PENDING ACQUISITION

9 Months Ended

Sep. 30, 2013

Pending Acquisition [Abstract]

PENDING ACQUISITION

NOTE 13                      PENDING ACQUISITION

On July 10, 2013, the Bank, the wholly-owned banking subsidiary of the Corporation, entered into a Purchase and

Assumption Agreement with Bank of America, National Association (“BOA”) pursuant to which the Bank agreed

to acquire certain assets and assume certain liabilities of six BOA branch offices located in Auburn, Cortland,

Ithaca and Seneca Falls, New York. Subject to the terms of the Purchase Agreement, the Bank will acquire

approximately $261,000,000 in deposits and $1,600,000 in loans, for a purchase price equal to the sum of a

deposit premium of 1.5% based on the 30-day average balances prior to the close of the transaction, the aggregate

net book value of all assets and accrued interest on the loans acquired.  The Bank will not receive any loans that

are past due 30 days or more on the closing date.  The transaction, which has received regulatory approval, is

expected to close in the fourth quarter of 2013.