Company: CCNE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000736772-25-000071
Chunk: 184

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-06
Form: 10-K
Item: Item 8
Chunk 184
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,804 

107

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 not materially different than amortized cost at December 31, 2024 and 2023, respectively. No valuation allowance was deemed necessary at December 31, 2024, 2023, and 2022. The fair value of interest rate lock commitments and forward commitments to sell loans were not material at December 31, 2024 or 2023.

6.  Premises and Equipment

The following summarizes premises and equipment at December 31, 2024 and 2023:December 31, 2024December 31, 2023Land$9,043 $9,043 Premises and leasehold improvements92,269 87,591 Furniture and equipment48,833 45,703 Construction in process1,965 2,047 152,110 144,384 Less: accumulated depreciation76,099 70,684 Premises and equipment, net$76,011 $73,700 Depreciation on premises and equipment amounted to $5.8 million in 2024, $5.7 million in 2023 and $5.3 million in 2022.

7.  Leases

Operating lease assets represent the Corporation's right to use an underlying asset during the lease term and operating lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Corporation's incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income.The Corporation leases certain full-service branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. The Corporation includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Corporation will