Company: CCNE
Filing Date: 2025-03-03
Form Type: S-4/A
Source: 0001193125-25-044149
Chunk: 148

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-03
Form: S-4/A
Chunk 148
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 they own on the effective date of the merger. ESSA shareholders will also receive cash in lieu of any fractional shares they would have otherwise received in the merger.

See the section entitled “The Merger Agreement” beginning on page 156 for additional information regarding the legal documents that govern the merger, including information about the conditions to the merger and the provisions for terminating or amending the merger agreement.

### Background of the Merger
Over the course of the prior two years, and following discussions regarding long-term strategies, performance, prospects and strategic alternatives in the context of the national and local economic environment, regulatory burdens and the competitive landscape, the ESSA Board of Directors has considered and reviewed potential merger opportunities with strategic partners as a means of delivering value to shareholders. In that regard, the ESSA Board of Directors established a mergers and acquisition committee, consisting of Messrs. Selig, Henning, Hosbach, Olson and Weekes (the “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