EX-99.1 16 cznc-20211231xex99d1.htm EX-99.1

Exhibit 99.1

| Inspire Innovate BUILDING THE CUSTOMER EXPERIENCE 2021 ANNUAL REPORT

| TABLE OF CONTENTS President&CEO – Shareholder Letter 4 Lead&Guide – C&N Leadership 8 Dollars&Sense – C&N Financial Profile 10 Quarterly Share Data Operations Comparisons End of Period Balances Consolidated Financial Data C&N Wealth Management Awards&Recognition 16 Honor&Remember 21 Community&Commitment 22

| President CEO Dear Shareholder, We’ve learned from great storytellers throughout history that good stories have relatable characters who face adversity and, throughout their journey, they adapt and evolve into a better version of themselves. As we take a look back on 2021, C&N has a great story to tell. C&N delivered a record net income for 2021 of $30.6 million. These results were supported by our relationship-based business model, recent acquisitions, and footprint expansion, as well as the government’s response to COVID-19 and subsequent economic rebound. Lending activity in all segments was solid, PPP forgiveness advanced, the wealth management business continued to grow and the improved base of core deposits was sustained. C&N’s excellent risk profile also carried on as credit metrics improved and liquidity and capital levels remained outstanding. As the year concluded, adversity and volatility remained in the world around us with continued debate and reaction to the pandemic and its impact on the economy, public policy, and our culture. While real GDP increased by 6% in 2021, fueled by robust consumer spending, persistent supply chain, workforce, and inflation pressures are still affecting many individuals and businesses. Cumulatively, these pressures have driven an increase in intermediate and long-term interest rates and more certainty that the Fed will act to raise short-term rates early in 2022. Progress regarding COVID-19 that was evident early in the fourth quarter slipped a bit with the rapid spread of the Omicron variant beginning in December, creating renewed uncertainty about the course of the pandemic and public policy reaction. While respecting these external factors and their ongoing impact, the C&N team did not allow them to become a distraction from our mission. Quite to the contrary, our teams have been fully engaged to support, counsel, and deliver solutions to our customers and communities. This consistency has positioned C&N as a dependable partner, resource, and trusted advisor for all that we serve and underpins the persistency of our earnings and overall financial strength that create long-term value. We know that the pace of change in customer preferences and behaviors has accelerated since the onset of the pandemic. Adoption of digital offerings, like mobile banking, cashless payment systems, and video banking, “ Every success story is a tale of constant adaption, revision and change. - Richard Branson, British Entrepreneur and business magnate. “ 4

| advanced at a faster rate than ever before, while the role of brick-and-mortar branches evolves to be more consultative. We also know that innovation is key to keeping pace with customer expectations. C&N’s history as an early adopter of new digital solutions and sustainable platforms has allowed for quick reaction to shutdowns and support of remote workers while continuing to provide high-quality service for our customers. With a focus on our branches & roots, our technology & data, and our teams & culture, we also innovate by inspiring change in each other. Throughout our journey, the team has demonstrated its willingness and ability to adapt and evolve as we continue on our quest to create an excellent, omni-channel experience for our customers. Branches&Roots It is predicted that, as this virus fades and life moves on to the “next” normal, digital will reign for routine transactions. But when it comes to important life decisions, customers will want face-to- face, personal interaction, consultation, and advice they can trust. Starting out on your own, buying a home, establishing a wealth plan, or managing generational wealth transfers, will be the primary conversations that occur inside C&N branches, replacing the transactional, commoditized activities of making deposits, transfers, and withdrawals. With fewer rows of tellers, branches will feel more like service centers. These shifts can be seen in the recent remodels and updates that have taken place in several of our offices. There is a stronger focus on creating an environment conducive to engaging in deeper discussions between the client and the C&N expert. With the expansion of the C&N footprint into Southcentral and Southeastern Pennsylvania, our local teams remain pillars of their communities, facilitated by our regional leadership model. This is important to the C&N culture, as we recognize that we all stand to benefit from a better future if our communities are thriving and strong. From the very beginning, C&N has been rooted in our commitment to local businesses and families by providing needed funding for growth and contributing to local charities which share C&N’s mission to enhance the lives of our neighbors. All regional teams are empowered to strengthen their communities one relationship at a time. The team didn’t break stride in 2021 to build on the momentum of our Giving Back, Giving Together (GBGT) community fundraising campaign. In May, we closed out our annual cause in support of Fighting Hunger with donations totaling $129,129 – that’s enough to provide 775,000 meals to local families. In June, we announced our new annual cause, Children in Need, and the team has already collected $59,000 as of the end of January. That money will go to 22 organizations throughout our footprint to benefit underprivileged youth in need of basic necessities, like food, clothing, and shelter. Our 5

| team’s persistence and dedication to GBGT throughout this year has reflected a deep commitment to making a difference for their neighbors in need. Technology&Data The transition to digital platforms for routine transactions like checking balances, depositing checks, or transferring money was inevitable and the technology to handle these services has long been in place. The focus has now moved to upgrades and enhancements to these platforms, making them more integrated and leveraging data and insights to deliver a more personalized, relevant, and easier experience for each individual. By removing friction points and improving the compatibility of systems across our delivery channels, we are creating an improved experience and delivering even more value for the customer. Behind the scenes, innovation is focused on applying technology to streamline operational processes and improve internal productivity. Replacing manual processes with automated or digital workflows and enhancing systems integration removes friction, enables our teams to utilize their skills more effectively, and enhances the employee experience at C&N. This transformational work became a priority in 2021 that will be sustained into 2022 and beyond. Teams&Culture Few things can test a team like the adversity presented by a global pandemic and the related ramifications. In 2021, the C&N team produced great results in this unique environment, adapting to the ongoing changes and challenging and inspiring each other to stay focused on our mission of “Creating Value Through Lifelong Relationships.” The most inspiring element of this past year was how the C&N team took care of each other as every individual and family dealt with serious, and sometimes tragic, issues. Their support for teammates and friends reflects our values and the culture we have collectively built. In addition, we created plenty of change of our own by realigning our structure to support our growth strategy and our relationship- based business model. All business lines were connected into a revenue group, led by Chief Revenue Officer Hal Hoose, to improve coordination of the overall relationship model and customer experience. We named Tom Rudy and Blair Rush as Region Presidents and Jeff Snyder as Region Executive, new positions introduced across the franchise, establishing local leadership to deliver 6

| the C&N experience in every community we serve. Concurrently, the Digital & Payments Division was introduced, led by Shelley D’Haene, Chief Digital Channels and Payments Officer. This team will drive digital, mobile, and online capabilities, and the coordination of the Client Care Center and servicing/ operations teams to deliver a seamless customer experience. In June, we welcomed Alex Balagour as Chief Information Officer to lead C&N’s information technology and data journey into the future by identifying and implementing the most effective platforms, secure infrastructure, software applications, and information systems to support business needs. Another way the team at C&N has inspired change is by dedicating resources to create and execute a Diversity & Inclusion plan. By building a culture that recognizes how strong our organization can be when all of our customers, teammates, leaders, and shareholders feel welcomed, represented, and empowered, we can truly fulfill our mission as a promise of excellence in service to all people. We put the work for this important part of our organization into the hands of our best assets - our people. Our D&I Team is made up of volunteers from across our organization who are passionate about Diversity & Inclusion and are motivated to be a positive influence on our culture. This team was tasked with creating a D&I Plan that would bring about necessary changes as well as highlight steps that C&N has already taken towards a more diverse and inclusive culture. Implementation is underway and progress is regularly communicated to our leadership team and our employees. Turning the page to next year, we look forward to transitioning out of the pandemic and building on 2021’s success story. We have a number of initiatives planned that will extend our capacity to Inspire & Innovate as the C&N team drives to grow and create value in a dynamic, competitive, and ever-changing market. We will simplify and reduce points of friction in the customer experience and create efficiencies throughout our network. All of these efforts better position our team to build and deepen relationships with our customers, communities, and shareholders. And in doing so – and doing it well – we will have more good stories yet to tell... As always, we thank you for your continued confidence and support. J. Bradley Scovill President & CEO 7

| We are grateful to our Board & Advisory Board members for lending their expertise to further the mission of C&N and for providing us with valuable insight into the communities we serve. Bradford & Sullivan Counties Evan R. Barnes Casandra K. Blaney James A. Bowen Krystle R. Bristol Laura C. Cimino Warren J. Croft John M. Estep Zachary R. Gates Taunya Knolles Rosenbloom J. Wesley Kocsis Dr. Stephen D. Laudermilch Kimberly J. Mastrantonio Jeffrey B. Paul Damian M. Rossettie William B. Saxe Mark W. Smith Andrew R. Wilcox Cameron, McKean & Potter Counties John A. Abplanalp David Mark Errick Joseph R. Kightlinger Lori J. Reed Andrea F. Streich Edwin W. Tompkins, III Lycoming County Robert T. Beiter Thomas F. Charles John M. Confer Roger D. Jarrett Daniel Paul Marrazzo Daniel K. Mathers Jeffrey M. Patterson John F. Perrotto Tyler L. Rhone Camela A. Rooney David A. Schall Melissa M. Young York County Thomas K. Baughman Matthew R. Doran Nicholas E. Hauck Ryan A. Myers Alex E. Snyder Bucks & Chester Counties Carolina Cabrera DiGorgio Glenda R. Childs Joseph A. Fluehr IV Thomas Hebel Linda J. Kilroy Karen J. Miller Louis Quattrocchi Gary B. Rubin Michael J. Rush Irving N. Stein David E. Thompson James Watts Tioga County Brian A. Bicksler Lawrence J. Connolly Matthew S. DeCamp Craig Eccher Brandon E. Hackett Mark R. Howe John S. Johnston John C. Kenyon Danielle M. Lee Scott E. Lewis David C. Murdock Mary C. Owlett William W. Roosa Eric Schoonover Ray E. Wheeland ADVISORY BOARD Lead Guide Alex Balagour EVP and Chief Information Officer Shelley L. D’Haene EVP and Chief Digital Channels & Payments Officer Stan R. Dunsmore EVP and Chief Credit Officer Hal F. Hoose, III EVP and Chief Revenue Officer Mark A. Hughes EVP and Chief Financial Officer John M. Reber EVP and Chief Risk Management Officer Thomas L. Rudy, Jr. EVP and Chief Delivery Officer Blair T. Rush EVP and Regional President J. Bradley Scovill President & CEO Tracy E. Watkins EVP and Chief Human Resource Officer EXECUTIVE TEAM 8

| Terry L. Lehman, CPA Chairman, Retired Certified Public Accountant Stephen M. Dorwart, CPA Fischer Dorwart, P.C. Clark S. Frame Retired Chairman of the Board, Monument Bank Susan E. Hartley Attorney at Law Bobbi J. Kilmer Retired President & CEO, Claverack Rural Electric Leo F. Lambert President/GM Fitzpatrick & Lambert, Inc. Robert G. Loughery President, Nehemiah Development Company Frank G. Pellegrino Owner & Developer, Carlton Associates, LLC Helen S. Santiago , CPA , LaBarr and LaBarr Timothy E. Schoener VP & CIO, UPMC Pinnacle J. Bradley Scovill President & CEO, C&N Katherine W. Shattuck Consultant, Senior Client Partner, Korn Ferry Aaron K. Singer President & CEO, Metalkraft Industries, Inc. BOARD OF DIRECTORS CORPORATE OFFICERS Mark A. Hughes , Treasurer Kimberly N. Battin , Corporate Secretary J. Bradley Scovill , President & CEO 9

| Trades of the Corporation’s stock are executed through various brokers who maintain a market in the Corporation’s stock. The Corporation’s stock is listed on NASDAQ Capital Market Securities with the trading symbol CZNC. The following tables show the approximate high and low sales price of the common stock during 2021 and 2020. 2021 QUARTERLY SHARE PRICE DATA $30.00 $22.50 $15.00 $7.50 $0.00 First Quarter Third Quarter Fourth Quarter Second Quarter High Low Dollars Sense 2021 High Low Dividend Declared per Quarter 2020 High Low Dividend Declared per Quarter First quarter $24.99 $18.98 $0.27 First quarter $29.06 $15.69 $0.27 Second quarter 25.69 23.00 0.28 Second quarter 22.89 16.20 0.27 Third quarter 25.97 23.73 0.28 Third quarter 20.76 14.92 0.27 Fourth quarter 27.99 24.52 0.28 Fourth quarter 20.84 16.05 0.27 10

| FIVE-YEAR SUMMARY Operations Comparison INCOME STATEMENT (In Thousands) 2021 2020 2019 2018 2017 Interest and dividend income $84,501 $77,160 $64,771 $50,328 $45,863 Interest expense 6,562 9,595 10,283 4,625 3,915 Net interest income 77,939 67,565 54,488 45,703 41,948 Provision for loan losses 3,661 3,913 849 584 801 Net interest income after provision for loan losses 74,278 63,652 53,639 45,119 41,147 Noninterest income excluding securities gains 25,857 24,344 19,284 18,597 16,153 Net gains on available-for-sale debt securities 24 169 23 2,033 257 Loss on prepayment of borrowings 0 1,636 0 0 0 Merger-related expenses 0 7,708 4,099 328 0 Noninterest expense excluding loss on prepayment of borrowings and merger-related expenses 62,472 55,609 45,438 39,158 36,967 Income before income tax provision 37,687 23,212 23,409 26,263 20,590 Income tax provision 7,133 3,990 3,905 4,250 7,156 Net income $30,554 $19,222 $19,504 $22,013 $13,434 Net income attributable to common shares $30,313 $19,106 $19,404 $21,903 $13,365 PER COMMON SHARE DATA 2021 2020 2019 2018 2017 Basic earnings per share $1.92 $1.30 $1.46 $1.79 $1.10 Diluted earnings per share $1.92 $1.30 $1.46 $1.79 $1.10 Cash dividends declared per share $1.11 $1.08 $1.18 $1.08 $1.04 Book value per common share at period-end $19.13 $18.84 $17.82 $16.02 $15.43 Tangible book value per common share at period-end $15.58 $15.30 $15.66 $15.05 $14.45 Weighted average common shares outstanding - basic 15,765,639 14,743,386 13,298,736 12,219,209 12,115,840 Weighted average common shares outstanding - diluted 15,771,955 14,747,048 13,321,559 12,257,368 12,155,136 DILUTED EARNINGS PER SHARE (In Thousands) $2.10 $1.75 $1.40 $1.05 $0.70 $0.35 $0.00 2021 2020 2019 2018 2017 CASH DIVIDENDS DECLARED PER SHARE $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 2021 2020 2019 2018 2017 11

| FIVE-YEAR SUMMARY End of Period Balances 2021 2020 2018 2018 2017 $1,700,000 $1,500,000 $1,300,000 $1,100,000 $900,000 $700,000 $500,000 GROSS LOANS (In Thousands) 2021 2020 2019 2018 2017 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 $0 TOTAL ASSETS (In Thousands) END OF PERIOD BALANCES (In Thousands) 2021 2020 2019 2018 2017 Available-for-sale debt securities $517,679 $349,332 $346,723 $363,273 $355,937 Gross loans 1,564,849 1,644,209 1,182,222 827,563 815,713 Allowance for loan losses 13,537 11,385 9,836 9,309 8,856 Total assets 2,327,648 2,239,100 1,654,145 1,290,893 1,276,959 Deposits 1,925,060 1,820,469 1,252,660 1,033,772 1,008,449 Borrowings, senior notes and subordinated debt 77,555 91,183 144,847 48,768 70,955 Stockholders' equity 301,405 299,756 244,452 197,368 188,443 Common shares outstanding 15,759,090 15,911,984 13,716,445 12,319,330 12,214,525 AVERAGE BALANCES (In Thousands) 2021 2020 2019 2018 2017 Total assets 2,319,234 2,009,825 1,540,469 1,276,140 1,247,759 Earning assets 2,145,475 1,856,487 1,437,993 1,205,429 1,169,569 Gross loans 1,596,756 1,445,098 1,057,559 822,346 780,640 Deposits 1,905,400 1,586,409 1,213,687 1,027,831 990,917 Stockholders' equity 301,226 273,351 229,446 187,895 188,958 12

| (1) Rates of return on tax-exempt securities and loans are calculated on a fully-taxable equivalent basis. (2) The efficiency ratio is calculated by dividing: (a) total noninterest expense excluding merger-related expenses and losses from prepayment of debt, by (b) the sum of net interest income (including income from tax-exempt securities and loans on a fully-taxable equivalent basis) and noninterest income excluding securities gains or losses. KEY RATIOS 2021 2020 2019 2018 2017 Return on average assets 1.32% 0.96% 1.27% 1.72% 1.08% Return on average equity 10.14% 7.03% 8.50% 11.72% 7.11% Average equity to average assets 12.99% 13.60% 14.89% 14.72% 15.14% Net interest margin (1) 3.69% 3.69% 3.86% 3.90% 3.82% Efficiency (2) 59.54% 59.87% 60.73% 59.69% 60.74% Cash dividends as a % of diluted earnings per share 57.81% 83.08% 80.82% 60.34% 94.55% Tier 1 leverage 10.53% 10.34% 13.10% 14.78% 14.23% Tier 1 risk-based capital 15.22% 15.58% 19.19% 23.24% 21.95% Total risk-based capital 18.21% 17.49% 20.70% 24.42% 23.07% Tangible common equity/tangible assets 10.81% 11.15% 13.22% 14.50% 13.95% Nonperforming assets/total assets 0.94% 1.10% 0.80% 1.37% 1.47% Nonperforming loans/total loans 1.36% 1.42% 0.88% 1.94% 2.10% Allowance for loan losses/total loans 0.87% 0.69% 0.83% 1.12% 1.09% Credit adjustment on purchased non-impaired loans and allowance for loan losses as a % of total loans and the credit adjustment 1.08% 1.05% 0.93% 1.12% 1.09% Net charge-offs/average loans 0.09% 0.16% 0.03% 0.02% 0.05% FIVE-YEAR SUMMARY End of Period Balances $2,100,000 $1,800,000 $1,500,000 $1,200,000 $900,000 $600,000 0 2021 2020 2019 2018 2017 DEPOSITS (In Thousands) $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $0 2021 2020 2019 2018 2017 STOCKHOLDERS’ EQUITY (In Thousands) 13

| 2021 (In Thousands Except Per Share Data) (Unaudited) 1 st quarter Mar. 31 2 nd quarter June 30 3 rd quarter Sept. 30 4 th quarter Dec. 31 Interest income $21,754 $20,428 $21,073 $21,246 Interest expense 1,671 1,747 1,614 1,530 Net interest income 20,083 18,681 19,459 19,716 Provision for loan losses 259 744 1,530 1,128 Net interest income after provision for loan losses 19,824 17,937 17,929 18,588 Noninterest income 6,782 6,300 6,359 6,416 Net gains (losses) on available-for-sale debt securities 0 2 23 (1) Other expenses 15,709 15,399 15,346 16,018 Income before income tax provision 10,897 8,840 8,965 8,985 Income tax provision 2,110 1,780 1,566 1,677 Net income $8,787 $7,060 $7,399 $7,308 Net income attributable to common shares $8,722 $6,999 $7,336 $7,256 Net income per share – basic $0.55 $0.44 $0.47 $0.46 Net income per share – diluted $0.55 $0.44 $0.47 $0.46 2020 (In Thousands Except Per Share Data) (Unaudited) 1 st quarter Mar. 31 2 nd quarter June 30 3 rd quarter Sept. 30 4 th quarter Dec. 31 Interest income $17,037 $16,513 $21,751 $21,859 Interest expense 2,755 2,267 2,469 2,104 Net interest income 14,282 14,246 19,282 19,755 Provision (credit) for loan losses 1,528 (176) 1,941 620 Net interest income after provision (credit) for loan losses 12,754 14,422 17,341 19,135 Noninterest income 5,281 5,528 6,970 6,565 Net gains on available-for-sale debt securities 0 0 25 144 Loss on prepyament of borrowings 0 0 0 1,636 Merger-related expenses 141 983 6,402 182 Other expenses 12,912 12,274 14,648 15,775 Income before income tax provision 4,982 6,693 3,286 8,251 Income tax provision 816 1,255 438 1,481 Net income $4,166 $5,438 $2,848 $6,770 Net income attributable to common shares $4,146 $5,405 $2,830 $6,727 Net income per share – basic $0.30 $0.39 $0.18 $0.43 Net income per share – diluted $0.30 $0.39 $0.18 $0.43 QUARTERLY CONSOLIDATED FINANCIAL DATA The following table presents summarized financial data for 2021 & 2020 14

| TRUST REVENUE $9,000 $7,500 $6,000 $4,500 $3,000 $1,500 $0 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 TRUST ASSETS UNDER MANAGEMENT Some products are not FDIC insured or guaranteed, not a deposit or other obligation of the bank, not guaranteed by the bank and are subject to investment risk, including possible loss of the principal amount invested and are not insured by any other federal government agency. 2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 WEALTH MANAGEMENT (In Thousands) 2021 2020 2019 2018 2017 Trust Assets Under Management $1,232,919 $1,103,228 $1,007,113 $862,517 $916,580 Trust Revenue $7,234 $6,321 $6,106 $5,838 $5,399 INVESTMENTS (In Thousands) 2021 2020 2019 2018 2017 Mutual Funds $797,336 $697,010 $611,539 $506,201 $536,731 Stocks 250,765 223,543 207,847 172,695 194,099 Bonds 95,427 104,833 101,966 103,037 104,184 Savings and money market funds 75,140 63,069 71,936 68,129 69,659 Miscellaneous 8,145 7,873 7,346 6,798 6,069 Real Estate 6,012 6,797 6,349 5,517 5,681 Mortgages 94 103 130 140 157 Total $1,232,919 $1,103,228 $1,007,113 $862,517 $916,580 ACCOUNTS (In Thousands) 2021 2020 2019 2018 2017 Pension/profit sharing $498,714 $439,739 $402,062 $342,501 $374,499 Investment management 391,777 344,688 307,068 256,430 256,348 Trusts 227,821 209,273 196,660 176,428 185,300 Custody 104,562 99,273 89,241 79,786 93,598 Estates 6,193 6,927 9,175 4,941 4,397 Guardianships 3,852 3,328 2,907 2,431 2,438 Total $1,232,919 $1,103,228 $1,007,113 $862,517 $916,580 WEALTH MANAGEMENT DATA The following table presents summarized financial data for C&N’s Wealth Management. 15

| Awards Recognition 2021 RETIREES 10 C&N team members were recognized for their combined 161 years of service. C&N is proud and appreciative of their dedication to the organization. 35 Years of Service Christopher Bolt Lori Brown 30 Years of Service Kelly Fasse 25 Years of Service Robert Miller Jenelle Selleck 20 Years of Service George Greeley Kim Kemp Jill Logan Stacey Sickler Teri Snyder Charlene Strykowski 15 Years of Service John Abercrombie Kerry Bliler Kathleen Evert BillieJo Haas Kathryn Harsch Linda Ordway Jill Pino 10 Years of Service Cynthia Carll Thomas Carroll Margaret Cascerceri Dalelyn Colquhoun Benjamin Dale Hannah Thorpe Mark Long Samuel Lush Denise Manley Sonya Route Ryan Satalin Amber Schwab Jamie VanZile Rhonda Washburn Holly Wise 5 Years of Service Steven Avery Andee Bryan Earl Clevenstine Brian Collins Jeremy Gardner Caitlin Hilliard Robert Kile Joy Klun Travis Marzo Carol McPherson Brittany Mondock Anna Morgan-Schill Anne-Marie Muldoon-Bastian Susan Nisen Jay Over Edward Penner Justin Power Tracy Rooke Blair Rush Amy Springer Kimberly Warren Ashley White Holly Young Brittany Zagozewski Cynthia Zamroz SERVICE AWARD RECIPIENTS 58 C&N team members were recognized for their combined 650 years of service. C&N is proud and appreciative of their dedication to the organization. 35 Years of Service Linda Etzel Dushore 30 Years of Service Lynn Errico Wellsboro 20 Years of Service Denise Mattison Wellsboro 18 Years of Service Marla McIlvain Wellsboro 17 Years of Service Claudia Brown Tioga Brenda Mitchell South Williamsport 7 Years of Service Linda Bowen Sayre 6 Years of Service David Plummer Newtown Melody Rosenburg Newtown 5 Years of Service Roberta Herald Doylestown 16

| January Jill Pino February Christina Nolte Greg Adamson Billie Jo Haas March Amber Schwab Lauri Dale Lorri Stocum April Corinna Murphy Hannah Molyneux Rhonda Washburn Kelley Cwiklinski Kim Whiting Muhammad Abubaker Ellen Conboy Diane Egly Elizabeth Loman May Kathryn Wesneski Sarah Russell Lauri Dale Bob Burns Cindy Zamroz Robert Herald Brittany Zagozewski Bruce Smithgall Chrissy Nolte June Diane Egly Bob Burns Muhammad Abubaker Lauri Dale Sarah Russell July Joanna Moore Claudia Brown Charity Shaefer Lauri Dale Linda Etzel Ashley White August Melanie Kellogg Rhonda Washburn Linda Gordner Muhammad Abubaker Diane Egly Emily Davenport Lorri Stocum Ashley White Crystal Barrett Kathryn Wesneski Linda Ordway September Bruce Smithgall Lisa Milne October Alyssa Whitehead Lacey Kennedy November Alyssa Whitehead December Billie Jo Haas Amber Schwab Chrissy Nolte Greg Adamson Heather Lanahan Michael Kilgour RAINMAKERS Team members who referred over $100,000 in closed business to C&N Wealth Management. MILLION DOLLAR CLUB Lenders earned one star for each month where they closed $1,000,000 or more in loans. Mortgage Lenders Commercial Lenders Rachel Brill  Kevin Dougherty  Andee Bryan  Will Holmes  Patrick Davis  Thomas Howley  Linda Gordner  Peter Johnson  Kathi Heimbach  Robert Kile  Thomas Maclin  Michael Kilgour  Heather Malvica  Daniel Miller  Jill Pino  Shane Moser  Michelle Rae  Halle Niklaus  Ronald Seymour, Jr.  Janet Nitka  Stacey Sickler  Jay Power  Tyler Sones  Ryan Satalin  Kimberlea Whiting  Patrick Shandera  Commercial Lenders Kathleen Shepard  Greg Adamson  Stephen Sherman  Bob Burns  Bruce Smithgall  Earl Clevenstine  Amy VanBlarcom-Lackey  Courtney Cole  Michael Wetzel  Brian Collins  Cindy Zamroz  Edward Dixon  17

| GIVING BACK, GIVING TOGETHER Volunteer of the Year Lacey Kennedy is this year’s volunteer of the year. She volunteered at the Roseville CHOP POP-UP Pantry, where they served 190 families. Throughout the year, Lacey volunteered a total of 45.5 hours there. IMPACTful Awards Manager Nominated TOP PERFORMER AWARD Recipients of this award came from recommendations from supervisors for teammates who displayed excellence in hitting their goals and driving the mission of the bank. Melissa Wilt Treasury Management, Wellsboro Earl Clevenstine Lending, Doylestown GROWTH AWARD Recipients of this award were team members showing tremendous improvement in achieving their goals, learning new skills, and showing initiative in trying to improve and learn from their team members. Amber Schwab Branch Delivery, Emporium Marissa Berthiaume Branch Delivery, Sayre Cultural Excellence Team Award This award recognizes a team that displays excellence in executing the mission of C&N and consistently goes above and beyond to assist their clients. IT Team High Performing Team Award This award recognizes a team that consistently displayed excellence by hitting their goals, as well as continu - ing to drive the mission of C&N. Client Care Center 18

| IMPACTful Awards Peer Nominated C&N CARES AWARD T his award honors an employee who shows a commitment to C&N’s values & standards through extraordinary acts of care, selflessness, and dedication to their teammates & community! Mary D’Ottavio Branch Delivery, Laporte Brandi Nowakowski Quality Control, Wellsboro Lindsey Pickering Lending, Wellsboro Aaron Waldon Credit Administration, York Michael Wetzel Lending, Coudersport SPIRIT OF SERVICE AWARD W e all work with someone who makes coming into work a positive & happier experience. This award recognizes those who have positive attitudes, show care and support for their teammates and customers. Linda Etzel Branch Delivery, Laporte Patricia Groover Client Care Center, Wellsboro Alyssa Higham Client Care Center, Wellsboro Cultural Excellence Award This award recognizes an employee who embodies C&N’s mission of developing lifelong relationships with our teammates, community, and customers and assists their teammates to do the same. Rebecca Atkins Credit Administration, Doylestown Heather Malvica Lending, Sayre Dawn Shoemaker Branch Delivery, Dushore Janelle Tombs Credit Administration, Wellsboro Philip Walker Lending, Wellsboro Best Team Partner Award This award recognizes a team for their excellence in supporting fellow teammates by consistently being a trusted source in helping solve problems or by assisting clients throughout the day. Commercial Credit Department 19

| TEAMWORK Together we are stronger. RESPONSIBILITY & ACCOUNTABILITY Work like you own it. RESPECT Value one another. EXCELLENCE Do your best. Every day. Every time. INTEGRITY Do the right thing when no one is looking. CLIENT-FOCUS Consider your customer in everything you do. HAVE FUN Work hard! Play hard! WIN! C&N Core Values 20

| Left Photo (from left to right): Kristi Reynolds, Kelsey Harer, Kait Meyers, Tina King, Brad Scovill, Skye Mahosky, Katrina Diasparra, Cindy Bianchini, Katie Evert, Cindy Carll, Amber Schwab, Rebecca Atkins, Amy Springer and Deb Sharretts. Right Photo: Teri Mitchell. Honor Remember The Teresa (Teri) L. Mitchell Scholarship This scholarship was created to honor Teri Mitchell, a C&N employee for 37 years, who was dedicated to embracing educational opportunities. Her namesake scholarship provides educational opportunities to C&N employees who display a similar commitment to their ongoing professional development and a strong work ethic. In Remembrance C&N lost three team members unexpectedly in 2021. Below we remember them and honor their legacies as friends, teammates, and active community members. All were gone too soon and dearly missed. Brandi Nowakowski was a team member at C&N for over seventeen years. She started her career at C&N in BankCard Services before moving to Quality Control in 2019 doing loan reviews. Brandi was a hard worker and a great team player. If anything was ever in question, she would dig until she found the right answer. She also carried a passion for working with Sister Jenny’s Food Pantry in Middlebury Center, where she volunteered each month, as well as doing some of their bookwork. Her presence at C&N will be greatly missed. Leonard Simpson served as a member of the Board of Directors of Citizens & Northern Corporation from 1989 to 2021. During his tenure, he served as a valuable counselor to the Board, management, and employees of the Company. Len applied his expertise and experience in various ways, including service on multiple committees over the years prior to retiring in April of 2021. He was known for his energy, good humor, and relentless involvement in the community. He is greatly missed by all. Wendy Stottlar was with C&N, formerly Monument Bank, for over thirteen years in Doylestown. Wendy worked with both businesses and consumers, where she developed many long-lasting relationships that she greatly valued. Over the years, Wendy was recognized for her superior customer service by customers and her team members. Outside of work she was committed to family, friends, and her faith. Wendy was a truly valuable asset to C&N and her teammates. She is greatly missed by all who knew her. 21

| Community Commitment C&N’s Giving Back, Giving Together program was formed by employees in 2015 as a way to do more to support their local communities. In the years since Giving Back, Giving Together started, our employees have raised $524,444 in monetary donations, collected 34,638 item donations, and volunteered 1,160 hours for 20 local food banks (2015), 52 local emergency services organizations (2016) 16 local organizations that support children in need (2017), 23 local public libraries, 17 military organizations (2019) 17 food banks (2020) and 22 children & youth organization (2021). All the funds and donations raised through this program stay within the local communities. From April 2020 to May 2021, C&N teams partnered with 17 local food banks—a cause that had quickly become increasingly more important with the COVID-19 pandemic putting millions of people suddenly out of work and relying on food banks for their next meal. Meanwhile, food banks were receiving fewer donations, the supply of many necessities was constrained and volunteers, many of whom are seniors, were hesitant to volunteer in person. During this time, the Central PA Food Bank reached out to C&N to ask for help to meet the increase in demand. C&N’s board of directors approved a $40,000 donation to help with immediate needs but also started exploring other options to help the food banks and community members while remaining compliant with the stay-at-home order. C&N began collecting monetary donations through a variety of online platforms, selling t-shirts and hosting different raffles. When the shut- down orders were lifted, teams began hosting on-site fundraisers, collecting food items, and getting out to the food banks to lend a hand. In addition to these efforts, we also hosted a scaled-down version of our annual Charity Classic golf tournament and connected with local businesses owners asking for help on behalf of the local food banks. We had 17 respond, bringing in an additional $11,000. In total, our Giving Back, Giving Together program raised $129,129, which will provide over 775,000 meals to local residents through our partnership with area food banks. In addition to the monetary donations, C&N employees collected 3,012 necessity 22

| Feeding our Community :: Volunteer Emergency Services :: Children in Need :: Literacy & Public Libraries :: Honoring Military Servicemembers :: Fighting Hunger :: Children & Youth :: $524,444 Monetary Donations 34,638 Item Donations 1,160 Volunteer Hours items and volunteered 290 hours alongside our food bank partners. In June 2021, C&N team members turned their focus to support local underprivileged youth, ensuring they have access to food, clothing, and shelter. This is another demographic that was greatly impacted by the COVID-19 pandemic. The closing of schools combined with the high cost of childcare forced many parents to give up their jobs and income to care for their kids. This also increased food insecurity by reducing children’s access to free or reduced lunches at school. A survey by the CBPP shows that around 7 to 11 million children lived in households where kids didn’t get enough food because their families couldn’t afford it. Through the end of the year, our teams raised $59,000 in monetary donations and over 4,000 basic necessity items. We sincerely appreciate the time and effort our teammates have put into this program. “The success of GBGT is a direct reflection of the passion and commitment of our teammates to their communities. We also thank our customers, community members, and business partners for sharing in our passion to give back to the communities we serve,” said Caitlin Hilliard, C&N Marketing Specialist. Monetary Donations to Date https://qrco.de/GBGT2021 Scan with Phone 23

| THANK YOU FOR YOUR CONTINUED TRUST & SUPPORT.