ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2017

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:

	2017												2016
(000s omitted)	NRS			Merchants			Other (1)			Total			WJL
Consideration paid :
Cash	$	70,073		$	82,898		$	4,224		$	157,195		$	575
Community Bank System, Inc. common stock		78,483			262,254			0			340,737			0
Total net consideration paid		148,556			345,152			4,224			497,932			575
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		11,063			40,730			0			51,793			0
Investment securities		20,294			370,648			0			390,942			0
Loans		0			1,488,680			0			1,488,680			0
Premises and equipment		411			16,608			27			17,046			0
Accrued interest receivable		72			4,773			0			4,845			0
Other assets		8,088			51,849			272			60,209			0
Core deposit intangibles		0			23,214			0			23,214			0
Other intangibles		60,200			2,857			2,857			65,914			288
Deposits		0			(1,448,406	)		0			(1,448,406	)		0
Other liabilities		(28,002	)		(11,774	)		(582	)		(40,358	)		0
Short-term advances		0			(80,000	)		0			(80,000	)		0
Securities sold under agreement to    repurchase, short-term		0			(278,076	)		0			(278,076	)		0
Long-term debt		0			(3,615	)		0			(3,615	)		0
Subordinated debt held by unconsolidated subsidiary trusts		0			(20,619	)		0			(20,619	)		0
Total identifiable assets, net		72,126			156,869			2,574			231,569			288
Goodwill	$	76,430		$	188,283		$	1,650		$	266,363		$	287

⁽¹⁾ Includes amounts related to the BAS and Dryfoos acquisitions.

Summary of Loans Acquired

The following is a summary of the loans acquired from Merchants at the date of acquisition:

(000s omitted)	Acquired Impaired Loans			Acquired Non-impaired Loans			Total Acquired Loans
Contractually required principal and interest at acquisition	$	16,351		$	1,872,574		$	1,888,925
Contractual cash flows not expected to be collected		(5,794	)		(14,753	)		(20,547	)
Expected cash flows at acquisition		10,557			1,857,821			1,868,378
Interest component of expected cash flows		(758	)		(378,940	)		(379,698	)
Fair value of acquired loans	$	9,799		$	1,478,881		$	1,488,680

Pro Forma Financial Information

Acquisition expenses related to the Merchants and NRS transactions totaling $0.5 million and $25.0 million for the three and nine months ended September 30, 2017 were included in the pro forma information as if they were incurred in the first quarter of 2016.

	Pro Forma (Unaudited) Three Months Ended				Pro Forma (Unaudited) Nine Months Ended
(000’s omitted)	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Total revenue, net of interest expense	$	136,692	$	135,026	$	407,735	$	400,341
Net income		35,533		32,706		104,197		78,557