Citizens & Northern Corp (CZNC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Citizens & Northern Corp has a market cap of $137.3 million; its shares were traded at around $11.33 with a P/E ratio of 7.2 and P/S ratio of 1.7. The dividend yield of Citizens & Northern Corp stocks is 3.2%.
The fully taxable equivalent net interest margin was $11,227,000 in 2010, $370,000 (3.2%) lower than in 2009. As shown in Table IV, changes in volume had the effect of decreasing net interest income $471,000 in 2010 over 2009, and interest rate changes had the effect of increasing net interest income $101,000. The most significant components of the volume change in net interest income in 2010 were: a decrease in interest income of $869,000 attributable to a reduction in the balance of taxable available-for-sale securities, an increase in interest income of $435,000 attributable to growth in the tax-exempt portion of the available-for-sale securities portfolio, and a decrease in interest expense of $415,000 attributable to a reduction in the balance of long-term borrowed funds. The most significant components of the rate change in net interest income in 2010 were: a decrease in interest income of $815,000 attributable to lower rates earned on taxable available-for-sale securities and a decrease in interest expense of $1,034,000 due to lower rates paid on interest-bearing deposits. As presented in Table III, the “Interest Rate Spread” (excess of average rate of return on earning assets over average cost of funds on interest-bearing liabilities) was 3.49% in 2010, as compared to 3.38% in 2009.
Interest income totaled $16,487,000 in 2010, a decrease of 9.4% from 2009. Income from available-for-sale securities decreased $1,315,000 (21.1%), while interest and fees from loans decreased $394,000, or 3.3%. As indicated in Table III, total average available-for-sale securities (at amortized cost) in 2010 decreased to $414,823,000, a decrease of $49,125,000, or 10.6% from 2009. During 2009, the Corporation increased the size of its tax-exempt municipal security portfolio, while shrinking the taxable available-for-sale securities portfolio. The Corporation s yield on taxable securities fell in 2009 and 2010 primarily because of low market interest rates, including the effects of management s decision to limit purchases of taxable securities to investments that mature or are expected to repay a substantial portion of principal within approximately four years or less. The Corporation s yield on taxable securities was also negatively affected in 2010 by higher-than-expected prepayments on mortgage-backed securities; these prepayments were caused by procedural changes by the U.S. Government agencies that issued the securities. The average rate of return on available-for-sale securities was 4.80% for 2010 and 5.44% in 2009.
The average balance of interest-bearing due from banks, which in 2010 has consisted primarily of balances held by the Federal Reserve, increased to $66,887,000 in 2010 from $7,964,000 in 2009. The average balance of federal funds sold decreased to $60,000 in 2010 from $19,231,000 in 2009. Although the rates of return are low, the Corporation has maintained relatively high levels of these liquid assets in 2009 and 2010 (as opposed to increasing long-term, available-for-sale securities at higher yields) due to management s concern about the possibility of substantial increases in interest rates later in 2010 or in 2011.
Interest expense fell $1,346,000, or 20.4%, to $5,260,000 in 2010 from $6,606,000 in 2009. Table III shows that the overall cost of funds on interest-bearing liabilities fell to 2.07% in 2010 from 2.63% in 2009.
Total average borrowed funds decreased $46,149,000 to $233,331,000 in 2010 from $279,480,000 in 2009. During 2009 and early 2010, the Corporation has generally paid off long-term borrowings as they matured using the cash flow received from loans, mortgage-backed securities, and growth in deposit balances. The average rate on borrowed funds was 3.66% in 2010, down from 3.81% in 2009. This change primarily reflects lower rates being paid on customer repurchase agreements, which make up most of the Corporation s short-term borrowed funds.
Read the The complete Report
Citizens & Northern Corp has a market cap of $137.3 million; its shares were traded at around $11.33 with a P/E ratio of 7.2 and P/S ratio of 1.7. The dividend yield of Citizens & Northern Corp stocks is 3.2%.
Highlight of Business Operations:
In the first quarter 2010, the Corporation reported positive net income available to common shareholders of $4,065,000, or $0.34 per share – basic and diluted, as compared to net income available to common shareholders of $4,242,000, or $0.42 per share - basic and diluted in the fourth quarter 2009 and as compared to a net loss of $7,334,000, or $0.82 per share in the first quarter 2009. For the first quarter 2010, the number of weighted average common shares outstanding increased to 12,113,584 from 10,141,903 in the immediately previous quarter, reflecting the issuance of shares of common stock in a public offering in December 2009 that raised capital of $21.4 million, net of offering costs. Results for the first quarter 2010 included pre-tax realized gains from available-for-sale securities of $58,000, while fourth quarter 2009 results included realized losses from available-for-sale securities of $318,000. First quarter 2009 results were significantly impacted by pre-tax realized losses from securities totaling $16,679,000.The fully taxable equivalent net interest margin was $11,227,000 in 2010, $370,000 (3.2%) lower than in 2009. As shown in Table IV, changes in volume had the effect of decreasing net interest income $471,000 in 2010 over 2009, and interest rate changes had the effect of increasing net interest income $101,000. The most significant components of the volume change in net interest income in 2010 were: a decrease in interest income of $869,000 attributable to a reduction in the balance of taxable available-for-sale securities, an increase in interest income of $435,000 attributable to growth in the tax-exempt portion of the available-for-sale securities portfolio, and a decrease in interest expense of $415,000 attributable to a reduction in the balance of long-term borrowed funds. The most significant components of the rate change in net interest income in 2010 were: a decrease in interest income of $815,000 attributable to lower rates earned on taxable available-for-sale securities and a decrease in interest expense of $1,034,000 due to lower rates paid on interest-bearing deposits. As presented in Table III, the “Interest Rate Spread” (excess of average rate of return on earning assets over average cost of funds on interest-bearing liabilities) was 3.49% in 2010, as compared to 3.38% in 2009.
Interest income totaled $16,487,000 in 2010, a decrease of 9.4% from 2009. Income from available-for-sale securities decreased $1,315,000 (21.1%), while interest and fees from loans decreased $394,000, or 3.3%. As indicated in Table III, total average available-for-sale securities (at amortized cost) in 2010 decreased to $414,823,000, a decrease of $49,125,000, or 10.6% from 2009. During 2009, the Corporation increased the size of its tax-exempt municipal security portfolio, while shrinking the taxable available-for-sale securities portfolio. The Corporation s yield on taxable securities fell in 2009 and 2010 primarily because of low market interest rates, including the effects of management s decision to limit purchases of taxable securities to investments that mature or are expected to repay a substantial portion of principal within approximately four years or less. The Corporation s yield on taxable securities was also negatively affected in 2010 by higher-than-expected prepayments on mortgage-backed securities; these prepayments were caused by procedural changes by the U.S. Government agencies that issued the securities. The average rate of return on available-for-sale securities was 4.80% for 2010 and 5.44% in 2009.
The average balance of interest-bearing due from banks, which in 2010 has consisted primarily of balances held by the Federal Reserve, increased to $66,887,000 in 2010 from $7,964,000 in 2009. The average balance of federal funds sold decreased to $60,000 in 2010 from $19,231,000 in 2009. Although the rates of return are low, the Corporation has maintained relatively high levels of these liquid assets in 2009 and 2010 (as opposed to increasing long-term, available-for-sale securities at higher yields) due to management s concern about the possibility of substantial increases in interest rates later in 2010 or in 2011.
Interest expense fell $1,346,000, or 20.4%, to $5,260,000 in 2010 from $6,606,000 in 2009. Table III shows that the overall cost of funds on interest-bearing liabilities fell to 2.07% in 2010 from 2.63% in 2009.
Total average borrowed funds decreased $46,149,000 to $233,331,000 in 2010 from $279,480,000 in 2009. During 2009 and early 2010, the Corporation has generally paid off long-term borrowings as they matured using the cash flow received from loans, mortgage-backed securities, and growth in deposit balances. The average rate on borrowed funds was 3.66% in 2010, down from 3.81% in 2009. This change primarily reflects lower rates being paid on customer repurchase agreements, which make up most of the Corporation s short-term borrowed funds.
Read the The complete Report
