FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2017

FAIR VALUE [Abstract]

Summary of Fair Value Measured on a Recurring Basis

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis.  There were no transfers between any of the levels for the periods presented.

	March 31, 2017
(000's omitted)	Level 1		Level 2			Level 3		Total Fair  Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,908,234	$	0		$	0	$	1,908,234
Obligations of state and political subdivisions		0		578,658			0		578,658
Government agency mortgage-backed securities		0		239,054			0		239,054
Corporate debt securities		0		5,681			0		5,681
Government agency collateralized mortgage obligations		0		8,809			0		8,809
Marketable equity securities		454		0			0		454
Total available-for-sale investment securities		1,908,688		832,202			0		2,740,890
Mortgage loans held for sale		0		673			0		673
Commitments to originate real estate loans for sale		0		0			114		114
Forward sales commitments		0		(19	)		0		(19	)
Total	$	1,908,688	$	832,856		$	114	$	2,741,658

	December 31, 2016
(000's omitted)	Level 1		Level 2		Level 3		Total Fair  Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,902,762	$	0	$	0	$	1,902,762
Obligations of state and political subdivisions		0		594,990		0		594,990
Government agency mortgage-backed securities		0		235,230		0		235,230
Corporate debt securities		0		5,687		0		5,687
Government agency collateralized mortgage obligations		0		9,535		0		9,535
Marketable equity securities		452		0		0		452
Total available-for-sale investment securities		1,903,214		845,442		0		2,748,656
Mortgage loans held for sale		0		2,416		0		2,416
Commitments to originate real estate loans for sale		0		0		54		54
Forward sales commitments		0		3		0		3
Total	$	1,903,214	$	847,861	$	54	$	2,751,129

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:

	Three Months Ended March 31,
	2017			2016
(000's omitted)	Commitments  to Originate Real Estate Loans for Sale			Commitments  to Originate Real Estate Loans for Sale
Beginning balance	$	54		$	117
Total losses included in earnings (1)		(54	)		(117	)
Commitments to originate real estate loans held for sale, net		114			282
Ending balance	$	114		$	282

⁽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

The fair value information of assets and liabilities measured on a non-recurring basis presented below is not as of the period-end, but rather as of the date the fair value adjustment was recorded closest to the date presented.

	March 31, 2017								December 31, 2016
(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	$	535	$	535	$	0	$	0	$	633	$	633
Other real estate owned		0		0		2,486		2,486		0		0		1,966		1,966
Total	$	0	$	0	$	3,021	$	3,021	$	0	$	0	$	2,599	$	2,599

Significant Unobservable Inputs, Fair Value Valuation Techniques

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

(000's omitted)	Fair Value at  March 31, 2017		Valuation Technique	Significant Unobservable Inputs	Significant  Unobservable Input  Range (Weighted Average)
Other real estate owned	$	2,486	Fair Value of Collateral	Estimated cost of disposal/market adjustment		2.3% - 96.0% (35.4	%)
Impaired loans		535	Fair Value of Collateral	Estimated cost of disposal/market adjustment		9% - 43% (26.0	%)
Commitments to originate real estate loans for sale		114	Discounted cash flow	Embedded servicing value		1	%

(000's omitted)	Fair Value at  December 31, 2016		Valuation Technique	Significant Unobservable Inputs	Significant  Unobservable Input  Range (Weighted Average)
Other real estate owned	$	1,966	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 97.0% (29.6	%)
Impaired loans		633	Fair value of collateral	Estimated cost of disposal/market adjustment		15.0% - 50.0% (36.5	%)
Commitments to originate real estate loans for sale		54	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 March 31, 2017 and December 31, 2016 are as follows:

	March 31, 2017				December 31, 2016
(000's omitted)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Net loans	$	4,885,117	$	4,918,453	$	4,901,329	$	4,935,140
Financial liabilities:
Deposits		7,336,877		7,331,201		7,075,954		7,071,191
Borrowings		0		0		146,200		146,200
Subordinated debt held by unconsolidated subsidiary trusts		102,177		91,164		102,170		90,144