Company: CCNE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000736772-25-000071
Chunk: 201

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-06
Form: 10-K
Item: Item 8
Chunk 201
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 2023:Fair ValueNotionalAmountAssetLiabilityDecember 31, 2024$65,629 $423 (a)$423 (b)December 31, 2023$21,302 $1,013 (a)$1,013 (b)(a)Reported in accrued interest receivable and other assets within the  consolidated balance sheets(b)Reported in accrued interest payable and other liabilities within the  consolidated balance sheetsRisk Participation AgreementsThe Corporation’s existing credit derivatives result from participation in or out of interest rate swaps provided by or to external lenders as part of loan participation arrangements, and therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain lenders which participate in loans.The Corporation entered into Risk Participation Agreement ("RPA") swaps with other financial institutions related to loans in which the Corporation is a participant in. The RPA provides credit protection to the financial institution should the borrower fail to perform on its interest rate derivative contract with the financial institution. The notional amount of this contingent agreement is $21.3 million as of December 31, 2024 and $21.7 million as of December 31, 2023. The Corporation entered into RPA swaps with other financial institutions related to loans in which the Corporation is a participant out. The RPA provides credit protection to the Corporation should the borrower fail to perform on its interest rate derivative contract with the financial institution. The notional amount of this contingent agreement is $25.5 million as of December 31, 2024 and zero as of December 31, 2023. The fair value of the RPA swaps was $11 thousand and $49 thousand as of December 31, 2024 and December 31, 2023, respectively, and is reported in accrued interest payable and other liabilities within the condensed consolidated balance sheets.

18.  Off-Balance Sheet Commitments and Contingencies

Financial Instruments with Off-Balance Sheet RiskThe Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Corporation's exposure to credit loss in the event