Company: CCNE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000736772-25-000071
Chunk: 127

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-06
Form: 10-K
Item: Item 8
Chunk 127
---
, including examination of loss experience at representative peer institutions when the Corporation’s loss history does not result in estimations that are meaningful to users of the Corporation’s Consolidated Financial Statements, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, changes in environmental conditions, delinquency level, segment growth rates and changes in duration within new markets, or other relevant factors.The DCF model uses inputs of current and forecasted macroeconomic indicators to predict future loss rates. The current macroeconomic indicator utilized by the Corporation is the Federal unemployment rate and the S&P/Case-Shiller U.S. National Home Price Index for select collective residential related pools. In building the current expected credit loss methodology utilized in the DCF model, a correlation between this indicator and historic loss levels was developed, enabling a prediction of future loss rates related to future Federal unemployment rates and S&P/Case-Shiller U.S. National Home Price Index. 

71

The portfolio segments utilizing the DCF methodology comprised 91.3% and 85.9% of the amortized cost of loans as of December 31, 2024 and December 31, 2023, respectively, and included: •Farmland•Home equity lines of credit•Residential Mortgages secured by first liens•Residential Mortgages secured by junior liens•Multifamily (5 or more) residential properties•Owner-occupied, nonfarm nonresidential properties•Non-owner occupied, nonfarm nonresidential properties•Agricultural production and other loans to farmers•Commercial and Industrial•Automobile•Obligations (other than securities and leases) of states and political subdivisions•Other loansThe WARM model uses combined historic loss rates for the Corporation and peer institutions, if necessary, gathered from call report filings. The selected period for which historic loss rates are used is dependent on management's evaluation of current conditions and expectations of future loss conditions. The portfolio segments utilizing the WARM methodology comprised 8.7% and 14.1% of the amortized cost of loans as of December 31, 2024 and December 31, 2023, respectively, and included:•1-4 Family Construction•Other construction loans and all land development and other land loans•Credit cards•Other revolving credit plans•Other consumerLoans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in