Company: CCNE
Filing Date: 2025-03-03
Form Type: S-4/A
Source: 0001193125-25-044149
Chunk: 149

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-03
Form: S-4/A
Chunk 149
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 included an exclusivity provision whereby ESSA agreed not to enter into or solicit negotiations with another party with respect to an acquisition of ESSA. Over the course of several months, due diligence and discussions took place between the parties. In the first quarter of 2023, rising interest rates, market speculation as to financial trouble at several regional banks and the ultimate failure of several FDIC insured banks in early March 2023

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created significant market turmoil and triggered a sharp decline in bank stock prices. The value of the exchange ratio declined to as low as between $17.41 and $18.69 per share, and Company A indicated that the exchange ratio would be decreased. The parties discontinued discussions and negotiations in August 2023, and the exclusivity restrictions applicable to ESSA expired.

In March 2024, ESSA received a non-binding letter of intent from a regional bank holding company (“Company B”) that proposed an all stock merger transaction. Based on the closing market price of Company B’s common stock on the date of the letter of intent, the exchange ratio range proposed by Company B had a value of between $21.03 and $21.33 per share. Company B and ESSA had previously entered into a mutual confidentiality agreement, which also included certain standstill provisions (in effect for 18 months) prohibiting Company B company from proposing or seeking to acquire ESSA other than through the indication of interest process, which prohibitions terminated once ESSA entered into an agreement to be acquired by a third party. At the end of April 2024, Company B withdrew its indication of interest, as it was pursuing an alternative acquisition opportunity. The mutual confidentiality agreement with Company B, together with its standstill provisions, expired at or around this time.

In accordance with directives from ESSA, ESSA’s financial advisor, PNC FIG Advisory, contacted Michael Peduzzi, President and Chief Executive Officer of CNB, in late July or early August 2024 to solicit CNB’s interest in considering a possible business combination with ESSA. Mr. Peduzzi indicated that there could be interest and suggested that Mr. Olson, President and Chief Executive Officer of ESSA, contact him directly by phone. Messrs. Olson and Peduzzi had known each other for many years based on their involvement in the Pennsylvania banking industry. In the first week of August 2024, Mr. Olson telephoned Mr. Peduzzi, and informed him