Harleysville National Corp. said it will acquire Willow Financial Bancorp for around $162 million, creating the third-largest bank in the Philadelphia area.
As part of the acquisition, Willow Financial Bank, a $1.6 billion savings bank with 29 banking offices in Southeastern Pennsylvania, will merge with Harleysville National Bank and Trust Co.
Both banks said their respective boards approved an agreement that will exchange each share of Willow common stock for 0.73 shares of HNC common stock, with the deal slated to close in the fourth quarter.
The combined bank will have assets of $5.5 billion and 84 branches in Philadelphia and its suburbs, with synergies estimated at as much as $20 million in 2009.
