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