FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2014

Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis

There were no transfers between any of the levels for the periods presented.

	December 31, 2014
(000's omitted)	Level 1		Level 2			Level 3		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,496,667	$	21,066		$	0	$	1,517,733
Obligations of state and political subdivisions		0		671,903			0		671,903
Government agency mortgage-backed securities		0		237,728			0		237,728
Corporate debt securities		0		27,091			0		27,091
Government agency collateralized mortgage obligations		0		18,025			0		18,025
Marketable equity securities		445		0			0		445
Total available-for-sale investment securities		1,497,112		975,813			0		2,472,925
Mortgage loans held for sale		0		1,042			0		1,042
Commitments to originate real estate loans for sale		0		0			185		185
Forward sales commitments		0		(43	)		0		(43	)
Total	$	1,497,112	$	976,812		$	185	$	2,474,109
	December 31, 2013
(000's omitted)	Level 1		Level 2			Level 3		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,182,261	$	29,886		$	0	$	1,212,147
Obligations of state and political subdivisions		0		668,982			0		668,982
Government agency mortgage-backed securities		0		254,978			0		254,978
Corporate debt securities		0		27,587			0		27,587
Government agency collateralized mortgage obligations		0		22,048			0		22,048
Marketable equity securities		421		0			0		421
Total available-for-sale investment securities		1,182,682		1,003,481			0		2,186,163
Mortgage loans held for sale		0		728			0		728
Commitments to originate real estate loans for sale		0		0			44		44
Forward sales commitments		0		27			0		27
Total	$	1,182,682	$	1,004,236		$	44	$	2,186,962

Summary of 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,
	2014			2013
(000's omitted)	Commitments to Originate Real Estate Loans for Sale			Pooled Trust Preferred Securities			Commitments to Originate Real Estate Loans for Sale			Total
Beginning balance	$	44		$	49,600		$	0		$	49,600
Total (losses)/gains included in earnings⁽¹⁾⁽³⁾		(423	)		(15,201	)		(249	)		(15,450	)
Total gains included in other comprehensive income⁽²⁾		0			12,379			0			12,379
Principal reductions		0			(5,944	)		0			(5,944	)
Sales		0			(40,834	)		0			(40,834	)
Commitments to originate real estate loans held for sale, net		564			0			293			293
Ending balance	$	185		$	0		$	44		$	44

⁽¹⁾	Amounts included in earnings associated with the pooled trust preferred securities relate to accretion of related discount, which are reported in interest and dividends on taxable investments

⁽²⁾	Amounts included in other comprehensive income associated with the pooled trust preferred securities relate to changes in unrealized loss and are reported as a component of net unrealized gains/(losses) on available-for-sale securities in the Statement of Comprehensive Income.

⁽³⁾	Amounts included in earnings associated with the commitments to originate real estate loans for sale are reported as a component of other banking services in the Consolidated Statement of Income.

Assets and Liabilities Measured on a Non-Recurring Basis

Assets and liabilities measured on a non-recurring basis:

	December 31, 2014								December 31, 2013
(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	$	0	$	0	$	0	$	600	$	0	$	600
Other real estate owned		0		0		1,855		1,855		0		0		5,060		5,060
Total	$	0	$	0	$	1,855	$	1,855	$	0	$	600	$	5,060	$	5,660

Significant Unobservable Inputs Used in Determination of Fair Value of Assets Classified as Level 3 on a Recurring or Non-Recurring Basis

The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis as of December 31, 2014 are as follows:

(000's omitted)	Fair Value		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Range (Weighted Average)

Other real estate owned		1,855	Fair value of collateral	Estimated cost of disposal/market adjustment		10.0% - 77.5% (30.6	%)

Commitments to originate real estate loans for sale		185	Discounted cash flow	Embedded servicing value		1	%

The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis as of December 31, 2013 are as follows:

(000's omitted)	Fair Value		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Range (Weighted Average)

Other real estate owned		5,060	Fair value of collateral	Estimated cost of disposal/market adjustment		11.0% - 54.4% (28.1	%)

Commitments to originate real estate loans for sale		44	Discounted cash flow	Embedded servicing value		1	%

Carrying Amounts and Estimated Fair Values of Other Financial Instruments

The carrying amounts and estimated fair values of the Company’s other financial instruments that are not accounted for at fair value at December 31, 2014 and 2013 are as follows:

	December 31, 2014				December 31, 2013
	Carrying		Fair		Carrying		Fair
(000's omitted)	Value		Value		Value		Value
Financial assets:
Net loans	$	4,190,865	$	4,251,565	$	4,064,764	$	4,044,449
Financial liabilities:
Deposits		5,935,264		5,935,690		5,896,044		5,898,138
Borrowings		338,000		338,000		141,913		141,913
Subordinated debt held by unconsolidated subsidiary trusts		102,122		85,189		102,097		109,284

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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