Attached files
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8-K - FORM 8-K - CITIZENS & NORTHERN CORP | v309216_8k.htm |
EX-99.2 - EXHIBIT 99.2 - CITIZENS & NORTHERN CORP | v309216_ex99-2.htm |
EX-99.1 - EXHIBIT 99.1 - CITIZENS & NORTHERN CORP | v309216_ex99-1.htm |
EXHIBIT 99.3 – Supplemental, Unaudited Financial Information
AVAILABLE-FOR-SALE SECURITIES | March 31, 2012 | December 31, 2011 | March 31, 2011 | |||||||||||||||||||||
(In Thousands) | Amortized | Fair | Amortized | Fair | Amortized | Fair | ||||||||||||||||||
Cost | Value | Cost | Value | Cost | Value | |||||||||||||||||||
Obligations of U.S. Government agencies | $ | 24,810 | $ | 25,488 | $ | 24,877 | $ | 25,587 | $ | 36,963 | $ | 37,129 | ||||||||||||
Obligations of states and political subdivisions: | ||||||||||||||||||||||||
Tax-exempt | 128,628 | 133,337 | 129,401 | 132,962 | 127,107 | 121,789 | ||||||||||||||||||
Taxable | 16,846 | 17,206 | 14,004 | 14,334 | 11,676 | 11,507 | ||||||||||||||||||
Mortgage-backed securities | 117,251 | 121,943 | 116,602 | 121,769 | 99,220 | 103,627 | ||||||||||||||||||
Collateralized mortgage obligations, Issued by U.S. Government agencies | 162,846 | 165,764 | 161,818 | 165,131 | 152,718 | 153,558 | ||||||||||||||||||
Corporate bonds | 0 | 0 | 0 | 0 | 1,000 | 1,019 | ||||||||||||||||||
Trust preferred securities issued by individual institutions | 7,783 | 8,147 | 7,334 | 8,146 | 6,640 | 8,040 | ||||||||||||||||||
Collateralized debt obligations: | ||||||||||||||||||||||||
Pooled trust preferred securities - senior tranches | 4,993 | 4,638 | 4,996 | 4,638 | 9,937 | 9,038 | ||||||||||||||||||
Pooled trust preferred securities - mezzanine tranches | 0 | 782 | 0 | 730 | 0 | 0 | ||||||||||||||||||
Other collateralized debt obligations | 660 | 660 | 660 | 660 | 681 | 681 | ||||||||||||||||||
Total debt securities | 463,817 | 477,965 | 459,692 | 473,957 | 445,942 | 446,388 | ||||||||||||||||||
Marketable equity securities | 6,151 | 8,699 | 5,643 | 7,728 | 4,789 | 6,586 | ||||||||||||||||||
Total | $ | 469,968 | $ | 486,664 | $ | 465,335 | $ | 481,685 | $ | 450,731 | $ | 452,974 |
Summary of Loans by Type | ||||||||||||
(Excludes Loans Held for Sale) | ||||||||||||
(In Thousands) | Mar. 31, | Dec. 31, | Mar. 31, | |||||||||
2012 | 2011 | 2011 | ||||||||||
Residential mortgage: | ||||||||||||
Residential mortgage loans - first liens | $ | 326,343 | $ | 331,015 | $ | 335,362 | ||||||
Residential mortgage loans - junior liens | 27,590 | 28,851 | 30,403 | |||||||||
Home equity lines of credit | 30,534 | 30,037 | 26,887 | |||||||||
1-4 Family residential construction | 8,409 | 9,959 | 7,666 | |||||||||
Total residential mortgage | 392,876 | 399,862 | 400,318 | |||||||||
Commercial: | ||||||||||||
Commercial loans secured by real estate | 158,323 | 156,388 | 164,201 | |||||||||
Commercial and industrial | 54,370 | 57,191 | 57,494 | |||||||||
Political subdivisions | 36,517 | 37,620 | 36,226 | |||||||||
Commercial construction and land | 23,577 | 23,518 | 23,340 | |||||||||
Loans secured by farmland | 10,334 | 10,949 | 11,715 | |||||||||
Multi-family (5 or more) residential | 6,326 | 6,583 | 7,600 | |||||||||
Agricultural loans | 2,982 | 2,987 | 3,199 | |||||||||
Other commercial loans | 323 | 552 | 862 | |||||||||
Total commercial | 292,752 | 295,788 | 304,637 | |||||||||
Consumer | 11,960 | 12,665 | 14,004 | |||||||||
Total | 697,588 | 708,315 | 718,959 | |||||||||
Less: allowance for loan losses | (7,370 | ) | (7,705 | ) | (8,846 | ) | ||||||
Loans, net | $ | 690,218 | $ | 700,610 | $ | 710,113 |
Loans Held for Sale | ||||||||||||
(In Thousands) | Mar. 31, | Dec. 31, | Mar. 31, | |||||||||
2012 | 2011 | 2011 | ||||||||||
Residential mortgage loans originated and serviced - outstanding balance | $ | 64,569 | $ | 57,577 | $ | 35,493 | ||||||
Less: outstanding balance of loans sold | (62,346 | ) | (56,638 | ) | (35,358 | ) | ||||||
Loans held for sale, net | $ | 2,223 | $ | 939 | $ | 135 |
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||
(In Thousands) | ||||||||||||||||
3 Months | 3 Months | Year | 3 Months | |||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||
Mar. 31, | Dec. 31, | Dec. 31, | Mar. 31, | |||||||||||||
2012 | 2011 | 2011 | 2011 | |||||||||||||
Balance, beginning of period | $ | 7,705 | $ | 8,177 | $ | 9,107 | $ | 9,107 | ||||||||
Charge-offs | (176 | ) | (479 | ) | (1,446 | ) | (97 | ) | ||||||||
Recoveries | 23 | 94 | 329 | 28 | ||||||||||||
Net charge-offs | (153 | ) | (385 | ) | (1,117 | ) | (69 | ) | ||||||||
(Credit) provision for loan losses | (182 | ) | (87 | ) | (285 | ) | (192 | ) | ||||||||
Balance, end of period | $ | 7,370 | $ | 7,705 | $ | 7,705 | $ | 8,846 |
PAST DUE AND NONPERFORMING ASSETS | ||||||||||||
(In Thousands) | ||||||||||||
Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||
2012 | 2011 | 2011 | ||||||||||
Total loans past due 30-89 days and still accruing | $ | 5,827 | $ | 7,898 | $ | 5,291 | ||||||
Nonperforming assets: | ||||||||||||
Total loans past due 90 days or more and still accruing | $ | 1,252 | $ | 1,267 | $ | 453 | ||||||
Total nonaccrual loans | 6,961 | 7,197 | 10,371 | |||||||||
Foreclosed assets held for sale (real estate) | 977 | 1,235 | 707 | |||||||||
Total nonperforming assets | $ | 9,190 | $ | 9,699 | $ | 11,531 | ||||||
Total nonperforming assets as a % of assets | 0.70 | % | 0.73 | % | 0.88 | % |
Table
III - 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 | |||||||||||||||||||
3/31/2012 | Return/ | 12/31/2011 | Return/ | 3/31/2011 | 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 | $ | 331,007 | 3.32 | % | $ | 337,405 | 3.27 | % | $ | 327,104 | 3.42 | % | ||||||||||||
Tax-exempt | 127,729 | 6.03 | % | 130,819 | 5.87 | % | 126,973 | 6.08 | % | |||||||||||||||
Total available-for-sale securities | 458,736 | 4.08 | % | 468,224 | 4.00 | % | 454,077 | 4.16 | % | |||||||||||||||
Interest-bearing due from banks | 34,334 | 0.33 | % | 36,404 | 0.31 | % | 31,750 | 0.20 | % | |||||||||||||||
Loans held for sale | 1,057 | 3.42 | % | 953 | 7.08 | % | 1,722 | 4.95 | % | |||||||||||||||
Loans receivable: | ||||||||||||||||||||||||
Taxable | 665,936 | 6.26 | % | 669,755 | 6.33 | % | 687,253 | 6.40 | % | |||||||||||||||
Tax-exempt | 36,218 | 6.36 | % | 35,744 | 6.29 | % | 35,073 | 6.44 | % | |||||||||||||||
Total loans receivable | 702,154 | 6.27 | % | 705,499 | 6.33 | % | 722,326 | 6.40 | % | |||||||||||||||
Total Earning Assets | 1,196,281 | 5.25 | % | 1,211,080 | 5.25 | % | 1,209,875 | 5.40 | % | |||||||||||||||
Cash | 16,891 | 17,812 | 16,985 | |||||||||||||||||||||
Unrealized gain/loss on securities | 17,923 | 12,710 | (588 | ) | ||||||||||||||||||||
Allowance for loan losses | (7,739 | ) | (8,255 | ) | (9,201 | ) | ||||||||||||||||||
Bank premises and equipment | 18,898 | 19,286 | 22,474 | |||||||||||||||||||||
Intangible Asset - Core Deposit Intangible | 204 | 230 | 315 | |||||||||||||||||||||
Intangible Asset - Goodwill | 11,942 | 11,942 | 11,942 | |||||||||||||||||||||
Other assets | 48,282 | 50,743 | 60,758 | |||||||||||||||||||||
Total Assets | $ | 1,302,682 | $ | 1,315,548 | $ | 1,312,560 | ||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
Interest checking | $ | 161,524 | 0.13 | % | $ | 161,274 | 0.15 | % | $ | 163,479 | 0.32 | % | ||||||||||||
Money market | 205,866 | 0.19 | % | 208,855 | 0.18 | % | 203,439 | 0.30 | % | |||||||||||||||
Savings | 104,532 | 0.10 | % | 101,405 | 0.10 | % | 92,625 | 0.25 | % | |||||||||||||||
Certificates of deposit | 191,924 | 1.73 | % | 195,774 | 1.81 | % | 212,133 | 1.99 | % | |||||||||||||||
Individual Retirement Accounts | 146,241 | 0.96 | % | 149,219 | 1.12 | % | 161,174 | 2.99 | % | |||||||||||||||
Other time deposits | 942 | 0.00 | % | 801 | 0.50 | % | 956 | 0.42 | % | |||||||||||||||
Total interest-bearing deposits | 811,029 | 0.67 | % | 817,328 | 0.73 | % | 833,806 | 1.25 | % | |||||||||||||||
Borrowed funds: | ||||||||||||||||||||||||
Short-term | 7,422 | 0.16 | % | 12,673 | 0.09 | % | 16,865 | 0.14 | % | |||||||||||||||
Long-term | 115,607 | 4.00 | % | 127,692 | 4.04 | % | 145,802 | 4.01 | % | |||||||||||||||
Total borrowed funds | 123,029 | 3.77 | % | 140,365 | 3.68 | % | 162,667 | 3.61 | % | |||||||||||||||
Total Interest-bearing Liabilities | 934,058 | 1.08 | % | 957,693 | 1.16 | % | 996,473 | 1.63 | % | |||||||||||||||
Demand deposits | 189,275 | 186,562 | 168,211 | |||||||||||||||||||||
Other liabilities | 9,452 | 8,721 | 6,461 | |||||||||||||||||||||
Total Liabilities | 1,132,785 | 1,152,976 | 1,171,145 | |||||||||||||||||||||
Stockholders' equity, excluding other comprehensive income/loss | 158,801 | 154,484 | 142,054 | |||||||||||||||||||||
Other comprehensive income/loss | 11,096 | 8,088 | (639 | ) | ||||||||||||||||||||
Total Stockholders' Equity | 169,897 | 162,572 | 141,415 | |||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,302,682 | $ | 1,315,548 | $ | 1,312,560 | ||||||||||||||||||
Interest Rate Spread | 4.17 | % | 4.09 | % | 3.77 | % | ||||||||||||||||||
Net Interest Income/Earning Assets | 4.41 | % | 4.33 | % | 4.05 | % | ||||||||||||||||||
Total Deposits (Interest-bearing and Demand) | $ | 1,000,304 | $ | 1,003,890 | $ | 1,002,017 |
(1) | Rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis. |
The income tax rate used was 35% for the 3 months ended March 31, 2012 and 34% for the 2011 tables. | |
(2) | Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings. |
COMPARISON OF NONINTEREST INCOME | ||||||||||||
(In Thousands) | Three Months Ended | |||||||||||
Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||
2012 | 2011 | 2011 | ||||||||||
Service charges on deposit accounts | $ | 1,161 | $ | 1,187 | $ | 1,131 | ||||||
Service charges and fees | 220 | 206 | 218 | |||||||||
Trust and financial management revenue | 929 | 864 | 877 | |||||||||
Brokerage revenue | 168 | 89 | 123 | |||||||||
Insurance commissions, fees and premiums | 34 | 65 | 68 | |||||||||
Interchange revenue from debit card transactions | 495 | 495 | 452 | |||||||||
Net gains from sales of loans | 265 | 430 | 259 | |||||||||
Increase in cash surrender value of life insurance | 119 | 127 | 122 | |||||||||
Net gain (loss) from other real estate | 104 | 33 | (19 | ) | ||||||||
Impairment loss on limited partnership investment | 0 | 0 | (948 | ) | ||||||||
Other operating income | 264 | 215 | 272 | |||||||||
Total other operating income, before realized gains on available-for-sale securities, net | $ | 3,759 | $ | 3,711 | $ | 2,555 |
COMPARISON OF NONINTEREST EXPENSE | ||||||||||||
(In Thousands) | Three Months Ended | |||||||||||
Mar. 31, | Dec. 31, | Mar. 31, | ||||||||||
2012 | 2011 | 2011 | ||||||||||
Salaries and wages | $ | 3,575 | $ | 3,545 | $ | 3,401 | ||||||
Pensions and other employee benefits | 1,366 | 1,063 | 1,306 | |||||||||
Occupancy expense, net | 636 | 600 | 732 | |||||||||
Furniture and equipment expense | 482 | 497 | 484 | |||||||||
FDIC Assessments | 146 | 144 | 325 | |||||||||
Pennsylvania shares tax | 332 | 322 | 319 | |||||||||
Other operating expense | 1,980 | 1,777 | 1,696 | |||||||||
Total Noninterest Expense | $ | 8,517 | $ | 7,948 | $ | 8,263 |