Company: CCNE
Filing Date: 2025-04-09
Form Type: 425
Source: 0001193125-25-076836
Chunk: 8

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-04-09
Form: 425
Chunk 8
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11.73%.

| Risk-free rate      |     |  4.59 | %  |
| Equity risk premium |     |  5.00 | %  |
| Size premium        |     |  3.29 | %  |
| Industry premium    |     | (1.15 | )% |

Source: Kroll Cost of Capital Navigator. 11. The disclosure under the heading “The Merger — Opinion of ESSA’s Financial Advisor — Discounted Cash Flow Analysis of CNB” is hereby amended by deleting that disclosure on page 141 of the joint proxy statement/prospectus and replacing it in its entirety with the following disclosure: PNC FIG Advisory performed a discounted cash flow analysis to estimate a range for the implied equity value of CNB common stock based on the present value of implied future dividends over a seven-year period and implied terminal values at the end of such period. In this analysis, PNC FIG Advisory assumed discount rates of 8.5%, 10.5% and 12.5% and calculated terminal values of 10.0x and 13.0x earnings at the end of seven years, which terminal value multiples were selected based on PNC FIG Advisory’s professional judgment and taking into account the results of the Selected Company Analysis of CNB described above. PNC FIG Advisory used research analysts’ estimates for CNB in calendar years 2025 and 2026 and long-term growth rate and other assumptions for CNB provided to PNC FIG Advisory by the management of CNB. This analysis indicated an implied present value range of CNB common stock of $20.85 per share to $33.18 per share, which are 8.9x and 14.2x, respectively, of CNB’s earnings per share for the 12 months ended September 30, 2024 and 87% and 138%, respectively, of CNB’s tangible book value per share as of September 30, 2024. In assuming discount rates of 8.5%, 10.5% and 12.5% for this discounted cash flow analysis, PNC FIG Advisory calculated the sum of the risk-free rate, the equity risk premium, the applicable size premium and the industry premium as described below from the Kroll Cost of Capital Navigator. This discount rate calculation for CNB common stock indicated a calculated discount rate of 10.43%.

| Risk-free rate      |     |  4.59 | %