Nittany Financial, the State College, Pa., parent of Nittany Bank, said it will at first operate as a separate unit of Boyerstown, Pa.-based National Penn. National Penn intends in the near future to merge Nittany Bank into National Penn Bank, National Penn's banking subsidiary. It will then operate as a division of National Penn Bank, retaining its name and its present management team.
The exchange ratio for National Penn common stock has been finalized at 1.994 shares of National Penn common stock for each share of Nittany common stock. After the merger, National Penn expects to have assets of $5 billion by the end of the first quarter 2006 and to remain the seventh-largest bank holding company headquartered in Pennsylvania.
The Federal Reserve Bank of Philadelphia and the Pennsylvania Department of Banking have approved the merger. Closing is expected next Thursday.