Citizens & Northern(CZNC) - 2021 Q4 - Annual Report

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].