Citizens & Northern (CZNC) AI Stock Analysis

• Market Cap: $297.72M
• Dividend Yield: 5.82%
• Average Volume (3M): 33.00K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.80
• Revenue Growth: 1.16%
• EPS Growth: 15.00%
• Country: US
• Employees: 386
• Sector: Financial
• Sector Strength: 88
• Industry: Banks - Regional
• EPS (TTM): 1.74
• Shares Outstanding: 15,482,046
• 10 Day Avg. Volume: 37,830
• 30 Day Avg. Volume: 32,998
• PEG Ratio: 0.74
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: 14.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Citizens & Northern's stock is supported by strong financial performance and a strategic merger that is expected to drive future earnings growth. While the technical analysis does not show immediate momentum, the stock's valuation is compelling due to a reasonable P/E ratio and a high dividend yield. These factors suggest a moderately positive outlook, with the merger being a significant positive catalyst.

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 Corporation generates revenue primarily through interest income derived from its loan portfolio, which includes commercial, residential, and consumer loans. The company also earns money from non-interest income sources such as fees for services like wealth management, insurance, and deposit account services. Additionally, Citizens & Northern benefits from partnerships with financial service providers and community investment initiatives, which enhance its product offerings and customer outreach, thereby contributing to its overall earnings.

Citizens & Northern Financial Statement Overview

Summary

Citizens & Northern exhibits strong financial health with robust revenue growth and profitability. The balance sheet is solid, with no leverage risk and a reasonable return on equity. While cash flow conversion is efficient, growth remains moderate. Overall, the company is well-positioned in the banking industry, with opportunities for further growth and stability.

Income Statement

Citizens & Northern has shown a solid revenue growth rate of 22.42% in the most recent year, indicating strong top-line performance. The gross profit margin remains strong at 100%, which is typical for the banking industry due to the nature of interest income. The net profit margin increased to 20.27%, reflecting improved profitability. However, the EBIT margin of 98.30% suggests limited cost effectiveness beyond interest income.

Balance Sheet

The balance sheet is strong with a debt-to-equity ratio of 0, indicating no leverage risk. The return on equity is 9.76%, showing a reasonable return for shareholders. The equity ratio is 10.97%, which is lower than ideal but typical for banks due to high liabilities in the form of deposits.

Cash Flow

Cash flow performance is stable with an operating cash flow to net income ratio of 1.27, indicating efficient conversion of income to cash. Free cash flow growth is modest at 5.6%, reflecting steady but slow growth potential. The free cash flow to net income ratio is 1.27, showing a good cash conversion rate.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
128.08M	104.63M	105.96M	103.82M	90.85M
	Gross Profit
128.08M	104.63M	105.96M	103.82M	90.85M
	EBIT
125.90M	45.00M	41.87M	37.69M	23.21M
	EBITDA
0.00	0.00	34.74M	39.82M	25.19M
	Net Income Common Stockholders
25.96M	24.15M	26.62M	30.55M	19.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
475.67M	537.48M	553.08M	622.63M	451.19M
	Total Assets
2.61B	2.52B	2.45B	2.33B	2.24B
	Total Debt
205.18M	209.38M	258.78M	77.56M	89.23M
	Net Debt
79.01M	152.51M	203.73M	-27.39M	-12.63M
	Total Liabilities
2.34B	2.25B	2.20B	2.03B	1.94B
	Stockholders Equity
275.28M	262.38M	249.32M	301.40M	299.76M
Cash Flow		Free Cash Flow
33.03M	31.28M	31.31M	32.98M	21.65M
	Operating Cash Flow
33.03M	33.55M	34.60M	34.84M	24.78M
	Investing Cash Flow
-20.94M	-53.20M	-234.69M	-103.89M	96.58M
	Financing Cash Flow
58.70M	24.73M	151.94M	68.88M	-56.47M

Citizens & Northern Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CZNC, the sentiment is Positive. The current price of 19.25 is above the 20-day moving average (MA) of 18.97, below the 50-day MA of 19.89, and below the 200-day MA of 19.47, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 43.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CZNC.

Citizens & Northern Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSBW	76 Outperform	$303.26M	8.99	11.87%	2.75%	7.52%	-4.22%
NECB	76 Outperform	$320.43M	6.53	15.25%	2.20%	11.43%	10.33%
CIVB	75 Outperform	$346.28M	9.86	9.07%	2.89%	9.51%	-2.12%
CZNC	73 Outperform	$297.72M	11.03	23.39%	5.82%	1.16%	15.00%
BCML	71 Outperform	$286.43M	12.37	7.28%	1.92%	2.11%	-5.15%
PBFS	70 Outperform	$297.31M	15.88	6.20%	―	27.04%	6.52%
Sector *	63 Neutral	$12.46B	9.56	8.14%	17044.64%	12.63%	-4.25%

Citizens & Northern Corporate Events

Citizens & Northern Announces Merger with Susquehanna

On April 23, 2025, Citizens & Northern Corporation (C&N) announced a merger agreement with Susquehanna Community Financial, Inc. (SQCF), where SQCF will merge into C&N, and Susquehanna Community Bank will merge into Citizens & Northern Bank. The merger, expected to close in the fourth quarter of 2025, will result in a combined entity with approximately $3.2 billion in assets, enhancing C&N’s market presence in Pennsylvania. The merger is anticipated to be accretive to earnings per share by 17% in 2026, with SQCF shareholders receiving 0.80 shares of C&N common stock for each SQCF share. The merger aims to expand C&N’s market reach, diversify its loan portfolio, and improve service offerings.

Spark’s Take on CZNC Stock

According to Spark, TipRanks’ AI Analyst, CZNC is a Neutral.

Citizens & Northern’s stock is bolstered by strong financial performance, with robust revenue growth and solid balance sheet metrics. The technical analysis suggests stability but lacks clear momentum, while the valuation is attractive due to a reasonable P/E and high dividend yield. These factors combine to provide a moderately positive outlook for the stock.

To see Spark’s full report on CZNC stock, click here.