10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

F O R M 1 0 – K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2013 Commission File Number 0-13396

CNB FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Pennsylvania	25-1450605
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

1 South Second Street

P.O. Box 42

Clearfield, Pennsylvania 16830

(Address of principal executive office)

Registrant’s telephone number, including area code (814) 765-9621

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, no par value per share	The NASDAQ Stock Market LLC
	(NASDAQ Global Select Market)

Securities registered pursuant to Section 12 (g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

¨  Yes  x  No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

¨  Yes  x  No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x  Yes  ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x  Yes  ¨  No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  ¨ Accelerated filer  x Non-accelerated filer  ¨ Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

¨  Yes  x  No

Aggregate market value of the common stock held by non-affiliates of the registrant as of June 30, 2013:

$198,933,179

The number of shares outstanding of the registrant’s common stock as of March 3, 2014:

14,464,041 shares

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the proxy statement for the annual shareholders’ meeting to be held on April 15, 2014 are incorporated by reference into Part III.

TABLE OF CONTENTS

		Page Number
PART I.
ITEM 1.	Business		1
ITEM 1A.	Risk Factors		17
ITEM 1B.	Unresolved Staff Comments		27
ITEM 2.	Properties		27
ITEM 3.	Legal Proceedings		27
ITEM 4.	Mine Safety Disclosures		27
PART II.
ITEM 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		28
ITEM 6.	Selected Financial Data		31
ITEM 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		32
ITEM 7A.	Quantitative and Qualitative Disclosures about Market Risk		48
ITEM 8.	Financial Statements and Supplementary Data		49
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		108
ITEM 9A.	Controls and Procedures		108
ITEM 9B.	Other Information		110
PART III.
ITEM 10.	Directors, Executive Officers and Corporate Governance		110
ITEM 11.	Executive Compensation		110
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		110
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence		110
ITEM 14.	Principal Accountant Fees and Services		110
PART IV.
ITEM 15.	Exhibits and Financial Statement Schedules		111
SIGNATURES			113

PART I.

ITEM 1.    BUSINESS

CNB Financial Corporation (the “Corporation”) is a financial holding company registered under the Bank Holding Company Act of 1956, as amended. It was incorporated under the laws of the Commonwealth of Pennsylvania in 1983 for the purpose of engaging in the business of a financial holding company. On April 26, 1984, the Corporation acquired all of the outstanding capital stock of County National Bank, a national banking chartered institution. In December 2006, County National Bank changed its name to CNB Bank, referred to herein as the Bank, and became a state bank chartered in Pennsylvania and subject to regulation by the Pennsylvania Department of Banking and the Federal Deposit Insurance Corporation. In October 2013, the Corporation acquired FC Banc Corp. and its subsidiary, The Farmers Citizens Bank.

In addition to the Bank, the Corporation has four other subsidiaries. CNB Securities Corporation is incorporated in Delaware and currently maintains investments in debt and equity securities. County Reinsurance Company is an Arizona corporation and provides credit life and disability insurance for customers of CNB Bank. CNB Insurance Agency, incorporated in Pennsylvania, provides for the sale of nonproprietary annuities and other insurance products. Holiday Financial Services Corporation, incorporated in Pennsylvania, offers small balance unsecured loans and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics.

CNB Bank

CNB Bank (the “Bank”) was incorporated in 1934 and is chartered in the Commonwealth of Pennsylvania. ERIEBANK, a division of CNB Bank, began operations in 2005. In October 2013, the Corporation completed its previously announced acquisition of FC Banc Corp. and its subsidiary, Farmers Citizens Bank. Farmers Citizens Bank served the central Ohio markets of Bucyrus, Cardington, Fredericktown, Mount Hope and Shiloh, as well as the markets of Worthington and Upper Arlington in the greater Columbus, Ohio area, with 8 branch locations. The Corporation is continuing to operate these 8 branch locations as FCBank, a division of CNB Bank, with local decision making and oversight.

The Bank has 37 full service branch offices and one loan production office located in various communities in its market area. CNB Bank’s primary market area includes the Pennsylvania counties of Cambria, Cameron, Centre, Clearfield, Crawford, Elk, Indiana, Jefferson, and McKean. As ERIEBANK, a division of CNB Bank, the Bank operates in the Pennsylvania counties of Crawford, Erie, and Warren. As FCBank, a division of CNB Bank, the Bank operates in the Ohio counties of Crawford, Richland, Ashland, Wayne, Marion, Morrow, Knox, Holmes, Delaware, and Franklin.

The Bank is a full service bank engaging in a full range of banking activities and services for individual, business, governmental and institutional customers. These activities and services principally include checking, savings, and time deposit accounts; real estate, commercial, industrial, residential and consumer loans; and a variety of other specialized financial services. The Bank’s Wealth & Asset Management Services division offers a full range of client services.

Holiday Financial Services Corporation

In 2005, the Corporation entered the consumer discount loan and finance business, which is conducted through a wholly owned subsidiary, Holiday Financial Services Corporation. Holiday currently has

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eleven offices within the Corporation’s footprint. Management believes that it has made the necessary investments in experienced personnel and technology which has helped facilitate the growth of Holiday into a successful and profitable subsidiary.

Competition

The financial services industry in the Corporation’s service area continues to be extremely competitive, both among commercial banks and with other financial service providers such as consumer finance companies, thrifts, investment firms, mutual funds and credit unions. The increased competition has resulted from changes in the legal and regulatory guidelines as well as from economic conditions. Mortgage banking firms, leasing companies, financial affiliates of industrial companies, brokerage firms, retirement fund management firms, and even government agencies provide additional competition for loans and other financial services. Some of the financial service providers operating in the Corporation’s market area operate on a large-scale regional or national basis and possess resources greater than those of the Corporation. The Corporation is generally competitive with all competing financial institutions in its service area with respect to interest rates paid on time and savings deposits, service charges on deposit accounts and interest rates charged on loans.

Supervision and Regulation

The Corporation is a bank holding company and a financial holding company and the Bank is a Pennsylvania state-chartered bank that is not a member of the Board of Governors of the Federal Reserve System (Federal Reserve Board). Accordingly, the Corporation is subject to the oversight of the Federal Reserve Board and the Pennsylvania Department of Banking, and the Bank is subject to the oversight of the Pennsylvania Department of Banking and Federal Deposit Insurance Corporation (“FDIC”). The Corporation and Bank are also subject to various requirements and restrictions under federal and state law, such as requirements to maintain reserves against deposits, restrictions on the types, amounts and terms and conditions of loans that may be granted, and limitations on the types of investments that may be made and the types of services that may be offered. Various consumer financial protection laws and regulations also affect the operation of the Bank and, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Bureau of Consumer Financial Protection (“CFPB”) is authorized to write rules on consumer financial products which could affect the operations of the Bank. In addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve Board, including actions taken with respect to interest rates, as the Federal Reserve Board attempts to control the money supply and credit availability in the U.S. in order to influence the economy.

The following summary sets forth certain of the material elements of the regulatory framework applicable to bank holding companies and their subsidiaries and provides certain specific information about us and our subsidiaries. It does not describe all of the provisions of the statutes, regulations and policies that are identified. To the extent that the following information describes statutory and regulatory provisions, it is qualified in its entirety by express reference to each of the particular statutory and regulatory provisions. A change in applicable statutes, regulations or regulatory policy may have a material effect on our business.

Bank Holding Company Regulation

As a bank holding company, the Corporation is subject to regulation and examination by the Pennsylvania Department of Banking and the Federal Reserve Board. We are required to file with the

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Federal Reserve Board an annual report and such additional information as the Federal Reserve Board may require pursuant to the Bank Holding Company Act of 1956, as amended (the “BHC Act”), and applicable regulations. For instance, the BHC Act requires each bank holding company to obtain the approval of the Federal Reserve Board before it may acquire substantially all the assets of any bank, or before it may acquire ownership or control of any voting shares of any bank if, after such acquisition, it would own or control, directly or indirectly, more than five percent of any class of voting shares of such bank. Such a transaction may also require approval of the Pennsylvania Department of Banking.

Pursuant to provisions of the BHC Act and regulations promulgated by the Federal Reserve Board thereunder, the Corporation may only engage in, or own companies that engage in, activities deemed by the Federal Reserve Board to be permissible for bank holding companies or financial holding companies. Activities permissible for bank holding companies are those that are so closely related to the business of banking or managing or controlling banks as to be a proper incident thereto. Permissible activities for financial holding companies include those “so closely related to banking” as well as certain additional activities deemed “financial in nature.” The Corporation must obtain permission from or provide notice to the Federal Reserve Board prior to engaging in most new business activities.

Under Federal Reserve Board regulations, a bank holding company is required to serve as a source of financial and managerial strength to its subsidiary banks and may not conduct its operations in an unsafe or unsound manner. In addition, it is the Federal Reserve Board’s policy that in serving as a source of strength to its subsidiary banks, a bank holding company should stand ready to use available resources to provide adequate capital funds to its subsidiary banks during periods of financial stress or adversity and should maintain the financial flexibility and capital-raising capacity to obtain additional resources for assisting its subsidiary banks. A bank holding company’s failure to meet its obligations to serve as a source of strength to its subsidiary banks will generally be considered by the Federal Reserve Board to be an unsafe and unsound banking practice or a violation of the Federal Reserve Board regulations or both. This doctrine is commonly known as the “source of strength” doctrine.

The Federal Reserve has adopted risk-based capital guidelines for bank holding companies. Currently, the required minimum ratio of total capital to risk-weighted assets (including off-balance sheet activities, such as standby letters of credit) is 8%. At least half of the total capital is required to be Tier 1 capital, consisting principally of common shareholders’ equity, non-cumulative perpetual preferred stock, a limited amount of cumulative perpetual preferred stock and minority interests in the equity accounts of consolidated subsidiaries, less goodwill. The remainder (Tier 2 capital) may consist of a limited amount of subordinated debt and intermediate-term preferred stock, certain hybrid capital instruments and other debt securities, perpetual preferred stock and a limited amount of the general loan loss allowance.

In addition to the risk-based capital guidelines, the Federal Reserve has established minimum leverage ratio (Tier 1 capital to total assets) guidelines for bank holding companies. These guidelines provide for a minimum leverage ratio of 3% for those bank holding companies which have the highest regulatory examination ratings and are not contemplating or experiencing significant growth or expansion. All other bank holding companies are required to maintain a leverage ratio of at least 4%.

In May 2013, the Securities and Exchange Commission and the Commodity Futures Trading Commission (together, the “Commissions”) jointly issued final rules and guidelines to require certain regulated entities to establish programs to address risks of identity theft. The rules and guidelines

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implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. These provisions amend Section 615(e) of the Fair Credit Reporting Act and directed the Commissions to adopt rules requiring entities that are subject to the Commissions’ jurisdiction to address identity theft in two ways. First, the rules require financial institutions and creditors to develop and implement a written identity theft prevention program that is designed to detect, prevent, and mitigate identity theft in connection with certain existing accounts or the opening of new accounts. The rules include guidelines to assist entities in the formulation and maintenance of programs that would satisfy the requirements of the rules. Second, the rules establish special requirements for any credit and debit card issuers that are subject to the Commissions’ jurisdiction, to assess the validity of notifications of changes of address under certain circumstances.

On July 2, 2013, the Federal Reserve Board issued final rules, and on July 9, 2013, the FDIC issued interim final rules that revise existing regulatory capital requirements to incorporate certain revisions to the Basel capital framework, including Basel III, and to implement certain provisions of the Dodd-Frank Act. The final rules seek to strengthen the components of regulatory capital, increase risk-based capital requirements, and make selected changes to the calculation of risk-weighted assets. The final rules, among other things:

• revise minimum capital requirements and adjust prompt corrective action thresholds;

• revise the components of regulatory capital, add a new minimum common equity Tier 1 capital ratio of 4.5% of risk-weighted assets, increase the minimum Tier 1 capital ratio requirement from 4% to 6%;

• retain the existing risk-based capital treatment for 1-4 family residential mortgage exposures;

• permit most banking organizations, including the Corporation, to retain, through a one-time permanent election, the existing capital treatment for accumulated other comprehensive income;

• implement a new capital conservation buffer of common equity Tier 1 capital equal to 2.5% of risk-weighted assets, which will be in addition to the 4.5% common equity Tier 1 capital ratio and be phased in over a three year period beginning January 1, 2016 which buffer is generally required to make capital distributions and pay executive bonuses;

• increase capital requirements for past-due loans, high volatility commercial real estate exposures, and certain short-term loan commitments;

• require the deduction of mortgage servicing assets and deferred tax assets that exceed 10% of common equity Tier 1 capital in each category and 15% of common equity Tier 1 capital in the aggregate; and

• remove references to credit ratings consistent with Dodd-Frank and establish due diligence requirements for securitization exposures.

Under the interim and final rules, compliance is required beginning January 1, 2015, for most banking organizations including the Corporation, subject to a transition period for several aspects of the final rules, including the new minimum capital ratio requirements, the capital conservation buffer, and the regulatory capital adjustments and deductions. We are still in the process of assessing the impacts of these complex final and interim final rules; however, we believe we will continue to exceed all estimated well-capitalized regulatory requirements on a fully phased-in basis.

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Regulation of CNB Bank

CNB Bank is a Pennsylvania-chartered bank and is subject to regulation, supervision and regular examination by the Pennsylvania Department of Banking and the FDIC. Federal and state banking laws and regulations govern, among other things, the scope of a bank’s business, the investments a bank may make, the reserves against deposits a bank must maintain, the loans a bank makes and collateral it takes, the activities of a bank with respect to mergers and acquisitions, the establishment of branches, management practices, and numerous other aspects of banking operations.

Legislation

The Dodd-Frank Act, enacted into law on July 21, 2010, includes numerous provisions designed to strengthen the financial industry, enhance consumer financial protection, expand disclosures and provide for transparency, and significantly changed the bank regulatory structure and affected and will continue to affect the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies. The Dodd-Frank Act also created a CFPB, which is authorized to write rules on a number of consumer financial products, and a Financial Services Oversight Council, which is empowered to determine which entities are systematically significant and require tougher regulations.

It is difficult to predict at this time what specific impact certain provisions of the Dodd-Frank Act and the implementing rules and regulations, many which have yet to be written, will have on the Corporation, including any regulations promulgated by the CFPB. The legislation and any implementing rules that are ultimately issued could have adverse implications on the financial industry, the competitive environment, and the Corporation’s ability to conduct business. The Corporation will have to apply resources to ensure that it is in compliance with all applicable provisions of the Dodd-Frank Act and any implementing rules, which may increase its costs of operations and adversely impact its earnings.

Dividend Restrictions

The Corporation is a legal entity separate and distinct from the Bank. Declaration and payment of cash dividends depends upon cash dividend payments to the Corporation by the Bank, which is our primary source of revenue and cash flow. Accordingly, the right of the Corporation, and consequently the right of our creditors and shareholders, to participate in any distribution of the assets or earnings of any subsidiary is necessarily subject to the prior claims of creditors of the subsidiary, except to the extent that claims of the Corporation in its capacity as a creditor may be recognized.

As a Pennsylvania state-chartered bank, the Bank is subject to regulatory restrictions on the payment and amounts of dividends under the Pennsylvania Banking Code. Further, the ability of banking subsidiaries to pay dividends is also subject to their profitability, financial condition, capital expenditures and other cash flow requirements.

The payment of dividends by the Bank and the Corporation may also be affected by other factors, such as the requirement to maintain adequate capital above regulatory guidelines. The federal banking agencies have indicated that paying dividends that deplete a depository institution’s capital base to an inadequate level would be an unsafe and unsound banking practice. A depository institution may not pay any dividend if payment would cause it to become undercapitalized or if it already is undercapitalized. Moreover, the federal agencies have issued policy statements that provide that bank

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holding companies and insured banks should generally only pay dividends out of current operating earnings. Federal banking regulators have the authority to prohibit banks and bank holding companies from paying a dividend if the regulators deem such payment to be an unsafe or unsound practice.

Capital Adequacy and Operations

Under applicable “prompt corrective action” (“PCA”) statutes and regulations, depository institutions are placed into one of five capital categories, ranging from “well capitalized” to “critically undercapitalized.” The FDIC, in the case of the Bank, is required to take certain, and is authorized to take other, supervisory action against a depository institution that falls below certain of these levels. The PCA statute and regulations provide for progressively more stringent supervisory measures as a depository institution’s capital category declines. An institution that is not well capitalized is generally prohibited from accepting brokered deposits and offering interest rates on deposits higher than the prevailing rate in its market. An undercapitalized depository institution must submit an acceptable capital restoration plan to the appropriate federal bank regulatory agency. One requisite element of such a plan is that the institution’s parent holding company must guarantee compliance by the institution with the plan, subject to certain limitations.

At December 31, 2013, the Bank qualified as “well capitalized” under applicable regulatory capital standards.

Community Reinvestment Act

Under the Community Reinvestment Act of 1977 (“CRA”), the FDIC is required to assess the record of all financial institutions regulated by it to determine if these institutions are meeting the credit needs of the community (including low and moderate income neighborhoods) which they serve. CRA performance evaluations are based on a four-tiered rating system: Outstanding, Satisfactory, Needs to Improve and Substantial Noncompliance. CRA performance evaluations are considered in evaluating applications for such things as mergers, acquisitions and applications to open branches. The Bank received a CRA rating of “Satisfactory” at its most current CRA exam.

Restrictions on Transactions with Affiliates and Insiders

The Bank and Corporation also are subject to the restrictions of Sections 23A and 23B of the Federal Reserve Act, and their implementing Regulation W, issued by the Federal Reserve Board. Section 23A requires that loans or extensions of credit by the Bank to an affiliate, purchases of securities by the Bank issued by an affiliate, purchases of assets by the Bank from an affiliate (except as may be exempted by order or regulation), the acceptance by the Bank of securities issued by an affiliate as collateral and the issuance by the Bank of a guarantee, acceptance by the Bank of letters of credit on behalf of an affiliate (collectively, “Covered Transactions”) be on terms and conditions consistent with safe and sound banking practices. Section 23A also imposes quantitative restrictions on the amount of and collateralization requirements on such transactions. Section 23B requires that all Covered Transactions and certain other transactions, including the sale of securities or other assets by the Bank to an affiliate and the payment of money or the furnishing of services by the Bank to an affiliate, be on terms comparable to those prevailing for similar transactions with non-affiliates.

The Bank is also subject to Sections 22(g) and 22(h) of the Federal Reserve Act, and their implementing Regulation O issued by the Federal Reserve Board. These provisions impose limitations on loans and extensions of credit by the Bank to its executive officers, directors and principal

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shareholders and their related interests as well as to the Corporation and any subsidiary of the Corporation. The limitations restrict the terms and aggregate amount of such transactions. Regulation O also imposes certain recordkeeping and reporting requirements.

Deposit Insurance and Premiums

The deposits of the Bank are insured up to applicable limits per insured depositor by the FDIC. The Dodd-Frank Act has permanently increased the standard maximum deposit insurance amount to $250,000 per depositor per insured depository institution, retroactive to January 1, 2008, and qualifying non-interest bearing transaction accounts had unlimited deposit insurance through December 31, 2012.

The Dodd-Frank Act also broadens the base for FDIC insurance assessments. Assessments will now be based on the average consolidated total assets less tangible equity capital of a financial institution.

Other Federal Laws and Regulations

State usury and other credit laws limit the amount of interest and various other charges collected or contracted by a bank on loans. The Bank is also subject to lending limits on loans to one borrower and regulatory guidance on concentrations of credit. The Bank’s loans and other products and services are also subject to numerous federal and state consumer financial protection laws, including, but not limited to, the following:

• Truth-In-Lending Act, which governs disclosures of credit terms to consumer borrowers;

• Truth-in-Savings Act, which governs disclosures of the terms of deposit accounts to consumers;

• Home Mortgage Disclosure Act, requiring financial institutions to provide information to regulators to enable determinations as to whether financial institutions are fulfilling their obligations to meet the home lending needs of the communities they serve and not discriminating in their lending practices;

• Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, gender or other prohibited factors in extending credit;

• Real Estate Settlement Procedures Act, which imposes requirements relating to real estate settlements, including requiring lenders to disclose certain information regarding the nature and cost of real estate settlement services;

• Fair Credit Reporting Act, covering numerous areas relating to certain types of consumer information and identity theft;

• Privacy provisions of the Gramm-Leach-Bliley Act and related regulations, which require that financial institutions provide privacy policies to consumers, to allow customers to “opt out” of certain sharing of their nonpublic personal information, and to safeguard sensitive and confidential customer information.

• Electronic Fund Transfer Act, which is a consumer protection law regarding electronic fund transfers;

• The Bank Secrecy Act and USA Patriot Act, which require financial institutions to take certain actions to help prevent, detect and prosecute money laundering and the financing of terrorism; and

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• Numerous other federal and state laws and regulations, including those related to consumer protection and bank operations.

Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 was enacted on July 30, 2002 and represented a comprehensive revision of laws affecting corporate governance, accounting obligations and corporate reporting. The Sarbanes- Oxley Act is applicable to all companies with equity securities registered or that file reports under the Securities Exchange Act of 1934, as amended, including publicly-held financial holding companies such as the Corporation. In particular, the Sarbanes-Oxley Act establishes: (i) requirements for audit committees, including independence, expertise, and responsibilities; (ii) additional responsibilities regarding financial statements for the Chief Executive Officer and Chief Financial Officer of the reporting company; (iii) standards for auditors and regulation of audits; (iv) increased disclosure and reporting obligations for the reporting company and its directors and executive officers; and (v) new and increased civil and criminal penalties for violations of the securities laws. Many of the provisions were effective immediately while other provisions became effective over a period of time and are subject to rulemaking by the SEC.

Governmental Policies

Our earnings are significantly affected by the monetary and fiscal policies of governmental authorities, including the Federal Reserve Board. Among the instruments of monetary policy used by the Federal Reserve Board to implement these objectives are open-market operations in U.S. Government securities and federal funds, changes in the discount rate on member bank borrowings and changes in reserve requirements against member bank deposits. These instruments of monetary policy are used in varying combinations to influence the overall level of bank loans, investments and deposits, and the interest rates charged on loans and paid for deposits. The Federal Reserve Board frequently uses these instruments of monetary policy, especially its open-market operations and the discount rate, to influence the level of interest rates and to affect the strength of the economy, the level of inflation or the price of the dollar in foreign exchange markets. The monetary policies of the Federal Reserve Board have had a significant effect on the operating results of banking institutions in the past and are expected to continue to do so in the future. It is not possible to predict the nature of future changes in monetary and fiscal policies, or the effect which they may have on our business and earnings.

Other Legislative Initiatives

Proposals may be introduced in the United States Congress, in the Pennsylvania Legislature, and/or by various bank regulatory authorities that could alter the powers of, and restrictions on, different types of banking organizations and which could restructure part or all of the existing regulatory framework for banks, bank and financial holding companies and other providers of financial services. Moreover, other bills may be introduced in Congress which would further regulate, deregulate or restructure the financial services industry, including proposals to substantially reform the regulatory framework. It is not possible to predict whether these or any other proposals will be enacted into law or, even if enacted, the effect which they may have on our business and earnings.

Employees

As of December 31, 2013, the Corporation had a total of 395 employees of which 359 were full time and 36 were part time.

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Executive Officers

The Corporation’s executive officers, their ages, and their principal occupations are as follows:

Name	Age	Principal Occupation
Joseph B. Bower, Jr.	50	President and Chief Executive Officer, CNB Bank and CNB Financial Corporation, since January 1, 2010; and previously, Secretary, CNB Financial Corporation and Executive Vice President and Chief Operating Officer, CNB Bank.
Richard L. Greslick, Jr.	37	Executive Vice President/Chief Operating Officer, CNB Bank since December 2012 and Secretary, CNB Financial Corporation, since July 2010; previously, Senior Vice President/Administration since July 2010; Vice President/Operations since 2007; and previously Controller, CNB Bank and CNB Financial Corporation.
Mark D. Breakey	55	Executive Vice President and Chief Credit Officer, CNB Bank.
Joseph E. Dell, Jr.	57	Senior Vice President and Chief Lending Officer, CNB Bank since December 31, 2013; previously, Senior Vice President and Senior Commercial Lending Officer since February 2013; previously, Chief Lending Officer and Commercial Line of Business Manager for First Security Group, Inc. and FSG Bank, N.A. from 2011 to February 2013; and previously served in various executive level positions with First Commonwealth Bank, including Chief Lending Officer and Commercial Line of Business Leader since 2008.
Vincent C. Turiano	63	Senior Vice President/Operations, CNB Bank, since November 25, 2009; previously Financial Consultant for RBC Wealth Management (formerly Ferris, Baker Watts, Inc.) since 2006; and previously Executive Vice President of Omega Bank and Omega Financial Corporation.
Brian W. Wingard	39	Treasurer, Principal Financial Officer and Principal Accounting Officer, CNB Financial Corporation, since March 2012; Senior Vice President/Chief Financial Officer, CNB Bank, since March 2012; previously Controller, CNB Bank and CNB Financial Corporation, since 2007; and previously a Certified Public Accountant in public practice.

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Officers are elected annually at the reorganization meeting of the Board of Directors. There are no arrangements or understandings between any officer and any other persons pursuant to which he was selected as an officer.

Available Information

The Corporation makes available free of charge on its website (www.bankcnb.com) its Annual Report on Form 10-K, its quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as practicable after it electronically files such material with, or furnishes it to, the Securities and Exchange Commission, the SEC. Information on the Corporation’s website is not incorporated by reference into this report.

Shareholders may obtain a copy of the Corporation’s Annual Report on Form 10-K free of charge by writing to: CNB Financial Corporation, 1 South Second Street, PO Box 42, Clearfield, PA 16830, Attn: Shareholder Relations.

Interested persons may also read and copy materials the Corporation files with, or furnishes to, the SEC at the SEC’s Public Reference Room at 100 F Street, NE Washington, DC 20549. Information concerning the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. The SEC also maintains an internet site that contains reports, proxy statements and other information about electronic filers such as the Corporation. The site is available at http://www.sec.gov.

Statistical Disclosure

The following tables set forth statistical information relating to the Corporation and its wholly owned subsidiaries. The tables should be read in conjunction with the consolidated financial statements of the Corporation.

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Average Balances and Net Interest Margin

(Dollars in thousands)

	December 31, 2013								December 31, 2012								December 31, 2011
	Average Balance			Annual Rate			Interest Inc./ Exp.		Average Balance			Annual Rate			Interest Inc./ Exp.		Average Balance			Annual Rate			Interest Inc./ Exp.
Assets
Securities:
Taxable (1)	$	607,224			2.25	%	$	13,456	$	605,974			2.51	%	$	14,688	$	499,221			2.92	%	$	14,395
Tax-Exempt (1, 2)		129,858			4.52	%		5,743		115,634			4.89	%		5,344		86,851			5.14	%		4,366
Equity Securities (1, 2)		3,262			8.49	%		277		2,843			4.08	%		116		1,906			2.49	%		47
Total Securities		740,344			2.67	%		19,476		724,451			2.89	%		20,148		587,978			3.31	%		18,808
Loans
Commercial (2)		311,914			4.86	%		15,151		296,465			4.96	%		14,718		275,442			5.20	%		14,329
Mortgage (2)		675,408			4.77	%		32,215		546,374			5.29	%		28,919		492,922			5.68	%		28,015
Consumer		65,107			10.93	%		7,119		50,069			13.27	%		6,642		51,402			12.72	%		6,536
Total Loans (3)		1,052,429			5.18	%		54,485		892,908			5.63	%		50,279		819,766			5.96	%		48,880
Total earning assets		1,792,773			4.15	%	$	73,961		1,617,359			4.42	%	$	70,427		1,407,744			4.84	%	$	67,688
Non Interest Earning Assets
Cash & Due From Banks		26,710								30,275								33,846
Premises & Equipment		26,475								24,114								24,323
Other Assets		64,399								55,851								56,616
Allowance for Loan Losses		(15,496	)							(13,424	)							(11,750	)
Total Non Interest Earning Assets		102,088								96,816								103,035
Total Assets	$	1,894,861							$	1,714,175							$	1,510,779
Liabilities and Shareholders’ Equity
Interest-Bearing Deposits
Demand – interest-bearing	$	388,237			0.38	%	$	1,468	$	313,673			0.50	%	$	1,559	$	296,440			0.77	%	$	2,287
Savings		819,774			0.47	%		3,885		738,023			0.76	%		5,595		501,475			1.09	%		5,489
Time		219,791			1.20	%		2,642		229,694			1.62	%		3,721		320,704			1.82	%		5,849
Total interest – bearing deposits		1,427,802			0.56	%		7,995		1,281,390			0.85	%		10,875		1,118,619			1.22	%		13,625
Short-term borrowings		21,602			0.19	%		40		9,402			0.15	%		14		9,728			0.28	%		27
Long-term borrowings		75,018			4.54	%		3,407		74,370			4.34	%		3,231		74,141			4.25	%		3,149
Subordinated Debentures		20,620			3.73	%		770		20,620			3.88	%		800		20,620			3.77	%		778
Total interest-bearing liabilities		1,545,042			0.79	%	$	12,212		1,385,782			1.08	%	$	14,920		1,223,108			1.44	%	$	17,579
Demand – non-interest-bearing		186,180								164,368								148,287
Other liabilities		17,076								23,174								17,173
Total Liabilities		1,748,298								1,573,324								1,388,568
Shareholders’ Equity		146,563								140,851								122,211
Total Liabilities and Shareholders’ Equity	$	1,894,861							$	1,714,175							$	1,510,779
Interest Income/Earning Assets					4.15	%	$	73,961					4.42	%	$	70,427					4.84	%	$	67,688
Interest Expense/Interest Bearing Liabilities					0.79	%		12,212					1.08	%		14,920					1.44	%		17,579
Net Interest Spread					3.36	%	$	61,749					3.34	%	$	55,507					3.40	%	$	50,109
Interest Income/Earning Assets					4.15	%	$	73,961					4.42	%	$	70,427					4.84	%	$	67,688
Interest Expense/Earning Assets					0.68	%		12,212					0.92	%		14,920					1.25	%		17,579
Net Interest Margin					3.47	%	$	61,749					3.49	%	$	55,507					3.59	%	$	50,109

1. Includes unamortized discounts and premiums. Average balance is computed using the amortized cost of securities. The average yield has been computed using the historical amortized cost average balance for available for sale securities.

2. Average yields and interest income are stated on a fully taxable equivalent basis using the Corporation’s marginal federal income tax rate of 35%. Interest income has been increased by $2,544, $2,298, and $1,976 for the years ended December 31, 2013, 2012, and 2011, respectively, as a result of the effect of tax-exempt interest and dividends earned by the Corporation.

3. Average outstanding includes the average balance outstanding of all non-accrual loans. Loans consist of the average of total loans less average unearned income. Included in loan interest income is loan fees of $1,732, $1,636, and $1,567 for the years ended December 31, 2013, 2012, and 2011, respectively.

11

Net Interest Income Rate-Volume Variance (Dollars in thousands)	For Twelve Months Ended December 31, 2013 over (under) 2012 Due to Change In (1)									For Twelve Months Ended December 31, 2012 over (under) 2011 Due to Change In (1)
	Volume			Rate			Net			Volume			Rate			Net
Assets
Securities:
Taxable	$	347		$	(1,579	)	$	(1,232	)	$	3,097		$	(2,804	)	$	293
Tax-Exempt (2)		879			(480	)		399			1,267			(289	)		978
Equity Securities (2)		17			144			161			24			45			69
Total Securities		1,243			(1,915	)		(672	)		4,388			(3,048	)		1,340
Loans
Commercial (2)		759			(326	)		433			1,094			(705	)		389
Mortgage (2)		6,828			(3,532	)		3,296			3,038			(2,134	)		904
Consumer		1,998			(1,521	)		477			(169	)		275			106
Total Loans		9,585			(5,379	)		4,206			3,963			(2,564	)		1,399
Total Earning Assets	$	10,828		$	(7,294	)	$	3,534		$	8,351		$	(5,612	)	$	2,739
Liabilities and Shareholders’ Equity
Interest-Bearing Deposits
Demand – Interest-Bearing	$	363		$	(454	)	$	(91	)	$	133		$	(861	)	$	(728	)
Savings		652			(2,362	)		(1,710	)		2,589			(2,483	)		106
Time		(156	)		(923	)		(1,079	)		(1,660	)		(468	)		(2,128	)
Total Interest-Bearing Deposits		859			(3,739	)		(2,880	)		1,062			(3,812	)		(2,750	)
Short-Term Borrowings		17			9			26			(1	)		(12	)		(13	)
Long-Term Borrowings		29			147			176			10			72			82
Subordinated debentures		-			(30	)		(30	)		-			22			22
Total Interest-Bearing Liabilities	$	905		$	(3,613	)	$	(2,708	)	$	1,071		$	(3,730	)	$	(2,659	)
Change in Net Interest Income	$	9,923		$	(3,681	)	$	6,242		$	7,280		$	(1,882	)	$	5,398

1. The change in interest due to both volume and rate have been allocated entirely to volume changes.

2. Changes in interest income on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 35%.

12

Securities

(Dollars In Thousands)	December 31, 2013								December 31, 2012								December 31, 2011
	Amortized Cost		Unrealized				Market Value		Amortized Cost		Unrealized				Market Value		Amortized Cost		Unrealized				Market Value
			Gains		Losses						Gains		Losses						Gains		Losses
Securities Available for Sale
U.S. Treasury		$        -		$        -		$        -		$        -		$4,018		$18		$        -		$4,036		$8,064		$66		$        -		$8,130
U.S. Government Sponsored
Entities		185,205		2,894		(6,474)		181,625		157,965		5,977		(161)		163,781		102,258		5,249		(15)		107,492
State and Political Subdivisions		176,490		3,770		(2,317)		177,943		170,223		11,113		(57)		181,279		149,685		8,844		(92)		158,437
Residential and multi-family mortgage		248,017		2,410		(7,820)		242,607		308,800		8,724		(702)		316,822		292,297		8,043		(214)		300,126
Commercial mortgage		385		-		(11)		374		1,275		29		-		1,304		2,077		45		-		2,122
Corporate notes and bonds		15,744		65		(1,734)		14,075		17,368		26		(2,370)		15,024		17,358		50		(3,548)		13,860
Pooled trust preferred		800		-		(139)		661		800		-		(200)		600		800		-		(460)		340
Pooled SBA		70,077		688		(3,044)		67,721		50,667		2,277		(17)		52,927		44,851		1,282		(77)		46,056
Other securities		1,020		-		(35)		985		1,521		17		-		1,538		1,521		23		-		1,544
		$697,738		$9,827		$(21,574)		$685,991		$712,637		$28,181		$(3,507)		$737,311		$618,911		$23,602		$(4,406)		$638,107

Maturity Distribution of Investment Securities

(Dollars In Thousands)

December 31, 2013

	Within One Year		After One But Within Five Years						After Five But Within Ten Years				After Ten Years				Pooled SBA, Residential and Multi- Family Mortgage and Commercial Mortgage
	$ Amt.		Yield		$ Amt.		Yield		$ Amt.		Yield		$ Amt.		Yield		$ Amt.		Yield
Securities Available for Sale
U.S. Treasury	$	-
U.S. Government Sponsored Entities		24,326		1.20%		79,486		1.52%		$77,813		2.37%
State and Political Subdivisions		6,576		4.65%		58,552		3.68%		83,435		4.68%		$29,380		5.36%
Corporate notes and bonds						3,372		2.04%		2,989		3.24%		7,714		1.57%
Pooled trust preferred														661		6.35%
Pooled SBA																		$67,721		2.66%
Residential and multi-family mortgage																		242,607		2.35%
Commercial mortgage																		374		4.70%
TOTAL		$30,902		1.94%		$141,410		2.43%		$164,237		3.56%		$37,755		4.60%		$310,702		2.42%

The weighted average yields are based on market value and effective yields weighted for the scheduled maturity with tax-exempt securities adjusted to a taxable-equivalent basis using a tax rate of 35%.

The portfolio contains no holdings of a single issuer that exceeds 10% of shareholders’ equity other than the US Treasury and governmental sponsored entities.

13

LOAN PORTFOLIO

(Dollars in thousands)

A. TYPE OF LOAN

	2013		2012		2011		2010		2009
Commercial, industrial and agricultural	$	291,704	$	257,091	$	253,324	$	257,491	$	239,966
Commercial mortgages		467,292		261,791		242,511		212,878		193,632
Residential real estate		471,298		347,904		298,628		266,604		226,931
Consumer		63,491		58,668		53,471		51,966		53,542
Credit cards		5,065		4,800		4,412		4,106		3,560
Overdrafts		409		971		423		3,964		391
Gross loans		1,299,259		931,225		852,769		797,009		718,022
Less: unearned income		3,896		3,401		2,886		2,447		2,880
Total loans net of unearned	$	1,295,363	$	927,824	$	849,883	$	794,562	$	715,142

B. LOAN MATURITIES AND INTEREST SENSITIVITY

	December 31, 2013
	One Year or Less		One Through Five Years		Over Five Years		Total Gross Loans
Commercial, industrial and agricultural
Loans With Fixed Interest Rate	$	99,704	$	80,432	$	21,710	$	201,846
Loans With Floating Interest Rate		15,282		35,869		38,707		89,858
	$	114,986	$	116,301	$	60,417	$	291,704

C. RISK ELEMENTS

	2013		2012		2011		2010		2009
Loans on non-accrual basis	$	11,573	$	14,445	$	16,567	$	11,926	$	12,757
Accruing loans which are contractually past due 90 days or more as to interest or principal payment		344		357		441		889		584
Performing troubled debt restructurings		8,006		9,961		7,688		1,714		-
	$	19,923	$	24,763	$	24,696	$	14,529	$	13,341

Interest income recorded on the non-accrual loans for the year ended December 31, 2013 was $17. Additional interest income which would have been recorded on non-accrual loans had they been on accrual status was $604 for the year ended December 31, 2013.

Loans are placed in non-accrual status when the interest or principal is 90 days past due, unless the loan is in collection, well secured and it is believed that there will be no loss of interest or principal.

14

At December 31, 2013, there were $22,132 in special mention loans, $64,254 in substandard loans, and $866 in doubtful loans which are considered problem loans. These loans are not included in the table above. In the opinion of management, these loans are adequately secured and losses are believed to be minimal.

SUMMARY OF LOAN LOSS EXPERIENCE

(Dollars in Thousands)

Analysis of the Allowance for Loan Losses
Years Ended December 31,	2013			2012			2011			2010			2009
Balance at beginning of Period	$	14,060		$	12,615		$	10,820		$	9,795		$	8,719
Charge-Offs:
Commercial, industrial and agricultural		958			2,871			1,796			543			860
Commercial mortgages		1,931			401			175			2,061			381
Residential real estate		467			304			217			211			378
Consumer		1,919			1,279			907			1,223			1,622
Credit cards		97			78			39			94			101
Overdrafts		258			257			222			239			269
		5,630			5,190			3,356			4,371			3,611
Recoveries:
Commercial, industrial and agricultural		7			45			9			11			2
Commercial mortgages		1,430			-			-			3			-
Residential real estate		5			1			13			2			1
Consumer		114			91			88			100			62
Credit cards		16			18			10			10			13
Overdrafts		94			99			94			112			144
		1,666			254			214			238			222
Net charge-offs		(3,964	)		(4,936	)		(3,142	)		(4,133	)		(3,389	)
Provision for loan losses		6,138			6,381			4,937			5,158			4,465
Balance at end of period	$	16,234		$	14,060		$	12,615		$	10,820		$	9,795
Percentage of net charge-offs during the period to average loans outstanding		0.38	%		0.55	%		0.38	%		0.56	%		0.49	%

The provision for loan losses reflects the amount deemed appropriate by management to establish an adequate reserve to meet the present and foreseeable risk characteristics of the present loan portfolio. Management’s judgment is based on the evaluation of individual loans, the overall risk characteristics of various portfolio segments, past experience with losses, the impact of economic conditions on borrowers, and other relevant factors.

15

ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES

(Dollars In Thousands)

	2013					2012					2011					2010					2009
	Amount		% of Loans in each Category			Amount		% of Loans in each Category			Amount		% of Loans in each Category			Amount		% of Loans in each Category			Amount		% of Loans in each Category
Commercial, industrial, and agricultural	$	6,279		22.45	%	$	4,940		27.61	%	$	4,511		29.71	%	$	3,517		32.31	%	$	2,790		33.42	%
Commercial mortgages		5,469		35.97	%		4,697		28.11	%		4,470		28.44	%		3,511		26.71	%		3,291		26.97	%
Residential real estate		2,880		36.27	%		2,466		37.36	%		1,991		35.02	%		1,916		33.45	%		1,583		31.61	%
Consumer		1,333		4.89	%		1,699		6.30	%		1,404		6.27	%		1,561		6.52	%		1,751		7.46	%
Credit Cards		66		0.39	%		83		0.51	%		71		0.51	%		96		0.52	%		85		0.49	%
Overdrafts		207		0.03	%		175		0.10	%		168		0.05	%		219		0.50	%		295		0.05	%
Total	$	16,234		100.00	%	$	14,060		100.00	%	$	12,615		100.00	%	$	10,820		100.00	%	$	9,795		100.00	%

In determining the allocation of the allowance for loan losses, the Corporation considers economic trends, historical patterns and specific credit reviews.

With regard to the credit reviews, a “watchlist” is evaluated on a monthly basis to determine potential commercial losses. Consumer loans and mortgage loans are allocated using historical loss experience.

DEPOSITS

(Dollars In Thousands)

	Year Ended December 31,
	2013					2012					2011
	Average Amount		Annual Rate			Average Amount		Annual Rate			Average Amount		Annual Rate
Demand – Non Interest Bearing	$	186,180				$	164,368				$	148,287
Demand – Interest Bearing		388,237		0.38	%		313,673		0.50	%		296,440		0.77	%
Savings Deposits		819,774		0.47	%		738,023		0.76	%		501,475		1.09	%
Time Deposits		219,791		1.20	%		229,694		1.62	%		320,704		1.82	%
TOTAL	$	1,613,982				$	1,445,758				$	1,266,906

The maturity of certificates of deposits and other time deposits in denominations of $100,000 or more as of December 31, 2013 is as follows:
Three months or less	$	41,001
Greater than three months and through twelve months		23,978
Greater than one year and through three years		41,957
Greater than three years		19,987
	$	126,923

RETURN ON EQUITY AND ASSETS

	Year Ended December 31,
	2013			2012			2011
Return on average assets		0.88	%		1.00	%		1.00	%
Return on average equity		11.38	%		12.17	%		12.36	%
Dividend payout ratio		51.40	%		47.93	%		53.79	%
Average equity to average assets ratio		7.73	%		8.22	%		8.09	%

16

ITEM 1A.   RISK FACTORS

The Corporation’s financial condition and results of operations are subject to various risks inherent in its business. The material risks and uncertainties that management believes affect the Corporation are described below. If any of these risks actually occur, the Corporation’s business, financial condition, liquidity, results of operations and prospects could be materially and adversely affected. You should consider all of the following risks together with all of the other information in this Annual Report on Form 10-K.

The possibility of the economy’s return to recessionary conditions and the possibility of further turmoil or volatility in the financial markets would likely have an adverse effect on the Corporation’s business, financial position and results of operations.

The economy in the United States and globally began to recover from severe recessionary conditions in mid-2009 and is currently in the midst of a moderate economic recovery. The sustainability of the moderate recovery is dependent on a number of factors that are not within the Corporation’s control, such as a return to private sector job growth and investment, strengthening of housing sales and construction, continuation of the economic recovery globally, and the timing and impact of changing governmental policies. The Corporation continues to face risks resulting from the aftermath of the severe recession generally and the moderate pace of the current recovery. A slowing or failure of the economic recovery would likely aggravate the adverse effects of these difficult economic and market conditions on the Corporation and on others in the financial services industry. In particular, the Corporation may face the following risks in connection with the current economic or market environment:

— The Corporation’s and the Bank’s ability to borrow from other financial institutions or to access the debt or equity capital markets on favorable terms or at all could be adversely affected by further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations.

— The Corporation faces increased regulation of the banking and financial services industry. Compliance with such regulation may increase its costs and limit its ability to pursue business opportunities.

— Market developments may affect customer confidence levels and may cause increases in loan delinquencies and default rates, which management expects would adversely impact the Bank’s charge-offs and provision for loan losses.

— Market developments may adversely affect the Bank’s securities portfolio by causing other-than-temporary-impairments, prompting write-downs and securities losses.

— Competition in banking and financial services industry could intensify as a result of the increasing consolidation of financial services companies in connection with current market conditions.

The Bank’s allowance for loan losses may not be adequate to cover loan losses which could have a material adverse effect on the Corporation’s business, financial condition and results of operations.

A significant source of risk for the Corporation arises from the possibility that losses will be sustained because borrowers, guarantors and related parties may fail to perform in accordance with the terms of their loan agreements. Most loans originated by the Bank are secured, but some loans are unsecured based upon management’s evaluation of the creditworthiness of the borrowers. With respect to secured loans, the collateral securing the repayment of these loans principally includes a wide variety of real estate, and to a lesser extent personal property, either of which may be insufficient to cover the obligations owed under such loans.

17

Collateral values and the financial performance of borrowers may be adversely affected by changes in prevailing economic, environmental and other conditions, including declines in the value of real estate, changes in interest rates and debt service levels, changes in oil and gas prices, changes in monetary and fiscal policies of the federal government, widespread disease, terrorist activity, environmental contamination and other external events, which are beyond the control of the Bank. In addition, collateral appraisals that are out of date or that do not meet industry recognized standards might create the impression that a loan is adequately collateralized when in fact it is not. Although the Bank may acquire any real estate or other assets that secure defaulted loans through foreclosures or other similar remedies, the amounts owed under the defaulted loans may exceed the value of the assets acquired.

The allowance for loan losses is subject to a formal analysis by the credit administrator of CNB using a methodology whereby loan pools are segregated into special mention, substandard, doubtful and unclassified categories and the pools are evaluated based on historical loss factors. The Bank monitors delinquencies and losses on a monthly basis. The Bank has adopted underwriting and credit monitoring policies and procedures, including the review of borrower financial statements and collateral appraisals, which management believes are appropriate to mitigate the risk of loss by assessing the likelihood of borrower non-performance and the value of available collateral. The Bank also manages credit risk by diversifying its loan portfolio. An ongoing independent review, subsequent to management’s review, of individual credits is performed by an independent loan review function, which reports to the Loan Committee of the Corporation’s Board of Directors. However, such policies and procedures have limitations, including judgment errors in management’s risk analysis, and may not prevent unexpected losses that could have a material adverse effect on the Corporation’s business, financial condition and results of operations.

Interest rate volatility could significantly reduce the Corporation’s profitability.

The Corporation’s earnings largely depend on the relationship between the yield on its earning assets, primarily loans and investment securities, and the cost of funds, primarily deposits and borrowings. This relationship, commonly known as the net interest margin, is susceptible to significant fluctuation and is affected by economic and competitive factors that influence the yields and rates, and the volume and mix of the Bank’s interest earning assets and interest bearing liabilities.

Interest rate risk can be defined as the sensitivity of net interest income and of the market value of financial instruments to the direction and frequency of changes in interest rates. Interest rate risk arises from the imbalance in the re-pricing, maturity and/or cash flow characteristics of assets and liabilities. The Corporation is subject to interest rate risk to the degree that its interest bearing liabilities re-price or mature more slowly or more rapidly or on a different basis than its interest earning assets. Changes in interest rates will affect the levels of income and expense recorded on a large portion of the Bank’s assets and liabilities, and fluctuations in interest rates will impact the market value of all interest sensitive assets. Significant fluctuations in interest rates could have a material adverse impact on the Corporation’s business, financial condition, results of operations, or liquidity.

The Bank’s interest rate risk measurement and management techniques incorporate the re-pricing and cash flow attributes of its balance sheet and off-balance sheet instruments as they relate to current and potential changes in interest rates. The level of interest rate risk, measured in terms of the potential future effect on earnings, is determined through the use of static gap analysis and earnings simulation modeling under multiple interest rate scenarios. Management’s objectives are to measure, monitor and develop strategies in response to the interest rate risk profile inherent in the Bank’s balance sheet in order to preserve the sensitivity of net interest income to actual or potential changes in interest rates. At

18

December 31, 2013, the interest rate sensitivity position was asset sensitive in the short-term. For further information on risk relating to interest rates, refer to Part I, Item 7a, “Quantitative and Qualitative Disclosures about Market Risk,” herein.

The Bank’s loans are principally concentrated in certain areas of Pennsylvania and Ohio, and adverse economic conditions in those markets could adversely affect the Corporation’s business, financial condition and results of operations.

The Corporation’s success is dependent to a significant extent upon general economic conditions in the United States and, in particular, the local economies in northwest and central Pennsylvania and central Ohio, the primary markets served by the Bank. The Bank is particularly exposed to real estate and economic factors in these geographic areas, as most of its loan portfolio is concentrated among borrowers in these markets. Furthermore, because a substantial portion of the Bank’s loan portfolio is secured by real estate in these areas, the value of the associated collateral is also subject to regional real estate market conditions.

The Bank is not immune to negative consequences arising from overall economic weakness and, in particular, a sharp downturn in the local real estate markets served by the Bank. While the Bank’s loan portfolio has not shown significant signs of credit quality deterioration despite continued challenges in the U.S. economy, we cannot assure you that no deterioration will occur. An economic recession in the markets served by the Bank, and the nation as a whole, could negatively impact household and corporate incomes. This impact could lead to decreased loan demand and increase the number of borrowers who fail to pay the Bank interest or principal on their loans, and accordingly, could have a material adverse effect on the Corporation’s business, financial condition, results of operations, or liquidity.

The Corporation’s investment securities portfolio is subject to credit risk, market risk, and liquidity risk, and declines in value in its investment securities portfolio may require it to record other than temporary impairment charges that could have a material adverse effect on its results of operations and financial condition.

The Corporation’s investment securities portfolio has risks beyond its control that can significantly influence the portfolio’s fair value. These factors include, but are not limited to, rating agency downgrades of the securities, defaults of the issuers of the securities, lack of market pricing of the securities, and continued instability in the credit markets. Recent lack of market activity with respect to certain of the securities has, in certain circumstances, required the Corporation to base its fair market valuation on unobservable inputs. The Corporation has engaged valuation experts to price these certain securities using proprietary models, which incorporate assumptions that market participants would use in pricing the securities, including bid/ask spreads and liquidity and credit premiums. Any change in current accounting principles or interpretations of these principles could impact the Corporation’s assessment of fair value and thus its determination of other-than-temporary impairment of the securities in its investment securities portfolio.

The Bank may be required to record other-than-temporary impairment charges on its investment securities if they suffer declines in value that are considered other-than-temporary. Numerous factors, including collateral deterioration underlying certain private label mortgage-backed securities, lack of liquidity for re-sales of certain investment securities, absence of reliable pricing information for certain investment securities, adverse changes in business climate, adverse actions by regulators, or unanticipated changes in the competitive environment could negatively effect the Bank’s securities portfolio in future periods. An other-than-temporary impairment charge could have a material adverse effect on the Corporation’s results of operations and financial condition.

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The Corporation’s business and that of the Bank is highly regulated and impacted by monetary policy, limiting the manner in which the Corporation and the Bank may conduct business and obtain financing, and modifications to the existing regulatory framework under which the Corporation operates could have a material adverse effect on its business, financial condition, results of operations or liquidity.

As a financial holding company and state-chartered financial institution, respectively, the Corporation and the Bank are subject to extensive regulation and supervision under federal and state laws and regulations. The restrictions imposed by such laws and regulations, along with the existing tax, accounting, securities, insurance, and monetary laws, regulations, rules, standards, policies and laws and interpretations, limit the manner in which the Corporation and the Bank conduct business, undertake new investments and activities, and obtain financing. These laws and regulations are designed primarily for the protection of the deposit insurance funds and consumers and not to benefit shareholders. These laws and regulations may sometimes impose significant limitations on the Corporation’s operations. These laws, regulations, rules, standards, policies and interpretations are constantly evolving and may change significantly over time.

The nature, extent, and timing of the adoption of significant new laws and regulations, or changes in or repeal of existing laws and regulations, or specific actions of our regulators, could have a material adverse effect on our business, financial condition, results of operations or liquidity. Furthermore, federal monetary policy, particularly as implemented through the Federal Reserve System, significantly affects credit risk and interest rate risk conditions for the Bank and the Corporation, and any unfavorable change in these conditions could have a material adverse effect on the Corporation’s business, financial condition, results of operations or liquidity.

Compliance with the Dodd-Frank Act is increasing our regulatory compliance burdens and may increase our operating costs and/or adversely impact our earnings and/or capital ratios.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was enacted on July 21, 2010. The Dodd-Frank Act represented a significant overhaul of many aspects of the regulation of the financial-services industry. Among other things, the Dodd-Frank Act created a new federal Consumer Financial Protection Bureau (“CFPB”), tightened capital standards, imposed clearing and margining requirements on many derivatives activities, and generally increased oversight and regulation of financial institutions and financial activities.

In addition to the self-implementing provisions of the statute, the Dodd-Frank Act calls for over 300 administrative rulemakings by various federal agencies to implement various parts of the legislation. While some rules have been finalized and/or issued in proposed form, many have yet to be proposed. It is impossible to predict when all such additional rules will be issued or finalized, and what the content of such rules will be. We will have to apply resources to ensure that we are in compliance with all applicable provisions of the Dodd-Frank Act and any implementing rules, which may increase our costs of operations and adversely impact our earnings.

The Dodd-Frank Act and any implementing rules that are ultimately issued could have adverse implications on the financial industry, the competitive environment, and/or our ability to conduct business.

The Corporation relies on its management and other key personnel, and the loss of any of them may adversely affect its operations.

The Corporation is and will continue to be dependent upon the services of its executive management team. In addition, it will continue to depend on its ability to retain and recruit key client relationship

20

managers. The unexpected loss of services of any key management personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on its business and financial condition.

Strong competition within the Corporation’s markets may have a material adverse impact on its profitability.

The Corporation competes with an ever-increasing array of financial service providers. As noted above, as a financial holding company and state-chartered financial institution, respectively, the Corporation and the Bank are subject to extensive regulation and supervision, including, in many cases, regulations that limit the type and scope of activities. The non-bank financial service providers that compete with the Corporation and the Bank may not be subject to such extensive regulation, supervision, and tax burden. Competition from nationwide banks, as well as local institutions, is strong in the Corporation’s markets.

The financial services industry is undergoing rapid technological change and technological advances are likely to intensify competition. In addition to improving customer services, effective use of technology increases efficiency and enables financial institutions to reduce costs. Accordingly, the Corporation’s future success will depend in part on its ability to address customer needs by using technology. The Corporation cannot assure you that it will be able to develop new technology driven products and services, or be successful in marketing these products to its customers. Many of its competitors have far greater resources to invest in technology.

Many regional, national and international competitors have far greater assets and capitalization than the Corporation has and greater access to capital markets and can consequently offer a broader array of financial services than it can. We cannot assure you that we will continue to be able to compete effectively with other financial institutions in the future. Furthermore, developments increasing the nature or level of competition could have a material adverse effect on the Corporation’s business, financial condition, results of operations, or liquidity. For further information on competition, refer to Part I, Item 1, “Competition” herein.

Non-compliance with applicable laws and/or regulations, including the Bank Secrecy Act and USA Patriot Act, may adversely affect the Corporation’s operations and its financial results and could result in significant fines or sanctions.

Federal and state regulators have the ability to impose substantial sanctions, restrictions and requirements on the Corporation’s banking and nonbanking subsidiaries if they determine, upon examination or otherwise, that any such subsidiary has violated laws or regulations with which it or its subsidiaries must comply, or that weaknesses or failures exist with respect to general standards of safety and soundness. Such enforcement actions may be formal or informal and can include, among other things, civil money penalties and orders to take certain actions or to refrain from certain actions. The imposition of regulatory sanctions, including any monetary penalties, may have a material impact on the Corporation’s financial condition and results of operations, damage its reputation, and/or cause it to lose its financial holding company status. In addition, compliance with any such action could distract management’s attention from the Corporation’s operations, cause the Corporation to incur significant expenses, restrict it from engaging in potentially profitable activities, and limit its ability to raise capital.

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The USA Patriot and Bank Secrecy Acts require financial institutions to develop programs to prevent the institutions from being used for money laundering and terrorist activities. If certain activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury Department’s Financial Crimes Enforcement Network. These rules also require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts or conduct transactions, and require the filing of certain reports, such as those for cash transactions above a certain threshold. Financial institutions must also refrain from transacting business with certain countries or persons designated by the Office of Foreign Assets Control.

Non-compliance with laws and regulations such as these could result in significant fines or sanctions. These particular laws and regulations have significant implications for all financial institutions, establish new crimes and penalties, and require the federal banking agencies, in reviewing merger and acquisition transactions, to consider the effectiveness of the parties to such transactions in combating money laundering and terrorist activities. Even inadvertent non-compliance and technical failure to follow the regulations may result in significant fines or other penalties, which could have a material adverse impact on the Corporation’s business, financial condition, results of operations or liquidity.

A failure in or breach of the Corporation’s operational or security systems or infrastructure, or those of third party vendors and other service providers, including as a result of cyber attacks, could disrupt the Corporation’s businesses, result in the disclosure or misuse of confidential or proprietary information, damage its reputation, increase its costs and cause losses.

As a financial institution, the Corporation depends on its ability to continuously process, record and monitor a large number of customer transactions and customer, public and regulatory expectations regarding operational and information security have increased over time. Accordingly, its operational systems and infrastructure must continue to be safeguarded and monitored for potential failures, disruptions and breakdowns. Although the Corporation has business continuity plans and other safeguards in place, disruptions or failures in the physical infrastructure or operating systems that support its businesses and customers, or cyber attacks or security breaches of the networks, systems or devices on which customers’ personal information is stored and that customers use to access the Corporation’s products and services could result in customer attrition, regulatory fines, penalties or intervention, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs, any of which could materially adversely affect the Corporation’s results of operations or financial condition.

Although to date the Corporation has not experienced any material losses relating to cyber attacks or other information security breaches, there can be no assurance that it will not suffer such losses in the future. The Corporation’s risk and exposure to these matters remains heightened because of, among other things, the evolving nature of these threats, our plans to continue to implement our Internet banking and mobile banking channel strategies and develop additional remote connectivity solutions to serve our customers when and how they want to be served. As a result, cybersecurity and the continued development and enhancement of the Corporation’s controls, processes and practices designed to protect its systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority for the Corporation. As cyber threats continue to evolve, the Corporation may be required to expend significant additional resources to continue to modify or enhance its protective measures or to investigate and remediate any information security vulnerabilities.

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The Corporation may not be able to meet its cash flow needs on a timely basis at a reasonable cost, and the Corporation’s cost of funds for banking operations may significantly increase as a result of general economic conditions, interest rates and competitive pressures.

Liquidity is the ability to meet cash flow obligations as they come due and cash flow needs on a timely basis and at a reasonable cost. The liquidity of the Bank is used to make loans and to repay deposit and borrowing liabilities as they become due, or are demanded by customers and creditors. Many factors affect the Bank’s ability to meet liquidity needs, including variations in the markets served by its network of offices, its mix of assets and liabilities, reputation and standing in the marketplace, and general economic conditions.

The Bank’s primary source of funding is retail deposits, gathered throughout its network of banking offices. Periodically, the Corporation utilizes term borrowings from the Federal Home Loan Bank of Pittsburgh, or FHLB, of which the Bank is a member, and other lenders to meet funding obligations. The Bank’s securities and loan portfolios provide a source of contingent liquidity that could be accessed in a reasonable time period through sales.

Significant changes in general economic conditions, market interest rates, competitive pressures or otherwise, could cause the Bank’s deposits to decrease relative to overall banking operations, and it would have to rely more heavily on brokered funds and borrowings in the future, which are typically more expensive than deposits.

Management and the Board of Directors of CNB, through its Asset/Liability Committee, or the ALCO, monitor liquidity and the ALCO establishes and monitors acceptable liquidity ranges. The Bank actively manages its liquidity position through target ratios. Continual monitoring of these ratios, both historical and through forecasts under multiple rate scenarios, allows the Bank to employ strategies necessary to maintain adequate liquidity.

Changes in economic conditions, including consumer savings habits and availability of or access to capital, could potentially have a significant impact on the Bank’s liquidity position, which in turn could materially impact the Corporation’s financial condition, results of operations and cash flows.

A substantial decline in the value of the Bank’s FHLB common stock may adversely affect the Corporation’s results of operations, liquidity and financial condition.

As a requirement of membership in the FHLB of Pittsburgh, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. Borrowings from the FHLB represent the Bank’s primary source of short-term and long-term wholesale funding.

In an extreme situation, it is possible that the capitalization of an FHLB, including the FHLB of Pittsburgh, could be substantially diminished or reduced to zero. Consequently, given that there is no trading market for the Bank’s FHLB common stock, the Corporation’s management believes that there is a risk that the Corporation’s investment could be deemed impaired at some time in the future. If this occurs, it may adversely affect the Corporation’s results of operations and financial condition.

In addition, if the capitalization of the FHLB of Pittsburgh is substantially diminished, the Bank’s liquidity may be adversely impaired if it is not able to obtain alternative sources of funding.

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There are 12 banks of the FHLB, including Pittsburgh. The 12 FHLB banks are jointly liable for the consolidated obligations of the FHLB system. To the extent that one FHLB bank cannot meet its obligations to pay its share of the system’s debt, other FHLB banks can be called upon to make the payment. The Corporation cannot assure you, however, that the FHLB system will be able to meet these obligations.

The Bank could be held responsible for environmental liabilities relating to properties acquired through foreclosure, resulting in significant financial loss.

In the event the Bank forecloses on a defaulted commercial or residential mortgage loan to recover its investment, it may be subject to environmental liabilities in connection with the underlying real property, which could significantly exceed the value of the real property. Although the Bank exercises due diligence to discover potential environmental liabilities prior to acquiring any property through foreclosure, hazardous substances or wastes, contaminants, pollutants, or their sources may be discovered on properties during its ownership or after a sale to a third party. The Corporation cannot assure you that the Bank would not incur full recourse liability for the entire cost of any removal and cleanup on an acquired property, that the cost of removal and cleanup would not exceed the value of the property, or that the Bank could recover any of the costs from any third party. Losses arising from environmental liabilities could have a material adverse impact on the Corporation’s business, financial condition, results of operations, or liquidity.

Federal and state governments could pass legislation responsive to current credit conditions which could cause the Corporation to experience higher credit losses.

The Corporation could experience higher credit losses because of federal or state legislation or regulatory action that reduces the amount the Bank’s borrowers are otherwise contractually required to pay under existing loan contracts. Also, the Corporation could experience higher credit losses because of federal or state legislation or regulatory action that limits the Bank’s ability to foreclose on property or other collateral or makes foreclosure less economically feasible. The Corporation cannot assure you that future legislation will not significantly and adversely impact its ability to collect on its current loans or foreclose on collateral.

The preparation of the Corporation’s financial statements requires the use of estimates that could significantly vary from actual results, which could have a material adverse effect on the Corporation’s business, financial condition, results of operations or liquidity.

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make significant estimates that affect the financial statements. For example, one of these significant estimates is the allowance for loan losses. Due to the inherent nature of estimates, the Corporation cannot provide absolute assurance that it will not significantly increase the allowance for loan losses and/or sustain credit losses that are significantly higher than the provided allowance, which could have a material adverse effect on the Corporation’s business, financial condition, results of operations or liquidity.

The Corporation’s financial results may be subject to the impact of changes in accounting standards or interpretation in new or existing standards.

From time to time the Financial Accounting Standards Board, or FASB, and the SEC change accounting regulations and reporting standards that govern the preparation of the Corporation’s financial statements. In addition, the FASB, SEC, and bank regulators may revise their previous interpretations regarding existing accounting regulations and the application of these accounting

24

standards. These revisions in their interpretations are out of the Corporation’s control and may have a material impact on its financial statements.

Customer information may be obtained and used fraudulently, which may negatively impact the Corporation’s reputation and customer base, cause increased regulatory scrutiny and expose the Corporation to litigation.

Risk of theft of customer information resulting from security breaches by third parties exposes the Corporation to reputation risk and potential monetary loss. CNB has exposure to fraudulent use of its customers’ personal information resulting from its general business operations and through customer use of financial instruments such as debit cards. While CNB has policies and procedures designed to prevent or limit the effect of this risk, the Corporation cannot assure you that any such security breaches will not occur or, if they do occur, that they will be adequately addressed. The occurrence of any security breaches could damage CNB’s reputation, result in a loss of customer business, subject CNB to additional regulatory scrutiny, or expose CNB to civil litigation and possible financial liability, any of which could have a material adverse effect on CNB’s financial condition and results of operations.

The unsoundness of other financial institutions with which the Corporation does business could adversely affect the Corporation’s business, financial condition or results of operations.

Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial institutions are interrelated as a result of trading, clearing, counterparty, investment or other relationships. The Corporation routinely executes transactions with counterparties in the financial services industry such as commercial banks, brokers and dealers, investment banks and other institutional clients for a range of transactions including loan participations, derivatives and hedging transactions. In addition, the Corporation invests in securities or loans originated or issued by financial institutions or supported by the loans they originate. As a result, defaults by, or even rumors or questions about, one or more financial institutions, or the financial industry generally, have led to market-wide liquidity problems and could lead to losses or defaults by us or other institutions. Many of these transactions expose the Corporation to credit or investment risk in the event of default by the Corporation’s counterparty. In addition, the Corporation’s credit risk may be exacerbated if the collateral it holds cannot be realized or is liquidated at prices not sufficient to recover the full amount of the loan or other exposure to the Corporation. The Corporation could incur losses to its securities portfolio as a result of these issues. These types of losses may have a material adverse effect on the Corporation’s business, financial condition or results of operation.

Some provisions contained in the Corporation’s articles of incorporation and its bylaws and under Pennsylvania law could deter a takeover attempt or delay changes in control or management of the Corporation.

Certain anti-takeover provisions of the Pennsylvania Business Corporation Law of 1988, as amended, apply to Pennsylvania registered corporations (e.g., publicly traded companies) including, but not limited to, those relating to (1) control share acquisitions, (2) disgorgement of profits by certain controlling persons, (3) business combination transactions with interested shareholders, and (4) the rights of shareholders to demand fair value for their stock following a control transaction. Pennsylvania law permits corporations to opt-out of these anti-takeover provisions, but the Corporation has not done so. Such provisions could have the effect of deterring takeovers or delaying changes in control or management of the Corporation. Additionally, such provisions could limit the price that some investors might be willing to pay in the future for shares of the Corporation’s common stock.

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For example, the Corporation’s amended and restated articles of incorporation require the affirmative vote of 66% of the outstanding shares entitled to vote to effect a business combination. In addition, the Corporation’s amended and restated articles of incorporation, subject to the limitations prescribed in such articles and subject to limitations prescribed by Pennsylvania law, authorize the Corporation’s board of directors, from time to time by resolution and without further shareholder action, to provide for the issuance of shares of preferred stock, in one or more series, and to fix the designation, powers, preferences and other rights of the shares and to fix the qualifications, limitations and restrictions thereof. As a result of its broad discretion with respect to the creation and issuance of preferred stock without shareholder approval, the board of directors could adversely affect the voting power and other rights of the holders of common stock and, by issuing shares of preferred stock with certain voting, conversion and/or redemption rights, could discourage any attempt to obtain control of CNB.

The Corporation’s bylaws, as amended and restated, provide for the division of the Corporation’s board of directors into three classes of directors, with each serving staggered terms. In addition, any amendment to the Corporation’s bylaws must be approved by the affirmative vote of a majority of the votes cast by all shareholders entitled to vote thereon and, if any shareholders are entitled to vote thereon as a class, upon receiving the affirmative vote of a majority of the votes cast by the shareholders entitled to vote as a class.

Any of the foregoing provisions may have the effect of deterring takeovers or delaying changes in control or management of the Corporation.

The price of the Corporation’s common stock may fluctuate significantly, and this may make it difficult for you to resell shares of common stock owned by you at times or at prices you find attractive.

The price of the Corporation’s common stock on the NASDAQ constantly changes. The Corporation expects that the market price of its common stock will continue to fluctuate, and the Corporation cannot give you any assurances regarding any trends in the market prices for its common stock.

The Corporation’s stock price may fluctuate as a result of a variety of factors, many of which are beyond its control. These factors include the Corporation’s:

• past and future dividend practice;

• financial condition, performance, creditworthiness and prospects;

• quarterly variations in the Corporation’s operating results or the quality of the Corporation’s assets;

• operating results that vary from the expectations of management, securities analysts and investors;

• changes in expectations as to the Corporation’s future financial performance;

• announcements of innovations, new products, strategic developments, significant contracts, acquisitions and other material events by the Corporation or its competitors;

• the operating and securities price performance of other companies that investors believe are comparable to the Corporation;

• future sales of the Corporation’s equity or equity-related securities;

• the credit, mortgage and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally; and

• instability in global financial markets and global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility, budget deficits or sovereign debt level concerns and other geopolitical, regulatory or judicial events.

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The Corporation’s ability to pay dividends is limited by law and regulations.

The future declaration of dividends by the Corporation’s Board of Directors will depend on a number of factors, including capital requirements, regulatory limitations, the Corporation’s operating results and financial condition and general economic conditions. The Corporation’s ability to pay dividends depends primarily on the receipt of dividends from the Bank. Dividend payments from the Bank are subject to legal and regulatory limitations, generally based on retained earnings, imposed by bank regulatory agencies. The ability of the Bank to pay dividends is also subject to financial condition, regulatory capital requirements, capital expenditures and other cash flow requirements. The Corporation cannot assure you that the Bank will be able to pay dividends to CNB in the future. The Corporation may decide to limit the payment of dividends to its stockholders even when the Corporation has the legal ability to pay them in order to retain earnings for use in the Corporation’s business.

The risks presented by acquisitions could adversely affect our financial condition and results of operations.

Any acquisitions, including our recently completed acquisition of FC Banc Corp., will be accompanied by the risks commonly encountered in acquisitions including, among other things: our ability to realize anticipated cost savings and avoid unanticipated costs relating to the merger, the difficulty of integrating operations and personnel, the potential disruption of our or the acquired company’s ongoing business, the inability of our management to maximize our financial and strategic position, the inability to maintain uniform standards, controls, procedures and policies, and the impairment of relationships with the acquired company’s employees and customers as a result of changes in ownership and management. These risks may prevent the Corporation from fully realizing the anticipated benefits of an acquisition or cause the realization of such benefits to take longer than expected.

ITEM 1B.  UNRESOLVED STAFF COMMENTS

None

ITEM 2.  PROPERTIES

The headquarters of the Corporation and the Bank are located at 1 South Second Street, Clearfield, Pennsylvania, in a building owned by the Corporation. The Bank operates 37 full-service offices and 1 loan production office. Of these 37 offices, 25 are owned and 12 are leased from independent owners. Holiday Financial Services Corporation has eleven full-service offices of which eight are leased from independent owners and three are leased from the Bank. There are no encumbrances on the offices owned and the rental expense on the leased property is immaterial in relation to operating expenses. The initial lease terms range from one to twenty years.

ITEM 3.  LEGAL PROCEEDINGS

There are no material pending legal proceedings to which the Corporation or any of its subsidiaries is a party, or of which any of their property is the subject, except ordinary routine proceedings which are incidental to the business.

ITEM 4.  MINE SAFETY DISCLOSURES

None

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PART II.

ITEM 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Quarterly Share Data; Holders

Our common stock is traded on the Global Select Market of The NASDAQ Stock Market LLC under the symbol CCNE. The following tables set forth, for the periods indicated, the quarterly high and low sales price of the Corporation’s common stock as reported by the NASDAQ Global Select Market and actual cash dividends paid per share. As of December 31, 2013, the approximate number of shareholders of record of the Corporation’s common stock was 3,817.

Price Range of Common Stock

	2013				2012
	High		Low		High		Low
First quarter	$	17.35	$	16.34	$	17.50	$	14.59
Second quarter		17.11		15.50		17.32		14.24
Third quarter		18.47		16.41		18.20		15.28
Fourth quarter		21.04		16.58		17.90		14.62

Cash Dividends Paid

	2013		2012
First quarter	$	0.165	$	0.165
Second quarter		0.165		0.165
Third quarter		0.165		0.165
Fourth quarter		0.165		0.165

See Note 18 to the consolidated financial statements in Item 8 and “Supervision and Regulation—Dividend Restrictions” in Part I, Item 1 for a discussion of dividend restrictions.

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Issuer Purchases of Equity Securities

The following table provides information with respect to any purchase of shares of the Corporation’s common stock made by or on behalf of the Corporation for the quarter ended December 31, 2013.

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or approximate dollar value) of Shares that May Yet Be Purchased Under the Plans or Programs (1)
October 1 – 31, 2013		-		-		-		168,386
November 1 – 31, 2013		-		-		-		168,386
December 1 - 31, 2013		-		-		-		168,386

(1) The Corporation’s stock repurchase program, which was announced on December 12, 2006, authorizes the repurchase of up to 500,000 shares of common stock. The program will remain in effect until fully utilized or until modified, suspended or terminated. As of December 31, 2013, there were 168,386 shares remaining in the program.

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Performance Graph

Set forth below is a chart comparing the Corporation’s cumulative return to stockholders against the cumulative return of the NASDAQ Composite Index and a Peer Group Index of banking organizations for the five-year period commencing December 31, 2008 and ending December 31, 2013.

	Period Ending
Index		12/31/08	12/31/09	12/31/10	12/31/11	12/31/12	12/31/13
CNB Financial Corporation		100.00	150.48	145.78	162.86	176.25	212.30
NASDAQ Composite		100.00	145.36	171.74	170.38	200.63	281.22
SNL Bank NASDAQ		100.00	81.12	95.71	84.92	101.22	145.48

Source : SNL Financial LC, Charlottesville, VA

^© 2014

www.snl.com

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ITEM 6.  SELECTED FINANCIAL DATA

	Year ended December 31,
(Dollars in thousands, except per share data)	2013		2012		2011		2010		2009
INTEREST AND DIVIDEND INCOME:
Loans including fees	$	53,927	$	49,760	$	48,324	$	46,955	$	45,839
Securities:
Taxable		13,456		14,688		14,395		11,728		7,902
Tax-exempt		3,828		3,595		2,957		2,435		2,095
Dividends		205		86		36		29		34
Total interest and dividend income		71,416		68,129		65,712		61,147		55,870
INTEREST EXPENSE:
Deposits		7,995		10,875		13,625		13,558		13,091
Borrowed funds		3,447		3,245		3,176		4,716		4,527
Subordinated debentures		770		800		778		782		850
Total interest expense		12,212		14,920		17,579		19,056		18,468
NET INTEREST INCOME		59,204		53,209		48,133		42,091		37,402
PROVISION FOR LOAN LOSSES		6,138		6,381		4,937		5,158		4,465
Net interest income after provision for loan losses		53,066		46,828		43,196		36,933		32,937
NON-INTEREST INCOME		13,766		12,664		10,719		9,650		7,950
NON-INTEREST EXPENSES		43,813		35,945		33,282		31,798		30,021
INCOME BEFORE INCOME TAXES		23,019		23,547		20,633		14,785		10,866
INCOME TAX EXPENSE		6,340		6,411		5,529		3,469		2,354
NET INCOME	$	16,679	$	17,136	$	15,104	$	11,316	$	8,512
PER SHARE DATA:
Basic	$	1.29	$	1.38	$	1.23	$	1.06	$	0.98
Fully diluted		1.29		1.38		1.23		1.06		0.98
Dividends declared		0.66		0.66		0.66		0.66		0.66
Book value per share at year end		11.43		11.65		10.66		8.96		7.92
AT END OF PERIOD:
Total assets	$	2,131,289	$	1,773,079	$	1,602,207	$	1,413,511	$	1,161,591
Securities		690,118		741,770		641,340		503,028		347,748
Loans, net of unearned discount		1,295,363		927,824		849,883		794,562		715,142
Allowance for loan losses		16,234		14,060		12,615		10,820		9,795
Deposits		1,835,314		1,485,003		1,353,851		1,162,868		956,858
FHLB and other borrowings		75,000		74,296		74,456		105,259		100,003
Subordinated debentures		20,620		20,620		20,620		20,620		20,620
Shareholders’ equity		164,911		145,364		131,889		109,645		69,409
KEY RATIOS:
Return on average assets		0.88%		1.00%		1.00%		0.87%		0.79%
Return on average equity		11.38%		12.17%		12.36%		11.62%		12.86%
Loan to deposit ratio		70.58%		62.48%		62.78%		68.33%		74.74%
Dividend payout ratio		51.40%		47.93%		53.79%		61.27%		67.27%
Average equity to average assets ratio		7.73%		8.22%		8.09%		7.46%		6.17%

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ITEM 7.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the consolidated financial statements of CNB Financial Corporation (the “Corporation”) is presented to provide insight into management’s assessment of financial results. The Corporation’s subsidiary, CNB Bank (the “Bank”), provides financial services to individuals and businesses primarily within its primary market area of the Pennsylvania counties of Cambria, Cameron, Centre, Clearfield, Crawford, Elk, Indiana, Jefferson, and McKean. As ERIEBANK, a division of CNB Bank, the Bank operates in the Pennsylvania counties of Crawford, Erie, and Warren. As FCBank, a division of CNB Bank, the Bank operates in the Ohio counties of Crawford, Richland, Ashland, Wayne, Marion, Morrow, Knox, Holmes, Delaware, and Franklin. The Bank is subject to regulation, supervision and examination by the Pennsylvania State Department of Banking as well as the Federal Deposit Insurance Corporation.

CNB Securities Corporation is incorporated in Delaware and currently maintains investments in debt and equity securities. County Reinsurance Company is an Arizona Corporation and provides credit life and disability insurance for customers of CNB Bank. CNB Insurance Agency, incorporated in Pennsylvania, provides for the sale of nonproprietary annuities and other insurance products. Holiday Financial Services Corporation (“Holiday”), incorporated in Pennsylvania, offers small balance unsecured loans and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics.

The financial condition and results of operations of the Corporation and its consolidated subsidiaries are not necessarily indicative of future performance. Management’s discussion and analysis should be read in conjunction with the audited consolidated financial statements and related notes.

Risk identification and management are essential elements for the successful management of the Corporation. In the normal course of business, the Corporation is subject to various types of risk, including interest rate, credit, and liquidity risk. These risks are controlled through policies and procedures established by the Corporation.

Interest rate risk is the sensitivity of net interest income and the market value of financial instruments to the direction and frequency of changes in interest rates. Interest rate risk results from various repricing frequencies and the maturity structure of the financial instruments owned by the Corporation. The Corporation uses its asset/liability management policy and systems to control, monitor and manage interest rate risk.

Credit risk represents the possibility that a customer may not perform in accordance with contractual terms. Credit risk results from loans to customers and the purchase of securities. The Corporation manages credit risk by following an established credit policy and using a disciplined evaluation of the adequacy of the allowance for loan losses. Also, the investment policy limits the amount of credit risk that may be taken in the securities portfolio.

Liquidity risk represents the inability to generate or otherwise obtain funds at reasonable rates to satisfy commitments to borrowers and obligations to depositors. The Corporation has established guidelines within its asset-liability management policy to manage liquidity risk. These guidelines include contingent funding alternatives.

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Forward-Looking Statements

The information below includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the financial condition, liquidity, results of operations, future performance and our business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond our control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) changes in general business, industry or economic conditions or competition; (ii) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principals or otherwise; (iii) adverse changes or conditions in capital and financial markets; (iv) changes in interest rates; (v) higher than expected costs or other difficulties related to integration of combined or merged businesses; (vi) the inability to realize expected cost savings or achieve other anticipated benefits in connection with business combinations and other acquisitions; (vii) changes in the quality or composition of our loan and investment portfolios; (viii) adequacy of loan loss reserves; (ix) increased competition; (x) loss of certain key officers; (xi) continued relationships with major customers; (xii) deposit attrition; (xiii) rapidly changing technology; (xiv) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xv) changes in the cost of funds, demand for loan products or demand for financial services; and (xvi) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on our financial position and our results of operations.

The forward-looking statements contained herein are based upon management’s beliefs and assumptions. Any forward-looking statement made herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Completed Acquisition

On March 26, 2013, the Corporation announced the signing of a definitive merger agreement to acquire FC Banc Corp. and its subsidiary, Farmers Citizens Bank, for $30.00 per share in cash and stock, or approximately $41.6 million in the aggregate. The transaction closed on October 11, 2013. Farmers Citizens Bank served the central Ohio markets of Bucyrus, Cardington, Fredericktown, Mount Hope and Shiloh, as well as the markets of Worthington and Upper Arlington in the greater Columbus, Ohio area, with 8 branch locations. The Corporation continues to operate these 8 branch locations as FCBank, a division of CNB Bank, with local decision making and oversight.

In order to facilitate its entry into the central Ohio market, the Bank opened a loan production office in Dublin, Ohio in the third quarter of 2013. In the fourth quarter of 2013, management incorporated this office into the commercial banking division of FCBank.

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General Overview

Management concentrates on return on average equity, earnings per share, asset quality, and other metrics to measure the performance of the Corporation. The interest rate environment will continue to play an important role in the future earnings of the Corporation. We experienced some compression of our net interest margin in 2013 as a result of the current interest rate environment. During the past several years, in order to address the historic lows on interest rates that are primarily tied to short-term rates, such as the Prime Rate, the Corporation has taken a variety of measures including instituting rate floors on our commercial lines of credit and home equity lines. In addition, the Corporation decreased interest rates on certain deposit products during 2013 and 2012 but maintained deposit growth as a result of successful marketing and business development strategies. The increase in intermediate and long-term market interest rates during 2013 did not have a significant impact on the Corporation’s earnings.

Non-interest costs are expected to increase with the growth of the Corporation; however, management’s growth strategies are expected to also result in an increase in earning assets as well as enhanced non-interest income which is expected to more than offset increases in non-interest expenses in 2014 and beyond. While past results are not an indication of future earnings, management believes the Corporation is well-positioned to sustain core earnings during 2014.

The Dodd-Frank Act, enacted into law on July 21, 2010, includes numerous provisions designed to strengthen the financial industry, enhance consumer protection, expand disclosures and provide for transparency, and significantly changed the bank regulatory structure and affected and will continue to affect the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies.

The Dodd-Frank Act requires various federal agencies to adopt a broad range of new rules and regulations, and to prepare various studies and reports for Congress.

It is difficult to predict at this time what specific impact certain provisions of the Dodd-Frank Act and the implementing rules and regulations will have on the Corporation. The legislation and any implementing rules may have adverse implications on the financial industry, the competitive environment, and the Corporation’s ability to conduct business. The Corporation will apply resources to ensure that it is in compliance with all applicable provisions of the Dodd-Frank Act and its many and varied implementing rules, which may increase its costs of operations and adversely impact its earnings.

Financial Condition

The following table presents ending balances, growth, and the percentage change of certain measures of our financial condition for specified years (dollars in millions):

	2013 Balance		$ Change vs. prior year			% Change vs. prior year			2012 Balance		$ Change vs. prior year		% Change vs. prior year			2011 Balance
Total assets	$	2,131.3	$	358.2			20.2	%	$	1,773.1	$	170.9		10.7	%	$	1,602.2
Total loans, net		1,279.1		365.4			40.0			913.8		76.5		9.1			837.3
Total securities		690.1		(51.7	)		(7.0	)		741.7		100.4		15.7			641.3
Total deposits		1,835.3		350.3			23.6			1,485.0		131.1		9.7			1,353.9
Total shareholders’ equity		164.9		19.5			13.4			145.4		13.5		10.2			131.9

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Overview of Balance Sheet

In conjunction with its acquisition of FC Banc Corp. in the fourth quarter of 2013, the Corporation received loans with a fair value of $247.7 million and assumed deposits with a fair value of $332.0 million. Excluding the loans and deposits acquired, the Corporation’s loan growth and deposit growth were $117.7 million and $18.3 million, respectively.

During the fourth quarter of 2013, 1,873,879 shares of common stock were issued in connection with the acquisition of FC Banc Corp. The shares were valued at approximately $33.6 million based on the October 11, 2013 closing price of $17.91 per share. This increase in shareholders’ equity was offset by a decrease in accumulated other comprehensive income of $23.4 million resulting from the decline in fair value of available-for-sale securities in relation to book value. This offset was expected given the increases in intermediate and long-term interest rates that occurred in 2013.

Cash and Cash Equivalents

Cash and cash equivalents totaled $29.6 million at December 31, 2013 compared to $31.9 million at December 31, 2012. Cash and cash equivalents fluctuate based on the timing and amount of liquidity events that occur in the normal course of business. We believe the year end balance to be adequate to support our expected funding needs in the short term.

We believe the liquidity needs of the Corporation are satisfied by the current balance of cash and cash equivalents, readily available access to traditional funding sources, Federal Home Loan Bank financing, and the portion of the securities and loan portfolios that matures within one year. These sources of funds will enable the Corporation to meet cash obligations and off-balance sheet commitments as they come due.

Securities

Securities available for sale and trading securities have combined to decrease $51.7 million, or 7.0%, at December 31, 2013 when compared to December 31, 2012, as the Corporation has been able to deploy principal cash flows from the securities portfolio resulting from maturities and sales in the loan portfolio. Note 4 to the consolidated financial statements provides more detail concerning the composition of the Corporation’s securities portfolio, the process for evaluating securities for other-than-temporary impairment, and for valuation of structured pooled trust preferred securities.

The Corporation generally buys into the market over time and does not attempt to “time” its transactions. In doing this, the highs and lows of the market are averaged into the portfolio and the overall effect of different rate environments is minimized. The Corporation monitors the earnings performance and the effectiveness of the liquidity of the securities portfolio on a regular basis through meetings of the Asset/Liability Committee of the Corporation’s Board of Directors (“ALCO”). The ALCO also reviews and manages interest rate risk for the Corporation. Through active balance sheet management and analysis of the securities portfolio, we maintain a sufficient level of liquidity to satisfy depositor requirements and various credit needs of our customers.

Loans

The Corporation’s lending is focused in the west central and northwest Pennsylvania and central Ohio markets and consists principally of commercial and retail lending, which includes single family residential mortgages and other consumer loans.

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As detailed in the table below, at December 31, 2013, the Corporation had $1.3 billion in loans outstanding, net of unearned discount, an increase of $367.5 million since December 31, 2012. As described in the overview of the balance sheet, the Corporation acquired loans of $247.7 million from FC Banc Corp. in 2013. In addition, the Corporation had organic loan growth of $117.7 million, or 12.9% of loans outstanding at December 31, 2012. The increase was primarily the result of two factors. The first factor was increasing demand for commercial mortgage loans. The Corporation views commercial lending as its competitive advantage and continues to focus on this area by hiring and retaining experienced loan officers and supporting them with quality credit analysis. The second factor was increasing demand for residential mortgage loan products throughout 2013, resulting in both refinancing activity as well as new mortgage loans and home equity borrowings.

(dollars in thousands)	2013			2012
Commercial, industrial, and agricultural	$	291,704		$	257,091
Commercial mortgages		467,292			261,791
Residential real estate		471,298			347,904
Consumer		63,491			58,668
Credit cards		5,065			4,800
Overdrafts		409			971
Less: unearned discount		(3,896	)		(3,401	)
Total loans, net of unearned discount	$	1,295,363		$	927,824

In its Pennsylvania markets, the Corporation expects loan demand in 2014 to be consistent with 2013. In its Ohio markets, the Corporation expects significant growth in its commercial mortgage portfolio as a result of enhanced lending opportunities anticipated in the Columbus, Ohio metropolitan area.

Loan Concentration

The Corporation monitors loan concentrations by individual industries in order to track potential risk exposures resulting from industry related downturns. In connection with the acquisition of FC Banc Corp., the Corporation added approximately $183 million to its commercial real estate loan portfolio. At December 31, 2013, no concentration existed within our commercial or real estate loan portfolio that exceeded 10% of the total loans.

Loan Quality

The Corporation has established written lending policies and procedures that require underwriting standards, loan documentation, and credit analysis standards to be met prior to funding a loan. Subsequent to the funding of a loan, ongoing review of credits is required. Credit reviews are performed annually on approximately 65% of the commercial loan portfolio by an outsourced loan review firm. In addition, classified assets, past due loans and nonaccrual loans are reviewed by the loan review partner semiannually and monthly by our credit administration staff.

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The following table presents information concerning loan delinquency and other non-performing assets at December 31, 2013, 2012, and 2011 (dollars in thousands):

	2013		2012		2011
Non-accrual loans	$	11,573	$	14,445	$	16,567
Accrual loans greater than 89 days past due		344		357		441
Total nonperforming loans		11,917		14,802		17,008
Other real estate owned		986		325		505
Total nonperforming assets	$	12,903	$	15,127	$	17,513
Loans modified in a troubled debt restructuring (TDR):
Performing TDR loans	$	8,006	$	9,961	$	7,688
Non-performing TDR loans *		4,130		1,660		-
Total TDR loans	$	12,136	$	11,621	$	7,688
Total loans, net of unearned income	$	1,295,363	$	927,824	$	849,883
Nonperforming loans as a percentage of loans, net		0.92%		1.60%		2.00%
Total assets	$	2,131,289	$	1,773,079	$	1,602,207
Nonperforming assets as a percentage of total assets		0.61%		0.85%		1.09%

* Nonperforming TDR loans are also included in the balance of non-accrual loans in the previous table.

Management continues to closely monitor nonperforming loans, and the Corporation’s nonperforming loans to total loans ratio continues to be favorable compared to peer institutions. See the “Allowance for Loan Losses” section for further discussion of credit review procedures and changes in nonperforming loans.

Allowance for Loan Losses

The allowance for loan losses is established by provisions for losses in the loan portfolio as well as overdrafts in deposit accounts. These provisions are charged against current income. Loans and overdrafts deemed not collectible are charged off against the allowance while any subsequent collections are recorded as recoveries and increase the allowance.

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The following table presents activity within the allowance for loan losses during the years ended December 31, 2013, 2012, and 2011 (dollars in thousands):

	2013			2012			2011
Balance at beginning of period	$	14,060		$	12,615		$	10,820
Charge-offs:
Commercial, industrial, and agricultural		(958	)		(2,871	)		(1,796	)
Commercial mortgages		(1,931	)		(401	)		(175	)
Residential real estate		(467	)		(304	)		(217	)
Consumer		(1,919	)		(1,279	)		(907	)
Credit cards		(97	)		(78	)		(39	)
Overdrafts		(258	)		(257	)		(222	)
		(5,630	)		(5,190	)		(3,356	)
Recoveries:
Commercial, industrial, and agricultural		7			45			9
Commercial mortgages		1,430			-			-
Residential real estate		5			1			13
Consumer		114			91			88
Credit cards		16			18			10
Overdrafts		94			99			94
		1,666			254			214
Net charge-offs		(3,964	)		(4,936	)		(3,142	)
Provision for loan losses		6,138			6,381			4,937
Balance at end of period	$	16,234		$	14,060		$	12,615
Loans, net of unearned income	$	1,295,363		$	927,824		$	849,883
Allowance to net loans		1.25%			1.52%			1.48%

At December 31, 2013, the ratio of the allowance for loan losses to loans was 1.25%, compared to 1.52% at December 31, 2012 and 1.48% at December 31, 2011. In connection with its acquisition of FC Banc Corp. in the fourth quarter of 2013, CNB recorded a fair value adjustment on the acquired loan portfolio of $8.7 million and there was no carryover of the allowance for loan losses that was previously recorded by FC, resulting in the decrease in the ratio of the allowance for loan losses to total loans.

The adequacy of the allowance for loan losses is subject to a formal analysis by the credit administrator of the Corporation. As part of the formal analysis, delinquencies and losses are monitored monthly. The loan portfolio is divided into several categories in order to better analyze the entire pool. First, impaired loans are selected and that group of loans is given a specific reserve. The remaining loans are pooled, by category, into these segments:

Reviewed

• Commercial, industrial, and agricultural

• Commercial mortgages

Homogeneous

• Residential real estate

• Consumer

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• Credit cards

• Overdrafts

The reviewed loan pools are further segregated into three categories: special mention, substandard, and doubtful. Historical loss factors are calculated for each reviewed pool, excluding overdrafts, based on the previous eight quarters of experience. The homogeneous pools are evaluated by analyzing the historical loss factors from the most previous quarter end and the two most recent year ends.

The historical loss factors for both the reviewed and homogeneous pools are adjusted based on these six qualitative factors:

• levels of and trends in delinquencies, non-accrual loans, and classified loans;

• trends in volume and terms of loans;

• effects of any changes in lending policies and procedures;

• experience, ability and depth of management;

• national and local economic trends and conditions; and

• concentrations of credit.

The methodology described above was created using the experience of our credit administrator, guidance from the regulatory agencies, expertise of our third party loan review provider, and discussions with our peers. The resulting factors are applied to the pool balances in order to estimate the probable risk of loss within each pool.

As a result of the application of these procedures, the allocation of the allowance for loan losses was as follows at December 31, 2013, 2012 and 2011 (in thousands):

	2013		2012		2011
Commercial, industrial and agricultural	$	6,279	$	4,940	$	4,511
Commercial mortgages		5,469		4,697		4,470
Residential real estate		2,880		2,466		1,991
Consumer		1,333		1,699		1,404
Credit cards		66		83		71
Overdrafts		207		175		168
Total	$	16,234	$	14,060	$	12,615

Throughout 2013, the Corporation evaluated its provision and allowance for loan losses in light of changes in reserves required for impaired loans, changes in nonperforming loans, and growth in loans outstanding. Note 5 to the consolidated financial statements provides further disclosure of loan balances by portfolio segment as of December 31, 2013 and 2012, as well as the nature and scope of loans modified in a troubled debt restructuring during 2013 and 2012 and the related effect on the provision and allowance for loan losses.

In 2013, an impaired commercial real estate loan was placed on nonaccrual status, resulting in an increase in nonperforming assets of $2.9 million. No loan loss reserve was required for this loan as of December 31, 2012. However, due to a rapid deterioration in the loan collateral value, the Corporation recorded an increase in the provision for loan losses of $1.1 million and concurrently charged off

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$822 thousand of the loan balance. The customer repaid the remaining balance of $2.0 million prior to December 31, 2013. An impaired commercial real estate loan to a related borrower with a carrying value of $1.7 million as of December 31, 2012 was also repaid in 2013, resulting in a chargeoff of $974 and an additional provision for loan losses of $258 thousand. A commercial mortgage loan to a related borrower with a carrying value of $3.3 million defaulted in 2013 and was subsequently modified in a troubled debt restructuring, which will result in the Corporation receiving reduced monthly payments that will be applied entirely to the loan’s principal balance. The Corporation also obtained an updated appraisal for the loan collateral and, as a result, recorded a provision for loan losses of $514 thousand during the year ended December 31, 2013.

A commercial mortgage loan with a balance of $1.1 million that was modified in a troubled debt restructuring prior to 2013 defaulted under its modified terms in 2013, resulting in an increase in the provision for loan losses of $555 thousand.

An impaired commercial and industrial loan with a carrying value of $1.6 million as of December 31, 2012 deteriorated further in 2013, resulting in a chargeoff of $649 thousand and an additional provision for loan losses of $175 thousand.

Unsecured consumer loans to two related borrowers totaling $498 thousand were charged off in the fourth quarter of 2013. An associated loan loss provision of $498 thousand was recorded in the fourth quarter.

The Corporation recorded a loan loss recovery of $1.4 million in the third quarter of 2013 related to an impaired commercial mortgage loan that had been partially charged off prior to January 1, 2013. At the recovery date, the carrying amount of the loan was $5.2 million, which was satisfied in full by the Corporation’s participation in the issuance of a loan at market terms to a new borrower that purchased the property securing the loan.

Finally, the effect of increases in net chargeoffs in 2013 and 2012, as compared to net chargeoffs in 2011, as disclosed in the Summary of Loan Loss Experience table in Item 1, as well as the increase in the Corporation’s loan portfolio in 2013, had a significant impact on the loan loss reserves required for homogeneous loan pools during the year ended December 31, 2013. As disclosed in Note 5 to the consolidated financial statements, the allowance for loan loss balance attributable to loans collectively evaluated for impairment increased from $12.2 million at December 31, 2012 to $14.4 million at December 31, 2013.

Prudent business practices dictate that the level of the allowance, as well as corresponding charges to the provision for loan losses, should be commensurate with identified areas of risk within the loan portfolio and the attendant risks inherent therein. The quality of the credit risk management function and the overall administration of this vital segment of the Corporation’s assets are critical to the ongoing success of the Corporation.

The previously mentioned analysis considered numerous historical and other factors to analyze the adequacy of the allowance and charges against the provision for loan losses. Management paid special attention to a section of the analysis that compared and plotted the actual level of the allowance against the aggregate amount of loans adversely classified in order to compute the estimated probable losses associated with those loans. By noting the “spread” at that time, as well as prior periods, management can evaluate the current adequacy of the allowance as well as evaluate trends that may be developing.

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The volume and composition of the Corporation’s loan portfolio continue to reflect growth in commercial credits including commercial real estate loans.

As mentioned in the “Loans” section of this analysis, management considers commercial lending a competitive advantage and continues to focus on this area as part of its strategic growth initiatives. However, management must also consider the fact that the inherent risk is more pronounced in these types of credits and is also driven by the economic environment of its market areas.

Management believes that both its 2013 provision and allowance for loan losses were reasonable and adequate to absorb probable incurred losses in its portfolio at December 31, 2013.

Bank Owned Life Insurance

The Corporation has periodically purchased Bank Owned Life Insurance (“BOLI”). The policies cover executive officers and a select group of other employees with the Bank being named as beneficiary. Earnings from the BOLI assist the Corporation in offsetting its benefit costs. During the second quarter of 2013, additional BOLI of $2.0 million was purchased. In addition, BOLI with a fair value of $4.0 million was acquired from FC Banc Corp. Proceeds from BOLI death benefits were $1.3 million during the year ended December 31, 2013.

Funding Sources

Although the Corporation considers short-term borrowings and long-term debt when evaluating funding sources, traditional deposits continue to be the main source for funding. As noted in the following table, traditional deposits increased 23.6% during 2013.

	Percentage change 2013 vs. 2012			Percentage change 2012 vs. 2011			2013		2012		2011
Demand, Non interest bearing		26.3	%		14.7	%	$	221,293	$	175,239	$	152,732
Demand, Interest bearing		33.6	%		10.1	%		450,216		336,911		305,960
Savings deposits		18.2	%		21.2	%		898,043		759,910		627,106
Time deposits		24.8	%		(20.6	%)		265,762		212,943		268,053
Total		23.6	%		9.7	%	$	1,835,314	$	1,485,003	$	1,353,851

The growth in deposits of $350.3 million was primarily attributable to the fair value of deposits acquired from FC Banc Corp. of $332.0 million.

Periodically, the Corporation utilizes term borrowings from the Federal Home Loan Bank (FHLB) and other lenders to meet funding obligations or match fund certain loan assets. The terms of these borrowings are detailed in Note 11 to the consolidated financial statements.

Shareholders’ Equity and Capital Ratios and Metrics

The Corporation’s capital continues to provide a base for profitable growth. In 2013, the Corporation earned $16.7 million and declared dividends of $8.6 million, resulting in a dividend payout ratio of 51.4% of net income. During the fourth quarter of 2013, 1,873,879 shares of common stock were issued in connection with the acquisition of FC Banc Corp. The shares were valued at $33.6 million based on the October 11, 2013 closing price of $17.91 per share.

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The Corporation has complied with the standards of capital adequacy mandated by government regulations. Bank regulators have established “risk-based” capital requirements designed to measure capital adequacy. Risk-based capital ratios reflect the relative risks of various assets banks hold in their portfolios. A weight category of 0% (lowest risk assets), 20%, 50%, or 100% (highest risk assets), is assigned to each asset on the balance sheet. The Corporation’s capital ratios and book value per common share at December 31, 2013 and 2012 are as follows:

	2013			2012
Total risk-based capital ratio		13.72	%		15.28	%
Tier 1 capital ratio		12.51	%		14.03	%
Leverage ratio		7.96	%		8.06	%
Tangible common equity/tangible assets (1)		6.34	%		7.63	%
Book value per share	$	11.43		$	11.65
Tangible book value per share (1)	$	9.23			10.77

(1) Tangible common equity, tangible assets and tangible book value per share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of stockholders’ equity. Tangible assets is calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets. Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding. The Corporation believes that these non-GAAP financial measures provide information to investors that is useful in understanding its financial condition. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	December 31, 2013		December 31, 2012
Shareholders’ equity	$	164,911	$	145,364
Less goodwill		27,194		10,946
Less core deposit intangible		4,583		-
Tangible common equity	$	133,134	$	134,418
Total assets	$	2,131,289	$	1,773,079
Less goodwill		27,194		10,946
Less core deposit intangible		4,583		-
Tangible assets	$	2,099,512	$	1,762,133
Ending shares outstanding		14,427,780		12,475,904
Tangible book value per share	$	9.23	$	10.77
Tangible common equity/tangible assets		6.34%		7.63%

The decrease in tangible common equity/tangible assets, book value per share, and tangible book value per share from December 31, 2012 to December 31, 2013 is primarily attributable to the significant decline in the fair value of the Corporation’s available-for-sale investment securities in relation to book value. This decline in fair value of available-for-sale securities was expected given the increases in intermediate and long-term interest rates that occurred in the second and third quarters of 2013.

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The decrease in the Tier 1 and Total risk-based regulatory capital ratios from December 31, 2012 to December 31, 2013 resulted from CNB’s addition of a significant portfolio of commercial real estate loans in the fourth quarter of 2013 in conjunction with its acquisition of FC Banc Corp.

Liquidity

Liquidity measures an organization’s ability to meet its cash obligations as they come due. The consolidated statements of cash flows included in the accompanying financial statements provide analysis of the Corporation’s cash and cash equivalents and the sources and uses of cash. Additionally, the portion of the loan portfolio that matures within one year and securities with maturities within one year in the investment portfolio are considered part of the Corporation’s liquid assets. Liquidity is monitored by both management and the Board’s ALCO, which establishes and monitors ranges of acceptable liquidity. Also, the Bank is a member of FHLB which provides the Bank with a total borrowing line of approximately $414 million with approximately $349 million available at December 31, 2013. Management believes that the Corporation’s current liquidity position is acceptable.

Year Ended December 31, 2013 vs. Year Ended December 31, 2012

Overview of the Income Statement

The Corporation had net income of $16.7 million for 2013 compared to $17.1 million for 2012. Net interest income increased $6.0 million, or 11.3%, and non-interest income increased $1.1 million, or 8.7%. The provision for loan losses decreased by $243 thousand, or 3.8%, and non-interest expenses increased by $7.9 million, or 21.9%. The earnings per diluted share were $1.29 in 2013 and $1.38 in 2012. The return on assets and the return on equity for 2013 are 0.88% and 11.38% as compared to 1.00% and 12.17% for 2012. Non-interest expenses for the year ended December 31, 2013 include $2.4 million associated with merger related expenses. As described in Note 2 to the consolidated financial statements, FC Banc Corp. results of operations were included in the Corporation’s results beginning October 12, 2013.

Interest Income and Expense

Net interest margin on a fully tax equivalent basis was 3.46% for the year ended December 31, 2013, compared to 3.49% for the year ended December 31, 2012. Total interest and dividend income increased by $3.3 million, or 4.8%, as compared to 2012. Although the Corporation’s earning assets continue to grow, these increases have been offset by decreases in the yield on earning assets as a result of the current interest rate environment. The Corporation’s average earning assets increased by $175.4 million for the year ended December 31, 2013 while the yield during that time decreased by 28 basis points from 4.42% to 4.14%. Total interest expense decreased $2.7 million, or 18.2%, for the year ended December 31, 2013 as compared to the comparable period in 2012 as a result of the Corporation’s focus on deposit mix and active management of deposit rates. The cost of interest bearing deposits decreased by 29 basis points, which offset the increase in average interest bearing deposits of $146.4 million.

43

Provision for Loan Losses

The Corporation recorded a provision for loan losses of $6.1 million in 2013 compared to $6.4 million in 2012. Net loan charge-offs were $4.0 million during the year ended December 31, 2013 compared to $4.9 million during the year ended December 31, 2012. As disclosed in the Allowance for Loan Losses section of Management’s Discussion and Analysis, the Corporation recorded the provision for loan losses based on management’s evaluation of impaired loans and also recorded a significant loan loss recovery for a commercial mortgage loan.

Management believes the charges to the provision in 2013 are appropriate and the allowance for loan losses is adequate to absorb probable incurred losses in our portfolio as of December 31, 2013.

Non-Interest Income

Non-interest income was $13.8 million for the year ended December 31, 2013, compared to $12.7 million for the year ended December 31, 2012. Net realized gains on available-for-sale securities were $355 thousand during the year ended December 31, 2013, compared to $1.4 million during the year ended December 31, 2012. Net realized and unrealized gains on trading securities were $728 thousand and $564 thousand during the years ended December 31, 2013 and 2012, respectively.

During the year ended December 31, 2013, the Corporation recorded $1.6 million in income from bank owned life insurance policies, including $576 thousand representing the excess of the face value of certain policies over their cash surrender values resulting from the maturity of the policies.

Wealth and asset management fees increased from $1.8 million during the year ended December 31, 2012 to $2.4 million during the year ended December 31, 2013 due to increases in assets under management resulting from the Corporation’s strategic focus to grow its Wealth and Asset Management Division.

Non-Interest Expense

Total non-interest expenses increased $7.9 million, or 21.9%, during the year ended December 31, 2013 compared to the year ended December 31, 2012. Merger costs associated with the Corporation’s acquisition of FC Banc Corp. were expensed as incurred and totaled $2.4 million during the year ended December 31, 2013. Salaries and benefits expenses increased $2.8 million, or 14.9%, during the year ended December 31, 2013 compared to the year ended December 31, 2012, in part due to routine merit increases, an increase in average full-time equivalent employees, and increases in certain employee benefit expenses, such as health insurance costs, which continue to increase in line with market conditions. Net occupancy expenses increased $855 thousand, or 18.4%, during year ended December 31, 2013 compared to the year ended December 31, 2012, as a result of anticipated increases in repair, maintenance, and utility expenses, as well as increases in depreciation expense for recently completed projects and asset purchases.

Year Ended December 31, 2012 vs. Year Ended December 31, 2011

Overview of the Income Statement

The Corporation had net income of $17.1 million for 2012 compared to $15.1 million for 2011. The increase in net income is attributable to an increase in net interest income of $5.1 million, or 10.5%, as

44

well as an increase in non-interest income of $1.8 million, or 17.2%. The provision for loan losses increased by $1.4 million, or 29.2%, and non-interest expenses increased by $2.7 million, or 8.0%, from 2012 to 2011. The earnings per diluted share increased from $1.23 in 2011 to $1.38 in 2012. The return on assets and the return on equity for 2012 are 1.00% and 12.17% as compared to 1.00% and 12.36% for 2011.

Interest Income and Expense

Net interest margin on a fully tax equivalent basis was 3.49% for the year ended December 31, 2012, compared to 3.59% for the year ended December 31, 2011. Total interest and dividend income increased by $2.4 million, or 3.7%, as compared to 2011. Although the Corporation’s earning assets continue to grow, these increases have been offset by decreases in the yield on earning assets as a result of the current interest rate environment. The Corporation’s average earning assets increased by $209.6 million for the year ended December 31, 2012 while the yield during that time decreased by 42 basis points from 4.84% to 4.42%. Total interest expense decreased $2.7 million, or 15.1%, for the year ended December 31, 2012 as compared to the comparable period in 2011 as a result of the Corporation’s focus on deposit mix and active management of deposit rates. The cost of interest bearing deposits decreased by 37 basis points, which offset the increase in average interest bearing deposits of $162.8 million.

Provision for Loan Losses

The Corporation recorded a provision for loan losses of $6.4 million in 2012 compared to $4.9 million in 2011. Net loan chargeoffs were $4.9 million during the year ended December 31, 2012 compared to $3.1 million during the year ended December 31, 2011. As disclosed in the Allowance for Loan Losses section of Management’s Discussion and Analysis, the Corporation increased the provision for loan losses as a result of management’s evaluation of impaired loans as well as an evaluation of general reserves required for loans that are not impaired.

Management believes the charges to the provision in 2012 are appropriate and the allowance for loan losses is adequate to absorb probable incurred losses in our portfolio as of December 31, 2012.

Non-Interest Income

Excluding the effects of the securities transactions described below, non-interest income was $10.7 million for the year ended December 31, 2012, compared to $10.4 million for the year ended December 31, 2011. Net realized gains on available-for-sale securities were $1.4 million during the year ended December 31, 2012, compared to $614 thousand during the year ended December 31, 2011. Net realized and unrealized gains on securities for which fair value was elected were $461 thousand and $64 thousand during the years ended December 31, 2012 and 2011, respectively. An other-than-temporary impairment charge of $398 thousand was recorded in earnings on structured pooled trust preferred securities during the year ended December 31, 2011.

Non-Interest Expense

Total non-interest expenses increased $2.7 million, or 8.0%, during the year ended December 31, 2012 compared to the year ended December 31, 2011. Salaries and employee benefit expenses combined to increase $1.6 million, or 9.3%, during the year ended December 31, 2012 compared to the year ended

45

December 31, 2011, in part due to routine merit increases, an increase in full-time equivalent employees from 300 at December 31, 2011 to 323 at December 31, 2012, and increases in certain employee benefit expenses, such as health insurance costs, which continue to increase in line with market conditions. The remaining non-interest expenses increased $1.1 million, or 6.6%, as a result of CNB’s continued growth.

Total non-interest expenses on an annualized basis in relation to CNB’s average asset size declined from 2.20% for the year ended December 31, 2011 to 2.10% for the year ended December 31, 2012.

Income Tax Expense

Income taxes were $6.3 million in 2013, compared to $6.4 million in 2012 and $5.5 million in 2011. The effective tax rates were 27.5%, 27.2%, and 26.8% for 2013, 2012 and 2011, respectively. The effective tax rate for the periods differed from the federal statutory rate of 35.0% principally as a result of tax-exempt income from securities and loans as well as earnings from bank owned life insurance.

Contractual Obligations and Commitments

The Corporation has various financial obligations, including contractual obligations and commitments that may require future cash payments. The following table presents, as of December 31, 2013, significant fixed and determinable contractual obligations to third parties by payment date. Further discussion of the nature of each obligation is included in the referenced note to the consolidated financial statements.

	Payments Due In
(dollars in thousands)	Note Reference		One Year or Less		One to Three Years		Three to Five Years		Over Five Years		Total
Deposits without a stated maturity			$	1,569,552		0		0		0	$	1,569,552
Certificates of deposit		10		122,126		83,980		47,651		12,005		265,762
FHLB and other borrowings		11		13,159		20,445		50,483		3,863		87,950
Operating leases		7		626		1,183		612		1,168		3,589
Sale-leaseback		7		112		224		224		893		1,453
Subordinated debentures		11		0		0		0		20,620		20,620

The Corporation’s operating lease obligations represent short and long-term lease and rental payment for facilities. The Corporation’s sale-leaseback obligation represents a long-term real estate lease associated with one of the Corporation’s branch office locations.

The Corporation also has obligations under its postretirement plan for health care and supplemental executive retirement plan as described in Note 14 to the consolidated financial statements. The postretirement benefit payments represent actuarially determined future benefit payments to eligible plan participants. The supplemental executive retirement plan allocates expenses over the participant’s service period. The Corporation reserves the right to terminate these plans at any time.

Off-Balance Sheet Arrangements

See Note 19 to the consolidated financial statements for information about our off-balance sheet arrangements.

46

Applications of Critical Accounting Policies

The Corporation’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. and follow general practices within the industries in which the Corporation operates. Application of these principles requires management to make estimates or judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates are based on information available as of the date of the financial statements; accordingly, as this information changes, the financial statements could reflect different estimates or judgments. Certain policies inherently have a greater reliance on the use of estimates, and as such have a greater possibility of producing results that could be materially different than originally reported. Estimates or judgments are necessary when assets and liabilities are required to be recorded at fair value, when a decline in the value of an asset not carried on the financial statements at fair value warrants an impairment write-down or valuation reserve to be established, or when an asset or liability needs to be recorded contingent upon a future event. Carrying assets and liabilities at fair value inherently results in more financial statement volatility. The fair values and the information used to record valuation adjustments for certain assets and liabilities are based either on quoted market prices or are provided by other third party sources, when available. When third-party information is not available, valuation adjustments are estimated in good faith by management primarily through the use of internal cash flow modeling techniques.

The most significant accounting policies used by the Corporation are presented in Note 1 to the consolidated financial statements. These policies, along with the disclosures presented in the other financial statement notes and in this financial review, provide information on how significant assets and liabilities are valued in the financial statements and how those values are determined. Management views critical accounting policies to be those which are highly dependent on subjective or complex judgments, estimates and assumptions, and where changes in those estimates and assumptions could have a significant impact on the financial statements.

A material estimate that is susceptible to significant change is the determination of the allowance for loan losses. The Corporation’s methodology for determining the allowance for loan losses is described previously in Management’s Discussion and Analysis. Given the subjective nature of identifying and valuing loan losses, it is likely that well-informed individuals could make materially different assumptions and could therefore calculate a materially different allowance value. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in future years. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Corporation’s allowance for loan losses. Such agencies may require the Corporation to recognize adjustments to the allowance based on their judgments of information available to them at the time of their examination.

Another material estimate is the calculation of fair values of the Corporation’s debt securities. For most of the Corporation’s debt securities, the Corporation receives estimated fair values from an independent valuation service or from brokers. In developing fair values, the valuation service and the brokers use estimates of cash flows, based on historical performance of similar instruments in similar interest rate environments. Based on experience, management is aware that estimated fair values of debt securities tend to vary among brokers and other valuation services.

Finally, the fair value of assets acquired and liabilities assumed in connection with the acquisition of FC Banc Corp., including the associated goodwill that was recorded, required the use of material estimates. Specifically, the fair values of loans, the core deposit intangible asset, premises and equipment, and time

47

deposits were susceptible to estimation and management’s judgment about real estate and equipment values, as well as the amount and timing of future cash flows associated with loans and deposits.

ITEM 7A  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a financial institution, the Corporation’s primary source of market risk is interest rate risk, which is the exposure to fluctuations in the Corporation’s future earnings resulting from changes in interest rates. This exposure is correlated to the repricing characteristics of the Corporation’s portfolio of assets and liabilities. Each asset or liability reprices either at maturity or during the life of the instrument.

The principal purpose of asset/liability management is to maximize current and future net interest income within acceptable levels of interest rate risk while satisfying liquidity and capital requirements. Net interest income is enhanced by increasing the net interest margin and by the growth in earning assets. As a result, the primary goal of interest rate risk management is to maintain a balance between risk and reward such that net interest income is maximized while risk is maintained at an acceptable level.

The Corporation uses an asset-liability management model to measure the effect of interest rate changes on its net interest income. The Corporation’s management also reviews asset-liability maturity gap and repricing analyses regularly. The Corporation does not always attempt to achieve a precise match between interest sensitive assets and liabilities because it believes that an actively managed amount of interest rate risk is inherent and appropriate in the management of the Corporation’s profitability.

Asset-liability modeling techniques and simulation involve assumptions and estimates that inherently cannot be measured with precision. Key assumptions in these analyses include maturity and repricing characteristics of assets and liabilities, prepayments on amortizing assets, non-maturing deposit sensitivity, and loan and deposit pricing. These assumptions are inherently uncertain due to the timing, magnitude, and frequency of rate changes and changes in market conditions and management strategies, among other factors. However, the analyses are useful in quantifying risk and provide a relative gauge of the Corporation’s interest rate risk position over time.

Management reviews interest rate risk on a quarterly basis and reports to the ALCO. This review includes earnings shock scenarios whereby interest rates are immediately increased and decreased by 100, 300, and 400 basis points. These scenarios, detailed in the table below, indicate that there would not be a significant variance in net interest income over a one-year period due to interest rate changes; however, actual results could vary significantly. At December 31, 2013 and 2012, all interest rate risk levels according to the model were within the tolerance limits of ALCO approved policy. In addition, the table does not take into consideration changes that management would make to realign its assets and liabilities in the event of an unexpected changing interest rate environment. Due to the historically low interest rate environment, the -300 and -400 scenarios have been excluded from the table.

December 31, 2013				December 31, 2012
Change in Basis Points	% Change in Net Interest Income			Change in Basis  Points			% Change in Net Interest Income
400		-6.2	%		400			-0.5	%
300		-3.8	%		300			-0.8	%
100		-0.1	%		100			2.3	%
(100)		-3.7	%		(100	)		-4.0	%

48

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

CONSOLIDATED BALANCE SHEETS

Dollars in thousands, except share data

	December 31,
	2013			2012
ASSETS
Cash and due from banks	$	25,769		$	28,570
Interest bearing deposits with other banks		3,864			3,311
Total cash and cash equivalents		29,633			31,881
Interest bearing time deposits with other banks		275			225
Securities available for sale		685,991			737,311
Trading securities		4,127			4,459
Loans held for sale		487			2,398
Loans		1,299,259			931,225
Less: unearned discount		(3,896	)		(3,401	)
Less: allowance for loan losses		(16,234	)		(14,060	)
Net loans		1,279,129			913,764
FHLB and other equity interests		7,533			6,684
Premises and equipment, net		31,589			24,072
Bank owned life insurance		33,804			27,645
Mortgage servicing rights		904			714
Goodwill		27,194			10,946
Core deposit intangible		4,583			-
Accrued interest receivable and other assets		26,040			12,980
Total Assets	$	2,131,289		$	1,773,079
LIABILITIES AND SHAREHOLDERS’ EQUITY
Non-interest bearing deposits	$	221,293		$	175,239
Interest bearing deposits		1,614,021			1,309,764
Total deposits		1,835,314			1,485,003
FHLB and other long-term borrowings		75,000			74,296
Other short-term borrowings		12,950			23,510
Subordinated debentures		20,620			20,620
Accrued interest payable and other liabilities		22,494			24,286
Total liabilities		1,966,378			1,627,715
Common stock, $0 par value; authorized 50,000,000 shares; issued 14,473,482 shares at December 31, 2013 and 12,599,603 shares at December 31, 2012		0			0
Additional paid in capital		77,923			44,223
Retained earnings		97,066			88,960
Treasury stock, at cost (45,702 shares for 2013 and 123,699 for 2012)		(633	)		(1,743	)
Accumulated other comprehensive income (loss)		(9,445	)		13,924
Total shareholders’ equity		164,911			145,364
Total Liabilities and Shareholders’ Equity	$	2,131,289		$	1,773,079

See Notes to Consolidated Financial Statements

49

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Dollars in thousands, except per share data

	Year ended December 31,
	2013			2012			2011
Interest and Dividend Income:
Loans including fees	$	53,927		$	49,760		$	48,324
Securities:
Taxable		13,456			14,688			14,395
Tax-exempt		3,828			3,595			2,957
Dividends		205			86			36
Total interest and dividend income		71,416			68,129			65,712
Interest Expense:
Deposits		7,995			10,875			13,625
Borrowed funds		3,447			3,245			3,176
Subordinated debentures (includes $400, $390, and $402 accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements in 2013, 2012, and 2011)		770			800			778
Total interest expense		12,212			14,920			17,579
Net Interest Income		59,204			53,209			48,133
Provision for Loan Losses		6,138			6,381			4,937
Net Interest Income After Provision for Loan Losses		53,066			46,828			43,196
Non-Interest Income:
Wealth and asset management fees		2,426			1,819			1,691
Service charges on deposit accounts		4,272			4,106			4,233
Other service charges and fees		2,179			1,868			1,626
Net realized gains on trading securities		579			298			30
Net unrealized gains on trading securities		149			266			34
Mortgage banking		940			990			735
Bank owned life insurance		1,552			973			930
Other		1,314			965			1,224
		13,411			11,285			10,503
Total other-than-temporary impairment losses on available-for-sale securities		0			0			(398	)
Less portion of loss recognized in other comprehensive income		0			0			0
Net impairment losses recognized in earnings		0			0			(398	)
Net realized gains on available-for-sale securities (includes $355, $1,379, and $614 accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities in 2013, 2012, and 2011)		355			1,379			614
Net impairment losses recognized in earnings and realized gains on available-for-sale securities		355			1,379			216
Total non-interest income		13,766			12,664			10,719
Non-Interest Expenses:
Salaries		15,467			13,106			12,349
Employee benefits		6,250			5,787			4,936
Net occupancy expense		5,506			4,651			4,416
Amortization of core deposit intangible		251			0			0
Data processing		3,469			2,791			2,754
State and local taxes		1,549			1,474			1,275
Legal, professional and examination fees		1,318			1,265			956
Advertising		939			859			822
FDIC insurance		1,266			1,115			1,259
Directors fees and benefits		776			666			591
Merger costs		2,396			0			0
Other		4,626			4,231			3,924
Total non-interest expenses		43,813			35,945			33,282
Income Before Income Taxes		23,019			23,547			20,633
Income Tax Expense (includes ($16), $346, and $74 income tax expense reclassification items in 2013, 2012, and 2011)		6,340			6,411			5,529
Net Income		16,679			17,136			15,104
Other Comprehensive Income (Loss):
Net change in unrealized gains/losses on available-for-sale securities, net of reclassification and tax		(23,675	)		3,561			14,441
Change in actuarial gain, net of amortization and tax, for post-employment health care plan, net of tax		(103	)		(349	)		(485	)
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of tax		409			(49	)		(522	)
Total other comprehensive income (loss)		(23,369	)		3,163			13,434
Comprehensive Income (Loss)	$	(6,690	)	$	20,299		$	28,538
Earnings Per Share:
Basic	$	1.29		$	1.38		$	1.23
Diluted		1.29			1.38			1.23

See Notes to Consolidated Financial Statements

50

CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in thousands

	Year ended December 31,
	2013			2012			2011
Cash Flows From Operating Activities:
Net income	$	16,679		$	17,136		$	15,104
Adjustments to reconcile net income to net cash provided by operations:
Provision for loan losses		6,138			6,381			4,937
Depreciation and amortization of premises and equipment, core deposit intangible, and mortgage servicing rights		2,641			2,225			2,075
Amortization and accretion of securities premiums and discounts, deferred loan fees and costs, net yield and credit mark on acquired loans, and unearned income		3,541			4,509			2,786
Deferred taxes		(977	)		(240	)		441
Net impairment losses realized in earnings and realized gains on sales of available-for-sale securities		(355	)		(1,379	)		(216	)
Net realized and unrealized gains on trading securities		(728	)		(564	)		(64	)
Proceeds from sale of trading securities		5,811			3,386			343
Purchase of trading securities		(4,671	)		(4,187	)		(1,266	)
Gain on sale of loans		(808	)		(927	)		(638	)
Net gains on dispositions of premises and equipment and foreclosed assets		(252	)		(158	)		(104	)
Proceeds from sale of loans		22,252			32,512			23,324
Origination of loans held for sale		(19,883	)		(32,626	)		(19,927	)
Income on bank owned life insurance		(1,552	)		(973	)		(930	)
Stock-based compensation expense		390			277			213
Contribution of treasury stock		120			120			120
Changes in:
Accrued interest receivable and other assets		(3,124	)		(455	)		(1,342	)
Accrued interest payable and other liabilities		8,387			2,523			5,529
Net Cash Provided By Operating Activities		33,609			27,560			30,385
Cash Flows from Investing Activities:
Net (increase) decrease in interest bearing time deposits with other banks		(50	)		(1	)		2,593
Proceeds from maturities, prepayments and calls of available-for-sale securities		139,863			109,673			101,178
Proceeds from sales of available-for-sale securities		35,633			125,579			69,740
Purchase of available-for-sale securities		(130,412	)		(332,155	)		(288,757	)
Loan origination and payments, net		(124,155	)		(82,393	)		(58,552	)
Purchase of bank owned life insurance		(2,000	)		(1,000	)		(5,000	)
Proceeds from death benefits associated with bank owned life insurance		1,348			0			0
Net cash acquired from FC Banc Corp.		46,982			0			0
Acquisition of consumer discount company		0			(1,248	)		0
Redemption (purchase) of FHLB and other equity interests		940			(147	)		(122	)
Purchase of premises and equipment		(5,336	)		(2,016	)		(1,705	)
Proceeds from the sale of premises and equipment and foreclosed assets		735			1,088			257
Net Cash Used In Investing Activities		(36,452	)		(182,620	)		(180,368	)
Cash Flows From Financing Activities:
Net change in:
Checking, money market and savings accounts		48,680			186,262			292,369
Certificates of deposit		(30,395	)		(55,110	)		(101,386	)
Proceeds from sale of treasury stock		41			526			1,188
Proceeds from exercise of stock options		698			424			259
Cash dividends paid		(8,573	)		(8,214	)		(8,125	)
Proceeds from long-term borrowings		900			0			700
Repayments on long-term borrowings		(196	)		(160	)		(133	)
Net change in short-term borrowings		(10,560	)		23,510			(32,618	)
Net Cash Provided By Financing Activities		595			147,238			152,254
Net (Decrease) Increase in Cash and Cash Equivalents		(2,248	)		(7,822	)		2,271
Cash and Cash Equivalents, Beginning		31,881			39,703			37,432
Cash and Cash Equivalents, Ending	$	29,633		$	31,881		$	39,703
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest	$	12,283		$	15,205		$	17,937
Income taxes		5,529			7,548			3,991
Supplemental Noncash Disclosures:
Transfers to other real estate owned	$	1,151		$	750		$	249
Grant of restricted stock awards from treasury stock		539			419			266
Net liabilities assumed from FC Banc Corp., excluding cash and cash equivalents		29,669			0			0
Fair value of common stock issued in connection with acquisition of FC Banc Corp.		33,561			0			0

See Notes to Consolidated Financial Statements

51

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2013, 2012, AND 2011

Dollars in thousands, except share and per share data

	Additional Paid-In Capital			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total Share- holders’ Equity
Balance, January 1, 2011	$	44,676		$	73,059		$	(5,417	)	$	(2,673	)	$	109,645
Net income					15,104									15,104
Other comprehensive income											13,434			13,434
Restricted stock award grants (17,900 shares)		(266	)					266
Forfeiture of restricted stock award grants (1,488 shares)		22						(22	)
Exercise of stock options (28,750 shares), including tax benefit		(133	)					443						310
Stock based compensation expense		213												213
Reissue of treasury stock (94,895 shares)		(162	)					1,470						1,308
Cash dividends declared ($0.66 per share)					(8,125	)								(8,125	)
Balance, December 31, 2011		44,350			80,038			(3,260	)		10,761			131,889
Net income					17,136									17,136
Other comprehensive income											3,163			3,163
Restricted stock award grants (26,900 shares)		(419	)					419
Exercise of stock options (31,875 shares), including tax benefit		(27	)					491						464
Stock based compensation expense		277												277
Reissue of treasury stock (39,811 shares)		42						607						649
Cash dividends declared ($0.66 per share)					(8,214	)								(8,214	)
Balance, December 31, 2012		44,223			88,960			(1,743	)		13,924			145,364
Net income					16,679									16,679
Other comprehensive loss											(23,369	)		(23,369	)
Common stock issued in acquisition (1,873,879 shares)		33,561												33,561
Restricted stock award grants (31,500 shares)		(471	)					471
Exercise of stock options (40,000 shares), including tax benefit		182						551						733
Stock based compensation expense		390												390
Reissue of treasury stock (6,497 shares)		38						88						126
Cash dividends declared ($0.66 per share)					(8,573	)								(8,573	)
Balance, December 31, 2013	$	77,923		$	97,066		$	(633	)	$	(9,445	)	$	164,911

See Notes to Consolidated Financial Statements

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Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

1.  Summary of Significant Accounting Policies

Unless otherwise indicated, dollar amounts are in thousands, except per share data.

Business and Organization

CNB Financial Corporation (the “Corporation”) is headquartered in Clearfield, Pennsylvania, and provides a full range of banking and related services through its wholly owned subsidiary, CNB Bank (the “Bank”). In addition, the Bank provides trust and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans as well as a full range of wealth management services. The Bank serves individual and corporate customers and is subject to competition from other financial institutions and intermediaries with respect to these services. In addition to the Bank, the Corporation also operates a consumer discount loan and finance business through its wholly owned subsidiary, Holiday Financial Services Corporation (“Holiday”). The Corporation and these and its other subsidiaries are subject to examination by federal and state regulators. The Corporation’s market area is primarily concentrated in the central and northwest regions of the Commonwealth of Pennsylvania and in the central region of the state of Ohio.

Basis of Financial Presentation

The financial statements are consolidated to include the accounts of the Corporation and the Bank, CNB Securities Corporation, Holiday, County Reinsurance Company, and CNB Insurance Agency. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Use of Estimates

To prepare financial statements in conformity with accounting principles generally accepted in the U.S., management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, carrying value of goodwill, mortgage servicing rights, fair value of assets acquired and liabilities assumed in connection with business combinations and fair values of securities and other financial instruments are particularly subject to change.

Operating Segments

While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Corporation-wide basis, and operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

Interest Bearing Time Deposits with Other Banks

Interest-bearing deposits in other financial institutions mature within one year and are carried at cost.

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Securities

When purchased, securities are classified as held to maturity, trading or available for sale. Debt securities are classified as held to maturity when the Corporation has the positive intent and ability to hold the securities to maturity. Held to maturity securities are carried at amortized cost. Debt or equity securities are classified as trading when purchased principally for the purpose of selling them in the near term, or when the fair value option has been elected. Trading securities are recorded at fair value with changes in fair value included in earnings in non-interest income. Available for sale securities are those securities not classified as held to maturity or trading and are carried at their fair value. Unrealized gains and losses, net of deferred tax, on securities classified as available for sale are recorded as other comprehensive income. Management has not classified any debt securities as held to maturity.

The amortized cost of debt securities classified as held to maturity or available for sale is adjusted for the amortization of premiums and the accretion of discounts over the period through contractual maturity or, in the case of mortgage-backed securities and collateralized mortgage obligations, over the estimated life of the security. Such amortization is included in interest income from securities. Gains and losses on securities sold are recorded on the trade date and based on the specific identification method.

Declines in the fair value of debt securities below their cost that are other than temporary and attributable to credit losses are reflected in earnings. Other-than-temporary impairment losses that are not attributable to credit losses are reported as a component of accumulated other comprehensive income. In estimating other-than-temporary losses, management considers: the length of time and extent that fair value has been less than cost, the financial condition and near term prospects of the issuer, and the Corporation’s intent to sell, or whether it is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. If the Corporation intends to sell a security or it is more likely than not it will be required to sell a security before recovery of its amortized cost basis, the entire difference between amortized cost and fair value is recognized as impairment through earnings.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding.

Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Interest income on commercial, industrial, and agricultural loans, commercial mortgage loans, and residential real estate loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Consumer loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. Loans, including loans modified in a troubled debt restructuring, are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

All interest accrued but not received on loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until

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qualifying for return to accrual. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Concentration of Credit Risk

Most of the Corporation’s business activity is with customers located within the Commonwealth of Pennsylvania and the state of Ohio. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economies of Pennsylvania and Ohio.

Purchased Credit Impaired Loans

The Corporation purchased loans in connection with its acquisition of FC Banc Corp. in 2013, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses.

Such purchased credit impaired loans are accounted for individually, and the Corporation estimates the amount and timing of expected cash flows for each loan. The expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of the expected cash flows is greater than the carrying amount, it is recognized as part of future interest income.

For loans purchased that did not show evidence of credit deterioration, the difference between the fair value of the loan at the acquisition date and the loan’s face value is being amortized as a yield adjustment over the estimated remaining life of the loan using the effective interest method.

Loans Held for Sale

Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Allowance for Loan Losses

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance account.

Management determines the adequacy of the allowance based on historical patterns of charge-offs and recoveries, the nature and volume of the portfolio, information about specific borrower situations and

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estimated collateral values, industry experience, economic conditions, and other qualitative factors relevant to the collectability of the loan portfolio. While management believes that the allowance is adequate to absorb probable loan losses incurred at the balance sheet date, future adjustments may be necessary due to circumstances that differ substantially from the assumptions used in evaluating the adequacy of the allowance for loan losses.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or doubtful. A loan is impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired.

Commercial and commercial real estate loans are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Corporation over the most recent 2 years. This actual loss experience is supplemented with other factors based on the risks present for each portfolio segment. These historical loss factors include consideration of the following: levels of and trends in delinquencies, non-accrual loans, and classified loans; trends in volume and terms of loans; effects of any changes in lending policies and procedures; experience, ability, and depth of management; national and local economic trends and conditions; and concentrations of credit.

The following portfolio segments, which are the same as the Corporation’s portfolio classifications and associated risk characteristics, have been identified:

— Commercial, industrial, and agricultural – risk characteristics include recession-like economic conditions in many of the markets served by the Corporation and high levels of unemployment, which has caused consumer spending to slow.

— Commercial mortgages – the most significant risk characteristic is the subjectivity involved in real estate valuations for properties located in areas with stagnant or low growth economies.

— Residential real estate – risk characteristics include higher than historical levels of delinquencies and a weakened housing market.

— Consumer – risk characteristics include continuing weakness in industrial employment in many of the markets served by the Corporation and inflation.

— Credit cards – the most significant risk characteristic is the unsecured nature of credit card loans.

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— Overdrafts – risk characteristics include the Corporation’s continued deposit growth and overall economic conditions which may lead to a greater likelihood of overdrawn deposit accounts.

Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Premiums and discounts recognized on acquired loans are recognized in earnings using the interest method. Credit losses on the acquired loan portfolio will be charged against the allowance for loan losses as incurred.

Federal Home Loan Bank (FHLB) Stock

As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Corporation is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants.

FHLB stock is held as a long-term investment, is valued at its cost basis and is analyzed for impairment based on the ultimate recoverability of the par value. The Company evaluates impairment quarterly. The decision of whether impairment exists is a matter of judgment that reflects our view of the FHLB’s long-term performance, which includes factors such as the following:

— its operating performance;

— the severity and duration of declines in the fair value of its net assets related to its capital stock amount;

— its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance;

— the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of FHLB; and

— its liquidity and funding position.

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation. Depreciation of premises and equipment is computed principally by the straight line method. In general, useful lives range from 3 to 39 years with lives for furniture, fixtures and equipment ranging from 3 to 10 years and lives of buildings and building improvements ranging from 15 to 39 years. Amortization of leasehold improvements is computed using the straight-line method over useful lives of the leasehold improvements or the term of the lease, whichever is shorter. Maintenance, repairs and minor renewals are charged to expense as incurred.

Foreclosed Assets

Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis, and are them carried at the lower of cost or fair value. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed.

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Bank Owned Life Insurance

The Corporation has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets

Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate an impairment test should be performed.

The Corporation has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives. Goodwill is the only intangible asset with an indefinite life on the Corporation’s balance sheet. Other intangible assets consist of a core deposit intangible asset arising from the acquisition of FC Banc Corp. in 2013. The core deposit intangible asset is amortized using an accelerated method over its estimated useful life of 7 years.

Long-term Assets

Premises and equipment, goodwill and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Derivatives

Derivative financial instruments are recognized as assets or liabilities at fair value. The Corporation has interest rate swap agreements which are used as part of its asset liability management to help manage interest rate risk. The Corporation does not use derivatives for trading purposes.

At the inception of a derivative contract, the Corporation designates the derivative as one of three types based on the purpose of the contract and belief as to its effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be

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received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Corporation formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Corporation also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Corporation discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

Advertising Costs

Advertising costs are generally expensed as incurred and amounted to $939, $859, and $822, for 2013, 2012 and 2011 respectively.

Mortgage Servicing Rights

Servicing rights are recognized separately when they are acquired through sales of loans. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the

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custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Corporation compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material.

Treasury Stock

The purchase of the Corporation’s common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a first-in-first-out basis.

Stock-Based Compensation

The Corporation has a stock incentive plan for key employees and independent directors. The Stock Incentive Plan, which is administered by a committee of the Board of Directors, provides for up to 500,000 shares of common stock in the form of nonqualified options or restricted stock. For key employees, the plan vesting schedule is one-fourth of granted stock-based awards per year beginning one year after the grant date with 100% vested on the fourth anniversary. For independent directors, the vesting schedule is one-third of granted stock-based awards per year beginning one year after the grant date with 100% vested on the third anniversary.

At December 31, 2013 and 2012, there was no unrecognized compensation cost related to nonvested stock options granted under this plan, and no stock options were granted during the years then ended.

During 2013, 2012 and 2011, the Executive Compensation and Personnel Committee of the Board of Directors granted a total of 31,500, 26,900 and 17,900 shares, respectively, of restricted common stock to certain key employees and all independent directors of the Corporation. Compensation expense for the restricted stock awards is recognized over the requisite service period based on the fair value of the shares at the date of grant on a straight-line basis. Unearned restricted stock awards are recorded as a

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reduction of shareholders’ equity until earned. Compensation expense resulting from these restricted stock awards was $390, $277 and $213 for the years ended December 31, 2013, 2012 and 2011, respectively.

Comprehensive Income

The Corporation presents comprehensive income as part of the Consolidated Statement of Income and Comprehensive Income. Other comprehensive income (loss) consists of unrealized holding gains (losses) on the available for sale securities portfolio, changes in the unrecognized actuarial gain and transition obligation related to the Corporation’s post retirement benefits plans, and changes in the fair value of the Corporation’s interest rate swaps.

Income Taxes

The Corporation files a consolidated U.S. income tax return that includes all subsidiaries except County Reinsurance Company which files a separate return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans

The Corporation’s expense associated with its 401(k) plan is determined under the provisions of the plan document and includes both matching and profit sharing components. Deferred compensation and supplemental retirement plan expenses allocate the benefits over years of service.

Earnings Per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested stock awards are participating securities.

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Cash and Cash Equivalents

For purposes of the consolidated statement of cash flows, the Corporation defines cash and cash equivalents as cash and due from banks, interest bearing deposits with other banks, and Federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing time deposits with other banks and borrowings with original maturities of 90 days or less.

Restrictions on Cash

The Bank is required to maintain average reserve balances with the Federal Reserve Bank or in vault cash. The average amount of these non-interest bearing reserve balances for the year ended December 31, 2013 and 2012, was $50, which was maintained in vault cash. Note 12 to the consolidated financial statements discloses the cash collateral balances required to be maintained in connection with the Corporation’s interest rate swaps.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements.

Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Adoption of New Accounting Standards

In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02). ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about these amounts. The effect of adopting ASU 2013-02 did not have a material effect on the Corporation’s financial statements.

In July 2013, the FASB issued Accounting Standards Update 2013-10, “Derivatives and Hedging (Topic 815), Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes” (ASU 2013-10). ASU 2013-10 was issued to permit the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting

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purposes under Topic 815, in addition to direct Treasury obligations of the U.S. Government and the London Interbank Offered Rate (LIBOR) swap rate. ASU 2013-10 is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material effect on the Corporation’s financial statements.

Effect of Newly Issued But Not Yet Effective Accounting Standards

In February 2013, the FASB issued Accounting Standards Update 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date” (ASU 2013-04). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. ASU 2013-04 is effective for reporting periods beginning after December 15, 2013. The effect of adopting ASU 2013-04 is not expected to have a material effect on the Corporation’s financial statements.

In July 2013, the FASB issued Accounting Standards Update 2013-11, “Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11). ASU 2013-11 was issued to clarify the financial presentation of unrecognized tax benefits in the instances described. ASU 2013-11 is effective for reporting periods beginning after December 15, 2013. The effect of adopting ASU 2013-11 is not expected to have a material effect on the Corporation’s financial statements.

In January 2014, the FASB issued Accounting Standards Update 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40)” (ASU 2014-04). The amendments in ASU 2014-04 clarify the circumstances under which an in substance repossession or foreclosure occurs and when a creditor is considered to have received physical possession of a residential real estate property collateralizing a residential real estate loan. The amendments in ASU 2014-04 also require interim and annual disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU 2014-04 is effective for reporting periods beginning after December 15, 2014. The effect of adopting ASU 2014-04 is not expected to have a material effect on the Corporation’s financial statements.

Reclassifications

Certain prior year amounts have been reclassified for comparative purposes.

2.  Business Combination

In the first quarter of 2013, the Corporation announced the signing of a definitive merger agreement to acquire 100% of the outstanding equity interests of FC Banc Corp. and its subsidiary, Farmers Citizens Bank, for $30.00 per share in cash and stock. Farmers Citizens Bank served the central Ohio markets of Bucyrus, Cardington, Fredericktown, Mount Hope and Shiloh, as well as the markets of Worthington and Upper Arlington in the greater Columbus, Ohio area, with 8 branch locations. The transaction closed on October 11, 2013 and resulted in consideration paid to FC Banc Corp. shareholders totaling approximately $41.6 million, comprised of approximately $8.0 million in cash and 1,873,879 shares of the Corporation’s common stock valued at approximately $33.6 million based on the October 11, 2013 closing price of $17.91 per share. FC Banc Corp. results of operations were included in the Corporation’s results beginning October 12, 2013.

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The Corporation’s management and board of directors have periodically conducted strategic reviews as part of their ongoing efforts to improve the Corporation’s banking franchise and enhance shareholder value. In connection with these strategic reviews, the Corporation has considered potential acquisition targets, including banking institutions in Ohio. On March 26, 2013, the Corporation’s board of directors unanimously approved the merger transaction with FC Banc Corp. and authorized the Corporation’s management to execute and deliver the merger agreement.

As disclosed in the accompanying consolidated statements of income, the Corporation incurred merger costs of $2,396 during the year ended December 31, 2013. All merger costs have been expensed as incurred.

The following table summarizes the consideration paid for FC Banc Corp. and the amounts of the assets acquired and liabilities assumed that were recognized at the acquisition date:

Consideration paid:
Cash	$	8,013
Common stock		33,561
Fair value of total consideration transferred		41,574
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		54,995
Securities available for sale		34,214
Loans		247,737
FHLB and other equity interests		1,789
Premises and equipment		4,328
Bank owned life insurance		3,955
Mortgage servicing rights		83
Core deposit intangible		4,834
Accrued interest receivable and other assets		8,093
Total assets acquired		360,028
Demand deposits		248,812
Time deposits		83,214
Accrued interest payable and other liabilities		2,676
Total liabilities assumed		334,702
Total identifiable net assets		25,326
Goodwill	$	16,248

Included in accrued interest receivable and other assets is a deferred tax asset totaling $5,696 representing the tax effect of temporary differences between the tax basis and fair values assigned to the assets and liabilities, as well as the effect of FC Banc Corp.’s net operating loss carryfowards. See Note 13.

Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Determining the fair value of loans involved estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Loans acquired with evidence of credit quality deterioration totaled $2,225. The Corporation acquired $256,418 of gross loans, including purchased credit impaired loans, and recognized a net combined yield and credit mark of $8,681.

64

Goodwill of $16,248 arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the Corporation and FC Banc Corp. None of the goodwill is expected to be deductible for income tax purposes.

The following table presents pro forma information as if the acquisition had occurred at the beginning of 2012:

	2013		2012
Net interest income	$	68,723	$	65,786
Net income		17,589		20,125
Basic earnings per share		1.23		1.41
Diluted earnings per share		1.23		1.41

3.  Earnings Per Share

The computation of basic and diluted earnings per share is shown below (in thousands, except per share data). For the years ended December 31, 2012, and 2011, options to purchase 37,500 and 75,500 shares of common stock were not considered in computing diluted earnings per share because they were anti-dilutive. There were no anti-dilutive stock options for the year ended December 31, 2013.

	Years Ended December 31
	2013			2012			2011
Basic earnings per common share computation
Net income per consolidated statements of income	$	16,679		$	17,136		$	15,104
Net earnings allocated to participating securities		(73	)		(62	)		(42	)
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Distributed earnings allocated to common stock	$	8,532		$	8,182		$	8,101
Undistributed earnings allocated to common stock		8,074			8,892			6,961
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Weighted average common shares outstanding, including shares considered participating securities		12,929			12,441			12,306
Less: Average participating securities		(50	)		(41	)		(33	)
Weighted average shares		12,879			12,400			12,273
Basic earnings per common share	$	1.29		$	1.38		$	1.23
Diluted earnings per common share computation
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Weighted average common shares outstanding for basic earnings per common share		12,879			12,400			12,273
Add: Dilutive effects of assumed exercises of stock options		2			3			6
Weighted average shares and dilutive potential common shares		12,881			12,403			12,279
Diluted earnings per common share	$	1.29		$	1.38		$	1.23

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4.  Securities

Securities available-for-sale at December 31, 2013 and 2012 are as follows:

	December 31, 2013								December 31, 2012
	Amortized Cost		Unrealized				Fair Value		Amortized Cost		Unrealized					Fair Value
			Gains		Losses						Gains		Losses
U.S. Treasury		$          0		$       0		$        0		$        0		$    4,018		$      18	$	0			$4,036
U.S. Gov’t sponsored entities		185,205		2,894		(6,474)		181,625		157,965		5,977		(161	)		163,781
State & political subdivisions		176,490		3,770		(2,317)		177,943		170,223		11,113		(57	)		181,279
Residential & multi-family mortgage		248,017		2,410		(7,820)		242,607		308,800		8,724		(702	)		316,822
Commercial mortgage		385		0		(11)		374		1,275		29		0			1,304
Corporate notes & bonds		15,744		65		(1,734)		14,075		17,368		26		(2,370	)		15,024
Pooled trust preferred		800		0		(139)		661		800		0		(200	)		600
Pooled SBA		70,077		688		(3,044)		67,721		50,667		2,277		(17	)		52,927
Other securities		1,020		0		(35)		985		1,521		17		0			1,538
Total		$697,738		$9,827		$(21,574)		$685,991		$712,637		$28,181		$(3,507)			$737,311

At December 31, 2013 and 2012, there were no holdings of securities by any one issuer, other than U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity. The Corporation’s residential and multi-family mortgage securities are issued by government sponsored entities, and the Corporation holds one commercial mortgage security that is private label.

Trading securities at December 31, 2013 and 2012 are as follows:

	2013		2012
Corporate equity securities	$	2,705	$	3,117
Certificates of deposit		253		408
International mutual funds		259		287
Large cap growth mutual funds		197		157
Money market mutual funds		124		110
Large cap value mutual funds		129		104
Corporate notes and bonds		152		101
Real estate investment trust mutual funds		39		65
U.S. Government sponsored entities		52		58
Small cap mutual funds		83		26
Mid cap mutual funds		84		26
Commodities mutual funds		50		0
Total	$	4,127	$	4,459

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Securities with unrealized losses at December 31, 2013 and 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

December 31, 2013	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury	$	0	$	0		$	0	$	0		$	0	$	0
U.S. Gov’t sponsored entities		95,677		(5,394	)		17,964		(1,080	)		113,641		(6,474	)
State & political subdivisions		57,526		(2,192	)		5,324		(125	)		62,850		(2,317	)
Residential & multi-family mortgage		150,229		(6,806	)		16,608		(1,014	)		166,837		(7,820	)
Commercial mortgage		374		(11	)		0		0			374		(11	)
Corporate notes & bonds		0		0			9,662		(1,734	)		9,662		(1,734	)
Pooled trust preferred		0		0			661		(139	)		661		(139	)
Pooled SBA		36,842		(2,296	)		8,277		(748	)		45,119		(3,044	)
Other securities		985		(35	)		0		0			985		(35	)
	$	341,633	$	(16,734	)	$	58,496	$	(4,840	)	$	400,129	$	(21,574	)
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
December 31, 2012
U.S. Treasury	$	0	$	0		$	0	$	0		$	0	$	0
U.S. Gov’t sponsored entities		41,715		(161	)		0		0			41,715		(161	)
State & political subdivisions		7,857		(57	)		0		0			7,857		(57	)
Residential and multi-family mortgage		32,159		(688	)		4,254		(14	)		36,413		(702	)
Commercial mortgage		0		0			0		0			0		0
Corporate notes & bonds		0		0			13,002		(2,370	)		13,002		(2,370	)
Pooled trust preferred		0		0			600		(200	)		600		(200	)
Pooled SBA		3,521		(17	)		0		0			3,521		(17	)
Other securities		0		0			0		0			0		0
	$	85,252	$	(923	)	$	17,856	$	(2,584	)	$	103,108	$	(3,507	)

The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation.

The following table provides detailed information related to the Corporation’s structured pooled trust preferred securities as of December 31, 2013 and for the years ended December 31, 2013, 2012, and 2011:

	As of December 31, 2013							Credit Losses Realized in Earnings
	Adjusted Amortized		Unrealized			Fair		Year Ended December 31,
	Cost		Gain (Loss)			Value		2013		2012		2011
ALESCO Preferred Funding V, Ltd.	$	800	$	(139	)	$	661	$	0	$	0	$	0
ALESCO Preferred Funding XII, Ltd.		0		0			0		0		0		280
ALESCO Preferred Funding XVII, Ltd.		0		0			0		0		0		0
Preferred Term Securities XVI, Ltd.		0		0			0		0		0		118
US Capital Funding VI, Ltd.		0		0			0		0		0		0
Total	$	800	$	(139	)	$	661	$	0	$	0	$	398

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At December 31, 2013, the Corporation evaluated the ALESCO Preferred Funding V, Ltd. Security for other than-temporary impairment by estimating the cash flows expected to be received, taking into account future estimated levels of deferrals and defaults by the underlying issuers and discounting those cash flows at the appropriate accounting yield.

A roll-forward of the other-than-temporary impairment amount related to credit losses for the years ended December 31, 2013, 2012 and 2011 is as follows:

	2013		2012		2011
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, beginning of period	$	4,054	$	4,054	$	3,656
Additional credit loss for which other-than-temporary impairment was not previously recognized		0		0		0
Additional credit loss for which other-than-temporary impairment was previously recognized		0		0		398
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, end of period	$	4,054	$	4,054	$	4,054

Due to the insignificance of the adjusted amortized cost of structured pooled trust preferred securities as of December 31, 2013 and 2012, no further disclosures are required.

For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management monitors information from quarterly “call” report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed, as appropriate given the following considerations. When reviewing securities for other-than-temporary impairment, management considers the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred. Management also considers the length of time and extent to which fair value has been less than cost, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

As of December 31, 2013 and 2012, management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons:

— There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.

— All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.

The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis.

On December 31, 2013 and 2012, securities carried at $353,102 and $264,813, respectively, were pledged to secure public deposits and for other purposes as provided by law.

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The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at December 31, 2013:

	December 31, 2013
	Amortized Cost		Fair Value
1 year or less	$	31,192	$	30,902
1 year – 5 years		141,228		141,410
5 years – 10 years		165,713		163,735
After 10 years		40,106		38,257
		378,239		374,304
Residential and multi-family mortgage		248,017		242,607
Pooled SBA		70,077		67,721
Commercial mortgage		385		374
Total debt securities	$	696,718	$	685,006

Mortgage securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral.

Information pertaining to security sales is as follows:

Year ended December 31	Proceeds		Gross Gains		Gross Losses
2013	$	35,633	$	849	$	494
2012		125,579		1,809		430
2011		69,740		878		264

The tax provision related to these net realized gains was $124, $483, and $215, respectively.

During 2013, 2012 and 2011, the Corporation sold trading securities. Proceeds were $5,811 in 2013, $3,386 in 2012, and $343 in 2011, resulting in net gains of $579 in 2013, $298 in 2012, and $30 in 2011.

5.   Loans

Total net loans at December 31, 2013 and 2012 are summarized as follows:

	2013			2012
Commercial, industrial, and agricultural	$	291,704		$	257,091
Commercial mortgages		467,292			261,791
Residential real estate		471,298			347,904
Consumer		63,491			58,668
Credit cards		5,065			4,800
Overdrafts		409			971
Less: unearned discount		(3,896	)		(3,401	)
allowance for loan losses		(16,234	)		(14,060	)
Loans, net	$	1,279,129		$	913,764

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At December 31, 2013 and 2012 net unamortized loan costs of $911 and $232, respectively, have been included in the carrying value of loans.

The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within Central and Western Pennsylvania and Central Ohio. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers, and by entering into participation agreements with third parties. Collateral requirements are established based on management’s assessment of the customer. The Corporation maintains lending policies to control the quality of the loan portfolio. These policies delegate the authority to extend loans under specific guidelines and underwriting standards. These policies are prepared by the Corporation’s management and reviewed and ratified annually by the Corporation’s Board of Directors.

All relevant documentation, such as the loan application, financial statements and tax returns, required under the lending policies is summarized and provided to management and/or the Corporation’s Board of Directors in connection with the loan approval process. Such documentation is subsequently electronically archived in the Corporation’s document management system. Pursuant to the Corporation’s lending policies, management considers a variety of factors when determining whether to extend credit to a customer, including loan-to-value ratios, FICO scores, quality of the borrower’s financial statements, and the ability to obtain personal guarantees.

Commercial, industrial, and agricultural loans comprised 23% and 28% of the Corporation’s total loan portfolio at December 31, 2013 and 2012, respectively. Commercial mortgage loans comprised 37% and 29% of the Corporation’s total loan portfolio at December 31, 2013 and 2012, respectively. Management assigns a risk rating to all commercial loans in excess of $250,000. The loan-to-value policy guidelines for commercial, industrial, and agricultural loans are generally a maximum of 80% of the value of business equipment, a maximum of 75% of the value of accounts receivable, and a maximum of 60% of the value of business inventory. The loan-to-value policy guideline for commercial mortgage loans is generally a maximum of 85% of the appraised value of the real estate.

Residential real estate loans comprised 37% and 38% of the Corporation’s total loan portfolio at December 31, 2013 and 2012, respectively. The loan-to-value policy guidelines for residential real estate loans vary depending on the collateral position and the specific type of loan. Higher loan-to-value terms may be approved with the appropriate private mortgage insurance coverage. The Corporation also originates and prices loans for sale into the secondary market through Freddie Mac. Loans so originated are classified as loans held for sale and are excluded from residential real estate loans reported above. The rationale for these sales is to mitigate interest rate risk associated with holding lower rate, long-term residential mortgages in the loan portfolio and to generate fee revenue from sales and servicing the loan. The Corporation also offers a variety of unsecured and secured consumer loan and credit card products which represent less than 10% of the total loan portfolio at both December 31, 2013 and 2012. Terms and collateral requirements vary depending on the size and nature of the loan.

CNB has not underwritten any hybrid loans, payment option loans, or low documentation/no documentation loans. Variable rate loans are generally underwritten at the fully indexed rate. Loan underwriting policies and procedures have not changed materially between any periods presented.

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Transactions in the allowance for loan losses for the year ended December 31, 2013 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2013	$	4,940		$	4,697		$	2,466		$	1,699		$	83		$	175		$	14,060
Charge-offs		(958	)		(1,931	)		(467	)		(1,919	)		(97	)		(258	)		(5,630	)
Recoveries		7			1,430			5			114			16			94			1,666
Provision for loan losses		2,290			1,273			876			1,439			64			196			6,138
Allowance for loan losses, December 31, 2013	$	6,279		$	5,469		$	2,880		$	1,333		$	66		$	207		$	16,234

Transactions in the allowance for loan losses for the year ended December 31, 2012 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2012	$	4,511		$	4,470		$	1,991		$	1,404		$	71		$	168		$	12,615
Charge-offs		(2,871	)		(401	)		(304	)		(1,279	)		(78	)		(257	)		(5,190	)
Recoveries		45			0			1			91			18			99			254
Provision for loan losses		3,255			628			778			1,483			72			165			6,381
Allowance for loan losses, December 31, 2012	$	4,940		$	4,697		$	2,466		$	1,699		$	83		$	175		$	14,060

Transactions in the allowance for loan losses for the year ended December 31, 2011 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2011	$	3,517		$	3,511		$	1,916		$	1,561		$	96		$	219		$	10,820
Charge-offs		(1,796	)		(175	)		(217	)		(907	)		(39	)		(222	)		(3,356	)
Recoveries		9			0			13			88			10			94			214
Provision for loan losses		2,781			1,134			279			662			4			77			4,937
Allowance for loan losses, December 31, 2011	$	4,511		$	4,470		$	1,991		$	1,404		$	71		$	168		$	12,615

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The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and is based on the Corporation’s impairment method as of December 31, 2013 and 2012. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

December 31, 2013	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	372	$	55	$	0	$	0	$	0	$	0	$	427
Collectively evaluated for impairment		5,907		3,959		2,880		1,333		66		207		14,352
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		0		1,455		0		0		0		0		1,455
Total ending allowance balance	$	6,279	$	5,469	$	2,880	$	1,333	$	66	$	207	$	16,234
Loans:
Individually evaluated for impairment	$	4,923	$	1,249	$	0	$	0	$	0	$	0	$	6,172
Collectively evaluated for impairment		285,518		452,945		471,298		63,491		5,065		409		1,278,726
Acquired with deteriorated credit quality		0		2,225		0		0		0		0		2,225
Modified in a troubled debt restructuring		1,263		10,873		0		0		0		0		12,136
Total ending loans balance	$	291,704	$	467,292	$	471,298	$	63,491	$	5,065	$	409	$	1,299,259

December 31, 2012	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	541	$	131	$	81	$	0	$	0	$	0	$	753
Collectively evaluated for impairment		4,399		3,467		2,385		1,699		83		175		12,208
Modified in a troubled debt restructuring		0		1,099		0		0		0		0		1,099
Total ending allowance balance	$	4,940	$	4,697	$	2,466	$	1,699	$	83	$	175	$	14,060
Loans:
Individually evaluated for impairment	$	2,623	$	10,683	$	593	$	0	$	0	$	0	$	13,899
Collectively evaluated for impairment		253,048		240,907		347,311		58,668		4,800		971		905,705
Modified in a troubled debt restructuring		1,420		10,201		0		0		0		0		11,621
Total ending loans balance	$	257,091	$	261,791	$	347,904	$	58,668	$	4,800	$	971	$	931,225

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The following tables present information related to loans individually evaluated for impairment, including loans modified in troubled debt restructurings, by portfolio segment as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012, and 2011:

December 31, 2013	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	5,402	$	4,152	$	372
Commercial mortgage		6,173		5,970		1,510
Residential real estate		0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural		2,055		2,034		0
Commercial mortgage		6,178		6,152		0
Residential real estate		0		0		0
Total	$	19,808	$	18,308	$	1,882

December 31, 2012	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	2,542	$	1,792	$	541
Commercial mortgage		5,870		5,329		1,230
Residential real estate		416		381		81
With no related allowance recorded:
Commercial, industrial, and agricultural		2,804		2,251		0
Commercial mortgage		17,285		15,555		0
Residential real estate		308		212		0
Total	$	29,225	$	25,520	$	1,852

The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been charged off.

	Year Ended December 31, 2013
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,989	$	7	$	7
Commercial mortgage		6,572		3		3
Residential real estate		101		7		7
With no related allowance recorded:
Commercial, industrial, and agricultural		2,124		0		0
Commercial mortgage		11,885		0		0
Residential real estate		86		0		0
Total	$	22,757	$	17	$	17

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	Year Ended December 31, 2012
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,083	$	4	$	4
Commercial mortgage		5,504		3		3
Residential real estate		334		13		13
With no related allowance recorded:
Commercial, industrial, and agricultural		3,217		0		0
Commercial mortgage		12,723		0		0
Residential real estate		103		0		0
Total	$	24,964	$	20	$	20

	Year Ended December 31, 2011
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,711	$	3	$	3
Commercial mortgage		6,412		19		19
Residential real estate		179		4		4
With no related allowance recorded:
Commercial, industrial, and agricultural		2,050		0		0
Commercial mortgage		6,040		0		0
Residential real estate		0		0		0
Total	$	18,392	$	26	$	26

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of December 31, 2012 and 2011:

	December 31, 2013				December 31, 2012
	Nonaccrual		Past Due Over 90 Days Still on Accrual		Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	1,006	$	0	$	3,073	$	0
Commercial mortgages		7,236		0		8,570		109
Residential real estate		2,389		150		2,792		18
Consumer		942		170		10		217
Credit cards		0		24		0		13
Total	$	11,573	$	344	$	14,445	$	357

Nonaccrual loans and loans past due over 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

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The following table presents the aging of the recorded investment in past due loans as of December 31, 2013 and 2012 by class of loans.

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	211	$	542	$	855	$	1,608	$	290,096	$	291,704
Commercial mortgages		1,258		713		7,236		9,207		458,085		467,292
Residential real estate		4,216		114		2,539		6,869		464,429		471,298
Consumer		334		1,049		1,112		2,495		60,996		63,491
Credit cards		0		29		24		53		5,012		5,065
Overdrafts		0		0		0		0		409		409
Total	$	6,019	$	2,447	$	11,766	$	20,232	$	1,279,027	$	1,299,259

December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	724	$	157	$	2,968	$	3,849	$	253,242	$	257,091
Commercial mortgages		1,162		3,197		8,679		13,038		248,753		261,791
Residential real estate		1,390		641		2,700		4,731		343,173		347,904
Consumer		724		203		227		1,154		57,514		58,668
Credit cards		39		9		13		61		4,739		4,800
Overdrafts		0		0		0		0		971		971
Total	$	4,039	$	4,207	$	14,587	$	22,833	$	908,392	$	931,225

Troubled Debt Restructurings

During the years ended December 31, 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included either or both of the following: a reduction of the stated interest rate of the loan; or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk.

The following table presents the number of loans, loan balances, and specific reserves for loans that have been restructured in a troubled debt restructuring as of December 31, 2013 and December 31, 2012.

	December 31, 2013						December 31, 2012
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		2	$	1,263	$	0		2	$	1,420	$	0
Commercial mortgages		10		10,873		1,455		8		10,201		1,099
Residential real estate		0		0		0		0		0		0
Consumer		0		0		0		0		0		0
Credit cards		0		0		0		0		0		0
Total		12	$	12,136	$	1,455		10	$	11,621	$	1,099

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The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2013 and 2012:

	Year Ended December 31, 2013
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding  Recorded Investment
Commercial, industrial, and agricultural		0	$	0	$	0
Commercial mortgages		3		3,747		3,681
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0
Total		3	$	3,747	$	3,681

	Year Ended December 31, 2012
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding  Recorded Investment
Commercial, industrial, and agricultural		2	$	1,455	$	1,455
Commercial mortgages		5		2,717		2,717
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0
Total		7	$	4,172	$	4,172

The troubled debt restructurings described above increased the allowance for loan losses by $514 and $101 during the years ended December 31, 2013 and 2012, respectively.

Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from 4-15 years. Modifications involving an extension of the maturity date were for periods ranging from 4-18 years.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. Except as discussed below, all loans modified in troubled debt restructurings are performing in accordance with their modified terms as of December 31, 2013 and 2012 and no principal balances were forgiven in connection with the loan restructurings.

During the year ended December 31, 2013, the Corporation recorded a partial charge-off of $974 for a commercial mortgage loan with a balance of $1,660 that had defaulted under its restructured terms in 2012 and was placed on nonaccrual status. The Corporation recorded an additional provision for loan losses of $262 on this loan during the year ended December 31, 2013. A commercial mortgage loan with a balance of $1,086 defaulted under its restructured terms in 2013 and was placed on nonaccrual status. The Corporation recorded an additional provision for loan losses of $615 during the year ended December 31, 2013. In addition, an impaired commercial mortgage loan that was placed on non-accrual status in 2013 and having a balance of $3,269 was modified in a troubled debt restructuring. The Corporation recorded an additional provision for loan losses of $514 for this loan during the year ended December 31, 2013.

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During the year ended December 31, 2012, one commercial mortgage loan with a balance of $1,660 defaulted under its restructured terms and was placed on nonaccrual status, resulting in an increase in the allowance for loan losses of $503. No loans that were modified in a troubled debt restructuring were charged off during the year ended December 31, 2012.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without a loan modification. This evaluation is performed using the Corporation’s internal underwriting policies. The Corporation has no further loan commitments to customers whose loans are classified as a troubled debt restructuring.

Generally, non-performing troubled debt restructurings are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Credit Quality Indicators

The Corporation classifies commercial, industrial, and agricultural loans and commercial mortgage loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans with outstanding balances greater than $1 million are analyzed at least semiannually and loans with outstanding balances of less than $1 million are analyzed at least annually.

The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Corporation’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

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Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans. All loans included in the following tables have been assigned a risk rating within 12 months of the balance sheet date.

December 31, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	266,868	$	5,377	$	19,318	$	141	$	291,704
Commercial mortgages		404,876		16,755		44,936		725		467,292
Total	$	671,744	$	22,132	$	64,254	$	866	$	758,996

December 31, 2012	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	234,835	$	6,641	$	15,459	$	156	$	257,091
Commercial mortgages		225,294		12,294		23,501		702		261,791
Total	$	460,129	$	18,935	$	38,960	$	858	$	518,882

The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate, consumer, and credit card loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential, consumer, and credit card loans based on payment activity as of December 31, 2013 and December 31, 2012:

	December 31, 2013						December 31, 2012
	Residential Real Estate		Consumer		Credit Cards		Residential Real Estate		Consumer		Credit Cards
Performing	$	468,759	$	62,379	$	5,041	$	345,094	$	58,441	$	4,787
Non-performing		2,539		1,112		24		2,810		227		13
Total	$	471,298	$	63,491	$	5,065	$	347,904	$	58,668	$	4,800

The Corporation’s portfolio of residential real estate and consumer loans maintained within Holiday Financial Services Corporation (“Holiday”), a subsidiary that offers small balance unsecured and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics than are typical in the Bank’s consumer loan portfolio, are considered to be subprime loans.

Holiday’s loan portfolio, included in consumer and residential loans above, is summarized as follows at December 31, 2013 and 2012:

	2013			2012
Consumer	$	24,891		$	21,535
Residential real estate		1,552			954
Less: unearned discount		(3,896	)		(3,401	)
Total	$	22,547		$	19,088

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6.   Secondary Market Mortgage Activities

The following summarizes secondary market mortgage activities for the years ended December 31, 2013, 2012, and 2011:

	2013		2012		2011
Loans originated for resale, net of principal pay downs	$	19,883	$	32,626	$	19,927
Proceeds from sales of loans held for sale		22,252		32,512		23,324
Net gains on sales of loans held for sale		808		927		638
Loan servicing fees		375		340		349

Total loans serviced for others was $114,428, $104,017, and $109,006 at December 31, 2013, 2012, and 2011, respectively.

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Balance, beginning of year	$	714		$	906		$	909
Additions		350			85			249
Servicing rights acquired		83			0			0
Amortization		(242	)		(277	)		(252	)
Balance, end of year	$	905		$	714		$	906

The fair value of mortgage servicing rights is based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The fair value of mortgage servicing rights was $915, $718, and $959 at December 31, 2013, 2012, and 2011, respectively. No valuation allowance is deemed necessary at December 31, 2013, 2012, or 2011. The fair value of interest rate lock commitments was not material at December 31, 2013 or 2012.

7.   Premises and Equipment

The following summarizes premises and equipment at December 31, 2013 and 2012:

	2013		2012
Land	$	4,412	$	4,126
Premises and leasehold improvements		28,764		25,670
Furniture and equipment		20,248		17,522
Construction in process		3,924		408
		57,348		47,726
Less: accumulated depreciation		25,759		23,654
Premises and equipment, net	$	31,589	$	24,072

Depreciation on premises and equipment amounted to $2,147 in 2013, $1,948 in 2012, and $1,823 in 2011.

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In 2013, the Corporation entered into a contractual commitment to expand its main office facility in Clearfield, Pennsylvania at a cost of $4,128. Construction has commenced with $3,112 in construction-related expenditures incurred as of December 31, 2013. The project is expected to be completed early in the second quarter of 2014.

The Corporation is committed under twenty noncancelable operating leases for facilities and four noncancelable operating leases for vehicles with initial or remaining terms in excess of one year. The minimum annual rental commitments under these leases at December 31, 2013 are as follows:

2014	$	630
2015		617
2016		592
2017		426
2018		207
Thereafter		1,169
	$	3,641

Rental expense, net of rental income, charged to occupancy expense for 2013, 2012, and 2011 was $490, $351, and $349, respectively.

In December 2009, the Corporation entered into a sale-leaseback transaction for real estate used in the operations of one of its branch office locations. The lease term is seventeen years, with two automatic renewal terms of five years each. The Corporation sold the property for $1,200 but financed the entire sales amount. Because the buyer/lessor did not make an initial investment on the purchase of the real estate that is adequate to transfer the risks and rewards of ownership, the Corporation deferred the entire gain of $489 associated with this transaction, which is included in accrued interest payable and other liabilities in the accompanying consolidated balance sheet. The gain is being recognized over the term of the loan under the installment method, and the gain recognized was included in other income in the accompanying consolidated statements of income and comprehensive income and totaled $17, $19, and $16 in 2013, 2012, and 2011, respectively.

The minimum annual rental commitments under this lease at December 31, 2013 are as follows:

2014	$	112
2015		112
2016		112
2017		112
2018		112
Thereafter		893
	$	1,453

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8.  Foreclosed Assets

Foreclosed real estate is reported net of a valuation allowance and included in accrued interest receivable and other assets in the accompanying consolidated balance sheets. Activity for the years ended December 31, 2013, 2012, and 2011 is as follows:

	2013			2012			2011
Balance, beginning of year	$	325		$	505		$	396
Additions		1,151			750			249
Sales (at carrying value)		(490	)		(930	)		(140	)
Balance, end of year	$	986		$	325		$	505

Expenses related to foreclosed real estate include:

	2013			2012			2011
Net loss (gain) on sale	$	(252	)	$	(158	)	$	(101	)
Operating expenses, net of rental income		81			176			24
	$	(171	)	$	18		$	(77	)

9.  Goodwill and Intangible Assets

Goodwill

The change in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 is as follows:

	2013		2012
Balance, beginning of year	$	10,946	$	10,821
Acquired during the year		16,248		125
Balance, end of year	$	27,194	$	10,946

The goodwill acquired in 2013 is attributable to the business combination associated with the Corporation’s acquisition of FC Banc Corp. (Note 2).

In 2012, the Corporation purchased the loans and other assets of a consumer discount company in Ebensburg, Pennsylvania. The purchase price was $1,248 for the performing loans and customers of the business. The purchase price resulted in the Corporation recording goodwill of $125 in connection with the acquisition. Due to the insignificance of the assets acquired in relation to the consolidated financial statements as a whole, no further business combination or intangible asset disclosures are included in the notes to consolidated financial statements.

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 includes the determination of the carrying value of our single reporting unit, including the existing goodwill and intangible assets, and estimating the

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fair value of the reporting unit. We determined the fair value of our reporting unit exceeded its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, we are required to perform a second step to the impairment test. Our annual impairment analysis at December 31, 2013 and 2012 indicated that the Step 2 analysis was not necessary.

Intangible Assets

In connection with its acquisition of FC Banc Corp. in 2013, the Corporation recorded a core deposit intangible asset of $4,834 and amortization expense of $251, resulting in a net carrying value of $4,583 at December 31, 2013. No other intangible assets were required to be recorded in connection with the acquisition.

Estimated amortization expense for each of the next five years is as follows:

2014	$	1,180
2015		1,007
2016		835
2017		662
2018		489

10.  Deposits

The following table reflects time certificates of deposit accounts included in total deposits and their remaining maturities at December 31, 2013:

Time deposits maturing:
2014	$	122,126
2015		43,106
2016		40,874
2017		20,608
2018		27,043
Thereafter		12,005
	$	265,762

Certificates of deposit of $100 thousand or more totaled $126,924 and $87,018 at December 31, 2013 and 2012, respectively.

11.  Borrowings

At December 31, 2013, the Corporation had available one $10 million line of credit with an unaffiliated institution, at a variable interest rate with a floor as defined in the agreement. At December 31, 2012, the Corporation had available one $9 million line of credit with an unaffiliated institution, which was not renewed in 2013. There were no borrowings on either line of credit at December 31, 2013 and 2012.

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FHLB Borrowings

At December 31, 2013, the Bank had remaining borrowing capacity with the FHLB of $348,574. At December 31, 2013, borrowings with the FHLB are secured by a pledge of selected securities in the amount of $75,885 and certain loans with a balance of $469,822 at December 31, 2013. Borrowings from the FHLB at December 31, 2013 and 2012 are as follows:

Interest Rate	Maturity		2013		2012
(a)		09/17/15	$	20,000	$	20,000
(b)		06/01/17		10,000		10,000
(c)		08/07/17		5,000		5,000
(d)		08/07/17		5,000		5,000
(e)		08/07/17		10,000		10,000
(f)		10/10/17		10,000		10,000
(g)		07/07/23		700		700
(h)		09/05/23		2,280		2,388
(i)		06/11/24		535		557
(j)		05/24/26		302		321
(k)		10/14/26		311		330
(l)		02/11/33		872		0
			$	65,000	$	64,296

(a), (g) – Fixed rate borrowings at interest rates of 2.09% and 4.72%, respectively.

(b) – Interest rate was fixed at 4.60% until June 2009, since which time FHLB has had the option to convert to floating interest rate based on the 3 month LIBOR + 0.16%. The interest rate was 4.60% at December 31, 2013 and 2012.

(c) – Interest rate was fixed at 4.02% until February 2008, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.02% at December 31, 2013 and 2012.

(d) – Interest rate was fixed at 4.10% until August 2008, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.10% at December 31, 2013 and 2012.

(e) – Interest rate is fixed at 4.47% until August 2010, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.47% at December 31, 2013 and 2012.

(f) – Interest rate was fixed at 3.97% until October 2009, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.10%. The interest rate was 3.97% at December 31, 2013 and 2012.

(h) – Fixed rate borrowing at an interest rate of 4.31%, with monthly principal and interest payments and a balloon payment due at maturity.

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(i) – Fixed rate borrowing at an interest rate of 5.24%, with monthly principal and interest payments and a balloon payment due at maturity.

(j) – Fixed rate borrowing at an interest rate of 3.35%, with monthly principal and interest payments.

(k) – Fixed rate borrowing at an interest rate of 4.00%, with monthly principal and interest payments.

(l) – Fixed rate borrowing at an interest rate of 3.23%, with monthly principal and interest payments.

The terms of borrowings (a) through (g) are interest only payments with principal due at maturity.

Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances.

Other Borrowings

At December 31, 2013 and 2012, the Bank had outstanding borrowings of $12,950 and $23,510 from one unaffiliated institution under an overnight borrowing agreement. The interest rate on this borrowing was 0.35%.

The Bank entered into a borrowing transaction with an unaffiliated institution in March 2007. The proceeds of this borrowing were $10,000 and, as part of this transaction, the Bank pledged certain securities which had a carrying amount of $12,222 at December 31, 2013. The borrowing has a maturity date of March 20, 2017 and a variable interest rate of 3 month LIBOR minus 1.0% through March 20, 2008, at which time the interest rate became fixed as defined. The borrowing is callable by the issuer at the end of each quarter until maturity. The interest rate was 5.25% at December 31, 2013 and 2012.

Subordinated Debentures

In 2007, the Corporation issued two $10,000 floating rate trust preferred securities as part of a pooled offering of such securities. The interest rate on each offering is determined quarterly and floats based on the 3 month LIBOR plus 1.55% and was 1.79% and 1.86% at December 31, 2013 and 2012, respectively. The Corporation issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The subordinated debentures must be redeemed no later than 2037. The Corporation may redeem the debentures, in whole or in part, at face value at any time. The Corporation has the option to defer interest payments from time to time for a period not to exceed five consecutive years.

Although the trusts are variable interest entities, the Corporation is not the primary beneficiary. As a result, because the trusts are not consolidated with the Corporation, the Corporation does not report the securities issued by the trusts as liabilities. Instead, the Corporation reports as liabilities the subordinated debentures issued by the Corporation and held by the trusts, since the liabilities are not eliminated in consolidation.

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Maturity Schedule of All Borrowed Funds

The following is a schedule of maturities of all borrowed funds as of December 31, 2013:

2014	$	13,159
2015		20,218
2016		227
2017		50,237
2018		246
Thereafter		24,483
Total borrowed funds	$	108,570

12.  Interest Rate Swaps

On May 3, 2011, the Corporation executed an interest rate swap agreement with a 5 year term and an effective date of September 15, 2013 in order to hedge cash flows associated with $10 million of a subordinated note that was issued by the Corporation during 2007 and elected cash flow hedge accounting for the agreement. The Corporation’s objective in using this derivative is to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2013 to September 15, 2018 without exchange of the underlying notional amount. At December 31, 2013, the variable rate on the subordinated debt was 1.79% (LIBOR plus 155 basis points) and the Corporation was paying 5.57% (4.02% fixed rate plus 155 basis points).

On August 1, 2008, the Corporation executed an interest rate swap agreement with a 5 year term and an effective date of September 15, 2008 in order to hedge cash flows associated with $10 million of a subordinated note discussed above. The Corporation’s objective in using this derivative was to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involved the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2008 to the September 15, 2013 maturity date without exchange of the underlying notional amount.

As of December 31, 2013 and 2012, no derivatives were designated as fair value hedges or hedges of net investments in foreign operations. Additionally, the Corporation does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges.

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The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012, and 2011:

As of December 31	Liability Derivative
	Balance Sheet	Fair value
	Location	2013	2012
Interest rate contract	Accrued interest and other liabilities	($1,116)	($1,745)
For the Year Ended December 31, 2013	(a)	(b)		(c)	(d)	(e)
Interest rate contract	$409	Interest expense – subordinated debentures		($400)	Other income	$0
For the Year Ended December 31, 2012
Interest rate contract	($49)	Interest expense – subordinated debentures		($390)	Other income	$0
For the Year Ended December 31, 2011
Interest rate contract	($522)	Interest expense – subordinated debentures		($402)	Other income	$0

(a) Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax

(b) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(c) Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(d) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

(e) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

Amounts reported in accumulated other comprehensive loss related to the interest rate swap will be reclassified to interest expense as interest payments are made on the subordinated debentures. Such amounts reclassified from accumulated other comprehensive loss to interest expense in the next twelve months are expected to be $378.

As of December 31, 2013 and 2012, a cash collateral balance in the amount of $1,400 and $1,950, respectively, was maintained with the counterparty to the interest rate swaps. These balances are included in interest bearing deposits with other banks on the consolidated balance sheets.

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13.  Income Taxes

The following is a summary of income tax expense for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Current – federal	$	7,189		$	6,535		$	4,951
Current – state		128			116			137
Deferred - federal		(977	)		(240	)		441
Income tax expense	$	6,340		$	6,411		$	5,529

The components of the net deferred tax asset (liability) as of December 31, 2013 and 2012 are as follows:

	2013		2012
Deferred tax assets:
Allowance for loan losses	$	5,084	$	4,632
Unrealized loss on securities available for sale		4,085		0
Fair value adjustments – business combination		3,541		0
Deferred compensation		2,179		1,753
Impaired security valuation		590		670
Net operating loss carryover		2,155		0
Capital loss carryover		0		278
Post-retirement benefits		1,308		1,063
Unrealized loss on interest rate swap		391		616
Nonaccrual loan interest		516		305
Accrued expenses		817		297
Other		296		312
		20,962		9,926
Deferred tax liabilities:
Unrealized gain on securities available for sale		0		8,636
Premises and equipment		1,527		1,535
Intangibles – section 197		5,130		3,179
Mortgage servicing rights		317		250
Other		328		339
		7,302		13,939
Net deferred tax asset (liability)	$	13,660	($	4,013	)

The Corporation determined that it was not required to establish a valuation allowance for deferred tax assets since management believes that the deferred tax assets are likely to be realized through a carry back to taxable income in prior years, future reversals of existing temporary differences, and future taxable income.

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The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:

	2013			%			2012			%			2011			%
Tax at statutory rate	$	8,057			35.0		$	8,241			35.0		$	7,222			35.0
Tax exempt income, net		(1,664	)		(7.2	)		(1,553	)		(6.6	)		(1,353	)		(6.6	)
Bank owned life insurance		(543	)		(2.4	)		(341	)		(1.4	)		(325	)		(1.6	)
Merger costs		233			1.0			0			0.0			0			0.0
Other		257			1.1			64			0.2			(15	)		(0.0	)
Income tax expense	$	6,340			27.5		$	6,411			27.2		$	5,529			26.8

At December 31, 2013 and 2012, the Corporation has no unrecognized tax benefits. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

The Corporation recognizes interest and/or penalties related to income tax matters as part of income tax expense. At December 31, 2013 and 2012, there were no amounts accrued for interest and/or penalties.

The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the Commonwealth of Pennsylvania. The Corporation is no longer subject to examination by the taxing authorities for years prior to 2010. Tax years 2010 through 2012 remain open to federal and state examination.

In connection with its acquisition of FC Banc Corp., the Corporation assumed a federal net operating loss carryforward of $6,367, which expires in 2033. Under Section 382 of the Internal Revenue Code, the utilization of the loss carryforward in future years is limited based on the consideration paid and other factors. Management believes that the net operating loss carryforward will be used in full before its expiration.

14.  Employee Benefit Plans

The Corporation sponsors a contributory defined contribution Section 401(k) plan in which substantially all employees participate. The plan permits employees to make pre-tax contributions which are matched by the Corporation at 100% for every 1% contributed up to three percent then 50% for every 1% contributed up to the next four percent in total of the employee’s compensation. The Corporation’s contributions were $431, $397, and $385 in 2013, 2012, and 2011, respectively. Profit sharing contributions to this plan, based on current year compensation, are 6 percent of total compensation plus 5.7 percent of the compensation in excess of $114. The Corporation recognized profit sharing expense of $855, $783, and $667 in 2013, 2012, and 2011 respectively.

The Corporation has adopted a non-qualified supplemental executive retirement plan (“SERP”) for certain executives to compensate those executive participants in the Corporation’s retirement plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Corporation. At December 31, 2013 and 2012, obligations of $4,120 and $3,792, respectively, were included in other liabilities for this plan. Expenses related to this plan were $541 in 2013, $728 in 2012, and $647 in 2011.

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The Corporation has established a Survivor Benefit Plan for the benefit of outside directors. The purpose of the plan is to provide life insurance benefits to beneficiaries of the Corporation’s directors who at the time of their death are participants in the plan. The plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the plan are payable from the general assets of the Corporation. At December 31, 2013 and 2012, obligations of $932 and $813, respectively, were included in other liabilities for this plan. Expenses related to this plan were $119 in 2013, $127 in 2012, and $106 in 2011.

The Corporation has an unfunded post retirement benefits plan which provides certain health care benefits for retired employees who have reached the age of 60 and retired with 30 years of service. The plan was amended in 2013 to include only employees hired prior to January 1, 2000. Benefits are provided for these retired employees and their qualifying dependents from the age of 60 through the age of 65.

The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Benefit obligation at beginning of year	$	2,224		$	1,674		$	1,073
Interest cost		84			69			56
Service cost		125			88			49
Actual claims		(167	)		(184	)		(262	)
Plan amendment		(602	)		0			0
Actuarial loss		821			577			758
Benefit obligation at end of year	$	2,485		$	2,224		$	1,674

Amounts recognized in accumulated other comprehensive income at December 31, 2013 and 2012 consist of:

	2013			2012
Net actuarial loss	$	(1,667	)	$	(1,502	)
Transition obligation		0			(7	)
		(1,667	)		(1,509	)
Tax effect		583			528
	$	(1,084	)	$	(981	)

The accumulated benefit obligation was $2,485 and $2,224 at December 31, 2013 and 2012, respectively.

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The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:

	2013			2012			2011
Service cost	$	125		$	88		$	49
Interest cost		84			69			56
Net amortization of transition obligation and actuarial loss		61			41			11
Net periodic benefit cost		270			198			116
Net loss		821			578			758
Plan amendment		(602	)		0			0
Amortization of loss		(54	)		(34	)		(4	)
Amortization of transition obligation		(7	)		(7	)		(7	)
Total recognized in other comprehensive income		158			537			747
Total recognized in net periodic benefit cost and other comprehensive income	$	428		$	735		$	863

The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $149.

The weighted average discount rate used to calculate net periodic benefit cost was 3.88% in 2013, 4.29% in 2012, and 5.50% in 2011. The weighted average rate used to calculate accrued benefit obligations was 4.31% in 2013, 3.88% in 2012, and 4.29% in 2011. The health care cost trend rate used to measure the expected costs of benefits is 5.0% for 2014 and thereafter. A one percent increase in the health care trend rates would result in an increase of $241 in the benefit obligation as of December 31, 2013, and would increase the service and interest costs by $21 in future periods. A similar one percent decrease in health care trend rates would result in a decrease of $217 and $19 in the benefit obligation and services and interest costs, respectively, at December 31, 2013.

15.  Deferred Compensation Plans

Deferred compensation plans cover all directors and certain officers. Under the plans, the Corporation pays each participant, or their beneficiary, the value of the participant’s account over a maximum period of 10 years, beginning with the individual’s termination of service. A liability is accrued for the obligation under these plans.

A summary of changes in the deferred compensation plan liability follows:

	2013			2012			2011
Balance, beginning of year	$	990		$	987		$	1,038
Deferrals, dividends, and changes in fair value recorded as an expense		191			84			80
Deferred compensation payments		(81	)		(81	)		(131	)
Balance, end of year	$	1,100		$	990		$	987

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16.  Stock-Based Compensation

Stock Options

A summary of the status of the stock options is presented below:

	Stock Options			Weighted-average Exercise Price
Outstanding at January 1, 2013		75,500		$	16.79
Exercised		(40,000	)		17.45
Outstanding at December 31, 2013		35,500		$	16.04
Options vested and exercisable at December 31, 2013		35,500
Fair value of options granted during 2013		N/A
Number of authorized stock-based awards available for grant		393,441

Options outstanding and exercisable at December 31, 2013 are as follows:

Exercise Price	Number		Remaining Contractual Life
$16.04		35,500		1.0 years

The aggregate intrinsic value of all options outstanding and exercisable at December 31, 2013 and 2012 was $105 and $13, respectively.

Additional information related to the stock option plan follows:

	2013		2012	2011
Intrinsic value of options exercised	$	99	$114	$	151
Cash received from option exercises		698	424		259

As of December 31, 2013, there was no unrecognized compensation cost related to nonvested stock options granted under the stock option plan.

Restricted Stock Awards

A summary of changes in nonvested restricted stock awards follows:

	Shares			Weighted-average Grant Date Fair Value
Nonvested at January 1, 2013		49,574			$15.37
Granted		31,500			17.10
Forfeited		(525	)		16.44
Vested		(18,473	)		15.33
Nonvested at December 31, 2013		62,076			$16.25

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As of December 31, 2013 and 2012, there was $675 and $536, respectively, of total unrecognized compensation cost related to nonvested shares granted under the restricted stock award plan. The fair value of shares vesting during 2013, 2012, and 2011 was $323, $206 and $173, respectively. Compensation expense for restricted stock awards was $390 in 2013, $277 in 2012, and $213 in 201.

17.  Related Party Transactions

In the ordinary course of business, the Bank has transactions, including loans, with its officers, directors, and their affiliated companies. The aggregate of such loans totaled $2,238 on December 31, 2013 compared to $1,144 at December 31, 2012. During 2013, $1,432 new loans were made, $125 was added due to a change in the composition of related parties, and repayments totaled $463.

Deposits from principal officers, directors, and their affiliates were $48,249 and $25,293 at December 31, 2013 and 2012, respectively.

18.  Capital Requirements and Restrictions on Retained Earnings

Banks and financial holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, for the Bank, prompt corrective action (PCA) regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory enforcement actions. Management believes as of December 31, 2013 the Corporation and Bank meet all capital adequacy requirements to which they are subject.

The PCA regulations provide five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms alone do not represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion; brokered deposits may not be accepted, renewed or rolled over; and capital restoration plans are required. As of December 31, 2013 and 2012, the most recent regulatory notifications categorized the Bank as well capitalized under the PCA regulatory framework. There are no events or conditions since this notification that management believes have changed the Bank’s capital category.

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Actual and required capital amounts and ratios are presented below as of December 31, 2013 and 2012:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2013
Total Capital to Risk Weighted Assets
Consolidated		$183,984		13.72	%		$107,316		8.0	%		N/A
Bank		$166,440		12.57	%		$105,912		8.0	%		$132,390		10.0	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated		$167,773		12.51	%		$53,658		4.0	%		N/A
Bank		$151,585		11.45	%		$52,956		4.0	%		$79,434		6.0	%
Tier 1 (Core) Capital to Average Assets
Consolidated		$167,773		7.96	%		$84,332		4.0	%		N/A
Bank		$151,585		7.39	%		$82,078		4.0	%		$102,597		5.0	%
December 31, 2012
Total Capital to Risk Weighted Assets
Consolidated		$152,968		15.28	%		$80,073		8.0	%		N/A
Bank		$131,788		13.46	%		$78,324		8.0	%		$97,905		10.0	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated		$140,426		14.03	%		$40,036		4.0	%		N/A
Bank		$119,534		12.21	%		$39,162		4.0	%		$58,743		6.0	%
Tier 1 (Core) Capital to Average Assets
Consolidated		$140,426		8.06	%		$69,726		4.0	%		N/A
Bank		$119,534		6.99	%		$68,409		4.0	%		$85,512		5.0	%

Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans or advances. At December 31, 2013, $22,763 of accumulated net earnings of the Bank, included in the consolidated stockholders’ equity, was available for distribution to the Corporation as dividends without prior regulatory approval, subject to regulatory capital requirements described above.

19. Off Balance Sheet Activities

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off balance sheet risk was as follows at December 31, 2013 and 2012:

	2013				2012
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to make loans		$54,556		$155,391		$13,670		$171,862
Unused lines of credit		0		78,937		0		69,621
Standby letters of credit		0		13,520		0		22,598

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Commitments to make loans are generally made for periods of 60 days or less. The fixed rate loan commitments at December 31, 2013 have interest rates ranging from 2.15% to 18.00% and maturities ranging from 3 months to 20 years. The fixed rate loan commitments at December 31, 2012 have interest rates ranging from 2.15% to 16.00% and maturities ranging from 3 months to 20 years.

20.  Fair Value

Fair Value Measurement

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy has also been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following three levels of inputs are used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair values of most trading securities and securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value of one corporate bond held by the Corporation has been determined by using Level 3 inputs. The Corporation has engaged a valuation expert to price this security using a proprietary model which incorporates assumptions about certain factors that market participants would use in pricing the securities, including bid/ask spreads and liquidity and credit premiums.

The Corporation’s structured pooled trust preferred security is priced using Level 3 inputs. The decline in the level of observable inputs and market activity in this class of investments by the measurement date has been significant and resulted in unreliable external pricing. Broker pricing and bid/ask spreads, when available, vary widely, and the once-active market has become comparatively inactive. The Corporation engaged a third party consultant who has developed a model for pricing this security. Information such as historical and current performance of the underlying collateral, deferral and default rates, collateral coverage ratios, break in yield calculations, cash flow projections, liquidity and credit premiums required by a market participant, and financial trend analysis with respect to the individual issuing financial institutions and insurance companies are utilized in determining the security valuation. Due to the current market conditions as well as the limited trading activity of these types of securities, the market value of the Corporation’s structured pooled trust preferred security is highly sensitive to assumption changes and market volatility.

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The Corporation’s derivative instrument is an interest rate swap that is similar to those that trade in liquid markets. As such, significant fair value inputs can generally be verified and do not typically involve significant management judgments (Level 2 inputs).

The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals prepared by third-parties. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also adjusts appraised values based on the length of time that has passed since the appraisal date and other factors. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2013 and 2012:

				Fair Value Measurements at December 31, 2013 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Treasury	$	0		$	0	$	0		$	0
U.S. Government sponsored entities		181,625			0		181,625			0
States and political subdivisions		177,943			0		177,943			0
Residential and multi-family mortgage		242,607			0		242,607			0
Commercial mortgage		374			0		374			0
Corporate notes and bonds		14,075			0		14,075			0
Pooled trust preferred		661			0		0			661
Pooled SBA		67,721			0		67,721			0
Other securities		985			985		0			0
Total Securities Available For Sale	$	685,991		$	985	$	684,345		$	661
Trading Securities:
Corporate equity securities	$	2,705		$	2,705	$	0		$	0
Certificates of deposit		253			253		0			0
International mutual funds		259			259		0			0
Large cap growth mutual funds		197			197		0			0
Money market mutual funds		124			124		0			0
Large cap value mutual funds		129			129		0			0
Corporate notes and bonds		152			0		152			0
Real estate investment trust mutual funds		39			39		0			0
U.S. Government sponsored entities		52			0		52			0
Small cap mutual funds		83			83		0			0
Mid cap mutual funds		84			84		0			0
Commodities mutual funds		50			50		0			0
Total Trading Securities	$	4,127		$	3,923	$	204		$	0
Liabilities,
Interest rate swaps	$	(1,116	)	$	0	$	(1,116	)	$	0

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				Fair Value Measurements at December 31, 2012 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Treasury	$	4,036		$	0	$	4,036		$	0
U.S. Government sponsored entities		163,781			0		163,781			0
States and political subdivisions		181,279			0		181,279			0
Residential and multi-family mortgage		316,822			0		316,822			0
Commercial mortgage		1,304			0		1,304			0
Corporate notes and bonds		15,024			0		13,044			1,980
Pooled trust preferred		600			0		0			600
Pooled SBA		52,927			52,631		296			0
Other securities		1,538			1,538		0			0
Total Securities Available For Sale	$	737,311		$	54,169	$	680,562		$	2,580
Trading Securities:
Corporate equity securities	$	3,117		$	3,117	$	0		$	0
Certificates of deposit		408			408		0			0
International mutual funds		287			287		0			0
Large cap growth mutual funds		157			157		0			0
Money market mutual funds		110			110		0			0
Large cap value mutual funds		104			104		0			0
Corporate notes and bonds		101			0		101			0
Real estate investment trust mutual funds		65			65		0			0
U.S. Government sponsored entities		58			0		58			0
Small cap mutual funds		26			26		0			0
Mid cap mutual funds		26			26		0			0
Total Trading Securities	$	4,459		$	4,300	$	159		$	0
Liabilities,
Interest rate swaps	$	(1,745	)	$	0	$	(1,745	)	$	0

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2013:

	Corporate notes and bonds			Pooled trust preferred
Balance, January 1, 2013	$	1,980		$	600
Total gains or (losses):
Included in other comprehensive income (loss)		(29	)		61
Included in realized gains on available-for-sale securities		58			0
Sale of available-for-sale securities		(2,009	)		0
Balance, December 31, 2013	$	0		$	661

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The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2012:

	Corporate notes and bonds			Pooled trust preferred
Balance, January 1, 2012	$	2,060		$	340
Total gains or (losses):
Included in other comprehensive income (unrealized)		(80	)		260
Balance, December 31, 2012	$	1,980		$	600

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2013:

	Fair value		Valuation Technique	Unobservable Inputs	Input Utilized
Pooled trust preferred	$	661	Discounted cash flow	Collateral default rate Yield Prepayment speed	2% in 2014; 1.5% in 2015; 1.0% in 2016; 0.5% in 2017 and thereafter 15% 2.0% constant prepayment rate in 2014 and thereafter

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2012:

	Fair value	Valuation Technique	Unobservable Inputs	Input Utilized
Corporate notes and bonds	$1,980	Discounted cash flow	Constant prepayment rate Probability of default Discount rate	0% 0% 9.6%
Pooled trust preferred	$600	Discounted cash flow	Collateral default rate Discount rate Recovery probability	2% annually for 2 years; 0.36% thereafter 13% 10%, lagged 2 years

At December 31, 2013, the significant unobservable inputs used in the fair value measurement of the Corporation’s pooled trust preferred security are collateral default rate, yield, and prepayment speed. At December 31, 2012, the significant unobservable inputs used in the fair value measurement of the Corporation’s pooled trust preferred security are collateral default rate, yield, and recovery probability. Significant increases in specific-issuer default assumptions or decreases in specific-issuer recovery assumptions would result in a significantly lower fair value measurement. Conversely, decreases in specific-issuer default assumptions or increases in specific-issuer recovery assumptions would result in a higher fair value measurement.

During the year ended December 31, 2013, $52,631 of available for sale Pooled SBA securities reported as Level 1 securities as of the beginning of the year were transferred to the Level 2 category since the Corporation could not obtain quoted prices for identical assets in active markets.

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During the year ended December 31, 2012, the following available for sale securities reported as Level 1 securities as of the beginning of the year were transferred to the Level 2 category:

	2012
U.S. Government sponsored entities	$	2,000
States and political subdivisions		4,655
Residential and multi-family mortgage		8,577
Total	$	15,232

These securities were transferred from the Level 1 category to the Level 2 category since there were no longer quoted prices for identical assets in active markets that the Corporation had the ability to access. There were no transfers of securities from Level 2 to Level 1 during the years ended December 31, 2013 or 2012. The Corporation’s policy for determining when a transfer between the Level 1 and Level 2 categories has occurred is to monitor and report such transfers as of each quarterly reporting period.

Assets and liabilities measured at fair value on a non-recurring basis are as follows at December 31, 2013 and 2012:

			Fair Value Measurements at December 31, 2013 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	3,000		0		0	$	3,000
Commercial, industrial, and agricultural		3,706		0		0		3,706
			Fair Value Measurements at December 31, 2012 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	8,422	$	0	$	0	$	8,422
Commercial, industrial, and agricultural		1,973		0		0		1,973
Residential real estate		402		0		0		402

Impaired loans, which are measured for impairment using the fair value of collateral for collateral dependent loans, had a principal balance of $8,161, with a valuation allowance of $1,455 as of December 31, 2013, resulting in an additional provision for loan losses of $1,415 for the year then ended. Impaired loans had a principal balance of $12,535, with a valuation allowance of $1,738 as of December 31, 2012, resulting in an additional provision for loan losses of $2,558 for the year then ended.

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The estimated fair values of impaired collateral dependent loans such as commercial or residential mortgages are determined primarily through third-party appraisals. When a collateral dependent loan, such as a commercial or residential mortgage loan, becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal, and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral and a further reduction for estimated costs to sell the property is applied, which results in an amount that is considered to be the estimated fair value. If a loan becomes impaired and the appraisal of related loan collateral is outdated, management applies an appropriate adjustment factor based on its experience with current valuations of similar collateral in determining the loan’s estimated fair value and resulting allowance for loan losses. Third-party appraisals are not customarily obtained in respect of unimpaired loans, unless in management’s view changes in circumstances warrant obtaining an updated appraisal.

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 December 31, 2013:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	3,000	Sales comparison approach	Adjustment for differences between the comparable sales	17%—61% (22%)
Impaired loans – commercial, industrial, and agricultural	$	3,274	Sales comparison approach	Adjustment for differences between the comparable sales	9%
Impaired loans – commercial, industrial, and agricultural	$	432	Income approach	Adjustment for differences in net operating income	2%

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 December 31, 2012:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	8,422	Sales comparison approach	Adjustment for differences between the comparable sales	1%—39% (19%)
Impaired loans – commercial, industrial, and agricultural	$	1,973	Income approach	Adjusting for differences in net operating income	24%—38% (27%)
Impaired loans – residential real estate	$	402	Sales comparison approach	Adjustment for differences between the comparable sales	10%—15% (11%)

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Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at December 31, 2013:

	Carrying Amount			Fair Value Measurement Using:									Total Fair Value
				Level 1			Level 2			Level 3
ASSETS
Cash and cash equivalents	$	29,633		$	29,633		$	0		$	0		$	29,633
Interest bearing time deposits with other banks		275			0			274			0			274
Securities available for sale		685,991			985			684,345			661			685,991
Trading securities		4,127			3,923			204			0			4,127
Loans held for sale		487			0			507			0			507
Net loans		1,279,129			0			0			1,276,622			1,276,622
FHLB and other equity interests		7,533			n/a			n/a			n/a			n/a
Accrued interest receivable		8,032			368			3,302			4,362			8,032
LIABILITIES
Deposits	$	(1,835,314	)	$	(1,569,552	)	$	(265,237	)	$	0		$	(1,834,789	)
FHLB and other borrowings		(87,950	)		0			(87,833	)		0			(87,833	)
Subordinated debentures		(20,620	)		0			(11,178	)		0			(11,178	)
Interest rate swaps		(1,116	)		0			(1,116	)		0			(1,116	)
Accrued interest payable		(868	)		(200	)		(653	)		(15	)		(868	)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2012:

	Carrying Amount			Fair Value Measurement Using:									Total Fair Value
				Level 1			Level 2			Level 3
ASSETS
Cash and cash equivalents	$	31,881		$	31,881		$	0		$	0		$	31,881
Interest bearing time deposits with other banks		225			0			281			0			281
Securities available for sale		737,311			54,169			680,562			2,580			737,311
Trading securities		4,459			4,300			159			0			4,459
Loans held for sale		2,398			0			2,460			0			2,460
Net loans		913,764			0			0			946,238			946,238
FHLB and other equity interests		6,684			n/a			n/a			n/a			n/a
Accrued interest receivable		6,863			278			3,498			3,087			6,863
LIABILITIES
Deposits	$	(1,485,003	)	$	(1,272,060	)	$	(215,485	)	$	0		$	(1,487,545	)
FHLB and other borrowings		(97,806	)		0			(105,850	)		0			(105,850	)
Subordinated debentures		(20,620	)		0			(10,682	)		0			(10,682	)
Interest rate swaps		(1,745	)		0			(1,745	)		0			(1,745	)
Accrued interest payable		(1,022	)		(301	)		(707	)		(14	)		(1,022	)

The methods and assumptions, not otherwise presented, used to estimate fair values are described as follows:

Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate fair values and are classified as Level 1.

Interest bearing time deposits with other banks: The fair value of interest bearing time deposits with other banks is estimated using a discounted cash flow calculation that applies interest rates

100

currently being offered to a schedule of aggregated expected monthly maturities, resulting in a Level 2 classification.

Loans held for sale: The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification.

Loans: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values, resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

FHLB and other equity interests: It is not practical to determine the fair value of Federal Home Loan Bank stock and other equity interests due to restrictions placed on the transferability of these instruments.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value resulting in a classification that is consistent with the asset with which it is associated.

Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amount), resulting in a Level 1 classification. Fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits, resulting in a Level 2 classification.

FHLB and other borrowings: The fair values of the Corporation’s FHLB and other borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements, resulting in a Level 2 classification.

Subordinated debentures: The fair value of the Corporation’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of arrangements, resulting in a Level 3 classification.

Accrued interest payable: The carrying amount of accrued interest payable approximates fair value resulting in a classification that is consistent with the liability with which it is associated.

While estimates of fair value are based on management’s judgment of the most appropriate factors as of the balance sheet date, there is no assurance that the estimated fair values would have been realized if the assets had been disposed of or the liabilities settled at that date, since market values may differ depending on various circumstances. The estimated fair values would also not apply to subsequent dates.

In addition, other assets and liabilities that are not financial instruments, such as premises and equipment, are not included in the disclosures. Also, non-financial assets such as, among other things, the estimated earnings power of core deposits, the earnings potential of trust accounts, the trained workforce, and customer goodwill, which typically are not recognized on the balance sheet, may have value but are not included in the fair value disclosures.

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21.  Parent Company Only Financial Information (Dollars in thousands)

CONDENSED BALANCE SHEETS	December 31,
	2013		2012
Assets
Cash	$	1,778	$	2,029
Trading securities		276		229
Investment in bank subsidiary		161,983		138,195
Investment in non-bank subsidiaries		22,738		27,796
Deferred tax asset		636		883
Other assets		2,240		2,249
Total assets	$	189,651	$	171,381
Liabilities
Borrowings from subsidiary	$	1,350	$	1,950
Subordinated debentures		20,620		20,620
Other liabilities		2,770		3,447
Total liabilities		24,740		26,017
Total shareholders’ equity		164,911		145,364
Total liabilities and shareholders’ equity	$	189,651	$	171,381

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31,
Income:	2013			2012			2011
Dividends from:
Bank subsidiary	$	1,875		$	7,990		$	7,600
Non-bank subsidiaries		6,674			0			0
Other		208			208			146
Total income		8,757			8,198			7,746
Expenses		(1,461	)		(1,457	)		(1,410	)
Income before income taxes and equity in undistributed net income of subsidiaries:		7,296			6,741			6,336
Income tax benefit		438			438			443
Equity in undistributed net income of bank subsidiary		14,080			8,682			7,162
Equity in undistributed net income (loss) of non-bank subsidiaries		(5,135	)		1,275			1,163
Net income		16,679			17,136			15,104
Other Comprehensive Income (Loss):
Net change in unrealized gains/losses on available for sale securities, net of reclassification and tax		(23,675	)		3,561			14,441
Change in actuarial gain, net of amortization and tax, for post-employment health care plan, net of tax		(103	)		(349	)		(485	)
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of tax		409			(49	)		(522	)
Total other comprehensive income (loss)		(23,369	)		3,163			13,434
Comprehensive income (loss)	$	(6,690	)	$	20,299		$	28,538

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CONDENSED STATEMENTS OF CASH FLOWS	Year Ended December 31,
	2013			2012			2011
Net income
Adjustments to reconcile net income to net cash provided by	$	16,679		$	17,136		$	15,104
operating activities:
Equity in undistributed net income of bank subsidiary		(14,080	)		(8,682	)		(7,162	)
Equity in undistributed (net income) loss of non-bank subsidiaries		5,135			(1,275	)		(1,163	)
Net unrealized (gains) losses on trading securities		(47	)		(54	)		2
Decrease in other assets		112			47			39
Increase in other liabilities		384			384			334
Net cash provided by operating activities		8,183			7,556			7,154
Cash flows from investing activities:
Purchase of securities		0			0			(100	)
Net cash used in investing activities		0			0			(100	)
Cash flows from financing activities:
Dividends paid		(8,573	)		(8,214	)		(8,125	)
Proceeds from sale of treasury stock and option exercises		739			951			1,447
Net advance to (repayment from) subsidiary		(600	)		(200	)		400
Net cash used in financing activities		(8,434	)		(7,463	)		(6,278	)
Net increase (decrease) in cash		(251	)		93			776
Cash beginning of year		2,029			1,936			1,160
Cash end of year	$	1,778		$	2,029		$	1,936

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22.  Other Comprehensive Income

Other comprehensive income components and related tax effects were as follows for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Unrealized holding gains (losses) on available for sale securities	$	(36,130	)	$	6,597		$	22,457
Less reclassification adjustment for gains recognized in earnings		(355	)		(1,379	)		(614	)
Net unrealized gains		(36,485	)		5,218			21,843
Tax effect		12,770			(1,826	)		(7,642	)
Net-of-tax amount		(23,715	)		3,392			14,201
Unrealized holding gains (losses) on available for sale securities for which a portion of an other-than-temporary impairment has been recognized in earnings		61			260			(28	)
Less reclassification adjustment for impairment loss recognized in earnings		0			0			398
Net unrealized gains		61			260			370
Tax effect		(21	)		(91	)		(130	)
Net-of-tax amount		40			169			240
Actuarial loss on postemployment health care plan		(219	)		(578	)		(757	)
Net amortization of transition obligation and actuarial gain		61			41			11
Net unrealized loss on postemployment health care plan		(158	)		(537	)		(746	)
Tax effect		55			188			261
Net-of-tax amount		(103	)		(349	)		(485	)
Unrealized loss on interest rate swap		229			(465	)		(1,205	)
Less reclassification adjustment for losses recognized in earnings		400			390			402
Net unrealized gain (loss)		629			(75	)		(803	)
Tax effect		(220	)		26			281
Net-of-tax amount		409			(49	)		(522	)
Other comprehensive income	$	(23,369	)	$	3,163		$	13,434

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The following is a summary of the change in the accumulated other comprehensive income (loss) balance, net of tax, for the years ended December 31, 2013, 2012, and 2011:

	Balance 1/1/11			Increase (Decrease)			Balance 12/31/11			Increase (Decrease)			Balance 12/31/12			Increase (Decrease)			Balance 12/31/13
Unrealized gains (losses) on securities available for sale	$	(1,963	)	$	14,441		$	12,478		$	3,561		$	16,039		$	(23,675	)	$	(7,636	)
Unrealized gain (loss) on postretirement benefits plan		(147	)		(485	)		(632	)		(349	)		(981	)		(103	)		(1,084	)
Unrealized loss on interest rate swap		(563	)		(522	)		(1,085	)		(49	)		(1,134	)		409			(725	)
Total	$	(2,673	)	$	13,434		$	10,761		$	3,163		$	13,924		$	(23,369	)	$	(9,445	)

23.    Quarterly Financial Data (Unaudited)

The unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 are as follows (in thousands, except per share data):

	Quarters Ended in 2013								Quarters Ended in 2012
	Mar. 31		June 30		Sept. 30		Dec. 31		Mar. 31		June 30		Sept. 30		Dec. 31
Total interest and dividend income	$	16,704	$	16,758	$	17,465	$	20,489	$	16,824	$	17,207	$	17,133	$	16,965
Net interest income		13,451		13,826		14,648		17,279		12,677		13,274		13,670		13,588
Provision for loan losses		930		3,115		846		1,247		1,104		1,746		1,188		2,343
Non-interest income		3,071		3,771		3,248		3,676		3,518		3,264		3,079		2,803
Non-interest expense		9,682		10,793		10,343		12,995		9,014		8,833		9,208		8,890
Net income		4,297		2,951		4,703		4,728		4,347		4,336		4,563		3,890
Net income per share, basic		0.34		0.24		0.38		0.33		0.35		0.35		0.37		0.31
Net income per share, diluted		0.34		0.24		0.38		0.33		0.35		0.35		0.37		0.31

During the quarter ended December 31, 2013, the Corporation completed its acquisition of FC Banc Corp. FC Banc Corp. results of operations were included in the Corporation’s results beginning October 12, 2013. A provision for loan losses in the amount of $2,343 was recorded during the quarter ended December 31, 2012 as a result of specific reserves required for impaired loans in the commercial, industrial, and agricultural loan portfolio in the fourth quarter of 2012.

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Report of Independent Registered Public Accounting Firm

	Crowe Horwath LLP Independent Member Crowe Horwath International

Board of Directors and Shareholders

CNB Financial Corporation

Clearfield, Pennsylvania

We have audited the accompanying consolidated balance sheets of CNB Financial Corporation as of December 31, 2013 and 2012, and the related consolidated statements of income and comprehensive income, cash flows, and changes in shareholders’ equity for each of the years in the three-year period ended December 31, 2013. We also have audited CNB Financial Corporation’s internal control over financial reporting as of December 31, 2013 based on criteria established in the 1992 Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). CNB Financial Corporation’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting located in Item 9A of Form 10-K. Our responsibility is to express an opinion on these financial statements and an opinion on the company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

106

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As permitted, the Corporation excluded the operations of the financial institution acquired during 2013, which is described in Note 2 of the consolidated financial statements, from the scope of management’s report on internal control over financial reporting. As such, it has also been excluded from the scope of our audit of internal control over financial reporting.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of CNB Financial Corporation as of December 31, 2013 and 2012, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2013 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, CNB Financial Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on criteria established in the 1992 Internal Control – Integrated Framework issued by the COSO.

/s/ Crowe Horwath LLP

Crowe Horwath LLP

Cleveland, Ohio

March 7, 2014

107

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None

ITEM 9A. CONTROLS AND PROCEDURES

The Corporation’s management, under the supervision of and with the participation of the Corporation’s Principal Executive Officer and Principal Financial Officer, has carried out an evaluation of the design and effectiveness of the Corporation’s disclosure controls and procedures as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Securities Exchange Act of 1934 as of the end of the period covered by this report. Based upon that evaluation, management, including the Principal Executive Officer and Principal Financial Officer, have concluded that, as of the end of such period, the Corporation’s disclosure controls and procedures are effective to provide reasonable assurance that all material information required to be disclosed in reports the Corporation files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.

There was no significant change in the Corporation’s internal control over financial reporting that occurred during the quarter ended December 31, 2013 that has materially affected, or that is reasonably likely to materially affect, our internal control over financial reporting.

Management’s Report on Internal Control Over Financial Reporting

The management of the Corporation is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. The Corporation’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the U.S.

The Corporation’s internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Corporation are being made only in accordance with authorizations of management and directors of the Corporation; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Corporation’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

108

Management assessed the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2013. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in the 1992 Internal Control-Integrated Framework. Based on our assessment and those criteria, management concluded that the Corporation maintained effective internal control over financial reporting as of December 31, 2013. The effectiveness of our internal control over financial reporting as of December 31, 2013 has been audited by Crowe Horwath LLP, an independent registered public accounting firm that audited the Corporation’s financial statements, as stated in their report which is located in Item 8 of this Form 10-K.

Management’s assessment of the effectiveness of the Corporation’s internal control over financial reporting excluded FC Banc Corp., of which the Corporation had the right to control 100% of FC Banc Corp. shares during year-end 2013. This entity represented, in the aggregate, 17% and 5% of consolidated total assets and consolidated net interest income, respectively, of the Corporation as of and for the year ended December 31, 2013. This acquisition is more fully discussed in Note 2 to our consolidated financial statements for year-end 2013. Under guidelines established by the SEC, companies are allowed to exclude acquisitions from their first assessment of internal control over financial reporting following the date of the acquisition.

Joseph B. Bower, Jr.	Brian W. Wingard
President and Chief Executive Officer	Treasurer and Principal Financial Officer
Date: March 7, 2014	Date: March 7, 2014

109

ITEM 9B.  OTHER INFORMATION

None

PART III.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

See “Part I — Item 1 — Executive Officers” for information about our executive officers, which is incorporated by reference in this Item 10. Other information required by this Item 10 is incorporated herein by reference to our definitive proxy statement for our 2014 annual meeting of stockholders (the “2014 proxy statement”), which we will file with the SEC on or before 120 days after our 2013 fiscal year-end, and which will appear in the 2014 proxy statement under the captions “Proposal 1. Election of Class 1 Directors,” “Corporate Governance—Meetings and Committees of the Board of Directors—Audit Committee” and “Section 16(a) Beneficial Ownership Reporting Compliance.”

The Corporation’s board of directors has approved a Code of Ethics for Officers and Directors. The Code of Ethics can be found at the Bank’s website, www.bankcnb.com.

ITEM 11. EXECUTIVE COMPENSATION

Information required by this Item 11 is incorporated herein by reference to the 2014 proxy statement, including the information in the 2014 proxy statement appearing under the captions “Executive Compensation” and “Compensation of Directors.”

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Information required by this Item 12 is incorporated herein by reference to the 2014 proxy statement, including the information in the 2014 proxy statement appearing under the captions “Stock Ownership” and “Equity Compensation Plan Information.”

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Information required by this Item 13 is incorporated herein by reference to the 2014 proxy statement, including the information in the 2014 proxy statement appearing under the captions “Corporate Governance” and “Certain Transactions.”

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information required by this Item 14 is incorporated herein by reference to the 2014 proxy statement, including the information in the 2014 proxy statement appearing under the captions “Corporate Governance—Meetings and Committees of the Board of Directors—Audit Committee” and “Concerning the Independent Registered Public Accountants.”

110

PART IV.

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)(1) The following consolidated financial statements are set forth in Part II, Item 8:

Consolidated Balance Sheets as of December 31, 2013 and 2012

Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2013, 2012, and 2011

Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011

Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2013, 2012, and 2011

Notes to Consolidated Financial Statements

(a)(2)Financial statement schedules are not applicable or are included in the consolidated financial statements or related notes.

(a)(3)The following exhibits (asterisk denotes management contract or compensatory plan) are filed as a part of this report:

Exhibit No.	Description
2.1	Agreement and Plan of Merger, dated as of March 26, 2013, by and between the Corporation and FC Banc Corp., filed with the SEC as Exhibit 2.1 to the Corporation’s Current Report on Form 8-K filed on March 26, 2013, and incorporated herein by reference.
3.1	Amended and Restated Articles of Incorporation of the Corporation, filed as Appendix B to the 2006 Proxy Statement, filed with the SEC on March 24, 2006, and incorporated herein by reference.
3.2	By-Laws of the Corporation, as amended and restated, filed as Appendix C to the 2006 Proxy Statement, filed with the SEC on March 24, 2006, and incorporated herein by reference.
10.1	Employment contract with Joseph B. Bower, Jr., President and Chief Executive Officer, filed as Exhibit 10.1 to Form 8-K, filed with the SEC on March 9, 2012, and incorporated herein by reference.*
10.2	1999 Stock Incentive Plan, filed as Exhibit A to the 1999 Proxy Statement, filed with the SEC on March 29, 1999, and incorporated herein by reference.*
10.3	Employment contract with Richard L. Sloppy, Executive Vice President/Chief Lending Officer, filed as Exhibit 10.3 to Form 8-K, filed with the SEC on March 9, 2012, and incorporated herein by reference.*
10.4	2009 Stock Incentive Plan, filed as Exhibit 10(iii)-4 to Registration Statement No. 333-159941, filed with the SEC on November 12, 2009, and incorporated herein by reference.*

111

Exhibit No.	Description
10.5	Employment contract with Mark D. Breakey, Executive Vice President/Chief Credit Officer, filed as Exhibit 10.4 to Form 8-K, filed with the SEC on March 9, 2012, and incorporated herein by reference.*
10.6	Employment contract with Richard L. Greslick, Jr., Executive Vice President/Chief Operating Officer, filed as Exhibit 10.2 to Form 8-K, filed with the SEC on March 9, 2012, and incorporated herein by reference.*
10.7	Executive employment contract with Joseph E. Dell, Jr., dated September 23, 2013, filed herewith.*
21	Subsidiaries of the Registrant, filed as Exhibit 21 herewith.
23.1	Consent of Independent Registered Public Accounting Firm
31.1	Rule 13a – 14(a)/15d – 14(a) Certification of the Principal Executive Officer
31.2	Rule 13a – 14(a)/15d – 14(a) Certification of the Principal Financial Officer
32.1	Section 1350 Certification
32.2	Section 1350 Certification
99.1	Additional information mailed to shareholders with proxy statement and Form 10-K
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

112

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

			CNB FINANCIAL CORPORATION
			(Registrant)
Date:	March 7, 2014	By:	/s/ Joseph B. Bower, Jr.
			JOSEPH B. BOWER, JR.
			President & Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on March 7, 2014.

/s/ Joseph B. Bower, Jr.	/s/ Dennis L. Merrey
JOSEPH B. BOWER, JR.	DENNIS L. MERREY, Chairman
President and Director
(Principal Executive Officer)
/s/ Richard L. Greslick, Jr.	/s/Jeffrey S. Powell
RICHARD L. GRESLICK, JR.	JEFFREY S. POWELL, Director
Secretary and Director
/s/ Brian W. Wingard	/s/ James B. Ryan
BRIAN W. WINGARD	JAMES B. RYAN, Director
Treasurer
(Principal Financial and Accounting Officer)
/s/ William F. Falger	/s/ Nicholas C. Scott, Jr.
WILLIAM F. FALGER, Director	RICHARD B. SEAGER, Director
/s/ R. Duane Hord	/s/ Richard B. Seager
R. DUANE HORD, Director	RICHARD B. SEAGER, Director
/s/ Robert W. Montler	/s/ Peter F. Smith
ROBERT W. MONTLER, Director	PETER F. SMITH, Director
/s/ Deborah Dick Pontzer
DEBORAH DICK PONTZER, Director
/s/ Joel E. Peterson
JOEL E. PETERSON, Director

113

EXHIBIT INDEX

Exhibit No.	Description
2.1	Agreement and Plan of Merger, dated as of March 26, 2013, by and between the Corporation and FC Banc Corp., filed with the SEC as Exhibit 2.1 to the Corporation’s Current Report on Form 8-K filed on March 26, 2013, and incorporated herein by reference.
3.1	Amended and Restated Articles of Incorporation of the Corporation, filed as Appendix B to the 2006 Proxy Statement, filed with the SEC on March 24, 2006, and incorporated herein by reference.
3.2	By-Laws of the Corporation, as amended and restated, filed as Appendix C to the 2006 Proxy Statement, filed with the SEC on March 24, 2006, and incorporated herein by reference.
10.1	Employment contract with Joseph B. Bower, Jr., President and Chief Executive Officer, filed as Exhibit 10.1 to Form 8-K, filed with the SEC on March 9, 2012, and incorporated herein by reference.*
10.2	1999 Stock Incentive Plan, filed as Exhibit A to the 1999 Proxy Statement, filed with the SEC on March 29, 1999, and incorporated herein by reference.*
10.3	Employment contract with Richard L. Sloppy, Executive Vice President/Chief Lending Officer, filed as Exhibit 10.3 to Form 8-K, filed with the SEC on March 9, 2012, and incorporated herein by reference.*
10.4	2009 Stock Incentive Plan, filed as Exhibit 10(iii)-4 to Registration Statement No. 333-159941, filed with the SEC on November 12, 2009, and incorporated herein by reference.*
10.5	Employment contract with Mark D. Breakey, Executive Vice President/Chief Credit Officer, filed as Exhibit 10.4 to Form 8-K, filed with the SEC on March 9, 2012, and incorporated herein by reference.*
10.6	Employment contract with Richard L. Greslick, Jr., Executive Vice President/Chief Operating Officer, filed as Exhibit 10.2 to Form 8-K, filed with the SEC on March 9, 2012, and incorporated herein by reference.*
10.7	Executive employment contract with Joseph E. Dell, Jr., dated September 23, 2013, filed herewith.
21	Subsidiaries of the Registrant, filed as Exhibit 21 herewith.
23.1	Consent of Independent Registered Public Accounting Firm
31.1	Rule 13a – 14(a)/15d – 14(a) Certification of the Principal Executive Officer
31.2	Rule 13a – 14(a)/15d – 14(a) Certification of the Principal Financial Officer
32.1	Section 1350 Certification
32.2	Section 1350 Certification
99.1	Additional information mailed to shareholders with proxy statement and Form 10-K
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Denotes management contract or compensatory plan.

114

EX-10.7

Exhibit 10.7

EXECUTIVE EMPLOYMENT CONTRACT

MADE this 23^rd day of September, 2013, by and between CNB BANK, a state banking institution organized under the laws of the Commonwealth of Pennsylvania, with principal office at One South Second Street, P.O. Box 42, Clearfield, Pennsylvania, 16830, (hereinafter collectively referred to as “CNB”):

AND

JOSEPH E. DELL, JR., an adult individual, residing at 680D Oak Wood Avenue, State College, Pennsylvania, 16803, (hereinafter “MR. DELL”).

WHEREAS, MR. DELL has been hired by CNB as a Senior Executive; and,

WHEREAS, the Parties wish to memorialize their contractual relationship.

NOW WITNESSETH:

The Parties for themselves, their heirs, successors and assigns, in consideration of their mutual promises contained herein, intending to be legally bound, hereby agree to the following terms and conditions.

1. EMPLOYMENT: CNB will employ MR. DELL as a Senior Vice President, MR. DELL agrees to serve in that capacity. MR. DELL promises that during the term of this Agreement he shall dedicate his full time, attention and energies to his employment with CNB. MR. DELL further promises that he will report to CNB’s President and CEO, carry out decisions and otherwise abide by and enforce the policies of CNB.

MR. DELL shall also perform such other reasonable duties as may hereafter be assigned to him by CNB consistent with his abilities and position, including but not limited to services to CNB’s parent CNB Financial Corporation and its other subsidiaries.

MR. DELL will not engage in any other employment during the term of this Agreement, nor shall he engage in self-employed activities.

MR. DELL also recognizes that CNB’s success and recognition depend on his involvement with charitable and social organizations. In this regard, MR. DELL agrees to engage in such social and charitable activities or organizations as are consistent with his personal responsibilities and with his position with CNB.

MR. DELL shall also comply with all other CNB procedures and polices now or hereafter in effect.

MR. DELL further agrees that he and the members of his family shall comport themselves at all times in a manner that reflects upon CNB in a positive fashion.

2. TERM: The term of this Agreement shall be for three (3) years commencing on January 1, 2014, and ending on December 31, 2017, unless terminated sooner pursuant to the other provisions of this Agreement.

The Parties agree that this contract shall automatically renew itself for successive terms of one (1) year unless either party gives the other ninety (90) days written notice of his or its intent not to renew the contract prior to the end of the then current term.

However, the provisions of paragraphs 5 and 6 shall continue in Force and in accordance with the provisions therein and shall survive the expiration or termination of the term of employment.

3. COMPENSATION: MR. DELL shall be paid a base salary to be established annually by the Board of Directors. MR. DELL may also receive such annual increases, stock, stock rights and bonuses as may from time to time be awarded by the Board of Directors.

CNB will also provide MR. DELL with a family membership at the                      Country Club.

4. OTHER BENEFITS: MR. DELL shall participate in CNB’s retirement plan, health insurance plan, life insurance plan and receive such other benefits as CNB from time to time may provide to its employees.

MR. DELL shall also be entitled to 24 days paid vacation plus such sick leave as he may reasonable and actually require, both of which are upon condition that, consistent with the past practice of senior executives at CNB and upon condition that, in the opinion of the Board of Directors the amount and timing of his vacation does not unreasonably interfere with or detract from the fulfillment of his duties under this agreement.

MR. DELL shall be entitled to breavement and such other employee benefits as now or hereafter granted by CNB’s personnel policies.

5. CONFIDENTIAL INFORMATION: MR. DELL acknowledges and agrees that as an inducement to CNB to employ him and enter this written contract with him, that he shall not disclose, directly or indirectly, intentionally or unintentionally, during the term of this contract or at any time after its termination, any of CNB’s proprietary information, account information, customer lists, customer information, policies, pricing, strategy, codes, strategic plan, plans for expansion or business development or other information of a confidential nature (hereinafter referred to as “Confidential Information”), whatsoever regarding CNB without first obtaining the prior, written consent from CNB’s Chairperson of the Board that such disclosure is authorized. Communications with CNB’s employees, customers and business relations are excepted from the foregoing prohibition during the term of this Agreement to the extent that such communications are consistent with MR. DELL’s duties.

Confidential Information shall include all information recorded, memorialized or communicated in any form whether written, printed, verbal, video, photographic, electronic, magnetic, digital or otherwise. This shall also include such confidential information as MR. DELL may have memorized or remembered notwithstanding Pennsylvania or other law to the contrary.

Upon termination of this contract for any reason, MR. DELL promises that he shall promptly return to CNB or its designated representative any Confidential Information, automobile, insurance cards, owner’s cards, keys, credit cards, or other CNB property, in his possession.

MR. DELL further promises that he will not take, keep, or record copies, duplications or reproductions of the Confidential Information or other property subject to this Agreement after termination of this Agreement.

6. COVENANT NOT TO COMPETE: As additional consideration to CNB for entering this Agreement, and for granting the severance benefits described in paragraph 7 below which are a new benefit, MR. DELL covenants that he shall not compete against CNB, its parent, affiliates or subsidiaries, either directly or indirectly, by taking employment, gratuitously assisting or serving as an independent contractor, consultant, partner, director or officer with a competitor of CNB, or starting his own business which would compete directly or indirectly with CNB, or have a material interest in any business, corporation, partnership, LLC, savings and loan, bank, financial institution, brokerage, or other venture which competes directly or indirectly with CNB while he is employed by CNB and until the earlier of the following: (i) the expiration of a period of three (3) years following the date on which MR. DELL is last employed by CNB or (ii) the date of a change in control of CNB, as defined in Section 7. For the purpose of defining and enforcing this covenant, CNB’s competitors will be identified at the time it seeks enforcement of this covenant.

This determination shall be based on CNB’s market area and CNB’s plans for expansion or acquisition into other market areas at the time enforcement of this covenant is sought.

The Parties also agree that indirect competition shall include the instances stated above but involving MR. DELL’s spouse or children.

The Parties further agree that MR. DELL’s covenant not to compete shall apply in the event of his regular retirement or voluntary termination of his employment hereunder. MR. DELL agrees in this regard that the security provided by this Agreement is adequate consideration for his covenant not to compete.

MR. DELL agrees that the relevant public policy and legal aspects of covenants not to compete have been discussed with him and that every effort has been made to limit the restrictions placed upon MR. DELL to those that are reasonable and necessary to protect CNB’s legitimate interests. MR. DELL acknowledges that, based upon his education, experience, and training, the non-compete and non-solicitation provisions of this Section 6 will not prevent MR. DELL from earning a livelihood and supporting MR. DELL and his family during the relevant time period.

The existence of a claim, charge, or cause of action by MR. DELL against CNB or any of its affiliates shall not constitute a defense to the enforcement by CNB of the foregoing restrictive covenants, but such claim, charge, or cause of action shall be litigated separately.

If any restriction set forth in this Section 6 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of actitives or in too broad a geographic area, the court is hereby expressly authorized to modify this Agreement or to interpret this Agreement to extend only over the maximum period of time, range of actitives, or geographic areas as to which it may be enforceable.

7. SEVERANCE PAY: If MR. DELL’s employment is terminated without cause, whether or not a change in control of CNB has occurred. MR. DELL shall be entitled to severance benefits equal to 2.50 times his annualized base salary for the year in which his employment ends plus 2.50 times the average of MR. DELL’s incentive pay bonuses for the three (3) years preceding the year in which his employment is terminated hereunder. This severance pay shall be tendered to MR. DELL in cash in lump sum following the end of his employment with CNB. MR. DELL shall also be entitled to this severance pay if he voluntarily terminates his employment with CNB after a change in control for any of the following reasons after providing CNB notice within ninety (90) days of the occurrence of the event and a thirty (30) day opportunity to cure:

A. Reduction in title or responsibilities;

B. Assignment of duties or responsibilities inconsistent with MR. DELL’S status as Executive Vice President;

C. A reduction in salary or other benefits; and, or,

D. Reassignment to a location greater than 25 miles from the location of MR. DELL’s office on the date of change and control.

For the purposes of this Agreement, a “change in control” shall include but not be limited to the following:

1. Sale of all or substantially all of CNB’s or CNB Financial Corporation’s stock;

2. Sale of all or substantially all of CNB’s or CNB Financial Corporation’s assets;

3. Acquisition by a third party or group acting in concert of stock sufficient to elect a majority of directors to the Board of CNB or CNB Financial Corporation; or,

4. Ownership of more than 50% of CNB Financial Corporation stock by a single person or entity or more than one person or entity acting as a group.

Notwithstanding anything in this Agreement to the contrary, it will be a condition to MR. DELL’s right to receive any severance benefits under this Section 7 that he execute and deliver to CNB no later than fifty-three (53) days following the date of termination and not revoke a release of claims in favor of CNB in the form as may be reasonably prescribed by CNB. Severance payments and benefits will commence following the expiration of the sixty (60) day period following termination of employment, provided that MR. DELL has executed and delivered and not revoked the release no later than fifty-three (53) days following the date of termination and such release is effective upon the sixtieth (60^th) day following termination of employment.

A form of the release which MR. DELL will be required to sign in order to receive the foregoing benefits is attached hereto incorporated in this Agreement as Exhibit A, and MR. DELL hereby expressly approves it.

8. TERMINATION: This Agreement may be terminated on the occurrence of any of the following events and if terminated under this paragraph, MR. DELL shall not be entitled to severance benefits under Paragraph 7:

A. The execution of a written agreement between CNB and MR. DELL to terminate this Agreement;

B. MR. DELL’s death;

C. MR. DELL’s material breach of any term or condition of this Agreement;

D. MR. DELL’s failure or refusal to comply with such reasonable policies, directions, standards and regulations that CNB may establish from time to time;

E. MR. DELL’s inability to fully and competently perform his duties hereunder for a period of 180 continuous days due to physical, mental or psychological illness, injury or condition; or,

F. MR. DELL ceases to qualify for his offices and responsibilities under this Agreement pursuant to any statute or regulation, now or hereafter issued by the United States of America, the Federal Reserve, the Office of the Comptroller of Currency, the Pennsylvania Department of Banking or other regulatory agency or body duly invested with authority over CNB, its parent or affiliate(s).

9. NOTICES: All notices or communications required by or bearing upon this Agreement or between the Parties shall be in writing and sent by First Class Mail to the Parties as follows unless otherwise specified above:

CNB Financial Corporation	Joseph E. Dell. Jr.
CNB Dank	680D Oak Wood Avenue
Attention: Chairperson of the Board	State College, PA 16803
One South Second Street, P.O. Box 42 Clearfield., PA 16830

10. NON-ASSIGNMENT: The Parties acknowledge the unique nature of services to be provided by MR. DELL under this Agreement, the high degree of responsibility borne by him and the personal nature of his relationship to CNB’S Board of Directors and customers. Therefore, the Parties agree that MR. DELL may not assign this Agreement.

11. ARBITRATION: The Parties agree that all disputes or questions arising under this Agreement or because of their employment relationship shall be submitted to arbitration by three (3) arbitrators. Each Party shall select one (1) arbitrator, and then those two (2) arbitrators shall select a third (3) arbitrator. The arbitrators’ decision need not be unanimous. Arbitration shall be conducted at a private location in Clearfield County convenient to the parties. The arbitrators must reach and give notice of their decision within five (5) days after completion of an arbitration. The Pennsylvania Uniform Arbitration Act. 42 Pa.C.S.A. §57301 et sec. shall govern arbitrations hereunder. CNB shall compensate the arbitrators and stenographer if used. CNB shall also pay for the arbitration room. Each party shall pay their attorney fees and other costs.

12. LIMITATION ON PAYMENTS: In the event that the severance and other benefits provided for in this Agreement or otherwise payable to MR. DELL (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the ‘“Code”) and (ii) but for this Section 12, would be subject to the excise tax imposed by Section 4999 of the Code, than MR. DELL’s severance benefits shall be either:

A. delivered in full (the “Full Amount”), or

B. delivered as to such lesser extent which would result in no portion of such severance benefits being subject to the excise tax under Section 4999 of the Code (the “Reduced Amount”).

MR. DELL shall only be entitled to delivery of the Full Amount if, on an after-tax basis after taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, payment of the Full Amount would result in MR. DELL receiving an amount equal to or greater than 110% of the Reduced Amount. If MR. DELL is entitled to receive the Reduced Amount, the payments and/or benefits to be provided under this Agreement shall be reduced, but not below zero, by first reducing or eliminating those payments or benefits which are not payable in cash and then by reducing or eliminating cash payments. Unless CNB and MR. DELL otherwise agree in writing, any determination required under this Section 12 shall be made in writing by CNB’s independent public accountants, whose determination shall be conclusive and binding upon CNB and MR. DELL for all purposes. For purposes of making the calculations required by this Section 12, the accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. CNB and MR. DELL shall furnish such information and documents as the accountants may reasonably request in order to make a determination under this Section. CNB shall bear all costs the accountants may reasonably incur in connection with any calculations contemplated by this Section 12.

13. COMPLIANCE WITH SECTION 409A OF THE CODE: MR. DELL and CNB acknowledge that each of the payments and benefits promised to MR. DELL under this Agreement must either comply with the requirements of Section 409A of the Code (“Section 409A”), and the regulations thereunder or qualify for an exception from compliance. To that end, MR. DELL and CNB agree that the payment described in section 7 is intended to be excepted from compliance with Section 409A as a short-term deferral pursuant to Treasury Regulation Section 1.409A-1(b)(4).

In the case of a payment that is not excepted from compliance with Section 409A, and that is not otherwise designated to be paid immediately upon a permissible payment event within the meaning of Treasury Regulation Section 1.409A-3(a), the payment shall not be made prior to, and shall, if necessary, be deferred to and paid on the later of the date sixty (60) days after MR. DELL’s earliest separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)) and, if MR. DELL is a specified employee (within the meaning of Treasury Regulation Section 1.409A-1(i)) on the date of his separation from service, the first day of the seventh month following MR. DELL’s separation from service. Furthermore, this Agreement shall be construed and administered in such manner as shall be necessary to effect compliance with Section 409A.

14. INJUNCTIVE RELIEF: MR. DELL acknowledges and accepts that his compliance with his Agreements in Sections 5.6 and/or 8 is an integral part of the consideration to be received by CNR and is necessary to protect the equity value, business and goodwill and other proprietary interests of CNB. MR. DELL acknowledges that a breach of his Agreements in Sections 5.6 and/or 8 will result in irreparable and continuing damage to CNB and the business of CNB for which the remedies at law will be inadequate, and agrees that, in the event of any breach of the aforesaid Agreements. CNB and its successors and assigns shall be entitled to seek injunctive relief and to any such other and further relief as may be proper.

15. ENFORCEABILITY: If any provision of this Agreement shall be found by a court with proper jurisdiction to be invalid or unenforceable, in whole or in part, then such provision shall be deemed to be modified, narrowed, or restricted only to the limited extent and in the manner necessary to render the same valid and enforceable, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally incorporated herein as so modified, narrowed, or restricted.

16. GENERAL PROVISIONS:

A. This Agreement shall be governed by the laws of Pennsylvania;

B. In construing or interpreting this Agreement, “CNB” and “MR. DELL” shall mean, wherever applicable, the singular or plural, the masculine or the feminine, individual, individuals, partnership or corporation, as the case may be;

C. This Agreement represents the sole agreement of the parties on these subjects and supersedes all prior communications, representations and negotiations, whether oral or written;

D. This Agreement can only be modified or amended by the prior written consent of both parties hereto;

E. Jurisdiction and venue shall rest in the Court of Common Pleas of Clearfield, Pennsylvania, for all suits, claims and causes of action whatsoever;

F. Failure by either Party to pursue remedies or assert rights under this Agreement shall not be construed as waiver of that party’s rights or remedies, nor shall a party’s failure to demand strict compliance with the terms and conditions of this Agreement prohibit or estop that party from insisting upon strict compliance in the future; and

G. The Parties deem that the terms of this Agreement are unique, and in addition to their other rights and remedies at law, and at equity, either Party shall have the right to specifically enforce the terms of this Agreement.

H. This Agreement shall bind the Parties’ heirs, successors, representatives, related corporations and assigns.

I. Notwithstanding anything herein contained to the contrary, and payment to MR. DELL by CNB, whether pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with Section 18(k) of the Federal Deposit Insurance Act. 12 U.S.C. Section 1828(k), and any regulations promulgated thereunder.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date written above for the purposes herein contained.

CNB BANK		MR. DELL
By:	/s/ Joseph B. Bower, Jr.	By:	/s/ Joseph E. Dell, Jr.
	Joseph B. Bower, Jr.		Joseph E. Dell, Jr.
	CEO & President
By:	/s/ Richard L. Greslick, Jr.
	Richard L. Greslick, Jr.
	Senior Executive

EX-21

Exhibit 21

CNB FINANCIAL CORPORATION

Form 10-K For The Year Ended December 31, 2013

SUBSIDIARIES OF THE REGISTRANT

Name	Jurisdiction of Incorporation or Organization
CNB Bank	Banking Association Chartered in Pennsylvania Incorporated in Pennsylvania
CNB Securities Corporation	Investment Holding Company Incorporated in Delaware
County Reinsurance Company	Reinsurance Company Incorporated in Arizona
Holiday Financial Services Corporation	Consumer Loan Company Incorporated in Pennsylvania
CNB Insurance Agency	Insurance and Annuity Agency Incorporated in Pennsylvania

EX-23.1

Exhibit 23.1

CNB FINANCIAL CORPORATION

Form 10-K For The Year Ended December 31, 2013

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement No. 333-159941 on Form S-8 and Registration Statement Nos. 333-163047 and 333-185650, as amended, on Form S-3 of CNB Financial Corporation of our report dated March 7, 2014 with respect to the consolidated financial statements of CNB Financial Corporation and the effectiveness of internal control over financial reporting, which report is included in this Annual Report on Form 10-K of CNB Financial Corporation for the year ended December 31, 2013.

/s/ Crowe Horwath LLP

Crowe Horwath LLP

Cleveland, Ohio

March 7, 2014

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Joseph B. Bower, Jr., certify that:

1. I have reviewed this report on Form 10-K of CNB Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 7, 2014

/s/ Joseph B. Bower, Jr.

Joseph B. Bower, Jr.

President

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Brian W. Wingard, certify that:

1. I have reviewed this report on Form 10-K of CNB Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 7, 2014

/s/ Brian W. Wingard

Brian W. Wingard

Treasurer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

SARBANES-OXLEY ACT SECTION 906

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. section 1350, the undersigned officer of CNB Financial Corporation (the “Corporation”) hereby certifies, to such officer’s knowledge, that the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

	/s/ Joseph B. Bower, Jr.
	Joseph B. Bower, Jr.
Date: March 7, 2014	(President and Chief Executive Officer)

EX-32.2

Exhibit 32.2

SARBANES-OXLEY ACT SECTION 906

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. section 1350, the undersigned officer of CNB Financial Corporation (the “Corporation”) hereby certifies, to such officer’s knowledge, that the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

	/s/ Brian W. Wingard
	Brian W. Wingard
Dated: March 7, 2014	(Treasurer and Chief Financial Officer)

EX-99.1

Exhibit 99.1

TABLE OF CONTENTS

Consolidated Financial Highlights	4
Message to the Shareholders	5
Executive Management and Board of Directors	8
Officers	9
Shareholder Information	12

CNB FINANCIAL CORPORATION 2013 ANNUAL REPORT HIGHLIGHTS

2

FOR THE YEAR
	2013			2012			% Change
Interest Income	$	71,416		$	68,129			4.8	%
Interest Expense		12,212			14,920			(18.2	%)
Net Interest Income		59,204			53,209			11.3	%
Non-interest Income		13,766			12,664			8.7	%
Non-interest Expense		43,813			35,945			21.9	%
Net Income		16,679			17,136			(2.7	%)
Net Income Return on:
Average Assets		0.88	%		1.00	%		(12.0	%)
Average Equity		11.38	%		12.17	%		(6.5	%)
AT YEAR END
Assets	$	2,131,289		$	1,773,079			20.2	%
Loans, net of unearned		1,295,363			927,824			39.6	%
Deposits		1,835,314			1,485,003			23.6	%
Shareholders’ Equity		164,911			145,364			13.4	%
Trust Assets Under Management (at market value)		422,366			387,446			9.01	%
PER SHARE DATA
Net Income, diluted	$	1.29		$	1.38			(6.5	%)
Dividends		0.66			0.66			0.0	%
Book Value		11.43			11.65			(1.9	%)
Market Value		19.00			16.38			16.0	%

3

MESSAGE TO THE SHAREHOLDERS

To Our Shareholders, Customers, Employees & Friends:

2013 marked another first for CNB Financial Corporation. CNB is now operating in the state of Ohio as a result of its merger with The Farmers Citizens Bank and its parent company, FC Banc Corp., headquartered in Bucyrus, Ohio, on October 11, 2013. CNB added $360 million in assets and eight offices located in two distinct markets. The new markets will provide fresh opportunities for agricultural lending in the rural market, as well as business development opportunities in our first major metropolitan area, Co-lumbus, Ohio. CNB’s strategy has been to grow organically in our markets with quality bankers from that market or to create a de novo presence in markets that fit our business model. This merger provided an opportunity to gain entry in Ohio and leverage the expertise of the employees of The Farmers Citizens Bank, now FCBank, to continue growing organically in the new markets.

In 2013, excluding the acquired assets and liabilities, loans for CNB grew 13% while deposits did not change significantly from 2012. Pre-tax net income, excluding merger related expenses and gain on sale of securities, increased 13%, an indication that the growth in core earnings remains strong, with even greater opportunities for growth as a result of the merger.

Earnings for 2013 were positive even with the merger costs included. CNB’s return on average equity was 11.38% and earnings per share was $1.29. As previously announced, the merger is expected to be accretive to earnings during 2014. In addition, the change in asset composition from investments to loans should provide us with a much improved loan to deposit ratio and an enhanced net interest margin and earnings.

CNB FINANCIAL CORPORATION 2013 ANNUAL REPORT HIGHLIGHTS

4

5

Message to the Shareholders continued…

A key focus for all financial companies is the quality of their assets. CNB has a long history of high asset quality, with its loan metrics continuing to be strong and improving. CNB’s ratio of non-performing assets to total assets improved to 0.61% in 2013 from 0.85% in 2012 and its charge-offs as a percentage of average loans at decreased from 0.55% in 2012 to 0.38% in 2013. The loan portfolio mix of Commercial & Industrial, Commercial Real Estate and Residential Real Estate provides for good diversity in the portfolio. With the new markets and a chance to grow the agricultural portfolio, the lending portfolio diversification will also be enhanced by greater geographical diversity.

The merger with The Farmers Citizens Bank was our major highlight for 2013 but was not our only significant event. Throughout 2013, the major expansion of our main office in Clearfield has been underway. At the writing of last year’s letter, we expected to open the facility in the fourth quarter of 2013. Although the date of the opening was delayed until March of 2014, the expanded office will be fully operational at the time of this year’s annual meeting. The office will have the open floor plan first used in ERIE-BANK which provides the customer with a more inviting approach to banking. During 2013, we also upgraded our Indiana, PA loan production office to a full service location in order to better serve that market. Finally, Holiday Financial Services opened a new location in Indiana, PA in 2013 while relocating both the Ebensburg and Bellefonte stores to locations that are more convenient to our customers.

Charles H. Reams retired from our Board of Directors in January 2014. Chuck served for seven years as a Director of the Corporation and CNB Bank. Chuck was very instrumental in CNB gaining entry in the Erie market and with the formation and success of ERIEBANK. Chuck played a crucial role on our ERIEBANK advisory board since its founding and will remain a member of the advisory board. On behalf of the Board and Management, I would like to thank Chuck for his years of service and wish him well in all of his future endeavors.

As always, we are proud to report CNB Financial Corporation’s 2013 results. We thank you for your continued ownership in CNB and look forward to another prosperous year in 2014.

Joseph B. Bower, Jr.

President and Chief Executive Officer

CNB FINANCIAL CORPORATION 2013 ANNUAL REPORT HIGHLIGHTS

6

EXECUTIVE MANAGEMENT & BOARD OF DIRECTORS

Corporate Officers, CNB Financial Corporation

Joseph B. Bower, Jr.	Brian W. Wingard
President & Chief Executive Officer	Treasurer & Principal Financial Officer
Richard L. Greslick, Jr.	Vincent C. Turiano
Secretary	Assistant Secretary
Executive Officers, CNB Bank
Joseph B. Bower, Jr.	Mary Ann Conaway
President & Chief Executive Officer	Senior Vice President, Human Resources
Mark D. Breakey
Executive Vice President &	Joseph E. Dell, Jr.
Chief Credit Officer	Senior Vice President & Chief
Richard L. Greslick, Jr.	Lending Officer
Executive Vice President, Chief	Leanne D. Kassab
Operating Officer	Senior Vice President, Marketing
Brian W. Wingard	Vincent C. Turiano
Senior Vice President & Chief Financial	Senior Vice President, Operations
Officer
Board of Directors
CNB Financial Corporation and CNB Bank	Robert D. Hord	Nick Scott, Jr.
Dennis L. Merrey	President of Hord Livestock Company,	Vice President & Owner, Scott
Chairman of the Board	Inc. (Agriculture)	Enterprises (Hospitality Industry)
Retired, Formerly President,	Robert W. Montler	Richard B. Seager
Clearfield Powdered Metals, Inc.	President & Chief Executive Officer,	President and Chief Executive Officer,
(Manufacturer)	Lee Industries and Keystone Process	Beacon Light Behavioral Health
Joseph B. Bower, Jr.	Equipment (Manufacturer)	Systems (Health Services)
President and Chief Executive	Joel E. Peterson	Peter F. Smith
Officer, CNB Financial Corporation;	President, Clearfield Wholesale Paper	Attorney at Law
President and Chief Executive	(Wholesaler)	DIRECTOR EMERITUS
Officer, CNB Bank	Deborah Dick Pontzer
William F. Falger	Economic Development and Workforce	L. E. Soult, Jr.
Retired, Formerly President and	Specialist, Office of Congressman
Chief Executive Officer, CNB	Glenn Thompson
Financial Corporation, CNB Bank	Jeffrey S. Powell
Richard L. Greslick, Jr.	President, J.J. Powell, Inc. (Petroleum
Executive Vice President & Chief	Distributor)
Operating Officer, CNB Bank;	James B. Ryan
Secretary, CNB Financial Corporation	Retired, Formerly Vice President of
	Sales, Marketing, Windfall Products,
	Inc. (Manufacturer)

7

OFFICERS

Administrative Services
Timothy A. Bracken	Shannon L. Irwin	Susan B. Kurtz
Vice President, Controller	Assistant Vice President, Human	Customer Service Officer
Edward H. Proud	Resources	Dennis J. Sloppy
Vice President, Information Systems	Carolyn B. Smeal	Information Systems Officer
Susan M. Warrick	Assistant Vice President, Operations	B.J. Sterndale
Vice President, Operations	Becky Coleman	Training Officer
Thomas J. Ammerman, Jr.	Operations Officer	Brenda L. Terry
Assistant Vice President, Security	Carol J. Cossick	Banking Officer
Donna J. Collins	Assistant Controller
Assistant Vice President,	Thomas W. Grice
Compliance	Network Administration Officer
Branch Division
Ruth Anne Ryan-Catalano	Denise J. Greene	Susan J. Shimmel
Vice President, Regional Branch	Community Officer Manager,	Community Officer Manager,
Administration, Industrial Park Road	DuBois Officer	Old Town Road Officer, Clearfield
Officer, Clearfield	Lynette Hebel	Pam Synder
Vickie L. Baker	Community Office Manager, Karthaus	Community Officer Manager, Kane
Assistant Vice President, Regional	and Kylertown Officer	Office
Branch Administration, Bradford Main	Caroline Henry	Larry A. Putt
Street Officer	Community Office Manager,	Banking Officer, Clearfield
Mary A. Baker	Presqueisle Street Office, Philipsburg	Nadine J. Rodgers
Assistant Vice President, Northern	Douglas M. Shaffer	Banking Officer, Indiana
Cambria Officer	Community Office Manager,	Mary Ann Roney
Lori Curtis	Punxsutawney Office	Banking Officer, Bradford
Community Officer Manager, Plaza	Lori D. Shimel	Gregory R. Williams
Office, Philipsburg	Community Office Manager,	Banking Officer, Clearfield
	Houtzdale and Madera Offices
Lending Division
Jeffrey W. Alabran	Michael C. Sutika	Eileen F. Ryan
Senior Vice President, Commercial	Vice President, Commercial Banking,	Assistant Vice President, Mortgage
Banking, Indiana	Clearfield	Lending
Gregory M. Dixon	Joseph H. Yaros	Russell Daniels
Vice President, Commercial Banking,	Vice President, Commercial Banking,	Assistant Commercial Lending Officer,
Clearfield	Bradford	St. Marys
Michael E. Haines	David W. Ogden	James C. Davidson
Vice President, Commercial Banking,	Vice President, Credit Administration	Mortgage Lending Officer, Philipsburg
St. Marys	Christopher L. Stott	Autumn F. Farley
Robin L. Hay	Vice President, Retail Lending	Commercial Loan Portfolio Manager &
Vice President, Commercial Banking,	C. Brett Stewart	Support Lending Officer
Clearfield	Assistant Vice President, Commercial	Cory Johnston
Karen R. Pfingstler	Banking, Indiana	Credit Administration Officer
Vice President, Commercial Banking,		Paul A. McDermott
DuBois		Collections Officer
Wealth & Asset Management Services
Craig C. Ball	Calvin R. Thomas, Jr.	Eric A. Johnson
Vice President, Wealth & Asset	Vice President, Wealth & Asset	Assistant Vice President, Wealth &
Management	Management	Asset Management
Glenn R. Pentz	Shawn Amblod	R. Michael Love
Vice President, Wealth & Asset	Assistant Vice President, Wealth &	Assistant Vice President, Wealth &
Management	Asset Management	Asset Management
Andrew Roman
Vice President, Wealth & Asset
Management

CNB FINANCIAL CORPORATION 2013 ANNUAL REPORT HIGHLIGHTS

8

OFFICERS & AFFILIATES

ERIEBANK, a Division of CNB Bank
David J. Zimmer	William J. Vitron, Jr.	Theresa L. Swanson
President	Vice President, ERIEBANK Investment	Community Office Manager,
Scott Bailey	Advisors	Warren Office
Senior Vice President,	Carla M. LaBoda	Mary J. Taormina
ERIEBANK Investment Advisors	Assistant Vice President, Commercial	Community Office Manager,
Steven M. Cappellino	Banking	Meadville Office
Senior Vice President, Commercial	Gregory Noon	Abby L. Williams
Banking, Meadville Office	Assistant Vice President, Commercial	Community Office Manager,
Donald W. Damon	Banking, Warren	Interchange Office
Senior Vice President, Private Banking	Paul D. Sallie	Kelly S. Buck
William L. DeLuca, Jr.	Assistant Vice President, Private	Private Banking Officer
Senior Vice President, Commercial Banking	Banking
	Katie J. Jones	Allison Hodas
Betsy Bort	Regional Retail Administrator,	Cash Management Officer
Vice President, Commercial Banking	Community Office Manager,	Julie L. Martin
Scott O. Calhoun	Harborcreek Office	Operations Officer
Vice President, Commercial Banking	Andrea G. Carr	James Miale
Kristen L. Ludwig	Community Office Manager,	Commercial Lending Officer
Vice President, Commercial Banking	Downtown Erie Office	Timothy Roberts
Larry Morton	Debra Masone	Commercial Lending Officer
Vice President, ERIEBANK Investment	Community Office Manager,
Advisors	Vernon Township Office
John M. Schulze	Helicia E. Sonney
Vice President, Commercial Banking	Community Office Manager,
	Asbury Road Office
ERIEBANK Regional Board of Directors
Joseph B. Bower, Jr.	Charles Hagerty
President and Chief Executive Officer,	President, Hamot Health Foundation
CNB Financial Corporation, CNB Bank	(Health Services)
Mark D. Breakey	Thomas Kennedy
Executive Vice President & Chief Credit	President, Professional Development
Officer, CNB Bank	Associates, Inc. (Real Estate developer)
Gary L. Clark	Charles H. Reams
Vice President, Chief Financial Officer	President, C. H. Reams & Associates,
and Chief Administrative Officer,	Inc. (Insurance)
Snap-tite, Inc. (Manufacturer)	Nick Scott, Jr.
David K. Galey	Vice President & Owner, Scott
Treasurer, Chief Financial Officer,	Enterprises (Hospitality Industry)
Greenleaf Corporation (Manufacturer)	James E. Spoden
James E. Gehrlein	Esquire, MacDonald Illig Jones &
Chief Financial Officer, Sisters of St.	Britton, LLP (Law office)
Joseph of NW PA (Finance)	David J. Zimmer
Richard L. Greslick, Jr.	President, ERIEBANK
Executive Vice President and Chief
Operating Officer, CNB Bank;
Secretary, CNB Financial Corporation

9

FCBank, a Division of CNB Bank
J. Andrew Dale	Brian A. McFarland	Michelle P. Muchow
Interim President	Community Office Manager, Upper	Banking Officer, Bucryus North Office
Louis J. Torchio	Arlington Office	Toni M. Ridge
Senior Vice President, Private Banking	Elaine M. Wilson	Banking Officer, Bucyrus North Office
Terrance E. Hamm	Community Office Manager,	Jason M. Shade
Vice President, Commercial Banking	Fredericktown Office	Banking Officer, Bucyrus North Office
Donna M. Conley	Teri A. Slate	Travis M. Smith
Assistant Vice President, Lending	Community Office Manager, Shiloh Office	Operations Officer
Elizabeth M. Ricketts		Ashley Snyder
Assistant Vice President, Regional	Brian C. Bach	Agricultural Lending Officer
Branch Administration	Agriculture Loan Officer
Annette D. Lester	Jared Butler
Community Office Manager,	Network Adminstrator, Facilities Officer
Cardington Office	William R. Diehl
Clara J. McClung	Banking Officer, Dublin Office
Community Office Manager,	Jennifer S. Gingery
Worthington Office	Operations Officer
FCBank, Regional Board of Directors
Joseph B. Bower, Jr.	Scott Everhart	Patrick Hord
President and Chief Executive Officer,	President and CEO, Everhart Advisors	CEO, Hord Livestock, Inc. (Agriculture)
CNB Financial Corporation, CNB Bank	(Investments)	Lawrence A. Morrison
Mark D. Breakey	Richard L. Greslick, Jr.	CPA and Partner, Kleshinski, Morrison
Executive Vice President & Chief Credt	Executive Vice President and Chief	& Morris, LLP (Accounting)
Officer, CNB Bank	Operating Officer, CNB Bank;	J. Andrew Dale
David G. Dostal	Secretary, CNB Financial Corporation	Interim President
President, The Auck Dostal Agency,	Robert D. Hord
Inc., Vice President, ADM Benefit	President, Hord Livestock, Inc.
Plans, Inc. (Insurance)	(Agriculture)
Patrick J. Drouhard
Retired, Superintentdent, Cardington-
Lincoln School District (Education)
Holiday Financial Services Corporation, a Subsidiary of CNB Financial Corporation
BOARD OF DIRECTORS	Christopher L. Stott	CORPORATE OFFICERS
Joseph B. Bower, Jr.	Director	Christopher L. Stott
Chairman	Brian W. Wingard	Chairman
Richard L. Greslick, Jr.	Director	Joseph P. Strouse
Secretary		President
CNB Securities Corporation, a Subsidiary of CNB Financial Corporation, Wilmington, DE
BOARD OF DIRECTORS	CORPORATE OFFICERS	Elizabeth F. Bothner
Timothy A. Bracken	Brian W. Wingard	Secretary, Wilmington Trust SP
Director	President	Services, Inc
Glenn R. Pentz	Donald R. McLamb, Jr.
Director	Treasurer, Wilmington Trust SP
Donald R. McLamb, Jr.	Services, Inc.
Wilmington Trust SP Services, Inc.

CNB FINANCIAL CORPORATION 2013 ANNUAL REPORT HIGHLIGHTS

10

SHAREHOLDER INFORMATION

Annual Meeting

The Annual Meeting of the Shareholders of CNB Financial Corporation will be held Tuesday, April 15, 2014 at 2:00 p.m. at the Corporation’s Headquarters in Clearfield, PA.

Corporate Address

CNB Financial Corporation

1 S. Second Street

P.O. Box 42

Clearfield, PA 16830

(814) 765-9621

Stock Transfer Agent & Registrar

Registrar and Transfer Company

10 Commerce Drive

Cranford, NJ 07016

(800) 368-5948

www.rtco.com

Form 10-K

Shareholders may obtain a copy of the Annual Report to the Securities and Exchange Commission on Form 10-K by writing to:

CNB Financial Corporation

1 S. Second Street

P.O. Box 42

Clearfield, PA 16830

ATTN: Shareholder Relations

Quarterly Share Data

For information regarding the Corporation’s quarterly share data, please refer to Item 5 in the 2013 Form 10-K.

Market Makers

The following firm has chosen to make a market in the stock of the Corporation. Inquiries concerning their services should be directed to:

Boenning & Scattergood, Inc.

1700 Market Street, Ste 1420

Philadelphia, PA 19103

(800) 842-8928

11

SHAREHOLDER INFORMATION

Corporate Profile

CNB Financial Corporation is a leader in providing integrated financial solutions which create value for both consumers and businesses. These solutions encompass checking, savings, time and deposit accounts, Private Banking, loans and lines of credit (real estate, commercial, industrial, residential and consumer), credit cards, cash management, online banking, mobile banking, merchant credit card processing, on-site banker and accounts receivable handling. In addition, the Corporation provides wealth and asset management services, retirement plans and other employee benefit plans.

CNB Bank

A subsidiary of CNB Financial Corporation, CNB is a regional independent community bank in North Central Pennsylvania with approximately 400 employees who make customer service more responsive and reliable. For over 145 years, the Bank has strived to be more customer-driven than its competitors and to build long-term customer relationships by being reliable and competitively priced.

CNB continually seeks innovative ways to execute a personal, quality-driven customer service strategy and prides itself being first-to-market for many of these innovations. To satisfy customers’ financial needs and expectations, it offers a variety of delivery channels, which includes 22 full-service offices, 19 ATMs, telephone banking (1-866-224-7314), Internet banking (www.bankcnb.com), mobile banking, and a centralized customer service center (1-800-492-3221).

ERIEBANK

Headquartered in Erie, Pennsylvania, ERIEBANK is a division of CNB Bank. Presently, there are a total of seven full service offices which house its commercial, retail and Private Banking divisions. Four of those offices are in Erie, two in Meadville, and one in Warren, Pennsylvania. In addition, ERIEBANK Investment Advisors provides wealth and asset management services, retirement plans and other employee benefit plans.

FCBANK

FCBank, a division of CNB Bank, is headquartered in Bucyrus, Ohio with eight full service offices in the communties of Bucyrus, Shiloh, Mt. Hope, Carding-ton, Fredericktown, Worthington and Upper Arling-ton, and one loan production office in Dublin, Ohio. FCBank is driven by a strong focus on meeting the financial heeds of businesses and individuals in a way only a community bank can deliver. FCBank offers commercial, retail, and Private Banking services.

Holiday Financial Services

Holiday Financial Services, a subsidiary of CNB Financial Corporation, is a consumer loan company, currently has eleven conveniently located offices in State College, Bradford, Clearfield, Hollidays-burg, Erie, Northern Cambria, Ridgway, Johnstown, Ebensburg, DuBois and Indiana, Pennsylvania.

CNB FINANCIAL CORPORATION 2013 ANNUAL REPORT HIGHLIGHTS

12

The common stock of the Corporation trades on the NASDAQ National Market under the symbol CCNE.

13

XML

Foreclosed Assets (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Summary of Foreclosed Assets Activity

Activity for the years ended December 31, 2013, 2012, and 2011 is as follows:

	2013			2012			2011
Balance, beginning of year	$	325		$	505		$	396
Additions		1,151			750			249
Sales (at carrying value)		(490	)		(930	)		(140	)
Balance, end of year	$	986		$	325		$	505

Summary of Expenses Related to Foreclosed Real Estate

Expenses related to foreclosed real estate include:

	2013			2012			2011
Net loss (gain) on sale	$	(252	)	$	(158	)	$	(101	)
Operating expenses, net of rental income		81			176			24
	$	(171	)	$	18		$	(77	)

XML

Stock-Based Compensation - Summary of Options Outstanding and Exercisable (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Exercise Price	$ 16.04
Number of options outstanding and exercisable shares	35,500	75,500
Options outstanding Weighted Average Remaining Contractual Term	1 year

XML

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Segment	Dec. 31, 2012	Dec. 31, 2011
Summary Of Significant Accounting Policies [Line Items]
Number of reportable operating segment	1
Maturity period of Interest bearing deposits in other financial institutions	1 year
Period of delinquent loan	90 days
Loss history of portfolio segment determination period	2 years
Advertising costs	$ 939	$ 859	$ 822
Number of nonqualified options or restricted stock for key employees and independent director	500,000
Description of award terms	For key employees, the plan vesting schedule is one-fourth of granted stock-based awards per year beginning one year after the grant date with 100% vested on the fourth anniversary. For independent directors, the vesting schedule is one-third of granted stock-based awards per year beginning one year after the grant date with 100% vested on the third anniversary.
Unrecognized compensation cost related to nonvested stock options granted under this plan	0	0
Stock options, granted	0	0
Shares granted by Executive Compensation and Personnel Committee of the Board of Directors	31,500	26,900	17,900
Compensation expense restricted stock awards	390	277	213
Average amount of non interest bearing reserve with federal reserve bank	$ 50	$ 50
Independent Directors [Member]
Summary Of Significant Accounting Policies [Line Items]
Starting period of vesting of stock based award	1 year
Aggregate percentage of stock based awards to be matured	100.00%
Key Employees [Member]
Summary Of Significant Accounting Policies [Line Items]
Starting period of vesting of stock based award	1 year
Aggregate percentage of stock based awards to be matured	100.00%
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of tax benefit realized	50.00%
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Period of Consumer loans charged off	180 days
Premises and Equipment [Member] | Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment	3 years
Premises and Equipment [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment	39 years
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment	3 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment	10 years
Buildings and Building Improvements [Member] | Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment	15 years
Buildings and Building Improvements [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Useful lives of premises and equipment	39 years
Core Deposit [Member]
Summary Of Significant Accounting Policies [Line Items]
Amortization of intangible assets	7 years

XML

Capital Requirements and Restrictions on Retained Earnings (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of Actual and Required Capital Amounts and Ratios

Actual and required capital amounts and ratios are presented below as of December 31, 2013 and 2012:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2013
Total Capital to Risk Weighted Assets
Consolidated		$183,984		13.72	%		$107,316		8.0	%		N/A
Bank		$166,440		12.57	%		$105,912		8.0	%		$132,390		10.0	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated		$167,773		12.51	%		$53,658		4.0	%		N/A
Bank		$151,585		11.45	%		$52,956		4.0	%		$79,434		6.0	%
Tier 1 (Core) Capital to Average Assets
Consolidated		$167,773		7.96	%		$84,332		4.0	%		N/A
Bank		$151,585		7.39	%		$82,078		4.0	%		$102,597		5.0	%
December 31, 2012
Total Capital to Risk Weighted Assets
Consolidated		$152,968		15.28	%		$80,073		8.0	%		N/A
Bank		$131,788		13.46	%		$78,324		8.0	%		$97,905		10.0	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated		$140,426		14.03	%		$40,036		4.0	%		N/A
Bank		$119,534		12.21	%		$39,162		4.0	%		$58,743		6.0	%
Tier 1 (Core) Capital to Average Assets
Consolidated		$140,426		8.06	%		$69,726		4.0	%		N/A
Bank		$119,534		6.99	%		$68,409		4.0	%		$85,512		5.0	%

XML

Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Securities Available For Sale:
Securities available for sale	$ 685,991	$ 737,311
Trading Securities:
Trading securities	4,127	4,459
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Securities Available For Sale:
Securities available for sale	985	54,169
Trading Securities:
Trading securities	3,923	4,300
Liabilities:
Interest rate swaps	0	0
Significant Other Observable Inputs (Level 2) [Member]
Securities Available For Sale:
Securities available for sale	684,345	680,562
Trading Securities:
Trading securities	204	159
Liabilities:
Interest rate swaps	(1,116)	(1,745)
Significant Unobservable Inputs (Level 3) [Member]
Securities Available For Sale:
Securities available for sale	661	2,580
Trading Securities:
Trading securities	0	0
Liabilities:
Interest rate swaps	0	0
Fair Value Measurement on Recurring Basis [Member]
Securities Available For Sale:
Securities available for sale	685,991	737,311
Trading Securities:
Trading securities	4,127	4,459
Fair Value Measurement on Recurring Basis [Member] | U.S. Treasury [Member]
Securities Available For Sale:
Securities available for sale	0	4,036
Fair Value Measurement on Recurring Basis [Member] | U.S. Government Sponsored Entities [Member]
Securities Available For Sale:
Securities available for sale	181,625	163,781
Trading Securities:
Trading securities	52	58
Fair Value Measurement on Recurring Basis [Member] | States and Political Subdivisions [Member]
Securities Available For Sale:
Securities available for sale	177,943	181,279
Fair Value Measurement on Recurring Basis [Member] | Residential and Multi-Family Mortgage [Member]
Securities Available For Sale:
Securities available for sale	242,607	316,822
Fair Value Measurement on Recurring Basis [Member] | Commercial Mortgage [Member]
Securities Available For Sale:
Securities available for sale	374	1,304
Fair Value Measurement on Recurring Basis [Member] | Corporate Notes and Bonds [Member]
Securities Available For Sale:
Securities available for sale	14,075	15,024
Trading Securities:
Trading securities	152	101
Fair Value Measurement on Recurring Basis [Member] | Pooled Trust Preferred [Member]
Securities Available For Sale:
Securities available for sale	661	600
Fair Value Measurement on Recurring Basis [Member] | Pooled SBA [Member]
Securities Available For Sale:
Securities available for sale	67,721	52,927
Fair Value Measurement on Recurring Basis [Member] | Other Securities [Member]
Securities Available For Sale:
Securities available for sale	985	1,538
Fair Value Measurement on Recurring Basis [Member] | Corporate Equity Securities [Member]
Trading Securities:
Trading securities	2,705	3,117
Fair Value Measurement on Recurring Basis [Member] | Certificates of Deposit [Member]
Trading Securities:
Trading securities	253	408
Fair Value Measurement on Recurring Basis [Member] | International Mutual Funds [Member]
Trading Securities:
Trading securities	259	287
Fair Value Measurement on Recurring Basis [Member] | Large Cap Growth Mutual Funds [Member]
Trading Securities:
Trading securities	197	157
Fair Value Measurement on Recurring Basis [Member] | Money Market Mutual Funds [Member]
Trading Securities:
Trading securities	124	110
Fair Value Measurement on Recurring Basis [Member] | Large Cap Value Mutual Funds [Member]
Trading Securities:
Trading securities	129	104
Fair Value Measurement on Recurring Basis [Member] | Real Estate Investment Trust Mutual Funds [Member]
Trading Securities:
Trading securities	39	65
Fair Value Measurement on Recurring Basis [Member] | Small Cap Mutual Funds [Member]
Trading Securities:
Trading securities	83	26
Fair Value Measurement on Recurring Basis [Member] | Mid Cap Mutual Funds [Member]
Trading Securities:
Trading securities	84	26
Fair Value Measurement on Recurring Basis [Member] | Interest Rate Swaps [Member]
Liabilities:
Interest rate swaps	(1,116)	(1,745)
Fair Value Measurement on Recurring Basis [Member] | Commodities Mutual Funds [Member]
Trading Securities:
Trading securities	50
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Securities Available For Sale:
Securities available for sale	985	54,169
Trading Securities:
Trading securities	3,923	4,300
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Sponsored Entities [Member]
Securities Available For Sale:
Securities available for sale	0	0
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | States and Political Subdivisions [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential and Multi-Family Mortgage [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial Mortgage [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Notes and Bonds [Member]
Securities Available For Sale:
Securities available for sale	0	0
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pooled Trust Preferred [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pooled SBA [Member]
Securities Available For Sale:
Securities available for sale	0	52,631
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Securities [Member]
Securities Available For Sale:
Securities available for sale	985	1,538
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Equity Securities [Member]
Trading Securities:
Trading securities	2,705	3,117
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of Deposit [Member]
Trading Securities:
Trading securities	253	408
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | International Mutual Funds [Member]
Trading Securities:
Trading securities	259	287
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Large Cap Growth Mutual Funds [Member]
Trading Securities:
Trading securities	197	157
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Mutual Funds [Member]
Trading Securities:
Trading securities	124	110
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Large Cap Value Mutual Funds [Member]
Trading Securities:
Trading securities	129	104
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Real Estate Investment Trust Mutual Funds [Member]
Trading Securities:
Trading securities	39	65
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Small Cap Mutual Funds [Member]
Trading Securities:
Trading securities	83	26
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mid Cap Mutual Funds [Member]
Trading Securities:
Trading securities	84	26
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Swaps [Member]
Liabilities:
Interest rate swaps	0	0
Fair Value Measurement on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commodities Mutual Funds [Member]
Trading Securities:
Trading securities	50
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Securities Available For Sale:
Securities available for sale	684,345	680,562
Trading Securities:
Trading securities	204	159
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury [Member]
Securities Available For Sale:
Securities available for sale	0	4,036
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Sponsored Entities [Member]
Securities Available For Sale:
Securities available for sale	181,625	163,781
Trading Securities:
Trading securities	52	58
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | States and Political Subdivisions [Member]
Securities Available For Sale:
Securities available for sale	177,943	181,279
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Residential and Multi-Family Mortgage [Member]
Securities Available For Sale:
Securities available for sale	242,607	316,822
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage [Member]
Securities Available For Sale:
Securities available for sale	374	1,304
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Notes and Bonds [Member]
Securities Available For Sale:
Securities available for sale	14,075	13,044
Trading Securities:
Trading securities	152	101
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Pooled Trust Preferred [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Pooled SBA [Member]
Securities Available For Sale:
Securities available for sale	67,721	296
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Securities [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Equity Securities [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | International Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Large Cap Growth Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money Market Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Large Cap Value Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Real Estate Investment Trust Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Small Cap Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mid Cap Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swaps [Member]
Liabilities:
Interest rate swaps	(1,116)	(1,745)
Fair Value Measurement on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commodities Mutual Funds [Member]
Trading Securities:
Trading securities	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Securities Available For Sale:
Securities available for sale	661	2,580
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government Sponsored Entities [Member]
Securities Available For Sale:
Securities available for sale	0	0
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | States and Political Subdivisions [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Residential and Multi-Family Mortgage [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Notes and Bonds [Member]
Securities Available For Sale:
Securities available for sale	0	1,980
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pooled Trust Preferred [Member]
Securities Available For Sale:
Securities available for sale	661	600
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pooled SBA [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Securities [Member]
Securities Available For Sale:
Securities available for sale	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Equity Securities [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of Deposit [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | International Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Large Cap Growth Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money Market Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Large Cap Value Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Real Estate Investment Trust Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Small Cap Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mid Cap Mutual Funds [Member]
Trading Securities:
Trading securities	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swaps [Member]
Liabilities:
Interest rate swaps	0	0
Fair Value Measurement on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commodities Mutual Funds [Member]
Trading Securities:
Trading securities	$ 0

XML

Loans - Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowances for loan losses, Beginning Balance				$ 14,060				$ 12,615	$ 14,060	$ 12,615	$ 10,820
Charge-offs									(5,630)	(5,190)	(3,356)
Recoveries									1,666	254	214
Provision for loan losses	1,247	846	3,115	930	2,343	1,188	1,746	1,104	6,138	6,381	4,937
Allowances for loan losses, Ending Balance	16,234				14,060				16,234	14,060	12,615
Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowances for loan losses, Beginning Balance				4,940				4,511	4,940	4,511	3,517
Charge-offs									(958)	(2,871)	(1,796)
Recoveries									7	45	9
Provision for loan losses									2,290	3,255	2,781
Allowances for loan losses, Ending Balance	6,279				4,940				6,279	4,940	4,511
Commercial Mortgages [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowances for loan losses, Beginning Balance				4,697				4,470	4,697	4,470	3,511
Charge-offs									(1,931)	(401)	(175)
Recoveries									1,430	0	0
Provision for loan losses									1,273	628	1,134
Allowances for loan losses, Ending Balance	5,469				4,697				5,469	4,697	4,470
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowances for loan losses, Beginning Balance				2,466				1,991	2,466	1,991	1,916
Charge-offs									(467)	(304)	(217)
Recoveries									5	1	13
Provision for loan losses									876	778	279
Allowances for loan losses, Ending Balance	2,880				2,466				2,880	2,466	1,991
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowances for loan losses, Beginning Balance				1,699				1,404	1,699	1,404	1,561
Charge-offs									(1,919)	(1,279)	(907)
Recoveries									114	91	88
Provision for loan losses									1,439	1,483	662
Allowances for loan losses, Ending Balance	1,333				1,699				1,333	1,699	1,404
Credit Cards [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowances for loan losses, Beginning Balance				83				71	83	71	96
Charge-offs									(97)	(78)	(39)
Recoveries									16	18	10
Provision for loan losses									64	72	4
Allowances for loan losses, Ending Balance	66				83				66	83	71
Overdrafts [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowances for loan losses, Beginning Balance				175				168	175	168	219
Charge-offs									(258)	(257)	(222)
Recoveries									94	99	94
Provision for loan losses									196	165	77
Allowances for loan losses, Ending Balance	$ 207				$ 175				$ 207	$ 175	$ 168

XML

Fair Value - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Securities	Dec. 31, 2012 Securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of securities transferred from level 2 to level 1	0	0
Impaired loans, principal balance	$ 19,808	$ 29,225
Impaired loans allowance	1,882	1,852
Pooled SBA [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage and asset backed securities	52,631
Collateral Dependent Loans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans, principal balance	8,161	12,535
Impaired loans allowance	1,455	1,738
Impaired loans, additional provisions	$ 1,415	$ 2,558

XML

Business Combination - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended			0 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Oct. 11, 2013 Farmers Citizens Bank [Member]	Mar. 31, 2013 Farmers Citizens Bank [Member] Location	Dec. 31, 2013 Farmers Citizens Bank [Member]	Dec. 31, 2012 Farmers Citizens Bank [Member]
Business Acquisition [Line Items]
Outstanding equity interests of FC Banc Corp.					100.00%
Business acquisition share price				$ 17.91	$ 30.00
Number of branch locations					8
Total consideration paid to FC Banc Corp. shareholders		$ 1,248		$ 41,600		$ 41,574
Total consideration paid to FC Banc Corp. shareholders in cash	0	1,248	0	8,000		8,013
Total consideration paid to FC Banc Corp. shareholders in shares				1,873,879
Total value of common stock				33,600		33,561
Merger cost	2,396	0	0
Deferred tax asset included in accrued interest receivable and other assets	13,660	(4,013)				5,696
Loans acquired with evidence of credit quality deterioration	2,225
Gross loans acquired	256,418
Combined yield and credit mark	8,681
Goodwill arising from Acquisition	$ 27,194	$ 10,946	$ 10,821			$ 16,248	$ 125

XML

Loans - Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	$ 758,996	$ 518,882
Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	291,704	257,091
Commercial Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	467,292	261,791
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	671,744	460,129
Pass [Member] | Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	266,868	234,835
Pass [Member] | Commercial Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	404,876	225,294
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	22,132	18,935
Special Mention [Member] | Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	5,377	6,641
Special Mention [Member] | Commercial Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	16,755	12,294
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	64,254	38,960
Substandard [Member] | Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	19,318	15,459
Substandard [Member] | Commercial Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	44,936	23,501
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	866	858
Doubtful [Member] | Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	141	156
Doubtful [Member] | Commercial Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing receivable recorded investment	$ 725	$ 702

XML

Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Unrecognized tax benefit	$ 0	$ 0
Income tax matters accrued interest or penalties	0	0
Income tax examination, open tax year description	Tax years 2010 through 2012 remain open to federal and state examination.
Farmers Citizens Bank [Member]
Business Acquisition [Line Items]
Net operating loss carryforward, amount	$ 6,367
Net operating loss carryforward, expiration year	2033

XML

Deferred Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2013

Postemployment Benefits [Abstract]

Summary of Changes in Deferred Compensation Plan Liability

A summary of changes in the deferred compensation plan liability follows:

	2013			2012			2011
Balance, beginning of year	$	990		$	987		$	1,038
Deferrals, dividends, and changes in fair value recorded as an expense		191			84			80
Deferred compensation payments		(81	)		(81	)		(131	)
Balance, end of year	$	1,100		$	990		$	987

XML

Business Combination (Tables)

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid for FC Banc Corp. and the amounts of the assets acquired and liabilities assumed that were recognized at the acquisition date:

Consideration paid:
Cash	$	8,013
Common stock		33,561
Fair value of total consideration transferred		41,574
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		54,995
Securities available for sale		34,214
Loans		247,737
FHLB and other equity interests		1,789
Premises and equipment		4,328
Bank owned life insurance		3,955
Mortgage servicing rights		83
Core deposit intangible		4,834
Accrued interest receivable and other assets		8,093
Total assets acquired		360,028
Demand deposits		248,812
Time deposits		83,214
Accrued interest payable and other liabilities		2,676
Total liabilities assumed		334,702
Total identifiable net assets		25,326
Goodwill	$	16,248

Schedule of Pro Forma Information of Acquisition

The following table presents pro forma information as if the acquisition had occurred at the beginning of 2012:

	2013		2012
Net interest income	$	68,723	$	65,786
Net income		17,589		20,125
Basic earnings per share		1.23		1.41
Diluted earnings per share		1.23		1.41

XML

Loans - Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Residential real estate	$ 471,298	$ 347,904
Consumer	63,491	58,668
Credit cards	5,065	4,800
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential real estate	468,759	345,094
Consumer	62,379	58,441
Credit cards	5,041	4,787
Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Residential real estate	2,539	2,810
Consumer	1,112	227
Credit cards	$ 24	$ 13

XML

Capital Requirements and Restrictions on Retained Earnings - Summary of Actual and Required Capital Amounts and Ratios (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to Risk Weighted Assets, Actual Amount	$ 183,984	$ 152,968
Total Capital to Risk Weighted Assets, Actual Ratio	13.72%	15.28%
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes Amount	107,316	80,073
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	8.00%	8.00%
Tier 1 (Core) Capital to Risk Weighted Assets, Actual Amount	167,773	140,426
Tier 1 (Core) Capital to Risk Weighted Assets, Actual Ratio	12.51%	14.03%
Tier 1 (Core) Capital to Risk Weighted Assets, For Capital Adequacy Purposes Amount	53,658	40,036
Tier 1 (Core) Capital to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 (Core) Capital to Average Assets, Actual Amount	167,773	140,426
Tier 1 (Core) Capital to Average Assets, Actual Ratio	7.96%	8.06%
Tier 1 (Core) Capital to Average Assets, For Capital Adequacy Purposes, Amount	84,332	69,726
Tier 1 (Core) Capital to Average Assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital to Risk Weighted Assets, Actual Amount	166,440	131,788
Total Capital to Risk Weighted Assets, Actual Ratio	12.57%	13.46%
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes Amount	105,912	78,324
Total Capital to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	8.00%	8.00%
Total Capital to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	132,390	97,905
Total Capital to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	10.00%	10.00%
Tier 1 (Core) Capital to Risk Weighted Assets, Actual Amount	151,585	119,534
Tier 1 (Core) Capital to Risk Weighted Assets, Actual Ratio	11.45%	12.21%
Tier 1 (Core) Capital to Risk Weighted Assets, For Capital Adequacy Purposes Amount	52,956	39,162
Tier 1 (Core) Capital to Risk Weighted Assets, For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 (Core) Capital to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	79,434	58,743
Tier 1 (Core) Capital to Risk Weighted Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.00%	6.00%
Tier 1 (Core) Capital to Average Assets, Actual Amount	151,585	119,534
Tier 1 (Core) Capital to Average Assets, Actual Ratio	7.39%	6.99%
Tier 1 (Core) Capital to Average Assets, For Capital Adequacy Purposes, Amount	82,078	68,409
Tier 1 (Core) Capital to Average Assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier 1 (Core) Capital to Average Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 102,597	$ 85,512
Tier 1 (Core) Capital to Average Assets, To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	5.00%	5.00%

XML

Fair Value - Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Impaired Loans - Commercial Mortgages [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 3,000	$ 8,422
Impaired Loans - Commercial, Industrial, and Agricultural [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	3,274
Impaired Loans - Commercial, Industrial, and Agricultural [Member] | Income Approach Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	432	1,973
Impaired Loans - Residential Real Estate [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value		$ 402
Minimum [Member] | Impaired Loans - Commercial Mortgages [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Sales comparison approach	17.00%	1.00%
Minimum [Member] | Impaired Loans - Commercial, Industrial, and Agricultural [Member] | Income Approach Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Income approach		24.00%
Minimum [Member] | Impaired Loans - Residential Real Estate [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Sales comparison approach		10.00%
Maximum [Member] | Impaired Loans - Commercial Mortgages [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Sales comparison approach	61.00%	39.00%
Maximum [Member] | Impaired Loans - Commercial, Industrial, and Agricultural [Member] | Income Approach Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Income approach		38.00%
Maximum [Member] | Impaired Loans - Residential Real Estate [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Sales comparison approach		15.00%
Weighted Average [Member] | Impaired Loans - Commercial Mortgages [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Sales comparison approach	22.00%	(19.00%)
Weighted Average [Member] | Impaired Loans - Commercial, Industrial, and Agricultural [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Sales comparison approach	9.00%
Weighted Average [Member] | Impaired Loans - Commercial, Industrial, and Agricultural [Member] | Income Approach Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Income approach	2.00%	(27.00%)
Weighted Average [Member] | Impaired Loans - Residential Real Estate [Member] | Sales Comparison Valuation Technique [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Sales comparison approach		(11.00%)

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Other Comprehensive Income - Summary of Change in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Equity [Abstract]
Unrealized gains (losses) on securities available for sale, Beginning Balance	$ 16,039	$ 12,478	$ (1,963)
Unrealized gains (losses) on securities available for sale, Increase (Decrease)	(23,675)	3,561	14,441
Unrealized gains (losses) on securities available for sale, Ending Balance	(7,636)	16,039	12,478
Unrealized gain (loss) on postretirement benefits plan, Beginning Balance	(981)	(632)	(147)
Unrealized gain (loss) on postretirement benefits plan, Increase (Decrease)	(103)	(349)	(485)
Unrealized gain (loss) on postretirement benefits plan, Ending Balance	(1,084)	(981)	(632)
Unrealized gain (loss) on interest rate swap, Beginning Balance	(1,134)	(1,085)	(563)
Unrealized gain (loss) on interest rate swap, Increase (Decrease)	409	(49)	(522)
Unrealized gain (loss) on interest rate swap, Ending Balance	(725)	(1,134)	(1,085)
Total, Beginning Balance	13,924	10,761	(2,673)
Total, Increase (Decrease)	(23,369)	3,163	13,434
Total, Ending Balance	$ (9,445)	$ 13,924	$ 10,761

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Loans - Impaired Financing Receivables with Related and not Related Allowances (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Financing Receivable, Impaired [Line Items]
Average Recorded Investment, Total	$ 22,757	$ 24,964	$ 18,392
Interest Income Recognized, Total	17	20	26
Cash Basis Interest Recognized, Total	17	20	26
Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment, Related Allowance	1,989	3,083	3,711
Interest Income Recognized, Related Allowance	7	4	3
Cash Basis Interest Recognized, Related Allowance	7	4	3
Average Recorded Investment, No Related Allowance	2,124	3,217	2,050
Interest Income Recognized, No Related Allowance	0	0	0
Cash Basis Interest Recognized, No Related Allowance	0	0	0
Commercial Mortgages [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment, Related Allowance	6,572	5,504	6,412
Interest Income Recognized, Related Allowance	3	3	19
Cash Basis Interest Recognized, Related Allowance	3	3	19
Average Recorded Investment, No Related Allowance	11,885	12,723	6,040
Interest Income Recognized, No Related Allowance	0	0	0
Cash Basis Interest Recognized, No Related Allowance	0	0	0
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment, Related Allowance	101	334	179
Interest Income Recognized, Related Allowance	7	13	4
Cash Basis Interest Recognized, Related Allowance	7	13	4
Average Recorded Investment, No Related Allowance	86	103	0
Interest Income Recognized, No Related Allowance	0	0	0
Cash Basis Interest Recognized, No Related Allowance	$ 0	$ 0	$ 0

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Foreclosed Assets - Summary of Expenses Related to Foreclosed Real Estate (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Banking And Thrift [Abstract]
Net loss (gain) on sale	$ (252)	$ (158)	$ (101)
Operating expenses, net of rental income	81	176	24
Total	$ (171)	$ 18	$ (77)

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Business Combination - Schedule of Pro Forma Information of Acquisition (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Business Combinations [Abstract]
Net interest income	$ 68,723	$ 65,786
Net income	$ 17,589	$ 20,125
Basic earnings per share	$ 1.23	$ 1.41
Diluted earnings per share	$ 1.23	$ 1.41

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Deferred Compensation Plans - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013
Postemployment Benefits [Abstract]
Maximum period for deferred compensation plan payment after individual's termination of service	10 years

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Quarterly Financial Data (Unaudited) - Unaudited Quarterly Results of Operations (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Information Disclosure [Abstract]
Total interest and dividend income	$ 20,489	$ 17,465	$ 16,758	$ 16,704	$ 16,965	$ 17,133	$ 17,207	$ 16,824	$ 71,416	$ 68,129	$ 65,712
Net interest income	17,279	14,648	13,826	13,451	13,588	13,670	13,274	12,677	59,204	53,209	48,133
Provision for loan losses	1,247	846	3,115	930	2,343	1,188	1,746	1,104	6,138	6,381	4,937
Non-interest income	3,676	3,248	3,771	3,071	2,803	3,079	3,264	3,518	13,766	12,664	10,719
Non-interest expense	12,995	10,343	10,793	9,682	8,890	9,208	8,833	9,014	43,813	35,945	33,282
Net income	$ 4,728	$ 4,703	$ 2,951	$ 4,297	$ 3,890	$ 4,563	$ 4,336	$ 4,347	$ 16,679	$ 17,136	$ 15,104
Net income per share, basic	$ 0.33	$ 0.38	$ 0.24	$ 0.34	$ 0.31	$ 0.37	$ 0.35	$ 0.35	$ 1.29	$ 1.38	$ 1.23
Net income per share, diluted	$ 0.33	$ 0.38	$ 0.24	$ 0.34	$ 0.31	$ 0.37	$ 0.35	$ 0.35	$ 1.29	$ 1.38	$ 1.23

XML

Loans - Restructured in Troubled Debt (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Loans	Dec. 31, 2012 Loans
Financing Receivable, Modifications [Line Items]
Number of Loans	12	10
Loans Balance	$ 12,136	$ 11,621
Specific Reserve	1,455	1,099
Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	2	2
Loans Balance	1,263	1,420
Specific Reserve	0	0
Commercial Mortgages [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	10	8
Loans Balance	10,873	10,201
Specific Reserve	1,455	1,099
Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Loans Balance	0	0
Specific Reserve	0	0
Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Loans Balance	0	0
Specific Reserve	0	0
Credit Cards [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Loans Balance	0	0
Specific Reserve	$ 0	$ 0

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Premises and Equipment - Summary of Minimum Annual Rental Commitments Under Operating Lease (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Property Plant And Equipment [Abstract]
2014	$ 630
2015	617
2016	592
2017	426
2018	207
Thereafter	1,169
Total	$ 3,641

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Secondary Market Mortgage Activities - Summary of Secondary Market Mortgage Activities (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Mortgage Banking [Abstract]
Loans originated for resale, net of principal pay downs	$ 19,883	$ 32,626	$ 19,927
Proceeds from sales of loans held for sale	22,252	32,512	23,324
Net gains on sales of loans held for sale	808	927	638
Loan servicing fees	$ 375	$ 340	$ 349

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Premises and Equipment - Summary of Minimum Annual Rental Commitments Under Sale Lease Back (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Property Plant And Equipment [Abstract]
2014	$ 112
2015	112
2016	112
2017	112
2018	112
Thereafter	893
Total	$ 1,453

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Loans - Loans by Class Modified as Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Loans	Dec. 31, 2012 Loans
Financing Receivable, Modifications [Line Items]
Number of Loans	12	10
Trouble Debt Restructuring [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	3	7
Pre-Modification Outstanding Recorded Investment	$ 3,747	$ 4,172
Post-Modification Outstanding Recorded Investment	3,681	4,172
Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	2	2
Commercial, Industrial, and Agricultural [Member] | Trouble Debt Restructuring [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	2
Pre-Modification Outstanding Recorded Investment	0	1,455
Post-Modification Outstanding Recorded Investment	0	1,455
Commercial Mortgages [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	10	8
Commercial Mortgages [Member] | Trouble Debt Restructuring [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	3	5
Pre-Modification Outstanding Recorded Investment	3,747	2,717
Post-Modification Outstanding Recorded Investment	3,681	2,717
Residential Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Residential Real Estate [Member] | Trouble Debt Restructuring [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Pre-Modification Outstanding Recorded Investment	0	0
Post-Modification Outstanding Recorded Investment	0	0
Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Consumer [Member] | Trouble Debt Restructuring [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Pre-Modification Outstanding Recorded Investment	0	0
Post-Modification Outstanding Recorded Investment	0	0
Credit Cards [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Credit Cards [Member] | Trouble Debt Restructuring [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans	0	0
Pre-Modification Outstanding Recorded Investment	0	0
Post-Modification Outstanding Recorded Investment	$ 0	$ 0

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Loans - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Ending allowance balance attributable to loans:
Allowance for loan losses, Individually evaluated for impairment	$ 427	$ 753
Allowance for loan losses, Collectively evaluated for impairment	14,352	12,208
Acquired with deteriorated credit quality	0
Allowance for loan losses, Modified in a troubled debt restructuring	1,455	1,099
Total ending allowance balance	16,234	14,060	12,615	10,820
Loans:
Loans individually evaluated for impairment	6,172	13,899
Loans collectively evaluated for impairment	1,278,726	905,705
Acquired with deteriorated credit quality	2,225
Loans modified in a troubled debt restructuring	12,136	11,621
Total ending loans balance	1,299,259	931,225
Commercial, Industrial, and Agricultural [Member]
Ending allowance balance attributable to loans:
Allowance for loan losses, Individually evaluated for impairment	372	541
Allowance for loan losses, Collectively evaluated for impairment	5,907	4,399
Acquired with deteriorated credit quality	0
Allowance for loan losses, Modified in a troubled debt restructuring	0	0
Total ending allowance balance	6,279	4,940	4,511	3,517
Loans:
Loans individually evaluated for impairment	4,923	2,623
Loans collectively evaluated for impairment	285,518	253,048
Acquired with deteriorated credit quality	0
Loans modified in a troubled debt restructuring	1,263	1,420
Total ending loans balance	291,704	257,091
Commercial Mortgages [Member]
Ending allowance balance attributable to loans:
Allowance for loan losses, Individually evaluated for impairment	55	131
Allowance for loan losses, Collectively evaluated for impairment	3,959	3,467
Acquired with deteriorated credit quality	0
Allowance for loan losses, Modified in a troubled debt restructuring	1,455	1,099
Total ending allowance balance	5,469	4,697	4,470	3,511
Loans:
Loans individually evaluated for impairment	1,249	10,683
Loans collectively evaluated for impairment	452,945	240,907
Acquired with deteriorated credit quality	2,225
Loans modified in a troubled debt restructuring	10,873	10,201
Total ending loans balance	467,292	261,791
Residential Real Estate [Member]
Ending allowance balance attributable to loans:
Allowance for loan losses, Individually evaluated for impairment	0	81
Allowance for loan losses, Collectively evaluated for impairment	2,880	2,385
Acquired with deteriorated credit quality	0
Allowance for loan losses, Modified in a troubled debt restructuring	0	0
Total ending allowance balance	2,880	2,466	1,991	1,916
Loans:
Loans individually evaluated for impairment	0	593
Loans collectively evaluated for impairment	471,298	347,311
Acquired with deteriorated credit quality	0
Loans modified in a troubled debt restructuring	0	0
Total ending loans balance	471,298	347,904
Consumer [Member]
Ending allowance balance attributable to loans:
Allowance for loan losses, Individually evaluated for impairment	0	0
Allowance for loan losses, Collectively evaluated for impairment	1,333	1,699
Acquired with deteriorated credit quality	0
Allowance for loan losses, Modified in a troubled debt restructuring	0	0
Total ending allowance balance	1,333	1,699	1,404	1,561
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	63,491	58,668
Acquired with deteriorated credit quality	0
Loans modified in a troubled debt restructuring	0	0
Total ending loans balance	63,491	58,668
Credit Cards [Member]
Ending allowance balance attributable to loans:
Allowance for loan losses, Individually evaluated for impairment	0	0
Allowance for loan losses, Collectively evaluated for impairment	66	83
Acquired with deteriorated credit quality	0
Allowance for loan losses, Modified in a troubled debt restructuring	0	0
Total ending allowance balance	66	83	71	96
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	5,065	4,800
Acquired with deteriorated credit quality	0
Loans modified in a troubled debt restructuring	0	0
Total ending loans balance	5,065	4,800
Overdrafts [Member]
Ending allowance balance attributable to loans:
Allowance for loan losses, Individually evaluated for impairment	0	0
Allowance for loan losses, Collectively evaluated for impairment	207	175
Acquired with deteriorated credit quality	0
Allowance for loan losses, Modified in a troubled debt restructuring	0	0
Total ending allowance balance	207	175	168	219
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	409	971
Acquired with deteriorated credit quality	0
Loans modified in a troubled debt restructuring	0	0
Total ending loans balance	$ 409	$ 971

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Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

17.  Related Party Transactions

In the ordinary course of business, the Bank has transactions, including loans, with its officers, directors, and their affiliated companies. The aggregate of such loans totaled $2,238 on December 31, 2013 compared to $1,144 at December 31, 2012. During 2013, $1,432 new loans were made, $125 was added due to a change in the composition of related parties, and repayments totaled $463.

Deposits from principal officers, directors, and their affiliates were $48,249 and $25,293 at December 31, 2013 and 2012, respectively.

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Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2013 and 2012:

				Fair Value Measurements at December 31, 2013 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Treasury	$	0		$	0	$	0		$	0
U.S. Government sponsored entities		181,625			0		181,625			0
States and political subdivisions		177,943			0		177,943			0
Residential and multi-family mortgage		242,607			0		242,607			0
Commercial mortgage		374			0		374			0
Corporate notes and bonds		14,075			0		14,075			0
Pooled trust preferred		661			0		0			661
Pooled SBA		67,721			0		67,721			0
Other securities		985			985		0			0
Total Securities Available For Sale	$	685,991		$	985	$	684,345		$	661
Trading Securities:
Corporate equity securities	$	2,705		$	2,705	$	0		$	0
Certificates of deposit		253			253		0			0
International mutual funds		259			259		0			0
Large cap growth mutual funds		197			197		0			0
Money market mutual funds		124			124		0			0
Large cap value mutual funds		129			129		0			0
Corporate notes and bonds		152			0		152			0
Real estate investment trust mutual funds		39			39		0			0
U.S. Government sponsored entities		52			0		52			0
Small cap mutual funds		83			83		0			0
Mid cap mutual funds		84			84		0			0
Commodities mutual funds		50			50		0			0
Total Trading Securities	$	4,127		$	3,923	$	204		$	0
Liabilities,
Interest rate swaps	$	(1,116	)	$	0	$	(1,116	)	$	0

				Fair Value Measurements at December 31, 2012 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Treasury	$	4,036		$	0	$	4,036		$	0
U.S. Government sponsored entities		163,781			0		163,781			0
States and political subdivisions		181,279			0		181,279			0
Residential and multi-family mortgage		316,822			0		316,822			0
Commercial mortgage		1,304			0		1,304			0
Corporate notes and bonds		15,024			0		13,044			1,980
Pooled trust preferred		600			0		0			600
Pooled SBA		52,927			52,631		296			0
Other securities		1,538			1,538		0			0
Total Securities Available For Sale	$	737,311		$	54,169	$	680,562		$	2,580
Trading Securities:
Corporate equity securities	$	3,117		$	3,117	$	0		$	0
Certificates of deposit		408			408		0			0
International mutual funds		287			287		0			0
Large cap growth mutual funds		157			157		0			0
Money market mutual funds		110			110		0			0
Large cap value mutual funds		104			104		0			0
Corporate notes and bonds		101			0		101			0
Real estate investment trust mutual funds		65			65		0			0
U.S. Government sponsored entities		58			0		58			0
Small cap mutual funds		26			26		0			0
Mid cap mutual funds		26			26		0			0
Total Trading Securities	$	4,459		$	4,300	$	159		$	0
Liabilities,
Interest rate swaps	$	(1,745	)	$	0	$	(1,745	)	$	0

Securities Available for Sale Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2013:

	Corporate notes and bonds			Pooled trust preferred
Balance, January 1, 2013	$	1,980		$	600
Total gains or (losses):
Included in other comprehensive income (loss)		(29	)		61
Included in realized gains on available-for-sale securities		58			0
Sale of available-for-sale securities		(2,009	)		0
Balance, December 31, 2013	$	0		$	661

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2012:

	Corporate notes and bonds			Pooled trust preferred
Balance, January 1, 2012	$	2,060		$	340
Total gains or (losses):
Included in other comprehensive income (unrealized)		(80	)		260
Balance, December 31, 2012	$	1,980		$	600

Quantitative Information about Level 3 Fair Value Measurements

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2013:

	Fair value		Valuation Technique	Unobservable Inputs	Input Utilized
Pooled trust preferred	$	661	Discounted cash flow	Collateral default rate Yield Prepayment speed	2% in 2014; 1.5% in 2015; 1.0% in 2016; 0.5% in 2017 and thereafter 15% 2.0% constant prepayment rate in 2014 and thereafter

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2012:

	Fair value	Valuation Technique	Unobservable Inputs	Input Utilized
Corporate notes and bonds	$1,980	Discounted cash flow	Constant prepayment rate Probability of default Discount rate	0% 0% 9.6%
Pooled trust preferred	$600	Discounted cash flow	Collateral default rate Discount rate Recovery probability	2% annually for 2 years; 0.36% thereafter 13% 10%, lagged 2 years

Sale Securities Reported as Level 1 Securities as of Beginning of Period were Transferred to Level 2 Category

During the year ended December 31, 2012, the following available for sale securities reported as Level 1 securities as of the beginning of the year were transferred to the Level 2 category:

	2012
U.S. Government sponsored entities	$	2,000
States and political subdivisions		4,655
Residential and multi-family mortgage		8,577
Total	$	15,232

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are as follows at December 31, 2013 and 2012:

			Fair Value Measurements at December 31, 2013 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	3,000		0		0	$	3,000
Commercial, industrial, and agricultural		3,706		0		0		3,706
			Fair Value Measurements at December 31, 2012 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	8,422	$	0	$	0	$	8,422
Commercial, industrial, and agricultural		1,973		0		0		1,973
Residential real estate		402		0		0		402

Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis

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 December 31, 2013:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	3,000	Sales comparison approach	Adjustment for differences between the comparable sales	17%—61% (22%)
Impaired loans – commercial, industrial, and agricultural	$	3,274	Sales comparison approach	Adjustment for differences between the comparable sales	9%
Impaired loans – commercial, industrial, and agricultural	$	432	Income approach	Adjustment for differences in net operating income	2%

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 December 31, 2012:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	8,422	Sales comparison approach	Adjustment for differences between the comparable sales	1%—39% (19%)
Impaired loans – commercial, industrial, and agricultural	$	1,973	Income approach	Adjusting for differences in net operating income	24%—38% (27%)
Impaired loans – residential real estate	$	402	Sales comparison approach	Adjustment for differences between the comparable sales	10%—15% (11%)

Carrying Amount and Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at December 31, 2013:

	Carrying Amount			Fair Value Measurement Using:									Total Fair Value
				Level 1			Level 2			Level 3
ASSETS
Cash and cash equivalents	$	29,633		$	29,633		$	0		$	0		$	29,633
Interest bearing time deposits with other banks		275			0			274			0			274
Securities available for sale		685,991			985			684,345			661			685,991
Trading securities		4,127			3,923			204			0			4,127
Loans held for sale		487			0			507			0			507
Net loans		1,279,129			0			0			1,276,622			1,276,622
FHLB and other equity interests		7,533			n/a			n/a			n/a			n/a
Accrued interest receivable		8,032			368			3,302			4,362			8,032
LIABILITIES
Deposits	$	(1,835,314	)	$	(1,569,552	)	$	(265,237	)	$	0		$	(1,834,789	)
FHLB and other borrowings		(87,950	)		0			(87,833	)		0			(87,833	)
Subordinated debentures		(20,620	)		0			(11,178	)		0			(11,178	)
Interest rate swaps		(1,116	)		0			(1,116	)		0			(1,116	)
Accrued interest payable		(868	)		(200	)		(653	)		(15	)		(868	)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2012:

	Carrying Amount			Fair Value Measurement Using:									Total Fair Value
				Level 1			Level 2			Level 3
ASSETS
Cash and cash equivalents	$	31,881		$	31,881		$	0		$	0		$	31,881
Interest bearing time deposits with other banks		225			0			281			0			281
Securities available for sale		737,311			54,169			680,562			2,580			737,311
Trading securities		4,459			4,300			159			0			4,459
Loans held for sale		2,398			0			2,460			0			2,460
Net loans		913,764			0			0			946,238			946,238
FHLB and other equity interests		6,684			n/a			n/a			n/a			n/a
Accrued interest receivable		6,863			278			3,498			3,087			6,863
LIABILITIES
Deposits	$	(1,485,003	)	$	(1,272,060	)	$	(215,485	)	$	0		$	(1,487,545	)
FHLB and other borrowings		(97,806	)		0			(105,850	)		0			(105,850	)
Subordinated debentures		(20,620	)		0			(10,682	)		0			(10,682	)
Interest rate swaps		(1,745	)		0			(1,745	)		0			(1,745	)
Accrued interest payable		(1,022	)		(301	)		(707	)		(14	)		(1,022	)

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Borrowings (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Schedule of Remaining Borrowing Capacity with FHLB

Borrowings from the FHLB at December 31, 2013 and 2012 are as follows:

Interest Rate	Maturity		2013		2012
(a)		09/17/15	$	20,000	$	20,000
(b)		06/01/17		10,000		10,000
(c)		08/07/17		5,000		5,000
(d)		08/07/17		5,000		5,000
(e)		08/07/17		10,000		10,000
(f)		10/10/17		10,000		10,000
(g)		07/07/23		700		700
(h)		09/05/23		2,280		2,388
(i)		06/11/24		535		557
(j)		05/24/26		302		321
(k)		10/14/26		311		330
(l)		02/11/33		872		0
			$	65,000	$	64,296

(a), (g) – Fixed rate borrowings at interest rates of 2.09% and 4.72%, respectively.

(b) – Interest rate was fixed at 4.60% until June 2009, since which time FHLB has had the option to convert to floating interest rate based on the 3 month LIBOR + 0.16%. The interest rate was 4.60% at December 31, 2013 and 2012.

(c) – Interest rate was fixed at 4.02% until February 2008, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.02% at December 31, 2013 and 2012.

(d) – Interest rate was fixed at 4.10% until August 2008, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.10% at December 31, 2013 and 2012.

(e) – Interest rate is fixed at 4.47% until August 2010, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.47% at December 31, 2013 and 2012.

(f) – Interest rate was fixed at 3.97% until October 2009, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.10%. The interest rate was 3.97% at December 31, 2013 and 2012.

(h) – Fixed rate borrowing at an interest rate of 4.31%, with monthly principal and interest payments and a balloon payment due at maturity.

(i) – Fixed rate borrowing at an interest rate of 5.24%, with monthly principal and interest payments and a balloon payment due at maturity.

(j) – Fixed rate borrowing at an interest rate of 3.35%, with monthly principal and interest payments.

(k) – Fixed rate borrowing at an interest rate of 4.00%, with monthly principal and interest payments.

(l) – Fixed rate borrowing at an interest rate of 3.23%, with monthly principal and interest payments.

Maturity Schedule of All Borrowed Funds

The following is a schedule of maturities of all borrowed funds as of December 31, 2013:

2014	$	13,159
2015		20,218
2016		227
2017		50,237
2018		246
Thereafter		24,483
Total borrowed funds	$	108,570

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Loans - Aging of Recorded Investment in Past Due Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 6,019	$ 4,039
60-89 Days Past Due	2,447	4,207
Greater Than 90 Days Past Due	11,766	14,587
Total Past Due	20,232	22,833
Loans Not Past Due	1,279,027	908,392
Total	1,299,259	931,225
Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	211	724
60-89 Days Past Due	542	157
Greater Than 90 Days Past Due	855	2,968
Total Past Due	1,608	3,849
Loans Not Past Due	290,096	253,242
Total	291,704	257,091
Commercial Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	1,258	1,162
60-89 Days Past Due	713	3,197
Greater Than 90 Days Past Due	7,236	8,679
Total Past Due	9,207	13,038
Loans Not Past Due	458,085	248,753
Total	467,292	261,791
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	4,216	1,390
60-89 Days Past Due	114	641
Greater Than 90 Days Past Due	2,539	2,700
Total Past Due	6,869	4,731
Loans Not Past Due	464,429	343,173
Total	471,298	347,904
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	334	724
60-89 Days Past Due	1,049	203
Greater Than 90 Days Past Due	1,112	227
Total Past Due	2,495	1,154
Loans Not Past Due	60,996	57,514
Total	63,491	58,668
Credit Cards [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	0	39
60-89 Days Past Due	29	9
Greater Than 90 Days Past Due	24	13
Total Past Due	53	61
Loans Not Past Due	5,012	4,739
Total	5,065	4,800
Overdrafts [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater Than 90 Days Past Due	0	0
Total Past Due	0	0
Loans Not Past Due	409	971
Total	$ 409	$ 971

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Borrowings - Schedule of Remaining Borrowing Capacity with FHLB (Parenthetical) (Detail)		12 Months Ended			12 Months Ended			12 Months Ended			12 Months Ended			12 Months Ended
	Dec. 31, 2013 Interest Rate 2.09% [Member]	Dec. 31, 2013 Interest Rate 4.60% [Member]	Dec. 31, 2012 Interest Rate 4.60% [Member]	Jun. 30, 2009 Interest Rate 4.60% [Member]	Dec. 31, 2013 Interest Rate 4.02% [Member]	Dec. 31, 2012 Interest Rate 4.02% [Member]	Feb. 29, 2008 Interest Rate 4.02% [Member]	Dec. 31, 2013 Interest Rate 4.10% [Member]	Dec. 31, 2012 Interest Rate 4.10% [Member]	Aug. 31, 2008 Interest Rate 4.10% [Member]	Dec. 31, 2013 Interest Rate 4.47% [Member]	Dec. 31, 2012 Interest Rate 4.47% [Member]	Aug. 31, 2010 Interest Rate 4.47% [Member]	Dec. 31, 2013 Interest Rate 3.97% [Member]	Dec. 31, 2012 Interest Rate 3.97% [Member]	Oct. 31, 2009 Interest Rate 3.97% [Member]	Dec. 31, 2012 Interest Rate 4.72% [Member]	Dec. 31, 2013 Interest Rate 4.31% [Member]	Dec. 31, 2013 Interest Rate 5.24% [Member]	Dec. 31, 2013 Interest Rate 3.35% [Member]	Dec. 31, 2013 Interest Rate 4.00% [Member]	Dec. 31, 2013 Interest Rate 3.23% [Member]
Borrowings Under Repurchase Agreements [Line items]
Fixed rate on borrowings	2.09%	4.60%	4.60%	4.60%	4.02%	4.02%	4.02%	4.10%	4.10%	4.10%	4.47%	4.47%	4.47%	3.97%	3.97%	3.97%	4.72%	4.31%	5.24%	3.35%	4.00%	3.23%
FHLB advances, floating rate description		3 month LIBOR + 0.16%			3 month LIBOR + 0.11%			3 month LIBOR + 0.11%			3 month LIBOR + 0.11%			3 month LIBOR + 0.10%
FHLB advances, basis spread on floating rate		0.16%			0.11%			0.11%			0.11%			0.10%

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Secondary Market Mortgage Activities (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Summary of Secondary Market Mortgage Activities

The following summarizes secondary market mortgage activities for the years ended December 31, 2013, 2012, and 2011:

	2013		2012		2011
Loans originated for resale, net of principal pay downs	$	19,883	$	32,626	$	19,927
Proceeds from sales of loans held for sale		22,252		32,512		23,324
Net gains on sales of loans held for sale		808		927		638
Loan servicing fees		375		340		349

Summary of Activity for Capitalized Mortgage Servicing Rights

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Balance, beginning of year	$	714		$	906		$	909
Additions		350			85			249
Servicing rights acquired		83			0			0
Amortization		(242	)		(277	)		(252	)
Balance, end of year	$	905		$	714		$	906

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Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Components of Other Comprehensive Income and Related Tax Effects

Other comprehensive income components and related tax effects were as follows for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Unrealized holding gains (losses) on available for sale securities	$	(36,130	)	$	6,597		$	22,457
Less reclassification adjustment for gains recognized in earnings		(355	)		(1,379	)		(614	)
Net unrealized gains		(36,485	)		5,218			21,843
Tax effect		12,770			(1,826	)		(7,642	)
Net-of-tax amount		(23,715	)		3,392			14,201
Unrealized holding gains (losses) on available for sale securities for which a portion of an other-than-temporary impairment has been recognized in earnings		61			260			(28	)
Less reclassification adjustment for impairment loss recognized in earnings		0			0			398
Net unrealized gains		61			260			370
Tax effect		(21	)		(91	)		(130	)
Net-of-tax amount		40			169			240
Actuarial loss on postemployment health care plan		(219	)		(578	)		(757	)
Net amortization of transition obligation and actuarial gain		61			41			11
Net unrealized loss on postemployment health care plan		(158	)		(537	)		(746	)
Tax effect		55			188			261
Net-of-tax amount		(103	)		(349	)		(485	)
Unrealized loss on interest rate swap		229			(465	)		(1,205	)
Less reclassification adjustment for losses recognized in earnings		400			390			402
Net unrealized gain (loss)		629			(75	)		(803	)
Tax effect		(220	)		26			281
Net-of-tax amount		409			(49	)		(522	)
Other comprehensive income	$	(23,369	)	$	3,163		$	13,434

Summary of Change in Accumulated Other Comprehensive Income (Loss)

The following is a summary of the change in the accumulated other comprehensive income (loss) balance, net of tax, for the years ended December 31, 2013, 2012, and 2011:

	Balance 1/1/11			Increase (Decrease)			Balance 12/31/11			Increase (Decrease)			Balance 12/31/12			Increase (Decrease)			Balance 12/31/13
Unrealized gains (losses) on securities available for sale	$	(1,963	)	$	14,441		$	12,478		$	3,561		$	16,039		$	(23,675	)	$	(7,636	)
Unrealized gain (loss) on postretirement benefits plan		(147	)		(485	)		(632	)		(349	)		(981	)		(103	)		(1,084	)
Unrealized loss on interest rate swap		(563	)		(522	)		(1,085	)		(49	)		(1,134	)		409			(725	)
Total	$	(2,673	)	$	13,434		$	10,761		$	3,163		$	13,924		$	(23,369	)	$	(9,445	)

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Securities - Information Pertaining to Security Sales (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Amortized Cost And Fair Value Debt Securities [Abstract]
Proceeds	$ 35,633	$ 125,579	$ 69,740
Gross Gains	849	1,809	878
Gross Losses	$ 494	$ 430	$ 264

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Stock-Based Compensation - Summary of the Status of the Stock Options (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding, Stock Option, Beginning balance	75,500
Stock option, Exercised	(40,000)	(31,875)	(28,750)
Outstanding, Stock Option, Ending balance	35,500	75,500
Options vested and exercisable	35,500
Fair value of options granted during 2013
Number of authorized stock-based awards available for grant	393,441
Outstanding Weighted-average Exercise Price, Beginning balance	$ 16.79
Weighted-average Exercise Price, Exercised	$ 17.45
Outstanding Weighted-average Exercise Price, Ending balance	$ 16.04	$ 16.79

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Securities - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Securities	Dec. 31, 2012 Securities	Dec. 31, 2011
Amortized Cost And Fair Value Debt Securities [Abstract]
Number of securities holdings	0	0
Shareholders' equity percentage	10.00%	10.00%
Securities	$ 353,102	$ 264,813
Tax provision related to net realized gains	124	483	215
Proceeds from sale of trading securities	5,811	3,386	343
Net gain from proceeds of sale of trading securities	$ 579	$ 298	$ 30

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of the Status of the Stock Options

A summary of the status of the stock options is presented below:

	Stock Options			Weighted-average Exercise Price
Outstanding at January 1, 2013		75,500		$	16.79
Exercised		(40,000	)		17.45
Outstanding at December 31, 2013		35,500		$	16.04
Options vested and exercisable at December 31, 2013		35,500
Fair value of options granted during 2013		N/A
Number of authorized stock-based awards available for grant		393,441

Summary of Options Outstanding and Exercisable

Options outstanding and exercisable at December 31, 2013 are as follows:

Exercise Price	Number		Remaining Contractual Life
$16.04		35,500		1.0 years

Additional Information Related to the Stock Option Plan

Additional information related to the stock option plan follows:

	2013		2012	2011
Intrinsic value of options exercised	$	99	$114	$	151
Cash received from option exercises		698	424		259

Summary of Changes in Nonvested Restricted Stock Awards

A summary of changes in nonvested restricted stock awards follows:

	Shares			Weighted-average Grant Date Fair Value
Nonvested at January 1, 2013		49,574			$15.37
Granted		31,500			17.10
Forfeited		(525	)		16.44
Vested		(18,473	)		15.33
Nonvested at December 31, 2013		62,076			$16.25

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1.  Summary of Significant Accounting Policies

Unless otherwise indicated, dollar amounts are in thousands, except per share data.

Business and Organization

CNB Financial Corporation (the “Corporation”) is headquartered in Clearfield, Pennsylvania, and provides a full range of banking and related services through its wholly owned subsidiary, CNB Bank (the “Bank”). In addition, the Bank provides trust and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans as well as a full range of wealth management services. The Bank serves individual and corporate customers and is subject to competition from other financial institutions and intermediaries with respect to these services. In addition to the Bank, the Corporation also operates a consumer discount loan and finance business through its wholly owned subsidiary, Holiday Financial Services Corporation (“Holiday”). The Corporation and these and its other subsidiaries are subject to examination by federal and state regulators. The Corporation’s market area is primarily concentrated in the central and northwest regions of the Commonwealth of Pennsylvania and in the central region of the state of Ohio.

Basis of Financial Presentation

The financial statements are consolidated to include the accounts of the Corporation and the Bank, CNB Securities Corporation, Holiday, County Reinsurance Company, and CNB Insurance Agency. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Use of Estimates

To prepare financial statements in conformity with accounting principles generally accepted in the U.S., management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, carrying value of goodwill, mortgage servicing rights, fair value of assets acquired and liabilities assumed in connection with business combinations and fair values of securities and other financial instruments are particularly subject to change.

Operating Segments

While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Corporation-wide basis, and operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

Interest Bearing Time Deposits with Other Banks

Interest-bearing deposits in other financial institutions mature within one year and are carried at cost.

Securities

When purchased, securities are classified as held to maturity, trading or available for sale. Debt securities are classified as held to maturity when the Corporation has the positive intent and ability to hold the securities to maturity. Held to maturity securities are carried at amortized cost. Debt or equity securities are classified as trading when purchased principally for the purpose of selling them in the near term, or when the fair value option has been elected. Trading securities are recorded at fair value with changes in fair value included in earnings in non-interest income. Available for sale securities are those securities not classified as held to maturity or trading and are carried at their fair value. Unrealized gains and losses, net of deferred tax, on securities classified as available for sale are recorded as other comprehensive income. Management has not classified any debt securities as held to maturity.

The amortized cost of debt securities classified as held to maturity or available for sale is adjusted for the amortization of premiums and the accretion of discounts over the period through contractual maturity or, in the case of mortgage-backed securities and collateralized mortgage obligations, over the estimated life of the security. Such amortization is included in interest income from securities. Gains and losses on securities sold are recorded on the trade date and based on the specific identification method.

Declines in the fair value of debt securities below their cost that are other than temporary and attributable to credit losses are reflected in earnings. Other-than-temporary impairment losses that are not attributable to credit losses are reported as a component of accumulated other comprehensive income. In estimating other-than-temporary losses, management considers: the length of time and extent that fair value has been less than cost, the financial condition and near term prospects of the issuer, and the Corporation’s intent to sell, or whether it is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. If the Corporation intends to sell a security or it is more likely than not it will be required to sell a security before recovery of its amortized cost basis, the entire difference between amortized cost and fair value is recognized as impairment through earnings.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding.

Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Interest income on commercial, industrial, and agricultural loans, commercial mortgage loans, and residential real estate loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Consumer loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. Loans, including loans modified in a troubled debt restructuring, are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

All interest accrued but not received on loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Concentration of Credit Risk

Most of the Corporation’s business activity is with customers located within the Commonwealth of Pennsylvania and the state of Ohio. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economies of Pennsylvania and Ohio.

Purchased Credit Impaired Loans

The Corporation purchased loans in connection with its acquisition of FC Banc Corp. in 2013, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses.

Such purchased credit impaired loans are accounted for individually, and the Corporation estimates the amount and timing of expected cash flows for each loan. The expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of the expected cash flows is greater than the carrying amount, it is recognized as part of future interest income.

For loans purchased that did not show evidence of credit deterioration, the difference between the fair value of the loan at the acquisition date and the loan’s face value is being amortized as a yield adjustment over the estimated remaining life of the loan using the effective interest method.

Loans Held for Sale

Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Allowance for Loan Losses

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance account.

Management determines the adequacy of the allowance based on historical patterns of charge-offs and recoveries, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, industry experience, economic conditions, and other qualitative factors relevant to the collectability of the loan portfolio. While management believes that the allowance is adequate to absorb probable loan losses incurred at the balance sheet date, future adjustments may be necessary due to circumstances that differ substantially from the assumptions used in evaluating the adequacy of the allowance for loan losses.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or doubtful. A loan is impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired.

Commercial and commercial real estate loans are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Corporation over the most recent 2 years. This actual loss experience is supplemented with other factors based on the risks present for each portfolio segment. These historical loss factors include consideration of the following: levels of and trends in delinquencies, non-accrual loans, and classified loans; trends in volume and terms of loans; effects of any changes in lending policies and procedures; experience, ability, and depth of management; national and local economic trends and conditions; and concentrations of credit.

The following portfolio segments, which are the same as the Corporation’s portfolio classifications and associated risk characteristics, have been identified:

— Commercial, industrial, and agricultural – risk characteristics include recession-like economic conditions in many of the markets served by the Corporation and high levels of unemployment, which has caused consumer spending to slow.

— Commercial mortgages – the most significant risk characteristic is the subjectivity involved in real estate valuations for properties located in areas with stagnant or low growth economies.

— Residential real estate – risk characteristics include higher than historical levels of delinquencies and a weakened housing market.

— Consumer – risk characteristics include continuing weakness in industrial employment in many of the markets served by the Corporation and inflation.

— Credit cards – the most significant risk characteristic is the unsecured nature of credit card loans.

— Overdrafts – risk characteristics include the Corporation’s continued deposit growth and overall economic conditions which may lead to a greater likelihood of overdrawn deposit accounts.

Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Premiums and discounts recognized on acquired loans are recognized in earnings using the interest method. Credit losses on the acquired loan portfolio will be charged against the allowance for loan losses as incurred.

Federal Home Loan Bank (FHLB) Stock

As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Corporation is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants.

FHLB stock is held as a long-term investment, is valued at its cost basis and is analyzed for impairment based on the ultimate recoverability of the par value. The Company evaluates impairment quarterly. The decision of whether impairment exists is a matter of judgment that reflects our view of the FHLB’s long-term performance, which includes factors such as the following:

— its operating performance;

— the severity and duration of declines in the fair value of its net assets related to its capital stock amount;

— its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance;

— the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of FHLB; and

— its liquidity and funding position.

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation. Depreciation of premises and equipment is computed principally by the straight line method. In general, useful lives range from 3 to 39 years with lives for furniture, fixtures and equipment ranging from 3 to 10 years and lives of buildings and building improvements ranging from 15 to 39 years. Amortization of leasehold improvements is computed using the straight-line method over useful lives of the leasehold improvements or the term of the lease, whichever is shorter. Maintenance, repairs and minor renewals are charged to expense as incurred.

Foreclosed Assets

Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis, and are them carried at the lower of cost or fair value. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed.

Bank Owned Life Insurance

The Corporation has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets

Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate an impairment test should be performed.

The Corporation has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives. Goodwill is the only intangible asset with an indefinite life on the Corporation’s balance sheet. Other intangible assets consist of a core deposit intangible asset arising from the acquisition of FC Banc Corp. in 2013. The core deposit intangible asset is amortized using an accelerated method over its estimated useful life of 7 years.

Long-term Assets

Premises and equipment, goodwill and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Derivatives

Derivative financial instruments are recognized as assets or liabilities at fair value. The Corporation has interest rate swap agreements which are used as part of its asset liability management to help manage interest rate risk. The Corporation does not use derivatives for trading purposes.

At the inception of a derivative contract, the Corporation designates the derivative as one of three types based on the purpose of the contract and belief as to its effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Corporation formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Corporation also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Corporation discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

Advertising Costs

Advertising costs are generally expensed as incurred and amounted to $939, $859, and $822, for 2013, 2012 and 2011 respectively.

Mortgage Servicing Rights

Servicing rights are recognized separately when they are acquired through sales of loans. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Corporation compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material.

Treasury Stock

The purchase of the Corporation’s common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a first-in-first-out basis.

Stock-Based Compensation

The Corporation has a stock incentive plan for key employees and independent directors. The Stock Incentive Plan, which is administered by a committee of the Board of Directors, provides for up to 500,000 shares of common stock in the form of nonqualified options or restricted stock. For key employees, the plan vesting schedule is one-fourth of granted stock-based awards per year beginning one year after the grant date with 100% vested on the fourth anniversary. For independent directors, the vesting schedule is one-third of granted stock-based awards per year beginning one year after the grant date with 100% vested on the third anniversary.

At December 31, 2013 and 2012, there was no unrecognized compensation cost related to nonvested stock options granted under this plan, and no stock options were granted during the years then ended.

During 2013, 2012 and 2011, the Executive Compensation and Personnel Committee of the Board of Directors granted a total of 31,500, 26,900 and 17,900 shares, respectively, of restricted common stock to certain key employees and all independent directors of the Corporation. Compensation expense for the restricted stock awards is recognized over the requisite service period based on the fair value of the shares at the date of grant on a straight-line basis. Unearned restricted stock awards are recorded as a reduction of shareholders’ equity until earned. Compensation expense resulting from these restricted stock awards was $390, $277 and $213 for the years ended December 31, 2013, 2012 and 2011, respectively.

Comprehensive Income

The Corporation presents comprehensive income as part of the Consolidated Statement of Income and Comprehensive Income. Other comprehensive income (loss) consists of unrealized holding gains (losses) on the available for sale securities portfolio, changes in the unrecognized actuarial gain and transition obligation related to the Corporation’s post retirement benefits plans, and changes in the fair value of the Corporation’s interest rate swaps.

Income Taxes

The Corporation files a consolidated U.S. income tax return that includes all subsidiaries except County Reinsurance Company which files a separate return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans

The Corporation’s expense associated with its 401(k) plan is determined under the provisions of the plan document and includes both matching and profit sharing components. Deferred compensation and supplemental retirement plan expenses allocate the benefits over years of service.

Earnings Per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested stock awards are participating securities.

Cash and Cash Equivalents

For purposes of the consolidated statement of cash flows, the Corporation defines cash and cash equivalents as cash and due from banks, interest bearing deposits with other banks, and Federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing time deposits with other banks and borrowings with original maturities of 90 days or less.

Restrictions on Cash

The Bank is required to maintain average reserve balances with the Federal Reserve Bank or in vault cash. The average amount of these non-interest bearing reserve balances for the year ended December 31, 2013 and 2012, was $50, which was maintained in vault cash. Note 12 to the consolidated financial statements discloses the cash collateral balances required to be maintained in connection with the Corporation’s interest rate swaps.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements.

Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Adoption of New Accounting Standards

In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02). ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about these amounts. The effect of adopting ASU 2013-02 did not have a material effect on the Corporation’s financial statements.

In July 2013, the FASB issued Accounting Standards Update 2013-10, “Derivatives and Hedging (Topic 815), Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes” (ASU 2013-10). ASU 2013-10 was issued to permit the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to direct Treasury obligations of the U.S. Government and the London Interbank Offered Rate (LIBOR) swap rate. ASU 2013-10 is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material effect on the Corporation’s financial statements.

Effect of Newly Issued But Not Yet Effective Accounting Standards

In February 2013, the FASB issued Accounting Standards Update 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date” (ASU 2013-04). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. ASU 2013-04 is effective for reporting periods beginning after December 15, 2013. The effect of adopting ASU 2013-04 is not expected to have a material effect on the Corporation’s financial statements.

In July 2013, the FASB issued Accounting Standards Update 2013-11, “Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11). ASU 2013-11 was issued to clarify the financial presentation of unrecognized tax benefits in the instances described. ASU 2013-11 is effective for reporting periods beginning after December 15, 2013. The effect of adopting ASU 2013-11 is not expected to have a material effect on the Corporation’s financial statements.

In January 2014, the FASB issued Accounting Standards Update 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40)” (ASU 2014-04). The amendments in ASU 2014-04 clarify the circumstances under which an in substance repossession or foreclosure occurs and when a creditor is considered to have received physical possession of a residential real estate property collateralizing a residential real estate loan. The amendments in ASU 2014-04 also require interim and annual disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU 2014-04 is effective for reporting periods beginning after December 15, 2014. The effect of adopting ASU 2014-04 is not expected to have a material effect on the Corporation’s financial statements.

Reclassifications

Certain prior year amounts have been reclassified for comparative purposes.

XML

Related Party Transactions - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Aggregate of loans total	$ 2,238	$ 1,144
Payments to fund long-term loans to related parties	1,432
Repayment total	463
Loans added due to change in the composition of related parties	125
Deposits	$ 48,249	$ 25,293

XML

Securities - Trading Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	$ 4,127	$ 4,459
Corporate Equity Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	2,705	3,117
Certificates of Deposit [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	253	408
International Mutual Funds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	259	287
Large Cap Growth Mutual Funds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	197	157
Money Market Mutual Funds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	124	110
Large Cap Value Mutual Funds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	129	104
Corporate Notes and Bonds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	152	101
Real Estate Investment Trust Mutual Funds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	39	65
U.S. Government Sponsored Entities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	52	58
Small Cap Mutual Funds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	83	26
Mid Cap Mutual Funds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	84	26
Commodities Mutual Funds [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading securities	$ 50	$ 0

XML

Fair Value - Carrying Amount and Fair Value of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 29,633	$ 31,881	$ 39,703	$ 37,432
Interest bearing time deposits with other banks	275	225
Securities available for sale	685,991	737,311
Trading securities	4,127	4,459
Loans held for sale	487	2,398
Net loans	1,279,129	913,764
FHLB and other equity interests	7,533	6,684
LIABILITIES
Deposits	(1,835,314)	(1,485,003)
Subordinated debentures	(20,620)	(20,620)
Carrying Amount [Member]
ASSETS
Cash and cash equivalents	29,633	31,881
Interest bearing time deposits with other banks	275	225
Securities available for sale	685,991	737,311
Trading securities	4,127	4,459
Loans held for sale	487	2,398
Net loans	1,279,129	913,764
FHLB and other equity interests	7,533	6,684
Accrued interest receivable	8,032	6,863
LIABILITIES
Deposits	(1,835,314)	(1,485,003)
FHLB and other borrowings	(87,950)	(97,806)
Subordinated debentures	(20,620)	(20,620)
Interest rate swaps	(1,116)	(1,745)
Accrued interest payable	(868)	(1,022)
Total Fair Value [Member]
ASSETS
Cash and cash equivalents	29,633	31,881
Interest bearing time deposits with other banks	274	281
Securities available for sale	685,991	737,311
Trading securities	4,127	4,459
Loans held for sale	507	2,460
Net loans	1,276,622	946,238
Accrued interest receivable	8,032	6,863
LIABILITIES
Deposits	(1,834,789)	(1,487,545)
FHLB and other borrowings	(87,833)	(105,850)
Subordinated debentures	(11,178)	(10,682)
Interest rate swaps	(1,116)	(1,745)
Accrued interest payable	(868)	(1,022)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
ASSETS
Cash and cash equivalents	29,633	31,881
Interest bearing time deposits with other banks	0	0
Securities available for sale	985	54,169
Trading securities	3,923	4,300
Loans held for sale	0	0
Net loans	0	0
Accrued interest receivable	368	278
LIABILITIES
Deposits	(1,569,552)	(1,272,060)
FHLB and other borrowings	0	0
Subordinated debentures	0	0
Interest rate swaps	0	0
Accrued interest payable	(200)	(301)
Significant Other Observable Inputs (Level 2) [Member]
ASSETS
Cash and cash equivalents	0	0
Interest bearing time deposits with other banks	274	281
Securities available for sale	684,345	680,562
Trading securities	204	159
Loans held for sale	507	2,460
Net loans	0	0
Accrued interest receivable	3,302	3,498
LIABILITIES
Deposits	(265,237)	(215,485)
FHLB and other borrowings	(87,833)	(105,850)
Subordinated debentures	(11,178)	(10,682)
Interest rate swaps	(1,116)	(1,745)
Accrued interest payable	(653)	(707)
Significant Unobservable Inputs (Level 3) [Member]
ASSETS
Cash and cash equivalents	0	0
Interest bearing time deposits with other banks	0	0
Securities available for sale	661	2,580
Trading securities	0	0
Loans held for sale	0	0
Net loans	1,276,622	946,238
Accrued interest receivable	4,362	3,087
LIABILITIES
Deposits	0	0
FHLB and other borrowings	0	0
Subordinated debentures	0	0
Interest rate swaps	0	0
Accrued interest payable	$ (15)	$ (14)

XML

Interest Rate Swaps (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Amounts and Locations of Activity Related to the Interest Rate Swaps Designated as Cash Flow Hedges within the Corporation's Consolidated Balance Sheet and Statement of Income

The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012, and 2011:

As of December 31	Liability Derivative
	Balance Sheet	Fair value
	Location	2013	2012
Interest rate contract	Accrued interest and other liabilities	($1,116)	($1,745)
For the Year Ended December 31, 2013	(a)	(b)		(c)	(d)	(e)
Interest rate contract	$409	Interest expense – subordinated debentures		($400)	Other income	$0
For the Year Ended December 31, 2012
Interest rate contract	($49)	Interest expense – subordinated debentures		($390)	Other income	$0
For the Year Ended December 31, 2011
Interest rate contract	($522)	Interest expense – subordinated debentures		($402)	Other income	$0

(a) Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax

(b) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(c) Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(d) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

(e) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

XML

Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Parent Company Only Financial Information

21.  Parent Company Only Financial Information (Dollars in thousands)

CONDENSED BALANCE SHEETS	December 31,
	2013		2012
Assets
Cash	$	1,778	$	2,029
Trading securities		276		229
Investment in bank subsidiary		161,983		138,195
Investment in non-bank subsidiaries		22,738		27,796
Deferred tax asset		636		883
Other assets		2,240		2,249
Total assets	$	189,651	$	171,381
Liabilities
Borrowings from subsidiary	$	1,350	$	1,950
Subordinated debentures		20,620		20,620
Other liabilities		2,770		3,447
Total liabilities		24,740		26,017
Total shareholders’ equity		164,911		145,364
Total liabilities and shareholders’ equity	$	189,651	$	171,381

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31,
Income:	2013			2012			2011
Dividends from:
Bank subsidiary	$	1,875		$	7,990		$	7,600
Non-bank subsidiaries		6,674			0			0
Other		208			208			146
Total income		8,757			8,198			7,746
Expenses		(1,461	)		(1,457	)		(1,410	)
Income before income taxes and equity in undistributed net income of subsidiaries:		7,296			6,741			6,336
Income tax benefit		438			438			443
Equity in undistributed net income of bank subsidiary		14,080			8,682			7,162
Equity in undistributed net income (loss) of non-bank subsidiaries		(5,135	)		1,275			1,163
Net income		16,679			17,136			15,104
Other Comprehensive Income (Loss):
Net change in unrealized gains/losses on available for sale securities, net of reclassification and tax		(23,675	)		3,561			14,441
Change in actuarial gain, net of amortization and tax, for post-employment health care plan, net of tax		(103	)		(349	)		(485	)
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of tax		409			(49	)		(522	)
Total other comprehensive income (loss)		(23,369	)		3,163			13,434
Comprehensive income (loss)	$	(6,690	)	$	20,299		$	28,538

CONDENSED STATEMENTS OF CASH FLOWS	Year Ended December 31,
	2013			2012			2011
Net income
Adjustments to reconcile net income to net cash provided by	$	16,679		$	17,136		$	15,104
operating activities:
Equity in undistributed net income of bank subsidiary		(14,080	)		(8,682	)		(7,162	)
Equity in undistributed (net income) loss of non-bank subsidiaries		5,135			(1,275	)		(1,163	)
Net unrealized (gains) losses on trading securities		(47	)		(54	)		2
Decrease in other assets		112			47			39
Increase in other liabilities		384			384			334
Net cash provided by operating activities		8,183			7,556			7,154
Cash flows from investing activities:
Purchase of securities		0			0			(100	)
Net cash used in investing activities		0			0			(100	)
Cash flows from financing activities:
Dividends paid		(8,573	)		(8,214	)		(8,125	)
Proceeds from sale of treasury stock and option exercises		739			951			1,447
Net advance to (repayment from) subsidiary		(600	)		(200	)		400
Net cash used in financing activities		(8,434	)		(7,463	)		(6,278	)
Net increase (decrease) in cash		(251	)		93			776
Cash beginning of year		2,029			1,936			1,160
Cash end of year	$	1,778		$	2,029		$	1,936

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Fair Value

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value

20.  Fair Value

Fair Value Measurement

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy has also been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following three levels of inputs are used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair values of most trading securities and securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value of one corporate bond held by the Corporation has been determined by using Level 3 inputs. The Corporation has engaged a valuation expert to price this security using a proprietary model which incorporates assumptions about certain factors that market participants would use in pricing the securities, including bid/ask spreads and liquidity and credit premiums.

The Corporation’s structured pooled trust preferred security is priced using Level 3 inputs. The decline in the level of observable inputs and market activity in this class of investments by the measurement date has been significant and resulted in unreliable external pricing. Broker pricing and bid/ask spreads, when available, vary widely, and the once-active market has become comparatively inactive. The Corporation engaged a third party consultant who has developed a model for pricing this security. Information such as historical and current performance of the underlying collateral, deferral and default rates, collateral coverage ratios, break in yield calculations, cash flow projections, liquidity and credit premiums required by a market participant, and financial trend analysis with respect to the individual issuing financial institutions and insurance companies are utilized in determining the security valuation. Due to the current market conditions as well as the limited trading activity of these types of securities, the market value of the Corporation’s structured pooled trust preferred security is highly sensitive to assumption changes and market volatility.

The Corporation’s derivative instrument is an interest rate swap that is similar to those that trade in liquid markets. As such, significant fair value inputs can generally be verified and do not typically involve significant management judgments (Level 2 inputs).

The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals prepared by third-parties. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also adjusts appraised values based on the length of time that has passed since the appraisal date and other factors. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2013 and 2012:

				Fair Value Measurements at December 31, 2013 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Treasury	$	0		$	0	$	0		$	0
U.S. Government sponsored entities		181,625			0		181,625			0
States and political subdivisions		177,943			0		177,943			0
Residential and multi-family mortgage		242,607			0		242,607			0
Commercial mortgage		374			0		374			0
Corporate notes and bonds		14,075			0		14,075			0
Pooled trust preferred		661			0		0			661
Pooled SBA		67,721			0		67,721			0
Other securities		985			985		0			0
Total Securities Available For Sale	$	685,991		$	985	$	684,345		$	661
Trading Securities:
Corporate equity securities	$	2,705		$	2,705	$	0		$	0
Certificates of deposit		253			253		0			0
International mutual funds		259			259		0			0
Large cap growth mutual funds		197			197		0			0
Money market mutual funds		124			124		0			0
Large cap value mutual funds		129			129		0			0
Corporate notes and bonds		152			0		152			0
Real estate investment trust mutual funds		39			39		0			0
U.S. Government sponsored entities		52			0		52			0
Small cap mutual funds		83			83		0			0
Mid cap mutual funds		84			84		0			0
Commodities mutual funds		50			50		0			0
Total Trading Securities	$	4,127		$	3,923	$	204		$	0
Liabilities,
Interest rate swaps	$	(1,116	)	$	0	$	(1,116	)	$	0

				Fair Value Measurements at December 31, 2012 Using
Description	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets:
Securities Available For Sale:
U.S. Treasury	$	4,036		$	0	$	4,036		$	0
U.S. Government sponsored entities		163,781			0		163,781			0
States and political subdivisions		181,279			0		181,279			0
Residential and multi-family mortgage		316,822			0		316,822			0
Commercial mortgage		1,304			0		1,304			0
Corporate notes and bonds		15,024			0		13,044			1,980
Pooled trust preferred		600			0		0			600
Pooled SBA		52,927			52,631		296			0
Other securities		1,538			1,538		0			0
Total Securities Available For Sale	$	737,311		$	54,169	$	680,562		$	2,580
Trading Securities:
Corporate equity securities	$	3,117		$	3,117	$	0		$	0
Certificates of deposit		408			408		0			0
International mutual funds		287			287		0			0
Large cap growth mutual funds		157			157		0			0
Money market mutual funds		110			110		0			0
Large cap value mutual funds		104			104		0			0
Corporate notes and bonds		101			0		101			0
Real estate investment trust mutual funds		65			65		0			0
U.S. Government sponsored entities		58			0		58			0
Small cap mutual funds		26			26		0			0
Mid cap mutual funds		26			26		0			0
Total Trading Securities	$	4,459		$	4,300	$	159		$	0
Liabilities,
Interest rate swaps	$	(1,745	)	$	0	$	(1,745	)	$	0

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2013:

	Corporate notes and bonds			Pooled trust preferred
Balance, January 1, 2013	$	1,980		$	600
Total gains or (losses):
Included in other comprehensive income (loss)		(29	)		61
Included in realized gains on available-for-sale securities		58			0
Sale of available-for-sale securities		(2,009	)		0
Balance, December 31, 2013	$	0		$	661

The table below presents a reconciliation and income statement classification of gains and losses for all securities available for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2012:

	Corporate notes and bonds			Pooled trust preferred
Balance, January 1, 2012	$	2,060		$	340
Total gains or (losses):
Included in other comprehensive income (unrealized)		(80	)		260
Balance, December 31, 2012	$	1,980		$	600

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2013:

	Fair value		Valuation Technique	Unobservable Inputs	Input Utilized
Pooled trust preferred	$	661	Discounted cash flow	Collateral default rate Yield Prepayment speed	2% in 2014; 1.5% in 2015; 1.0% in 2016; 0.5% in 2017 and thereafter 15% 2.0% constant prepayment rate in 2014 and thereafter

The following table presents quantitative information about Level 3 fair value measurements at December 31, 2012:

	Fair value	Valuation Technique	Unobservable Inputs	Input Utilized
Corporate notes and bonds	$1,980	Discounted cash flow	Constant prepayment rate Probability of default Discount rate	0% 0% 9.6%
Pooled trust preferred	$600	Discounted cash flow	Collateral default rate Discount rate Recovery probability	2% annually for 2 years; 0.36% thereafter 13% 10%, lagged 2 years

At December 31, 2013, the significant unobservable inputs used in the fair value measurement of the Corporation’s pooled trust preferred security are collateral default rate, yield, and prepayment speed. At December 31, 2012, the significant unobservable inputs used in the fair value measurement of the Corporation’s pooled trust preferred security are collateral default rate, yield, and recovery probability. Significant increases in specific-issuer default assumptions or decreases in specific-issuer recovery assumptions would result in a significantly lower fair value measurement. Conversely, decreases in specific-issuer default assumptions or increases in specific-issuer recovery assumptions would result in a higher fair value measurement.

During the year ended December 31, 2013, $52,631 of available for sale Pooled SBA securities reported as Level 1 securities as of the beginning of the year were transferred to the Level 2 category since the Corporation could not obtain quoted prices for identical assets in active markets.

During the year ended December 31, 2012, the following available for sale securities reported as Level 1 securities as of the beginning of the year were transferred to the Level 2 category:

	2012
U.S. Government sponsored entities	$	2,000
States and political subdivisions		4,655
Residential and multi-family mortgage		8,577
Total	$	15,232

These securities were transferred from the Level 1 category to the Level 2 category since there were no longer quoted prices for identical assets in active markets that the Corporation had the ability to access. There were no transfers of securities from Level 2 to Level 1 during the years ended December 31, 2013 or 2012. The Corporation’s policy for determining when a transfer between the Level 1 and Level 2 categories has occurred is to monitor and report such transfers as of each quarterly reporting period.

Assets and liabilities measured at fair value on a non-recurring basis are as follows at December 31, 2013 and 2012:

			Fair Value Measurements at December 31, 2013 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	3,000		0		0	$	3,000
Commercial, industrial, and agricultural		3,706		0		0		3,706
			Fair Value Measurements at December 31, 2012 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant  Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Impaired loans:
Commercial mortgages	$	8,422	$	0	$	0	$	8,422
Commercial, industrial, and agricultural		1,973		0		0		1,973
Residential real estate		402		0		0		402

Impaired loans, which are measured for impairment using the fair value of collateral for collateral dependent loans, had a principal balance of $8,161, with a valuation allowance of $1,455 as of December 31, 2013, resulting in an additional provision for loan losses of $1,415 for the year then ended. Impaired loans had a principal balance of $12,535, with a valuation allowance of $1,738 as of December 31, 2012, resulting in an additional provision for loan losses of $2,558 for the year then ended.

The estimated fair values of impaired collateral dependent loans such as commercial or residential mortgages are determined primarily through third-party appraisals. When a collateral dependent loan, such as a commercial or residential mortgage loan, becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal, and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral and a further reduction for estimated costs to sell the property is applied, which results in an amount that is considered to be the estimated fair value. If a loan becomes impaired and the appraisal of related loan collateral is outdated, management applies an appropriate adjustment factor based on its experience with current valuations of similar collateral in determining the loan’s estimated fair value and resulting allowance for loan losses. Third-party appraisals are not customarily obtained in respect of unimpaired loans, unless in management’s view changes in circumstances warrant obtaining an updated appraisal.

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 December 31, 2013:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	3,000	Sales comparison approach	Adjustment for differences between the comparable sales	17%—61% (22%)
Impaired loans – commercial, industrial, and agricultural	$	3,274	Sales comparison approach	Adjustment for differences between the comparable sales	9%
Impaired loans – commercial, industrial, and agricultural	$	432	Income approach	Adjustment for differences in net operating income	2%

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 December 31, 2012:

	Fair value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Impaired loans – commercial mortgages	$	8,422	Sales comparison approach	Adjustment for differences between the comparable sales	1%—39% (19%)
Impaired loans – commercial, industrial, and agricultural	$	1,973	Income approach	Adjusting for differences in net operating income	24%—38% (27%)
Impaired loans – residential real estate	$	402	Sales comparison approach	Adjustment for differences between the comparable sales	10%—15% (11%)

Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at December 31, 2013:

	Carrying Amount			Fair Value Measurement Using:									Total Fair Value
				Level 1			Level 2			Level 3
ASSETS
Cash and cash equivalents	$	29,633		$	29,633		$	0		$	0		$	29,633
Interest bearing time deposits with other banks		275			0			274			0			274
Securities available for sale		685,991			985			684,345			661			685,991
Trading securities		4,127			3,923			204			0			4,127
Loans held for sale		487			0			507			0			507
Net loans		1,279,129			0			0			1,276,622			1,276,622
FHLB and other equity interests		7,533			n/a			n/a			n/a			n/a
Accrued interest receivable		8,032			368			3,302			4,362			8,032
LIABILITIES
Deposits	$	(1,835,314	)	$	(1,569,552	)	$	(265,237	)	$	0		$	(1,834,789	)
FHLB and other borrowings		(87,950	)		0			(87,833	)		0			(87,833	)
Subordinated debentures		(20,620	)		0			(11,178	)		0			(11,178	)
Interest rate swaps		(1,116	)		0			(1,116	)		0			(1,116	)
Accrued interest payable		(868	)		(200	)		(653	)		(15	)		(868	)

The following table presents the carrying amount and fair value of financial instruments at December 31, 2012:

	Carrying Amount			Fair Value Measurement Using:									Total Fair Value
				Level 1			Level 2			Level 3
ASSETS
Cash and cash equivalents	$	31,881		$	31,881		$	0		$	0		$	31,881
Interest bearing time deposits with other banks		225			0			281			0			281
Securities available for sale		737,311			54,169			680,562			2,580			737,311
Trading securities		4,459			4,300			159			0			4,459
Loans held for sale		2,398			0			2,460			0			2,460
Net loans		913,764			0			0			946,238			946,238
FHLB and other equity interests		6,684			n/a			n/a			n/a			n/a
Accrued interest receivable		6,863			278			3,498			3,087			6,863
LIABILITIES
Deposits	$	(1,485,003	)	$	(1,272,060	)	$	(215,485	)	$	0		$	(1,487,545	)
FHLB and other borrowings		(97,806	)		0			(105,850	)		0			(105,850	)
Subordinated debentures		(20,620	)		0			(10,682	)		0			(10,682	)
Interest rate swaps		(1,745	)		0			(1,745	)		0			(1,745	)
Accrued interest payable		(1,022	)		(301	)		(707	)		(14	)		(1,022	)

The methods and assumptions, not otherwise presented, used to estimate fair values are described as follows:

Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate fair values and are classified as Level 1.

Interest bearing time deposits with other banks: The fair value of interest bearing time deposits with other banks is estimated using a discounted cash flow calculation that applies interest rates currently being offered to a schedule of aggregated expected monthly maturities, resulting in a Level 2 classification.

Loans held for sale: The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification.

Loans: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values, resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

FHLB and other equity interests: It is not practical to determine the fair value of Federal Home Loan Bank stock and other equity interests due to restrictions placed on the transferability of these instruments.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value resulting in a classification that is consistent with the asset with which it is associated.

Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amount), resulting in a Level 1 classification. Fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits, resulting in a Level 2 classification.

FHLB and other borrowings: The fair values of the Corporation’s FHLB and other borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements, resulting in a Level 2 classification.

Subordinated debentures: The fair value of the Corporation’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of arrangements, resulting in a Level 3 classification.

Accrued interest payable: The carrying amount of accrued interest payable approximates fair value resulting in a classification that is consistent with the liability with which it is associated.

While estimates of fair value are based on management’s judgment of the most appropriate factors as of the balance sheet date, there is no assurance that the estimated fair values would have been realized if the assets had been disposed of or the liabilities settled at that date, since market values may differ depending on various circumstances. The estimated fair values would also not apply to subsequent dates.

In addition, other assets and liabilities that are not financial instruments, such as premises and equipment, are not included in the disclosures. Also, non-financial assets such as, among other things, the estimated earnings power of core deposits, the earnings potential of trust accounts, the trained workforce, and customer goodwill, which typically are not recognized on the balance sheet, may have value but are not included in the fair value disclosures.

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Interest Rate Swaps - Amounts and Locations of Activity Related to Interest Rate Swaps Designated as Cash Flow Hedges within Corporation's Consolidated Balance Sheet and Statement of Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Derivative [Line Items]
Interest rate contracts	$ 409	$ (49)	$ (522)
Interest Expense - Subordinated Debentures [Member]
Derivative [Line Items]
Interest expense, Fair Value	(400)	(390)	(402)
Other Income [Member]
Derivative [Line Items]
Other income	0	0	0
Accrued Interest and Other Liabilities [Member]
Derivative [Line Items]
Interest rate contract, fair value	$ (1,116)	$ (1,745)

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Business Combination - Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended			0 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Oct. 11, 2013 Farmers Citizens Bank [Member]	Dec. 31, 2013 Farmers Citizens Bank [Member]	Dec. 31, 2012 Farmers Citizens Bank [Member]
Consideration paid:
Cash	$ 0	$ 1,248	$ 0	$ 8,000	$ 8,013
Common stock				33,600	33,561
Fair value of total consideration transferred		1,248		41,600	41,574
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents					54,995
Securities available for sale					34,214
Loans					247,737
FHLB and other equity interests					1,789
Premises and equipment					4,328
Bank owned life insurance					3,955
Mortgage servicing rights					83
Core deposit intangible					4,834
Accrued interest receivable and other assets					8,093
Total assets acquired					360,028
Demand deposits					248,812
Time deposits					83,214
Accrued interest payable and other liabilities					2,676
Total liabilities assumed					334,702
Total identifiable net assets					25,326
Goodwill	$ 27,194	$ 10,946	$ 10,821		$ 16,248	$ 125

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

The following is a summary of income tax expense for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Current – federal	$	7,189		$	6,535		$	4,951
Current – state		128			116			137
Deferred - federal		(977	)		(240	)		441
Income tax expense	$	6,340		$	6,411		$	5,529

Components of Net Deferred Tax Asset (Liability)

The components of the net deferred tax asset (liability) as of December 31, 2013 and 2012 are as follows:

	2013		2012
Deferred tax assets:
Allowance for loan losses	$	5,084	$	4,632
Unrealized loss on securities available for sale		4,085		0
Fair value adjustments – business combination		3,541		0
Deferred compensation		2,179		1,753
Impaired security valuation		590		670
Net operating loss carryover		2,155		0
Capital loss carryover		0		278
Post-retirement benefits		1,308		1,063
Unrealized loss on interest rate swap		391		616
Nonaccrual loan interest		516		305
Accrued expenses		817		297
Other		296		312
		20,962		9,926
Deferred tax liabilities:
Unrealized gain on securities available for sale		0		8,636
Premises and equipment		1,527		1,535
Intangibles – section 197		5,130		3,179
Mortgage servicing rights		317		250
Other		328		339
		7,302		13,939
Net deferred tax asset (liability)	$	13,660	($	4,013	)

Reconciliation of Income Tax Attributable to Pre-Tax Income at Federal Statutory Tax Rates to Income Tax Expense

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:

	2013			%			2012			%			2011			%
Tax at statutory rate	$	8,057			35.0		$	8,241			35.0		$	7,222			35.0
Tax exempt income, net		(1,664	)		(7.2	)		(1,553	)		(6.6	)		(1,353	)		(6.6	)
Bank owned life insurance		(543	)		(2.4	)		(341	)		(1.4	)		(325	)		(1.6	)
Merger costs		233			1.0			0			0.0			0			0.0
Other		257			1.1			64			0.2			(15	)		(0.0	)
Income tax expense	$	6,340			27.5		$	6,411			27.2		$	5,529			26.8

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Other Comprehensive Income

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Other Comprehensive Income

22.  Other Comprehensive Income

Other comprehensive income components and related tax effects were as follows for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Unrealized holding gains (losses) on available for sale securities	$	(36,130	)	$	6,597		$	22,457
Less reclassification adjustment for gains recognized in earnings		(355	)		(1,379	)		(614	)
Net unrealized gains		(36,485	)		5,218			21,843
Tax effect		12,770			(1,826	)		(7,642	)
Net-of-tax amount		(23,715	)		3,392			14,201
Unrealized holding gains (losses) on available for sale securities for which a portion of an other-than-temporary impairment has been recognized in earnings		61			260			(28	)
Less reclassification adjustment for impairment loss recognized in earnings		0			0			398
Net unrealized gains		61			260			370
Tax effect		(21	)		(91	)		(130	)
Net-of-tax amount		40			169			240
Actuarial loss on postemployment health care plan		(219	)		(578	)		(757	)
Net amortization of transition obligation and actuarial gain		61			41			11
Net unrealized loss on postemployment health care plan		(158	)		(537	)		(746	)
Tax effect		55			188			261
Net-of-tax amount		(103	)		(349	)		(485	)
Unrealized loss on interest rate swap		229			(465	)		(1,205	)
Less reclassification adjustment for losses recognized in earnings		400			390			402
Net unrealized gain (loss)		629			(75	)		(803	)
Tax effect		(220	)		26			281
Net-of-tax amount		409			(49	)		(522	)
Other comprehensive income	$	(23,369	)	$	3,163		$	13,434

The following is a summary of the change in the accumulated other comprehensive income (loss) balance, net of tax, for the years ended December 31, 2013, 2012, and 2011:

	Balance 1/1/11			Increase (Decrease)			Balance 12/31/11			Increase (Decrease)			Balance 12/31/12			Increase (Decrease)			Balance 12/31/13
Unrealized gains (losses) on securities available for sale	$	(1,963	)	$	14,441		$	12,478		$	3,561		$	16,039		$	(23,675	)	$	(7,636	)
Unrealized gain (loss) on postretirement benefits plan		(147	)		(485	)		(632	)		(349	)		(981	)		(103	)		(1,084	)
Unrealized loss on interest rate swap		(563	)		(522	)		(1,085	)		(49	)		(1,134	)		409			(725	)
Total	$	(2,673	)	$	13,434		$	10,761		$	3,163		$	13,924		$	(23,369	)	$	(9,445	)

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

23.    Quarterly Financial Data (Unaudited)

The unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 are as follows (in thousands, except per share data):

	Quarters Ended in 2013								Quarters Ended in 2012
	Mar. 31		June 30		Sept. 30		Dec. 31		Mar. 31		June 30		Sept. 30		Dec. 31
Total interest and dividend income	$	16,704	$	16,758	$	17,465	$	20,489	$	16,824	$	17,207	$	17,133	$	16,965
Net interest income		13,451		13,826		14,648		17,279		12,677		13,274		13,670		13,588
Provision for loan losses		930		3,115		846		1,247		1,104		1,746		1,188		2,343
Non-interest income		3,071		3,771		3,248		3,676		3,518		3,264		3,079		2,803
Non-interest expense		9,682		10,793		10,343		12,995		9,014		8,833		9,208		8,890
Net income		4,297		2,951		4,703		4,728		4,347		4,336		4,563		3,890
Net income per share, basic		0.34		0.24		0.38		0.33		0.35		0.35		0.37		0.31
Net income per share, diluted		0.34		0.24		0.38		0.33		0.35		0.35		0.37		0.31

During the quarter ended December 31, 2013, the Corporation completed its acquisition of FC Banc Corp. FC Banc Corp. results of operations were included in the Corporation’s results beginning October 12, 2013. A provision for loan losses in the amount of $2,343 was recorded during the quarter ended December 31, 2012 as a result of specific reserves required for impaired loans in the commercial, industrial, and agricultural loan portfolio in the fourth quarter of 2012.

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Common stock issued in acquisition, shares	1,873,879
Exercise of stock options, shares, including tax benefit	40,000	31,875	28,750
Reissue of treasury stock, shares	6,497	39,811	94,895
Cash dividends declared, per share	$ 0.66	$ 0.66	$ 0.66
Additional Paid-In Capital [Member]
Common stock issued in acquisition, shares	1,873,879
Restricted stock award grants shares	31,500	26,900	17,900
Forfeiture of restricted stock award grants, shares			1,488
Exercise of stock options, shares, including tax benefit	40,000	31,875	28,750
Reissue of treasury stock, shares	6,497	39,811	94,895
Retained Earnings [Member]
Cash dividends declared, per share	$ 0.66	$ 0.66	$ 0.66
Treasury Stock [Member]
Restricted stock award grants shares	31,500	26,900	17,900
Forfeiture of restricted stock award grants, shares			1,488
Exercise of stock options, shares, including tax benefit	40,000	31,875	28,750
Reissue of treasury stock, shares	6,497	39,811	94,895

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Business and Organization

Business and Organization

CNB Financial Corporation (the “Corporation”) is headquartered in Clearfield, Pennsylvania, and provides a full range of banking and related services through its wholly owned subsidiary, CNB Bank (the “Bank”). In addition, the Bank provides trust and asset management services, including the administration of trusts and estates, retirement plans, and other employee benefit plans as well as a full range of wealth management services. The Bank serves individual and corporate customers and is subject to competition from other financial institutions and intermediaries with respect to these services. In addition to the Bank, the Corporation also operates a consumer discount loan and finance business through its wholly owned subsidiary, Holiday Financial Services Corporation (“Holiday”). The Corporation and these and its other subsidiaries are subject to examination by federal and state regulators. The Corporation’s market area is primarily concentrated in the central and northwest regions of the Commonwealth of Pennsylvania and in the central region of the state of Ohio.

Basis of Financial Presentation

Basis of Financial Presentation

The financial statements are consolidated to include the accounts of the Corporation and the Bank, CNB Securities Corporation, Holiday, County Reinsurance Company, and CNB Insurance Agency. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Use of Estimates

Use of Estimates

To prepare financial statements in conformity with accounting principles generally accepted in the U.S., management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, carrying value of goodwill, mortgage servicing rights, fair value of assets acquired and liabilities assumed in connection with business combinations and fair values of securities and other financial instruments are particularly subject to change.

Operating Segments

Operating Segments

While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Corporation-wide basis, and operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.

Interest Bearing Time Deposits with Other Banks

Interest Bearing Time Deposits with Other Banks

Interest-bearing deposits in other financial institutions mature within one year and are carried at cost.

Securities

Securities

When purchased, securities are classified as held to maturity, trading or available for sale. Debt securities are classified as held to maturity when the Corporation has the positive intent and ability to hold the securities to maturity. Held to maturity securities are carried at amortized cost. Debt or equity securities are classified as trading when purchased principally for the purpose of selling them in the near term, or when the fair value option has been elected. Trading securities are recorded at fair value with changes in fair value included in earnings in non-interest income. Available for sale securities are those securities not classified as held to maturity or trading and are carried at their fair value. Unrealized gains and losses, net of deferred tax, on securities classified as available for sale are recorded as other comprehensive income. Management has not classified any debt securities as held to maturity.

The amortized cost of debt securities classified as held to maturity or available for sale is adjusted for the amortization of premiums and the accretion of discounts over the period through contractual maturity or, in the case of mortgage-backed securities and collateralized mortgage obligations, over the estimated life of the security. Such amortization is included in interest income from securities. Gains and losses on securities sold are recorded on the trade date and based on the specific identification method.

Declines in the fair value of debt securities below their cost that are other than temporary and attributable to credit losses are reflected in earnings. Other-than-temporary impairment losses that are not attributable to credit losses are reported as a component of accumulated other comprehensive income. In estimating other-than-temporary losses, management considers: the length of time and extent that fair value has been less than cost, the financial condition and near term prospects of the issuer, and the Corporation’s intent to sell, or whether it is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. If the Corporation intends to sell a security or it is more likely than not it will be required to sell a security before recovery of its amortized cost basis, the entire difference between amortized cost and fair value is recognized as impairment through earnings.

Loans

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding.

Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Interest income on commercial, industrial, and agricultural loans, commercial mortgage loans, and residential real estate loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Consumer loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. Loans, including loans modified in a troubled debt restructuring, are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

All interest accrued but not received on loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Concentration of Credit Risk

Concentration of Credit Risk

Most of the Corporation’s business activity is with customers located within the Commonwealth of Pennsylvania and the state of Ohio. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economies of Pennsylvania and Ohio.

Purchased Credit Impaired Loans

Purchased Credit Impaired Loans

The Corporation purchased loans in connection with its acquisition of FC Banc Corp. in 2013, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses.

Such purchased credit impaired loans are accounted for individually, and the Corporation estimates the amount and timing of expected cash flows for each loan. The expected cash flows in excess of the amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of the expected cash flows is greater than the carrying amount, it is recognized as part of future interest income.

For loans purchased that did not show evidence of credit deterioration, the difference between the fair value of the loan at the acquisition date and the loan’s face value is being amortized as a yield adjustment over the estimated remaining life of the loan using the effective interest method.

Loans Held for Sale

Loans Held for Sale

Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of the mortgage loan sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Allowance for Loan Losses

Allowance for Loan Losses

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance account.

Management determines the adequacy of the allowance based on historical patterns of charge-offs and recoveries, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, industry experience, economic conditions, and other qualitative factors relevant to the collectability of the loan portfolio. While management believes that the allowance is adequate to absorb probable loan losses incurred at the balance sheet date, future adjustments may be necessary due to circumstances that differ substantially from the assumptions used in evaluating the adequacy of the allowance for loan losses.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired or loans otherwise classified as substandard or doubtful. A loan is impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired.

Commercial and commercial real estate loans are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component of the allowance for loan losses covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Corporation over the most recent 2 years. This actual loss experience is supplemented with other factors based on the risks present for each portfolio segment. These historical loss factors include consideration of the following: levels of and trends in delinquencies, non-accrual loans, and classified loans; trends in volume and terms of loans; effects of any changes in lending policies and procedures; experience, ability, and depth of management; national and local economic trends and conditions; and concentrations of credit.

The following portfolio segments, which are the same as the Corporation’s portfolio classifications and associated risk characteristics, have been identified:

— Commercial, industrial, and agricultural – risk characteristics include recession-like economic conditions in many of the markets served by the Corporation and high levels of unemployment, which has caused consumer spending to slow.

— Commercial mortgages – the most significant risk characteristic is the subjectivity involved in real estate valuations for properties located in areas with stagnant or low growth economies.

— Residential real estate – risk characteristics include higher than historical levels of delinquencies and a weakened housing market.

— Consumer – risk characteristics include continuing weakness in industrial employment in many of the markets served by the Corporation and inflation.

— Credit cards – the most significant risk characteristic is the unsecured nature of credit card loans.

— Overdrafts – risk characteristics include the Corporation’s continued deposit growth and overall economic conditions which may lead to a greater likelihood of overdrawn deposit accounts.

Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Premiums and discounts recognized on acquired loans are recognized in earnings using the interest method. Credit losses on the acquired loan portfolio will be charged against the allowance for loan losses as incurred.

Federal Home Loan Bank (FHLB) Stock

Federal Home Loan Bank (FHLB) Stock

As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Corporation is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants.

FHLB stock is held as a long-term investment, is valued at its cost basis and is analyzed for impairment based on the ultimate recoverability of the par value. The Company evaluates impairment quarterly. The decision of whether impairment exists is a matter of judgment that reflects our view of the FHLB’s long-term performance, which includes factors such as the following:

— its operating performance;

— the severity and duration of declines in the fair value of its net assets related to its capital stock amount;

— its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance;

— the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of FHLB; and

— its liquidity and funding position.

Premises and Equipment

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation. Depreciation of premises and equipment is computed principally by the straight line method. In general, useful lives range from 3 to 39 years with lives for furniture, fixtures and equipment ranging from 3 to 10 years and lives of buildings and building improvements ranging from 15 to 39 years. Amortization of leasehold improvements is computed using the straight-line method over useful lives of the leasehold improvements or the term of the lease, whichever is shorter. Maintenance, repairs and minor renewals are charged to expense as incurred.

Foreclosed Assets

Foreclosed Assets

Assets acquired through or in lieu of loan foreclosure are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis, and are them carried at the lower of cost or fair value. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed.

Bank Owned Life Insurance

Bank Owned Life Insurance

The Corporation has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate an impairment test should be performed.

The Corporation has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives. Goodwill is the only intangible asset with an indefinite life on the Corporation’s balance sheet. Other intangible assets consist of a core deposit intangible asset arising from the acquisition of FC Banc Corp. in 2013. The core deposit intangible asset is amortized using an accelerated method over its estimated useful life of 7 years.

Long-Term Assets

Long-term Assets

Premises and equipment, goodwill and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Derivatives

Derivatives

Derivative financial instruments are recognized as assets or liabilities at fair value. The Corporation has interest rate swap agreements which are used as part of its asset liability management to help manage interest rate risk. The Corporation does not use derivatives for trading purposes.

At the inception of a derivative contract, the Corporation designates the derivative as one of three types based on the purpose of the contract and belief as to its effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Corporation formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Corporation also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Corporation discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

Advertising Costs

Advertising Costs

Advertising costs are generally expensed as incurred and amounted to $939, $859, and $822, for 2013, 2012 and 2011 respectively.

Mortgage Servicing Rights

Mortgage Servicing Rights

Servicing rights are recognized separately when they are acquired through sales of loans. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Corporation compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with mortgage banking income on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Servicing fee income, which is reported on the income statement as mortgage banking income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material.

Treasury Stock

Treasury Stock

The purchase of the Corporation’s common stock is recorded at cost. Purchases of the stock are made both in the open market and through negotiated private purchases based on market prices. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on a first-in-first-out basis.

Stock-Based Compensation

Stock-Based Compensation

The Corporation has a stock incentive plan for key employees and independent directors. The Stock Incentive Plan, which is administered by a committee of the Board of Directors, provides for up to 500,000 shares of common stock in the form of nonqualified options or restricted stock. For key employees, the plan vesting schedule is one-fourth of granted stock-based awards per year beginning one year after the grant date with 100% vested on the fourth anniversary. For independent directors, the vesting schedule is one-third of granted stock-based awards per year beginning one year after the grant date with 100% vested on the third anniversary.

At December 31, 2013 and 2012, there was no unrecognized compensation cost related to nonvested stock options granted under this plan, and no stock options were granted during the years then ended.

During 2013, 2012 and 2011, the Executive Compensation and Personnel Committee of the Board of Directors granted a total of 31,500, 26,900 and 17,900 shares, respectively, of restricted common stock to certain key employees and all independent directors of the Corporation. Compensation expense for the restricted stock awards is recognized over the requisite service period based on the fair value of the shares at the date of grant on a straight-line basis. Unearned restricted stock awards are recorded as a reduction of shareholders’ equity until earned. Compensation expense resulting from these restricted stock awards was $390, $277 and $213 for the years ended December 31, 2013, 2012 and 2011, respectively.

Comprehensive Income

Comprehensive Income

The Corporation presents comprehensive income as part of the Consolidated Statement of Income and Comprehensive Income. Other comprehensive income (loss) consists of unrealized holding gains (losses) on the available for sale securities portfolio, changes in the unrecognized actuarial gain and transition obligation related to the Corporation’s post retirement benefits plans, and changes in the fair value of the Corporation’s interest rate swaps.

Income Taxes

Income Taxes

The Corporation files a consolidated U.S. income tax return that includes all subsidiaries except County Reinsurance Company which files a separate return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans

Retirement Plans

The Corporation’s expense associated with its 401(k) plan is determined under the provisions of the plan document and includes both matching and profit sharing components. Deferred compensation and supplemental retirement plan expenses allocate the benefits over years of service.

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding non-vested stock awards are participating securities.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the consolidated statement of cash flows, the Corporation defines cash and cash equivalents as cash and due from banks, interest bearing deposits with other banks, and Federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing time deposits with other banks and borrowings with original maturities of 90 days or less.

Restrictions on Cash

Restrictions on Cash

The Bank is required to maintain average reserve balances with the Federal Reserve Bank or in vault cash. The average amount of these non-interest bearing reserve balances for the year ended December 31, 2013 and 2012, was $50, which was maintained in vault cash. Note 12 to the consolidated financial statements discloses the cash collateral balances required to be maintained in connection with the Corporation’s interest rate swaps.

Loss Contingencies

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Adoption of New Accounting Standards

Adoption of New Accounting Standards

In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (ASU 2013-02). ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about these amounts. The effect of adopting ASU 2013-02 did not have a material effect on the Corporation’s financial statements.

In July 2013, the FASB issued Accounting Standards Update 2013-10, “Derivatives and Hedging (Topic 815), Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes” (ASU 2013-10). ASU 2013-10 was issued to permit the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to direct Treasury obligations of the U.S. Government and the London Interbank Offered Rate (LIBOR) swap rate. ASU 2013-10 is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material effect on the Corporation’s financial statements.

Effect of Newly Issued But Not Yet Effective Accounting Standards

Effect of Newly Issued But Not Yet Effective Accounting Standards

In February 2013, the FASB issued Accounting Standards Update 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date” (ASU 2013-04). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. ASU 2013-04 is effective for reporting periods beginning after December 15, 2013. The effect of adopting ASU 2013-04 is not expected to have a material effect on the Corporation’s financial statements.

In July 2013, the FASB issued Accounting Standards Update 2013-11, “Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (ASU 2013-11). ASU 2013-11 was issued to clarify the financial presentation of unrecognized tax benefits in the instances described. ASU 2013-11 is effective for reporting periods beginning after December 15, 2013. The effect of adopting ASU 2013-11 is not expected to have a material effect on the Corporation’s financial statements.

In January 2014, the FASB issued Accounting Standards Update 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40)” (ASU 2014-04). The amendments in ASU 2014-04 clarify the circumstances under which an in substance repossession or foreclosure occurs and when a creditor is considered to have received physical possession of a residential real estate property collateralizing a residential real estate loan. The amendments in ASU 2014-04 also require interim and annual disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU 2014-04 is effective for reporting periods beginning after December 15, 2014. The effect of adopting ASU 2014-04 is not expected to have a material effect on the Corporation’s financial statements.

Reclassifications

Reclassifications

Certain prior year amounts have been reclassified for comparative purposes.

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Secondary Market Mortgage Activities - Summary of Activity for Capital Mortgage Servicing Rights (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Mortgage Banking [Abstract]
Balance, beginning of year	$ 714	$ 906	$ 909
Additions	350	85	249
Servicing rights acquired	83	0	0
Amortization	(242)	(277)	(252)
Balance, end of year	$ 905	$ 714	$ 906

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Stock-Based Compensation - Additional Information Related to the Stock Option Plan (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Intrinsic value of options exercised	$ 99	$ 114	$ 151
Cash received from option exercises	$ 698	$ 424	$ 259

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Change in the Carrying Amount of Goodwill

The change in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 is as follows:

	2013		2012
Balance, beginning of year	$	10,946	$	10,821
Acquired during the year		16,248		125
Balance, end of year	$	27,194	$	10,946

Estimated Amortization Expense

Estimated amortization expense for each of the next five years is as follows:

2014	$	1,180
2015		1,007
2016		835
2017		662
2018		489

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Unaudited Quarterly Results of Operations

The unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 are as follows (in thousands, except per share data):

	Quarters Ended in 2013								Quarters Ended in 2012
	Mar. 31		June 30		Sept. 30		Dec. 31		Mar. 31		June 30		Sept. 30		Dec. 31
Total interest and dividend income	$	16,704	$	16,758	$	17,465	$	20,489	$	16,824	$	17,207	$	17,133	$	16,965
Net interest income		13,451		13,826		14,648		17,279		12,677		13,274		13,670		13,588
Provision for loan losses		930		3,115		846		1,247		1,104		1,746		1,188		2,343
Non-interest income		3,071		3,771		3,248		3,676		3,518		3,264		3,079		2,803
Non-interest expense		9,682		10,793		10,343		12,995		9,014		8,833		9,208		8,890
Net income		4,297		2,951		4,703		4,728		4,347		4,336		4,563		3,890
Net income per share, basic		0.34		0.24		0.38		0.33		0.35		0.35		0.37		0.31
Net income per share, diluted		0.34		0.24		0.38		0.33		0.35		0.35		0.37		0.31

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Loans - Loans Individually Evaluated for Impairment Including Loans Modified in Troubled Debt Restructurings by Portfolio Segment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance, Total	$ 19,808	$ 29,225
Recorded Investment, Total	18,308	25,520
Allowance for Loan Losses Allocated	1,882	1,852
Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance, Related Allowance	5,402	2,542
Recorded Investment, Related Allowance	4,152	1,792
Allowance for Loan Losses Allocated	372	541
Unpaid Principal Balance, No Related Allowance	2,055	2,804
Recorded Investment, No Related Allowance	2,034	2,251
Allowance for Loan Losses Allocated, No Related Allowance	0	0
Commercial Mortgages [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance, Related Allowance	6,173	5,870
Recorded Investment, Related Allowance	5,970	5,329
Allowance for Loan Losses Allocated	1,510	1,230
Unpaid Principal Balance, No Related Allowance	6,178	17,285
Recorded Investment, No Related Allowance	6,152	15,555
Allowance for Loan Losses Allocated, No Related Allowance	0	0
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Principal Balance, Related Allowance	0	416
Recorded Investment, Related Allowance	0	381
Allowance for Loan Losses Allocated	0	81
Unpaid Principal Balance, No Related Allowance	0	308
Recorded Investment, No Related Allowance	0	212
Allowance for Loan Losses Allocated, No Related Allowance	$ 0	$ 0

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 25,769	$ 28,570
Interest bearing deposits with other banks	3,864	3,311
Total cash and cash equivalents	29,633	31,881
Interest bearing time deposits with other banks	275	225
Securities available for sale	685,991	737,311
Trading securities	4,127	4,459
Loans held for sale	487	2,398
Loans	1,299,259	931,225
Less: unearned discount	(3,896)	(3,401)
Less: allowance for loan losses	(16,234)	(14,060)
Net loans	1,279,129	913,764
FHLB and other equity interests	7,533	6,684
Premises and equipment, net	31,589	24,072
Bank owned life insurance	33,804	27,645
Mortgage servicing rights	904	714
Goodwill	27,194	10,946
Core deposit intangible	4,583
Accrued interest receivable and other assets	26,040	12,980
Total assets	2,131,289	1,773,079
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest bearing deposits	221,293	175,239
Interest bearing deposits	1,614,021	1,309,764
Total deposits	1,835,314	1,485,003
FHLB and other long-term borrowings	75,000	74,296
Other short-term borrowings	12,950	23,510
Subordinated debentures	20,620	20,620
Accrued interest payable and other liabilities	22,494	24,286
Total liabilities	1,966,378	1,627,715
Common stock, $0 par value; authorized 50,000,000 shares; issued 14,473,482 shares at December 31, 2013 and 12,599,603 shares at December 31, 2012	0	0
Additional paid in capital	77,923	44,223
Retained earnings	97,066	88,960
Treasury stock, at cost (45,702 shares for 2013 and 123,699 for 2012)	(633)	(1,743)
Accumulated other comprehensive income (loss)	(9,445)	13,924
Total shareholders' equity	164,911	145,364
Total Liabilities and Shareholders' Equity	$ 2,131,289	$ 1,773,079

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Unfunded Post Retirement Benefits Plan

The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Benefit obligation at beginning of year	$	2,224		$	1,674		$	1,073
Interest cost		84			69			56
Service cost		125			88			49
Actual claims		(167	)		(184	)		(262	)
Plan amendment		(602	)		0			0
Actuarial loss		821			577			758
Benefit obligation at end of year	$	2,485		$	2,224		$	1,674

Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income at December 31, 2013 and 2012 consist of:

	2013			2012
Net actuarial loss	$	(1,667	)	$	(1,502	)
Transition obligation		0			(7	)
		(1,667	)		(1,509	)
Tax effect		583			528
	$	(1,084	)	$	(981	)

Recognized Net Periodic Benefit Cost and Other Comprehensive Income

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:

	2013			2012			2011
Service cost	$	125		$	88		$	49
Interest cost		84			69			56
Net amortization of transition obligation and actuarial loss		61			41			11
Net periodic benefit cost		270			198			116
Net loss		821			578			758
Plan amendment		(602	)		0			0
Amortization of loss		(54	)		(34	)		(4	)
Amortization of transition obligation		(7	)		(7	)		(7	)
Total recognized in other comprehensive income		158			537			747
Total recognized in net periodic benefit cost and other comprehensive income	$	428		$	735		$	863

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Borrowings - Schedule of Remaining Borrowing Capacity with FHLB (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Borrowings Under Repurchase Agreements [Line items]
Borrowings	$ 65,000	$ 64,296
Interest Rate 2.09% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	20,000	20,000
Maturity date	Sep. 17, 2015
Interest Rate 4.60% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	10,000	10,000
Maturity date	Jun. 01, 2017
Interest Rate 4.02% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	5,000	5,000
Maturity date	Aug. 07, 2017
Interest Rate 4.10% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	5,000	5,000
Maturity date	Aug. 07, 2017
Interest Rate 4.47% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	10,000	10,000
Maturity date	Aug. 07, 2017
Interest Rate 3.97% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	10,000	10,000
Maturity date	Oct. 10, 2017
Interest Rate 4.72% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	700	700
Maturity date	Jul. 07, 2023
Interest Rate 4.31% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	2,280	2,388
Maturity date	Sep. 05, 2023
Interest Rate 5.24% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	535	557
Maturity date	Jun. 11, 2024
Interest Rate 3.35% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	302	321
Maturity date	May 24, 2026
Interest Rate 4.00% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	311	330
Maturity date	Oct. 14, 2026
Interest Rate 3.23% [Member]
Borrowings Under Repurchase Agreements [Line items]
Borrowings	$ 872	$ 0
Maturity date	Feb. 11, 2033

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Quarterly Financial Data (Unaudited) - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Information Disclosure [Abstract]
Provision for loan losses	$ 1,247	$ 846	$ 3,115	$ 930	$ 2,343	$ 1,188	$ 1,746	$ 1,104	$ 6,138	$ 6,381	$ 4,937

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Stock-Based Compensation - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of option outstanding and exercisable	$ 105	$ 13
Unrecognized compensation cost related to nonvested stock options granted	0	0
Fair value of shares vesting during period	323	206	173
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation Expense	390	277	213
Unvested Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested stock options granted	0
Total unrecognized compensation cost	$ 675	$ 536

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash Flows From Operating Activities:
Net income	$ 16,679	$ 17,136	$ 15,104
Adjustments to reconcile net income to net cash provided by operations:
Provision for loan losses	6,138	6,381	4,937
Depreciation and amortization of premises and equipment, core deposit intangible, and mortgage servicing rights	2,641	2,225	2,075
Amortization and accretion of securities premiums and discounts, deferred loan fees and costs, net yield and credit mark on acquired loans, and unearned income	3,541	4,509	2,786
Deferred taxes	(977)	(240)	441
Net impairment losses realized in earnings and realized gains on sales of available-for-sale securities	(355)	(1,379)	(216)
Net realized and unrealized gains on trading securities	(728)	(564)	(64)
Proceeds from sale of trading securities	5,811	3,386	343
Purchase of trading securities	(4,671)	(4,187)	(1,266)
Gain on sale of loans	(808)	(927)	(638)
Net gains on dispositions of premises and equipment and foreclosed assets	(252)	(158)	(104)
Proceeds from sale of loans	22,252	32,512	23,324
Origination of loans held for sale	(19,883)	(32,626)	(19,927)
Income on bank owned life insurance	(1,552)	(973)	(930)
Stock-based compensation expense	390	277	213
Contribution of treasury stock	120	120	120
Changes in:
Accrued interest receivable and other assets	(3,124)	(455)	(1,342)
Accrued interest payable and other liabilities	8,387	2,523	5,529
Net Cash Provided By Operating Activities	33,609	27,560	30,385
Cash Flows from Investing Activities:
Net (increase) decrease in interest bearing time deposits with other banks	(50)	(1)	2,593
Proceeds from maturities, prepayments and calls of available-for-sale securities	139,863	109,673	101,178
Proceeds from sales of available-for-sale securities	35,633	125,579	69,740
Purchase of available-for-sale securities	(130,412)	(332,155)	(288,757)
Loan origination and payments, net	(124,155)	(82,393)	(58,552)
Purchase of bank owned life insurance	(2,000)	(1,000)	(5,000)
Proceeds from death benefits associated with bank owned life insurance	1,348	0	0
Net cash acquired from FC Banc Corp.	46,982	0	0
Acquisition of consumer discount company	0	(1,248)	0
Redemption (purchase) of FHLB and other equity interests	940	(147)	(122)
Purchase of premises and equipment	(5,336)	(2,016)	(1,705)
Proceeds from the sale of premises and equipment and foreclosed assets	735	1,088	257
Net Cash Used In Investing Activities	(36,452)	(182,620)	(180,368)
Net change in:
Checking, money market and savings accounts	48,680	186,262	292,369
Certificates of deposit	(30,395)	(55,110)	(101,386)
Proceeds from sale of treasury stock	41	526	1,188
Proceeds from exercise of stock options	698	424	259
Cash dividends paid	(8,573)	(8,214)	(8,125)
Proceeds from long-term borrowings	900	0	700
Repayments on long-term borrowings	(196)	(160)	(133)
Net change in short-term borrowings	(10,560)	23,510	(32,618)
Net Cash Provided By (Used In) Financing Activities	595	147,238	152,254
Net (Decrease) Increase in Cash and Cash Equivalents	(2,248)	(7,822)	2,271
Cash and Cash Equivalents, Beginning	31,881	39,703	37,432
Cash and Cash Equivalents, Ending	29,633	31,881	39,703
Cash paid during the period for:
Interest	12,283	15,205	17,937
Income taxes	5,529	7,548	3,991
Supplemental Noncash Disclosures:
Transfers to other real estate owned	1,151	750	249
Grant of restricted stock awards from treasury stock	539	419	266
Net liabilities assumed from FC Banc Corp., excluding cash and cash equivalents	29,669	0	0
Fair value of common stock issued in connection with acquisition of FC Banc Corp.	$ 33,561	$ 0	$ 0

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Deposits - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deposits [Abstract]
Certificates of deposit of $100 thousand or more	$ 126,924	$ 87,018

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Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Basic earnings per common share computation
Net Income	$ 4,728	$ 4,703	$ 2,951	$ 4,297	$ 3,890	$ 4,563	$ 4,336	$ 4,347	$ 16,679	$ 17,136	$ 15,104
Net earnings allocated to participating securities									(73)	(62)	(42)
Net earnings allocated to common stock									16,606	17,074	15,062
Weighted average common shares outstanding, including shares considered participating securities									12,929	12,441	12,306
Less: Average participating securities									(50)	(41)	(33)
Weighted average shares									12,879	12,400	12,273
Basic earnings per common share	$ 0.33	$ 0.38	$ 0.24	$ 0.34	$ 0.31	$ 0.37	$ 0.35	$ 0.35	$ 1.29	$ 1.38	$ 1.23
Diluted earnings per common share computation
Net earnings allocated to common stock									16,606	17,074	15,062
Weighted average common shares outstanding for basic earnings per common share									12,879	12,400	12,273
Add: Dilutive effects of assumed exercises of stock options									2	3	6
Weighted average shares and dilutive potential common shares									12,881	12,403	12,279
Diluted earnings per common share	$ 0.33	$ 0.38	$ 0.24	$ 0.34	$ 0.31	$ 0.37	$ 0.35	$ 0.35	$ 1.29	$ 1.38	$ 1.23
Distributed Earnings Allocated to Common Stock [Member]
Basic earnings per common share computation
Net earnings allocated to common stock									8,532	8,182	8,101
Undistributed Earnings Allocated to Common Stock [Member]
Basic earnings per common share computation
Net earnings allocated to common stock									$ 8,074	$ 8,892	$ 6,961

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Interest Rate Swaps - Additional Information (Detail) (USD $)	0 Months Ended		12 Months Ended
	May 03, 2011	Aug. 01, 2008	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Term of interest rate swap agreement executed	5 years	5 years
Interest rate swap inception date	May 03, 2011	Aug. 01, 2008
Value of subordinated note hedged	$ 10,000,000	$ 10,000,000
Interest rate swap effective date	Sep. 15, 2013	Sep. 15, 2008
Interest rate	The interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2013 to September 15, 2018 without exchange of the underlying notional amount	The interest Rate swap involved the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2008 to the September 15, 2013 maturity date without exchange of the underlying notional amount
Interest rate swap maturity date		Sep. 15, 2013
Derivatives designated as fair value hedges			0	0
Accumulated other comprehensive loss estimated			378,000
Collateral amount for counterparty interest rate swap			$ 1,400,000	$ 1,950,000
LIBOR Plus 155 Basis Points [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Variable rate on the subordinated debt on effective date in case of interest rate swap			LIBOR plus 155 basis points
Variable interest rate on subordinate debt			1.79%
4.02% Fixed Rate Plus 155 Basis Points [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Variable rate on the subordinated debt on effective date in case of interest rate swap			4.02% fixed rate plus 155 basis points
Interest rate being paid by the corporation			5.57%
Interest Rate Swaps [Member]
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items]
Derivative basis spread on variable rate			1.55%
Derivative fixed interest rate rate basis			4.02%

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Securities (Tables)

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Securities Available for Sale

Securities available-for-sale at December 31, 2013 and 2012 are as follows:

	December 31, 2013								December 31, 2012
	Amortized Cost		Unrealized				Fair Value		Amortized Cost		Unrealized					Fair Value
			Gains		Losses						Gains		Losses
U.S. Treasury		$          0		$       0		$        0		$        0		$    4,018		$      18	$	0			$4,036
U.S. Gov’t sponsored entities		185,205		2,894		(6,474)		181,625		157,965		5,977		(161	)		163,781
State & political subdivisions		176,490		3,770		(2,317)		177,943		170,223		11,113		(57	)		181,279
Residential & multi-family mortgage		248,017		2,410		(7,820)		242,607		308,800		8,724		(702	)		316,822
Commercial mortgage		385		0		(11)		374		1,275		29		0			1,304
Corporate notes & bonds		15,744		65		(1,734)		14,075		17,368		26		(2,370	)		15,024
Pooled trust preferred		800		0		(139)		661		800		0		(200	)		600
Pooled SBA		70,077		688		(3,044)		67,721		50,667		2,277		(17	)		52,927
Other securities		1,020		0		(35)		985		1,521		17		0			1,538
Total		$697,738		$9,827		$(21,574)		$685,991		$712,637		$28,181		$(3,507)			$737,311

Trading Securities

Trading securities at December 31, 2013 and 2012 are as follows:

	2013		2012
Corporate equity securities	$	2,705	$	3,117
Certificates of deposit		253		408
International mutual funds		259		287
Large cap growth mutual funds		197		157
Money market mutual funds		124		110
Large cap value mutual funds		129		104
Corporate notes and bonds		152		101
Real estate investment trust mutual funds		39		65
U.S. Government sponsored entities		52		58
Small cap mutual funds		83		26
Mid cap mutual funds		84		26
Commodities mutual funds		50		0
Total	$	4,127	$	4,459

Securities with Unrealized Losses Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position

Securities with unrealized losses at December 31, 2013 and 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

December 31, 2013	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury	$	0	$	0		$	0	$	0		$	0	$	0
U.S. Gov’t sponsored entities		95,677		(5,394	)		17,964		(1,080	)		113,641		(6,474	)
State & political subdivisions		57,526		(2,192	)		5,324		(125	)		62,850		(2,317	)
Residential & multi-family mortgage		150,229		(6,806	)		16,608		(1,014	)		166,837		(7,820	)
Commercial mortgage		374		(11	)		0		0			374		(11	)
Corporate notes & bonds		0		0			9,662		(1,734	)		9,662		(1,734	)
Pooled trust preferred		0		0			661		(139	)		661		(139	)
Pooled SBA		36,842		(2,296	)		8,277		(748	)		45,119		(3,044	)
Other securities		985		(35	)		0		0			985		(35	)
	$	341,633	$	(16,734	)	$	58,496	$	(4,840	)	$	400,129	$	(21,574	)
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
December 31, 2012
U.S. Treasury	$	0	$	0		$	0	$	0		$	0	$	0
U.S. Gov’t sponsored entities		41,715		(161	)		0		0			41,715		(161	)
State & political subdivisions		7,857		(57	)		0		0			7,857		(57	)
Residential and multi-family mortgage		32,159		(688	)		4,254		(14	)		36,413		(702	)
Commercial mortgage		0		0			0		0			0		0
Corporate notes & bonds		0		0			13,002		(2,370	)		13,002		(2,370	)
Pooled trust preferred		0		0			600		(200	)		600		(200	)
Pooled SBA		3,521		(17	)		0		0			3,521		(17	)
Other securities		0		0			0		0			0		0
	$	85,252	$	(923	)	$	17,856	$	(2,584	)	$	103,108	$	(3,507	)

Summary of Structured Pooled Trust Preferred Securities

The following table provides detailed information related to the Corporation’s structured pooled trust preferred securities as of December 31, 2013 and for the years ended December 31, 2013, 2012, and 2011:

	As of December 31, 2013							Credit Losses Realized in Earnings
	Adjusted Amortized		Unrealized			Fair		Year Ended December 31,
	Cost		Gain (Loss)			Value		2013		2012		2011
ALESCO Preferred Funding V, Ltd.	$	800	$	(139	)	$	661	$	0	$	0	$	0
ALESCO Preferred Funding XII, Ltd.		0		0			0		0		0		280
ALESCO Preferred Funding XVII, Ltd.		0		0			0		0		0		0
Preferred Term Securities XVI, Ltd.		0		0			0		0		0		118
US Capital Funding VI, Ltd.		0		0			0		0		0		0
Total	$	800	$	(139	)	$	661	$	0	$	0	$	398

Roll-Forward of Other-Than-Temporary Impairment Amount Related to Credit Losses

A roll-forward of the other-than-temporary impairment amount related to credit losses for the years ended December 31, 2013, 2012 and 2011 is as follows:

	2013		2012		2011
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, beginning of period	$	4,054	$	4,054	$	3,656
Additional credit loss for which other-than-temporary impairment was not previously recognized		0		0		0
Additional credit loss for which other-than-temporary impairment was previously recognized		0		0		398
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, end of period	$	4,054	$	4,054	$	4,054

Schedule of Contractual Maturity of Securities Available for Sale, Excluding Equity Securities

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at December 31, 2013:

	December 31, 2013
	Amortized Cost		Fair Value
1 year or less	$	31,192	$	30,902
1 year – 5 years		141,228		141,410
5 years – 10 years		165,713		163,735
After 10 years		40,106		38,257
		378,239		374,304
Residential and multi-family mortgage		248,017		242,607
Pooled SBA		70,077		67,721
Commercial mortgage		385		374
Total debt securities	$	696,718	$	685,006

Information Pertaining to Security Sales

Information pertaining to security sales is as follows:

Year ended December 31	Proceeds		Gross Gains		Gross Losses
2013	$	35,633	$	849	$	494
2012		125,579		1,809		430
2011		69,740		878		264

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Parent Company Only Financial Information - Condensed Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Condensed Financial Statements, Captions [Line Items]
Net income	$ 16,679	$ 17,136	$ 15,104
Adjustments to reconcile net income to net cash provided by operating activities:
Net unrealized (gains) losses on trading securities	(728)	(564)	(64)
Decrease in other assets	(3,124)	(455)	(1,342)
Increase in other liabilities	8,387	2,523	5,529
Net Cash Provided By Operating Activities	33,609	27,560	30,385
Cash Flows from Investing Activities:
Purchase of securities	(130,412)	(332,155)	(288,757)
Net Cash Used In Investing Activities	(36,452)	(182,620)	(180,368)
Cash Flows From Financing Activities:
Dividends paid	(8,573)	(8,214)	(8,125)
Net Cash Provided By (Used In) Financing Activities	595	147,238	152,254
Net increase (decrease) in cash	(2,248)	(7,822)	2,271
Cash and Cash Equivalents, Beginning	31,881	39,703	37,432
Cash and Cash Equivalents, Ending	29,633	31,881	39,703
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net income	16,679	17,136	15,104
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net income of bank subsidiary	(14,080)	(8,682)	(7,162)
Equity in undistributed (net income) loss of non-bank subsidiaries	5,135	(1,275)	(1,163)
Net unrealized (gains) losses on trading securities	(47)	(54)	2
Decrease in other assets	112	47	39
Increase in other liabilities	384	384	334
Net Cash Provided By Operating Activities	8,183	7,556	7,154
Cash Flows from Investing Activities:
Purchase of securities	0	0	(100)
Net Cash Used In Investing Activities	0	0	(100)
Cash Flows From Financing Activities:
Dividends paid	(8,573)	(8,214)	(8,125)
Proceeds from sale of treasury stock and option exercises	739	951	1,447
Net advance to (repayment from) subsidiary	(600)	(200)	400
Net Cash Provided By (Used In) Financing Activities	(8,434)	(7,463)	(6,278)
Net increase (decrease) in cash	(251)	93	776
Cash and Cash Equivalents, Beginning	2,029	1,936	1,160
Cash and Cash Equivalents, Ending	$ 1,778	$ 2,029	$ 1,936

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Securities - Roll-Forward of Other-Than-Temporary Impairment Amount Related to Credit Losses (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Marketable Securities [Abstract]
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, beginning of period	$ 4,054	$ 4,054	$ 3,656
Additional credit loss for which other-than-temporary impairment was not previously recognized	0	0	0
Additional credit loss for which other-than-temporary impairment was previously recognized	0	0	398
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, end of period	$ 4,054	$ 4,054	$ 4,054

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Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

14.  Employee Benefit Plans

The Corporation sponsors a contributory defined contribution Section 401(k) plan in which substantially all employees participate. The plan permits employees to make pre-tax contributions which are matched by the Corporation at 100% for every 1% contributed up to three percent then 50% for every 1% contributed up to the next four percent in total of the employee’s compensation. The Corporation’s contributions were $431, $397, and $385 in 2013, 2012, and 2011, respectively. Profit sharing contributions to this plan, based on current year compensation, are 6 percent of total compensation plus 5.7 percent of the compensation in excess of $114. The Corporation recognized profit sharing expense of $855, $783, and $667 in 2013, 2012, and 2011 respectively.

The Corporation has adopted a non-qualified supplemental executive retirement plan (“SERP”) for certain executives to compensate those executive participants in the Corporation’s retirement plan whose benefits are limited by compensation limitations under current tax law. The SERP is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the SERP are payable from the general assets of the Corporation. At December 31, 2013 and 2012, obligations of $4,120 and $3,792, respectively, were included in other liabilities for this plan. Expenses related to this plan were $541 in 2013, $728 in 2012, and $647 in 2011.

The Corporation has established a Survivor Benefit Plan for the benefit of outside directors. The purpose of the plan is to provide life insurance benefits to beneficiaries of the Corporation’s directors who at the time of their death are participants in the plan. The plan is considered an unfunded plan for tax and ERISA purposes and all obligations arising under the plan are payable from the general assets of the Corporation. At December 31, 2013 and 2012, obligations of $932 and $813, respectively, were included in other liabilities for this plan. Expenses related to this plan were $119 in 2013, $127 in 2012, and $106 in 2011.

The Corporation has an unfunded post retirement benefits plan which provides certain health care benefits for retired employees who have reached the age of 60 and retired with 30 years of service. The plan was amended in 2013 to include only employees hired prior to January 1, 2000. Benefits are provided for these retired employees and their qualifying dependents from the age of 60 through the age of 65.

The following table sets forth the change in the benefit obligation of the plan as of and for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Benefit obligation at beginning of year	$	2,224		$	1,674		$	1,073
Interest cost		84			69			56
Service cost		125			88			49
Actual claims		(167	)		(184	)		(262	)
Plan amendment		(602	)		0			0
Actuarial loss		821			577			758
Benefit obligation at end of year	$	2,485		$	2,224		$	1,674

Amounts recognized in accumulated other comprehensive income at December 31, 2013 and 2012 consist of:

	2013			2012
Net actuarial loss	$	(1,667	)	$	(1,502	)
Transition obligation		0			(7	)
		(1,667	)		(1,509	)
Tax effect		583			528
	$	(1,084	)	$	(981	)

The accumulated benefit obligation was $2,485 and $2,224 at December 31, 2013 and 2012, respectively.

The following table sets forth the components of net periodic benefit cost and other amounts recognized in other comprehensive income:

	2013			2012			2011
Service cost	$	125		$	88		$	49
Interest cost		84			69			56
Net amortization of transition obligation and actuarial loss		61			41			11
Net periodic benefit cost		270			198			116
Net loss		821			578			758
Plan amendment		(602	)		0			0
Amortization of loss		(54	)		(34	)		(4	)
Amortization of transition obligation		(7	)		(7	)		(7	)
Total recognized in other comprehensive income		158			537			747
Total recognized in net periodic benefit cost and other comprehensive income	$	428		$	735		$	863

The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $149.

The weighted average discount rate used to calculate net periodic benefit cost was 3.88% in 2013, 4.29% in 2012, and 5.50% in 2011. The weighted average rate used to calculate accrued benefit obligations was 4.31% in 2013, 3.88% in 2012, and 4.29% in 2011. The health care cost trend rate used to measure the expected costs of benefits is 5.0% for 2014 and thereafter. A one percent increase in the health care trend rates would result in an increase of $241 in the benefit obligation as of December 31, 2013, and would increase the service and interest costs by $21 in future periods. A similar one percent decrease in health care trend rates would result in a decrease of $217 and $19 in the benefit obligation and services and interest costs, respectively, at December 31, 2013.

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Loans (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Schedule of Net Loans

Total net loans at December 31, 2013 and 2012 are summarized as follows:

	2013			2012
Commercial, industrial, and agricultural	$	291,704		$	257,091
Commercial mortgages		467,292			261,791
Residential real estate		471,298			347,904
Consumer		63,491			58,668
Credit cards		5,065			4,800
Overdrafts		409			971
Less: unearned discount		(3,896	)		(3,401	)
allowance for loan losses		(16,234	)		(14,060	)
Loans, net	$	1,279,129		$	913,764

Allowance for Loan Losses

Transactions in the allowance for loan losses for the year ended December 31, 2013 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2013	$	4,940		$	4,697		$	2,466		$	1,699		$	83		$	175		$	14,060
Charge-offs		(958	)		(1,931	)		(467	)		(1,919	)		(97	)		(258	)		(5,630	)
Recoveries		7			1,430			5			114			16			94			1,666
Provision for loan losses		2,290			1,273			876			1,439			64			196			6,138
Allowance for loan losses, December 31, 2013	$	6,279		$	5,469		$	2,880		$	1,333		$	66		$	207		$	16,234

Transactions in the allowance for loan losses for the year ended December 31, 2012 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2012	$	4,511		$	4,470		$	1,991		$	1,404		$	71		$	168		$	12,615
Charge-offs		(2,871	)		(401	)		(304	)		(1,279	)		(78	)		(257	)		(5,190	)
Recoveries		45			0			1			91			18			99			254
Provision for loan losses		3,255			628			778			1,483			72			165			6,381
Allowance for loan losses, December 31, 2012	$	4,940		$	4,697		$	2,466		$	1,699		$	83		$	175		$	14,060

Transactions in the allowance for loan losses for the year ended December 31, 2011 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2011	$	3,517		$	3,511		$	1,916		$	1,561		$	96		$	219		$	10,820
Charge-offs		(1,796	)		(175	)		(217	)		(907	)		(39	)		(222	)		(3,356	)
Recoveries		9			0			13			88			10			94			214
Provision for loan losses		2,781			1,134			279			662			4			77			4,937
Allowance for loan losses, December 31, 2011	$	4,511		$	4,470		$	1,991		$	1,404		$	71		$	168		$	12,615

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and is based on the Corporation’s impairment method as of December 31, 2013 and 2012. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

December 31, 2013	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	372	$	55	$	0	$	0	$	0	$	0	$	427
Collectively evaluated for impairment		5,907		3,959		2,880		1,333		66		207		14,352
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		0		1,455		0		0		0		0		1,455
Total ending allowance balance	$	6,279	$	5,469	$	2,880	$	1,333	$	66	$	207	$	16,234
Loans:
Individually evaluated for impairment	$	4,923	$	1,249	$	0	$	0	$	0	$	0	$	6,172
Collectively evaluated for impairment		285,518		452,945		471,298		63,491		5,065		409		1,278,726
Acquired with deteriorated credit quality		0		2,225		0		0		0		0		2,225
Modified in a troubled debt restructuring		1,263		10,873		0		0		0		0		12,136
Total ending loans balance	$	291,704	$	467,292	$	471,298	$	63,491	$	5,065	$	409	$	1,299,259

December 31, 2012	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	541	$	131	$	81	$	0	$	0	$	0	$	753
Collectively evaluated for impairment		4,399		3,467		2,385		1,699		83		175		12,208
Modified in a troubled debt restructuring		0		1,099		0		0		0		0		1,099
Total ending allowance balance	$	4,940	$	4,697	$	2,466	$	1,699	$	83	$	175	$	14,060
Loans:
Individually evaluated for impairment	$	2,623	$	10,683	$	593	$	0	$	0	$	0	$	13,899
Collectively evaluated for impairment		253,048		240,907		347,311		58,668		4,800		971		905,705
Modified in a troubled debt restructuring		1,420		10,201		0		0		0		0		11,621
Total ending loans balance	$	257,091	$	261,791	$	347,904	$	58,668	$	4,800	$	971	$	931,225

Loans Individually Evaluated for Impairment Including Loans Modified in Troubled Debt Restructurings by Portfolio Segment

The following tables present information related to loans individually evaluated for impairment, including loans modified in troubled debt restructurings, by portfolio segment as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012, and 2011:

December 31, 2013	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	5,402	$	4,152	$	372
Commercial mortgage		6,173		5,970		1,510
Residential real estate		0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural		2,055		2,034		0
Commercial mortgage		6,178		6,152		0
Residential real estate		0		0		0
Total	$	19,808	$	18,308	$	1,882

December 31, 2012	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	2,542	$	1,792	$	541
Commercial mortgage		5,870		5,329		1,230
Residential real estate		416		381		81
With no related allowance recorded:
Commercial, industrial, and agricultural		2,804		2,251		0
Commercial mortgage		17,285		15,555		0
Residential real estate		308		212		0
Total	$	29,225	$	25,520	$	1,852

Impaired Financing Receivables with Related and not Related Allowances

The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been charged off.

	Year Ended December 31, 2013
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,989	$	7	$	7
Commercial mortgage		6,572		3		3
Residential real estate		101		7		7
With no related allowance recorded:
Commercial, industrial, and agricultural		2,124		0		0
Commercial mortgage		11,885		0		0
Residential real estate		86		0		0
Total	$	22,757	$	17	$	17

	Year Ended December 31, 2012
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,083	$	4	$	4
Commercial mortgage		5,504		3		3
Residential real estate		334		13		13
With no related allowance recorded:
Commercial, industrial, and agricultural		3,217		0		0
Commercial mortgage		12,723		0		0
Residential real estate		103		0		0
Total	$	24,964	$	20	$	20

	Year Ended December 31, 2011
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,711	$	3	$	3
Commercial mortgage		6,412		19		19
Residential real estate		179		4		4
With no related allowance recorded:
Commercial, industrial, and agricultural		2,050		0		0
Commercial mortgage		6,040		0		0
Residential real estate		0		0		0
Total	$	18,392	$	26	$	26

Nonaccrual Loans and Loans Past Due over 90 Days Still Accruing Interest by Class of Loans

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of December 31, 2012 and 2011:

	December 31, 2013				December 31, 2012
	Nonaccrual		Past Due Over 90 Days Still on Accrual		Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	1,006	$	0	$	3,073	$	0
Commercial mortgages		7,236		0		8,570		109
Residential real estate		2,389		150		2,792		18
Consumer		942		170		10		217
Credit cards		0		24		0		13
Total	$	11,573	$	344	$	14,445	$	357

Aging of Recorded Investment in Past Due Loans

The following table presents the aging of the recorded investment in past due loans as of December 31, 2013 and 2012 by class of loans.

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	211	$	542	$	855	$	1,608	$	290,096	$	291,704
Commercial mortgages		1,258		713		7,236		9,207		458,085		467,292
Residential real estate		4,216		114		2,539		6,869		464,429		471,298
Consumer		334		1,049		1,112		2,495		60,996		63,491
Credit cards		0		29		24		53		5,012		5,065
Overdrafts		0		0		0		0		409		409
Total	$	6,019	$	2,447	$	11,766	$	20,232	$	1,279,027	$	1,299,259

December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	724	$	157	$	2,968	$	3,849	$	253,242	$	257,091
Commercial mortgages		1,162		3,197		8,679		13,038		248,753		261,791
Residential real estate		1,390		641		2,700		4,731		343,173		347,904
Consumer		724		203		227		1,154		57,514		58,668
Credit cards		39		9		13		61		4,739		4,800
Overdrafts		0		0		0		0		971		971
Total	$	4,039	$	4,207	$	14,587	$	22,833	$	908,392	$	931,225

Restructured in Troubled Debt

The following table presents the number of loans, loan balances, and specific reserves for loans that have been restructured in a troubled debt restructuring as of December 31, 2013 and December 31, 2012.

	December 31, 2013						December 31, 2012
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		2	$	1,263	$	0		2	$	1,420	$	0
Commercial mortgages		10		10,873		1,455		8		10,201		1,099
Residential real estate		0		0		0		0		0		0
Consumer		0		0		0		0		0		0
Credit cards		0		0		0		0		0		0
Total		12	$	12,136	$	1,455		10	$	11,621	$	1,099

Loans by Class Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2013 and 2012:

	Year Ended December 31, 2013
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding  Recorded Investment
Commercial, industrial, and agricultural		0	$	0	$	0
Commercial mortgages		3		3,747		3,681
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0
Total		3	$	3,747	$	3,681

	Year Ended December 31, 2012
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding  Recorded Investment
Commercial, industrial, and agricultural		2	$	1,455	$	1,455
Commercial mortgages		5		2,717		2,717
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0
Total		7	$	4,172	$	4,172

Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date

All loans included in the following tables have been assigned a risk rating within 12 months of the balance sheet date.

December 31, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	266,868	$	5,377	$	19,318	$	141	$	291,704
Commercial mortgages		404,876		16,755		44,936		725		467,292
Total	$	671,744	$	22,132	$	64,254	$	866	$	758,996

December 31, 2012	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	234,835	$	6,641	$	15,459	$	156	$	257,091
Commercial mortgages		225,294		12,294		23,501		702		261,791
Total	$	460,129	$	18,935	$	38,960	$	858	$	518,882

Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity

The following table presents the recorded investment in residential, consumer, and credit card loans based on payment activity as of December 31, 2013 and December 31, 2012:

	December 31, 2013						December 31, 2012
	Residential Real Estate		Consumer		Credit Cards		Residential Real Estate		Consumer		Credit Cards
Performing	$	468,759	$	62,379	$	5,041	$	345,094	$	58,441	$	4,787
Non-performing		2,539		1,112		24		2,810		227		13
Total	$	471,298	$	63,491	$	5,065	$	347,904	$	58,668	$	4,800

Summary of Holiday's Loan Portfolio Included in Consumer and Residential Loans

Holiday’s loan portfolio, included in consumer and residential loans above, is summarized as follows at December 31, 2013 and 2012:

	2013			2012
Consumer	$	24,891		$	21,535
Residential real estate		1,552			954
Less: unearned discount		(3,896	)		(3,401	)
Total	$	22,547		$	19,088

XML

Borrowings - Maturity Schedule of All Borrowed Funds (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Borrowings [Abstract]
2014	$ 13,159
2015	20,218
2016	227
2017	50,237
2018	246
Thereafter	24,483
Total borrowed funds	$ 108,570

XML

Fair Value - Quantitative Information About Level 3 Fair Value Measurements (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Corporate Notes and Bonds [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value		$ 1,980
Corporate Notes and Bonds [Member] | Constant Prepayment Rate [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input utilized one		0.00%
Corporate Notes and Bonds [Member] | Probability of Default [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input utilized one		0.00%
Corporate Notes and Bonds [Member] | Discount Rate [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input utilized one		9.60%
Pooled Trust Preferred [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 661	$ 600
Pooled Trust Preferred [Member] | Collateral Default Rate [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input utilized two	2% in 2014; 1.5% in 2015; 1.0% in 2016; 0.5% in 2017 and thereafter	2% annually for 2 years; 0.36% thereafter
Pooled Trust Preferred [Member] | Yield [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input utilized one	15.00%	13.00%
Pooled Trust Preferred [Member] | Recovery Probability [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input utilized two		10%, lagged 2 years
Pooled Trust Preferred [Member] | Prepayment Speed [Member] | Discounted Cash Flow [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Input utilized two	2.0% constant prepayment rate in 2014 and thereafter

XML

Stock-Based Compensation

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

16.  Stock-Based Compensation

Stock Options

A summary of the status of the stock options is presented below:

	Stock Options			Weighted-average Exercise Price
Outstanding at January 1, 2013		75,500		$	16.79
Exercised		(40,000	)		17.45
Outstanding at December 31, 2013		35,500		$	16.04
Options vested and exercisable at December 31, 2013		35,500
Fair value of options granted during 2013		N/A
Number of authorized stock-based awards available for grant		393,441

Options outstanding and exercisable at December 31, 2013 are as follows:

Exercise Price	Number		Remaining Contractual Life
$16.04		35,500		1.0 years

The aggregate intrinsic value of all options outstanding and exercisable at December 31, 2013 and 2012 was $105 and $13, respectively.

Additional information related to the stock option plan follows:

	2013		2012	2011
Intrinsic value of options exercised	$	99	$114	$	151
Cash received from option exercises		698	424		259

As of December 31, 2013, there was no unrecognized compensation cost related to nonvested stock options granted under the stock option plan.

Restricted Stock Awards

A summary of changes in nonvested restricted stock awards follows:

	Shares			Weighted-average Grant Date Fair Value
Nonvested at January 1, 2013		49,574			$15.37
Granted		31,500			17.10
Forfeited		(525	)		16.44
Vested		(18,473	)		15.33
Nonvested at December 31, 2013		62,076			$16.25

As of December 31, 2013 and 2012, there was $675 and $536, respectively, of total unrecognized compensation cost related to nonvested shares granted under the restricted stock award plan. The fair value of shares vesting during 2013, 2012, and 2011 was $323, $206 and $173, respectively. Compensation expense for restricted stock awards was $390 in 2013, $277 in 2012, and $213 in 201.

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Loans - Schedule of Net Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Receivables [Abstract]
Commercial, industrial, and agricultural	$ 291,704	$ 257,091
Commercial mortgages	467,292	261,791
Residential real estate	471,298	347,904
Consumer	63,491	58,668
Credit cards	5,065	4,800
Overdrafts	409	971
Less: unearned discount	(3,896)	(3,401)
Less: allowance for loan losses	(16,234)	(14,060)
Net loans	$ 1,279,129	$ 913,764

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Employee Benefit Plans - Recognized Net Periodic Benefit Cost and Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Compensation And Retirement Disclosure [Abstract]
Service cost	$ 125	$ 88	$ 49
Interest cost	84	69	56
Net amortization of transition obligation and actuarial loss	61	41	11
Net periodic benefit cost	270	198	116
Net loss	821	578	758
Plan amendment	(602)	0	0
Amortization of loss	(54)	(34)	(4)
Transition obligation	(7)	(7)	(7)
Total recognized in other comprehensive income	158	537	747
Total recognized in net periodic benefit cost and other comprehensive income	$ 428	$ 735	$ 863

XML

Consolidated Statements of Changes in Shareholders' Equity (USD $) In Thousands	Total	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance at Dec. 31, 2010	$ 109,645	$ 44,676	$ 73,059	$ (5,417)	$ (2,673)
Net income	15,104		15,104
Other comprehensive income (loss)	13,434				13,434
Restricted stock award grants		(266)		266
Forfeiture of restricted stock award grants		22		(22)
Exercise of stock options, including tax benefit	310	(133)		443
Stock based compensation expense	213	213
Reissue of treasury stock	1,308	(162)		1,470
Cash dividends declared ($0.66 per share)	(8,125)		(8,125)
Ending balance at Dec. 31, 2011	131,889	44,350	80,038	(3,260)	10,761
Net income	17,136		17,136
Other comprehensive income (loss)	3,163				3,163
Restricted stock award grants		(419)		419
Exercise of stock options, including tax benefit	464	(27)		491
Stock based compensation expense	277	277
Reissue of treasury stock	649	42		607
Cash dividends declared ($0.66 per share)	(8,214)		(8,214)
Ending balance at Dec. 31, 2012	145,364	44,223	88,960	(1,743)	13,924
Net income	16,679		16,679
Other comprehensive income (loss)	(23,369)				(23,369)
Common stock issued in acquisition	33,561	33,561
Restricted stock award grants		(471)		471
Exercise of stock options, including tax benefit	733	182		551
Stock based compensation expense	390	390
Reissue of treasury stock	126	38		88
Cash dividends declared ($0.66 per share)	(8,573)		(8,573)
Ending balance at Dec. 31, 2013	$ 164,911	$ 77,923	$ 97,066	$ (633)	$ (9,445)

XML

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	14,473,482	12,599,603
Treasury stock, shares	45,702	123,699

XML

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

9.  Goodwill and Intangible Assets

Goodwill

The change in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 is as follows:

	2013		2012
Balance, beginning of year	$	10,946	$	10,821
Acquired during the year		16,248		125
Balance, end of year	$	27,194	$	10,946

The goodwill acquired in 2013 is attributable to the business combination associated with the Corporation’s acquisition of FC Banc Corp. (Note 2).

In 2012, the Corporation purchased the loans and other assets of a consumer discount company in Ebensburg, Pennsylvania. The purchase price was $1,248 for the performing loans and customers of the business. The purchase price resulted in the Corporation recording goodwill of $125 in connection with the acquisition. Due to the insignificance of the assets acquired in relation to the consolidated financial statements as a whole, no further business combination or intangible asset disclosures are included in the notes to consolidated financial statements.

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 includes the determination of the carrying value of our single reporting unit, including the existing goodwill and intangible assets, and estimating the fair value of the reporting unit. We determined the fair value of our reporting unit exceeded its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, we are required to perform a second step to the impairment test. Our annual impairment analysis at December 31, 2013 and 2012 indicated that the Step 2 analysis was not necessary.

Intangible Assets

In connection with its acquisition of FC Banc Corp. in 2013, the Corporation recorded a core deposit intangible asset of $4,834 and amortization expense of $251, resulting in a net carrying value of $4,583 at December 31, 2013. No other intangible assets were required to be recorded in connection with the acquisition.

Estimated amortization expense for each of the next five years is as follows:

2014	$	1,180
2015		1,007
2016		835
2017		662
2018		489

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Income Taxes - Reconciliation of Income Tax Attributable to Pre-Tax Income at Federal Statutory Tax Rates to Income Tax Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Tax at statutory rate, value	$ 8,057	$ 8,241	$ 7,222
Tax exempt income, net value	(1,664)	(1,553)	(1,353)
Bank owned life insurance, value	(543)	(341)	(325)
Merger costs, value	233	0	0
Other, value	257	64	(15)
Income tax expense	$ 6,340	$ 6,411	$ 5,529
Tax at statutory rate, percent	35.00%	35.00%	35.00%
Tax exempt income, net percent	(7.20%)	(6.60%)	(6.60%)
Bank owned life insurance, percent	(2.40%)	(1.40%)	(1.60%)
Merger costs, percent	1.00%	0.00%	0.00%
Other, percent	1.10%	0.20%	0.00%
Income tax expense, percent	27.50%	27.20%	26.80%

XML

Deposits - Summary of Time Certificates of Deposit Accounts Included in Total Deposits and Their Remaining Maturities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Deposits [Abstract]
2014	$ 122,126
2015	43,106
2016	40,874
2017	20,608
2018	27,043
Thereafter	12,005
Total	$ 265,762

XML

Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended			0 Months Ended	12 Months Ended		12 Months Ended
	Dec. 31, 2013 Unit	Dec. 31, 2012	Dec. 31, 2011	Oct. 11, 2013 Farmers Citizens Bank [Member]	Dec. 31, 2013 Farmers Citizens Bank [Member]	Dec. 31, 2012 Farmers Citizens Bank [Member]	Dec. 31, 2013 Core Deposit [Member]
Goodwill [Line Items]
Purchase price for performing loan		$ 1,248		$ 41,600	$ 41,574
Goodwill recorded in connection with acquisition	27,194	10,946	10,821		16,248	125
Number of reporting unit	1
Intangible asset							4,834
Amortization expense							251
Net carrying value							$ 4,583

XML

Fair Value - Securities Available for Sale Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Corporate Notes and Bonds [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 1,980	$ 2,060
Total gains or (losses):
Included in other comprehensive income (loss) (unrealized)	(29)	(80)
Included in realized gains on available-for-sale securities	58
Sale of available-for-sale securities	(2,009)
Ending Balance	0	1,980
Pooled Trust Preferred [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	600	340
Total gains or (losses):
Included in other comprehensive income (loss) (unrealized)	61	260
Included in realized gains on available-for-sale securities	0
Sale of available-for-sale securities	0
Ending Balance	$ 661	$ 600

XML

Other Comprehensive Income - Components of Other Comprehensive Income and Related Tax Effects (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Equity [Abstract]
Unrealized holding gains (losses) on available for sale securities	$ (36,130)	$ 6,597	$ 22,457
Less reclassification adjustment for gains recognized in earnings	(355)	(1,379)	(614)
Net unrealized gains	(36,485)	5,218	21,843
Tax effect	12,770	(1,826)	(7,642)
Net-of-tax amount	(23,715)	3,392	14,201
Unrealized holding gains (losses) on available for sale securities for which a portion of an other-than-temporary impairment has been recognized in earnings	61	260	(28)
Less reclassification adjustment for impairment loss recognized in earnings	0	0	398
Net unrealized gains	61	260	370
Tax effect	(21)	(91)	(130)
Net-of-tax amount	40	169	240
Actuarial loss on postemployment health care plan	(219)	(578)	(757)
Net amortization of transition obligation and actuarial gain	61	41	11
Net unrealized loss on postemployment health care plan	(158)	(537)	(746)
Tax effect	55	188	261
Net-of-tax amount	(103)	(349)	(485)
Unrealized loss on interest rate swap	229	(465)	(1,205)
Less reclassification adjustment for losses recognized in earnings	400	390	402
Net unrealized gain (loss)	629	(75)	(803)
Tax effect	(220)	26	281
Net-of-tax amount	409	(49)	(522)
Total other comprehensive income (loss)	$ (23,369)	$ 3,163	$ 13,434

XML

Off Balance Sheet Activities - Schedule of Off-Balance Sheet Risks (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Commitments to Make Loans [Member] | Fixed Rate [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Off-balance sheet risks, amount, liability	$ 54,556	$ 13,670
Commitments to Make Loans [Member] | Variable Rate [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Off-balance sheet risks, amount, liability	155,391	171,862
Unused Lines of Credit [Member] | Fixed Rate [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Off-balance sheet risks, amount, liability	0	0
Unused Lines of Credit [Member] | Variable Rate [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Off-balance sheet risks, amount, liability	78,937	69,621
Standby Letters of Credit [Member] | Fixed Rate [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Off-balance sheet risks, amount, liability	0	0
Standby Letters of Credit [Member] | Variable Rate [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Off-balance sheet risks, amount, liability	$ 13,520	$ 22,598

XML

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Mar. 03, 2014	Jun. 30, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	CNB FINANCIAL CORP/PA
Entity Central Index Key	0000736772
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,464,041
Entity Public Float			$ 198,933,179

XML

Fair Value - Sale Securities Reported as Level 1 Securities as of Beginning of Period were Transferred to Level 2 Category (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Securities transferred to level 2 fair value	$ 15,232
U.S. Government Sponsored Entities [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Securities transferred to level 2 fair value	2,000
States and Political Subdivisions [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Securities transferred to level 2 fair value	4,655
Residential and Multi-Family Mortgage [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Securities transferred to level 2 fair value	$ 8,577

XML

Deposits

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Deposits

10.  Deposits

The following table reflects time certificates of deposit accounts included in total deposits and their remaining maturities at December 31, 2013:

Time deposits maturing:
2014	$	122,126
2015		43,106
2016		40,874
2017		20,608
2018		27,043
Thereafter		12,005
	$	265,762

Certificates of deposit of $100 thousand or more totaled $126,924 and $87,018 at December 31, 2013 and 2012, respectively.

XML

Loans - Summary of Holiday's Loan Portfolio Included in Consumer and Residential Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer	$ 63,491	$ 58,668
Residential real estate	471,298	347,904
Less: unearned discount	(3,896)	(3,401)
Holiday Financial Services Corporation [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Consumer	24,891	21,535
Residential real estate	1,552	954
Less: unearned discount	(3,896)	(3,401)
Total	$ 22,547	$ 19,088

XML

Goodwill and Intangible Assets - Summary of Change in the Carrying Amount of Goodwill (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Balance, beginning of year	$ 10,946	$ 10,821
Acquired during the year	16,248	125
Balance, end of year	$ 27,194	$ 10,946

XML

Consolidated Statements of Income and Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Interest and Dividend Income:
Loans including fees	$ 53,927	$ 49,760	$ 48,324
Securities:
Taxable	13,456	14,688	14,395
Tax-exempt	3,828	3,595	2,957
Dividends	205	86	36
Total interest and dividend income	71,416	68,129	65,712
Interest Expense:
Deposits	7,995	10,875	13,625
Borrowed funds	3,447	3,245	3,176
Subordinated debentures (includes $400, $390, and $402 accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements in 2013, 2012, and 2011)	770	800	778
Total interest expense	12,212	14,920	17,579
Net Interest Income	59,204	53,209	48,133
Provision for loan losses	6,138	6,381	4,937
Net Interest Income After Provision for Loan Losses	53,066	46,828	43,196
Non-Interest Income:
Wealth and asset management fees	2,426	1,819	1,691
Service charges on deposit accounts	4,272	4,106	4,233
Other service charges and fees	2,179	1,868	1,626
Net realized gains on trading securities	579	298	30
Net unrealized gains on trading securities	149	266	34
Mortgage banking	940	990	735
Bank owned life insurance	1,552	973	930
Other	1,314	965	1,224
Total Fees and Commissions	13,411	11,285	10,503
Total other-than-temporary impairment losses on available-for-sale securities	0	0	(398)
Less portion of loss recognized in other comprehensive income	0	0	0
Net impairment losses recognized in earnings	0	0	(398)
Net realized gains on available-for-sale securities (includes $355, $1,379, and $614 accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities in 2013, 2012, and 2011)	355	1,379	614
Net impairment losses recognized in earnings and realized gains on available-for-sale securities	355	1,379	216
Total non-interest income	13,766	12,664	10,719
Non-Interest Expenses:
Salaries	15,467	13,106	12,349
Employee benefits	6,250	5,787	4,936
Net occupancy expense	5,506	4,651	4,416
Amortization of core deposit intangible	251	0	0
Data processing	3,469	2,791	2,754
State and local taxes	1,549	1,474	1,275
Legal, professional and examination fees	1,318	1,265	956
Advertising	939	859	822
FDIC insurance	1,266	1,115	1,259
Directors fees and benefits	776	666	591
Merger costs	2,396	0	0
Other	4,626	4,231	3,924
Total non-interest expenses	43,813	35,945	33,282
Income Before Income Taxes	23,019	23,547	20,633
Income Tax Expense (includes ($16), $346, and $74 income tax expense reclassification items in 2013, 2012, and 2011)	6,340	6,411	5,529
Net Income	16,679	17,136	15,104
Other Comprehensive Income (Loss):
Net change in unrealized gains/losses on available-for-sale securities, net of reclassification and tax	(23,675)	3,561	14,441
Change in actuarial gain, net of amortization and tax, for post-employment health care plan, net of tax	(103)	(349)	(485)
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of tax	409	(49)	(522)
Total other comprehensive income (loss)	(23,369)	3,163	13,434
Comprehensive Income (Loss)	$ (6,690)	$ 20,299	$ 28,538
Earnings Per Share:
Basic	$ 1.29	$ 1.38	$ 1.23
Diluted	$ 1.29	$ 1.38	$ 1.23

XML

Securities

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Securities

4.  Securities

Securities available-for-sale at December 31, 2013 and 2012 are as follows:

	December 31, 2013								December 31, 2012
	Amortized Cost		Unrealized				Fair Value		Amortized Cost		Unrealized					Fair Value
			Gains		Losses						Gains		Losses
U.S. Treasury		$          0		$       0		$        0		$        0		$    4,018		$      18	$	0			$4,036
U.S. Gov’t sponsored entities		185,205		2,894		(6,474)		181,625		157,965		5,977		(161	)		163,781
State & political subdivisions		176,490		3,770		(2,317)		177,943		170,223		11,113		(57	)		181,279
Residential & multi-family mortgage		248,017		2,410		(7,820)		242,607		308,800		8,724		(702	)		316,822
Commercial mortgage		385		0		(11)		374		1,275		29		0			1,304
Corporate notes & bonds		15,744		65		(1,734)		14,075		17,368		26		(2,370	)		15,024
Pooled trust preferred		800		0		(139)		661		800		0		(200	)		600
Pooled SBA		70,077		688		(3,044)		67,721		50,667		2,277		(17	)		52,927
Other securities		1,020		0		(35)		985		1,521		17		0			1,538
Total		$697,738		$9,827		$(21,574)		$685,991		$712,637		$28,181		$(3,507)			$737,311

At December 31, 2013 and 2012, there were no holdings of securities by any one issuer, other than U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity. The Corporation’s residential and multi-family mortgage securities are issued by government sponsored entities, and the Corporation holds one commercial mortgage security that is private label.

Trading securities at December 31, 2013 and 2012 are as follows:

	2013		2012
Corporate equity securities	$	2,705	$	3,117
Certificates of deposit		253		408
International mutual funds		259		287
Large cap growth mutual funds		197		157
Money market mutual funds		124		110
Large cap value mutual funds		129		104
Corporate notes and bonds		152		101
Real estate investment trust mutual funds		39		65
U.S. Government sponsored entities		52		58
Small cap mutual funds		83		26
Mid cap mutual funds		84		26
Commodities mutual funds		50		0
Total	$	4,127	$	4,459

Securities with unrealized losses at December 31, 2013 and 2012, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

December 31, 2013	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury	$	0	$	0		$	0	$	0		$	0	$	0
U.S. Gov’t sponsored entities		95,677		(5,394	)		17,964		(1,080	)		113,641		(6,474	)
State & political subdivisions		57,526		(2,192	)		5,324		(125	)		62,850		(2,317	)
Residential & multi-family mortgage		150,229		(6,806	)		16,608		(1,014	)		166,837		(7,820	)
Commercial mortgage		374		(11	)		0		0			374		(11	)
Corporate notes & bonds		0		0			9,662		(1,734	)		9,662		(1,734	)
Pooled trust preferred		0		0			661		(139	)		661		(139	)
Pooled SBA		36,842		(2,296	)		8,277		(748	)		45,119		(3,044	)
Other securities		985		(35	)		0		0			985		(35	)
	$	341,633	$	(16,734	)	$	58,496	$	(4,840	)	$	400,129	$	(21,574	)
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
December 31, 2012
U.S. Treasury	$	0	$	0		$	0	$	0		$	0	$	0
U.S. Gov’t sponsored entities		41,715		(161	)		0		0			41,715		(161	)
State & political subdivisions		7,857		(57	)		0		0			7,857		(57	)
Residential and multi-family mortgage		32,159		(688	)		4,254		(14	)		36,413		(702	)
Commercial mortgage		0		0			0		0			0		0
Corporate notes & bonds		0		0			13,002		(2,370	)		13,002		(2,370	)
Pooled trust preferred		0		0			600		(200	)		600		(200	)
Pooled SBA		3,521		(17	)		0		0			3,521		(17	)
Other securities		0		0			0		0			0		0
	$	85,252	$	(923	)	$	17,856	$	(2,584	)	$	103,108	$	(3,507	)

The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation.

The following table provides detailed information related to the Corporation’s structured pooled trust preferred securities as of December 31, 2013 and for the years ended December 31, 2013, 2012, and 2011:

	As of December 31, 2013							Credit Losses Realized in Earnings
	Adjusted Amortized		Unrealized			Fair		Year Ended December 31,
	Cost		Gain (Loss)			Value		2013		2012		2011
ALESCO Preferred Funding V, Ltd.	$	800	$	(139	)	$	661	$	0	$	0	$	0
ALESCO Preferred Funding XII, Ltd.		0		0			0		0		0		280
ALESCO Preferred Funding XVII, Ltd.		0		0			0		0		0		0
Preferred Term Securities XVI, Ltd.		0		0			0		0		0		118
US Capital Funding VI, Ltd.		0		0			0		0		0		0
Total	$	800	$	(139	)	$	661	$	0	$	0	$	398

At December 31, 2013, the Corporation evaluated the ALESCO Preferred Funding V, Ltd. Security for other than-temporary impairment by estimating the cash flows expected to be received, taking into account future estimated levels of deferrals and defaults by the underlying issuers and discounting those cash flows at the appropriate accounting yield.

A roll-forward of the other-than-temporary impairment amount related to credit losses for the years ended December 31, 2013, 2012 and 2011 is as follows:

	2013		2012		2011
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, beginning of period	$	4,054	$	4,054	$	3,656
Additional credit loss for which other-than-temporary impairment was not previously recognized		0		0		0
Additional credit loss for which other-than-temporary impairment was previously recognized		0		0		398
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, end of period	$	4,054	$	4,054	$	4,054

Due to the insignificance of the adjusted amortized cost of structured pooled trust preferred securities as of December 31, 2013 and 2012, no further disclosures are required.

For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management monitors information from quarterly “call” report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed, as appropriate given the following considerations. When reviewing securities for other-than-temporary impairment, management considers the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred. Management also considers the length of time and extent to which fair value has been less than cost, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

As of December 31, 2013 and 2012, management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons:

— There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.

— All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.

The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis.

On December 31, 2013 and 2012, securities carried at $353,102 and $264,813, respectively, were pledged to secure public deposits and for other purposes as provided by law.

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at December 31, 2013:

	December 31, 2013
	Amortized Cost		Fair Value
1 year or less	$	31,192	$	30,902
1 year – 5 years		141,228		141,410
5 years – 10 years		165,713		163,735
After 10 years		40,106		38,257
		378,239		374,304
Residential and multi-family mortgage		248,017		242,607
Pooled SBA		70,077		67,721
Commercial mortgage		385		374
Total debt securities	$	696,718	$	685,006

Mortgage securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral.

Information pertaining to security sales is as follows:

Year ended December 31	Proceeds		Gross Gains		Gross Losses
2013	$	35,633	$	849	$	494
2012		125,579		1,809		430
2011		69,740		878		264

The tax provision related to these net realized gains was $124, $483, and $215, respectively.

During 2013, 2012 and 2011, the Corporation sold trading securities. Proceeds were $5,811 in 2013, $3,386 in 2012, and $343 in 2011, resulting in net gains of $579 in 2013, $298 in 2012, and $30 in 2011.

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Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

3.  Earnings Per Share

The computation of basic and diluted earnings per share is shown below (in thousands, except per share data). For the years ended December 31, 2012, and 2011, options to purchase 37,500 and 75,500 shares of common stock were not considered in computing diluted earnings per share because they were anti-dilutive. There were no anti-dilutive stock options for the year ended December 31, 2013.

	Years Ended December 31
	2013			2012			2011
Basic earnings per common share computation
Net income per consolidated statements of income	$	16,679		$	17,136		$	15,104
Net earnings allocated to participating securities		(73	)		(62	)		(42	)
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Distributed earnings allocated to common stock	$	8,532		$	8,182		$	8,101
Undistributed earnings allocated to common stock		8,074			8,892			6,961
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Weighted average common shares outstanding, including shares considered participating securities		12,929			12,441			12,306
Less: Average participating securities		(50	)		(41	)		(33	)
Weighted average shares		12,879			12,400			12,273
Basic earnings per common share	$	1.29		$	1.38		$	1.23
Diluted earnings per common share computation
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Weighted average common shares outstanding for basic earnings per common share		12,879			12,400			12,273
Add: Dilutive effects of assumed exercises of stock options		2			3			6
Weighted average shares and dilutive potential common shares		12,881			12,403			12,279
Diluted earnings per common share	$	1.29		$	1.38		$	1.23

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Deferred Compensation Plans

12 Months Ended

Dec. 31, 2013

Postemployment Benefits [Abstract]

Deferred Compensation Plans

15.  Deferred Compensation Plans

Deferred compensation plans cover all directors and certain officers. Under the plans, the Corporation pays each participant, or their beneficiary, the value of the participant’s account over a maximum period of 10 years, beginning with the individual’s termination of service. A liability is accrued for the obligation under these plans.

A summary of changes in the deferred compensation plan liability follows:

	2013			2012			2011
Balance, beginning of year	$	990		$	987		$	1,038
Deferrals, dividends, and changes in fair value recorded as an expense		191			84			80
Deferred compensation payments		(81	)		(81	)		(131	)
Balance, end of year	$	1,100		$	990		$	987

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Borrowings

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Borrowings

11.  Borrowings

At December 31, 2013, the Corporation had available one $10 million line of credit with an unaffiliated institution, at a variable interest rate with a floor as defined in the agreement. At December 31, 2012, the Corporation had available one $9 million line of credit with an unaffiliated institution, which was not renewed in 2013. There were no borrowings on either line of credit at December 31, 2013 and 2012.

FHLB Borrowings

At December 31, 2013, the Bank had remaining borrowing capacity with the FHLB of $348,574. At December 31, 2013, borrowings with the FHLB are secured by a pledge of selected securities in the amount of $75,885 and certain loans with a balance of $469,822 at December 31, 2013. Borrowings from the FHLB at December 31, 2013 and 2012 are as follows:

Interest Rate	Maturity		2013		2012
(a)		09/17/15	$	20,000	$	20,000
(b)		06/01/17		10,000		10,000
(c)		08/07/17		5,000		5,000
(d)		08/07/17		5,000		5,000
(e)		08/07/17		10,000		10,000
(f)		10/10/17		10,000		10,000
(g)		07/07/23		700		700
(h)		09/05/23		2,280		2,388
(i)		06/11/24		535		557
(j)		05/24/26		302		321
(k)		10/14/26		311		330
(l)		02/11/33		872		0
			$	65,000	$	64,296

(a), (g) – Fixed rate borrowings at interest rates of 2.09% and 4.72%, respectively.

(b) – Interest rate was fixed at 4.60% until June 2009, since which time FHLB has had the option to convert to floating interest rate based on the 3 month LIBOR + 0.16%. The interest rate was 4.60% at December 31, 2013 and 2012.

(c) – Interest rate was fixed at 4.02% until February 2008, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.02% at December 31, 2013 and 2012.

(d) – Interest rate was fixed at 4.10% until August 2008, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.10% at December 31, 2013 and 2012.

(e) – Interest rate is fixed at 4.47% until August 2010, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.11%. The interest rate was 4.47% at December 31, 2013 and 2012.

(f) – Interest rate was fixed at 3.97% until October 2009, since which time FHLB has had the option to convert to a floating interest rate based on the 3 month LIBOR + 0.10%. The interest rate was 3.97% at December 31, 2013 and 2012.

(h) – Fixed rate borrowing at an interest rate of 4.31%, with monthly principal and interest payments and a balloon payment due at maturity.

(i) – Fixed rate borrowing at an interest rate of 5.24%, with monthly principal and interest payments and a balloon payment due at maturity.

(j) – Fixed rate borrowing at an interest rate of 3.35%, with monthly principal and interest payments.

(k) – Fixed rate borrowing at an interest rate of 4.00%, with monthly principal and interest payments.

(l) – Fixed rate borrowing at an interest rate of 3.23%, with monthly principal and interest payments.

The terms of borrowings (a) through (g) are interest only payments with principal due at maturity.

Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances.

Other Borrowings

At December 31, 2013 and 2012, the Bank had outstanding borrowings of $12,950 and $23,510 from one unaffiliated institution under an overnight borrowing agreement. The interest rate on this borrowing was 0.35%.

The Bank entered into a borrowing transaction with an unaffiliated institution in March 2007. The proceeds of this borrowing were $10,000 and, as part of this transaction, the Bank pledged certain securities which had a carrying amount of $12,222 at December 31, 2013. The borrowing has a maturity date of March 20, 2017 and a variable interest rate of 3 month LIBOR minus 1.0% through March 20, 2008, at which time the interest rate became fixed as defined. The borrowing is callable by the issuer at the end of each quarter until maturity. The interest rate was 5.25% at December 31, 2013 and 2012.

Subordinated Debentures

In 2007, the Corporation issued two $10,000 floating rate trust preferred securities as part of a pooled offering of such securities. The interest rate on each offering is determined quarterly and floats based on the 3 month LIBOR plus 1.55% and was 1.79% and 1.86% at December 31, 2013 and 2012, respectively. The Corporation issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The subordinated debentures must be redeemed no later than 2037. The Corporation may redeem the debentures, in whole or in part, at face value at any time. The Corporation has the option to defer interest payments from time to time for a period not to exceed five consecutive years.

Although the trusts are variable interest entities, the Corporation is not the primary beneficiary. As a result, because the trusts are not consolidated with the Corporation, the Corporation does not report the securities issued by the trusts as liabilities. Instead, the Corporation reports as liabilities the subordinated debentures issued by the Corporation and held by the trusts, since the liabilities are not eliminated in consolidation.

Maturity Schedule of All Borrowed Funds

The following is a schedule of maturities of all borrowed funds as of December 31, 2013:

2014	$	13,159
2015		20,218
2016		227
2017		50,237
2018		246
Thereafter		24,483
Total borrowed funds	$	108,570

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Premises and Equipment - Summary of Premises and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 57,348	$ 47,726
Less: accumulated depreciation	25,759	23,654
Premises and equipment, net	31,589	24,072
Land [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	4,412	4,126
Premises and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	28,764	25,670
Furniture, Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	20,248	17,522
Construction in Process [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 3,924	$ 408

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Premises and Equipment

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Premises and Equipment

7.   Premises and Equipment

The following summarizes premises and equipment at December 31, 2013 and 2012:

	2013		2012
Land	$	4,412	$	4,126
Premises and leasehold improvements		28,764		25,670
Furniture and equipment		20,248		17,522
Construction in process		3,924		408
		57,348		47,726
Less: accumulated depreciation		25,759		23,654
Premises and equipment, net	$	31,589	$	24,072

Depreciation on premises and equipment amounted to $2,147 in 2013, $1,948 in 2012, and $1,823 in 2011.

In 2013, the Corporation entered into a contractual commitment to expand its main office facility in Clearfield, Pennsylvania at a cost of $4,128. Construction has commenced with $3,112 in construction-related expenditures incurred as of December 31, 2013. The project is expected to be completed early in the second quarter of 2014.

The Corporation is committed under twenty noncancelable operating leases for facilities and four noncancelable operating leases for vehicles with initial or remaining terms in excess of one year. The minimum annual rental commitments under these leases at December 31, 2013 are as follows:

2014	$	630
2015		617
2016		592
2017		426
2018		207
Thereafter		1,169
	$	3,641

Rental expense, net of rental income, charged to occupancy expense for 2013, 2012, and 2011 was $490, $351, and $349, respectively.

In December 2009, the Corporation entered into a sale-leaseback transaction for real estate used in the operations of one of its branch office locations. The lease term is seventeen years, with two automatic renewal terms of five years each. The Corporation sold the property for $1,200 but financed the entire sales amount. Because the buyer/lessor did not make an initial investment on the purchase of the real estate that is adequate to transfer the risks and rewards of ownership, the Corporation deferred the entire gain of $489 associated with this transaction, which is included in accrued interest payable and other liabilities in the accompanying consolidated balance sheet. The gain is being recognized over the term of the loan under the installment method, and the gain recognized was included in other income in the accompanying consolidated statements of income and comprehensive income and totaled $17, $19, and $16 in 2013, 2012, and 2011, respectively.

The minimum annual rental commitments under this lease at December 31, 2013 are as follows:

2014	$	112
2015		112
2016		112
2017		112
2018		112
Thereafter		893
	$	1,453

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Securities - Securities Available for Sale (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 697,738	$ 712,637
Unrealized Gains	9,827	28,181
Unrealized Losses	(21,574)	(3,507)
Fair Value	685,991	737,311
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	0	4,018
Unrealized Gains	0	18
Unrealized Losses	0	0
Fair Value	0	4,036
U.S. Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	185,205	157,965
Unrealized Gains	2,894	5,977
Unrealized Losses	(6,474)	(161)
Fair Value	181,625	163,781
States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	176,490	170,223
Unrealized Gains	3,770	11,113
Unrealized Losses	(2,317)	(57)
Fair Value	177,943	181,279
Residential and Multi-Family Mortgage [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	248,017	308,800
Unrealized Gains	2,410	8,724
Unrealized Losses	(7,820)	(702)
Fair Value	242,607	316,822
Commercial Mortgage [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	385	1,275
Unrealized Gains	0	29
Unrealized Losses	(11)	0
Fair Value	374	1,304
Corporate Notes and Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	15,744	17,368
Unrealized Gains	65	26
Unrealized Losses	(1,734)	(2,370)
Fair Value	14,075	15,024
Pooled Trust Preferred [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	800	800
Unrealized Gains	0	0
Unrealized Losses	(139)	(200)
Fair Value	661	600
Pooled SBA [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	70,077	50,667
Unrealized Gains	688	2,277
Unrealized Losses	(3,044)	(17)
Fair Value	67,721	52,927
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,020	1,521
Unrealized Gains	0	17
Unrealized Losses	(35)	0
Fair Value	$ 985	$ 1,538

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Deferred Compensation Plans - Summary of Changes in Deferred Compensation Plan Liability (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Postemployment Benefits [Abstract]
Balance, beginning of year	$ 990	$ 987	$ 1,038
Deferrals, dividends, and changes in fair value recorded as an expense	191	84	80
Deferred compensation payments	(81)	(81)	(131)
Balance, end of year	$ 1,100	$ 990	$ 987

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Loans

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Loans

5.   Loans

Total net loans at December 31, 2013 and 2012 are summarized as follows:

	2013			2012
Commercial, industrial, and agricultural	$	291,704		$	257,091
Commercial mortgages		467,292			261,791
Residential real estate		471,298			347,904
Consumer		63,491			58,668
Credit cards		5,065			4,800
Overdrafts		409			971
Less: unearned discount		(3,896	)		(3,401	)
allowance for loan losses		(16,234	)		(14,060	)
Loans, net	$	1,279,129		$	913,764

At December 31, 2013 and 2012 net unamortized loan costs of $911 and $232, respectively, have been included in the carrying value of loans.

The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within Central and Western Pennsylvania and Central Ohio. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers, and by entering into participation agreements with third parties. Collateral requirements are established based on management’s assessment of the customer. The Corporation maintains lending policies to control the quality of the loan portfolio. These policies delegate the authority to extend loans under specific guidelines and underwriting standards. These policies are prepared by the Corporation’s management and reviewed and ratified annually by the Corporation’s Board of Directors.

All relevant documentation, such as the loan application, financial statements and tax returns, required under the lending policies is summarized and provided to management and/or the Corporation’s Board of Directors in connection with the loan approval process. Such documentation is subsequently electronically archived in the Corporation’s document management system. Pursuant to the Corporation’s lending policies, management considers a variety of factors when determining whether to extend credit to a customer, including loan-to-value ratios, FICO scores, quality of the borrower’s financial statements, and the ability to obtain personal guarantees.

Commercial, industrial, and agricultural loans comprised 23% and 28% of the Corporation’s total loan portfolio at December 31, 2013 and 2012, respectively. Commercial mortgage loans comprised 37% and 29% of the Corporation’s total loan portfolio at December 31, 2013 and 2012, respectively. Management assigns a risk rating to all commercial loans in excess of $250,000. The loan-to-value policy guidelines for commercial, industrial, and agricultural loans are generally a maximum of 80% of the value of business equipment, a maximum of 75% of the value of accounts receivable, and a maximum of 60% of the value of business inventory. The loan-to-value policy guideline for commercial mortgage loans is generally a maximum of 85% of the appraised value of the real estate.

Residential real estate loans comprised 37% and 38% of the Corporation’s total loan portfolio at December 31, 2013 and 2012, respectively. The loan-to-value policy guidelines for residential real estate loans vary depending on the collateral position and the specific type of loan. Higher loan-to-value terms may be approved with the appropriate private mortgage insurance coverage. The Corporation also originates and prices loans for sale into the secondary market through Freddie Mac. Loans so originated are classified as loans held for sale and are excluded from residential real estate loans reported above. The rationale for these sales is to mitigate interest rate risk associated with holding lower rate, long-term residential mortgages in the loan portfolio and to generate fee revenue from sales and servicing the loan. The Corporation also offers a variety of unsecured and secured consumer loan and credit card products which represent less than 10% of the total loan portfolio at both December 31, 2013 and 2012. Terms and collateral requirements vary depending on the size and nature of the loan.

CNB has not underwritten any hybrid loans, payment option loans, or low documentation/no documentation loans. Variable rate loans are generally underwritten at the fully indexed rate. Loan underwriting policies and procedures have not changed materially between any periods presented.

Transactions in the allowance for loan losses for the year ended December 31, 2013 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2013	$	4,940		$	4,697		$	2,466		$	1,699		$	83		$	175		$	14,060
Charge-offs		(958	)		(1,931	)		(467	)		(1,919	)		(97	)		(258	)		(5,630	)
Recoveries		7			1,430			5			114			16			94			1,666
Provision for loan losses		2,290			1,273			876			1,439			64			196			6,138
Allowance for loan losses, December 31, 2013	$	6,279		$	5,469		$	2,880		$	1,333		$	66		$	207		$	16,234

Transactions in the allowance for loan losses for the year ended December 31, 2012 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2012	$	4,511		$	4,470		$	1,991		$	1,404		$	71		$	168		$	12,615
Charge-offs		(2,871	)		(401	)		(304	)		(1,279	)		(78	)		(257	)		(5,190	)
Recoveries		45			0			1			91			18			99			254
Provision for loan losses		3,255			628			778			1,483			72			165			6,381
Allowance for loan losses, December 31, 2012	$	4,940		$	4,697		$	2,466		$	1,699		$	83		$	175		$	14,060

Transactions in the allowance for loan losses for the year ended December 31, 2011 were as follows:

	Commercial, Industrial, and Agricultural			Commercial Mortgages			Residential Real Estate			Consumer			Credit Cards			Overdrafts			Total
Allowance for loan losses, January 1, 2011	$	3,517		$	3,511		$	1,916		$	1,561		$	96		$	219		$	10,820
Charge-offs		(1,796	)		(175	)		(217	)		(907	)		(39	)		(222	)		(3,356	)
Recoveries		9			0			13			88			10			94			214
Provision for loan losses		2,781			1,134			279			662			4			77			4,937
Allowance for loan losses, December 31, 2011	$	4,511		$	4,470		$	1,991		$	1,404		$	71		$	168		$	12,615

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and is based on the Corporation’s impairment method as of December 31, 2013 and 2012. The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance.

December 31, 2013	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	372	$	55	$	0	$	0	$	0	$	0	$	427
Collectively evaluated for impairment		5,907		3,959		2,880		1,333		66		207		14,352
Acquired with deteriorated credit quality		0		0		0		0		0		0		0
Modified in a troubled debt restructuring		0		1,455		0		0		0		0		1,455
Total ending allowance balance	$	6,279	$	5,469	$	2,880	$	1,333	$	66	$	207	$	16,234
Loans:
Individually evaluated for impairment	$	4,923	$	1,249	$	0	$	0	$	0	$	0	$	6,172
Collectively evaluated for impairment		285,518		452,945		471,298		63,491		5,065		409		1,278,726
Acquired with deteriorated credit quality		0		2,225		0		0		0		0		2,225
Modified in a troubled debt restructuring		1,263		10,873		0		0		0		0		12,136
Total ending loans balance	$	291,704	$	467,292	$	471,298	$	63,491	$	5,065	$	409	$	1,299,259

December 31, 2012	Commercial, Industrial, and Agricultural		Commercial Mortgages		Residential Real Estate		Consumer		Credit Cards		Overdrafts		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	541	$	131	$	81	$	0	$	0	$	0	$	753
Collectively evaluated for impairment		4,399		3,467		2,385		1,699		83		175		12,208
Modified in a troubled debt restructuring		0		1,099		0		0		0		0		1,099
Total ending allowance balance	$	4,940	$	4,697	$	2,466	$	1,699	$	83	$	175	$	14,060
Loans:
Individually evaluated for impairment	$	2,623	$	10,683	$	593	$	0	$	0	$	0	$	13,899
Collectively evaluated for impairment		253,048		240,907		347,311		58,668		4,800		971		905,705
Modified in a troubled debt restructuring		1,420		10,201		0		0		0		0		11,621
Total ending loans balance	$	257,091	$	261,791	$	347,904	$	58,668	$	4,800	$	971	$	931,225

The following tables present information related to loans individually evaluated for impairment, including loans modified in troubled debt restructurings, by portfolio segment as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012, and 2011:

December 31, 2013	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	5,402	$	4,152	$	372
Commercial mortgage		6,173		5,970		1,510
Residential real estate		0		0		0
With no related allowance recorded:
Commercial, industrial, and agricultural		2,055		2,034		0
Commercial mortgage		6,178		6,152		0
Residential real estate		0		0		0
Total	$	19,808	$	18,308	$	1,882

December 31, 2012	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With an allowance recorded:
Commercial, industrial, and agricultural	$	2,542	$	1,792	$	541
Commercial mortgage		5,870		5,329		1,230
Residential real estate		416		381		81
With no related allowance recorded:
Commercial, industrial, and agricultural		2,804		2,251		0
Commercial mortgage		17,285		15,555		0
Residential real estate		308		212		0
Total	$	29,225	$	25,520	$	1,852

The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been charged off.

	Year Ended December 31, 2013
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	1,989	$	7	$	7
Commercial mortgage		6,572		3		3
Residential real estate		101		7		7
With no related allowance recorded:
Commercial, industrial, and agricultural		2,124		0		0
Commercial mortgage		11,885		0		0
Residential real estate		86		0		0
Total	$	22,757	$	17	$	17

	Year Ended December 31, 2012
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,083	$	4	$	4
Commercial mortgage		5,504		3		3
Residential real estate		334		13		13
With no related allowance recorded:
Commercial, industrial, and agricultural		3,217		0		0
Commercial mortgage		12,723		0		0
Residential real estate		103		0		0
Total	$	24,964	$	20	$	20

	Year Ended December 31, 2011
	Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Recognized
With an allowance recorded:
Commercial, industrial, and agricultural	$	3,711	$	3	$	3
Commercial mortgage		6,412		19		19
Residential real estate		179		4		4
With no related allowance recorded:
Commercial, industrial, and agricultural		2,050		0		0
Commercial mortgage		6,040		0		0
Residential real estate		0		0		0
Total	$	18,392	$	26	$	26

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of December 31, 2012 and 2011:

	December 31, 2013				December 31, 2012
	Nonaccrual		Past Due Over 90 Days Still on Accrual		Nonaccrual		Past Due Over 90 Days Still on Accrual
Commercial, industrial, and agricultural	$	1,006	$	0	$	3,073	$	0
Commercial mortgages		7,236		0		8,570		109
Residential real estate		2,389		150		2,792		18
Consumer		942		170		10		217
Credit cards		0		24		0		13
Total	$	11,573	$	344	$	14,445	$	357

Nonaccrual loans and loans past due over 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the aging of the recorded investment in past due loans as of December 31, 2013 and 2012 by class of loans.

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	211	$	542	$	855	$	1,608	$	290,096	$	291,704
Commercial mortgages		1,258		713		7,236		9,207		458,085		467,292
Residential real estate		4,216		114		2,539		6,869		464,429		471,298
Consumer		334		1,049		1,112		2,495		60,996		63,491
Credit cards		0		29		24		53		5,012		5,065
Overdrafts		0		0		0		0		409		409
Total	$	6,019	$	2,447	$	11,766	$	20,232	$	1,279,027	$	1,299,259

December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Commercial, industrial, and agricultural	$	724	$	157	$	2,968	$	3,849	$	253,242	$	257,091
Commercial mortgages		1,162		3,197		8,679		13,038		248,753		261,791
Residential real estate		1,390		641		2,700		4,731		343,173		347,904
Consumer		724		203		227		1,154		57,514		58,668
Credit cards		39		9		13		61		4,739		4,800
Overdrafts		0		0		0		0		971		971
Total	$	4,039	$	4,207	$	14,587	$	22,833	$	908,392	$	931,225

Troubled Debt Restructurings

During the years ended December 31, 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included either or both of the following: a reduction of the stated interest rate of the loan; or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk.

The following table presents the number of loans, loan balances, and specific reserves for loans that have been restructured in a troubled debt restructuring as of December 31, 2013 and December 31, 2012.

	December 31, 2013						December 31, 2012
	Number of Loans		Loan Balance		Specific Reserve		Number of Loans		Loan Balance		Specific Reserve
Commercial, industrial, and agricultural		2	$	1,263	$	0		2	$	1,420	$	0
Commercial mortgages		10		10,873		1,455		8		10,201		1,099
Residential real estate		0		0		0		0		0		0
Consumer		0		0		0		0		0		0
Credit cards		0		0		0		0		0		0
Total		12	$	12,136	$	1,455		10	$	11,621	$	1,099

The following table presents loans by class modified as troubled debt restructurings that occurred during the years ended December 31, 2013 and 2012:

	Year Ended December 31, 2013
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding  Recorded Investment
Commercial, industrial, and agricultural		0	$	0	$	0
Commercial mortgages		3		3,747		3,681
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0
Total		3	$	3,747	$	3,681

	Year Ended December 31, 2012
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding  Recorded Investment
Commercial, industrial, and agricultural		2	$	1,455	$	1,455
Commercial mortgages		5		2,717		2,717
Residential real estate		0		0		0
Consumer		0		0		0
Credit cards		0		0		0
Total		7	$	4,172	$	4,172

The troubled debt restructurings described above increased the allowance for loan losses by $514 and $101 during the years ended December 31, 2013 and 2012, respectively.

Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from 4-15 years. Modifications involving an extension of the maturity date were for periods ranging from 4-18 years.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. Except as discussed below, all loans modified in troubled debt restructurings are performing in accordance with their modified terms as of December 31, 2013 and 2012 and no principal balances were forgiven in connection with the loan restructurings.

During the year ended December 31, 2013, the Corporation recorded a partial charge-off of $974 for a commercial mortgage loan with a balance of $1,660 that had defaulted under its restructured terms in 2012 and was placed on nonaccrual status. The Corporation recorded an additional provision for loan losses of $262 on this loan during the year ended December 31, 2013. A commercial mortgage loan with a balance of $1,086 defaulted under its restructured terms in 2013 and was placed on nonaccrual status. The Corporation recorded an additional provision for loan losses of $615 during the year ended December 31, 2013. In addition, an impaired commercial mortgage loan that was placed on non-accrual status in 2013 and having a balance of $3,269 was modified in a troubled debt restructuring. The Corporation recorded an additional provision for loan losses of $514 for this loan during the year ended December 31, 2013.

During the year ended December 31, 2012, one commercial mortgage loan with a balance of $1,660 defaulted under its restructured terms and was placed on nonaccrual status, resulting in an increase in the allowance for loan losses of $503. No loans that were modified in a troubled debt restructuring were charged off during the year ended December 31, 2012.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without a loan modification. This evaluation is performed using the Corporation’s internal underwriting policies. The Corporation has no further loan commitments to customers whose loans are classified as a troubled debt restructuring.

Generally, non-performing troubled debt restructurings are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt.

Credit Quality Indicators

The Corporation classifies commercial, industrial, and agricultural loans and commercial mortgage loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans with outstanding balances greater than $1 million are analyzed at least semiannually and loans with outstanding balances of less than $1 million are analyzed at least annually.

The Corporation uses the following definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Corporation’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans. All loans included in the following tables have been assigned a risk rating within 12 months of the balance sheet date.

December 31, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	266,868	$	5,377	$	19,318	$	141	$	291,704
Commercial mortgages		404,876		16,755		44,936		725		467,292
Total	$	671,744	$	22,132	$	64,254	$	866	$	758,996

December 31, 2012	Pass		Special Mention		Substandard		Doubtful		Total
Commercial, industrial, and agricultural	$	234,835	$	6,641	$	15,459	$	156	$	257,091
Commercial mortgages		225,294		12,294		23,501		702		261,791
Total	$	460,129	$	18,935	$	38,960	$	858	$	518,882

The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate, consumer, and credit card loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential, consumer, and credit card loans based on payment activity as of December 31, 2013 and December 31, 2012:

	December 31, 2013						December 31, 2012
	Residential Real Estate		Consumer		Credit Cards		Residential Real Estate		Consumer		Credit Cards
Performing	$	468,759	$	62,379	$	5,041	$	345,094	$	58,441	$	4,787
Non-performing		2,539		1,112		24		2,810		227		13
Total	$	471,298	$	63,491	$	5,065	$	347,904	$	58,668	$	4,800

The Corporation’s portfolio of residential real estate and consumer loans maintained within Holiday Financial Services Corporation (“Holiday”), a subsidiary that offers small balance unsecured and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics than are typical in the Bank’s consumer loan portfolio, are considered to be subprime loans.

Holiday’s loan portfolio, included in consumer and residential loans above, is summarized as follows at December 31, 2013 and 2012:

	2013			2012
Consumer	$	24,891		$	21,535
Residential real estate		1,552			954
Less: unearned discount		(3,896	)		(3,401	)
Total	$	22,547		$	19,088

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Secondary Market Mortgage Activities

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Secondary Market Mortgage Activities

6.   Secondary Market Mortgage Activities

The following summarizes secondary market mortgage activities for the years ended December 31, 2013, 2012, and 2011:

	2013		2012		2011
Loans originated for resale, net of principal pay downs	$	19,883	$	32,626	$	19,927
Proceeds from sales of loans held for sale		22,252		32,512		23,324
Net gains on sales of loans held for sale		808		927		638
Loan servicing fees		375		340		349

Total loans serviced for others was $114,428, $104,017, and $109,006 at December 31, 2013, 2012, and 2011, respectively.

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Balance, beginning of year	$	714		$	906		$	909
Additions		350			85			249
Servicing rights acquired		83			0			0
Amortization		(242	)		(277	)		(252	)
Balance, end of year	$	905		$	714		$	906

The fair value of mortgage servicing rights is based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The fair value of mortgage servicing rights was $915, $718, and $959 at December 31, 2013, 2012, and 2011, respectively. No valuation allowance is deemed necessary at December 31, 2013, 2012, or 2011. The fair value of interest rate lock commitments was not material at December 31, 2013 or 2012.

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Foreclosed Assets

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Foreclosed Assets

8.  Foreclosed Assets

Foreclosed real estate is reported net of a valuation allowance and included in accrued interest receivable and other assets in the accompanying consolidated balance sheets. Activity for the years ended December 31, 2013, 2012, and 2011 is as follows:

	2013			2012			2011
Balance, beginning of year	$	325		$	505		$	396
Additions		1,151			750			249
Sales (at carrying value)		(490	)		(930	)		(140	)
Balance, end of year	$	986		$	325		$	505

Expenses related to foreclosed real estate include:

	2013			2012			2011
Net loss (gain) on sale	$	(252	)	$	(158	)	$	(101	)
Operating expenses, net of rental income		81			176			24
	$	(171	)	$	18		$	(77	)

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Securities - Summary of Structured Pooled Trust Preferred Securities (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Adjusted Amortized Cost	$ 800
Unrealized Gain (Loss)	(139)
Fair Value	661
Credit Losses Realized in Earnings	0	0	398
ALESCO Preferred Funding V, Ltd [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Amortized Cost	800
Unrealized Gain (Loss)	(139)
Fair Value	661
Credit Losses Realized in Earnings	0	0	0
ALESCO Preferred Funding XII, Ltd [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Amortized Cost	0
Unrealized Gain (Loss)	0
Fair Value	0
Credit Losses Realized in Earnings	0	0	280
ALESCO Preferred Funding XVII, Ltd [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Amortized Cost	0
Unrealized Gain (Loss)	0
Fair Value	0
Credit Losses Realized in Earnings	0	0	0
Preferred Term Securities XVI, Ltd [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Amortized Cost	0
Unrealized Gain (Loss)	0
Fair Value	0
Credit Losses Realized in Earnings	0	0	118
US Capital Funding VI, Ltd. [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Amortized Cost	0
Unrealized Gain (Loss)	0
Fair Value	0
Credit Losses Realized in Earnings	$ 0	$ 0	$ 0

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Off Balance Sheet Activities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Commitments to make loans periods	60 days or less
Minimum [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Fixed Interest rate loan	2.15%	2.15%
Fixed rate loan Maturities range	3 months	3 months
Maximum [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items]
Fixed Interest rate loan	18.00%	16.00%
Fixed rate loan Maturities range	20 years	20 years

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Premises and Equipment - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Renewal_Terms	Dec. 31, 2012	Dec. 31, 2011
Depreciation on premises and equipment	$ 2,147	$ 1,948	$ 1,823
Rental expense, net of rental income	490	351	349
Sale leaseback transaction, lease term	17 years
Sale leaseback transaction, number of automatic renewals	2
Sale leaseback transaction, two automatic lease renewal, period	5 years	5 years
Sale leaseback transaction, sale of property, amount	1,200
Sale leaseback transaction, deferred gain	489
Sale leaseback transaction, gain recognized	17	19	16
Facilities [Member]
Non cancelable operating leases having remaining term less than one year	20
Vehicles [Member]
Non cancelable operating leases having remaining term less than one year	4
Capital Addition Purchase Commitments [Member]
Contractual commitment to expand its main office facility in Clearfield, Pennsylvania at a cost	4,128
Construction-related expenditures	$ 3,112

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Securities - Schedule of Contractual Maturity of Securities Available for Sale, Excluding Equity Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
1 year or less, Amortized Cost	$ 31,192
1 year - 5 years, Amortized Cost	141,228
5 years - 10 years, Amortized Cost	165,713
After 10 years, Amortized Cost	40,106
Total, Amortized Cost	378,239
1 year or less, Fair Value	30,902
1 year - 5 years, Fair Value	141,410
5 years - 10 years, Fair Value	163,735
After 10 years, Fair Value	38,257
Total, Fair Value	374,304
Total debt securities, Amortized Cost	696,718
Total debt securities, Fair Value	685,006
Residential and Multi-Family Mortgage [Member]
Schedule of Available-for-sale Securities [Line Items]
Mortgage & asset backed securities, Amortized Cost	248,017
Mortgage & asset backed securities, Fair Value	242,607
Pooled SBA [Member]
Schedule of Available-for-sale Securities [Line Items]
Mortgage & asset backed securities, Amortized Cost	70,077
Mortgage & asset backed securities, Fair Value	67,721
Commercial Mortgage [Member]
Schedule of Available-for-sale Securities [Line Items]
Mortgage & asset backed securities, Amortized Cost	385
Mortgage & asset backed securities, Fair Value	$ 374

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Income Taxes - Components of Net Deferred Tax Liability (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets:
Allowance for loan losses	$ 5,084	$ 4,632
Unrealized loss on securities available for sale	4,085	0
Fair value adjustments - business combination	3,541	0
Deferred compensation	2,179	1,753
Impaired security valuation	590	670
Net operating loss carryover	2,155	0
Capital loss carryover	0	278
Post-retirement benefits	1,308	1,063
Unrealized loss on interest rate swap	391	616
Nonaccrual loan interest	516	305
Accrued expenses	817	297
Other	296	312
Deferred tax assets	20,962	9,926
Deferred tax liabilities:
Unrealized gain on securities available for sale	0	8,636
Premises and equipment	1,527	1,535
Intangibles - section 197	5,130	3,179
Mortgage servicing rights	317	250
Other	328	339
Deferred tax liabilities	7,302	13,939
Net deferred tax asset (liability)	$ 13,660	$ (4,013)

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Securities - Securities with Unrealized Losses Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	$ 341,633	$ 85,252
Less than 12 Months, Unrealized Loss	(16,734)	(923)
12 Months or More, Fair Value	58,496	17,856
12 Months or More, Unrealized Loss	(4,840)	(2,584)
Total, Fair Value	400,129	103,108
Total, Unrealized Loss	(21,574)	(3,507)
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	0	0
Less than 12 Months, Unrealized Loss	0	0
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Loss	0	0
Total, Fair Value	0	0
Total, Unrealized Loss	0	0
U.S. Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	95,677	41,715
Less than 12 Months, Unrealized Loss	(5,394)	(161)
12 Months or More, Fair Value	17,964	0
12 Months or More, Unrealized Loss	(1,080)	0
Total, Fair Value	113,641	41,715
Total, Unrealized Loss	(6,474)	(161)
States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	57,526	7,857
Less than 12 Months, Unrealized Loss	(2,192)	(57)
12 Months or More, Fair Value	5,324	0
12 Months or More, Unrealized Loss	(125)	0
Total, Fair Value	62,850	7,857
Total, Unrealized Loss	(2,317)	(57)
Residential and Multi-Family Mortgage [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	150,229	32,159
Less than 12 Months, Unrealized Loss	(6,806)	(688)
12 Months or More, Fair Value	16,608	4,254
12 Months or More, Unrealized Loss	(1,014)	(14)
Total, Fair Value	166,837	36,413
Total, Unrealized Loss	(7,820)	(702)
Commercial Mortgage [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	374	0
Less than 12 Months, Unrealized Loss	(11)	0
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Loss	0	0
Total, Fair Value	374	0
Total, Unrealized Loss	(11)	0
Corporate Notes and Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	0	0
Less than 12 Months, Unrealized Loss	0	0
12 Months or More, Fair Value	9,662	13,002
12 Months or More, Unrealized Loss	(1,734)	(2,370)
Total, Fair Value	9,662	13,002
Total, Unrealized Loss	(1,734)	(2,370)
Pooled Trust Preferred [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	0	0
Less than 12 Months, Unrealized Loss	0	0
12 Months or More, Fair Value	661	600
12 Months or More, Unrealized Loss	(139)	(200)
Total, Fair Value	661	600
Total, Unrealized Loss	(139)	(200)
Pooled SBA [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	36,842	3,521
Less than 12 Months, Unrealized Loss	(2,296)	(17)
12 Months or More, Fair Value	8,277	0
12 Months or More, Unrealized Loss	(748)	0
Total, Fair Value	45,119	3,521
Total, Unrealized Loss	(3,044)	(17)
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 Months, Fair Value	985	0
Less than 12 Months, Unrealized Loss	(35)	0
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Loss	0	0
Total, Fair Value	985	0
Total, Unrealized Loss	$ (35)	$ 0

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Goodwill and Intangible Assets - Estimated Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
2014	$ 1,180
2015	1,007
2016	835
2017	662
2018	$ 489

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Parent Company Only Financial Information - Condensed Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
ASSETS
Trading securities	$ 4,127	$ 4,459
Total assets	2,131,289	1,773,079
LIABILITIES
Subordinated debentures	20,620	20,620
Total liabilities	1,966,378	1,627,715
Total shareholders' equity	164,911	145,364	131,889	109,645
Total liabilities and shareholders' equity	2,131,289	1,773,079
Parent Company [Member]
ASSETS
Cash	1,778	2,029
Trading securities	276	229
Investment in bank subsidiary	161,983	138,195
Investment in non-bank subsidiaries	22,738	27,796
Deferred tax asset	636	883
Other assets	2,240	2,249
Total assets	189,651	171,381
LIABILITIES
Borrowings from subsidiary	1,350	1,950
Subordinated debentures	20,620	20,620
Other liabilities	2,770	3,447
Total liabilities	24,740	26,017
Total shareholders' equity	164,911	145,364
Total liabilities and shareholders' equity	$ 189,651	$ 171,381

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The computation of basic and diluted earnings per share is shown below (in thousands, except per share data).  

	Years Ended December 31
	2013			2012			2011
Basic earnings per common share computation
Net income per consolidated statements of income	$	16,679		$	17,136		$	15,104
Net earnings allocated to participating securities		(73	)		(62	)		(42	)
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Distributed earnings allocated to common stock	$	8,532		$	8,182		$	8,101
Undistributed earnings allocated to common stock		8,074			8,892			6,961
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Weighted average common shares outstanding, including shares considered participating securities		12,929			12,441			12,306
Less: Average participating securities		(50	)		(41	)		(33	)
Weighted average shares		12,879			12,400			12,273
Basic earnings per common share	$	1.29		$	1.38		$	1.23
Diluted earnings per common share computation
Net earnings allocated to common stock	$	16,606		$	17,074		$	15,062
Weighted average common shares outstanding for basic earnings per common share		12,879			12,400			12,273
Add: Dilutive effects of assumed exercises of stock options		2			3			6
Weighted average shares and dilutive potential common shares		12,881			12,403			12,279
Diluted earnings per common share	$	1.29		$	1.38		$	1.23

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Parent Company Only Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheets

CONDENSED BALANCE SHEETS	December 31,
	2013		2012
Assets
Cash	$	1,778	$	2,029
Trading securities		276		229
Investment in bank subsidiary		161,983		138,195
Investment in non-bank subsidiaries		22,738		27,796
Deferred tax asset		636		883
Other assets		2,240		2,249
Total assets	$	189,651	$	171,381
Liabilities
Borrowings from subsidiary	$	1,350	$	1,950
Subordinated debentures		20,620		20,620
Other liabilities		2,770		3,447
Total liabilities		24,740		26,017
Total shareholders’ equity		164,911		145,364
Total liabilities and shareholders’ equity	$	189,651	$	171,381

Condensed Statements of Income and Comprehensive Income

CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	Year Ended December 31,
Income:	2013			2012			2011
Dividends from:
Bank subsidiary	$	1,875		$	7,990		$	7,600
Non-bank subsidiaries		6,674			0			0
Other		208			208			146
Total income		8,757			8,198			7,746
Expenses		(1,461	)		(1,457	)		(1,410	)
Income before income taxes and equity in undistributed net income of subsidiaries:		7,296			6,741			6,336
Income tax benefit		438			438			443
Equity in undistributed net income of bank subsidiary		14,080			8,682			7,162
Equity in undistributed net income (loss) of non-bank subsidiaries		(5,135	)		1,275			1,163
Net income		16,679			17,136			15,104
Other Comprehensive Income (Loss):
Net change in unrealized gains/losses on available for sale securities, net of reclassification and tax		(23,675	)		3,561			14,441
Change in actuarial gain, net of amortization and tax, for post-employment health care plan, net of tax		(103	)		(349	)		(485	)
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of tax		409			(49	)		(522	)
Total other comprehensive income (loss)		(23,369	)		3,163			13,434
Comprehensive income (loss)	$	(6,690	)	$	20,299		$	28,538

Condensed Statements of Cash Flows

CONDENSED STATEMENTS OF CASH FLOWS	Year Ended December 31,
	2013			2012			2011
Net income
Adjustments to reconcile net income to net cash provided by	$	16,679		$	17,136		$	15,104
operating activities:
Equity in undistributed net income of bank subsidiary		(14,080	)		(8,682	)		(7,162	)
Equity in undistributed (net income) loss of non-bank subsidiaries		5,135			(1,275	)		(1,163	)
Net unrealized (gains) losses on trading securities		(47	)		(54	)		2
Decrease in other assets		112			47			39
Increase in other liabilities		384			384			334
Net cash provided by operating activities		8,183			7,556			7,154
Cash flows from investing activities:
Purchase of securities		0			0			(100	)
Net cash used in investing activities		0			0			(100	)
Cash flows from financing activities:
Dividends paid		(8,573	)		(8,214	)		(8,125	)
Proceeds from sale of treasury stock and option exercises		739			951			1,447
Net advance to (repayment from) subsidiary		(600	)		(200	)		400
Net cash used in financing activities		(8,434	)		(7,463	)		(6,278	)
Net increase (decrease) in cash		(251	)		93			776
Cash beginning of year		2,029			1,936			1,160
Cash end of year	$	1,778		$	2,029		$	1,936

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Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

13.  Income Taxes

The following is a summary of income tax expense for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
Current – federal	$	7,189		$	6,535		$	4,951
Current – state		128			116			137
Deferred - federal		(977	)		(240	)		441
Income tax expense	$	6,340		$	6,411		$	5,529

The components of the net deferred tax asset (liability) as of December 31, 2013 and 2012 are as follows:

	2013		2012
Deferred tax assets:
Allowance for loan losses	$	5,084	$	4,632
Unrealized loss on securities available for sale		4,085		0
Fair value adjustments – business combination		3,541		0
Deferred compensation		2,179		1,753
Impaired security valuation		590		670
Net operating loss carryover		2,155		0
Capital loss carryover		0		278
Post-retirement benefits		1,308		1,063
Unrealized loss on interest rate swap		391		616
Nonaccrual loan interest		516		305
Accrued expenses		817		297
Other		296		312
		20,962		9,926
Deferred tax liabilities:
Unrealized gain on securities available for sale		0		8,636
Premises and equipment		1,527		1,535
Intangibles – section 197		5,130		3,179
Mortgage servicing rights		317		250
Other		328		339
		7,302		13,939
Net deferred tax asset (liability)	$	13,660	($	4,013	)

The Corporation determined that it was not required to establish a valuation allowance for deferred tax assets since management believes that the deferred tax assets are likely to be realized through a carry back to taxable income in prior years, future reversals of existing temporary differences, and future taxable income.

The reconciliation of income tax attributable to pre-tax income at the federal statutory tax rates to income tax expense is as follows:

	2013			%			2012			%			2011			%
Tax at statutory rate	$	8,057			35.0		$	8,241			35.0		$	7,222			35.0
Tax exempt income, net		(1,664	)		(7.2	)		(1,553	)		(6.6	)		(1,353	)		(6.6	)
Bank owned life insurance		(543	)		(2.4	)		(341	)		(1.4	)		(325	)		(1.6	)
Merger costs		233			1.0			0			0.0			0			0.0
Other		257			1.1			64			0.2			(15	)		(0.0	)
Income tax expense	$	6,340			27.5		$	6,411			27.2		$	5,529			26.8

At December 31, 2013 and 2012, the Corporation has no unrecognized tax benefits. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase in the next twelve months.

The Corporation recognizes interest and/or penalties related to income tax matters as part of income tax expense. At December 31, 2013 and 2012, there were no amounts accrued for interest and/or penalties.

The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the Commonwealth of Pennsylvania. The Corporation is no longer subject to examination by the taxing authorities for years prior to 2010. Tax years 2010 through 2012 remain open to federal and state examination.

In connection with its acquisition of FC Banc Corp., the Corporation assumed a federal net operating loss carryforward of $6,367, which expires in 2033. Under Section 382 of the Internal Revenue Code, the utilization of the loss carryforward in future years is limited based on the consideration paid and other factors. Management believes that the net operating loss carryforward will be used in full before its expiration.

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Stock-Based Compensation - Summary of Changes in Nonvested Restricted Stock Awards (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Nonvested at beginning of period, Shares	49,574
Granted, Shares	31,500	26,900	17,900
Forfeited, Shares	(525)
Vested, Shares	(18,473)
Nonvested at end of period, Shares	62,076	49,574
Nonvested at beginning of period, Weighted-average Grant Date Fair Value	$ 15.37
Granted, Weighted-average Grant Date Fair Value	$ 17.10
Forfeited, Weighted-average Grant Date Fair Value	$ 16.44
Vested, Weighted-average Grant Date Fair Value	$ 15.33
Nonvested at end of period, Weighted-average Grant Date Fair Value	$ 16.25	$ 15.37

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Capital Requirements and Restrictions on Retained Earnings

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Capital Requirements and Restrictions on Retained Earnings

18.  Capital Requirements and Restrictions on Retained Earnings

Banks and financial holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, for the Bank, prompt corrective action (PCA) regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory enforcement actions. Management believes as of December 31, 2013 the Corporation and Bank meet all capital adequacy requirements to which they are subject.

The PCA regulations provide five capital categories: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms alone do not represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion; brokered deposits may not be accepted, renewed or rolled over; and capital restoration plans are required. As of December 31, 2013 and 2012, the most recent regulatory notifications categorized the Bank as well capitalized under the PCA regulatory framework. There are no events or conditions since this notification that management believes have changed the Bank’s capital category.

Actual and required capital amounts and ratios are presented below as of December 31, 2013 and 2012:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2013
Total Capital to Risk Weighted Assets
Consolidated		$183,984		13.72	%		$107,316		8.0	%		N/A
Bank		$166,440		12.57	%		$105,912		8.0	%		$132,390		10.0	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated		$167,773		12.51	%		$53,658		4.0	%		N/A
Bank		$151,585		11.45	%		$52,956		4.0	%		$79,434		6.0	%
Tier 1 (Core) Capital to Average Assets
Consolidated		$167,773		7.96	%		$84,332		4.0	%		N/A
Bank		$151,585		7.39	%		$82,078		4.0	%		$102,597		5.0	%
December 31, 2012
Total Capital to Risk Weighted Assets
Consolidated		$152,968		15.28	%		$80,073		8.0	%		N/A
Bank		$131,788		13.46	%		$78,324		8.0	%		$97,905		10.0	%
Tier 1 (Core) Capital to Risk Weighted Assets
Consolidated		$140,426		14.03	%		$40,036		4.0	%		N/A
Bank		$119,534		12.21	%		$39,162		4.0	%		$58,743		6.0	%
Tier 1 (Core) Capital to Average Assets
Consolidated		$140,426		8.06	%		$69,726		4.0	%		N/A
Bank		$119,534		6.99	%		$68,409		4.0	%		$85,512		5.0	%

Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans or advances. At December 31, 2013, $22,763 of accumulated net earnings of the Bank, included in the consolidated stockholders’ equity, was available for distribution to the Corporation as dividends without prior regulatory approval, subject to regulatory capital requirements described above.

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Borrowings - Additional Information (Detail) (USD $)	12 Months Ended					1 Months Ended	12 Months Ended
	Dec. 31, 2007 Security	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Unaffiliated institution 1 [Member]	Dec. 31, 2012 Unaffiliated institution 1 [Member]	Mar. 31, 2007 Unaffiliated Institution [Member]	Dec. 31, 2013 Unaffiliated Institution [Member]	Dec. 31, 2013 Subordinated Debentures [Member]	Dec. 31, 2012 Subordinated Debentures [Member]	Dec. 31, 2007 Subordinated Debentures [Member]	Dec. 31, 2013 Over Night Borrowings [Member] Unaffiliated institution 1 [Member]	Dec. 31, 2012 Over Night Borrowings [Member] Unaffiliated institution 1 [Member]
Borrowings Under Repurchase Agreements [Line items]
Line of credit facility, maximum borrowing capacity		$ 10,000,000	$ 9,000,000
Line of credit, outstanding amount		0	0
FHLB borrowings, available capacity		348,574,000
FHLB borrowings, pledge of selected securities, loan covered amount		75,885,000
FHLB borrowings, pledge on certain loans, loan covered amount		469,822,000
Borrowings under US treasury											12,950,000	23,510,000
Borrowings from unaffiliated entities, interest rate		5.25%	5.25%	0.35%	0.35%
Borrowings from unaffiliated entities, transaction amount						10,000,000
Borrowings securities pledged under certain transaction							12,222,000
Borrowing maturity date							Mar. 20, 2017
Borrowings, floating interest rate description							Variable interest rate of 3 month LIBOR minus 1.0%	Floats based on the 3 month LIBOR plus 1.55% and was 1.79% and 1.86%	Floats based on the 3 month LIBOR plus 1.55% and was 1.79% and 1.86%
Line Of Credit, Basis Spread on LIBOR							1.00%	1.55%
Issue of floating rate trust preferred securities										$ 10,000,000
Trust preferred securities, interest payment deferment period maximum								5 years
Trust preferred securities, period end interest rate								1.79%	1.86%
Trust preferred securities, redemption year maximum								2037
Issuance of preferred securities	2

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Off Balance Sheet Activities (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Schedule of Off-Balance Sheet Risks

The contractual amount of financial instruments with off balance sheet risk was as follows at December 31, 2013 and 2012:

	2013				2012
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to make loans		$54,556		$155,391		$13,670		$171,862
Unused lines of credit		0		78,937		0		69,621
Standby letters of credit		0		13,520		0		22,598

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Employee Benefit Plans - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Age Services	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee pretax contribution percentage	100.00%
Employees compensation	50.00%
Corporations contributions	$ 431	$ 397	$ 385
Profit sharing contributions	6.00%
Compensation percentage in excess of specified amount	5.70%
Excess of compensation	114
Recognized profit sharing expense	855	783	667
Obligations of other liabilities	4,120	3,792
Expenses related employee benefit plans	541	728	647
Obligations under survivor benefit plan	932	813
Other liabilities related to survivor benefit plan	119	127	106
Employee retirement health care benefits plan	60
Minimum service period for participation in benefit plan	30
Accumulated benefit obligation	2,485	2,224
Amortized from accumulated other comprehensive income into net periodic benefit cost	149
Weighted average discount rate net periodic benefit cost	3.88%	4.29%	5.50%
Weighted average rate accrued benefit obligations	4.31%	3.88%	4.29%
Expected costs of benefit	5.00%
Percent rate of increase in the health care trend	1.00%
Increase in health care trend rates	241
Increase service and interest costs	21
Percent rate of decrease in the health care trend	1.00%
Decrease in health care trend rates	217
Decrease service and interest costs	$ 19
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee contribution percentage	1.00%
Total contributed by employee percentage	1.00%
Qualifying dependents age group	60
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee contribution percentage	3.00%
Total contributed by employee percentage	4.00%
Qualifying dependents age group	65

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Deposits (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Summary of Time Certificates of Deposit Accounts Included in Total Deposits and Their Remaining Maturities

The following table reflects time certificates of deposit accounts included in total deposits and their remaining maturities at December 31, 2013:

Time deposits maturing:
2014	$	122,126
2015		43,106
2016		40,874
2017		20,608
2018		27,043
Thereafter		12,005
	$	265,762

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Employee Benefit Plans - Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Employee Benefit Plan [Line Items]
Net actuarial loss	$ (1,667)	$ (1,502)
Transition obligation	0	(7)
Tax effect	583	528
Accumulated Other Comprehensive Income (Loss) [Member]
Employee Benefit Plan [Line Items]
Actuarial loss	(1,667)	(1,509)
Employee Benefit Plan [Member]
Employee Benefit Plan [Line Items]
Other comprehensive income (loss)	$ (1,084)	$ (981)

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Consolidated Statements of Income and Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Statement [Abstract]
Accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements	$ 400	$ 390	$ 402
Accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities	355	1,379	614
Income tax expense reclassification	$ (16)	$ 346	$ 74

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Foreclosed Assets - Summary of Foreclosed Assets Activity (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Banking And Thrift [Abstract]
Balance, beginning of year	$ 325	$ 505	$ 396
Additions	1,151	750	249
Sales (at carrying value)	(490)	(930)	(140)
Balance, end of year	$ 986	$ 325	$ 505

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Business Combination

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

Business Combination

2.  Business Combination

In the first quarter of 2013, the Corporation announced the signing of a definitive merger agreement to acquire 100% of the outstanding equity interests of FC Banc Corp. and its subsidiary, Farmers Citizens Bank, for $30.00 per share in cash and stock. Farmers Citizens Bank served the central Ohio markets of Bucyrus, Cardington, Fredericktown, Mount Hope and Shiloh, as well as the markets of Worthington and Upper Arlington in the greater Columbus, Ohio area, with 8 branch locations. The transaction closed on October 11, 2013 and resulted in consideration paid to FC Banc Corp. shareholders totaling approximately $41.6 million, comprised of approximately $8.0 million in cash and 1,873,879 shares of the Corporation’s common stock valued at approximately $33.6 million based on the October 11, 2013 closing price of $17.91 per share. FC Banc Corp. results of operations were included in the Corporation’s results beginning October 12, 2013.

The Corporation’s management and board of directors have periodically conducted strategic reviews as part of their ongoing efforts to improve the Corporation’s banking franchise and enhance shareholder value. In connection with these strategic reviews, the Corporation has considered potential acquisition targets, including banking institutions in Ohio. On March 26, 2013, the Corporation’s board of directors unanimously approved the merger transaction with FC Banc Corp. and authorized the Corporation’s management to execute and deliver the merger agreement.

As disclosed in the accompanying consolidated statements of income, the Corporation incurred merger costs of $2,396 during the year ended December 31, 2013. All merger costs have been expensed as incurred.

The following table summarizes the consideration paid for FC Banc Corp. and the amounts of the assets acquired and liabilities assumed that were recognized at the acquisition date:

Consideration paid:
Cash	$	8,013
Common stock		33,561
Fair value of total consideration transferred		41,574
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents		54,995
Securities available for sale		34,214
Loans		247,737
FHLB and other equity interests		1,789
Premises and equipment		4,328
Bank owned life insurance		3,955
Mortgage servicing rights		83
Core deposit intangible		4,834
Accrued interest receivable and other assets		8,093
Total assets acquired		360,028
Demand deposits		248,812
Time deposits		83,214
Accrued interest payable and other liabilities		2,676
Total liabilities assumed		334,702
Total identifiable net assets		25,326
Goodwill	$	16,248

Included in accrued interest receivable and other assets is a deferred tax asset totaling $5,696 representing the tax effect of temporary differences between the tax basis and fair values assigned to the assets and liabilities, as well as the effect of FC Banc Corp.’s net operating loss carryfowards. See Note 13.

Acquired loans were recorded at fair value with no carryover of the related allowance for loan losses. Determining the fair value of loans involved estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. Loans acquired with evidence of credit quality deterioration totaled $2,225. The Corporation acquired $256,418 of gross loans, including purchased credit impaired loans, and recognized a net combined yield and credit mark of $8,681.

Goodwill of $16,248 arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the operations of the Corporation and FC Banc Corp. None of the goodwill is expected to be deductible for income tax purposes.

The following table presents pro forma information as if the acquisition had occurred at the beginning of 2012:

	2013		2012
Net interest income	$	68,723	$	65,786
Net income		17,589		20,125
Basic earnings per share		1.23		1.41
Diluted earnings per share		1.23		1.41

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Earnings Per Share - Additional Information (Detail) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share [Abstract]
Antidilutive shares excluded from the diluted earnings per share calculations	0	37,500	75,500

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Secondary Market Mortgage Activities - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Disclosure [Abstract]
Total loans serviced to others	$ 114,428	$ 104,017	$ 109,006
Fair value of mortgage servicing rights	915	718	959
Valuation allowance	$ 0	$ 0	$ 0

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Employee Benefit Plans - Unfunded Post Retirement Benefits Plan (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Compensation And Retirement Disclosure [Abstract]
Benefit obligation at beginning of year	$ 2,224	$ 1,674	$ 1,073
Interest cost	84	69	56
Service cost	125	88	49
Actual claims	(167)	(184)	(262)
Plan amendment	(602)	0	0
Actuarial loss	821	577	758
Benefit obligation at end of year	$ 2,485	$ 2,224	$ 1,674

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Loans - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net unamortized loan costs and fees	$ 911	$ 232
Percentage of comprised loan, commercial, industrial and agricultural loans	23.00%	28.00%
Percentage of comprised loan, commercial mortgage loans	37.00%	29.00%
Risk rating to commercial loans	250,000
Percentage of loan-to-value to business equipment	80.00%
Percentage of loan-to-value to accounts receivable	75.00%
Percentage of loan-to-value to business inventory	60.00%
Percentage of loan-to-value to real estate	85.00%
Percentage of residential real estate loan in portfolio	37.00%	38.00%
Additional provision for loan losses	514	101
Minimum period to be considered for loan to have defaulted	90 days
Principal balances forgiven in connection with loan restructuring	0	0
Troubled debt restructuring charged off		0
Impaired commercial mortgage loan placed on non-accrual status, modified as TDRs	12,136	11,621
Resulting in an increase in the allowance for loan losses		503
Outstanding balance of semi annual loans	Greater than $1 million
Outstanding balance of annual loans	Less than $1 million
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum percentage of consumer loan and credit card in portfolio	10.00%	10.00%
Reduction in stated interest rate modification having loan range period	15 years
Extension of maturity date modification having loan range period	18 years
Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reduction in stated interest rate modification having loan range period	4 years
Extension of maturity date modification having loan range period	4 years
Commercial Mortgage Loan One [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Additional provision for loan losses	262
Troubled debt restructuring charged off	974
Commercial mortgage loan balance amount	1,086	1,660
Commercial Mortgage Loan Two [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Additional provision for loan losses	615
Commercial Mortgage Loan Three [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Additional provision for loan losses	514
Impaired commercial mortgage loan placed on non-accrual status, modified as TDRs	$ 3,269

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Off Balance Sheet Activities

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Off Balance Sheet Activities

19. Off Balance Sheet Activities

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off balance sheet risk was as follows at December 31, 2013 and 2012:

	2013				2012
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to make loans		$54,556		$155,391		$13,670		$171,862
Unused lines of credit		0		78,937		0		69,621
Standby letters of credit		0		13,520		0		22,598

Commitments to make loans are generally made for periods of 60 days or less. The fixed rate loan commitments at December 31, 2013 have interest rates ranging from 2.15% to 18.00% and maturities ranging from 3 months to 20 years. The fixed rate loan commitments at December 31, 2012 have interest rates ranging from 2.15% to 16.00% and maturities ranging from 3 months to 20 years.

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Capital Requirements and Restrictions on Retained Earnings - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Event CapitalCategory
Banking And Thrift [Abstract]
Number of capital categories provided by PCA regulation	5
Number of events resulting in change in Bank's capital category	0
Accumulated net earnings	$ 22,763

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Parent Company Only Financial Information - Condensed Statements of Income and Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Dividends from:
Income Before Income Taxes									$ 23,019	$ 23,547	$ 20,633
Income tax benefit									(6,340)	(6,411)	(5,529)
Net Income	4,728	4,703	2,951	4,297	3,890	4,563	4,336	4,347	16,679	17,136	15,104
Other Comprehensive Income (Loss):
Net change in unrealized gains/losses on available for sale securities, net of reclassification and tax									(23,675)	3,561	14,441
Change in actuarial gain, net of amortization and tax, for post-employment health care plan, net of tax									(103)	(349)	(485)
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of tax									409	(49)	(522)
Total other comprehensive income (loss)									(23,369)	3,163	13,434
Comprehensive income (loss)									(6,690)	20,299	28,538
Parent Company [Member]
Dividends from:
Bank subsidiary									1,875	7,990	7,600
Non-bank subsidiaries									6,674	0	0
Other									208	208	146
Total income									8,757	8,198	7,746
Expenses									(1,461)	(1,457)	(1,410)
Income Before Income Taxes									7,296	6,741	6,336
Income tax benefit									438	438	443
Equity in undistributed net income of bank subsidiary									14,080	8,682	7,162
Equity in undistributed net income (loss) of non-bank subsidiaries									(5,135)	1,275	1,163
Net Income									16,679	17,136	15,104
Other Comprehensive Income (Loss):
Net change in unrealized gains/losses on available for sale securities, net of reclassification and tax									(23,675)	3,561	14,441
Change in actuarial gain, net of amortization and tax, for post-employment health care plan, net of tax									(103)	(349)	(485)
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of tax									409	(49)	(522)
Total other comprehensive income (loss)									(23,369)	3,163	13,434
Comprehensive income (loss)									$ (6,690)	$ 20,299	$ 28,538

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Fair Value - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Commercial Mortgages [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis	$ 3,000	$ 8,422
Commercial, Industrial, and Agricultural [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis	3,706	1,973
Residential Real Estate [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis		402
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial Mortgages [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial, Industrial, and Agricultural [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Residential Real Estate [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis		0
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgages [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis	0	0
Significant Other Observable Inputs (Level 2) [Member] | Commercial, Industrial, and Agricultural [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis	0	0
Significant Other Observable Inputs (Level 2) [Member] | Residential Real Estate [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis		0
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgages [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis	3,000	8,422
Significant Unobservable Inputs (Level 3) [Member] | Commercial, Industrial, and Agricultural [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis	3,706	1,973
Significant Unobservable Inputs (Level 3) [Member] | Residential Real Estate [Member]
Impaired loans:
Fair value assets and liabilities measured on a nonrecurring basis		$ 402

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Loans - Nonaccrual Loans and Loans Past Due over 90 Days Still Accruing Interest by Class of Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	$ 11,573	$ 14,445
Past Due Over 90 Days Still on Accrual	344	357
Commercial, Industrial, and Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,006	3,073
Past Due Over 90 Days Still on Accrual	0	0
Commercial Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	7,236	8,570
Past Due Over 90 Days Still on Accrual	0	109
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	2,389	2,792
Past Due Over 90 Days Still on Accrual	150	18
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	942	10
Past Due Over 90 Days Still on Accrual	170	217
Credit Cards [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	0	0
Past Due Over 90 Days Still on Accrual	$ 24	$ 13

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Summary of Premises and Equipment

The following summarizes premises and equipment at December 31, 2013 and 2012:

	2013		2012
Land	$	4,412	$	4,126
Premises and leasehold improvements		28,764		25,670
Furniture and equipment		20,248		17,522
Construction in process		3,924		408
		57,348		47,726
Less: accumulated depreciation		25,759		23,654
Premises and equipment, net	$	31,589	$	24,072

Summary of Minimum Annual Rental Commitments Under Operating Lease

The minimum annual rental commitments under these leases at December 31, 2013 are as follows:

2014	$	630
2015		617
2016		592
2017		426
2018		207
Thereafter		1,169
	$	3,641

Summary of Minimum Annual Rental Commitments Under Sale Lease Back

The minimum annual rental commitments under this lease at December 31, 2013 are as follows:

2014	$	112
2015		112
2016		112
2017		112
2018		112
Thereafter		893
	$	1,453

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Interest Rate Swaps

12 Months Ended

Dec. 31, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Interest Rate Swaps

12.  Interest Rate Swaps

On May 3, 2011, the Corporation executed an interest rate swap agreement with a 5 year term and an effective date of September 15, 2013 in order to hedge cash flows associated with $10 million of a subordinated note that was issued by the Corporation during 2007 and elected cash flow hedge accounting for the agreement. The Corporation’s objective in using this derivative is to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2013 to September 15, 2018 without exchange of the underlying notional amount. At December 31, 2013, the variable rate on the subordinated debt was 1.79% (LIBOR plus 155 basis points) and the Corporation was paying 5.57% (4.02% fixed rate plus 155 basis points).

On August 1, 2008, the Corporation executed an interest rate swap agreement with a 5 year term and an effective date of September 15, 2008 in order to hedge cash flows associated with $10 million of a subordinated note discussed above. The Corporation’s objective in using this derivative was to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involved the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2008 to the September 15, 2013 maturity date without exchange of the underlying notional amount.

As of December 31, 2013 and 2012, no derivatives were designated as fair value hedges or hedges of net investments in foreign operations. Additionally, the Corporation does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges.

The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012, and 2011:

As of December 31	Liability Derivative
	Balance Sheet	Fair value
	Location	2013	2012
Interest rate contract	Accrued interest and other liabilities	($1,116)	($1,745)
For the Year Ended December 31, 2013	(a)	(b)		(c)	(d)	(e)
Interest rate contract	$409	Interest expense – subordinated debentures		($400)	Other income	$0
For the Year Ended December 31, 2012
Interest rate contract	($49)	Interest expense – subordinated debentures		($390)	Other income	$0
For the Year Ended December 31, 2011
Interest rate contract	($522)	Interest expense – subordinated debentures		($402)	Other income	$0

(a) Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax

(b) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(c) Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)

(d) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

(e) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

Amounts reported in accumulated other comprehensive loss related to the interest rate swap will be reclassified to interest expense as interest payments are made on the subordinated debentures. Such amounts reclassified from accumulated other comprehensive loss to interest expense in the next twelve months are expected to be $378.

As of December 31, 2013 and 2012, a cash collateral balance in the amount of $1,400 and $1,950, respectively, was maintained with the counterparty to the interest rate swaps. These balances are included in interest bearing deposits with other banks on the consolidated balance sheets.

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Income Taxes - Summary of Income Tax Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Current - federal	$ 7,189	$ 6,535	$ 4,951
Current - state	128	116	137
Deferred - federal	(977)	(240)	441
Income tax expense	$ 6,340	$ 6,411	$ 5,529