NATIONAL PENN BANCSHARES 
By BOYERTOWN, Pa., Jan. 28 /PRNewswire-FirstCall/ -- Thomas A. Beaver, Chairman of the Board of National Penn Bancshares, Inc. (Nasdaq: NPBC) announced that Scott V. Fainor has been appointed President & CEO of National Penn and has been elected to the Board of Directors, effective January 27, 2010. Glenn E. Moyer, as a transition to retirement, will continue with National Penn as a special advisor to Mr. Fainor for a period of time.
"The Board and I wish to thank Glenn Moyer for his contributions to National Penn over the past years," said Mr. Beaver. "The strategies that he and his team developed and executed helped make National Penn the respected financial institution that it is today." Mr. Fainor said, "I thank Glenn for his executive leadership, his dedication and involvement in business and the community, and I look forward to his ongoing support in his transition to retirement."
For the fourth quarter 2009, National Penn recorded a loss totaling $283.3 million, representing a loss of $2.25 per common share. The $275 million non-cash goodwill impairment charge resulted in $2.19 of the loss. Exclusive of all non-core items, the fourth quarter core loss was $0.04 per common share. For the full year 2009, National Penn reported a net loss of $356.4 million. After payment of dividends on preferred stock issued to the U.S. Treasury under its Capital Purchase Program, this represents a loss of $3.61 per common share, compared to net income of $31.9 million, or $0.42 per diluted common share, for the year 2008.
Mr. Fainor commented that National Penn's strong capital levels allowed it to take the following proactive steps to strengthen the balance sheet:
-- A non-cash goodwill impairment charge of $275.0 million. While this
charge affected short-term earnings, it has no impact on National Penn's
regulatory capital ratios or tangible book value. Based upon its
periodic testing, National Penn took this action as a result of several
factors, including continued trading value of its stock relative to book
value and certain events in the quarter more fully described in this
release. This charge is not directly attributed to any specific
National Penn acquisition.
-- A provision for loan losses of $47.0 million, which resulted in an
overall increase in the allowance for loan and lease losses to $146.3
million, representing 2.43% of total loans and 116.29% of non-performing
loans.
-- The sale of a portfolio of underperforming shared national credit loans,
which resulted in a pre-tax loss of $6.0 million ($3.9 million after
tax). National Penn has improved its overall credit quality through the
divestiture of $47.4 million of lower quality assets as part of the
$63.8 million of loan commitments sold.
In regard to National Penn's performance, Mr. Fainor commented, "With the support of our Board of Directors, we are focused on shareholder value. The actions we took in 2009 had a negative impact on short-term profitability, but have significantly strengthened our balance sheet and positioned National Penn for improved results in 2010 and beyond." He noted that National Penn remains in a strong capital position following the $225 million in common equity raised in 2009.
The net interest margin, as reclassified, increased during the fourth quarter 2009 to 3.29% from 3.24% in the third quarter 2009. Fee income categories continued to perform well, and expenses remained well controlled, aside from significant increases in FDIC insurance premiums.
Considering the conversion of certain business money market deposits to cash management accounts, deposit growth was higher for the full year 2009 by 7.7%. Our deposit market share in Pennsylvania improved to 9(th )rank versus 11(th )rank in 2008. Additionally, National Penn improved to rank 1(st) in Berks and Centre counties, and maintained the 1(st) and 2(nd) ranks in Northampton and Lehigh counties, respectively. This performance continues to reflect management's execution of its funding strategies and customer confidence in the overall strength of National Penn.
For the full year 2009, National Penn was an active lender, originating loans to new and existing customers in excess of $1.0 billion. However, total loans outstanding declined from year end 2008 by 4.6% due to repayments of loans from existing borrowers, sales of mortgage production in the secondary market, lower levels of loan demand, and loan charge-offs. National Penn has a strong cross-sell culture between its banking subsidiaries, wealth affiliates, and insurance affiliates which is expected to accelerate growth in fee income, loans, and deposits.
National Penn's Board of Directors approved a first quarter cash dividend of one cent per share, payable on February 17, 2010 to shareholders of record on February 6, 2010. This compares to one cent per share paid in the fourth quarter 2009.
On January 27, 2010, National Penn Bank entered into a memorandum of understanding with its primary regulator principally due to its current level of classified assets. Under this informal agreement, National Penn Bank has agreed to develop and implement initiatives to enhance the oversight of problem assets, enhance its process for the allowance for loan and lease losses, and strengthen its internal loan review and credit administration functions. Many of these initiatives are in various stages of completion. Additionally, National Penn Bank has agreed to achieve (by March 31, 2010) and maintain a Tier 1 leverage ratio of at least 8.0%, and to maintain a Tier 1 risk-based capital ratio of at least 10.0% and a total risk-based capital ratio of at least 12.0%. At December 31, 2009, National Penn Bank's capital ratios were 7.86%, 11.21% and 12.47% respectively.
"National Penn's board and senior management remain committed to taking proactive steps to address the challenges that National Penn, like others in our industry, continue to face," Mr. Fainor commented. He noted that National Penn has a focused effort to enhance the strength of its balance sheet, as illustrated by the disposal of its entire CDO portfolio, the strengthening of its loan and lease loss reserve during the year, and the raising of $225 million in common equity. Additionally, over the past several months, National Penn has developed an enterprise-wide "self-improvement plan" that is intended to define, guide, coordinate and oversee the execution of strategies to improve the financial strength of the company. Through these initiatives, National Penn has already begun taking the steps to provide the financial strength necessary for its future success and growth.
About National Penn Bancshares, Inc.:
National Penn Bancshares, Inc., with $9.5 billion in assets, is the fourth largest bank holding company based in Pennsylvania. In addition, wealth assets under administration or management amount to $9.0 billion.
Headquartered in Boyertown, National Penn operates 127 offices. It has 124 community banking offices in Pennsylvania and one office in Maryland through National Penn Bank and its HomeTowne Heritage Bank, KNBT and Nittany Bank divisions. National Penn also has two offices in Delaware through its wholly-owned subsidiary Christiana Bank & Trust Company.
National Penn's financial services affiliates consist of National Penn Wealth Management, N.A., including its National Penn Investors Trust Company division; National Penn Capital Advisors, Inc.; Institutional Advisors LLC; National Penn Insurance Services Group, Inc., including its Higgins Insurance division; and Caruso Benefits Group, Inc.
National Penn Bancshares, Inc. common stock is traded on the Nasdaq Stock Market under the symbol "NPBC". Please visit our Web site at www.nationalpennbancshares.com to see our regularly posted material information.
Statement Regarding Non-GAAP Financial Measures:
This release contains supplemental financial information determined by methods other than in accordance with Accounting Principles Generally Accepted in the United States of America ("GAAP"). National Penn's management uses these non-GAAP measures in its analysis of National Penn's performance. One such measure, annualized return on average tangible equity, excludes the average balance of acquisition-related goodwill and intangibles in determining average tangible shareholders' equity. Banking and financial institution regulators also exclude goodwill and intangibles from shareholders' equity when assessing the capital adequacy of a financial institution. The other such measure, core net income (or core earnings), excludes the effects of non-cash, after-tax unrealized gains and losses. Management believes the presentation of these financial measures excluding the impact of the specified items provides useful supplemental information that is essential to a proper understanding of the financial results of National Penn. In the case of annualized return on average tangible equity, it provides a method to assess management's success in utilizing the company's tangible capital. In the case of core net income (or core earnings), it provides a method to assess earnings performance, which excludes discretionary and/or infrequently occurring items. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Cautionary Statement Regarding Forward-Looking Information:
This release contains forward-looking information about National Penn Bancshares, Inc. that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should,'' "project," "could," "plan,'' "goal," "potential," "pro forma," "seek," "intend,'' or "anticipate'' or the negative thereof or comparable terminology, and include discussions of strategy, financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations or consequences of announced transactions, and statements about the future performance, operations, products and services of National Penn and its subsidiaries. National Penn cautions readers not to place undue reliance on these statements.
National Penn's business and operations are subject to a variety of risks, uncertainties and other factors. Consequently, actual results and experience may materially differ from those contained in any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: increased capital requirements and other requirements or actions mandated by National Penn's regulators, National Penn's inability to meet the requirements of the memorandum of understanding or the individual minimum capital ratio requirements issued by its primary regulator, National Penn's inability to successfully implement its "self-improvement plan", National Penn's ability to raise capital and maintain capital levels, variations in interest rates, continued deterioration in the credit quality of certain loans, the effect of credit risk exposure, declines in the value of National Penn's assets and the effect of any resulting impairment charges, recent and ongoing changes to the state and federal regulatory schemes under which National Penn and other financial services companies operate, competition from other financial institutions, interruptions or breaches of National Penn's security systems, and the development and maintenance of National Penn's information technology. These risks and others are described in greater detail in National Penn's Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as well as in National Penn's Quarterly Reports on Form 10-Q and other documents filed by National Penn with the SEC after the date thereof. National Penn makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forward-looking statement is made.
National Penn Bancshares, Inc.
Exchange Listing Nasdaq "NPBC"
Financial Highlights (unaudited)
(Dollars in thousands, except per share data)
Three Months Ended December 31,
2009 2008 % Change
----------------------- ---- ---- --------
STATEMENTS OF CONDITION
-----------------------
Total assets
Investment securites
Loans and leases
Deposits
Short-term borrowings
Long-term borrowings
Shareholders' equity
Book value per share
Common Book value per share
---------------------------
EARNINGS
-------- -------- -------- ------
Total interest income $103,948 $115,613 -10.09%
Total interest expense 36,503 52,515 -30.49%
---------------------- ------ ------ ------
Net interest income $67,445 63,098 6.89%
Provision for loan and lease
losses 47,000 18,500 154.05%
---------------------------- ------ ------ ------
Net interest income after provision
for loan and lease losses $20,445 44,598 -54.16%
Other income 26,247 (46,204) -156.81%
Other expenses 337,119 59,704 464.65%
-------------- ------- ------ ------
Income (loss) before income
taxes ($290,427) (61,310) 373.70%
Income taxes (9,227) (25,546) -63.88%
Net income (loss) (281,200) (35,764) 686.26%
----------------- -------- ------- ------
Preferred dividends/accretion
of preferred discount (2,095) (417) 402.40%
Net income (loss) available to
common shareholders ($283,295) ($36,181) 682.99%
============================== ========= ======== ======
------------------
PERFORMANCE RATIOS
------------------ ---- ---- ---------
Net yield on earning assets 3.29% 3.33% -0.95%
Return on average assets -11.41% -1.53% 646.97%
Return on average total
shareholders' equity -82.16% -13.20% 522.40%
Return on average total
tangible equity (1) -144.25% -28.83% 400.37%
---------
PER SHARE
--------- ------ ------ ------
Basic earnings available to
common shareholders $(2.25) ($0.45) 400.84%
Diluted earnings available to
common shareholders (2.25) (0.45) 400.84%
Dividends per common share 0.01 0.17 -94.12%
Average shares - basic 125,697,822 79,341,618 58.43%
Average shares - diluted 125,697,822 79,341,618 58.43%
------------------------ ----------- ---------- -----
-------------------------------
(1) Reconciliation Tables for Non-GAAP Financial Measures
Return on average
shareholders' equity -82.16% -13.20%
Effect of goodwill and
intangibles -62.08% -15.62%
------ ------
Return on average tangible
equity -144.25% -28.82%
======= ======
Average tangible equity
excludes acquisition related
average goodwill and
intangibles:
Average shareholders'
equity $1,357,801 $1,077,773
Average goodwill and
intangibles (584,375) (584,221)
-------- --------
Average total tangible
equity $773,426 $493,552
======== ========
Net Income available to
common shareholders $(283,295) $(36,181)
After tax goodwill
impairment charge 275,000 -
After tax other than
temporary impairment
charge on investments 1,407 51,672
After tax (gain) loss on
investment securities (188) (8)
After tax unrealized fair
market value (gain) loss on
NPB Capital Trust II
Preferred Securities (2,385) (4,243)
After tax fraud loss - 2,925
After tax insurance proceeds - -
After tax FDIC special
assessment - -
After tax (gain) loss on sale
of wealth unit (797) -
After tax (gain) loss on sale
of SNC loans 3,921 -
After tax SERP accrual 1,300 -
----- --
Core net income (loss)
available to common
shareholders $(5,037) $14,165
======= =======
Earnings per share $(2.25) $(0.45)
After tax goodwill impairment
charge 2.19 -
After tax other than
temporary impairment
charge on investments 0.01 0.65
After tax (gain) loss on
investment securities - -
After tax unrealized fair
market value (gain) loss on
NPB Capital Trust II
Preferred Securities (0.02) (0.05)
After tax fraud loss - 0.04
After tax insurance proceeds - -
After tax FDIC special
assessment - -
After tax (gain) loss on sale
of wealth unit (0.01) -
After tax (gain) loss on sale
of SNC loans 0.03 -
After tax SERP accrual 0.01 -
---- --
Core net income (loss)
available to common
shareholders $(0.04) $0.18
====== =====
Twelve Months Ended December 31,
2009 2008 % Change
----------------------- ---- ---- --------
STATEMENTS OF CONDITION
----------------------- ---------- ---------- ----
Total assets $9,483,910 $9,403,431 0.86%
Investment securites 2,180,541 $1,919,889 13.58%
Loans and leases 6,024,501 6,315,874 -4.61%
Deposits 6,738,852 6,389,886 5.46%
Short-term borrowings 744,223 651,307 14.27%
Long-term borrowings 889,211 1,083,963 -17.97%
Shareholders' equity 1,069,468 1,179,995 -9.37%
Book value per share 8.51 14.62 -41.80%
Common Book value per share 7.33 12.83 -42.87%
--------------------------- ---- ----- ------
EARNINGS
-------- -------- -------- -----
Total interest income $421,143 $466,236 -9.67%
Total interest expense 168,634 213,498 -21.01%
---------------------- ------- ------- ------
Net interest income $252,509 252,738 -0.09%
Provision for loan and lease
losses 154,025 32,497 373.97%
---------------------------- ------- ------ ------
Net interest income after provision
for loan and lease losses $98,484 220,241 -55.28%
Other income (1,520) 22,758 -106.68%
Other expenses 508,616 216,531 134.89%
-------------- ------- ------- ------
Income (loss) before income
taxes (411,652) 26,468 -1655.28%
Income taxes (63,613) (5,803) 996.24%
Net income (loss) (348,039) 32,271 -1178.49%
----------------- -------- ------ --------
Preferred dividends/accretion
of preferred discount (8,340) (417) 1900.00%
Net income (loss) available to
common shareholders ($356,379) $31,854 -1218.79%
============================== ========= ======= ========
------------------
PERFORMANCE RATIOS
------------------ ---- ---- -----
Net yield on earning assets 3.18% 3.47% -8.41%
Return on average assets -3.59% 0.36% -1088.11%
Return on average total
shareholders' equity -27.92% 3.28% -950.15%
Return on average total
tangible equity (1) -52.94% 7.51% -804.64%
---------
PER SHARE
--------- ------ ----- -------
Basic earnings available to
common shareholders $(3.61) $0.42 -962.54%
Diluted earnings available to
common shareholders (3.61) 0.42 -968.83%
Dividends per common share 0.28 0.68 -59.00%
Average shares - basic 98,818,526 76,185,375 29.71%
Average shares - diluted 98,818,526 76,740,859 28.77%
------------------------ ---------- ---------- -----
-------------------------------
(1) Reconciliation Tables for Non-GAAP Financial Measures
Return on average
shareholders' equity -27.92% 3.28%
Effect of goodwill and
intangibles -25.02% 4.23%
------ ----
Return on average tangible
equity -52.94% 7.51%
====== ====
Average tangible equity
excludes acquisition
related average goodwill
and intangibles:
Average shareholders'
equity $1,246,537 $982,619
Average goodwill and
intangibles (589,133) (553,098)
-------- --------
Average total tangible
equity $657,405 $429,521
======== ========
Net Income available to
common shareholders $(356,379) $31,854
After tax goodwill
impairment charge 275,000 -
After tax other than
temporary impairment
charge on investments 66,164 64,672
After tax (gain) loss on
investment securities 1,858 (437)
After tax unrealized fair
market value (gain) loss on
NPB Capital Trust II
Preferred Securities 2,878 (7,811)
After tax fraud loss - 2,925
After tax insurance
proceeds (2,618) -
After tax FDIC special
assessment 3,006 -
After tax (gain) loss on sale
of wealth unit (797) -
After tax (gain) loss on sale
of SNC loans 3,921 -
After tax SERP accrual 1,300 -
----- --
Core net income (loss)
available to common
shareholders $(5,667) $91,203
======= =======
Earnings per share $(3.61) $0.42
After tax goodwill impairment
charge 2.78 -
After tax other than
temporary impairment
charge on investments 0.67 0.84
After tax (gain) loss on
investment securities 0.02 (0.01)
After tax unrealized fair
market value (gain) loss on
NPB Capital Trust II
Preferred Securities 0.03 (0.10)
After tax fraud loss - 0.04
After tax insurance
proceeds (0.03) -
After tax FDIC special
assessment 0.03 -
After tax (gain) loss on sale
of wealth unit (0.01) -
After tax (gain) loss on sale
of SNC loans 0.04 -
After tax SERP accrual 0.01 -
---- --
Core net income (loss)
available to common
shareholders $(0.06) $1.19
====== =====
Financial Update for NATL PENN BCSHS (NPBC) FOR 12/31/09
PAGE: 1 OF 5 AS OF AS OF AS OF
BALANCE SHEET - ASSETS ($000s) 12/31/2009 9/30/2009 6/30/2009
(unaudited) (unaudited) (unaudited)
Cash & Cash Equivalents $603,257 $400,191 $348,371
-------- -------- --------
Held to Maturity Securities 601,923 612,214 653,184
------- ------- -------
Securities Available for Sale 1,578,618 1,636,023 1,504,155
--------- --------- ---------
Total Securities 2,180,541 2,248,237 2,157,339
--------- --------- ---------
Total Cash and Securities 2,783,798 2,648,428 2,505,710
--------- --------- ---------
Loans & Leases Held for Sale 18,028 9,279 23,326
------ ----- ------
Loans & Leases Held for
Investment 6,006,473 6,190,405 6,283,523
--------- --------- ---------
Total Loans and Leases 6,024,501 6,199,684 6,306,849
--------- --------- ---------
Loan and Lease Loss Reserve (146,271) (125,490) (98,313)
-------- -------- -------
Premises and Equipment, net 112,744 113,712 114,635
------- ------- -------
Premises Held for Sale 812 812 812
--- --- ---
Bank Owned Life Insurance 198,131 197,132 196,001
------- ------- -------
Goodwill 281,624 555,789 555,964
------- ------- -------
Other Intangibles 30,943 32,854 33,654
------ ------ ------
Total Intangible Assets 312,567 588,643 589,618
------- ------- -------
Unconsolidated Investments
Under the Equity Method 12,821 11,718 13,279
------ ------ ------
Other Real Estate Owned and
Repossessed Assets 4,208 826 1,359
----- --- -----
Other Assets 180,599 104,845 127,963
------- ------- -------
Total Assets $9,483,910 $9,740,310 $9,757,913
========== ========== ==========
BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits $5,985,202 $6,080,203 $6,070,056
---------- ---------- ----------
Noninterest-bearing Deposits 753,650 718,459 741,598
------- ------- -------
Borrowings 1,501,027 1,414,817 1,525,578
--------- --------- ---------
Subordinated Debt (Trust
Preferred Securities) 132,407 136,076 129,827
------- ------- -------
Other Liabilities 42,156 30,649 74,231
------ ------ ------
Total Liabilities $8,414,442 $8,380,204 $8,541,290
========== ========== ==========
BALANCE SHEET - EQUITY ($000s)
Preferred Stock $147,920 $144,738 $144,517
-------- -------- --------
Common Stock 1,225,636 1,227,032 1,072,921
--------- --------- ---------
Retained (Deficit) Earnings (302,121) (16,908) 52,143
-------- ------- ------
Accumulated Other
Comprehensive income (loss) (1,967) 5,244 (52,958)
------ ----- -------
Treasury Stock - - -
-- -- --
Total Shareholders Equity $1,069,468 $1,360,106 $1,216,623
========== ========== ==========
MEMO ITEMS
Held to Maturity Securities
(Fair Value) $603,915 $635,398 $618,282
-------- -------- --------
Common Book Value Per Share $7.33 $9.67 $11.23
----- ----- ------
Total Book Value Per Share $8.51 $10.82 $12.74
----- ------ ------
Tangible Common Book Value Per
Share $4.84 $4.99 $5.05
----- ----- -----
Tangible Total Book Value Per
Share $6.02 $6.14 $6.57
----- ----- -----
EOP Common Shares Outstanding
(excluding Treasury shares) 125,713,668 125,658,738 95,507,091
----------- ----------- ----------
Treasury Shares Held By
Company - - -
-- -- --
Common Stock Dividends (total
$ in period) $1,257 $4,085 $4,199
------ ------ ------
Dividends per Common Share $0.0100 $0.0500 $0.0500
------- ------- -------
Number of Shares to be
Repurchased in Plans - - -
-- -- --
Number of Shares Repurchased
During Period - - -
-- -- --
Average Price of Repurchased
Shares $- $- $-
-- -- --
PAGE: 1 OF 5 AS OF AS OF
BALANCE SHEET - ASSETS ($000s) 3/31/2009 12/31/2008
(unaudited) (unaudited)
Cash & Cash Equivalents $389,024 $195,830
-------- --------
Held to Maturity Securities 299,645 326,090
------- -------
Securities Available for Sale 1,614,393 1,593,799
--------- ---------
Total Securities 1,914,038 1,919,889
--------- ---------
Total Cash and Securities 2,303,062 2,115,719
--------- ---------
Loans & Leases Held for Sale 17,806 3,605
------ -----
Loans & Leases Held for
Investment 6,347,246 6,312,269
--------- ---------
Total Loans and Leases 6,365,052 6,315,874
--------- ---------
Loan and Lease Loss Reserve (86,273) (84,006)
------- -------
Premises and Equipment, net 116,885 119,924
------- -------
Premises Held for Sale 812 3,768
--- -----
Bank Owned Life Insurance 194,883 193,811
------- -------
Goodwill 556,031 558,252
------- -------
Other Intangibles 35,557 37,496
------ ------
Total Intangible Assets 591,588 595,748
------- -------
Unconsolidated Investments
Under the Equity Method 12,966 11,874
------ ------
Other Real Estate Owned and
Repossessed Assets 1,862 1,552
----- -----
Other Assets 132,205 129,167
------- -------
Total Assets $9,633,042 $9,403,431
========== ==========
BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits $5,929,420 $5,596,617
---------- ----------
Noninterest-bearing Deposits 730,814 793,269
------- -------
Borrowings 1,584,684 1,607,290
--------- ---------
Subordinated Debt (Trust
Preferred Securities) 129,877 127,980
------- -------
Other Liabilities 82,145 98,280
------ ------
Total Liabilities $8,456,940 $8,223,436
========== ==========
BALANCE SHEET - EQUITY ($000s)
Preferred Stock $144,297 $144,076
-------- --------
Common Stock 1,019,548 1,003,110
--------- ---------
Retained (Deficit) Earnings 65,765 65,194
------ ------
Accumulated Other
Comprehensive income (loss) (53,508) (32,385)
------- -------
Treasury Stock - -
-- --
Total Shareholders Equity $1,176,102 $1,179,995
========== ==========
MEMO ITEMS
Held to Maturity Securities
(Fair Value) $271,423 $284,608
-------- --------
Common Book Value Per Share $12.43 $12.83
------ ------
Total Book Value Per Share $14.17 $14.62
------ ------
Tangible Common Book Value Per
Share $5.30 $5.45
----- -----
Tangible Total Book Value Per
Share $7.04 $7.24
----- -----
EOP Common Shares Outstanding
(excluding Treasury shares) 83,005,701 80,731,751
---------- ----------
Treasury Shares Held By
Company - -
-- --
Common Stock Dividends (total
$ in period) $13,800 $13,805
------- -------
Dividends per Common Share $0.1700 $0.1725
------- -------
Number of Shares to be
Repurchased in Plans - -
-- --
Number of Shares Repurchased
During Period - -
-- --
Average Price of Repurchased
Shares $- $-
-- --
Financial Update for NATL PENN BCSHS (NPBC) FOR 12/31/09
PAGE: 2 OF 5
FOR FOR FOR FOR
QUARTER QUARTER QUARTER QUARTER
ENDED ENDED ENDED ENDED
INCOME STATEMENT
($000s) 12/31/2009 9/30/2009 6/30/2009 3/31/2009
(unaudited) (unaudited) (unaudited) (unaudited)
Interest Income $103,948 $105,385 $105,848 $105,962
-------- -------- -------- --------
Interest Expense 36,503 40,042 44,768 47,321
------ ------ ------ ------
Net Interest
Income 67,445 65,343 61,080 58,641
------ ------ ------ ------
Provision for
Loan and Lease
Losses 47,000 52,000 37,500 17,525
------ ------ ------ ------
Net Interest
Income after
Provision for
Loan and Lease
Losses 20,445 13,343 23,580 41,116
------ ------ ------ ------
Wealth
Management
Income 7,406 7,670 7,232 6,615
----- ----- ----- -----
Service Charges
on Deposits 6,141 6,247 6,071 5,800
----- ----- ----- -----
Cash Management
and Electronic
Banking Fees 4,237 4,041 3,995 3,648
----- ----- ----- -----
Mortgage Banking
Income 1,337 1,884 2,834 2,420
----- ----- ----- -----
Insurance
Commissions and
Fees 3,970 3,771 4,016 3,957
----- ----- ----- -----
Bank Owned Life
Insurance Income 1,441 1,131 1,275 1,072
----- ----- ----- -----
Equity in
Unconsolidated
Investments 1,706 (525) 314 1,091
----- ---- --- -----
Net gains
(losses) from
Fair Value
changes 3,669 (6,249) 51 (1,898)
----- ------ -- ------
Net gains
(losses)on
Investment
Securities 289 (863) - (2,284)
--- ---- -- ------
Total Impairment
Losses on
Investment
Securities (2,165) (84,704) (7,136) (7,785)
------ ------- ------ ------
Non Credit-
related
Impairment on
Securities not
Expected to be
Sold - - - -
-- -- -- --
Net Impairment
Losses on
Investment
Securities (2,165) (84,704) (7,136) (7,785)
------ ------- ------ ------
Other Non-
Interest Income (1,784) 3,315 2,659 2,568
------ ----- ----- -----
Total Non-
Interest Income
(Loss) 26,247 (64,282) 21,311 15,204
------ ------- ------ ------
Salaries, Wages
and Employee
Benefits 30,864 30,505 32,249 32,017
------ ------ ------ ------
Net Premises and
Equipment
Expense 7,962 8,104 7,335 8,598
----- ----- ----- -----
Amortization of
Intangibles 1,912 1,899 1,903 1,940
----- ----- ----- -----
Goodwill
Impairment 275,000 - - -
------- -- -- --
Other Non-
Interest Expense 21,381 15,672 16,540 14,138
------ ------ ------ ------
FDIC Insurance
special
assessment - - 4,625 -
-- -- ----- --
Fraud Expense
(Recovery) - (4,028) - -
-- ------ -- --
Total Non-
Interest
Expense 337,119 52,152 62,652 56,693
------- ------ ------ ------
Net Income
(Loss) Before
Taxes (290,427) (103,091) (17,761) (373)
-------- -------- ------- ----
Income Tax
(Benefit)
Expense (9,227) (40,000) (10,213) (4,173)
------ ------- ------- ------
Net Income
(Loss) (281,200) (63,091) (7,548) 3,800
-------- ------- ------ -----
Preferred
dividends/
accretion of
preferred
discount (2,095) (2,096) (2,095) (2,054)
------ ------ ------ ------
Net Income
(Loss) available
to Common
Shareholders $(283,295) $(65,187) $(9,643) $1,746
========= ======== ======= ======
------- ------- ------- -------
Net Interest
Income (FTE) $73,007 $70,972 $66,777 $64,437
------- ------- ------- -------
EARNINGS PER SHARE:
Basic earnings
(loss) $(2.24) $(0.63) $(0.09) $0.05
------ ------ ------ -----
Basic earnings
(loss) available
to common
shareholders $(2.25) $(0.65) $(0.11) $0.02
------ ------ ------ -----
Diluted earnings
(loss) $(2.24) $(0.63) $(0.09) $0.05
------ ------ ------ -----
Diluted earnings
(loss) available
to common
shareholders $(2.25) $(0.65) $(0.11) $0.02
------ ------ ------ -----
Average Shares
Basic 125,697,822 100,064,355 87,415,723 81,497,806
----------- ----------- ---------- ----------
Average Shares
Diluted 125,697,822 100,064,355 87,415,723 81,891,272
----------- ----------- ---------- ----------
SUPPLEMENTAL DATA ($000s)
Return on Avg.
Assets
(annualized) -11.41% -2.57% -0.31% 0.16%
------ ----- ----- ----
Return on
Avg.Total Equity
(annualized) -82.16% -20.01% -2.52% 1.31%
------ ------ ----- ----
Return on Avg.
Common Equity
(annualized) -91.98% -22.63% -2.87% 1.49%
------ ------ ----- ----
Return on Avg.
Total Tangible
Equity
(annualized) -144.25% -37.82% -4.97% 2.64%
------- ------ ----- ----
Return on Avg.
Common Tangible
Equity
(annualized) -177.50% -48.40% -6.52% 3.51%
------- ------ ----- ----
Reconciliation Table for Non-GAAP Financial Measures
Return on average
total shareholders'
equity -82.16% -20.01% -2.52% 1.31%
Effect of goodwill
and intangibles -62.08% -17.81% -2.45% 1.33%
------ ------ ----- ----
Return on average
total tangible
equity -144.25% -37.82% -4.97% 2.64%
Average total tangible equity excludes acquisition related average
goodwill and intangibles:
Average total
shareholders'
equity $1,357,801 $1,250,619 $1,199,198 $1,176,494
Average goodwill
