10-K/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

FORM 10-K/A

(Amendment No. 1)

x	ANNUALREPORTPURSUANTTO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF1934
For the fiscal year ended December 31, 2011
o	TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF 1934
For the transition period from to
Commission file number 001-13695

 COMMUNITY BANK SYSTEM, INC.

           (Exact name of registrant as specified in its charter)

Delaware		16-1213679
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
5790 Widewaters Parkway, DeWitt, New York		13214-1883
(Address of principal executive offices)		(Zip Code)
	(315) 445-2282
Registrant's telephone number, including area code
Securities registered pursuant of Section 12(b) of the Act:
Title of each class		Name of each exchange on which registered
Common Stock, Par Value $1.00		New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes   x  No  o.
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes   o  No  x .
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   x    No  o.
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes   x   No  o.
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment of this Form 10-K.   o.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   x	Accelerated filer  o	Non-accelerated filer  o	Smaller reporting company  o.
		(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes   o. No  x .
The aggregate market value of the common stock, $1.00 par value, held by non-affiliates of the registrant computed by reference to the closing price as of the close of business on June 30, 2011 (the registrant’s most recently completed second fiscal quarter): $858,986,069.
The number of shares of the common stock, $1.00 par value, outstanding as of the close of business on January 31, 2012: 39,196,328 shares

DOCUMENTS INCORPORATED BY REFERENCE.

Portions of the Definitive Proxy Statement for the Annual Meeting of the Shareholders to be held on May 9, 2012 (the “Proxy Statement”) is incorporated by reference in Part III of this Annual Report on Form 10-K.

EXPLANATORY NOTE FOR FORM 10-K/A

The purpose of this Amendment No. 1 (“Amendment No. 1”) to our annual report on Form 10-K for the fiscal year ended December 31, 2011, as originally filed with the Securities and Exchange Commission (the “SEC”) on February 29, 2012 (the “Form 10-K”), is solely to restate our Index to Exhibits and to furnish our eXtensible Business Report Language (“XBRL”) interactive data files in Exhibit 101 as required by Rule 405 of Regulation S-T.  As permitted by Rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 to this Form 10-K may be furnished by amendment within 30 days of the original filing date for the Form 10-K.

No other changes have been made to the Form 10-K other than those described above.  This Amendment No. 1 does not reflect subsequent events occurring after the original filing date for the Form 10-K or modify or update in any way disclosures made in Form 10-K.

Item 15.  Exhibits, Financial Statement Schedules

INDEX TO EXHIBITS.

The exhibits filed as part of this report and exhibits incorporated herein by reference to other documents are listed below:

2.1 Agreement and Plan of Merger, dated August 2, 2006, by and among Community Bank System, Inc., Seneca Acquisition Corp. and ONB Corporation.  Incorporated by reference to Exhibit 2.2 to the Quarterly Report on Form 10-Q filed on November 8, 2006 (Registration No. 001-13695).

2.2 Agreement and Plan of Merger dated April 20, 2006, by and among Community Bank System, Inc., ESL Acquisition Corp., and ES&L Bancorp, Inc.  Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on April 25, 2006 (Registration No. 001-13695).

2.3 Purchase and Assumption Agreement, dated June 24, 2008, by and among RBS Citizens, NA., Community Bank System, Inc., and Community Bank, N.A.  Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on June 26, 2008 (Registration No. 001-13695).

2.4 Agreement and Plan of Merger, dated October 22, 2010, by and among Community Bank System, Inc. and The Wilber Corporation.   Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on October 25, 2010 (Registration No. 001-13695).

3.1 Certificate of Incorporation of Community Bank System, Inc., as amended.  Incorporated by reference to Exhibit No. 3.1 to the Registration Statement on Form S-4 filed on October 20, 2000 (Registration No. 333-48374).

3.2 Certificate of Amendment of Certificate of Incorporation of Community Bank System, Inc. Incorporated by reference to Exhibit No. 3.1 to the Quarterly Report on Form 10-Q filed on May 5, 2004 (Registration No. 001-13695).

3.3 Bylaws of Community Bank System, Inc., amended July 18, 2007.  Incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on July 24, 2007. (Registration No. 001-13695).

4.1 Form of Common Stock Certificate.  Incorporated by reference to Exhibit No. 4.1 to the Amendment No. 1 to the Registration Statement on Form S-3 filed on September 29, 2008 (Registration No. 333-153403).

10.1 Supplemental Retirement Plan Agreement, effective as of December 31, 2008, by and among Community Bank, N.A., Community Bank System, Inc. and Mark E. Tryniski.  Incorporated by reference to Exhibit No. 10.2 to the Current Report on Form 8-K filed on March 19, 2009 (Registration No. 001-13695).**

10.2 Indenture dated as of December 8, 2006, between Community Bank System, Inc. and Wilmington Trust Company, as trustee.  Incorporated by reference to Exhibit No. 4.1 to the Current Report on Form 8-K filed on December 12, 2006 (Registration No. 001-13695).

10.3 Amended and Restated Declaration of Trust dated as of December 8, 2006, among Community Bank System, Inc., as sponsor, Wilmington Trust Company, as Delaware trustee, Wilmington Trust Company, as institutional trustee, and Mark E. Tryniski, Scott A. Kingsley, and Joseph J. Lemchak as administrators.  Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on December 12, 2006 (Registration No. 001-13695).

10.4 Guarantee Agreement dated as of December 8, 2006, between Community Bank System, Inc., as guarantor, and Wilmington Trust Company, as guarantee trustee.  Incorporated by reference to Exhibit 10.1 to the Form 8-K filed on December 12, 2006 (Registration No. 001-13695).

10.5 Employment Agreement, effective January 1, 2012, by and between Community Bank System, Inc., Community Bank, N.A. and Mark E. Tryniski. Incorporated by reference to Exhibit No. 10.1 to the Current Report on Form 8-K filed on December 30, 2011 (Registration No. 001-13695). **

10.6 Post-2004 Supplemental Retirement Agreement, effective January 1, 2005, by and between Community Bank System, Inc., Community Bank, N.A. and Sanford Belden.  Incorporated by reference to Exhibit No. 10.2 to the Annual Report on Form 10-K filed on March 15, 2005 (Registration No. 001-13695).   **

10.7 Pre-2005 Supplemental Retirement Agreement, effective December 31, 2004, by and between Community Bank System, Inc., Community Bank, N.A. and Sanford Belden.  Incorporated by reference to Exhibit No. 10.3 to the Annual Report on Form 10-K filed on March 15, 2005 (Registration No. 001-13695).**

10.8 Supplemental Retirement Plan Agreement, effective September 29, 2009, by and between Community Bank System Inc., Community Bank, N.A., and Scott A. Kingsley.   Incorporated by reference to Exhibit No. 10.1 to the Current Report on Form 8-K filed on October 1, 2009 (Registration No. 001-13695).  **

10.9 Employment Agreement, effective January 29, 2010, by and between Community Bank System, Inc., Community Bank N.A. and Brian D. Donahue.   Incorporated by reference to Exhibit No. 10.1 to the Current Report on Form 8-K filed on February 3, 2010 (Registration No. 001-13695).  **

10.10 Supplemental Retirement Plan Agreement, effective March 26, 2003, by and between Community Bank System Inc. and Thomas McCullough.   Incorporated by reference to Exhibit No. 10.11 to the Annual Report on Form 10-K filed on March 12, 2004 (Registration No. 001-13695). **

10.11 2004 Long-Term Incentive Compensation Program, as to be amended.  Incorporated by reference to Exhibit No. 10.1 to the Current Report on Form 8-K filed on May 12, 2011 (Registration No. 001-13695). **

10.12 Stock Balance Plan for Directors, as amended.  Incorporated by reference to Annex I to the Definitive Proxy Statement on Schedule 14A filed on March 31, 1998 (Registration No. 001-13695). **

10.13 Deferred Compensation Plan for Directors, as amended.  Incorporated by reference to Annex I to the Definitive Proxy Statement on Schedule 14A filed on March 31, 1998 (Registration No. 001-13695). **

10.14 Community Bank System, Inc. Pension Plan Amended and Restated as of January 1, 2004.  Incorporated by reference to Exhibit No. 10.27 to the Annual Report on Form 10-K filed on March 15, 2005 (Registration No. 001-13695). **

10.15 Amendment #1 to the Community Bank System, Inc. Pension Plan, as amended and restated as of January 1, 2004 (“Plan”).  Incorporated by reference to Exhibit No. 10.27 to the Annual Report on Form 10-K filed on March 15, 2005 (Registration No. 001-13695).  **

10.16 Amendment #1 to the Deferred Compensation Plan For Certain Executive Employees of Community Bank System, Inc., as amended and restated as of January 1, 2002.  Incorporated by reference to Exhibit No. 10.33 to the Annual Report on Form 10-K filed on March 15, 2005 (Registration No. 001-13695). **

10.17 Employment Agreement, dated January 3, 2011, by and among Community Bank System, Inc., Community Bank N.A. and George J. Getman.   Incorporated by reference to Exhibit No. 10.2 to the Current Report on Form 8-K filed on January 6, 2011 (Registration No. 001-13695). **

10.18 Employment Agreement, dated January 3, 2011, by and among Community Bank System, Inc., Community Bank N.A. and Scott Kingsley.   Incorporated by reference to Exhibit No. 10.1 to the Current Report on Form 8-K filed on January 6, 2011 (Registration No. 001-13695). **

10.19 Supplemental Retirement Plan Agreement, effective April 9, 2009, by and among Community Bank System, Inc., Community Bank, N.A. and George J. Getman.  Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on April 14, 2009 (Registration No. 001-13695). **

14.1 Community Bank System, Inc., Code of Ethics.  Incorporated by reference to Exhibit No. 1 to the Annual Report on Form 10-K filed on March 15, 2005 (Registration No. 001-13695).

21.1 Subsidiaries of Registrant. *

23.1 Consent of PricewaterhouseCoopers LLP. *

31.1 Certification of Mark E. Tryniski, President and Chief Executive Officer of the Registrant, pursuant to Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *

31.2 Certification of Scott Kingsley, Treasurer and Chief Financial Officer of the Registrant, pursuant to

            Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934, as adopted pursuant to Section

            302 of the Sarbanes-Oxley Act of 2002. *

32.1 Certification of Mark E. Tryniski, President and Chief Executive Officer of the Registrant, pursuant to 18

           U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ***

32.2 Certification of Scott Kingsley, Treasurer and Chief Financial Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. ***

101.INS XBRL Instance Document. ****

101.SCH XBRL Taxonomy Extension Schema Document. ****

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document. ****

101.DEF XBRL Taxonomy Extension Definition Linkbase Document. ****

101.LAB XBRL Taxonomy Extension Label Linkbase Document. ****

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document. ****

* Filed with the Form 10-K filed on February 29, 2012.

** Denotes management contract or compensatory plan or arrangement

*** Furnished with the Form 10-K filed on February 29, 2012.

****XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Amendment to be signed on its behalf by the undersigned, thereunto duly authorized.

COMMUNITY BANK SYSTEM, INC.

By: /s/ Mark E. Tryniski

Mark E. Tryniski

President and Chief Executive Officer

March 30, 2012

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BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2011

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Funded status of the plans reconciled with amounts reported in consolidated statement of condition.

Using a measurement date of December 31, the following table shows the funded status of the Company's plans reconciled with amounts reported in the Company's consolidated statements of condition:

	Pension Benefits		Post-retirement Benefits
(000's omitted)	2011	2010	2011	2010
Change in benefit obligation:
Benefit obligation at the beginning of year	$81,321	$72,350	$3,594	$4,449
Service cost	2,959	2,780	0	0
Interest cost	4,497	3,909	153	195
Participant contributions	0	0	706	529
Plan acquisition/amendment	17,511	882	0	0
Deferred actuarial loss (gain)	11,713	4,971	46	(706)
Benefits paid	(5,144)	(3,571)	(1,147)	(873)
Benefit obligation at end of year	112,857	81,321	3,352	3,594
Change in plan assets:
Fair value of plan assets at beginning of year	96,439	74,628	0	0
Actual return of plan assets	1,479	9,758	0	0
Participant contributions	0	0	706	529
Employer contributions	11,623	15,624	441	344
Plan acquisition	21,912	0	0	0
Benefits paid	(5,144)	(3,571)	(1,147)	(873)
Fair value of plan assets at end of year	126,309	96,439	0	0
Funded status at year end	$13,452	$15,118	($3,352)	($3,594)
Amounts recognized in the consolidated balance sheet were:
Other assets	$22,929	$23,777	$0	$0
Other liabilities	(9,477)	($8,659)	($3,352)	($3,594)
Amounts recognized in accumulated other
comprehensive income (“AOCI”) were:
Net loss	$44,119	$28,152	$371	$333
Net prior service credit	(674)	(824)	(3,339)	(4,397)
Pre-tax AOCI	43,445	27,328	(2,968)	(4,064)
Taxes	(16,738)	(10,529)	1,135	1,557
AOCI at year end	$26,707	$16,799	($1,833)	($2,507)

After tax amounts recognized in accumulated other comprehensive income (loss)

Amounts recognized in accumulated other comprehensive income, net of tax, for the year ended December 31, are as follows:

	Pension Benefits		Post-retirement Benefits
(000's omitted)	2011	2010	2011	2010
Prior service cost	$92	$96	$650	$651
Net (gain) loss	9,816	(307)	24	(445)
Total	$9,908	($211)	$674	$206

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The estimated costs, net of tax, that will be amortized from accumulated other comprehensive (income) loss into net periodic (income) cost over the next fiscal year are as follows:

	Pension	Post-retirement
(000's omitted)	Benefits	Benefits
Prior service credit	($147)	($823)
Net loss	3,681	12
Total	$3,534	($811)

Weighted-average assumptions used to determine benefit obligations

The weighted-average assumptions used to determine the benefit obligations as of December 31 are as follows:

	Pension Benefits		Post-retirement Benefits
	2011	2010	2011	2010
Discount rate	4.10%	5.00%	3.90%	4.50%
Expected return on plan assets	7.50%	7.50%	N/A	N/A
Rate of compensation increase	4.00%	4.00%	N/A	N/A

Net periodic benefit cost

The net periodic benefit cost as of December 31 is as follows:

	Pension Benefits			Post-retirement Benefits
(000's omitted)	2011	2010	2009	2011	2010	2009
Service cost	$2,959	$2,780	$3,496	$0	$0	$575
Interest cost	4,497	3,909	3,676	153	195	494
Expected return on plan assets	(8,097)	(6,470)	(4,686)	0	0	0
Amortization of unrecognized net loss	2,362	2,421	2,761	8	17	0
Amortization of prior service cost	(149)	(189)	(123)	(1,057)	(1,057)	54
Amortization of transition obligation	0	0	0	0	0	41
Net periodic benefit cost	$1,572	$2,451	$5,124	($896)	($845)	$1,164

Weighted Average Assumptions Used To Determine Net Periodic Pension Cost

The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31 are as follows:

	Pension Benefits			Post-retirement Benefits
	2011	2010	2009	2011	2010	2009
Discount rate	4.40%	5.60%	6.10%	4.50%	5.15%	6.10%
Expected return on plan assets	7.50%	7.50%	8.00%	N/A	N/A	N/A
Rate of compensation increase	4.00%	4.00%	4.00%	N/A	N/A	N/A

Amount of expected benefit payments

The amount of benefit payments that are expected to be paid over the next ten years are as follows:

	Pension	Post-retirement
(000's omitted)	Benefits	Benefits
2012	6,259	390
2013	6,850	360
2014	7,224	284
2015	6,926	268
2016	7,555	229
2017-2021	42,873	1,009

Fair value of defined benefit plan assets

The fair values of the Company's defined benefit pension plan assets at December 31, 2011 by asset category are as follows:

Asset category (000's omitted)	Quoted Prices in Active Markets for Identical Assets Level 1	Significant Observable Inputs  Level 2	Significant Unobservable Inputs  Level 3	Total
Cash	$31,389	$0	$0	31,389
Equity securities:
U.S. large-cap	26,468	0	0	26,468
U.S mid/small cap	6,004	0	0	6,004
CBSI stock	10,512	0	0	10,512
International	10,923	0	0	10,923
Global  (a)	2,936	0	0	2,936
Commodities (b)	1,837	0	0	1,837
	58,680	0	0	58,680
Fixed income securities:
Government securities	8,600	8,000	0	16,600
Investment grade bonds	4,965	0	0	4,965
High yield(c)	9,401	496	0	9,897
	22,966	8,496	0	31,462
Other types of investments:
Alternative investments (d)	4,684	94	0	4,778
Total (e)	$117,719	$8,590	$0	$126,309

The fair values of the Company's defined benefit pension plan assets at December 31, 2010 by asset category are as follows:

Asset category (000's omitted)	Quoted Prices in Active Markets for Identical Assets Level 1	Significant Observable Inputs  Level 2	Significant Unobservable Inputs  Level 3	Total
Cash	$10,851	$0	$0	$10,851
Equity securities:
U.S. large-cap	30,547	0	0	30,547
U.S mid/small cap	6,130	0	0	6,130
CBSI stock	8,728	0	0	8,728
International	12,866	0	0	12,866
Global  (a)	3,153	0	0	3,153
Commodities (b)	694	0	0	694
	62,118	0	0	62,118
Fixed income securities:
Government securities	4,900	7,212	0	12,112
Investment grade bonds	5,367	0	0	5,367
High yield(c)	5,509	0	0	5,509
	15,776	7,212	0	22,988
Other types of investments:
Alternative investments (d)	0	482	0	482
Total (e)	$88,745	$7,694	$0	$96,439

(a) This category includes securities that invest approximately 50% in

      U.S. equity securities and 50% international equity securities.

(b) This category includes investments in exchange traded funds reflecting  

      the performance of an underlying commodity index.

(c) This category is exchange-traded funds representing a diversified index

      of high yield corporate bonds.

(d) This category is comprised of non-traditional investment classes

      including private equity funds and alternative exchange funds.

(e) Excludes dividends and interest receivable totaling $306,000 and

      $317,000 at December 31, 2011 and 2010, respectively

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GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 74,362	$ 68,489
Accumulated Amortization	(58,848)	(54,467)
Net Carrying Amount	15,514	14,022
Components of goodwill [Abstract]
Goodwill, Gross	349,874	302,516	302,516
Goodwill Activity	47,358	0
Accumulated Impairment	(4,824)	(4,824)	(4,824)
Goodwill, Net	345,050	297,692	297,692
Goodwill summary [Abstract]
Goodwill, Gross	349,874	302,516	302,516
Accumulated Impairment	(4,824)	(4,824)	(4,824)
Goodwill, Net	345,050	297,692	297,692
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
2012	4,112
2013	3,304
2014	2,579
2015	1,905
2016	1,314
Thereafter	2,300
Total	15,514
Servicing Assets at Fair Value, Assumptions Used to Estimate Fair Value [Abstract]
Weighted-average contractual life (in years)	19.5	20.2
Weighted-average constant prepayment rate (CPR) (in hundredths)	24.70%	19.20%
Weighted-average discount rate (in hundredths)	3.20%	4.90%
Core Deposit Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	64,610	60,595
Accumulated Amortization	(53,091)	(49,698)
Net Carrying Amount	11,519	10,897
Other Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9,752	7,894
Accumulated Amortization	(5,757)	(4,769)
Net Carrying Amount	3,995	3,125
Mortgage Servicing Rights [Member]
Servicing Asset at Fair Value, Amount [Roll Forward]
Balance at beginning of period	2,773	2,551
Additions	239	991
Amortization	(867)	(769)
Carrying value before valuation allowance at end of period	2,145	2,773
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance balance at beginning of period	(351)	(80)
Impairment charges	(526)	(351)
Impairment recoveries	480	80
Valuation allowance balance at end of period	(397)	(351)
Net carrying value at end of period	1,748	2,422
Fair value of MSRs at end of period	1,748	2,422
Principal balance of loans sold during the year	34,625	119,018
Principal balance of loans serviced for others	458,836	496,269
Custodial escrow balances maintained in connection with loans serviced for others	$ 5,823	$ 6,139

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SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION [Abstract]

Schedule of Segment Reporting Information by Segment

Information about reportable segments and reconciliation of the information to the consolidated financial statements follows:

(000's omitted)	Banking	Other	Eliminations	Consolidated  Total
2011
Net interest income	$209,302	$111	$0	$209,413
Provision for loan losses	4,736	0	0	4,736
Noninterest income	46,921	44,142	(1,841)	89,222
Amortization of intangible assets	3,393	988	0	4,381
Other operating expenses	152,468	35,364	(1,841)	185,991
Income before income taxes	$95,626	$7,901	$0	$103,527
Assets	$6,461,694	$38,557	($11,976)	$6,488,275
Goodwill	$334,554	$10,496	$0	$345,050
2010
Net interest income	$181,582	$102	$0	$181,684
Provision for loan losses	7,205	0	0	7,205
Noninterest income	49,342	41,066	(1,616)	88,792
Amortization of intangible assets	5,081	876	0	5,957
Other operating expenses	140,267	32,278	(1,616)	170,929
Income before income taxes	$78,371	$8,014	$0	$86,385
Assets	$5,420,990	$33,129	($9,613)	$5,444,506
Goodwill	$287,412	$10,280	$0	$297,692
2009
Net interest income	$165,429	$71	$0	$165,500
Provision for loan losses	9,790	0	0	9,790
Noninterest income	47,133	37,708	(1,306)	83,535
Amortization of intangible assets	7,176	994	0	8,170
Goodwill impairment	0	3,079	0	3,079
Other operating expenses	143,760	32,475	(1,306)	174,929
Income before income taxes	$51,836	$1,231	$0	$53,067
Assets	$5,378,916	$35,201	($11,304)	$5,402,813
Goodwill	$287,412	$10,280	$0	$297,692

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DEPOSITS (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
DEPOSITS [Abstract]
Noninterest checking	$ 894,464	$ 741,166
Interest checking	918,716	721,391
Savings	660,981	546,649
Money market	1,196,835	1,003,973
Time	1,124,249	920,866
Total deposits	4,795,245	3,934,045
Time certificates of deposit in denominations of $100,000 and greater	288,386	187,600
Contractual Maturities, Time Deposits, $100,000 or More [Abstract]
2012	193,223
2013	44,992
2014	26,746
2015	9,610
2016	10,648
Thereafter	3,167
Total	$ 288,386	$ 187,600

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FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2011

FAIR VALUE [Abstract]

Summary of fair value measured on a recurring basis

There were no transfers between Level 1 and Level 2 for any of the periods presented.

	December 31, 2011
(000's omitted)	Level 1	Level 2	Level 3	Total Fair Value
Available-for-sale investment securities:
Obligations of state and political subdivisions	$0	$573,012	$0	$573,012
U.S. Treasury and agency securities	311,958	208,590	0	520,548
Government agency mortgage-backed securities	0	331,379	0	331,379
Pooled trust preferred securities	0	0	43,846	43,846
Government agency collateralized mortgage obligations	0	46,943	0	46,943
Corporate debt securities	0	22,855	0	22,855
Marketable equity securities	390	0	0	390
Total available-for-sale investment securities	312,348	1,182,779	43,846	1,538,973
Mortgage loans held for sale	0	532	0	532
Total	$312,348	$1,183,311	$43,846	$1,539,505

	December 31, 2010
(000's omitted)	Level 1	Level 2	Level 3	Total Fair Value
Available-for-sale investment securities:
Obligations of state and political subdivisions	$0	$522,218	$0	$522,218
U.S. Treasury and agency securities	1,026	303,031	0	304,057
Government agency mortgage-backed securities	0	179,716	0	179,716
Pooled trust preferred securities	0	0	41,993	41,993
Government agency collateralized mortgage obligations	0	10,395	0	10,395
Corporate debt securities	0	27,157	0	27,157
Marketable equity securities	427	0	0	427
Total available-for-sale investment securities	1,453	1,042,517	41,993	1,085,963
Forward sales contracts	0	322	0	322
Commitments to originate real estate loans for sale	0	0	58	58
Mortgage loans held for sale	0	3,952	0	3,952
Interest rate swap	0	(3,232)	0	(3,232)
Total	$1,453	$1,043,559	$42,051	$1,087,063

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis are summarized in the following tables:

	Year Ended December 31,
	2011			2010
	Pooled trust	Commitments to		Pooled trust	Commitments to
	preferred	originate real estate		preferred	originate real estate
(000's omitted)	securities	loans for sale	Total	securities	loans for sale	Total
Beginning balance	$41,993	$58	$42,051	$44,014	$31	$44,045
Total gains/(losses) included in earnings (1)	94	(258)	(164)	99	(1,421)	(1,322)
Total gains/(losses) included in other
comprehensive income	3,248	0	3,248	(527)	0	(527)
Principal reductions	(1,489)	0	(1,489)	(1,593)	0	(1,593)
Commitments to originate real estate loans
held for sale, net	0	200	200	0	1,448	1,448
Ending balance	$43,846	$0	$43,846	$41,993	$58	$42,051
(1) Amounts included in earnings associated with the pooled trust preferred securities relate to accretion of related discount

Assets and Liabilities Measured on a Non-Recurring Basis

Assets and liabilities measured on a non-recurring basis:

	December 31, 2011				December 31, 2010
(000's omitted)	Level 1	Level 2	Level 3	Total Fair Value	Level 1	Level 2	Level 3	Total Fair Value
Impaired loans	$0	$0	$4,118	$4,118	$0	$0	$703	$703
Other real estate owned	0	0	2,682	2,682	0	0	2,011	2,011
Mortgage servicing rights	0	0	1,747	1,747	0	0	2,422	2,422
Total	$0	$0	$8,547	$8,547	$0	$0	$5,136	$5,136

Carrying Amounts and Estimated Fair Values of Other Financial Instruments

The carrying amounts and estimated fair values of the Company's other financial instruments at December 31, 2011 and 2010 are as follows:

	December 31, 2011		December 31, 2010
	Carrying	Fair	Carrying	Fair
(000's omitted)	Value	Value	Value	Value
Financial assets:
Net loans	$3,471,025	$3,491,729	$3,026,363	$3,039,331
Financial liabilities:
Deposits	4,795,245	4,810,856	3,934,045	3,944,261
Borrowings	728,281	828,018	728,460	808,902
Subordinated debt held by unconsolidated subsidiary trusts	102,048	73,211	102,024	82,490

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LOANS (Tables)

12 Months Ended

Dec. 31, 2011

LOANS [Abstract]

Schedule of loans receivable, net

Loans at December 31 are summarized as follows:

(000's omitted)	2011	2010
Consumer mortgage	$1,214,621	$1,057,332
Business lending	1,226,439	1,023,286
Consumer installment - indirect	556,955	494,529
Consumer installment - direct	149,170	146,575
Home equity	323,840	304,641
Gross loans, including deferred origination costs	3,471,025	3,026,363
Allowance for loan losses	(42,213)	(42,510)
Loans, net of allowance for loan losses	$3,428,812	$2,983,853

Summary of aggregate amounts loaned to related parties of the company

Certain directors and executive officers of the Company, as well as associates of such persons, are loan customers.  Loans to these individuals were made in the ordinary course of business under normal credit terms and do not have more than a normal risk of collection.  Following is a summary of the aggregate amount of such loans during 2011 and 2010.

(000's omitted)	2011	2010
Balance at beginning of year	$18,765	$28,289
New loans	2,690	3,050
Payments	(9,905)	(12,574)
Balance at end of year	$11,550	$18,765

Aged analysis of the company's past due loans by class

The following is an aged analysis of the Company's past due loans, by class as of December 31, 2011:

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

(000's omitted)	30 - 89 days	90+ Days Past Due and  Still Accruing	Nonaccrual	Total Past Due	Current	Total Loans
Consumer mortgage	$16,026	$2,144	$5,755	$23,925	$1,111,795	$1,135,720
Business lending	4,799	389	10,966	16,154	953,745	969,899
Consumer installment - indirect	8,847	32	0	8,879	527,030	535,909
Consumer installment – direct	1,912	95	0	2,007	138,500	140,507
Home equity	2,269	218	864	3,351	290,093	293,444
Total	$33,853	$2,878	$17,585	$54,316	$3,021,163	$3,075,479

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

(000's omitted)	30 - 89 days	90+ Days Past Due and  Still Accruing	Nonaccrual	Total Past Due	Purchased Impaired	Current	Total Loans
Consumer mortgage	$985	$27	$765	$1,777	$0	$77,124	$78,901
Business lending	3,473	10	9,592	13,075	17,428	226,037	256,540
Consumer installment - indirect	737	0	2	739	0	20,307	21,046
Consumer installment – direct	167	0	0	167	0	8,496	8,663
Home equity	465	175	341	981	0	29,415	30,396
Total	$5,827	$212	$10,700	$16,739	$17,428	$361,379	$395,546

The following is an aged analysis of the Company's past due loans by class as of December 31, 2010:

(000's omitted)	30 - 89 days	90+ Days Past Due and Still Accruing	Nonaccrual	Total Past Due	Current	Total Loans
Consumer mortgage	$16,614	$2,308	$4,737	$23,659	$1,033,673	$1,057,332
Business lending	5,965	247	9,715	15,927	1,007,359	1,023,286
Consumer installment – indirect	10,246	131	0	10,377	484,152	494,529
Consumer installment – direct	2,514	96	0	2,610	143,965	146,575
Home equity	3,960	309	926	5,195	299,446	304,641
Total	$39,299	$3,091	$15,378	$57,768	$2,968,595	$3,026,363

Schedule of business lending loans by credit quality category

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

	December 31, 2011
(000's omitted)	Legacy	Acquired	Total	December 31, 2010
Pass	$732,873	$157,494	$890,367	$753,252
Special mention	118,800	47,890	166,690	159,906
Classified	118,226	33,728	151,954	110,128
Purchased impaired	0	17,428	17,428	0
Total	$969,899	$256,540	$1,226,439	$1,023,286

Schedule of loans by credit quality indicator

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

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$1,127,821	$535,877	$140,412	$292,362	$2,096,472
Nonperforming	7,899	32	95	1,082	9,108
Total	$1,135,720	$535,909	$140,507	$293,444	$2,105,580

Acquired loans (includes loans acquired after January 1, 2009

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$78,109	$21,044	$8,663	$29,880	$137,696
Nonperforming	792	2	0	516	1,310
Total	$78,901	$21,046	$8,663	$30,396	$139,006

The following table details the balances in all other loan categories at December 31, 2010:

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$1,052,595	$494,529	$146,575	$303,715	$1,997,414
Nonperforming	4,737	0	0	926	5,663
Total	$1,057,332	$494,529	$146,575	$304,641	$2,003,077

Summary of non-business impaired loans

All loan classes are collectively evaluated for impairment except business lending, as described in Note A.  A summary of impaired loans, excluding purchased impaired, as of December 31, 2011 and 2010 are summarized as follows:

(000's omitted)	2011	2010
Loans with reserve	$4,118	$1,465
Loans without reserve	2,308	3,846
Carrying balance	6,426	5,311
Contractual balance	8,527	7,042
Specifically allocated allowance	895	762
Average impaired loans	5,652	9,752
Interest income recognized	314	263
Troubled debt restructured loans	0	0

Schedule of allowance for loan losses by class

The allowance for loan losses is general in nature and is available to absorb losses from any loan type despite the analysis below.  The following presents by class the activity in the allowance for loan losses:

	Consumer	Business	Home	Consumer	Consumer		Acquired
(000's omitted)	Mortgage	Lending	Equity	Indirect	Direct	Unallocated	Impaired	Total
Balance at December 31, 2009	$1,127	$23,577	$374	$10,004	$3,660	$3,168	$0	$41,910
Charge-offs	(583)	(3,950)	(181)	(4,279)	(1,719)	0	0	(10,712)
Recoveries	71	730	7	2,569	730	0	0	4,107
Provision	1,836	1,969	489	1,628	1,306	(23)	0	7,205
Balance at December 31, 2010	2,451	22,326	689	9,922	3,977	3,145	0	42,510
Charge-offs	(748)	(2,964)	(265)	(4,464)	(1,273)	0	0	(9,714)
Recoveries	30	692	85	3,200	674	0	0	4,681
Provision	2,918	520	621	302	(88)	77	386	4,736
Balance at December 31, 2011	$4,651	$20,574	$1,130	$8,960	$3,290	$3,222	$386	$42,213

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:

Balance at December 31, 2010	$0
Wilber acquisition	2,509
Accretion income recognized, to-date	(844)
Net reclassification from nonaccretable to accretable	945
Balance at December 31, 2011	$2,610

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INCOME TAXES (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Current:
Federal	$ 17,145,000	$ 13,090,000	$ 6,400,000
State and other	375,000	776,000	1,788,000
Deferred:
Federal	10,674,000	7,633,000	3,929,000
State and other	2,191,000	1,566,000	(495,000)
Provision for income taxes	30,385,000	23,065,000	11,622,000
Components of net deferred tax liability [Abstract]
Allowance for loan losses	16,371,000	16,437,000
Employee benefits	6,718,000	5,843,000
Interest rate swap	0	1,243,000
Debt extinguishment	1,821,000	2,111,000
Other	2,169,000	1,440,000
Deferred tax asset	27,079,000	27,074,000
Investment securities	37,386,000	7,487,000
Intangible assets	9,448,000	16,962,000
Loan origination costs	5,041,000	4,397,000
Depreciation	5,779,000	3,700,000
Mortgage servicing rights	678,000	933,000
Pension	2,860,000	4,163,000
Prepaid FDIC insurance	3,079,000	2,913,000
Deferred tax liability	64,271,000	40,555,000
Net deferred tax liability	(37,192,000)	(13,481,000)
State tax net operating loss carry forward	25,700,000
Gross deferred tax asset related to net operating loss carry forward, prior to federal tax expense	1,400,000
Net operating loss carry forward expiration	between 2026 and 2029
Operating loss carry forward utilization period	Expected to be substantially utilized over the next two years and completely utilized over the next five years.
Effective tax rate reconciliation [Abstract]
Federal statutory income tax rate (in hundredths)	35.00%	35.00%	35.00%
Increase (reduction) in taxes resulting from:
Tax-exempt interest (in hundredths)	(7.10%)	(8.30%)	(14.10%)
State income taxes, net of federal benefit (in hundredths)	1.60%	1.80%	1.70%
Other (in hundredths)	(0.10%)	(1.80%)	(0.70%)
Effective income tax rate (in hundredths)	29.40%	26.70%	21.90%
Unrecognized tax benefits [Roll forward]
Unrecognized tax benefits at beginning of year	98,000	708,000	856,000
Changes related to:
Positions taken during the current year	35,000	35,000	79,000
Settlements with taxing authorities	0	(408,000)	0
Lapse of statutes of limitation	0	(237,000)	(227,000)
Unrecognized tax benefits at end of year	133,000	98,000	708,000
Unrecognized tax benefits that would impact effective tax rate, if recognized	100,000
Accrued interest related to tax positions	$ 10,000	$ 20,000	$ 200,000

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REGULATORY MATTERS

12 Months Ended

Dec. 31, 2011

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

NOTE P:  REGULATORY MATTERS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking 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 effect on the Company's financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company's and the Bank's assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices.  The Company's and the Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum total core capital to risk-weighted assets of 8%, and Tier I capital to risk-weighted assets and Tier I capital to average assets of 4%.  Management believes, as of December 31, 2011, that the Company and Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2011 and 2010, the most recent notification from the Office of the Comptroller of the Currency (“OCC”) categorized the Company and Bank as “well capitalized” under the regulatory framework for prompt corrective action.  To be categorized as “well capitalized,” the Company and Bank must maintain minimum total core capital to risk-weighted assets of 10%, Tier I capital to risk-weighted assets of 6% and Tier I capital to average assets of 5%.  There are no conditions or events since that notification that management believes have changed the institution's category.  Except in connection with the regulatory approval of the Citizens branch acquisition in November 2008 by the OCC, there were no significant capital requirements imposed or agreed to during the regulatory approval process of any of our acquisitions.  In connection with the Citizens acquisition, the Bank agreed to an approval condition to maintain capital at the “well-capitalized” level.

The capital ratios and amounts of the Company and the Bank as of December 31 are presented below:

	2011		2010
(000's omitted)	Company	Bank	Company	Bank
Tier 1 capital to average assets
Amount	$508,250	$459,680	$424,408	$380,174
Ratio	8.38%	7.60%	8.23%	7.40%
Minimum required amount	$242,559	$241,995	$206,206	$205,622

Tier 1 capital to risk-weighted assets
Amount	$508,250	$502,193	$424,408	$380,174
Ratio	14.31%	12.99%	13.49%	12.13%
Minimum required amount	$142,074	$141,529	$125,840	$125,404
Total core capital to risk-weighted assets
Amount	$550,763	$502,193	$463,777	$419,408
Ratio	15.51%	14.19%	14.74%	13.38%
Minimum required amount	$284,148	$283,058	$251,680	$250,809

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ACQUISITIONS (Details) (USD $) In Thousands, except Share data in Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Apr. 08, 2011
Loans acquired in Wilber acquisition [Abstract]
Contractually required principal and interest at acquisition			$ 722,246
Contractual cash flows not expected to be collected			(51,176)
Expected cash flows at acquisition			671,070
Interest component of expected cash flows			(208,736)
Fair value of acquired loans			462,334
Accelerated method amortization period (in years)	8
Merger and acquisition integration related expenses	4,831
Acquired Impaired Loans [Member]
Loans acquired in Wilber acquisition [Abstract]
Contractually required principal and interest at acquisition			41,730
Contractual cash flows not expected to be collected			(20,061)
Expected cash flows at acquisition			21,669
Interest component of expected cash flows			(2,509)
Fair value of acquired loans			19,160
Acquired Non-Impaired Loans [Member]
Loans acquired in Wilber acquisition [Abstract]
Contractually required principal and interest at acquisition			680,516
Contractual cash flows not expected to be collected			(31,115)
Expected cash flows at acquisition			649,401
Interest component of expected cash flows			(206,227)
Fair value of acquired loans			443,174
Wilber Acquisition [Member]
Business Acquisition [Line Items]
Acquisition purchase price			103,000
Business Acquisition, Description of Acquired Entity	Based in Oneonta, New York, Wilber operated 22 branches in the Central, Greater Capital District, and Catskill regions of Upstate New York.
Number of new branch locations included in acquisition agreement			22
Cash portion of purchase price			20,400
Issuance of shares of common stock (in shares)	3.35
Consideration paid:
Cash			20,400
Total consideration paid			103,000
Business Acquisition, Description of Acquired Entity	Based in Oneonta, New York, Wilber operated 22 branches in the Central, Greater Capital District, and Catskill regions of Upstate New York.
Number of new branch locations included in acquisition agreement			22
Cash portion of purchase price			20,400
Issuance of shares of common stock (in shares)	3.35
Supplemental pro forma information [Abstract]
Total revenue, net of interest expense	308,559	314,425
Net income	70,424	68,176
Earnings per share:
Basic earnings per share (in dollars per share)	$ 1.92	$ 1.88
Diluted earnings per share (in dollars per share)	$ 1.89	$ 1.85
Combined CAI Benefits and Wilber Corporation Acquisitions [Member]
Business Acquisition [Line Items]
Acquisition purchase price	104,735
Cash portion of purchase price	22,155
Consideration paid:
Community Bank System, Inc. common stock	82,580
Cash	22,155
Total consideration paid	104,735
Cash portion of purchase price	22,155
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	26,901
Investment securities	297,573
Loans	462,334
Premises and equipment	6,360
Accrued interest receivable	2,615
Other assets and liabilities, net	46,943
Core deposit intangibles	4,015
Other intangibles	1,858
Deposits	(771,554)
Borrowings	(19,668)
Total identifiable assets	57,377
Goodwill	$ 47,358

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COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Tables)

12 Months Ended

Dec. 31, 2011

COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS [Abstract]

Off-Balance-Sheet Financial instruments contract amount

The fair value of the standby letters of credit is immaterial for disclosure.   The contract amount of commitment and contingencies is as follows:

(000's omitted)	2011	2010
Commitments to extend credit	$572,393	$445,625
Standby letters of credit	25,279	21,456
Total	$597,672	$467,081

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BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2011

BORROWINGS [Abstract]

Outstanding borrowings

Outstanding borrowings at December 31 are as follows:

(000's omitted)	2011	2010
Federal Home Loan Bank advances	$728,235	$728,428
Commercial loans sold with recourse	0	26
Capital lease obligations	46	6
Subordinated debt held by unconsolidated subsidiary trusts,
net of discount of $479 and $503, respectively	102,048	102,024
Total borrowings	$830,329	$830,484

Borrowings by maturity date

Borrowings at December 31, 2011 have contractual maturity dates as follows:

		Weighted-average
	Carrying	Rate at
(000's omitted, except rate)	Value	December 31, 2011
July 15, 2012	$3	4.30%
January 17, 2013	235	4.00%
April 1, 2013	6	5.55%
January 1, 2014	5	7.42%
February 1, 2015	32	3.25%
June 22, 2015 (Callable)	50,000	3.62%
October 14, 2015 (Callable)	15,000	3.95%
November 10, 2015 (Callable)	75,000	4.24%
January 27, 2016 (Callable)	10,000	3.98%
May 19, 2016 (Callable)	100,000	4.72%
August 8, 2016 (Callable)	60,000	4.28%
October 11, 2016 (Callable)	25,000	4.62%
October 11, 2016 (Callable)	25,000	4.35%
July 31, 2017 (Callable)	50,000	4.05%
July 31, 2017 (Callable)	50,000	4.04%
July 31, 2017 (Callable)	100,000	4.03%
December 21, 2017 (Callable)	31,600	3.16%
December 21, 2017 (Callable)	126,400	3.40%
January 25, 2018 (Callable)	10,000	2.73%
July 31, 2031	24,728	4.01%
December 15, 2036	77,320	2.20%
Total	$830,329	3.84%

Preferred securities

The Company sponsors two business trusts, Community Statutory Trust III and Community Capital Trust IV, of which 100% of the common stock is owned by the Company.  The trusts were formed for the purpose of issuing company-obligated mandatorily redeemable preferred securities to third-party investors and investing the proceeds solely in junior subordinated debt securities of the Company. The debentures held by each trust are the sole assets of that trust.  Distributions on the preferred securities issued by each trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the debentures held by that trust.  The preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures.  The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities subject to the terms of each of the guarantees.  The terms of the preferred securities of each trust are as follows:

	Issuance		Interest	Maturity	Call	Call
	Date	Amount	Rate	Date	Provision	Price
III	7/31/2001	$24,450	3 month LIBOR plus 3.58% (4.01%)	7/31/2031	5 year beginning 2006	Par
IV	12/8/2006	$75,000	3 month LIBOR plus 1.65% (2.20%)	12/15/2036	5 year beginning 2011	Par

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LOANS (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	$ 3,471,025,000	$ 3,026,363,000
Allowance for loan losses	(42,213,000)	(42,510,000)
Loans, net of allowance for loan losses	3,428,812,000	2,983,853,000
Net deferred loan origination costs	13,700,000	12,300,000
Loans receivable, related parties [Roll Forward]
Balance at beginning of period	18,765,000	28,289,000
New loans	2,690,000	3,050,000
Payments	(9,905,000)	(12,574,000)
Balance at end of period	11,550,000	18,765,000
Aged analysis of the company's loans [Abstract]
30 - 89 days		39,299,000
90 plus Days Past Due and Still Accruing		3,091,000
Nonaccrual		15,378,000
Total Past Due		57,768,000
Current		2,968,595,000
Gross loans, including deferred origination costs	3,471,025,000	3,026,363,000
Gross loans, including deferred origination costs	3,471,025,000	3,026,363,000
Impaired loans [Abstract]
Loans with reserve	4,118,000	1,465,000
Loans without reserve	2,308,000	3,846,000
Carrying balance	6,426,000	5,311,000
Contractual balance	8,527,000	7,042,000
Specifically allocated allowance	895,000	762,000
Average impaired loans	5,652,000	9,752,000
Interest income recognized	314,000	263,000
Troubled debt restructured loans	0	0
Allowance for loan losses [Roll Forward]
Balance at beginning of period	42,510,000	41,910,000
Charge-offs	(9,714,000)	(10,712,000)
Recoveries	4,681,000	4,107,000
Provision	4,736,000	7,205,000
Balance at end of period	42,213,000	42,510,000
Accretable discount related to acquired loans [Roll forward]
Beginning Balance	0
Wilber acquisition	2,509,000
Accretion income recognized, to-date	(844,000)
Net reclassification from nonaccretable to accretable	945,000
Ending Balance	2,610,000	0
Consumer Mortgage [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(4,651,000)	(2,451,000)
Allowance for loan losses [Roll Forward]
Balance at beginning of period	2,451,000	1,127,000
Charge-offs	(748,000)	(583,000)
Recoveries	30,000	71,000
Provision	2,918,000	1,836,000
Balance at end of period	4,651,000	2,451,000
Business Lending [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(20,574,000)	(22,326,000)
Allowance for loan losses [Roll Forward]
Balance at beginning of period	22,326,000	23,577,000
Charge-offs	(2,964,000)	(3,950,000)
Recoveries	692,000	730,000
Provision	520,000	1,969,000
Balance at end of period	20,574,000	22,326,000
Home Equity Receivables [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(1,130,000)	(689,000)
Allowance for loan losses [Roll Forward]
Balance at beginning of period	689,000	374,000
Charge-offs	(265,000)	(181,000)
Recoveries	85,000	7,000
Provision	621,000	489,000
Balance at end of period	1,130,000	689,000
Consumer Installment-Direct [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(3,290,000)	(3,977,000)
Allowance for loan losses [Roll Forward]
Balance at beginning of period	3,977,000	3,660,000
Charge-offs	(1,273,000)	(1,719,000)
Recoveries	674,000	730,000
Provision	(88,000)	1,306,000
Balance at end of period	3,290,000	3,977,000
Consumer Installment-Indirect [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(8,960,000)	(9,922,000)
Allowance for loan losses [Roll Forward]
Balance at beginning of period	9,922,000	10,004,000
Charge-offs	(4,464,000)	(4,279,000)
Recoveries	3,200,000	2,569,000
Provision	302,000	1,628,000
Balance at end of period	8,960,000	9,922,000
Unallocated [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(3,222,000)	(3,145,000)
Allowance for loan losses [Roll Forward]
Balance at beginning of period	3,145,000	3,168,000
Charge-offs	0	0
Recoveries	0	0
Provision	77,000	(23,000)
Balance at end of period	3,222,000	3,145,000
Acquired Impaired [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(386,000)
Allowance for loan losses [Roll Forward]
Balance at beginning of period	0
Charge-offs	0
Recoveries	0
Provision	386,000
Balance at end of period	386,000
Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	395,546,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	5,827,000
90 plus Days Past Due and Still Accruing	212,000
Nonaccrual	10,700,000
Total Past Due	16,739,000
Purchased Impaired	17,428,000
Current	361,379,000
Gross loans, including deferred origination costs	395,546,000
Gross loans, including deferred origination costs	395,546,000
Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	3,075,479,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	33,853,000
90 plus Days Past Due and Still Accruing	2,878,000
Nonaccrual	17,585,000
Total Past Due	54,316,000
Current	3,021,163,000
Gross loans, including deferred origination costs	3,075,479,000
Gross loans, including deferred origination costs	3,075,479,000
Performing [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		1,997,414,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		1,997,414,000
Gross loans, including deferred origination costs		1,997,414,000
Performing [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	137,696,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	137,696,000
Gross loans, including deferred origination costs	137,696,000
Performing [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	2,096,472,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	2,096,472,000
Gross loans, including deferred origination costs	2,096,472,000
Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		5,663,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		5,663,000
Gross loans, including deferred origination costs		5,663,000
Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,310,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	1,310,000
Gross loans, including deferred origination costs	1,310,000
Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	9,108,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	9,108,000
Gross loans, including deferred origination costs	9,108,000
Performing and Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		2,003,077,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		2,003,077,000
Gross loans, including deferred origination costs		2,003,077,000
Performing and Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	139,006,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	139,006,000
Gross loans, including deferred origination costs	139,006,000
Performing and Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	2,105,580,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	2,105,580,000
Gross loans, including deferred origination costs	2,105,580,000
Consumer Mortgage [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		1,057,332,000
Aged analysis of the company's loans [Abstract]
30 - 89 days		16,614,000
90 plus Days Past Due and Still Accruing		2,308,000
Nonaccrual		4,737,000
Total Past Due		23,659,000
Current		1,033,673,000
Gross loans, including deferred origination costs		1,057,332,000
Gross loans, including deferred origination costs		1,057,332,000
Consumer Mortgage [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	78,901,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	985,000
90 plus Days Past Due and Still Accruing	27,000
Nonaccrual	765,000
Total Past Due	1,777,000
Purchased Impaired	0
Current	77,124,000
Gross loans, including deferred origination costs	78,901,000
Gross loans, including deferred origination costs	78,901,000
Consumer Mortgage [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,135,720,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	16,026,000
90 plus Days Past Due and Still Accruing	2,144,000
Nonaccrual	5,755,000
Total Past Due	23,925,000
Current	1,111,795,000
Gross loans, including deferred origination costs	1,135,720,000
Gross loans, including deferred origination costs	1,135,720,000
Consumer Mortgage [Member] | Performing [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		1,052,595,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		1,052,595,000
Gross loans, including deferred origination costs		1,052,595,000
Consumer Mortgage [Member] | Performing [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	78,109,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	78,109,000
Gross loans, including deferred origination costs	78,109,000
Consumer Mortgage [Member] | Performing [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,127,821,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	1,127,821,000
Gross loans, including deferred origination costs	1,127,821,000
Consumer Mortgage [Member] | Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		4,737,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		4,737,000
Gross loans, including deferred origination costs		4,737,000
Consumer Mortgage [Member] | Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	792,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	792,000
Gross loans, including deferred origination costs	792,000
Consumer Mortgage [Member] | Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	7,899,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	7,899,000
Gross loans, including deferred origination costs	7,899,000
Consumer Mortgage [Member] | Performing and Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		1,057,332,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		1,057,332,000
Gross loans, including deferred origination costs		1,057,332,000
Consumer Mortgage [Member] | Performing and Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	78,901,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	78,901,000
Gross loans, including deferred origination costs	78,901,000
Consumer Mortgage [Member] | Performing and Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,135,720,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	1,135,720,000
Gross loans, including deferred origination costs	1,135,720,000
Business Lending [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,226,439,000	1,023,286,000
Aged analysis of the company's loans [Abstract]
30 - 89 days		5,965,000
90 plus Days Past Due and Still Accruing		247,000
Nonaccrual		9,715,000
Total Past Due		15,927,000
Current		1,007,359,000
Gross loans, including deferred origination costs	1,226,439,000	1,023,286,000
Gross loans, including deferred origination costs	1,226,439,000	1,023,286,000
Business Lending [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	256,540,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	3,473,000
90 plus Days Past Due and Still Accruing	10,000
Nonaccrual	9,592,000
Total Past Due	13,075,000
Purchased Impaired	17,428,000
Current	226,037,000
Gross loans, including deferred origination costs	256,540,000
Gross loans, including deferred origination costs	256,540,000
Business Lending [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	969,899,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	4,799,000
90 plus Days Past Due and Still Accruing	389,000
Nonaccrual	10,966,000
Total Past Due	16,154,000
Current	953,745,000
Gross loans, including deferred origination costs	969,899,000
Gross loans, including deferred origination costs	969,899,000
Business Lending [Member] | Pass [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	890,367,000	753,252,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	890,367,000	753,252,000
Gross loans, including deferred origination costs	890,367,000	753,252,000
Business Lending [Member] | Pass [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	157,494,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	157,494,000
Gross loans, including deferred origination costs	157,494,000
Business Lending [Member] | Pass [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	732,873,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	732,873,000
Gross loans, including deferred origination costs	732,873,000
Business Lending [Member] | Special Mention [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	166,690,000	159,906,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	166,690,000	159,906,000
Gross loans, including deferred origination costs	166,690,000	159,906,000
Business Lending [Member] | Special Mention [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	47,890,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	47,890,000
Gross loans, including deferred origination costs	47,890,000
Business Lending [Member] | Special Mention [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	118,800,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	118,800,000
Gross loans, including deferred origination costs	118,800,000
Business Lending [Member] | Classified [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	151,954,000	110,128,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	151,954,000	110,128,000
Gross loans, including deferred origination costs	151,954,000	110,128,000
Business Lending [Member] | Classified [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	33,728,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	33,728,000
Gross loans, including deferred origination costs	33,728,000
Business Lending [Member] | Classified [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	118,226,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	118,226,000
Gross loans, including deferred origination costs	118,226,000
Business Lending [Member] | Purchased Impaired [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	17,428,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	17,428,000
Gross loans, including deferred origination costs	17,428,000
Business Lending [Member] | Purchased Impaired [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	17,428,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	17,428,000
Gross loans, including deferred origination costs	17,428,000
Business Lending [Member] | Purchased Impaired [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	0
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	0
Gross loans, including deferred origination costs	0
Consumer Installment-Indirect [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		494,529,000
Aged analysis of the company's loans [Abstract]
30 - 89 days		10,246,000
90 plus Days Past Due and Still Accruing		131,000
Nonaccrual		0
Total Past Due		10,377,000
Current		484,152,000
Gross loans, including deferred origination costs		494,529,000
Gross loans, including deferred origination costs		494,529,000
Consumer Installment-Indirect [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	21,046,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	737,000
90 plus Days Past Due and Still Accruing	0
Nonaccrual	2,000
Total Past Due	739,000
Purchased Impaired	0
Current	20,307,000
Gross loans, including deferred origination costs	21,046,000
Gross loans, including deferred origination costs	21,046,000
Consumer Installment-Indirect [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	535,909,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	8,847,000
90 plus Days Past Due and Still Accruing	32,000
Nonaccrual	0
Total Past Due	8,879,000
Current	527,030,000
Gross loans, including deferred origination costs	535,909,000
Gross loans, including deferred origination costs	535,909,000
Consumer Installment-Indirect [Member] | Performing [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		494,529,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		494,529,000
Gross loans, including deferred origination costs		494,529,000
Consumer Installment-Indirect [Member] | Performing [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	21,044,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	21,044,000
Gross loans, including deferred origination costs	21,044,000
Consumer Installment-Indirect [Member] | Performing [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	535,877,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	535,877,000
Gross loans, including deferred origination costs	535,877,000
Consumer Installment-Indirect [Member] | Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		0
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		0
Gross loans, including deferred origination costs		0
Consumer Installment-Indirect [Member] | Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	2,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	2,000
Gross loans, including deferred origination costs	2,000
Consumer Installment-Indirect [Member] | Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	32,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	32,000
Gross loans, including deferred origination costs	32,000
Consumer Installment-Indirect [Member] | Performing and Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		494,529,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		494,529,000
Gross loans, including deferred origination costs		494,529,000
Consumer Installment-Indirect [Member] | Performing and Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	21,046,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	21,046,000
Gross loans, including deferred origination costs	21,046,000
Consumer Installment-Indirect [Member] | Performing and Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	535,909,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	535,909,000
Gross loans, including deferred origination costs	535,909,000
Home Equity Receivables [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		304,641,000
Aged analysis of the company's loans [Abstract]
30 - 89 days		3,960,000
90 plus Days Past Due and Still Accruing		309,000
Nonaccrual		926,000
Total Past Due		5,195,000
Current		299,446,000
Gross loans, including deferred origination costs		304,641,000
Gross loans, including deferred origination costs		304,641,000
Home Equity Receivables [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	30,396,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	465,000
90 plus Days Past Due and Still Accruing	175,000
Nonaccrual	341,000
Total Past Due	981,000
Purchased Impaired	0
Current	29,415,000
Gross loans, including deferred origination costs	30,396,000
Gross loans, including deferred origination costs	30,396,000
Home Equity Receivables [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	293,444,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	2,269,000
90 plus Days Past Due and Still Accruing	218,000
Nonaccrual	864,000
Total Past Due	3,351,000
Current	290,093,000
Gross loans, including deferred origination costs	293,444,000
Gross loans, including deferred origination costs	293,444,000
Home Equity Receivables [Member] | Performing [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		303,715,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		303,715,000
Gross loans, including deferred origination costs		303,715,000
Home Equity Receivables [Member] | Performing [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	29,880,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	29,880,000
Gross loans, including deferred origination costs	29,880,000
Home Equity Receivables [Member] | Performing [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	292,362,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	292,362,000
Gross loans, including deferred origination costs	292,362,000
Home Equity Receivables [Member] | Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		926,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		926,000
Gross loans, including deferred origination costs		926,000
Home Equity Receivables [Member] | Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	516,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	516,000
Gross loans, including deferred origination costs	516,000
Home Equity Receivables [Member] | Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,082,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	1,082,000
Gross loans, including deferred origination costs	1,082,000
Home Equity Receivables [Member] | Performing and Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		304,641,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		304,641,000
Gross loans, including deferred origination costs		304,641,000
Home Equity Receivables [Member] | Performing and Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	30,396,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	30,396,000
Gross loans, including deferred origination costs	30,396,000
Home Equity Receivables [Member] | Performing and Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	293,444,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	293,444,000
Gross loans, including deferred origination costs	293,444,000
Consumer Installment-Direct [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		146,575,000
Aged analysis of the company's loans [Abstract]
30 - 89 days		2,514,000
90 plus Days Past Due and Still Accruing		96,000
Nonaccrual		0
Total Past Due		2,610,000
Current		143,965,000
Gross loans, including deferred origination costs		146,575,000
Gross loans, including deferred origination costs		146,575,000
Consumer Installment-Direct [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	8,663,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	167,000
90 plus Days Past Due and Still Accruing	0
Nonaccrual	0
Total Past Due	167,000
Purchased Impaired	0
Current	8,496,000
Gross loans, including deferred origination costs	8,663,000
Gross loans, including deferred origination costs	8,663,000
Consumer Installment-Direct [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	140,507,000
Aged analysis of the company's loans [Abstract]
30 - 89 days	1,912,000
90 plus Days Past Due and Still Accruing	95,000
Nonaccrual	0
Total Past Due	2,007,000
Current	138,500,000
Gross loans, including deferred origination costs	140,507,000
Gross loans, including deferred origination costs	140,507,000
Consumer Installment-Direct [Member] | Performing [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		146,575,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		146,575,000
Gross loans, including deferred origination costs		146,575,000
Consumer Installment-Direct [Member] | Performing [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	8,663,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	8,663,000
Gross loans, including deferred origination costs	8,663,000
Consumer Installment-Direct [Member] | Performing [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	140,412,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	140,412,000
Gross loans, including deferred origination costs	140,412,000
Consumer Installment-Direct [Member] | Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		0
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		0
Gross loans, including deferred origination costs		0
Consumer Installment-Direct [Member] | Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	0
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	0
Gross loans, including deferred origination costs	0
Consumer Installment-Direct [Member] | Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	95,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	95,000
Gross loans, including deferred origination costs	95,000
Consumer Installment-Direct [Member] | Performing and Nonperforming [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs		146,575,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs		146,575,000
Gross loans, including deferred origination costs		146,575,000
Consumer Installment-Direct [Member] | Performing and Nonperforming [Member] | Acquired Loans [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	8,663,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	8,663,000
Gross loans, including deferred origination costs	8,663,000
Consumer Installment-Direct [Member] | Performing and Nonperforming [Member] | Legacy Loan [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	140,507,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	140,507,000
Gross loans, including deferred origination costs	140,507,000
Consumer Mortgage [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,214,621,000	1,057,332,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	1,214,621,000	1,057,332,000
Gross loans, including deferred origination costs	1,214,621,000	1,057,332,000
Business Lending [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,226,439,000	1,023,286,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	1,226,439,000	1,023,286,000
Gross loans, including deferred origination costs	1,226,439,000	1,023,286,000
Consumer Installment-Indirect [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	556,955,000	494,529,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	556,955,000	494,529,000
Gross loans, including deferred origination costs	556,955,000	494,529,000
Home Equity Receivables [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	323,840,000	304,641,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	323,840,000	304,641,000
Gross loans, including deferred origination costs	323,840,000	304,641,000
Consumer Installment-Direct [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	149,170,000	146,575,000
Aged analysis of the company's loans [Abstract]
Gross loans, including deferred origination costs	149,170,000	146,575,000
Gross loans, including deferred origination costs	$ 149,170,000	$ 146,575,000

XML

DERIVATIVE INSTRUMENTS (Details) (USD $)	12 Months Ended
	Dec. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) recognized in the Statement of Income	$ (3,626,000)
Amount of gain recognized in other comprehensive income relating to interest rate swap	1,980,000
Interest Rate Swap [Member] | Interest on Subordinated Debt Held by Unconsolidated Subsidiary Trusts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) recognized in the Statement of Income	(3,246,000)
Loan Origination Commitments [Member] | Fees And Commissions Mortgage Banking And Services [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) recognized in the Statement of Income	(322,000)
Interest Rate Lock Commitments [Member] | Fees And Commissions Mortgage Banking And Services [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain/(loss) recognized in the Statement of Income	$ (58,000)

XML

EARNINGS PER SHARE (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
EARNINGS PER SHARE [Abstract]
Weighted-average anti-dilutive stock options outstanding (in shares)	600,000	1,200,000	2,400,000
Earnings Per Share Reconciliation [Abstract]
Net income	$ 73,142	$ 63,320	$ 41,445
Income attributable to unvested stock-based compensation awards	(553)	(542)	(215)
Income available to common shareholders	72,589	62,778	41,230
Weighted-average common shares outstanding - basic (in shares)	35,767,000	32,951,000	32,673,000
Basic earnings per share (in dollars per share)	$ 2.03	$ 1.91	$ 1.26
Earnings Per Share, Diluted [Abstract]
Net income	73,142	63,320	41,445
Income attributable to unvested stock-based compensation awards	(553)	(542)	(215)
Income available to common shareholders	$ 72,589	$ 62,778	$ 41,230
Weighted-average common shares outstanding (in shares)	35,767,000	32,951,000	32,673,000
Assumed exercise of stock options (in shares)	415,000	318,000	148,000
Weighted-average shares - diluted (in shares)	36,182,000	33,269,000	32,821,000
Diluted earnings per share (in dollars per share)	$ 2.01	$ 1.89	$ 1.26
Number of common shares authorized to be repurchased (in shares)	1,500,000		1,000,000

XML

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2011

DERIVATIVE INSTRUMENTS [Abstract]

Derivative Financial Instruments and Location of Net Gain or Loss In Statement of Income

The following table presents the Company's derivative financial instruments and the location of the net gain or loss recognized in the statement of income for the year ended December 31, 2011:

		Loss recognized in the
		Statement of Income for the Year
(000's omitted)	Location	Ending December 31, 2011
Interest rate swap agreement	Interest on subordinated debt held by
	unconsolidated subsidiary trusts	($3,246)
Interest rate lock commitments	Mortgage banking and other services	(58)
Forward sales commitments	Mortgage banking and other services	(322)
Total		($3,626)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Statement of Cash Flows [Abstract]
Cash acquired in acquisition	$ 26,901	$ 0	$ 0
Payments made on borrowings	$ 25,938	$ 26,318	$ 5,779

XML

COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Details) (USD $)	Dec. 31, 2011	Dec. 31, 2010
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total Off-balance Sheet Risks, Liability	$ 597,672,000	$ 467,081,000
Unused lines of credit	65,000,000
Federal Home Loan Bank unused borrowing capacity	424,400,000
Federal Reserve Bank unused borrowing capacity	16,400,000
Federal Reserve required average total reserve	28,500,000
Required deposit with Federal Reserve Bank of New York	2,000,000
Cash on hand available for reserves	26,500,000
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, lower range	0
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, upper range	2,000,000
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total Off-balance Sheet Risks, Liability	572,393,000	445,625,000
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Total Off-balance Sheet Risks, Liability	$ 25,279,000	$ 21,456,000

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LEASES (Tables)

12 Months Ended

Dec. 31, 2011

LEASES [Abstract]

Future minimum rental commitments

The future minimum rental commitments as of December 31, 2011 for all non-cancelable operating leases are as follows:

2012	$4,650
2013	4,164
2014	3,046
2015	2,078
2016	1,814
Thereafter	5,740
Total	$21,492

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SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

NOTE T:  SEGMENT INFORMATION

Operating segments are components of an enterprise, which are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance.  The Company's chief operating decision maker is the President and Chief Executive Officer of the Company. The Company has identified Banking as its reportable operating business segment.  The banking segment provides full-service banking to consumers, businesses and governmental units in northern, central and western New York as well as Northern Pennsylvania.

Other operating segments of the Company's operations, which do not have similar characteristics to the banking segment and do not meet the quantitative thresholds requiring disclosure, are included in the Other category.  Revenues derived from these segments includes administration, consulting and actuarial services to sponsors of employee benefit plans, broker-dealer and investment advisory services, asset management services to individuals, corporate pension and profit sharing plans, trust services and insurance commissions from various insurance related products and services.  The accounting policies used in the disclosure of business segments are the same as those described in the summary of significant accounting policies (See Note A).

Information about reportable segments and reconciliation of the information to the consolidated financial statements follows:

(000's omitted)	Banking	Other	Eliminations	Consolidated  Total
2011
Net interest income	$209,302	$111	$0	$209,413
Provision for loan losses	4,736	0	0	4,736
Noninterest income	46,921	44,142	(1,841)	89,222
Amortization of intangible assets	3,393	988	0	4,381
Other operating expenses	152,468	35,364	(1,841)	185,991
Income before income taxes	$95,626	$7,901	$0	$103,527
Assets	$6,461,694	$38,557	($11,976)	$6,488,275
Goodwill	$334,554	$10,496	$0	$345,050
2010
Net interest income	$181,582	$102	$0	$181,684
Provision for loan losses	7,205	0	0	7,205
Noninterest income	49,342	41,066	(1,616)	88,792
Amortization of intangible assets	5,081	876	0	5,957
Other operating expenses	140,267	32,278	(1,616)	170,929
Income before income taxes	$78,371	$8,014	$0	$86,385
Assets	$5,420,990	$33,129	($9,613)	$5,444,506
Goodwill	$287,412	$10,280	$0	$297,692
2009
Net interest income	$165,429	$71	$0	$165,500
Provision for loan losses	9,790	0	0	9,790
Noninterest income	47,133	37,708	(1,306)	83,535
Amortization of intangible assets	7,176	994	0	8,170
Goodwill impairment	0	3,079	0	3,079
Other operating expenses	143,760	32,475	(1,306)	174,929
Income before income taxes	$51,836	$1,231	$0	$53,067
Assets	$5,378,916	$35,201	($11,304)	$5,402,813
Goodwill	$287,412	$10,280	$0	$297,692

XML

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2011

DERIVATIVE INSTRUMENTS [Abstract]

DERIVATIVE INSTRUMENTS

NOTE S:  DERIVATIVE INSTRUMENTS

The Company is party to derivative financial instruments in the normal course of its business to meet the financing needs of its customers and to manage its own exposure to fluctuations in interest rates.  These financial instruments have been limited to interest rate swap agreements, commitments to originate real estate loans held for sale and forward sales commitments.  The Company does not hold or issue derivative financial instruments for trading or other speculative purposes.

The Company has entered, at times, into forward sales commitments for the future delivery of residential mortgage loans, and interest rate lock commitments to fund loans at a specified interest rate.  The forward sales commitments are utilized to reduce interest rate risk associated with interest rate lock commitments and loans held for sale.  Changes in the estimated fair value of the forward sales commitments and interest rate lock commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time.  At inception and during the life of the interest rate lock commitment, the Company includes the expected net future cash flows related to the associated servicing of the loan as part of the fair value measurement of the interest rate lock commitments.  These derivatives are recorded at fair value.

The Company utilized interest rate swap agreements as part of the management of interest rate risk to modify the repricing characteristics of certain of its borrowings.  The interest rate swap was designated as a qualifying cash flow hedge and expired December 15, 2011.  See further details of interest rate swap agreements in Note H.

The Company did not have any active derivatives at December 31, 2011 but did utilize them during the year then ended.  The following table presents the Company's derivative financial instruments and the location of the net gain or loss recognized in the statement of income for the year ended December 31, 2011:

		Loss recognized in the
		Statement of Income for the Year
(000's omitted)	Location	Ending December 31, 2011
Interest rate swap agreement	Interest on subordinated debt held by
	unconsolidated subsidiary trusts	($3,246)
Interest rate lock commitments	Mortgage banking and other services	(58)
Forward sales commitments	Mortgage banking and other services	(322)
Total		($3,626)

The amount of gain recognized during the year ended December 31, 2011 in other comprehensive income related to the interest rate swap accounted for as a hedging instrument was approximately $1,980,000.

XML

BORROWINGS (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Total outstanding borrowings [Abstract]
Carrying value	$ 830,329,000	$ 830,484,000
Subordinated debt held by unconsolidated subsidiary trust, discount	479,000	503,000
Weighted-average interest rate on borrowings (in hundredths)	4.25%	4.29%
Borrowings by contractual maturity date [Abstract]
Carrying value	830,329,000	830,484,000
Weighted Average Interest Rate (in hundredths)	3.84%
Number of wholly owned, unconsolidated subsidiary trusts	2
Percent ownership of unconsolidated subsidiary trusts (in hundredths)	100.00%
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Interest rate swap agreement interest rate (in hundredths)	6.43%
Interest rate swap agreement term (in years)	5 Y
Additional interest expense recognized, interest rate swap agreement	3,200,000	3,400,000
Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	728,235,000	728,428,000
Borrowings by contractual maturity date [Abstract]
Carrying value	728,235,000	728,428,000
Community Statutory Trust III [Member]
Borrowings by contractual maturity date [Abstract]
Call provision	5 year beginning 2006
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Issuance Date	7/31/2001
Issuance Amount	24,450,000
Variable Interest Rate Basis	3 month LIBOR
Variable Interest Rate, Basis Spread (in hundredths)	3.58%
Effective Interest Rate (in hundredths)	4.01%
Maturity Date	7/31/2031
Call Provision	5 year beginning 2006
Debt Instrument, Call Date, Earliest	Jul. 31, 2006
Current call price	Par
Community Capital Trust IV [Member]
Borrowings by contractual maturity date [Abstract]
Call provision	5 year beginning 2011
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Issuance Date	12/8/2006
Issuance Amount	75,000,000
Variable Interest Rate Basis	3 month LIBOR
Variable Interest Rate, Basis Spread (in hundredths)	1.65%
Effective Interest Rate (in hundredths)	2.20%
Maturity Date	12/15/2036
Call Provision	5 year beginning 2011
Debt Instrument, Call Date, Earliest	Dec. 08, 2011
Current call price	Par
Capital Lease Obligations [Member]
Total outstanding borrowings [Abstract]
Carrying value	46,000	6,000
Borrowings by contractual maturity date [Abstract]
Carrying value	46,000	6,000
Commercial Loan Sold With Recourse [Member]
Total outstanding borrowings [Abstract]
Carrying value	0	26,000
Borrowings by contractual maturity date [Abstract]
Carrying value	0	26,000
Subordinated Debt Held By Unconsolidated Subsidiary Trust [Member]
Total outstanding borrowings [Abstract]
Carrying value	102,048,000	102,024,000
Borrowings by contractual maturity date [Abstract]
Carrying value	102,048,000	102,024,000
July 15, 2012 [Member] | Capital Lease Obligations [Member]
Total outstanding borrowings [Abstract]
Carrying value	3,000
Borrowings by contractual maturity date [Abstract]
Carrying value	3,000
Weighted Average Interest Rate (in hundredths)	4.30%
January 17, 2013 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	235,000
Borrowings by contractual maturity date [Abstract]
Carrying value	235,000
Weighted Average Interest Rate (in hundredths)	4.00%
April 1, 2013 [Member] | Capital Lease Obligations [Member]
Total outstanding borrowings [Abstract]
Carrying value	6,000
Borrowings by contractual maturity date [Abstract]
Carrying value	6,000
Weighted Average Interest Rate (in hundredths)	5.55%
January 1, 2014 [Member] | Capital Lease Obligations [Member]
Total outstanding borrowings [Abstract]
Carrying value	5,000
Borrowings by contractual maturity date [Abstract]
Carrying value	5,000
Weighted Average Interest Rate (in hundredths)	7.42%
February 1, 2015 [Member] | Capital Lease Obligations [Member]
Total outstanding borrowings [Abstract]
Carrying value	32,000
Borrowings by contractual maturity date [Abstract]
Carrying value	32,000
Weighted Average Interest Rate (in hundredths)	3.25%
June 22, 2015 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	50,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	50,000,000
Weighted Average Interest Rate (in hundredths)	3.62%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
October 14, 2015 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	15,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	15,000,000
Weighted Average Interest Rate (in hundredths)	3.95%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
November 10, 2015 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	75,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	75,000,000
Weighted Average Interest Rate (in hundredths)	4.24%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
January 27, 2016 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	10,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	10,000,000
Weighted Average Interest Rate (in hundredths)	3.98%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
May 19, 2016 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	100,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	100,000,000
Weighted Average Interest Rate (in hundredths)	4.72%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
August 8, 2016 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	60,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	60,000,000
Weighted Average Interest Rate (in hundredths)	4.28%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
October 11, 2016 Number 1 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	25,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	25,000,000
Weighted Average Interest Rate (in hundredths)	4.62%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
October 11, 2016 Number 2 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	25,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	25,000,000
Weighted Average Interest Rate (in hundredths)	4.35%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
July 31, 2017 Number 1 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	50,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	50,000,000
Weighted Average Interest Rate (in hundredths)	4.05%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
July 31, 2017 Number 2 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	50,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	50,000,000
Weighted Average Interest Rate (in hundredths)	4.04%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
July 31, 2017 Number 3 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	100,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	100,000,000
Weighted Average Interest Rate (in hundredths)	4.03%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
December 21, 2017 Number 1 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	31,600,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	31,600,000
Weighted Average Interest Rate (in hundredths)	3.16%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
December 21, 2017 Number 2 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	126,400,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	126,400,000
Weighted Average Interest Rate (in hundredths)	3.40%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
January 25, 2018 [Member] | Federal Home Loan Bank Advances [Member]
Total outstanding borrowings [Abstract]
Carrying value	10,000,000
Borrowings by contractual maturity date [Abstract]
Call provision	Callable
Carrying value	10,000,000
Weighted Average Interest Rate (in hundredths)	2.73%
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]
Call Provision	Callable
July 31, 2031 [Member] | Subordinated Debt Held By Unconsolidated Subsidiary Trust [Member]
Total outstanding borrowings [Abstract]
Carrying value	24,728,000
Borrowings by contractual maturity date [Abstract]
Carrying value	24,728,000
Weighted Average Interest Rate (in hundredths)	4.01%
December 15, 2036 [Member] | Subordinated Debt Held By Unconsolidated Subsidiary Trust [Member]
Total outstanding borrowings [Abstract]
Carrying value	77,320,000
Borrowings by contractual maturity date [Abstract]
Carrying value	$ 77,320,000
Weighted Average Interest Rate (in hundredths)	2.20%

XML

REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2011

REGULATORY MATTERS [Abstract]

Capital ratios and amounts

The capital ratios and amounts of the Company and the Bank as of December 31 are presented below:

	2011		2010
(000's omitted)	Company	Bank	Company	Bank
Tier 1 capital to average assets
Amount	$508,250	$459,680	$424,408	$380,174
Ratio	8.38%	7.60%	8.23%	7.40%
Minimum required amount	$242,559	$241,995	$206,206	$205,622

Tier 1 capital to risk-weighted assets
Amount	$508,250	$502,193	$424,408	$380,174
Ratio	14.31%	12.99%	13.49%	12.13%
Minimum required amount	$142,074	$141,529	$125,840	$125,404
Total core capital to risk-weighted assets
Amount	$550,763	$502,193	$463,777	$419,408
Ratio	15.51%	14.19%	14.74%	13.38%
Minimum required amount	$284,148	$283,058	$251,680	$250,809

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2011

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Nature of Operations

Nature of Operations

Community Bank System, Inc. (the “Company”) is a single bank holding company which wholly-owns five consolidated subsidiaries: Community Bank, N.A. (the “Bank”), Benefit Plans Administrative Services, Inc. (“BPAS”), CFSI Closeout Corp. (“CFSICC”), First of Jermyn Realty Co. (“FJRC”), and Town & Country Agency LLC (“T&C”).  BPAS owns three subsidiaries, Benefit Plans Administrative Services LLC (“BPA”), Harbridge Consulting Group LLC (“Harbrdge”), and Hand Benefits & Trust, Inc. (“HB&T”), which owns two subsidiaries Hand Securities Inc. (“HSI”), and Flex Corporation (“Flex”).  BPAS provides administration, consulting and actuarial services to sponsors of employee benefit plans.  CFSICC, FJRC and T&C are inactive companies.  The Company also wholly-owns two unconsolidated subsidiary business trusts formed for the purpose of issuing mandatorily-redeemable preferred securities which are considered Tier I capital under regulatory capital adequacy guidelines (see Note P).

The Bank operates 168 full service branches throughout 35 counties of Upstate New York, where it operates as Community Bank, N.A. and five counties of Northeastern Pennsylvania, where it is known as First Liberty Bank & Trust, offering a range of commercial and retail banking services.  The Bank owns the following subsidiaries: Community Investment Services, Inc. (“CISI”), CBNA Treasury Management Corporation (“TMC”), CBNA Preferred Funding Corporation (“PFC”), Nottingham Advisors, Inc. (“Nottingham”), First Liberty Service Corp. (“FLSC”), Brilie Corporation (“Brilie”), CBNA Insurance Agency (“CBNA Insurance”) and Western Catskill Realty, LLC (“WCR”).  CISI provides broker-dealer and investment advisory services.  TMC provides cash management, investment, and treasury services to the Bank.  PFC primarily is an investor in residential real estate loans.  Nottingham provides asset management services to individuals, corporate pension and profit sharing plans, and foundations.  FLSC provides banking-related services to the Pennsylvania branches of the Bank.   Brilie and WCR are inactive companies.  CBNA Insurance is a full service insurance agency offering primarily property and casualty products.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  All inter-company accounts and transactions have been eliminated in consolidation.

Variable Interest Entities (“VIE”) are required to be consolidated by a company if it is determined the company is the primary beneficiary of a VIE.  The primary beneficiary of a VIE is the enterprise that has: (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits of the VIE that could potentially be significant to the VIE.  The Company's wholly-owned subsidiaries, Community Statutory Trust III and Community Capital Trust IV, are VIEs for which the Company is not the primary beneficiary.  Accordingly, the accounts of these entities are not included in the Company's consolidated financial statements.

Critical Accounting Estimates in the Preparation of Financial Statements

Critical Accounting Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Critical accounting estimates include the allowance for loan losses, actuarial assumptions associated with the pension, post-retirement and other employee benefit plans, the provision for income taxes, investment valuation and other-than-temporary impairment, the carrying value of goodwill and other intangible assets, and acquired loan valuations.

Risk and Uncertainties

Risk and Uncertainties

In the normal course of its business, the Company encounters economic and regulatory risks.  There are three main components of economic risk: interest rate risk, credit risk and market risk.  The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different basis, from its interest-earning assets.  The Company's primary credit risk is the risk of default on the Company's loan portfolio that results from the borrowers' inability or unwillingness to make contractually required payments.  Market risk reflects potential changes in the value of collateral underlying loans, the fair value of investment securities, and loans held for sale.

The Company is subject to regulations of various governmental agencies.  These regulations can and do change significantly from period to period.  The Company also undergoes periodic examinations by the regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required loan loss allowances, and operating restrictions resulting from the regulators' judgments based on information available to them at the time of their examinations.

Revenue Recognition

Revenue Recognition

The Company recognizes income on an accrual basis. CISI recognizes fee income when investment and insurance products are sold to customers.  Nottingham provides asset management services to brokerage firms and clients and recognizes income ratably over the contract period during which service is performed.  Revenue from BPA's administration and recordkeeping services is recognized ratably over the service contract period.  Revenue from consulting and actuarial services is recognized when services are rendered.  CBNA Insurance recognizes commission revenue at the later of the effective date of the insurance policy, or the date on which the policy premium is billed to the customer.  At that date, the earnings process has been completed and the impact of refunds for policy cancellations can be reasonably estimated to establish reserves. The reserve for policy cancellations is based upon historical cancellation experience adjusted for known circumstances. All intercompany revenue and expense among related entities are eliminated in consolidation.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and highly liquid investments with original maturities of less than ninety days.  The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets' fair values.

Investment Securities

Investment Securities

The Company has classified its investments in debt and equity securities as held-to-maturity or available-for-sale.  Held-to-maturity securities are those for which the Company has the positive intent and ability to hold until maturity, and are reported at cost, which is adjusted for amortization of premiums and accretion of discounts.  Securities not classified as held-to-maturity are classified as available-for-sale and are reported at fair value with net unrealized gains and losses reflected as a separate component of shareholders' equity, net of applicable income taxes.  None of the Company's investment securities have been classified as trading securities at December 31, 2011.  Certain equity securities are stated at cost and include restricted stock of the Federal Reserve Bank of New York and Federal Home Loan Bank of New York.

Fair values for investment securities are based upon quoted market prices, where available.  If quoted market prices are not available, fair values are based upon quoted market prices of comparable instruments, or a discounted cash flow model using market estimates of interest rates and volatility.

The Company conducts an assessment of all securities in an unrealized lossposition to determine if other-than-temporary impairment (“OTTI”) exists on a monthly basis. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis.  The OTTI assessment considers the security structure, recent security collateral performance metrics, if applicable, external credit ratings, failure of the issuer to make scheduled interest or principal payments, judgment and expectations of future performance, and relevant independent industry research, analysis and forecasts. The severity of the impairment and the length of time the security has been impaired is also considered in the assessment.  The assessment of whether an OTTI decline exists is performed on each security, regardless of the classification of the security as available-for-sale or held-to-maturity and involves a high degree of subjectivity and judgment that is based on the information available to management at a point in time.

An OTTI loss must be recognized for a debt security in an unrealized loss position if there is intent to sell the security or it is more likely than not the Company will be required to sell the security prior to recovery of its amortized cost basis. In this situation, the amount of loss recognized in income is equal to the difference between the fair value and the amortized cost basis of the security. Even if management does not have the intent and it is not more likely than not that the Company will be required to sell the securities, an evaluation of the expected cash flows to be received is performed to determine if a credit loss has occurred. For debt securities, a critical component of the evaluation for OTTI is the identification of credit-impaired securities, where the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security.  In the event of a credit loss, only the amount of impairment associated with the credit loss would be recognized in income. The portion of the unrealized loss relating to other factors, such as liquidity conditions in the market or changes in market interest rates, is recorded in accumulated other comprehensive loss.

Equity securities are also evaluated to determine whether the unrealized loss is expected to be recoverable based on whether evidence exists to support a realizable value equal to or greater than the amortized cost basis. If it is probable that the amortized cost basis will not be recovered, taking into consideration the estimated recovery period and the ability to hold the equity security until recovery, OTTI is recognized in earnings equal to the difference between the fair value and the amortized cost basis of the security.

The specific identification method is used in determining the realized gains and losses on sales of investment securities and other-than-temporary impairment charges.  Premiums and discounts on securities are amortized and accreted, respectively, on the interest method basis over the period to maturity or estimated life of the related security.  Purchases and sales of securities are recognized on a trade date basis.

Derivative Financial Instruments

Derivative Financial Instruments

The Company has utilized interest rate swap agreements, considered to be cash flow hedges, as part of the management of interest rate risk to modify the repricing characteristics of certain portions of its portfolios of interest-bearing liabilities. These derivative instruments are required to be carried at fair value on the balance sheet.

Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability, with a corresponding offset recorded in other comprehensive income within shareholders' equity, net of income tax effect.  Amounts are reclassified from other comprehensive income to the income statement in the period or periods the hedged transaction affects earnings.  Derivative gains and losses not effective in hedging the expected cash flows of the hedged item are recognized immediately in the income statement.  At the hedge's inception and at least quarterly thereafter, a formal assessment is performed to determine the effectiveness of the cash flow hedge.  If it is determined that a derivative instrument has not been or will not continue to be highly effective as a hedge, hedge accounting is discontinued.
 

Loans

Loans

Loans are stated at unpaid principal balances, net of unearned income.  Mortgage loans held for sale are carried at fair value and are included in loans held for sale. Fair values for variable rate loans that reprice frequently are based on carrying values.  Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.  The carrying amount of accrued interest approximates its fair value.

Interest on loans is accrued and credited to operations based upon the principal amount outstanding.  Nonrefundable loan fees and related direct costs are deferred and included in the loan balances where they are amortized over the life of the loan as an adjustment to loan yield using the effective yield method.  Premiums and discounts on purchased loans are amortized using the effective yield method over the life of the loans.

Acquired Loans

Acquired Loans

Acquired loans are initially recorded at their acquisition date fair values.  The carryover of allowance for loan losses is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date.  Fair values for acquired loans are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate.

Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments.  The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loans. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require the Company to evaluate the need for an allowance for loan losses on these loans. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the non-accretable discount which the Company then reclassifies as an accretable discount that is recognized into interest income over the remaining life of the loans using the interest method.

Acquired loans that met the criteria for non-accrual of interest prior to acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loan to be non-accrual or non-performing and may accrue interest on these loans, including the impact of any accretable discount. For acquired loans that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value and amortized over the life of the asset.  Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses for these loans is similar to originated loans, however, the Company records a provision for loan losses only when the required allowance exceeds any remaining pooled discounts for loans evaluated collectively for impairment.

Impaired and Other Nonaccrual Loans

Impaired and Other Nonaccrual Loans

The Company places a loan on nonaccrual status when the loan becomes ninety days past due (or sooner, if management concludes collection is doubtful), except when, in the opinion of management, it is well-collateralized and in the process of collection.  A loan may be placed on nonaccrual status earlier than ninety days past due if there is deterioration in the financial position of the borrower or if other conditions of the loan so warrant. When a loan is placed on nonaccrual status, uncollected accrued interest is reversed against interest income and the amortization of nonrefundable loan fees and related direct costs is discontinued. Interest income during the period the loan is on nonaccrual status is recorded on a cash basis after recovery of principal is reasonably assured. Nonaccrual loans are returned to accrual status when management determines that the borrower's performance has improved and that both principal and interest are collectible.  This generally requires a sustained period of timely principal and interest payments and a well-documented credit evaluation of the borrower's financial condition.

Commercial loans greater than $0.5 million are evaluated individually for impairment.  A loan is considered impaired, based on current information and events, if it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  The measurement of impaired loans is generally based upon the present value of expected future cash flows or the fair value of the collateral, if the loan is collateral-dependent.

The Company's charge-off policy by loan type is as follows:

·   Business lending loans are generally charged-off to the extent outstanding principal exceeds the fair value of estimated proceeds from collection efforts, including liquidation of collateral.  The charge-off is recognized when the loss becomes reasonably quantifiable.

·   Consumer installment loans are generally charged-off to the extent outstanding principal balance exceeds the fair value of collateral, and are recognized by the end of the month in which the loan becomes 90 days past due.

·   Consumer mortgage and home equity loans are generally charged-off to the extent outstanding principal exceeds the fair value of the property, less estimated costs to sell, and are recognized when the loan becomes 180 days past due.

Allowance for Loan Losses

Allowance for Loan Losses

Management continually evaluates the credit quality of the Company's loan portfolio, and performs a formal review of the adequacy of the allowance for loan losses on a quarterly basis.  The allowance reflects management's best estimate of probable losses inherent in the loan portfolio.  Determination of the allowance is subjective in nature and requires significant estimates.   The Company's allowance methodology consists of two broad components - general and specific loan loss allocations.

The general loan loss allocation is composed of two calculations that are computed on five main loan segments:  business lending, consumer installment - direct, consumer installment - indirect, home equity and consumer mortgage.  The first calculation determines an allowance level based on the latest 36 months of historical net charge-off data for each loan class (commercial loans exclude balances with specific loan loss allocations).  The second calculation is qualitative and takes into consideration eight qualitative environmental factors:  levels and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards, and other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry condition; and effects of changes in credit concentrations.  These two calculations are added together to determine the general loan loss allocation.  The specific loan loss allocation relates to individual commercial loans that are both greater than $0.5 million and in a nonaccruing status with respect to interest.  Specific losses are based on discounted estimated cash flows, including any cash flows resulting from the conversion of collateral or collateral shortfalls.  The allowance levels computed from the specific and general loan loss allocation methods are combined with unallocated allowances, if any, to derive the required allowance for loan losses to be reflected on the Consolidated Statement of Condition. As it has in prior periods, the Company strives to refine and enhance its loss evaluation and estimation processes continually.

Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance.  A provision for loan loss is charged to operations based on management's periodic evaluation of factors previously mentioned.

Intangible Assets

Intangible Assets

Intangible assets include core deposit intangibles, customer relationship intangibles and goodwill arising from acquisitions. Core deposit intangibles and customer relationship intangibles are amortized on either an accelerated or straight-line basis over periods ranging from 8 to 20 years. The initial and ongoing carrying value of goodwill and other intangible assets is based upon discounted cash flow modeling techniques that require management to make estimates regarding the amount and timing of expected future cash flows.  It also requires use of a discount rate that reflects the current return requirements of the market in relation to present risk-free interest rates, required equity market premiums, and company-specific risk indicators.

The Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment.  The implied fair value of the reporting units' goodwill is compared to its carrying amount and the impairment loss is measured by the excess of the carrying value over fair value.  The fair value of each reporting unit is compared to the carrying amount of that reporting unit in order to determine if impairment is indicated.

Premises and Equipment

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation.  Computer software costs that are capitalized only include external direct costs of obtaining and installing the software.  The Company has not developed any internal use software.  Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.  Useful lives range from five to ten years for equipment; three to seven years for software and hardware; and 10 to 40 years for building and building improvements.  Land improvements are depreciated over 15 years and leasehold improvements are amortized over the shorter of the term of the respective lease plus any optional renewal periods that are reasonably assured or life of the asset. Maintenance and repairs are charged to expense as incurred.

Other Real Estate

Other Real Estate

Other real estate owned is comprised of properties acquired through foreclosure, or by deed in lieu of foreclosure.  These assets are carried at fair value less estimated costs of disposal.  At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company's recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses.  Any subsequent reduction in value is recognized by a charge to income.  Operating costs associated with the properties are charged to expense as incurred.  At December 31, 2011 and 2010, other real estate, included in other assets, amounted to $2.6 million and $2.0 million, respectively.

Mortgage Servicing Rights

Mortgage Servicing Rights

Originated mortgage servicing rights are recorded at their fair value at the time of sale of the underlying loan, and are amortized in proportion to and over the period of estimated net servicing income or loss.  The Company uses a valuation model that calculates the present value of future cash flows to determine the fair value of servicing rights.  In using this valuation method, the Company incorporates assumptions that market participants would use in estimating future net servicing income, which includes estimates of the servicing cost per loan, the discount rate, and prepayment speeds.  The carrying value of the originated mortgage servicing rights is included in other assets and is evaluated quarterly for impairment using these same market assumptions.

Treasury Stock

Treasury Stock

Repurchases of shares of the Company's common stock are recorded at cost as a reduction of shareholders' equity.  Reissuance of shares of treasury stock is recorded at average cost.

Income Taxes

Income Taxes

The Company and its subsidiaries file a consolidated federal income tax return.  Provisions for income taxes are based on taxes currently payable or refundable as well as deferred taxes that are based on temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements.  Deferred tax assets and liabilities are reported in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority having full knowledge of all relevant information. A tax position meeting the more-likely-than-not recognition threshold should be measured at the largest amount of benefit for which the likelihood of realization upon ultimate settlement exceeds 50 percent.

Retirement Benefits

Retirement Benefits

The Company provides defined benefit pension benefits and post-retirement health and life insurance benefits to eligible employees.  The Company also provides deferred compensation and supplemental executive retirement plans for selected current and former employees and officers.  Expense under these plans is charged to current operations and consists of several components of net periodic benefit cost based on various actuarial assumptions regarding future experience under the plans, including discount rate, rate of future compensation increases and expected return on plan assets.

Assets Under Management or Administration

Assets Under Management or Administration

Assets held in fiduciary or agency capacities for customers are not included in the accompanying consolidated statements of condition as they are not assets of the Company.  All fees associated with providing asset management services are recorded on an accrual basis of accounting and are included in noninterest income.

Advertising

Advertising

Advertising costs amounting to approximately $2.3 million, $2.0 million and $2.7 million for the years ending December 31, 2011, 2010 and 2009, respectively, are nondirect response in nature and expensed as incurred.

Earnings Per Share

Earnings Per Share

Effective January 1, 2009, the Company adopted new authoritative accounting guidance under ASC 260, Earnings Per Share, which 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 determined that its unvested restricted stock awards are participating securities.  Accordingly, effective January 1, 2009, earnings per common share is computed using the two-class method prescribed by ASC 260.  All previously reported earnings per share data has been retroactively adjusted to conform to the new computation method, resulting in minimal changes.

Using the two-class method, basic earnings per common share is computed based upon net income available to common shareholders divided by the weighted average number of common shares outstanding during each period, which exclude the outstanding unvested restricted stock.  Diluted earnings per share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of stock options using the treasury stock method.  Stock options where the exercise price is greater than the average market price of common shares were not included in the computation of earnings per diluted share as they would have been anti-dilutive.

Stock-based Compensation

Stock-based Compensation

Companies are required to measure and record compensation expense for stock options and other share-based payments on the instruments' fair value on the date of grant.  The Company uses the modified prospective method.  Under this method, expense is recognized for awards that are granted, modified, or settled after December 31, 2005, as well as for unvested awards that were granted prior to January 1, 2006.  Stock-based compensation expense is recognized ratably over the requisite service period for all awards (see Note L).
 

Fair Values of Financial Instruments

Fair Values of Financial Instruments

The Company determines fair values based on quoted market values where available or on estimates using present values or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.  Certain financial instruments and all nonfinancial instruments are excluded from this disclosure requirement.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.  The fair values of investment securities, loans, deposits, and borrowings have been disclosed in Note R.

Reclassifications

Reclassifications

Certain reclassifications have been made to prior years' balances to conform to the current year presentation.

Subsequent Events

Subsequent Events

On January 19, 2012, the Bank, the wholly-owned banking subsidiary of the Company, entered into an Assignment, Purchase and Assumption Agreement (the “HSBC Branch Agreement”) and a Purchase and Assumption Agreement (the “First Niagara Branch Agreement”) (collectively, the “Agreements”) with First Niagara Bank, N.A. (“First Niagara”). Under the Agreements, the Bank will acquire 19 branches in Central, Northern, and Western New York consisting of three branches purchased directly from First Niagara and 16 branches which are currently owned by HSBC Bank USA, National Association (“HSBC”). First Niagara is assigning its rights to the HSBC branches in connection with its pending acquisition of HSBC's Upstate New York banking franchise. Under the terms of the Agreements, Community Bank will acquire approximately $218 million in loans and $955 million in deposits at a blended deposit premium of 3.22%.  The branch acquisitions are expected to close during the third quarter of 2012 subject to regulatory review and approval and customary closing conditions.

The Company completed a public stock offering in late January 2012.  The offering raised $57.5 million through the issuance of 2.13 million shares.  The net proceeds of the offering were approximately $54.9 million.  The Company intends to use the net proceeds from this offering to support the HSBC and First Niagara branch acquisitions.

New Accounting Pronouncements

New Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (Topic 220) - Presentation of Comprehensive Income.  This guidance eliminates the option to present the components of other comprehensive income as part of the statement of equity and requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The amendments are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011.  On October 21, 2011, the FASB decided to propose a deferral of the new requirement to present reclassifications of other comprehensive income on the face of the income statement.  Companies would still be required to adopt the other requirements contained in the new standard for the presentation of comprehensive income. The guidance requires changes in presentation only and will have no significant impact on the Company's consolidated financial statements.

In May 2011, the FASB and the International Accounting Standards Board both issued Common Fair Value Measurement and Disclosure Requirements in GAAP and International Financial Reporting Standards (IFRS).  This new guidance results in a consistent definition of fair value and common requirements for measurement of and disclosures about fair value between GAAP and IFRS. While many of the amendments to GAAP are not expected to have a significant effect on practice, the new guidance changes some fair value measurement principles and disclosure requirements currently in GAAP. The new guidance goes into effect on January 1, 2012 for the Company and will be applied prospectively. The Company is currently evaluating the effect of the adoption of this guidance on the Company's financial condition, results of operations, and cash flows.

In September 2011, the FASB issued ASU No. 2011-8, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment.  This pronouncement amends its guidance for goodwill impairment testing by allowing entities to first assess qualitative factors in determining whether or not the fair value of a reporting unit exceeds its carrying value. If an entity concludes from this qualitative assessment that it is more likely than not that the fair value of a reporting unit exceeds its carrying value, then performing a two-step impairment test is unnecessary. This standard is effective for fiscal years beginning after December 15, 2011. The adoption of this standard is not expected to have an impact on the Company's consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-11-Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The standard requires new disclosures about certain financial instruments and derivative instruments that are either offset in the balance sheet (presented on a net basis) or subject to an enforceable master netting arrangement or similar arrangement. The standard requires disclosures that provide both gross and net information in the notes to the financial statements for relevant assets and liabilities. The new requirements do not change the accounting guidance on netting, but rather enhance the disclosures to more clearly show the impact of netting arrangements on a company's financial position. This new accounting guidance will be effective, on a retrospective basis for all comparative periods presented, beginning on January 1, 2013.  The adoption of this standard is not expected to have an impact on the Company's consolidated financial statements.

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ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2011

ACQUISITIONS [Abstract]

Estimated fair value of assets acquired and liabilities assumed

The following table summarizes the estimated fair value of the assets acquired and liabilities assumed.

(000's omitted)
Consideration paid:
Community Bank System, Inc. common stock	$82,580
Cash	22,155
Total consideration paid	104,735
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	26,901
Investment securities	297,573
Loans	462,334
Premises and equipment	6,360
Accrued interest receivable	2,615
Other assets and liabilities, net	46,943
Core deposit intangibles	4,015
Other intangibles	1,858
Deposits	(771,554)
Borrowings	(19,668)
Total identifiable assets	57,377
Goodwill	$  47,358

Summary of loans acquired

The following is a summary of the loans acquired in the Wilber acquisition:

(000's omitted)	Acquired Impaired Loans	Acquired Non-Impaired Loans	Total Acquired Loans
Contractually required principal and interest at acquisition	$41,730	$680,516	$722,246
Contractual cash flows not expected to be collected	(20,061)	(31,115)	(51,176)
Expected cash flows at acquisition	21,669	649,401	671,070
Interest component of expected cash flows	(2,509)	(206,227)	(208,736)
Fair value of acquired loans	$19,160	$443,174	$462,334

Pro forma information

The pro forma information set forth below reflects adjustments related to (a) certain purchase accounting fair value adjustments; (b) amortization of core deposit and other intangibles; and (c) income tax rate adjustment.  Expenses related to the conversion of systems and other costs of integration, as well as certain one-time costs, are included in the periods in which they were incurred.

	Pro Forma (Unaudited) Year Ended December 31,
(000's omitted)	2011	2010
Total revenue, net of interest expense	$308,559	$314,425
Net income	70,424	68,176
Earnings per share:
Basic	$1.92	$1.88
Diluted	$1.89	$1.85

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating activities:
Net income	$ 73,142	$ 63,320	$ 41,445
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	11,374	10,219	10,299
Amortization of intangible assets	4,382	5,957	8,170
Goodwill Impairment	0	0	3,079
Net (accretion)/amortization of premiums & discounts on securities, loans and borrowings	(1,934)	2,249	2,141
Stock-based compensation	3,784	3,523	3,100
Provision for loan losses	4,736	7,205	9,790
Provision for deferred income taxes	12,942	9,199	3,434
Amortization of mortgage servicing rights	868	769	731
Income from bank-owned life insurance policies	(894)	(458)	(476)
Loss (Gain) from sale of investment securities and debt extinguishments, net	61	0	(7)
Net gain on sale of loans and other assets	(422)	(1,032)	(1,098)
Net change in loans originated for sale	4,047	(309)	1,092
Change in other operating assets and liabilities	(14,269)	(3,554)	(37,566)
Net cash provided by operating activities	97,817	97,088	44,134
Investing activities:
Proceeds from sales of available-for-sale investment securities	15,330	0	27
Proceeds from sales of other securities	1,032	1,201	0
Proceeds from maturities of held-to-maturity investment securities	65,062	76,081	108,927
Proceeds from maturities of available-for-sale investment securities	254,368	157,563	253,629
Purchases of held-to-maturity investment securities	(13,292)	(345,187)	(369,374)
Purchases of available-for-sale investment securities	(353,498)	(149,883)	(94,339)
Purchases of other securities	(2,908)	0	(390)
Net decrease in loans	12,639	68,691	29,200
Cash received /(paid) for acquisitions, net of cash acquired	4,746	0	(358)
Purchases of premises and equipment	(9,613)	(15,716)	(13,894)
Net cash (used in) investing activities	(26,134)	(207,250)	(86,572)
Financing activities:
Net change in noninterest checking, checking, and savings accounts	199,812	246,453	491,821
Net change in time deposits	(110,166)	(236,893)	(268,147)
Net change in borrowings, net of payments	(19,938)	(26,318)	(5,779)
Issuance of common stock	5,351	6,433	1,241
Cash dividends paid	(34,404)	(30,394)	(28,788)
Tax benefits from share-based payment arrangements	703	842	213
Net cash provided by/(used in) financing activities	41,358	(39,877)	190,561
Change in cash and cash equivalents	113,041	(150,039)	148,123
Cash and cash equivalents at beginning of year	211,837	361,876	213,753
Cash and cash equivalents at end of year	324,878	211,837	361,876
Supplemental disclosures of cash flow information:
Cash paid for interest	61,564	67,485	85,011
Cash paid for income taxes	20,810	12,630	5,434
Supplemental disclosures of noncash financing and investing activities:
Dividends declared and unpaid	9,609	7,976	7,211
Transfers from loans to other real estate	5,186	3,839	2,373
Acquisitions:
Fair value of assets acquired, excluding acquired cash and intangibles	815,824	0	63
Fair value of liabilities assumed	$ 791,222	$ 0	$ 0

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INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2011

INVESTMENT SECURITIES [Abstract]

Amortized cost and estimated fair value of investment securities

The amortized cost and estimated fair value of investment securities as of December 31 are as follows:

	2011				2010
		Gross	Gross	Estimated		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair	Amortized	Unrealized	Unrealized	Fair
(000's omitted)	Cost	Gains	Losses	Value	Cost	Gains	Losses	Value
Held-to-Maturity Portfolio:
U.S. Treasury and agency securities	$448,260	$56,800	$0	$505,060	$478,100	$21,571	$29	$499,642
Obligations of state and political subdivisions	69,623	5,088	0	74,711	67,864	277	1,691	66,450
Government agency mortgage-backed securities	35,576	2,452	0	38,028	56,891	2,753	0	59,644
Other securities	36	0	0	36	53	0	0	53
Total held-to-maturity portfolio	553,495	$64,340	$0	617,835	602,908	$24,601	$1,720	625,789
Available-for-Sale Portfolio:
Obligations of state and political subdivisions	543,527	$29,721	$236	573,012	518,216	$10,197	$6,195	522,218
U.S. Treasury and agency securities	463,922	56,626	0	520,548	281,826	22,231	0	304,057
Government agency mortgage-backed securities	310,541	20,840	2	331,379	170,673	9,159	116	179,716
Pooled trust preferred securities	68,115	0	24,269	43,846	69,508	0	27,515	41,993
Government agency collateralized mortgage obligations	45,481	1,572	110	46,943	9,904	491	0	10,395
Corporate debt securities	21,495	1,360	0	22,855	25,523	1,634	0	27,157
Marketable equity securities	380	92	82	390	380	54	7	427
Subtotal	1,453,461	110,211	24,699	1,538,973	1,076,030	43,766	33,833	1,085,963
Net unrealized gain on    available-for-sale portfolio	85,512			–	9,933			–
Total available-for-sale portfolio	1,538,973	$110,211	$24,699	1,538,973	1,085,963	$43,766	$33,833	1,085,963
Other Securities:
Federal Home Loan Bank common stock	38,343			38,343	37,301			37,301
Federal Reserve Bank common stock	15,451			15,451	12,378			12,378
Other equity securities	5,108			5,108	3,774			3,774
Total other securities	58,902			58,902	53,453			53,453
Total	$2,151,370			$2,215,710	$1,742,324			$1,765,205

Summary of investment securities that have been in a continuous unrealized loss position for less than or greater than twelve months

A summary of investment securities that have been in a continuous unrealized loss position for less than or greater than twelve months is as follows:

As of December 31, 2011

		Less than 12 Months			12 Months or Longer			Total
			Gross			Gross			Gross
		Fair	Unrealized		Fair	Unrealized		Fair	Unrealized
(000's omitted)	#	Value	Losses	#	Value	Losses	#	Value	Losses
Available-for-Sale Portfolio:
Obligations of state and political subdivisions	2	$211	$0	6	$6,038	$236	8	$6,249	$236
Pooled trust preferred securities	0	0	0	3	43,019	24,269	3	43,019	24,269
Government agency mortgage-backed securities	3	2,415	2	0	0	0	3	2,415	2
Government agency collateralized mortgage       obligations	17	6,648	110	0	0	0	17	6,648	110
Marketable equity securities	1	123	78	3	12	4	4	135	82
Total available-for-sale/investment portfolio	23	$9,397	$190	12	$49,069	$24,509	35	$58,466	$24,699

As of December 31, 2010

		Less than 12 Months			12 Months or Longer			Total
			Gross			Gross			Gross
		Fair	Unrealized		Fair	Unrealized		Fair	Unrealized
(000's omitted)	#	Value	Losses	#	Value	Losses	#	Value	Losses
Held-to-Maturity Portfolio:
U.S. Treasury and agency securities	2	$14,967	$29	0	$0	$0	2	$14,967	$29
Obligations of state and political subdivisions	48	43,851	1,691	0	0	0	48	43,851	1,691
Total held-to-maturity portfolio	50	58,818	1,720	0	0	0	50	58,818	1,720
Available-for-Sale Portfolio:
Obligations of state and political subdivisions	174	197,066	5,705	4	4,049	490	178	201,115	6,195
Pooled trust preferred securities	0	0	0	3	41,993	27,515	3	41,993	27,515
Government agency mortgage-backed securities	6	14,690	116	0	0	0	6	14,690	116
Marketable equity securities	2	210	2	3	11	5	5	221	7
Total available-for-sale portfolio	182	211,966	5,823	10	46,053	28,010	192	258,019	33,833
Total investment portfolio	232	$270,784	$7,543	10	$46,053	$28,010	242	$316,837	$35,553

Amortized cost and estimated fair value of debt securities by contractual maturity

The amortized cost and estimated fair value of debt securities at December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Held-to-Maturity		Available-for-Sale
	Amortized	Fair	Amortized	Fair
(000's omitted)	Cost	Value	Cost	Value
Due in one year or less	$11,074	$11,183	$30,838	$31,243
Due after one through five years	152,584	169,672	211,594	224,297
Due after five years through ten years	285,481	321,967	413,159	449,799
Due after ten years	68,780	76,985	441,468	454,922
Subtotal	517,919	579,807	1,097,059	1,160,261
Collateralized mortgage obligations	0	0	45,481	46,943
Mortgage-backed securities	35,576	38,028	310,541	331,379
Total	$553,495	$617,835	$1,453,081	$1,538,583

Cash flow information on investment securities

Cash flow information on investment securities for the years ended December 31 is as follows:

(000's omitted)	2011	2010	2009
Gross gains on sales of investment securities	349	0	7
Gross losses on sales of investment securities	319	0	0
Proceeds from the maturities of mortgage-backed securities and CMO's	97,224	93,171	101,176
Purchases of mortgage-backed securities and CMO's	253,378	9,132	214,275

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STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2011

STOCK-BASED COMPENSATION PLANS [Abstract]

Long-term share-based incentive program stock activity

Activity in this long-term incentive program is as follows:

	Stock Options
		Weighted-average
		Exercise Price of
	Outstanding	Shares
Outstanding at December 31, 2009	3,082,815	$20.22
Granted	352,365	19.49
Exercised	(411,507)	17.09
Forfeited	(46,781)	21.27
Outstanding at December 31, 2010	2,976,892	20.55
Granted	274,828	27.36
Exercised	(282,930)	17.97
Forfeited	(21,575)	20.58
Outstanding at December 31, 2011	2,947,215	$21.43
Exercisable at December 31, 2011	2,199,737	$21.44

Stock options outstanding and range of exercise price

The following table summarizes the information about stock options outstanding under the Company's stock option plan at December 31, 2011:

	Options outstanding			Options exercisable
Range of Exercise Price	Shares	Weighted-average Exercise Price	Weighted- average Remaining Life (years)	Shares	Weighted-average Exercise Price
$0.00 – $18.00	428,377	$16.84	4.20	428,377	$16.84
$18.001 – $23.00	1,272,667	19.64	6.48	741,585	20.12
$23.001 – $28.00	1,246,171	24.83	4.76	1,029,775	24.30
TOTAL	2,947,215	$21.43	5.42	2,199,737	$21.44

Summary of valuation assumptions used to value stock options

The Black-Scholes model requires several assumptions, which management developed based on historical trends and current market observations.

	2011	2010	2009
Weighted-average Fair Value of Options Granted	$6.69	$5.56	$4.66
Assumptions:
Weighted-average expected life (in years)	7.72	7.68	7.77
Future dividend yield	3.90%	3.00%	3.00%
Share price volatility	32.12%	32.03%	30.66%
Weighted-average risk-free interest rate	3.34%	3.66%	2.86%

Unvested stock awards activity

A summary of the status of the Company's unvested restricted stock awards as of December 31, 2011, and changes during the twelve months ended December 31, 2011 and 2010, is presented below:

	Restricted  Shares	Weighted-average  grant date fair value
Unvested at December 31, 2009	174,008	$18.90
Awards	173,341	18.34
Forfeitures	(9,284)	18.17
Vestings	(53,479)	19.19
Unvested at December 31, 2010	284,586	18.53
Awards	54,958	27.36
Forfeitures	(9,061)	18.91
Vestings	(60,842)	19.40
Unvested at December 31, 2011	269,641	$20.12

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PREMISES AND EQUIPMENT (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Property Plant and Equipment, Gross	$ 176,461	$ 162,143
Less: Accumulated Depreciation	(90,505)	(80,582)
Property Plant and Equipment, Net	85,956	81,561
Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Property Plant and Equipment, Gross	15,069	13,300
Bank Premises Owned [Member]
Property, Plant and Equipment [Line Items]
Property Plant and Equipment, Gross	86,318	76,980
Equipment and Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property Plant and Equipment, Gross	$ 75,074	$ 71,863

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CONSOLIDATED STATEMENTS OF CONDITION (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Assets:
Cash and cash equivalents	$ 324,878	$ 211,837
Available-for-sale investment securities (cost of $1,453,460 and $1,076,030, respectively)	1,538,973	1,085,963
Held-to-maturity investment securities (fair value of $617,835 and $625,789, respectively)	553,495	602,908
Other securities, at cost	58,902	53,453
Loans held for sale, at fair value	532	3,952
Loans	3,471,025	3,026,363
Allowance for loan losses	(42,213)	(42,510)
Net loans	3,428,812	2,983,853
Intangible assets related to [Abstract]
Core deposit intangibles, net	11,519	10,897
Goodwill	345,050	297,692
Other intangibles, net	3,995	3,125
Intangible assets, net	360,564	311,714
Premises and equipment, net	85,956	81,561
Accrued interest receivable	28,579	26,136
Other assets	107,584	83,129
Total assets	6,488,275	5,444,506
Liabilities:
Noninterest-bearing deposits	894,464	741,166
Interest-bearing deposits	3,900,781	3,192,879
Total deposits	4,795,245	3,934,045
Borrowings	728,281	728,460
Subordinated debt held by unconsolidated subsidiary trusts	102,048	102,024
Accrued interest and other liabilities	88,118	72,719
Total liabilities	5,713,692	4,837,248
Commitments and contingencies (See Note N)
Shareholders' equity:
Preferred stock $1.00 par value, 500,000 shares authorized, 0 shares issued	0	0
Common stock, $1.00 par value, 50,000,000 shares authorized; 37,794,532 and 34,131,289 shares issued, respectively	37,795	34,131
Additional paid-in capital	313,501	225,543
Retained earnings	411,805	374,700
Accumulated other comprehensive gain (loss)	29,165	(9,340)
Treasury stock, at cost (808,123 and 812,346 shares, respectively)	(17,683)	(17,776)
Total shareholders' equity	774,583	607,258
Total liabilities and shareholders' equity	$ 6,488,275	$ 5,444,506

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PARENT COMPANY STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2011

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed balance sheet of the parent company

The condensed balance sheets of the parent company at December 31 are as follows:

(000's omitted)	2011	2010
Assets:
Cash and cash equivalents	$38,853	$35,969
Investment securities	3,572	3,612
Investment in and advances to subsidiaries	838,130	674,516
Other assets	8,145	8,243
Total assets	$888,700	$722,340
Liabilities and shareholders' equity:
Accrued interest and other liabilities	$12,069	$13,058
Borrowings	102,048	102,024
Shareholders' equity	774,583	607,258
Total liabilities and shareholders' equity	$888,700	$722,340

Condensed statement of income of parent company

The condensed statements of income of the parent company for the years ended December 31 is as follows:

(000's omitted)	2011	2010	2009
Revenues:
Dividends from subsidiaries	$52,251	$3,500	$36,000
Interest and dividends on investments	87	345	656
Other income	0	2	45
Total revenues	52,338	3,847	36,701
Expenses:
Interest on borrowings	5,815	5,960	6,153
Other expenses	273	14	101
Total expenses	6,088	5,974	6,254
Income (Loss) before tax benefit and equity in undistributed net income of subsidiaries	46,250	(2,127)	30,447
Income tax benefit	2,237	2,131	1,529
Income before equity in undistributed net income of subsidiaries	48,487	4	31,976
Equity in undistributed net income of subsidiaries	24,655	63,316	9,469
Net income	$73,142	$63,320	$41,445

Statement of cash flows of the parent company

The statements of cash flows of the parent company for the years ended December 31 is as follows:

(000's omitted)	2011	2010	2009
Operating activities:
Net income	$73,142	$63,320	$41,445
Gain on sale of fixed assets and investment securities	0	0	(7)
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed net (income)/loss of subsidiaries	(24,655)	(63,316)	(9,469)
Net change in other assets and other liabilities	(504)	(2,397)	1,190
Net cash provided by (used in) operating activities	47,983	(2,393)	33,159
Investing activities:
Purchase of investment securities	0	(10)	0
Proceeds from sale of investment securities	2	0	26
Repayments from subsidiaries, net	51	1,712	1,656
Capital contributions to subsidiaries	(102,462)	0	0
Net cash (used in)/provided by investing activities	(102,409)	1,702	1,682
Financing activities:
Issuance of common stock	91,714	9,957	4,341
Cash dividends paid	(34,404)	(30,394)	(28,789)
Net cash provided by/(used in) financing activities	57,310	(20,437)	(24,448)
Change in cash and cash equivalents	2,884	(21,128)	10,393
Cash and cash equivalents at beginning of year	35,969	57,097	46,704
Cash and cash equivalents at end of year	$38,853	$35,969	$57,097
Supplemental disclosures of cash flow information:
Cash paid for interest	$5,959	$5,960	$6,283
Supplemental disclosures of noncash financing activities
Dividends declared and unpaid	$9,609	$7,976	$7,211

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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) In Thousands, except Share data, unless otherwise specified	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2008	$ 33,468	$ 212,400	$ 329,914	$ (12,864)	$ (18,267)	$ 544,651
Balance (in shares) at Dec. 31, 2008	32,633,404
Net income			41,445			41,445
Other comprehensive income, net of tax				4,080		4,080
Dividends declared:
Common			(28,820)			(28,820)
Common stock issued under employee stock plan, including tax benefits	163	981			97	1,241
Common stock issued under employee stock plan, including tax benefits (in shares)	166,904
Stock-based compensation		3,100				3,100
Balance at Dec. 31, 2009	33,631	216,481	342,539	(8,784)	(18,170)	565,697
Balance (in shares) at Dec. 31, 2009	32,800,308
Net income			63,320			63,320
Other comprehensive income, net of tax				(556)		(556)
Dividends declared:
Common			(31,159)			(31,159)
Common stock issued under employee stock plan, including tax benefits	500	5,539			394	6,433
Common stock issued under employee stock plan, including tax benefits (in shares)	518,635
Stock-based compensation		3,523				3,523
Balance at Dec. 31, 2010	34,131	225,543	374,700	(9,340)	(17,776)	607,258
Balance (in shares) at Dec. 31, 2010	33,318,943
Net income			73,142			73,142
Other comprehensive income, net of tax				38,505		38,505
Dividends declared:
Common			(36,037)			(36,037)
Common stock issued under employee stock plan, including tax benefits	311	4,947			93	5,351
Common stock issued under employee stock plan, including tax benefits (in shares)	314,665
Stock-based compensation		3,784				3,784
Stock issued for acquisition	3,353	79,227				82,580
Stock issued for acquisition (in shares)	3,352,801
Balance at Dec. 31, 2011	$ 37,795	$ 313,501	$ 411,805	$ 29,165	$ (17,683)	$ 774,583
Balance (in shares) at Dec. 31, 2011	36,986,409

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BENEFIT PLANS (Details) (USD $)	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009	Jun. 30, 2010
Change in plan assets [Roll Forward]
Fair value of plan assets at beginning of year	$ 96,439,000	[1]
Employer contributions	11,000,000
Employer contributions	11,000,000
Fair value of plan assets at end of year	126,309,000	[1]
Employer contributions	11,000,000
Amounts recognized in accumulated other comprehensive income (AOCI) [Abstract]
Net adjustment to AOCI	24,874,000		14,292,000		14,299,000
Benefit obligation for defined benefit pension plan prior to plan revaluation	103,400,000		72,700,000
Accumulated other comprehensive income (loss), negative postretirement medical plan amendment, arising during period, net of tax					3,500,000
Plan Assets [Abstract]
Fair value of plan assets	126,309,000	[1]
Employer contributions	11,000,000
Other Deferred Compensation Arrangement [Member]
401(k) Employee Stock Ownership Plan [Abstract]
Expense recognized under plan	584,000		546,000		616,000
Liability recorded for compensation plan	4,734,000		3,693,000
Employee Stock Ownership Plan 401K Plan [Member]
401(k) Employee Stock Ownership Plan [Abstract]
Contribution from eligible compensation, minimum (in hundredths)	1.00%
Contribution from eligible compensation, maximum (in hundredths)	90.00%
Percentage of first eligible compensation fully matched by employer (in hundredths)	3.00%
Percentage of matching contribution in the form of common stock (in hundredths)	100.00%
Percentage of the next eligible compensation matched at 50% by employer (in hundredths)	3.00%
Percentage of matching contributions for the next eligible compensation in the form of company stock (in hundredths)	50.00%
Expense recognized under plan	2,752,000		2,536,000		2,342,000
Interest credit contribution expense recognized for 401(k) plan	203,000
Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	117,719,000	[1]	88,745,000	[1]
Plan Assets [Abstract]
Fair value of plan assets	117,719,000	[1]	88,745,000	[1]
Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	8,590,000	[1]	7,694,000	[1]
Plan Assets [Abstract]
Fair value of plan assets	8,590,000	[1]	7,694,000	[1]
Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0	[1]	0	[1]
Plan Assets [Abstract]
Fair value of plan assets	0	[1]	0	[1]
Cash and Cash Equivalents [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	31,389,000		10,851,000
Plan Assets [Abstract]
Fair value of plan assets	31,389,000		10,851,000
Cash and Cash Equivalents [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	31,389,000		10,851,000
Plan Assets [Abstract]
Fair value of plan assets	31,389,000		10,851,000
Cash and Cash Equivalents [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
Cash and Cash Equivalents [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
Equity Securities [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	58,680,000		62,118,000
Plan Assets [Abstract]
Fair value of plan assets	58,680,000		62,118,000
Equity Securities [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	58,680,000		62,118,000
Plan Assets [Abstract]
Fair value of plan assets	58,680,000		62,118,000
Equity Securities [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
Equity Securities [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
U.S Large-Cap [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	26,468,000		30,547,000
Plan Assets [Abstract]
Fair value of plan assets	26,468,000		30,547,000
U.S Large-Cap [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	26,468,000		30,547,000
Plan Assets [Abstract]
Fair value of plan assets	26,468,000		30,547,000
U.S Large-Cap [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
U.S Large-Cap [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
U.S Mid/Small Cap [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	6,004,000		6,130,000
Plan Assets [Abstract]
Fair value of plan assets	6,004,000		6,130,000
U.S Mid/Small Cap [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	6,004,000		6,130,000
Plan Assets [Abstract]
Fair value of plan assets	6,004,000		6,130,000
U.S Mid/Small Cap [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
U.S Mid/Small Cap [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
CBSI Stock [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	10,512,000		8,728,000
Plan Assets [Abstract]
Fair value of plan assets	10,512,000		8,728,000
CBSI Stock [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	10,512,000		8,728,000
Plan Assets [Abstract]
Fair value of plan assets	10,512,000		8,728,000
CBSI Stock [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
CBSI Stock [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
International [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	10,923,000		12,866,000
Plan Assets [Abstract]
Fair value of plan assets	10,923,000		12,866,000
International [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	10,923,000		12,866,000
Plan Assets [Abstract]
Fair value of plan assets	10,923,000		12,866,000
International [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
International [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
Global [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	2,936,000	[2]	3,153,000	[2]
Plan Assets [Abstract]
Fair value of plan assets	2,936,000	[2]	3,153,000	[2]
Global [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	2,936,000	[2]	3,153,000	[2]
Plan Assets [Abstract]
Fair value of plan assets	2,936,000	[2]	3,153,000	[2]
Global [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0	[2]	0	[2]
Plan Assets [Abstract]
Fair value of plan assets	0	[2]	0	[2]
Global [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0	[2]	0	[2]
Plan Assets [Abstract]
Fair value of plan assets	0	[2]	0	[2]
Commodities [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	1,837,000	[3]	694,000	[3]
Plan Assets [Abstract]
Fair value of plan assets	1,837,000	[3]	694,000	[3]
Commodities [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	1,837,000	[3]	694,000	[3]
Plan Assets [Abstract]
Fair value of plan assets	1,837,000	[3]	694,000	[3]
Commodities [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0	[3]	0	[3]
Plan Assets [Abstract]
Fair value of plan assets	0	[3]	0	[3]
Commodities [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0	[3]	0	[3]
Plan Assets [Abstract]
Fair value of plan assets	0	[3]	0	[3]
Fixed Income [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	31,462,000		22,988,000
Plan Assets [Abstract]
Fair value of plan assets	31,462,000		22,988,000
Fixed Income [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	22,966,000		15,776,000
Plan Assets [Abstract]
Fair value of plan assets	22,966,000		15,776,000
Fixed Income [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	8,496,000		7,212,000
Plan Assets [Abstract]
Fair value of plan assets	8,496,000		7,212,000
Fixed Income [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
US Treasury and Government [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	16,600,000		12,112,000
Plan Assets [Abstract]
Fair value of plan assets	16,600,000		12,112,000
US Treasury and Government [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	8,600,000		4,900,000
Plan Assets [Abstract]
Fair value of plan assets	8,600,000		4,900,000
US Treasury and Government [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	8,000,000		7,212,000
Plan Assets [Abstract]
Fair value of plan assets	8,000,000		7,212,000
US Treasury and Government [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
Investment Grade Bonds [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	4,965,000		5,367,000
Plan Assets [Abstract]
Fair value of plan assets	4,965,000		5,367,000
Investment Grade Bonds [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	4,965,000		5,367,000
Plan Assets [Abstract]
Fair value of plan assets	4,965,000		5,367,000
Investment Grade Bonds [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
Investment Grade Bonds [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0		0
Plan Assets [Abstract]
Fair value of plan assets	0		0
High Yield [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	9,897,000	[4]	5,509,000	[4]
Plan Assets [Abstract]
Fair value of plan assets	9,897,000	[4]	5,509,000	[4]
High Yield [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	9,401,000	[4]	5,509,000	[4]
Plan Assets [Abstract]
Fair value of plan assets	9,401,000	[4]	5,509,000	[4]
High Yield [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	496,000	[4]	0	[4]
Plan Assets [Abstract]
Fair value of plan assets	496,000	[4]	0	[4]
High Yield [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0	[4]	0	[4]
Plan Assets [Abstract]
Fair value of plan assets	0	[4]	0	[4]
Alternative Investments [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	4,778,000	[5]	482,000	[5]
Plan Assets [Abstract]
Fair value of plan assets	4,778,000	[5]	482,000	[5]
Alternative Investments [Member] | Quoted Prices in Active Markets For Identical Assets, Level 1 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	4,684,000	[5]	0	[5]
Plan Assets [Abstract]
Fair value of plan assets	4,684,000	[5]	0	[5]
Alternative Investments [Member] | Significant Observable Inputs, Level 2 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	94,000	[5]	482,000	[5]
Plan Assets [Abstract]
Fair value of plan assets	94,000	[5]	482,000	[5]
Alternative Investments [Member] | Significant Unobservable Inputs, Level 3 [Member]
Change in plan assets [Roll Forward]
Fair value of plan assets at end of year	0	[5]	0	[5]
Plan Assets [Abstract]
Fair value of plan assets	0	[5]	0	[5]
Director [Member] | Deferred Compensation Plan [Member]
401(k) Employee Stock Ownership Plan [Abstract]
Expense recognized under plan	125,000		107,000		89,000
Liability recorded for compensation plan	2,863,000		2,519,000
Deferred Compensation Arrangement with Individual, Shares credited	140,029		127,761
Pension Plans, Defined Benefit [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at the beginning of year	81,321,000		72,350,000
Service cost	2,959,000		2,780,000		3,496,000
Interest cost	4,497,000		3,909,000		3,676,000
Participant contributions	0		0
Plan acquisitions/amendment	17,511,000		882,000
Deferred actuarial loss (gain)	11,713,000		4,971,000
Benefits paid	(5,144,000)		(3,571,000)
Benefit obligation at end of year	112,857,000		81,321,000		72,350,000
Change in plan assets [Roll Forward]
Fair value of plan assets at beginning of year	96,439,000		74,628,000
Percentage of global equity securities invested in U.S. equity securities (in hundredths)	50.00%
Percentage of global equity securities invested in international equity securities (in hundredths)	50.00%
Total dividends and interest receivable excluded from plan assets	306,000		317,000
Employer contributions	11,623,000		15,624,000
Actual return of plan assets	1,479,000		9,758,000
Participant contributions	0		0
Employer contributions	11,623,000		15,624,000
Plan acquisition	21,912,000		0
Benefits paid	(5,144,000)		(3,571,000)
Fair value of plan assets at end of year	126,309,000		96,439,000		74,628,000
Percentage of global equity securities invested in U.S. equity securities (in hundredths)	50.00%
Percentage of global equity securities invested in international equity securities (in hundredths)	50.00%
Total dividends and interest receivable excluded from plan assets	306,000		317,000
Employer contributions	11,623,000		15,624,000
Defined Benefit Plan, Funded Status of Plan [Abstract]
Funded status at year end	13,452,000		15,118,000
Amounts recognized in the consolidated balance sheet [Abstract]
Other assets	22,929,000		23,777,000
Other liabilities	(9,477,000)		(8,659,000)
Amounts recognized in accumulated other comprehensive income (AOCI) [Abstract]
Net (gain) loss	44,119,000		28,152,000
Net prior service (credit) cost	(674,000)		(824,000)
Pre-tax adjustment to AOCI	43,445,000		27,328,000
Taxes	(16,738,000)		(10,529,000)
Net adjustment to AOCI	26,707,000		16,799,000
Projected benefit obligation	112,857,000		81,321,000		72,350,000
Amounts recognized in AOCI, net of tax [Abstract]
Prior service cost	92,000		96,000
Net (gain) loss	9,816,000		(307,000)
Total	9,908,000		(211,000)
Costs that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in net periodic (income) cost in next fiscal year [Abstract]
Prior service cost	(147,000)
Net loss	3,681,000
Total	3,534,000
Net periodic benefit cost [Abstract]
Service cost	2,959,000		2,780,000		3,496,000
Interest cost	4,497,000		3,909,000		3,676,000
Expected return on plan assets	(8,097,000)		(6,470,000)		(4,686,000)
Amortization of unrecognized net loss	2,362,000		2,421,000		2,761,000
Amortization of prior service cost	(149,000)		(189,000)		(123,000)
Amortization of transition obligation	0		0		0
Net periodic benefit cost	1,572,000		2,451,000		5,124,000
Prior service costs [Abstract]
Prior service costs associated with transferring individual nonqualified plans amortized on a straight-line basis (in years)	3Y
Maximum percentage of net gain or loss over the greater of the projected benefit obligation or the market-related value of assets without requiring amortization (hundredths)	10.00%
Weighed average assumption used in calculating benefit obligations [Abstract]
Discount rate (in hundredths)	4.10%		5.00%
Expected return on plan assets (in hundredths)	7.50%		7.50%
Rate of compensation increase (in hundredths)	4.00%		4.00%
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate (in hundredths)	4.40%		5.60%		6.10%
Expected return on plan assets (in hundredths)	7.50%		7.50%		8.00%
Rate of compensation increase (in hundredths)	4.00%		4.00%		4.00%
Estimated Future Benefit Payments [Abstract]
2012	6,259,000
2013	6,850,000
2014	7,224,000
2015	6,926,000
2016	7,555,000
2017-2021	42,873,000
Plan Assets [Abstract]
Target allocation percentage of assets, equity securities (in hundredths)	60.00%
Target allocation percentage of assets, debt securities (in hundredths)	40.00%
Maximum percentage of alternative investments authorized to be purchased (in hundredths)	15.00%
Maximum percentage of portfolio invested in company stock (in hundredths)	10.00%
Fair value of plan assets	126,309,000		96,439,000		74,628,000
Percentage of global equity securities invested in U.S. equity securities (in hundredths)	50.00%
Percentage of global equity securities invested in international equity securities (in hundredths)	50.00%
Total dividends and interest receivable excluded from plan assets	306,000		317,000
Employer contributions	11,623,000		15,624,000
Postretirement Benefit Plans, Defined Benefit [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at the beginning of year	3,594,000		4,449,000
Service cost	0		0		575,000
Interest cost	153,000		195,000		494,000
Participant contributions	706,000		529,000
Plan acquisitions/amendment	0		0
Deferred actuarial loss (gain)	46,000		(706,000)
Benefits paid	(1,147,000)		(873,000)
Benefit obligation at end of year	3,352,000		3,594,000		4,449,000
Change in plan assets [Roll Forward]
Fair value of plan assets at beginning of year	0		0
Employer contributions	441,000		344,000
Actual return of plan assets	0		0
Participant contributions	706,000		529,000
Employer contributions	441,000		344,000
Plan acquisition	0		0
Benefits paid	(1,147,000)		(873,000)
Fair value of plan assets at end of year	0		0		0
Employer contributions	441,000		344,000
Defined Benefit Plan, Funded Status of Plan [Abstract]
Funded status at year end	(3,352,000)		(3,594,000)
Amounts recognized in the consolidated balance sheet [Abstract]
Other assets	0		0
Other liabilities	(3,352,000)		(3,594,000)
Amounts recognized in accumulated other comprehensive income (AOCI) [Abstract]
Net (gain) loss	371,000		333,000
Net prior service (credit) cost	(3,339,000)		(4,397,000)
Pre-tax adjustment to AOCI	(2,968,000)		(4,064,000)
Taxes	1,135,000		1,557,000
Net adjustment to AOCI	(1,833,000)		(2,507,000)
Projected benefit obligation	3,352,000		3,594,000		4,449,000
Amounts recognized in AOCI, net of tax [Abstract]
Prior service cost	650,000		651,000
Net (gain) loss	24,000		(445,000)
Total	674,000		206,000
Costs that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in net periodic (income) cost in next fiscal year [Abstract]
Prior service cost	(823,000)
Net loss	12,000
Total	(811,000)
Net periodic benefit cost [Abstract]
Service cost	0		0		575,000
Interest cost	153,000		195,000		494,000
Expected return on plan assets	0		0		0
Amortization of unrecognized net loss	8,000		17,000		0
Amortization of prior service cost	(1,057,000)		(1,057,000)		54,000
Amortization of transition obligation	0		0		41,000
Net periodic benefit cost	(896,000)		(845,000)		1,164,000
Weighed average assumption used in calculating benefit obligations [Abstract]
Discount rate (in hundredths)	3.90%		4.50%
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
Discount rate (in hundredths)	4.50%		5.15%		6.10%
Estimated Future Benefit Payments [Abstract]
2012	390,000
2013	360,000
2014	284,000
2015	268,000
2016	229,000
2017-2021	1,009,000
Plan Assets [Abstract]
Fair value of plan assets	0		0		0
Employer contributions	441,000		344,000
Assumed Health Care Cost Trend Rates [Abstract]
Assumed health care cost trend rate for participants younger than 65 (in hundredths)	8.50%
Assumed health care cost trend rate for participants older than 65 (in hundredths)	6.75%
Assumed health care cost trend rate for prescription drugs (in hundredths)	8.50%
Ultimate health care cost trend rate (in hundredths)	5.00%
Year that rate reaches ultimate trend rate	2018
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract]
Effect of one percentage point increase on service and interest cost components	600
Effect of one percentage point increase on benefit obligation	14,000
Effect of One percentage point decrease on service and interest cost components	600
Effect of One percentage point decrease on benefit obligation	13,000
Pentegra DB Plan [Member] | Tupper Lake National Bank [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at the beginning of year						2,700,000,000
Benefit obligation at end of year						2,700,000,000
Change in plan assets [Roll Forward]
Fair value of plan assets at beginning of year						2,400,000,000
Multi-employer plan, contributions	131,000		39,000		21,000
Fair value of plan assets at end of year						2,400,000,000
Multi-employer plan, contributions	131,000		39,000		21,000
Defined Benefit Plan, Funded Status of Plan [Abstract]
Defined Benefit Plan, Minimum Percentage Plan Funded (in hundredths)						80.00%
Amounts recognized in accumulated other comprehensive income (AOCI) [Abstract]
Projected benefit obligation						2,700,000,000
Plan Assets [Abstract]
Fair value of plan assets						2,400,000,000
Multi-employer plan, contributions	131,000		39,000		21,000
Supplemental Employee Retirement Plans, Defined Benefit [Member]
Defined Benefit Plan, Funded Status of Plan [Abstract]
Funded status at year end			8,500,000		8,200,000
Unfunded Supplementary Pension Plans [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at end of year	9,300,000		8,500,000
Amounts recognized in accumulated other comprehensive income (AOCI) [Abstract]
Projected benefit obligation	9,300,000		8,500,000
Unfunded Stock Balance [Member] | Nonemployee Directors [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at end of year	200,000		100,000
Amounts recognized in accumulated other comprehensive income (AOCI) [Abstract]
Projected benefit obligation	$ 200,000		$ 100,000

[1] Excludes dividends and interest receivable totaling $306,000 and $317,000 at December 31, 2011 and 2010, respectively.

[2] This category includes securities that invest approximately 50% in U.S equity securities and 50% international equity securities.

[3] This category includes investments in exchange traded funds reflecting the performance of an underlying commodity index.

[4] This category is exchange traded funds representing a diversified index of high yield corporate bonds.

[5] This category is comprised of non-traditional investment classes including private equity funds and alternative exchange funds.

XML

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2011

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS [Abstract]

Gross carrying amount and accumulated amortization of identifiable intangible assets

The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows:

	As of December 31, 2011			As of December 31, 2010
	Gross		Net	Gross		Net
	Carrying	Accumulated	Carrying	Carrying	Accumulated	Carrying
(000's omitted)	Amount	Amortization	Amount	Amount	Amortization	Amount
Amortizing intangible assets:
Core deposit intangibles	$64,610	($53,091)	$11,519	$60,595	($49,698)	$10,897
Other intangibles	9,752	(5,757)	3,995	7,894	(4,769)	3,125
Total amortizing intangibles	$74,362	($58,848)	$15,514	$68,489	($54,467)	$14,022

Amortization expense

The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows:

2012	4,112
2013	3,304
2014	2,579
2015	1,905
2016	1,314
Thereafter	2,300
Total	$15,514

Components of goodwill

Shown below are the components of the Company's goodwill at December 31, 2011 and 2010:

	Year Ended		Year Ended		Year Ended
(000's omitted)	December 31, 2009	Activity	December 31, 2010	Activity	December 31, 2011
Goodwill	$302,516	$0	$302,516	$47,358	$349,874
Accumulated impairment	(4,824)	0	(4,824)	0	(4,824)
Goodwill, net	$297,692	$0	$297,692	$47,358	$345,050

Changes in Mortgage servicing rights

The following table summarizes the changes in carrying value of MSRs and the associated valuation allowance:

(000's omitted)	2011	2010
Balance at beginning of period	$2,773	$2,551
Additions	239	991
Amortization	(867)	(769)
Carrying value before valuation allowance at end of period	2,145	2,773
Valuation allowance balance at beginning of period	(351)	(80)
Impairment charges	(526)	(351)
Impairment recoveries	480	80
Valuation allowance balance at end of period	(397)	(351)
Net carrying value at end of period	$1,748	$2,422
Fair value of MSRs at end of period	$1,748	$2,422
Principal balance of loans sold during the year	$34,625	$119,018
Principal balance of loans serviced for others	$458,836	$496,269
Custodial escrow balances maintained in connection with loans serviced for others	$5,823	$6,139

Table of key economic assumptions used to estimate fair value of MSRs

The following table summarizes the key economic assumptions used to estimate the value of the MSRs at December 31:

	2011	2010
Weighted-average contractual life (in years)	19.5	20.2
Weighted-average constant prepayment rate (CPR)	24.7%	19.2%
Weighted-average discount rate	3.2%	4.9%

XML

PARENT COMPANY STATEMENTS (Details) (USD $) In Thousands, unless otherwise specified	1 Months Ended	12 Months Ended
	Jan. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Assets:
Cash and cash equivalents		$ 324,878	$ 211,837	$ 361,876
Other assets		107,584	83,129
Total assets		6,488,275	5,444,506	5,402,813
Liabilities and shareholders' equity:
Accrued interest and other liabilities		88,118	72,719
Borrowings		102,048	102,024
Shareholders' equity		774,583	607,258	565,697	544,651
Total liabilities and shareholders' equity		6,488,275	5,444,506
Revenues:
Other income		89,222	88,792	83,535
Expenses:
Interest on long-term notes and debentures		5,801	5,960	6,153
Other expenses		12,869	12,436	11,508
Income (Loss) before income taxes		103,527	86,385	53,067
Income tax benefit		(30,385)	(23,065)	(11,622)
Net income		73,142	63,320	41,445
Operating activities:
Net income		73,142	63,320	41,445
Adjustments to reconcile net income to net cash provided by operating activities
Net change in other assets and other liabilities		14,269	3,554	37,566
Investing activities:
Net cash (used in)/provided by investing activities		(26,134)	(207,250)	(86,572)
Financing activities:
Issuance of common stock	57,500
Net cash provided by / (used in) financing activities		41,358	(39,877)	190,561
Change in cash and cash equivalents		113,041	(150,039)	148,123
Cash and cash equivalents at beginning of year	324,878	211,837	361,876	213,753
Cash and cash equivalents at end of year		324,878	211,837	361,876
Supplemental disclosures of cash flow information:
Cash paid for interest		61,564	67,485	85,011
Supplemental disclosures of noncash financing activities
Dividends declared and unpaid		9,609	7,976	7,211
Parent Company [Member]
Assets:
Cash and cash equivalents		38,853	35,969	57,097
Investment securities		3,572	3,612
Investment in and advances to subsidiaries		838,130	674,516
Other assets		8,145	8,243
Total assets		888,700	722,340
Liabilities and shareholders' equity:
Accrued interest and other liabilities		12,069	13,058
Borrowings		102,048	102,024
Shareholders' equity		774,583	607,258
Total liabilities and shareholders' equity		888,700	722,340
Revenues:
Dividends from subsidiaries		52,251	3,500	36,000
Interest and dividends on investments		87	345	656
Other income		0	2	45
Total revenues		52,338	3,847	36,701
Expenses:
Interest on long-term notes and debentures		5,815	5,960	6,153
Other expenses		273	14	101
Total expenses		6,088	5,974	6,254
Income (Loss) before income taxes		46,250	(2,127)	30,447
Income tax benefit		2,237	2,131	1,529
Income before equity in undistributed net income (loss) of subsidiaries		48,487	4	31,976
Equity in undistributed net income (loss) of subsidiaries		24,655	63,316	9,469
Net income		73,142	63,320	41,445
Operating activities:
Net income		73,142	63,320	41,445
Gain on sale of fixed assets and investment securities		0	0	(7)
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed net (income)/loss of subsidiaries		(24,655)	(63,316)	(9,469)
Net change in other assets and other liabilities		(504)	(2,397)	1,190
Net cash provided by (used in) operating activities		47,983	(2,393)	33,159
Investing activities:
Purchase of investment securities		0	(10)	0
Proceeds from sale of investment securities		2	0	26
Repayments from/(advances to) subsidiaries		51	1,712	1,656
Capital contributions to subsidiaries		(102,462)	0	0
Net cash (used in)/provided by investing activities		(102,409)	1,702	1,682
Financing activities:
Issuance of common stock		91,714	9,957	4,341
Cash dividends paid		(34,404)	(30,394)	(28,789)
Net cash provided by / (used in) financing activities		57,310	(20,437)	(24,448)
Change in cash and cash equivalents		2,884	(21,128)	10,393
Cash and cash equivalents at beginning of year		35,969	57,097	46,704
Cash and cash equivalents at end of year		38,853	35,969	57,097
Supplemental disclosures of cash flow information:
Cash paid for interest		5,959	5,960	6,283
Supplemental disclosures of noncash financing activities
Dividends declared and unpaid		$ 9,609	$ 7,976	$ 7,211

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EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2011

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE M:  EARNINGS PER SHARE

Basic earnings per share are computed based on the weighted-average common shares outstanding for the period.  Diluted earnings per share are based on the weighted-average shares outstanding adjusted for the dilutive effect of restricted stock and the assumed exercise of stock options during the year.  The dilutive effect of options is calculated using the treasury stock method of accounting.  The treasury stock method determines the number of common shares that would be outstanding if all the dilutive options (those where the average market price is greater than the exercise price) were exercised and the proceeds were used to repurchase common shares in the open market at the average market price for the applicable time period.  There were approximately 0.6 million, 1.2 million and 2.4 million weighted-average anti-dilutive stock options outstanding at December 31, 2011, 2010 and 2009, respectively, which were not included in the computation below.

The following is a reconciliation of basic to diluted earnings per share for the years ended December 31, 2011, 2010 and 2009.

(000's omitted, except per share data)	2011	2010	2009
Net income	$73,142	$63,320	$41,445
Income attributable to unvested stock-based compensation awards	(553)	(542)	(215)
Income available to common shareholders	$72,589	$62,778	$41,230
Weighted-average common shares outstanding - basic	35,767	32,951	32,673
Basic earnings per share	$2.03	$1.91	$1.26
Net income	$73,142	$63,320	$41,445
Income attributable to unvested stock-based compensation awards	(553)	(542)	(215)
Income available to common shareholders	$72,589	$62,778	$41,230
Weighted-average common shares outstanding	35,767	32,951	32,673
Assumed exercise of stock options	415	318	148
Weighted-average common shares outstanding – diluted	36,182	33,269	32,821
Diluted earnings per share	$2.01	$1.89	$1.26

Stock Repurchase Program

On July 22, 2009, the Company announced an authorization to repurchase up to 1,000,000 of its outstanding shares in open market transactions or privately negotiated transactions in accordance with securities laws and regulations through December 31, 2011.  Any repurchased shares will be used for general corporate purposes, including those related to stock plan activities.  The timing and extent of repurchases will depend on market conditions and other corporate considerations as determined at the Company's discretion.  There were no treasury stock purchases in 2011 or 2010.  At its December 2011 meeting, the Board approved extending the stock repurchase program authorizing the repurchase, at the discretion of senior management, of up to 1,500,000 shares through December 31, 2012.  

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DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2011

DEPOSITS [Abstract]

Deposits

Deposits consist of the following at December 31:

(000's omitted)	2011	2010
Noninterest checking	$894,464	$741,166
Interest checking	918,716	721,391
Savings	660,981	546,649
Money market	1,196,835	1,003,973
Time	1,124,249	920,866
Total deposits	$4,795,245	$3,934,045

Maturities of time deposits in denominations of $100,000 and greater

The approximate maturities of these time deposits at December 31, 2011 are as follows:

(000's omitted)	Amount
2012	$193,223
2013	44,992
2014	26,746
2015	9,610
2016	10,648
Thereafter	3,167
Total	$288,386

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LEASES

12 Months Ended

Dec. 31, 2011

LEASES [Abstract]

LEASES

NOTE O:  LEASES

The Company leases buildings, office space, and equipment under agreements that expire in various years.  Rental expense included in operating expenses amounted to $4.2 million, $3.9 million and $4.0 million in 2011, 2010 and 2009, respectively.  The future minimum rental commitments as of December 31, 2011 for all non-cancelable operating leases are as follows:

2012	$4,650
2013	4,164
2014	3,046
2015	2,078
2016	1,814
Thereafter	5,740
Total	$21,492

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SEGMENT INFORMATION (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Information about reportable segments
Net interest income	$ 209,413	$ 181,684	$ 165,500
Provision for loan losses	4,736	7,205	9,790
Noninterest income	89,222	88,792	83,535
Amortization of intangible assets	4,381	5,957	8,170
Goodwill Impairment	0	0	3,079
Other operating expenses	185,991	170,929	174,929
Income (Loss) before income taxes	103,527	86,385	53,067
Assets	6,488,275	5,444,506	5,402,813
Goodwill	345,050	297,692	297,692
Banking [Member]
Information about reportable segments
Net interest income	209,302	181,582	165,429
Provision for loan losses	4,736	7,205	9,790
Noninterest income	46,921	49,342	47,133
Amortization of intangible assets	3,393	5,081	7,176
Goodwill Impairment	0		0
Other operating expenses	152,468	140,267	143,760
Income (Loss) before income taxes	95,626	78,371	51,836
Assets	6,461,694	5,420,990	5,378,916
Goodwill	334,554	287,412	287,412
Other [Member]
Information about reportable segments
Net interest income	111	102	71
Provision for loan losses	0	0	0
Noninterest income	44,142	41,066	37,708
Amortization of intangible assets	988	876	994
Goodwill Impairment	0		3,079
Other operating expenses	35,364	32,278	32,475
Income (Loss) before income taxes	7,901	8,014	1,231
Assets	38,557	33,129	35,201
Goodwill	10,496	10,280	10,280
Elimination [Member]
Information about reportable segments
Net interest income	0	0	0
Provision for loan losses	0	0	0
Noninterest income	(1,841)	(1,616)	(1,306)
Amortization of intangible assets	0	0	0
Goodwill Impairment	0		0
Other operating expenses	(1,841)	(1,616)	(1,306)
Income (Loss) before income taxes	0	0	0
Assets	(11,976)	(9,613)	(11,304)
Goodwill	$ 0	$ 0	$ 0

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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Dividends declared
Dividends declared per common share (in dollars per share)	$ 1.00	$ 0.94	$ 0.88
Tax benefits of common stock issued under stock plan	$ 703	$ 842	$ 213

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CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Assets
Available-for-sale investment securities, cost	$ 1,453,460	$ 1,076,030
Held-to-maturity investment securities, fair value	$ 617,835	$ 625,789
Shareholders' equity
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, authorized (in shares)	500,000	500,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, issued (in shares)	37,794,532	34,131,289
Treasury stock, shares at cost (in shares)	(808,123)	(812,346)

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BORROWINGS

12 Months Ended

Dec. 31, 2011

BORROWINGS [Abstract]

BORROWINGS

NOTE H:  BORROWINGS

Outstanding borrowings at December 31 are as follows:

(000's omitted)	2011	2010
Federal Home Loan Bank advances	$728,235	$728,428
Commercial loans sold with recourse	0	26
Capital lease obligations	46	6
Subordinated debt held by unconsolidated subsidiary trusts,
net of discount of $479 and $503, respectively	102,048	102,024
Total borrowings	$830,329	$830,484

Borrowings at December 31, 2011 have contractual maturity dates as follows:

		Weighted-average
	Carrying	Rate at
(000's omitted, except rate)	Value	December 31, 2011
July 15, 2012	$3	4.30%
January 17, 2013	235	4.00%
April 1, 2013	6	5.55%
January 1, 2014	5	7.42%
February 1, 2015	32	3.25%
June 22, 2015 (Callable)	50,000	3.62%
October 14, 2015 (Callable)	15,000	3.95%
November 10, 2015 (Callable)	75,000	4.24%
January 27, 2016 (Callable)	10,000	3.98%
May 19, 2016 (Callable)	100,000	4.72%
August 8, 2016 (Callable)	60,000	4.28%
October 11, 2016 (Callable)	25,000	4.62%
October 11, 2016 (Callable)	25,000	4.35%
July 31, 2017 (Callable)	50,000	4.05%
July 31, 2017 (Callable)	50,000	4.04%
July 31, 2017 (Callable)	100,000	4.03%
December 21, 2017 (Callable)	31,600	3.16%
December 21, 2017 (Callable)	126,400	3.40%
January 25, 2018 (Callable)	10,000	2.73%
July 31, 2031	24,728	4.01%
December 15, 2036	77,320	2.20%
Total	$830,329	3.84%

The weighted-average interest rate on borrowings was 4.25% and 4.29% for the years ended December 31, 2011 and 2010, respectively.  Instruments noted above as callable are Federal Home Loan Bank advances.  These advances have characteristics that include an initial lockout period, followed by a quarterly call option at the discretion of the Federal Home Loan Bank. Federal Home Loan Bank advances are collateralized by a blanket lien on the Company's residential real estate loan portfolio and various investment securities.

The Company sponsors two business trusts, Community Statutory Trust III and Community Capital Trust IV, of which 100% of the common stock is owned by the Company.  The trusts were formed for the purpose of issuing company-obligated mandatorily redeemable preferred securities to third-party investors and investing the proceeds solely in junior subordinated debt securities of the Company. The debentures held by each trust are the sole assets of that trust.  Distributions on the preferred securities issued by each trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the debentures held by that trust.  The preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures.  The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities subject to the terms of each of the guarantees.  The terms of the preferred securities of each trust are as follows:

	Issuance		Interest	Maturity	Call	Call
	Date	Amount	Rate	Date	Provision	Price
III	7/31/2001	$24,450	3 month LIBOR plus 3.58% (4.01%)	7/31/2031	5 year beginning 2006	Par
IV	12/8/2006	$75,000	3 month LIBOR plus 1.65% (2.20%)	12/15/2036	5 year beginning 2011	Par

On December 8, 2006, the Company established Community Capital Trust IV, which completed the sale of $75 million of trust preferred securities.  At the time of the offering, the Company also entered into an interest rate swap agreement to convert the variable rate trust preferred securities into fixed rate securities for a term of five years at a fixed rate of 6.43%.  The interest rate swap agreement expired December 15, 2011.  Additional interest expense of $3.2 million and $3.4 million was recognized in the years ended December 31, 2011 and 2010, respectively, due to the interest rate swap agreement.

XML

Document And Entity Information (USD $)	12 Months Ended
	Dec. 31, 2011	Jan. 31, 2012	Jun. 30, 2011
Entity Registrant Name	COMMUNITY BANK SYSTEM INC
Entity Central Index Key	0000723188
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 858,986,069
Entity Common Stock, Shares Outstanding		39,196,328
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011

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INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

INCOME TAXES

NOTE I:  INCOME TAXES

The provision for income taxes for the years ended December 31 is as follows:

(000's omitted)	2011	2010	2009
Current:
Federal	$17,145	$13,090	$6,400
State and other	375	776	1,788
Deferred:
Federal	10,674	7,633	3,929
State and other	2,191	1,566	(495)
Provision for income taxes	$30,385	$23,065	$11,622

Components of the net deferred tax liability, included in other liabilities, as of December 31 are as follows:

(000's omitted)	2011	2010
Allowance for loan losses	$16,371	$16,437
Employee benefits	6,718	5,843
Interest rate swap	0	1,243
Debt extinguishment	1,821	2,111
Other	2,169	1,440
Deferred tax asset	27,079	27,074
Investment securities	37,386	7,487
Intangible assets	9,448	16,962
Loan origination costs	5,041	4,397
Depreciation	5,779	3,700
Mortgage servicing rights	678	933
Pension	2,860	4,163
Prepaid FDIC insurance	3,079	2,913
Deferred tax liability	64,271	40,555
Net deferred tax liability	($37,192)	($13,481)

The Company has a state tax net operating loss carry forward of $25.7 million that resulted in a gross deferred tax asset of $1.4 million prior to federal tax effect.  This net operating loss carry forward will expire between 2026 and 2029, but is expected to be substantially utilized over the next two years and completely utilized over the next five years.

The Company has determined that no valuation allowance is necessary as it is more likely than not that the gross deferred tax assets will be realized through carryback of future deductions to taxable income in prior years, future reversals of existing temporary differences, and through future taxable income.

A reconciliation of the differences between the federal statutory income tax rate and the effective tax rate for the years ended December 31 is shown in the following table:

	2011	2010	2009
Federal statutory income tax rate	35.0%	35.0%	35.0%
Increase (reduction) in taxes resulting from:
Tax-exempt interest	(7.1)	(8.3)	(14.1)
State income taxes, net of federal benefit	1.6	1.8	1.7
Other	(0.1)	(1.8)	(0.7)
Effective income tax rate	29.4%	26.7%	21.9%

A reconciliation of the unrecognized tax benefits for the years ended December 31 is shown in the following table:

(000's omitted)	2011	2010	2009
Unrecognized tax benefits at beginning of year	$98	$708	$856
Changes related to:
Positions taken during the current year	35	35	79
Settlements with taxing authorities	0	(408)	0
Lapse of statutes of limitation	0	(237)	(227)
Unrecognized tax benefits at end of year	$133	$98	$708

As of December 31, 2011, the total amount of unrecognized tax benefits that would impact the Company's effective tax rate if recognized is $0.1 million.  It is reasonably possible that the amount of unrecognized tax benefits could change in the next twelve months as a result of the New York State examination and expiration of statutes of limitations on prior tax returns.

The Company's policy is to recognize interest and penalties related to unrecognized tax benefits as part of income taxes in the consolidated statement of income.  The accrued interest related to tax positions was approximately $10,000 at December 31, 2011 and $20,000 at December 31, 2010 and $0.2 million at December 31, 2009.

The Company's federal and state income tax returns are routinely subject to examination from various governmental taxing authorities.  Such examinations may result in challenges to the tax return treatment applied by the Company to specific transactions.  Management believes that the assumptions and judgment used to record tax-related assets or liabilities have been appropriate.  Future examinations by taxing authorities of the Company's federal or state tax returns could have a material impact on the Company's results of operations.  The Company's federal income tax returns for years after 2007 may still be examined by the Internal Revenue Service.  New York State income tax returns for years after 2007 may still be examined by the New York Department of Taxation and Finance.  It is not possible to estimate when those examinations may be completed.

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CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Interest income:
Interest and fees on loans	$ 192,981	$ 178,703	$ 185,119
Interest and dividends on taxable investments	55,634	47,241	40,030
Interest and dividends on nontaxable investments	22,354	22,337	23,633
Total interest income	270,969	248,281	248,782
Interest expense:
Interest on deposits	26,156	30,559	45,776
Interest on borrowings	29,599	30,078	31,353
Interest on subordinated debt held by unconsolidated subsidiary trusts	5,801	5,960	6,153
Total interest expense	61,556	66,597	83,282
Net interest income	209,413	181,684	165,500
Less: provision for loan losses	4,736	7,205	9,790
Net interest income after provision for loan losses	204,677	174,479	155,710
Noninterest income:
Deposit service fees	42,334	43,358	41,285
Other banking services	4,651	5,985	5,841
Benefit trust, administration, consulting and actuarial fees	31,601	29,616	27,771
Wealth management services	10,697	9,833	8,631
(Loss) gain on investment securities and debt extinguishments, net	(61)	0	7
Total noninterest income	89,222	88,792	83,535
Operating expenses:
Salaries and employee benefits	102,278	91,399	92,690
Occupancy and equipment	24,502	22,933	23,185
Data processing and communications	20,525	20,720	20,684
Amortization of intangible assets	4,381	5,957	8,170
Legal and professional fees	5,889	5,532	5,302
Office supplies and postage	5,246	5,469	5,243
Business development and marketing	5,931	5,237	6,086
FDIC insurance premiums	3,920	5,838	8,610
Goodwill Impairment	0	0	3,079
Acquisition expenses and contract termination charges	4,831	1,365	1,621
Other	12,869	12,436	11,508
Total noninterest expenses	190,372	176,886	186,178
Income (Loss) before income taxes	103,527	86,385	53,067
Income taxes	30,385	23,065	11,622
Net income	$ 73,142	$ 63,320	$ 41,445
Basic earnings per share (in dollars per share)	$ 2.03	$ 1.91	$ 1.26
Diluted earnings per share (in dollars per share)	$ 2.01	$ 1.89	$ 1.26
Cash dividends declared per share (in dollars per share)	$ 1.00	$ 0.94	$ 0.88

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INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2011

INVESTMENT SECURITIES [Abstract]

INVESTMENT SECURITIES

NOTE C:  INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities as of December 31 are as follows:

	2011				2010
		Gross	Gross	Estimated		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair	Amortized	Unrealized	Unrealized	Fair
(000's omitted)	Cost	Gains	Losses	Value	Cost	Gains	Losses	Value
Held-to-Maturity Portfolio:
U.S. Treasury and agency securities	$448,260	$56,800	$0	$505,060	$478,100	$21,571	$29	$499,642
Obligations of state and political subdivisions	69,623	5,088	0	74,711	67,864	277	1,691	66,450
Government agency mortgage-backed securities	35,576	2,452	0	38,028	56,891	2,753	0	59,644
Other securities	36	0	0	36	53	0	0	53
Total held-to-maturity portfolio	553,495	$64,340	$0	617,835	602,908	$24,601	$1,720	625,789
Available-for-Sale Portfolio:
Obligations of state and political subdivisions	543,527	$29,721	$236	573,012	518,216	$10,197	$6,195	522,218
U.S. Treasury and agency securities	463,922	56,626	0	520,548	281,826	22,231	0	304,057
Government agency mortgage-backed securities	310,541	20,840	2	331,379	170,673	9,159	116	179,716
Pooled trust preferred securities	68,115	0	24,269	43,846	69,508	0	27,515	41,993
Government agency collateralized mortgage obligations	45,481	1,572	110	46,943	9,904	491	0	10,395
Corporate debt securities	21,495	1,360	0	22,855	25,523	1,634	0	27,157
Marketable equity securities	380	92	82	390	380	54	7	427
Subtotal	1,453,461	110,211	24,699	1,538,973	1,076,030	43,766	33,833	1,085,963
Net unrealized gain on    available-for-sale portfolio	85,512			–	9,933			–
Total available-for-sale portfolio	1,538,973	$110,211	$24,699	1,538,973	1,085,963	$43,766	$33,833	1,085,963
Other Securities:
Federal Home Loan Bank common stock	38,343			38,343	37,301			37,301
Federal Reserve Bank common stock	15,451			15,451	12,378			12,378
Other equity securities	5,108			5,108	3,774			3,774
Total other securities	58,902			58,902	53,453			53,453
Total	$2,151,370			$2,215,710	$1,742,324			$1,765,205

A summary of investment securities that have been in a continuous unrealized loss position for less than or greater than twelve months is as follows:

As of December 31, 2011

		Less than 12 Months			12 Months or Longer			Total
			Gross			Gross			Gross
		Fair	Unrealized		Fair	Unrealized		Fair	Unrealized
(000's omitted)	#	Value	Losses	#	Value	Losses	#	Value	Losses
Available-for-Sale Portfolio:
Obligations of state and political subdivisions	2	$211	$0	6	$6,038	$236	8	$6,249	$236
Pooled trust preferred securities	0	0	0	3	43,019	24,269	3	43,019	24,269
Government agency mortgage-backed securities	3	2,415	2	0	0	0	3	2,415	2
Government agency collateralized mortgage       obligations	17	6,648	110	0	0	0	17	6,648	110
Marketable equity securities	1	123	78	3	12	4	4	135	82
Total available-for-sale/investment portfolio	23	$9,397	$190	12	$49,069	$24,509	35	$58,466	$24,699

As of December 31, 2010

		Less than 12 Months			12 Months or Longer			Total
			Gross			Gross			Gross
		Fair	Unrealized		Fair	Unrealized		Fair	Unrealized
(000's omitted)	#	Value	Losses	#	Value	Losses	#	Value	Losses
Held-to-Maturity Portfolio:
U.S. Treasury and agency securities	2	$14,967	$29	0	$0	$0	2	$14,967	$29
Obligations of state and political subdivisions	48	43,851	1,691	0	0	0	48	43,851	1,691
Total held-to-maturity portfolio	50	58,818	1,720	0	0	0	50	58,818	1,720
Available-for-Sale Portfolio:
Obligations of state and political subdivisions	174	197,066	5,705	4	4,049	490	178	201,115	6,195
Pooled trust preferred securities	0	0	0	3	41,993	27,515	3	41,993	27,515
Government agency mortgage-backed securities	6	14,690	116	0	0	0	6	14,690	116
Marketable equity securities	2	210	2	3	11	5	5	221	7
Total available-for-sale portfolio	182	211,966	5,823	10	46,053	28,010	192	258,019	33,833
Total investment portfolio	232	$270,784	$7,543	10	$46,053	$28,010	242	$316,837	$35,553

Included in the available-for-sale portfolio are pooled trust preferred, class A-1 securities with a current par value of $69.6 million and unrealized losses of $24.3 million at December 31, 2011.  The underlying collateral of these assets is principally trust-preferred securities of smaller regional banks and insurance companies.  The Company's securities are in the super-senior cash flow tranche of the investment pools.  All other tranches in these pools will incur losses before this tranche is impacted.  An additional 35% - 38% of the underlying collateral would have to be in deferral or default concurrently to result in the non-receipt of contractual cash flows.

In determining if unrealized losses are other-than-temporary, management considers the following factors: the length of time and extent that fair value has been less than cost, the financial condition and near term prospects of the issuers, any external credit ratings, the level of excess cash flows generated from the underlying collateral supporting the principal and interest payments of the debt securities, the level of credit enhancement provided by the structure, and the Company's ability and intent to hold the security for a period sufficient to allow for any anticipated recovery in fair value.  A detailed review of the pooled trust preferred securities was completed as of December 31, 2011.  This review included an analysis of collateral reports, a cash flow analysis, including varying degrees of projected deferral/default scenarios, and a review of various financial ratios of the underlying issuers.  Based on the analysis performed, significant further deferral/defaults and further erosion in other underlying performance conditions would have to exist before the Company would incur a loss.  Therefore, the Company determined an other-than-temporary impairment did not exist at December 31, 2011.  To date, the Company has received all scheduled principal and interest payments and expects to fully collect all future contractual principal and interest payments. The Company does not intend to sell the securities nor is it more likely than not that the Company will be required to sell the securities.   Subsequent changes in market or credit conditions could change those evaluations.

Management does not believe any individual unrealized loss as of December 31, 2011 represents an other-than-temporary impairment.  The unrealized losses reported pertaining to government guaranteed mortgage-backed securities relate primarily to securities issued by GNMA, FNMA and FHLMC, who are currently rated AAA by Moody's Investor Services, AA+ by Standard & Poor's and are guaranteed by the U.S. government.  The obligations of state and political subdivisions are largely general-purpose debt obligations of various states and political subdivisions.  The majority of the municipal portfolio carries a credit rating of A or better, as well as, a secondary level of credit enhancement.  The unrealized losses in the portfolios are primarily attributable to changes in interest rates.  The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost.

The amortized cost and estimated fair value of debt securities at December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Held-to-Maturity		Available-for-Sale
	Amortized	Fair	Amortized	Fair
(000's omitted)	Cost	Value	Cost	Value
Due in one year or less	$11,074	$11,183	$30,838	$31,243
Due after one through five years	152,584	169,672	211,594	224,297
Due after five years through ten years	285,481	321,967	413,159	449,799
Due after ten years	68,780	76,985	441,468	454,922
Subtotal	517,919	579,807	1,097,059	1,160,261
Collateralized mortgage obligations	0	0	45,481	46,943
Mortgage-backed securities	35,576	38,028	310,541	331,379
Total	$553,495	$617,835	$1,453,081	$1,538,583

Cash flow information on investment securities for the years ended December 31 is as follows:

(000's omitted)	2011	2010	2009
Gross gains on sales of investment securities	349	0	7
Gross losses on sales of investment securities	319	0	0
Proceeds from the maturities of mortgage-backed securities and CMO's	97,224	93,171	101,176
Purchases of mortgage-backed securities and CMO's	253,378	9,132	214,275

Investment securities with a carrying value of $1.015 billion and $848.6 million at December 31, 2011 and 2010, respectively, were pledged to collateralize certain deposits and borrowings.

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ACQUISITIONS

12 Months Ended

Dec. 31, 2011

ACQUISITIONS [Abstract]

ACQUISITIONS

NOTE B:  ACQUISITIONS

On November 30, 2011 the Company, through its BPAS subsidiary, acquired certain assets and liabilities of CAI Benefits, Inc. (“CAI”), a provider of actuarial, consulting and retirement plan administration services, with offices in New York City and Northern New Jersey.  The results of CAI's operations have been included in the consolidated financial statements since that date.  The transaction adds valuable service capacity and enhances distribution prospects in support of the Company's broader-based employee benefits business, including daily valuation plan and collective investment fund administration.

On April 8, 2011, the Company acquired The Wilber Corporation (“Wilber”), parent company of Wilber National Bank, for approximately $103 million in stock and cash, comprised of $20.4 million in cash and the issuance of 3.35 million additional shares of the Company's common stock.  Based in Oneonta, New York, Wilber operated 22 branches in the Central, Greater Capital District, and Catskill regions of Upstate New York.  Wilber was merged into the Company and Wilber National Bank was merged into Community Bank, N.A.  The results of Wilber's operations have been included in the Company's financial statements since that date.

The assets and liabilities assumed in these acquisitions were recorded at their estimated fair values based on management's best estimates using information available at the dates of the acquisitions.  The following table summarizes the estimated fair value of the assets acquired and liabilities assumed.

(000's omitted)
Consideration paid:
Community Bank System, Inc. common stock	$82,580
Cash	22,155
Total consideration paid	104,735
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	26,901
Investment securities	297,573
Loans	462,334
Premises and equipment	6,360
Accrued interest receivable	2,615
Other assets and liabilities, net	46,943
Core deposit intangibles	4,015
Other intangibles	1,858
Deposits	(771,554)
Borrowings	(19,668)
Total identifiable assets	57,377
Goodwill	$  47,358

The above recognized amounts of assets and liabilities, at fair value, are subject to adjustment based on updated information not available at the time of acquisition.

Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments were aggregated by comparable characteristics and  recorded at fair value without a carryover of the related allowance for loan losses.  Cash flows for each pool were determined using an estimate of future credit losses and an estimated rate of prepayments.  Projected monthly cash flows were then discounted to present value using a market-based discount rate.  The excess of the undiscounted expected cash flows over the estimated fair value is referred to as the “accretable yield” and is recognized into interest income over the remaining lives of the acquired loans.

The following is a summary of the loans acquired in the Wilber acquisition:

(000's omitted)	Acquired Impaired Loans	Acquired Non-Impaired Loans	Total Acquired Loans
Contractually required principal and interest at acquisition	$41,730	$680,516	$722,246
Contractual cash flows not expected to be collected	(20,061)	(31,115)	(51,176)
Expected cash flows at acquisition	21,669	649,401	671,070
Interest component of expected cash flows	(2,509)	(206,227)	(208,736)
Fair value of acquired loans	$19,160	$443,174	$462,334

The core deposit intangible and customer lists are being amortized over their estimated useful life of approximately eight years, using an accelerated method.  The goodwill, which is not amortized for book purposes, was assigned to the Banking segment for the Wilber acquisition and to the Other segment for the CAI acquisition. The goodwill arising from the Wilber acquisition  is not deductible for tax purposes while goodwill arising from the CAI acquisition is deductible for tax purposes.

The fair value of checking, savings and money market deposit accounts acquired from Wilber were assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand.  Certificate of deposit accounts were valued as the present value of the certificates expected contractual payments discounted at market rates for similar certificates.

Direct costs related to the acquisitions were expensed as incurred.  During 2011, the Company incurred $4.8 million of merger and acquisition integration related expenses and have been separately stated in the Consolidated Statements of Income.

Supplemental Pro Forma Financial Information

The following unaudited condensed pro forma information assumes the Wilber acquisition had been completed as of January 1, 2011 for the year ended December 31, 2011 and January 1, 2010 for the year ended December 31, 2010. The pro forma information does not include amounts related to CAI as the amounts were immaterial and financial information is not available. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the years presented, nor is it indicative of the Company's future results. Furthermore, the unaudited pro forma information does not reflect management's estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain acquiree accounting policies to the Company's policies that may have occurred as a result of the integration and consolidation of the acquisitions.

The pro forma information set forth below reflects adjustments related to (a) certain purchase accounting fair value adjustments; (b) amortization of core deposit and other intangibles; and (c) income tax rate adjustment.  Expenses related to the conversion of systems and other costs of integration, as well as certain one-time costs, are included in the periods in which they were incurred.

	Pro Forma (Unaudited) Year Ended December 31,
(000's omitted)	2011	2010
Total revenue, net of interest expense	$308,559	$314,425
Net income	70,424	68,176
Earnings per share:
Basic	$1.92	$1.88
Diluted	$1.89	$1.85

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COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS

12 Months Ended

Dec. 31, 2011

COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS [Abstract]

COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS

NOTE N:  COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments consist primarily of commitments to extend credit and standby letters of credit.  Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee.  These commitments consist principally of unused commercial and consumer credit lines.  Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of an underlying contract with a third party.  The credit risks associated with commitments to extend credit and standby letters of credit are essentially the same as that involved with extending loans to customers and are subject to normal credit policies.  Collateral may be obtained based on management's assessment of the customer's creditworthiness.  The fair value of the standby letters of credit is immaterial for disclosure.   The contract amount of commitment and contingencies is as follows:

(000's omitted)	2011	2010
Commitments to extend credit	$572,393	$445,625
Standby letters of credit	25,279	21,456
Total	$597,672	$467,081

The Company has unused lines of credit of $65.0 million at December 31, 2011.  The Company has unused borrowing capacity of approximately $424.4 million through collateralized transactions with the Federal Home Loan Bank and $16.4 million through collateralized transactions with the Federal Reserve Bank.

The Company is required to maintain a reserve balance, as established by the Federal Reserve Bank of New York.  The required average total reserve for the 14-day maintenance period of December 29, 2011 through January 11, 2012 was $28.5 million of which $2.0 million was required to be on deposit with the Federal Reserve Bank of New York.  The remaining $26.5 million was represented by cash on hand.

The Company is subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. Management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against the Company will be material to its consolidated financial position. On an on-going basis the Company assesses its liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $2 million. Although the Company does not believe that the outcome of pending litigations 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.

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LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES

12 Months Ended

Dec. 31, 2011

LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES [Abstract]

LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES

NOTE J:  LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES

The Company's ability to pay dividends to its shareholders is largely dependent on the Bank's ability to pay dividends to the Company.  In addition to state law requirements and the capital requirements discussed below, the circumstances under which the Bank may pay dividends are limited by federal statutes, regulations, and policies.  For example, as a national bank, the Bank must obtain the approval of the Office of the Comptroller of the Currency (“OCC”) for payments of dividends if the total of all dividends declared in any calendar year would exceed the total of the Bank's net profits, as defined by applicable regulations, for that year, combined with its retained net profits for the preceding two years.  Furthermore, the Bank may not pay a dividend in an amount greater than its undivided profits then on hand after deducting its losses and bad debts, as defined by applicable regulations.  At December 31, 2011, the Bank had approximately $92 million in undivided profits legally available for the payments of dividends.

In addition, the Federal Reserve Board and the OCC are authorized to determine under certain circumstances that the payment of dividends would be an unsafe or unsound practice and to prohibit payment of such dividends.  The Federal Reserve Board has indicated that banking organizations should generally pay dividends only out of current operating earnings.

There are also statutory limits on the transfer of funds to the Company by its banking subsidiary, whether in the form of loans or other extensions of credit, investments or assets purchases.  Such transfer by the Bank to the Company generally is limited in amount to 10% of the Bank's capital and surplus, or 20% in the aggregate.  Furthermore, such loans and extensions of credit are required to be collateralized in specific amounts.

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GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS [Abstract]

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

NOTE F:  GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS

The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows:

	As of December 31, 2011			As of December 31, 2010
	Gross		Net	Gross		Net
	Carrying	Accumulated	Carrying	Carrying	Accumulated	Carrying
(000's omitted)	Amount	Amortization	Amount	Amount	Amortization	Amount
Amortizing intangible assets:
Core deposit intangibles	$64,610	($53,091)	$11,519	$60,595	($49,698)	$10,897
Other intangibles	9,752	(5,757)	3,995	7,894	(4,769)	3,125
Total amortizing intangibles	$74,362	($58,848)	$15,514	$68,489	($54,467)	$14,022

The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows:

2012	4,112
2013	3,304
2014	2,579
2015	1,905
2016	1,314
Thereafter	2,300
Total	$15,514

Shown below are the components of the Company's goodwill at December 31, 2011 and 2010:

	Year Ended		Year Ended		Year Ended
(000's omitted)	December 31, 2009	Activity	December 31, 2010	Activity	December 31, 2011
Goodwill	$302,516	$0	$302,516	$47,358	$349,874
Accumulated impairment	(4,824)	0	(4,824)	0	(4,824)
Goodwill, net	$297,692	$0	$297,692	$47,358	$345,050

During the first quarter, the Company performed its annual internal valuation of goodwill and impairment analysis by comparing the fair value of each reporting unit to its carrying value.  Results of the valuations indicate there was no goodwill impairment.

Mortgage Servicing Rights

Under certain circumstances, the Company sells consumer residential mortgage loans in the secondary market and typically retains the right to service the loans sold.  Generally, the Company's residential mortgage loans sold to third parties are sold on a non-recourse basis.  Upon sale, a mortgage servicing right (“MSR”) is established, which represents the then current fair value of future net cash flows expected to be realized for performing the servicing activities.  The Company stratifies these assets based on predominant risk characteristics, namely expected term of the underlying financial instruments, and uses a valuation model that calculates the present value of future cash flows to determine the fair value of servicing rights. MSRs are recorded in other assets at the lower of the initial capitalized amount, net of accumulated amortization or fair value.  Mortgage loans serviced for others are not included in the accompanying consolidated statements of condition.

The following table summarizes the changes in carrying value of MSRs and the associated valuation allowance:

(000's omitted)	2011	2010
Balance at beginning of period	$2,773	$2,551
Additions	239	991
Amortization	(867)	(769)
Carrying value before valuation allowance at end of period	2,145	2,773
Valuation allowance balance at beginning of period	(351)	(80)
Impairment charges	(526)	(351)
Impairment recoveries	480	80
Valuation allowance balance at end of period	(397)	(351)
Net carrying value at end of period	$1,748	$2,422
Fair value of MSRs at end of period	$1,748	$2,422
Principal balance of loans sold during the year	$34,625	$119,018
Principal balance of loans serviced for others	$458,836	$496,269
Custodial escrow balances maintained in connection with loans serviced for others	$5,823	$6,139

The following table summarizes the key economic assumptions used to estimate the value of the MSRs at December 31:

	2011	2010
Weighted-average contractual life (in years)	19.5	20.2
Weighted-average constant prepayment rate (CPR)	24.7%	19.2%
Weighted-average discount rate	3.2%	4.9%

NOTE G:  DEPOSITS

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STOCK-BASED COMPENSATION PLANS (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	May 25, 2011
STOCK-BASED COMPENSATION PLANS [Abstract]
Shares of common stock authorized for stock-based compensation plan (in shares)	4,000,000
Additional shares of common stock authorized for stock-based compensation plan ( in shares)				900,000
Number of Shares Available for Grant	1,741,682
Options, Outstanding [Roll Forward]
Exercisable (in shares)	2,199,737
Weighted-average exercise price of shares [Abstract]
Exercisable (in dollars per share)	$ 21.44
Stock-based compensation expense related to incentive and non-qualified stock options recognized	$ 1.8	$ 2.0	$ 2.3
Income tax benefit recognized	0.8	0.9	0.8
Options outstanding [Abstract]
Shares (in shares)	2,947,215
Weighted-average Exercise Price on options outstanding (in dollars per share)	$ 21.43
Weighted-average Remaining Life (years)	5.42
Options exercisable (in shares)	2,199,737
Weighted-average Exercise Price on options outstanding and exercisable (in dollars per share)	$ 21.44
Weighted-average remaining contractual term of outstanding stock options (in years)	5.4
Weighted-average remaining contractual term of outstanding and exercisable stock options (in years)	4.6
Aggregate intrinsic value of outstanding stock options	18.8
Aggregate intrinsic value of outstanding and exercisable stock options	14.0
Fair Value Assumptions and Methodology [Abstract]
Fair Value Assumptions, Method Used	Black-Scholes model	Black-Scholes model	Black-Scholes model
Weighted-average Fair Value of Options Granted (in dollars per share)	$ 6.69	$ 5.56	$ 4.66
Assumptions [Abstract]
Weighted-average expected life (in years)	7.72	7.68	7.77
Future dividend yield (in hundredths)	3.90%	3.00%	3.00%
Share price volatility (in hundredths)	32.12%	32.03%	30.66%
Weighted-average risk-free interest rate (in hundredths)	3.34%	3.66%	2.86%
Unrecognized stock-based compensation expense	2.8
Period for recognition of unrecognized compensation cost (in years)	5
Total fair value of shares vested	1.8	3.3	1.7
Proceeds from stock option exercises	5.3	5.9
Windfall tax benefits from stock option exercises	0.5	0.4
Shares issued in connection with stock option exercise (in shares)	274,330	337,652
Total intrinsic value of options exercised	2.3	3.1	0.6
$0.00 - $18.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower range limit (in dollars per share)	$ 0.00
Exercise price range, upper range limit (in dollars per share)	$ 18.00
Options outstanding [Abstract]
Shares (in shares)	428,377
Weighted-average Exercise Price on options outstanding (in dollars per share)	$ 16.84
Weighted-average Remaining Life (years)	4.20
Options exercisable (in shares)	428,377
Weighted-average Exercise Price on options outstanding and exercisable (in dollars per share)	$ 16.84
$18.001 - $23.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower range limit (in dollars per share)	$ 18.001
Exercise price range, upper range limit (in dollars per share)	$ 23.00
Options outstanding [Abstract]
Shares (in shares)	1,272,667
Weighted-average Exercise Price on options outstanding (in dollars per share)	$ 19.64
Weighted-average Remaining Life (years)	6.48
Options exercisable (in shares)	741,585
Weighted-average Exercise Price on options outstanding and exercisable (in dollars per share)	$ 20.12
$23.001 - $28.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower range limit (in dollars per share)	$ 23.001
Exercise price range, upper range limit (in dollars per share)	$ 28.00
Options outstanding [Abstract]
Shares (in shares)	1,246,171
Weighted-average Exercise Price on options outstanding (in dollars per share)	$ 24.83
Weighted-average Remaining Life (years)	4.76
Options exercisable (in shares)	1,029,775
Weighted-average Exercise Price on options outstanding and exercisable (in dollars per share)	$ 24.30
Stock Options [Member]
Options, Outstanding [Roll Forward]
Outstanding, Beginning Period (in shares)	2,976,892	3,082,815
Granted (in shares)	274,828	352,365
Exercised (in shares)	(282,930)	(411,507)
Forfeited (in shares)	(21,575)	(46,781)
Outstanding, Ending Period (in shares)	2,947,215	2,976,892
Weighted-average exercise price of shares [Abstract]
Outstanding, Beginning Period (in dollars per share)	$ 20.55	$ 20.22
Granted (in dollars per share)	$ 27.36	$ 19.49
Exercised (in dollars per share)	$ 17.97	$ 17.09
Forfeited (in dollars per share)	$ 20.58	$ 21.27
Outstanding, Ending Period (in dollars per share)	$ 21.43	$ 20.55
Restricted Stock [Member]
Weighted-average exercise price of shares [Abstract]
Stock-based compensation expense related to incentive and non-qualified stock options recognized	$ 2.0	$ 1.6	$ 0.8
Restricted Shares [Roll Forward]
Unvested, beginning balance (in shares)	284,586	174,008
Awards (in shares)	54,958	173,341
Forfeitures (in shares)	(9,061)	(9,284)
Vestings (in shares)	(60,842)	(53,479)
Unvested, ending balance (in shares)	269,641	284,586	174,008
Weighted-average grant date fair value [Abstract]
Unvested, beginning balance (in dollars per share)	$ 18.53	$ 18.90
Awards (in dollars per share)	$ 27.36	$ 18.34
Forfeitures (in dollars per share)	$ 18.91	$ 18.17
Vestings (in dollars per share)	$ 19.40	$ 19.19
Unvested, ending balance (in dollars per share)	$ 20.12	$ 18.53	$ 18.90

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LOANS

12 Months Ended

Dec. 31, 2011

LOANS [Abstract]

LOANS

NOTE D:  LOANS

The segments of the Company's loan portfolio are disaggregated into levels that allow management to monitor risk and performance.  Consumer mortgages consist primarily of fixed rate residential instruments, typically 15 – 30 years in contractual term, secured by first liens on a property.  Business lending is comprised of general purpose commercial and industrial loans including agricultural-related and dealer floor plans, as well as mortgages on commercial property.  Consumer installment – indirect consists primarily of loans originated through selected dealerships and are secured by automobiles, marine and other recreational vehicles.  Home equity products are consumer purpose installment loans or lines of credit most often secured by a first or second lien position on residential real estate with terms of 15 years or less.  Consumer installment – direct are all other loans to consumers such as personal installment loans and lines of credit.  Loans at December 31 are summarized as follows:

(000's omitted)	2011	2010
Consumer mortgage	$1,214,621	$1,057,332
Business lending	1,226,439	1,023,286
Consumer installment - indirect	556,955	494,529
Consumer installment - direct	149,170	146,575
Home equity	323,840	304,641
Gross loans, including deferred origination costs	3,471,025	3,026,363
Allowance for loan losses	(42,213)	(42,510)
Loans, net of allowance for loan losses	$3,428,812	$2,983,853

The Company had approximately $13.7 million and $12.3 million of net deferred loan origination costs as of December 31, 2011 and 2010, respectively.

Certain directors and executive officers of the Company, as well as associates of such persons, are loan customers.  Loans to these individuals were made in the ordinary course of business under normal credit terms and do not have more than a normal risk of collection.  Following is a summary of the aggregate amount of such loans during 2011 and 2010.

(000's omitted)	2011	2010
Balance at beginning of year	$18,765	$28,289
New loans	2,690	3,050
Payments	(9,905)	(12,574)
Balance at end of year	$11,550	$18,765

Credit Quality

Management monitors the credit quality of its loan portfolio on an ongoing basis.  Measurement of delinquency and past due status are based on the contractual terms of each loan.  Past due loans are reviewed on a monthly basis to identify loans for non-accrual status.  The following is an aged analysis of the Company's past due loans, by class as of December 31, 2011:

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

(000's omitted)	30 - 89 days	90+ Days Past Due and  Still Accruing	Nonaccrual	Total Past Due	Current	Total Loans
Consumer mortgage	$16,026	$2,144	$5,755	$23,925	$1,111,795	$1,135,720
Business lending	4,799	389	10,966	16,154	953,745	969,899
Consumer installment - indirect	8,847	32	0	8,879	527,030	535,909
Consumer installment – direct	1,912	95	0	2,007	138,500	140,507
Home equity	2,269	218	864	3,351	290,093	293,444
Total	$33,853	$2,878	$17,585	$54,316	$3,021,163	$3,075,479

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

(000's omitted)	30 - 89 days	90+ Days Past Due and  Still Accruing	Nonaccrual	Total Past Due	Purchased Impaired	Current	Total Loans
Consumer mortgage	$985	$27	$765	$1,777	$0	$77,124	$78,901
Business lending	3,473	10	9,592	13,075	17,428	226,037	256,540
Consumer installment - indirect	737	0	2	739	0	20,307	21,046
Consumer installment – direct	167	0	0	167	0	8,496	8,663
Home equity	465	175	341	981	0	29,415	30,396
Total	$5,827	$212	$10,700	$16,739	$17,428	$361,379	$395,546

The following is an aged analysis of the Company's past due loans by class as of December 31, 2010:

(000's omitted)	30 - 89 days	90+ Days Past Due and Still Accruing	Nonaccrual	Total Past Due	Current	Total Loans
Consumer mortgage	$16,614	$2,308	$4,737	$23,659	$1,033,673	$1,057,332
Business lending	5,965	247	9,715	15,927	1,007,359	1,023,286
Consumer installment – indirect	10,246	131	0	10,377	484,152	494,529
Consumer installment – direct	2,514	96	0	2,610	143,965	146,575
Home equity	3,960	309	926	5,195	299,446	304,641
Total	$39,299	$3,091	$15,378	$57,768	$2,968,595	$3,026,363

The Company uses several credit quality indicators to assess credit risk in an ongoing manner.  The Company's primary credit quality indicator for its business lending portfolio is an internal credit risk rating system that categorizes loans as “pass”, “special mention”, or “classified”.  Credit risk ratings are applied individually to those classes of loans that have significant or unique credit characteristics that benefit from a case-by-case evaluation.  The following are the definitions of the Company's credit quality indicators:

Pass	In general, the condition of the borrower and the performance of the loans are satisfactory or better.
Special mention	In general, the condition of the borrower has deteriorated although the loan performs as agreed.
Classified	In general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected.

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

	December 31, 2011
(000's omitted)	Legacy	Acquired	Total	December 31, 2010
Pass	$732,873	$157,494	$890,367	$753,252
Special mention	118,800	47,890	166,690	159,906
Classified	118,226	33,728	151,954	110,128
Purchased impaired	0	17,428	17,428	0
Total	$969,899	$256,540	$1,226,439	$1,023,286

All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis.  These are typically loans to individuals in the consumer categories and are delineated as either performing or nonperforming.

The following tables detail the balances in all loan categories except for business lending at December 31, 2011:

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

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$1,127,821	$535,877	$140,412	$292,362	$2,096,472
Nonperforming	7,899	32	95	1,082	9,108
Total	$1,135,720	$535,909	$140,507	$293,444	$2,105,580

Acquired loans (includes loans acquired after January 1, 2009

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$78,109	$21,044	$8,663	$29,880	$137,696
Nonperforming	792	2	0	516	1,310
Total	$78,901	$21,046	$8,663	$30,396	$139,006

The following table details the balances in all other loan categories at December 31, 2010:

(000's omitted)	Consumer Mortgage	Consumer Indirect	Consumer Direct	Home Equity	Total
Performing	$1,052,595	$494,529	$146,575	$303,715	$1,997,414
Nonperforming	4,737	0	0	926	5,663
Total	$1,057,332	$494,529	$146,575	$304,641	$2,003,077

All loan classes are collectively evaluated for impairment except business lending, as described in Note A.  A summary of impaired loans, excluding purchased impaired, as of December 31, 2011 and 2010 are summarized as follows:

(000's omitted)	2011	2010
Loans with reserve	$4,118	$1,465
Loans without reserve	2,308	3,846
Carrying balance	6,426	5,311
Contractual balance	8,527	7,042
Specifically allocated allowance	895	762
Average impaired loans	5,652	9,752
Interest income recognized	314	263
Troubled debt restructured loans	0	0

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

Balance at December 31, 2010	$0
Wilber acquisition	2,509
Accretion income recognized, to-date	(844)
Net reclassification from nonaccretable to accretable	945
Balance at December 31, 2011	$2,610

Allowance for Loan Losses

The allowance for loan losses is general in nature and is available to absorb losses from any loan type despite the analysis below.  The following presents by class the activity in the allowance for loan losses:

	Consumer	Business	Home	Consumer	Consumer		Acquired
(000's omitted)	Mortgage	Lending	Equity	Indirect	Direct	Unallocated	Impaired	Total
Balance at December 31, 2009	$1,127	$23,577	$374	$10,004	$3,660	$3,168	$0	$41,910
Charge-offs	(583)	(3,950)	(181)	(4,279)	(1,719)	0	0	(10,712)
Recoveries	71	730	7	2,569	730	0	0	4,107
Provision	1,836	1,969	489	1,628	1,306	(23)	0	7,205
Balance at December 31, 2010	2,451	22,326	689	9,922	3,977	3,145	0	42,510
Charge-offs	(748)	(2,964)	(265)	(4,464)	(1,273)	0	0	(9,714)
Recoveries	30	692	85	3,200	674	0	0	4,681
Provision	2,918	520	621	302	(88)	77	386	4,736
Balance at December 31, 2011	$4,651	$20,574	$1,130	$8,960	$3,290	$3,222	$386	$42,213

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PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2011

PREMISES AND EQUIPMENT [Abstract]

PREMISES AND EQUIPMENT

NOTE E:  PREMISES AND EQUIPMENT

Premises and equipment consist of the following at December 31:

(000's omitted)	2011	2010
Land and land improvements	$15,069	$13,300
Bank premises	86,318	76,980
Equipment and construction in progress	75,074	71,863
Premises and equipment, gross	176,461	162,143
Accumulated depreciation	(90,505)	(80,582)
Premises and equipment, net	$85,956	$81,561

XML

DEPOSITS

12 Months Ended

Dec. 31, 2011

DEPOSITS [Abstract]

DEPOSITS

NOTE G:  DEPOSITS

Deposits consist of the following at December 31:

(000's omitted)	2011	2010
Noninterest checking	$894,464	$741,166
Interest checking	918,716	721,391
Savings	660,981	546,649
Money market	1,196,835	1,003,973
Time	1,124,249	920,866
Total deposits	$4,795,245	$3,934,045

At December 31, 2011 and 2010, time certificates of deposit in denominations of $100,000 and greater totaled $288.4 million and $187.6 million, respectively.  The approximate maturities of these time deposits at December 31, 2011 are as follows:

(000's omitted)	Amount
2012	$193,223
2013	44,992
2014	26,746
2015	9,610
2016	10,648
Thereafter	3,167
Total	$288,386

XML

REGULATORY MATTERS (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Total core capital to risk-weighted assets [Abstract]
Minimum total core capital to risk-weighted assets for capital adequacy (in hundredths)	8.00%
Minimum Tier I capital to risk-weighted assets for capital adequacy (in hundredths)	4.00%
Minimum Tier I capital to average assets for capital adequacy (in hundredths)	4.00%
Minimum total core capital to risk-weighted assets to be well capitalized (in hundredths)	10.00%
Minimum Tier I capital to risk-weighted assets to be well capitalized (in hundredths)	6.00%
Minimum Tier I capital to average assets to be well capitalized (in hundredths)	5.00%
Community Bank System, Inc [Member]
Tier 1 capital to average assets [Abstract]
Tier 1 Capital	$ 508,250	$ 424,408
Tier 1 capital to average assets (in hundredths)	8.38%	8.23%
Minimum required amount	242,559	206,206
Tier 1 capital to risk-weighted assets [Abstract]
Tier 1 Capital	508,250	424,408
Tier 1 capital to risk-weighted assets (in hundredths)	14.31%	13.49%
Minimum required amount	142,074	125,840
Total core capital to risk-weighted assets [Abstract]
Core Capital	550,763	463,777
Total core capital to risk-weighted assets (in hundredths)	15.51%	14.74%
Minimum required amount	284,148	251,680
Community Bank, N.A. [Member]
Tier 1 capital to average assets [Abstract]
Tier 1 Capital	459,680	380,174
Tier 1 capital to average assets (in hundredths)	7.60%	7.40%
Minimum required amount	241,995	205,622
Tier 1 capital to risk-weighted assets [Abstract]
Tier 1 Capital	502,193	380,174
Tier 1 capital to risk-weighted assets (in hundredths)	12.99%	12.13%
Minimum required amount	141,529	125,404
Total core capital to risk-weighted assets [Abstract]
Core Capital	502,193	419,408
Total core capital to risk-weighted assets (in hundredths)	14.19%	13.38%
Minimum required amount	$ 283,058	$ 250,809

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FAIR VALUE (Details) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 Carrying (Reported) Amount, Fair Value Disclosure [Member]	Dec. 31, 2010 Carrying (Reported) Amount, Fair Value Disclosure [Member]	Dec. 31, 2011 Portion at Fair Value, Fair Value Disclosure [Member]	Dec. 31, 2010 Portion at Fair Value, Fair Value Disclosure [Member]	Dec. 31, 2011 Pooled Trust Preferred Securities [Member]	Dec. 31, 2010 Pooled Trust Preferred Securities [Member]	Dec. 31, 2011 Real Estate Loan Origination and Sale Commitments [Member]	Dec. 31, 2010 Real Estate Loan Origination and Sale Commitments [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2010 Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2011 Fair Value, Measurements, Recurring [Member]	Dec. 31, 2010 Fair Value, Measurements, Recurring [Member]	Dec. 31, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2010 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2010 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2011 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2010 Fair Value, Measurements, Recurring [Member] Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2011 Fair Value, Measurements, Nonrecurring [Member]	Dec. 31, 2010 Fair Value, Measurements, Nonrecurring [Member]	Dec. 31, 2011 Fair Value, Measurements, Nonrecurring [Member] Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2010 Fair Value, Measurements, Nonrecurring [Member] Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2011 Fair Value, Measurements, Nonrecurring [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2010 Fair Value, Measurements, Nonrecurring [Member] Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2011 Fair Value, Measurements, Nonrecurring [Member] Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2010 Fair Value, Measurements, Nonrecurring [Member] Fair Value, Inputs, Level 3 [Member]
Available-for-sale investment securities:
U.S. Treasury and agency securities															$ 520,548,000	$ 304,057,000	$ 311,958,000	$ 1,026,000	$ 208,590,000	$ 303,031,000	$ 0	$ 0
Obligations of state and political subdivisions															573,012,000	522,218,000	0	0	573,012,000	522,218,000	0	0
Government agency mortgage-backed securities															331,379,000	179,716,000	0	0	331,379,000	179,716,000	0	0
Corporate debt securities															22,855,000	27,157,000	0	0	22,855,000	27,157,000	0	0
Government agency collateralized mortgage obligations															46,943,000	10,395,000	0	0	46,943,000	10,395,000	0	0
Pooled trust preferred securities															43,846,000	41,993,000	0	0	0	0	43,846,000	41,993,000
Marketable equity securities															390,000	427,000	390,000	427,000	0	0	0	0
Total available-for-sale investment securities															1,538,973,000	1,085,963,000	312,348,000	1,453,000	1,182,779,000	1,042,517,000	43,846,000	41,993,000
Forward sales contracts															0	322,000	0	0	0	322,000	0	0
Commitments to originate real estate loans for sale															0	58,000	0	0	0	0	0	58,000
Mortgage loans held for sale															532,000	3,952,000	0	0	532,000	3,952,000	0	0
Interest rate swap															0	(3,232,000)	0	0	0	(3,232,000)	0	0
Total															1,539,505,000	1,087,063,000	312,348,000	1,453,000	1,183,311,000	1,043,559,000	43,846,000	42,051,000
Unpaid principal value of mortgage loans held for sale			532,000
Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Impaired loans																							4,118,000	703,000	0	0	0	0	4,118,000	703,000
Other real estate owned																							2,682,000	2,011,000	0	0	0	0	2,682,000	2,011,000
Mortgage servicing rights																							1,747,000	2,422,000	0	0	0	0	1,747,000	2,422,000
Total																							8,547,000	5,136,000	0	0	0	0	8,547,000	5,136,000
Goodwill impairment of Nottingham Advisors Wealth Management Business	3,079,000	1,745,000
Goodwill carrying amount for Nottingham Advisors Wealth Management Business				2,500,000
Level 3 Assets Measured at Fair Value on a Recurring Basis [Abstract]
Beginning balance									41,993,000	44,014,000	58,000	31,000	42,051,000	44,045,000
Total gains (losses) included in earnings									94,000	99,000	(258,000)	(1,421,000)	(164,000)	(1,322,000)
Total losses included in other comprehensive income									3,248,000	(527,000)	0	0	3,248,000	(527,000)
Principal reductions									(1,489,000)	(1,593,000)	0	0	(1,489,000)	(1,593,000)
Commitments to originate real estate loans held for sale, net									0	0	200,000	1,448,000	200,000	1,448,000
Ending balance									43,846,000	41,993,000	0	58,000	43,846,000	42,051,000
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net loans					3,471,025,000	3,026,363,000	3,491,729,000	3,039,331,000
Deposits					4,795,245,000	3,934,045,000	4,810,856,000	3,944,261,000
Borrowings					728,281,000	728,460,000	828,018,000	808,902,000
Subordinated debt held by unconsolidated subsidiary trusts					$ 102,048,000	$ 102,024,000	$ 73,211,000	$ 82,490,000

XML

LEASES (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
LEASES [Abstract]
Rental expense	$ 4,200,000	$ 3,900,000	$ 4,000,000
Operating Leases, Future Minimum Payments Due [Abstract]
2012	4,650,000
2013	4,164,000
2014	3,046,000
2015	2,078,000
2016	1,814,000
Thereafter	5,740,000
Total	$ 21,492,000

XML

PREMISES AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2011

PREMISES AND EQUIPMENT [Abstract]

Premises and equipment

Premises and equipment consist of the following at December 31:

(000's omitted)	2011	2010
Land and land improvements	$15,069	$13,300
Bank premises	86,318	76,980
Equipment and construction in progress	75,074	71,863
Premises and equipment, gross	176,461	162,143
Accumulated depreciation	(90,505)	(80,582)
Premises and equipment, net	$85,956	$81,561

XML

INVESTMENT SECURITIES (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Held-to-maturity portfolio [Abstract]
Amortized cost	$ 553,495,000	$ 602,908,000
Estimated fair value	617,835,000	625,789,000
Available-for-sale portfolio [Abstract]
Amortized cost	1,538,973,000	1,085,963,000
Securities Owned And Other Investments Not Readily Marketable [Abstract]
Other investment securities, cost	58,902,000	53,453,000
Total investment securities, amortized cost	2,151,370,000	1,742,324,000
Total investment securities, fair value	2,215,710,000	1,765,205,000
Total Securities, Unrealized Loss Position, Number of Positions [Abstract]
Total securities in unrealized loss positions for less than 12 months, number of positions	23	232
Total securities in unrealized loss positions for 12 months or longer, number of positions	12	10
Total securities in unrealized loss positions, number of positions	35	242
Total Securities, Unrealized Loss Position, Fair Value [Abstract]
Total Securities, Unrealized Loss Position, Less than 12 Months, Fair Value	9,397,000	270,784,000
Total Securities, Unrealized Loss Position, 12 Months or Longer, Fair Value	49,069,000	46,053,000
Total Securities, Unrealized Loss Position, Fair Value	58,466,000	316,837,000
Total Securities, Unrealized Loss Position, Gross unrealized losses [Abstract]
Total Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses	190,000	7,543,000
Total Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses	24,509,000	28,010,000
Total Securities, Unrealized Loss Position, Gross unrealized losses	24,699,000	35,553,000
Pooled trust preferred, class A-1 securities, par value	69,600,000
Pooled trust preferred, class A-1 securities, unrealized losses	24,300,000
Percentage minimum for underlying collateral to be in deferral or default concurrently before non-receipt of contractual cash flows (in hundredths)	35.00%
Percentage maximum for underlying collateral to be in deferral or default concurrently before non-receipt of contractual cash flows (in hundredths)	38.00%
Cash flow information on investment securities [Abstract]
Gross gains on sales of investment securities	349,000	0	7,000
Gross losses on sales of investment securities	319,000	0	0
Proceeds from the maturities of government agency mortgage-backed securities and government agency CMO's	97,224,000	93,171,000	101,176,000
Purchases of government agency mortgage-backed securities and government agency CMO's	253,378,000	9,132,000	214,275,000
Investment securities pledged to collateralize certain deposits and borrowings	1,015,000,000	848,600,000
Held-to-maturity Securities [Member]
Held-to-maturity portfolio [Abstract]
Amortized cost	553,495,000	602,908,000
Gross unrealized gains	64,340,000	24,601,000
Gross unrealized losses	0	1,720,000
Estimated fair value	617,835,000	625,789,000
Held-to-maturity securities in unrealized loss positions, number of positions [Abstract]
Held-to-maturity securities in unrealized loss positions for less than 12 months, number of positions		50
Held-to-maturity securities in unrealized loss positions 12 months or more, number of positions		0
Held-to-maturity securities in unrealized loss positions, number of positions		50
Held-to-maturity securities, Debt maturities, Fair value [Abstract]
Held-to-maturity Securities, Unrealized Loss Position, Less than 12 months, Fair Value		58,818,000
Held-to-maturity Securities, Unrealized Loss Position, 12 months or longer, Fair Value		0
Held-to-maturity Securities, Unrealized Loss Position, Fair Value		58,818,000
Held-to-maturity securities, Debt maturities, Gross unrealized losses [Abstract]
Held-to-maturity Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses		1,720,000
Held-to-maturity Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses		0
Held-to-maturity Securities, Unrealized Loss Position, Gross unrealized losses		1,720,000
Held-to-maturity, Amortized Cost [Abstract]
Held -to-maturity, Amortized Cost, Due in one year or less	11,074,000
Held -to-maturity, Amortized Cost, Due in one to five years	152,584,000
Held -to-maturity, Amortized Cost, Due in five through ten years	285,481,000
Held -to-maturity, Amortized Cost, Due after ten years	68,780,000
Held-to-maturity Securities, Amortized Cost, Subtotal	517,919,000
Held-to-maturity Collateralized Mortgage Obligations, Amortized Cost, without single maturity date	0
Held-to-maturity Mortgage Backed Securities, Amortized Cost, without single maturity date	35,576,000
Held-to-maturity, Amortized Cost	553,495,000
Held-to-maturity, Fair value [Abstract]
Held-to-maturity, Fair value, Due in one year or less	11,183,000
Held-to-maturity, Fair value, Due in one to five years	169,672,000
Held-to-maturity, Fair value, Due in five through ten years	321,967,000
Held-to-maturity, Fair value, Due after ten years	76,985,000
Held-to-maturity Securities, Fair Value, Subtotal	579,807,000
Held-to-maturity Collateralized Mortgage Obligations, Fair Value, without single maturity date	0
Held-to-maturity Mortgage Backed Securities, Amortized Cost, without single maturity date	38,028,000
Held-to-maturity, Fair value	617,835,000
Held-to-maturity Securities [Member] | US Treasury and Agency Securities [Member]
Held-to-maturity portfolio [Abstract]
Amortized cost	448,260,000	478,100,000
Gross unrealized gains	56,800,000	21,571,000
Gross unrealized losses	0	29,000
Estimated fair value	505,060,000	499,642,000
Held-to-maturity securities in unrealized loss positions, number of positions [Abstract]
Held-to-maturity securities in unrealized loss positions for less than 12 months, number of positions		2
Held-to-maturity securities in unrealized loss positions 12 months or more, number of positions		0
Held-to-maturity securities in unrealized loss positions, number of positions		2
Held-to-maturity securities, Debt maturities, Fair value [Abstract]
Held-to-maturity Securities, Unrealized Loss Position, Less than 12 months, Fair Value		14,967,000
Held-to-maturity Securities, Unrealized Loss Position, 12 months or longer, Fair Value		0
Held-to-maturity Securities, Unrealized Loss Position, Fair Value		14,967,000
Held-to-maturity securities, Debt maturities, Gross unrealized losses [Abstract]
Held-to-maturity Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses		29,000
Held-to-maturity Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses		0
Held-to-maturity Securities, Unrealized Loss Position, Gross unrealized losses		29,000
Held-to-maturity Securities [Member] | Government Agency Mortgage-Backed Securities [Member]
Held-to-maturity portfolio [Abstract]
Amortized cost	35,576,000	56,891,000
Gross unrealized gains	2,452,000	2,753,000
Gross unrealized losses	0	0
Estimated fair value	38,028,000	59,644,000
Held-to-maturity Securities [Member] | Obligations of State and Political Subdivisions [Member]
Held-to-maturity portfolio [Abstract]
Amortized cost	69,623,000	67,864,000
Gross unrealized gains	5,088,000	277,000
Gross unrealized losses	0	1,691,000
Estimated fair value	74,711,000	66,450,000
Held-to-maturity securities in unrealized loss positions, number of positions [Abstract]
Held-to-maturity securities in unrealized loss positions for less than 12 months, number of positions		48
Held-to-maturity securities in unrealized loss positions 12 months or more, number of positions		0
Held-to-maturity securities in unrealized loss positions, number of positions		48
Held-to-maturity securities, Debt maturities, Fair value [Abstract]
Held-to-maturity Securities, Unrealized Loss Position, Less than 12 months, Fair Value		43,851,000
Held-to-maturity Securities, Unrealized Loss Position, 12 months or longer, Fair Value		0
Held-to-maturity Securities, Unrealized Loss Position, Fair Value		43,851,000
Held-to-maturity securities, Debt maturities, Gross unrealized losses [Abstract]
Held-to-maturity Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses		1,691,000
Held-to-maturity Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses		0
Held-to-maturity Securities, Unrealized Loss Position, Gross unrealized losses		1,691,000
Held-to-maturity Securities [Member] | Other Debt Obligations [Member]
Held-to-maturity portfolio [Abstract]
Amortized cost	36,000	53,000
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Estimated fair value	36,000	53,000
Available for Sale Securities Subtotal [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	1,453,461,000	1,076,030,000
Gross unrealized gains	110,211,000	43,766,000
Gross unrealized losses	24,699,000	33,833,000
Estimated fair value	1,538,973,000	1,085,963,000
Available-for-sale Securities [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	1,538,973,000	1,085,963,000
Gross unrealized gains	110,211,000	43,766,000
Gross unrealized losses	24,699,000	33,833,000
Net unrealized gain on available-for-sale portfolio	85,512,000	9,933,000
Estimated fair value	1,538,973,000	1,085,963,000
Available-for-sale securities in unrealized loss positions, number of positions [Abstract]
Available-for-sale securities in unrealized loss positions for less than 12 months, number of positions	23	182
Available-for-sale securities in unrealized loss positions for more than 12 months, number of positions	12	10
Total available-for-sale securities in unrealized loss positions, number of positions	35	192
Available-for-sale securities, Debt maturities, Fair value [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Fair Value	9,397,000	211,966,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Fair Value	49,069,000	46,053,000
Available-for-sale Securities, Unrealized Loss Position, Fair Value	58,466,000	258,019,000
Available-for-sale securities, Debt maturities, Gross unrealized losses [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses	190,000	5,823,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses	24,509,000	28,010,000
Available-for-sale Securities, Unrealized Loss Position, Gross unrealized losses	24,699,000	33,833,000
Available-for-sale securities, Amortized Cost [Abstract]
Available-for-sale securities, Amortized Cost, Due in one year or less	30,838,000
Available-for-sale securities, Amortized Cost, Due in one to five years	211,594,000
Available-for-sale securities, Amortized Cost, Due in five through ten years	413,159,000
Available-for-sale securities, Amortized Cost, Due after ten years	441,468,000
Available-for-sale Securities, Amortized Cost, with a single maturity date, Subtotal	1,097,059,000
Available-for-sale government agency collateralized mortgage obligations, amortized cost, without a single maturity date	45,481,000
Available-for-sale government agency mortgage-backed securities, amortized cost, without a single maturity date	310,541,000
Available-for-sale securities, Amortized Cost	1,453,081,000
Available-for-sale securities, Fair value [Abstract]
Available-for-sale securities, Fair value, Due in one year or less	31,243,000
Available-for-sale securities, Fair value, Due in one to five years	224,297,000
Available-for-sale securities, Fair value, Due in five through ten years	449,799,000
Available-for-sale securities, Fair value, Due after ten years	454,922,000
Available-for-sale Securities, Fair Value, Subtotal	1,160,261,000
Available-for-sale government agency collateralized mortgage obligations, fair value, without single maturity date	46,943,000
Available-for-sale government agency mortgage-backed securities, fair value, without single maturity date	331,379,000
Available-for-sale securities, Fair value	1,538,583,000
Available-for-sale Securities [Member] | US Treasury and Agency Securities [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	463,922,000	281,826,000
Gross unrealized gains	56,626,000	22,231,000
Gross unrealized losses	0	0
Estimated fair value	520,548,000	304,057,000
Available-for-sale Securities [Member] | Government Agency Mortgage-Backed Securities [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	310,541,000	170,673,000
Gross unrealized gains	20,840,000	9,159,000
Gross unrealized losses	2,000	116,000
Estimated fair value	331,379,000	179,716,000
Available-for-sale securities in unrealized loss positions, number of positions [Abstract]
Available-for-sale securities in unrealized loss positions for less than 12 months, number of positions	3	6
Available-for-sale securities in unrealized loss positions for more than 12 months, number of positions	0	0
Total available-for-sale securities in unrealized loss positions, number of positions	3	6
Available-for-sale securities, Debt maturities, Fair value [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Fair Value	2,415,000	14,690,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Unrealized Loss Position, Fair Value	2,415,000	14,690,000
Available-for-sale securities, Debt maturities, Gross unrealized losses [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses	2,000	116,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses	0	0
Available-for-sale Securities, Unrealized Loss Position, Gross unrealized losses	2,000	116,000
Available-for-sale Securities [Member] | Obligations of State and Political Subdivisions [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	543,527,000	518,216,000
Gross unrealized gains	29,721,000	10,197,000
Gross unrealized losses	236,000	6,195,000
Estimated fair value	573,012,000	522,218,000
Available-for-sale securities in unrealized loss positions, number of positions [Abstract]
Available-for-sale securities in unrealized loss positions for less than 12 months, number of positions	2	174
Available-for-sale securities in unrealized loss positions for more than 12 months, number of positions	6	4
Total available-for-sale securities in unrealized loss positions, number of positions	8	178
Available-for-sale securities, Debt maturities, Fair value [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Fair Value	211,000	197,066,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Fair Value	6,038,000	4,049,000
Available-for-sale Securities, Unrealized Loss Position, Fair Value	6,249,000	201,115,000
Available-for-sale securities, Debt maturities, Gross unrealized losses [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses	0	5,705,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses	236,000	490,000
Available-for-sale Securities, Unrealized Loss Position, Gross unrealized losses	236,000	6,195,000
Available-for-sale Securities [Member] | Pooled Trust Preferred Securities [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	68,115,000	69,508,000
Gross unrealized gains	0	0
Gross unrealized losses	24,269,000	27,515,000
Estimated fair value	43,846,000	41,993,000
Available-for-sale securities in unrealized loss positions, number of positions [Abstract]
Available-for-sale securities in unrealized loss positions for less than 12 months, number of positions	0	0
Available-for-sale securities in unrealized loss positions for more than 12 months, number of positions	3	3
Total available-for-sale securities in unrealized loss positions, number of positions	3	3
Available-for-sale securities, Debt maturities, Fair value [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Fair Value	0	0
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Fair Value	43,019,000	41,993,000
Available-for-sale Securities, Unrealized Loss Position, Fair Value	43,019,000	41,993,000
Available-for-sale securities, Debt maturities, Gross unrealized losses [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses	0	0
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses	24,269,000	27,515,000
Available-for-sale Securities, Unrealized Loss Position, Gross unrealized losses	24,269,000	27,515,000
Available-for-sale Securities [Member] | Corporate Debt Securities [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	21,495,000	25,523,000
Gross unrealized gains	1,360,000	1,634,000
Gross unrealized losses	0	0
Estimated fair value	22,855,000	27,157,000
Available-for-sale Securities [Member] | Government Agency Collateralized Mortgage Obligations [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	45,481,000	9,904,000
Gross unrealized gains	1,572,000	491,000
Gross unrealized losses	110,000	0
Estimated fair value	46,943,000	10,395,000
Available-for-sale securities in unrealized loss positions, number of positions [Abstract]
Available-for-sale securities in unrealized loss positions for less than 12 months, number of positions	17
Available-for-sale securities in unrealized loss positions for more than 12 months, number of positions	0
Total available-for-sale securities in unrealized loss positions, number of positions	17
Available-for-sale securities, Debt maturities, Fair value [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Fair Value	6,648,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Fair Value	0
Available-for-sale Securities, Unrealized Loss Position, Fair Value	6,648,000
Available-for-sale securities, Debt maturities, Gross unrealized losses [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses	110,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses	0
Available-for-sale Securities, Unrealized Loss Position, Gross unrealized losses	110,000
Available-for-sale Securities [Member] | Marketable Equity Security [Member]
Available-for-sale portfolio [Abstract]
Amortized cost	380,000	380,000
Gross unrealized gains	92,000	54,000
Gross unrealized losses	82,000	7,000
Estimated fair value	390,000	427,000
Available-for-sale securities in unrealized loss positions, number of positions [Abstract]
Available-for-sale securities in unrealized loss positions for less than 12 months, number of positions	1	2
Available-for-sale securities in unrealized loss positions for more than 12 months, number of positions	3	3
Total available-for-sale securities in unrealized loss positions, number of positions	4	5
Available-for-sale securities, Debt maturities, Fair value [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Fair Value	123,000	210,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Fair Value	12,000	11,000
Available-for-sale Securities, Unrealized Loss Position, Fair Value	135,000	221,000
Available-for-sale securities, Debt maturities, Gross unrealized losses [Abstract]
Available-for-sale Securities, Unrealized Loss Position, Less than 12 Months, Gross unrealized losses	78,000	2,000
Available-for-sale Securities, Unrealized Loss Position, 12 Months or Longer, Gross unrealized losses	4,000	5,000
Available-for-sale Securities, Unrealized Loss Position, Gross unrealized losses	82,000	7,000
Other Securities [Member]
Securities Owned And Other Investments Not Readily Marketable [Abstract]
Other investment securities, cost	58,902,000	53,453,000
Other investment securities , estimated fair value	58,902,000	53,453,000
Other Securities [Member] | Federal Reserve Bank Stock [Member]
Securities Owned And Other Investments Not Readily Marketable [Abstract]
Other investment securities, cost	15,451,000	12,378,000
Other investment securities , estimated fair value	15,451,000	12,378,000
Other Securities [Member] | Investment in Federal Home Loan Bank Stock [Member]
Securities Owned And Other Investments Not Readily Marketable [Abstract]
Other investment securities, cost	38,343,000	37,301,000
Other investment securities , estimated fair value	38,343,000	37,301,000
Other Securities [Member] | Equity Securities, Other [Member]
Securities Owned And Other Investments Not Readily Marketable [Abstract]
Other investment securities, cost	5,108,000	3,774,000
Other investment securities , estimated fair value	$ 5,108,000	$ 3,774,000

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STOCK-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2011

STOCK-BASED COMPENSATION PLANS [Abstract]

STOCK-BASED COMPENSATION PLANS

NOTE L:  STOCK-BASED COMPENSATION PLANS

The Company has a long-term incentive program for directors, officers and employees.  Under this program, the Company initially authorized 4,000,000 shares of Company common stock for the grant of incentive stock options, nonqualified stock options, restricted stock awards, and retroactive stock appreciation rights.  The long-term incentive program was amended effective May 25, 2011 to authorize an additional 900,000 shares of Company common stock for the grant of incentive stock options, nonqualified stock options, restricted stock awards, and retroactive stock appreciation rights.  As of December 31, 2011, the Company has authorization to grant up to 1,741,682 additional shares of Company common stock for these instruments.  The nonqualified (offset) stock options in its Director's Stock Balance Plan vest and become exercisable immediately and expire one year after the date the director retires or two years in the event of death.  The remaining options have a ten-year term, and vest and become exercisable on a grant-by-grant basis, ranging from immediate vesting to ratably over a five-year period.

Activity in this long-term incentive program is as follows:

	Stock Options
		Weighted-average
		Exercise Price of
	Outstanding	Shares
Outstanding at December 31, 2009	3,082,815	$20.22
Granted	352,365	19.49
Exercised	(411,507)	17.09
Forfeited	(46,781)	21.27
Outstanding at December 31, 2010	2,976,892	20.55
Granted	274,828	27.36
Exercised	(282,930)	17.97
Forfeited	(21,575)	20.58
Outstanding at December 31, 2011	2,947,215	$21.43
Exercisable at December 31, 2011	2,199,737	$21.44

The following table summarizes the information about stock options outstanding under the Company's stock option plan at December 31, 2011:

	Options outstanding			Options exercisable
Range of Exercise Price	Shares	Weighted-average Exercise Price	Weighted- average Remaining Life (years)	Shares	Weighted-average Exercise Price
$0.00 – $18.00	428,377	$16.84	4.20	428,377	$16.84
$18.001 – $23.00	1,272,667	19.64	6.48	741,585	20.12
$23.001 – $28.00	1,246,171	24.83	4.76	1,029,775	24.30
TOTAL	2,947,215	$21.43	5.42	2,199,737	$21.44

The weighted-average remaining contractual term of outstanding and exercisable stock options at December 31, 2011 is 5.4 years and 4.6 years, respectively.  The aggregate intrinsic value of outstanding and exercisable stock options at December 31, 2011 is $18.8 million and $14.0 million, respectively.

The Company recognized stock-based compensation expense related to incentive and non-qualified stock options of $1.8 million, $2.0 million and $2.3 million for the years ended December 31, 2011, 2010 and 2009, respectively.  A related income tax benefit was recognized of $0.8 million, $0.9 million and $0.8 million for the 2011, 2010 and 2009 years, respectively.  Compensation expense related to restricted stock vesting recognized in the income statement for 2011, 2010 and 2009 was approximately $2.0 million, $1.6 million and $0.8 million, respectively.

Management estimated the fair value of options granted using the Black-Scholes option-pricing model.  This model was originally developed to estimate the fair value of exchange-traded equity options, which (unlike employee stock options) have no vesting period or transferability restrictions.  As a result, the Black-Scholes model is not necessarily a precise indicator of the value of an option, but it is commonly used for this purpose.  The Black-Scholes model requires several assumptions, which management developed based on historical trends and current market observations.

	2011	2010	2009
Weighted-average Fair Value of Options Granted	$6.69	$5.56	$4.66
Assumptions:
Weighted-average expected life (in years)	7.72	7.68	7.77
Future dividend yield	3.90%	3.00%	3.00%
Share price volatility	32.12%	32.03%	30.66%
Weighted-average risk-free interest rate	3.34%	3.66%	2.86%

Unrecognized stock-based compensation expense related to non-vested stock options totaled $2.8 million at December 31, 2011, which will be recognized as expense over the next five years.  The weighted-average period over which this unrecognized expense would be recognized is 3.0 years.  The total fair value of shares vested during 2011, 2010, and 2009 were $1.8 million, $3.3 million and $1.7 million, respectively.

During the twelve months ended December 31, 2011 and 2010, proceeds from stock option exercises totaled $5.3 million and $5.9 million, respectively, and the related tax benefits from exercise were approximately $0.5 million and $0.4 million, respectively.   During the twelve months ended December 31, 2011 and 2010, 274,330 and 337,652 shares, respectively, were issued in connection with stock option exercise.  The total intrinsic value of options exercised during 2011, 2010 and 2009 were $2.3 million, $3.1 million and $0.6 million, respectively.

A summary of the status of the Company's unvested restricted stock awards as of December 31, 2011, and changes during the twelve months ended December 31, 2011 and 2010, is presented below:

	Restricted  Shares	Weighted-average  grant date fair value
Unvested at December 31, 2009	174,008	$18.90
Awards	173,341	18.34
Forfeitures	(9,284)	18.17
Vestings	(53,479)	19.19
Unvested at December 31, 2010	284,586	18.53
Awards	54,958	27.36
Forfeitures	(9,061)	18.91
Vestings	(60,842)	19.40
Unvested at December 31, 2011	269,641	$20.12

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PARENT COMPANY STATEMENTS

12 Months Ended

Dec. 31, 2011

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

PARENT COMPANY STATEMENTS

NOTE Q:  PARENT COMPANY STATEMENTS

The condensed balance sheets of the parent company at December 31 are as follows:

(000's omitted)	2011	2010
Assets:
Cash and cash equivalents	$38,853	$35,969
Investment securities	3,572	3,612
Investment in and advances to subsidiaries	838,130	674,516
Other assets	8,145	8,243
Total assets	$888,700	$722,340
Liabilities and shareholders' equity:
Accrued interest and other liabilities	$12,069	$13,058
Borrowings	102,048	102,024
Shareholders' equity	774,583	607,258
Total liabilities and shareholders' equity	$888,700	$722,340

The condensed statements of income of the parent company for the years ended December 31 is as follows:

(000's omitted)	2011	2010	2009
Revenues:
Dividends from subsidiaries	$52,251	$3,500	$36,000
Interest and dividends on investments	87	345	656
Other income	0	2	45
Total revenues	52,338	3,847	36,701
Expenses:
Interest on borrowings	5,815	5,960	6,153
Other expenses	273	14	101
Total expenses	6,088	5,974	6,254
Income (Loss) before tax benefit and equity in undistributed net income of subsidiaries	46,250	(2,127)	30,447
Income tax benefit	2,237	2,131	1,529
Income before equity in undistributed net income of subsidiaries	48,487	4	31,976
Equity in undistributed net income of subsidiaries	24,655	63,316	9,469
Net income	$73,142	$63,320	$41,445

The statements of cash flows of the parent company for the years ended December 31 is as follows:

(000's omitted)	2011	2010	2009
Operating activities:
Net income	$73,142	$63,320	$41,445
Gain on sale of fixed assets and investment securities	0	0	(7)
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed net (income)/loss of subsidiaries	(24,655)	(63,316)	(9,469)
Net change in other assets and other liabilities	(504)	(2,397)	1,190
Net cash provided by (used in) operating activities	47,983	(2,393)	33,159
Investing activities:
Purchase of investment securities	0	(10)	0
Proceeds from sale of investment securities	2	0	26
Repayments from subsidiaries, net	51	1,712	1,656
Capital contributions to subsidiaries	(102,462)	0	0
Net cash (used in)/provided by investing activities	(102,409)	1,702	1,682
Financing activities:
Issuance of common stock	91,714	9,957	4,341
Cash dividends paid	(34,404)	(30,394)	(28,789)
Net cash provided by/(used in) financing activities	57,310	(20,437)	(24,448)
Change in cash and cash equivalents	2,884	(21,128)	10,393
Cash and cash equivalents at beginning of year	35,969	57,097	46,704
Cash and cash equivalents at end of year	$38,853	$35,969	$57,097
Supplemental disclosures of cash flow information:
Cash paid for interest	$5,959	$5,960	$6,283
Supplemental disclosures of noncash financing activities
Dividends declared and unpaid	$9,609	$7,976	$7,211

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) Share data in Millions, unless otherwise specified	1 Months Ended	12 Months Ended
	Jan. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Nature of Operations [Abstract]
Number of bank branches		168
Number of counties in New York where the bank has facilities		35
Number of counties in Pennsylvania where the bank has facilities		5
Impaired and Other Nonaccrual Loans [Abstract]
Number of days past due for loans to be placed on nonaccrual status		90
Threshold amount of individual commercial loans evaluated for impairment		$ 500,000
Intangible assets [Abstract]
Intangible asset useful life (amortization period), minimum (in years)		8
Intangible asset useful life (amortization period), maximum (in years)		20
Premises and Equipment [Abstract]
Other real estate		2,600,000	2,000,000
Advertising [Abstract]
Advertising costs		2,300,000	2,000,000	2,700,000
Subsequent Events [Abstract]
Public stock offering proceeds, gross	57,500,000
Public stock offering shares issued (in shares)	2.13
Public stock offering proceeds, net	$ 54,900,000
Equipment [Member]
Premises and Equipment [Abstract]
Estimated useful life, minimum (in years)		5
Estimated useful life, maximum (in years)		10
Software and Hardware [Member]
Premises and Equipment [Abstract]
Estimated useful life, minimum (in years)		3
Estimated useful life, maximum (in years)		7
Building and Building Improvements [Member]
Premises and Equipment [Abstract]
Estimated useful life, minimum (in years)		10
Estimated useful life, maximum (in years)		40
Land Improvements [Member]
Premises and Equipment [Abstract]
Estimated useful life, maximum (in years)		15

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EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2011

EARNINGS PER SHARE [Abstract]

Reconciliation of basic to diluted earnings per share

The following is a reconciliation of basic to diluted earnings per share for the years ended December 31, 2011, 2010 and 2009.

(000's omitted, except per share data)	2011	2010	2009
Net income	$73,142	$63,320	$41,445
Income attributable to unvested stock-based compensation awards	(553)	(542)	(215)
Income available to common shareholders	$72,589	$62,778	$41,230
Weighted-average common shares outstanding - basic	35,767	32,951	32,673
Basic earnings per share	$2.03	$1.91	$1.26
Net income	$73,142	$63,320	$41,445
Income attributable to unvested stock-based compensation awards	(553)	(542)	(215)
Income available to common shareholders	$72,589	$62,778	$41,230
Weighted-average common shares outstanding	35,767	32,951	32,673
Assumed exercise of stock options	415	318	148
Weighted-average common shares outstanding – diluted	36,182	33,269	32,821
Diluted earnings per share	$2.01	$1.89	$1.26

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Change in accumulated unrealized gain or loss for pension and other postretirement obligations	$ (17,213)	$ 9	$ 12,434
Change in unrealized losses on derivative instruments used in cash flow hedging relationships	3,232	1,861	1,628
Unrealized gains (losses) on securities:
Unrealized holding (losses) gains arising during period	75,609	(2,803)	(7,286)
Reclassification adjustment for gains included in net income	(30)	0	(7)
Other comprehensive gain (loss), before tax	61,598	(933)	6,769
Income tax (expense) benefit related to other comprehensive loss	(23,093)	377	(2,689)
Other comprehensive gain (loss) income, net of tax	38,505	(556)	4,080
Net income	73,142	63,320	41,445
Comprehensive income	111,647	62,764	45,525
Tax Effect Allocated To Each Component Of Comprehensive Income:
Tax effect of unrealized gain (loss) for pension and other postretirement obligations	6,631	(2)	(4,783)
Tax effect of unrealized losses on derivative instruments used in cash flow hedging relationships	(1,252)	(716)	(626)
Tax effect of unrealized gains and losses on available-for-sale securities arising during period	(28,484)	1,095	2,717
Reclassification adjustment for gains included in net income	12	0	3
Tax effect of unrealized gains on available-for-sale securities arising during period	(28,472)	1,095	2,720
Income tax (expense) benefit related to other comprehensive loss	(23,093)	377	(2,689)
Accumulated Other Comprehensive Income By Component:
Unrealized loss for pension and other postretirement obligations	(40,477)	(23,264)	(23,273)
Tax effect	15,603	8,972	8,974
Net unrealized loss for pension and other postretirement obligations	(24,874)	(14,292)	(14,299)
Unrealized losses on derivative instruments used in cash flow hedging relationships	0	(3,232)	(5,093)
Tax effect	0	1,252	1,968
Net unrealized losses on derivative instruments used in cash flow hedging relationships	0	(1,980)	(3,125)
Unrealized gain on available-for-sale securiies	85,512	9,933	12,736
Tax effect	(31,473)	(3,001)	(4,096)
Net unrealized gain on available-for-sale securities	54,039	6,932	8,640
Accumulated other comprehensive income (loss)	$ 29,165	$ (9,340)	$ (8,784)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2011

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE A:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Community Bank System, Inc. (the “Company”) is a single bank holding company which wholly-owns five consolidated subsidiaries: Community Bank, N.A. (the “Bank”), Benefit Plans Administrative Services, Inc. (“BPAS”), CFSI Closeout Corp. (“CFSICC”), First of Jermyn Realty Co. (“FJRC”), and Town & Country Agency LLC (“T&C”).  BPAS owns three subsidiaries, Benefit Plans Administrative Services LLC (“BPA”), Harbridge Consulting Group LLC (“Harbrdge”), and Hand Benefits & Trust, Inc. (“HB&T”), which owns two subsidiaries Hand Securities Inc. (“HSI”), and Flex Corporation (“Flex”).  BPAS provides administration, consulting and actuarial services to sponsors of employee benefit plans.  CFSICC, FJRC and T&C are inactive companies.  The Company also wholly-owns two unconsolidated subsidiary business trusts formed for the purpose of issuing mandatorily-redeemable preferred securities which are considered Tier I capital under regulatory capital adequacy guidelines (see Note P).

The Bank operates 168 full service branches throughout 35 counties of Upstate New York, where it operates as Community Bank, N.A. and five counties of Northeastern Pennsylvania, where it is known as First Liberty Bank & Trust, offering a range of commercial and retail banking services.  The Bank owns the following subsidiaries: Community Investment Services, Inc. (“CISI”), CBNA Treasury Management Corporation (“TMC”), CBNA Preferred Funding Corporation (“PFC”), Nottingham Advisors, Inc. (“Nottingham”), First Liberty Service Corp. (“FLSC”), Brilie Corporation (“Brilie”), CBNA Insurance Agency (“CBNA Insurance”) and Western Catskill Realty, LLC (“WCR”).  CISI provides broker-dealer and investment advisory services.  TMC provides cash management, investment, and treasury services to the Bank.  PFC primarily is an investor in residential real estate loans.  Nottingham provides asset management services to individuals, corporate pension and profit sharing plans, and foundations.  FLSC provides banking-related services to the Pennsylvania branches of the Bank.   Brilie and WCR are inactive companies.  CBNA Insurance is a full service insurance agency offering primarily property and casualty products.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  All inter-company accounts and transactions have been eliminated in consolidation.

Variable Interest Entities (“VIE”) are required to be consolidated by a company if it is determined the company is the primary beneficiary of a VIE.  The primary beneficiary of a VIE is the enterprise that has: (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits of the VIE that could potentially be significant to the VIE.  The Company's wholly-owned subsidiaries, Community Statutory Trust III and Community Capital Trust IV, are VIEs for which the Company is not the primary beneficiary.  Accordingly, the accounts of these entities are not included in the Company's consolidated financial statements.

Critical Accounting Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Critical accounting estimates include the allowance for loan losses, actuarial assumptions associated with the pension, post-retirement and other employee benefit plans, the provision for income taxes, investment valuation and other-than-temporary impairment, the carrying value of goodwill and other intangible assets, and acquired loan valuations.

Risk and Uncertainties

In the normal course of its business, the Company encounters economic and regulatory risks.  There are three main components of economic risk: interest rate risk, credit risk and market risk.  The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different speeds, or on different basis, from its interest-earning assets.  The Company's primary credit risk is the risk of default on the Company's loan portfolio that results from the borrowers' inability or unwillingness to make contractually required payments.  Market risk reflects potential changes in the value of collateral underlying loans, the fair value of investment securities, and loans held for sale.

The Company is subject to regulations of various governmental agencies.  These regulations can and do change significantly from period to period.  The Company also undergoes periodic examinations by the regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required loan loss allowances, and operating restrictions resulting from the regulators' judgments based on information available to them at the time of their examinations.

Revenue Recognition

The Company recognizes income on an accrual basis. CISI recognizes fee income when investment and insurance products are sold to customers.  Nottingham provides asset management services to brokerage firms and clients and recognizes income ratably over the contract period during which service is performed.  Revenue from BPA's administration and recordkeeping services is recognized ratably over the service contract period.  Revenue from consulting and actuarial services is recognized when services are rendered.  CBNA Insurance recognizes commission revenue at the later of the effective date of the insurance policy, or the date on which the policy premium is billed to the customer.  At that date, the earnings process has been completed and the impact of refunds for policy cancellations can be reasonably estimated to establish reserves. The reserve for policy cancellations is based upon historical cancellation experience adjusted for known circumstances. All intercompany revenue and expense among related entities are eliminated in consolidation.

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and highly liquid investments with original maturities of less than ninety days.  The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets' fair values.

Investment Securities

The Company has classified its investments in debt and equity securities as held-to-maturity or available-for-sale.  Held-to-maturity securities are those for which the Company has the positive intent and ability to hold until maturity, and are reported at cost, which is adjusted for amortization of premiums and accretion of discounts.  Securities not classified as held-to-maturity are classified as available-for-sale and are reported at fair value with net unrealized gains and losses reflected as a separate component of shareholders' equity, net of applicable income taxes.  None of the Company's investment securities have been classified as trading securities at December 31, 2011.  Certain equity securities are stated at cost and include restricted stock of the Federal Reserve Bank of New York and Federal Home Loan Bank of New York.

Fair values for investment securities are based upon quoted market prices, where available.  If quoted market prices are not available, fair values are based upon quoted market prices of comparable instruments, or a discounted cash flow model using market estimates of interest rates and volatility.

The Company conducts an assessment of all securities in an unrealized lossposition to determine if other-than-temporary impairment (“OTTI”) exists on a monthly basis. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis.  The OTTI assessment considers the security structure, recent security collateral performance metrics, if applicable, external credit ratings, failure of the issuer to make scheduled interest or principal payments, judgment and expectations of future performance, and relevant independent industry research, analysis and forecasts. The severity of the impairment and the length of time the security has been impaired is also considered in the assessment.  The assessment of whether an OTTI decline exists is performed on each security, regardless of the classification of the security as available-for-sale or held-to-maturity and involves a high degree of subjectivity and judgment that is based on the information available to management at a point in time.

An OTTI loss must be recognized for a debt security in an unrealized loss position if there is intent to sell the security or it is more likely than not the Company will be required to sell the security prior to recovery of its amortized cost basis. In this situation, the amount of loss recognized in income is equal to the difference between the fair value and the amortized cost basis of the security. Even if management does not have the intent and it is not more likely than not that the Company will be required to sell the securities, an evaluation of the expected cash flows to be received is performed to determine if a credit loss has occurred. For debt securities, a critical component of the evaluation for OTTI is the identification of credit-impaired securities, where the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security.  In the event of a credit loss, only the amount of impairment associated with the credit loss would be recognized in income. The portion of the unrealized loss relating to other factors, such as liquidity conditions in the market or changes in market interest rates, is recorded in accumulated other comprehensive loss.

Equity securities are also evaluated to determine whether the unrealized loss is expected to be recoverable based on whether evidence exists to support a realizable value equal to or greater than the amortized cost basis. If it is probable that the amortized cost basis will not be recovered, taking into consideration the estimated recovery period and the ability to hold the equity security until recovery, OTTI is recognized in earnings equal to the difference between the fair value and the amortized cost basis of the security.

The specific identification method is used in determining the realized gains and losses on sales of investment securities and other-than-temporary impairment charges.  Premiums and discounts on securities are amortized and accreted, respectively, on the interest method basis over the period to maturity or estimated life of the related security.  Purchases and sales of securities are recognized on a trade date basis.

Derivative Financial Instruments

The Company has utilized interest rate swap agreements, considered to be cash flow hedges, as part of the management of interest rate risk to modify the repricing characteristics of certain portions of its portfolios of interest-bearing liabilities. These derivative instruments are required to be carried at fair value on the balance sheet.

Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability, with a corresponding offset recorded in other comprehensive income within shareholders' equity, net of income tax effect.  Amounts are reclassified from other comprehensive income to the income statement in the period or periods the hedged transaction affects earnings.  Derivative gains and losses not effective in hedging the expected cash flows of the hedged item are recognized immediately in the income statement.  At the hedge's inception and at least quarterly thereafter, a formal assessment is performed to determine the effectiveness of the cash flow hedge.  If it is determined that a derivative instrument has not been or will not continue to be highly effective as a hedge, hedge accounting is discontinued.
 

Loans

Loans are stated at unpaid principal balances, net of unearned income.  Mortgage loans held for sale are carried at fair value and are included in loans held for sale. Fair values for variable rate loans that reprice frequently are based on carrying values.  Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.  The carrying amount of accrued interest approximates its fair value.

Interest on loans is accrued and credited to operations based upon the principal amount outstanding.  Nonrefundable loan fees and related direct costs are deferred and included in the loan balances where they are amortized over the life of the loan as an adjustment to loan yield using the effective yield method.  Premiums and discounts on purchased loans are amortized using the effective yield method over the life of the loans.

Acquired Loans

Acquired loans are initially recorded at their acquisition date fair values.  The carryover of allowance for loan losses is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date.  Fair values for acquired loans are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate.

Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments.  The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loans. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require the Company to evaluate the need for an allowance for loan losses on these loans. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the non-accretable discount which the Company then reclassifies as an accretable discount that is recognized into interest income over the remaining life of the loans using the interest method.

Acquired loans that met the criteria for non-accrual of interest prior to acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loan to be non-accrual or non-performing and may accrue interest on these loans, including the impact of any accretable discount. For acquired loans that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value and amortized over the life of the asset.  Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses for these loans is similar to originated loans, however, the Company records a provision for loan losses only when the required allowance exceeds any remaining pooled discounts for loans evaluated collectively for impairment.

Impaired and Other Nonaccrual Loans

The Company places a loan on nonaccrual status when the loan becomes ninety days past due (or sooner, if management concludes collection is doubtful), except when, in the opinion of management, it is well-collateralized and in the process of collection.  A loan may be placed on nonaccrual status earlier than ninety days past due if there is deterioration in the financial position of the borrower or if other conditions of the loan so warrant. When a loan is placed on nonaccrual status, uncollected accrued interest is reversed against interest income and the amortization of nonrefundable loan fees and related direct costs is discontinued. Interest income during the period the loan is on nonaccrual status is recorded on a cash basis after recovery of principal is reasonably assured. Nonaccrual loans are returned to accrual status when management determines that the borrower's performance has improved and that both principal and interest are collectible.  This generally requires a sustained period of timely principal and interest payments and a well-documented credit evaluation of the borrower's financial condition.

Commercial loans greater than $0.5 million are evaluated individually for impairment.  A loan is considered impaired, based on current information and events, if it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  The measurement of impaired loans is generally based upon the present value of expected future cash flows or the fair value of the collateral, if the loan is collateral-dependent.

The Company's charge-off policy by loan type is as follows:

·   Business lending loans are generally charged-off to the extent outstanding principal exceeds the fair value of estimated proceeds from collection efforts, including liquidation of collateral.  The charge-off is recognized when the loss becomes reasonably quantifiable.

·   Consumer installment loans are generally charged-off to the extent outstanding principal balance exceeds the fair value of collateral, and are recognized by the end of the month in which the loan becomes 90 days past due.

·   Consumer mortgage and home equity loans are generally charged-off to the extent outstanding principal exceeds the fair value of the property, less estimated costs to sell, and are recognized when the loan becomes 180 days past due.

Allowance for Loan Losses

Management continually evaluates the credit quality of the Company's loan portfolio, and performs a formal review of the adequacy of the allowance for loan losses on a quarterly basis.  The allowance reflects management's best estimate of probable losses inherent in the loan portfolio.  Determination of the allowance is subjective in nature and requires significant estimates.   The Company's allowance methodology consists of two broad components - general and specific loan loss allocations.

The general loan loss allocation is composed of two calculations that are computed on five main loan segments:  business lending, consumer installment - direct, consumer installment - indirect, home equity and consumer mortgage.  The first calculation determines an allowance level based on the latest 36 months of historical net charge-off data for each loan class (commercial loans exclude balances with specific loan loss allocations).  The second calculation is qualitative and takes into consideration eight qualitative environmental factors:  levels and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards, and other changes in lending policies, procedure, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry condition; and effects of changes in credit concentrations.  These two calculations are added together to determine the general loan loss allocation.  The specific loan loss allocation relates to individual commercial loans that are both greater than $0.5 million and in a nonaccruing status with respect to interest.  Specific losses are based on discounted estimated cash flows, including any cash flows resulting from the conversion of collateral or collateral shortfalls.  The allowance levels computed from the specific and general loan loss allocation methods are combined with unallocated allowances, if any, to derive the required allowance for loan losses to be reflected on the Consolidated Statement of Condition. As it has in prior periods, the Company strives to refine and enhance its loss evaluation and estimation processes continually.

Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance.  A provision for loan loss is charged to operations based on management's periodic evaluation of factors previously mentioned.

Intangible Assets

Intangible assets include core deposit intangibles, customer relationship intangibles and goodwill arising from acquisitions. Core deposit intangibles and customer relationship intangibles are amortized on either an accelerated or straight-line basis over periods ranging from 8 to 20 years. The initial and ongoing carrying value of goodwill and other intangible assets is based upon discounted cash flow modeling techniques that require management to make estimates regarding the amount and timing of expected future cash flows.  It also requires use of a discount rate that reflects the current return requirements of the market in relation to present risk-free interest rates, required equity market premiums, and company-specific risk indicators.

The Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment.  The implied fair value of the reporting units' goodwill is compared to its carrying amount and the impairment loss is measured by the excess of the carrying value over fair value.  The fair value of each reporting unit is compared to the carrying amount of that reporting unit in order to determine if impairment is indicated.

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation.  Computer software costs that are capitalized only include external direct costs of obtaining and installing the software.  The Company has not developed any internal use software.  Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.  Useful lives range from five to ten years for equipment; three to seven years for software and hardware; and 10 to 40 years for building and building improvements.  Land improvements are depreciated over 15 years and leasehold improvements are amortized over the shorter of the term of the respective lease plus any optional renewal periods that are reasonably assured or life of the asset. Maintenance and repairs are charged to expense as incurred.

Other Real Estate

Other real estate owned is comprised of properties acquired through foreclosure, or by deed in lieu of foreclosure.  These assets are carried at fair value less estimated costs of disposal.  At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company's recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses.  Any subsequent reduction in value is recognized by a charge to income.  Operating costs associated with the properties are charged to expense as incurred.  At December 31, 2011 and 2010, other real estate, included in other assets, amounted to $2.6 million and $2.0 million, respectively.

Mortgage Servicing Rights

Originated mortgage servicing rights are recorded at their fair value at the time of sale of the underlying loan, and are amortized in proportion to and over the period of estimated net servicing income or loss.  The Company uses a valuation model that calculates the present value of future cash flows to determine the fair value of servicing rights.  In using this valuation method, the Company incorporates assumptions that market participants would use in estimating future net servicing income, which includes estimates of the servicing cost per loan, the discount rate, and prepayment speeds.  The carrying value of the originated mortgage servicing rights is included in other assets and is evaluated quarterly for impairment using these same market assumptions.

Treasury Stock

Repurchases of shares of the Company's common stock are recorded at cost as a reduction of shareholders' equity.  Reissuance of shares of treasury stock is recorded at average cost.

Income Taxes

The Company and its subsidiaries file a consolidated federal income tax return.  Provisions for income taxes are based on taxes currently payable or refundable as well as deferred taxes that are based on temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements.  Deferred tax assets and liabilities are reported in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled.

Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority having full knowledge of all relevant information. A tax position meeting the more-likely-than-not recognition threshold should be measured at the largest amount of benefit for which the likelihood of realization upon ultimate settlement exceeds 50 percent.

Retirement Benefits

The Company provides defined benefit pension benefits to eligible employees and post-retirement health and life insurance benefits to certain eligible retirees.  The Company also provides deferred compensation and supplemental executive retirement plans for selected current and former employees and officers.  Expense under these plans is charged to current operations and consists of several components of net periodic benefit cost based on various actuarial assumptions regarding future experience under the plans, including discount rate, rate of future compensation increases and expected return on plan assets.

Assets Under Management or Administration

Assets held in fiduciary or agency capacities for customers are not included in the accompanying consolidated statements of condition as they are not assets of the Company.  All fees associated with providing asset management services are recorded on an accrual basis of accounting and are included in noninterest income.

Advertising

Advertising costs amounting to approximately $2.3 million, $2.0 million and $2.7 million for the years ending December 31, 2011, 2010 and 2009, respectively, are nondirect response in nature and expensed as incurred.

Earnings Per Share

Effective January 1, 2009, the Company adopted new authoritative accounting guidance under ASC 260, Earnings Per Share, which 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 determined that its unvested restricted stock awards are participating securities.  Accordingly, effective January 1, 2009, earnings per common share is computed using the two-class method prescribed by ASC 260.  All previously reported earnings per share data has been retroactively adjusted to conform to the new computation method, resulting in minimal changes.

Using the two-class method, basic earnings per common share is computed based upon net income available to common shareholders divided by the weighted average number of common shares outstanding during each period, which exclude the outstanding unvested restricted stock.  Diluted earnings per share is computed using the weighted average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of stock options using the treasury stock method.  Stock options where the exercise price is greater than the average market price of common shares were not included in the computation of earnings per diluted share as they would have been anti-dilutive.

Stock-based Compensation

Companies are required to measure and record compensation expense for stock options and other share-based payments on the instruments' fair value on the date of grant.  The Company uses the modified prospective method.  Under this method, expense is recognized for awards that are granted, modified, or settled after December 31, 2005, as well as for unvested awards that were granted prior to January 1, 2006.  Stock-based compensation expense is recognized ratably over the requisite service period for all awards (see Note L).
 

Fair Values of Financial Instruments

The Company determines fair values based on quoted market values where available or on estimates using present values or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.  Certain financial instruments and all nonfinancial instruments are excluded from this disclosure requirement.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.  The fair values of investment securities, loans, deposits, and borrowings have been disclosed in Note R.

Reclassifications

Certain reclassifications have been made to prior years' balances to conform to the current year presentation.

Subsequent Events

On January 19, 2012, the Bank, the wholly-owned banking subsidiary of the Company, entered into an Assignment, Purchase and Assumption Agreement (the “HSBC Branch Agreement”) and a Purchase and Assumption Agreement (the “First Niagara Branch Agreement”) (collectively, the “Agreements”) with First Niagara Bank, N.A. (“First Niagara”). Under the Agreements, the Bank will acquire 19 branches in Central, Northern, and Western New York consisting of three branches purchased directly from First Niagara and 16 branches which are currently owned by HSBC Bank USA, National Association (“HSBC”). First Niagara is assigning its rights to the HSBC branches in connection with its pending acquisition of HSBC's Upstate New York banking franchise. Under the terms of the Agreements, Community Bank will acquire approximately $218 million in loans and $955 million in deposits at a blended deposit premium of 3.22%.  The branch acquisitions are expected to close during the third quarter of 2012 subject to regulatory review and approval and customary closing conditions.

The Company completed a public stock offering in late January 2012.  The offering raised $57.5 million through the issuance of 2.13 million shares.  The net proceeds of the offering were approximately $54.9 million.  The Company intends to use the net proceeds from this offering to support the HSBC and First Niagara branch acquisitions.

New Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive Income (Topic 220) - Presentation of Comprehensive Income.  This guidance eliminates the option to present the components of other comprehensive income as part of the statement of equity and requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The amendments are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011.  On October 21, 2011, the FASB decided to propose a deferral of the new requirement to present reclassifications of other comprehensive income on the face of the income statement.  Companies would still be required to adopt the other requirements contained in the new standard for the presentation of comprehensive income. The guidance requires changes in presentation only and will have no significant impact on the Company's consolidated financial statements.

In May 2011, the FASB and the International Accounting Standards Board both issued Common Fair Value Measurement and Disclosure Requirements in GAAP and International Financial Reporting Standards (IFRS).  This new guidance results in a consistent definition of fair value and common requirements for measurement of and disclosures about fair value between GAAP and IFRS. While many of the amendments to GAAP are not expected to have a significant effect on practice, the new guidance changes some fair value measurement principles and disclosure requirements currently in GAAP. The new guidance goes into effect on January 1, 2012 for the Company and will be applied prospectively. The Company is currently evaluating the effect of the adoption of this guidance on the Company's financial condition, results of operations, and cash flows.

In September 2011, the FASB issued ASU No. 2011-8, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment.  This pronouncement amends its guidance for goodwill impairment testing by allowing entities to first assess qualitative factors in determining whether or not the fair value of a reporting unit exceeds its carrying value. If an entity concludes from this qualitative assessment that it is more likely than not that the fair value of a reporting unit exceeds its carrying value, then performing a two-step impairment test is unnecessary. This standard is effective for fiscal years beginning after December 15, 2011. The adoption of this standard is not expected to have an impact on the Company's consolidated financial statements.

In December 2011, the FASB issued ASU No. 2011-11-Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The standard requires new disclosures about certain financial instruments and derivative instruments that are either offset in the balance sheet (presented on a net basis) or subject to an enforceable master netting arrangement or similar arrangement. The standard requires disclosures that provide both gross and net information in the notes to the financial statements for relevant assets and liabilities. The new requirements do not change the accounting guidance on netting, but rather enhance the disclosures to more clearly show the impact of netting arrangements on a company's financial position. This new accounting guidance will be effective, on a retrospective basis for all comparative periods presented, beginning on January 1, 2013.  The adoption of this standard is not expected to have an impact on the Company's consolidated financial statements.

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LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
LIMITS ON DIVIDENDS AND OTHER REVENUE SOURCES [Abstract]
Criteria for the bank to seek approval of the Office of the Comptroller of the Currency (OCC) for the payments dividends	The Company's ability to pay dividends to its shareholders is largely dependent on the Bank's ability to pay dividends to the Company. In addition to state law requirements and the capital requirements discussed below, the circumstances under which the Bank may pay dividends are limited by federal statutes, regulations, and policies. For example, as a national bank, the Bank must obtain the approval of the Office of the Comptroller of the Currency OCC for payments of dividends if the total of all dividends declared in any calendar year would exceed the total of the Bank's net profits, as defined by applicable regulations, for that year, combined with its retained net profits for the preceding two years.
Undivided profits legally available for the payments of dividends	$ 92
Statutory restrictions on the company's banking subsidiary to transfer funds	Such transfer by the Bank to the Company generally is limited in amount to 10% of the Bank's capital and surplus, or 20% in the aggregate. Furthermore, such loans and extensions of credit are required to be collateralized in specific amounts.
Percentage of Bank's capital and surplus that can be transferred to Company, maximum (in hundredths)	10.00%
Aggregate percentage of Bank's capital and surplus that can be transferred to Company, maximum (in hundredths)	20.00%

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FAIR VALUE

12 Months Ended

Dec. 31, 2011

FAIR VALUE [Abstract]

FAIR VALUE

NOTE R:  FAIR VALUE

Accounting standards allow entities an irrevocable option to measure certain financial assets and financial liabilities at fair value.  Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings.  The Company has elected to value mortgage loans held for sale at fair value in order to more closely match the gains and losses associated with loans held for sale with the gains and losses on forward sales contracts.  Accordingly the impact on the valuation will be recognized in the Company's consolidated statement of income.  All mortgage loans held for sale are current and in performing status.

Accounting standards establish a framework for measuring fair value and require disclosures about such fair value instruments. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price).  Inputs used to measure fair value are classified into the following hierarchy:

·	Level 1 – Quoted prices in active markets for identical assets or liabilities.
·	Level 2 – Quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted
	prices that are observable for the asset or liability.
·	Level 3 – Significant valuation assumptions not readily observable in a market.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  The following tables set forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis.  There were no transfers between Level 1 and Level 2 for any of the periods presented.

	December 31, 2011
(000's omitted)	Level 1	Level 2	Level 3	Total Fair Value
Available-for-sale investment securities:
Obligations of state and political subdivisions	$0	$573,012	$0	$573,012
U.S. Treasury and agency securities	311,958	208,590	0	520,548
Government agency mortgage-backed securities	0	331,379	0	331,379
Pooled trust preferred securities	0	0	43,846	43,846
Government agency collateralized mortgage obligations	0	46,943	0	46,943
Corporate debt securities	0	22,855	0	22,855
Marketable equity securities	390	0	0	390
Total available-for-sale investment securities	312,348	1,182,779	43,846	1,538,973
Mortgage loans held for sale	0	532	0	532
Total	$312,348	$1,183,311	$43,846	$1,539,505

	December 31, 2010
(000's omitted)	Level 1	Level 2	Level 3	Total Fair Value
Available-for-sale investment securities:
Obligations of state and political subdivisions	$0	$522,218	$0	$522,218
U.S. Treasury and agency securities	1,026	303,031	0	304,057
Government agency mortgage-backed securities	0	179,716	0	179,716
Pooled trust preferred securities	0	0	41,993	41,993
Government agency collateralized mortgage obligations	0	10,395	0	10,395
Corporate debt securities	0	27,157	0	27,157
Marketable equity securities	427	0	0	427
Total available-for-sale investment securities	1,453	1,042,517	41,993	1,085,963
Forward sales contracts	0	322	0	322
Commitments to originate real estate loans for sale	0	0	58	58
Mortgage loans held for sale	0	3,952	0	3,952
Interest rate swap	0	(3,232)	0	(3,232)
Total	$1,453	$1,043,559	$42,051	$1,087,063

The valuation techniques used to measure fair value for the items in the table above are as follows:

·   Available for sale investment securities – The fair value of available-for-sale investment securities is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using quoted market prices for similar securities or model-based valuation techniques.  Level 1 securities include U.S. Treasury obligations and marketable equity securities that are traded by dealers or brokers in active over-the-counter markets.  Level 2 securities include U.S. agency securities, mortgage-backed securities issued by government-sponsored entities, municipal securities and corporate debt securities that are valued by reference to prices for similar securities or through model-based techniques in which all significant inputs, such as dealer quotes, reported trades, trade execution data, LIBOR swap yield curve, market prepayment speeds, credit information, market spreads, and security's terms and conditions, are observable.  Securities classified as Level 3 include pooled trust preferred securities in less liquid markets.  The value of these instruments is determined using multiple pricing models or similar techniques as well as significant unobservable inputs such as judgment or estimation by the Company in the weighting of the models.

·   Mortgage loans held for sale – Mortgage loans held for sale are carried at fair value, which is determined using quoted secondary-market prices of loans with similar characteristics and, as such, have been classified as a Level 2 valuation.  The unpaid principal value of mortgage loans held for sale at December 31, 2011 is approximately $532,000, which approximated fair value.

·   Forward sales contracts – The Company enters into forward sales contracts to sell certain residential real estate loans.  Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value in the other asset or other liability section of the consolidated balance sheet.  The fair value of these forward sales contracts is primarily measured by obtaining pricing from certain government-sponsored entities and reflects the underlying price the entity would pay the Company for an immediate sale on these mortgages.  These instruments are classified as Level 2 in the fair value hierarchy.

·   Commitments to originate real estate loans for sale – The Company enters into various commitments to originate residential real estate loans for sale.  Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value in the other asset or other liability section of the consolidated balance sheet.  The estimated fair value of these commitments is determined using quoted secondary market prices obtained from certain government-sponsored entities.  Additionally, accounting guidance requires the expected net future cash flows related to the associated servicing of the loan to be included in the fair value measurement of the derivative.  The expected net future cash flows are based on a valuation model that calculates the present value of estimated net servicing income.  The valuation model incorporates assumptions that market participants would use in estimating future net servicing income.  Such assumptions include estimates of the cost of servicing loans, appropriate discount rate and prepayment speeds.  The determination of expected net cash flows is considered a significant unobservable input contributing to the Level 3 classification of commitments to originate real estate loans for sale.

·   Interest rate swap – The Company has utilized interest rate swap agreements to modify the repricing characteristics of certain of its interest-bearing liabilities.  The fair value of these interest rate swaps traded in over-the-counter markets where quoted market prices are not readily available, are measured using models for which the significant assumptions such as yield curves and option volatilities are market observable and, therefore, classified as Level 2 in the fair value hierarchy.

 The changes in Level 3 assets measured at fair value on a recurring basis are summarized in the following tables:

	Year Ended December 31,
	2011			2010
	Pooled trust	Commitments to		Pooled trust	Commitments to
	preferred	originate real estate		preferred	originate real estate
(000's omitted)	securities	loans for sale	Total	securities	loans for sale	Total
Beginning balance	$41,993	$58	$42,051	$44,014	$31	$44,045
Total gains/(losses) included in earnings (1)	94	(258)	(164)	99	(1,421)	(1,322)
Total gains/(losses) included in other
comprehensive income	3,248	0	3,248	(527)	0	(527)
Principal reductions	(1,489)	0	(1,489)	(1,593)	0	(1,593)
Commitments to originate real estate loans
held for sale, net	0	200	200	0	1,448	1,448
Ending balance	$43,846	$0	$43,846	$41,993	$58	$42,051
(1) Amounts included in earnings associated with the pooled trust preferred securities relate to accretion of related discount

Assets and liabilities measured on a non-recurring basis:

	December 31, 2011				December 31, 2010
(000's omitted)	Level 1	Level 2	Level 3	Total Fair Value	Level 1	Level 2	Level 3	Total Fair Value
Impaired loans	$0	$0	$4,118	$4,118	$0	$0	$703	$703
Other real estate owned	0	0	2,682	2,682	0	0	2,011	2,011
Mortgage servicing rights	0	0	1,747	1,747	0	0	2,422	2,422
Total	$0	$0	$8,547	$8,547	$0	$0	$5,136	$5,136

Originated mortgage servicing rights are recorded at their fair value at the time of sale of the underlying loan, and are amortized in proportion to and over the period of estimated net servicing income.  In accordance with GAAP, the Company must record impairment charges, on a nonrecurring basis, when the carrying value of certain strata exceeds their estimated fair value.  The fair value of mortgage servicing rights is based on a valuation model incorporating inputs that market participants would use in estimating future net servicing income.  Such inputs include estimates of the cost of servicing loans, appropriate discount rate and prepayment speeds.  These inputs are considered to be unobservable and contribute to the Level 3 classification of mortgage servicing rights.  The amount of impairment recognized is the amount by which the carrying value of the capitalized servicing rights for a stratum exceeds estimated fair value.  Impairment is recognized through a valuation allowance.

Loans are generally not recorded at fair value on a recurring basis.  Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans.  Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, adjusted based on non-observable inputs and the related nonrecurring fair value measurement adjustments and have generally been classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and, therefore, such valuations have been classified as Level 3.

The Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment.  The fair value of each reporting unit is compared to the carrying amount of that reporting unit in order to determine if impairment is indicated.  If so, the implied fair value of the reporting units' goodwill is compared to its carrying amount and the impairment loss is measured by the excess of the carrying value of the goodwill over fair value of the goodwill. In such situations, the Company performs a discounted cash flow modeling technique that requires management to make estimates regarding the amount and timing of expected future cash flows of the assets and liabilities of the reporting unit that enable the Company to calculate the implied fair value of the goodwill.  It also requires use of a discount rate that reflects the current return requirement of the market in relation to present risk-free interest rates, required equity market premiums and company-specific risk indicators.  As a result of the significant declines the equity markets experienced in 2008 and 2009, management determined triggering events had occurred and the goodwill associated with Nottingham Advisors, one of the Company's wealth management businesses, was tested for impairment during the fourth quarter of 2009 and 2008.  Based on those goodwill valuations performed using Level 3 inputs, the Company recognized an impairment charge and wrote down the carrying value of the goodwill by $3.1 and $1.7 million, respectively, to $2.5 million.

The Company determines fair values based on quoted market values where available or on estimates using present values or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.  In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument.  Certain financial instruments and all nonfinancial instruments are excluded from fair value disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.  The fair value of investment securities has been disclosed in Note C.

The carrying amounts and estimated fair values of the Company's other financial instruments at December 31, 2011 and 2010 are as follows:

	December 31, 2011		December 31, 2010
	Carrying	Fair	Carrying	Fair
(000's omitted)	Value	Value	Value	Value
Financial assets:
Net loans	$3,471,025	$3,491,729	$3,026,363	$3,039,331
Financial liabilities:
Deposits	4,795,245	4,810,856	3,934,045	3,944,261
Borrowings	728,281	828,018	728,460	808,902
Subordinated debt held by unconsolidated subsidiary trusts	102,048	73,211	102,024	82,490

The following is a further description of the principal valuation methods used by the Company to estimate the fair values of its financial instruments.

Loans – Fair values for variable rate loans that reprice frequently are based on carrying values.  Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

Deposits – The fair value of demand deposits, interest-bearing checking deposits, savings accounts and money market deposits is the amount payable on demand at the reporting date.  The fair value of time deposit obligations are based on current market rates for similar products.

Borrowings - Fair values for long-term borrowings are estimated using discounted cash flows and interest rates currently being offered on similar borrowings.

Subordinated debt held by unconsolidated subsidiary trusts - The fair value of subordinated debt held by unconsolidated subsidiary trusts are estimated using discounted cash flows and interest rates currently being offered on similar securities.

Other financial assets and liabilities – Cash and cash equivalents, accrued interest receivable and accrued interest payable have fair values which approximate the respective carrying values because the instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk.

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

Provision for (benefit from) income taxes

The provision for income taxes for the years ended December 31 is as follows:

(000's omitted)	2011	2010	2009
Current:
Federal	$17,145	$13,090	$6,400
State and other	375	776	1,788
Deferred:
Federal	10,674	7,633	3,929
State and other	2,191	1,566	(495)
Provision for income taxes	$30,385	$23,065	$11,622

Components of deferred tax asset (liability)

Components of the net deferred tax liability, included in other liabilities, as of December 31 are as follows:

(000's omitted)	2011	2010
Allowance for loan losses	$16,371	$16,437
Employee benefits	6,718	5,843
Interest rate swap	0	1,243
Debt extinguishment	1,821	2,111
Other	2,169	1,440
Deferred tax asset	27,079	27,074
Investment securities	37,386	7,487
Intangible assets	9,448	16,962
Loan origination costs	5,041	4,397
Depreciation	5,779	3,700
Mortgage servicing rights	678	933
Pension	2,860	4,163
Prepaid FDIC insurance	3,079	2,913
Deferred tax liability	64,271	40,555
Net deferred tax liability	($37,192)	($13,481)

Income tax rate reconciliation

A reconciliation of the differences between the federal statutory income tax rate and the effective tax rate for the years ended December 31 is shown in the following table:

	2011	2010	2009
Federal statutory income tax rate	35.0%	35.0%	35.0%
Increase (reduction) in taxes resulting from:
Tax-exempt interest	(7.1)	(8.3)	(14.1)
State income taxes, net of federal benefit	1.6	1.8	1.7
Other	(0.1)	(1.8)	(0.7)
Effective income tax rate	29.4%	26.7%	21.9%

Unrecognized tax benefits

A reconciliation of the unrecognized tax benefits for the years ended December 31 is shown in the following table:

(000's omitted)	2011	2010	2009
Unrecognized tax benefits at beginning of year	$98	$708	$856
Changes related to:
Positions taken during the current year	35	35	79
Settlements with taxing authorities	0	(408)	0
Lapse of statutes of limitation	0	(237)	(227)
Unrecognized tax benefits at end of year	$133	$98	$708

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BENEFIT PLANS

12 Months Ended

Dec. 31, 2011

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

BENEFIT PLANS

NOTE K:  BENEFIT PLANS

Pension and post-retirement plans

The Company provides a qualified defined benefit pension to qualified employees and retirees, and other post-retirement health and life insurance benefits to certain retirees, an unfunded supplemental pension plan for certain key executives, and an unfunded stock balance plan for certain of its nonemployee directors.  Using a measurement date of December 31, the following table shows the funded status of the Company's plans reconciled with amounts reported in the Company's consolidated statements of condition:

	Pension Benefits		Post-retirement Benefits
(000's omitted)	2011	2010	2011	2010
Change in benefit obligation:
Benefit obligation at the beginning of year	$81,321	$72,350	$3,594	$4,449
Service cost	2,959	2,780	0	0
Interest cost	4,497	3,909	153	195
Participant contributions	0	0	706	529
Plan acquisition/amendment	17,511	882	0	0
Deferred actuarial loss (gain)	11,713	4,971	46	(706)
Benefits paid	(5,144)	(3,571)	(1,147)	(873)
Benefit obligation at end of year	112,857	81,321	3,352	3,594
Change in plan assets:
Fair value of plan assets at beginning of year	96,439	74,628	0	0
Actual return of plan assets	1,479	9,758	0	0
Participant contributions	0	0	706	529
Employer contributions	11,623	15,624	441	344
Plan acquisition	21,912	0	0	0
Benefits paid	(5,144)	(3,571)	(1,147)	(873)
Fair value of plan assets at end of year	126,309	96,439	0	0
Funded status at year end	$13,452	$15,118	($3,352)	($3,594)
Amounts recognized in the consolidated balance sheet were:
Other assets	$22,929	$23,777	$0	$0
Other liabilities	(9,477)	($8,659)	($3,352)	($3,594)
Amounts recognized in accumulated other
comprehensive income (“AOCI”) were:
Net loss	$44,119	$28,152	$371	$333
Net prior service credit	(674)	(824)	(3,339)	(4,397)
Pre-tax AOCI	43,445	27,328	(2,968)	(4,064)
Taxes	(16,738)	(10,529)	1,135	1,557
AOCI at year end	$26,707	$16,799	($1,833)	($2,507)

The benefit obligation for the defined benefit pension plan was $103.4 million and $72.7 million as of December 31, 2011 and 2010, respectively, and the fair value of plan assets as of December 31, 2011 and 2010 was $126.3 million and $96.4 million, respectively.  Effective January 1, 2010, the defined benefit pension plan was modified to a new plan design, which combines service credits in the defined benefit plan with additional interest credit contributions to be made to the 401(k) Plan.  Effective September 30, 2011, the Wilber National Bank Retirement Plan was merged into the Community Bank System, Inc. Pension Plan and the combined plan was revalued.

The Company has unfunded supplemental pension plans for certain key active and retired executives.  The projected benefit obligation for the unfunded supplemental pension plan for certain key executives was $9.3 million for 2011 and $8.5 million for 2010, respectively.  The Company also has an unfunded stock balance plan for certain of its nonemployee directors.  The projected benefit obligation for the unfunded stock balance plan was $0.2 million for 2011 and $0.1 million for 2010, respectively.  The plan was frozen effective December 31, 2009.

Effective December 31, 2009, the Company terminated its post-retirement medical program for current and future employees.  Remaining plan participants will include only existing retirees as of December 31, 2010.  This change was accounted for as a negative plan amendment and a $3.5 million, net of income taxes, benefit for prior service was recognized in AOCI in 2009.  This negative plan amendment is being amortized over the expected benefit utilization period of remaining plan participants.

Amounts recognized in accumulated other comprehensive income, net of tax, for the year ended December 31, are as follows:

	Pension Benefits		Post-retirement Benefits
(000's omitted)	2011	2010	2011	2010
Prior service cost	$92	$96	$650	$651
Net (gain) loss	9,816	(307)	24	(445)
Total	$9,908	($211)	$674	$206

The estimated costs, net of tax, that will be amortized from accumulated other comprehensive (income) loss into net periodic (income) cost over the next fiscal year are as follows:

	Pension	Post-retirement
(000's omitted)	Benefits	Benefits
Prior service credit	($147)	($823)
Net loss	3,681	12
Total	$3,534	($811)

The weighted-average assumptions used to determine the benefit obligations as of December 31 are as follows:

	Pension Benefits		Post-retirement Benefits
	2011	2010	2011	2010
Discount rate	4.10%	5.00%	3.90%	4.50%
Expected return on plan assets	7.50%	7.50%	N/A	N/A
Rate of compensation increase	4.00%	4.00%	N/A	N/A

The net periodic benefit cost as of December 31 is as follows:

	Pension Benefits			Post-retirement Benefits
(000's omitted)	2011	2010	2009	2011	2010	2009
Service cost	$2,959	$2,780	$3,496	$0	$0	$575
Interest cost	4,497	3,909	3,676	153	195	494
Expected return on plan assets	(8,097)	(6,470)	(4,686)	0	0	0
Amortization of unrecognized net loss	2,362	2,421	2,761	8	17	0
Amortization of prior service cost	(149)	(189)	(123)	(1,057)	(1,057)	54
Amortization of transition obligation	0	0	0	0	0	41
Net periodic benefit cost	$1,572	$2,451	$5,124	($896)	($845)	$1,164

Prior service costs in which all or almost all of the plan's participants are fully eligible for benefits under the plan are amortized on a straight-line basis over the expected future working years of all active plan participants.  Prior service costs associated with transferring individual nonqualified plans are amortized on a straight-line basis over a three-year period.  Unrecognized gains or losses are amortized using the “corridor approach”, which is the minimum amortization required. Under the corridor approach, the net gain or loss in excess of 10 percent of the greater of the projected benefit obligation or the market-related value of the assets is amortized on a straight-line basis over the expected future working years of all active plan participants.

The weighted-average assumptions used to determine the net periodic pension cost for the years ended December 31 are as follows:

	Pension Benefits			Post-retirement Benefits
	2011	2010	2009	2011	2010	2009
Discount rate	4.40%	5.60%	6.10%	4.50%	5.15%	6.10%
Expected return on plan assets	7.50%	7.50%	8.00%	N/A	N/A	N/A
Rate of compensation increase	4.00%	4.00%	4.00%	N/A	N/A	N/A

The amount of benefit payments that are expected to be paid over the next ten years are as follows:

	Pension	Post-retirement
(000's omitted)	Benefits	Benefits
2012	6,259	390
2013	6,850	360
2014	7,224	284
2015	6,926	268
2016	7,555	229
2017-2021	42,873	1,009

The payments reflect future service and are based on various assumptions including retirement age and form of payment (lump-sum versus annuity). Actual results may differ from these estimates.

The assumed discount rate is used to reflect the time value of future benefit obligations.  The discount rate was determined based upon the yield on high-quality fixed income investments expected to be available during the period to maturity of the pension benefits.  This rate is sensitive to changes in interest rates.  A decrease in the discount rate would increase the Company's obligation and future expense while an increase would have the opposite effect.   The expected long-term rate of return was estimated by taking into consideration asset allocation, reviewing historical returns on the type of assets held and current economic factors.  The appropriateness of the assumptions is reviewed annually.

Plan Assets

The investment objective for the defined benefit pension plan is to achieve an average annual total return over a five-year period equal to the assumed rate of return used in the actuarial calculations.  At a minimum performance level, the portfolio should earn the return obtainable on high quality intermediate-term bonds.  The Company's perspective regarding portfolio assets combines both preservation of capital and moderate risk-taking.   Asset allocation favors equities, with a target allocation of approximately 60% equity securities and 40% fixed income securities.  In order to diversify the risk within the pension portfolio, the pension committee authorized that up to 15% of the assets may be in alternative investments, which are primarily hedge funds.  No more than 10% of the portfolio can be in stock of the Company.  Due to the volatility in the market, the target allocation is not always desirable and asset allocations will fluctuate between acceptable ranges.  Prohibited transactions include purchase of securities on margin, uncovered call options, and short sale transactions.

The fair values of the Company's defined benefit pension plan assets at December 31, 2011 by asset category are as follows:

Asset category (000's omitted)	Quoted Prices in Active Markets for Identical Assets Level 1	Significant Observable Inputs  Level 2	Significant Unobservable Inputs  Level 3	Total
Cash	$31,389	$0	$0	31,389
Equity securities:
U.S. large-cap	26,468	0	0	26,468
U.S mid/small cap	6,004	0	0	6,004
CBSI stock	10,512	0	0	10,512
International	10,923	0	0	10,923
Global  (a)	2,936	0	0	2,936
Commodities (b)	1,837	0	0	1,837
	58,680	0	0	58,680
Fixed income securities:
Government securities	8,600	8,000	0	16,600
Investment grade bonds	4,965	0	0	4,965
High yield(c)	9,401	496	0	9,897
	22,966	8,496	0	31,462
Other types of investments:
Alternative investments (d)	4,684	94	0	4,778
Total (e)	$117,719	$8,590	$0	$126,309

The fair values of the Company's defined benefit pension plan assets at December 31, 2010 by asset category are as follows:

Asset category (000's omitted)	Quoted Prices in Active Markets for Identical Assets Level 1	Significant Observable Inputs  Level 2	Significant Unobservable Inputs  Level 3	Total
Cash	$10,851	$0	$0	$10,851
Equity securities:
U.S. large-cap	30,547	0	0	30,547
U.S mid/small cap	6,130	0	0	6,130
CBSI stock	8,728	0	0	8,728
International	12,866	0	0	12,866
Global  (a)	3,153	0	0	3,153
Commodities (b)	694	0	0	694
	62,118	0	0	62,118
Fixed income securities:
Government securities	4,900	7,212	0	12,112
Investment grade bonds	5,367	0	0	5,367
High yield(c)	5,509	0	0	5,509
	15,776	7,212	0	22,988
Other types of investments:
Alternative investments (d)	0	482	0	482
Total (e)	$88,745	$7,694	$0	$96,439

(a) This category includes securities that invest approximately 50% in

      U.S. equity securities and 50% international equity securities.

(b) This category includes investments in exchange traded funds reflecting  

      the performance of an underlying commodity index.

(c) This category is exchange-traded funds representing a diversified index

      of high yield corporate bonds.

(d) This category is comprised of non-traditional investment classes

      including private equity funds and alternative exchange funds.

(e) Excludes dividends and interest receivable totaling $306,000 and

      $317,000 at December 31, 2011 and 2010, respectively

The Company makes contributions to its funded qualified pension plan as required by government regulation or as deemed appropriate by management after considering the fair value of plan assets, expected return on such assets, and the value of the accumulated benefit obligation.  The Company made a contribution to its defined benefit pension plan of $11 million during the fourth quarter of 2011.  The Company funds the payment of benefit obligations for the supplemental pension and post-retirement plans because such plans do not hold assets for investment.

Tupper Lake National Bank (“TLNB”) participated in the Pentegra Defined Benefit Plan for Financial Institutions (“Pentegra DB Plan”), a multi-employer tax qualified defined benefit pension plan.  The identification number and plan number of the Pentegra DB Plan are 13-5645888 and 333, respectively. All employees of TLNB who met minimum service requirements participated in the plan.  As of June 30, 2010, the Pentegra DB Plan had total assets of $2.4 billion, actuarial present value of accumulated benefits of $2.7 billion and was at least 80 percent funded.  The assets of the multi-employer plan may be used to satisfy obligations of any of the employers participating in the plan.  As a result, contributions made by the Company may be used to provide benefits to participants of other participating employers.  Contributions for 2011, 2010 and 2009 were $131,000, $39,000 and $21,000, respectively. Contributions made by the Company to the Pentegra DB Plan do not represent more than 5% of contributions made to the Pentegra DB Plan.

The assumed health care cost trend rate used in the post-retirement health plan at December 31, 2011 was 8.50% for the pre-65 participants and 6.75% for the post-65 participants for medical costs and 8.50% for prescription drugs.  The rate to which the cost trend rate is assumed to decline (the ultimate trend rate) and the year that the rate reaches the ultimate trend rate is 5.0% and 2018, respectively.

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan.  A one-percentage-point increase in the trend rate would increase the service and interest cost components by $600 and increase the benefit obligation by $14,000.  A one-percentage-point decrease in the trend rate would decrease the service and interest cost components by $600 and decrease the benefit obligation by $13,000.

401(k) Employee Stock Ownership Plan

The Company has a 401(k) Employee Stock Ownership Plan in which employees can contribute from 1% to 90% of eligible compensation, with the first 3% being eligible for a 100% matching contribution in the form of Company common stock and the next 3% being eligible for a 50% matching contributions in the form of Company common stock.  The expense recognized under this plan for the years ended December 31, 2011, 2010 and 2009 was $2,752,000, $2,536,000, and $2,342,000, respectively.  Effective January 1, 2010 the defined benefit pension plan was modified to a new plan design that includes an interest credit contribution to be made to the 401(k) plan.  The expense recognized for this interest credit contribution for the year ended December 31, 2011 was $203,000.

Other Deferred Compensation Arrangements

In addition to the supplemental pension plans for certain executives, the Company has nonqualified deferred compensation arrangements for several former directors, officers and key employees.  All benefits provided under these plans are unfunded and payments to plan participants are made by the Company.  At December 31, 2011 and 2010, the Company has recorded a liability of $4,734,000 and $3,693,000, respectively.  The expense recognized under these plans for the years ended December 31, 2011, 2010, and 2009 was $584,000, $546,000, and $616,000, respectively.

Deferred Compensation Plan for Directors

Directors may defer all or a portion of their director fees under the Deferred Compensation Plan for Directors.  Under this plan, there is a separate account for each participating director which is credited with the amount of shares that could have been purchased with the director's fees as well as any dividends on such shares.  On the distribution date, the director will receive common stock equal to the accumulated share balance in his account.  As of December 31, 2011 and 2010 there were 140,029 and 127,761 shares credited to the participants' accounts, for which a liability of $2,863,000 and $2,519,000 was accrued, respectively.  The expense recognized under the plan for the years ended December 31, 2011, 2010 and 2009, was $125,000, $107,000, and $89,000, respectively.