Attached files
| file | filename |
|---|---|
| 8-K - CITIZENS & NORTHERN CORP | v228786_8k.htm |
| EX-99.2 - CITIZENS & NORTHERN CORP | v228786_ex99-2.htm |
| EX-99.1 - CITIZENS & NORTHERN CORP | v228786_ex99-1.htm |
EXHIBIT 99.3 – Supplemental, Unaudited Financial Information
|
AVAILABLE-FOR-SALE SECURITIES
|
June 30, 2011
|
March 31, 2011
|
December 31, 2010
|
|||
|
(In Thousands)
|
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
|
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
|
|
Obligations of U.S. Government agencies
|
$33,530
|
$34,076
|
$36,963
|
$37,129
|
$44,005
|
$44,247
|
|
Obligations of states and political subdivisions:
|
||||||
|
Tax-exempt
|
127,670
|
125,326
|
127,107
|
121,789
|
127,210
|
119,874
|
|
Taxable
|
12,652
|
12,743
|
11,676
|
11,507
|
7,808
|
7,668
|
|
Mortgage-backed securities
|
111,140
|
116,302
|
99,220
|
103,627
|
113,176
|
118,386
|
|
Collateralized mortgage obligations,
|
||||||
|
Issued by U.S. Government agencies
|
149,946
|
152,156
|
152,718
|
153,558
|
131,040
|
130,826
|
|
Corporate bonds
|
1,000
|
1,010
|
1,000
|
1,019
|
1,000
|
1,027
|
|
Trust preferred securities issued by individual institutions
|
6,793
|
8,123
|
6,640
|
8,040
|
6,535
|
7,838
|
|
Collateralized debt obligations:
|
||||||
|
Pooled trust preferred securities - senior tranches
|
7,913
|
7,207
|
9,937
|
9,038
|
9,957
|
7,400
|
|
Other collateralized debt obligations
|
660
|
660
|
681
|
681
|
681
|
681
|
|
Total debt securities
|
451,304
|
457,603
|
445,942
|
446,388
|
441,412
|
437,947
|
|
Marketable equity securities
|
4,883
|
6,611
|
4,789
|
6,586
|
4,589
|
6,009
|
|
Total
|
$456,187
|
$464,214
|
$450,731
|
$452,974
|
$446,001
|
$443,956
|
|
Summary of Loans by Type
|
||||
|
(Excludes Loans Held for Sale)
|
||||
|
(In Thousands)
|
June 30,
|
March 31,
|
December 31,
|
|
|
2011
|
2011
|
2010
|
||
|
Consumer mortgage:
|
||||
|
Residential mortgage loans - first liens
|
$334,300
|
$335,362
|
$333,012
|
|
|
Residential mortgage loans - junior liens
|
30,214
|
30,403
|
31,590
|
|
|
Home equity lines of credit
|
28,544
|
26,887
|
26,853
|
|
|
1-4 Family residential construction
|
8,574
|
7,666
|
14,379
|
|
|
Total consumer mortgage
|
401,632
|
400,318
|
405,834
|
|
|
Commercial:
|
||||
|
Commercial loans secured by real estate
|
157,282
|
164,201
|
167,094
|
|
|
Commercial and industrial
|
59,791
|
57,494
|
59,005
|
|
|
Political subdivisions
|
34,675
|
36,226
|
36,480
|
|
|
Commercial construction
|
24,726
|
23,340
|
24,004
|
|
|
Loans secured by farmland
|
10,927
|
11,715
|
11,353
|
|
|
Multi-family (5 or more) residential
|
7,514
|
7,600
|
7,781
|
|
|
Agricultural loans
|
3,182
|
3,199
|
3,472
|
|
|
Other commercial loans
|
576
|
862
|
392
|
|
|
Total commercial
|
298,673
|
304,637
|
309,581
|
|
|
Consumer
|
13,631
|
14,004
|
14,996
|
|
|
Total
|
713,936
|
718,959
|
730,411
|
|
|
Less: allowance for loan losses
|
(8,269)
|
(8,846)
|
(9,107)
|
|
|
Loans, net
|
$705,667
|
$710,113
|
$721,304
|
|
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
|
||||
|
(In Thousands)
|
||||
|
3 Months
|
3 Months
|
6 Months
|
6 Months
|
|
|
Ended
|
Ended
|
Ended
|
Ended
|
|
|
June 30,
|
March 31,
|
June 30,
|
June 30,
|
|
|
2011
|
2011
|
2011
|
2010
|
|
|
Balance, beginning of period
|
$8,846
|
$9,107
|
$9,107
|
$8,265
|
|
Charge-offs
|
(800)
|
(97)
|
(897)
|
(270)
|
|
Recoveries
|
192
|
28
|
220
|
183
|
|
Net charge-offs
|
(608)
|
(69)
|
(677)
|
(87)
|
|
Provision (credit) for loan losses
|
31
|
(192)
|
(161)
|
283
|
|
Balance, end of period
|
$8,269
|
$8,846
|
$8,269
|
$8,461
|
|
(In Thousands)
|
||||
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
June 30,
|
|
|
2011
|
2011
|
2010
|
2010
|
|
|
Total loans past due 30-89 days and still
|
||||
|
Accruing
|
$6,611
|
$5,291
|
$7,125
|
$8,992
|
|
Nonperforming assets:
|
||||
|
Total loans past due 90 days or more and
|
||||
|
still accruing
|
$561
|
$453
|
$727
|
$1,937
|
|
Total nonaccrual loans
|
7,586
|
10,371
|
10,809
|
8,071
|
|
Foreclosed assets held for sale (real estate)
|
1,665
|
707
|
537
|
863
|
|
Total nonperforming assets
|
$9,812
|
$11,531
|
$12,073
|
$10,871
|
|
Total nonperforming assets as a % of assets
|
0.75%
|
0.88%
|
0.92%
|
0.81%
|
|
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
|
|
|
6/30/2011
|
Return/
|
3/31/2011
|
Return/
|
6/30/2010
|
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
|
$335,289
|
3.48%
|
$327,104
|
3.42%
|
$324,555
|
3.41%
|
|
Tax-exempt
|
128,049
|
6.02%
|
126,973
|
6.08%
|
109,090
|
6.45%
|
|
Total available-for-sale securities
|
463,338
|
4.18%
|
454,077
|
4.16%
|
433,645
|
4.17%
|
|
Held-to-maturity securities,
|
||||||
|
Taxable
|
0
|
0.00%
|
0
|
0.00%
|
0
|
0.00%
|
|
Trading securities
|
0
|
0.00%
|
0
|
0.00%
|
0
|
0.00%
|
|
Interest-bearing due from banks
|
29,385
|
0.22%
|
31,750
|
0.20%
|
66,326
|
0.23%
|
|
Federal funds sold
|
0
|
0.00%
|
0
|
0.00%
|
96
|
0.00%
|
|
Loans:
|
||||||
|
Taxable
|
681,675
|
6.39%
|
688,975
|
6.40%
|
682,956
|
6.47%
|
|
Tax-exempt
|
34,806
|
6.38%
|
35,073
|
6.44%
|
36,248
|
6.55%
|
|
Total loans
|
716,481
|
6.39%
|
724,048
|
6.40%
|
719,204
|
6.47%
|
|
Total Earning Assets
|
1,209,204
|
5.39%
|
1,209,875
|
5.40%
|
1,219,271
|
5.31%
|
|
Cash
|
17,631
|
16,985
|
17,807
|
|||
|
Unrealized gain/loss on securities
|
5,805
|
(588)
|
906
|
|||
|
Allowance for loan losses
|
(8,938)
|
(9,201)
|
(8,523)
|
|||
|
Bank premises and equipment
|
22,114
|
22,474
|
23,699
|
|||
|
Intangible Asset - Core Deposit Intangible
|
287
|
315
|
438
|
|||
|
Intangible Asset - Goodwill
|
11,942
|
11,942
|
11,942
|
|||
|
Other assets
|
56,349
|
60,758
|
78,503
|
|||
|
Total Assets
|
$1,314,394
|
$1,312,560
|
$1,344,043
|
|||
|
INTEREST-BEARING LIABILITIES
|
||||||
|
Interest-bearing deposits:
|
||||||
|
Interest checking
|
$166,795
|
0.28%
|
$163,479
|
0.32%
|
$144,439
|
0.63%
|
|
Money market
|
207,266
|
0.27%
|
203,439
|
0.30%
|
203,567
|
0.46%
|
|
Savings
|
95,821
|
0.20%
|
92,625
|
0.25%
|
75,720
|
0.25%
|
|
Certificates of deposit
|
205,346
|
1.96%
|
212,133
|
1.99%
|
226,352
|
2.30%
|
|
Individual Retirement Accounts
|
156,611
|
2.46%
|
161,174
|
2.99%
|
163,156
|
3.08%
|
|
Other time deposits
|
1,350
|
0.30%
|
956
|
0.42%
|
1,380
|
0.58%
|
|
Total interest-bearing deposits
|
833,189
|
1.09%
|
833,806
|
1.25%
|
814,614
|
1.51%
|
|
Borrowed funds:
|
||||||
|
Short-term
|
19,407
|
0.17%
|
16,865
|
0.14%
|
30,478
|
0.67%
|
|
Long-term
|
135,344
|
4.01%
|
145,802
|
4.01%
|
187,844
|
4.11%
|
|
Total borrowed funds
|
154,751
|
3.53%
|
162,667
|
3.61%
|
218,322
|
3.63%
|
|
Total Interest-bearing Liabilities
|
987,940
|
1.47%
|
996,473
|
1.63%
|
1,032,936
|
1.96%
|
|
Demand deposits
|
169,677
|
168,211
|
145,597
|
|||
|
Other liabilities
|
6,998
|
6,461
|
7,244
|
|||
|
Total Liabilities
|
1,164,615
|
1,171,145
|
1,185,777
|
|||
|
Stockholders' equity, excluding
|
||||||
|
other comprehensive income/loss
|
146,267
|
142,054
|
157,946
|
|||
|
Other comprehensive income/loss
|
3,512
|
(639)
|
320
|
|||
|
Total Stockholders' Equity
|
149,779
|
141,415
|
158,266
|
|||
|
Total Liabilities and Stockholders' Equity
|
$1,314,394
|
$1,312,560
|
$1,344,043
|
|||
|
Interest Rate Spread
|
3.92%
|
3.77%
|
3.35%
|
|||
|
Net Interest Income/Earning Assets
|
4.19%
|
4.05%
|
3.66%
|
|||
|
Total Deposits (Interest-bearing
|
||||||
|
and Demand)
|
$1,002,866
|
$1,002,017
|
$960,211
|
|||
|
(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)
|
|||||
|
6 Months
|
6 Months
|
||||
|
Ended
|
Rate of
|
Ended
|
Rate of
|
||
|
6/30/2011
|
Return/
|
6/30/2010
|
Return/
|
||
|
Average
|
Cost of
|
Average
|
Cost of
|
||
|
Balance
|
Funds %
|
Balance
|
Funds %
|
||
|
EARNING ASSETS
|
|||||
|
Available-for-sale securities,
|
|||||
|
at amortized cost:
|
|||||
|
Taxable
|
$331,219
|
3.45%
|
$315,809
|
3.78%
|
|
|
Tax-exempt
|
127,514
|
6.05%
|
108,477
|
6.50%
|
|
|
Total available-for-sale securities
|
458,733
|
4.17%
|
424,286
|
4.48%
|
|
|
Held-to-maturity securities,
|
|||||
|
Taxable
|
0
|
0.00%
|
76
|
5.27%
|
|
|
Trading securities
|
0
|
0.00%
|
58
|
6.99%
|
|
|
Interest-bearing due from banks
|
30,561
|
0.21%
|
66,605
|
0.23%
|
|
|
Federal funds sold
|
0
|
0.00%
|
78
|
0.00%
|
|
|
Loans:
|
|||||
|
Taxable
|
685,305
|
6.39%
|
683,425
|
6.48%
|
|
|
Tax-exempt
|
34,939
|
6.41%
|
36,306
|
6.55%
|
|
|
Total loans
|
720,244
|
6.39%
|
719,731
|
6.48%
|
|
|
Total Earning Assets
|
1,209,538
|
5.39%
|
1,210,834
|
5.44%
|
|
|
Cash
|
17,310
|
17,367
|
|||
|
Unrealized gain/loss on securities
|
2,626
|
354
|
|||
|
Allowance for loan losses
|
(9,069)
|
(8,467)
|
|||
|
Bank premises and equipment
|
22,293
|
23,930
|
|||
|
Intangible Asset - Core Deposit Intangible
|
301
|
461
|
|||
|
Intangible Asset - Goodwill
|
11,942
|
11,942
|
|||
|
Other assets
|
58,541
|
78,846
|
|||
|
Total Assets
|
$1,313,482
|
$1,335,267
|
|||
|
INTEREST-BEARING LIABILITIES
|
|||||
|
Interest-bearing deposits:
|
|||||
|
Interest checking
|
$165,146
|
0.30%
|
$135,826
|
0.64%
|
|
|
Money market
|
205,363
|
0.29%
|
200,313
|
0.48%
|
|
|
Savings
|
94,232
|
0.22%
|
73,662
|
0.25%
|
|
|
Certificates of deposit
|
208,721
|
1.97%
|
231,622
|
2.37%
|
|
|
Individual Retirement Accounts
|
158,880
|
2.73%
|
162,147
|
3.09%
|
|
|
Other time deposits
|
1,154
|
0.35%
|
1,186
|
0.51%
|
|
|
Total interest-bearing deposits
|
833,496
|
1.17%
|
804,756
|
1.56%
|
|
|
Borrowed funds:
|
|||||
|
Short-term
|
18,143
|
0.16%
|
33,815
|
0.90%
|
|
|
Long-term
|
140,544
|
4.01%
|
191,970
|
4.13%
|
|
|
Total borrowed funds
|
158,687
|
3.57%
|
225,785
|
3.64%
|
|
|
Total Interest-bearing Liabilities
|
992,183
|
1.55%
|
1,030,541
|
2.01%
|
|
|
Demand deposits
|
168,948
|
141,041
|
|||
|
Other liabilities
|
6,731
|
7,354
|
|||
|
Total Liabilities
|
1,167,862
|
1,178,936
|
|||
|
Stockholders' equity, excluding
|
|||||
|
other comprehensive income/loss
|
144,172
|
156,430
|
|||
|
Other comprehensive income/loss
|
1,448
|
(99)
|
|||
|
Total Stockholders' Equity
|
145,620
|
156,331
|
|||
|
Total Liabilities and Stockholders' Equity
|
$1,313,482
|
$1,335,267
|
|||
|
Interest Rate Spread
|
3.84%
|
3.43%
|
|||
|
Net Interest Income/Earning Assets
|
4.12%
|
3.72%
|
|||
|
Total Deposits (Interest-bearing
|
|||||
|
and Demand)
|
$1,002,444
|
$945,797
|
|||
|
(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.
|
|||||
|
(In Thousands)
|
Three Months Ended
|
Six Months Ended
|
|||
|
June 30,
|
Mar. 31,
|
June 30,
|
June 30,
|
June 30,
|
|
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
|
Service charges on deposit accounts
|
$1,225
|
$1,131
|
$1,190
|
$2,356
|
$2,283
|
|
Service charges and fees
|
207
|
218
|
210
|
425
|
403
|
|
Trust and financial management revenue
|
946
|
877
|
830
|
1,823
|
1,729
|
|
Brokerage revenue
|
229
|
123
|
107
|
352
|
216
|
|
Insurance commissions, fees and premiums
|
58
|
68
|
61
|
126
|
121
|
|
Increase in cash surrender value of life insurance
|
132
|
122
|
119
|
254
|
231
|
|
Interchange revenue from debit card transactions
|
485
|
452
|
424
|
937
|
799
|
|
Net gains from sales of loans
|
155
|
259
|
137
|
414
|
203
|
|
Net (loss) gain from other real estate
|
(24)
|
(19)
|
2
|
(43)
|
(36)
|
|
Net gain from sale of premises and equipment
|
0
|
0
|
1
|
0
|
449
|
|
Impairment loss on limited partnership investment
|
0
|
(948)
|
0
|
(948)
|
0
|
|
Other operating income
|
260
|
272
|
179
|
532
|
410
|
|
Total other operating income, before realized
|
|||||
|
gains on available-for-sale securities, net
|
$3,673
|
$2,555
|
$3,260
|
$6,228
|
$6,808
|
|
COMPARISON OF NONINTEREST EXPENSE
|
|||||
|
(In Thousands)
|
Three Months Ended
|
Six Months Ended
|
|||
|
June 30,
|
Mar. 31,
|
June 30,
|
June 30,
|
June 30,
|
|
|
2011
|
2011
|
2010
|
2011
|
2010
|
|
|
Salaries and wages
|
$3,469
|
$3,401
|
$3,199
|
$6,870
|
$6,277
|
|
Pensions and other employee benefits
|
1,018
|
1,306
|
983
|
2,324
|
1,922
|
|
Occupancy expense, net
|
665
|
732
|
651
|
1,397
|
1,350
|
|
Furniture and equipment expense
|
453
|
484
|
542
|
937
|
1,110
|
|
FDIC Assessments
|
189
|
325
|
415
|
514
|
819
|
|
Pennsylvania shares tax
|
320
|
319
|
306
|
639
|
611
|
|
Other operating expense
|
1,680
|
1,696
|
1,607
|
3,376
|
3,611
|
|
Total Noninterest Expense
|
$7,794
|
$8,263
|
$7,703
|
$16,057
|
$15,700
|