SEGMENT INFORMATION

9 Months Ended

Sep. 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.  Community Bank N.A. (“CBNA”) operates the banking segment that 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, 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 September 30, 2011
Net interest income	$54,539	$29	$0	$54,568
Provision for loan losses	1,043	0	0	1,043
Noninterest income	12,632	11,022	(432)	23,222
Loss on investment securities & debt extinguishments	(6)	0	0	(6)
Amortization of intangible assets	908	253	0	1,161
Other operating expenses	38,449	8,915	(432)	46,932
Income before income taxes	$26,765	$1,883	$0	$28,648
Assets	$6,480,206	$35,896	($12,248)	$6,503,854
Goodwill	$333,948	$10,281	$0	$344,229
Three Months Ended September 30, 2010
Net interest income	$46,296	$28	$0	$46,324
Provision for loan losses	1,400	0	0	1,400
Noninterest income	13,258	10,033	(377)	22,914
Amortization of intangible assets	1,067	210	0	1,277
Other operating expenses	35,582	7,870	(377)	43,075
Income before income taxes	$21,505	$1,981	$0	$23,486
Assets	$5,472,371	$35,535	($11,689)	$5,496,217
Goodwill	$287,411	$10,281	$0	$297,692
Nine months ended September 30, 2011
Net interest income	$154,202	$76	$0	$154,278
Provision for loan losses	3,143	0	0	3,143
Noninterest income	35,225	32,947	(1,357)	66,815
Gain on investment securities & debt extinguishments	8	0	0	8
Amortization of intangible assets	2,529	722	0	3,251
Other operating expenses	114,776	25,865	(1,357)	139,284
Income before income taxes	$68,987	$6,436	$0	$75,423
Nine months ended September 30, 2010
Net interest income	$135,473	$78	$0	$135,551
Provision for loan losses	5,270	0	0	5,270
Noninterest income	37,150	31,009	(1,150)	67,009
Amortization of intangible assets	4,319	666	0	4,985
Other operating expenses	104,678	24,252	(1,150)	127,780
Income before income taxes	$58,356	$6,169	$0	$64,525