SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

NOTE L: 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, 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. 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 September 30, 2023
Net interest income	$	107,169	$	486	$	131	$	0	$	107,786
Provision for credit losses		2,878		0		0		0		2,878
Noninterest revenues		18,448		30,777		20,438		(2,077)		67,586
Amortization of intangible assets		1,004		1,596		976		0		3,576
Acquisition expenses		0		0		0		0		0
Acquisition-related contingent consideration adjustment		0		0		80		0		80
Other operating expenses		78,884		18,996		17,045		(2,077)		112,848
Income before income taxes	$	42,851	$	10,671	$	2,468	$	0	$	55,990
Assets	$	15,160,821	$	237,310	$	103,721	$	(115,530)	$	15,386,322
Goodwill	$	732,598	$	85,384	$	27,414	$	0	$	845,396
Core deposit intangibles & Other intangibles	$	10,110	$	28,258	$	17,570	$	0	$	55,938
Three Months Ended September 30, 2022
Net interest income	$	110,311	$	75	$	8	$	0	$	110,394
Provision for credit losses		5,061		0		0		0		5,061
Noninterest revenues		19,427		28,451		19,210		(1,839)		65,249
Amortization of intangible assets		1,266		1,633		938		0		3,837
Acquisition expenses		409		0		0		0		409
Other operating expenses		73,554		17,711		14,513		(1,839)		103,939
Income before income taxes	$	49,448	$	9,182	$	3,767	$	0	$	62,397
Assets	$	15,373,021	$	250,784	$	102,883	$	(132,141)	$	15,594,547
Goodwill	$	735,680	$	85,381	$	23,923	$	0	$	844,984
Core deposit intangibles & Other intangibles	$	13,550	$	35,045	$	15,645	$	0	$	64,240

			Employee						Consolidated
(000's omitted)	Banking		Benefit Services		All Other		Eliminations		Total
Nine Months Ended September 30, 2023
Net interest income	$	326,621	$	1,129	$	345	$	0	$	328,095
Provision for credit losses		7,130		0		0		0		7,130
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		54,397		90,416		60,764		(6,425)		199,152
Amortization of intangible assets		3,370		4,860		2,718		0		10,948
Acquisition expenses		16		0		40		0		56
Acquisition-related contingent consideration adjustment		0		(100)		1,180		0		1,080
Other operating expenses		232,647		56,709		48,579		(6,425)		331,510
Income before income taxes	$	85,768	$	30,076	$	8,592	$	0	$	124,436
Nine Months Ended September 30, 2022
Net interest income	$	308,177	$	210	$	20	$	0	$	308,407
Provision for credit losses		12,005		0		0		0		12,005
Noninterest revenues		55,634		88,093		57,065		(5,773)		195,019
Amortization of intangible assets		3,506		4,974		2,940		0		11,420
Acquisition expenses		4,665		3		0		0		4,668
Acquisition-related contingent consideration adjustment		0		(100)		500		0		400
Other operating expenses		212,616		53,026		42,059		(5,773)		301,928
Income before income taxes	$	131,019	$	30,400	$	11,586	$	0	$	173,005