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National Penn to acquire Philly-area TF Financial

National Penn Bancshares Inc. lost out on one acquisition this year but nailed a new one Wednesday when it announced an agreement to acquire TF Financial Corp., a Newtown-based bank with 18 branches in Pennsylvania and New Jersey, for $138 million.

TF Financial is the bank-holding company for 3rd Fed Bank. The company has $846 million in assets, $692 million in deposits and $609 million in loans, according to a news release.

National Penn President and CEO Scott V. Fainor said Wednesday morning the acquisition moves National Penn from 13th in the deposit market share in Bucks County to seventh.

In Philadelphia County, National Penn moves from 25th in the market share to 15th, he said.

“This fits our strategy to grow National Penn … and grow in new markets,” Fainor said. “3rd Federal Bank is a quality organization.”

From the end of the first quarter of 2013 to the end of the first quarter of 2014, 3rd Fed’s assets rose from $708 million to $836 million, according to its quarterly report filed with the Securities and Exchange Commission. That’s an increase of more than 18 percent.

3rd Fed has offices in Bucks and Philadelphia counties in Pennsylvania and Burlington, Mercer and Ocean counties in New Jersey. All of the branches will assume the National Penn name.

The deal is expected to close in late 2014, pending regulatory approvals and the approvals of TF Financial’s shareholders, according to the news release. Shareholders from both National Penn and TF Financial have signed off on the framework of this deal.

TF Financial shareholders will receive either $42 in cash or 4.22 shares of National Penn stock. The deal includes closing two overlapping branches in Doylestown.

3rd Fed’s seven branches in New Jersey are National Penn’s first move into the Garden State, a move Fainor said the company had been looking at for “several years.”

In April, National Penn announced it submitted a bid to acquire First Mariner Bank of Baltimore. The bank’s parent company, First Mariner Bancorp Inc., declared bankruptcy in the winter.

But when a bankruptcy judge reopened the bidding, National Penn pulled out of the process.

National Penn Bancshares Inc. is the parent company of National Penn Bank, which has four branches and a regional office in Lancaster County. This year, it moved its headquarters from Boyertown to Allentown. National Penn Bancshares Inc. trades on the Nasdaq exchange under the ticker symbol NPBC.

TF Financial Corp. trades on the Nasdaq under the ticker symbol THRD.

Michael Sadowski

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