ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2012

ACQUISITIONS [Abstract]

Estimated fair value of assets acquired and liabilities assumed

The assets and liabilities assumed in the acquisitions were recorded at their estimated fair values based on management's best estimates using information available at the dates of the acquisition, and are subject to adjustment based on updated information not available at the time of acquisition..  The following table summarizes the estimated fair value of the assets acquired and liabilities assumed.

(000s omitted)	2012			2011
Consideration paid (received):
Community Bank System, Inc. common stock	$	0		$	82,580
Cash		(595,462	)		22,155
Total net consideration paid (received)		(595,462	)		104,735
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		5,510			26,901
Investment securities		0			297,573
Loans		160,116			462,334
Premises and equipment		4,941			6,360
Accrued interest receivable		588			2,615
Other assets and liabilities, net		171			46,942
Core deposit intangibles		6,521			4,016
Other intangibles		0			1,858
Deposits		(797,962	)		(771,554	)
Borrowings		0			(19,668	)
Total identifiable assets (liabilities), net		(620,115	)		57,377
Goodwill	$	24,653		$	47,358

Summary of loans acquired

The following is a summary of the loans acquired in the Wilber acquisition at the date of 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 following is a summary of the loans acquired from HSBC and First Niagara at the date of acquisition:

(000's omitted)	Acquired Impaired Loans		Acquired Non-Impaired Loans			Total Acquired  Loans
Contractually required principal and interest at acquisition	$	0	$	201,745		$	201,745
Contractual cash flows not expected to be collected		0		(3,555	)		(3,555	)
Expected cash flows at acquisition		0		198,190			198,190
Interest component of expected cash flows		0		(38,074	)		(38,074	)
Fair value of acquired loans	$	0	$	160,116		$	160,116