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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, 2014.
 
Net income in the third quarter 2014 totaled $4,267,000, or $0.34 per basic and diluted share, up from $0.33 per share in the second quarter 2014 and down from $0.38 per share in the third quarter 2013.  For the nine months ended September 30, 2014, net income was $12,718,000, or $1.02 per basic and diluted share, down from $1.16 per share for the first nine months of 2013.  Earnings results for the nine months ended September 30, 2014 reflected an annualized return on average assets of 1.37% and an annualized return on average equity of 9.18%.
 
Highlights related to C&N’s earnings results were as follows:
 
·        Net interest income of $10,285,000 in the third quarter 2014 was up slightly from the second quarter 2014, reflecting increases compared to the prior quarter in average balances of deposits of $14,979,000, available-for-sale securities of $9,548,000 and loans outstanding of $4,321,000.  Third quarter 2014 net interest income was down 3.3% from the third quarter 2013 and net interest income for the first nine months of 2014 was down $1,942,000 (6.0%) from the first nine months of 2013.  Yields earned on securities and loans have fallen by more than interest rates paid on deposits and borrowings over the course of 2013 and the first nine months of 2014.  The net interest margin was 3.75% in the third quarter 2014, down from 3.84% in the second quarter 2014 and 3.97% in the third quarter 2013.  For the first nine months of 2014, the net interest margin was 3.82% as compared to 4.10% for the first nine months of 2013.  The average balance of loans outstanding was $33.3 million (5.0%) lower in the first nine months of 2014 as compared to the first nine months of 2013.
 
·        The provision for loan losses was $218,000 in the third quarter 2014 as compared to $446,000 in the second quarter 2014 and $239,000 in the third quarter 2013.  For the first nine months of 2014, the provision for loan losses totaled $353,000, down from $488,000 for the first nine months of 2013.
     
·        Noninterest revenue of $3,887,000 in the third quarter 2014 was down $93,000 (2.3%) from the second quarter 2014, and down $406,000 (9.5%) from the third quarter 2013.  For the first nine months of 2014, noninterest revenue was $709,000 (5.8%) lower than in the first nine months of 2013.  Gains from sales of residential mortgage loans totaled $557,000 in the first nine months of 2014, down from $1,560,000 in the first nine months of 2013, reflecting lower volume from refinancing activity.  Total Trust and brokerage revenue of $4,007,000 in the first nine months of 2014 was $399,000 (11.1%) higher than the total in the first nine months of 2013.
 
 
·        In the third quarter 2014, realized gains from available-for-sale securities totaled $760,000, including gains from sales of mortgage-backed securities and other debt securities totaling $471,000 and gains from sales of equity securities (bank stocks) totaling $289,000.  In comparison, realized gains from available-for-sale securities totaled $103,000 in the second quarter 2014 and $193,000 in the third quarter 2013.  Realized gains from available-for-sale securities totaled $894,000 in the first nine months of 2014, while in the first nine months of 2013 realized gains from securities totaled $1,452,000 and losses from prepayment of borrowings totaled $1,023,000.
 
·       Noninterest expenses totaled $9,036,000 in the third quarter 2014, up from $8,347,000 in the second quarter 2014 and $8,610,000 in the third quarter 2013.  In the third quarter 2014, salaries and wages expense increased $702,000 over the second quarter 2014, and $812,000 over the third quarter 2013, mainly because of severance expenses.  In the first nine months of 2014, total noninterest expenses, excluding losses from prepayment of borrowings, were $224,000 (0.9%) higher than in the first nine months of 2013.  Salaries and wages expense increased $788,000 in the first nine months of 2014 as compared to the corresponding period in 2013, mainly as a result of severance benefits, and pensions and other employee benefit expenses increased $398,000, mainly due to higher health care costs.  Professional fees expense was $997,000 lower in the first nine months of 2014 as compared to the first nine months of 2013, as the total in 2013 included fees associated with projects designed to identify sources of noninterest revenue and reductions in debit card and ATM processing expense.                
 
Other Information:
Changes in other unaudited financial information are as follows:
 
·        Total assets amounted to $1,256,533,000 at September 30, 2014, as compared to $1,256,205,000 at June 30, 2014 and up 1.9% from $1,232,952,000 at September 30, 2013.
 
·        Net loans outstanding (excluding mortgage loans held for sale) were $621,960,000 at September 30, 2014, up from $614,347,000 at June 30, 2014 and down $19.4 million (3.0%) from $641,345,000 at September 30, 2013.
        
·        The outstanding balance of residential mortgages originated by C&N and sold to third parties, with servicing retained, totaled $150,695,000 at September 30, 2014 as compared to $150,725,000 at June 30, 2014 and up $12.6 million (9.1%) from $138,074,000 at September 30, 2013.
 
·        Total nonperforming assets as a percentage of assets was 1.45% at September 30, 2014, up slightly from 1.44% at June 30, 2014 and up considerably from 0.83% at September 30, 2013.  The increase in this ratio has resulted mainly from classification of two large commercial loans as nonaccrual.
 
·        Deposits and repo sweep accounts totaled $988,294,000 at September 30, 2014, up from $983,876,000 at June 30, 2014 and up $20.0 million (2.1%) from $968,298,000 at September 30, 2013.
 
·        Total shareholders’ equity was $186,874,000 at September 30, 2014, down slightly from $189,173,000 at June 30, 2014 and up from $181,206,000 at September 30, 2013.  Tangible common equity as a percentage of tangible assets was 14.05% at September 30, 2014, up from 13.86% 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.  Through September 30, 2014, 129,000 shares had been repurchased for a total cost of $2,464,000, at an average price of $19.10 per share.
 
·        Assets under management by C&N’s Trust and Financial Management Group amounted to $812,376,000 at September 30, 2014, an increase of 6.8% from a year earlier, reflecting the effect of new accounts as well as net appreciation in asset values.

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WELLSBORO, PA - Eight Citizens & Northern Bank employees have been recognized for a combined 120 years of service to the financial institution.
 
Recognized during the September/October service awards luncheon were:

  • Larry Alderson, Regional Manager of Financial Services Delivery, working from the Sayre office, 15 years.
  • Robert Baker, Customer Service Representative in the Monroeton office, 10 years.
  • Barbara Clinger, Customer Service Representative in the Emporium office, 20 years.
  • William Holmes, Business Development Sales Officer, working from the Troy office, 25 years.
  • Linda Koeppel, Customer Service Representative in the Wellsboro office, 20 years.
  • Jessica Loper, Customer Service Representative in the Hornell office, 10 years.
  • Kenna Marshall, Resource Recovery Administrative Assistant, working from the Muncy office, 10 years.
  • Brenda Mitchell, South Williamsport Community Office Manager, 10 years.

 

Service awards luncheons are held regularly and hosted by C&N Interim President and CEO Mark A. Hughes. In 2014, C&N will recognize 36 employees for a total of 545 years of service to Citizens & Northern Bank.

 

Mark A. Hughes, back, second from left, interim C&N President and CEO, presented service awards to: Front, from left, Kenna Marshall, Brenda Mitchell, Jessica Loper, Barbara Clinger and Linda Koeppel and back, from left, William Holmes, Robert Baker and Larry Alderson.

Sept service winners photo

 

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COUDERSPORT, PA – Courtney Cole has been named Vice President/Commercial Loan Sales Officer with Citizens & Northern Bank. He is working from the bank’s Coudersport office, 10 North Main Street.
 
Cole has over 32 years of commercial lending experience. He is an honors graduate of the Stonier Graduate School of Banking and a graduate of numerous other banking schools. Prior to joining the C&N lending team he worked as Vice President of Commercial Banking at S&T Bank in DuBois, Loan Officer/Business Development at Integra Bank in Punxsutawney and Pennbank/Integra Bank in Bradford.
 
Prior to his banking career, Cole served as a sergeant in the U.S. Marine Corps. He also served more than 22 years as a combat engineer with the Pennsylvania National Guard, U.S. Army. He served overseas during Operation Enduring Freedom and Operation Iraq Freedom, retiring as First Sergeant. He was awarded the Bronze Star for Meritorious Service in combat.
 
Active in his community, he is a past assistant district governor of Rotary International, a member of the Coudersport Rotary Club and a member and past chairman of the North Central PA Workforce Investment Board.
 
Cole and his wife, Kristine, live in Roulette.

 

Courtney Cole

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WELLSBORO, PA - Citizens & Northern Corporation announced today the retirement and accepted the resignation of Charles H. Updegraff, Jr. as Chairman, President and Chief Executive Officer.  Mr. Updegraff also resigned as a member of the Board of the Company and as Chairman, President and CEO of Citizens & Northern Bank, the Company's wholly owned banking subsidiary.
 
Mark A. Hughes, currently Executive Vice President and Chief Financial Officer of the Bank, and Treasurer and Chief Financial Officer of the Company, has been appointed Interim President and CEO of the Company and Bank.
 
Anthony Peluso, the current Controller of the Bank also has been appointed as Treasurer of the Company and Interim Chief Financial Officer of the Company and the Bank.
 
The Executive Committee of the Board will act as a Search Committee to seek a permanent replacement for Mr. Updegraff.  The Committee will consider both internal and external candidates.
 
Mr. Updegraff joined the Company in 2007 and has been President and CEO of the Company and Bank since 2010.  On  behalf of the Board of Directors, James E. Towner, Lead Director, stated:  "During his tenure, the bank increased profitability and positioned itself to remain competitive in the ever changing financial services industry.  We wish him well in his future endeavors."

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WELLSBORO, PA - Four Citizens & Northern Bank employees have been recognized for a combined 40 years of service to the financial institution.
 
Recognized during the July service awards luncheon were:
Darci Baird, Senior Financial Consultant in the Sayre office, 10 years.
Leslie Fassett, Monroeton Community Office Manager, 10 years.
Joseph Kilmer, Financial Consultant in the Coudersport office, 10 years.
Melissa Peters, Customer Service Representative based in the Towanda office, 10 years.
 
Service awards luncheons are held regularly and hosted by C&N Chairman, President and CEO Charles H. Updegraff, Jr. In 2014, C&N will recognize 36 employees for a total of 545 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.
 
CAPTION:  Charles H. Updegraff, Jr., C&N chairman, president, and CEO, left, presented service awards to Leslie Fassett and Melissa Peters, front, from left and Darci Baird and Joseph Kilmer, back.

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C&N ANNOUNCES SECOND QUARTER 2014 UNAUDITED FINANCIAL RESULTS

Posted Monday, 14 July 2014 09:20 | Filed under C&N News


WELLSBORO, PA – Citizens & Northern Corporation (C&N) has announced
its unaudited, consolidated financial results for the three-month and
six-month periods ended June 30, 2014.

Second quarter 2014 net income of $4,163,000, or $0.33 per basic and
diluted share, was down slightly from $0.35 per basic share and $0.34
per diluted share in the first quarter 2014 and down from $0.40 per
basic and diluted share in the second quarter 2013.  Net income for the
six months ended June 30, 2014 totaled $8,451,000, or $0.68 per basic
and diluted share, representing an annualized return on average assets
of 1.38% and an annualized return on average equity of 9.16%.  Net
income for the first six months of 2014 was down from $0.78 per share
for the first six months of 2013.

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

● Net interest income totaled $10,273,000 in the second quarter 2014,
up from $10,118,000 in the first quarter 2014 and down 6.1% from
$10,940,000 in the second quarter 2013.  For the first six months of
2014, net interest income of $20,391,000 was down $1,596,000 (7.3%) from
the first six months of 2013.  In 2013 and the first six months of 2014,
yields earned on securities and loans have fallen by more than interest
rates paid on deposits and borrowings.  Also, the average balance of
loans outstanding was $38.2 million (5.7%) lower in the first six months
of 2014 as compared to the first six months of 2013.  The net interest
margin was 3.84% in the second quarter 2014, down from 3.89% in the
first quarter 2014.  For the first six months of 2014, the net interest
margin was 3.86% as compared to 4.16% for the first six months of 2013.

● The provision for loan losses was $446,000 in the second quarter
2014 as compared to a credit (reduction in expense) of ($311,000) in the
first quarter 2014 and a provision of $66,000 in the second quarter
2013.  For the first six months of 2014, the provision for loan losses
totaled $135,000 as compared to a provision of $249,000 for the first
six months of 2013.  The higher provision for loan losses in the second
quarter 2014 included an increase in the collectively determined portion
of the allowance for loan losses as a result of an increased level of
net charge-offs.   C&N recorded net charge-offs totaling $1,522,000 in
the second quarter 2014, including a charge-off of $1,486,000 related to
one commercial loan relationship for which a specific allowance had been
established in previous quarters.

● Noninterest revenue totaled $3,980,000 in the second quarter 2014,
up $229,000 from the first quarter 2014 but $211,000 lower than in the
second quarter 2013.  For the first six months of 2014, noninterest
revenue was $303,000 (3.8%) lower than in the first six months of 2013.
Gains from sales of residential mortgage loans totaled $416,000 in the
first six months of 2014, down from $1,056,000 in the first six months
of 2013, as volume fell mainly because of higher interest rates.  Total
Trust and brokerage revenue of $2,654,000 in the first six months of
2014 was $284,000 (12.0%) higher than the total in the first six months
of 2013.


● Realized gains from available-for-sale securities totaled $103,000
in the second quarter 2014 as compared to $31,000 in the first quarter
2014 and $100,000 in the second quarter 2013.  In the first six months
of 2014, realized gains from securities totaled $134,000.  In
comparison, in the first six months of 2013, C&N generated gains from
sales of securities totaling $1,259,000 and also incurred losses from
prepayment of borrowings of $1,023,000.

● Noninterest expenses, excluding losses from prepayment of
borrowings, totaled $8,347,000 in the second
quarter 2014, down from
$8,524,000 in the first quarter 2014 and $8,520,000 in the second
quarter 2013.    Pensions and other employee benefit costs were $166,000
lower in the second quarter 2014 than in the first quarter 2013, mainly
due to the timing of payroll taxes and other payroll-related expenses
that are typically highest in the first quarter of each year.  In the
first six months of 2014, total noninterest expenses, excluding losses
from prepayment of borrowings, were $202,000 (1.2%) lower than in the
first six months of 2013.  The reduction in noninterest expenses in the
first six months of 2014 included decreases in professional fees of
$326,000 and ATM and interchange processing expense of $155,000, while
pensions and other employee benefit expenses increased $183,000, mainly
due to higher health care costs, and occupancy expenses increased
$123,000 due to higher weather-related maintenance expenses.            


Other Information:
Changes in other unaudited financial information are as follows:

● Total assets amounted to $1,256,205,000 at June 30, 2014, up from
$1,235,139,000 at March 31, 2014 and $1,228,344,000 at June 30, 2013.

● Net loans outstanding (excluding mortgage loans held for sale) were
$614,347,000 at June 30, 2014, down from $617,475,000 at March 31, 2014
and down $33.4 million (5.2%) from $647,772,000 at June 30, 2013.

● The outstanding balance of residential mortgages originated by C&N
and sold to third parties, with servicing retained, totaled $150,725,000
at June 30, 2014, up from $147,391,000 at March 31, 2014 and
$126,489,000 at June 30, 2013.

● Total nonperforming assets as a percentage of assets was 1.44% at
June 30, 2014, the same as at March 31, 2014 and up from 0.80% at June
30, 2013.  The increase in this ratio has resulted mainly from
classification of two large commercial loans as nonaccrual.

● Deposits and repo sweep accounts totaled $983,876,000 at June 30,
2014, up from $966,563,000 at March 31, 2014 and $955,156,000 at June
30, 2013.

● Total shareholders’ equity was $189,173,000 at June 30, 2014, up
from $184,762,000 at March 31, 2014 and $179,361,000 at June 30, 2013.
Tangible common equity as a percentage of tangible assets was 14.24% at
June 30, 2014, up from 13.76% a year earlier.

● Assets under management by C&N’s Trust and Financial Management
Group amounted to $824,279,000 at June 30, 2014, an increase of 13.3%
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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