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WELLSBORO, PA – Citizens & Northern Corporation (C&N) has announced its unaudited, consolidated financial results for the three-month and nine-month periods ended September 30, 2013.

 Net income was $4,689,000 in the third quarter 2013, or $0.38 per basic and diluted share, as compared to $0.40 per share in the second quarter 2013 and down from $0.45 per share in the third quarter 2012. Net income for the nine months ended September 30, 2013 totaled $14,369,000, or $1.16 per share, representing an annualized return on average assets of 1.55% and an annualized return on average equity of 10.57%. Net income for the first nine months of 2013 was down from $1.37 per share for the first nine months of 2012.

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

 

  • Net interest income totaled $10,631,000 in the third quarter 2013, down from $10,940,000 in the second quarter 2013 and $11,608,000 in the third quarter 2012. For the first nine months of 2013, net interest income of $32,618,000 was down $3,392,000 (9.4%) from the first nine months of 2012. In the first nine months of 2013, yields earned on securities and loans have fallen by more than interest rates paid on deposits and borrowings. Also, net interest income in 2012 was enhanced by the recovery of a security that had been written down in prior years, resulting in income (accretion) of $855,000, all of which was recorded in the first two quarters of 2012.

 

  • In the third quarter 2013, the provision for loan losses was $239,000, up from $66,000 in the second quarter 2013 and slightly higher than the third quarter 2012 amount of $236,000.  The increase in the provision in the most recent quarter was mainly related to commercial loans. For the first nine months of 2013, the provision for loan losses was $488,000, up $67,000 from the total for the first nine months of 2012.

 

  • Noninterest revenue of $4,293,000 in the third quarter 2013 was $102,000 higher than in the second quarter 2013 and $171,000 higher than in the third quarter 2012. Service charges on deposit accounts increased $110,000 in the third quarter 2013 over the second quarter 2013, and total trust and brokerage revenues increased $168,000 in the third quarter 2013 over the third quarter 2012. For the first nine months of 2013, total noninterest revenue exceeded the corresponding 2012 total by $271,000, with increases in gains from sales of loans of $493,000 and total trust and brokerage revenues of $193,000. The net gain from premises and equipment was $14,000 in the first nine months of 2013, as compared to $271,000 in the first nine months of 2012.

 

  • In the third quarter 2013, realized gains from securities totaled $193,000, up from $100,000 in the second quarter 2013. In the third quarter 2012, C&N generated gains from sales of securities totaling $2,430,000 and also incurred losses from prepayment of borrowings totaling $2,190,000. Realized gains from securities totaled $1,452,000 in the first nine months of 2013 as compared to $2,631,000 in the first nine months of 2012, while losses from prepayment of borrowings amounted to $1,023,000 in the first nine months of 2013 as compared to $2,333,000 in the same period of 2012.

  

  • Noninterest expenses, excluding losses from prepayment of borrowings, totaled $8,610,000 in the third quarter 2013, up $90,000 (1.1%) as compared to the second quarter 2013 and $384,000 (4.7%) over the third quarter 2012. Professional fees expense (included in other operating expense) totaled $806,000 in the third quarter 2013, which was $345,000 higher than the second quarter 2013 amount and $694,000 higher than the third quarter 2012 amount. In the third quarter 2013, C&N incurred professional fees expense of $724,000 related to a consulting engagement in which the consulting firm identified recommendations for potential increases in revenues with an estimated annual total pre-tax benefit of approximately $1.3 million. Management expects to realize ongoing benefits from implementing the recommendations to a significant extent starting in the fourth quarter 2013 and thereafter, though the actual amount of benefits to be derived is difficult to estimate and is dependent on many variables. Also, in the second quarter 2013, C&N incurred professional fees expense of $315,000 from a consulting project related to debit card operations and electronic funds processing, for which reductions in electronic funds processing expenses and other benefits are expected to be realized over approximately the next five years. For the nine months ended September 30, 2013, total noninterest expenses of $25,683,000 were $723,000 (2.8%) higher than the corresponding total for the first nine months of 2012. Mainly as a result of the consulting engagements described above, professional fees expense was $1,071,000 higher in the first nine months of 2013 as compared to the first nine months of 2012. Pensions and other employee benefit costs were $273,000 lower in the first nine months of 2013 as compared to the first nine months of 2012, including a reduction of $215,000 in health insurance expense associated with C&N’s partially self-insured plan due to a lower amount of claims.

 

 

Other Information:

 

Changes in other unaudited financial information are as follows:

  • Total assets amounted to $1,232,952,000 at September 30, 2013 as compared to $1,228,344,000 at June 30, 2013 and $1,310,009,000 at September 30, 2012.

 

  • Net loans outstanding (excluding mortgage loans held for sale) were $641,345,000 at September 30, 2013 as compared to $647,772,000 at June 30, 2013 and down $49.0 million (7.1%) from $690,357,000 at September 30, 2012. Total nonperforming assets as a percentage of assets was 0.83% at September 30, 2013 as compared to 0.80% at June 30, 2013 and 0.79% at September 30, 2012.

  

  • The outstanding balance of residential mortgages originated by C&N and sold to third parties, with servicing retained, totaled $138,074,000 at September 30, 2013, up from $126,489,000 at June 30, 2013 and up $54.9 million from one year earlier.

 

  • Deposits and repo sweep accounts totaled $968,298,000 at September 30, 2013, up from $955,156,000 at June 30, 2013, and down from $1,017,667,000 at September 30, 2012. The decrease in deposits as compared to one year earlier was primarily from a reduction in time deposits.

 

  • Total shareholders’ equity was $181,206,000 at September 30, 2013, up from $179,361,000 at June 30, 2013 and $180,146,000 at September 30, 2012. Net unrealized gains from available-for-sale securities amounted to $2,520,000 at September 30, 2013, down from $2,832,000 at June 30, 2013 and $12,278,000 at September 30, 2012, reflecting the effects of recent increases in long-term interest rates. Tangible common equity as a percentage of tangible assets was 13.71% at September 30, 2013, up from 12.03% a year earlier.

 

  • Assets under management by C&N’s Trust and Financial Management Group amounted to $760,964,000 at September 30, 2013, an increase of 7.6% 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 – Robert Haefner of Winfield, PA has won the grand prize in the annual Citizens & Northern Bank Photo Contest. His photo was selected from more than 500 entries.

Winning photographs will be featured on C&N’s 2014 calendar. Haefner’s photo is one of 13 selected for inclusion. The winning photo features brilliant purple iris against a wooded background.

 Other winners and the month their photographs will represent include:
-          Ann Kamzelski of Wellsboro, a snow-covered forest - January
-          Carol Ulrich of Montgomery, an ice-laden birdhouse - February
-          Don Biresch of Ottsville, a raccoon perched in a tree - March
-          Jeff Hoodak of Dushore, colorful daffodils in spring - April
-          Mike Henrich of Sayre, a bald eagle and baby - May
-          Jeanie Leber of Middlebury Center, a phlox-flanked path - June
-          Donna Williams of Troy, an assortment of summer flowers – July
-          Kathleen Odenweller of Middlebury Center, a wren in song – August
-          Patrick Greenabaum of Cogan Station, hot air balloons at night - September
-          Molly Kinsey of Dushore, Sullivan Falls in autumn - October
-          Marilyn Wood of Tioga, a strutting turkey - November
-          Maria Ananea of Williamsport, a cute snow-covered snowman - December
 
All winners will be honored at a luncheon in Wellsboro in October and will receive cash prizes. The 2014 C&N Photo Calendars will be available free of charge in all offices of Citizens & Northern Bank in late October.
 
“Judging for this calendar is always difficult and close. We have so many talented amateur photographers in our area who are willing to share their talent with us,” said Yvonne Gill, C&N marketing director. “The 2014 calendar photos are wonderful reflections of scenes typical to our area. We’re always amazed at how many beautiful photos we receive.”

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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CITIZENS & NORTHERN CORPORATION DECLARES DIVIDEND

Posted Thursday, 18 July 2013 12:46 | Filed under C&N News

FOR IMMEDIATE RELEASE

 

   WELLSBORO, PA - Directors of Citizens & Northern Corporation, parent company of Citizens & Northern Bank, have declared a regular quarterly cash dividend of $0.25 per share. The dividend is payable on August 9, 2013 to shareholders of record as of July 29, 2013.

     Declaration of the dividend was made at the July 18, 2013 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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C&N Announces Second Quarter Earnings.

Posted Monday, 15 July 2013 12:12 | Filed under C&N News

C&N Announces SECOND QUARTER 2013 UNAUDITED Financial RESULTS

For Immediate Release:

 

WELLSBORO, PA – Citizens & Northern Corporation (C&N) announced its unaudited, consolidated financial results for the three-month and six-month periods ended June 30, 2013.

 

Second quarter 2013 net income was $4,974,000, or $0.40 per basic and diluted share, up from $0.38 per share in the first quarter 2013 and down from $0.46 per share in the second quarter 2012. Net income for the six months ended June 30, 2013 totaled $9,680,000, or $0.78 per share, representing an annualized return on average assets of 1.56% and an annualized return on average equity of 10.57%. Net income for the first six months of 2013 was down from $0.92 per share for the first six months of 2012.

 

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

 

  • Net interest income of $10,940,000 in the second quarter 2013 was down from $11,047,000 in the first quarter 2013 and $12,128,000 in the second quarter 2012. For the first six months of 2013, net interest income of $21,987,000 was down $2,415,000 (9.9%) from the first six months of 2012. Declining and very low interest rates has led to margin compression over the course of 2012 and the first half of 2013, as yields earned on securities and loans have fallen by more than interest rates paid on deposits and borrowings. Also, net interest income in 2012 was enhanced by the recovery of a security that had been written down in prior years, resulting in income (accretion) of $855,000 in the first six months of 2012 including $398,000 in the second quarter 2012.

 

  • The provision for loan losses has remained at a low level by industry standards over the past several years. In the second quarter 2013, the provision for loan losses was $66,000, down from $183,000 in the first quarter 2013 and $367,000 in the second quarter 2012. The reduction in the provision in the most recent quarter was mainly the result of lower outstanding loans. For the first six months of 2013, the provision for loan losses was $249,000, up $64,000 from the first six months of 2012.

 

  • Noninterest revenue totaled $4,191,000 in the second quarter 2013, an increase of $348,000 over the first quarter 2013, and down $88,000 from the second quarter 2012. Total trust and brokerage revenues increased $194,000 in the second quarter over the first quarter 2013. Included in second quarter 2012 noninterest revenue was a net gain from premises and equipment of $270,000, with no corresponding net gain or loss in the most recent quarter. Excluding the net gain from premises and equipment, total noninterest revenue was $182,000 (4.5%) higher in the second quarter 2013 as compared to the second quarter 2012, including an increase in gains from sales of mortgage loans of $214,000. Similarly, total noninterest revenue, excluding the gain from premises and equipment, was $370,000 (4.8%) higher for the first six months of 2013 as compared to the first six months of 2012, including an increase of $494,000 in gains from sales of mortgage loans.

 

  • Realized gains from securities totaled $100,000 in the second quarter 2013, as compared to $1,159,000 in the first quarter 2013 and $203,000 in the second quarter 2012. In the first quarter 2013, C&N generated gains from sales of securities totaling $1,159,000, and also incurred a loss from prepayment of a borrowing of $1,023,000. Realized gains from securities totaled $1,259,000 in the first six months of 2013 as compared to $201,000 in the first six months of 2012, while losses from prepayment of borrowings amounted to $1,023,000 in the first six months of 2013 as compared to $143,000 in the same period of 2012.

  

  • Noninterest expenses, excluding losses from prepayment of borrowings, totaled $8,520,000 in the second quarter 2013, down slightly from $8,553,000 in the first quarter 2013 and up $199,000 (2.4%) over the second quarter 2012. For the six months ended June 30, 2013, total noninterest expenses of $17,073,000 were $339,000 (2.0%) higher than the corresponding total for the first six months of 2012. Pensions and other employee benefit costs were $221,000 lower in the second quarter 2013 than in the first quarter, reflecting normal timing of payroll taxes and similar expenses which are typically highest in the first quarter of each year. For the six months ended June 30, 2013, pensions and other employee benefit costs were $167,000 lower than the total for the first six months of 2012, as health insurance expense associated with C&N’s partially self-insured plan was lower due to a lower amount of claims. In the second quarter 2013, C&N incurred professional fees expense (included in other operating expense) of $315,000 from a consulting project related to debit card operations and electronic funds processing, for which management expects the consultants’ services to result in increases in noninterest revenue and reductions in noninterest expense going forward, most significantly from an estimated total reduction in expense of $1.9 million for electronic funds processing over the next 5 ½ years.

 

Other Information:

Changes in other unaudited financial information are as follows:

  • Total assets amounted to $1,228,344,000 at June 30, 2013 as compared to $1,240,321,000 at March 31, 2013 and $1,327,527,000 at June 30, 2012.

 

  • Net loans outstanding (excluding mortgage loans held for sale) were $647,772,000 at June 30, 2013 as compared to $659,628,000 at March 31, 2013 and down $49.0 million (7.0%) from $696,777,000 at June 30, 2012. Total nonperforming assets as a percentage of assets was 0.80% at June 30, 2013 as compared to 0.83% at March 31, 2013 and 0.72% at June 30, 2012.

  

  • The outstanding balance of residential mortgages originated by C&N and sold to third parties, with servicing retained, totaled $126,489,000 at June 30, 2013, up from $114,134,000 at March 31, 2013 and up $55,609,000 from one year earlier.

 

  • Deposits and repo sweep accounts totaled $955,156,000 at June 30, 2013, down from $972,611,000 at March 31, 2013 and $1,033,698,000 at June 30, 2012. The decrease in deposits was primarily from a reduction in certificates of deposit, as well as reductions in balances maintained by a few large municipal customers.

 

  • Total shareholders’ equity was $179,361,000 at June 30, 2013, down from $183,208,000 at March 31, 2013 but up from $176,062,000 at June 30, 2012. The reduction in shareholders’ equity in the most recent quarter resulted from a reduction in the net unrealized gain from available-for-sale securities, with the decline in fair value of securities attributable to recent increases in long-term interest rates. Tangible common equity as a percentage of tangible assets was 13.76% at June 30, 2013, up from 12.46% a year earlier.

 

  • Assets under management by C&N’s Trust and Financial Management Group amounted to $727,647,000 at June 30, 2013, an increase of 8.7% 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 – Three Citizens & Northern Bank employees 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.
 
C&N employees attending and receiving the recognition include:
Dawn A. Besse, C&N Executive Vice President and Chief Credit Officer. Mrs. Besse began her banking career in the late 1960s with Northern National Bank and Trust Company (which later merged with Citizens National Bank to form Citizens & Northern Bank). She later joined Citizens National Bank and Trust Company in Wellsville, NY, working for that financial institution through 1984. In 1984, Mrs. Besse joined WSFS in Wilmington, DE and then PNC Bank in Wilmington. After moving to Wellsboro, PA, Mrs. Besse joined C&N in 2000 as EVP/Director of Sales and Service.
 
Justin F. Krellner, Regional Manager of Financial Services Delivery, Vice President and Trust Officer. Mr. Krellner began his banking career in 1972 with Elk County Bank and Trust Company in St. Marys, PA. In 1987 he joined Citizens Trust Company in Coudersport, PA as vice president and trust officer. Citizens Trust merged with Citizens & Northern in 2007. Mr. Krellner holds his BA degree from St. Vincent College in Latrobe, PA and is a graduate of the PBA Trust School, National Trust School and National Graduate Trust School. He has been a Certified Trust and Financial Advisor (CTFA) since 1992. He is a member of the Institute of Management Accountants.
 
Mary J. Wood, Assistant Vice President and Trust Officer. Mrs. Wood began her banking career in 1974 with Commonwealth Bank. She held positions in bookkeeping, later transferring to the Trust department. She joined C&N in 1982 and has held positions as Trust Operations Manager, Administrative Assistant and Administrator. She is a graduate of Bucknell School of Trust, the Cannon Trust School and various other banking schools. She serves as secretary-treasurer of the Middlebury Baptist Church and is a parade organizer for the Pennsylvania State Laurel Festival Parade.
 
Also joining the 40-Year Club, but unable to attend are:
 
Rosalie Hall, C&N Troy Community Office Manager. Mrs. Hall began her banking career in August of 1970 with Citizens National Bank in Towanda, PA. Citizens National later merged with Northern National Bank and Trust Company to form Citizens & Northern Bank. Mrs. Hall worked in Towanda until the C&N Troy office opened in June of 1971. During her banking career, Mrs. Hall worked as a teller and branch operations manager until assuming her current position. She is a graduate of Troy High School and the Central Atlantic Advanced School of Banking. She is a member of the First Baptist Church of Troy and volunteers with the Troy Fair.
 
James Shelmire, Director of MIS Systems Analyst and Programmers. While still in college, Mr. Shelmire began working for C&N part-time as an RPG programmer. Upon his graduation in 1974 he joined C&N full time. He has spent his career in the MIS area of the bank. Mr. Shelmire is a graduate of Williamsport Area Community College and the School for Bank Administration.
 
 
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 bankers, center in all photos, from left, Dawn Besse, Mary Wood and Justin Krellner receive their 40-year awards from PBA Chairman Timothy P. Sissler, left in all photos and PBA Group 4 Chairman Randall E. Black, right in all photos.

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Citizens & Northern Bank has donated $10,000

Posted Monday, 13 May 2013 14:26 | Filed under C&N News

WELLSBORO, PA – Citizens & Northern Bank has donated $10,000 to the Bradford County Regional Arts Council (BCRAC) to help offset the costs associated with converting its three Bradford County theatres to a digital format.
   The three theatres operated by the BCRAC are the Keystone in Towanda, the Sayre Theatre and the Rialto in Canton. All three are located in historic buildings. The total cost of the digital conversion for all three theatres is $300,000.
   “The movie industry’s move from 35mm film to digital projection has left many smaller, independent, mostly rural communities without a local movie house.  Many of these movie houses operated out of historical buildings and theatres such as the BCRAC theatres. Digital conversion has been prohibitively expensive for those communities and as a result, many wonderful buildings will now go unused, many will fall into disrepair,” said Elaine Poost, BCRAC Executive Director. “It has only been through the great community support that the BCRAC theatres have been able to make the leap to digital projection. Citizens and Northern Bank has been a long supporter of the BCRAC arts mission and their generous gift to the digital conversion means that these beautiful, historic theatres will continue to be a vibrant presence in Bradford County.  We are deeply grateful for their gift and their continued support,” she said.
   “Citizens & Northern Bank is pleased to be able to make this contribution,” said C&N Chairman, President and CEO Charles H. Updegraff, Jr. “Our local theatres bring the world to our communities and help make those communities a vibrant place to live and work. We feel that not only does this contribution help maintain local theatres, but it also enables the BCRAC preserve the beautiful historic buildings that house them.”
 
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.

 

Elaine Poost, left, Executive Director of the Bradford County Regional Arts Council, accepts a check for $10,000 from Citizens & Northern Bank’s Michelle Rae, second from left and Melanie Sparbanie, second from right, Business Development Specialists and Denise Manley, right, Sayre Branch Community Office Manager.