EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	2ND		2ND
	QUARTER		QUARTER
	2023		2022
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	28,011	$	21,309	$	6,702	31.45	%
Interest Expense		7,649		1,684		5,965	354.22	%
Net Interest Income		20,362		19,625		737	3.76	%
Provision for Credit Losses		812		308		504	163.64	%
Net Interest Income After Provision for Credit Losses		19,550		19,317		233	1.21	%
Noninterest Income		6,635		6,830		(195)	(2.86)	%
Net Realized Losses on Available-for-sale Debt Securities		(1)		(1)		0	0.00	%
Noninterest Expense		18,722		17,039		1,683	9.88	%
Income Before Income Tax Provision		7,462		9,107		(1,645)	(18.06)	%
Income Tax Provision		1,419		1,618		(199)	(12.30)	%
Net Income	$	6,043	$	7,489	$	(1,446)	(19.31)	%
Net Income Attributable to Common Shares (1)	$	5,996	$	7,419	$	(1,423)	(19.18)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.39	$	0.48	$	(0.09)	(18.75)	%
Net Income - Diluted	$	0.39	$	0.48	$	(0.09)	(18.75)	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,231,505		15,441,564
Number of Shares Used in Computation - Diluted		15,231,505		15,444,573


	SIX MONTHS ENDED
	JUNE 30,
	2023		2022
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	54,150	$	43,082	$	11,068	25.69	%
Interest Expense		13,007		3,125		9,882	316.22	%
Net Interest Income		41,143		39,957		1,186	2.97	%
Provision for Credit Losses		460		1,199		(739)	(61.63)	%
Net Interest Income After Provision for Credit Losses		40,683		38,758		1,925	4.97	%
Noninterest Income		12,244		12,651		(407)	(3.22)	%
Net Realized Gains on Available-for-sale Debt Securities		6		1		5	500.00	%
Noninterest Expense		37,809		33,925		3,884	11.45	%
Income Before Income Tax Provision		15,124		17,485		(2,361)	(13.50)	%
Income Tax Provision		2,828		3,101		(273)	(8.80)	%
Net Income	$	12,296	$	14,384	$	(2,088)	(14.52)	%
Net Income Attributable to Common Shares (1)	$	12,197	$	14,254	$	(2,057)	(14.43)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.80	$	0.92	$	(0.12)	(13.04)	%
Net Income - Diluted	$	0.80	$	0.92	$	(0.12)	(13.04)	%
Dividends Per Share	$	0.56	$	0.56	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,320,101		15,542,959
Number of Shares Used in Computation - Diluted		15,320,366		15,546,319

(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)


	June 30,		June 30,
	2023		2022		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	51,762	$	69,187	$	(17,425)	(25.19)	%
Available-for-sale Debt Securities		445,695		526,837		(81,142)	(15.40)	%
Loans, Net		1,795,454		1,643,057		152,397	9.28	%
Bank-Owned Life Insurance		31,504		30,941		563	1.82	%
Bank Premises and Equipment, Net		20,970		21,829		(859)	(3.94)	%
Deferred Tax Asset, Net		20,687		16,331		4,356	26.67	%
Intangible Assets		55,178		55,602		(424)	(0.76)	%
Other Assets		49,530		46,934		2,596	5.53	%
TOTAL ASSETS	$	2,470,780	$	2,410,718	$	60,062	2.49	%

LIABILITIES
Deposits	$	2,010,118	$	1,964,270	$	45,848	2.33	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		146,694		126,833		19,861	15.66	%
Senior Notes, Net		14,798		14,733		65	0.44	%
Subordinated Debt, Net		24,661		24,553		108	0.44	%
Other Liabilities		26,392		21,710		4,682	21.57	%
TOTAL LIABILITIES		2,222,663		2,152,099		70,564	3.28	%

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive Loss		296,190		294,621		1,569	0.53	%
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized Losses on Available-for-sale Debt Securities		(48,536)		(36,307)		(12,229)	33.68	%
Defined Benefit Plans		463		305		158	51.80	%
TOTAL STOCKHOLDERS' EQUITY		248,117		258,619		(10,502)	(4.06)	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,470,780	$	2,410,718	$	60,062	2.49	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	FOR THE
	THREE MONTHS ENDED						%
	June 30,						INCREASE
	2023			2022			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	6,043		$	7,489		(19.31)	%
Return on Average Assets (Annualized)		0.98	%		1.28	%	(23.44)	%
Return on Average Equity (Annualized)		9.60	%		11.29	%	(14.97)	%

	AS OF OR FOR THE
	SIX MONTHS ENDED						%
	June 30,						INCREASE
	2023			2022			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	12,296		$	14,384		(14.52)	%
Return on Average Assets (Annualized)		1.01	%		1.23	%	(17.89)	%
Return on Average Equity (Annualized)		9.75	%		10.29	%	(5.25)	%

BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,470,780		$	2,410,718		2.49	%
Available-for-Sale Debt Securities		445,695			526,837		(15.40)	%
Loans, Net		1,795,454			1,643,057		9.28	%
Allowance for Credit Losses:
Allowance for Credit Losses on Loans		19,056			14,547		31.00	%
Allowance for Credit Losses on Off-Balance Sheet Exposures		1,154			610		89.18	%
Deposits		2,010,118			1,964,270		2.33	%

OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	318,267		$	336,681		(5.47)	%
Trust Assets Under Management		1,154,728			1,055,290		9.42	%

STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	0.80		$	0.92		(13.04)	%
Net Income - Diluted	$	0.80		$	0.92		(13.04)	%
Dividends	$	0.56		$	0.56		0.00	%
Common Book Value	$	16.25		$	16.69		(2.64)	%
Tangible Common Book Value (a)	$	12.64		$	13.10		(3.51)	%
Market Value (Last Trade)	$	19.30		$	24.17		(20.15)	%
Market Value / Common Book Value		118.77	%		144.82	%	(17.99)	%
Market Value / Tangible Common Book Value		152.69	%		184.50	%	(17.24)	%
Price Earnings Multiple (Annualized)		12.06			13.14		(8.22)	%
Dividend Yield (Annualized)		5.80	%		4.63	%	25.27	%
Common Shares Outstanding, End of Period		15,268,096			15,499,214		(1.49)	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	AS OF OR FOR THE
	THREE MONTHS ENDED						%
	JUNE 30,						INCREASE
	2023			2022			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (a)		7.99	%		8.62	%	(7.31)	%
Nonperforming Assets / Total Assets		0.58	%		0.62	%	(6.45)	%
Allowance for Credit Losses / Total Loans		1.05	%		0.88	%	19.32	%
Total Risk Based Capital Ratio (b)		15.87	%		16.15	%	(1.73)	%
Tier 1 Risk Based Capital Ratio (b)		13.38	%		13.85	%	(3.39)	%
Common Equity Tier 1 Risk Based Capital Ratio (b)		13.38	%		13.85	%	(3.39)	%
Leverage Ratio (b)		9.82	%		10.31	%	(4.75)	%

AVERAGE BALANCES
Average Assets	$	2,443,693		$	2,335,771		4.62	%
Average Equity	$	252,215		$	279,708		(9.83)	%

EFFICIENCY RATIO (c)
Net Interest Income on a Fully Taxable-Equivalent
Basis (c)	$	41,651		$	40,571		2.66	%
Noninterest Income		12,244			12,651		(3.22)	%
Total (1)	$	53,895		$	53,222		1.26	%
Noninterest Expense (2)	$	37,809		$	33,925		11.45	%
Efficiency Ratio = (2)/(1)		70.15	%		63.74	%	10.06	%

(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 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	$	2,470,780	$	2,410,718
Less: Intangible Assets, Primarily Goodwill		(55,178)		(55,602)
Tangible Assets	$	2,415,602	$	2,355,116
Total Stockholders' Equity	$	248,117	$	258,619
Less: Intangible Assets, Primarily Goodwill		(55,178)		(55,602)
Tangible Common Equity (3)	$	192,939	$	203,017

Common Shares Outstanding, End of Period (4)		15,268,096		15,499,214
Tangible Common Book Value per Share = (3)/(4)	$	12.64	$	13.10

(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 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 :
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
Interest income	$	28,011	$	26,139	$	25,855	$	23,710	$	21,309
Interest expense		7,649		5,358		3,563		2,831		1,684
Net interest income		20,362		20,781		22,292		20,879		19,625
Provision (credit) for credit losses		812		(352)		2,262		3,794		308
Net interest income after provision (credit) for credit losses		19,550		21,133		20,030		17,085		19,317
Noninterest income		6,635		5,609		6,110		5,651		6,830
Net realized (losses) gains on securities		(1)		7		(1)		20		(1)
Noninterest expense		18,722		19,087		16,587		17,443		17,039
Income before income tax provision		7,462		7,662		9,552		5,313		9,107
Income tax provision		1,419		1,409		1,773		858		1,618
Net income	$	6,043	$	6,253	$	7,779	$	4,455	$	7,489
Net income attributable to common shares	$	5,996	$	6,201	$	7,711	$	4,416	$	7,419
Basic earnings per common share	$	0.39	$	0.40	$	0.50	$	0.29	$	0.48
Diluted earnings per common share	$	0.39	$	0.40	$	0.50	$	0.29	$	0.48

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)


	As of:
	June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
	2023		2023		2022		2022		2022
ASSETS
Cash & Due from Banks	$	51,762	$	52,212	$	55,048	$	64,044	$	69,187
Available-for-Sale Debt Securities		445,695		472,814		498,033		487,980		526,837
Loans, Net		1,795,454		1,726,793		1,723,425		1,674,076		1,643,057
Bank-Owned Life Insurance		31,504		31,352		31,214		31,075		30,941
Bank Premises and Equipment, Net		20,970		21,277		21,574		21,881		21,829
Deferred Tax Asset, Net		20,687		18,914		20,884		22,327		16,331
Intangible Assets		55,178		55,280		55,382		55,492		55,602
Other Assets		49,530		51,230		48,747		43,305		46,934
TOTAL ASSETS	$	2,470,780	$	2,429,872	$	2,454,307	$	2,400,180	$	2,410,718

LIABILITIES
Deposits (1)	$	2,010,118	$	1,916,040	$	1,997,593	$	2,039,595	$	1,964,270
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		146,694		192,097		142,409		57,920		126,833
Senior Notes, Net		14,798		14,781		14,765		14,749		14,733
Subordinated Debt, Net		24,661		24,634		24,607		24,580		24,553
Other Liabilities		26,392		26,752		25,608		24,547		21,710
TOTAL LIABILITIES		2,222,663		2,174,304		2,204,982		2,161,391		2,152,099

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss		296,190		298,365		299,203		295,258		294,621
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized Losses on Available-for-sale Debt Securities		(48,536)		(43,271)		(50,370)		(56,766)		(36,307)
Defined Benefit Plans		463		474		492		297		305
TOTAL STOCKHOLDERS' EQUITY		248,117		255,568		249,325		238,789		258,619
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,470,780	$	2,429,872	$	2,454,307	$	2,400,180	$	2,410,718

(1) Brokered Deposits (Included in Total Deposits)	$	70,653	$	15,117	$	20,983	$	32,375	$	35,974

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)


	June 30, 2023				March 31, 2023				December 31, 2022				June 30, 2022
	Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	33,931	$	30,743	$	33,924	$	31,163	$	35,166	$	31,836	$	38,151	$	35,774
Obligations of U.S. Government agencies		22,899		20,552		25,479		23,348		25,938		23,430		24,454		22,785
Bank holding company debt securities		28,948		23,325		28,947		24,723		28,945		25,386		28,942		27,415
Obligations of states and political subdivisions:
Tax-exempt		125,247		113,170		128,285		117,812		146,149		132,623		152,063		139,400
Taxable		65,715		55,702		67,076		57,572		68,488		56,812		72,204		63,898
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		105,027		92,795		109,028		97,807		112,782		99,941		114,367		106,043
Residential collateralized mortgage obligations		40,444		35,897		42,296		38,117		44,868		40,296		47,295		44,761
Commercial mortgage-backed securities		76,780		65,517		84,449		74,195		91,388		79,686		95,318		86,761
Private label commercial mortgage-backed securities		8,141		7,994		8,105		8,077		8,070		8,023		0		0
Total Available-for-Sale Debt Securities	$	507,132	$	445,695	$	527,589	$	472,814	$	561,794	$	498,033	$	572,794	$	526,837

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)


	June 30,		March 31,		December 31,		June 30,
	2023		2023		2022		2022
Commercial real estate - nonowner occupied
Nonowner occupied	$	505,519	$	457,814	$	454,386	$	424,096
Multi-family (5 or more) residential		61,004		58,111		55,406		52,859
1-4 Family - commercial purpose		167,260		166,773		165,805		169,638
Total commercial real estate - nonowner occupied		733,783		682,698		675,597		646,593
Commercial real estate - owner occupied		227,801		221,766		205,910		212,443
All other commercial loans:
Commercial and industrial		80,270		83,420		95,368		104,007
Commercial lines of credit		122,607		119,109		141,444		130,193
Political subdivisions		84,456		85,555		86,663		81,437
Commercial construction and land		80,391		70,612		60,892		47,112
Other commercial loans		24,960		26,106		25,710		26,653
Total all other commercial loans		392,684		384,802		410,077		389,402
Residential mortgage loans:
1-4 Family - residential		378,698		372,241		363,005		332,089
1-4 Family residential construction		25,535		29,479		30,577		25,938
Total residential mortgage		404,233		401,720		393,582		358,027
Consumer loans:
Consumer lines of credit (including HELCs)		36,608		35,245		36,650		33,740
All other consumer		19,401		18,908		18,224		17,399
Total consumer		56,009		54,153		54,874		51,139
Total		1,814,510		1,745,139		1,740,040		1,657,604
Less: allowance for credit losses on loans		(19,056)		(18,346)		(16,615)		(14,547)
Loans, net	$	1,795,454	$	1,726,793	$	1,723,425	$	1,643,057

ADJUSTMENTS TO GROSS AMORTIZED COST OF LOANS

(In Thousands)


	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2023		2023		2022		2023		2022
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(968)	$	(916)	$	(885)	$	(916)	$	(637)
Amortization recognized in interest income		(32)		(52)		19		(84)		(229)
Adjustments to gross amortized cost of loans at end of period	$	(1,000)	$	(968)	$	(866)	$	(1,000)	$	(866)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(1,642)	$	(1,840)	$	(2,782)	$	(1,840)	$	(3,335)
Accretion recognized in interest income		196		198		379		394		932
Adjustments to gross amortized cost of loans at end of period	$	(1,446)	$	(1,642)	$	(2,403)	$	(1,446)	$	(2,403)

PAST DUE LOANS AND NONPERFORMING ASSETS

(Dollars In Thousands)


	June 30,			March 31,			December 31,			June 30,
	2023			2023			2022			2022
Loans individually evaluated with a valuation allowance	$	5,785		$	5,802		$	3,460		$	3,392
Loans individually evaluated without a valuation allowance		3,314			3,507			14,871			1,376
Purchased credit impaired loans		0			0			1,027			3,879
Total individually evaluated loans	$	9,099		$	9,309		$	19,358		$	8,647

Total loans past due 30-89 days and still accruing	$	4,709		$	5,493		$	7,079		$	5,082

Nonperforming assets:
Purchased credit impaired loans	$	0		$	0		$	1,027		$	3,879
Other nonaccrual loans		12,827			12,876			22,058			7,763
Total nonaccrual loans		12,827			12,876			23,085			11,642
Total loans past due 90 days or more and still accruing		1,164			1,216			2,237			2,694
Total nonperforming loans		13,991			14,092			25,322			14,336
Foreclosed assets held for sale (real estate)		459			459			275			505
Total nonperforming assets	$	14,450		$	14,551		$	25,597		$	14,841

Total nonperforming loans as a % of total loans		0.77	%		0.81	%		1.46	%		0.86	%
Total nonperforming assets as a % of assets		0.58	%		0.60	%		1.04	%		0.62	%
Allowance for credit losses as a % of total loans		1.05	%		1.05	%		0.95	%		0.88	%

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LOANS

(In Thousands)


	3 Months		3 Months		6 Months		6 Months
	Ended		Ended		Ended		Ended
	June 30,		March 31,		June 30,		June 30,
	2023		2023		2023		2022
Balance, beginning of period	$	18,346	$	16,615	$	16,615	$	13,537
Adoption of ASU 2016-13 (CECL)		0		2,104		2,104		0
Charge-offs		(134)		(67)		(201)		(221)
Recoveries		8		6		14		32
Net charge-offs		(126)		(61)		(187)		(189)
Provision (credit) for credit losses on loans		836		(312)		524		1,199
Balance, end of period	$	19,056	$	18,346	$	19,056	$	14,547

ANALYSIS OF THE PROVISION FOR CREDIT LOSSES

(In Thousands)


	3 Months		3 Months		6 Months
	Ended		Ended		Ended
	June 30,		March 31,		June 30,
	2023		2023		2023
Provision (credit) for credit losses:
Loans receivable	$	836	$	(312)	$	524
Off-balance sheet exposures (1)		(24)		(40)		(64)
Total provision (credit) for credit losses	$	812	$	(352)	$	460

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

COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)


	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2023		2023		2022		2023		2022
INTEREST INCOME
Interest-bearing due from banks	$	309	$	278	$	92	$	587	$	159
Available-for-sale debt securities:
Taxable		2,152		2,211		2,036		4,363		4,005
Tax-exempt		713		767		959		1,480		1,864
Total available-for-sale debt securities		2,865		2,978		2,995		5,843		5,869
Loans receivable:
Taxable		24,360		22,428		17,721		46,788		35,695
Paycheck Protection Program		2		3		206		5		781
Tax-exempt		700		713		588		1,413		1,161
Total loans receivable		25,062		23,144		18,515		48,206		37,637
Other earning assets		14		8		19		22		31
Total Interest Income		28,250		26,408		21,621		54,658		43,696

INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		1,512		987		308		2,499		502
Money market		1,112		873		369		1,985		631
Savings		63		63		64		126		125
Time deposits		2,412		1,307		389		3,719		782
Total interest-bearing deposits		5,099		3,230		1,130		8,329		2,040
Borrowed funds:
Short-term		1,144		1,097		122		2,241		123
Long-term - FHLB advances		1,056		681		55		1,737		104
Senior notes, net		119		120		120		239		238
Subordinated debt, net		231		230		257		461		620
Total borrowed funds		2,550		2,128		554		4,678		1,085
Total Interest Expense		7,649		5,358		1,684		13,007		3,125

Net Interest Income	$	20,601	$	21,050	$	19,937	$	41,651	$	40,571

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						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2023		2022		2022		2023		2022
Net Interest Income Under U.S. GAAP	$	20,362	$	20,781	$	19,625	$	41,143	$	39,957
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		103		127		191		230		374
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		136		142		121		278		240
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	20,601	$	21,050	$	19,937	$	41,651	$	40,571

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
	6/30/2023		Return/		3/31/2023		Return/		6/30/2022		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	29,861	4.15	%	$	31,637	3.56	%	$	47,428	0.78	%
Available-for-sale debt securities, at amortized cost:
Taxable		395,725	2.18	%		410,110	2.19	%		419,824	1.95	%
Tax-exempt		126,839	2.25	%		131,392	2.37	%		151,753	2.53	%
Total available-for-sale debt securities		522,564	2.20	%		541,502	2.23	%		571,577	2.10	%
Loans receivable:
Taxable		1,697,592	5.76	%		1,633,850	5.57	%		1,494,165	4.76	%
Paycheck Protection Program		148	5.42	%		162	7.51	%		9,272	8.91	%
Tax-exempt		90,111	3.12	%		91,851	3.15	%		85,447	2.76	%
Total loans receivable		1,787,851	5.62	%		1,725,863	5.44	%		1,588,884	4.67	%
Other earning assets		1,325	4.24	%		1,200	2.70	%		2,321	3.28	%
Total Earning Assets		2,341,601	4.84	%		2,300,202	4.66	%		2,210,210	3.92	%
Cash		23,084				22,276				23,114
Unrealized loss on securities		(56,564)				(60,055)				(36,675)
Allowance for credit losses		(18,795)				(17,053)				(14,509)
Bank-owned life insurance		31,410				31,267				30,857
Bank premises and equipment		21,140				21,518				21,556
Intangible assets		55,228				55,331				55,656
Other assets		69,213				67,333				55,735
Total Assets	$	2,466,317			$	2,420,819			$	2,345,944

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	463,300	1.31	%	$	457,277	0.88	%	$	431,997	0.29	%
Money market		328,581	1.36	%		364,646	0.97	%		449,656	0.33	%
Savings		247,434	0.10	%		257,047	0.10	%		255,578	0.10	%
Time deposits		375,557	2.58	%		312,497	1.70	%		268,753	0.58	%
Total interest-bearing deposits		1,414,872	1.45	%		1,391,467	0.94	%		1,405,984	0.32	%
Borrowed funds:
Short-term		87,479	5.25	%		91,767	4.85	%		36,848	1.33	%
Long-term - FHLB advances		110,982	3.82	%		80,648	3.42	%		19,516	1.13	%
Senior notes, net		14,789	3.23	%		14,773	3.29	%		14,725	3.27	%
Subordinated debt, net		24,648	3.76	%		24,620	3.79	%		26,476	3.89	%
Total borrowed funds		237,898	4.30	%		211,808	4.07	%		97,565	2.28	%
Total Interest-bearing Liabilities		1,652,770	1.86	%		1,603,275	1.36	%		1,503,549	0.45	%
Demand deposits		533,533				539,659				557,007
Other liabilities		28,217				25,247				20,066
Total Liabilities		2,214,520				2,168,181				2,080,622
Stockholders' equity, excluding accumulated other comprehensive loss		296,015				299,599				293,985
Accumulated other comprehensive loss		(44,218)				(46,961)				(28,663)
Total Stockholders' Equity		251,797				252,638				265,322
Total Liabilities and Stockholders' Equity	$	2,466,317			$	2,420,819			$	2,345,944
Interest Rate Spread			2.98	%			3.30	%			3.47	%
Net Interest Income/Earning Assets			3.53	%			3.71	%			3.62	%

Total Deposits (Interest-bearing and Demand)	$	1,948,405			$	1,931,126			$	1,962,991

(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)


	6 Months				6 Months
	Ended		Rate of		Ended		Rate of
	6/30/2023		Return/		6/30/2022		Return/
	Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds%
EARNING ASSETS
Interest-bearing due from banks	$	30,744	3.85	%	$	65,670	0.49	%
Available-for-sale debt securities, at amortized cost:
Taxable		402,878	2.18	%		405,144	1.99	%
Tax-exempt		129,103	2.31	%		148,064	2.54	%
Total available-for-sale debt securities		531,981	2.21	%		553,208	2.14	%
Loans receivable:
Taxable		1,665,897	5.66	%		1,469,894	4.90	%
Paycheck Protection Program		155	6.51	%		14,034	11.22	%
Tax-exempt		90,976	3.13	%		84,558	2.77	%
Total loans receivable		1,757,028	5.53	%		1,568,486	4.84	%
Other earning assets		1,263	3.51	%		2,153	2.90	%
Total Earning Assets		2,321,016	4.75	%		2,189,517	4.02	%
Cash		22,682				21,915
Unrealized loss on securities		(58,300)				(19,686)
Allowance for loan losses		(17,929)				(14,148)
Bank-owned life insurance		31,339				30,789
Bank premises and equipment		21,328				21,301
Intangible assets		55,279				55,710
Other assets		68,278				50,373
Total Assets	$	2,443,693			$	2,335,771

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	460,305	1.09	%	$	425,599	0.24	%
Money market		346,514	1.16	%		453,260	0.28	%
Savings		252,214	0.10	%		252,389	0.10	%
Time deposits		344,201	2.18	%		273,055	0.58	%
Total interest-bearing deposits		1,403,234	1.20	%		1,404,303	0.29	%
Borrowed funds:
Short-term		89,611	5.04	%		19,394	1.28	%
Long-term - FHLB advances		95,899	3.65	%		22,791	0.92	%
Senior notes, net		14,781	3.26	%		14,717	3.26	%
Subordinated debt, net		24,634	3.77	%		29,694	4.21	%
Total borrowed funds		224,925	4.19	%		86,596	2.53	%
Total Interest-bearing Liabilities		1,628,159	1.61	%		1,490,899	0.42	%
Demand deposits		536,579				543,119
Other liabilities		26,740				22,045
Total Liabilities		2,191,478				2,056,063
Stockholders' equity, excluding accumulated other comprehensive loss		297,797				294,985
Accumulated other comprehensive loss		(45,582)				(15,277)
Total Stockholders' Equity		252,215				279,708
Total Liabilities and Stockholders' Equity	$	2,443,693			$	2,335,771
Interest Rate Spread			3.14	%			3.60	%
Net Interest Income/Earning Assets			3.62	%			3.74	%

Total Deposits (Interest-bearing and Demand)	$	1,939,813			$	1,947,422

(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						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2023		2023		2022		2023		2022
Trust revenue	$	1,804	$	1,777	$	1,715	$	3,581	$	3,501
Brokerage and insurance revenue		365		430		566		795		1,088
Service charges on deposit accounts		1,388		1,290		1,322		2,678		2,557
Interchange revenue from debit card transactions		1,010		1,007		1,056		2,017		2,019
Net gains from sales of loans		139		74		220		213		602
Loan servicing fees, net		190		122		358		312		568
Increase in cash surrender value of life insurance		152		138		137		290		272
Other noninterest income		1,587		771		1,456		2,358		2,044
Total noninterest income, excluding realized gains (losses) on securities, net	$	6,635	$	5,609	$	6,830	$	12,244	$	12,651

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)


	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2023		2023		2022		2023		2022
Salaries and employee benefits	$	10,777	$	11,427	$	10,265	$	22,204	$	20,872
Net occupancy and equipment expense		1,323		1,402		1,308		2,725		2,719
Data processing and telecommunications expenses		1,900		1,936		1,720		3,836		3,343
Automated teller machine and interchange expense		395		475		347		870		731
Pennsylvania shares tax		404		403		488		807		976
Professional fees		564		937		480		1,501		969
Other noninterest expense		3,359		2,507		2,431		5,866		4,315
Total noninterest expense	$	18,722	$	19,087	$	17,039	$	37,809	$	33,925

NONOWNER OCCUPIED COMMERCIAL REAL ESTATE

(In Thousands)


Loan Type	June 30,		% of Nonowner		% of
	2023		Occupied CRE		Total Loans
Industrial	$	104,067	20.6	%	5.7	%
Office		95,644	18.9	%	5.3	%
Retail		91,635	18.1	%	5.1	%
Hotels		73,998	14.6	%	4.1	%
Mixed Use		62,940	12.5	%	3.5	%
Other		77,235	15.3	%	4.3	%
Total Nonowner Occupied CRE Loans	$	505,519
Total Gross Loans	$	1,814,510

LIQUIDITY INFORMATION

(In Thousands)


Available Credit Facilities	Outstanding						Available						Total Credit
	June 30,		March 31,		Dec. 31,		June 30,		March 31,		Dec. 31,		June 30,		March 31,		Dec. 31,
	2023		2023		2022		2023		2023		2022		2023		2023		2022
Federal Home Loan Bank of Pittsburgh	$	157,428	$	201,357	$	150,099	$	725,417	$	655,577	$	689,279	$	882,845	$	856,934	$	839,378
Federal Reserve Bank Discount Window		0		0		0		21,903		22,340		23,107		21,903		22,340		23,107
Other correspondent banks		0		0		0		95,000		95,000		95,000		95,000		95,000		95,000
Total credit facilities	$	157,428	$	201,357	$	150,099	$	842,320	$	772,917	$	807,386	$	999,748	$	974,274	$	957,485


Uninsured Deposits Information	June 30,			March 31,			December 31,
	2023			2023			2022
Total Deposits - C&N Bank	$	2,025,471		$	1,934,686		$	2,016,666

Estimated Total Uninsured Deposits	$	605,801		$	613,875		$	689,435
Portion of Uninsured Deposits that are
Collateralized		172,976			189,239			205,886
Uninsured and Uncollateralized Deposits	$	432,825		$	424,636		$	483,549

Uninsured and Uncollateralized Deposits as
a % of Total Deposits		21.4	%		21.9	%		24.0	%

Available Funding from Credit Facilities	$	842,320		$	772,917		$	807,386
Fair Value of Available-for-sale Debt
Securities in Excess of Pledging Obligations		257,537			269,763			272,475
Highly Liquid Available Funding	$	1,099,857		$	1,042,680		$	1,079,861

Highly Liquid Available Funding as a % of
Uninsured Deposits		181.6	%		169.9	%		156.6	%

Highly Liquid Available Funding as a % of
Uninsured and Uncollateralized Deposits		254.1	%		245.5	%		223.3	%