Loans (Tables)

6 Months Ended

Jun. 30, 2022

Loans and Leases Receivable Disclosure [Abstract]

Loan Portfolio

The Company’s loan portfolio consisted of the following as of the dates indicated (in thousands):

	Principal Amount Outstanding		Net Deferred Loan (Fees) Costs			Loans, Net
June 30, 2022
Commercial business	$	610,587	$	515		$	611,102
Commercial mortgage		1,451,016		(2,864	)		1,448,152
Residential real estate loans		561,155		13,629			574,784
Residential real estate lines		72,972		3,136			76,108
Consumer indirect		1,000,252		38,999			1,039,251
Other consumer		14,508		113			14,621
Total	$	3,710,490	$	53,528			3,764,018
Allowance for credit losses - loans							(42,452	)
Total loans, net						$	3,721,566
December 31, 2021
Commercial business	$	639,368	$	(1,075	)	$	638,293
Commercial mortgage		1,415,486		(2,698	)		1,412,788
Residential real estate loans		563,579		13,720			577,299
Residential real estate lines		75,515		3,016			78,531
Consumer indirect		923,052		34,996			958,048
Other consumer		14,355		122			14,477
Total	$	3,631,355	$	48,081			3,679,436
Allowance for credit losses - loans							(39,676	)
Total loans, net						$	3,639,760

Recorded Investment by Loan Class in Current and Nonaccrual Loans

The Company’s recorded investment, by loan class, in current and nonaccrual loans, as well as an analysis of accruing delinquent loans is set forth as of the dates indicated (in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Nonaccrual		Current		Total Loans		Nonaccrual with no allowance
June 30, 2022
Commercial business	$	108	$	1,392	$	—	$	1,500	$	422	$	608,665	$	610,587	$	369
Commercial mortgage		15		—		—		15		836		1,450,165		1,451,016		806
Residential real estate loans		1,052		129		—		1,181		2,738		557,236		561,155		2,738
Residential real estate lines		97		23		—		120		160		72,692		72,972		160
Consumer indirect		7,668		1,814		—		9,482		2,389		988,381		1,000,252		2,389
Other consumer		94		—		—		94		3		14,411		14,508		3
Total loans, gross	$	9,034	$	3,358	$	—	$	12,392	$	6,548	$	3,691,550	$	3,710,490	$	6,465
December 31, 2021
Commercial business	$	659	$	34	$	797	$	1,490	$	602	$	637,276	$	639,368	$	477
Commercial mortgage		69		—		—		69		6,414		1,409,003		1,415,486		781
Residential real estate loans		1,148		141		—		1,289		2,373		559,917		563,579		2,373
Residential real estate lines		18		3		—		21		200		75,294		75,515		200
Consumer indirect		5,706		770		—		6,476		1,780		914,796		923,052		1,780
Other consumer		121		1		—		122		—		14,233		14,355		—
Total loans, gross	$	7,721	$	949	$	797	$	9,467	$	11,369	$	3,610,519	$	3,631,355	$	5,611

Summary of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral dependent loans by collateral type as of June 30, 2022 and December 31, 2021 (in thousands):

	Collateral type
	Business assets		Real property		Total		Specific Reserve
June 30, 2022
Commercial business	$	205	$	974	$	1,179	$	237
Commercial mortgage		—		22,764		22,764		2,698
Total	$	205	$	23,738	$	23,943	$	2,935
December 31, 2021
Commercial business	$	326	$	993	$	1,319	$	1,055
Commercial mortgage		—		37,936		37,936		4,716
Total	$	326	$	38,929	$	39,255	$	5,771

Commercial Loan Portfolio Categorized by Internally Assigned Asset Classification

The following tables set forth the Company’s commercial loan portfolio, categorized by internally assigned asset classification, as of the dates indicated (in thousands):

	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
June 30, 2022
Commercial Business
Uncriticized	$	54,182	$	124,276	$	87,077	$	35,324	$	38,282	$	30,569	$	231,868	$	—	$	601,578
Special mention		220		2,342		12		194		140		—		1,185		—		4,093
Substandard		—		41		25		175		562		1,377		3,251		—		5,431
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	54,402	$	126,659	$	87,114	$	35,693	$	38,984	$	31,946	$	236,304	$	—	$	611,102
Commercial Mortgage
Uncriticized	$	173,305	$	357,855	$	295,281	$	172,506	$	120,731	$	254,463	$	3,664	$	—	$	1,377,805
Special mention		—		484		2,370		14,489		195		29,083		—		—		46,621
Substandard		2,862		348		106		83		9,979		10,348		—		—		23,726
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	176,167	$	358,687	$	297,757	$	187,078	$	130,905	$	293,894	$	3,664	$	—	$	1,448,152

	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
December 31, 2021
Commercial Business
Uncriticized	$	141,925	$	91,338	$	68,433	$	42,631	$	24,847	$	12,033	$	248,338	$	—	$	629,545
Special mention		—		132		166		44		180		1,344		1,993		—		3,859
Substandard		45		256		169		745		415		49		3,210		—		4,889
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	141,970	$	91,726	$	68,768	$	43,420	$	25,442	$	13,426	$	253,541	$	—	$	638,293
Commercial Mortgage
Uncriticized	$	342,483	$	339,988	$	176,753	$	147,247	$	128,381	$	167,739	$	3,712	$	—	$	1,306,303
Special mention		11,184		2,450		29,759		2,344		8,269		27,635		—		—		81,641
Substandard		1,001		77		2,950		11,607		3,209		6,000		—		—		24,844
Doubtful		—		—		—		—		—		—		—		—		—
Total	$	354,668	$	342,515	$	209,462	$	161,198	$	139,859	$	201,374	$	3,712	$	—	$	1,412,788

Retail Loan Portfolio Categorized by Performance Status

The following tables set forth the Company’s retail loan portfolio, categorized by performance status, as of the dates indicated (in thousands):

	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
June 30, 2022
Residential Real Estate Loans
Performing	$	36,245	$	90,439	$	124,169	$	80,774	$	59,763	$	180,656	$	—	$	—	$	572,046
Nonperforming		—		79		175		657		556		1,271		—		—		2,738
Total	$	36,245	$	90,518	$	124,344	$	81,431	$	60,319	$	181,927	$	—	$	—	$	574,784
Residential Real Estate Lines
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	68,620	$	7,328	$	75,948
Nonperforming		—		—		—		—		—		—		36		124		160
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	68,656	$	7,452	$	76,108
Consumer Indirect
Performing	$	308,856	$	392,357	$	157,720	$	79,474	$	57,651	$	40,804	$	—	$	—	$	1,036,862
Nonperforming		48		1,208		413		339		261		120		—		—		2,389
Total	$	308,904	$	393,565	$	158,133	$	79,813	$	57,912	$	40,924	$	—	$	—	$	1,039,251
Other Consumer
Performing	$	3,292	$	3,511	$	2,806	$	1,164	$	424	$	667	$	2,754	$	—	$	14,618
Nonperforming		—		—		—		3		—		—		—		—		3
Total	$	3,292	$	3,511	$	2,806	$	1,167	$	424	$	667	$	2,754	$	—	$	14,621

	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
December 31, 2021
Residential Real Estate Loans
Performing	$	92,620	$	129,240	$	85,876	$	65,866	$	50,932	$	150,392	$	—	$	—	$	574,926
Nonperforming		79		55		225		557		899		558		—		—		2,373
Total	$	92,699	$	129,295	$	86,101	$	66,423	$	51,831	$	150,950	$	—	$	—	$	577,299
Residential Real Estate Lines
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	70,521	$	7,810	$	78,331
Nonperforming		—		—		—		—		—		—		39		161		200
Total	$	—	$	—	$	—	$	—	$	—	$	—	$	70,560	$	7,971	$	78,531
Consumer Indirect
Performing	$	452,601	$	206,472	$	122,849	$	90,998	$	51,598	$	31,750	$	—	$	—	$	956,268
Nonperforming		417		515		436		230		136		46		—		—		1,780
Total	$	453,018	$	206,987	$	123,285	$	91,228	$	51,734	$	31,796	$	—	$	—	$	958,048
Other Consumer
Performing	$	4,422	$	3,738	$	1,681	$	763	$	280	$	1,044	$	2,549	$	—	$	14,477
Nonperforming		—		—		—		—		—		—		—		—		—
Total	$	4,422	$	3,738	$	1,681	$	763	$	280	$	1,044	$	2,549	$	—	$	14,477

Changes in the Allowance for Loan Losses

The following table sets forth the changes in the allowance for credit losses - loans for the three- and six- month periods ended June 30, 2022 and 2021 (in thousands):

	Commercial Business			Commercial Mortgage			Residential Real Estate Loans			Residential Real Estate Lines			Consumer Indirect			Other Consumer			Total
Three months ended June 30, 2022
Beginning balance	$	10,121		$	13,746		$	1,852		$	425		$	14,568		$	254		$	40,966
Charge-offs		(191	)		—			(56	)		—			(2,672	)		(309	)		(3,228	)
Recoveries		101			2,018			10			12			2,025			102			4,268
Provision (benefit)		109			(3,700	)		334			72			3,411			220			446
Ending balance	$	10,140		$	12,064		$	2,140		$	509		$	17,332		$	267		$	42,452
Six months ended June 30, 2022
Beginning balance	$	11,099		$	14,777		$	1,604		$	379		$	11,611		$	206		$	39,676
Charge-offs		(242	)		—			(56	)		—			(5,158	)		(685	)		(6,141	)
Recoveries		189			2,019			15			17			3,961			193			6,394
(Benefit) provision		(906	)		(4,732	)		577			113			6,918			553			2,523
Ending balance	$	10,140		$	12,064		$	2,140		$	509		$	17,332		$	267		$	42,452
	Commercial Business			Commercial Mortgage			Residential Real Estate Loans			Residential Real Estate Lines			Consumer Indirect			Other Consumer			Total
Three months ended June 30, 2021
Beginning balance	$	12,670		$	22,672		$	3,109		$	482		$	10,557		$	338		$	49,828
Charge-offs		(92	)		—			(56	)		—			(1,157	)		(424	)		(1,729	)
Recoveries		379			7			59			—			1,583			95			2,123
(Benefit) provision		(1,952	)		(1,017	)		(813	)		(87	)		(235	)		247			(3,857	)
Ending balance	$	11,005		$	21,662		$	2,299		$	395		$	10,748		$	256		$	46,365
Six months ended June 30, 2021
Beginning balance		13,580			21,763			3,924			674			12,165			314			52,420
Charge-offs		(178	)		(203	)		(67	)		(70	)		(3,570	)		(505	)		(4,593	)
Recoveries		617			7			64			—			3,253			159			4,100
(Benefit) provision		(3,014	)		95			(1,622	)		(209	)		(1,100	)		288			(5,562	)
Ending balance	$	11,005		$	21,662		$	2,299		$	395		$	10,748		$	256		$	46,365