Company: CCNE
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000736772-25-000202
Chunk: 17

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 17
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 incurred, and are recorded in “Merger and integration costs” on the Corporation's condensed Consolidated Statements of Income. Goodwill is not deductible for income tax purposes as the transaction qualifies as a tax free “reorganization” within the meaning of Section 368(a).The following tables provides a summary of the consideration transferred and the fair value of the assets acquired, and liabilities assumed as of the date of the Merger, (dollars in thousands):July 23, 2025Merger considerationValue of stock consideration assigned to ESSA common shares exchanged for stock paid to shareholders$202,549 Value of cash consideration for ESSA common stock exchanged for cash21 Total merger consideration$202,570 July 23, 2025Identifiable net assets acquired, at fair valueAssets acquiredCash and cash equivalents$27,424 Debt securities available-for-sale229,098 Loans receivable1,651,056 Premises and equipment16,019 Operating lease right of use assets3,706 Accrued interest receivable and other assets45,810 FHLB interests24,218 Bank owned life insurance40,835 Core deposit intangible35,335 Goodwill49,899 Total assets acquired2,123,400 Liabilities assumedDeposits1,455,805 Short-term borrowings437,000 Accrued interest payable and other liabilities24,424 Operating lease liabilities3,601 Total liabilities assumed1,920,830 Net assets acquired$202,570 The Corporation accounted for the Merger using the acquisition method of accounting and accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair value on the acquisition date, in accordance with purchase accounting. The Corporation assessed the fair values based on the following methods for the significant assets acquired and liabilities assumed:

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Cash and cash equivalents: The fair value was determined to approximate the carrying amount based on the short-term nature of these assets.Debt securities AFS: The fair value of the investment portfolio was based on quoted market prices and dealer quotes and pricing obtained from independent pricing services. Following the completion of the Merger, the Corporation sold approximately $204.1 million of $229.1 million in debt securities it acquired through the Merger. These debt securities were sold at fair value and therefore no gain or loss was recognized upon the sale.Loans receivable: The fair value of loans acquired from ESSA were estimated using the discounted