BOYERTOWN, PA June 24, 2010 National Penn Bancshares, Inc. (NASDAQ: NPBC), the parent company of National Penn Bank and Christiana Bank & Trust Company (Christiana), announced today that it has signed a definitive agreement under which WSFS Financial Corporation (NASDAQ: WSFS) would acquire the stock of Christiana for a cash purchase price of $34.5 million.
BOYERTOWN, PA June 24, 2010 National Penn Bancshares, Inc. (NASDAQ: NPBC), the parent company of National Penn Bank and Christiana Bank & Trust Company (Christiana), announced today that it has signed a definitive agreement under which WSFS Financial Corporation (NASDAQ: WSFS) would acquire the stock of Christiana for a cash purchase price of $34.5 million. The transaction, anticipated to close in the fourth quarter of 2010, is subject to regulatory approval. rn rnThe sale includes the trust asset administration business, with annual revenue of approximately $6.5 million, and two commercial bank branches located in Delaware. The transaction will result in an approximately $8 million goodwill impairment charge related to the trust asset administration business, specifically at Christiana, in the second quarter 2010. On a pro-forma basis, this transaction will increase certain regulatory capital ratios by approximately 35 to 55 basis points and tangible book value by 9 cents per share.rn rnScott V. Fainor, President and CEO of National Penn Bancshares, Inc. said, “This transaction is consistent with our previously stated business line review and strategic objectives to enhance liquidity at the holding company in a shareholder friendly manner and to further accrete our strong regulatory capital position. Holding company liquidity will increase by approximately $35 million.rn rnDonald P. Worthington, Chairman of Christiana, stated, Christiana is a quality organization and we will be working with WSFS to assure a smooth transition for Christiana customers, staff and the community until the transaction closes.rn rnNational Penn also announced its intention to surrender its underperforming portfolio of separate account Bank Owned Life Insurance (BOLI). Availing itself of the benefits of stable value wrap agreements, the aggregate proceeds of the surrender will be approximately $65 million, which is approximately $6.5 million in excess of the fair market value of the underlying assets. rn rnThe surrender will not impact pre-tax income but will create approximately $8.1 million of tax expense. Approximately $6.3 million will be offset by net operating loss carry forwards, which will reduce the deferred tax asset, resulting in an approximate cash payment of $1.8 million. The utilization of the net operating loss carry forwards and related reduction in the deferred tax asset in conjunction with the economics of the stable value wraps result in a significantly enhanced internal rate of return on these funds.rn rnFainor stated, The common theme of these two transactions is that National Penn is strategically managing its balance sheet and in the aggregate, these two transactions will enhance future earnings of National Penn.rn rnReed Smith LLP acted as outside legal counsel to National Penn. Boenning & Scattergood, Inc. acted as financial advisors to National Penn.rn
