v3.26.1
SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2026
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE K: SEGMENT INFORMATION

Operating segments are components of an enterprise, which are evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s CODM is the President and Chief Executive Officer of the Company. The Company has identified (1) Banking and Corporate, (2) Employee Benefit Services, (3) Insurance Services, and (4) Wealth Management Services as its reportable segments and determined that segment adjusted income before income taxes is the reported measure of segment profit or loss. See “Note A Summary of Significant Accounting Policies” contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC on February 27, 2026, for further detail on the factors used to identify the Company’s reportable segments and reported 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, Western Massachusetts and Southern New Hampshire. 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 BPA, BPAS Actuarial & Pension Services, LLC, BPAS Trust Company of Puerto Rico, Northeast Retirement Services, LLC, Global Trust Company, Inc., Hand Benefits & Trust Company and Hand Securities Inc., provides employee benefit trust, collective investment fund, retirement plan and health savings account administration, fund administration, transfer agency, actuarial, health and welfare consulting services and introducing broker-dealer services.

The Insurance Services segment includes the operating subsidiary OneGroup, a full-service insurance agency offering personal and commercial lines of insurance and other risk management products and services, as well as the Company’s equity method investment in Leap Holdings, Inc., a Delaware corporation (“Leap”).

The Wealth Management Services segment is comprised of wealth management services including trust services provided by the Nottingham Trust and ClearPoint Trust divisions within the Bank, broker-dealer and investment advisory services provided by NISI and Nottingham 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 “Note A Summary of Significant Accounting Policies” contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC on February 27, 2026, except as follows. Segment operating revenues exclude certain items considered non-core to the operating performance of the business including realized and unrealized gains or losses on investment securities. Significant segment expenses are the expense categories significant to the segment, regularly provided to or easily computed from information regularly provided to the CODM and included in segment adjusted income before income taxes. Segment adjusted income before income taxes also excludes certain items considered non-core to the operating performance of the business including amortization of intangible assets, acquisition expenses and litigation accrual. Both segment operating revenues and significant segment 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.

The CODM uses segment adjusted income before income taxes to measure performance and allocate resources, including employees, property and financial or capital resources, for all of the Company’s segments. The CODM considers current period actual-to-current period budget and current period actual-to-prior period actual variances on a monthly basis for each of the Company’s segments along with comparisons of the actual segment results with one another. Segment adjusted income before income taxes is also used as a factor in the determination of incentive compensation for key employees of the segments including the segment leaders.

There are no transactions with a single customer that result in revenues that exceed 10 percent of consolidated total revenues.

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

Employee

Wealth

 

Banking and

Benefit

Insurance

Management

 

(000’s omitted) 

  ​ ​

Corporate

  ​ ​

Services

  ​ ​

Services

  ​ ​

Services

  ​ ​

Total

Three Months Ended June 30, 2026

 

  ​

 

  ​

 

  ​

 

  ​

  ​ ​ ​

 

  ​

Net interest income (expense) from external customers

$

139,089

$

139

$

0

$

(84)

$

139,144

Noninterest revenues from external customers

21,239

34,885

13,195

10,445

79,764

Revenues from external customers

160,328

35,024

13,195

10,361

218,908

Equity in net loss of investees accounted for by the equity method

0

0

(463)

0

(463)

Intersegment revenues

(902)

1,336

79

857

1,370

159,426

36,360

12,811

11,218

219,815

Reconciliation of revenues (segment operating revenues):

Elimination of intersegment revenues

(1,370)

Other revenues (a)

4,710

Total consolidated revenues

$

223,155

Less segment expenses: (b)

Provision for credit losses

4,607

0

0

0

Salaries and employee benefits

52,003

16,182

8,638

6,439

Data processing and communications

16,640

1,254

947

845

Occupancy and equipment

12,383

987

412

129

Legal and professional fees

2,513

1,812

88

88

Business development and marketing

2,036

159

272

89

Other segment items (c)

7,556

2,125

449

186

Segment adjusted income before income taxes

$

61,688

$

13,841

$

2,005

$

3,442

$

80,976

Reconciliation of profit or loss (segment adjusted income before income taxes):

Gain on equity securities

4,710

Amortization of intangible assets

(4,408)

Litigation accrual

(335)

Acquisition-related contingent consideration adjustments

103

Acquisition expenses

(231)

Total consolidated income before income taxes

$

80,815

Other segment disclosures:

Interest income

$

184,178

$

831

$

54

$

481

$

185,544

Reconciliation of interest income:

Elimination of intersegment interest income

(1,192)

Total consolidated interest income

$

184,352

Interest expense

$

46,280

$

0

$

0

$

120

$

46,400

Reconciliation of interest expense:

Elimination of intersegment interest expense

(1,192)

Total consolidated interest expense

$

45,208

Depreciation (d)

$

5,707

$

235

$

85

$

59

$

6,086

Amortization of intangible assets

1,057

1,827

1,191

333

4,408

Goodwill

764,714

91,046

30,816

14,074

900,650

Core deposit intangibles, net

12,689

0

0

3,043

15,732

Other intangibles, net

435

16,445

21,167

9,265

47,312

Segment assets

17,436,748

228,872

114,278

204,383

17,984,281

 

 

 

 

 

 

 

 

 

Reconciliation of segment assets:

 

 

 

 

 

 

 

 

 

Elimination of intersegment cash and deposits

(220,511)

Total consolidated assets

$

17,763,770

(a)Other revenues includes $4,710 of gain on equity securities.

(b)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.

(c)Other segment items for each reportable segment includes:

Banking and Corporate – FDIC insurance expense, office supplies and postage expense, fraud losses and other writedowns, education, recruiting and travel expense and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Employee Benefit Services – Certain intersegment technology and rent related overhead expense allocations, education, recruiting and travel expense, office supplies and postage expense and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Insurance Services – Education, recruiting and travel expense, certain intersegment technology and rent related overhead expense allocations and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Wealth Management Services – Education, recruiting and travel expense, certain intersegment technology and rent related overhead expense allocations and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

(d)The amount of depreciation disclosed by reportable segment is included within the data processing and communications and occupancy and equipment expense captions.

Employee

Wealth

 

Banking and

Benefit

Insurance

Management

 

(000’s omitted) 

  ​ ​

Corporate

  ​ ​

Services

  ​ ​

Services

  ​ ​

Services

  ​ ​

Total

Three Months Ended June 30, 2025

 

  ​

 

  ​

 

  ​

 

  ​

  ​ ​ ​

 

  ​

Net interest income from external customers

$

124,615

$

133

$

0

$

0

$

124,748

Noninterest revenues from external customers

19,728

32,681

13,388

8,712

74,509

Revenues from external customers

144,343

32,814

13,388

8,712

199,257

Intersegment revenues

(421)

1,078

76

507

1,240

143,922

33,892

13,464

9,219

200,497

Reconciliation of revenues (segment operating revenues):

Elimination of intersegment revenues

(1,240)

Other revenues (a)

(1)

Total consolidated revenues

$

199,256

Less segment expenses: (b)

Provision for credit losses

4,117

0

0

0

Salaries and employee benefits

48,647

16,574

8,884

5,699

Data processing and communications

13,953

1,196

855

694

Occupancy and equipment

10,107

881

391

133

Legal and professional fees

2,600

1,570

179

202

Business development and marketing

3,644

71

260

27

Other segment items (c)

6,362

1,689

648

115

Segment adjusted income before income taxes

$

54,492

$

11,911

$

2,247

$

2,349

$

70,999

Reconciliation of profit or loss (segment adjusted income before income taxes):

Loss on equity securities

(1)

Amortization of intangible assets

(3,369)

Restructuring expenses

(1,525)

Acquisition expenses

(67)

Total consolidated income before income taxes

$

66,037

Other segment disclosures:

Interest income

$

172,745

$

595

$

50

$

130

$

173,520

Reconciliation of interest income:

Elimination of intersegment interest income

(642)

Total consolidated interest income

$

172,878

Interest expense

$

48,772

$

0

$

0

$

0

$

48,772

Reconciliation of interest expense:

Elimination of intersegment interest expense

(642)

Total consolidated interest expense

$

48,130

Depreciation (d)

$

3,328

$

176

$

102

$

51

$

3,657

Amortization of intangible assets

585

1,774

883

127

3,369

Goodwill

732,598

90,959

27,822

3,438

854,817

Core deposit intangibles, net

3,963

0

0

0

3,963

Other intangibles, net

621

21,992

16,082

906

39,601

Segment assets

16,429,774

223,464

72,623

39,132

16,764,993

 

 

 

 

 

 

 

 

 

Reconciliation of segment assets:

 

 

 

 

 

 

 

 

 

Elimination of intersegment cash and deposits

(99,975)

Total consolidated assets

$

16,665,018

(a)Other revenues includes $1 of loss on equity securities.

(b)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.

(c)Other segment items for each reportable segment includes:

Banking and Corporate – FDIC insurance expense, office supplies and postage expense, fraud losses and other writedowns, education, recruiting and travel expense and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Employee Benefit Services – Certain intersegment technology and rent related overhead expense allocations, education, recruiting and travel expense, office supplies and postage expense and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Insurance Services – Education, recruiting and travel expense, certain intersegment technology and rent related overhead expense allocations and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Wealth Management Services – Education, recruiting and travel expense, certain intersegment technology and rent related overhead expense allocations and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

(d)The amount of depreciation disclosed by reportable segment is included within the data processing and communications and occupancy and equipment expense captions.

  ​ ​ ​

  ​ ​ ​

Employee

  ​ ​ ​

  ​ ​ ​

Wealth

  ​ ​ ​

Banking and

Benefit

Insurance

Management

(000’s omitted)

Corporate

Services

Services

Services

Total

Six Months Ended June 30, 2026

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Net interest income (expense) from external customers

$

273,668

$

272

$

0

$

(84)

$

273,856

Noninterest revenues from external customers

 

42,991

69,476

25,781

20,817

 

159,065

Revenues from external customers

 

316,659

 

69,748

 

25,781

 

20,733

 

432,921

Equity in net loss of investees accounted for by the equity method

0

0

(789)

0

(789)

Intersegment revenues

 

(1,702)

2,923

150

1,548

2,919

 

314,957

 

72,671

 

25,142

 

22,281

 

435,051

Reconciliation of revenues (segment operating revenues):

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Elimination of intersegment revenues

 

  ​

 

  ​

 

  ​

 

(2,919)

Other revenues (a)

 

  ​

 

  ​

 

  ​

 

4,309

Total consolidated revenues

 

  ​

 

  ​

 

  ​

$

436,441

Less segment expenses: (b)

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Provision for credit losses

10,243

0

0

0

 

  ​

Salaries and employee benefits

102,133

32,828

17,220

12,360

 

  ​

Data processing and communications

31,588

2,471

1,918

1,580

 

  ​

Occupancy and equipment

25,675

2,016

854

273

 

  ​

Legal and professional fees

5,509

3,882

167

312

 

  ​

Business development and marketing

4,259

263

412

157

 

  ​

Other segment items (c)

14,251

3,043

717

250

 

  ​

Segment adjusted income before income taxes

$

121,299

$

28,168

$

3,854

$

7,349

$

160,670

Reconciliation of profit or loss (segment adjusted income before income taxes):

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Gain on equity securities

 

  ​

 

  ​

 

  ​

 

4,309

Amortization of intangible assets

 

  ​

 

  ​

 

  ​

 

(8,654)

Litigation accrual

(335)

Acquisition-related contingent consideration adjustments

103

Acquisition expenses

 

  ​

 

  ​

 

  ​

 

(664)

Total consolidated income before income taxes

 

  ​

 

  ​

 

  ​

$

155,429

Other segment disclosures:

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Interest income

$

364,031

$

1,777

$

99

$

652

$

366,559

Reconciliation of interest income:

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Elimination of intersegment interest income

 

  ​

 

  ​

 

  ​

 

(2,220)

Total consolidated interest income

 

  ​

 

  ​

 

  ​

$

364,339

Interest expense

$

92,583

$

0

$

0

$

120

$

92,703

Reconciliation of interest expense:

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Elimination of intersegment interest expense

 

  ​

 

  ​

 

  ​

 

(2,220)

Total consolidated interest expense

 

  ​

 

  ​

 

  ​

$

90,483

Depreciation (d)

$

10,629

$

435

$

173

$

104

$

11,341

Amortization of intangible assets

2,152

3,661

2,379

462

 

8,654

(a)Other revenues includes $4,309 of gain on equity securities.

(b)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.

(c)Other segment items for each reportable segment includes:

Banking and Corporate – FDIC insurance expense, office supplies and postage expense, fraud losses and other writedowns, education, recruiting and travel expense and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Employee Benefit Services – Certain intersegment technology and rent related overhead expense allocations, education, recruiting and travel expense, office supplies and postage expense and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Insurance Services – Education, recruiting and travel expense, certain intersegment technology and rent related overhead expense allocations and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Wealth Management Services – Education, recruiting and travel expense, certain intersegment technology and rent related overhead expense allocations and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

(d)The amount of depreciation disclosed by reportable segment is included within the data processing and communications and occupancy and equipment expense captions.

  ​ ​ ​

  ​ ​ ​

Employee

  ​ ​ ​

  ​ ​ ​

Wealth

  ​ ​ ​

Banking and

Benefit

Insurance

Management

(000’s omitted)

Corporate

Services

Services

Services

Total

Six Months Ended June 30, 2025

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Net interest income from external customers

$

244,702

$

258

$

0

$

0

$

244,960

Noninterest revenues from external customers

 

38,544

 

65,565

 

27,589

 

18,602

 

150,300

Revenues from external customers

 

283,246

 

65,823

 

27,589

 

18,602

 

395,260

Intersegment revenues

 

(852)

2,185

145

1,103

2,581

 

282,394

 

68,008

 

27,734

 

19,705

 

397,841

Reconciliation of revenues (segment operating revenues):

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Elimination of intersegment revenues

 

  ​

 

  ​

 

  ​

 

(2,581)

Other revenues (a)

 

  ​

 

  ​

 

  ​

 

244

Total consolidated revenues

 

  ​

 

  ​

 

  ​

$

395,504

Less segment expenses: (b)

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Provision for credit losses

 

10,807

0

0

0

 

  ​

Salaries and employee benefits

 

95,772

32,629

17,231

11,429

 

  ​

Data processing and communications

 

27,440

2,279

1,728

1,373

 

  ​

Occupancy and equipment

 

21,292

1,837

832

275

 

  ​

Legal and professional fees

 

6,070

2,996

279

310

 

  ​

Business development and marketing

 

6,567

87

446

31

 

  ​

Other segment items (c)

 

13,681

2,829

863

303

 

  ​

Segment adjusted income before income taxes

$

100,765

$

25,351

$

6,355

$

5,984

$

138,455

Reconciliation of profit or loss (segment adjusted income before income taxes):

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Gain on equity securities

 

  ​

 

  ​

 

  ​

 

244

Amortization of intangible assets

 

  ​

 

  ​

 

  ​

 

(6,851)

Restructuring expenses

(1,525)

Acquisition expenses

 

  ​

 

  ​

 

  ​

 

(68)

Litigation accrual

 

  ​

 

  ​

 

  ​

 

50

Total consolidated income before income taxes

 

  ​

 

  ​

 

  ​

$

130,305

Other segment disclosures:

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Interest income

$

340,267

$

1,196

$

94

$

258

$

341,815

Reconciliation of interest income:

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Elimination of intersegment interest income

 

  ​

 

  ​

 

  ​

 

(1,290)

Total consolidated interest income

 

  ​

 

  ​

 

  ​

$

340,525

Interest expense

$

96,855

$

0

$

0

$

0

$

96,855

Reconciliation of interest expense:

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Elimination of intersegment interest expense

 

  ​

 

  ​

 

  ​

 

(1,290)

Total consolidated interest expense

 

  ​

 

  ​

 

  ​

$

95,565

Depreciation (d)

$

6,628

$

364

$

208

$

101

$

7,301

Amortization of intangible assets

 

1,288

 

3,491

 

1,807

 

265

 

6,851

(a)Other revenues includes $244 of gain on equity securities.

(b)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.

(c)Other segment items for each reportable segment includes:

Banking and Corporate – FDIC insurance expense, office supplies and postage expense, fraud losses and other writedowns, education, recruiting and travel expense and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Employee Benefit Services – Certain intersegment technology and rent related overhead expense allocations, education, recruiting and travel expense, office supplies and postage expense and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Insurance Services – Education, recruiting and travel expense, certain intersegment technology and rent related overhead expense allocations and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

Wealth Management Services – Education, recruiting and travel expense, certain intersegment technology and rent related overhead expense allocations and various miscellaneous expenses partially offset by a benefit related to the non-service related components of the Company's pension.

(d)The amount of depreciation disclosed by reportable segment is included within the data processing and communications and occupancy and equipment expense captions.