CNB Financial and ESSA Bancorp receive regulatory approvals for merger

CLEARFIELD, PA - CNB Financial Corporation (NASDAQ:CCNE), a profitable regional bank with a market capitalization of $477 million and a 32-year track record of consistent dividend payments, and ESSA Bancorp Inc. (NASDAQ:ESSA) announced Monday they have received the necessary regulatory approvals to proceed with their proposed merger. According to InvestingPro analysis, CNB currently trades near its Fair Value, with a healthy P/E ratio of 9.84 and an attractive dividend yield of 3.15%.

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 transaction, originally announced on January 9, 2025, is structured as an all-stock deal and is expected to close on July 23, 2025, subject to customary closing conditions.

"This marks an exciting milestone as we bring together two strong institutions with shared values," said Michael D. Peduzzi, President and Chief Executive Officer of CNB, in a press release statement.

Gary Olson, President and Chief Executive Officer of ESSA, noted that joining CNB "will benefit our customers and communities" through an "elevated suite of financial products and services."

The merger will combine CNB’s approximately $6.3 billion in consolidated assets with ESSA’s $2.2 billion. CNB currently operates 55 full-service offices across Pennsylvania, Ohio, New York, and Virginia, while ESSA maintains 19 community offices throughout the greater Pocono, Lehigh Valley, Scranton/Wilkes-Barre, and suburban Philadelphia areas.

The combined organization will maintain the CNB name and continue to provide banking services across the expanded footprint.

In other recent news, CNB Financial Corporation and ESSA Bancorp Inc. have received all necessary regulatory approvals for their proposed merger. This all-stock transaction, initially announced in January 2025, is expected to close in July 2025, pending customary closing conditions. In analyst updates, Keefe, Bruyette & Woods maintained a Market Perform rating on CNB Financial with a price target of $27.00, noting that while the company’s first-quarter earnings per share exceeded Keefe’s own estimates, they fell short of broader market expectations. The anticipated acquisition of ESSA by CNB Financial is reportedly on track to be finalized in the third quarter of 2025. Additionally, Institutional Shareholder Services Inc. has recommended that CNB Financial’s shareholders vote in favor of key proposals, including the issuance of CNB common stock for the merger with ESSA Bancorp at the upcoming Annual Meeting of Shareholders. The meeting will also cover the approval of the 2025 Omnibus Incentive Plan and executive compensation. These developments come as CNB Financial continues to operate through its principal subsidiary, CNB Bank, with consolidated assets of approximately $6.2 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.