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ACQUISITIONS (Tables) | 9 Months Ended
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Sep. 30, 2020
ACQUISITIONS |
Schedule of estimated fair value of the assets acquired and liabilities | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed after considering the measurement period adjustments described above: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2020 | ​ | 2019
(000s omitted) |  | Steuben |  | Kinderhook |  | Other (1) |  | Total
Consideration paid : |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Cash | ​ | $ | 21,613 | ​ | $ | 93,384 | ​ | $ | 1,650 | ​ | $ | 95,034
Community Bank System, Inc. common stock | ​ |  | 76,942 | ​ |  | 0 | ​ |  | 0 | ​ |  | 0
Total net consideration paid | ​ |  | 98,555 | ​ |  | 93,384 | ​ |  | 1,650 | ​ |  | 95,034
Recognized amounts of identifiable assets acquired and liabilities assumed: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Cash and cash equivalents | ​ |  | 55,973 | ​ |  | 90,381 | ​ |  | 0 | ​ |  | 90,381
Investment securities | ​ |  | 180,497 | ​ |  | 39,770 | ​ |  | 0 | ​ |  | 39,770
Loans, net of allowance for credit losses on PCD loans (2) | ​ |  | 339,017 | ​ |  | 479,877 | ​ |  | 0 | ​ |  | 479,877
Premises and equipment, net | ​ |  | 7,764 | ​ |  | 13,970 | ​ |  | 0 | ​ |  | 13,970
Accrued interest and fees receivable | ​ |  | 2,712 | ​ |  | 1,130 | ​ |  | 0 | ​ |  | 1,130
Other assets | ​ |  | 17,633 | ​ |  | 14,109 | ​ |  | 0 | ​ |  | 14,109
Core deposit intangibles | ​ |  | 2,928 | ​ |  | 3,573 | ​ |  | 0 | ​ |  | 3,573
Other intangibles | ​ |  | 1,196 | ​ |  | 0 | ​ |  | 1,650 | ​ |  | 1,650
Deposits | ​ |  | (516,274) | ​ |  | (568,161) | ​ |  | 0 | ​ |  | (568,161)
Other liabilities | ​ |  | (5,105) | ​ |  | (2,922) | ​ |  | 0 | ​ |  | (2,922)
Other Federal Home Loan Bank borrowings | ​ |  | (6,000) | ​ |  | (2,420) | ​ |  | 0 | ​ |  | (2,420)
Subordinated notes payable | ​ |  | 0 | ​ |  | (13,831) | ​ |  | 0 | ​ |  | (13,831)
Subordinated debt held by unconsolidated subsidiary trusts | ​ |  | (2,062) | ​ |  | (2,062) | ​ |  | 0 | ​ |  | (2,062)
Total identifiable assets, net | ​ |  | 78,279 | ​ |  | 53,414 | ​ |  | 1,650 | ​ |  | 55,064
Goodwill | ​ | $ | 20,276 | ​ | $ | 39,970 | ​ | $ | 0 | ​ | $ | 39,970
(1) | Includes amounts related to both acquisitions completed by CISI in 2019.
(2) | Acquisition-related allowance for credit losses on purchased credit deteriorated (“PCD”) loans applicable beginning in 2020.
Schedule of of the loans acquired | The Company has acquired loans from Steuben for which there was evidence of a more-than-insignificant deterioration in credit quality since origination. There were no investment securities acquired from Steuben for which there was evidence of a more-than-insignificant deterioration in credit quality since origination. The carrying amount of those loans is as follows at the date of acquisition: ​
​ | ​ | ​ | ​
(000s omitted) |  | PCD Loans
Par value of PCD loans at acquisition | ​ | $ | 24,415
Allowance for credit losses at acquisition | ​ |  | (524)
Non-credit discount at acquisition | ​ |  | (115)
Fair value of PCD loans at acquisition | ​ | $ | 23,776
​ The following is a summary of the remaining loans acquired from Steuben for which there was no evidence of a more-than-insignificant deterioration in credit quality since origination at the date of acquisition: ​
​ | ​ | ​ | ​
(000s omitted) |  | Non-PCD Loans
Contractually required principal and interest at acquisition | ​ | $ | 416,230
Contractual cash flows not expected to be collected | ​ |  | (3,131)
Expected cash flows at acquisition | ​ |  | 413,099
Interest component of expected cash flows | ​ |  | (97,858)
Fair value of non-PCD loans at acquisition | ​ | $ | 315,241
​ The following is a summary of the loans acquired from Kinderhook at the date of acquisition: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Acquired |  | Acquired |  | Total
​ |  | Impaired |  | Non-impaired |  | Acquired
(000s omitted) |  | Loans |  | Loans |  | Loans
Contractually required principal and interest at acquisition | ​ | $ | 13,350 | ​ | $ | 636,384 | ​ | $ | 649,734
Contractual cash flows not expected to be collected | ​ |  | (4,176) | ​ |  | (5,472) | ​ |  | (9,648)
Expected cash flows at acquisition | ​ |  | 9,174 | ​ |  | 630,912 | ​ |  | 640,086
Interest component of expected cash flows | ​ |  | (551) | ​ |  | (159,658) | ​ |  | (160,209)
Fair value of acquired loans | ​ | $ | 8,623 | ​ | $ | 471,254 | ​ | $ | 479,877
Schedule of pro forma information | The pro forma information set forth below reflects the historical results of Steuben combined with the Company’s consolidated statements of income with adjustments related to (a) certain purchase accounting fair value adjustments and (b) amortization of customer lists and core deposit intangibles. Acquisition-related expenses totaling $0.8 million and $4.4 million for the three and nine months ended September 30, 2020, respectively, related to Steuben were included in the pro forma information as if they were incurred in the first quarter of 2019. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Pro Forma (Unaudited) | ​ | Pro Forma (Unaudited)
​ |  | Three Months Ended |  | Nine Months Ended
(000’s omitted) |  | September 30, 2020 |  | September 30, 2019 |  | September 30, 2020 |  | September 30, 2019
Total revenue, net of interest expense | ​ | $ | 152,634 | ​ | $ | 154,221 | ​ | $ | 456,740 | ​ | $ | 457,399
Net income | ​ |  | 43,472 | ​ |  | 40,695 | ​ |  | 124,338 | ​ |  | 126,874

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