FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2019

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, 2019
(000's omitted)	Level 1		Level 2			Level 3		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,913,361	$	121,611		$	0	$	2,034,972
Obligations of state and political subdivisions		0		433,159			0		433,159
Government agency mortgage-backed securities		0		386,543			0		386,543
Corporate debt securities		0		2,553			0		2,553
Government agency collateralized mortgage obligations		0		65,716			0		65,716
Total available-for-sale investment securities		1,913,361		1,009,582			0		2,922,943
Equity securities		464		0			0		464
Mortgage loans held for sale		0		212			0		212
Commitments to originate real estate loans for sale		0		0			20		20
Forward sales commitments		0		(6	)		0		(6	)
Interest rate swap agreements asset		0		835			0		835
Interest rate swap agreements liability		0		(705	)		0		(705	)
Total	$	1,913,825	$	1,009,918		$	20	$	2,923,763

	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

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, 2019								December 31, 2018
(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	$	2,831	$	2,831	$	0	$	0	$	1,102	$	1,102
Other real estate owned		0		0		1,524		1,524		0		0		1,320		1,320
Total	$	0	$	0	$	4,355	$	4,355	$	0	$	0	$	2,422	$	2,422

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, 2019		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Range (Weighted Average)
Impaired loans	$	2,831	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 40.4% (35.0	%)
Other real estate owned		1,524	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 75.8% (23.8	%)
Commitments to originate real estate loans for sale		20	Discounted cash flow	Embedded servicing value		1	%

(000's omitted)	Fair Value at December 31, 2018		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	%)

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, 2019 and December 31, 2018 are as follows:

	March 31, 2019				December 31, 2018
(000's omitted)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Net loans	$	6,216,979	$	6,266,587	$	6,231,837	$	6,247,939
Financial liabilities:
Deposits		8,619,662		8,607,827		8,322,371		8,308,765
Short-term borrowings		0		0		54,400		54,400
Securities sold under agreement to repurchase, short-term		249,880		249,880		259,367		259,367
Other long-term debt		1,953		1,914		1,976		1,921
Subordinated debt held by unconsolidated subsidiary trusts		97,939		97,939		97,939		97,939