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C&N Announces First Quarter Earnings

Posted Monday, 16 April 2012 14:30 | Filed under C&N News

WELLSBORO, PA – Citizens & Northern Corporation (C&N) announced its unaudited, consolidated financial results for the first quarter 2012. Net income available to common shareholders for the first quarter 2012 was $5,587,000, or $0.46 per basic and diluted share. The first quarter 2012 return on average assets was 1.72%, and the return on average equity was 13.15%. First quarter 2012 earnings were down from fourth quarter 2011 earnings of $6,141,000, or $0.51 per basic and diluted share. First quarter 2012 earnings were up slightly as compared to first quarter 2011 earnings of $5,541,000, or $0.46 per basic share and $0.45 per diluted share.

Some of the more significant fluctuations in the components of earnings are as follows:First quarter 2012 net interest income was $120,000 (1.0%) lower than in the fourth quarter 2011, and $992,000 (8.8%) higher than in the first quarter 2011. Although the interest margin improved to 4.41% in the first quarter 2012 as compared to 4.33% in the fourth quarter 2011, the most recent quarterly net interest income was impacted by a 1.2% lower average volume of earning assets. The higher level of net interest income in the first quarter 2012 as compared to first quarter 2011 reflected significant improvement in the margin, which was up from 4.05% in the first quarter 2011, primarily because of a lower cost of funds. Net interest income includes the benefit of accretion from the offset of a previous write-down on a security, with a benefit of $457,000 recorded in the most recent quarter, up from $325,000 in the fourth quarter 2011 and $111,000 in the first quarter 2011.

The provision for loan losses was a credit (reduction in expense) of $182,000 in the first quarter 2012, as compared to a credit of $87,000 in the fourth quarter 2011 and a credit of $192,000 in the first quarter 2011. The credits for loan losses in 2012 and 2011 have resulted, in part, from a reduction in loans outstanding, as the general component of the allowance for loan losses was reduced. 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. In recent years, C&N has experienced a limited amount of loan-related credit problems, as compared to averages for comparable-sized peer banks.

Total noninterest revenue was $3,759,000 in the first quarter 2012, up slightly over the fourth quarter 2011 total of $3,711,000 and up from $2,555,000 in the first quarter 2011. 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.

In the first quarter 2012, C&N had net losses from available-for-sale securities of $2,000, down from gains of $188,000 in the fourth quarter 2011 and considerably lower than gains of $1,839,000 in the first quarter 2011. In the most recent quarter, C&N had realized gains from securities totaling $65,000, but recorded an other-than-temporary-impairment loss of $67,000 on an investment in a bank stock. 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 $8,517,000 in the first quarter 2012, up $569,000 over the fourth quarter 2011, and up $254,000 (3.1%) over the first quarter 2011. A portion of the reason for the higher expenses in the first quarter 2012 as compared to the fourth quarter 2011 is timing-related, as payroll taxes and some other employee benefit costs are typically higher in the first quarter than in the remainder of the year. This is reflected in pensions and other benefit expenses, which totaled $1,366,000 in the most recent quarter, up $303,000 over the fourth quarter 2011 and up $60,000 over the first quarter 2011. Other operating expense, a category that includes many different types of expenses, totaled $1,980,000 in the most recent quarter, up $203,000 over the fourth quarter 2011 and $284,000 over the first quarter 2011. Within other operating expense, first quarter 2012 expenses for director stock options, business development and postage were higher than in the fourth quarter 2011. The largest increases in other operating expense in the most recent quarter as compared to the first quarter 2011 were from software subscriptions and updates, postage and expenses related to other real estate properties. FDIC assessments totaled $146,000 in the most recent quarter, in line with the fourth quarter 2011 and considerably lower than the first quarter 2011 expense of $325,000. Effective in the second quarter 2011, the FDIC changed its method for determining assessments, which helped to reduce the amounts charged to C&N, and improvements in C&N’s financial data also had a favorable impact on the amounts assessed.

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

  • Total assets amounted to $1,316,764,000 at March 31, 2012 as compared to $1,323,735,000 at December 31, 2011 and $1,316,209,000 at March 31, 2011.
  • Net loans outstanding (excluding mortgage loans held for sale) were $690,218,000 at March 31, 2012, down from $700,610,000 at December 31, 2011 and down 2.8% from $710,113,000 at March 31, 2011. Total nonperforming assets as a percentage of assets was 0.70% at March 31, 2012, an improvement from 0.73% at December 31, 2011 and 0.88% at March 31, 2011.
  • The total balance of residential mortgages originated by C&N for sale to third parties totaled $64,569,000 at March 31, 2012, up from $35,493,000 one year earlier. Of the total balance of mortgage loans originated for sale, $62,346,000 had been sold as of March 31, 2012. C&N provides servicing on these loans, including the loans that have been sold.
  • Deposits and repo sweep accounts totaled $1,020,831,000 at March 31, 2012 as compared to $1,023,156,000 at December 31, 2011 and $1,026,069,000 at March 31, 2011.
  • Total shareholders’ equity of $171,614,000 at March 31, 2012 was up from $167,385,000 at December 31, 2011 and $146,053,000 at March 31, 2011. Tangible common equity as a percentage of tangible assets was 12.22% at March 31, 2012, up from 10.26% a year earlier.
  • Assets under management by C&N’s Trust and Financial Management Group amounted to $678,693,000 at March 31, 2012, up 6.8% 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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2011 Annual Highlights

Posted Thursday, 12 April 2012 15:42 | Filed under C&N News
Citizens & Northern Corporation’s 2011 Annual Highlights is now available.

2011 ANNUAL HIGHLIGHTS [pdf]
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April 2012 BanCNotes

Posted Monday, 26 March 2012 20:18 | Filed under C&N News

This Quarter's Topics:

  • Stay Safe On and Off Line!
  • We're Committed To Your Online Security!
  • It's An Information Jungle Out There!
  • Help! My Identity Has Been Stolen!
April BanCNotes 2012 [pdf]
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Carol Barrett Earns Mortgage Lending Diploma

Posted Thursday, 15 March 2012 12:48 | Filed under C&N News

Carol Barrett

Carol Barrett

WELLSBORO, PA – Carol E. Barrett, Citizens & Northern Bank client contact specialist, has earned her residential mortgage lending diploma from the American Institute of Banking.

A three-year C&N employee, she holds her legal secretary associate’s degree from Newport Business Institute.

Prior to joining C&N, she worked as office manager of Serve-U-Settlement and as an abstractor in the real estate department of Owlett & Lewis, P.C.

She and her husband, Leland, live in Wellsboro and have two children.

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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Oswayo Valley Students Receive C&N Donation

Posted Wednesday, 29 February 2012 16:00 | Filed under C&N News

Oswayo Donation

Justin Krellner of the C&N Trust and Financial Management Group, right, presents the check to, from left,
Donny Norton, Oswayo Valley fourth grade teacher; Beth Lewis, music teacher and Shelly Rees, fifth grade teacher..

COUDERSPORT, PA – Citizens & Northern Bank has donated $500 to the Oswayo Valley School District to help fund a student field trip to Pittsburgh.

Fourth and fifth grade students from the Oswayo Valley Elementary School will sing the National Anthem at the May 9th Pittsburgh Pirates game. The Pirates will take on the Washington Nationals at the PNC Stadium. The students will be led by Beth Lewis, music teacher at the school.

“This is an exciting venture for these young students and we’re pleased to be able to help them with their expenses,” said Justin Krellner, Far West Regional Manager of the C&N Trust and Financial Management Group.

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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C&N Donates Gore Murals to Tioga Point Museum

Posted Friday, 24 February 2012 15:40 | Filed under C&N News

gore-murals

Pictured with the Gore murals are, from left, Terry Depew, business development specialist in the Athens office; Ginger Reap, Athens branch manager; Valerie Jacoski, Tioga Point Museum director; Matthias Smith, director of Naglee Fine Arts Moving and Storage and Naglee staff members.

ATHENS, PA – Citizens & Northern Bank has donated two large murals, painted by local Athens artist M. Louis Gore, to the Tioga Point Museum in Athens. The murals were painted by Mr. Gore specifically for the former Farmers National Bank, now the C&N office at 428 Main Street in Athens. They are approximately 14’ x 5’ and 13’ x 5’ and have hung in the Athens office since 1950 and 1951.

The murals were removed from the flood-damaged Athens C&N branch office Thursday morning. Workers from Naglee Fine Arts Moving and Storage of Elmira, NY. handled the mural removal and transported them to the museum where they will be temporarily housed in the manner recommended to best structurally support them. Museum Director Valerie Jacoski said museum officials hope to repair some minor damage before moving them to their permanent home on the stairwell wall leading up to the museum, located upstairs in the Athens Public Library.

“We’re very excited to receive these murals, which fit in so well with the quality of our other collections,” Jacoski said.

One mural was painted from Round Top looking south towards Milan, and the other was painted from Prospect Point (Sheshequin narrows) looking north towards Athens. The murals were damaged by flooding in 1972, causing the bottoms to bow. They were not adversely impacted by the September 2011 flooding, but the Athens office was severely damaged and is undergoing extensive renovation. C&N officials felt the murals should be moved to a safer location and knew the museum would be an excellent steward for them.

Ginger Reap, Athens branch manager, said the branch will retain a large mural of the old Athens Academy Mr. Gore donated to the bank on behalf of Farmers National Bank President Stanley Burns and a self-portrait of Mr. Gore in Paris donated to the bank by his niece. The Athens office is expected to re-open this spring.

M. Louis Gore died in December, 1967 at the age of 90. A member of one of Bradford County’s first families, he studied art in Paris and did sketching and painting in France, England and Scotland. His murals and paintings are featured in many public buildings and homes throughout the Valley area. He was also an accomplished photographer.

The 117-year-old Tioga Point Museum (www.tiogapointmuseum.com) is located in the Spalding Memorial Building. It houses an extensive collection of rare and historic items, including original George Washington and Abraham Lincoln signatures, an extraordinary rare book collection with elaborately decorated bindings, Revolutionary and Civil War collections, local and non-local Native American exhibits, portraits of early Valley settlers and many souvenirs from local residents who traveled the world. The museum is open Tuesdays and Thursdays, noon to 8 p.m. and Saturdays 10 a.m. to 1 p.m.

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.