National Penn Banchares Inc. just got bigger.
National Penn officials announced Wednesday that it will acquire TF Financial Corporation in a merger deal.
Headquartered in Newtown, Bucks County, TF Financial and its wholly-owed subsidiary 3rd Fed Bank, operate 18 retail and commercial banking offices in Bucks and Philadelphia counties in Pennsylvania as well as Burlington, Mercer and Ocean counties in New Jersey.
TF Financial shareholders will receive either $42 in cash or 4.22 shares of National Penn stock, based on their election.
The acquisition will cost Allentown-based National Penn $138 million.
“We are excited about the affiliation with a high quality company like TF Financial. Expanding our market presence in the attractive Bucks and Philadelphia counties in Pennsylvania and the opportunity to enter New Jersey fits perfectly into our strategy,” said National Penn CEO Scott Fainor.
“We have been disciplined in our acquisition approach and this transaction further leverage s our strong capital base, as well as accretes both short-term and long-term shareholder value,” he added.
Both boards of directors have unanimously approved the transaction, which is expected to be finalized by late 2014.