Citizens & Northern Corp (CZNC) reports earnings

Citizens & Northern Corp (CZNC) has submitted its 10-K filing for the fiscal year ended December 31, 2024.

The filing reports an increase in net income to $25,958,000, or $1.69 per diluted share, compared to $24,148,000, or $1.57 per diluted share, in the previous year. The increase is attributed to higher noninterest income and a lower provision for income taxes.

Net interest income decreased by $1,285,000 to $79,115,000, with the net interest margin declining to 3.30% from 3.47% in the prior year. This was due to a 0.75% increase in the average rate on interest-bearing liabilities, offsetting a 0.43% increase in the average yield on earning assets.

The provision for credit losses increased to $2,195,000 from $186,000 in 2023, reflecting adjustments for qualitative factors and changes in economic forecasts.

Noninterest income rose by $4,792,000 to $29,209,000, driven by higher trust revenue, brokerage and insurance revenue, and a lack of net losses on available-for-sale debt securities, which had negatively impacted the previous year's results.

Noninterest expense remained relatively stable at $74,258,000, with a slight increase of $110,000 from the prior year. Notable changes included a decrease in other operational losses and professional fees, offset by higher salaries and employee benefits.

The effective income tax rate decreased to 18.6% from 20.8% in 2023, influenced by non-taxable income from bank-owned life insurance and other factors.

Total assets at year-end were $2.6 billion, up 3.8% from the previous year, with total deposits increasing by 3.9% to $2.1 billion. The bank's loan portfolio grew by 2.6% to $1.9 billion, with commercial loans representing 75% of the portfolio.

The filing also highlights the bank's liquidity position, with significant credit facilities and available-for-sale securities providing ample funding sources.

Citizens & Northern Corp's capital ratios exceed regulatory requirements, with the bank maintaining a strong capital conservation buffer to support future growth and dividend payments.

The filing outlines various risk factors, including interest rate risk, competition, and regulatory changes, which could impact future financial performance.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Citizens & Northern Corp annual 10-K report dated March 6, 2025. To report an error, please email [email protected].