Citizens & Northern (CZNC) AI Stock Analysis

• Market Cap: $388.29M
• Dividend Yield: 5.43%
• Average Volume (3M): 46.29K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.67
• Revenue Growth: 5.76%
• EPS Growth: 21.85%
• Country: US
• Employees: 386
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.56
• Shares Outstanding: 17,910,242
• 10 Day Avg. Volume: 42,264
• 30 Day Avg. Volume: 46,289
• PEG Ratio: -1.01
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 11.44
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 4.91
• Enterprise Value/Ebitda: 16.45
• 1Y Price Target: $23.50
• Price Target Upside: 19.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.52
• Revenue Forecast (FY): $146.90M

• Rating: 67 Neutral
• Price Target: $24.00 ▲(22.08% Upside)
• Action: Downgraded Date: 03/07/26
• Date: Action: Downgraded 03/07/26

The score is driven primarily by solid (but slowing) financial performance—stable cash generation and improved leverage offset by revenue decline, margin compression, and weaker ROE. Valuation is supportive with a moderate P/E and high dividend yield, while technicals are mixed with near-term weakness despite being above key longer-term moving averages.

Positive Factors

Improving leverage

Citizens & Northern has materially reduced leverage over recent years, with debt-to-equity falling to ~0.55 in 2025. Lower leverage enhances capital resilience, reduces funding strain in stressed environments, and increases flexibility for lending, dividends, and strategic investments over the medium term.

Consistent cash generation

Operating cash flow has been reliably positive and free cash flow in 2025 approximated net income, indicating high earnings quality. Durable cash generation supports dividend payments, loan funding and reserve building, lowering dependence on volatile wholesale funding across a 2–6 month horizon and beyond.

Committed dividend policy

A regular quarterly dividend reflects disciplined capital allocation and management focus on shareholder returns. For a regional bank, consistent dividends signal stable internal capital and confidence in cash flow, reinforcing long-term investor support and discipline in capital planning and payouts.

Negative Factors

Revenue decline

Revenue cooled meaningfully, falling ~3.3% in 2025 after earlier growth. Persistent revenue weakness reduces room to absorb expense or credit shocks, constrains reinvestment in products and branches, and can pressure medium-term profitability if growth drivers are not restored.

Margin compression and weaker ROE

Net margin has compressed from earlier highs and ROE has fallen to ~6.9%. Lower profitability per unit of equity suggests reduced efficiency and profitability headroom, making returns more sensitive to credit losses or rising funding costs and limiting long-term capital accumulation.

Limited cash-flow momentum

Although FCF matched net income in 2025, growth was largely flat or slightly negative in prior years. This uneven cash-flow momentum limits capacity to expand lending or invest in technology without impacting dividends or capital ratios, constraining durable operational scaling.

Citizens & Northern Business Overview & Revenue Model

Company Description

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. The company offers lending products include commercial, mortgage, and consumer loans, as well as specialized instruments, such as commercial letters-of-credit; and deposit products, including various types of checking accounts, passbook and statement savings accounts, money market accounts, interest checking accounts, individual retirement accounts, and certificates of deposits. It also offers wealth management services, including administration of trusts and estates, retirement plans, and other employee benefit plans, and investment management services; and a range of personal and commercial insurance products; mutual funds, annuities, educational savings accounts, and other investment products through registered agents. In addition, the company reinsures credit and mortgage, life and accident, and health insurance products. As of December 31, 2021, it had 31 branch offices, including 23 in the Northern tier/Northcentral region of Pennsylvania, 2 in the Southern tier of New York State, 4 in Southeastern Pennsylvania, and 2 in Southcentral Pennsylvania, as well as a lending office in Elmira, New York. The company was founded in 1864 and is based in Wellsboro, Pennsylvania.

How the Company Makes Money

Citizens & Northern generates revenue primarily through interest income from its loan portfolio, which includes commercial loans, consumer loans, and real estate mortgages. Additionally, the bank earns non-interest income from fees associated with various banking services, such as account maintenance, ATM usage, and transaction services. Wealth management services, including investment advisory and fiduciary services, also contribute to its revenue streams. The company has established partnerships with local businesses and community organizations, enhancing its customer base and service offerings. Economic factors such as interest rates and market conditions also play a significant role in influencing its earnings.

Citizens & Northern Financial Statement Overview

Summary

Overall fundamentals are sound but not accelerating. Revenue has slipped (~3.3% decline in 2025) and net margins have compressed materially versus prior highs, weighing on ROE (~6.9% in 2025). Offsetting this, the balance sheet has de-levered (debt-to-equity ~0.55 in 2025) and cash generation remains steady with positive free cash flow that roughly matches net income in 2025.

Income Statement

Revenue growth has cooled meaningfully, moving from strong growth earlier in the period to a slight decline in 2025 (annual revenue down ~3.3%). Profitability remains solid for a regional bank, but margins have compressed from 2021–2022 highs (net margin down to ~15.2% in 2025 vs. ~28.0% in 2021), and operating profit has trended lower versus prior peaks—suggesting a more challenging earnings environment.

Balance Sheet

Leverage looks moderate and improving recently: debt-to-equity declined to ~0.55 in 2025 from ~0.75–0.81 in 2023–2024, which adds balance-sheet resilience. Return on equity is positive but has weakened versus prior years (about 6.9% in 2025 vs. ~9–10% in 2022–2024), indicating less efficient capital profitability. Overall asset growth is evident over time, but profitability on equity is the key offset.

Cash Flow

Cash generation appears steady and supportive: operating cash flow has been consistently positive (~$32–35M annually since 2021). Free cash flow is also positive and in 2025 roughly matches net income (free cash flow to net income ~1.0), a constructive signal for earnings quality. The main weakness is that free cash flow growth has been mostly flat to slightly negative in several years (before rebounding sharply in 2025), implying limited underlying cash flow momentum.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	154.19M	155.47M	136.24M	115.48M	108.95M
Gross Profit	100.75M	104.31M	102.95M	98.70M	98.73M
EBITDA	28.64M	34.05M	32.63M	34.74M	39.82M
Net Income	23.43M	25.96M	24.15M	26.62M	30.55M
Balance Sheet
Total Assets	3.13B	2.61B	2.52B	2.45B	2.33B
Cash, Cash Equivalents and Short-Term Investments	554.66M	348.61M	472.63M	553.08M	622.63M
Total Debt	193.05M	207.67M	211.76M	181.78M	77.56M
Total Liabilities	2.79B	2.34B	2.25B	2.20B	2.03B
Stockholders Equity	341.71M	275.28M	262.38M	249.32M	301.40M
Cash Flow
Free Cash Flow	28.13M	31.13M	31.28M	31.31M	32.98M
Operating Cash Flow	32.00M	33.03M	33.55M	34.60M	34.84M
Investing Cash Flow	196.00K	-20.94M	-53.20M	-234.69M	-103.89M
Financing Cash Flow	-111.07M	58.70M	24.73M	151.94M	68.88M

Citizens & Northern Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CZNC, the sentiment is Negative. The current price of 19.66 is below the 20-day moving average (MA) of 22.32, below the 50-day MA of 22.27, and below the 200-day MA of 19.94, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CZNC.

Citizens & Northern Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCB	70 Outperform	$307.84M	8.21	9.62%	3.57%	10.93%	42.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CZNC	67 Neutral	$388.29M	13.73	7.79%	5.43%	5.76%	21.85%
FNLC	67 Neutral	$302.95M	8.51	12.70%	5.24%	10.46%	18.70%
PLBC	67 Neutral	$333.94M	9.72	13.35%	2.63%	11.98%	-10.12%
CBAN	62 Neutral	$402.79M	10.64	8.98%	2.55%	6.92%	26.93%
FSBW	56 Neutral	$277.86M	9.19	10.77%	3.17%	4.43%	-12.94%

Citizens & Northern Corporate Events

Citizens & Northern Declares Regular Quarterly Cash Dividend

On January 22, 2026, Citizens & Northern Corporation’s board declared a regular quarterly cash dividend of $0.28 per share, payable on February 13, 2026 to shareholders of record as of February 2, 2026. The move underscores the company’s continued commitment to returning capital to shareholders through consistent dividend payments, signaling stability in its capital management policy.

The most recent analyst rating on (CZNC) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Citizens & Northern stock, see the CZNC Stock Forecast page.