ESSA Bancorp shareholders approve merger with CNB Financial

Published 15/04/2025, 21:24
ESSA Bancorp shareholders approve merger with CNB Financial

ESSA Bancorp (NASDAQ:ESSA), Inc. (market cap: $176.84 million), a Pennsylvania-based savings institution trading at $17.42 per share, reported in an 8-K filing with the Securities and Exchange Commission (SEC) that its shareholders approved a merger with CNB Financial Corporation. The decision took place during a Special Meeting of Shareholders on Tuesday, with a majority voting in favor of the agreement that was initially announced on January 9, 2025. According to InvestingPro data, ESSA currently trades below its book value with a P/B ratio of 0.77.

The merger proposal, which will see ESSA Bancorp merge into CNB with CNB as the surviving entity, received 7,497,798 votes for, 535,187 against, and 90,852 abstentions. Additionally, the merger will result in ESSA Bank & Trust merging into CNB Bank. This move was supported by shareholders, with a total of 8,856,349 shares represented at the meeting, indicating a quorum.

In addition to the merger, shareholders also approved on an advisory basis the compensation that may be payable to the named executive officers of ESSA Bancorp in connection to the merger. This proposal received 4,545,908 votes for, 3,431,803 against, and 146,126 abstentions.

Furthermore, a third proposal to approve adjournments of the Special Meeting, if necessary, to permit further solicitation of proxies if there were insufficient votes to approve the merger proposal, was also passed. This proposal saw 8,070,374 votes for, 753,073 against, and 32,902 abstentions. However, the adjournment was not necessary as the merger proposal had already been approved.

The 8-K filing also included cautionary statements regarding forward-looking information. It cited potential risks and uncertainties that could affect the anticipated benefits of the merger, such as integration challenges, cost savings not being fully realized, and possible business disruptions.

This SEC filing is a significant step in the merger process between ESSA Bancorp and CNB Financial Corporation, which will combine the resources and operations of both entities. The information is based on a press release statement from ESSA Bancorp. The merger is subject to customary closing conditions and regulatory approvals.

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

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