Citizens & Northern : Fourth Quarter 2024 Unaudited Financial Information

About this update from Citizens & Northern Corp

Exhibit 99.1 Contact: Charity Frantz January 23, 2025 570-724-0225 [email protected] ‌C&N DECLARES DIVIDEND AND ANNOUNCES FOURTH QUARTER 2024 UNAUDITED FINANCIAL RESULTS FOR IMMEDIATE RELEASE: Wellsboro, PA - Citizens & Northern Corporation ("C&N") (NASDAQ: CZNC) announced its most recent dividend declaration and its unaudited, consolidated financial results for the three-month and annual periods ended December 31, 2024. C&N's principal activity is community banking, and the largest subsidiary is Citizens & Northern Bank (the "Bank"). Highlights: Net income was $8,174,000, or $0.53 diluted earnings per share for the fourth quarter 2024, up from $6,365,000, or $0.41 per diluted share in the third quarter 2024, and up from $4,261,000, or $0.28 per diluted share in the fourth quarter 2023. Net income for the year ended December 31, 2024 was $25,958,000, or $1.69 diluted earnings per share, up from $24,148,000, or $1.57 diluted earnings per share for the year ended December 31, 2023. In the fourth quarter 2023 , C&N repositioned its available-for-sale securities portfolio and its investments in bank-owned life insurance ("BOLI") resulting in a net charge to earnings of approximately $1,253,000, or $0.08 per diluted share in the fourth quarter 2023. In the fourth quarter 2024, net interest income was $317,000 higher than in the third quarter 2024 and $879,000 higher than in the fourth quarter 2023. The net interest margin was 3.30% in the fourth quarter 2024 as compared to 3.29% in the third quarter 2024 and 3.31% in the fourth quarter 2023. For the year ended December 31, 2024, net interest income was $1,285,000 lower than in 2023. The net interest margin was 3.30% for the year ended December 31, 2024, down from 3.47% in 2023. There was a credit for credit losses (reduction in expense) of $531,000 in the fourth quarter 2024 as compared to a provision for credit losses of $1,207,000 in the third quarter 2024 and a provision for credit losses of $951,000 in the fourth quarter 2023. For the year ended December 31, 2024, the provision for credit losses was $2,195,000 as compared to $186,000 for the year ended December 31, 2023. The allowance for credit losses ("ACL") on loans was 1.06% of gross loans receivable at December 31, 2024, 1.08% at September 30, 2024 and 1.04% at December 31, 2023. Total loans receivable were $3,084,000 higher at December 31, 2024 compared to September 30, 2024. Average loans receivable increased 1.0% (annualized) during the fourth quarter 2024 from the third quarter 2024. Average loans receivable were higher by 5.0% for the year ended December 31, 2024, as compared to 2023. Nonperforming loans totaled $24.0 million, or 1.26% of total loans, at December 31, 2024, down from $24.5 million, or 1.29% of total loans, at September 30, 2024 and up from $18.4 million, or 0.99% of total loans, at December 31, 2023. Total nonperforming assets were 0.92% of total assets at both December 31, 2024 and September 30, 2024, up from 0.75% at December 31, 2023. Deposits totaled $2,093,909,000 at December 31, 2024, down $41,970,000 (2.0%) from $2,135,879,000 at September 30, 2024, including a decrease in brokered deposits of $21,030,000. Average total deposits increased 8.1% (annualized) during the fourth quarter 2024 from the third quarter 2024 and were 4.3% higher for the year ended December 31, 2024, as compared to the year ended December 31, 2023. At December 31, 2024, estimated uninsured and uncollateralized deposits totaled 22.3% of the Bank's total deposits. C&N maintains highly liquid sources of available funds, including unused borrowing capacity with the Federal Home Loan Bank of Pittsburgh and the Federal Reserve Bank of Philadelphia and available federal funds lines with other banks, as well as available-for-sale debt securities with a fair value in excess of collateral obligations. At December 31, 2024, available funding from these sources totaled 170.7% of uninsured deposits and 229.4% of uninsured and uncollateralized deposits. 1 Dividend Declared and Unaudited Financial Information On January 23, 2025, C&N's Board of Directors declared a regular quarterly cash dividend of $0.28 per share. The dividend is payable on February 14, 2025 to shareholders of record as of February 3, 2025. Highlights related to C&N's fourth quarter and December 31, 2024 annual unaudited U.S. GAAP earnings results as compared to results for the third quarter 2024, fourth quarter 2023 and the year ended December 31, 2023 are presented below. Fourth Quarter 2024 as Compared to Third Quarter 2024 Net income was $8,174,000, or $0.53 per diluted share, for the fourth quarter 2024 as compared to $6,365,000, or $0.41 per diluted share, for the third quarter 2024. Significant variances were as follows: Net interest income of $20,473,000 in the fourth quarter 2024 increased $317,000 from the third quarter 2024. Average total earning assets increased $30,193,000 from the prior quarter, as average interest-bearing due from banks increased $30,118,000. Average total deposits increased $42,115,000, while average total borrowed funds decreased $22,869,000.The net interest margin was 3.30% in the fourth quarter 2024, up 0.01% from 3.29% in the third quarter 2024. The net interest spread increased 0.04%, as the average rate on interest-bearing liabilities decreased 0.06% and the average yield on earning assets decreased 0.02%. For the quarter ended December 31, 2024, there was a credit for credit losses (a reduction in expense) of $531,000, compared to a provision for credit losses of $1,207,000 in the third quarter 2024. The credit for the fourth quarter 2024 included a credit related to loans receivable of $393,000 and a credit related to off-balance sheet exposures of $138,000. The credit in the fourth quarter 2024 included the impact of decreases in the ACL from a decrease in estimated future net charge-offs related to an economic forecast and a decrease in C&N's average net charge-off experience partially offset by an increase in the ACL related to changes in qualitative factors. Net charge-offs totaled $14,000 in the fourth quarter 2024 as compared to $1,237,000 in the third quarter 2024. The ACL on loans was 1.06% of gross loans receivable at December 31, 2024 and 1.08% September 30, 2024. Noninterest income of $7,547,000 in the fourth quarter 2024 increased $414,000 from the third quarter 2024 amount. Brokerage and insurance revenue of $682,000 increased $159,000, loan servicing fees, net of $215,000 increased $141,000 from the third quarter 2024, including an increase of $8,000 in the fair value of servicing rights as compared to a decrease of $129,000 in the prior quarter and trust revenue of $2,071,000 increased $125,000 from the third quarter 2024. Noninterest expense of $18,430,000 in the fourth quarter 2024 increased $161,000 from the third quarter 2024 amount. Significant variances included the following: Salaries and employee benefits expense of $11,470,000 increased $595,000 from the third quarter 2024, including an increase in health insurance expense of $561,000 resulting from an increase in claims incurred on C&N's partially self-insured plan. Other noninterest expense of $2,425,000 decreased $212,000 from the third quarter 2024. Within this category, credit card reward redemption expense decreased $147,000 and attorney fees decreased $106,000 compared to the third quarter 2024. Automated teller machine and interchange expense of $348,000 decreased $162,000 from the third quarter 2024, including the impact of incentive-related credits offset against a portion of expense in the fourth quarter 2024. The income tax provision of $1,947,000, or 19.2% of pre-tax income for the fourth quarter 2024 increased $499,000 from $1,448,000, or 18.5% of pre-tax income, for the third quarter 2024 reflecting an increase in pre-tax income for the quarter. Fourth Quarter 2024 as Compared to Fourth Quarter 2023 Fourth quarter 2024 net income was $8,174,000, or $0.53 per diluted share, as compared to $4,261,000, or $0.28 per diluted share, in the fourth quarter 2023. As previously described, in December 2023 , C&N repositioned its available-for-sale securities portfolio and its investments in BOLI resulting in a net charge to earnings of approximately $1,253,000, or $0.08 per diluted share in the fourth quarter 2023. Significant variances were as follows: Net interest income of $20,473,000 in the fourth quarter 2024 was $879,000 higher than in the fourth quarter 2023. Average earning assets were $121,959,000 higher in the fourth quarter 2024 as compared to the fourth quarter 2023 as average total deposits increased $109,831,000. The net interest margin was 3.30% in the fourth quarter 2024 as compared to 3.31% in the fourth quarter 2023. The interest rate spread decreased 0.06%, as the average rate on interest-bearing liabilities increased 0.32%, while the average yield on earning assets increased 0.26%. The credit for credit losses was $531,000 for the fourth quarter 2024, as described in more detail above, compared to a provision for credit losses of $951,000 in the fourth quarter 2023. The ACL as a percentage of gross loans receivable decreased to 1.06% at December 31, 2024 as compared to 1.08% at September 30, 2024. In comparison, in the fourth quarter 2023, the ACL increased to 1.04% as a percentage of gross loans receivable at December 31, 2023 from 0.99% at September 30, 2023. Noninterest income of $7,547,000 in the fourth quarter 2024 decreased $1,173,000 from the fourth quarter 2023 amount excluding realized losses on securities. Significant variances included the following: Earnings from the increase in cash surrender value of life insurance of $458,000 decreased $1,795,000 from the fourth quarter 2023 as the fourth quarter 2023 included the recognition of $2,100,000 in income from a one-time enhancement on a purchase of BOLI. Excluding the impact of income from the enhancement in 2023, earnings from the increase in cash surrender value of life insurance increased $305,000 reflecting the increase in the average balance of BOLI to $50,923,000 in the fourth quarter 2024 from $32,980,000 in the fourth quarter 2023. Brokerage and insurance revenue of $682,000 increased $196,000 due to an increase in sales volume. Trust revenue of $2,071,000 increased $158,000 consistent with appreciation in the trading prices of many U.S. equity securities and includes revenue from new business. Net gains from sale of loans of $372,000 increased $99,000 from the fourth quarter 2023, reflecting an increase in volume of residential mortgage loans sold. Service charges on deposit accounts of $1,531,000 increased $85,000 reflecting an increase in volume of fees. Loan servicing fees, net of $215,000 increased $79,000, including an increase in the fair value of servicing rights of $8,000 in the fourth quarter 2024 as compared to a decrease of $64,000 in the fourth quarter 2023. There were no net losses on available-for-sale debt securities in fourth quarter 2024 compared to $3,042,000 in the fourth quarter 2023. C&N sold available-for-sale debt securities with an amortized cost basis of $45.5 million in December 2023 in connection with a repositioning of available-for-sale securities and BOLI investments. Noninterest expense of $18,430,000 in the fourth quarter 2024 increased $31,000 from the fourth quarter 2023. Significant variances included the following: Other noninterest expense of $2,425,000 decreased $365,000 from the fourth quarter 2023. Included in this category was other operational losses which for the fourth quarter 2023 included an accrued charge of $427,000 related to a trust department tax compliance matter with no comparable amount in the fourth quarter 2024. Salaries and employee benefits expense of $11,470,000 increased $357,000, including an increase of $454,000 in cash and stock-based incentive compensation and an increase of $140,000 in wealth management-related commission s while expense related to the Employee Stock Ownership Plan decreased $137,000. The income tax provision of $1,947,000, or 19.2% of pre-tax income, for the fourth quarter 2024 increased $286,000 from $1,661,000 or 28.0% of pre-tax income, for the fourth quarter 2023 consistent with the increase in pre-tax income. The higher effective tax rate in the fourth quarter 2023 reflects the net impact of a tax charge of $950,000 from the initiated surrender of BOLI partially offset by the non-taxable income of $2,100,000 from the one-time enhancement on the purchase of BOLI. Year Ended December 31, 2024 as Compared to Year Ended December 31, 2023 Net income for the year ended December 31, 2024 was $25,958,000, or $1.69 per diluted share, as compared to $24,148,000, or $1.57 per diluted share, for the year ended December 31 2023. As previously described, results for 2023 included the impact of a $1,253,000 charge, which reduced diluted earnings per share by $0.08, related to the repositioning of available-for-sale securities and BOLI. Significant variances were as follows: Net interest income totaled $79,115,000 for the year ended December 31, 2024, a decrease of $1,285,000 from 2023. The net interest margin was 3.30% in 2024, down from 3.47% in 2023. The interest rate spread decreased 0.32%, as the average rate on interest-bearing liabilities was higher by 0.75% while the average yield on earning assets increased 0.43%. Average total earning assets increased $81,866,000. Average total loans increased $88,973,000 (5.0%) and average total deposits increased $85,644,000 (4.3%). For the year ended December 31, 2024, the provision for credit losses was $2,195,000, compared to $186,000 in 2023. For the year ended December 31, 2024, the provision related to loans receivable included the impact of a net increase in the ACL related to qualitative factors, partially offset by a decrease in total specific allowances on individual loans and decreases in other components of the ACL. The ACL increased $827,000 to 1.06% of loans receivable at December 31, 2024 as compared to 1.04% at December 31, 2023. For the year ended December 31, 2024, net charge-offs totaled $1,603,000, or 0.09% of average loans receivable as compared to $264,000 or 0.01% of gross loans receivable for 2023. Noninterest income totaled $29,209,000 for the year ended December 31, 2024, up $1,756,000 from the total excluding related losses on securities for the year ended December 31, 2023. Significant variances included the following: Earnings from the increase in cash surrender value of life insurance of $1,830,000 decreased $873,000 in 2024 from 2023. Included in 2023 was income from a one-time enhancement of $2,100,000 on BOLI purchased in December 2023. Excluding the impact of the income from the enhancement in 2023, earnings from the increase in cash surrender value of life insurance increased $1,227,000 reflecting the increase in the average balance of BOLI to $51,465,000 in 2024 from $31,808,000 in 2023. Other noninterest income of $5,230,000 increased $620,000 as dividends on FHLB-Pittsburgh and Federal Reserve stock totaled $1,743,000, an increase of $451,000, and income from tax credits related to donations increased $77,000. Brokerage and insurance revenue of $2,271,000 increased $596,000 due to an increase in sales volume. Trust revenue of $7,928,000 increased $515,000, consistent with appreciation in the trading prices of many U.S. equity securities and includes revenue from new business. Net gains from sale of loans of $1,158,000 increased $435,000, reflecting an increase in volume of residential mortgage loans sold. Service charges on deposit accounts of $5,867,000 increased $300,000 reflecting an increase in volume of fees. There were no net gains or losses on available-for-sale debt securities for the year ended December 31, 2024 compared to net losses on available-for-sale debt securities of $3,036,000 for the year ended December 31, 2023. The net losses on available-for-sale debt securities of $3,036,000 for the year ended December 31, 2023 were primarily from sales in the fourth quarter 2023 related to the repositioning of the portfolio. Noninterest expense totaled $74,258,000 for the year ended December 31, 2024, an increase of $110,000 from the total for the year ended December 31, 2023. Significant variances included the following: Other noninterest expense of $10,361,000 decreased $872,000. Within this category, significant variances included the following: Other operational losses included a net decrease in expense of $407,000 to $98,000 in other losses in 2024 from expense of $505,000 in 2023. Included in 2023 was $427,000 related to the previously referenced trust department tax compliance matter. In 2024, there was a reduction in expense of $527,000 related to the defined benefit postretirement medical benefit plan, including a curtailment of $469,000 related to plan adjustments in the first quarter 2024. In comparison, in 2023, there was a reduction in expense associated with the postretirement plan of $19,000. Donations expense increased $195,000 from 2023 including an increase of $133,000 in PA Educational Improvement Tax Credit Program donations and $50,000 in 2024 donations to benefit Northern Tier and Northcentral PA communities impacted by storm damage. Professional fees of $2,175,000 decreased $322,000 as 2023 included $389,000 of conversion costs related to a change in Wealth Management platform for providing brokerage and investment advisory services. Salaries and employee benefits expense of $44,930,000 increased $735,000, including an increase of $905,000 in cash and stock-based incentive compensation, an increase in base salaries expense of $630,000, or 2.1%, and an increase of $253,000 in wealth management-related commission s while there were decreases in expense related to the Employee Stock Ownership Plan of $579,000, health insurance expense of $361,000 and the Supplemental Executive Retirement Plan of $267,000. The income tax provision of $5,913,000, or 18.6% of pre-tax income for the year ended December 31, 2024 decreased $422,000 from $6,335,000, or 20.8% of pre-tax income for the year ended December 31, 2023. The higher effective tax rate in 2023 included the net impact of a tax charge of $950,000 related to the initiated surrender of BOLI, partially offset by the non-taxable income of $2,100,000 from the one-time enhancement on the purchase of BOLI. Other Information: Changes in other unaudited financial information are as follows: Total assets amounted to $2,610,653,000 at December 31, 2024, down from $2,670,822,000 at September 30, 2024 and up from $2,515,584,000 at December 31, 2023. Cash and due from banks totaled $126,174,000 at December 31, 2024, down from $184,213,000 at September 30, 2024 and up from $56,878,000 at December 31, 2023. The fair value of available-for-sale debt securities at December 31, 2024 was lower than the amortized cost basis by $47,543,000 or 10.6%. In comparison, the aggregate unrealized loss position was $38,970,000 (8.7%) at September 30, 2024 and $49,213,000 (10.6%) at December 31, 2023. The unrealized loss position of the portfolio has resulted from an increase in interest rates as compared to rates when the securities were purchased. 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 December 31, 2024 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 December 31, 2024. Gross loans receivable totaled $1,895,848,000 at December 31 2024, an increase of $3,084,000 from total loans at September 30, 2024 and an increase of $47,709,000 (2.6%) from total loans at December 31, 2023. In comparing outstanding balances at December 31, 2024 and 2023, total commercial loans were up $49,632,000 (3.6%), reflecting growth in owner occupied commercial real estate loans of $23,825,000, other commercial loans of $23,584,000 and non-owner occupied commercial real estate loans of $2,223,000. Within non-owner occupied commercial real estate loans, multi-family residential loans increased $41,098,000 reflecting the completion of several C&N financed construction projects in 2024. Total outstanding residential mortgage loans were down $5,705,000 (1.4%), and total consumer loans increased $3,782,000 (6.3%). The outstanding balance of residential mortgage loans originated and serviced by C&N that have been sold to third parties was $329.8 million at December 31, 2024, up $6.5 million (2.0%) from December 31, 2023. At December 31, 2024, 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 $102,831,000, or 5.4% of gross loans receivable. At December 31, 2024, within this segment there were two loans with a total recorded investment of $3,147,000 in nonaccrual status with no specific allowances. During the third quarter 2024, there was a partial charge-off of $640,000 on one of the office loans in nonaccrual status. The charge-off resulted from a decrease in the appraised value of property which is the primary source of collateral. At December 31, 2024, the carrying value of this loan was $1,814,000. 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 specific allowance at December 31, 2024. Total nonperforming assets as a percentage of total assets was 0.92% at December 31, 2024 and September 30, 2024, up from 0.75% at December 31, 2023. Total nonperforming assets were $24.1 million at December 31, 2024, down from $24.6 million at September 30, 2024 and up from $18.8 million at December 31, 2023. The increase in nonperforming assets at December 31, 2024 as compared to December 31, 2023 included the impact of classifying commercial construction and land loans to two borrowers with carrying balance totaling $6.7 million at December 31, 2024 as nonaccrual. Based on management's assessment, there was no valuation allowance on these loans at December 31, 2024. Deposits totaled $2,093,909,000 at December 31, 2024, down $41,970,000 (2.0%) from $2,135,879,000 at September 30, 2024, including a decrease in brokered deposits of $21,030,000. Total deposits were up $79,103,000 (3.9%) at December 31, 2024 as compared to December 31, 2023, despite a decrease in brokered deposits of $40,348,000. At December 31, 2024, C&N's estimated uninsured deposits totaled $632.8 million, or 30.0% of the Bank's total deposits, as compared to $592.2 million, or 29.2% of the Bank's total deposits at December 31, 2023. Included in uninsured deposits are deposits collateralized by securities (almost exclusively municipal deposits) totaling $162.0 million, or 7.7% of the Bank's total deposits, at December 31, 2024 as compared to $151.0 million, or 7.4% of the Bank's total deposits at December 31, 2023. C&N maintained highly liquid sources of available funds totaling $1.1 billion at December 31, 2024, including unused borrowing capacity with the Federal Home Loan Bank of Pittsburgh of $750.0 million, unused availability on the Federal Reserve Bank of Philadelphia's discount window of $18.1 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 $236.9 million. At December 31, 2024, available funding from these sources totaled 170.7% of uninsured deposits, and 229.4% 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 $207,669,000 at December 31, 2024, down $18,058,000 from September 30, 2024 and down $4,090,000 from December 31, 2023. Total stockholders' equity was $275,284,000 at December 31, 2024, down from $277,305,000 at September 30, 2024 and up from $262,381,000 at December 31, 2023. Within stockholders' equity, the portion of accumulated other comprehensive loss related to available-for-sale debt securities was $37,084,000 at December 31, 2024, $30,396,000 at September 30, 2024 and $38,878,000 at December 31, 2023. 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. On September 25, 2023, the Corporation announced a new treasury stock repurchase program. 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 December 31, 2024. During the year ended December 31, 2024, 26,034 shares were repurchased for a total cost of $443,000, at an average price of $17.02 per share. At December 31, 2024, there were 723,966 shares available to be repurchased under the program. Citizens & Northern Bank is subject to various regulatory capital requirements. At December 31, 2024, Citizens & Northern Bank maintains regulatory capital ratios that exceed all capital adequacy requirements. Management expects the Bank to remain well-capitalized for the foreseeable future. Trust assets under management by C&N's Wealth Management Group amounted to $1,347,853,000 at December 31, 2024, down 0.8% from $1,359,023,000 at September 30, 2024, and up 13.4% from $1,188,082,000 at December 31, 2023. 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 are reported at their 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 $217,000, $205,000 and $199,000 for the fourth quarter 2024, third quarter 2024 and fourth quarter 2023, respectively. The excess of net interest income on a fully taxable-equivalent basis over the amounts reported under U.S. GAAP was $819,000 for the year ended December 31, 2024 and $919,000 for the year ended December 31, 2023. Citizens & Northern Corporation is the bank holding company for Citizens & Northern Bank, headquartered in Wellsboro, Pennsylvania which operates 28 banking offices located in Bradford, Bucks, Cameron, Chester, Lycoming, Potter, Sullivan, Tioga, York and Lancaster 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. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including 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; and fraud and cyber malfunction risks as usage of artificial intelligence continues to expand. 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. EXHIBIT 99.2 - Supplemental, Unaudited Financial Information CONDENSED, CONSOLIDATED EARNINGS INFORMATION (Dollars In Thousands, Except Per Share Data) (Unaudited) 4TH 4TH QUARTER QUARTER 2024 2023 $ Incr. (Decr.) % Incr. (Decr.) Interest and Dividend Income $ 33,329 $ 30,236 $ 3,093 10.23 % Interest Expense 12,856 10,642 2,214 20.80 % Net Interest Income 20,473 19,594 879 4.49 % (Credit) Provision for Credit Losses (531) 951 (1,482) (155.84) % Net Interest Income After (Credit) Provision for Credit Losses 21,004 18,643 2,361 12.66 % Noninterest Income 7,547 8,720 (1,173) (13.45) % Net Realized Losses on Available-for-sale Debt Securities 0 (3,042) 3,042 (100.00) % Noninterest Expense 18,430 18,399 31 0.17 % Income Before Income Tax Provision 10,121 5,922 4,199 70.91 % Income Tax Provision 1,947 1,661 286 17.22 % Net Income $ 8,174 $ 4,261 $ 3,913 91.83 % Net Income Attributable to Common Shares (1) $ 8,103 $ 4,231 $ 3,872 91.52 % PER COMMON SHARE DATA: Net Income - Basic $ 0.53 $ 0.28 $ 0.25 89.29 % Net Income - Diluted $ 0.53 $ 0.28 $ 0.25 89.29 % Dividends Per Share $ 0.28 $ 0.28 $ 0.00 0.00 % Number of Shares Used in Computation - Basic 15,287,462 15,175,013 Number of Shares Used in Computation - Diluted 15,287,462 15,175,013 YEAR ENDED DECEMBER 31, 2024 2023 $ Incr. (Decr.) % Incr. (Decr.) Interest and Dividend Income $ 128,078 $ 113,504 $ 14,574 12.84 % Interest Expense 48,963 33,104 15,859 47.91 % Net Interest Income 79,115 80,400 (1,285) (1.60) % Provision for Credit Losses 2,195 186 2,009 1,080.11 % Net Interest Income After Provision for Credit Losses 76,920 80,214 (3,294) (4.11) % Noninterest Income 29,209 27,453 1,756 6.40 % Net Realized Losses on Available-for-sale Debt Securities 0 (3,036) 3,036 (100.00) % Noninterest Expense 74,258 74,148 110 0.15 % Income Before Income Tax Provision 31,871 30,483 1,388 4.55 % Income Tax Provision 5,913 6,335 (422) (6.66) % Net Income $ 25,958 $ 24,148 $ 1,810 7.50 % Net Income Attributable to Common Shares (1) $ 25,747 $ 23,962 $ 1,785 7.45 % PER COMMON SHARE DATA: Net Income - Basic $ 1.69 $ 1.57 $ 0.12 7.64 % Net Income - Diluted $ 1.69 $ 1.57 $ 0.12 7.64 % Dividends Per Share $ 1.12 $ 1.12 $ 0.00 0.00 % Number of Shares Used in Computation - Basic 15,262,504 15,241,859 Number of Shares Used in Computation - Diluted 15,262,504 15,241,859 (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. CONDENSED, CONSOLIDATED BALANCE SHEET DATA (Dollars In Thousands) (Unaudited) December 31, 2024 December 31, 2023 $ Incr. (Decr.) % Incr. (Decr.) ASSETS Cash & Due from Banks $ 126,174 $ 56,878 $ 69,296 121.83 % Available-for-sale Debt Securities 402,380 415,755 (13,375) (3.22)% Loans, Net 1,875,813 1,828,931 46,882 2.56 % Bank-Owned Life Insurance 51,214 63,674 (12,460) (19.57)% Bank Premises and Equipment, Net 21,338 21,632 (294) (1.36)% Deferred Tax Asset, Net 19,098 17,441 1,657 9.50 % Intangible Assets 54,585 54,974 (389) (0.71)% Other Assets 60,051 56,299 3,752 6.66 % TOTAL ASSETS $ 2,610,653 $ 2,515,584 $ 95,069 3.78 % LIABILITIES Deposits $ 2,093,909 $ 2,014,806 $ 79,103 3.93 % Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements 167,939 172,211 (4,272) (2.48)% Senior Notes, Net 14,899 14,831 68 0.46 % Subordinated Debt, Net 24,831 24,717 114 0.46 % Other Liabilities 33,791 26,638 7,153 26.85 % TOTAL LIABILITIES 2,335,369 2,253,203 82,166 3.65 % STOCKHOLDERS' EQUITY Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss 312,045 300,818 11,227 3.73 % Accumulated Other Comprehensive Loss: Net Unrealized Losses on Available-for-sale Debt Securities (37,084) (38,878) 1,794 (4.61)% Defined Benefit Plans 323 441 (118) (26.76)% TOTAL STOCKHOLDERS' EQUITY 275,284 262,381 12,903 4.92 % TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 2,610,653 $ 2,515,584 $ 95,069 3.78 % CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars In Thousands, Except Per Share Data) (Unaudited) FOR THE THREE MONTHS ENDED % December 31, INCREASE 2024 2023 (DECREASE) EARNINGS PERFORMANCE Net Income $ 8,174 $ 4,261 91.83 % Return on Average Assets (Annualized) 1.24 % 0.69 % 79.71 % Return on Average Equity (Annualized) 11.87 % 7.03 % 68.85 % PRE-TAX, PRE-PROVISION NET REVENUE ("PPNR") - NON-GAAP (a) PPNR $ 9,807 $ 8,014 22.37 % PPNR (Annualized) as a % of Average Assets 1.48 % 1.29 % 14.73 % PPNR (Annualized) as a % of Average Equity 14.24 % 13.22 % 7.72 % AS OF OR FOR THE YEAR ENDED % December 31, INCREASE 2024 2023 (DECREASE) EARNINGS PERFORMANCE - U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP") Net Income $ 25,958 $ 24,148 7.50 % Return on Average Assets (Annualized) 1.00 % 0.98 % 2.04 % Return on Average Equity (Annualized) 9.76 % 9.72 % 0.41 % PPNR - NON-GAAP (a) PPNR $ 34,885 $ 32,524 7.26 % PPNR (Annualized) as a % of Average Assets 1.35 % 1.32 % 2.27 % PPNR (Annualized) as a % of Average Equity 13.12 % 13.09 % 0.23 % BALANCE SHEET HIGHLIGHTS Total Assets $ 2,610,653 $ 2,515,584 3.78 % Available-for-Sale Debt Securities 402,380 415,755 (3.22) % Loans, Net 1,875,813 1,828,931 2.56 % Allowance for Credit Losses: Allowance for Credit Losses on Loans 20,035 19,208 4.31 % Allowance for Credit Losses on Off-Balance Sheet Exposures 455 690 (34.06) % Deposits 2,093,909 2,014,806 3.93 % OFF-BALANCE SHEET Outstanding Balance of Mortgage Loans Sold with Servicing Retained $ 329,766 $ 323,298 2.00 % Trust Assets Under Management 1,347,853 1,188,082 13.45 % STOCKHOLDERS' VALUE (PER COMMON SHARE) Net Income - Basic $ 1.69 $ 1.57 7.64 % Net Income - Diluted $ 1.69 $ 1.57 7.64 % Dividends $ 1.12 $ 1.12 0.00 % Common Book Value $ 17.84 $ 17.15 4.02 % Tangible Common Book Value - NON-GAAP (b) $ 14.30 $ 13.56 5.46 % Market Value (Last Trade) $ 18.60 $ 22.43 (17.08) % Market Value / Common Book Value 104.26 % 130.79 % (20.28) % Market Value / Tangible Common Book Value - NON-GAAP (b) 130.07 % 165.41 % (21.37) % Price Earnings Multiple 11.01 14.29 (22.95) % Dividend Yield (Annualized) 6.02 % 4.99 % 20.64 % Common Shares Outstanding, End of Period 15,433,494 15,295,135 0.90 % CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued) (Dollars In Thousands, Except Per Share Data) (Unaudited) AS OF OR FOR THE YEAR ENDED % December 31, INCREASE 2024 2023 (DECREASE) SAFETY AND SOUNDNESS Tangible Common Equity / Tangible Assets (b) 8.63 % 8.43 % 2.37 % Nonperforming Assets / Total Assets 0.92 % 0.75 % 22.67 % Allowance for Credit Losses / Total Loans 1.06 % 1.04 % 1.92 % Total Risk Based Capital Ratio (c) 15.95 % 15.69 % 1.66 % Tier 1 Risk Based Capital Ratio (c) 13.56 % 13.28 % 2.11 % Common Equity Tier 1 Risk Based Capital Ratio (c) 13.56 % 13.28 % 2.11 % Leverage Ratio (c) 9.80 % 9.88 % (0.81) % AVERAGE BALANCES Average Assets $ 2,583,106 $ 2,462,856 4.88 % Average Equity $ 265,884 $ 248,494 7.00 % EFFICIENCY RATIO - NON-GAAP (d) Net Interest Income on a Fully Taxable-Equivalent Basis (d) $ 79,934 $ 81,319 (1.70) % Noninterest Income, Excluding Net Realized Losses on Available-for-sale Debt Securities 29,209 27,453 6.40 Less: Enhancement Fee Included in Noninterest Income Related to Purchase of Bank-Owned Life Insurance 0 (2,100) (100.00) % Total (1) $ 109,143 $ 106,672 2.32 % Noninterest Expense (2) $ 74,258 $ 74,148 0.15 % Efficiency Ratio = (2)/(1) 68.04 % 69.51 % (2.11) % 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 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: Total Assets $ 2,610,653 $ 2,515,584 Less: Intangible Assets, Primarily Goodwill (54,585) (54,974) Tangible Assets $ 2,556,068 $ 2,460,610 Total Stockholders' Equity $ 275,284 $ 262,381 Less: Intangible Assets, Primarily Goodwill (54,585) (54,974) Tangible Common Equity (3) $ 220,699 $ 207,407 Common Shares Outstanding, End of Period (4) 15,433,494 15,295,135 Tangible Common Book Value per Share = (3)/(4) $ 14.30 $ 13.56 Capital ratios for the most recent period are estimated. 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 below 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, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Interest income $ 33,329 $ 33,087 $ 31,326 $ 30,336 $ 30,236 Interest expense 12,856 12,931 11,881 11,295 10,642 Net interest income 20,473 20,156 19,445 19,041 19,594 (Credit) provision for credit losses (531) 1,207 565 954 951 Net interest income after (credit) provision for credit losses 21,004 18,949 18,880 18,087 18,643 Noninterest income 7,547 7,133 7,854 6,675 8,720 Net realized (losses) on securities 0 0 0 0 (3,042) Noninterest expense 18,430 18,269 19,255 18,304 18,399 Income before income tax provision 10,121 7,813 7,479 6,458 5,922 Income tax provision 1,947 1,448 1,366 1,152 1,661 Net income $ 8,174 $ 6,365 $ 6,113 $ 5,306 $ 4,261 Net income attributable to common shares $ 8,103 $ 6,311 $ 6,066 $ 5,267 $ 4,231 Basic earnings per common share $ 0.53 $ 0.41 $ 0.40 $ 0.35 $ 0.28 Diluted earnings per common share $ 0.53 $ 0.41 $ 0.40 $ 0.35 $ 0.28 QUARTERLY CONDENSED, CONSOLIDATED BALANCE SHEET INFORMATION (In Thousands) (Unaudited) As of: Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2024 2024 2024 2024 2023 ASSETS Cash & Due from Banks $ 126,174 $ 184,213 $ 100,412 $ 46,448 $ 56,878 Available-for-Sale Debt Securities 402,380 408,422 401,145 405,094 415,755 Loans, Net 1,875,813 1,872,322 1,872,825 1,852,426 1,828,931 Bank-Owned Life Insurance 51,214 50,757 50,301 49,857 63,674 Bank Premises and Equipment, Net 21,338 21,537 21,966 21,852 21,632 Deferred Tax Asset, Net 19,098 17,047 18,375 17,703 17,441 Intangible Assets 54,585 54,682 54,779 54,877 54,974 Other Assets 60,051 61,842 73,319 73,280 56,299 TOTAL ASSETS $ 2,610,653 $ 2,670,822 $ 2,593,122 $ 2,521,537 $ 2,515,584 LIABILITIES Deposits (1) $ 2,093,909 $ 2,135,879 $ 2,059,309 $ 1,995,903 $ 2,014,806 Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements 167,939 186,043 202,523 197,655 172,211 Senior Notes, Net 14,899 14,882 14,865 14,848 14,831 Subordinated Debt, Net 24,831 24,802 24,773 24,745 24,717 Other Liabilities 33,791 31,911 28,431 26,730 26,638 TOTAL LIABILITIES 2,335,369 2,393,517 2,329,901 2,259,881 2,253,203 STOCKHOLDERS' EQUITY Common Stockholders' Equity, Excluding Accumulated Other Comprehensive Loss 312,045 307,369 304,582 302,362 300,818 Accumulated Other Comprehensive Loss: Net Unrealized Losses on Available-for-sale Debt Securities (37,084) (30,396) (41,710) (41,071) (38,878) Defined Benefit Plans 323 332 349 365 441 TOTAL STOCKHOLDERS' EQUITY 275,284 277,305 263,221 261,656 262,381 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 2,610,653 $ 2,670,822 $ 2,593,122 $ 2,521,537 $ 2,515,584 (1) Brokered Deposits (Included in Total Deposits) $ 24,021 $ 45,051 $ 59,501 $ 69,391 $ 64,369 AVAILABLE-FOR-SALE DEBT SECURITIES (In Thousands) December 31, 2024 September 30, 2024 December 31, 2023 Amortized Fair Amortized Fair Amortized Fair Cost Value Cost Value Cost Value Obligations of the U.S. Treasury $ 8,067 $ 7,118 $ 8,072 $ 7,321 $ 12,325 $ 11,290 Obligations of U.S. Government agencies 10,154 9,025 10,271 9,376 11,119 9,946 Bank holding company debt securities 28,958 25,246 28,956 23,949 28,952 23,500 Obligations of states and political subdivisions: Tax-exempt 111,995 101,302 113,093 104,936 113,464 104,199 Taxable 51,147 42,506 55,182 48,434 58,720 50,111 Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: Residential pass-through securities 104,378 94,414 101,545 94,053 105,549 95,405 Residential collateralized mortgage obligations 53,389 49,894 48,251 45,601 50,212 46,462 Commercial mortgage-backed securities 73,470 64,501 73,695 66,390 76,412 66,682 Private label commercial mortgage-backed securities 8,365 8,374 8,327 8,362 8,215 8,160 Total Available-for-Sale Debt Securities $ 449,923 $ 402,380 $ 447,392 $ 408,422 $ 464,968 $ 415,755 SUMMARY OF LOANS BY TYPE (Excludes Loans Held for Sale) (In Thousands) December 31, September 30, December 31, 2024 2024 2023 Commercial real estate - non-owner occupied: Non-owner occupied $ 471,171 $ 470,383 $ 499,104 Multi-family (5 or more) residential 105,174 87,487 64,076 1-4 Family - commercial purpose 163,220 163,233 174,162 Total commercial real estate - non-owner occupied 739,565 721,103 737,342 Commercial real estate - owner occupied 261,071 266,477 237,246 All other commercial loans: Commercial and industrial 96,665 93,205 78,832 Commercial lines of credit 120,078 128,461 117,236 Political subdivisions 94,009 85,479 79,031 Commercial construction and land 92,741 105,255 104,123 Other commercial loans 19,784 19,585 20,471 Total all other commercial loans 423,277 431,985 399,693 Residential mortgage loans: 1-4 Family - residential 383,797 383,482 389,262 1-4 Family residential construction 24,212 23,947 24,452 Total residential mortgage 408,009 407,429 413,714 Consumer loans: Consumer lines of credit (including HELCs) 47,196 43,624 41,503 All other consumer 16,730 22,146 18,641 Total consumer 63,926 65,770 60,144 Total 1,895,848 1,892,764 1,848,139 Less: allowance for credit losses on loans (20,035) (20,442) (19,208) Loans, net $ 1,875,813 $ 1,872,322 $ 1,828,931 NON-OWNER OCCUPIED COMMERCIAL REAL ESTATE (In Thousands) Loan Type December 31, % of Non-owner % of 2024 Occupied CRE Total Loans Office $ 102,831 21.8 % 5.4 % Retail 96,142 20.4 % 5.1 % Industrial 79,839 16.9 % 4.2 % Hotels 70,229 14.9 % 3.7 % Mixed Use 60,837 12.9 % 3.2 % Other 61,293 13.0 % 3.2 % Total Non-owner Occupied CRE Loans $ 471,171 Total Gross Loans $ 1,895,848 PAST DUE LOANS AND NONPERFORMING ASSETS (Dollars In Thousands) December 31, September 30, December 31, 2024 2024 2023 Loans individually evaluated with a valuation allowance $ 258 $ 1,622 $ 7,786 Loans individually evaluated without a valuation allowance 18,843 18,069 3,478 Total individually evaluated loans $ 19,101 $ 19,691 $ 11,264 Total loans past due 30-89 days and still accruing $ 5,658 $ 15,906 $ 9,275 Nonperforming assets: Total nonaccrual loans $ 23,842 $ 24,401 $ 15,177 Total loans past due 90 days or more and still accruing 119 56 3,190 Total nonperforming loans 23,961 24,457 18,367 Foreclosed assets held for sale (real estate) 181 181 478 Total nonperforming assets $ 24,142 $ 24,638 $ 18,845 Total nonperforming loans as a % of total loans 1.26 % 1.29 % 0.99 % Total nonperforming assets as a % of assets 0.92 % 0.92 % 0.75 % Allowance for credit losses as a % of total loans 1.06 % 1.08 % 1.04 % 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, 2024 2024 2024 2023 Balance, beginning of period $ 20,442 $ 20,382 $ 19,208 $ 16,615 Adoption of ASU 2016-13 (CECL) 0 0 0 2,104 Charge-offs (32) (1,268) (1,716) (356) Recoveries 18 31 113 92 Net charge-offs (14) (1,237) (1,603) (264) (Credit) provision for credit losses on loans (393) 1,297 2,430 753 Balance, end of period $ 20,035 $ 20,442 $ 20,035 $ 19,208 Net charge-offs as a % of average gross loans 0.09 % 0.01 % ANALYSIS OF THE (CREDIT) PROVISION FOR CREDIT LOSSES (In Thousands) 3 Months 3 Months Year Year Ended Ended Ended Ended December 31, September 30, December 31, December 31, 2024 2024 2024 2023 Provision (credit) for credit losses: Loans receivable $ (393) $ 1,297 $ 2,430 $ 753 Off-balance sheet exposures (138) (90) (235) (567) Total (credit) provision for credit losses $ (531) $ 1,207 $ 2,195 $ 186 PPNR NON- GAAP RECONCILIATION (In Thousands) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, Calculation of PPNR: 2024 2024 2023 2024 2023 Net Income (GAAP) $ 8,174 $ 6,365 $ 4,261 $ 25,958 $ 24,148 Add: Provision for income taxes 1,947 1,448 1,661 5,913 6,335 Add: (Credit) provision for credit losses (531) 1,207 951 2,195 186 Less: Enhancement fee included in noninterest income related to purchase of Bank-Owned Life Insurance 0 0 (2,100) 0 (2,100) Add: Realized losses on available-for-sale securities debt securities 0 0 3,042 0 3,036 Add: Adjustments to reflect net interest income on a fully taxable-equivalent basis 217 205 199 819 919 PPNR (non-GAAP) $ 9,807 $ 9,225 $ 8,014 $ 34,885 $ 32,524 COMPARISON OF INTEREST INCOME AND EXPENSE (In Thousands) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 INTEREST INCOME Interest-bearing due from banks $ 1,786 $ 1,622 $ 447 $ 4,307 $ 1,379 Available-for-sale debt securities: Taxable 2,184 2,136 2,115 8,593 8,555 Tax-exempt 644 638 654 2,531 2,815 Total available-for-sale debt securities 2,828 2,774 2,769 11,124 11,370 Loans receivable: Taxable 28,104 28,099 26,532 110,396 98,846 Tax-exempt 795 749 663 2,944 2,764 Total loans receivable 28,899 28,848 27,195 113,340 101,610 Other earning assets 33 48 24 126 64 Total Interest Income 33,546 33,292 30,435 128,897 114,423 INTEREST EXPENSE Interest-bearing deposits: Interest checking 3,269 3,240 2,809 12,151 7,668 Money market 2,333 2,159 2,032 8,589 5,686 Savings 50 50 57 207 243 Time deposits 4,931 4,963 3,742 18,253 10,636 Total interest-bearing deposits 10,583 10,412 8,640 39,200 24,233 Borrowed funds: Short-term 27 184 322 1,168 3,240 Long-term - FHLB advances 1,894 1,983 1,329 7,188 4,230 Senior notes, net 121 120 120 481 479 Subordinated debt, net 231 232 231 926 922 Total borrowed funds 2,273 2,519 2,002 9,763 8,871 Total Interest Expense 12,856 12,931 10,642 48,963 33,104 Net Interest Income $ 20,690 $ 20,361 $ 19,793 $ 79,934 $ 81,319 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 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Net Interest Income Under U.S. GAAP $ 20,473 $ 20,156 $ 19,594 $ 79,115 $ 80,400 Add: fully taxable-equivalent interest income adjustment from tax-exempt securities 69 66 74 271 388 Add: fully taxable-equivalent interest income adjustment from tax-exempt loans 148 139 125 548 531 Net Interest Income as adjusted to a fully taxable-equivalent basis $ 20,690 $ 20,361 $ 19,793 $ 79,934 $ 81,319 ANALYSIS OF AVERAGE DAILY BALANCES AND RATES (Dollars in Thousands) 3 Months Ended Rate of 3 Months Ended Rate of 3 Months Ended Rate of 12/31/2024 Return/ 9/30/2024 Return/ 12/31/2023 Return/ Average Cost of Average Cost of Average Cost of Balance Funds % Balance Funds % Balance Funds % EARNING ASSETS Interest-bearing due from banks $ 150,003 4.74 % $ 119,885 5.38 % $ 37,555 4.72 % Available-for-sale debt securities, at amortized cost: Taxable 333,376 2.61 % 336,246 2.53 % 372,797 2.25 % Tax-exempt 112,686 2.27 % 113,514 2.24 % 121,143 2.14 % Total available-for-sale debt securities 446,062 2.52 % 449,760 2.45 % 493,940 2.22 % Loans receivable: Taxable 1,800,732 6.21 % 1,797,224 6.22 % 1,752,047 6.01 % Tax-exempt 92,440 3.42 % 91,246 3.27 % 84,349 3.12 % Total loans receivable 1,893,172 6.07 % 1,888,470 6.08 % 1,836,396 5.88 % Other earning assets 2,147 6.11 % 3,076 6.21 % 1,534 6.21 % Total Earning Assets 2,491,384 5.36 % 2,461,191 5.38 % 2,369,425 5.10 % Cash 20,988 24,987 21,019 Unrealized loss on securities (42,753) (47,806) (72,605) Allowance for credit losses (20,750) (20,643) (18,575) Bank-owned life insurance 50,923 50,470 32,980 Bank premises and equipment 21,488 21,793 21,532 Intangible assets 54,632 54,730 55,025 Other assets 70,976 73,320 78,558 Total Assets $ 2,646,888 $ 2,618,042 $ 2,487,359 INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest checking $ 573,133 2.27 % $ 543,288 2.37 % $ 521,432 2.14 % Money market 373,558 2.48 % 356,487 2.41 % 354,854 2.27 % Savings 193,554 0.10 % 198,312 0.10 % 218,810 0.10 % Time deposits 490,363 4.00 % 485,708 4.07 % 429,898 3.45 % Total interest-bearing deposits 1,630,608 2.58 % 1,583,795 2.62 % 1,524,994 2.25 % Borrowed funds: Short-term 3,852 2.79 % 15,038 4.87 % 24,196 5.28 % Long-term - FHLB advances 169,346 4.45 % 181,075 4.36 % 132,089 3.99 % Senior notes, net 14,889 3.23 % 14,875 3.21 % 14,822 3.21 % Subordinated debt, net 24,819 3.70 % 24,787 3.72 % 24,704 3.71 % Total borrowed funds 212,906 4.25 % 235,775 4.25 % 195,811 4.06 % Total Interest-bearing Liabilities 1,843,514 2.77 % 1,819,570 2.83 % 1,720,805 2.45 % Demand deposits 496,161 500,859 491,944 Other liabilities 31,763 29,226 32,122 Total Liabilities 2,371,438 2,349,655 2,244,871 Stockholders' equity, excluding accumulated other comprehensive loss 308,472 305,808 299,401 Accumulated other comprehensive loss (33,022) (37,421) (56,913) Total Stockholders' Equity 275,450 268,387 242,488 Total Liabilities and Stockholders' Equity $ 2,646,888 $ 2,618,042 $ 2,487,359 Interest Rate Spread 2.59 % 2.55 % 2.65 % Net Interest Income/Earning Assets 3.30 % 3.29 % 3.31 % Total Deposits (Interest-bearing and Demand) $ 2,126,769 $ 2,084,654 $ 2,016,938 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%. 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. ANALYSIS OF AVERAGE DAILY BALANCES AND RATES (Dollars in Thousands) Year Ended Rate of Year Ended Rate of 12/31/2024 Return/ 12/31/2023 Return/ Average Balance Cost of Funds % Average Balance Cost of Funds% EARNING ASSETS Interest-bearing due from banks $ 86,703 4.97 % $ 32,709 4.22 % Available-for-sale debt securities, at amortized cost: Taxable 340,339 2.52 % 389,456 2.20 % Tax-exempt 113,121 2.24 % 125,920 2.24 % Total available-for-sale debt securities 453,460 2.45 % 515,376 2.21 % Loans receivable: Taxable 1,791,187 6.16 % 1,703,839 5.80 % Tax-exempt 89,935 3.27 % 88,310 3.12 % Total loans receivable 1,881,122 6.03 % 1,792,149 5.67 % Other earning assets 2,198 5.73 % 1,383 4.63 % Total Earning Assets 2,423,483 5.32 % 2,341,617 4.89 % Cash 22,209 22,108 Unrealized loss on securities (49,520) (63,118) Allowance for credit losses (20,294) (18,498) Bank-owned life insurance 51,465 31,808 Bank premises and equipment 21,765 21,330 Intangible assets 54,778 55,176 Other assets 79,220 72,433 Total Assets $ 2,583,106 $ 2,462,856 INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest checking $ 537,233 2.26 % $ 488,761 1.57 % Money market 358,274 2.40 % 347,130 1.64 % Savings 203,129 0.10 % 238,760 0.10 % Time deposits 465,882 3.92 % 381,488 2.79 % Total interest-bearing deposits 1,564,518 2.51 % 1,456,139 1.66 % Borrowed funds: Short-term 22,743 5.14 % 62,926 5.15 % Long-term - FHLB advances 167,181 4.30 % 110,943 3.81 % Senior notes, net 14,865 3.24 % 14,798 3.24 % Subordinated debt, net 24,774 3.74 % 24,662 3.74 % Total borrowed funds 229,563 4.25 % 213,329 4.16 % Total Interest-bearing Liabilities 1,794,081 2.73 % 1,669,468 1.98 % Demand deposits 493,052 515,787 Other liabilities 30,089 29,107 Total Liabilities 2,317,222 2,214,362 Stockholders' equity, excluding accumulated other comprehensive loss 304,532 297,894 Accumulated other comprehensive loss (38,648) (49,400) Total Stockholders' Equity 265,884 248,494 Total Liabilities and Stockholders' Equity $ 2,583,106 $ 2,462,856 Interest Rate Spread 2.59 % 2.91 % Net Interest Income/Earning Assets 3.30 % 3.47 % Total Deposits (Interest-bearing and Demand) $ 2,057,570 $ 1,971,926 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%. 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, 2024 2024 2023 2024 2023 Trust revenue $ 2,071 $ 1,946 $ 1,913 $ 7,928 $ 7,413 Brokerage and insurance revenue 682 523 486 2,271 1,675 Service charges on deposit accounts 1,531 1,546 1,446 5,867 5,567 Interchange revenue from debit card transactions 1,071 1,103 1,045 4,276 4,160 Net gains from sales of loans 372 360 273 1,158 723 Loan servicing fees, net 215 74 136 649 602 Increase in cash surrender value of life insurance 458 458 2,253 1,830 2,703 Other noninterest income 1,147 1,123 1,168 5,230 4,610 Total noninterest income, excluding realized losses on securities, net $ 7,547 $ 7,133 $ 8,720 $ 29,209 $ 27,453 COMPARISON OF NONINTEREST EXPENSE (In Thousands) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2024 2024 2023 2024 2023 Salaries and employee benefits $ 11,470 $ 10,875 $ 11,113 $ 44,930 $ 44,195 Net occupancy and equipment expense 1,313 1,377 1,364 5,473 5,357 Data processing and telecommunications expenses 1,891 1,882 1,923 7,768 7,582 Automated teller machine and interchange expense 348 510 308 1,818 1,682 Pennsylvania shares tax 433 433 392 1,733 1,602 Professional fees 550 555 509 2,175 2,497 Other noninterest expense 2,425 2,637 2,790 10,361 11,233 Total noninterest expense $ 18,430 $ 18,269 $ 18,399 $ 74,258 $ 74,148 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 30, Dec. 31, 2024 2024 2023 2024 2024 2023 2024 2024 2023 Federal Home Loan Bank of Pittsburgh $ 188,692 $ 207,858 $ 189,021 $ 749,999 $ 737,284 $ 737,824 $ 938,691 $ 945,142 $ 926,845 Federal Reserve Bank Discount Window 0 0 0 18,093 18,602 19,982 18,093 18,602 19,982 Other correspondent banks 0 0 0 75,000 75,000 75,000 75,000 75,000 75,000 Total credit facilities $ 188,692 $ 207,858 $ 189,021 $ 843,092 $ 830,886 $ 832,806 $ 1,031,784 $ 1,038,744 $ 1,021,827 Uninsured Deposits Information December 31, September 30, December 31, 2024 2024 2023 Total Deposits - C&N Bank $ 2,111,547 $ 2,152,136 $ 2,030,909 Estimated Total Uninsured Deposits $ 632,804 $ 655,569 $ 592,206 Portion of Uninsured Deposits that are Collateralized 161,958 183,274 151,031 Uninsured and Uncollateralized Deposits $ 470,846 $ 472,295 $ 441,175 Uninsured and Uncollateralized Deposits as a % of Total Deposits 22.3 % 21.9 % 21.7 % Available Funding from Credit Facilities $ 843,092 $ 830,886 $ 832,806 Fair Value of Available-for-sale Debt Securities in Excess of Pledging Obligations 236,945 223,060 256,058 Highly Liquid Available Funding $ 1,080,037 $ 1,053,946 $ 1,088,864 Highly Liquid Available Funding as a % of Uninsured Deposits 170.7 % 160.8 % 183.9 % Highly Liquid Available Funding as a % of Uninsured and Uncollateralized Deposits 229.4 % 223.2 % 246.8 %

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