Harleysville Natl Corp Pa (MM) (NASDAQ:HNBC)
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Harleysville National Corporation Acquires Millennium Bank and
Cumberland Advisors, Inc.
HARLEYSVILLE, Pa., May 4 /PRNewswire-FirstCall/ -- Harleysville National
Corporation (HNC) is pleased to announce the completion of the acquisition of
Millennium Bank, a $200 million bank, which specializes in commercial lending
and client relationship banking, and its wholly-owned subsidiary, Cumberland
Advisors, Inc.
Millennium Bank, headquartered in Malvern, Pennsylvania, has 4 banking offices
located in Malvern (2), Blue Bell and Wyomissing, Pennsylvania. Cumberland
Advisors, Inc. is a registered investment advisor headquartered in Vineland,
New Jersey, that specializes in fixed income money management and has about
$700 million under management. The transaction brings HNC's assets to $2.7
billion and doubles the size of its trust and wealth management group to $1.4
billion in assets. As part of the agreement, Millennium has merged into
Harleysville National Bank and Trust Company (HNB), HNC's subsidiary bank.
"We are pleased to have Millennium Bank join our banking family and are
confident the affiliation will serve consumers and businesses as well," said
Walter E. Daller, Jr., Chairman, President and CEO of HNC. "Millennium, led by
its CEO, David Sparks, has been extremely successful in developing a business
model and professional staff that will complement HNC's strategic initiatives,"
he said. "Cumberland Advisors, Inc. is also a timely strategic fit for our
company, helping us to grow our asset and wealth management division," he
added.
The company also announced the allocations of cash and HNC stock to be paid to
former shareholders of Millennium Bank. Shareholders who elected to receive
cash consideration of $16.00 per share will receive 100% cash for their
election. Because the option to receive HNC common stock was oversubscribed,
Millennium shareholders, electing to receive stock, will receive approximately
64.38% of their consideration in HNC common stock, with the remainder in cash.
The transaction, valued at approximately $46 million, is expected to be
accretive to HNC's earnings per share within the first year after consummation.
David E. Sparks, Chairman and CEO of Millennium stated, "Our Board of
Directors, shareholders and staff are very excited about the opportunity that
this business combination will provide to both us and Harleysville." Sparks,
past Chairman and CEO of Millennium Bank, joins HNC as Executive Vice President
of the Corporation and President and CEO of the HNB's wealth management and
private banking group, and David R. Kotok continues as Cumberland's Chairman
and Chief Investment Officer.
Harleysville National Corporation, with assets of $2.7 billion, is the holding
company for its major subsidiary, Harleysville National Bank and Trust Company
(HNB). Providing Real Life Financial Solutions, HNB operates 45 offices in 10
counties throughout eastern Pennsylvania. Individuals, families and businesses
can apply for banking, trust and investment services at any HNB office, by
calling 1-888-HNB-2100 or online at http://www.harleysvillebank.com/.
Investment Management and Trust Services are provided through the Millennium
Wealth Management and Private Banking Group, a division of HNB, with assets of
approximately $1.4 billion. Harleysville National Corporation stock is traded
under the symbol "HNBC" and is commonly quoted under Nasdaq National Market
Issues. For more information, visit the HNC Web site at
http://www.hncbank.com/.
This press release may contain forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Actual results and trends
could differ materially from those set forth in such statements due to various
factors. Such factors include the possibility that increased demand or prices
for the Company's financial services and products may not occur, changing
economic and competitive conditions, technological developments, and other
risks and uncertainties, including those detailed in the company's filings with
the Securities and Exchange Commission.
DATASOURCE: Harleysville National Corporation
CONTACT: Walter E. Daller Jr., Chairman, President and CEO, Harleysville
National Corporation, +1-215-256-8851
Web site: http://www.hncbank.com/
Web site: http://www.harleysvillebank.com/