CITIZENS & NORTHERN CORP - FORM 8-K - EX-99.3 - EXHIBIT 99.3 - April 11, 2014

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8-K - FORM 8-K - CITIZENS & NORTHERN CORPv374553_8k.htm
EX-99.1 - EXHIBIT 99.1 - CITIZENS & NORTHERN CORPv374553_ex99-1.htm
EX-99.2 - EXHIBIT 99.2 - CITIZENS & NORTHERN CORPv374553_ex99-2.htm

 

EXHIBIT 99.3 – Supplemental, Unaudited Financial Information

 

AVAILABLE-FOR-SALE SECURITIES March 31, 2014 December 31, 2013
(In Thousands) Amortized Fair Amortized Fair
  Cost Value Cost Value
         
Obligations of U.S. Government agencies $29,667 $28,523 $47,382 $45,877
Obligations of states and political subdivisions:        
     Tax-exempt 124,282 127,179 127,748 128,426
     Taxable 33,833 33,624 35,153 34,471
Mortgage-backed securities 91,178 92,930 84,849 86,208
Collateralized mortgage obligations,        
     Issued by U.S. Government agencies 194,508 192,066 182,373 178,092
Trust preferred securities issued by individual institutions 0 0 0 0
Collateralized debt obligations:        
     Pooled trust preferred securities - senior tranches 0 0 0 0
     Other collateralized debt obligations 660 660 660 660
Total debt securities 474,128 474,982 478,165 473,734
Marketable equity securities 6,128 9,032 6,038 8,924
Total $480,256 $484,014 $484,203 $482,658

 

Summary of Loans by Type      
(Excludes Loans Held for Sale)      
(In Thousands) Mar. 31, Dec. 31, Mar. 31,
  2014 2013 2013
Residential mortgage:      
  Residential mortgage loans - first liens $295,869 $299,831 $306,754
  Residential mortgage loans - junior liens         23,048         23,040 25,567
  Home equity lines of credit         34,755         34,530 32,237
  1-4 Family residential construction         12,635         13,909 12,032
Total residential mortgage       366,307       371,310 376,590
Commercial:      
  Commercial loans secured by real estate       146,569       147,215 155,474
  Commercial and industrial         40,477         42,387 47,031
  Political subdivisions         10,436         16,291 27,366
  Commercial construction and land         14,692         17,003 28,461
  Loans secured by farmland           8,602         10,468 11,214
  Multi-family (5 or more) residential         10,906         10,985 6,478
  Agricultural loans           3,159           3,251 2,864
  Other commercial loans         14,343         14,631 238
Total commercial 249,184 262,231 279,126
Consumer         10,327         10,762 11,030
Total 625,818 644,303 666,746
Less: allowance for loan losses          (8,343)          (8,663) (7,118)
Loans, net $617,475 $635,640 $659,628

 

 
 

 

Loans Held for Sale      
(In Thousands) Mar. 31, Dec. 31, Mar. 31,
  2014 2013 2013
Residential mortgage loans originated      
  and serviced - outstanding balance $147,524 $146,008 $114,933
Less: outstanding balance of loans sold      (147,391)      (145,954) (114,134)
Loans held for sale, net $133 $54 $799

 

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
  2014 2013 2013 2013
Balance, beginning of period $8,663 $7,130 $6,857 $6,857
Charge-offs (274) (52) (671) (193)
Recoveries 265 26 430 271
Net charge-offs (9) (26) (241) 78
(Credit) provision for loan losses (311) 1,559 2,047 183
Balance, end of period $8,343 $8,663 $8,663 $7,118

 

PAST DUE AND IMPAIRED LOANS, NONPERFORMING ASSETS    
AND TROUBLED DEBT RESTRUCTURINGS (TDRs)      
(In Thousands)      
  Mar. 31, Dec 31, Mar. 31,
  2014 2013 2013
Impaired loans with a valuation allowance $9,576 $9,889 $2,722
Impaired loans without a valuation allowance 5,430 6,432 4,751
Total impaired loans $15,006 $16,321 $7,473
       
Total loans past due 30-89 days and still accruing $7,650 $8,305 $6,366
       
Nonperforming assets:      
  Total nonaccrual loans $14,257 $14,934 $7,090
  Total loans past due 90 days or more and still accruing 2,160 3,131 2,351
  Total nonperforming loans 16,417 18,065 9,441
  Foreclosed assets held for sale (real estate) 1,321 892 915
Total nonperforming assets $17,738 $18,957 $10,356
       
Loans subject to troubled debt restructurings (TDRs):      
  Performing $3,020 $3,267 $829
  Nonperforming 112 908 1,338
Total TDRs $3,132 $4,175 $2,167
       
Total nonperforming loans as a % of loans 2.62% 2.80% 1.42%
Total nonperforming assets as a % of assets 1.44% 1.53% 0.83%
Allowance for loan losses as a % of total loans 1.33% 1.34% 1.07%
Allowance for loan losses as a % of nonperforming loans 50.82% 47.95% 75.39%

 

 
 

 

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
  3/31/2014 Return/ 12/31/2013 Return/ 3/31/2013 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 $345,663 2.22% $349,203 2.11% $315,612 2.31%
     Tax-exempt $126,030 5.45% 129,192 5.36% 130,123 5.75%
          Total available-for-sale securities 471,693 3.08% 478,395 2.99% 445,735 3.32%
Interest-bearing due from banks 30,099 0.40% 27,201 0.42% 29,638 0.38%
Federal funds sold 0 0.00% 0 0.00% 15 0.00%
Loans held for sale 119 10.22% 480 5.79% 2,193 3.88%
Loans receivable:            
     Taxable 595,514 5.45% 605,234 5.56% 636,278 5.88%
     Tax-exempt 39,662 5.82% 37,466 5.78% 38,491 5.81%
          Total loans receivable 635,176 5.47% 642,700 5.58% 674,769 5.88%
          Total Earning Assets 1,137,087 4.35% 1,148,776 4.38% 1,152,350 4.74%
Cash 16,299   16,661   16,080  
Unrealized gain/loss on securities 2,752   3,937   16,270  
Allowance for loan losses (8,780)   (7,201)   (7,126)  
Bank premises and equipment 17,283   17,673   18,655  
Intangible Asset - Core Deposit Intangible 83   95   132  
Intangible Asset - Goodwill 11,942   11,942   11,942  
Other assets 42,326   41,898   43,376  
Total Assets $1,218,992   $1,233,781   $1,251,679  
             
INTEREST-BEARING LIABILITIES            
Interest-bearing deposits:            
     Interest checking $179,617 0.12% $185,502 0.12% $174,149 0.12%
     Money market 195,596 0.14% 200,346 0.14% 202,129 0.14%
     Savings 118,529 0.10% 117,975 0.10% 116,538 0.10%
     Certificates of deposit 134,833 0.87% 139,601 0.92% 160,011 1.17%
     Individual Retirement Accounts 122,389 0.38% 125,166 0.39% 134,076 0.50%
     Other time deposits 812 0.00% 682 0.00% 845 0.00%
          Total interest-bearing deposits 751,776 0.30% 769,272 0.31% 787,748 0.40%
Borrowed funds:            
     Short-term 10,049 0.20% 7,784 0.15% 4,220 0.10%
     Long-term 73,300 4.03% 73,369 4.03% 83,341 4.00%
          Total borrowed funds 83,349 3.57% 81,153 3.66% 87,561 3.81%
          Total Interest-bearing Liabilities 835,125 0.63% 850,425 0.63% 875,309 0.74%
Demand deposits 193,402   191,509   184,890  
Other liabilities 8,158   10,082   8,875  
Total Liabilities 1,036,685   1,052,016   1,069,074  
Stockholders' equity, excluding accumulated            
     other comprehensive income/loss 180,440   179,356   172,578  
Accumulated other comprehensive income/loss 1,867   2,409   10,027  
Total Stockholders' Equity 182,307   181,765   182,605  
Total Liabilities and Stockholders' Equity $1,218,992   $1,233,781   $1,251,679  
Interest Rate Spread   3.72%   3.75%   4.00%
Net Interest Income/Earning Assets   3.89%   3.91%   4.18%
             
Total Deposits (Interest-bearing            
     and Demand) $945,178   $960,781   $972,638  
             
(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,
  2014 2013 2013
Service charges on deposit accounts $1,223 $1,421 $1,226
Service charges and fees 127 153 134
Trust and financial management revenue 1,047 1,065 944
Brokerage revenue 227 198 144
Insurance commissions, fees and premiums 32 34 45
Interchange revenue from debit card transactions 453 488 464
Net gains from sales of loans 151 315 504
Increase in cash surrender value of life insurance 88 98 93
Net (loss) gain from premises and equipment 0 (30) 0
Other operating income 403 382 289
Total other operating income, before realized      
   gains on available-for-sale securities, net $3,751 $4,124 $3,843
       
COMPARISON OF NONINTEREST EXPENSE      
(In Thousands) Three Months Ended
  Mar. 31, Dec. 31, Mar. 31,
  2014 2013 2013
 Salaries and wages $3,565 $3,435 $3,600
 Pensions and other employee benefits 1,319 985 1,255
 Occupancy expense, net 715 614 634
 Furniture and equipment expense 472 484 494
 FDIC Assessments 147 154 152
 Pennsylvania shares tax 341 351 350
Other operating expense 1,965 1,765 2,068
 Total noninterest expense, before loss on      
    prepayment of borrowings 8,524 7,788 8,553
Loss on prepayment of borrowings 0 0 1,023
 Total Noninterest Expense $8,524 $7,788 $9,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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