FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2019

FAIR VALUE [Abstract]

Fair Value Measured on a Recurring Basis

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.  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.

	September 30, 2019
(000's omitted)	Level 1		Level 2			Level 3		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,343,370	$	163,277		$	0	$	1,506,647
Obligations of state and political subdivisions		0		458,090			0		458,090
Government agency mortgage-backed securities		0		411,816			0		411,816
Corporate debt securities		0		2,540			0		2,540
Government agency collateralized mortgage obligations		0		58,009			0		58,009
Total available-for-sale investment securities		1,343,370		1,093,732			0		2,437,102
Equity securities		461		0			0		461
Interest rate swap agreements asset		0		1,095			0		1,095
Interest rate swap agreements liability		0		(748	)		0		(748	)
Total	$	1,343,831	$	1,094,079		$	0	$	2,437,910

	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.

	September 30, 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	$	1,729	$	1,729	$	0	$	0	$	1,102	$	1,102
Mortgage servicing rights		0		0		93		93		0		0		0		0
Other real estate owned		0		0		1,258		1,258		0		0		1,320		1,320
Total	$	0	$	0	$	3,080	$	3,080	$	0	$	0	$	2,422	$	2,422

Significant Unobservable Inputs, Fair Value Valuation Techniques

The Company determines fair values based on quoted market values, where available, estimates of present values, or other valuation techniques.  Those techniques are significantly affected by the assumptions used, including, but not limited to, the discount rate and estimates of future cash flows.  In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in immediate settlement of the instrument.  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 September 30, 2019		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Range (Weighted Average)
Impaired loans	$	1,729	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 40.4% (40.4	%)
Other real estate owned		1,258	Fair value of collateral	Estimated cost of disposal/market adjustment		0.5% - 77.4% (35.7	%)
Mortgage servicing rights		93	Discounted cash flow	Weighted average constant prepayment rate		43.0	%
				Weighted average discount rate		2.69	%
				Adequate compensation	$7/loan

(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

Certain financial instruments and all nonfinancial instruments are excluded from fair value disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.  The carrying amounts and estimated fair values of the Company’s other financial instruments that are not accounted for at fair value at September 30, 2019 and December 31, 2018 are as follows:

	September 30, 2019				December 31, 2018
(000's omitted)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Net loans	$	6,803,768	$	6,971,242	$	6,231,837	$	6,247,939
Financial liabilities:
Deposits		9,168,285		9,166,701		8,322,371		8,308,765
Short-term borrowings		0		0		54,400		54,400
Securities sold under agreement to repurchase, short-term		233,333		233,333		259,367		259,367
Other long-term debt		4,328		4,303		1,976		1,921
Subordinated notes payable		13,814		13,814		0		0
Subordinated debt held by unconsolidated subsidiary trusts		77,320		77,320		97,939		97,939