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Pay vs Performance Disclosure
 12 Months Ended
Dec. 31, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Dec. 31, 2020
USD ($)
$ / shares
Pay vs Performance Disclosure        
Pay vs Performance Disclosure, Table

Pay Versus Performance

 

The SEC has adopted rules requiring disclosure of the relationship between executive compensation and financial performance. Consistent with these rules, the Corporation (“CZNC”) is disclosing the information presented in this “Pay Versus Performance” section. The Corporation’s process for evaluating executive compensation is described in the Compensation Discussion and Analysis section of this proxy statement.

 

The following table sets forth summary information concerning executive compensation for each of the last four years.

 

For the Years Ended December 31, 2023, 2022, 2021 and 2020    

 

                              Value of Initial Fixed $100 Investment on 12/31/2019 Based on:              
Year     Summary
Compensation
Table Total for
PEO ($)		     Compensation
Actually Paid
to PEO ($)		     Average
Summary
Compensation
Table Total for
Non-PEO
Named
Executive
Officers ($)		     Average
Compensation
Actually Paid
to Non-PEO
Named
Executive
Officers ($)		     Total
Shareholder
Return ($)		     Peer Group
Total
Shareholder
Return ($)		     Net Income
($)		     Core
Return
on
Average
Equity		  
  2023       1,225,587       1,219,593       478,533       469,811       97.39       106.87       24,148,000       10.35 %
  2022       1,088,120       915,313       463,238       404,421       93.91       110.67       26,618,000       10.20 %
  2021       1,109,193       1,203,089       475,533       514,543       102.47       132.19       30,554,000       10.27 %
  2020       1,045,911       952,598       488,880       437,791       74.23       92.50       19,222,000       9.85 %

 

Mr. Scovill, the CEO, was the PEO in each of the four years presented in the table above. The non-PEO named executive officers included in table above are the same individuals listed for each year in the Summary Compensation Table.

 

The index values shown in the table above are market-weighted dividend-reinvestment numbers, which measure the total return for investing $100.00 four years ago. The Peer Group Total Shareholder Return amounts are determined based on the NASDAQ Bank Index.

 

A reconciliation of Summary Compensation Table Total amounts to amounts described as “Actually Paid” for each year in the Pay Versus Performance table above is presented in the following table.

 

                                    Add: Change in           Less: Fair
Value		        
                              Add: Fair Value     Fair Value of           at End of
Prior		        
                        Less: Stock     at Year-end of     Awards     Add: Change in     Year of any        
                        Awards from     Stock Awards     Granted in     Fair Value of     Awards        
                        Summary     Granted     any     Shares that     Granted        
                        Compensation     During the     Prior Year     Vested as of     in a Prior
Year		        
                        Table     Year that are     that are     the Vesting     that Failed to        
            Summary     Less:     Valued     Outstanding     Outstanding     Date as     Meet Vesting     Total  
            Compensation     Change in     Based on     and Unvested     and Unvested     Compared     Conditions     Compensation  
            Table     Pension     Fair Value at     at the End     at the End     to the End of     in the     Actually  
      Year     Total     Value     Grant Date     of the Year     of the Year     the Prior Year     Covered Year     Paid  
PEO       2023       1,225,587       -       132,301       127,088       (4,102 )     3,321       -       1,219,593  
        2022       1,088,120       -       224,429       170,879       (21,457 )     (6,693 )     91,107       915,313  
        2021       1,109,193       -       213,754       278,883       45,198       9,222       25,653       1,203,089  
        2020       1,045,911       -       196,638       175,723       (52,243 )     (1,905 )     18,250       952,598  
AVERAGE OF       2023       478,533       4,252       49,531       47,580       (1,448 )     (1,071 )     -       469,811  
        2022       463,238       -       85,869       65,197       (8,644 )     (3,198 )     26,303       404,421  
NON-PEO       2021       475,533       -       65,315       85,217       21,041       5,662       7,594       514,543  
NEOs       2020       488,880       14,535       76,024       67,939       (20,526 )     (738 )     7,204       437,791  

 

Notes:

 

1. There was no pension service cost or prior service cost in the years included in the table.

2. There were no stock awards that were granted and vested in the same year.

3. There were no modifications to stock-based awards during the years included in the table.

4. The valuation assumptions used to calculate equity award fair values did not materially differ from those used at the time of grant.

5. There were no other earnings paid on stock or option awards in the covered fiscal years prior to the vesting dates that were not otherwise included in total compensation.

 

The Corporation has selected Core Return on Average Equity (Core ROAE) as its “Company-Selected Measure,” meaning the most important measure the Corporation used in linking compensation actually paid in 2023 to company performance. The Corporation’s calculations of Core ROAE reflect adjustments to earnings determined based on U.S. GAAP to eliminate amounts identified as “extraordinary occurrences” as described in the 2023 Annual Incentive Plan Award document. Reconciliation of the Corporation’s earnings under U.S. GAAP to the non-GAAP earnings amount included in Core ROAE for each year included in the Pay Versus Performance table is presented in the following table. Income tax has been allocated based on a marginal income tax rate of 21%, adjusted for the nondeductible portion of merger expenses.

 

    Year Ended December 31, 2023     Year Ended December 31, 2022  
    Income                 Diluted     Income                 Diluted  
    Before                 Earnings     Before                 Earnings  
    Income     Income           per     Income     Income           per  
    Tax     Tax     Net     Common     Tax     Tax     Net     Common  
(Dollars In Thousands, Except Per Share Data)   Provision     Provision     Income     Share     Provision     Provision     Income     Share  
Earnings Under U.S. GAAP   $ 30,483     $ 6,335     $ 24,148     $ 1.57     $ 32,350     $ 5,732     $ 26,618     $ 1.71  
Add: Amortization of Core Deposit Intangibles     408       86       322               439       92       347          
Net Realized Losses (Gains) on Available-for-Sale Debt Securities     3,036       638       2,398               (20 )     (4 )     (16 )        
Net (Gain) Loss on Marketable Equity Security     (12 )     (3 )     (9 )             112       24       88          
Tax charge on surrender of BOLI     0       (950 )     950               0       0       0          
Enhancement Fee Related to Purchase of BOLI     (2,100 )     0       (2,100 )             0       0       0          
Adjusted Earnings (Non-U.S. GAAP)   $ 31,815     $ 6,106     $ 25,709     $ 1.67     $ 32,881     $ 5,844     $ 27,037     $ 1.73  
Average Equity                   $ 248,494                             $ 265,093          
Core Return on Average Equity                     10.35 %                             10.20 %        

 

   

 

Year Ended December 31, 2021

     Year Ended December 31, 2020  
    Income                 Diluted     Income                 Diluted  
    Before                 Earnings     Before                 Earnings  
    Income     Income           per     Income     Income           per  
    Tax     Tax     Net     Common     Tax     Tax     Net     Common  
(Dollars In Thousands, Except Per Share Data)   Provision     Provision     Income     Share     Provision     Provision     Income     Share  
Earnings Under U.S. GAAP   $ 37,687     $ 7,133     $ 30,554     $ 1.92     $ 23,212     $ 3,990     $ 19,222     $ 1.30  
Add: Merger-Related Expenses     0       0       0               7,708       1,574       6,134          
Add: Loss on Prepayment of Borrowings     0       0       0               1,636       344       1,292          
Add: Amortization of Core Deposit Intangibles     535       112       423               540       113       427          
Less: Gain on Sale of Land     (46 )     (10 )     (36 )             0       0       0          
Net Realized Gains on Available-for-Sale Debt Securities     (24 )     (5 )     (19 )             (169 )     (35 )     (134 )        
Net Loss on Marketable Equity Security     29       6       23               (21 )     (4 )     (17 )        
Adjusted Earnings (Non-U.S. GAAP)   $ 38,181     $ 7,236     $ 30,945     $ 1.95     $ 32,906     $ 5,982     $ 26,924     $ 1.81  
Average Equity                   $ 301,226                             $ 273,351          
Core Return on Average Equity                     10.27 %                             9.85 %        
      
Company Selected Measure Name Core Return on Average Equity      
Named Executive Officers, Footnote

Mr. Scovill, the CEO, was the PEO in each of the four years presented in the table above. The non-PEO named executive officers included in table above are the same individuals listed for each year in the Summary Compensation Table.

      
PEO Total Compensation Amount $ 1,225,587 $ 1,088,120 $ 1,109,193 $ 1,045,911
PEO Actually Paid Compensation Amount $ 1,219,593 915,313 1,203,089 952,598
Adjustment To PEO Compensation, Footnote

A reconciliation of Summary Compensation Table Total amounts to amounts described as “Actually Paid” for each year in the Pay Versus Performance table above is presented in the following table.

                                    Add: Change in           Less: Fair
Value		        
                              Add: Fair Value     Fair Value of           at End of
Prior		        
                        Less: Stock     at Year-end of     Awards     Add: Change in     Year of any        
                        Awards from     Stock Awards     Granted in     Fair Value of     Awards        
                        Summary     Granted     any     Shares that     Granted        
                        Compensation     During the     Prior Year     Vested as of     in a Prior
Year		        
                        Table     Year that are     that are     the Vesting     that Failed to        
            Summary     Less:     Valued     Outstanding     Outstanding     Date as     Meet Vesting     Total  
            Compensation     Change in     Based on     and Unvested     and Unvested     Compared     Conditions     Compensation  
            Table     Pension     Fair Value at     at the End     at the End     to the End of     in the     Actually  
      Year     Total     Value     Grant Date     of the Year     of the Year     the Prior Year     Covered Year     Paid  
PEO       2023       1,225,587       -       132,301       127,088       (4,102 )     3,321       -       1,219,593  
        2022       1,088,120       -       224,429       170,879       (21,457 )     (6,693 )     91,107       915,313  
        2021       1,109,193       -       213,754       278,883       45,198       9,222       25,653       1,203,089  
        2020       1,045,911       -       196,638       175,723       (52,243 )     (1,905 )     18,250       952,598  
AVERAGE OF       2023       478,533       4,252       49,531       47,580       (1,448 )     (1,071 )     -       469,811  
        2022       463,238       -       85,869       65,197       (8,644 )     (3,198 )     26,303       404,421  
NON-PEO       2021       475,533       -       65,315       85,217       21,041       5,662       7,594       514,543  
NEOs       2020       488,880       14,535       76,024       67,939       (20,526 )     (738 )     7,204       437,791  

Notes:

1. There was no pension service cost or prior service cost in the years included in the table.
2. There were no stock awards that were granted and vested in the same year.
3. There were no modifications to stock-based awards during the years included in the table.
4. The valuation assumptions used to calculate equity award fair values did not materially differ from those used at the time of grant.
5. There were no other earnings paid on stock or option awards in the covered fiscal years prior to the vesting dates that were not otherwise included in total compensation.
      
Non-PEO NEO Average Total Compensation Amount $ 478,533 463,238 475,533 488,880
Non-PEO NEO Average Compensation Actually Paid Amount $ 469,811 404,421 514,543 437,791
Adjustment to Non-PEO NEO Compensation Footnote

A reconciliation of Summary Compensation Table Total amounts to amounts described as “Actually Paid” for each year in the Pay Versus Performance table above is presented in the following table.

                                    Add: Change in           Less: Fair
Value		        
                              Add: Fair Value     Fair Value of           at End of
Prior		        
                        Less: Stock     at Year-end of     Awards     Add: Change in     Year of any        
                        Awards from     Stock Awards     Granted in     Fair Value of     Awards        
                        Summary     Granted     any     Shares that     Granted        
                        Compensation     During the     Prior Year     Vested as of     in a Prior
Year		        
                        Table     Year that are     that are     the Vesting     that Failed to        
            Summary     Less:     Valued     Outstanding     Outstanding     Date as     Meet Vesting     Total  
            Compensation     Change in     Based on     and Unvested     and Unvested     Compared     Conditions     Compensation  
            Table     Pension     Fair Value at     at the End     at the End     to the End of     in the     Actually  
      Year     Total     Value     Grant Date     of the Year     of the Year     the Prior Year     Covered Year     Paid  
PEO       2023       1,225,587       -       132,301       127,088       (4,102 )     3,321       -       1,219,593  
        2022       1,088,120       -       224,429       170,879       (21,457 )     (6,693 )     91,107       915,313  
        2021       1,109,193       -       213,754       278,883       45,198       9,222       25,653       1,203,089  
        2020       1,045,911       -       196,638       175,723       (52,243 )     (1,905 )     18,250       952,598  
AVERAGE OF       2023       478,533       4,252       49,531       47,580       (1,448 )     (1,071 )     -       469,811  
        2022       463,238       -       85,869       65,197       (8,644 )     (3,198 )     26,303       404,421  
NON-PEO       2021       475,533       -       65,315       85,217       21,041       5,662       7,594       514,543  
NEOs       2020       488,880       14,535       76,024       67,939       (20,526 )     (738 )     7,204       437,791  

Notes:

1. There was no pension service cost or prior service cost in the years included in the table.
2. There were no stock awards that were granted and vested in the same year.
3. There were no modifications to stock-based awards during the years included in the table.
4. The valuation assumptions used to calculate equity award fair values did not materially differ from those used at the time of grant.
5. There were no other earnings paid on stock or option awards in the covered fiscal years prior to the vesting dates that were not otherwise included in total compensation.
      
Compensation Actually Paid vs. Total Shareholder Return      
Compensation Actually Paid vs. Net Income

 

      
Compensation Actually Paid vs. Company Selected Measure

 

      
Total Shareholder Return Vs Peer Group      
Tabular List, Table

A list of performance measures the Corporation considers the most important inputs for linking executive compensation with financial performance is as follows:

 

1. Core Return on Average Equity (as described above)

2. Core Return on Average Assets

3. Growth in Average Deposits, Excluding Brokered Deposits

4. Total Revenue

5. Efficiency Ratio

6. Total Wealth Management Revenue

 

Each of these performance measures is described in detail in the Compensation Discussion and Analysis section.

      
Total Shareholder Return Amount $ 97.39 93.91 102.47 74.23
Peer Group Total Shareholder Return Amount 106.87 110.67 132.19 92.5
Net Income (Loss) $ 24,148,000 $ 26,618,000 $ 30,554,000 $ 19,222,000
Company Selected Measure Amount 10.35 10.2 10.27 9.85
PEO Name Mr. Scovill      
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00%      
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest $ 30,483,000 $ 32,350,000 $ 37,687,000 $ 23,212,000
Income Tax Expense (Benefit) $ 6,335,000 $ 5,732,000 $ 7,133,000 $ 3,990,000
Earnings Per Share, Diluted | $ / shares $ 1.57 $ 1.71 $ 1.92 $ 1.3
Amortization of Intangible Assets $ 408,000 $ 439,000 $ 535,000 $ 540,000
Amortization Of Intangible Assets, Tax 86,000 92,000 112,000 113,000
Amortization Of Intangible Assets, After Tax 322,000 347,000 423,000 427,000
Gain (Loss) on Disposition of Property Plant Equipment 3,036,000 (20,000) (46,000) 0
Gain (Loss) On Disposition Of Property Plant Equipment, Tax 638,000 (4,000) (10,000) 0
Gain (Loss) On Disposition Of Property Plant Equipment, After Tax 2,398,000 (16,000) (36,000) 0
Equity Securities, FV-NI, Unrealized Gain (Loss) (12,000) 112 29,000 (21,000)
Equity Securities, Fv-Ni, Unrealized Gain (Loss), Tax (3,000) 24 6,000 (4,000)
Equity Securities, Fv-Ni, Unrealized Gain (Loss), After Tax (9,000) 88 23,000 (17,000)
Bank Owned Life Insurance Income, Tax Charges 0 0    
Bank Owned Life Insurance Income, Tax (950,000) 0    
Bank Owned Life Insurance Income, after Tax 950,000 0    
Enhancement Fee Related to Purchase of Bank Owned Life Insurance, Before Tax (2,100,000) 0    
Enhancement Fee Related to Purchase of Bank Owned Life Insurance, Tax 0 0    
Enhancement Fee Related to Purchase of Bank Owned Life Insurance, after Tax (2,100,000) 0    
Adjusted Earnings, Before Income Tax 31,815,000 32,881,000 38,181,000 32,906,000
Adjusted Earnings, Tax 6,106,000 5,844,000 7,236,000 5,982,000
Adjusted Earnings, After Income Tax $ 25,709,000 $ 27,037,000 $ 30,945,000 $ 26,924,000
Adjusted Earnings Per Share, Diluted | $ / shares $ 1.67 $ 1.73 $ 1.95 $ 1.81
Stockholders' Equity, Average Amount Outstanding $ 248,494,000 $ 265,093,000 $ 301,226,000 $ 273,351,000
Business Combination, Acquisition Related Costs     0 7,708,000
Business Combination, Acquisition Related Costs, Tax     0 1,574,000
Business Combination, Acquisition Related Costs, After Tax     0 6,134,000
Loss On Prepayment Of Borrowings, Before Tax     0 1,636,000
Loss On Prepayment Of Borrowings, Tax     0 344,000
Loss On Prepayment Of Borrowings, After Tax     0 1,292,000
Debt Securities, Available-for-Sale, Gain (Loss)     (24,000) (169,000)
Debt Securities, Available-For-Sale, Gain (Loss), Tax     (5,000) (35,000)
Debt Securities, Available-For-Sale, Gain (Loss), After Tax     (19,000) (134,000)
Measure:: 1        
Pay vs Performance Disclosure        
Name 1.Core Return on Average Equity (as described above)      
Non-GAAP Measure Description

The Corporation has selected Core Return on Average Equity (Core ROAE) as its “Company-Selected Measure,” meaning the most important measure the Corporation used in linking compensation actually paid in 2023 to company performance. The Corporation’s calculations of Core ROAE reflect adjustments to earnings determined based on U.S. GAAP to eliminate amounts identified as “extraordinary occurrences” as described in the 2023 Annual Incentive Plan Award document. Reconciliation of the Corporation’s earnings under U.S. GAAP to the non-GAAP earnings amount included in Core ROAE for each year included in the Pay Versus Performance table is presented in the following table. Income tax has been allocated based on a marginal income tax rate of 21%, adjusted for the nondeductible portion of merger expenses.

 

    Year Ended December 31, 2023     Year Ended December 31, 2022  
    Income                 Diluted     Income                 Diluted  
    Before                 Earnings     Before                 Earnings  
    Income     Income           per     Income     Income           per  
    Tax     Tax     Net     Common     Tax     Tax     Net     Common  
(Dollars In Thousands, Except Per Share Data)   Provision     Provision     Income     Share     Provision     Provision     Income     Share  
Earnings Under U.S. GAAP   $ 30,483     $ 6,335     $ 24,148     $ 1.57     $ 32,350     $ 5,732     $ 26,618     $ 1.71  
Add: Amortization of Core Deposit Intangibles     408       86       322               439       92       347          
Net Realized Losses (Gains) on Available-for-Sale Debt Securities     3,036       638       2,398               (20 )     (4 )     (16 )        
Net (Gain) Loss on Marketable Equity Security     (12 )     (3 )     (9 )             112       24       88          
Tax charge on surrender of BOLI     0       (950 )     950               0       0       0          
Enhancement Fee Related to Purchase of BOLI     (2,100 )     0       (2,100 )             0       0       0          
Adjusted Earnings (Non-U.S. GAAP)   $ 31,815     $ 6,106     $ 25,709     $ 1.67     $ 32,881     $ 5,844     $ 27,037     $ 1.73  
Average Equity                   $ 248,494                             $ 265,093          
Core Return on Average Equity                     10.35 %                             10.20 %        
  

 

Year Ended December 31, 2021

  Year Ended December 31, 2020   Income        Diluted  Income        Diluted   Before        Earnings  Before        Earnings   Income  Income     per  Income  Income     per   Tax  Tax  Net  Common  Tax  Tax  Net  Common (Dollars In Thousands, Except Per Share Data) Provision  Provision  Income  Share  Provision  Provision  Income  Share Earnings Under U.S. GAAP $37,687  $7,133  $30,554  $1.92  $23,212  $3,990  $19,222  $1.30 Add: Merger-Related Expenses  0   0   0       7,708   1,574   6,134     Add: Loss on Prepayment of Borrowings  0   0   0       1,636   344   1,292     Add: Amortization of Core Deposit Intangibles  535   112   423       540   113   427     Less: Gain on Sale of Land  (46)  (10)  (36)      0   0   0     Net Realized Gains on Available-for-Sale Debt Securities  (24)  (5)  (19)      (169)  (35)  (134)    Net Loss on Marketable Equity Security  29   6   23       (21)  (4)  (17)    Adjusted Earnings (Non-U.S. GAAP) $38,181  $7,236  $30,945  $1.95  $32,906  $5,982  $26,924  $1.81 Average Equity         $301,226              $273,351 		     
Measure:: 2        
Pay vs Performance Disclosure        
Name 2.Core Return on Average Assets      
Measure:: 3        
Pay vs Performance Disclosure        
Name 3.Growth in Average Deposits, Excluding Brokered Deposits      
Measure:: 4        
Pay vs Performance Disclosure        
Name 4.Total Revenue      
Measure:: 5        
Pay vs Performance Disclosure        
Name 5.Efficiency Ratio      
Measure:: 6        
Pay vs Performance Disclosure        
Name 6.Total Wealth Management Revenue      
PEO | Total Net Adjustments For Pension [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount
PEO | Equity Awards Value In Summary Compensation Table (Grant Date Value)        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (132,301) (224,429) (213,754) (196,638)
PEO | Year-end Fair Value Of Awards Granted In The Current Fiscal Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 127,088 170,879 278,883 175,723
PEO | Change In Fair Value Of Outstanding And Unvested Awards Granted In Prior Fiscal Years [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (4,102) (21,457) 45,198 (52,243)
PEO | Change In Fair Value As Of Vesting Date Of Prior Year Awards Vested During Current Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 3,321 (6,693) 9,222 (1,905)
PEO | Adjustments For Equity Awards Failed To Meet Performance Conditions [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (91,107) (25,653) (18,250)
Non-PEO NEO | Total Net Adjustments For Pension [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (4,252) (14,535)
Non-PEO NEO | Equity Awards Value In Summary Compensation Table (Grant Date Value)        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (49,531) (85,869) (65,315) (76,024)
Non-PEO NEO | Year-end Fair Value Of Awards Granted In The Current Fiscal Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount 47,580 65,197 85,217 67,939
Non-PEO NEO | Change In Fair Value Of Outstanding And Unvested Awards Granted In Prior Fiscal Years [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (1,448) (8,644) 21,041 (20,526)
Non-PEO NEO | Change In Fair Value As Of Vesting Date Of Prior Year Awards Vested During Current Year [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount (1,071) (3,198) 5,662 (738)
Non-PEO NEO | Adjustments For Equity Awards Failed To Meet Performance Conditions [Member]        
Pay vs Performance Disclosure        
Adjustment to Compensation, Amount $ (26,303) $ (7,594) $ (7,204)