CITIZENS & NORTHERN CORP - FORM 8-K - EX-99.3 - EXHIBIT 99.3 - April 12, 2013

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8-K - FORM 8-K - CITIZENS & NORTHERN CORPv341276_8k.htm
EX-99.1 - EXHIBIT 99.1 - CITIZENS & NORTHERN CORPv341276_ex99-1.htm
EX-99.2 - EXHIBIT 99.2 - CITIZENS & NORTHERN CORPv341276_ex99-2.htm

 

EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

 

 

AVAILABLE-FOR-SALE SECURITIES March 31, 2013 December 31, 2012 March 31, 2012
(In Thousands) Amortized Fair Amortized Fair Amortized Fair
  Cost Value Cost Value Cost Value
             
Obligations of U.S. Government agencies $35,802 $36,246 $30,695 $31,217 $24,810 $25,488
Obligations of states and political subdivisions:            
     Tax-exempt 132,917 138,910 130,168 137,020 128,628 133,337
     Taxable 27,215 27,595 24,426 24,817 16,846 17,206
Mortgage-backed securities 64,505 67,666 76,368 80,196 117,251 121,943
Collateralized mortgage obligations,            
     Issued by U.S. Government agencies 172,222 173,918 179,770 183,510 162,846 165,764
Trust preferred securities issued by individual institutions 5,160 5,163 5,167 5,171 7,783 8,147
Collateralized debt obligations:            
     Pooled trust preferred securities - senior tranches 1,614 1,659 1,615 1,613 4,993 4,638
     Pooled trust preferred securities - mezzanine tranches 0 0 0 0 0 782
     Other collateralized debt obligations 660 660 660 660 660 660
Total debt securities 440,095 451,817 448,869 464,204 463,817 477,965
Marketable equity securities 5,570 8,038 5,912 8,373 6,151 8,699
Total $445,665 $459,855 $454,781 $472,577 $469,968 $486,664

 

 

 

 

 
 

 

 

Summary of Loans by Type      
(Excludes Loans Held for Sale)      
(In Thousands) Mar. 31, Dec. 31, Mar. 31,
  2013 2012 2012
Residential mortgage:      
  Residential mortgage loans - first liens $306,754 $311,627 $326,343
  Residential mortgage loans - junior liens 25,567 26,748 27,590
  Home equity lines of credit 32,237 33,017 30,534
  1-4 Family residential construction 12,032 12,842 8,409
Total residential mortgage 376,590 384,234 392,876
Commercial:      
  Commercial loans secured by real estate 155,474 158,413 158,323
  Commercial and industrial 47,031 48,442 54,370
  Political subdivisions 27,366 31,789 36,517
  Commercial construction and land 28,461 28,200 23,577
  Loans secured by farmland 11,214 11,403 10,334
  Multi-family (5 or more) residential 6,478 6,745 6,326
  Agricultural loans 2,864 3,053 2,982
  Other commercial loans 238 362 323
Total commercial 279,126 288,407 292,752
Consumer 11,030 11,269 11,960
Total 666,746 683,910 697,588
Less: allowance for loan losses (7,118) (6,857) (7,370)
Loans, net $659,628 $677,053 $690,218
       
Loans Held for Sale      
(In Thousands) Mar. 31, Dec 31, Mar. 31,
  2013 2012 2012
Residential mortgage loans originated      
  and serviced - outstanding balance $114,933 $103,176 $64,569
Less: outstanding balance of loans sold (114,134) (100,631) (62,346)
Loans held for sale, net $799 $2,545 $2,223

 

 

 
 

 

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES        
(In Thousands)        
  3 Months 3 Months Year 3 Months
  Ended Ended Ended Ended
  Mar. 31, Dec. 31, Dec. 31 Mar. 31,
  2013 2012 2012 2012
Balance, beginning of period $6,857 $7,792 $7,705 $7,705
Charge-offs (193) (817) (1,221) (176)
Recoveries 271 15 85 23
Net recoveries (charge-offs) 78 (802) (1,136) (153)
Provision (credit) for loan losses 183 (133) 288 (182)
Balance, end of period $7,118 $6,857 $6,857 $7,370
         
PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS      
AND TROUBLED DEBT RESTRUCTURINGS (TDRs)        
(In Thousands)        
  Mar. 31, Dec. 31, Mar. 31,  
  2013 2012 2012  
Impaired loans with a valuation allowance $2,722 $2,710 $3,299  
Impaired loans without a valuation allowance 4,751 4,719 3,678  
Total impaired loans $7,473 $7,429 $6,977  
         
Total loans past due 30-89 days and still accruing $6,366 $7,756 $5,827  
         
Nonperforming assets:        
  Total nonaccrual loans $7,090 $7,353 $6,961  
  Total loans past due 90 days or more and still accruing 2,351 2,311 1,252  
  Total nonperforming loans 9,441 9,664 8,213  
  Foreclosed assets held for sale (real estate) 915 879 977  
Total nonperforming assets $10,356 $10,543 $9,190  
         
         
Loans subject to troubled debt restructurings (TDRs):        
  Performing $829 $906 $960  
  Nonperforming 1,338 1,155 1,973  
Total TDRs $2,167 $2,061 $2,933  
         
Total nonperforming loans as a % of loans 1.42% 1.41% 1.18%  
Total nonperforming assets as a % of assets 0.83% 0.82% 0.70%  
Allowance for loan losses as a % of total loans 1.07% 1.00% 1.06%  
Allowance for loan losses as a % of nonperforming loans 75.39% 70.95% 89.74%  

 

 

 
 

 

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
  3/31/2013 Return/ 12/31/2012 Return/ 3/31/2012 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 $315,612 2.31% $327,726 2.32% $331,007 3.32%
     Tax-exempt 130,123 5.75% 132,495 5.86% 127,729 6.03%
          Total available-for-sale securities 445,735 3.32% 460,221 3.34% 458,736 4.08%
Interest-bearing due from banks 29,638 0.38% 23,861 0.40% 34,334 0.33%
Federal funds sold 15 0.00% 0 0.00% 0 0.00%
Loans held for sale 2,193 3.88% 3,204 4.10% 1,057 3.42%
Loans receivable:            
     Taxable 636,278 5.88% 656,020 5.97% 665,936 6.26%
     Tax-exempt 38,491 5.81% 39,676 5.99% 36,218 6.36%
          Total loans receivable 674,769 5.88% 695,696 5.97% 702,154 6.27%
          Total Earning Assets 1,152,350 4.74% 1,182,982 4.83% 1,196,281 5.25%
Cash 16,080   17,482   16,891  
Unrealized gain/loss on securities 16,270   18,983   17,923  
Allowance for loan losses (7,126)   (7,849)   (7,739)  
Bank premises and equipment 18,655   18,911   18,898  
Intangible Asset - Core Deposit Intangible 132   149   204  
Intangible Asset - Goodwill 11,942   11,942   11,942  
Other assets 43,376   44,146   48,282  
Total Assets $1,251,679   $1,286,746   $1,302,682  
             
INTEREST-BEARING LIABILITIES            
Interest-bearing deposits:            
     Interest checking $174,149 0.12% $169,782 0.12% $161,524 0.13%
     Money market 202,129 0.14% 208,463 0.15% 205,866 0.19%
     Savings 116,538 0.10% 110,645 0.10% 104,532 0.10%
     Certificates of deposit 160,011 1.17% 186,238 1.43% 191,924 1.73%
     Individual Retirement Accounts 134,076 0.50% 137,565 0.58% 146,241 0.96%
     Other time deposits 845 0.00% 738 0.00% 942 0.00%
          Total interest-bearing deposits 787,748 0.40% 813,431 0.50% 811,029 0.67%
Borrowed funds:            
     Short-term 4,220 0.10% 8,877 0.18% 7,422 0.16%
     Long-term 83,341 4.00% 86,362 4.00% 115,607 4.00%
          Total borrowed funds 87,561 3.81% 95,239 3.64% 123,029 3.77%
          Total Interest-bearing Liabilities 875,309 0.74% 908,670 0.83% 934,058 1.08%
Demand deposits 184,890   187,748   189,275  
Other liabilities 8,875   9,086   9,452  
Total Liabilities 1,069,074   1,105,504   1,132,785  
Stockholders' equity, excluding            
     other comprehensive income/loss 172,578   169,346   158,801  
Other comprehensive income/loss 10,027   11,896   11,096  
Total Stockholders' Equity 182,605   181,242   169,897  
Total Liabilities and Stockholders' Equity $1,251,679   $1,286,746   $1,302,682  
Interest Rate Spread   4.00%   4.00%   4.17%
Net Interest Income/Earning Assets   4.18%   4.19%   4.41%
             
Total Deposits (Interest-bearing            
     and Demand) $972,638   $1,001,179   $1,000,304  
             
(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.  

 

 

 

 
 

 

COMPARISON OF NONINTEREST INCOME        
(In Thousands) Three Months Ended
  Mar. 31, Dec. 31, Mar. 31,
  2013 2012 2012
Service charges on deposit accounts $1,159 $1,329 $1,161
Service charges and fees 201 235 220
Trust and financial management revenue 944 1,085 929
Brokerage revenue 144 148 168
Insurance commissions, fees and premiums 45 52 34
Interchange revenue from debit card transactions 464 478 495
Net gains from sales of loans 545 662 265
Increase in cash surrender value of life insurance 93 108 119
Net loss from premises and equipment 0 (1) 0
Other operating income 248 231 264
Total other operating income, before realized      
   gains on available-for-sale securities, net $3,843 $4,327 $3,655
       
COMPARISON OF NONINTEREST EXPENSE      
(In Thousands) Three Months Ended
  Mar. 31, Dec. 31, Mar. 31,
  2013 2012 2012
 Salaries and wages $3,600 $3,615 $3,575
 Pensions and other employee benefits 1,255 1,059 1,366
 Occupancy expense, net 634 602 636
 Furniture and equipment expense 494 469 482
 FDIC Assessments 152 165 146
 Pennsylvania shares tax 350 301 332
Other operating expense 2,068 1,743 1,876
 Total noninterest expense, before loss on      
    prepayment of borrowings 8,553 7,954 8,413
Loss on prepayment of borrowings 1,023 0 0
 Total Noninterest Expense $9,576 $7,954 $8,413

 

 

 

 

 

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