October 11, 2012 (Update) -- $26 million settlement proposed to end the litigation brought on behalf of former Harleysville Mutual shareholders, who claimed that the company’s directors enriched themselves as part of the merger.
January 15, 2010 -- An investor in National Corporation (HNBC) filed a lawsuit in the United States District Court for the Eastern District of Pennsylvania on behalf of investors other than defendants or those associated with defendants, who purchased Harleysville National Corporation (NASDAQ:HNBC) shares and were holders of record on December 7, 2009 and were eligible to vote at the January 22, 2010 shareholder meeting. According to the complaint the plaintiff alleges that the members of Harleysville’s Board of Directors violated the federal securities laws by failing to provide shareholders with all material information in the merger proxy statement seeking shareholder approval of the merger between Harleysville and First Niagara Financial Group, Inc. First Niagara announced in a press release that First Niagara has agreed to acquire the Philadelphia-area financial services company Harleysville National Corporation (NASDAQ: HNBC) in an all-stock transaction valued at approximately $237 million or $5.50 per share.
According to First Niagara Financial Group “each Harleysville shareholder will receive 0.474 shares of First Niagara common stock for each Harleysville share owned, representing a premium of about 37.5% based on the Pennsylvania bank's closing price on July 24, 2009 of $4.00 per share”.
Harleysville National Corporation, locaded in Harleysville, PA, is the parent bank holding company of Harleysville National Bank and Trust Company (the Bank or Harleysville National Bank), a wholly owned subsidiary of the Company. The Bank provides a range of banking services, including loans and deposits, investment management and trust and investment advisory services to individual and corporate customers located primarily in eastern Pennsylvania. Harleysville National Corporation had in 2007 $3.903billion in Total Assets with a Net Income of $25.09million and in 2008 $5.49051billion in Total Assets with a Net Loss of $219.47million.
Shares of Harleysville National Corporation (HNBC) traded recently at $6.17 per share, down from its52weekHigh of $10.00, $19.65 per share in September 2009, and over $25 per share in 2006.