Executive Summary

Q3 2025 GAAP EPS was $0.42, up vs Q2 ($0.40) and vs Q3’24 ($0.41); S&P Global shows adjusted EPS of ~$0.47, coming in below the $0.525 consensus, and revenue of ~$$27.40M below the $28.50M consensus (driven by lower noninterest income without Q2’s $0.87M donation tax credits and higher credit provisioning) . S&P Global data marked with asterisks; values retrieved from S&P Global.*
Net interest margin expanded to 3.62% (from 3.52% in Q2 and 3.29% in Q3’24) on higher asset yields and slightly lower funding costs; net interest income rose $1.12M q/q and $2.11M y/y .
Credit costs remained elevated: provision for credit losses was $2.163M (vs $2.354M in Q2; $1.207M in Q3’24), primarily from qualitative factor increases; ACL rose to 1.21% of loans (from 1.13% in Q2) .
Deposits increased $56.0M q/q (seasonal municipal inflows), uninsured deposits were 23.7% of total (down from 24.2% in Q2), and available liquidity covered 164.6% of uninsured deposits; dividend maintained at $0.28 per share (payable Nov 14) .
Merger with Susquehanna closed Oct 1; management estimates ~$7.5M pre‑tax merger-related expenses with most in Q4’25—an important near-term EPS headwind but a medium-term growth and scale catalyst .

What Went Well and What Went Wrong

What Went Well
- NIM inflected higher to 3.62% (up 10 bps q/q, 33 bps y/y), driving net interest income growth despite a stable balance sheet; spread widened as asset yields rose and funding costs decreased modestly .
- Deposit growth of $55.96M q/q with seasonal municipal inflows; uninsured deposit ratio improved to 23.7% (from 24.2% in Q2), while liquidity remained strong at 164.6% of uninsured deposits .
- Strategic expansion: the Susquehanna merger closed; CEO Brad Scovill: “We are pleased to welcome Susquehanna’s shareholders, customers and employees to our C&N family… [and] strengthen our position… in the Central Pennsylvania market.” .
What Went Wrong
- EPS and revenue missed S&P Global consensus; adjusted EPS of ~$0.47* vs $0.525 and revenue ~$27.40M* vs $28.50M—pressure tied to higher provision and the absence of Q2’s $0.87M donation-related tax credits in noninterest income . S&P Global values marked with asterisks; values retrieved from S&P Global.*
- Provision for credit losses remained elevated at $2.163M (vs $1.207M in Q3’24), driven mainly by qualitative factor updates; NPA/Assets increased to 1.02% (vs 0.92% in Q3’24) .
- Merger costs represent a near-term earnings headwind: ~$7.5M pre‑tax expected, concentrated in Q4’25 .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
GAAP EPS ($)	$0.41	$0.40	$0.42
Net Interest Income ($USD Thousands)	$20,156	$21,142	$22,263
Noninterest Income ($USD Thousands)	$7,133	$8,142	$7,304
Net Interest Margin (%)	3.29%	3.52%	3.62%
Provision for Credit Losses ($USD Thousands)	$1,207	$2,354	$2,163
Net Income ($USD Thousands)	$6,365	$6,117	$6,551

Q3 2025 vs S&P Global Consensus (current quarter only)

EPS (Adjusted, $): Actual ~$0.469* vs Consensus $0.525 → MISS (−$0.056). Values retrieved from S&P Global.
Revenue ($): Actual ~$27.404M* vs Consensus $28.500M → MISS (−$1.096M). Values retrieved from S&P Global.

KPIs

KPI	Q3 2024	Q2 2025	Q3 2025
Loans, Net ($USD Thousands)	$1,872,322	$1,897,559	$1,921,633
Deposits ($USD Thousands)	$2,135,879	$2,109,776	$2,165,735
Nonperforming Assets / Total Assets (%)	0.92%	0.98%	1.02%
ACL / Total Loans (%)	1.08%	1.13%	1.21%
Uninsured Deposits (% of Total)	21.9%	24.2%	23.7%
Highly Liquid Funding / Uninsured Deposits (%)	160.8%	175.6%	164.6%
Trust AUM ($USD Thousands)	$1,359,023	$1,380,547	$1,436,257
Brokered Deposits ($USD Thousands)	$45,051	$5,005	$5,004
Borrowed Funds – FHLB & Repos ($USD Thousands)	$186,043	$144,427	$134,383

Note on estimates: Asterisked items are from S&P Global consensus and actuals and are shown without document citations. Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Regular Dividend per Share ($)	Q4 2025 (payable Nov 14, 2025)	$0.28 (prior run-rate; Q3’24 dividend per share)	$0.28 (declared Oct 23; record Nov 3; payable Nov 14)	Maintained
Merger-related Expenses (pre‑tax)	FY 2025 (timing)	N/A	Approx. $7.5M total; most in Q4 2025	New disclosure

No formal revenue/expense/credit guidance provided beyond the above. Dividend policy unchanged at $0.28 per quarter .

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in the document set we reviewed.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Net Interest Margin	Q2: NIM 3.52%; spread +10 bps q/q; asset yield +7 bps, funding −3 bps	NIM rose to 3.62% (+10 bps q/q, +33 bps y/y)	Improving
Noninterest Income Mix	Q2: Included $874k in tax credits from donations, boosting noninterest income	No similar tax credit in Q3; noninterest income decreased $0.84M q/q	Normalizing lower after Q2 one-time
Credit Costs	Q2: Provision $2.354M; net charge-offs 0.12% (annualized)	Provision $2.163M; NCOs 0.02% (annualized); ACL up to 1.21%	Elevated provision but improved NCOs
Deposits & Liquidity	Q2: Uninsured deposits 24.2%; strong available liquidity	Deposits +$55.96M q/q (seasonal municipal), uninsured 23.7%; liquidity covers 164.6% of uninsured	Stable deposit base; ample liquidity
AFS Securities Valuation	Q2: Unrealized loss = 8.9% of amortized cost	Unrealized loss improved to 7.5% of cost	Modestly improving with rates
M&A Integration	Q2: Approvals received; closing expected 10/1	Merger closed 10/1; new director appointed; execs joining C&N	Integration underway

Management Commentary

Strategic message: “We are pleased to welcome Susquehanna’s shareholders, customers and employees to our C&N family… [which] aligns well with C&N’s mission and values and strengthens our position to build more value for customers and communities in the Central Pennsylvania market.” — Brad Scovill, President & CEO (merger completion press release, Oct 1, 2025) .
Expense outlook: Management estimates total pre‑tax merger-related expenses of approximately $7.5M, with most expected in Q4 2025 .
Balance sheet quality and liquidity: C&N maintained highly liquid sources of available funds totaling $1.147B at 9/30/25 (FHLB capacity $802.2M, Fed $25.2M, other banks $75M, AFS above pledging $244.3M) .

Q&A Highlights

No Q3 2025 earnings call transcript was available; therefore, no Q&A highlights or clarifications could be extracted.

Estimates Context

EPS: Adjusted EPS actual ~$0.469* vs S&P Global consensus $0.525 → MISS. Drivers include higher provision (qualitative factors) and absence of Q2’s $0.87M donation-related tax credit income . Values retrieved from S&P Global.*
Revenue: Actual ~$27.404M* vs S&P Global consensus $28.50M → MISS, consistent with lower noninterest income vs Q2 and solid but not outsized NII growth . Values retrieved from S&P Global.*
Implications: Street models likely need to reflect sustained elevated provisioning, Q4 merger-cost drag (~$7.5M pre‑tax mostly in Q4), and higher NIM run-rate into Q4 on asset yield momentum and moderated funding costs .

Key Takeaways for Investors

Core spread momentum continued: NIM up 10 bps q/q to 3.62%, with NII +$1.12M q/q; this underpins core earnings into Q4 absent unforeseen funding cost pressure .
Credit normalization remains the swing factor: provision elevated (though down q/q), with improved net charge-offs; ACL increased to 1.21%—a prudent buffer but an EPS headwind vs Street expectations .
Noninterest income normalized after Q2’s one-time donation tax credit; expect Q4 revenue mix to skew more toward NII and seasonal fee trends .
Strong liquidity posture (164.6% of uninsured deposits) and reduced reliance on wholesale borrowings position C&N well for rate and confidence shocks .
Q4 watch items: merger-related expense wave (~$7.5M pre‑tax) and early integration signals; pace of synergy realization not quantified—monitor run-rate expense exits in Q1’26 .
Dividend appears durable at $0.28 given capital and earnings trajectory; payout intact through integration .
Short-term trading: near-term EPS drag in Q4 from merger costs could pressure shares on prints; medium-term thesis: NIM resilience, disciplined credit, and balance sheet liquidity create an attractive set-up as integration benefits emerge in 2026 .

Footnote on estimates: Items marked with an asterisk are from S&P Global consensus and actuals. Values retrieved from S&P Global.*

CITIZENS & NORTHERN CORP (CZNC)·Q3 2025 Earnings Summary