Community Bank System (CBU) 10-Q 9 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Cover [Abstract]
Entity Registrant Name	COMMUNITY BANK SYSTEM, INC.
Entity Central Index Key	0000723188
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		51,595,171
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-13695
Entity Tax Identification Number	16-1213679
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	5790 Widewaters Parkway
Entity Address, City or Town	DeWitt
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	13214
City Area Code	315
Local Phone Number	445‑2282
Title of 12(b) Security	Common Stock, $1.00 par value per share
Trading Symbol	CBU
Security Exchange Name	NYSE

CONSOLIDATED STATEMENTS OF COND

CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Cash and cash equivalents	$ 874,836	$ 211,834
Available-for-sale investment securities (cost of $2,322,697 and $2,952,278, respectively)	2,359,038	2,936,049
Equity and other securities (cost of $42,285 and $44,678, respectively)	43,234	45,609
Loans held for sale, at fair value	0	83
Loans	6,284,070	6,281,121
Allowance for loan losses	(49,310)	(49,284)
Net loans	6,234,760	6,231,837
Goodwill, net	733,503	733,503
Core deposit intangibles, net	15,738	18,596
Other intangibles, net	51,274	55,250
Intangible assets, net	800,515	807,349
Premises and equipment, net	154,592	119,988
Accrued interest and fees receivable	29,202	31,048
Other assets	249,211	223,498
Total assets	10,745,388	10,607,295
Liabilities:
Noninterest-bearing deposits	2,363,408	2,312,816
Interest-bearing deposits	6,124,797	6,009,555
Total deposits	8,488,205	8,322,371
Short-term borrowings	0	54,400
Securities sold under agreement to repurchase, short-term	142,359	259,367
Other long-term debt	1,931	1,976
Subordinated debt held by unconsolidated subsidiary trusts	97,939	97,939
Accrued interest and other liabilities	205,444	157,459
Total liabilities	8,935,878	8,893,512
Commitments and contingencies (See Note K)
Shareholders' equity:
Preferred stock, $1.00 par value, 500,000 shares authorized, 0 shares issued	0	0
Common stock, $1.00 par value, 75,000,000 shares authorized; 51,805,424 and 51,576,839 shares issued, respectively	51,806	51,577
Additional paid-in capital	917,855	911,748
Retained earnings	843,288	795,563
Accumulated other comprehensive loss	(4,621)	(45,305)
Treasury stock, at cost (234,816 shares, including 177,333 shares held by deferred compensation arrangements at June 30, 2019 and 319,015 shares including 207,403 shares held by deferred compensation arrangements at December 31, 2018, respectively)	(8,797)	(11,528)
Deferred compensation arrangements (177,333 and 207,403 shares, respectively)	9,979	11,728
Total shareholders' equity	1,809,510	1,713,783
Total liabilities and shareholders' equity	$ 10,745,388	$ 10,607,295

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Available-for-sale investment securities, cost	$ 2,322,697	$ 2,952,278
Equity and other securities, cost	$ 42,285	$ 44,678
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common stock, shares issued (in shares)	51,805,424	51,576,839
Treasury stock, shares at cost (in shares)	234,816	319,015
Shares held by deferred compensation arrangements (in shares)	177,333	207,403

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest income:
Interest and fees on loans	$ 74,067	$ 71,152	$ 147,770	$ 140,593
Interest and dividends on taxable investments	17,427	16,517	33,514	32,041
Interest on nontaxable investments	2,858	3,336	5,749	6,775
Total interest income	94,352	91,005	187,033	179,409
Interest expense:
Interest on deposits	4,560	2,381	8,667	4,513
Interest on borrowings	429	446	1,050	926
Interest on subordinated debt held by unconsolidated subsidiary trusts	1,063	1,332	2,157	2,500
Total interest expense	6,052	4,159	11,874	7,939
Net interest income	88,300	86,846	175,159	171,470
Provision for loan losses	1,400	2,448	3,822	6,127
Net interest income after provision for loan losses	86,900	84,398	171,337	165,343
Noninterest revenues:
Deposit service fees	15,996	18,964	31,860	38,141
Other banking revenues	1,147	1,163	2,683	2,406
Employee benefit services	23,787	22,542	47,841	45,548
Insurance services	8,329	7,415	16,191	14,774
Wealth management services	6,578	6,496	12,927	13,202
Gain on sale of investment securities, net	4,882	0	4,882	0
Unrealized (loss) gain on equity securities	(13)	(21)	18	(21)
Total noninterest revenues	60,706	56,559	116,402	114,050
Noninterest expenses:
Salaries and employee benefits	54,008	52,402	107,387	104,261
Occupancy and equipment	9,619	9,437	19,907	19,968
Data processing and communications	10,401	10,212	19,800	18,954
Amortization of intangible assets	3,904	4,555	8,034	9,353
Legal and professional fees	2,684	2,745	5,404	5,525
Business development and marketing	3,140	2,654	5,928	4,714
Acquisition expenses	1,194	71	1,728	63
Other expenses	6,226	4,036	11,640	9,605
Total noninterest expenses	91,176	86,112	179,828	172,443
Income before income taxes	56,430	54,845	107,911	106,950
Income taxes	11,415	10,239	20,950	22,238
Net income	$ 45,015	$ 44,606	$ 86,961	$ 84,712
Basic earnings per share (in dollars per share)	$ 0.87	$ 0.87	$ 1.68	$ 1.65
Diluted earnings per share (in dollars per share)	$ 0.86	$ 0.86	$ 1.66	$ 1.63

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Pension and other post retirement obligations:
Amortization of actuarial losses included in net periodic pension cost, gross	$ 652	$ 303	$ 1,303	$ 606
Tax effect	(160)	(74)	(319)	(147)
Amortization of actuarial losses included in net periodic pension cost, net	492	229	984	459
Amortization of prior service cost included in net periodic pension cost, gross	(29)	(127)	(58)	(254)
Tax effect	8	31	15	62
Amortization of prior service cost included in net periodic pension cost, net	(21)	(96)	(43)	(192)
Other comprehensive income related to pension and other post-retirement obligations, net of taxes	471	133	941	267
Unrealized gains (losses) on available-for-sale securities:
Net unrealized holding gains (losses) arising during period, gross	33,547	(14,816)	57,452	(56,632)
Tax effect	(8,189)	3,625	(14,021)	13,781
Net unrealized holding gains (losses) arising during period, net	25,358	(11,191)	43,431	(42,851)
Reclassification adjustment for net gains included in net income, gross	(4,882)	0	(4,882)	0
Tax effect	1,194	0	1,194	0
Reclassification adjustment for net gains included in net income, net	(3,688)	0	(3,688)	0
Reclassification of other comprehensive income due to change in accounting principle - equity securities	0	(208)	0	(208)
Other comprehensive income/(loss) related to unrealized gains (losses) on available-for-sale securities, net of taxes	21,670	(11,399)	39,743	(43,059)
Other comprehensive income (loss), net of tax	22,141	(11,266)	40,684	(42,792)
Net income	45,015	44,606	86,961	84,712
Comprehensive income	67,156	$ 33,340	127,645	$ 41,920
Accumulated Other Comprehensive Income By Component:
Unrealized (loss) for pension and other post-retirement obligations	(42,252)		(42,252)		$ (43,497)
Tax effect	10,356		10,356		10,660
Net unrealized (loss) for pension and other post-retirement obligations	(31,896)		(31,896)		(32,837)
Unrealized gain (loss) on available-for-sale securities	36,341		36,341		(16,229)
Tax effect	(9,066)		(9,066)		3,969
Reclassification of other comprehensive income due to change in accounting principle - equity securities	0		0		(208)
Net unrealized gain (loss) on available-for-sale securities	27,275		27,275		(12,468)
Accumulated other comprehensive (loss)	$ (4,621)		$ (4,621)		$ (45,305)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock Shares Outstanding [Member]	Common Stock Amount Issued [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) [Member]	Treasury Stock [Member]	Deferred Compensation Arrangements [Member]	Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principle - equity securities				$ 208	$ (208)			$ 0
Balance at Dec. 31, 2017		$ 51,264	$ 894,879	700,557	(3,699)	$ (21,014)	$ 13,328	1,635,315
Balance (in shares) at Dec. 31, 2017	50,696,077
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				84,712				84,712
Other comprehensive income (loss), net of tax					(42,584)			(42,584)
Cash dividends declared:
Common				(34,698)				(34,698)
Common stock activity under employee stock ownership plan		248	4,396					4,644
Common stock activity under employee stock ownership plan (in shares)	248,151
Stock-based compensation			3,396					3,396
Distribution of stock under deferred compensation arrangements						1,898	(1,898)	0
Distribution of stock under deferred compensation arrangements (in shares)	35,233
Treasury stock issued to benefit plans, net			2,242			3,782	150	6,174
Treasury stock issued to benefit plans, net (in shares)	106,413
Balance at Jun. 30, 2018		51,512	904,913	750,779	(46,491)	(15,334)	11,580	1,656,959
Balance (in shares) at Jun. 30, 2018	51,085,874
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principle - equity securities				208	(208)			0
Balance at Mar. 31, 2018		51,374	898,036	723,404	(35,226)	(17,633)	11,511	1,631,466
Balance (in shares) at Mar. 31, 2018	50,883,603
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				44,606				44,606
Other comprehensive income (loss), net of tax					(11,057)			(11,057)
Cash dividends declared:
Common				(17,439)				(17,439)
Common stock activity under employee stock ownership plan		138	3,936					4,074
Common stock activity under employee stock ownership plan (in shares)	137,738
Stock-based compensation			1,681					1,681
Treasury stock issued to benefit plans, net			1,260			2,299	69	3,628
Treasury stock issued to benefit plans, net (in shares)	64,533
Balance at Jun. 30, 2018		51,512	904,913	750,779	(46,491)	(15,334)	11,580	1,656,959
Balance (in shares) at Jun. 30, 2018	51,085,874
Balance at Dec. 31, 2018		51,577	911,748	795,563	(45,305)	(11,528)	11,728	1,713,783
Balance (in shares) at Dec. 31, 2018	51,257,824
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				86,961				86,961
Other comprehensive income (loss), net of tax					40,684			40,684
Cash dividends declared:
Common				(39,236)				(39,236)
Common stock activity under employee stock ownership plan		229	992					1,221
Common stock activity under employee stock ownership plan (in shares)	228,585
Stock-based compensation			2,757					2,757
Distribution of stock under deferred compensation arrangements			1,064			830	(1,894)	0
Distribution of stock under deferred compensation arrangements (in shares)	32,431
Treasury stock issued to benefit plans, net			1,294			1,901	145	3,340
Treasury stock issued to benefit plans, net (in shares)	51,768
Balance at Jun. 30, 2019		51,806	917,855	843,288	(4,621)	(8,797)	9,979	1,809,510
Balance (in shares) at Jun. 30, 2019	51,570,608
Balance at Mar. 31, 2019		51,728	913,917	817,933	(26,762)	(9,601)	9,913	1,757,128
Balance (in shares) at Mar. 31, 2019	51,471,371
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				45,015				45,015
Other comprehensive income (loss), net of tax					22,141			22,141
Cash dividends declared:
Common				(19,660)				(19,660)
Common stock activity under employee stock ownership plan		78	1,987					2,065
Common stock activity under employee stock ownership plan (in shares)	77,666
Stock-based compensation			1,366					1,366
Treasury stock issued to benefit plans, net			585			804	66	1,455
Treasury stock issued to benefit plans, net (in shares)	21,571
Balance at Jun. 30, 2019		$ 51,806	$ 917,855	$ 843,288	$ (4,621)	$ (8,797)	$ 9,979	$ 1,809,510
Balance (in shares) at Jun. 30, 2019	51,570,608

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash dividends declared:
Dividends declared per common share (in dollars per share)	$ 0.38	$ 0.34	$ 0.76	$ 0.68

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating activities:
Net income	$ 86,961	$ 84,712
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	7,680	7,959
Amortization of intangible assets	8,034	9,353
Net accretion on securities, loans and borrowings	(3,462)	(4,784)
Stock-based compensation	2,757	3,396
Provision for loan losses	3,822	6,127
Amortization of mortgage servicing rights	188	229
Gain on sale of investment securities, net	(4,882)	0
Unrealized (gain) loss on equity securities	(18)	21
Income from bank-owned life insurance policies	(769)	(784)
Net loss (gain) on sale of loans and other assets	19	(146)
Change in other assets and other liabilities	(10,406)	6,734
Net cash provided by operating activities	89,924	112,817
Investing activities:
Proceeds from sales of available-for-sale investment securities	590,179	0
Proceeds from maturities, calls, and paydowns of available-for-sale investment securities	99,105	69,637
Proceeds from maturities and redemptions of equity and other investment securities	2,537	7,408
Purchases of available-for-sale investment securities	(60,826)	(31,669)
Purchases of equity and other securities	(144)	(21)
Net (increase) decrease in loans	(8,457)	13,647
Cash paid for acquisitions, net of cash acquired of $0 and $16, respectively	(1,200)	(1,737)
Purchases of premises and equipment, net	(3,963)	(5,298)
Real estate limited partnership investments	(564)	(1,197)
Net cash provided by investing activities	616,667	50,770
Financing activities:
Net increase in deposits	165,834	69,573
Net decrease in borrowings	(171,453)	(179,297)
Issuance of common stock	1,221	4,644
Purchases of treasury stock	(145)	(150)
Sales of treasury stock	3,340	6,174
Increase in deferred compensation arrangements	145	150
Cash dividends paid	(39,381)	(34,611)
Withholding taxes paid on share-based compensation	(3,150)	(954)
Net cash used in financing activities	(43,589)	(134,471)
Change in cash and cash equivalents	663,002	29,116
Cash and cash equivalents at beginning of period	211,834	221,038
Cash and cash equivalents at end of period	874,836	250,154
Supplemental disclosures of cash flow information:
Cash paid for interest	11,725	7,896
Cash paid for income taxes	21,775	12,681
Supplemental disclosures of noncash financing and investing activities:
Dividends declared and unpaid	19,663	17,547
Transfers from loans to other real estate	1,179	1,845
Acquisitions:
Fair value of assets acquired, excluding acquired cash and intangibles	0	115
Fair value of liabilities assumed	$ 0	$ 31

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Investing activities:
Cash acquired from acquisition	$ 0	$ 16

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	NOTE A: BASIS OF PRESENTATION The interim financial data as of and for the three and six months ended June 30, 2019 is unaudited; however, in the opinion of Community Bank System, Inc. (the “Company”), the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2019
ACQUISITIONS [Abstract]
ACQUISITIONS	NOTE B: ACQUISITIONS Subsequent Event – Kinderhook Bank Corp. On July 12, 2019, the Company completed its merger with Kinderhook Bank Corp. (“Kinderhook”), parent company of The National Union Bank of Kinderhook headquartered in Kinderhook, New York, for approximately $93.4 million in cash. The merger added 11 branch locations across a five county area in the Capital District of Upstate New York. The Company expects to incur certain one-time, transaction-related costs in 2019. The initial accounting for the assets and liabilities assumed with this acquisition is incomplete as of the date of issuance of the consolidated financial statements due to the proximity of the acquisition date to the date of issuance. On January 2, 2019, the Company, through its subsidiary, Community Investment Services, Inc. (“CISI”), completed its acquisition of certain assets of Wealth Resources Network, Inc. (“Wealth Resources”), a financial services business headquartered in Liverpool, New York. The Company paid $1.2 million in cash to acquire a customer list from Wealth Resources, and recorded a $1.2 million customer list intangible asset in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. On April 2, 2018, the Company, through its subsidiary, Benefit Plans Administrative Services, Inc. (“BPAS”), acquired certain assets of HR Consultants (SA), LLC (“HR Consultants”), a provider of actuarial and benefit consulting services headquartered in Puerto Rico. The Company paid $0.3 million in cash to acquire the assets of HR Consultants and recorded intangible assets of $0.3 million in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. On January 2, 2018, the Company, through its subsidiary, OneGroup NY, Inc. (“OneGroup”), completed its acquisition of certain assets of Penna & Associates Agency, Inc. (“Penna”), an insurance agency headquartered in Johnson City, New York. The Company paid $0.8 million in cash to acquire the assets of Penna, and recorded goodwill in the amount of $0.3 million and a customer list intangible asset of $0.3 million in conjunction with the acquisition. The effects of the acquired assets and liabilities have been included in the consolidated financial statements since that date. On January 2, 2018, the Company, through its subsidiary, CISI, completed its acquisition of certain assets of Styles Bridges Associates (“Styles Bridges”), a financial services business headquartered in Canton, New York. The Company paid $0.7 million in cash to acquire a customer list from Styles Bridges, and recorded a $0.7 million customer list intangible asset in conjunction with the acquisition. The effects of the acquired assets have been included in the consolidated financial statements since that date. The assets and liabilities assumed in the acquisitions were recorded at their estimated fair values based on management's best estimates using information available at the dates of the acquisitions, and were subject to adjustment based on updated information not available at the time of the acquisitions. 2019 2018 (000s omitted) Wealth Resources Other (1) Consideration paid : Cash $ 1,200 $ 1,753 Total net consideration paid $ 1,200 $ 1,753 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 0 16 Premises and equipment 0 10 Other assets 0 105 Other intangibles 1,200 1,343 Other liabilities 0 (31 ) Total identifiable assets, net 1,200 1,443 Goodwill $ 0 $ 310 (1) The other intangibles related to the Wealth Resources, Styles Bridges, Penna, and HR Consultants acquisitions are being amortized using an accelerated method over their estimated useful life of eight years. The goodwill, which is not amortized for book purposes, was assigned to the All Other segment for the Penna acquisition. Goodwill arising from the Penna acquisition is deductible for tax purposes. Direct costs related to the acquisitions were expensed as incurred. Merger and acquisition integration-related expenses amount to $1.2 million and $1.7 million during the three and six months ended June 30, 2019 and have been separately stated in the Consolidated Statements of Income. Merger and acquisition integration-related expenses for the three and six months ended June 30, 2018 were immaterial.

ACCOUNTING POLICIES

ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2019
ACCOUNTING POLICIES [Abstract]
ACCOUNTING POLICIES	NOTE C: ACCOUNTING POLICIES The accounting policies of the Company, as applied in the consolidated interim financial statements presented herein, are substantially the same as those followed on an annual basis as presented on pages 65 through 75 of the Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission (“SEC”) on March 1, 2019 except as noted below. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2019, $27.7 million of accounts receivable, including $8.1 million of unbilled fee revenue, and $2.6 million of unearned revenue was recorded in the consolidated statements of condition. As of December 31, 2018, $26.4 million of accounts receivable, including $7.8 million of unbilled fee revenue, and $2.2 million of unearned revenue was recorded in the consolidated statements of condition. Leases The Company occupies certain offices and uses certain equipment under non-cancelable operating lease agreements. The Company determines if an arrangement is a lease at inception. The right-of-use assets associated with operating leases are recorded in premises and equipment in the Company’s consolidated statements of condition. The lease liabilities associated with operating leases are included in accrued interest and other liabilities in the Company’s consolidated statements of condition. Right-of-use assets represent the Company’s right to use the underlying assets for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the associated leases. Operating lease right-of-use assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company uses interest rates on advances from the Federal Home Loan Bank of New York available at the time of commencement to determine the present value of lease payments. The operating lease right-of-use assets include any lease payments made at the time of commencement and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term and is included in occupancy and equipment expense in the Company’s consolidated statements of income. Derivative Financial Instruments and Hedging Activities The Company accounts for derivative financial instruments at fair value. If certain conditions are met, a derivative may be specifically designated as (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (“fair value hedge”), (2) a hedge of the exposure to variable cash flows of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest revenues. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest revenues. Cash flows on hedges are classified in the consolidated statement of cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking the fair value or cash flow hedges to specific assets and liabilities on the statement of condition or to specific commitments or forecasted transactions. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded in noninterest revenues. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued, but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Topic 840, Leases In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350)

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2019
INVESTMENT SECURITIES [Abstract]
INVESTMENT SECURITIES	NOTE D: INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 (000's omitted) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Portfolio: U.S. Treasury and agency securities $ 1,435,302 $ 22,204 $ 428 $ 1,457,078 $ 2,036,474 $ 2,190 $ 14,911 $ 2,023,753 Obligations of state and political subdivisions 427,621 12,076 0 439,697 453,640 6,563 1,049 459,154 Government agency mortgage-backed securities 395,220 4,196 2,221 397,195 390,234 1,526 9,283 382,477 Corporate debt securities 2,558 0 4 2,554 2,588 0 42 2,546 Government agency collateralized mortgage obligations 61,996 586 68 62,514 69,342 60 1,283 68,119 Total available-for-sale portfolio $ 2,322,697 $ 39,062 $ 2,721 $ 2,359,038 $ 2,952,278 $ 10,339 $ 26,568 $ 2,936,049 Equity and other Securities: Equity securities, at fair value $ 251 $ 199 $ 0 $ 450 $ 251 $ 200 $ 19 $ 432 Federal Home Loan Bank common stock 6,251 0 0 6,251 8,768 0 0 8,768 Federal Reserve Bank common stock 30,690 0 0 30,690 30,690 0 0 30,690 Other equity securities, at adjusted cost 5,093 750 0 5,843 4,969 750 0 5,719 Total equity and other securities $ 42,285 $ 949 $ 0 $ 43,234 $ 44,678 $ 950 $ 19 $ 45,609 As of June 30, 2019 Less than 12 Months 12 Months or Longer Total (000's omitted) # Fair Value Gross Unrealized Losses # Fair Value Gross Unrealized Losses # Fair Value Gross Unrealized Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 0 $ 0 $ 0 19 $ 188,692 $ 428 19 $ 188,692 $ 428 Obligations of state and political subdivisions 0 0 0 1 516 0 1 516 0 Government agency mortgage-backed securities 6 4,551 6 142 192,786 2,215 148 197,337 2,221 Corporate debt securities 0 0 0 1 2,554 4 1 2,554 4 Government agency collateralized mortgage obligations 0 0 0 13 18,233 68 13 18,233 68 Total available-for-sale investment portfolio 6 $ 4,551 $ 6 176 $ 402,781 $ 2,715 182 $ 407,332 $ 2,721 As of December 31, 2018 Less than 12 Months 12 Months or Longer Total (000's omitted) # Fair Value Gross Unrealized Losses # Fair Value Gross Unrealized Losses # Fair Value Gross Unrealized Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 7 $ 473,082 $ 682 64 $ 1,213,276 $ 14,229 71 $ 1,686,358 $ 14,911 Obligations of state and political subdivisions 118 55,671 216 97 51,753 833 215 107,424 1,049 Government agency mortgage-backed securities 43 47,708 258 181 253,931 9,025 224 301,639 9,283 Corporate debt securities 0 0 0 1 2,546 42 1 2,546 42 Government agency collateralized mortgage obligations 1 66 0 41 63,112 1,283 42 63,178 1,283 Total available-for-sale investment portfolio 169 $ 576,527 $ 1,156 384 $ 1,584,618 $ 25,412 553 $ 2,161,145 $ 26,568 Equity and other Securities: Equity securities, at fair value 1 $ 82 $ 19 0 $ 0 $ 0 1 $ 82 $ 19 Total equity and other securities 1 $ 82 $ 19 0 $ 0 $ 0 1 $ 82 $ 19 The unrealized losses reported pertaining to securities issued by the U.S. government and its sponsored entities, include treasuries, agencies, and mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, which are currently rated AAA by Moody’s Investor Services, AA+ by Standard & Poor’s and are guaranteed by the U.S. government. The majority of the obligations of state and political subdivisions and corporations carry a credit rating of A or better. Additionally, a majority of the obligations of state and political subdivisions carry a secondary level of credit enhancement. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost. The unrealized losses in the portfolios are primarily attributable to changes in interest rates. As such, management does not believe any individual unrealized loss as of June 30, 2019 represents other-than-temporary impairment. Available-for-Sale (000's omitted) Amortized Cost Fair Value Due in one year or less $ 76,679 $ 76,659 Due after one through five years 1,489,433 1,513,356 Due after five years through ten years 143,339 147,980 Due after ten years 156,030 161,334 Subtotal 1,865,481 1,899,329 Government agency mortgage-backed securities 395,220 397,195 Government agency collateralized mortgage obligations 61,996 62,514 Total $ 2,322,697 $ 2,359,038 As of June 30, 2019, $149.9 million of U.S. Treasury securities were pledged as collateral for securities sold under agreement to repurchase. All securities sold under agreement to repurchase as of June 30, 2019 have an overnight and continuous maturity. During the three-month period ending June 30, 2019, the Company sold $ million of U.S. Treasury and agency securities, recognizing $ million of gross realized gains and $ million of gross realized losses. The proceeds from these sales were primarily held in interest-earning cash and cash equivalents at higher net yields as of June 30, 2019.

LOANS

LOANS	6 Months Ended
	Jun. 30, 2019
LOANS [Abstract]
LOANS	NOTE E: LOANS The segments of the Company’s loan portfolio are disaggregated into the following classes that allow management to monitor risk and performance: • Consumer mortgages consist primarily of fixed rate residential instruments, typically 10 – 30 years in contractual term, secured by first liens on real property. • Business lending is comprised of general purpose commercial and industrial loans including, but not limited to, municipal lending, agricultural-related and dealer floor plans, as well as mortgages on commercial properties. • Consumer indirect consists primarily of installment loans originated through selected dealerships and are secured by automobiles, marine and other recreational vehicles. • Consumer direct consists of all other loans to consumers such as personal installment loans and lines of credit. • Home equity products are consumer purpose installment loans or lines of credit most often secured by a first or second lien position on residential real estate with terms up to 30 years. The balances of these classes are summarized as follows: (000's omitted) June 30, 2019 December 31, 2018 Business lending $ 2,395,684 $ 2,396,977 Consumer mortgage 2,255,782 2,235,408 Consumer indirect 1,082,834 1,083,207 Consumer direct 178,151 178,820 Home equity 371,619 386,709 Gross loans, including deferred origination costs 6,284,070 6,281,121 Allowance for loan losses (49,310 ) (49,284 ) Loans, net of allowance for loan losses $ 6,234,760 $ 6,231,837 The outstanding balance related to credit impaired acquired loans was $5.6 million and $7.4 million at June 30, 2019 and December 31, 2018, respectively. The changes in the accretable discount related to the credit impaired acquired loans are as follows: (000’s omitted) Balance at December 31, 2018 $ 437 Accretion recognized, year-to-date (133 ) Net reclassification between accretable and non-accretable 76 Balance at June 30, 2019 $ 380 Management monitors the credit quality of its loan portfolio on an ongoing basis. Measurement of delinquency and past due status are based on the contractual terms of each loan. Past due loans are reviewed on a monthly basis to identify loans for non-accrual status. The following is an aged analysis of the Company’s past due loans, by class as of June 30, 2019: Legacy Loans (excludes loans acquired after January 1, 2009) (000’s omitted) Past Due 30 – 89 Days 90+ Days Past Due and Still Accruing Nonaccrual Total Past Due Current Total Loans Business lending $ 4,258 $ 491 $ 4,086 $ 8,835 $ 1,669,769 $ 1,678,604 Consumer mortgage 9,675 2,082 10,079 21,836 1,875,811 1,897,647 Consumer indirect 10,973 157 0 11,130 1,063,817 1,074,947 Consumer direct 1,117 27 0 1,144 174,732 175,876 Home equity 1,133 106 1,364 2,603 303,102 305,705 Total $ 27,156 $ 2,863 $ 15,529 $ 45,548 $ 5,087,231 $ 5,132,779 Acquired Loans (000’s omitted) Past Due 30 – 89 Days 90+ Days Past Due and Still Accruing Nonaccrual Total Past Due Acquired Impaired (1) Current Total Loans Business lending $ 1,019 $ 0 $ 3,294 $ 4,313 $ 3,647 $ 709,120 $ 717,080 Consumer mortgage 1,282 80 2,072 3,434 0 354,701 358,135 Consumer indirect 33 32 0 65 0 7,822 7,887 Consumer direct 40 4 0 44 0 2,231 2,275 Home equity 726 68 518 1,312 0 64,602 65,914 Total $ 3,100 $ 184 $ 5,884 $ 9,168 $ 3,647 $ 1,138,476 $ 1,151,291 (1) Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans. The following is an aged analysis of the Company’s past due loans by class as of December 31, 2018: Legacy Loans (000’s omitted) Past Due 30 – 89 Days 90+ Days Past Due and Still Accruing Nonaccrual Total Past Due Current Total Loans Business lending $ 5,261 $ 179 $ 4,872 $ 10,312 $ 1,608,515 $ 1,618,827 Consumer mortgage 12,468 1,393 9,872 23,733 1,824,717 1,848,450 Consumer indirect 14,609 258 0 14,867 1,057,525 1,072,392 Consumer direct 1,778 48 0 1,826 173,948 175,774 Home equity 983 228 1,438 2,649 309,892 312,541 Total $ 35,099 $ 2,106 $ 16,182 $ 53,387 $ 4,974,597 $ 5,027,984 Acquired Loans (000’s omitted) Past Due 30 – 89 Days 90+ Days Past Due and Still Accruing Nonaccrual Total Past Due Acquired Impaired (1) Current Total Loans Business lending $ 974 $ 0 $ 3,498 $ 4,472 $ 5,446 $ 768,232 $ 778,150 Consumer mortgage 841 232 2,390 3,463 0 383,495 386,958 Consumer indirect 78 34 0 112 0 10,703 10,815 Consumer direct 115 4 0 119 0 2,927 3,046 Home equity 613 79 474 1,166 0 73,002 74,168 Total $ 2,621 $ 349 $ 6,362 $ 9,332 $ 5,446 $ 1,238,359 $ 1,253,137 (1) Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans. Pass The condition of the borrower and the performance of the loans are satisfactory or better. Special Mention The condition of the borrower has deteriorated although the loan performs as agreed. Classified The condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate, if deficiencies are not corrected. Doubtful The condition of the borrower has deteriorated to the point that collection of the balance is improbable based on current facts and conditions. The following table shows the amount of business lending loans by credit quality category: June 30, 2019 December 31, 2018 (000’s omitted) Legacy Acquired Total Legacy Acquired Total Pass $ 1,510,549 $ 626,321 $ 2,136,870 $ 1,439,337 $ 702,493 $ 2,141,830 Special mention 87,398 58,444 145,842 105,065 40,107 145,172 Classified 80,657 28,668 109,325 74,425 28,525 102,950 Doubtful 0 0 0 0 1,579 1,579 Acquired impaired 0 3,647 3,647 0 5,446 5,446 Total $ 1,678,604 $ 717,080 $ 2,395,684 $ 1,618,827 $ 778,150 $ 2,396,977 All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis. These are typically loans to individuals in the consumer categories and are delineated as either performing or nonperforming. Performing loans include loans classified as current as well as those classified as 30 - 89 days past due. Nonperforming loans include 90+ days past due and still accruing and nonaccrual loans. The following table details the balances in all other loan categories at June 30, 2019: Legacy Loans (000’s omitted) Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Total Performing $ 1,885,486 $ 1,074,790 $ 175,849 $ 304,235 $ 3,440,360 Nonperforming 12,161 157 27 1,470 13,815 Total $ 1,897,647 $ 1,074,947 $ 175,876 $ 305,705 $ 3,454,175 Acquired Loans (000’s omitted) Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Total Performing $ 355,983 $ 7,855 $ 2,271 $ 65,328 $ 431,437 Nonperforming 2,152 32 4 586 2,774 Total $ 358,135 $ 7,887 $ 2,275 $ 65,914 $ 434,211 The following table details the balances in all other loan categories at December 31, 2018: Legacy Loans (000’s omitted) Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Total Performing $ 1,837,185 $ 1,072,134 $ 175,726 $ 310,875 $ 3,395,920 Nonperforming 11,265 258 48 1,666 13,237 Total $ 1,848,450 $ 1,072,392 $ 175,774 $ 312,541 $ 3,409,157 Acquired Loans (000’s omitted) Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Total Performing $ 384,336 $ 10,781 $ 3,042 $ 73,615 $ 471,774 Nonperforming 2,622 34 4 553 3,213 Total $ 386,958 $ 10,815 $ 3,046 $ 74,168 $ 474,987 (000’s omitted) June 30, 2019 December 31, 2018 Loans with allowance allocation $ 0 $ 3,956 Loans without allowance allocation 5,096 2,230 Carrying balance 5,096 6,186 Contractual balance 12,021 12,078 Specifically allocated allowance 0 956 In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial standing and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. In accordance with the clarified guidance issued by the Office of the Comptroller of the Currency (“OCC”), loans that have been discharged in Chapter 7 bankruptcy but not reaffirmed by the borrower, are classified as TDRs, irrespective of payment history or delinquency status, even if the repayment terms for the loan have not been otherwise modified. The Company’s lien position against the underlying collateral remains unchanged. Pursuant to that guidance, the Company records a charge-off equal to any portion of the carrying value that exceeds the net realizable value of the collateral. The amount of loss incurred in the three and six months ended June 30, 2019 and 2018 was immaterial. TDRs that are less than $0.5 million are collectively included in the general loan loss allocation and the qualitative review. TDRs that are commercial loans and greater than $0.5 million are individually evaluated for impairment, and if necessary, a specific allocation of the allowance for loan losses is provided. As a result, the determination of the amount of allowance for loan losses related to TDRs is the same as detailed in the critical accounting policies. Information regarding TDRs as of June 30, 2019 and December 31, 2018 is as follows: June 30, 2019 December 31, 2018 (000’s omitted) Nonaccrual Accruing Total Nonaccrual Accruing Total # Amount # Amount # Amount # Amount # Amount # Amount Business lending 4 $ 264 3 $ 211 7 $ 475 4 $ 162 2 $ 165 6 $ 327 Consumer mortgage 51 2,334 48 1,853 99 4,187 46 1,986 46 1,769 92 3,755 Consumer indirect 0 0 75 786 75 786 0 0 77 857 77 857 Consumer direct 0 0 22 74 22 74 0 0 22 71 22 71 Home equity 14 243 11 316 25 559 12 240 9 275 21 515 Total 69 $ 2,841 159 $ 3,240 228 $ 6,081 62 $ 2,388 156 $ 3,137 218 $ 5,525 The following table presents information related to loans modified in a TDR during the three months and six months ended June 30, 2019 and 2018. Of the loans noted in the table below, all loans for the three months and six months ended June 30, 2019 and 2018 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial. Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (000’s omitted) Number of loans modified Outstanding Balance Number of loans modified Outstanding Balance Business lending 2 $ 250 0 $ 0 Consumer mortgage 4 283 4 452 Consumer indirect 4 33 8 70 Consumer direct 2 6 3 12 Home equity 3 71 1 86 Total 15 $ 643 16 $ 620 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (000’s omitted) Number of loans modified Outstanding Balance Number of loans modified Outstanding Balance Business lending 2 $ 250 1 $ 93 Consumer mortgage 11 861 4 452 Consumer indirect 12 98 11 92 Consumer direct 3 12 5 14 Home equity 4 75 1 86 Total 32 $ 1,296 22 $ 737 Allowance for Loan Losses The allowance for loan losses is general in nature and is available to absorb losses from any loan type despite the analysis below. The following presents by class the activity in the allowance for loan losses: Three Months Ended June 30, 2019 (000’s omitted) Business Lending Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Unallocated Acquired Impaired Total Beginning balance $ 18,271 $ 10,317 $ 14,251 $ 3,056 $ 2,067 $ 990 $ 155 $ 49,107 Charge-offs (253 ) (587 ) (1,482 ) (445 ) (104 ) 0 0 (2,871 ) Recoveries 169 14 1,239 221 31 0 0 1,674 Provision (418 ) 1,019 337 352 109 1 0 1,400 Ending balance $ 17,769 $ 10,763 $ 14,345 $ 3,184 $ 2,103 $ 991 $ 155 $ 49,310 Three Months Ended June 30, 2018 (000’s omitted) Business Lending Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Unallocated Acquired Impaired Total Beginning balance $ 17,607 $ 10,382 $ 13,698 $ 2,984 $ 2,040 $ 1,084 $ 308 $ 48,103 Charge-offs (260 ) (245 ) (1,383 ) (364 ) (47 ) 0 (323 ) (2,622 ) Recoveries 114 54 1,347 167 7 0 0 1,689 Provision 978 282 762 377 15 (14 ) 48 2,448 Ending balance $ 18,439 $ 10,473 $ 14,424 $ 3,164 $ 2,015 $ 1,070 $ 33 $ 49,618 Six Months Ended June 30, 2019 (000’s omitted) Business Lending Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Unallocated Acquired Impaired Total Beginning balance $ 18,522 $ 10,124 $ 14,366 $ 3,095 $ 2,144 $ 1,000 $ 33 $ 49,284 Charge-offs (1,469 ) (840 ) (3,305 ) (980 ) (178 ) 0 0 (6,772 ) Recoveries 303 36 2,201 400 36 0 0 2,976 Provision 413 1,443 1,083 669 101 (9 ) 122 3,822 Ending balance $ 17,769 $ 10,763 $ 14,345 $ 3,184 $ 2,103 $ 991 $ 155 $ 49,310 Six Months Ended June 30, 2018 (000’s omitted) Business Lending Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Unallocated Acquired Impaired Total Beginning balance $ 17,257 $ 10,465 $ 13,468 $ 3,039 $ 2,107 $ 1,100 $ 147 $ 47,583 Charge-offs (1,928 ) (444 ) (3,667 ) (860 ) (103 ) 0 (367 ) (7,369 ) Recoveries 312 62 2,498 389 16 0 0 3,277 Provision 2,798 390 2,125 596 (5 ) (30 ) 253 6,127 Ending balance $ 18,439 $ 10,473 $ 14,424 $ 3,164 $ 2,015 $ 1,070 $ 33 $ 49,618

GOODWILL AND IDENTIFIABLE INTAN

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2019
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS [Abstract]
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS	NOTE F: GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows: June 30, 2019 December 31, 2018 (000's omitted) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets: Core deposit intangibles $ 62,902 $ (47,164 ) $ 15,738 $ 62,902 $ (44,306 ) $ 18,596 Other intangibles 88,816 (37,542 ) 51,274 87,616 (32,366 ) 55,250 Total amortizing intangibles $ 151,718 $ (84,706 ) $ 67,012 $ 150,518 $ (76,672 ) $ 73,846 The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows: (000's omitted) Jul - Dec 2019 $ 7,529 2020 12,956 2021 11,053 2022 9,483 2023 7,947 Thereafter 18,044 Total $ 67,012 Shown below are the components of the Company’s goodwill at December 31, 2018 and June 30, 2019: (000’s omitted) December 31, 2018 Activity June 30, 2019 Goodwill $ 738,327 $ 0 $ 738,327 Accumulated impairment (4,824 ) 0 (4,824 ) Goodwill, net $ 733,503 $ 0 $ 733,503

LEASES

LEASES	6 Months Ended
	Jun. 30, 2019
LEASES [Abstract]
LEASES	NOTE G: LEASES The Company has operating leases for certain offices and certain equipment. These leases have remaining terms that range from less than one year to 16 years. Options to extend the leases range from a single extension option of one year to multiple extension options for up to 40 years. Certain agreements include an option to terminate the lease within one year. The components of lease expense are as follows: (000’s omitted) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost $ 2,145 $ 4,262 Short-term lease cost (1) 49 103 Total lease cost $ 2,194 $ 4,365 (1) Short-term lease cost includes the cost of leases with terms of twelve months or less, excluding leases with terms of one month or less. Supplemental cash flow information related to leases is as follows: (000’s omitted) Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 3,997 Right-of-use assets obtained in exchange for lease obligations: Operating leases 7,712 (000’s omitted, except lease term and discount rate) June 30, 2019 Operating leases Operating lease right-of-use assets $ 37,650 Operating lease liabilities 38,368 Weighted average remaining lease term Operating leases 6.9 years Weighted average discount rate Operating leases 3.10 % Maturities of lease liabilities as of June 30, 2019 are as follows: (000’s omitted) Operating Leases Jul - Dec 2019 $ 4,351 2020 8,284 2021 6,703 2022 5,407 2023 4,437 Thereafter 13,911 Total lease payments 43,093 Less imputed interest (4,725 ) Total $ 38,368 Included in the Company’s operating leases are related party leases where BPAS Actuarial & Pension Services, LLC and OneGroup NY, Inc., subsidiaries of the Company, lease office space from 706 North Clinton, LLC., an entity the Company holds a 50% membership interest in through its subsidiary Oneida Preferred Funding II, LLC. As of June 30, 2019, the operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $5.1 million and $5.1 million, respectively. As of June 30, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s related party leases are 10.4 years and 3.67%, respectively. The maturities of the Company’s related party lease liabilities as of June 30, 2019 are as follows: (000’s omitted) 706 North Clinton, LLC Jul - Dec 2019 $ 295 2020 591 2021 591 2022 591 2023 591 Thereafter 3,538 Total lease payments 6,197 Less imputed interest (1,058 ) Total $ 5,139 As of June 30, 2019, the Company has one additional operating lease for office space that has not yet commenced with a lease term of years. The Company anticipates that the operating lease will commence during the third quarter of 2019. Upon commencement, lease right-of-use assets and lease liabilities of approximately $ million will be recorded in the consolidated statements of condition.

MANDATORILY REDEEMABLE PREFERRE

MANDATORILY REDEEMABLE PREFERRED SECURITIES	6 Months Ended
	Jun. 30, 2019
MANDATORILY REDEEMABLE PREFERRED SECURITIES [Abstract]
MANDATORILY REDEEMABLE PREFERRED SECURITIES	NOTE H: MANDATORILY REDEEMABLE PREFERRED SECURITIES The Company sponsors two business trusts, Community Capital Trust IV (“CCT IV”) and MBVT Statutory Trust I (“MBVT I”), of which 100 % of the common stock is owned by the Company. The common stock of MBVT Statutory Trust I was acquired in the Merchants Bancshares, Inc. (“Merchants”) acquisition. The trusts were formed for the purpose of issuing company-obligated mandatorily redeemable preferred securities to third-party investors and investing the proceeds from the sale of such preferred securities solely in junior subordinated debt securities of the Company. The debentures held by each trust are the sole assets of such trust. Distributions on the preferred securities issued by each trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the debentures held by that trust and are recorded as interest expense in the consolidated financial statements. The preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities subject to the terms of each of the guarantees. The terms of the preferred securities of each trust are as follows: Trust Issuance Date Par Amount Interest Rate Maturity Date Call Price CCT IV 12/8/2006 $75.0 million 3 month LIBOR plus 1.65% (4.06%) 12/15/2036 Par MBVT I 12/15/2004 $20.6 million 3 month LIBOR plus 1.95% (4.36%) 12/31/2034 Par

BENEFIT PLANS

BENEFIT PLANS	6 Months Ended
	Jun. 30, 2019
BENEFIT PLANS [Abstract]
BENEFIT PLANS	NOTE I: BENEFIT PLANS The Company provides a qualified defined benefit pension to eligible employees and retirees, other post-retirement health and life insurance benefits to certain retirees, an unfunded supplemental pension plan for certain key executives, and an unfunded stock balance plan for certain of its nonemployee directors. The Company accrues for the estimated cost of these benefits through charges to expense during the years that employees earn these benefits. The service cost component of net periodic benefit income is included in the salaries and employee benefits line of the Consolidated Statements of Income, while the other components of net periodic benefit income are included in other expenses. The Company made a $7.3 million contribution to its defined benefit pension plan in the first quarter of 2019. Effective June 1, 2018, the Company adopted the Community Bank System, Inc. Restoration Plan (“Restoration Plan”). The Restoration Plan is a non-qualified deferred compensation plan for certain employees whose benefits under tax-qualified retirement plans are restricted by the Internal Revenue Code Section 401(a)(17) limitation on compensation. Adoption of the plan resulted in an unfunded initial projected benefit obligation of approximately $0.8 million that will be amortized over the average expected future years of service of active plan participants. The net periodic benefit cost for the three and six months ended June 30, 2019 and 2018 is as follows: Pension Benefits Post-retirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, (000's omitted) 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ 1,270 $ 1,121 $ 2,540 $ 2,242 $ 0 $ 0 $ 0 $ 0 Interest cost 1,565 1,415 3,133 2,829 18 17 35 34 Expected return on plan assets (3,578 ) (3,705 ) (7,155 ) (7,410 ) 0 0 0 0 Amortization of unrecognized net loss 643 298 1,284 596 9 5 19 10 Amortization of prior service cost 16 (83 ) 31 (165 ) (45 ) (44 ) (89 ) (89 ) Net periodic benefit $ (84 ) $ (954 ) $ (167 ) $ (1,908 ) $ (18 ) $ (22 ) $ (35 ) $ (45 )

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2019
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	NOTE J: EARNINGS PER SHARE The two class method is used in the calculations of basic and diluted earnings per share. Under the two class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared and participation rights in undistributed earnings. The Company has determined that all of its outstanding non-vested stock awards are participating securities as of June 30, 2019. Basic earnings per share are computed based on the weighted-average of the common shares outstanding for the period. Diluted earnings per share are based on the weighted-average of the shares outstanding and the assumed exercise of stock options during the year. The dilutive effect of options is calculated using the treasury stock method of accounting. The treasury stock method determines the number of common shares that would be outstanding if all the dilutive options (those where the average market price is greater than the exercise price) were exercised and the proceeds were used to repurchase common shares in the open market at the average market price for the applicable time period. There were approximately 0.5 million weighted-average anti-dilutive stock options outstanding for the three months and six months ended June 30, 2019, compared to 0.4 million weighted-average anti-dilutive stock options outstanding for the three months and six months ended June 30, 2018 that were not included in the computation below. The following is a reconciliation of basic to diluted earnings per share for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, (000's omitted, except per share data) 2019 2018 2019 2018 Net income $ 45,015 $ 44,606 $ 86,961 $ 84,712 Income attributable to unvested stock-based compensation awards (146 ) (188 ) (255 ) (353 ) Income available to common shareholders $ 44,869 $ 44,418 $ 86,706 $ 84,359 Weighted-average common shares outstanding – basic 51,659 51,140 51,590 51,037 Basic earnings per share $ 0.87 $ 0.87 $ 1.68 $ 1.65 Net income $ 45,015 $ 44,606 $ 86,961 $ 84,712 Income attributable to unvested stock-based compensation awards (146 ) (188 ) (255 ) (353 ) Income available to common shareholders $ 44,869 $ 44,418 $ 86,706 $ 84,359 Weighted-average common shares outstanding – basic 51,659 51,140 51,590 51,037 Assumed exercise of stock options 529 583 535 576 Weighted-average common shares outstanding – diluted 52,188 51,723 52,125 51,613 Diluted earnings per share $ 0.86 $ 0.86 $ 1.66 $ 1.63 Stock Repurchase Program At its December 2017 meeting, the Company’s Board of Directors (the “Board”) approved a stock repurchase program authorizing the repurchase of up to 2.5 million shares of the Company’s common stock in accordance with securities laws and regulations, through December 31, 2018. At its December 2018 meeting, the Board approved a similar program for 2019, authorizing the repurchase of up to 2.5 million shares of the Company’s common stock through December 31, 2019. Any repurchased shares will be used for general corporate purposes, including those related to stock plan activities. The timing and extent of repurchases will depend on market conditions and other corporate considerations as determined at the Company’s discretion. The Company did not repurchase any shares under the authorized plan during the first six months of 2019 or 2018.

COMMITMENTS, CONTINGENT LIABILI

COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS	6 Months Ended
	Jun. 30, 2019
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS [Abstract]
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS	NOTE K: COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments consist primarily of commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. These commitments consist principally of unused commercial and consumer credit lines. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of an underlying contract with a third party. The credit risks associated with commitments to extend credit and standby letters of credit are essentially the same as that involved with extending loans to customers and are subject to the Company’s normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness. The fair value of the standby letters of credit is immaterial for disclosure. The contract amounts of commitments and contingencies are as follows: (000's omitted) June 30, 2019 December 31, 2018 Commitments to extend credit $ 964,897 $ 1,134,576 Standby letters of credit 35,496 33,169 Total $ 1,000,393 $ 1,167,745 The Company and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. As of June 30, 2019, management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against the Company or its subsidiaries will be material to the Company’s consolidated financial position. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. The range of reasonably possible losses for matters where an exposure is not currently estimable or considered probable, beyond the existing recorded liabilities, is between $0 and $1 million in the aggregate. Although the Company does not believe that the outcome of pending litigation will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2019
FAIR VALUE [Abstract]
FAIR VALUE	NOTE L: FAIR VALUE Accounting standards establish a framework for measuring fair value and require certain disclosures about such fair value instruments. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. exit price). Inputs used to measure fair value are classified into the following hierarchy: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. • Level 3 - Significant valuation assumptions not readily observable in a market. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis. There were no transfers between any of the levels for the periods presented. June 30, 2019 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,339,593 $ 117,485 $ 0 $ 1,457,078 Obligations of state and political subdivisions 0 439,697 0 439,697 Government agency mortgage-backed securities 0 397,195 0 397,195 Corporate debt securities 0 2,554 0 2,554 Government agency collateralized mortgage obligations 0 62,514 0 62,514 Total available-for-sale investment securities 1,339,593 1,019,445 0 2,359,038 Equity securities 450 0 0 450 Interest rate swap agreements asset 0 1,009 0 1,009 Interest rate swap agreements liability 0 (757 ) 0 (757 ) Total $ 1,340,043 $ 1,019,697 $ 0 $ 2,359,740 December 31, 2018 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,896,931 $ 126,822 $ 0 $ 2,023,753 Obligations of state and political subdivisions 0 459,154 0 459,154 Government agency mortgage-backed securities 0 382,477 0 382,477 Corporate debt securities 0 2,546 0 2,546 Government agency collateralized mortgage obligations 0 68,119 0 68,119 Total available-for-sale investment securities 1,896,931 1,039,118 0 2,936,049 Equity securities 432 0 0 432 Mortgage loans held for sale 0 83 0 83 Interest rate swap agreements asset 0 793 0 793 Interest rate swap agreements liability 0 (742 ) 0 (742 ) Total $ 1,897,363 $ 1,039,252 $ 0 $ 2,936,615 The valuation techniques used to measure fair value for the items in the table above are as follows: • Available-for-sale investment securities and equity securities – The fair values of available-for-sale investment securities are based upon quoted prices, if available. If quoted prices are not available, fair values are measured using quoted market prices for similar securities or model-based valuation techniques. Level 1 securities include U.S. Treasury obligations and marketable equity securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 securities include U.S. agency securities, mortgage-backed securities issued by government-sponsored entities, municipal securities and corporate debt securities that are valued by reference to prices for similar securities or through model-based techniques in which all significant inputs, such as reported trades, trade execution data, LIBOR swap yield curve, market prepayment speeds, credit information, market spreads, and security’s terms and conditions, are observable. See Note D for further disclosure of the fair value of investment securities. • Mortgage loans held for sale – The Company has elected to value loans held for sale at fair value in order to more closely match the gains and losses associated with loans held for sale with the gains and losses on forward sales contracts. Accordingly, the impact on the valuation will be recognized in the Company’s consolidated statement of income. All mortgage loans held for sale are current and in performing status. The fair value of mortgage loans held for sale is determined using quoted secondary-market prices of loans with similar characteristics and, as such, has been classified as a Level 2 valuation. There were no mortgage loans held for sale at June 30, 2019. The unpaid principal value of mortgage loans held for sale was approximately $0.1 million at December 31, 2018. The unrealized gain on mortgage loans held for sale was recognized in other banking revenues in the consolidated statements of income and is immaterial. • Forward sales commitments – The Company enters into forward sales commitments to sell certain residential real estate loans. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value in the other asset or other liability section of the consolidated statement of condition. The fair value of these forward sales commitments is primarily measured by obtaining pricing from certain government-sponsored entities and reflects the underlying price the entity would pay the Company for an immediate sale on these mortgages. As such, these instruments are classified as Level 2 in the fair value hierarchy. • Commitments to originate real estate loans for sale – The Company enters into various commitments to originate residential real estate loans for sale. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value in the other asset or other liability section of the consolidated statement of condition. The estimated fair value of these commitments is determined using quoted secondary market prices obtained from certain government-sponsored entities. Additionally, accounting guidance requires the expected net future cash flows related to the associated servicing of the loan to be included in the fair value measurement of the derivative. The expected net future cash flows are based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. Such assumptions include estimates of the cost of servicing loans, appropriate discount rate and prepayment speeds. The determination of expected net cash flows is considered a significant unobservable input contributing to the Level 3 classification of commitments to originate real estate loans for sale. • Interest rate swaps – The interest rate swaps are reported at their fair value utilizing Level 2 inputs from third parties. The fair value of the interest rate swaps are determined using prices obtained from a third party advisor. The fair value measurement of the interest rate swap is determined by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates derived from observed market interest rate curves. The fair value information of assets and liabilities measured on a non-recurring basis presented below is not as of the period-end, but rather as of the date the fair value adjustment was recorded closest to the date presented. June 30, 2019 December 31, 2018 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Impaired loans $ 0 $ 0 $ 2,831 $ 2,831 $ 0 $ 0 $ 1,102 $ 1,102 Other real estate owned 0 0 1,736 1,736 0 0 1,320 1,320 Total $ 0 $ 0 $ 4,567 $ 4,567 $ 0 $ 0 $ 2,422 $ 2,422 Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for loan losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, adjusted for non-observable inputs. Thus, the resulting nonrecurring fair value measurements are generally classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and, therefore, such valuations classify as Level 3. Other real estate owned (“OREO”) is valued at the time the loan is foreclosed upon and the asset is transferred to OREO. The value is based primarily on third party appraisals, less costs to sell. The appraisals are sometimes further discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the customer and customer’s business. Such discounts are significant, ranging from 6.2% to 77.4% at June 30, 2019 and result in a Level 3 classification of the inputs for determining fair value. OREO is reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. The Company recovers the carrying value of OREO through the sale of the property. The ability to affect future sales prices is subject to market conditions and factors beyond the Company’s control and may impact the estimated fair value of a property. Originated mortgage servicing rights are recorded at their fair value at the time of sale of the underlying loan, and are amortized in proportion to and over the estimated period of net servicing income. The fair value of mortgage servicing rights is based on a valuation model incorporating inputs that market participants would use in estimating future net servicing income. Such inputs include estimates of the cost of servicing loans, appropriate discount rate and prepayment speeds and are considered to be unobservable and contribute to the Level 3 classification of mortgage servicing rights. In accordance with GAAP, the Company must record impairment charges, on a nonrecurring basis, when the carrying value of a stratum exceeds its estimated fair value. Impairment is recognized through a valuation allowance. There is no valuation allowance at June 30, 2019. The Company determines fair values based on quoted market values, where available, estimates of present values, or other valuation techniques. Those techniques are significantly affected by the assumptions used, including, but not limited to, the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in immediate settlement of the instrument. The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis are as follows: (000's omitted) Fair Value at June 30, 2019 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Range (Weighted Average) Impaired loans $ 2,831 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 40.4% (35.0 %) Other real estate owned 1,736 Fair value of collateral Estimated cost of disposal/market adjustment 6.2% - 77.4% (24.1 %) (000's omitted) Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Range (Weighted Average) Impaired loans $ 1,102 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 35.4% (28.8 %) Other real estate owned 1,320 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 69.3% (23.8 %) June 30, 2019 December 31, 2018 (000's omitted) Carrying Value Fair Value Carrying Value Fair Value Financial assets: Net loans $ 6,234,760 $ 6,349,252 $ 6,231,837 $ 6,247,939 Financial liabilities: Deposits 8,488,205 8,481,874 8,322,371 8,308,765 Short-term borrowings 0 0 54,400 54,400 Securities sold under agreement to repurchase, short-term 142,359 142,359 259,367 259,367 Other long-term debt 1,931 1,922 1,976 1,921 Subordinated debt held by unconsolidated subsidiary trusts 97,939 97,939 97,939 97,939 The following is a further description of the principal valuation methods used by the Company to estimate the fair values of its financial instruments. Loans have been classified as a Level 3 valuation. Fair values for variable rate loans that reprice frequently are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Deposits have been classified as a Level 2 valuation. The fair value of demand deposits, interest-bearing checking deposits, savings accounts, and money market deposits is the amount payable on demand at the reporting date. The fair value of time deposit obligations are based on current market rates for similar products. Borrowings and subordinated debt held by unconsolidated subsidiary trusts have been classified as a Level 2 valuation. The fair value of short-term borrowings and securities sold under agreement to repurchase, short-term, is the amount payable on demand at the reporting date. Fair values for long-term debt and subordinated debt held by unconsolidated subsidiary trusts are estimated using discounted cash flows and interest rates currently being offered on similar securities. The difference between the carrying values of long-term borrowings and subordinated debt held by unconsolidated subsidiary trusts, and their fair values, are not material as of the reporting dates. Other financial assets and liabilities – Cash and cash equivalents have been classified as a Level 1 valuation, while accrued interest receivable and accrued interest payable have been classified as a Level 2 valuation. The fair values of each approximate the respective carrying values because the instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2019
DERIVATIVE INSTRUMENTS [Abstract]
DERIVATIVE INSTRUMENTS	NOTE M: DERIVATIVE INSTRUMENTS The Company is party to derivative financial instruments in the normal course of its business to meet the financing needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments have been limited to interest rate swap agreements, commitments to originate real estate loans held for sale and forward sales commitments. The Company does not hold or issue derivative financial instruments for trading or other speculative purposes. The Company enters into forward sales commitments for the future delivery of residential mortgage loans, and interest rate lock commitments to fund loans at a specified interest rate. The forward sales commitments are utilized to reduce interest rate risk associated with interest rate lock commitments and loans held for sale. Changes in the estimated fair value of the forward sales commitments and interest rate lock commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. At inception and during the life of the interest rate lock commitment, the Company includes the expected net future cash flows related to the associated servicing of the loan as part of the fair value measurement of the interest rate lock commitments. These derivatives are recorded at fair value, which were immaterial at June 30, 2019 and December 31, 2018. The effect of the changes to these derivatives for the three and six months then ended was also immaterial. The Company also acquired interest rate swaps in 2017 with notional amounts totaling $6.2 million at June 30, 2019, and $6.6 million at December 31, 2018, that were designated as fair value hedges of certain fixed rate loans with municipalities which are recorded in loans in the consolidated statements of condition. At June 30, 2019, the weighted average receive rate of these interest rate swaps was 2.89%, the weighted average pay rate was 3.11% and the weighted average maturity was 14.0 years. At December 31, 2018, the weighted average receive rate of these interest rate swaps was 2.92%, the weighted average pay rate was 3.11% and the weighted average maturity was 14.5 years. The Company includes the gain or loss on the hedged items in interest and fees on loans, the same line item as the offsetting gain or loss on the related interest rate swaps. The effects of fair value accounting in the consolidated statements of income for the three and six months ended June 30, 2019 are immaterial. As of June 30, 2019, the following amounts were recorded in the consolidated statement of condition related to cumulative basis adjustments for fair value hedges: (000’s omitted) Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets Line Item in the Consolidated Statement of Condition in Which the Hedged Item Is Included June 30, 2019 June 30, 2019 Loans $ 6,475 $ (252 ) Fair values of derivative instruments as of June 30, 2019 are as follows: (000’s omitted) June 30, 2019 Derivative Assets Derivative Liabilities Consolidated Statement of Condition Location Fair Value Consolidated Statement of Condition Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets $ 252 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets 757 Accrued interest and other liabilities $ 757 Total derivatives $ 1,009 $ 757 The Company assessed its counterparty risk at June 30, 2019 and determined any credit risk inherent in our derivative contracts was not material. Information about the fair value of derivative financial instruments can be found in Note L to these consolidated financial statements.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2019
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION	NOTE N: SEGMENT INFORMATION Operating segments are components of an enterprise, which are evaluated regularly by the “chief operating decision maker” in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker is the President and Chief Executive Officer of the Company. The Company has identified Banking, Employee Benefit Services and All Other as its reportable operating business segments. Community Bank, N.A. (the “Bank” or “CBNA”) operates the Banking segment that provides full-service banking to consumers, businesses, and governmental units in Upstate New York as well as Northeastern Pennsylvania, Vermont and Western Massachusetts. Employee Benefit Services, which includes the operating subsidiaries Benefit Plans Administrative Services, LLC, BPAS Actuarial and Pension Services, LLC, BPAS Trust Company of Puerto Rico, Northeast Retirement Services, LLC (“NRS”), Global Trust Company, Inc. (“GTC”), and Hand Benefits & Trust Company, provides employee benefit trust, collective investment fund, retirement plan administration, fund administration, transfer agency, actuarial, VEBA/HRA, and health and welfare consulting services. The All Other segment is comprised of: (a) wealth management services including trust services provided by the personal trust unit within the Bank, broker-dealer and investment advisory services provided by CISI and The Carta Group, Inc., as well as asset management provided by Nottingham Advisors, Inc., and (b) full-service insurance, risk management and employee benefit services provided by OneGroup. The accounting policies used in the disclosure of business segments are the same as those described in the summary of significant accounting policies (See Note A, Summary of Significant Accounting Policies Information about reportable segments and reconciliation of the information to the consolidated financial statements follows: (000's omitted) Banking Employee Benefit Services All Other Eliminations Consolidated Total Three Months Ended June 30, 2019 Net interest income $ 88,127 $ 131 $ 42 $ 0 $ 88,300 Provision for loan losses 1,400 0 0 0 1,400 Noninterest revenues 21,921 24,839 15,159 (1,213 ) 60,706 Amortization of intangible assets 1,375 1,669 860 0 3,904 Acquisition expenses 1,194 0 0 0 1,194 Other operating expenses 60,578 15,405 11,308 (1,213 ) 86,078 Income before income taxes $ 45,501 $ 7,896 $ 3,033 $ 0 $ 56,430 Assets $ 10,534,555 $ 206,178 $ 72,862 $ (68,207 ) $ 10,745,388 Goodwill $ 629,916 $ 83,275 $ 20,312 $ 0 $ 733,503 Core deposit intangibles & Other intangibles $ 15,738 $ 41,107 $ 10,167 $ 0 $ 67,012 Three Months Ended June 30, 2018 Net interest income $ 86,723 $ 93 $ 30 $ 0 $ 86,846 Provision for loan losses 2,448 0 0 0 2,448 Noninterest revenues 20,040 23,051 14,168 (700 ) 56,559 Amortization of intangible assets 1,635 1,989 931 0 4,555 Acquisition expenses 65 0 6 0 71 Other operating expenses 57,464 14,204 10,518 (700 ) 81,486 Income before income taxes $ 45,151 $ 6,951 $ 2,743 $ 0 $ 54,845 Assets $ 10,415,083 $ 207,114 $ 64,560 $ (53,663 ) $ 10,633,094 Goodwill $ 629,916 $ 83,275 $ 20,288 $ 0 $ 733,479 Core deposit intangibles & Other intangibles $ 21,646 $ 48,484 $ 12,518 $ 0 $ 82,648 (000's omitted) Banking Employee Benefit Services All Other Eliminations Consolidated Total Six Months Ended June 30, 2019 Net interest income $ 174,842 $ 239 $ 78 $ 0 $ 175,159 Provision for loan losses 3,822 0 0 0 3,822 Noninterest revenues 39,269 49,509 29,606 (1,982 ) 116,402 Amortization of intangible assets 2,858 3,438 1,738 0 8,034 Acquisition expenses 1,728 0 0 0 1,728 Other operating expenses 120,347 29,684 22,017 (1,982 ) 170,066 Income before income taxes $ 85,356 $ 16,626 $ 5,929 $ 0 $ 107,911 Six Months Ended June 30, 2018 Net interest income $ 171,253 $ 163 $ 54 $ 0 $ 171,470 Provision for loan losses 6,127 0 0 0 6,127 Noninterest revenues 40,397 46,500 28,548 (1,395 ) 114,050 Amortization of intangible assets 3,379 4,077 1,897 0 9,353 Acquisition expenses 50 7 6 0 63 Other operating expenses 114,418 27,914 22,090 (1,395 ) 163,027 Income before income taxes $ 87,676 $ 14,665 $ 4,609 $ 0 $ 106,950

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2019
BASIS OF PRESENTATION [Abstract]
Basis of Presentation	The interim financial data as of and for the three and six months ended June 30, 2019 is unaudited; however, in the opinion of Community Bank System, Inc. (the “Company”), the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2019
ACCOUNTING POLICIES [Abstract]
Leases	Leases The Company occupies certain offices and uses certain equipment under non-cancelable operating lease agreements. The Company determines if an arrangement is a lease at inception. The right-of-use assets associated with operating leases are recorded in premises and equipment in the Company’s consolidated statements of condition. The lease liabilities associated with operating leases are included in accrued interest and other liabilities in the Company’s consolidated statements of condition. Right-of-use assets represent the Company’s right to use the underlying assets for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the associated leases. Operating lease right-of-use assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. The Company uses interest rates on advances from the Federal Home Loan Bank of New York available at the time of commencement to determine the present value of lease payments. The operating lease right-of-use assets include any lease payments made at the time of commencement and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term and is included in occupancy and equipment expense in the Company’s consolidated statements of income.
Derivative Financial Instruments and Hedging Activities	Derivative Financial Instruments and Hedging Activities The Company accounts for derivative financial instruments at fair value. If certain conditions are met, a derivative may be specifically designated as (1) a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (“fair value hedge”), (2) a hedge of the exposure to variable cash flows of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest revenues. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest revenues. Cash flows on hedges are classified in the consolidated statement of cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking the fair value or cash flow hedges to specific assets and liabilities on the statement of condition or to specific commitments or forecasted transactions. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded in noninterest revenues. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued, but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Topic 840, Leases In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.
New Accounting Pronouncements	In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350)

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2019
ACQUISITIONS [Abstract]
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: 2019 2018 (000s omitted) Wealth Resources Other (1) Consideration paid : Cash $ 1,200 $ 1,753 Total net consideration paid $ 1,200 $ 1,753 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 0 16 Premises and equipment 0 10 Other assets 0 105 Other intangibles 1,200 1,343 Other liabilities 0 (31 ) Total identifiable assets, net 1,200 1,443 Goodwill $ 0 $ 310 (1)

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2019
INVESTMENT SECURITIES [Abstract]
Amortized Cost and Estimated Fair Value of Investment Securities	The amortized cost and estimated fair value of investment securities as of June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 (000's omitted) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-Sale Portfolio: U.S. Treasury and agency securities $ 1,435,302 $ 22,204 $ 428 $ 1,457,078 $ 2,036,474 $ 2,190 $ 14,911 $ 2,023,753 Obligations of state and political subdivisions 427,621 12,076 0 439,697 453,640 6,563 1,049 459,154 Government agency mortgage-backed securities 395,220 4,196 2,221 397,195 390,234 1,526 9,283 382,477 Corporate debt securities 2,558 0 4 2,554 2,588 0 42 2,546 Government agency collateralized mortgage obligations 61,996 586 68 62,514 69,342 60 1,283 68,119 Total available-for-sale portfolio $ 2,322,697 $ 39,062 $ 2,721 $ 2,359,038 $ 2,952,278 $ 10,339 $ 26,568 $ 2,936,049 Equity and other Securities: Equity securities, at fair value $ 251 $ 199 $ 0 $ 450 $ 251 $ 200 $ 19 $ 432 Federal Home Loan Bank common stock 6,251 0 0 6,251 8,768 0 0 8,768 Federal Reserve Bank common stock 30,690 0 0 30,690 30,690 0 0 30,690 Other equity securities, at adjusted cost 5,093 750 0 5,843 4,969 750 0 5,719 Total equity and other securities $ 42,285 $ 949 $ 0 $ 43,234 $ 44,678 $ 950 $ 19 $ 45,609
Summary of Investment Securities That Have Been in a Continuous Unrealized Loss Position for Less Than or Greater Than Twelve Months	A summary of investment securities that have been in a continuous unrealized loss position is as follows: As of June 30, 2019 Less than 12 Months 12 Months or Longer Total (000's omitted) # Fair Value Gross Unrealized Losses # Fair Value Gross Unrealized Losses # Fair Value Gross Unrealized Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 0 $ 0 $ 0 19 $ 188,692 $ 428 19 $ 188,692 $ 428 Obligations of state and political subdivisions 0 0 0 1 516 0 1 516 0 Government agency mortgage-backed securities 6 4,551 6 142 192,786 2,215 148 197,337 2,221 Corporate debt securities 0 0 0 1 2,554 4 1 2,554 4 Government agency collateralized mortgage obligations 0 0 0 13 18,233 68 13 18,233 68 Total available-for-sale investment portfolio 6 $ 4,551 $ 6 176 $ 402,781 $ 2,715 182 $ 407,332 $ 2,721 As of December 31, 2018 Less than 12 Months 12 Months or Longer Total (000's omitted) # Fair Value Gross Unrealized Losses # Fair Value Gross Unrealized Losses # Fair Value Gross Unrealized Losses Available-for-Sale Portfolio: U.S. Treasury and agency securities 7 $ 473,082 $ 682 64 $ 1,213,276 $ 14,229 71 $ 1,686,358 $ 14,911 Obligations of state and political subdivisions 118 55,671 216 97 51,753 833 215 107,424 1,049 Government agency mortgage-backed securities 43 47,708 258 181 253,931 9,025 224 301,639 9,283 Corporate debt securities 0 0 0 1 2,546 42 1 2,546 42 Government agency collateralized mortgage obligations 1 66 0 41 63,112 1,283 42 63,178 1,283 Total available-for-sale investment portfolio 169 $ 576,527 $ 1,156 384 $ 1,584,618 $ 25,412 553 $ 2,161,145 $ 26,568 Equity and other Securities: Equity securities, at fair value 1 $ 82 $ 19 0 $ 0 $ 0 1 $ 82 $ 19 Total equity and other securities 1 $ 82 $ 19 0 $ 0 $ 0 1 $ 82 $ 19
Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity	The amortized cost and estimated fair value of debt securities at June 30, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-Sale (000's omitted) Amortized Cost Fair Value Due in one year or less $ 76,679 $ 76,659 Due after one through five years 1,489,433 1,513,356 Due after five years through ten years 143,339 147,980 Due after ten years 156,030 161,334 Subtotal 1,865,481 1,899,329 Government agency mortgage-backed securities 395,220 397,195 Government agency collateralized mortgage obligations 61,996 62,514 Total $ 2,322,697 $ 2,359,038

LOANS (Tables)

LOANS (Tables)	6 Months Ended
	Jun. 30, 2019
Loans and Leases Receivable Disclosure [Line Items]
Loans Receivable, Net	The balances of these classes are summarized as follows: (000's omitted) June 30, 2019 December 31, 2018 Business lending $ 2,395,684 $ 2,396,977 Consumer mortgage 2,255,782 2,235,408 Consumer indirect 1,082,834 1,083,207 Consumer direct 178,151 178,820 Home equity 371,619 386,709 Gross loans, including deferred origination costs 6,284,070 6,281,121 Allowance for loan losses (49,310 ) (49,284 ) Loans, net of allowance for loan losses $ 6,234,760 $ 6,231,837
Accretable Discount Related to Credit Impaired Acquired Loans	The outstanding balance related to credit impaired acquired loans was $5.6 million and $7.4 million at June 30, 2019 and December 31, 2018, respectively. The changes in the accretable discount related to the credit impaired acquired loans are as follows: (000’s omitted) Balance at December 31, 2018 $ 437 Accretion recognized, year-to-date (133 ) Net reclassification between accretable and non-accretable 76 Balance at June 30, 2019 $ 380
Aged Analysis of Past Due Loans by Class	Legacy Loans (excludes loans acquired after January 1, 2009) (000’s omitted) Past Due 30 – 89 Days 90+ Days Past Due and Still Accruing Nonaccrual Total Past Due Current Total Loans Business lending $ 4,258 $ 491 $ 4,086 $ 8,835 $ 1,669,769 $ 1,678,604 Consumer mortgage 9,675 2,082 10,079 21,836 1,875,811 1,897,647 Consumer indirect 10,973 157 0 11,130 1,063,817 1,074,947 Consumer direct 1,117 27 0 1,144 174,732 175,876 Home equity 1,133 106 1,364 2,603 303,102 305,705 Total $ 27,156 $ 2,863 $ 15,529 $ 45,548 $ 5,087,231 $ 5,132,779 Acquired Loans (000’s omitted) Past Due 30 – 89 Days 90+ Days Past Due and Still Accruing Nonaccrual Total Past Due Acquired Impaired (1) Current Total Loans Business lending $ 1,019 $ 0 $ 3,294 $ 4,313 $ 3,647 $ 709,120 $ 717,080 Consumer mortgage 1,282 80 2,072 3,434 0 354,701 358,135 Consumer indirect 33 32 0 65 0 7,822 7,887 Consumer direct 40 4 0 44 0 2,231 2,275 Home equity 726 68 518 1,312 0 64,602 65,914 Total $ 3,100 $ 184 $ 5,884 $ 9,168 $ 3,647 $ 1,138,476 $ 1,151,291 (1) Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans. The following is an aged analysis of the Company’s past due loans by class as of December 31, 2018: Legacy Loans (000’s omitted) Past Due 30 – 89 Days 90+ Days Past Due and Still Accruing Nonaccrual Total Past Due Current Total Loans Business lending $ 5,261 $ 179 $ 4,872 $ 10,312 $ 1,608,515 $ 1,618,827 Consumer mortgage 12,468 1,393 9,872 23,733 1,824,717 1,848,450 Consumer indirect 14,609 258 0 14,867 1,057,525 1,072,392 Consumer direct 1,778 48 0 1,826 173,948 175,774 Home equity 983 228 1,438 2,649 309,892 312,541 Total $ 35,099 $ 2,106 $ 16,182 $ 53,387 $ 4,974,597 $ 5,027,984 Acquired Loans (000’s omitted) Past Due 30 – 89 Days 90+ Days Past Due and Still Accruing Nonaccrual Total Past Due Acquired Impaired (1) Current Total Loans Business lending $ 974 $ 0 $ 3,498 $ 4,472 $ 5,446 $ 768,232 $ 778,150 Consumer mortgage 841 232 2,390 3,463 0 383,495 386,958 Consumer indirect 78 34 0 112 0 10,703 10,815 Consumer direct 115 4 0 119 0 2,927 3,046 Home equity 613 79 474 1,166 0 73,002 74,168 Total $ 2,621 $ 349 $ 6,362 $ 9,332 $ 5,446 $ 1,238,359 $ 1,253,137 (1) Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans.
Non-Business Impaired Loans	All loan classes are collectively evaluated for impairment except business lending. A summary of individually evaluated impaired loans as of June 30, 2019 and December 31, 2018 follows: (000’s omitted) June 30, 2019 December 31, 2018 Loans with allowance allocation $ 0 $ 3,956 Loans without allowance allocation 5,096 2,230 Carrying balance 5,096 6,186 Contractual balance 12,021 12,078 Specifically allocated allowance 0 956
Troubled Debt Restructurings on Financing Receivables	Information regarding TDRs as of June 30, 2019 and December 31, 2018 is as follows: June 30, 2019 December 31, 2018 (000’s omitted) Nonaccrual Accruing Total Nonaccrual Accruing Total # Amount # Amount # Amount # Amount # Amount # Amount Business lending 4 $ 264 3 $ 211 7 $ 475 4 $ 162 2 $ 165 6 $ 327 Consumer mortgage 51 2,334 48 1,853 99 4,187 46 1,986 46 1,769 92 3,755 Consumer indirect 0 0 75 786 75 786 0 0 77 857 77 857 Consumer direct 0 0 22 74 22 74 0 0 22 71 22 71 Home equity 14 243 11 316 25 559 12 240 9 275 21 515 Total 69 $ 2,841 159 $ 3,240 228 $ 6,081 62 $ 2,388 156 $ 3,137 218 $ 5,525 The following table presents information related to loans modified in a TDR during the three months and six months ended June 30, 2019 and 2018. Of the loans noted in the table below, all loans for the three months and six months ended June 30, 2019 and 2018 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial. Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (000’s omitted) Number of loans modified Outstanding Balance Number of loans modified Outstanding Balance Business lending 2 $ 250 0 $ 0 Consumer mortgage 4 283 4 452 Consumer indirect 4 33 8 70 Consumer direct 2 6 3 12 Home equity 3 71 1 86 Total 15 $ 643 16 $ 620 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (000’s omitted) Number of loans modified Outstanding Balance Number of loans modified Outstanding Balance Business lending 2 $ 250 1 $ 93 Consumer mortgage 11 861 4 452 Consumer indirect 12 98 11 92 Consumer direct 3 12 5 14 Home equity 4 75 1 86 Total 32 $ 1,296 22 $ 737
Allowance for Loan Losses by Class	The allowance for loan losses is general in nature and is available to absorb losses from any loan type despite the analysis below. The following presents by class the activity in the allowance for loan losses: Three Months Ended June 30, 2019 (000’s omitted) Business Lending Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Unallocated Acquired Impaired Total Beginning balance $ 18,271 $ 10,317 $ 14,251 $ 3,056 $ 2,067 $ 990 $ 155 $ 49,107 Charge-offs (253 ) (587 ) (1,482 ) (445 ) (104 ) 0 0 (2,871 ) Recoveries 169 14 1,239 221 31 0 0 1,674 Provision (418 ) 1,019 337 352 109 1 0 1,400 Ending balance $ 17,769 $ 10,763 $ 14,345 $ 3,184 $ 2,103 $ 991 $ 155 $ 49,310 Three Months Ended June 30, 2018 (000’s omitted) Business Lending Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Unallocated Acquired Impaired Total Beginning balance $ 17,607 $ 10,382 $ 13,698 $ 2,984 $ 2,040 $ 1,084 $ 308 $ 48,103 Charge-offs (260 ) (245 ) (1,383 ) (364 ) (47 ) 0 (323 ) (2,622 ) Recoveries 114 54 1,347 167 7 0 0 1,689 Provision 978 282 762 377 15 (14 ) 48 2,448 Ending balance $ 18,439 $ 10,473 $ 14,424 $ 3,164 $ 2,015 $ 1,070 $ 33 $ 49,618 Six Months Ended June 30, 2019 (000’s omitted) Business Lending Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Unallocated Acquired Impaired Total Beginning balance $ 18,522 $ 10,124 $ 14,366 $ 3,095 $ 2,144 $ 1,000 $ 33 $ 49,284 Charge-offs (1,469 ) (840 ) (3,305 ) (980 ) (178 ) 0 0 (6,772 ) Recoveries 303 36 2,201 400 36 0 0 2,976 Provision 413 1,443 1,083 669 101 (9 ) 122 3,822 Ending balance $ 17,769 $ 10,763 $ 14,345 $ 3,184 $ 2,103 $ 991 $ 155 $ 49,310 Six Months Ended June 30, 2018 (000’s omitted) Business Lending Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Unallocated Acquired Impaired Total Beginning balance $ 17,257 $ 10,465 $ 13,468 $ 3,039 $ 2,107 $ 1,100 $ 147 $ 47,583 Charge-offs (1,928 ) (444 ) (3,667 ) (860 ) (103 ) 0 (367 ) (7,369 ) Recoveries 312 62 2,498 389 16 0 0 3,277 Provision 2,798 390 2,125 596 (5 ) (30 ) 253 6,127 Ending balance $ 18,439 $ 10,473 $ 14,424 $ 3,164 $ 2,015 $ 1,070 $ 33 $ 49,618
Business Lending [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans by Credit Quality Indicator	The following table shows the amount of business lending loans by credit quality category: June 30, 2019 December 31, 2018 (000’s omitted) Legacy Acquired Total Legacy Acquired Total Pass $ 1,510,549 $ 626,321 $ 2,136,870 $ 1,439,337 $ 702,493 $ 2,141,830 Special mention 87,398 58,444 145,842 105,065 40,107 145,172 Classified 80,657 28,668 109,325 74,425 28,525 102,950 Doubtful 0 0 0 0 1,579 1,579 Acquired impaired 0 3,647 3,647 0 5,446 5,446 Total $ 1,678,604 $ 717,080 $ 2,395,684 $ 1,618,827 $ 778,150 $ 2,396,977
All Other Loans [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans by Credit Quality Indicator	All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis. These are typically loans to individuals in the consumer categories and are delineated as either performing or nonperforming. Performing loans include loans classified as current as well as those classified as 30 - 89 days past due. Nonperforming loans include 90+ days past due and still accruing and nonaccrual loans. The following table details the balances in all other loan categories at June 30, 2019: Legacy Loans (000’s omitted) Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Total Performing $ 1,885,486 $ 1,074,790 $ 175,849 $ 304,235 $ 3,440,360 Nonperforming 12,161 157 27 1,470 13,815 Total $ 1,897,647 $ 1,074,947 $ 175,876 $ 305,705 $ 3,454,175 Acquired Loans (000’s omitted) Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Total Performing $ 355,983 $ 7,855 $ 2,271 $ 65,328 $ 431,437 Nonperforming 2,152 32 4 586 2,774 Total $ 358,135 $ 7,887 $ 2,275 $ 65,914 $ 434,211 The following table details the balances in all other loan categories at December 31, 2018: Legacy Loans (000’s omitted) Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Total Performing $ 1,837,185 $ 1,072,134 $ 175,726 $ 310,875 $ 3,395,920 Nonperforming 11,265 258 48 1,666 13,237 Total $ 1,848,450 $ 1,072,392 $ 175,774 $ 312,541 $ 3,409,157 Acquired Loans (000’s omitted) Consumer Mortgage Consumer Indirect Consumer Direct Home Equity Total Performing $ 384,336 $ 10,781 $ 3,042 $ 73,615 $ 471,774 Nonperforming 2,622 34 4 553 3,213 Total $ 386,958 $ 10,815 $ 3,046 $ 74,168 $ 474,987

GOODWILL AND IDENTIFIABLE INT_2

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2019
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS [Abstract]
Gross Carrying Amount and Accumulated Amortization of Identifiable Intangible Assets	The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows: June 30, 2019 December 31, 2018 (000's omitted) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets: Core deposit intangibles $ 62,902 $ (47,164 ) $ 15,738 $ 62,902 $ (44,306 ) $ 18,596 Other intangibles 88,816 (37,542 ) 51,274 87,616 (32,366 ) 55,250 Total amortizing intangibles $ 151,718 $ (84,706 ) $ 67,012 $ 150,518 $ (76,672 ) $ 73,846
Estimated Aggregate Amortization Expense for Each of Five Succeeding Fiscal Years	The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows: (000's omitted) Jul - Dec 2019 $ 7,529 2020 12,956 2021 11,053 2022 9,483 2023 7,947 Thereafter 18,044 Total $ 67,012
Components of Goodwill	Shown below are the components of the Company’s goodwill at December 31, 2018 and June 30, 2019: (000’s omitted) December 31, 2018 Activity June 30, 2019 Goodwill $ 738,327 $ 0 $ 738,327 Accumulated impairment (4,824 ) 0 (4,824 ) Goodwill, net $ 733,503 $ 0 $ 733,503

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2019
LEASES [Abstract]
Components of Lease Expense	The components of lease expense are as follows: (000’s omitted) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost $ 2,145 $ 4,262 Short-term lease cost (1) 49 103 Total lease cost $ 2,194 $ 4,365 (1) Short-term lease cost includes the cost of leases with terms of twelve months or less, excluding leases with terms of one month or less.
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases is as follows: (000’s omitted) Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 3,997 Right-of-use assets obtained in exchange for lease obligations: Operating leases 7,712
Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases is as follows: (000’s omitted, except lease term and discount rate) June 30, 2019 Operating leases Operating lease right-of-use assets $ 37,650 Operating lease liabilities 38,368 Weighted average remaining lease term Operating leases 6.9 years Weighted average discount rate Operating leases 3.10 % The contract amounts of commitments and contingencies are as follows: (000's omitted) June 30, 2019 December 31, 2018 Commitments to extend credit $ 964,897 $ 1,134,576 Standby letters of credit 35,496 33,169 Total $ 1,000,393 $ 1,167,745
Operating Leases [Abstract]
Maturities of Lease Liabilities	Maturities of lease liabilities as of June 30, 2019 are as follows: (000’s omitted) Operating Leases Jul - Dec 2019 $ 4,351 2020 8,284 2021 6,703 2022 5,407 2023 4,437 Thereafter 13,911 Total lease payments 43,093 Less imputed interest (4,725 ) Total $ 38,368
706 North Clinton, LLC [Member]
Operating Leases [Abstract]
Maturities of Lease Liabilities	Included in the Company’s operating leases are related party leases where BPAS Actuarial & Pension Services, LLC and OneGroup NY, Inc., subsidiaries of the Company, lease office space from 706 North Clinton, LLC., an entity the Company holds a 50% membership interest in through its subsidiary Oneida Preferred Funding II, LLC. As of June 30, 2019, the operating lease right-of-use assets and operating lease liabilities associated with these related party leases total $5.1 million and $5.1 million, respectively. As of June 30, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s related party leases are 10.4 years and 3.67%, respectively. The maturities of the Company’s related party lease liabilities as of June 30, 2019 are as follows: (000’s omitted) 706 North Clinton, LLC Jul - Dec 2019 $ 295 2020 591 2021 591 2022 591 2023 591 Thereafter 3,538 Total lease payments 6,197 Less imputed interest (1,058 ) Total $ 5,139

MANDATORILY REDEEMABLE PREFER_2

MANDATORILY REDEEMABLE PREFERRED SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2019
MANDATORILY REDEEMABLE PREFERRED SECURITIES [Abstract]
Terms of Preferred Securities	The Company sponsors two business trusts, Community Capital Trust IV (“CCT IV”) and MBVT Statutory Trust I (“MBVT I”), of which 100 % of the common stock is owned by the Company. The common stock of MBVT Statutory Trust I was acquired in the Merchants Bancshares, Inc. (“Merchants”) acquisition. The trusts were formed for the purpose of issuing company-obligated mandatorily redeemable preferred securities to third-party investors and investing the proceeds from the sale of such preferred securities solely in junior subordinated debt securities of the Company. The debentures held by each trust are the sole assets of such trust. Distributions on the preferred securities issued by each trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the debentures held by that trust and are recorded as interest expense in the consolidated financial statements. The preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities subject to the terms of each of the guarantees. The terms of the preferred securities of each trust are as follows: Trust Issuance Date Par Amount Interest Rate Maturity Date Call Price CCT IV 12/8/2006 $75.0 million 3 month LIBOR plus 1.65% (4.06%) 12/15/2036 Par MBVT I 12/15/2004 $20.6 million 3 month LIBOR plus 1.95% (4.36%) 12/31/2034 Par

BENEFIT PLANS (Tables)

BENEFIT PLANS (Tables)	6 Months Ended
	Jun. 30, 2019
BENEFIT PLANS [Abstract]
Net Periodic Benefit Cost	The net periodic benefit cost for the three and six months ended June 30, 2019 and 2018 is as follows: Pension Benefits Post-retirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, (000's omitted) 2019 2018 2019 2018 2019 2018 2019 2018 Service cost $ 1,270 $ 1,121 $ 2,540 $ 2,242 $ 0 $ 0 $ 0 $ 0 Interest cost 1,565 1,415 3,133 2,829 18 17 35 34 Expected return on plan assets (3,578 ) (3,705 ) (7,155 ) (7,410 ) 0 0 0 0 Amortization of unrecognized net loss 643 298 1,284 596 9 5 19 10 Amortization of prior service cost 16 (83 ) 31 (165 ) (45 ) (44 ) (89 ) (89 ) Net periodic benefit $ (84 ) $ (954 ) $ (167 ) $ (1,908 ) $ (18 ) $ (22 ) $ (35 ) $ (45 )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2019
EARNINGS PER SHARE [Abstract]
Reconciliation of Basic to Diluted Earnings per Share	The following is a reconciliation of basic to diluted earnings per share for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, (000's omitted, except per share data) 2019 2018 2019 2018 Net income $ 45,015 $ 44,606 $ 86,961 $ 84,712 Income attributable to unvested stock-based compensation awards (146 ) (188 ) (255 ) (353 ) Income available to common shareholders $ 44,869 $ 44,418 $ 86,706 $ 84,359 Weighted-average common shares outstanding – basic 51,659 51,140 51,590 51,037 Basic earnings per share $ 0.87 $ 0.87 $ 1.68 $ 1.65 Net income $ 45,015 $ 44,606 $ 86,961 $ 84,712 Income attributable to unvested stock-based compensation awards (146 ) (188 ) (255 ) (353 ) Income available to common shareholders $ 44,869 $ 44,418 $ 86,706 $ 84,359 Weighted-average common shares outstanding – basic 51,659 51,140 51,590 51,037 Assumed exercise of stock options 529 583 535 576 Weighted-average common shares outstanding – diluted 52,188 51,723 52,125 51,613 Diluted earnings per share $ 0.86 $ 0.86 $ 1.66 $ 1.63

COMMITMENTS, CONTINGENT LIABI_2

COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Tables)	6 Months Ended
	Jun. 30, 2019
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS [Abstract]
Off Balance Sheet Financial Instruments Contract Amounts	The contract amounts of commitments and contingencies are as follows: (000's omitted) June 30, 2019 December 31, 2018 Commitments to extend credit $ 964,897 $ 1,134,576 Standby letters of credit 35,496 33,169 Total $ 1,000,393 $ 1,167,745

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2019
FAIR VALUE [Abstract]
Fair Value Measured on a Recurring Basis	A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis. There were no transfers between any of the levels for the periods presented. June 30, 2019 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,339,593 $ 117,485 $ 0 $ 1,457,078 Obligations of state and political subdivisions 0 439,697 0 439,697 Government agency mortgage-backed securities 0 397,195 0 397,195 Corporate debt securities 0 2,554 0 2,554 Government agency collateralized mortgage obligations 0 62,514 0 62,514 Total available-for-sale investment securities 1,339,593 1,019,445 0 2,359,038 Equity securities 450 0 0 450 Interest rate swap agreements asset 0 1,009 0 1,009 Interest rate swap agreements liability 0 (757 ) 0 (757 ) Total $ 1,340,043 $ 1,019,697 $ 0 $ 2,359,740 December 31, 2018 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,896,931 $ 126,822 $ 0 $ 2,023,753 Obligations of state and political subdivisions 0 459,154 0 459,154 Government agency mortgage-backed securities 0 382,477 0 382,477 Corporate debt securities 0 2,546 0 2,546 Government agency collateralized mortgage obligations 0 68,119 0 68,119 Total available-for-sale investment securities 1,896,931 1,039,118 0 2,936,049 Equity securities 432 0 0 432 Mortgage loans held for sale 0 83 0 83 Interest rate swap agreements asset 0 793 0 793 Interest rate swap agreements liability 0 (742 ) 0 (742 ) Total $ 1,897,363 $ 1,039,252 $ 0 $ 2,936,615
Assets and Liabilities Measured on a Non-Recurring Basis	The fair value information of assets and liabilities measured on a non-recurring basis presented below is not as of the period-end, but rather as of the date the fair value adjustment was recorded closest to the date presented. June 30, 2019 December 31, 2018 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Impaired loans $ 0 $ 0 $ 2,831 $ 2,831 $ 0 $ 0 $ 1,102 $ 1,102 Other real estate owned 0 0 1,736 1,736 0 0 1,320 1,320 Total $ 0 $ 0 $ 4,567 $ 4,567 $ 0 $ 0 $ 2,422 $ 2,422
Significant Unobservable Inputs, Fair Value Valuation Techniques	The Company determines fair values based on quoted market values, where available, estimates of present values, or other valuation techniques. Those techniques are significantly affected by the assumptions used, including, but not limited to, the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in immediate settlement of the instrument. The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis are as follows: (000's omitted) Fair Value at June 30, 2019 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Range (Weighted Average) Impaired loans $ 2,831 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 40.4% (35.0 %) Other real estate owned 1,736 Fair value of collateral Estimated cost of disposal/market adjustment 6.2% - 77.4% (24.1 %) (000's omitted) Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Range (Weighted Average) Impaired loans $ 1,102 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 35.4% (28.8 %) Other real estate owned 1,320 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 69.3% (23.8 %)
Carrying Amounts and Estimated Fair Values of Other Financial Instruments	Certain financial instruments and all nonfinancial instruments are excluded from fair value disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company’s other financial instruments that are not accounted for at fair value at June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 December 31, 2018 (000's omitted) Carrying Value Fair Value Carrying Value Fair Value Financial assets: Net loans $ 6,234,760 $ 6,349,252 $ 6,231,837 $ 6,247,939 Financial liabilities: Deposits 8,488,205 8,481,874 8,322,371 8,308,765 Short-term borrowings 0 0 54,400 54,400 Securities sold under agreement to repurchase, short-term 142,359 142,359 259,367 259,367 Other long-term debt 1,931 1,922 1,976 1,921 Subordinated debt held by unconsolidated subsidiary trusts 97,939 97,939 97,939 97,939

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2019
DERIVATIVE INSTRUMENTS [Abstract]
Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges	As of June 30, 2019, the following amounts were recorded in the consolidated statement of condition related to cumulative basis adjustments for fair value hedges: (000’s omitted) Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets Line Item in the Consolidated Statement of Condition in Which the Hedged Item Is Included June 30, 2019 June 30, 2019 Loans $ 6,475 $ (252 )
Fair Value of Derivative Instruments	Fair values of derivative instruments as of June 30, 2019 are as follows: (000’s omitted) June 30, 2019 Derivative Assets Derivative Liabilities Consolidated Statement of Condition Location Fair Value Consolidated Statement of Condition Location Fair Value Derivatives designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets $ 252 Derivatives not designated as hedging instruments under Subtopic 815-20 Interest rate swaps Other assets 757 Accrued interest and other liabilities $ 757 Total derivatives $ 1,009 $ 757

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2019
SEGMENT INFORMATION [Abstract]
Segment Reporting Information by Segment	Information about reportable segments and reconciliation of the information to the consolidated financial statements follows: (000's omitted) Banking Employee Benefit Services All Other Eliminations Consolidated Total Three Months Ended June 30, 2019 Net interest income $ 88,127 $ 131 $ 42 $ 0 $ 88,300 Provision for loan losses 1,400 0 0 0 1,400 Noninterest revenues 21,921 24,839 15,159 (1,213 ) 60,706 Amortization of intangible assets 1,375 1,669 860 0 3,904 Acquisition expenses 1,194 0 0 0 1,194 Other operating expenses 60,578 15,405 11,308 (1,213 ) 86,078 Income before income taxes $ 45,501 $ 7,896 $ 3,033 $ 0 $ 56,430 Assets $ 10,534,555 $ 206,178 $ 72,862 $ (68,207 ) $ 10,745,388 Goodwill $ 629,916 $ 83,275 $ 20,312 $ 0 $ 733,503 Core deposit intangibles & Other intangibles $ 15,738 $ 41,107 $ 10,167 $ 0 $ 67,012 Three Months Ended June 30, 2018 Net interest income $ 86,723 $ 93 $ 30 $ 0 $ 86,846 Provision for loan losses 2,448 0 0 0 2,448 Noninterest revenues 20,040 23,051 14,168 (700 ) 56,559 Amortization of intangible assets 1,635 1,989 931 0 4,555 Acquisition expenses 65 0 6 0 71 Other operating expenses 57,464 14,204 10,518 (700 ) 81,486 Income before income taxes $ 45,151 $ 6,951 $ 2,743 $ 0 $ 54,845 Assets $ 10,415,083 $ 207,114 $ 64,560 $ (53,663 ) $ 10,633,094 Goodwill $ 629,916 $ 83,275 $ 20,288 $ 0 $ 733,479 Core deposit intangibles & Other intangibles $ 21,646 $ 48,484 $ 12,518 $ 0 $ 82,648 (000's omitted) Banking Employee Benefit Services All Other Eliminations Consolidated Total Six Months Ended June 30, 2019 Net interest income $ 174,842 $ 239 $ 78 $ 0 $ 175,159 Provision for loan losses 3,822 0 0 0 3,822 Noninterest revenues 39,269 49,509 29,606 (1,982 ) 116,402 Amortization of intangible assets 2,858 3,438 1,738 0 8,034 Acquisition expenses 1,728 0 0 0 1,728 Other operating expenses 120,347 29,684 22,017 (1,982 ) 170,066 Income before income taxes $ 85,356 $ 16,626 $ 5,929 $ 0 $ 107,911 Six Months Ended June 30, 2018 Net interest income $ 171,253 $ 163 $ 54 $ 0 $ 171,470 Provision for loan losses 6,127 0 0 0 6,127 Noninterest revenues 40,397 46,500 28,548 (1,395 ) 114,050 Amortization of intangible assets 3,379 4,077 1,897 0 9,353 Acquisition expenses 50 7 6 0 63 Other operating expenses 114,418 27,914 22,090 (1,395 ) 163,027 Income before income taxes $ 87,676 $ 14,665 $ 4,609 $ 0 $ 106,950

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Thousands	Jul. 12, 2019USD ($)CountyBranch	Jan. 02, 2019USD ($)	Apr. 02, 2018USD ($)	Jan. 02, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Acquisitions [Abstract]
Cash					$ 1,200	$ 1,737
Goodwill					$ 733,503	$ 733,479	$ 733,503
Kinderhook Bank Corp [Member] | Subsequent Event [Member]
Acquisitions [Abstract]
Cash	$ 93,400
Number of branch locations added upon merger | Branch	11
Kinderhook Bank Corp [Member] | Upstate New York [Member] | Subsequent Event [Member]
Acquisitions [Abstract]
Number of counties where the bank has facilities | County	5
Wealth Resources Network, Inc [Member]
Acquisitions [Abstract]
Cash		$ 1,200
Goodwill		0
Wealth Resources Network, Inc [Member] | Customer Lists [Member]
Acquisitions [Abstract]
Intangibles		$ 1,200
HR Consultants (SA), LLC [Member]
Acquisitions [Abstract]
Cash			$ 300
HR Consultants (SA), LLC [Member] | Customer Lists [Member]
Acquisitions [Abstract]
Intangibles			$ 300
Penna & Associates Agency, Inc. [Member]
Acquisitions [Abstract]
Cash				$ 800
Goodwill				300
Penna & Associates Agency, Inc. [Member] | Customer Lists [Member]
Acquisitions [Abstract]
Intangibles				300
Styles Bridges Associates [Member]
Acquisitions [Abstract]
Cash				700
Styles Bridges Associates [Member] | Customer Lists [Member]
Acquisitions [Abstract]
Intangibles				$ 700

ACQUISITIONS, Estimated Fair Va

ACQUISITIONS, Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		Jan. 02, 2019	Apr. 02, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Consideration paid [Abstract]
Cash				$ 1,200	$ 1,737
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract]
Goodwill				$ 733,503	$ 733,479	$ 733,503
Wealth Resources Network, Inc [Member]
Consideration paid [Abstract]
Cash		$ 1,200
Total net consideration paid		1,200
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract]
Cash and cash equivalents		0
Premises and equipment		0
Other assets		0
Other liabilities		0
Total identifiable assets, net		1,200
Goodwill		0
Wealth Resources Network, Inc [Member] | Other Intangibles [Member]
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract]
Intangibles		$ 1,200
Other [Member]
Consideration paid [Abstract]
Cash	[1]		$ 1,753
Total net consideration paid	[1]		1,753
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract]
Cash and cash equivalents	[1]		16
Premises and equipment	[1]		10
Other assets	[1]		105
Other liabilities	[1]		(31)
Total identifiable assets, net	[1]		1,443
Goodwill	[1]		310
Other [Member] | Other Intangibles [Member]
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract]
Intangibles	[1]		$ 1,343
[1]	Includes amounts related to the Styles Bridges, Penna, and HR Consultants acquisitions.

ACQUISITIONS, Intangible Asset,

ACQUISITIONS, Intangible Asset, Goodwill and Acquisition-related Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Summary of loans acquired [Abstract]
Merger and acquisition integration related (recoveries) expenses	$ 1,194	$ 71	$ 1,728	$ 63
Wealth Resources Network, Inc [Member] | Other Intangibles [Member]
Intangible Assets [Abstract]
Estimated useful life			8 years
Styles Bridges Associates [Member] | Other Intangibles [Member]
Intangible Assets [Abstract]
Estimated useful life			8 years
Penna & Associates Agency, Inc. [Member] | Other Intangibles [Member]
Intangible Assets [Abstract]
Estimated useful life			8 years
HR Consultants (SA), LLC [Member] | Other Intangibles [Member]
Intangible Assets [Abstract]
Estimated useful life			8 years

ACCOUNTING POLICIES (Details)

ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Contract Balances [Abstract]
Accounts receivable	$ 27,700	$ 26,400
Unbilled fee revenue	8,100	7,800
Unearned revenue	2,600	2,200
Recently Adopted Accounting Pronouncements [Abstract]
Right to use assets	37,650
Lease liability	$ 38,368
ASU 2016-02 [Member]
Recently Adopted Accounting Pronouncements [Abstract]
Right to use assets		34,200
Lease liability		$ 34,200

INVESTMENT SECURITIES, Availabl

INVESTMENT SECURITIES, Available-for-Sale Portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available-for-Sale Portfolio [Abstract]
Amortized cost	$ 2,322,697	$ 2,952,278
Gross unrealized gains	39,062	10,339
Gross unrealized losses	2,721	26,568
Fair value	2,359,038	2,936,049
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized cost	2,322,697
Fair value	2,359,038
U.S. Treasury and Agency Securities [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized cost	1,435,302	2,036,474
Gross unrealized gains	22,204	2,190
Gross unrealized losses	428	14,911
Fair value	1,457,078	2,023,753
Obligations of State and Political Subdivisions [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized cost	427,621	453,640
Gross unrealized gains	12,076	6,563
Gross unrealized losses	0	1,049
Fair value	439,697	459,154
Government Agency Mortgage-Backed Securities [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized cost	395,220	390,234
Gross unrealized gains	4,196	1,526
Gross unrealized losses	2,221	9,283
Fair value	397,195	382,477
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized cost	2,558	2,588
Gross unrealized gains	0	0
Gross unrealized losses	4	42
Fair value	2,554	2,546
Government Agency Collateralized Mortgage Obligations [Member]
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract]
Amortized cost	61,996	69,342
Gross unrealized gains	586	60
Gross unrealized losses	68	1,283
Fair value	$ 62,514	$ 68,119

INVESTMENT SECURITIES, Equity a

INVESTMENT SECURITIES, Equity and Other Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Equity and Other Securities [Abstract]
Amortized cost	$ 42,285	$ 44,678
Gross unrealized gains	949	950
Gross unrealized losses		19
Fair value	43,234	45,609
Equity Securities, at Fair Value [Abstract]
Amortized cost	251	251
Gross unrealized gains	199	200
Gross unrealized losses		19
Fair value	450	432
Federal Home Loan Bank Common Stock [Member]
Other Equity Securities, at Adjusted Cost [Abstract]
Amortized cost	6,251	8,768
Fair value	6,251	8,768
Federal Reserve Bank Common Stock [Member]
Other Equity Securities, at Adjusted Cost [Abstract]
Amortized cost	30,690	30,690
Fair value	30,690	30,690
Other Equity Securities [Member]
Other Equity Securities, at Adjusted Cost [Abstract]
Amortized cost	5,093	4,969
Gross unrealized gains	750	750
Fair value	$ 5,843	$ 5,719

INVESTMENT SECURITIES, Investme

INVESTMENT SECURITIES, Investment Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2019USD ($)Position	Dec. 31, 2018USD ($)Position
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract]
Less than 12 months | Position	6	169
12 months or longer | Position	176	384
Total | Position	182	553
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 4,551	$ 576,527
12 months or longer	402,781	1,584,618
Total	407,332	2,161,145
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract]
Less than 12 months	6	1,156
12 months or longer	2,715	25,412
Total	$ 2,721	$ 26,568
Equity and Other Securities, Continuous Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position		1
12 months or longer | Position		0
Total | Position		1
Equity and Other Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months		$ 82
12 months or longer		0
Total		82
Equity and Other Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses [Abstract]
Less than 12 months		19
12 months or longer		0
Total		$ 19
U.S. Treasury and Agency Securities [Member]
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract]
Less than 12 months | Position	0	7
12 months or longer | Position	19	64
Total | Position	19	71
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 0	$ 473,082
12 months or longer	188,692	1,213,276
Total	188,692	1,686,358
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract]
Less than 12 months	0	682
12 months or longer	428	14,229
Total	$ 428	$ 14,911
Obligations of State and Political Subdivisions [Member]
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract]
Less than 12 months | Position	0	118
12 months or longer | Position	1	97
Total | Position	1	215
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 0	$ 55,671
12 months or longer	516	51,753
Total	516	107,424
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract]
Less than 12 months	0	216
12 months or longer	0	833
Total	$ 0	$ 1,049
Government Agency Mortgage-Backed Securities [Member]
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract]
Less than 12 months | Position	6	43
12 months or longer | Position	142	181
Total | Position	148	224
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 4,551	$ 47,708
12 months or longer	192,786	253,931
Total	197,337	301,639
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract]
Less than 12 months	6	258
12 months or longer	2,215	9,025
Total	$ 2,221	$ 9,283
Corporate Debt Securities [Member]
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract]
Less than 12 months | Position	0	0
12 months or longer | Position	1	1
Total | Position	1	1
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 0	$ 0
12 months or longer	2,554	2,546
Total	2,554	2,546
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract]
Less than 12 months	0	0
12 months or longer	4	42
Total	$ 4	$ 42
Government Agency Collateralized Mortgage Obligations [Member]
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract]
Less than 12 months | Position	0	1
12 months or longer | Position	13	41
Total | Position	13	42
Available-for-Sale Securities, in Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months	$ 0	$ 66
12 months or longer	18,233	63,112
Total	18,233	63,178
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract]
Less than 12 months	0	0
12 months or longer	68	1,283
Total	$ 68	$ 1,283
Equity Securities, at Fair Value [Member]
Equity and Other Securities, Continuous Unrealized Loss Position, Number of Positions [Abstract]
Less than 12 months | Position		1
12 months or longer | Position		0
Total | Position		1
Equity and Other Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than 12 months		$ 82
12 months or longer		0
Total		82
Equity and Other Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses [Abstract]
Less than 12 months		19
12 months or longer		0
Total		$ 19

INVESTMENT SECURITIES, Amortize

INVESTMENT SECURITIES, Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract]
Due in one year or less	$ 76,679
Due after one through five years	1,489,433
Due after five years through ten years	143,339
Due after ten years	156,030
Subtotal	1,865,481
Amortized cost	2,322,697
Available-for-Sale, Debt Maturities, Fair Value [Abstract]
Due in one year or less	76,659
Due after one through five years	1,513,356
Due after five years through ten years	147,980
Due after ten years	161,334
Subtotal	1,899,329
Fair value	2,359,038
Government Agency Mortgage-Backed Securities [Member]
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract]
Without single maturity date	395,220
Amortized cost	395,220	$ 390,234
Available-for-Sale, Debt Maturities, Fair Value [Abstract]
Without single maturity date	397,195
Fair value	397,195	382,477
Government Agency Collateralized Mortgage Obligations [Member]
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract]
Without single maturity date	61,996
Amortized cost	61,996	69,342
Available-for-Sale, Debt Maturities, Fair Value [Abstract]
Without single maturity date	62,514
Fair value	$ 62,514	$ 68,119

INVESTMENT SECURITIES, Invest_2

INVESTMENT SECURITIES, Investment Securities Pledged as Collateral (Details) $ in Millions	Jun. 30, 2019USD ($)
U.S. Treasury Securities [Member] | Securities Sold under Agreements to Repurchase [Member]
Investment Securities Pledged as Collateral [Abstract]
Investment securities pledged to collateralize certain deposits and borrowings	$ 149.9

INVESTMENT SECURITIES, Proceeds

INVESTMENT SECURITIES, Proceeds from Sales of Securities (Details) - U.S. Treasury Securities [Member] $ in Millions	6 Months Ended
	Jun. 30, 2019USD ($)
Proceeds from sales of securities [Abstract]
Proceeds from sales of securities	$ 590.2
Gross realized gains	5
Gross realized losses	$ 0.1

LOANS, Loan Summary (Details)

LOANS, Loan Summary (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	$ 6,284,070		$ 6,281,121
Allowance for loan losses	(49,310)	$ (49,107)	(49,284)	$ (49,618)	$ (48,103)	$ (47,583)
Net loans	6,234,760		6,231,837
Credit impaired acquired loans, total balance due	5,600		7,400
Accretable discount related to credit impaired acquired loans [Roll forward]
Beginning Balance	437
Accretion recognized, year-to-date	(133)
Net reclassification between accretable and non-accretable	76
Ending Balance	380
Business Lending [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	$ 2,395,684		2,396,977
Consumer Mortgage [Member] | Minimum [Member]
Loans receivable, net [Abstract]
Typical contract term	10 years
Consumer Mortgage [Member] | Maximum [Member]
Loans receivable, net [Abstract]
Typical contract term	30 years
Home Equity [Member] | Maximum [Member]
Loans receivable, net [Abstract]
Typical contract term	30 years
Commercial Portfolio Segment [Member] | Business Lending [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	$ 2,395,684		2,396,977
Commercial Portfolio Segment [Member] | Consumer Mortgage [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(10,763)	(10,317)	(10,124)	(10,473)	(10,382)	(10,465)
Residential Portfolio Segment [Member] | Business Lending [Member]
Loans receivable, net [Abstract]
Allowance for loan losses	(17,769)	(18,271)	(18,522)	(18,439)	(17,607)	(17,257)
Residential Portfolio Segment [Member] | Consumer Mortgage [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	2,255,782		2,235,408
Consumer Portfolio Segment [Member] | Consumer Indirect [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	1,082,834		1,083,207
Allowance for loan losses	(14,345)	(14,251)	(14,366)	(14,424)	(13,698)	(13,468)
Consumer Portfolio Segment [Member] | Consumer Direct [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	178,151		178,820
Allowance for loan losses	(3,184)	(3,056)	(3,095)	(3,164)	(2,984)	(3,039)
Consumer Portfolio Segment [Member] | Home Equity [Member]
Loans receivable, net [Abstract]
Gross loans, including deferred origination costs	371,619		386,709
Allowance for loan losses	$ (2,103)	$ (2,067)	$ (2,144)	$ (2,015)	$ (2,040)	$ (2,107)

LOANS, Credit Quality By Past D

LOANS, Credit Quality By Past Due Status (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Aged analysis of the company's loans [Abstract]
Total loans		$ 6,284,070	$ 6,281,121
Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		2,863	2,106
Nonaccrual		15,529	16,182
Total past due		45,548	53,387
Current		5,087,231	4,974,597
Total loans		5,132,779	5,027,984
Legacy Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		27,156	35,099
Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		184	349
Nonaccrual		5,884	6,362
Total past due		9,168	9,332
Acquired impaired	[1]	3,647	5,446
Current		1,138,476	1,238,359
Total loans		1,151,291	1,253,137
Acquired Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		3,100	2,621
Business Lending [Member]
Aged analysis of the company's loans [Abstract]
Total loans		2,395,684	2,396,977
Business Lending [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		1,678,604	1,618,827
Business Lending [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		717,080	778,150
Consumer Mortgage [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		1,897,647	1,848,450
Consumer Mortgage [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		358,135	386,958
Consumer Indirect [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		1,074,947	1,072,392
Consumer Indirect [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		7,887	10,815
Consumer Direct [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		175,876	175,774
Consumer Direct [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		2,275	3,046
Home Equity [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		305,705	312,541
Home Equity [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
Total loans		65,914	74,168
Commercial Portfolio Segment [Member] | Business Lending [Member]
Aged analysis of the company's loans [Abstract]
Total loans		2,395,684	2,396,977
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		491	179
Nonaccrual		4,086	4,872
Total past due		8,835	10,312
Current		1,669,769	1,608,515
Total loans		1,678,604	1,618,827
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		4,258	5,261
Commercial Portfolio Segment [Member] | Business Lending [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		0	0
Nonaccrual		3,294	3,498
Total past due		4,313	4,472
Acquired impaired	[1]	3,647	5,446
Current		709,120	768,232
Total loans		717,080	778,150
Commercial Portfolio Segment [Member] | Business Lending [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		1,019	974
Residential Portfolio Segment [Member] | Consumer Mortgage [Member]
Aged analysis of the company's loans [Abstract]
Total loans		2,255,782	2,235,408
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		2,082	1,393
Nonaccrual		10,079	9,872
Total past due		21,836	23,733
Current		1,875,811	1,824,717
Total loans		1,897,647	1,848,450
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		9,675	12,468
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		80	232
Nonaccrual		2,072	2,390
Total past due		3,434	3,463
Acquired impaired	[1]	0	0
Current		354,701	383,495
Total loans		358,135	386,958
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		1,282	841
Consumer Portfolio Segment [Member] | Consumer Indirect [Member]
Aged analysis of the company's loans [Abstract]
Total loans		1,082,834	1,083,207
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		157	258
Nonaccrual		0	0
Total past due		11,130	14,867
Current		1,063,817	1,057,525
Total loans		1,074,947	1,072,392
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		10,973	14,609
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		32	34
Nonaccrual		0	0
Total past due		65	112
Acquired impaired	[1]	0	0
Current		7,822	10,703
Total loans		7,887	10,815
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		33	78
Consumer Portfolio Segment [Member] | Consumer Direct [Member]
Aged analysis of the company's loans [Abstract]
Total loans		178,151	178,820
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		27	48
Nonaccrual		0	0
Total past due		1,144	1,826
Current		174,732	173,948
Total loans		175,876	175,774
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		1,117	1,778
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		4	4
Nonaccrual		0	0
Total past due		44	119
Acquired impaired	[1]	0	0
Current		2,231	2,927
Total loans		2,275	3,046
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		40	115
Consumer Portfolio Segment [Member] | Home Equity [Member]
Aged analysis of the company's loans [Abstract]
Total loans		371,619	386,709
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		106	228
Nonaccrual		1,364	1,438
Total past due		2,603	2,649
Current		303,102	309,892
Total loans		305,705	312,541
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		1,133	983
Consumer Portfolio Segment [Member] | Home Equity [Member] | Acquired Loans [Member]
Aged analysis of the company's loans [Abstract]
90 + days past due and still accruing		68	79
Nonaccrual		518	474
Total past due		1,312	1,166
Acquired impaired	[1]	0	0
Current		64,602	73,002
Total loans		65,914	74,168
Consumer Portfolio Segment [Member] | Home Equity [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member]
Aged analysis of the company's loans [Abstract]
Total past due		$ 726	$ 613
[1]	Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30.  As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans.

LOANS, Amount of Business Lendi

LOANS, Amount of Business Lending Loans by Credit Quality Category (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Business Lending Loans by Credit Quality Category [Abstract]
Loans	$ 6,284,070	$ 6,281,121
Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	5,132,779	5,027,984
Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	1,151,291	1,253,137
Business Lending [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	2,395,684	2,396,977
Business Lending [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	1,678,604	1,618,827
Business Lending [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	717,080	778,150
Business Lending [Member] | Pass [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	2,136,870	2,141,830
Business Lending [Member] | Pass [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	1,510,549	1,439,337
Business Lending [Member] | Pass [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	626,321	702,493
Business Lending [Member] | Special Mention [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	145,842	145,172
Business Lending [Member] | Special Mention [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	87,398	105,065
Business Lending [Member] | Special Mention [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	58,444	40,107
Business Lending [Member] | Classified [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	109,325	102,950
Business Lending [Member] | Classified [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	80,657	74,425
Business Lending [Member] | Classified [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	28,668	28,525
Business Lending [Member] | Doubtful [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	0	1,579
Business Lending [Member] | Doubtful [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	0	0
Business Lending [Member] | Doubtful [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	0	1,579
Business Lending [Member] | Acquired Impaired [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	3,647	5,446
Business Lending [Member] | Acquired Impaired [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	0	0
Business Lending [Member] | Acquired Impaired [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	3,647	5,446
All Other Loans [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	3,454,175	3,409,157
All Other Loans [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	434,211	474,987
All Other Loans [Member] | Performing [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	3,440,360	3,395,920
All Other Loans [Member] | Performing [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	431,437	471,774
All Other Loans [Member] | Nonperforming [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	13,815	13,237
All Other Loans [Member] | Nonperforming [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	2,774	3,213
Consumer Mortgage [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	1,897,647	1,848,450
Consumer Mortgage [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	358,135	386,958
Consumer Mortgage [Member] | Performing [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	1,885,486	1,837,185
Consumer Mortgage [Member] | Performing [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	355,983	384,336
Consumer Mortgage [Member] | Nonperforming [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	12,161	11,265
Consumer Mortgage [Member] | Nonperforming [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	2,152	2,622
Consumer Indirect [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	1,074,947	1,072,392
Consumer Indirect [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	7,887	10,815
Consumer Indirect [Member] | Performing [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	1,074,790	1,072,134
Consumer Indirect [Member] | Performing [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	7,855	10,781
Consumer Indirect [Member] | Nonperforming [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	157	258
Consumer Indirect [Member] | Nonperforming [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	32	34
Consumer Direct [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	175,876	175,774
Consumer Direct [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	2,275	3,046
Consumer Direct [Member] | Performing [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	175,849	175,726
Consumer Direct [Member] | Performing [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	2,271	3,042
Consumer Direct [Member] | Nonperforming [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	27	48
Consumer Direct [Member] | Nonperforming [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	4	4
Home Equity [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	305,705	312,541
Home Equity [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	65,914	74,168
Home Equity [Member] | Performing [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	304,235	310,875
Home Equity [Member] | Performing [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	65,328	73,615
Home Equity [Member] | Nonperforming [Member] | Legacy Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	1,470	1,666
Home Equity [Member] | Nonperforming [Member] | Acquired Loans [Member]
Business Lending Loans by Credit Quality Category [Abstract]
Loans	$ 586	$ 553

LOANS, Summary of Impaired Loan

LOANS, Summary of Impaired Loans, Excluding Purchased Impaired (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Impaired loans [Abstract]
Loans with allowance allocation	$ 0	$ 3,956
Loans without allowance allocation	5,096	2,230
Carrying balance	5,096	6,186
Contractual balance	12,021	12,078
Specifically allocated allowance	$ 0	$ 956

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructurings (TDRs) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)Loan	Jun. 30, 2018USD ($)Loan	Jun. 30, 2019USD ($)Loan	Jun. 30, 2018USD ($)Loan	Dec. 31, 2018USD ($)Loan
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	228		228		218
TDRs, amount	$ 6,081		$ 6,081		$ 5,525
Loans modified in TDR during the year, number | Loan	15	16	32	22
Loans modified in TDR during the year, amount	$ 643	$ 620	$ 1,296	$ 737
Maximum [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
Threshold balance of TDR loans collectively included in general loan loss allocation and qualitative review	$ 500		$ 500
Nonaccrual [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	69		69		62
TDRs, amount	$ 2,841		$ 2,841		$ 2,388
Accruing [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	159		159		156
TDRs, amount	$ 3,240		$ 3,240		$ 3,137
Commercial Portfolio Segment [Member] | Minimum [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
Threshold balance of loans individually evaluated for impairment	$ 500		$ 500
Commercial Portfolio Segment [Member] | Business Lending [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	7		7		6
TDRs, amount	$ 475		$ 475		$ 327
Loans modified in TDR during the year, number | Loan	2	0	2	1
Loans modified in TDR during the year, amount	$ 250	$ 0	$ 250	$ 93
Commercial Portfolio Segment [Member] | Business Lending [Member] | Nonaccrual [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	4		4		4
TDRs, amount	$ 264		$ 264		$ 162
Commercial Portfolio Segment [Member] | Business Lending [Member] | Accruing [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	3		3		2
TDRs, amount	$ 211		$ 211		$ 165
Residential Portfolio Segment [Member] | Consumer Mortgage [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	99		99		92
TDRs, amount	$ 4,187		$ 4,187		$ 3,755
Loans modified in TDR during the year, number | Loan	4	4	11	4
Loans modified in TDR during the year, amount	$ 283	$ 452	$ 861	$ 452
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Nonaccrual [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	51		51		46
TDRs, amount	$ 2,334		$ 2,334		$ 1,986
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Accruing [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	48		48		46
TDRs, amount	$ 1,853		$ 1,853		$ 1,769
Consumer Portfolio Segment [Member] | Consumer Indirect [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	75		75		77
TDRs, amount	$ 786		$ 786		$ 857
Loans modified in TDR during the year, number | Loan	4	8	12	11
Loans modified in TDR during the year, amount	$ 33	$ 70	$ 98	$ 92
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Nonaccrual [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	0		0		0
TDRs, amount	$ 0		$ 0		$ 0
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Accruing [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	75		75		77
TDRs, amount	$ 786		$ 786		$ 857
Consumer Portfolio Segment [Member] | Consumer Direct [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	22		22		22
TDRs, amount	$ 74		$ 74		$ 71
Loans modified in TDR during the year, number | Loan	2	3	3	5
Loans modified in TDR during the year, amount	$ 6	$ 12	$ 12	$ 14
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Nonaccrual [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	0		0		0
TDRs, amount	$ 0		$ 0		$ 0
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Accruing [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	22		22		22
TDRs, amount	$ 74		$ 74		$ 71
Consumer Portfolio Segment [Member] | Home Equity [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	25		25		21
TDRs, amount	$ 559		$ 559		$ 515
Loans modified in TDR during the year, number | Loan	3	1	4	1
Loans modified in TDR during the year, amount	$ 71	$ 86	$ 75	$ 86
Consumer Portfolio Segment [Member] | Home Equity [Member] | Nonaccrual [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	14		14		12
TDRs, amount	$ 243		$ 243		$ 240
Consumer Portfolio Segment [Member] | Home Equity [Member] | Accruing [Member]
Troubled Debt Restructurings (TDRs) [Abstract]
TDRs, number | Loan	11		11		9
TDRs, amount	$ 316		$ 316		$ 275

LOANS, Allowance for Loan Losse

LOANS, Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Allowance for loan losses [Roll Forward]
Beginning balance	$ 49,107	$ 48,103	$ 49,284	$ 47,583
Charge-offs	(2,871)	(2,622)	(6,772)	(7,369)
Recoveries	1,674	1,689	2,976	3,277
Provision	1,400	2,448	3,822	6,127
Ending balance	49,310	49,618	49,310	49,618
Acquired Impaired [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	155	308	33	147
Charge-offs	0	(323)	0	(367)
Recoveries	0	0	0	0
Provision	0	48	122	253
Ending balance	155	33	155	33
Residential Portfolio Segment [Member] | Business Lending [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	18,271	17,607	18,522	17,257
Charge-offs	(253)	(260)	(1,469)	(1,928)
Recoveries	169	114	303	312
Provision	(418)	978	413	2,798
Ending balance	17,769	18,439	17,769	18,439
Commercial Portfolio Segment [Member] | Consumer Mortgage [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	10,317	10,382	10,124	10,465
Charge-offs	(587)	(245)	(840)	(444)
Recoveries	14	54	36	62
Provision	1,019	282	1,443	390
Ending balance	10,763	10,473	10,763	10,473
Consumer Portfolio Segment [Member] | Consumer Indirect [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	14,251	13,698	14,366	13,468
Charge-offs	(1,482)	(1,383)	(3,305)	(3,667)
Recoveries	1,239	1,347	2,201	2,498
Provision	337	762	1,083	2,125
Ending balance	14,345	14,424	14,345	14,424
Consumer Portfolio Segment [Member] | Consumer Direct [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	3,056	2,984	3,095	3,039
Charge-offs	(445)	(364)	(980)	(860)
Recoveries	221	167	400	389
Provision	352	377	669	596
Ending balance	3,184	3,164	3,184	3,164
Consumer Portfolio Segment [Member] | Home Equity [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	2,067	2,040	2,144	2,107
Charge-offs	(104)	(47)	(178)	(103)
Recoveries	31	7	36	16
Provision	109	15	101	(5)
Ending balance	2,103	2,015	2,103	2,015
Unallocated Financing Receivables [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	990	1,084	1,000	1,100
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision	1	(14)	(9)	(30)
Ending balance	$ 991	$ 1,070	$ 991	$ 1,070

GOODWILL AND IDENTIFIABLE INT_3

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Identifiable Intangible Assets [Abstract]
Gross carrying amount	$ 151,718	$ 150,518
Accumulated amortization	(84,706)	(76,672)
Net carrying amount	67,012	73,846
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract]
Jul - Dec 2019	7,529
2020	12,956
2021	11,053
2022	9,483
2023	7,947
Thereafter	18,044
Net carrying amount	67,012	73,846
Components of goodwill [Abstract]
Goodwill, beginning of period	738,327
Goodwill, activity	0
Goodwill, end of period	738,327
Accumulated impairment, beginning of period	(4,824)
Accumulated impairment, activity	0
Accumulated impairment, end of period	(4,824)
Goodwill, net, beginning of period	733,503
Goodwill, net, activity	0
Goodwill, net, end of period	733,503
Core Deposit Intangibles [Member]
Identifiable Intangible Assets [Abstract]
Gross carrying amount	62,902	62,902
Accumulated amortization	(47,164)	(44,306)
Net carrying amount	15,738	18,596
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract]
Net carrying amount	15,738	18,596
Other Intangibles [Member]
Identifiable Intangible Assets [Abstract]
Gross carrying amount	88,816	87,616
Accumulated amortization	(37,542)	(32,366)
Net carrying amount	51,274	55,250
Estimated aggregate amortization expense for each of five succeeding fiscal years [Abstract]
Net carrying amount	$ 51,274	$ 55,250

LEASES (Details)

LEASES (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)		Jun. 30, 2019USD ($)
Operating Leases [Abstract]
Term of option to terminate			1 year
Components of Lease Expense [Abstract]
Operating lease cost	$ 2,145		$ 4,262
Short-term lease cost	49	[1]	103	[1]
Total lease cost	2,194		4,365
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash outflows for operating leases			3,997
Right-of-use assets obtained in exchange for lease obligations [Abstract]
Operating leases			7,712
Operating leases [Abstract]
Operating lease right-of-use assets	37,650		37,650
Operating lease liabilities	$ 38,368		$ 38,368
Weighted average remaining lease term [Abstract]
Operating leases	6 years 10 months 24 days		6 years 10 months 24 days
Weighted average discount rate [Abstract]
Operating leases	3.10%		3.10%
Maturities of Lease Liabilities [Abstract]
Jul - Dec 2019	$ 4,351		$ 4,351
2020	8,284		8,284
2021	6,703		6,703
2022	5,407		5,407
2023	4,437		4,437
Thereafter	13,911		13,911
Total lease payments	43,093		43,093
Less imputed interest	(4,725)		(4,725)
Total	$ 38,368		$ 38,368
Operating lease that has not yet commenced [Abstract]
Lease term	5 years		5 years
Right-of-use assets	$ 1,300		$ 1,300
Lease liabilities	$ 1,300		$ 1,300
Minimum [Member]
Operating Leases [Abstract]
Remaining term of lease			1 year
Term of option to extend	1 year		1 year
Maximum [Member]
Operating Leases [Abstract]
Remaining term of lease			16 years
Term of option to extend	40 years		40 years
706 North Clinton, LLC [Member]
Operating leases [Abstract]
Operating lease right-of-use assets	$ 5,100		$ 5,100
Operating lease liabilities	$ 5,139		$ 5,139
Weighted average remaining lease term [Abstract]
Operating leases	10 years 4 months 24 days		10 years 4 months 24 days
Weighted average discount rate [Abstract]
Operating leases	3.67%		3.67%
Maturities of Lease Liabilities [Abstract]
Jul - Dec 2019	$ 295		$ 295
2020	591		591
2021	591		591
2022	591		591
2023	591		591
Thereafter	3,538		3,538
Total lease payments	6,197		6,197
Less imputed interest	(1,058)		(1,058)
Total	$ 5,139		$ 5,139
Membership interest	50.00%		50.00%
[1]	Short-term lease cost includes the cost of leases with terms of twelve months or less, excluding leases with terms of one month or less.

MANDATORILY REDEEMABLE PREFER_3

MANDATORILY REDEEMABLE PREFERRED SECURITIES (Details) $ in Millions	6 Months Ended
	Jun. 30, 2019USD ($)Trust
Mandatorily Redeemable Preferred Securities [Abstract]
Number of unconsolidated subsidiary business trusts owned | Trust	2
Business Trusts [Member]
Mandatorily Redeemable Preferred Securities [Abstract]
Percent ownership of unconsolidated subsidiary trusts	100.00%
Preferred Debt [Member] | Community Capital Trust IV [Member]
Terms of preferred securities for each trust [Abstract]
Issuance date	Dec. 8, 2006
Par amount	$ 75
Variable interest rate basis	3 month LIBOR
Effective interest rate	4.06%
Maturity date	Dec. 15, 2036
Call price	Par
Preferred Debt [Member] | Community Capital Trust IV [Member] | LIBOR [Member]
Terms of preferred securities for each trust [Abstract]
Term of variable rate	3 months
Variable interest rate, basis spread	1.65%
Preferred Debt [Member] | MBVT Statutory Trust I [Member]
Terms of preferred securities for each trust [Abstract]
Issuance date	Dec. 15, 2004
Par amount	$ 20.6
Variable interest rate basis	3 month LIBOR
Effective interest rate	4.36%
Maturity date	Dec. 31, 2034
Call price	Par
Preferred Debt [Member] | MBVT Statutory Trust I [Member] | LIBOR [Member]
Terms of preferred securities for each trust [Abstract]
Term of variable rate	3 months
Variable interest rate, basis spread	1.95%

BENEFIT PLANS (Details)

BENEFIT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Pension Benefits [Member]
Net periodic benefit cost [Abstract]
Service cost	$ 1,270		$ 1,121	$ 2,540	$ 2,242
Interest cost	1,565		1,415	3,133	2,829
Expected return on plan assets	(3,578)		(3,705)	(7,155)	(7,410)
Amortization of unrecognized net loss	643		298	1,284	596
Amortization of prior service cost	16		(83)	31	(165)
Net periodic benefit	(84)		(954)	(167)	(1,908)
Pension Benefits [Member] | Nonqualified Plan [Member] | Unfunded Plan [Member]
Pension Plans [Abstract]
Unfunded initial projected benefit obligation	800			800
Contribution made to defined benefit pension plan by employer		$ 7,300
Post-retirement Benefits [Member]
Net periodic benefit cost [Abstract]
Service cost	0		0	0	0
Interest cost	18		17	35	34
Expected return on plan assets	0		0	0	0
Amortization of unrecognized net loss	9		5	19	10
Amortization of prior service cost	(45)		(44)	(89)	(89)
Net periodic benefit	$ (18)		$ (22)	$ (35)	$ (45)

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
EARNINGS PER SHARE [Abstract]
Weighted-average anti-dilutive stock options outstanding (in shares)	500,000	400,000	500,000	400,000
Basic earnings per share [Abstract]
Net income	$ 45,015	$ 44,606	$ 86,961	$ 84,712
Income attributable to unvested stock-based compensation awards	(146)	(188)	(255)	(353)
Income available to common shareholders	$ 44,869	$ 44,418	$ 86,706	$ 84,359
Weighted-average common shares outstanding - basic (in shares)	51,659,000	51,140,000	51,590,000	51,037,000
Basic earnings per share (in dollars per share)	$ 0.87	$ 0.87	$ 1.68	$ 1.65
Diluted earnings per share [Abstract]
Net income	$ 45,015	$ 44,606	$ 86,961	$ 84,712
Income attributable to unvested stock-based compensation awards	(146)	(188)	(255)	(353)
Income available to common shareholders	$ 44,869	$ 44,418	$ 86,706	$ 84,359
Weighted-average common shares outstanding - basic (in shares)	51,659,000	51,140,000	51,590,000	51,037,000
Assumed exercise of stock options (in shares)	529,000	583,000	535,000	576,000
Weighted-average common shares outstanding - diluted (in shares)	52,188,000	51,723,000	52,125,000	51,613,000
Diluted earnings per share (in dollars per share)	$ 0.86	$ 0.86	$ 1.66	$ 1.63
Stock Repurchase Program [Abstract]
Number of common shares authorized to be repurchased (in shares)					2,500,000	2,500,000
Number of common shares repurchased (in shares)			0	0

COMMITMENTS, CONTINGENT LIABI_3

COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Commitments, Contingent Liabilities and Restrictions [Abstract]
Contract amount of commitments and contingencies	$ 1,000,393	$ 1,167,745
Minimum [Member]
Commitments, Contingent Liabilities and Restrictions [Abstract]
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability	0
Maximum [Member]
Commitments, Contingent Liabilities and Restrictions [Abstract]
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability	1,000
Commitments to Extend Credit [Member]
Commitments, Contingent Liabilities and Restrictions [Abstract]
Contract amount of commitments and contingencies	964,897	1,134,576
Standby Letters of Credit [Member]
Commitments, Contingent Liabilities and Restrictions [Abstract]
Contract amount of commitments and contingencies	$ 35,496	$ 33,169

FAIR VALUE, Financial Assets an

FAIR VALUE, Financial Assets and Liabilities Accounted for at Fair Value On a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	$ 2,359,038
Equity securities	450	$ 432
U.S. Treasury and Agency Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	1,457,078	2,023,753
Obligations of State and Political Subdivisions [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	439,697	459,154
Government Agency Mortgage-Backed Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	397,195	382,477
Corporate Debt Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	2,554	2,546
Government Agency Collateralized Mortgage Obligations [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	62,514	68,119
Recurring [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	2,359,038	2,936,049
Equity securities	450	432
Mortgage loans held for sale		83
Total	2,359,740	2,936,615
Recurring [Member] | Interest Rate Swap Agreements [Member]
Available-for-sale investment securities [Abstract]
Derivative asset	1,009	793
Derivative liability	(757)	(742)
Recurring [Member] | U.S. Treasury and Agency Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	1,457,078	2,023,753
Recurring [Member] | Obligations of State and Political Subdivisions [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	439,697	459,154
Recurring [Member] | Government Agency Mortgage-Backed Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	397,195	382,477
Recurring [Member] | Corporate Debt Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	2,554	2,546
Recurring [Member] | Government Agency Collateralized Mortgage Obligations [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	62,514	68,119
Recurring [Member] | Level 1 [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	1,339,593	1,896,931
Equity securities	450	432
Mortgage loans held for sale		0
Total	1,340,043	1,897,363
Recurring [Member] | Level 1 [Member] | Interest Rate Swap Agreements [Member]
Available-for-sale investment securities [Abstract]
Derivative asset	0	0
Derivative liability	0	0
Recurring [Member] | Level 1 [Member] | U.S. Treasury and Agency Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	1,339,593	1,896,931
Recurring [Member] | Level 1 [Member] | Obligations of State and Political Subdivisions [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Recurring [Member] | Level 1 [Member] | Government Agency Mortgage-Backed Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Recurring [Member] | Level 1 [Member] | Corporate Debt Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Recurring [Member] | Level 1 [Member] | Government Agency Collateralized Mortgage Obligations [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Recurring [Member] | Level 2 [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	1,019,445	1,039,118
Equity securities	0	0
Mortgage loans held for sale		83
Total	1,019,697	1,039,252
Mortgage loans held for sale, at principal value	0	100
Recurring [Member] | Level 2 [Member] | Interest Rate Swap Agreements [Member]
Available-for-sale investment securities [Abstract]
Derivative asset	1,009	793
Derivative liability	(757)	(742)
Recurring [Member] | Level 2 [Member] | U.S. Treasury and Agency Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	117,485	126,822
Recurring [Member] | Level 2 [Member] | Obligations of State and Political Subdivisions [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	439,697	459,154
Recurring [Member] | Level 2 [Member] | Government Agency Mortgage-Backed Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	397,195	382,477
Recurring [Member] | Level 2 [Member] | Corporate Debt Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	2,554	2,546
Recurring [Member] | Level 2 [Member] | Government Agency Collateralized Mortgage Obligations [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	62,514	68,119
Recurring [Member] | Level 3 [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Equity securities	0	0
Mortgage loans held for sale		0
Total	0	0
Recurring [Member] | Level 3 [Member] | Interest Rate Swap Agreements [Member]
Available-for-sale investment securities [Abstract]
Derivative asset	0	0
Derivative liability	0	0
Recurring [Member] | Level 3 [Member] | U.S. Treasury and Agency Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Recurring [Member] | Level 3 [Member] | Obligations of State and Political Subdivisions [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Recurring [Member] | Level 3 [Member] | Government Agency Mortgage-Backed Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Recurring [Member] | Level 3 [Member] | Corporate Debt Securities [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	0	0
Recurring [Member] | Level 3 [Member] | Government Agency Collateralized Mortgage Obligations [Member]
Available-for-sale investment securities [Abstract]
Available-for-sale investment securities	$ 0	$ 0

FAIR VALUE, Assets and Liabilit

FAIR VALUE, Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Impaired loans	$ 2,831	$ 1,102
Other real estate owned	1,736	1,320
Valuation allowance	0	956
Mortgage Servicing Rights [Member]
Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Valuation allowance	0
Non-recurring [Member]
Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Impaired loans	2,831	1,102
Other real estate owned	1,736	1,320
Total	4,567	2,422
Non-recurring [Member] | Level 1 [Member]
Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Impaired loans	0	0
Other real estate owned	0	0
Total	0	0
Non-recurring [Member] | Level 2 [Member]
Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Impaired loans	0	0
Other real estate owned	0	0
Total	0	0
Non-recurring [Member] | Level 3 [Member]
Assets and Liabilities Measured on Nonrecurring Basis [Abstract]
Impaired loans	2,831	1,102
Other real estate owned	1,736	1,320
Total	$ 4,567	$ 2,422

FAIR VALUE, Significant Unobser

FAIR VALUE, Significant Unobservable Inputs (Details) $ in Thousands	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract]
Impaired loans	$ 2,831	$ 1,102
Other real estate owned	$ 1,736	$ 1,320
Other real estate owned, Valuation Technique [Extensible List]	us-gaap:MarketApproachValuationTechniqueMember	us-gaap:MarketApproachValuationTechniqueMember
Other real estate owned, Measurement Input [Extensible List]	us-gaap:MeasurementInputCostToSellMember	us-gaap:MeasurementInputCostToSellMember
Minimum [Member]
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract]
Other real estate owned, measurement input	0.062	0.090
Minimum [Member] | Fair Value of Collateral [Member] | Estimated Cost of Disposal/Market Adjustment [Member]
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract]
Impaired loans, measurement input	0.090	0.090
Maximum [Member]
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract]
Other real estate owned, measurement input	0.774	0.693
Maximum [Member] | Fair Value of Collateral [Member] | Estimated Cost of Disposal/Market Adjustment [Member]
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract]
Impaired loans, measurement input	0.404	0.354
Weighted Average [Member]
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract]
Other real estate owned, measurement input	0.241	0.238
Weighted Average [Member] | Fair Value of Collateral [Member] | Estimated Cost of Disposal/Market Adjustment [Member]
Significant Unobservable Inputs used in determination of Fair Value of Assets Classified as Level 3 [Abstract]
Impaired loans, measurement input	0.350	0.288

FAIR VALUE, Carrying Amounts an

FAIR VALUE, Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Carrying Value [Member]
Financial assets [Abstract]
Net loans	$ 6,234,760	$ 6,231,837
Financial liabilities [Abstract]
Deposits	8,488,205	8,322,371
Short-term borrowings	0	54,400
Securities sold under agreement to repurchase, short-term	142,359	259,367
Other long-term debt	1,931	1,976
Subordinated debt held by unconsolidated subsidiary trusts	97,939	97,939
Fair Value [Member]
Financial assets [Abstract]
Net loans	6,349,252	6,247,939
Financial liabilities [Abstract]
Deposits	8,481,874	8,308,765
Short-term borrowings	0	54,400
Securities sold under agreement to repurchase, short-term	142,359	259,367
Other long-term debt	1,922	1,921
Subordinated debt held by unconsolidated subsidiary trusts	$ 97,939	$ 97,939

DERIVATIVE INSTRUMENTS (Details

DERIVATIVE INSTRUMENTS (Details) - Interest Rate Swap [Member] - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Derivative Instruments [Abstract]
Derivative, notional amount	$ 36.1	$ 37
Derivative weighted average receive rate	4.28%	4.34%
Derivative weighted average pay rate	3.83%	3.84%
Weighted average maturity period	4 years 10 months 24 days	5 years 6 months
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Derivative Instruments [Abstract]
Derivative, notional amount	$ 6.2	$ 6.6
Derivative weighted average receive rate	2.89%	2.92%
Derivative weighted average pay rate	3.11%	3.11%
Weighted average maturity period	14 years	14 years 6 months

DERIVATIVE INSTRUMENTS, Cumulat

DERIVATIVE INSTRUMENTS, Cumulative Basis Adjustments for Fair Value Hedges (Details) - Loans [Member] $ in Thousands	Jun. 30, 2019USD ($)
Cumulative Basis Adjustments for Fair Value Hedges [Abstract]
Carrying amount of the hedged assets	$ 6,475
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets	$ (252)

DERIVATIVE INSTRUMENTS, Fair Va

DERIVATIVE INSTRUMENTS, Fair Values of Derivative Instruments (Details) $ in Thousands	Jun. 30, 2019USD ($)
Fair Values of Derivative Instruments [Abstract]
Derivative assets	$ 1,009
Derivative liabilities	757
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member]
Fair Values of Derivative Instruments [Abstract]
Derivative assets	252
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Fair Values of Derivative Instruments [Abstract]
Derivative assets	757
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Accrued Interest and Other Liabilities [Member]
Fair Values of Derivative Instruments [Abstract]
Derivative liabilities	$ 757

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Information about reportable segments [Abstract]
Net interest income	$ 88,300	$ 86,846	$ 175,159	$ 171,470
Provision for loan losses	1,400	2,448	3,822	6,127
Noninterest revenues	60,706	56,559	116,402	114,050
Amortization of intangible assets	3,904	4,555	8,034	9,353
Acquisition expenses	1,194	71	1,728	63
Other operating expenses	86,078	81,486	170,066	163,027
Income before income taxes	56,430	54,845	107,911	106,950
Assets	10,745,388	10,633,094	10,745,388	10,633,094	$ 10,607,295
Goodwill	733,503	733,479	733,503	733,479	$ 733,503
Core deposit intangibles & Other intangibles	67,012	82,648	67,012	82,648
Eliminations [Member]
Information about reportable segments [Abstract]
Net interest income	0	0	0	0
Provision for loan losses	0	0	0	0
Noninterest revenues	(1,213)	(700)	(1,982)	(1,395)
Amortization of intangible assets	0	0	0	0
Acquisition expenses	0	0	0	0
Other operating expenses	(1,213)	(700)	(1,982)	(1,395)
Income before income taxes	0	0	0	0
Assets	(68,207)	(53,663)	(68,207)	(53,663)
Goodwill	0	0	0	0
Core deposit intangibles & Other intangibles	0	0	0	0
Banking [Member] | Operating Segments [Member]
Information about reportable segments [Abstract]
Net interest income	88,127	86,723	174,842	171,253
Provision for loan losses	1,400	2,448	3,822	6,127
Noninterest revenues	21,921	20,040	39,269	40,397
Amortization of intangible assets	1,375	1,635	2,858	3,379
Acquisition expenses	1,194	65	1,728	50
Other operating expenses	60,578	57,464	120,347	114,418
Income before income taxes	45,501	45,151	85,356	87,676
Assets	10,534,555	10,415,083	10,534,555	10,415,083
Goodwill	629,916	629,916	629,916	629,916
Core deposit intangibles & Other intangibles	15,738	21,646	15,738	21,646
Employee Benefit Services [Member] | Operating Segments [Member]
Information about reportable segments [Abstract]
Net interest income	131	93	239	163
Provision for loan losses	0	0	0	0
Noninterest revenues	24,839	23,051	49,509	46,500
Amortization of intangible assets	1,669	1,989	3,438	4,077
Acquisition expenses	0	0	0	7
Other operating expenses	15,405	14,204	29,684	27,914
Income before income taxes	7,896	6,951	16,626	14,665
Assets	206,178	207,114	206,178	207,114
Goodwill	83,275	83,275	83,275	83,275
Core deposit intangibles & Other intangibles	41,107	48,484	41,107	48,484
All Other [Member] | Operating Segments [Member]
Information about reportable segments [Abstract]
Net interest income	42	30	78	54
Provision for loan losses	0	0	0	0
Noninterest revenues	15,159	14,168	29,606	28,548
Amortization of intangible assets	860	931	1,738	1,897
Acquisition expenses	0	6	0	6
Other operating expenses	11,308	10,518	22,017	22,090
Income before income taxes	3,033	2,743	5,929	4,609
Assets	72,862	64,560	72,862	64,560
Goodwill	20,312	20,288	20,312	20,288
Core deposit intangibles & Other intangibles	$ 10,167	$ 12,518	$ 10,167	$ 12,518