Citizens & Northern (CZNC) 8-K C&N Announces SECOND QUARTER 2013 UNAUDITED Financial RESULTS

EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

AVAILABLE-FOR-SALE SECURITIES	June 30, 2013				March 31, 2013				December 31, 2012
(In Thousands)	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of U.S. Government agencies	$	49,016	$	47,970	$	35,802	$	36,246	$	30,695	$	31,217
Obligations of states and political subdivisions:
Tax-exempt		132,525		134,483		132,917		138,910		130,168		137,020
Taxable		29,976		29,689		27,215		27,595		24,426		24,817
Mortgage-backed securities		63,776		65,625		64,505		67,666		76,368		80,196
Collateralized mortgage obligations,
Issued by U.S. Government agencies		183,792		182,924		172,222		173,918		179,770		183,510
Trust preferred securities issued by individual institutions		0		0		5,160		5,163		5,167		5,171
Collateralized debt obligations:
Pooled trust preferred securities - senior tranches		0		0		1,614		1,659		1,615		1,613
Other collateralized debt obligations		660		660		660		660		660		660
Total debt securities		459,745		461,351		440,095		451,817		448,869		464,204
Marketable equity securities		5,965		8,717		5,570		8,038		5,912		8,373
Total	$	465,710	$	470,068	$	445,665	$	459,855	$	454,781	$	472,577

Summary of Loans by Type
(Excludes Loans Held for Sale)
(In Thousands)	June 30,			Mar. 31,			Dec. 31,			June 30,
	2013			2013			2012			2012
Residential mortgage:
Residential mortgage loans - first liens	$	304,806		$	306,754		$	311,627		$	321,163
Residential mortgage loans - junior liens		24,797			25,567			26,748			27,404
Home equity lines of credit		33,076			32,237			33,017			31,858
1-4 Family residential construction		14,895			12,032			12,842			10,699
Total residential mortgage		377,574			376,590			384,234			391,124
Commercial:
Commercial loans secured by real estate		155,168			155,474			158,413			164,771
Commercial and industrial		45,812			47,031			48,442			52,704
Political subdivisions		24,033			27,366			31,789			36,858
Commercial construction and land		20,189			28,461			28,200			26,517
Loans secured by farmland		11,134			11,214			11,403			10,079
Multi-family (5 or more) residential		6,397			6,478			6,745			6,409
Agricultural loans		3,061			2,864			3,053			3,263
Other commercial loans		543			238			362			563
Total commercial		266,337			279,126			288,407			301,164
Consumer		11,059			11,030			11,269			12,146
Total		654,970			666,746			683,910			704,434
Less: allowance for loan losses		(7,198	)		(7,118	)		(6,857	)		(7,657	)
Loans, net	$	647,772		$	659,628		$	677,053		$	696,777

Loans Held for Sale
(In Thousands)	June 30,			Mar. 31,			Dec 31,			June 30,
	2013			2013			2012			2012
Residential mortgage loans originated
and serviced - outstanding balance	$	127,214		$	114,933		$	103,176		$	74,070
Less: outstanding balance of loans sold		(126,489	)		(114,134	)		(100,631	)		(70,880	)
Loans held for sale, net	$	725		$	799		$	2,545		$	3,190

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
(In Thousands)
	3 Months			3 Months			6 Months			6 Months
	Ended			Ended			Ended			Ended
	June 30,			Mar. 31,			June 30,			June 30,
	2013			2013			2013			2012
Balance, beginning of period	$	7,118		$	6,857		$	6,857		$	7,705
Charge-offs		(52	)		(193	)		(245	)		(291	)
Recoveries		66			271			337			58
Net recoveries (charge-offs)		14			78			92			(233	)
Provision for loan losses		66			183			249			185
Balance, end of period	$	7,198		$	7,118		$	7,198		$	7,657

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS
AND TROUBLED DEBT RESTRUCTURINGS (TDRs)
(In Thousands)
	June 30,			Mar. 31,			Dec 31,			June 30,
	2013			2013			2012			2012
Impaired loans with a valuation allowance	$	1,874		$	2,722		$	2,710		$	3,434
Impaired loans without a valuation allowance		5,097			4,751			4,719			3,427
Total impaired loans	$	6,971		$	7,473		$	7,429		$	6,861
Total loans past due 30-89 days and still accruing	$	6,114		$	6,366		$	7,756		$	5,191
Nonperforming assets:
Total nonaccrual loans	$	6,697		$	7,090		$	7,353		$	7,447
Total loans past due 90 days or more and still accruing		2,202			2,351			2,311			1,144
Total nonperforming loans		8,899			9,441			9,664			8,591
Foreclosed assets held for sale (real estate)		890			915			879			904
Total nonperforming assets	$	9,789		$	10,356		$	10,543		$	9,495
Loans subject to troubled debt restructurings (TDRs):
Performing	$	2,187		$	829		$	906		$	925
Nonperforming		1,154			1,338			1,155			1,754
Total TDRs	$	3,341		$	2,167		$	2,061		$	2,679
Total nonperforming loans as a % of loans		1.36	%		1.42	%		1.41	%		1.22	%
Total nonperforming assets as a % of assets		0.80	%		0.83	%		0.82	%		0.72	%
Allowance for loan losses as a % of total loans		1.10	%		1.07	%		1.00	%		1.09	%
Allowance for loan losses as a % of nonperforming loans		80.89	%		75.39	%		70.95	%		89.13	%

Analysis of Average Daily Balances and Rates
(Dollars in Thousands)
	3 Months			Rate of			3 Months			Rate of			3 Months			Rate of
	Ended			Return/			Ended			Return/			Ended			Return/
	6/30/2013			Cost of			3/31/2013			Cost of			6/30/2012			Cost of
	Average			Funds			Average			Funds			Average			Funds
	Balance			%			Balance			%			Balance			%
EARNING ASSETS
Available-for-sale securities,
at amortized cost:
Taxable	$	323,248			2.14	%	$	315,612			2.31	%	$	333,255			3.13	%
Tax-exempt		132,198			5.76	%		130,123			5.75	%		130,111			5.94	%
Total available-for-sale securities		455,446			3.19	%		445,735			3.32	%		463,366			3.92	%
Interest-bearing due from banks		23,044			0.40	%		29,638			0.38	%		37,300			0.33	%
Federal funds sold		3			0.00	%		15			0.00	%		0			0.00	%
Loans held for sale		787			6.12	%		2,193			3.88	%		1,865			4.96	%
Loans receivable:
Taxable		625,215			5.79	%		636,278			5.88	%		666,752			6.18	%
Tax-exempt		33,690			5.88	%		38,491			5.81	%		36,344			6.31	%
Total loans receivable		658,905			5.80	%		674,769			5.88	%		703,096			6.18	%
Total Earning Assets		1,138,185			4.64	%		1,152,350			4.74	%		1,205,627			5.13	%
Cash		16,961						16,080						17,791
Unrealized gain/loss on securities		13,820						16,270						17,545
Allowance for loan losses		(7,229	)					(7,126	)					(7,435	)
Bank premises and equipment		18,351						18,655						18,908
Intangible Asset - Core Deposit Intangible		120						132						186
Intangible Asset - Goodwill		11,942						11,942						11,942
Other assets		43,127						43,376						47,046
Total Assets	$	1,235,277					$	1,251,679					$	1,311,610
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	167,404			0.12	%	$	174,149			0.12	%	$	156,994			0.13	%
Money market		204,444			0.15	%		202,129			0.14	%		210,646			0.19	%
Savings		117,224			0.10	%		116,538			0.10	%		107,514			0.10	%
Certificates of deposit		150,358			1.00	%		160,011			1.17	%		199,320			1.55	%
Individual Retirement Accounts		130,368			0.44	%		134,076			0.50	%		144,095			0.91	%
Other time deposits		1,161			0.00	%		845			0.00	%		1,314			0.31	%
Total interest-bearing deposits		770,959			0.35	%		787,748			0.40	%		819,883			0.62	%
Borrowed funds:
Short-term		5,684			0.14	%		4,220			0.10	%		5,650			0.07	%
Long-term		73,615			4.03	%		83,341			4.00	%		113,301			4.01	%
Total borrowed funds		79,299			3.75	%		87,561			3.81	%		118,951			3.82	%
Total Interest-bearing Liabilities		850,258			0.67	%		875,309			0.74	%		938,834			1.03	%
Demand deposits		193,115						184,890						191,349
Other liabilities		8,292						8,875						7,774
Total Liabilities		1,051,665						1,069,074						1,137,957
Stockholders' equity, excluding
other comprehensive income/loss		174,782						172,578						162,721
Other comprehensive income/loss		8,830						10,027						10,932
Total Stockholders' Equity		183,612						182,605						173,653
Total Liabilities and Stockholders' Equity	$	1,235,277					$	1,251,679					$	1,311,610
Interest Rate Spread					3.97	%					4.00	%					4.10	%
Net Interest Income/Earning Assets					4.15	%					4.18	%					4.33	%
Total Deposits (Interest-bearing
and Demand)	$	964,074					$	972,638					$	1,011,232

(1) Changes in income on tax-exempt securities and loans are presented on a fully tax-equivalent basis, using the Corporation’s marginal federal income tax rate of 35%.

(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)
	6 Months						6 Months
	Ended			Rate of			Ended			Rate of
	6/30/2013			Return/			6/30/2012			Return/
	Average			Cost of			Average			Cost of
	Balance			Funds %			Balance			Funds %
EARNING ASSETS
Available-for-sale securities,
at amortized cost:
Taxable	$	319,451			2.23	%	$	332,131			3.22	%
Tax-exempt		131,166			5.75	%		128,920			5.99	%
Total available-for-sale securities		450,617			3.25	%		461,051			4.00	%
Interest-bearing due from banks		26,323			0.39	%		35,817			0.33	%
Federal funds sold		9			0.00	%		0			0.00	%
Loans held for sale		1,486			4.48	%		1,461			4.40	%
Loans receivable:
Taxable		630,716			5.84	%		666,344			6.22	%
Tax-exempt		36,077			5.84	%		36,281			6.34	%
Total loans receivable		666,793			5.84	%		702,625			6.23	%
Total Earning Assets		1,145,228			4.69	%		1,200,954			5.19	%
Cash		16,523						17,341
Unrealized gain/loss on securities		15,038						17,734
Allowance for loan losses		(7,178	)					(7,587	)
Bank premises and equipment		18,502						18,903
Intangible Asset - Core Deposit Intangible		126						195
Intangible Asset - Goodwill		11,942						11,942
Other assets		43,252						47,664
Total Assets	$	1,243,433					$	1,307,146
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	170,758			0.12	%	$	159,259			0.13	%
Money market		203,293			0.14	%		208,256			0.19	%
Savings		116,883			0.10	%		106,023			0.10	%
Certificates of deposit		155,158			1.09	%		195,622			1.64	%
Individual Retirement Accounts		132,212			0.47	%		145,168			0.94	%
Other time deposits		1,004			0.00	%		1,128			0.18	%
Total interest-bearing deposits		779,308			0.38	%		815,456			0.65	%
Borrowed funds:
Short-term		4,956			0.12	%		6,536			0.12	%
Long-term		78,451			4.01	%		114,454			4.00	%
Total borrowed funds		83,407			3.78	%		120,990			3.79	%
Total Interest-bearing Liabilities		862,715			0.70	%		936,446			1.05	%
Demand deposits		189,025						190,312
Other liabilities		8,582						8,613
Total Liabilities		1,060,322						1,135,371
Stockholders' equity, excluding
other comprehensive income/loss		173,686						160,761
Other comprehensive income/loss		9,425						11,014
Total Stockholders' Equity		183,111						171,775
Total Liabilities and Stockholders' Equity	$	1,243,433					$	1,307,146
Interest Rate Spread					3.99	%					4.14	%
Net Interest Income/Earning Assets					4.16	%					4.37	%
Total Deposits (Interest-bearing
and Demand)	$	968,333					$	1,005,768

(1) Changes in income on tax-exempt securities and loans are presented on a fully tax-equivalent basis, using theCorporation’s marginal federal income tax rate of 35%.

(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						Six Months Ended
	June 30,		Mar. 31,		June 30,		June 30,		June 30,
	2013		2013		2012		2013		2012
Service charges on deposit accounts	$	1,171	$	1,159	$	1,256	$	2,330	$	2,417
Service charges and fees		216		201		235		417		455
Trust and financial management revenue		1,045		944		960		1,989		1,889
Brokerage revenue		237		144		288		381		456
Insurance commissions, fees and premiums		59		45		73		104		107
Interchange revenue from debit card transactions		505		464		488		969		983
Net gains from sales of loans		587		545		373		1,132		638
Increase in cash surrender value of life insurance		99		93		117		192		236
Net gain from premises and equipment		0		0		270		0		270
Other operating income		272		248		219		520		483
Total other operating income, before realized
gains on available-for-sale securities, net	$	4,191	$	3,843	$	4,279	$	8,034	$	7,934

COMPARISON OF NONINTEREST EXPENSE
(In Thousands)	Three Months Ended						Six Months Ended
	June 30,		Mar. 31,		June 30,		June 30,		June 30,
	2013		2013		2012		2013		2012
Salaries and wages	$	3,635	$	3,600	$	3,586	$	7,235	$	7,161
Pensions and other employee benefits		1,034		1,255		1,090		2,289		2,456
Occupancy expense, net		599		634		628		1,233		1,264
Furniture and equipment expense		483		494		461		977		943
FDIC Assessments		147		152		157		299		303
Pennsylvania shares tax		351		350		340		701		672
Other operating expense		2,271		2,068		2,059		4,339		3,935
Total noninterest expense, before loss on
prepayment of borrowings		8,520		8,553		8,321		17,073		16,734
Loss on prepayment of borrowings		0		1,023		143		1,023		143
Total Noninterest expense	$	8,520	$	9,576	$	8,464	$	18,096	$	16,877