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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2024
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE M: SEGMENT INFORMATION

Operating segments are components of an enterprise, which are evaluated regularly by the CODM in deciding how to allocate resources and assess performance. The Company’s CODM is the President and Chief Executive Officer of the Company. Effective January 1, 2024, the Company has identified (1) Banking and Corporate; (2) Employee Benefit Services; (3) Insurance; and (4) Wealth Management as its reportable segments and determined that operating income before income taxes is the reportable measure of segment profit or loss that the CODM regularly reviews and uses to allocate resources and assess performance. See Note C for further detail on the factors used to identify the Company’s reportable segments and reportable measure of segment profit or loss.

CBNA operates the Banking and Corporate segment that provides a wide array of lending and depository-related products and services to individuals, businesses, and governmental units with branch locations in Upstate New York as well as Northeastern Pennsylvania, Vermont and Western Massachusetts. In addition to these general intermediation services, the Banking and Corporate segment provides treasury management solutions and payment processing services. The Banking and Corporate segment also includes certain corporate overhead-related expenses.

The Employee Benefit Services segment, 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 and health savings account administration, fund administration, transfer agency, actuarial, and health and welfare consulting services.

The Insurance segment is comprised of personal and commercial lines of insurance and other risk management products and services provided by OneGroup NY, Inc.

The Wealth Management segment is comprised of wealth management services including trust services provided by the Nottingham Trust division 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 services provided by Nottingham Advisors, 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, 2023 filed with the SEC on February 29, 2024) except as follows. Operating noninterest revenues exclude certain items considered non-core to the underlying business including realized and unrealized gains or losses on investment securities and gains or losses on debt extinguishment. Operating noninterest expenses also exclude certain items considered non-core to the underlying business including amortization of intangible assets, acquisition expenses, acquisition-related contingent consideration adjustments, litigation accrual and restructuring expenses. Both operating noninterest revenues and operating noninterest expenses include certain intersegment activity associated with transactions between the segments and are eliminated in consolidation. Segment assets include certain segment cash balances held as deposits with CBNA and are eliminated in consolidation.

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Banking and

​

Employee

​

​

​

​

Wealth

​

​

(000’s omitted) 

    

Corporate

    

Benefit Services

    

Insurance

    

Management

    

Total

Three Months Ended June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Net interest income

​

$

108,535

​

$

702

​

$

40

​

$

132

​

$

109,409

Provision for credit losses

​

 

2,708

​

 

0

​

 

0

​

 

0

​

 

2,708

Operating noninterest revenues

​

 

19,502

​

 

33,051

​

 

13,324

​

 

9,019

​

 

74,896

Operating noninterest expenses

​

​

78,185

​

​

20,206

​

​

10,645

​

​

7,123

​

​

116,159

Operating income before income taxes

​

$

47,144

​

$

13,547

​

$

2,719

​

$

2,028

​

$

65,438

Assets

​

$

15,673,276

​

$

241,849

​

$

69,946

​

$

35,602

​

$

16,020,673

Goodwill

​

$

732,598

​

$

89,769

​

$

26,456

​

$

3,435

​

$

852,258

Core deposit intangibles & other intangibles, net

​

$

7,288

​

$

29,011

​

$

15,460

​

$

1,763

​

$

53,522

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating income before income taxes to total consolidated income before income taxes:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating income before income taxes

​

$

47,144

​

$

13,547

​

$

2,719

​

$

2,028

​

$

65,438

Loss on sales of investment securities

​

​

(232)

​

​

0

​

​

0

​

​

0

​

​

(232)

Unrealized gain on equity securities

​

​

867

​

​

0

​

​

0

​

​

0

​

​

867

Amortization of intangible assets

​

​

(855)

​

​

(1,781)

​

​

(1,047)

​

​

(194)

​

​

(3,877)

Acquisition expenses

​

​

0

​

​

(15)

​

​

(89)

​

​

0

​

​

(104)

Total consolidated income before income taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

$

62,092

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating noninterest revenues to total consolidated noninterest revenues:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating noninterest revenues

​

​

​

​

​

​

​

​

​

​

​

​

​

$

74,896

Elimination of intersegment revenues

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1,141)

Loss on sales of investment securities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(232)

Unrealized gain on equity securities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

867

Total consolidated noninterest revenues

​

​

​

​

​

​

​

​

​

​

​

​

​

$

74,390

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating noninterest expenses to total consolidated noninterest expenses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating noninterest expenses

​

​

​

​

​

​

​

​

​

​

​

​

​

$

116,159

Elimination of intersegment expenses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1,141)

Amortization of intangible assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

3,877

Acquisition expenses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

104

Total consolidated noninterest expenses

​

​

​

​

​

​

​

​

​

​

​

​

​

$

118,999

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment assets to total consolidated assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment assets

​

​

​

​

​

​

​

​

​

​

​

​

​

$

16,020,673

Elimination of intersegment cash and deposits

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(113,857)

Total consolidated assets

​

​

​

​

​

​

​

​

​

​

​

​

​

$

15,906,816

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Banking and

​

Employee

​

​

​

​

Wealth

​

​

(000’s omitted) 

    

Corporate

    

Benefit Services

    

Insurance

    

Management

    

Total

Three Months Ended June 30, 2023

    

​

  

    

​

  

    

​

  

    

​

  

    

​

  

Net interest income

​

$

108,770

​

$

388

​

$

34

​

$

87

​

$

109,279

Provision for credit losses

​

 

752

​

 

0

​

 

0

​

 

0

​

 

752

Operating noninterest revenues

​

 

17,721

​

 

29,384

​

 

11,887

​

 

8,169

​

 

67,161

Operating noninterest expenses

​

​

75,654

​

​

18,060

​

​

9,702

​

​

6,045

​

​

109,461

Operating income before income taxes

​

$

50,085

​

$

11,712

​

$

2,219

​

$

2,211

​

$

66,227

Assets

​

$

14,890,873

​

$

235,655

​

$

64,855

​

$

30,318

​

$

15,221,701

Goodwill

​

$

732,598

​

$

85,384

​

$

23,480

​

$

2,498

​

$

843,960

Core deposit intangibles & other intangibles, net

​

$

11,114

​

$

30,147

​

$

15,145

​

$

1,343

​

$

57,749

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating income before income taxes to total consolidated income before income taxes:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating income before income taxes

​

$

50,085

​

$

11,712

​

$

2,219

​

$

2,211

​

$

66,227

Unrealized loss on equity securities

​

​

(50)

​

​

0

​

​

0

​

​

0

​

​

(50)

Amortization of intangible assets

​

​

(1,160)

​

​

(1,632)

​

​

(725)

​

​

(188)

​

​

(3,705)

Acquisition-related contingent consideration adjustment

​

​

0

​

​

100

​

​

(1,100)

​

​

0

​

​

(1,000)

Acquisition expenses

​

​

1

​

​

0

​

​

0

​

​

0

​

​

1

Total consolidated income before income taxes

​

​

​

​

​

​

​

​

​

​

​

​

​

$

61,473

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating noninterest revenues to total consolidated noninterest revenues:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating noninterest revenues

​

​

​

​

​

​

​

​

​

​

​

​

​

$

67,161

Elimination of intersegment revenues

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1,127)

Unrealized loss on equity securities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(50)

Total consolidated noninterest revenues

​

​

​

​

​

​

​

​

​

​

​

​

​

$

65,984

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating noninterest expenses to total consolidated noninterest expenses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating noninterest expenses

​

​

​

​

​

​

​

​

​

​

​

​

​

$

109,461

Elimination of intersegment expenses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1,127)

Amortization of intangible assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

3,705

Acquisition-related contingent consideration adjustment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

1,000

Acquisition expenses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1)

Total consolidated noninterest expenses

​

​

​

​

​

​

​

​

​

​

​

​

​

$

113,038

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment assets to total consolidated assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment assets

​

​

​

​

​

​

​

​

​

​

​

​

​

$

15,221,701

Elimination of intersegment cash and deposits

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(113,651)

Total consolidated assets

​

​

​

​

​

​

​

​

​

​

​

​

​

$

15,108,050

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Banking and 

​

Employee 

​

​

​

Wealth 

​

​

(000’s omitted)

    

Corporate

    

Benefit Services

    

Insurance

    

Management

    

Total

Six Months Ended June 30, 2024

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Net interest income

​

$

214,749

​

$

1,325

​

$

67

​

$

258

​

$

216,399

Provision for credit losses

​

 

8,856

​

 

0

​

 

0

​

 

0

​

 

8,856

Operating noninterest revenues

​

 

37,687

​

 

65,621

​

 

24,451

​

 

18,655

​

 

146,414

Operating noninterest expenses

​

 

156,412

​

 

40,539

​

 

20,768

​

 

14,043

​

 

231,762

Operating income before income taxes

​

$

87,168

​

$

26,407

​

$

3,750

​

$

4,870

​

$

122,195

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating income before income taxes to total consolidated income before income taxes:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating income before income taxes

​

$

87,168

​

$

26,407

​

$

3,750

​

$

4,870

​

$

122,195

Loss on sales of investment securities

​

 

(232)

​

 

0

​

 

0

​

 

0

​

 

(232)

Unrealized gain on equity securities

​

 

883

​

 

0

​

 

0

​

 

0

​

 

883

Amortization of intangible assets

​

 

(1,828)

​

 

(3,506)

​

 

(1,720)

​

 

(399)

​

 

(7,453)

Acquisition expenses

​

 

0

​

 

(50)

​

 

(89)

​

 

0

​

 

(139)

Litigation accrual

​

 

0

​

 

0

​

 

(119)

​

 

0

​

 

(119)

Total consolidated income before income taxes

​

​

​

​

 

  

​

 

  

​

 

  

​

$

115,135

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating noninterest revenues to total consolidated noninterest revenues:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating noninterest revenues

​

​

​

​

 

  

​

 

  

​

 

  

​

$

146,414

Elimination of intersegment revenues

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(2,390)

Loss on sales of investment securities

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(232)

Unrealized gain on equity securities

​

​

​

​

 

  

​

 

  

​

 

  

​

 

883

Total consolidated noninterest revenues

​

​

​

​

 

  

​

 

  

​

 

  

​

$

144,675

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating noninterest expenses to total consolidated noninterest expenses:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating noninterest expenses

​

​

​

​

 

  

​

 

  

​

 

  

​

$

231,762

Elimination of intersegment expenses

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(2,390)

Amortization of intangible assets

​

​

​

​

 

  

​

 

  

​

 

  

​

 

7,453

Acquisition expenses

​

​

​

​

 

  

​

 

  

​

 

  

​

 

139

Litigation accrual

​

​

​

​

 

  

​

 

  

​

 

  

​

 

119

Total consolidated noninterest expenses

​

​

​

​

 

  

​

 

  

​

 

  

​

$

237,083

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Banking and 

​

Employee 

​

​

​

Wealth 

​

​

(000’s omitted)

    

Corporate

    

Benefit Services

    

Insurance

    

Management

    

Total

Six Months Ended June 30, 2023

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Net interest income

​

$

219,452

​

$

642

​

$

69

​

$

146

​

$

220,309

Provision for credit losses

​

 

4,252

​

 

0

​

 

0

​

 

0

​

 

4,252

Operating noninterest revenues

​

 

34,166

​

 

59,571

​

 

23,435

​

 

16,806

​

 

133,978

Operating noninterest expenses

​

 

154,067

​

 

36,334

​

 

18,483

​

 

12,140

​

 

221,024

Operating income before income taxes

​

$

95,299

​

$

23,879

​

$

5,021

​

$

4,812

​

$

129,011

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating income before income taxes to total consolidated income before income taxes:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating income before income taxes

​

$

95,299

​

$

23,879

​

$

5,021

​

$

4,812

​

$

129,011

Loss on sales of investment securities

​

 

(52,329)

​

 

0

​

 

0

​

 

0

​

 

(52,329)

Unrealized loss on equity securities

​

 

(50)

​

 

0

​

 

0

​

 

0

​

 

(50)

Gain on debt extinguishment

​

 

242

​

 

0

​

 

0

​

 

0

​

 

242

Amortization of intangible assets

​

 

(2,366)

​

 

(3,265)

​

 

(1,355)

​

 

(386)

​

 

(7,372)

Acquisition-related contingent consideration adjustment

​

 

0

​

 

100

​

 

(1,100)

​

 

0

​

 

(1,000)

Acquisition expenses

​

 

(16)

​

 

0

​

 

(40)

​

 

0

​

 

(56)

Total consolidated income before income taxes

​

​

​

​

 

  

​

 

  

​

 

  

​

$

68,446

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating noninterest revenues to total consolidated noninterest revenues:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating noninterest revenues

​

​

​

​

 

  

​

 

  

​

 

  

​

$

133,978

Elimination of intersegment revenues

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(2,362)

Loss on sales of investment securities

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(52,329)

Unrealized loss on equity securities

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(50)

Gain on debt extinguishment

​

​

​

​

 

  

​

 

  

​

 

  

​

 

242

Total consolidated noninterest revenues

​

​

​

​

 

  

​

 

  

​

 

  

​

$

79,479

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Reconciliation of total segment operating noninterest expenses to total consolidated noninterest expenses:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total segment operating noninterest expenses

​

​

​

​

 

  

​

 

  

​

 

  

​

$

221,024

Elimination of intersegment expenses

​

​

​

​

 

  

​

 

  

​

 

  

​

 

(2,362)

Amortization of intangible assets

​

​

​

​

 

  

​

 

  

​

 

  

​

 

7,372

Acquisition-related contingent consideration adjustment

​

​

​

​

 

  

​

 

  

​

 

  

​

 

1,000

Acquisition expenses

​

​

​

​

 

  

​

 

  

​

 

  

​

 

56

Total consolidated noninterest expenses

​

​

​

​

 

  

​

 

  

​

 

  

​

$

227,090

​