Citizens & Northern (CZNC) 8-K C&N DECLARES DIVIDEND AND Announces FOURTH QUARTER 2019 UNAUDITED Financial RESULTS

EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data)       (Unaudited)

	AS OF OR FOR THE
	YEARS ENDED						%
	DECEMBER 31,						INCREASE
	2019			2018			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	19,504		$	22,013			-11.40	%
Return on Average Assets (Annualized)		1.27	%		1.72	%		-26.16	%
Return on Average Equity (Annualized)		8.50	%		11.72	%		-27.47	%
BALANCE SHEET HIGHLIGHTS
Total Assets	$	1,654,145		$	1,290,893			28.14	%
Available-for-Sale Debt Securities		346,723			363,273			-4.56	%
Loans (Net)		1,172,386			818,254			43.28	%
Allowance for Loan Losses		9,836			9,309			5.66	%
Deposits and Repo Sweep Accounts		1,254,588			1,039,625			20.68	%
OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained	$	178,446		$	171,750			3.90	%
Trust Assets Under Management		1,007,113			862,517			16.76	%
SHAREHOLDERS' VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.46		$	1.79			-18.44	%
Net Income - Diluted	$	1.46		$	1.79			-18.44	%
Dividends - Quarterly	$	1.08		$	1.08			0.00	%
Dividends - Special	$	0.10		$	0.00
Common Book Value	$	17.84		$	16.02			11.36	%
Tangible Common Book Value (a)	$	15.68		$	15.05			4.19	%
Market Value (Last Trade)	$	28.25		$	26.43			6.89	%
Market Value/Common Book Value		158.35	%		164.98	%		-4.02	%
Market Value/Tangible Common Book Value		180.17	%		175.61	%		2.60	%
Price Earnings Multiple (Annualized)		19.35			14.77			31.01	%
Dividend Yield (Annualized, Excluding Special Dividend)		3.82	%		4.09	%		-6.60	%
Common Shares Outstanding, End of Period		13,703,022			12,319,330			11.23	%

14

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS (Continued)

(Dollars In Thousands, Except Per Share Data)       (Unaudited)

	AS OF OR FOR THE
	YEARS ENDED						%
	DECEMBER 31,						INCREASE
	2019			2018			(DECREASE)
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets (a)		13.22	%		14.50	%		-8.83	%
Nonperforming Assets / Total Assets		0.80	%		1.37	%		-41.61	%
Allowance for Loan Losses / Total Loans		0.83	%		1.12	%		-25.89	%
Total Risk Based Capital Ratio (b)		20.58	%		24.42	%		-15.72	%
Tier 1 Risk Based Capital Ratio (b)		19.08	%		23.24	%		-17.90	%
Common Equity Tier 1 Risk Based Capital Ratio (b)		19.08	%		23.24	%		-17.90	%
Leverage Ratio (b)		13.10	%		14.78	%		-11.37	%
AVERAGE BALANCES
Average Assets	$	1,540,469		$	1,276,140			20.71	%
Average Equity	$	229,446		$	187,895			22.11	%
EFFICIENCY RATIO (c)
Net Interest Income on a Fully Taxable-Equivalent
Basis (c)	$	55,532		$	47,004			18.14	%
Noninterest Income		19,284			18,597			3.69	%
Total (1)	$	74,816		$	65,601			14.05	%
Noninterest Expense Excluding Merger Expenses (2)	$	45,438		$	39,158			16.04	%
Efficiency Ratio = (2)/(1)		60.73	%		59.69	%		1.74	%

(a) Tangible book value per common share and tangible common equity as a percentage of tangible assets are non-U.S. GAAP ratios.  Management believes this non-GAAP information is helpful in evaluating the strength of the Corporation's capital and in providing an alternative, conservative valuation of the Corporation's net worth.  The ratios shown above are based on the following calculations of tangible assets and tangible common equity:

Total Assets	$	1,654,145		$	1,290,893
Less: Intangible Assets, Primarily Goodwill		(29,635	)		(11,951	)
Tangible Assets	$	1,624,510		$	1,278,942
Total Shareholders' Equity	$	244,452		$	197,368
Less: Intangible Assets, Primarily Goodwill		(29,635	)		(11,951	)
Tangible Common Equity (3)	$	214,817		$	185,417
Common Shares Outstanding, End of Period (4)		13,703,022			12,319,330
Tangible Common Book Value per Share = (3)/(4)	$	15.68		$	15.05

(b) Capital ratios for the most recent period are estimated.

(c) The efficiency ratio is a non-GAAP ratio that is calculated as shown above.  For purposes of calculating the efficiency ratio, net interest income on a fully taxable-equivalent basis includes amounts of interest income on tax-exempt securities and loans that have been increased to a fully taxable-equivalent basis, using the Corporation's marginal federal income tax rate of 21%. In the calculation above, management excluded merger-related expenses.  These expenses included expenses related to the acquisition of Monument Bancorp, Inc. which closed on April 1, 2019.  Also excluded were expenses associated with analysis of the acquisition of Covenant Bancorp, Inc., which is expected to close in the third quarter 2020.

15

QUARTERLY CONDENSED, CONSOLIDATED

INCOME STATEMENT INFORMATION

(Dollars In Thousands, Except Per Share Data)

(Unaudited)

	For the Three Months Ended:
	Dec. 31,		Sept. 30,		June 30,			March 31,			Dec. 31,			Sept. 30,		June 30,			March 31,
	2019		2019		2019			2019			2018			2018		2018			2018
Interest income	$	17,290	$	17,277	$	17,139		$	13,065		$	13,304		$	12,800	$	12,334		$	11,890
Interest expense		2,999		3,000		2,934			1,350			1,312			1,241		1,079			993
Net interest income		14,291		14,277		14,205			11,715			11,992			11,559		11,255			10,897
Provision (credit) for loan losses		652		1,158		(4	)		(957	)		252			60		(20	)		292
Net interest income after provision (credit) for loan losses		13,639		13,119		14,209			12,672			11,740			11,499		11,275			10,605
Noninterest income		5,066		4,963		4,849			4,406			5,040			4,462		4,689			4,406
Net gains (losses) on securities		3		13		7			0			(4	)		569		1,468			0
Merger-related expenses		281		206		3,301			311			127			200		0			0
Other noninterest expenses		11,834		11,486		11,422			10,696			9,947			9,633		9,684			9,895
Income before income tax provision		6,593		6,403		4,342			6,071			6,702			6,697		7,748			5,116
Income tax provision		1,135		1,096		693			981			1,021			1,111		1,377			741
Net income	$	5,458	$	5,307	$	3,649		$	5,090		$	5,681		$	5,586	$	6,371		$	4,375
Net income attributable to common shares	$	5,431	$	5,281	$	3,630		$	5,063		$	5,654		$	5,558	$	6,339		$	4,352
Basic earnings per common share	$	0.40	$	0.39	$	0.27		$	0.41		$	0.46		$	0.45	$	0.52		$	0.36
Diluted earnings per common share	$	0.40	$	0.39	$	0.27		$	0.41		$	0.46		$	0.45	$	0.52		$	0.36

QUARTERLY CONDENSED, CONSOLIDATED

BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)

	As of:
	Dec. 31,		Sept. 30,		June 30,		March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
	2019		2019		2019		2019			2018			2018			2018			2018
ASSETS
Cash & Due from Banks	$	35,202	$	51,443	$	39,505	$	44,002		$	37,487		$	38,341		$	51,475		$	36,860
Available-for-Sale Debt Securities		346,723		363,467		363,465		357,646			363,273			358,706			348,044			341,133
Loans Held for Sale		767		2,033		1,131		0			213			551			177			225
Loans, Net		1,172,386		1,130,143		1,108,483		817,136			818,254			813,717			809,816			808,300
Intangible Assets		29,635		29,939		30,013		11,949			11,951			11,951			11,952			11,953
Other Assets		69,432		65,562		67,088		59,267			59,715			62,173			62,543			59,645
TOTAL ASSETS	$	1,654,145	$	1,642,587	$	1,609,685	$	1,290,000		$	1,290,893		$	1,285,439		$	1,284,007		$	1,258,116
LIABILITIES
Deposits	$	1,252,660	$	1,294,882	$	1,284,143	$	1,039,911		$	1,033,772		$	1,043,947		$	1,040,899		$	1,018,081
Repo Sweep Accounts		1,928		3,767		3,192		5,132			5,853			5,421			5,169			5,482
Total Deposits and Repo Sweeps		1,254,588		1,298,649		1,287,335		1,045,043			1,039,625			1,049,368			1,046,068			1,023,563
Borrowed Funds		136,419		75,714		62,574		32,844			42,915			35,985			39,054			39,122
Subordinated Debt		6,500		7,000		7,000		0			0			0			0			0
Other Liabilities		12,186		18,285		13,060		9,986			10,985			10,099			9,706			9,049
TOTAL LIABILITIES		1,409,693		1,399,648		1,369,969		1,087,873			1,093,525			1,095,452			1,094,828			1,071,734
SHAREHOLDERS' EQUITY
Common Shareholders' Equity, Excluding
Accumulated Other Comprehensive Income (Loss)		240,761		238,479		236,284		202,768			201,538			198,355			195,518			191,920
Accumulated Other Comprehensive Income (Loss):
Net Unrealized Gains (Losses) on
Available-for-sale Securities		3,511		4,173		3,138		(941	)		(4,307	)		(8,502	)		(6,476	)		(5,679	)
Defined Benefit Plans Adjustment, Net		180		287		294		300			137			134			137			141
TOTAL SHAREHOLDERS' EQUITY		244,452		242,939		239,716		202,127			197,368			189,987			189,179			186,382
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$	1,654,145	$	1,642,587	$	1,609,685	$	1,290,000		$	1,290,893		$	1,285,439		$	1,284,007		$	1,258,116

16

AVAILABLE-FOR-SALE DEBT SECURITIES	December 31, 2019				September 30, 2019				December 31, 2018
(In Thousands)	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of U.S. Government agencies	$	16,380	$	17,000	$	16,379	$	17,096	$	12,331	$	12,500
Obligations of states and political subdivisions:
Tax-exempt		68,787		70,760		71,317		73,281		84,204		83,952
Taxable		35,446		36,303		31,907		33,086		27,618		27,699
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:
Residential pass-through securities		58,875		59,210		62,051		62,245		54,827		53,445
Residential collateralized mortgage obligations		115,025		114,723		127,950		127,815		148,964		145,912
Commercial mortgage-backed securities		47,765		48,727		48,581		49,944		40,781		39,765
Total Available-for-Sale Debt Securities	$	342,278	$	346,723	$	358,185	$	363,467	$	368,725	$	363,273

Summary of Loans by Type
(Excludes Loans Held for Sale)
(In Thousands)	Dec. 31,			Sept. 30,			Dec. 31,
	2019			2019			2018
Residential mortgage:
Residential mortgage loans - first liens	$	510,641		$	487,425		$	372,339
Residential mortgage loans - junior liens		27,503			29,056			25,450
Home equity lines of credit		33,638			35,492			34,319
1-4 Family residential construction		14,798			32,699			24,698
Total residential mortgage		586,580			584,672			456,806
Commercial:
Commercial loans secured by real estate		301,227			297,519			162,611
Commercial and industrial		126,374			115,213			91,856
Political subdivisions		53,570			46,466			53,263
Commercial construction and land		33,555			22,386			11,962
Loans secured by farmland		12,251			7,103			7,146
Multi-family (5 or more) residential		31,070			27,633			7,180
Agricultural loans		4,319			5,145			5,659
Other commercial loans		16,535			12,828			13,950
Total commercial		578,901			534,293			353,627
Consumer		16,741			20,435			17,130
Total		1,182,222			1,139,400			827,563
Less: allowance for loan losses		(9,836	)		(9,257	)		(9,309	)
Loans, net	$	1,172,386		$	1,130,143		$	818,254

Loans Held for Sale
(In Thousands)	Dec. 31,			Sept. 30,			Dec. 31,
	2019			2019			2018
Residential mortgage loans originated and serviced - outstanding balance	$	179,213		$	179,594		$	171,955
Less: outstanding balance of loans sold		(178,446	)		(177,561	)		(171,742	)
Loans held for sale, net	$	767		$	2,033		$	213

17

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,
	2019			2019			2019			2018
Balance, beginning of period	$	9,257		$	8,200		$	9,309		$	8,856
Charge-offs		(84	)		(116	)		(379	)		(497	)
Recoveries		11			15			57			366
Net (charge-offs)		(73	)		(101	)		(322	)		(131	)
Provision for loan losses		652			1,158			849			584
Balance, end of period	$	9,836		$	9,257		$	9,836		$	9,309

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS (TDRs)
(Dollars In Thousands)
	Dec 31,			Sept. 30,			Dec 31,
	2019			2019			2018
Impaired loans with a valuation allowance	$	3,375		$	3,027		$	4,851
Impaired loans without a valuation allowance		2,111			2,916			4,923
Total impaired loans	$	5,486		$	5,943		$	9,774
Total loans past due 30-89 days and still accruing	$	8,889		$	5,230		$	7,142
Nonperforming assets:
Total nonaccrual loans	$	9,218		$	9,020		$	13,113
Total loans past due 90 days or more and still accruing		1,207			2,395			2,906
Total nonperforming loans		10,425			11,415			16,019
Foreclosed assets held for sale (real estate)		2,886			2,762			1,703
Total nonperforming assets	$	13,311		$	14,177		$	17,722
Loans subject to troubled debt restructurings (TDRs):
Performing	$	889		$	924		$	655
Nonperforming		1,737			1,744			2,884
Total TDRs	$	2,626		$	2,668		$	3,539
Total nonperforming loans as a % of loans		0.88	%		1.00	%		1.94	%
Total nonperforming assets as a % of assets		0.80	%		0.86	%		1.37	%
Allowance for loan losses as a % of total loans (1)		0.83	%		0.81	%		1.12	%
Allowance for loan losses as a % of nonperforming loans		94.35	%		81.10	%		58.11	%

(1) Effective April 1, 2019, C&N recorded loans purchased from Monument at fair value. Loans identified as having a deterioration in credit quality were valued at $441,000 at April 1, 2019 and December 31, 2019. The remainder of the portfolio was determined to be the performing component of the portfolio, valued at $258,854,000 at April 1, 2019. The calculation of fair value included a discount for credit losses of $1,914,000, reflecting an estimate of the present value of credit losses based on market expectations. None of the performing loans purchased were found to be impaired in the remainder of 2019; accordingly, there was no allowance for loan losses on loans purchased from Monument as reflected in the table above at December 31, 2019 or September 30, 2019.

18

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
	12/31/2019			Return/			9/30/2019			Return/			12/31/2018			Return/
	Average			Cost of			Average			Cost of			Average			Cost of
	Balance			Funds %			Balance			Funds %			Balance			Funds %
EARNING ASSETS
Interest-bearing due from banks	$	17,577			2.03	%	$	26,539			2.38	%	$	16,082			2.37	%
Available-for-sale debt securities,at amortized cost:
Taxable		280,333			2.29	%		285,114			2.41	%		282,708			2.56	%
Tax-exempt		69,482			3.01	%		69,472			3.34	%		91,371			3.68	%
Total available-for-sale debt securities		349,815			2.43	%		354,586			2.59	%		374,079			2.83	%
Loans receivable:
Taxable		1,100,170			5.28	%		1,062,578			5.38	%		751,793			5.35	%
Tax-exempt		66,195			3.81	%		67,741			3.74	%		74,672			3.78	%
Total loans receivable		1,166,365			5.20	%		1,130,319			5.28	%		826,465			5.21	%
Other earning assets		1,721			3.23	%		1,515			2.88	%		1,166			3.74	%
Total Earning Assets		1,535,478			4.53	%		1,512,959			4.60	%		1,217,792			4.44	%
Cash		19,983						22,341						17,101
Unrealized gain/loss on securities		5,056						4,915						(10,898	)
Allowance for loan losses		(9,469	)					(8,322	)					(8,986	)
Bank premises and equipment		16,801						16,103						14,735
Intangible assets		29,902						29,986						11,949
Other assets		53,124						48,276						44,159
Total Assets	$	1,650,875					$	1,626,258					$	1,285,852
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	221,052			0.44	%	$	232,549			0.62	%	$	216,757			0.51	%
Money market		202,217			0.52	%		200,873			0.52	%		177,461			0.40	%
Savings		169,342			0.16	%		170,583			0.15	%		155,687			0.10	%
Time deposits		379,446			1.81	%		385,538			1.82	%		225,995			0.99	%
Total interest-bearing deposits		972,057			0.94	%		989,543			0.99	%		775,900			0.54	%
Borrowed funds:
Short-term		54,705			2.03	%		25,823			2.24	%		12,499			1.46	%
Long-term		56,564			2.03	%		48,953			2.24	%		34,936			2.33	%
Subordinated debt		7,000			6.57	%		6,998			6.58	%		0			0.00	%
Total borrowed funds		118,269			2.30	%		81,774			2.62	%		47,435			2.10	%
Total Interest-bearing Liabilities		1,090,326			1.09	%		1,071,317			1.11	%		823,335			0.63	%
Demand deposits		299,090						300,183						261,118
Other liabilities		18,446						13,584						11,015
Total Liabilities		1,407,862						1,385,084						1,095,468
Stockholders' equity, excluding accumulated other comprehensive income/loss		238,738						237,000						198,861
Accumulated other comprehensive income/loss		4,275						4,174						(8,477	)
Total Shareholders' Equity		243,013						241,174						190,384
Total Liabilities and Shareholders' Equity	$	1,650,875					$	1,626,258					$	1,285,852
Interest Rate Spread					3.44	%					3.49	%					3.81	%
Net Interest Income/Earning Assets					3.75	%					3.81	%					4.01	%
Total Deposits (Interest-bearing and Demand)	$	1,271,147					$	1,289,726					$	1,037,018

(1) Annualized rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

(2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

(3) Rates of return on earning assets and costs of funds have been presented on an annualized basis.  

19

Analysis of Average Daily Balances and Rates
(Dollars in Thousands)
	Year						Year
	Ended			Rate of			Ended			Rate of
	12/31/2019			Return/			12/31/2018			Return/
	Average			Cost of			Average			Cost of
	Balance			Funds %			Balance			Funds %
EARNING ASSETS
Interest-bearing due from banks	$	21,711			2.37	%	$	21,800			1.90	%
Available-for-sale debt securities, at amortized cost:
Taxable		284,072			2.47	%		262,461			2.36	%
Tax-exempt		73,212			3.45	%		97,662			3.58	%
Total available-for-sale debt securities		357,284			2.67	%		360,123			2.69	%
Loans receivable:
Taxable		988,560			5.37	%		746,309			5.18	%
Tax-exempt		68,999			3.82	%		76,037			3.71	%
Total loans receivable		1,057,559			5.27	%		822,346			5.05	%
Other earning assets		1,439			3.13	%		1,160			3.10	%
Total Earning Assets		1,437,993			4.58	%		1,205,429			4.28	%
Cash		19,906						17,674
Unrealized gain/loss on securities		1,347						(8,343	)
Allowance for loan losses		(8,876	)					(9,033	)
Bank premises and equipment		15,914						15,156
Intangible assets		25,531						11,952
Other assets		48,654						43,305
Total Assets	$	1,540,469					$	1,276,140
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	217,910			0.53	%	$	217,638			0.44	%
Money market		194,849			0.49	%		180,835			0.30	%
Savings		167,677			0.15	%		152,889			0.10	%
Time deposits		344,446			1.69	%		227,060			0.90	%
Total interest-bearing deposits		924,882			0.89	%		778,422			0.48	%
Borrowed funds:
Short-term		33,521			2.19	%		25,226			1.45	%
Long-term		43,917			2.31	%		25,209			2.21	%
Subordinated debt		5,274			6.58	%		0			0.00	%
Total borrowed funds		82,712			2.53	%		50,435			1.83	%
Total Interest-bearing Liabilities		1,007,594			1.02	%		828,857			0.56	%
Demand deposits		288,805						249,409
Other liabilities		14,624						9,979
Total Liabilities		1,311,023						1,088,245
Stockholders' equity, excluding accumulated other comprehensive income/loss		228,103						194,333
Accumulated other comprehensive income/loss		1,343						(6,438	)
Total Shareholders' Equity		229,446						187,895
Total Liabilities and Shareholders' Equity	$	1,540,469					$	1,276,140
Interest Rate Spread					3.56	%					3.72	%
Net Interest Income/Earning Assets					3.86	%					3.90	%
Total Deposits (Interest-bearing and Demand)	$	1,213,687					$	1,027,831

(1) Rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21%.

(2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

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COMPARISON OF NONINTEREST INCOME
(In Thousands)	Three Months Ended							Years Ended
	Dec. 31,		Sept. 30,			Dec. 31,		Dec. 31,		Dec. 31,
	2019		2019			2018		2019		2018
Trust and financial management revenue	$	1,684	$	1,479		$	1,463	$	6,106	$	5,838
Brokerage revenue		265		333			300		1,266		1,018
Insurance commissions, fees and premiums		18		71			33		167		105
Service charges on deposit accounts		1,395		1,436			1,334		5,358		5,171
Service charges and fees		73		91			80		332		343
Interchange revenue from debit card transactions		690		722			666		2,754		2,546
Net gains from sales of loans		306		310			168		924		682
Loan servicing fees, net		91		(54	)		84		100		347
Increase in cash surrender value of life insurance		106		105			99		402		394
Other noninterest income		438		470			813		1,875		2,153
Total noninterest income, excluding realized gains (losses) on securities, net	$	5,066	$	4,963		$	5,040	$	19,284	$	18,597

COMPARISON OF NONINTEREST EXPENSE
(In Thousands)	Three Months Ended						Years Ended
	Dec. 31,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,
	2019		2019		2018		2019		2018
Salaries and wages	$	5,395	$	5,480	$	4,611	$	20,644	$	17,191
Pensions and other employee benefits		1,545		1,449		1,212		5,837		5,259
Occupancy expense, net		653		654		599		2,629		2,497
Furniture and equipment expense		322		333		295		1,289		1,196
Data processing expenses		836		802		748		3,403		2,750
Automated teller machine and interchange expense		340		297		316		1,103		1,304
Pennsylvania shares tax		345		341		320		1,380		1,318
Professional fees		274		242		116		1,069		976
Telecommunications		207		197		181		744		748
Directors' fees		187		162		157		673		706
Other noninterest expense		1,730		1,529		1,391		6,667		5,213
Total noninterest expense, excluding merger-related expenses		11,834		11,486		9,946		45,438		39,158
Merger-related expenses		281		206		128		4,099		328
Total noninterest expense	$	12,115	$	11,692	$	10,074	$	49,537	$	39,486

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