SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2014

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, Employee Benefit Services and Wealth Management as its reportable operating business segments.  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.  Employee benefit services, which includes Benefit Plans Administrative Services, Inc. (“BPAS”) and subsidiaries with offices throughout the U.S. and Puerto Rico, provides employee benefit trust, collective investment fund, retirement plan administration, actuarial, VEBA/HRA and health and welfare consulting services.  Wealth management services activities include trust services provided by the personal trust unit within the Bank, investment and insurance products and services provided by Community Investment Services, Inc. (“CISI”) and CBNA Insurance Agency, Inc., and asset management provided by Nottingham Advisors, Inc.  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, 2013 filed with the SEC on March 3, 2014).

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

(000's omitted)	Banking	Employee Benefit Services	Wealth Management	Eliminations	Consolidated Total
Three Months Ended September 30, 2014
Net interest income	$61,350	$21	$23	$0	$61,394
Provision for loan losses	1,747	0	0	0	1,747
Noninterest income	15,700	11,049	4,809	(486)	31,072
Amortization of intangible assets	850	153	48	0	1,051
Other operating expenses	46,837	8,140	3,269	(486)	57,760
Income before income taxes	$27,616	$2,777	$1,515	$0	$31,908
Assets	$7,476,030	$29,605	$14,965	($17,957)	$7,502,643
Goodwill	$364,495	$8,019	$2,660	$0	$375,174
Three Months Ended September 30, 2013
Net interest income	$60,566	$16	$19	$0	$60,601
Provision for loan losses	2,093	0	0	0	2,093
Noninterest income	14,372	9,619	3,960	(357)	27,594
Amortization of intangible assets	875	157	57	0	1,089
Other operating expenses	43,497	7,810	3,005	(357)	53,955
Income before income taxes	$28,473	$1,668	$917	$0	$31,058
Assets	$7,276,673	$27,228	$12,635	($14,519)	$7,302,017
Goodwill	$359,207	$7,836	$2,660	$0	$369,703
Nine Months Ended September 30, 2014
Net interest income	$182,537	$67	$68	$0	$182,672
Provision for loan losses	4,647	0	0	0	4,647
Noninterest income	43,922	32,434	14,101	(1,365)	89,092
Amortization of intangible assets	2,644	496	153	0	3,293
Other operating expenses	133,680	24,622	9,666	(1,365)	166,603
Income before income taxes	$85,488	$7,383	$4,350	$0	$97,221
Nine Months Ended September 30, 2013
Net interest income	$177,319	$81	$58	$0	$177,458
Provision for loan losses	4,807	0	0	0	4,807
Noninterest income	40,667	29,249	12,095	(1,210)	80,801
Amortization of intangible assets	2,720	507	181	0	3,408
Other operating expenses	129,674	23,019	9,081	(1,210)	160,564
Income before income taxes	$80,785	$5,804	$2,891	$0	$89,480