WELLSBORO — Citizens & Northern Corp. announced its most recent dividend declaration and its unaudited, consolidated financial results for the three-month and six-month periods ended June 30.
On July 16, C&N’s Board of Directors declared a regular quarterly cash dividend of $0.27 per share. The dividend is payable on Aug. 7 to shareholders of record as of July 27.
C&N’s acquisition of Covenant Financial Inc. was completed July 1. Covenant was the parent company of Covenant Bank, a commercial bank which operated a community bank office in Bucks County, Pennsylvania and another in Chester County, Pennsylvania. Pursuant to the transaction, Covenant merged with and into C&N and Covenant Bank merged with and into C&N’s bank subsidiary, Citizens & Northern Bank. Based on the average of the high and low C&N stock trading prices of $20.32 per share on July 1, 2020, the total transaction value was approximately $63.3 million, including approximately 75% of the consideration paid in C&N common stock and 25% paid in cash. Holders of Covenant common stock prior to the consummation of the merger held approximately 12.9% of C&N’s common stock outstanding immediately following the merger. With the addition of Covenant, C&N is projected to have assets of approximately $2.3 billion.
The acquisition of Covenant follows the acquisition of Monument Bancorp, Inc. (“Monument”) on April 1, 2019. Monument was the parent company of Monument Bank, with two community banking offices and a lending office in Bucks County, Pennsylvania. Monument merged with and into C&N and Monument Bank merged with and into Citizens & Northern Bank. The total transaction value of the Monument acquisition was $42.7 million.
Net income was $0.39 per diluted share in the second quarter 2020, up from $0.30 in the first quarter 2020 and $0.27 in the second quarter 2019. For the six months ended June 30, 2020, net income per diluted share was $0.70, up from $0.67 per share for the first six months of 2019.
Earnings for 2020 and 2019 have been impacted by merger-related expenses from the Covenant and Monument transactions. Excluding merger-related expenses and net realized gains on securities, adjusted (non-U.S. GAAP) earnings of $0.45 per share for the second quarter 2020 were slightly lower than the comparative $0.46 per share for the second quarter 2019, and adjusted (non-U.S. GAAP) earnings were $0.76 per share for the first six months of 2020 as compared to $0.89 per share for the first six months of 2019.