FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2023

FAIR VALUE

Schedule of fair value measured on a recurring basis

	September 30, 2023
							Total Fair
(000’s omitted)	Level 1		Level 2		Level 3		Value
Available-for-sale investment securities:
U.S. Treasury and agency securities	$	1,921,264	$	58,175	$	0	$	1,979,439
Obligations of state and political subdivisions		0		434,465		0		434,465
Government agency mortgage-backed securities		0		337,071		0		337,071
Corporate debt securities		0		7,174		0		7,174
Government agency collateralized mortgage obligations		0		9,487		0		9,487
Total available-for-sale investment securities		1,921,264		846,372		0		2,767,636
Equity securities		320		0		0		320
Mortgage loans held for sale		0		604		0		604
Commitments to originate real estate loans for sale		0		0		13		13
Forward sales commitments		0		10		0		10
Total	$	1,921,584	$	846,986	$	13	$	2,768,583

	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

	September 30, 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
Individually assessed loans	$	0	$	0	$	3,014	$	3,014	$	0	$	0	$	0	$	0
Other real estate owned		0		0		578		578		0		0		503		503
Mortgage servicing rights		0		0		309		309		0		0		1,169		1,169
Contingent consideration		0		0		(2,950)		(2,950)		0		0		(2,800)		(2,800)
Total	$	0	$	0	$	951	$	951	$	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)	September 30, 2023		Valuation Technique	Significant Unobservable Inputs	(Weighted Average)
Individually assessed loans	$	3,014	Fair value of collateral	Estimated cost of disposal/market adjustment		27.2	%
Other real estate owned		578	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% – 73.8% (38.5%)
Commitments to originate real estate loans for sale		13	Discounted cash flow	Embedded servicing value		1.0	%
Mortgage servicing rights		309	Discounted cash flow	Weighted average constant prepayment rate		5.6% - 6.1% (5.6%)
				Weighted average discount rate		5.3% - 5.7% (5.7%)
				Adequate compensation	$	7/loan
Contingent consideration		(2,950)	Discounted cash flow	Discount rate		6.7% - 6.9% (6.9%)
				Probability of achievement		37.8% - 100.0% (70.9%)

					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 of achievement		44.9% - 53.5% (50.1%)

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

	September 30, 2023				December 31, 2022
	Carrying		Fair		Carrying		Fair
(000’s omitted)	Value		Value		Value		Value
Financial assets:
Net loans	$	9,385,121	$	8,836,726	$	8,748,335	$	8,696,185
Held-to-maturity securities		1,125,540		990,660		1,079,695		1,034,795
Financial liabilities:
Deposits		13,030,788		12,997,731		13,012,308		12,981,487
Overnight borrowings		0		0		768,400		768,400
Securities sold under agreement to repurchase, short-term		330,252		330,252		346,652		346,652
Other Federal Home Loan Bank borrowings		316,837		313,111		19,474		19,377
Subordinated notes payable		0		0		3,249		3,249