Citizens & Northern (CZNC) investor relations material

Executive summary

• Net income for Q1 2026 was $273,000 ($0.02 per share), down 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.

• The Susquehanna Community Financial acquisition (completed October 2025) contributed to growth in assets, loans, deposits, and noninterest income and expense.

• 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.

• Net interest income rose $8.5 million year-over-year, driven by higher earning assets and improved net interest margin (3.98% vs. 3.38%).

• Noninterest income increased 16.9% year-over-year, with gains in service charges, interchange revenue, and other noninterest income.

Financial highlights

• Total assets at March 31, 2026 were $3.16 billion, up from $3.13 billion at year-end 2025.

• Loans receivable grew to $2.38 billion, with commercial loans comprising 76% of the portfolio.

• Deposits increased to $2.60 billion, with uninsured deposits at 32.7% of total deposits.

• Net interest income for Q1 2026 was $28.5 million, up 42.5% year-over-year.

• Noninterest expense rose 19.3% year-over-year, reflecting the impact of the Susquehanna acquisition and higher salaries, occupancy, and technology costs.

Outlook and guidance

• Management expects to maintain capital levels above regulatory standards and to continue integrating Susquehanna operations.

• Liquidity and capital positions are strong, with highly liquid funding sources totaling $1.4 billion (159% of uninsured deposits).

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