Clearfield-based CNB Financial Corp., the parent company of CNB Bank, and Stroudsburg-based ESSA Bancorp, the parent company of ESSA Bank & Trust, plan to merge.
Under the terms of the merger, ESSA will merge with and into CNB, and ESSA Bank will merge with and into CNB Bank. CNB and CNB Bank will each add three directors from ESSA to their boards of directors. CNB will create a ESSA Bank division board of advisors.
Gary S. Olson, ESSA president, CEO, and director; Robert C. Selig Jr., ESSA board chairman; and Daniel J. Henning, ESSA director, will join the CNB board and the CNB Bank board. Olson also will serve as strategic advisor to CNB’s CEO.
ESSA shareholders will receive 0.8547 shares of CNB common stock for each outstanding share of ESSA common stock.
The combined company is expected to have approximately $6 billion in total loans, $7 billion in total deposits, and $8 billion in total assets. The merger allows CNB to expand its services to eastern Pennsylvania and the greater Lehigh Valley market without branch overlap.
CNB Bank operates in Pennsylvania, Ohio, New York, and Virginia. It has offices in Central and North Central Pennsylvania that serve as the multi-brand parent to various divisions.