National Penn Bancshares, Inc. Reports First Quarter 2012 Results

National Penn Bancshares, Inc. (Nasdaq: NPBC) reported net income available to common shareholders of $25.3 million, or $0.17 per diluted common share, for the first quarter of 2012 compared to $20.7 million, or $0.14 per diluted common share, for the fourth quarter of 2011. Net income available to common shareholders increased 62% from $15.6 million, or $0.10 per diluted common share, for the first quarter of 2011. On an adjusted basis 1, net income for the quarter totaled $24.2 million, or $0.16 per diluted common share, consistent with the fourth quarter of 2011 and a 45% increase over the prior year period. First quarter 2012 adjusted net income¹ excluded an after-tax unrealized fair value gain on National Penn’s trust preferred securities (Nasdaq: NPBCO) of $1.1 million.

“National Penn reported another quarter of consistent earnings resulting in a strong return on assets of 1.16% 1,” said Scott V. Fainor, president and CEO of National Penn. “The strength of the balance sheet, as reflected by our asset quality metrics and capital levels, allowed for our fourth consecutive quarterly dividend increase and the previously announced share repurchase authorization. We believe these results and the continued execution of our strategic initiatives position us well for future opportunities.”

The net interest margin for the first quarter of 2012 increased 6 basis points to 3.55% from 3.49% in the prior quarter, while net interest income remained stable and totaled $63.8 million. Total loans and leases increased $13.6 million from December 31, 2011 with growth attributable to a focus on commercial lending which increased by $40.5 million, or 4.7% on an annualized basis. Total consumer loans, including residential mortgage loans, declined $26.9 million during the first quarter of 2012, primarily due to prepayments and the sale of a majority of new mortgage originations in the secondary market. The first quarter net interest margin benefitted from a reduction of higher-cost deposits, and as a result the cost of deposits decreased five basis points during the quarter to 0.51%. Deposit mix also continued to improve as transaction and savings accounts increased $297 million from March 31, 2011 and comprised 74% of total deposits compared to 69%. Additionally, the full-quarter effect of the previously announced actions taken late in the fourth quarter of 2011 to terminate certain higher-costing structured repurchase agreements contributed to the improvement in the net interest margin.

Asset quality continued to improve, as evidenced by classified loans declining $23.4 million, or 6.3%, as compared to December 31, 2011 and 21% from the prior year. The reduction in classified loans and stable net charge-offs and non-performing loans resulted in a provision for loan and lease losses of $2.0 million for the first quarter of 2012, consistent with the $2.0 million provision for the fourth quarter of 2011, and a decrease of $8.0 million from the prior year first quarter. The allowance to non-performing loans remained strong at 183% at March 31, 2012.

Capital levels were further strengthened during the first quarter of 2012, resulting in a tangible common equity to tangible assets ratio of 11.25% 1 and a total risk-based capital ratio of 18.72%. Based upon strong and improving capital levels, National Penn’s Board of Directors increased the cash dividend to $0.07 per share for the second quarter from $0.05 per share, payable on May 17, 2012 to shareholders of record on May 5, 2012. Additionally, a common stock repurchase program was announced on April 2, 2012, allowing for up to 7.5 million common shares to be repurchased, as market conditions permit, throughout the year.

Scott V. Fainor stated, “Maintaining our net interest margin and growing loans in a difficult interest rate and economic environment are terrific accomplishments for the National Penn team. Our entire team remains focused on enhancing long-term shareholder value.”

About National Penn Bancshares, Inc.:

National Penn Bancshares, Inc., with approximately $8.5 billion in assets, is a bank holding company based in Pennsylvania. Headquartered in Boyertown, National Penn operates 121 branch offices comprising 120 branches in Pennsylvania and one branch in Maryland through National Penn Bank and its KNBT and Nittany Bank divisions.

National Penn’s financial services affiliates are 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.

1 Statement Regarding Non-GAAP Financial Measures:

This release, including the attached Financial Highlights and financial data tables, 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. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the following non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of National Penn.
  • Tangible common equity excludes goodwill and intangible assets and preferred equity. Banking and financial institution regulators also exclude goodwill and intangible assets from shareholders’ equity when assessing the capital adequacy of a financial institution. Tangible common equity provides a method to assess the company’s tangible capital trends.
  • Tangible book value expresses tangible common equity on a per-share basis. Tangible book value provides a method to assess the level of tangible net assets on a per-share basis.
  • Adjusted net income and return on assets exclude the effects of certain gains and losses, adjusted for taxes when applicable. Adjusted net income and returns provide methods to assess earnings performance by excluding items that management believes are not comparable among the periods presented.
  • Efficiency ratio expresses operating expenses as a percentage of fully-taxable equivalent net interest income plus non-interest income. Operating expenses exclude items from non-interest expense that management believes are not comparable among the periods presented. Non-interest income is adjusted to also exclude items that management believes are not comparable among the periods presented. Efficiency ratio is used as a method for management to assess its operating expense level and to compare to financial institutions of varying sizes.

Management believes the use of non-GAAP measures will help readers compare National Penn’s current results to those of prior periods as presented in the accompanying Financial Highlights and financial data tables.

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: regulatory requirements or other actions mandated by National Penn’s regulators, recent and ongoing changes to the state and federal regulatory schemes under which National Penn and other financial services companies operate (including the Dodd-Frank Act and regulations adopted or to be adopted to implement that Act), deterioration in the credit quality of loans, the effect of credit risk exposure, the geographic concentration of National Penn’s operations, declines in the value of National Penn’s assets and the effect of any resulting impairment charges, National Penn’s ability to raise capital and maintain capital levels; increases in operating costs (including those mandated by National Penn’s regulators), competition for personnel and from other financial institutions, variations in interest rates, interruptions or breaches of National Penn’s security systems, the development and maintenance of National Penn’s information technology, the ability of National Penn and its subsidiaries to pay dividends, and the nature and frequency of litigation and other similar proceedings to which National Penn may be a party . 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, 2011, 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.
   
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2012
 
 
 
Unaudited, dollars in thousands except share and per share data
As of
  3/31/2012       12/31/2011       3/31/2011  
SUMMARY BALANCE SHEET            
Total assets $ 8,524,035 $ 8,486,281 $ 8,543,267
Investment securities and other securities 2,335,421 2,314,111 2,235,777
Total loans and leases 5,201,656 5,188,101 5,245,146
Deposits 5,888,383 5,874,819 5,933,016
Borrowings 1,387,235 1,370,399 1,472,987
Shareholders' equity 1,200,830 1,180,687 1,097,609
Tangible book value per common share (2) $ 6.09 $ 5.97 $ 5.40
Tangible common equity / tangible assets (2) 11.25 % 11.04 % 9.91 %
 
Three Months Ended
  3/31/2012       12/31/2011       3/31/2011  
EARNINGS            
Total interest income $ 81,414 $ 83,681 $ 89,358
Total interest expense   17,596       19,160       23,388  
Net interest income 63,818 64,521 65,970
Provision for loan and lease losses   2,000       2,000       10,000  
Net interest income after provision for loan and lease losses 61,818 62,521 55,970
Net gains (losses) from fair value changes on subordinated debentures 1,645 (1,543 ) (51 )
Loss on debt extinguishment - (1,635 ) -
Net gains on sales of investment securities - 1,697 -
Other non-interest income 22,596 22,978 24,235
Corporate reorganization expense - 2,200 -
Other non-interest expense   52,440       55,186       56,837  
Income before income taxes 33,619 26,632 23,317
Income tax expense   8,317       5,889       4,537  
Net income   25,302       20,743       18,780  
Preferred dividends and accretion of preferred discount - - (1,691 )
Accelerated accretion from redemption of preferred stock   -       -       (1,452 )
Net income available to common shareholders $ 25,302     $ 20,743     $ 15,637  
 
PERFORMANCE RATIOS            
Net interest margin 3.55 % 3.49 % 3.58 %
Return on average assets 1.21 % 0.97 % 0.88 %
Adjusted return on average assets (3) 1.16 % 1.08 % 0.80 %
Return on average total shareholders' equity 8.56 % 7.02 % 6.39 %
Return on average tangible common equity (1) 11.12 % 9.17 % 8.03 %
Efficiency ratio (4) 57.47 % 59.73 % 59.61 %
 
PER SHARE            
Basic earnings available to common shareholders $ 0.17 $ 0.14 $ 0.10
Diluted earnings available to common shareholders 0.17 0.14 0.10
Dividends per common share 0.05 0.04 0.01
Average shares - basic 152,099,546 151,773,327 150,461,063
Average shares - diluted 152,392,315 152,068,706 150,765,883
             
 
(1) RECONCILIATION TABLES FOR NON-GAAP FINANCIAL MEASURES Three Months Ended
  3/31/2012       12/31/2011       3/31/2011  
Return on average tangible common equity
Return on average shareholders' equity 8.56 % 7.02 % 6.39 %
Effect of preferred equity - - -0.46 %
Effect of goodwill and intangibles   2.56 %   2.15 %   2.10 %
Return on average tangible common equity   11.12 %   9.17 %   8.03 %
Average tangible equity:
Average shareholders' equity $ 1,188,384 $ 1,172,273 $ 1,191,080
Average preferred equity - - (122,095 )
Average goodwill and intangibles   (273,360 )   (274,827 )   (279,627 )
Average total tangible common equity $ 915,024   $ 897,446   $ 789,358  
 
Adjusted net income reconciliation
Net income available to common shareholders $ 25,302 $ 20,743 $ 15,637
After tax unrealized fair market value (gain) loss on subordinated debentures (1,069 ) 1,003 -
Corporate reorganization expense - 1,430 -
Accelerated accretion from redemption of preferred stock   -     -     1,452  
Adjusted net income available to common shareholders $ 24,233   $ 23,176   $ 17,089  
 
Earnings per share
Net income available to common shareholders $ 0.17 $ 0.14 $ 0.10
After tax unrealized fair market value (gain) loss on subordinated debentures (0.01 ) 0.01 -
Corporate reorganization expense - 0.01 -
Accelerated accretion from redemption of preferred stock   -     -     0.01  
Adjusted net income available to common shareholders $ 0.16   $ 0.16   $ 0.11  
     
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2012
   
 
 
Unaudited, dollars in thousands except share and per share data As of
  3/31/2012       12/31/2011       9/30/2011       6/30/2011       3/31/2011  
BALANCE SHEET - ASSETS
Cash and due from banks $ 108,752 $ 129,637 $ 116,057 $ 105,918 $ 113,031
Interest-earning deposits with banks   344,427     321,885     422,942     513,132     392,337  
Total cash and cash equivalents 453,179 451,522 538,999 619,050 505,368
 
Investment securities available-for-sale, at fair value 1,779,613 1,747,019 1,790,654 1,696,682 1,622,395
Investment securities held-to-maturity 487,507 496,574 509,773 518,578 535,488
Other securities 68,301 70,518 72,851 75,308 77,894
Loans held-for-sale 16,909 12,216 17,144 8,852 5,561
 
Loans and leases 5,184,747 5,175,885 5,144,131 5,170,074 5,239,585
Allowance for loan and lease losses   (121,452 )   (126,640 )   (131,073 )   (137,909 )   (142,960 )
Loans and leases, net 5,063,295 5,049,245 5,013,058 5,032,165 5,096,625
 
Premises and equipment, net 95,937 96,198 100,880 103,017 103,771
Accrued interest receivable 31,241 30,991 33,110 31,862 34,264
Bank owned life insurance 139,507 138,274 137,017 136,606 135,373
Other real estate owned and other repossessed assets 7,647 7,716 8,029 8,407 7,653
Goodwill 258,279 258,279 258,279 258,279 258,279
Other intangible assets, net 14,408 15,770 17,370 18,970 20,530
Unconsolidated investments under the equity method 11,699 12,173 11,927 12,327 12,211
Other assets   96,513     99,786     102,550     113,038     127,855  
TOTAL ASSETS $ 8,524,035   $ 8,486,281   $ 8,611,641   $ 8,633,141   $ 8,543,267  
 
BALANCE SHEET - LIABILITIES
Non-interest bearing deposits $ 884,025 $ 863,703 $ 833,311 $ 839,811 $ 834,321
Interest bearing deposits   5,004,358     5,011,116     5,159,680     5,104,350     5,098,695  
Total deposits 5,888,383 5,874,819 5,992,991 5,944,161 5,933,016
 
Customer repurchase agreements 542,706 523,978 500,099 573,628 531,256
Structured repurchase agreements 85,000 85,000 140,000 165,000 165,000
Short-term borrowings - - 6,400 6,390 6,184
Federal Home Loan Bank advances 615,863 616,111 619,946 627,332 627,716
Subordinated debentures 143,666 145,310 143,767 143,261 142,831
Accrued interest payable and other liabilities   47,587     60,376     44,234     39,856     39,655  
TOTAL LIABILITIES   7,323,205     7,305,594     7,447,437     7,499,628     7,445,658  
 
BALANCE SHEET - SHAREHOLDERS' EQUITY
Common stock 1,384,657 1,383,082 1,380,728 1,379,690 1,379,014
Retained deficit (205,497 ) (223,189 ) (237,862 ) (258,125 ) (279,817 )
Accumulated other comprehensive income (loss)   21,670     20,794     21,338     11,948     (1,588 )
TOTAL SHAREHOLDERS' EQUITY   1,200,830     1,180,687     1,164,204     1,133,513     1,097,609  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,524,035   $ 8,486,281   $ 8,611,641   $ 8,633,141   $ 8,543,267  
 
 
COMMON SHARE AND PER SHARE DATA
Book value $ 7.88 $ 7.77 $ 7.67 $ 7.47 $ 7.24
Tangible book value (2) $ 6.09 $ 5.97 $ 5.86 $ 5.65 $ 5.40
Dividends $ 0.05 $ 0.04 $ 0.03 $ 0.01 $ 0.01
Shares outstanding (end of period, net of treasury) 152,295,895 151,883,036 151,714,696 151,660,444 151,506,511
                     
 
(2) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES
Total shareholders' equity $ 1,200,830 $ 1,180,687 $ 1,164,204 $ 1,133,513 $ 1,097,609
Goodwill and intangibles   (272,687 )   (274,049 )   (275,649 )   (277,249 )   (278,809 )
Tangible common equity $ 928,143   $ 906,638   $ 888,555   $ 856,264   $ 818,800  
Common shares outstanding 152,295,895 151,883,036 151,714,696 151,660,444 151,506,511
Tangible book value per share $ 6.09 $ 5.97 $ 5.86 $ 5.65 $ 5.40
 
Total assets $ 8,524,035 $ 8,486,281 $ 8,611,641 $ 8,633,141 $ 8,543,267
Goodwill and intangibles   (272,687 )   (274,049 )   (275,649 )   (277,249 )   (278,809 )
Tangible assets $ 8,251,348   $ 8,212,232   $ 8,335,992   $ 8,355,892   $ 8,264,458  
Tangible common equity/tangible assets 11.25 % 11.04 % 10.66 % 10.25 % 9.91 %
 
(3) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES
Adjusted net income available to common shareholders (1) $ 24,233 $ 23,176 $ 24,813 $ 23,208 $ 17,089
Average assets $ 8,397,381 $ 8,525,271 $ 8,588,269 $ 8,599,923 $ 8,701,649
Adjusted return on average assets (annualized) 1.16 % 1.08 % 1.15 % 1.08 % 0.80 %
 
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2012
         
 
 
Unaudited, dollars in thousands except share and per share data For the Quarter Ended
  3/31/2012       12/31/2011       9/30/2011       6/30/2011       3/31/2011  
INTEREST INCOME
Loans and leases, including fees $ 62,291 $ 64,040 $ 65,795 $ 67,553 $ 69,228
Investment securities
Taxable 11,209 11,310 11,591 11,552 11,357
Tax-exempt 7,781 8,076 8,337 8,401 8,493
Deposits with banks   133     255     332     234     280  
Total interest income   81,414     83,681     86,055     87,740     89,358  
INTEREST EXPENSE
Deposits 7,294 8,272 9,881 10,974 11,407
Customer repurchase agreements 550 556 593 645 712
Structured repurchase agreements 915 1,316 1,697 1,701 1,683
Short-term borrowings - - - - -
Federal Home Loan Bank advances 6,967 6,987 7,073 7,039 7,217
Subordinated debentures   1,870     2,029     2,394     2,386     2,369  
Total interest expense   17,596     19,160     21,638     22,745     23,388  
Net interest income 63,818 64,521 64,417 64,995 65,970
Provision for loan and lease losses   2,000     2,000     -     3,000     10,000  
Net interest income after provision for loan and lease losses   61,818     62,521     64,417     61,995     55,970  
NON-INTEREST INCOME
Wealth management income 6,161 5,616 6,227 5,856 5,924
Service charges on deposit accounts 3,823 4,608 4,880 4,616 4,664
Insurance commissions and fees 3,296 3,107 3,406 3,520 3,221
Cash management and electronic banking fees 4,420 4,613 4,590 4,645 4,371
Mortgage banking income 1,335 1,481 1,349 1,014 1,080
Bank owned life insurance income 1,209 1,288 1,733 1,233 1,220
(Losses) earnings of unconsolidated investments (74 ) 246 99 116 1,700
Other operating income 2,426 2,019 2,339 1,818 2,055
Loss on sale of building - - (1,000 ) - -
Net gains (losses) from fair value changes on subordinated debentures 1,645 (1,543 ) (506 ) (430 ) (51 )
Loss on debt extinguishment - (1,635 ) (998 ) - -
Net gains on sales of investment securities   -     1,697     1,022     -     -  
Total non-interest income   24,241     21,497     23,141     22,388     24,184  
NON-INTEREST EXPENSE
Salaries, wages and employee benefits 31,381 29,598 30,809 30,408 31,449
Premises and equipment 6,853 7,652 7,228 6,787 7,272
FDIC insurance 1,264 1,442 2,213 2,726 3,457
Corporate reorganization expense - 2,200 - - -
Other operating expenses   12,942     16,494     14,803     14,200     14,659  
Total non-interest expense   52,440     57,386     55,053     54,121     56,837  
Income before income taxes 33,619 26,632 32,505 30,262 23,317
Income tax expense   8,317     5,889     7,692     7,054     4,537  
NET INCOME   25,302     20,743     24,813     23,208     18,780  
Preferred dividends and accretion of preferred discount - - - - (1,691 )
Accelerated accretion from redemption of preferred stock   -     -     -     -     (1,452 )

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
$ 25,302   $ 20,743   $ 24,813   $ 23,208   $ 15,637  
 
PER SHARE OF COMMON STOCK
Basic earnings available to common shareholders $ 0.17 $ 0.14 $ 0.16 $ 0.15 $ 0.10
Diluted earnings available to common shareholders $ 0.17 $ 0.14 $ 0.16 $ 0.15 $ 0.10
Average shares - basic 152,099,546 151,773,327 151,693,223 151,601,052 150,461,063
Average shares - diluted 152,392,315 152,068,706 151,927,269 151,835,402 150,765,883
 
SUPPLEMENTAL DATA (annualized, average)
Return on assets 1.21 % 0.97 % 1.15 % 1.08 % 0.88 %
Adjusted return on assets (3) 1.16 % 1.08 % 1.15 % 1.08 % 0.80 %
Return on total equity 8.56 % 7.02 % 8.59 % 8.37 % 6.39 %
Return on common equity 8.56 % 7.02 % 8.59 % 8.37 % 5.93 %
Return on tangible common equity (1) 11.12 % 9.17 % 11.33 % 11.16 % 8.03 %
Efficiency ratio (4) 57.47 % 59.73 % 58.54 % 58.25 % 59.61 %
                     
 
(4) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES
 
Efficiency Ratio Calculation
Non-interest expense $ 52,440 $ 57,386 $ 55,053 $ 54,121 $ 56,837
Less:
Corporate reorganization expense   -     2,200     -     -     -  
Operating expenses $ 52,440   $ 55,186   $ 55,053   $ 54,121   $ 56,837  
 
Net interest income (taxable equivalent) $ 68,645 $ 69,409 $ 69,426 $ 70,087 $ 71,112
 
Non-interest income 24,241 21,497 23,141 22,388 24,184
Less:
Loss on sale of building - - (1,000 ) - -
Loss on debt extinguishment - (1,635 ) (998 ) - -
Net gains (losses) from fair value changes on subordinated debentures 1,645 (1,543 ) (506 ) (430 ) (51 )
Net gains on sales of investment securities   -     1,697     1,022     -     -  
Adjusted revenue $ 91,241   $ 92,387   $ 94,049   $ 92,905   $ 95,347  
 
Efficiency Ratio   57.47 %   59.73 %   58.54 %   58.25 %   59.61 %
 
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2012
         
 
 
Unaudited, dollars in thousands except share and per share data
As of and for the Quarter Ended
CHARGE-OFFS   3/31/2012       12/31/2011       9/30/2011       6/30/2011       3/31/2011  
 
Loan charge-offs $ 8,722   $ 9,896   $ 8,374   $ 10,512   $ 18,753  
Recoveries on loans   (1,534 )   (3,463 )   (1,538 )   (2,461 )   (1,659 )
Net loan charge-offs $ 7,188   $ 6,433   $ 6,836   $ 8,051   $ 17,094  
Net loan charge-offs to average loans (annualized)   0.56 %   0.50 %   0.53 %   0.61 %   1.31 %
 
NET CHARGE-OFF DETAIL
Commercial and industrial loans and leases $ 1,925 $ 2,648 $ 1,962 $ 5,066 $ 9,319
 
Commercial real estate-permanent 1,933 517 83 1,242 3,946
Commercial real estate-construction   673     (1,337 )   2,637     828     873  
Total commercial real estate loans 2,606 (820 ) 2,720 2,070 4,819
 
Residential mortgages 560 993 998 483 1,643
Home equity lines and loans 1,855 2,429 596 833 1,158
All other consumer loans   242     1,183     560     (401 )   155  
Total consumer loans   2,657     4,605     2,154     915     2,956  
 
Net loans charged-off $ 7,188   $ 6,433   $ 6,836   $ 8,051   $ 17,094  
 
As of
ASSET QUALITY AND OTHER DATA   3/31/2012       12/31/2011       9/30/2011       6/30/2011       3/31/2011  
 
Non-accrual commercial and industrial loans and leases $ 32,485 $ 31,081 $ 29,995 $ 31,275 $ 34,122
 
Non-accrual commercial real estate-permanent 5,156 7,403 8,314 11,879 15,407
Non-accrual commercial real estate-construction   14,336     12,218     14,549     15,844     18,012  
Total non-accrual commercial real estate loans 19,492 19,621 22,863 27,723 33,419
 
Non-accrual residential mortgages 4,077 4,504 4,472 5,196 5,303
Non-accrual home equity lines and loans 2,110 3,046 1,763 1,527 1,965
All other non-accrual consumer loans   1,695     3,176     1,907     2,062     1,810  
Total non-accrual consumer loans 7,882 10,726 8,142 8,785 9,078
         
Total non-accrual loans 59,859 61,428 61,000 67,783 76,619
 
Restructured loans   6,506     5,548     4,372     3,833     351  
Total non-performing loans 66,365 66,976 65,372 71,616 76,970
 
Other real estate owned and repossessed assets   7,647     7,716     8,029     8,407     7,653  
Total non-performing assets   74,012     74,692     73,401     80,023     84,623  
 
Loans 90+ days past due & still accruing   1,588     2,010     1,408     1,567     2,183  
Total non-performing assets and loans 90+ days past due $ 75,600   $ 76,702   $ 74,809   $ 81,590   $ 86,806  
         
Allowance for loan and lease losses $ 121,452   $ 126,640   $ 131,073   $ 137,909   $ 142,960  
Allowance for loan and lease losses/non-performing loans   183.0 %   189.1 %   200.5 %   192.6 %   185.7 %
Allowance for loan and lease losses/non-performing assets and loans 90+ days past due   160.7 %   165.1 %   175.2 %   169.0 %   164.7 %
Allowance for loan and lease losses/total loans and leases   2.33 %   2.44 %   2.54 %   2.66 %   2.73 %
Provision/charge-offs, net   27.8 %   31.1 %   0.0 %   37.3 %   58.5 %
Classified loans $ 347,033   $ 370,439   $ 374,850   $ 403,145   $ 438,275  
Classified loans/total loans and leases   6.67 %   7.14 %   7.26 %   7.78 %   8.36 %
Delinquent loans $ 24,068   $ 24,801   $ 28,824   $ 20,413   $ 25,342  
Delinquent loans/total loans and leases   0.46 %   0.48 %   0.56 %   0.39 %   0.48 %
 
 
As of
REGULATORY CAPITAL DATA   3/31/2012       12/31/2011       9/30/2011       6/30/2011       3/31/2011  
 
Tier 1 Capital $ 1,005,009   $ 978,302   $ 955,766   $ 922,457   $ 889,473  
Tier 1 Leverage Ratio   12.53 %   12.00 %   11.63 %   11.20 %   10.66 %
Tier 1 Ratio (%)   17.46 %   17.12 %   16.85 %   16.43 %   15.66 %
Total Capital $ 1,077,587   $ 1,050,417   $ 1,027,393   $ 992,729   $ 960,459  
Total Capital Ratio (%)   18.72 %   18.38 %   18.12 %   17.68 %   16.91 %
Total Risk-Weighted Assets $ 5,757,306   $ 5,714,643   $ 5,670,722   $ 5,615,341   $ 5,679,123  
 
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2012
         
 
 
Unaudited, dollars in thousands except share and per share data
As of
PERIOD END BALANCES: 3/31/2012   12/31/2011   9/30/2011   6/30/2011   3/31/2011
 
Earning Assets / Liabilities

Loan portfolio composition (regulatory):
Commercial / industrial $ 853,379 $ 833,534 $ 813,356 $ 838,489 $ 808,118
Commercial real estate (a) 1,753,986 1,737,383 1,697,975 1,715,616 1,749,215
Residential mortgage 1,269,505 1,270,896 1,272,478 1,295,463 1,295,014
Real estate construction and land development 210,976 212,306 216,250 207,643 270,584
Home equity 756,803 771,792 766,299 764,467 738,629
Consumer 210,069 209,082 213,014 213,570 228,904
Other loans   146,938   153,108   181,903   143,678   154,682
Total loans 5,201,656 5,188,101 5,161,275 5,178,926 5,245,146
 
 
Investment securities and other securities 2,335,421 2,314,111 2,373,278 2,290,568 2,235,777
Other earning assets   344,427   321,885   422,942   513,132   392,337
Total earning assets (net of loan loss reserve) $ 7,760,052 $ 7,697,457 $ 7,826,422 $ 7,844,717 $ 7,730,300
(a) Includes owner occupied
 

Loan portfolio composition (internal):
Commercial & industrial loans and leases
Business purpose, real estate secured $ 864,284 $ 895,028 $ 892,952 $ 884,606 $ 896,521
Business purpose, not secured by real estate 963,641 919,720 927,631 913,115 888,249
Owner occupied commercial real estate
- Permanent 572,103 563,963 566,732 577,092 578,332
- Construction / development 38,546 36,631 28,927 27,003 38,775
Leasing   3,330   4,685   5,796   7,125   9,054
Total commercial & industrial loans and leases 2,441,904 2,420,027 2,422,038 2,408,941 2,410,931
 
Commercial real estate
Non-owner occupied
- Permanent 878,499 855,524 798,106 818,564 819,875
- Construction / development   151,697   156,064   168,537   171,063   206,924
Total commercial real estate 1,030,196 1,011,588 966,643 989,627 1,026,799
 
Consumer loans
Residential mortgage (personal purpose)
Permanent 686,974 704,655 709,342 719,578 736,862
Construction   7,835   5,667   7,606   5,909   4,505
Total residential mortgages 694,809 710,322 716,948 725,487 741,367
 
Home equity loans and direct installment loans 315,419 337,242 362,808 388,173 415,599
Home equity lines of credit   421,897   410,316   394,386   367,127   325,186
Total home equity lines and loans 737,316 747,558 757,194 755,300 740,785
 
Private banking credit lines 114,667 121,296 112,011 119,850 139,721
Indirect vehicle loans and other   165,855   165,094   169,297   170,869   179,982
All other consumer loans   280,522   286,390   281,308   290,719   319,703
Total consumer loans 1,712,647 1,744,270 1,755,450 1,771,506 1,801,855
 
Loans and leases 5,184,747 5,175,885 5,144,131 5,170,074 5,239,585
 
Loans held-for-sale 16,909 12,216 17,144 8,852 5,561
         
Total loans and leases $ 5,201,656 $ 5,188,101 $ 5,161,275 $ 5,178,926 $ 5,245,146
 

Deposit composition:
Savings $ 495,191 $ 454,003 $ 451,767 $ 464,055 $ 457,395
NOW accounts 1,294,591 1,293,148 1,311,819 1,158,161 1,128,644
Money market accounts 1,698,427 1,686,909 1,651,185 1,631,779 1,655,115
CDs less than $100k 1,089,601 1,138,908 1,213,798 1,261,026 1,433,808
CDs $100k or greater   426,548   438,148   531,111   589,329   423,733
Total interest bearing deposits   5,004,358   5,011,116   5,159,680   5,104,350   5,098,695
 
Non-interest bearing deposits   884,025   863,703   833,311   839,811   834,321
 
Total deposits $ 5,888,383 $ 5,874,819 $ 5,992,991 $ 5,944,161 $ 5,933,016
             
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2012
     
 
 
Unaudited, dollars in thousands except share and per share data
 
Quarterly, as of
3/31/2012   12/31/2011   9/30/2011   6/30/2011   3/31/2011
Avg Bal Yield Avg Bal Yield Avg Bal Yield Avg Bal Yield Avg Bal Yield
 
Total loans* $ 5,179,220 4.89 % $ 5,149,546 4.99 % $ 5,122,557 5.15 % $ 5,228,365 5.24 % $ 5,311,204 5.34 %
Investment securities* 2,318,109 4.02 % 2,355,178 3.97 % 2,287,630 4.21 % 2,258,355 4.32 % 2,245,416 4.39 %
Interest earning deposits   278,140 0.19 %   390,228 0.26 %   543,410 0.24 %   467,157 0.20 %   508,684 0.22 %
 
Total earning assets   7,775,469 4.46 %   7,894,952 4.45 %   7,953,597 4.54 %   7,953,877 4.68 %   8,065,304 4.75 %
Total assets   8,397,381   8,525,271   8,588,269   8,599,923   8,701,649
 
Savings 471,562 0.13 % 454,688 0.15 % 456,271 0.18 % 462,870 0.18 % 442,830 0.19 %
NOW accounts 1,238,704 0.15 % 1,269,670 0.17 % 1,211,663 0.18 % 1,188,644 0.22 % 1,148,991 0.22 %
Money market accounts 1,679,232 0.40 % 1,669,090 0.44 % 1,647,975 0.59 % 1,638,733 0.60 % 1,656,059 0.59 %
CDs   1,542,539 1.31 %   1,668,098 1.36 %   1,798,414 1.47 %   1,857,969 1.66 %   1,889,073 1.76 %
 
Total interest bearing deposits   4,932,037 0.59 %   5,061,546 0.65 %   5,114,323 0.77 %   5,148,216 0.85 %   5,136,953 0.90 %
 
Non-interest bearing deposits   852,730   835,699   837,953   837,635   813,704
Total deposits   5,784,767 0.51 %   5,897,245 0.56 %   5,952,276 0.66 %   5,985,851 0.74 %   5,950,657 0.78 %
 
Customer repurchase agreements 524,575 0.42 % 514,961 0.43 % 512,847 0.46 % 522,147 0.50 % 546,100 0.53 %
Structured repurchase agreements 85,000 4.33 % 128,968 4.05 % 163,098 4.13 % 165,000 4.13 % 165,000 4.14 %
Short-term borrowings - 0.00 % 6,638 0.00 % 6,732 0.00 % 6,713 0.00 % 6,850 0.00 %
Federal Home Loan Bank advances 615,983 4.55 % 616,411 4.50 % 623,713 4.50 % 627,525 4.50 % 651,208 4.49 %
Subordinated debentures   145,274 5.18 %   143,800 5.60 %   143,266 6.63 %   142,836 6.70 %   142,781 6.73 %
Total deposits and borrowings   7,155,599 0.99 %   7,308,023 1.04 %   7,401,932 1.16 %   7,450,072 1.22 %   7,462,596 1.27 %
Total interest bearing liabilities $ 6,302,869 1.12 % $ 6,472,324 1.17 % $ 6,563,979 1.31 % $ 6,612,437 1.38 % $ 6,648,892 1.43 %
 
Net interest margin (FTE) 3.55 % 3.49 % 3.46 % 3.53 % 3.58 %
 
Wealth assets:
Assets under administration $ 4,382,922 $ 4,197,612 $ 4,067,918 $ 4,364,447 $ 4,057,142
Assets under management 2,269,351 2,141,737 2,118,076 2,247,042 2,136,596
(included above)
 
*Fully taxable equivalent ("FTE") basis, using a 35% effective tax rate.
 
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2012
         
 
 
Unaudited
Quarterly, as of
3/31/2012   12/31/2011   9/30/2011   6/30/2011   3/31/2011
STATES OF OPERATION AND BANKING OFFICES
BY STATE (LATEST AVAILABLE DATA)
 

PA
Total number of retail branch offices 120 121 122 122 122
Total number of insured subsidiaries
(Bank & Thrift subsidiaries) 1 1 1 1 1
Total number of ATMs 122 128 129 131 132
 

MD
Total number of retail branch offices 1 1 1 1 1
Total number of insured subsidiaries
(Bank & Thrift subsidiaries) - - - - -
Total number of ATMs 1 1 1 1 1
 

TOTAL
Total number of retail branch offices 121 122 123 123 123
Total number of insured subsidiaries
(Bank & Thrift subsidiaries) 1 1 1 1 1
Total number of ATMs 123 129 130 132 133
 
EOP employees (full-time equivalent) 1,681 1,688 1,683 1,700 1,676

Copyright Business Wire 2010

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