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National Penn's management has decided to dispose of its collateralized debt obligation portfolio. This action has resulted in a charge to earnings in the amount of $84.7 million pre-tax, or $55.0 million after tax, in the third quarter, which is the largest contributing factor to National Penn's net loss for the quarter and year-to-date in 2009. Capital levels, as a result of this action, have been reduced by $18.0 million due to the previous fair value charges already reflected in capital. Upon the sale of a portion of these securities, National Penn expects to receive a cash refund of previously paid taxes, approximately $27.0 million.
Glenn E. Moyer, President and CEO, stated, "In addition to the difficult regional economic and operating environment, third quarter results were affected by a number of significant steps we believe will further reinforce National Penn's financial strength, but which negatively affected earnings in the short-run. National Penn's Board and executive management remain committed to taking proactive and decisive actions to address the challenges that National Penn, like others in our industry, continues to face. We believe our solid capital levels, the foundation of our financial strength, support these important strategies."
He continued, "With $627 million in tangible common equity, National Penn exceeds regulatory guidelines used to measure capital strength of financial institutions. Investor confidence in National Penn in the third quarter enabled us to raise $153 million in new common equity. Prior to that, we raised another $72 million in common equity through our dividend reinvestment program." Moyer also noted as a result of the capital raise, the company has received notification from the U.S. Treasury that during the fourth quarter its outstanding TARP-related warrants have been reduced by 50%, or 735,294 warrants.
National Penn's capital ratios at September 30, 2009 were as follows:
-- Tangible common equity to tangible assets -- 6.85%.
-- Total risk-based capital -- 13.72%, which is in excess of the regulatory
well-capitalized minimum of 10%.
-- Tier 1 risk-based capital --12.46%, which is in excess of the regulatory
well-capitalized minimum of 6%.
-- Tier 1 leverage ratio -- 9.00%, which is also in excess of the
regulatory well-capitalized minimum of 5%.
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 exceed the ratios required to be "well capitalized" under guidelines imposed by financial institution regulators.
National Penn's Board of Directors approved a fourth quarter cash dividend of one cent per share, payable on November 17, 2009 to shareholders of record on November 8, 2009. This compares to five cents per share paid in the third quarter 2009. In assessing the declaration and payment of a fourth quarter dividend, the Board determined that preservation of capital is a prudent response to the continuing adverse credit cycle and weak economy. Through this action, National Penn will retain approximately $20 million in common equity annually. The Board will continue to evaluate the cash dividend on a quarterly basis going forward, considering all of the relevant factors at that time.
National Penn continues to focus on asset quality in the current economic environment. The company increased its provision for loan losses for the third quarter to $52.0 million as compared to $37.5 million in the second quarter, resulting in an overall increase in the allowance for loan and lease losses to $125.5 million, which now represents 2.02% of loans, including loans held for sale, and 103.8% of non-performing assets. Non-performing assets and loans past due 90 days declined to $120.9 million at September 30, 2009, compared to $124.3 million at June 30, 2009, representing 1.24% of total assets.
Scott V. Fainor, Chief Operating Officer of National Penn, commented, "The action we announced today regarding our plan to dispose of our CDO portfolio and increasing our quarterly loan loss provision are among the proactive steps we have taken to reduce problem assets and mitigate credit risk. Our approach is consistent with industry trends, and with regulatory guidance and expectations. While our third quarter financial results reflect the immediate impact of these actions, we believe this approach will enable National Penn to continue to weather challenging economic conditions and actively participate in an economic recovery."
Core earnings of National Penn remain strong, as net interest margin increased during the third quarter 2009 to 3.31% from 3.19% in the second quarter 2009. Fee income categories are continuing to perform well, and expenses remain well controlled despite significantly increased charges for FDIC insurance. For the year-to-date in 2009, total loan outstandings are below year end 2008 by 1.8%. Originations of loans to new and existing customers so far in 2009 total $1.0 billion. However, growth in loan outstandings has been negated by faster repayments of loans from existing borrowers, sale of mortgage loans in the secondary market, refinancings and elevated levels of net loan charge-offs. Deposit growth for the first nine months of 2009 was $408.8 million, or an 8.5% annualized increase, which continues to reflect management's execution of its liability strategies and the confidence valued customers have in the overall strength of National Penn.
About National Penn Bancshares, Inc.:
National Penn Bancshares, Inc., with $9.7 billion in assets, is the fourth largest bank holding company based in Pennsylvania. In addition, wealth assets under administration or management amount to $8.5 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.; Vantage Investment Advisors, LLC; Institutional Advisors LLC; National Penn Leasing Company; 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 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,' "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 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, 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, including the Form 8-K filed with the SEC on September 8, 2009. 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"
Three Months Ended
FINANCIAL HIGHLIGHTS September 30,
Dollars in thousands, except per share data 2009 2008
------------------------------------------- ---- ----
STATEMENTS OF CONDITION
-----------------------
Total assets
Investment securities
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 $105,240 $120,717
Total interest expense 40,042 53,769
---------------------- ------ ------
Net interest income 65,198 66,948
Provision for loan and lease losses 52,000 6,876
----------------------------------- ------ -----
Net interest income after provision
for loan and lease losses 13,198 60,072
Other income (64,137) 16,850
Other expenses 52,152 54,087
-------------- ------ ------
Income before income taxes (103,091) 22,835
Income taxes (40,000) 3,607
------------ ------- -----
Net income ($63,091) $19,228
======== =======
Preferred dividends/accretion of
preferred discount (2,096) -
-------------------------------- ------ --
Net Income Available to Common
Shareholders ($65,187) $19,228
============================== ======== =======
------------------
PERFORMANCE RATIOS
------------------ ---- ----
Net yield on earning assets 3.31% 3.52%
Return on average assets -2.57% 0.83%
Return on average shareholders' equity -20.01% 7.29%
Return on average tangible equity (1) -37.82% 16.50%
---------
PER SHARE
--------- ------ -----
Basic earnings available to common
shareholders $(0.65) $0.24
Diluted earnings available to common
shareholders $(0.65) $0.23
Dividends paid in cash $0.0500 $0.1700
Average shares - basic 100,064,355 79,741,702
Average shares - diluted 100,064,355 80,495,907
(1) Reconciliation Tables for Non-GAAP Financial Measures
Return on average shareholders' equity -20.01% 7.29%
Effect of goodwill and intangibles -17.81% 9.21%
------ ----
Return on average tangible equity -37.82% 16.50%
====== =====
Average tangible equity excludes
acquisition related average goodwill
and intangibles:
Average shareholders' equity $1,250,619 $1,049,144
Average goodwill and intangibles (588,842) (585,544)
-------- --------
Average total tangible equity $661,777 $463,600
======== ========
Net Income available to common
shareholders ($65,187) $19,228
After tax other than temporary
impairment charge on CDO investment 55,058 13,000
After tax (gain) loss on investment
securities 561 (179)
After tax unrealized fair market
value gain (loss) on NPB Capital Trust
II Preferred Securities 4,062 (4,967)
After tax insurance proceeds (2,618) -
After tax FDIC special assessment - -
- -
Core net income $(8,124) $27,082
======= =======
Earnings per share $(0.65) $0.23
After tax other than temporary
impairment charge on CDO investment 0.55 0.16
After tax (gain) loss on investment
securities 0.01 -
After tax unrealized fair market value
gain (loss) on NPB Capital Trust II
Preferred Securities 0.04 (0.06)
After tax insurance proceeds (0.03) -
After tax FDIC special assessment - -
- -
Core earnings per share ($0.08) $0.33
====== =====
Nine Months Ended
FINANCIAL HIGHLIGHTS September 30,
Dollars in thousands, except per share data 2009 2008
------------------------------------------- ---- ----
STATEMENTS OF CONDITION
----------------------- ---------- ----------
Total assets $9,740,310 $9,316,795
Investment securities 2,248,237 1,979,577
Loans and leases 6,199,684 6,207,621
Deposits 6,798,662 6,220,643
Short-term borrowings 635,911 859,415
Long-term borrowings 914,982 1,114,020
Shareholders' equity 1,360,106 1,046,013
Book value per share 10.82 13.09
Common Book value per share 9.67 13.09
--------
EARNINGS
-------- -------- --------
Total interest income $316,835 $350,623
Total interest expense 132,131 160,983
---------------------- ------- -------
Net interest income 184,704 189,640
Provision for loan and lease losses 107,025 13,997
----------------------------------- ------- ------
Net interest income after provision
for loan and lease losses 77,679 175,643
Other income (27,407) 68,962
Other expenses 171,497 156,827
-------------- ------- -------
Income before income taxes (121,225) 87,778
Income taxes (54,386) 19,743
------------ ------- ------
Net income ($66,839) $68,035
======== =======
Preferred dividends/accretion of preferred
discount (6,245) 0
------------------------------------------ ------ --
Net Income Available to Common Shareholders ($73,084) $68,035
=========================================== ======== =======
------------------
PERFORMANCE RATIOS
------------------ ---- ----
Net yield on earning assets 3.21% 3.52%
Return on average assets -0.93% 1.04%
Return on average shareholders' equity -7.39% 9.34%
Return on average tangible equity (1) -14.45% 20.62%
---------
PER SHARE
--------- ------ -----
Basic earnings available to common shareholders $(0.81) $0.91
Diluted earnings available to common
shareholders $(0.81) $0.90
Dividends paid in cash $0.2700 $0.5100
Average shares - basic 89,760,302 74,833,736
Average shares - diluted 89,760,302 75,470,534
(1) Reconciliation Tables for Non-GAAP Financial Measures
Return on average shareholders' equity -7.39% 9.34%
Effect of goodwill and intangibles -7.06% 11.28%
----- -----
Return on average tangible equity -14.45% 20.62%
====== =====
Average tangible equity excludes
acquisition related average goodwill
and intangibles:
Average shareholders' equity $1,209,042 $973,495
Average goodwill and intangibles (590,736) (532,771)
-------- --------
Average total tangible equity $618,306 $440,724
======== ========
Net Income available to common
shareholders ($73,084) $68,035
After tax other than temporary
impairment charge on CDO investment 64,757 13,000
After tax (gain) loss on investment
securities 2,046 (429)
After tax unrealized fair market value
gain (loss) on NPB Capital Trust II
Preferred Securities 5,262 (3,569)
After tax insurance proceeds (2,618) -
After tax FDIC special assessment 3,006 -
----- --
Core net income $(631) $77,038
===== =======
Earnings per share $(0.81) $0.90
After tax other than temporary impairment
charge on CDO investment 0.72 0.17
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 0.06 (0.05)
After tax insurance proceeds (0.03) -
After tax FDIC special assessment 0.03 -
Core earnings per share ($0.01) $1.01
====== =====
Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/09
AS OF AS OF AS OF
BALANCE SHEET - ASSETS ($000s) 9/30/2009 6/30/2009 3/31/2009
(unaudited) (unaudited) (unaudited)
Cash & Cash Equivalents $400,191 $348,371 $389,024
-------- -------- --------
Held to Maturity Securities 612,214 653,184 299,645
------- ------- -------
Securities Available for Sale 1,636,023 1,504,155 1,614,393
--------- --------- ---------
Total Securities 2,248,237 2,157,339 1,914,038
--------- --------- ---------
Total Cash and Securities 2,648,428 2,505,710 2,303,062
--------- --------- ---------
Loans & Leases Held for Sale 9,279 23,326 17,806
----- ------ ------
Loans & Leases Held for Investment 6,190,405 6,283,523 6,347,246
--------- --------- ---------
Total Loans and Leases 6,199,684 6,306,849 6,365,052
--------- --------- ---------
Loan Loss Reserve (125,490) (98,313) (86,273)
-------- ------- -------
Premises and Equipment, net 113,712 114,635 116,885
------- ------- -------
Premises held for sale 812 812 812
--- --- ---
Bank Owned Life Insurance 197,132 196,001 194,883
------- ------- -------
Goodwill 555,789 555,964 556,031
------- ------- -------
Other Intangibles 32,854 33,654 35,557
------ ------ ------
Total Intangible Assets 588,643 589,618 591,588
------- ------- -------
Unconsolidated Investments Under
the Equity Method 11,718 13,279 12,966
------ ------ ------
ORE and Repossessed Assets 826 1,359 1,862
--- ----- -----
Other Assets 104,845 127,963 132,205
------- ------- -------
Total Assets $9,740,310 $9,757,913 $9,633,042
========== ========== ==========
BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits $6,080,203 $6,070,056 $5,929,420
---------- ---------- ----------
Noninterest-bearing Deposits $718,459 $741,598 $730,814
-------- -------- --------
Borrowings 1,414,817 1,525,578 1,584,684
--------- --------- ---------
Subordinated Debt (Trust
Preferred Securities) 136,076 129,827 129,877
------- ------- -------
Other Liabilities 30,649 74,231 82,145
------ ------ ------
Total Liabilities $8,380,204 $8,541,290 $8,456,940
========== ========== ==========
BALANCE SHEET - EQUITY ($000s)
Preferred Stock $144,738 $144,517 $144,297
-------- -------- --------
Common Stock 1,227,032 1,072,921 1,019,548
--------- --------- ---------
Retained (Deficit) Earnings (16,908) 52,143 65,765
------- ------ ------
Accumulated Other Comprehensive
loss $5,244 $(52,958) $(53,508)
------ -------- --------
Treasury Stock - - -
- - -
Total Shareholders Equity $1,360,106 $1,216,623 $1,176,102
========== ========== ==========
MEMO ITEMS
Held to Maturity Securities
(Fair Value) $635,398 $618,282 $271,423
-------- -------- --------
Common Book Value Per Share $9.67 $11.23 $12.43
----- ------ ------
Total Book Value Per Share $10.82 $12.74 $14.17
------ ------ ------
Tangible Common Book Value Per
Share $4.99 $5.05 $5.30
----- ----- -----
Tangible Total Book Value Per
Share $6.14 $6.57 $7.04
----- ----- -----
EOP Common Shares Outstanding
(excluding Treasury shares) 125,658,738 95,507,091 83,005,701
----------- ---------- ----------
Treasury Shares Held By Company - - -
- - -
Common Stock Dividends (total $
in period) $4,085 $4,199 $13,800
------ ------ -------
Dividends per Common Share $0.0500 $0.0500 $0.1700
------- ------- -------
Number of Shares to be
Repurchased in Plans - - -
- - -
Number of Shares Repurchased
During Period - - -
- - -
Average Price of Repurchased
Shares $- $- $-
-- -- --
AS OF AS OF
BALANCE SHEET - ASSETS ($000s) 12/31/2008 9/30/2008
(unaudited) (unaudited)
Cash & Cash Equivalents $195,830 $152,909
-------- --------
Held to Maturity Securities 326,090 391,725
------- -------
Securities Available for Sale 1,593,799 1,587,852
--------- ---------
Total Securities 1,919,889 1,979,577
--------- ---------
Total Cash and Securities 2,115,719 2,132,486
--------- ---------
Loans & Leases Held for Sale 3,605 5,317
----- -----
Loans & Leases Held for Investment 6,312,269 6,189,567
--------- ---------
Total Loans and Leases 6,315,874 6,194,884
--------- ---------
Loan Loss Reserve (84,006) (83,696)
------- -------
Premises and Equipment, net 119,924 119,705
------- -------
Premises held for sale 3,768 3,890
----- -----
Bank Owned Life Insurance 193,811 192,594
------- -------
Goodwill 558,252 546,270
------- -------
Other Intangibles 37,496 38,768
------ ------
Total Intangible Assets 595,748 585,038
------- -------
Unconsolidated Investments Under
the Equity Method 11,874 11,470
------ ------
ORE and Repossessed Assets 1,552 1,624
----- -----
Other Assets 129,167 158,800
------- -------
Total Assets $9,403,431 $9,316,795
========== ==========
BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits $5,596,617 $5,437,824
---------- ----------
Noninterest-bearing Deposits $793,269 $782,819
-------- --------
Borrowings 1,607,290 1,838,928
--------- ---------
Subordinated Debt (Trust
Preferred Securities) 127,980 134,507
------- -------
Other Liabilities 98,280 76,704
------ ------
Total Liabilities $8,223,436 $8,270,782
========== ==========
BALANCE SHEET - EQUITY ($000s)
Preferred Stock $144,076 $-
-------- --
Common Stock 1,003,110 980,894
--------- -------
Retained (Deficit) Earnings 65,194 115,291
------ -------
Accumulated Other Comprehensive
loss $(32,385) $(50,172)
-------- --------
Treasury Stock - -
- -
Total Shareholders Equity $1,179,995 $1,046,013
========== ==========
MEMO ITEMS
Held to Maturity Securities (Fair
Value) $284,608 $305,164
-------- --------
Common Book Value Per Share $12.83 $13.09
------ ------
Total Book Value Per Share $14.62 $-
------ --
Tangible Common Book Value Per
Share $5.45 $5.77
----- -----
Tangible Total Book Value Per
Share $7.24 $-
----- --
EOP Common Shares Outstanding
(excluding Treasury shares) 80,731,751 79,886,282
---------- ----------
Treasury Shares Held By Company - -
- -
Common Stock Dividends (total $
in period) $13,805 $13,541
------- -------
Dividends per Common Share $0.1725 $0.1700
------- -------
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 9/30/09
INCOME STATEMENT ($000s)
FOR QUARTER FOR QUARTER FOR QUARTER FOR QUARTER
ENDED ENDED ENDED ENDED
9/30/2009 6/30/2009 3/31/2009 12/31/2008
(unaudited) (unaudited) (unaudited) (unaudited)
Interest Income $105,240 $105,644 $105,951 $115,613
-------- -------- -------- --------
Interest Expense 40,042 44,768 47,321 52,515
------ ------ ------ ------
Net Interest Income 65,198 60,876 58,630 63,098
------ ------ ------ ------
Provision for Loan and
Lease Losses 52,000 37,500 17,525 18,500
------ ------ ------ ------
Net Interest Income after
Provision for Loan
and Lease Losses 13,198 23,376 41,105 44,598
------ ------ ------ ------
Wealth Management Income 7,670 7,232 6,615 7,543
----- ----- ----- -----
Service Charges on
Deposits 6,247 6,071 5,800 6,685
----- ----- ----- -----
Cash Management and
Electronic Banking Fees 4,041 3,995 3,648 3,826
----- ----- ----- -----
Mortgage Banking Income 1,884 2,834 2,420 856
----- ----- ----- ---
Insurance Commissions
and Fees 3,771 4,016 3,957 3,691
----- ----- ----- -----
Bank Owned Life Insurance
Income 1,131 1,275 1,072 1,217
----- ----- ----- -----
Equity in Unconsolidated
Investments (525) 314 1,091 1,550
---- --- ----- -----
Net gains (losses) from
Fair Value changes (6,249) 51 (1,898) 6,527
------ -- ------ -----
Net gains (losses)on
Investment Securities (863) - (2,284) 12
---- - ------ --
Total Impairment Losses
on Investment
Securities (84,704) (14,347) (26,595) n/a
------- ------- ------- -------
Non credit-related
impairment on securities
not expected to be sold - 7,211 18,810 n/a
- ----- ------ -------
Net Impairment losses on
investment securities (84,704) (7,136) (7,785) (79,496)
------- ------ ------ -------
Other Non-Interest
Income 3,460 2,863 2,579 1,385
----- ----- ----- -----
Total Non-Interest Income
(Loss) (64,137) 21,515 15,215 (46,204)
------- ------ ------ -------
Salaries, Wages and
Employee Benefits 30,505 32,249 32,017 30,807
------ ------ ------ ------
Net Premises and
Equipment Expense 8,104 7,335 8,598 7,108
----- ----- ----- -----
Amortization of
Intangibles 1,899 1,903 1,940 1,996
----- ----- ----- -----
Other Non-Interest
Expense 15,672 16,540 14,138 15,293
------ ------ ------ ------
FDIC Insurance special
assessment - 4,625 - -
- ----- - -
Fraud Expense
(Recovery) (4,028) - - 4,500
------ - - -----
Total Non-Interest
Expense 52,152 62,652 56,693 59,704
------ ------ ------ ------
Net Income (Loss)
Before Taxes (103,091) (17,761) (373) (61,310)
-------- ------- ---- -------
Income Tax (Benefit)
Expense (40,000) (10,213) (4,173) (25,546)
------- ------- ------ -------
Net Income (Loss) (63,091) (7,548) 3,800 (35,764)
------- ------ ----- -------
Preferred dividends/
accretion of preferred
discount (2,096) (2,095) (2,054) (417)
------ ------ ------ ----
Net Income (Loss)
available to Common
Shareholders $(65,187) $(9,643) $1,746 $(36,181)
======== ======= ====== ========
------- ------- ------- -------
Net Interest Income
(FTE) $70,827 $66,573 $64,426 $68,952
------- ------- ------- -------
EARNINGS PER SHARE:
Basic earnings (loss) $(0.63) $(0.09) $0.05 $(0.45)
------ ------ ----- ------
Basic earnings (loss)
available to common
shareholders $(0.65) $(0.11) $0.02 $(0.45)
------ ------ ----- ------
Diluted earnings (loss) $(0.63) $(0.09) $0.05 $(0.45)
------ ------ ----- ------
Diluted earnings (loss)
available to common
shareholders $(0.65) $(0.11) $0.02 $(0.45)
------ ------ ----- ------
Average Shares
Basic 100,064,355 87,415,723 81,497,806 79,341,618
----------- ---------- ---------- ----------
Average Shares
Diluted 100,064,355 87,415,723 81,891,272 79,341,618
----------- ---------- ---------- ----------
SUPPLEMENTAL DATA ($000s)
Return on Avg.
Assets (annualized) -2.57% -0.31% 0.16% -1.53%
----- ----- ---- -----
Return on Avg.Total
Equity (annualized) -20.01% -2.52% 1.31% -13.20%
------ ----- ---- ------
Return on Avg. Common
Equity (annualized) -22.63% -2.87% 1.49% -13.61%
------ ----- ---- ------
Return on Avg. Total
Tangible Equity
(annualized) -37.82% -4.97% 2.64% -28.83%
------ ----- ---- ------
Return on Avg. Common
Tangible Equity
(annualized) -48.40% -6.52% 3.51% -30.86%
------ ----- ---- ------
Reconciliation Table for Non-GAAP Financial Measures
Return on average
total shareholders'
equity -20.01% -2.52% 1.31% -13.20%
Effect of goodwill
and intangibles -17.81% -2.45% 1.33% -15.62%
------ ----- ---- ------
Return on average
total tangible
equity -37.82% -4.97% 2.64% -28.83%
Average total tangible
equity excludes
acquisition related
average goodwill and
intangibles:
Average total
shareholders'
equity $1,250,619 $1,199,198 $1,176,494 $1,077,773
Average goodwill
and intangibles (588,842) (590,593) (592,816) (584,221)
-------- -------- -------- --------
Average total
tangible equity $661,777 $608,605 $583,678 $493,552
-------- -------- -------- --------
Return on average
common shareholders'
equity -22.63% -2.87% 1.49% -13.61%
Effect of goodwill
and intangibles -25.77% -3.65% 2.02% -17.25%
------ ----- ---- ------
Return on average
common tangible
equity -48.40% -6.52% 3.51% -30.86%
Average common
tangible equity
excludes acquisition
related average
goodwill and
intangibles:
Average common
shareholders'
equity $1,105,988 $1,054,790 $1,031,883 $1,045,212
Average goodwill
and intangibles (588,842) (590,593) (592,816) (584,221)
-------- -------- -------- --------
Average common
tangible equity $517,146 $464,197 $439,067 $460,991
-------- -------- -------- --------
FOR QUARTER YEAR YEAR
ENDED TO DATE TO DATE
INCOME STATEMENT ($000s) 9/30/2008 9/30/2009 9/30/2008
(unaudited) (unaudited) (unaudited)
Interest Income $120,717 $316,835 $350,623
-------- -------- --------
Interest Expense 53,769 132,131 160,983
------ ------- -------
Net Interest Income 66,948 184,704 189,640
------ ------- -------
Provision for Loan and Lease Losses 6,876 107,025 13,997
----- ------- ------
Net Interest Income after Provision
for Loan and Lease Losses 60,072 77,679 175,643
------ ------ -------
Wealth Management Income 8,239 21,517 24,362
----- ------ ------
Service Charges on Deposits 6,880 18,118 18,465
----- ------ ------
Cash Management and Electronic Banking
Fees 3,917 11,684 10,560
----- ------ ------
Mortgage Banking Income 882 7,138 2,451
--- ----- -----
Insurance Commissions and Fees 3,913 11,744 11,687
----- ------ ------
Bank Owned Life Insurance Income 1,702 3,478 5,124
----- ----- -----
Equity in Unconsolidated Investments 1,574 880 2,996
----- --- -----
Net gains (losses) from Fair Value
changes 7,641 (8,096) 5,490
----- ------ -----
Net gains (losses)on Investment
Securities 276 (3,147) 660
--- ------ ---
Total Impairment Losses on Investment
Securities n/a (125,646) n/a
------- -------- -------
Non credit-related impairment on
securities not expected to be sold n/a 26,021 n/a
------- ------ -------
Net Impairment losses on investment
securities (20,000) (99,625) (20,000)
------- ------- -------
Other Non-Interest Income 1,826 8,902 7,167
----- ----- -----
Total Non-Interest Income (Loss) 16,850 (27,407) 68,962
------ ------- ------
Salaries, Wages and Employee Benefits 31,998 94,771 92,525
------ ------ ------
Net Premises and Equipment Expense 8,416 24,037 25,442
----- ------ ------
Amortization of Intangibles 1,981 5,742 5,527
----- ----- -----
Other Non-Interest Expense 11,692 46,350 33,333
------ ------ ------
FDIC Insurance special assessment - 4,625 -
- ----- -
Fraud Expense (Recovery) - (4,028) -
- ------ -
Total Non-Interest Expense 54,087 171,497 156,827
------ ------- -------
Net Income (Loss) Before Taxes 22,835 (121,225) 87,778
------ -------- ------
Income Tax (Benefit) Expense 3,607 (54,386) 19,743
----- ------- ------
Net Income (Loss) 19,228 (66,839) 68,035
------ ------- ------
Preferred dividends/accretion of
preferred discount - (6,245) -
- ------ -
Net Income (Loss) available to Common
Shareholders $19,228 $(73,084) $68,035
======= ======== =======
------- -------- --------
Net Interest Income (FTE) $72,532 $201,826 $204,707
------- -------- --------
EARNINGS PER SHARE:
Basic earnings (loss) $0.24 $(0.74) $0.91
----- ------ -----
Basic earnings (loss) available to
common shareholders $0.24 $(0.81) $0.91
----- ------ -----
Diluted earnings (loss) $0.23 $(0.74) $0.90
----- ------ -----
Diluted earnings (loss) available to
common shareholders $0.23 $(0.81) $0.90
----- ------ -----
Average Shares Basic 79,741,702 89,760,302 74,833,736
---------- ---------- ----------
Average Shares Diluted 80,495,907 89,760,302 75,470,534
---------- ---------- ----------
SUPPLEMENTAL DATA ($000s)
Return on Avg. Assets (annualized) 0.83% -0.93% 1.04%
---- ----- ----
Return on Avg.Total Equity
(annualized) 7.29% -7.39% 9.34%
---- ----- ----
Return on Avg. Common Equity
(annualized) 7.29% -8.40% 9.34%
---- ----- ----
Return on Avg. Total Tangible
Equity (annualized) 16.50% -14.45% 20.62%
----- ------ -----
Return on Avg. Common Tangible Equity
(annualized) 16.50% -18.86% 20.62%
----- ------ -----
Reconciliation Table for
Non-GAAP Financial Measures
Return on average total
shareholders' equity 7.29% -7.39% 9.34%
Effect of goodwill and
intangibles 9.21% -7.06% 11.28%
---- ----- -----
Return on average total tangible
equity 16.50% -14.45% 20.62%
Average total tangible
equity excludes acquisition
related average goodwill and
intangibles:
Average total shareholders'
equity $1,049,144 $1,209,042 $973,495
Average goodwill and
intangibles (585,544) (590,736) (532,771)
-------- -------- --------
Average total tangible equity $463,600 $618,306 $440,724
-------- -------- --------
Return on average common
shareholders' equity - -8.40% -
Effect of goodwill and
intangibles - -10.46% -
- ------ -
Return on average common tangible
equity - -18.86% -
Average common tangible equity
excludes acquisition related average
goodwill and intangibles:
Average common shareholders'
equity - $1,064,492 -
Average goodwill and
intangibles - (590,736) -
- -------- -
Average common tangible equity - $473,756 -
- -------- -
Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/09
CHARGEOFFS ($000s)
FOR QUARTER FOR QUARTER FOR QUARTER FOR QUARTER
ENDED ENDED ENDED ENDED
9/30/2009 6/30/2009 3/31/2009 12/31/2008
(unaudited) (unaudited) (unaudited) (unaudited)
Loan Chargeoffs $29,202 $27,759 $16,044 $18,946
------- ------- ------- -------
Recoveries on
Loans (4,379) (2,299) (786) (756)
------ ------ ---- ----
Net Loan
Chargeoffs $24,823 $25,460 $15,258 $18,190
------- ------- ------- -------
Net Loan
Chargeoffs to
Average Loans
(non-
annualized) 0.40% 0.40% 0.24% 0.29%
---- ---- ---- ----
NET CHARGE OFF ASSETS-DETAIL
Commercial,
Financial and
Agricultural $(11,819) $(14,791) $(6,597) $(10,901)
Real Estate-
Permanent (2,485) (3,029) 6 (378)
Real Estate-
Construction (7,835) (5,038) (1,234) (4,103)
Leases 19 (274) (88) -
Residential
Mortgages (860) (978) (565) (1,534)
Consumer (1,688) (1,235) (6,633) (1,048)
Overdraft (155) (115) (147) (226)
---- ---- ---- ----
Net Loans
Charged-off $(24,823) $(25,460) $(15,258) $(18,190)
======== ======== ======== ========
CHARGEOFFS ($000s)
FOR QUARTER YEAR YEAR
ENDED TO DATE TO DATE
9/30/2008 9/30/2009 9/30/2008
(unaudited) (unaudited) (unaudited)
Loan Chargeoffs $7,097 $73,005 $14,606
------ ------- -------
Recoveries on
Loans (2,276) (7,464) (3,524)
------ ------ ------
Net Loan
Chargeoffs $4,821 $65,541 $11,082
------ ------- -------
Net Loan
Chargeoffs to
Average Loans
(non-
annualized) 0.08% 1.03% 0.19%
---- ---- ----
ASSET QUALITY AND OTHER DATA ($000s)
AS OF AS OF AS OF AS OF AS OF
9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008
(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
Nonaccrual Loans $116,418 $119,615 $59,871 $31,972 $25,562
-------- -------- ------- ------- -------
Renegotiated Loans 589 603 614 623 628
--- --- --- --- ---
Other Real Estate
Owned &
Repossessed
Assets 826 1,359 1,862 1,552 1,623
--- ----- ----- ----- -----
Total Non-
performing
Assets $117,833 $121,577 $62,347 $34,147 $27,813
-------- -------- ------- ------- -------
Loans 90+ Days
Past Due & Still
Accruing 3,113 2,763 2,659 2,991 2,551
----- ----- ----- ----- For full details on National Penn Bancshares Inc (NPBC) click here. National Penn Bancshares Inc (NPBC) has Short Term PowerRatings of 4. Details on National Penn Bancshares Inc (NPBC) Short Term PowerRatings is available at This Link.
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