Company: CCNE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000736772-25-000071
Chunk: 199

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-06
Form: 10-K
Item: Item 8
Chunk 199
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 the Corporation executed an interest rate swap agreement with a 5-year term and an effective date of September 15, 2018 in order to hedge cash flows associated with $10.0 million of a subordinated note that was issued by the Corporation during 2007 and elected cash flow hedge accounting for the agreement. The Corporation’s objective in using this derivative is to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2018 to September 15, 2023 without the exchange of the underlying notional amount. The swap that expired on September 15, 2023 was not renewed.As of December 31, 2024 and 2023, no derivatives were designated as fair value hedges or hedges of net investments in foreign operations. Additionally, the Corporation does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges.

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The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023, and 2022:Liability Derivative   Balance SheetFair value  LocationDecember 31, 2024December 31, 2023Interest rate contractAccrued interest receivable (payable) and other assets (liabilities)$—$—For the Year Ended December 31, 2024(a)(b)(c)(d)(e)Interest rate contract$—Interest expense – subordinated debentures$—Otherincome$—For the Year Ended December 31, 2023Interest rate contract(119)Interest expense – subordinated debentures151Otherincome—For the Year Ended December 31, 2022Interest rate contract425Interest expense – subordinated debentures(127)Otherincome—(a)Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax(b)Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)(c)Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective