Company: CCNE
Filing Date: 2025-02-20
Form Type: S-4
Source: 0001193125-25-030821
Chunk: 176

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-02-20
Form: S-4
Chunk 176
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 within a reasonable time frame, particularly in light of the fact that CNB has merger integration experience due to successfully completed acquisitions and data processing conversions; |

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| • |     | the expectation that the transaction will be generally tax-free for United States federal income tax purposes to ESSA’s shareholders; |

| • |     | the fact that the implied value of the merger consideration of $21.10 per share of ESSA common stock, based on the ten-day volume weighted average stock price of $24.69 for CNB common stock as of January 8, 2025; |

| • |     | the fact that ESSA’s shareholders will have the opportunity to vote to approve the merger agreement and transactions contemplated thereby; |

| • |     | its review with its legal advisors of the terms of the merger agreement, including the representations, covenants, conditions and deal protection and termination provisions; |

| • |     | the right of the ESSA Board of Directors under the merger agreement to withdraw or modify its recommendation to ESSA shareholders that they approve the merger proposal under certain circumstances; and |

| • |     | the right of ESSA to terminate the merger agreement under certain circumstances, as more fully described under the section entitled “The Merger Agreement—Termination” beginning on page 168. |

The ESSA Board of Directors also considered the potential risks associated with the transaction. The ESSA Board of Directors concluded that the anticipated benefits of combining with CNB were likely to outweigh these risks substantially. These potential risks included:

| • |     | the diversion of management focus and resources from other strategic opportunities and operational matters while working to implement the merger transaction and integrate the two companies; |

| • |     | the possibility of the combined company encountering difficulties in achieving cost savings and synergies in the amounts currently estimated or within the timeframe currently contemplated; |

| • |     | the possibility of encountering difficulties in successfully integrating the businesses, operations and workforces of ESSA and CNB; |

| • |     | the possibility that the merger and the related integration process could result in the loss of key employees, in the disruption of ESSA’s ongoing business and in the loss of customers for the combined company; |

| • |     | the substantial costs to be incurred in connection with the merger, including the costs of integrating the businesses of ESSA and CNB, transaction fees, expenses and other payments that will or may arise from the merger; |

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