Company: CCNE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000736772-25-000087
Chunk: 51

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 1
Chunk 51
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$10,406 $11,525 Net earnings allocated to participating securities(57)(92)Net earnings allocated to common stock$10,349 $11,433 Distributed earnings allocated to common stock$3,756 $3,646 Undistributed earnings allocated to common stock6,593 7,787 Net earnings allocated to common stock$10,349 $11,433 Weighted average common shares outstanding, including shares considered participating securities20,981 20,979 Less: Average participating securities(114)(155)Weighted average shares20,867 20,824 Basic earnings per common share$0.50 $0.55 Diluted earnings per common share computation:Net earnings allocated to common stock$10,349 $11,433 Weighted average common shares outstanding for basic earnings per common share20,867 20,824 Add: Dilutive effect of stock compensation58 63 Weighted average shares and dilutive potential common shares20,925 20,887 Diluted earnings per common share$0.50 $0.55 

12.    DERIVATIVE INSTRUMENTS

As of March 31, 2025 and December 31, 2024, 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.Derivatives on Behalf of CustomersThe Corporation entered into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Corporation enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Corporation agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. Concurrently, the Corporation agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the Corporation’s customers to effectively convert a variable rate loan to a fixed rate. Because the Corporation acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not impact the Corporation’s results of operations.

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