CITIZENS & NORTHERN CORP Segments Disclosure
22. SEGMENT REPORTING
The Corporation’s one reportable segment is determined by the President and Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided about the Corporation’s products and services offered, primarily community banking operations. The chief operating decision maker uses consolidated net income to assess performance by comparing to and monitoring against budget and prior year results. In addition, the chief operating decision maker uses the consolidated net income to benchmark the Corporation against its competitors. This information is used to manage resources to drive business and net earnings growth, including investment in key strategic priorities, as well as determine the Corporation's ability to return capital to shareholders. Loans, investments, deposits and assets held in a fiduciary or custodial capacity provide the revenues in the banking operation. Interest expense, provisions for credit losses, and payroll provide the significant expenses in the banking operation. All operations are domestic.
Accounting policies for segments are the same as those described in Note 1. Segment performance is evaluated using consolidated net income.
Year Months Ended | ||||||||||
(In Thousands) | | December 31, 2025 | | December 31, 2024 | | December 31, 2023 | ||||
Interest income | $ | 139,217 | $ | 128,078 | $ | 113,504 | ||||
Interest expense |
| 47,364 |
| 48,963 |
| 33,104 | ||||
Net interest income |
| 91,853 |
| 79,115 | 80,400 | |||||
Provision for credit losses |
| 6,073 |
| 2,195 | 186 | |||||
Net interest income after provision for credit losses |
| 85,780 |
| 76,920 | 80,214 | |||||
Other income: |
|
| ||||||||
Other noninterest income | 30,814 | 29,209 | 27,453 | |||||||
Realized gains (losses) on available-for-sale debt securities, net |
| 38 |
| 0 | (3,036) | |||||
Total other income |
| 30,852 |
| 29,209 | 24,417 | |||||
Other noninterest expense: |
|
| ||||||||
Salaries and employee benefits |
| 47,386 |
| 44,930 | 44,195 | |||||
Merger-related expenses |
| 7,940 |
| 0 | 0 | |||||
Other segment expenses (1) |
| 32,663 |
| 29,328 | 29,953 | |||||
Total noninterest expense | 87,989 | 74,258 | 74,148 | |||||||
Income before income tax provision | 28,643 | 31,871 | 30,483 | |||||||
Income tax provision |
| 5,216 |
| 5,913 | 6,335 | |||||
NET INCOME | $ | 23,427 | $ | 25,958 | $ | 24,148 | ||||
| (1) | Other segment expenses included expenses for professional fees, data processing and telecommunication, net occupancy and equipment, automated teller machine and interchange, Pennsylvania shares tax and other noninterest expenses. |
The Corporation’s segment assets represent the total assets as presented on the Consolidated Balance Sheets at December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.