SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

NOTE L:  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. 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.

Other 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, 2011 filed with the SEC on February 29, 2012).

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, 2012
Net interest income	$	57,730	$	41	$	0		$	57,771
Provision for loan losses		2,155		0		0			2,155
Noninterest income		11,929		12,281		(514	)		23,696
Amortization of intangible assets		774		271		0			1,045
Other operating expenses		38,588		10,251		(514	)		48,325
Income before income taxes	$	28,142	$	1,800	$	0		$	29,942
Assets	$	7,141,681	$	39,632	$	(14,982	)	$	7,166,331
Goodwill	$	334,554	$	10,496	$	0		$	345,050
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	$	6,365,080	$	36,688	$	(11,283	)	$	6,390,485
Goodwill	$	335,634	$	10,281	$	0		$	345,915
Six Months Ended June 30, 2012
Net interest income	$	111,599	$	81	$	0		$	111,680
Provision for loan losses		3,799		0		0			3,799
Noninterest income		23,292		24,961		(1,089	)		47,164
Amortization of intangible assets		1,578		553		0			2,131
Other operating expenses		77,106		20,625		(1,089	)		96,642
Income before income taxes	$	52,408	$	3,864	$	0		$	56,272
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