Citizens & Northern (CZNC) 8-K C&N Announces First Quarter 2011 Unaudited Financial Results

EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

AVAILABLE-FOR-SALE SECURITIES	March 31, 2011				December 31, 2010
(In Thousands)	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Obligations of other U.S. Government agencies		$36,963		$37,129		$44,005		$44,247
Obligations of states and political subdivisions:
Tax-exempt		127,107		121,789		127,210		119,874
Taxable		11,676		11,507		7,808		7,668
Mortgage-backed securities		99,220		103,627		113,176		118,386
Collateralized mortgage obligations,
Issued by U.S. Government agencies		152,718		153,558		131,040		130,826
Corporate bonds		1,000		1,019		1,000		1,027
Trust preferred securities issued by individual institutions		6,640		8,040		6,535		7,838
Collateralized debt obligations:
Pooled trust preferred securities - senior tranches		9,937		9,038		9,957		7,400
Other collateralized debt obligations		681		681		681		681
Total debt securities		445,942		446,388		441,412		437,947
Marketable equity securities		4,789		6,586		4,589		6,009
Total		$450,731		$452,974		$446,001		$443,956

Summary of Loans by Type
(Excludes Loans Held for Sale)
(In Thousands)	March 31,			December 31,
	2011			2010
Consumer mortgage:
Residential mortgage loans - first liens		$335,362			$333,012
Residential mortgage loans - junior liens		30,403			31,590
Home equity lines of credit		26,887			26,853
1-4 Family residential construction		7,666			14,379
Total consumer mortgage		400,318			405,834
Commercial:
Commercial loans secured by real estate		164,201			167,094
Commercial and industrial		57,494			59,005
Political subdivisions		36,226			36,480
Commercial construction		23,340			24,004
Loans secured by farmland		11,715			11,353
Multi-family (5 or more) residential		7,600			7,781
Agricultural loans		3,199			3,472
Other commercial loans		862			392
Total commercial		304,637			309,581
Consumer		14,004			14,996
Total		718,959			730,411
Less: allowance for loan losses		(8,846	)		(9,107	)
Loans, net		$710,113			$721,304

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES

(In Thousands)

	3 Months			3 Months			Year
	Ended			Ended			Ended
	March 31,			March 31,			December 31,
	2011			2010			2010
	(Unaudited)			(Unaudited)
Balance, beginning of year		$9,107			$8,265			$8,265
Charge-offs		(97	)		(181	)		(619	)
Recoveries		28			126			270
Net charge-offs		(69	)		(55	)		(349	)
(Credit) provision for loan losses		(192	)		207			1,191
Balance, end of period		$8,846			$8,417			$9,107

PAST DUE AND NONPERFORMING ASSETS

(In Thousands)

	Mar. 31,		Dec. 31,		Mar. 31,
	2011		2010		2010
Total loans past due 30-89 days and still accruing		$5,291		$7,125		$7,571
Nonperforming assets:
Total loans past due 90 days or more and still accruing		$453		$727		$530
Total nonaccrual loans		10,371		10,809		8,556
Foreclosed assets held for sale (real estate)		707		537		669
Total nonperforming assets		$11,531		$12,073		$9,755
Total nonperforming assets as a % of assets		0.88%		0.92%		0.72%

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
	3/31/2011			Return/			12/31/2010			Return/			3/31/2010			Return/
	Average			Cost of			Average			Cost of			Average			Cost of
	Balance			Funds %			Balance			Funds %			Balance			Funds %
EARNING ASSETS
Available-for-sale securities, at amortized cost:
Taxable		$327,104			3.42	%		$312,889			3.46	%		$306,966			4.18	%
Tax-exempt		126,973			6.08	%		120,990			6.06	%		107,857			6.56	%
Total available-for-sale securities		454,077			4.16	%		433,879			4.18	%		414,823			4.80	%
Held-to-maturity securities, Taxable		0			0.00	%		0			0.00	%		154			5.27	%
Trading securities		0			0.00	%		0			0.00	%		116			6.99	%
Interest-bearing due from banks		31,750			0.20	%		40,139			0.22	%		66,887			0.23	%
Federal funds sold		0			0.00	%		1			0.00	%		60			0.00	%
Loans:
Taxable		688,975			6.40	%		693,013			6.36	%		683,899			6.49	%
Tax-exempt		35,073			6.44	%		35,273			6.51	%		36,365			6.56	%
Total loans		724,048			6.40	%		728,286			6.37	%		720,264			6.50	%
Total Earning Assets		1,209,875			5.40	%		1,202,305			5.38	%		1,202,304			5.56	%
Cash		16,985						17,493						16,922
Unrealized gain/loss on securities		(588	)					4,694						(204	)
Allowance for loan losses		(9,201	)					(8,686	)					(8,410	)
Bank premises and equipment		22,474						22,923						24,164
Intangible Asset - Core Deposit Intangible		315						352						484
Intangible Asset - Goodwill		11,942						11,942						11,942
Other assets		60,758						62,350						79,191
Total Assets		$1,312,560						$1,313,373						$1,326,393
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking		$163,479			0.32	%		$164,011			0.40	%		$127,117			0.66	%
Money market		203,439			0.30	%		207,574			0.37	%		197,023			0.51	%
Savings		92,625			0.25	%		85,098			0.25	%		71,581			0.25	%
Certificates of deposit		212,133			1.99	%		217,005			2.05	%		236,951			2.44	%
Individual Retirement Accounts		161,174			2.99	%		162,908			3.01	%		161,127			3.10	%
Other time deposits		956			0.42	%		755			0.53	%		990			0.41	%
Total interest-bearing deposits		833,806			1.25	%		837,351			1.32	%		794,789			1.61	%
Borrowed funds:
Short-term		16,865			0.14	%		19,498			0.22	%		37,189			1.09	%
Long-term		145,802			4.01	%		150,635			4.01	%		196,142			4.14	%
Total borrowed funds		162,667			3.61	%		170,133			3.58	%		233,331			3.66	%
Total Interest-bearing Liabilities		996,473			1.63	%		1,007,484			1.70	%		1,028,120			2.07	%
Demand deposits		168,211						156,932						136,434
Other liabilities		6,461						7,495						7,465
Total Liabilities		1,171,145						1,171,911						1,172,019
Stockholders' equity, excluding other comprehensive income/loss		142,054						138,592						154,897
Other comprehensive income/loss		(639	)					2,870						(523	)
Total Stockholders' Equity		141,415						141,462						154,374
Total Liabilities and Stockholders' Equity		$1,312,560						$1,313,373						$1,326,393
Interest Rate Spread					3.77	%					3.68	%					3.49	%
Net Interest Income/Earning Assets					4.05	%					3.95	%					3.79	%
Total Deposits (Interest-bearing
and Demand)		$1,002,017						$994,283						$931,223
(1) Rates of return on tax-exempt securities and loans are presented on a fully taxable-equivalent basis.
(2) Nonaccrual loans have been included with loans for the purpose of analyzing net interest earnings.

COMPARISON OF NONINTEREST INCOME
(In Thousands)	Three Months Ended
	Mar. 31,			Dec. 31,		Mar. 31,
	2011			2010		2010
Service charges on deposit accounts		$1,131			$1,130		$1,093
Service charges and fees		218			264		193
Trust and financial management revenue		877			870		899
Brokerage revenue		123			147		109
Insurance commissions, fees and premiums		68			62		60
Increase in cash surrender value of life insurance		122			114		112
Interchange revenue from debit card transactions		452			452		375
Net gains from sales of loans		259			268		66
Net (loss) gain from other real estate		(19	)		5		(38	)
Net gain from sale of premises and equipment		0			0		448
Impairment loss on limited partnership investment		(948	)		0		0
Other operating income		272			168		231
Total other operating income, before realized
gains on available-for-sale securities, net		$2,555			$3,480		$3,548

COMPARISON OF NONINTEREST EXPENSE
(In Thousands)	Three Months Ended
	Mar. 31,		Dec. 31,		Mar. 31,
	2011		2010		2010
Salaries and wages		$3,401		$3,432		$3,078
Pensions and other employee benefits		1,306		938		939
Occupancy expense, net		732		641		699
Furniture and equipment expense		484		493		568
FDIC Assessments		325		249		404
Pennsylvania shares tax		319		306		305
Other operating expense		1,696		1,661		2,004
Total Other Expense		$8,263		$7,720		$7,997