EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)



	4TH		4TH
	QUARTER		QUARTER
	2023		2022		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	30,236	$	25,855	$	4,381	16.94	%
Interest Expense		10,642		3,563		7,079	198.68	%
Net Interest Income		19,594		22,292		(2,698)	(12.10)	%
Provision for Credit Losses		951		2,262		(1,311)	(57.96)	%
Net Interest Income After Provision for Credit Losses		18,643		20,030		(1,387)	(6.92)	%
Noninterest Income		8,720		6,110		2,610	42.72	%
Net Realized Losses on Available-for-sale Debt Securities		(3,042)		(1)		(3,041)	NM (2)
Noninterest Expense		18,399		16,587		1,812	10.92	%
Income Before Income Tax Provision		5,922		9,552		(3,630)	(38.00)	%
Income Tax Provision		1,661		1,773		(112)	(6.32)	%
Net Income	$	4,261	$	7,779	$	(3,518)	(45.22)	%
Net Income Attributable to Common Shares (1)	$	4,231	$	7,711	$	(3,480)	(45.13)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.28	$	0.50	$	(0.22)	(44.00)	%
Net Income - Diluted	$	0.28	$	0.50	$	(0.22)	(44.00)	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,175,013		15,374,579
Number of Shares Used in Computation - Diluted		15,175,013		15,377,161


	YEAR ENDED
	DECEMBER 31,
	2023		2022		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	113,504	$	92,647	$	20,857	22.51	%
Interest Expense		33,104		9,519		23,585	247.77	%
Net Interest Income		80,400		83,128		(2,728)	(3.28)	%
Provision for Credit Losses		186		7,255		(7,069)	(97.44)	%
Net Interest Income After Provision for Credit Losses		80,214		75,873		4,341	5.72	%
Noninterest Income		27,453		24,412		3,041	12.46	%
Net Realized (Losses) Gains on Available-for-sale Debt Securities		(3,036)		20		(3,056)	NM (2)
Noninterest Expense		74,148		67,955		6,193	9.11	%
Income Before Income Tax Provision		30,483		32,350		(1,867)	(5.77)	%
Income Tax Provision		6,335		5,732		603	10.52	%
Net Income	$	24,148	$	26,618	$	(2,470)	(9.28)	%
Net Income Attributable to Common Shares (1)	$	23,962	$	26,381	$	(2,419)	(9.17)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	1.57	$	1.71	$	(0.14)	(8.19)	%
Net Income - Diluted	$	1.57	$	1.71	$	(0.14)	(8.19)	%
Dividends Per Share	$	1.12	$	1.12	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,241,859		15,455,432
Number of Shares Used in Computation - Diluted		15,241,859		15,458,531

(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.

(2)

Not meaningful.

CONDENSED, CONSOLIDATED BALANCE SHEET DATA

(Dollars In Thousands)

(Unaudited)


	December 31,		December 31,
	2023		2022		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	56,878	$	55,048	$	1,830	3.32	%
Available-for-sale Debt Securities		415,755		498,033		(82,278)	(16.52)	%
Loans, Net		1,828,931		1,723,425		105,506	6.12	%
Bank-Owned Life Insurance		63,674		31,214		32,460	103.99	%
Bank Premises and Equipment, Net		21,632		21,574		58	0.27	%
Deferred Tax Asset, Net		17,441		20,884		(3,443)	(16.49)	%
Intangible Assets		54,974		55,382		(408)	(0.74)	%
Other Assets		56,299		48,747		7,552	15.49	%
TOTAL ASSETS	$	2,515,584	$	2,454,307	$	61,277	2.50	%

LIABILITIES
Deposits	$	2,014,806	$	1,997,593	$	17,213	0.86	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		172,211		142,409		29,802	20.93	%
Senior Notes, Net		14,831		14,765		66	0.45	%
Subordinated Debt, Net		24,717		24,607		110	0.45	%
Other Liabilities		26,638		25,608		1,030	4.02	%
TOTAL LIABILITIES		2,253,203		2,204,982		48,221	2.19	%

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive Loss		300,818		299,203		1,615	0.54	%
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities		(38,878)		(50,370)		11,492	(22.82)	%
Defined Benefit Plans		441		492		(51)	(10.37)	%
TOTAL STOCKHOLDERS' EQUITY		262,381		249,325		13,056	5.24	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,515,584	$	2,454,307	$	61,277	2.50	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	FOR THE
	THREE MONTHS ENDED						%
	December 31,						INCREASE
	2023			2022			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	4,261		$	7,779		(45.22)	%
Return on Average Assets (Annualized)		0.69	%		1.29	%	(46.51)	%
Return on Average Equity (Annualized)		7.03	%		12.90	%	(45.50)	%

	AS OF OR FOR THE
	YEAR ENDED						%
	December 31,						INCREASE
	2023			2022			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	24,148		$	26,618		(9.28)	%
Return on Average Assets		0.98	%		1.12	%	(12.50)	%
Return on Average Equity		9.72	%		10.04	%	(3.19)	%

BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,515,584		$	2,454,307		2.50	%
Available-for-Sale Debt Securities		415,755			498,033		(16.52)	%
Loans, Net		1,828,931			1,723,425		6.12	%
Allowance for Credit Losses:
Allowance for Credit Losses on Loans		19,208			16,615		15.61	%
Allowance for Credit Losses on Off-Balance Sheet Exposures		690			425		62.35	%
Deposits		2,014,806			1,997,593		0.86	%

OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	323,298		$	325,677		(0.73)	%
Trust Assets Under Management		1,188,082			1,063,615		11.70	%

STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.57		$	1.71		(8.19)	%
Net Income - Diluted	$	1.57		$	1.71		(8.19)	%
Dividends	$	1.12		$	1.12		0.00	%
Common Book Value	$	17.15		$	16.07		6.72	%
Tangible Common Book Value (a)	$	13.56		$	12.50		8.48	%
Market Value (Last Trade)	$	22.43		$	22.86		(1.88)	%
Market Value / Common Book Value		130.79	%		142.25	%	(8.06)	%
Market Value / Tangible Common Book Value		165.41	%		182.88	%	(9.55)	%
Price Earnings Multiple		14.29			13.37		6.88	%
Dividend Yield		4.99	%		4.90	%	1.84	%
Common Shares Outstanding, End of Period		15,295,135			15,518,819		(1.44)	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	AS OF OR FOR THE
	YEAR ENDED						%
	DECEMBER 31,						INCREASE
	2023			2022			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (a)		8.43	%		8.08	%	4.33	%
Nonperforming Assets / Total Assets		0.75	%		1.04	%	(27.88)	%
Allowance for Credit Losses / Total Loans		1.04	%		0.95	%	9.47	%
Total Risk Based Capital Ratio (b)		15.69	%		15.72	%	(0.19)	%
Tier 1 Risk Based Capital Ratio (b)		13.28	%		13.43	%	(1.12)	%
Common Equity Tier 1 Risk Based Capital Ratio (b)		13.28	%		13.43	%	(1.12)	%
Leverage Ratio (b)		9.88	%		10.11	%	(2.27)	%

AVERAGE BALANCES
Average Assets	$	2,462,856		$	2,372,788		3.80	%
Average Equity	$	248,494		$	265,093		(6.26)	%

EFFICIENCY RATIO (c)
Net Interest Income on a Fully Taxable-Equivalent
Basis (c)	$	81,319		$	84,354		(3.60)	%
Noninterest Income, Excluding Net Realized (Losses) Gains on Available-for-sale Debt Securities		27,453			24,412		12.46	%
Less: Enhancement Fee Included in Noninterest Income Related to Purchase of Bank-Owned Life Insurance		(2,100)			0
Total (1)	$	106,672		$	108,766		(1.93)	%
Noninterest Expense (2)	$	74,148		$	67,955		9.11	%
Efficiency Ratio = (2)/(1)		69.51	%		62.48	%	11.25	%

(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	$	2,515,584	$	2,454,307
Less: Intangible Assets, Primarily Goodwill		(54,974)		(55,382)
Tangible Assets	$	2,460,610	$	2,398,925
Total Stockholders' Equity	$	262,381	$	249,325
Less: Intangible Assets, Primarily Goodwill		(54,974)		(55,382)
Tangible Common Equity (3)	$	207,407	$	193,943

Common Shares Outstanding, End of Period (4)		15,295,135		15,518,819
Tangible Common Book Value per Share = (3)/(4)	$	13.56	$	12.50

(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:
	December 31,		September 30,		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,
	2023		2023		2023		2023		2022		2022		2022		2022
Interest income	$	30,236	$	29,118	$	28,011	$	26,139	$	25,855	$	23,710	$	21,309	$	21,773
Interest expense		10,642		9,455		7,649		5,358		3,563		2,831		1,684		1,441
Net interest income		19,594		19,663		20,362		20,781		22,292		20,879		19,625		20,332
Provision (credit) for credit losses		951		(1,225)		812		(352)		2,262		3,794		308		891
Net interest income after provision (credit) for credit losses		18,643		20,888		19,550		21,133		20,030		17,085		19,317		19,441
Noninterest income		8,720		6,489		6,635		5,609		6,110		5,651		6,830		5,821
Net realized (losses) gains on securities		(3,042)		0		(1)		7		(1)		20		(1)		2
Noninterest expense		18,399		17,940		18,722		19,087		16,587		17,443		17,039		16,886
Income before income tax provision		5,922		9,437		7,462		7,662		9,552		5,313		9,107		8,378
Income tax provision		1,661		1,846		1,419		1,409		1,773		858		1,618		1,483
Net income	$	4,261	$	7,591	$	6,043	$	6,253	$	7,779	$	4,455	$	7,489	$	6,895
Net income attributable to common shares	$	4,231	$	7,534	$	5,996	$	6,201	$	7,711	$	4,416	$	7,419	$	6,835
Basic earnings per common share	$	0.28	$	0.50	$	0.39	$	0.40	$	0.50	$	0.29	$	0.48	$	0.44
Diluted earnings per common share	$	0.28	$	0.50	$	0.39	$	0.40	$	0.50	$	0.29	$	0.48	$	0.44

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)


	As of:
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,			March 31,
	2023		2023		2023		2023		2022		2022		2022			2022
ASSETS
Cash & Due from Banks	$	56,878	$	52,658	$	51,762	$	52,212	$	55,048	$	64,044	$	69,187	$	114,346
Available-for-Sale Debt Securities		415,755		429,138		445,695		472,814		498,033		487,980		526,837		532,913
Loans, Net		1,828,931		1,812,585		1,795,454		1,726,793		1,723,425		1,674,076		1,643,057		1,523,919
Bank-Owned Life Insurance		63,674		31,557		31,504		31,352		31,214		31,074		30,941		30,805
Bank Premises and Equipment, Net		21,632		21,267		20,970		21,277		21,574		21,881		21,829		21,169
Deferred Tax Asset, Net		17,441		23,731		20,687		18,914		20,884		22,327		16,331		11,818
Intangible Assets		54,974		55,076		55,178		55,280		55,382		55,492		55,602		55,711
Other Assets		56,299		57,937		49,530		51,230		48,747		43,306		46,934		39,690
TOTAL ASSETS	$	2,515,584	$	2,483,949	$	2,470,780	$	2,429,872	$	2,454,307	$	2,400,180	$	2,410,718	$	2,330,371

LIABILITIES
Deposits (1)	$	2,014,806	$	2,024,997	$	2,010,118	$	1,916,040	$	1,997,593	$	2,039,595	$	1,964,270	$	1,960,952
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		172,211		148,529		146,694		192,097		142,409		57,920		126,833		22,938
Senior Notes, Net		14,831		14,814		14,798		14,781		14,765		14,749		14,733		14,717
Subordinated Debt, Net		24,717		24,689		24,661		24,634		24,607		24,580		24,553		33,031
Other Liabilities		26,638		30,715		26,392		26,752		25,608		24,547		21,710		22,525
TOTAL LIABILITIES		2,253,203		2,243,744		2,222,663		2,174,304		2,204,982		2,161,391		2,152,099		2,054,163

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss		300,818		300,031		296,190		298,365		299,203		295,258		294,621		296,386
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities		(38,878)		(60,278)		(48,536)		(43,271)		(50,370)		(56,766)		(36,307)		(20,492)
Defined Benefit Plans		441		452		463		474		492		297		305		314
TOTAL STOCKHOLDERS' EQUITY		262,381		240,205		248,117		255,568		249,325		238,789		258,619		276,208
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,515,584	$	2,483,949	$	2,470,780	$	2,429,872	$	2,454,307	$	2,400,180	$	2,410,718	$	2,330,371

(1) Brokered Deposits (Included in Total Deposits)	$	64,369	$	62,512	$	70,653	$	15,117	$	20,983	$	32,375	$	35,974	$	33,748

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)


	December 31, 2023				September 30, 2023				December 31, 2022
	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	12,325	$	11,290	$	33,938	$	30,557	$	35,166	$	31,836
Obligations of U.S. Government agencies		11,119		9,946		21,372		18,796		25,938		23,430
Bank holding company debt securities		28,952		23,500		28,950		22,311		28,945		25,386
Obligations of states and political subdivisions:
Tax-exempt		113,464		104,199		123,598		104,453		146,149		132,623
Taxable		58,720		50,111		65,408		53,457		68,488		56,812
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		105,549		95,405		109,102		94,469		112,782		99,941
Residential collateralized mortgage obligations		50,212		46,462		38,267		33,397		44,868		40,296
Commercial mortgage-backed securities		76,412		66,682		76,627		63,672		91,388		79,686
Private label commercial mortgage-backed securities		8,215		8,160		8,178		8,026		8,070		8,023
Total Available-for-Sale Debt Securities	$	464,968	$	415,755	$	505,440	$	429,138	$	561,794	$	498,033

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)


	December 31,		September 30,		December 31,
	2023		2023		2022
Commercial real estate - non-owner occupied
Non-owner occupied	$	499,104	$	503,434	$	454,386
Multi-family (5 or more) residential		64,076		61,061		55,406
1-4 Family - commercial purpose		174,162		172,792		165,805
Total commercial real estate - non-owner occupied		737,342		737,287		675,597
Commercial real estate - owner occupied		237,246		231,112		205,910
All other commercial loans:
Commercial and industrial		78,832		80,960		95,368
Commercial lines of credit		117,236		122,189		141,444
Political subdivisions		79,031		80,415		86,663
Commercial construction and land		104,123		91,014		60,892
Other commercial loans		20,471		21,125		25,710
Total all other commercial loans		399,693		395,703		410,077
Residential mortgage loans:
1-4 Family - residential		389,262		385,777		363,005
1-4 Family residential construction		24,452		24,236		30,577
Total residential mortgage		413,714		410,013		393,582
Consumer loans:
Consumer lines of credit (including HELCs)		41,503		37,736		36,650
All other consumer		18,641		18,819		18,224
Total consumer		60,144		56,555		54,874
Total		1,848,139		1,830,670		1,740,040
Less: allowance for credit losses on loans		(19,208)		(18,085)		(16,615)
Loans, net	$	1,828,931	$	1,812,585	$	1,723,425

ADJUSTMENTS TO GROSS AMORTIZED COST OF LOANS

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2023		2023		2022		2023		2022
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(1,016)	$	(1,000)	$	(861)	$	(916)	$	(637)
Accretion (amortization) recognized in interest income		46		(16)		(55)		(54)		(279)
Adjustments to gross amortized cost of loans at end of period	$	(970)	$	(1,016)	$	(916)	$	(970)	$	(916)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(1,299)	$	(1,446)	$	(2,095)	$	(1,840)	$	(3,335)
Accretion recognized in interest income		136		147		255		677		1,495
Adjustments to gross amortized cost of loans at end of period	$	(1,163)	$	(1,299)	$	(1,840)	$	(1,163)	$	(1,840)

PAST DUE LOANS AND NONPERFORMING ASSETS

(Dollars In Thousands)


	December 31,			September 30,			December 31,
	2023			2023			2022
Loans individually evaluated with a valuation allowance	$	7,786		$	7,861		$	3,460
Loans individually evaluated without a valuation allowance		3,478			4,146			14,871
Purchased credit impaired loans		0			0			1,027
Total individually evaluated loans	$	11,264		$	12,007		$	19,358

Total loans past due 30-89 days and still accruing	$	9,275		$	3,675		$	7,079

Nonperforming assets:
Purchased credit impaired loans	$	0		$	0		$	1,027
Other nonaccrual loans		15,177			15,501			22,058
Total nonaccrual loans		15,177			15,501			23,085
Total loans past due 90 days or more and still accruing		3,190			1,292			2,237
Total nonperforming loans		18,367			16,793			25,322
Foreclosed assets held for sale (real estate)		478			633			275
Total nonperforming assets	$	18,845		$	17,426		$	25,597

Total nonperforming loans as a % of total loans		0.99	%		0.92	%		1.46	%
Total nonperforming assets as a % of assets		0.75	%		0.70	%		1.04	%
Allowance for credit losses as a % of total loans		1.04	%		0.99	%		0.95	%

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LOANS

(In Thousands)


	3 Months		3 Months		Year		Year
	Ended		Ended		Ended		Ended
	December 31,		September 30,		December 31,		December 31,
	2023		2023		2023		2022
Balance, beginning of period	$	18,085	$	19,056	$	16,615	$	13,537
Adoption of ASU 2016-13 (CECL)		0		0		2,104		0
Charge-offs		(57)		(98)		(356)		(4,245)
Recoveries		18		60		92		68
Net charge-offs		(39)		(38)		(264)		(4,177)
Provision (credit) for credit losses on loans		1,162		(933)		753		7,255
Balance, end of period	$	19,208	$	18,085	$	19,208	$	16,615

ANALYSIS OF THE PROVISION (CREDIT) FOR CREDIT LOSSES

(In Thousands)


	3 Months		3 Months		Year		Year
	Ended		Ended		Ended		Ended
	December 31,		September 30,		December 31,		December 31,
	2023		2023		2023		2022
Provision (credit) for credit losses:
Loans receivable	$	1,162	$	(933)	$	753	$	7,255
Off-balance sheet exposures (1)		(211)		(292)		(567)		0
Total provision (credit) for credit losses	$	951	$	(1,225)	$	186	$	7,255

(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						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2023		2023		2022		2023		2022
INTEREST INCOME
Interest-bearing due from banks	$	447	$	345	$	310	$	1,379	$	645
Available-for-sale debt securities:
Taxable		2,115		2,077		2,217		8,555		8,360
Tax-exempt		654		681		910		2,815		3,721
Total available-for-sale debt securities		2,769		2,758		3,127		11,370		12,081
Loans receivable:
Taxable		26,529		25,526		21,979		98,843		77,641
Paycheck Protection Program		3		3		59		11		958
Tax-exempt		663		680		675		2,756		2,471
Total loans receivable		27,195		26,209		22,713		101,610		81,070
Other earning assets		24		18		8		64		77
Total Interest Income		30,435		29,330		26,158		114,423		93,873

INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		2,809		2,360		844		7,668		1,833
Money market		2,032		1,669		818		5,686		2,088
Savings		57		60		66		243		257
Time deposits		3,742		3,175		898		10,636		2,460
Total interest-bearing deposits		8,640		7,264		2,626		24,233		6,638
Borrowed funds:
Short-term		322		677		127		3,240		429
Long-term - FHLB advances		1,329		1,164		460		4,230		896
Senior notes, net		120		120		120		479		477
Subordinated debt, net		231		230		230		922		1,079
Total borrowed funds		2,002		2,191		937		8,871		2,881
Total Interest Expense		10,642		9,455		3,563		33,104		9,519

Net Interest Income	$	19,793	$	19,875	$	22,595	$	81,319	$	84,354

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						Year Ended
	December 31,		September		December 31,		December 31,		December 31,
	2023		2023		2022		2023		2022
Net Interest Income Under U.S. GAAP	$	19,594	$	19,663	$	22,292	$	80,400	$	83,128
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		74		84		167		388		720
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		125		128		136		531		506
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	19,793	$	19,875	$	22,595	$	81,319	$	84,354

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
	12/31/2023		Return/		9/30/2023		Return/		12/31/2022		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	37,555	4.72	%	$	31,729	4.31	%	$	40,288	3.05	%
Available-for-sale debt securities, at amortized cost:
Taxable		372,797	2.25	%		379,709	2.17	%		415,538	2.12	%
Tax-exempt		121,143	2.14	%		124,435	2.17	%		146,466	2.46	%
Total available-for-sale debt securities		493,940	2.22	%		504,144	2.17	%		562,004	2.21	%
Loans receivable:
Taxable		1,751,926	6.01	%		1,729,835	5.85	%		1,609,563	5.42	%
Paycheck Protection Program		121	9.84	%		137	8.69	%		1,044	22.42	%
Tax-exempt		84,349	3.12	%		87,026	3.10	%		88,583	3.02	%
Total loans receivable		1,836,396	5.88	%		1,816,998	5.72	%		1,699,190	5.30	%
Other earning assets		1,534	6.21	%		1,468	4.86	%		1,048	3.03	%
Total Earning Assets		2,369,425	5.10	%		2,354,339	4.94	%		2,302,530	4.51	%
Cash		21,019				22,068				23,154
Unrealized loss on securities		(72,605)				(63,110)				(70,583)
Allowance for credit losses		(18,575)				(19,540)				(16,612)
Bank-owned life insurance		32,980				31,559				31,127
Bank premises and equipment		21,532				21,132				21,752
Intangible assets		55,025				55,125				55,433
Other assets		78,558				74,483				64,341
Total Assets	$	2,487,359			$	2,476,056			$	2,411,142

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	521,432	2.14	%	$	512,074	1.83	%	$	478,012	0.70	%
Money market		354,854	2.27	%		340,618	1.94	%		427,378	0.76	%
Savings		218,810	0.10	%		232,240	0.10	%		262,269	0.10	%
Time deposits		429,898	3.45	%		406,436	3.10	%		295,920	1.20	%
Total interest-bearing deposits		1,524,994	2.25	%		1,491,368	1.93	%		1,463,579	0.71	%
Borrowed funds:
Short-term		24,196	5.28	%		49,157	5.46	%		14,229	3.54	%
Long-term - FHLB advances		132,089	3.99	%		119,395	3.87	%		62,998	2.90	%
Senior notes, net		14,822	3.21	%		14,808	3.22	%		14,757	3.23	%
Subordinated debt, net		24,704	3.71	%		24,676	3.70	%		24,594	3.71	%
Total borrowed funds		195,811	4.06	%		208,036	4.18	%		116,578	2.73	%
Total Interest-bearing Liabilities		1,720,805	2.45	%		1,699,404	2.21	%		1,580,157	0.89	%
Demand deposits		491,944				498,724				563,567
Other liabilities		32,122				30,749				26,171
Total Liabilities		2,244,871				2,228,877				2,169,895
Stockholders' equity, excluding accumulated other comprehensive loss		299,401				296,577				296,717
Accumulated other comprehensive loss		(56,913)				(49,398)				(55,470)
Total Stockholders' Equity		242,488				247,179				241,247
Total Liabilities and Stockholders' Equity	$	2,487,359			$	2,476,056			$	2,411,142
Interest Rate Spread			2.65	%			2.73	%			3.62	%
Net Interest Income/Earning Assets			3.31	%			3.35	%			3.89	%

Total Deposits (Interest-bearing and Demand)	$	2,016,938			$	1,990,092			$	2,027,146

(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)


	Year				Year
	Ended		Rate of		Ended		Rate of
	12/31/2023		Return/		12/31/2022		Return/
	Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds%
EARNING ASSETS
Interest-bearing due from banks	$	32,709	4.22	%	$	51,407	1.25	%
Available-for-sale debt securities, at amortized cost:
Taxable		389,456	2.20	%		410,033	2.04	%
Tax-exempt		125,920	2.24	%		148,344	2.51	%
Total available-for-sale debt securities		515,376	2.21	%		558,377	2.16	%
Loans receivable:
Taxable		1,703,697	5.80	%		1,533,417	5.06	%
Paycheck Protection Program		142	7.75	%		8,406	11.40	%
Tax-exempt		88,310	3.12	%		86,271	2.86	%
Total loans receivable		1,792,149	5.67	%		1,628,094	4.98	%
Other earning assets		1,383	4.63	%		2,321	3.32	%
Total Earning Assets		2,341,617	4.89	%		2,240,199	4.19	%
Cash		22,108				22,685
Unrealized loss on securities		(63,118)				(38,784)
Allowance for credit losses		(18,498)				(14,962)
Bank-owned life insurance		31,808				30,925
Bank premises and equipment		21,330				21,559
Intangible assets		55,176				55,599
Other assets		72,433				55,567
Total Assets	$	2,462,856			$	2,372,788

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	488,761	1.57	%	$	443,107	0.41	%
Money market		347,130	1.64	%		443,084	0.47	%
Savings		238,760	0.10	%		257,156	0.10	%
Time deposits		381,488	2.79	%		285,264	0.86	%
Total interest-bearing deposits		1,456,139	1.66	%		1,428,611	0.46	%
Borrowed funds:
Short-term		62,926	5.15	%		21,766	1.97	%
Long-term - FHLB advances		110,943	3.81	%		40,194	2.23	%
Senior notes, net		14,798	3.24	%		14,733	3.24	%
Subordinated debt, net		24,662	3.74	%		27,116	3.98	%
Total borrowed funds		213,329	4.16	%		103,809	2.78	%
Total Interest-bearing Liabilities		1,669,468	1.98	%		1,532,420	0.62	%
Demand deposits		515,787				551,801
Other liabilities		29,107				23,474
Total Liabilities		2,214,362				2,107,695
Stockholders' equity, excluding accumulated other comprehensive loss		297,894				295,447
Accumulated other comprehensive loss		(49,400)				(30,354)
Total Stockholders' Equity		248,494				265,093
Total Liabilities and Stockholders' Equity	$	2,462,856			$	2,372,788
Interest Rate Spread			2.91	%			3.57	%
Net Interest Income/Earning Assets			3.47	%			3.77	%

Total Deposits (Interest-bearing and Demand)	$	1,971,926			$	1,980,412

(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.

COMPARISON OF NONINTEREST INCOME

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2023		2023		2022		2023		2022
Trust revenue	$	1,913	$	1,919	$	1,749	$	7,413	$	6,994
Brokerage and insurance revenue		486		394		507		1,675		2,291
Service charges on deposit accounts		1,446		1,443		1,357		5,567		5,019
Interchange revenue from debit card transactions		1,045		1,098		1,098		4,160		4,148
Net gains from sales of loans		273		237		24		723		757
Loan servicing fees, net		136		154		203		602		960
Increase in cash surrender value of life insurance		2,253		160		140		2,703		545
Other noninterest income		1,168		1,084		1,032		4,610		3,698
Total noninterest income, excluding realized gains (losses) on securities, net	$	8,720	$	6,489	$	6,110	$	27,453	$	24,412

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2023		2023		2022		2023		2022
Salaries and employee benefits	$	11,113	$	10,878	$	10,135	$	44,195	$	41,833
Net occupancy and equipment expense		1,364		1,268		1,316		5,357		5,533
Data processing and telecommunications expenses		1,923		1,823		1,744		7,582		6,806
Automated teller machine and interchange expense		308		504		473		1,682		1,601
Pennsylvania shares tax		392		403		493		1,602		1,956
Professional fees		509		487		515		2,497		2,005
Other noninterest expense		2,790		2,577		1,911		11,233		8,221
Total noninterest expense	$	18,399	$	17,940	$	16,587	$	74,148	$	67,955

NON-OWNER OCCUPIED COMMERCIAL REAL ESTATE

(In Thousands)


Loan Type	December 31,		% of Non-owner		% of
	2023		Occupied CRE		Total Loans
Industrial	$	109,160	21.9	%	5.9	%
Retail		94,824	19.0	%	5.1	%
Office		94,341	18.9	%	5.1	%
Hotels		73,094	14.6	%	4.0	%
Mixed Use		59,687	12.0	%	3.2	%
Other		67,998	13.6	%	3.7	%
Total Non-owner Occupied CRE Loans	$	499,104
Total Gross Loans	$	1,848,139

LIQUIDITY INFORMATION

(In Thousands)


Available Credit Facilities	Outstanding						Available						Total Credit
	Dec. 31,		September 30,		Dec. 31,		Dec. 31,		September 30,		Dec. 31,		Dec. 31,		September 20,		Dec. 31,
	2023		2023		2022		2023		2023		2022		2023		2023		2022
Federal Home Loan Bank of Pittsburgh	$	189,021	$	165,951	$	150,099	$	737,824	$	752,847	$	689,279	$	926,845	$	918,798	$	839,378
Federal Reserve Bank Discount Window		0		0		0		19,982		20,766		23,107		19,982		20,766		23,107
Other correspondent banks		0		0		0		95,000		95,000		95,000		95,000		95,000		95,000
Total credit facilities	$	189,021	$	165,951	$	150,099	$	852,806	$	868,613	$	807,386	$	1,041,827	$	1,034,564	$	957,485


Uninsured Deposits Information	December 31,			September 30,			December 31,
	2023			2023			2022
Total Deposits - C&N Bank	$	2,030,909		$	2,040,506		$	2,016,666

Estimated Total Uninsured Deposits	$	592,206		$	602,957		$	689,435
Portion of Uninsured Deposits that are
Collateralized		151,031			188,927			205,886
Uninsured and Uncollateralized Deposits	$	441,175		$	414,030		$	483,549

Uninsured and Uncollateralized Deposits as
a % of Total Deposits		21.7	%		20.3	%		24.0	%

Available Funding from Credit Facilities	$	852,806		$	868,613		$	807,386
Fair Value of Available-for-sale Debt
Securities in Excess of Pledging Obligations		256,058			227,667			272,475
Highly Liquid Available Funding	$	1,108,864		$	1,096,280		$	1,079,861

Highly Liquid Available Funding as a % of
Uninsured Deposits		187.2	%		181.8	%		156.6	%

Highly Liquid Available Funding as a % of
Uninsured and Uncollateralized Deposits		251.3	%		264.8	%		223.3	%