Citizens & Northern(CZNC) - 2025 Q2 - Quarterly Report

Part I. Financial Information This section presents the unaudited consolidated financial statements and management's discussion and analysis for Citizens & Northern Corporation Item 1. Financial Statements This section presents the unaudited consolidated financial statements and notes for the periods ended June 30, 2025, and December 31, 2024 Consolidated Balance Sheets (Unaudited) Unaudited consolidated balance sheets detailing assets, liabilities, and stockholders' equity for June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :-------------------------------- | :-------------------------- | :---------------------------- | | Assets | | | | Total cash and due from banks | $99,619 | $126,174 | | Available-for-sale debt securities | $406,052 | $402,380 | | Loans, net | $1,897,559 | $1,875,813 | | TOTAL ASSETS | $2,610,875 | $2,610,653 | | Liabilities | | | | Total deposits | $2,109,776 | $2,093,909 | | Total borrowings | $180,240 | $207,669 | | TOTAL LIABILITIES | $2,324,518 | $2,335,369 | | Stockholders' Equity | | | | TOTAL STOCKHOLDERS' EQUITY | $286,357 | $275,284 | - Total assets remained relatively stable at $2.61 billion from December 31, 2024, to June 30, 2025[8] - Total stockholders' equity increased by $11.07 million, or 4.0%, from $275.28 million to $286.36 million during the six-month period[8] Consolidated Statements of Income (Unaudited) Unaudited consolidated statements of income for the three-month and six-month periods ended June 30, 2025, and 2024 | Metric (Thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total interest and dividend income | $32,454 | $31,326 | $64,163 | $61,662 | | Total interest expense | $11,312 | $11,881 | $23,046 | $23,176 | | Net interest income | $21,142 | $19,445 | $41,117 | $38,486 | | Provision for credit losses | $2,354 | $565 | $2,590 | $1,519 | | Noninterest income | $8,142 | $7,854 | $15,150 | $14,529 | | Noninterest expense | $19,398 | $19,255 | $38,441 | $37,559 | | NET INCOME | $6,117 | $6,113 | $12,410 | $11,419 | | EARNINGS PER COMMON SHARE - BASIC AND DILUTED | $0.40 | $0.40 | $0.80 | $0.74 | - Net income for the three months ended June 30, 2025, was $6.117 million, a slight increase from $6.113 million in the same period of 2024[10] - For the six months ended June 30, 2025, net income increased by $0.991 million, or 8.7%, to $12.410 million compared to $11.419 million in 2024[10] - Basic and diluted EPS remained flat at $0.40 for the three-month period but increased to $0.80 from $0.74 for the six-month period[10] Consolidated Statements of Comprehensive Income (Unaudited) Unaudited consolidated statements of comprehensive income for the three-month and six-month periods ended June 30, 2025, and 2024 | Metric (Thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $6,117 | $6,113 | $12,410 | $11,419 | | Other comprehensive income (loss), net | $2,016 | $(655) | $6,087 | $(2,924) | | Comprehensive income | $8,133 | $5,458 | $18,497 | $8,495 | - Comprehensive income significantly increased for both the three-month and six-month periods ended June 30, 2025, primarily driven by a positive shift in other comprehensive income (loss) from available-for-sale debt securities[12] - For the six-month period, other comprehensive income, net, was $6.087 million in 2025, a substantial improvement from a loss of $2.924 million in 2024[12] Consolidated Statements of Cash Flows (Unaudited) Unaudited consolidated statements of cash flows for the six-month periods ended June 30, 2025, and 2024 | Cash Flow Activity (Thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $10,096 | $14,362 | | Net Cash Used in Investing Activities | $(20,709) | $(37,065) | | Net Cash (Used in) Provided by Financing Activities | $(15,692) | $66,487 | | (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | $(26,305) | $43,784 | | CASH AND CASH EQUIVALENTS, END OF PERIOD | $97,269 | $96,562 | - Net cash provided by operating activities decreased by $4.266 million in the first six months of 2025 compared to 2024[14] - Investing activities used less cash in 2025, while financing activities shifted from providing $66.487 million in cash in 2024 to using $15.692 million in 2025, primarily due to a net decrease in deposits and FHLB advances[14] Consolidated Statements of Changes in Stockholders' Equity (Unaudited) Unaudited consolidated statements of changes in stockholders' equity for the three-month and six-month periods ended June 30, 2025, and 2024 | Equity Component (Thousands) | Balance, Dec 31, 2024 | Net Income (6M 2025) | Other Comprehensive Income, net (6M 2025) | Cash Dividends Paid (6M 2025) | Balance, June 30, 2025 | | :----------------------------- | :-------------------- | :------------------- | :---------------------------------------- | :----------------------------- | :--------------------- | | Common Stock | $16,030 | - | - | - | $16,030 | | Paid-in Capital | $14