SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE K: 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 of 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, 2022 filed with the SEC on March 1, 2023).

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 March 31, 2023
Net interest income	$	110,682	$	254	$	94	$	0	$	111,030
Provision for credit losses		3,500		0		0		0		3,500
Loss on sales of investment securities		(52,329)		0		0		0		(52,329)
Gain on debt extinguishment		242		0		0		0		242
Other noninterest revenues		17,362		30,221		20,228		(2,229)		65,582
Amortization of intangible assets		1,206		1,633		828		0		3,667
Acquisition expenses		17		0		40		0		57
Other operating expenses		78,266		18,964		15,327		(2,229)		110,328
Income (loss) before income taxes	$	(7,032)	$	9,878	$	4,127	$	0	$	6,973
Assets	$	15,040,487	$	229,091	$	98,145	$	(111,770)	$	15,255,953
Goodwill	$	733,064	$	85,384	$	24,488	$	0	$	842,936
Core deposit intangibles & Other intangibles	$	11,629	$	31,778	$	14,571	$	0	$	57,978
Three Months Ended March 31, 2022
Net interest income	$	94,798	$	68	$	6	$	0	$	94,872
Provision for credit losses		906		0		0		0		906
Noninterest revenues		18,008		30,188		19,540		(2,063)		65,673
Amortization of intangible assets		1,045		1,671		1,016		0		3,732
Acquisition expenses		298		1		0		0		299
Other operating expenses		66,656		17,597		13,586		(2,063)		95,776
Income before income taxes	$	43,901	$	10,987	$	4,944	$	0	$	59,832
Assets	$	15,402,218	$	260,166	$	97,945	$	(134,446)	$	15,625,883
Goodwill	$	689,868	$	85,292	$	23,920	$	0	$	799,080
Core deposit intangibles & Other intangibles	$	8,041	$	38,348	$	17,569	$	0	$	63,958