SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

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, 2021 filed with the SEC on March 1, 2022).

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 June 30, 2022
Net interest income	$	103,068	$	67	$	6	$	0	$	103,141
Provision for credit losses		6,038		0		0		0		6,038
Noninterest revenues		18,199		29,454		18,315		(1,871)		64,097
Amortization of intangible assets		1,195		1,670		986		0		3,851
Acquisition expenses		3,958		2		0		0		3,960
Acquisition-related contingent consideration adjustment		0		(100)		500		0		400
Other operating expenses		72,406		17,718		13,960		(1,871)		102,213
Income before income taxes	$	37,670	$	10,231	$	2,875	$	0	$	50,776
Assets	$	15,267,283	$	243,309	$	98,567	$	(121,326)	$	15,487,833
Goodwill	$	740,601	$	85,289	$	23,923	$	0	$	849,813
Core deposit intangibles & Other intangibles	$	14,817	$	36,679	$	16,582	$	0	$	68,078
Three Months Ended June 30, 2021
Net interest income	$	92,033	$	65	$	7	$	0	$	92,105
Provision for credit losses		(4,338)		0		0		0		(4,338)
Noninterest revenues		16,357		27,994		16,816		(1,707)		59,460
Amortization of intangible assets		1,240		1,327		679		0		3,246
Acquisition expenses		4		0		0		0		4
Other operating expenses		65,158		14,846		11,996		(1,707)		90,293
Income before income taxes	$	46,326	$	11,886	$	4,148	$	0	$	62,360
Assets	$	14,588,075	$	235,141	$	78,770	$	(100,699)	$	14,801,287
Goodwill	$	689,867	$	83,275	$	21,750	$	0	$	794,892
Core deposit intangibles & Other intangibles	$	11,267	$	29,370	$	7,143	$	0	$	47,780

			Employee						Consolidated
(000's omitted)	Banking		Benefit Services		All Other		Eliminations		Total
Six Months Ended June 30, 2022
Net interest income	$	197,866	$	135	$	12	$	0	$	198,013
Provision for credit losses		6,944		0		0		0		6,944
Noninterest revenues		36,207		59,642		37,855		(3,934)		129,770
Amortization of intangible assets		2,240		3,341		2,002		0		7,583
Acquisition expenses		4,256		3		0		0		4,259
Acquisition-related contingent consideration adjustment		0		(100)		500		0		400
Other operating expenses		139,062		35,315		27,546		(3,934)		197,989
Income before income taxes	$	81,571	$	21,218	$	7,819	$	0	$	110,608
Six Months Ended June 30, 2021
Net interest income	$	185,872	$	159	$	28	$	0	$	186,059
Provision for credit losses		(10,057)		0		0		0		(10,057)
Noninterest revenues		32,811		55,143		33,633		(3,596)		117,991
Amortization of intangible assets		2,564		2,681		1,352		0		6,597
Acquisition expenses		31		0		0		0		31
Other operating expenses		130,165		29,851		23,741		(3,596)		180,161
Income before income taxes	$	95,980	$	22,770	$	8,568	$	0	$	127,318