EXHIBIT 99.2 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED EARNINGS INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	4TH		4TH
	QUARTER		QUARTER
	2022		2021
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	25,855	$	21,246	$	4,609	21.69	%
Interest Expense		3,563		1,530		2,033	132.88	%
Net Interest Income		22,292		19,716		2,576	13.07	%
Provision for Loan Losses		2,262		1,128		1,134	100.53	%
Net Interest Income After Provision for Loan Losses		20,030		18,588		1,442	7.76	%
Noninterest Income		6,110		6,416		(306)	(4.77)	%
Net Losses on Available-for-sale Debt Securities		(1)		(1)		0	0.00	%
Noninterest Expense		16,587		16,018		569	3.55	%
Income Before Income Tax Provision		9,552		8,985		567	6.31	%
Income Tax Provision		1,773		1,677		96	5.72	%
Net Income	$	7,779	$	7,308	$	471	6.44	%
Net Income Attributable to Common Shares (1)	$	7,711	$	7,256	$	455	6.27	%
PER COMMON SHARE DATA:
Net Income - Basic	$	0.50	$	0.46	$	0.04	8.70	%
Net Income - Diluted	$	0.50	$	0.46	$	0.04	8.70	%
Dividends Per Share	$	0.28	$	0.28	$	0.00	0.00	%
Number of Shares Used in Computation - Basic		15,374,579		15,630,094
Number of Shares Used in Computation - Diluted		15,377,161		15,635,892


	YEARS ENDED
	December 31,
	2022		2021
	(Current)		(Prior Year)		$ Incr. (Decr.)		% Incr. (Decr.)
Interest and Dividend Income	$	92,647	$	84,501	$	8,146	9.64	%
Interest Expense		9,519		6,562		2,957	45.06	%
Net Interest Income		83,128		77,939		5,189	6.66	%
Provision for Loan Losses		7,255		3,661		3,594	98.17	%
Net Interest Income After Provision for Loan Losses		75,873		74,278		1,595	2.15	%
Noninterest Income		24,412		25,857		(1,445)	(5.59)	%
Net Gains on Available-for-sale Debt Securities		20		24		(4)	(16.67)	%
Noninterest Expense		67,955		62,472		5,483	8.78	%
Income Before Income Tax Provision		32,350		37,687		(5,337)	(14.16)	%
Income Tax Provision		5,732		7,133		(1,401)	(19.64)	%
Net Income	$	26,618	$	30,554	$	(3,936)	(12.88)	%
Net Income Attributable to Common Shares (1)	$	26,381	$	30,313	$	(3,932)	(12.97)	%
PER COMMON SHARE DATA:
Net Income - Basic	$	1.71	$	1.92	$	(0.21)	(10.94)	%
Net Income - Diluted	$	1.71	$	1.92	$	(0.21)	(10.94)	%
Dividends Per Share	$	1.12	$	1.11	$	0.01	0.90	%
Number of Shares Used in Computation - Basic		15,455,432		15,765,639
Number of Shares Used in Computation - Diluted		15,458,531		15,771,955

(1)	Basic and diluted net income per common share are determined based on net income less earnings allocated to nonvested restricted shares with nonforfeitable dividends.

CONDENSED, CONSOLIDATED BALANCE SHEET DATA

(Dollars In Thousands)

(Unaudited)


	December 31,		December 31,
	2022		2021		$ Incr. (Decr.)		% Incr. (Decr.)
ASSETS
Cash & Due from Banks	$	55,048	$	104,948	$	(49,900)	(47.55)	%
Available-for-sale Debt Securities		498,033		517,679		(19,646)	(3.80)	%
Loans, Net		1,723,425		1,551,312		172,113	11.09	%
Bank-Owned Life Insurance		31,214		30,670		544	1.77	%
Bank Premises and Equipment, Net		21,574		20,683		891	4.31	%
Deferred Tax Asset, Net		20,884		5,887		14,997	254.75	%
Intangible Assets		55,382		55,821		(439)	(0.79)	%
Other Assets		48,747		40,648		8,099	19.92	%
TOTAL ASSETS	$	2,454,307	$	2,327,648	$	126,659	5.44	%

LIABILITIES
Deposits	$	1,997,593	$	1,925,060	$	72,533	3.77	%
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		142,409		29,845		112,564	377.16	%
Senior Notes, Net		14,765		14,701		64	0.44	%
Subordinated Debt, Net		24,607		33,009		(8,402)	(25.45)	%
Other Liabilities		25,608		23,628		1,980	8.38	%
TOTAL LIABILITIES		2,204,982		2,026,243		178,739	8.82	%

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated
Other Comprehensive (Loss) Income		299,203		296,379		2,824	0.95	%
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized (Losses) Gains on Available-for-sale Debt Securities		(50,370)		4,809		(55,179)	(1,147.41)	%
Defined Benefit Plans		492		217		275	126.73	%
TOTAL STOCKHOLDERS' EQUITY		249,325		301,405		(52,080)	(17.28)	%
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,454,307	$	2,327,648	$	126,659	5.44	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	FOR THE
	THREE MONTHS ENDED						%
	December 31,						INCREASE
	2022			2021			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	7,779		$	7,308		6.44	%
Return on Average Assets (Annualized)		1.29	%		1.25	%	3.20	%
Return on Average Equity (Annualized)		12.90	%		9.73	%	32.58	%


	AS OF OR FOR THE
	YEARS ENDED						%
	December 31,						INCREASE
	2022			2021			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	26,618		$	30,554		(12.88)	%
Return on Average Assets (Annualized)		1.12	%		1.32	%	(15.15)	%
Return on Average Equity (Annualized)		10.04	%		10.14	%	(0.99)	%

BALANCE SHEET HIGHLIGHTS
Total Assets	$	2,454,307		$	2,327,648		5.44	%
Available-for-Sale Debt Securities		498,033			517,679		(3.80)	%
Loans, Net		1,723,425			1,551,312		11.09	%
Allowance for Loan Losses		16,615			13,537		22.74	%
Deposits		1,997,593			1,925,060		3.77	%

OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	325,677		$	334,741		(2.71)	%
Trust Assets Under Management		1,063,615			1,232,919		(13.73)	%

STOCKHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.71		$	1.92		(10.94)	%
Net Income - Diluted	$	1.71		$	1.92		(10.94)	%
Dividends	$	1.12		$	1.11		0.90	%
Common Book Value	$	16.07		$	19.13		(16.00)	%
Tangible Common Book Value (a)	$	12.50		$	15.58		(19.77)	%
Market Value (Last Trade)	$	22.86		$	26.12		(12.48)	%
Market Value / Common Book Value		142.25	%		136.54	%	4.18	%
Market Value / Tangible Common Book Value		182.88	%		167.65	%	9.08	%
Price Earnings Multiple (Annualized)		13.37			13.60		(1.69)	%
Dividend Yield (Annualized)		4.90	%		4.25	%	15.29	%
Common Shares Outstanding, End of Period		15,518,819			15,759,090		(1.52)	%

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	AS OF OR FOR THE
	YEARS ENDED						%
	December 31,						INCREASE
	2022			2021			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (a)		8.08	%		10.81	%	(25.25)	%
Nonperforming Assets / Total Assets		1.04	%		0.94	%	10.64	%
Allowance for Loan Losses / Total Loans		0.95	%		0.87	%	9.20	%
Total Risk Based Capital Ratio (b)		15.79	%		18.21	%	(13.29)	%
Tier 1 Risk Based Capital Ratio (b)		13.48	%		15.22	%	(11.43)	%
Common Equity Tier 1 Risk Based Capital Ratio (b)		13.48	%		15.22	%	(11.43)	%
Leverage Ratio (b)		10.11	%		10.53	%	(3.99)	%

AVERAGE BALANCES
Average Assets	$	2,372,788		$	2,319,234		2.31	%
Average Equity	$	265,093		$	301,226		(12.00)	%

EFFICIENCY RATIO (c)
Net Interest Income on a Fully Taxable-Equivalent
Basis (c)	$	84,354		$	79,074		6.68	%
Noninterest Income		24,412			25,857		(5.59)	%
Total (1)	$	108,766		$	104,931		3.65	%
Noninterest Expense (2)	$	67,955		$	62,472		8.78	%
Efficiency Ratio = (2)/(1)		62.48	%		59.54	%	4.94	%

(a)Tangible common book value per share and tangible common equity as a percentage of tangible assets are non-U.S. GAAP ratios. Management believes this non-GAAP information is helpful in evaluating the strength of the Corporation's capital and in providing an alternative, conservative valuation of the Corporation's net worth. The ratios shown above are based on the following calculations of tangible assets and tangible common equity:


Total Assets	$	2,454,307	$	2,327,648
Less: Intangible Assets, Primarily Goodwill		(55,382)		(55,821)
Tangible Assets	$	2,398,925	$	2,271,827
Total Stockholders' Equity	$	249,325	$	301,405
Less: Intangible Assets, Primarily Goodwill		(55,382)		(55,821)
Tangible Common Equity (3)	$	193,943	$	245,584

Common Shares Outstanding, End of Period (4)		15,518,819		15,759,090
Tangible Common Book Value per Share = (3)/(4)	$	12.50	$	15.58

(b)Capital ratios for the most recent period are estimated.

(c)The efficiency ratio is a non-GAAP ratio that is calculated as shown above. For purposes of calculating the efficiency ratio, net interest income on a fully taxable-equivalent basis includes amounts of interest income on tax-exempt securities and loans that have been increased to a fully taxable-equivalent basis, using the Corporation's marginal federal income tax rate of 21%. A reconciliation of net interest income under U.S. GAAP as compared to net interest income as adjusted to a fully taxable-equivalent basis is provided in Exhibit 99.2 under the table “COMPARISON OF INTEREST INCOME AND EXPENSE”.

QUARTERLY CONDENSED, CONSOLIDATED

INCOME STATEMENT INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)


	For the Three Months Ended :
	December 31,		September 30,		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,
	2022		2022		2022		2022		2021		2021		2021		2021
Interest income	$	25,855	$	23,710	$	21,309	$	21,773	$	21,246	$	21,073	$	20,428	$	21,754
Interest expense		3,563		2,831		1,684		1,441		1,530		1,614		1,747		1,671
Net interest income		22,292		20,879		19,625		20,332		19,716		19,459		18,681		20,083
Provision for loan losses		2,262		3,794		308		891		1,128		1,530		744		259
Net interest income after provision for loan losses		20,030		17,085		19,317		19,441		18,588		17,929		17,937		19,824
Noninterest income		6,110		5,651		6,830		5,821		6,416		6,359		6,300		6,782
Net (losses) gains on securities		(1)		20		(1)		2		(1)		23		2		0
Noninterest expense		16,587		17,443		17,039		16,886		16,018		15,346		15,399		15,709
Income before income tax provision		9,552		5,313		9,107		8,378		8,985		8,965		8,840		10,897
Income tax provision		1,773		858		1,618		1,483		1,677		1,566		1,780		2,110
Net income	$	7,779	$	4,455	$	7,489	$	6,895	$	7,308	$	7,399	$	7,060	$	8,787
Net income attributable to common shares	$	7,711	$	4,416	$	7,419	$	6,835	$	7,256	$	7,336	$	6,999	$	8,722
Basic earnings per common share	$	0.50	$	0.29	$	0.48	$	0.44	$	0.46	$	0.47	$	0.44	$	0.55
Diluted earnings per common share	$	0.50	$	0.29	$	0.48	$	0.44	$	0.46	$	0.47	$	0.44	$	0.55

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)


	As of:
	Dec 31,		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
	2022		2022		2022		2022		2021		2021		2021		2021
ASSETS
Cash & Due from Banks	$	55,048	$	64,044	$	69,187	$	114,346	$	104,948	$	198,995	$	208,860	$	207,145
Available-for-Sale Debt Securities		498,033		487,980		526,837		532,913		517,679		437,857		391,881		366,376
Loans, Net		1,723,425		1,674,076		1,643,057		1,523,919		1,551,312		1,563,008		1,585,481		1,602,926
Bank-Owned Life Insurance		31,214		31,075		30,941		30,805		30,670		30,530		30,391		30,247
Bank Premises and Equipment, Net		21,574		21,881		21,829		21,169		20,683		20,526		20,620		20,740
Deferred Tax Asset, Net		20,884		22,327		16,331		11,818		5,887		5,128		3,408		3,530
Intangible Assets		55,382		55,492		55,602		55,711		55,821		55,955		56,088		56,222
Other Assets		48,747		43,305		46,934		39,690		40,648		42,897		42,334		46,409
TOTAL ASSETS	$	2,454,307	$	2,400,180	$	2,410,718	$	2,330,371	$	2,327,648	$	2,354,896	$	2,339,063	$	2,333,595

LIABILITIES
Deposits	$	1,997,593	$	2,039,595	$	1,964,270	$	1,960,952	$	1,925,060	$	1,940,141	$	1,916,809	$	1,923,925
Borrowed Funds - Federal Home Loan Bank and Repurchase Agreements		142,409		57,920		126,833		22,938		29,845		40,555		46,450		60,230
Senior Notes, Net		14,765		14,749		14,733		14,717		14,701		14,685		14,670		0
Subordinated Debt, Net		24,607		24,580		24,553		33,031		33,009		32,988		32,967		16,534
Other Liabilities		25,608		24,547		21,710		22,525		23,628		27,125		24,034		32,850
TOTAL LIABILITIES		2,204,982		2,161,391		2,152,099		2,054,163		2,026,243		2,055,494		2,034,930		2,033,539

STOCKHOLDERS' EQUITY
Common Stockholders' Equity, Excluding Accumulated Other Comprehensive (Loss) Income		299,203		295,258		294,621		296,386		296,379		292,997		294,857		293,097
Accumulated Other Comprehensive (Loss) Income:
Net Unrealized (Losses) Gains on Available-for-sale Securities		(50,370)		(56,766)		(36,307)		(20,492)		4,809		6,300		9,167		6,847
Defined Benefit Plans		492		297		305		314		217		105		109		112
TOTAL STOCKHOLDERS' EQUITY		249,325		238,789		258,619		276,208		301,405		299,402		304,133		300,056
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	2,454,307	$	2,400,180	$	2,410,718	$	2,330,371	$	2,327,648	$	2,354,896	$	2,339,063	$	2,333,595

AVAILABLE-FOR-SALE DEBT SECURITIES

(In Thousands)


	December 31, 2022				September 30, 2022				December 31, 2021
	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of the U.S. Treasury	$	35,166	$	31,836	$	35,155	$	31,599	$	25,058	$	24,912
Obligations of U.S. Government agencies		25,938		23,430		23,939		21,389		23,936		24,091
Bank holding company debt securities		28,945		25,386		28,944		25,432		18,000		17,987
Obligations of states and political subdivisions:
Tax-exempt		146,149		132,623		146,847		126,710		143,427		148,028
Taxable		68,488		56,812		69,902		58,317		72,182		72,765
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		112,782		99,941		116,833		102,739		98,048		98,181
Residential collateralized mortgage obligations		44,868		40,296		44,075		39,632		44,015		44,247
Commercial mortgage-backed securities		91,388		79,686		89,349		77,383		86,926		87,468
Private label commercial mortgage-backed securities		8,070		8,023		4,793		4,779		0		0
Total Available-for-Sale Debt Securities	$	561,794	$	498,033	$	559,837	$	487,980	$	511,592	$	517,679

SUMMARY OF LOANS BY TYPE

(Excludes Loans Held for Sale)

(In Thousands)


	December 31,		September 30,		December 31,
	2022		2022		2021
Commercial:
Commercial loans secured by real estate	$	682,249	$	658,861	$	569,840
Commercial and industrial		178,271		172,258		159,073
Paycheck Protection Program - 1st Draw		5		24		1,356
Paycheck Protection Program - 2nd Draw		163		2,011		25,508
Political subdivisions		90,719		83,725		81,301
Commercial construction and land		73,963		76,194		60,579
Loans secured by farmland		12,950		12,839		11,121
Multi-family (5 or more) residential		55,886		59,315		50,089
Agricultural loans		2,435		2,492		2,351
Other commercial loans		14,857		14,636		17,153
Total commercial		1,111,498		1,082,355		978,371
Residential mortgage:
Residential mortgage loans - first liens		509,782		492,854		483,629
Residential mortgage loans - junior liens		24,949		24,208		23,314
Home equity lines of credit		43,798		42,972		39,252
1-4 Family residential construction		30,577		29,950		23,151
Total residential mortgage		609,106		589,984		569,346
Consumer		19,436		17,907		17,132
Total		1,740,040		1,690,246		1,564,849
Less: allowance for loan losses		(16,615)		(16,170)		(13,537)
Loans, net	$	1,723,425	$	1,674,076	$	1,551,312

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(In Thousands)


	3 Months		3 Months		Year		Year
	Ended		Ended		Ended		Ended
	December 31,		September 30,		December 31,		December 31,
	2022		2022		2022		2021
Balance, beginning of period	$	16,170	$	14,547	$	13,537	$	11,385
Charge-offs		(1,828)		(2,196)		(4,245)		(1,575)
Recoveries		11		25		68		66
Net charge-offs		(1,817)		(2,171)		(4,177)		(1,509)
Provision for loan losses		2,262		3,794		7,255		3,661
Balance, end of period	$	16,615	$	16,170	$	16,615	$	13,537

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS

AND TROUBLED DEBT RESTRUCTURINGS (TDRs)

(Dollars In Thousands)


	December 31,			September 30,			December 31,
	2022			2022			2021
Impaired loans with a valuation allowance	$	3,460		$	3,396		$	6,540
Impaired loans without a valuation allowance		14,871			6,130			2,636
Purchased credit impaired loans		1,027			3,783			6,558
Total impaired loans	$	19,358		$	13,309		$	15,734

Total loans past due 30-89 days and still accruing	$	7,079		$	3,041		$	5,106

Nonperforming assets:
Purchased credit impaired loans	$	1,027		$	3,783		$	6,558
Other nonaccrual loans		22,058			13,176			12,441
Total nonaccrual loans		23,085			16,959			18,999
Total loans past due 90 days or more and still accruing		2,237			3,499			2,219
Total nonperforming loans		25,322			20,458			21,218
Foreclosed assets held for sale (real estate)		275			454			684
Total nonperforming assets	$	25,597		$	20,912		$	21,902

Loans subject to troubled debt restructurings (TDRs):
Performing	$	571		$	231		$	288
Nonperforming		3,856			3,960			5,517
Total TDRs	$	4,427		$	4,191		$	5,805

Total nonperforming loans as a % of total loans		1.46	%		1.21	%		1.36	%
Total nonperforming assets as a % of assets		1.04	%		0.87	%		0.94	%
Allowance for loan losses as a % of total loans		0.95	%		0.96	%		0.87	%
Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (a)		1.06	%		1.08	%		1.08	%
Allowance for loan losses as a % of nonperforming loans		65.61	%		79.04	%		63.80	%

(a) Credit adjustment on purchased non-impaired loans at end of period	$	1,840		$	2,095		$	3,335
Allowance for loan losses		16,615			16,170			13,537
Total credit adjustment on purchased non-impaired loans at end of period and allowance for loan losses (1)	$	18,455		$	18,265		$	16,872
Total loans receivable	$	1,740,040		$	1,690,246		$	1,564,849
Credit adjustment on purchased non-impaired loans at end of period		1,840			2,095			3,335
Total (2)	$	1,741,880		$	1,692,341		$	1,568,184
Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment (1)/(2)		1.06	%		1.08	%		1.08	%

ADJUSTMENTS TO GROSS AMORTIZED COST OF LOANS

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2022		2022		2021		2022		2021
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period	$	(861)	$	(866)	$	(373)	$	(637)	$	718
(Amortization) Accretion recognized in interest income		(55)		5		(264)		(279)		(1,355)
Adjustments to gross amortized cost of loans at end of period	$	(916)	$	(861)	$	(637)	$	(916)	$	(637)
Credit Adjustment on Non-impaired Loans
Adjustments to gross amortized cost of loans at beginning of period	$	(2,095)	$	(2,403)	$	(3,836)	$	(3,335)	$	(5,979)
Accretion recognized in interest income		255		308		501		1,495		2,644
Adjustments to gross amortized cost of loans at end of period	$	(1,840)	$	(2,095)	$	(3,335)	$	(1,840)	$	(3,335)

PURCHASED CREDIT IMPAIRED (PCI) LOANS

(In Thousands)


	December 31,		September 30,		December 31,
	2022		2022		2021
Outstanding balance	$	1,833	$	5,564	$	9,802
Carrying amount		1,027		3,783		6,558

COMPARISON OF INTEREST INCOME AND EXPENSE

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2022		2022		2021		2022		2021
INTEREST INCOME
Interest-bearing due from banks	$	310	$	176	$	88	$	645	$	318
Available-for-sale debt securities:
Taxable		2,217		2,138		1,510		8,360		5,114
Tax-exempt		910		947		890		3,721		3,357
Total available-for-sale debt securities		3,127		3,085		2,400		12,081		8,471
Loans receivable:
Taxable		21,979		19,967		16,810		77,641		68,019
Paycheck Protection Program -1st Draw		1		4		187		54		3,476
Paycheck Protection Program - 2nd Draw		58		114		1,457		904		3,054
Tax-exempt		675		635		593		2,471		2,232
Total loans receivable		22,713		20,720		19,047		81,070		76,781
Other earning assets		8		38		13		77		66
Total Interest Income		26,158		24,019		21,548		93,873		85,636

INTEREST EXPENSE
Interest-bearing deposits:
Interest checking		844		487		211		1,833		897
Money market		818		639		261		2,088		1,156
Savings		66		66		61		257		231
Time deposits		898		780		447		2,460		2,254
Total interest-bearing deposits		2,626		1,972		980		6,638		4,538
Borrowed funds:
Short-term		127		179		1		429		23
Long-term - FHLB advances		460		332		69		896		399
Senior notes, net		120		119		118		477		293
Subordinated debt, net		230		229		362		1,079		1,309
Total borrowed funds		937		859		550		2,881		2,024
Total Interest Expense		3,563		2,831		1,530		9,519		6,562

Net Interest Income	$	22,595	$	21,188	$	20,018	$	84,354	$	79,074

Note: Interest income from tax-exempt securities and loans has been adjusted to a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%. The following table is a reconciliation of net interest income under U.S. GAAP as compared to net interest income as adjusted to a fully taxable-equivalent basis.


(In Thousands)	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2022		2022		2021		2022		2021
Net Interest Income Under U.S. GAAP	$	22,292	$	20,879	$	19,716	$	83,128	$	77,939
Add: fully taxable-equivalent interest income adjustment from tax-exempt securities		167		179		179		720		673
Add: fully taxable-equivalent interest income adjustment from tax-exempt loans		136		130		123		506		462
Net Interest Income as adjusted to a fully taxable-equivalent basis	$	22,595	$	21,188	$	20,018	$	84,354	$	79,074

ANALYSIS OF AVERAGE DAILY BALANCES AND RATES

(Dollars in Thousands)


	3 Months				3 Months				3 Months
	Ended		Rate of		Ended		Rate of		Ended		Rate of
	12/31/2022		Return/		9/30/2022		Return/		12/31/2021		Return/
	Average		Cost of		Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds %		Balance		Funds %
EARNING ASSETS
Interest-bearing due from banks	$	40,288	3.05	%	$	34,465	2.03	%	$	152,950	0.23	%
Available-for-sale debt securities, at amortized cost:
Taxable		415,538	2.12	%		414,147	2.05	%		325,682	1.84	%
Tax-exempt		146,466	2.46	%		150,773	2.49	%		140,776	2.51	%
Total available-for-sale debt securities		562,004	2.21	%		564,920	2.17	%		466,458	2.04	%
Loans receivable:
Taxable		1,609,563	5.42	%		1,582,245	5.01	%		1,431,174	4.66	%
Paycheck Protection Program - 1st Draw		14	28.34	%		34	46.68	%		2,702	27.46	%
Paycheck Protection Program - 2nd Draw		1,030	22.34	%		4,661	9.70	%		37,320	15.49	%
Tax-exempt		88,583	3.02	%		87,330	2.88	%		83,197	2.83	%
Total loans receivable		1,699,190	5.30	%		1,674,270	4.91	%		1,554,393	4.86	%
Other earning assets		1,048	3.03	%		3,925	3.84	%		1,953	2.64	%
Total Earning Assets		2,302,530	4.51	%		2,277,580	4.18	%		2,175,754	3.93	%
Cash		23,154				23,731				22,850
Unrealized (loss) gain on securities		(70,583)				(44,559)				7,249
Allowance for loan losses		(16,612)				(14,914)				(12,980)
Bank-owned life insurance		31,127				30,991				30,587
Bank premises and equipment		21,752				21,874				20,678
Intangible assets		55,433				55,547				55,887
Other assets		64,341				57,012				45,035
Total Assets	$	2,411,142			$	2,407,262			$	2,345,060

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	478,012	0.70	%	$	442,647	0.44	%	$	428,154	0.20	%
Money market		427,378	0.76	%		438,770	0.58	%		446,930	0.23	%
Savings		262,269	0.10	%		261,422	0.10	%		241,352	0.10	%
Time deposits		295,920	1.20	%		298,628	1.04	%		292,973	0.61	%
Total interest-bearing deposits		1,463,579	0.71	%		1,441,467	0.54	%		1,409,409	0.28	%
Borrowed funds:
Short-term		14,229	3.54	%		33,970	2.09	%		2,177	0.18	%
Long-term - FHLB advances		62,998	2.90	%		51,628	2.55	%		35,608	0.77	%
Senior notes, net		14,757	3.23	%		14,741	3.20	%		14,690	3.19	%
Subordinated debt, net		24,594	3.71	%		24,566	3.70	%		32,918	4.36	%
Total borrowed funds		116,578	3.19	%		124,905	2.73	%		85,393	2.56	%
Total Interest-bearing Liabilities		1,580,157	0.89	%		1,566,372	0.72	%		1,494,802	0.41	%
Demand deposits		563,567				557,116				523,817
Other liabilities		26,171				23,588				25,951
Total Liabilities		2,169,895				2,147,076				2,044,570
Stockholders' equity, excluding accumulated other comprehensive (loss) income		296,717				295,086				294,659
Accumulated other comprehensive (loss) income		(55,470)				(34,900)				5,831
Total Stockholders' Equity		241,247				260,186				300,490
Total Liabilities and Stockholders' Equity	$	2,411,142			$	2,407,262			$	2,345,060
Interest Rate Spread			3.62	%			3.46	%			3.52	%
Net Interest Income/Earning Assets			3.89	%			3.69	%			3.65	%

Total Deposits (Interest-bearing and Demand)	$	2,027,146			$	1,998,583			$	1,933,226

(1)Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

(2)	Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

(3)	Rates of return on earning assets and costs of funds have been presented on an annualized basis.

ANALYSIS OF AVERAGE DAILY BALANCES AND RATES

(Dollars in Thousands)


	Year				Year
	Ended		Rate of		Ended		Rate of
	12/31/2022		Return/		12/31/2021		Return/
	Average		Cost of		Average		Cost of
	Balance		Funds %		Balance		Funds%
EARNING ASSETS
Interest-bearing due from banks	$	51,407	1.25	%	$	156,152	0.20	%
Available-for-sale debt securities, at amortized cost:
Taxable		410,033	2.04	%		262,880	1.95	%
Tax-exempt		148,344	2.51	%		127,283	2.64	%
Total available-for-sale debt securities		558,377	2.16	%		390,163	2.17	%
Loans receivable:
Taxable		1,533,417	5.06	%		1,426,150	4.77	%
Paycheck Protection Program - 1st Draw		447	12.08	%		44,735	7.77	%
Paycheck Protection Program - 2nd Draw		7,959	11.36	%		52,917	5.77	%
Tax-exempt		86,271	2.86	%		72,954	3.06	%
Total loans receivable		1,628,094	4.98	%		1,596,756	4.81	%
Other earning assets		2,321	3.32	%		2,404	2.75	%
Total Earning Assets		2,240,199	4.19	%		2,145,475	3.99	%
Cash		22,685				24,132
Unrealized (loss) gain on securities		(38,784)				10,676
Allowance for loan losses		(14,962)				(12,354)
Bank-owned life insurance		30,925				30,373
Bank premises and equipment		21,559				20,814
Intangible assets		55,599				56,086
Other assets		55,567				44,032
Total Assets	$	2,372,788			$	2,319,234

INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	443,107	0.41	%	$	399,130	0.22	%
Money market		443,084	0.47	%		433,508	0.27	%
Savings		257,156	0.10	%		228,411	0.10	%
Time deposits		285,264	0.86	%		327,816	0.69	%
Total interest-bearing deposits		1,428,611	0.46	%		1,388,865	0.33	%
Borrowed funds:
Short-term		21,766	1.97	%		6,269	0.37	%
Long-term - FHLB advances		40,194	2.23	%		44,026	0.91	%
Senior notes, net		14,733	3.24	%		9,129	3.21	%
Subordinated debt, net		27,116	3.98	%		27,399	4.78	%
Total borrowed funds		103,809	2.78	%		86,823	2.33	%
Total Interest-bearing Liabilities		1,532,420	0.62	%		1,475,688	0.44	%
Demand deposits		551,801				516,535
Other liabilities		23,474				25,785
Total Liabilities		2,107,695				2,018,008
Stockholders' equity, excluding accumulated other comprehensive (loss) income		295,447				292,683
Accumulated other comprehensive (loss) income		(30,354)				8,543
Total Stockholders' Equity		265,093				301,226
Total Liabilities and Stockholders' Equity	$	2,372,788			$	2,319,234
Interest Rate Spread			3.57	%			3.55	%
Net Interest Income/Earning Assets			3.77	%			3.69	%

Total Deposits (Interest-bearing and Demand)	$	1,980,412			$	1,905,400

(1)Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

(2)	Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

(3)	Rates of return on earning assets and costs of funds have been presented on an annualized basis.

COMPARISON OF NONINTEREST INCOME

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2022		2022		2021		2022		2021
Trust revenue	$	1,749	$	1,744	$	1,980	$	6,994	$	7,234
Brokerage and insurance revenue		507		696		468		2,291		1,860
Service charges on deposit accounts		1,357		1,105		1,296		5,019		4,633
Interchange revenue from debit card transactions		1,098		1,031		1,001		4,148		3,855
Net gains from sales of loans		24		131		642		757		3,428
Loan servicing fees, net		203		189		147		960		694
Increase in cash surrender value of life insurance		140		133		139		545		573
Other noninterest income		1,032		622		743		3,698		3,580
Total noninterest income, excluding realized gains on securities, net	$	6,110	$	5,651	$	6,416	$	24,412	$	25,857

COMPARISON OF NONINTEREST EXPENSE

(In Thousands)


	Three Months Ended						Year Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2022		2022		2021		2022		2021
Salaries and employee benefits	$	10,135	$	10,826	$	9,782	$	41,833	$	37,603
Net occupancy and equipment expense		1,316		1,498		1,244		5,533		4,984
Data processing and telecommunications expenses		1,744		1,719		1,561		6,806		5,903
Automated teller machine and interchange expense		473		397		384		1,601		1,433
Pennsylvania shares tax		493		487		488		1,956		1,951
Professional fees		515		521		560		2,005		2,243
Other noninterest expense		1,911		1,995		1,999		8,221		8,355
Total noninterest expense	$	16,587	$	17,443	$	16,018	$	67,955	$	62,472