PARENT COMPANY STATEMENTS

12 Months Ended

Dec. 31, 2019

PARENT COMPANY STATEMENTS [Abstract]

NOTE Q: PARENT COMPANY STATEMENTS

The condensed statements of condition of the parent company, Community Bank System, Inc., at December 31 are as follows:

(000's omitted)	2019		2018
Assets:
Cash and cash equivalents	$	180,663	$	116,133
Investment securities		2,853		3,452
Investment in and advances to:
Bank subsidiary		1,594,790		1,522,109
Non-bank subsidiaries		180,487		182,617
Other assets		12,406		8,957
Total assets	$	1,971,199	$	1,833,268

Liabilities and shareholders' equity:
Accrued interest and other liabilities	$	24,850	$	21,546
Borrowings		91,115		97,939
Shareholders' equity		1,855,234		1,713,783
Total liabilities and shareholders' equity	$	1,971,199	$	1,833,268

The condensed statements of income of the parent company for the years ended December 31 is as follows:

(000's omitted)	2019			2018			2017
Revenues:
Dividends from subsidiaries:
Bank subsidiary	$	115,000		$	98,000		$	91,000
Non-bank subsidiaries		27,600			9,250			35,500
Interest and dividends on investments		134			161			133
Total revenues		142,734			107,411			126,633
Expenses:
Interest on borrowings		4,244			4,677			3,904
Acquisition expenses		1,248			0			91
Loss on debt prepayment		0			318			0
Other expenses		477			131			26
Total expenses		5,969			5,126			4,021

Income before tax benefit and equity in undistributed net income of subsidiaries		136,765			102,285			122,612
Income tax benefit		4,545			1,330			1,930
Income before equity in undistributed net income of subsidiaries		141,310			103,615			124,542
Equity in undistributed net income of subsidiaries		27,753			65,026			26,175
Net income	$	169,063		$	168,641		$	150,717
Other comprehensive income/(loss), net of tax:
Changes in other comprehensive (loss)/income related to pension and other post retirement obligations		(2,045	)		(11,204	)		168
Changes in other comprehensive income/(loss) related to unrealized losses on available-for-sale securities		37,124			(30,402	)		(11,065	)
Other comprehensive income/(loss)		35,079			(41,606	)		(10,897	)
Comprehensive income	$	204,142		$	127,035		$	139,820

The statements of cash flows of the parent company for the years ended December 31 is as follows:

(000's omitted)	2019			2018			2017
Operating activities:
Net income	$	169,063		$	168,641		$	150,717
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed net income of subsidiaries		(27,753	)		(65,026	)		(26,175	)
Net change in other assets and other liabilities		86			(1,084	)		1,870
Net cash provided by operating activities		141,396			102,531			126,412
Investing activities:
Proceeds from redemption of investment securities		0			776			0
Cash paid for acquisitions, net of cash acquired of $1,328, $0, and $150,534, respectively		(92,056	)		0			(139,471	)
Return of capital from/(capital contributions to)		100,680			0			(11,063	)
Net cash provided by/(used in) investing activities		8,624			776			(150,534	)
Financing activities:
Repayment of advances from subsidiaries		(1,652	)		0			0
Repayment of borrowings		(22,681	)		(25,207	)		0
Issuance of common stock		12,200			12,507			9,700
Purchase of treasury stock		(286	)		(298	)		(3,306	)
Sale of treasury stock		6,884			12,561			10,060
Increase in deferred compensation arrangements		286			298			3,306
Cash dividends paid		(80,241	)		(71,495	)		(62,305	)
Net cash used in financing activities		(85,490	)		(71,634	)		(42,545	)
Change in cash and cash equivalents		64,530			31,673			(66,667	)
Cash and cash equivalents at beginning of year		116,133			84,460			151,127
Cash and cash equivalents at end of year	$	180,663		$	116,133		$	84,460

Supplemental disclosures of cash flow information:
Cash paid for interest	$	4,306		$	4,857		$	3,826
Supplemental disclosures of noncash financing activities
Dividends declared and unpaid	$	21,342		$	19,808		$	17,460
Advances from subsidiaries		1,691			0			0
Capital contributions to subsidiaries		0			0			513,769
Common stock issued for acquisition		0			0			343,132