INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

INCOME TAXES

Schedule of provision for income taxes

The provision for income taxes for the years ended December 31 is as follows:

(000’s omitted)	2022		2021		2020
Current:
Federal	$	41,025	$	35,507	$	35,728
State and other		9,899		8,158		8,008
Deferred:
Federal		1,163		5,493		(2,005)
State and other		146		2,496		(331)
Provision for income taxes	$	52,233	$	51,654	$	41,400

Schedule of net deferred tax liability

Components of the net deferred tax asset, included in other assets, as of December 31, 2022 and of the net deferred tax liability, included in other liabilities, as of December 31, 2021 are as follows:

(000’s omitted)	2022		2021
Investment securities	$	191,953	$	0
Allowance for credit losses		15,346		12,435
Employee benefits		5,775		7,708
Operating lease liabilities		7,552		7,955
Other, net		4,385		1,250
Deferred tax asset		225,011		29,348
Investment securities		0		7,227
Goodwill and intangibles		39,454		41,917
Operating lease right-of-use assets		7,303		7,693
Loan origination costs		9,731		8,993
Depreciation		96		535
Mortgage servicing rights		640		278
Pension		18,154		22,950
Deferred tax liability		75,378		89,593
Net deferred tax asset (liability)	$	149,633	$	(60,245)

Schedule of reconciliation of the differences between the federal statutory income 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:

	2022		2021		2020
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
Increase (reduction) in taxes resulting from:
Tax-exempt interest	(1.3)		(1.1)		(1.5)
State income taxes, net of federal benefit	3.3		3.6		3.0
Stock-based compensation	(0.3)		(0.9)		(0.8)
Federal tax credits	(1.0)		(1.0)		(1.3)
Other, net	0.0		(0.2)		(0.3)
Effective income tax rate	21.7	%	21.4	%	20.1	%