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Leo F. Lambert

Director at CITIZENS & NORTHERN
Board

About Leo F. Lambert

Independent director of Citizens & Northern Corporation since 2001; age 71. Former President & General Manager of Fitzpatrick & Lambert, Inc. (retired in 2022). Holds a Bachelor of Science from St. Francis College, Loretto; long-standing local business owner and community nonprofit board participant, providing over 20 years of board experience to CZNC .

Past Roles

OrganizationRoleTenureCommittees/Impact
Fitzpatrick & Lambert, Inc.President & General ManagerRetired 2022Led local enterprise; entrepreneurship and community leadership experience cited as board qualification

External Roles

OrganizationRoleTenurePublic Company?
Various nonprofit boards (unspecified)Board memberOngoingNot disclosed as public company boards
Other public boardsNone disclosedNone disclosed in prior five years beyond CZNC

Board Governance

  • Independence: All directors except the CEO are independent under NASDAQ standards; Audit and Compensation Committee members (including Lambert) are independent .
  • Committee memberships (2024):
    • Audit Committee member; 7 meetings; Chair: Stephen M. Dorwart .
    • Merger & Acquisition (M&A) Committee member; 2 meetings; Chair: Terry L. Lehman .
    • Finance & Loan Committee (Bank) member; committee merged into Risk Committee April 24, 2024; previously 1 meeting in 2024 and 13 meetings in 2023; Chair: J. Bradley Scovill .
  • Board activity and attendance: Corporation Board met 12 times; Bank Board met 12 times; independent directors held 9 executive sessions; all incumbent directors attended ≥75% of Board and committee meetings .
  • Leadership structure: Independent Chairman of the Board (Terry L. Lehman) to maintain clear separation from CEO; Chairman presides over executive sessions of independent directors .
  • Election status: Class II nominee for term expiring at the 2028 Annual Meeting (2025 Proxy) .

Fixed Compensation

Component2023 (FY)2024 (FY)
Fees Earned or Paid in Cash ($)$50,500 $52,167
Meeting fee structureBoard $1,000; Audit $700; Comp $700; Other $600 per meeting Fee schedule change effective May 1, 2024: Annual cash retainer increased from $20,000 to $45,000; standard per-meeting fees eliminated except after ≥5 meetings per committee as shown below
Committee chair fees (if applicable)Audit $7,500; Comp $5,000; Others $4,000 Audit $7,500; Comp $5,000; Risk $8,000; Others $4,000

Fee Schedule Change (Independent Directors)

ItemJan 1–Apr 30, 2024May 1–Dec 31, 2024
Annual cash retainer (all independent directors)$20,000 $45,000
Chairman additional cash retainer$25,000 $25,000
Per-meeting fees (Board, Audit, Comp, Other)Board $1,000; Audit $700; Comp $700; Other $600 Eliminated for first 1–5 meetings; resume at Audit $700, Comp $700, Other $600 after ≥5 meetings

Notes:

  • Compensation structure established by Board upon Compensation Committee recommendation; Pearl Meyer provided information for director pay review .

Performance Compensation

Equity ComponentGrant DateSharesGrant-Date Fair Value/ShareTotal Grant ValueVesting
Restricted Stock (2024 director grant)Jan 31, 20241,000 $21.39 $21,390 1-year vesting
Restricted Stock (disclosed in 2025 table)2024 awards1,000 $21.385 $21,385 Transfer restrictions outstanding at year-end 2024

Performance metrics tied to director compensation: None disclosed; director equity awards are time-based restricted stock without performance conditions .

Other Directorships & Interlocks

CompanyRoleCommittee RolesInterlock/Conflict Notes
None disclosed (public companies)No public-company interlocks disclosed for Lambert

Expertise & Qualifications

  • 40+ years as a local business owner/entrepreneur; community leadership on nonprofit boards .
  • Bachelor of Science; brings operational, small-business, and community market insights to a community bank .

Equity Ownership

ItemValue
Total beneficial ownership41,778 shares; less than 1% of class
Options outstandingNone; no outstanding stock options as of Feb 5, 2025
Restricted shares (year-end 2024)1,000 restricted shares with transfer restrictions not yet lapsed; valued at $18,600 based on 12/31/2024 close
Ownership guidelinesIndependent directors must hold stock worth ≥3× annual cash retainer ($45,000); 5-year compliance window
Guideline complianceAll directors meet the minimum or are within 5-year window
Anti-hedgingProhibits hedging/derivatives for directors/officers
PledgingNo pledging policy disclosure; no pledging by Lambert disclosed .

Insider Trades (Form 4 Filings)

DateFiling LinkSummary
Feb 2, 2024https://www.sec.gov/Archives/edgar/data/1242457/000141588924002370/0001415889-24-002370-index.htmForm 4 filed; transaction details in filing
Feb 2, 2024https://www.sec.gov/Archives/edgar/data/1242457/000141588924002340/0001415889-24-002340-index.htmRelated issuer filings page reference
May 28, 2024https://www.sec.gov/Archives/edgar/data/1242457/000141588924014638/0001415889-24-014638-index.htmForm 4 filed; transaction details in filing
Aug 16, 2024https://www.sec.gov/Archives/edgar/data/1242457/000141588924021434/0001415889-24-021434-index.htmForm 4 filed; transaction details in filing
Apr 25, 2025http://pdf.secdatabase.com/2056/0001415889-25-011371.pdfForm 4 filed; transaction details in filing
May 20, 2025https://www.sec.gov/Archives/edgar/data/810958/000141588925013806/xslF345X03/form4-05202025_080508.xmlForm 4 filed; transaction details in filing
Summary (past 5 years)5 transactions; all buys; 0 sells (per GuruFocus)

Section 16 compliance: One late filing due to administrative oversight was disclosed for Director Dorwart; no late filings disclosed for Lambert .

Fixed vs Performance Compensation Mix (Lambert)

YearCash Fees ($)Stock Awards ($)Total ($)
202350,500 23,350 73,850
202452,167 21,385 73,552

Observations:

  • Mix reflects shift to higher fixed retainer and reduced per-meeting fees in 2024, with consistent annual restricted stock grants of 1,000 shares; stock award value varies with grant-date price .

Potential Conflicts & Related-Party Exposure

  • Insider loans/deposits: Directors/officers and their affiliates may be Bank customers; transactions (including credit) conducted on substantially the same terms as unaffiliated parties per Regulation O; 2024 had no related person transactions requiring SEC disclosure thresholds .
  • Anti-hedging: Policy prohibits hedging transactions for directors and officers (alignment positive). No explicit anti-pledging policy disclosed .

Governance Assessment

  • Strengths
    • Long-tenured independent director with local market/business expertise, committee service on Audit and M&A; Audit Committee fully independent; Board has independent Chair .
    • Attendance threshold met; active executive sessions of independent directors (9 in 2024) .
    • Stock ownership guidelines in place and met; anti-hedging policy enforced; no stock options outstanding; consistent equity grants align director interests .
    • No related person transactions requiring disclosure in 2024; no Section 16 delinquency disclosed for Lambert .
  • Watch items
    • Insider loans common to community banks but governed by Regulation O; continue monitoring for any exceptions or changes in terms (neutral risk) .
    • Meeting fee elimination may reduce variable incentives tied to attendance; monitor engagement via committee workloads and executive session frequency .
  • RED FLAGS
    • None disclosed specific to Lambert (no pledging, no RPTs above thresholds, no late Section 16 filings) .