CNB and ESSA Bancorp receive regulatory approvals for merger

CLEARFIELD, Pa. - CNB Financial Corporation (NASDAQ:CCNE), currently valued at $477 million with a P/E ratio of 9.84, and ESSA Bancorp Inc. (NASDAQ:ESSA) announced today they have received all necessary regulatory approvals to complete their proposed merger.

The Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities have approved the merger of ESSA Bank & Trust with and into CNB Bank, while CNB received a waiver from the Federal Reserve Bank of Philadelphia for the merger of ESSA with and into CNB.

The all-stock transaction, first announced on January 9, 2025, is expected to close on July 23, 2025, pending customary closing conditions.

"We are pleased to have received the required bank regulatory approvals or waivers to move forward with the merger," said Michael D. Peduzzi, President and CEO of CNB.

Gary Olson, President and CEO of ESSA and ESSA Bank, added, "Joining the CNB family will benefit our customers and communities as they will continue to be served by a combined organization that upholds our shared culture and values."

CNB Financial Corporation currently has consolidated assets of approximately $6.3 billion and operates 55 full-service offices across Pennsylvania, Ohio, New York, and Virginia under various division names including ERIEBANK, FCBank, BankOnBuffalo, and Ridge View Bank. According to InvestingPro, CNB maintains a strong financial profile with a "Good" overall health score and has maintained dividend payments for 32 consecutive years, currently offering a 3.15% yield.

ESSA Bancorp has total assets of $2.2 billion and operates 19 community offices throughout the greater Pocono, Lehigh Valley, Scranton/Wilkes-Barre, and suburban Philadelphia areas.

The announcement was made in a press release statement issued by both companies.

In other recent news, CNB Financial reported its first-quarter earnings per share (EPS) of $0.56, which exceeded the estimates set by Keefe, Bruyette & Woods but did not meet broader market expectations. Analysts from Keefe maintained a Market Perform rating on CNB Financial, with a price target of $27.00, noting that the company’s core pre-provision net revenue was slightly below their forecast due to weaker net loan growth and a compression in the net interest margin. The anticipated acquisition of ESSA by CNB Financial is progressing as planned and is expected to be finalized in the third quarter of 2025. Institutional Shareholder Services Inc. (ISS) has recommended that CNB Financial shareholders vote in favor of several proposals at the upcoming Annual Meeting, including the issuance of CNB common stock for the merger with ESSA Bancorp, Inc. The endorsement from ISS highlights the strategic importance of the merger, which is expected to expand CNB’s footprint. Additionally, ISS supports the approval of the 2025 Omnibus Incentive Plan and the executive compensation package. Shareholders of record as of February 18, 2025, are eligible to vote at the meeting, which will be held via live webcast. CNB Financial has advised shareholders to review the joint proxy statement and cast their votes promptly.

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