Segment Information

3 Months Ended

Mar. 31, 2022

Segment Information

Segment Information

12.Segment Information

The Company has three primary business segments, its community banking franchise, its insurance agency, and a limited-purpose commercial bank.

The community banking segment provides financial services to consumers and businesses principally in the Finger Lakes Region and Orleans County of New York State. These services include providing various types of loans to customers, accepting deposits, mortgage banking, and other traditional banking services. Parent company and treasury function income is included in the community-banking segment, as the majority of effort for these functions is related to this segment. Major revenue sources include net interest income, service fees on deposit accounts, and investment services commission. Expenses include personnel and branch-network support charges.

The insurance agency segment offers insurance coverage to businesses and individuals in the Finger Lakes Region. The insurance activities consist of those conducted through the Bank’s wholly owned subsidiary, Generations Agency. The primary revenue source is commissions. Expenses include personnel and office support charges.

The municipal banking segment is a New York State chartered limited-purpose commercial bank formed expressly to enable local municipalities, primarily within the Finger Lakes Region and Northwest New York State, to deposit public funds with the Commercial Bank in accordance with existing NYS municipal law. The Commercial Bank is a wholly owned subsidiary of the Bank. The major revenue source is net interest income. Expenses include personnel, rent and support charges for using the assets and technology of the Bank.

Information about the segments is presented in the following table as of and for the periods as noted:

	Three Months Ended March 31,
	2022								2021
	Community				Municipal				Community				Municipal
	Banking		Insurance		Banking				Banking		Insurance		Banking
(In thousands)	Activities		Activities		Activities		Total		Activities		Activities		Activities		Total
Net interest income	$	2,835	$	—	$	60	$	2,895	$	2,780	$	—	$	63	$	2,843
Provision for loan losses		150		—		—		150		135		—		—		135
Net interest income after provision for loan losses		2,685		—		60		2,745		2,645		—		63		2,708
Total noninterest income		421		195		—		616		439		173		—		612
Compensation and benefits		(1,149)		(86)		—		(1,235)		(1,158)		(101)		—		(1,259)
Other noninterest expense		(1,604)		(30)		(21)		(1,655)		(1,561)		(37)		(31)		(1,629)
Income before income tax expense		353		79		39		471		365		35		32		432
Income tax expense		68		—		7		75		72		—		7		79
Net income	$	285	$	79	$	32	$	396	$	293	$	35	$	25	$	353

The following represents a reconciliation of the Company’s reported segment assets:

	At March 31,		At December 31,
(In thousands)	2022		2021
Total assets for reportable segments	$	392,168	$	395,225
Elimination of intercompany balances		(14,697)		(16,276)
Consolidated total assets	$	377,471	$	378,949

The accounting policies of each segment are the same as those described in the summary of significant accounting policies.