Citizens & Northern(CZNC) - 2025 Q4 - Annual Results

Financial Performance - C&N's net income for Q4 2025 was $4,466,000, or $0.25 per diluted share, down from $6,551,000, or $0.42 per diluted share in Q3 2025 and $8,174,000, or $0.53 per diluted share in Q4 2024[2][9][11] - Adjusted earnings (non-GAAP) for Q4 2025, excluding merger-related expenses, were $9,966,000 or $0.56 per diluted share, compared to $7,248,000 or $0.47 per diluted share in Q3 2025[2][9] - Net income for the year ended December 31, 2025 was $23,427,000 or $1.46 per diluted share, down from $25,958,000 or $1.69 per diluted share in 2024[14] - Net income for the fourth quarter of 2025 was $4,466,000, a decrease of 45.36% from $8,174,000 in the fourth quarter of 2024[23] - Adjusted net income for the year 2025 increased by 14.71% to $29,777,000 from $25,958,000 in 2024[26] - Basic and diluted earnings per share decreased by 13.61% to $1.46 from $1.69 year-over-year[27] Revenue and Income Sources - Noninterest income for Q4 2025 was $8,360,000, an increase of $1,056,000 from Q3 2025, driven by contributions from former Susquehanna operations[2][12] - Noninterest income for the year ended December 31, 2025 totaled $30,814,000, an increase of $1,605,000 from 2024, including $665,000 from the Susquehanna acquisition[16] - Total noninterest income for the year ended December 31, 2025, reached $30,852, an increase from $29,209 in 2024, representing a growth of 5.63%[48] Loans and Assets - Total loans receivable increased by $409,258,000 from Q3 2025, with loans acquired from the Susquehanna merger amounting to $393,587,000[2][3] - Loans, net increased by 23.86% to $2,323,317,000 at December 31, 2025, compared to $1,875,813,000 at December 31, 2024[25] - Total assets were $3,132,469,000 at December 31, 2025, up from $2,610,653,000 at December 31, 2024[17] - Total assets increased to $3,132,469,000 as of December 31, 2025, up from $2,664,033,000 on September 30, 2025, representing a growth of 17.5%[32] - Total gross loans amounted to $2,354,365,000 as of December 31, 2025, indicating a significant increase from previous periods[33] Interest Income and Margin - Net interest income for Q4 2025 increased by $6,210,000 from Q3 2025, totaling $28,473,000, and was $8,000,000 higher than Q4 2024[2][9][11] - The net interest margin improved to 3.84% in Q4 2025, up from 3.62% in Q3 2025 and 3.30% in Q4 2024[2][10] - Net interest income for the year ended December 31, 2025, was $91,853,000, representing a 16.10% increase from $79,115,000 in 2024[23] - Net interest income as a percentage of earning assets improved to 3.61% from 3.30% year-over-year, indicating enhanced profitability[46] Credit Losses and Provisions - The provision for credit losses was $1,320,000 in Q4 2025, down from $2,354,000 in Q3 2025, with an allowance for credit losses on loans at 1.32% of gross loans receivable[2][12] - The provision for credit losses increased significantly to $6,073,000 in 2025, compared to $2,195,000 in 2024, marking a 176.67% increase[23] - The allowance for credit losses on loans increased by 54.97% to $31,048,000 from $20,035,000 in the previous year[26] Mergers and Acquisitions - C&N incurred pre-tax merger-related expenses of $7,940,000 for the year ended December 31, 2025, including $6,891,000 in Q4 2025[2][8] - The merger with Susquehanna Community Financial, completed on October 1, 2025, added approximately $596.2 million in total assets and $393.6 million in total loans[2][4] Equity and Capital - Total stockholders' equity increased to $341,714,000 at December 31, 2025, up 24.13% from $275,284,000 at December 31, 2024[20] - The company maintained regulatory capital ratios that exceeded all capital adequacy requirements and were classified as well-capitalized as of December 31, 2025[20] Liquidity and Deposits - Deposits totaled $2,564,716,000 at December 31, 2025, an increase of $398,918,000 from September 30, 2025, including $501,488,000 assumed in the merger[3][4] - Highly liquid available funding as a percentage of uninsured deposits was 148.7%, demonstrating strong liquidity management[50]