Company: CCNE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000736772-25-000087
Chunk: 152

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 8
Chunk 152
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 total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral that is held varies but may 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 condensed consolidated statements of income. The allowance for unfunded commitments is included in other liabilities in the condensed consolidated balance sheets. Note 4, "Loans Receivable and Allowance for Credit Losses," in the condensed 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 three months ended March 31, 2025 and 2024, respectively:Three Months Ended March 31, 20252024Beginning balance$944 $759 Provision for credit losses on unfunded loan commitments (1)117 (24)Ending balance$1,061 $735 (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 and community development entities. Capital contributions for investments in small business companies ("SBIC") and community development entities ("CDE"), reported in FHLB and other restricted stock holdings and investments on the condensed consolidated balance sheet, as of March 31, 2025 and December 31, 2024 were $24.2 million and $23.5 million, respectively. Unfunded capital commitments in investments in SBICs and CDEs totaled $7.3 million and $8.0 million as of March 31, 2025 and December 31, 2024, respectively. These investments are accounted for under the