EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	3RD		3RD
	QUARTER		QUARTER
	2022		2021
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	23,710	$	21,073	$	2,637	12.51	%
Interest Expense		2,831		1,614		1,217	75.40	%
Net Interest Income		20,879		19,459		1,420	7.30	%
Provision for Loan Losses		3,794		1,530		2,264	147.97	%
Net Interest Income After Provision for Loan Losses		17,085		17,929		(844)	(4.71)	%
Noninterest Income		5,651		6,359		(708)	(11.13)	%
Net Gains on Available-for-sale Debt Securities		20		23		(3)	(13.04)	%
Noninterest Expense		17,443		15,346		2,097	13.66	%
Income Before Income Tax Provision		5,313		8,965		(3,652)	(40.74)	%
Income Tax Provision		858		1,566		(708)	(45.21)	%
Net Income	$	4,455	$	7,399	$	(2,944)	(39.79)	%
Net Income Attributable to Common Shares (1)	$	4,416	$	7,336	$	(2,920)	(39.80)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.29	$	0.47	$	(0.18)	(38.30)	%
Net Income - Diluted	$	0.29	$	0.47	$	(0.18)	(38.30)	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,364,075		15,703,932
Number of Shares Used in Computation - Diluted		15,367,189		15,710,345


	NINE MONTHS ENDED
	September 30,
	2022		2021
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	66,792	$	63,255	$	3,537	5.59	%
Interest Expense		5,956		5,032		924	18.36	%
Net Interest Income		60,836		58,223		2,613	4.49	%
Provision for Loan Losses		4,993		2,533		2,460	97.12	%
Net Interest Income After Provision for Loan Losses		55,843		55,690		153	0.27	%
Noninterest Income		18,302		19,441		(1,139)	(5.86)	%
Net Gains on Available-for-sale Debt Securities		21		25		(4)	(16.00)	%
Noninterest Expense		51,368		46,454		4,914	10.58	%
Income Before Income Tax Provision		22,798		28,702		(5,904)	(20.57)	%
Income Tax Provision		3,959		5,456		(1,497)	(27.44)	%
Net Income	$	18,839	$	23,246	$	(4,407)	(18.96)	%
Net Income Attributable to Common Shares (1)	$	18,670	$	23,057	$	(4,387)	(19.03)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	1.21	$	1.46	$	(0.25)	(17.12)	%
Net Income - Diluted	$	1.21	$	1.46	$	(0.25)	(17.12)	%
Dividends Per Share	$	0.84	$	0.83	$	0.01	1.20	%
Number of Shares Used in Computation - Basic		15,482,672		15,806,897
Number of Shares Used in Computation - Diluted		15,485,948		15,813,129

(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,
	2022		2021		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	64,044	$	198,995	$	(134,951)	(67.82)	%
Available-for-sale Debt Securities		487,980		437,857		50,123	11.45	%
Loans, Net		1,674,076		1,563,008		111,068	7.11	%
Bank-Owned Life Insurance		31,075		30,530		545	1.79	%
Bank Premises and Equipment, Net		21,881		20,526		1,355	6.60	%
Deferred Tax Asset, Net		22,327		5,128		17,199	335.39	%
Intangible Assets		55,492		55,955		(463)	(0.83)	%
Other Assets		43,305		42,897		408	0.95	%
TOTAL ASSETS	$	2,400,180	$	2,354,896	$	45,284	1.92	%

LIABILITIES
Deposits	$	2,039,595	$	1,940,141	$	99,454	5.13	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		57,920		40,555		17,365	42.82	%
Senior Notes, Net		14,749		14,685		64	0.44	%
Subordinated Debt, Net		24,580		32,988		(8,408)	(25.49)	%
Other Liabilities		24,547		27,125		(2,578)	(9.50)	%
TOTAL LIABILITIES		2,161,391		2,055,494		105,897	5.15	%

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive (Loss) Income		295,258		292,997		2,261	0.77	%
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized (Losses) Gains on Available-for-sale Debt Securities		(56,766)		6,300		(63,066)	(1,001.05)	%
Defined Benefit Plans		297		105		192	182.86	%
TOTAL STOCKHOLDERS' EQUITY		238,789		299,402		(60,613)	(20.24)	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,400,180	$	2,354,896	$	45,284	1.92	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	FOR THE
	THREE MONTHS ENDED						%
	September 30,						INCREASE
	2022			2021			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	4,455		$	7,399		(39.79)	%
Return on Average Assets (Annualized)		0.74	%		1.26	%	(41.27)	%
Return on Average Equity (Annualized)		6.85	%		9.77	%	(29.89)	%


	AS OF OR FOR THE
	NINE MONTHS ENDED						%
	September 30,						INCREASE
	2022			2021			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	18,839		$	23,246		(18.96)	%
Return on Average Assets (Annualized)		1.06	%		1.34	%	(20.90)	%
Return on Average Equity (Annualized)		9.20	%		10.28	%	(10.51)	%

BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,400,180		$	2,354,896		1.92	%
Available-for-Sale Debt Securities		487,980			437,857		11.45	%
Loans, Net		1,674,076			1,563,008		7.11	%
Allowance for Loan Losses		16,170			12,700		27.32	%
Deposits		2,039,595			1,940,141		5.13	%

OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	331,675		$	328,659		0.92	%
Trust Assets Under Management		1,003,785			1,183,900		(15.21)	%

STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.21		$	1.46		(17.12)	%
Net Income - Diluted	$	1.21		$	1.46		(17.12)	%
Dividends	$	0.84		$	0.83		1.20	%
Common Book Value	$	15.41		$	19.01		(18.94)	%
Tangible Common Book Value (a)	$	11.83		$	15.46		(23.48)	%
Market Value (Last Trade)	$	24.18		$	25.26		(4.28)	%
Market Value / Common Book Value		156.91	%		132.88	%	18.08	%
Market Value / Tangible Common Book Value		204.40	%		163.39	%	25.10	%
Price Earnings Multiple (Annualized)		15.02			12.95		15.98	%
Dividend Yield (Annualized)		4.63	%		4.39	%	5.47	%
Common Shares Outstanding, End of Period		15,500,416			15,750,250		(1.59)	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	AS OF OR FOR THE
	NINE MONTHS ENDED						%
	September 30,						INCREASE
	2022			2021			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (a)		7.82	%		10.59	%	(26.16)	%
Nonperforming Assets / Total Assets		0.87	%		1.05	%	(17.14)	%
Allowance for Loan Losses / Total Loans		0.96	%		0.81	%	18.52	%
Total Risk Based Capital Ratio (b)		15.86	%		18.57	%	(14.59)	%
Tier 1 Risk Based Capital Ratio (b)		13.53	%		15.53	%	(12.88)	%
Common Equity Tier 1 Risk Based Capital Ratio (b)		13.53	%		15.53	%	(12.88)	%
Leverage Ratio (b)		10.04	%		10.34	%	(2.90)	%

AVERAGE BALANCES
Average Assets	$	2,359,863		$	2,310,531		2.14	%
Average Equity	$	273,129		$	301,474		(9.40)	%

EFFICIENCY RATIO (c)
Net Interest Income on a Fully Taxable-Equivalent
Basis (c)	$	61,759		$	59,056		4.58	%
Noninterest Income		18,302			19,441		(5.86)	%
Total (1)	$	80,061		$	78,497		1.99	%
Noninterest Expense (2)	$	51,368		$	46,454		10.58	%
Efficiency Ratio = (2)/(1)		64.16	%		59.18	%	8.42	%

(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	$	2,400,180	$	2,354,896
Less: Intangible Assets, Primarily Goodwill		(55,492)		(55,955)
Tangible Assets	$	2,344,688	$	2,298,941
Total Stockholders' Equity	$	238,789	$	299,402
Less: Intangible Assets, Primarily Goodwill		(55,492)		(55,955)
Tangible Common Equity (3)	$	183,297	$	243,447

Common Shares Outstanding, End of Period (4)		15,500,416		15,750,250
Tangible Common Book Value per Share = (3)/(4)	$	11.83	$	15.46

(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”.

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,		June 30,		March 31,
	2022		2022		2022		2021		2021		2021		2021
Interest income	$	23,710	$	21,309	$	21,773	$	21,246	$	21,073	$	20,428	$	21,754
Interest expense		2,831		1,684		1,441		1,530		1,614		1,747		1,671
Net interest income		20,879		19,625		20,332		19,716		19,459		18,681		20,083
Provision for loan losses		3,794		308		891		1,128		1,530		744		259
Net interest income after provision for loan losses		17,085		19,317		19,441		18,588		17,929		17,937		19,824
Noninterest income		5,651		6,830		5,821		6,416		6,359		6,300		6,782
Net gains (losses) on securities		20		(1)		2		(1)		23		2		0
Noninterest expense		17,443		17,039		16,886		16,018		15,346		15,399		15,709
Income before income tax provision		5,313		9,107		8,378		8,985		8,965		8,840		10,897
Income tax provision		858		1,618		1,483		1,677		1,566		1,780		2,110
Net income	$	4,455	$	7,489	$	6,895	$	7,308	$	7,399	$	7,060	$	8,787
Net income attributable to common shares	$	4,416	$	7,419	$	6,835	$	7,256	$	7,336	$	6,999	$	8,722
Basic earnings per common share	$	0.29	$	0.48	$	0.44	$	0.46	$	0.47	$	0.44	$	0.55
Diluted earnings per common share	$	0.29	$	0.48	$	0.44	$	0.46	$	0.47	$	0.44	$	0.55

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)


	As of:
	September 30,		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2022		2022		2021		2021		2021		2021
ASSETS
Cash & Due from Banks	$	64,044	$	69,187	$	114,346	$	104,948	$	198,995	$	208,860	$	207,145
Available-for-Sale Debt Securities		487,980		526,837		532,913		517,679		437,857		391,881		366,376
Loans, Net		1,674,076		1,643,057		1,523,919		1,551,312		1,563,008		1,585,481		1,602,926
Bank-Owned Life Insurance		31,075		30,941		30,805		30,670		30,530		30,391		30,247
Bank Premises and Equipment, Net		21,881		21,829		21,169		20,683		20,526		20,620		20,740
Deferred Tax Asset, Net		22,327		16,331		11,818		5,887		5,128		3,408		3,530
Intangible Assets		55,492		55,602		55,711		55,821		55,955		56,088		56,222
Other Assets		43,305		46,934		39,690		40,648		42,897		42,334		46,409
TOTAL ASSETS	$	2,400,180	$	2,410,718	$	2,330,371	$	2,327,648	$	2,354,896	$	2,339,063	$	2,333,595

LIABILITIES
Deposits	$	2,039,595	$	1,964,270	$	1,960,952	$	1,925,060	$	1,940,141	$	1,916,809	$	1,923,925
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		57,920		126,833		22,938		29,845		40,555		46,450		60,230
Senior Notes, Net		14,749		14,733		14,717		14,701		14,685		14,670		0
Subordinated Debt, Net		24,580		24,553		33,031		33,009		32,988		32,967		16,534
Other Liabilities		24,547		21,710		22,525		23,628		27,125		24,034		32,850
TOTAL LIABILITIES		2,161,391		2,152,099		2,054,163		2,026,243		2,055,494		2,034,930		2,033,539

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive (Loss) Income		295,258		294,621		296,386		296,379		292,997		294,857		293,097
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized (Losses) Gains on Available-for-sale Securities		(56,766)		(36,307)		(20,492)		4,809		6,300		9,167		6,847
Defined Benefit Plans		297		305		314		217		105		109		112
TOTAL STOCKHOLDERS' EQUITY		238,789		258,619		276,208		301,405		299,402		304,133		300,056
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,400,180	$	2,410,718	$	2,330,371	$	2,327,648	$	2,354,896	$	2,339,063	$	2,333,595

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)


	September 30, 2022				June 30, 2022				December 31, 2021				September 30, 2021
	Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	35,155	$	31,599	$	38,151	$	35,774	$	25,058	$	24,912	$	25,088	$	25,068
Obligations of U.S. Government agencies		23,939		21,389		24,454		22,785		23,936		24,091		23,935		24,312
Bank holding company debt securities		28,944		25,432		28,942		27,415		18,000		17,987		0		0
Obligations of states and political subdivisions:
Tax-exempt		146,847		126,710		152,063		139,400		143,427		148,028		135,362		139,244
Taxable		69,902		58,317		72,204		63,898		72,182		72,765		69,426		70,493
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		116,833		102,739		114,367		106,043		98,048		98,181		59,920		60,629
Residential collateralized mortgage obligations		44,075		39,632		47,295		44,761		44,015		44,247		43,811		44,593
Commercial mortgage-backed securities		89,349		77,383		95,318		86,761		86,926		87,468		72,341		73,518
Private label commercial mortgage-backed securities		4,793		4,779		0		0		0		0		0		0
Total Available-for-Sale Debt Securities	$	559,837	$	487,980	$	572,794	$	526,837	$	511,592	$	517,679	$	429,883	$	437,857

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)


	September 30,		June 30,		December 31,		September 30,
	2022		2022		2021		2021
Commercial:
Commercial loans secured by real estate	$	658,861	$	656,892	$	569,840	$	553,389
Commercial and industrial		172,258		171,999		159,073		152,244
Paycheck Protection Program - 1st Draw		24		44		1,356		5,747
Paycheck Protection Program - 2nd Draw		2,011		6,208		25,508		56,981
Political subdivisions		83,725		87,512		81,301		73,503
Commercial construction and land		76,194		58,786		60,579		53,267
Loans secured by farmland		12,839		12,967		11,121		10,812
Multi-family (5 or more) residential		59,315		53,753		50,089		52,962
Agricultural loans		2,492		2,628		2,351		3,092
Other commercial loans		14,636		15,767		17,153		17,312
Total commercial		1,082,355		1,066,556		978,371		979,309
Residential mortgage:
Residential mortgage loans - first liens		492,854		482,505		483,629		494,376
Residential mortgage loans - junior liens		24,208		23,036		23,314		24,303
Home equity lines of credit		42,972		40,887		39,252		38,465
1-4 Family residential construction		29,950		26,071		23,151		21,719
Total residential mortgage		589,984		572,499		569,346		578,863
Consumer		17,907		18,549		17,132		17,536
Total		1,690,246		1,657,604		1,564,849		1,575,708
Less: allowance for loan losses		(16,170)		(14,547)		(13,537)		(12,700)
Loans, net	$	1,674,076	$	1,643,057	$	1,551,312	$	1,563,008

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(In Thousands)


	3 Months		3 Months		9 Months		9 Months
	Ended		Ended		Ended		Ended
	September 30,		June 30,		September 30,		September 30,
	2022		2022		2022		2021
Balance, beginning of period	$	14,547	$	14,271	$	13,537	$	11,385
Charge-offs		(2,196)		(41)		(2,417)		(1,278)
Recoveries		25		9		57		60
Net charge-offs		(2,171)		(32)		(2,360)		(1,218)
Provision for loan losses		3,794		308		4,993		2,533
Balance, end of period	$	16,170	$	14,547	$	16,170	$	12,700

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS

AND TROUBLED DEBT RESTRUCTURINGS (TDRs)

(Dollars In Thousands)


	September 30,			June 30,			December 31,			September 30,
	2022			2022			2021			2021
Impaired loans with a valuation allowance	$	8,156		$	3,392		$	6,540		$	7,225
Impaired loans without a valuation allowance		1,370			1,376			2,636			4,165
Purchased credit impaired loans		3,783			3,879			6,558			6,624
Total impaired loans	$	13,309		$	8,647		$	15,734		$	18,014

Total loans past due 30-89 days and still accruing	$	3,041		$	5,082		$	5,106		$	2,139

Nonperforming assets:
Purchased credit impaired loans	$	3,783		$	3,879		$	6,558		$	6,624
Other nonaccrual loans		13,176			7,763			12,441			14,717
Total nonaccrual loans		16,959			11,642			18,999			21,341
Total loans past due 90 days or more and still accruing		3,499			2,694			2,219			1,924
Total nonperforming loans		20,458			14,336			21,218			23,265
Foreclosed assets held for sale (real estate)		454			505			684			1,374
Total nonperforming assets	$	20,912		$	14,841		$	21,902		$	24,639

Loans subject to troubled debt restructurings (TDRs):
Performing	$	231		$	239		$	288		$	232
Nonperforming		3,960			3,965			5,517			5,591
Total TDRs	$	4,191		$	4,204		$	5,805		$	5,823

Total nonperforming loans as a % of total loans		1.21	%		0.86	%		1.36	%		1.48	%
Total nonperforming assets as a % of assets		0.87	%		0.62	%		0.94	%		1.05	%
Allowance for loan losses as a % of total loans		0.96	%		0.88	%		0.87	%		0.81	%
Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (a)		1.08	%		1.02	%		1.08	%		1.05	%
Allowance for loan losses as a % of nonperforming loans		79.04	%		101.47	%		63.80	%		54.59	%

(a) Credit adjustment on purchased non-impaired loans at end of period	$	2,095		$	2,403		$	3,335		$	3,836
Allowance for loan losses		16,170			14,547			13,537			12,700
Total credit adjustment on purchased non-impaired loans at end of period and allowance for loan losses (1)	$	18,265		$	16,950		$	16,872		$	16,536
Total loans receivable	$	1,690,246		$	1,657,604		$	1,564,849		$	1,575,708
Credit adjustment on purchased non-impaired loans at end of period		2,095			2,403			3,335			3,836
Total (2)	$	1,692,341		$	1,660,007		$	1,568,184		$	1,579,544
Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (1)/(2)		1.08	%		1.02	%		1.08	%		1.05	%

ADJUSTMENTS TO GROSS AMORTIZED COST OF LOANS

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2022		2022		2021		2022		2021
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(866)	$	(885)	$	(5)	$	(637)	$	718
Accretion (amortization) recognized in interest income		5		19		(368)		(224)		(1,091)
Adjustments to gross amortized cost of loans at end of period	$	(861)	$	(866)	$	(373)	$	(861)	$	(373)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(2,403)	$	(2,782)	$	(4,502)	$	(3,335)	$	(5,979)
Accretion recognized in interest income		308		379		666		1,240		2,143
Adjustments to gross amortized cost of loans at end of period	$	(2,095)	$	(2,403)	$	(3,836)	$	(2,095)	$	(3,836)

PURCHASED CREDIT IMPAIRED (PCI) LOANS

(In Thousands)


	September 30,		June 30,		September 30,
	2022		2022		2021
Outstanding balance	$	5,564	$	5,766	$	10,064
Carrying amount		3,783		3,879		6,624

COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2022		2022		2021		2022		2021
INTEREST INCOME
Interest-bearing due from banks	$	176	$	92	$	106	$	335	$	230
Available-for-sale debt securities:
Taxable		2,138		2,036		1,304		6,143		3,604
Tax-exempt		947		959		842		2,811		2,467
Total available-for-sale debt securities		3,085		2,995		2,146		8,954		6,071
Loans receivable:
Taxable		19,967		17,721		16,890		55,662		51,209
Paycheck Protection Program -1st Draw		4		11		618		53		3,289
Paycheck Protection Program - 2nd Draw		114		195		1,021		846		1,597
Tax-exempt		635		588		568		1,796		1,639
Total loans receivable		20,720		18,515		19,097		58,357		57,734
Other earning assets		38		19		16		69		53
Total Interest Income		24,019		21,621		21,365		67,715		64,088

INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		487		308		230		989		686
Money market		639		369		269		1,270		895
Savings		66		64		58		191		170
Time deposits		780		389		506		1,562		1,807
Total interest-bearing deposits		1,972		1,130		1,063		4,012		3,558
Borrowed funds:
Short-term		179		122		0		302		22
Long-term - FHLB advances		332		55		87		436		330
Senior notes, net		119		120		118		357		175
Subordinated debt, net		229		257		346		849		947
Total borrowed funds		859		554		551		1,944		1,474
Total Interest Expense		2,831		1,684		1,614		5,956		5,032

Net Interest Income	$	21,188	$	19,937	$	19,751	$	61,759	$	59,056

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						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2022		2022		2021		2022		2021
Net Interest Income Under U.S. GAAP	$	20,879	$	19,625	$	19,459	$	60,836	$	58,223
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		179		191		173		553		494
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		130		121		119		370		339
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	21,188	$	19,937	$	19,751	$	61,759	$	59,056

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
	9/30/2022		Return/		6/30/2022		Return/		9/30/2021		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	34,465	2.03	%	$	47,428	0.78	%	$	195,359	0.22	%
Available-for-sale debt securities, at amortized cost:
Taxable		414,147	2.05	%		419,824	1.95	%		263,682	1.96	%
Tax-exempt		150,773	2.49	%		151,753	2.53	%		127,466	2.62	%
Total available-for-sale debt securities		564,920	2.17	%		571,577	2.10	%		391,148	2.18	%
Loans receivable:
Taxable		1,582,245	5.01	%		1,494,165	4.76	%		1,426,503	4.70	%
Paycheck Protection Program - 1st Draw		34	46.68	%		707	6.24	%		19,625	12.49	%
Paycheck Protection Program - 2nd Draw		4,661	9.70	%		8,565	9.13	%		68,108	5.95	%
Tax-exempt		87,330	2.88	%		85,447	2.76	%		77,621	2.90	%
Total loans receivable		1,674,270	4.91	%		1,588,884	4.67	%		1,591,857	4.76	%
Other earning assets		3,925	3.84	%		2,321	3.28	%		2,355	2.70	%
Total Earning Assets		2,277,580	4.18	%		2,210,210	3.92	%		2,180,719	3.89	%
Cash		23,731				23,114				24,436
Unrealized (loss) gain on securities		(44,559)				(36,675)				12,411
Allowance for loan losses		(14,914)				(14,509)				(12,688)
Bank-owned life insurance		30,991				30,857				30,445
Bank premises and equipment		21,874				21,556				20,620
Intangible assets		55,547				55,656				56,021
Other assets		57,012				55,735				43,947
Total Assets	$	2,407,262			$	2,345,944			$	2,355,911

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	442,647	0.44	%	$	431,997	0.29	%	$	423,371	0.22	%
Money market		438,770	0.58	%		449,656	0.33	%		446,385	0.24	%
Savings		261,422	0.10	%		255,578	0.10	%		231,093	0.10	%
Time deposits		298,628	1.04	%		268,753	0.58	%		312,979	0.64	%
Total interest-bearing deposits		1,441,467	0.54	%		1,405,984	0.32	%		1,413,828	0.30	%
Borrowed funds:
Short-term		33,970	2.09	%		36,848	1.33	%		2,185	0.00	%
Long-term - FHLB advances		51,628	2.55	%		19,516	1.13	%		41,083	0.84	%
Senior notes, net		14,741	3.20	%		14,725	3.27	%		14,674	3.19	%
Subordinated debt, net		24,566	3.70	%		26,476	3.89	%		32,978	4.16	%
Total borrowed funds		124,905	2.73	%		97,565	2.28	%		90,920	2.40	%
Total Interest-bearing Liabilities		1,566,372	0.72	%		1,503,549	0.45	%		1,504,748	0.43	%
Demand deposits		557,116				557,007				522,930
Other liabilities		23,588				20,066				25,386
Total Liabilities		2,147,076				2,080,622				2,053,064
Stockholders' equity, excluding accumulated other comprehensive (loss) income		295,086				293,985				292,936
Accumulated other comprehensive (loss) income		(34,900)				(28,663)				9,911
Total Stockholders' Equity		260,186				265,322				302,847
Total Liabilities and Stockholders' Equity	$	2,407,262			$	2,345,944			$	2,355,911
Interest Rate Spread			3.46	%			3.47	%			3.46	%
Net Interest Income/Earning Assets			3.69	%			3.62	%			3.59	%

Total Deposits (Interest-bearing and Demand)	$	1,998,583			$	1,962,991			$	1,936,758

(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.

ANALYSIS OF AVERAGE DAILY BALANCES AND RATES

(Dollars in Thousands)


	9 Months				9 Months
	Ended		Rate of		Ended		Rate of
	9/30/2022		Return/		9/30/2021		Return/
	Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds%
EARNING ASSETS
Interest-bearing due from banks	$	55,154	0.81	%	$	157,231	0.20	%
Available-for-sale debt securities, at amortized cost:
Taxable		408,178	2.01	%		241,716	1.99	%
Tax-exempt		148,977	2.52	%		122,736	2.69	%
Total available-for-sale debt securities		557,155	2.15	%		364,452	2.23	%
Loans receivable:
Taxable		1,507,756	4.94	%		1,424,457	4.81	%
Paycheck Protection Program - 1st Draw		593	11.95	%		58,900	7.47	%
Paycheck Protection Program - 2nd Draw		10,294	10.99	%		58,173	3.67	%
Tax-exempt		85,492	2.81	%		69,502	3.15	%
Total loans receivable		1,604,135	4.86	%		1,611,032	4.79	%
Other earning assets		2,750	3.35	%		2,556	2.77	%
Total Earning Assets		2,219,194	4.08	%		2,135,271	4.01	%
Cash		22,527				24,564
Unrealized (loss) gain on securities		(28,068)				11,831
Allowance for loan losses		(14,406)				(12,143)
Bank-owned life insurance		30,857				30,301
Bank premises and equipment		21,494				20,860
Intangible assets		55,655				56,153
Other assets		52,610				43,694
Total Assets	$	2,359,863			$	2,310,531

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	431,344	0.31	%	$	389,349	0.24	%
Money market		448,377	0.38	%		428,985	0.28	%
Savings		255,433	0.10	%		224,050	0.10	%
Time deposits		281,673	0.74	%		339,558	0.71	%
Total interest-bearing deposits		1,416,827	0.38	%		1,381,942	0.34	%
Borrowed funds:
Short-term		24,306	1.66	%		7,648	0.38	%
Long-term - FHLB advances		32,509	1.79	%		46,863	0.94	%
Senior notes, net		14,725	3.24	%		7,255	3.23	%
Subordinated debt, net		27,966	4.06	%		25,539	4.96	%
Total borrowed funds		99,506	2.61	%		87,305	2.26	%
Total Interest-bearing Liabilities		1,516,333	0.53	%		1,469,247	0.46	%
Demand deposits		547,836				514,081
Other liabilities		22,565				25,729
Total Liabilities		2,086,734				2,009,057
Stockholders' equity, excluding accumulated other comprehensive (loss) income		295,019				292,017
Accumulated other comprehensive (loss) income		(21,890)				9,457
Total Stockholders' Equity		273,129				301,474
Total Liabilities and Stockholders' Equity	$	2,359,863			$	2,310,531
Interest Rate Spread			3.55	%			3.55	%
Net Interest Income/Earning Assets			3.72	%			3.70	%

Total Deposits (Interest-bearing and Demand)	$	1,964,663			$	1,896,023

(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.

COMPARISON OF NONINTEREST INCOME

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2022		2022		2021		2022		2021
Trust revenue	$	1,744	$	1,715	$	1,821	$	5,245	$	5,254
Brokerage and insurance revenue		696		566		560		1,784		1,392
Service charges on deposit accounts		1,105		1,322		1,249		3,662		3,337
Interchange revenue from debit card transactions		1,031		1,056		975		3,050		2,854
Net gains from sales of loans		131		220		797		733		2,786
Loan servicing fees, net		189		358		153		757		547
Increase in cash surrender value of life insurance		133		137		139		405		434
Other noninterest income		622		1,456		665		2,666		2,837
Total noninterest income, excluding realized gains on securities, net	$	5,651	$	6,830	$	6,359	$	18,302	$	19,441

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2022		2022		2021		2022		2021
Salaries and employee benefits	$	10,826	$	10,265	$	9,427	$	31,698	$	27,821
Net occupancy and equipment expense		1,498		1,308		1,217		4,217		3,740
Data processing and telecommunications expenses		1,719		1,720		1,475		5,062		4,342
Automated teller machine and interchange expense		397		347		357		1,128		1,049
Pennsylvania shares tax		487		488		482		1,463		1,463
Professional fees		521		480		538		1,490		1,683
Other noninterest expense		1,995		2,431		1,850		6,310		6,356
Total noninterest expense	$	17,443	$	17,039	$	15,346	$	51,368	$	46,454