PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2022

PARENT COMPANY ONLY

PARENT COMPANY ONLY

19. PARENT COMPANY ONLY

The following is condensed financial information for Citizens & Northern Corporation:

CONDENSED BALANCE SHEET	Dec. 31,		Dec. 31,
(In Thousands)	2022		2021
ASSETS
Cash	$	17,867	$	33,518
Investment in subsidiaries:
Citizens & Northern Bank		254,809		298,797
Citizens & Northern Investment Corporation		12,453		13,085
Bucktail Life Insurance Company		3,637		3,825
Other assets		33		33
TOTAL ASSETS	$	288,799	$	349,258
LIABILITIES AND STOCKHOLDERS' EQUITY
Senior notes, net	$	14,765	$	14,701
Subordinated debt, net		24,607		33,009
Other liabilities		102		143
Stockholders' equity		249,325		301,405
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	288,799	$	349,258

CONDENSED INCOME STATEMENT
(In Thousands)	2022		2021		2020
Dividends from Citizens & Northern Bank	$	19,483	$	20,200	$	38,507
Expenses		(1,695)		(1,691)		(1,488)
Income before equity in undistributed income (excess distributions) of subsidiaries		17,788		18,509		37,019
Equity in undistributed income (excess distributions) of subsidiaries		8,830		12,045		(17,797)
NET INCOME	$	26,618	$	30,554	$	19,222

CONDENSED STATEMENT OF CASH FLOWS
(In Thousands)	2022		2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	26,618	$	30,554	$	19,222
Adjustments to reconcile net income to net cash provided by operating activities:
Accretion of purchase accounting adjustment		(14)		(43)		(38)
Amortization of debt issuance costs		170		101		0
Equity in (undistributed income) excess distributions of subsidiaries		(8,830)		(12,045)		17,797
(Increase) decrease in other assets		0		(29)		105
(Decrease) increase in other liabilities		(41)		(16)		13
Net Cash Provided by Operating Activities		17,903		18,522		37,099
CASH FLOWS FROM INVESTING ACTIVITIES,
Net cash used in business combination		0		0		(21,837)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of senior notes and subordinated debt		0		39,100		0
Repayment of subordinated debt		(8,500)		(8,000)		0
Proceeds from sale of treasury stock		160		212		131
Purchase of treasury stock		(9,349)		(7,586)		(163)
Dividends paid		(15,865)		(15,976)		(14,469)
Net Cash (Used in) Provided by Financing Activities		(33,554)		7,750		(14,501)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(15,651)		26,272		761
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		33,518		7,246		6,485
CASH AND CASH EQUIVALENTS, END OF YEAR	$	17,867	$	33,518	$	7,246
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Investment of net assets acquired in business combination in Citizens & Northern Bank	$	0	$	0	$	73,426
Common equity issued in business combination	$	0	$	0	$	41,429
Subordinated debt assumed in business combination	$	0	$	0	$	10,091
Other liabilities assumed in business combination	$	0	$	0	$	69
Interest paid	$	1,433	$	1,567	$	655