Harleysville Closes on $85M East Penn Buy

That final value is lower than anticipated when the initial agreement was struck in May. At that time, as GlobeSt.com reported, the transaction was valued at $92.7 million, based on payment of approximately $14.50 per East Penn share and was projected to not fall below $86.3 million. Shares of both companies' common stock on the Nasdaq experienced significant volatility in the past months, and both companies reported declines in net income for this year's third quarter. Shares of EPEN stopped trading at the close of the deal on Nov. 19.

The acquisition adds nine bank branches to Harleysville National's existing 46 and also increases its presence in the Lehigh Valley. Under the agreement, East Penn Bank's nine branches will retain the East Penn logo and identity, and nine existing Harleysville branches in Lehigh, Northampton, Monroe and Carbon counties will take on the East Penn identity and become part of Harleysville National's newly created East Penn Bank division.

A spokeswoman for Harleysville told GlobeSt.com that decision was a reflection of East Penn's historic presence in those Lehigh Valley locations. Other Harleysville branches are located in Berks, Bucks, Montgomery and Chester counties, and they include several small units in retirement communities.

Brent Peters, formerly president and CEO of East Penn, is named EVP of Harleysville National and president of the East Penn Bank division. He also joins the HNBC board of directors, and a new advisory board will be formed for that division with the former directors of East Penn Financial.

In a statement, Peters says that the entire frontline staff of East Penn has been retained. Paul Geraghty, HBNC's president and CEO, says in the statement, "we have achieved a full system conversion, which allows our combined customers to enjoy the benefit of a wide array of financial services delivered seamlessly...throughout Eastern Pennsylvania."