EX-99.1 12 cznc-20231231xex99d1.htm EX-99.1
Exhibit 99.1

| ADAPTABILITY AGILITY: 2023 Annual Highlights Navigating New Landscapes From Storms to Strength, Building a Legacy of Endurance

| CONTENTS 2023 ANNUAL HIGHLIGHTS President&CEO – Shareholder Letter 4 Lead&Guide – C&N Leadership 8 Dollars&Sense – C&N Financial Profile 10 Quarterly Share Data Operations Comparisons End of Period Balances Consolidated Financial Data C&N Wealth Management Awards&Recognition 16 Community&Commitment 18

| From Storms to Strength, Building a Legacy of Endurance Navigating New Landscapes

| Every year throughout its long history, C&N is presented with new challenges, yet 2023 was unique and extraordinary from the beginning. As we turned the calendar from 2022 into 2023, the Federal Reserve continued its fight on inflation with continued rate increases. After reducing the fed funds rate target to 0%- 0.25% at the onset of COVID in 2020, between March of 2022 and July of 2023, it raised the target rate 11 times to 5.25% to 5.50%, the fastest and largest increase in more than 40 years. While both short- and long-term rates increased, the pace of change on the short end produced an inverted yield curve that has persisted into early 2024. With an inverted yield PRESIDENT&CEO curve generally heralding recession, economists have debated when (and if) a recession would materialize, as higher rates have slowed the economy. In March, Silicon Valley Bank and Signature Bank were closed followed by the failure of First Republic Bank in May. While there have been few bank failures in recent years, these were three of the four largest failures in U.S. banking history. While the government and federal regulators took swift action to guarantee these banks’ deposits and reassure customers, there were fears across the country regarding liquidity, challenging all bankers to restore confidence in their banks and the overall system. The industry responded well to these events, calming fears and reducing deposit churn as the months progressed. The C&N team took action to reinforce customer confidence emphasizing the strength of our capital position, diverse local depositor base, low level of uninsured deposits, and access to substantial additional sources of liquidity. These strengths remain today. “The C&N team took action to reinforce customer confidence emphasizing the strength of our capital position, diverse local depositor base, low level of uninsured deposits, and access to substantial additional sources of liquidity. These strengths remain today.” 2023 ANNUAL HIGHLIGHTS 04 Dear Shareholder,

| This environment highlighted our adaptability and agility as the entire team heightened our focus on sustaining and building our strong deposit base. Generating core deposits has always been a key part of our relationship model that focuses on creating value for our clients, not simply paying the highest rates. This model provides both solid liquidity and supports our historically strong net interest margin and earnings. I am pleased to report that the team’s pivot and collective efforts accomplished our goals. Our performance for the year was solid and our strong financial position and risk profile supports our plans for growth. C&N posted a net income of $24.1 million or $1.57 per share in 2023, compared to $26.6 million or $1.71 per share in 2022. 2023 results include a net charge to earnings of $.08 per share, a result of repositioning a portion of our securities portfolio and investments in bank-owned life insurance. One of the most significant factors impacting 2023 results was the lack of growth in net interest income. While we did sustain our strong deposit base and generated solid loan growth, the cost of deposits and other funding sources increased more than the yield on loans and investments causing a decline in this key revenue source. Offsetting this revenue decrease, the provision for credit losses declined substantially, reflecting strong and stable credit quality in the loan portfolio. Non-interest income, excluding the impact of the balance sheet restructuring in the fourth quarter, increased somewhat. And the increase in noninterest expenses reflects the impact of inflation as well as ongoing investments in our capacity to deliver value for customers and position for growth. 4 Bank stock prices were generally volatile during 2023, C&N included. The December 31,2023 closing price was $22.43, about 2% lower than a year earlier. However, the 52-week high and low were $23.90 and $16.71, respectively. All through these fluctuations, C&N shares retained a strong valuation relative to the industry as measured by price-to-book value and price earnings multiples. Supporting this strength and reflecting confidence in the future of C&N, total cash dividends to shareholders for 2023 remained at $1.12 per share. This represents a 4.99% annualized yield on C&N common stock based on the December 31, 2023, closing price of $22.43 per share. Branches&Roots With the disrupted banking environment of 2023, our Branch Delivery teams went above and beyond to educate and inform customers on the details of deposit insurance, while meeting their needs and creating value. As always, we worked to enhance our ability to provide outstanding service by asking customers and our teams to consider the hallmarks of a great C&N experience and how we can know when we’ve delivered. Utilizing this feedback, our customer Experience Coordinator and dedicated Customer Experience Team developed formal standards that will serve as a framework for providing consistent, streamlined, excellent service. This means instead of simply recommending a product or service without context, our teams are seeking to understand customer needs, and recommend appropriate solutions based on their 05 2023 ANNUAL HIGHLIGHTS

| existing “connection points” with C&N, whether that’s depositing a check with your Personal Banker, or assessing retirement options with a Financial Advisor. We’re also deepening the connection with our Southeast and Southcentral Pennsylvania regions. In August, we welcomed three new members to our Southeast Wealth Management team and in January 2024 we welcomed three new commercial lenders to serve the Lancaster area, ensuring we are well-positioned to pursue opportunities in each market. Technology&Data We continued to make significant, targeted investments in technology that will help us to anticipate our customers’ needs and provide the means for following up promptly across departments when a need is recognized. We’re also making our products, services and platforms even easier and more streamlined. Our new small business lending platform, for example, will allow small business customers to quickly apply for a loan with a few clicks or swipes on their phone! In May, we updated our C&N Lifetime credit card platform with significantly improved functionality and several enhanced features. This new portal allows for a fully digital application process, mobile friendly website, greater utility and value for business customers, and easy access to account services. We also advanced technology with the introduction of “Andy”, our virtual assistant, that helps customers answer questions 24/7! And in the coming months, we will be introducing significant enhancements to our online deposit platforms that will provide a seamless, convenient digital experience for both personal and business banking. Teams &Culture In January 2023, Kelley Cwiklinski joined the executive team as our Chief Commercial Lending Officer. In addition to her broad experience, Kelley’s leadership and commitment to creating value for customers is a great fit for C&N and was important as we navigated the challenging marketplace in 2023. Our teams have again shone their dedication to our 2023 ANNUAL HIGHLIGHTS 06 “Our performance for the year was solid and our strong financial position and risk profile supports our plans for growth.”

| communities with our Giving Back, Giving together initiatives. Last May, we closed our Emergency Services campaign, bringing in over $100,000 to support local emergency services organizations. Our current cause of supporting local seniors has already earned over $50,000, halfway to our $100,000 goal! C&N is partnered with 33 local senior organizations on their mission, and our teams will continue to support this cause across all markets in 2024! We also had a record year for our financial literacy programs, reaching over 1,700 students with our Teach Children to Save and Get Smart About Credit in-school presentations. These achievements reflect our unwavering commitment to financial education and community engagement. And in January we began our Safe Banking for Seniors program; an initiative that helps seniors navigate financial topics like avoiding scams, understanding power of attorney, and preventing identify theft. As we reflect on the events of 2023, it’s clear we would not be here without the engagement and resilience of our teams. Through all the challenges of this most unique year, they remained focused on creating value for our customers, reaffirming our commitment to serving the community, while also building capacity to pursue our strategy for growth. It is their effort that will continue to generate long-term value for you, our shareholders. Our current cause of supporting local seniors has already earned over $50,000, halfway to our $100,000 goal! We’re also making our products, services & platforms even easier and more streamlined. Our new small business lending platform will allow small business customers to quickly apply for a loan with a few clicks or swipes on their phone! 07 2023 ANNUAL HIGHLIGHTS J. Bradley Scovill President & CEO

| LEAD&GUIDE 2023 ANNUAL HIGHLIGHTS 08 Mark A. Hughes Treasurer Elizabeth Pivirotto Executive Assistant to the CEO Glenn James EVP & General Counsel & Corporate Secretary J. Bradley Scovill President & CEO CORPORATE OFFICERS Alex Balagour EVP & Chief Information Officer Matthew Bower EVP & Chief Wealth Management Officer Kelley Cwiklinski EVP & Chief Commercial Lending Officer Stan R. Dunsmore EVP & Chief Credit Officer Hal F. Hoose, III EVP & Chief Revenue Officer Mark A. Hughes EVP & Chief Financial Officer Glenn James EVP & General Counsel & Corporate Secretary John M. Reber EVP & Chief Risk Management Officer Thomas L. Rudy, Jr. EVP & Chief Delivery Officer Blair T. Rush EVP & Regional President J. Bradley Scovill President & CEO Tracy E. Watkins EVP & Chief Human Resource Officer EXECUTIVE TEAM

| 09 2023 ANNUAL HIGHLIGHTS North Region John A. Abplanalp Evan R. Barnes Brian A. Bicksler Casandra K. Blaney Krystle R. Bristol James N. Capriotti Laura C. Cimino Matthew S. DeCamp D. Mark Errick Byron Farnsworth Jr. Zachary R. Gates Brandon E. Hackett Lindsay R. Harding Mark R. Howe John S. Johnston Joseph R. Kightlinger Taunya Knolles Rosenbloom J. Wesley Kocsis Dr. Stephen D. Laudermilch Danielle M. Lee Scott E. Lewis Kimberly J. Mastrantonio David C. Murdock Mary C. Owlett Jeffrey B. Paul Damian M. Rossettie William B. Saxe Eric Schoonover Ray E. Wheeland Andrew R. Wilcox Andrea F. Streich Northcentral Region Robert T. Beiter Stanley Cary Jr. John M. Confer Nichole B. Crawford Andrew J. Girio Benjamin D. Meckbach Jeffrey M. Patterson Tyler L. Rhone David A. Schall Allison Savoy Staiman Southcentral Region Thomas K. Baughman Matthew R. Doran Nicholas E. Hauck Ryan A. Myers Alex E. Snyder Southeast Region Glenda R. Childs Linda J. Kilroy Daniel P. Marrazzo Karen J. Miller Louis Quattrocchi Gary B. Rubin Michael J. Rush Irving N. Stein David E. Thompson James Watts ADVISORY BOARD Terry L. Lehman, CPA Chairman, Retired Certified Public Accountant Stephen M. Dorwart, CPA Fischer Dorwart, P.C. Susan E. Hartley Attorney at Law Bobbi J. Kilmer Retired President & CEO, Claverack Rural Electric Leo F. Lambert Former President/ GM Fitzpatrick & Lambert, Inc. Robert G. Loughery President, Nehemiah Development Company Frank G. Pellegrino Owner & Developer, Carlton Associates, LLC Helen S. Santiago, CPA LaBarr and LaBarr J. Bradley Scovill President & CEO, C&N Katherine W. Shattuck Consultant, Senior Client Partner, Korn Ferry Aaron K. Singer President & CEO, Metalkraft Industries, Inc. BOARD OF DIRECTORS We are grateful to our Board of Directors & Advisory Board members for lending their expertise to further the mission of C&N and for providing us with valuable insight into the communities we serve.

| DOLLARS&SENSE 2023 ANNUAL HIGHLIGHTS 10 2023 QUARTERLY SHARE PRICE DATA $30.00 $20.00 $10.00 $0.00 First Quarter Second Quarter Third Quarter Fourth Quarter High Low 2023 HIGH LOW DIVIDEND DECLARED PER QUARTER 2022 HIGH LOW DIVIDEND DECLARED PER QUARTER First quarter $23.90 $20.06 $0.28 First quarter $27.50 $23.82 $0.28 Second quarter 21.72 16.71 0.28 Second quarter 25.20 23.21 0.28 Third quarter 21.71 21.38 0.28 Third quarter 25.77 23.29 0.28 Fourth quarter 23.50 16.92 0.28 Fourth quarter 25.20 22.67 0.28

| DILUTED EARNINGS PER SHARE (In Thousands) 11 2023 ANNUAL HIGHLIGHTS4 2023 2022 2021 2020 2019 FIVE-YEAR SUMMARY Operations Comparison INCOME STATEMENT (In Thousands) 2023 2022 2021 2020 2019 Interest and dividend income $113,504 $92,647 $84,501 $77,160 $64,771 Interest expense 33,104 9,519 6,562 9,595 10,283 Net interest income 80,400 83,128 77,939 67,565 54,488 Provision for credit losses 186 7,255 3,661 3,913 849 Net interest income after provision for credit losses 80,214 75,873 74,278 63,652 53,639 Noninterest income excluding securities (losses) gains 27,453 24,412 25,857 24,344 19,284 Net realized (losses) gains on available-for-sale debt securities (3,036) 20 24 169 23 Loss on prepayment of borrowings 0 0 0 1,636 0 Merger-related expenses 0 0 0 7,708 4,099 Noninterest expense excluding loss on prepayment of borrowings and merger-related expenses 74,148 67,955 62,472 55,609 45,438 Income before income tax provision 30,483 32,350 37,687 23,212 23,409 Income tax provision 6,335 5,732 7,133 3,990 3,905 Net income $24,148 $26,618 $30,554 $19,222 $19,504 Net income attributable to common shares $23,962 $26,381 $30,313 $19,106 $19,404 PER COMMON SHARE DATA 2023 2022 2021 2020 2019 Basic earnings per share $1.57 $1.71 $1.92 $1.30 $1.46 Diluted earnings per share $1.57 $1.71 $1.92 $1.30 $1.46 Cash dividends declared per share $1.12 $1.12 $1.11 $1.08 $1.18 Book value per common share at period-end $17.15 $16.07 $19.13 $18.84 $17.82 Tangible book value per common share at period-end $13.56 $12.50 $15.58 $15.30 $15.66 Weighted average common shares outstanding - basic 15,241,859 15,455,432 15,765,639 14,743,386 13,298,736 Weighted average common shares outstanding - diluted 15,241,859 15,458,531 15,771,955 14,747,048 13,321,559 CASH DIVIDENDS DECLARED PER SHARE $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $2.10 $1.75 $1.40 $1.05 $0.70 $0.35 $0.00 2023 2022 2021 2020 2019

| 2023 ANNUAL HIGHLIGHTS 12 FIVE-YEAR SUMMARY End of Period Balances END OF PERIOD BALANCES(In Thousands) 2023 2022 2021 2020 2019 Available-for-sale debt securities $415,755 $498,033 $517,679 $349,332 $346,723 Gross loans 1,848,139 1,740,040 1,564,849 1,644,209 1,182,222 Allowance for credit losses on loans 19,208 16,615 13,537 11,385 9,836 Total assets 2,515,584 2,454,307 2,327,648 2,239,100 1,654,145 Deposits 2,014,806 1,997,593 1,925,060 1,820,469 1,252,660 Borrowings, senior notes and subordinated debt 211,759 181,781 77,555 91,183 144,847 Stockholders' equity 262,381 249,325 301,405 299,756 244,452 Accumulated other comprehensive (loss) income (38,437) (49,878) 5,026 11,795 3,691 Common shares outstanding 15,295,135 15,518,819 15,759,090 15,911,984 13,716,445 AVERAGE BALANCES (In Thousands) 2023 2022 2021 2020 2019 Total assets 2,462,856 2,372,788 2,319,234 2,009,825 1,540,469 Earning assets 2,341,617 2,240,199 2,145,475 1,856,487 1,437,993 Gross loans 1,792,149 1,628,094 1,596,756 1,445,098 1,057,559 Deposits 1,971,926 1,980,412 1,905,400 1,586,409 1,213,687 Stockholders' equity 248,494 265,093 301,226 273,351 229,446 TOTAL ASSETS (In Thousands) $2,800,000 $2,400,000 $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 2023 2022 2021 2020 2019 GROSS LOANS (In Thousands) $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 2023 2022 2021 2020 2019

| 13 2023 ANNUAL HIGHLIGHTS4 (1) Rates of return on tax-exempt securities and loans are calculated on a fully taxable equivalent basis. (2) The efficiency ratio is calculated by dividing: (a) total noninterest expense excluding merger-related expenses and losses from prepayment of debt, by (b) the sum of net interest income (including income from tax-exempt securities and loans on a fully-taxable equivalent basis) and noninterest income excluding securities gains or losses and enhancement fee of $2.1 million included in noninterest income related to purchase of Bank-Owned Life Insurance in 2023. KEY RATIOS 2023 2022 2021 2020 2019 Return on average assets 0.98% 1.12% 1.32% 0.96% 1.27% Return on average equity 9.72% 10.04% 10.14% 7.03% 8.50% Average equity to average assets 10.09% 11.17% 12.99% 13.60% 14.89% Net interest margin (1) 3.47% 3.77% 3.69% 3.69% 3.86% Efficiency (2) 69.51% 62.48% 59.54% 59.87% 60.73% Cash dividends as a % of diluted earnings per share 71.34% 65.50% 57.81% 83.08% 80.82% Tier 1 leverage 9.87% 10.11% 10.53% 10.34% 13.10% Tier 1 risk-based capital 13.27% 13.43% 15.22% 15.58% 19.19% Total risk-based capital 15.67% 15.72% 18.21% 17.49% 20.70% Tangible common equity/tangible assets 8.43% 8.08% 10.81% 11.15% 13.22% Nonperforming assets/total assets 0.75% 1.04% 0.94% 1.10% 0.80% Nonperforming loans/total loans 0.99% 1.46% 1.36% 1.42% 0.88% Allowance for credit losses/total loans 1.04% 0.95% 0.87% 0.69% 0.83% Net charge-offs/average loans 0.01% 0.26% 0.09% 0.16% 0.03% FIVE-YEAR SUMMARY End of Period Balances STOCKHOLDERS’ EQUITY (In Thousands) $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $0 2023 2022 2021 2020 2019 DEPOSITS (In Thousands) $2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 0 2023 2022 2021 2020 2019

| 2023 ANNUAL HIGHLIGHTS 14 2023 (In Thousands Except Per Share Data) (Unaudited) 1st quarter March 31 2nd quarter June 30 3rd quarter Sept. 30 4th quarter Dec. 31 Interest income $26,139 $28,011 $29,118 $30,236 Interest expense 5,358 7,649 9,455 10,642 Net interest income 20,781 20,362 19,663 19,594 (Credit) provision for credit losses (352) 812 (1,225) 951 Net interest income after (credit) provision for credit losses 21,133 19,550 20,888 18,643 Other income 5,609 6,635 6,489 8,720 Net realized gains (losses) on available-for-sale debt securities 7 (1) 0 (3,042) Other expenses 19,087 18,722 17,940 18,399 Income before income tax provision 7,662 7,462 9,437 5,922 Income tax provision 1,409 1,419 1,846 1,661 Net income $6,253 $6,043 $7,591 $4,261 Net income attributable to common shares $6,201 $5,996 $7,534 $4,231 Net income per share – basic $0.40 $0.39 $0.50 $0.28 Net income per share – diluted $0.40 $0.39 $0.50 $0.28 2022 (In Thousands Except Per Share Data) (Unaudited) 1st quarter March 31 2nd quarter June 30 3rd quarter Sept. 30 4th quarter Dec. 31 Interest income $21,773 $21,309 $23,710 $25,855 Interest expense 1,441 1,684 2,831 3,563 Net interest income 20,332 19,625 20,879 22,292 Provision for credit losses 891 308 3,794 2,262 Net interest income after provision for credit losses 19,441 19,317 17,085 20,030 Other income 5,821 6,830 5,651 6,110 Net realized gains (losses) on available-for-sale debt securities 2 (1) 20 (1) Other expenses 16,886 17,039 17,443 16,587 Income before income tax provision 8,378 9,107 5,313 9,552 Income tax provision 1,483 1,618 858 1,773 Net income $6,895 $7,489 $4,455 $7,779 Net income attributable to common shares $6,835 $7,419 $4,416 $7,711 Net income per share – basic $0.44 $0.48 $0.29 $0.50 Net income per share – diluted $0.44 $0.48 $0.29 $0.50 QUARTERLY CONSOLIDATED FINANCIAL DATA The following table presents summarized financial data for 2022 & 2023

| 15 2023 ANNUAL HIGHLIGHTS4 TRUST REVENUE (In Thousands) $7,500 $6,000 $4,500 $3,000 $1,500 $0 $1,300,000 $1,040,000 $780,000 $520,000 $260,000 $0 TRUST ASSETS UNDER MANAGEMENT (In Thousands) Some products are not FDIC insured or guaranteed, not a deposit or other obligation of the bank, not guaranteed by the bank and are subject to investment risk, including possible loss of the principal amount invested and are not insured by any other federal government agency. 2023 2022 2021 2020 2019 2023 2022 2021 2020 2019 WEALTH MANAGEMENT (In Thousands) 2023 2022 2021 2020 2019 Assets $1,188,082 $1,063,615 $1,232,919 $1,103,228 $1,007,113 Revenue $7,413 $6,994 $7,234 $6,321 $6,106 INVESTMENTS (In Thousands) 2023 2022 2021 2020 2019 Mutual Funds $732,876 $680,475 $797,336 $697,010 $611,539 Stocks 230,120 207,227 250,765 223,543 207,847 Bonds 111,457 90,447 95,427 104,833 101,966 Savings and money market funds 98,919 69,352 75,140 63,069 71,936 Real Estate 8,796 9,294 6,012 6,797 6,349 Miscellaneous 5,899 6,736 8,145 7,873 7,346 Mortgages 15 84 94 103 130 Total $1,188,082 $1,063,615 $1,232,919 $1,103,228 $1,007,113 ACCOUNTS (In Thousands) 2023 2022 2021 2020 2019 Pension/profit sharing $452,395 $424,157 $498,714 $439,739 $402,062 Investment management 418,393 345,753 391,777 344,688 307,068 Trusts 201,450 192,426 227,821 209,273 196,660 Custody 103,906 94,769 104,562 99,273 89,241 Guardianships 4,028 3,421 3,852 3,328 2,907 Estates 7,910 3,089 6,193 6,927 9,175 Total $1,188,082 $1,063,615 $1,232,919 $1,103,228 $1,007,113 WEALTH MANAGEMENT DATA The following table presents summarized financial data for C&N Wealth Management.

| AWARDS&RECOGNITION 2023 ANNUAL HIGHLIGHTS 16 Retirements 11 C&N team members were recognized for their combined 236 years of service. C&N is proud and appreciative of their dedication to the organization. 45 Years of Service Virginia Reap Sayre 22 Years of Service Janis Bartlett Muncy 18 Years of Service Diane Egly Williamsport 6 Years of Service Karen Pangrazzi Wellsboro 43 Years of Service Mark Miller Wellsboro 21 Years of Service Teri Snyder Sayre 15 Years of Service Toni Bolt Tioga 3 Years of Service Patrick Davis Doylestown 36 Years of Service Christopher Bolt Wellsboro 19 Years of Service Darci Baird Sayre 8 Years of Service Lynne Povish Old Lycoming Years of Service Milestones 38 C&N team members were recognized for their combined 455 years of service. C&N is proud and appreciative of their dedication to the organization. 35 Years of Service Dianne E. Zimmerman 30 Years of Service Leslie R. Raymond Wendy J. Smith 25 Years of Service Peter J. Boergermann Victoria S. Harrison 20 Years of Service Amy S. Bowser Christopher J. Rell 20 Years of Service Tracy E. Watkins Nadine M. Wingrove 15 Years of Service Cassie J. Brelo Laeken M. Cook Chrissi L. Hume 10 Years of Service Rachel M. Brill Kori A. Casselberry Felicia M. Crumb 10 Years of Service Patricia H. Ibach Amy L. Long Wesley A. O’Neil Amanda M. Reed Lynne M. Smith 5 Years of Service Deana M. Campbell Riley S. Collins Christian A. Cuff Angela M. Day Kristine L. Drake 5 Years of Service Ryan L. Eck Michael J. Hickey Phylis A. Jensen Susan C. Kehler Corinne B. Mast Alyssa A. Morey Maureen L. Putnam Tyler R. Sones Ryan J. Tevlin Jessica R. Walton Shelby H. Wheeler The Teri L. Mitchell Scholarship The Teresa (Teri) L. Mitchell Scholarship honors Teri’s 37 years of devoted service at C&N, encapsulating her commitment to professional growth. Established in her memory, the scholarship supports C&N teammates displaying dedication to ongoing professional development and a strong work ethic. Congratulations to the 2023 Scholarship winners, embodying the values cherished by Teri. This legacy scholarship provides recipients with the opportunity to attend the PA Bankers Association’s Women in Banking Conference, echoing Teri’s appreciation for educational opportunities. • Lindsay Bickley • Rachel Brill • Jessika Garner • Samantha Pecynski • Maria Ryan • Kristen Summerson

| 4 AWARDS&RECOGNITION 17 2023 ANNUAL HIGHLIGHTS Best Team Partner Award Training & Development Team Best Team Partner Award Accounting Team Impactful Awards Spirit of Service Award Brittany Weiskopff (left), Executive Assistant, Wellsboro, presented by Hal Hoose. Jessica Walton (right), Trust Administrator, Sayre, presented by Tom Rudy. Spirit of Service Award Top Performing Team Phylis Jensen (right), AVP - Retail Operations Coordinator, Wellsboro, presented by Cassie Brelo. Commercial Lending Team accepted on behalf of the team by Kelley A. Cwiklinski, Chief Commercial Lending Officer Achievement Award Top Performer Award Joselyn Remphrey (right), Retail Operations Coordinator, Muncy presented by Tom Rudy. Tracy Merrick (left), Universal Client Contact Specialist, Wellsboro, presented by Hal Hoose.

| COMMUNITY&COMMITMENT 2023 ANNUAL HIGHLIGHTS 18 C&N’s story isn’t confined to balance sheets and teller windows; it’s woven into the very fabric of the communities we serve. We’re more than just a bank, we’re neighbors, friends, and partners, dedicated to building a brighter future for everyone GIVING BACK, GIVING TOGETHER: C&N’s “Giving Back, Giving Together” initiative works to rewrite the story for local seniors. As of December 2023, this remarkable effort has already surpassed $50,000, but the true measure lies not in dollars, but in the 317 essential items donated, the 55 volunteer hours shared, and the countless smiles painted on faces that truly define this effort. Every dollar raised stays within our community, supporting 33 local senior organizations who know our seniors best. We don’t just deliver warmth; we remind our seniors they’re valued, their stories treasured, their lives worth enriching. Join us in rewriting the narrative! Every donation, every volunteer hour, every item brought with a compassionate heart brings us closer to that $100,000 goal, and closer to warming the hearts of countless seniors, all year round. FINANCIAL WELLNESS PROGRAMS Building a brighter future starts with financial literacy. Through a partnership with the American Bankers Association Foundation, our teammates provide financial wellness programs that reach across generations, touching the lives of children, teens, and even seniors, paving the way for brighter financial futures. • Teach Children to Save (TCTS): 1,254 children, as of December 2023, have learned early lessons in financial responsibility, equipped with the confidence to navigate their future financial journeys. “C&N’s commitment to community is woven into the very core of our being. It’s not confined to financial transactions, but extends into the realm of year-round support and empowerment.”

| 19 2023 ANNUAL HIGHLIGHTS4 • Get Smart About Credit (GSAC): 450 teens have been empowered with vital credit knowledge, fostering positive financial habits that will guide them throughout their lives. A special shout-out to the Emporium Team, whose dedication reached 122 teens and earned them the internal competition win! But the impact goes beyond numbers. Even the smallest of presentations, the quietest whispers of financial wisdom, make a difference. We recognize this, applauding not just our top performers but every team member and office staff who contributes to our success. This dedication shines through in our exciting initiative for 2024: “Safe Banking for Seniors.” Aligning with our core values of customer protection and community support, this program will provide easy-to-use materials and resources to protect and educate senior customers, ensuring their financial security and peace of mind. BUILDING BRIGHTER FUTURES, TOGETHER C&N’s commitment to community is woven into the very core of our being. It’s not confined to financial transactions, but extends into the realm of year-round support and empowerment, from winter warmth for seniors to financial literacy for generations to come. Our dedication is an inspiration, our impact undeniable. As we move forward, we are proud to continue our tradition of weaving threads of kindness, knowledge, and support into the fabric of our communities, one empowered individual, one brighter future at a time.

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