ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2018

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:

	2018			2017												2016
(000s omitted)	Other ⁽¹⁾			NRS			Merchants			Other ⁽²⁾			Total			WJL
Consideration paid :
Cash	$	1,753		$	70,073		$	82,898		$	6,775		$	159,746		$	575
Community Bank System, Inc. common stock		0			78,483			262,254			2,395			343,132			0
Total net consideration paid	$	1,753			148,556			345,152			9,170			502,878			575
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		16			11,063			40,730			339			52,132			0
Investment securities		0			20,294			370,648			0			390,942			0
Loans		0			0			1,488,157			0			1,488,157			0
Premises and equipment		10			411			16,608			27			17,046			0
Accrued interest receivable		0			72			4,773			0			4,845			0
Other assets		105			8,088			51,585			583			60,256			0
Core deposit intangibles		0			0			23,214			0			23,214			0
Other intangibles		1,343			60,200			2,857			5,626			68,683			288
Deposits		0			0			(1,448,406	)		0			(1,448,406	)		0
Other liabilities		(31	)		(26,828	)		(11,750	)		(1,155	)		(39,733	)		0
Short-term advances		0			0			(80,000	)		0			(80,000	)		0
Securities sold under agreement to repurchase, short-term		0			0			(278,076	)		0			(278,076	)		0
Long-term debt		0			0			(3,615	)		0			(3,615	)		0
Subordinated debt held by unconsolidated subsidiary trusts		0			0			(20,619	)		0			(20,619	)		0
Total identifiable assets, net		1,443			73,300			156,106			5,420			234,826			288
Goodwill	$	310		$	75,256		$	189,046		$	3,750		$	268,052		$	287

⁽¹⁾Includes amounts related to the Penna, Styles Bridges and HR Consultants acquisitions.

⁽²⁾Includes amounts related to the BAS, Dryfoos, NECM and GBR acquisitions.

Loans Acquired

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

	Acquired			Acquired			Total
	Impaired			Non-impaired			Acquired
(000s omitted)	Loans			Loans			Loans
Contractually required principal and interest at acquisition	$	15,454		$	1,872,574		$	1,888,028
Contractual cash flows not expected to be collected		(5,385	)		(14,753	)		(20,138	)
Expected cash flows at acquisition		10,069			1,857,821			1,867,890
Interest component of expected cash flows		(793	)		(378,940	)		(379,733	)
Fair value of acquired loans	$	9,276		$	1,478,881		$	1,488,157

Pro Forma Financial Information

The pro forma information set forth below reflects the historical results of Merchants and NRS combined with the Company’s consolidated statement of income with adjustments related to (a) certain purchase accounting fair value adjustments and (b) amortization of customer lists and core deposit intangibles. Acquisition expenses related to the Merchants and NRS transactions totaling $25.7 million for the year ended December 31, 2017 were included in the pro forma information as if they were incurred in 2016.

	Pro Forma (Unaudited) Year Ended December 31,
(000’s omitted)	2017		2016
Total revenue, net of interest expense	$	546,977	$	536,183
Net income		176,257		109,186