MESSAGE TO OUR SHAREHOLDERS
From Craig G. Litchfield
Chairman,President and CEO
As we reflect on the events, challenges and successes of 2006, there have been many areas that can be highlighted. However, in this prolonged period of a flat or now slightly inverted rate curve, which hinders and over-shadows a community bank’s ability to grow or maintain earning levels, much of our focus has been on positioning the organization for the future. Our Lycoming County initiative and the acquisition of First State Bank in Steuben County, New York were initiated to increase our geographic footprint and to increase our opportunities for future earnings. The investment in the new ventures will reduce net income until they can begin covering their costs and producing positive contributions to our bottom line. The planned acquisition of Citizens Trust Company will further add to our future opportunities for core deposit and revenue growth. We believe the Citizens Trust merger will be accretive to earnings beginning in 2008.
Our corporate strategy has been, and continues to be, a focus on enhancing long-term shareholder value while simultaneously delivering quality banking services to our customers, being a good corporate citizen in our communities and enhancing the skills of our employees to further their employment and advancement opportunities. Now that our core operating system conversion is mostly behind us, we are devoting more of our attention to delivering the best customer service experience offered by any banking institution in our market. Our people are making a difference. Our customers feel valued and well served. Now and for the long-term, C&N will be the bank of choice in our markets.
NEW CONSTRUCTION
During 2006, we opened our sixth office in Lycoming County in Old Lycoming Township. We received a very warm reception from the community and the growth of the office’s deposits and loans is meeting our expectations. We moved the administrative personnel into a new spacious building in March. This new building should serve us well for decades to come. Finally, we celebrated the grand reopening of the South Hornell office of First State Bank in the third quarter. The office was expanded to provide room for lending staff, which are now able to more conveniently and swiftly serve the credit needs of the local customers.
NEW SERVICES
Early in 2006, we reorganized our Internet Banking Department into our new Cash Management Department. We began offering a complete line of credit and repo balance sweeps and Internet Business Banking solutions (e.g., direct deposit payroll, ACH originations, Wire Transfers, and tax payments). Within the first quarter of 2007, we will be offering remote deposit capture services for our clients that will allow them to securely scan and electronically transmit their deposited checks conveniently from their place of business. This service saves them a trip to the bank.
Through 2007, we will be converting our offices to remote branch capture of checks and transaction tickets. This new technology will extend the cutoff times for all of our offices to their closing times. The need to courier the documents to our processing centers in time to process them and send them by courier to the Federal Reserve required that some of our more remote offices had to set their cut-off time as early as 1:30 p.m. This extended cut-off time will enhance our service and the value we deliver to our customers. Also, as part of the introduction of remote capture, we have become Check 21 compliant, which gives us the ability to transmit and receive check images from the Federal Reserve.
We have just installed and brought on line a new telephone-banking product, which will be followed with the introduction of a new Internet Banking system before the end of the first quarter of 2007.
(Continued Page 2)
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| Annual Highlights, 2006 | | PAGE |
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MESSAGE TO OUR SHAREHOLDERS — Cont. From Page 1
Both of these technologies will offer enhanced service to both our business and retail customers and improve the productivity of our back-office.
FINANCIAL RESULTS
Net income for 2006 dropped by 7.69% from the previous year. Interest and dividend income increased 5.5% due substantially to an increase in net loans of 5.3%. We decreased available-for-sale securities by 16.53%. As of year-end, our loan to deposit ratio had increased to 86% and our loan to asset ratio had increased to 60%. Interest expense grew by 19.9% due to the repricing of deposits and borrowings at higher rates due to the current rate curve scenario. The net result was a reduction in the interest margin of 4.9%. As a result of the settlement of several large problem loans, we reduced our provision for loan losses 67%. Gains on securities increased by 180%. Other expenses grew by over 9% mainly due to increased depreciation expense related to new facilities, and additional staffing costs for the new offices. Management continues to seek ways to contain or reduce expenses and to increase revenues, especially from non-interest related sources.
Total Assets decreased 3% to $1.127 billion. As we reduced our available for sale securities portfolio we reduced our borrowed funds by $40 million or 16.7%. In the current rate curve environment, there are no acceptable opportunities to borrow and reinvest at a spread that is attractive enough to accept the interest rate risk. Due to their continued sales effort and good investment results, the trust assets under management increased a substantial 24%. When the Citizens Trust acquisition is finalized, total trust assets under management should increase to over $600 million.
Certainly, we are disappointed that our net income continues to drop during this unusually long period of a flat and now inverted interest rate curve. However, we believe that we have positioned ourselves for stronger long-term performance by increasing our geographic market, installing state of the art operating systems and by continuing to deliver exceptional customer service. We have a very well trained and committed base of loyal employees, who will assure that we succeed in enhancing long-term shareholder value.
RETIREMENTS
Every year we bid farewell and happy retirement to the very people who have contributed to our success. All of these folks retire too young.Nancy Beard, Staff Auditor, retired after 20 years.Linda Prough-Shuey, Compensation and Performance Manager, retired after 26 years.Mary Maggitti, Senior Teller in our Elkland office, retired after 43 years.Edwina Sims, Loan Processor in our Troy Office, retired after 34 years.Kathie Osgood, Corporate Secretary and my right and left hands, retired after 34 years. AndRich Wilkinson, former Wellsboro Branch Manager and a Regional Lending Specialist, retired after 37 years. We will miss these six wonderful and talented people who devoted 184 years of their lives to the success of C&N. We thank them for their commitment and loyalty.
THE FUTURE
We are excited about our upcoming merger with Citizens Bancorp. It is a well run and strong organization. Their well-trained management team will be great additions who will assure that we achieve the expected expense savings and revenue enhancements that make this acquisition attractive. We are delighted at the opportunity to welcome the employees of Citizens Trust Company to become part of the C&N Team.
Finally, it is you, our shareholders and customers, that we thank for your continued support.
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| PAGE | | Annual Highlights, 2006 |
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CORPORATE OVERVIEW
Citizens & Northern Corporation is a bank holding company with assets exceeding $1.1 billion and is headquartered in Wellsboro, PA. Banking services are provided by its subsidiary, Citizens & Northern Bank, from 21 banking offices in Bradford, Lycoming, Sullivan and Tioga Counties in Pennsylvania. Investment and insurance products are offered through Citizens & Northern Bank’s subsidiary, C&N Financial Services Corporation. Citizens & Northern Corporation stock trades on the NASDAQ Capital Market Securities under the symbol CZNC.
Citizens & Northern Corporation officers include: Craig G. Litchfield, chairman of the board, president and chief executive officer; Mark A. Hughes, treasurer and Jessica Brown, corporate secretary.
Canisteo Valley Corporation has assets of $43.0 million and delivers services to its customers through its two First State Bank offices in Canisteo and South Hornell, NY.
Canisteo Valley Corporation’s Board of Directors includes: Patrick F. Donnelly, chairman; Carl E. Chase, William O. Hatch, Karl W. Kroeck, Craig G. Litchfield, Harold Miller and Brian C. Schu.
STOCKHOLDER INQUIRIES
A copy of the Corporation’s Annual Report Form 10-K for the year ended December 21, 2006, as required to be filed with the Securities and Exchange Commission, will be furnished to a stockholder without charge upon written request to the Corporation’s Treasurer at the principal office at P.O. Box 58, Wellsboro, PA 16901. The information is also available through C&N’s website at www.cnbankpa.com and at the website of the Securities and Exchange Commission at www.sec.gov.
This statement has not been reviewed or confirmed for accuracy or relevance by the Federal Deposit Insurance Corporation.
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| Annual Highlights, 2006 | | PAGE |
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| PAGE | | Annual Highlights, 2006 |
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Investor Information
The Annual Meeting of Shareholders will be held in the second floor Training Room at the Wellsboro Branch office, 90-92 Main Street in Wellsboro, PA at 2:00 p.m. Tuesday, April 17th, 2006.
General shareholder inquiries should be sent to:
CITIZENS & NORTHERN CORPORATION
90-92 Main Street, P.O. Box 58, Wellsboro, PA 16901
STOCK TRANSFER AGENT
American Stock Transfer & Trust Company
59 Maiden Lane, Plaza Level, New York, NY 10038
800-278-4353
Our Independent Auditors are
PARENTE RANDOLPH, LLC
400 Market Street, Williamsport, PA 17701
Contact Us
Our service departments may be contacted directly:
FUNDS MANAGEMENT
10 Nichols Street, Wellsboro, PA 16901
1-800-577-9397
ACCOUNT SERVICES
90-92 Main Street, Wellsboro, PA 16901
1-800-726-2256
CASH MANAGEMENT
10 Nichols Street., Wellsboro, PA 16901
1-877-838-2517
C&N FINANCIAL SERVICES
90 Main Street, Wellsboro, PA 16901
1-866-ASK-CNFS
TRUST AND FINANCIAL MANAGEMENT
90-92 Main Street, Wellsboro, PA 16901
1-800-487-8784
1827 Elmira Street, Sayre, PA 18840
1-888-760-8192
428 Main Street, Towanda, PA 18848
1-888-987-8784
130 Court Street,Williamsport, PA 17701
1-866-732-7213
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| Annual Highlights, 2006 | | PAGE |
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Trades of the Corporation’s stock are executed through various brokers who maintain a market in the Corporation’s stock. The Corporation’s stock is listed on NASDAQ Capital Market Securities with the trading symbol CZNC.
The following table sets forth the approximate high and low sales price of the common stock during 2006 and 2005:
2006
| | | | | | | | | | | | | |
| | | | | | | | | | | Dividend | |
| | | | | | | | | | | Declared | |
| | | High | | | Low | | | Per Quarter | |
| First Quarter | | $ | 29.93 | | | $ | 23.76 | | | | 0.24 | |
| Second Quarter | | $ | 25.72 | | | $ | 20.11 | | | | 0.24 | |
| Third Quarter | | $ | 24.12 | | | $ | 19.80 | | | | 0.24 | |
| Fourth Quarter | | $ | 22.77 | | | $ | 21.29 | | | | 0.24 | |
| | | | | | | | | | | Plus a 1% stock dividend
|
| | | | | | | | | | |
|
2005
| | | | | | | | | | | | | |
| | | | | | | | | | | Dividend | |
| | | | | | | | | | | Declared | |
| | | High | | | Low | | | Per Quarter | |
| First Quarter | | $ | 32.25 | | | $ | 26.50 | | | | 0.23 | |
| Second Quarter | | $ | 33.85 | | | $ | 25.80 | | | | 0.23 | |
| Third Quarter | | $ | 37.51 | | | $ | 25.22 | | | | 0.23 | |
| Fourth Quarter | | $ | 29.46 | | | $ | 24.49 | | | | 0.24 | |
| | | | | | | | | | | Plus a 1% stock dividend
|
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| PAGE | | Annual Highlights, 2006 |
| 6 | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2006 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | |
| | | |
| Net income per share — basic | | $ | 1.44 | | | $ | 1.55 | | | $ | 1.78 | | | $ | 1.95 | | | $ | 1.79 | |
| Net income per share — diluted | | $ | 1.43 | | | $ | 1.54 | | | $ | 1.77 | | | $ | 1.94 | | | $ | 1.79 | |
| Cash dividends declared per share | | $ | 0.96 | | | $ | 0.93 | | | $ | 0.89 | | | $ | 0.85 | | | $ | 0.77 | |
| Stock dividend | | | 1 | % | | | 1 | % | | | 1 | % | | | 1 | % | | | 1 | % |
| Book value at period-end | | $ | 15.66 | | | $ | 15.74 | | | $ | 15.76 | | | $ | 15.03 | | | $ | 13.90 | |
| Tangible book value at period-end | | $ | 15.29 | | | $ | 15.33 | | | $ | 15.76 | | | $ | 15.03 | | | $ | 13.90 | |
| Weighted average common shares outstanding — basic | | | 8,339,104 | | | | 8,375,062 | | | | 8,349,994 | | | | 8,334,882 | | | | 8,334,380 | |
| Weighted average common shares outstanding — diluted | | | 8,364,778 | | | | 8,433,847 | | | | 8,398,520 | | | | 8,383,597 | | | | 8,356,268 | |
(1) All share and per share data have been restated to give effect to stock dividends and splits.
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| Annual Highlights, 2006 | | PAGE |
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(in thousands)
INCOME STATEMENT
| | | | | | | | | | | | | | | | | | | | | |
| | | 2006 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | |
| | | |
| Interest and fee income | | $ | 64,462 | | | $ | 61,108 | | | $ | 57,922 | | | $ | 55,223 | | | $ | 57,285 | |
| Interest expense | | | 30,774 | | | | 25,687 | | | | 22,606 | | | | 23,537 | | | | 26,315 | |
| Net interest income | | | 33,688 | | | | 35,421 | | | | 35,316 | | | | 31,686 | | | | 30,970 | |
| Provision for loan losses | | | 672 | | | | 2,026 | | | | 1,400 | | | | 1,100 | | | | 940 | |
| Net interest income after provision for loan losses | | | 33,016 | | | | 33,395 | | | | 33,916 | | | | 30,586 | | | | 30,030 | |
| Other income | | | 7,970 | | | | 7,636 | | | | 6,922 | | | | 6,595 | | | | 6,624 | |
| Securities gains | | | 5,046 | | | | 1,802 | | | | 2,877 | | | | 4,799 | | | | 2,888 | |
| Gain from sale of credit card loans | | | 340 | | | | 1,906 | | | | | | | | | | | | | |
| Other expenses | | | 31,614 | | | | 28,962 | | | | 26,001 | | | | 22,114 | | | | 20,849 | |
| Income before income tax provision | | | 14,758 | | | | 15,777 | | | | 17,714 | | | | 19,866 | | | | 18,693 | |
| Income tax provisions | | | 2,772 | | | | 2,793 | | | | 2,851 | | | | 3,609 | | | | 3,734 | |
| Net income | | $ | 11,986 | | | $ | 12,984 | | | $ | 14,863 | | | $ | 16,257 | | | $ | 14,959 | |
| | | | | | | | | | | | | | | | | | | | | |
| BALANCE SHEET AT YEAR END | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Available-for-sale securities | | $ | 356,665 | | | $ | 427,298 | | | $ | 475,085 | | | $ | 483,032 | | | $ | 512,175 | |
| Gross loans | | | 687,501 | | | | 653,299 | | | | 579,613 | | | | 524,897 | | | | 451,145 | |
| Allowance for loan losses | | | 8,201 | | | | 8,361 | | | | 6,787 | | | | 6,097 | | | | 5,789 | |
| Total assets | | | 1,127,368 | | | | 1,162,954 | | | | 1,123,002 | | | | 1,066,901 | | | | 1,018,768 | |
| Total deposits | | | 760,349 | | | | 757,065 | | | | 676,545 | | | | 658,065 | | | | 640,304 | |
| Borrowings | | | 228,440 | | | | 266,939 | | | | 305,005 | | | | 272,953 | | | | 251,849 | |
| Total stockholders’ equity | | | 129,888 | | | | 131,968 | | | | 131,585 | | | | 125,343 | | | | 115,837 | |
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| PAGE | | Annual Highlights, 2006 |
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(in thousands)
AVERAGE BALANCE SHEET
| | | | | | | | | | | | | | | | | | | | | |
| | | 2006 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | |
| | | |
| Total assets | | $ | 1,134,689 | | | $ | 1,144,619 | | | $ | 1,114,041 | | | $ | 1,034,720 | | | $ | 934,001 | |
| Earning assets | | $ | 1,055,103 | | | $ | 1,065,189 | | | $ | 1,036,535 | | | $ | 959,556 | | | $ | 881,434 | |
| Gross loans | | | 662,714 | | | | 618,344 | | | | 551,352 | | | | 485,150 | | | | 410,670 | |
| Deposits | | | 750,982 | | | | 702,404 | | | | 669,307 | | | | 651,026 | | | | 613,392 | |
| Stockholders’ equity | | | 131,082 | | | | 132,465 | | | | 128,374 | | | | 122,271 | | | | 107,595 | |
| | | | | | | | | | | | | | | | | | | | | |
| KEY RATIOS | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.06 | % | | | 1.13 | % | | | 1.33 | % | | | 1.57 | % | | | 1.59 | % |
| Return on average equity | | | 9.14 | % | | | 9.80 | % | | | 11.58 | % | | | 13.30 | % | | | 13.90 | % |
| Average equity to average assets | | | 11.55 | % | | | 11.57 | % | | | 11.52 | % | | | 11.82 | % | | | 11.41 | % |
| Net interest margin (1) | | | 3.42 | % | | | 3.62 | % | | | 3.78 | % | | | 3.70 | % | | | 3.85 | % |
| Efficiency (2) | | | 75.89 | % | | | 67.26 | % | | | 61.56 | % | | | 57.77 | % | | | 55.46 | % |
| Cash dividends as a % of diluted earnings per share | | | 67.13 | % | | | 60.39 | % | | | 50.28 | % | | | 43.81 | % | | | 43.02 | % |
| Tier 1 leverage | | | 11.22 | % | | | 10.62 | % | | | 10.69 | % | | | 10.80 | % | | | 10.53 | % |
| Tier 1 risk-based capital | | | 16.51 | % | | | 16.52 | % | | | 17.17 | % | | | 18.67 | % | | | 18.41 | % |
| Total risk-based capital | | | 17.97 | % | | | 18.19 | % | | | 18.89 | % | | | 20.61 | % | | | 20.09 | % |
| | |
| (1) | | Rates of return on tax-exempt securities and loans are calculated on a fully-taxable equivalent basis. |
| |
| (2) | | The efficiency ratio is calculated by dividing total noninterest expense by the sum of net interest income and noninterest income excluding securities gains and gains from sale of credit card loans. |
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| Annual Highlights, 2006 | | PAGE |
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The following table presents summarized quarterly financial data for 2006 (unaudited) (In thousands, except per share data).
2006 QUARTER ENDED
| | | | | | | | | | | | | | | | | |
| | | March 31 | | | June 30 | | | Sept. 30 | | | Dec. 31 | |
| | | |
| Interest income | | $ | 15,863 | | | $ | 15,984 | | | $ | 16,152 | | | $ | 16,463 | |
| Interest expense | | $ | 7,278 | | | $ | 7,566 | | | $ | 7,833 | | | $ | 8,097 | |
| Interest margin | | $ | 8,585 | | | $ | 8,418 | | | $ | 8,319 | | | $ | 8,366 | |
| Provision for loan losses | | $ | 600 | | | $ | (300 | ) | | $ | 191 | | | $ | 181 | |
| Interest margin after provision for loan losses | | $ | 7,985 | | | $ | 8,718 | | | $ | 8,128 | | | $ | 8,185 | |
| Other income | | $ | 1,789 | | | $ | 1,937 | | | $ | 2,199 | | | $ | 2,045 | |
| Gain from sale of credit card loans | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 340 | |
| Securities gains (losses) | | $ | 1,315 | | | $ | 1,333 | | | $ | 1,602 | | | $ | 796 | |
| Other expenses | | $ | 7,843 | | | $ | 7,976 | | | $ | 7,640 | | | $ | 8,155 | |
| Income before tax provision | | $ | 3,246 | | | $ | 4,012 | | | $ | 4,289 | | | $ | 3,211 | |
| Income tax provision | | $ | 426 | | | $ | 813 | | | $ | 1,016 | | | $ | 517 | |
| Net income | | $ | 2,820 | | | $ | 3,199 | | | $ | 3,273 | | | $ | 2,694 | |
| Net income per share — basic | | $ | 0.34 | | | $ | 0.38 | | | $ | 0.39 | | | $ | 0.32 | |
| Net income per share — diluted | | $ | 0.33 | | | $ | 0.38 | | | $ | 0.39 | | | $ | 0.32 | |
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PAGE
10 | | Annual Highlights, 2006 |
The following table presents summarized quarterly financial data for 2005 (unaudited) (In thousands, except per share data).
2005 QUARTER ENDED
| | | | | | | | | | | | | | | | | |
| | | March 31 | | | June 30 | | | Sept. 30 | | | Dec. 31 | |
| | | |
| Interest income | | $ | 14,693 | | | $ | 14,908 | | | $ | 15,571 | | | $ | 15,936 | |
| Interest expense | | $ | 5,957 | | | $ | 6,155 | | | $ | 6,426 | | | $ | 7,149 | |
| Interest margin | | $ | 8,736 | | | $ | 8,753 | | | $ | 9,145 | | | $ | 8,787 | |
| Provision for loan losses | | $ | 375 | | | $ | 375 | | | $ | 375 | | | $ | 901 | |
| Interest margin after provision for loan losses | | $ | 8,361 | | | $ | 8,378 | | | $ | 8,770 | | | $ | 7,886 | |
| Other income | | $ | 1,703 | | | $ | 1,889 | | | $ | 2,149 | | | $ | 1,895 | |
| Gain from sale of credit card loans | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 1,906 | |
| Securities gains (losses) | | $ | 1,066 | | | $ | 929 | | | $ | 393 | | | $ | (586 | ) |
| Other expenses | | $ | 7,128 | | | $ | 7,173 | | | $ | 7,303 | | | $ | 7,358 | |
| Income before tax provision | | $ | 4,002 | | | $ | 4,023 | | | $ | 4,009 | | | $ | 3,743 | |
| Income tax provision | | $ | 707 | | | $ | 725 | | | $ | 722 | | | $ | 639 | |
| Net income | | $ | 3,295 | | | $ | 3,298 | | | $ | 3,287 | | | $ | 3,104 | |
| Net income per share — basic | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.37 | |
| Net income per share — diluted | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.39 | | | $ | 0.37 | |
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| Annual Highlights, 2006 | | PAGE
11 |
| | | |
| |  |
| | | |
| | | Seated, from left, Darci Baird, Senior Financial Consultant; Deborah Scott, EVP, Trust Officer and Mary Wood, Trust Account Administrator. In back, Michael Hatlee, Manager, Employee Benefits Delivery and Mark Huffman, VP, Trust Officer. |
(In Thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 2006 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | |
| | | |
| Assets | | $ | 517,775 | | | $ | 418,259 | | | $ | 383,062 | | | $ | 329,493 | | | $ | 285,221 | |
| Revenue | | $ | 2,409 | | | $ | 2,088 | | | $ | 2,105 | | | $ | 1,733 | | | $ | 1,755 | |
The composition of Trust assets under management and accounts as of December 31, 2006 and 2005 are shown in the following table:
(In Thousands)
| | | | | | | | | |
| | | 2006 | | | 2005 | |
| | | |
| INVESTMENTS | | | | | | | | |
| Mutual Funds | | $ | 182,140 | | | $ | 142,597 | |
| Stocks | | | 147,851 | | | | 115,077 | |
| Bonds | | | 144,924 | | | | 122,243 | |
| Savings and Money Market Funds | | | 39,967 | | | | 34,261 | |
| Real Estate | | | 1,341 | | | | 2,305 | |
| Miscellaneous | | | 837 | | | | 665 | |
| Mortgages | | | 715 | | | | 1,111 | |
| Total | | | 517,775 | | | | 418,259 | |
| | | | | | | | | |
| ACCOUNTS | | | | | | | | |
| | | | | | | | | |
| Pension/Profit Sharing | | $ | 203,589 | | | $ | 173,676 | |
| Investment Management | | | 138,090 | | | | 123,335 | |
| Custody | | | 84,871 | | | | 39,219 | |
| Trusts | | | 84,506 | | | | 75,998 | |
| Estates | | | 5,727 | | | | 4,892 | |
| Guardianships | | | 992 | | | | 1,139 | |
| Total | | | 517,775 | | | | 418,259 | |
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PAGE
12 | | Annual Highlights, 2006 |
Our Advisory Boards provide us with invaluable counsel. They are the eyes and ears of the communities we serve. We are truly grateful for their time and talent.
| | | | | | | |
| Athens/Sayre | | Jersey Shore | | Muncy | | Troy |
| Virginia L. Reap | | Debra R. Martin | | Dawn Myers | | Mark C. Griffis |
| Kathy G. Watkins | | Thomas F. Charles | | James R. Fetter, Jr. | | Dennis F. Beardslee |
| Warren J. Croft | | Daniel P. Lazorka | | Kenneth F. Fry | | Roy W. Cummings, Jr. |
| Max P. Gannon, Jr. | | Melanie McLane | | Thomas D. Hess | | J. Robert Garrison |
| R. Bruce Haner | | | | Roger D. Jarrett | | Gregory W. Powers |
| Susan E. Hartley | | Knoxville | | | | Evan S. Williams, Jr. |
| Dr. Edward Jones | | Amy Wherley | | Old Lycoming | | |
| Wayne E. Lowery | | Brian Bicksler | | Stacy Elliott | | Wellsboro |
| David Rosenbloom | | L. Grant Gehman | | John Confer | | Todd Coolidge |
| Mary Theresa Sullivan | | Karl W. Kroeck | | Karen Maseto | | Donald R. Abplanalp |
| L. Joseph Tomasso, Jr. | | William W. Roosa | | Louis “Terry” Waldman | | Robert F. Cox, Jr. |
| | | | | | | R. Robert DeCamp |
Dushore | | Laporte | | Ralston | | Craig Eccher |
| Helen W. Ferris | | Linda M. Etzel | | Courtney Baker | | Jan E. Fisher |
| Ronald A. Gutosky | | David L. Baumunk | | William W. Brooks, III | | Scott Lewis |
| Leo F. Lambert | | Robin A. Fiester | | Stephen L. Davis | | Edward H. Owlett, III |
| Dennis K. McCarty | | William B. Saxe | | | | F. David Pennypacker |
| Kerry A. Meehan | | Leonard Simpson | | Tioga | | |
| | | | | Brett Kennedy | | South Williamsport |
East Smithfield | | Liberty | | C. Frederick LaVancher | | Williamsport |
| Peggy A. Brown | | Ann L. Yuscavage | | Leisa L. LaVancher | | Keith Boatman |
| Roy L. Beardslee | | Lyle R. Brion | | Dirk D’Haene | | James Bower, Jr. |
| Thomas G. Furman | | Gary L. Dinnison | | | | Daniel Mathers |
| James G. Wilcox | | James H. Route, Jr. | | Towanda/Monroeton | | Raymond Mattie |
| | | Ray E. Wheeland | | Valerie W. Kinney | | Frank G. Pellegrino |
Elkland | | | | Gary Baker | | Ann M. Tyler |
| Lynette Burrous | | Mansfield | | James A. Bowen | | |
| Mary C. Heitzenrater | | Diane K. Wilson | | Mark Gannon | | Wysox |
| Mark R. Howe | | Clifford L. Cross, Jr. | | W. John Greenland | | Debra S. Kithcart |
| John C. Kenyon | | David Kurzejewski | | Jeffrey A. Smith | | Lucille P. Donovan |
| Edward L. Learn | | Larry Mansfield | | Mark W. Smith | | Robert L. Fulmer |
| | | Joseph R. Maresco | | | | Gary Hennip |
| | | | | | | James E. Towner |
| | | | | | | Walter E. Warburton, Jr. |
| | |
| Annual Highlights, 2006 | | PAGE
13 |
CITIZENS & NORTHERN BANK OFFICERS
CRAIG G. LITCHFIELD
Chairman, President and Chief Executive Officer
DAWN A. BESSE
Executive Vice President and Director of Sales, Service
and Employee Development
HAROLD F. HOOSE, III
Executive Vice President and Director of Lending
MARK A. HUGHES
Executive Vice President and Chief Financial Officer
THOMAS L. RUDY, JR.
Executive Vice President and Director of Branch Delivery
DEBORAH E. SCOTT
Executive Vice President and Senior Trust Officer
JESSICA R. BROWN
Corporate Secretary
VICE PRESIDENTS
Jeffery E. Aeppli, Commercial Loan Officer, Wysox
Larry D. Alderson, Trust Officer, Sayre
Thomas L. Briggs, Facilities Management, Wellsboro
William A. Burget, Regional Loan Specialist and Business Development Officer, Old Lycoming
Carl M. Chambers, Western Region Commercial Team Leader, Wellsboro
Rick J. Cisco, Senior Systems Analyst, Wellsboro
Jon F. Cleveland, Trust Officer, Wellsboro
Shelley L. D’Haene, Cash Management Coordinator, Wellsboro
Kevin J. Dougherty, Commercial Loan Officer, Sayre
Terry R. Depew, Regional Lending Specialist, Athens
Helen W. Ferris, Dushore Branch Manager
Marisa A. Flynn, Loan Administrator, Williamsport
Mark C. Griffis, Troy Branch Manager
Michael S. Hatlee, Trust Officer, Sayre
Mark A. Huffman, Trust Officer, Williamsport
Karen L. Keck, Director of Deposit Services, Wellsboro
Scott A. Keck, Retail Lending Coordinator, Wellsboro
Valerie W. Kinney, Towanda and Monroeton Branch Manager
Debra S. Kithcart, Wysox Branch Manager
George E. Kunkel, Vice President/Finance, Wellsboro
James P. Lazorka, Regional Executive, Williamsport
Rhonda J. Litchfield, Trust Investment Officer, Wellsboro
Glenda R. Marzo, Auditor, Wellsboro
Kim L. Miller, Regional Loan Specialist, Wellsboro
James E. Parks, Regional Executive, Towanda
Roberta C. Plank, Regional Executive, Wellsboro
John M. Reber, Director of Risk Management, Wellsboro
James H. Shelmire, Senior Systems Analyst, Wellsboro
Bruce Smithgall, Commercial Services, Williamsport
Nancy L. Tubbs, Compliance Officer, Wellsboro
Kevin Weinhoffer, Commercial Lending, Williamsport
Ann L. Yuscavage, Liberty Branch Manager
Our Executive Management Team, from left, Harold F. Hoose, III, Thomas L. Rudy, Jr., and Mark A. Hughes. Absent: Dawn A. Besse and Deborah E. Scott.
ASSISTANT VICE PRESIDENTS
Darci Baird, Senior Financial Consultant, Sayre
Courtney J. Baker, Ralston Branch Manager
Keith A. Boatman, Williamsport and South Williamsport Branch Manager
Peter J. Boergermann, Senior Network Engineer, Wellsboro
Christopher E. Bolt, Senior Systems Analyst, Wellsboro
Rosalie L. Bordas, Account Services Manager, Wellsboro
Alison S. Broughton, Mortgage Specialist, Wellsboro
Lori Brown, Trust Officer, Towanda
Peggy A. Brown, East Smithfield Branch Manager
Lynette M. Burrous, Elkland Branch Manager
James D. Butters, Director of Financial Services Support, Trust, Wellsboro
Keith C. Cavanaugh, Commercial Lending, Wellsboro
Michael Charles, Trust, Wellsboro
Todd Coolidge, Wellsboro Branch Manager
Raechelle N. Curry, Loan Officer, Dushore
Stacy Y. Elliott, Old Lycoming Branch Manager
Linda M. Etzel, Laporte Branch Manager
Linda L. Gordner, Loan Officer, Muncy
George M. Greeley, Loan Officer, Wellsboro
Joan L. Grenell, Staff Accountant, Towanda
William Holmes, Loan Officer, Troy
Brett Kennedy, Tioga Branch Manager
Sophia Levindoski, Assistant Controller, Wellsboro
Debra R. Martin, Jersey Shore Branch Manager
Steven J. Moore, Workout and Recovery Officer, Williamsport
Dawn L. Myers, Muncy Branch Manager
Philip A. Prough, Director of Financial Services, Trust, Wellsboro
Eileen K. Ranck, BankCard Manager, Wellsboro
Virginia L. Reap, Athens Branch Manager
Christopher J. Rell, Appraiser, Williamsport
David C. Schucker, Loan Officer, Troy
Stacey A. Sickler, Mortgage Specialist, Sayre
Chad R. Smith, Loan Officer, Towanda
Brian J. Tevlin, Trust Officer, Wellsboro
Thomas Wagner, AVP/Financial Analysis, Wellsboro
Kathy G. Watkins, Sayre Branch Manager
Tracy E. Watkins, Human Resources, Wellsboro
Amy B. Wherley, Knoxville Branch Manager
Brenda B. Whiteley, Loan Officer, Dushore
Diane K. Wilson, Mansfield Branch Manager
Mary J. Wood, Trust Officer, Wellsboro
| | |
| PAGE | | Annual Highlights, 2006 |
| 14 | | |
ASSISTANT CASHIERS
Sandra G. Andrews, Trust, Wellsboro
Margaret J. Black, Loan Officer, Laporte
Joan M. Blackwell, Loan Officer, Liberty
Claudia Brown, Operations Manager, Wellsboro
Marcella J. Chaykosky, Assistant Branch Manager, Sayre
Lisa L. Cook, Loan Officer, Tioga
William O. Cook, Cash Management Relationship Manager, Sayre
Lauri Crawford, Funds Management, Wellsboro
Dorine M. Crisman, Loan Officer, Wysox
Jessica L. Dickey, Cash Management Relationship Manager, Williamsport
Stacy R. Dreilbelbis, Trust Operations Manager, Wellsboro
Mark W. Elsbree, Loan Officer, Sayre
Yvonne M. Gill, Marketing Manager, Wellsboro
Michael J. Goodreau, Loan Officer, Wellsboro
Teri L. Hackett, Funds Management Officer, Wellsboro
Rosalie Hall, Branch Operations Manager, Troy
Kelly Isaacson, Loan Officer, Mansfield
Adam M. Madigan, Loan Officer, Athens
Marla McIlvain, Assistant Trust Officer, Wellsboro
Sandra J. McNeal, Loan Officer, East Smithfield
Sandra A. Parulas, Teller and CSR Specialist, Wellsboro
David Poust, Retail and Commercial Lender, Williamsport
Joan Rohe, Staff Accountant, Towanda
Deborah E. Sample, Operations Manager, Monroeton
Wendy Smith, Account Services Assistant Manager, Wellsboro
Adrienne Snyder, Assistant Auditor, Wellsboro
Robert J. Sullivan, Mortgage Specialist, Williamsport
Debbie Topf, Loan Operations Specialist, Wellsboro
Ashley J. Walker, Assistant Trust Officer, Williamsport
The 2006 First State Bank Board of Directors, seated, from left, William O. Hatch, Patrick F. Donnelly and Carl E. Chase. Standing, from left, Brian C. Schu, Karl Kroeck and Harold L. Miller.
Absent: Craig G. Litchfield.
BOARD OF DIRECTORS
| | | |
| Patrick F. Donnelly | | Chairman, President & CEO, First State Bank & Canisteo Valley Corp. |
| William O. Hatch | | President, Staffing & Payroll Solutions, Inc. |
| Harold L. Miller | | Building construction, retired |
| Carl E. Chase | | Pharmacist, retired |
| Brian C. Schu | | Attorney-at-law |
| Karl Kroeck | | Farmer |
| Craig G. Litchfield | | Chairman, President and CEO, Citizens & Northern Corp. |
| | |
| Annual Highlights, 2006 | | PAGE |
| | | 15 |
CITIZENS & NORTHERN CORPORATION,
CITIZENS & NORTHERN BANK BOARD OF DIRECTORS
The 2006 Board of Directors, seated, from left, Leonard Simpson, Craig G. Litchfield and Dennis F. Beardslee. Standing, from left, R. Robert DeCamp, Ann M. Tyler, Edward H. Owlett, III, Jan E. Fisher, James E. Towner, Susan E. Hartley, Karl W. Kroeck, Leo F. Lambert and R. Bruce Haner. Absent from photo: Edward L. Learn.
BOARD OF DIRECTORS
| | | | |
| | Dennis F. Beardslee | | Owner, Terrace Lanes Bowling Center |
| | R. Robert DeCamp | | President, Patterson Lumber Co., Inc. |
| | Jan E. Fisher | | Executive Vice President and COO, Laurel Health System |
| | R. Bruce Haner | | Auto buyer for new car dealers |
| | Susan E. Hartley | | Attorney at Law |
| | Karl W. Kroeck | | Farmer |
| | Leo F. Lambert | | President and General Manager, Fitzpatrick & Lambert, Inc. |
| | Edward L. Learn | | Former owner, Learn Hardware and Building Supply |
| | Craig G. Litchfield | | Chairman of the Board, President and Chief Executive Officer |
| | Edward H. Owlett, III | | President and CEO, Putnam Company |
| | Leonard Simpson | | Attorney at Law |
| | James E. Towner | | General Manager, The Times Tribune |
| | Ann M. Tyler | | Certified Public Accountant, Ann M. Tyler CPA, PC |
| | |
| PAGE | | |
| 16 | | Annual Highlights, 2006 |
