SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2020

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 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, 2019 filed with the SEC on March 2, 2020).

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 March 31, 2020
Net interest income	$	89,763	$	240	$	51	$	0		$	90,054
Provision for credit losses		5,594		0		0		0			5,594
Noninterest revenues		18,680		25,925		15,536		(1,519	)		58,622
Amortization of intangible assets		1,417		1,494		756		0			3,667
Acquisition expenses		369		0		0		0			369
Other operating expenses		64,200		15,130		11,816		(1,519	)		89,627
Income before income taxes	$	36,863	$	9,541	$	3,015	$	0		$	49,419
Assets	$	11,633,330	$	213,768	$	76,525	$	(114,640	)	$	11,808,983
Goodwill	$	669,886	$	83,275	$	20,312	$	0		$	773,473
Core deposit intangibles & Other intangibles	$	15,001	$	36,281	$	8,164	$	0		$	59,446

Three Months Ended March 31, 2019
Net interest income	$	86,715	$	108	$	36	$	0		$	86,859
Provision for credit losses		2,422		0		0		0			2,422
Noninterest revenues		17,348		24,670		14,447		(769	)		55,696
Amortization of intangible assets		1,483		1,769		878		0			4,130
Acquisition expenses		534		0		0		0			534
Other operating expenses		59,769		14,279		10,709		(769	)		83,988
Income before income taxes	$	39,855	$	8,730	$	2,896	$	0		$	51,481
Assets	$	10,699,384	$	199,345	$	71,047	$	(53,309	)	$	10,916,467
Goodwill	$	629,916	$	83,275	$	20,312	$	0		$	733,503
Core deposit intangibles & Other intangibles	$	17,113	$	42,777	$	11,026	$	0		$	70,916