CNB FINANCIAL CORPPA

Previous wording

The Corporation’s subsidiary, CNB Bank (the "Bank"), provides financial services to individuals and businesses. The Bank franchise's primary market areas are the Pennsylvania counties of Blair, Cambria, Centre, Clearfield, Elk, Indiana, Jefferson, and McKean. ERIEBANK, a division of the Bank, operates in the Pennsylvania counties of Crawford, Erie, and Warren and in the Ohio counties of Ashtabula, Cuyahoga, Geauga, Lake, and Lorain. FCBank, a division of the Bank, operates in the Ohio counties of Crawford, Delaware, Franklin, Knox, Marion, Morrow and Richland. BankOnBuffalo, a division of the Bank, operates in the New York counties of Erie and Niagara. Ridge View Bank, a division of the Bank, operates in the Virginia counties of Botetourt, Craig, Franklin, and Roanoke. Impressia Bank, a division of the Bank, operates in the Bank’s primary market areas. Although the Corporation’s strategies, through the Bank, are executed based on the divisions discussed above, the Bank is a single Pennsylvania-chartered bank whereby all divisions of the Bank conduct their business on a doing business as basis.

Current wording

The Corporation’s subsidiary, CNB Bank, provides financial services to individuals and businesses. The Bank franchise's primary market areas are the Pennsylvania counties of Blair, Cambria, Centre, Clearfield, Elk, Indiana, Jefferson, and McKean. ERIEBANK, a division of the Bank, operates in the Pennsylvania counties of Crawford, Erie, and Warren and in the Ohio counties of Ashtabula, Cuyahoga, Geauga, Lake, and Lorain. FCBank, a division of the Bank, operates in the Ohio counties of Crawford, Delaware, Franklin, Knox, Marion, Morrow, and Richland. BankOnBuffalo, a division of the Bank, operates in the New York counties of Erie and Niagara. Ridge View Bank, a division of the Bank, operates in the Virginia counties of Botetourt, Craig, Franklin, New River Valley, and Roanoke. Impressia Bank, a division of the Bank, operates in the Bank’s primary market areas. Although the Corporation’s strategies, through the Bank, are executed based on the divisions discussed above, the Bank is a single Pennsylvania-chartered bank whereby all divisions of the Bank conduct their business on a doing business as basis.

Previous wording

The following discussion should be read in conjunction with the Corporation’s consolidated financial statements and notes thereto for the year ended December 31, 2023, included in its Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"), and in conjunction with the condensed consolidated financial statements and notes thereto included in Item 1 of this report. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results for the full year ending December 31, 2024, or any future period.

Current wording

The following discussion should be read in conjunction with the Corporation’s consolidated financial statements and notes thereto for the year ended December 31, 2023, included the 2023 Form 10-K, and in conjunction with the condensed consolidated financial statements and notes thereto included in Item 1 of this report. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results for the full year ending December 31, 2024, or any future period.

Previous wording

Cash and cash equivalents totaled $301.5 million at March 31, 2024, including additional excess liquidity of $259.5 million held at the Federal Reserve, compared to $222.0 million at December 31, 2023. These excess funds, when combined with $3.6 billion in (i) available borrowing capacity from the Federal Home Loan Bank of Pittsburgh ("FHLB") and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, result in the total on-hand and contingent liquidity sources for the Corporation to be approximately 4.3 times the estimated amount of adjusted uninsured deposit balances.

Current wording

Cash and cash equivalents totaled $331.1 million at June 30, 2024, including additional excess liquidity of $271.9 million held at the Federal Reserve, compared to $222.0 million at December 31, 2023. These excess funds, when combined with collective contingent liquidity resources of $4.5 billion including (i) available borrowing capacity from the FHLB and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, result in the total on-hand and contingent liquidity sources for the Corporation to be approximately 5.0 times the estimated amount of adjusted uninsured deposit balances.

Previous wording

AFS debt securities and equity securities combined totaled $358.1 million and $351.3 million at March 31, 2024 and December 31, 2023, respectively. At March 31, 2024, the total balance of investments classified as held-to-maturity ("HTM") debt securities was $381.7 million compared to $389.0 million at December 31, 2023.

Current wording

AFS debt securities and equity securities combined totaled $369.6 million and $351.3 million at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, the total balance of investments classified as HTM debt securities was $354.6 million compared to $389.0 million at December 31, 2023.

Previous wording

At March 31, 2024, the Corporation's condensed consolidated balance sheet reflected a decrease in syndicated lending balances of $30.0 million compared to December 31, 2023, primarily resulting from scheduled paydowns or early payoffs of certain syndicated credits. The syndicated loan portfolio totaled $78.7 million, or 1.78% of total loans, at March 31, 2024, compared to $108.7 million, or 2.43% of total loans at December 31, 2023. The Corporation continues to de-emphasize syndicated loans as it focuses on prioritizing funding on organic loan growth from its customer relationships.

Current wording

At June 30, 2024, the Corporation's condensed consolidated balance sheet reflected a decrease in syndicated lending balances of $54.8 million compared to December 31, 2023, primarily resulting from scheduled paydowns or early payoffs of certain syndicated loans. The syndicated loan portfolio totaled $53.9 million, or 1.20% of total loans, at June 30, 2024, compared to $108.7 million, or 2.43% of total loans at December 31, 2023. The Corporation is closely managing the level of its syndicated loan portfolio as it focuses more resources on organic loan growth from its customer relationships.

Previous wording

◦171 outstanding loans, totaling $263.5 million, or 5.95%, of total Corporation loans outstanding;

Current wording

◦There were 171 outstanding loans, totaling $298.7 million, or 6.67%, of total Corporation loans outstanding;

Previous wording

◦208 outstanding loans, totaling $213.8 million, or 4.82%, of total Corporation loans outstanding;

Current wording

◦There were 217 outstanding loans, totaling $281.6 million, or 6.29%, of total Corporation loans outstanding;

Previous wording

◦Nonaccrual commercial multifamily loans (one customer relationship) totaled $300 thousand, or 0.09% of total multifamily loans outstanding. The one customer relationship did not have a related specific loss reserve at March 31, 2024; and

Current wording

◦Nonaccrual commercial multifamily loans (two customer relationship) totaled $541 thousand, or 0.19% of total multifamily loans outstanding. The two customer relationship did not have a related specific loss reserve at June 30, 2024; and

Previous wording

The Corporation had no commercial office, hospitality or multifamily loan relationships considered by the banking regulators to be a high volatility commercial real estate ("HVCRE") credit.

Current wording

The Corporation had no commercial office, hospitality or multifamily loan relationships considered by the banking regulators to be a high volatility commercial real estate credit.

Previous wording

Total nonperforming assets were $30.7 million, or 0.53% of total assets, as of March 31, 2024, compared to $31.8 million, or 0.55% of total assets, as of December 31, 2023. In addition, the allowance for credit losses as a percentage of nonaccrual loans was 159.41% at March 31, 2024, compared to 154.63% at December 31, 2023. The decrease in nonperforming assets was due to paydowns and payoffs combined with a $596 thousand charge-down of one owner-occupied commercial real estate relationship (remaining balance of $308 thousand).

Current wording

Total nonperforming assets were $36.5 million, or 0.62% of total assets, as of June 30, 2024, compared to $31.8 million, or 0.55% of total assets, as of December 31, 2023. In addition, the allowance for credit losses as a percentage of nonaccrual loans was 130.88% at June 30, 2024, compared to 154.63% at December 31, 2023. The increase in nonperforming assets was primarily due to two relationships. The first relationship was a commercial and industrial relationship totaling $3.1 million with a specific reserve balance of $1.2 million, and the second relationship was an owner-occupied commercial real estate relationship totaling $4.6 million with a specific reserve balance of $1.2 million. Management does not believe there is risk of significant additional loss exposures beyond the specific reserves related to these loan relationships.

Previous wording

The allowance for credit losses measured as a percentage of total loans receivable was both 1.03% as of March 31, 2024 and December 31, 2023.

Current wording

The allowance for credit losses measured as a percentage of total loans receivable was 1.02% as of June 30, 2024 and 1.03% as of December 31, 2023.

Previous wording

For the three months ended March 31, 2024, the allowance for credit losses remained unchanged. The growth in the Corporation's loan portfolio in new market areas was offset by improvements in the Corporation's historical loss rates, as well as the impact of net charge-offs. Significant uncertainty persists regarding the domestic and global economy, tightening credit conditions, persistent inflation, and higher interest rates. Management will continue to proactively evaluate its estimate of expected credit losses as new information becomes available.

Current wording

For the six months ended June 30, 2024, the allowance for credit losses decreased $300 thousand. The growth in the Corporation's loan portfolio in new market areas was offset by improvements in the Corporation's historical loss rates, as well as the impact of net charge-offs. Significant uncertainty persists regarding the domestic and global economy, tightening credit conditions, persistent inflation, and higher interest rates. Management will continue to proactively evaluate its estimate of expected credit losses as new information becomes available.

Previous wording

The provision for credit losses was $1.3 million for the three months ended March 31, 2024 and March 31, 2023, respectively. Included in the provision for credit losses for the three months ended March 31, 2024 was $24 thousand income related to the allowance for unfunded commitments compared to $59 thousand expense for the three months ended March 31, 2023.

Current wording

Provision for credit losses was $2.6 million and $3.9 million for the three and six months ended June 30, 2024, respectively, compared to $2.4 million and $3.7 million for the three and six months ended June 30, 2023, respectively. Included in the provision for credit losses for the three and six months ended June 30, 2024 was $87 thousand and $63 thousand, respectively, related to the allowance for unfunded commitments compared to $56 and $115 thousand accrual towards the allowance for unfunded commitments for the three and six months ended June 30, 2023, respectively.

Previous wording

At March 31, 2024, total deposits were $5.0 billion, reflecting an increase of $38.8 million, or 0.78%, from December 31, 2023. The increase in deposit balances was primarily attributable to an increase in municipal and retail deposits, partially offset by seasonal fluctuations in business deposits. In addition, the total number of deposit households increased by approximately 0.77% from December 31, 2023.

Current wording

At June 30, 2024, total deposits were $5.1 billion, reflecting an increase of $112.1 million, or 2.24%, from December 31, 2023. The increase in deposit balances was primarily attributable to an increase in business and retail deposits. In addition, the total number of deposit households increased by approximately 1.46% from December 31, 2023.

Previous wording

At March 31, 2024, the average deposit balance per account for the Bank was approximately $33 thousand. The Bank had increases in municipal deposits, as well as retail customer household deposits, including those added from the 2023 launches of (i) the Bank's "At Ease" account, a service for U.S. service member and veteran families, and (ii) the Corporation's women-focused banking division, Impressia Bank.

Current wording

At June 30, 2024, the average deposit balance per account for the Bank was approximately $33 thousand. The Bank had increases in municipal deposits, as well as retail customer household deposits, including those added after the 2023 launches of (i) the Bank's "At Ease" account, a service for U.S. service member and veteran families, and (ii) the Corporation's women-focused banking division, Impressia Bank.

Previous wording

At March 31, 2024, the total estimated uninsured deposits for the Bank were approximately $1.4 billion, or approximately 27.70% of total Bank deposits. However, when excluding $101.1 million of affiliate company deposits and $437.9 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $884.6 million, or approximately 17.21% of total Bank deposits as of March 31, 2024.

Current wording

At June 30, 2024, the total estimated uninsured deposits for the Bank were approximately $1.5 billion, or approximately 29.00% of total Bank deposits. However, when excluding $101.4 million of affiliate company deposits and $460.7 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $949.8 million, or approximately 18.22% of total Bank deposits as of June 30, 2024.

Previous wording

At December 31, 2023, the total estimated uninsured deposits for the Bank were approximately $1.4 billion, or approximately 28.2% of total Bank deposits. However, when excluding affiliate company deposits of $101.3 million and pledged-investment collateralized deposits of $400.5 million, the adjusted amount and percentage of total estimated uninsured deposits was approximately $937.1 million, or approximately 18.4% of total Bank deposits as of December 31, 2023.

Current wording

At December 31, 2023, the total estimated uninsured deposits for the Bank were approximately $1.4 billion, or approximately 28.21% of total Bank deposits. However, when excluding affiliate company deposits of $101.3 million and pledged-investment collateralized deposits of $400.5 million, the adjusted amount and percentage of total estimated uninsured deposits was approximately $937.1 million, or approximately 18.37% of total Bank deposits as of December 31, 2023.

Previous wording

At March 31, 2024, the Corporation’s cash and cash equivalents position was approximately $301.5 million, including liquidity of $259.5 million held at the Federal Reserve. These excess funds, when combined with $3.6 billion in (i) available borrowing capacity from the FHLB and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, result in the total on-hand and contingent liquidity sources for the Corporation to be approximately 4.3 times the estimated amount of adjusted uninsured deposit balances discussed above.

Current wording

At June 30, 2024, the Corporation’s cash and cash equivalents position was approximately $331.1 million, including liquidity of $271.9 million held at the Federal Reserve. These excess funds, when combined with $4.5 billion in (i) available borrowing capacity from the FHLB and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, result in the total on-hand and contingent liquidity sources for the Corporation to be approximately 5.0 times the estimated amount of adjusted uninsured deposit balances discussed above.

Previous wording

As of March 31, 2024, the Corporation’s total shareholders’ equity was $578.6 million, representing an increase of $7.4 million, or 1.29%, from December 31, 2023, primarily due to an increase in the Corporation's retained earnings (quarterly net income, partially offset by the common and preferred dividends paid in the quarter).

Current wording

As of June 30, 2024, the Corporation’s total shareholders’ equity was $586.7 million, representing an increase of $15.5 million, or 2.71%, from December 31, 2023, primarily due to an increase in the Corporation's retained earnings (net income, partially offset by the common and preferred dividends paid).

Previous wording

At March 31, 2024, the Corporation's pre-tax net unrealized losses on available-for-sale and held-to-maturity securities totaled approximately $85.0 million, or 14.69% of total shareholders' equity, compared to $82.2 million, or 14.40% of total shareholders' equity at December 31, 2023. The change is unrealized losses was primarily due to changes in the yield curve in the first quarter of 2024 compared to the fourth quarter of 2023, relative to the Corporation's scheduled bond maturities. Importantly, all regulatory capital ratios for the Corporation would exceed regulatory "well-capitalized" levels as of both March 31, 2024 and December 31, 2023 if the net unrealized losses were fully recognized. Additionally, the Corporation maintains $100.3 million of liquid funds at its holding company, which more than covers the $85.0 million in unrealized losses on investments held primarily in its wholly-owned banking subsidiary, as an immediately available source of contingent capital to be down-streamed to the Bank, if necessary.

Current wording

At June 30, 2024, the Corporation's pre-tax net unrealized losses on available-for-sale and held-to-maturity securities totaled approximately $84.1 million, or 14.33% of total shareholders' equity, compared to $82.2 million, or 14.40% of total shareholders' equity at December 31, 2023. The change is unrealized losses was primarily due to changes in the yield curve during the first and second quarters of 2024 compared to 2023, relative to the Corporation's scheduled bond maturities. Importantly, all regulatory capital ratios for the Corporation would exceed regulatory "well-capitalized" levels as of both June 30, 2024 and December 31, 2023 if the net unrealized losses at the respective dates were fully recognized. Additionally, the Corporation maintained $100.5 million of liquid funds at its holding company, which more than covers the $84.1 million in unrealized losses on investments held primarily in its wholly-owned banking subsidiary, as an immediately available source of contingent capital to be down-streamed to the Bank, if necessary.

Previous wording

(2)Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the three months ended March 31, 2024 and 2023 was $217 thousand and $270 thousand, respectively.

Current wording

(2)Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the three months ended June 30, 2024 and 2023 was $214 thousand and $243 thousand, respectively.

Previous wording

(4) Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the three months ended March 31, 2024 and 2023 was $(55.1) million and $(58.7) million, respectively.

Current wording

(4) Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the three months ended June 30, 2024 and 2023 was $(59.2) million and $(55.9) million, respectively.

Previous wording

Net income available to common shareholders ("earnings") was $11.5 million, or $0.55 per diluted share, for the three months ended March 31, 2024. The Corporation’s earnings for the three months ended March 31, 2023 were $15.4 million, or $0.73 per diluted share. The decrease in diluted earnings per share comparing the quarter ended March 31, 2024 to the quarter ended March 31, 2023 was primarily due to the significant year-over-year increase in deposit costs primarily resulting from Federal Reserve rate increases throughout 2023 and the resulting market impact to the Corporation's deposit base.

Current wording

Net income available to common shareholders ("earnings") was $11.9 million, or $0.56 per diluted share, for the three months ended June 30, 2024. The Corporation’s earnings for the three months ended June 30, 2023 were $12.8 million, or $0.61 per diluted share. The decrease in diluted earnings per share comparing the three months ended June 30, 2024 to the three months ended June 30, 2023 was primarily due to the significant year-over-year increase in deposit costs primarily resulting from Federal Reserve rate increases throughout 2023 and the resulting market impact to the Corporation's deposit base.

Previous wording

Annualized return on average equity was 8.79% for the three months ended March 31, 2024, compared to 12.60% for the three months ended March 31, 2023. Annualized return on average tangible common equity, a non-GAAP measure, was 9.77% for the three months ended March 31, 2024, compared to 14.58% for the three months ended March 31, 2023.

Current wording

Annualized return on average equity was 8.94% for the three months ended June 30, 2024, compared to 10.07% for the three months ended June 30, 2023. Annualized return on average tangible common equity, a non-GAAP measure, was 9.93% for the three months ended June 30, 2024, compared to 11.40% for the three months ended June 30, 2023.

Previous wording

The Corporation's efficiency ratio was 69.08% for the three months ended March 31, 2024, compared to 61.04% for the three months ended March 31, 2023. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP ratio, was 68.29% for the three months ended March 31, 2024, compared to 60.47% for the three months ended March 31, 2023.

Current wording

The Corporation's efficiency ratio was 65.94% for the three months ended June 30, 2024, compared to 64.78% for the three months ended June 30, 2023. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP ratio, was 65.20% for the three months ended June 30, 2024, compared to 64.10% for the three months ended June 30, 2023.

Previous wording

Net interest income was $45.2 million for the three months ended March 31, 2024, compared to $47.6 million, for the three months ended March 31, 2023. When comparing the first quarter of 2024 to the first quarter of 2023, the decrease in net interest income of $2.4 million, or 5.07%, was primarily due to an increase in the Corporation's interest expense as a result of targeted interest-bearing deposit rate increases to ensure both deposit relationship retention, and new deposit growth in recently entered expansion markets.

Current wording

Net interest income was $45.7 million for the three months ended June 30, 2024, compared to $47.3 million for the three months ended June 30, 2023. When comparing the first quarter of 2024 to the first quarter of 2023, the decrease in net interest income of $1.5 million, or 3.26%, was primarily due to an increase in the Corporation's interest expense as a result of targeted interest-bearing deposit rate increases to ensure both deposit relationship retention, and new deposit growth in recently entered expansion markets.

Previous wording

Net interest margin was 3.40% and 3.81% for the three months ended March 31, 2024 and March 31, 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.38% and 3.79%, for the three months ended March 31, 2024 and March 31, 2023, respectively.

Current wording

Net interest margin was 3.36% and 3.62% for the three months ended June 30, 2024 and June 30, 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.34% and 3.60%, for the three months ended June 30, 2024 and June 30, 2023, respectively.

Previous wording

The yield on earning assets of 5.81% for the three months ended March 31, 2024 increased 52 basis points from March 31, 2023, primarily as a result of the net benefit of higher interest rates on both variable-rate loans and new loan production.

Current wording

The yield on earning assets of 5.89% for the three months ended June 30, 2024 increased 39 basis points from June 30, 2023, primarily as a result of the net benefit of higher interest rates on both variable-rate loans and new loan production.

Previous wording

Total non-interest income was $9.0 million for the three months ended March 31, 2024 compared to $8.0 million for the three months ended March 31, 2023. During the three months ended March 31, 2024, notable changes compared to the three months ended March 31, 2023, included higher pass-through income from small business investment companies coupled with an increase in net realized and unrealized gains on equity securities.

Current wording

Total non-interest income was $8.9 million for the three months ended June 30, 2024 compared to $8.3 million for the three months ended June 30, 2023. The increase during the three months ended June 30, 2024, compared to the three months ended June 30, 2023, was primarily due to higher pass-through income from small business investment companies.

Previous wording

For the three months ended March 31, 2024, total non-interest expense was $37.4 million, compared to $34.0 million for the three months ended March 31, 2023. The increase of $3.4 million, or 10.1%, from the three months ended March 31, 2023 was primarily a result of higher salaries and benefits driven by an increase in personnel costs related to merit increases and growth in the Corporation's staff and new offices in its expansion markets, coupled with year-over-year investments in technology applications aimed at enhancing both customer online banking capabilities, customer call center communications and in-branch technology delivery channels. In addition, card processing and interchange expense for the first quarter of 2024 was $1.2 million, or 58.45% of card processing and interchange income, compared to $1.5 million, or 72.37% of card processing and interchange income for the first quarter of 2023.

Current wording

For the three months ended June 30, 2024, total non-interest expense was $36.0 million, compared to $36.0 million for the three months ended June 30, 2023. The increase from the three months ended June 30, 2023 was primarily a result of higher salaries and benefits driven by an increase in personnel costs related to merit increases, coupled with year-over-year investments in technology applications aimed at enhancing both customer online banking capabilities, customer call center communications and in-branch technology delivery channels. In addition, card processing and interchange expense for the second quarter of 2024 was $878 thousand, or 40.15% of card processing and interchange income, compared to $1.6 million, or 76.24% of card processing and interchange income for the second quarter of 2023.

Previous wording

Income tax expense was $2.8 million, representing a 18.36% effective tax rate, compared to $3.9 million, representing a 19.18% effective tax rate for the three months ended March 31, 2024 and 2023, respectively.

Current wording

Income tax expense was $3.0 million, representing a 19.03% effective tax rate, compared to $3.3 million, representing a 19.42% effective tax rate for the three months ended June 30, 2024 and 2023, respectively.

Previous wording

The Corporation’s accounting and reporting policies are in accordance with GAAP and conform to general practices within the financial services industry. Accounting and reporting practices for the allowance for credit losses and the fair value of assets acquired and liabilities assumed in connection with business combinations, including the associated goodwill and intangibles that was recorded, required the use of material estimates. Application of assumptions different than those used by management could result in material changes in the Corporation’s financial position or results of operations. Note 1 (Summary of Significant Accounting Policies) and Note 4 (Loans) of the 2023 Form 10-K provide additional detail with regard to the Corporation’s accounting for the allowance for credit losses and loans receivable. There have been no other significant changes in the application of accounting policies since December 31, 2023.

Current wording

The Corporation’s accounting and reporting policies are in accordance with GAAP and conform to general practices within the financial services industry. Accounting and reporting practices for the allowance for credit losses and the fair value of assets acquired and liabilities assumed in connection with business combinations, including the associated goodwill and intangibles that was recorded, required the use of material estimates. Application of assumptions different than those used by management could result in material changes in the Corporation’s financial position or results of operations. Note 1, "Summary of Significant Accounting Policies" and Note 3, "Loans Receivable and Allowance for Credit Losses" of the 2023 Form 10-K provide additional detail with regard to the Corporation’s accounting for the allowance for credit losses and loans receivable. There have been no other significant changes in the application of accounting policies since December 31, 2023.