By Chris Wack
CNB Financial is buying ESSA Bancorp, parent company of ESSA Bank & Trust, in a deal valued at $214 million, or $21.10 per ESSA Share.
ESSA Bank & Trust will merge with and into CNB Bank, and the combined company is expected to have $8 billion in total assets, $7 billion in total deposits, and $6 billion in total loans.
Under the terms of the merger agreement, the transaction is expected to be a tax-free exchange for shareholders of ESSA for U.S. federal income tax purposes. ESSA shareholders will receive 0.8547 shares of CNB stock for each outstanding share of ESSA stock.
ESSA operates 20 community offices throughout eastern Pennsylvania.
CNB and CNB Bank will each add three directors from ESSA to their respective boards of directors. Gary S. Olson, current chief executive of ESSA; Robert C. Selig Jr., current chairman of the board of ESSA; and Daniel J. Henning will join both the CNB board and the CNB Bank board following the consummation of the merger.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
January 10, 2025 07:53 ET (12:53 GMT)
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