CNB Financial Corporation and ESSA Bancorp, Inc. jointly announced a definitive agreement for ESSA to merge with and into CNB, with ESSA Bank & Trust merging into CNB Bank. This all-stock transaction is valued at approximately $214 million, or $21.10 per ESSA share, based on CNB's 10-day volume weighted average stock price of $24.69 as of January 8, 2025.
Under the terms, ESSA shareholders will receive 0.8547 shares of CNB common stock for each outstanding ESSA common share. The combined entity is projected to have approximately $8 billion in total assets, $7 billion in total deposits, and $6 billion in total loans, significantly expanding CNB's scale.
ESSA operates 20 community offices across Northeastern Pennsylvania, including the Lehigh Valley, Greater Pocono, Scranton/Wilkes-Barre, and suburban Philadelphia areas. The merger is expected to close in the third quarter of 2025, subject to shareholder and regulatory approvals, and will see three ESSA directors join the CNB and CNB Bank boards, with ESSA CEO Gary S. Olson also serving as a strategic advisor to CNB’s Chief Executive Officer.
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