CNB Financial Corporation (CCNE) entered a merger agreement on January 10, 2025, to acquire ESSA Bancorp, Inc. (ESSA) in an all-stock deal valued at $214 million.
Under the terms of the agreement, ESSA shareholders will receive 0.8547 shares of CNB common stock for each share of ESSA, which values ESSA at approximately $21.10 per share, representing a 13.26% premium from the stock’s last close.
ESSA Bancorp is a bank holding company for ESSA Bank & Trust, providing a range of financial services including banking, loans, insurance, asset management, and investment services to individuals, families, and businesses in Pennsylvania.
CNB Financial is a financial holding company that operates CNB Bank, offering a wide range of banking services including loans, wealth management, trust services, and insurance across Pennsylvania, Ohio, New York, and Virginia.
The deal will also merge the subsidiaries of the two companies, ESSA Bank and CNB Bank. The new company is expected to have about $8 billion in total assets, $7 billion in total deposits, and $6 billion in total loans.
As part of the merger agreement, CNB and CNB Bank will each add three directors from ESSA to their boards. Gary Olson, ESSA’s current CEO, Robert Selig Jr., ESSA’s current Chairman, and Daniel Henning, an ESSA Director, will join both the CNB and CNB Bank boards after the merger. Additionally, Olson will serve as a strategic advisor to CNB’s CEO, and CNB will create a Board of Advisors for the ESSA Bank division.
The deal, expected to be completed in the third quarter of 2025, will expand CNB’s services into eastern Pennsylvania and the greater Lehigh Valley market.
PNC FIG Advisory and Luse Gorman acted as financial and legal advisors to ESSA, while Stephens provided financial advice and Hogan Lovells US offered legal counsel to CNB Financial.
CNB Financial is paying 0.80 times the book value for ESSA Bancorp.
For a more comprehensive breakdown of this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of ESSA Bancorp, Inc. (ESSA) by CNB Financial Corporation (CCNE)
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.
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Editor’s Note: Baranjot Kaur contributed to this article