Company: CCNE
Filing Date: 2025-01-10
Form Type: 425
Source: 0001193125-25-004105
Chunk: 136

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-01-10
Form: 425
Chunk 136
---
A share of $21.10 • Price / TBV: 0.99x (Pay-to-Trade Ratio: 96%) Deal Value & Key (2) • Price / LTM GAAP Earnings multiples : Transaction Multiples− Standalone ESSA: 12.2x − Plus Cost Saves: 6.2x (3) − Fully Synergized Earnings: 4.0x • Research analyst consensus estimates used for CNB − 2025 Net income to common of $53.7 million (ROAA of ~93bps) − 2026 Net income to common of $60.1 million (ROAA of ~97bps) • ESSA earnings forecast per CNB management − Combination of a declining rate forecast (aligned with bank industry research analyst consensus models) and a flat rate environment (higher-for-longer view) Standalone Forecasts − Forecast is inclusive of balance sheet re-positioning strategies anticipated to take place at the closing and begin impacting the P&L in H2 2025 − 2025 Net income to common of $17.8 million (NIM in 3.1% area; ROAA of ~82bps) − 2026 Net income to common of $18.3 million (NIM in 3.1% area; ROAA of ~80bps) − NIM and ROA increase to 3.3% area and mid-to-high 90bps area, respectively, by 2027 and held flat thereafter − 5% asset growth CAGR from year end 2024 to 2027; mid-to-high single digit annual asset growth in 2026 & beyond • Transaction and Pro Forma branch footprint enables a unique opportunity to re-position the combined balance sheet Balance Sheet • Several strategies contemplated and modeled by the management team, including: Re-positioning − Combination of branch consolidations and divestitures contemplated; potential of 3 or more office closures and up to ~$200 million loans and ~$100 million deposits divested Source: Company documents; FactSet; Bloomberg. Note: Median research analyst consensus estimates are as of 1/8/2025. (1) Assumes CCNE issuance price of $24.69 per share (10-day VWAP as of 1/8/2025) and ESSA common shares of 10,154,814 (inclusive of unvested common 16 stock equivalents) less 369,440 shares required to eliminate ESSA