INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES [Abstract]

Provision for Income Taxes

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

(000’s omitted)	2018		2017			2016
Current:
Federal	$	32,504	$	31,152		$	32,829
State and other		9,180		6,788			4,890
Deferred:
Federal		2,122		(28,146	)		11,444
State and other		541		(546	)		1,622
Provision for income taxes	$	44,347	$	9,248		$	50,785

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)	2018			2017
Allowance for loan losses	$	12,131		$	11,675
Employee benefits		4,479			4,216
Other, net		541			0
Deferred tax asset		17,151			15,891
Investment securities		14,451			22,690
Tax-deductible goodwill		39,540			39,154
Loan origination costs		6,851			6,109
Depreciation		3,098			2,372
Mortgage servicing rights		277			330
Pension		11,078			13,228
Other, net		0			542
Deferred tax liability		75,295			84,425
Net deferred tax liability	$	(58,144	)	$	(68,534	)

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:

	2018			2017			2016
Federal statutory income tax rate		21.0	%		35.0	%		35.0	%
Increase (reduction) in taxes resulting from:
Tax-exempt interest		(1.6	)		(3.8	)		(4.0	)
State income taxes, net of federal benefit		3.4			2.5			2.7
Stock-based compensation		(0.9	)		(2.0	)		0
Federal deferred tax revaluation adjustment		0			(23.7	)		0
Federal tax credits		(1.4	)		(1.5	)		0
Other, net		0.3			(0.7	)		(0.9	)
Effective income tax rate		20.8	%		5.8	%		32.8	%

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)	2018			2017			2016
Unrecognized tax benefits at beginning of year	$	24		$	92		$	127
Changes related to:
Lapse of statutes of limitations		(24	)		(68	)		(35	)
Unrecognized tax benefits at end of year	$	0		$	24		$	92