CNB Financial Corporation and ESSA Bancorp, Inc. Receive Bank Regulatory Approvals for Merger
Merger Announcement: CNB Financial Corporation and ESSA Bancorp Inc. have received regulatory approvals to merge, with the merger expected to close on July 23, 2025. This merger aims to combine their resources and enhance services for customers and communities.
Leadership Statements: Both CEOs expressed excitement about the merger, highlighting the benefits of combining their institutions, maintaining shared values, and improving client-focused services while expanding their reach and capabilities.
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- Earnings Beat: CNB Financial reported a Q4 GAAP EPS of $1.10, exceeding expectations by $0.34, which highlights a significant improvement in profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved revenues of $86.4 million in Q4, representing a 45.5% year-over-year increase and surpassing market expectations by $13.3 million, indicating strong business expansion and market demand.
- Improved Profitability: The combination of robust revenue growth and effective cost management has significantly enhanced CNB Financial's overall profitability, which is expected to positively impact future shareholder returns.
- Positive Market Reaction: The earnings beat is likely to attract more investor attention, further driving up the stock price and strengthening the company's competitive position in the financial market.
- Earnings Beat: CNB Financial reported a Q4 GAAP EPS of $1.10, surpassing expectations by $0.34, indicating a significant improvement in profitability.
- Strong Revenue Growth: The company achieved revenues of $86.4 million in Q4, representing a 45.5% year-over-year increase, which not only exceeded expectations by $13.3 million but also highlights robust business momentum.
- Positive Market Reaction: The earnings beat is likely to positively impact CNB Financial's stock price, attracting more investor interest in its future growth potential.
- Solid Financial Health: The strong performance provides a solid foundation for future dividend payments and reinvestments, further enhancing market confidence in CNB Financial's financial stability.
- Valuation Potential: Eagle Bancorp is currently trading at $21.42, significantly below its fair value of $31.99, indicating a potential upside of 33%, and despite a net loss of $67.51 million in Q3 2025, its strong fundamentals continue to attract investor interest.
- Revenue Growth Outlook: The company is projected to achieve an annual revenue growth rate of 42.3% over the next three years, significantly outpacing the broader U.S. market's growth rate of 10.5%, which will aid in restoring profitability in a competitive banking landscape.
- Bad Debt Risk: Although facing a high bad loans ratio of 8.8% that could impact future profitability, the robust revenue growth and earnings outlook still provide confidence to investors, indicating the company is actively addressing challenges.
- Market Positioning: As a bank holding company with a market cap of $640.83 million, Eagle Bancorp focuses on commercial and consumer banking services in the U.S., and it is expected to enhance its competitive edge through operational optimization and improved service quality.
Upcoming Ex-Dividend Dates: On 11/28/25, Evercore Inc Class A (EVR), SL Green Realty Corp (SLG), and CNB Financial Corp (CCNE) will trade ex-dividend, with respective dividends of $0.84, $0.2575, and $0.18 scheduled for payment on 12/12/25 and 12/15/25.
Expected Price Adjustments: Following the ex-dividend date, shares of EVR, SLG, and CCNE are expected to open lower by approximately 0.27%, 0.55%, and 0.69%, respectively, based on their recent stock prices.
Dividend Aristocrats Contender: Evercore Inc Class A is nearing eligibility for the "Dividend Aristocrats" index, having achieved over 18 years of consecutive dividend increases.
Current Stock Performance: As of Wednesday trading, shares of Evercore Inc Class A, SL Green Realty Corp, and CNB Financial Corp have seen increases of approximately 1.8%, 4.3%, and 3.1%, respectively.
Earnings Performance: CNB Financial (CCNE) reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.78, and showing a year-over-year increase from $0.61 per share. The company has consistently surpassed earnings estimates over the last four quarters.
Revenue Growth: The bank's revenues for the quarter reached $78.41 million, surpassing the Zacks Consensus Estimate by 0.40% and significantly up from $59.11 million a year ago.
Stock Outlook: Despite the positive earnings report, CNB shares have underperformed the market this year, with a decline of about 2.3% compared to the S&P 500's gain of 17.2%. The stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Future Earnings Estimates: The consensus EPS estimate for the upcoming quarter is $0.83, with projected revenues of $83.9 million. The outlook for the industry, particularly the Banks - Northeast sector, is favorable, ranking in the top 14% of Zacks industries, which could influence CNB's stock performance.
CNB Financial Corporation Performance: Over the past five years, CNB Financial's share price has increased by 44%, which is below the market average, and its earnings per share (EPS) have declined by 7.2% annually, indicating a disconnect between share price and earnings growth.
Total Shareholder Return: Despite the modest share price increase, CNB Financial has a total shareholder return (TSR) of 68% over five years, primarily due to dividend payments, and shareholders have seen a 7.8% return this year, although this still lags behind the overall market performance.









