This Quarter's Topics:
- Take advantage of today’s low rates!
- Don’t Get Caught By Online Postings
- Time To Grow Your Business? We Can Help!
- E-statements: What’s In It For You?
Collection barrels will be placed in each office beginning November 1st. The public is invited to visit any of the participating offices to donate food items to the food bank. Participating offices include:
- Jersey Shore – 230 Railroad Street
- Muncy – 3461 Route 405 Highway
- Old Lycoming – 1510 Dewey Avenue
- Ralston – 24 Thompson Street
- South Williamsport – 2 East Mountain Avenue
- Williamsport – 130 Court Street.
The Central Pennsylvania Food Bank distributes more than 15 million pounds of food and grocery products every year to more than 500 soup kitchens, shelters, and food pantries in 27 central Pennsylvania counties. These agencies directly feed thousands of hungry families throughout central Pennsylvania. More information on the food bank is available at www.centralpafoodbank.org.
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.
WELLSBORO, PA - Directors of Citizens & Northern Corporation, parent company of Citizens & Northern Bank, have declared a regular quarterly cash dividend of $0.12 per share. The record date is November 1, 2010 and it is payable on November 12, 2010 to shareholders of record. The amount is increased from the previous dividend of $0.10 per share, which was paid in July, 2010. A dividend of $0.09 per share was paid in May and an $0.08 dividend was paid in February.
Declaration of the dividend was made at the October 21, 2010 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.
Wellsboro, PA - Citizens & Northern Corporation (C&N) announced its unaudited, consolidated financial results for the third quarter 2010 and for the nine months ended September 30, 2010.
In the third quarter 2010, net income available to common shareholders was $4,135,000, or $0.34 per share – basic and diluted. Third quarter earnings per share was reduced by $607,000, or $0.05 per share, for accelerated discount accretion related to C&N’s repayment of the preferred stock that had been sold to the U.S. Treasury Department under the TARP Capital Purchase Program. Net income available to common shareholders was $4,497,000, or $0.37 per share - basic and diluted in the second quarter 2010 and the net loss was $28,194,000, or $3.17 per share in the third quarter 2009. Pre-tax realized gains from available-for-sale securities totaled $388,000 in the third quarter 2010 and $319,000 in the second quarter 2010, while third quarter 2009 results were significantly impacted by pre-tax realized losses from securities totaling $47,848,000.
For the nine months ended September 30, 2010, net income available to common shareholders was $12,697,000, or $1.05 per share – basic and diluted. For the first nine months of 2009, C&N’s net loss of $45,005,000, or $5.01 per share, included the effects of pre-tax realized losses from securities totaling $83,522,000.
Core Earnings is an earnings performance measurement which C&N’s management has defined to exclude the effects of other-than-temporary impairment (OTTI) losses on available-for-sale securities and realized gains on securities for which OTTI has previously been recognized. Core Earnings is a performance measurement that is not based on U.S. generally accepted accounting principles (GAAP), meaning that it is a non-GAAP measure. Management believes Core Earnings information is meaningful for evaluating C&N’s operating performance, because it excludes some of the impact of market volatility as it relates to investments in securities. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
The table below provides a reconciliation of Core Earnings to net income (loss), the most directly comparable GAAP financial measure:
RECONCILIATION OF NON-GAAP MEASURE (UNAUDITED)
(In thousands, except per-share data)
Core earnings per share -diluted was $0.32 in the third quarter 2010, down $0.03 from the immediately previous quarter and $0.11 from the third quarter 2009, and reflecting the effects of the $0.05 charge resulting from the preferred stock repayment (described above). For the first nine months of 2010, core earnings per share – diluted was $1.02, as compared to $1.26 for the first nine months of 2009. Core earnings per share in 2010 have been impacted by a higher number of weighted average common shares outstanding than in 2009, resulting from the issuance of shares of common stock in a public offering in December 2009 that raised capital of $21.4 million, net of offering costs. Some of the more significant fluctuations in the components of core earnings are as follows:
- Net interest income was $10,856,000 in the third quarter 2010, up $506,000 from the second quarter 2010 and $64,000 over the third quarter 2009. Year-to-date, net interest income totaled $31,679,000 in 2010, down 3.8% from the first nine months of 2009. The improvement in the most recent quarter reflected a reduced cost of funds, an increase in average loans, with a reduced average amount of funds held in overnight investments.
- Noninterest revenue was $3,449,000 in the third quarter 2010, up $439,000 from the immediate prior quarter and $167,000 over the third quarter 2009. Third quarter 2010 revenue included an increase in revenue from mortgages originated and sold in the secondary market totaling $131,000 (as compared to the second quarter), as well as gains from sales of other real estate. For the nine months ended September 30, 2010, noninterest revenue was $978,000, or 10.7%, higher than the first nine months of 2009. In the first quarter 2010, C&N realized a pre-tax gain of $448,000 from the exchange of property at one of the banking locations. Also in 2010, revenue from sales of mortgages and from debit card-related interchange fees have increased substantially.
- The provision for loan losses was $189,000 in the third quarter 2010, for a total of $472,000 for the first nine months of 2010. In 2009, the provision for loan losses was $634,000 in the third quarter and $554,000 for the first nine months.
- Noninterest expense totaled $7,969,000 in the third quarter 2010, up $340,000 from the second quarter, mainly as a result of higher costs related to loan collection activities and an increase of $155,000 in total salaries and wages. Noninterest expense was $308,000 lower in the third quarter 2010 as compared to the third quarter 2009, and noninterest expense for the nine months ended September 30, 2010 was $2,581,000 or 9.9% lower than the total for the first nine months of 2009. Year-to-date, total salaries and benefit expenses are $697,000, or 5.3%, lower in 2010 than in the first nine months of 2009. In 2010, furniture and equipment expenses have been reduced because much of the computer hardware and software for the core banking system became fully depreciated in late 2009, and FDIC assessments have been lower in 2010 than in 2009.
- The provision for income taxes totaled $1,671,000, or 25.6% of pre-tax income in the third quarter 2010, up from $1,281,000 or 20.8% of pre-tax income in the second quarter. The provision for income tax in the second quarter included a benefit (reduction in expense) of $225,000 resulting from a reduction in a valuation reserve. For the nine months ended September 30, 2010, the tax provision was $4,389,000, or 23.6% of pre-tax income.
Changes in other unaudited financial information are as follows:
- Total assets amounted to $1,308,000 at September 30, 2010, down from $1,338,657,000 at June 30, 2010 and up 1.9% from $1,283,378,000 at September 30, 2009.
- Net loans outstanding were $718,087,000 at September 30, 2010, up from $715,363,000 at June 30, 2010 and down 0.3% from September 30, 2009.
- Total deposits and repo sweep accounts of $1,001,918,000 at September 30, 2010 were up 0.5% from June 30, 2010 and 7.6% from September 30, 2009.
- Total shareholders’ equity was $141,082,000 at September 30, 2010, down from $161,495,000 at June 30, 2010 as a result of the preferred stock repayment. Tangible common equity as a percentage of tangible assets was 9.94% at September 30, 2010.
- Assets under management by C&N’s Trust and Financial Management Group amounted to $591,267,000 at September 30, 2010, up from $558,344,000 at June 30, 2010 and down 0.3% from one year earlier. Fluctuations in the value of assets under management have resulted mainly from volatility in U.S. and international stock market 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.
|Charles H. Updegraff, Jr.,
C&N president and CEO.
Wellsboro, PA - The Citizens & Northern Corporation Board of Directors today elected Charles H. Updegraff, Jr. as chairman. Updegraff, 57, has been serving as president and chief executive officer since January, 2010. The board has been operating without a chairman since December.
Updegraff 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.
The new chairman is a graduate of Coudersport Area High School, Bloomsburg University and numerous banking schools. He is active in his community serving as Charles Cole Memorial Hospital board president and board member of the Coudersport Golf Club. He 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, Jillian, live in Coudersport.
“Mr. Updegraff has led Citizens & Northern through a challenging economic period, not only for Citizens & Northern, but for all financial institutions. We are grateful for his expertise and commitment to C&N. He has been an outstanding president and CEO and will make an excellent chairman,” said Lead Director James E. Towner.
With approximately $1.3 billion in assets, 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 located throughout Tioga, Bradford, Sullivan, Lycoming, Potter, Cameron and McKean Counties in Pennsylvania and in Canisteo and Hornell in Steuben County, NY. Citizens & Northern Bank can be found on the web at www.cnbankpa.com. The company’s common stock is listed on the NASDAQ Capital Market under the symbol CZNC.
The bank has seven offices in Bradford County, including Athens, East Smithfield, Monroeton, Sayre, Towanda, Troy and Wysox. Desiree Rockwell, fundraising chairperson, accepted the bank’s contribution from William Holmes, Troy Branch manager; Stacey Sickler, mortgage specialist for Bradford and Sullivan Counties and Melanie Sparbanie, new business development specialist based in the bank’s Towanda office.
The United Way of Bradford County has only one paid employee – a part time administrative assistant, Rockwell explained. “That means that 96 cents out of every dollar donated goes right back into our local communities. I think we’re unique in that way,” she said.
The United Way helps fund agencies that provide counseling, crisis and emergency services, mentoring, youth services, emergency food, hospice care, library and literacy services and much more. For a complete list of non-profit agencies supported by the Bradford County United Way, visit the UW’s website at www.unitedwaybradfordcounty.org