Company: CCNE
Filing Date: 2025-02-20
Form Type: S-4
Source: 0001193125-25-030821
Chunk: 49

Company: CNB FINANCIAL CORP/PA
Filing Date: 2025-02-20
Form: S-4
Chunk 49
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 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 MetropolitanStatistical area. 27

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. Both CNB Bank and ESSA Bank are committed to full compliance with the ESSA Consent Order. However, achieving such compliance could require ESSA Bank, prior to the completion of the bank merger, to expend significant management attention and incur unanticipated costs and expenses. The combined bank could similarly be required to expend significant management attention and incur unanticipated costs and expenses to achieve compliance with the ESSA Consent Order. Actions taken to achieve compliance with the ESSA Consent Order may affect ESSA Bank’s and the combined bank’s business or financial performance and may require ESS