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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2019
INCOME TAXES [Abstract]  
Provision for Income Taxes
The provision for income taxes for the years ended December 31 is as follows:

(000’s omitted)
 
2019
   
2018
   
2017
 
Current:
                 
Federal
 
$
34,804
   
$
32,504
   
$
31,152
 
State and other
   
7,773
     
9,180
     
6,788
 
Deferred:
                       
Federal
   
(699
)
   
2,122
     
(28,146
)
State and other
   
(1,603
)
   
541
     
(546
)
Provision for income taxes
 
$
40,275
   
$
44,347
   
$
9,248
 
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)
 
2019
   
2018
 
Allowance for loan losses
 
$
12,059
   
$
12,131
 
Employee benefits
   
5,393
     
4,479
 
Operating lease liabilities
   
9,801
     
0
 
Other, net
   
837
     
541
 
Deferred tax asset
   
28,090
     
17,151
 
                 
Investment securities
   
21,547
     
14,451
 
Goodwill and intangibles
   
39,189
     
39,540
 
Operating lease right-of-use assets
   
9,566
     
0
 
Loan origination costs
   
7,639
     
6,851
 
Depreciation
   
2,736
     
3,098
 
Mortgage servicing rights
   
162
     
277
 
Pension
   
13,769
     
11,078
 
Deferred tax liability
   
94,608
     
75,295
 
Net deferred tax liability
 
$
(66,518
)
 
$
(58,144
)
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:


 
2019
   
2018
   
2017
 
Federal statutory income tax rate
   
21.0
%
   
21.0
%
   
35.0
%
Increase (reduction) in taxes resulting from:
                       
Tax-exempt interest
   
(1.5
)
   
(1.6
)
   
(3.8
)
State income taxes, net of federal benefit
   
2.5
     
3.4
     
2.5
 
Stock-based compensation
   
(1.6
)
   
(0.9
)
   
(2.0
)
Federal deferred tax revaluation adjustment
   
0
     
0
     
(23.7
)
Federal tax credits
   
(1.3
)
   
(1.4
)
   
(1.5
)
Other, net
   
0.1
     
0.3
     
(0.7
)
Effective income tax rate
   
19.2
%
   
20.8
%
   
5.8
%
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)
 
2019
   
2018
   
2017
 
Unrecognized tax benefits at beginning of year
 
$
0
   
$
24
   
$
92
 
Changes related to:
                       
Lapse of statutes of limitations
   
0
     
(24
)
   
(68
)
Unrecognized tax benefits at end of year
 
$
0
   
$
0
   
$
24