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UPDATE 1-National Penn Q4 profit beats on lower provisions
January 27, 2011 / 1:34 PM / 7 years ago

UPDATE 1-National Penn Q4 profit beats on lower provisions

* Q4 adj EPS $0.10 vs est. $0.07

* Q4 EPS $0.05 vs loss/shr $2.25 yr ago

* Q4 loan loss provision falls 62 pct

* Says capital, reserve levels to help TARP repayment

Jan 27 (Reuters) - National Penn Bancshares NPBC.O posted a better-than-expected quarterly profit as it set aside less money to cover loan and lease losses.

The company, which had received $150 million in bailout funds from the U.S. government, said its current capital and reserve levels should give it the ability to speed up repayment of Troubled Asset Relief Program (TARP) funds.

Fourth-quarter net income applicable to common share holders stood at $6.6 million, or 5 cents a share, compared with a loss of $283.3 million, or $2.25 a share, last year.

A goodwill impairment charge of $275 million had hurt the year-ago quarter.

Excluding items, National Penn, with a market value of $1.19 billion, posted earnings of 10 cents per share.

Analysts on average had expected the bank holding company to post earnings of 7 cents a share, according to Thomson Reuters I/B/E/S.

Provision for loan and lease losses fell 62 percent to $17.5 million. Shares of the Boyertown, Pennsylvania-based company closed at $8.66 on Wednesday on Nasdaq. They have gained a third in value since the company received a $150 million investment from private equity firm Warburg Pincus in October. (Reporting by Rachel Chitra in Bangalore; Editing by Unnikrishnan Nair)

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