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National Penn Approved For TARP

SANATOGA PA – National Penn Bank (NPB), which operates a branch office on East High Street, won preliminary approval from the federal government Wednesday (Nov. 26, 2008) to participate in the Treasury Department‘s Troubled Assets Relief Program.

The bank said it would receive $150 million from Treasury to help stimulate economic recovery by expanding relationships with consumer and business customers.” In return, Treasury could take an ownership interest in the bank, just like any other stockholder, and receive 1.47 million shares of NPB stock valued at $150 million at a stock price of $15.24 per share.

The bank “is well capitalized” and “has a long history of financial strength,” said President Glenn E. Moyer, so it wasn’t desperate for Treasury’s money. It’s availability, however, gives National Penn additional resources for “the challenges facing the economy,” Moyer added.

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