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

EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

AVAILABLE-FOR-SALE SECURITIES	December 31, 2011				September 30, 2011				December 31, 2010
(In Thousands)	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of U.S. Government agencies	$	24,877	$	25,587	$	33,459	$	34,250	$	44,005	$	44,247
Obligations of states and political subdivisions:
Tax-exempt		129,401		132,962		130,537		132,545		127,210		119,874
Taxable		14,004		14,334		13,080		13,354		7,808		7,668
Mortgage-backed securities		116,602		121,769		116,314		121,967		113,176		118,386
Collateralized mortgage obligations,
Issued by U.S. Government agencies		161,818		165,131		143,275		146,002		131,040		130,826
Corporate bonds		0		0		1,000		1,001		1,000		1,027
Trust preferred securities issued by individual institutions		7,334		8,146		7,015		8,181		6,535		7,838
Collateralized debt obligations:
Pooled trust preferred securities - senior tranches		4,996		4,638		7,914		7,103		9,957		7,400
Pooled trust preferred securities - mezzanine tranches		0		730		0		0		0		0
Other collateralized debt obligations		660		660		660		660		681		681
Total debt securities		459,692		473,957		453,254		465,063		441,412		437,947
Marketable equity securities		5,643		7,728		5,548		7,050		4,589		6,009
Total	$	465,335	$	481,685	$	458,802	$	472,113	$	446,001	$	443,956

Summary of Loans by Type
(Excludes Loans Held for Sale)
(In Thousands)	Dec. 31,			Sept. 30,			Dec. 31,
	2011			2011			2010
Consumer mortgage:
Residential mortgage loans - first liens	$	331,015		$	334,551		$	333,012
Residential mortgage loans - junior liens		28,851			29,748			31,590
Home equity lines of credit		30,037			29,667			26,853
1-4 Family residential construction		9,959			9,762			14,379
Total consumer mortgage		399,862			403,728			405,834
Commercial:
Commercial loans secured by real estate		156,388			149,853			167,094
Commercial and industrial		57,191			55,792			59,005
Political subdivisions		37,620			36,403			36,480
Commercial construction and land		23,518			26,552			24,004
Loans secured by farmland		10,949			10,470			11,353
Multi-family (5 or more) residential		6,583			6,782			7,781
Agricultural loans		2,987			2,819			3,472
Other commercial loans		552			561			392
Total commercial		295,788			289,232			309,581
Consumer		12,665			12,919			14,996
Total		708,315			705,879			730,411
Less: allowance for loan losses		(7,705	)		(8,177	)		(9,107	)
Loans, net	$	700,610		$	697,702		$	721,304

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,
	2011			2011			2011			2010
Balance, beginning of period	$	8,177		$	8,269		$	9,107		$	8,265
Charge-offs		(479	)		(70	)		(1,446	)		(619	)
Recoveries		94			15			329			270
Net charge-offs		(385	)		(55	)		(1,117	)		(349	)
(Credit) provision for loan losses		(87	)		(37	)		(285	)		1,191
Balance, end of period	$	7,705		$	8,177		$	7,705		$	9,107

PAST DUE AND NONPERFORMING ASSETS
(In Thousands)
	Dec. 31,			Sept. 30,			Dec. 31,
	2011			2011			2010
Total loans past due 30-89 days and still
accruing	$	7,898		$	5,142		$	7,125
Nonperforming assets:
Total loans past due 90 days or more and
still accruing	$	1,267		$	1,055		$	727
Total nonaccrual loans		7,197			7,890			10,809
Foreclosed assets held for sale (real estate)		1,235			1,596			537
Total nonperforming assets	$	9,699		$	10,541		$	12,073
Total nonperforming assets as a % of assets		0.73	%		0.80	%		0.92	%

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
	12/31/2011			Return/			9/30/2011			Return/			12/31/2010			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	$	337,405			3.27	%	$	333,848			3.38	%	$	312,889			3.46	%
Tax-exempt		130,819			5.87	%		127,974			5.94	%		120,990			6.06	%
Total available-for-sale securities		468,224			4.00	%		461,822			4.09	%		433,879			4.18	%
Interest-bearing due from banks		36,404			0.31	%		27,884			0.18	%		40,139			0.22	%
Federal funds sold		0			0.00	%		0			0.00	%		1			0.00	%
Loans:
Taxable		670,708			6.34	%		679,875			6.30	%		693,013			6.36	%
Tax-exempt		35,744			6.29	%		34,630			6.37	%		35,273			6.51	%
Total loans		706,452			6.33	%		714,505			6.31	%		728,286			6.37	%
Total Earning Assets		1,211,080			5.25	%		1,204,211			5.31	%		1,202,305			5.38	%
Cash		17,812						18,601						17,493
Unrealized gain/loss on securities		12,710						10,312						4,694
Allowance for loan losses		(8,255	)					(8,372	)					(8,686	)
Bank premises and equipment		19,286						21,682						22,923
Intangible Asset - Core Deposit Intangible		230						256						352
Intangible Asset - Goodwill		11,942						11,942						11,942
Other assets		50,743						52,637						62,350
Total Assets	$	1,315,548					$	1,311,269					$	1,313,373
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	161,274			0.15	%	$	158,849			0.22	%	$	164,011			0.40	%
Money market		208,855			0.18	%		206,826			0.20	%		207,574			0.37	%
Savings		101,405			0.10	%		98,434			0.13	%		85,098			0.25	%
Certificates of deposit		195,774			1.81	%		207,822			1.85	%		217,005			2.05	%
Individual Retirement Accounts		149,219			1.12	%		151,910			1.51	%		162,908			3.01	%
Other time deposits		801			0.50	%		1,813			0.00	%		755			0.53	%
Total interest-bearing deposits		817,328			0.73	%		825,654			0.85	%		837,351			1.32	%
Borrowed funds:
Short-term		12,673			0.09	%		19,935			0.12	%		19,498			0.22	%
Long-term		127,692			4.04	%		130,980			4.02	%		150,635			4.01	%
Total borrowed funds		140,365			3.68	%		150,915			3.50	%		170,133			3.58	%
Total Interest-bearing Liabilities		957,693			1.16	%		976,569			1.26	%		1,007,484			1.70	%
Demand deposits		186,562						170,111						156,932
Other liabilities		8,721						7,761						7,495
Total Liabilities		1,152,976						1,154,441						1,171,911
Stockholders' equity, excluding
other comprehensive income/loss		154,484						150,332						138,592
Other comprehensive income/loss		8,088						6,496						2,870
Total Stockholders' Equity		162,572						156,828						141,462
Total Liabilities and Stockholders' Equity	$	1,315,548					$	1,311,269					$	1,313,373
Interest Rate Spread					4.09	%					4.05	%					3.68	%
Net Interest Income/Earning Assets					4.33	%					4.29	%					3.95	%
Total Deposits (Interest-bearing
and Demand)	$	1,003,890					$	995,765					$	994,283

(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.

Analysis of Average Daily Balances and Rates
(Dollars in Thousands)
	Year						Year
	Ended			Rate of			Ended			Rate of
	12/31/2011			Return/			12/31/2010			Return/
	Average			Cost of			Average			Cost of
	Balance			Funds %			Balance			Funds %
EARNING ASSETS
Available-for-sale securities,
at amortized cost:
Taxable	$	333,441			3.39	%	$	314,462			3.61	%
Tax-exempt		128,463			5.98	%		113,058			6.33	%
Total available-for-sale securities		461,904			4.11	%		427,520			4.33	%
Held-to-maturity securities,
Taxable		0			0.00	%		38			5.27	%
Trading securities		0			0.00	%		29			6.99	%
Interest-bearing due from banks		31,359			0.23	%		54,655			0.23	%
Federal funds sold		0			0.00	%		48			0.00	%
Loans:
Taxable		680,257			6.36	%		687,520			6.43	%
Tax-exempt		35,064			6.37	%		35,798			6.55	%
Total loans		715,321			6.36	%		723,318			6.44	%
Total Earning Assets		1,208,584			5.34	%		1,205,608			5.41	%
Cash		17,762						17,505
Unrealized gain/loss on securities		7,105						2,555
Allowance for loan losses		(8,688	)					(8,552	)
Bank premises and equipment		21,381						23,522
Intangible Asset - Core Deposit Intangible		272						417
Intangible Asset - Goodwill		11,942						11,942
Other assets		55,087						73,148
Total Assets	$	1,313,445					$	1,326,145
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	162,583			0.25	%	$	147,494			0.54	%
Money market		206,612			0.24	%		203,191			0.43	%
Savings		97,099			0.17	%		78,012			0.25	%
Certificates of deposit		205,231			1.90	%		225,542			2.24	%
Individual Retirement Accounts		154,688			2.04	%		162,754			3.06	%
Other time deposits		1,231			0.24	%		1,242			0.48	%
Total interest-bearing deposits		827,444			0.98	%		818,235			1.46	%
Borrowed funds:
Short-term		17,216			0.13	%		27,563			0.64	%
Long-term		134,894			4.02	%		175,229			4.09	%
Total borrowed funds		152,110			3.58	%		202,792			3.62	%
Total Interest-bearing Liabilities		979,554			1.38	%		1,021,027			1.88	%
Demand deposits		173,681						147,380
Other liabilities		7,492						7,605
Total Liabilities		1,160,727						1,176,012
Stockholders' equity, excluding
other comprehensive income/loss		148,324						148,735
Other comprehensive income/loss		4,394						1,398
Total Stockholders' Equity		152,718						150,133
Total Liabilities and Stockholders' Equity	$	1,313,445					$	1,326,145
Interest Rate Spread					3.96	%					3.53	%
Net Interest Income/Earning Assets					4.22	%					3.81	%
Total Deposits (Interest-bearing
and Demand)	$	1,001,125					$	965,615

(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							Year Ended
	Dec. 31,		Sept. 30,		Dec. 31,			Dec. 31,			Dec. 31,
	2011		2011		2010			2011			2010
Service charges on deposit accounts	$	1,187	$	1,230	$	1,130		$	4,773		$	4,579
Service charges and fees		206		218		264			849			858
Trust and financial management revenue		864		785		870			3,472			3,475
Brokerage revenue		89		199		147			640			465
Insurance commissions, fees and premiums		65		66		62			257			248
Interchange revenue from debit card transactions		495		490		452			1,922			1,678
Net gains from sales of loans		430		263		283			1,107			761
Increase in cash surrender value of life insurance		127		127		114			508			466
Net gain from sale of premises and equipment		0		324		0			324			445
Net gain (loss) from other real estate		33		51		(5	)		41			108
Impairment loss on limited partnership investment		0		0		0			(948	)		0
Other operating income		215		246		151			993			755
Total other operating income, before realized
gains on available-for-sale securities, net	$	3,711	$	3,999	$	3,468		$	13,938		$	13,838
COMPARISON OF NONINTEREST EXPENSE
(In Thousands)	Three Months Ended							Year Ended
	Dec. 31,		Sept. 30,		Dec. 31,			Dec. 31,			Dec. 31,
		2011		2011		2010			2011			2010
Salaries and wages	$	3,545	$	3,451	$	3,432		$	13,866		$	13,063
Pensions and other employee benefits		1,063		1,020		938			4,407			3,840
Occupancy expense, net		600		641		641			2,638			2,645
Furniture and equipment expense		497		498		493			1,932			2,103
FDIC Assessments		144		174		249			832			1,450
Pennsylvania shares tax		322		345		306			1,306			1,222
Other operating expense		1,777		1,923		1,649			7,076			7,167
Total Noninterest Expense	$	7,948	$	8,052	$	7,708		$	32,057		$	31,490