Berks bank buying KNBT -- themorningcall.com

The Lehigh Valley's largest locally owned bank said this morning it will merge with a Berks County bank in a deal worth $464 million, creating the fifth-largest Pennsylvania bank company based on assets.

[Bozo]

KNBT can't even figure out how to send out a logical checking statement.

[unknown]

this sucks! Once again we see how "bigger is better". But, for who? It's customers? Not usually!

[Brent457]

One shark swallowing another.

Every time banks merge, the level of customer service goes down.

Join a Credit Union if you can.

[my phone bill]

my verizon phone bill is easier to read than the KNBT checking statement.. thanks scott fainor for think of yourself during this merger.. bigger is not always better unless you have a complex.. do you have a complex?

[comment]

As some of you know, I am an investment banker. This is an interesting deal because KNBT has #2,#1 in market share in Lehigh and Northampton County, repectively. Wachovia and now Bank of American have major offices in the Lehigh Valley.

There is no way that these behemoths will allow Natonal Penn Bancshares to have #2 market share position in the Lehigh Valley from a bank out of Boyertown, PA.

NPBC will be 5th largest in market share in PA. I doubt either that PNC, Citizens or Sovereign will sit by and watch the most stable and fastest growing economy in PA slipped them by.

You can bet it is going to be a double pay day for these KNBT insiders, because it will be less than two years until NPBC is taken over. There is no way the big banks will lose this market.

Who made money or has a significant stake of the insiders. I looked at latest proxy and # of shares controlled. There are a few multimillionairs in the Lehigh Valley.

20 Insiders control 7.5% of outstanding stock. Value of Stock upon Acquisition Approximately $35 million or an average position of $1.78 million.

PERSONAL SHARES CONTROLLED VALUE

Feather 360000 $17.31 $6,231,600
Fainor 529000 $9,156,990
Gausling 45875 $794,096
Holton 82573 $1,429,339
Kennedy 160210 $2,773,235
Martin, IV 205756 $3,561,636
Paul, Jr. 67756 $1,172,856
Peischl 42376 $733,529
Smith 77375 $1,339,361
Stehly 37375 $646,961
Stevens, III 42151 $729,634
Thulin 74154 $1,283,606
Sobol 214484 $3,712,718
Bodnyk 26206 $453,626
Kennedy 28866 $499,670
Andreacio 21892 $378,951
Goldsmith 41793 $723,437


Total $35,621,245
Mean Position 20 insiders (3 not listed)$1,781,062

[Stevo]

This sucks! As an account holder I don't know why we were not asked. No letters, no nothing! I guess it's "hello more bank fees".

Hey KNBT, the credit union is starting to look pretty good right now!

[Stevo]

David J Bhaltazhar Esq wrote:

It's a shame it had to get to this.
~xXx~
David J. Bhaltazhar Esq.
Internal Affairs
Ltd.
41

Who the hell is this nut??

[Norbert]

There is nothing unusual about a small bank that has only been traded for a few years having a handful of controlling shareholders.
The total return for holders of stock since the IPO at $10, assuming reinvestment of dividends, is about 65 percent vs about 45 percent for the DJIA.
Fainer is overpaid though, based on salaries at similar institutions.

[Jim]

my phone bill wrote:

my verizon phone bill is easier to read than the KNBT checking statement.. thanks scott fainor for think of yourself during this merger.. bigger is not always better unless you have a complex.. do you have a complex?

I can read my statement with no problem at all very easy gues you need some help

[Wilson]

Credit Unions are still by far, the best way to go.

[comment]

Norbert,

Actually they did a decent job locally of some consolidation, expansion of footprint, and also product breadth expansion.

Stock price return was decent. Some of the local deals were "sweetheart deals" which allowed some local private held organizations to cash out, but all in all, Fainor did a decent job as a CEO of a small publicly traded bank.

Walking way with $10 million, I agree, the compensation agreement was a little too favorable for management by the Board of Directors.

In the big scheme of things, it is another bad day for the Lehigh Valley as now there are no local banks that hold a sizable market share in the Lehigh Valley anymore.

I was hoping that KNBT would continue to acquire up into the northern counties and become a local financial hub, but now the hub is only to the extent of wealth management, retail banking, and loan origination of Wachovia and Bank of America.

Lehigh Valley loses another publicly traded company. Not a good day for local economics, unless you held stock.

[Pat]

Another sell out.

[Stevo]

comment wrote:

Walking way with $10 million, I agree, the compensation agreement was a little too favorable for management by the Board of Directors.

Meanwhile our checking accounts are making 2%(if that)...

[FedUpinLV]

Banks...they should put their names on the signs with Velcro...they're always merging/acquiring/changing, etc...

[Really]

Stevo wrote:

<quoted text>
Meanwhile our checking accounts are making 2%(if that)...

Whoa, i'll take that for checking. I doubt i get .05% and i'm with KNBT.

[momeof3]

well since these 2 big businesses merged maybe now they can figure out how prevent my ATM/VISA card numbers from being comprimised,and they still didn't return my money to my account (it has been over a week) this happened more than once to me......that is ok I was closing my account anyway...the credit union is looking really good..

[Fahrenheit 451]

Hey Kurt....miss something in your research???

Form 8-K for NATIONAL PENN BANCSHARES INC

----------

28-Aug-2007

Entry into a Material Definitive Agreement, Change in Directors or P

Item 1.01 - Entry into a Material Definitive Agreement
Consulting Agreement - Wayne R. Weidner

In accordance with the management succession plan of National Penn Bancshares, Inc. disclosed in September 2006, National Penn and its wholly-owned banking subsidiary, National Penn Bank, have entered into a Consulting Agreement with Wayne R. Weidner, National Penn's Chairman, to take effect on January 1, 2008 after Mr. Weidner's retirement as a full-time employee. Mr. Weidner will continue as National Penn's non-employee Chairman as of January 1, 2008.

This Consulting Agreement was entered into on August 27, 2007, after approval on August 22, 2007 by National Penn's Board of Directors (meeting in Executive Session with no management or non-independent directors present).

The material terms and conditions of this Consulting Agreement are as follows:

· The Agreement was entered into on August 27, 2007.

· The Agreement will take effect on January 1, 2008.

· Mr. Weidner will make himself available to provide general advising and consulting services to National Penn, including consultation and advice on strategy, tactics, business development, and mergers and acquisitions.

· The term of the Agreement is from January 1, 2008 through April 27, 2010, unless earlier terminated due to death, disability or by either party.

· Mr. Weidner's compensation will be $10,625 per month, unless increased or decreased by mutual agreement at annual January 1 review dates.

[Smilie]

I think everyone is overreacting to this merger. National Penn Bank is phenomenal at customer service. I wouldn't be too worried about the "big bank" affect in the Lehigh Valley. What it's going to do is give its customers more options for products & services-not fees as eluded to in prior postings. And quite honestly, I think it's National Penn Bank that will be adjusting to KNBT's ways in the valley. It has small name recognition here.

[THe Unknowen]

it a shame after they got ride of all the good people in hazleton office good for them. Now maybe the new bank should look at the slow pokes they have working for them, in the hazleton area.

[Real time]

If this were about pensions or health care there would be hundreds of comments about the ills of socialism. The demon-Democrats, etc.,etc.. This is Republican welfare, KBNT pays crap, uses your money with little return and takes care of its top guys. Please spare the top talent talk. I have broken bread with some of these 'bright guys'. This is why the free capitalism with no social obligation option will eventually fail. Since state sanctioned thievery and democracy are not the same. The contemptuous greed of these new robber barons is history of the early 20th century repeating itself.