Contact: Charity Frantz
April 29, 2026 570-724-0225
charityf@cnbankpa.com
C&N ANNOUNCES FIRST QUARTER 2026 UNAUDITED FINANCIAL RESULTS FOR IMMEDIATE RELEASE:Wellsboro, PA - Citizens & Northern Corporation ("C&N") (NASDAQ: CZNC) announced its unaudited, consolidated financial results for the three-month period ended March 31, 2026. C&N's principal activity is community banking, and its largest subsidiary is Citizens & Northern Bank ("C&N Bank").
Brad Scovill, C&N's President and CEO, commented, "Our first quarter net income of $0.02 per share was well below expectations, mainly due to a significant charge related to one of our largest loans. Having said that, our fundamentals remain very strong, with solid PPNR performance highlighted by 14 basis points of net interest margin expansion and strong capital and liquidity profiles. While our non-performing asset level is somewhat elevated in comparison to that of our peers, we maintain a comparatively higher allowance for credit losses as a percentage of total loans, and we continue to make methodical progress in executing prudent workout strategies for all of our larger nonperforming loans. Looking forward, we remain confident in our ability to execute our strategy for profitable growth."
Highlights:Net income was $273,000, or $0.02 diluted earnings per share for the first quarter of 2026 as compared to $4,466,000, or $0.25 diluted earnings per share for the fourth quarter 2025, and $6,293,000, or $0.41 per diluted share in the first quarter 2025. As described in more detail below, first quarter 2026 earnings were negatively impacted by an elevated provision for credit losses and earnings for the fourth quarter 2025 were impacted by merger-related expenses resulting from C&N's acquisition of Susquehanna Community Financial, Inc. ("Susquehanna") effective October 1, 2025. Excluding merger-related expenses, net of taxes, adjusted earnings (non-GAAP) totaled $9,966,000 or $0.56 per diluted share for the fourth quarter of 2025. See Table 13 for additional information.
Pre-tax, pre-provision net revenue ("PPNR") was $14,142,000 for the first quarter 2026 as compared to $14,445,000 for the fourth quarter 2025 and $8,151,000 for the first quarter 2025. PPNR measures the strength of C&N's core earnings from recurring operations independent of credit volatility. The higher PPNR results in the two most recent quarters include the net impact of growth in net interest income, noninterest income and noninterest expense resulting from C&N's acquisition of Susquehanna on October 1, 2025. PPNR includes net interest income and noninterest income, net of noninterest expense, but excludes the provision for credit losses, realized gains or losses on securities, merger-related expenses and other nonrecurring items included in earnings. See Table 12 for additional information.
The provision for credit losses was $13,602,000 in the first quarter 2026 as compared to $1,320,000 in the fourth quarter 2025 and $236,000 in the first quarter 2025. The increase in the first quarter 2026 provision was primarily driven by the impact on the allowance for credit losses ("ACL") of an increase in net charge-offs to $10,808,000 as compared to
$884,000 in the fourth quarter of 2025 and $91,000 in the first quarter of 2025.
The significant increase in charge-offs in the first quarter of 2026 is due to a non-owner occupied, commercial real estate loan originated in 2022 in the amount of $24 million of which $7,200,000 was participated with another financial institution. The loan is secured by a first lien on the leasehold interests of an approximately 190,000 square foot Class A office property with multiple buildings and tenants, located in Bucks County, PA. The loss of a large tenant as well as cash flow requirements of the borrower's other properties (which C&N has not financed) caused the loan to be downgraded to substandard and placed in nonaccrual status as of March 31, 2026. C&N obtained an updated appraisal in April 2026 which was significantly lower than the original appraisal when the loan was originated, resulting in a charge-off of $10,056,000. At March 31, 2026, the amortized cost basis of the loan, net of the partial charge-off, is
$5,836,000. Management believes the property's location and condition provide an opportunity for recovery of value in the future.
The ACL was 1.42% of gross loans receivable at March 31, 2026, up from 1.32% at December 31, 2025 and 1.06% at March 31, 2025, as the higher level of net charge-offs in the first quarter 2026 impacted the portion of C&N's ACL determined based on historical loss experience.
1
Total nonperforming assets were 1.33% of total assets at March 31, 2026, up from 1.06% at December 31, 2025 and 0.93% at March 31, 2025. The increase in nonperforming assets in the first quarter 2026 included the impact of classifying the nonowner occupied commercial real estate loan referenced above as nonaccrual at March 31, 2026.
Net interest income for the first quarter 2026 decreased $19,000 from the total for the fourth quarter 2025 and increased
$8,479,000 over the total for the first quarter 2025. The net interest margin increased 14 basis points to 3.98% in the first quarter 2026 from 3.84% for the fourth quarter 2025 and increased 60 basis points from 3.38% for the first quarter 2025.
Total loans receivable were $30,485,000 higher at March 31, 2026 compared to December 31, 2025. Average loans receivable increased 0.8% during the first quarter 2026 from the fourth quarter 2025. Average loans receivable were higher by 24.5% for the first quarter 2026 as compared to the first quarter 2025.
Deposits totaled $2,600,053,000 at March 31, 2026, up $35,337,000 from December 31, 2025. Average total deposits decreased 2.6% during the first quarter 2026 from the fourth quarter 2025, mainly due to a seasonal reduction in balances held by municipal customers. Average total deposits were 24.2% higher for the first quarter 2026 as compared to the first quarter 2025.
At March 31, 2026, C&N's highly liquid sources of available funds totaled $1.363 billion, or 159.3% of uninsured
deposits and 199.1% of uninsured and uncollateralized deposits.
First Quarter 2026 as Compared to Fourth Quarter 2025Net income was $273,000, or $0.02 per diluted share, for the first quarter 2026 as compared to $4,466,000, or $0.25 per diluted share, for the fourth quarter 2025. As described in the Highlights section, first quarter 2026 earnings were negatively impacted by an elevated provision for credit losses and fourth quarter 2025 earnings were impacted by merger-related expenses resulting from the acquisition of Susquehanna. Excluding merger-related expenses, net of taxes, adjusted earnings (non-GAAP) totaled $9,966,000 or $0.56 per diluted share for the fourth quarter of 2025. See Table 13 for additional information. Other significant variances were as follows:
Net interest income of $28,454,000 in the first quarter 2026 decreased $19,000 from the fourth quarter 2025 result. Average total earning assets decreased $36,883,000 from the prior quarter, as average interest-bearing due from banks decreased $57,255,000. Average total deposits decreased $68,657,000 while average total borrowed funds increased $33,777,000 in the first quarter 2026 as compared to the total for the prior quarter. The net interest margin was 3.98% in the first quarter 2026, up 0.14% from 3.84% in the fourth quarter 2025. Accretion of purchase accounting valuation adjustments related to the Susquehanna merger had a net positive impact on net interest income of $765,000 in the first quarter 2026 and $789,000 in the fourth quarter. The net interest spread increased 0.14%, as the average yield on earning assets increased 0.08% and the average rate on interest-bearing liabilities decreased 0.06%.
Noninterest income excluding realized gains on available-for-sale securities, of $8,169,000 in the first quarter 2026 decreased $191,000 from the fourth quarter 2025. Significant variances included the following:
Other noninterest income of $1,586,000 increased $269,000 including a conversion assistance payment of $241,000 received related to merger integration of the wealth management platform.
Net gains from sale of loans of $370,000 decreased $188,000 reflecting a decrease in volume of residential mortgage loans sold.
Brokerage and insurance revenue of $588,000 decreased $183,000 due to a decrease in sales volume.
Loan servicing fees, net, of $108,000 decreased $117,000, as the fair value of servicing rights decreased
$172,000 in first quarter 2026 as compared to a decrease of $58,000 in fourth quarter 2025.
Noninterest expense of $22,712,000 in the first quarter of 2026 decreased $7,447,000 from the fourth quarter 2025 total. The fourth quarter 2025 included merger-related expenses of $6,891,000 related to the Susquehanna acquisition and also included professional fees totaling $757,000 related to contract renegotiations with technology core system and operations providers with no comparable amounts in first quarter of 2026. In the first quarter 2026, net occupancy and equipment expense was $229,000 higher than in fourth quarter 2025, including increases of $151,000 in snow removal and $55,000 in light and power expenses while data processing
and telecommunications expenses was $302,000 lower than in fourth quarter 2025 reflecting lower software license expense.
The income tax provision of $62,000, or 18.5% of pre-tax income for the first quarter 2026, decreased $864,000 from $926,000, or 17.2% of pre-tax income, for the fourth quarter 2025 reflecting a decrease in pre-tax income for the quarter.
First Quarter 2026 as Compared to First Quarter 2025First quarter 2026 net income was $273,000, or $0.02 per diluted share, as compared to $6,293,000, or $0.41 per diluted share, in the first quarter 2025. As described in the Highlights section, first quarter 2026 earnings were impacted by an elevated provision for credit losses. Other significant variances were as follows:
Net interest income of $28,454,000 in the first quarter 2026 was $8,479,000 higher than in the first quarter 2025, including the benefit of income from growth in net earning assets resulting from the Susquehanna merger. The net interest margin increased to 3.98% in the first quarter 2026 from 3.38% in the first quarter 2025. The interest rate spread increased 0.76%, as the average yield on earning assets increased 0.31% while the average rate on interest-bearing liabilities decreased 0.45%. Average total earning assets increased $505,810,000 from the first quarter 2025, as average total loans receivable increased $465,531,000, including the impact of loans acquired from Susquehanna, and average available-for-sale debt securities increased $81,543,000 while average interest-bearing due from banks decreased $42,380,000. Average total deposits increased $499,043,000, including the impact of deposits assumed from Susquehanna, while average brokered deposits decreased $24,333,000.
Noninterest income, excluding gains on available-for-sale debt securities, of $8,169,000 in the first quarter 2026 increased $1,161,000 from the first quarter 2025 result. Significant variances included the following:
Other noninterest income of $1,586,000 increased $454,000, including a conversion assistance payment of $241,000 received related to the merger integration of the wealth management platform, an increase of $94,000 in tax credit income and an increase of $78,000 in dividends on Federal Home Loan Bank of Pittsburgh stock.
Interchange revenue from debit card transactions of $1,267,000 increased $231,000, including an increase in volume-related incentive income.
Service charges on deposit accounts of $1,650,000 increased $210,000 reflecting an increase in volume of fees.
Net gains from sale of loans of $370,000 increased $165,000, reflecting an increase in volume of residential mortgage loans sold and includes the impact of $133,000 in net gains from sale of loans resulting from the Susquehanna acquisition.
Noninterest expense of $22,712,000 in the first quarter 2026 increased $3,669,000 from the first quarter 2025 result, reflecting the impact of the Susquehanna acquisition. Other significant variances included the following:
Salaries and employee benefits expense of $13,201,000 increased $1,442,000, including the impact of the Susquehanna acquisition while cash and stock-based incentive compensation decreased $219,000.
Other noninterest expense of $3,364,000 increased $1,010,000 from the first quarter 2025. Within this category, significant variances included the following:
Core deposit intangible amortization expense increased $708,000, related to core deposits assumed from Susquehanna.
FDIC insurance expense increased $243,000 from the first quarter of 2025, reflecting the impact of the Susquehanna acquisition.
Legal fees unrelated to merger activity decreased $104,000 from the first quarter of 2025.
Net occupancy and equipment expense was $432,000 higher than in first quarter 2025, including
$337,000 related to the Susquehanna acquisition and increases in snow removal, light and power and repairs and maintenance expenses.
Data processing and telecommunications expenses were $378,000 higher than in the first quarter 2025 reflecting higher software license expense of $179,000 and higher internet banking expenses of
$170,000, related to the Susquehanna acquisition.
The income tax provision of $62,000, or 18.5% of pre-tax income for the first quarter 2026 decreased $1,349,000 from $1,411,000, or 18.3% of pre-tax income, for the first quarter 2025 reflecting a decrease in pre-tax income for the quarter.
Other Information:
Changes in other unaudited financial information were as follows:
Total assets were $3,164,340,000 at March 31, 2026 up from $3,132,469,000 at December 31, 2025 and $2,609,228,000 at March 31, 2025.
Cash and due from banks totaled $54,798,000 at March 31, 2026, up from $46,056,000 at December 31, 2025 and down from $114,738,000 at March 31, 2025.
The fair value of available-for-sale debt securities at March 31, 2026 was lower than the amortized cost basis by
$32,175,000 or 6.1%. In comparison, the aggregate unrealized loss position was $29,685,000 or 5.5% lower than the amortized cost basis at December 31, 2025 and $ 42,374,000 or 9.4% lower than the amortized cost basis at March 31, 2025. The volatility in the fair value of the portfolio has resulted from changes in interest rates. Management reviewed the available-for-sale debt securities as of March 31, 2026 and concluded, as of such date, that there were no credit-related declines in fair value and no allowance for credit losses was recorded as of March 31, 2026.
Gross loans receivable totaled $2,384,850,000 at March 31, 2026, up $30,485,000 from total loans at December 31, 2025 and $486,418,000 from total loans at March 31, 2025. On October 1, 2025, $393,587,000 of gross loans receivable, net of purchase accounting adjustments were recorded pursuant to the acquisition of Susquehanna. In comparing outstanding balances at March 31, 2026 and 2025, total commercial loans were up $393,876,000 or 27.5%, total outstanding consumer loans increased $48,879,000 or 74.0% and total residential mortgage loans increased $43,663,000 or 10.9%. The outstanding balance of residential mortgage loans originated and serviced by C&N that have been sold to third parties was $451,162,000 at March 31, 2026, up $121,401,000 from the total at March 31, 2025, reflecting the impact of servicing obligations assumed on such loans that had been sold by Susquehanna prior to the merger.
At March 31, 2026, the recorded investment in non-owner occupied commercial real estate loans for which the primary purpose is utilization of office space by third parties was $109,404,000, or 4.6% of gross loans receivable. At March 31, 2026, within this segment there were three loans with a total recorded investment of $8,600,000 in nonaccrual status with no individual allowances, including the loan referred to in the Highlights section with a partial charge-off of $10,056,000 in the first quarter 2026 and an amortized cost basis at March 31, 2026 of $5,836,000. The remainder of the non-owner occupied commercial real estate loans with a primary purpose of office space utilization were in accrual status with no individual allowance at March 31, 2026.
Total nonperforming assets as a percentage of total assets was 1.33% at March 31, 2026, up from 1.06% at December 31, 2025 and 0.93% at March 31, 2025. Total nonperforming assets were $42,113,000 at March 31, 2026, up from
$33,113,000 at December 31, 2025 and $24,329,000 at March 31, 2025, including the impact of classifying the nonowner occupied commercial real estate loan referenced above as nonaccrual at March 31, 2026 and also includes the impact of nonaccrual loans purchased with credit deterioration ("PCD loans") that were acquired as part of the Susquehanna merger with a total amortized cost basis of $8,566,000 at March 31, 2026.
Deposits totaled $2,600,053,000 at March 31, 2026, up $35,337,000 from December 31, 2025 and $497,912,000 from March 31, 2025. Deposits of $501,488,000 were assumed from Susquehanna, effective October 1, 2025. Average total deposits decreased 2.6% during the first quarter 2026 from the fourth quarter 2025, mainly due to a seasonal reduction in balances held by municipal customers. Average total deposits were 24.2% higher for the first quarter 2026 as compared to the first quarter 2025.
C&N maintained highly liquid sources of available funds totaling $1.363 billion at March 31, 2026, including unused borrowing capacity with the Federal Home Loan Bank of Pittsburgh of $948.3 million, unused availability on the Federal Reserve Bank of Philadelphia's discount window of $24.6 million, available federal funds lines with other banks of $75 million and available-for-sale debt securities with a fair value in excess of collateral obligations of $315.4 million. At March 31, 2026, available funding from these sources totaled 159.3% of uninsured deposits, and 199.1% of uninsured and uncollateralized deposits.
The outstanding balance of borrowed funds, including Federal Home Loan Bank advances, repurchase agreements, senior notes and subordinated debt, totaled $193,046,000 at March 31, 2026, up $3,574,000 from December 31, 2025 and down
$1,725,000 from March 31, 2025.
Total stockholders' equity was $335,564,000 March 31, 2026, down from $341,714,000 at December 31, 2025 and up from $281,831,000 at March 31, 2025. Effective October 1, 2025, C&N recorded a net increase in stockholders' equity of $44,388,000 from the issuance of common stock to the former Susquehanna stockholders. Within stockholders' equity, the portion of accumulated other comprehensive loss related to available-for-sale debt securities was $25,096,000 at March 31, 2026, $23,154,000 at December 31, 2025 and $33,050,000 at March 31, 2025. The volatility in stockholders' equity related to accumulated other comprehensive loss from available-for-sale debt securities has been caused by fluctuations in interest rates including overall increases in rates as compared to market rates when most of C&N's securities were purchased. Accumulated other comprehensive loss is excluded from C&N's regulatory capital ratios.
Tangible common book value per share, a non-GAAP financial measure, was $14.73 at March 31, 2026 as compared to
$15.11 at December 31, 2025 and $14.71 at March 31, 2025. The Corporation's tangible common equity ratio was 8.53% at March 31, 2026 compared to 8.80% at December 31, 2025 and 8.91% at March 31, 2025. See Non-GAAP Reconciliation for additional information.
Citizens & Northern Corporation and Citizens & Northern Bank are subject to various regulatory capital requirements. At March 31 2026, Citizens & Northern Corporation and Citizens & Northern Bank maintained regulatory capital ratios that exceeded all capital adequacy requirements and were classified as well-capitalized.
On September 25, 2023, C&N announced a treasury stock repurchase program with no expiration that can be suspended or terminated by the Board of Directors, in its sole discretion. Under this program, C&N is authorized to repurchase up to 750,000 shares of its common stock. There were no shares repurchased during the three-month period ended March 31, 2026. At March 31, 2026, there were 723,465 shares available to be repurchased under the program.
Trust assets under management by C&N's Wealth Management Group were $1,473,084,000 at March 31 2026, up from
$1,468,691,000 at December 31, 2025, and up 10.2% from $1,336,737,000 at March 31, 2025. Fluctuations in values of assets under management reflect the impact of market volatility.
Under U.S. GAAP, interest income on tax-exempt securities and loans is reported at applicable nominal amounts, with the tax benefit accounted for as a reduction in the income tax provision. C&N presents certain analyses and ratios with net interest income determined on a fully taxable-equivalent basis, which are non-GAAP financial measures as presented. C&N believes presentation of net interest income on a fully taxable-equivalent basis provides investors with meaningful information for purposes of comparing the returns on tax-exempt securities and loans with returns on taxable securities and loans. The excess of net interest income on a fully taxable-equivalent basis over the amounts reported under U.S. GAAP was $231,000, $233,000 and $211,000 for the first quarter 2026, fourth quarter 2025 and first quarter 2025, respectively.
Citizens & Northern Corporation is the bank holding company for Citizens & Northern Bank, headquartered in Wellsboro, Pennsylvania, which operates 35 banking offices located in Bradford, Bucks, Cameron, Chester, Lancaster, Lycoming, McKean, Northumberland, Potter, Snyder, Sullivan, Tioga, Union and York Counties in Pennsylvania and Steuben County in New York, as well as a loan production office in Elmira, New York. Citizens & Northern Corporation trades on NASDAQ under the symbol "CZNC." For more information about Citizens & Northern Bank and Citizens & Northern Corporation, visit https://www.cnbankpa.com.
Safe Harbor Statement: Except for historical information contained herein, the matters discussed in this release are forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends" and similar expressions that are intended to identify forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty, and are not guarantees of future performance. Actual results may differ materially from those expressed in forward-looking statements. Factors that may affect futurefinancial results include, without limitation, the following: changes in monetary and fiscal policies of the Federal Reserve Board and the U.S. Government, particularly related to changes in interest rates; changes in general economic conditions; the potential for adverse developments in the banking industry that could have a negative impact on customer confidence, sources of liquidity and capital funding, and regulatory responses to such developments; C&N's credit standards and its on-going credit assessment processes might not protect it from significant credit losses; legislative or regulatory changes; downturn in demand for loan, deposit and other financial services in C&N's market area; increased competition from other banks and non-bank providers of financial services; technological changes and increased technology-related costs; information security breach or other technology difficulties or failures; changes in accounting principles, or the application of generally accepted accounting principles; fraud and cyber malfunction risks as usage of artificial intelligence continues to expand; the integration of Susquehanna's business and operations with those of C&N may divert the attention of the management teams of C&N and Susquehanna and cause a loss in the momentum of their ongoing businesses or have unanticipated adverse results on C&N's or Susquehanna existing businesses, may take longer than anticipated and may be more costly than anticipated; the anticipated cost savings, operational efficiencies and other synergies of the Susquehanna merger may take longer to be realized or may not be achieved in their entirety, and attrition in key client, partner and other relationships relating to the Susquehanna merger may be greater than expected; success of C&N in Susquehanna's geographic market area will require C&N to attract and retain key personnel in the market and to differentiate C&N from its competitors in the market; and Risk Factors identified in C&N's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Citizens & Northern disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Supplemental, Unaudited Financial Information TABLE 1 - CONDENSED, CONSOLIDATED EARNINGS INFORMATION (Dollars In Thousands, Except Per Share Data) (Unaudited)1ST QUARTER | 1ST QUARTER | ||
2026 | 2025 | $ Incr. (Decr.) | % Incr. (Decr.) |
Interest and Dividend Income $ 40,588 | $ 31,709 | $ 8,879 | 28.00 % |
Interest Expense 12,134 11,734 400 3.41 %
Net Interest Income 28,454 19,975 8,479 42.45 %
Net Interest Income After Provision for Credit Losses 14,852 19,739 (4,887) (24.76)%
Provision for Credit Losses 13,602 236 13,366 5,663.56 %
Noninterest Income 8,169 7,008 1,161 16.57 %
Net Realized Gains on Available-for-sale Debt Securities 26 0 26 N/M
Noninterest Expenses 22,712 19,043 3,669 19.27 %
Income Before Income Tax Provision 335 7,704 (7,369) (95.65)%
Income Tax Provision 62 1,411 (1,349) (95.61)%
Net Income $ 273 $ 6,293 $ (6,020) (95.66)% PER COMMON SHARE DATA: Net Income Attributable to Common Shares (1) $ 273 $ 6,242 $ (5,969) (95.63)%Net Income - Basic and Diluted $ 0.02 $ 0.41 $ (0.39) (95.12)%
Dividends Per Share $ 0.28 $ 0.28 $ 0.00 0.00 %
Number of Shares Used in Computation - Basic and Diluted 17,732,537 15,338,532
(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.
N/M Not meaningful
TABLE 2 - CONDENSED, CONSOLIDATED BALANCE SHEET DATA (Dollars In Thousands) (Unaudited)March 31, 2026 | March 31, 2025 | $ Incr. (Decr.) | % Incr. (Decr.) | ||
ASSETS | |||||
Cash & Due from Banks | $ 54,798 | $ 114,738 | $ | (59,940) | (52.24)% |
Available-for-sale Debt Securities | 497,367 | 408,463 | 88,904 | 21.77 % | |
Loans, Net | 2,351,018 | 1,878,260 | 472,758 | 25.17 % | |
Bank-Owned Life Insurance | 61,609 | 51,671 | 9,938 | 19.23 % | |
Bank Premises and Equipment, Net | 27,256 | 21,304 | 5,952 | 27.94 % | |
Intangible Assets | 74,069 | 54,479 | 19,590 | 35.96 % | |
Other Assets | 98,223 | 80,313 | 17,910 | 22.30 % | |
TOTAL ASSETS | $ 3,164,340 | $ 2,609,228 | $ | 555,112 | 21.27 % |
LIABILITIES | |||||
Deposits | $ 2,600,053 | $ 2,102,141 | $ | 497,912 | 23.69 % |
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements | 153,079 | 154,994 | (1,915) | (1.24)% | |
Senior Notes, Net | 14,988 | 14,917 | 71 | 0.48 % | |
Subordinated Debt, Net | 24,979 | 24,860 | 119 | 0.48 % | |
Other Liabilities | 35,677 | 30,485 | 5,192 | 17.03 % | |
TOTAL LIABILITIES | 2,828,776 | 2,327,397 | 501,379 | 21.54 % | |
STOCKHOLDERS' EQUITY | ||||
Common Stockholders' Equity, Excluding Accumulated | ||||
Other Comprehensive Loss | 360,326 | 314,521 | 45,805 | 14.56 % |
Accumulated Other Comprehensive Loss: | ||||
Net Unrealized Losses on Available-for-sale Debt Securities | (25,096) | (33,050) | 7,954 | (24.07)% |
Defined Benefit Plans | 334 | 360 | (26) | (7.22)% |
TOTAL STOCKHOLDERS' EQUITY | 335,564 | 281,831 | 53,733 | 19.07 % |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 3,164,340 | $ 2,609,228 | $ 555,112 | 21.27 % |
FOR THE
THREE MONTHS ENDED % March 31, INCREASE
2026 | 2025 | (DECREASE) | |
EARNINGS PERFORMANCE- U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP") | |||
Net Income | $ 273 | $ 6,293 | (95.66)% |
Return on Average Assets (Annualized) | 0.03 % | 0.98 % | (96.94)% |
Return on Average Equity (Annualized) | 0.32 % | 9.05 % | (96.46)% |
PRE-TAX, PRE-PROVISION NET REVENUE ("PPNR") - NON-GAAP (b) PPNR | $ 14,142 | $ 8,151 | 73.50 % |
PPNR (Annualized) as a % of Average Assets PPNR (Annualized) as a % of Average Equity | 1.80 % 16.34 % | 1.27 % 11.72 % | 41.73 % 39.42 % |
BALANCE SHEET HIGHLIGHTS | |||
Total Assets | $ 3,164,340 | $ 2,609,228 | 21.27 % |
Available-for-Sale Debt Securities | 497,367 | 408,463 | 21.77 % |
Loans, Net | 2,351,018 | 1,878,260 | 25.17 % |
Allowance for Credit Losses: | |||
Allowance for Credit Losses on Loans | 33,832 | 20,172 | 67.72 % |
Allowance for Credit Losses on Off-Balance Sheet Exposures | 1,039 | 463 | 124.41 % |
Deposits | 2,600,053 | 2,102,141 | 23.69 % |
OFF-BALANCE SHEET | |||
Outstanding Balance of Mortgage Loans Sold with Servicing Retained | $ 451,162 | $ 329,761 | 36.81 % |
Trust Assets Under Management | 1,473,084 | 1,336,737 | 10.20 % |
AS OF OR FOR THE
THREE MONTHS ENDED %
March 31, INCREASE
2026 | 2025 | (DECREASE) | |
STOCKHOLDERS' VALUE (PER COMMON SHARE) | |||
Net Income - Basic and Diluted | $ 0.02 | $ 0.41 | (95.12)% |
Dividends | $ 0.28 | $ 0.28 | 0.00 % |
Common Book Value | $ 18.74 | $ 18.20 | 2.97 % |
Tangible Common Book Value - NON-GAAP (c) | $ 14.73 | $ 14.71 | 0.14 % |
Market Value (Last Trade) | $ 22.34 | $ 20.12 | 11.03 % |
Market Value / Common Book Value | 119.21 % | 110.55 % | 7.83 % |
Market Value / Tangible Common Book Value - NON-GAAP (c) | 151.66 % | 136.78 % | 10.88 % |
Price Earnings Multiple 279.25 12.27 | 2,175.88 % | ||
Dividend Yield (Annualized) Common Shares Outstanding, End of Period | 5.01 % 17,909,958 | 5.57 % 15,482,848 | (10.05)% 15.68 % |
SAFETY AND SOUNDNESS | |||
Tangible Common Equity / Tangible Assets (c) | 8.53 % | 8.91 % | (4.26)% |
Nonperforming Assets / Total Assets | 1.33 % | 0.93 % | 43.01 % |
Allowance for Credit Losses / Total Loans | 1.42 % | 1.06 % | 33.96 % |
Total Risk Based Capital Ratio (d) | 14.11 % | 16.02 % | (11.92)% |
Tier 1 Risk Based Capital Ratio (d) | 11.84 % | 13.64 % | (13.20)% |
Common Equity Tier 1 Risk Based Capital Ratio (d) | 11.84 % | 13.64 % | (13.20)% |
Leverage Ratio (d) | 9.31 % | 10.17 % | (8.46)% |
AVERAGE BALANCES | |||
Average Assets | $ 3,146,688 | $ 2,575,150 | 22.19 % |
Average Equity | $ 346,137 | $ 278,143 | 24.45 % |
EFFICIENCY RATIO - NON-GAAP (e) | |||
Net Interest Income on a Fully Taxable-Equivalent Basis (e) | $ 28,685 | $ 20,186 | 42.10 % |
Noninterest Income, Excluding Net Realized Gain on Available-for-sale Debt Securities | 8,169 | 7,008 | 16.57 % |
Total (1) | $ 36,854 | $ 27,194 | 35.52 % |
Noninterest Expense (2) | $ 22,712 | $ 19,043 | 19.27 % |
Efficiency Ratio = (2)/(1) | 61.63 % | 70.03 % | (11.99)% |
The impact of the merger-related expense, net of tax has been added to the adjusted earnings and used in the calculation of the adjusted average return on assets, adjusted average return on equity and net income per basic and diluted share. Management believes disclosure of unaudited earnings results, adjusted to exclude the impact of the merger-related expense, net of tax, provides useful information for comparative purposes. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. A reconciliation of this non-GAAP measure to the comparable GAAP measure is provided below under the table "Adjusted Ratios for Merger-Related Expenses - NON- GAAP RECONCILIATION."
PPNR includes net interest income plus noninterest income minus total noninterest expense but excludes provision (credit) for credit losses, realized gains or losses on securities, the income tax provision and merger-related expenses and other nonrecurring items included in earnings. Management believes disclosure of PPNR provides useful information for evaluating C&N's financial performance without the impact of realized gains or losses on securities or unusual items or events that may obscure trends in C&N's underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. A reconciliation of this non-GAAP measure to the comparable GAAP measure is provided below under the table "PPNR-NON- GAAP RECONCILIATION."
Tangible common book value per share, tangible common equity as a percentage of tangible assets and market value as a percentage of tangible common book value are non-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:
March 31,
2026 | 2025 | |
Total Assets | $ 3,164,340 | $ 2,609,228 |
Less: Intangible Asset, Goodwill | (63,311) | (52,505) |
Less: Intangible Asset, Core Deposit Intangibles, net | (10,758) | (1,974) |
Related Tax Effect on Core Deposit Intangibles, net | 2,367 | 434 |
Tangible Assets (3) | $ 3,092,638 | $ 2,555,183 |
Total Stockholders' Equity | $ 335,564 | $ 281,831 |
Less: Goodwill | (63,311) | (52,505) |
Less: Intangible Asset, Core Deposit Intangibles, net | (10,758) | (1,974) |
Related Tax Effect on Core Deposit Intangibles, net | 2,367 | 434 |
Tangible Common Equity (4) | $ 263,862 | $ 227,786 |
Common Shares Outstanding, End of Period (5) | 17,909,958 | 15,482,848 |
Tangible Common Book Value per Share = (3)/(5) | $ 14.73 | $ 14.71 |
Tangible Common Equity (4) / Tangible Assets (3) (d) Capital ratios for the most recent period are estimated. | 8.53 % | 8.91 % |
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 on page 20.
TABLE 4 - QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION (Dollars In Thousands, Except Per Share Data) (Unaudited)For the Three Months Ended:
TABLE 5 - QUARTERLY CONDENSED, CONSOLIDATED BALANCE SHEET INFORMATION (In Thousands) (Unaudited)March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
March 31,
2025
Interest and dividend income
$ 40,588
$ 41,404
$ 33,650
$ 32,454
$ 31,709
Interest expense
12,134
12,931
11,387
11,312
11,734
Net interest income
28,454
28,473
22,263
21,142
19,975
Provision for credit losses
13,602
1,320
2,163
2,354
236
Net interest income after provision for credit losses
14,852
27,153
20,100
18,788
19,739
Noninterest income
8,169
8,360
7,304
8,142
7,008
Net realized gains on available-for-sale debt securities
26
38
0
0
0
Merger-related expenses
0
6,891
882
167
0
Other noninterest expenses
22,712
23,268
18,507
19,231
19,043
Income before income tax provision
335
5,392
8,015
7,532
7,704
Income tax provision
62
926
1,464
1,415
1,411
Net income
$ 273
$ 4,466
$ 6,551
$ 6,117
$ 6,293
Net income attributable to common shares
$ 273
$ 4,437
$ 6,498
$ 6,068
$ 6,242
Basic and diluted earnings per common share
$ 0.02
$ 0.25
$ 0.42
$ 0.40
$ 0.41
ASSETS
As of:
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
March 31,
2025
Cash & Due from Banks
$ 54,798
$ 46,056
$ 123,090
$ 99,619
$ 114,738
Available-for-Sale Debt Securities
497,367
506,575
415,313
406,052
408,463
Loans, Net
2,351,018
2,323,317
1,921,633
1,897,559
1,878,260
Bank-Owned Life Insurance
61,609
61,094
52,614
52,138
51,671
Bank Premises and Equipment, Net
27,256
27,755
21,055
21,195
21,304
Intangible Assets
74,069
74,884
54,267
54,373
54,479
Other Assets
98,223
92,788
76,061
79,939
80,313
TOTAL ASSETS
$ 3,164,340
$ 3,132,469
$ 2,664,033
$ 2,610,875
$ 2,609,228
LIABILITIES
Deposits (1)
$ 2,600,053
$ 2,564,716
$ 2,165,735
$ 2,109,776
$ 2,102,141
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements
153,079
149,553
134,383
144,427
154,994
Senior Notes, Net
14,988
14,970
14,952
14,934
14,917
Subordinated Debt, Net
24,979
24,949
24,919
24,889
24,860
Other Liabilities
35,677
36,567
30,085
30,492
30,485
TOTAL LIABILITIES
2,828,776
2,790,755
2,370,074
2,324,518
2,327,397
STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss
360,326
364,509
319,985
317,031
314,521
Accumulated Other Comprehensive Loss:
Net Unrealized Losses on Available-for-sale Debt Securities
(25,096)
(23,154)
(26,352)
(31,017)
(33,050)
Defined Benefit Plans
334
359
326
343
360
TOTAL STOCKHOLDERS' EQUITY
335,564
341,714
293,959
286,357
281,831
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
$ 3,164,340
$ 3,132,469
$ 2,664,033
$ 2,610,875
$ 2,609,228
(1) Brokered Deposits (Included in Total Deposits) $ 702 $ 3,850 $ 5,004 $ 5,005 $ 22,022
TABLE 6 - AVAILABLE-FOR-SALE DEBT SECURITIES (In Thousands)March 31, 2026 December 31, 2025 March 31, 2025
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Obligations of the U.S. Treasury
$ 8,042
$ 7,456
$ 8,047
$ 7,482
$ 8,062
$ 7,284
Obligations of U.S. Government agencies
10,936
10,212
11,423
10,749
9,819
8,923
Bank holding company debt securities
37,631
35,745
36,103
34,076
28,959
25,944
Obligations of states and political subdivisions:
Tax-exempt
104,941
96,758
105,149
98,359
110,721
99,148
Taxable
50,239
43,955
50,306
44,152
51,075
43,587
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities
148,471
142,864
148,865
143,921
105,642
97,477
Residential collateralized mortgage obligations
62,511
60,094
65,782
63,707
54,923
52,148
Commercial mortgage-backed securities
98,771
92,296
99,095
92,631
73,232
65,553
Private label commercial mortgage-backed securities
0
0
3,490
3,489
8,404
8,399
Asset-backed securities,
Collateralized loan obligations
8,000
7,987
8,000
8,009
0
0
Total Available-for-Sale Debt Securities
$ 529,542
$ 497,367 $ 536,260
$ 506,575 $ 450,837
$ 408,463
TABLE 7 - SUMMARY OF LOANS BY TYPE
(Excludes Loans Held for Sale) (In Thousands)
March 31, December 31, March 31,
2026 2025 2025
Commercial real estate - non-owner occupied:
Non-owner occupied $ 556,787 $ 569,974 $ 471,351
Multi-family (5 or more) residential 170,891 160,284 101,061
1-4 Family - commercial purpose 198,203 197,480 161,292
Total commercial real estate - non-owner occupied 925,881 927,738 733,704
All other commercial loans:
Commercial real estate - owner occupied 326,210 311,792 260,248
Commercial and industrial 127,100 128,679 96,233
Commercial lines of credit 148,118 139,727 128,290
Political subdivisions 103,097 96,349 94,046
Commercial construction and land 123,170 123,887 96,176
Other commercial loans 70,431 71,895 21,434
Total all other commercial loans 571,916 560,537 436,179
1-4 Family - residential 411,451 411,827 378,841
Residential mortgage loans:
1-4 Family residential construction 34,460 32,123 23,407
Total residential mortgage 445,911 443,950 402,248
Consumer lines of credit (including HELCs) 98,961 94,060 49,782
Consumer loans:
All other consumer 15,971 16,288 16,271
Total consumer 114,932 110,348 66,053
Less: allowance for credit losses on loans (33,832) (31,048) (20,172)
Total 2,384,850 2,354,365 1,898,432
Loans, net $ 2,351,018 $ 2,323,317 $ 1,878,260
TABLE 8 - NON-OWNER OCCUPIED COMMERCIAL REAL ESTATE (In Thousands)Loan Type | March 31, | % of Non-owner | % of |
2026 | Occupied CRE | Total Loans | |
Retail $ | 116,507 | 20.9 % | 4.9 % |
Office | 109,404 | 19.6 % | 4.6 % |
Industrial | 98,985 | 17.8 % | 4.2 % |
Hotels | 81,638 | 14.7 % | 3.4 % |
Mixed Use | 57,897 | 10.4 % | 2.4 % |
Self Storage Facilities | 55,083 | 9.9 % | 2.3 % |
Other 37,273 6.7 % 1.6 % | |||
Total Non-owner Occupied CRE Loans $ 556,787
Total Gross Loans $ 2,384,850
TABLE 9- PAST DUE LOANS AND NONPERFORMING ASSETS (Dollars In Thousands)March 31, 2026 | December 31, 2025 | March 31, |
PCD Loans (1) Non PCD Loans Total | PCD Loans (1) Non PCD Loans Total | 2025 |
Collateral dependent loans with a valuation allowance $ 4,970 $ 632 $ 5,602 $ 5,138 $ 263 $ 5,401 $ 945 | ||
Collateral dependent loans without a
valuation allowance 7,518 27,712 35,230 5,553 21,474 27,027 29,854
Total collateral dependent loans $ 12,488 | $ 28,344 | $ 40,832 | $ 10,691 | $ 21,737 | $ 32,428 | $ 30,799 |
Total loans past due 30-89 days and still accruing $ 2,193 | $ 8,024 | $ 10,217 | $ 5,810 | $ 12,499 | $ 18,309 | $ 8,452 |
Nonperforming assets: | ||||||
Total nonaccrual loans $ 8,566 | $ 33,297 | $ 41,863 | $ 6,762 | $ 26,074 | $ 32,836 | $ 24,106 |
Total loans past due 90 days or more and still accruing 0 | 69 | 69 | 0 | 88 | 88 | 24 |
Total nonperforming loans 8,566 | 33,366 | 41,932 | 6,762 | 26,162 | 32,924 | 24,130 |
Foreclosed assets held for sale (real estate) 0 | 181 | 181 | 0 | 189 | 189 | 199 |
Total nonperforming assets | $ 8,566 | $ 33,547 $ 42,113 | $ 6,762 | $ 26,351 $ 33,113 | $ 24,329 | |
Total nonperforming loans as a % of total loans | 1.76 % | 1.40 % | 1.27 % | |||
Total nonperforming assets as a % of assets | 1.33 % | 1.06 % | 0.93 % | |||
Allowance for credit losses as a % of total loans | 1.42 % | 1.32 % | 1.06 % | |||
(1) Loans acquired in the Susquehanna merger with more than insignificant deterioration of credit quality since origination are accounted for as purchased with credit deterioration ("PCD"). Loans in nonaccrual status or risk rated special mention or substandard at October 1, 2025 are considered PCD Loans. The amortized cost basis of PCD loans totaled $22,266,000 at March 31, 2026.
TABLE 10- ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LOANS (In Thousands)3 Months Ended March 31, 2026 | 3 Months Ended December 31, 2025 | 3 Months Ended March 31, 2025 | Year Ended December 31, 2025 | |
Balance, beginning of period | $ 31,048 | $ 23,474 | $ 20,035 | $ 20,035 |
Allowance recorded in business combination | 0 | 7,074 | 0 | 7,074 |
Charge-offs | (10,833) | (905) | (117) | (1,726) |
Recoveries | 25 | 21 | 26 | 109 |
Net charge-offs | (10,808) | (884) | (91) | (1,617) |
Provision for credit losses on loans | 13,592 | 1,384 | 228 | 5,556 |
Balance, end of period | $ 33,832 | $ 31,048 | $ 20,172 | $ 31,048 |
Net charge-offs as a % of average gross loans (annualized) | 1.83 % | 0.15 % | 0.02 % | 0.08 % |
TABLE 11 - ANALYSIS OF THE PROVISION (CREDIT) FOR CREDIT LOSSES | |||
(In Thousands) | |||
3 Months Ended March 31, 2026 | 3 Months Ended December 31, 2025 | 3 Months Ended March 31, 2025 | |
Provision (credit) for credit losses: | |||
Loans receivable | $ 13,592 | $ 1,384 | $ 228 |
Off-balance sheet exposures | 10 | (64) | 8 |
Total provision for credit losses | $ 13,602 | $ 1,320 | $ 236 |
TABLE 12 - PPNR NON- GAAP RECONCILIATION | |||
(In Thousands) | |||
March 31, | Three Months Ended December 31, | March 31, | |
Adjusted Ratios for Merger-Related Expense: | 2026 | 2025 | 2025 |
Net Income (GAAP) | $ 273 | $ 4,466 | $ 6,293 |
Add: Provision for income taxes | 62 | 926 | 1,411 |
Add: Provision for credit losses | 13,602 | 1,320 | 236 |
Less: Realized gains on available-for-sale securities debt securities | (26) | (38) | 0 |
Add: Merger-related expenses | 0 | 6,891 | 0 |
Add: Professional fees expense - core system contract negotiation | 0 | 647 | 0 |
Add: Adjustments to reflect net interest income on a fully taxable- | |||
equivalent basis | 231 | 233 | 211 |
PPNR (non-GAAP) | $ 14,142 | $ 14,445 | $ 8,151 |
Three Months Ended
Calculation of Adjusted Net Income: | March 31, 2026 | December 31, 2025 | March 31, 2025 |
Net Income (GAAP) (A) | $ 273 | $ 4,466 | $ 6,293 |
Add: Merger-related expenses (B) | 0 | 6,891 | 0 |
Less: Tax effect of merger-related expenses (C) | 0 | (1,391) | 0 |
Adjusted Net Income (D=A+B-C) - Non-GAAP | $ 273 | $ 9,966 | $ 6,293 |
Adjusted Net Income Attributable to Common Shares - Non-GAAP | $ 273 | $ 9,886 | $ 6,242 |
Number of Shares Used in Computation-Basic and Diluted - Non-GAAP | 17,732,537 | 17,665,099 | 15,338,532 |
Net Income-Basic and Diluted per Common Share - GAAP | $ 0.02 | $ 0.25 | $ 0.41 |
Adjusted Net Income-Basic and Diluted Per Common Share - Non-GAAP | $ 0.02 | $ 0.56 | $ 0.41 |
Adjusted Ratios for Merger-Related Expenses: | |||
Average Assets (E) | 3,146,688 | 3,175,780 | 2,575,150 |
Return on Average Assets (=A/E ) - GAAP(1) | 0.03 % | 0.56 % | 0.98 % |
Adjusted Return on Average Assets (=D/E) - Non-GAAP(1) | 0.03 % | 1.26 % | 0.98 % |
Average Equity (F) | 346,137 | 341,300 | 278,143 |
Return on Average Equity (=A/F) - GAAP(1) | 0.32 % | 5.23 % | 9.05 % |
Adjusted Return on Average Equity (=D/F) -Non-GAAP(1) | 0.32 % | 11.68 % | 9.05 % |
(1) Annualized |
(Dollars in Thousands) | 3 Months | 3 Months | 3 Months | ||||||
Ended | Rate of | Ended | Rate of | Ended | Rate of | ||||
3/31/2026 | Return/ | 12/31/2025 | Return/ | 3/31/2025 | Return/ | ||||
Average | Income/ | Cost of | Average | Income/ Cost of | Average | Income/ | Cost of | ||
Balance | Expense | Funds % | Balance | Expense Funds % | Balance | Expense | Funds % | ||
EARNING ASSETS | |||||||||
Interest-bearing due from banks $ 25,516 | $ 218 | 3.46 % | $ 82,771 | $ 801 | 3.84 % | $ 67,896 | $ 721 | 4.31 % | |
Available-for-sale debt securities, at amortized cost: | |||||||||
Taxable 427,531 | 3,518 | 3.34 % | 424,835 | 3,399 | 3.17 % | 339,557 | 2,302 | 2.75 % | |
Tax-exempt (1) 104,712 | 647 | 2.51 % | 106,361 | 654 | 2.44 % | 111,143 | 648 | 2.36 % | |
Total available-for-sale debt securities 532,243 4,165 3.17 % 531,196 4,053 3.03 % 450,700 2,950 2.65 % | |||||||||
Loans receivable: | |||||||||
Taxable | 2,271,112 | 35,641 | 6.36 % | 2,255,485 | 35,958 | 6.33 % | 1,809,045 | 27,503 | 6.17 % |
Tax-exempt (2) | 93,852 | 765 | 3.31 % | 90,019 | 787 | 3.47 % | 90,388 | 728 | 3.27 % |
Total loans receivable | 2,364,964 | 36,406 | 6.24 % | 2,345,504 | 36,745 | 6.22 % | 1,899,433 | 28,231 | 6.03 % |
Other earning assets | 2,893 | 30 | 4.21 % | 3,028 | 38 | 4.98 % | 1,777 | 18 | 4.11 % |
Total Earning Assets | 2,925,616 | $ 40,819 | 5.66 % | 2,962,499 | $ 41,637 | 5.58 % | 2,419,806 | $ 31,920 | 5.35 % |
Cash | 25,498 | 23,461 | 20,920 | ||||||
Unrealized loss on securities | (27,003) | (31,622) | (44,405) | ||||||
Allowance for credit losses | (31,520) | (30,888) | (20,341) | ||||||
Bank-owned life insurance | 61,275 | 60,756 | 51,383 | ||||||
Bank premises and equipment | 27,551 | 27,963 | 21,329 | ||||||
Intangible assets | 74,530 | 75,534 | 54,530 | ||||||
Other assets | 90,741 | 88,076 | 71,928 | ||||||
Total Assets | $ 3,146,688 | $ 3,175,779 | $ 2,575,150 | ||||||
INTEREST-BEARING LIABILITIES | |||||||||
Interest-bearing deposits: | |||||||||
Interest checking | $ 669,972 | $ 2,328 | 1.41 % | $ 687,936 | $ 2,664 | 1.54 % | $ 539,244 | $ 2,727 | 2.05 % |
Money market | 385,585 | 1,850 | 1.95 % | 409,970 | 2,205 | 2.13 % | 355,144 | 1,981 | 2.26 % |
Savings | 362,060 | 848 | 0.95 % | 374,431 | 1,039 | 1.10 % | 195,971 | 49 | 0.10 % |
Time deposits | 602,443 | 5,032 | 3.39 % | 616,988 | 5,235 | 3.37 % | 494,219 | 4,835 | 3.97 % |
Total interest-bearing deposits | 2,020,060 | 10,058 | 2.02 % | 2,089,325 | 11,143 | 2.12 % | 1,584,578 | 9,592 | 2.45 % |
Borrowed funds: | |||||||||
Short-term | 28,203 | 276 | 3.97 % | 2,438 | 6 | 0.98 % | 1,400 | 0 | 0.00 % |
Long-term - FHLB advances | 134,034 | 1,446 | 4.38 % | 126,069 | 1,428 | 4.49 % | 162,392 | 1,789 | 4.47 % |
Senior notes, net | 14,979 | 121 | 3.28 % | 14,962 | 121 | 3.21 % | 14,908 | 121 | 3.29 % |
Subordinated debt, net | 24,965 | 233 | 3.79 % | 24,935 | 233 | 3.71 % | 24,846 | 232 | 3.79 % |
Total borrowed funds | 202,181 | 2,076 | 4.16 % | 168,404 | 1,788 | 4.21 % | 203,546 | 2,142 | 4.27 % |
Total Interest-bearing Liabilities | 2,222,241 | $ 12,134 | 2.21 % | 2,257,729 | $ 12,931 | 2.27 % | 1,788,124 | $ 11,734 | 2.66 % |
Demand deposits | 540,165 | 539,557 | 476,604 | ||||||
Other liabilities | 38,145 | 37,193 | 32,279 | ||||||
Total Liabilities | 2,800,551 | 2,834,479 | 2,297,007 | ||||||
Stockholders' equity, excluding | |||||||||
accumulated other comprehensive loss | 366,848 | 365,646 | 312,427 | ||||||
Accumulated other comprehensive loss | (20,711) | (24,346) | (34,284) | ||||||
Total Stockholders' Equity | 346,137 | 341,300 | 278,143 | ||||||
Total Liabilities and Stockholders' Equity | $ 3,146,688 | $ 3,175,779 | $ 2,575,150 | ||||||
Interest Rate Spread | 3.45 % | 3.31 % | 2.69 % | ||||||
Net Interest Income | $ 28,685 | $ 28,706 | $ 20,186 | ||||||
Net Interest Income/Earning Assets (Net Interest Margin) | 3.98 % | 3.84 % | 3.38 % | ||||||
Total Deposits (Interest-bearing and Demand) | $ 2,560,225 | $ 2,628,882 | $ 2,061,182 | ||||||
Brokered Deposits | $ 2,247 | $ 21 | 3.79 % | $ 4,705 | $ 48 | 4.05 % | $ 26,580 | $ 312 | 4.76 % |
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%. See Reconciliation.
Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.
Rates of return on earning assets and costs of funds have been presented on an annualized basis.
(In Thousands) | Three Months Ended | ||
March 31, | December 31, | March 31, | |
2026 | 2025 | 2025 | |
Net Interest Income Under U.S. GAAP | $ 28,454 | $ 28,473 | $ 19,975 |
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities | 85 | 82 | 75 |
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans | 146 | 151 | 136 |
Net Interest Income as adjusted to a fully taxable-equivalent basis | $ 28,685 | $ 28,706 | $ 20,186 |
TABLE 16 - COMPARISON OF NONINTEREST INCOME | |||
(In Thousands) | |||
Three Months Ended | |||
March 31, 2026 | December 31, 2025 | March 31, 2025 | |
Trust revenue | $ 2,085 | $ 2,087 | $ 2,102 |
Brokerage and insurance revenue | 588 | 771 | 498 |
Service charges on deposit accounts | 1,650 | 1,643 | 1,440 |
Interchange revenue from debit card transactions | 1,267 | 1,232 | 1,036 |
Net gains from sales of loans | 370 | 558 | 205 |
Loan servicing fees, net | 108 | 225 | 138 |
Increase in cash surrender value of life insurance | 515 | 527 | 457 |
Other noninterest income | 1,586 | 1,317 | 1,132 |
Total noninterest income, excluding realized gains on available-for-sale | |||
debt securities, net | 8,169 | 8,360 | 7,008 |
Realized gains on available-for-sale debt securities, net | 26 | 38 | 0 |
Total noninterest income | $ 8,195 | $ 8,398 | $ 7,008 |
TABLE 17 - COMPARISON OF NONINTEREST EXPENSE | |||
(In Thousands) | |||
March 31, | Three Months Ended December 31, | March 31, | |
2026 | 2025 | 2025 | |
Salaries and employee benefits | $ 13,201 | $ 13,267 | $ 11,759 |
Net occupancy and equipment expense | 1,891 | 1,662 | 1,459 |
Data processing and telecommunications expenses | 2,449 | 2,751 | 2,071 |
Automated teller machine and interchange expense | 583 | 544 | 387 |
Pennsylvania shares tax | 585 | 469 | 496 |
Professional fees | 639 | 1,291 | 517 |
Other noninterest expense | 3,364 | 3,284 | 2,354 |
Total noninterest expense, excluding merger-related | |||
expenses | 22,712 | 23,268 | 19,043 |
Merger-related expenses | 0 | 6,891 | 0 |
Total noninterest expense | $ 22,712 | $ 30,159 | $ 19,043 |
Available Credit Facilities | Outstanding March 31, Dec. 31, March 31, | Available March 31, Dec. 31, | March 31, | Total Credit March 31, Dec. 31, March 31, | |||||
2026 2025 2025 | 2026 | 2025 | 2025 | 2026 | 2025 | 2025 | |||
Federal Home Loan Bank of Pittsburgh | $ 174,202 $ 170,922 $ 176,540 | $ 948,272 $ 785,822 | $ 772,430 | $ 1,137,639 $ 971,946 $ 948,970 | |||||
Federal Reserve Bank Discount Window | 0 | 0 | 0 | 24,632 25,484 | 17,431 | 24,632 | 25,484 | 17,431 | |
Other correspondent banks | 0 | 0 | 0 | 75,000 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | |
Total credit facilities | $ 174,202 $ 170,922 $ 176,540 | $ 1,047,904 $ 886,306 $ 864,861 | $ 1,237,271 $ 1,072,430 $ 1,041,401 | ||||||
Uninsured Deposits Information | March 31, | December 31, | March 31, |
2026 | 2025 | 2025 | |
Total Deposits - C&N Bank | $ 2,620,675 | $ 2,584,952 | $ 2,120,521 |
Estimated Total Uninsured Deposits | $ 856,022 | $ 811,209 | $ 621,542 |
Portion of Uninsured Deposits that are | |||
Collateralized | 171,335 | 172,585 | 138,178 |
Uninsured and Uncollateralized Deposits | $ 684,687 | $ 638,624 | $ 483,364 |
Uninsured and Uncollateralized Deposits as | |||
a % of Total Deposits | 26.1 % | 24.7 % | 22.8 % |
Available Funding from Credit Facilities | $ 1,047,904 | $ 886,306 | $ 864,861 |
Fair Value of Available-for-sale Debt | |||
Securities in Excess of Pledging Obligations | 315,391 | 319,624 | 270,496 |
Highly Liquid Available Funding | $ 1,363,295 | $ 1,205,930 | $ 1,135,357 |
Highly Liquid Available Funding as a % of | |||
Uninsured Deposits | 159.3 % | 148.7 % | 182.7 % |
Highly Liquid Available Funding as a % of | |||
Uninsured and Uncollateralized Deposits | 199.1 % | 188.8 % | 234.9 % |