Citizens & Northern (CZNC) 8-K C&N Declares Dividend and Announces First Quarter 2024 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
	2024		2023		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	30,336	$	26,139	$	4,197	16.06	%
Interest Expense		11,295		5,358		5,937	110.81	%
Net Interest Income		19,041		20,781		(1,740)	(8.37)	%
Provision (Credit) for Credit Losses		954		(352)		1,306	(371.02)	%
Net Interest Income After Provision (Credit) for Credit Losses		18,087		21,133		(3,046)	(14.41)	%
Noninterest Income		6,675		5,609		1,066	19.01	%
Net Realized Gains on Available-for-sale Debt Securities		0		7		(7)	(100.00)	%
Noninterest Expense		18,304		19,087		(783)	(4.10)	%
Income Before Income Tax Provision		6,458		7,662		(1,204)	(15.71)	%
Income Tax Provision		1,152		1,409		(257)	(18.24)	%
Net Income	$	5,306	$	6,253	$	(947)	(15.14)	%
Net Income Attributable to Common Shares (1)	$	5,267	$	6,201	$	(934)	(15.06)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.35	$	0.40	$	(0.05)	(12.50)	%
Net Income - Diluted	$	0.35	$	0.40	$	(0.05)	(12.50)	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,230,580		15,409,680
Number of Shares Used in Computation - Diluted		15,230,580		15,410,617

(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,
	2024		2023		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	46,448	$	52,212	$	(5,764)	(11.04)	%
Available-for-sale Debt Securities		405,094		472,814		(67,720)	(14.32)	%
Loans, Net		1,852,426		1,726,793		125,633	7.28	%
Bank-Owned Life Insurance		49,857		31,352		18,505	59.02	%
Bank Premises and Equipment, Net		21,852		21,277		575	2.70	%
Deferred Tax Asset, Net		17,703		18,914		(1,211)	(6.40)	%
Intangible Assets		54,877		55,280		(403)	(0.73)	%
Other Assets		73,280		51,230		22,050	43.04	%
TOTAL ASSETS	$	2,521,537	$	2,429,872	$	91,665	3.77	%
LIABILITIES
Deposits	$	1,995,903	$	1,916,040	$	79,863	4.17	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		197,655		192,097		5,558	2.89	%
Senior Notes, Net		14,848		14,781		67	0.45	%
Subordinated Debt, Net		24,745		24,634		111	0.45	%
Other Liabilities		26,730		26,752		(22)	(0.08)	%
TOTAL LIABILITIES		2,259,881		2,174,304		85,577	3.94	%
STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive Loss		302,362		298,365		3,997	1.34	%
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities		(41,071)		(43,271)		2,200	(5.08)	%
Defined Benefit Plans		365		474		(109)	(23.00)	%
TOTAL STOCKHOLDERS' EQUITY		261,656		255,568		6,088	2.38	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,521,537	$	2,429,872	$	91,665	3.77	%

2

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	AS OF OR FOR THE
	THREE MONTHS ENDED						%
	March 31,						INCREASE
	2024			2023			(DECREASE)
EARNINGS PERFORMANCE - U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP")
Net Income	$	5,306		$	6,253		(15.14)	%
Return on Average Assets (Annualized)		0.84	%		1.03	%	(18.45)	%
Return on Average Equity (Annualized)		8.13	%		9.90	%	(17.88)	%
PRE-TAX, PRE-PROVISION NET REVENUE ("PPNR") - NON-GAAP (a)
PPNR	$	7,607		$	7,572		0.46	%
PPNR (Annualized) as a % of Average Assets		1.21	%		1.25	%	(3.20)	%
PPNR (Annualized) as a % of Average Equity		11.65	%		11.99	%	(2.84)	%
BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,521,537		$	2,429,872		3.77	%
Available-for-Sale Debt Securities		405,094			472,814		(14.32)	%
Loans, Net		1,852,426			1,726,793		7.28	%
Allowance for Credit Losses:
Allowance for Credit Losses on Loans		20,023			18,346		9.14	%
Allowance for Credit Losses on Off-Balance Sheet Exposures		684			1,178		(41.94)	%
Deposits		1,995,903			1,916,040		4.17	%
OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	322,319		$	321,326		0.31	%
Trust Assets Under Management		1,224,573			1,127,439		8.62	%
STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	0.35		$	0.40		(12.50)	%
Net Income - Diluted	$	0.35		$	0.40		(12.50)	%
Dividends	$	0.28		$	0.28		0.00	%
Common Book Value	$	17.01		$	16.50		3.09	%
Tangible Common Book Value (b)	$	13.45		$	12.93		4.02	%
Market Value (Last Trade)	$	18.78		$	21.38		(12.16)	%
Market Value / Common Book Value		110.41	%		129.58	%	(14.79)	%
Market Value / Tangible Common Book Value		139.63	%		165.35	%	(15.55)	%
Price Earnings Multiple		13.41			13.36		0.37	%
Dividend Yield		5.96	%		5.24	%	13.74	%
Common Shares Outstanding, End of Period		15,378,065			15,485,035		(0.69)	%

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
	2024			2023			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (b)		8.38	%		8.43	%	(0.59)	%
Nonperforming Assets / Total Assets		0.78	%		0.60	%	30.00	%
Allowance for Credit Losses / Total Loans		1.07	%		1.05	%	1.90	%
Total Risk Based Capital Ratio (c)		15.55	%		16.49	%	(5.70)	%
Tier 1 Risk Based Capital Ratio (c)		13.14	%		13.96	%	(5.87)	%
Common Equity Tier 1 Risk Based Capital Ratio (c)		13.14	%		13.96	%	(5.87)	%
Leverage Ratio (c)		9.89	%		10.07	%	(1.79)	%
AVERAGE BALANCES
Average Assets	$	2,518,776		$	2,420,819		4.05	%
Average Equity	$	261,146		$	252,638		3.37	%
EFFICIENCY RATIO (d)
Net Interest Income on a Fully Taxable-Equivalent
Basis (d)	$	19,236		$	21,050		(8.62)	%
Noninterest Income, Excluding Net Realized Gains on Available-for-sale Debt Securities		6,675			5,609		19.01	%
Total (1)	$	25,911		$	26,659		(2.81)	%
Noninterest Expense (2)	$	18,304		$	19,087		(4.10)	%
Efficiency Ratio = (2)/(1)		70.64	%		71.60	%	(1.34)	%

(a) PPNR includes net interest income plus noninterest income minus total noninterest expense but excludes provision (credit) for credit losses, realized gains or losses on securities, the income tax provision and nonrecurring items included in earnings. Management believes disclosure of PPNR provides useful information for evaluating C&N’s financial performance without the impact of unusual items or events that may obscure trends in C&N’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. A reconciliation of this non-GAAP measure to the comparable GAAP measure is provided in Exhibit 99.2 under the table “PPNR- NON- GAAP RECONCILIATION.”

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

Total Assets	$	2,521,537	$	2,429,872
Less: Intangible Assets, Primarily Goodwill		(54,877)		(55,280)
Tangible Assets	$	2,466,660	$	2,374,592
Total Stockholders' Equity	$	261,656	$	255,568
Less: Intangible Assets, Primarily Goodwill		(54,877)		(55,280)
Tangible Common Equity (3)	$	206,779	$	200,288
Common Shares Outstanding, End of Period (4)		15,378,065		15,485,035
Tangible Common Book Value per Share = (3)/(4)	$	13.45	$	12.93

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

(d)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 C&N'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,
	2024		2023		2023		2023		2023
Interest income	$	30,336	$	30,236	$	29,118	$	28,011	$	26,139
Interest expense		11,295		10,642		9,455		7,649		5,358
Net interest income		19,041		19,594		19,663		20,362		20,781
Provision (credit) for credit losses		954		951		(1,225)		812		(352)
Net interest income after provision (credit) for credit losses		18,087		18,643		20,888		19,550		21,133
Noninterest income		6,675		8,720		6,489		6,635		5,609
Net realized (losses) gains on securities		0		(3,042)		0		(1)		7
Noninterest expense		18,304		18,399		17,940		18,722		19,087
Income before income tax provision		6,458		5,922		9,437		7,462		7,662
Income tax provision		1,152		1,661		1,846		1,419		1,409
Net income	$	5,306	$	4,261	$	7,591	$	6,043	$	6,253
Net income attributable to common shares	$	5,267	$	4,231	$	7,534	$	5,996	$	6,201
Basic earnings per common share	$	0.35	$	0.28	$	0.50	$	0.39	$	0.40
Diluted earnings per common share	$	0.35	$	0.28	$	0.50	$	0.39	$	0.40

5

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)

	As of:
	March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
	2024		2023		2023		2023		2023
ASSETS
Cash & Due from Banks	$	46,448	$	56,878	$	52,658	$	51,762	$	52,212
Available-for-Sale Debt Securities		405,094		415,755		429,138		445,695		472,814
Loans, Net		1,852,426		1,828,931		1,812,585		1,795,454		1,726,793
Bank-Owned Life Insurance		49,857		63,674		31,557		31,504		31,352
Bank Premises and Equipment, Net		21,852		21,632		21,267		20,970		21,277
Deferred Tax Asset, Net		17,703		17,441		23,731		20,687		18,914
Intangible Assets		54,877		54,974		55,076		55,178		55,280
Other Assets		73,280		56,299		57,937		49,530		51,230
TOTAL ASSETS	$	2,521,537	$	2,515,584	$	2,483,949	$	2,470,780	$	2,429,872
LIABILITIES
Deposits (1)	$	1,995,903	$	2,014,806	$	2,024,997	$	2,010,118	$	1,916,040
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		197,655		172,211		148,529		146,694		192,097
Senior Notes, Net		14,848		14,831		14,814		14,798		14,781
Subordinated Debt, Net		24,745		24,717		24,689		24,661		24,634
Other Liabilities		26,730		26,638		30,715		26,392		26,752
TOTAL LIABILITIES		2,259,881		2,253,203		2,243,744		2,222,663		2,174,304
STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss		302,362		300,818		300,031		296,190		298,365
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities		(41,071)		(38,878)		(60,278)		(48,536)		(43,271)
Defined Benefit Plans		365		441		452		463		474
TOTAL STOCKHOLDERS' EQUITY		261,656		262,381		240,205		248,117		255,568
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,521,537	$	2,515,584	$	2,483,949	$	2,470,780	$	2,429,872
(1) Brokered Deposits (Included in Total Deposits)	$	69,391	$	64,369	$	62,512	$	70,653	$	15,117

6

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)

	March 31, 2024				December 31, 2023				March 31, 2023
	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	11,324	$	10,231	$	12,325	$	11,290	$	33,924	$	31,163
Obligations of U.S. Government agencies		10,637		9,376		11,119		9,946		25,479		23,348
Bank holding company debt securities		28,953		23,469		28,952		23,500		28,947		24,723
Obligations of states and political subdivisions:
Tax-exempt		113,181		102,826		113,464		104,199		128,285		117,812
Taxable		57,960		49,255		58,720		50,111		67,076		57,572
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		102,048		91,116		105,549		95,405		109,028		97,807
Residential collateralized mortgage obligations		48,477		44,501		50,212		46,462		42,296		38,117
Commercial mortgage-backed securities		76,249		66,121		76,412		66,682		84,449		74,195
Private label commercial mortgage-backed securities		8,252		8,199		8,215		8,160		8,105		8,077
Total Available-for-Sale Debt Securities	$	457,081	$	405,094	$	464,968	$	415,755	$	527,589	$	472,814

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)

	March 31,		December 31,		March 31,
	2024		2023		2023
Commercial real estate - non-owner occupied
Non-owner occupied	$	507,223	$	499,104	$	457,814
Multi-family (5 or more) residential		64,866		64,076		58,111
1-4 Family - commercial purpose		167,740		174,162		166,773
Total commercial real estate - non-owner occupied		739,829		737,342		682,698
Commercial real estate - owner occupied		250,145		237,246		221,766
All other commercial loans:
Commercial and industrial		80,136		78,832		83,420
Commercial lines of credit		121,791		117,236		119,109
Political subdivisions		84,652		79,031		85,555
Commercial construction and land		106,255		104,123		70,612
Other commercial loans		19,971		20,471		26,106
Total all other commercial loans		412,805		399,693		384,802
Residential mortgage loans:
1-4 Family - residential		387,542		389,262		372,241
1-4 Family residential construction		22,121		24,452		29,479
Total residential mortgage		409,663		413,714		401,720
Consumer loans:
Consumer lines of credit (including HELCs)		41,204		41,503		35,245
All other consumer		18,803		18,641		18,908
Total consumer		60,007		60,144		54,153
Total		1,872,449		1,848,139		1,745,139
Less: allowance for credit losses on loans		(20,023)		(19,208)		(18,346)
Loans, net	$	1,852,426	$	1,828,931	$	1,726,793

7

NON-OWNER OCCUPIED COMMERCIAL REAL ESTATE

(In Thousands)

Loan Type	March 31,		% of Non-owner		% of
	2024		Occupied CRE		Total Loans
Industrial	$	117,199	23.1	%	6.3	%
Office		93,998	18.5	%	5.0	%
Retail		93,585	18.5	%	5.0	%
Hotels		72,999	14.4	%	3.9	%
Mixed Use		59,230	11.7	%	3.2	%
Other		70,212	13.8	%	3.7	%
Total Non-owner Occupied CRE Loans	$	507,223
Total Gross Loans	$	1,872,449

PAST DUE LOANS AND NONPERFORMING ASSETS

(Dollars In Thousands)

	March 31,			December 31,			March 31,
	2024			2023			2023
Loans individually evaluated with a valuation allowance	$	10,062		$	7,786		$	5,802
Loans individually evaluated without a valuation allowance		4,743			3,478			3,507
Total individually evaluated loans	$	14,805		$	11,264		$	9,309
Total loans past due 30-89 days and still accruing	$	6,560		$	9,275		$	5,493
Nonperforming assets:
Total nonaccrual loans	$	19,069		$	15,177		$	12,876
Total loans past due 90 days or more and still accruing		227			3,190			1,216
Total nonperforming loans		19,296			18,367			14,092
Foreclosed assets held for sale (real estate)		456			478			459
Total nonperforming assets	$	19,752		$	18,845		$	14,551
Total nonperforming loans as a % of total loans		1.03	%		0.99	%		0.81	%
Total nonperforming assets as a % of assets		0.78	%		0.75	%		0.60	%
Allowance for credit losses as a % of total loans		1.07	%		1.04	%		1.05	%

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,
	2024		2023		2023		2023
Balance, beginning of period	$	19,208	$	18,085	$	16,615	$	16,615
Adoption of ASU 2016-13 (CECL)		0		0		2,104		2,104
Charge-offs		(180)		(57)		(67)		(356)
Recoveries		35		18		6		92
Net charge-offs		(145)		(39)		(61)		(264)
Provision (credit) for credit losses on loans		960		1,162		(312)		753
Balance, end of period	$	20,023	$	19,208	$	18,346	$	19,208

8

ANALYSIS OF THE PROVISION (CREDIT) FOR CREDIT LOSSES

(In Thousands)

	3 Months		3 Months		3 Months
	Ended		Ended		Ended
	March 31,		December 31,		March 31,
	2024		2023		2023
Provision (credit) for credit losses:
Loans receivable	$	960	$	1,162	$	(312)
Off-balance sheet exposures		(6)		(211)		(40)
Total provision (credit) for credit losses	$	954	$	951	$	(352)

PPNR NON- GAAP RECONCILIATION

(In Thousands)

	Three Months Ended
	March 31,		December 31,		March 31,
Calculation of PPNR:	2024		2023		2023
Net Income (GAAP)	$	5,306	$	4,261	$	6,253
Add: Provision for income taxes		1,152		1,661		1,409
Add: Provision (credit) for credit losses		954		951		(352)
Less: Enhancement fee included in noninterest income related to purchase of Bank-Owned Life Insurance		0		(2,100)		0
Add: Realized losses (gains) on available-for-sale securities debt securities		0		3,042		(7)
Add: Adjustments to reflect net interest income on a fully taxable-equivalent basis		195		199		269
PPNR (non-GAAP)	$	7,607	$	8,014	$	7,572

9

COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)

	Three Months Ended
	March 31,		December 31,		March 31,
	2024		2023		2023
INTEREST INCOME
Interest-bearing due from banks	$	383	$	447	$	278
Available-for-sale debt securities:
Taxable		2,136		2,115		2,211
Tax-exempt		623		654		767
Total available-for-sale debt securities		2,759		2,769		2,978
Loans receivable:
Taxable		26,703		26,532		22,431
Tax-exempt		670		663		713
Total loans receivable		27,373		27,195		23,144
Other earning assets		16		24		8
Total Interest Income		30,531		30,435		26,408
INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		2,806		2,809		987
Money market		2,180		2,032		873
Savings		55		57		63
Time deposits		3,850		3,742		1,307
Total interest-bearing deposits		8,891		8,640		3,230
Borrowed funds:
Short-term		597		322		1,097
Long-term - FHLB advances		1,456		1,329		681
Senior notes, net		120		120		120
Subordinated debt, net		231		231		230
Total borrowed funds		2,404		2,002		2,128
Total Interest Expense		11,295		10,642		5,358
Net Interest Income	$	19,236	$	19,793	$	21,050

Note: Interest income from tax-exempt securities and loans has been adjusted to a fully taxable-equivalent basis, using C&N’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,
	2024		2023		2023
Net Interest Income Under U.S. GAAP	$	19,041	$	19,594	$	20,781
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		69		74		127
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		126		125		142
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	19,236	$	19,793	$	21,050

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
	3/31/2024		Return/		12/31/2023		Return/		3/31/2023		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	32,725	4.71	%	$	37,555	4.72	%	$	31,637	3.56	%
Available-for-sale debt securities, at amortized cost:
Taxable		347,885	2.47	%		372,797	2.25	%		410,110	2.19	%
Tax-exempt		113,363	2.21	%		121,143	2.14	%		131,392	2.37	%
Total available-for-sale debt securities		461,248	2.41	%		493,940	2.22	%		541,502	2.23	%
Loans receivable:
Taxable		1,774,064	6.05	%		1,752,047	6.01	%		1,634,012	5.57	%
Tax-exempt		85,182	3.16	%		84,349	3.12	%		91,851	3.15	%
Total loans receivable		1,859,246	5.92	%		1,836,396	5.88	%		1,725,863	5.44	%
Other earning assets		1,384	4.65	%		1,534	6.21	%		1,200	2.70	%
Total Earning Assets		2,354,603	5.22	%		2,369,425	5.10	%		2,300,202	4.66	%
Cash		20,448				21,019				22,276
Unrealized loss on securities		(50,849)				(72,605)				(60,055)
Allowance for credit losses		(19,484)				(18,575)				(17,053)
Bank-owned life insurance		54,466				32,980				31,267
Bank premises and equipment		21,788				21,532				21,518
Intangible assets		54,925				55,025				55,331
Other assets		82,879				78,558				67,333
Total Assets	$	2,518,776			$	2,487,359			$	2,420,819
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	514,905	2.19	%	$	521,432	2.14	%	$	457,277	0.88	%
Money market		362,864	2.42	%		354,854	2.27	%		364,646	0.97	%
Savings		213,278	0.10	%		218,810	0.10	%		257,047	0.10	%
Time deposits		429,085	3.61	%		429,898	3.45	%		312,497	1.70	%
Total interest-bearing deposits		1,520,132	2.35	%		1,524,994	2.25	%		1,391,467	0.94	%
Borrowed funds:
Short-term		44,642	5.38	%		24,196	5.28	%		91,767	4.85	%
Long-term - FHLB advances		142,753	4.10	%		132,089	3.99	%		80,648	3.42	%
Senior notes, net		14,840	3.25	%		14,822	3.21	%		14,773	3.29	%
Subordinated debt, net		24,731	3.76	%		24,704	3.71	%		24,620	3.79	%
Total borrowed funds		226,966	4.26	%		195,811	4.06	%		211,808	4.07	%
Total Interest-bearing Liabilities		1,747,098	2.60	%		1,720,805	2.45	%		1,603,275	1.36	%
Demand deposits		481,146				491,944				539,659
Other liabilities		29,386				32,122				25,247
Total Liabilities		2,257,630				2,244,871				2,168,181
Stockholders' equity, excluding accumulated other comprehensive loss		301,032				299,401				299,599
Accumulated other comprehensive loss		(39,886)				(56,913)				(46,961)
Total Stockholders' Equity		261,146				242,488				252,638
Total Liabilities and Stockholders' Equity	$	2,518,776			$	2,487,359			$	2,420,819
Interest Rate Spread			2.62	%			2.65	%			3.30	%
Net Interest Income/Earning Assets			3.29	%			3.31	%			3.71	%
Total Deposits (Interest-bearing and Demand)	$	2,001,278			$	2,016,938			$	1,931,126

(1)Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using C&N’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,
	2024		2023		2023
Trust revenue	$	1,897	$	1,913	$	1,777
Brokerage and insurance revenue		539		486		430
Service charges on deposit accounts		1,318		1,446		1,290
Interchange revenue from debit card transactions		1,013		1,045		1,007
Net gains from sales of loans		191		273		74
Loan servicing fees, net		230		136		122
Increase in cash surrender value of life insurance		470		2,253		138
Other noninterest income		1,017		1,168		771
Total noninterest income, excluding realized gains (losses) on securities, net	$	6,675	$	8,720	$	5,609

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)

	Three Months Ended
	March 31,		December 31,		March 31,
	2024		2023		2023
Salaries and employee benefits	$	11,562	$	11,113	$	11,427
Net occupancy and equipment expense		1,450		1,364		1,402
Data processing and telecommunications expenses		1,992		1,923		1,936
Automated teller machine and interchange expense		487		308		475
Pennsylvania shares tax		433		392		403
Professional fees		518		509		937
Other noninterest expense		1,862		2,790		2,507
Total noninterest expense	$	18,304	$	18,399	$	19,087

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LIQUIDITY INFORMATION

(In Thousands)

Available Credit Facilities	Outstanding						Available						Total Credit
	March 31,		Dec. 31,		March 31,		March 31,		Dec. 31,		March 31,		March 31,		Dec. 31,		March 31,
	2024		2023		2023		2024		2023		2023		2024		2023		2023
Federal Home Loan Bank of Pittsburgh	$	215,018	$	189,021	$	201,357	$	712,932	$	737,824	$	655,577	$	927,950	$	926,845	$	856,934
Federal Reserve Bank Discount Window		0		0		0		19,063		19,982		22,340		19,063		19,982		22,340
Other correspondent banks		0		0		0		75,000		75,000		95,000		75,000		75,000		95,000
Total credit facilities	$	215,018	$	189,021	$	201,357	$	806,995	$	832,806	$	772,917	$	1,022,013	$	1,021,827	$	974,274

Uninsured Deposits Information	March 31,			December 31,			March 31,
	2024			2023			2023
Total Deposits - C&N Bank	$	2,012,167		$	2,030,909		$	1,934,686
Estimated Total Uninsured Deposits	$	568,085		$	592,206		$	613,875
Portion of Uninsured Deposits that are
Collateralized		140,063			151,031			189,239
Uninsured and Uncollateralized Deposits	$	428,022		$	441,175		$	424,636
Uninsured and Uncollateralized Deposits as
a % of Total Deposits		21.3	%		21.7	%		21.9	%
Available Funding from Credit Facilities	$	806,995		$	832,806		$	772,917
Fair Value of Available-for-sale Debt
Securities in Excess of Pledging Obligations		259,489			256,058			269,763
Highly Liquid Available Funding	$	1,066,484		$	1,088,864		$	1,042,680
Highly Liquid Available Funding as a % of
Uninsured Deposits		187.7	%		183.9	%		169.9	%
Highly Liquid Available Funding as a % of
Uninsured and Uncollateralized Deposits		249.2	%		246.8	%		245.5	%

13