Company: CCNE
Filing Date: 2025-03-03
Form Type: S-4/A
Source: 0001193125-25-044149
Chunk: 150

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-03
Form: S-4/A
Chunk 150
---
 that ESSA was looking for a strategic partner and would consider a business combination with CNB. During the call, Mr. Peduzzi indicated that CNB would be willing to explore a possible transaction with ESSA and would engage Stephens Inc. (“Stephens”) as a financial advisor to CNB. Messrs. Olson and Peduzzi agreed that the next step would be for the parties to enter into a non-disclosure agreement to allow for further discussion. After the call, Mr. Peduzzi briefed CNB Chairperson Jeffrey Powell on his discussion with Mr. Olson, including CNB’s engagement of Stephens as a financial adviser. ESSA and CNB entered into a mutual confidentiality agreement dated as of August 13, 2024.

CNB subsequently requested that representatives from Stephens prepare a financial analysis related to a prospective merger with ESSA. Following receipt of such analysis in the first week of August 2024, which reflected notable EPS accretion and other franchise growth benefits, and subject to a comprehensive due diligence review and the negotiation of deal terms, after discussion with Mr. Powell, CNB management determined to further pursue a potential business combination with ESSA.

At a regularly scheduled meeting of the ESSA Board of Directors on August 27, 2024, Mr. Olson advised the ESSA Board of Directors of the discussions he had with Mr. Peduzzi. At this meeting, representatives of PNC FIG Advisory provided a financial overview of CNB and an illustrative financial overview of a potential combination of the two companies based on an all stock merger transaction with a deal price of $21.00 per share of ESSA common stock, which translated into an exchange ratio of 0.942 shares of CNB common stock for each share of ESSA common stock, based on the market price of CNB common stock. Following review and discussion, the ESSA Board of Directors determined to continue discussions with CNB regarding a strategic merger.

On September 10, 2024, during an executive session following a regularly scheduled meeting of the CNB Board of Directors, the CNB Board of Directors and the executive management team received a presentation from representatives of Stephens outlining the key considerations for evaluating a prospective transaction between CNB and ESSA. The CNB Board of Directors authorized Mr. Peduzzi to continue evaluating a prospective transaction with ESSA. Following the meeting, Mr. Peduzzi contacted a representative of PNC FIG Advisory and indicated that CNB was interested in further pursuing a