Company: CCNE
Filing Date: 2025-02-20
Form Type: S-4
Source: 0001193125-25-030821
Chunk: 148

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-02-20
Form: S-4
Chunk 148
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 “ESSA M&A Committee”) to review matters relating to mergers and acquisition activity and provide guidance in between board meetings, as needed. During this time period, and prior to the initial discussions with CNB that led to the negotiation of the merger agreement, ESSA (or its financial advisor on behalf of ESSA) had discussions with one regional bank holding company and six community bank holding companies regarding a possible strategic business combination. Following preliminary discussions, five of the community bank holding companies declined to proceed any further with respect to a possible business combination with ESSA. No confidentiality or other agreements were entered into with these entities.

In December 2022, ESSA entered into a mutual confidentiality agreement with a community bank holding company (“Company A”) and the parties entered into a non-binding indication of interest in January 2023. The mutual confidentiality agreement included certain standstill provisions (in effect for 18 months) prohibiting Company A 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. The non-binding indication of interest proposed an all stock merger transaction. At the time of the receipt of the non-binding indication of interest, the market value of the exchange ratio proposed by Company A ranged from $21.06 to $22.60 per share of ESSA common stock. The indication of interest proposed that four ESSA directors, including Gary Olson, be appointed to the board of directors of Company A and its banking subsidiary. It also 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 (“