SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2012

SEGMENT INFORMATION [Abstract]

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 as its reportable operating business segment.  Community Bank, N.A. operates the banking segment that provides full-service banking to consumers, businesses and governmental units in northern, central and western New York as well as Northern Pennsylvania.

Other operating segments of the Company's operations, which do not have similar characteristics to the banking segment and do not meet the quantitative thresholds requiring disclosure, are included in the "Other" category.  Revenues derived from these segments include administration, consulting and actuarial services to sponsors of employee benefit plans, investment advisory services, asset management services to individuals, corporate pension and profit sharing plans, trust services and insurance commissions from various insurance related products and services.  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, 2011 filed with the SEC on February 29, 2012).

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

(000's omitted)	Banking			Other		Eliminations			Consolidated Total
Three Months Ended September 30, 2012
Net interest income	$	58,730		$	45	$	0		$	58,775
Provision for loan losses		2,643			0		0			2,643
Noninterest income		13,462			12,647		(541	)		25,568
Gain on investment securities, net		291			0		0			291
Amortization of intangible assets		958			254		0			1,212
Other operating expenses		44,796			10,618		(541	)		54,873
Income before income taxes	$	24,086		$	1,820	$	0		$	25,906
Assets	$	7,546,153		$	41,303	$	(17,083	)	$	7,570,373
Goodwill	$	359,207		$	10,496	$	0		$	369,703
Three Months Ended September 30, 2011
Net interest income	$	54,539		$	29	$	0		$	54,568
Provision for loan losses		1,043			0		0			1,043
Noninterest income		12,632			11,022		(432	)		23,222
Loss on investment securities, net		(6	)		0		0			(6	)
Amortization of intangible assets		908			253		0			1,161
Other operating expenses		38,449			8,915		(432	)		46,932
Income before income taxes	$	26,765		$	1,883	$	0		$	28,648
Assets	$	6,480,206		$	35,965	$	(12,317	)	$	6,503,854
Goodwill	$	333,948		$	10,281	$	0		$	344,229
Nine Months Ended September 30, 2012
Net interest income	$	170,329		$	126	$	0		$	170,455
Provision for loan losses		6,442			0		0			6,442
Noninterest income		36,754			37,608		(1,630	)		72,732
Gain on investment securities, net		291			0		0			291
Amortization of intangible assets		2,536			807		0			3,343
Other operating expenses		121,902			31,243		(1,630	)		151,515
Income before income taxes	$	76,494		$	5,684	$	0		$	82,178
Nine Months Ended September 30, 2011
Net interest income	$	154,202		$	76	$	0		$	154,278
Provision for loan losses		3,143			0		0			3,143
Noninterest income		35,225			32,947		(1,357	)		66,815
Gain on investment securities & debt extinguishments, net		8			0		0			8
Amortization of intangible assets		2,529			722		0			3,251
Other operating expenses		114,776			25,865		(1,357	)		139,284
Income before income taxes	$	68,987		$	6,436	$	0		$	75,423