EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)



	3rd		3rd
	QUARTER		QUARTER
	2024		2023		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	33,087	$	29,118	$	3,969	13.63	%
Interest Expense		12,931		9,455		3,476	36.76	%
Net Interest Income		20,156		19,663		493	2.51	%
Provision (Credit) for Credit Losses		1,207		(1,225)		2,432	(198.53)	%
Net Interest Income After Provision (Credit) for Credit Losses		18,949		20,888		(1,939)	(9.28)	%
Noninterest Income		7,133		6,489		644	9.92	%
Net Realized Losses on Available-for-sale Debt Securities		0		0		0	0	%
Noninterest Expense		18,269		17,940		329	1.83	%
Income Before Income Tax Provision		7,813		9,437		(1,624)	(17.21)	%
Income Tax Provision		1,448		1,846		(398)	(21.56)	%
Net Income	$	6,365	$	7,591	$	(1,226)	(16.15)	%
Net Income Attributable to Common Shares (1)	$	6,311	$	7,534	$	(1,223)	(16.23)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.41	$	0.50	$	(0.09)	(18.00)	%
Net Income - Diluted	$	0.41	$	0.50	$	(0.09)	(18.00)	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,267,120		15,154,797
Number of Shares Used in Computation - Diluted		15,267,120		15,154,797


	NINE MONTHS ENDED
	SEPTEMBER 30,
	2024		2023		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	94,749	$	83,268	$	11,481	13.79	%
Interest Expense		36,107		22,462		13,645	60.75	%
Net Interest Income		58,642		60,806		(2,164)	(3.56)	%
Provision (Credit) for Credit Losses		2,726		(765)		3,491	(456.34)	%
Net Interest Income After Provision (Credit) for Credit Losses		55,916		61,571		(5,655)	(9.18)	%
Noninterest Income		21,662		18,733		2,929	15.64	%
Net Realized Gains on Available-for-sale Debt Securities		0		6		(6)	(100.00)	%
Noninterest Expense		55,828		55,749		79	0.14	%
Income Before Income Tax Provision		21,750		24,561		(2,811)	(11.44)	%
Income Tax Provision		3,966		4,674		(708)	(15.15)	%
Net Income	$	17,784	$	19,887	$	(2,103)	(10.57)	%
Net Income Attributable to Common Shares (1)	$	17,644	$	19,731	$	(2,087)	(10.58)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	1.16	$	1.29	$	(0.13)	(10.08)	%
Net Income - Diluted	$	1.16	$	1.29	$	(0.13)	(10.08)	%
Dividends Per Share	$	0.84	$	0.84	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,254,124		15,264,391
Number of Shares Used in Computation - Diluted		15,254,124		15,264,395

(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.

CONDENSED, CONSOLIDATED BALANCE SHEET DATA

(Dollars In Thousands)

(Unaudited)


	September 30,		September 30,
	2024		2023		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	184,213	$	52,658	$	131,555	249.83	%
Available-for-sale Debt Securities		408,422		429,138		(20,716)	(4.83)	%
Loans, Net		1,872,322		1,812,585		59,737	3.30	%
Bank-Owned Life Insurance		50,757		31,557		19,200	60.84	%
Bank Premises and Equipment, Net		21,537		21,267		270	1.27	%
Deferred Tax Asset, Net		17,047		23,731		(6,684)	(28.17)	%
Intangible Assets		54,682		55,076		(394)	(0.72)	%
Other Assets		61,842		57,937		3,905	6.74	%
TOTAL ASSETS	$	2,670,822	$	2,483,949	$	186,873	7.52	%

LIABILITIES
Deposits	$	2,135,879	$	2,024,997	$	110,882	5.48	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		186,043		148,529		37,514	25.26	%
Senior Notes, Net		14,882		14,814		68	0.46	%
Subordinated Debt, Net		24,802		24,689		113	0.46	%
Other Liabilities		31,911		30,715		1,196	3.89	%
TOTAL LIABILITIES		2,393,517		2,243,744		149,773	6.68	%

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive Loss		307,369		300,031		7,338	2.45	%
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities		(30,396)		(60,278)		29,882	(49.57)	%
Defined Benefit Plans		332		452		(120)	(26.55)	%
TOTAL STOCKHOLDERS' EQUITY		277,305		240,205		37,100	15.45	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,670,822	$	2,483,949	$	186,873	7.52	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	FOR THE
	THREE MONTHS ENDED						%
	September 30,						INCREASE
	2024			2023			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	6,365		$	7,591		(16.15)	%
Return on Average Assets (Annualized)		0.97	%		1.23	%	(21.14)	%
Return on Average Equity (Annualized)		9.49	%		12.28	%	(22.72)	%

PRE-TAX, PRE-PROVISION NET REVENUE ("PPNR") - NON-GAAP (a)
PPNR	$	9,225		$	8,424		9.51	%
PPNR (Annualized) as a % of Average Assets		1.41	%		1.36	%	3.68	%
PPNR (Annualized) as a % of Average Equity		13.75	%		13.63	%	0.88	%

	AS OF OR FOR THE
	NINE MONTHS ENDED						%
	September 30,						INCREASE
	2024			2023			(DECREASE)
EARNINGS PERFORMANCE - U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP")
Net Income	$	17,784		$	19,887		(10.57)	%
Return on Average Assets (Annualized)		0.93	%		1.08	%	(13.89)	%
Return on Average Equity (Annualized)		9.03	%		10.58	%	(14.65)	%

PPNR - NON-GAAP (a)
PPNR	$	25,078		$	24,510		2.32	%
PPNR (Annualized) as a % of Average Assets		1.31	%		1.33	%	(1.50)	%
PPNR (Annualized) as a % of Average Equity		12.73	%		13.04	%	(2.38)	%

BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,670,822		$	2,483,949		7.52	%
Available-for-Sale Debt Securities		408,422			429,138		(4.83)	%
Loans, Net		1,872,322			1,812,585		3.30	%
Allowance for Credit Losses:
Allowance for Credit Losses on Loans		20,442			18,085		13.03	%
Allowance for Credit Losses on Off-Balance Sheet Exposures		592			900		(34.22)	%
Deposits		2,135,879			2,024,997		5.48	%

OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	325,004		$	318,526		2.03	%
Trust Assets Under Management		1,359,023			1,128,600		20.42	%

STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.16		$	1.29		(10.08)	%
Net Income - Diluted	$	1.16		$	1.29		(10.08)	%
Dividends	$	0.84		$	0.84		0.00	%
Common Book Value	$	17.99		$	15.72		14.44	%
Tangible Common Book Value NON-GAAP (b)	$	14.44		$	12.12		19.14	%
Market Value (Last Trade)	$	19.69		$	17.55		12.19	%
Market Value / Common Book Value		109.45	%		111.64	%	(1.96)	%
Market Value / Tangible Common Book Value - NON-GAAP (b)		136.36	%		144.80	%	(5.83)	%
Price Earnings Multiple		12.70			10.20		24.51	%
Dividend Yield (Annualized)		5.69	%		6.38	%	(10.82)	%
Common Shares Outstanding, End of Period		15,414,132			15,275,686		0.91	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	AS OF OR FOR THE
	NINE MONTHS ENDED						%
	September 30,						INCREASE
	2024			2023			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (b)		8.51	%		7.62	%	11.68	%
Nonperforming Assets / Total Assets		0.92	%		0.70	%	31.43	%
Allowance for Credit Losses / Total Loans		1.08	%		0.99	%	9.09	%
Total Risk Based Capital Ratio (c)		15.70	%		15.81	%	(0.70)	%
Tier 1 Risk Based Capital Ratio (c)		13.29	%		13.42	%	(0.97)	%
Common Equity Tier 1 Risk Based Capital Ratio (c)		13.29	%		13.42	%	(0.97)	%
Leverage Ratio (c)		9.71	%		9.91	%	(2.02)	%

AVERAGE BALANCES
Average Assets	$	2,561,690		$	2,454,599		4.36	%
Average Equity	$	262,672		$	250,518		4.85	%

EFFICIENCY RATIO NON-GAAP (d)
Net Interest Income on a Fully Taxable-Equivalent Basis (d)	$	59,244		$	61,526		(3.71)	%
Noninterest Income, Excluding Net Realized Gains on Available-for-sale Debt Securities		21,662			18,733		15.64	%
Total (1)	$	80,906		$	80,259		0.81	%
Noninterest Expense (2)	$	55,828		$	55,749		0.14	%
Efficiency Ratio = (2)/(1)		69.00	%		69.46	%	(0.66)	%

(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, tangible common equity as a percentage of tangible assets and market value as a percentage of tangible common book value 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	$	2,670,822	$	2,483,949
Less: Intangible Assets, Primarily Goodwill		(54,682)		(55,076)
Tangible Assets	$	2,616,140	$	2,428,873
Total Stockholders' Equity	$	277,305	$	240,205
Less: Intangible Assets, Primarily Goodwill		(54,682)		(55,076)
Tangible Common Equity (3)	$	222,623	$	185,129

Common Shares Outstanding, End of Period (4)		15,414,132		15,275,686
Tangible Common Book Value per Share = (3)/(4)	$	14.44	$	12.12

(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.”

QUARTERLY CONDENSED, CONSOLIDATED

INCOME STATEMENT INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


		For the Three Months Ended:
	September 30,		June 30,		March 31,		December 31,		September 30,
	2024		2024		2024		2023		2023
Interest income	$	33,087	$	31,326	$	30,336	$	30,236	$	29,118
Interest expense		12,931		11,881		11,295		10,642		9,455
Net interest income		20,156		19,445		19,041		19,594		19,663
Provision (credit) for credit losses		1,207		565		954		951		(1,225)
Net interest income after provision (credit) for credit losses		18,949		18,880		18,087		18,643		20,888
Noninterest income		7,133		7,854		6,675		8,720		6,489
Net realized losses on securities		0		0		0		(3,042)		0
Noninterest expense		18,269		19,255		18,304		18,399		17,940
Income before income tax provision		7,813		7,479		6,458		5,922		9,437
Income tax provision		1,448		1,366		1,152		1,661		1,846
Net income	$	6,365	$	6,113	$	5,306	$	4,261	$	7,591
Net income attributable to common shares	$	6,311	$	6,066	$	5,267	$	4,231	$	7,534
Basic earnings per common share	$	0.41	$	0.40	$	0.35	$	0.28	$	0.50
Diluted earnings per common share	$	0.41	$	0.40	$	0.35	$	0.28	$	0.50

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)


	As of:
	Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,
	2024		2024		2023		2023		2023
ASSETS
Cash & Due from Banks	$	184,213	$	100,412	$	46,448	$	56,878	$	52,658
Available-for-Sale Debt Securities		408,422		401,145		405,094		415,755		429,138
Loans, Net		1,872,322		1,872,825		1,852,426		1,828,931		1,812,585
Bank-Owned Life Insurance		50,757		50,301		49,857		63,674		31,557
Bank Premises and Equipment, Net		21,537		21,966		21,852		21,632		21,267
Deferred Tax Asset, Net		17,047		18,375		17,703		17,441		23,731
Intangible Assets		54,682		54,779		54,877		54,974		55,076
Other Assets		61,842		73,319		73,280		56,299		57,937
TOTAL ASSETS	$	2,670,822	$	2,593,122	$	2,521,537	$	2,515,584	$	2,483,949

LIABILITIES
Deposits (1)	$	2,135,879	$	2,059,309	$	1,995,903	$	2,014,806	$	2,024,997
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		186,043		202,523		197,655		172,211		148,529
Senior Notes, Net		14,882		14,865		14,848		14,831		14,814
Subordinated Debt, Net		24,802		24,773		24,745		24,717		24,689
Other Liabilities		31,911		28,431		26,730		26,638		30,715
TOTAL LIABILITIES		2,393,517		2,329,901		2,259,881		2,253,203		2,243,744

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss		307,369		304,582		302,362		300,818		300,031
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities		(30,396)		(41,710)		(41,071)		(38,878)		(60,278)
Defined Benefit Plans		332		349		365		441		452
TOTAL STOCKHOLDERS' EQUITY		277,305		263,221		261,656		262,381		240,205
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,670,822	$	2,593,122	$	2,521,537	$	2,515,584	$	2,483,949

(1) Brokered Deposits (Included in Total Deposits)	$	45,051	$	59,501	$	69,391	$	64,369	$	62,512

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)


	September 30, 2024				June 30, 2024				December 31, 2023				September 30, 2023
	Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	8,072	$	7,321	$	10,323	$	9,257	$	12,325	$	11,290	$	33,938	$	30,557
Obligations of U.S. Government agencies		10,271		9,376		10,582		9,350		11,119		9,946		21,372		18,796
Bank holding company debt securities		28,956		23,949		28,955		23,657		28,952		23,500		28,950		22,311
Obligations of states and political subdivisions:
Tax-exempt		113,093		104,936		113,659		102,020		113,464		104,199		123,598		104,453
Taxable		55,182		48,434		56,294		47,481		58,720		50,111		65,408		53,457
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		101,545		94,053		104,708		93,874		105,549		95,405		109,102		94,469
Residential collateralized mortgage obligations		48,251		45,601		46,623		42,565		50,212		46,462		38,267		33,397
Commercial mortgage-backed securities		73,695		66,390		74,510		64,718		76,412		66,682		76,627		63,672
Private label commercial mortgage-backed securities		8,327		8,362		8,290		8,223		8,215		8,160		8,178		8,026
Total Available-for-Sale Debt Securities	$	447,392	$	408,422	$	453,944	$	401,145	$	464,968	$	415,755	$	505,440	$	429,138

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)


	September 30,		June 30,		December 31,		September 30,
	2024		2024		2023		2023
Commercial real estate - non-owner occupied:
Non-owner occupied	$	470,383	$	489,514	$	499,104	$	503,434
Multi-family (5 or more) residential		87,487		67,154		64,076		61,061
1-4 Family - commercial purpose		163,233		167,296		174,162		172,792
Total commercial real estate - non-owner occupied		721,103		723,964		737,342		737,287
Commercial real estate - owner occupied		266,477		267,169		237,246		231,112
All other commercial loans:
Commercial and industrial		93,205		77,339		78,832		80,960
Commercial lines of credit		128,461		130,924		117,236		122,189
Political subdivisions		85,479		89,460		79,031		80,415
Commercial construction and land		105,255		114,162		104,123		91,014
Other commercial loans		19,585		19,221		20,471		21,125
Total all other commercial loans		431,985		431,106		399,693		395,703
Residential mortgage loans:
1-4 Family - residential		383,482		383,494		389,262		385,777
1-4 Family residential construction		23,947		26,330		24,452		24,236
Total residential mortgage		407,429		409,824		413,714		410,013
Consumer loans:
Consumer lines of credit (including HELCs)		43,624		42,325		41,503		37,736
All other consumer		22,146		18,819		18,641		18,819
Total consumer		65,770		61,144		60,144		56,555
Total		1,892,764		1,893,207		1,848,139		1,830,670
Less: allowance for credit losses on loans		(20,442)		(20,382)		(19,208)		(18,085)
Loans, net	$	1,872,322	$	1,872,825	$	1,828,931	$	1,812,585

NON-OWNER OCCUPIED COMMERCIAL REAL ESTATE

(In Thousands)


Loan Type	September 30,		% of Non-owner		% of
	2024		Occupied CRE		Total Loans
Office	$	96,241	20.5	%	5.1	%
Retail		94,773	20.1	%	5.0	%
Industrial		82,946	17.6	%	4.4	%
Hotels		72,491	15.4	%	3.8	%
Mixed Use		60,800	12.9	%	3.2	%
Other		63,132	13.4	%	3.3	%
Total Non-owner Occupied CRE Loans	$	470,383
Total Gross Loans	$	1,892,764

PAST DUE LOANS AND NONPERFORMING ASSETS

(Dollars In Thousands)


	September 30,			June 30,			December 31,			September 30,
	2024			2024			2023			2023
Loans individually evaluated with a valuation allowance	$	1,622		$	6,613		$	7,786		$	7,861
Loans individually evaluated without a valuation allowance		18,069			8,567			3,478			4,146
Total individually evaluated loans	$	19,691		$	15,180		$	11,264		$	12,007

Total loans past due 30-89 days and still accruing	$	15,906		$	3,088		$	9,275		$	3,675

Nonperforming assets:
Total nonaccrual loans	$	24,401		$	19,579		$	15,177		$	15,501
Total loans past due 90 days or more and still accruing		56			20			3,190			1,292
Total nonperforming loans		24,457			19,599			18,367			16,793
Foreclosed assets held for sale (real estate)		181			181			478			633
Total nonperforming assets	$	24,638		$	19,780		$	18,845		$	17,426

Total nonperforming loans as a % of total loans		1.29	%		1.04	%		0.99	%		0.92	%
Total nonperforming assets as a % of assets		0.92	%		0.76	%		0.75	%		0.70	%
Allowance for credit losses as a % of total loans		1.08	%		1.08	%		1.04	%		0.99	%

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LOANS

(In Thousands)


	3 Months		3 Months		3 Months		9 Months		9 Months
	Ended		Ended		Ended		Ended		Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Balance, beginning of period	$	20,382	$	20,023	$	19,056	$	19,208	$	16,615
Adoption of ASU 2016-13 (CECL)		0		0		0		0		2,104
Charge-offs		(1,268)		(236)		(98)		(1,684)		(299)
Recoveries		31		29		60		95		74
Net charge-offs		(1,237)		(207)		(38)		(1,589)		(225)
Provision (credit) for credit losses on loans		1,297		566		(933)		2,823		(409)
Balance, end of period	$	20,442	$	20,382	$	18,085	$	20,442	$	18,085

ANALYSIS OF THE PROVISION (CREDIT) FOR CREDIT LOSSES

(In Thousands)


	3 Months		3 Months		3 Months		9 Months		9 Months
	Ended		Ended		Ended		Ended		Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Provision (credit) for credit losses:
Loans receivable	$	1,297	$	566	$	(933)	$	2,823	$	(409)
Off-balance sheet exposures		(90)		(1)		(292)		(97)		(356)
Total provision (credit) for credit losses	$	1,207	$	565	$	(1,225)	$	2,726	$	(765)

PPNR NON- GAAP RECONCILIATION

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
Calculation of PPNR:	2024		2024		2023		2024		2023
Net Income (GAAP)	$	6,365	$	6,113	$	7,591	$	17,784	$	19,887
Add: Provision for income taxes		1,448		1,366		1,846		3,966		4,674
Add: Provision (credit) for credit losses		1,207		565		(1,225)		2,726		(765)
Add: Realized losses (gains) on available-for-sale securities debt securities		0		0		0		0		(6)
Add: Adjustments to reflect net interest income on a fully taxable-equivalent basis		205		202		212		602		720
PPNR (non-GAAP)	$	9,225	$	8,246	$	8,424	$	25,078	$	24,510

COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
INTEREST INCOME
Interest-bearing due from banks	$	1,622	$	516	$	345	$	2,521	$	932
Available-for-sale debt securities:
Taxable		2,136		2,137		2,077		6,409		6,440
Tax-exempt		638		626		681		1,887		2,161
Total available-for-sale debt securities		2,774		2,763		2,758		8,296		8,601
Loans receivable:
Taxable		28,099		27,490		25,526		82,292		72,314
Tax-exempt		749		730		683		2,149		2,101
Total loans receivable		28,848		28,220		26,209		84,441		74,415
Other earning assets		48		29		18		93		40
Total Interest Income		33,292		31,528		29,330		95,351		83,988

INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		3,240		2,836		2,360		8,882		4,859
Money market		2,159		1,917		1,669		6,256		3,654
Savings		50		52		60		157		186
Time deposits		4,963		4,509		3,175		13,322		6,894
Total interest-bearing deposits		10,412		9,314		7,264		28,617		15,593
Borrowed funds:
Short-term		184		360		677		1,141		2,918
Long-term - FHLB advances		1,983		1,855		1,164		5,294		2,901
Senior notes, net		120		120		120		360		359
Subordinated debt, net		232		232		230		695		691
Total borrowed funds		2,519		2,567		2,191		7,490		6,869
Total Interest Expense		12,931		11,881		9,455		36,107		22,462

Net Interest Income	$	20,361	$	19,647	$	19,875	$	59,244	$	61,526

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						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Net Interest Income Under U.S. GAAP	$	20,156	$	19,445	$	19,663	$	58,642	$	60,806
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		66		67		84		202		314
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		139		135		128		400		406
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	20,361	$	19,647	$	19,875	$	59,244	$	61,526

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
	9/30/2024		Return/		6/30/2024		Return/		9/30/2023		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	119,885	5.38	%	$	43,139	4.81	%	$	31,729	4.31	%
Available-for-sale debt securities, at amortized cost:
Taxable		336,246	2.53	%		343,971	2.50	%		379,709	2.17	%
Tax-exempt		113,514	2.24	%		112,921	2.23	%		124,435	2.17	%
Total available-for-sale debt securities		449,760	2.45	%		456,892	2.43	%		504,144	2.17	%
Loans receivable:
Taxable		1,797,224	6.22	%		1,792,556	6.17	%		1,729,972	5.85	%
Tax-exempt		91,246	3.27	%		90,830	3.23	%		87,026	3.10	%
Total loans receivable		1,888,470	6.08	%		1,883,386	6.03	%		1,816,998	5.72	%
Other earning assets		3,076	6.21	%		2,176	5.36	%		1,468	4.86	%
Total Earning Assets		2,461,191	5.38	%		2,385,593	5.32	%		2,354,339	4.94	%
Cash		24,987				22,396				22,068
Unrealized loss on securities		(47,806)				(56,765)				(63,110)
Allowance for credit losses		(20,643)				(20,290)				(19,540)
Bank-owned life insurance		50,470				50,018				31,559
Bank premises and equipment		21,793				21,994				21,132
Intangible assets		54,730				54,827				55,125
Other assets		73,320				89,859				74,483
Total Assets	$	2,618,042			$	2,547,632			$	2,476,056

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	543,288	2.37	%	$	517,145	2.21	%	$	512,074	1.83	%
Money market		356,487	2.41	%		340,038	2.27	%		340,618	1.94	%
Savings		198,312	0.10	%		207,530	0.10	%		232,240	0.10	%
Time deposits		485,708	4.07	%		457,885	3.96	%		406,436	3.10	%
Total interest-bearing deposits		1,583,795	2.62	%		1,522,598	2.46	%		1,491,368	1.93	%
Borrowed funds:
Short-term		15,038	4.87	%		27,732	5.22	%		49,157	5.46	%
Long-term - FHLB advances		181,075	4.36	%		175,373	4.25	%		119,395	3.87	%
Senior notes, net		14,875	3.21	%		14,856	3.25	%		14,808	3.22	%
Subordinated debt, net		24,787	3.72	%		24,759	3.77	%		24,676	3.70	%
Total borrowed funds		235,775	4.25	%		242,720	4.25	%		208,036	4.18	%
Total Interest-bearing Liabilities		1,819,570	2.83	%		1,765,318	2.71	%		1,699,404	2.21	%
Demand deposits		500,859				493,922				498,724
Other liabilities		29,226				29,972				30,749
Total Liabilities		2,349,655				2,289,212				2,228,877
Stockholders' equity, excluding accumulated other comprehensive loss		305,808				302,758				296,577
Accumulated other comprehensive loss		(37,421)				(44,338)				(49,398)
Total Stockholders' Equity		268,387				258,420				247,179
Total Liabilities and Stockholders' Equity	$	2,618,042			$	2,547,632			$	2,476,056
Interest Rate Spread			2.55	%			2.61	%			2.73	%
Net Interest Income/Earning Assets			3.29	%			3.31	%			3.35	%

Total Deposits (Interest-bearing and Demand)	$	2,084,654			$	2,016,520			$	1,990,092

(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.

ANALYSIS OF AVERAGE DAILY BALANCES AND RATES

(Dollars in Thousands)


	9 Months				9 Months
	Ended		Rate of		Ended		Rate of
	9/30/2024		Return/		9/30/2023		Return/
	Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds%
EARNING ASSETS
Interest-bearing due from banks	$	65,449	5.15	%	$	31,076	4.01	%
Available-for-sale debt securities, at amortized cost:
Taxable		342,677	2.50	%		395,070	2.18	%
Tax-exempt		113,267	2.23	%		127,530	2.27	%
Total available-for-sale debt securities		455,944	2.43	%		522,600	2.20	%
Loans receivable:
Taxable		1,787,982	6.15	%		1,687,593	5.73	%
Tax-exempt		89,094	3.22	%		89,645	3.12	%
Total loans receivable		1,877,076	6.01	%		1,777,238	5.60	%
Other earning assets		2,215	5.61	%		1,332	4.02	%
Total Earning Assets		2,400,684	5.31	%		2,332,246	4.81	%
Cash		22,619				22,475
Unrealized loss on securities		(51,792)				(59,921)
Allowance for credit losses		(20,141)				(18,472)
Bank-owned life insurance		51,647				31,413
Bank premises and equipment		21,858				21,262
Intangible assets		54,827				55,227
Other assets		81,988				70,369
Total Assets	$	2,561,690			$	2,454,599

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	525,179	2.26	%	$	477,751	1.36	%
Money market		353,142	2.37	%		344,527	1.42	%
Savings		206,344	0.10	%		245,483	0.10	%
Time deposits		457,662	3.89	%		365,174	2.52	%
Total interest-bearing deposits		1,542,327	2.48	%		1,432,935	1.45	%
Borrowed funds:
Short-term		29,086	5.24	%		75,978	5.13	%
Long-term - FHLB advances		166,454	4.25	%		103,817	3.74	%
Senior notes, net		14,857	3.24	%		14,790	3.25	%
Subordinated debt, net		24,759	3.75	%		24,648	3.75	%
Total borrowed funds		235,156	4.25	%		219,233	4.19	%
Total Interest-bearing Liabilities		1,777,483	2.71	%		1,652,168	1.82	%
Demand deposits		492,008				523,822
Other liabilities		29,527				28,091
Total Liabilities		2,299,018				2,204,081
Stockholders' equity, excluding accumulated other comprehensive loss		303,209				297,386
Accumulated other comprehensive loss		(40,537)				(46,868)
Total Stockholders' Equity		262,672				250,518
Total Liabilities and Stockholders' Equity	$	2,561,690			$	2,454,599
Interest Rate Spread			2.60	%			2.99	%
Net Interest Income/Earning Assets			3.30	%			3.53	%

Total Deposits (Interest-bearing and Demand)	$	2,034,335			$	1,956,757

(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.

COMPARISON OF NONINTEREST INCOME

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Trust revenue	$	1,946	$	2,014	$	1,919	$	5,857	$	5,500
Brokerage and insurance revenue		523		527		394		1,589		1,189
Service charges on deposit accounts		1,546		1,472		1,443		4,336		4,121
Interchange revenue from debit card transactions		1,103		1,089		1,098		3,205		3,115
Net gains from sales of loans		360		235		237		786		450
Loan servicing fees, net		74		130		154		434		466
Increase in cash surrender value of life insurance		458		444		160		1,372		450
Other noninterest income		1,123		1,943		1,084		4,083		3,442
Total noninterest income, excluding realized gains (losses) on securities, net	$	7,133	$	7,854	$	6,489	$	21,662	$	18,733

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Salaries and employee benefits	$	10,875	$	11,023	$	10,878	$	33,460	$	33,082
Net occupancy and equipment expense		1,377		1,333		1,268		4,160		3,993
Data processing and telecommunications expenses		1,882		2,003		1,823		5,877		5,659
Automated teller machine and interchange expense		510		473		504		1,470		1,374
Pennsylvania shares tax		433		434		403		1,300		1,210
Professional fees		555		552		487		1,625		1,988
Other noninterest expense		2,637		3,437		2,577		7,936		8,443
Total noninterest expense	$	18,269	$	19,255	$	17,940	$	55,828	$	55,749

LIQUIDITY INFORMATION

(In Thousands)


Available Credit Facilities	Outstanding						Available						Total Credit
	September 30,		June 30,		Dec. 31,		September 30,		June 30,		Dec. 31,		September 30,		June 30,		Dec. 31,
	2024		2024		2023		2024		2024		2023		2024		2024		2023
Federal Home Loan Bank of Pittsburgh	$	207,858	$	223,853	$	189,021	$	737,284	$	719,722	$	737,824	$	945,142	$	943,575	$	926,845
Federal Reserve Bank Discount Window		0		0		0		18,602		18,884		19,982		18,602		18,884		19,982
Other correspondent banks		0		0		0		75,000		75,000		75,000		75,000		75,000		75,000
Total credit facilities	$	207,858	$	223,853	$	189,021	$	830,886	$	813,606	$	832,806	$	1,038,744	$	1,037,459	$	1,021,827


Uninsured Deposits Information	September 30,			June 30,			December 31,
	2024			2024			2023
Total Deposits - C&N Bank	$	2,152,136		$	2,074,806		$	2,030,909

Estimated Total Uninsured Deposits	$	655,569		$	605,765		$	592,206
Portion of Uninsured Deposits that are
Collateralized		183,274			158,268			151,031
Uninsured and Uncollateralized Deposits	$	472,295		$	447,497		$	441,175

Uninsured and Uncollateralized Deposits as
a % of Total Deposits		21.9	%		21.6	%		21.7	%

Available Funding from Credit Facilities	$	830,886		$	813,606		$	832,806
Fair Value of Available-for-sale Debt
Securities in Excess of Pledging Obligations		223,060			238,375			256,058
Highly Liquid Available Funding	$	1,053,946		$	1,051,981		$	1,088,864

Highly Liquid Available Funding as a % of
Uninsured Deposits		160.8	%		173.7	%		183.9	%

Highly Liquid Available Funding as a % of
Uninsured and Uncollateralized Deposits		223.2	%		235.1	%		246.8	%