EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)



	4TH		4TH
	QUARTER		QUARTER
	2024		2023		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	33,329	$	30,236	$	3,093	10.23	%
Interest Expense		12,856		10,642		2,214	20.80	%
Net Interest Income		20,473		19,594		879	4.49	%
(Credit) Provision for Credit Losses		(531)		951		(1,482)	(155.84)	%
Net Interest Income After (Credit) Provision for Credit Losses		21,004		18,643		2,361	12.66	%
Noninterest Income		7,547		8,720		(1,173)	(13.45)	%
Net Realized Losses on Available-for-sale Debt Securities		0		(3,042)		3,042	(100.00)	%
Noninterest Expense		18,430		18,399		31	0.17	%
Income Before Income Tax Provision		10,121		5,922		4,199	70.91	%
Income Tax Provision		1,947		1,661		286	17.22	%
Net Income	$	8,174	$	4,261	$	3,913	91.83	%
Net Income Attributable to Common Shares (1)	$	8,103	$	4,231	$	3,872	91.52	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.53	$	0.28	$	0.25	89.29	%
Net Income - Diluted	$	0.53	$	0.28	$	0.25	89.29	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,287,462		15,175,013
Number of Shares Used in Computation - Diluted		15,287,462		15,175,013


	YEAR ENDED
	DECEMBER 31,
	2024		2023		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	128,078	$	113,504	$	14,574	12.84	%
Interest Expense		48,963		33,104		15,859	47.91	%
Net Interest Income		79,115		80,400		(1,285)	(1.60)	%
Provision for Credit Losses		2,195		186		2,009	1,080.11	%
Net Interest Income After Provision for Credit Losses		76,920		80,214		(3,294)	(4.11)	%
Noninterest Income		29,209		27,453		1,756	6.40	%
Net Realized Losses on Available-for-sale Debt Securities		0		(3,036)		3,036	(100.00)	%
Noninterest Expense		74,258		74,148		110	0.15	%
Income Before Income Tax Provision		31,871		30,483		1,388	4.55	%
Income Tax Provision		5,913		6,335		(422)	(6.66)	%
Net Income	$	25,958	$	24,148	$	1,810	7.50	%
Net Income Attributable to Common Shares (1)	$	25,747	$	23,962	$	1,785	7.45	%
PER COMMON SHARE DATA:
Net Income - Basic	$	1.69	$	1.57	$	0.12	7.64	%
Net Income - Diluted	$	1.69	$	1.57	$	0.12	7.64	%
Dividends Per Share	$	1.12	$	1.12	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,262,504		15,241,859
Number of Shares Used in Computation - Diluted		15,262,504		15,241,859

(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)


	December 31,		December 31,
	2024		2023		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	126,174	$	56,878	$	69,296	121.83	%
Available-for-sale Debt Securities		402,380		415,755		(13,375)	(3.22)	%
Loans, Net		1,875,813		1,828,931		46,882	2.56	%
Bank-Owned Life Insurance		51,214		63,674		(12,460)	(19.57)	%
Bank Premises and Equipment, Net		21,338		21,632		(294)	(1.36)	%
Deferred Tax Asset, Net		19,098		17,441		1,657	9.50	%
Intangible Assets		54,585		54,974		(389)	(0.71)	%
Other Assets		60,051		56,299		3,752	6.66	%
TOTAL ASSETS	$	2,610,653	$	2,515,584	$	95,069	3.78	%

LIABILITIES
Deposits	$	2,093,909	$	2,014,806	$	79,103	3.93	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		167,939		172,211		(4,272)	(2.48)	%
Senior Notes, Net		14,899		14,831		68	0.46	%
Subordinated Debt, Net		24,831		24,717		114	0.46	%
Other Liabilities		33,791		26,638		7,153	26.85	%
TOTAL LIABILITIES		2,335,369		2,253,203		82,166	3.65	%

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive Loss		312,045		300,818		11,227	3.73	%
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities		(37,084)		(38,878)		1,794	(4.61)	%
Defined Benefit Plans		323		441		(118)	(26.76)	%
TOTAL STOCKHOLDERS' EQUITY		275,284		262,381		12,903	4.92	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,610,653	$	2,515,584	$	95,069	3.78	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	FOR THE
	THREE MONTHS ENDED						%
	December 31,						INCREASE
	2024			2023			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	8,174		$	4,261		91.83	%
Return on Average Assets (Annualized)		1.24	%		0.69	%	79.71	%
Return on Average Equity (Annualized)		11.87	%		7.03	%	68.85	%

PRE-TAX, PRE-PROVISION NET REVENUE ("PPNR") - NON-GAAP (a)
PPNR	$	9,807		$	8,014		22.37	%
PPNR (Annualized) as a % of Average Assets		1.48	%		1.29	%	14.73	%
PPNR (Annualized) as a % of Average Equity		14.24	%		13.22	%	7.72	%

	AS OF OR FOR THE
	YEAR ENDED						%
	December 31,						INCREASE
	2024			2023			(DECREASE)
EARNINGS PERFORMANCE - U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP")
Net Income	$	25,958		$	24,148		7.50	%
Return on Average Assets (Annualized)		1.00	%		0.98	%	2.04	%
Return on Average Equity (Annualized)		9.76	%		9.72	%	0.41	%

PPNR - NON-GAAP (a)
PPNR	$	34,885		$	32,524		7.26	%
PPNR (Annualized) as a % of Average Assets		1.35	%		1.32	%	2.27	%
PPNR (Annualized) as a % of Average Equity		13.12	%		13.09	%	0.23	%

BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,610,653		$	2,515,584		3.78	%
Available-for-Sale Debt Securities		402,380			415,755		(3.22)	%
Loans, Net		1,875,813			1,828,931		2.56	%
Allowance for Credit Losses:
Allowance for Credit Losses on Loans		20,035			19,208		4.31	%
Allowance for Credit Losses on Off-Balance Sheet Exposures		455			690		(34.06)	%
Deposits		2,093,909			2,014,806		3.93	%

OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	329,766		$	323,298		2.00	%
Trust Assets Under Management		1,347,853			1,188,082		13.45	%

STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.69		$	1.57		7.64	%
Net Income - Diluted	$	1.69		$	1.57		7.64	%
Dividends	$	1.12		$	1.12		0.00	%
Common Book Value	$	17.84		$	17.15		4.02	%
Tangible Common Book Value - NON-GAAP (b)	$	14.30		$	13.56		5.46	%
Market Value (Last Trade)	$	18.60		$	22.43		(17.08)	%
Market Value / Common Book Value		104.26	%		130.79	%	(20.28)	%
Market Value / Tangible Common Book Value - NON-GAAP (b)		130.07	%		165.41	%	(21.37)	%
Price Earnings Multiple		11.01			14.29		(22.95)	%
Dividend Yield (Annualized)		6.02	%		4.99	%	20.64	%
Common Shares Outstanding, End of Period		15,433,494			15,295,135		0.90	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	AS OF OR FOR THE
	YEAR ENDED						%
	December 31,						INCREASE
	2024			2023			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (b)		8.63	%		8.43	%	2.37	%
Nonperforming Assets / Total Assets		0.92	%		0.75	%	22.67	%
Allowance for Credit Losses / Total Loans		1.06	%		1.04	%	1.92	%
Total Risk Based Capital Ratio (c)		15.95	%		15.69	%	1.66	%
Tier 1 Risk Based Capital Ratio (c)		13.56	%		13.28	%	2.11	%
Common Equity Tier 1 Risk Based Capital Ratio (c)		13.56	%		13.28	%	2.11	%
Leverage Ratio (c)		9.80	%		9.88	%	(0.81)	%

AVERAGE BALANCES
Average Assets	$	2,583,106		$	2,462,856		4.88	%
Average Equity	$	265,884		$	248,494		7.00	%

EFFICIENCY RATIO - NON-GAAP (d)
Net Interest Income on a Fully Taxable-Equivalent Basis (d)	$	79,934		$	81,319		(1.70)	%
Noninterest Income, Excluding Net Realized Losses on Available-for-sale Debt Securities		29,209			27,453		6.40
Less: Enhancement Fee Included in Noninterest Income Related to Purchase of Bank-Owned Life Insurance		0			(2,100)		(100.00)	%
Total (1)	$	109,143		$	106,672		2.32	%
Noninterest Expense (2)	$	74,258		$	74,148		0.15	%
Efficiency Ratio = (2)/(1)		68.04	%		69.51	%	(2.11)	%

(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 realized gains or losses on securities or 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 below 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	$	2,610,653	$	2,515,584
Less: Intangible Assets, Primarily Goodwill		(54,585)		(54,974)
Tangible Assets	$	2,556,068	$	2,460,610
Total Stockholders' Equity	$	275,284	$	262,381
Less: Intangible Assets, Primarily Goodwill		(54,585)		(54,974)
Tangible Common Equity (3)	$	220,699	$	207,407

Common Shares Outstanding, End of Period (4)		15,433,494		15,295,135
Tangible Common Book Value per Share = (3)/(4)	$	14.30	$	13.56

(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 below 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:
	December 31,		September 30,		June 30,		March 31,		December 31,
	2024		2024		2024		2024		2023
Interest income	$	33,329	$	33,087	$	31,326	$	30,336	$	30,236
Interest expense		12,856		12,931		11,881		11,295		10,642
Net interest income		20,473		20,156		19,445		19,041		19,594
(Credit) provision for credit losses		(531)		1,207		565		954		951
Net interest income after (credit) provision for credit losses		21,004		18,949		18,880		18,087		18,643
Noninterest income		7,547		7,133		7,854		6,675		8,720
Net realized (losses) on securities		0		0		0		0		(3,042)
Noninterest expense		18,430		18,269		19,255		18,304		18,399
Income before income tax provision		10,121		7,813		7,479		6,458		5,922
Income tax provision		1,947		1,448		1,366		1,152		1,661
Net income	$	8,174	$	6,365	$	6,113	$	5,306	$	4,261
Net income attributable to common shares	$	8,103	$	6,311	$	6,066	$	5,267	$	4,231
Basic earnings per common share	$	0.53	$	0.41	$	0.40	$	0.35	$	0.28
Diluted earnings per common share	$	0.53	$	0.41	$	0.40	$	0.35	$	0.28

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)


	As of:
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
	2024		2024		2024		2024		2023
ASSETS
Cash & Due from Banks	$	126,174	$	184,213	$	100,412	$	46,448	$	56,878
Available-for-Sale Debt Securities		402,380		408,422		401,145		405,094		415,755
Loans, Net		1,875,813		1,872,322		1,872,825		1,852,426		1,828,931
Bank-Owned Life Insurance		51,214		50,757		50,301		49,857		63,674
Bank Premises and Equipment, Net		21,338		21,537		21,966		21,852		21,632
Deferred Tax Asset, Net		19,098		17,047		18,375		17,703		17,441
Intangible Assets		54,585		54,682		54,779		54,877		54,974
Other Assets		60,051		61,842		73,319		73,280		56,299
TOTAL ASSETS	$	2,610,653	$	2,670,822	$	2,593,122	$	2,521,537	$	2,515,584

LIABILITIES
Deposits (1)	$	2,093,909	$	2,135,879	$	2,059,309	$	1,995,903	$	2,014,806
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		167,939		186,043		202,523		197,655		172,211
Senior Notes, Net		14,899		14,882		14,865		14,848		14,831
Subordinated Debt, Net		24,831		24,802		24,773		24,745		24,717
Other Liabilities		33,791		31,911		28,431		26,730		26,638
TOTAL LIABILITIES		2,335,369		2,393,517		2,329,901		2,259,881		2,253,203

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss		312,045		307,369		304,582		302,362		300,818
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities		(37,084)		(30,396)		(41,710)		(41,071)		(38,878)
Defined Benefit Plans		323		332		349		365		441
TOTAL STOCKHOLDERS' EQUITY		275,284		277,305		263,221		261,656		262,381
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,610,653	$	2,670,822	$	2,593,122	$	2,521,537	$	2,515,584

(1) Brokered Deposits (Included in Total Deposits)	$	24,021	$	45,051	$	59,501	$	69,391	$	64,369

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)


	December 31, 2024				September 30, 2024				December 31, 2023
	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	8,067	$	7,118	$	8,072	$	7,321	$	12,325	$	11,290
Obligations of U.S. Government agencies		10,154		9,025		10,271		9,376		11,119		9,946
Bank holding company debt securities		28,958		25,246		28,956		23,949		28,952		23,500
Obligations of states and political subdivisions:
Tax-exempt		111,995		101,302		113,093		104,936		113,464		104,199
Taxable		51,147		42,506		55,182		48,434		58,720		50,111
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		104,378		94,414		101,545		94,053		105,549		95,405
Residential collateralized mortgage obligations		53,389		49,894		48,251		45,601		50,212		46,462
Commercial mortgage-backed securities		73,470		64,501		73,695		66,390		76,412		66,682
Private label commercial mortgage-backed securities		8,365		8,374		8,327		8,362		8,215		8,160
Total Available-for-Sale Debt Securities	$	449,923	$	402,380	$	447,392	$	408,422	$	464,968	$	415,755

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)


	December 31,		September 30,		December 31,
	2024		2024		2023
Commercial real estate - non-owner occupied:
Non-owner occupied	$	471,171	$	470,383	$	499,104
Multi-family (5 or more) residential		105,174		87,487		64,076
1-4 Family - commercial purpose		163,220		163,233		174,162
Total commercial real estate - non-owner occupied		739,565		721,103		737,342
Commercial real estate - owner occupied		261,071		266,477		237,246
All other commercial loans:
Commercial and industrial		96,665		93,205		78,832
Commercial lines of credit		120,078		128,461		117,236
Political subdivisions		94,009		85,479		79,031
Commercial construction and land		92,741		105,255		104,123
Other commercial loans		19,784		19,585		20,471
Total all other commercial loans		423,277		431,985		399,693
Residential mortgage loans:
1-4 Family - residential		383,797		383,482		389,262
1-4 Family residential construction		24,212		23,947		24,452
Total residential mortgage		408,009		407,429		413,714
Consumer loans:
Consumer lines of credit (including HELCs)		47,196		43,624		41,503
All other consumer		16,730		22,146		18,641
Total consumer		63,926		65,770		60,144
Total		1,895,848		1,892,764		1,848,139
Less: allowance for credit losses on loans		(20,035)		(20,442)		(19,208)
Loans, net	$	1,875,813	$	1,872,322	$	1,828,931

NON-OWNER OCCUPIED COMMERCIAL REAL ESTATE

(In Thousands)


Loan Type	December 31,		% of Non-owner		% of
	2024		Occupied CRE		Total Loans
Office	$	102,831	21.8	%	5.4	%
Retail		96,142	20.4	%	5.1	%
Industrial		79,839	16.9	%	4.2	%
Hotels		70,229	14.9	%	3.7	%
Mixed Use		60,837	12.9	%	3.2	%
Other		61,293	13.0	%	3.2	%
Total Non-owner Occupied CRE Loans	$	471,171
Total Gross Loans	$	1,895,848

PAST DUE LOANS AND NONPERFORMING ASSETS

(Dollars In Thousands)


	December 31,			September 30,			December 31,
	2024			2024			2023
Loans individually evaluated with a valuation allowance	$	258		$	1,622		$	7,786
Loans individually evaluated without a valuation allowance		18,843			18,069			3,478
Total individually evaluated loans	$	19,101		$	19,691		$	11,264

Total loans past due 30-89 days and still accruing	$	5,658		$	15,906		$	9,275

Nonperforming assets:
Total nonaccrual loans	$	23,842		$	24,401		$	15,177
Total loans past due 90 days or more and still accruing		119			56			3,190
Total nonperforming loans		23,961			24,457			18,367
Foreclosed assets held for sale (real estate)		181			181			478
Total nonperforming assets	$	24,142		$	24,638		$	18,845

Total nonperforming loans as a % of total loans		1.26	%		1.29	%		0.99	%
Total nonperforming assets as a % of assets		0.92	%		0.92	%		0.75	%
Allowance for credit losses as a % of total loans		1.06	%		1.08	%		1.04	%

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LOANS

(In Thousands)


	3 Months		3 Months		Year			Year
	Ended		Ended		Ended			Ended
	December 31,		September 30,		December 31,			December 31,
	2024		2024		2024			2023
Balance, beginning of period	$	20,442	$	20,382	$	19,208		$	16,615
Adoption of ASU 2016-13 (CECL)		0		0		0			2,104
Charge-offs		(32)		(1,268)		(1,716)			(356)
Recoveries		18		31		113			92
Net charge-offs		(14)		(1,237)		(1,603)			(264)
(Credit) provision for credit losses on loans		(393)		1,297		2,430			753
Balance, end of period	$	20,035	$	20,442	$	20,035		$	19,208

Net charge-offs as a % of average gross loans						0.09	%		0.01	%

ANALYSIS OF THE (CREDIT) PROVISION FOR CREDIT LOSSES

(In Thousands)


	3 Months		3 Months		Year		Year
	Ended		Ended		Ended		Ended
	December 31,		September 30,		December 31,		December 31,
	2024		2024		2024		2023
Provision (credit) for credit losses:
Loans receivable	$	(393)	$	1,297	$	2,430	$	753
Off-balance sheet exposures		(138)		(90)		(235)		(567)
Total (credit) provision for credit losses	$	(531)	$	1,207	$	2,195	$	186

PPNR NON- GAAP RECONCILIATION

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
Calculation of PPNR:	2024		2024		2023		2024		2023
Net Income (GAAP)	$	8,174	$	6,365	$	4,261	$	25,958	$	24,148
Add: Provision for income taxes		1,947		1,448		1,661		5,913		6,335
Add: (Credit) provision for credit losses		(531)		1,207		951		2,195		186
Less: Enhancement fee included in noninterest income related to purchase of Bank-Owned Life Insurance		0		0		(2,100)		0		(2,100)
Add: Realized losses on available-for-sale securities debt securities		0		0		3,042		0		3,036
Add: Adjustments to reflect net interest income on a fully taxable-equivalent basis		217		205		199		819		919
PPNR (non-GAAP)	$	9,807	$	9,225	$	8,014	$	34,885	$	32,524

COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2024		2024		2023		2024		2023
INTEREST INCOME
Interest-bearing due from banks	$	1,786	$	1,622	$	447	$	4,307	$	1,379
Available-for-sale debt securities:
Taxable		2,184		2,136		2,115		8,593		8,555
Tax-exempt		644		638		654		2,531		2,815
Total available-for-sale debt securities		2,828		2,774		2,769		11,124		11,370
Loans receivable:
Taxable		28,104		28,099		26,532		110,396		98,846
Tax-exempt		795		749		663		2,944		2,764
Total loans receivable		28,899		28,848		27,195		113,340		101,610
Other earning assets		33		48		24		126		64
Total Interest Income		33,546		33,292		30,435		128,897		114,423

INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		3,269		3,240		2,809		12,151		7,668
Money market		2,333		2,159		2,032		8,589		5,686
Savings		50		50		57		207		243
Time deposits		4,931		4,963		3,742		18,253		10,636
Total interest-bearing deposits		10,583		10,412		8,640		39,200		24,233
Borrowed funds:
Short-term		27		184		322		1,168		3,240
Long-term - FHLB advances		1,894		1,983		1,329		7,188		4,230
Senior notes, net		121		120		120		481		479
Subordinated debt, net		231		232		231		926		922
Total borrowed funds		2,273		2,519		2,002		9,763		8,871
Total Interest Expense		12,856		12,931		10,642		48,963		33,104

Net Interest Income	$	20,690	$	20,361	$	19,793	$	79,934	$	81,319

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						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2024		2024		2023		2024		2023
Net Interest Income Under U.S. GAAP	$	20,473	$	20,156	$	19,594	$	79,115	$	80,400
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		69		66		74		271		388
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		148		139		125		548		531
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	20,690	$	20,361	$	19,793	$	79,934	$	81,319

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
	12/31/2024		Return/		9/30/2024		Return/		12/31/2023		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	150,003	4.74	%	$	119,885	5.38	%	$	37,555	4.72	%
Available-for-sale debt securities, at amortized cost:
Taxable		333,376	2.61	%		336,246	2.53	%		372,797	2.25	%
Tax-exempt		112,686	2.27	%		113,514	2.24	%		121,143	2.14	%
Total available-for-sale debt securities		446,062	2.52	%		449,760	2.45	%		493,940	2.22	%
Loans receivable:
Taxable		1,800,732	6.21	%		1,797,224	6.22	%		1,752,047	6.01	%
Tax-exempt		92,440	3.42	%		91,246	3.27	%		84,349	3.12	%
Total loans receivable		1,893,172	6.07	%		1,888,470	6.08	%		1,836,396	5.88	%
Other earning assets		2,147	6.11	%		3,076	6.21	%		1,534	6.21	%
Total Earning Assets		2,491,384	5.36	%		2,461,191	5.38	%		2,369,425	5.10	%
Cash		20,988				24,987				21,019
Unrealized loss on securities		(42,753)				(47,806)				(72,605)
Allowance for credit losses		(20,750)				(20,643)				(18,575)
Bank-owned life insurance		50,923				50,470				32,980
Bank premises and equipment		21,488				21,793				21,532
Intangible assets		54,632				54,730				55,025
Other assets		70,976				73,320				78,558
Total Assets	$	2,646,888			$	2,618,042			$	2,487,359

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	573,133	2.27	%	$	543,288	2.37	%	$	521,432	2.14	%
Money market		373,558	2.48	%		356,487	2.41	%		354,854	2.27	%
Savings		193,554	0.10	%		198,312	0.10	%		218,810	0.10	%
Time deposits		490,363	4.00	%		485,708	4.07	%		429,898	3.45	%
Total interest-bearing deposits		1,630,608	2.58	%		1,583,795	2.62	%		1,524,994	2.25	%
Borrowed funds:
Short-term		3,852	2.79	%		15,038	4.87	%		24,196	5.28	%
Long-term - FHLB advances		169,346	4.45	%		181,075	4.36	%		132,089	3.99	%
Senior notes, net		14,889	3.23	%		14,875	3.21	%		14,822	3.21	%
Subordinated debt, net		24,819	3.70	%		24,787	3.72	%		24,704	3.71	%
Total borrowed funds		212,906	4.25	%		235,775	4.25	%		195,811	4.06	%
Total Interest-bearing Liabilities		1,843,514	2.77	%		1,819,570	2.83	%		1,720,805	2.45	%
Demand deposits		496,161				500,859				491,944
Other liabilities		31,763				29,226				32,122
Total Liabilities		2,371,438				2,349,655				2,244,871
Stockholders' equity, excluding accumulated other comprehensive loss		308,472				305,808				299,401
Accumulated other comprehensive loss		(33,022)				(37,421)				(56,913)
Total Stockholders' Equity		275,450				268,387				242,488
Total Liabilities and Stockholders' Equity	$	2,646,888			$	2,618,042			$	2,487,359
Interest Rate Spread			2.59	%			2.55	%			2.65	%
Net Interest Income/Earning Assets			3.30	%			3.29	%			3.31	%

Total Deposits (Interest-bearing and Demand)	$	2,126,769			$	2,084,654			$	2,016,938

(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)


	Year				Year
	Ended		Rate of		Ended		Rate of
	12/31/2024		Return/		12/31/2023		Return/
	Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds%
EARNING ASSETS
Interest-bearing due from banks	$	86,703	4.97	%	$	32,709	4.22	%
Available-for-sale debt securities, at amortized cost:
Taxable		340,339	2.52	%		389,456	2.20	%
Tax-exempt		113,121	2.24	%		125,920	2.24	%
Total available-for-sale debt securities		453,460	2.45	%		515,376	2.21	%
Loans receivable:
Taxable		1,791,187	6.16	%		1,703,839	5.80	%
Tax-exempt		89,935	3.27	%		88,310	3.12	%
Total loans receivable		1,881,122	6.03	%		1,792,149	5.67	%
Other earning assets		2,198	5.73	%		1,383	4.63	%
Total Earning Assets		2,423,483	5.32	%		2,341,617	4.89	%
Cash		22,209				22,108
Unrealized loss on securities		(49,520)				(63,118)
Allowance for credit losses		(20,294)				(18,498)
Bank-owned life insurance		51,465				31,808
Bank premises and equipment		21,765				21,330
Intangible assets		54,778				55,176
Other assets		79,220				72,433
Total Assets	$	2,583,106			$	2,462,856

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	537,233	2.26	%	$	488,761	1.57	%
Money market		358,274	2.40	%		347,130	1.64	%
Savings		203,129	0.10	%		238,760	0.10	%
Time deposits		465,882	3.92	%		381,488	2.79	%
Total interest-bearing deposits		1,564,518	2.51	%		1,456,139	1.66	%
Borrowed funds:
Short-term		22,743	5.14	%		62,926	5.15	%
Long-term - FHLB advances		167,181	4.30	%		110,943	3.81	%
Senior notes, net		14,865	3.24	%		14,798	3.24	%
Subordinated debt, net		24,774	3.74	%		24,662	3.74	%
Total borrowed funds		229,563	4.25	%		213,329	4.16	%
Total Interest-bearing Liabilities		1,794,081	2.73	%		1,669,468	1.98	%
Demand deposits		493,052				515,787
Other liabilities		30,089				29,107
Total Liabilities		2,317,222				2,214,362
Stockholders' equity, excluding accumulated other comprehensive loss		304,532				297,894
Accumulated other comprehensive loss		(38,648)				(49,400)
Total Stockholders' Equity		265,884				248,494
Total Liabilities and Stockholders' Equity	$	2,583,106			$	2,462,856
Interest Rate Spread			2.59	%			2.91	%
Net Interest Income/Earning Assets			3.30	%			3.47	%

Total Deposits (Interest-bearing and Demand)	$	2,057,570			$	1,971,926

(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.

COMPARISON OF NONINTEREST INCOME

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2024		2024		2023		2024		2023
Trust revenue	$	2,071	$	1,946	$	1,913	$	7,928	$	7,413
Brokerage and insurance revenue		682		523		486		2,271		1,675
Service charges on deposit accounts		1,531		1,546		1,446		5,867		5,567
Interchange revenue from debit card transactions		1,071		1,103		1,045		4,276		4,160
Net gains from sales of loans		372		360		273		1,158		723
Loan servicing fees, net		215		74		136		649		602
Increase in cash surrender value of life insurance		458		458		2,253		1,830		2,703
Other noninterest income		1,147		1,123		1,168		5,230		4,610
Total noninterest income, excluding realized losses on securities, net	$	7,547	$	7,133	$	8,720	$	29,209	$	27,453

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2024		2024		2023		2024		2023
Salaries and employee benefits	$	11,470	$	10,875	$	11,113	$	44,930	$	44,195
Net occupancy and equipment expense		1,313		1,377		1,364		5,473		5,357
Data processing and telecommunications expenses		1,891		1,882		1,923		7,768		7,582
Automated teller machine and interchange expense		348		510		308		1,818		1,682
Pennsylvania shares tax		433		433		392		1,733		1,602
Professional fees		550		555		509		2,175		2,497
Other noninterest expense		2,425		2,637		2,790		10,361		11,233
Total noninterest expense	$	18,430	$	18,269	$	18,399	$	74,258	$	74,148

LIQUIDITY INFORMATION

(In Thousands)


Available Credit Facilities	Outstanding						Available						Total Credit
	Dec. 31,		September 30,		Dec. 31,		Dec. 31,		September 30,		Dec. 31,		Dec. 31,		September 30,		Dec. 31,
	2024		2024		2023		2024		2024		2023		2024		2024		2023
Federal Home Loan Bank of Pittsburgh	$	188,692	$	207,858	$	189,021	$	749,999	$	737,284	$	737,824	$	938,691	$	945,142	$	926,845
Federal Reserve Bank Discount Window		0		0		0		18,093		18,602		19,982		18,093		18,602		19,982
Other correspondent banks		0		0		0		75,000		75,000		75,000		75,000		75,000		75,000
Total credit facilities	$	188,692	$	207,858	$	189,021	$	843,092	$	830,886	$	832,806	$	1,031,784	$	1,038,744	$	1,021,827


Uninsured Deposits Information	December 31,			September 30,			December 31,
	2024			2024			2023
Total Deposits - C&N Bank	$	2,111,547		$	2,152,136		$	2,030,909

Estimated Total Uninsured Deposits	$	632,804		$	655,569		$	592,206
Portion of Uninsured Deposits that are
Collateralized		161,958			183,274			151,031
Uninsured and Uncollateralized Deposits	$	470,846		$	472,295		$	441,175

Uninsured and Uncollateralized Deposits as
a % of Total Deposits		22.3	%		21.9	%		21.7	%

Available Funding from Credit Facilities	$	843,092		$	830,886		$	832,806
Fair Value of Available-for-sale Debt
Securities in Excess of Pledging Obligations		236,945			223,060			256,058
Highly Liquid Available Funding	$	1,080,037		$	1,053,946		$	1,088,864

Highly Liquid Available Funding as a % of
Uninsured Deposits		170.7	%		160.8	%		183.9	%

Highly Liquid Available Funding as a % of
Uninsured and Uncollateralized Deposits		229.4	%		223.2	%		246.8	%