Citizens & Northern (CZNC) 8-K C&N Declares Dividend and Announces First Quarter 2023 Unaudited Financial Results

EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	1ST		1ST
	QUARTER		QUARTER
	2023		2022
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	26,139	$	21,773	$	4,366	20.05	%
Interest Expense		5,358		1,441		3,917	271.83	%
Net Interest Income		20,781		20,332		449	2.21	%
(Credit) Provision for Credit Losses		(352)		891		(1,243)	(139.51)	%
Net Interest Income After (Credit) Provision for Credit Losses		21,133		19,441		1,692	8.70	%
Noninterest Income		5,609		5,821		(212)	(3.64)	%
Net Gains on Available-for-sale Debt Securities		7		2		5	250.00	%
Noninterest Expense		19,087		16,886		2,201	13.03	%
Income Before Income Tax Provision		7,662		8,378		(716)	(8.55)	%
Income Tax Provision		1,409		1,483		(74)	(4.99)	%
Net Income	$	6,253	$	6,895	$	(642)	(9.31)	%
Net Income Attributable to Common Shares (1)	$	6,201	$	6,835	$	(634)	(9.28)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.40	$	0.44	$	(0.04)	(9.09)	%
Net Income - Diluted	$	0.40	$	0.44	$	(0.04)	(9.09)	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,409,680		15,645,474
Number of Shares Used in Computation - Diluted		15,410,617		15,649,175

(1) Basic and diluted net income per common share are determined based on net income less earnings allocated to nonvested restricted shares with nonforfeitable dividends.

1

CONDENSED, CONSOLIDATED BALANCE SHEET DATA

(Dollars In Thousands)

(Unaudited)

	March 31,		March 31,
	2023		2022		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	52,212	$	114,346	$	(62,134)	(54.34)	%
Available-for-sale Debt Securities		472,814		532,913		(60,099)	(11.28)	%
Loans, Net		1,726,793		1,523,919		202,874	13.31	%
Bank-Owned Life Insurance		31,352		30,805		547	1.78	%
Bank Premises and Equipment, Net		21,277		21,169		108	0.51	%
Deferred Tax Asset, Net		18,914		11,818		7,096	60.04	%
Intangible Assets		55,280		55,711		(431)	(0.77)	%
Other Assets		51,230		39,690		11,540	29.08	%
TOTAL ASSETS	$	2,429,872	$	2,330,371	$	99,501	4.27	%
LIABILITIES
Deposits	$	1,916,040	$	1,960,952	$	(44,912)	(2.29)	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		192,097		22,938		169,159	737.46	%
Senior Notes, Net		14,781		14,717		64	0.43	%
Subordinated Debt, Net		24,634		33,031		(8,397)	(25.42)	%
Other Liabilities		26,752		22,525		4,227	18.77	%
TOTAL LIABILITIES		2,174,304		2,054,163		120,141	5.85	%
STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive Loss		298,365		296,386		1,979	0.67	%
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized Losses on Available-for-sale Debt Securities		(43,271)		(20,492)		(22,779)	111.16	%
Defined Benefit Plans		474		314		160	50.96	%
TOTAL STOCKHOLDERS' EQUITY		255,568		276,208		(20,640)	(7.47)	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,429,872	$	2,330,371	$	99,501	4.27	%

2

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	AS OF OR FOR THE
	THREE MONTHS ENDED						%
	March 31,						INCREASE
	2023			2022			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	6,253		$	6,895		(9.31)	%
Return on Average Assets (Annualized)		1.03	%		1.19	%	(13.45)	%
Return on Average Equity (Annualized)		9.90	%		9.37	%	5.66	%
BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,429,872		$	2,330,371		4.27	%
Available-for-Sale Debt Securities		472,814			532,913		(11.28)	%
Loans, Net		1,726,793			1,523,919		13.31	%
Allowance for Credit Losses:
Allowance for Credit Losses on Loans		18,346			14,271		28.55	%
Allowance for Credit Losses on Off-Balance Sheet Exposures		1,178			660		78.48	%
Deposits		1,916,040			1,960,952		(2.29)	%
OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	321,326		$	338,482		(5.07)	%
Trust Assets Under Management		1,127,439			1,191,595		(5.38)	%
STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	0.40		$	0.44		(9.09)	%
Net Income - Diluted	$	0.40		$	0.44		(9.09)	%
Dividends	$	0.28		$	0.28		0.00	%
Common Book Value	$	16.50		$	17.57		(6.09)	%
Tangible Common Book Value (a)	$	12.93		$	14.03		(7.84)	%
Market Value (Last Trade)	$	21.38		$	24.38		(12.31)	%
Market Value / Common Book Value		129.58	%		138.76	%	(6.62)	%
Market Value / Tangible Common Book Value		165.35	%		173.77	%	(4.85)	%
Price Earnings Multiple (Annualized)		13.36			13.85		(3.54)	%
Dividend Yield (Annualized)		5.24	%		4.59	%	14.16	%
Common Shares Outstanding, End of Period		15,485,035			15,718,723		(1.49)	%

3

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	AS OF OR FOR THE
	THREE MONTHS ENDED						%
	March 31,						INCREASE
	2023			2022			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (a)		8.43	%		9.69	%	(13.00)	%
Nonperforming Assets / Total Assets		0.60	%		0.81	%	(25.93)	%
Allowance for Credit Losses / Total Loans		1.05	%		0.93	%	12.90	%
Total Risk Based Capital Ratio (b)		15.93	%		18.23	%	(12.62)	%
Tier 1 Risk Based Capital Ratio (b)		13.48	%		15.20	%	(11.32)	%
Common Equity Tier 1 Risk Based Capital Ratio (b)		13.48	%		15.20	%	(11.32)	%
Leverage Ratio (b)		10.08	%		10.59	%	(4.82)	%
AVERAGE BALANCES
Average Assets	$	2,420,819		$	2,325,486		4.10	%
Average Equity	$	252,638		$	294,254		(14.14)	%
EFFICIENCY RATIO (c)
Net Interest Income on a Fully Taxable-Equivalent
Basis (c)	$	21,050		$	20,634		2.02	%
Noninterest Income		5,609			5,821		(3.64)	%
Total (1)	$	26,659		$	26,455		0.77	%
Noninterest Expense (2)	$	19,087		$	16,886		13.03	%
Efficiency Ratio = (2)/(1)		71.60	%		63.83	%	12.17	%

(a)Tangible common book value per 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	$	2,429,872	$	2,330,371
Less: Intangible Assets, Primarily Goodwill		(55,280)		(55,711)
Tangible Assets	$	2,374,592	$	2,274,660
Total Stockholders' Equity	$	255,568	$	276,208
Less: Intangible Assets, Primarily Goodwill		(55,280)		(55,711)
Tangible Common Equity (3)	$	200,288	$	220,497
Common Shares Outstanding, End of Period (4)		15,485,035		15,718,723
Tangible Common Book Value per Share = (3)/(4)	$	12.93	$	14.03

(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%. A reconciliation of net interest income under U.S. GAAP as compared to net interest income as adjusted to a fully taxable-equivalent basis is provided in Exhibit 99.2 under the table “COMPARISON OF INTEREST INCOME AND EXPENSE”.

4

QUARTERLY CONDENSED, CONSOLIDATED

INCOME STATEMENT INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	For the Three Months Ended :
	March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2022		2022		2022		2022
Interest income	$	26,139	$	25,855	$	23,710	$	21,309	$	21,773
Interest expense		5,358		3,563		2,831		1,684		1,441
Net interest income		20,781		22,292		20,879		19,625		20,332
(Credit) provision for credit losses		(352)		2,262		3,794		308		891
Net interest income after (credit) provision for credit losses		21,133		20,030		17,085		19,317		19,441
Noninterest income		5,609		6,110		5,651		6,830		5,821
Net gains (losses) on securities		7		(1)		20		(1)		2
Noninterest expense		19,087		16,587		17,443		17,039		16,886
Income before income tax provision		7,662		9,552		5,313		9,107		8,378
Income tax provision		1,409		1,773		858		1,618		1,483
Net income	$	6,253	$	7,779	$	4,455	$	7,489	$	6,895
Net income attributable to common shares	$	6,201	$	7,711	$	4,416	$	7,419	$	6,835
Basic earnings per common share	$	0.40	$	0.50	$	0.29	$	0.48	$	0.44
Diluted earnings per common share	$	0.40	$	0.50	$	0.29	$	0.48	$	0.44

5

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)

	As of:
	Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
	2023		2022		2022		2022		2022
ASSETS
Cash & Due from Banks	$	52,212	$	55,048	$	64,044	$	69,187	$	114,346
Available-for-Sale Debt Securities		472,814		498,033		487,980		526,837		532,913
Loans, Net		1,726,793		1,723,425		1,674,076		1,643,057		1,523,919
Bank-Owned Life Insurance		31,352		31,214		31,075		30,941		30,805
Bank Premises and Equipment, Net		21,277		21,574		21,881		21,829		21,169
Deferred Tax Asset, Net		18,914		20,884		22,327		16,331		11,818
Intangible Assets		55,280		55,382		55,492		55,602		55,711
Other Assets		51,230		48,747		43,305		46,934		39,690
TOTAL ASSETS	$	2,429,872	$	2,454,307	$	2,400,180	$	2,410,718	$	2,330,371
LIABILITIES
Deposits	$	1,916,040	$	1,997,593	$	2,039,595	$	1,964,270	$	1,960,952
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		192,097		142,409		57,920		126,833		22,938
Senior Notes, Net		14,781		14,765		14,749		14,733		14,717
Subordinated Debt, Net		24,634		24,607		24,580		24,553		33,031
Other Liabilities		26,752		25,608		24,547		21,710		22,525
TOTAL LIABILITIES		2,174,304		2,204,982		2,161,391		2,152,099		2,054,163
STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss		298,365		299,203		295,258		294,621		296,386
Accumulated Other Comprehensive Loss:
Net Unrealized (Losses) Gains on Available-for-sale Securities		(43,271)		(50,370)		(56,766)		(36,307)		(20,492)
Defined Benefit Plans		474		492		297		305		314
TOTAL STOCKHOLDERS' EQUITY		255,568		249,325		238,789		258,619		276,208
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,429,872	$	2,454,307	$	2,400,180	$	2,410,718	$	2,330,371

6

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)

	March 31, 2023				December 31, 2022				March 31, 2022
	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	33,924	$	31,163	$	35,166	$	31,836	$	38,152	$	36,494
Obligations of U.S. Government agencies		25,479		23,348		25,938		23,430		24,455		23,408
Bank holding company debt securities		28,947		24,723		28,945		25,386		24,942		24,043
Obligations of states and political subdivisions:
Tax-exempt		128,285		117,812		146,149		132,623		149,140		143,633
Taxable		67,076		57,572		68,488		56,812		73,732		69,629
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		109,028		97,807		112,782		99,941		112,122		106,568
Residential collateralized mortgage obligations		42,296		38,117		44,868		40,296		45,628		43,868
Commercial mortgage-backed securities		84,449		74,195		91,388		79,686		90,682		85,270
Private label commercial mortgage-backed securities		8,105		8,077		8,070		8,023		0		0
Total Available-for-Sale Debt Securities	$	527,589	$	472,814	$	561,794	$	498,033	$	558,853	$	532,913

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)

	March 31,		December 31,		March 31,
	2023		2022		2022
Commercial real estate - nonowner occupied
Nonowner occupied	$	457,814	$	454,386	$	364,491
Multi-family (5 or more) residential		58,111		55,406		52,240
1-4 Family - commercial purpose		166,773		165,805		169,887
Total commercial real estate - nonowner occupied		682,698		675,597		586,618
Commercial real estate - owner occupied		221,766		205,910		204,209
All other commercial loans:
Commercial and industrial		83,420		95,368		109,576
Commercial lines of credit		119,109		141,444		102,458
Political subdivisions		85,555		86,663		75,895
Commercial construction and land		70,612		60,892		36,204
Other commercial loans		26,106		25,710		27,216
Total all other commercial loans		384,802		410,077		351,349
Residential mortgage loans:
1-4 Family - residential		372,241		363,005		328,947
1-4 Family residential construction		29,479		30,577		16,945
Total residential mortgage		401,720		393,582		345,892
Consumer loans:
Consumer lines of credit (including HELCs)		35,245		36,650		33,979
All other consumer		18,908		18,224		16,143
Total consumer		54,153		54,874		50,122
Total		1,745,139		1,740,040		1,538,190
Less: allowance for credit losses on loans		(18,346)		(16,615)		(14,271)
Loans, net	$	1,726,793	$	1,723,425	$	1,523,919

7

ADJUSTMENTS TO GROSS AMORTIZED COST OF LOANS

(In Thousands)

	Three Months Ended
	March 31,		December 31,		March 31,
	2023		2022		2022
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(916)	$	(861)	$	(637)
Amortization recognized in interest income		(52)		(55)		(248)
Adjustments to gross amortized cost of loans at end of period	$	(968)	$	(916)	$	(885)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(1,840)	$	(2,095)	$	(3,335)
Accretion recognized in interest income		198		255		553
Adjustments to gross amortized cost of loans at end of period	$	(1,642)	$	(1,840)	$	(2,782)

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS

(Dollars In Thousands)

	March 31,			December 31,			March 31,
	2023			2022			2022
Impaired loans with a valuation allowance	$	5,802		$	3,460		$	6,528
Impaired loans without a valuation allowance		3,507			14,871			1,494
Purchased credit impaired loans		0			1,027			3,983
Total impaired loans	$	9,309		$	19,358		$	12,005
Total loans past due 30-89 days and still accruing	$	5,493		$	7,079		$	3,868
Nonperforming assets:
Purchased credit impaired loans	$	0		$	1,027		$	3,983
Other nonaccrual loans		12,876			22,058			10,962
Total nonaccrual loans		12,876			23,085			14,945
Total loans past due 90 days or more and still accruing		1,216			2,237			3,429
Total nonperforming loans		14,092			25,322			18,374
Foreclosed assets held for sale (real estate)		459			275			531
Total nonperforming assets	$	14,551		$	25,597		$	18,905
Total nonperforming loans as a % of total loans		0.81	%		1.46	%		1.19	%
Total nonperforming assets as a % of assets		0.60	%		1.04	%		0.81	%
Allowance for credit losses as a % of total loans		1.05	%		0.95	%		0.93	%

8

IMPACT OF ASU 2016-13 (CECL)

(In Thousands)

	As Reported
	Under		Pre-ASC 326		Impact of
	ASC 326		Adoption		ASC 326
	January 1, 2023		December 31, 2022		Adoption
Loans receivable	$	1,740,846	$	1,740,040	$	806
Allowance for credit losses on loans		18,719		16,615		2,104
Allowance for credit losses on off-balance sheet exposures		1,218		425		793

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LOANS

(In Thousands)

	3 Months		3 Months		3 Months		Year
	Ended		Ended		Ended		Ended
	March 31,		December 31,		March 31,		December 31,
	2023		2022		2022		2022
Balance, beginning of period	$	16,615	$	16,170	$	13,537	$	13,537
Adoption of ASU 2016-13 (CECL)		2,104		0		0		0
Charge-offs		(67)		(1,828)		(180)		(4,245)
Recoveries		6		11		23		68
Net charge-offs		(61)		(1,817)		(157)		(4,177)
(Credit) provision for credit losses		(312)		2,262		891		7,255
Balance, end of period	$	18,346	$	16,615	$	14,271	$	16,615

ANALYSIS OF THE PROVISION FOR CREDIT LOSSES

(In Thousands)

	3 Months
	Ended
	March 31,
	2023
(Credit) provision for credit losses:
Loans receivable	$	(312)
Off-balance sheet exposures (1)		(40)
Total (credit) provision for credit losses	$	(352)

(1) The (credit) provision for credit losses on off-balance sheet exposures prior to January 1, 2023 was included in other noninterest expense in the consolidated statements of income.

9

COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)

	Three Months Ended
	March 31,		December 31,		March 31,
	2023		2022		2022
INTEREST INCOME
Interest-bearing due from banks	$	278	$	310	$	67
Available-for-sale debt securities:
Taxable		2,211		2,217		1,969
Tax-exempt		767		910		905
Total available-for-sale debt securities		2,978		3,127		2,874
Loans receivable:
Taxable		22,428		21,979		17,974
Paycheck Protection Program		3		59		575
Tax-exempt		713		675		573
Total loans receivable		23,144		22,713		19,122
Other earning assets		8		8		12
Total Interest Income		26,408		26,158		22,075
INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		987		844		194
Money market		873		818		262
Savings		63		66		61
Time deposits		1,307		898		393
Total interest-bearing deposits		3,230		2,626		910
Borrowed funds:
Short-term		1,097		127		1
Long-term - FHLB advances		681		460		49
Senior notes, net		120		120		118
Subordinated debt, net		230		230		363
Total borrowed funds		2,128		937		531
Total Interest Expense		5,358		3,563		1,441
Net Interest Income	$	21,050	$	22,595	$	20,634

Note: Interest income from tax-exempt securities and loans has been adjusted to a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%. The following table is a reconciliation of net interest income under U.S. GAAP as compared to net interest income as adjusted to a fully taxable-equivalent basis.

(In Thousands)	Three Months Ended
	March 31,		December 31,		March 31,
	2023		2022		2022
Net Interest Income Under U.S. GAAP	$	20,781	$	22,292	$	20,332
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		127		167		183
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		142		136		119
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	21,050	$	22,595	$	20,634

10

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
	3/31/2023		Return/		12/31/2022		Return/		3/31/2022		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	31,637	3.56	%	$	40,288	3.05	%	$	84,115	0.32	%
Available-for-sale debt securities, at amortized cost:
Taxable		410,110	2.19	%		415,538	2.12	%		390,301	2.05	%
Tax-exempt		131,392	2.37	%		146,466	2.46	%		144,334	2.54	%
Total available-for-sale debt securities		541,502	2.23	%		562,004	2.21	%		534,635	2.18	%
Loans receivable:
Taxable		1,633,850	5.57	%		1,609,563	5.42	%		1,445,353	5.04	%
Paycheck Protection Program		162	7.51	%		1,044	22.42	%		18,849	12.37	%
Tax-exempt		91,851	3.15	%		88,583	3.02	%		83,659	2.78	%
Total loans receivable		1,725,863	5.44	%		1,699,190	5.30	%		1,547,861	5.01	%
Other earning assets		1,200	2.70	%		1,048	3.03	%		1,983	2.45	%
Total Earning Assets		2,300,202	4.66	%		2,302,530	4.51	%		2,168,594	4.13	%
Cash		22,276				23,154				20,703
Unrealized loss on securities		(60,055)				(70,583)				(2,508)
Allowance for credit losses		(17,053)				(16,612)				(13,783)
Bank-owned life insurance		31,267				31,127				30,720
Bank premises and equipment		21,518				21,752				21,043
Intangible assets		55,331				55,433				55,765
Other assets		67,333				64,341				44,952
Total Assets	$	2,420,819			$	2,411,142			$	2,325,486
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	457,277	0.88	%	$	478,012	0.70	%	$	419,130	0.19	%
Money market		364,646	0.97	%		427,378	0.76	%		456,904	0.23	%
Savings		257,047	0.10	%		262,269	0.10	%		249,165	0.10	%
Time deposits		312,497	1.70	%		295,920	1.20	%		277,405	0.57	%
Total interest-bearing deposits		1,391,467	0.94	%		1,463,579	0.71	%		1,402,604	0.26	%
Borrowed funds:
Short-term		91,767	4.85	%		14,229	3.54	%		1,746	0.23	%
Long-term - FHLB advances		80,648	3.42	%		62,998	2.90	%		26,102	0.76	%
Senior notes, net		14,773	3.29	%		14,757	3.23	%		14,709	3.25	%
Subordinated debt, net		24,620	3.79	%		24,594	3.71	%		32,948	4.47	%
Total borrowed funds		211,808	4.07	%		116,578	3.19	%		75,505	2.85	%
Total Interest-bearing Liabilities		1,603,275	1.36	%		1,580,157	0.89	%		1,478,109	0.40	%
Demand deposits		539,659				563,567				529,077
Other liabilities		25,247				26,171				24,046
Total Liabilities		2,168,181				2,169,895				2,031,232
Stockholders' equity, excluding accumulated other comprehensive loss		299,599				296,717				295,996
Accumulated other comprehensive loss		(46,961)				(55,470)				(1,742)
Total Stockholders' Equity		252,638				241,247				294,254
Total Liabilities and Stockholders' Equity	$	2,420,819			$	2,411,142			$	2,325,486
Interest Rate Spread			3.30	%			3.62	%			3.73	%
Net Interest Income/Earning Assets			3.71	%			3.89	%			3.86	%
Total Deposits (Interest-bearing and Demand)	$	1,931,126			$	2,027,146			$	1,931,681

(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.

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COMPARISON OF NONINTEREST INCOME

(In Thousands)

	Three Months Ended
	March 31,		December 31,		March 31,
	2023		2022		2022
Trust revenue	$	1,777	$	1,749	$	1,786
Brokerage and insurance revenue		430		507		522
Service charges on deposit accounts		1,290		1,357		1,235
Interchange revenue from debit card transactions		1,007		1,098		963
Net gains from sales of loans		74		24		382
Loan servicing fees, net		122		203		210
Increase in cash surrender value of life insurance		138		140		135
Other noninterest income		771		1,032		588
Total noninterest income, excluding realized gains on securities, net	$	5,609	$	6,110	$	5,821

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)

	Three Months Ended
	March 31,		December 31,		March 31,
	2023		2022		2022
Salaries and employee benefits	$	11,427	$	10,135	$	10,607
Net occupancy and equipment expense		1,402		1,316		1,411
Data processing and telecommunications expenses		1,936		1,744		1,623
Automated teller machine and interchange expense		475		473		384
Pennsylvania shares tax		403		493		488
Professional fees		937		515		489
Other noninterest expense		2,507		1,911		1,884
Total noninterest expense	$	19,087	$	16,587	$	16,886

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