Company: CCNE
Filing Date: 2025-03-03
Form Type: S-4/A
Source: 0001193125-25-044149
Chunk: 50

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-03-03
Form: S-4/A
Chunk 50
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and unanticipated additional recruitment costs. In addition, following the merger, if key employees terminate their employment, the combined company’s business activities may be adversely affected, and management’s attention may be diverted from successfully hiring suitable replacements, all of which may cause the combined company’s business to suffer. CNB and ESSA also may not be able to locate or retain suitable replacements for any key employees who leave either company. 27

Issuance of shares of CNB common stock in connection with the merger may adversely affect the market price of CNB common stock.

In connection with the payment of the merger consideration, CNB expects to issue approximately million shares of CNB common stock to ESSA shareholders. The issuance of these new shares of CNB common stock may result in fluctuations in the market price of CNB common stock, including a stock price decrease.

As a result of the merger, the combined company will become subject to additional requirements and restrictions imposed by the United States of America.

On May 30, 2023, ESSA Bank entered into a consent order with the United States of America, as approved by the United States District Court for the Eastern District of Pennsylvania, Civil Action No. 23-cv-2065l (the “ESSA Consent Order”) to resolve allegations of violations of the Fair Housing Act and Equal Credit Opportunity Act within the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical area.

The ESSA Consent Order requires ESSA Bank to, among other things, (i) invest a minimum of $2.92 million in a loan subsidy fund to increase credit opportunities to residents of majority-Black and Hispanic census tracts in ESSA Bank’s lending area, and (ii) devote a minimum of $125,000 on community partnerships and $250,000 toward advertising, outreach, consumer financial education, and credit counseling focused on majority-Black and Hispanic census tracts within ESSA Bank’s lending area. In addition, ESSA Bank must continue to maintain the positions of the two new mortgage loan officers hired pursuant to the ESSA Consent Order in its existing branches in West Philadelphia and its full-time Community Development Officer position to oversee these efforts throughout the term of the ESSA Bank Consent Order.

As required by the terms of the ESSA Consent Order, CNB Bank, as the resulting institution in the bank merger, has agreed to and will assume all obligations under the ESSA Consent Order in connection with the bank merger.