Citizens & Northern Corporation Reports Stable Q2 Results and Announces Merger with Susquehanna Community Financial

Citizens & Northern Corporation reported its financial results for the second quarter and first half of 2025, revealing a net income of $6.1 million, or $0.40 per diluted share, compared to $6.1 million, or $0.40 per diluted share, in the same period last year. For the six months ended June 30, 2025, net income increased to $12.4 million, or $0.80 per diluted share, from $11.4 million, or $0.74 per diluted share, in the prior year. The corporation's net interest income for the second quarter was $21.1 million, up from $19.4 million in the same quarter of 2024, driven by an increase in average earning assets and a higher net interest margin of 3.52%, compared to 3.31% a year earlier.

The corporation's total assets remained stable at approximately $2.61 billion as of June 30, 2025, compared to $2.61 billion at the end of 2024. Total loans receivable increased to $1.92 billion, up from $1.90 billion at the end of the previous year, with notable growth in commercial real estate loans. The allowance for credit losses also rose to $21.7 million, representing 1.13% of gross loans, reflecting management's proactive approach to potential credit risks amid changing economic conditions.

Strategically, Citizens & Northern Corporation announced its agreement to acquire Susquehanna Community Financial, Inc., which operates seven banking offices in Central Pennsylvania. This merger, expected to close in the fourth quarter of 2025, is anticipated to enhance the corporation's market presence and operational scale. The corporation incurred $167,000 in merger-related expenses during the second quarter, primarily for professional and legal fees.

Operationally, the corporation reported a slight increase in total deposits to $2.11 billion, up from $2.09 billion at the end of 2024. Average total deposits for the first half of 2025 increased by 3.3% compared to the same period in 2024. The corporation's noninterest income also saw a rise, totaling $8.1 million in the second quarter, driven by increased interchange revenue and net gains from loan sales. However, noninterest expenses increased to $19.4 million, reflecting the impact of merger-related costs.

Looking ahead, Citizens & Northern Corporation remains focused on maintaining its financial stability and capital adequacy, with a capital conservation buffer of 7.21% as of June 30, 2025. The corporation's management believes it is well-positioned to meet its short-term and long-term funding obligations, supported by ample liquidity and a strong capital position. The ongoing merger with Susquehanna Community Financial is expected to further strengthen its competitive position in the market.