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C&N ANNOUNCES SECOND QUARTER 2014 UNAUDITED FINANCIAL RESULTS

Posted Monday, 14 July 2014 09:20 | Filed under C&N News


WELLSBORO, PA – Citizens & Northern Corporation (C&N) has announced
its unaudited, consolidated financial results for the three-month and
six-month periods ended June 30, 2014.

Second quarter 2014 net income of $4,163,000, or $0.33 per basic and
diluted share, was down slightly from $0.35 per basic share and $0.34
per diluted share in the first quarter 2014 and down from $0.40 per
basic and diluted share in the second quarter 2013.  Net income for the
six months ended June 30, 2014 totaled $8,451,000, or $0.68 per basic
and diluted share, representing an annualized return on average assets
of 1.38% and an annualized return on average equity of 9.16%.  Net
income for the first six months of 2014 was down from $0.78 per share
for the first six months of 2013.

Highlights related to C&N’s earnings results were as follows:

● Net interest income totaled $10,273,000 in the second quarter 2014,
up from $10,118,000 in the first quarter 2014 and down 6.1% from
$10,940,000 in the second quarter 2013.  For the first six months of
2014, net interest income of $20,391,000 was down $1,596,000 (7.3%) from
the first six months of 2013.  In 2013 and the first six months of 2014,
yields earned on securities and loans have fallen by more than interest
rates paid on deposits and borrowings.  Also, the average balance of
loans outstanding was $38.2 million (5.7%) lower in the first six months
of 2014 as compared to the first six months of 2013.  The net interest
margin was 3.84% in the second quarter 2014, down from 3.89% in the
first quarter 2014.  For the first six months of 2014, the net interest
margin was 3.86% as compared to 4.16% for the first six months of 2013.

● The provision for loan losses was $446,000 in the second quarter
2014 as compared to a credit (reduction in expense) of ($311,000) in the
first quarter 2014 and a provision of $66,000 in the second quarter
2013.  For the first six months of 2014, the provision for loan losses
totaled $135,000 as compared to a provision of $249,000 for the first
six months of 2013.  The higher provision for loan losses in the second
quarter 2014 included an increase in the collectively determined portion
of the allowance for loan losses as a result of an increased level of
net charge-offs.   C&N recorded net charge-offs totaling $1,522,000 in
the second quarter 2014, including a charge-off of $1,486,000 related to
one commercial loan relationship for which a specific allowance had been
established in previous quarters.

● Noninterest revenue totaled $3,980,000 in the second quarter 2014,
up $229,000 from the first quarter 2014 but $211,000 lower than in the
second quarter 2013.  For the first six months of 2014, noninterest
revenue was $303,000 (3.8%) lower than in the first six months of 2013.
Gains from sales of residential mortgage loans totaled $416,000 in the
first six months of 2014, down from $1,056,000 in the first six months
of 2013, as volume fell mainly because of higher interest rates.  Total
Trust and brokerage revenue of $2,654,000 in the first six months of
2014 was $284,000 (12.0%) higher than the total in the first six months
of 2013.


● Realized gains from available-for-sale securities totaled $103,000
in the second quarter 2014 as compared to $31,000 in the first quarter
2014 and $100,000 in the second quarter 2013.  In the first six months
of 2014, realized gains from securities totaled $134,000.  In
comparison, in the first six months of 2013, C&N generated gains from
sales of securities totaling $1,259,000 and also incurred losses from
prepayment of borrowings of $1,023,000.

● Noninterest expenses, excluding losses from prepayment of
borrowings, totaled $8,347,000 in the second
quarter 2014, down from
$8,524,000 in the first quarter 2014 and $8,520,000 in the second
quarter 2013.    Pensions and other employee benefit costs were $166,000
lower in the second quarter 2014 than in the first quarter 2013, mainly
due to the timing of payroll taxes and other payroll-related expenses
that are typically highest in the first quarter of each year.  In the
first six months of 2014, total noninterest expenses, excluding losses
from prepayment of borrowings, were $202,000 (1.2%) lower than in the
first six months of 2013.  The reduction in noninterest expenses in the
first six months of 2014 included decreases in professional fees of
$326,000 and ATM and interchange processing expense of $155,000, while
pensions and other employee benefit expenses increased $183,000, mainly
due to higher health care costs, and occupancy expenses increased
$123,000 due to higher weather-related maintenance expenses.            


Other Information:
Changes in other unaudited financial information are as follows:

● Total assets amounted to $1,256,205,000 at June 30, 2014, up from
$1,235,139,000 at March 31, 2014 and $1,228,344,000 at June 30, 2013.

● Net loans outstanding (excluding mortgage loans held for sale) were
$614,347,000 at June 30, 2014, down from $617,475,000 at March 31, 2014
and down $33.4 million (5.2%) from $647,772,000 at June 30, 2013.

● The outstanding balance of residential mortgages originated by C&N
and sold to third parties, with servicing retained, totaled $150,725,000
at June 30, 2014, up from $147,391,000 at March 31, 2014 and
$126,489,000 at June 30, 2013.

● Total nonperforming assets as a percentage of assets was 1.44% at
June 30, 2014, the same as at March 31, 2014 and up from 0.80% at June
30, 2013.  The increase in this ratio has resulted mainly from
classification of two large commercial loans as nonaccrual.

● Deposits and repo sweep accounts totaled $983,876,000 at June 30,
2014, up from $966,563,000 at March 31, 2014 and $955,156,000 at June
30, 2013.

● Total shareholders’ equity was $189,173,000 at June 30, 2014, up
from $184,762,000 at March 31, 2014 and $179,361,000 at June 30, 2013.
Tangible common equity as a percentage of tangible assets was 14.24% at
June 30, 2014, up from 13.76% a year earlier.

● Assets under management by C&N’s Trust and Financial Management
Group amounted to $824,279,000 at June 30, 2014, an increase of 13.3%
from a year earlier, reflecting the effect of new accounts as well as
net appreciation in asset values.

Citizens & Northern Corporation is the parent company of Citizens &
Northern Bank, a local, independent community bank providing complete
financial, investment and insurance services through 26 full service
offices throughout Tioga, Bradford, Sullivan, Lycoming, Potter, Cameron
and McKean counties in Pennsylvania and in Canisteo and South Hornell,
NY. C&N can be found on the worldwide web at www.cnbankpa.com. The
Company’s stock is listed on NASDAQ Capital Market Securities under
the symbol CZNC.

Safe Harbor Statement: Except for historical information contained
herein, the matters discussed in this release are forward-looking
statements.  Investors are cautioned that all forward-looking statements
involve risks and uncertainty, including without limitation, the
following: changes in monetary and fiscal policies of the Federal
Reserve Board and the U.S. Government, particularly related to changes
in interest rates; changes in general economic conditions; legislative
or regulatory changes; downturn in demand for loan, deposit and other
financial services in the Corporation’s market area; increased
competition from other banks and non-bank providers of financial
services; technological changes and increased technology-related costs;
changes in management’s assessment of realization of securities and
other assets; and changes in accounting principles, or the application
of generally accepted accounting principles.  Citizens & Northern
disclaims
any intention or obligation to publicly update or revise any
forward-looking statements, whether as a result of events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

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WELLSBORO, PA – Six Tioga County students have been named recipients of scholarships from the William Bowen Copp and Graydon S. Copp Agriculture Education Trust. The 2014 awards totaled $76,000.
 
The Scholarship Committee hosted a luncheon for scholarship recipients and their parents at the Penn Wells Hotel in Wellsboro.
 
The 2014 recipients include:
 
Debra Bieser, daughter of Ernie and Jeanine Bieser of Westfield, PA.  A graduate of Cowanesque Valley High School, she plans to attend Delaware Valley College majoring in large animal science.
 
Samantha Swarner, daughter of Lloyd and Mary Swarner of Sabinsville, PA. A graduate of Cowanesque Valley High School, she plans to attend SUNY Cobleskill , NY majoring in animal
science.
 
Simone Lichty, daughter of David and Ann Lichty of Covington, PA. A graduate of Mansfield Jr-Sr High School, she plans to attend Baptist Bible College majoring in Business Administration.
 
Harley Heichel, daughter of Chris and Peggy Heichel of Wellsboro, PA. A graduate of Wellsboro Area High School, she plans to attend Pennsylvania College of Technology majoring in Forestry.
 
Cassie Frederick, daughter of Robert and Elisa Frederick of Blossburg, PA. A graduate of North Penn Jr. Sr.  High School, she plans to attend Clarion University of PA majoring in Environmental Biology.
 
Devin Remley, son of Drew and Lisa Remley of Roaring Branch, PA. A graduate of Liberty Jr. Sr. High School, he plans to attend The College of Agricultural Sciences at Penn State University, Hazelton, majoring in Animal Science/Agronomy.
 
     The Copp trust was created under the Last Will and Testament of Graydon S. Copp, who died July 7, 2002. He and his brother, William Bowen Copp, operated a farm in Charleston and Covington Townships in Tioga County.
 
   “Graydon’s generosity will continue for a long time, as Graydon’s intent for this trust is to provide scholarships to well-deserving Tioga County, PA high school seniors who pursue high education in an agricultural field,” said Deborah Scott, Citizens & Northern Bank Executive Vice President and Trust Officer.
 
     Scott said the field has a broad spectrum of possibilities and might include education in the field of animal sciences, agricultural business management, bio-resource, crop and soil science, fisheries and wildlife, food science and technology and general agriculture to name a few.
 
     The scholarship recipients were chosen by the Scholarship Committee, which consists of the Trustee and the superintendents from each school district in Tioga County. The Committee determines the number of recipients and amounts awarded annually. The scholarship awards may be used to help pay tuition, books and room and board charges. Citizens & Northern Bank as Trustee invests and manages the funds in the account and administrates the scholarship application and distribution process.
 
    Applicants for the scholarship are sought each year, with the deadline being April 15th annually. Applicants must be high school seniors accepted to accredited colleges or universities in programs leading to degrees in curriculums directly related to agriculture. In addition, applications must have grade point averages of at least 2.0, have financial need and must have been Tioga County, PA residents for at least six months.
 
     For more information on this scholarship or to obtain an application, interested students should contact Citizens & Northern Bank’s Trust and Financial Management Group at 1-800-487-8784 or their high school guidance counselor.
 
     The C&N Trust and Financial Management Group, a division of Citizens & Northern Bank, maintains offices in Wellsboro, Sayre, Towanda, Williamsport, Coudersport and Emporium, in Pennsylvania and Canisteo in New York. The Division, founded in 1960, provides a wide range of investment, trust and retirement plan services to individuals and organizations.
 


Copp Scholarship recipients, front row, from left, Debra Bieser, Harley Heichel, Devin Remley and Cassie Frederick, are congratulated by, back row, from left, Chris Morral, Wellsboro Area School District Superintendent; Brian Tevlin, Vice President and Regional Manager of Financial Services with the C&N Trust and Financial Management Group; and Bill David, Mansfield High School Principal, representing the Southern Tioga School District. Absent from the photo were Diana Barnes, Northern Tioga School District Superintendent; Samantha Swarner, recipient from Cowanesque Valley High School and Simone Lichty, shown below.

 


Simone Lichty, Mansfield Copp Scholarship winner.

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Twelve C&N Employees Earn Service Awards

Posted Thursday, 05 June 2014 10:27 | Filed under C&N News

WELLSBORO, PA - Twelve Citizens & Northern Bank employees have been recognized for a combined 225 years of service to the financial institution.
Recognized during the April-June service awards luncheon were:

Brandy Allen, Electronic Banking Team Leader, Wellsboro – 10 years.

  • Jamie Butters, Trust Operations Manager, Wellsboro – 15 years.
  • Shelley D’Haene, Director of Alternate Delivery Channels, Wellsboro – 15 years.
  • Stan Dunsmore, Commercial Lending Regional Team Leader, Coudersport – 30 years.
  • Joan Grenell, Staff Accountant, Towanda – 35 years.
  • Karen Hall, Customer Services Representative, East Smithfield – 10 years.
  • Sara Heatley, Staff Auditor, Wellsboro – 10 years.
  • Carla Packard, Loan Processor, Escrow Specialist, Troy – 30 years.
  • John Reber, Director of Risk Management, Wellsboro – 10 years.
  • Bruce Smithgall, Commercial Lending Regional Team Leader, Williamsport – 10 years.
  • Charles H. Updegraff, Jr., Chairman, President and CEO, Wellsboro – 40 years.
  • Kathryn Wesneski, Customer Service Representative, Liberty – 10 years.

 

Service awards luncheons are held regularly and hosted by C&N Chairman, President and CEO Charles H. Updegraff, Jr. In 2014, C&N will recognize 36 employees for a total of 545 years of service to Citizens & Northern Bank.
 
Citizens & Northern Bank is a local, independent community bank providing complete financial, investment and insurance services through 26 full service offices throughout Cameron, Potter, McKean, Tioga, Bradford, Sullivan and Lycoming counties in Pennsylvania and in Canisteo and Hornell, NY in Steuben County. C&N can be found on the worldwide web at www.cnbankpa.com. The Company’s stock is listed on NASDAQ Capital Market Securities under the symbol CZNC.

 

CAPTION: Honored for their service to Citizens & Northern Bank were: Front, from left, Brandy Allen, Carla Packard, Sara Heatley, Joan Grenell and Kathryn Wesneski and back, from left, Charles H. Updegraff, Jr., Jamie Butters, Shelley D’Haene, Stan Dunsmore, John Reber and Bruce Smithgall.

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Eight Students Receive Gale Foundation Scholarships

Posted Tuesday, 13 May 2014 09:59 | Filed under C&N News


GALETON, PA. – Eight Galeton High School students have been awarded scholarships from The William and L. R. Gale Community Foundation a/k/a Galeton Foundation.  The 2014 scholarships totaled $40,000 with each student being awarded a $5,000 scholarship.
   Scholarship recipients include:
- April Howell   who plans to attend Keystone College for nursing;
- Alex Kulish who plans to attend  the University of Pitt at Bradford for Petroleum Technology;
- Andrea Leach  who plans to attend  Juniata College for early childhood education;
- Jeffrey Mashula  who plans to attend  Penn State Dubois for wildlife management;
- Mataya McPherson  who plans to attend Wilkes University for Pharmacy;

- Dakota Shadle   who plans to attend  Mansfield University for the Academic Exploratory Program;

- Dustin Shepler  who plans to attend Neumann University for Accounting; and

- Corrine Shuemaker   who plans to attend University of Pitt at Bradford for nursing.

The Galeton Foundation Scholarship Foundation started this scholarship program in 2013 for current high school seniors attending Galeton Area High School accepted by an accredited college, university or trade school. The scholarship awards may be used to help pay for tuition, books and room and board charges and are paid directly to the college, university or school.
 
The Galeton Foundation is a 501©(3) organization and welcomes contributions to grow the fund to help assist charitable organizations in the Galeton Area and provide scholarships for Galeton Area High School seniors.
 
The C&N Trust and Financial Management Group is the Trustee of the Galeton Foundation.
 
   The C&N Trust and Financial Management Group, a division of Citizens & Northern Bank, maintains offices in Wellsboro, Sayre, Towanda, Williamsport, Coudersport and Canisteo. The division, founded in 1960, provides a wide range of investment, trust and retirement plan services to individuals and organizations.

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WELLSBORO, PA – Citizens & Northern Bank’s Susan Evans and Charles H. Updegraff, Jr. have been recognized for serving 40 or more years in the banking industry. They were honored at the Pennsylvania Bankers Association (PBA) Group 4 meeting held in Williamsport. The 40-Year Club consists of bankers completing 40 or more years of service in Pennsylvania’s banking industry.
 
Evans is a Credit Analyst in C&N’s Jersey Shore office. She began her banking career in 1973 with Fidelity National Bank of Pennsylvania, predecessor to Santander Bank. She worked as secretary to the vice president and president, as a credit analyst, loan review officer and commercial lender. She is treasurer of the Transitional Living Center, Inc. and a volunteer with Susquehanna Health Systems. She and her husband, Raymond, have two children and two granddaughters and live in Williamsport.
 
Updegraff, C&N Chairman, President and CEO, began his banking career in 1972 with Citizens Trust Company, headquartered in Coudersport. He served as Chairman, President and CEO of Citizens Trust until its merger with Citizens & Northern in 2007. From 2007 until January 2010, he served as Citizens & Northern’s executive vice president and chief operating officer, prior to being named C&N Chairman, President and CEO in January of 2010.
 
He is active in his community serving as a board member and treasurer of Charles Cole Memorial Hospital, previously serving as Cole’s board chairman. He is president of Coudersport Golf Club and previously served as a member of the council of St. Paul’s Evangelical Lutheran Church. He is a member of the Pennsylvania and American Bankers Associations and has served in numerous offices within those organizations.
 
Updegraff, his wife, Kimberly, and their daughter live in Coudersport.
 
Citizens & Northern Bank is a local, independent community bank providing complete financial, investment and insurance services through 26 full service offices throughout Cameron, Potter, McKean, Tioga, Bradford, Sullivan and Lycoming counties in Pennsylvania and in Canisteo and Hornell, NY in Steuben County. C&N can be found on the worldwide web at www.cnbankpa.com. The Company’s stock is listed on NASDAQ Capital Market Securities under the symbol CZNC.
 
CAPTION:
Susan Evans, center, left photo, and Charles H. Updegraff, Jr., center, right photo, receive their 40-year recognition certificates from PBA Group 4 First Vice Chairman J. Donald Steele, Jr. and PBA Chairperson Patricia A. Husic.

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WILLIAMSPORT, PA – Citizens & Northern Bank was recognized for celebrating its 150-year charter anniversary at the Pennsylvania Bankers Association (PBA) Group 4 meeting at the Williamsport Country Club. The PBA recognizes member charter anniversaries every five years from the date of that institution’s charter.
 
Citizens & Northern Bank, headquartered in Wellsboro, PA, was founded in 1864 as the First National Bank of Wellsborough. The Articles of Association were signed on Feb. 27, 1864 and the bank received its charter on March 21, 1864. C&N maintained a single office in Wellsboro until opening its first branch in Tioga on March 1, 1961. The C&N Trust and Financial Management Group was formed as the bank’s first division in 1960.
 
The bank experienced rapid growth during the ensuing four decades, expanding to 26 offices in two states. The bank’s name was changed to Citizens & Northern in 1971 following the merger of Northern National Bank and Trust Company of Wellsboro and Citizens National Bank of Towanda.
 
Citizens & Northern Bank is a local, independent community bank providing complete financial, investment and insurance services through 26 full service offices throughout Cameron, Potter, McKean, Tioga, Bradford, Sullivan and Lycoming counties in Pennsylvania and in Canisteo and Hornell, NY in Steuben County. C&N can be found on the worldwide web at www.cnbankpa.com. The Company’s stock is listed on NASDAQ Capital Market Securities under the symbol CZNC. C&N’s corporate headquarters is in Wellsboro, PA.

Charles H. Updegraff, Jr., center, Citizens & Northern Bank Chairman, President and CEO, receives the PBA recognition from J. Donald Steele, Jr., Group 4 First Vice Chair and Patricia A. Husic, PBA Chair.