FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2018

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.

	December 31, 2018
(000's omitted)	Level 1		Level 2			Level 3		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,896,931	$	126,822		$	0	$	2,023,753
Obligations of state and political subdivisions		0		459,154			0		459,154
Government agency mortgage-backed securities		0		382,477			0		382,477
Corporate debt securities		0		2,546			0		2,546
Government agency collateralized mortgage obligations		0		68,119			0		68,119
Total available-for-sale investment securities		1,896,931		1,039,118			0		2,936,049
Equity securities		432		0			0		432
Mortgage loans held for sale		0		83			0		83
Interest rate swap agreements asset		0		793			0		793
Interest rate swap agreements liability		0		(742	)		0		(742	)
Total	$	1,897,363	$	1,039,252		$	0	$	2,936,615

	December 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	$	1,909,290	$	144,781		$	0	$	2,054,071
Obligations of state and political subdivisions		0		528,956			0		528,956
Government agency mortgage-backed securities		0		357,538			0		357,538
Corporate debt securities		0		2,623			0		2,623
Government agency collateralized mortgage obligations		0		87,374			0		87,374
Marketable equity securities		526		0			0		526
Total available-for-sale investment securities		1,909,816		1,121,272			0		3,031,088
Mortgage loans held for sale		0		461			0		461
Commitments to originate real estate loans for sale		0		0			89		89
Forward sales commitments		0		4			0		4
Interest rate swap agreements asset		0		1,064			0		1,064
Interest rate swap agreements liability		0		(904	)		0		(904	)
Total	$	1,909,816	$	1,121,897		$	89	$	3,031,802

Assets and Liabilities Measured on a Non-Recurring Basis

Assets and liabilities measured on a non-recurring basis:

	December 31, 2018								December 31, 2017
(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	$	1,102	$	1,102	$	0	$	0	$	0	$	0
Other real estate owned		0		0		1,320		1,320		0		0		1,915		1,915
Total	$	0	$	0	$	2,422	$	2,422	$	0	$	0	$	1,915	$	1,915

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 as of December 31, 2018 are as follows:

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

Impaired loans	$	1,102	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 35.4% (28.8	%)
Other real estate owned		1,320	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 69.3% (23.8	%)

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, 2017 are as follows:

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

Other real estate owned	$	1,915	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 99.0% (38.5	%)
Commitments to originate real estate loans for sale		89	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, 2018 and 2017 are as follows:

	December 31, 2018				December 31, 2017
(000's omitted)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Net loans	$	6,231,837	$	6,247,939	$	6,209,174	$	6,244,941
Financial liabilities:
Deposits		8,322,371		8,308,765		8,444,420		8,431,481
Short-term borrowings		54,400		54,400		24,000		24,000
Securities sold under agreement to repurchase, short-term		259,367		259,367		337,011		337,011
Other long-term debt		1,976		1,921		2,071		2,021
Subordinated debt held by unconsolidated subsidiary trusts		97,939		97,939		122,814		122,814