FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2023

FAIR VALUE

Schedule of fair value measured on a recurring basis

	December 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	$	2,019,089	$	61,694	$	0	$	2,080,783
Obligations of state and political subdivisions		0		474,363		0		474,363
Government agency mortgage-backed securities		0		348,526		0		348,526
Corporate debt securities		0		7,394		0		7,394
Government agency collateralized mortgage obligations		0		8,926		0		8,926
Total available-for-sale investment securities		2,019,089		900,903		0		2,919,992
Equity securities		372		0		0		372
Mortgage loans held for sale		0		414		0		414
Commitments to originate real estate loans for sale		0		0		2		2
Forward sales commitments		0		6		0		6
Total	$	2,019,461	$	901,323	$	2	$	2,920,786

	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

	December 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
Individually assessed loans	$	0	$	0	$	3,014	$	3,014	$	0	$	0	$	0	$	0
Other real estate owned		0		0		1,159		1,159		0		0		503		503
Mortgage servicing rights		0		0		162		162		0		0		1,169		1,169
Contingent consideration		0		0		(5,150)		(5,150)		0		0		(2,800)		(2,800)
Total	$	0	$	0	$	(815)	$	(815)	$	0	$	0	$	(1,128)	$	(1,128)

Schedule of significant unobservable inputs, fair value valuation techniques

The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis as of December 31, 2023 are as follows:

				Significant	Significant Unobservable
			Valuation	Unobservable	Input Range
(000’s omitted, except per loan data)	Fair Value		Technique	Inputs	(Weighted Average)
Individually assessed loans	$	3,014	Fair value of collateral	Estimated cost of disposal/market adjustment		27.2	%
Other real estate owned		1,159	Fair value of collateral	Estimated cost of disposal/market adjustment		9.0% - 73.8% (45.8%)
Commitments to originate real estate loans for sale		2	Discounted cash flow	Embedded servicing value		1.0	%
Mortgage servicing rights		162	Discounted cash flow	Weighted average constant prepayment rate		4.2% - 5.1% (4.2%)
				Weighted average discount rate		4.6% - 5.0% (4.9%)
				Adequate compensation		$7/loan
Contingent consideration		(5,150)	Discounted cash flow	Discount rate		6.7% - 6.9% (6.9%)
				Probability of achievement		100	%

The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis as of December 31, 2022 are as follows:

				Significant	Significant Unobservable
			Valuation	Unobservable	Input Range
(000’s omitted, except per loan data)	Fair Value		Technique	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

	December 31, 2023				December 31, 2022
	Carrying				Carrying
(000’s omitted)	Value		Fair Value		Value		Fair Value
Financial assets:
Net loans	$	9,637,929	$	9,293,902	$	8,748,335	$	8,696,185
Held-to-maturity securities		1,172,174		1,121,816		1,079,695		1,034,795
Financial liabilities:
Deposits		12,928,121		12,907,605		13,012,308		12,981,487
Overnight borrowings		53,000		53,000		768,400		768,400
Securities sold under agreement to repurchase, short-term		304,595		304,595		346,652		346,652
Other Federal Home Loan Bank borrowings		407,603		410,385		19,474		19,377
Subordinated notes payable		0		0		3,249		3,249