Company: CCNE
Filing Date: 2025-03-03
Form Type: S-4/A
Source: 0001193125-25-044149
Chunk: 152

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-03
Form: S-4/A
Chunk 152
---
 September 23, 2024. Representatives from Stephens then provided an updated model outlining the proposed transaction and a representative from Hogan Lovells US LLP (“Hogan Lovells”) reviewed a draft letter of intent with the CNB Board of Directors, addressing the various topics concerning CNB’s proposed acquisition. The CNB Board of Directors authorized Mr. Peduzzi to deliver the letter to ESSA.

On October 16, 2024, CNB submitted a non-binding indication of interest for an all stock merger transaction with ESSA. CNB proposed an exchange ratio of 0.8547 shares of CNB common stock for each share of ESSA common stock, which equated to merger consideration of $21.00 per share of ESSA common stock based on the trading price of CNB common stock at the time. The non-binding indication of interest proposed adding two ESSA directors to the boards of directors of CNB and CNB Bank and stated that CNB intended to enter into an agreement with Gary Olson to serve as a strategic advisor to CNB’s Chief Executive Officer and that CNB would consider retaining Peter Gray, chief operating officer of ESSA, as president of the post-closing ESSA Bank division of CNB Bank. The non-binding indication of interest also included an exclusivity provision whereby ESSA would agree not to enter into or solicit negotiations with another party with respect to an acquisition of ESSA for a 60 day period.

At a regularly scheduled meeting of the ESSA Board of Directors on October 22, 2024, the ESSA Board of Directors reviewed CNB’s non-binding indication of interest. Representatives of PNC FIG Advisory reviewed the financial aspects of the proposed offer from CNB. Luse Gorman, PC, counsel to ESSA (“Luse Gorman”), reviewed the material terms of the non-binding indication of interest, and discussed the fiduciary duties of the ESSA Board of Directors in connection with a merger transaction. The ESSA Board of Directors discussed proposed revisions to the non-binding indication of interest to provide for three ESSA directors to be added to the boards of directors of CNB and CNB Bank, to specify that those directors would be Messrs. Selig, Henning and Olson, and to provide that CNB would waive or amend any mandatory retirement age requirements applicable to board service to allow for these board appointments.

<div align='center'>114</div>

Following the October 22, 202