Headquartered in Stroudsburg, ESSA Bancorp Inc., the parent company of ESSA Bank & Trust, is being acquired by CNB Financial Corp., based in Clearfield, Pennsylvania, and the parent company of CNB Bank.

The agreement, which will merge ESSA into CNB Bank, received the necessary bank regulatory approvals on Monday from the Federal Deposit Insurance Corp. and the Pennsylvania Department of Banking and Securities.

According to a news release, CNB also “received a waiver from the Federal Reserve Bank of Philadelphia for any application with respect to the merger of ESSA with and into CNB.”

Gary Olson, president and chief executive officer of ESSA Bank, said, “Joining the CNB family will benefit our customers and communities as they will continue to be served by a combined organization that upholds our shared culture and values, maintains our relationship-focused approach, and offers an elevated suite of financial products and services.”

The two financial institutions entered into the agreement on Jan. 9, which will merge ESSA into CNB in an all-stock transaction.

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 common stock for each outstanding share of ESSA common stock, according to the news release announcing the agreement in January.

Under the terms of the agreement, Olson, Robert Selig Jr., current chairman of the board of ESSA, and Daniel Henning, ESSA director, will join both the CNB board and the CNB Bank board of directors. Additionally, Olson will have a role as strategic adviser to CNB’s chief executive officer, and CNB will form a board of advisers for the ESSA Bank division.

Following the acquisition, ESSA Bank and Trust will operate as ESSA Bank, a division of CNB Bank, and will continue to do business in its existing area. ESSA Bank has 19 branches in counties in the Poconos, Lehigh Valley, Scranton/Wilkes-Barre and suburban Philadelphia, including Monroe: Brodheadsville, Stroudsburg, East Stroudsburg, Blakeslee, Tannersville, Mountainhome and Marshalls Creek; Luzerne: Wilkes-Barre; Lackawanna: Scranton; Northampton: Wind Gap, Nazareth, Bath, Easton and Bethlehem; Lehigh: Allentown and Alburtis: Chester: Devon; and Delaware County: Upper Darby and Lansdowne.

The combined company is expected to have about $8 billion in total assets, $7 billion in total deposits and $6 billion in total loans. CNB Bank operates 55 full-service offices in Pennsylvania, Ohio, New York, and Virginia.

Michael Peduzzi, president and chief executive officer of CNB, said, “This marks an exciting milestone as we bring together two strong institutions with shared values and a commitment to client-focused services and great experiences for all of our stakeholders. We look forward to welcoming ESSA customers, employees, and shareholders to CNB. Together, we will expand our reach, enhance our capabilities and efficiencies, and better meet the needs of the communities we serve.”

The acquisition is expected to close on July 23, pending customary closing conditions.