CNB Financial Corporation Completes Merger with ESSA Bancorp, Inc.
CNB Financial Corporation (NASDAQ: CCNE) has completed its merger with ESSA Bancorp, Inc. on July 23, 2025. The transaction integrates ESSA Bank & Trust into CNB Bank, with ESSA's offices continuing operations under the ESSA Bank division of CNB Bank. This strategic merger expands CNB's footprint into Northeastern Pennsylvania's Lehigh Valley, increasing its branch network to 78 locations across four states.
As part of the merger, ESSA's leadership joins CNB's governance structure, with three ESSA directors joining CNB's board, including former ESSA CEO Gary S. Olson, who will also serve as a strategic advisor. CNB has established an Advisory Board for the ESSA Bank division to ensure smooth integration and continued community focus.
CNB Financial Corporation (NASDAQ: CCNE) ha completato la fusione con ESSA Bancorp, Inc. il 23 luglio 2025. L'operazione integra ESSA Bank & Trust all'interno di CNB Bank, mantenendo gli uffici ESSA attivi come divisione ESSA Bank di CNB Bank. Questa fusione strategica amplia la presenza di CNB nella Lehigh Valley della Pennsylvania nordorientale, portando la rete di filiali a 78 sedi in quattro stati.
Come parte della fusione, il management di ESSA entra nella struttura di governance di CNB, con tre direttori di ESSA che si uniscono al consiglio di amministrazione di CNB, incluso l'ex CEO di ESSA, Gary S. Olson, che ricoprirà anche il ruolo di consulente strategico. CNB ha istituito un Consiglio Consultivo per la divisione ESSA Bank al fine di garantire un'integrazione fluida e mantenere l'attenzione sulla comunità.
CNB Financial Corporation (NASDAQ: CCNE) ha completado su fusión con ESSA Bancorp, Inc. el 23 de julio de 2025. La transacción integra ESSA Bank & Trust dentro de CNB Bank, manteniendo las oficinas de ESSA operando bajo la división ESSA Bank de CNB Bank. Esta fusión estratégica expande la presencia de CNB en el Valle de Lehigh, en el noreste de Pensilvania, aumentando su red de sucursales a 78 ubicaciones en cuatro estados.
Como parte de la fusión, el liderazgo de ESSA se incorpora a la estructura de gobierno de CNB, con tres directores de ESSA que se unen a la junta directiva de CNB, incluyendo al ex CEO de ESSA, Gary S. Olson, quien también actuará como asesor estratégico. CNB ha establecido un Consejo Asesor para la división ESSA Bank para asegurar una integración fluida y continuar el enfoque comunitario.
CNB Financial Corporation (NASDAQ: CCNE)는 2025년 7월 23일 ESSA Bancorp, Inc.와의 합병을 완료했습니다. 이번 거래로 ESSA Bank & Trust가 CNB Bank에 통합되었으며, ESSA의 지점들은 CNB Bank 내 ESSA Bank 부서로서 운영을 계속합니다. 이 전략적 합병을 통해 CNB는 펜실베이니아 북동부의 리하이 밸리 지역으로 영업망을 확장하여 4개 주에 걸쳐 78개 지점을 갖추게 되었습니다.
합병의 일환으로 ESSA의 경영진이 CNB의 거버넌스 구조에 합류하며, ESSA 출신 이사 3명이 CNB 이사회에 합류합니다. 여기에는 전 ESSA CEO인 Gary S. Olson도 포함되며, 그는 전략 고문 역할도 맡게 됩니다. CNB는 ESSA Bank 부서의 원활한 통합과 지역사회 중심의 지속을 위해 자문위원회를 설립했습니다.
CNB Financial Corporation (NASDAQ : CCNE) a finalisé sa fusion avec ESSA Bancorp, Inc. le 23 juillet 2025. Cette opération intègre ESSA Bank & Trust au sein de CNB Bank, les agences ESSA continuant leurs activités sous la division ESSA Bank de CNB Bank. Cette fusion stratégique étend la présence de CNB dans la vallée de Lehigh, dans le nord-est de la Pennsylvanie, portant son réseau à 78 agences réparties dans quatre États.
Dans le cadre de la fusion, la direction d'ESSA rejoint la structure de gouvernance de CNB, avec trois administrateurs d'ESSA qui intègrent le conseil d'administration de CNB, dont l'ancien PDG d'ESSA, Gary S. Olson, qui assumera également un rôle de conseiller stratégique. CNB a mis en place un conseil consultatif pour la division ESSA Bank afin d'assurer une intégration harmonieuse et un maintien de l'engagement communautaire.
CNB Financial Corporation (NASDAQ: CCNE) hat am 23. Juli 2025 die Fusion mit ESSA Bancorp, Inc. abgeschlossen. Die Transaktion integriert ESSA Bank & Trust in die CNB Bank, wobei die ESSA-Filialen weiterhin unter der Division ESSA Bank der CNB Bank betrieben werden. Diese strategische Fusion erweitert CNBs Präsenz im Lehigh Valley im Nordosten von Pennsylvania und erhöht das Filialnetz auf 78 Standorte in vier Bundesstaaten.
Im Rahmen der Fusion tritt die Führungsebene von ESSA in die Governance-Struktur von CNB ein, wobei drei ESSA-Direktoren dem CNB-Vorstand beitreten, darunter der ehemalige ESSA-CEO Gary S. Olson, der auch als strategischer Berater fungieren wird. CNB hat einen Beirat für die ESSA Bank-Division eingerichtet, um eine reibungslose Integration und den fortgesetzten Fokus auf die Gemeinschaft sicherzustellen.
- None.
- Integration risks and potential challenges in merging operations
- Possible cultural adaptation challenges between the two organizations
Insights
CNB's merger with ESSA expands footprint by 25%, strengthening regional presence and growth potential in attractive Northeast markets.
CNB Financial Corporation has completed its strategic merger with ESSA Bancorp, expanding CNB Bank's branch network into Northeastern Pennsylvania including the Lehigh Valley region. This transaction adds 20 community offices to CNB's footprint, bringing their total to 78 branches across four states - a significant expansion representing approximately a 25% increase in their physical presence.
The merger aligns with CNB's growth strategy by entering vibrant markets in Northeastern Pennsylvania that complement their existing operational focus. By maintaining ESSA's brand identity as a division of CNB Bank, the company appears to be pursuing a thoughtful integration approach that preserves established customer relationships while expanding their market reach.
The governance structure reflects a balanced integration, with three former ESSA leaders joining CNB's board (ESSA's CEO, Chairman, and a Director), plus the formation of an advisory board specifically for the ESSA division. This approach suggests a commitment to maintaining continuity for ESSA stakeholders while bringing valuable regional expertise to CNB's leadership team.
What makes this merger particularly strategic is the cultural alignment mentioned - both organizations share a service-based focus, which typically improves integration outcomes. CNB's CEO specifically mentions this merger as a catalyst for achieving strategic asset and profitability growth objectives, indicating the company expects meaningful financial benefits beyond simple geographic expansion.
CLEARFIELD, Pa., July 24, 2025 (GLOBE NEWSWIRE) -- CNB Financial Corporation (“CNB” or the “Company”) (NASDAQ: CCNE) announced that it completed the merger (“Merger”) of ESSA Bancorp, Inc. (“ESSA”) with and into CNB on July 23, 2025. In connection with the Merger, ESSA’s subsidiary bank, ESSA Bank & Trust, has been merged with and into CNB’s subsidiary bank, CNB Bank, and ESSA’s offices will operate going forward under the brand of ESSA Bank, a division of CNB Bank.
The transaction has extended CNB Bank’s branch network into the Northeastern Region including the Lehigh Valley of Pennsylvania. With the addition of ESSA’s 20 community offices, CNB Bank now has 78 branches across its four-state footprint.
“We are so pleased to welcome ESSA Bank & Trust customers and employees into the CNB family as a result of this merger,” said CNB President and CEO Michael D. Peduzzi. “At CNB, we focus on providing exceptional experiences to our customers, colleagues, and communities. Adding the ESSA markets to our service area, with branches and employees that have a very similar cultural and service-based focus, is a natural extension of our brand and our operating profile. We believe this merger will catalyze greater achievement of our strategic asset and profitability growth objectives by embracing these vibrant markets in Northeastern Pennsylvania. We look forward to building on the relationships ESSA has established with its customers, communities and shareholders as we focus on continuing to support all stakeholders with a smooth and positive transition.”
Consistent with the terms of the merger agreement, Gary S. Olson (ESSA CEO), Robert C. Selig Jr. (ESSA Chairman), and Daniel J. Henning (ESSA Director) will fill 3 new CNB and CNB Bank board seats. Mr. Olson will also have a role as strategic advisor to CNB’s CEO. Additionally, CNB Bank formed an Advisory Board for the ESSA Bank division.
Stephens Inc. served as CNB’s exclusive financial advisor, and Hogan Lovells US LLP served as its legal advisor. Piper Sandler & Co rendered a fairness opinion to CNB’s board. PNC FIG Advisory, part of PNC Capital Markets LLC, served as ESSA’s exclusive financial advisor and rendered a fairness opinion to ESSA’s board, and Luse Gorman, PC served as its legal advisor.
About CNB Financial Corporation
CNB Financial Corporation is a financial holding company with consolidated assets in excess of
Forward Looking Statements
This communication contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements about CNB and ESSA and their industry involve substantial risks and uncertainties. Statements other than statements of current or historical fact, including statements regarding CNB's or ESSA's future financial condition, results of operations, business plans, liquidity, cash flows, projected costs, and the impact of any laws or regulations applicable to CNB or ESSA, are forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should" and other similar expressions are intended to identify these forward-looking statements. Such statements are subject to factors that could cause actual results to differ materially from anticipated results.
Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements include, but are not limited to the following: (i) failure to realize the expected benefits of the merger; (ii) significant transaction costs and/or unknown or inestimable liabilities; (iii) the risk that ESSA's business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (iv) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company following completion of the proposed merger; (v) the dilution caused by CNB's issuance of additional shares of its capital stock in connection with the merger; (vi) national, international, regional and local economic and political climates and conditions; (vii) changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; and (viii) legislative and regulatory changes. Further information about these and other relevant risks and uncertainties may be found in CNB's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in subsequent filings CNB makes with the Securities and Exchange Commission ("SEC").
Forward-looking statements speak only as of the date they are made. CNB does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. You are cautioned not to place undue reliance on these forward-looking statements.
Contact: Tito Lima, Senior EVP, CFO, and Treasurer CNB Financial Corporation 1 South Second Street Clearfield, PA 16830 814-765-9621
FAQ
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