SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2019

NOTE N: 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 Upstate 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, BPAS Trust Company of Puerto Rico, Northeast Retirement Services, LLC (“NRS”), Global Trust Company, Inc. (“GTC”), and Hand Benefits & Trust Company, provides employee benefit trust, collective investment fund, retirement plan administration, fund administration, transfer agency, 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 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, 2018 filed with the SEC on March 1, 2019).

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, 2019
Net interest income	$	88,127	$	131	$	42	$	0		$	88,300
Provision for loan losses		1,400		0		0		0			1,400
Noninterest revenues		21,921		24,839		15,159		(1,213	)		60,706
Amortization of intangible assets		1,375		1,669		860		0			3,904
Acquisition expenses		1,194		0		0		0			1,194
Other operating expenses		60,578		15,405		11,308		(1,213	)		86,078
Income before income taxes	$	45,501	$	7,896	$	3,033	$	0		$	56,430
Assets	$	10,534,555	$	206,178	$	72,862	$	(68,207	)	$	10,745,388
Goodwill	$	629,916	$	83,275	$	20,312	$	0		$	733,503
Core deposit intangibles & Other intangibles	$	15,738	$	41,107	$	10,167	$	0		$	67,012

Three Months Ended June 30, 2018
Net interest income	$	86,723	$	93	$	30	$	0		$	86,846
Provision for loan losses		2,448		0		0		0			2,448
Noninterest revenues		20,040		23,051		14,168		(700	)		56,559
Amortization of intangible assets		1,635		1,989		931		0			4,555
Acquisition expenses		65		0		6		0			71
Other operating expenses		57,464		14,204		10,518		(700	)		81,486
Income before income taxes	$	45,151	$	6,951	$	2,743	$	0		$	54,845
Assets	$	10,415,083	$	207,114	$	64,560	$	(53,663	)	$	10,633,094
Goodwill	$	629,916	$	83,275	$	20,288	$	0		$	733,479
Core deposit intangibles & Other intangibles	$	21,646	$	48,484	$	12,518	$	0		$	82,648

(000's omitted)	Banking		Employee Benefit Services		All Other		Eliminations			Consolidated Total
Six Months Ended June 30, 2019
Net interest income	$	174,842	$	239	$	78	$	0		$	175,159
Provision for loan losses		3,822		0		0		0			3,822
Noninterest revenues		39,269		49,509		29,606		(1,982	)		116,402
Amortization of intangible assets		2,858		3,438		1,738		0			8,034
Acquisition expenses		1,728		0		0		0			1,728
Other operating expenses		120,347		29,684		22,017		(1,982	)		170,066
Income before income taxes	$	85,356	$	16,626	$	5,929	$	0		$	107,911

Six Months Ended June 30, 2018
Net interest income	$	171,253	$	163	$	54	$	0		$	171,470
Provision for loan losses		6,127		0		0		0			6,127
Noninterest revenues		40,397		46,500		28,548		(1,395	)		114,050
Amortization of intangible assets		3,379		4,077		1,897		0			9,353
Acquisition expenses		50		7		6		0			63
Other operating expenses		114,418		27,914		22,090		(1,395	)		163,027
Income before income taxes	$	87,676	$	14,665	$	4,609	$	0		$	106,950