ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2012

ACQUISITIONS [Abstract]

Estimated Fair Value of Assets Acquired and Liabilities Assumed

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 acquisition.  The following table summarizes the estimated fair value of the assets acquired and liabilities assumed.

	(000's omitted)
Consideration paid:
Community Bank System, Inc. common stock	$	82,580
Cash		21,885
Total consideration paid		104,465
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		26,901
Investment securities		297,573
Loans		462,334
Premises and equipment		6,353
Accrued interest receivable		2,615
Other assets and liabilities, net		46,942
Core deposit intangibles		4,016
Other intangibles		1,595
Deposits		(771,554	)
Borrowings		(19,668	)
Total identifiable assets		57,107
Goodwill	$	47,358

Summary of Loans Acquired

The following is a summary of the loans acquired in the Wilber acquisition:

(000's omitted)	Acquired Impaired Loans			Acquired  Non-Impaired Loans			Total  Acquired Loans
Contractually required principal and interest at acquisition	$	41,730		$	680,516		$	722,246
Contractual cash flows not expected to be collected		(20,061	)		(31,115	)		(51,176	)
Expected cash flows at acquisition		21,669			649,401			671,070
Interest component of expected cash flows		(2,509	)		(206,227	)		(208,736	)
Fair value of acquired loans	$	19,160		$	443,174		$	462,334

Pro Forma Information

The pro forma information, for the three months ended March 31, set forth below reflects adjustments related to (a) certain purchase accounting fair value adjustments; (b) amortization of core deposit and other intangibles; and (c) income tax rate adjustment.  Expenses related to conversion of systems and other costs of integration, as well as certain one-time costs, are included in the periods in which they were incurred.

	Pro Forma (Unaudited) Three Months Ended
(000's omitted)	March 31, 2011	March 31, 2010
Total revenue, net of interest expense	$75,671	$75,706
Net income	16,523	15,363
Earnings per share:
Basic	$0.45	$0.42
Diluted	$0.44	$0.42