Company: CCNE
Filing Date: 2025-02-20
Form Type: S-4
Source: 0001193125-25-030821
Chunk: 72

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-02-20
Form: S-4
Chunk 72
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 Board of Directors, which meets four times per year.

Credit risk represents the possibility that a loan customer or an investment’s underlying obligor may not perform in accordance with contractual terms. CNB manages credit risk by following an established credit policy and through a disciplined evaluation of the adequacy of the allowance for credit losses. Also, the investment policy limits the amount of credit risk that may be taken in the securities portfolio. Such policies and systems are monitored by both the Asset/Liability Committee of the CNB Board of Directors and the Loan Committee of the CNB Board of Directors, which meets four times per year. The evaluation of the allowance for credit losses by CNB’s independent registered public accounting firm, which identified the allowance for credit losses as a critical audit matter, is also subject to review by the Audit Committee.

Liquidity risk represents the inability of an entity to generate or otherwise obtain funds at reasonable rates to satisfy commitments to borrowers and obligations to depositors. CNB has established guidelines within its asset liability management policy to manage liquidity risk. These guidelines include establishing contingent funding alternatives, and evaluation of the adequacy of on-hand and contingent liquidity resources compared to uninsured deposits. Such guidelines are monitored by the Management Asset/Liability Committee and by the Asset/Liability Committee of the CNB Board of Directors.

Meetings and Committees of the CNB Board of Directors

The CNB Board of Directors held ten meetings during 2024. Each incumbent director attended at least 75% of the aggregate of (i) the total number of meetings held by the CNB Board of Directors during the period that the individual served and (ii) the total number of meetings held by all committees of the CNB Board of Directors on which the individual served during the period that the individual served. All directors attended the 2024 annual meeting of CNB shareholders.

The board of directors of CNB and CNB Bank have three standing joint committees that serve both CNB and CNB Bank, including the Audit Committee, the Executive Compensation and Personnel Committee, and the Corporate Governance/Nominating Committee. Director Jeffrey S. Powell is an ex-officio member of all three committees if not otherwise named.

Audit Committee

The Audit Committee met four times in 2024. The Audit Committee appoints CNB’s independent registered public accounting firm, reviews and approves the audit plan and fee estimate of the independent registered public accounting firm, appraises the effectiveness of the internal and external audit efforts, evaluates the adequacy and effectiveness of accounting policies and financial and accounting management, approves and evaluates