Warburg Pincus LLC has agreed to invest $150 million in National Penn Bancshares Inc., buying a 16% stake at a 5% discount to Tuesday's closing price.
The private-equity firm has been looking to make investments in struggling banks amid hopes to benefit from potential rebounds.
National Penn President and Chief Executive Scott V. Fainor said the move will help the 127-branch Pennsylvania bank speed its ability to repay the $150 million of aid it received through the Troubled Asset Relief Program.
Fainor took his posts in January after the company posted weaker 2009 results, including a surprise fourth-quarter loss. Lower year-to-year results have continued in the first half of 2010.
National Penn's stock is up 10% this year but has declined 25% from its April high. Shares closed Tuesday at $6.37 and were inactive premarket.
The company in June agreed to sell its Christiana Bank & Trust operation to WSFS Financial Corp. for $34.5 million.
