Key Highlights

  • Record Net Income was USD 16.3 million, or USD 0.92 per share.
  • Net interest Margin rose to 4.13% from 3.62% a year earlier.
  • A Credit for credit losses of USD 3.2 million aided results.
  • The quarterly Dividend rose USD 0.02 to USD 0.30 per share.

Record Earnings

Citizens & Northern (NASDAQ:CZNC) announced third-quarter 2026 results on Thursday. Net income was a record USD 16,285,000, or USD 0.92 per diluted share, against USD 14,057,000, or USD 0.79, in the second quarter and USD 6,551,000, or USD 0.42, in the third quarter of 2025. Nine-month net income was USD 30,615,000, or USD 1.72 per share, against USD 18,961,000, or USD 1.22.

Pre-tax, pre-provision net revenue, a non-GAAP measure, was USD 17,464,000 against USD 15,815,000 in the second quarter and USD 11,278,000 a year earlier. Nine-month figure was USD 47,421,000 against USD 29,702,000. The higher results reflect the Oct. 1, 2025 Acquisition of Susquehanna Community Financial.

Margin and Efficiency

Net interest income rose USD 587,000 from the second quarter and USD 7,942,000 from the third quarter of 2025. The net interest margin was 4.13%, up from 4.07% in the second quarter and 3.62% a year earlier. For the nine months, net interest income was USD 24,897,000 higher than in the prior-year period. The efficiency ratio fell to 56.11%.

Credit Costs

The quarter included a credit for credit losses of USD 3,171,000, caused mainly by changes in qualitative factors. President and Chief Executive Officer Brad Scovill said nonperforming loans fell as workouts progressed. Net charge-offs were 0.07% of average loans. The nine-month provision was USD 8,585,000, against USD 4,753,000, and the company tied it to elevated net charge-offs, primarily from one non-owner occupied Commercial Real Estate loan.

Because the quarter carried a credit rather than a provision, pre-tax, pre-provision net Revenue of USD 17.5 million is a cleaner comparison than net income, and it rose USD 1.6 million from the second quarter.

Balance Sheet

Gross loans receivable were USD 2,331,395,000, down USD 17,452,000 from June 30 on payoffs of several larger commercial loans, and up USD 386,288,000 from a year earlier. The Susquehanna acquisition added USD 393,587,000 of loans on Oct. 1, 2025. Average loans fell USD 43,494,000, or 7.3% annualized, from the second quarter, and rose USD 452,728,000, or 23.7%, for the nine months.

Total Assets were USD 3,150,204,000, against USD 3,151,984,000 in June and USD 2,664,033,000 a year earlier. Available-for-sale Debt securities were USD 490,474,000, and cash and due from banks were USD 99,992,000. Liquidity sources of USD 1.384 billion were 170.3% of uninsured deposits and 219.0% of uninsured and uncollateralized deposits. Average loans receivable are the measure that shows the effect of the Susquehanna acquisition, since the nine-month average rose 23.7% while the quarter-end balance rose 19.9% from a year earlier.

Dividend and Reference Points

The board declared a regular quarterly dividend of USD 0.30 per share, USD 0.02 above the prior payment, payable Nov. 13 to holders of record on Nov. 2. Net income of USD 16.3 million is 2.5 times the USD 6.6 million reported a year earlier, while pre-tax, pre-provision net revenue rose 55%. Scovill said loans fell for the second consecutive quarter but that originations were at reasonable levels. Reference points include Loan balances after two quarters of decline, the margin at 4.13%, charge-offs at 0.07%, and whether the credit for credit losses recurs.