Company: CCNE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000736772-25-000202
Chunk: 197

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 197
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 interest rate swaps within the Corporation's condensed consolidated balance sheet as of September 30, 2025 and December 31, 2024:

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Fair ValueNotionalAmountAssetLiabilitySeptember 30, 2025$180,819 $6,429 (a)$6,429 (b)December 31, 2024$65,629 $423 (a)$423 (b)(a)Reported in accrued interest receivable and other assets within the condensed consolidated balance sheets(b)Reported in accrued interest payable and other liabilities within the condensed 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, 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 $44.1 million as of September 30, 2025 and $21.3 million as of December 31, 2024. 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 $28.8 million as of September 30, 2025 and $25.5 million as of December 31, 2024. The fair value of the RPAs swaps was $23 thousand and $11 thousand as of September 30, 2025 and December 31, 2024, respectively, and is reported in accrued interest payable and other liabilities within the condensed consolidated balance sheets.

14.    FAIR VALUE

Fair Value MeasurementFair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.The following three levels of inputs are used to measure fair value: