FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2023

FAIR VALUE

Schedule of fair value measured on a recurring basis

	March 31, 2023
							Total Fair
(000’s omitted)	Level 1		Level 2		Level 3		Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	2,511,088	$	65,903	$	0	$	2,576,991
Obligations of state and political subdivisions		0		509,869		0		509,869
Government agency mortgage-backed securities		0		380,458		0		380,458
Corporate debt securities		0		7,190		0		7,190
Government agency collateralized mortgage obligations		0		11,485		0		11,485
Total available-for-sale investment securities		2,511,088		974,905		0		3,485,993
Equity securities		419		0		0		419
Mortgage loans held for sale		0		275		0		275
Commitments to originate real estate loans for sale		0		0		29		29
Forward sales commitments		0		6		0		6
Total	$	2,511,507	$	975,186	$	29	$	3,486,722

	December 31, 2022
							Total Fair
(000’s omitted)	Level 1		Level 2		Level 3		Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	3,178,189	$	65,348	$	0	$	3,243,537
Obligations of state and political subdivisions		0		504,297		0		504,297
Government agency mortgage-backed securities		0		384,633		0		384,633
Corporate debt securities		0		7,114		0		7,114
Government agency collateralized mortgage obligations		0		12,270		0		12,270
Total available-for-sale investment securities		3,178,189		973,662		0		4,151,851
Equity securities		419		0		0		419
Commitments to originate real estate loans for sale		0		0		5		5
Forward sales commitments		0		5		0		5
Interest rate swap agreements asset		0		1		0		1
Interest rate swap agreements liability		0		(1)		0		(1)
Total	$	3,178,608	$	973,667	$	5	$	4,152,280

Schedule of assets and liabilities measured on a non-recurring basis

	March 31, 2023								December 31, 2022
							Total Fair								Total Fair
(000’s omitted)	Level 1		Level 2		Level 3		Value		Level 1		Level 2		Level 3		Value
Other real estate owned	$	0	$	0	$	508	$	508	$	0	$	0	$	503	$	503
Mortgage servicing rights		0		0		983		983		0		0		1,169		1,169
Contingent consideration		0		0		(2,800)		(2,800)		0		0		(2,800)		(2,800)
Total	$	0	$	0	$	(1,309)	$	(1,309)	$	0	$	0	$	(1,128)	$	(1,128)

Schedule of significant unobservable inputs, fair value valuation techniques

					Significant Unobservable
	Fair Value at				Input Range
(000’s omitted, except per loan data)	March 31, 2023		Valuation Technique	Significant Unobservable Inputs	(Weighted Average)
Other real estate owned	$	508	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 72.8% (31.4%)
Commitments to originate real estate loans for sale		29	Discounted cash flow	Embedded servicing value		1.0	%
Mortgage servicing rights		983	Discounted cash flow	Weighted average constant prepayment rate		3.3% - 3.9% (3.3%)
				Weighted average discount rate		4.2% - 4.6% (4.6%)
				Adequate compensation	$	7/loan
Contingent consideration		(2,800)	Discounted cash flow	Discount rate		5.9% - 6.2% (6.1%)
				Probability adjusted level of retained revenue		$3.1 million - $5.1 million

					Significant Unobservable
	Fair Value at				Input Range
(000's omitted, except per loan data)	December 31, 2022		Valuation Technique	Significant Unobservable Inputs	(Weighted Average)
Other real estate owned	$	503	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 72.8% (35.7%)
Commitments to originate real estate loans for sale		5	Discounted cash flow	Embedded servicing value		1.0	%
Mortgage servicing rights		1,169	Discounted cash flow	Weighted average constant prepayment rate		2.9% - 3.3% (2.9%)
				Weighted average discount rate		4.6% - 4.9% (4.9%)
				Adequate compensation	$	7/loan
Contingent consideration		(2,800)	Discounted cash flow	Discount rate		5.9% - 6.2% (6.1%)
				Probability adjusted level of retained revenue		$3.1 million - $5.1 million

Schedule of carrying amounts and estimated fair values of other financial instruments

	March 31, 2023				December 31, 2022
	Carrying				Carrying
(000’s omitted)	Value		Fair Value		Value		Fair Value
Financial assets:
Net loans	$	8,919,165	$	8,765,403	$	8,748,335	$	8,696,185
Held-to-maturity securities		1,090,235		1,083,330		1,079,695		1,034,795
Financial liabilities:
Deposits		13,110,672		13,080,256		13,012,308		12,981,487
Overnight borrowings		58,400		58,400		768,400		768,400
Securities sold under agreement to repurchase, short-term		304,607		304,607		346,652		346,652
Other Federal Home Loan Bank borrowings		17,284		17,131		19,474		19,377
Subordinated notes payable		0		0		3,249		3,249