June 30, 2011 QUARTERLY REPORT
Dear Shareholder:
I am pleased to report net income of $5.7 million for the second quarter of 2011 which is a $.8 million increase over the second quarter of 2010, or an increase of 17.36%. 2011 year-to-date earnings of $11.2 million are an increase of $1.9 million over the first half of 2010, or an increase of 20.75%. Return on average assets (ROA) was 1.71% and return on average equity (ROE) was 15.43% for the first half of 2011. Our financial results place Citizens & Northern Corporation in the top echelon of our peer group. Our strong performance has been the result of a substantially improved net interest margin, strong asset quality and firm management of overhead expenses.
As reported in previous quarters, total assets remain relatively unchanged as we continue to de-leverage the balance sheet due to low investment yield opportunities. Non-performing assets to total assets remain relatively modest at .75%, which is very good by industry standards. You will note that the provision for loan losses was a credit for the first half of 2011. The favorable loan loss results in the first half of 2011 reflect our low levels of delinquencies and other loan-related credit problems, as compared to averages for comparable-sized peer banks.
We are proud of our first half results in light of a weak national economy and the uncertainty that surrounds our industry as we await the writing of the final rules that were part of the Dodd-Frank Wall Street Reform and Customer Protection Act.
Over the past eighteen months C&N has experienced a significant financial recovery. This has been the result of a committed employee workforce that is driven to make C&N a premier financial institution. We solicit your continued support and welcome your questions and comments.
Charles H. Updegraff, Jr.
Chairman, President, & CEO
CITIZENS & NORTHERN CORPORATION
BOARD OF DIRECTORS
Charles H. Updegraff, Jr. - Chairman
| Dennis F. Beardslee | Raymond R. Mattie |
| Jan E. Fisher | Edward H. Owlett, III |
| R. Bruce Haner | Leonard Simpson |
| Susan E. Hartley | James E. Towner |
| Leo F. Lambert | Ann M. Tyler |
| Edward L. Learn | |
DIRECTORS EMERITI
CITIZENS & NORTHERN BANK
428 S. Main Street, ATHENS, PA 18810
3 Main Street, CANISTEO, NY 14823
10 N Main Street, COUDERSPORT, PA 16915
111 Main Street, DUSHORE, PA 18614
563 Main Street, EAST SMITHFIELD, PA 18817
104 Main Street, ELKLAND, PA 16920
135 East Fourth Street, EMPORIUM, PA 15834
6250 County Route 64, HORNELL, NY 14843
230-232 Railroad Street, JERSEY SHORE, PA 17740
102 E. Main Street, KNOXVILLE, PA 16928
514 Main Street, LAPORTE, PA 18626
4534 Williamson Trail LIBERTY, PA 16930
1085 S. Main Street, MANSFIELD, PA 16933
612 James Monroe Avenue, MONROETON, PA 18832
3461 Rte.405 Highway, MUNCY, PA 17756
100 Maple Street, PORT ALLEGANY, PA 16743
24 Thompson Street, RALSTON, PA 17763
1827 Elmira Street, SAYRE, PA 18840
2 E. Mountain Ave., SO. WILLIAMSPORT, PA 17702
41 Main Street, TIOGA, PA 16946
428 Main Street, TOWANDA, PA18848
Court House Square, TROY, PA 16947
90-92 Main Street, WELLSBORO, PA 16901
130 Court Street, WILLIAMSPORT, PA 17701
1510 Dewey Ave., WILLIAMSPORT, PA 17702
TRUST & FINANCIAL MANAGEMENT GROUP
3 Main Street, Canisteo, NY 14823 | 607-698-4295 |
10 N Main Street, Coudersport, PA 16915 | 800-921-9150 |
1827 Elmira Street, Sayre, PA 18840 | 888-760-8192 |
428 Main Street, Towanda, PA 18848 | 888-987-8784 |
90-92 Main Street, Wellsboro, PA 16901 | 888-487-8784 |
130 Court Street, Williamsport, PA 17701 | 866-732-7213 |
ACCOUNT SERVICES - 90-92 Main St., Wellsboro, PA 16901 | |
BANKCARD SERVICES - 90-92 Main St., Wellsboro PA 16901 | 800-577-8001 |
ELECTRONIC BANKING – 10 Nichols St., Wellsboro, PA 16901 | 877-838-2517 |
| www.cnbankpa.com | |
| | |
C&N FINANCIAL SERVICES CORPORATION – 90-92 Main Street, Wellsboro, PA | 866-ASK-CNFS |
| www.cnfinancialservices.com | |
