Company: CCNE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000736772-25-000169
Chunk: 186

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 186
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, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Corporation reviews the third-party appraisal for appropriateness and may adjust the value downward to consider selling and closing costs. For non-real estate loans, fair value of the loan's collateral may be determined using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the client and client's business.

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The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2025:FairvalueValuationTechniqueUnobservable InputsRange(WeightedAverage)Collateral-dependent loans receivable:Farmland$352 Valuation of third party appraisal on underlying collateralLoss severity rates41% (41%)Owner-occupied, nonfarm nonresidential properties1,182 Valuation of third party appraisal on underlying collateralLoss severity rates22%-48% (43%)Commercial and industrial2,151 Valuation of third party appraisal on underlying collateralLoss severity rates10%-100% (28%)Other construction loans and all land development loans and other land loans1,152 Valuation of third party appraisal on underlying collateralLoss severity rates42% (42%)Multifamily (5 or more) residential properties199 Valuation of third party appraisal on underlying collateralLoss severity rates40% (40%)Non-owner occupied, nonfarm nonresidential3,596 Valuation of third party appraisal on underlying collateralLoss severity rates53% (53%)Home equity lines of credit737 Valuation of third party appraisal on underlying collateralLoss severity rates27%-41% (38%)Residential Mortgages secured by first liens598 Valuation of third party appraisal on underlying collateralLoss severity rates29%-40% (36%)The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis