Wellsboro, PA – Citizens & Northern Corporation (C&N) announced its unaudited, consolidated financial results for the three-month period ended March 31, 2015.
First quarter 2015 earnings amounted to $0.31 per basic and diluted share as compared to $0.35 per diluted share in the fourth quarter 2014 and $0.34 per diluted share in the first quarter 2014. The return on average assets for the first quarter 2015 was 1.23%, and the return on average equity was 8.08%.
Highlights related to C&N’s earnings results were as follows:
• Net interest income of $9,950,000 in the first quarter 2015 was $261,000 (2.6%) lower than the fourth quarter 2014 amount of $10,211,000. The net interest margin was 3.74% in the first quarter 2015, up slightly from 3.73% in the fourth quarter 2014; however, the reduction in net interest income resulted mainly from two fewer calendar days in the quarter and a 0.7% reduction in average total earning assets. Net interest income for the first quarter 2015 was $168,000 (1.7%) lower than the first quarter 2014 amount. The net interest margin for the first quarter 2015 was 0.15% lower than in the first quarter 2014, mainly due to lower yields on securities and loans.
• The provision for loan losses was $3,000 in the first quarter 2015, down from $123,000 in the fourth quarter 2014. In the first quarter 2014, C&N recorded a credit for loan losses (reduction in expense) of $311,000. The reduction in the provision for loan losses in the first quarter 2015 as compared to the prior quarter included the effects of a slight reduction in qualitative factors used to determine a portion of the allowance for loan losses at the end of the period. The credit for loan losses in the first quarter 2014 included the effects of a net reduction in specific allowances required on impaired loans and a reduction in the collectively determined portion of the allowance resulting from a decrease in loan balances outstanding.
• Noninterest revenue totaled $3,487,000 in the first quarter 2015, which was $315,000 (8.3%) lower than the fourth quarter 2014 amount and $264,000 (7.0%) lower than the first quarter 2014 amount. Included in noninterest revenue in the first quarter 2015
was an $117,000 decrease in the fair value of servicing rights from residential mortgage loans; in comparison, the fair value of servicing rights decreased $62,000 in the fourth quarter 2014 and increased $105,000 in the first quarter 2014. Service charges on deposit accounts fell $191,000 (15.7%) in the first quarter 2015 as compared to the fourth quarter 2014, and $201,000 (16.4%) as compared to the first quarter 2014, primarily as a result of lower net overdraft fees.
• Realized gains from available-for-sale securities totaled $74,000 in the first quarter 2015, down from $210,000 in the fourth quarter 2014 and up from $31,000 in the first quarter 2014.
• Noninterest expenses amounted to $8,464,000, up $214,000 (2.6%) from the fourth quarter 2014 and down $60,000 (0.7%) from the first quarter 2014. The increase in noninterest expenses in the first quarter 2015 as compared to the prior quarter included an increase in pensions and other employee benefits expense of $170,000, reflecting the timing of payroll taxes and other payroll-related expenses that are typically highest in the first quarter of each year. Professional fees expense decreased $150,000 in the first quarter 2015 as compared to the prior quarter as the fourth quarter 2014 total included fees associated with an executive search. Total other operating expense increased $284,000 in the first quarter 2015 as compared to the fourth quarter 2014, as that category included losses on sales of other real estate owned properties of $13,000 in the first quarter 2015 as compared to gains of $185,000 in the fourth quarter 2014. In comparing noninterest expenses for the first quarter 2015 to the first quarter 2014, salaries and wages expense decreased $78,000, including a reduction in stock-based compensation of $55,000 that reflects a longer vesting period associated with awards to executives. Pennsylvania shares tax expense decreased $92,000 in the first quarter 2015 as compared to the first quarter 2014, mainly as a result of an increase in tax credits associated with charitable contributions. Other operating expense increased $35,000 in the first quarter 2015 as compared to the first quarter 2014, including an increase in charitable contributions expense of $86,000.
Changes in other unaudited financial information are as follows:
• Total assets amounted to $1,251,958,000 at March 31, 2015, up from $1,241,963,000 at December 31, 2014 and $1,235,139,000 at March 31, 2014.
• Net loans outstanding (excluding mortgage loans held for sale) were $621,211,000 at March 31, 2015, down 0.3% from $623,209,000 at December 31, 2014, and up 0.6% from $617,475,000 at March 31, 2014.
• The outstanding balance of residential mortgages originated by C&N and sold to third parties, with servicing retained, totaled $151,272,000 at March 31, 2015, down 0.8% from $152,505,000 at December 31, 2014 and up 2.6% from $147,391,000 at March 31, 2014.
• Total nonperforming assets as a percentage of assets was 1.33% at March 31, 2015 as compared to 1.34% at December 31, 2014 and down from 1.44% at March 31, 2014.
• Deposits and repo sweep accounts totaled $982,474,000 at March 31, 2015, up 0.9% from $973,526,000 at December 31, 2014 and up 1.7% from $966,563,000 at March 31, 2014.
• Total shareholders’ equity was $189,103,000 at March 31, 2015, up from $188,362,000 at December 31, 2014 and $184,762,000 at March 31, 2014. Tangible common equity as a percentage of tangible assets was 14.28% at March 31, 2015, up from 14.12% a year earlier. In July 2014, C&N announced a common stock repurchase plan for the repurchase of up to 622,500 shares, or 5% of the total shares outstanding on July 16, 2014. In the first quarter 2015, 155,800 shares were repurchased for a total cost of $3,022,000, at an average price of $19.40 per share. Cumulatively through March 31, 2015, 364,100 shares had been repurchased for a total cost of $7,024,000, at an average price of $19.29 per share.
• Assets under management by C&N’s Trust and Financial Management Group amounted to $832,550,000 at March 31, 2015, an increase of 4.4% 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.
Pictured from left: Community Office Managers Liz Johnson & Ginger Reap; Jennifer Spencer, Executive Director Bradford County Humane Society; Jennifer Schultz, Trust Administrator, Sayre Office
ULSTER, PA – Citizens & Northern Bank proudly presented The Bradford County Humane Society (BCHS) with a $250 check in support of its “Paws for Celebration” event. The event featured a delicious dinner, silent auction items, 50/50 and dancing. All proceeds supported their mission to provide shelter, food and veterinary care to abandoned, homeless and stray animals.
Every year, almost 1,000 animals find their way into the BCHS’s shelter doors. Many are dogs and cats that are abused or neglected. They all have their stories and their own personalities but all deserve a second chance. Thus, C&N is proud to be a Silver Sponsor of the “Paws for Celebration” event and the Bradford County Humane Society.
WELLSBORO, PA - The Sullivan County Scholarship Fund was created by Alton Taylor to benefit graduating high school seniors of Sullivan County School District. Applicants are currently sought for the 2015 fall semester. Completed applications are due to the high school guidance office by Wednesday, April 22, 2015 or to a Citizens & Northern Bank branch office by Monday, April 27, 2015. Applicants must submit proof of their acceptance to an accredited college, university or trade school. While primary consideration will be given to financial need, academic promise is also considered.
Students interested in more information may contact Citizens & Northern Bank's Trust and Financial Management Group at 888-760-8192, visit the C&N website at www.cnbankpa.com/trust-and-investments/scholarships-grants or contact the high school guidance counselor.
Pictured from left: Community Office Managers Leslie Raymond, Wysox and Jenelle Selleck, Towanda; Mark Elsbree, AVP/Business Development Sales Officer, Sayre; Denise Manley, Community Office Manager, Troy; Jesse Phillips, Owner and Board Member of the Bradford Holstein Club; Samantha Hayes, Bradford County Extension Assistant; Amberleigh Packard, 4-H Coordinator
TROY, PA – Citizens & Northern Bank has donated $500 to The Bradford County 4-H in support of its annual Calf and Heifer Sale at Alparon Park in Troy, PA. Through its partnership with the Bradford County Holstein Association, the 4-H consigns some of the best quality calves and heifers in the state and the event serves as one of the organization’s largest fund raisers.
The C&N team traveled to Jesse Phillips’s farm in Sheshequin and took the picture with the calf he and Brian Cook are consigning to the sale. The calf's name is VT Pond View Acme Ava-ET.
“Jesse Phillips is a great example of what 4-H can do. He did not grow up on a dairy farm, but through 4-H he was introduced to farming. He now owns his own herd of registered Holstein cows and is a board member of the Bradford County Holstein Club and board member of the Bradford County Extension,” said Mark Elsbree, who is also an active 4-H volunteer.
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 2015 fall semester. The application deadline is April 15,
2015. 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 Citizens & Northern Bank 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 50l (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, a division of Citizens & Northern Bank, maintains offices in Wellsboro, Sayre, Towanda, Williamsport, Coudersport and Emporium in Pennsylvania and Canisteo in New York. 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 theWilliam Bowen Copp and Graydon S. Copp Agriculture Education Trust.
Applicants are sought for the 2015 fall semester. The application deadline is April 15, 2015.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, visit the C&N website at www.cnbankpa.com (Click on Trust & Investments, then Scholarships and Grants) 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 fromNorthern and Southern Tioga School Districts and theWellsboro 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.
The C&N Trust and Financial Management Group, a division of Citizens & Northern Ban1c, maintains offices in Wellsboro, Sayre, Towanda, Williamsport, Coudersport and Emporium in Pennsylvania and Canisteo inNew York. The Division, founded in 1960, provides a wide range of investment, trust and retirement plan services to individuals and organizations.