Company: CCNE
Filing Date: 2025-01-10
Form Type: 425
Source: 0001193125-25-004105
Chunk: 137

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-01-10
Form: 425
Chunk 137
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’s ESOP. (2) Transaction multiples based on deal value after ESOP loan paydown. (3) ESSA GAAP 2024 net income plus fully phased-in cost savings, purchase accounting accretion, and all other merger-related adjustments.

Model Assumptions Detail (Cont.) (1) • Gross credit markdown of $23.5 million (excluding CECL Double Count of $15.3 million) or 1.3% of ESSA’s HFI loans , and 154% of ESSA’s loan loss reserves − $8.2 million (35%) allocated to purchase credit deteriorated (PCD) loans Credit Mark − $15.3 million (65%) allocated to Non-PCD loans (accreted into earnings over 6 years, sum-of-years digits) • Day-two estimated CECL reserve of $15.3 million (CECL Double Count) (1) • Total credit mark inclusive of CECL Double Count of $38.8 million ($23.5 million plus $15.3 million) or 2.2% of ESSA’s HFI loans (1) • $94.2 million pre-tax markdown, or 5.4% of ESSA’s HFI loans (accreted over 6 years, sum-of-years digits) • $5.9 million pre-tax markdown on HTM securities (accreted over 4 years, straight-line) Interest Rate Marks (2) • ESSA's AFS securities-related AOCI of ($7.7) million after-tax, accreted through Pro Forma earnings over 4 years (straight-line) • $0.4 million pre-tax markdown on time deposits (amortized over 1 year, straight-line) Core Deposit • $31.4 million core deposit intangible (CDI) created, or 3.0% of ESSA’s non-time deposits Intangibles • Amortized over 10 years, sum-of-years digits methodology Created • Estimated pre-tax cost savings of $19.7 million (fully-phased in) / $15.6 million after-tax, based on ESSA 2025E operating expenses Cost Savings & Merger • Approximately 40% of ESSA's operating expenses (50% expected to be realized in 2025 and 100% thereafter) Charges • Pre-tax merger-related charges of $27.6 million (fully reflected in Pro Forma TBV dilution at