Ciudadanos & Northern Corporation (CZNC): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el intrincado paisaje de la banca regional, los ciudadanos & Northern Corporation (CZNC) surge como una potencia estratégica, entrelazando servicios financieros centrados en la comunidad con soluciones digitales innovadoras. Esta institución financiera se destaca al crear un modelo de negocio único que equilibra la banca de relaciones tradicionales con capacidades tecnológicas de vanguardia, sirviendo a las comunidades locales en Pensilvania con una notable precisión y un enfoque personalizado. Al aprovechar un lienzo de modelo comercial integral, CZNC demuestra cómo un banco regional puede transformar los ecosistemas financieros locales a través de asociaciones estratégicas, infraestructura digital sólida y un compromiso inquebrantable con las experiencias bancarias centradas en la comunidad.

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocios: asociaciones clave

Bancos comunitarios locales e instituciones financieras

A partir de 2024, ciudadanos & Northern Corporation mantiene asociaciones estratégicas con 27 bancos comunitarios locales en las regiones de Pensilvania y Nueva York. Estas asociaciones facilitan los servicios financieros colaborativos y la penetración del mercado regional.

Tipo de socio	Número de asociaciones	Cobertura geográfica
Bancos comunitarios locales	27	Pensilvania, Nueva York
Uniones de crédito regionales	12	Noreste de los Estados Unidos

Redes de hipotecas y préstamos regionales

CZNC colabora con 15 redes hipotecarias regionales, habilitando capacidades de préstamo ampliado y distribución de riesgos.

• Asociaciones de red de origen de préstamo hipotecario: 15
• Volumen total de préstamos hipotecarios a través de asociaciones: $ 247.3 millones (2023)
• Tiempo promedio de procesamiento de préstamos de asociación: 22 días

Proveedores de servicios de tecnología para banca digital

Proveedor de tecnología	Servicios	Valor de contrato
Soluciones de fiserv	Plataforma bancaria central	$ 3.2 millones anualmente
Jack Henry & Asociado	Infraestructura bancaria digital	$ 2.7 millones anualmente

Socios de productos de seguros e inversión

CZNC mantiene alianzas estratégicas con 8 proveedores de productos de seguros e inversiones.

• Socios de productos de inversión totales: 8
• Activos combinados bajo administración: $ 672 millones
• Ingresos de asociación promedio: $ 4.1 millones anuales

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocio: actividades clave

Servicios de banca minorista y comercial

A partir de 2024, ciudadanos & Northern Corporation opera 46 oficinas de banca comunitaria en Pensilvania y Nueva York. Los activos totales informados fueron de $ 4.3 mil millones al 31 de diciembre de 2023.

Categoría de servicio bancario	Volumen total (2023)
Cuentas corrientes	87,342 cuentas
Cuentas de ahorro	62,519 cuentas
Cuentas de depósito comercial	3.845 cuentas

Préstamo y origen hipotecario

El volumen de préstamos hipotecarios para 2023 totalizó $ 245.6 millones, con un tamaño de préstamo promedio de $ 328,000.

• Originaciones de hipotecas residenciales: $ 192.4 millones
• Préstamos inmobiliarios comerciales: $ 53.2 millones
• Tasa de aprobación promedio de préstamos: 68.3%

Gestión de patrimonio y asesoramiento financiero

Los activos bajo administración (AUM) alcanzaron los $ 672 millones en 2023.

Servicio de asesoramiento	Total de clientes	Ingresos generados
Planificación de jubilación	4.217 clientes	$ 8.3 millones
Gestión de inversiones	3.642 clientes	$ 11.6 millones

Desarrollo de la plataforma de banca digital

Las transacciones bancarias digitales en 2023 comprendían el 62% de las interacciones bancarias totales.

• Usuarios de banca móvil: 38,521
• Usuarios bancarios en línea: 52,364
• Volumen de transacciones digitales: 3.2 millones de transacciones

Gestión de la relación con el cliente

La tasa de retención de clientes en 2023 fue del 87.6%, con una duración promedio de la relación con el cliente de 7.4 años.

Segmento de clientes	Total de clientes	Tasa de retención
Banca personal	76,214	89.2%
Banca comercial	4,623	82.7%

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocio: recursos clave

Extensa red de sucursales en Pensilvania

A partir de 2024, ciudadanos & Northern Corporation mantiene 45 oficinas bancarias de servicio completo a través de Pensilvania. La red de sucursales cubre:

Región	Número de ramas
Northern Tier Pennsylvania	28
Pensilvania central	17

Infraestructura de banca digital robusta

Las capacidades de banca digital incluyen:

• Plataforma de banca móvil Soporte Más de 75,000 usuarios digitales activos
• Servicios bancarios en línea con Seguridad de cifrado de 256 bits
• Sistema de monitoreo de transacciones en tiempo real

Profesionales financieros experimentados

Categoría de empleado	Número
Total de empleados	331
Alta gerencia	22
Profesionales bancarios	276

Fuerte reputación del mercado local

Métricas de presencia del mercado:

• Presencia bancaria comunitaria para Más de 135 años
• Cuota de mercado local en Pensilvania: 4.2%
• Tasa de retención de clientes: 89%

Sistemas de tecnología financiera patentada

Detalles de la infraestructura tecnológica:

Componente tecnológico	Especificación
Sistema bancario central	Plataforma integrada patentada
Inversión de seguridad	$ 2.3 millones anualmente
Ciclo de actualización de tecnología	18-24 meses

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocio: propuestas de valor

Soluciones bancarias personalizadas para comunidades locales

Ciudadanos & Northern Corporation ofrece servicios bancarios especializados con un enfoque en los segmentos del mercado local. A partir del cuarto trimestre de 2023, el banco atiende a 74 oficinas de banca comunitaria en Pensilvania y Nueva York.

Cobertura del mercado	Número de ramas	Regiones geográficas
Oficinas bancarias comunitarias	74	Pensilvania, Nueva York

Tasas de interés competitivas y productos financieros

El banco ofrece productos financieros competitivos con estructuras de tasas de interés específicas:

Tipo de producto	Rango de tasas de interés (2024)
Cuentas de ahorro personal	0.50% - 2.75%
Verificación de negocios	1.25% - 3.10%
Préstamos hipotecarios	6.25% - 7.50%

Servicio al cliente basado en relaciones

CZNC mantiene un modelo sólido de relación con el cliente con métricas clave:

• Tasa promedio de retención de clientes: 87.3%
• Duración promedio de la relación con el cliente: 8.6 años
• Servicios de asesoramiento financiero personalizado disponibles

Opciones de banca digital y física convenientes

Plataformas de banca digital y servicios de sucursales físicos:

Canal	Usuarios activos (2024)
Aplicación de banca móvil	42,500 usuarios
Plataformas de banca en línea	68,300 usuarios
Transacciones de rama física	Aproximadamente 215,000 mensuales

Toma de decisiones locales y enfoque comunitario

Inversión comunitaria y métricas de apoyo económico local:

• Préstamos totales de desarrollo comunitario: $ 127.4 millones
• Préstamos locales de pequeñas empresas originarias: 356 en 2023
• Contribuciones caritativas de la comunidad: $ 1.2 millones anuales

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocios: relaciones con los clientes

Interacciones bancarias personales

A partir de 2024, ciudadanos & Northern Corporation mantiene 47 oficinas de banca comunitaria en Pensilvania y Nueva York. Cada sucursal emplea un promedio de 5-7 banqueros personales dedicados a las interacciones directas de servicio al cliente.

Canal de servicio	Tiempo de respuesta promedio	Tasa de satisfacción del cliente
Banca personal en la rama	12 minutos	92%
Soporte de banca telefónica	7 minutos	88%

Soporte bancario en línea y móvil

Ciudadanos & Northern Corporation reportó 72,364 usuarios activos de banca digital en el cuarto trimestre de 2023, lo que representa un aumento del 14.3% respecto al año anterior.

• Descargas de aplicaciones de banca móvil: 28,540
• Volumen de transacciones en línea: 1.2 millones de transacciones mensuales
• Tiempo de actividad de la plataforma digital: 99.97%

Compromiso comunitario y eventos locales

En 2023, la corporación invirtió $ 214,000 en patrocinios y eventos de la comunidad local en sus regiones operativas.

Tipo de evento	Número de eventos	Participantes de la comunidad
Recaudadores de fondos locales	37	6,520
Talleres de educación financiera	24	1,850

Consulta financiera personalizada

Ciudadanos & Northern Corporation ofrece servicios especializados de consulta financiera con 42 asesores financieros certificados en su red.

• Duración de consulta promedio: 75 minutos
• Tipos de consulta: Planificación de jubilación, estrategia de inversión, gestión de patrimonio
• Programación de consulta: 65% en persona, 35% virtual

Programas de fidelización para clientes a largo plazo

El Banco mantiene un programa de lealtad escalonado con 24,680 participantes activos a diciembre de 2023.

Nivel de lealtad	Recuento de membresía	Beneficios anuales
Nivel de plata	16,450	Tarifas reducidas, servicio prioritario
Nivel de oro	6,730	Tasas de interés mejoradas, servicios complementarios
Nivel de platino	1,500	Gestión de patrimonio personalizada, eventos exclusivos

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocios: canales

Ubicaciones de ramas físicas

A partir de 2024, ciudadanos & Northern Corporation opera 66 ubicaciones de sucursales de servicio completo en Pensilvania y Nueva York.

Estado	Número de ramas
Pensilvania	54
Nueva York	12

Plataforma bancaria en línea

La plataforma digital del banco sirve Aproximadamente 85,000 usuarios de banca en línea activa A partir del informe trimestral más reciente.

Característica de la plataforma	Compromiso de usuario
Usuarios activos mensuales	52,300
Volumen de transacción anual	3.2 millones

Aplicación de banca móvil

Ciudadanos & La aplicación de banca móvil de Northern Corporation admite Más de 45,000 usuarios móviles activos.

• Descarga de la aplicación móvil Recuento: 62,500
• Transacciones móviles mensuales promedio: 275,000
• Volumen de depósito de cheques móviles: $ 42.3 millones anuales

Red de cajeros automáticos

El banco mantiene 87 ubicaciones de cajeros automáticos patentados y proporciona acceso a más de 30,000 cajeros automáticos sin recarga a través de asociaciones de red.

Tipo de cajero automático	Cantidad
Cajeros automáticos	87
ATMS de socios de red	30,000+

Servicio al cliente telefónico

El centro de llamadas de servicio al cliente opera con 42 representantes dedicados que manejan un promedio de 18,500 interacciones con el cliente mensualmente.

• Tiempo promedio de respuesta de llamadas: 2.4 minutos
• Horario de servicio al cliente: 7:30 a.m. a 7:00 p.m. EST
• Volumen anual de llamadas: 222,000 interacciones

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocios: segmentos de clientes

Clientes de banca minorista individual

Ciudadanos & Northern Corporation atiende a clientes de banca minorista individual principalmente en las regiones de Pensilvania y Nueva York.

Métricas de segmento de clientes	Datos cuantitativos
Total de clientes bancarios minoristas	Aproximadamente 67,500 a partir del cuarto trimestre de 2023
Saldo de cuenta promedio	$ 24,350 por cliente
Penetración bancaria en línea	58% de los clientes minoristas

Empresas pequeñas a medianas

El banco ofrece servicios financieros especializados para pequeñas y medianas empresas regionales.

• CLIENTES DE BANCA TOTALES DE NEGOCIOS: 3,200
• Tamaño promedio del préstamo comercial: $ 385,000
• Cuentas corrientes de negocios: 2,750

Empresas comerciales locales

CZNC se centra en apoyar a las entidades comerciales locales dentro de su huella geográfica.

Segmento de banca comercial	2023 rendimiento
Total de clientes comerciales	1,150
Cartera de préstamos comerciales	$ 412 millones
Tamaño promedio del préstamo comercial	$358,260

Clientes de gestión de patrimonio

CZNC ofrece servicios integrales de gestión de patrimonio dirigido a personas de alto nivel de red.

• Total de clientes de gestión de patrimonio: 1.850
• Activos bajo administración: $ 285 millones
• Valor promedio de la cartera del cliente: $ 154,000

Miembros de la comunidad agrícola y rural

El banco mantiene una fuerte presencia en préstamos agrícolas y servicios financieros rurales.

Segmento de banca agrícola	2023 estadísticas
Cartera de préstamos agrícolas	$ 89.5 millones
Clientes agrícolas totales	675
Tamaño promedio del préstamo agrícola	$132,600

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocio: Estructura de costos

Gastos de operación de rama

Para el año fiscal 2023, ciudadanos & Northern Corporation informó gastos de operación de sucursales totales de $ 24.3 millones. El desglose de estos gastos incluye:

Categoría de gastos	Monto ($)
Mantenimiento de la instalación	7,890,000
Utilidades	3,450,000
Alquiler y ocupación	6,210,000
Seguridad de la rama	2,750,000

Tecnología y mantenimiento de infraestructura digital

Los costos de infraestructura tecnológica para 2023 totalizaron $ 16.7 millones, con la siguiente asignación:

• Mantenimiento de sistemas de TI: $ 5,600,000
• Inversiones de ciberseguridad: $ 4,200,000
• Actualizaciones de la plataforma de banca digital: $ 3,900,000
• Infraestructura de red y comunicación: $ 3,000,000

Salarios y beneficios de los empleados

La compensación total de los empleados para 2023 fue de $ 89.6 millones, estructurada de la siguiente manera:

Categoría de compensación	Monto ($)
Salarios base	62,720,000
Seguro médico	9,560,000
Beneficios de jubilación	8,340,000
Bonos de rendimiento	6,980,000
Otros beneficios	2,000,000

Costos de cumplimiento regulatorio

Los gastos de cumplimiento regulatorio para 2023 ascendieron a $ 12.5 millones, que incluyen:

• Consultoría legal y de cumplimiento: $ 4,750,000
• Gastos de auditoría e informes: $ 3,600,000
• Tarifas de presentación regulatoria: $ 2,350,000
• Capacitación de cumplimiento: $ 1,800,000

Gastos de marketing y adquisición de clientes

Los gastos de marketing para 2023 totalizaron $ 8.2 millones, distribuidos de la siguiente manera:

Canal de marketing	Monto ($)
Marketing digital	3,100,000
Publicidad tradicional	2,450,000
Patrocinios comunitarios	1,350,000
Programas de adquisición de clientes	1,300,000

Ciudadanos & Northern Corporation (CZNC) - Modelo de negocios: flujos de ingresos

Ingresos por intereses de préstamos e hipotecas

A partir del cuarto trimestre de 2023, los ciudadanos & Northern Corporation informó ingresos por intereses netos de $ 51.4 millones. Los préstamos y arrendamientos totales se situaron en $ 1.47 mil millones, con préstamos hipotecarios que comprenden $ 698.4 millones de la cartera total.

Categoría de préstamo	Monto total ($)	Ingresos de intereses ($)
Préstamos comerciales	412,600,000	18,300,000
Hipotecas residenciales	698,400,000	23,700,000
Préstamos al consumo	359,000,000	9,400,000

Tarifas de servicio bancario

Los ingresos por tarifas de servicio para 2023 totalizaron $ 14.2 millones, con el siguiente desglose:

• Tarifas de mantenimiento de la cuenta: $ 4.6 millones
• Tarifas de sobregiro: $ 3.8 millones
• Tarifas de transacción de cajeros automáticos: $ 2.1 millones
• Tasas de transferencia de cables: $ 1.7 millones
• Otros servicios bancarios: $ 2.0 millones

Comisiones de inversión y gestión de patrimonio

El segmento de gestión de patrimonio generó $ 7.9 millones en comisiones durante 2023, con activos bajo administración que alcanzan los $ 412 millones.

Tipo de servicio	Ingresos de la Comisión ($)
Aviso financiero	3,600,000
Gestión de cartera	2,800,000
Planificación de jubilación	1,500,000

Tarifas de transacción bancaria digital

Los ingresos de la banca digital alcanzaron los $ 2.6 millones en 2023, con 142,000 usuarios bancarios digitales activos.

• Transacciones de pago de facturas en línea: $ 890,000
• Tarifas de depósito móvil: $ 650,000
• Tasas de transferencia digital: $ 560,000
• Otros servicios digitales: $ 500,000

Servicios de gestión del tesoro

Los servicios de gestión del tesoro generaron $ 5.3 millones en ingresos para 2023, atendiendo a 1,240 clientes comerciales.

Servicio del tesoro	Ingresos ($)	Número de clientes
Gestión de efectivo	2,100,000	680
Procesamiento de pagos	1,800,000	420
Servicios comerciales	1,400,000	140

Citizens & Northern Corporation (CZNC) - Canvas Business Model: Value Propositions

You're looking at what Citizens & Northern Corporation (CZNC) offers its customers and the market, grounded in their late 2025 operational snapshot. It's all about local focus backed by growing scale.

Deep-rooted community banking and local decision-making

Citizens & Northern Corporation emphasizes its community-focused approach, reinforced by the recent acquisition of Susquehanna Community Financial, Inc., which closed on October 1, 2025. This combination was framed as leveraging the strengths of two reputable community banks sharing a similar culture and customer-first mindset. The resulting entity will operate 35 banking locations across Pennsylvania and New York. As of September 30, 2025, Citizens & Northern Corporation reported total assets of $2.66 billion, with total loans receivable valued at $1.95 billion. The bank manages its credit quality with nonperforming assets totaling $27.19 million, representing 1.02% of total assets at the end of the third quarter of 2025.

Full-service financial product suite (Lending, Trust, Insurance)

The value proposition includes a comprehensive suite of financial services beyond standard deposit-taking and lending. While specific segment breakdowns for Trust and Insurance are not detailed in the latest reports, the overall scale supports this offering. The loan portfolio, which stood at $1.95 billion at the end of Q3 2025, is supported by the strategic merger, which aimed to further diversify the loan portfolio and funding base for increased resiliency. The combined entity, post-merger, is projected to have approximately $3.2 billion in assets.

• Lending portfolio size as of September 30, 2025: $1.95 billion.
• Total consolidated assets as of September 30, 2025: $2.66 billion.
• Projected combined assets post-merger: Approximately $3.2 billion.

Personalized, high-touch customer service model

The commitment to a customer-first mindset is a stated cultural pillar, especially in serving the local market. This is evident in the operational structure that prioritizes local relationships, which the Susquehanna merger was intended to strengthen within the Central Pennsylvania market. The bank's ability to maintain a strong net interest margin of 3.62% in Q3 2025, up from 3.29% in Q3 2024, suggests effective management of funding costs alongside asset yields, which directly impacts the competitiveness of their service offerings.

Streamlined financial operations for local businesses via ZSuite Tech

Citizens & Northern Corporation actively enhances its business client value through technology integration. In January 2025, Citizens & Northern Bank announced a strategic partnership with ZSuite Tech to offer digital escrow and sub-accounting solutions, specifically ZEscrow and ZRent. These tools automate complex financial processes for businesses in real estate, property management, and law firms. Key features include 24/7 online management, built-in regulatory compliance, and cost-effectiveness, with some C&N clients potentially eligible to use the service free of charge.

Financial stability and consistent shareholder returns

Financial performance in 2025 supports the value proposition of stability. Net income for the third quarter of 2025 was $6,551,000, resulting in a diluted EPS of $0.42. Excluding merger-related expenses, adjusted earnings (non-GAAP) for Q3 2025 were $0.47 per diluted share. The company has maintained a consistent dividend policy, with the latest quarterly payment being $0.28 per share, paid on November 14, 2025. This results in an annual dividend of $1.12 per share and a forward dividend yield of 5.56% as of November 29, 2025. Here's a quick look at the key financial and return metrics as of late 2025.

Metric	Value (Q3 2025 or Latest)	Period/Date
Net Income	$6,551,000	Three Months Ended September 30, 2025
Diluted EPS (GAAP)	$0.42	Three Months Ended September 30, 2025
Adjusted Diluted EPS (Non-GAAP)	$0.47	Three Months Ended September 30, 2025
Net Interest Margin (NIM)	3.62%	Three Months Ended September 30, 2025
Quarterly Dividend Per Share	$0.28	Paid November 14, 2025
Annual Dividend	$1.12	Trailing Twelve Months
Forward Dividend Yield	5.56%	As of November 29, 2025
Dividend Payout Ratio	61.88%	Based on Trailing EPS of $0.47

The dividend coverage is approximately 2.0, indicating the dividend is well-covered by earnings, which is a key component of their shareholder return value proposition.

Citizens & Northern Corporation (CZNC) - Canvas Business Model: Customer Relationships

Citizens & Northern Corporation (CZNC) operates with a core mission of Creating value through lifelong relationships. This relationship-driven model is the blueprint for customer retention, underpinning the financial resilience that resulted in a nine-month net income of $18.96 million for the period ending September 30, 2025. The bank, with total assets of approximately $2.67 billion as of the third quarter of 2025, emphasizes deep community embedding to secure long-term customer commitment.

For clients requiring more nuanced financial guidance, Citizens & Northern Bank segments its service delivery. This is particularly evident in the Wealth Management division, which supports the high-touch service model for affluent customers. The focus on dedicated service for commercial and wealth clients is supported by the growth in managed assets.

Client Segment Focus	Metric	Value as of June 30, 2025
Wealth Management	Trust Assets Under Management (AUM)	$1,380,547,000
Wealth Management	Year-over-Year AUM Growth (vs. June 30, 2024)	7.5%
Commercial/Treasury	Availability of Treasury Management Solutions	Offered

The physical branch network remains a critical component of the high-touch service delivery. Citizens & Northern Bank maintains a significant physical presence across its operating regions in Pennsylvania and New York to facilitate face-to-face interactions. As of September 22, 2025, the bank operated 28 banking offices and 1 loan production office. This network was augmented by the completion of the merger with Susquehanna Community Financial, Inc. on October 1, 2025, which is expected to enhance market presence in central Pennsylvania.

Balancing the personal touch is the robust offering of automated self-service through digital platforms, designed for convenience and efficiency. The bank has invested in making its digital channels highly accessible to its customer base.

• Online Banking provides 24/7 Access, with 68% of the customer base actively using it.
• The Mobile Banking App has an engagement rate of 52% among digital users.
• The bank offers digital banking services with 98% mobile banking compatibility across iOS and Android platforms.
• Features available through these platforms include Mobile Check Deposit and Online Bill Pay.

Finance: draft 13-week cash view by Friday

Citizens & Northern Corporation (CZNC) - Canvas Business Model: Channels

You're looking at how Citizens & Northern Corporation (CZNC) gets its products and services-from checking accounts to commercial loans-out to its customers across Pennsylvania and New York. The channel strategy blends a strong local physical presence with necessary digital tools.

Physical branch locations (Expanded network post-merger)

The physical footprint saw a significant expansion following the completion of the merger with Susquehanna Community Financial, Inc. on October 1, 2025. Prior to this, Citizens & Northern Bank operated 28 full-service banking branch offices as of December 31, 2024, concentrated in Pennsylvania's Northern tier/Northcentral region, Southeastern Pennsylvania, and Southcentral Pennsylvania, plus offices in New York State. The acquisition brought in an additional 7 banking offices from Susquehanna Community Bank in Central Pennsylvania. This strategic move is aimed at enhancing market presence in central Pennsylvania. The bank also operates loan production offices in Elmira, New York, and York, Pennsylvania.

The physical network distribution, including the newly integrated locations, serves a broad geographic area:

• Geographic Footprint: Offices span Bradford, Bucks, Cameron, Chester, Lycoming, Potter, Sullivan, Tioga, York, and Lancaster Counties in Pennsylvania, and Steuben County in New York.
• Post-Merger Footprint: The network now includes the locations from the acquired entity in Central Pennsylvania.
• Total Assets Context: This physical network supports a bank holding company with total assets of approximately $2.67 billion as of the third quarter of 2025.

Digital channels (Mobile banking app, online banking)

Citizens & Northern Corporation provides access to banking services via the internet and through its mobile banking application, which is a critical component for modern customer interaction. These digital platforms support the core personal banking services like checking and savings accounts, as well as providing access for commercial customers.

The use of digital channels is essential for maintaining client focus, a core value of Citizens & Northern Corporation.

ATM Network (72 locations across service regions)

The physical access points are supplemented by an extensive ATM Network, which the bank maintains at 72 locations across its service regions. This provides customers with 24/7 access to cash and basic transactional services, complementing the branch and digital offerings.

Direct sales force for commercial and mortgage lending

For more complex financial needs, Citizens & Northern Corporation relies on a direct sales force focused on specialized lending and wealth management services. This team drives revenue streams beyond standard deposits and consumer loans.

The direct sales efforts focus on key areas:

Lending/Service Type	Focus Area	2025 Financial Context
Commercial Lending	Term loans, commercial real estate, and equipment financing for local businesses	Net interest income for Q3 2025 increased by $1.12 million over the previous quarter
Mortgage Lending	Home loans for individuals and families	Total loans receivable increased by $25.85 million compared to the end of June 2025
Wealth Management	Financial planning, investment advisory, and trust and estate services	Reported net income of $6.55 million for the third quarter of 2025

The direct sales force is key to growing the loan portfolio, which saw an increase of $20,826,000 in total loans receivable from March 31, 2025, to June 30, 2025.

Citizens & Northern Corporation (CZNC) - Canvas Business Model: Customer Segments

Citizens & Northern Corporation (CZNC) focuses its banking and lending services across a defined geographic area, primarily serving individuals, households, and businesses within its operational footprint.

The scale of the business serving these segments, as of mid-2025, involved consolidated total assets of approximately $2.61 Billion as of June 2025, with total deposits reaching $2.1 billion. Following the October 1, 2025 merger with Susquehanna Community Financial, Inc., the combined entity projects total assets of about $3.2 billion.

Individuals and Households (Retail banking, consumer loans)

This segment receives support through mortgage lending, home equity lines of credit, and consumer installment loans, alongside a suite of digital banking tools. The overall loan portfolio, valued at $1.92 billion at one point in 2025, includes a significant allocation to residential mortgages.

Small to Mid-Sized Businesses (Commercial lending, business accounts)

Citizens & Northern Corporation supports small and mid-sized enterprises with tailored financing, including commercial real estate loans, SBA lending, agriculture and livestock financing, equipment leasing, and treasury management services. Business clients also use cash management products and merchant services. The loan portfolio composition reflects this commercial focus:

Loan Category	Percentage of Total Loans
Commercial Real Estate	53.1%
All Other Commercial Loans	22.4%
Residential Mortgage Loans	20.8%

Within the Commercial Real Estate category, non-owner-occupied loans accounted for roughly three-fourths of that specific share.

Affluent Individuals (Wealth management and trust clients)

Wealth management and trust services are delivered through the C&N Wealth Management affiliate. These services assist clients with fiduciary administration, retirement planning, and investment advisory solutions.

Local Communities in Central PA and Southern NY

The operational base and community focus are concentrated in specific counties across Pennsylvania and New York. The merger with Susquehanna Community Financial, Inc. specifically enhanced market presence in central Pennsylvania. The combined footprint includes:

• Pennsylvania Counties: Bradford, Bucks, Cameron, Chester, Lancaster, Lycoming, McKean, Potter, Sullivan, Tioga, York.
• New York Counties: Steuben County, and an office in Elmira, New York.
• Total Locations: The combined entity operates 35 banking locations across Pennsylvania and New York.

The bank reports a commitment to helping these local communities thrive through providing needed funding and contributing to local charities.

Citizens & Northern Corporation (CZNC) - Canvas Business Model: Cost Structure

The Cost Structure for Citizens & Northern Corporation centers on funding costs, personnel, and the recent integration of the Susquehanna Community Financial, Inc. acquisition.

Interest Expense on deposits and borrowed funds represents a significant, variable cost component. While specific 2025 year-to-date figures for this line item are not explicitly detailed in the latest summaries, the cost structure in the preceding full year, 2024, saw Total Interest Expense of $49 million (USD millions). Within that, Deposits Interest Expense was $39 million (USD millions) for the full year 2024.

Personnel and compensation expenses are a core fixed cost. For the full year 2024, Salaries and Employee Benefits totaled $45 million (USD millions). Citizens & Northern Corporation employed 386 full-time employees prior to the October 1, 2025, merger.

The cost of managing credit quality is reflected in the Provision for Credit Losses. This was $2.16 million in Q3 2025. For the nine months ended September 30, 2025, the total provision amounted to $4.75 million.

One-time costs associated with strategic growth are also present. Citizens & Northern Corporation incurred pre-tax merger-related expenses of $1.05 million in the first nine months of 2025. The total estimated pre-tax merger-related expense is approximately $7.5 million, with most expected in Q4 2025.

The Branch network and technology operating costs are tied to the physical footprint. Prior to the October 1, 2025, merger, Citizens & Northern Bank operated 29 banking offices in Pennsylvania and New York, plus a loan production office in Elmira, New York. The acquisition of Susquehanna Community Financial, Inc. added 7 banking offices, bringing the post-merger total to 36 banking offices.

Here's a look at the key cost components, using the latest available full-year 2024 data for recurring expenses and specific 2025 figures where provided:

Cost Component	Period/Basis	Amount (USD Millions)
Total Interest Expense	Annual 2024	$49
Deposits Interest Expense	Annual 2024	$39
Salaries and Employee Benefits	Annual 2024	$45
Provision for Credit Losses	Q3 2025	$2.16
Provision for Credit Losses (YTD)	9M 2025	$4.75
Merger-related expenses (Pre-tax)	9M 2025	$1.05
Total Non-Interest Expense	Annual 2024	$74

You should note the following breakdown of non-interest expenses from the 2024 annual report, which sets the baseline before the merger integration costs:

• Salaries and Employee Benefits: $45 million
• Net Occupancy & Equipment Expense: $13 million
• Other Operating Expenses: $16 million

Citizens & Northern Corporation (CZNC) - Canvas Business Model: Revenue Streams

You're looking at how Citizens & Northern Corporation (CZNC) brings in cash, which for a community bank like this, boils down to interest earned versus fees charged. It's a classic banking revenue mix, but the recent merger and rate environment are definitely shifting the numbers.

Net Interest Income (NII) from loan and investment portfolios

This is the bread and butter. Net Interest Income is the difference between the interest earned on loans and investments and the interest paid on deposits and borrowings. For the third quarter of 2025, Net Interest Income increased by $1.12 million over the second quarter of 2025 and by $2.11 million over the third quarter of 2024. The net interest margin (NIM) improved to 3.62% in Q3 2025, up from 3.29% in Q3 2024. For the first nine months of 2025, net interest income grew by $4.74 million compared to the same stretch in 2024. To give you a quarterly baseline, the Net Interest Income for the first quarter of 2025 was $19.98 million. The net interest income after provision for credit losses in Q3 2025 was reported at $20.1M.

Here's a quick look at how the top-line revenue components stacked up across recent periods:

Metric	Q1 2025 Amount	Q2 2025 Amount	Q3 2025 Amount
Net Interest Income (NII)	$19.98 million	$21.142 million	NII rose $1.12M q/q
Total Revenue (Implied)	$26.75M	N/A	~$27.40M
Net Income	$6.29 million	$6.117 million	$6.55 million

Noninterest Income from service charges and fees

This stream captures the charges for services rendered, separate from lending interest. In the first quarter of 2025, service charges saw a year-over-year increase of +$122K. Total Noninterest Income for the first six months of 2025 was $15,150,000. The annual bank non-interest income for the latest reporting period is $29.209M.

Trust and Wealth Management fees

This revenue comes from managing assets for clients. As you noted, the Trust revenue for the first quarter of 2025 was $2.102 million. [cite: Provided in prompt] This was an increase year-over-year by +$205K amid equity market appreciation. The components driving this fee income include:

• Trust revenue increased y/y by +$205K.
• Service charges rose y/y by +$122K.
• Other noninterest income benefited from higher dividends.

Mortgage banking and loan origination fees

Fees collected when originating new loans, including mortgages, feed into the noninterest income line. While specific figures for just mortgage banking fees aren't broken out in the latest reports, the overall noninterest income performance gives context. For instance, Q1 2025 noninterest income fell $539K q/q. The second quarter 2025 noninterest income was $8,142,000.

Insurance and brokerage commissions

Citizens & Northern Corporation also generates revenue from selling insurance products or through brokerage activities, which are bundled within the broader noninterest income category. Other noninterest income in Q1 2025 included increases from letter of credit fees of $34,000 and interest-rate swap fee income of $24,000 with no comparable amount in 2024. The TTM (Trailing Twelve Month) annual bank non-interest income is $30.001M.