Citizens & Northern (CZNC) 8-K C&N DECLARES DIVIDEND AND Announces FOURTH QUARTER 2020 UNAUDITED Financial RESULTS

EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	AS OF OR FOR THE
	YEARS ENDED						%
	December 31,						INCREASE
	2020			2019			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	19,222		$	19,504		(1.45)	%
Return on Average Assets (Annualized)		0.96	%		1.27	%	(24.41)	%
Return on Average Equity (Annualized)		7.03	%		8.50	%	(17.29)	%
BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,239,100		$	1,654,145		35.36	%
Available-for-Sale Debt Securities		349,332			346,723		0.75	%
Loans (Net)		1,632,824			1,172,386		39.27	%
Allowance for Loan Losses		11,385			9,836		15.75	%
Deposits and Repo Sweep Accounts		1,822,425			1,254,588		45.26	%
OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	278,857		$	178,446		56.27	%
Trust Assets Under Management		1,103,228			1,007,113		9.54	%
SHAREHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.30		$	1.46		(10.96)	%
Net Income - Diluted	$	1.30		$	1.46		(10.96)	%
Dividends - Quarterly	$	1.08		$	1.08		0.00	%
Dividends - Special	$	0.00		$	0.10		(100.00)	%
Common Book Value	$	18.84		$	17.82		5.72	%
Tangible Common Book Value (a)	$	15.30		$	15.66		(2.30)	%
Market Value (Last Trade)	$	19.84		$	28.25		(29.77)	%
Market Value / Common Book Value		105.31	%		158.53	%	(33.57)	%
Market Value / Tangible Common Book Value		129.67	%		180.40	%	(28.12)	%
Price Earnings Multiple (Annualized)		15.26			19.35		(21.14)	%
Dividend Yield (Annualized, Excluding Special Dividend)		5.44	%		3.82	%	42.41	%
Common Shares Outstanding, End of Period		15,911,984			13,716,445		16.01	%

1

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	AS OF OR FOR THE
	YEARS ENDED						%
	December 31,						INCREASE
	2020			2019			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (a)		11.15	%		13.22	%	(15.66)	%
Nonperforming Assets / Total Assets		1.10	%		0.80	%	37.50	%
Allowance for Loan Losses / Total Loans		0.69	%		0.83	%	(16.87)	%
Total Risk Based Capital Ratio (b)		17.49	%		20.58	%	(15.01)	%
Tier 1 Risk Based Capital Ratio (b)		15.58	%		19.08	%	(18.34)	%
Common Equity Tier 1 Risk Based Capital Ratio (b)		15.58	%		19.08	%	(18.34)	%
Leverage Ratio (b)		10.34	%		13.10	%	(21.07)	%
AVERAGE BALANCES
Average Assets	$	2,009,825		$	1,540,469		30.47	%
Average Equity	$	273,351		$	229,446		19.14	%
EFFICIENCY RATIO (c)
Net Interest Income on a Fully Taxable-Equivalent
Basis (c)	$	68,545		$	55,532		23.43	%
Noninterest Income		24,344			19,284		26.24	%
Total (1)	$	92,889		$	74,816		24.16	%
Noninterest Expense Excluding Merger Expenses (2)	$	55,609		$	45,438		22.38	%
Efficiency Ratio = (2)/(1)		59.87	%		60.73	%	(1.42)	%

(a)Tangible book value per common share and tangible common equity as a percentage of tangible assets are non-U.S. GAAP ratios.  Management believes this non-GAAP information is helpful in evaluating the strength of the Corporation's capital and in providing an alternative, conservative valuation of the Corporation's net worth.  The ratios shown above are based on the following calculations of tangible assets and tangible common equity:

Total Assets	$	2,239,100	$	1,654,145
Less: Intangible Assets, Primarily Goodwill		(56,356)		(29,635)
Tangible Assets	$	2,182,744	$	1,624,510
Total Shareholders' Equity	$	299,756	$	244,452
Less: Intangible Assets, Primarily Goodwill		(56,356)		(29,635)
Tangible Common Equity (3)	$	243,400	$	214,817
Common Shares Outstanding, End of Period (4)		15,911,984		13,716,445
Tangible Common Book Value per Share = (3)/(4)	$	15.30	$	15.66

(b)Capital ratios for the most recent period are estimated.

(c)The efficiency ratio is a non-GAAP ratio that is calculated as shown above.  For purposes of calculating the efficiency ratio, net interest income on a fully taxable-equivalent basis includes amounts of interest income on tax-exempt securities and loans that have been increased to a fully taxable-equivalent basis, using the Corporation's marginal federal income tax rate of 21%. In the calculation above, management excluded merger-related expenses, loss on prepayment of borrowings and net gains on available-for-sale debt securities.

2

QUARTERLY CONDENSED, CONSOLIDATED

INCOME STATEMENT INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	For the Three Months Ended :
	December 31,		September 30,		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,
	2020		2020		2020		2020		2019		2019		2019		2019
Interest income	$	21,859	$	21,751	$	16,513	$	17,037	$	17,290	$	17,277	$	17,139	$	13,065
Interest expense		2,104		2,469		2,267		2,755		2,999		3,000		2,934		1,350
Net interest income		19,755		19,282		14,246		14,282		14,291		14,277		14,205		11,715
Provision (credit) for loan losses		620		1,941		(176)		1,528		652		1,158		(4)		(957)
Net interest income after provision (credit) for loan losses		19,135		17,341		14,422		12,754		13,639		13,119		14,209		12,672
Noninterest income		6,565		6,970		5,528		5,281		5,066		4,963		4,849		4,406
Net gains on securities		144		25		0		0		3		13		7		0
Loss on prepayment of borrowings		1,636		0		0		0		0		0		0		0
Merger-related expenses		182		6,402		983		141		281		206		3,301		311
Other noninterest expenses		15,775		14,648		12,274		12,912		11,834		11,486		11,422		10,696
Income before income tax provision		8,251		3,286		6,693		4,982		6,593		6,403		4,342		6,071
Income tax provision		1,481		438		1,255		816		1,135		1,096		693		981
Net income	$	6,770	$	2,848	$	5,438	$	4,166	$	5,458	$	5,307	$	3,649	$	5,090
Net income attributable to common shares	$	6,727	$	2,830	$	5,405	$	4,146	$	5,431	$	5,281	$	3,630	$	5,063
Basic earnings per common share	$	0.43	$	0.18	$	0.39	$	0.30	$	0.40	$	0.39	$	0.27	$	0.41
Diluted earnings per common share	$	0.43	$	0.18	$	0.39	$	0.30	$	0.40	$	0.39	$	0.27	$	0.41

3

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)

	As of:
	Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
	2020		2020		2020		2020		2019		2019		2019		2019
ASSETS
Cash & Due from Banks	$	101,857	$	174,478	$	77,642	$	32,678	$	35,202	$	51,443	$	39,505	$	44,002
Available-for-Sale Debt Securities		349,332		340,545		332,188		342,416		346,723		363,467		363,465		357,646
Loans Held for Sale		942		1,200		1,258		579		767		2,033		1,131		0
Loans, Net		1,632,824		1,680,617		1,230,387		1,156,143		1,172,386		1,130,143		1,108,483		817,136
Bank-Owned Life Insurance		30,096		29,942		18,843		18,745		18,641		18,535		18,430		18,331
Bank Premises and Equipment, net		21,526		21,504		18,332		18,023		17,170		16,038		16,114		14,663
Intangible Assets		56,356		56,585		29,511		29,573		29,635		29,939		30,013		11,949
Other Assets		46,167		47,922		37,305		31,288		33,621		30,989		32,544		26,273
TOTAL ASSETS	$	2,239,100	$	2,352,793	$	1,745,466	$	1,629,445	$	1,654,145	$	1,642,587	$	1,609,685	$	1,290,000
LIABILITIES
Deposits	$	1,820,469	$	1,871,514	$	1,381,178	$	1,249,912	$	1,252,660	$	1,294,882	$	1,284,143	$	1,039,911
Repo Sweep Accounts		1,956		2,313		2,204		2,407		1,928		3,767		3,192		5,132
Total Deposits and Repo Sweeps		1,822,425		1,873,827		1,383,382		1,252,319		1,254,588		1,298,649		1,287,335		1,045,043
Borrowed Funds		72,674		141,344		85,104		108,144		136,419		75,714		62,574		32,844
Subordinated Debt		16,553		16,572		6,500		6,500		6,500		7,000		7,000		0
Other Liabilities		27,692		24,734		14,689		11,254		12,186		18,285		13,060		9,986
TOTAL LIABILITIES		1,939,344		2,056,477		1,489,675		1,378,217		1,409,693		1,399,648		1,369,969		1,087,873
SHAREHOLDERS' EQUITY
Common Shareholders' Equity, Excluding Accumulated Other Comprehensive Income (Loss)		287,961		284,707		244,080		241,754		240,761		238,479		236,284		202,768
Accumulated Other Comprehensive Income (Loss):
Net Unrealized Gains (Losses) on Available-for-sale Securities		11,676		11,376		11,472		9,230		3,511		4,173		3,138		(941)
Defined Benefit Plans Adjustment, Net		119		233		239		244		180		287		294		300
TOTAL SHAREHOLDERS' EQUITY		299,756		296,316		255,791		251,228		244,452		242,939		239,716		202,127
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	2,239,100	$	2,352,793	$	1,745,466	$	1,629,445	$	1,654,145	$	1,642,587	$	1,609,685	$	1,290,000

4

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)

	December 31, 2020				September 30, 2020				December 31, 2019
	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	12,184	$	12,182	$	12,228	$	12,226	$	0	$	0
Obligations of U.S. Government agencies		25,349		26,344		15,348		16,355		16,380		17,000
Obligations of states and political subdivisions:
Tax-exempt		116,427		122,401		104,821		109,668		68,787		70,760
Taxable		45,230		47,452		42,079		44,195		35,446		36,303
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		36,853		38,176		44,697		46,211		58,875		59,210
Residential collateralized mortgage obligations		56,048		57,467		67,635		69,337		115,025		114,723
Commercial mortgage-backed securities		42,461		45,310		39,337		42,553		47,765		48,727
Total Available-for-Sale Debt Securities	$	334,552	$	349,332	$	326,145	$	340,545	$	342,278	$	346,723

Summary of Loans by Type

(Excludes Loans Held for Sale)

(In Thousands)

	December 31,		September 30,		December 31,
	2020		2020		2019
Residential mortgage:
Residential mortgage loans - first liens	$	532,947	$	541,827	$	510,641
Residential mortgage loans - junior liens		27,311		27,907		27,503
Home equity lines of credit		39,301		40,143		33,638
1-4 Family residential construction		20,613		29,146		14,798
Total residential mortgage		620,172		639,023		586,580
Commercial:
Commercial loans secured by real estate		531,810		530,874		301,227
Commercial and industrial		159,577		156,169		126,374
Small Business Administration - Paycheck Protection Program		132,269		163,050		0
Political subdivisions		53,221		47,883		53,570
Commercial construction and land		42,874		41,906		33,555
Loans secured by farmland		11,736		11,913		12,251
Multi-family (5 or more) residential		55,811		62,330		31,070
Agricultural loans		3,164		3,561		4,319
Other commercial loans		17,289		17,385		16,535
Total commercial		1,007,751		1,035,071		578,901
Consumer		16,286		17,276		16,741
Total		1,644,209		1,691,370		1,182,222
Less: allowance for loan losses		(11,385)		(10,753)		(9,836)
Loans, net	$	1,632,824	$	1,680,617	$	1,172,386

5

Loans Held for Sale

(In Thousands)

	December 31,		September 30,		December 31,
	2020		2020		2019
Residential mortgage loans originated and serviced - outstanding balance	$	279,799	$	255,662	$	179,213
Less: outstanding balance of loans sold		(278,857)		(254,462)		(178,446)
Loans held for sale, net	$	942	$	1,200	$	767

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(In Thousands)

	3 Months		3 Months		Year		Year
	Ended		Ended		Ended		Ended
	December 31,		September 30,		December 31,		December 31,
	2020		2020		2020		2019
Balance, beginning of period	$	10,753	$	11,026	$	9,836	$	9,309
Charge-offs		(22)		(2,249)		(2,465)		(379)
Recoveries		34		35		101		57
Net recoveries (charge-offs)		12		(2,214)		(2,364)		(322)
Provision for loan losses		620		1,941		3,913		849
Balance, end of period	$	11,385	$	10,753	$	11,385	$	9,836

6

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS

AND TROUBLED DEBT RESTRUCTURINGS (TDRs)

(Dollars In Thousands)

	December 31,			September 30,			December 31,
	2020			2020			2019
Impaired loans with a valuation allowance	$	8,082		$	8,085		$	3,375
Impaired loans without a valuation allowance		2,895			3,080			1,670
Purchased credit impaired loans		6,841			7,447			441
Total impaired loans	$	17,818		$	18,612		$	5,486
Total loans past due 30-89 days and still accruing	$	5,918		$	3,499		$	8,889
Nonperforming assets:
Purchased credit impaired loans	$	6,841		$	7,447		$	441
Other nonaccrual loans		14,575			15,349			8,777
Total nonaccrual loans		21,416			22,796			9,218
Total loans past due 90 days or more and still accruing		1,975			2,308			1,207
Total nonperforming loans		23,391			25,104			10,425
Foreclosed assets held for sale (real estate)		1,338			2,369			2,886
Total nonperforming assets	$	24,729		$	27,473		$	13,311
Loans subject to troubled debt restructurings (TDRs):
Performing	$	166		$	258		$	889
Nonperforming		7,285			7,779			1,737
Total TDRs	$	7,451		$	8,037		$	2,626
Total nonperforming loans as a % of loans		1.42	%		1.48	%		0.88	%
Total nonperforming assets as a % of assets		1.10	%		1.17	%		0.80	%
Allowance for loan losses as a % of total loans		0.69	%		0.64	%		0.83	%
Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (a)		1.05	%		1.05	%		0.93	%
Allowance for loan losses as a % of nonperforming loans		48.67	%		42.83	%		94.35	%
(a) Credit adjustment on purchased non-impaired loans at end of period	$	5,979		$	7,127		$	1,216
Allowance for loan losses		11,385			10,753			9,836
Total credit adjustment on purchased non-impaired loans at end of period and allowance for loan losses (1)	$	17,364		$	17,880		$	11,052
Total loans receivable	$	1,644,209		$	1,691,370		$	1,182,222
Credit adjustment on purchased non-impaired loans at end of period		5,979			7,127			1,216
Total (2)	$	1,650,188		$	1,698,497		$	1,183,438
Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (1)/(2)		1.05	%		1.05	%		0.93	%

7

SUMMARY OF SELECTED FAIR VALUE ADJUSTMENTS RELATED TO ACQUISITION OF

COVENANT FINANCIAL, INC

(In Thousands)					Borrowed		Subordinated
	Loans		Deposits		Funds		Debt
Amortized cost at acquisition	$	472,012	$	479,846	$	62,700	$	10,000
Fair value adjustments:
Market rates		2,909		1,950		1,275		91
Credit adjustment on non-impaired loans		(7,219)
Credit adjustment on impaired loans		(3,466)
Fair value at acquisition	$	464,236	$	481,796	$	63,975	$	10,091
Increase (decrease) in interest income
recognized in 2020 from fair value adjustments related to:
Market rates	$	(1,442)
Credit adjustment on non-impaired loans		1,857
Total	$	415
(Decrease) in interest expense recognized in 2020
from fair value adjustments related to market rates			$	(979)	$	(424)	$	(38)

ADJUSTMENTS TO GROSS AMORTIZED COST OF LOANS – TOTAL INCLUDING ACQUISITIONS OF

COVENANT FINANCIAL, INC. AND MONUMENT BANCORP, INC.

(In Thousands)
	Three Months Ended				Year ended
	December 31,		December 31,		December 31,		December 31,
	2020		2019		2020		2019
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	1,354	$	(1,548)	$	(1,415)	$	0
Market rate adjustment recorded in acquisition		0		0		2,909		(1,807)
(Amortization) accretion recognized in interest income		(636)		133		(776)		392
Adjustments to gross amortized cost of loans at end of period	$	718	$	(1,415)	$	718	$	(1,415)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(7,127)	$	(1,393)	$	(1,216)	$	0
Credit adjustment recorded in acquisition		0		0		(7,219)		(1,914)
Accretion recognized in interest income		1,148		177		2,456		698
Adjustments to gross amortized cost of loans at end of period	$	(5,979)	$	(1,216)	$	(5,979)	$	(1,216)

PURCHASED CREDIT IMPAIRED (PCI) LOANS – TOTAL INCLUDING PCI LOANS ACQUIRED FROM

COVENANT FINANCIAL, INC. AND MONUMENT BANCORP, INC.

(In Thousands)
	December 31,		December 31,
	2020		2019
Outstanding balance	$	10,316	$	759
Carrying amount		6,841		441

8

Analysis of Average Daily Balances and Rates

(Dollars in Thousands)

	3 Months				3 Months				3 Months
	Ended		Rate of		Ended		Rate of		Ended		Rate of
	12/31/2020		Return/		9/30/2020		Return/		12/31/2019		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	116,475	0.20	%	$	147,543	0.19	%	$	17,577	2.03	%
Available-for-sale debt securities, at amortized cost:
Taxable		217,321	1.98	%		227,483	2.59	%		280,333	2.29	%
Tax-exempt		113,888	2.78	%		94,058	2.95	%		69,482	3.01	%
Total available-for-sale debt securities		331,209	2.26	%		321,541	2.70	%		349,815	2.43	%
Loans receivable:
Taxable		1,454,733	4.96	%		1,480,247	4.91	%		1,100,170	5.28	%
Paycheck Protection Program (Taxable)		152,504	3.90	%		162,234	2.18	%		0
Tax-exempt		62,309	3.38	%		63,111	3.57	%		66,195	3.81	%
Total loans receivable		1,669,546	4.81	%		1,705,592	4.60	%		1,166,365	5.20	%
Other earning assets		2,390	3.16	%		3,361	3.55	%		1,721	3.23	%
Total Earning Assets		2,119,620	4.15	%		2,178,037	4.02	%		1,535,478	4.53	%
Cash		31,312				33,291				19,983
Unrealized gain/loss on securities		13,875				15,277				5,056
Allowance for loan losses		(11,107)				(11,473)				(9,469)
Bank-owned life insurance		30,002				30,078				18,573
Bank premises and equipment		21,539				21,763				16,801
Intangible assets		56,863				57,008				29,902
Other assets		45,491				48,451				34,551
Total Assets	$	2,307,595			$	2,372,432			$	1,650,875
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	371,425	0.25	%	$	382,997	0.28	%	$	221,052	0.44	%
Money market		389,993	0.32	%		386,848	0.38	%		202,217	0.52	%
Savings		202,679	0.11	%		201,401	0.11	%		169,342	0.16	%
Time deposits		416,281	0.87	%		449,964	0.96	%		379,446	1.81	%
Total interest-bearing deposits		1,380,378	0.43	%		1,421,210	0.50	%		972,057	0.94	%
Borrowed funds:
Short-term		27,422	0.46	%		44,660	0.65	%		54,705	2.03	%
Long-term		93,835	1.36	%		102,857	1.40	%		56,564	2.03	%
Subordinated debt		16,562	5.91	%		16,540	5.94	%		7,000	6.57	%
Total borrowed funds		137,819	1.73	%		164,057	1.65	%		118,269	2.30	%
Total Interest-bearing Liabilities		1,518,197	0.55	%		1,585,267	0.62	%		1,090,326	1.09	%
Demand deposits		465,252				463,333				299,090
Other liabilities		26,746				26,367				18,446
Total Liabilities		2,010,195				2,074,967				1,407,862
Stockholders' equity, excluding accumulated other comprehensive income/loss		286,209				285,158				238,738
Accumulated other comprehensive income/loss		11,191				12,307				4,275
Total Shareholders' Equity		297,400				297,465				243,013
Total Liabilities and Shareholders' Equity	$	2,307,595			$	2,372,432			$	1,650,875
Interest Rate Spread			3.60	%			3.40	%			3.44	%
Net Interest Income/Earning Assets			3.76	%			3.57	%			3.75	%
Total Deposits (Interest-bearing and Demand)	$	1,845,630			$	1,884,543			$	1,271,147

(1)Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

(2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

(3) Rates of return on earning assets and costs of funds have been presented on an annualized basis.

9

Analysis of Average Daily Balances and Rates

(Dollars in Thousands)

	Year				Year
	Ended		Rate of		Ended		Rate of
	12/31/2020		Return/		12/31/2019		Return/
	Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds%
EARNING ASSETS
Interest-bearing due from banks	$	80,587	0.31	%	$	21,711	2.37	%
Available-for-sale debt securities, at amortized cost:
Taxable		238,407	2.32	%		284,072	2.47	%
Tax-exempt		90,038	2.96	%		73,212	3.45	%
Total available-for-sale debt securities		328,445	2.50	%		357,284	2.67	%
Loans receivable:
Taxable		1,285,383	5.01	%		988,560	5.37	%
Paycheck Protection Program (Taxable)		98,466	2.97	%		0
Tax-exempt		61,249	3.63	%		68,999	3.82	%
Total loans receivable		1,445,098	4.82	%		1,057,559	5.27	%
Other earning assets		2,357	3.39	%		1,439	3.13	%
Total Earning Assets		1,856,487	4.21	%		1,437,993	4.58	%
Cash		25,439				19,906
Unrealized gain/loss on securities		12,487				1,347
Allowance for loan losses		(11,018)				(8,876)
Bank-owned life insurance		24,415				18,543
Bank premises and equipment		19,826				15,914
Intangible assets		43,330				25,531
Other assets		38,859				30,111
Total Assets	$	2,009,825			$	1,540,469
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	310,782	0.31	%	$	217,910	0.53	%
Money market		298,736	0.39	%		194,849	0.49	%
Savings		189,316	0.12	%		167,677	0.15	%
Time deposits	��	397,974	1.23	%		344,446	1.69	%
Total interest-bearing deposits		1,196,808	0.60	%		924,882	0.89	%
Borrowed funds:
Short-term		34,212	1.07	%		33,521	2.19	%
Long-term		83,500	1.55	%		43,917	2.31	%
Subordinated debt		11,553	6.11	%		5,274	6.58	%
Total borrowed funds		129,265	1.83	%		82,712	2.53	%
Total Interest-bearing Liabilities		1,326,073	0.72	%		1,007,594	1.02	%
Demand deposits		389,601				288,805
Other liabilities		20,800				14,624
Total Liabilities		1,736,474				1,311,023
Stockholders' equity, excluding accumulated other comprehensive income/loss		263,253				228,103
Accumulated other comprehensive income/loss		10,098				1,343
Total Shareholders' Equity		273,351				229,446
Total Liabilities and Shareholders' Equity	$	2,009,825			$	1,540,469
Interest Rate Spread			3.49	%			3.56	%
Net Interest Income/Earning Assets			3.69	%			3.86	%
Total Deposits (Interest-bearing and Demand)	$	1,586,409			$	1,213,687

(1)Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

(2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

(3) Rates of return on earning assets and costs of funds have been presented on an annualized basis.

10

COMPARISON OF NONINTEREST INCOME

(In Thousands)

	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2020		2020		2019		2020		2019
Trust and financial management revenue	$	1,682	$	1,595	$	1,684	$	6,321	$	6,106
Brokerage revenue		316		351		265		1,343		1,266
Insurance commissions, fees and premiums		58		41		18		184		167
Service charges on deposit accounts		1,105		1,045		1,395		4,231		5,358
Service charges and fees		74		83		73		304		332
Interchange revenue from debit card transactions		817		828		690		3,094		2,754
Net gains from sales of loans		1,472		2,052		306		5,403		924
Loan servicing fees, net		198		(87)		91		(61)		100
Increase in cash surrender value of life insurance		154		159		106		515		402
Other noninterest income		689		903		438		3,010		1,875
Total noninterest income, excluding realized gains on securities, net	$	6,565	$	6,970	$	5,066	$	24,344	$	19,284

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)

	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2020		2020		2019		2020		2019
Salaries and wages	$	8,062	$	6,833	$	5,395	$	25,599	$	20,644
Pensions and other employee benefits		1,936		1,870		1,545		7,463		5,837
Occupancy expense, net		795		806		653		3,010		2,629
Furniture and equipment expense		399		383		322		1,451		1,289
Data processing expenses		1,144		1,251		836		4,453		3,403
Automated teller machine and interchange expense		319		340		340		1,231		1,103
Pennsylvania shares tax		422		422		345		1,689		1,380
Professional fees		427		422		274		1,692		1,069
Telecommunications		213		231		207		863		744
Directors' fees		207		175		187		730		673
Other noninterest expense		1,851		1,915		1,730		7,428		6,667
Total noninterest expense, excluding merger-related expenses and loss on prepayment of borrowings		15,775		14,648		11,834		55,609		45,438
Merger-related expenses		182		6,402		281		7,708		4,099
Loss on prepayment of borrowings		1,636		0		0		1,636		0
Total noninterest expense	$	17,593	$	21,050	$	12,115	$	64,953	$	49,537

11