LOANS (Tables)

12 Months Ended

Dec. 31, 2016

Accounts, Notes, Loans and Financing Receivable [Line Items]

The balances of these classes at December 31 are summarized as follows:

(000's omitted)	2016			2015
Consumer mortgage	$	1,819,701		$	1,769,754
Business lending		1,490,076			1,497,271
Consumer indirect		1,044,972			935,760
Consumer direct		191,815			195,076
Home equity		401,998			403,514
Gross loans, including deferred origination costs		4,948,562			4,801,375
Allowance for loan losses		(47,233	)		(45,401	)
Loans, net of allowance for loan losses	$	4,901,329		$	4,755,974

Summary of Aggregate Amounts Loaned to Related Parties

Following is a summary of the aggregate amount of such loans during 2016 and 2015.

(000's omitted)	2016			2015
Balance at beginning of year	$	11,337		$	8,928
New loans		4,959			5,138
Payments		(5,346	)		(2,729	)
Balance at end of year	$	10,950		$	11,337

Outstanding Principal Balance and Related Carrying Amount of Acquired Loans

The outstanding principal balance and the related carrying amount of acquired loans included in the Consolidated Statement of Condition at December 31 are as follows:

(000's omitted)	2016		2015
Credit impaired acquired loans:
Outstanding principal balance	$	6,354	$	8,339
Carrying amount		5,553		7,299

Non-impaired acquired loans:
Outstanding principal balance		497,308		620,942
Carrying amount		489,807		610,355

Total acquired loans:
Outstanding principal balance		503,662		629,281
Carrying amount		495,360		617,654

Schedule of Accretable Discount Related to Credit Impaired Acquired Loans

The changes in the accretable discount related to the credit impaired acquired loans are as follows:

(000's omitted)	2016			2015
Balance at beginning of year	$	810		$	705
Oneida acquisition		0			341
Accretion recognized		(455	)		(552	)
Net reclassification to accretable from nonaccretable		143			316
Balance at end of year	$	498		$	810

Aged Analysis of Past Due Loans by Class

The following is an aged analysis of the Company’s past due loans by class as of December 31, 2016:

Legacy Loans (excludes loans acquired after January 1, 2009)

(000’s omitted)	Past Due 30 - 89 days		90+ Days Past Due and Still Accruing		Nonaccrual		Total Past Due		Current		Total Loans
Consumer mortgage	$	11,379	$	1,180	$	11,352	$	23,911	$	1,635,849	$	1,659,760
Business lending		3,921		145		3,811		7,877		1,269,789		1,277,666
Consumer indirect		13,883		166		0		14,049		1,000,776		1,014,825
Consumer direct		1,549		58		0		1,607		180,315		181,922
Home equity		1,250		414		1,437		3,101		315,928		319,029
Total	$	31,982	$	1,963	$	16,600	$	50,545	$	4,402,657	$	4,453,202

Acquired Loans (includes loans acquired after January 1, 2009)

(000’s omitted)	Past Due 30 - 89 days		90+ Days Past Due and Still Accruing		Nonaccrual		Total Past Due		Acquired Impaired⁽¹⁾		Current		Total Loans
Consumer mortgage	$	1,539	$	205	$	2,332	$	4,076	$	0	$	155,865	$	159,941
Business lending		528		0		1,252		1,780		5,553		205,077		212,410
Consumer indirect		231		3		0		234		0		29,913		30,147
Consumer direct		231		0		0		231		0		9,662		9,893
Home equity		778		905		435		2,118		0		80,851		82,969
Total	$	3,307	$	1,113	$	4,019	$	8,439	$	5,553	$	481,368	$	495,360

⁽¹⁾

Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans.

The following is an aged analysis of the Company’s past due loans by class as of December 31, 2015:

Legacy Loans (excludes loans acquired after January 1, 2009)

(000’s omitted)	Past Due 30 - 89 days		90+ Days Past Due and Still Accruing		Nonaccrual		Total Past Due		Current		Total Loans
Consumer mortgage	$	10,482	$	1,411	$	11,394	$	23,287	$	1,558,171	$	1,581,458
Business lending		4,442		126		5,381		9,949		1,223,679		1,233,628
Consumer indirect		11,575		102		0		11,677		878,662		890,339
Consumer direct		1,414		51		1		1,466		176,585		178,051
Home equity		1,093		111		2,029		3,233		297,012		300,245
Total	$	29,006	$	1,801	$	18,805	$	49,612	$	4,134,109	$	4,183,721

Acquired Loans (includes loans acquired after January 1, 2009)

(000’s omitted)	Past Due 30 - 89 days		90+ Days Past Due and Still Accruing		Nonaccrual		Total Past Due		Acquired Impaired⁽¹⁾		Current		Total Loans
Consumer mortgage	$	1,373	$	394	$	1,396	$	3,163	$	0	$	185,133	$	188,296
Business lending		535		0		1,186		1,721		7,299		254,623		263,643
Consumer indirect		245		0		0		245		0		45,176		45,421
Consumer direct		140		0		14		154		0		16,871		17,025
Home equity		636		0		327		963		0		102,306		103,269
Total	$	2,929	$	394	$	2,923	$	6,246	$	7,299	$	604,109	$	617,654

⁽¹⁾

Summary of Non-Business Impaired Loans

A summary of individually evaluated impaired loans as of December 31, 2016 and 2015 is as follows:

(000’s omitted)	2016		2015
Loans with allowance allocation	$	1,109	$	0
Loans without allowance allocation		556		2,376
Carrying balance		1,665		2,376
Contractual balance		3,340		3,419
Specifically allocated allowance		477		0
Average impaired loans		4,683		2,922
Interest income recognized		0		0

Troubled Debt Restructurings on Financing Receivables

Information regarding TDRs as of December 31, 2016 and December 31, 2015 is as follows

	December 31, 2016												December 31, 2015
(000’s omitted)	Nonaccrual				Accruing				Total				Nonaccrual				Accruing				Total
		#	Amount			#	Amount			#	Amount			#	Amount			#	Amount			#	Amount
Consumer mortgage		36	$	1,520		45	$	1,956		81	$	3,476		37	$	1,472		54	$	2,486		91	$	3,958
Business lending		6		91		5		690		11		781		8		217		6		737		14		954
Consumer indirect		0		0		78		771		78		771		0		0		77		691		77		691
Consumer direct		0		0		23		65		23		65		0		0		32		37		32		37
Home equity		14		221		7		216		21		437		10		203		14		301		24		504
Total		56	$	1,832		158	$	3,698		214	$	5,530		55	$	1,892		183	$	4,252		238	$	6,144

The following table presents information related to loans modified in a TDR during the years ended December 31, 2016 and 2015. Of the loans noted in the table below, all loans for the years ended December 31, 2016 and December 31, 2015, were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial.

	December 31, 2016				December 31, 2015
(000’s omitted)		#	Amount			#	Amount
Consumer mortgage		9	$	597		21	$	1,374
Business lending		0		0		3		67
Consumer indirect		33		459		35		349
Consumer direct		3		51		6		11
Home equity		3		50		6		63
Total		48	$	1,157		71	$	1,864

Schedule of Allowance for Loan Losses by Class

The following presents by class the activity in the allowance for loan losses:

(000’s omitted)	Consumer Mortgage			Business Lending			Consumer Indirect			Consumer Direct			Home Equity			Unallocated			Acquired Impaired			Total
Balance at December 31, 2014	$	10,286		$	15,787		$	11,544		$	3,083		$	2,701		$	1,767		$	173		$	45,341
Charge-offs		(1,374	)		(2,146	)		(6,714	)		(1,490	)		(244	)		0			(103	)		(12,071	)
Recoveries		80			877			3,943			722			62			0			0			5,684
Provision		1,206			1,231			3,649			682			147			(566	)		98			6,447
Balance at December 31, 2015		10,198			15,749			12,422			2,997			2,666			1,201			168			45,401
Charge-offs		(647	)		(1,872	)		(7,643	)		(1,706	)		(218	)		0			(97	)		(12,183	)
Recoveries		115			616			4,168			901			139			0			0			5,939
Provision		428			2,727			4,835			787			(188	)		(550	)		37			8,076
Balance at December 31, 2016	$	10,094		$	17,220		$	13,782		$	2,979		$	2,399		$	651		$	108		$	47,233

Business Lending [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Loans by Credit Quality Indicator

The following table shows the amount of business lending loans by credit quality category:

	December 31, 2016						December 31, 2015
(000’s omitted)	Legacy		Acquired		Total		Legacy		Acquired		Total
Pass	$	1,051,005	$	162,165	$	1,213,170	$	1,048,364	$	219,374	$	1,267,738
Special mention		135,602		29,690		165,292		124,768		20,007		144,775
Classified		90,585		15,002		105,587		60,181		16,963		77,144
Doubtful		474		0		474		315		0		315
Acquired impaired		0		5,553		5,553		0		7,299		7,299
Total	$	1,277,666	$	212,410	$	1,490,076	$	1,233,628	$	263,643	$	1,497,271

All Other Loans [Member]

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Loans by Credit Quality Indicator

The following tables detail the balances in all loan categories except for business lending at December 31, 2016:

Legacy loans (excludes loans acquired after January 1, 2009)

(000’s omitted)	Consumer Mortgage		Consumer Indirect		Consumer Direct		Home Equity		Total
Performing	$	1,647,228	$	1,014,659	$	181,864	$	317,178	$	3,160,929
Nonperforming		12,532		166		58		1,851		14,607
Total	$	1,659,760	$	1,014,825	$	181,922	$	319,029	$	3,175,536

Acquired loans (includes loans acquired after January 1, 2009)

(000’s omitted)	Consumer Mortgage		Consumer Indirect		Consumer Direct		Home Equity		Total
Performing	$	157,404	$	30,144	$	9,893	$	81,629	$	279,070
Nonperforming		2,537		3		0		1,340		3,880
Total	$	159,941	$	30,147	$	9,893	$	82,969	$	282,950

The following table details the balances in all other loan categories at December 31, 2015:

Legacy loans (excludes loans acquired after January 1, 2009)

(000’s omitted)	Consumer Mortgage		Consumer Indirect		Consumer Direct		Home Equity		Total
Performing	$	1,568,653	$	890,237	$	177,999	$	298,105	$	2,934,994
Nonperforming		12,805		102		52		2,140		15,099
Total	$	1,581,458	$	890,339	$	178,051	$	300,245	$	2,950,093

Acquired loans (includes loans acquired after January 1, 2009)

(000’s omitted)	Consumer Mortgage		Consumer Indirect		Consumer Direct		Home Equity		Total
Performing	$	186,506	$	45,421	$	17,011	$	102,942	$	351,880
Nonperforming		1,790		0		14		327		2,131
Total	$	188,296	$	45,421	$	17,025	$	103,269	$	354,011