SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2017

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 All Other as its reportable operating business segments.  Community Bank, N.A. (the “Bank” or “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 Northeastern Pennsylvania, Vermont and Western Massachusetts.  Employee Benefit Services, which includes the operating subsidiaries Benefit Plans Administrative Services, LLC, BPAS Actuarial and Pension Services, LLC (formerly Harbridge Consulting Group, LLC), BPAS Trust Company of Puerto Rico, Northeast Retirement Services, LLC, and Hand Benefits & Trust Company, provides employee benefit trust, collective investment fund, retirement plan administration, actuarial, VEBA/HRA, and health and welfare consulting services.  The All Other segment is comprised of: (a) wealth management services including trust services provided by the personal trust unit within the Bank, broker-dealer and investment advisory services provided by Community Investment Services, Inc. (“CISI”), and The Carta Group, Inc., as well as asset management provided by Nottingham Advisors, Inc., and (b) full-service insurance, risk management and employee benefit services provided by OneGroup.  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, 2016 filed with the SEC on March 1, 2017).

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

(000's omitted)	Banking		Employee Benefit Services		All Other		Eliminations			Consolidated Total
Three Months Ended June 30, 2017
Net interest income	$	77,872	$	94	$	63	$	0		$	78,029
Provision for loan losses		1,461		0		0		0			1,461
Noninterest revenues		18,062		21,118		12,733		(687	)		51,226
Amortization of intangible assets		1,170		2,343		750		0			4,263
Acquisition expenses		22,729		117		50		0			22,896
Other operating expenses		53,890		13,068		9,449		(687	)		75,720
Income before income taxes	$	16,684	$	5,684	$	2,547	$	0		$	24,915
Assets	$	10,635,177	$	217,020	$	75,382	$	(43,533	)	$	10,884,046
Goodwill	$	631,148	$	84,552	$	17,904	$	0		$	733,604
Three Months Ended June 30, 2016
Net interest income	$	68,220	$	38	$	48	$	0		$	68,306
Provision for loan losses		2,305		0		0		0			2,305
Noninterest revenues		16,594		12,067		10,706		(595	)		38,772
Amortization of intangible assets		691		114		598		0			1,403
Acquisition expenses		31		0		232		0			263
Other operating expenses		47,584		9,432		8,269		(595	)		64,690
Income before income taxes	$	34,203	$	2,559	$	1,655	$	0		$	38,417
Assets	$	8,675,329	$	34,814	$	68,945	$	(36,977	)	$	8,742,111
Goodwill	$	440,870	$	8,018	$	16,254	$	0		$	465,142

(000's omitted)	Banking		Employee Benefit Services		All Other		Eliminations			Consolidated Total
Six Months Ended June 30, 2017
Net interest income	$	145,006	$	172	$	125	$	0		$	145,303
Provision for loan losses		3,289		0		0		0			3,289
Noninterest revenues		33,929		38,754		24,212		(1,351	)		95,544
Amortization of intangible assets		1,724		3,933		1,374		0			7,031
Acquisition expenses		23,250		1,179		183		0			24,612
Other operating expenses		103,383		24,438		18,341		(1,351	)		144,811
Income before income taxes	$	47,289	$	9,376	$	4,439	$	0		$	61,104
Six Months Ended June 30, 2016
Net interest income	$	135,019	$	77	$	91	$	0		$	135,187
Provision for loan losses		3,646		0		0		0			3,646
Noninterest revenues		31,907		24,457		21,850		(1,161	)		77,053
Amortization of intangible assets		1,410		230		1,205		0			2,845
Acquisition expenses		99		0		241		0			340
Other operating expenses		96,046		18,879		17,076		(1,161	)		130,840
Income before income taxes	$	65,725	$	5,425	$	3,419	$	0		$	74,569