Citizens & Northern (CZNC) investor relations material

Executive summary

• Net income for Q1 2026 was $273,000 ($0.02 per share), down sharply from $6.3 million ($0.41 per share) in Q1 2025, mainly due to a significant charge-off on a large commercial real estate loan.

• Pre-tax, pre-provision net revenue (PPNR) rose 73.5% year-over-year to $14.1 million, reflecting core earnings strength and the impact of the Susquehanna acquisition.

• The provision for credit losses surged to $13.6 million, driven by a $10.1 million charge-off on a downgraded office property loan.

Financial highlights

• Net interest income increased 42.5% year-over-year to $28.5 million, with net interest margin up 60 bps to 3.98%.

• Noninterest income rose 16.6% to $8.2 million, aided by higher service charges, interchange revenue, and gains from loan sales.

• Noninterest expense increased 19.3% to $22.7 million, reflecting the Susquehanna acquisition.

• Total assets grew 21.3% to $3.16 billion; loans rose 25.2% to $2.35 billion; deposits up 23.7% to $2.6 billion.

• Allowance for credit losses as a percentage of loans increased to 1.42% from 1.06% a year ago.

Outlook and guidance

• Management remains confident in executing its profitable growth strategy, citing strong capital and liquidity profiles despite elevated nonperforming assets.