# EDGAR Filing Document

**Accession Number:** 0000810958
**File Stem:** 0001104659-25-120335
**Filing Date:** 2025-12
**Character Count:** 97020
**Document Hash:** 1308e2d60884d5d1da60ab95b0fc161c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-120335.hdr.sgml**: 20251211

**ACCESSION NUMBER**: 0001104659-25-120335

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251001

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251211

**DATE AS OF CHANGE**: 20251211

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CITIZENS & NORTHERN CORP
- **CENTRAL INDEX KEY:** 0000810958
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 232451943
- **STATE OF INCORPORATION:** PA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-16084
- **FILM NUMBER:** 251565457

**BUSINESS ADDRESS:**
- **STREET 1:** 90-92 MAIN ST
- **CITY:** WELLSBORO
- **STATE:** PA
- **ZIP:** 16901
- **BUSINESS PHONE:** 877-838-2517

**MAIL ADDRESS:**
- **STREET 1:** 90-92 MAIN ST
- **CITY:** WELLSBORO
- **STATE:** PA
- **ZIP:** 16901

?xml version='1.0' encoding='ASCII'? Citizens & Northern Corporation_October 1, 2025

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K/A**

**(Amendement No. 1)**

**CURRENT REPORT**

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

**October 1, 2025**

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  |  | (Commission  |  | (IRS Employer |
| of incorporation) |  | File Number) |  | 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:

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

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

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

☐&nbsp;&nbsp;&nbsp;&nbsp;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. ☐

------

**Explanatory Note**

On October 1, 2025, Citizens & Northern Corporation ("C&N"), along with Susquehanna Community Financial, Inc. ("Susquehanna") announced the completion of the merger of Susquehanna with and into C&N. Susquehanna was the parent company of Susquehanna Community Bank, a commercial bank with headquarters in West Milton, Pennsylvania. Concurrent with the merger of the parent companies, Susquehanna Community Bank merged into C&N's wholly-owned subsidiary, Citizens & Northern Bank. This Form 8-K/A hereby amends the initial Report to file the audited consolidated financial statements of Susquehanna as of and for the years ended December 31, 2024 and 2023, the unaudited historical financial statements of Susquehanna as of September 30, 2025 and December 31, 2024 and for the nine-month periods ended September 30, 2025 and 2024 and the pro forma financial information required by Item 9.01 of Form 8-K.

.

**ITEM 9.01. Financial Statements and Exhibits**

(a)&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements of Business Acquired

Susquehanna's audited consolidated financial statements as of and for the years ended December 31, 2024, and 2023, including the independent auditor's report thereon, are incorporated by reference into this Report by Exhibit 99.1, and are incorporated into this item 9.01(a) by reference to Exhibit 99.1. Susquehanna's unaudited consolidated financial statements as of September 30, 2025 and December 31, 2024 and for the nine-month periods ended September 30, 2025 and 2024 are filed herewith as Exhibit 99.2 of this Report and are incorporated by reference into this item 9.01(a).

(b)&nbsp;&nbsp;&nbsp;&nbsp;Pro-Forma Financial Information

The unaudited pro forma financial information required by this Item 9.01(b) is incorporated herein by reference to Exhibit 99.3 of this Form 8-K/A.

(c)&nbsp;&nbsp;&nbsp;&nbsp;Shell company transactions

Not applicable.

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits.

---

| |
|:---|
| [Exhibit 23.1: Consent of S.R. Snodgrass, P.C. Independent Registered Accounting Firm for Susquehanna.](cznc-20251001xex23d1.htm)  |
| [Exhibit 99.1: Susquehanna's audited consolidated financial statements as of and for the years ended December 31, 2024, and 2023 (incorporated by reference to Appendex F-1 to the Form S-4/A filed by Citizens & Northern Corporation on August 4, 2025 (Registration Statement No. 333-288838).](https://www.sec.gov/Archives/edgar/data/810958/000110465925073477/tm2514179-3_s4a.htm) |
| [Exhibit 99.2: Susquehanna's unaudited consolidated financial statements for the nine-months ended September 30, 2025 and 2024.](cznc-20251001xex99d2.htm) |
| [Exhibit 99.3: Unaudited pro forma financial information.](cznc-20251001xex99d3.htm) |
| Exhibit 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.

---

| | | |
|:---|:---|:---|
|  | CITIZENS & NORTHERN CORPORATION | CITIZENS & NORTHERN CORPORATION |
| Dated: December 11, 2025 | By: | /s/ Mark A. Hughes |
|  |  | Mark A. Hughes |
|  |  | Treasurer and Chief Financial Officer |

---

## Exhibit 23.1

**EXHIBIT 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the Registration Statements Nos. 333-162279 and 333-160682 on Form S-3 and Nos. 333-150517 and 333-138398 on Form S-8 of Citizens & Northern Corporation of our report dated March 28, 2025, with respect to the consolidated balance sheets of Susquehanna Community Financial, Inc. and subsidiaries as of December 31, 2024 and 2023, and the related consolidated statements of income, comprehensive income, changes in shareholders' equity, and cash flows for the years then ended, which appears in this Form 8-KA of Citizens & Northern Corporation dated December 11, 2025.

/s/ S.R. Snodgrass, P.C.<br>

Cranberry Township, Pennsylvania

December 11, 2025

------

## Exhibit 99.2

**EXHIBIT 99.2**

SUSQUEHANNA COMMUNITY FINANCIAL, INC.

WEST MILTON, PENNSYLVANIA

SEPTEMBER 30, 2025

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SUSQUEHANNA COMMUNITY FINANCIAL, INC.

CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SEPTEMBER 30, 2025

Page

<u>Number</u>

Financial Statements

Consolidated Balance Sheet - September 30, 2025 (unaudited) and December 31, 20243

Consolidated Statement of Operations (unaudited)4

Consolidated Statement of Comprehensive Income (unaudited)5

Consolidated Statement of Changes in Stockholders' Equity (unaudited)6

Consolidated Statement of Cash Flows (unaudited)7

Notes to the Unaudited Consolidated Financial Statements8–25

------

SUSQUEHANNA COMMUNITY FINANCIAL, INC.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

---

| | | |
|:---|:---|:---|
| <br>**(In Thousands, Except Share and Per Share Data)** | **September 30,** <br>**2025** | **December 31,** <br>**2024** |
| ASSETS |  |  |
| Cash and due from banks | $6080 | $5549 |
| Available-for-sale debt securities, at fair value | 148243 | 155058 |
| Marketable equity securities, at fair value | 37 | 915 |
| Restricted investment in bank stocks, at cost | 7275 | 6210 |
| Loans, net of allowance for credit losses of $3,208 and $3,437  | 396851 | 389126 |
| Bank premises and equipment, net | 10163 | 10582 |
| Other real estate owned | 50 | 0 |
| Accrued interest receivable | 3028 | 2742 |
| Cash surrender value of life insurance | 7953 | 7815 |
| Other assets | 7702 | 9696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL ASSETS | $587382 | $587693 |
| LIABILITIES |  |  |
| &nbsp;&nbsp;Interest-bearing deposits | $470677 | $460373 |
| &nbsp;&nbsp;Noninterest-bearing deposits | 30360 | 27624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Deposits | 501037 | 487997 |
| Other borrowings | 45800 | 62200 |
| Dividends payable | 0 | 682 |
| Accrued interest payable | 1537 | 1035 |
| Other liabilities | 2621 | 2404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES | 550995 | 554318 |
| STOCKHOLDERS' EQUITY |  |  |
| Common stock, par value $1.00 per share; authorized 5,000,000 shares; |  |  |
| &nbsp;&nbsp;3,375,000 shares issued and 2,841,314 shares outstanding at September 30, 2025 and December 31, 2024 | 3375 | 3375 |
| Additional paid-in capital | 455 | 455 |
| Retained earnings | 53110 | 55234 |
| Accumulated other comprehensive loss | (13672) | (18808) |
| Treasury stock, at cost; 533,686 shares at September 30, 2025 and December 31, 2024 | (6881) | (6881) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL STOCKHOLDERS' EQUITY | 36387 | 33375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $587382 | $587693 |

---

See Notes to Unaudited Consolidated Financial Statements

------

SUSQUEHANNA COMMUNITY FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended**  | **Nine Months Ended**  |
| | **September 30,**  | **September 30,**  |
| <br>**(In Thousands, Except Per Share Data)** | **2025** | **2024** |
| INTEREST INCOME: |  |  |
| Interest and fees on loans | $18337 | $16526 |
| Income from available-for-sale debt securities: |  |  |
| &nbsp;&nbsp;Taxable | 2164 | 2939 |
| &nbsp;&nbsp;Tax-exempt | 1251 | 1396 |
| Dividends on marketable equity securities | 35 | 46 |
| Interest on deposits with other banks | 65 | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income | 21852 | 20966 |
| INTEREST EXPENSE: |  |  |
| Interest on deposits | 7641 | 7976 |
| Interest on other borrowings | 1831  | 2730 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 9472 | 10706 |
| Net interest income | 12380 | 10260 |
| Provision for credit loss expenses- Loans | 1954 | 94 |
| Net interest income after credit loss expense | 10426 | 10166 |
| OTHER INCOME: |  |  |
| Service charges on deposit accounts | 364 | 364 |
| Realized losses on available-for-sale debt securities, net  | (142) | 0 |
| Gains on marketable equity securities, net | 30 | 86 |
| Loss on interest rate swap | (205) | 0 |
| Realized gains on loans sales, net | 257 | 248 |
| Bank card and credit card interchange fees | 437 | 441 |
| Brokerage fees and commissions | 222 | 309 |
| Increase in cash surrender value of life insurance | 138 | 135 |
| Other operating income | 967 | 714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income | 2068 | 2297 |
| OTHER EXPENSES: |  |  |
| Salaries and employee benefits | 6155 | 6401 |
| Occupancy expense | 616 | 532 |
| Furniture and equipment expense | 847 | 958 |
| Automated teller machine expense | 270 | 257 |
| Data processing expenses | 1274 | 900 |
| Pennsylvania corporate and shares taxes | 276 | 198 |
| Merger-related expenses | 1460 | 0 |
| Other operating expenses | 1955 | 1505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses | 12853 | 10751 |
| (Loss) Income before income tax provision | (359) | 1712 |
| (Credit) Provision for income taxes | (281) | 57 |
| NET (LOSS) INCOME | $(78) | $1655 |
| (LOSS) EARNINGS PER COMMON SHARE - BASIC AND DILUTED | $(0.03) | $0.58 |

---

See Notes to Unaudited Consolidated Financial Statements

------

SUSQUEHANNA COMMUNITY FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended**  | **Nine Months Ended**  |
| <br>**(In Thousands)** | **September 30,** <br>**2025** | **September 30,** <br>**2024** |
| Net (loss) income | $(78) | $1655 |
| Unrealized gains on available-for-sale debt securities: |  |  |
| &nbsp;&nbsp;Unrealized holding gains on available-for-sale debt securities | 6359 | 4091 |
| &nbsp;&nbsp;Reclassification adjustment for losses realized in earnings (a) | 142  | 0  |
| Other comprehensive gain on available-for-sale debt securities | 6501 | 4091 |
| Taxes | (1365) | (859) |
| Net other comprehensive income | 5136 | 3232 |
| Total comprehensive income | $5058 | $4887 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Realized losses on available-for-sale debt securities are included in the Consolidated Statements of Operations as a separate element of Other Income.

See Notes to Unaudited Consolidated Financial Statements

------

SUSQUEHANNA COMMUNITY FINANCIAL, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Nine Months Ended**<br>**September 30, 2025** | <br>**Common**<br>**Stock** | <br>**Additional**<br>**Paid-in**<br>**Capital** | <br>**Retained**<br>**Earnings** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Loss** | <br>**Treasury**<br>**Stock** | <br>**Total** |
| **Balance, December 31, 2024** | $**3375** | $**455** | $**55234** | $**(18808)** | $**(6881)** | $**33375** |
| Net loss |  |  | (78) |  |  | (78) |
| Other comprehensive income |  |  |  | 5136 |  | 5136 |
| Dividends declared, $0.72 per share |  |  | (2046) |  |  | (2046) |
| **Balance, September 30, 2025** | $**3375** | $**455** | $**53110** | $**(13672)** | $**(6881)** | $**36387** |
| **Nine Months Ended September 30, 2024** |  |  |  |  |  |  |
| **Balance, December 31, 2023** | $**3375** | $**455** | $**55612** | $**(17119)** | $**(6881)** | $**35442** |
| Net income |  |  | 1655 |  |  | 1655 |
| Other comprehensive income |  |  |  | 3232 |  | 3232 |
| Dividends declared, $0.72 per share |  |  | (2045) |  |  | (2045) |
| **Balance, September 30, 2024** | $**3375** | $**455** | $**55222** | $**(13887)** | $**(6881)** | $**38284** |

---

See Notes to Unaudited Consolidated Financial Statements

------

SUSQUEHANNA COMMUNITY FINANCIAL, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **September 30,**  | **September 30,**  |
| **(In Thousands)** | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;Net (loss) income | $(78) | $1655 |
| &nbsp;&nbsp;Adjustments to reconcile net (loss) income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for depreciation | 510 | 592 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 1954 | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in cash surrender value of life insurance | (138) | (135) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on bank-owned life insurance benefits | 0  | (59) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization and accretion of available-for-sale debt securities, net | 181 | 217 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized losses on available-for-sale debt securities | 142 | 0  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gains on marketable equity securities, net | (30) | (86) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sales of loans, net | (257) | (248) |
| &nbsp;&nbsp;&nbsp;&nbsp;Origination of loans for sale | (7820) | (9270) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of loans | 7151 | 8809 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | (286) | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 629 | 900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable  | 502 | 551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 217 | 116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash Provided by Operating Activities | 2677 | 3244 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;Proceeds from maturities of available-for-sale debt securities | 9079  | 9236 |
| &nbsp;&nbsp;Proceeds from sales of available-for-sale debt securities | 3914  | 0  |
| &nbsp;&nbsp;Proceeds from sales of equity securities | 908 | 133 |
| &nbsp;&nbsp;Proceeds from bank-owned life insurance | 0  | 1576 |
| &nbsp;&nbsp;Purchase of restricted investment in bank stocks | (4826) | (1895) |
| &nbsp;&nbsp;Redemption of restricted investment in bank stocks | 3761 | 1507  |
| &nbsp;&nbsp;Net increase in loans | (8803) | (19227) |
| &nbsp;&nbsp;Acquisition of bank premises and equipment | (91) | (426) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash Provided by (Used in) Investing Activities | 3942 | (9096) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;Net increase (decrease) in deposits | 13040 | (2341) |
| &nbsp;&nbsp;Net (decrease) increase in Federal Home Loan Bank line-of-credit | (14400) | 9500 |
| &nbsp;&nbsp;Net (decrease) increase in Atlantic Community Bankers Bank line-of-credit | (2000) | 1300  |
| &nbsp;&nbsp;Dividends paid | (2728) | (2045) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash (Used for) Provided by Financing Activities | (6088) | 6414 |
| **NET INCREASE IN CASH AND CASH EQUIVALENTS** | 531 | 562 |
| **CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD** | 5549 | 6058 |
| **CASH AND CASH EQUIVALENTS, END OF PERIOD** | $6080 | $6620 |
| **SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:** |  |  |
| &nbsp;&nbsp;Foreclosure of real estate loan | $50  | $0  |
| &nbsp;&nbsp;Interest paid | $8970 | $10155 |
| &nbsp;&nbsp;Income taxes paid | $275 | $25 |

---

See Notes to Unaudited Consolidated Financial Statements

------

**SUSQUEHANNA FINANCIAL COMMUNITY, INC.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Principles of Consolidation and Basis of Financial Statement Presentation**

The consolidated financial statements include the accounts of Susquehanna Community Financial, Inc., and its wholly-owned subsidiaries, Susquehanna Community Bank ("Bank") and Susquehanna Financial Investment Corporation (collectively, the "Corporation"). All significant intercompany balances and transactions have been eliminated.

Accounting principles generally accepted in the United States of America ("GAAP") require a corporation's consolidated financial statements to include subsidiaries in which the corporation has a controlling financial interest. This requirement usually has been applied to subsidiaries in which a corporation has a majority voting interest.

Investments in companies in which the Corporation controls operating and financing decisions (principally defined as owning a voting or economic interest greater than 50%) are consolidated. Investments in companies in which the Corporation has significant influence over operating and financing decisions (principally defined as owning a voting or economic interest of 20% to 50%) are generally accounted for by the equity method of accounting.

The unaudited Interim Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information. The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Corporation. All such adjustments are of a normal recurring nature. Certain information and footnote disclosure normally included in the financial statements prepared in accordance with GAAP and industry practice have been omitted from interim reporting pursuant to SEC rules. These Interim Consolidated Financial Statements and the accompanying notes should be read in conjunction with the Corporation's audited consolidated financial statements for the years ended December 31, 2024 and 2023.

**Significant Accounting Policies**

The significant accounting policies followed by the Corporation and used in the preparation of these unaudited Interim Consolidated Financial Statements are disclosed in the Corporation's annual report for the year ended December 31, 2024 and are unchanged at September 30, 2025. These policies are in accordance with principles generally accepted in the United States of America and conform to common practices in the banking industry.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**2. SECURITIES**

**Debt Securities**

The amortized cost and fair value of available-for-sale debt securities at September 30, 2025 and December 31, 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(In Thousands)** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | <br>**Amortized**<br>**Cost** | **Gross**<br>**Unrealized**<br>**Holding**<br>**Gains** | **Gross**<br>**Unrealized**<br>**Holding**<br>**Losses** | <br>**Allowance for**<br>**Credit Losses** | <br>**Fair**<br>**Value** |
| Obligations of the U.S. Treasury | $2098 | $0 | $(139) | $0 | $1959 |
| Obligations of U.S. Government agencies | 30541 | 0  | (3322) | 0  | 27219 |
| Mortgage-backed securities  | 63409 | 7  | (8202) | 0  | 55214 |
| Obligations of states and political subdivisions | 66300 | 9 | (5582) | 0  | 60727 |
| Corporate debt securities | 3201 | 7 | (84) | 0  | 3124 |
| Total available-for-sale debt securities | $165549 | $23 | $(17329) | $0 | $148243 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(In Thousands)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | <br>**Amortized**<br>**Cost** | **Gross**<br>**Unrealized**<br>**Holding**<br>**Gains** | **Gross**<br>**Unrealized**<br>**Holding**<br>**Losses** | <br>**Allowance for**<br>**Credit Losses** | <br>**Fair**<br>**Value** |
| Obligations of the U.S. Treasury | $2123 | $0 | $(221) | $0 | $1902 |
| Obligations of U.S. Government agencies | 33447 | 0  | (4737) | 0  | 28710 |
| Mortgage-backed securities  | 68922 | 0  | (11357) | 0  | 57565 |
| Obligations of states and political subdivisions | 68157 | 0  | (7308) | 0  | 60849 |
| Corporate debt securities | 6216 | 4 | (188) | 0  | 6032 |
| Total available-for-sale debt securities | $178865 | $4 | $(23811) | $0 | $155058 |

---

At September 30, 2025 and December 31, 2024, investment securities with a carrying value of $95,143,000 and $97,638,000, respectively, were pledged to secure certain deposits and for other purposes as required law.

The amortized cost and fair value of available-for-sale securities by contractual maturity are shown below (in thousands). Excepted maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary:

---

| | | |
|:---|:---|:---|
| **(In Thousands)** | **September 30, 2025** | **September 30, 2025** |
|  | **Amortized**<br>**Cost** | **Fair**<br>**Value** |
| Due in one year or less | $0 | $0 |
| Due from one year through five years | 16862 | 15893 |
| Due from five years through ten years | 32591 | 28858 |
| Due after ten years | 52687 | 48278 |
| Sub-total | 102140 | 93029 |
| Mortgage-backed securities | 63409 | 55214 |
| Total | $165549 | $148243 |

---

------

There is no concentration of investments that exceed 10 precent of shareholders' equity of any individual issuer, excluding those guaranteed by the U.S government or its agencies.

Gross realized gains and gross realized losses on sales of available-for-sale debt securities for the nine months ended September 30, 2025 and 2024, were as follows:

---

| | | |
|:---|:---|:---|
| **(In Thousands)** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,**  | **September 30,**  |
|  | **2025** | **2024** |
| Gross realized gains from sales | $0  | $0 |
| Gross realized losses from sales | 142  | 0 |
| Proceeds from sales | 3914  | 0 |

---

**Equity Securities**

A summary of realized and unrealized gains and (losses) on equity securities for the nine months ended September 30, 2025 and 2024, were as follows:

---

| | | |
|:---|:---|:---|
| **(In Thousands)** | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| Net unrealized (losses) gains recognized during the reporting period on equity securities still held at the reporting date | $(13) | $82  |
| Net realized gains recognized during the period on equity securities sold during the period | 43  | 4  |
| Gains recognized during the reporting period on equity securities | $30 | $86 |

---

The following tables present gross unrealized losses and fair value of available-for-sale debt securities with unrealized losses, for which no allowance for credit losses has been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2025 and December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **September 30, 2025** | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or More** | **12 Months or More** | **Total** | **Total** |
| **(In Thousands)** | | | | | | |
|  | **Fair**<br>**Value** | **Unrealized**<br>**Losses** | **Fair**<br>**Value** | **Unrealized**<br>**Losses** | **Fair**<br>**Value** | **Unrealized**<br>**Losses** |
| Obligations of the U.S. Treasury | $0  | $0  | $1959 | $139 | $1959 | $139 |
| Obligations of U.S. Government agencies | 0  | 0  | 27219 | 3322 | 27219 | 3322 |
| Mortgage-backed securities  | 0  | 0  | 54105 | 8202 | 54105 | 8202 |
| Obligations of states and political subdivisions | 2464 | 35 | 56418 | 5547 | 58882 | 5582 |
| Corporate debt securities | 0  | 0  | 2129 | 84 | 2129 | 84 |
| Total | $2464 | $35 | $141830 | $17294 | $144294 | $17329 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **Less Than 12 Months** | **Less Than 12 Months** | **12 Months or More** | **12 Months or More** | **Total** | **Total** |
| **(In Thousands)** | | | | | | |
|  | **Fair**<br>**Value** | **Unrealized**<br>**Losses** | **Fair**<br>**Value** | **Unrealized**<br>**Losses** | **Fair**<br>**Value** | **Unrealized**<br>**Losses** |
| Obligations of the U.S. Treasury | $0  | $0  | $1902 | $221 | $1902 | $221 |
| Obligations of U.S. Government agencies | 0  | 0  | 28710 | 4737 | 28710 | 4737 |
| Mortgage-backed securities  | 1088  | 26  | 56477 | 11331 | 57565 | 11357 |
| Obligations of states and political subdivisions | 5255 | 163 | 55594 | 7145 | 60849 | 7308 |
| Corporate debt securities | 0  | 0  | 5527 | 188 | 5527 | 188 |
| Total | $6343 | $189 | $148210 | $23622 | $154553 | $23811 |

---

------

<u>Obligations of U.S. Treasury</u>

Obligations of U.S. Treasuries consist of medium and long-term notes issued by the U.S. Treasury. These securities have interest rates that are largely fixed-rate, have varying mid- to long-term maturity dates and have contractual cash flows guaranteed by the U.S. Government.

At September 30, 2025, one U.S. Treasury security had an unrealized loss, and this security was in a continuous loss position for twelve months or more. This unrealized loss relates principally to changes in interest rates subsequent to the acquisition of this specific security.

<u>Obligations of U.S. Government Agencies</u>

Obligations of U.S. government agencies consist of medium and long-term notes issued by Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), and Federal Home Loan Bank (FHLB). These securities have interest rates that are largely fixed-rate, have varying mid- to long-term maturity dates and have contractual cash flows guaranteed by the U.S. Government or agencies of the U.S. Government.

At September 30, 2025, twenty-four U.S. government agency and sponsored agency securities had unrealized losses, and these securities had been in a continuous loss position for twelve months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities.

<u>Mortgage-Backed Securities</u>

Mortgage-backed securities consist of medium and long-term pools of securitized residential mortgages issued by FHLMC, FNMA, and Government National Mortgage Association (GNMA). These securities have interest rates that are largely fixed-rate, have varying mid- to long-term maturity dates and have contractual cash flows guaranteed by the U.S. Government or agencies of the U.S. Government.

At September 30, 2025, forty-seven mortgage-backed securities had unrealized losses, and these securities had been in a continuous loss position for twelve months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities.

<u>Obligations of State and Political Subdivisions</u>

The municipal securities are bank qualified general obligation or revenue-based bonds; rated as investment grade by various credit rating agencies and have fixed rates of interest with mid- to long-term maturities. Fair values of these securities are highly driven by interest rates. Management performs ongoing credit quality reviews on these issues.

At September 30, 2025, one hundred forty-four state and political subdivision securities had unrealized losses, and one hundred thirty-nine of the securities had been in a continuous loss position for twelve months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities.

<u>Corporate Debt Securities</u>

Corporate debt securities consist of debt securities issued by U.S. corporations. These securities have interest rates that are largely fixed-rate and have short- and medium-term maturity dates. The majority of the corporate issuers are rated investment grade by crediting rating agencies and those issuers that are rated below investment grade have received some type of government support to bolster their creditworthiness. Management performs ongoing credit quality reviews on these issues.

At September 30, 2025, six corporate debt securities had unrealized losses, and these securities had been in a continuous loss position for twelve months or more. These unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities.

The Corporation recognized no credit losses during 2025 and 2024.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. LOANS AND ALLOWANCE FOR CREDIT LOSSES**

The composition of the Corporation's loan portfolio at September 30, 2025 and December 31, 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2025** | **December 31,** <br>**2024** |
| Commercial real estate  | $130680 | $130877 |
| Commercial real estate - construction | 21854 | 13415 |
| Commercial and industrial | 20690 | 22400 |
| Acquisition, construction & development | 215 | 215 |
| Agricultural | 46622 | 48623 |
| Residential mortgage  | 133977 | 128407 |
| Home equity | 33585 | 35193 |
| Consumer - other | 4605 | 5845 |
| Obligation of state & political subdivisions | 7831 | 7588 |
| Total | 400059 | 392563 |
| Less: allowance for credit losses on loans | (3208) | (3437) |
| Loans, net | $396851 | $389126 |

---

The following tables summarize the activity in the allowance for credit losses by loan class for the nine months ended September 30, 2025 and 2024 and information in regards to the allowance of credit losses and the recorded investment in loans receivable by loan class of September 30, 2025 and 2024 (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Allowance for Credit Losses** | | | | | | | |
| **Nine Months Ended September 30, 2025** | <br><br>**Beginning** <br>**Balance** | <br><br>**Charge-offs** | <br><br>**Recoveries** | <br><br>**Provision**<br>**(Reduction)** | <br>**Ending**<br>**Balance** | **Ending**<br>**Balance:**<br>**Individually**<br>**Evaluated** | **Ending**<br>**Balance:**<br>**Collectively**<br>**Evaluated** |
| Commercial real estate | $2610 | $0  | $0  | $(54) | $2556 | $0  | $2556 |
| Commercial real estate construction | 0  | (2100) | 0  | 2100 | 0  | 0  | 0  |
| Commercial and industrial | 117  | (27) | 0  | (30) | 60 | 0  | 60  |
| Acquisition, construction & development | 215  | 0  | 0  | 0  | 215 | 215  | 0  |
| Agricultural | 150  | 0  | 0  | (38) | 112 | 0  | 112  |
| Residential mortgage | 83  | 0  | 0  | 1  | 84 | 17 | 67  |
| Home equity | 14  | 0  | 0  | (6) | 8 | 0  | 8  |
| Consumer - Other | 157  | (73) | 17  | (15) | 86 | 35 | 51  |
| Obligations of state & political subdivisions | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| Unallocated | 91 | 0  | 0  | (4) | 87 | 0  | 87  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals | $3437 | $(2200) | $17 | $1954 | $3208 | $267 | $2941 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| <br>**September 30, 2025** | <br>**Ending**<br>**Balance** | **Ending Balance:**<br>**Individually** <br>**Evaluated** | **Ending Balance:**<br>**Collectively**<br>**Evaluated** |
| Commercial real estate | $130680 | $507 | $130173 |
| Commercial real estate construction | 21854 | 400 | 21454 |
| Commercial and industrial | 20690 | 30 | 20660 |
| Acquisition, construction & development | 215 | 215 | 0  |
| Agricultural | 46622 | 519 | 46103 |
| Residential mortgage | 133977 | 454 | 133523 |
| Home equity | 33585 | 195 | 33390 |
| Consumer - Other | 4605 | 146 | 4459 |
| Obligations of state & political subdivisions | 7831 | 0  | 7831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $400059 | $2466 | $397593 |

---

As reflected in the table above, in the nine-month period ended September 30, 2025, the Corporation recorded a partial charge-off of $2,100,000 on a commercial construction loan. At September 30, 2025, the amortized cost balance of this loan, net of the partial charge-off was $400,000. This loan was in nonaccrual status at September 30, 2025.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Allowance for Credit Losses** | | | | | | | |
| **Nine Months Ended September 30, 2024** | <br><br>**Beginning** <br>**Balance** | <br><br>**Charge-offs** | <br><br>**Recoveries** | <br><br>**Provision**<br>**(Reduction)** | <br>**Ending**<br>**Balance** | **Ending**<br>**Balance:**<br>**Individually**<br>**Evaluated** | **Ending**<br>**Balance:**<br>**Collectively**<br>**Evaluated** |
| Commercial real estate | $2518 | $0  | $0  | $203 | $2721 | $0  | $2721  |
| Commercial real estate construction | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| Commercial and industrial | 89  | 0  | 0  | 15  | 104 | 31  | 73  |
| Acquisition, construction & development | 215  | 0  | 0  | 0  | 215 | 215  | 0  |
| Agricultural | 151  | 0  | 0  | (4) | 147 | 0  | 147  |
| Residential mortgage | 70  | 0  | 0  | 10  | 80 | 0  | 80  |
| Home equity | 94  | 0  | 0  | (80) | 14 | 1  | 13  |
| Consumer - Other | 131  | (35) | 4  | (50) | 50 | 49 | 1  |
| Obligations of state & political subdivisions | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| Unallocated | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals | $3268 | $(35) | $4 | $94 | $3331 | $296 | $3035 |

---

---

| | | | |
|:---|:---|:---|:---|
| <br>**September 30, 2024** | <br>**Ending**<br>**Balance** | **Ending Balance:**<br>**Individually** <br>**Evaluated** | **Ending Balance:**<br>**Collectively**<br>**Evaluated** |
| Commercial real estate | $128645 | $0  | $128645 |
| Commercial real estate construction | 13582 | 0  | 13582 |
| Commercial and industrial | 24036 | 129 | 23907 |
| Acquisition, construction & development | 215 | 215 | 0  |
| Agricultural | 47545 | 867 | 46678 |
| Residential mortgage | 123978 | 94 | 123884 |
| Home equity | 35329 | 239 | 35090 |
| Consumer - Other | 5777 | 209 | 5568 |
| Obligations of state & political subdivisions | 8457 | 0  | 8457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $387564 | $1753 | $385811 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued)**

**Collateral-Dependent Loans**

The following tables presents the amortized cost basis of collateral-dependent loans (in thousands) as of September 30, 2025 and December 31, 2024. Changes in the fair value of the collateral for individually evaluated loans as reported a provision for credit losses or a reversal of provision for credit losses in the period of change.

---

| | | |
|:---|:---|:---|
| | **Type of Collateral** | |
| <br>**September 30, 2025** | **Business Assets** | <br>**Real Estate** |
| Commercial real estate | $0  | $507  |
| Commercial real estate construction | 0  | 400  |
| Commercial and industrial | 30  | 0  |
| Acquisition, construction & development | 0  | 0  |
| Agricultural | 0  | 519  |
| Residential mortgage | 0  | 453  |
| Home equity | 0  | 196  |
| Consumer - Other | 0  | 0  |
| Obligations of state & political subdivisions | 0  | 0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $30  | $2075  |

---

---

| | | |
|:---|:---|:---|
| | **Type of Collateral** | |
| <br>**December 31, 2024** | **Business Assets** | <br>**Real Estate** |
| Commercial real estate | $0  | $0  |
| Commercial real estate construction | 0  | 0  |
| Commercial and industrial | 115  | 0  |
| Acquisition, construction & development | 0  | 0  |
| Agricultural | 0  | 867  |
| Residential mortgage | 0  | 90  |
| Home equity | 0  | 273  |
| Consumer - Other | 0  | 0  |
| Obligations of state & political subdivisions | 0  | 0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $115 | $1230 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued)**

**Credit Quality Indicators** 

Based on the most recent analysis performed, the following table presents recorded investment in homogenous loans by internal risk rating system as of September 30, 2025 (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** | **2022** | **Prior** | **Revolving Loans**<br>**Amortized**<br>**Cost Basis** | <br>**Total** |
| Commercial real estate  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $14379 | $21999 | $35724 | $14963 | $34922 | $3294  | $125281 |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 2437  | 396  | 0  | 578  | 3411 |
| &nbsp;&nbsp;Substandard | 0  | 0  | 369  | 520  | 901 | 198  | 1988 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $14379 | $21999 | $38530 | $15879 | $35823 | $4070  | $130680 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Commercial real estate - construction |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $5145 | $4822 | $229 | $24 | $821 | $10413  | $21454 |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 400  | 0  | 0  | 400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $5145 | $4822 | $229 | $424 | $821 | $10413  | $21854 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $2100  | $0  | $0  | $2100  |
| Commercial and industrial |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $3338 | $3121 | $1748 | $959 | $8055 | $1725  | $18946 |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 44  | 0  | 1377  | 1421 |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 112 | 211  | 323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $3338 | $3121 | $1748 | $1003 | $8167 | $3313 | $20690 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $27  | $27  |
| Acquisition, construction & development |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 215 | 0  | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $0  | $0  | $0  | $0  | $215 | $0  | $215 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Agricultural |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $3976 | $3381 | $2730 | $2988 | $27413 | $1575 | $42063  |
| &nbsp;&nbsp;Special Mention | 0  | 435  | 0  | 0  | 2194  | 24  | 2653  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 1906 | 0  | 1906 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $3976 | $3816 | $2730 | $2988 | $31513 | $1599 | $46622 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Residential Mortgage |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $15996 | $18613 | $28618 | $26860 | $41351 | $0  | $131438  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 277  | 0  | 277  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 226  | 0  | 2036 | 0  | 2262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $15996 | $18613 | $28844 | $26860 | $43664 | $0  | $133977 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Home equity |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $552 | $878 | $1048 | $74 | $64 | $30774  | $33390  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 0  | 195  | 195  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $552 | $878 | $1048 | $74 | $64 | $30969  | $33585 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** | **2022** | <br>**Prior** | **Amortized**<br>**Cost Basis** | <br>**Total** |
| Consumer - Other |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $54 | $90 | $119 | $99 | $1857 | $2240  | $4459  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 0  | 2  | 6  | 0  | 124  | 14  | 146  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $54 | $92 | $125 | $99 | $1981 | $2254  | $4605 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $10  | $5  | $49  | $9  | $73  |
| Obligations of state & political subdivisions |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $899 | $0  | $0  | $0  | $6932 | $0  | $7831  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $899 | $0  | $0  | $0  | $6932 | $0  | $7831 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals  | $44339 | $53341 | $73254 | $47327 | $129180 | $52618 | $400059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-off totals | $0  | $0  | $10  | $2105  | $49  | $36  | $2200  |

---

------

**3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued)**

**Credit Quality Indicators** 

Based on the most recent analysis performed, the following table presents recorded investment in homogenous loans by internal risk rating system as of December 31, 2024 (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2023** | **2022** | **2021** | <br>**Prior** | **Revolving Loans**<br>**Amortized**<br>**Cost Basis** | <br>**Total** |
| Commercial real estate  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $22491 | $34602 | $16296 | $16258 | $32393 | $3527  | $125567 |
| &nbsp;&nbsp;Special Mention | 0  | 2492  | 0  | 0  | 0  | 1680  | 4172 |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 457  | 520 | 161  | 1138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $22491 | $37094 | $16296 | $16715 | $32913 | $5368  | $130877 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Commercial real estate - construction |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $4438 | $235 | $204 | $280 | $1186 | $7072  | $13415 |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $4438 | $235 | $204 | $280 | $1186 | $7072  | $13415 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Commercial and industrial |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $4113 | $2690 | $1883 | $7497 | $2194 | $1537  | $19914 |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 19  | 0  | 0  | 2050  | 2069 |
| &nbsp;&nbsp;Substandard | 0  | 0  | 34  | 146  | 0  | 237  | 417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $4113 | $2690 | $1936 | $7643 | $2194 | $3824 | $22400 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Acquisition, construction & development |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 215 | 0  | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $0  | $0  | $0  | $0  | $215 | $0  | $215 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Agricultural |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $3570 | $3140 | $3467 | $12078 | $19322 | $1667 | $43244  |
| &nbsp;&nbsp;Special Mention | 442  | 0  | 0  | 353  | 1931  | 49  | 2775  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 1412  | 1168 | 24  | 2604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $4012 | $3140 | $3467 | $13843 | $22421 | $1740 | $48623 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Residential Mortgage |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $19305 | $29303 | $27539 | $12625 | $34417 | $0  | $123189  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 133  | 209  | 0  | 342  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 2916  | 1870  | 90 | 0  | 4876 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $19305 | $29303 | $30455 | $14628 | $34716 | $0  | $128407 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| Home equity |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $939 | $1112 | $80 | $0  | $44  | $32587  | $34762  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 158  | 158  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 0  | 273  | 273  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $939 | $1112 | $80 | $— | $44 | $33018  | $35193 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **2024** | **2023** | **2022** | **2021** | <br>**Prior** | **Revolving Loans**<br>**Amortized**<br>**Cost Basis** | <br>**Total** |
| Consumer - Other |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $124 | $162 | $176 | $115 | $2863 | $2209  | $5649  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 5  | 20  | 1  | 18  | 119  | 33  | 196  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $129 | $182 | $177 | $133 | $2982 | $2242  | $5845 |
| &nbsp;&nbsp;Current Period gross charge-off | $7  | $0  | $0  | $0  | $13  | $52  | $72  |
| Obligations of state & political subdivisions |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Pass | $0  | $0  | $0  | $0  | $7588  | $0  | $7588  |
| &nbsp;&nbsp;Special Mention | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;Substandard | 0  | 0  | 0  | 0  | 0  | 0  | 0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $0  | $0  | $0  | $0  | $7588 | $0  | $7588 |
| &nbsp;&nbsp;Current Period gross charge-off | $0  | $0  | $0  | $0  | $0  | $0  | $0  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals  | $55427 | $73756 | $52615 | $53242 | $104259 | $53264 | $392563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-off totals | $7 | $0  | $0  | $0  | $13 | $52 | $72 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued)**

**Nonperforming loans** 

The following tables present the amortized cost basis of loans by loan portfolio class on nonaccrual status and loans past due over 90 days still accruing interest (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**September 30, 2025** | <br>**Nonaccrual** <br>**with no ACL** | <br>**Nonaccrual** <br>**with ACL** | <br>**Total**<br>**Nonaccrual** | **Loans Past**<br>**Due Over 90**<br>**Days Still**<br>**Accruing** | <br>**Total** <br>**Nonperforming** |
| Commercial real estate | $507  | $0  | $507  | $0  | $507  |
| Commercial real estate construction | 400  | 0  | 400  | 0  | 400  |
| Commercial and industrial | 30  | 0  | 30  | 0  | 30  |
| Agricultural | 519  | 0  | 519  | 0  | 519  |
| Residential mortgage | 147  | 307  | 454  | 0  | 454  |
| Home equity | 195  | 0  | 195  | 0  | 195  |
| Consumer - Other | 80  | 66  | 146  | 0  | 146  |
| Total | $1878 | $373 | $2251 | $0  | $2251 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**December 31, 2024** | <br>**Nonaccrual** <br>**with no ACL** | <br>**Nonaccrual** <br>**with ACL** | <br>**Total**<br>**Nonaccrual** | **Loans Past**<br>**Due Over 90**<br>**Days Still**<br>**Accruing** | <br>**Total** <br>**Nonperforming** |
| Commercial and industrial | $73 | $42  | $115  | $0  | $115 |
| Agricultural | 867 | 0  | 867 | 0  | 867 |
| Residential mortgage | 90 | 0  | 90  | 0  | 90 |
| Home equity | 223 | 50  | 273  | 0  | 273 |
| Consumer - Other | 29 | 164  | 193  | 0  | 193 |
| Total | $1282 | $256 | $1538 | $0  | $1538 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. LOANS AND ALLOWANCE FOR CREDIT LOSSES (continued)**

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status as of September 30, 2025 and December 31, 2024 (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**As of September 30, 2025** | <br>**30-59 Days**<br>**Past Due** | <br>**60-89 Days**<br>**Past Due** | **Greater**<br>**than 90**<br>**Days** | <br>**Total Past**<br>**Due** | <br>**Current**<br>**Loans** | <br>**Total Loans**<br>**Receivable** |
| Commercial real estate | $454  | $967  | $0  | $1421  | $129259 | $130680 |
| Commercial real estate construction | 0  | 0  | 400  | 400  | 21454 | 21854 |
| Commercial and industrial | 243  | 129  | 0  | 372  | 20318 | 20690 |
| Acquisition, construction & development | 0  | 0  | 0  | 0  | 215 | 215 |
| Agricultural | 2056  | 1483  | 454  | 3993  | 42629 | 46622 |
| Residential mortgage | 1428 | 266 | 85 | 1779  | 132198 | 133977 |
| Home equity | 401 | 19 | 27 | 447  | 33138 | 33585 |
| Consumer - Other | 76 | 44 | 63 | 183  | 4422 | 4605 |
| Obligations of state & political subdivisions | 0  | 0  | 0  | 0  | 7831 | 7831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $4658 | $2908 | $1029 | $8595 | $391464 | $400059 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**As of December 31, 2024** | <br>**30-59 Days**<br>**Past Due** | <br>**60-89 Days**<br>**Past Due** | **Greater**<br>**than 90**<br>**Days** | <br>**Total Past**<br>**Due** | <br>**Current**<br>**Loans** | <br>**Total Loans**<br>**Receivable** |
| Commercial real estate | $35  | $538  | $0  | $573  | $130304 | $130877 |
| Commercial real estate construction | 0  | 0  | 0  | 0  | 13415 | 13415 |
| Commercial and industrial | 324  | 0  | 0  | 324  | 22076 | 22400 |
| Acquisition, construction & development | 0  | 0  | 0  | 0  | 215 | 215 |
| Agricultural | 380  | 474  | 866  | 1720  | 46903 | 48623 |
| Residential mortgage | 961 | 106 | 0  | 1067  | 127340 | 128407 |
| Home equity | 17 | 58 | 149 | 224  | 34969 | 35193 |
| Consumer - Other | 103 | 58 | 66 | 227  | 5618 | 5845 |
| Obligations of state & political subdivisions | 0  | 0  | 0  | 0  | 7588 | 7588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $1820 | $1234 | $1081 | $4135 | $388428 | $392563 |

---

**Borrowers Having Financial Difficulty**

Consistent with accounting and regulator guidance, the Corporation recognizes when a borrower is having financial difficulty and determines if certain modifications are necessary. The Corporation may, for economic or legal reasons related to a borrower's financial difficulties, grant a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Corporation's objective in offering a modification is to increase the probability of repayment of the borrower's loan. There were no modifications to borrowers experiencing financial difficulties during the nine months ended September 30, 2025 or the year ended December 31, 2024.

**Foreclosed Assets Held for Sale**

At September 30, 2025, there were no consumer mortgage loans and at December 31, 2024, there were five consumer mortgage loans totaling $339,000, respectively, in the process of foreclosure.

**Loans Held For Sale**

Included in residential loans are $1,031,000 at September 30, 2025 and $105,000 at December 31, 2024 of loans held for sale.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**4. DEPOSITS**

Major classifications of deposits at September 30, 2025 and December 31, 2024 consisted of:

---

| | | |
|:---|:---|:---|
| **(In Thousands)** | **2025** | **2024** |
| Demand Deposits | $30360 | $27624 |
| Interest-bearing demand deposits | 149945 | 142890 |
| Savings & Money Markets | 198909 | 212567 |
| Time deposits | 121823 | 104916 |
| Total | $501037 | $487997 |

---

Time deposits that meet or exceed the FDIC insurance limit of $250,000 at September 30, 2025 and December 31, 2024 were $21,315,000 and $18,718,000, respectively.

At September 30, 2025, the scheduled maturities of time deposits are as follows:

---

| | |
|:---|:---|
| **(In Thousands)** |  |
| 2025 | $38652 |
| 2026 | 76623 |
| 2027 | 2872 |
| 2028 | 1743 |
| 2029 | 1417 |
| 2030 | 516 |
| Total | $121823 |

---

**5. OTHER BORROWINGS**

Other borrowings are summarized as follows:

---

| | | |
|:---|:---|:---|
| **(In Thousands)** | **September 30,**  | **December 31,**  |
|  | **2025** | **2024** |
| Federal Home Loan Bank of Pittsburgh ("FHLB"): Line of Credit (1) | $0  | $60200  |
| Fixed-rate at 4.533%, maturing 10/01/2025 | 45800  | 0  |
| Atlantic Community Bankers Bank ("ACBB"): Line of Credit (2) | 0  | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total  | $45800 | $62200 |

---

The borrowings with the FHLB are secured by the Corporation's FHLB stock, U.S. government agency and mortgage-backed securities, and first mortgage loans under a collateral pledge and security agreement. The borrowings with the ACBB were secured by Susquehanna Community Bank stock.

(1) The Corporation had an open-ended $96,500,000 line of credit at a variable interest rate. Related information for this short-term borrowing during the nine-months ended September 30, 2025 and 2024 is summarized as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Average balance outstanding during the period | $47921 | $60673 |
| Maximum amount outstanding at any month end | 76500 | 67000 |
| Weighted average interest rate at period end | N/A | 5.18% |
| Average interest rate during the period | 4.75% | 5.66% |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(2) The Corporation had an open-ended $2,000,000 line of credit at a variable interest rate. Related information for the nine months ended September 30, 2025 and 2024 is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Average balance outstanding during the period | $2000 | $1697 |
| Maximum amount outstanding at any month end | 2000 | 2000 |
| Weighted average interest rate at period end | N/A | 9.00% |
| Average interest rate during the period | 7.99% | 9.00% |

---

The line of credit with ACBB was terminated, effective September 30, 2025.

**6. FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS**

The Corporation measures certain assets at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.

GAAP establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs used in determining valuations into three levels. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows:

Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Corporation for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available.

Level 2 - Fair value is based on significant inputs, other than Level 1 inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets and other observable inputs.

Level 3 - Fair value is based on significant unobservable inputs. Examples of valuation methodologies that would result in level 3 classification included option pricing models, discounted cash flows and other similar techniques.

Assets measured at fair value on a recurring basis and the valuation methods used at September 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **(In Thousands)** | **Quoted Prices**<br>**in Active Markets**<br>**(Level 1)** | **Other Observable**<br>**Inputs**<br>**(Level 2)** | **Unobservable**<br>**Inputs**<br>**(Level 3)** | <br>**Total**<br>**Fair Value** |
| AVAILABLE-FOR-SALE DEBT SECURITIES: |  |  |  |  |
| U.S. Treasury Securities | $1959 | $0  | $0  | $1959 |
| U.S. Government agency and sponsored agency securities | 0  | 27219 | 0  | 27219 |
| Mortgage-backed securities | 0  | 55214 | 0  | 55214 |
| Obligations of states and political subdivisions | 0  | 60727 | 0  | 60727 |
| Corporate debt securities | 0  | 3124 | 0  | 3124 |
| Total available-for-sale debt securities | $1959 | $146284 | $0  | $148243 |
| Marketable equity securities | $37 | $0  | $0  | $37 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**6. FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **(In Thousands)** | **Quoted Prices**<br>**in Active Markets**<br>**(Level 1)** | **Other Observable**<br>**Inputs**<br>**(Level 2)** | **Unobservable**<br>**Inputs**<br>**(Level 3)** | <br>**Total**<br>**Fair Value** |
| AVAILABLE-FOR-SALE DEBT SECURITIES: |  |  |  |  |
| U.S. Treasury Securities | $1902 | $0  | $0  | $1902 |
| U.S. Government agency and sponsored agency securities | 0  | 28710 | 0  | 28710 |
| Mortgage-backed securities | 0  | 57565 | 0  | 57565 |
| Obligations of states and political subdivisions | 0  | 60849 | 0  | 60849 |
| Corporate debt securities | 0  | 6032 | 0  | 6032 |
| Total available-for-sale debt securities | $1902 | $153156 | $0  | $155058 |
| Marketable equity securities | $915 | $0  | $0  | $915 |

---

The Corporation made no transfers between levels in 2025 or 2024.

Assets measured at fair value on a nonrecurring basis and the valuation methods used at September 30, 2025 and December 31, 2024 are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**September 30, 2025** | **Quoted Prices**<br>**in Active Markets**<br>**(Level 1)** | **Other Observable**<br>**Inputs**<br>**(Level 2)** | **Unobservable**<br>**Inputs**<br>**(Level 3)** | <br>**Total**<br>**Fair Value** |
| Collateral-dependent loans | $0  | $0  | $721 | $721 |
| Other real estate owned | $0  | $0  | $50 | $50 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**December 31, 2024** | **Quoted Prices**<br>**in Active Markets**<br>**(Level 1)** | **Other Observable**<br>**Inputs**<br>**(Level 2)** | **Unobservable**<br>**Inputs**<br>**(Level 3)** | <br>**Total**<br>**Fair Value** |
| Collateral-dependent loans | $0  | $0  | $138 | $138 |

---

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Corporation has utilized Level 3 inputs to determine fair value (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**September 30, 2025** | <br>**Fair Value**<br>**Estimates** | <br>**Valuation**<br>**Technique** | <br>**Unobservable**<br>**Input** | <br>**Range**<br>**(Weighted Average)** |
| Collateral dependent loans | $721 | Appraisal of Collateral (1) | Appraisal Adjustments (2) | 0% -100% |
|  |  |  | Liquidation Expenses (2) | 0% -35% |
| Other real estate owned | 50 | Appraisal of Collateral (1) | Appraisal Adjustments (2) | 28% |
|  |  |  | Liquidation Expenses (2) | 7% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**December 31, 2024** | **Fair Value**<br>**Estimates** | **Valuation**<br>**Technique** | **Unobservable**<br>**Input** | **Range**<br>**(Weighted Average)** |
| Collateral dependent loans | $138 | Appraisal of Collateral (1) | Appraisal Adjustments (2) | 0% -100% |
|  |  |  | Liquidation Expenses (2) | 0% -35% |

---

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not observable.

(2) Appraisals may be adjusted for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**6. FAIR VALUE MEASUREMENTS AND FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)**

GAAP requires disclosure of fair value information about financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. GAAP excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented are not intended to and do not represent the underlying value of the Corporation.

The estimated fair values of the Corporation's financial instruments not carried at fair value are as follows at September 30, 2025 and December 31, 2024 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Valuation**<br>**Method (s)**<br>**Used** | **Carrying**<br>**Amount** | **Fair**<br>**Value** | **Carrying**<br>**Amount** | **Fair**<br>**Value** |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;Cash and due from banks | Level 1 | $6080 | $6080 | $5549 | $5549 |
| &nbsp;&nbsp;Restricted investments in bank stock | Level 2 | 7275 | 7275 | 6210 | 6210 |
| &nbsp;&nbsp;Loans, net | Level 3 | 396851 | 388997 | 389126 | 369958 |
| &nbsp;&nbsp;Accrued interest receivable | Level 2 | 3028 | 3028 | 2742 | 2742 |
| &nbsp;&nbsp;Mortgage servicing rights (included in Other Assets) | Level 3 | 504 | 952 | 538 | 972 |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Deposits  | Level 2 | 501037 | 433321 | 487997 | 418542 |
| &nbsp;&nbsp;Other borrowings | Level 2 | 45800 | 45800 | 62200 | 62200 |
| &nbsp;&nbsp;Accrued interest payable | Level 2 | 1537 | 1537 | 1035 | 1035 |

---

**7. ACCUMULATED OTHER COMPREHENSIVE LOSS**

The following table presents the changes in accumulated other comprehensive loss by component net of tax for the nine months ended September 30, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
| **(Dollars in thousands)** | | | |
|  | <br>**Pretax** | <br>**Tax Effect** | <br>**After-tax** |
| **Nine Months Ended September 30, 2025** |  |  |  |
| Balance, beginning of period | $(23807) | $4999 | $(18808) |
| Unrealized holding gain on available-for-sale securities arising during the period | 6501 | (1365) | 5136 |
| Total other comprehensive income | 6501 | (1365) | 5136 |
| Balance, end of period | $(17306) | $3634 | $(13672) |
| **Nine Months Ended September 30, 2024** |  |  |  |
| Balance, beginning of period | $(21670) | $4551 | $(17119) |
| Unrealized holding gain on available-for-sale securities arising during the period | 4091 | (859) | 3232 |
| Total other comprehensive income | 4091 | (859) | 3232 |
| Balance, end of period | $(17579) | $3692 | $(13887) |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**8. DERIVATIVE FINANCIAL INSTRUMENT**

At December 31, 2024, the Corporation was a party to an interest rate swap agreement with a third party. The interest rate swap agreement was part of a fair value hedge of a closed pool of the Corporation's fixed-rate securities. The notional amount of the interest rate swap was $50,000,000 at December 31, 2024.

In the nine-month period ended September 30, 2025, the interest rate swap was terminated, resulting in a loss of $205,000 that is included in other income in the unaudited Consolidated Statement of Income.

At September 30, 2025, the Corporation was not a party to any derivative financial instruments.

**9. BUSINESS COMBINATION – MERGER WITH CITIZENS & NORTHERN CORPORATION**

On April 23, 2025, Citizens & Northern Corporation ("C&N") and Susquehanna Community Financial, Inc. announced the signing of an Agreement and Plan of Merger. Effective October 1, 2025, the merger was completed. Under the terms of the Agreement and Plan of Merger, Susquehanna Community Financial, Inc. merged with and into C&N, with C&N remaining as the surviving entity and Susquehanna Community Bank merged with and into Citizens & Northern Bank (C&N's wholly-owned banking subsidiary) with Citizens & Northern Bank as the surviving entity.

At the effective time of the merger, Susquehanna Community Financial, Inc.'s shareholders became entitled to exchange each share of Susquehanna common stock owned for 0.80 shares of C&N common stock.

In the nine months ended September 30, 2025, the Corporation incurred pre-tax merger-related expenses of $1,460,000, including investment banking, legal and other professional expenses and compensation-related expense.

------

## Exhibit 99.3

**Exhibit 99.3**

**UNAUDITED PRO FORMA COMBINED CONDENSED CONSOLIDATED FINANCIAL DATA**

**(In thousands of dollars, except per share data)**

On April 23, 2025, Citizens & Northern Corporation ("C&N") and Susquehanna Community Financial, Inc. ("Susquehanna") announced the signing of an Agreement and Plan of Merger. Effective October 1, 2025, the merger was completed. Under the terms of the Agreement and Plan of Merger, Susquehanna merged with and into C&N, with C&N remaining as the surviving entity and Susquehanna Community Bank (Susquehanna's wholly-owned subsidiary) merged with and into Citizens & Northern Bank (C&N's wholly-owned banking subsidiary) with Citizens & Northern Bank as the surviving entity.

The unaudited pro forma combined condensed consolidated financial information has been prepared using the acquisition method of accounting, giving effect to the merger. The unaudited pro forma combined condensed consolidated balance sheet combines the historical information of C&N and Susquehanna as of September 30, 2025, and assumes the merger was completed on that date. The unaudited pro forma combined condensed consolidated income statement combines the historical financial information of C&N and Susquehanna and gives effect to the merger as if it had been completed as of January 1, 2024 and carried forward through December 31, 2024 and the nine months ended September 30, 2025. The unaudited pro forma combined condensed consolidated financial information is presented for illustrative purposes only and is not necessarily indicative of the results of operations or financial condition had the merger been completed on the date described above, nor is it necessarily indicative of the results of operations in future periods or the future financial condition and results of operations of the combined entities. The financial information should be read in conjunction with the accompanying notes to the unaudited pro forma combined condensed consolidated financial information. Certain reclassifications have been made to Susquehanna historical financial information to conform to C&N's presentation of financial information.

The value of C&N's common stock recorded as consideration in the merger is based on the average of the high and low trading price of C&N's common stock on October 1, 2025, which is the merger completion date. For purposes of the pro forma financial information, the fair value of C&N's common stock issued in connection with the merger was $19.64 per share.

The pro forma financial information includes estimated adjustments, including adjustments to record Susquehanna's assets and liabilities at their respective fair values. The pro forma adjustments are subject to change based on additional information as it becomes available. The final allocation of the purchase price will be determined after the merger is completed and after a more thorough analysis to determine the fair value of Susquehanna's assets and liabilities has been completed. Changes in the estimated fair values of the net assets as compared with the information presented in the unaudited pro forma combined condensed consolidated financial information may change the amount of the purchase price allocated to goodwill and other assets and liabilities and may impact C&N's statement of income due to adjustments in amortization of the adjusted assets and liabilities. Also, any changes in Susquehanna's stockholders' equity will change the purchase price allocation, which may result in an adjustment to the amount of goodwill recorded. The final adjustments may vary materially from the adjustments reflected in the unaudited pro forma financial information herein.

In November 2025, the FASB issued Accounting Standards Update 2025-08, Financial Instruments – Credit Losses (Topic 326). ASU 2025-08 expands the use of the gross up method to certain acquired loans beyond purchased financial assets with credit deterioration. The ASU applies the gross-up method to acquired non-PCD assets that are purchased seasoned loans ultimately eliminating the Day 1 credit loss expense and reducing interest income recognized in subsequent periods. The ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2026 and is applied on a prospective basis. Early adoption is permitted, and C&N's management expects to adopt the ASU in accounting for this business combination in the fourth quarter of 2025. If the ASU is adopted early, the impact would be to remove the Day 1 provision for credit losses of $4.1 million and instead gross up loans and the allowance for credit losses, and reduce goodwill, recorded in the acquisition.

C&N's management expects the merger will provide the combined company with financial benefits that include reduced operating expenses. The unaudited pro forma combined condensed consolidated financial information, while helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings or opportunities to earn additional revenue, and accordingly does not attempt to predict or suggest future results. Also, the unaudited pro forma combined condensed consolidated statements of income presented herein does not necessarily reflect what the historical results of the combined company would have been had the companies been combined during this period.

The unaudited pro forma combined condensed consolidated financial information has been derived from and should be read in conjunction with the historical consolidated financial information and related notes, which are contained in C&N's 10-Q for the three-month and nine-month periods ended September 30, 2025, Susquehanna's audited financial statements for the year ended December 31, 2024 which were included in C&N's Form S-4 filed on July 22, 2025, and Susquehanna's unaudited financial statements for the nine-month period ended September 30, 2025 which appear elsewhere in this document.

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**Unaudited Pro Forma Combined Condensed Consolidated Balance Sheet**

**As of September 30, 2025**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(Dollars in Thousands)** | <br>**C&N**<br>**Historical** | <br>**Susquehanna**<br>**Historical** | **Transaction**<br>**Accounting**<br>**Adjustments** | <br>**Pro Forma**<br>**Combined** | <br>**Note**<br>**Reference** |
| ASSETS |  |  |  |  |  |
| Cash and due from banks | $123090 | $6080 | $(2) | $129168 | (1) |
| Available-for-sale debt securities | 415313 | 148243 | (627) | 562929 | (2) |
| Loans receivable | 1945107 | 400059 | (9700) | 2335466 |  |
| Allowance for credit losses on loans | (23474) | (3208) | (4492) | (31174) |  |
| Loans, net | 1921633 | 396851 | (14192) | 2304292 | (3) |
| Bank-owned life insurance | 52614 | 7953 | 0 | 60567 |  |
| Bank premises and equipment, net | 21055 | 10163 | (3210) | 28008 | (4) |
| Goodwill | 52505 | 0 | 11500 | 64005 | (1) |
| Core deposit intangibles, net | 1762 | 0 | 10222 | 11984 | (5) |
| Deferred tax asset, net | 16759 | 4458 | 1816 | 23033 | (6) |
| Other assets | 59302 | 13634 | (37) | 72899 | (7) |
| TOTAL ASSETS | $2664033 | $587382 | $5470 | $3256885 |  |
| LIABILITIES |  |  |  |  |  |
| Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;Noninterest-bearing | $508475 | $30360 | $0 | $538835 |  |
| &nbsp;&nbsp;Interest-bearing | 1657260 | 470677 | 451 | 2128388 | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 2165735 | 501037 | 451 | 2667223 |  |
| Borrowed funds | 149335 | 45800 | 0 | 195135 |  |
| Subordinated debt, net | 24919 | 0 | 0 | 24919 |  |
| Other liabilities | 30085 | 4158 | 5281 | 39524 | (9) |
| TOTAL LIABILITIES | 2370074 | 550995 | 5732 | 2926801 |  |
| STOCKHOLDERS' EQUITY |  |  |  |  |  |
| Preferred stock | 0 | 0 | 0 | 0 |  |
| Common stock | 16030 | 3375 | (1102) | 18303 |  |
| Paid-in capital | 143352 | 455 | 41713 | 185520 |  |
| Retained earnings | 171733 | 53110 | (61379) | 163454 |  |
| Accumulated other comprehensive loss | (26026) | (13672) | 13672 | (26026) |  |
| Treasury stock, at cost | (11130) | (6881) | 6844 | (11167) |  |
| TOTAL STOCKHOLDERS' EQUITY | 293959 | 36387 | (262) | 330084 | (10) |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $2664033 | $587382 | $5470 | $3256885 |  |

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The accompanying notes are an integral part of these unaudited pro forma combined condensed consolidated financial statements.

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**Citizens & Northern Corporation**

**Unaudited Pro Forma Combined Condensed Consolidated Statement of Income**

**For the Year Ended December 31, 2024**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(In Thousands)** | <br>**C&N**<br>**Historical** | <br>**Susquehanna**<br>**Historical** | **Transaction**<br>**Accounting**<br>**Adjustments** | <br>**Pro Forma**<br>**Combined** | <br>**Note**<br>**Reference** |
| INTEREST INCOME |  |  |  |  |  |
| Interest and fees on loans | $112792 | $22337 | $1624 | $136753 | (3) |
| Income from available-for-sale debt securities | 10853 | 5632 | 2242 | 18727 | (2) |
| Other interest income | 4433 | 142 | 4575 |  |  |
| Total interest and dividend income | 128078 | 28111 | 3866 | 160055 |  |
| INTEREST EXPENSE |  |  |  |  |  |
| Interest on deposits | 39200 | 10576 | (451) | 49325 | (8) |
| Interest on borrowed funds and senior and subordinated debt | 9763 | 3596 |  | 13359 |  |
| Total interest expense | 48963 | 14172 | (451) | 62684 |  |
| Net interest income | 79115 | 13939 | 4317 | 97371 |  |
| Provision for credit losses | 2195 | 225 | 4100 | 6520 | (3) |
| Net interest income after provision for credit losses | 76920 | 13714 | 217 | 90851 |  |
| NONINTEREST INCOME |  |  |  |  |  |
| Trust revenue | 7928 | 0 |  | 7928 |  |
| Brokerage and insurance revenue | 2271 | 374 |  | 2645 |  |
| Service charges on deposit accounts | 5867 | 487 |  | 6354 |  |
| Interchange revenue from debit card transactions | 4276 | 584 |  | 4860 |  |
| Net gains from sale of loans | 1158 | 339 |  | 1497 |  |
| Increase in cash surrender value of life insurance | 1830 | 182 |  | 2012 |  |
| Other noninterest income | 5879 | 1025 |  | 6904 |  |
| Realized (losses) on available-for-sale debt securities, net | 0 | (150) |  | (150) |  |
| Total noninterest income | 29209 | 2841 | 0 | 32050 |  |
| NONINTEREST EXPENSE |  |  |  |  |  |
| Salaries and employee benefits | 44930 | 8197 |  | 53127 |  |
| Net occupancy and equipment expense | 5473 | 1781 | (103) | 7151 | (4) |
| Data processing and telecommunications expense | 7768 | 1370 |  | 9138 |  |
| Automated teller machine and interchange expense | 1818 | 348 |  | 2166 |  |
| Pennsylvania shares tax | 1733 | 271 |  | 2004 |  |
| Merger-related expenses | 0 | 0 | 6453 | 6453 | (11) |
| Other noninterest expense | 12536 | 2118 | 2960 | 17614 | (5) |
| Total noninterest expense | 74258 | 14085 | 9310 | 97653 |  |
| Income before income tax provision | 31871 | 2470 | (9093) | 25248 |  |
| Income tax provision | 5913 | 121 | (1953) | 4081 | (12) |
| NET INCOME | $25958 | $2349 | $(7140) | $21167 |  |
| EARNINGS PER COMMON SHARE - BASIC AND DILUTED | $1.69 | $0.83 |  | $1.20 | (13) |

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The accompanying notes are an integral part of these unaudited pro forma combined condensed consolidated financial statements.

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**Citizens & Northern Corporation**

**Unaudited Pro Forma Combined Condensed Consolidated Statement of Income**

**For the Nine Months Ended September 30, 2025**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **(In Thousands)** | <br>**C&N**<br>**Historical** | <br>**Susquehanna**<br>**Historical** | **Transaction**<br>**Accounting**<br>**Adjustments** | <br>**Pro Forma**<br>**Combined** | <br>**Note**<br>**Reference** |
| INTEREST INCOME |  |  |  |  |  |
| Interest and fees on loans | $86423 | $18337 | $1161 | $105921 | (3) |
| Income from available-for-sale debt securities | 8741 | 3415 | 1682 | 13838 | (2) |
| Other interest income | 2649 | 100 | 2749 |  |  |
| Total interest and dividend income | 97813 | 21852 | 2843 | 122508 |  |
| INTEREST EXPENSE |  |  |  |  |  |
| Interest on deposits | 28332 | 7641 | 0 | 35973 | (8) |
| Interest on borrowed funds and senior and subordinated debt | 6101 | 1831 | 7932 |  |  |
| Total interest expense | 34433 | 9472 | 0 | 43905 |  |
| Net interest income | 63380 | 12380 | 2843 | 78603 |  |
| Provision for credit losses | 4753 | 1954 | 6707 |  |  |
| Net interest income after provision for credit losses | 58627 | 10426 | 2843 | 71896 |  |
| NONINTEREST INCOME |  |  |  |  |  |
| Trust revenue | 6125 | 0 |  | 6125 |  |
| Brokerage and insurance revenue | 1542 | 223 |  | 1765 |  |
| Service charges on deposit accounts | 4333 | 364 |  | 4697 |  |
| Interchange revenue from debit card transactions | 3391 | 437 |  | 3828 |  |
| Net gains from sale of loans | 925 | 257 |  | 1182 |  |
| Increase in cash surrender value of life insurance | 1400 | 138 |  | 1538 |  |
| Other noninterest income | 4738 | 791 |  | 5529 |  |
| Realized (losses) on available-for-sale debt securities, net | 0 | (142) |  | (142) |  |
| Total noninterest income | 22454 | 2068 | 0 | 24522 |  |
| NONINTEREST EXPENSE |  |  |  |  |  |
| Salaries and employee benefits | 34119 | 6155 |  | 40274 |  |
| Net occupancy and equipment expense | 4198 | 1463 | (77) | 5584 | (4) |
| Data processing and telecommunications expense | 5991 | 1274 |  | 7265 |  |
| Automated teller machine and interchange expense | 1319 | 270 |  | 1589 |  |
| Pennsylvania shares tax | 1435 | 276 |  | 1711 |  |
| Merger-related expenses | 1049 | 1460 |  | 2509 |  |
| Other noninterest expense | 9719 | 1955 | 1553 | 13227 | (5) |
| Total noninterest expense | 57830 | 12853 | 1476 | 72159 |  |
| Income (loss) before income tax provision | 23251 | (359) | 1367 | 24259 |  |
| Income tax provision (credit) | 4290 | (281) | 301 | 4310 | (12) |
| NET INCOME (LOSS) | $18961 | $(78) | $1066 | $19949 |  |
| EARNINGS (LOSS) PER COMMON SHARE - BASIC AND DILUTED | $1.22 | $(0.03) |  | $1.12 | (13) |

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The accompanying notes are an integral part of these unaudited pro forma combined condensed consolidated financial statements.

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**Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Under the terms of the merger agreement, Susquehanna has merged into C&N, with Susquehanna shareholders receiving 0.8 shares of C&N stock for each share of Susquehanna held along with cash in lieu of stock for any fractional shares. The unaudited pro forma combined condensed consolidated financial statements have been prepared using the acquisition method of accounting, giving effect to the merger. The unaudited pro forma combined condensed consolidated balance sheet combines the historical information of C&N and Susquehanna as of September 30, 2025, and assumes the merger was completed on that date. The unaudited pro forma combined condensed consolidated statements of income combine the historical financial information of C&N and Susquehanna and give effect to the merger as of January 1, 2024 and carried through December 31, 2024 and the nine months ended September 30, 2025.

The merger consideration and allocation of the purchase price is as follows:

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| | |
|:---|:---|
| **(Dollars in thousands, except share and per share data)** |  |
| Common shares of Susquehanna at September 30, 2025 | 2841314 |
| Exchange ratio | 0.8 |
|  | 2273051 |
| Less: impact of fractional shares | (103) |
| C&N shares issued | 2272948 |
| Price per share of C&N common stock (average of the high and low trading price on October 1, 2025) | $19.64 |
| Value of C&N stock consideration | $44641 |
| Cash paid in lieu of fractional shares | 2 |
| Total merger consideration | $44643 |

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| | | | |
|:---|:---|:---|:---|
|  | **Susquehanna** | **Fair** |  |
|  | **Book** | **Value** | **Fair** |
|  | **Value** | **Adjustments** | **Value** |
| Merger consideration |  |  | $44643 |
| Recognized amounts of identifiable assets acquired liabilities assumed: |  |  |  |
| &nbsp;&nbsp;Cash and due from banks | $6080 | $0 | $6080 |
| &nbsp;&nbsp;Available-for-sale debt securities | 148243 | (627) | 147616 |
| &nbsp;&nbsp;Loans, net of allowance for credit losses | 396851 | (10092) | 386759 |
| &nbsp;&nbsp;Bank-owned life insurance | 7953 | 0 | 7953 |
| &nbsp;&nbsp;Bank premises and equipment, net | 10163 | (3210) | 6953 |
| &nbsp;&nbsp;Core deposit intangibles, net | 0 | 10222 | 10222 |
| &nbsp;&nbsp;Deferred tax asset, net | 4458 | 914 | 5372 |
| &nbsp;&nbsp;Other assets | 13634 | 0 | 13634 |
| &nbsp;&nbsp;Total identifiable assets acquired | 587382 | (2793) | 584589 |
| Deposits | 501037 | 451 | 501488 |
| Borrowed funds | 45800 | 0 | 45800 |
| Other liabilities | 4158 | 0 | 4158 |
| &nbsp;&nbsp;Total liabilities assumed | 550995 | 451 | 551446 |
| &nbsp;&nbsp;Total identifiable net assets | 36387 | (3244) | 33143 |
| Goodwill | 0 | 11500 | &nbsp;&nbsp;&nbsp;&nbsp;11500 |
| Total Allocation | $36387 | $8256 | $44643 |

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&nbsp;&nbsp;&nbsp;&nbsp;(2) The pro forma adjustment to available-for-sale debt securities reflects the impact of an updated assessment by C&N's management. Adjustments to the statements of income include prospective reclassification of the unrealized loss of $17.9 million to an amortizing discount, amortized into income based on the expected life of the securities.

In October 2025, C&N sold most of the available-for-sale debt securities acquired from Susquehanna. Proceeds from the sales totaled $143.2 million with no realized gain or loss on the sales. Proceeds were primarily used to purchase available-for-sale debt securities and to pay off Susquehanna's short-term borrowing of $45.8 million at September 30, 2025.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(3) The pro forma adjustments to loans receivable and the allowance for credit losses (ACL) on loans as of September 30, 2025 are as follows: (i) interest rate-related reduction of $7.4 million, or 1.8% of Susquehanna's total loans receivable (yield mark); (ii) gross credit-related reduction of $5.9 million, or 1.5% of Susquehanna's total loans receivable, including $2.3 million on loans not considered to be Purchased Credit Deteriorated (PCD) and $3.6 million on loans preliminarily evaluated as PCD; (iii) increase in loans receivable and the ACL of $3.6 million, representing a gross up of PCD loans; (iv) elimination of Susquehanna's ACL of $3.2 million; and (v) an assumed increase in the ACL of $4.1 million that would be recorded subsequent to the acquisition through a Day 1 charge to the provision for credit losses which is included in the unaudited pro forma combined condensed consolidated statement of income for the year ended December 31, 2024. The pro forma adjustment to interest and fees on loans includes accretion of the credit risk fair value adjustment on non-PCD loans and the interest rate-related fair value adjustment, assuming an average life of the portfolio of 4.7 years. C&N is in the process of updating the analysis of the fair value of loans as of the merger completion date, including updated assessments of credit quality and the impact of changes in interest rates.

In November 2025, the FASB issued Accounting Standards Update 2025-08, Financial Instruments – Credit Losses (Topic 326). ASU 2025-08 expands the use of the gross up method to certain acquired loans beyond purchased financial assets with credit deterioration. The ASU applies the gross-up method to acquired non-PCD assets that are purchased seasoned loans ultimately eliminating the Day 1 credit loss expense and reducing interest income recognized in subsequent periods. The ASU is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2026 and is applied on a prospective basis. Early adoption is permitted, and C&N's management expects to adopt the ASU in accounting for this business combination in the fourth quarter of 2025. If the ASU is adopted early, the impact would be to remove the Day 1 provision for credit losses of $4.1 million and instead gross up loans and the allowance for credit losses, and reduce goodwill, recorded in the acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The pro forma balance sheet adjustment to bank premises and equipment is based primarily on a comparison of third-party appraisals to Susquehanna's net book values of the real estate for its branch locations. The pro forma statements of income include, within net occupancy and equipment expense, a decrease in depreciation expense attributable to the assumed fair value adjustments of $103,000 in the year ended December 31, 2024 and $77,000 in the nine months ended September 30, 2025. C&N is in the process of completing the analysis of the fair value of bank premises and equipment as of the merger completion date.

&nbsp;&nbsp;&nbsp;&nbsp;(5) The estimated value of the core deposit intangible was determined based on a preliminary assessment of Susquehanna's core deposits, including assessment of financial, economic, market and other conditions as of the merger date. For this purpose, core deposits include all of Susquehanna's deposits at September 30, 2025, except for time deposits and public funds. Amortization of the core deposit intangible asset, which is included in other noninterest expense in the unaudited pro forma condensed consolidated statements of income, is based on the estimated useful life of each category of core deposit based on accelerated methods consistent with account run-off assumptions. C&N is in the process of completing an analysis of the core deposit intangible as of the merger completion date.

&nbsp;&nbsp;&nbsp;&nbsp;(6) The pro forma adjustments to the deferred tax asset, net, reflect the impact of the fair value adjustments and recognition of the ACL on acquired non-PCD loans, at an assumed effective tax rate of 22%.

&nbsp;&nbsp;&nbsp;&nbsp;(7) The pro forma reduction in other assets reflects C&N's acquisition of shares of C&N common stock held by Susquehanna prior to the merger.

&nbsp;&nbsp;&nbsp;&nbsp;(8) The pro forma balance sheet adjustment to interest-bearing deposits reflects differences in interest rates, based on comparison of rates on Susquehanna's time deposits to market rates at September 30, 2025 for maturity dates corresponding to the maturity dates of Susquehanna's time deposits. The fair value adjustment is amortized over the estimated life of the applicable time deposits of 1.0 year.

&nbsp;&nbsp;&nbsp;&nbsp;(9) The pro forma increase in other liabilities includes the accrual of merger-related expenses, net of tax, of $5.1 million to be incurred by C&N, and the estimated direct costs to issue C&N stock in the merger of $200,000.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;(10) The pro forma adjustment to stockholders' equity includes the following components (in thousands):

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| | |
|:---|:---|
| Total estimated merger consideration, net of equity issuance costs and cash paid in lieu of issuing fractional shares | $44441 |
| Estimated C&N merger-related expenses, net of tax | (5081) |
| Treasury shares acquisition of C&N shares held by Susquehanna | (37) |
| ACL on acquired non-PCD loans, net of tax | (3198) |
| Less: retirement of Susquehanna's equity | (36387) |
| Net impact of transaction accounting adjustments on equity | $(262) |

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&nbsp;&nbsp;&nbsp;&nbsp;(11) The pro forma statement of income for the year ended December 31, 2024 includes an adjustment for C&N's estimated merger-related expenses to be incurred subsequent to September 30, 2025 totaling $6,453,000. C&N's estimated merger-related expenses include wages and benefit costs related to severance and similar matters, costs associated with data processing and other contract terminations and data conversion, legal and professional fees related to contract negotiations, acquisition and other matters, and other expenses directly related to the merger.

&nbsp;&nbsp;&nbsp;&nbsp;(12) The pro forma adjustment to the income tax provision reflects an assumed 22% tax rate on transaction adjustments except for certain merger-related expenses that are assumed to be nondeductible.

&nbsp;&nbsp;&nbsp;&nbsp;(13) Unaudited pro forma earnings per common share is calculated using C&N's historic weighted average common shares outstanding plus the common shares issued to Susquehanna's shareholders in the merger. The following table sets forth the calculation of unaudited pro forma earnings per common share for the year ended December 31, 2024 and the nine months ended September 30, 2025.

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| | | |
|:---|:---|:---|
| **(In Thousands, Except Share and Per Share Data)** |  | **Nine** |
|  | **Year** | **Months** |
|  | **Ended** | **Ended** |
|  | **December 31,** | **Sept. 30,** |
|  | **2024** | **2025** |
| Pro forma net income | $21167 | $19949 |
| Less: Dividends and undistributed earnings allocated to participating securities | (150) | (141) |
| Pro forma net income attributable to common shares | 21017 | 19808 |
| Weighted-average common shares outstanding: |  |  |
| &nbsp;&nbsp;C&N, historical | 15262504 | 15371733 |
| &nbsp;&nbsp;Shares issued to Susquehanna shareholders | 2272948 | 2272948 |
| Pro forma weighted-average common shares outstanding | 17535452 | 17644681 |
| Pro forma earnings per common share - basic and diluted | $1.20 | $1.12 |

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