Company: CCNE
Filing Date: 2025-02-20
Form Type: S-4
Source: 0001193125-25-030821
Chunk: 205

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-02-20
Form: S-4
Chunk 205
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 company merger will qualify as a reorganization. Provided the holding company merger qualifies as a reorganization within the meaning of Section 368(a) of the Code, the U.S. federal income tax consequences of the holding company merger will be as follows:

| • |     | except with respect to cash received in lieu of a fractional share of CNB common stock, no gain or loss will be recognized by U.S. holders who exchange all of their ESSA common stock for CNB common stock pursuant to the holding company merger. A U.S. holder of ESSA common stock who receives cash instead of a fractional share of CNB common stock will be treated as having received the fractional share pursuant to the holding company merger and then as having exchanged the fractional share for cash in a redemption by CNB. As a result, such U.S. holder of ESSA common stock will generally recognize gain or loss equal to the difference between the amount of cash received and the basis in his or her fractional share interest. This gain or loss generally will be capital gain or loss, and will be long-term capital gain or loss if, as of the effective time of the holding company merger, the holding period for the fractional share (which will include the holding period of ESSA common stock surrendered therefor) is greater than one year. In general, long-term capital gains |

150

| for non-corporate taxpayers may be eligible for a reduced rate of taxation. The deductibility of capital losses is subject to limitations; |

| • |     | the aggregate tax basis in the CNB common stock received by an ESSA shareholder pursuant to the holding company merger (including any fractional share of CNB common stock deemed received and sold for cash as described above) will equal that shareholder’s aggregate tax basis in the shares of ESSA common stock that are exchanged therefor; and |

| • |     | the holding period of CNB common stock received by an ESSA shareholder in the holding company merger (including any fractional share of CNB common stock deemed received as described above) will include the holding period of the shares of ESSA common stock that are exchanged therefor. |

If ESSA shareholders acquired different blocks of ESSA common stock at different times and at different prices, a holder’s tax basis and holding period in CNB common stock may be determined with reference to each block of ESSA common stock. Backup Withholding Payments of cash to an ESSA shareholder pursuant to the holding company merger are