NasdaqCM:CZNC

Stock Analysis Report

Executive Summary

Citizens & Northern Corporation operates as the bank holding company for Citizens & Northern Bank that provides a range of banking and mortgage services to individual and corporate customers in North Central Pennsylvania and Southern New York.

Rewards

PE ratio (16.9x) is below the US market (18.5x)

Earnings are forecast to grow 15.48% per year

Earnings have grown 4% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

ConnectOne Bancorp

NasdaqGS:CNOB

Share Price & News

How has Citizens & Northern's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CZNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

CZNC

1.1%

US Banks

0.7%

US Market


1 Year Return

1.7%

CZNC

21.0%

US Banks

18.2%

US Market

Return vs Industry: CZNC underperformed the US Banks industry which returned 21% over the past year.

Return vs Market: CZNC underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

CZNCIndustryMarket
7 Day0.6%1.1%0.7%
30 Day-3.5%0.8%1.5%
90 Day2.2%10.5%5.0%
1 Year6.5%1.7%24.6%21.0%20.8%18.2%
3 Year17.9%3.4%31.6%22.4%45.2%35.8%
5 Year66.2%31.7%79.1%59.2%71.6%52.7%

Price Volatility Vs. Market

How volatile is Citizens & Northern's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Citizens & Northern undervalued compared to its fair value and its price relative to the market?

16.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CZNC ($25.61) is trading above our estimate of fair value ($23.06)

Significantly Below Fair Value: CZNC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CZNC is poor value based on its PE Ratio (16.9x) compared to the Banks industry average (12.7x).

PE vs Market: CZNC is good value based on its PE Ratio (16.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CZNC is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: CZNC is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Citizens & Northern forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CZNC's forecast earnings growth (15.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CZNC's earnings (15.5% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: CZNC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CZNC's revenue (7.7% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CZNC's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CZNC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Citizens & Northern performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CZNC has high quality earnings.

Growing Profit Margin: CZNC's current net profit margins (27.6%) are lower than last year (28.5%).


Past Earnings Growth Analysis

Earnings Trend: CZNC's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: CZNC's earnings growth over the past year (8%) exceeds its 5-year average (4% per year).

Earnings vs Industry: CZNC earnings growth over the past year (8%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: CZNC's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Citizens & Northern's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CZNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: CZNC's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: CZNC's level of assets compared to its equity is low.

Allowance for Bad Loans: CZNC has a low allowance for bad loans.

Low Risk Liabilities: CZNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: CZNC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CZNC's loans are broadly funded by customer deposits.

Level of Bad Loans: CZNC has an appropriate level of bad loans (1%)


Next Steps

Dividend

What is Citizens & Northern's current dividend yield, its reliability and sustainability?

4.22%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: CZNC's dividend (4.22%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CZNC's dividend (4.22%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: CZNC's dividend payments have been volatile in the past 10 years.

Growing Dividend: CZNC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.2%), CZNC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Citizens & Northern's salary, the management and board of directors tenure and is there insider trading?

12.5yrs

Average board tenure


CEO

Brad Scovill (60yo)

4.8yrs

Tenure

US$859,765

Compensation

Mr. J. Bradley Scovill serves as President and Chief Executive Officer of Citizens & Northern Corporation and Citizens & Northern Bank and has been its Director since March 2015. Prior to joining the Corpo ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD859.77K) is below average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Board Age and Tenure

12.5yrs

Average Tenure

63yo

Average Age

Experienced Board: CZNC's board of directors are seasoned and experienced ( 12.5 years average tenure).


Insider Trading

Insider Buying: CZNC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$3,56409 Dec 19
Frank Pellegrino
EntityIndividual
Shares139
Max PriceUS$25.64
BuyUS$3,28812 Nov 19
Frank Pellegrino
EntityIndividual
Shares122
Max PriceUS$26.95
BuyUS$7,17107 Oct 19
Frank Pellegrino
EntityIndividual
Shares282
Max PriceUS$25.43
BuyUS$6,23007 Oct 19
Bobbi Kilmer
EntityIndividual
Shares245
Max PriceUS$25.43
BuyUS$4,95907 Oct 19
Timothy Schoener
EntityIndividual
Shares195
Max PriceUS$25.43
BuyUS$3,57710 Sep 19
Frank Pellegrino
EntityIndividual
Shares154
Max PriceUS$23.22
SellUS$23,41005 Sep 19
Leonard Simpson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$23.41
BuyUS$22,91628 Aug 19
Bobbi Kilmer
EntityIndividual
Shares981
Max PriceUS$23.36
BuyUS$8,35822 Aug 19
Aaron Singer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares350
Max PriceUS$23.88
BuyUS$5,99606 Aug 19
Leo Lambert
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares250
Max PriceUS$23.98
BuyUS$2,97405 Aug 19
Frank Pellegrino
EntityIndividual
Shares119
Max PriceUS$24.99
BuyUS$14,81431 Jul 19
Leo Lambert
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares576
Max PriceUS$25.72
BuyUS$2,82723 Jul 19
Terry Lehman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares114
Max PriceUS$24.80
BuyUS$7,56309 Jul 19
Frank Pellegrino
EntityIndividual
Shares290
Max PriceUS$26.08
BuyUS$6,23309 Jul 19
Bobbi Kilmer
EntityIndividual
Shares239
Max PriceUS$26.08
BuyUS$7,54020 Jun 19
Leo Lambert
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares290
Max PriceUS$26.00
BuyUS$2,51111 Jun 19
Frank Pellegrino
EntityIndividual
Shares93
Max PriceUS$27.00
SellUS$27,33329 May 19
Leonard Simpson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$27.36
BuyUS$1,99506 May 19
Frank Pellegrino
EntityIndividual
Shares70
Max PriceUS$28.50
BuyUS$12,73724 Apr 19
Terry Lehman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares460
Max PriceUS$27.69
BuyUS$6,23009 Apr 19
Jan Fisher
EntityIndividual
Shares231
Max PriceUS$26.97
BuyUS$4,98909 Apr 19
Bobbi Kilmer
EntityIndividual
Shares185
Max PriceUS$26.97
BuyUS$7,95609 Apr 19
Frank Pellegrino
EntityIndividual
Shares295
Max PriceUS$26.97
BuyUS$3,09812 Mar 19
Frank Pellegrino
EntityIndividual
Shares117
Max PriceUS$26.48
BuyUS$4,08411 Feb 19
Frank Pellegrino
EntityIndividual
Shares162
Max PriceUS$25.21
BuyUS$7,56208 Jan 19
Frank Pellegrino
EntityIndividual
Shares295
Max PriceUS$25.64
BuyUS$4,97308 Jan 19
Bobbi Kilmer
EntityIndividual
Shares194
Max PriceUS$25.64
BuyUS$6,20408 Jan 19
Jan Fisher
EntityIndividual
Shares242
Max PriceUS$25.64

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.2%.


Management Team

  • Deborah Scott (59yo)

    Executive VP and Director of the Trust Dept - Citizens & Northern Bank

    • Tenure: 0yrs
    • Compensation: US$320.31k
  • Mark Hughes (57yo)

    Treasurer & CFO

    • Tenure: 0yrs
    • Compensation: US$480.69k
  • Brad Scovill (60yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$859.77k
  • Patrick Donnelly

    Chairman of Canisteo Valley Corp

    • Tenure: 0yrs
  • Thomas Rudy (54yo)

    Executive VP and Director of Branch Delivery - Citizens & Northern Bank

    • Tenure: 0yrs
    • Compensation: US$269.73k
  • Harold Hoose (52yo)

    Executive VP and Director of Lending - Citizens & Northern Bank

    • Tenure: 0yrs
    • Compensation: US$384.15k
  • Stan Dunsmore (57yo)

    Executive VP and Chief Credit Officer of Citizens & Northern Bank

    • Tenure: 0yrs
    • Compensation: US$317.16k
  • Kimberly Battin

    Corporate Secretary

    • Tenure: 0yrs

Board Members

  • Leonard Simpson (70yo)

    Independent Director

    • Tenure: 30.9yrs
    • Compensation: US$77.50k
  • Dennis Beardslee (68yo)

    Independent Director

    • Tenure: 20.9yrs
    • Compensation: US$64.50k
  • Susan Hartley (61yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: US$66.80k
  • James Towner (72yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$72.40k
  • Leo Lambert (65yo)

    Chairman of the Board

    • Tenure: 5.2yrs
    • Compensation: US$85.40k
  • Brad Scovill (60yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$859.77k
  • Patrick Donnelly

    Chairman of Canisteo Valley Corp

    • Tenure: 0yrs
  • Edwin Schott

    Member of Advisory Board - Coudersport/Emporium/Port Allegany

    • Tenure: 0yrs
  • Terry Lehman (61yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$67.00k
  • Aaron Singer (47yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: US$61.90k

Company Information

Citizens & Northern Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Citizens & Northern Corporation
  • Ticker: CZNC
  • Exchange: NasdaqCM
  • Founded: 1864
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$350.934m
  • Shares outstanding: 13.70m
  • Website: https://www.cnbankpa.com

Number of Employees


Location

  • Citizens & Northern Corporation
  • 90-92 Main Street
  • Wellsboro
  • Pennsylvania
  • 16901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CZNCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 1990

Biography

Citizens & Northern Corporation operates as the bank holding company for Citizens & Northern Bank that provides a range of banking and mortgage services to individual and corporate customers in North Centr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:34
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.