INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES [Abstract]

Provision for Income Taxes

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

(000's omitted)	2015		2014		2013
Current:
Federal	$	27,663	$	30,006	$	24,202
State and other		2,608		870		866
Deferred:
Federal		9,604		6,867		5,806
State and other		1,112		594		1,324
Provision for income taxes	$	40,987	$	38,337	$	32,198

Components of Net Deferred Tax Liability

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

(000's omitted)	2015			2014
Allowance for loan losses	$	17,791		$	17,476
Employee benefits		6,633			6,834
Debt extinguishment		613			904
Other, net		9,704			10,725
Deferred tax asset		34,741			35,939
Investment securities		38,314			37,527
Tax-deductible goodwill		39,724			35,842
Loan origination costs		7,295			6,792
Depreciation		886			3,722
Mortgage servicing rights		565			419
Pension		14,807			16,845
Deferred tax liability		101,591			101,147
Net deferred tax liability	$	(66,850	)	$	(65,208	)

Reconciliation of Differences between Federal Statutory Income Tax Rate and Effective Tax Rate

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:

	2015			2014			2013
Federal statutory income tax rate		35.0	%		35.0	%		35.0	%
Increase (reduction) in taxes resulting from:
Tax-exempt interest		(5.0	)		(5.4	)		(6.3	)
State income taxes, net of federal benefit		1.8			0.7			1.3
Other		(0.8	)		(0.7	)		(1.0	)
Effective income tax rate		31.0	%		29.6	%		29.0	%

Reconciliation of 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)	2015			2014		2013
Unrecognized tax benefits at beginning of year	$	162		$	138	$	70
Changes related to:
Positions taken during the current year		0			24		68
Lapse of statutes of limitations		(35	)		0		0
Unrecognized tax benefits at end of year	$	127		$	162	$	138