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ACQUISITIONS (Tables)
 6 Months Ended
Jun. 30, 2020
ACQUISITIONS [Abstract]  
Estimated Fair Value of Assets Acquired and Liabilities Assumed
The following table summarizes the estimated fair value of the assets acquired and liabilities assumed after considering the measurement period adjustments described above:

  
2020
    
2019
  
(000s omitted)
  
Steuben
    
Kinderhook
    
Other (1)
    
Total
  
Consideration paid :
                        
Cash
  
$
21,613
    
$
93,384
    
$
1,650
    
$
95,034
  
Community Bank System, Inc. common stock
    
76,942
      
0
      
0
      
0
  
Total net consideration paid
    
98,555
      
93,384
      
1,650
      
95,034
  
Recognized amounts of identifiable assets acquired and liabilities assumed:
                                
Cash and cash equivalents
    
55,973
      
90,381
      
0
      
90,381
  
Investment securities
    
180,497
      
39,770
      
0
      
39,770
  
Loans, net of allowance for credit losses on PCD loans (2)
    
339,164
      
479,877
      
0
      
479,877
  
Premises and equipment, net
    
8,307
      
13,970
      
0
      
13,970
  
Accrued interest and fees receivable
    
2,712
      
1,130
      
0
      
1,130
  
Other assets
    
19,303
      
14,109
      
0
      
14,109
  
Core deposit intangibles
    
2,928
      
3,573
      
0
      
3,573
  
Other intangibles
    
1,196
      
0
      
1,650
      
1,650
  
Deposits
    
(516,269
)
    
(568,161
)
    
0
      
(568,161
)
Other liabilities
    
(6,436
)
    
(2,922
)
    
0
      
(2,922
)
Other Federal Home Loan Bank borrowings
    
(6,000
)
    
(2,420
)
    
0
      
(2,420
)
Subordinated notes payable
    
0
      
(13,831
)
    
0
      
(13,831
)
Subordinated debt held by unconsolidated subsidiary trusts
    
(2,062
)
    
(2,062
)
    
0
      
(2,062
)
Total identifiable assets, net
    
79,313
      
53,414
      
1,650
      
55,064
  
Goodwill
  
$
19,242
    
$
39,970
    
$
0
    
$
39,970
  

(1) Includes amounts related to both acquisitions completed by CISI in 2019.
(2) Acquisition-related allowance for credit losses on purchased credit deteriorated (“PCD”) loans applicable beginning in 2020.
Loans Acquired
The Company has acquired loans from Steuben for which there was evidence of a more than insignificant deterioration in credit quality since origination.  There were no investment securities acquired from Steuben for which there was evidence of a more than insignificant deterioration in credit quality since origination. The carrying amount of those loans is as follows at the date of acquisition:

(000s omitted)
  
PCD Loans
  
Par value of PCD loans at acquisition
  
$
24,198
  
Allowance for credit losses at acquisition
    
(528
)
Non-credit discount at acquisition
    
(80
)
Fair value of PCD loans at acquisition
  
$
23,590
  

The following is a summary of the remaining loans acquired from Steuben for which there was no evidence of a more-than-insignificant deterioration in credit quality since origination at the date of acquisition:

(000s omitted)
  
Non-PCD
Loans
  
Contractually required principal and interest at acquisition
  
$
416,446
  
Contractual cash flows not expected to be collected
    
(3,177
)
Expected cash flows at acquisition
    
413,269
  
Interest component of expected cash flows
    
(97,695
)
Fair value of non-PCD loans at acquisition
  
$
315,574
  


The following is a summary of the loans acquired from Kinderhook at the date of acquisition:

(000s omitted)
  
Acquired
Impaired
Loans
    
Acquired
Non-impaired
Loans
    
Total
Acquired
Loans
  
Contractually required principal and interest at acquisition
  
$
13,350
    
$
636,384
    
$
649,734
  
Contractual cash flows not expected to be collected
    
(4,176
)
    
(5,472
)
    
(9,648
)
Expected cash flows at acquisition
    
9,174
      
630,912
      
640,086
  
Interest component of expected cash flows
    
(551
)
    
(159,658
)
    
(160,209
)
Fair value of acquired loans
  
$
8,623
    
$
471,254
    
$
479,877
  
Pro Forma Financial Information
The pro forma information set forth below reflects the historical results of Steuben combined with the Company’s consolidated statements of income with adjustments related to (a) certain purchase accounting fair value adjustments and (b) amortization of customer lists and core deposit intangibles.  Acquisition-related expenses totaling $3.3 million and $3.6 million for the three and six months ended June 30, 2020 related to Steuben were included in the pro forma information as if they were incurred in the first quarter of 2019.

  
Pro Forma (Unaudited)
Three Months Ended
    
Pro Forma (Unaudited)
Six Months Ended
  
(000’s omitted)
  
June 30, 2020
    
June 30, 2019
    
June 30, 2020
    
June 30, 2019
  
Total revenue, net of interest expense
  
$
149,576
    
$
154,878
    
$
304,088
    
$
303,152
  
Net income
    
39,072
      
46,447
      
80,848
      
86,774