Company: CCNE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000736772-25-000071
Chunk: 203

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-06
Form: 10-K
Item: Item 8
Chunk 203
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 include securities, accounts receivable, inventory, property, plant and equipment, and residential and income-producing commercial properties.Allowance for Credit Losses on Unfunded Loan CommitmentsThe Corporation maintains an allowance for credit losses on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The allowance is computed using a methodology similar to that used to determine the allowance for credit losses for loans receivable, modified to take into account the probability of a draw-down on the commitment. The provision for credit losses on unfunded loan commitments is included in the provision for credit losses on the Corporation's consolidated statements of income. The allowance for unfunded commitments is included in other liabilities in the consolidated balance sheets. Note 3, "Loans Receivable and Allowance for Credit Losses," in the consolidated financial statements provides more detail concerning the provision for credit losses related to the loan portfolio of the Corporation.The following table presents activity in the allowance for credit losses on unfunded loan commitments for the years ended December 31, 2024, 2023, and 2022, respectively:Year ended December 31, 202420232022Beginning balance$759 $603 $— Provision for credit losses on unfunded loan commitments (1)185 156 603 Ending balance$944 $759 $603 (1) Excludes provision for credit losses related to the loan portfolio.Investments in Small Business Investment Corporation and Community Development EntitiesThe Corporation makes investments in limited partnerships, including certain small business investment corporations ("SBICs") and community development entities ("CDEs"). Capital contributions for investments in SBICs and CDEs, reported in FHLB and other restricted stock holdings and investment on the consolidated balance sheet, as of December 31, 2024 and 2023, were $23.5 million and $21.7 million, respectively. Unfunded capital commitments in investments in SBIC's and other limited partnerships totaled $8.0 million and $6.8 million as of December 31, 2024 and 2023, respectively. These investments are accounted for under the equity method of accounting.Investments in Qualified Affordable Housing Project InvestmentsThe carrying value of investments in the low-income housing partnerships, reported in FHLB and other restricted stock holdings and investments on the consolidated balance sheet, as of December 31, 2024 and 2023 were $7.3 million and $3.