Company Performance - Citizens & Northern (CZNC) reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.45 per share, and down from $0.50 per share a year ago, representing an earnings surprise of -8.89% [1] - The company posted revenues of $27.49 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.16%, compared to year-ago revenues of $26.15 million [1] - Over the last four quarters, Citizens & Northern has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [1] Stock Performance - Citizens & Northern shares have lost about 10.5% since the beginning of the year, while the S&P 500 has gained 22.5% [2] - The current Zacks Rank for Citizens & Northern is 4 (Sell), indicating expected underperformance in the near future [4] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.46 on revenues of $28.3 million, and for the current fiscal year, it is $1.65 on revenues of $109.7 million [4] - The estimate revisions trend for Citizens & Northern is currently unfavorable, which may impact future stock performance [4] Industry Context - The Zacks Industry Rank for Banks - Northeast is in the top 38% of over 250 Zacks industries, suggesting that the industry outlook can significantly affect stock performance [5] - Esquire Financial Holdings, Inc. (ESQ), another company in the same industry, is expected to report quarterly earnings of $1.32 per share, reflecting a year-over-year change of +12.8% [5]

Financial Performance - Net income for Q3 2024 decreased to $6,365,000, down 16.15% from $7,591,000 in Q3 2023[2] - Net income for the nine months ended September 30, 2024, was $17,784, a decrease of 10.57% from $19,887 in the same period of 2023[7] - Basic earnings per common share for the three months ended September 30, 2024, was $0.41, up from $0.35 in the same quarter of the previous year[11] Income and Expenses - Net interest income after provision for credit losses was $18,949,000, a decrease of 9.28% compared to $20,888,000 in the previous year[2] - Noninterest income increased by 9.92% to $7,133,000 compared to $6,489,000 in the same quarter last year[2] - Total noninterest expense for the nine months ended September 30, 2024, was $55,828, slightly up from $55,749, indicating a marginal increase of 0.14%[31] Assets and Liabilities - Total assets increased by 7.52% to $2,670,822,000 from $2,483,949,000 year-over-year[4] - Total liabilities increased by 6.68% to $2,393,517,000 from $2,243,744,000[5] - Total assets grew to $2,561,690, up from $2,454,599, reflecting a year-over-year increase of 4.36%[29] Loans and Credit Losses - Provision for credit losses was $1,207,000, a significant increase from a credit of $(1,225,000) in Q3 2023, reflecting a 198.53% change[2] - The allowance for credit losses on loans increased by 13.03% to $20,442 from $18,085 year-over-year[7] - Total loans past due 30-89 days and still accruing reached $15,906 thousand as of September 30, 2024, compared to $3,088 thousand in June 2024[19] Equity and Book Value - Common stockholders' equity, excluding accumulated other comprehensive loss, increased to $307,369,000, up from $304,582,000, reflecting a growth of 0.6%[13] - Tangible common book value per share increased by 19.14% to $14.44 from $12.12 in the previous year[7] - Total stockholders' equity increased to $268,387,000 as of September 30, 2024, from $258,420,000 in the previous quarter, reflecting a growth of 3.76%[26] Deposits and Funding - The company reported a total of $2,135,879,000 in deposits, an increase from $2,059,309,000, reflecting a growth of 3.7%[13] - Total Deposits for C&N Bank increased to $2,152,136 million as of September 30, 2024, up from $2,074,806 million in June 30, 2024[34] - Estimated Total Uninsured Deposits rose to $655,569 million, compared to $605,765 million in the previous quarter[34] Interest Rates and Spreads - The average rate of return on loans receivable for the three months ended September 30, 2024, was 6.08%, up from 6.03% in the previous quarter[26] - The interest rate spread for the three months ended September 30, 2024, was 2.55%, down from 2.61% in the previous quarter[26] - The interest rate spread decreased to 2.60% from 2.99% year-over-year[29] Trust and Noninterest Income - Trust revenue for the nine months ended September 30, 2024, was $5,857, compared to $5,500 in the previous year, marking a 6.51% increase[30] - Brokerage and insurance revenue increased to $1,589, up from $1,189, representing a growth of 33.67%[30] - Noninterest income for the nine months ended September 30, 2024, reached $21,662, up from $18,733, reflecting a growth of 10.34%[30] Market Value and Stock Performance - The market value per common share increased by 12.19% to $19.69 from $17.55 year-over-year[7] - Total earning assets increased to $2,400,684, up from $2,332,246, representing a growth of 2.93% year-over-year[29] - The total loans receivable as of September 30, 2024, was $1,888,470,000, showing a slight increase from $1,883,386,000 in the previous quarter[26]

Net Income and Earnings - Second quarter 2024 net income was $6,113,000, or $0.40 per diluted share, compared to $6,043,000, or $0.39 per diluted share, in the second quarter 2023[110] - Net income for the six months ended June 30, 2024 was $11,419,000, or $0.74 per diluted share, compared to $12,296,000, or $0.80 per diluted share, for the same period in 2023[114] Net Interest Income and Margin - Net interest income for Q2 2024 was $19,445,000, a decrease of $917,000 from Q2 2023, with a net interest margin of 3.31%, down from 3.53% in Q2 2023[110] - Net interest income for the six months ended June 30, 2024 was $38,486,000, a decrease of $2,657,000 from the same period in 2023, with a net interest margin of 3.30%, down from 3.62%[114] - Fully taxable equivalent net interest income decreased by $954,000 (4.6%) to $19,647,000 in Q2 2024 compared to $20,601,000 in Q2 2023[128] - Fully taxable equivalent net interest income decreased by $2,768,000 (6.6%) to $38,883,000 in 2024 compared to 2023, driven by a $10,169,000 increase in interest expense and a $7,401,000 increase in interest income[135] - Net Interest Margin decreased to 3.30% in 2024 from 3.62% in 2023, while the Interest Rate Spread decreased to 2.62% from 3.14%[135] - Net Interest Income/Earning Assets decreased to 3.31% in Q2 2024 from 3.53% in Q2 2023[145] - Interest Rate Spread decreased to 2.61% in Q2 2024 from 2.98% in Q2 2023[145] - Net interest income for the six months ended June 30, 2024 decreased by $2.768 million compared to the same period in 2023, driven by a $1.236 million increase in volume and a $4.004 million decrease in rate changes[147] Provision for Credit Losses - Provision for credit losses in Q2 2024 was $565,000, a decrease of $247,000 compared to $812,000 in Q2 2023, with the allowance for credit losses at 1.08% of gross loans receivable[110] - Provision for credit losses for the six months ended June 30, 2024 was $1,519,000, an increase of $1,059,000 from the same period in 2023, with net charge-offs totaling $352,000, or 0.04% of average loans receivable[115] - Provision for credit losses was $565,000 for Q2 2024, a decrease of $247,000 compared to $812,000 in Q2 2023[172] - Allowance for credit losses (ACL) as a percentage of gross loans receivable increased to 1.08% at June 30, 2024 from 1.04% at December 31, 2023[172] - ACL on individually evaluated loans increased to $1,230,000 at June 30, 2024 from $743,000 at December 31, 2023, primarily due to two borrowers[173] - ACL on collectively evaluated commercial loans increased by $1,225,000, while ACL on residential mortgage loans decreased by $652,000 from December 31, 2023 to June 30, 2024[174] - The allowance for credit losses on loans increased to $20.382 million at the end of June 2024, up from $19.056 million at the end of June 2023[178] - The total allowance for credit losses on loans was $20.382 million at June 30, 2024, with commercial real estate - nonowner occupied loans accounting for $11.684 million[179] Noninterest Income - Noninterest income in Q2 2024 increased by $1,220,000 to $7,854,000, driven by higher trust revenue, brokerage and insurance revenue, and net gains from loan sales[112] - Noninterest income for the six months ended June 30, 2024 increased by $2,279,000 to $14,529,000, driven by higher earnings from life insurance, trust revenue, and brokerage and insurance revenue[115] - Trust revenue increased by $210,000 (11.6%) to $2,014,000 in Q2 2024 compared to $1,804,000 in Q2 2023[121] - Brokerage and insurance revenue grew by $162,000 (44.4%) to $527,000 in Q2 2024 from $365,000 in Q2 2023[121] - Net gains from sales of loans surged by $96,000 (69.1%) to $235,000 in Q2 2024 compared to $139,000 in Q2 2023[121] - Total noninterest income rose by $1,220,000 (18.4%) to $7,854,000 in Q2 2024 from $6,634,000 in Q2 2023[121] Noninterest Expense - Noninterest expense in Q2 2024 increased by $533,000 to $19,255,000, with salaries and employee benefits expense rising by $246,000, or 2.3%[112] - Noninterest expense for the six months ended June 30, 2024 decreased by $250,000 to $37,559,000, with a reduction in legal fees and professional fees contributing to the decrease[116] Interest Income and Expense - Interest income increased by $3,278,000 (11.6%) to $31,528,000 in Q2 2024 from $28,250,000 in Q2 2023[129] - Interest expense on deposits increased by $4,215,000 to $11,881,000 in Q2 2024 from $7,649,000 in Q2 2023[133] - Interest expense on long-term borrowings increased by $799,000 to $1,855,000 in Q2 2024 from $1,056,000 in Q2 2023[134] - Interest income from loans receivable increased by $7,387,000 in 2024, with the average yield on loans rising to 5.97% from 5.53% in 2023[136] - Interest expense on deposits increased by $9,876,000 in 2024, with the average rate on interest-bearing deposits rising to 2.41% from 1.20% in 2023[140] - Interest expense on long-term borrowings (FHLB advances) increased by $1,574,000 to $3,311,000 in 2024, with the average balance rising to $159,063,000 from $95,899,000 in 2023[141] - Total interest income for the six months ended June 30, 2024 increased by $7.401 million, with a $2.778 million increase in volume and a $4.623 million increase in rate changes[147] - Total interest-bearing deposits increased by $9.876 million for the six months ended June 30, 2024, with a $1.649 million increase in volume and an $8.227 million increase in rate changes[147] Loans and Deposits - Average outstanding loans receivable grew by $95,535,000 (5.3%) to $1,883,386,000 in Q2 2024 from $1,787,851,000 in Q2 2023[129] - Average total deposits rose by $68,115,000 (3.5%) to $2,016,520,000 in Q2 2024 from $1,948,405,000 in Q2 2023[133] - Average outstanding loans receivable increased by $114,288,000 (6.5%) to $1,871,316,000 in 2024, driven by growth in commercial real estate and other commercial loans[136] - Average total deposits increased by $69,086,000 (3.6%) to $2,008,899,000 in 2024, with brokered deposits averaging $76,315,000 at a 5.21% interest rate[140] - Loans receivable grew to $1,883,386K in Q2 2024, up from $1,787,851K in Q2 2023, with a rate of return increasing from 5.62% to 6.03%[145] - Interest-bearing deposits rose to $1,522,598K in Q2 2024, with a cost of funds increasing to 2.46% from 1.45% in Q2 2023[145] - Total Interest-bearing Liabilities increased to $1,765,318K in Q2 2024, with a cost of funds rising to 2.71% from 1.86% in Q2 2023[145] - Taxable loans receivable reached $1,792,556K in Q2 2024, up from $1,697,740K in Q2 2023, with a rate of return increasing from 5.76% to 6.17%[145] - Time deposits grew to $457,885K in Q2 2024, with a cost of funds increasing to 3.96% from 2.58% in Q2 2023[145] - Total Assets increased to $2,547,632K in Q2 2024 from $2,466,317K in Q2 2023[145] - Total loans increased to $1,893.2 million at June 30, 2024, up from $1,848.1 million at June 30, 2023, and $1,740.0 million at December 31, 2023[169] - Deposits increased by $44.503 million (2.2%) to $2.059 billion at June 30, 2024, compared to December 31, 2023[187] - Estimated uninsured deposits totaled $605.8 million (29.2% of total deposits) at June 30, 2024, compared to $592.2 million (29.2%) at December 31, 2023[188] Credit Quality and Nonperforming Assets - Total nonperforming assets were $19.8 million at June 30, 2024, up from $18.8 million at December 31, 2023, representing 0.76% of total assets[175] - Net charge-offs in the first six months of 2024 totaled $352,000, or 0.02% of average outstanding loans, which is low by historical standards[175] - Nonaccrual loans increased by $4.4 million from December 31, 2023, while loans past due 90 days or more still accruing decreased by $3.2 million[175] - The company continues to closely monitor commercial loan relationships for credit losses and will adjust estimates of loss and nonaccrual status as appropriate[177] - Net charge-offs as a percentage of average loans decreased to 0.02% in June 2024 from 0.01% in June 2023[178] - Total nonperforming loans as a percentage of loans increased to 1.04% at June 30, 2024, compared to 0.99% at December 31, 2023[182] Tax and Deferred Tax Assets - The income tax provision for the six months ended June 30, 2024 was $2.518 million, $310,000 lower than the same period in 2023, due to lower pre-tax income[148] - The effective tax rate for the six months ended June 30, 2024 was 18.1%, compared to 18.7% for the same period in 2023[148] - The net deferred tax asset at June 30, 2024 was $18.375 million, an increase from $17.441 million at December 31, 2023[149] - Unrealized holding losses on securities contributed $11.089 million to deferred tax assets at June 30, 2024, up from $10.335 million at December 31, 2023[149] - Total deferred tax liabilities decreased to $2.650 million at June 30, 2024 from $2.784 million at December 31, 2023[149] - Management believes the net deferred tax asset of $18.375 million at June 30, 2024 is fully realizable, but any future adjustments could negatively impact earnings[150] Securities and Investments - The fair value of available-for-sale securities was $401.145 million at June 30, 2024, representing an 11.6% decrease from the amortized cost basis of $453.944 million[154] - The market yield on the 5-year U.S. Treasury Note increased to 4.33% at June 30, 2024, up from 3.84% at December 31, 2023[154] - Interest income from available-for-sale debt securities decreased by $321,000 in 2024, with the average balance declining to $459,070,000 from $531,981,000 in 2023[139] - Interest income from interest-bearing due from banks increased by $312,000 to $899,000 in 2024, with the average balance rising to $37,932,000 from $30,744,000 in 2023[137] Loan Portfolio Composition - Commercial loans represented 75% of the loan portfolio at June 30, 2024, while residential loans accounted for 22%[159] - Non-owner occupied commercial real estate loans for office space utilization totaled $96.642 million, or 5.1% of gross loans receivable at June 30, 2024[160] - Participation loans outstanding decreased to $36.383 million at June 30, 2024 from $38.652 million at December 31, 2023[161] - Commitments to extend credit decreased to $387.563 million at June 30, 2024 from $395.997 million at December 31, 2023[162] - Standby letters of credit increased to $57.532 million at June 30, 2024 from $19.158 million at December 31, 2023[162] - The allowance for off-balance sheet credit exposures was $683,000 at June 30, 2024, down from $690,000 at December 31, 2023[164] - Outstanding balances of loans sold and serviced through the MPF Xtra and Original programs totaled $321.136 million at June 30, 2024[167] - The total outstanding balance of repurchased loans due to noncompliance was $1.428 million at June 30, 2024, down from $1.457 million at December 31, 2023[166] - Non-owner occupied commercial real estate loans totaled $489.5 million at June 30, 2024, representing 20.2% of non-owner occupied CRE and 5.2% of total loans[170] Liquidity and Funding - The Corporation's outstanding credit facilities with the Federal Home Loan Bank of Pittsburgh totaled $223.853 million at June 30, 2024[185] - The Corporation's highly liquid sources of available funds totaled $1.1 billion at June 30, 2024, covering 173.7% of uninsured deposits and 235.1% of total uninsured and uncollateralized deposits[189]

To help address this growing need, C&N, a leading community bank, has introduced MoneyArmor. This comprehensive fraud and cybersecurity program is designed to empower businesses and individuals of all ages with the tools and knowledge to safeguard their finances and navigate the digital landscape with confidence. Combating Fraud Additional key features include: More Than Security: A Financial Wellness Movement Take Action: About C&N: C&N is an independent community financial services company providing compl ...

EXHIBIT 99.2 – Supplemental, Unaudited Financial Information CONDENSED, CONSOLIDATED EARNINGS INFORMATION (Dollars In Thousands, Except Per Share Data) (Unaudited) | | | 2nd | | 2nd | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | QUARTER | | QUARTER | | | | | | | 2024 | | 2023 | | $ Incr. (Decr.) | % Incr. (Decr.) | | Interest and Dividend Income | $ | 31,326 | $ | 28,011 | $ | 3,315 | 11.83 % | | Interest Expense | | 11,881 | | 7,649 | | 4,232 | 55.33 % | | Net Interest Income | | 19,445 | ...

Shares of Citizens & Northern rallied for the fourth straight trading session. With the Federal Reserve keeping an eye on unemployment reports and cooling inflation numbers, market participants are projecting interest rate cuts as early as during the September FOMC meeting. Thus, this is a positive development for banks that are already reeling under the Fed's aggressive monetary tightening. As the rates come down, so will banks' funding costs. Hence, the investors turned bullish on banking sector stocks, d ...

Senior Partners Bradford, Sullivan, Susquehanna, and Tioga County Area Agency on Aging – supported by our Towanda, Wellsboro Branch Second Floor & Wysox Teams Bradford Hills Nursing and Rehabilitation Center – supported by our East Smithfield Team Canton Active Living Center – supported by our Troy Team Community Action Partnership of Lancaster County – supported by our Lancaster Team Coudersport Senior Center – supported by our Coudersport Team Crispus Attucks Active Living Center – supported by our York T ...

Financial Performance - Net income for Q1 2024 was $5,306,000, or $0.35 per diluted share, down from $6,253,000, or $0.40 per diluted share in Q1 2023, representing a decrease of 15.1%[114] - Noninterest income rose by $1,059,000 to $6,675,000 in Q1 2024, driven by increases in cash surrender value of life insurance and other noninterest income[119] - Noninterest expense decreased by $783,000 to $18,304,000 in Q1 2024, with significant reductions in other noninterest expenses and professional fees[119] - The income tax provision for Q1 2024 was $1,152,000, or 17.8% of pre-tax income, down from $1,409,000, or 18.4% of pre-tax income in Q1 2023[119] Interest Income and Expenses - Net interest income decreased by $1,740,000 to $19,041,000 in Q1 2024, with a net interest margin of 3.29%, down from 3.71% in Q1 2023[116] - Interest income totaled $30,531,000 in 2024, an increase of $4,123,000, or 15.6% from 2023[132] - Interest expense increased by $5,937,000 to $11,295,000 in 2024 from $5,358,000 in 2023[136] - The average rate on interest-bearing liabilities increased by 1.24%, while the average yield on earning assets increased by 0.56% in Q1 2024[116] Credit Losses and Allowances - Provision for credit losses increased to $954,000 in Q1 2024, compared to a credit of $352,000 in Q1 2023, reflecting a rise in qualitative factors and specific allowances on commercial loans[116] - The allowance for credit losses (ACL) as a percentage of gross loans receivable was 1.07% at March 31, 2024, compared to 1.05% at March 31, 2023[117] - The total allowance for credit losses at the end of Q1 2024 was $20,023,000, up from $19,208,000 at the end of 2023[180] - Net charge-offs for the first quarter of 2024 were $145,000, representing 0.01% of average loans, compared to $61,000 and 0.00% in the same period of 2023[179] Loan Portfolio - Average outstanding loans receivable increased by $133,383,000 (7.7%) to $1,859,246,000 in 2024 from $1,725,863,000 in 2023[133] - Commercial loans represented 75% of the loan portfolio as of March 31, 2024, while residential loans accounted for 22%[160] - The Corporation's total loans increased to $1,872,449,000 as of March 31, 2024, compared to $1,848,139,000 at December 31, 2023, reflecting a growth of approximately 1.3%[168] - Total nonperforming loans increased to $19,296,000 as of March 31, 2024, compared to $18,367,000 at December 31, 2023, with nonperforming loans as a percentage of total loans at 1.03%[183] Deposits and Funding - Average total deposits amounted to $2,001,278,000 for the first quarter of 2024, up $70,152,000 (3.6%) from the first quarter of 2023[137] - Total deposits decreased by $18,903,000 (0.9%) to $1,995,903,000 at March 31, 2024, with adjusted total deposits down by $23,925,000 (1.2%) excluding brokered deposits[190] - Estimated uninsured deposits totaled $568,085,000, or 28.2% of total deposits, down from $592,206,000 or 29.2% at December 31, 2023[191] - The Corporation's highly liquid available funding sources totaled $1.1 billion at March 31, 2024, which is 187.7% of uninsured deposits[192] Capital Adequacy - The Corporation's capital ratios as of March 31, 2024, exceeded the Board policy threshold levels, indicating compliance with capital adequacy requirements[196] - As of March 31, 2024, the consolidated total capital to risk-weighted assets ratio is 15.54%, exceeding the minimum requirement of 11%[197] - C&N Bank's Tier 1 capital to risk-weighted assets ratio is 13.67%, above the minimum requirement of 9%[197] - The Corporation's common equity tier 1 capital to risk-weighted assets ratio stands at 13.13%, surpassing the minimum requirement of 7.5%[197] Stock Repurchase and Dividends - The Corporation announced a treasury stock repurchase program allowing the repurchase of up to 750,000 shares, approximately 5% of outstanding shares[197] - Future dividend payments and stock repurchases are contingent upon maintaining a strong financial condition and regulatory capital requirements[198] - C&N Bank's capital conservation buffer is 6.77% as of March 31, 2024, well above the 2.5% threshold that would trigger payout limitations[200] Interest Rate Risk Management - The Corporation's interest rate risk management includes simulations to assess potential impacts on net interest income and economic value of equity[205] - The modeling results indicate that net interest income and economic value of equity are projected to decrease under both rising and falling interest rate scenarios[208] - The Corporation's available-for-sale debt securities are carried at fair value, with significant unrealized losses impacting stockholders' equity[209] - As of March 31, 2024, net interest income (NII) is projected to decrease by 18.0% to $68,158,000 with a +400 basis point change in interest rates[211]

EXHIBIT 99.2 – Supplemental, Unaudited Financial Information CONDENSED, CONSOLIDATED EARNINGS INFORMATION (Dollars In Thousands, Except Per Share Data) (Unaudited) | | | 1ST | | 1ST | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | QUARTER | | QUARTER | | | | | | | 2024 | | 2023 | | $ Incr. (Decr.) | % Incr. (Decr.) | | Interest and Dividend Income | $ | 30,336 | $ | 26,139 | $ | 4,197 | 16.06 % | | Interest Expense | | 11,295 | | 5,358 | | 5,937 | 110.81 % | | Net Interest Income | | 19,041 | ...

Citizens & Northern (CZNC) came out with quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.22%. A quarter ago, it was expected that this bank would post earnings of $0.45 per share when it actually produced earnings of $0.50, delivering a surprise of 11.11%.Over the last four quarters, the compan ...