National Penn, KNBT form fifth-largest Pennsylvania bank holding company

By Lisa Kerner

Charlotte, N.C., Feb. 1 - The merger of KNBT Bancorp, Inc. with and into National Penn Bancshares, Inc. was completed on Friday.

KNBT's banking subsidiary, Keystone Nazareth Bank & Trust Co., is being merged into National Penn's banking subsidiary, National Penn Bank, effective Saturday, according to a National Penn news release.

National Penn is now the fifth-largest Pennsylvania-based bank holding company, with $8.9 billion in assets and 140 offices in Pennsylvania, Maryland and Delaware.

As previously reported, National Penn and KNBT agreed to merge in a transaction valued at some $464.4 million, or $17.31 per KNBT share.

Each share of KNBT common stock has been converted into the right to receive 1.03 shares of National Penn common stock. National Penn and KNBT shareholders will respectively own about 65% and 35% of the combined company.

KNBT will retain its name in the six Pennsylvania counties where it operates, and National Penn community offices in two other counties will be rebranded under the KNBT name.

Former KNBT chief executive officer Scott V. Fainor was named senior executive vice president and chief operating officer of National Penn and president and CEO of National Penn Bank.

"Our two companies have invested a great deal of time over the past several months preparing for the integration of this merger, and we look forward to implementing our plan," Fainor said in the release.

National Penn is a financial services company based in Boyertown, Pa.

Prior to the merger, KNBT was a Bethlehem, Pa.-based financial services company.

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