EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	3RD		3RD
	QUARTER		QUARTER
	2023		2022
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	29,118	$	23,710	$	5,408	22.81	%
Interest Expense		9,455		2,831		6,624	233.98	%
Net Interest Income		19,663		20,879		(1,216)	(5.82)	%
(Credit) Provision for Credit Losses		(1,225)		3,794		(5,019)	(132.29)	%
Net Interest Income After (Credit) Provision for Credit Losses		20,888		17,085		3,803	22.26	%
Noninterest Income		6,489		5,651		838	14.83	%
Net Realized Gains on Available-for-sale Debt Securities		—		20		(20)	(100.00)	%
Noninterest Expense		17,940		17,443		497	2.85	%
Income Before Income Tax Provision		9,437		5,313		4,124	77.62	%
Income Tax Provision		1,846		858		988	115.15	%
Net Income	$	7,591	$	4,455	$	3,136	70.39	%
Net Income Attributable to Common Shares (1)	$	7,534	$	4,416	$	3,118	70.61	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.50	$	0.29	$	0.21	72.41	%
Net Income - Diluted	$	0.50	$	0.29	$	0.21	72.41	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,154,797		15,364,075
Number of Shares Used in Computation - Diluted		15,154,797		15,367,189


	NINE MONTHS ENDED
	SEPTEMBER 30,
	2023		2022
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	83,268	$	66,792	$	16,476	24.67	%
Interest Expense		22,462		5,956		16,506	277.13	%
Net Interest Income		60,806		60,836		(30)	(0.05)	%
(Credit) Provision for Credit Losses		(765)		4,993		(5,758)	(115.32)	%
Net Interest Income After (Credit) Provision for Credit Losses		61,571		55,843		5,728	10.26	%
Noninterest Income		18,733		18,302		431	2.35	%
Net Realized Gains on Available-for-sale Debt Securities		6		21		(15)	(71.43)	%
Noninterest Expense		55,749		51,368		4,381	8.53	%
Income Before Income Tax Provision		24,561		22,798		1,763	7.73	%
Income Tax Provision		4,674		3,959		715	18.06	%
Net Income	$	19,887	$	18,839	$	1,048	5.56	%
Net Income Attributable to Common Shares (1)	$	19,731	$	18,670	$	1,061	5.68	%
PER COMMON SHARE DATA:
Net Income - Basic	$	1.29	$	1.21	$	0.08	6.61	%
Net Income - Diluted	$	1.29	$	1.21	$	0.08	6.61	%
Dividends Per Share	$	0.84	$	0.84	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,263,391		15,482,672
Number of Shares Used in Computation - Diluted		15,264,395		15,485,948

(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,
	2023		2022		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	52,658	$	64,044	$	(11,386)	(17.78)	%
Available-for-sale Debt Securities		429,138		487,980		(58,842)	(12.06)	%
Loans, Net		1,812,585		1,674,076		138,509	8.27	%
Bank-Owned Life Insurance		31,557		31,074		483	1.55	%
Bank Premises and Equipment, Net		21,267		21,881		(614)	(2.81)	%
Deferred Tax Asset, Net		23,731		22,327		1,404	6.29	%
Intangible Assets		55,076		55,492		(416)	(0.75)	%
Other Assets		57,937		43,306		14,631	33.79	%
TOTAL ASSETS	$	2,483,949	$	2,400,180	$	83,769	3.49	%

LIABILITIES
Deposits	$	2,024,997	$	2,039,595	$	(14,598)	(0.72)	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		148,529		57,920		90,609	156.44	%
Senior Notes, Net		14,814		14,749		65	0.44	%
Subordinated Debt, Net		24,689		24,580		109	0.44	%
Other Liabilities		30,715		24,547		6,168	25.13	%
TOTAL LIABILITIES		2,243,744		2,161,391		82,353	3.81	%

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive Loss		300,031		295,258		4,773	1.62	%
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized Losses on Available-for-sale Debt Securities		(60,278)		(56,766)		(3,512)	6.19	%
Defined Benefit Plans		452		297		155	52.19	%
TOTAL STOCKHOLDERS' EQUITY		240,205		238,789		1,416	0.59	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,483,949	$	2,400,180	$	83,769	3.49	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	FOR THE
	THREE MONTHS ENDED						%
	September 30,						INCREASE
	2023			2022			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	7,591		$	4,455		70.39	%
Return on Average Assets (Annualized)		1.23	%		0.74	%	66.22	%
Return on Average Equity (Annualized)		12.28	%		6.85	%	79.27	%

	AS OF OR FOR THE
	NINE MONTHS ENDED						%
	September 30,						INCREASE
	2023			2022			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	19,887		$	18,839		5.56	%
Return on Average Assets (Annualized)		1.08	%		1.06	%	1.89	%
Return on Average Equity (Annualized)		10.58	%		9.20	%	15.00	%

BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,483,949		$	2,400,180		3.49	%
Available-for-Sale Debt Securities		429,138			487,980		(12.06)	%
Loans, Net		1,812,585			1,647,076		10.05	%
Allowance for Credit Losses:
Allowance for Credit Losses on Loans		18,085			16,170		11.84	%
Allowance for Credit Losses on Off-Balance Sheet Exposures		900			500		80.00	%
Deposits		2,024,997			2,039,595		(0.72)	%

OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	318,526		$	331,495		(3.91)	%
Trust Assets Under Management		1,128,600			1,003,785		12.43	%

STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.29		$	1.21		6.61	%
Net Income - Diluted	$	1.29		$	1.21		6.61	%
Dividends	$	0.84		$	0.84		0.00	%
Common Book Value	$	15.72		$	15.41		2.01	%
Tangible Common Book Value (a)	$	12.12		$	11.83		2.45	%
Market Value (Last Trade)	$	17.55		$	24.18		(27.42)	%
Market Value / Common Book Value		111.64	%		156.91	%	(28.85)	%
Market Value / Tangible Common Book Value		144.80	%		204.40	%	(29.16)	%
Price Earnings Multiple (Annualized)		10.20			15.02		(32.09)	%
Dividend Yield (Annualized)		6.38	%		4.63	%	37.80	%
Common Shares Outstanding, End of Period		15,275,686			15,500,416		(1.45)	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	AS OF OR FOR THE
	NINE MONTHS ENDED						%
	SEPTEMBER 30,						INCREASE
	2023			2022			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (a)		7.62	%		7.82	%	(2.56)	%
Nonperforming Assets / Total Assets		0.70	%		0.87	%	(19.54)	%
Allowance for Credit Losses / Total Loans		0.99	%		0.96	%	3.13	%
Total Risk Based Capital Ratio (b)		15.83	%		15.80	%	0.19	%
Tier 1 Risk Based Capital Ratio (b)		13.44	%		13.48	%	(0.30)	%
Common Equity Tier 1 Risk Based Capital Ratio (b)		13.44	%		13.48	%	(0.30)	%
Leverage Ratio (b)		9.91	%		10.04	%	(1.29)	%

AVERAGE BALANCES
Average Assets	$	2,454,599		$	2,359,863		4.01	%
Average Equity	$	250,518		$	273,129		(8.28)	%

EFFICIENCY RATIO (c)
Net Interest Income on a Fully Taxable-Equivalent
Basis (c)	$	61,526		$	61,759		(0.38)	%
Noninterest Income		18,733			18,302		2.35	%
Total (1)	$	80,259		$	80,061		0.25	%
Noninterest Expense (2)	$	55,749		$	51,368		8.53	%
Efficiency Ratio = (2)/(1)		69.46	%		64.16	%	8.26	%

(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	$	2,483,949	$	2,400,180
Less: Intangible Assets, Primarily Goodwill		(55,076)		(55,492)
Tangible Assets	$	2,428,873	$	2,344,688
Total Stockholders' Equity	$	240,205	$	238,789
Less: Intangible Assets, Primarily Goodwill		(55,076)		(55,492)
Tangible Common Equity (3)	$	185,129	$	183,297

Common Shares Outstanding, End of Period (4)		15,275,686		15,500,416
Tangible Common Book Value per Share = (3)/(4)	$	12.12	$	11.83

(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 :
	September 30,		June 30,		March 31,		December 31,		September 30,
	2023		2023		2023		2022		2022
Interest income	$	29,118	$	28,011	$	26,139	$	25,855	$	23,710
Interest expense		9,455		7,649		5,358		3,563		2,831
Net interest income		19,663		20,362		20,781		22,292		20,879
(Credit) provision for credit losses		(1,225)		812		(352)		2,262		3,794
Net interest income after (credit) provision for credit losses		20,888		19,550		21,133		20,030		17,085
Noninterest income		6,489		6,635		5,609		6,110		5,651
Net realized (losses) gains on securities		—		(1)		7		(1)		20
Noninterest expense		17,940		18,722		19,087		16,587		17,443
Income before income tax provision		9,437		7,462		7,662		9,552		5,313
Income tax provision		1,846		1,419		1,409		1,773		858
Net income	$	7,591	$	6,043	$	6,253	$	7,779	$	4,455
Net income attributable to common shares	$	7,534	$	5,996	$	6,201	$	7,711	$	4,416
Basic earnings per common share	$	0.50	$	0.39	$	0.40	$	0.50	$	0.29
Diluted earnings per common share	$	0.50	$	0.39	$	0.40	$	0.50	$	0.29

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)


	As of:
	Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,
	2023		2023		2023		2022		2022
ASSETS
Cash & Due from Banks	$	52,658	$	51,762	$	52,212	$	55,048	$	64,044
Available-for-Sale Debt Securities		429,138		445,695		472,814		498,033		487,980
Loans, Net		1,812,585		1,795,454		1,726,793		1,723,425		1,674,076
Bank-Owned Life Insurance		31,557		31,504		31,352		31,214		31,074
Bank Premises and Equipment, Net		21,267		20,970		21,277		21,574		21,881
Deferred Tax Asset, Net		23,731		20,687		18,914		20,884		22,327
Intangible Assets		55,076		55,178		55,280		55,382		55,492
Other Assets		57,937		49,530		51,230		48,747		43,306
TOTAL ASSETS	$	2,483,949	$	2,470,780	$	2,429,872	$	2,454,307	$	2,400,180

LIABILITIES
Deposits (1)	$	2,024,997	$	2,010,118	$	1,916,040	$	1,997,593	$	2,039,595
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		148,529		146,694		192,097		142,409		57,920
Senior Notes, Net		14,814		14,798		14,781		14,765		14,749
Subordinated Debt, Net		24,689		24,661		24,634		24,607		24,580
Other Liabilities		30,715		26,392		26,752		25,608		24,547
TOTAL LIABILITIES		2,243,744		2,222,663		2,174,304		2,204,982		2,161,391

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss		300,031		296,190		298,365		299,203		295,258
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized Losses on Available-for-sale Debt Securities		(60,278)		(48,536)		(43,271)		(50,370)		(56,766)
Defined Benefit Plans		452		463		474		492		297
TOTAL STOCKHOLDERS' EQUITY		240,205		248,117		255,568		249,325		238,789
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,483,949	$	2,470,780	$	2,429,872	$	2,454,307	$	2,400,180

(1) Brokered Deposits (Included in Total Deposits)	$	62,512	$	70,653	$	15,117	$	20,983	$	32,375

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)


	September 30, 2023				June 30, 2023				December 31, 2022				September 30, 2022
	Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	33,938	$	30,557	$	33,931	$	30,743	$	35,166	$	31,836	$	35,155	$	31,599
Obligations of U.S. Government agencies		21,372		18,796		22,899		20,552		25,938		23,430		23,939		21,389
Bank holding company debt securities		28,950		22,311		28,948		23,325		28,945		25,386		28,944		25,432
Obligations of states and political subdivisions:
Tax-exempt		123,598		104,453		125,247		113,170		146,149		132,623		146,847		126,710
Taxable		65,408		53,457		65,715		55,702		68,488		56,812		69,902		58,317
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		109,102		94,469		105,027		92,795		112,782		99,941		116,833		102,739
Residential collateralized mortgage obligations		38,267		33,397		40,444		35,897		44,868		40,296		44,075		39,632
Commercial mortgage-backed securities		76,627		63,672		76,780		65,517		91,388		79,686		89,349		77,383
Private label commercial mortgage-backed securities		8,178		8,026		8,141		7,994		8,070		8,023		4,793		4,779
Total Available-for-Sale Debt Securities	$	505,440	$	429,138	$	507,132	$	445,695	$	561,794	$	498,033	$	559,837	$	487,980

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)


	September 30,		June 30,		December 31,		September 30,
	2023		2023		2022		2022
Commercial real estate - non-owner occupied
Non-owner occupied	$	503,434	$	505,519	$	454,386	$	425,061
Multi-family (5 or more) residential		61,061		61,004		55,406		58,498
1-4 Family - commercial purpose		172,792		167,260		165,805		165,162
Total commercial real estate - non-owner occupied		737,287		733,783		675,597		648,721
Commercial real estate - owner occupied		231,112		227,801		205,910		212,081
All other commercial loans:
Commercial and industrial		80,960		80,270		95,368		99,800
Commercial lines of credit		122,189		122,607		141,444		131,935
Political subdivisions		80,415		84,456		86,663		78,992
Commercial construction and land		91,014		80,391		60,892		65,020
Other commercial loans		21,125		24,960		25,710		25,948
Total all other commercial loans		395,703		392,684		410,077		401,695
Residential mortgage loans:
1-4 Family - residential		385,777		378,698		363,005		355,321
1-4 Family residential construction		24,236		25,535		30,577		19,632
Total residential mortgage		410,013		404,233		393,582		374,953
Consumer loans:
Consumer lines of credit (including HELCs)		37,736		36,608		36,650		36,051
All other consumer		18,819		19,401		18,224		16,745
Total consumer		56,555		56,009		54,874		52,796
Total		1,830,670		1,814,510		1,740,040		1,690,246
Less: allowance for credit losses on loans		(18,085)		(19,056)		(16,615)		(16,170)
Loans, net	$	1,812,585	$	1,795,454	$	1,723,425	$	1,674,076

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,
	2023		2023		2022		2023		2022
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(1,000)	$	(968)	$	(866)	$	(916)	$	(637)
Amortization recognized in interest income		(16)		(32)		5		(100)		(224)
Adjustments to gross amortized cost of loans at end of period	$	(1,016)	$	(1,000)	$	(861)	$	(1,016)	$	(861)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(1,446)	$	(1,642)	$	(2,403)	$	(1,840)	$	(3,335)
Accretion recognized in interest income		147		196		308		541		1,240
Adjustments to gross amortized cost of loans at end of period	$	(1,299)	$	(1,446)	$	(2,095)	$	(1,299)	$	(2,095)

PAST DUE LOANS AND NONPERFORMING ASSETS

(Dollars In Thousands)


	September 30,			June 30,			December 31,			September 30,
	2023			2023			2022			2022
Loans individually evaluated with a valuation allowance	$	7,861		$	5,785		$	3,460		$	3,396
Loans individually evaluated without a valuation allowance		4,146			3,314			14,871			6,130
Purchased credit impaired loans		0			0			1,027			3,783
Total individually evaluated loans	$	12,007		$	9,099		$	19,358		$	13,309

Total loans past due 30-89 days and still accruing	$	3,675		$	4,709		$	7,079		$	3,041

Nonperforming assets:
Purchased credit impaired loans	$	0		$	0		$	1,027		$	3,783
Other nonaccrual loans		15,501			12,827			22,058			13,176
Total nonaccrual loans		15,501			12,827			23,085			16,959
Total loans past due 90 days or more and still accruing		1,292			1,164			2,237			3,499
Total nonperforming loans		16,793			13,991			25,322			20,458
Foreclosed assets held for sale (real estate)		633			459			275			454
Total nonperforming assets	$	17,426		$	14,450		$	25,597		$	20,912

Total nonperforming loans as a % of total loans		0.92	%		0.77	%		1.46	%		1.21	%
Total nonperforming assets as a % of assets		0.70	%		0.58	%		1.04	%		0.87	%
Allowance for credit losses as a % of total loans		0.99	%		1.05	%		0.95	%		0.96	%

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LOANS

(In Thousands)


	3 Months		3 Months		9 Months		9 Months
	Ended		Ended		Ended		Ended
	September 30,		June 30,		September 30,		September 30,
	2023		2023		2023		2022
Balance, beginning of period	$	19,056	$	18,346	$	16,615	$	13,537
Adoption of ASU 2016-13 (CECL)		0		0		2,104		0
Charge-offs		(98)		(134)		(299)		(2,417)
Recoveries		60		8		74		57
Net charge-offs		(38)		(126)		(225)		(2,360)
(Credit) provision for credit losses on loans		(933)		836		(409)		4,993
Balance, end of period	$	18,085	$	19,056	$	18,085	$	16,170

ANALYSIS OF THE (CREDIT) PROVISION FOR CREDIT LOSSES

(In Thousands)


	3 Months		3 Months		9 Months		9 Months
	Ended		Ended		Ended		Ended
	September 30,		June 30,		September 30,		September 30,
	2023		2023		2023		2022
(Credit) provision for credit losses:
Loans receivable	$	(933)	$	836	$	(409)	$	4,993
Off-balance sheet exposures (1)		(292)		(24)		(356)		0
Total (credit) provision for credit losses	$	(1,225)	$	812	$	(765)	$	4,993

(1) The (credit) provision 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						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2023		2023		2022		2023		2022
INTEREST INCOME
Interest-bearing due from banks	$	345	$	309	$	176	$	932	$	335
Available-for-sale debt securities:
Taxable		2,077		2,152		2,138		6,440		6,143
Tax-exempt		681		713		947		2,161		2,811
Total available-for-sale debt securities		2,758		2,865		3,085		8,601		8,954
Loans receivable:
Taxable		25,526		24,360		19,967		72,314		55,662
Paycheck Protection Program		3		2		118		8		899
Tax-exempt		680		700		635		2,093		1,796
Total loans receivable		26,209		25,062		20,720		74,415		58,357
Other earning assets		18		14		38		40		69
Total Interest Income		29,330		28,250		24,019		83,988		67,715

INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		2,360		1,512		487		4,859		989
Money market		1,669		1,112		639		3,654		1,270
Savings		60		63		66		186		191
Time deposits		3,175		2,412		780		6,894		1,562
Total interest-bearing deposits		7,264		5,099		1,972		15,593		4,012
Borrowed funds:
Short-term		677		1,144		179		2,918		302
Long-term - FHLB advances		1,164		1,056		332		2,901		436
Senior notes, net		120		119		119		359		357
Subordinated debt, net		230		231		229		691		849
Total borrowed funds		2,191		2,550		859		6,869		1,944
Total Interest Expense		9,455		7,649		2,831		22,462		5,956

Net Interest Income	$	19,875	$	20,601	$	21,188	$	61,526	$	61,759

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,
	2023		2023		2022		2023		2022
Net Interest Income Under U.S. GAAP	$	19,663	$	20,362	$	20,879	$	60,806	$	60,836
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		84		103		179		314		553
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		128		136		130		406		370
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	19,875	$	20,601	$	21,188	$	61,526	$	61,759

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
	9/30/2023		Return/		6/30/2023		Return/		9/30/2022		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	31,729	4.31	%	$	29,861	4.15	%	$	34,465	2.03	%
Available-for-sale debt securities, at amortized cost:
Taxable		379,709	2.17	%		395,725	2.18	%		414,147	2.05	%
Tax-exempt		124,435	2.17	%		126,839	2.25	%		150,773	2.49	%
Total available-for-sale debt securities		504,144	2.17	%		522,564	2.20	%		564,920	2.17	%
Loans receivable:
Taxable		1,729,835	5.85	%		1,697,592	5.76	%		1,582,245	5.01	%
Paycheck Protection Program		137	8.69	%		148	5.42	%		4,695	9.97	%
Tax-exempt		87,026	3.10	%		90,111	3.12	%		87,330	2.88	%
Total loans receivable		1,816,998	5.72	%		1,787,851	5.62	%		1,674,270	4.91	%
Other earning assets		1,468	4.86	%		1,325	4.24	%		3,925	3.84	%
Total Earning Assets		2,354,339	4.94	%		2,341,601	4.84	%		2,277,580	4.18	%
Cash		22,068				23,084				23,731
Unrealized loss on securities		(63,110)				(56,564)				(44,559)
Allowance for credit losses		(19,540)				(18,795)				(14,914)
Bank-owned life insurance		31,559				31,410				30,991
Bank premises and equipment		21,132				21,140				21,874
Intangible assets		55,125				55,228				55,547
Other assets		74,483				69,213				57,012
Total Assets	$	2,476,056			$	2,466,317			$	2,407,262

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	512,074	1.83	%	$	463,300	1.31	%	$	442,647	0.44	%
Money market		340,618	1.94	%		328,581	1.36	%		438,770	0.58	%
Savings		232,240	0.10	%		247,434	0.10	%		261,422	0.10	%
Time deposits		406,436	3.10	%		375,557	2.58	%		298,628	1.04	%
Total interest-bearing deposits		1,491,368	1.93	%		1,414,872	1.45	%		1,441,467	0.54	%
Borrowed funds:
Short-term		49,157	5.46	%		87,479	5.25	%		33,970	2.09	%
Long-term - FHLB advances		119,395	3.87	%		110,982	3.82	%		51,628	2.55	%
Senior notes, net		14,808	3.22	%		14,789	3.23	%		14,741	3.20	%
Subordinated debt, net		24,676	3.70	%		24,648	3.76	%		24,566	3.70	%
Total borrowed funds		208,036	4.18	%		237,898	4.30	%		124,905	2.73	%
Total Interest-bearing Liabilities		1,699,404	2.21	%		1,652,770	1.86	%		1,566,372	0.72	%
Demand deposits		498,724				533,533				557,116
Other liabilities		30,749				28,217				23,588
Total Liabilities		2,228,877				2,214,520				2,147,076
Stockholders' equity, excluding accumulated other comprehensive loss		296,577				296,015				295,086
Accumulated other comprehensive loss		(49,398)				(44,218)				(34,900)
Total Stockholders' Equity		247,179				251,797				260,186
Total Liabilities and Stockholders' Equity	$	2,476,056			$	2,466,317			$	2,407,262
Interest Rate Spread			2.73	%			2.98	%			3.46	%
Net Interest Income/Earning Assets			3.35	%			3.53	%			3.69	%

Total Deposits (Interest-bearing and Demand)	$	1,990,092			$	1,948,405			$	1,998,583

(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
	9/30/2023		Return/		9/30/2022		Return/
	Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds%
EARNING ASSETS
Interest-bearing due from banks	$	31,076	4.01	%	$	55,154	0.81	%
Available-for-sale debt securities, at amortized cost:
Taxable		395,070	2.18	%		408,178	2.01	%
Tax-exempt		127,530	2.27	%		148,977	2.52	%
Total available-for-sale debt securities		522,600	2.20	%		557,155	2.15	%
Loans receivable:
Taxable		1,687,444	5.73	%		1,507,756	4.94	%
Paycheck Protection Program		149	7.18	%		10,887	11.04	%
Tax-exempt		89,645	3.12	%		85,492	2.81	%
Total loans receivable		1,777,238	5.60	%		1,604,135	4.86	%
Other earning assets		1,332	4.02	%		2,750	3.35	%
Total Earning Assets		2,332,246	4.81	%		2,219,194	4.08	%
Cash		22,475				22,527
Unrealized loss on securities		(59,921)				(28,068)
Allowance for loan losses		(18,472)				(14,406)
Bank-owned life insurance		31,413				30,857
Bank premises and equipment		21,262				21,494
Intangible assets		55,227				55,655
Other assets		70,369				52,610
Total Assets	$	2,454,599			$	2,359,863

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	477,751	1.36	%	$	431,344	0.31	%
Money market		344,527	1.42	%		448,377	0.38	%
Savings		245,483	0.10	%		255,433	0.10	%
Time deposits		365,174	2.52	%		281,673	0.74	%
Total interest-bearing deposits		1,432,935	1.45	%		1,416,827	0.38	%
Borrowed funds:
Short-term		75,978	5.13	%		24,306	1.66	%
Long-term - FHLB advances		103,817	3.74	%		32,509	1.79	%
Senior notes, net		14,790	3.25	%		14,725	3.24	%
Subordinated debt, net		24,648	3.75	%		27,966	4.06	%
Total borrowed funds		219,233	4.19	%		99,506	2.61	%
Total Interest-bearing Liabilities		1,652,168	1.82	%		1,516,333	0.53	%
Demand deposits		523,822				547,836
Other liabilities		28,091				22,565
Total Liabilities		2,204,081				2,086,734
Stockholders' equity, excluding accumulated other comprehensive loss		297,386				295,019
Accumulated other comprehensive loss		(46,868)				(21,890)
Total Stockholders' Equity		250,518				273,129
Total Liabilities and Stockholders' Equity	$	2,454,599			$	2,359,863
Interest Rate Spread			2.99	%			3.55	%
Net Interest Income/Earning Assets			3.53	%			3.72	%

Total Deposits (Interest-bearing and Demand)	$	1,956,757			$	1,964,663

(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,
	2023		2023		2022		2023		2022
Trust revenue	$	1,919	$	1,804	$	1,744	$	5,500	$	5,245
Brokerage and insurance revenue		394		365		696		1,189		1,784
Service charges on deposit accounts		1,443		1,388		1,105		4,121		3,662
Interchange revenue from debit card transactions		1,098		1,010		1,031		3,115		3,050
Net gains from sales of loans		237		139		131		450		733
Loan servicing fees, net		154		190		189		466		757
Increase in cash surrender value of life insurance		160		152		133		450		405
Other noninterest income		1,084		1,587		622		3,442		2,666
Total noninterest income, excluding realized gains (losses) on securities, net	$	6,489	$	6,635	$	5,651	$	18,733	$	18,302

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2023		2023		2022		2023		2022
Salaries and employee benefits	$	10,878	$	10,777	$	10,826	$	33,082	$	31,698
Net occupancy and equipment expense		1,268		1,323		1,498		3,993		4,217
Data processing and telecommunications expenses		1,823		1,900		1,719		5,659		5,062
Automated teller machine and interchange expense		504		395		397		1,374		1,128
Pennsylvania shares tax		403		404		487		1,210		1,463
Professional fees		487		564		521		1,988		1,490
Other noninterest expense		2,577		3,359		1,995		8,443		6,310
Total noninterest expense	$	17,940	$	18,722	$	17,443	$	55,749	$	51,368

NON-OWNER OCCUPIED COMMERCIAL REAL ESTATE

(In Thousands)


Loan Type	September 30,		% of Non-owner		% of
	2023		Occupied CRE		Total Loans
Industrial	$	107,268	21.3	%	5.9	%
Office		94,729	18.8	%	5.2	%
Retail		94,542	18.8	%	5.2	%
Hotels		73,511	14.6	%	4.0	%
Mixed Use		59,702	11.9	%	3.3	%
Other		73,682	14.6	%	4.0	%
Total Non-owner Occupied CRE Loans	$	503,434
Total Gross Loans	$	1,830,670

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,
	2023		2023		2022		2023		2023		2022		2023		2023		2022
Federal Home Loan Bank of Pittsburgh	$	165,951	$	157,428	$	150,099	$	752,847	$	725,417	$	689,279	$	918,798	$	882,845	$	839,378
Federal Reserve Bank Discount Window		0		0		0		20,766		21,903		23,107		20,766		21,903		23,107
Other correspondent banks		0		0		0		95,000		95,000		95,000		95,000		95,000		95,000
Total credit facilities	$	165,951	$	157,428	$	150,099	$	868,613	$	842,320	$	807,386	$	1,034,564	$	999,748	$	957,485


Uninsured Deposits Information	September 30,			June 30,			December 31,
	2023			2023			2022
Total Deposits - C&N Bank	$	2,040,506		$	2,025,471		$	2,016,666

Estimated Total Uninsured Deposits	$	602,957		$	605,801		$	689,435
Portion of Uninsured Deposits that are
Collateralized		188,927			172,976			205,886
Uninsured and Uncollateralized Deposits	$	414,030		$	432,825		$	483,549

Uninsured and Uncollateralized Deposits as
a % of Total Deposits		20.3	%		21.4	%		24.0	%

Available Funding from Credit Facilities	$	868,613		$	842,320		$	807,386
Fair Value of Available-for-sale Debt
Securities in Excess of Pledging Obligations		227,667			257,537			272,475
Highly Liquid Available Funding	$	1,096,280		$	1,099,857		$	1,079,861

Highly Liquid Available Funding as a % of
Uninsured Deposits		181.8	%		181.6	%		156.6	%

Highly Liquid Available Funding as a % of
Uninsured and Uncollateralized Deposits		264.8	%		254.1	%		223.3	%