BB&T to Buy National Penn Bancshares for $1.8 Billion
August 17 2015 - 9:57PM
Dow Jones News
By Maria Armental
BB&T Corp. has reached an agreement to buy National Penn
Bancshares Inc. in a cash and stock deal valued at about $1.8
billion.
The deal, subject to approval by National Penn shareholders,
would expand Winston-Salem, N.C.-based BB&T's footprint in the
Mid-Atlantic and bolster its deposits by about $6.7 billion.
National Penn, based in Allentown, Pa., has about $9.6 billion
in assets and 124 locations in Pennsylvania, New Jersey and
Maryland.
BB&T said the merger, expected to close in mid-2016, would
cost the company about $100 million before taxes but result in
about $65 million in savings a year. Excluding one-time changes,
BB&T said it expects the deal to add to earnings in the first
full-year.
If approved, David B. Kennedy, National Penn's chief banking
officer, would be named president of a new community banking
region, based in Allentown.
Meanwhile, National Penn's chief executive, Scott V. Fainor,
would become group executive, overseeing several community banking
regions, BB&T said.
National Penn's shares edged up in late trading to $10.94.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 17, 2015 21:42 ET (01:42 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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