WELLSBORO, PA – Citizens & Northern Corporation (C&N) has announced its unaudited, consolidated financial results for the three-month period ended March 31, 2013.
Net income was $4,706,000, or $0.38 per basic and diluted share in the first quarter 2013, representing an annualized return on average assets of 1.50% and an annualized return on average equity of 10.31%. Net income in the first quarter 2013 was down from $0.48 per share in the fourth quarter 2012 and $0.46 per share in the first 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. Security gains in the most recent quarter included a gain of $571,000 from sale of a pooled trust-preferred security that had been written off in previous years. Also in the first quarter 2013, net realized gains from bank stocks totaled $497,000 and net gains from sales of other securities totaled $91,000. In the most recent quarter, C&N prepaid principal of $7 million on a long-term borrowing (repurchase agreement), with an average rate of 3.595%, resulting in the loss on prepayment of $1,023,000. Management estimates the effect of prepaying the $7 million portion of the borrowing, as opposed to reinvesting in securities at current market yields, will be an after-tax benefit of $75,000 over the next 12 months. After the effect of the prepayment, the remaining balance of long-term borrowings under repurchase agreements was $61 million at March 31, 2013.
First quarter 2013 net income was $1,233,000 lower than the fourth quarter 2012 amount. Net interest income of $11,047,000 was down $544,000 from the fourth quarter 2012, reflecting a lower average volume of earning assets and the effects of 2 fewer days in the most recent quarter. The provision for loan losses was $183,000 in the first quarter 2013 as compared to a credit for loan losses (reduction in expense) of $133,000 in the fourth quarter 2012. The provision for loan losses in the first quarter 2013 resulted mainly from increases in the general portion of the allowance for loan losses, based on increases in the average net charge-offs and qualitative factors used to determine the general portion of the allowance. In contrast, the credit for loan losses in the fourth quarter 2012 resulted mainly from a reduction in the general portion of the allowance, as total loans outstanding decreased during the quarter. Noninterest revenue totaled $3,843,000 in the first quarter 2013, down from $4,327,000 in the fourth quarter 2012, as seasonality and other factors led to reductions in service charges on deposit accounts, Trust and financial management revenue and net gains from sales of mortgage loans. As described above, realized gains from available-for-sale securities totaled $1,159,000 in the first quarter 2013, as compared to net realized gains from sales of securities of $51,000 in the fourth quarter 2012. First quarter 2013 results included the loss of $1,023,000 from prepayment of borrowings (described above) for which there was no corresponding amount in the fourth quarter 2012. Noninterest expenses totaled $8,553,000 in the first quarter 2013, excluding the loss on prepayment of borrowings, an increase of $599,000 over the fourth quarter 2012 total. The increase in noninterest expenses in the most recent quarter included several timing-related items, including payroll taxes and stock-based compensation that are typically highest in the first quarter of a year. The income tax provision of $1,584,000 (25.2% of pre-tax income) was $625,000 lower in the first quarter 2013 as compared to the previous quarter, reflecting lower pre-tax income.
First quarter 2013 net income was $881,000 lower than the first quarter 2012 total, including a reduction in net interest income of $1,227,000 (10.0%). The lower level of net interest income in 2013 includes the effects of margin compression due to reductions in long-term interest rates, as C&N’s fully taxable equivalent net interest margin of 4.18% was 0.23% lower than the corresponding first quarter 2012 margin. Also, first quarter 2012 net interest income included accretion income of $457,000 related to the recovery of a previously written down security that matured (with payment in full received) in the second quarter 2012. Other factors that significantly affected first quarter 2013 net interest income in comparison to 2012 included a lower average balance of loans outstanding (down $27.4 million), as well as reductions in average total deposits (down $27.7 million) and borrowed funds (down $35.5 million).
Changes in other unaudited financial information are as follows:
· Total assets amounted to $1,240,321,000 at March 31, 2013 as compared to $1,286,907,000 at December 31, 2012 and $1,316,764,000 at March 31, 2012.
· Net loans outstanding (excluding mortgage loans held for sale) were $659,628,000 at March 31, 2013 as compared to $677,053,000 at December 31, 2012 and down 4.4% from $690,218,000 at March 31, 2012. Total nonperforming assets as a percentage of assets was 0.83% at March 31, 2013 as compared to 0.82% at December 31, 2012 and 0.70% at March 31, 2012.
· The outstanding balance of residential mortgages originated by C&N and sold to third parties, with servicing retained, totaled $114,134,000 at March 31, 2013, an increase of $51,788,000 from one year earlier.
· Deposits and repo sweep accounts totaled $972,611,000 at March 31, 2013, down from $1,011,673,000 at December 31, 2012 and $1,020,831,000 at March 31, 2012. The decrease in deposits was primarily from a reduction in certificates of deposit, including reductions from a few large municipal customers.
· Total shareholders’ equity was $183,208,000 at March 31, 2013, up from $182,786,000 at December 31, 2012 and $171,614,000 at March 31, 2012. Tangible common equity as a percentage of tangible assets was 13.93% at March 31, 2013, up from 12.22% a year earlier.
· Assets under management by C&N’s Trust and Financial Management Group amounted to $737,298,000 at March 31, 2013, an increase of 8.6% 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.
Vice President, Marketing Director
Citizens & Northern Bank
90-92 Main Street
Wellsboro, PA 16901
Web Page: https://www.cnbankpa.com
WELLSBORO, PA - Two Citizens & Northern Bank employees have been recognized for a combined 35 years of service to the financial institution.
Recognized during the March service awards luncheon were:
Leslie Raymond, Wysox Community Office Manager, 20 years.
Georgia Cary, Coudersport Customer Service Representative, 15 years.
Service awards luncheons are held regularly and hosted by C&N Chairman, President and CEO Charles H. Updegraff, Jr. In 2013, C&N will recognize20 employees for a total of 300 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.
Charles H. Updegraff, Jr., center, presented service awards to Georgia Cary, left, and Leslie Raymond.
GALETON, PA. – Current high school seniors attending Galeton Area High School accepted to an accredited college, university or trade school are invited to apply for scholarships offered through the William & L.R. Gale Community Foundation a/k/a The Galeton Foundation.
Applications are sought for the 2013 fall semester. The application deadline is April 15, 2013. Applicants must have a cumulative grade point average of at least 2.0 and the student and parent(s)/guardian(s) must have been residents of the Galeton Area School District for at least one full school calendar year prior to application for the scholarship. If a scholarship is awarded to a student, that student and his/her parent(s)/guardian(s) must remain residents of the Galeton Area School District for the duration of the scholarship.
Students interested in more information may contact the C&N Trust and Financial Management Group at 800-487-8784 or visit the C&N website at www.cnbankpa.com and click on "Trust & Investments", then the "Scholarships & Grants" link or contact the Galeton High School Guidance office.
The Gale family came to the Pine Creek Valley in 1880 and built the largest sole leather tannery in the U.S. at the junction of Pine Creek and West Branch. The tannery employed over 200 people and was the life blood of the community for over 50 years. Nearly 100 years after William Gale arrived here, his granddaughter, Lucille Gale Knapp returned to Galeton and fell in love with the area. In 1988 Mrs. Knapp established the William and L.R. Gale Community foundation to honor the memory of her father L. R. Gale and grandfather, William. Recently the Foundation applied for approval to award scholarships to Galeton Area High School Seniors meeting the above criteria. In past years the foundation has supported Galeton area charitable organizations with many of their community projects and plans to continue to do so in addition to funding the scholarship program. The Foundation is a 501(c)(3) organization and welcomes contributions to grow the fund to help assist charitable organizations in the Galeton area and provide scholarships for Galeton high school seniors.
The C&N Trust and Financial Management Group serves as Trustee for the Foundation.
WELLSBORO, PA. – High school seniors pursuing studies in medicine, education or engineering are invited to apply for a scholarship offered through the Joseph R. Every Scholarship Fund.
Applicants are sought for the 2013 fall semester. Completed applications are due to the student's high school guidance office by Monday, April 1, 2013 or to a Citizens & Northern Bank branch office by Wednesday, April 3, 2013. Applicants must be a high school senior or graduate of a public or non-public high school in Bradford or Tioga County, PA or Chemung County, NY. Applicants must be accepted to an accredited college, university or professional school in a program leading to a degree in education or medicine, including medical research for human diseases. If too few students apply with those majors, preference will be given to students who express an interest in the fields of civil, mechanical, electrical or metallurgical engineering, or any other field that would improve society.
In addition, applicants must have a cumulative grade point average of at least 2.0. Consideration will be given to financial need.
Students interested in more information may contact Citizens & Northern Bank's Trust and Financial Management Group at 888-987-8784 or their high school guidance counselors.
The Joseph R. Every Scholarship Fund was created under the Last Will and Testament of Joseph R. Every, who died Sept. 8, 2005. Citizens & Northern's Trust and Financial Management Group serves as Trustee of the annual award.
Joseph R. Every was a long-time operator of a construction business and had a great desire to help area students pursue higher education. His intent was to provide scholarships to well-deserving seniors and graduates from public and non-public high schools in Bradford, Tioga and Chemung counties. Mr. Every believed that special consideration should be given to average students with ambition and the potential to contribute positively to society. In addition, he directed that the successful recipient of funds must not smoke tobacco or use illegal drugs or alcoholic beverages.
The scholarship award will be for the first year of higher education only and will be in an amount determined by the Selection Committee. A maximum award of $10,000 may be made. Funds may be used to help pay for tuition, books and room and board. Payments from the trust will be made directly to the university or college the recipient attends.
Under the terms of Mr. Every's will, final scholarship awards will be determined by a Selection Committee comprised of four employees of Citizens & Northern Bank, scholarship fund Trustee, and one representative of the Finance Committee of Holy Child Roman Catholic Church in Mansfield.
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.
WELLSBORO, PA. – High school seniors pursuing studies in agriculture are invited to apply for a scholarship offered through the William Bowen Copp and Graydon S. Copp Agriculture Education Trust.
Applicants are sought for the 2013 fall semester. The application deadline is April 15, 2013. An applicant must be a high school senior accepted to an accredited college or university in a program leading to a degree in a curriculum directly related to agriculture, have a cumulative grade point average of at least 2.0, demonstrate financial need, be a Tioga County, PA resident for at least six months and graduate from a Tioga County High School.
Students interested in more information may contact Citizens & Northern Bank's Trust and Financial Management Group at 800-487-8784 or their high school guidance counselors.
The $1.4 million William Bowen Copp and Graydon S. Copp Agriculture Education Trust will distribute scholarships annually. The trust was created under the Last Will and Testament of Graydon S. Copp, who died July 7, 2002. Graydon and his brother, William Bowen Copp, operated a farm located in Charleston and Covington townships in Tioga County, PA. The brothers lived and operated the same farm as their grandparents and parents until 1982 when William died. Neither brother ever married, but they were well known by their neighbors, friends and relatives as accomplished farmers and generous individuals.
The Copps were known for sharing their food, money, machinery and time with friends and neighbors. Graydon, who loved cats and was very active in hunting, flying, motorcycling and maintaining the family cemetery, always considered education very important. During World War II he dropped out of school to help his family on the farm. Following the war, he returned to school and graduated from the Charleston High School.
Graydon's generosity will continue for years to come as his 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. This 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 will be determined each year by the Scholarship Committee, which consists of the trustee – Citizens & Northern Bank's Trust and Financial Management Group – and the superintendents from Northern and Southern Tioga School Districts and the Wellsboro Area School District. The committee will decide the number of recipients and amounts awarded annually. The scholarship award may be used to help pay for tuition, books, and room and board.
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 record date is February 4, 2013 and it is payable on February 15, 2013 to shareholders of record. The amount is increased from the previous dividend of $0.24 per share, which was paid in November, 2012.
Declaration of the dividend was made at the January 24, 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.