FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2015

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, 2015
(000's omitted)	Level 1		Level 2			Level 3		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,899,978	$	0		$	0	$	1,899,978
Obligations of state and political subdivisions		0		666,883			0		666,883
Government agency mortgage-backed securities		0		210,865			0		210,865
Corporate debt securities		0		16,680			0		16,680
Government agency collateralized mortgage obligations		0		13,308			0		13,308
Marketable equity securities		399		0			0		399
Total available-for-sale investment securities		1,900,377		907,736			0		2,808,113
Mortgage loans held for sale		0		932			0		932
Commitments to originate real estate loans for sale		0		0			117		117
Forward sales commitments		0		(37	)		0		(37	)
Total	$	1,900,377	$	908,631		$	117	$	2,809,125

	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

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:

	For the Year Ending December 31,
	2015			2014
(000's omitted)	Commitments to Originate Real Estate Loans for Sale			Commitments to Originate Real Estate Loans for Sale
Beginning balance	$	185		$	44
Total (losses)/gains included in earnings⁽¹⁾		(808	)		(423	)
Commitments to originate real estate loans held for sale, net		740			564
Ending balance	$	117		$	185

⁽¹⁾ 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, 2015								December 31, 2014
(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	$	1,765	$	1,765	$	0	$	0	$	0	$	0
Other real estate owned		0		0		2,088		2,088		0		0		1,855		1,855
Total	$	0	$	0	$	3,853	$	3,853	$	0	$	0	$	1,855	$	1,855

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, 2015 are as follows:

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

Other real estate owned	$	2,088	Fair value of collateral	Estimated cost of disposal/market adjustment		5.3% - 74.0% (27.7	%)

Impaired loans		1,765	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 20.0% (17.9	%)
Commitments to originate real estate loans for sale		117	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, 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	%

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, 2015 and 2014 are as follows:

(000's omitted)	December 31, 2015				December 31, 2014
(000's omitted)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Net loans	$	4,755,974	$	4,808,856	$	4,190,865	$	4,251,565
Financial liabilities:
Deposits		6,873,474		6,871,098		5,935,264		5,935,690
Borrowings		301,300		301,300		338,000		338,000
Subordinated debt held by unconsolidated subsidiary trusts		102,146		84,680		102,122		85,189