Citizens & Northern (CZNC) 8-K C&N Announces FOURTH QUARTER AND ANNUAL 2014 UNAUDITED Financial RESULTS

EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

AVAILABLE-FOR-SALE SECURITIES	December 31, 2014				September 30, 2014				December 31, 2013
(In Thousands)	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of U.S. Government agencies	$	27,221	$	26,676	$	27,237	$	26,416	$	47,382	$	45,877
Obligations of states and political subdivisions:
Tax-exempt		120,086		124,839		123,336		128,292		127,748		128,426
Taxable		33,637		33,878		34,136		34,203		35,154		34,471
Mortgage-backed securities		82,479		83,903		74,278		75,513		84,849		86,208
Collateralized mortgage obligations, Issued by U.S. Government agencies		239,620		238,823		236,940		234,816		182,372		178,092
Other collateralized debt obligations		34		34		660		660		660		660
Total debt securities		503,077		508,153		496,587		499,900		478,165		473,734
Marketable equity securities		5,605		8,654		5,605		8,353		6,038		8,924
Total	$	508,682	$	516,807	$	502,192	$	508,253	$	484,203	$	482,658

Summary of Loans by Type

(Excludes Loans Held for Sale)

(In Thousands)	Dec. 31,			Sept. 30,			Dec. 31,
	2014			2014			2013
Residential mortgage:
Residential mortgage loans - first liens	$	291,882		$	290,943		$	299,831
Residential mortgage loans - junior liens		21,166			21,843			23,040
Home equity lines of credit		36,629			35,975			34,530
1-4 Family residential construction		16,739			16,895			13,909
Total residential mortgage		366,416			365,656			371,310
Commercial:
Commercial loans secured by real estate		145,878			144,410			147,215
Commercial and industrial		50,157			50,615			42,387
Political subdivisions		17,534			14,823			16,291
Commercial construction and land		6,938			9,069			17,003
Loans secured by farmland		7,916			8,542			10,468
Multi-family (5 or more) residential		8,917			9,092			10,985
Agricultural loans		3,221			3,284			3,251
Other commercial loans		13,334			13,620			14,631
Total commercial		253,895			253,455			262,231
Consumer		10,234			10,298			10,762
Total		630,545			629,409			644,303
Less: allowance for loan losses		(7,336	)		(7,449	)		(8,663	)
Loans, net	$	623,209		$	621,960		$	635,640

Loans Held for Sale
(In Thousands)	Dec. 31,			Sept. 30,			Dec. 31,
	2014			2014			2013
Residential mortgage loans originated and serviced - outstanding balance	$	152,505		$	151,113		$	146,008
Less: outstanding balance of loans sold		(152,505	)		(150,695	)		(145,954	)
Loans held for sale, net	$	0		$	418		$	54

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,
	2014			2014			2014			2013
Balance, beginning of period	$	7,449		$	7,267		$	8,663		$	6,857
Charge-offs		(258	)		(61	)		(2,139	)		(671	)
Recoveries		22			25			336			430
Net charge-offs		(236	)		(36	)		(1,803	)		(241	)
Provision for loan losses		123			218			476			2,047
Balance, end of period	$	7,336		$	7,449		$	7,336		$	8,663

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS
AND TROUBLED DEBT RESTRUCTURINGS (TDRs)
(In Thousands)
	Dec 31,			Sept. 30,			Dec 31,
	2014			2014			2013
Impaired loans with a valuation allowance	$	3,241		$	4,059		$	9,889
Impaired loans without a valuation allowance		9,075			10,035			6,432
Total impaired loans	$	12,316		$	14,094		$	16,321
Total loans past due 30-89 days and still accruing	$	7,121		$	5,458		$	8,305
Nonperforming assets:
Total nonaccrual loans	$	12,610		$	13,722		$	14,934
Total loans past due 90 days or more and still accruing		2,843			2,602			3,131
Total nonperforming loans		15,453			16,324			18,065
Foreclosed assets held for sale (real estate)		1,189			1,888			892
Total nonperforming assets	$	16,642		$	18,212		$	18,957
Loans subject to troubled debt restructurings (TDRs):
Performing	$	1,807		$	1,834		$	3,267
Nonperforming		5,388			6,172			908
Total TDRs	$	7,195		$	8,006		$	4,175
Total nonperforming loans as a % of loans		2.45	%		2.59	%		2.80	%
Total nonperforming assets as a % of assets		1.34	%		1.45	%		1.53	%
Allowance for loan losses as a % of total loans		1.16	%		1.18	%		1.34	%
Allowance for loan losses as a % of nonperforming loans		47.47	%		45.63	%		47.95	%

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
	12/31/2014			Return/			9/30/2014			Return/			12/31/2013			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	$	383,802			2.10	%	$	381,833			2.16	%	$	349,203			2.11	%
Tax-exempt		121,735			5.22	%		123,949			5.22	%		129,192			5.36	%
Total available-for-sale securities		505,537			2.85	%		505,782			2.91	%		478,395			2.99	%
Interest-bearing due from banks		31,655			0.39	%		35,133			0.37	%		27,201			0.42	%
Federal funds sold		0			0.00	%		0			0.00	%		0			0.00	%
Loans held for sale		151			7.88	%		263			7.54	%		480			5.79	%
Loans receivable:
Taxable		587,675			5.40	%		587,799			5.43	%		605,234			5.56	%
Tax-exempt		39,909			5.28	%		38,537			5.48	%		37,466			5.78	%
Total loans receivable		627,584			5.40	%		626,336			5.43	%		642,700			5.58	%
Total Earning Assets		1,164,927			4.16	%		1,167,514			4.19	%		1,148,776			4.38	%
Cash		16,310						17,361						16,661
Unrealized gain/loss on securities		8,222						7,810						3,937
Allowance for loan losses		(7,476	)					(7,332	)					(7,201	)
Bank premises and equipment		16,415						16,581						17,673
Intangible Asset - Core Deposit Intangible		58						64						95
Intangible Asset - Goodwill		11,942						11,942						11,942
Other assets		38,442						40,201						41,898
Total Assets	$	1,248,840					$	1,254,141					$	1,233,781
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	190,681			0.11	%	$	186,034			0.12	%	$	185,502			0.12	%
Money market		198,999			0.14	%		202,536			0.14	%		200,346			0.14	%
Savings		122,955			0.10	%		123,447			0.10	%		117,975			0.10	%
Certificates of deposit		128,750			0.73	%		137,136			0.76	%		139,601			0.92	%
Individual Retirement Accounts		116,672			0.40	%		120,079			0.40	%		125,166			0.39	%
Other time deposits		677			0.59	%		1,525			0.00	%		682			0.00	%
Total interest-bearing deposits		758,734			0.27	%		770,757			0.28	%		769,272			0.31	%
Borrowed funds:
Short-term		6,886			0.12	%		5,325			0.07	%		7,784			0.15	%
Long-term		73,092			4.03	%		73,162			4.03	%		73,369			4.03	%
Total borrowed funds		79,978			3.69	%		78,487			3.76	%		81,153			3.66	%
Total Interest-bearing Liabilities		838,712			0.59	%		849,244			0.60	%		850,425			0.63	%
Demand deposits		213,230						208,773						191,509
Other liabilities		9,144						10,975						10,082
Total Liabilities		1,061,086						1,068,992						1,052,016
Stockholders' equity, excluding other comprehensive income/loss		182,336						180,042						179,356
Other comprehensive income/loss		5,418						5,107						2,409
Total Stockholders' Equity		187,754						185,149						181,765
Total Liabilities and Stockholders' Equity	$	1,248,840					$	1,254,141					$	1,233,781
Interest Rate Spread					3.57	%					3.59	%					3.75	%
Net Interest Income/Earning Assets					3.73	%					3.75	%					3.91	%
Total Deposits (Interest-bearing and Demand)	$	971,964					$	979,530					$	960,781

(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 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)
	Year						Year
	Ended			Rate of			Ended			Rate of
	12/31/2014			Return/			12/31/2013			Return/
	Average			Cost of			Average			Cost of
	Balance			Funds %			Balance			Funds %
EARNING ASSETS
Available-for-sale securities, at amortized cost:
Taxable	$	371,125			2.16	%	$	330,980			2.15	%
Tax-exempt		123,809			5.31	%		130,584			5.59	%
Total available-for-sale securities		494,934			2.95	%		461,564			3.12	%
Interest-bearing due from banks		32,510			0.39	%		26,159			0.40	%
Federal funds sold		0			0.00	%		4			0.00	%
Loans held for sale		204			7.84	%		1,118			4.83	%
Loans receivable:
Taxable		589,120			5.45	%		620,412			5.72	%
Tax-exempt		38,633			5.54	%		36,083			5.83	%
Total loans receivable		627,753			5.46	%		656,495			5.73	%
Total Earning Assets		1,155,401			4.24	%		1,145,340			4.55	%
Cash		16,865						16,854
Unrealized gain/loss on securities		6,350						8,875
Allowance for loan losses		(7,992	)					(7,204	)
Bank premises and equipment		16,789						18,154
Intangible Asset - Core Deposit Intangible		70						113
Intangible Asset - Goodwill		11,942						11,942
Other assets		40,472						43,022
Total Assets	$	1,239,897					$	1,237,096
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	183,874			0.12	%	$	174,790			0.12	%
Money market		198,990			0.14	%		203,023			0.14	%
Savings		121,685			0.10	%		117,055			0.10	%
Certificates of deposit		134,732			0.79	%		148,598			1.02	%
Individual Retirement Accounts		120,016			0.39	%		129,255			0.43	%
Other time deposits		1,039			0.10	%		1,062			0.09	%
Total interest-bearing deposits		760,336			0.28	%		773,783			0.35	%
Borrowed funds:
Short-term		6,744			0.13	%		6,422			0.14	%
Long-term		73,196			4.03	%		75,906			4.02	%
Total borrowed funds		79,940			3.70	%		82,328			3.72	%
Total Interest-bearing Liabilities		840,276			0.61	%		856,111			0.67	%
Demand deposits		205,082						190,248
Other liabilities		9,070						9,325
Total Liabilities		1,054,428						1,055,684
Stockholders' equity, excluding other comprehensive income/loss		181,271						175,893
Other comprehensive income/loss		4,198						5,519
Total Stockholders' Equity		185,469						181,412
Total Liabilities and Stockholders' Equity	$	1,239,897					$	1,237,096
Interest Rate Spread					3.63	%					3.88	%
Net Interest Income/Earning Assets					3.80	%					4.05	%
Total Deposits (Interest-bearing and Demand)	$	965,418					$	964,031

(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 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									Year Ended
	Dec. 31,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,
	2014			2014			2013			2014			2013
Service charges on deposit accounts	$	1,213		$	1,275		$	1,421		$	5,025		$	5,246
Service charges and fees		133			144			153			538			597
Trust and financial management revenue		1,165			1,140			1,065			4,490			4,087
Brokerage revenue		219			213			198			901			784
Insurance commissions, fees and premiums		15			44			34			118			170
Interchange revenue from debit card transactions		485			504			488			1,959			1,941
Net gains from sales of loans		211			141			409			768			1,969
(Decrease) increase in fair value of servicing rights		(62	)		(17	)		(17	)		(27	)		67
Increase in cash surrender value of life insurance		98			99			98			376			399
Net gain (loss) from premises and equipment		0			9			(30	)		8			(16	)
Other operating income		325			335			305			1,264			1,207
Total other operating income, before realized gains on available-for-sale securities, net	$	3,802		$	3,887		$	4,124		$	15,420		$	16,451

COMPARISON OF NONINTEREST EXPENSE
(In Thousands)	Three Months Ended						Year Ended
	Dec. 31,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,
	2014		2014		2013		2014		2013
Salaries and wages	$	3,562	$	4,348	$	3,435	$	15,121	$	14,206
Pensions and other employee benefits		1,206		1,091		985		4,769		4,150
Occupancy expense, net		626		646		614		2,628		2,473
Furniture and equipment expense		460		461		484		1,859		1,948
FDIC Assessments		156		151		154		600		604
Pennsylvania shares tax		336		336		351		1,350		1,402
Professional fees		272		135		110		699		1,534
Automated teller machine and interchange expense		256		239		218		924		1,020
Software subscriptions		209		184		195		784		836
Other operating expense		1,167		1,445		1,242		5,423		5,298
Total noninterest expense, before loss on prepayment of borrowings		8,250		9,036		7,788		34,157		33,471
Loss on prepayment of borrowings		0		0		0		0		1,023
Total noninterest expense	$	8,250	$	9,036	$	7,788	$	34,157	$	34,494