Earnings release
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1 Exhibit 99 Contact: Charity Frantz October 22, 2026 570-724-0225 charityf@cnbankpa.com C&N ANNOUNCES RECORD QUARTERLY EARNINGS AND DECLARES INCREASE IN DIVIDEND 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 nine-month periods ended September 30, 2026. C&N’s principal activity is community banking, and its largest subsidiary is Citizens & Northern Bank (the “Bank”). Brad Scovill, C&N’s President and CEO noted, “I am pleased with our record third quarter 2026 unaudited net income of $16.3 million or $0.92 per share. We experienced net interest income growth, 6 basis points of net interest margin expansion, our efficiency ratio for the quarter dropped to 56.11% and net charge-offs were low at 0.07% of average loans receivable. Results for the quarter included a benefit from a credit for credit losses that was caused mainly by changes in qualitative factors; having said that, we also experienced a reduction in nonperforming loans as we continue to make positive progress on loan workout situations. Pre-tax, pre-provision net revenue, which excludes the impact of the credit for credit losses, increased $1.6 million quarter-over-quarter. Although total loans receivable dropped for the second consecutive quarter due to pay-offs of a few larger loans, our origination levels have been reasonably strong and we remain optimistic about prospects for loan growth going forward. In light of our Board’s confidence in C&N’s prospects for continued strong earnings performance, we are pleased to announce a $0.02 per share increase in our regular quarterly cash dividend, raising the payout to $0.30 per share. This dividend increase reflects our ongoing commitment to creating value for our shareholders.” Dividend Declared On October 22, 2026, C&N’s Board of Directors declared a regular quarterly cash dividend of $0.30 per share payable November 13, 2026, to shareholders of record as of November 2, 2026. The amount is increased by $0.02 from the previous dividend that was declared in July 2026 and paid in August 2026. Highlights: ● Net income was $16,285,000, or $0.92 per diluted share for the third quarter 2026 as compared to $14,057,000, or $0.79 per diluted share for the second quarter 2026 and $6,551,000, or $0.42 per diluted share in the third quarter 2025. Net income for the nine months ended September 30, 2026 was $30,615,000, or $1.72 diluted earnings per share, up from $18,961,000, or $1.22 diluted earnings per share for the first nine months of 2025. ● Pre-tax, pre-provision net revenue (“PPNR”), a non-GAAP financial measure, was $17,464,000 for the third quarter 2026 as compared to $15,815,000 for the second quarter 2026 and $11,278,000 for the third quarter of 2025. PPNR was $47,421,000 for the nine months ended September 30 2026 as compared to $29,702,000 for the nine months ended September 30, 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 included the net impact of growth in net interest income, noninterest income and noninterest expense resulting from C&N’s acquisition of Susquehanna Community Financial, Inc. (“Susquehanna”) on October 1, 2025. PPNR includes net interest income and noninterest income, net of noninterest expense, but excludes the (credit) provision for credit losses, realized gains or losses on securities, the income tax provision, merger-related expenses and other nonrecurring items included in earnings. See Table 13 for additional information and Non-GAAP reconciliation. ● C&N recorded a credit for credit losses (reduction in expense) of $3,171,000 in the third quarter 2026 and $1,846,000 in the second quarter 2026. The credit for credit losses in the third quarter 2026 included the impact on the allowance for credit losses (“ACL”) of changes in qualitative factors and a reduction in loans receivable. The credit for credit losses in the second quarter 2026 included the impact on the allowance for credit losses (“ACL”) of changes in qualitative factors, net recoveries of $403,000 and a reduction in loans receivable. For the nine months ended September 30, 2026, the
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2 provision for credit losses was $8,585,000, up from $4,753,000 for the first nine months of 2025. The provision for the nine months ended September 30, 2026 included the impact on the ACL of an elevated level of net charge-offs, primarily related to one non-owner occupied, commercial real estate loan offset by net reductions in the ACL related to changes in qualitative factors and a reduction in loans receivable. ● Net interest income for the third quarter 2026 increased $587,000 over the total for the second quarter 2026 and $7,942,000 over the total for third quarter 2025. For the first nine months of 2026, net interest income was $24,897,000 higher than in the corresponding period of 2025. The net interest margin increased 0.06% to 4.13% for the third quarter 2026 from 4.07% for the second quarter 2026 and increased 0.51% from 3.62% for the third quarter 2025. The net interest margin increased 0.55% to 4.06% for the first nine months of 2026 from 3.51% for the corresponding period of 2025. Accretion of purchase accounting valuation adjustments related to the Susquehanna merger had a net positive impact on net interest income of $1,630,000 in the nine months ended September 30, 2026. ● Total loans receivable was $17,452,000 lower at September 30, 2026 compared to June 30, 2026, mainly due to higher pay-downs and pay-offs of several larger commercial-purpose loans in the third quarter 2026. Average loans receivable decreased $43,494,000, or 7.3% (annualized), for the third quarter 2026 as compared to the total for the second quarter 2026. Average loans receivable increased $452,728,000, or 23.7%, for the nine months ended September 30, 2026 as compared to the first nine months of 2025, including the impact of loans recorded pursuant to the Susquehanna acquisition, ● At September 30, 2026, C&N’s highly liquid sources of available funds totaled $1.384 billion, or 170.3% of uninsured deposits and 219.0% of uninsured and uncollateralized deposits. Balance Sheet ◾ Total assets were $3,150,204,000 at September 30, 2026 down from $3,151,984,000 at June 30, 2026 and up from $2,664,033,000 at September 30, 2025. ◾ Cash and due from banks totaled $99,992,000 at September 30, 2026, up from $82,537,000 at June 30, 2026 and down from $123,090,000 at September 30, 2025. ◾ The fair value of available-for-sale debt securities totaled $490,474,000 at September 30, 2026, down from $496,829,000 at June 30, 2026 and up from $415,313,000 at September 30, 2025. The increase in available-for-sale debt securities from September 30, 2025 included the impact of purchases of available- for-sale debt securities from funding provided by proceeds from the sale of most of the securities acquired from Susquehanna. ◾ Gross loans receivable totaled $2,331,395,000 at September 30, 2026, down $17,452,000 from total loans at June 30, 2026 and up $386,288,000 from total loans at September 30, 2025. On October 1, 2025, $393,587,000 of loans receivable were recorded pursuant to the acquisition of Susquehanna. The reduction in loans receivable at September 30, 2026 as compared to June 30, 2026 included a reduction in total non- owner occupied commercial real estate loans of $16,288,000 and a reduction in commercial construction and land loans of $13,917,000, resulting mainly from payoffs and paydowns received on several larger loans. ◾ Deposits totaled $2,608,512,000 at September 30, 2026, up $4,777,000 from June 30, 2026 and $442,777,000 from September 30, 2025. Deposits of $501,488,000 were assumed from Susquehanna, effective October 1, 2025. Average total deposits increased $8,289,000, or 1.3% (annualized) during the third quarter 2026 from the second quarter 2026 and were $481,963,000 or 23.0% higher for the nine months ended September 30, 2026 as compared to the first nine months of 2025. ◾ The outstanding balance of borrowed funds, including Federal Home Loan Bank advances, repurchase agreements, senior notes and subordinated debt, totaled $163,458,000 at September 30, 2026, down $6,577,000 from June 30, 2026 and $10,796,000 from September 30, 2025. On June 1, 2026, senior notes totaling $15,000,000 matured and were redeemed. Also on June 1, 2026, the interest rate on subordinated notes totaling $25,000,000 adjusted from a fixed rate of 3.25% to a variable rate that will reset quarterly based on the Term Secured Overnight Financing Rate plus 259 basis points. At September 30, 2026, the interest rate on the outstanding subordinated notes was 6.42%. C&N is entitled to redeem the subordinated notes, in whole or in part, at any time, subject to regulatory approval to the extent required. ◾ Total stockholders’ equity was $343,320,000 at September 30, 2026, down from $346,139,000 at June 30, 2026 and up from $293,959,000 at September 30, 2025.
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3 ◾ Within stockholders’ equity, the portion of accumulated other comprehensive loss related to available-for- sale debt securities was $39,072,000 at September 30, 2026, $24,284,000 at June 30, 2026 and $26,352,000 at September 30, 2025. The volatility in the fair value of the portfolio has resulted from changes in interest rates including significant increases in interest rates as of September 30, 2026 as compared to June 30, 2026. Management reviewed the available-for-sale debt securities as of September 30, 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 September 30, 2026. Accumulated other comprehensive losses are excluded from C&N’s regulatory capital ratios. Asset Quality ◾ Total nonperforming assets as a percentage of total assets was 1.16% at September 30, 2026, down from 1.28% at June 30, 2026 and up from 1.06% at December 31, 2025 and 1.02% at September 30, 2025. Total nonperforming assets were $36,523,000 at September 30, 2026, down from $40,275,000 at June 30, 2026 and up from $33,113,000 at December 31, 2025 and $27,189,000 at September 30, 2025. The decrease in nonperforming assets in the third quarter 2026 included the impact of moving a non-owner occupied commercial real estate loan with an amortized cost basis of $3,276,000 at September 30, 2026 and June 30, 2026 from nonaccrual to accrual status. Included in nonaccrual loans were loans purchased with credit deterioration (“PCD loans”) that were acquired as part of the Susquehanna merger on October 1, 2025 with a total amortized cost basis of $7,879,000 at September 30, 2026, $8,371,000 at June 30, 2026 and $6,762,000 at December 31, 2025. ◾ In the third quarter 2026, C&N recorded net charge-offs totaling $403,000 or 0.07% (annualized) of average loans receivable compared to net recoveries totaling $403,000 or 0.07% (annualized) of average loans receivable in the second quarter 2026 and net charge-offs of $94,000 or 0.02% (annualized) of average loans receivable in the third quarter 2025. During the second quarter of 2026, C&N recorded a $675,000 recovery on a loan classified as nonaccrual that was paid off by the borrower through third-party financing. ◾ For the nine months ended September 30, 2026, net charge-offs totaled $10,808,000, or 0.61% (annualized) of average loans receivable as compared to net charge-offs of $733,000, or 0.05% (annualized) of average loans receivable for the first nine months of 2025. The significant increase in charge-offs in the nine months ended September 30, 2026 was 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 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 at September 30, June 30 and 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 which was recorded in the first quarter 2026. In the third quarter 2026, C&N recorded an additional charge-off of $352,000 related to this loan. The additional charge-off resulted from advances made to cover borrower expenses in order to protect C&N’s interest in the collateral. At September 30, 2026, the amortized cost basis of the loan, net of the partial charge-offs, was $5,836,000. ◾ The ACL was 1.24% of gross loans receivable at September 30, 2026, down from 1.39% of gross loans receivable at June 30, 2026 and 1.32% at December 31, 2025 and up from 1.21% at September 30, 2025. The reduction in the ACL as a percentage of loans receivable at September 30, 2026 as compared to June 30, 2026 reflected the impact of a reduction in qualitative factors based on external data used to assess trends in regional economic conditions and commercial real estate values. Capital ◾ 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 first nine months of 2026. At September 30, 2026, there were 723,465 shares available to be repurchased under the program. ◾ Tangible common book value per share, a non-GAAP financial measure, decreased to $15.20 per share at September 30, 2026 from $15.33 per share at June 30, 2026 and $15.46 at September 30, 2025. C&N’s tangible common equity ratio, a non-GAAP financial measure, was 8.86% at September 30, 2026 compared to 8.93% at June 30, 2026 and 9.20% at September 30, 2025. The reductions in tangible common book value per share and the tangible common equity ratio at September 30, 2026 resulted from the increase in accumulated other comprehensive loss related to available-for-sale debt
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4 securities, as described in the Balance Sheet section of this press release. See Tables 15 and 16 for more information, including reconciliations. ◾ C&N and the Bank are subject to various regulatory capital requirements. At September 30, 2026, C&N and C&N Bank maintained regulatory capital ratios that exceeded all capital adequacy requirements and were classified as well-capitalized. Liquidity ◾ C&N maintained highly liquid sources of available funds totaling $1.384 billion at September 30, 2026, including unused borrowing capacity with the Federal Home Loan Bank of Pittsburgh of $985.9 million, unused availability on the Federal Reserve Bank of Philadelphia’s discount window of $23.5 million, available federal funds lines with other banks of $75 million and unencumbered available-for-sale debt securities with a fair value of $299.9 million. At September 30, 2026, available funding from these sources totaled 170.3% of uninsured deposits and 219.0% of uninsured and uncollateralized deposits. ◾ At September 30, 2026, C&N’s estimated uninsured deposits totaled $812.8 million, or 31.1% of the Bank’s total deposits, as compared to $820.2 million, or 31.4% of the Bank’s total deposits at June 30, 2026 and $696.5 million, or 31.9% of the Bank’s total deposits at September 30, 2025. Included in uninsured deposits are deposits collateralized by securities (almost exclusively municipal deposits) totaling $180.7 million, or 6.9% of the Bank’s total deposits, at September 30, 2026 as compared to $167.8 million, or 6.4% of the Bank’s total deposits, at June 30, 2026 and $178.5 million, or 8.2% of the Bank’s total deposits at September 30, 2025. Income Statement- Third Quarter 2026 as Compared to Second Quarter 2026 Net Interest Income ◾ Net interest income of $30,205,000 in the third quarter 2026 increased $587,000 from the second quarter 2026 result. The net interest margin was 4.13% in the third quarter 2026, up 0.06% from 4.07% in the second quarter 2026. The net interest spread increased 0.04%, as the average yield on earning assets increased 0.06% and the average rate on interest-bearing liabilities increased 0.02%. Average total earning assets decreased $14,722,000 from the prior quarter, as average total loans receivable decreased $43,494,000 while average interest-bearing due from banks increased $23,716,000. Average total deposits increased $8,289,000 in the third quarter 2026 as compared to the total for the prior quarter. ◾ Accretion of purchase accounting valuation adjustments related to the Susquehanna merger had a net positive impact on net interest income of $552,000 in the third quarter 2026 and $416,000 in the second quarter 2026. (Credit) Provision for Credit Losses ◾ C&N recorded a credit for credit losses (reduction in expense) of $3,171,000 in the third quarter 2026 and $1,846,000 in the second quarter 2026. The credit for credit losses in the third quarter 2026 included the impact of a reduction in the ACL resulting from changes in qualitative factors based on external data used to assess trends in regional economic conditions and commercial real estate values and a reduction in loans receivable. The credit for credit losses in the second quarter 2026 included the impact of a reduction in the ACL resulting from changes in qualitative factors, net recoveries of $403,000 and a reduction in loans receivable. Noninterest Income ◾ Noninterest income of $9,352,000 in the third quarter 2026 decreased $448,000 from the total for the second quarter 2026. Significant variances included the following: Ø Other noninterest income of $1,793,000 decreased $512,000 from the second quarter 2026 as there was income of $840,000 recognized in the second quarter 2026 from tax credits related to donations with no corresponding income in the third quarter 2026. Included in the third quarter of 2026 was an annual incentive payment related to volume of checks sold of $226,000 with no corresponding income in the second quarter of 2026. Ø Net gains from sales of loans of $728,000 increased $120,000 reflecting an increase in the volume of residential mortgage loans sold.
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5 Noninterest Expense ◾ Noninterest expense of $22,326,000 in the third quarter of 2026 decreased $1,513,000 from the second quarter 2026 total. Significant variances included the following: Ø Other noninterest expense of $3,662,000 decreased $1,137,000 from the second quarter 2026. Within this category, donations decreased $948,000 as donations totaling $933,000 made under the Pennsylvania Educational Improvement Tax Credit program were included in the second quarter which generated income from tax credits of $840,000 with no comparable amounts in the third quarter 2026 as discussed above. Ø Salaries and employee benefits expense of $12,817,000 decreased $380,000 from the second quarter 2026 including a decrease of $273,000 in cash and stock-based compensation, a decrease of $103,000 or 1.1% in base salaries expense and a decrease in contributions to the Savings and Retirement and Employee Stock Ownership Plans of $105,000, while health insurance expense increased $137,000. Income Tax Provision ◾ The income tax provision of $4,117,000, or 20.2% of pre-tax income for the third quarter 2026 increased $749,000 from $3,368,000, or 19.3% of pre-tax income for the second quarter 2026 reflecting an increase in pre-tax income for the quarter. Other Information: ◾ Assets under management and advisement by C&N’s Wealth Management Group totaled $2,335,128,000 at September 30, 2026, up from $2,329,362,000 at June 30, 2026, and up 13.9% from $2,050,023,000 at September 30, 2025. Fluctuations in values of assets under administration and advisement reflect the impact of market volatility. ◾ The outstanding balance of residential mortgage loans originated and serviced by C&N that have been sold to third parties was $460,639,000 at September 30, 2026, up $5,997,000 from June 30, 2026 and up $125,309,000 from the total at September 30, 2025, reflecting the impact of servicing obligations assumed on such loans that had been sold by Susquehanna prior to the merger. Citizens & Northern Corporation is the bank holding company for Citizens & Northern Bank, headquartered in Wellsboro, Pennsylvania, which operates 34 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 wealth management office in Doylestown, Pennsylvania and 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 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 future financial 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; military conflicts including the conflict in the Middle East and the possible expansion of such conflict and the potential geopolitical and economic consequences; 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; difficulties in integrating the former Susquehanna (acquired October 1, 2025); 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 breaches 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’s existing businesses, may take longer than anticipated and may be more costly than anticipated; 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.
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Supplemental, Unaudited Financial Information TABLE 1 - Consolidated Income Statement Data (Dollars In Thousands, Except Per Share Data) (Unaudited) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 INTEREST INCOME Interest and fees on loans: Taxable $ 36,921$ 36,583$ 29,085$ 109,145$ 84,639 Tax-exempt 633 629 590 1,881 1,784 Income from available-for-sale debt securities: Taxable 3,651 3,507 2,390 10,676 7,021 Tax-exempt 556 562 568 1,680 1,720 Other interest and dividend income 515 285 1,017 1,048 2,649 Total interest and dividend income 42,276 41,566 33,650 124,430 97,813 INTEREST EXPENSE Interest on deposits 10,165 9,820 9,456 30,043 28,332 Interest on short-term borrowings 123 337 0 736 1 Interest on long-term borrowings - FHLB advances 1,381 1,423 1,577 4,250 5,040 Interest on senior notes, net 0 81 121 202 362 Interest on subordinated debt, net 402 287 233 922 698 Total interest expense 12,071 11,948 11,387 36,153 34,433 Net interest income 30,205 29,618 22,263 88,277 63,380 (Credit) provision for credit losses (3,171) (1,846) 2,163 8,585 4,753 Net interest income after (credit) provision for credit losses 33,376 31,464 20,100 79,692 58,627 NONINTEREST INCOME Trust revenue 2,188 2,242 2,056 6,515 6,125 Brokerage and insurance revenue 755 816 490 2,159 1,542 Service charges on deposit accounts 1,785 1,761 1,471 5,196 4,333 Interchange revenue from debit card transactions 1,348 1,347 1,137 3,962 3,391 Net gains from sale of loans 728 608 408 1,706 925 Loan servicing fees, net 216 193 107 517 418 Increase in cash surrender value of life insurance 537 527 477 1,579 1,400 Other noninterest income 1,793 2,305 1,158 5,684 4,320 Realized gains on available-for-sale debt securities, net 2 1 0 29 0 Total noninterest income 9,352 9,800 7,304 27,347 22,454 NONINTEREST EXPENSE Salaries and employee benefits 12,817 13,197 11,293 39,215 34,119 Net occupancy and equipment expense 1,710 1,728 1,336 5,329 4,198 Data processing and telecommunication expense 2,333 2,249 1,939 7,031 5,991 Automated teller machine and interchange expense 638 535 529 1,756 1,319 Pennsylvania shares tax 586 587 469 1,758 1,435 Professional fees 580 744 445 1,963 1,468 Merger-related expenses 0 0 882 0 1,049 Other noninterest expense 3,662 4,799 2,496 11,825 8,251 Total noninterest expense 22,326 23,839 19,389 68,877 57,830 Income before income tax provision 20,402 17,425 8,015 38,162 23,251 Income tax provision 4,117 3,368 1,464 7,547 4,290 NET INCOME $ 16,285$ 14,057$ 6,551$ 30,615$ 18,961 EARNINGS PER COMMON SHARE - BASIC and DILUTED $ 0.92$ 0.79$ 0.42$ 1.72$ 1.22
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7 TABLE 2 - CONSOLIDATED BALANCE SHEET DATA (Dollars In Thousands) (Unaudited) September 30, June 30, December 31, September 30, 2026 2026 2025 2025 ASSETS Cash and due from banks: Noninterest-bearing $ 24,606$ 25,947$ 22,289$ 27,430 Interest-bearing 75,386 56,590 23,767 95,660 Total cash and due from banks 99,992 82,537 46,056 123,090 Available-for-sale securities, at fair value 490,474 496,829 506,575 415,313 Loans receivable 2,331,395 2,348,847 2,354,365 1,945,107 Allowance for credit losses (28,952) (32,583) (31,048) (23,474) Loans, net 2,302,443 2,316,264 2,323,317 1,921,633 Bank-owned life insurance 62,673 62,136 61,094 52,614 Accrued interest receivable 11,629 10,941 11,594 9,656 Bank premises and equipment, net 27,113 26,712 27,755 21,055 Foreclosed assets held for sale 336 181 189 402 Deferred tax asset, net 22,186 18,617 17,615 16,759 Goodwill 63,311 63,311 63,311 52,505 Core deposit intangibles, net 9,129 9,944 11,573 1,762 Other assets 60,918 64,512 63,390 49,244 TOTAL ASSETS $ 3,150,204$ 3,151,984$ 3,132,469$ 2,664,033 LIABILITIES Deposits: Noninterest-bearing $ 537,857$ 557,892$ 531,442$ 508,475 Interest-bearing 2,070,655 2,045,843 2,033,274 1,657,260 Total deposits 2,608,512 2,603,735 2,564,716 2,165,735 Short-term borrowings 4,796 14,643 28,618 1,489 Long-term borrowings - FHLB advances 133,662 130,392 120,935 132,894 Senior notes, net 0 0 14,970 14,952 Subordinated debt, net 25,000 25,000 24,949 24,919 Accrued interest and other liabilities 34,914 32,075 36,567 30,085 TOTAL LIABILITIES 2,806,884 2,805,845 2,790,755 2,370,074 STOCKHOLDERS' EQUITY Common stock 18,303 18,303 18,303 16,030 Paid-in capital 184,862 184,340 185,696 143,352 Retained earnings 186,791 175,519 171,214 171,733 Treasury stock, at cost (7,873) (8,062) (10,704) (11,130) Accumulated other comprehensive loss (38,763) (23,961) (22,795) (26,026) TOTAL STOCKHOLDERS' EQUITY 343,320 346,139 341,714 293,959 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 3,150,204$ 3,151,984$ 3,132,469$ 2,664,033
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TABLE 3 - CONDENSED, CONSOLIDATED KEY FINANCIAL RATIOS AND DATA HIGHLIGHTS (Dollars In Thousands, Except Share and Per Share Data) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 PERFORMANCE MEASURES: Net Income per Common Share - Basic and Diluted $ 0.92 $ 0.79 $ 0.42 $ 1.72 $ 1.22 Net Income - Basic and Diluted- Adjusted for Merger Related Expenses (a) $ 0.92 $ 0.79 $ 0.47 $ 1.72 $ 1.28 Weighted average basic and diluted shares 17,793,424 17,771,901 15,398,262 17,766,178 15,371,733 Dividends Per Share $ 0.28 $ 0.28 $ 0.28 $ 0.84 $ 0.84 Pre-tax, pre-provision net revenue ("PPNR") (a) $ 17,464 $ 15,815 $ 11,278 $ 47,421 $ 29,702 Return on Average Assets (Annualized) 2.08% 1.78% 1.00% 1.30 % 0.97% Return on Average Equity (Annualized) 18.77% 16.57% 9.10% 11.86 % 8.94% Return on Average Assets (Annualized)- Adjusted for merger- related expenses (a) 2.08% 1.78% 1.10% 1.30 % 1.02% Return on Average Equity (Annualized)- Adjusted for merger- related expenses (a) 18.77% 16.57% 10.07% 11.86 % 9.34% PPNR (Annualized) as a % of Average Assets (a) 2.23% 2.00% 1.72% 2.01 % 1.52 % PPNR (Annualized) as a % of Average Equity (a) 20.13% 18.65% 15.67% 18.37 % 14.00 % Return on Average Tangible Common Equity (a) 23.59% 20.99% 11.20% 14.97 % 11.04 % Return on Average Tangible Common Equity- Adjusted for merger-related expenses (a) 23.59% 20.99% 12.39% 14.97 % 11.54 % Efficiency ratio (a) 56.11 % 60.12 % 62.14 % 59.22 % 65.66 % AS OF: September 30, June 30, December 31, September 30, 2026 2026 2025 2025 BALANCE SHEET HIGHLIGHTS Total Assets $ 3,150,204 $ 3,151,984 $ 3,132,469 $ 2,664,033 Available-for-Sale Securities $ 490,474 $ 496,829 $ 506,575 $ 415,313 Loans, Net $ 2,302,443 $ 2,316,264 $ 2,323,317 $ 1,921,633 Allowance for Credit Losses: Allowance for Credit Losses on Loans $ 28,952 $ 32,583 $ 31,048 $ 23,474 Allowance for Credit Losses on Off-Balance Sheet Exposures $ 902 $ 845 $ 1,029 $ 1,036 Deposits $ 2,608,512 $ 2,603,735 $ 2,564,716 $ 2,165,735 Total Stockholders' Equity $ 343,320 $ 346,139 $ 341,714 $ 293,959 Common shares outstanding, end of period 17,950,560 17,942,105 17,823,444 15,531,700 Common book value $ 19.13 $ 19.29 $ 19.17 $ 18.93 Tangible Common Book Value (a) $ 15.20 $ 15.33 $ 15.11 $ 15.46 OFF-BALANCE SHEET Outstanding Balance of Mortgage Loans Sold with Servicing Retained $ 460,639 $ 454,642 $ 450,120 $ 335,330 WEALTH MANAGEMENT INFORMATION Trust Assets Under Administration $ 1,547,227 $ 1,554,305 $ 1,468,691 $ 1,436,257 Brokerage Assets Under Advisement $ 787,901 $ 775,057 $ 619,200 $ 613,766 Total Assets Under Administration and Advisement $ 2,335,128 $ 2,329,362 $ 2,087,891 $ 2,050,023 (a) See “NON-GAAP Reconciliations.”
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9 TABLE 3 - CONDENSED, CONSOLIDATED KEY FINANCIAL RATIOS AND DATA HIGHLIGHTS (Continued) AS OF: September 30, June 30, December 31, September 30, 2026 2026 2025 2025 SAFETY AND SOUNDNESS Total Risk Based Capital Ratio (b) 15.01 % 14.52 % 14.45 % 16.01 % Tier 1 Risk Based Capital Ratio (b) 13.02 % 12.44 % 12.18 % 13.50 % Common Equity Tier 1 Risk Based Capital Ratio (b) 13.02 % 12.44 % 12.18 % 13.50 % Leverage Ratio (b) 10.07 % 9.62 % 9.32% 10.21 % Tangible Common Equity / Tangible Assets (a) 8.86 % 8.93 % 8.80% 9.20 % ASSET QUALITY RATIOS: Non-performing loans as a % of total loans 1.55% 1.71% 1.40% 1.38% Non-performing assets as a % of assets 1.16% 1.28% 1.06% 1.02% Allowance for credit losses as a % of total loans 1.24% 1.39% 1.32% 1.21% Net (charge-offs) recoveries as a % of average gross loans (annualized): Three Months Ended (0.07)% 0.07 % (0.15)% (0.02)% Year-to-Date (0.61)% (0.88)% (0.08)% (0.05)% (a) See NON-GAAP to GAAP Reconciliations. (b) Consolidated capital ratios for the most recent period are estimated.
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10 TABLE 4 - ANALYSIS OF AVERAGE DAILY BALANCES AND RATES (Dollars In Thousands) 3 Months (3) 3 Months (3) 3 Months (3) Ended Rate of Ended Rate of Ended Rate of 9/30/2026 Return/ 6/30/2026 Return/ 9/30/2025 Return/ Average Income/ Cost of Average Income/ Cost of Average Income/ Cost of Balance Expense Funds% Balance Expense Funds% Balance ExpenseFunds% EARNING ASSETS Interest-bearing due from banks $ 50,322 $ 468 3.69% $ 26,606 $ 232 3.50% $ 88,657$ 982 4.39%Available-for-sale debtsecurities, at amortized cost: Taxable 429,859 3,651 3.37% 424,311 3,507 3.32% 337,101 2,390 2.81% Tax-exempt (1) 101,954 640 2.49% 103,807 649 2.51% 107,978 649 2.38%Total available-for-saledebt securities 531,813 4,291 3.20% 528,118 4,156 3.16% 445,079 3,039 2.71% Loans receivable: Taxable 2,252,124 36,921 6.50% 2,293,653 36,583 6.40% 1,841,875 29,085 6.26% Tax-exempt (1) 86,572 784 3.59% 88,537 779 3.53% 84,356 727 3.42% Total loans receivable (2) 2,338,696 37,705 6.40% 2,382,190 37,362 6.29% 1,926,231 29,812 6.14% Other earning assets 5,491 47 3.40% 4,130 53 5.15% 2,809 35 4.94% Total Earning Assets 2,926,322 42,511 5.76% 2,941,044 41,803 5.70% 2,462,776 33,868 5.46% Bank-owned life insurance 62,323 61,796 52,321 Intangible assets 72,895 73,711 54,320 Other assets 74,344 78,605 55,730 Total Assets $ 3,135,884 $ 3,155,156 $ 2,625,147 INTEREST-BEARINGLIABILITIES Interest-bearing deposits: Interest checking $ 713,363 2,773 1.54% $ 697,007 $ 2,513 1.45% $ 545,004$ 2,770 2.02% Money market 415,241 2,029 1.94% 399,142 1,914 1.92% 376,761 2,034 2.14% Savings 332,311 678 0.81% 347,745 739 0.85% 194,592 50 0.10% Time deposits 574,623 4,685 3.23% 579,748 4,654 3.22% 499,049 4,602 3.66% Total interest-bearingdeposits 2,035,538 10,165 1.98% 2,023,642 9,820 1.95% 1,615,406 9,456 2.32% Borrowed funds: Short-term 13,486 123 3.62% 34,880 337 3.88% 658 0 0.00% Long-term - FHLB advances 128,187 1,381 4.27% 133,004 1,423 4.29% 138,749 1,577 4.51% Senior notes, net 0 0 0.00% 10,050 81 3.23% 14,944 121 3.21% Subordinated debt, net 25,000 402 6.38% 24,993 287 4.61% 24,905 233 3.71% Total borrowed funds 166,673 1,906 4.54% 202,927 2,128 4.21% 179,256 1,931 4.27% Total Interest-bearingLiabilities 2,202,211 12,071 2.17% 2,226,569 11,948 2.15% 1,794,662 11,387 2.52%Demand deposits (non-interestbearing) 550,221 553,828 510,802 Other liabilities 36,475 35,510 31,823 Total Liabilities 2,788,907 2,815,907 2,337,287 Stockholders' equity, excludingaccumulated othercomprehensive loss 374,067 363,636 318,175 Accumulated othercomprehensive loss (27,090) (24,387) (30,315) Total Stockholders' Equity 346,977 339,249 287,860 Total Liabilities andStockholders' Equity $ 3,135,884 $ 3,155,156 $ 2,625,147 Interest Rate Spread 3.59% 3.55% 2.94% Net Interest Income $ 30,440 $ 29,855 $ 22,481 Net Interest Income/EarningAssets (Net Interest Margin) 4.13% 4.07% 3.62%Total Deposits (Interest-bearingand Demand) $ 2,585,759 $ 2,577,470 $ 2,126,208 Brokered Deposits $ 0 0 0.00% $ 132 1 3.04% $ 4,936 52 4.18% (1) Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using C&N’s marginal federal income tax rate of 21%. See Non-GAAP reconciliation below. (2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings. (3) Rates of return on earning assets and costs of funds have been presented on an annualized basis.
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TABLE 5 - ANALYSIS OF AVERAGE DAILY BALANCES AND RATES (Dollars In Thousands) 9 Months (3) 9 Months (3) Ended Rate of Ended Rate of 9/30/2026 Return/ 9/30/2025 Return/ Average Income/ Cost of Average Income/ Cost of Balance Expense Funds% Balance Expense Funds% EARNING ASSETS Interest-bearing due from banks $ 34,239 $ 918 3.58% $ 78,883 $ 2,558 4.34% Available-for-sale debt securities, at amortized cost: Taxable 427,242 10,676 3.34% 338,390 7,021 2.77% Tax-exempt (1) 103,481 1,936 3.50% 109,642 1,955 2.38% Total available-for-sale debt securities 530,723 12,612 3.18% 448,032 8,976 2.68% Loans receivable: Taxable 2,272,227 109,145 6.42% 1,821,817 84,639 6.21% Tax-exempt (1) 89,627 2,328 3.47% 87,309 2,198 3.37% Total loans receivable (2) 2,361,854 111,473 6.31% 1,909,126 86,837 6.08% Other earning assets 4,181 130 4.16% 2,477 91 4.91% Total Earning Assets 2,930,997 125,133 5.71% 2,438,518 98,462 5.40% Bank-owned life insurance 61,802 51,853 Intangible assets 73,706 54,424 Other assets 79,365 52,873 Total Assets $ 3,145,870 $ 2,597,668 INTEREST-BEARING LIABILITIES Interest-bearing deposits: Interest checking $ 693,606$ 7,614 1.47% $ 542,281$ 8,205 2.02% Money market 400,098 5,793 1.94% 365,460 5,963 2.18% Savings 347,263 2,265 0.87% 196,367 148 0.10% Time deposits 585,503 14,371 3.28% 493,190 14,016 3.80% Total interest-bearing deposits 2,026,470 30,043 1.98% 1,597,298 28,332 2.37% Borrowed funds: Short-term 25,469 736 3.87% 1,010 1 0.13% Long-term - FHLB advances 131,720 4,250 4.31% 150,195 5,040 4.49% Senior notes, net 8,288 202 3.26% 14,926 362 3.24% Subordinated debt, net 24,986 922 4.93% 24,875 698 3.75% Total borrowed funds 190,463 6,110 4.29% 191,006 6,101 4.27% Total Interest-bearing Liabilities 2,216,933 36,153 2.18% 1,788,304 34,433 2.57% Demand deposits (non-interest bearing) 548,108 495,317 Other liabilities 36,705 31,119 Total Liabilities 2,801,746 2,314,740 Stockholders' equity, excluding accumulated other comprehensive loss 368,210 315,395 Accumulated other comprehensive loss (24,086) (32,467) Total Stockholders' Equity 344,124 282,928 Total Liabilities and Stockholders' Equity $ 3,145,870 $ 2,597,668 Interest Rate Spread 3.53% 2.83% Net Interest Income $ 88,980 $ 64,029 Net Interest Income/Earning Assets (Net Interest Margin) 4.06% 3.51% Total Deposits (Interest-bearing and Demand)$ 2,574,578 $ 2,092,615 Brokered Deposits $ 785 22 3.75% $ 13,287 460 4.63% (1) Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using C&N’s marginal federal income tax rate of 21%. See Non-GAAP reconciliation below. (2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings. (3) Rates of return on earning assets and costs of funds have been presented on an annualized basis.
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12 TABLE 6 - SUMMARY OF LOANS BY TYPE (Excludes Loans Held for Sale) (Dollars In Thousands) September 30, June 30, December 31, September 30, September 30, 2026 vs2026 2026 2025 2025 June 30, 2026 Commercial real estate - non-owner occupied: Non-owner occupied $ 542,651 $ 550,607 $ 569,974 $ 497,295 $ (7,956) (1.4)% Multi-family (5 or more) residential 170,637 170,179 160,284 108,376 458 0.3 % 1-4 Family - commercial purpose 194,303 203,093 197,480 159,695 (8,790) (4.3)% Total commercial real estate - non-owner occupied 907,591 923,879 927,738 765,366 (16,288) (1.8)% Commercial real estate - owner occupied 330,255 325,002 311,792 260,365 5,253 1.6 % All other commercial loans: Commercial and industrial 123,289 127,268 128,679 112,667 (3,979) (3.1)% Commercial lines of credit 156,768 149,546 139,727 133,726 7,222 4.8 % Political subdivisions 88,244 86,701 96,349 82,728 1,543 1.8 % Commercial construction and land 97,545 111,462 123,887 100,015 (13,917) (12.5)% Other commercial loans 67,553 69,098 71,895 20,039 (1,545) (2.2)% Total all other commercial loans 533,399 544,075 560,537 449,175 (10,676) (2.0)% Residential mortgage loans: 1-4 Family - residential 404,186 405,339 411,827 369,452 (1,153) (0.3)% 1-4 Family residential construction 38,702 37,737 32,123 27,358 965 2.6 % Total residential mortgage 442,888 443,076 443,950 396,810 (188) (0.0)% Consumer loans: Consumer lines of credit (including HELCs) 102,584 98,962 94,060 58,888 3,622 3.7 % All other consumer 14,678 13,853 16,288 14,503 825 6.0 % Total consumer 117,262 112,815 110,348 73,391 4,447 3.9 % Total 2,331,395 2,348,847 2,354,365 1,945,107 (17,452) (0.7)% Less: allowance for credit losses on loans (28,952) (32,583) (31,048) (23,474) 3,631 (11.1)% Loans, net $ 2,302,443 $ 2,316,264 $ 2,323,317 $ 1,921,633 $ (13,821) (0.6)% TABLE 7 - NON-OWNER OCCUPIED COMMERCIAL REAL ESTATE (Dollars In Thousands) Loan Type September 30, % of June 30, December 31, September 30, 2026 Total Loans 2026 2025 2025 Office $ 107,245 4.6 % $ 107,923 $ 125,175 $ 117,046 Retail 104,817 4.5 % 112,665 104,513 88,328 Industrial 93,665 4.0 % 96,526 99,476 89,953 Hotels 75,576 3.2 % 76,171 82,692 72,776 Mixed Use 65,438 2.8 % 58,871 64,390 62,872 Self Storage Facilities 52,555 2.3 % 59,772 55,434 34,620 Other 43,355 1.9 % 38,679 38,294 31,700 Total Non-owner Occupied CRE Loans $ 542,651 23.3 % $ 550,607 $ 569,974 $ 497,295 Total Gross Loans $ 2,331,395 $ 2,348,847 $ 2,354,365 $ 1,945,107
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13 TABLE 8 - PAST DUE LOANS AND NONPERFORMING ASSETS (Dollars In Thousands) September 30, June 30, December 31, September 30, 2026 2026 2025 2025 Collateral dependent loans with a valuation allowance $ 5,283 $ 5,608 $ 5,401 $ 263 Collateral dependent loans without a valuation allowance 29,042 33,255 27,027 21,174 Total collateral dependent loans $ 34,325 $ 38,863 $ 32,428 $ 21,437 Total loans past due 30-89 days and still accruing $ 9,861 $ 7,047 $ 18,309 $ 2,509 Nonperforming assets: Total nonaccrual loans $ 35,275 $ 39,748 $ 32,836 $ 25,762 Total loans past due 90 days or more and still accruing 912 346 88 1,025 Total nonperforming loans 36,187 40,094 32,924 26,787 Foreclosed assets held for sale (real estate) 336 181 189 402 Total nonperforming assets $ 36,523 $ 40,275 $ 33,113 $ 27,189 Total nonperforming loans as a % of total loans 1.55% 1.71% 1.40% 1.38% Total nonperforming assets as a % of assets 1.16% 1.28% 1.06% 1.02% Allowance for credit losses as a % of total loans 1.24% 1.39% 1.32% 1.21% Included in the table above were loans acquired from Susquehanna with credit deterioration (“PCD loans”) totaled as follows: (Dollars In Thousands) September 30, June 30, December 31, September 30, 2026 2026 2025 2025 PCD Loans PCD Loans PCD Loans PCD Loans Collateral dependent loans with a valuation allowance $ 4,651 $ 4,975 $ 5,138 $ 0 Collateral dependent loans without a valuation allowance 7,270 7,428 5,553 0 Total collateral dependent loans $ 11,921 $ 12,403 $ 10,691 $ 0 Total loans past due 30-89 days and still accruing $ 2,928 $ 2,150 $ 5,810 $ 0 Nonperforming assets: Total nonaccrual loans $ 7,879 $ 8,371 $ 6,762 $ 0 Total loans past due 90 days or more and still accruing $ 458 $ 0 $ 0 $ 0 TABLE 9 - ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LOANS (Dollars In Thousands) 3 Months 3 Months 3 Months 9 Months 9 Months Ended Ended Ended Ended Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 Balance, beginning of period $ 32,583 $ 33,832 $ 21,699 $ 31,048 $ 20,035 Charge-offs (451) (300) (122) (11,584) (821) Recoveries 48 703 28 776 88 Net (charge-offs) recoveries (403) 403 (94) (10,808) (733) (Credit) Provision for credit losses on loans (3,228) (1,652) 1,869 8,712 4,172 Balance, end of period $ 28,952 $ 32,583 $ 23,474 $ 28,952 $ 23,474 Net (charge-offs) recoveries as a % of average gross loans (annualized) (0.07)% 0.07 % (0.02)% (0.61)% (0.05)% 3 Months 3 Months 3 Months 9 Months 9 Months Ended Ended Ended Ended Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 (Credit) provision for credit losses: Loans receivable $ (3,228)$ (1,652)$ 1,869 $ 8,712 $ 4,172 Off-balance sheet exposures 57 (194) 294 (127) 581 Total (credit) provision for credit losses $ (3,171)$ (1,846)$ 2,163 $ 8,585 $ 4,753
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14 TABLE 10 - DEPOSIT COMPOSITION (Dollars In Thousands) September 30, 2026 vs September 30, June 30, December 31, September 30, June 30, 20262026 2026 2025 2025 $ % Deposits, excluding brokered: Noninterest-bearing demand deposits$ 537,857$ 557,892$ 531,442$ 508,475$ (20,035) (3.6)% Interest checking 736,677 721,072 665,317 566,696 15,605 2.2% Money market 422,230 409,327 389,362 392,394 12,903 3.2% Savings 320,450 342,229 371,039 191,667 (21,779) (6.4)% Time deposits 591,298 573,215 603,706 501,499 18,083 3.2% Sub-total $ 2,608,512$ 2,603,735$ 2,560,866$ 2,160,731$ 4,777 0.2% Brokered deposits 0 0 3,850 5,004 0 0.0% Total Deposits and Brokered Deposits $ 2,608,512$ 2,603,735$ 2,564,716$ 2,165,735$ 4,777 0.2% TABLE 11 - CONTINGENT LIQUIDITY (Dollars In Thousands) September 30, June 30, December 31, September 30, 2026 2026 2025 2025 Highly Liquid Available Funding: Available Credit Facilities: Federal Home Loan Bank of Pittsburgh $ 985,860 $ 971,125 $ 785,822 $ 802,213 Federal Reserve Bank Discount Window 23,549 24,882 25,484 25,228 Other correspondent banks 75,000 75,000 75,000 75,000 Unencumbered available-for-sale debt securities 299,890 316,129 319,624 244,348 Total Highly Liquid Available Funding $ 1,384,299 $ 1,387,136 $ 1,205,930 $ 1,146,789 Uninsured Deposits Information September 30, June 30, December 31, September 30, 2026 2026 2025 2025 Total Deposits - C&N Bank $ 2,617,398 $ 2,610,552 $ 2,584,952 $ 2,184,401 Estimated Total Uninsured Deposits $ 812,808 $ 820,235 $ 811,209 $ 696,542 Portion of Uninsured Deposits that are Collateralized 180,727 167,823 172,585 178,525 Uninsured and Uncollateralized Deposits $ 632,081 $ 652,412 $ 638,624 $ 518,017 Uninsured and Uncollateralized Deposits as a % of Total Deposits 24.1% 25.0% 24.7% 23.7% Available Funding from Credit Facilities $ 1,084,409 $ 1,071,007 $ 886,306 $ 902,441 Fair Value of Available-for-sale Debt Securities in Excess of Pledging Obligations 299,890 316,129 319,624 244,348 Highly Liquid Available Funding $ 1,384,299 $ 1,387,136 $ 1,205,930 $ 1,146,789 Highly Liquid Available Funding as a % of Uninsured Deposits 170.3% 169.1% 148.7% 164.6% Highly Liquid Available Funding as a % of Uninsured and Uncollateralized Deposits 219.0% 212.6% 188.8% 221.4%
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15 NON-GAAP RECONCILIATIONS TABLE 12 – ADJUSTED RATIOS FOR MERGER-RELATED EXPENSES (Dollars In Thousands) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, Calculation of Adjusted Net Income: 2026 2026 2025 2026 2025 Net Income (GAAP) (A) $ 16,285 $ 14,057 $ 6,551 $ 30,615 $ 18,961Add: Merger-related expenses (B) 0 0 882 0 1,049 Less: Tax effect of merger-related expenses (C) 0 0 (185) 0 (199) Adjusted Net Income (Non-GAAP) (D=A+B-C) $ 16,285 $ 14,057 $ 7,248 $ 30,615 $ 19,811 Adjusted Net Income Attributable to Common Shares (Non-GAAP) $ 16,285 $ 14,057 $ 7,189 $ 30,615 $ 19,651 Number of Shares Used in Computation-Basic and Diluted (Non-GAAP) 17,793,424 17,771,901 15,398,262 17,766,178 15,371,733Net Income-Basic and Diluted per Common Share (GAAP) $ 0.92 $ 0.79 $ 0.42 $ 1.72 $ 1.22Adjusted Net Income-Basic and Diluted Per Common Share (Non-GAAP)$ 0.92 $ 0.79 $ 0.47 $ 1.72 $ 1.28 Adjusted Ratios for Merger-Related Expenses: Average Assets (E) 3,135,884 3,155,156 2,625,147 3,145,870 2,597,668Return on Average Assets (GAAP) (=A/E) (1) 2.08% 1.78% 1.00% 1.30% 0.97%Adjusted Return on Average Assets (Non-GAAP) (=D/E) (1) 2.08% 1.78% 1.10% 1.30% 1.02% Average Equity (F) 346,977 339,249 287,860 344,124 282,928 Return on Average Equity (GAAP) (=A/F) (1) 18.77% 16.57% 9.10% 11.86% 8.94%Adjusted Return on Average Equity (Non-GAAP) (=D/F) (1) 18.77% 16.57% 10.07% 11.86% 9.34% (1) Annualized TABLE 13 - PPNR NON-GAAP RECONCILIATION (Dollars In Thousands) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, Calculation of PPNR: 2026 2026 2025 2026 2025 Net Income (GAAP) $ 16,285 $ 14,057 $ 6,551 $ 30,615 $ 18,961 Add: Provision for income taxes 4,117 3,368 1,464 7,547 4,290 Add: (Credit) provision for credit losses (3,171) (1,846) 2,163 8,585 4,753 Less: Realized gains on available-for-sale debt securities (2) (1) 0 (29) 0 Add: Merger-related expenses 0 0 882 0 1,049 Add: Adjustments to reflect net interest income on a fully taxable-equivalent basis 235 237 218 703 649 PPNR (Non-GAAP) $ 17,464 $ 15,815 $ 11,278 $ 47,421 $ 29,702 Pre-tax, pre-provision net revenue (“PPNR”), a non-GAAP financial measure, includes net interest income on a fully taxable- equivalent basis plus noninterest income minus total noninterest expense but excludes (credit) provision 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 nonrecurring 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.
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16 NON-GAAP RECONCILIATIONS, Continued TABLE 14 - EFFICIENCY RATIO- NON-GAAP (Dollars In Thousands) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 EFFICIENCY RATIO - NON-GAAP Net Interest Income on a Fully Taxable-Equivalent Basis $ 30,440 $ 29,855 $ 22,481 $ 88,980 $ 64,029 Noninterest Income, Excluding Net Realized Gains onAvailable-for-sale Debt Securities 9,350 9,799 7,304 27,318 22,454 Total (1) $ 39,790 $ 39,654 $ 29,785 $ 116,298 $ 86,483 Noninterest Expense, Excluding Merger-Related Expenses (2)$ 22,326 $ 23,839 $ 18,507 $ 68,877 $ 56,781 Efficiency Ratio = (2)/(1) 56.11% 60.12% 62.14% 59.22% 65.66% The efficiency ratio, a non-GAAP measure, 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. In the calculation above, Management excluded merger-related expenses due to the nonrecurring nature of these expenses. 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. (Dollars In Thousands) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 Net Interest Income Under U.S. GAAP$ 30,205 $ 29,618 $ 22,263 88,277 $ 63,380 Add: fully taxable-equivalent interest income adjustment from tax-exempt securities 84 87 81 256 235 Add: fully taxable-equivalent interest income adjustment from tax-exempt loans 151 150 137 447 414 Net Interest Income as adjusted to a fully taxable-equivalent basis $ 30,440 $ 29,855 $ 22,481 $ 88,980 $ 64,029 TABLE 15 - TANGIBLE COMMON EQUITY AND TANGIBLE COMMON BOOK VALUE PER SHARE - NON-GAAP RECONCILIATION Tangible common book value per share and tangible common equity as a percentage of tangible assets are non-GAAP financial measures. Management believes this non-GAAP information is helpful in evaluating the strength of C&N's capital and in providing an alternative valuation of C&N's net worth. (Dollars In Thousands) September 30, June 30, December 31, September 30, 2026 2026 2025 2025 Total Assets $ 3,150,204 $ 3,151,984 $ 3,132,469 $ 2,664,033 Less: Intangible Asset, Goodwill (63,311) (63,311) (63,311) (52,505) Less: Intangible Asset, Core Deposit Intangibles, net (9,129) (9,944) (11,573) (1,762) Related Tax Effect on Core Deposit Intangibles, net 2,008 2,188 2,546 388 Tangible Assets (3) $ 3,079,772 $ 3,080,917 $ 3,060,131 $ 2,610,154 Total Stockholders' Equity $ 343,320 $ 346,139 $ 341,714 $ 293,959 Less: Goodwill (63,311) (63,311) (63,311) (52,505) Less: Intangible Asset, Core Deposit Intangibles, net (9,129) (9,944) (11,573) (1,762) Related Tax Effect on Core Deposit Intangibles, net 2,008 2,188 2,546 388 Tangible Common Equity (4) $ 272,888 $ 275,072 $ 269,376 $ 240,080 Common Shares Outstanding, End of Period (5) 17,950,560 17,942,105 17,823,444 15,531,700 Common Book Value per Share (GAAP) $ 19.13 $ 19.29 $ 19.17 $ 18.93 Tangible Common Book Value per Share = (4)/(5) $ 15.20 $ 15.33 $ 15.11 $ 15.46 Tangible Common Equity (4) / Tangible Assets (3) 8.86 % 8.93 % 8.80 % 9.20 %
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17 NON-GAAP RECONCILIATIONS, Continued TABLE 16 – RETURN ON AVERAGE TANGIBLE COMMON EQUITY - NON-GAAP RECONCILIATION (Dollars In Thousands) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 Average Tangible Common Equity: Average stockholders' equity (GAAP) $ 346,977$ 339,249 $ 287,860 $ 344,124 $ 282,928 Less: Goodwill (63,311) (63,311) (52,505) (63,311) (52,505) Less: Intangible Asset, Core Deposit Intangibles, net (9,584) (10,400) (1,815) (10,395) (1,919) Related Tax Effect on Core Deposit Intangibles, net 2,108 2,288 399 2,287 422 Average Tangible Common Equity (Non-GAAP) (1)$ 276,190$ 267,826$ 233,939$ 272,705 $ 228,926 Net Income- (GAAP) $ 16,285 $ 14,057 $ 6,551 $ 30,615 $ 18,961 Annualized Net Income- (GAAP) (2) $ 65,140 $ 56,228 $ 26,204 $ 40,820 $ 25,281 Return on Average Tangible Common Equity = (2)/(1) 23.59% 20.99% 11.20% 14.97% 11.04% Net Income- (GAAP) (3) $ 16,285 $ 14,057 $ 6,551 $ 30,615 $ 18,961 Add: Merger-related expenses (4) 0 0 882 0 1,049 Less: Tax effect of merger-related expenses (5) 0 0 (185) 0 (199) Adjusted Net Income (Non-GAAP) (6)=(3)+(4)+(5)$ 16,285 $ 14,057 $ 7,248 $ 30,615 $ 19,811 Annualized Adjusted Net Income- (6) $ 65,140 $ 56,228 $ 28,992 $ 40,820 $ 26,415 Return on Average Tangible Common Equity, Adjusted for Merger-Related Expenses = (6)/(1) 23.59% 20.99% 12.39% 14.97% 11.54%