EX-99.1 8 l12593aexv99w1.txt EXHIBIT 99.1 EXHIBIT 13 annual highlights 2004 [PICTURE] [CITIZENS & NORTHERN CORPORATION LOGO] annual highlights 2004 investor information invest Known Market Makers who handle Citizens & Northern Corporation stock transactions follow: ARCHIPELAGO TRADING SERVICES, INC. 100 South Wacker Drive, Suite 1800, Chicago, IL 60606 BOENNING & SCATTERGOOD, INC. 4 Tower Bridge, Suite 300, 200 Barr Harbor Drive, West Conshocken, PA 19428 COMMERCE CAPITAL MARKETS, INC. 90 Fifth Avenue, New York, NY 10011 FERRIS, BAKER, WATTS, INC. 100 Light Street - Eighth Floor, Baltimore, MD 21202 HILL THOMPSON MAGID, L.P. 15 Exchange Place, Suite 800, Jersey City, NJ 07302 JANNEY MONTGOMERY SCOTT, LLC 1801 Market Street, Tenth Floor, Philadelphia, PA 19103 KNIGHT EQUITY MARKETS, LP Newport Tower, 525 Washington Boulevard, Jersey City, NJ 07310 MONROE SECURITIES, INC. 343 West Erie, Suite 410, Chicago, IL 60610 PERSHING TRADING COMPANY, LP 1 Pershing Plaza, Jersey City, NJ 07399 RBC CAPITAL MARKETS CORPORATION 60 South Street, PO Box 1160, Minneapolis, MN 55402 RYAN BECK & CO., INC. 18 Columbia Turnpike, Florham Park, NJ 07932 SANDLER O'NEILL & PARTNERS, LP 919 Third Avenue, Sixth Floor, New York, NY 10022 SCHWAB SOUNDVIEW CAPITAL MARKETS 111 Pavonia Avenue, East Jersey City, NJ 07310 annual highlights 2004 citizens & northern bank offices ATHENS MUNCY 428 South Main Street, Athens, PA 18810 3461 Route 405 Highway, Muncy, PA 17756 570-888-2291 570-546-6666 DUSHORE RALSTON 111 Main Street, Dushore, PA 18614 Thompson Street, Ralston, PA 17763 570-928-8124 570-995-5421 EAST SMITHFIELD SAYRE Main Street, East Smithfield, PA 18817 503 North Elmira Street, Sayre, PA 18840 570-596-3131 570-888-2220 ELKLAND SOUTH WILLIAMSPORT 104 Main Street, Elkland, PA 16920 2 East Mountain Ave., South Williamsport, PA 17702 814-258-5111 570-601-3016 KNOXVILLE TIOGA 102 East Main Street, Knoxville, PA 16928 Main Street, Tioga, PA 16946 814-326-4151 570-835-5236 LAPORTE TOWANDA Main Street, Laporte, PA 18626 428 Main Street, Towanda, PA 18848 570-946-4011 570-265-6171 LIBERTY TROY Main Street, Liberty, PA 16930 Court House Square, Troy, PA 16947 570-324-2331 570-297-2158 MANSFIELD WELLSBORO 1085 South Main Street, Mansfield, PA 16933 90-92 Main Street, Wellsboro, PA 16901 570-662-1111 570-724-3411 MONROETON WILLIAMSPORT Route 220, Monroeton, PA 18832 130 Court Street, Williamsport, PA 17701 570-265-2157 570-320-0100 WYSOX Route 6, Wysox, PA 18854 570-265-9148
annual highlights 2004 [PHOTO OF CRAIG G. LITCHFIELD] shareholders' message insight craig g. litchfield, chairman, president, CEO the year in review We had plenty to keep us busy during 2004. Among the many initiatives were a core processing system conversion, the opening of two new offices in the Williamsport area, executing a definitive agreement to acquire Canisteo Valley Corporation and its subsidiary First State Bank, reorganizing our commercial banking management structure, complying with new SEC corporate governance requirements, applying for listing on the NASDAQ Small Cap market and striving for continued excellence in customer service. With the commitment of your board of directors and the smart and dedicated people of Citizens & Northern, we have achieved our objectives. We are well positioned for more growth throughout our existing and new market areas. Our future plans for the Lycoming/Williamsport market include the addition of two new offices that should provide the delivery platforms for expanding our share of the retail market. For many years, we have believed that entry into the Southern Tier of New York holds opportunity for a locally focused community bank. With the future acquisition of First State Bank as a subsidiary of Citizens & Northern Corporation, we will be positioned to expand the Citizens & Northern market. It is hoped that the acquisition will be finalized by the second quarter of 2005. We are pleased that the First State Bank board and employees share our commitment to customer excellence. This combination will be beneficial to all stakeholders. Your board of directors authorized us to apply for listing our stock on the NASDAQ Small Cap market. It is hoped and expected that listing on the NASDAQ will provide more liquidity for current investors and will attract investment managers looking to add a strong company like C&N to their portfolios. On January 13th, 2005, our stock began trading on the NASDAQ SM under the symbol CZNC. Last year, our prediction for the equity and bond markets was right on target. The equity markets ended the year with respectable gains. The NASDAQ Composite was up 8.59%, the S&P 500 was up 10.87% and the Dow Jones industrial Average increased 3.15%. And as expected, the Federal Reserve began increasing its Fed Funds rate by 25 basis point increments beginning in June 2004. In total, the Federal Reserve increased the Fed Funds rate 5 times during the second half of 2004 to 2.25%. At the same time longer-term treasury rates (5-year and longer) remained relatively stable with inflation concerns under control. For banking, this means higher costs for funds and little, if any, increase in rates on loans and fixed income investments. It would appear that the Fed is positioned to increase the Fed Funds rate few more times during 2005, increasing the rate to the 3% to 4% range. Unless fears of inflation appear, it is likely that the longer-term rates will not increase at a similar pace. The national economic growth is still strong, albeit slowing, thus the year should be another good one for the equity markets. (Continued Page 2) page ---- ONE annual highlights 2004 [PHOTO OF CRAIG G. LITCHFIELD] shareholders' message insight craig g. litchfield, chairman, president, CEO financial highlights During 2004, we continued to grow our interest and dividend income while we reduced our interest expense. As a result, our interest margin increased by $3.63 million, or nearly 11.5% over 2003. This growth in interest margin was primarily driven by the 10.4% increase in our loan portfolio. During 2003, several of the bank stocks we held in our investment portfolios had appreciated to, what we believed to be, exceptionally high levels, and we decided to reap the gains that those levels offered. That strategy proved correct because many of those stocks later dropped in price during 2004. The same environment was not prevalent during 2004, and the opportunities for gains in what we believed to be well-valued securities were not as numerous. As a result, our gains on securities dropped by $1.9 million, or 40%. an investment in the future During 2004, we had substantial increases in operating expenses related to the core computer conversion and the start-up expenses and operations for the two new Williamsport area offices. Those additional expenses totaled more than $1.5 million. Another increase in expenses, $1.3 million, was due to the addition of new positions. These increased expenses are an investment in the future growth potential of your company's market share and net income. Total assets increased to $1.123 billion, up 5.3%. Deposits, including repo sweeps, increased to $697.7 million, 2.39%, despite the runoff of nearly $30 million in municipal deposits due to new school building projects. Trust assets under management increased $16.2% to $383 million. Shareholder equity, excluding unrealized gains and losses on available-for-sale securities, as a percentage of total assets remained fairly stable at 10.72%. Non-performing loans increased substantially above our historical average, and we are closely monitoring the portfolio and are continuing to maintain an adequate allowance for loan losses. Our 4th quarter dividend increased to 23 cents per share, bringing total dividends declared for 2004 to 89 cents, up 4.7%. (Continued Page 3) page ---- TWO annual highlights 2004 [PHOTO OF CRAIG G. LITCHFIELD] shareholders' message insight craig g. litchfield, chairman, president, CEO products and services Our Trust and Financial Management Group saw substantial growth in its assets under management during 2004. This growth will continue for some time to come. The Daily Valuation 401 (k) product is proving very attractive to area employers. Our Internet Banking Service has over 8,500 retail customers realizing the convenience and security of banking over the Internet. Internet Banking is one more way we enhance our value to our customers. projects In addition to the acquisition of First State Bank, we have several projects planned for 2005. The growth in administrative, trust and commercial lending staff has put us in need of more room. To meet that need, a new administrative building will be erected within two blocks of the Wellsboro main office. The facility will provide about 17,000 square feet of room. In Lycoming County, we have sales agreements on two sites for future full service offices. We will begin the construction of a full service facility in Jersey Shore by the second quarter of the year. The construction of the second building will most likely begin by the end of the year. We are in a growth mode that positions us for continued increases in assets and net income. people It is our people who provide us the opportunity for optimism about our future. Without the commitment and dedication of our team members, our expectations for success as we enter new markets would not exist. The C&N team is committed to continually improving its customer service. As time passes, the proverbial change of the guard occurs. During 2004, six of our longer term employees retired from banking: Russ Bauman after 33 years, Brian Canfield after 25 years, Carol Tobias after 21 years, Elaine Johnston after 20 years, Beverly Heatley after 17 years and Klas Anderson after 16 years. We will miss their 132 years of experience and commitment to C&N. We wish them the best for the future. page ---- THREE annual highlights 2004 five-year performance [PICTURE] net income (in millions) [BAR CHART] 2000 $ 8.5 2001 $12.1 2002 $15.0 2003 $16.3 2004 $14.9
total shareholders' equity (in millions) [BAR CHART] 2000 $ 89.0 2001 $100.2 2002 $115.8 2003 $125.3 2004 $131.6
total assets (in millions) [BAR CHART] 2000 $ 719 2001 $ 867 2002 $1,019 2003 $1,067 2004 $1,123
deposits (in millions) [BAR CHART] 2000 $529 2001 $576 2002 $640 2003 $658 2004 $677
page ---- FOUR annual highlights 2004 five-year performance [PICTURE] net loans (in millions) [BAR CHART] 2000 $323 2001 $374 2002 $445 2003 $519 2004 $573
cash dividends declared [BAR CHART] 2000 $0.65 2001 $0.71 2002 $0.77 2003 $0.85 2004 $0.89
*Cash dividends per share for 2000-2002 adjusted for the effects of a 3-for-2 stock split issued in April, 2003. In addition to cash dividends, a 1% stock dividend has been declared for each year. stockholder inquiries A copy of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2004, as required to be filed with the Securities and Exchange Commission, will be furnished to a stockholder without charge upon written request to the Corporation's Treasurer at the principal office at P.O. Box 58, Wellsboro, PA 16901. The information is also available through C&N's website at www.cnbankpa.com and at the website of the Securities and Exchange Commission at www.sec.gov. This statement has not been reviewed or confirmed for accuracy or relevance by the Federal Deposit Insurance Corporation. page ---- FIVE annual highlights 2004 quarterly share data [PICTURE] Trades of the Corporation's stock are executed through various brokers who maintain a market in the Corporation's stock. Effective January 13, 2005 the Corporation's stock began to be listed on the NASDAQ SmallCap Market with the trading symbol CZNC. Previously, the Corporation's stock was available through the Over-The-Counter Bulletin Board. The following table sets forth the approximate high and low sales prices of the common stock during 2004 and 2003: 2004
Dividend Declared High Low per quarter First Quarter $27.00 $25.00 $0.22 Second Quarter $25.50 $24.45 $0.22 Third Quarter $25.90 $24.20 $0.22 Fourth Quarter $27.00 $24.80 $0.23
plus 1% stock dividend 2003
Dividend Declared High Low per quarter First Quarter $21.63 $20.37 $0.21 Second Quarter $26.95 $21.00 $0.21 Third Quarter $26.95 $25.80 $0.21 Fourth Quarter $27.00 $25.80 $0.22
plus 1% stock dividend page ---- SIX annual highlights 2004 common stock and per share data [PICTURE]
2004 2003 2002 2001 2000 Net income per share - basic $ 1.82 $ 1.99 $ 1.83 $ 1.47 $ 1.03 Net income per share - diluted $ 1.81 $ 1.98 $ 1.83 $ 1.47 $ 1.03 Cash dividends declared per share $ 0.89 $ 0.85 $ 0.77 $ 0.71 $ 0.65 Stock dividend 1% 1% 1% 1% 1% Stockholders' equity per share (a) $ 16.08 $ 15.33 $ 14.18 $ 12.26 $ 10.84 Stockholders' equity per share, excluding accumulated other comprehensive income (loss) (a) $ 14.79 $ 13.86 $ 12.69 $ 11.61 $ 10.83 Weighted average shares outstanding- basic 8,185,466 8,170,651 8,170,159 8,184,716 8,206,549 Weighted average shares outstanding - diluted 8,233,992 8,219,366 8,192,047 8,206,604 8,208,297 Number of shares outstanding at year-end 8,102,646 8,014,625 5,285,606 5,234,800 5,207,244 Number of shares authorized 20,000,000 10,000,000 10,000,000 10,000,000 10,000,000
(a) for purposes of this computation, the number of outstanding shares has been increased for the effects of a 3-for-2 stock split issued in April, 2003, and for 1% stock dividends issued in January following each year-end. Contact us [PICTURE] Our service departments may be contacted directly: FUNDS MANAGEMENT: 90-92 Main St., Wellsboro, PA 16901 - 1-800-577-9397 ACCOUNT SERVICES: 90-92 Main St., Wellsboro, PA 16901 - 1-800-726-2265 BANKCARD SERVICES: RR#7, Wellsboro, PA 16901 - 1-800-676-6639 INTERNET BANKING: 90-92 Main St., Wellsboro, PA 16901 - 570-724-0266 www.cnbankpa.com C&N FINANCIAL SERVICES CORP: 64 Main St., Wellsboro, PA 16901 1-866-ASK-CNFS www.cnfinancialservices.com TRUST & FINANCIAL MANAGEMENT GROUP: 90-92 Main St., Wellsboro, PA 16901 - 1-800-487-8784 503 North Elmira St., Sayre, PA 18840 - 1-888-760-8192 428 Main St., Towanda, PA 18848 - 1-888-987-8784 130 Court St., Williamsport, PA 17701 - 1-866-732-7213 page ----- SEVEN annual highlights 2004 five-year summary of operations Profit [PICTURE] (In thousands) INCOME STATEMENT
2004 2003 2002 2001 2000 Interest income $ 57,922 $ 55,223 $ 57,285 $ 54,661 $ 51,643 Interest expense $ 22,606 $ 23,537 $ 26,315 $ 28,356 $ 30,145 ========== ========== ========== ========== ========== Interest margin $ 35,316 $ 31,686 $ 30,970 $ 26,305 $ 21,498 Provision for loan losses $ 1,400 $ 1,100 $ 940 $ 600 $ 676 ========== ========== ========== ========== ========== Interest margin after provision for loan losses $ 33,916 $ 30,586 $ 30,030 $ 25,705 $ 20,822 Other income $ 6,922 $ 6,595 $ 6,624 $ 6,120 $ 5,002 Securities gains $ 2,877 $ 4,799 $ 2,888 $ 1,920 $ 1,377 Other expenses $ 26,001 $ 22,114 $ 20,849 $ 18,671 $ 16,906 ========== ========== ========== ========== ========== Income before income tax provision $ 17,714 $ 19,866 $ 18,693 $ 15,074 $ 10,295 Income tax provision $ 2,851 $ 3,609 $ 3,734 $ 3,022 $ 1,819 ========== ========== ========== ========== ========== Net income $ 14,863 $ 16,257 $ 14,959 $ 12,052 $ 8,476 ========== ========== ========== ========== ========== BALANCE SHEET AT YEAR END Total securities (1) $ 479,626 $ 484,825 $ 513,597 $ 437,398 $ 343,596 Gross loans, excluding unearned discount $ 579,613 $ 524,897 $ 451,145 $ 379,228 $ 328,305 Total assets $1,123,002 $1,066,901 $1,018,768 $ 866,999 $ 719,335 Total deposits $ 676,545 $ 658,065 $ 640,304 $ 576,274 $ 528,967 Stockholders' equity, excluding accumulated other comprehensive income (3) $ 121,050 $ 113,306 $ 103,691 $ 94,903 $ 88,887 Total stockholders' equity $ 131,585 $ 125,343 $ 115,837 $ 100,187 $ 88,969 ========== ========== ========== ========== ==========
page ----- EIGHT annual highlights 2004 five-year summary of operations Profit [PICTURE] (In thousands) AVERAGE BALANCE SHEET
2004 2003 2002 2001 2000 Total securities, at amortized cost (1) $ 485,182 $ 474,406 $ 470,764 $ 412,654 $ 371,360 Gross loans, excluding unearned discount $ 551,352 $ 485,150 $ 410,670 $ 346,353 $ 318,382 Earning assets $ 1,036,534 $ 959,556 $ 881,434 $ 759,007 $ 689,743 Total assets $ 1,114,040 $ 1,034,720 $ 943,001 $ 805,229 $ 704,221 Total assets excluding unrealized gains/losses (3) $ 1,097,858 $ 1,014,424 $ 930,539 $ 798,590 $ 717,052 Total deposits $ 669,307 $ 651,026 $ 613,392 $ 544,579 $ 503,848 Stockholders' equity, excluding accumulated other comprehensive income (3) $ 117,695 $ 108,876 $ 99,361 $ 91,703 $ 87,258 Stockholders' equity $ 128,374 $ 122,271 $ 107,595 $ 96,021 $ 78,792 =========== =========== ========= ========= ========= FINANCIAL RATIOS Return on stockholders' equity, excluding accumulated other comprehensive income (2), (3) 12.63% 14.93% 15.06% 13.14% 9.71 Return on stockholders' equity (2) 11.58% 13.30% 13.90% 12.55% 10.76% Return on assets (2) 1.33% 1.57% 1.59% 1.50% 1.20% Stockholders' equity to assets, excluding accumulated other comprehensive income (2), (3) 10.72% 10.73% 10.68% 11.48% 12.17% Stockholders' equity to assets (2) 11.52% 11.82% 11.41% 11.92% 11.19% Stockholders' equity to loans (2) 23.28% 25.20% 26.20% 27.72% 24.75% Net income to: Total interest income 25.66% 29.44% 26.11% 22.05% 16.41% Interest margin 42.09% 51.31% 48.30% 45.82% 39.43% Dividends as a % of net income 48.54% 41.96% 41.17% 46.08% 60.19% =========== =========== ========= ========= =========
(1) Includes available-for-sale and held-to-maturity securities, and interest-bearing cash and due from banks. (2) Financial ratios calculated based on average balance sheet data. (3) Generally accepting accounting principles ("GAAP") require that available-for-sale securities be reported at fair value, with unrealized gains and losses excluded from earnings and reported separately through stockholders' equity, net of tax. Management believes there is an inherent mismatch between the income statement and balance sheet related to unrealized gains/losses that may create a material inconsistency in earnings-based ratios. Further, the amount of unrealized gains/losses may vary widely from period-to-period, depending on the financial markets as a whole and interest rate movements. Therefore, management has provided these "non-GAAP" amounts and ratios because we believe they provide meaningful information for evaluating the Corporation's financial position and results of operations. page ---- NINE ANNUAL HIGHLIGHTS 2004 quarterly financial DATA [PICTURE] The following table presents summarized quarterly financial data for 2004 (unaudited) (In thousands, except per share data) 2004 QUARTER ENDED
MARCH 31 JUNE 30 SEPT. 30 DEC. 31 -------- -------- -------- -------- Interest income $ 14,015 $ 14,343 $ 14,573 $ 14,991 Interest expense $ 5,703 $ 5,493 $ 5,665 $ 5,745 ======== ======== ======== ======== Interest margin $ 8,312 $ 8,850 $ 8,908 $ 9,246 Provision for loan losses $ 350 $ 350 $ 350 $ 350 ======== ======== ======== ======== Interest margin after provision for loan losses $ 7,962 $ 8,500 $ 8,558 $ 8,896 Other income $ 1,625 $ 1,855 $ 1,627 $ 1,815 Securities gains $ 964 $ 321 $ 459 $ 1,133 Other expenses $ 6,228 $ 6,289 $ 6,738 $ 6,746 ======== ======== ======== ======== Income before income tax provision $ 4,323 $ 4,387 $ 3,906 $ 5,098 Income tax provision $ 617 $ 698 $ 501 $ 1,035 ======== ======== ======== ======== Net income $ 3,706 $ 3,689 $ 3,405 $ 4,063 ======== ======== ======== ======== Net income per share - basic $ 0.45 $ 0.45 $ 0.42 $ 0.50 ======== ======== ======== ======== Net income per share - diluted $ 0.45 $ 0.45 $ 0.41 $ 0.49 ======== ======== ======== ========
INVESTOR INFORMATION [PICTURE] Independent Auditors PARENTE RANDOLPH, PC 400 Market Street, Williamsport, PA 17701 INFORMATION FOR INVESTORS The Annual Meeting of Shareholders will be held in the Arcadia Theater, Wellsboro, PA at 2:00 p.m. Tuesday, April 19th, 2005. General shareholder inquiries should be sent to: CITIZENS & NORTHERN CORPORATION 90-92 Main Street, PO Box 58, Wellsboro, PA 16901 STOCK TRANSFER AGENT American Stock Transfer & Trust Co., 59 Maiden Lane, Plaza Level, New York, NY 10038 800-278-4353 page ---- TEN ANNUAL HIGHLIGHTS 2004 quarterly financial DATA [PICTURE] The following table presents summarized quarterly financial data for 2003 (unaudited) (In thousands, except per share data) 2003 QUARTER ENDED
MARCH 31 JUNE 30 SEPT. 30 DEC. 31 -------- ------- -------- ------- Interest income $13,930 $13,943 $13,553 $13,797 Interest expense $ 6,243 $ 6,089 $ 5,655 $ 5,550 ======= ======= ======= ======= Interest margin $ 7,687 $ 7,854 $ 7,898 $ 8,247 Provision for loan losses $ 350 $ 250 $ 250 $ 250 ======= ======= ======= ======= Interest margin after provision for loan losses $ 7,337 $ 7,604 $ 7,648 $ 7,997 Other income $ 1,540 $ 1,628 $ 1,705 $ 1,722 Securities gains $ 1,721 $ 908 $ 660 $ 1,510 Other expenses $ 5,532 $ 5,356 $ 5,336 $ 5,890 ======= ======= ======= ======= Income before income tax provision $ 5,066 $ 4,784 $ 4,677 $ 5,339 Income tax provision $ 994 $ 864 $ 759 $ 992 ======= ======= ======= ======= Net income $ 4,072 $ 3,920 $ 3,918 $ 4,347 ======= ======= ======= ======= Net income per share - basic $ 0.50 $ 0.48 $ 0.48 $ 0.53 ======= ======= ======= ======= Net income per share - diluted $ 0.50 $ 0.48 $ 0.48 $ 0.53 ======= ======= ======= =======
page ---- ELEVEN annual highlights 2004 trust and financial management group
2004 2003 2002 2001 2000 (IN THOUSANDS) ---- ---- ---- ---- ---- Assets $ 383,062 $ 329,493 $ 285,221 $ 303,868 $ 327,063 Revenue $ 2,105 $ 1,733 $ 1,755 $ 1,576 $ 1,613
The composition of trust assets under management and accounts as of December 31, 2004 and 2003 are shown in the following table: (IN THOUSANDS)
INVESTMENTS 2004 2003 ACCOUNTS 2004 2003 ----------- ---- ---- -------- ---- ---- Mutual Funds $129,299 $ 93,804 Pension/profit Stocks $118,334 $109,145 sharing $162,129 $130,986 Bonds $107,954 $ 99,307 Investment Savings and management $120,237 $ 98,652 Money Market Trusts $ 84,043 $ 82,890 Funds $ 24,826 $ 24,893 Custody $ 12,459 $ 8,583 Real Estate $ 1,199 $ 901 Guardianships $ 1,177 $ 903 Miscellaneous $ 1,007 $ 1,217 Estates $ 3,017 $ 7,479 Mortgages $ 443 $ 226 ======== ======== =============== ======== ======== Total $383,062 $329,493 Total $383,062 $329,493
TRUST AND FINANCIAL MANAGEMENT GROUP OFFICERS [PICTURE] Deborah E. Scott, CFP, Executive Vice President and Senior Trust Officer Mark A. Huffman, Vice President and Trust Officer Rhonda J. Litchfield, Vice President and Trust Investment Officer Renee D. Laychur, Vice President and Trust Officer Larry D. Alderson, CFP, Assistant Vice President and Trust Officer Michael G. Charles, Assistant Vice President and Tax Officer Keith T. Safford, Employee Benefit Officer Mary J. Wood, Trust Officer Lori Brown, Trust Officer James D. Butters, Assistant Trust Officer Marla McIlvain, Assistant Trust officer page ---- TWELVE annual highlights 2004 citizens & northern corporation, bank officers [PICTURE] CITIZENS & NORTHERN CORPORATION OFFICERS Craig G. Litchfield Chairman of the Board, President and Chief Executive Officer Mark A. Hughes Treasurer Kathleen M. Osgood Corporate Secretary ADVISORY BOARD MEMBERS ATHENS AND SAYRE --------------------- ----------------------- --------------------- ----------------- Virginia L. Reap Warren J. Croft Max P. Gannon, Jr. R. Bruce Haner Susan E. Hartley George D. Howell Wayne E. Lowery David Rosenbloom Mary Theresa Sullivan DUSHORE --------------------- ----------------------- --------------------- ----------------- Helen W. Ferris Ronald A. Gutosky Leo F. Lambert Dennis K. McCarty Kerry A. Meehan EAST SMITHFIELD --------------------- ----------------------- --------------------- ----------------- Peggy A. Brown Roy L. Beardslee Thomas G. Furman Liston D. Pepper Edward L. Learn ELKLAND --------------------- ----------------------- --------------------- ----------------- Lynette Burrous Mary C. Heitzenrater Mark R. Howe John C. Kenyon William W. Roosa KNOXVILLE --------------------- ----------------------- --------------------- ----------------- Amy Wherley Gerald L. Bliss L. Grant Gehman Karl W. Koreck Leonard Simpson LAPORTE --------------------- ----------------------- --------------------- ----------------- Linda M. Etzel David L. Baumunk Robin A. Fiester William B. Saxe Ray E. Wheeland LIBERTY --------------------- ----------------------- --------------------- ----------------- Ann L. Yuscavage Lyle R. Brion Gary L. Dinnison Lawrence F. Mase John F. Wise, Jr. MANSFIELD --------------------- ----------------------- --------------------- ----------------- Diane Wilson Gary Ray Butters Clifford L. Cross, Jr. David Kurzejewski Roger D. Jarrett MUNCY --------------------- ----------------------- --------------------- ----------------- Dawn Myers James R. Fetter, Jr. Kenneth F. Fry Thomas D. Hess RALSTON --------------------- ----------------------- --------------------- ----------------- Courtney Baker George E. Bittner William W. Brooks, III Richard T. Demitras TIOGA --------------------- ----------------------- --------------------- ----------------- Brett Kennedy C.Frederick LaVancher Leisa L. LaVancher Dirk D'Haene TOWANDA AND MONROETON --------------------- ----------------------- --------------------- ----------------- Valerie W. Kinney James A. Bowen W. John Greenland Jeffrey A. Smith James E. Towner Deborah J. Weisbrod TROY --------------------- ----------------------- --------------------- ----------------- Mark C. Griffis Dennis F. Beardslee Roy W. Cummings, Jr. J. Robert Garrison Gregory W. Powers Evan S. Williams, Jr. WELLSBORO --------------------- ----------------------- --------------------- ----------------- Todd Coolidge Donald R. Abplanalp J. Robert Bower Robert F. Cox, Jr. R. Robert DeCamp Craig Eccher Jan E. Fisher Edward H. Owlett III F. David Pennypacker WILLIAMSPORT AND SOUTH WILLIAMSPORT --------------------- ----------------------- --------------------- ----------------- Keith Boatman James Bower, Jr. Daniel Mathers Raymond Mattie Ann M. Tyler Steven Uzupis WYSOX --------------------- ----------------------- --------------------- ----------------- Debra S. Kitchart Lucille P. Donovan Robert L. Fulmer Gary Hennip Mark W. Smith Walter E. Warburton, Jr.
page ---- THIRTEEN annual highlights 2004 citizens & northern, bank officers [PICTURE] CITIZENS & NORTHERN BANK OFFICERS
Name Title Branch Craig G. Litchfield Chairman, President and Chief Executive Officer Wellsboro Dawn A. Besse Executive Vice President and Director of Sales, Service Wellsboro and Employee Development Mark A. Hughes Executive Vice President and Chief Financial Officer Wellsboro Thomas L. Rudy, Jr. Executive Vice President and Director of Branch Delivery Wellsboro Deborah E. Scott Executive Vice President and Senior Trust Officer Wellsboro Thomas L. Briggs Vice President - Facilities Management Wellsboro Carl M. Chambers Vice President/Western Region Commercial Team Leader Wellsboro Rick J. Cisco Vice President and Senior Systems Analyst Wellsboro Terry R. Depew Vice President/Regional Lending Specialist Sayre Helen W. Ferris Vice President and Branch Manager Dushore Marisa A. Flynn Vice President/Loan Administrator Williamsport Mark C. Griffis Vice President/Branch Manager Troy Roberta C. Heck Vice President and Western Regional Executive Wellsboro Harold F. Hoose, III Vice President/Eastern Region Commercial Team Leader Sayre Mark A. Huffman Vice President and Trust Officer Williamsport Michelle M. Karas Vice President and Marketing Coordinator Williamsport Scott A. Keck Vice President and Branch Operations Coordinator Wellsboro Karen L. Keck Vice President and Deposit Operations Coordinator Wellsboro Renee D. Laychur Vice President and Trust Officer Williamsport James P. Lazorka Vice President and Southern Regional Executive Williamsport Rhonda J. Litchfield Vice President and Trust Investment Officer Wellsboro Daniel Manetta Vice President and Director of Education Williamsport Glenda R. Marzo Vice President and Internal Auditor Wellsboro Kim L. Miller Vice President and Regional Lending Specialist Wellsboro Kathleen M. Osgood Corporate Secretary Wellsboro James E. Parks Vice President and Eastern Regional Executive Towanda Philip A. Prough Vice President/Manager of Brokerage Services Wellsboro John M. Reber Vice President and Director of Risk Management Wellsboro James H. Shelmire Vice President and Senior Systems Analyst Wellsboro Bruce Smithgall Vice President/Southern Regional Commercial Team Leader Williamsport Joseph A. Snell Vice President and Comptroller Towanda Nancy L. Tubbs Vice President, Compliance Officer and IRA Administrator Wellsboro Kevin Weinhoffer Vice President/Commercial Lending Williamsport Ann L. Yuscavage Vice President and Branch Manager Liberty Jeffery E. Aeppli Assistant Vice President/Commercial Loan Officer Wysox Larry D. Alderson Assistant Vice President and Trust Officer Sayre Darci Baird Assistant Vice President-Senior Financial Consultant Sayre Keith A. Boatman Assistant Vice President and Branch Manager Williamsport Peter J. Boergermann Assistant Vice President-Senior Network Engineer Wellsboro Rosalie L. Bordas Assistant Vice President/Account Services Manager Wellsboro Coleen Bowen Assistant Vice President/Mortgage Lending Specilist Wellsboro Lori Brown Trust Officer Towanda Peggy A. Brown Assistant Vice President and Branch Manager East Smithfield Keith C. Cavanaugh Assistant Vice President/BankCard Sales Manager BankCard Services Michael G. Charles Assistant Vice President and Tax Officer Wellsboro
page ---- FOURTEEN annual highlights 2004 CITIZENS & NORTHERN BANK OFFICERS
Name Title Branch ---- ----- ------ Todd Coolidge Assistant Vice President and Branch Manager Wellsboro Shelley L. D'Haene Internet Banking Coordinator Wellsboro Linda M. Etzel Assistant Vice President and Branch Manager Laporte Joan L. Grenell Assistant Vice President/Staff Accountant Towanda William C. Holmes Assistant Vice President/Loan Officer Troy Brett W. Kennedy Assistant Vice President and Branch Manager Tioga Valerie W. Kinney Assistant Vice President and Branch Manager Towanda Debra S. Kithcart Assistant Vice President and Branch Manager Wysox Steven J. Moore Assistant Vice President/Workout and Recovery Officer Williamsport Dawn L. Myers Assistant Vice President and Branch Manager Muncy Jeffrey B. Osgood Human Resource Director Wellsboro Eileen K. Ranck Assistant Vice President and BankCard Services Manager BankCard Services Virginia L. Reap Assistant Vice President and Branch Manager Athens Christopher J. Rell Assistant Vice President/Appraisal Department Manager Williamsport David C. Schucker Assistant Vice President/Loan Officer Troy Stacey A. Sickler Assistant Vice President/Manager Mortgage Lending Sayre Mary J. Wood Assistant Vice President and Trust Officer Wellsboro Sandra G. Andrews Assistant Cashier/Customer Investment Rep/Trust Wellsboro Courtney Baker Assistant Cashier and Branch Manager Ralston Deborah K. Beck Assistant Cashier/Loan Officer Tioga Margaret J. Black Assistant Cashier/Loan Officer Laporte Joan M. Blackwell Assistant Cashier/Loan Officer Liberty Alison S. Broughton Assistant Cashier/Loan Officer Wellsboro Claudia Brown Assistant Cashier and Operations Manager Wellsboro Lynette M. Burrous Assistant Cashier and Branch Manager Elkland James D. Butters Assistant Trust Officer Wellsboro Marcella J. Chaykosky Assistant Cashier/Loan Officer Sayre Charlene R. Clark Assistant Cashier and Operations Manager Wellsboro William O. Cook Assistant Cashier/Assistant BankCard Sales Manager Wellsboro Dorine M. Crisman Assistant Cashier/Loan Officer Wysox Raechelle N. Curry Assistant Cashier/Loan Officer Dushore Mark W. Elsbree Assistant Cashier/Loan Officer Sayre Diane B. Elvidge Assistant Cashier/Teller East Smithfield Yvonne M. Gill Assistant Cashier/Advertising and PR Manager Wellsboro Linda L. Gordner Assistant Cashier/Loan Officer Muncy George M. Greeley Assistant Cashier/Loan Officer Wellsboro Kathy L. Griffis Assistant Cashier/Loan Officer Athens Teri L. Hackett Assistant Cashier and Funds Management Officer Wellsboro Rosalie H. Hall Assistant Cashier and Branch Operations Manager Troy Kelly Isaacson Assistant Cashier/Loan Officer Mansfield Matthew A. Kranz Assistant Cashier/Mortgage Lending Specialist South Williamsport Marla Mcllvain Assistant Trust Officer Wellsboro Sandra J. McNeal Assistant Cashier/Loan Officer East Smithfield Sandra A. Parulas Assistant Cashier/Teller and CSR Specialist Wellsboro David Poust Assistant Cashier/Commercial Loan Officer Muncy Joan E. Rohe Assistant Cashier and Staff Accountant Towanda Amir Sabanovic Assistant Cashier/Commercial Loan Officer Sayre Keith T. Safford Employee Benefit Officer/Trust Williamsport Linda Prough-Shuey Assistant Cashier/Human Resource Administrator Wellsboro Chad R. Smith Assistant Cashier/Loan Officer Towanda Wendy Smith Assistant Cashier/Assistant Account Services Manager Wellsboro Debra J. Topf Assistant Cashier/Loan and CSR Specialist Wellsboro Amy B. Wherley Assistant Cashier/Branch Manager Knoxville Brenda B. Whiteley Assistant Cashier/Loan Officer Dushore Diane K. Wilson Assistant Cashier and Branch Manager Mansfield
page ---- FIFTEEN annual highlights 2004 citizens & northern bank board of DIRECTORS [PICTURE] Our 2005 Board of Directors, seated, left to right: Karl W. Kroeck, Jan E. Fisher, Ann M. Tyler, Edward L. Learn, Leonard Simpson, J. Robert Bower and Leo F. Lambert; standing, left to right: F. David Pennypacker, R. Robert DeCamp, R. Bruce Haner, Susan E. Hartley, Dennis F. Beardslee, Craig G. Litchfield, James E. Towner and Edward H. Owlett III. BOARD OF DIRECTORS: Leo F. Lambert, President and General Ann M. Tyler, Certified Public Accountant, Dennis F. Beardslee, Owner, Terrace Lanes Manager, Fitzpatrick & Lambert, Inc. Ann M. Tyler CPA, PC Bowling Center Edward L. Learn, former owner, Learn DIRECTORS EMERITI R. Robert DeCamp, President, Patterson Hardware and Building Supply J. Robert Bower, Pharmacist Lumber Co., Inc. Craig G. Litchfield, Chairman of the Board, F. David Pennypacker, Retired, formerly Jan E. Fisher, Executive Director for President and Chief Executive Officer Certified Public Accountant, Pennypacker Healthcare Services, Laurel Health System & Gooch, PC Edward H. Owlett, III, President and CEO R. Bruce Haner, auto buyer for new car of Putnam Company Lawrence F. Mase, Retired, formerly dealers president of Mase's, Inc. Susan E. Hartley, Attorney at Law Leonard Simpson, Attorney at Law Donald E. Treat, Retired, former owner James E. Towner, Publisher of the Daily of Treat Hardware Karl W. Kroeck, farmer and Sunday Review
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