ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2021

ACQUISITIONS

Schedule of 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:

		2021								2020	2019
(000s omitted)		TGA	FBD		NuVantage		Total			Steuben	Total (1)
Consideration:
Cash	$	11,620	$	15,350	$	2,900	$	29,870	$	21,613	$	95,034
Community Bank System, Inc. common stock		0		0		0		0		76,942		0
Contingent consideration		1,500		1,400		0		2,900		0		0
Total net consideration		13,120		16,750		2,900		32,770		98,555		95,034
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		0		541		0		541		55,973		90,381
Investment securities		0		0		0		0		180,497		39,770
Loans, net of allowance for credit losses on PCD loans (2)		0		0		0		0		339,017		479,877
Premises and equipment, net		279		282		199		760		7,764		13,970
Accrued interest and fees receivable		0		0		0		0		2,701		1,130
Other assets		0		579		0		579		17,675		14,109
Core deposit intangibles		0		0		0		0		2,928		3,573
Other intangibles		10,900		14,000		1,437		26,337		1,196		1,650
Deposits		0		0		0		0		(516,274)		(568,161)
Other liabilities		(229)		(698)		(174)		(1,101)		(4,841)		(2,922)
Other Federal Home Loan Bank borrowings		0		0		0		0		(6,000)		(2,420)
Subordinated notes payable		0		0		0		0		0		(13,831)
Subordinated debt held by unconsolidated subsidiary trusts		0		0		0		0		(2,062)		(2,062)
Total identifiable assets, net		10,950		14,704		1,462		27,116		78,574		55,064
Goodwill	$	2,170	$	2,046	$	1,438	$	5,654	$	19,981	$	39,970

(1) Includes amounts related to the Kinderhook and both CISI acquisitions completed in 2019.

(2) Acquisition-related allowance for credit losses on purchased credit deteriorated ("PCD") loans applicable beginning in 2020.

Schedule of loans acquired

(000s omitted)	PCD Loans
Par value of PCD loans at acquisition	$	35,906
Allowance for credit losses at acquisition		(668)
Non-credit premium at acquisition		103
Fair value of PCD loans at acquisition	$	35,341

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	$	400,738
Contractual cash flows not expected to be collected		(2,994)
Expected cash flows at acquisition		397,744
Interest component of expected cash flows		(94,068)
Fair value of non-PCD loans at acquisition	$	303,676

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

	Acquired		Acquired		Total
	Impaired		Non-impaired		Acquired
(000s omitted)	Loans		Loans		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

The fair value of the Company’s common stock issued for the Steuben acquisition was determined using the market close price of the stock on June 12, 2020.

Schedule of pro forma financial information

	Pro Forma (Unaudited)
	Year Ended December 31,
(000s omitted)	2020		2019
Total revenue, net of interest expense	$	607,382	$	626,229
Net income		171,147		180,237