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Headquartered in Allentown, National Penn has assets worth $9.6bn, $6.7bn in deposits and 124 banking offices across Pennsylvania, New Jersey and Maryland.

The cash and stock deal would comprise 70% shares of BB&T and 30% in cash.

Subject to the approval of regulators and National Penn shareholders, the deal is expected to be closed around mid-2016.

BB&T chairman and CEO Kelly S King said: "The acquisition of National Penn provides a tremendous opportunity to strengthen our franchise in Pennsylvania and continue building the scale necessary to operate efficiently and with high quality service.

"As the fourth largest bank in the state, we will have a significant presence in these markets. BB&T will have the breadth of market coverage combined with excellent client service levels that will allow us to grow our client base."

BB&T also plans to establish a fourth community banking region for eastern Pennsylvania. It expects to incur pre-tax merger and integration costs of approximately $100m and expects to achieve annual cost savings of around $65m.

"National Penn is an attractive, well run company with strong management. National Penn’s culture, commitment to its communities and business model are a strong fit with BB&T’s," added King.

Image: The cash and stock acquisition of National Penn Bancshares would comprise 70% shares of BB&T and 30% in cash. Photo: courtesy of adamr/ freedigitalphotos.net.