-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CDiDtekseIqHB/NLTFI848Knxr+wd7kdY6/+hMj9I5z4O1N5mflMWRXtMqevEcUr Q1Nm4CRugLYHHWXeTdUfZg== 0001181431-09-007607.txt : 20090210 0001181431-09-007607.hdr.sgml : 20090210 20090210140705 ACCESSION NUMBER: 0001181431-09-007607 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20090210 ITEM INFORMATION: Material Impairments FILED AS OF DATE: 20090210 DATE AS OF CHANGE: 20090210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CNB FINANCIAL CORP/PA CENTRAL INDEX KEY: 0000736772 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 251450605 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13396 FILM NUMBER: 09585085 BUSINESS ADDRESS: STREET 1: 1 SOUTH SECOND STREET STREET 2: P.O. BOX 42 CITY: CLEARFIELD STATE: PA ZIP: 16830 BUSINESS PHONE: 8147659621 MAIL ADDRESS: STREET 1: 1 SOUTH SECOND STREET STREET 2: P.O. BOX 42 CITY: CLEARFIELD STATE: PA ZIP: 16830 8-K 1 rrd232514.htm Prepared By R.R. Donnelley Financial -- Form 8-K
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported):  02/10/2009
 
CNB Financial Corporation
(Exact name of registrant as specified in its charter)
 
Commission File Number:  000-13396
 
Pennsylvania
  
25-1450605
(State or other jurisdiction of
  
(IRS Employer
incorporation)
  
Identification No.)
 
1 South Second Street
PO Box 42
Clearfield, Pennsylvania 16830
(Address of principal executive offices, including zip code)
 
814-765-9621
(Registrant’s telephone number, including area code)
 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

 
Item 2.06.    Material Impairments
 
CNB Financial Corporation ("The Corporation"), the holding company for CNB Bank, recorded a non-cash charge in the fourth quarter related to its investment in a pooled trust preferred security.

Trust preferred securities are very long term (usually 30 year maturity) instruments with characteristics of both debt and equity, mainly issued by financial institutions. Some of the Corporation's investments in trust preferred securities are of pooled issues, comprised of debt issued by financial institutions and insurance companies, with lesser amounts being term notes issued by other types of commercial enterprises. Within the Corporation's pooled trust preferred securities are institutions that have elected to defer payment of interest on their obligations, and some institutions have defaulted.

As of December 31, 2008, management evaluated the pooled trust preferred securities for other-than-temporary impairment by estimating the cash flows a market participant would expect to receive from each security, ta king into account estimated levels of deferrals and defaults by the underlying issuers.

For five pooled trust preferred securities, management of the Corporation determined that any declines in fair value below carrying value were not deemed to be other-than-temporarily impaired. However, the Corporation holds a $2.0 million pooled trust preferred security issued by US Capital Funding VI, and management has deemed the decline in fair value of this security to be other than temporary. As a result, a non-cash other-than-temporary impairment charge to earnings of $1.3 million, net of tax, was recorded during the quarter ended December 31, 2008.

Both the Corporation and CNB Bank continue to maintain capital ratios above the "well capitalized" regulatory requirement after this non-cash charge.

 

 

Signature(s)
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
      
 
CNB Financial Corporation
 
 
Date: February 10, 2009
     
By:
 
/s/    Charles R. Guarino
               
Charles R. Guarino
               
Treasurer
 
 
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