That final value is lower than anticipated when the initialagreement was struck in May. At that time, as GlobeSt.com reported,thetransaction was valued at $92.7 million, based on paymentof approximately $14.50 per East Penn share and was projected tonot fall below $86.3 million. Shares of both companies' commonstock on the Nasdaq experienced significant volatility in the pastmonths, and both companies reported declines in net income for thisyear's third quarter. Shares of EPEN stopped trading at the closeof the deal on Nov. 19.

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

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