National Penn Bancshares, Inc. Reports Financial Results
* Reuters is not responsible for the content in this press release.
BOYERTOWN, Pa., April 29 /PRNewswire-FirstCall/ -- National Penn Bancshares,
Inc. (Nasdaq: NPBC) reported first quarter 2009 net income available to common
shareholders of $1.75 million, or $0.02 per diluted share, after payment of
the U.S. Treasury's Capital Purchase Program Series B preferred stock
dividend. Excluding two non-cash items, an other-than-temporary impairment
charge of $0.06 per diluted share and a negative fair value mark of $0.02 per
diluted share on NPB Capital Trust II preferred securities, core earnings for
first quarter 2009 were $0.10 per diluted share. In comparison, for the first
quarter 2008, net income was $21.59 million, or $0.33 per diluted share.
Including the two items briefly noted above, first quarter 2009 results were
adversely impacted by three key items (pre-tax):
-- A non-cash other-than-temporary credit-related impairment charge of
$7.79 million on collateralized debt obligation (CDO) investments in
pooled trust preferred securities.
-- A first quarter 2009 provision for credit losses of $17.53 million.
-- A negative fair value mark of $1.90 million on NPB Capital Trust II
preferred securities.
As of March 31, 2009, National Penn's total assets were $9.63 billion and
total deposits were $6.66 billion. The allowance for loan and lease losses as
of March 31, 2009 was $86.27 million, which represented 1.36% of total loans
and leases outstanding of $6.37 billion. From a regulatory capital
standpoint, National Penn, and each of National Penn's banking subsidiaries,
National Penn Bank and Christiana Bank & Trust Company, all continue to be
"well capitalized" under all guidelines imposed by financial institution
regulators. National Penn's Tier 1 Risk-Based Capital and Total Risk-Based
Capital Ratios are 10.44% and 11.61% respectively, are in excess of well
capitalized minimum requirements of 6.00% and 10.00%, respectively.
Net loan growth for first quarter 2009 was $49.18 million. First quarter
deposit growth for 2009 was in excess of $270 million, which continues to
reflect the confidence clients have in the overall strength of National Penn.
Commenting on first quarter 2009 results, Glenn E. Moyer, National Penn
president and chief executive officer, said, "Our financial results continue
to be challenged by the unprecedented economic situation at the local,
national, and global levels. We currently are anticipating minimal economic
recovery in 2009. Despite these strong negative headwinds, National Penn's
core earnings remain sound. While we found it necessary to take further
non-cash charges on investment securities and historically elevated charges
for credit losses, we believe our overall performance continues to show the
financial strength of National Penn. We're pleased that we've been able to
grow our loans in this environment at a time when other financial institutions
are experiencing a decline in their overall loan portfolios. National Penn
has not stopped lending, and will continue to actively lend money to, and
gather deposits from, qualified consumers and businesses."
About National Penn Bancshares, Inc.:
National Penn Bancshares, Inc., with $9.6 billion in assets, is the fourth
largest bank holding company based in Pennsylvania. In addition, wealth
assets under administration or management amount to $7.9 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
Investors Trust Company; National Penn Capital Advisors, Inc.; Vantage
Investment Advisors, LLC; Institutional Advisors LLC; National Penn Leasing
Company; National Penn Insurance Agency, Inc.; Caruso Benefits Group, Inc.;
and Higgins Insurance Associates, 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
excluding one-time 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," "plan,'' "seek," "intend,'' or "anticipate'' or the
negative thereof or comparable terminology, and include discussions of
strategy, financial projections and estimates and 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: National Penn's obligations under the U.S. Treasury's TARP
Capital Purchase Program; ability to obtain new capital and locate growth
opportunities; the ineffectiveness of National Penn's business strategy due to
changes in current or future market conditions; the effects of competition,
and of changes in laws and regulations on competition, including industry
consolidation and development of competing financial products and services;
interest rate movements; the performance of National Penn's investment
portfolio; inability to achieve merger-related synergies; difficulties in
integrating distinct business operations, including information technology
difficulties; disruption from announced transactions, and resulting
difficulties in maintaining relationships with customers and employees; and
challenges in establishing and maintaining operations in new markets. The
foregoing review of important factors should be read in conjunction with the
risk factors and other cautionary statements included 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
Dollars in thousands, except per Three Months Ended March 31,
share data 2009 2008 % Change
-------------------------------- ---- ---- --------
STATEMENTS OF CONDITION
----------------------- ---------- ---------- ---
Total assets $9,633,042 $9,108,114 5.8%
Investment securities 1,914,038 1,941,582 -1.4%
Loans and leases 6,365,052 6,000,252 6.1%
Deposits 6,660,234 6,103,567 9.1%
Short-term borrowings 653,805 678,581 -3.7%
Long-term borrowings 1,060,756 1,161,493 -8.7%
Shareholders' equity 1,176,102 1,046,037 12.4%
Book value per share 14.17 14.20 -0.2%
Common Book value per share 12.43 13.17 -5.6%
--------
EARNINGS
-------- -------- -------- ----
Total interest income $105,951 $110,403 -4.0%
Total interest expense 47,321 53,989 -12.4%
---------------------- ------ ------ -----
Net interest income 58,630 56,414 3.9%
Provision for loan and lease losses 17,525 3,410 413.9%
----------------------------------- ------ ----- -----
Net interest income after provision
for loan and lease losses 41,105 53,004 -22.4%
Other income 15,214 24,211 -37.2%
Other expenses 56,693 48,914 15.9%
-------------- ------ ------ ----
Income before income taxes (374) 28,301 -101.3%
Income taxes (4,173) 6,708 -162.2%
------------ ------ ----- ------
Net income $3,799 $21,593 -82.4%
Preferred dividends/accretion of
preferred discount (2,054) - -
--------------------------------- ------ --- ---
Net Income Available to Common
Shareholders 1,745 21,593 -91.9%
============================== ===== ====== =====
------------------
PERFORMANCE RATIOS
------------------ ---- ---- ----
Net yield on earning assets 3.13% 3.44% -9.0%
Return on average assets 0.16% 1.10% -85.5%
Return on average shareholders' equity 1.31% 10.54% -87.6%
Return on average tangible equity (1) 2.64% 21.84% -87.9%
---------
PER SHARE
--------- ----- ----- -----
Basic earnings available to common
shareholders $0.02 $0.33 -93.9%
Diluted earnings available to common
shareholders $0.02 $0.33 -93.9%
Dividends paid in cash $0.1700 $0.1700 0.0%
Average shares - basic 81,497,806 65,190,940 25.0%
Average shares - diluted 81,891,272 65,899,893 24.3%
--------------------------------------
(1) Reconciliation Tables for Non-GAAP Financial Measures
Return on average shareholders'
equity 1.31% 10.54%
Effect of goodwill and
intangibles 1.33% 11.30%
---- -----
Return on average tangible
equity 2.64% 21.84%
==== =====
Average tangible equity excludes
acquisition related average
goodwill and intangibles:
Average shareholders' equity $1,176,494 $823,757
Average goodwill and
intangibles (592,816) (426,039)
-------- --------
Average total tangible equity $583,678 $397,718
======== ========
Net Income available to common
shareholders $1,745 $21,593
After tax unrealized fair
market value loss on NPB
Capital Trust II Preferred
Securities 1,234 658
After tax other than temporary
Impairment charge on CDO
investment 5,060 -
----- ---
Core net income $8,039 $22,251
====== =======
Diluted earnings per share $0.02 $0.33
After tax unrealized fair market
value loss on NPB Capital
Trust II Preferred Securities 0.02 0.01
After tax other than temporary
impairment charge on CDO
investment 0.06 -
---- ---
Core diluted earnings per share $0.10 $0.34
===== =====
Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/09
BALANCE SHEET - ASSETS ($000s) AS OF AS OF AS OF
3/31/2009 12/31/2008 9/30/2008
(unaudited) (unaudited) (unaudited)
Cash & Cash Equivalents $389,024 $195,830 $152,909
-------- -------- --------
Held to Maturity Securities 299,645 326,090 391,725
------- ------- -------
Securities Available for Sale 1,614,393 1,593,799 1,587,852
--------- --------- ---------
Total Securities 1,914,038 1,919,889 1,979,577
--------- --------- ---------
Total Cash and Securities 2,303,062 2,115,719 2,132,486
--------- --------- ---------
Loans & Leases Held for Sale 17,806 3,605 5,317
------ ----- -----
Loans & Leases Held for
Investment 6,347,246 6,312,269 6,189,567
--------- --------- ---------
Total Loans and Leases 6,365,052 6,315,874 6,194,884
--------- --------- ---------
Loan Loss Reserve (86,273) (84,006) (83,696)
------- ------- -------
Premises and Equipment, net 116,885 119,924 119,705
------- ------- -------
Premises held for sale 812 3,768 3,890
--- ----- -----
Bank Owned Life Insurance 194,883 193,811 192,594
------- ------- -------
Goodwill 556,031 558,252 546,270
------- ------- -------
Other Intangibles 35,557 37,496 38,768
------ ------ ------
Total Intangible Assets 591,588 595,748 585,038
------- ------- -------
Unconsolidated Investments Under
the Equity Method 12,966 11,874 11,470
------ ------ ------
Other Real Estate Owned 1,862 783 1,129
----- --- -----
Other Assets 132,205 129,936 159,295
------- ------- -------
Total Assets $9,633,042 $9,403,431 $9,316,795
========== ========== ==========
BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits $5,929,420 $5,596,617 $5,437,824
---------- ---------- ----------
Noninterest-bearing Deposits $730,814 $793,269 $782,819
-------- -------- --------
Borrowings 1,584,684 1,607,290 1,838,928
--------- --------- ---------
Subordinated Debt (Trust
Preferred Securities) 129,877 127,980 134,507
------- ------- -------
Other Liabilities 82,145 98,280 76,704
------ ------ ------
Total Liabilities $8,456,940 $8,223,436 $8,270,782
========== ========== ==========
BALANCE SHEET - EQUITY ($000s)
Preferred Stock $144,297 $144,076 $-
-------- -------- --
Common Stock 1,019,548 1,003,110 980,894
--------- --------- -------
Retained Earnings 65,765 65,194 115,291
------ ------ -------
Accumulated Other
Comprehensive Income $(53,508) $(32,385) $(50,172)
-------- -------- --------
Treasury Stock - - -
--- --- ---
Total Shareholders Equity $1,176,102 $1,179,995 $1,046,013
========== ========== ==========
MEMO ITEMS
Held to Maturity Securities
(Fair Value) $271,423 $284,608 $305,164
-------- -------- --------
Common Book Value Per Share $12.43 $12.83 $13.09
------ ------ ------
Total Book Value Per Share $14.17 $14.62 $-
------ ------ --
Tangible Common Book
Value Per Share $5.30 $5.45 $5.77
----- ----- -----
Tangible Total Book
Value Per Share $7.04 $7.24 $-
----- ----- --
EOP Common Shares
Outstanding (excluding
Treasury shares) 83,005,701 80,731,751 79,886,282
---------- ---------- ----------
Treasury Shares Held
By Company - - -
--- --- ---
Common Stock
Dividends (total $
in period) $13,800 $13,805 $13,541
------- ------- -------
Dividends per Common Share $0.1700 $0.1725 $0.1700
------- ------- -------
Number of Shares to be
Repurchased in Plans 3,779,456 3,779,456 3,779,456
--------- --------- ---------
Number of Shares
Repurchased During
Period - - -
--- --- ---
Average Price of
Repurchased Shares $- $- $-
-- -- --
BALANCE SHEET - ASSETS ($000s) AS OF AS OF
6/30/2008 3/31/2008
(unaudited) (unaudited)
Cash & Cash Equivalents $205,457 $201,655
-------- --------
Held to Maturity Securities 406,653 271,381
------- -------
Securities Available
for Sale 1,536,785 1,669,200
--------- ---------
Total Securities 1,943,438 1,941,582
--------- ---------
Total Cash and Securities 2,148,895 2,142,236
--------- ---------
Loans & Leases Held
for Sale 5,269 5,711
----- -----
Loans & Leases Held for
Investment 6,114,733 5,994,541
--------- ---------
Total Loans and Leases 6,120,002 6,000,252
--------- ---------
Loan Loss Reserve (81,642) (81,631)
------- -------
Premises and Equipment, net 122,901 123,050
------- -------
Premises held for sale 4,188 3,894
----- -----
Bank Owned Life Insurance 190,892 189,050
------- -------
Goodwill 545,460 545,484
------- -------
Other Intangibles 40,173 42,139
------ ------
Total Intangible Assets 585,633 587,623
------- -------
Unconsolidated
Investments Under the
Equity Method 10,985 12,609
------ ------
Other Real Estate Owned 842 326
--- ---
Other Assets 138,659 130,705
------- -------
Total Assets $9,241,355 $9,108,114
========== ==========
BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits $5,285,629 $5,335,413
---------- ----------
Noninterest-bearing
Deposits $798,088 $768,154
-------- --------
Borrowings 1,854,775 1,698,974
--------- ---------
Subordinated Debt (Trust
Preferred Securities) 142,148 141,009
------- -------
Other Liabilities 114,320 118,527
------- -------
Total Liabilities $8,194,960 $8,062,077
========== ==========
BALANCE SHEET - EQUITY ($000s)
Preferred Stock $- $-
-- --
Common Stock 978,546 975,744
------- -------
Retained Earnings 109,602 95,859
------- ------
Accumulated Other
Comprehensive Income $(41,753) $(25,485)
-------- --------
Treasury Stock - (81)
--- ---
Total Shareholders Equity $1,046,395 $1,046,037
========== ==========
MEMO ITEMS
Held to Maturity Securities
(Fair Value) $371,788 $269,382
-------- --------
Common Book Value
Per Share $13.15 $13.17
------ ------
Total Book Value Per Share $- $-
-- --
Tangible Common Book
Value Per Share $5.78 $5.77
----- -----
Tangible Total Book
Value Per Share $- $-
-- --
EOP Common Shares
Outstanding (excluding
Treasury shares) 79,603,356 79,410,734
---------- ----------
Treasury Shares Held
By Company - 5,064
--- -----
Common Stock
Dividends (total $
in period) $13,509 $8,825
------- ------
Dividends per Common Share $0.1700 $0.1700
------- -------
Number of Shares to be
Repurchased in Plans 3,779,456 3,779,456
--------- ---------
Number of Shares
Repurchased During
Period - 33,587
--- ------
Average Price of
Repurchased Shares $- $16.38
-- ------
Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/09
FOR QUARTER FOR QUARTER FOR QUARTER
ENDED ENDED ENDED
INCOME STATEMENT ($000s) 3/31/2009 12/31/2008 9/30/2008
(unaudited) (unaudited) (unaudited)
Interest Income $105,951 $115,613 $120,717
-------- -------- --------
Interest Expense 47,321 52,515 53,769
------ ------ ------
Net Interest Income 58,630 63,098 66,948
------ ------ ------
Loan and Lease Loss
Provision 17,525 18,500 6,876
------ ------ -----
Net Interest Income after
Provision for Loan and
Lease Losses 41,105 44,598 60,072
------ ------ ------
Wealth Management Income 6,615 7,543 8,239
----- ----- -----
Service Charges on
Deposits 5,800 6,685 6,880
----- ----- -----
Cash Management and
Electronic Banking Fees 3,648 3,826 3,917
----- ----- -----
Mortgage Banking Income 2,420 856 882
----- --- ---
Insurance
Commissions and Fees 3,957 3,691 3,913
----- ----- -----
Bank Owned Life
Insurance Income 1,072 1,217 1,702
----- ----- -----
Equity in
Unconsolidated
Investments 1,091 1,550 1,574
----- ----- -----
Net gains (losses) from
fair value changes (1,898) 6,527 7,641
------ ----- -----
Net gains (losses) on
investment securities (2,284) 12 276
----- -- ---
Other Non-
Interest Income 2,578 1,385 1,826
----- ----- -----
Other than
temporary
impairment on
investments (7,785) (79,496) (20,000)
------ ------- -------
Total Non-
Interest Income 15,214 (46,204) 16,850
------ ------- ------
Salaries, Wages and
Employee Benefits 32,017 30,807 31,998
------ ------ ------
Net Premises and
Equipment Expense 8,598 7,108 8,416
----- ----- -----
Amortization of
Intangibles 1,940 1,996 1,981
----- ----- -----
Other Non-
Interest Expense 14,138 15,293 11,692
------ ------ ------
Fraud Expense - 4,500 -
--- ----- ---
Total Non-
Interest Expense 56,693 59,704 54,087
------ ------ ------
Net Income Before Taxes (374) (61,310) 22,835
---- ------- ------
Income Tax Expense (4,173) (25,546) 3,607
------ ------- -----
Net Income 3,799 (35,764) 19,228
===== ======= ======
Preferred dividends/
accretion of
preferred discount (2,054) (417) -
------ ---- ---
Net Income available to
Common Shareholders $1,745 $(36,181) $19,228
======================= ====== ======== =======
------- ------- -------
Net Interest
Income (FTE) $64,426 $68,952 $72,532
------- ------- -------
EARNINGS PER SHARE:
Basic
----- ------ -----
Net income $0.02 $(0.45) $0.24
----- ------ -----
Diluted
----- ------ -----
Net income $0.02 $(0.45) $0.23
----- ------ -----
Average Shares Basic 81,497,806 79,341,618 79,741,702
---------- ---------- ----------
Average Shares Diluted 81,891,272 79,341,618 80,495,907
---------- ---------- ----------
SUPPLEMENTAL DATA ($000s)
Return on Avg. Assets
(annualized) 0.16% -1.53% 0.83%
---- ----- ----
Return on Avg. Total
Equity (annualized) 1.31% -13.20% 7.29%
---- ------ ----
Return on Avg. Common
Equity (annualized) 1.49% -13.61% 7.29%
---- ------ ----
Return on Avg.
Total Tangible
Equity (annualized) 2.64% -28.83% 16.50%
---- ------ -----
Return on Avg.
Common Tangible
Equity (annualized) 3.51% -30.86% 16.50%
---- ------ -----
Reconciliation Table for Non-GAAP
Financial Measures
Return on average total
shareholders' equity 1.31% -13.20% 7.29%
Effect of goodwill and
intangibles 1.33% -15.62% 9.21%
---- ------ ----
Return on average total
tangible equity 2.64% -28.83% 16.50%
Average total tangible
equity excludes
acquisition related
average goodwill and
intangibles:
Average total
shareholders' equity $1,176,494 $1,077,773 $1,049,144
Average goodwill and
intangibles (592,816) (584,221) (585,544)
-------- -------- --------
Average total
tangible equity 583,678 493,552 463,600
Return on average common
shareholders' equity 1.49% -13.61%
Effect of goodwill and
intangibles 2.02% -17.25%
---- ------
Return on average common
tangible equity 3.51% -30.86%
Average common tangible equity
excludes acquisition related
average goodwill and
intangibles:
Average common
shareholders' equity $1,031,883 $1,045,212 -
Average goodwill and
intangibles (592,816) (584,221) -
-------- -------- ---
Average common
tangible equity 439,067 460,991
FOR QUARTER FOR QUARTER
ENDED ENDED
INCOME STATEMENT ($000s) 6/30/2008 3/31/2008
(unaudited) (unaudited)
Interest Income $119,503 $110,403
-------- --------
Interest Expense 53,225 53,989
------ ------
Net Interest Income 66,278 56,414
------ ------
Loan and Lease Loss
Provision 3,711 3,410
----- -----
Net Interest Income after
Provision for Loan and
Lease Losses 62,567 53,004
------ ------
Wealth Management Income 8,515 7,608
----- -----
Service Charges on
Deposits 6,324 5,261
----- -----
Cash Management and
Electronic Banking Fees 3,715 2,928
----- -----
Mortgage Banking Income 978 591
--- ---
Insurance
Commissions and Fees 3,968 3,806
----- -----
Bank Owned Life
Insurance Income 1,842 1,580
----- -----
Equity in
Unconsolidated
Investments 810 612
--- ---
Net gains (losses) from
fair value changes (1,139) (1,012)
Net gains (losses) on
investment securities 384 -
--- -----
Other Non-
Interest Income 2,504 2,837
----- -----
Other than
temporary
impairment on
investments - -
--- ---
Total Non-
Interest Income 27,901 24,211
------ ------
Salaries, Wages and
Employee Benefits 31,300 29,227
------ ------
Net Premises and
Equipment Expense 9,019 8,007
----- -----
Amortization of
Intangibles 1,964 1,582
----- -----
Other Non-
Interest Expense 11,543 10,098
------ ------
Fraud Expense - -
--- ---
Total Non-
Interest Expense 53,826 48,914
------ ------
Net Income Before Taxes 36,642 28,301
------ ------
Income Tax Expense 9,428 6,708
----- -----
Net Income 27,214 21,593
====== ======
Preferred dividends/
accretion of
preferred discount - -
--- ---
Net Income available to
Common Shareholders $27,214 $21,593
======================= ======= =======
------- -------
Net Interest
Income (FTE) $71,176 $60,999
------- -------
EARNINGS PER SHARE:
Basic
----- -----
Net income $0.34 $0.33
----- -----
Diluted
----- -----
Net income $0.34 $0.33
----- -----
Average Shares Basic 79,514,136 65,190,940
---------- ----------
Average Shares Diluted 80,626,387 65,899,893
---------- ----------
SUPPLEMENTAL DATA ($000s)
Return on Avg. Assets
(annualized) 1.20% 1.10%
---- ----
Return on Avg. Total
Equity (annualized) 10.42% 10.54%
----- -----
Return on Avg. Common
Equity (annualized) 10.42% 10.54%
----- -----
Return on Avg.
Total Tangible
Equity (annualized) 23.69% 21.84%
----- -----
Return on Avg.
Common Tangible
Equity (annualized) 23.69% 21.84%
----- -----
Reconciliation Table
for Non-GAAP Financial Measures
Return on average total
shareholders' equity 10.42% 10.54%
Effect of goodwill and
intangibles 13.27% 11.30%
----- -----
Return on average total
tangible equity 23.69% 21.84%
Average total tangible
equity excludes
acquisition related
average goodwill and
intangibles:
Average total
shareholders' equity $1,047,583 $823,757
Average goodwill and
intangibles (586,729) (426,039)
-------- --------
Average total
tangible equity 460,854 397,718
Return on average common
shareholders' equity
Effect of goodwill and
intangibles
Return on
average common
tangible equity
Average common tangible equity
Excludes acquisition
related average
goodwill and
intangibles:
Average common
shareholders' equity - -
Average goodwill and
intangibles - -
--- ---
Average common
tangible equity
Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/09
FOR QUARTER FOR QUARTER FOR QUARTER
ENDED ENDED ENDED
CHARGEOFFS ($000s) 3/31/2009 12/31/2008 9/30/2008
(unaudited) (unaudited) (unaudited)
Loan Chargeoffs $16,044 $18,946 $7,097
------- ------- ------
Recoveries on Loans (786) (756) (2,276)
---- ---- ------
Net Loan Chargeoffs $15,258 $18,190 $4,821
------- ------- ------
Net Loan Chargeoffs to Average
Loans (non-annualized) 0.24% 0.29% 0.08%
---- ---- ----
NET CHARGE OFF ASSETS-DETAIL
Commercial, Financial and
Agricultural $(6,597) $(10,901)
Real Estate-Permanent 6 (378)
Real Estate-Construction (1,234) (4,103)
Leases (88) -
Residential Mortgages (565) (1,534)
Consumer (6,633) (1,048)
Overdraft (147) (226)
---- ----
Net Loans Charged-off $(15,258) $(18,190)
======== ========
AS OF AS OF AS OF
ASSET QUALITY AND OTHER DATA ($000s) 3/31/2009 12/31/2008 9/30/2008
(unaudited) (unaudited) (unaudited)
Nonaccrual Loans $59,871 $31,972 $25,562
------- ------- -------
Renegotiated Loans 614 623 628
--- --- ---
Other Real Estate Owned &
Repossessed Assets 1,862 1,552 1,623
----- ----- -----
Total Non-performing Assets $62,347 $34,147 $27,813
------- ------- -------
Loans 90+ Days Past Due &
Still Accruing 2,659 2,991 2,551
----- ----- -----
Non-performing + Loans 90
Days Past Due $65,006 $37,138 $30,364
------- ------- -------
Allowance for Loan and Lease
Losses $86,273 $84,006 $83,696
------- ------- -------
Coverage Ratio 132.7% 226.2% 275.6%
----- ----- -----
NON PERFORMING ASSETS-DETAIL
Commercial, Financial and
Agricultural $26,479 $11,657
Real Estate-Permanent 2,327 1,730
Real Estate-Construction 18,357 10,884
Leases 789 600
Residential Mortgages 6,155 3,950
Consumer 7,402 4,557
Loans Past Due 90+Days 2,659 2,991
Total Other Repossessed Assets 838 769
--- ---
Total Non-performing Assets +
Loans 90 Days Past Due $65,006 $37,138
======= =======
AS OF AS OF AS OF
REGULATORY CAPITAL DATA ($000s) 3/31/2009 12/31/2008 9/30/2008
(unaudited) (unaudited) (unaudited)
Tier 1 Capital $764,426 $741,622 $644,185
-------- -------- --------
Tier 1 Ratio (%) 10.44% 10.65% 9.34%
----- ----- ----
Total Capital (Tier 1 + Tier 2) $854,019 $825,628 $728,068
-------- -------- --------
Total Capital Ratio (%) 11.61% 11.85% 10.56%
----- ----- -----
Total Risk-Adjusted Assets $7,324,455 $6,965,197 $6,897,519
---------- ---------- ----------
Tier 1 Leverage Ratio 8.62% 8.50% 7.43%
---- ---- ----
Tangible Common Equity to
Tangible Assets 4.87% 5.00% 5.28%
---- ---- ----
Tangible Equity to Tangible
Assets Ratio 6.46% 6.84% 5.28%
---- ---- ----
FOR QUARTER FOR QUARTER
ENDED ENDED
CHARGEOFFS ($000s) 6/30/2008 3/31/2008
(unaudited) (unaudited)
Loan Chargeoffs $4,508 $3,001
------ ------
Recoveries on Loans (808) (440)
---- ----
Net Loan Chargeoffs $3,700 $2,561
------ ------
Net Loan Chargeoffs to Average
Loans (non-annualized) 0.06% 0.05%
---- ----
NET CHARGE OFF ASSETS-DETAIL
Commercial, Financial and Agricultural
Real Estate-Permanent
Real Estate-Construction
Leases
Residential Mortgages
Consumer
Overdraft
Net Loans Charged-off
AS OF AS OF
ASSET QUALITY AND OTHER DATA ($000s) 6/30/2008 3/31/2008
(unaudited) (unaudited)
Nonaccrual Loans $18,566 $22,679
------- -------
Renegotiated Loans 631 -
--- ---
Other Real Estate Owned &
Repossessed Assets 842 326
--- ---
Total Non-performing Assets $20,039 $23,005
------- -------
Loans 90+ Days Past Due & Still
Accruing 2,586 1,140
----- -----
Non-performing + Loans 90 Days
Past Due $22,625 $24,145
------- -------
Allowance for Loan and Lease
Losses $81,642 $81,631
------- -------
Coverage Ratio 360.8% 338.1%
----- -----
NON PERFORMING ASSETS-DETAIL
Commercial, Financial and Agricultural
Real Estate-Permanent
Real Estate-Construction
Leases
Residential Mortgages
Consumer
Loans Past Due 90+Days
Total Other Repossessed Assets
Total Non-performing Assets +
Loans 90 Days Past Due
AS OF AS OF
REGULATORY CAPITAL DATA ($000s) 6/30/2008 3/31/2008
(unaudited) (unaudited)
Tier 1 Capital $642,223 $622,391
-------- --------
Tier 1 Ratio (%) 9.39% 9.11%
---- ----
Total Capital (Tier 1 + Tier 2) $723,865 $704,087
-------- --------
Total Capital Ratio (%) 10.59% 10.31%
----- -----
Total Risk-Adjusted Assets $6,837,963 $6,829,295
---------- ----------
Tier 1 Leverage Ratio 7.60% 8.50%
---- ----
Tangible Common Equity to
Tangible Assets 5.32% 5.38%
---- ----
Tangible Equity to Tangible
Assets Ratio 5.32% 5.38%
---- ----
Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/09
AS OF AS OF AS OF
PERIOD END BALANCES: 3/31/2009 12/31/2008 9/30/2008
(unaudited) (unaudited) (unaudited)
Earning Assets / Liabilities
Loan Breakdown: (Regulatory)
-----------------------------
Commercial/Industrial $1,182,486 $1,180,181 $1,136,007
---------- ---------- ----------
Commercial Real Estate 1,840,278 1,808,017 1,718,769
--------- --------- ---------
Residential Mortgage (including
multi-family) 1,515,548 1,526,276 1,530,419
--------- --------- ---------
Real Estate Construction and
Land Development 617,853 588,458 582,370
------- ------- -------
Home Equity (revolving
and 2nd lien) 800,304 791,975 782,061
------- ------- -------
Consumer (Loans to Individuals) 235,228 228,438 229,309
------- ------- -------
Other Loans 173,355 192,529 215,949
------- ------- -------
Total Loans (net of unearned) 6,365,052 6,315,874 6,194,884
--------- --------- ---------
Investment Securities 1,914,039 1,919,889 1,991,304
--------- --------- ---------
Other Earning Assets 39,622 38,946 63,117
------ ------ ------
Total Earning Assets (net of loan
loss reserve) $8,232,440 $8,190,703 $8,165,609
========== ========== ==========
Deposit Breakdown:
------------------
Savings $382,705 $362,709 $370,396
-------- -------- --------
NOW Accounts 967,221 1,010,532 899,281
------- --------- -------
Money Market Accounts 1,719,492 1,591,131 1,640,901
--------- --------- ---------
CDs $100m or less 1,730,061 1,760,030 1,673,683
--------- --------- ---------
CDs greater than $100m 1,129,941 872,216 853,560
--------- ------- -------
Total Int. Bearing Deposits 5,929,420 5,596,618 5,437,821
--------- --------- ---------
Short-Term Borrowings 653,805 651,307 859,415
------- ------- -------
Long-Term Debt 1,060,666 1,083,963 1,114,020
--------- --------- ---------
Total Int. Bearing Liabilities $7,643,891 $7,331,888 $7,411,256
========== ========== ==========
Loan Breakdown: (Internal)
--------------------------
Commercial Real Estate
Non Owner Occupied
- Permanent $782,840 $770,663 $707,272
-------- -------- --------
- Construction / Development 494,224 453,462 439,877
------- ------- -------
Owner Occupied
- Permanent 582,611 553,720 548,948
------- ------- -------
- Construction / Development 46,036 40,952 42,188
------ ------ ------
Commercial & Industrial
--------- --------- ---------
Business Purpose, Real
Estate secured 1,151,668 1,145,264 1,299,758
--------- --------- ---------
Business Purpose, not secured
by Real Estate 1,292,103 1,319,571 1,136,007
--------- --------- ---------
Residential Mortgage
(personal purpose)
Perm 1,023,444 1,037,953 1,043,557
--------- --------- ---------
Construction 17,583 19,073 17,600
------ ------ ------
Retail
Home Equity Loans 543,999 583,693 600,210
------- ------- -------
Home Equity Lines of Credit 239,794 212,468 177,514
------- ------- -------
Other 190,750 179,055 181,953
------- ------- -------
Total Loans $6,365,052 $6,315,874 $6,194,884
========== ========== ==========
AS OF AS OF
PERIOD END BALANCES: 6/30/2008 3/31/2008
(unaudited) (unaudited)
Earning Assets / Liabilities
Loan Breakdown: (Regulatory)
-----------------------------
Commercial/Industrial $1,117,794 $1,085,825
---------- ----------
Commercial Real Estate 1,735,011 1,609,201
--------- ---------
Residential Mortgage (including
multi-family) 1,525,791 1,594,672
--------- ---------
Real Estate Construction and Land
Development 549,346 537,310
------- -------
Home Equity (revolving and 2nd
lien) 765,108 762,717
------- -------
Consumer (Loans to Individuals) 221,772 224,594
------- -------
Other Loans 205,180 185,933
------- -------
Total Loans (net of unearned) 6,120,002 6,000,252
--------- ---------
Investment Securities 1,943,438 1,941,582
--------- ---------
Other Earning Assets 30,686 33,520
------ ------
Total Earning Assets (net of loan
loss reserve) $8,012,484 $7,893,723
========== ==========
Deposit Breakdown:
------------------
Savings $392,669 $377,416
-------- --------
NOW Accounts 863,879 932,132
------- -------
Money Market Accounts 1,716,021 1,679,063
--------- ---------
CDs $100m or less 1,539,392 1,722,316
--------- ---------
CDs greater than $100m 773,669 624,488
------- -------
Total Int. Bearing Deposits 5,285,630 5,335,415
--------- ---------
Short-Term Borrowings 823,245 678,581
------- -------
Long-Term Debt 1,173,678 1,161,403
--------- ---------
Total Int. Bearing Liabilities $7,282,553 $7,175,399
========== ==========
Loan Breakdown: (Internal)
--------------------------
Commercial Real Estate
Non Owner Occupied
- Permanent $734,907 $716,827
-------- --------
- Construction / Development 414,983 412,422
------- -------
Owner Occupied
- Permanent 572,659 557,279
------- -------
- Construction / Development 35,200 37,804
------ ------
Commercial & Industrial
--------- ---------
Business Purpose, Real Estate
secured 1,234,793 1,142,600
--------- ---------
Business Purpose, not secured by
Real Estate 1,117,794 1,085,825
--------- ---------
Residential Mortgage (personal
purpose)
Perm 1,035,874 1,023,358
--------- ---------
Construction 20,667 46,285
------ ------
Retail
Home Equity Loans 608,077 642,154
------- -------
Home Equity Lines of Credit 162,599 149,406
------- -------
Other 182,449 186,292
------- -------
Total Loans $6,120,002 $6,000,252
========== ==========
Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/09
BALANCE AND YIELD/COST ANALYSIS: AS OF AS OF
3/31/2009 12/31/2008
(unaudited) (unaudited)
Qtr Avg Bal Yield Qtr Avg Bal Yield
Total Loans (net of unearned) $6,366,859 5.47% $6,267,958 6.10%
---------- ---- ---------- ----
Investment Securities (incl.
trading assets) 1,946,768 5.39% 1,953,569 5.16%
--------- ---- --------- ----
Other Earning Assets 36,666 0.24% 26,811 0.83%
------ ---- ------ ----
Total Earning Assets 8,350,293 5.43% 8,248,338 5.86%
--------- ---- --------- ----
Total Earning Assets (net of
loan loss reserve) 8,261,145 5.49% 8,163,407 5.92%
--------- ---- --------- ----
Total Assets 9,461,229 4.79% 9,312,607 5.19%
--------- ---- --------- ----
Savings 370,302 0.35% 365,925 0.47%
------- ---- ------- ----
NOW Accounts 973,386 0.83% 973,959 1.18%
------- ---- ------- ----
Money Market Accounts 1,672,706 1.63% 1,592,120 2.14%
--------- ---- --------- ----
Certificates 2,722,419 3.37% 2,594,983 3.50%
--------- ---- --------- ----
Total Int. Bearing Deposits 5,738,813 2.24% 5,526,987 2.50%
--------- ---- --------- ----
Non-Interest Bearing Deposits 709,490 762,598
------- -------
Total Deposits 6,448,303 1.99% 6,289,585 2.20%
--------- ---- --------- ----
Other Real
Estate Owned &
Short-Term Repossessed
Borrowings Assets 670,436 2.19% 766,184 2.68%
------- ---- ------- ----
Long-Term Borrowings 1,072,044 4.56% 1,105,217 4.53%
--------- ---- --------- ----
Total Int. Bearing
Liabilities (incl. non-int
bearing deposits) 8,190,783 2.34% 8,160,986 2.56%
--------- ---- --------- ----
Total Int. Bearing Liabilities 7,481,293 2.57% 7,398,388 2.82%
--------- ---- --------- ----
Net Yield on Earning Assets
(net of loan loss reserve):
(Margin) 3.16% 3.36%
---- ----
Net Yield on Earning Assets:
(Margin) 3.13% 3.33%
---- ----
STATES OF OPERATION AND BANKING
OFFICES BY STATE (LATEST
AVAILABLE DATA)
State Number of Full Service Banking Offices
(Domestic and in the U.S. Territories)
PA
--
Total Number of Banking Offices 124 124
--- ---
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1 1
- -
Total Number of ATMs 138 138
--- ---
MD
--
Total Number of Banking Offices 1 1
- -
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 0 0
- -
Total Number of ATMs 1 1
- -
DE
--
Total Number of Banking Offices 2 2
- -
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1 1
- -
Total Number of ATMs 2 2
- -
TOTAL
-----
Total Number of Banking Offices 127 127
--- ---
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 2 2
- -
Total Number of ATMs 141 141
--- ---
EOP Employees (Full Time
Equivalent) 1,785 1,780
----- -----
Wealth Assets:
Assets under administration 7,851,843 7,912,771
Assets under management
(included above) 2,280,512 2,414,271
BALANCE AND YIELD/COST ANALYSIS:
AS OF AS OF
9/30/2008 6/30/2008
(unaudited) (unaudited)
Qtr Avg Bal Yield Qtr Avg Bal Yield
Total Loans (net of unearned) $6,159,589 6.33% $6,027,845 6.45%
---------- ---- ---------- ----
Investment Securities (incl.
trading assets) 2,000,340 5.61% 1,920,200 5.46%
--------- ---- --------- ----
Other Earning Assets 26,058 1.04% 26,752 5.58%
------ ---- ------ ----
Total Earning Assets 8,185,987 6.14% 7,974,797 6.21%
--------- ---- --------- ----
Total Earning Assets (net of
loan loss reserve) 8,102,336 6.20% 7,892,174 6.27%
--------- ---- --------- ----
Total Assets 9,258,341 5.43% 9,037,448 5.48%
--------- ---- --------- ----
Savings 385,964 0.53% 379,866 0.53%
------- ---- ------- ----
NOW Accounts 883,993 1.09% 898,257 1.19%
------- ---- ------- ----
Money Market Accounts 1,688,004 2.29% 1,649,955 2.27%
--------- ---- --------- ----
Certificates 2,449,391 3.75% 2,324,339 3.95%
--------- ---- --------- ----
Total Int. Bearing Deposits 5,407,352 2.63% 5,252,417 2.70%
--------- ---- --------- ----
Non-Interest Bearing Deposits 758,990 753,052
------- -------
Total Deposits 6,166,342 2.31% 6,005,469 2.36%
--------- ---- --------- ----
Other Real
Estate Owned &
Short-Term Repossessed
Borrowings Assets 774,760 2.67% 720,965 2.94%
------- ---- ------- ----
Long-Term Borrowings 1,165,047 4.37% 1,149,476 4.22%
--------- ---- --------- ----
Total Int. Bearing
Liabilities (incl. non-int
bearing deposits) 8,106,149 2.64% 7,875,910 2.69%
--------- ---- --------- ----
Total Int. Bearing Liabilities 7,347,159 2.91% 7,122,858 2.97%
--------- ---- --------- ----
Net Yield on Earning Assets
(net of loan loss reserve):
(Margin) 3.56% 3.59%
---- ----
Net Yield on Earning Assets:
(Margin) 3.52% 3.55%
---- ----
STATES OF OPERATION AND BANKING
OFFICES BY STATE (LATEST
AVAILABLE DATA)
State Number of Full Service Banking Offices
(Domestic and in the U.S. Territories)
PA
--
Total Number of Banking Offices 124 124
--- ---
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1 1
- -
Total Number of ATMs 142 145
--- ---
MD
--
Total Number of Banking Offices 1 1
- -
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 0 0
- -
Total Number of ATMs 1 1
- -
DE
--
Total Number of Banking Offices 2 2
- -
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1 1
- -
Total Number of ATMs 2 1
- -
TOTAL
-----
Total Number of Banking Offices 127 127
--- ---
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 2 2
- -
Total Number of ATMs 145 147
--- ---
EOP Employees (Full Time
Equivalent) 1,768 1,816
----- -----
Wealth Assets:
Assets under administration 8,315,474 8,521,540
Assets under management
(included above) 2,663,259 2,815,813
BALANCE AND YIELD/COST ANALYSIS:
AS OF
3/31/2008
(unaudited)
Qtr Avg Bal Yield
Total Loans (net of unearned) $5,296,371 6.80%
---------- ----
Investment Securities (incl.
trading assets) 1,802,951 5.63%
--------- ----
Other Earning Assets 24,148 2.22%
------ ----
Total Earning Assets 7,123,470 6.49%
--------- ----
Total Earning Assets (net of
loan loss reserve) 7,051,565 6.56%
--------- ----
Total Assets 7,886,342 5.86%
--------- ----
Savings 316,680 0.71%
------- ----
NOW Accounts 843,526 1.79%
------- ----
Money Market Accounts 1,416,426 2.78%
--------- ----
Certificates 2,097,691 4.32%
--------- ----
Total Int. Bearing Deposits 4,674,323 3.16%
--------- ----
Non-Interest Bearing Deposits 649,278
-------
Total Deposits 5,323,601 2.77%
--------- ----
Other Real
Estate Owned &
Repossessed
Short-Term Borrowings Assets 643,958 3.29%
------- ----
Long-Term Borrowings 1,049,870 4.61%
--------- ----
Total Int. Bearing
Liabilities (incl. non-int
bearing deposits) 7,017,429 3.09%
--------- ----
Total Int. Bearing Liabilities 6,368,151 3.41%
--------- ----
Net Yield on Earning Assets
(net of loan loss reserve):
(Margin) 3.48%
----
Net Yield on Earning Assets:
(Margin) 3.44%
----
STATES OF OPERATION AND BANKING
OFFICES BY STATE (LATEST
AVAILABLE DATA)
State Number of Full Service Banking Offices
(Domestic and in the U.S. Territories)
PA
--
Total Number of Banking Offices 132
---
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1
-
Total Number of ATMs 152
---
MD
--
Total Number of Banking Offices 1
-
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 0
-
Total Number of ATMs 1
-
DE
--
Total Number of Banking Offices 2
-
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1
-
Total Number of ATMs 1
-
TOTAL
-----
Total Number of Banking Offices 135
---
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 2
-
Total Number of ATMs 154
---
EOP Employees (Full Time
Equivalent) 1,906
-----
Wealth Assets:
Assets under administration 8,150,443
Assets under management
(included above) 2,931,374
SOURCE National Penn Bancshares, Inc.
Media, Catharine S. Bower, Corporate Communications, +1-610-369-6618,
catharine.bower@nationalpenn.com, or Investors, Michelle H. Debkowski,
Investor Relations, +1-610-369-6461, michelle.debkowski@nationalpenn.com
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