WSFS Bank, a subsidiary of WSFS Financial, has signed a definitive agreement to acquire Delaware-based Christiana Bank & Trust, a wholly-owned subsidiary of National Penn Bancshares, for $34.5m in cash transaction.
As part of the transaction WSFS Bank will acquire approximately $161m in deposits, approximately $115m in performing loans and approximately $6bn in trust assets under administration or management held at Christiana as of May 31, 2010. However, it will not acquire any of Christiana’s currently classified or non-accrual loans or OREO in the transaction.
Mark Turner, president and CEO of WSFS, said: “It significantly advances our strategic plan efforts in trust and wealth management, adding fee income, diversity and strength to our revenues and franchise value. It enhances our retail banking presence in an important Delaware market.
“The transaction is financially attractive, as it is expected to be accretive to earnings per share in 2011. It is also well structured to be clear from assuming any risk and distraction in classified loans, non-performing loans and OREO.”
Zissimos Frangopoulos, president, CEO and director of Christiana Bank & Trust, said: “We are extremely pleased to join forces with WSFS. Their larger Delaware presence will benefit our associates and our customers and we strongly believe our track record in trust and wealth management will be a nice addition for WSFS.”
The transaction is expected to be closed in the fourth quarter of 2010, subject to customary regulatory approvals.