PHILADELPHIA PA – Warburg Pincus, a private equity investment firm headquartered in New York City, apparently likes what it sees in the local banking business. It intends to buys 10 percent or more of the stock of National Penn Bancshares Inc., the company that controls National Penn Bank, according to an advertisement placed Friday (Oct. 22, 2010) in The (Pottstown PA) Mercury newspaper by the Federal Reserve Bank of Philadelphia.
The east side of National Penn Bank's branch office in Sanatoga on South Sunnybrook Road.
National Penn operates one of its many branch offices at the corner of East High Street and South Sunnybrook Road in Sanatoga village, as well as others in Pottstown, Gilbertsville, Boyertown, North Coventry, Douglassville, Royersford and Phoenixville.
The proposed $150 million stock purchase is no surprise to the Boyertown-based bank, which announced its agreement with the investors earlier this month (Oct. 6). “We are excited to have Warburg Pincus join us as a significant shareholder,” National Penn President Scott V. Fainor said. Warburg Pincus would be the banking company’s largest shareholder, controlling a total of 16.4 percent of its outstanding shares, The (Easton PA) Express-Times newspaper reported earlier this week.
Money from the firm’s stock purchase would be used to speed up the bank’s ability to repay U.S. Treasury loans, Fainor said.
The Fed, whose announcement in The Mercury was published as a legal notice in a newspaper of public record, has the power to approve or deny Warburg Pincus’ plans. Consequently, the notice added, it is seeking written comments on the proposal by Nov. 11. Those interested in commenting can address their letters to The Federal Reserve Bank of Philadelphia, 10 Independence Mall, Philadelphia PA 19106.
The Fed is the central banking system of the United States, and its Philadelphia bank supervises banking activities in portions of Pennsylvania, New Jersey and Delaware. It “considers a number of factors” – including public comments – “in deciding whether to approve” a request like that of Warburg Pincus, its notice said. It may even conduct a public meeting or formal notice on the request if there is sufficient interest, it added.
The firm’s specific fund that would make the purchase, Warburg Pincus Private Equity X LP, is valued at $15 billion and was opened during 2007. Its declared stock ownership also includes shares of MBIA Inc., a provider of financial guarantee insurance; consumer insurer Primerica Inc.; Sterling Financial Corp., a bank holding company in Spokane WA; and Webster Financial Corp., another bank holding company in Waterbury CT.
