2 unchanged sentences
(In Thousands, Except Share and Per Share Data) (Unaudited)
−Removed: September 30,
+Added: (In Thousands, Except Share and Per Share Data)
Cash and due from banks:
4 unchanged sentences
Loans receivable
−Removed: Allowance for credit losses on loans
+Added: Allowance for credit losses
Bank-owned life insurance
21 unchanged sentences
authorized 30,000,000 shares;
−Removed: issued 16,030,172 and outstanding 15,275,686 at September 30, 2023;
+Added: issued 16,030,172 and outstanding 15,378,065 at March 31, 2024;
issued 16,030,172 and outstanding 15,295,135 at December 31, 2023
2 unchanged sentences
Treasury stock, at cost;
−Removed: 754,486 shares at September 30, 2023 and 511,353
+Added: 652,107 shares at March 31, 2024 and 735,037
shares at December 31, 2023
7 unchanged sentences
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
+Added: (In Thousands, Except Per Share Data)
INTEREST INCOME
11 unchanged sentences
Net interest income
−Removed: (Credit) provision for credit losses
−Removed: Net interest income after (credit) provision for credit losses
+Added: Provision (credit) for credit losses
+Added: Net interest income after provision (credit) for credit losses
NONINTEREST INCOME
24 unchanged sentences
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Consolidated Statements of Comprehensive Income (Loss)
+Added: Consolidated Statements of Comprehensive Income
(In Thousands) (Unaudited)
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
+Added: (In Thousands)
Available-for-sale debt securities:
−Removed: Unrealized holding losses on available-for-sale debt securities
+Added: Unrealized holding (losses) gains on available-for-sale debt securities
Reclassification adjustment for gains realized in income
−Removed: Other comprehensive loss on available-for-sale debt securities
+Added: Other comprehensive (loss) income on available-for-sale debt securities
Unfunded pension and postretirement obligations:
Changes from plan amendments and actuarial gains and losses
−Removed: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost
−Removed: Other comprehensive (loss) income on pension and postretirement obligations
−Removed: Other comprehensive loss before income tax
−Removed: Income tax related to other comprehensive loss
−Removed: Net other comprehensive loss
−Removed: Comprehensive (loss) income
+Added: Amortization of prior service cost and net actuarial loss and curtailment gain included in net periodic benefit cost
+Added: Other comprehensive loss on pension and postretirement obligations
+Added: Other comprehensive (loss) income before income tax
+Added: Income tax related to other comprehensive loss (income)
+Added: Net other comprehensive (loss) income
+Added: Comprehensive income
The accompanying notes are an integral part of these unaudited consolidated financial statements.
2 unchanged sentences
(In Thousands) (Unaudited)
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
+Added: Three Months Ended
+Added: (In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Adjustments to reconcile net income to net cash provided by operating activities:
−Removed: (Credit) provision for credit losses
+Added: Provision (credit) for credit losses
Realized gains on available-for-sale debt securities, net
5 unchanged sentences
Deferred income taxes
−Removed: Decrease (increase) in fair value of servicing rights
+Added: (Increase) decrease in fair value of servicing rights
Gains on sales of loans, net
2 unchanged sentences
Increase in accrued interest receivable and other assets
−Removed: Increase (decrease) in accrued interest payable and other liabilities
+Added: (Decrease) increase in accrued interest payable and other liabilities
Net Cash Provided by Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
−Removed: Purchase of certificates of deposit
Proceeds from maturities of certificates of deposit
6 unchanged sentences
Net increase in loans
−Removed: Proceeds from bank owned life insurance
Purchase of premises and equipment
Proceeds from sale of foreclosed assets
−Removed: Net Cash Used in Investing Activities
+Added: Net Cash (Used in) Provided by Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES:
−Removed: Net increase in deposits
−Removed: Net (decrease) increase in short-term borrowings
+Added: Net decrease in deposits
+Added: Net increase in short-term borrowings
Proceeds from long-term borrowings - FHLB advances
Repayments of long-term borrowings - FHLB advances
−Removed: Redemption of subordinated debt
−Removed: Sale of treasury stock
Purchases of treasury stock
Common dividends paid
−Removed: Net Cash Provided by Financing Activities
−Removed: INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
+Added: Net Cash Provided by (Used in) Financing Activities
+Added: DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
1 unchanged sentence
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
−Removed: (Decrease) increase in accrued purchase of available-for-sale debt securities
+Added: Decrease in accrued purchase of available-for-sale debt securities
Assets acquired through foreclosure of real estate loans
−Removed: Leased assets obtained in exchange for new operating lease liabilities
+Added: Increase in other assets from surrender of bank-owned life insurance
Interest paid
5 unchanged sentences
Comprehensive
−Removed: Three Months Ended September 30, 2023
−Removed: Balance, June 30, 2023
−Removed: Other comprehensive loss, net
−Removed: Cash dividends declared on common stock, $ .28 per share
−Removed: Shares issued for dividend reinvestment plan
−Removed: Forfeiture of restricted stock
−Removed: Stock-based compensation expense
−Removed: Purchase of restricted stock for tax withholding
−Removed: Treasury stock purchases
−Removed: Balance, September 30, 2023
−Removed: Three Months Ended September 30, 2022
−Removed: Balance, June 30, 2022
−Removed: Other comprehensive loss, net
−Removed: Cash dividends declared on common stock, $ .28 per share
−Removed: Shares issued for dividend reinvestment plan
−Removed: Forfeiture of restricted stock
−Removed: Stock-based compensation expense
−Removed: Purchase of restricted stock for tax withholding
−Removed: Treasury stock purchases
−Removed: Balance, September 30, 2022
−Removed: Comprehensive
−Removed: Nine Months Ended September 30, 2023
−Removed: (Loss) Income
+Added: Three Months Ended March 31, 2024
Balance, December 31, 2023
−Removed: Adoption of ASU 2016-13 (CECL)
Other comprehensive loss, net
5 unchanged sentences
Purchase of restricted stock for tax withholding
−Removed: Treasury stock purchases
−Removed: Balance, September 30, 2023
−Removed: Nine Months Ended September 30, 2022
+Added: Balance, March 31, 2024
+Added: Three Months Ended March 31, 2023
Balance, December 31, 2022
−Removed: Other comprehensive loss, net
+Added: Adoption of ASU 2016-13 (CECL)
+Added: Other comprehensive income, net
Cash dividends declared on common stock, $ .28 per share
Shares issued for dividend reinvestment plan
−Removed: Shares issued from treasury related to exercise of stock options
Restricted stock granted
3 unchanged sentences
Treasury stock purchases
−Removed: Balance, September 30, 2022
+Added: Balance, March 31, 2023
The accompanying notes are an integral part of these unaudited consolidated financial statements.
10 unchanged sentences
GAAP”) for a complete set of financial statements.
−Removed: Certain 2022 information has been reclassified for consistency with the 2023 presentation.
−Removed: Operating results reported for the nine-month period ended September 30, 2023 might not be indicative of the results for the year ending December 31, 2023.
+Added: Operating results reported for the three-month period ended March 31, 2024 might not be indicative of the results for the year ending December 31, 2024.
The Corporation evaluates subsequent events through the date of filing with the Securities and Exchange Commission.
RECENT ACCOUNTING PRONOUNCEMENTS
−Removed: The Financial Accounting Standards Board (FASB) issues Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification (ASC).
−Removed: This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on the consolidated financial statements issued in the near future.
−Removed: Recent Accounting Pronouncements - Adopted
+Added: The Financial Accounting Standards Board (FASB) issues Accounting Standard Updates (ASUs) to communicate changes to the FASB Accounting Standard Codification (ASC).
+Added: This section provides a summary description of recent ASUs that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the foreseeable future.
+Added: CECL ADOPTION
On January 1, 2023, the Corporation adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326):
1 unchanged sentence
This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology.
−Removed: CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposures such as unfunded commitments to extend credit.
−Removed: Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses.
−Removed: Purchased credit deteriorated (“PCD”) loans will receive an initial allowance at the acquisition date that represents an adjustment to the amortized cost basis of the loan, with no impact to earnings.
−Removed: In addition, CECL made changes to the accounting for available for sale debt securities.
−Removed: One such change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell.
−Removed: The Corporation adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023.
−Removed: As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities.
−Removed: Therefore, upon adoption of ASC 326, the Company determined that an allowance for credit losses on available for sale debt securities was not necessary.
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Effective January 1, 2023, the Corporation adopted ASC 326 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures.
−Removed: Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”).
−Removed: The following table illustrates the impact from the adoption of ASC 326:
+Added: The Corporation adopted ASC 326 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures.
+Added: The following table illustrates the impact on the allowance for credit losses from the adoption of ASC 326:
(In Thousands)
6 unchanged sentences
Retained earnings
−Removed: The Corporation adopted ASC 326 using the prospective transition approach for PCD assets that were previously classified as purchased credit impaired (“PCI”) under ASC 310-30.
−Removed: In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption.
−Removed: On January 1, 2023, the amortized cost basis of PCD assets was adjusted to establish the allowance for credit losses.
−Removed: Essentially all of the PCD loans were reported as nonaccrual loans at January 1, 2023 and September 30, 2023.
−Removed: ASU 2022-02, Financial Instruments-Credit Losses (Topic 326):
−Removed: Troubled Debt Restructurings and Vintage Disclosures.
−Removed: This update reduces the complexity of accounting for Troubled Debt Restructurings (“TDRs”) by eliminating certain accounting guidance, enhancing disclosures and improving the consistency of vintage disclosures.
−Removed: The Corporation adopted ASU 2022-02 on January 1, 2023.
−Removed: Changes in disclosure requirements in accordance with ASU 2022-02 are reflected in Note 6.
−Removed: The adoption of ASU 2022-02 did not have a material impact on the consolidated financial statements.
−Removed: Accounting Policies
−Removed: The Corporation’s significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in Note 1 of the audited consolidated financial statements and notes for the year ended December 31, 2022 and are contained in the Corporation’s Annual Report on Form 10-K.
−Removed: There have been no significant changes to the application of significant accounting policies since December 31, 2022, except for the following:
−Removed: Allowance for Credit Losses – Available-for-Sale Debt Securities
−Removed: For available-for-sale debt securities, management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation.
−Removed: If the Corporation has the intent to sell the security or it is more likely than not that the Corporation will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings.
−Removed: If either of the above criteria is not met, the Corporation evaluates whether the decline in fair value is the result of credit losses or other factors.
−Removed: The Corporation has elected the practical expedient of zero credit loss estimates for securities issued or guaranteed by U.S.
−Removed: Government entities or agencies.
−Removed: In making the credit loss assessment of securities not issued or guaranteed by U.S.
−Removed: Government entities or agencies, the Corporation may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security.
−Removed: If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss, limited by the amount that the fair value is less than the amortized cost basis.
−Removed: Any amount of unrealized loss that has not been recorded through an allowance for credit loss is recognized in other comprehensive income (loss).
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense.
−Removed: Losses are charged against the allowance for credit losses when management believes an available-for-sale debt security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met.
−Removed: At September 30, 2023, there was no allowance for credit losses related to the available-for-sale portfolio.
−Removed: Accrued interest receivable on available-for-sale debt securities totaled $ 2,688,000 at September 30, 2023 and was excluded from the estimate of credit losses.
−Removed: Allowance for Credit Losses on Loans
−Removed: The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans.
−Removed: Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed.
−Removed: Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
−Removed: The allowance for credit losses represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date.
−Removed: The allowance for credit losses is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
−Removed: Accrued interest receivable on loans totaled $ 6,590,000 at September 30, 2023 and was excluded from the estimate of credit losses.
−Removed: The allowance for credit losses (“ACL”) includes two primary components:
−Removed: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis), and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and which are individually evaluated for credit losses (individual basis).
−Removed: Evaluation of Expected Losses on Individual Loans
−Removed: Loans evaluated on an individual basis are identified based on a detailed assessment of certain larger loan relationships, and their related credit risk ratings, by a management committee referred to as the Watch List Committee.
−Removed: The allowance will be determined on an individual basis using the present value of expected cash flows or, for collateral-dependent loans, the fair value of the collateral as of the reporting date, less estimated selling costs, as applicable.
−Removed: If the fair value of the collateral is less than the amortized cost basis of the loan, the Corporation will charge off the difference between the fair value of the collateral, less costs to sell at the reporting date and the amortized cost basis of the loan.
−Removed: The scope of loans reviewed individually for credit loss each quarter includes all commercial loan relationships greater than $ 200,000 and any residential mortgage or consumer loans of $ 400,000 or more for which there is at least one extension of credit graded Special Mention, Substandard or Doubtful.
−Removed: Additionally, all PCD loans are evaluated individually for credit loss.
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Collective Evaluation of Expected Losses – Pool Basis
−Removed: The Corporation measures expected credit losses for loans on a pooled basis when similar risk characteristics exist.
−Removed: The Corporation has identified the following portfolio segments and calculates the allowance for credit losses for each using the weighted-average remaining maturity (“WARM”) method:
−Removed: Commercial real estate - nonowner occupied, further broken down into the following classes:
−Removed: Nonowner occupied
−Removed: Multi-family (5 or more) residential
−Removed: 1-4 Family - commercial purpose
−Removed: Commercial real estate - owner occupied
−Removed: All other commercial loans, further broken down into the following classes:
−Removed: Commercial and industrial
−Removed: Commercial lines of credit
−Removed: Political subdivisions
−Removed: Commercial construction and land
−Removed: Other commercial loans
−Removed: Residential mortgage loans, further broken down into the following classes:
−Removed: 1-4 Family – residential
−Removed: 1-4 Family residential construction and land
−Removed: Consumer loans, further broken down into the following classes:
−Removed: Consumer lines of credit (including HELOCs)
−Removed: All other consumer
−Removed: In determining the pools for collective evaluation, management uses a combination of loan purpose, collateral and payment type (for example, lines of credit vs.
−Removed: The pools identified are similar to the loan classes used in the Corporation’s financial reporting for several years, with several exceptions including the following which are of the most significance:
−Removed: ● Commercial real estate secured loans are broken out between non-owner occupied and owner-occupied
−Removed: ● Loans secured by 1-4 family residential mortgages are broken out between consumer-purpose and commercial-purpose
−Removed: ● Commercial lines of credit are broken out as an individual category
−Removed: Each of these changes was made to better sort loans into pools with similar risk and cash flow characteristics.
−Removed: Estimation Method - WARM (Weighted-Average Remaining Maturity Method)
−Removed: In applying the WARM method, for each pool identified above, the Corporation determined the annual net charge-offs as a percentage of average total loan balances (net charge-off percentage).
−Removed: In the January 1, 2023 calculation, the Corporation used the annualized net charge-off percentage over the prior 5 calendar years.
−Removed: In the September 30, 2023 calculation, the Corporation used the net charge-off percentage for the 5.75 -year period ended September 30, 2023.
−Removed: For each loan pool, the average annualized net charge-off percentage was multiplied by the estimated weighted-average remaining average life of the loans to calculate the loss rate.
−Removed: The calculation of the estimated weighted-average remaining life of each loan pool was based on instrument-level data, with contractual principal payments adjusted for the estimated impact of prepayments.
−Removed: Commercial lines of credit and other revolving credit facilities were generally assumed to be repaid after 1 year.
−Removed: The estimated weighted-average remaining life of the entire portfolio was calculated to be 4.16 years at September 30, 2023 and 4.36 years at January 1, 2023.
−Removed: Management determined that use of the Corporation’s net charge-off experience over a 5.75 -year period at September 30, 2023 and 5-year period at January 1, 2023 would provide a reasonable time period to include in the WARM expected loss rate calculations in relationship to the weighted-average life of the portfolio overall and to each of the pools.
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Qualitative Factors
−Removed: The allowance for credit losses calculation includes subjective adjustments for qualitative risk factors that are deemed likely to cause estimated credit losses to differ from historical experience.
−Removed: These qualitative adjustments generally increase allowance levels and include adjustments for factors deemed relevant, including:
−Removed: the nature and volume of portfolio changes, including loan portfolio growth;
−Removed: concentrations of credit based on loan type (such as non-owner occupied commercial real estate) or industry;
−Removed: the volume and severity of past due, nonaccrual or adversely classified loans;
−Removed: trends in real estate or other collateral values;
−Removed: lending policies and procedures, including changes in underwriting and collections practices;
−Removed: credit review function;
−Removed: lending, credit and other relevant management experience and risk tolerance;
−Removed: external factors and economic conditions not already captured.
−Removed: Economic Forecast
−Removed: ASC Topic 326 requires management to consider forward-looking information that is both reasonable and supportable and relevant to the collectability of cash flows.
−Removed: Reasonable and supportable forecasts may extend over the entire contractual term of a financial asset or a period shorter than the contractual term.
−Removed: In that regard, management has selected a forecast period of 2 years , which is shorter than the estimated weighted-average remaining life of the loan portfolio.
−Removed: The Corporation calculated an additional expected credit loss based on establishing a correlation between past loss experience and an economic statistic.
−Removed: This additional credit loss is added to the allowance calculation, conceptually for the first 2 years of the weighted-average remaining life of the portfolio after which time the credit loss for each pool is determined based on the WARM historical loss rate as adjusted for qualitative factors.
−Removed: Allowance for Credit Losses on Off-Balance Sheet Exposures
−Removed: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, commercial letters of credit and credit enhancement obligations related to residential mortgage loans sold with recourse.
−Removed: The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments.
−Removed: Such financial instruments are recorded when they are funded.
−Removed: The Corporation records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for unfunded commitments in the Corporation’s statements of income.
−Removed: The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees.
−Removed: The allowance for off-balance sheet exposures is included in accrued interest and other liabilities in the Corporation’s unaudited consolidated balance sheets and the related credit expense is recorded in the provision for credit losses in the unaudited consolidated statements of income.
+Added: Recent Issued but Not Yet Effective Accounting Pronouncements
+Added: In December 2023 , the FASB issued ASU 2023-09, Income Taxes (Topic 740):
+Added: Improvements to Income Tax Disclosures which improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction.
+Added: 2023-09 is effective for public business entities
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
+Added: for annual periods beginning after December 15, 2024.
+Added: The ASU may be adopted on a prospective or retrospective basis and early adoption is permitted.
+Added: The Corporation is currently evaluating the impact the new guidance will have on disclosures related to income taxes.
PER SHARE DATA
7 unchanged sentences
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
Dividends and undistributed earnings allocated to participating securities
10 unchanged sentences
Anti-dilutive stock options are excluded from earnings per share calculations.
−Removed: The weighted-average number of anti-dilutive instruments outstanding was 8,934 in the three-month period ended September 30, 2023 and 0 in the nine-month period ended September 30, 2023.
−Removed: There were no anti-dilutive instruments outstanding in the three-month and nine-month periods ended September 30, 2022.
+Added: There were no anti-dilutive instruments outstanding in the three-month periods ended March 31, 2024 and 2023.
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: COMPREHENSIVE INCOME (LOSS)
−Removed: Comprehensive income (loss) is the total of (1) net income, and (2) all other changes in equity from non-stockholder sources, which are referred to as other comprehensive income (loss).
+Added: COMPREHENSIVE INCOME
+Added: Comprehensive income is the total of (1) net income, and (2) all other changes in equity from non-stockholder sources, which are referred to as other comprehensive income (loss).
The components of other comprehensive income (loss), and the related tax effects, are as follows:
(In Thousands)
−Removed: Three Months Ended September 30, 2023
−Removed: Available-for-sale debt securities:
−Removed: Unrealized holding losses on available-for-sale debt securities
−Removed: Reclassification adjustment for gains realized in income
−Removed: Other comprehensive loss from available-for-sale debt securities
−Removed: Unfunded pension and postretirement obligations:
−Removed: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost
−Removed: Other comprehensive loss on unfunded retirement obligations
−Removed: Total other comprehensive loss
−Removed: (In Thousands)
−Removed: Three Months Ended September 30, 2022
−Removed: Available-for-sale debt securities:
−Removed: Unrealized holding losses on available-for-sale debt securities
−Removed: Reclassification adjustment for (gains) realized in income
−Removed: Other comprehensive loss from available-for-sale debt securities
−Removed: Unfunded pension and postretirement obligations:
−Removed: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost
−Removed: Other comprehensive loss on unfunded retirement obligations
−Removed: Total other comprehensive loss
−Removed: (In Thousands)
−Removed: Nine Months Ended September 30, 2023
+Added: Three Months Ended March 31, 2024
Available-for-sale debt securities:
4 unchanged sentences
Changes from plan amendments and actuarial gains and losses
−Removed: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost
+Added: Amortization of prior service cost and net actuarial loss and curtailment gain included in net periodic benefit cost
Other comprehensive loss on unfunded retirement obligations
1 unchanged sentence
(In Thousands)
−Removed: Nine Months Ended September 30, 2022
+Added: Three Months Ended March 31, 2023
Available-for-sale debt securities:
−Removed: Unrealized holding losses on available-for-sale debt securities
+Added: Unrealized holding gains on available-for-sale debt securities
Reclassification adjustment for (gains) realized in income
−Removed: Other comprehensive loss from available-for-sale debt securities
+Added: Other comprehensive income from available-for-sale debt securities
Unfunded pension and postretirement obligations:
1 unchanged sentence
Amortization of prior service cost and net actuarial loss included in net periodic benefit cost
−Removed: Other comprehensive income on unfunded retirement obligations
−Removed: Total other comprehensive loss
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
+Added: Other comprehensive loss on unfunded retirement obligations
+Added: Total other comprehensive income
The amounts shown in the table immediately above are included in the following line items in the consolidated statements of income:
3 unchanged sentences
Realized gains on available-for-sale debt securities, net
−Removed: Amortization of prior service cost and net actuarial loss included in net periodic benefit cost (before-tax)
+Added: Amortization of prior service cost and net actuarial loss and curtailment gain included in net periodic benefit cost (before-tax)
Other noninterest expense
1 unchanged sentence
Income tax provision
+Added: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
Changes in the components of accumulated other comprehensive (loss) income are as follows and are presented net of tax:
3 unchanged sentences
(Loss) Income
−Removed: Three Months Ended September 30, 2023
−Removed: Balance, beginning of period
−Removed: Other comprehensive loss during three months ended September 30, 2023
−Removed: Balance, end of period
−Removed: Three Months Ended September 30, 2022
−Removed: Balance, beginning of period
−Removed: Other comprehensive loss during three months ended September 30, 2022
−Removed: Balance, end of period
−Removed: (In Thousands)
−Removed: Comprehensive
−Removed: on Securities
−Removed: (Loss) Income
−Removed: Nine Months Ended September 30, 2023
+Added: Three Months Ended March 31, 2024
Balance, beginning of period
−Removed: Other comprehensive loss during nine months ended September 30, 2023
+Added: Other comprehensive loss during three months ended March 31, 2024
Balance, end of period
−Removed: Nine Months Ended September 30, 2022
+Added: Three Months Ended March 31, 2023
Balance, beginning of period
−Removed: Other comprehensive loss during nine months ended September 30, 2022
+Added: Other comprehensive income during three months ended March 31, 2023
Balance, end of period
CASH AND DUE FROM BANKS
−Removed: Cash and due from banks at September 30, 2023 and December 31, 2022 include the following:
+Added: Cash and due from banks at March 31, 2024 and December 31, 2023 include the following:
(In Thousands)
−Removed: September 30,
Cash and cash equivalents
1 unchanged sentence
Total cash and due from banks
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
Certificates of deposit are issues by U.S.
2 unchanged sentences
The Corporation maintains cash and cash equivalents with certain financial institutions in excess of the FDIC insurance limit.
−Removed: Amortized cost and fair value of available-for-sale debt securities at September 30, 2023 and December 31, 2022 are summarized as follows:
+Added: Amortized cost and fair value of available-for-sale debt securities at March 31, 2024 and December 31, 2023 are summarized as follows:
(In Thousands)
−Removed: September 30, 2023
+Added: March 31, 2024
Obligations of the U.S.
10 unchanged sentences
Total available-for-sale debt securities
+Added: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
(In Thousands)
12 unchanged sentences
Total available-for-sale debt securities
−Removed: The following table presents gross unrealized losses and fair value of available-for-sale debt securities with unrealized loss positions aggregated by length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022:
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: September 30, 2023
+Added: The following table presents gross unrealized losses and fair value of available-for-sale debt securities with unrealized loss positions aggregated by length of time that individual securities have been in a continuous unrealized loss position at March 31, 2024 and December 31, 2023:
+Added: March 31, 2024
Less Than 12 Months
12 unchanged sentences
Private label commercial mortgage-backed securities
−Removed: Total temporarily impaired available-for-sale debt securities
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
14 unchanged sentences
Private label commercial mortgage-backed securities
−Removed: Total temporarily impaired available-for-sale debt securities
Gross realized gains and losses from available-for-sale debt securities were as follows:
1 unchanged sentence
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
Gross realized gains from sales
1 unchanged sentence
Net realized gains
−Removed: The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of September 30, 2023.
+Added: The amortized cost and fair value of available-for-sale debt securities by contractual maturity are shown in the following table as of March 31, 2024.
Actual maturities may differ from contractual maturities because counterparties may have the right to call or prepay obligations with or without call or prepayment penalties.
(In Thousands)
−Removed: September 30, 2023
+Added: March 31, 2024
Due in one year or less
12 unchanged sentences
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Investment securities carried at $ 242,190,000 at September 30, 2023 and $ 277,302,000 at December 31, 2022 were pledged as collateral for public deposits, trusts and certain other deposits as provided by law.
+Added: Investment securities carried at $ 183,661,000 at March 31, 2024 and $ 232,437,000 at December 31, 2023 were pledged as collateral for public deposits, trusts and certain other deposits as provided by law.
See Note 8 for information concerning securities pledged to secure borrowing arrangements and Note 11 for information related to securities pledged against interest rate swap obligations.
−Removed: A summary of information management considered in evaluating debt and equity securities for credit losses at September 30, 2023 and December 31, 2022 is provided below.
+Added: A summary of information management considered in evaluating debt and equity securities for credit losses at March 31, 2024 and December 31, 2023 is provided below.
Debt Securities
−Removed: As reflected in the table above, gross unrealized holding losses on available-for-sale debt securities totaled $ 76,416,000 at September 30, 2023 and $ 64,082,000 at December 31, 2022.
−Removed: At September 30, 2023, the Corporation does not have the intent to sell, nor is it more likely than not it will be required to sell, these securities before it is able to recover the amortized cost basis.
−Removed: The unrealized holding losses were consistent with significant increases in market interest rates that occurred in 2022 and 2023.
−Removed: At September 30, 2023 and December 31, 2022, management performed an assessment for possible credit losses of the Corporation’s debt securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources.
−Removed: At September 30, 2023 and December 31, 2022, all of the Corporation’s holdings of bank holding company debt securities, obligations of states and political subdivisions and private label commercial mortgage-backed securities were investment grade and there have been no payment defaults.
−Removed: Based on the results of the assessment, there was no ACL required on available-for-sale debt securities in an unrealized loss position at September 30, 2023 and December 31, 2022.
+Added: As reflected in the table above, gross unrealized holding losses on available-for-sale debt securities totaled $ 52,272,000 at March 31, 2024 and $ 49,564,000 at December 31, 2023.
+Added: At March 31, 2024, the Corporation does not have the intent to sell, nor is it more likely than not it will be required to sell, these securities before it is able to recover the amortized cost basis.
+Added: The unrealized holding losses were consistent with significant increases in market interest rates that have occurred subsequent to the purchase of most of the securities.
+Added: At March 31, 2024 and December 31, 2023, management performed an assessment for possible credit losses of the Corporation’s debt securities on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources.
+Added: At March 31, 2024 and December 31, 2023, all of the Corporation’s holdings of bank holding company debt securities, obligations of states and political subdivisions and private label commercial mortgage-backed securities were investment grade and there have been no payment defaults.
+Added: Based on the results of the assessment, there was no allowance for credit losses (“ACL”) required on available-for-sale debt securities in an unrealized loss position at March 31, 2024 and December 31, 2023.
Equity Securities
2 unchanged sentences
There is no active market for FHLB-Pittsburgh stock, and it must ordinarily be redeemed by FHLB-Pittsburgh in order to be liquidated.
−Removed: C&N Bank’s investment in FHLB-Pittsburgh stock, included in other assets in the consolidated balance sheets, was $ 14,570,000 at September 30, 2023 and $ 14,168,000 at December 31, 2022.
−Removed: The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at September 30, 2023 and December 31, 2022.
+Added: C&N Bank’s investment in FHLB-Pittsburgh stock, included in other assets in the consolidated balance sheets, was $ 16,266,000 at March 31, 2024 and $ 15,214,000 at December 31, 2023.
+Added: The Corporation evaluated its holding of FHLB-Pittsburgh stock for impairment and deemed the stock to not be impaired at March 31, 2024 and December 31, 2023.
In making this determination, management concluded that recovery of total outstanding par value, which equals the carrying value, is expected.
3 unchanged sentences
There is no active market for Federal Reserve Bank stock, and it must ordinarily be redeemed by the Federal Reserve Bank of Philadelphia in order to be liquidated.
−Removed: C&N Bank’s investment in Federal Reserve Bank stock, included in other assets in the consolidated balance sheets, was $ 6,243,000 at September 30, 2023.
−Removed: The Corporation has a marketable equity security included in other assets in the consolidated balance sheets with a carrying value of $ 832,000 at September 30, 2023 and $ 859,000 December 31, 2022, consisting exclusively of one mutual fund.
−Removed: There was an unrealized loss on the mutual fund of $ 168,000 at September 30, 2023 and $ 141,000 at December 31, 2022.
−Removed: Changes in the unrealized gains or losses on this security, which are included in other noninterest income in the consolidated statements of income, were a loss of $ 27,000 in the third quarter 2023 and for the nine-month period ended September 30, 2023, a loss of $ 38,000 in the third quarter 2022 and a loss of $ 114,000 in the nine-month period ended September 30, 2022.
+Added: C&N Bank’s investment in Federal Reserve Bank stock, included in other assets in the consolidated balance sheets, was $ 6,266,000 at March 31, 2024 and $ 6,252,000 at December 31, 2023.
+Added: The Corporation has a marketable equity security included in other assets in the consolidated balance sheets with a carrying value of $ 862,000 at March 31, 2024 and $ 871,000 December 31, 2023, consisting exclusively of one mutual fund.
+Added: There was an unrealized loss on the mutual fund of $ 138,000 at March 31, 2024 and $ 129,000 at December 31, 2023.
+Added: Changes in the unrealized gains or losses on this security, which are included in other noninterest income in the consolidated statements of income, were a loss of $ 9,000 in the first quarter 2024 compared to a gain of $ 14,000 in the first quarter 2023.
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
LOANS AND ALLOWANCE FOR CREDIT LOSSES
−Removed: Loans receivable at September 30, 2023 and December 31, 2022 are summarized as follows:
+Added: Loans receivable at March 31, 2024 and December 31, 2023 are summarized as follows:
Summary of Loans by Type
(In Thousands)
−Removed: September 30,
Commercial real estate - non-owner occupied
4 unchanged sentences
allowance for credit losses on loans
−Removed: (1) Total loans at December 31, 2022 include purchased credit impaired loans of $ 1,027,000 .
−Removed: In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of $ 4,456,000 at September 30, 2023 and $ 4,725,000 at December 31, 2022.
+Added: In the table above, outstanding loan balances are presented net of deferred loan origination fees, net, of $ 4,482,000 at March 31, 2024 and $ 4,459,000 at December 31, 2023.
The Corporation grants loans to individuals as well as commercial and tax-exempt entities.
3 unchanged sentences
Subsequently, the Corporation has recognized amortization and accretion of a portion of the market rate adjustments and credit adjustments on performing loans.
−Removed: For the three-month and nine-month periods ended September 30, 2023 and 2022, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows:
+Added: For the three-month periods ended March 31, 2024 and 2023, adjustments to the initial market rate and credit fair value adjustments of performing loans were recognized as follows:
(In Thousands)
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
Market Rate Adjustment
Adjustments to gross amortized cost of loans at beginning of period
−Removed: (Amortization) accretion recognized in interest income
+Added: Accretion (amortization) recognized in interest income
Adjustments to gross amortized cost of loans at end of period
4 unchanged sentences
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: The following table presents an analysis of past due loans as of September 30, 2023:
+Added: The following tables presents an analysis of past due loans as of March 31, 2024 and December 31, 2023:
(In Thousands)
−Removed: As of September 30, 2023
+Added: As of March 31, 2024
Commercial real estate - non-owner occupied
3 unchanged sentences
Consumer loans
−Removed: The following table presents an analysis of past due loans as of December 31, 2022:
(In Thousands)
5 unchanged sentences
Consumer loans
−Removed: Purchased credit impaired
−Removed: In determining the larger loan relationships for detailed assessment under the specific allowance component, the Corporation uses an internal risk rating system.
+Added: The Corporation uses an internal risk rating system.
Under the risk rating system, the Corporation classifies problem or potential problem loans as “Special Mention,” “Substandard,” or “Doubtful” on the basis of currently existing facts, conditions and values.
+Added: Loans that do not currently expose the Corporation to sufficient risk to warrant classification as Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention.
Substandard loans include those characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.
Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
−Removed: Loans that do not currently expose the Corporation to sufficient risk to warrant classification as Substandard or Doubtful, but possess weaknesses that deserve management’s close attention, are deemed to be Special Mention.
Risk ratings are updated any time that conditions or the situation warrants.
1 unchanged sentence
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: The following table presents the recorded investment in loans by credit quality indicators by year of origination as of September 30, 2023:
+Added: The following table presents the recorded investment in loans by credit quality indicators by year of origination as of March 31, 2024:
(In Thousands)
21 unchanged sentences
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: The following table presents the recorded investment in loans by credit quality indicators as of December 31, 2022:
+Added: The following table presents the recorded investment in loans by credit quality indicators by year of origination as of December 31, 2023:
+Added: Term Loans by Year of Origination
(In Thousands)
Commercial real estate - non-owner occupied
+Added: Special Mention
+Added: Total commercial real estate - non-owner occupied
+Added: Year-to-date gross charge-offs
Commercial real estate - owner occupied
+Added: Special Mention
+Added: Total commercial real estate - owner occupied
+Added: Year-to-date gross charge-offs
All other commercial loans
+Added: Special Mention
+Added: Total all other commercial loans
+Added: Year-to-date gross charge-offs
Residential mortgage loans
+Added: Special Mention
+Added: Total residential mortgage loans
+Added: Year-to-date gross charge-offs
Consumer loans
−Removed: Purchased credit impaired
−Removed: The following table is a summary of the Corporation’s nonaccrual loans by major categories for the periods indicated.
−Removed: September 30, 2023
−Removed: December 31, 2022
+Added: Special Mention
+Added: Total consumer loans
+Added: Year-to-date gross charge-offs
+Added: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
+Added: The following tables are a summary of the Corporation’s nonaccrual loans by major categories for the periods indicated.
+Added: March 31, 2024
Nonaccrual Loans with
3 unchanged sentences
with an Allowance
+Added: Commercial real estate - non-owner occupied
+Added: Commercial real estate - owner occupied
+Added: All other commercial loans
+Added: Residential mortgage loans
+Added: Consumer loans
+Added: December 31, 2023
+Added: Nonaccrual Loans with
Nonaccrual Loans
+Added: Total Nonaccrual
+Added: (In Thousands)
+Added: with an Allowance
Commercial real estate - non-owner occupied
3 unchanged sentences
Consumer loans
−Removed: Purchased credit impaired
−Removed: The Corporation recognized $ 317,000 and $ 744,000 of interest income on nonaccrual loans during the three months and nine months ended September 30, 2023, respectively.
−Removed: The following table represents the accrued interest receivable written off by reversing interest income during the three-month and nine-month periods ended September 30, 2023:
+Added: The Corporation recognized interest income on nonaccrual loans of $ 231,000 in the three months ended March 31, 2024 and $ 231,000 in the three months ended March 31, 2023.
+Added: The following table represents the accrued interest receivable written off by reversing interest income during the three-month periods ended March 31,2024 and 2023:
Three Months Ended
−Removed: Nine Months Ended
+Added: Three Months Ended
(In Thousands)
−Removed: September 30, 2023
−Removed: September 30, 2023
+Added: March 31, 2024
+Added: March 31, 2023
Commercial real estate - non-owner occupied
+Added: All other commercial loans
Residential mortgage loans
Consumer loans
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
The Corporation has certain loans for which repayment is dependent upon the operation or sale of collateral, as the borrower is experiencing financial difficulty.
4 unchanged sentences
Non-owner occupied commercial real estate loans are generally secured by office buildings and complexes, retail facilities, multifamily complexes, land under development, industrial properties, as well as other commercial or industrial real estate.
−Removed: ● All other commercial loans are typically secured by business assets including inventory, equipment and receivables.
+Added: ● All other commercial loans include loans typically secured by business assets including inventory, equipment and receivables.
+Added: Also within this category, commercial construction and land loans and some commercial lines of credit are secured by real estate.
● Residential mortgage loans are typically secured by first mortgages, and in some cases could be secured by a second mortgage.
1 unchanged sentence
Some consumer loans are unsecured and have no underlying collateral.
+Added: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
The following table details the amortized cost of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses on loans allocated to these loans:
−Removed: September 30, 2023
+Added: March 31, 2024
+Added: December 31, 2023
(In Thousands)
2 unchanged sentences
All other commercial loans
−Removed: The following table summarizes the activity related to the ACL for the three and nine months ended September 30, 2023 under the CECL methodology.
+Added: The following table summarizes the activity related to the allowance for credit losses for the three-month periods ended March 31, 2024 and 2023.
real estate -
1 unchanged sentence
(In Thousands)
−Removed: Balance, June 30, 2023
−Removed: (Credit) provision for credit losses on loans
−Removed: Balance, September 30, 2023
+Added: Balance, December 31, 2023
+Added: Provision (credit) for credit losses on loans
+Added: Balance, March 31, 2024
real estate -
4 unchanged sentences
(Credit) provision for credit losses on loans
−Removed: Balance, September 30, 2023
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Prior to the adoption of ASC 326 on January 1, 2023, the Corporation calculated the allowance for loan losses under the incurred loss methodology.
−Removed: The following tables are disclosed related to the allowance for loan losses in prior periods.
−Removed: Three Months Ended September 30, 2022
−Removed: June 30, 2022
−Removed: September 30, 2022
−Removed: (In Thousands)
−Removed: Provision (Credit)
−Removed: Allowance for Loan Losses:
−Removed: Commercial loans secured by real estate
−Removed: Commercial and industrial
−Removed: Commercial construction and land
−Removed: Loans secured by farmland
−Removed: Multi-family (5 or more) residential
−Removed: Agricultural loans
−Removed: Other commercial loans
−Removed: Total commercial
−Removed: Residential mortgage:
−Removed: Residential mortgage loans - first liens
−Removed: Residential mortgage loans - junior liens
−Removed: Home equity lines of credit
−Removed: 1-4 Family residential construction
−Removed: Total residential mortgage
−Removed: Total Allowance for Loan Losses
−Removed: Nine Months Ended September 30, 2022
−Removed: December 31, 2021
−Removed: September 30, 2022
−Removed: (In Thousands)
−Removed: Provision (Credit)
−Removed: Allowance for Loan Losses:
−Removed: Commercial loans secured by real estate
−Removed: Commercial and industrial
−Removed: Commercial construction and land
−Removed: Loans secured by farmland
−Removed: Multi-family (5 or more) residential
−Removed: Agricultural loans
−Removed: Other commercial loans
−Removed: Total commercial
−Removed: Residential mortgage:
−Removed: Residential mortgage loans - first liens
−Removed: Residential mortgage loans - junior liens
−Removed: Home equity lines of credit
−Removed: 1-4 Family residential construction
−Removed: Total residential mortgage
−Removed: Total Allowance for Loan Losses
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: The following tables present a summary of loan balances and the related allowance for loan losses summarized by portfolio segment and class for each impairment method used as of December 31, 2022.
−Removed: December 31, 2022
−Removed: Allowance for Loan Losses:
−Removed: (In Thousands)
−Removed: Commercial loans secured by real estate
−Removed: Commercial and industrial
−Removed: Paycheck Protection Program - 1st Draw
−Removed: Paycheck Protection Program - 2nd Draw
−Removed: Political subdivisions
−Removed: Commercial construction and land
−Removed: Loans secured by farmland
−Removed: Multi-family (5 or more) residential
−Removed: Agricultural loans
−Removed: Other commercial loans
−Removed: Total commercial
−Removed: Residential mortgage:
−Removed: Residential mortgage loans - first liens
−Removed: Residential mortgage loans - junior liens
−Removed: Home equity lines of credit
−Removed: 1-4 Family residential construction
−Removed: Total residential mortgage
−Removed: Prior to the adoption of ASU 2016-13, loans were classified as impaired when, based on current information and events, it was probable that the Corporation would be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.
−Removed: Factors considered by management in determining impairment included payment status, collateral value and the probability of collecting scheduled principal and interest payments when due.
−Removed: Loans that experienced insignificant payment delays and payment shortfalls generally were not classified as impaired.
−Removed: Management determined the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of shortfall in relation to the principal and interest owed.
−Removed: Impairment was measured on a loan-by-loan basis for commercial loans by the fair value of the collateral (if the loan is collateral dependent), by future cash flows discounted at the loan’s effective rate or by the loan’s observable market price.
−Removed: The scope of loans reviewed individually each quarter to determine if they were impaired included all commercial loan relationships greater than $ 200,000 and any residential mortgage or consumer loans of $ 400,000 or more for which there was at least one extension of credit graded Special Mention, Substandard or Doubtful.
−Removed: All loans classified as troubled debt restructurings and all commercial loan relationships less than $ 200,000 or other loan relationships less than $ 400,000 in the aggregate, but with an estimated loss of $ 100,000 or more, were individually evaluated for impairment.
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Summary information related to impaired loans at December 31, 2022 is provided in the table immediately below.
−Removed: (In Thousands)
−Removed: December 31, 2022
−Removed: With no related allowance recorded:
−Removed: Commercial loans secured by real estate
−Removed: Commercial and industrial
−Removed: Residential mortgage loans - first liens
−Removed: Residential mortgage loans - junior liens
−Removed: Home equity lines of credit
−Removed: Loans secured by farmland
−Removed: Agricultural loans
−Removed: Construction and other land loans
−Removed: Total with no related allowance recorded
−Removed: With a related allowance recorded:
−Removed: Commercial loans secured by real estate
−Removed: Commercial and industrial
−Removed: Total with a related allowance recorded
−Removed: The average balance of impaired loans and interest income recognized on these impaired loans is as follows:
+Added: Balance, March 31, 2023
+Added: Modifications Made to Borrowers Experiencing Financial Difficulty
+Added: The Corporation closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.
+Added: Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.
+Added: During the three months ended March 31, 2024 and March 31, 2023, the Corporation had no modifications to borrowers experiencing financial difficulty.
+Added: The Corporation closely monitors the performance of the loans modified to borrowers experiencing financial difficultly to understand the effectiveness of its modification efforts.
+Added: The following table depicts the performance of two loans which were in non-accrual status at March 31, 2024 that were modified in the past twelve months:
(In Thousands)
−Removed: Interest Income Recognized on
−Removed: Average Investment in Impaired Loans
−Removed: Impaired Loans on a Cash Basis
−Removed: Three Months Ended
−Removed: Nine Months Ended
−Removed: Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
−Removed: Commercial loans secured by real estate
−Removed: Commercial and industrial
−Removed: Commercial construction and land
−Removed: Loans secured by farmland
−Removed: Multi-family (5 or more) residential
−Removed: Agricultural loans
−Removed: Total commercial
−Removed: Residential mortgage:
−Removed: Residential mortgage loans - first lien
−Removed: Residential mortgage loans - junior lien
−Removed: Home equity lines of credit
−Removed: Total residential mortgage
−Removed: The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition.
−Removed: The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty.
−Removed: An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.
−Removed: Because the effect of most modifications made to borrowers experiencing financial difficulty, such as extensions of terms, insignificant payment delays and interest rate reductions, is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.
+Added: Payment Status (Amortized Costs Basis)
+Added: March 31, 2024
+Added: 90+ Days Past Due
+Added: Commercial real estate - non-owner occupied:
+Added: Non-owner occupied
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: Occasionally, the Corporation modifies loans by providing principal forgiveness on certain of its real estate loans.
−Removed: When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses.
−Removed: The amount of the principal forgiveness is deemed to be uncollectible;
−Removed: therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.
−Removed: There were no loans modified to borrowers experiencing financial difficulty in the three-month and nine-month periods ended September 30, 2023.
+Added: The loan that was past due more than 90 days in the table above was in default with its modified terms at March 31, 2024.
+Added: At March 31, 2024 and December 31, 2023, the Corporation had no commitments to lend any additional funds on modified loans.
+Added: Except as described above, at March 31, 2024 and March 31, 2023, the Corporation had no loans that defaulted during the period and had been modified preceding the payment default when the borrower was experiencing financial difficulty at the time of modification.
The carrying amount of foreclosed residential real estate properties held as a result of obtaining physical possession (included in foreclosed assets held for sale in the unaudited consolidated balance sheets) is as follows:
(In Thousands)
−Removed: September 30,
Foreclosed residential real estate
1 unchanged sentence
(In Thousands)
−Removed: September 30,
Residential real estate in process of foreclosure
3 unchanged sentences
The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives.
−Removed: The allowance for credit losses for off-balance sheet exposures of $ 900,000 at September 30, 2023 and $ 425,000 at December 31, 2022, is included in accrued interest and other liabilities on the unaudited consolidated balance sheets.
−Removed: The following table presents the balance and activity in the allowance for credit losses for off-balance sheet exposures for the three and nine months ended September 30, 2023.
+Added: The allowance for credit losses for off-balance sheet exposures of $ 684,000 at March 31, 2024 and $ 690,000 at December 31, 2023, is included in accrued interest and other liabilities on the unaudited consolidated balance sheets.
+Added: The following table presents the balance and activity in the allowance for credit losses for off-balance sheet exposures for the three-months period ended March 31 2024 and 2023:
(In Thousands)
−Removed: September 30, 2023
−Removed: September 30, 2023
+Added: March 31, 2024
+Added: March 31, 2023
Beginning Balance
1 unchanged sentence
Credit for unfunded commitments
−Removed: Balance, September 30, 2023
+Added: Ending Balance, March 31
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
1 unchanged sentence
Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired.
−Removed: At September 30, 2023 and December 31, 2022, the net carrying value of goodwill was $ 52,505,000 .
+Added: At March 31, 2024 and December 31, 2023, the net carrying value of goodwill was $ 52,505,000 .
Information related to core deposit intangibles is as follows:
(In Thousands)
−Removed: September 30,
Accumulated amortization
2 unchanged sentences
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
−Removed: September 30,
Amortization expense
3 unchanged sentences
(In Thousands)
−Removed: September 30,
FHLB-Pittsburgh borrowings
1 unchanged sentence
Total short-term borrowings
−Removed: The Corporation had available credit with other correspondent banks totaling $ 95,000,000 at September 30, 2023 and December 31, 2022.
+Added: The Corporation had available credit with other correspondent banks totaling $ 75,000,000 at March 31, 2024 and December 31, 2023.
These lines of credit are primarily unsecured.
−Removed: No amounts were outstanding at September 30, 2023 or December 31, 2022.
+Added: No amounts were outstanding at March 31, 2024 or December 31, 2023.
The Corporation has a line of credit with the Federal Reserve Bank of Philadelphia’s Discount Window.
−Removed: At September 30, 2023, the Corporation had available credit in the amount of $ 20,766,000 on this line with no outstanding advances.
+Added: At March 31, 2024, the Corporation had available credit in the amount of $ 19,063,000 on this line with no outstanding advances.
At December 31, 2023, the Corporation had available credit in the amount of $ 19,982,000 on this line with no outstanding advances.
−Removed: As collateral for this line, the Corporation has pledged available-for-sale securities with a carrying value of $ 21,731,000 at September 30, 2023 and $ 24,113,000 at December 31, 2022.
+Added: As collateral for this line, the Corporation has pledged available-for-sale securities with a carrying value of $ 20,237,000 at March 31, 2024 and $ 20,829,000 at December 31, 2023.
The Corporation engages in repurchase agreements with certain commercial customers.
These agreements provide that the Corporation sells specified investment securities to the customers on an overnight basis and repurchases them on the following business day.
−Removed: The weighted average rate paid by the Corporation on customer repurchase agreements was 0.10 % at September 30, 2023 and December 31, 2022.
−Removed: The carrying value of the underlying securities was $ 1,770,000 at September 30, 2023 and $ 3,080,000 at December 31, 2022.
−Removed: The FHLB-Pittsburgh loan facility is collateralized by qualifying loans secured by real estate with a book value totaling $ 1,321,417,000 at September 30, 2023 and $ 1,209,179,000 at December 31, 2022.
+Added: The weighted average rate paid by the Corporation on customer repurchase agreements was 0.10 % at March 31, 2024 and December 31, 2023.
+Added: The carrying value of the underlying securities was $ 1,820,000 at March 31, 2024 and $ 2,400,000 at December 31, 2023.
+Added: The FHLB-Pittsburgh loan facility is collateralized by qualifying loans secured by real estate with a book value totaling $ 1,345,241,000 at March 31, 2024 and $ 1,323,008,000 at December 31, 2023.
Also, the FHLB-Pittsburgh loan facility requires the Corporation to invest in established amounts of FHLB-Pittsburgh stock.
−Removed: The carrying values of the Corporation’s holdings of FHLB-Pittsburgh stock (included in other assets in the consolidated balance sheets) were $ 14,570,000 at September 30, 2023 and $ 14,168,000 at December 31, 2022.
−Removed: The Corporation’s total credit facility with FHLB-Pittsburgh was $ 918,798,000 at September 30, 2023, including an unused
+Added: The carrying values of the Corporation’s holdings of FHLB-Pittsburgh stock (included in other assets in the consolidated balance sheets) were $ 16,266,000 at March 31, 2024 and $ 15,214,000 at December 31, 2023.
+Added: The Corporation’s total credit facility with FHLB-Pittsburgh was $ 927,950,000 at March 31, 2024, including an unused (available)
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: (available) amount of $ 752,847,000 .
+Added: amount of $ 712,932,000 .
At December 31, 2023, the Corporation’s total credit facility with FHLB-Pittsburgh was $ 926,845,000 , including an unused (available) amount of $ 737,824,000 .
−Removed: At September 30, 2023, short-term borrowings included an overnight borrowing from FHLB-Pittsburgh of $ 6,500,000 at an interest rate of 5.68 % and an advance of $ 15,000,000 maturing in October 2023 with an interest rate of 5.61 %.
−Removed: At December 31, 2022, the overnight borrowing from FHLB-Pittsburgh was $ 77,000,000 at an interest rate of 4.45 % with no other short-term advances.
+Added: At March 31, 2024, short-term borrowings included an overnight borrowing from FHLB-Pittsburgh of $ 7,000,000 at an interest rate of 5.67 %, a $ 25,000,000 advance that matured on April 1, 2024 at an interest rate of 5.63 % and other short-term advances maturing in the third and fourth quarters of 2024 totaling $ 15,000,000 with a weighted average interest rate of 5.32 %.
+Added: At December 31, 2023, short-term borrowings included an overnight borrowing from FHLB-Pittsburgh of $ 6,500,000 at an interest rate of 5.68 % and short-term advances maturing in the first quarter 2024 totaling $ 25,000,000 with a weighted average interest rate of 5.60 %.
LONG-TERM BORROWINGS – FHLB ADVANCES
1 unchanged sentence
(In Thousands)
−Removed: September 30,
−Removed: Loan maturing in 2023 with a rate of 3.25 %
Loans maturing in 2024 with a weighted-average rate of 3.04 %
2 unchanged sentences
Loans maturing in 2027 with a weighted-average rate of 4.00 %
−Removed: Loan maturing in 2028 with a rate of 3.72 %
+Added: Loans maturing in 2028 with a weighted-average rate of 4.15 %
Total long-term FHLB-Pittsburgh borrowings
−Removed: Weighted-average rates are presented as of September 30, 2023.
−Removed: In 2021, the Corporation issued and sold $ 15.0 million in aggregate principal amount of 2.75 % Fixed Rate Senior Unsecured Notes due 2026 (the "Senior Notes").
+Added: Weighted-average rates are presented as of March 31, 2024.
+Added: In 2021, the Corporation issued and sold $ 15.0 million in aggregate principal amount of 2.75 % Fixed Rate Senior Unsecured Notes due 2026 (the "Senior Notes").
The Senior Notes mature on June 1, 2026 and bear interest at a fixed annual rate of 2.75 %.
3 unchanged sentences
Debt issuance costs are amortized over the term of the Senior Notes as an adjustment of the effective interest rate.
−Removed: Amortization of debt issuance costs associated with the Senior Notes totaling $ 16,000 in the third quarter 2023 and $ 49,000 in the nine-month period ended September 30, 2023, and $ 16,000 in the third quarter 2022 and $ 48,000 in the nine month-period ended September 30, 2022, was included in interest expense in the unaudited consolidated statements of income.
−Removed: At September 30, 2023 and December 31, 2022, outstanding Senior Notes are as follows:
+Added: Amortization of debt issuance costs associated with the Senior Notes totaling $ 17,000 in the first quarter 2024 and $ 16,000 in the first quarter 2023 was included in interest expense in the unaudited consolidated statements of income.
+Added: At March 31, 2024 and December 31, 2023, outstanding Senior Notes are as follows:
(In Thousands)
−Removed: September 30,
Senior Notes with an aggregate par value of $ 15,000,000 ;
3 unchanged sentences
SUBORDINATED DEBT
−Removed: In 2021, the Corporation issued and sold $ 25.0 million in aggregate principal amount of 3.25 % Fixed-to-Floating Rate Subordinated Notes due 2031 (the "Subordinated Notes").
+Added: In 2021, the Corporation issued and sold $ 25.0 million in aggregate principal amount of 3.25 % Fixed-to-Floating Rate Subordinated Notes due 2031 (the "Subordinated Notes").
The Subordinated Notes mature on June 1, 2031 and bear interest at a fixed annual rate of 3.25 %, to June 1, 2026 .
9 unchanged sentences
Debt issuance costs are amortized through June 1, 2026 as an adjustment of the effective interest rate.
−Removed: Amortization of debt issuance costs associated with the Subordinated Notes totaling $ 28,000 in the third quarter 2023 and $ 82,000 in the nine-month period ended September 30, 2023, and $ 27,000 in the third quarter 2022 and $ 79,000 in the nine-month period ended September 30, 2022, was included in interest expense in the unaudited consolidated statements of income.
−Removed: At September 30, 2023 and December 31, 2022, the carrying amounts of subordinated debt agreements are as follows:
+Added: Amortization of debt issuance costs associated with the Subordinated Notes totaling $ 28,000 in the first quarter 2024 and $ 27,000 in the first quarter 2023, was included in interest expense in the unaudited consolidated statements of income.
+Added: At March 31, 2024 and December 31, 2023, the carrying amounts of subordinated debt agreements are as follows:
(In Thousands)
−Removed: September 30,
Agreements with a par value of $ 25,000,000 ;
3 unchanged sentences
STOCK-BASED COMPENSATION PLANS
−Removed: The Corporation had a Stock Incentive Plan for a selected group of officers and an Independent Directors Stock Incentive Plan.
−Removed: The 2023 restricted stock awards under the Stock Incentive Plan vest ratably over three years , and the 2023 restricted stock issued under the Independent Directors Stock Incentive Plan vests over one year .
−Removed: There were no restricted stock awards granted in the three-month periods ended September 30, 2023 and June 30, 2023.
+Added: The Corporation has a stock incentive plan for selected officers and the independent directors.
+Added: The first quarter 2024 awards to employees vest ratably over three years , and the 2024 restricted stock awards for the independent directors vest over one year .
Following is a summary of restricted stock awards granted in the three-month period ended March 31, 2024:
4 unchanged sentences
Performance-based awards to employees
−Removed: Effective April 20, 2023, the Corporation’s shareholders approved a new plan, the Citizens & Northern Corporation 2023 Equity Incentive Plan (the “2023 Equity Incentive Plan”).
−Removed: New awards to employees and independent directors will be governed under the 2023 Equity Incentive Plan, while outstanding awards under the prior plans (including the awards made in the first quarter 2023) will be governed under the prior plans.
Compensation cost related to restricted stock is recognized based on the fair value of the stock at the grant date over the vesting period, adjusted for estimated and actual forfeitures.
Total annual stock-based compensation for the year ending December 31, 2024 is estimated to total $ 1,300,000 .
−Removed: Total stock-based compensation expense attributable to restricted stock awards amounted to $ 320,000 in the third quarter 2023 and $ 388,000 in the third quarter 2022.
−Removed: Total stock-based compensation expense attributable to restricted stock awards amount to $ 1,015,000 in the nine-month period ended September 30, 2023 and $ 1,169,000 in the nine-month period ended September 30, 2022.
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
+Added: Total stock-based compensation expense attributable to restricted stock awards amounted to $ 326,000 in the first quarter 2024 and $ 377,000 in the first quarter 2023.
CONTINGENCIES
+Added: Class Action Litigation
+Added: On March 27, 2024, a putative class action lawsuit was filed in the US District Court for the Western District of Texas by investors in a purported Ponzi scheme operated by two individuals, one of whom maintained accounts at C&N Bank.
+Added: The plaintiffs have sued C&N Bank, along with another bank, and additional law firm and accounting firm defendants.
+Added: The case is styled Goldovsky, et al.
+Added: Rausch, et al.
+Added: Plaintiffs have asserted claims against C&N Bank and the other bank for aiding and abetting alleged violations of the Texas Securities Act, and additional claims against the legal and accounting professionals for statutory fraud, common law fraud, negligent misrepresentation, and knowing participation in breach of fiduciary duty.
+Added: C&N Bank has not yet responded to the complaint.
+Added: C&N Bank believes that it has substantial defenses, and it intends to defend itself against the plaintiffs’ allegations.
+Added: The Corporation does not
+Added: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
+Added: believe at this time that a loss is probable in this matter, nor can a range of possible losses be determined.
+Added: Accordingly, no accrual or range of loss has been included in the accompanying financial statements.
+Added: Other Matters
In the normal course of business, the Corporation is subject to pending and threatened litigation in which claims for monetary damages are asserted.
9 unchanged sentences
As the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings.
−Removed: The aggregate notional amount of interest rate swaps was $ 152,536,000 at September 30, 2023 and $ 155,214,000 at December 31, 2022.
−Removed: There were no interest rate swaps originated in the three or nine-month periods ended September 30, 2023 and 2022.
−Removed: There were no gross amounts of interest rate swap-related assets and liabilities not offset in the consolidated balance sheets at September 30, 2023.
−Removed: The net impact on the consolidated statements of income from interest rate swaps was an increase in interest income on loans of $ 502,000 in the third quarter 2023 and $ 1,286,000 in the nine-month period ended September 30, 2023 as compared to a reduction in interest income on loans of $ 4,000 in third quarter 2022 and $ 541,000 in the nine months ended September 30, 2022.
+Added: The aggregate notional amount of interest rate swaps was $ 148,838,000 at March 31, 2024 and $ 150,028,000 at December 31, 2023.
+Added: There were no interest rate swaps originated in the periods ended March 31, 2024, and 2023.
+Added: There were no gross amounts of interest rate swap-related assets and liabilities not offset in the consolidated balance sheets at March 31, 2024.
+Added: The net impact on the consolidated statements of income from interest rate swaps was an increase in interest income on loans of $ 498,000 in the first quarter 2024 and $ 345,000 in the first quarter 2023.
The Corporation has entered into an RPA with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed.
This type of derivative is referred to as an “RPA In.” In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the Corporation has provided a loan structured with a derivative, the Corporation purchased an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared.
−Removed: This type of derivative is referred to as an “RPA Out.” The net impact on the consolidated statements of income from RPAs was an increase in other noninterest income of $ 1,000 in the third quarter 2023 and $ 19,000 in the nine-month period ended September 30, 2023 with no comparable amount in the third quarter 2022 and in the nine months ended September 30, 2022.
−Removed: The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the consolidated balance sheets at September 30, 2023 and December 31, 2022:
+Added: This type of derivative is referred to as an “RPA Out.” The net impact on the consolidated statements of income from RPAs was an increase in other noninterest income of $ 1,000 in the first quarter 2024 and $ 16,000 in the first quarter 2023.
+Added: The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the consolidated balance sheets at March 31, 2024 and December 31, 2023:
(In Thousands)
−Removed: At September 30, 2023
+Added: At March 31, 2024
At December 31, 2023
9 unchanged sentences
Further, if the Corporation were to fail to maintain its status as a well or adequately capitalized institution, then the counterparties could terminate the derivative positions and the Corporation would be required to settle its obligations under the agreements.
−Removed: Available-for-sale securities with a carrying value of $ 2,251,000 were pledged as collateral against the Corporation’s obligations related to the interest rate swaps at September 30, 2023.
+Added: There was interest-bearing cash pledged as collateral against the Corporation’s liability related to the interest rate swaps of $ 1,140,000 at March 31, 2024 and $ 1,360,000 at December 31, 2023.
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS
14 unchanged sentences
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: At September 30, 2023 and December 31, 2022, assets and liabilities measured at fair value and the valuation methods used are as follows:
−Removed: September 30, 2023
+Added: At March 31, 2024 and December 31, 2023, assets and liabilities measured at fair value and the valuation methods used are as follows:
+Added: March 31, 2024
+Added: Quoted Prices
+Added: Other Observable
+Added: in Active Markets
(In Thousands)
19 unchanged sentences
Interest rate swap agreements, liabilities
+Added: Total recurring fair value measurements, liabilities
Nonrecurring fair value measurements, assets:
4 unchanged sentences
December 31, 2023
+Added: Quoted Prices
+Added: Other Observable
+Added: in Active Markets
(In Thousands)
19 unchanged sentences
Interest rate swap agreements, liabilities
+Added: Total recurring fair value measurements, liabilities
Nonrecurring fair value measurements, assets:
5 unchanged sentences
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: At September 30, 2023 and December 31, 2022, quantitative information regarding valuation techniques and the significant unobservable inputs used for assets measured on a recurring basis using unobservable inputs (Level 3 methodologies) are as follows:
+Added: At March 31, 2024 and December 31, 2023, quantitative information regarding valuation techniques and the significant unobservable inputs used for assets measured on a recurring basis using unobservable inputs (Level 3 methodologies) are as follows:
Fair Value at
39 unchanged sentences
Unrealized gains (losses) in fair value of servicing rights are included in Loan servicing fees, net, in the unaudited consolidated statements of income.
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
Following is a reconciliation of activity for Level 3 assets measured at fair value on a recurring basis:
1 unchanged sentence
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: September 30, 2022
−Removed: September 30, 2023
−Removed: September 30, 2022
+Added: March 31, 2024
+Added: March 31, 2023
Servicing rights balance, beginning of period
Originations of servicing rights
−Removed: Unrealized (loss) gain included in earnings
+Added: Unrealized gain (loss) included in earnings
Servicing rights balance, end of period
−Removed: Loans are individually evaluated for credit loss when, based on current information and events, it is probable that the Corporation will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.
+Added: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
+Added: Loans are individually evaluated for credit loss when they do not share similar risk characteristics as similar loans within its loan pool.
Foreclosed assets held for sale consist of real estate acquired by foreclosure.
−Removed: For individually evaluated commercial loans secured by real estate and foreclosed assets held for sale, estimated fair values are determined primarily using values from third-party appraisals.
+Added: For individually evaluated loans secured by real estate and foreclosed assets held for sale, estimated fair values are determined primarily using values from third-party appraisals.
Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value.
The discounts also include estimated costs to sell the property.
−Removed: CITIZENS & NORTHERN CORPORATION – FORM 10-Q
−Removed: At September 30, 2023 and December 31, 2022, quantitative information regarding valuation techniques and the significant unobservable inputs used for nonrecurring fair value measurements using Level 3 methodologies are as follows:
+Added: At March 31, 2024 and December 31, 2023, quantitative information regarding valuation techniques and the significant unobservable inputs used for nonrecurring fair value measurements using Level 3 methodologies are as follows:
(Dollars In Thousands)
+Added: Range (Weighted
Fair Value at
3 unchanged sentences
Discount to appraised value
+Added: 22 %- 30 % (25)
Commercial real estate - owner occupied
2 unchanged sentences
All other commercial loans
−Removed: Liquidation & SBA guaranty
+Added: Sales comparison
Discount to appraised value
+Added: 0 %- 82 % (16)
Total loans individually evaluated for credit loss
6 unchanged sentences
Discount to appraised value
+Added: 18 %- 77 % (45)
Total foreclosed assets held for sale
(Dollars In Thousands)
+Added: Range (Weighted
Fair Value at
−Removed: Impaired loans:
−Removed: Commercial loans secured by real estate
+Added: Loans individually evaluated for credit loss:
+Added: Commercial real estate - nonowner occupied
Sales comparison
Discount to appraised value
−Removed: Commercial and industrial
−Removed: Liquidation of assets
+Added: 22 %- 30 % ( 25 )
+Added: Commercial real estate - owner occupied
+Added: Sales comparison & SBA guaranty
Discount to appraised value
−Removed: Total impaired loans
+Added: All other commercial loans
+Added: Liquidation & SBA guaranty
+Added: Discount to appraised value
+Added: 0 %- 76 % ( 17 )
+Added: Total loans individually evaluated for credit loss
Foreclosed assets held for sale - real estate:
+Added: Residential (1-4 family)
+Added: Sales comparison
+Added: Discount to appraised value
+Added: 20 %- 62 % ( 50 )
Commercial real estate
1 unchanged sentence
Discount to appraised value
+Added: 18 %- 50 % ( 45 )
Total foreclosed assets held for sale
8 unchanged sentences
(In Thousands)
−Removed: September 30, 2023
+Added: March 31, 2024
December 31, 2023
11 unchanged sentences
Accrued interest payable
−Removed: The Corporation has commitments to extend credit and has issued standby letters of credit.
−Removed: Standby letters of credit are conditional guarantees of performance by a customer to a third party.
−Removed: Estimates of the fair value of these off-balance sheet items were not made because of the short-term nature of these arrangements and the credit standing of the counterparties.
CITIZENS & NORTHERN CORPORATION – FORM 10-Q
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.