b'Nonperforming/Nonaccrual Assets: Nonperforming/nonaccrual assets consist of loans on which interest is no longer accrued, loans which have been restructured in order to allow the borrower the ability to maintain control of the collateral, real estate acquired by foreclosure and real estate upon which deeds in lieu of foreclosure have been accepted.Interest previously accrued but not collected on nonaccrual loans is reversed against current income when a loan is placed on a nonaccrual basis.Nonaccrual loans are restored to accrual status when all delinquent principal and interest have been paid and the loan remains current for six consecutive months.A loan modification constitutes a troubled debt restructuring when CNB concludes that both of the following exist: (a) the restructuring constitutes a concession; and (b) the debtor is experiencing financial difficulties. See presentation of the disclosure in Note 4 to the Consolidated Financial Statements.Loans and Leases Receivable: Loans and leases receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances reduced by any charge-offs or specific valuation accounts and net of any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans.Loan Origination Fees and Costs: Loan origination fees, net of certain direct costs of originating loans are being deferred and recognized over the contractual life of the loan as an adjustment of the yield on the related loan.Premises and Equipment:Premises and equipment are carried at cost less accumulated depreciation.Depreciation is calculated on the straight-line method over the estimated useful lives of 5 to 50 years for buildings and improvements, 10 to 20 years for land improvements, 8 to 10 years for leasehold improvements, 5 years for bank owned automobiles and 3 to 40 years for equipment.Computer software is being amortized over 3 years.Maintenance and repairs are charged to operating expenses as incurred.Income Taxes:Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax bases of assets and liabilities using the enacted marginal tax rate.Deferred income tax expenses or credits are based on the changes in the asset or liability from period to period.As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.See Note 18 to the Consolidated Financial Statements.When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.Tax positions taken are not offset or aggregated with other positions.Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.Pension Plan: Pension plan costs are funded by annual contributions as required by applicable regulations.As discussed further in Note 12 to the Consolidated Financial Statements, the plan was amended effective July 31, 2016 to restrict participation to employees eligible as of the date the plan was frozen and to revise the benefit calculation methodology.8'