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C&N Announces Second Quarter Financial Results

Posted Thursday, 19 July 2012 08:39 | 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, 2012.

Net income for the second quarter 2012 was $5,685,000, or $0.46 per basic and diluted share, comparable to net income of $0.46 per share for the first quarter 2012 and down slightly from $0.47 per share for the second quarter 2011. For the first six months of 2012, net income was $11,272,000, or $0.92 per basic and diluted share, comparable to $0.92 per share in the first six months of 2011. Annualized return on average assets was 1.72% for the six months ended June 30, 2012, and annualized return on average equity for the same period was 13.12%.

Some of the more significant fluctuations in the components of earnings are as follows:Net interest income in the second quarter 2012 was $146,000 (1.2%) lower than in the first quarter 2012, and $313,000 (2.6%) higher than in the second quarter 2011. For the first six months of 2012, net interest income was $1,305,000 (5.7%) higher than for the first six months of 2011. The interest margin fell slightly to 4.33% in the second quarter 2012 from 4.41% in the first quarter 2012, as yields on earning assets (mainly loans and securities) dropped due in part to falling market interest rates. The higher level of net interest income in the second quarter 2012 and year-to-date June 30, 2012 as compared to the corresponding periods of 2011 reflected significant improvement in the margin, primarily because of a lower cost of funds. Net interest income included the benefit of accretion from the offset of a previous write-down on a security, with a benefit of $859,000 in the first six months of 2012, including $402,000 in the second quarter and $457,000 in the first quarter, as compared to a benefit of $271,000 in the first six months of 2011, with $160,000 in the second quarter 2011 and $111,000 in the first quarter 2011. The security matured in the second quarter 2012, with C&N receiving full repayment of principal.

The provision for loan losses was $367,000 in the second quarter 2012, as compared to a credit (reduction in expense) of $182,000 in the first quarter 2012 and a provision of $31,000 in the second quarter 2011. For the first six months of 2012, C&N’s provision for loan losses was $185,000 as compared to compared to a credit of $161,000 in the first six months of 2011. In the second quarter 2012, the provision included a net increase in specific allowances for loan losses on larger commercial loans of $177,000, including an increase of $263,000 related to one relationship. In the first quarter 2012, the credit included a reduction in a component of the allowance for loan losses that is determined based on the 3 previous years’ net charge-off experience The credits for loan losses in the first quarter 2012 and the first six months of 2011 resulted, in part, from a reduction in loans outstanding, as the general component of the allowance for loan losses was reduced in those periods. The credit for the first six months of 2011 also reflected the benefit of lower charge-off amounts than had been anticipated (and for which larger allowances had been established) related to three commercial loan relationships.

Total noninterest revenue was $4,095,000 in the second quarter 2012, up from $3,759,000 in the first quarter 2012 and $3,673,000 in the second quarter 2011. For the first six months of 2012, total noninterest revenue was $7,854,000 or 26.1% higher than in the first six months of 2011. The increases in noninterest revenue for both the most recent quarter and year-to-date 2012 included significant increases in gains from sales of residential mortgage loans and from brokerage revenues. In April 2012, C&N re-opened the Athens, PA branch, which had been closed due to a flood that occurred in September 2011. In the second quarter 2012, noninterest revenue included a gain related to re-opening the Athens branch of approximately $270,000, as the amount of insurance proceeds received exceeded the historical book value of the assets replaced or reconstructed. Also included in noninterest revenue in the second quarter 2012 were losses totaling $184,000 related to real estate properties acquired in foreclosures. In 2011, noninterest revenue was negatively impacted by an impairment loss in the first quarter of $948,000 related to an investment in a real estate limited partnership. Excluding the 2011 impairment loss, as well as the Athens and foreclosed property transactions, noninterest revenue for the first six months of 2012 was $445,000 (6.2%) higher than in the first six months of 2011.

Net gains from available-for-sale securities totaled $203,000 in the second quarter 2012, as compared to net losses of $2,000 in the first quarter 2012 and net gains of $163,000 in the second quarter 2011. For the first six months of 2012, net securities gains of $201,000 were considerably lower than gains of $2,002,000 in the first six months of 2011. In the first quarter 2011, C&N realized gains of $1,510,000 from two pooled trust-preferred securities that had been written off in prior periods.

Total noninterest expense was $8,280,000 in the second quarter 2012, down $237,000 from the first quarter 2012 and up $486,000 (6.2%) over the second quarter 2011. For the first six months of 2012, total noninterest expense was $740,000 (4.6%) higher than for the first six months of 2011. The reduction in expenses in the second quarter 2012 as compared to the first quarter includes the effect of lower payroll taxes and other employee benefit expenses that are typically higher in the first quarter than in the remainder of the year. The increase in noninterest expenses in the second quarter 2012 as compared to the second quarter 2011 included a charge of $143,000 related to pre-payment of a $5 million borrowing, which C&N funded by selling securities for a net gain of $166,000 and which management expects will result in a slightly favorable impact to the net interest margin in future periods. The increase in noninterest expense in the second quarter 2012 as compared to the second quarter 2011 also reflects increases in salaries and wages of $117,000 (3.4%) as well as increases in software subscriptions and updates, charitable donations and other expenses. The increase in noninterest expense for the six months ended June 30, 2012 as compared to the first six months of 2011 includes an increase in other operating expense of $622,000. Within other operating expense, the largest increases in the first six months of 2012 included the $143,000 charge for pre-payment of a borrowing described above as well as increases in software subscriptions and updates, legal and professional fees, ATM and debit card processing costs, expenses related to other real estate properties and charitable donations. FDIC assessments were $211,000 lower in the first six months of 2012 than in the first six months of 2011, reflecting the benefit of a change in the FDIC’s method for determining assessments that became effective in the second quarter 2011.

Other Information:

Changes in other unaudited financial information are as follows:

  • Total assets amounted to $1,327,527,000 at June 30, 2012, up from $1,316,764,000 at March 31, 2012 and $1,309,650,000 at June 30, 2011.
  • Net loans outstanding (excluding mortgage loans held for sale) were $696,777,000 at June 30, 2012, up from $690,218,000 at March 31, 2012 and down 1.3% from $705,667,000 at June 30, 2011. Total nonperforming assets as a percentage of assets was 0.72% as compared to 0.70% at March 31, 2012 and 0.75% at June 30, 2011.
  • The outstanding balance of residential mortgages originated by C&N for sale to third parties totaled $74,070,000 at Ju ne 30, 2012, up from $39,416,000 one year earlier. Of the total balance of mortgage loans originated for sale, $70,880,000 had been sold as of June 30, 2012. C&N provides servicing on these loans, including the loans that have been sold.
  • Deposits and repo sweep accounts totaled $1,033,698,000 at June 30, 2012 as compared to $1,020,831,000 at March 31, 2012 and $1,015,704,000 at June 30, 2011. Deposit balances increased significantly in late June due to the timing of many government-related direct deposits. Average total deposits and repo sweeps for the first six months of 2012 amounted to $1,010,023,000.
  • Total shareholders’ equity was $176,062,000 at June 30, 2012, up from $171,614,000 at March 31, 2012 and $153,693,000 at June 30, 2011. Tangible common equity as a percentage of tangible assets was 12.46% at June 30, 2012, up from 10.90% a year earlier.
  • Assets under management by C&N’s Trust and Financial Management Group amounted to $669,538,000 at June 30, 2012, up 5.5% from a year earlier.

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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C&N Declares Dividend

Posted Thursday, 19 July 2012 08:35 | Filed under C&N News

WELLSBORO, PA – Directors of Citizens & Northern Corporation, parent company of Citizens & Northern Bank, have declared a regular quarterly cash dividend of $0.22 per share. The record date is August 1, 2012 and it is payable on August 13, 2012 to shareholders of record. The amount is increased from the previous dividend of $0.20 per share, which was paid in May, 2012, and is the tenth consecutive quarterly increase in the dividend.

Declaration of the dividend was made at the July 19, 2012 meeting of the C&N Board of Directors.

Citizens & Northern Corporation is the parent company of 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 Bradford, Cameron, Lycoming, Potter, McKean, Steuben, Sullivan and Tioga Counties. C&N can be found on the worldwide web at www.cnbankpa.com . The Corporation’s stock is listed on NASDAQ Capital Market Securities under the symbol CZNC.

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Terry Moore Joins C&N Business Banking Division

Posted Monday, 02 July 2012 10:07 | Filed under C&N News

Terry Moore

Terry Moore

WELLSBORO, PA – Terry Moore, an experienced business banker, has joined the Citizens & Northern Bank commercial lending team in Lycoming County. She is working from the bank’s Old Lycoming office.

Moore has more than 30 years of experience in the banking industry with a broad range of retail and commercial banking experience. In her new position with C&N, she is responsible for business banking relationship development for both existing and prospective clients.

She is a graduate of Williamsport Area High School and attended Williamsport Area Community College. For 26 years she worked in banking in the Stroudsburg area, returning to Williamsport six years ago covering Snyder-Union and Northumberland counties as a business banker.

Active in her community, Moore is a member of the board of directors of the Union-Snyder Habitat for Humanity, serving as chairperson for the Family Selection Committee. She assists with the children’s musical ministry at Faith Wesleyan Church in Williamsport, is a choir parent member at Warrior Run High School and has served as a loaned executive for the Greater Susquehanna Valley United Way. Moore has one daughter and lives in Watsontown.

“We are pleased to be able to offer our Lycoming County commercial clients the services of such an experienced lender,” said Hal Hoose, EVP and Director of Lending. “We are committed to Lycoming County and the expansion of our commercial division there further honors that commitment. Terry brings a wealth of knowledge and experience to the division and looks forward to serving our clients in Lycoming County,” he said.

Moore can be reached directly at 323-9284 ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ).

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.

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Michelle Rae Joins C&N Lending Team

Posted Friday, 29 June 2012 12:57 | Filed under C&N News

Carol Barrett

Michelle Rae

WELLSBORO, PA – Michelle Rae has joined the Citizens & Northern Bank lending team as a Business Development Sales Officer in Bradford County. She will work from the bank’s Towanda office at 428 Main Street.

In her new position, Rae will focus on purchase money mortgages, refinancing, new construction, debt consolidation, home improvement and a variety of other mortgage options. Her goal is to develop lasting relationships with her clients and assist them in all aspects of their financial services needs.

Rae holds a Bachelor of Business degree with a minor in Human Resources and Communications from Keystone College. Prior to joining the C&N commercial lending division, she was development director of the Homeownership and Foreclosure Program at Trehab.

She chairs the Main Event, a fundraiser group for her daughter’s dance competition team, at Pat Haggerty Dance Studio.

Rae and her husband, Mark, have two children and live in Sayre.

Current and prospective customers can reach Rae by calling her direct line, 570-268-3034; by fax at 570- 265-9196 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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.

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Five C&N Employees Earn Service Awards

Posted Monday, 25 June 2012 15:07 | Filed under C&N News

juneserviceawards2012

Charles H. Updegraff, Jr., C&N chairman, president and CEO, presented service awards to, from left, Rhonda Litchfield, Charity Shaefer,
April Morgan, Alison Broughton and Karen Bobb.

WELLSBORO, PA – Five Citizens & Northern Bank employees have been recognized for a combined 70 years of service to the financial institution.

Recognized during the June service awards luncheon were:

  • Karen Bobb, Teller in the Laporte office, 15 years.
  • Alison Broughton, Senior Mortgage Underwriter in the Wellsboro office, 10 years.
  • Rhonda Litchfield, Trust Investment Manager in the Wellsboro office, 25 years.
  • April Morgan, Tax Trust Officer in the Wellsboro office, 10 years.
  • Charity Shaefer, teller in the Tioga office, 10 years.

Service awards luncheons are held regularly and hosted by C&N Chairman, President and CEO Charles H. Updegraff, Jr. In 2012, C&N will recognize 27 employees for a total of 515 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.
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Six Tioga Students Earn Copp Scholarships

Posted Wednesday, 20 June 2012 15:18 | Filed under C&N News

coppwinners2012

Copp Scholarship’s 2012 recipients were honored at a luncheon at the Penn Wells Hotel. Pictured are, left to right, Michael G. Charles, CPA, VP and Tax Officer with the C&N Trust and Financial Management Group (T&FMG), Recipient Garrett C. Webster, Wellsboro Area School District Superintendent Chris Morral, Recipient Derik Remley, Southern Tioga School District Superintendent Keith Yarger, Recipient Kyle Eisenhardt and Brian J. Tevlin, CTFA, CFP ®, AVP & Trust Officer with the T&FMG. Absent from the photo were Northern Tioga School District Superintendent Dr. Timothy Bowers and recipients Shawn Seeley, Michaleia Mead and Raina Rogers.

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 2012 awards totaled $73,480.00.

The Scholarship Committee hosted a luncheon for scholarship recipients and their parents at the Penn Wells Hotel in Wellsboro.

The 2012 recipients include:

  • Kyle John Allen Eisenhardt, son of Jack and Jenny Eisenhardt of Liberty. A graduate of Liberty Junior-Senior High School, he plans to attend Penn State in Dubois majoring in wildlife and fisheries sciences.
  • Michaleia Mead, daughter of Charles and Amy Mead of Westfield. A graduate of Cowanesque Valley High School, she plans to attend Penn State University majoring in wildlife and fisheries sciences.
  • Derik Remley, son of Drew and Lisa Remley of Roaring Branch. A graduate of Liberty Junior-Senior High School, he plans to attend Penn State University at Hazelton majoring in agricultural sciences.
  • Raina Rogers, daughter of Seth and Bonnie Rogers of Wellsboro. A graduate of Wellsboro Area High School, she plans to attend Alfred State College studying veterinary technology.
  • Shawn Seeley, son of Henry and Bobby Seeley of Westfield. A graduate of Cowanesque Valley High School, he plans to attend Penn State University in Altoona majoring in wildlife and fisheries sciences.
  • Garrett C. Webster, son of Tim and Karen Webster of Wellsboro. A graduate of Wellsboro Area High School, he plans to attend Penn State University at Altoona majoring in animal sciences.

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 higher 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, bioresource, 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 trust’s Scholarship Committee, which consists of the Trustee, Citizens & Northern Bank’s Trust and Financial Management Group, 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.

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, applicants 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.