Exhibit 99.1
PRESS RELAESE
(CITIZENS & NORTHERN BANK LOGO)
Contact: Yvonne Gill
October 14, 2005 570-724-0247
ygill@cnbankpa.com
C&N ANNOUNCES SEPTEMBER 30, 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 nine months ended September 30, 2005, and for the third
quarter 2005, which are highlighted below.
FINANCIAL HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005:
o C&N's acquisition of First State Bank (through the acquisition of
Canisteo Valley Corporation, the parent company for First State
Bank) was completed, effective at the end of August 2005.
Including an increase in assets arising from the First State Bank
acquisition of approximately $40 million, total assets increased
4.2%, to $1,183,599,000 as of September 30, 2005 from
$1,135,433,000 as of September 30, 2004.
o Net loans increased 12.9%, to $637,646,000 at September 30, 2005,
from $564,867,000 at September 30, 2004. Excluding First State
Bank, the increase in net loans was 8.7%.
o Total deposits and repo sweep accounts increased 12.5%, to
$782,813,000 at September 30, 2005, from $695,836,000 at September
30, 2004. Excluding First State Bank, deposits and repo sweeps
increased 6.9%.
o Tangible Equity/Tangible Assets Ratio was 10.45% as of September
30, 2005. Banking regulatory agencies consider 5% to be the
minimum threshold, for purposes of this ratio, for banks to be
considered well capitalized.
o Net Income was $9,880,000 for the nine months ended September 30,
2005, down 8.5% from net income of $10,800,000 for the first nine
months of 2004. Net Income Per Share was $1.20 (Basic) and $1.19
(Diluted) for the nine months ended September 30, 2005, as
compared to $1.32 (Basic) and $1.31 (Diluted) for the first nine
months of 2004. The First State Bank acquisition and operating
results for the month of September 2005 did not have a significant
impact on C&N's operating results.
o Return on Average Assets was 1.16% for the first nine months of
2005, as compared to 1.30% for the first nine months of 2004.
Return on Average Equity was 9.92% for the nine months ended
September 30, 2005, as compared to 11.28% for the first nine
months of 2004.
o Cash Dividends declared by C&N increased by 4.6% for the first
nine months of 2005 over the same period in 2004, to $0.69 per
share.
o Net interest income of $26,634,000 for the first nine months of
2005 was $564,000, or 2.2%, higher than the first nine months of
2004. Increases in loan volume have been the major reason for the
growth in net interest income through the first three quarters of
2005.
o Net realized gains from securities amounted to $2,388,000 for the
nine months ended September 30, 2005, up $644,000 from the first
nine months of 2004.
o Other (noninterest) income totaled $5,741,000 in the first nine
months of 2005, an increase of $634,000, or 12.4%, over the first
nine months of 2004. This category includes several sources of
revenue. The sources of revenue with the largest increases in the
first nine months of 2005 included the following: fees related to
credit card operations of $144,000; debit card fees of $123,000;
dividends from Federal Home Loan Bank of Pittsburgh stock of
$122,000; and Trust revenues of $106,000.
o Noninterest expense increased $2,349,000 (12.2%) in the first nine
months of 2005 as compared to the first nine months of 2004. Total
salaries and benefit expenses increased $1,066,000, or 9.7% in the
first nine months of 2005 over the first nine months of 2004,
primarily due to new hires to accommodate expansion into new
branches (Williamsport and South Williamsport in 2004, Jersey
Shore in August 2005, and Canisteo and South Hornell, NY, in
September 2005), and from the addition of new employees for
support functions, such as Risk Management, Finance and Training.
Furniture and equipment expense increased $761,000, or 65.6%,
mainly due to depreciation and maintenance costs associated with
the new core banking software system, which was implemented in the
fourth quarter 2004.
o The income tax provision increased $338,000, to $2,154,000 (17.9%
of pre-tax income) in the first nine months of 2005 from
$1,816,000 (14.4%) in the first nine months of 2004. The income
tax rate as a percentage of pre-tax income increased in the first
nine months of 2005 because C&N lowered its holdings of tax-exempt
securities as a percentage of total assets in an effort to reduce
or eliminate the need to pay alternative minimum tax.
FINANCIAL HIGHLIGHTS FOR THE THIRD QUARTER 2005:
o Net Income in the third quarter 2005 was $3,287,000, or 3.5%,
lower than third quarter 2004 Net Income of $3,405,000. Net Income
for the third quarter 2005 was down slightly from second quarter
2005 Net Income of $3,298,000. Net Income Per Share (Basic and
Diluted) was $0.40 in the third quarter 2005, the same as the
second quarter 2005, and down from $0.42 (Basic) and $0.41
(Diluted) in the third quarter 2004.
o Cash Dividends declared by C&N increased to $0.23 per share for
the third quarter 2005 from $0.22 per share for the third quarter
2004.
Citizens & Northern Corporation is the parent company of Citizens &
Northern Bank and First State Bank. Citizens & Northern Bank is a local,
independent community bank providing complete financial, investment and
insurance services through 20 full service offices throughout Tioga, Bradford,
Sullivan and Lycoming counties in Pennsylvania. First State Bank provides
banking services through its offices in Canisteo and South Hornell, NY. C&N can
be found on the worldwide web at www.cnbankpa.com. First State Bank can be found
on the web at www.fsbcanisteo.com. The Company's stock is listed on NASDAQ
Capital Market Securities under the symbol CZNC.