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Tower completes First Chester deal

By , - Last modified: February 15, 2011 at 11:28 AM

Following their respective shareholder votes on Wednesday, Tower Bancorp Inc. closed on its acquisition of First Chester County Corp., the two bank holding companies said late Friday.

The combined bank has about $2.7 billion in assets, $2.3 billion in deposits and 49 branches in Central and southeastern Pennsylvania and Maryland.

As previously announced, First Chester shareholders will receive 0.356 shares of Tower stock for each of their shares. That puts the cost to Tower at about $49.1 million, based on its $22.03 share price at the close of business Thursday, the bank said.

The share ratio was based on First Chesterís volume of delinquent loans, which was about $69.7 million as of Nov. 30, Tower said in a statement. The rise or fall in the ratio was designed to protect Tower from deterioration in First Chesterís loan portfolio.

First Chesterís subsidiary, the First National Bank of Chester County, will operate as a division of Graystone Tower Bank under the name 1N Bank.

Harrisburg-based Tower was founded in 2005. Its shares trade on the Nasdaq under the ticker symbol TOBC. West Chester-based First Chester was founded in 1863. Its shares trade under the ticker symbol FCEC.

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