Attached files
| file | filename |
|---|---|
| 8-K - CITIZENS & NORTHERN CORP | v208317_8k.htm |
| EX-99.1 - CITIZENS & NORTHERN CORP | v208317_ex99-1.htm |
| EX-99.2 - CITIZENS & NORTHERN CORP | v208317_ex99-2.htm |
EXHIBIT
99.3 – Supplemental, Unaudited Financial Information
|
AVAILABLE-FOR-SALE
SECURITIES
|
December
31, 2010
|
September
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
|
$44,005
|
$44,247
|
$51,337
|
$52,032
|
$48,949
|
$48,993
|
|
Obligations
of states and political subdivisions
|
135,018
|
127,542
|
122,452
|
123,778
|
109,109
|
104,990
|
|
Mortgage-backed
securities
|
113,176
|
118,386
|
120,470
|
126,283
|
150,700
|
156,378
|
|
Collateralized
mortgage obligations:
|
||||||
|
Issued
by U.S. Government agencies
|
131,040
|
130,826
|
109,270
|
110,728
|
47,083
|
47,708
|
|
Private
label
|
0
|
0
|
0
|
0
|
15,465
|
15,494
|
|
Corporate
bonds
|
1,000
|
1,027
|
1,000
|
1,031
|
1,000
|
1,041
|
|
Trust
preferred securities issued by individual institutions
|
6,535
|
7,838
|
6,461
|
5,889
|
7,043
|
6,018
|
|
Collateralized
debt obligations:
|
||||||
|
Pooled
trust preferred securities - senior tranches
|
9,957
|
7,400
|
11,027
|
8,000
|
11,383
|
8,199
|
|
Pooled
trust preferred securities - mezzanine tranches
|
0
|
0
|
0
|
0
|
266
|
115
|
|
Other
collateralized debt obligations
|
681
|
681
|
690
|
690
|
690
|
690
|
|
Total
debt securities
|
441,412
|
437,946
|
422,707
|
428,431
|
391,688
|
389,626
|
|
Marketable
equity securities
|
4,589
|
6,009
|
4,027
|
4,961
|
5,367
|
6,662
|
|
Total
|
$446,001
|
$443,956
|
$426,734
|
$433,392
|
$397,055
|
$396,288
|
|
SUMMARY
OF LOANS BY TYPE
|
|||
|
(Excludes
Loans Held for Sale)
|
|||
|
(In
Thousands)
|
Dec.
31,
|
Sept.
30,
|
Dec.
31,
|
|
2010
|
2010
|
2009
|
|
|
Real
estate - residential mortgage
|
$410,589
|
$414,348
|
$419,773
|
|
Real
estate - commercial mortgage
|
167,094
|
162,245
|
163,483
|
|
Real
estate – construction
|
38,383
|
38,557
|
26,716
|
|
Consumer
|
14,996
|
15,932
|
19,202
|
|
Agricultural
|
3,472
|
3,754
|
3,848
|
|
Commercial
|
59,005
|
55,096
|
49,753
|
|
Other
|
392
|
259
|
638
|
|
Political
subdivisions
|
36,480
|
35,937
|
37,598
|
|
Total
|
730,411
|
726,128
|
721,011
|
|
Less:
allowance for loan losses
|
(9,107)
|
(8,602)
|
(8,265)
|
|
Loans,
net
|
$721,304
|
$717,526
|
$712,746
|
|
ANALYSIS
OF THE ALLOWANCE FOR LOAN LOSSES
|
||||
|
(In
Thousands)
|
||||
|
3
Months
|
3
Months
|
Year
|
Year
|
|
|
Ended
|
Ended
|
Ended
|
Ended
|
|
|
Dec.
31,
|
Sept.
30,
|
Dec.
31,
|
Dec.
31,
|
|
|
2010
|
2010
|
2010
|
2009
|
|
|
Balance,
beginning of period
|
$8,602
|
$8,461
|
$8,265
|
$7,857
|
|
Charge-offs:
|
||||
|
Real
estate loans
|
170
|
68
|
393
|
149
|
|
Installment
loans
|
53
|
44
|
188
|
293
|
|
Credit
cards and related plans
|
0
|
0
|
0
|
0
|
|
Commercial
and other loans
|
10
|
4
|
38
|
36
|
|
Total
charge-offs
|
233
|
116
|
619
|
478
|
|
Recoveries:
|
||||
|
Real
estate loans
|
2
|
32
|
55
|
8
|
|
Installment
loans
|
15
|
36
|
102
|
104
|
|
Credit
cards and related plans
|
0
|
0
|
0
|
0
|
|
Commercial
and other loans
|
2
|
0
|
113
|
94
|
|
Total
recoveries
|
19
|
68
|
270
|
206
|
|
Net
charge-offs
|
214
|
48
|
349
|
272
|
|
Provision
for loan losses
|
719
|
189
|
1,191
|
680
|
|
Balance,
end of period
|
$9,107
|
$8,602
|
$9,107
|
$8,265
|
|
(In
Thousands)
|
|||
|
Dec.
31,
|
Sept.
30,
|
Dec.
31,
|
|
|
2010
|
2010
|
2009
|
|
|
Total
loans past due 30-89 days and still
|
|||
|
Accruing
|
$7,125
|
$6,323
|
$9,445
|
|
Nonperforming
assets:
|
|||
|
Total
loans past due 90 days or more and still accruing
|
$727
|
$1,404
|
$31
|
|
Total
nonaccrual loans
|
10,809
|
8,786
|
9,092
|
|
Foreclosed
assets held for sale (real estate)
|
537
|
530
|
873
|
|
Total
nonperforming assets
|
$12,073
|
$10,720
|
$9,996
|
|
Total
nonperforming assets as a % of assets
|
0.92%
|
0.82%
|
0.76%
|
|
(Dollars
in Thousands)
|
||||
|
3
Months
|
3
Months
|
|||
|
Ended
|
Rate
of
|
Ended
|
Rate
of
|
|
|
12/31/2010
|
Return/
|
9/30/2010
|
Return/
|
|
|
Average
|
Cost
of
|
Average
|
Cost
of
|
|
|
Balance
|
Funds
%
|
Balance
|
Funds
%
|
|
|
EARNING
ASSETS
|
||||
|
Available-for-sale
securities, at amortized cost:
|
||||
|
Taxable
|
$312,889
|
3.46%
|
$313,385
|
3.42%
|
|
Tax-exempt
|
120,990
|
6.06%
|
114,139
|
6.30%
|
|
Total
available-for-sale securities
|
433,879
|
4.18%
|
427,524
|
4.19%
|
|
Held-to-maturity
securities,
|
||||
|
Taxable
|
0
|
0.00%
|
0
|
0.00%
|
|
Trading
securities
|
0
|
0.00%
|
0
|
0.00%
|
|
Interest-bearing
due from banks
|
40,139
|
0.22%
|
45,661
|
0.23%
|
|
Federal
funds sold
|
1
|
0.00%
|
36
|
0.00%
|
|
Loans:
|
||||
|
Taxable
|
693,013
|
6.36%
|
690,084
|
6.41%
|
|
Tax-exempt
|
35,273
|
6.51%
|
35,324
|
6.56%
|
|
Total
loans
|
728,286
|
6.37%
|
725,408
|
6.42%
|
|
Total
Earning Assets
|
1,202,305
|
5.38%
|
1,198,629
|
5.39%
|
|
Cash
|
17,493
|
17,788
|
||
|
Unrealized
gain/loss on securities
|
4,694
|
4,746
|
||
|
Allowance
for loan losses
|
(8,686)
|
(8,586)
|
||
|
Bank
premises and equipment
|
22,923
|
23,319
|
||
|
Intangible
Asset - Core Deposit Intangible
|
352
|
396
|
||
|
Intangible
Asset - Goodwill
|
11,942
|
11,942
|
||
|
Other
assets
|
62,350
|
72,735
|
||
|
Total
Assets
|
$1,313,373
|
$1,320,969
|
||
|
INTEREST-BEARING
LIABILITIES
|
||||
|
Interest-bearing
deposits:
|
||||
|
Interest
checking
|
$164,011
|
0.40%
|
$153,933
|
0.51%
|
|
Money
market
|
207,574
|
0.37%
|
204,470
|
0.38%
|
|
Savings
|
85,098
|
0.25%
|
79,484
|
0.24%
|
|
Certificates
of deposit
|
217,005
|
2.05%
|
222,117
|
2.16%
|
|
Individual
Retirement Accounts
|
162,908
|
3.01%
|
163,794
|
3.04%
|
|
Other
time deposits
|
755
|
0.53%
|
1,839
|
0.43%
|
|
Total
interest-bearing deposits
|
837,351
|
1.32%
|
825,637
|
1.40%
|
|
Borrowed
funds:
|
||||
|
Short-term
|
19,498
|
0.22%
|
23,328
|
0.26%
|
|
Long-term
|
150,635
|
4.01%
|
166,887
|
4.06%
|
|
Total
borrowed funds
|
170,133
|
3.58%
|
190,215
|
3.59%
|
|
Total
Interest-bearing Liabilities
|
1,007,484
|
1.70%
|
1,015,852
|
1.81%
|
|
Demand
deposits
|
156,932
|
150,299
|
||
|
Other
liabilities
|
7,495
|
8,209
|
||
|
Total
Liabilities
|
1,171,911
|
1,174,360
|
||
|
Stockholders'
equity, excluding other comprehensive income/loss
|
138,592
|
143,738
|
||
|
Other
comprehensive income/loss
|
2,870
|
2,871
|
||
|
Total
Stockholders' Equity
|
141,462
|
146,609
|
||
|
Total
Liabilities and Stockholders' Equity
|
$1,313,373
|
$1,320,969
|
||
|
Interest
Rate Spread
|
3.68%
|
3.58%
|
||
|
Net
Interest Income/Earning Assets
|
3.95%
|
3.85%
|
||
|
Total
Deposits (Interest-bearing and Demand)
|
$994,283
|
$975,936
|
||
(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)
|
||||
|
Year
|
Year
|
|||
|
Ended
|
Rate
of
|
Ended
|
Rate
of
|
|
|
12/31/2010
|
Return/
|
12/31/2009
|
Return/
|
|
|
Average
|
Cost
of
|
Average
|
Cost
of
|
|
|
Balance
|
Funds
%
|
Balance
|
Funds
%
|
|
|
EARNING
ASSETS
|
||||
|
Available-for-sale
securities, at amortized cost:
|
||||
|
Taxable
|
$314,462
|
3.61%
|
$342,332
|
4.82%
|
|
Tax-exempt
|
113,058
|
6.33%
|
97,491
|
6.71%
|
|
Total
available-for-sale securities
|
427,520
|
4.33%
|
439,823
|
5.24%
|
|
Held-to-maturity
securities,
|
||||
|
Taxable
|
38
|
5.27%
|
373
|
5.63%
|
|
Trading
securities
|
29
|
6.99%
|
1,005
|
6.37%
|
|
Interest-bearing
due from banks
|
54,655
|
0.23%
|
29,348
|
0.21%
|
|
Federal
funds sold
|
48
|
0.00%
|
8,983
|
0.17%
|
|
Loans:
|
||||
|
Taxable
|
687,520
|
6.43%
|
689,275
|
6.56%
|
|
Tax-exempt
|
35,798
|
6.55%
|
39,473
|
6.18%
|
|
Total
loans
|
723,318
|
6.44%
|
728,748
|
6.54%
|
|
Total
Earning Assets
|
1,205,608
|
5.41%
|
1,208,280
|
5.87%
|
|
Cash
|
17,505
|
17,042
|
||
|
Unrealized
gain/loss on securities
|
2,555
|
(24,334)
|
||
|
Allowance
for loan losses
|
(8,552)
|
(7,914)
|
||
|
Bank
premises and equipment
|
23,522
|
25,239
|
||
|
Intangible
Asset - Core Deposit Intangible
|
417
|
669
|
||
|
Intangible
Asset - Goodwill
|
11,942
|
11,953
|
||
|
Other
assets
|
73,148
|
65,151
|
||
|
Total
Assets
|
$1,326,145
|
$1,296,086
|
||
|
INTEREST-BEARING
LIABILITIES
|
||||
|
Interest-bearing
deposits:
|
||||
|
Interest
checking
|
$147,494
|
0.54%
|
$104,444
|
0.86%
|
|
Money
market
|
203,191
|
0.43%
|
200,982
|
1.00%
|
|
Savings
|
78,012
|
0.25%
|
69,002
|
0.39%
|
|
Certificates
of deposit
|
225,542
|
2.24%
|
226,913
|
2.94%
|
|
Individual
Retirement Accounts
|
162,754
|
3.06%
|
154,340
|
3.11%
|
|
Other
time deposits
|
1,242
|
0.48%
|
1,276
|
0.47%
|
|
Total
interest-bearing deposits
|
818,235
|
1.46%
|
756,957
|
1.94%
|
|
Borrowed
funds:
|
||||
|
Short-term
|
27,563
|
0.64%
|
38,731
|
1.40%
|
|
Long-term
|
175,229
|
4.09%
|
221,682
|
4.18%
|
|
Total
borrowed funds
|
202,792
|
3.62%
|
260,413
|
3.77%
|
|
Total
Interest-bearing Liabilities
|
1,021,027
|
1.88%
|
1,017,370
|
2.40%
|
|
Demand
deposits
|
147,380
|
129,746
|
||
|
Other
liabilities
|
7,605
|
7,183
|
||
|
Total
Liabilities
|
1,176,012
|
1,154,299
|
||
|
Stockholders'
equity, excluding other comprehensive income/loss
|
148,735
|
158,120
|
||
|
Other
comprehensive income/loss
|
1,398
|
(16,333)
|
||
|
Total
Stockholders' Equity
|
150,133
|
141,787
|
||
|
Total
Liabilities and Stockholders' Equity
|
$1,326,145
|
$1,296,086
|
||
|
Interest
Rate Spread
|
3.53%
|
3.47%
|
||
|
Net
Interest Income/Earning Assets
|
3.81%
|
3.84%
|
||
|
Total
Deposits (Interest-bearing and Demand)
|
$965,615
|
$886,703
|
||
(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
|
Year
Ended
|
|||
|
Dec.
31,
|
Sept.
30,
|
Dec.
31,
|
Dec.
31,
|
Dec.
31,
|
|
|
2010
|
2010
|
2009
|
2010
|
2009
|
|
|
Service
charges on deposit accounts
|
$1,130
|
$1,166
|
$1,277
|
$4,579
|
$4,791
|
|
Service
charges and fees
|
264
|
191
|
181
|
858
|
796
|
|
Trust
and financial management revenue
|
870
|
876
|
866
|
3,475
|
3,262
|
|
Insurance
commissions, fees and premiums
|
62
|
65
|
67
|
248
|
293
|
|
Increase
in cash surrender value of life insurance
|
114
|
121
|
117
|
466
|
501
|
|
Interchange
revenue from debit card transactions
|
452
|
427
|
363
|
1,678
|
1,338
|
|
Net
gains from sales of loans
|
268
|
275
|
26
|
761
|
106
|
|
Brokerage
revenue
|
147
|
102
|
107
|
465
|
464
|
|
Other
operating income
|
173
|
352
|
659
|
1,387
|
1,470
|
|
Total
other operating income, before realized gains (losses) on
available-for-sale securities, net
|
$3,480
|
$3,575
|
$3,663
|
$13,917
|
$13,021
|
|
COMPARISON
OF NON-INTEREST EXPENSE
|
|||||
|
(In
Thousands)
|
Three
Months Ended
|
Year
Ended
|
|||
|
Dec.
31,
|
Sept.
30,
|
Dec.
31,
|
Dec.
31,
|
Dec.
31,
|
|
|
2010
|
2010
|
2009
|
2010
|
2009
|
|
|
Salaries
and wages
|
$3,432
|
$3,354
|
$2,744
|
$13,063
|
$12,737
|
|
Pensions
and other employee benefits
|
938
|
980
|
719
|
3,840
|
3,956
|
|
Occupancy
expense, net
|
641
|
654
|
668
|
2,645
|
2,741
|
|
Furniture
and equipment expense
|
493
|
500
|
613
|
2,103
|
2,679
|
|
FDIC
Assessments
|
249
|
382
|
441
|
1,450
|
2,092
|
|
Pennsylvania
shares tax
|
306
|
305
|
318
|
1,222
|
1,272
|
|
Other
operating expense
|
1,661
|
1,920
|
2,179
|
7,246
|
8,534
|
|
Total
Other Expense
|
$7,720
|
$8,095
|
$7,682
|
$31,569
|
$34,011
|