SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

NOTE M:  SEGMENT INFORMATION

Operating segments are components of an enterprise, which are evaluated regularly by the “chief operating decision maker” in deciding how to allocate resources and assess performance.  The Company's chief operating decision maker is the President and Chief Executive Officer of the Company. The Company has identified Banking as its reportable operating business segment.  The banking segment provides full-service banking to consumers, businesses and governmental units in northern, central and western New York as well as Northern Pennsylvania.

Immaterial operating segments of the Company's operations, which do not have similar characteristics to the banking segment and do not meet the quantitative thresholds requiring disclosure, are included in the “Other” category.  Revenues derived from these segments include administration, consulting and actuarial services to sponsors of employee benefit plans, broker-dealer and investment advisory services, asset management services to individuals, corporate pension and profit sharing plans, trust services and insurance commissions from various insurance related products and services.  The accounting policies used in the disclosure of business segments are the same as those described in the summary of significant accounting policies (See Note A, Summary of Significant Accounting Policies of the most recent Form 10-K for the year ended December 31, 2010 filed with the SEC on March 15, 2011).

Information about reportable segments and reconciliation of the information to the consolidated financial statements follows:

(000's omitted)	Banking	Other	Eliminations	Consolidated Total
Three Months Ended June 30, 2011
Net interest income	$54,162	$25	$0	$54,187
Provision for loan losses	1,050	0	0	1,050
Noninterest income	12,115	11,081	(445)	22,751
Gain on investment securities & debt extinguishments	14	0	0	14
Amortization of intangible assets	921	268	0	1,189
Other operating expenses	41,778	8,604	(445)	49,937
Income before income taxes	$22,542	$2,234	$0	$24,776
Assets	$6,365,178	$36,688	($11,381)	$6,390,485
Goodwill	$335,634	$10,281	$0	$345,915
Three Months Ended June 30, 2010
Net interest income	$45,924	$21	$0	$45,945
Provision for loan losses	2,050	0	0	2,050
Noninterest income	12,451	10,289	(362)	22,378
Amortization of intangible assets	1,621	228	0	1,849
Other operating expenses	34,537	8,196	(362)	42,371
Income before income taxes	$20,167	$1,886	$0	$22,053
Assets	$5,424,388	$34,196	($10,782)	$5,447,802
Goodwill	$287,411	$10,281	$0	$297,692
Six Months Ended June 30, 2011
Net interest income	$99,663	$47	$0	$99,710
Provision for loan losses	2,100	0	0	2,100
Noninterest income	22,594	21,924	(925)	43,593
Gain on investment securities & debt extinguishments	14	0	0	14
Amortization of intangible assets	1,621	469	0	2,090
Other operating expenses	76,327	16,950	(925)	92,352
Income before income taxes	$42,223	$4,552	$0	$46,775
Six Months Ended June 30, 2010
Net interest income	$89,178	$49	$0	$89,227
Provision for loan losses	3,870	0	0	3,870
Noninterest income	23,893	20,976	(774)	44,095
Amortization of intangible assets	3,252	456	0	3,708
Other operating expenses	69,096	16,383	(774)	84,705
Income before income taxes	$36,853	$4,186	$0	$41,039