SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2021

SEGMENT INFORMATION

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 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, Fringe Benefits Design of Minnesota, Inc. (“FBD”), 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 Community Investment Services, Inc., The Carta Group, Inc. and OneGroup Wealth Partners, 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 NY, 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, 2020 filed with the SEC on March 1, 2021).

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

			Employee						Consolidated
(000's omitted)	Banking		Benefit Services		All Other		Eliminations		Total
Three Months Ended September 30, 2021
Net interest income	$	92,539	$	65	$	7	$	0	$	92,611
Provision for credit losses		(944)		0		0		0		(944)
Noninterest revenues		17,696		30,473		17,885		(1,745)		64,309
Amortization of intangible assets		1,102		1,675		926		0		3,703
Acquisition expenses		102		0		0		0		102
Other operating expenses		67,980		17,212		13,184		(1,745)		96,631
Income before income taxes	$	41,995	$	11,651	$	3,782	$	0	$	57,428
Assets	$	15,102,077	$	246,033	$	99,721	$	(116,733)	$	15,331,098
Goodwill	$	689,868	$	85,336	$	23,923	$	0	$	799,127
Core deposit intangibles & Other intangibles	$	10,165	$	41,695	$	17,117	$	0	$	68,977
Three Months Ended September 30, 2020
Net interest income	$	92,642	$	256	$	67	$	0	$	92,965
Provision for credit losses		1,945		0		0		0		1,945
Noninterest revenues		19,756		25,651		15,706		(1,454)		59,659
Amortization of intangible assets		1,379		1,409		793		0		3,581
Acquisition expenses		796		0		0		0		796
Other operating expenses		67,193		15,078		11,772		(1,454)		92,589
Income before income taxes	$	41,085	$	9,420	$	3,208	$	0	$	53,713
Assets	$	13,674,995	$	210,679	$	80,528	$	(120,877)	$	13,845,325
Goodwill	$	690,162	$	83,275	$	20,312	$	0	$	793,749
Core deposit intangibles & Other intangibles	$	15,186	$	33,461	$	7,818	$	0	$	56,465

			Employee						Consolidated
(000's omitted)	Banking		Benefit Services		All Other		Eliminations		Total
Nine Months Ended September 30, 2021
Net interest income	$	278,411	$	224	$	35	$	0	$	278,670
Provision for credit losses		(11,001)		0		0		0		(11,001)
Noninterest revenues		50,507		85,616		51,518		(5,341)		182,300
Amortization of intangible assets		3,666		4,356		2,278		0		10,300
Acquisition expenses		133		0		0		0		133
Other operating expenses		198,145		47,063		36,925		(5,341)		276,792
Income before income taxes	$	137,975	$	34,421	$	12,350	$	0	$	184,746
Nine Months Ended September 30, 2020
Net interest income	$	274,051	$	742	$	177	$	0	$	274,970
Provision for credit losses		17,313		0		0		0		17,313
Noninterest revenues		53,428		76,080		46,058		(4,347)		171,219
Amortization of intangible assets		4,160		4,314		2,298		0		10,772
Acquisition expenses		4,537		0		0		0		4,537
Other operating expenses		190,523		45,157		34,890		(4,347)		266,223
Income before income taxes	$	110,946	$	27,351	$	9,047	$	0	$	147,344