Citizens & Northern (CZNC) 8-K C&N DECLARES DIVIDEND AND Announces 2016 UNAUDITED Financial RESULTS

Exhibit 99.3 – Supplemental, Unaudited Financial Information

CONDENSED, CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars In Thousands, Except Per Share Data) (Unaudited)

	YEARS ENDED						%
	DECEMBER 31,						INCREASE
	2016			2015			(DECREASE)
EARNINGS PERFORMANCE
Net Income	$	15,762		$	16,471			-4.30	%
Return on Average Assets		1.28	%		1.32	%		-3.03	%
Return on Average Equity		8.37	%		8.72	%		-4.01	%
Efficiency Ratio (a)		59.22	%		56.66	%		4.52	%
BALANCE SHEET HIGHLIGHTS
Total Assets	$	1,242,292		$	1,223,417			1.54	%
Available-for-Sale Securities		395,077			420,290			-6.00	%
Loans (Net)		743,362			696,991			6.65	%
Allowance for Loan Losses		8,473			7,889			7.40	%
Deposits and Repo Sweep Accounts		989,018			940,530			5.16	%
OFF-BALANCE SHEET
Outstanding Balance of Mortgage Loans Sold with Servicing Retained		163,296			152,448			7.12	%
Trust Assets Under Management		879,844			814,788			7.98	%
SHAREHOLDERS’ VALUE (PER COMMON SHARE)
Net Income - Basic	$	1.30		$	1.35			-3.70	%
Net Income - Diluted	$	1.30		$	1.35			-3.70	%
Cash Dividends Declared	$	1.04		$	1.04			0.00	%
Common Book Value	$	15.36		$	15.39			-0.19	%
Tangible Common Book Value	$	14.37		$	14.41			-0.28	%
Market Value (Last Trade)	$	26.20		$	21.00			24.76	%
Market Value /  Common Book Value		170.57	%		136.45	%		25.01	%
Market Value /  Tangible Common Book Value		182.32	%		145.73	%		25.11	%
Price Earnings Multiple (b)		20.15			15.56			29.50	%
Dividend Yield (b)		3.97	%		4.95	%		-19.80	%
Common Shares Outstanding, End of Period		12,113,228			12,180,623			-0.55	%
SAFETY AND SOUNDNESS
Tangible Common Equity / Tangible Assets		14.15	%		14.49	%		-2.35	%
Nonperforming Assets / Total Assets		1.43	%		1.31	%		9.16	%
Allowance for Loan Losses / Total Loans		1.13	%		1.12	%		0.89	%
Total Risk Based Capital Ratio (c)		23.72	%		24.40	%		-2.79	%
Tier 1 Risk Based Capital Ratio (c)		22.60	%		23.29	%		-2.96	%
Common Equity Tier 1 Risk Based Capital Ratio (c)		22.60	%		23.29	%		-2.96	%
Leverage Ratio (c)		14.29	%		14.31	%		-0.14	%
AVERAGE BALANCES
Average Assets	$	1,229,866		$	1,243,209			-1.07	%
Average Equity	$	188,373		$	188,905			-0.28	%

(a) The efficiency ratio is calculated by dividing: (i) total noninterest expense excluding losses from prepayment of debt, by (ii) the sum of net interest income (including income from tax-exempt securities and loans on a fully-taxable equivalent basis) and noninterest income excluding securities gains or losses.

(b) The price earnings multiple and dividend yield are calculated using the Corporation’s stock price based on the last reported trade of each applicable period.

(c) Capital ratios for the most recent period are estimated.

1

QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION

(In Thousands) (Unaudited)	For the Three Months Ended:
	Dec. 31,			Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		Mar. 31,
	2016			2016		2016		2016		2015		2015		2015		2015
Interest income	$	11,106		$	11,131	$	10,924	$	10,937	$	11,036	$	11,134	$	11,186	$	11,163
Interest expense		920			944		925		904		1,087		1,126		1,176		1,213
Net interest income		10,186			10,187		9,999		10,033		9,949		10,008		10,010		9,950
(Credit) provision for loan losses		(3	)		538		318		368		319		302		221		3
Net interest income after (credit) provision for loan losses		10,189			9,649		9,681		9,665		9,630		9,706		9,789		9,947
Other income		4,031			3,884		3,906		3,690		3,999		3,961		3,962		3,556
Net gains on available-for-sale securities		69			584		122		383		1,776		79		932		74
Loss on prepayment of borrowings		0			0		0		0		1,663		0		910		0
Other expenses		8,558			8,579		8,535		9,072		8,416		8,117		7,964		8,533
Income before income tax provision		5,731			5,538		5,174		4,666		5,326		5,629		5,809		5,044
Income tax provision		1,500			1,451		1,303		1,093		1,261		1,395		1,452		1,229
Net income	$	4,231		$	4,087	$	3,871	$	3,573	$	4,065	$	4,234	$	4,357	$	3,815
Net income per share – basic	$	0.35		$	0.34	$	0.32	$	0.29	$	0.33	$	0.35	$	0.36	$	0.31
Net income per share – diluted	$	0.35		$	0.34	$	0.32	$	0.29	$	0.33	$	0.35	$	0.36	$	0.31

QUARTERLY CONDENSED, CONSOLIDATED BALANCE SHEET INFORMATION

(In Thousands) (Unaudited)	As of:
	Dec. 31,			Sept. 30,		Dec. 31,
	2016			2016		2015
ASSETS
Cash & Due from Banks	$	32,109		$	34,070	$	36,061
Available-for-Sale Securities		395,077			409,800		420,290
Loans Held for Sale		142			621		280
Loans, Net		743,362			733,917		696,991
Intangible Assets		11,959			11,963		11,972
Other Assets		59,643			54,962		57,823
TOTAL ASSETS	$	1,242,292		$	1,245,333	$	1,223,417
LIABILITIES
Deposits	$	983,843		$	991,880	$	935,615
Repo Sweep Accounts		5,175			6,320		4,915
Total Deposits and Repo Sweeps		989,018			998,200		940,530
Borrowed Funds		59,454			46,808		87,348
Other Liabilities		7,812			9,722		8,052
TOTAL LIABILITIES		1,056,284			1,054,730		1,035,930
SHAREHOLDERS’ EQUITY
Common Shareholders’ Equity, Excluding
Accumulated Other Comprehensive Income/ Loss		186,906			185,173		184,959
Accumulated Other Comprehensive Income/ Loss:
Net Unrealized Gains/Losses on Available-for-sale Securities		(949	)		5,388		2,493
Defined Benefit Plans Adjustment, Net		51			42		35
TOTAL SHAREHOLDERS’ EQUITY		186,008			190,603		187,487
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,242,292		$	1,245,333	$	1,223,417

2

AVAILABLE-FOR-SALE SECURITIES	December 31, 2016				September 30, 2016				December 31, 2015
(In Thousands)	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value
Obligations of U.S. Government agencies	$	9,671	$	9,541	$	9,667	$	9,747	$	10,663	$	10,483
Obligations of states and political subdivisions:
Tax-exempt		118,140		119,037		116,797		121,283		103,414		107,757
Taxable		30,073		30,297		32,764		33,672		34,317		34,597
Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies:								��
Residential pass-through securities		58,922		58,404		60,966		62,187		73,227		73,343
Residential collateralized mortgage obligations		147,915		146,608		164,508		165,719		193,145		191,715
Commercial mortgage-backed securities		30,817		30,219		16,056		16,112		0		0
Other collateralized debt obligations		0		0		0		0		9		9
Total debt securities		395,538		394,106		400,758		408,720		414,775		417,904
Marketable equity securities		1,000		971		752		1,080		1,680		2,386
Total	$	396,538	$	395,077	$	401,510	$	409,800	$	416,455	$	420,290

Summary of Loans by Type

(Excludes Loans Held for Sale)
(In Thousands)	Dec. 31,			Sept. 30,			Dec. 31,
	2016			2016			2015
Residential mortgage:
Residential mortgage loans - first liens	$	334,102		$	325,533		$	304,783
Residential mortgage loans - junior liens		23,706			22,794			21,146
Home equity lines of credit		38,057			38,623			39,040
1-4 Family residential construction		24,908			23,310			21,121
Total residential mortgage		420,773			410,260			386,090
Commercial:
Commercial loans secured by real estate		150,468			149,938			154,779
Commercial and industrial		83,854			86,969			75,196
Political subdivisions		38,068			38,653			40,007
Commercial construction and land		14,287			12,809			5,122
Loans secured by farmland		7,294			6,900			7,019
Multi-family (5 or more) residential		7,896			8,133			9,188
Agricultural loans		3,998			4,313			4,671
Other commercial loans		11,475			11,557			12,152
Total commercial		317,340			319,272			308,134
Consumer		13,722			12,806			10,656
Total		751,835			742,338			704,880
Less: allowance for loan losses		(8,473	)		(8,421	)		(7,889	)
Loans, net	$	743,362		$	733,917		$	696,991

Loans Held for Sale
(In Thousands)	Dec. 31,			Sept. 30,			Dec. 31,
	2016			2016			2015
Residential mortgage loans originated and serviced - outstanding balance	$	163,438		$	158,466		$	152,728
Less: outstanding balance of loans sold		(163,296	)		(157,845	)		(152,448	)
Loans held for sale, net	$	142		$	621		$	280

3

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,
	2016			2016			2016			2015
Balance, beginning of period	$	8,421		$	7,929		$	7,889		$	7,336
Charge-offs		(20	)		(61	)		(757	)		(562	)
Recoveries		75			15			120			270
Net recoveries (charge-offs)		55			(46	)		(637	)		(292	)
(Credit) provision for loan losses		(3	)		538			1,221			845
Balance, end of period	$	8,473		$	8,421		$	8,473		$	7,889

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS

AND TROUBLED DEBT RESTRUCTURINGS (TDRs)

(Dollars In Thousands)

	Dec. 31,			Sept. 30,			Dec. 31,
	2016			2016			2015
Impaired loans with a valuation allowance	$	3,372		$	3,621		$	1,933
Impaired loans without a valuation allowance		7,488			7,514			8,041
Total impaired loans	$	10,860		$	11,135		$	9,974
Total loans past due 30-89 days and still accruing	$	7,735		$	4,040		$	7,057
Nonperforming assets:
Total nonaccrual loans	$	8,736		$	12,481		$	11,517
Total loans past due 90 days or more and still accruing		6,838			7,539			3,229
Total nonperforming loans		15,574			20,020			14,746
Foreclosed assets held for sale (real estate)		2,180			2,321			1,260
Total nonperforming assets	$	17,754		$	22,341		$	16,006
Loans subject to troubled debt restructurings (TDRs):
Performing	$	5,803		$	946		$	1,186
Nonperforming		2,874			5,032			5,178
Total TDRs	$	8,677		$	5,978		$	6,364
Total nonperforming loans as a % of loans		2.07	%		2.70	%		2.09	%
Total nonperforming assets as a % of assets		1.43	%		1.79	%		1.31	%
Allowance for loan losses as a % of total loans		1.13	%		1.13	%		1.12	%
Allowance for loan losses as a % of nonperforming loans		54.40	%		42.06	%		53.50	%

4

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
	12/31/2016			Return/			9/30/2016			Return/			12/31/2015			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	$	279,385			1.96	%	$	291,847			1.98	%	$	327,225			2.05	%
Tax-exempt		118,541			4.36	%		112,679			4.51	%		105,118			4.99	%
Total available-for-sale securities		397,926			2.67	%		404,526			2.69	%		432,343			2.76	%
Interest-bearing due from banks		14,424			0.74	%		17,138			0.67	%		20,168			0.39	%
Loans held for sale		341			7.00	%		556			5.01	%		406			5.86	%
Loans receivable:
Taxable		688,123			4.87	%		671,408			4.95	%		629,294			5.04	%
Tax-exempt		57,293			4.53	%		61,608			4.50	%		61,339			4.52	%
Total loans receivable		745,416			4.84	%		733,016			4.91	%		690,633			5.00	%
Total Earning Assets		1,158,107			4.05	%		1,155,236			4.07	%		1,143,550			4.07	%
Cash		16,636						17,523						16,390
Unrealized gain/loss on securities		4,223						9,654						7,637
Allowance for loan losses		(8,585	)					(8,050	)					(7,525	)
Bank premises and equipment		15,425						15,379						15,499
Intangible Asset - Core Deposit Intangible		18						24						32
Intangible Asset - Goodwill		11,942						11,942						11,942
Other assets		41,431						38,225						38,037
Total Assets	$	1,239,197					$	1,239,933					$	1,225,562
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	212,463			0.16	%	$	200,789			0.15	%	$	195,439			0.11	%
Money market		199,983			0.18	%		205,158			0.17	%		192,825			0.16	%
Savings		135,059			0.10	%		133,269			0.10	%		127,744			0.10	%
Certificates of deposit		113,776			0.78	%		123,475			0.77	%		116,699			0.68	%
Individual Retirement Accounts		101,046			0.43	%		103,259			0.42	%		107,484			0.41	%
Other time deposits		676			0.00	%		1,523			0.26	%		678			0.00	%
Total interest-bearing deposits		763,003			0.28	%		767,473			0.28	%		740,869			0.25	%
Borrowed funds:
Short-term		18,182			0.48	%		18,655			0.64	%		17,395			0.39	%
Long-term		38,497			3.75	%		38,571			3.76	%		59,929			3.96	%
Total borrowed funds		56,679			2.70	%		57,226			2.75	%		77,324			3.16	%
Total Interest-bearing Liabilities		819,682			0.45	%		824,699			0.46	%		818,193			0.53	%
Demand deposits		221,928						215,880						207,534
Other liabilities		9,366						9,057						9,149
Total Liabilities		1,050,976						1,049,636						1,034,876
Stockholders’ equity, excluding other comprehensive income/loss		185,437						183,966						185,716
Other comprehensive income/loss		2,784						6,331						4,970
Total Stockholders’ Equity		188,221						190,297						190,686
Total Liabilities and Stockholders’ Equity	$	1,239,197					$	1,239,933					$	1,225,562
Interest Rate Spread					3.60	%					3.61	%					3.54	%
Net Interest Income/Earning Assets					3.73	%					3.74	%					3.69	%
Total Deposits (Interest-bearing and Demand)	$	984,931					$	983,353					$	948,403

(1) Annualized 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.

(3) Rates of return on earning assets and costs of funds are presented on an annualized basis.

5

Analysis of Average Daily Balances and Rates

(Dollars in Thousands)

	Year						Year
	Ended			Rate of			Ended			Rate of
	12/31/2016			Return/			12/31/2015			Return/
	Average			Cost of			Average			Cost of
	Balance			Funds %			Balance			Funds %
EARNING ASSETS
Available-for-sale securities, at amortized cost:
Taxable	$	293,636			2.01	%	$	366,448			2.07	%
Tax-exempt		111,343			4.71	%		112,700			5.21	%
Total available-for-sale securities		404,979			2.75	%		479,148			2.81	%
Interest-bearing due from banks		19,022			0.61	%		22,201			0.42	%
Loans held for sale		472			5.72	%		222			7.21	%
Loans receivable:
Taxable		662,769			4.95	%		603,771			5.19	%
Tax-exempt		60,307			4.52	%		53,956			4.72	%
Total loans receivable		723,076			4.92	%		657,727			5.15	%
Total Earning Assets		1,147,549			4.08	%		1,159,298			4.09	%
Cash		16,570						16,639
Unrealized gain/loss on securities		7,166						8,871
Allowance for loan losses		(8,082	)					(7,380	)
Bank premises and equipment		15,413						15,911
Intangible Asset - Core Deposit Intangible		24						41
Intangible Asset - Goodwill		11,942						11,942
Other assets		39,284						37,887
Total Assets	$	1,229,866					$	1,243,209
INTEREST-BEARING LIABILITIES
Interest-bearing deposits:
Interest checking	$	201,357			0.15	%	$	195,940			0.11	%
Money market		199,405			0.17	%		196,585			0.15	%
Savings		132,679			0.10	%		128,355			0.10	%
Certificates of deposit		117,130			0.75	%		121,803			0.68	%
Individual Retirement Accounts		103,467			0.42	%		110,659			0.41	%
Other time deposits		1,036			0.10	%		1,031			0.10	%
Total interest-bearing deposits		755,074			0.28	%		754,373			0.26	%
Borrowed funds:
Short-term		23,906			0.65	%		11,428			0.28	%
Long-term		38,610			3.76	%		66,214			4.00	%
Total borrowed funds		62,516			2.57	%		77,642			3.45	%
Total Interest-bearing Liabilities		817,590			0.45	%		832,015			0.55	%
Demand deposits		215,373						213,828
Other liabilities		8,530						8,461
Total Liabilities		1,041,493						1,054,304
Stockholders’ equity, excluding other comprehensive income/loss		183,671						183,125
Other comprehensive income/loss		4,702						5,780
Total Stockholders’ Equity		188,373						188,905
Total Liabilities and Stockholders’ Equity	$	1,229,866					$	1,243,209
Interest Rate Spread					3.63	%					3.54	%
Net Interest Income/Earning Assets					3.76	%					3.69	%
Total Deposits (Interest-bearing and Demand)	$	970,447					$	968,201

(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.

6

COMPARISON OF NONINTEREST INCOME
(In Thousands)	Three Months Ended									Years Ended
	Dec. 31,			Sept. 30,			Dec. 31,			Dec. 31,			Dec. 31,
	2016			2016			2015			2016			2015
Service charges on deposit accounts	$	1,172		$	1,221		$	1,235		$	4,695		$	4,864
Service charges and fees		104			118			121			439			494
Trust and financial management revenue		1,193			1,172			1,148			4,760			4,626
Brokerage revenue		187			216			199			756			839
Insurance commissions, fees and premiums		28			26			22			102			109
Interchange revenue from debit card transactions		512			481			479			1,943			1,935
Net gains from sales of loans		330			236			162			1,029			735
(Decrease) increase in fair value of servicing rights		(35	)		(68	)		(25	)		(282	)		(162	)
Increase in cash surrender value of life insurance		96			97			92			382			386
Other operating income		444			385			566			1,687			1,652
Total other operating income, before realized gains on available-for-sale securities, net	$	4,031		$	3,884		$	3,999		$	15,511		$	15,478

COMPARISON OF NONINTEREST EXPENSE
(In Thousands)	Three Months Ended						Years Ended
	Dec. 31,		Sept. 30,		Dec. 31,		Dec. 31,		Dec. 31,
	2016		2016		2015		2016		2015
Salaries and wages	$	3,710	$	3,901	$	3,848	$	15,411	$	14,682
Pensions and other employee benefits		1,218		1,060		1,084		4,717		4,420
Occupancy expense, net		570		601		589		2,340		2,574
Furniture and equipment expense		429		435		462		1,730		1,860
FDIC Assessments		40		151		149		488		603
Pennsylvania shares tax		342		287		302		1,274		1,248
Professional fees		310		245		201		1,126		638
Automated teller machine and interchange expense		330		291		253		1,137		988
Software subscriptions		252		237		259		981		876
Other operating expense		1,357		1,371		1,269		5,540		5,141
Total noninterest expense, before loss on prepayment of borrowings		8,558		8,579		8,416		34,744		33,030
Loss on prepayment of borrowings		0		0		1,663		0		2,573
Total noninterest expense	$	8,558	$	8,579	$	10,079	$	34,744	$	35,603

7