Company: CCNE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000736772-25-000202
Chunk: 150

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 150
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 attrition rates, cost of deposit base, net maintenance cost associated with customer deposits, and the cost for alternative funding sources. The discount rates used were based on market rates.Deposits: The fair value of interest bearing and non-interest bearing deposits is the amount payable on demand at the acquisition date. The fair value of time deposits was estimated using a discounted cash flow calculation that includes a market rate analysis of the current rates offered by market participants for certificates of deposits that mature in the same period.Short-term Borrowings: Acquired other borrowings consisted of FHLB short-term borrowings. The carrying amount of short-term borrowings was determined to approximate fair value. Subsequent to the completion of the acquisition, the Corporation repaid $265.4 million of $437.0 million in FHLB borrowings.Accrued interest payable and other liabilities: Accrued interest payable and other liabilities were fair valued using the expected amount of cash to be paid.Supplemental Pro Forma Financial InformationThe following table presents supplemental pro forma information as if the Merger had occurred as of January 1, 2024. The unaudited pro forma information combines the historical results of the Corporation and ESSA in the Corporation’s Consolidated Statements of Income and includes adjustments for the estimated impact of certain fair value adjustments such as interest income on loans and securities acquired, amortization of intangibles arising from the merger, depreciation expense on property acquired, interest expense on deposits acquired, and the related income tax effects. The pro forma information is not indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates. The Corporation expects to realize additional operating cost savings and business synergies from the acquisition; however, such anticipated benefits are not reflected in the pro forma amounts presented below (dollars in thousands).Pro Forma Three Months EndedPro Forma Nine Months EndedSeptember 30, 2025September 30, 2024September 30, 2025September 30, 2024(Unaudited)(Unaudited)(Unaudited)(Unaudited)CNB Standalone Revenues$77,695 $58,459 $195,838 $167,218 ESSA Standalone Revenues4,419 16,516 37,306 49,661 Loan Accretion6,422 7,706 19,265 23,118 Total revenues(1)88,536 82,681 252,409 239