Financial Performance - Q1 2022 net income was $6,895,000, or $0.44 per diluted share, down from $8,787,000, or $0.55 per diluted share in Q1 2021, representing a decrease of 21.5%[130] - Noninterest income decreased by $959,000 in Q1 2022, with notable declines in tax credit income and net gains from sales of loans, partially offset by increases in service charges and trust revenue[134][136] - Noninterest expense increased by $1,177,000 in Q1 2022, driven by higher salaries and employee benefits, which rose by $1,712,000 due to merit-based increases and expansion efforts[136] - The income tax provision for Q1 2022 was $1,483,000, or 17.7% of pre-tax income, down from $2,110,000, or 19.4% of pre-tax income in Q1 2021[141] - Total noninterest expense rose to $16,886,000, an increase of $1,177,000, or 7.5%, from the first quarter of 2021[172] Interest Income and Expense - Net interest income for Q1 2022 was $20,332,000, an increase of $249,000 (1.2%) compared to Q1 2021, with a net interest margin of 3.86%, down from 4.00% in Q1 2021[130][148] - Interest income totaled $22,075,000 in 2022, an increase of $48,000 from 2021[150] - Interest expense decreased by $230,000 to $1,441,000 in 2022 from $1,671,000 in 2021[157] - The average yield on earning assets decreased to 4.13% in Q1 2022, down 0.20% from Q1 2021, while the average rate on interest-bearing liabilities was 0.40%, a decrease of 0.07%[148] - Net interest income increased by $278,000 to $20,634,000 in 2022 from $20,356,000 in 2021[165] Loans and Deposits - Average total deposits increased by $100.6 million (5.5%) in Q1 2022, while average outstanding loans decreased by $86.7 million, including a reduction in average PPP loans of $119.7 million[130] - Average outstanding loans receivable decreased by $86,725,000 (5.3%) to $1,547,861,000 in 2022 from $1,634,586,000 in 2021[152] - Total loans receivable stood at $1,538,190,000, a slight decrease from $1,564,849,000 in the previous year[215] - Total commercial loans amounted to $960,143,000 as of March 31, 2022, compared to $978,371,000 in the previous year[195] - The total outstanding balance of loans repurchased due to noncompliance was $1,557,000 as of March 31, 2022, slightly down from $1,571,000 at December 31, 2021[190] Loan Loss Provisions - The provision for loan losses was $891,000 in Q1 2022, significantly higher than $259,000 in Q1 2021, reflecting an increase in the collectively determined portion of the allowance[131][141] - The allowance for loan losses increased to $14,271,000 at March 31, 2022, from $13,537,000 at the end of the previous year[213] - Total provision for loan losses increased to $891,000 for the three months ended March 31, 2022, compared to $259,000 for the same period in 2021[212] - The allowance for loan losses as a percentage of total loans was 0.93% as of March 31, 2022, compared to 0.87% in the previous year, reflecting an increase in the reserve[215] - The provision for loan losses for the commercial segment was $779,000 for the three months ended March 31, 2022, compared to $242,000 for the same period in 2021[201] Capital and Liquidity - As of March 31, 2022, C&N Bank's total capital to risk-weighted assets ratio was 16.26%, exceeding the minimum requirement of 8%[227] - The Corporation's Tier 1 capital to risk-weighted assets ratio was 15.29% as of March 31, 2022, above the minimum requirement of 6%[227] - The common equity tier 1 capital to risk-weighted assets ratio for C&N Bank was 15.29% at March 31, 2022, surpassing the minimum requirement of 4.5%[227] - The Corporation's liquidity position is considered adequate to meet both short-term and long-term funding obligations[222] - The Corporation's cash position was bolstered by growth in deposits and loan repayments, outpacing loan originations and other cash uses[217] Market Conditions and Economic Indicators - The annual inflation rate for the 12-month period ended March 31, 2022, was 8.5%, the highest increase since 1981[232] - The Federal Reserve raised the fed funds target rate to 0.50% in March 2022, indicating ongoing increases are anticipated[234] - The market yield on 5-Year U.S. Treasury Obligations was 2.42% as of March 31, 2022, compared to 1.26% at December 31, 2021, indicating a significant increase in interest rates[181] - The Corporation's accumulated other comprehensive loss related to available-for-sale debt securities was $20,492,000 as of March 31, 2022, compared to a gain of $4,809,000 at December 31, 2021[231] - The minimum total capital ratio requirement is 8%, with a conservation buffer requirement of 10.5%[230] Stock and Shareholder Returns - The Corporation repurchased 129,867 shares of common stock for a total cost of $3,227,000 in Q1 2022, with a cumulative repurchase of 428,926 shares costing $10,639,000[227] - Future dividend payments and stock repurchases will depend on maintaining a strong financial condition and regulatory requirements[228]

Mortgage Portfolio - The Corporation's total outstanding balance of residential mortgages sold and serviced through the MPF Xtra and MPF Original programs amounted to $334,741,000 as of December 31, 2021[51]. - The Corporation has repurchased residential mortgage loans totaling $1,571,000 due to identified instances of noncompliance with program guidelines as of December 31, 2021[51]. Risk Factors - The Corporation's loan portfolio is primarily secured, but there is a risk that collateral values may be insufficient to cover obligations due to economic changes[30]. - The Corporation's assets are predominantly long-term, fixed-rate loans, exposing it to interest rate risk that could adversely affect future earnings[31]. - The Corporation's operations are concentrated in specific geographic regions, making it vulnerable to local economic conditions that could impact loan quality[32]. - The Corporation faces intense competition from larger financial institutions, which may affect its ability to compete effectively in the market[33]. - The Corporation's financial condition could be adversely affected by regulatory changes and compliance with extensive banking regulations[40]. Human Resources - The Corporation's ability to attract and retain qualified personnel is critical for future success, but competition for talent is intense[34]. Liquidity and Funding - The Corporation maintains a line of credit with the Federal Home Loan Bank of Pittsburgh, which is critical for funding needs, but access may be restricted under certain conditions[42]. - The Corporation's liquidity position is strong, but disruptions in financial markets could negatively impact available sources of liquidity[47].

Table of Contents PENNSYLVANIA 23-2451943 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common Stock Par Value $1.00 CZNC NASDAQ Capital Market CITIZENS&NOR® UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September ...

Table of Contents PENNSYLVANIA 23-2451943 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common Stock Par Value $1.00 CZNC NASDAQ Capital Market CITIZENS&NOR® UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, ...

Financial Performance - Net income for the first quarter of 2021 was $8,787,000, representing an increase of 83.3% compared to $4,166,000 in the first quarter of 2020[155]. - Earnings per diluted share for the first quarter of 2021 were $0.55, up 27.9% from $0.43 in the fourth quarter of 2020 and 77.4% higher than $0.31 in the first quarter of 2020[155]. - Net interest income for Q1 2021 was $20,083,000, an increase of $5,801,000 compared to Q1 2020, driven by growth from the Covenant acquisition[164]. - Noninterest income for Q1 2021 increased by $1,501,000 compared to Q1 2020, with net gains from sales of loans rising by $749,000[166]. - The income tax provision for Q1 2021 was $2,110,000, up from $816,000 in Q1 2020, reflecting higher pre-tax income[174]. - Fully taxable equivalent net interest income increased by $5,850,000 (40.3%) to $20,356,000 in 2021 compared to 2020[187]. - Total interest income increased by $4,766,000, a rise of 28.4% compared to the previous year[207]. Capital Ratios and Financial Health - C&N Bank's leverage ratio at March 31, 2021, was 10.66%, significantly above the well-capitalized threshold of 5%, with an excess capital amount of $122.3 million[153]. - The total capital to risk-weighted assets ratio at March 31, 2021, was 16.51%, exceeding the well-capitalized threshold of 10%, with an excess capital amount of $95.6 million[153]. - The Corporation's capital ratios demonstrate the capacity to absorb significant losses while continuing to meet well-capitalized requirements[152]. - The Corporation's capital ratios as of March 31, 2021, exceeded the Board policy threshold levels, indicating strong capital adequacy[262]. - The consolidated total capital to risk-weighted assets ratio was 18.03%, while C&N Bank's ratio was 16.51%[263]. - The Tier 1 capital to risk-weighted assets ratio for the consolidated entity was 16.08%, and for C&N Bank, it was 15.68%[263]. - C&N Bank's capital conservation buffer was 8.51% as of March 31, 2021, exceeding the minimum requirement of 2.5%[266]. Loan and Asset Management - Average outstanding loans increased by $466.1 million, and average total deposits rose by $570.9 million in Q1 2021[164]. - Total loans receivable rose to $1,634,586,000, up from $1,168,485,000, marking an increase of 39.8%[205]. - Total commercial loans amounted to $997,437,000 as of March 31, 2021, a decrease of 1.3% from $1,007,751,000 in 2020[226]. - Residential mortgage loans totaled $601,253,000, down from $620,172,000 in 2020, reflecting a decline of 8.8%[226]. - Total loans, net of allowance for loan losses, were $1,602,926,000 as of March 31, 2021, compared to $1,632,824,000 in 2020[226]. - Total assets increased to $2,242,686,000 from $1,637,165,000, representing a growth of 37% year-over-year[205]. Loan Loss Provisions and Credit Quality - Provision for loan losses decreased to $259,000 in Q1 2021 from $1,528,000 in Q1 2020[165]. - The total provision for loan losses across all segments was $259,000 for the three months ended March 31, 2021, significantly lower than $1,528,000 for the same period in 2020[248]. - The allowance for loan losses was $2,305,000 as of March 31, 2021, an increase from $2,154,000 at December 31, 2020[213]. - Total nonperforming loans as a percentage of outstanding loans was 1.45% at March 31, 2021, up from 1.42% at December 31, 2020[241]. - Total impaired loans increased to $18,158,000 at March 31, 2021, up $340,000 from $17,818,000 at December 31, 2020[242]. - The allowance for loan losses represented 0.72% of gross loans outstanding at March 31, 2021, up from 0.69% at December 31, 2020[233]. Paycheck Protection Program (PPP) and COVID-19 Impact - The recorded investment in Paycheck Protection Program (PPP) loans as of March 31, 2021, was $137.8 million, which included a first draw amount of $71.7 million and a second draw amount of $66.1 million[151]. - The first draw PPP loans decreased by $60.6 million from $132.3 million at December 31, 2020, due to loans forgiven and repaid by the SBA[151]. - Most loan modifications under the COVID-19 program provided a deferral of interest or principal for 90 to 180 days, with many loans returning to full payment status prior to March 31, 2021[148]. Management and Strategic Initiatives - The Corporation's Pandemic Committee has been active in providing communication and support to employees and clients since March 2020, adapting to health and safety mandates[142]. - Management believes the Corporation is well-positioned to meet its short-term and long-term funding obligations[258]. - Management continues to monitor commercial loan relationships for possible credit losses and will adjust estimates of loss as necessary[245].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------|------------------------------------------------------------------|------------------------------------------------------------ ...

Table of Contents Common Stock Par Value $1.00 CZNC NASDAQ Capital Market CITIZENS&NOF UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _________________________. Commission file numbe ...

Table of Contents PENNSYLVANIA 23-2451943 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) IZENS & NORTHERN CORPORATIO UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _________________________. Commission file number: 000-16084 CITIZENS & NORTHERN CORPORATION (Exact name of Registrant as specified in its ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of Each Class Trading Symbol Name of Each Exchange on Which Registered Common Stock Par Value $1.00 CZNC NASDAQ Capital Market FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ___________ ...