Company: CCNE
Filing Date: 2025-03-03
Form Type: S-4/A
Source: 0001193125-25-044149
Chunk: 206

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-03
Form: S-4/A
Chunk 206
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1977, as amended, will also note and consider the record of performance of CNB Bank and ESSA Bank in meeting the credit needs of the entire community, including low and moderate-income neighborhoods. An unsatisfactory record may form the basis for denial or conditional approval of an application. Pennsylvania Department of Banking and Securities Pursuant to Chapter 16 of the Pennsylvania Banking Code of 1965, as amended, a merger that will result in a Pennsylvania state-chartered institution must be approved by the PADOBS and under Section 115 of the Pennsylvania Banking Code, as amended, an acquisition of a Pennsylvania bank by a bank holding company must also be approved by the PADOBS. Therefore, the PADOBS must approve both the holding company merger and the bank merger. In every proposed merger transaction the PADOBS must consider, among other things, whether the proposed transaction adequately protects the interests of depositors, other creditors and shareholders. The PADOBS also must consider whether the proposed transaction would be consistent with adequate and sound banking and in the public interest on the basis of the financial history and condition of the parties, their prospects, the character of their management, the potential effect of the merger or consolidation on competition and the convenience and needs of the area primarily to be served by the resulting institution. Federal Reserve Bank of Philadelphia CNB will seek a waiver from the Federal Reserve Bank of Philadelphia (acting on delegated authority from the Board of Governors of the Federal Reserve System) from application requirements associated with the holding company merger pursuant to 12 CFR 225.12(d)(2), which authorizes the Federal Reserve Bank of Philadelphia to waive application requirements associated with bank holding company mergers and a bank holding company acquiring a new subsidiary bank if the holding company transaction will occur simultaneously with the bank merger, and certain other conditions are met, including that the bank merger will be approved by the FDIC under the Bank Merger Act. If the Federal Reserve Bank of Philadelphia does not provide this waiver, CNB will seek the requisite approval from the Federal Reserve Bank of Philadelphia to consummate the merger. Accounting Treatment of the Merger The merger will be accounted for using the acquisition method of accounting with CNB treated as the acquirer. Under this method of accounting, ESSA’s assets and liabilities will be recorded by CNB at their respective fair 152

values as of the closing date of the merger and added to those of CNB. Any excess of purchase price over the net fair values of ESSA’s assets and liabilities will be recorded