08:06 AM EST, 01/10/2025 (MT Newswires) -- CNB Financial ( CCNE ) and ESSA Bancorp ( ESSA ) said Friday they have entered into a definitive agreement for ESSA to merge into CNB in an all-stock transaction, valued at approximately $214 million.

The transaction will create a combined entity with $8 billion in total assets, $7 billion in deposits, and $6 billion in loans.

ESSA shareholders will receive 0.8547 shares of CNB Financial ( CCNE ) common stock for each ESSA share, equivalent to $21.10 per share based on CNB Financial's ( CCNE ) 10-day volume-weighted average stock price of $24.69 as of Jan. 8.

The transaction, which has already been approved by the boards of both companies, is expected to close in Q3 2025, subject to shareholder and regulatory approvals.

ESSA's Chief Executive Officer Gary S. Olson, board chairman Robert C. Selig Jr., and board member Daniel J. Henning will join the boards of CNB Financial ( CCNE ) and CNB Bank. Olson will also serve as strategic advisor to CNB's CEO.

The merger is expected to be 35% accretive to CNB's diluted earnings per share in 2026.