EXHIBIT 99.1
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
CORPORATE PROFILE
Citizens & Northern Corporation is a bank holding company with assets exceeding $1.2 billion and is headquartered in Wellsboro, PA. Banking services are provided by its subsidiary, Citizens & Northern Bank, from 24 banking offices in Bradford, Cameron, Lycoming, McKean, Potter, Sullivan and Tioga Counties.
Banking offices in Cameron, McKean and Potter Counties are operated by Citizens Trust Company, a division of Citizens & Northern Bank.
In addition, the corporation’s subsidiary, First State Bank, operates banking offices in Canisteo and Hornell, NY in Steuben County.
Investment and insurance products are offered through Citizens & Northern Bank’s subsidiary, C&N Financial Services Corp.
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 R. Brown, corporate secretary.
FOCUS ON THE FUTURE
a message to our shareholders
What an interesting time we live in. There is certainly no certainty, except maybe that the rate of change and upheaval will continue to increase geometrically, if not exponentially. Over the past year, we have witnessed a subprime mortgage credit meltdown that has dramatically affected some of the largest banks in the United States and Europe. The full effects of the subprime crisis are not yet known. The housing bubble, or “froth” as Alan Greenspan called it, has subsided in those areas where prices and speculation were driven to new irrational heights. Since September 2007, to head off a recession, the Federal Reserve has reduced the Fed Funds rate five (5) times or a total of 2.25% to 3.00%, where it was in May of 2005. By the time you read this, the Fed may have dropped rates again. As this is being written, the U.S. Congress is working on a fiscal stimulus package that is thought, in addition to the Fed’s actions, will help prevent or ease the effects of a recession. Deposit pricing is now driven not only by local competition, but also by large Internet banks. Loan pricing is likewise affected. There is more that could be mentioned, but you get the idea.
Through the turmoil, C&N has remained true to its long-term strategy to stay an independent community bank focused on serving its shareholders, customers, communities and employees. Over the past five years, our strategy to increase our market footprint and thus our opportunities for future net income growth in Lycoming County, Pennsylvania and Steuben County, New York has made some progress, but we are not where we want to be. We added four (4) new offices in Lycoming County and acquired First State Bank in Steuben County just as the Federal Reserve began increasing the Fed Funds rate and the rate curve began to flatten and later invert. The added costs associated with de novo branch expansion and the acquisition of First State Bank coupled with reduced interest spread has affected our earnings over the past three years.
In September, to address the disappointing bottom line performance, C&N’s board and management began several expense reduction and revenue enhancement initiatives, including a nearly 10% reduction in staffing levels and the initiation of a new overdraft privilege program. During the first quarter of 2008, we will engage a bank-consulting firm to help us identify other opportunities to improve our operational efficiency and financial results.
During 2007, Citizens Bancorp and its subsidiary, Citizens Trust Company, were merged into C&N. The merger added new market opportunities to our west, and we were able to add four experienced and competent senior bankers to our team, including Charles Updegraff, who joined us as our first Chief Operating Officer. Our people converted First State Bank’s and Citizens Trust Company’s core banking computer systems into our system; and converted Citizens Trust Company’s trust core processing system data into C&N’s trust system. Those conversions will save us money and make our processes more efficient.
Continued Page 2
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 1
from page 1
Computer conversions are very complex and time consuming. One conversion in a year is a great accomplishment. Three in a year, unless performed by staff solely dedicated to nothing but conversions, isSUPER. Praise and thanks goes out to our Management Information Systems staff, Trust operations staff and all the people who managed to perform their regular jobs while also participating in the conversions.
As mentioned earlier, our 2007 bottom line results were disappointing. Net income dropped 13% from the previous year. Embedded in the numbers are some positive signs, however. The interest margin after provision for loan losses increased 8.4%, due mainly to an 8.9% increase in interest and dividend income. Trust, insurance and broker dealer revenue increased 28.5%. Trust assets-under-management increased 27.3% for the year, 19.3% due to the addition of Citizens Trust Company. Security Gains declined substantially from $5 million in 2006 to $127 thousand in 2007. A security portfolio restructuring in mid-year generated more than a $2 million securities loss that completely erased gains to that point. Proceeds from that restructuring were reinvested at higher rates to improve the return on the securities portfolio. Other expenses were up about 5.3% due in part to expenses associated with the Citizens Trust Company merger.
Assets increased 13.9% due to a combination of two significant items: The merger with Citizens Trust Company and the execution of an $86 million securities transaction near the end of the year. The securities transaction was funded with repurchase agreement funds containing embedded interest rate caps that will significantly reduce our interest rate volatility in a rising rate environment. The securities transaction is expected to add over $780 thousand to our bottom line in 2008.
Tangible equity to tangible assets at 9.79% is nearly two-times the regulatory “well capitalized” threshold of 5%. The Risk Based capital ratio at 16.52% is well in excess of the “well capitalized” threshold of 10%. The non performing loans to total assets decreased over 28% to 0.54%.
During 2007, we introduced our commercial customers to the Remote Deposit Capture service, enabling them to save time and money by scanning and transmitting checks for deposit via the Internet.
We also updated our Internet Banking System to provide for user authentication and to communicate with our core data processing system. Internally, we converted all of our offices to remote capture that allows them to transmit scanned images of all their processed items. Branch remote capture has allowed us to extend the daily cut off times for all of our offices to 4:30 p.m. and it has eliminated the need for an afternoon courier. We also became Check 21 compliant, which allows us to transmit and receive electronically our check clearings with the Federal Reserve. Additionally, we added a new mortgage loan application feature to our web site that is already generating Internet-generated lending opportunities.
Without tipping our hand to our local competition, we can tell you that we have several more delivery enhancements planned for 2008. We believe those enhancements will improve the value we provide to current customers and will attract new customers. That value includes continued efforts to improve and enhance the quality of personal service we provide each of our customers. We are committed to quick, competitively priced and accurate service. We know we have the team to deliver on that promise.
continued page 3
FOCUS ON THE FUTURE
a message to our shareholders
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 2
FOCUS ON THE FUTURE
a message to our shareholders
from page 2
During 2007, we extended best wishes to 10 retiring employees with a combined 245 years of service:
| | | |
l Sandy Andrews | | 34 years |
l Marcella Chaykosky | | 23 years |
l Raechelle Curry | | 23 years |
l Diana Davis | | 34 years |
l Nancy Erway | | 43 years |
l Sheryl Groover | | 6 years |
l Nancy Lent | | 40 years |
l Helen Perry | | 5 years |
l Barbara Shedden | | 27 years |
l Joy Wisckol | | 10 years |
We all thank them for their dedication and loyalty to C&N, and wish them all a long and fulfilling retirement.
At the 2008 Annual Meeting, Karl Kroeck will be retiring from active board status to that of a Director Emeritus. After 12 years of service, Karl deserves a break, but he intends to remain actively involved as a Director Emeritus, especially in the role of advisor on agriculture and agri-business. We thank Karl for his service and devotion to C&N.
We thank all of our shareholders and customers for their continued support of C&N and our dedication to remaining a locally focused, independent and profitable community banking organization.
A copy of the Corporation’s Annual Report Form 10-K for the year ended December 31, 2007, as required to be filed with the Securities and Exchange Commission, will be furnished to any stockholder without charge upon written request to the Corporation’s Treasurer at our principal office at P.O. Box 58, Wellsboro, PA 16901.
The information is also available through the Citizens & Northern Bank 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.
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 15th, 2008.
General shareholder inquiries should be sent to: Citizens & Northern Corporation, 90-92 Main Street, P.O. Box 58, Wellsboro, PA 16901.
Our Stock Transfer Agent is: American Stock Transfer & Trust Company, 59 Maiden Lane, Plaza Level, New York, NY 10038.
Telephone: 800-278-4353
Our Independent Auditors are:
Parente Randolph, LLC, 400 Market Street,
Williamsport, PA 17701
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 3
Total Shareholders’ Equity — in millions
Total Assets — in millions
Cash Dividends Declared Per Share*
| | |
| * | | In addition to cash dividends, a 1% stock dividend has been declared for each year. |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 4
Seated, from left, Dawn A. Besse, EVP and Director of Sales, Service and Employee Development; Craig G. Litchfield, Chairman, President and CEO; Deborah E. Scott, EVP and Senior Trust Officer; standing, from left, Mark A. Hughes, EVP and Chief Financial Officer; Charles H. Updegraff, Jr., EVP and Chief Operating Officer; Thomas L. Rudy, Jr., EVP and Director of Branch Delivery; Harold F. Hoose, III, EVP and Director of Lending.
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
10 N. Main Street, Coudersport, PA 16915
814-274-9150
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
3 Main Street, Canisteo, NY 14823
607-698-4295
10 N. Main Street, Coudersport, PA 16915
814-272-9150
135 E. Fourth Street, Emporium, PA 15834
814-486-1112
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 5
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 2007 and 2006:
2007
| | | | | | | | | | | | | |
| | | | | | | | | | | Dividend |
| | | | | | | | | | | Declared |
| | | High | | Low | | Per Quarter |
| First Quarter | | $ | 23.21 | | | $ | 20.30 | | | | 0.24 | |
| Second Quarter | | $ | 21.13 | | | $ | 19.36 | | | | 0.24 | |
| Third Quarter | | $ | 19.82 | | | $ | 17.82 | | | | 0.24 | |
| Fourth Quarter | | $ | 20.19 | | | $ | 17.28 | | | | 0.24 | |
Plus 1% stock dividend
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 1% stock dividend
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 6
COMMON STOCK AND PER SHARE DATA
Per Common Share (1)
| | | | | | | | | | | | | | | | | | | | | |
| | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| Net income per share — basic | | $ | 1.19 | | | $ | 1.42 | | | $ | 1.53 | | | $ | 1.76 | | | $ | 1.93 | |
| Net income per share — diluted | | $ | 1.19 | | | $ | 1.42 | | | $ | 1.52 | | | $ | 1.75 | | | $ | 1.92 | |
| Cash dividends declared per share | | $ | 0.96 | | | $ | 0.96 | | | $ | 0.93 | | | $ | 0.89 | | | $ | 0.85 | |
| Stock dividend | | | 1 | % | | | 1 | % | | | 1 | % | | | 1 | % | | | 1 | % |
| Book value at period-end | | $ | 15.34 | | | $ | 15.51 | | | $ | 15.58 | | | $ | 15.61 | | | $ | 14.88 | |
| Tangible book value at period-end | | $ | 13.85 | | | $ | 15.13 | | | $ | 15.18 | | | $ | 15.61 | | | $ | 14.88 | |
| Weighted average common shares outstanding — basic | | | 8,784,134 | | | | 8,422,495 | | | | 8,458,813 | | | | 8,433,494 | | | | 8,418,231 | |
| Weighted average common shares outstanding — diluted | | | 8,795,366 | | | | 8,448,169 | | | | 8,517,598 | | | | 8,481,750 | | | | 8,466,946 | |
| | |
| (1) | | All share and per share data have been restated to give effect to stock dividends and splits. |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 7
FIVE-YEAR SUMMARY OF OPERATIONS
INCOME STATEMENT
(in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| Interest and fee income | | $ | 70,221 | | | $ | 64,462 | | | $ | 61,108 | | | $ | 57,922 | | | $ | 55,223 | |
| Interest expense | | | 33,909 | | | | 30,774 | | | | 25,687 | | | | 22,606 | | | | 23,537 | |
| Net interest income | | | 36,312 | | | | 33,688 | | | | 35,421 | | | | 35,316 | | | | 31,686 | |
| Provision for loan losses | | | 529 | | | | 672 | | | | 2,026 | | | | 1,400 | | | | 1,100 | |
| Net interest income after provision for loan losses | | | 35,783 | | | | 33,016 | | | | 33,395 | | | | 33,916 | | | | 30,586 | |
| Noninterest income excluding securities gains and gains from sale of credit card loans | | | 10,440 | | | | 7,970 | | | | 7,636 | | | | 6,922 | | | | 6,595 | |
| Net gains on available-for-sale securities | | | 127 | | | | 5,046 | | | | 1,802 | | | | 2,877 | | | | 4,799 | |
| Gain from sale of credit card loans | | | — | | | | 340 | | | | 1,906 | | | | — | | | | — | |
| Noninterest expense | | | 33,283 | | | | 31,614 | | | | 28,962 | | | | 26,001 | | | | 22,114 | |
| Income before income tax provision | | | 13,067 | | | | 14,758 | | | | 15,777 | | | | 17,714 | | | | 19,866 | |
| Income tax provision | | | 2,643 | | | | 2,772 | | | | 2,793 | | | | 2,851 | | | | 3,609 | |
| Net income | | $ | 10,424 | | | $ | 11,986 | | | $ | 12,984 | | | $ | 14,863 | | | $ | 16,257 | |
| | | | | | | | | | | | | | | | | | | | | |
BALANCE SHEET AT YEAR END
(in thousands) |
| | | | | | | | | | | | | | | | | | | | | |
| Available-for-sale securities | | $ | 432,755 | | | $ | 356,665 | | | $ | 427,298 | | | $ | 475,085 | | | $ | 483,032 | |
| Gross loans | | | 735,941 | | | | 687,501 | | | | 653,299 | | | | 579.613 | | | | 524,897 | |
| Allowance for loan losses | | | 8,859 | | | | 8,201 | | | | 8,361 | | | | 6,787 | | | | 6,097 | |
| Assets | | | 1,283,746 | | | | 1,127,368 | | | | 1,162,954 | | | | 1,123,002 | | | | 1,066,901 | |
| Deposits | | | 838,503 | | | | 760,349 | | | | 757,065 | | | | 676,545 | | | | 658,065 | |
| Borrowings | | | 300,132 | | | | 228,440 | | | | 266,939 | | | | 305,005 | | | | 272,953 | |
| Stockholders’ equity | | $ | 137,781 | | | $ | 129,888 | | | $ | 131,968 | | | $ | 131,585 | | | $ | 125,343 | |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 8
FIVE-YEAR SUMMARY OF OPERATIONS
AVERAGE BALANCE SHEET
(in thousands)
| | | | | | | | | | | | | | | | | | | | | |
| | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| Total assets | | $ | 1,178,904 | | | $ | 1,134,689 | | | $ | 1,144,619 | | | $ | 1,114,041 | | | $ | 1,034,720 | |
| Earning assets | | | 1,090,035 | | | | 1,055,103 | | | | 1,065,189 | | | | 1,036,535 | | | | 959,556 | |
| Gross loans | | | 729,269 | | | | 662,714 | | | | 618,344 | | | | 551,352 | | | | 485,150 | |
| Deposits | | | 812,255 | | | | 750,982 | | | | 702,404 | | | | 669,307 | | | | 651,026 | |
| Stockholders’ equity | | | 138,669 | | | | 131,082 | | | | 132,465 | | | | 128,374 | | | | 122,271 | |
KEY RATIOS
| | | | | | | | | | | | | | | | | | | | | |
| | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| Return on average assets | | | 0.88 | % | | | 1.06 | % | | | 1.13 | % | | | 1.33 | % | | | 1.57 | % |
| Return on average equity | | | 7.52 | % | | | 9.14 | % | | | 9.80 | % | | | 11.58 | % | | | 13.30 | % |
| Average equity to average assets | | | 11.76 | % | | | 11.55 | % | | | 11.57 | % | | | 11.52 | % | | | 11.82 | % |
| Net interest margin (1) | | | 3.51 | % | | | 3.42 | % | | | 3.62 | % | | | 3.78 | % | | | 3.70 | % |
| Efficiency (2) | | | 71.19 | % | | | 75.89 | % | | | 67.26 | % | | | 61.56 | % | | | 57.77 | % |
| Cash dividends as a % of diluted earnings per share | | | 80.67 | % | | | 67.61 | % | | | 61.18 | % | | | 50.86 | % | | | 44.27 | % |
| Tier 1 leverage | | | 10.92 | % | | | 11.22 | % | | | 10.62 | % | | | 10.69 | % | | | 10.80 | % |
| Tier 1 risk-based capital | | | 15.46 | % | | | 16.51 | % | | | 16.52 | % | | | 17.17 | % | | | 18.67 | % |
| Total risk-based capital | | | 16.52 | % | | | 17.97 | % | | | 18.19 | % | | | 18.89 | % | | | 20.61 | % |
| | |
| (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. |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 9
The following table presents summarized quarterly financial data for 2007 (unaudited)
(In thousands, except per share data):
2007 QUARTER ENDED
| | | | | | | | | | | | | | | | | |
| | | March 31 | | June 30 | | Sept. 30 | | Dec. 31 |
| Interest income | | $ | 16,243 | | | $ | 17,692 | | | $ | 18,058 | | | $ | 18,228 | |
| Interest expense | | | 8,000 | | | | 8,679 | | | | 8,551 | | | | 8,679 | |
| Interest margin | | | 8,243 | | �� | | 9,013 | | | | 9,507 | | | | 9,549 | |
| Provision for loan losses | | | 229 | | | | — | | | | — | | | | 300 | |
| Interest margin after provision for loan losses | | | 8,014 | | | | 9,013 | | | | 9,507 | | | | 9,249 | |
| Other income | | | 2,088 | | | | 2,644 | | | | 2,877 | | | | 2,831 | |
| Net gains (losses) on available- for-sale securities | | | 1,161 | | | | (1,172 | ) | | | (68 | ) | | | 206 | |
| Other expenses | | | 8,247 | | | | 8,189 | | | | 8,691 | | | | 8,156 | |
| Income before tax provision | | | 3,016 | | | | 2,296 | | | | 3,625 | | | | 4,130 | |
| Income tax provision | | | 558 | | | | 360 | | | | 777 | | | | 948 | |
| Net income | | $ | 2,458 | | | $ | 1,936 | | | $ | 2,848 | | | $ | 3,182 | |
| | | |
| Net income per share — basic | | $ | 0.29 | | | $ | 0.22 | | | $ | 0.32 | | | $ | 0.35 | |
| | | |
| Net income per share — diluted | | $ | 0.29 | | | $ | 0.22 | | | $ | 0.32 | | | $ | 0.35 | |
| | | |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 10
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 | | | — | | | | — | | | | — | | | | 340 | |
| Net gains on available- for-sale securities | | | 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 | | | 0.33 | | | | 0.38 | | | | 0.39 | | | | 0.32 | |
| | | |
| Net income per share — diluted | | $ | 0.33 | | | $ | 0.38 | | | $ | 0.39 | | | $ | 0.32 | |
| | | |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 11
TRUST AND FINANCIAL MANAGEMENT GROUP
Some members of our Trust team include, seated, from left, Rhonda Litchfield, Trust Investment Officer; Marla McIlvain, Assistant Trust Officer; Justin Krellner, Trust Team Manager and standing, f r om left, Larry Alderson, Certified Trust and Financial Advisor; Michael Charles, Tax Officer and Matthew Landis, Senior Financial Consultant.
| | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| Assets | | $ | 659,193 | | | $ | 517,775 | | | $ | 418,259 | | | $ | 383,062 | | | $ | 329,493 | |
| Revenue | | $ | 3,440 | | | $ | 2,409 | | | $ | 2,088 | | | $ | 2,105 | | | $ | 1,733 | |
The composition of Trust assets under management and accounts as of December 31, 2007 and 2006 follow:
INVESTMENTS(In Thousands)
| | | | | | | | | |
| | | 2007 | | 2006 |
| Mutual funds | | $ | 237,824 | | | $ | 182,140 | |
| Bonds | | | 178,829 | | | | 144,924 | |
| Stocks | | | 157,690 | | | | 147,851 | |
| Savings and Money Market funds | | | 76,866 | | | | 39,967 | |
| Miscellaneous | | | 6,267 | | | | 837 | |
| Real Estate | | | 1,098 | | | | 1,341 | |
| Mortgages | | | 619 | | | | 715 | |
| |
| Total | | $ | 659,193 | | | $ | 517,775 | |
ACCOUNTS(In Thousands)
| | | | | | | | | |
| | | 2007 | | 2006 |
| Pension/profit sharing | | $ | 245,217 | | | $ | 203,589 | |
| Investment management | | | 194,844 | | | | 138,090 | |
| Trusts | | | 124,125 | | | | 84,506 | |
| Custody | | | 90,936 | | | | 84,871 | |
| Estates | | | 3,020 | | | | 5,727 | |
| Guardianships | | | 1,051 | | | | 992 | |
| |
| Total | | $ | 659,193 | | | $ | 517,775 | |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 12
Our Advisory Boards provide us with invaluable counsel.
Their knowledge of and dedication to their communities serves our local offices very well.
We are grateful for their time, talent and loyalty to C&N Corporation.
| | |
| | | |
| |
| ATHENS and SAYRE | | |
| |
| | | |
| Virginia L. Reap | | Kathy L. Watkins |
| Warren J. Croft | | Max P. Gannon, Jr. |
| R. Bruce Haner | | Susan E. Hartley |
| Dr. Edward Jones | | Wayne E. Lowery |
| David Rosenbloom | | Mary Theresa Sullivan |
| L. Joseph Tomasso, Jr. | | |
| | | |
| |
| COUDERSPORT | | |
| |
| | | |
| Michael D. Wetzel, Jr. | | Joseph F. Costa |
| Robert C. Smith | | Patrice D. Levavasseur |
| Edwin H. Corey | | |
| | | |
| |
| DUSHORE | | |
| |
| | | |
| Helen W. Ferris | | Ronald A. Gutosky |
| Leo F. Lambert | | Dennis K. McCarty |
| Kerry A. Meehan | | |
| | | |
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| EAST SMITHFIELD | | |
| |
| | | |
| Peggy A. Brown | | Roy L. Beardslee |
| Thomas G. Furman | | James G. Wilcox |
| | | |
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| ELKLAND | | |
| |
| | | |
| Lynette Burrous | | Mary C. Heitzenrater |
| Mark R. Howe | | John C. Kenyon |
| Edward L. Learn | | |
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| |
| EMPORIUM | | |
| |
| | | |
| Kimberlea Whiting | | Anthony C. Moscato |
| Edwin W. Tompkins, III | | |
| | | |
| |
| JERSEY SHORE | | |
| |
| | | |
| Debra R. Martin | | Thomas F. Charles |
| Daniel P. Lazorka | | Melanie McLane |
| David Schall | | |
| | |
| | | |
| |
| KNOXVILLE | | |
| |
| | | |
| Amy B. Wherley | | Brian A. Bicksler |
| L. Grant Gehman | | Karl W. Kroeck |
| William W. Roosa | | |
| | | |
| |
| LAPORTE | | |
| |
| | | |
| Linda M. Etzel | | David L. Baumunk |
| Robin A. Fiester | | William B. Saxe |
| Leonard Simpson | | |
| | | |
| |
| LIBERTY | | |
| |
| | | |
| Ann L. Yuscavage | | Lyle R. Brion |
| Gary L. Dinnison | | James H. Route, Jr. |
| Ray E. Wheeland | | |
| | | |
| |
| MANSFIELD | | |
| |
| | | |
| Diane K. Wilson | | Clifford L. Cross, Jr. |
| David Kurzejewski | | Larry Mansfield |
| Joseph R. Maresco | | |
| | | |
| |
| MUNCY | | |
| |
| | | |
| Dawn Myers | | James R. Fetter, Jr. |
| Kenneth F. Fry | | Thomas D. Hess |
| Roger D. Jarrett | | |
| | | |
| |
| OLD LYCOMING | | |
| |
| | | |
| Stacy Elliott | | John Confer |
| Karen Maseto | | Louis “Terry” Waldman |
| | | |
| |
| PORT ALLEGANY | | |
| |
| | | |
| Bryan T. Smith | | Edwin M. Schott |
| P. Gregory Buchanan | | Madelyn M. Farber |
(Continued Page 14)
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 13
(Continued from Page 13)
| | |
| | | |
| |
| RALSTON | | |
| |
| | | |
| Courtney Baker | | William W. Brooks, III |
| Stephen L. Davis | | Ronald W. Roan |
| | | |
| |
| TIOGA | | |
| |
| | | |
| Brett Kennedy | | C. Frederick LaVancher |
| Leisa L. LaVancher | | Dirk D’Haene |
| | | |
| |
| TOWANDA and MONROETON |
| |
| | | |
| Gary Baker | | James A. Bowen |
| Mark Gannon | | W. John Greenland |
| Jeffrey A. Smith | | Mark W. Smith |
| | | |
| |
| TROY | | |
| |
| | | |
| Mark C. Griffis | | Dennis F. Beardslee |
| Roy W. Cummings, Jr. | | J. Robert Garrison |
| Gregory W. Powers | | Evan S. Williams, Jr. |
| | |
| | | |
| |
| WELLSBORO | | |
| |
| | | |
| Todd Coolidge | | Donald R. Abplanalp |
| Robert F. Cox, Jr. | | R. Robert DeCamp |
| Craig Eccher | | Jan E. Fisher |
| Scott Lewis | | Edward H. Owlett, III |
| F. David Pennypacker | | |
| | | |
| |
| WILLIAMSPORT/SOUTH WILLIAMSPORT |
| |
| | | |
| Keith Boatman | | James Bower, Jr. |
| Daniel Mathers | | Raymond Mattie |
| Ann M. Tyler | | Frank G. Pellegrino |
| | | |
| |
| WYSOX | | |
| |
| | | |
| Debra S. Kithcart | | Robert L. Fulmer |
| Gary Hennip | | James E. Towner |
| Walter E. Warburton, Jr. | | |
WESTERN REGION — BOBBIE KAYSER
Seated, right. Offices: Canisteo, Coudersport, Elkland, Emporium, Hornell, Knoxville, Liberty, Mansfield, Port Allegany, Tioga, Troy, Wellsboro.
EASTERN REGION — JAMES PARKS
Standing, right. Offices: Athens, Dushore, East Smithfield, Laporte, Monroeton, Sayre, Towanda, Wysox.
SOUTHERN REGION — JAMES LAZORKA
Standing, left. Offices: Jersey Shore, Muncy, Old Lycoming, Ralston, South Williamsport, Williamsport.
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 14
Citizens & Northern Corporation
Citizens & Northern Bank Board of Directors
Seated, from left, James E. Towner, Susan E. Hartley, Jan E. Fisher, Ann M. Tyler and Karl W. Kroeck.
Standing, from left, R. Bruce Haner, Leo F. Lambert, Leonard Simpson, Raymond R. Mattie, R. Robert DeCamp, Edward H. Owlett, III, Dennis F. Beardslee, Craig G. Litchfield and Charles H. Updegraff, Jr. Absent from photo, Edward L. Learn.
| | | |
| 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 | | C&N Chairman of the Board, President and Chief Executive Officer |
| Raymond R. Mattie | | President, M&S Conversion Co., Inc. |
| 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 |
| Charles H. Updegraff, Jr. | | C&N Executive Vice President and Chief Operating Officer |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 15
2007 FIRST STATE BANK BOARD OF DIRECTORS
The 2007 First State Bank Board of Directors, seated, from left, Wil liam O. Hatch, Patrick F. Donnelly and Carl E. Chase. Standing, from left, Brian C. Schu, Karl W. Kroeck and Harold L. Miller. Absent from photo, Craig G. Litchfield and Charles H. Updegraff, Jr.
| | | |
| Carl E. Chase | | Pharmacist, retired |
| Patrick F. Donnelly | | Chairman, President & CEO, First State Bank and Canisteo Valley Corp. |
| William O. Hatch | | President, Staffing & Payroll Solutions, Inc. |
| Karl W. Kroeck | | Farmer |
| Craig G. Litchfield | | Chairman, President and CEO, Citizens & Northern Corp. and Bank |
| Harold L. Miller | | Building construction, retired |
| Brian C. Schu | | Attorney at law |
| Charles H. Updegraff, Jr. | | Executive Vice President, COO, Citizens & Northern Bank |
FSB HORNELL ADVISORY BOARD MEMBERS
| | | |
| Michael Deebs | | Owner, Hornell Sears store |
| Frank Spitulnik | | President and Owner, Information Boulevard, Inc. |
| William Hatch | | President, Staffing and Payroll Solutions, Inc. |
| Brian Schu | | Attorney-at-Law |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
page 16
OUR OFFICES
| | | | | |
| CITIZENS & NORTHERN BANK | | |
| Athens | | 428 S. Main St., Athens, PA 18810 | | 570-888-2291 |
| Dushore | | 111 W. Main St., Dushore, PA 18614 | | 570-928-8124 |
| East Smithfield | | Main St., East Smithfield, PA 18817 | | 570-596-3131 |
| Elkland | | 104 Main St., Elkland, PA 16920 | | 814-258-5111 |
| Jersey Shore | | 230 Railroad St., Jersey Shore, PA 17740 | | 570-398-4555 |
| Knoxville | | 102 E. Main St., Knoxville, PA 16928 | | 814-326-4151 |
| Laporte | | Main St., Laporte, PA 18626 | | 570-946-4011 |
| Liberty | | 4534 Williamson Trail, Liberty, PA 16930 | | 570-324-2331 |
| Mansfield | | 1085 Main St., Mansfield, PA 16933 | | 570-662-1111 |
| Monroeton | | RR2, Monroeton, PA 18832 | | 570-265-2157 |
| Muncy | | 3461 Rte. 405 Hwy., Muncy, PA 17756 | | 570-546-6666 |
| Old Lycoming | | 1510 Dewey Ave., Williamsport, PA 17701 | | 570-323-9305 |
| Ralston | | 24 Thompson St., Ralston, PA 17763 | | 570-995-5421 |
| Sayre | | 1827 Elmira St., Sayre, PA 18840 | | 570-888-2220 |
| South Williamsport | | 2 E. Mountain Ave., South Williamsport, PA 17702 | | 570-601-3016 |
| Tioga | | Main St., Tioga, PA 16946 | | 570-835-5236 |
| Towanda | | 428 Main St., Towanda, PA 18848 | | 570-265-6171 |
| Troy | | Court House Square, Troy, PA 16947 | | 570-297-2158 |
| Wellsboro | | 90-92 Main St., Wellsboro, PA 16901 | | 570-724-3411 |
| Williamsport | | 130 Court St., Williamsport, PA 17701 | | 570-320-0100 |
| Wysox | | Route 6, Wysox, PA 18854 | | 570-265-9148 |
| |
| FIRST STATE BANK | | |
| Canisteo | | 3 Main St., Canisteo, NY 14823 | | 607-698-4295 |
| Hornell | | 6250 Cty. Rte. 64, Hornell, NY 14843 | | 607-324-4081 |
| |
| CITIZENS TRUST COMPANY | | |
| Coudersport | | 10 N. Main St., Coudersport, PA 16915 | | 814-274-9150 |
| Emporium | | 135 E. Fourth St., Emporium, PA 15834 | | 814-486-1112 |
| Port Allegany | | 100 Maple St., Port Allegany, PA 16743 | | 814-642-2571 |
CITIZENS & NORTHERN CORPORATION 2007 ANNUAL HIGHLIGHTS
