EXHIBIT 99.1
PRESS RELEASE
(CITIZENS & NORTHERN BANK LOGO)
Contact: Yvonne Gill
April 18, 2005 570-724-0247
ygill@cnbankpa.com
C&N ANNOUNCES FIRST QUARTER 2005 UNAUDITED FINANCIAL RESULTS
FOR IMMEDIATE RELEASE:
Wellsboro, PA - Citizens & Northern Corporation announced the
unaudited, consolidated financial results for Citizens & Northern Corporation
and subsidiaries for the first quarter 2005.
FINANCIAL HIGHLIGHTS FOR THE FIRST QUARTER 2005:
o Net Income was $3,295,000 in the first quarter 2005, down 11%
from net income of $3,706,000 in the first quarter 2004.
Revenues were up for the first quarter 2005 compared to first
quarter 2004; however, expenses increased more than revenues
over the same periods.
o Net interest income was $8,736,000 in the first quarter 2005,
up $424,000 or 5.1% from the first quarter 2004, mainly as a
result of growth in loans. Net realized gains from securities
amounted to $1,066,000 in the first quarter 2005, up from
$964,000 in the first quarter 2004.
o Noninterest expense increased $900,000 (14.5%) in the first
quarter 2005 over the first quarter 2004. The largest
categories of increases in noninterest expense were furniture
and equipment expense, which increased $312,000, or 92.9%;
salaries and wages, which increased $204,000, or 7.6%; and
other expenses, which increased $225,000, or 14.7%. The
increase in furniture and equipment expense resulted mainly
from depreciation and maintenance costs associated with the
new core banking software system, which was implemented in the
fourth quarter 2004. The increase in salaries expense is
primarily a reflection of a greater number of employees, as
the number of full-time equivalent employees increased 9.2%,
to 320 as of March 31, 2005 from 293 as of March 31, 2004. The
increased number of employees resulted from expansion into new
branches in Williamsport and South Williamsport in 2004, as
well as additional employees hired for support functions, such
as Finance, Training and Compliance. The increase in other
expenses included an increase in attorney fees of $121,000,
mainly related to collection activities on a large commercial
credit; an increase of $88,000 in expenses associated with
maintaining and preparing other real estate properties for
sale; costs associated with NASDAQ Small Cap registration and
annual fees totaling $51,000, and an increase in Directors'
compensation of $29,000. Within other
expenses, professional fees dropped $56,000, as 2004's results
included payment of fees related to a system conversion for
the credit card operation.
o Net Income in the first quarter 2005 was $768,000, or 18.9%,
lower than fourth quarter 2004 Net Income of $4,063,000. Net
interest income fell $510,000, or 5.5% in the first quarter
2005 compared to the fourth quarter 2004, primarily as a
result of rising short-term interest rates, and noninterest
expense was $382,000 (5.7%) higher in the first quarter 2005
than in the fourth quarter 2004.
o Net Income Per Share (Basic and Diluted) was $0.40 in the
first quarter 2005, as compared to $0.45 (Basic and Diluted)
in the first quarter 2004, and $0.50 (Basic) and $0.49
(Diluted) in the fourth quarter 2004.
o Return on Average Assets was 1.17% for the first quarter 2005,
as compared to 1.38% for the first quarter 2004. Return on
Average Equity was 9.87% for the first quarter 2005, as
compared to 11.45% for the first quarter 2004.
o Total assets amounted to $1,129,661,000 as of March 31, 2005,
up slightly from total assets of $1,121,127,000 as of March
31, 2004. Net loans increased $66,557,000, or 12.7%, as of
March 31, 2005, compared to one year earlier.
o Shareholders' Equity/Average Assets Ratio was 11.01% as of
March 31, 2005. This safety and soundness measurement needs to
be at a minimum of 5% to be considered well capitalized by
banking regulatory agencies.
o Cash Dividends declared by C&N increased by 4.6% for the first
quarter 2005 over the first quarter 2004, to $0.23 per share.
C&N, founded in 1864, is a local, independent community bank providing
complete financial, investment and insurance services through 19 full service
offices throughout Tioga, Bradford, Sullivan and Lycoming counties. Citizens &
Northern Bank is a wholly-owned subsidiary of Citizens & Northern Corporation,
which has assets in excess of $1 billion. C&N can be found on the worldwide web
at www.cnbankpa.com. The Company's stock trades on the NASDAQ SmallCap Market
under the symbol CZNC.