Attached files
| file | filename |
|---|---|
| 8-K - CITIZENS & NORTHERN CORP | v199098_8k.htm |
| EX-99.2 - CITIZENS & NORTHERN CORP | v199098_ex99-2.htm |
| EX-99.1 - CITIZENS & NORTHERN CORP | v199098_ex99-1.htm |
EXHIBIT
99.3 – Supplemental, Unaudited Financial Information
|
AVAILABLE-FOR-SALE
SECURITIES
|
September
30, 2010
|
June
30, 2010
|
December
31, 2009
|
|||
|
(In
Thousands)
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
|
|
Obligations
of other U.S. Government agencies
|
$51,337
|
$52,032
|
$56,137
|
$56,526
|
$48,949
|
$48,993
|
|
Obligations
of states and political subdivisions
|
122,452
|
123,778
|
112,319
|
109,812
|
109,109
|
104,990
|
|
Mortgage-backed
securities
|
120,470
|
126,283
|
139,306
|
145,782
|
150,700
|
156,378
|
|
Collateralized
mortgage obligations:
|
||||||
|
Issued
by U.S. Government agencies
|
109,270
|
110,728
|
92,460
|
93,327
|
47,083
|
47,708
|
|
Private
label
|
0
|
0
|
0
|
0
|
15,465
|
15,494
|
|
Corporate
bonds
|
1,000
|
1,031
|
1,000
|
1,036
|
1,000
|
1,041
|
|
Trust
preferred securities issued by individual institutions
|
6,461
|
5,889
|
6,468
|
5,783
|
7,043
|
6,018
|
|
Collateralized
debt obligations:
|
||||||
|
Pooled
trust preferred securities - senior tranches
|
11,027
|
8,000
|
11,047
|
8,000
|
11,383
|
8,199
|
|
Pooled
trust preferred securities - mezzanine tranches
|
0
|
0
|
0
|
0
|
266
|
115
|
|
Other
collateralized debt obligations
|
690
|
690
|
690
|
690
|
690
|
690
|
|
Total
debt securities
|
422,707
|
428,431
|
419,427
|
420,956
|
391,688
|
389,626
|
|
Marketable
equity securities
|
4,027
|
4,961
|
4,239
|
5,290
|
5,367
|
6,662
|
|
Total
|
$426,734
|
$433,392
|
$423,666
|
$426,246
|
$397,055
|
$396,288
|
|
SUMMARY
OF LOANS BY TYPE
|
|||
|
(In
Thousands)
|
|||
|
Sept.
30,
|
June
30,
|
Dec.
31,
|
|
|
2010
|
2010
|
2009
|
|
|
Real
estate - residential mortgage
|
$414,909
|
$417,428
|
$420,365
|
|
Real
estate - commercial mortgage
|
162,245
|
159,297
|
163,483
|
|
Real
estate - construction
|
38,557
|
32,733
|
26,716
|
|
Consumer
|
15,932
|
16,738
|
19,202
|
|
Agricultural
|
3,754
|
3,986
|
3,848
|
|
Commercial
|
55,096
|
57,100
|
49,753
|
|
Other
|
259
|
319
|
638
|
|
Political
subdivisions
|
35,937
|
36,223
|
37,598
|
|
Total
|
726,689
|
723,824
|
721,603
|
|
Less:
allowance for loan losses
|
(8,602)
|
(8,461)
|
(8,265)
|
|
Loans,
net
|
$718,087
|
$715,363
|
$713,338
|
|
ANALYSIS
OF THE ALLOWANCE FOR LOAN LOSSES
|
|||||
|
(In
Thousands)
|
|||||
|
3
Months
|
3
Months
|
3
Months
|
9
Months
|
9
Months
|
|
|
Ended
|
Ended
|
Ended
|
Ended
|
Ended
|
|
|
Sept.
30,
|
June
30,
|
Sept.
30,
|
Sept.
30,
|
Sept.
30,
|
|
|
2010
|
2010
|
2009
|
2010
|
2009
|
|
|
Balance,
beginning of period
|
$8,461
|
$8,417
|
$7,681
|
$8,265
|
$7,857
|
|
Charge-offs:
|
|||||
|
Real
estate loans
|
68
|
68
|
88
|
223
|
94
|
|
Installment
loans
|
44
|
21
|
60
|
135
|
236
|
|
Credit
cards and related plans
|
0
|
0
|
0
|
0
|
0
|
|
Commercial
and other loans
|
4
|
0
|
1
|
28
|
12
|
|
Total
charge-offs
|
116
|
89
|
149
|
386
|
342
|
|
Recoveries:
|
|||||
|
Real
estate loans
|
32
|
20
|
6
|
53
|
6
|
|
Installment
loans
|
36
|
21
|
15
|
87
|
90
|
|
Credit
cards and related plans
|
0
|
0
|
0
|
0
|
0
|
|
Commercial
and other loans
|
0
|
16
|
1
|
111
|
23
|
|
Total
recoveries
|
68
|
57
|
22
|
251
|
119
|
|
Net
charge-offs
|
48
|
32
|
127
|
135
|
223
|
|
Provision
for loan losses
|
189
|
76
|
634
|
472
|
554
|
|
Balance,
end of period
|
$8,602
|
$8,461
|
$8,188
|
$8,602
|
$8,188
|
|
(In
Thousands)
|
|||
|
Sept.
30,
|
June
30,
|
Dec.
31,
|
|
|
2010
|
2010
|
2009
|
|
|
Total
loans past due 30-89 days and still
|
|||
|
accruing
|
$6,323
|
$8,992
|
$9,445
|
|
Nonperforming
assets:
|
|||
|
Total
loans past due 90 days or more and
|
|||
|
still
accruing
|
$1,404
|
$1,937
|
$31
|
|
Total
nonaccrual loans
|
8,786
|
8,071
|
9,092
|
|
Foreclosed
assets held for sale (real estate)
|
530
|
863
|
873
|
|
Total
nonperforming assets
|
$10,720
|
$10,871
|
$9,996
|
|
Total
nonperforming assets as a % of assets
|
0.82%
|
0.81%
|
0.76%
|
|
Analysis
of Average Daily Balances and Rates
|
||||||
|
(Dollars
in Thousands)
|
||||||
|
3
Months
|
3
Months
|
3
Months
|
||||
|
Ended
|
Rate
of
|
Ended
|
Rate
of
|
Ended
|
Rate
of
|
|
|
9/30/2010
|
Return/
|
6/30/2010
|
Return/
|
9/30/2009
|
Return/
|
|
|
Average
|
Cost
of
|
Average
|
Cost
of
|
Average
|
Cost
of
|
|
|
Balance
|
Funds
%
|
Balance
|
Funds
%
|
Balance
|
Funds
%
|
|
|
EARNING
ASSETS
|
||||||
|
Available-for-sale
securities,
|
||||||
|
at
amortized cost:
|
||||||
|
Taxable
|
$313,385
|
3.42%
|
$324,555
|
3.41%
|
$335,134
|
4.55%
|
|
Tax-exempt
|
114,139
|
6.30%
|
109,090
|
6.45%
|
103,421
|
6.70%
|
|
Total
available-for-sale securities
|
427,524
|
4.19%
|
433,645
|
4.17%
|
438,555
|
5.06%
|
|
Held-to-maturity
securities,
|
||||||
|
Taxable
|
0
|
0.00%
|
0
|
0.00%
|
384
|
5.16%
|
|
Trading
securities
|
0
|
0.00%
|
0
|
0.00%
|
231
|
3.43%
|
|
Interest-bearing
due from banks
|
45,661
|
0.23%
|
66,326
|
0.23%
|
40,616
|
0.23%
|
|
Federal
funds sold
|
36
|
0.00%
|
96
|
0.00%
|
64
|
0.00%
|
|
Loans:
|
||||||
|
Taxable
|
690,084
|
6.41%
|
682,956
|
6.47%
|
684,723
|
6.56%
|
|
Tax-exempt
|
35,324
|
6.56%
|
36,248
|
6.55%
|
41,580
|
6.11%
|
|
Total
loans
|
725,408
|
6.42%
|
719,204
|
6.47%
|
726,304
|
6.53%
|
|
Total
Earning Assets
|
1,198,629
|
5.39%
|
1,219,271
|
5.31%
|
1,206,154
|
5.78%
|
|
Cash
|
17,788
|
17,807
|
17,232
|
|||
|
Unrealized
gain/loss on securities
|
4,746
|
906
|
(24,407)
|
|||
|
Allowance
for loan losses
|
(8,586)
|
(8,523)
|
(7,693)
|
|||
|
Bank
premises and equipment
|
23,319
|
23,699
|
25,102
|
|||
|
Intangible
Asset - Core Deposit Intangible
|
396
|
438
|
628
|
|||
|
Intangible
Asset - Goodwill
|
11,942
|
11,942
|
11,941
|
|||
|
Other
assets
|
72,735
|
78,503
|
66,507
|
|||
|
Total
Assets
|
$1,320,969
|
$1,344,043
|
$1,295,464
|
|||
|
INTEREST-BEARING
LIABILITIES
|
||||||
|
Interest-bearing
deposits:
|
||||||
|
Interest
checking
|
$153,933
|
0.51%
|
$144,439
|
0.63%
|
$108,096
|
0.86%
|
|
Money
market
|
204,470
|
0.38%
|
203,567
|
0.46%
|
203,126
|
0.88%
|
|
Savings
|
79,484
|
0.24%
|
75,720
|
0.25%
|
69,292
|
0.34%
|
|
Certificates
of deposit
|
222,117
|
2.16%
|
226,352
|
2.30%
|
225,294
|
2.83%
|
|
Individual
Retirement Accounts
|
163,794
|
3.04%
|
163,156
|
3.08%
|
156,421
|
3.11%
|
|
Other
time deposits
|
1,839
|
0.43%
|
1,380
|
0.58%
|
1,892
|
0.42%
|
|
Total
interest-bearing deposits
|
825,637
|
1.40%
|
814,614
|
1.51%
|
764,120
|
1.86%
|
|
Borrowed
funds:
|
||||||
|
Short-term
|
23,328
|
0.26%
|
30,478
|
0.67%
|
34,383
|
1.40%
|
|
Long-term
|
166,887
|
4.06%
|
187,844
|
4.11%
|
220,093
|
4.18%
|
|
Total
borrowed funds
|
190,215
|
3.59%
|
218,322
|
3.63%
|
254,476
|
3.80%
|
|
Total
Interest-bearing Liabilities
|
1,015,852
|
1.81%
|
1,032,936
|
1.96%
|
1,018,596
|
2.34%
|
|
Demand
deposits
|
150,299
|
145,597
|
131,307
|
|||
|
Other
liabilities
|
8,209
|
7,244
|
6,516
|
|||
|
Total
Liabilities
|
1,174,360
|
1,185,777
|
1,156,419
|
|||
|
Stockholders'
equity, excluding
|
||||||
|
other
comprehensive income/loss
|
143,738
|
157,946
|
155,324
|
|||
|
Other
comprehensive income/loss
|
2,871
|
320
|
(16,279)
|
|||
|
Total
Stockholders' Equity
|
146,609
|
158,266
|
139,045
|
|||
|
Total
Liabilities and Stockholders' Equity
|
$1,320,969
|
$1,344,043
|
$1,295,464
|
|||
|
Interest
Rate Spread
|
3.58%
|
3.35%
|
3.44%
|
|||
|
Net
Interest Income/Earning Assets
|
3.85%
|
3.66%
|
3.80%
|
|||
|
Total
Deposits (Interest-bearing
|
||||||
|
and
Demand)
|
$975,936
|
$960,211
|
$895,427
|
|||
|
(1)
Rates of return on tax-exempt securities and loans are presented on a
fully taxable-equivalent basis.
|
||||||
|
(2)
Nonaccrual loans have been included with loans for the purpose of
analyzing net interest
earnings.
|
||||||
|
Analysis
of Average Daily Balances and Rates
|
||||
|
(Dollars
in Thousands)
|
||||
|
9
Months
|
9
Months
|
|||
|
Ended
|
Rate
of
|
Ended
|
Rate
of
|
|
|
9/30/2010
|
Return/
|
9/30/2009
|
Return/
|
|
|
Average
|
Cost
of
|
Average
|
Cost
of
|
|
|
Balance
|
Funds
%
|
Balance
|
Funds
%
|
|
|
EARNING
ASSETS
|
||||
|
Available-for-sale
securities,
|
||||
|
at
amortized cost:
|
||||
|
Taxable
|
$314,992
|
3.66%
|
$361,894
|
4.84%
|
|
Tax-exempt
|
110,385
|
6.43%
|
93,710
|
6.82%
|
|
Total
available-for-sale securities
|
425,377
|
4.38%
|
455,604
|
5.25%
|
|
Held-to-maturity
securities,
|
||||
|
Taxable
|
51
|
5.27%
|
398
|
5.71%
|
|
Trading
securities
|
38
|
6.99%
|
1,022
|
6.28%
|
|
Interest-bearing
due from banks
|
59,547
|
0.23%
|
19,026
|
0.20%
|
|
Federal
funds sold
|
64
|
0.00%
|
11,975
|
0.17%
|
|
Loans:
|
||||
|
Taxable
|
685,669
|
6.46%
|
690,834
|
6.59%
|
|
Tax-exempt
|
35,975
|
6.56%
|
39,904
|
6.11%
|
|
Total
loans
|
721,644
|
6.46%
|
730,738
|
6.56%
|
|
Total
Earning Assets
|
1,206,721
|
5.42%
|
1,218,763
|
5.91%
|
|
Cash
|
17,509
|
16,921
|
||
|
Unrealized
gain/loss on securities
|
1,834
|
(32,092)
|
||
|
Allowance
for loan losses
|
(8,507)
|
(7,789)
|
||
|
Bank
premises and equipment
|
23,724
|
25,442
|
||
|
Intangible
Asset - Core Deposit Intangible
|
439
|
711
|
||
|
Intangible
Asset - Goodwill
|
11,942
|
11,957
|
||
|
Other
assets
|
76,787
|
62,261
|
||
|
Total
Assets
|
$1,330,449
|
$1,296,174
|
||
|
INTEREST-BEARING
LIABILITIES
|
||||
|
Interest-bearing
deposits:
|
||||
|
Interest
checking
|
$141,928
|
0.60%
|
$100,809
|
0.87%
|
|
Money
market
|
201,714
|
0.45%
|
200,960
|
1.11%
|
|
Savings
|
75,624
|
0.25%
|
69,111
|
0.44%
|
|
Certificates
of deposit
|
228,419
|
2.30%
|
226,781
|
3.04%
|
|
Individual
Retirement Accounts
|
162,702
|
3.07%
|
152,415
|
3.11%
|
|
Other
time deposits
|
1,406
|
0.48%
|
1,443
|
0.46%
|
|
Total
interest-bearing deposits
|
811,793
|
1.50%
|
751,519
|
2.00%
|
|
Borrowed
funds:
|
||||
|
Short-term
|
30,281
|
0.73%
|
39,065
|
1.48%
|
|
Long-term
|
183,517
|
4.11%
|
226,574
|
4.19%
|
|
Total
borrowed funds
|
213,798
|
3.63%
|
265,639
|
3.79%
|
|
Total
Interest-bearing Liabilities
|
1,025,591
|
1.95%
|
1,017,158
|
2.47%
|
|
Demand
deposits
|
144,161
|
127,805
|
||
|
Other
liabilities
|
7,642
|
7,413
|
||
|
Total
Liabilities
|
1,177,394
|
1,152,376
|
||
|
Stockholders'
equity, excluding
|
||||
|
other
comprehensive income/loss
|
152,153
|
165,222
|
||
|
Other
comprehensive income/loss
|
902
|
(21,424)
|
||
|
Total
Stockholders' Equity
|
153,055
|
143,798
|
||
|
Total
Liabilities and Stockholders' Equity
|
$1,330,449
|
$1,296,174
|
||
|
Interest
Rate Spread
|
3.47%
|
3.44%
|
||
|
Net
Interest Income/Earning Assets
|
3.76%
|
3.85%
|
||
|
Total
Deposits (Interest-bearing
|
||||
|
and
Demand)
|
$955,954
|
$879,324
|
||
|
(1)
Rates of return on tax-exempt securities and loans are presented on a
fully taxable-equivalent basis.
|
||||
|
(2)
Nonaccrual loans have been included with loans for the purpose of
analyzing net interest
earnings.
|
||||
|
COMPARISON
OF NON-INTEREST INCOME
|
|||||
|
(In
Thousands)
|
Three
Months Ended
|
Nine
Months Ended
|
|||
|
Sept.
30,
|
June
30,
|
Sept.
30,
|
Sept.
30,
|
Sept.
30,
|
|
|
2010
|
2010
|
2009
|
2010
|
2009
|
|
|
Service
charges on deposit accounts
|
$1,166
|
$1,190
|
$1,317
|
$3,449
|
$3,514
|
|
Service
charges and fees
|
191
|
210
|
198
|
594
|
615
|
|
Trust
and financial management revenue
|
876
|
830
|
757
|
2,605
|
2,396
|
|
Insurance
commissions, fees and premiums
|
65
|
61
|
69
|
186
|
226
|
|
Increase
in cash surrender value of life insurance
|
121
|
119
|
107
|
352
|
384
|
|
Other
operating income
|
1,030
|
776
|
834
|
2,894
|
1,967
|
|
Total
other operating income, before realized
|
|||||
|
gains
(losses) on available-for-sale securities, net
|
$3,449
|
$3,186
|
$3,282
|
$10,080
|
$9,102
|
|
COMPARISON
OF NON-INTEREST EXPENSE
|
|||||
|
(In
Thousands)
|
Three
Months Ended
|
Nine
Months Ended
|
|||
|
Sept.
30,
|
June
30,
|
Sept.
30,
|
Sept.
30,
|
Sept.
30,
|
|
|
2010
|
2010
|
2009
|
2010
|
2009
|
|
|
Salaries
and wages
|
$3,354
|
$3,199
|
$3,334
|
$9,631
|
$9,993
|
|
Pensions
and other employee benefits
|
980
|
983
|
918
|
2,902
|
3,237
|
|
Occupancy
expense, net
|
654
|
651
|
652
|
2,004
|
2,073
|
|
Furniture
and equipment expense
|
500
|
542
|
690
|
1,610
|
2,056
|
|
FDIC
Assessments
|
382
|
415
|
393
|
1,201
|
1,651
|
|
Pennsylvania
shares tax
|
305
|
306
|
318
|
916
|
954
|
|
Other
operating expense
|
1,794
|
1,533
|
1,972
|
5,228
|
6,099
|
|
Total
Other Expense
|
$7,969
|
$7,629
|
$8,277
|
$23,492
|
$26,063
|