Citizens & Northern(US:CZNC)2025-10-23 20:08Financial Performance - Net income for Q3 2025 was $6,551,000, or $0.42 diluted earnings per share, compared to $6,117,000, or $0.40 per diluted share in Q2 2025[4] - Adjusted earnings (non-GAAP) for Q3 2025 were $7,248,000, or $0.47 per diluted share, excluding merger-related expenses of $697,000[4] - Net income for Q3 2025 was $6,551,000, representing a 2.92% increase from $6,365,000 in Q3 2024[19] - Adjusted net income for Q3 2025 was $7,248,000, reflecting a 13.87% increase from $6,365,000 in Q3 2024[22] - Net income for the nine months ended September 30, 2025, was $1.22 per share, a 5.17% increase from $1.16 in 2024[23] Revenue and Income Sources - Noninterest income for the first nine months of 2025 was $22,454,000, an increase of $792,000 from the same period in 2024, with trust revenue increasing by $268,000 to $6,125,000[12] - Noninterest income for the three months ended September 30, 2025, was $7,304, compared to $7,133 in the same period of 2024, marking a 2.39% increase[26] - Total interest income for Q3 2025 reached $33,868,000, compared to $32,674,000 in Q2 2025 and $33,292,000 in Q3 2024, with a nine-month total of $98,462,000 versus $95,351,000 last year[36] Assets and Liabilities - Total assets amounted to $2,664,033,000 at September 30, 2025, up from $2,610,875,000 at June 30, 2025, but down from $2,670,822,000 at September 30, 2024[13] - Total liabilities increased to $2,337,287 thousand as of September 30, 2025, from $2,309,485 thousand at the end of June 2025[38] - Total stockholders' equity was $293,959,000 at September 30, 2025, up from $286,357,000 at June 30, 2025, and $277,305,000 at September 30, 2024[16] Loans and Credit Quality - Total loans receivable increased by $25,849,000 from June 30, 2025, with average loans receivable up 5.2% (annualized) in Q3 2025[4] - Nonperforming assets totaled $27,189,000, or 1.02% of total assets, at September 30, 2025, up from 0.98% at June 30, 2025[4] - The provision for credit losses was $2,163,000 in Q3 2025, down from $2,354,000 in Q2 2025, but up from $1,207,000 in Q3 2024[4] - Total nonperforming loans amounted to $26,787,000, which is 1.38% of total loans as of September 30, 2025, compared to 1.32% on June 30, 2025[31] Merger and Related Expenses - C&N completed its merger with Susquehanna Community Financial, Inc. on October 1, 2025, with shareholders exchanging shares at a ratio of 0.80[6] - Pre-tax merger-related expenses incurred in the first nine months of 2025 were $1,049,000, with total estimated expenses expected to reach approximately $7.5 million[7] - The company incurred merger-related expenses of $882,000 in Q3 2025, contributing to an adjusted net income that reflects these costs[35] Capital and Funding - C&N maintained highly liquid sources of available funds totaling $1.147 billion at September 30, 2025, which is 164.6% of uninsured deposits[13] - Highly liquid available funding was $1,146,789 as of September 30, 2025, showing a slight increase from $1,140,248 as of June 30, 2025[45] - The Tier 1 risk-based capital ratio improved to 13.48% as of September 30, 2025, compared to 13.31% in 2024, indicating stronger capital position[23] Efficiency and Cost Management - The efficiency ratio improved to 65.66% for the nine months ended September 30, 2025, down from 69.00% in 2024, indicating better cost management[23] - Total noninterest expense for the three months ended September 30, 2025, was $19,389, a slight decrease from $19,398 in the previous quarter[43] - Salaries and employee benefits increased to $11,293 for the three months ended September 30, 2025, compared to $11,067 in the previous quarter, reflecting a growth of 2.0%[43]