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C&N Announces Annual And Fourth Quarter 2011 Unaudited Financial Results

Posted Wednesday, 18 January 2012 17:01 | Filed under C&N News

WELLSBORO, PA- Citizens & Northern Corporation (C&N) has announced its unaudited, consolidated financial results for the fourth quarter 2011 and for the year ended December 31, 2011.

For the year ended December 31, 2011, net income available to common shareholders was $23,368,000, or $1.92 per basic and diluted share, up 32.4% over net income per share of $1.45 in 2010. In the fourth quarter 2011, net income of $6,141,000, or $0.51 per share, was up 4.1% as compared to net income per share of $0.49 in the third quarter 2011 and 27.5% higher than net income per share of $0.40 in the fourth quarter 2010.

Some of the more significant fluctuations in the components of annual earnings are as follows:

  • Net interest income was $4,831,000 (11.3%) higher in 2011than 2010. The improvement in 2011 has resulted from several factors, including reductions in cost of funds, reduction in outstanding borrowings and lower balances maintained in overnight investment with the Federal Reserve and other banks. In 2011, net interest income includes the benefit of accretion of $826,000 from the offset of a previous write-down on a security, with a corresponding benefit of $83,000 recorded in 2010.

  • The provision for loan losses was a credit (reduction in expense) of $285,000, as compared to a provision of $1,191,000 in 2010. The credit for loan losses in 2011 resulted, in part, from a reduction in loans outstanding, as the general component of the allowance for loan losses was reduced. Further, 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 $13,938,000 in 2011, up $100,000 over 2010, despite an impairment loss in 2011 of $948,000 related to an investment in a real estate limited partnership. In 2011, noninterest revenue included net gains from sales of premises and equipment totaling $324,000, including a gain in the third quarter of $329,000 from sale of the banking facility at 130 Court Street, Williamsport, PA. The Corporation has entered into a leasing arrangement to continue to utilize a portion of the facility and continues to provide retail, trust and commercial banking services at the location. In 2010, noninterest revenue included net gains from sales of premises and equipment totaling $445,000. Excluding gains from sales of premises and equipment and the impairment loss, noninterest revenue for 2011 totaled $14,562,000, or 8.7% higher than the corresponding 2010 amount. In 2011, revenues increased significantly over 2010 from origination and sale of mortgage loans, interchange on debt card transactions, service charges on deposit accounts, brokerage services and other operating income.

  • Gains from available-for-sale securities totaled $2,216,000 in 2011, considerably higher than the total gains of $829,000 realized in 2010. 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 $32,057,000 in 2011, up $567,000, or 1.8%, over 2010. Total salaries and wages for 2011 were $690,000 (6.1%) higher than in 2010, including an increase in total employee stock-based compensation of $319,000. Pensions and employee benefits expense was $567,000 (14.8%) higher in 2011 than in 2010, including higher estimated self-insured employee health insurance expense. Furniture and equipment expense was $171,000 (8.1%) lower in 2011 as compared to 2010, as depreciation expense was lower due to some computer-related hardware and software becoming fully depreciated. FDIC assessments were $618,000 (42.6%) lower in 2011 than in 2010, reflecting the benefit of changes in the FDIC’s method for determining assessments and improvements in C&N’s financial data that impact the amounts assessed.

  • The provision for income taxes totaled $8,714,000 or 27.2% of pre-tax income in 2011, up from $5,800,000 or 23.3% of pre-tax income in 2010. The provision for income taxes was higher in 2011 than in 2010 primarily because of the increase in pre-tax income. Also, the provision for income tax in 2010 included a benefit (reduction in expense) of $373,000 resulting from reduction in a valuation reserve.

  • In the third quarter 2010, C&N redeemed preferred stock that had previously been issued, and has had no preferred stock outstanding and no corresponding dividend costs in 2011. In 2010, earnings available for common shareholders were impacted by dividends paid on preferred stock totaling $1,474,000.

Quarterly Results:

Fourth quarter 2011 net income was $6,141,000, or $0.51 per basic and diluted common share, as compared to $5,989,000 ($0.49 per share) in the third quarter 2011. Net interest income was $185,000 (1.5%) higher in the fourth quarter as compared to the third quarter 2011, reflecting a lower average cost of funds and an increase of $97,000 in accretion from a previously written-down security. C&N continued to benefit from favorable loan loss experience, recording a credit for loan losses of $87,000 in the fourth quarter, as compared to a credit for loan losses of $37,000 in the third quarter. Noninterest revenue was $288,000 lower in the fourth quarter 2011 than in the third quarter, as third quarter results included the gain from sale of the Williamsport property referred to above. Gains from sales of securities totaled $188,000 in the fourth quarter 2011, up $162,000 over the third quarter, and noninterest expense was $104,000 lower than the third quarter.

Fourth quarter 2011 net income was $1,257,000 higher than fourth quarter 2010 net income of $4,884,000 ($0.40 per share). Net interest income in the fourth quarter 2011 was $1,204,000 higher than in the fourth quarter 2010, mainly due to a lower average cost of funds, and also reflecting the benefit of an increase of $243,000 in accretion from the previously written-down security. The credit for loan losses of $87,000 in the fourth quarter 2011 compares with a provision for loan losses of $719,000 in the fourth quarter 2010.

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C&N HR Director Earns Certification

Posted Wednesday, 11 January 2012 16:03 | Filed under C&N News

Tracy Watkins

Tracy Watkins

WELLSBORO, PA – Tracy E. Watkins, Citizens & Northern Bank vice president and director of human resources, has earned certification as a Certified Employee Benefit Specialist (CEBS). She is also certified as a Retirement Plans Associate (RPA) and Group Benefits Associate (GBA).

An eight-year C&N employee, she holds her BS degree in English and secondary education from Juniata College and is a graduate of The Institute of Paralegal Training, the Graduate School of Banking at the University of Wisconsin at Madison, and the Pennsylvania Bankers Association Advanced School of Banking. She also is credentialed as a Senior Professional in Human Resources (SPHR).

Watkins and her two sons live in Covington.

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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Norton Scholarship Applicants Sought

Posted Tuesday, 10 January 2012 15:51 | Filed under C&N News

norton-scholarship

William and Margaret Norton

SHINGLEHOUSE, PA – Applicants are being sought for the William and Margaret Norton Scholarship Trust. The trust was created by the Nortons upon their deaths and is designed to help graduates of Oswayo Valley High School afford a post secondary education. The scholarship is open to all graduates of Oswayo Valley High School in Potter County.

The scholarship may be used for any type of post secondary education including conventional baccalaureate programs as well as vocational and trade school programs, associate degree and graduate school programs.

It was the Nortons' preference that the scholarship committee favors applicants who pursue post secondary education immediately following high school graduation. The Nortons also requested that the committee consider applicants who demonstrate good citizenship, character, values and motivation, academic merit, educational achievement or academic or educational promise and a degree of financial need.

Applications are currently available in the Oswayo High School guidance office. Application deadline is April 13, 2012. Citizens & Northern Bank serves as the trustee of the Norton Scholarship Trust.

William N. Norton died Dec. 31, 2003 and his wife, Margaret, died May 5, 2008. William Norton was a former Shinglehouse mayor and businessman. He and his wife operated the William N. Norton Co., a block manufacturing and building supply company, later renamed Norton's Building Supply. He was a life member and former fire chief of the Shinglehouse Volunteer Fire Department and helped organize the Shinglehouse Volunteer Ambulance Association. The Nortons were both very active members of their community.
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C&N To Reopen Athens Office

Posted Friday, 18 November 2011 15:07 | Filed under C&N News

Athens Office Flooding

Flood waters invade C&N's Athens
office during the September flooding.

ATHENS, PA – Citizens & Northern Bank’s Athens office, severely damaged by flood waters in September, will be renovated and will re-open in the same location – 428 South Main Street.

The C&N Board of Directors made the announcement at their board meeting Thursday.

The office and most of its contents were destroyed in this disaster, which impacted hundreds of families and businesses in the community. It is anticipated that renovations will take approximately three to four months, said Charles H. Updegraff, Jr., C&N chairman, president and CEO.

“Citizens & Northern has been committed to the valley since C&N merged with Farmers National Bank in 1984. We are well aware that the bank has been a fixture in the Athens community since Farmers opened there in 1893,” Updegraff said. “We look forward to once again serving our customers from the Athens location.”

Until the Athens office re-opens, the Athens staff is working from the Sayre office at 1827 Elmira Street. Customers can check on progress at the Athens office on the bank’s Facebook page: www.facebook.com/citizensandnorthernbank.

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, 20 October 2011 15:12 | 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 $0.16 per share. The record date is November 1, 2011 and it is payable on November 14, 2011 to shareholders of record. The amount is increased from the previous dividend of $0.15 per share, which was paid in August, 2011, and is the seventh consecutive quarterly increase in the dividend.

Declaration of the dividend was made at the October 20, 2011 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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Lisa Cook Completes PBA Advanced School of Banking

Posted Wednesday, 19 October 2011 18:27 | Filed under C&N News

Lisa Cook

Lisa Cook

WELLSBORO, PA - Lisa Cook, Citizens & Northern Bank Tioga Branch Manager, has graduated from the 2011 PBA Advanced School of Banking held at the Penn Stater Conference Center in State College.

Cook, a C&N assistant vice president, is a 10-1/2 year C&N employee, having previously served the bank as a teller, loan officer, compliance specialist and IRA administrator. She is a graduate of Cowanesque Valley High School and a 2008 graduate of the PBA School of Banking.

Cook and her husband, Michael, have three children and live in Elkland.

The PBA Advanced School of Banking is a three-year program that builds and expands the knowledge acquired at the PBA School of Banking. The program is designed for professionals looking to continue their educational experience in addition to those preparing to lead at upper level positions within their organizations.

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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