8-K - CZNC - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

November 8, 2022

Date of Report (Date of earliest event reported)

Citizens & Northern Corporation ****

(Exact name of registrant as specified in its charter)

Pennsylvania	0-16084	23-2451943
(State or other jurisdiction of incorporation)	(Commission <br>File Number)	(IRS Employer <br>Ident. No.)

90-92 Main Street , Wellsboro , Pennsylvania		16901
(Address of principal executive offices)		(Zip Code)

( 570 ) 724-3411

Registrant’s telephone number, including area code

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $1.00 per share	CZNC	Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD

On November 9, 2022, J. Bradley Scovill, President and CEO, and Mark A. Hughes, Treasurer and Chief Financial Officer, of Citizens & Northern Corporation (Corporation) are scheduled to present an overview of the Corporation to various institutional analysts and investors for the Piper Sandler East Coast Financial Services Conference.

The Investor Presentation to be used in discussions with the analysts and investors is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference. This Current Report is being furnished pursuant to Regulation FD and no part shall be deemed "filed" for any purpose.

Item 9.01 Financial Statements and Exhibits.

99.1	Citizens & Northern Corporation Investor Presentation
104	Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

6
	CITIZENS & NORTHERN CORPORATION
Dated: November 8, 2022	By:	/s/ Mark A. Hughes
		Mark A. Hughes
		Treasurer and Chief Financial Officer

Exhibit 99.1

Piper Sandler & Co.<br>East Coast Financial Services<br>Conference<br>November 9, 2022
CAUTION<br>REGARDING<br>FORWARD<br>LOOKING<br>STATEMENTS<br>This<br>presentation<br>contains<br>forward<br>-<br>looking<br>statements<br>within<br>the<br>meaning<br>of<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>that<br>relate<br>to<br>future<br>events<br>or<br>the<br>future<br>performance<br>of<br>the<br>Company<br>..<br>Forward<br>-<br>looking<br>statements<br>are<br>not<br>guarantees<br>of<br>performance<br>or<br>results<br>..<br>These<br>forward<br>-<br>looking<br>statements<br>are<br>based<br>on<br>the<br>current<br>beliefs<br>and<br>expectations<br>of<br>the<br>respective<br>management<br>of<br>the<br>Company<br>and<br>are<br>inherently<br>subject<br>to<br>significant<br>business,<br>economic<br>and<br>competitive<br>uncertainties<br>and<br>contingencies,<br>many<br>of<br>which<br>are<br>beyond<br>their<br>respective<br>control<br>and<br>which<br>may<br>be<br>heightened<br>by<br>the<br>novel<br>coronavirus,<br>or<br>COVID<br>-<br>19<br>pandemic<br>..<br>In<br>addition,<br>these<br>forward<br>-<br>looking<br>statements<br>are<br>subject<br>to<br>assumptions<br>with<br>respect<br>to<br>future<br>business<br>strategies<br>and<br>decisions<br>that<br>are<br>subject<br>to<br>change<br>..<br>Actual<br>results<br>may<br>differ<br>materially<br>from<br>the<br>anticipated<br>results<br>discussed<br>or<br>implied<br>in<br>these<br>forward<br>-<br>looking<br>statements<br>because<br>of<br>numerous<br>possible<br>uncertainties<br>..<br>Words<br>like<br>"may,"<br>"plan,"<br>"contemplate,"<br>"anticipate,"<br>"believe,"<br>"intend,"<br>"continue,"<br>"expect,"<br>"project,"<br>"predict,"<br>"estimate,"<br>"could,"<br>"should,"<br>"would,"<br>"will,"<br>and<br>similar<br>expressions,<br>should<br>be<br>considered<br>as<br>identifying<br>forward<br>-<br>looking<br>statements,<br>although<br>other<br>phrasing<br>may<br>be<br>used<br>..<br>Such<br>forward<br>-<br>looking<br>statements<br>involve<br>risks<br>and<br>uncertainties<br>and<br>may<br>not<br>be<br>realized<br>due<br>to<br>a<br>variety<br>of<br>factors<br>..<br>Additional<br>factors<br>that<br>could<br>cause<br>actual<br>results<br>to<br>differ<br>materially<br>from<br>those<br>expressed<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>are<br>discussed<br>in<br>the<br>reports<br>(such<br>as<br>Annual<br>Reports<br>on<br>Form<br>10<br>-<br>K<br>and<br>Quarterly<br>Reports<br>on<br>Form<br>10<br>-<br>Q)<br>filed<br>by<br>the<br>Company<br>with<br>the<br>Securities<br>and<br>Exchange<br>Commission<br>..<br>You<br>should<br>consider<br>such<br>factors<br>and<br>not<br>place<br>undue<br>reliance<br>on<br>such<br>forward<br>-<br>looking<br>statements<br>..<br>No<br>obligation<br>is<br>undertaken<br>by<br>the<br>Company<br>to<br>update<br>such<br>forward<br>-<br>looking<br>statements<br>to<br>reflect<br>events<br>or<br>circumstances<br>occurring<br>after<br>the<br>issuance<br>of<br>this<br>presentation<br>..<br>NON<br>-<br>GAAP<br>FINANCIAL<br>MEASURES<br>Statements<br>included<br>in<br>this<br>presentation<br>include<br>non<br>-<br>GAAP<br>financial<br>measures<br>and<br>should<br>be<br>read<br>along<br>with<br>the<br>accompanying<br>tables<br>under<br>the<br>section<br>titled<br>“Non<br>-<br>GAAP<br>Reconciliations<br>..<br>”<br>The<br>Company<br>uses<br>non<br>-<br>GAAP<br>financial<br>measures<br>to<br>analyze<br>its<br>performance<br>..<br>Management<br>believes<br>that<br>non<br>-<br>GAAP<br>financial<br>measures<br>provide<br>additional<br>useful<br>information<br>that<br>allows<br>readers<br>to<br>evaluate<br>the<br>ongoing<br>performance<br>of<br>the<br>Company<br>and<br>provide<br>meaningful<br>comparison<br>to<br>its<br>peers<br>..<br>Non<br>-<br>GAAP<br>financial<br>measures<br>should<br>not<br>be<br>considered<br>as<br>an<br>alternative<br>to<br>any<br>measure<br>of<br>performance<br>or<br>financial<br>condition<br>as<br>promulgated<br>under<br>GAAP,<br>and<br>investors<br>should<br>consider<br>the<br>Company’s<br>performance<br>and<br>financial<br>condition<br>as<br>reported<br>under<br>GAAP<br>and<br>all<br>other<br>relevant<br>information<br>when<br>assessing<br>the<br>performance<br>or<br>financial<br>condition<br>of<br>the<br>Company<br>..<br>Non<br>-<br>GAAP<br>financial<br>measures<br>have<br>limitations<br>as<br>analytical<br>tools,<br>and<br>investors<br>should<br>not<br>consider<br>them<br>in<br>isolation<br>or<br>as<br>a<br>substitute<br>for<br>analysis<br>of<br>the<br>results<br>or<br>financial<br>condition<br>as<br>reported<br>under<br>GAAP<br>..<br>Legal Disclaimer<br>2
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3<br>Overview<br>158<br>-<br>year<br>-<br>old institution with a strong market position<br>Experienced management team with a proven track record of M&A<br>Consistently strong profitability with diversified revenue streams<br>Balanced loan portfolio with sound asset quality<br>Stable, low<br>-<br>cost core deposit franchise<br>1<br>2<br>3<br>4<br>5<br>Strong capital position to support growth strategy and dividends<br>6
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158<br>-<br>year<br>-<br>old<br>institution with a<br>strong market position<br>4
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•<br>Citizens & Northern Corporation (“C&N”) is a bank holding company with assets of approximately $2.4 billion<br>at September 30, 2022. It was founded in 1987 and has been listed on the NASDAQ since 2005. C&N’s<br>principal subsidiary is Citizens & Northern Bank (“C&N Bank”).<br>•<br>Headquartered in Wellsboro, PA, C&N Bank has 29 full<br>-<br>service branches and 1 limited production office<br>(LPO). C&N Bank was founded in 1864.<br>•<br>23 branches in the Northern Tier of PA and Steuben County NY and an LPO dedicated to commercial<br>and other lending services in Elmira, NY. Recently closed branches in Monroeton, PA and Canisteo, NY.<br>•<br>4 branches in Southeastern PA<br>•<br>In 2019, the Company acquired Monument Bancorp, Inc. ($376m assets)<br>•<br>In 2020, the Company acquired Covenant Financial, Inc. ($608m assets)<br>•<br>2 branches in Southcentral PA<br>•<br>Trust services and investment and insurance products are offered through C&N’s Wealth Management<br>Group. At September 30, 2022, trust assets under management totaled approximately $1.0 billion.<br>•<br>C&N’s common stock trades on the NASDAQ Capital Market Securities under the symbol CZNC. At<br>November 4, 2022, the market capitalization was $372 million.<br>•<br>The closing market price on November 4, 2022 was $23.98, or 14.9X annualized earnings for the nine<br>months ended September 30, 2022 and 203% of tangible common book value per share at September 30,<br>2022. Based on the most recent quarterly dividend of $0.28 per share and the closing market price on<br>November 4, 2022, the annualized dividend yield was 4.67%.<br>C&N Franchise<br>5
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CZNC (29)<br>CZNC LPO (1)<br>County of Operation<br>Adjacent County<br>Elk<br>Tioga<br>York<br>Potter<br>Steuben<br>Berks<br>Bradford<br>Lycoming<br>Clinton<br>Warren<br>Allegany<br>Clearfield<br>McKean<br>Luzerne<br>Cattaraugus<br>Bucks<br>Lancaster<br>Tioga<br>Chester<br>Ontario<br>Adams<br>Yates<br>Burlington<br>Dauphin<br>Livingston<br>Susquehanna<br>Sullivan<br>Union<br>Tompkins<br>Lehigh<br>Cumberland<br>Wyoming<br>Chemung<br>Lebanon<br>Schuyler<br>Columbia<br>Cameron<br>Hunterdon<br>Montgomery<br>Mercer<br>Northumberland<br>Northampton<br>Delaware<br>Montour<br>Current Branch Footprint<br>6
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(1)<br>Source: census.gov/quickfacts<br>(2)<br>Median household income (in 2020 dollars), 2016<br>-<br>2020<br>7<br>Market Demographic<br>Information<br>Northern<br>Tier<br>15%<br>Southeastern<br>PA<br>46%<br>Southcentral<br>PA<br>39%<br>Northern Tier<br>Southeastern PA<br>Southcentral PA<br>Demographic Data<br>Region<br> Population<br>Estimate,<br>July 1, 2021 (1)<br> % of Total<br>Population<br>Estimate in<br>C&N Markets<br> Median<br>Household<br>Income (1,2)<br>Northern Tier<br>373,901<br><br><br>14.54%<br>Southeastern PA<br>1,184,747<br><br><br>46.08%<br>Southcentral PA<br>1,012,348<br><br><br>39.38%<br>2,570,996<br><br><br>100.00%<br>Northern Tier<br>Steuben County, NY<br>92,948<br><br><br>3.62%<br>$55,349<br>Bradford County, PA<br>59,892<br><br><br>2.33%<br>$52,375<br>Cameron County, PA<br>4,459<br><br><br>0.17%<br>$40,342<br>Lycoming County, PA<br>113,605<br><br><br>4.42%<br>$54,906<br>McKean County, PA<br>39,941<br><br><br>1.55%<br>$49,240<br>Potter County, PA<br>16,259<br><br><br>0.63%<br>$47,696<br>Sullivan County, PA<br>5,868<br><br><br>0.23%<br>$49,830<br>Tioga County, PA<br>40,929<br><br><br>1.59%<br>$51,838<br>373,901<br><br><br>14.54%<br>Southeastern PA<br>Bucks County<br>646,098<br><br><br>25.13%<br>$93,181<br>Chester County<br>538,649<br><br><br>20.95%<br>$104,161<br>1,184,747<br><br><br>46.08%<br>Southcentral PA<br>Lancaster County<br>553,652<br><br><br>21.53%<br>$69,588<br>York County<br>458,696<br><br><br>17.84%<br>$68,940<br>1,012,348<br><br><br>39.38%
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Experienced<br>management team with<br>a proven track record of<br>M&A<br>8
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9<br>Experienced Management Team<br>Name<br>Position<br>Years of<br>Banking<br>Experience<br>Years with<br>Citizens &<br>Northern<br>J. Bradley Scovill<br>President and CEO<br>31<br>7<br>Mark Hughes<br>Chief Financial Officer<br>22<br>22<br>Matthew Bower<br>1<br>Chief Wealth Management Officer<br>32<br>0<br>Alexander Balagour<br>Chief Information Officer<br>9<br>1<br>Shelley D’Haene<br>Chief Digital & Payments Officer<br>23<br>23<br>Stan Dunsmore<br>Chief Credit Officer<br>38<br>15<br>Harold (Hal) Hoose<br>Chief Revenue Officer<br>32<br>25<br>John Reber<br>Chief Risk Officer<br>30<br>18<br>Thomas L. Rudy, Jr.<br>Chief Delivery Officer & Northern Tier Region<br>President<br>23<br>23<br>Blair Rush<br>Southeastern PA Region President<br>41<br>2<br>Tracy Watkins<br>Chief Human Resources Officer<br>19<br>19<br>Total<br>268<br>155<br>•<br>Total Board and Management Ownership of C&N is approximately 3.5%.<br>¹<br>Matthew Bower joined C&N in February 2022
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10<br>Current Strategic Focus<br>Source: Company Documents<br>•<br>Target business segments we know and understand<br>•<br>Significant progress establishing relationship model in newer markets<br>•<br>Blending digital with personal/physical access<br>Relationship Banking Model<br>•<br>Beginning to harvest results of recent investments<br>•<br>Continue to implement products and services that complement<br>Fiserv/DNA core and Q2 internet banking platform<br>Digital Transformation<br>•<br>Ongoing Board refreshment, including 2 new members added in 2021<br>and 1 retirement in 2022; Terry Lehman appointed Chairman in 2021<br>•<br>Recent hirings of executives in critical positions, Chief Information<br>Officer (2021) and Chief Wealth Management Officer (2022)<br>•<br>Continue focus on development and succession across company lines<br>Leadership, Management and<br>Board Development<br>•<br>Further deployment of strong capital base<br>•<br>Organic growth<br>•<br>Multiple business lines<br>•<br>Opportunistic M&A<br>–<br>Banks and Wealth<br>Growth Strategy<br>•<br>Strategic investing in people, new markets and technology<br>•<br>Sustain solid earnings performance and risk profile<br>•<br>Continue to position the stock to be fairly valued through growth in EPS,<br>dividends and share repurchases<br>Shareholder Value
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•<br>Cloud Migration<br>•<br>Bank data centers will be 100% migrated to Amazon Web Services, Inc. (AWS) by the end of the year, thus<br>reducing operational risk and adding agility<br>•<br>Actively seeking best in class Software as a Service (SaaS) solutions like Salesforce to accelerate business<br>process transformation and cloud technology adoption<br>•<br>Data & Analytics<br>•<br>Central data warehouse, powered by Snowflake, is now operational and supports business critical data<br>processing and analytics applications<br>•<br>Launched 9 Qlik Sense analytics apps to support commercial lending, deposit, and transaction analysis<br>•<br>Business Applications & Integration (Application Programming Interfaces, or APIs)<br>•<br>Focus on digital customer experience by integrating applications and making more services available to<br>customers through the mobile/online app (Examples include SmartMoney, Autobooks, Carefull)<br>•<br>Salesforce Financial Services Cloud (FSC) with initial focus on enhancing workflow efficiency is in production,<br>with estimated labor savings over 260 hours per month<br>•<br>Organizational Structure Evolving<br>•<br>Technology, Operations and Digital departments are transforming to support agility, customer focus and speed<br>of execution<br>11<br>Strategic Technology Initiatives & Digital Transformation
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Consistently strong<br>profitability with<br>diversified revenue<br>streams<br>12
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13<br>Summary Statistics<br>At September 30, 2022<br>Total Assets<br>$2,400 Million<br>Net Loans<br>$1,674 Million<br>Total Deposits<br>$2,040 Million<br>Tangible Common Equity<br>1<br>$183.3 Million<br>Tang. Common Equity / Tang. Assets<br>1<br>7.82%<br>Tier 1 Ratio<br>13.48%<br>Total Risk Based Capital<br>15.80%<br>Allowance for Loan Losses / Total Loans<br>0.96%<br>Allowance for Loan Losses + Credit Adjustment on Purchased Non<br>-<br>impaired<br>Loans / Total Loans + Credit Adjustment<br>1.08%<br>NPAs<br>2<br>/ Assets<br>0.87%<br>NPAs Excluding PCI Loans / Total Assets<br>0.71%<br>For the Nine Months Ended September 30, 2022:<br>Annualized Return on Average Assets<br>1.06%<br>Annualized Return on Average Equity<br>9.20%<br>Annualized Return on Average Tangible Common Equity<br>1<br>11.55%<br>Efficiency Ratio<br>1<br>64.16%<br>Earnings Per Share<br>$1.21<br>Book Value Per Share<br>$15.41<br>Tangible Book Value Per Share<br>1<br>$11.83<br>¹ See reconciliation of certain GAAP to Non<br>-<br>GAAP reconciliations<br>² Defined as non<br>-<br>accrual loans + all loans that are 90 days past due + OREO
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14<br>Q3 Financial Highlights<br>Source: Company Documents; Financial data as of September 30, 2022<br>CONDENSED, CONSOLIDATED<br>EARNINGS INFORMATION<br><br>(Dollars In Thousands, Except Per Share Data)<br><br>(Unaudited)<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>3RD<br><br><br><br>3RD<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>QUARTER<br><br><br>QUARTER<br><br><br><br><br><br><br><br><br><br><br>2022<br><br><br>2021<br><br><br><br><br><br><br><br><br><br><br>(Current)<br><br><br>(Prior<br><br>Year)<br><br><br>$<br><br>Incr.<br><br>(Decr.)<br><br><br>%<br><br>Incr.<br><br>(Decr.)<br><br><br><br>Interest and Dividend Income<br><br><br>$<br><br><br>23,710<br><br><br>$<br><br><br>21,073<br><br><br>$<br><br><br>2,637<br><br><br><br><br>12.51<br><br>%<br><br>Interest Expense<br><br><br><br><br><br>2,831<br><br><br><br><br><br>1,614<br><br><br><br><br><br>1,217<br><br><br><br><br>75.40<br><br>%<br><br>Net Interest Income<br><br><br><br><br><br>20,879<br><br><br><br><br><br>19,459<br><br><br><br><br><br>1,420<br><br><br><br><br>7.30<br><br>%<br><br>Provision for Loan Losses<br><br><br><br><br><br>3,794<br><br><br><br><br><br>1,530<br><br><br><br><br><br>2,264<br><br><br><br><br>147.97<br><br>%<br><br>Net Interest Income After Provision for Loan Losses<br><br><br><br><br><br>17,085<br><br><br><br><br><br>17,929<br><br><br><br><br><br>(844)<br><br><br><br><br>(4.71)<br><br>%<br><br>Noninterest Income<br><br><br><br><br><br>5,651<br><br><br><br><br><br>6,359<br><br><br><br><br><br>(708)<br><br><br><br><br>(11.13)<br><br>%<br><br>Net Gains on Available<br>-<br>for<br>-<br>sale Debt Securities<br><br><br><br><br><br>20<br><br><br><br><br>23<br><br><br><br><br><br>(3)<br><br><br><br><br>(13.04)<br><br>%<br><br>Noninterest Expense<br><br><br><br><br><br>17,443<br><br><br><br><br><br>15,346<br><br><br><br><br><br>2,097<br><br><br><br><br>13.66<br><br>%<br><br>Income Before Income Tax Provision<br><br><br><br><br><br>5,313<br><br><br><br><br><br>8,965<br><br><br><br><br><br>(3,652)<br><br><br><br><br>(40.74)<br><br>%<br><br>Income Tax Provision<br><br><br><br><br><br>858<br><br><br><br><br><br>1,566<br><br><br><br><br><br>(708)<br><br><br><br><br>(45.21)<br><br>%<br><br>Net Income<br><br><br>$<br><br><br>4,455<br><br><br>$<br><br><br>7,399<br><br><br>$<br><br><br>(2,944)<br><br><br><br><br>(39.79)<br><br>%<br><br>Net Income Attributable to Common Shares (1)<br><br><br>$<br><br><br>4,416<br><br><br>$<br><br><br>7,336<br><br><br>$<br><br><br>(2,920)<br><br><br><br><br>(39.80)<br><br>%<br><br>PER COMMON SHARE DATA:<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Net Income<br>-<br><br>Basic<br><br><br>$<br><br><br>0.29<br><br><br>$<br><br><br>0.47<br><br><br>$<br><br><br>(0.18)<br><br><br><br>(38.30)<br><br>%<br><br>Net Income<br>-<br><br>Diluted<br><br><br>$<br><br><br>0.29<br><br><br>$<br><br><br>0.47<br><br><br>$<br><br><br>(0.18)<br><br><br><br>(38.30)<br><br>%<br><br>Dividends Per Share<br><br><br>$<br><br><br>0.28<br><br><br>$<br><br><br>0.28<br><br><br>$<br><br>0.00<br><br><br><br>0.00<br><br>%<br><br>Number of Shares Used in Computation<br>-<br><br>Basic<br><br><br><br><br><br>15,364,075<br><br><br><br><br><br>15,703,932<br><br><br><br><br><br><br><br><br><br><br><br>Number of Shares Used in Computation<br>-<br><br>Diluted<br><br><br><br><br><br>15,367,189<br><br><br><br><br><br>15,710,345<br><br><br><br><br><br><br><br><br><br><br><br><br>(1)<br><br><br>Basic and diluted net income per common share are<br><br>determined based on net income less earnings allocated to nonvested restricted<br>shares with nonforfeitable dividends.
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15<br>Nine Months Ended September 30, 2022<br>Financial Highlights<br>Source: Company Documents; Financial data as of September 30, 2022<br>CONDENSED, CONSOLIDATED<br>EARNINGS INFORMATION<br><br>(Dollars In Thousands, Except Per Share Data)<br><br>(Unaudited)<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>NINE MONTHS ENDED<br><br><br><br><br><br><br><br><br><br><br>September<br><br>30,<br><br><br><br><br><br><br><br><br><br><br><br>2022<br><br><br>2021<br><br><br><br><br><br><br><br><br><br><br><br>(Current)<br><br><br><br>(Prior<br><br>Year)<br><br><br><br>$<br><br>Incr.<br><br>(Decr.)<br><br><br><br>%<br><br>Incr.<br><br>(Decr.)<br><br><br><br>Interest and Dividend Income<br><br><br>$<br><br><br>66,792<br><br><br>$<br><br><br>63,255<br><br><br>$<br><br><br>3,537<br><br><br><br><br>5.59<br><br>%<br><br>Interest Expense<br><br><br><br><br><br>5,956<br><br><br><br><br><br>5,032<br><br><br><br><br><br>924<br><br><br><br><br>18.36<br><br>%<br><br>Net Interest Income<br><br><br><br><br><br>60,836<br><br><br><br><br><br>58,223<br><br><br><br><br><br>2,613<br><br><br><br><br>4.49<br><br>%<br><br>Provision for Loan Losses<br><br><br><br><br><br>4,993<br><br><br><br><br><br>2,533<br><br><br><br><br><br>2,460<br><br><br><br><br>97.12<br><br>%<br><br>Net Interest Income After Provision for Loan Losses<br><br><br><br><br><br>55,843<br><br><br><br><br><br>55,690<br><br><br><br><br><br>153<br><br><br><br><br>0.27<br><br>%<br><br>Noninterest Income<br><br><br><br><br><br>18,302<br><br><br><br><br><br>19,441<br><br><br><br><br><br>(1,139)<br><br><br><br><br>(5.86)<br><br>%<br><br>Net Gains on Available<br>-<br>for<br>-<br>sale Debt Securities<br><br><br><br><br><br>21<br><br><br><br><br>25<br><br><br><br><br>(4)<br><br><br><br>(16.00)<br><br>%<br><br>Noninterest Expense<br><br><br><br><br><br>51,368<br><br><br><br><br><br>46,454<br><br><br><br><br><br>4,914<br><br><br><br><br>10.58<br><br>%<br><br>Income Before Income Tax Provision<br><br><br><br><br><br>22,798<br><br><br><br><br><br>28,702<br><br><br><br><br><br>(5,904)<br><br><br><br><br>(20.57)<br><br>%<br><br>Income Tax Provision<br><br><br><br><br><br>3,959<br><br><br><br><br><br>5,456<br><br><br><br><br><br>(1,497)<br><br><br><br><br>(27.44)<br><br>%<br><br>Net Income<br><br><br>$<br><br><br>18,839<br><br><br>$<br><br><br>23,246<br><br><br>$<br><br><br>(4,407)<br><br><br><br><br>(18.96)<br><br>%<br><br>Net Income Attributable to Common Shares (1)<br><br><br>$<br><br><br>18,670<br><br><br>$<br><br><br>23,057<br><br><br>$<br><br><br>(4,387)<br><br><br><br><br>(19.03)<br><br>%<br><br>PER COMMON SHARE DATA:<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Net Income<br>-<br><br>Basic<br><br><br>$<br><br><br>1.21<br><br><br>$<br><br><br>1.46<br><br><br>$<br><br><br>(0.25)<br><br><br><br><br>(17.12)<br><br>%<br><br>Net Income<br>-<br><br>Diluted<br><br><br>$<br><br><br>1.21<br><br><br>$<br><br><br>1.46<br><br><br>$<br><br><br>(0.25)<br><br><br><br><br>(17.12)<br><br>%<br><br>Dividends Per Share<br><br><br>$<br><br><br>0.84<br><br><br>$<br><br><br>0.83<br><br><br>$<br><br>0.01<br><br><br><br>1.20<br><br>%<br><br>Number of Shares Used in Computation<br>-<br><br>Basic<br><br><br><br><br><br>15,482,672<br><br><br><br><br><br>15,806,897<br><br><br><br><br><br><br><br><br><br><br><br>Number of Shares Used in Computation<br>-<br><br>Diluted<br><br><br><br><br><br>15,485,948<br><br><br><br><br><br>15,813,129<br><br><br><br><br><br><br><br><br><br><br><br><br>(1)<br><br><br>Basic and diluted net income per common share are<br><br>determined based on net income less earnings allocated to nonvested restricted<br>shares with nonforfeitable dividends.
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16<br>Strong Historical Profitability<br>Net Income ($M)<br>Efficiency Ratio (%)<br>ROAA (%)<br>Net Interest Margin (%)<br>1)<br>Annualized<br>2)<br>Reference GAAP to Non GAAP reconciliation pages in appendix<br>Source: S&P Global Market Intelligence<br>GAAP<br>Non<br>-<br>GAAP<br>Adjusted<br>2<br>GAAP<br>Non<br>-<br>GAAP<br>Adjusted<br>2<br>$22.0<br>$19.5<br>$19.2<br>$30.6<br>$25.1<br>$20.4<br>$22.8<br>$26.5<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022<br>Q3 YTD¹<br>1.72<br>1.27<br>0.96<br>1.32<br>1.06<br>1.60<br>1.48<br>1.32<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022<br>Q3 YTD¹
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17<br>Net Interest Margin Trend<br>Net Interest Margin (%)<br>Source: Company Documents
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18<br>Average Loan Yield and Deposit Cost<br>1)<br>Purchase accounting<br>-<br>related adjustments are excluded from the calculation of average loan yield and deposit cost.<br>2)<br>PPP loans are excluded from the calculation of average loan yield<br>3)<br>Noninterest<br>-<br>bearing and interest<br>-<br>bearing deposits are included in the calculation of average deposit cost.<br>Source: Company Documents
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19<br>Deposit Betas<br>1)<br>Purchase accounting<br>-<br>related adjustments are excluded from the calculation of average deposit cost.<br>2)<br>Deposit betas are cumulative for the current cycle; Federal Funds Target rates are end<br>-<br>of<br>-<br>period values
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20<br>Diversified Revenue: Meaningful<br>Contribution of Fee Income<br>1)<br>Financial Data shown on an annualized basis<br>2)<br>Annualized returns on tax<br>-<br>exempt securities and loans are presented on a fully taxable<br>-<br>equivalent basis using a 21% marginal inc<br>ome tax rate.<br>Source: Company Documents<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022<br>Q3 YTD<br>Trust Revenue<br>$5,838<br>$6,106<br>$6,321<br>$7,234<br>$5,245<br>Brokerage and Insurance Revenue<br>1,123<br>1,433<br>1,486<br>1,860<br>1,784<br>Service Charges on Deposit Accounts<br>5,171<br>5,358<br>4,231<br>4,633<br>3,662<br>Interchange Revenue from Debit Card Transactions<br>2,546<br>2,754<br>3,094<br>3,855<br>3,050<br>Net Gains from Sales of Loans<br>682<br>924<br>5,403<br>3,428<br>733<br>Loan Servicing Fees, Net<br>347<br>100<br>(61)<br>694<br>757<br>Increase in Cash Surrender Value of Life Insurance<br>394<br>402<br>515<br>573<br>405<br>Other Noninterest Income<br>2,496<br>2,207<br>3,355<br>3,580<br>2,666<br>Total Noninterest Income, Excluding Realized Gains<br>$18,597<br>$19,284<br>$24,344<br>$25,857<br>$18,302<br>Total: Net Interest Income<br>2<br>$47,004<br>$55,532<br>$68,545<br>$79,074<br>$61,759<br>Plus: Noninterest Income, Excluding Realized Gains<br>$18,597<br>$19,284<br>$24,344<br>$25,857<br>$18,302<br>Operating Revenue<br>$65,601<br>$74,816<br>$92,889<br>$104,931<br>$80,061<br>Total Noninterest Income / Operating Revenue (%)<br>28.35%<br>25.78%<br>26.21%<br>24.64%<br>22.86%<br>Total Noninterest Income / Average Assets (%)<br>1.46%<br>1.25%<br>1.21%<br>1.11%<br>1.03%<br>1<br>Dollars in Thousands
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21<br>Targeted Balance<br>Sheet Growth<br>Total Assets ($M)<br>Total Deposits ($M)<br>Total Loans and Leases ($M)<br>Total Equity ($M)<br>CAGR¹:<br>18.0%<br>CAGR¹:<br>19.9%<br>Actual (Ex. PPP)<br>PPP Loans<br>1)<br>CAGR calculated from 2018Y to 2022Q3<br>2)<br>Reference GAAP to Non GAAP reconciliation pages in appendix<br>Source: S&P Global Market Intelligence<br>90%<br>94%<br>80%<br>CAGR¹:<br>21.0%<br>83%<br>CAGR¹:<br>5.2%<br>$197<br>$244<br>$300<br>$301<br>$239<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>$828<br>$1,182<br>$1,644<br>$1,565<br>$1,690<br>$1,538<br>$1,512<br>$132<br>$27<br>$2<br>$1,688<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>$1,291<br>$1,654<br>$2,239<br>$2,328<br>$2,400<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>$<br>1,034<br>$<br>1,253<br>$<br>1,820<br>$<br>1,925<br>$<br>2,040<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3
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Balanced loan<br>portfolio with sound<br>asset quality<br>22
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•<br>Diversified strategy across lending products<br>and geographies<br>•<br>Relationship based lending strategy with<br>strong credit culture<br>•<br>MRQ yield on loans of 4.91%, or 4.78%<br>excluding PPP and purchase accounting<br>related income<br>23<br>Diversified Lending Strategy &<br>Portfolio Composition<br>2022Q3<br>Gross Loans:<br>$1,690M<br>Breakdown<br>By<br>Geography<br>2022Q3<br>Commercial<br>Loans:<br>$1,082M<br>Nonowner<br>-<br>Occupied RE<br>26%<br>C&I<br>10%<br>Owner<br>-<br>Occupied RE<br>13%<br>PPP<br>0%<br>Residential<br>35%<br>Other<br>11%<br>C&D<br>5%<br>Northern<br>Tier<br>42%<br>Southeast<br>PA<br>48%<br>South<br>Central PA<br>6%<br>Other<br>4%<br>Nonowner<br>-<br>Occupied RE<br>40%<br>Owner<br>-<br>Occupied RE<br>21%<br>Commercial<br>and Industrial<br>16%<br>Multi<br>-<br>Family<br>Residential<br>5%<br>Political<br>Subdivisions<br>8%<br>Commercial Construction<br>7%<br>Other<br>Commercial<br>3%<br>Source: Company Documents; Financial data as of September 30, 2022
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24<br>Consistent and Well Covered<br>Asset Quality Metrics<br>1)<br>Reference GAAP to Non<br>-<br>GAAP reconciliation pages in appendix<br>2)<br>Net charge<br>-<br>offs in YTD 2022Q3 have been annualized for purposes of this ratio.<br>Source: S&P Global Market Intelligence and company documents<br>NPAs / Assets (%)<br>Loan Loss Reserve / Total Loans (%)<br>NCOs<br>2<br>/ Avg. Loans (%)<br>Loan Loss Provision / NCOs (%)<br>1.37<br>0.80<br>1.10<br>0.94<br>0.87<br>0.78<br>(Excluding PCIs)<br>1<br>0.80<br>(Excluding PCIs)<br>1<br>0.66<br>(Excluding PCIs)<br>1<br>0.71<br>(Excluding PCIs)<br>1<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>0.02<br>0.03<br>0.16<br>0.09<br>0.20<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>1.12<br>0.83<br>0.69<br>0.87<br>0.96<br>1.15<br>(Credit Discount & ex. PPP)<br>1<br>1.10<br>(Credit Discount & ex. PPP<br>)<br>1<br>1.08<br>(Credit Discount &<br>ex. PPP)<br>1<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>446<br>264<br>166<br>243<br>212<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>YTD<br>YTD
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Stable, low<br>-<br>cost core<br>deposit franchise<br>25
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26<br>Strong Core Deposit Base<br>Source: Company Documents; Financial data as of September 30, 2022<br>•<br>Total deposits excluding time and brokered of<br>$1.74B, which represents 85.2% of total deposits<br>•<br>0.27% cost of total deposits in nine months ended<br>September 30, 2022<br>•<br>Noninterest<br>-<br>bearing deposits were $558M, and<br>represents 27.3% of total deposits<br>2022Q3<br>Total Deposits:<br>$2,040M<br>MMDA & Savings<br>33.5%<br>Noninterest<br>-<br>Bearing Demand<br>27.3%<br>Interest<br>-<br>Bearing<br>Demand<br>24.3%<br>Time < $250k<br>9.7%<br>Jumbo Time<br>3.5%<br>Brokered<br>1.6%<br>Deposits Type<br>9/30/2022<br>Balance<br>% Total<br>MMDA & Savings<br>$684,169<br>33.5%<br>Noninterest<br>-<br>Bearing Demand<br>$557,769<br>27.3%<br>Interest<br>-<br>Bearing Demand<br>$494,843<br>24.3%<br>Time <$250k<br>$198,738<br>9.7%<br>Jumbo Time<br>$71,701<br>3.5%<br>Brokered<br>$32,375<br>1.6%<br>Total<br>$2,039,595<br>100.0%<br>Dollars in Thousands
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Source: FDIC Summary of Deposits; data as of June 30, 2022<br>27<br>Strong Presence in Legacy Markets Support<br>Our Continued Expansion into Newer, Higher<br>Growth Markets<br>Northern<br>Tier<br>75%<br>Southeastern<br>PA<br>24%<br>Southcentral<br>PA<br>1%<br>Northern Tier<br>Southeastern PA<br>Southcentral PA<br>Total Deposits ($000)<br>As of June 30, 2022<br>Region<br> C&N<br>Deposits<br> % of Total<br>C&N Deposits<br> Total Market<br>Deposits<br>C&N Market<br>Share<br>Northern Tier<br>1,486,164<br><br><br>75.00%<br>8,576,355<br><br><br>17.33%<br>Southeastern PA<br>474,800<br><br><br>23.96%<br>45,021,035<br><br><br>1.05%<br>Southcentral PA<br>20,618<br><br><br>1.04%<br>26,943,541<br><br><br>0.08%<br>1,981,582<br><br><br>100.00%<br>80,540,931<br><br><br>2.46%<br>Northern Tier<br>Steuben County, NY<br>57,979<br><br><br>2.93%<br>1,343,758<br><br><br>4.31%<br>Bradford County, PA<br>511,099<br><br><br>25.79%<br>1,539,720<br><br><br>33.19%<br>Cameron County, PA<br>33,799<br><br><br>1.71%<br>93,583<br><br><br>36.12%<br>Lycoming County, PA<br>249,600<br><br><br>12.60%<br>3,034,007<br><br><br>8.23%<br>McKean County, PA<br>12,262<br><br><br>0.62%<br>964,362<br><br><br>1.27%<br>Potter County, PA<br>73,598<br><br><br>3.71%<br>344,450<br><br><br>21.37%<br>Sullivan County, PA<br>117,266<br><br><br>5.92%<br>169,688<br><br><br>69.11%<br>Tioga County, PA<br>430,561<br><br><br>21.73%<br>1,086,787<br><br><br>39.62%<br>1,486,164<br><br><br>75.00%<br>8,576,355<br><br><br>17.33%<br>Southeastern PA<br>Bucks County<br>465,814<br><br><br>23.51%<br>26,335,643<br><br><br>1.77%<br>Chester County<br>8,986<br><br><br>0.45%<br>18,685,392<br><br><br>0.05%<br>474,800<br><br><br>23.96%<br>45,021,035<br><br><br>1.05%<br>Southcentral PA<br>Lancaster County<br>2,390<br><br><br>0.12%<br>16,148,446<br><br><br>0.01%<br>York County<br>18,228<br><br><br>0.92%<br>10,795,095<br><br><br>0.17%<br>20,618<br><br><br>1.04%<br>26,943,541<br><br><br>0.08%
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Strong capital position<br>to support growth<br>strategy and dividends<br>28
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29<br>Holding Company<br>Capital Ratios<br>TCE / TA (%)<br>Tier 1 Capital Ratio (%)<br>Leverage Ratio (%)<br>Total RBC Ratio (%)<br>Source: Company Documents<br>14.5<br>13.2<br>11.2<br>10.8<br>7.8<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>14.8<br>13.1<br>10.3<br>10.5<br>10.0<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>23.2<br>19.2<br>15.6<br>15.2<br>13.5<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>24.4<br>20.7<br>17.5<br>18.2<br>15.8<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3
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30<br>Bank Level<br>Capital Ratios<br>Tier 1 Capital Ratio (%)<br>Leverage Ratio (%)<br>Total RBC Ratio (%)<br>Source: Company Documents<br>20.6<br>17.8<br>15.2<br>15.1<br>13.8<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>13.2<br>12.2<br>10.1<br>10.5<br>10.3<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3<br>21.8<br>18.8<br>16.0<br>16.0<br>14.7<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>2022Q3
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Thank You<br>31
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Appendix<br>32
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•<br>J<br>..<br>Bradley<br>Scovill<br>-<br>Mr<br>..<br>Scovill<br>has<br>served<br>as<br>President<br>and<br>Chief<br>Executive<br>Officer<br>of<br>the<br>Corporation<br>and<br>Citizens<br>&<br>Northern<br>Bank<br>(the<br>“Bank”)<br>since<br>March<br>2<br>,<br>2015<br>..<br>Prior<br>to<br>joining<br>the<br>Corporation<br>and<br>Bank,<br>Mr<br>..<br>Scovill<br>most<br>recently<br>served<br>as<br>President<br>and<br>Chief<br>Operating<br>Officer<br>of<br>Kish<br>Bancorp,<br>Inc<br>..<br>and<br>Kish<br>Bank<br>headquartered<br>in<br>Belleville,<br>Pennsylvania,<br>where<br>he<br>was<br>an<br>executive<br>for<br>more<br>than<br>five<br>(<br>5<br>)<br>years<br>..<br>Prior<br>to<br>Kish,<br>Mr<br>..<br>Scovill<br>held<br>various<br>executive<br>management<br>positions<br>with<br>both<br>PNC<br>Bank<br>and<br>Sterling<br>Financial<br>Corporation,<br>headquartered<br>in<br>Lancaster,<br>Pennsylvania<br>..<br>Mr<br>..<br>Scovill<br>received<br>a<br>Bachelor<br>of<br>Science<br>degree<br>in<br>Finance<br>from<br>The<br>Pennsylvania<br>State<br>University<br>..<br>•<br>Mark<br>Hughes<br>-<br>Mr<br>..<br>Hughes<br>serves<br>as<br>Treasurer<br>of<br>the<br>Corporation<br>and<br>Executive<br>Vice<br>President<br>and<br>Chief<br>Financial<br>Officer<br>of<br>the<br>Bank<br>..<br>Mr<br>..<br>Hughes<br>served<br>as<br>Interim<br>President<br>and<br>Chief<br>Executive<br>Officer<br>of<br>the<br>Corporation<br>and<br>Bank<br>from<br>August<br>12<br>,<br>2014<br>through<br>March<br>1<br>,<br>2015<br>..<br>Effective<br>March<br>2<br>,<br>2015<br>,<br>Mr<br>..<br>Hughes<br>resigned<br>from<br>the<br>positions<br>of<br>Interim<br>President<br>and<br>Chief<br>Executive<br>Officer<br>of<br>the<br>Corporation<br>and<br>Bank<br>and<br>was<br>appointed<br>to<br>the<br>positions<br>he<br>had<br>formerly<br>held<br>as<br>Treasurer<br>of<br>the<br>Corporation<br>since<br>November<br>2000<br>and<br>Executive<br>Vice<br>President<br>and<br>Chief<br>Financial<br>Officer<br>of<br>the<br>Bank<br>since<br>August<br>2000<br>..<br>Mr<br>..<br>Hughes<br>is<br>a<br>CPA<br>licensed<br>in<br>Pennsylvania<br>..<br>Mr<br>..<br>Hughes<br>received<br>a<br>Bachelor<br>of<br>Arts<br>degree<br>in<br>Accounting<br>from<br>Lycoming<br>College<br>..<br>•<br>Matthew<br>Bower<br>-<br>Mr<br>..<br>Bower<br>has<br>served<br>as<br>Executive<br>Vice<br>President<br>and<br>Chief<br>Wealth<br>Management<br>Officer<br>of<br>the<br>Bank<br>since<br>February<br>2022<br>..<br>Prior<br>to<br>joining<br>the<br>Bank,<br>Mr<br>..<br>Bower<br>served<br>as<br>a<br>Managing<br>Director<br>at<br>PNC’s<br>Wealth<br>Management<br>Group<br>in<br>Atlanta,<br>GA,<br>where<br>he<br>led<br>the<br>team<br>in<br>delivering<br>industry<br>-<br>leading<br>results<br>in<br>client<br>end<br>employee<br>satisfaction<br>for<br>13<br>years<br>..<br>Mr<br>..<br>Bower<br>received<br>a<br>Masters<br>of<br>Jurisprudence<br>from<br>Texas<br>A&M<br>University,<br>School<br>of<br>Law<br>in<br>Fort<br>Worth,<br>TX,<br>completed<br>the<br>Stanford<br>Graduate<br>School<br>of<br>Business’s<br>Executive<br>Leadership<br>Program<br>and<br>received<br>a<br>Bachelor<br>of<br>Science<br>degree<br>in<br>Political<br>Science<br>from<br>Florida<br>State<br>University<br>..<br>Mr<br>..<br>Bower<br>has<br>several<br>FINRA<br>Licensures<br>and<br>has<br>earned<br>designations<br>as<br>a<br>Certified<br>Trust<br>and<br>Financial<br>Advisor<br>(CTFA),<br>Certified<br>Securities<br>Operations<br>Professional<br>(CSOP)<br>and<br>a<br>Chartered<br>Wealth<br>Manager<br>(CWM)<br>..<br>•<br>Alexander<br>Balagour<br>-<br>Mr<br>..<br>Balagour<br>has<br>served<br>as<br>Executive<br>Vice<br>President<br>and<br>Chief<br>Information<br>Officer<br>of<br>the<br>Bank<br>since<br>May<br>2021<br>..<br>Prior<br>to<br>joining<br>the<br>Bank,<br>Mr<br>..<br>Balagour<br>most<br>recently<br>served<br>as<br>the<br>Chief<br>Information<br>Officer<br>at<br>Customers<br>Bank<br>in<br>Reading,<br>PA,<br>where<br>he<br>led<br>the<br>organization<br>through<br>the<br>transformation<br>of<br>their<br>sales<br>and<br>lending<br>technology,<br>data<br>analytics<br>and<br>customer<br>experience<br>..<br>Mr<br>..<br>Balagour<br>received<br>a<br>Bachelor<br>of<br>Science<br>degree<br>in<br>Computer<br>Science<br>from<br>Arcadia<br>University,<br>where<br>he<br>earned<br>the<br>Sigma<br>Zeta<br>Award<br>in<br>Computer<br>Science,<br>given<br>to<br>the<br>top<br>-<br>graduating<br>student<br>for<br>academic<br>excellence<br>..<br>He<br>went<br>on<br>to<br>receive<br>his<br>Executive<br>Masters<br>in<br>Technology<br>Management<br>from<br>Wharton<br>School<br>and<br>School<br>of<br>Engineering<br>from<br>the<br>University<br>of<br>Pennsylvania<br>..<br>33<br>Executive Officer Biographies
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•<br>Shelley<br>D’Haene<br>-<br>Executive<br>Vice<br>President,<br>Chief<br>Digital<br>Channels<br>and<br>Payments<br>Officer<br>of<br>the<br>Bank<br>since<br>February<br>2021<br>;<br>formerly<br>Executive<br>Vice<br>President,<br>Senior<br>Operations<br>Officer<br>since<br>January<br>2015<br>;<br>and<br>Executive<br>Vice<br>President<br>and<br>Director<br>of<br>Alternative<br>Delivery<br>Channels<br>of<br>the<br>Bank<br>since<br>January<br>2013<br>and<br>Vice<br>President<br>and<br>Cash<br>Management<br>Coordinator<br>of<br>the<br>Bank<br>since<br>February<br>2006<br>after<br>joining<br>the<br>Bank<br>in<br>1999<br>..<br>Shelley<br>is<br>a<br>graduate<br>of<br>PBA<br>School<br>of<br>Banking<br>and<br>PBA<br>Advanced<br>School<br>of<br>Banking<br>..<br>•<br>Stan<br>Dunsmore<br>-<br>Mr<br>..<br>Dunsmore<br>has<br>served<br>as<br>Executive<br>Vice<br>President<br>and<br>Chief<br>Credit<br>Officer<br>of<br>the<br>Bank<br>since<br>January<br>2015<br>..<br>Previously,<br>Mr<br>..<br>Dunsmore<br>served<br>as<br>Vice<br>President<br>and<br>Commercial<br>Loan<br>Sales<br>Officer<br>of<br>the<br>Bank<br>since<br>May<br>2007<br>..<br>Prior<br>to<br>the<br>May<br>2007<br>acquisition<br>of<br>Citizens<br>Trust<br>Company<br>by<br>Citizens<br>&<br>Northern<br>Bank,<br>Mr<br>..<br>Dunsmore<br>served<br>as<br>Vice<br>President<br>and<br>Chief<br>Lending<br>Officer<br>of<br>Citizens<br>Trust<br>Company<br>since<br>1995<br>..<br>Mr<br>..<br>Dunsmore<br>received<br>a<br>Bachelor<br>of<br>Science<br>degree<br>in<br>Management<br>Science<br>from<br>Lock<br>Haven<br>University<br>of<br>Pennsylvania<br>..<br>•<br>Harold<br>(Hal)<br>Hoose<br>-<br>Executive<br>Vice<br>President<br>and<br>Chief<br>Revenue<br>Officer<br>of<br>the<br>Bank<br>since<br>February<br>2021<br>;<br>formerly<br>Executive<br>Vice<br>President<br>and<br>Director<br>of<br>Lending<br>of<br>the<br>Bank<br>since<br>March<br>of<br>2005<br>..<br>Prior<br>to<br>becoming<br>the<br>Director<br>of<br>Lending,<br>Mr<br>..<br>Hoose<br>was<br>a<br>regional<br>commercial<br>relationship<br>manager<br>for<br>C&N<br>since<br>August<br>of<br>1997<br>..<br>Prior<br>to<br>that,<br>Mr<br>..<br>Hoose<br>began<br>his<br>banking<br>career<br>in<br>1990<br>as<br>a<br>management<br>trainee<br>with<br>Commonwealth<br>Bank<br>(Williamsport<br>PA)<br>and<br>moved<br>to<br>the<br>credit/lending<br>area<br>of<br>the<br>bank<br>in<br>April<br>1993<br>..<br>Mr<br>..<br>Hoose<br>received<br>his<br>Bachelor<br>of<br>Science<br>degree<br>from<br>Mansfield<br>University<br>and<br>completed<br>the<br>Graduate<br>School<br>of<br>Banking<br>at<br>the<br>University<br>of<br>Colorado<br>..<br>•<br>John<br>Reber<br>-<br>Executive<br>Vice<br>President<br>and<br>Chief<br>Risk<br>Management<br>Officer<br>of<br>the<br>Bank<br>since<br>February<br>2021<br>;<br>formerly<br>Executive<br>Vice<br>President<br>and<br>Director<br>of<br>Risk<br>Management<br>of<br>the<br>Bank<br>since<br>January<br>2011<br>;<br>formerly<br>Vice<br>President<br>and<br>Director<br>of<br>Risk<br>Management<br>of<br>the<br>Bank<br>since<br>June<br>2004<br>..<br>Prior<br>to<br>joining<br>C&N,<br>Mr<br>..<br>Reber<br>held<br>various<br>staff<br>and<br>management<br>positions<br>in<br>credit,<br>lending<br>and<br>risk<br>management<br>with<br>SunBank,<br>headquartered<br>in<br>Lewisburg,<br>Pennsylvania<br>..<br>Mr<br>..<br>Reber<br>received<br>a<br>Bachelor<br>of<br>Science<br>degree<br>in<br>Finance<br>from<br>Bloomsburg<br>University<br>of<br>Pennsylvania<br>..<br>•<br>Thomas<br>L<br>..<br>Rudy,<br>Jr<br>..<br>-<br>Executive<br>Vice<br>President,<br>Chief<br>Delivery<br>Officer<br>and<br>Region<br>President<br>of<br>the<br>Bank<br>since<br>February<br>2021<br>;<br>formerly<br>Executive<br>Vice<br>President<br>and<br>Director<br>of<br>Branch<br>Delivery<br>of<br>the<br>Bank<br>since<br>February<br>2004<br>;<br>President<br>of<br>C&N<br>Financial<br>Services<br>Corporation<br>since<br>January<br>2000<br>;<br>President<br>of<br>Bucktail<br>Life<br>Insurance<br>Company<br>since<br>May<br>2018<br>..<br>Mr<br>..<br>Rudy<br>received<br>a<br>Bachelor<br>of<br>Science<br>degree<br>in<br>Finance<br>from<br>The<br>Pennsylvania<br>State<br>University<br>and<br>is<br>a<br>graduate<br>of<br>the<br>ABA<br>Graduate<br>School<br>of<br>Banking<br>at<br>the<br>Wharton<br>School,<br>University<br>of<br>Pennsylvania<br>..<br>34<br>Executive Officer Biographies
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•<br>Blair<br>Rush<br>-<br>Executive<br>Vice<br>President<br>and<br>Southeast<br>Region<br>President<br>of<br>the<br>Bank<br>since<br>February<br>2021<br>;<br>formerly<br>Southeast<br>Region<br>President<br>of<br>the<br>Bank<br>since<br>July<br>2020<br>with<br>the<br>acquisition<br>of<br>Covenant<br>Bank<br>..<br>Prior<br>to<br>his<br>employment<br>with<br>C&N,<br>Mr<br>..<br>Rush<br>most<br>recently<br>served<br>as<br>President<br>&<br>Chief<br>Operating<br>Officer<br>of<br>Covenant<br>Bank<br>since<br>April<br>2016<br>..<br>Prior<br>to<br>this<br>time,<br>he<br>was<br>the<br>Eastern<br>Region<br>President<br>with<br>National<br>Penn<br>Bank<br>..<br>He<br>joined<br>National<br>Penn<br>through<br>their<br>acquisition<br>of<br>FirstService<br>Bank<br>in<br>February<br>2003<br>,<br>where<br>he<br>was<br>an<br>Executive<br>Vice<br>President<br>and<br>was<br>one<br>of<br>four<br>original<br>officers<br>of<br>the<br>de<br>novo<br>FirstService<br>Bank<br>..<br>Prior<br>to<br>FirstService<br>Bank,<br>Blair<br>was<br>a<br>Vice<br>President<br>with<br>CoreStates<br>and<br>Bucks<br>County<br>Bank<br>where<br>he<br>started<br>his<br>forty<br>-<br>year<br>banking<br>career<br>..<br>Blair<br>is<br>a<br>graduate<br>of<br>Delaware<br>Valley<br>College<br>with<br>a<br>Bachelor<br>of<br>Science<br>degree<br>in<br>Business<br>Administration<br>and<br>the<br>Pennsylvania<br>Bankers<br>Association’s<br>Central<br>Atlantic<br>Advanced<br>School<br>of<br>Banking<br>..<br>•<br>Tracy<br>Watkins<br>-<br>Ms<br>..<br>Watkins<br>has<br>served<br>as<br>Executive<br>Vice<br>President<br>and<br>Chief<br>Human<br>Resources<br>Officer<br>of<br>the<br>Bank<br>since<br>February<br>2021<br>..<br>Executive<br>Vice<br>President<br>and<br>Director<br>of<br>Human<br>Resources<br>of<br>the<br>Bank<br>since<br>January<br>2018<br>;<br>formerly<br>Vice<br>President<br>and<br>Director<br>of<br>Human<br>Resources<br>of<br>the<br>Bank<br>since<br>2010<br>,<br>and<br>HRIS<br>(Human<br>Resources<br>Information<br>System)<br>&<br>Employee<br>Relations<br>Manager<br>since<br>2005<br>after<br>joining<br>Citizens<br>&<br>Northern<br>Bank<br>in<br>2003<br>..<br>Ms<br>..<br>Watkins<br>holds<br>a<br>B<br>..<br>S<br>..<br>in<br>English/Secondary<br>Education<br>from<br>Juniata<br>College,<br>a<br>Certificate<br>from<br>The<br>Institute<br>for<br>Paralegal<br>Training<br>in<br>Philadelphia,<br>PA<br>and<br>is<br>a<br>Graduate<br>of<br>the<br>PBA<br>Advanced<br>School<br>of<br>Banking<br>and<br>The<br>Graduate<br>School<br>of<br>Banking<br>Human<br>Resource<br>Management<br>School<br>as<br>well<br>as<br>being<br>a<br>Certified<br>Employee<br>Benefit<br>Specialist<br>(CEBS<br>–<br>RPA,<br>GBA)<br>and<br>Senior<br>Professional<br>in<br>Human<br>Resources<br>(SPHR)<br>..<br>35<br>Executive Officer Biographies
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36<br>Consolidated Historical<br>Balance Sheet<br>Source: Company Documents<br>At Year Ended<br>At Quarter Ended<br>2019Y<br>2020Y<br>2021Y<br>2022Q1<br>2022Q2<br>2022Q3<br><br>Assets ($000)<br>Total Cash and Cash Due from Banks<br> 35,202<br> 101,857<br> 104,948<br> 114,346<br> 69,187<br> 64,044<br>Available for Sale Debt Securities<br> 346,723<br> 349,332<br> 517,679<br> 532,913<br> 526,837<br> 487,980<br>Total Cash & Securities<br> 381,925<br> 451,189<br> 622,627<br> 647,259<br> 596,024<br> 552,024<br><br>Gross Loans Held for Investment<br> 1,182,222<br> 1,644,209<br> 1,564,849<br> 1,538,190<br> 1,657,604<br> 1,690,246<br>Loan Loss Reserve<br> (9,836)<br> (11,385)<br> (13,537)<br> (14,271)<br> (14,547)<br> (16,170)<br>Total Net Loans<br> 1,172,386<br> 1,632,824<br> 1,551,312<br> 1,523,919<br> 1,643,057<br> 1,674,076<br>OREO<br> 2,886<br> 1,338<br> 684<br> 531<br> 505<br> 454<br>Total Servicing Rights<br> 1,277<br> 1,689<br> 2,329<br> 2,429<br> 2,640<br> 2,649<br>Bank Premises and Equipment, Net<br> 17,170<br> 21,526<br> 20,683<br> 21,169<br> 21,829<br> 21,881<br>Bank-owned Life Insurance<br> 18,641<br> 30,096<br> 30,669<br> 30,804<br> 30,941<br> 31,074<br>Goodwill and Core Deposit Intangible, Net<br> 28,388<br> 56,356<br> 55,821<br> 55,711<br> 55,602<br> 55,492<br>Total Other Assets<br> 31,472<br> 44,082<br> 43,523<br> 48,549<br> 60,120<br> 62,530<br>Total Assets<br> 1,654,145<br> 2,239,100<br> 2,327,648<br> 2,330,371<br> 2,410,718<br> 2,400,180<br> 3<br> 3<br> 3<br><br>Liabilities ($000)<br>Non-Interest Bearing<br> 285,904<br> 465,332<br> 521,206<br> 552,255<br> 552,767<br> 557,769<br>Interest Bearing<br> 966,756<br> 1,355,137<br> 1,403,854<br> 1,408,697<br> 1,411,503<br> 1,481,826<br>Total Deposits<br> 1,252,660<br> 1,820,469<br> 1,925,060<br> 1,960,952<br> 1,964,270<br> 2,039,595<br>FHLB Borrowings<br> 136,419<br> 72,674<br> 28,042<br> 20,581<br> 125,291<br> 55,463<br>Senior and Subordinated Debt<br> 6,500<br> 16,553<br> 47,710<br> 47,748<br> 39,286<br> 39,329<br>Total Other Liabilities<br> 14,114<br> 29,648<br> 25,431<br> 24,882<br> 23,252<br> 27,004<br>Total Liabilities<br> 1,409,693<br> 1,939,344<br> 2,026,243<br> 2,054,163<br> 2,152,099<br> 2,161,391<br><br>Equity ($000)<br>Equity, Excluding AOCI<br>(1)<br> 240,761<br> 287,961<br> 296,379<br> 296,386<br> 294,621<br> 295,258<br>AOCI<br>(1)<br> 3,691<br> 11,795<br> 5,026<br> (20,178)<br> (36,002)<br> (56,469)<br>Total Equity<br> 244,452<br> 299,756<br> 301,405<br> 276,208<br> 258,619<br> 238,789<br><br>Total Liabilities and Equity<br> 1,654,145<br> 2,239,100<br> 2,327,648<br> 2,330,371<br> 2,410,718<br> 2,400,180<br>(1) Accumulated Other Comprehensive Income (Loss)
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37<br>Consolidated Historical<br>Income Statement<br>Source: Company Documents<br>For the Year Ended,<br>Nine Months Ended<br>2019Y<br>2020Y<br>2021Y<br>September 30, 2022<br><br>Net Interest Income<br>54,488<br>67,565<br>77,939<br>60,836<br><br>Provision for Loan Losses<br>849<br>3,913<br>3,661<br>4,993<br><br>Trust Revenue<br>6,106<br>6,321<br>7,234<br>5,245<br>Brokerage and Insurance Revenue<br>1,433<br>1,486<br>1,860<br>1,784<br>Service Charge on Deposit Accounts<br>5,690<br>4,231<br>4,633<br>3,662<br>Interchange Revenue from Debit Card Transactions<br>2,754<br>3,094<br> 3,855<br>3,050<br>Net Gains from Sales of Loans<br>924<br>5,403<br>3,428<br>733<br>Loan Servicing Fees, Net<br>100<br>(61)<br>694<br>757<br>Increase in Cash Surrender Value of Life Insurance<br>402<br>515<br>573<br>405<br>Other Noninterest Income<br>1,875<br>3,355<br>3,580<br>2,666<br>Total Noninterest Income<br>19,284<br>24,344<br>25,857<br>18,302<br><br>Compensation & Benefits<br>26,481<br>33,062<br>37,603<br>31,698<br>Total Noninterest Expense, Excluding Loss on Prepayment of<br>Borrowings and Merger-Related Expenses<br>45,438<br>55,609<br>62,472<br>51,368<br>Realized Gain on Securities<br> 23<br> 169<br> 24<br> 21<br>Loss on Prepayment of Borrowings<br> -<br> 1,636<br> -<br> -<br>Merger-Related Expenses<br> 4,099<br> 7,708<br> -<br> -<br><br>Net Income before Taxes<br>23,409<br>23,212<br>37,687<br>22,798<br>Provision for Taxes<br>3,905<br>3,990<br>7,133<br>3,959<br>Net Income<br>19,504<br>19,222<br>30,554<br>18,839
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38<br>Net Interest Margin Trend Details<br>Source: Company Documents<br>Net Interest Margin Trends<br>(Dollars in Thousands)<br>3 Months<br>3 Months<br>3 Months<br>3 Months<br>Ended<br>Rate of<br>Ended<br>Rate of<br>Ended<br>Rate of<br>Ended<br>Rate of<br>12/31/2021<br>12/31/2021<br>Return/<br>3/31/2022<br>3/31/2022<br>Return/<br>6/30/2022<br>6/30/2022<br>Return/<br>9/30/2022<br>9/30/2022<br>Return/<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Average total earning assets and net interest<br> income under U.S. GAAP<br>$2,175,754<br>$19,716<br>3.60%<br>$2,168,594<br>$20,332<br>3.80%<br>$2,210,210<br>$19,625<br>3.56%<br>$2,277,580<br>$20,879<br>3.64%<br>Add: Fully taxable-equivalent (FTE) adjustment on<br> tax-exempt securities<br>179<br>183<br>191<br>179<br>Add: Fully taxable-equivalent (FTE) adjustment on<br> tax-exempt loans<br>123<br>119<br>121<br>130<br>Net Interest Margin, FTE<br>2,175,754<br>20,018<br>3.65%<br>2,168,594<br>20,634<br>3.86%<br>2,210,210<br>19,937<br>3.62%<br>2,277,580<br>21,188<br>3.69%<br>Less; Interest and fees on PPP loans<br>40,022<br>1,644<br>18,849<br>575<br>9,272<br>206<br>4,695<br>118<br>Net Interest Margin, Excluding PPP<br>2,135,732<br>18,374<br>3.41%<br>2,149,745<br>20,059<br>3.78%<br>2,200,938<br>19,731<br>3.60%<br>2,272,885<br>21,070<br>3.68%<br>Less: Purchase Accounting Adjustments (PAA):<br> PAA on loans<br>(4,074)<br>433<br>(3,836)<br>1,703<br>(3,525)<br>412<br>(3,552)<br>486<br> PAA on time deposits<br>76<br>60<br>39<br>33<br> PAA on borrowed funds<br>114<br>81<br>55<br>54<br> PAA on subordinated debt<br>4<br>4<br>4<br>0<br>Total PAA<br>(4,074)<br>627<br>(3,836)<br>1,848<br>(3,525)<br>510<br>(3,552)<br>573<br>Net Interest Margin, Excluding PPP and PPA<br> (Non-GAAP)<br>$2,139,806<br>$17,747<br>3.29%<br>$2,153,581<br>$18,211<br>3.43%<br>$2,204,463<br>$19,221<br>3.50%<br>$2,276,437<br>$20,497<br>3.57%<br>Summary:<br>Net Interest Margin, Excluding PPP and PPA<br> (Non-GAAP)<br>3.29%<br>3.43%<br>3.50%<br>3.57%<br>Marginal Impact of PAA<br>0.12%<br>0.36%<br>0.10%<br>0.11%<br>Marginal Impact of PPP<br>0.24%<br>0.07%<br>0.02%<br>0.01%<br> Total Net Interest Margin, FTE<br>3.65%<br>3.86%<br>3.62%<br>3.69%
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39<br>Average Loan Yield and Deposit Cost<br>Details<br>Source: Company Documents<br>Average Loan Yield and Deposit Cost<br>Reconciliation of US GAAP to Non-GAAP Presentation<br>(Dollars in Thousands)<br>3 Months<br>3 Months<br>3 Months<br>3 Months<br>Ended<br>Rate of<br>Ended<br>Rate of<br>Ended<br>Rate of<br>Ended<br>Rate of<br>12/31/2021<br>12/31/2021<br>Return/<br>3/31/2022<br>3/31/2022<br>Return/<br>6/30/2022<br>6/30/2022<br>Return/<br>9/30/2022<br>9/30/2022<br>Return/<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Interest and fees on loans under U.S. GAAP<br>$1,554,393<br>$18,924<br>4.83%<br>$1,547,861<br>$19,003<br>4.98%<br>$1,588,884<br>$18,394<br>4.64%<br>$1,674,270<br>$20,590<br>4.88%<br>Add: Fully taxable-equivalent (FTE) adjustment on<br> tax-exempt loans<br>123<br>119<br>121<br>130<br>Total Interest and fees on loans, FTE equivalent<br>1,554,393<br>19,047<br>4.86%<br>1,547,861<br>19,122<br>5.01%<br>1,588,884<br>18,515<br>4.67%<br>1,674,270<br>20,720<br>4.91%<br>Less; Interest and fees on PPP loans<br>40,022<br>1,644<br>18,849<br>575<br>9,272<br>206<br>4,695<br>118<br>Purchase accounting-related adjustments (PAA):<br> Yield adjustment on non-impaired loans<br>(461)<br>(264)<br>(718)<br>(248)<br>(907)<br>19<br>(889)<br>5<br> Credit adjustment on non-impaired loans<br>(3,613)<br>501<br>(3,118)<br>553<br>(2,618)<br>379<br>(2,663)<br>308<br> Income from repayments received on<br> purchased credit impaired (PCI) loans in<br> excess of prior recorded investment<br>196<br>1,398<br>14<br>173<br> Total PAA<br>(4,074)<br>433<br>(3,836)<br>1,703<br>(3,525)<br>412<br>(3,552)<br>486<br>Total interest and fees on loans excluding<br> PPP loans and PPA (non-GAAP)<br>$1,518,445<br>$16,970<br>4.43%<br>$1,532,848<br>$16,844<br>4.46%<br>$1,583,137<br>$17,897<br>4.53%<br>$1,673,127<br>$20,116<br>4.77%<br>Total interest-bearing deposits<br>$1,409,409<br>$980<br>0.28%<br>$1,402,604<br>$910<br>0.26%<br>$1,405,984<br>$1,130<br>0.32%<br>$1,441,467<br>$1,972<br>0.54%<br>Noninterest-bearing Demand deposits<br>523,817<br>0<br>529,077<br>0<br>557,007<br>0<br>557,116<br>0<br> Total deposits<br>1,933,226<br>980<br>0.20%<br>1,931,681<br>910<br>0.19%<br>1,962,991<br>1,130<br>0.23%<br>1,998,583<br>1,972<br>0.39%<br>PAA on time deposits<br>217<br>(76)<br>149<br>(60)<br>102<br>(39)<br>85<br>(33)<br>Total deposits excluding PAA (Non-GAAP)<br>$1,933,009<br>$1,056<br>0.22%<br>$1,931,532<br>$970<br>0.20%<br>$1,962,889<br>$1,169<br>0.24%<br>$1,998,498<br>$2,005<br>0.40%
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40<br>Deposit Beta Details<br>Source: Company Documents<br>Deposit Beta Analysis<br>Reconciliation of US GAAP to Non-GAAP Presentation<br>(Dollars in Thousands)<br>3 Months<br>3 Months<br>3 Months<br>3 Months<br>Ended<br>Rate of<br>Ended<br>Rate of<br>Ended<br>Rate of<br>Ended<br>Rate of<br>12/31/2021<br>12/31/2021<br>Return/<br>3/31/2022<br>3/31/2022<br>Return/<br>6/30/2022<br>6/30/2022<br>Return/<br>9/30/2022<br>9/30/2022<br>Return/<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Average<br>Quarterly<br>Cost of<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Balance<br>Inc/Exp<br>Funds %<br>Total interest-bearing deposits<br>$1,409,409<br>$980<br>0.28%<br>$1,402,604<br>$910<br>0.26%<br>$1,405,984<br>$1,130<br>0.32%<br>$1,441,467<br>$1,972<br>0.54%<br>PAA on time deposits<br>217<br>(76)<br>149<br>(60)<br>102<br>(39)<br>85<br>(33)<br>Total interest-bearing deposits excluding<br> PAA (non-GAAP)<br>1,409,192<br>1,056<br>0.30%<br>1,402,455<br>970<br>0.28%<br>1,405,882<br>1,169<br>0.33%<br>1,441,382<br>2,005<br>0.55%<br>Noninterest-bearing Demand deposits<br>523,817<br>0<br>529,077<br>0<br>557,007<br>0<br>557,116<br>0<br>Total deposits excluding PAA (Non-GAAP)<br>$1,933,009<br>$1,056<br>0.22%<br>$1,931,532<br>$970<br>0.20%<br>$1,962,889<br>$1,169<br>0.24%<br>$1,998,498<br>$2,005<br>0.40%<br>Cumulative Increase (Decrease) in Average<br> Cost:<br> Total Interest-bearing Deposits (1)<br>-0.02%<br>0.05%<br>0.27%<br> Total Deposits (1)<br>-0.02%<br>0.04%<br>0.20%<br>Deposit Beta (1) / (2):<br> Total Interest-bearing Deposits<br>4%<br>10%<br> Total Deposits<br>3%<br>7%<br>Fed Funds Target Rate - High End of Range<br> as of End of the Period<br>0.25%<br>0.50%<br>1.75%<br>3.25%<br>Cumulative Increase in Fed Funds Rate<br> as Compared to 3/31/2022 (2)<br>1.25%<br>2.75%
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Investment Portfolio Characteristics as of<br>September 30, 2022<br>41<br>Securities Portfolio<br>1)<br>Municipal portfolio credit quality information is summarized based on amortized cost values.<br>Ratings are assigned to each security based on the lowest enhanced or underlying rating<br>from Moody’s, S&P or Fitch.<br>Source: Company Documents; Financial data as of September 30, 2022<br>•<br>Book Value: $559.8 Million<br>•<br>Market Value $488.0 Million<br>•<br>100% of portfolio is investment grade<br>Composite Quality (%)<br>Current<br>AAA<br>19%<br>Prerefunded<br>5%<br>AA<br>69%<br>A<br>7%<br>NR<br>Municipal Portfolio Characteristics as of<br>September 30, 2022<br>1<br>Municipal<br>38%<br>Agency MBS<br>-<br>Residential<br>29%<br>Agency MBS<br>Commercial<br>16%<br>US Treasuries<br>7%<br>US<br>Government<br>Agencies<br>4%<br>Private Label<br>Commercial<br>MBS<br>1%<br>Bank Holding<br>Company<br>Debt<br>Securities<br>5%
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42<br>Securities Portfolio, continued<br>The composition of the available<br>-<br>for<br>-<br>sale debt securities portfolio at September 30, 2022, December 31, 2021 and<br>December 31, 2020 is as follows:<br>The<br>unrealized<br>decrease<br>in<br>fair<br>value<br>of<br>the<br>portfolio<br>in<br>the<br>first<br>nine<br>months<br>of<br>2022<br>and<br>in<br>2021<br>resulted<br>from<br>an<br>increase<br>in<br>interest<br>rates<br>..<br>M<br>anagement<br>reviewed<br>the<br>Corporation’s<br>holdings<br>as<br>of<br>September<br>30<br>,<br>2022<br>and<br>concluded<br>there<br>were<br>no<br>credit<br>-<br>related<br>declines<br>in<br>fair<br>value<br>and<br>that<br>the<br>unrealized<br>losses<br>on<br>all<br>of<br>the<br>securities<br>in<br>an<br>unrealized<br>loss<br>position<br>are<br>considered<br>temporary<br>..<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>(Dollars In Thousands)<br><br><br>September 30, 2022<br><br><br>December 31, 2021<br><br><br><br>December 31, 2020<br><br><br><br><br>Amortized<br><br><br>Fair<br><br><br>Amortized<br><br><br>Fair<br><br><br><br>Amortized<br><br><br>Fair<br><br><br><br><br><br>Cost<br><br><br><br>Value<br><br><br><br>Cost<br><br><br><br>Value<br><br><br>Cost<br><br><br><br>Value<br><br><br>Obligations of the U.S. Treasury<br><br><br>$<br><br><br>35,155<br><br><br>$<br><br><br>31,599<br><br><br>$<br><br><br>25,058<br><br><br>$<br><br><br>24,912<br><br><br>$<br><br><br>12,184<br><br><br>$<br><br><br>12,182<br><br><br>Obligations of U.S. Government agencies<br><br><br><br><br>23,939<br><br><br><br><br>21,389<br><br><br><br><br>23,936<br><br><br><br><br>24,091<br><br><br><br><br>25,349<br><br><br><br><br>26,344<br><br><br>Bank holding company debt securities<br><br><br><br><br>28,944<br><br><br><br><br>25,432<br><br><br><br>18,000<br><br><br><br>17,987<br><br><br><br>0<br><br><br><br>0<br><br><br>Obligations of states and political subdivisions:<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Tax<br>-<br>exempt<br><br><br><br><br><br>146,847<br><br><br><br><br><br>126,710<br><br><br><br><br><br>143,427<br><br><br><br><br><br>148,028<br><br><br><br><br><br>116,427<br><br><br><br><br><br>122,401<br><br><br>Taxable<br><br><br><br><br><br>69,902<br><br><br><br><br><br>58,317<br><br><br><br><br><br>72,182<br><br><br><br><br><br>72,765<br><br><br><br><br><br>45,230<br><br><br><br><br><br>47,452<br><br><br>Mortgage<br>-<br>backed securities issued or guaranteed by U.S.<br>Government agencies or sponsored agencies:<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Residential pass<br>-<br>through securities<br><br><br><br><br><br>116,833<br><br><br><br><br><br>102,739<br><br><br><br><br><br>98,048<br><br><br><br><br><br>98,181<br><br><br><br><br><br>36,853<br><br><br><br><br><br>38,176<br><br><br>Residential collateralized mortgage obligations<br><br><br><br><br><br>44,075<br><br><br><br><br><br>39,632<br><br><br><br><br><br>44,015<br><br><br><br><br><br>44,247<br><br><br><br><br><br>56,048<br><br><br><br><br><br>57,467<br><br><br>Commercial mortgage<br>-<br>backed securities<br><br><br><br><br><br>89,349<br><br><br><br><br><br>77,383<br><br><br><br><br><br>86,926<br><br><br><br><br><br>87,468<br><br><br><br><br><br>42,461<br><br><br><br><br><br>45,310<br><br><br>Private label commercial mortgage<br>-<br>backed securities<br><br><br><br><br>4,793<br><br><br><br><br>4,779<br><br><br><br>0<br><br><br><br>0<br><br><br><br>0<br><br><br><br>0<br><br><br>Total Available<br>-<br>for<br>-<br>Sale Debt Securities<br><br><br>$<br><br><br>559,837<br><br><br>$<br><br><br>487,980<br><br><br>$<br><br><br>511,592<br><br><br>$<br><br><br>517,679<br><br><br>$<br><br><br>334,552<br><br><br>$<br><br><br>349,332<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Aggregate Unrealized (Loss) Gain<br><br><br><br><br><br>$<br><br><br>(71,857)<br><br><br><br><br><br>$<br><br><br>6,087<br><br><br><br><br><br>$<br><br><br>14,780<br><br><br>Aggregate Unrealized (Loss) Gain as a % of Amortized<br>Cost<br><br><br><br><br><br><br><br>(12.8)<br><br>%<br><br><br><br><br><br><br>1.2<br><br>%<br><br><br><br><br><br><br>4.4<br><br>%<br><br>Market Yield on 5<br>-<br>Year U.S. Treasury Obligations (a)<br><br><br><br><br><br><br>4.06<br><br>%<br><br><br><br><br><br>1.26<br><br>%<br><br><br><br><br><br>0.36<br><br>%<br><br><br>(a) Source: Treasury.gov (Daily Treasury Par Yield Curve Rates)
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43<br>Asset<br>-<br>sensitive Interest Rate Risk Profile<br>Citizens<br>&<br>Northern<br>uses<br>a<br>simulation<br>model<br>to<br>calculate<br>the<br>potential<br>effects<br>of<br>interest<br>rate<br>fluctuations<br>on<br>net<br>interest<br>income<br>and<br>the<br>economic<br>value<br>of<br>portfolio<br>equity<br>..<br>The<br>projected<br>results<br>include<br>the<br>impact<br>of<br>estimates,<br>at<br>each<br>level<br>of<br>interest<br>rate<br>change,<br>regarding<br>cash<br>flows<br>from<br>principal<br>repayments<br>on<br>loans<br>and<br>mortgage<br>-<br>backed<br>securities<br>and<br>call<br>activity<br>on<br>other<br>investment<br>securities<br>..<br>Actual<br>results<br>could<br>vary<br>significantly<br>from<br>these<br>estimates,<br>which<br>could<br>result<br>in<br>significant<br>differences<br>in<br>the<br>calculations<br>of<br>projected<br>changes<br>in<br>net<br>interest<br>income<br>and<br>economic<br>value<br>of<br>equity<br>..<br>As shown in the table below, C&N models as asset<br>-<br>sensitive.<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>September 30, 2022 Data<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>(In Thousands)<br><br><br>Period Ending September 30, 2023<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Basis Point<br><br><br><br>Interest<br><br><br><br>Interest<br><br><br><br>Net Interest<br><br><br>NII<br><br><br><br>NII<br><br><br>Change in Rates<br><br><br><br>Income<br><br><br><br>Expense<br><br><br><br>Income (NII)<br><br><br>% Change<br><br><br><br>Risk Limit<br><br><br>+400<br><br><br>$<br><br><br>122,856<br><br><br>$<br><br><br>25,997<br><br><br>$<br><br><br>96,859<br><br><br><br>11.9<br><br>%<br><br><br><br>25.0<br><br>%<br><br>+300<br><br><br><br><br>116,812<br><br><br><br><br>22,596<br><br><br><br><br>94,216<br><br><br><br>8.9<br><br>%<br><br><br><br>20.0<br><br>%<br><br>+200<br><br><br><br><br>111,011<br><br><br><br><br>19,194<br><br><br><br><br>91,817<br><br><br><br>6.1<br><br>%<br><br><br><br>15.0<br><br>%<br><br>+100<br><br><br><br><br>104,967<br><br><br><br><br>15,792<br><br><br><br><br>89,175<br><br><br><br>3.1<br><br>%<br><br><br><br>10.0<br><br>%<br><br>0<br><br><br><br><br>98,912<br><br><br><br><br>12,390<br><br><br><br><br>86,522<br><br><br>0.0<br><br>%<br><br><br>0.0<br><br>%<br><br>-<br>100<br><br><br><br><br>92,780<br><br><br><br><br>9,709<br><br><br><br><br>83,071<br><br><br><br>(4.0)<br><br>%<br><br><br><br>10.0<br><br>%<br><br>-<br>200<br><br><br><br><br>86,905<br><br><br><br><br>8,387<br><br><br><br><br>78,518<br><br><br><br>(9.3)<br><br>%<br><br><br><br>15.0<br><br>%<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Economic Value of Equity at September 30, 2022<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br>Present<br><br><br><br>Present<br><br><br><br>Present<br><br><br><br><br><br><br><br>Basis Point<br><br><br><br>Value<br><br><br><br>Value<br><br><br><br>Value<br><br><br><br><br><br><br><br>Change in Rates<br><br><br><br>Equity<br><br><br><br>% Change<br><br><br><br>Risk Limit<br><br><br><br><br><br><br><br>+400<br><br><br>$<br><br><br>496,614<br><br><br><br><br>4.1<br><br>%<br><br><br><br>50.0<br><br>%<br><br><br><br><br><br><br>+300<br><br><br><br><br>491,836<br><br><br><br><br>3.1<br><br>%<br><br><br><br>45.0<br><br>%<br><br><br><br><br><br><br>+200<br><br><br><br><br>490,243<br><br><br><br><br>2.8<br><br>%<br><br><br><br>35.0<br><br>%<br><br><br><br><br><br><br>+100<br><br><br><br><br>483,666<br><br><br><br><br>1.4<br><br>%<br><br><br><br>25.0<br><br>%<br><br><br><br><br><br><br>0<br><br><br><br><br>477,023<br><br><br><br>0.0<br><br>%<br><br><br>0.0<br><br>%<br><br><br><br><br><br><br>-<br>100<br><br><br><br><br>465,772<br><br><br><br><br>(2.4)<br><br>%<br><br><br><br>25.0<br><br>%<br><br><br><br><br><br><br>-<br>200<br><br><br><br><br>449,662<br><br><br><br><br>(5.7)<br><br>%<br><br><br><br>35.0<br><br>%
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44<br>Reconciliation of GAAP to<br>Non<br>-<br>GAAP Measure<br>(1)<br>Income tax has been allocated based on a marginal income tax rate of 21%. The effect on the income tax provision is adjusted<br>fo<br>r the estimated nondeductible<br>portion of merger expenses.<br>(2)<br>Annualized returns on tax<br>-<br>exempt securities and loans are presented on a fully taxable<br>-<br>equivalent basis using a 21% marginal inc<br>ome tax rate.<br>Note: ROAA, ROAE and ROATCE shown on an annualized basis<br>Source: Company Documents<br>For the Year Ended December 31,<br>Nine<br>Months<br>Ended<br>Three Months Ended<br>($000s)<br>2018<br>2019<br>2020<br>2021<br>9/30/2022<br>12/31/2021<br>3/31/2022<br>6/30/2022<br>9/30/2022<br>Total Noninterest Expense<br>$39,486<br>$49,537<br>$64,953<br>$62,472<br>$51,368<br>$16,018<br>$16,886<br>$17,039<br>$17,443<br>Less: Merger-Related Expenses<br>$328<br>$4,099<br>$7,708<br>$0<br>$0<br>$0<br>$0<br>$0<br>$0<br>Less: Loss on Prepayment of Borrowings<br>$0<br>$0<br>$1,636<br>$0<br>$0<br>$0<br>$0<br>$0<br>$0<br>Operating Expense<br>$39,158<br>$45,438<br>$55,609<br>$62,472<br>$51,368<br>$16,018<br>$16,886<br>$17,039<br>$17,443<br>Total Net Interest Income<br>(2)<br>$47,004<br>$55,532<br>$68,545<br>$79,074<br>$61,759<br>$20,018<br>$20,634<br>$19,937<br>$21,188<br>Plus: Noninterest Income<br>$18,597<br>$19,284<br>$24,344<br>$25,857<br>$18,302<br>$6,416<br>$5,821<br>$6,830<br>$5,651<br>Operating Revenue<br>$65,601<br>$74,816<br>$92,889<br>$104,931<br>$80,061<br>$26,434<br>$26,455<br>$26,767<br>$26,839<br>Efficiency Ratio<br>59.69%<br>60.73%<br>59.87%<br>59.54%<br>64.16%<br>60.60%<br>63.83%<br>63.66%<br>64.99%<br>For the Year Ended December 31,<br>Nine<br>Months<br>Ended<br>Three Months Ended<br>($000s)<br>2018<br>2019<br>2020<br>2021<br>9/30/2022<br>12/31/2021<br>3/31/2022<br>6/30/2022<br>9/30/2022<br>Income Before Taxes (GAAP)<br>$26,263<br>$23,409<br>$23,212<br>$37,687<br>$22,798<br>$8,985<br>$8,378<br>$9,107<br>$5,313<br>Less: Income Tax Provision<br>($4,250)<br>($3,905)<br>($3,990)<br>($7,133)<br>($3,959)<br>($1,677)<br>($1,483)<br>($1,618)<br>($858)<br>Net Income (GAAP)<br>$22,013<br>$19,504<br>$19,222<br>$30,554<br>$18,839<br>$7,308<br>$6,895<br>$7,489<br>$4,455<br>GAAP Diluted Earnings Per Share<br>$1.79<br>$1.46<br>$1.30<br>$1.92<br>$1.21<br>$0.46<br>$0.44<br>$0.48<br>$0.29<br>GAAP Return on Average Assets (ROAA)<br>1.72%<br>1.27%<br>0.96%<br>1.32%<br>1.06%<br>1.25%<br>1.19%<br>1.28%<br>0.74%<br>GAAP Return on Average Equity (ROAE)<br>11.72%<br>8.50%<br>7.03%<br>10.14%<br>9.20%<br>9.73%<br>9.37%<br>11.29%<br>6.85%<br>Return on Average Tangible Common Equity (ROATCE)<br>12.51%<br>9.56%<br>8.36%<br>12.46%<br>11.55%<br>11.95%<br>11.56%<br>14.29%<br>8.71%<br>Plus: Merger Related Expenses<br>(1)<br>$0<br>$3,270<br>$6,134<br>$0<br>$0<br>$0<br>$0<br>$0<br>$0<br>Plus: Loss on Prepayment of Borrowings<br>(1)<br>$0<br>$0<br>$1,292<br>$0<br>$0<br>$0<br>$0<br>$0<br>$0<br>Less: Gain on Restricted Equity Security<br>(1)<br>($1,834)<br>$0<br>$0<br>$0<br>$0<br>$0<br>$0<br>$0<br>$0<br>Net Loss (Gain) on Available-for-Sale Debt Securities<br>(1)<br>$228<br>($18)<br>($134)<br>($19)<br>($21)<br>$1<br>($2)<br>$1<br>($20)<br>Core Net Income (Non-GAAP)<br>$20,407<br>$22,756<br>$26,514<br>$30,535<br>$18,818<br>$7,309<br>$6,893<br>$7,490<br>$4,435<br>Core diluted earnings per common share<br>$1.66<br>$1.70<br>$1.79<br>$1.92<br>$1.20<br>$0.46<br>$0.44<br>$0.48<br>$0.29<br>Core net income, as calculated above<br>$20,407<br>$22,756<br>$26,514<br>$30,535<br>$18,818<br>$7,309<br>$6,893<br>$7,490<br>$4,435<br>Average Assets<br>1,276,140<br>1,540,469<br>2,009,825<br>2,319,234<br>2,359,863<br>2,345,060<br>2,325,486<br>2,345,944<br>2,407,262<br>Average Equity<br>187,895<br>229,446<br>273,351<br>301,226<br>273,129<br>300,490<br>294,254<br>265,322<br>260,186<br>Average Intangibles<br>11,952<br>25,531<br>43,330<br>56,086<br>55,655<br>55,887<br>55,765<br>55,656<br>55,547<br>Core ROAA<br>1.60%<br>1.48%<br>1.32%<br>1.32%<br>1.06%<br>1.25%<br>1.19%<br>1.28%<br>0.74%<br>Core ROAE<br>10.86%<br>9.92%<br>9.70%<br>10.14%<br>9.19%<br>9.73%<br>9.37%<br>11.29%<br>6.82%<br>Core ROATCE<br>11.60%<br>11.16%<br>11.53%<br>12.46%<br>11.54%<br>11.95%<br>11.56%<br>14.29%<br>8.67%
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45<br>Reconciliation of GAAP to<br>Non<br>-<br>GAAP Measure<br>Source: Company documents; Financial data as of September 30, 2022<br>December 31,<br>September 30,<br>($000s)<br>2018<br>2019<br>2020<br>2021<br>2022<br>Nonperforming Assets:<br> Purchased Credit Impaired Loans<br>$0<br>$441<br>$6,841<br>$6,558<br>$3,783<br> Other Nonaccrual Loans<br>13,113<br>8,777<br>14,575<br>12,441<br>13,176<br> Total Nonaccrual Loans<br>13,113<br>9,218<br>21,416<br>18,999<br>16,959<br> Total Loans Past due 90 days or More and Still Accruing<br>2,906<br>1,207<br>1,975<br>2,219<br>3,499<br> Total Nonperforming Loans<br>16,019<br>10,425<br>23,391<br>21,218<br>20,458<br> Foreclosed Assets Held for Sale (real estate)<br>1,703<br>2,886<br>1,338<br>684<br>454<br>Total Nonperforming Assets<br>$17,722<br>$13,311<br>$24,729<br>$21,902<br>$20,912<br>Total Nonperforming Assets, Excluding Purchased Credit Impaired Loans<br>$17,722<br>$12,870<br>$17,888<br>$15,344<br>$17,129<br>Total Nonperforming Loans as a % of Loans<br>1.94%<br>0.88%<br>1.42%<br>1.36%<br>1.21%<br>Total Nonperforming Assets as a % of Assets<br>1.37%<br>0.80%<br>1.10%<br>0.94%<br>0.87%<br>Total NPAs Excluding Purchased Credit Impaired Loans as a % of Assets<br>1.37%<br>0.78%<br>0.80%<br>0.66%<br>0.71%
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46<br>Reconciliation of GAAP to<br>Non<br>-<br>GAAP Measure<br>Source: Company documents; Financial data as of September 30, 2022<br>December 31,<br>($000s)<br>2018<br>2019<br>2020<br>2021<br>3/31/2022<br>6/30/2022<br>9/30/2022<br>Total Gross Loans<br>$827,563<br>$1,182,222<br>$1,644,209<br>$1,564,849<br>$1,538,190<br>$1,657,604<br>$1,690,246<br>Less: Paycheck Protection Loans (PPP)<br>$0<br>$0<br>$132,269<br>$26,864<br>$12,377<br>$6,252<br>$2,035<br>Total Loans ex. PPP<br>$827,563<br>$1,182,222<br>$1,511,940<br>$1,537,985<br>$1,525,813<br>$1,651,352<br>$1,688,211<br>Loan Loss Reserves<br>$9,309<br>$9,836<br>$11,385<br>$13,537<br>$14,271<br>$14,547<br>$16,170<br>Loan Loss Reserves / Total Gross Loans<br>1.12%<br>0.83%<br>0.69%<br>0.87%<br>0.93%<br>0.88%<br>0.96%<br>Loan Loss Reserves / Total Gross Loans ex. PPP<br>1.12%<br>0.83%<br>0.75%<br>0.88%<br>0.94%<br>0.88%<br>0.96%<br>Total Credit Discount<br>$0<br>$1,216<br>$5,979<br>$3,335<br>$2,782<br>$2,403<br>$2,095<br>Loan Loss Reserves, as shown above<br>$9,309<br>$9,836<br>$11,385<br>$13,537<br>$14,271<br>$14,547<br>$16,170<br>Plus: Total Credit Discount<br>$0<br>$1,216<br>$5,979<br>$3,335<br>$2,782<br>$2,403<br>$2,095<br>Loan Loss Reserves (incl. Credit Discount)<br>$9,309<br>$11,052<br>$17,364<br>$16,872<br>$17,053<br>$16,950<br>$18,265<br>Loan Loss Reserves (incl. Credit Discount) / Total Gross Loans<br>1.12%<br>0.93%<br>1.06%<br>1.08%<br>1.11%<br>1.02%<br>1.08%<br>Loan Loss Reserves (incl. Credit Discount) / Total Gross Loans ex. PPP<br>1.12%<br>0.93%<br>1.15%<br>1.10%<br>1.12%<br>1.03%<br>1.08%
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47<br>Reconciliation of GAAP to<br>Non<br>-<br>GAAP Measure<br>Source: Company documents; Financial data as of September 30, 2022<br>Holding Company Tangible Common Equity<br>($000)<br>12/31/2018<br>12/31/2019<br>12/31/2020<br>12/31/2021<br>3/31/2022<br>6/30/2022<br>9/30/2022<br>Stockholders' Equity (GAAP)<br>$197,368<br>$244,452<br>$299,756<br>$301,405<br>$276,208<br>$258,619<br>$238,789<br>Less: Intangible Assets<br>11,951<br>29,635<br>56,356<br>55,821<br>55,711<br>55,602<br>55,492<br>Tangible Common Equity (Non-GAAP)<br>$185,417<br>$214,817<br>$243,400<br>$245,584<br>$220,497<br>$203,017<br>$183,297<br>Total Number of Shares Outstanding<br>12,319<br>13,716<br>15,912<br>15,759<br>15,719<br>15,499<br>15,500<br>Tangible Book Value Per Share<br>$15.05<br>$15.66<br>$15.30<br>$15.58<br>$14.03<br>$13.10<br>$11.83<br>Holding Company Tangible Assets<br>($000)<br>12/31/2018<br>12/31/2019<br>12/31/2020<br>12/31/2021<br>3/31/2022<br>6/30/2022<br>9/30/2022<br>Assets (GAAP)<br>$1,290,893<br>$1,654,145<br>$2,239,100<br>$2,327,648<br>$2,330,371<br>$2,410,718<br>$2,400,180<br>Less: Intangible Assets<br>11,951<br>29,635<br>56,356<br>55,821<br>55,711<br>55,602<br>55,492<br>Tangible Assets (Non-GAAP)<br>$1,278,942<br>$1,624,510<br>$2,182,744<br>$2,271,827<br>$2,274,660<br>$2,355,116<br>$2,344,688<br>Bank Level Tangible Common Equity<br>($000)<br>12/31/2018<br>12/31/2019<br>12/31/2020<br>12/31/2021<br>3/31/2022<br>6/30/2022<br>9/30/2022<br>Total Equity Capital (GAAP)<br>$174,795<br>$228,413<br>$292,455<br>$298,797<br>$276,693<br>$264,794<br>$244,701<br>Less: Intangible Assets<br>11,951<br>29,635<br>56,464<br>55,821<br>55,711<br>55,602<br>55,492<br>Tangible Common Equity (Non-GAAP)<br>$162,844<br>$198,778<br>$235,991<br>$242,976<br>$220,982<br>$209,192<br>$189,209<br>Bank Level Tangible Assets<br>($000)<br>12/31/2018<br>12/31/2019<br>12/31/2020<br>12/31/2021<br>3/31/2022<br>6/30/2022<br>9/30/2022<br>Assets (GAAP)<br>$1,276,156<br>$1,638,285<br>$2,222,478<br>$2,311,213<br>$2,314,317<br>$2,394,714<br>$2,385,461<br>Less: Intangible Assets<br>11,951<br>29,635<br>56,464<br>55,821<br>55,711<br>55,602<br>55,492<br>Tangible Assets (Non-GAAP)<br>$1,264,205<br>$1,608,650<br>$2,166,014<br>$2,255,392<br>$2,258,606<br>$2,339,112<br>$2,329,969
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