Harleysville banks math-challenged Willow
Harleysville National takes down Willow Financial, paying $162 million, a premium to Willow's recent price but a disappointment compared to what bank investors hoped when Willow was created as a suburban take-out candidate three years ago.
Harleysville National Corp. cements its position as the largest locally-based bank left in the Philadelphia area with its $162 million purchase of Willow Financial Bancorp Inc., which hasn't filed financial statements this quarter. Inquirer story here.
It's a disappointing end for shareholders who hoped Willow would be a lucrative suburban target for expansion-minded lenders looking to break into the market. Willow's predecessor paid $145 million for the former Chester Valley Bancorp (First Financial Bank), which forms half the combined company, back in 2005.
According to Federal Deposit Insurance Corp. data, the combined bank will have $3 billion in deposits across Bucks, Chester, Delaware and Montgomery Counties. That makes it fifth in the 'burbs, after Wachovia, Citizens, TD Commerce and PNC and ahead of Sovereign and everybody else.