Harleysville National acquires Willow Financial

By Lisa Kerner

Charlotte, N.C., Dec. 5 - Harleysville National Corp. completed its acquisition of Willow Financial Bancorp, Inc., with Willow Financial Bank merging with and into Harleysville National Bank.

In May, Harleysville National and Willow Financial agreed to merge in a deal valued at approximately $162 million, or $10.28 per Willow Financial share.

Each share of Willow Financial common stock will be exchanged for 0.73 of a share of Harleysville National common stock.

"We are now the third-largest bank holding company headquartered in Southeastern Pennsylvania, and our customers will benefit from an expanded branch footprint, technological enhancements, a broader product base, and a higher legal lending limit," Harleysville National president and chief executive officer Paul D. Geraghty said in a company news release.

"The transaction drives shareholder value by providing the opportunity to deliver $15 million to $20 million of synergies and accretion to earnings per share in 2009," Geraghty added.

Willow Financial president and chief executive officer Donna Coughey continues with Harleysville as executive vice president. Two Willow Financial Bancorp directors, James E. McErlane and John J. Cunningham III, will join Harleysville National's board of directors.

Harleysville National is the holding company for Harleysville National Bank and Trust and its division, East Penn Bank. The company is based in Harleysville, Pa.

Prior to the merger, Wayne, Pa.-based Willow Financial was the holding company for Willow Financial Bank.

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