Company: CCNE
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0000736772-25-000071
Chunk: 80

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-06
Form: 10-K
Item: Item 7
Chunk 80
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Premises and Equipment

During the years ended December 31, 2024 and 2023, the Corporation invested $16.3 million and $10.8 million, respectively, in its physical infrastructure through the purchase of land, buildings, and equipment.

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 BOLI assist the Corporation in offsetting its benefit costs. The Corporation made no purchases of BOLI during the years ended December 31, 2024 and December 31, 2023.

Funding Sources

Deposits

The Corporation’s sources of funds are deposits, borrowings, amortization and repayment of loan principal, interest earned on or maturation of investment securities, and funds provided from operations. The Corporation considers deposits to be its primary source of funding in support of growth in assets.

December 31, 2024Percent of Deposits in Each Category to Total DepositsDecember 31, 2023Percent of Deposits in Each Category to Total DepositsPercentage change2024 vs. 2023Noninterest-bearing demand deposits$819,680 15.26 %$728,881 14.58 %12.5%Interest-bearing demand deposits706,796 13.16 803,093 16.07 (12.0)Savings3,122,028 58.12 2,960,282 59.22 5.5Certificates of deposit722,860 13.46 506,494 10.13 42.7Total$5,371,364 100.00 %$4,998,750 100.00 %7.5%

At December 31, 2024, total deposits were $5.4 billion, reflecting an increase of $372.6 million, or 7.45%, from December 31, 2023. The increase in deposits was due to continued growth in the Corporation's treasury management customer base and resulting increases in municipal and institutional/corporate deposits, including wealth and asset management deposit relationships resulting from CNB's participation in deposit insurance sharing programs. 

The following table sets forth the average balances of and the average rates paid on deposits for the period indicated. 

 Year Ended December 31, 202420232022 AverageAmountAnnualRateAverageAmountAnnualRateAverageAmount