Citizens & Northern (CZNC) AI Stock Analysis

• Market Cap: $391.29M
• Dividend Yield: 5.1%
• Average Volume (3M): 52.32K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.63
• Revenue Growth: 5.76%
• EPS Growth: 21.85%
• Country: US
• Employees: 386
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.47
• Shares Outstanding: 17,801,872
• 10 Day Avg. Volume: 70,200
• 30 Day Avg. Volume: 52,319
• PEG Ratio: 1.43
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 9.12
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 2.24
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 10.05
• 1Y Price Target: $22.00
• Price Target Upside: 11.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.89
• Revenue Forecast (FY): $110.00M

• Rating: 77 Outperform
• Price Target: $23.00 ▲(16.99% Upside)

Citizens & Northern's strong financial performance, supported by robust revenue growth and efficient cash flow, is a major positive factor. The technical analysis indicates a bullish trend, further enhancing the stock's attractiveness. The recent merger adds strategic value, while the valuation metrics suggest the stock is undervalued with an attractive dividend yield.

Positive Factors

Revenue Growth

The significant revenue growth rate indicates a strong market demand for the company's services, enhancing its competitive position and supporting long-term business expansion.

Cash Flow Generation

Robust cash flow growth demonstrates efficient operations and financial health, enabling the company to invest in growth opportunities and maintain financial stability.

Strategic Merger

The merger expands market reach and operational capabilities, aligning with strategic goals and potentially increasing customer base and shareholder value.

Negative Factors

Potential Margin Anomalies

Unusual margin figures could signal non-recurring items, affecting the reliability of profitability metrics and potentially misleading long-term financial assessments.

Integration Challenges

Integration challenges could strain resources and distract management, potentially impacting operational efficiency and delaying expected merger benefits.

Moderate Leverage

Moderate leverage, while manageable, could limit financial flexibility and increase risk during economic downturns, affecting long-term financial stability.

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

Citizens & Northern demonstrates strong profitability and effective cost management, with stable margins and improved leverage. However, recent revenue decline and low cash conversion efficiency could pose challenges. The company maintains a solid capital structure, but historical high debt levels warrant caution.

Income Statement

Citizens & Northern shows strong profitability with a consistent gross profit margin above 70% in recent periods. However, revenue has declined by 7.49% in the TTM, indicating potential challenges in revenue generation. The net profit margin remains healthy at 18.52%, and EBIT and EBITDA margins are stable, reflecting efficient cost management.

Balance Sheet

The company's debt-to-equity ratio has improved from 1.04 in 2022 to 0.64 in the TTM, indicating better leverage management. Return on equity is stable around 9.6%, showing consistent shareholder returns. The equity ratio suggests a solid capital structure, but the high debt levels in previous years pose a potential risk.

Cash Flow

Free cash flow has grown by 20.2% in the TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 1.36%, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is strong at 94.69%, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	159.48M	155.47M	136.24M	115.48M	108.95M	100.44M
Gross Profit	107.97M	104.31M	102.95M	98.70M	98.73M	86.93M
EBITDA	35.60M	34.05M	32.63M	34.74M	39.82M	25.19M
Net Income	27.14M	25.96M	24.15M	26.62M	30.55M	19.22M
Balance Sheet
Total Assets	2.66B	2.61B	2.52B	2.45B	2.33B	2.24B
Cash, Cash Equivalents and Short-Term Investments	333.21M	348.61M	472.63M	553.08M	622.63M	451.19M
Total Debt	174.25M	207.67M	211.76M	181.78M	77.56M	91.18M
Total Liabilities	2.37B	2.34B	2.25B	2.20B	2.03B	1.94B
Stockholders Equity	293.96M	275.28M	262.38M	249.32M	301.40M	299.76M
Cash Flow
Free Cash Flow	31.69M	31.13M	31.28M	31.31M	32.98M	21.65M
Operating Cash Flow	33.50M	33.03M	33.55M	34.60M	34.84M	24.78M
Investing Cash Flow	-55.75M	-20.94M	-53.20M	-234.69M	-103.89M	96.58M
Financing Cash Flow	-37.63M	58.70M	24.73M	151.94M	68.88M	-56.47M

Citizens & Northern Technical Analysis

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

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 19.66 is below the 20-day moving average (MA) of 20.56, below the 50-day MA of 19.73, and above the 200-day MA of 19.11, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 75.49 is Negative, neither overbought nor oversold. The STOCH value of 89.25 is Negative, 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
CBAN	80 Outperform	$391.66M	11.56	9.63%	2.50%	6.92%	26.93%
FNLC	78 Outperform	$317.17M	10.05	11.86%	5.16%	10.46%	18.70%
CZNC	77 Outperform	$391.29M	12.57	9.42%	5.10%	5.76%	21.85%
PCB	77 Outperform	$341.69M	9.99	9.38%	3.34%	10.93%	42.68%
PLBC	76 Outperform	$319.26M	10.74	12.34%	2.60%	11.98%	-10.12%
FSBW	75 Outperform	$329.91M	10.71	10.77%	3.06%	4.43%	-12.94%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Citizens & Northern Corporate Events

Citizens & Northern Completes Merger with Susquehanna

On October 1, 2025, Citizens & Northern Corporation completed its merger with Susquehanna Community Financial, Inc., resulting in the integration of Susquehanna Community Bank into Citizens & Northern Bank. This strategic move aims to enhance C&N’s market presence in Central Pennsylvania, aligning with its community-focused values and expanding its shareholder and customer base. Key executives from Susquehanna have joined C&N, indicating a smooth transition and potential for strengthened operations.

Citizens & Northern Receives Approvals for Susquehanna Merger

On September 22, 2025, Citizens & Northern Corporation announced it received all necessary regulatory and shareholder approvals to proceed with the merger of Susquehanna Community Financial, Inc. into C&N. The merger, initially announced on April 23, 2025, is expected to close on October 1, 2025, pending customary closing conditions. This merger is anticipated to enhance C&N’s market presence and operational capabilities, although it may present challenges such as integration efforts and the need to attract key personnel in Susquehanna’s market area.