NOTE U:

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. 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 operating subsidiaries of BPAS, BPAS-APS, BPAS Trust Company of Puerto Rico, NRS and HB&T, 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 CISI and The Carta Group, and asset management provided by Nottingham, 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).

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

(000's omitted)	Banking		Employee Benefit Services		All Other		Eliminations			Consolidated Total
2017
Net interest income	$	315,025	$	396	$	254	$	0		$	315,675
Provision for loan losses		10,984		0		0		0			10,984
Noninterest income		73,337		82,743		49,201		(2,858	)		202,423
Amortization of intangible assets		5,296		8,578		3,067		0			16,941
Acquisition expenses		24,549		1,194		243		0			25,986
Other operating expenses		218,608		51,138		37,334		(2,858	)		304,222
Income before income taxes	$	128,925	$	22,229	$	8,811	$	0		$	159,965
Assets	$	10,505,919	$	203,369	$	66,548	$	(29,638	)	$	10,746,198
Goodwill	$	629,916	$	84,449	$	20,065	$	0		$	734,430

2016
Net interest income	$	273,542	$	162	$	192	$	0		$	273,896
Provision for loan losses		8,076		0		0		0			8,076
Noninterest income		66,059		48,261		43,747		(2,442	)		155,625
Amortization of intangible assets		2,682		420		2,377		0			5,479
Acquisition expenses		1,005		445		256		0			1,706
Other operating expenses		190,263		36,892		34,950		(2,442	)		259,663
Income before income taxes	$	137,575	$	10,666	$	6,356	$	0		$	154,597
Assets	$	8,598,057	$	38,742	$	71,428	$	(41,790	)	$	8,666,437
Goodwill	$	440,870	$	8,019	$	16,253	$	0		$	465,142

2015
Net interest income	$	248,167	$	132	$	121	$	0		$	248,420
Provision for loan losses		6,447		0		0		0			6,447
Noninterest income		57,704		46,784		20,967		(2,156	)		123,299
Amortization of intangible assets		2,803		515		345		0			3,663
Acquisition expenses		6,947		21		69		0			7,037
Other operating expenses		174,918		35,197		14,396		(2,156	)		222,355
Income before income taxes	$	114,756	$	11,183	$	6,278	$	0		$	132,217
Assets	$	8,513,228	$	35,011	$	70,067	$	(65,637	)	$	8,552,669
Goodwill	$	439,052	$	8,019	$	16,181	$	0		$	463,252