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SECURITIES | 6 Months Ended
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Jun. 30, 2025
SECURITIES |
SECURITIES | 5. SECURITIES Amortized cost and fair value of available-for-sale debt securities at June 30, 2025 and December 31, 2024 are summarized as follows. No allowance for credit losses was recorded at June 30, 2025 and December 31, 2024. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) |  | June 30, 2025
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Unrealized | ​ | Unrealized | ​ | ​ | ​
​ |  | Amortized |  | Holding |  | Holding |  | Fair
​ |  | Cost |  | Gains |  | Losses |  | Value
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Obligations of the U.S. Treasury | ​ | $ | 8,057 | ​ | $ | 0 | ​ | $ | (683) | ​ | $ | 7,374
Obligations of U.S. Government agencies | ​ | ​ | 9,790 | ​ | ​ | 0 | ​ | ​ | (794) | ​ | ​ | 8,996
Bank holding company debt securities | ​ | ​ | 28,961 | ​ | ​ | 0 | ​ | ​ | (3,194) | ​ | ​ | 25,767
Obligations of states and political subdivisions: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
Tax-exempt | ​ |  | 109,330 | ​ | ​ | 218 | ​ |  | (11,588) | ​ |  | 97,960
Taxable | ​ |  | 50,499 | ​ |  | 0 | ​ |  | (7,281) | ​ |  | 43,218
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
Residential pass-through securities | ​ |  | 100,257 | ​ |  | 158 | ​ |  | (6,885) | ​ |  | 93,530
Residential collateralized mortgage obligations | ​ |  | 53,465 | ​ |  | 271 | ​ |  | (2,607) | ​ |  | 51,129
Commercial mortgage-backed securities | ​ |  | 74,380 | ​ |  | 5 | ​ |  | (7,377) | ​ |  | 67,008
Private label commercial mortgage-backed securities | ​ | ​ | 5,578 | ​ | ​ | 6 | ​ | ​ | (4) | ​ | ​ | 5,580
Asset-backed securities, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Collateralized loan obligations | ​ | ​ | 5,500 | ​ |  | 0 | ​ |  | (10) | ​ |  | 5,490
Total available-for-sale debt securities | ​ | $ | 445,817 | ​ | $ | 658 | ​ | $ | (40,423) | ​ | $ | 406,052
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) |  | December 31, 2024
​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Unrealized | ​ | Unrealized | ​ | ​ | ​
​ |  | Amortized |  | Holding |  | Holding |  | Fair
​ |  | Cost |  | Gains |  | Losses |  | Value
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Obligations of the U.S. Treasury | ​ | $ | 8,067 | ​ | $ | 0 | ​ | $ | (949) | ​ | $ | 7,118
Obligations of U.S. Government agencies | ​ | ​ | 10,154 | ​ | ​ | 0 | ​ | ​ | (1,129) | ​ | ​ | 9,025
Bank holding company debt securities | ​ | ​ | 28,958 | ​ | ​ | 0 | ​ | ​ | (3,712) | ​ | ​ | 25,246
Obligations of states and political subdivisions: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
Tax-exempt | ​ |  | 111,995 | ​ | ​ | 238 | ​ |  | (10,931) | ​ |  | 101,302
Taxable | ​ |  | 51,147 | ​ |  | 0 | ​ |  | (8,641) | ​ |  | 42,506
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  |
Residential pass-through securities | ​ |  | 104,378 | ​ |  | 6 | ​ |  | (9,970) | ​ |  | 94,414
Residential collateralized mortgage obligations | ​ |  | 53,389 | ​ |  | 10 | ​ |  | (3,505) | ​ |  | 49,894
Commercial mortgage-backed securities | ​ |  | 73,470 | ​ |  | 0 | ​ |  | (8,969) | ​ |  | 64,501
Private label commercial mortgage-backed securities | ​ | ​ | 8,365 | ​ |  | 9 | ​ |  | 0 | ​ |  | 8,374
Total available-for-sale debt securities | ​ | $ | 449,923 | ​ | $ | 263 | ​ | $ | (47,806) | ​ | $ | 402,380
​ The following table presents gross unrealized losses and fair value of available-for-sale debt securities with unrealized loss positions aggregated by length of time that individual securities have been in a continuous unrealized loss position at June 30, 2025 and December 31, 2024 for which an allowance for credit losses has not been recorded: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
June 30, 2025 |  | Less Than 12 Months |  | 12 Months or More |  | Total
(In Thousands) | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
​ |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
Obligations of the U.S. Treasury | ​ | $ | 0 | ​ | $ | 0 | ​ | $ | 7,374 | ​ | ​ | (683) | ​ | $ | 7,374 | ​ | $ | (683)
Obligations of U.S. Government agencies | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 8,996 | ​ | ​ | (794) | ​ | ​ | 8,996 | ​ | ​ | (794)
Bank holding company debt securities | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 25,767 | ​ | ​ | (3,194) | ​ | ​ | 25,767 | ​ | ​ | (3,194)
Obligations of states and political subdivisions: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tax-exempt | ​ | ​ | 4,436 | ​ | ​ | (100) | ​ | ​ | 87,988 | ​ | ​ | (11,488) | ​ | ​ | 92,424 | ​ | ​ | (11,588)
Taxable | ​ |  | 0 | ​ | ​ | 0 | ​ | ​ | 43,158 | ​ | ​ | (7,281) | ​ | ​ | 43,158 | ​ | ​ | (7,281)
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Residential pass-through securities | ​ | ​ | 12,450 | ​ | ​ | (101) | ​ | ​ | 61,668 | ​ | ​ | (6,784) | ​ | ​ | 74,118 | ​ | ​ | (6,885)
Residential collateralized mortgage obligations | ​ |  | 6,312 | ​ | ​ | (39) | ​ | ​ | 25,058 | ​ | ​ | (2,568) | ​ | ​ | 31,370 | ​ | ​ | (2,607)
Commercial mortgage-backed securities | ​ |  | 0 | ​ | ​ | 0 | ​ | ​ | 64,647 | ​ | ​ | (7,377) | ​ | ​ | 64,647 | ​ | ​ | (7,377)
Private label commercial mortgage-backed securities | ​ | ​ | 3,447 | ​ | ​ | (4) | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 3,447 | ​ | ​ | (4)
Asset-backed securities, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Collateralized loan obligations | ​ | ​ | 2,490 | ​ | ​ | (10) | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 2,490 | ​ | ​ | (10)
Total | ​ | $ | 29,135 | ​ | $ | (254) | ​ | $ | 324,656 | ​ | $ | (40,169) | ​ | $ | 353,791 | ​ | $ | (40,423)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2024 |  | Less Than 12 Months |  | 12 Months or More |  | Total
(In Thousands) | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized | ​ | Fair | ​ | Unrealized
​ |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
Obligations of the U.S. Treasury | ​ | $ | 0 | ​ | $ | 0 | ​ | $ | 7,118 | ​ | ​ | (949) | ​ | $ | 7,118 | ​ | $ | (949)
Obligations of U.S. Government agencies | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 9,025 | ​ | ​ | (1,129) | ​ | ​ | 9,025 | ​ | ​ | (1,129)
Bank holding company debt securities | ​ | ​ | 0 | ​ | ​ | 0 | ​ | ​ | 25,246 | ​ | ​ | (3,712) | ​ | ​ | 25,246 | ​ | ​ | (3,712)
Obligations of states and political subdivisions: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Tax-exempt | ​ | ​ | 6,581 | ​ | ​ | (58) | ​ | ​ | 91,316 | ​ | ​ | (10,873) | ​ | ​ | 97,897 | ​ | ​ | (10,931)
Taxable | ​ |  | 0 | ​ | ​ | 0 | ​ | ​ | 42,506 | ​ | ​ | (8,641) | ​ | ​ | 42,506 | ​ | ​ | (8,641)
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Residential pass-through securities | ​ | ​ | 22,777 | ​ | ​ | (375) | ​ | ​ | 69,282 | ​ | ​ | (9,595) | ​ | ​ | 92,059 | ​ | ​ | (9,970)
Residential collateralized mortgage obligations | ​ |  | 19,586 | ​ | ​ | (156) | ​ | ​ | 27,157 | ​ | ​ | (3,349) | ​ | ​ | 46,743 | ​ | ​ | (3,505)
Commercial mortgage-backed securities | ​ |  | 2,314 | ​ | ​ | (38) | ​ | ​ | 62,187 | ​ | ​ | (8,931) | ​ | ​ | 64,501 | ​ | ​ | (8,969)
Total | ​ | $ | 51,258 | ​ | $ | (627) | ​ | $ | 333,837 | ​ | $ | (47,179) | ​ | $ | 385,095 | ​ | $ | (47,806)
​ As reflected in the table above, gross unrealized holding losses on available-for-sale debt securities totaled $40,423,000 at June 30, 2025 and $47,806,000 at December 31, 2024. At June 30, 2025, the Corporation did not have the intent to sell, nor is it more likely than not it will be required to sell, these securities before it is able to recover the amortized cost basis. The unrealized holding losses were consistent with increases in market interest rates that have occurred subsequent to the purchase of most of the securities. At June 30, 2025 and December 31, 2024, management performed an assessment for possible credit losses of the Corporation’s debt securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. At June 30, 2025 and December 31, 2024, all of the Corporation’s holdings of bank holding company debt securities, obligations of states and political subdivisions, private label commercial mortgage-backed securities and collateralized loan obligations were investment grade and there have been no payment defaults. Based on the results of the assessment, there was no ACL required on available-for-sale debt securities in an unrealized loss position at June 30, 2025 and December 31, 2024. There were no gross realized gains and losses from the sale of available-for-sale debt securities for the three and six months ended June 30, 2025 and 2024. The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of June 30, 2025. Actual maturities may differ from contractual maturities because counterparties may have the right to call or prepay obligations with or without call or prepayment penalties ​
​ | ​ | ​ | ​ | ​ | ​ | ​
(In Thousands) | ​ | June 30, 2025
​ | ​ | Amortized | ​ | Fair
​ |  | Cost |  | Value
Due in one year or less | ​ | $ | 4,740 | ​ | $ | 4,712
Due from one year through five years | ​ |  | 34,733 | ​ |  | 32,898
Due from five years through ten years | ​ |  | 80,493 | ​ |  | 73,131
Due after ten years | ​ |  | 86,671 | ​ |  | 72,574
Sub-total | ​ |  | 206,637 | ​ |  | 183,315
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | ​ |  |  | ​ |  | ​
Residential pass-through securities | ​ |  | 100,257 | ​ |  | 93,530
Residential collateralized mortgage obligations | ​ |  | 53,465 | ​ |  | 51,129
Commercial mortgage-backed securities | ​ |  | 74,380 | ​ |  | 67,008
Private label commercial mortgage-backed securities | ​ | ​ | 5,578 | ​ | ​ | 5,580
Asset-backed securities, | ​ | ​ | ​ | ​ | ​ | ​
Collateralized loan obligations | ​ | ​ | 5,500 | ​ | ​ | 5,490
Total | ​ | $ | 445,817 | ​ | $ | 406,052
​ The Corporation’s mortgage-backed securities, collateralized mortgage obligations and asset-backed securities have stated maturities that may differ from actual maturities due to borrowers’ ability to prepay obligations. Cash flows from such investments are dependent upon the performance of the underlying mortgage loans and are generally influenced by the level of interest rates. In the table above, mortgage-backed securities, collateralized mortgage obligations and asset-backed securities are shown in one period. Investment securities carried at $162,406,000 at June 30, 2025 and $190,949,000 at December 31, 2024 were pledged as collateral for public deposits, trusts and certain other deposits as provided by law. See Note 8 for information concerning securities pledged to secure borrowing arrangements. Equity Securities C&N Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB-Pittsburgh), which is one of 11 regional Federal Home Loan Banks. As a member, C&N Bank is required to purchase and maintain stock in FHLB-Pittsburgh. There is no active market for FHLB-Pittsburgh stock, and it must ordinarily be redeemed by FHLB-Pittsburgh in order to be liquidated. C&N Bank’s investment in FHLB-Pittsburgh stock, included in other assets in the consolidated balance sheets, was $14,392,000 at June 30, 2025 and $15,018,000 at December 31, 2024. The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at June 30, 2025 and December 31, 2024. In making this determination, management concluded that recovery of total outstanding par value, which equals the carrying value, is expected. The decision was based on review of financial information that FHLB-Pittsburgh has made publicly available. C&N Bank is a member of the Federal Reserve System. As a member, C&N Bank is required to purchase and maintain stock in the Federal Reserve Bank of Philadelphia. There is no active market for Federal Reserve Bank stock, and it must ordinarily be redeemed by the Federal Reserve Bank of Philadelphia in order to be liquidated. C&N Bank’s investment in Federal Reserve Bank stock, included in other assets in the consolidated balance sheets, was $6,321,000 at June 30, 2025 and $6,299,000 at December 31, 2024. The Corporation has a marketable equity security included in other assets in the consolidated balance sheets with a carrying value of $878,000 at June 30, 2025 and $863,000 December 31, 2024, consisting exclusively of one mutual fund. There was an unrealized loss on the mutual fund of $122,000 at June 30, 2025 and $137,000 at December 31, 2024. Changes in the unrealized gains or losses on this security, which are included in other noninterest income in the consolidated statements of income, were a gain of $2,000 in the second quarter of 2025 and a loss of $9,000 in the second quarter of 2024, a gain of $15,000 in the six-month period ended June 30, 2025 and a loss of $13,000 in the six-month period ended June 30, 2024.

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