INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAXES [Abstract]

Provision for Income Taxes

The provision for income taxes for the years ended December 31 is as follows:

(000's omitted)	2016		2015		2014
Current:
Federal	$	32,829	$	27,663	$	30,006
State and other		4,890		2,608		870
Deferred:
Federal		11,444		9,604		6,867
State and other		1,622		1,112		594
Provision for income taxes	$	50,785	$	40,987	$	38,337

Components of Net Deferred Tax Liability

Components of the net deferred tax liability, included in other liabilities, as of December 31 are as follows:

(000's omitted)	2016			2015
Allowance for loan losses	$	18,366		$	17,791
Employee benefits		6,311			6,633
Debt extinguishment		299			613
Other, net		5,202			9,704
Deferred tax asset		30,178			34,741
Investment securities		32,839			38,314
Tax-deductible goodwill		43,504			39,724
Loan origination costs		8,228			7,295
Depreciation		71			886
Mortgage servicing rights		548			565
Pension		18,194			14,807
Deferred tax liability		103,384			101,591
Net deferred tax liability	$	(73,206	)	$	(66,850	)

Reconciliation of Differences between Federal Statutory Income Tax Rate and Effective Tax Rate

A reconciliation of the differences between the federal statutory income tax rate and the effective tax rate for the years ended December 31 is shown in the following table:

	2016			2015			2014
Federal statutory income tax rate		35.0	%		35.0	%		35.0	%
Increase (reduction) in taxes resulting from:
Tax-exempt interest		(4.0	)		(5.0	)		(5.4	)
State income taxes, net of federal benefit		2.7			1.8			0.7
Other		(0.9	)		(0.8	)		(0.7	)
Effective income tax rate		32.8	%		31.0	%		29.6	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the unrecognized tax benefits for the years ended December 31 is shown in the following table:

(000’s omitted)	2016			2015			2014
Unrecognized tax benefits at beginning of year	$	127		$	162		$	138
Changes related to:
Positions taken during the current year		0			0			24
Lapse of statutes of limitations		(35	)		(35	)		0
Unrecognized tax benefits at end of year	$	92		$	127		$	162