178,582
Commercial real estate | Construction | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial real estate | Construction | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial real estate | Construction | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial real estate | Construction | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Commercial real estate | Construction | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	208,695	178,582
Residential real estate
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,523,335	1,473,582
Residential real estate | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	306	448
Residential real estate | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,506	1,256
Residential real estate | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	6,837	4,715
Residential real estate | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	8,649	6,419
Residential real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,514,686	1,467,163
Residential real estate | Home equity
Financing Receivable, Past Due [Line Items]
Total loans and leases	181,672	182,671
Total loans and leases, net of unearned income and deferred costs and fees	181,672	182,671
Residential real estate | Home equity | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	306	441
Residential real estate | Home equity | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	417
Residential real estate | Home equity | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,347	798
Residential real estate | Home equity | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,653	1,656
Residential real estate | Home equity | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	180,019	181,015
Residential real estate | Mortgages
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,341,663	1,290,911
Total loans and leases, net of unearned income and deferred costs and fees	1,341,663	1,290,911
Residential real estate | Mortgages | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	7
Residential real estate | Mortgages | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,506	839
Residential real estate | Mortgages | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	5,490	3,917
Residential real estate | Mortgages | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	6,996	4,763
Residential real estate | Mortgages | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	1,334,667	1,286,148
Consumer and other
Financing Receivable, Past Due [Line Items]
Total loans and leases	68,229	72,051
Consumer and other | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	121	197
Consumer and other | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	142	131
Consumer and other | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	141	47
Consumer and other | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	404	375
Consumer and other | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	67,825	71,676
Consumer and other | Commercial and industrial other
Financing Receivable, Past Due [Line Items]
Total loans and leases	65,033	67,396
Consumer and other | Commercial and industrial other | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	57	120
Consumer and other | Commercial and industrial other | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	119	45
Consumer and other | Commercial and industrial other | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	89	45
Consumer and other | Commercial and industrial other | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	265	210
Consumer and other | Commercial and industrial other | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	64,768	67,186
Consumer and other | Indirect
Financing Receivable, Past Due [Line Items]
Total loans and leases	3,196	4,655
Total loans and leases, net of unearned income and deferred costs and fees	3,196	4,655
Consumer and other | Indirect | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	64	77
Consumer and other | Indirect | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	23	86
Consumer and other | Indirect | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	52	2
Consumer and other | Indirect | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	139	165
Consumer and other | Indirect | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	3,057	4,490
Leases
Financing Receivable, Past Due [Line Items]
Total loans and leases	14,019	13,948
Leases | 30-59 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Leases | 60-89 Days
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Leases | 90 Days or More
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Leases | Total Past Due
Financing Receivable, Past Due [Line Items]
Total loans and leases	0	0
Leases | Current Loans
Financing Receivable, Past Due [Line Items]
Total loans and leases	$ 14,019	$ 13,948

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Loans and Leases - Nonaccrual Loans (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	$ 13,185,000		$ 13,185,000		$ 15,101,000
Nonaccrual Loans and Leases	24,665,000		24,665,000		26,033,000
Loans and Leases Past Due Over 89 Days and Accruing	62,000		62,000		0
Interest on nonaccrual loans	0	$ 0	0	$ 0
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	92,000		92,000		502,000
Nonaccrual Loans and Leases	293,000		293,000		533,000
Loans and Leases Past Due Over 89 Days and Accruing	62,000		62,000		0
Commercial and industrial | Commercial and industrial other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	92,000		92,000		502,000
Nonaccrual Loans and Leases	293,000		293,000		533,000
Loans and Leases Past Due Over 89 Days and Accruing	62,000		62,000		0
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	11,694,000		11,694,000		13,502,000
Nonaccrual Loans and Leases	12,545,000		12,545,000		13,893,000
Loans and Leases Past Due Over 89 Days and Accruing	0		0		0
Commercial real estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	340,000		340,000		671,000
Nonaccrual Loans and Leases	0		0		671,000
Loans and Leases Past Due Over 89 Days and Accruing	0		0		0
Commercial real estate | Agriculture
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL					348,000
Nonaccrual Loans and Leases					456,000
Loans and Leases Past Due Over 89 Days and Accruing					0
Commercial real estate | Commercial and industrial other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	11,354,000		11,354,000		12,483,000
Nonaccrual Loans and Leases	12,545,000		12,545,000		12,766,000
Loans and Leases Past Due Over 89 Days and Accruing	0		0		0
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	1,399,000		1,399,000		1,096,000
Nonaccrual Loans and Leases	11,536,000		11,536,000		11,178,000
Loans and Leases Past Due Over 89 Days and Accruing	0		0		0
Residential real estate | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	419,000		419,000		380,000
Nonaccrual Loans and Leases	2,506,000		2,506,000		2,459,000
Loans and Leases Past Due Over 89 Days and Accruing	0		0		0
Residential real estate | Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	980,000		980,000		716,000
Nonaccrual Loans and Leases	9,030,000		9,030,000		8,719,000
Loans and Leases Past Due Over 89 Days and Accruing	0		0		0
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	0		0		1,000
Nonaccrual Loans and Leases	291,000		291,000		429,000
Loans and Leases Past Due Over 89 Days and Accruing	0		0		0
Consumer and other | Commercial and industrial other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	0		0		0
Nonaccrual Loans and Leases	116,000		116,000		183,000
Loans and Leases Past Due Over 89 Days and Accruing	0		0		0
Consumer and other | Indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual Loans and Leases with no ACL	0		0		1,000
Nonaccrual Loans and Leases	175,000		175,000		246,000
Loans and Leases Past Due Over 89 Days and Accruing	$ 0		$ 0		$ 0

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Allowance for Credit Losses - Schedule of Detail in Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 42,126	$ 49,339	$ 42,843	$ 51,669
Charge-offs	(156)	(110)	(402)	(316)
Recoveries	1,043	994	1,306	1,380
(Credit) provision for credit loss expense	780	(2,718)	46	(5,228)
Ending balance	43,793	47,505	43,793	47,505
Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	7,027	7,750	6,335	9,239
Charge-offs	0	(2)	(23)	(118)
Recoveries	6	4	26	101
(Credit) provision for credit loss expense	781	(639)	1,476	(2,109)
Ending balance	7,814	7,113	7,814	7,113
Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	22,982	30,467	24,813	30,546
Charge-offs	(23)	0	(50)	0
Recoveries	764	826	805	1,039
(Credit) provision for credit loss expense	(496)	(2,092)	(2,341)	(2,384)
Ending balance	23,227	29,201	23,227	29,201
Residential real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	10,447	9,470	10,139	10,257
Charge-offs	(51)	(48)	(51)	(46)
Recoveries	197	125	307	158
(Credit) provision for credit loss expense	489	(13)	687	(835)
Ending balance	11,082	9,534	11,082	9,534
Consumer and other
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,588	1,583	1,492	1,562
Charge-offs	(82)	(60)	(278)	(152)
Recoveries	76	39	168	82
(Credit) provision for credit loss expense	9	28	209	98
Ending balance	1,591	1,590	1,591	1,590
Finance Leases
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	82	69	64	65
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
(Credit) provision for credit loss expense	(3)	(2)	15	2
Ending balance	$ 79	$ 67	$ 79	$ 67

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Allowance for Credit Losses - Liabilities for Off-Balance Sheet Credit Exposures (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Off-Balance-Sheet, Credit Loss, Liability [Roll Forward]
Liabilities for off-balance sheet credit exposures at beginning of period	$ 2,720	$ 2,600	$ 2,506	$ 1,920
Provision for credit loss expense related to off-balance sheet credit exposures	76	(353)	290	327
Liabilities for off-balance sheet credit exposures at end of period	$ 2,796	$ 2,247	$ 2,796	$ 2,247

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Allowance for Credit Losses - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 13,991	$ 16,162
ACL Allocation	23	67
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	13,041	13,508
Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	363	395
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	587	2,259
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	422	865
ACL Allocation	23	26
Commercial and industrial | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	23	142
Commercial and industrial | Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	363	395
Commercial and industrial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	36	328
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	12,035	15,265
ACL Allocation	0	40
Commercial real estate | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	11,484	13,334
Commercial real estate | Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	0	0
Commercial real estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	551	1,931
Commercial Real Estate - Agriculture
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	1,534
ACL Allocation	0
Commercial Real Estate - Agriculture | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	1,534
Commercial Real Estate - Agriculture | Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	0
Commercial Real Estate - Agriculture | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 0
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment		32
ACL Allocation		1
Residential Real Estate | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment		32
Residential Real Estate | Business Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment		0
Residential Real Estate | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment		$ 0

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Allowance for Credit Losses - Credit Quality Indicators by Commercial and Industrial Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases, net of unearned income and deferred costs and fees	$ 5,162,503	$ 5,075,467
Commercial and industrial | Commercial and industrial other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	78,886	124,331
One year before current fiscal year	106,637	59,786
Two years before current fiscal year	48,800	54,613
Three years before current fiscal year	49,212	42,768
Four years before current fiscal year	39,180	35,926
Prior	171,126	240,123
Revolving Loans Amortized Cost Basis	221,050	131,535
Revolving Loans Converted to Term	2,946	10,039
Total loans and leases, net of unearned income and deferred costs and fees	717,837	699,121
Commercial and industrial | Commercial and industrial other | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	78,886	123,996
One year before current fiscal year	106,368	58,432
Two years before current fiscal year	47,449	54,116
Three years before current fiscal year	48,848	42,093
Four years before current fiscal year	38,634	35,725
Prior	169,002	239,093
Revolving Loans Amortized Cost Basis	214,034	125,476
Revolving Loans Converted to Term	2,946	10,039
Total loans and leases, net of unearned income and deferred costs and fees	706,167	688,970
Commercial and industrial | Commercial and industrial other | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	156
One year before current fiscal year	142	770
Two years before current fiscal year	829	450
Three years before current fiscal year	298	100
Four years before current fiscal year	62	201
Prior	1,483	393
Revolving Loans Amortized Cost Basis	556	1,417
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	3,370	3,487
Commercial and industrial | Commercial and industrial other | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	179
One year before current fiscal year	127	584
Two years before current fiscal year	522	47
Three years before current fiscal year	66	575
Four years before current fiscal year	484	0
Prior	641	637
Revolving Loans Amortized Cost Basis	6,460	4,642
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	8,300	6,664
Commercial and industrial | PPP loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	71,260
One year before current fiscal year	3,086	0
Two years before current fiscal year	413	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	3,499	71,260
Commercial and industrial | PPP loans | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	71,260
One year before current fiscal year	3,086	0
Two years before current fiscal year	413	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	3,499	71,260
Commercial and industrial | PPP loans | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	0	0
Commercial and industrial | PPP loans | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	0	0
Commercial and industrial | Agriculture
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	8,481	8,573
One year before current fiscal year	6,259	6,867
Two years before current fiscal year	6,003	5,711
Three years before current fiscal year	4,850	10,159
Four years before current fiscal year	8,762	6,960
Prior	8,601	5,502
Revolving Loans Amortized Cost Basis	26,335	54,805
Revolving Loans Converted to Term	0	595
Total loans and leases, net of unearned income and deferred costs and fees	69,291	99,172
Commercial and industrial | Agriculture | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	8,481	8,573
One year before current fiscal year	6,259	6,782
Two years before current fiscal year	5,925	5,700
Three years before current fiscal year	4,850	10,136
Four years before current fiscal year	8,762	6,867
Prior	6,290	3,186
Revolving Loans Amortized Cost Basis	24,915	53,145
Revolving Loans Converted to Term	0	595
Total loans and leases, net of unearned income and deferred costs and fees	65,482	94,984
Commercial and industrial | Agriculture | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	23
Four years before current fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	0	23
Commercial and industrial | Agriculture | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	85
Two years before current fiscal year	78	11
Three years before current fiscal year	0	0
Four years before current fiscal year	0	93
Prior	2,311	2,316
Revolving Loans Amortized Cost Basis	1,420	1,660
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	3,809	4,165
Commercial real estate | Commercial and industrial other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	206,650	329,356
One year before current fiscal year	367,731	273,443
Two years before current fiscal year	295,459	263,300
Three years before current fiscal year	306,414	207,727
Four years before current fiscal year	218,619	223,667
Prior	929,946	892,837
Revolving Loans Amortized Cost Basis	16,236	45,044
Revolving Loans Converted to Term	20,735	43,225
Total loans and leases, net of unearned income and deferred costs and fees	2,361,790	2,278,599
Commercial real estate | Commercial and industrial other | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	206,650	325,874
One year before current fiscal year	364,170	271,680
Two years before current fiscal year	293,749	249,266
Three years before current fiscal year	291,194	201,992
Four years before current fiscal year	213,218	212,991
Prior	857,789	810,713
Revolving Loans Amortized Cost Basis	15,881	44,264
Revolving Loans Converted to Term	20,735	43,225
Total loans and leases, net of unearned income and deferred costs and fees	2,263,386	2,160,005
Commercial real estate | Commercial and industrial other | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	3,448	1,763
Two years before current fiscal year	1,710	11,772
Three years before current fiscal year	11,618	3,217
Four years before current fiscal year	2,993	2,167
Prior	48,522	61,723
Revolving Loans Amortized Cost Basis	0	358
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	68,291	81,000
Commercial real estate | Commercial and industrial other | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	3,482
One year before current fiscal year	113	0
Two years before current fiscal year	0	2,262
Three years before current fiscal year	3,602	2,518
Four years before current fiscal year	2,408	8,509
Prior	23,635	20,401
Revolving Loans Amortized Cost Basis	355	422
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	30,113	37,594
Commercial real estate | Agriculture
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	15,796	23,151
One year before current fiscal year	22,452	22,335
Two years before current fiscal year	21,568	28,943
Three years before current fiscal year	26,625	41,103
Four years before current fiscal year	38,780	23,195
Prior	70,406	52,412
Revolving Loans Amortized Cost Basis	3,202	1,984
Revolving Loans Converted to Term	1,260	2,850
Total loans and leases, net of unearned income and deferred costs and fees	200,089	195,973
Commercial real estate | Agriculture | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	15,796	23,151
One year before current fiscal year	22,452	21,856
Two years before current fiscal year	21,568	28,943
Three years before current fiscal year	26,406	41,064
Four years before current fiscal year	38,742	23,195
Prior	69,521	50,809
Revolving Loans Amortized Cost Basis	3,202	1,949
Revolving Loans Converted to Term	1,260	2,850
Total loans and leases, net of unearned income and deferred costs and fees	198,947	193,817
Commercial real estate | Agriculture | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	479
Two years before current fiscal year	0	0
Three years before current fiscal year	219	0
Four years before current fiscal year	0	0
Prior	391	350
Revolving Loans Amortized Cost Basis	0	35
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	610	864
Commercial real estate | Agriculture | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	39
Four years before current fiscal year	38	0
Prior	494	1,253
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	532	1,292
Commercial real estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	5,636	12,840
One year before current fiscal year	64,721	10,025
Two years before current fiscal year	67,810	16,325
Three years before current fiscal year	26,733	7,542
Four years before current fiscal year	9,751	1,274
Prior	14,156	7,202
Revolving Loans Amortized Cost Basis	19,189	113,337
Revolving Loans Converted to Term	699	10,037
Total loans and leases, net of unearned income and deferred costs and fees	208,695	178,582
Commercial real estate | Construction | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	5,636	12,840
One year before current fiscal year	64,721	10,025
Two years before current fiscal year	67,810	16,325
Three years before current fiscal year	26,733	7,542
Four years before current fiscal year	9,751	1,274
Prior	14,156	6,559
Revolving Loans Amortized Cost Basis	19,189	112,537
Revolving Loans Converted to Term	699	10,037
Total loans and leases, net of unearned income and deferred costs and fees	208,695	177,139
Commercial real estate | Construction | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	0	0
Commercial real estate | Construction | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	643
Revolving Loans Amortized Cost Basis	0	800
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	$ 0	$ 1,443

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Allowance for Credit Losses - Credit Quality Indicators by Class of Residential Real Estate and Consumer Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans and leases, net of unearned income and deferred costs and fees	$ 5,162,503	$ 5,075,467
Residential real estate | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	1,049	2,033
One year before current fiscal year	1,166	1,142
Two years before current fiscal year	697	3,057
Three years before current fiscal year	1,132	1,600
Four years before current fiscal year	887	1,572
Prior	4,135	3,748
Revolving Loans Amortized Cost Basis	171,787	163,469
Revolving Loans Converted to Term	819	6,050
Total loans and leases, net of unearned income and deferred costs and fees	181,672	182,671
Residential real estate | Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	122,172	324,967
One year before current fiscal year	276,961	282,202
Two years before current fiscal year	251,551	162,815
Three years before current fiscal year	124,799	98,480
Four years before current fiscal year	72,068	124,914
Prior	494,112	282,193
Revolving Loans Amortized Cost Basis	0	14,135
Revolving Loans Converted to Term	0	1,205
Total loans and leases, net of unearned income and deferred costs and fees	1,341,663	1,290,911
Residential real estate | Performing | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	1,049	2,033
One year before current fiscal year	1,166	1,142
Two years before current fiscal year	697	3,041
Three years before current fiscal year	1,117	1,600
Four years before current fiscal year	887	1,572
Prior	4,060	3,144
Revolving Loans Amortized Cost Basis	169,371	161,630
Revolving Loans Converted to Term	819	6,050
Total loans and leases, net of unearned income and deferred costs and fees	179,166	180,212
Residential real estate | Performing | Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	122,172	324,967
One year before current fiscal year	276,961	282,202
Two years before current fiscal year	251,305	162,574
Three years before current fiscal year	124,191	97,778
Four years before current fiscal year	70,956	124,221
Prior	487,048	275,133
Revolving Loans Amortized Cost Basis	0	14,112
Revolving Loans Converted to Term	0	1,205
Total loans and leases, net of unearned income and deferred costs and fees	1,332,633	1,282,192
Residential real estate | Nonperforming | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	0	16
Three years before current fiscal year	15	0
Four years before current fiscal year	0	0
Prior	75	604
Revolving Loans Amortized Cost Basis	2,416	1,839
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	2,506	2,459
Residential real estate | Nonperforming | Mortgages
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	0
Two years before current fiscal year	246	241
Three years before current fiscal year	608	702
Four years before current fiscal year	1,112	693
Prior	7,064	7,060
Revolving Loans Amortized Cost Basis	0	23
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	9,030	8,719
Consumer and other | Direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	12,974	20,653
One year before current fiscal year	17,506	10,744
Two years before current fiscal year	8,478	9,441
Three years before current fiscal year	7,442	5,659
Four years before current fiscal year	5,190	4,861
Prior	8,821	10,602
Revolving Loans Amortized Cost Basis	4,622	5,436
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	65,033	67,396
Consumer and other | Indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	1,809
One year before current fiscal year	181	856
Two years before current fiscal year	189	960
Three years before current fiscal year	1,678	587
Four years before current fiscal year	952	363
Prior	196	80
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	3,196	4,655
Consumer and other | Performing | Direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	12,974	20,653
One year before current fiscal year	17,506	10,735
Two years before current fiscal year	8,475	9,397
Three years before current fiscal year	7,419	5,542
Four years before current fiscal year	5,113	4,849
Prior	8,811	10,602
Revolving Loans Amortized Cost Basis	4,619	5,435
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	64,917	67,213
Consumer and other | Performing | Indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	1,809
One year before current fiscal year	181	854
Two years before current fiscal year	189	812
Three years before current fiscal year	1,549	506
Four years before current fiscal year	915	362
Prior	187	66
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	3,021	4,409
Consumer and other | Nonperforming | Direct
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	9
Two years before current fiscal year	3	44
Three years before current fiscal year	23	117
Four years before current fiscal year	77	12
Prior	10	0
Revolving Loans Amortized Cost Basis	3	1
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	116	183
Consumer and other | Nonperforming | Indirect
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
One year before current fiscal year	0	2
Two years before current fiscal year	0	148
Three years before current fiscal year	129	81
Four years before current fiscal year	37	1
Prior	9	14
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total loans and leases, net of unearned income and deferred costs and fees	$ 175	$ 246

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Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Basic
Net income available to common shareholders	$ 20,869	$ 22,831	$ 44,142	$ 48,457
Less: income attributable to unvested stock-based compensation awards	(67)	(164)	(143)	(350)
Net earnings allocated to common shareholders	$ 20,802	$ 22,667	$ 43,999	$ 48,107
Weighted average shares outstanding, including unvested stock-based compensation awards (in shares)	14,524,975	14,886,687	14,568,102	14,899,524
Less: unvested stock-based compensation awards (in shares)	(207,560)	(231,913)	(209,633)	(234,003)
Weighted average shares outstanding - Basic (in shares)	14,317,415	14,654,774	14,358,469	14,665,521
Diluted
Net earnings allocated to common shareholders	$ 20,802	$ 22,667	$ 43,999	$ 48,107
Weighted average shares outstanding - Basic (in shares)	14,317,415	14,654,774	14,358,469	14,665,521
Plus: Incremental shares from assumed conversion of stock-based compensation awards (in shares)	70,186	82,961	74,183	82,055
Weighted average shares outstanding - Diluted (in shares)	14,387,601	14,737,735	14,432,652	14,747,576
Basic EPS (in dollars per share)	$ 1.45	$ 1.55	$ 3.06	$ 3.28
Diluted EPS (in dollars per share)	$ 1.45	$ 1.54	$ 3.05	$ 3.26

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Earnings Per Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earning per share (in shares)	1,848	477	6,113	8,187

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Other Comprehensive Income (Loss) - Schedule of Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Before-Tax Amount
Net unrealized gains/losses / Other comprehensive income (loss)	$ (56,977)	$ 12,011	$ (162,787)	$ (20,940)
Tax (Expense) Benefit
Net unrealized gains/losses / Other comprehensive income (loss)	13,957	(2,943)	39,868	5,132
Net of Tax
Change in net unrealized gain/loss during the period	(43,449)	8,489	(123,854)	(16,757)
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	429	579	935	949
Other comprehensive (loss) income	(43,020)	9,068	(122,919)	(15,808)
Net unrealized gain/loss
Before-Tax Amount
Change in net unrealized gain/loss during the period	(57,544)	11,244	(164,025)	(22,197)
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	0	0	0	(330)
Net unrealized gains/losses / Other comprehensive income (loss)	(57,544)	11,244	(164,025)	(22,527)
Tax (Expense) Benefit
Change in net unrealized gain/loss during the period	14,095	(2,755)	40,171	5,440
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	0	0	0	81
Net unrealized gains/losses / Other comprehensive income (loss)	14,095	(2,755)	40,171	5,521
Net of Tax
Change in net unrealized gain/loss during the period	(43,449)	8,489	(123,854)	(16,757)
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	0	0	0	(249)
Other comprehensive (loss) income	(43,449)	8,489	(123,854)	(17,006)
Amortization of net retirement plan actuarial gain/loss
Before-Tax Amount
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	514	712	1,129	1,476
Tax (Expense) Benefit
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	(125)	(175)	(276)	(362)
Net of Tax
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	389	537	853	1,114
Amortization of net retirement plan prior service cost
Before-Tax Amount
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	53	55	109	111
Tax (Expense) Benefit
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	(13)	(13)	(27)	(27)
Net of Tax
Reclassification adjustment for net realized loss on sale of available-for-sale debt securities included in net income	40	42	82	84
Employee benefit plans
Before-Tax Amount
Net unrealized gains/losses / Other comprehensive income (loss)	567	767	1,238	1,587
Tax (Expense) Benefit
Net unrealized gains/losses / Other comprehensive income (loss)	(138)	(188)	(303)	(389)
Net of Tax
Other comprehensive (loss) income	$ 429	$ 579	$ 935	$ 1,198

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Other Comprehensive Income (Loss) - Schedule of Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances	$ 657,492	$ 709,936	$ 728,941	$ 717,689
Other comprehensive (loss) income before reclassifications	(43,449)	8,489	(123,854)	(16,757)
Amounts reclassified from accumulated other comprehensive (loss) income	429	579	935	949
Other comprehensive (loss) income	(43,020)	9,068	(122,919)	(15,808)
Ending balances	624,318	728,253	624,318	728,253
Available-for- Sale Debt Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances	(94,965)	(4,886)	(14,560)	20,609
Other comprehensive (loss) income before reclassifications	(43,449)	8,489	(123,854)	(16,757)
Amounts reclassified from accumulated other comprehensive (loss) income	0	0	0	(249)
Other comprehensive (loss) income	(43,449)	8,489	(123,854)	(17,006)
Ending balances	(138,414)	3,603	(138,414)	3,603
Employee Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances	(40,884)	(52,064)	(41,390)	(52,683)
Other comprehensive (loss) income before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive (loss) income	429	579	935	1,198
Other comprehensive (loss) income	429	579	935	1,198
Ending balances	(40,455)	(51,485)	(40,455)	(51,485)
Accumulated Other Comprehensive (Loss) Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balances	(135,849)	(56,950)	(55,950)	(32,074)
Other comprehensive (loss) income	(43,020)	9,068	(122,919)	(15,808)
Ending balances	$ (178,869)	$ (47,882)	$ (178,869)	$ (47,882)

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Other Comprehensive Income (Loss) - Schedule of Amounts Reclassified Out of Each Component (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net (loss) gain on securities transactions	$ (37)	$ 0	$ (84)	$ 317
Tax (expense) benefit	(6,329)	(6,471)	(13,305)	(13,151)
Other operating expense	(13,029)	(10,730)	(25,049)	(21,355)
Total before tax	27,230	29,333	57,510	61,672
Net of tax	20,869	22,831	44,142	48,457
Amount Reclassified from Accumulated Other Comprehensive (Loss) Income | Available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net (loss) gain on securities transactions	0	0	0
Tax (expense) benefit	0	0	0	(81)
Total before tax				330
Net of tax	0	0	0	249
Amount Reclassified from Accumulated Other Comprehensive (Loss) Income | Net retirement plan actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other operating expense	(514)	(711)	(1,129)	(1,475)
Amount Reclassified from Accumulated Other Comprehensive (Loss) Income | Net retirement plan prior service cost
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other operating expense	(53)	(56)	(109)	(111)
Amount Reclassified from Accumulated Other Comprehensive (Loss) Income | Employee benefit plans
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Tax (expense) benefit	138	188	303	388
Total before tax	(567)	(767)	(1,238)	(1,586)
Net of tax	$ (429)	$ (579)	$ (935)	$ (1,198)

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Employee Benefit Plans - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Pension Benefits
Components of net periodic benefit cost
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	529	327	992	814
Expected return on plan assets	(1,474)	(1,411)	(2,942)	(2,826)
Amortization of net retirement plan actuarial loss	285	397	608	780
Amortization of net retirement plan prior service (credit) cost	0	0	0	0
Net periodic benefit (income) cost	(660)	(687)	(1,342)	(1,232)
Life and Health
Components of net periodic benefit cost
Service cost	43	42	87	93
Interest cost	59	36	111	90
Expected return on plan assets	0	0	0	0
Amortization of net retirement plan actuarial loss	46	82	98	156
Amortization of net retirement plan prior service (credit) cost	(15)	(15)	(30)	(30)
Net periodic benefit (income) cost	133	145	266	309
SERP Benefits
Components of net periodic benefit cost
Service cost	(13)	55	39	115
Interest cost	206	147	407	346
Expected return on plan assets	0	0	0	0
Amortization of net retirement plan actuarial loss	183	233	423	540
Amortization of net retirement plan prior service (credit) cost	68	70	139	141
Net periodic benefit (income) cost	$ 444	$ 505	$ 1,008	$ 1,142

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Employee Benefit Plans - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Retirement Benefits [Abstract]
Amortization of amounts previously recognized in accumulated other comprehensive income (loss)	$ 934,560	$ 1,200,000
Contribution to pension plan	$ 0	$ 0

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Other Income and Operating Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other Income and Expenses [Abstract]
Reporting threshold for other income and operating expenses (percent, greater than)			1.00%
Noninterest Income
Other service charges	$ 669	$ 710	$ 1,296	$ 1,379
Earnings from corporate owned life insurance	171	570	593	1,111
Net gains on the sales of loans originated for sale	53	153	57	582
Other income	348	232	771	567
Total other income	1,241	1,665	2,717	3,639
Noninterest Expenses
Marketing expense	1,456	1,132	2,513	1,627
Professional fees	1,719	1,533	3,325	3,427
Legal fees	498	221	708	441
Technology expense	3,690	2,977	7,373	5,905
Cardholder expense	1,280	875	2,422	1,662
Other expenses	4,386	3,992	8,708	8,293
Other operating expense	$ 13,029	$ 10,730	$ 25,049	$ 21,355

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Revenue Recognition - Schedule of Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	$ 18,048	$ 17,490	$ 36,920	$ 35,483
Noninterest Income (out-of-scope of ASC 606)	896	1,368	2,009	3,358
Total Noninterest Income	18,944	18,858	38,929	38,841
Commissions and Fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	7,872	7,488	15,836	15,171
Installment Billing
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	(46)	(52)	(2)	(17)
Refund of Commissions
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	10	31	(18)	11
Contract Liabilities/Deferred Revenue
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	(266)	(237)	(267)	(237)
Contingent Commissions
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	859	824	2,197	2,292
Subtotal Insurance Revenues
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	8,429	8,054	17,746	17,220
Trust and Asset Management
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	3,122	3,334	6,625	6,700
Mutual Fund & Investment Income
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	1,474	1,383	2,888	2,690
Subtotal Investment Service Income
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	4,596	4,717	9,513	9,390
Service Charges on Deposit Accounts
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	1,756	1,471	3,535	2,941
Card Services Income
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	2,959	2,951	5,502	5,334
Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, excluding assessed tax	$ 308	$ 297	$ 624	$ 598

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Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Contract assets related to contingent income	$ 1.2	$ 3.0
Contract with customer, liability	$ 3.0	1.7
Performance obligation, description of timing	one year
Insurance
Disaggregation of Revenue [Line Items]
Contract with customer, asset, net	$ 5.0	6.0
Wealth Management
Disaggregation of Revenue [Line Items]
Contract with customer, asset, net	$ 2.5	$ 2.3

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Financial Guarantees (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Guarantees [Abstract]
Obligations to extend credit for loan commitments	$ 37.5	$ 39.8

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Segment and Related Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2022 banking_Office segment office
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
Tompkins Insurance Agencies Inc
Segment Reporting Information [Line Items]
Noncontrolling interest, ownership percentage by parent	100.00%
Tompkins, Cayuga, Cortland and Schuyler Counties, New York
Segment Reporting Information [Line Items]
Nature of operations, number of banking offices	13
Wyoming, Livingston, Genessee, Orleans and Monroe, New York
Segment Reporting Information [Line Items]
Nature of operations, number of banking offices	16
Putnam Country, Dutchess Country and Westchester, New York
Segment Reporting Information [Line Items]
Nature of operations, number of banking offices	14
Berks, Montgomery, Philadelphia, Deleware and Schuylkill, Pennsylvania
Segment Reporting Information [Line Items]
Nature of operations, number of banking offices	20
Western New York
Segment Reporting Information [Line Items]
Number of offices | office	5

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Segment and Related Information - Schedule of Segment and Related Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Interest income	$ 60,953	$ 59,835	$ 120,129	$ 119,590
Interest expense	2,691	4,989	5,253	9,707
Net Interest Income	58,262	54,846	114,876	109,883
Provision for credit loss expense	856	(3,071)	336	(4,901)
Noninterest income	18,944	18,858	38,929	38,841
Noninterest expense	49,120	47,442	95,959	91,953
Income Before Income Tax Expense	27,230	29,333	57,510	61,672
Income tax expense	6,329	6,471	13,305	13,151
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation	20,901	22,862	44,205	48,521
Less: Net income attributable to noncontrolling interests	32	31	63	64
Net Income Attributable to Tompkins Financial Corporation	20,869	22,831	44,142	48,457
Depreciation and amortization	2,595	2,596	5,245	5,102
Assets	7,842,461	7,988,208	7,842,461	7,988,208		$ 7,819,982
Goodwill	92,447	92,447	92,447	92,447		92,447
Other intangibles, net	3,124	4,274	3,124	4,274		3,643
Net Loans and Leases	5,118,710	5,127,624	5,118,710	5,127,624
Deposits	6,769,521	6,837,000	6,769,521	6,837,000		6,791,435
Total Equity	624,318	728,253	624,318	728,253	$ 657,492	$ 728,941	$ 709,936	$ 717,689
Operating Segments | Banking
Segment Reporting Information [Line Items]
Interest income	60,953	59,843	120,129	119,597
Interest expense	2,692	4,997	5,255	9,716
Net Interest Income	58,261	54,846	114,874	109,881
Provision for credit loss expense	856	(3,071)	336	(4,901)
Noninterest income	6,329	6,447	12,522	12,759
Noninterest expense	39,395	37,879	76,584	73,206
Income Before Income Tax Expense	24,339	26,485	50,476	54,335
Income tax expense	5,465	5,729	11,630	11,243
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation	18,874	20,756	38,846	43,092
Less: Net income attributable to noncontrolling interests	32	31	63	64
Net Income Attributable to Tompkins Financial Corporation	18,842	20,725	38,783	43,028
Depreciation and amortization	2,515	2,527	5,093	4,965
Assets	7,786,614	7,987,751	7,786,614	7,987,751
Goodwill	64,500	64,370	64,500	64,370
Other intangibles, net	1,236	1,994	1,236	1,994
Net Loans and Leases	5,118,710	5,127,624	5,118,710	5,127,624
Deposits	6,786,754	6,851,924	6,786,754	6,851,924
Total Equity	563,994	667,007	563,994	667,007
Operating Segments | Insurance
Segment Reporting Information [Line Items]
Interest income	1	0	2	2
Interest expense	0	0	0	0
Net Interest Income	1	0	2	2
Provision for credit loss expense	0	0	0	0
Noninterest income	8,573	8,163	18,007	17,581
Noninterest expense	6,812	6,760	13,314	13,197
Income Before Income Tax Expense	1,762	1,403	4,695	4,386
Income tax expense	494	401	1,310	1,203
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation	1,268	1,002	3,385	3,183
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net Income Attributable to Tompkins Financial Corporation	1,268	1,002	3,385	3,183
Depreciation and amortization	44	55	88	110
Assets	47,222	46,590	47,222	46,590
Goodwill	19,866	19,866	19,866	19,866
Other intangibles, net	1,830	2,201	1,830	2,201
Net Loans and Leases	0	0	0	0
Deposits	0	0	0	0
Total Equity	34,860	33,101	34,860	33,101
Operating Segments | Wealth Management
Segment Reporting Information [Line Items]
Interest income	0	0	0	0
Interest expense	0	0	0	0
Net Interest Income	0	0	0	0
Provision for credit loss expense	0	0	0	0
Noninterest income	4,598	4,808	9,532	9,591
Noninterest expense	3,469	3,363	7,193	6,640
Income Before Income Tax Expense	1,129	1,445	2,339	2,951
Income tax expense	370	341	365	705
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation	759	1,104	1,974	2,246
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net Income Attributable to Tompkins Financial Corporation	759	1,104	1,974	2,246
Depreciation and amortization	36	14	64	27
Assets	26,915	30,435	26,915	30,435
Goodwill	8,081	8,211	8,081	8,211
Other intangibles, net	58	79	58	79
Net Loans and Leases	0	0	0	0
Deposits	(847)	0	(847)	0
Total Equity	25,464	28,145	25,464	28,145
Intercompany
Segment Reporting Information [Line Items]
Interest income	(1)	(8)	(2)	(9)
Interest expense	(1)	(8)	(2)	(9)
Net Interest Income	0	0	0	0
Provision for credit loss expense	0	0	0	0
Noninterest income	(556)	(560)	(1,132)	(1,090)
Noninterest expense	(556)	(560)	(1,132)	(1,090)
Income Before Income Tax Expense	0	0	0	0
Income tax expense	0	0	0	0
Net Income Attributable to Noncontrolling Interests and Tompkins Financial Corporation	0	0	0	0
Less: Net income attributable to noncontrolling interests	0	0	0	0
Net Income Attributable to Tompkins Financial Corporation	0	0	0	0
Depreciation and amortization	0	0	0	0
Assets	(18,290)	(76,568)	(18,290)	(76,568)
Goodwill	0	0	0	0
Other intangibles, net	0	0	0	0
Net Loans and Leases	0	0	0	0
Deposits	(16,386)	(14,924)	(16,386)	(14,924)
Total Equity	$ 0	$ 0	$ 0	$ 0

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Fair Value Measurements - Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value	$ 818	$ 902
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	1,891,718	2,044,513
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | U.S. Treasuries | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | U.S. Treasuries | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	174,102	157,834
Recurring | U.S. Treasuries | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | Obligations of U.S. Government sponsored entities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | Obligations of U.S. Government sponsored entities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	793,493	832,373
Recurring | Obligations of U.S. Government sponsored entities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | Obligations of U.S. states and political subdivisions | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | Obligations of U.S. states and political subdivisions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	88,078	104,169
Recurring | Obligations of U.S. states and political subdivisions | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | U.S. Government agencies | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | U.S. Government agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	59,114	77,157
Recurring | U.S. Government agencies | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | U.S. Government sponsored entities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | U.S. Government sponsored entities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	774,571	870,556
Recurring | U.S. Government sponsored entities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | U.S. corporate debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | U.S. corporate debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	2,360	2,424
Recurring | U.S. corporate debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	0	0
Recurring | Equity securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value	0	0
Recurring | Equity securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value	0	0
Recurring | Equity securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value	818	902
Recurring | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	1,891,718	2,044,513
Recurring | Fair Value | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	174,102	157,834
Recurring | Fair Value | Obligations of U.S. Government sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	793,493	832,373
Recurring | Fair Value | Obligations of U.S. states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	88,078	104,169
Recurring | Fair Value | U.S. Government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	59,114	77,157
Recurring | Fair Value | U.S. Government sponsored entities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	774,571	870,556
Recurring | Fair Value | U.S. corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	2,360	2,424
Recurring | Fair Value | Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities, at fair value	$ 818	$ 902

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Fair Value Measurements - Schedule of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-Recurring - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	$ 814	$ 8,922	$ 1,320	$ 31,619
Gain (losses) from fair value changes on impaired loans	59	0	59	0
Other real estate owned	33		33
Gain (losses) from fair value changes on other real estate owned	0		22
Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	0	0	0	0
Other real estate owned	0		0
Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	0	8,922	0	31,619
Other real estate owned	33		33
Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually evaluated loans	814	$ 0	1,320	$ 0
Other real estate owned	$ 0		$ 0

XML

Fair Value Measurements - Additional Information (Details)	Jun. 30, 2022
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling and closing costs as percentage of appraised value	5.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling and closing costs as percentage of appraised value	8.00%

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Fair Value Measurements - Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial Assets:
Securities - held-to-maturity	$ 274,660	$ 282,288
FHLB and other stock	17,913	10,996
Financial Liabilities:
Time deposits	594,853	639,674
under agreements to repurchase	50,075	66,787
Other borrowings	295,600	124,000
Level 1
Financial Assets:
Cash and cash equivalents	80,392	63,107
Securities - held-to-maturity	0
FHLB and other stock	0	0
Accrued interest receivable	0	0
Loans/leases, net	0	0
Financial Liabilities:
Time deposits	0	0
Other deposits	0	0
under agreements to repurchase	0	0
Other borrowings	0	0
Accrued interest payable	0	0
Level 2
Financial Assets:
Cash and cash equivalents	0	0
Securities - held-to-maturity	274,660
FHLB and other stock	17,913	10,996
Accrued interest receivable	22,420	22,597
Loans/leases, net	0	0
Financial Liabilities:
Time deposits	585,487	641,517
Other deposits	6,174,668	6,151,761
under agreements to repurchase	50,075	66,787
Other borrowings	294,234	125,700
Accrued interest payable	815	901
Level 3
Financial Assets:
Cash and cash equivalents	0	0
Securities - held-to-maturity	0
FHLB and other stock	0	0
Accrued interest receivable	0	0
Loans/leases, net	4,958,348	5,028,734
Financial Liabilities:
Time deposits	0	0
Other deposits	0	0
under agreements to repurchase	0	0
Other borrowings	0	0
Accrued interest payable	0	0
Carrying Amount
Financial Assets:
Cash and cash equivalents	80,392	63,107
Securities - held-to-maturity	312,315
FHLB and other stock	17,913	10,996
Accrued interest receivable	22,420	22,597
Loans/leases, net	5,118,710	5,032,624
Financial Liabilities:
Time deposits	594,853	639,674
Other deposits	6,174,668	6,151,761
under agreements to repurchase	50,075	66,787
Other borrowings	295,600	124,000
Accrued interest payable	815	901
Fair Value
Financial Assets:
Cash and cash equivalents	80,392	63,107
Securities - held-to-maturity	274,660
FHLB and other stock	17,913	10,996
Accrued interest receivable	22,420	22,597
Loans/leases, net	4,958,348	5,028,734
Financial Liabilities:
Time deposits	585,487	641,517
Other deposits	6,174,668	6,151,761
under agreements to repurchase	50,075	66,787
Other borrowings	294,234	125,700
Accrued interest payable	$ 815	$ 901

XML

Derivatives and Hedging Activities - Derivative Instruments in Statement of Financial Position (Details) - Not Designated as Hedging Instrument $ in Thousands	Jun. 30, 2022 USD ($)
Derivatives, Fair Value [Line Items]
Notional Amount
Fair Value	37
Interest Rate Products | Other Liabilities
Derivatives, Fair Value [Line Items]
Notional Amount	0
Fair Value	0
Other Contracts | Other Liabilities
Derivatives, Fair Value [Line Items]
Notional Amount	7,499
Fair Value	$ 37

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Derivatives and Hedging Activities - Derivative Instruments in Statement of Income (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 41
Interest Rate Products | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	0
Other Contracts | Other Income
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 41