National Penn Bancshares, Inc. Reports First Quarter 2014 Results

National Penn Bancshares, Inc. (Nasdaq: NPBC) reported net income of $22.7 million, or $0.16 per diluted share, for the first quarter of 2014, compared to $21.2 million or $0.15 per diluted share in the fourth quarter of 2013 which included a non-recurring charge related to previously announced expense reduction initiatives. Adjusted net income 1 for the fourth quarter was $25.1 million, or $0.17 per diluted share. Return on average assets for the first quarter of 2014 was 1.09%.

“During the quarter, the strength of our balance sheet allowed us to consummate the repurchase of approximately five percent of our outstanding shares,” said Scott V. Fainor, president and CEO of National Penn. “We are also pleased to report once again consistent, high-level performance achieved by our Company for the first quarter of 2014.”

The net interest margin for the first quarter of 2014 was 3.44%, compared to 3.51% in the prior quarter which benefitted from the impact of a loan prepayment which improved the prior quarter margin by approximately five basis points. Average loans increased $85.8 million or 6.6% on an annualized basis, driven by growth in commercial loans, while loan quality continued to improve in the quarter.

During the first quarter, National Penn continued to benefit from strong asset quality as non-performing assets decreased 6.7% and classified loans decreased 8.9% from the prior quarter. Over the last twelve months, non-performing assets decreased 11.0%, while classified loans decreased 28.1%. Further reflective of the strength of National Penn’s credit quality profile, non-performing loans were 0.89% of total loans and the allowance for loan loss as a percentage of non-performing loans was 194% at March 31, 2014. The provision for the quarter remained relatively consistent at $1.3 million, reflective of modest loan growth and continued strength in asset quality.

Operating expenses 1 during the first quarter remained stable at $52.3 million, compared to $51.8 million in the prior quarter exclusive of a restructuring charge. Our disciplined approach resulted in operating expenses 1 remaining relatively flat from the same period in 2013. During the first quarter, non-interest income decreased $1.2 million, primarily as a result of seasonality, coupled with a $0.5 million loss on an unconsolidated equity investment.

As previously announced, National Penn’s Board of Directors declared a second quarter dividend of ten cents per common share to shareholders of record as of Saturday, May 3, 2014, payable on Friday, May 16, 2014. The dividend declaration was supported by National Penn’s continued strong capital levels as the tier 1 common and tangible common equity to tangible assets ratios were 13.22% and 9.86%, respectively at March 31, 2014.

“We remain disciplined in our approach to mergers and acquisitions, while focused on continuing to build long-term shareholder value,” said Scott V. Fainor. “We are well-positioned to participate in the consolidation of the industry and will continue to evaluate opportunities consistent with our strategic objectives.”

About National Penn Bancshares, Inc.:

National Penn Bancshares, Inc., with approximately $8.6 billion in assets, is a bank holding company headquartered in Allentown, Pennsylvania. National Penn Bank operates 119 branch offices comprising 118 branches in Pennsylvania and one branch in Maryland.

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; and National Penn Insurance Services Group, Inc., including its Higgins Insurance and Caruso Benefits Group divisions.

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 adjusted return on average assets exclude the effects of certain gains and losses, adjusted for taxes when applicable. Adjusted net income and adjusted return on average assets 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 also adjusted to 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: difficult conditions in the capital markets and the economy generally, 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), delayed improvement in the credit quality of loans, the effect of credit risk exposure, the ability to strategically manage our capital position and to raise capital, allowance for loan losses may prove inadequate, variations in interest rates, unanticipated costs from our corporate relocation plan, 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, competition for personnel and from other financial institutions, interruptions or breaches of National Penn’s security systems, the development and maintenance of National Penn’s information technology, potential dilution of National Penn’s shareholders, the ability of National Penn and its subsidiaries to pay dividends, severe weather and natural disasters, 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, 2013, 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 3/31/2014
 
Unaudited, dollars in thousands except share and per share data
As of
3/31/2014   12/31/2013   3/31/2013
SUMMARY BALANCE SHEET                
Total assets $ 8,557,381 $ 8,591,848 $ 8,323,777
Investment securities and other securities 2,424,404 2,396,298 2,333,548
Total loans 5,377,727 5,338,219 5,249,773
Deposits 6,139,424 6,072,578 6,184,060
Borrowings 1,245,925 1,282,289 922,092
Shareholders' equity 1,082,449 1,131,866 1,136,798
Tangible book value per common share (2) $ 5.88 $ 5.94 $ 5.97
Tangible common equity / tangible assets (2) 9.86 % 10.41 % 10.79 %
 
Three Months Ended
3/31/2014   12/31/2013   3/31/2013
EARNINGS                
Total interest income $ 70,133 $ 72,085 $ 72,595
Total interest expense   7,844     8,013     10,971  
Net interest income 62,289 64,072 61,624
Provision for loan losses   1,251     1,000     1,500  
Net interest income after provision for loan losses 61,038 63,072 60,124
Net gains from fair value changes of subordinated debentures - - 2,111
Net gains on investment securities 8 - 25
Other non-interest income 21,470 22,714 23,441
Loss on debt extinguishment - - 64,888
Corporate reorganization expense - 6,000 -
Other non-interest expense   52,337     51,833     52,434  
Income (loss) before income taxes 30,179 27,953 (31,621 )
Income tax expense (benefit)   7,469     6,741     (14,217 )
Net income (loss) $ 22,710   $ 21,212   $ (17,404 )
 
PERFORMANCE RATIOS                
Net interest margin 3.44 % 3.51 % 3.49 %
Return on average assets 1.09 % 1.00 % NM
Adjusted return on average assets (3) 1.09 % 1.19 % 1.14 %
Return on average shareholders' equity 8.42 % 7.44 % NM
Return on average tangible common equity (1) 11.11 % 9.72 % NM
Adjusted return on average tangible common equity 11.11 % 11.51 % 10.85 %
Efficiency ratio (4) 59.60 % 57.00 % 58.61 %
 
PER SHARE                
Basic earnings $ 0.16 $ 0.15 $ (0.12 )
Diluted earnings 0.16 0.15 (0.12 )
Dividends 0.10 0.10 - (a)
Average shares - basic 141,360,180 145,761,496 145,394,967
Average shares - diluted 141,877,066 146,244,467 145,394,967
                 
 
(1) RECONCILIATION TABLES FOR NON-GAAP FINANCIAL MEASURES
Three Months Ended
3/31/2014   12/31/2013   3/31/2013
Return on average tangible common equity
Return on average shareholders' equity 8.42 % 7.44 % NM
Effect of goodwill and intangibles   2.69 %   2.28 %   NM  
Return on average tangible common equity   11.11 %   9.72 %   NM  
Average tangible equity
Average shareholders' equity $ 1,093,797 $ 1,130,943 $ 1,142,829
Average goodwill and intangibles   (264,775 )   (265,516 )   (268,336 )
Average tangible common equity $ 829,022   $ 865,427   $ 874,493  
 
Adjusted net income reconciliation
Net income (loss) $ 22,710 $ 21,212 $ (17,404 )
After tax unrealized fair value gain on subordinated debentures - - (1,372 )
After tax loss on debt extinguishment - - 42,177
After tax corporate reorganization expense   -     3,900     -  
Adjusted net income $ 22,710   $ 25,112   $ 23,401  

 
Earnings per share
Net income (loss) $ 0.16 $ 0.15 $ (0.12 )
After tax unrealized fair value gain on subordinated debentures - - (0.01 )
After tax loss on debt extinguishment - - 0.29
After tax corporate reorganization expense   -     0.03     -  
Adjusted net income $ 0.16   $ 0.17   (b) $ 0.16  
 
(a) In lieu of a first quarter 2013 cash dividend, the Company paid an additional dividend of $0.10 per share in the fourth quarter of 2012
(b) Difference in summation of quarterly adjusted net income due to rounding
 
       
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2014
 
Unaudited, dollars in thousands except share and per share data
 
As of
  3/31/2014       12/31/2013       9/30/2013       6/30/2013       3/31/2013  
BALANCE SHEET - ASSETS
Cash and due from banks $ 128,991 $ 102,241 $ 137,795 $ 118,575 $ 87,588
Interest-earning deposits with banks   55,335     181,282     78,895     63,193     93,024  
Total cash and cash equivalents 184,326 283,523 216,690 181,768 180,612
 
Investment securities available-for-sale, at fair value 1,442,304 1,894,107 1,875,676 1,799,831 1,813,348
Investment securities held-to-maturity 918,340 438,445 444,898 452,275 458,041
Other securities 63,760 63,746 44,107 61,252 62,159
Loans held-for-sale 5,171 4,951 2,752 12,289 14,934
 
Loans 5,372,556 5,333,268 5,279,939 5,249,007 5,234,839
Allowance for loan losses   (93,252 )   (96,367 )   (100,763 )   (104,533 )   (107,164 )
Loans, net 5,279,304 5,236,901 5,179,176 5,144,474 5,127,675
 
Premises and equipment, net 97,707 96,232 93,871 94,673 95,592
Accrued interest receivable 27,408 27,130 27,831 28,453 29,524
Bank owned life insurance 149,045 147,869 146,906 145,670 144,452
Other real estate owned and other repossessed assets 2,138 1,278 1,569 1,899 2,729
Goodwill 258,279 258,279 258,279 258,279 258,279
Other intangible assets, net 6,156 6,854 7,656 8,470 9,533
Unconsolidated investments 8,214 8,713 9,177 8,673 9,354
Other assets   115,229     123,820     116,035     118,579     117,545  
TOTAL ASSETS $ 8,557,381   $ 8,591,848   $ 8,424,623   $ 8,316,585   $ 8,323,777  
 
BALANCE SHEET - LIABILITIES
Non-interest bearing deposits $ 1,028,572 $ 970,051 $ 1,026,546 $ 942,127 $ 919,783
Interest bearing deposits   5,110,852     5,102,527     5,408,910     5,080,336     5,264,277  
Total deposits 6,139,424 6,072,578 6,435,456 6,022,463 6,184,060
 
Customer repurchase agreements 561,170 551,736 521,779 547,736 549,894
Repurchase agreements 50,000 50,000 50,000 50,000 175,000
Federal Home Loan Bank advances 557,434 603,232 112,406 414,142 119,877
Subordinated debentures 77,321 77,321 77,321 77,321 77,321
Accrued interest payable and other liabilities   89,583     105,115     96,383     89,165     80,827  
TOTAL LIABILITIES   7,474,932     7,459,982     7,293,345     7,200,827     7,186,979  
 
BALANCE SHEET - SHAREHOLDERS' EQUITY
Common stock 1,386,265 1,387,966 1,387,052 1,386,178 1,385,255
Accumulated deficit (167,191 ) (175,990 ) (182,628 ) (192,623 ) (203,084 )
Accumulated other comprehensive (loss) income (5,295 ) (21,157 ) (13,504 ) (17,189 ) 15,981
Treasury stock   (131,330 )   (58,953 )   (59,642 )   (60,608 )   (61,354 )
TOTAL SHAREHOLDERS' EQUITY   1,082,449     1,131,866     1,131,278     1,115,758     1,136,798  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 8,557,381   $ 8,591,848   $ 8,424,623   $ 8,316,585   $ 8,323,777  
 
 
PER SHARE DATA
Book value $ 7.78 $ 7.76 $ 7.76 $ 7.66 $ 7.81
Tangible book value (2) $ 5.88 $ 5.94 $ 5.94 $ 5.83 $ 5.97
Dividends - quarterly $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ - (a)
Shares outstanding (end of period, net of treasury) 139,145,669 145,798,751 145,723,276 145,608,945 145,551,796
                     
 
(2) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES
 
Total shareholders' equity $ 1,082,449 $ 1,131,866 $ 1,131,278 $ 1,115,758 $ 1,136,798
Goodwill and intangibles   (264,435 )   (265,133 )   (265,935 )   (266,749 )   (267,812 )
Tangible common equity $ 818,014   $ 866,733   $ 865,343   $ 849,009   $ 868,986  
Shares outstanding 139,145,669 145,798,751 145,723,276 145,608,945 145,551,796
Tangible book value per share $ 5.88 $ 5.94 $ 5.94 $ 5.83 $ 5.97
 
Total assets $ 8,557,381 $ 8,591,848 $ 8,424,623 $ 8,316,585 $ 8,323,777
Goodwill and intangibles   (264,435 )   (265,133 )   (265,935 )   (266,749 )   (267,812 )
Tangible assets $ 8,292,946   $ 8,326,715   $ 8,158,688   $ 8,049,836   $ 8,055,965  
Tangible common equity/tangible assets 9.86 % 10.41 % 10.61 % 10.55 % 10.79 %
 
(3) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES
 
Adjusted net income (1) $ 22,710 $ 25,112 $ 24,560 $ 25,019 $ 23,401
Average assets $ 8,479,686 $ 8,385,094 $ 8,310,626 $ 8,326,499 $ 8,298,815
Adjusted return on average assets (annualized) 1.09 % 1.19 % 1.17 % 1.21 % 1.14 %
 
       
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2014
 
Unaudited, dollars in thousands except share and per share data
 
For the Quarter Ended
3/31/2014   12/31/2013   9/30/2013   6/30/2013   3/31/2013
INTEREST INCOME
Loans, including fees $ 52,582 $ 54,600 $ 54,577 $ 55,260 $ 55,721
Investment securities
Taxable 11,121 10,912 10,105 9,795 9,685
Tax-exempt 6,404 6,534 6,768 7,005 7,114
Deposits with banks   26     39     48     41     75  
Total interest income   70,133     72,085     71,498     72,101     72,595  
INTEREST EXPENSE
Deposits 4,773 5,166 5,468 5,831 5,914
Customer repurchase agreements 393 407 440 460 498
Repurchase agreements 601 615 614 623 719
Short-term borrowings - - - - 41
Federal Home Loan Bank advances 1,548 1,287 1,325 1,383 2,334
Subordinated debentures   529     538     539     550     1,465  
Total interest expense   7,844     8,013     8,386     8,847     10,971  
Net interest income 62,289 64,072 63,112 63,254 61,624
Provision for loan losses   1,251     1,000     1,250     1,500     1,500  
Net interest income after provision for loan losses   61,038     63,072     61,862     61,754     60,124  
NON-INTEREST INCOME
Wealth management 6,866 6,609 6,883 6,986 6,831
Service charges on deposit accounts 3,384 3,827 3,894 3,743 3,770
Insurance commissions and fees 3,597 3,028 3,071 3,326 3,267
Cash management and electronic banking fees 4,526 4,782 4,860 4,821 4,451
Mortgage banking 716 902 1,621 2,122 1,855
Bank owned life insurance 1,198 1,389 1,260 1,239 1,228
Earnings (losses) of unconsolidated investments (477 ) 57 661 6 (14 )
Other operating income 1,660 2,120 2,551 2,703 2,053
Net gains from fair value changes of subordinated debentures - - - - 2,111
Net gains on sales of investment securities   8     -     7     22     25  
Total non-interest income   21,478     22,714     24,808     24,968     25,577  
NON-INTEREST EXPENSE
Salaries, wages and employee benefits 29,201 29,035 29,598 29,137 29,230
Premises and equipment 8,212 7,721 7,724 7,511 7,491
FDIC insurance 1,317 1,356 1,404 1,494 1,213
Other operating expenses 13,607 13,721 14,877 15,011 14,500
Loss on debt extinguishment - - - - 64,888
Corporate reorganization expense   -     6,000     -     -     -  
Total non-interest expense   52,337     57,833     53,603     53,153     117,322  
Income (loss) before income taxes 30,179 27,953 33,067 33,569 (31,621 )
Income tax expense (benefit)   7,469     6,741     8,507     8,550     (14,217 )
NET INCOME (LOSS)   22,710     21,212     24,560     25,019     (17,404 )
 
PER SHARE
Basic earnings $ 0.16 $ 0.15 $ 0.17 $ 0.17 $ (0.12 )
Diluted earnings $ 0.16 $ 0.15 $ 0.17 $ 0.17 $ (0.12 )
Average shares - basic 141,360,180 145,761,496 145,669,300 145,580,155 145,394,967
Average shares - diluted 141,877,066 146,244,467 146,124,821 145,997,009 145,394,967
 
SUPPLEMENTAL DATA (annualized, average)
Return on assets 1.09 % 1.00 % 1.17 % 1.21 % NM
Adjusted return on assets (3) 1.09 % 1.19 % 1.17 % 1.21 % 1.14 %
Return on shareholders' equity 8.42 % 7.44 % 8.78 % 8.82 % NM
Return on tangible common equity (1) 11.11 % 9.72 % 11.55 % 11.53 % NM
Adjusted return on tangible common equity 11.11 % 11.51 % 11.55 % 11.53 % 10.85 %
Efficiency ratio (4) 59.60 % 57.00 % 58.16 % 57.43 % 58.61 %
                     
 
(4) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES
 
Efficiency ratio calculation
Non-interest expense $ 52,337 $ 57,833 $ 53,603 $ 53,153 $ 117,322
Less:
Loss on debt extinguishment - - - - 64,888
Corporate reorganization expense   -     6,000     -     -     -  
Operating expenses $ 52,337   $ 51,833   $ 53,603   $ 53,153   $ 52,434  
 
Net interest income (taxable equivalent) $ 66,351 $ 68,223 $ 67,371 $ 67,610 $ 66,015
 
Non-interest income 21,478 22,714 24,808 24,968 25,577
Less:
Net gains from fair value changes of subordinated debentures - - - - 2,111
Net gains on investment securities   8     -     7     22     25  
Adjusted revenue $ 87,821   $ 90,937   $ 92,172   $ 92,556   $ 89,456  
 
Efficiency ratio 59.60 % 57.00 % 58.16 % 57.43 % 58.61 %
 
"NM" - Denotes a value displayed as a percentage is not meaningful
 
     
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2014
   
Unaudited, dollars in thousands except share and per share data
 
For the Quarter Ended
3/31/2014   12/31/2013   9/30/2013   6/30/2013   3/31/2013
CHARGE-OFFS
Loan charge-offs $ 5,018 $ 7,523 $ 5,774 $ 5,314 $ 6,382
Recoveries on loans   (652 )   (2,127 )   (754 )   (1,183 )   (1,091 )
Net loan charge-offs $ 4,366   $ 5,396   $ 5,020   $ 4,131   $ 5,291  
Net loan charge-offs to average loans (annualized) 0.33 % 0.41 % 0.38 % 0.32 % 0.41 %
 
NET CHARGE-OFF DETAIL
Commercial and industrial loans $ 1,150 $ 5,157 $ 3,059 $ 2,065 $ 1,869
 
Commercial real estate-permanent 423 (523 ) 909 396 282
Commercial real estate-construction   30     (167 )   (29 )   93     318  
Total commercial real estate loans 453 (690 ) 880 489 600
 
Residential mortgages 1,681 56 209 522 1,333
Home equity lines and loans 784 439 423 903 747
All other consumer loans   298     434     449     152     742  
Total consumer loans

2,763
929 1,081 1,577 2,822
         
Net loans charged-off $ 4,366   $ 5,396   $ 5,020   $ 4,131   $ 5,291  
 
As of
3/31/2014   12/31/2013   9/30/2013   6/30/2013   3/31/2013
ASSET QUALITY AND OTHER DATA
Non-accrual commercial and industrial loans $ 13,501 $ 14,935 $ 23,101 $ 23,023 $ 23,323
 
Non-accrual commercial real estate-permanent 3,513 4,258 3,760 5,129 5,489
Non-accrual commercial real estate-construction   10,425     12,128     5,345     5,666     6,067  
Total non-accrual commercial real estate loans 13,938 16,386 9,105 10,795 11,556
 
Non-accrual residential mortgages 6,779 7,037 6,485 6,276 5,608
Non-accrual home equity lines and loans 4,041 4,787 4,403 4,339 4,364
All other non-accrual consumer loans   1,701     1,731     1,705     1,916     1,595  
Total non-accrual consumer loans 12,521 13,555 12,593 12,531 11,567
         
Total non-accrual loans 39,960 44,876 44,799 46,349 46,446
 
Restructured loans   8,152     7,715     10,006     9,109     7,314  
Total non-performing loans 48,112 52,591 54,805 55,458 53,760
 
Other real estate owned and repossessed assets   2,138     1,278     1,569     1,899     2,729  
Total non-performing assets 50,250 53,869 56,374 57,357 56,489
 
Loans 90+ days past due & still accruing   2,310     3,466     2,608     2,023     2,324  
Total non-performing assets and loans 90+ days past due $ 52,560   $ 57,335   $ 58,982   $ 59,380   $ 58,813  
 
Allowance for loan losses $ 93,252   $ 96,367   $ 100,763   $ 104,533   $ 107,164  
Allowance for loan losses/non-performing loans   193.8 %   183.2 %   183.9 %   188.5 %   199.3 %
Allowance for loan losses/non-performing assets and loans
90+ days past due   177.4 %   168.1 %   170.8 %   176.0 %   182.2 %
Allowance for loan losses/total loans   1.73 %   1.81 %   1.91 %   1.99 %   2.04 %
Provision/charge-offs, net   28.7 %   18.5 %   24.9 %   36.3 %   28.4 %
Classified loans $ 174,465   $ 191,589   $ 218,615   $ 234,085   $ 242,560  
Classified loans/total loans   3.24 %   3.59 %   4.14 %   4.45 %   4.62 %
Delinquent loans (c) $ 16,819   $ 29,435   $ 22,550   $ 22,512   $ 24,110  
Delinquent loans/total loans   0.31 %   0.55 %   0.43 %   0.43 %   0.46 %
 
REGULATORY CAPITAL DATA
Tier 1 Capital $ 888,565   $ 941,926   $ 938,040   $ 924,922   $ 927,397  
Tier 1 Leverage Ratio   10.83 %   11.63 %   11.67 %   11.56 %   11.63 %
Tier 1 Ratio   14.44 %   15.46 %   15.63 %   15.51 %   15.41 %
Total Capital $ 965,705   $ 1,018,316   $ 1,013,371   $ 999,839   $ 1,002,999  
Total Capital Ratio   15.69 %   16.72 %   16.89 %   16.77 %   16.67 %
Total Risk-Weighted Assets $ 6,155,090   $ 6,091,183   $ 6,001,065   $ 5,963,754   $ 6,016,630  
 
(c) Includes loans 30-89 days past due and loans 90+ days past due and still accruing
 
     
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2014
   
Unaudited, dollars in thousands except share and per share data
 
As of
Earning Assets / Liabilities 3/31/2014   12/31/2013   9/30/2013   6/30/2013   3/31/2013

Loan portfolio composition (regulatory):
Commercial / industrial $ 865,533 $ 796,797 $ 820,669 $ 861,494 $ 857,728
Commercial real estate (d) 1,943,744 1,926,978 1,913,180 1,887,908 1,863,381
Residential mortgage 1,161,220 1,181,020 1,170,750 1,185,986 1,191,075
Real estate construction and land development 243,216 256,483 234,945 201,316 180,298
Home equity 787,334 794,709 786,835 778,521 776,166
Consumer 210,395 209,729 205,446 201,580 201,349
Other   166,285   172,503   150,866   144,491   179,776
Total 5,377,727 5,338,219 5,282,691 5,261,296 5,249,773
 
 
Investment securities and other securities 2,424,404 2,396,298 2,364,681 2,313,358 2,333,548
Other earning assets   55,335   181,282   78,895   63,193   93,024
Total earning assets (net of loan loss reserve) $ 7,764,214 $ 7,819,432 $ 7,625,504 $ 7,533,314 $ 7,569,181
(d) Includes owner occupied
 

Loan portfolio composition (internal):
Commercial & industrial
Business purpose, real estate secured $ 861,101 $ 885,135 $ 897,757 $ 901,205 $ 891,229
Business purpose, not secured by real estate 1,002,296 939,121 935,857 976,281 1,000,141
Owner occupied commercial real estate
Permanent 593,595 589,765 585,807 609,615 604,278
Construction / development 47,505 46,415 41,088 31,058 32,603
Leasing   97   228   392   630   1,128
Total commercial & industrial 2,504,594 2,460,664 2,460,901 2,518,789 2,529,379
 
Commercial real estate
Non-owner occupied
Permanent 1,021,271 994,838 964,510 919,080 898,519
Construction / development   183,586   198,334   181,683   153,172   145,324
Total commercial real estate   1,204,857   1,193,172   1,146,193   1,072,252   1,043,843
Total commercial 3,709,451 3,653,836 3,607,094 3,591,041 3,573,222
 
Consumer
Residential mortgage (personal purpose)
Permanent 637,273 643,506 642,696 640,745 649,522
Construction   10,922   8,719   9,443   7,076   6,009
Total residential mortgages 648,195 652,225 652,139 647,821 655,531
 
Home equity and direct installment 180,996 193,089 208,333 220,401 237,088
Home equity lines of credit   572,301   569,519   550,417   530,104   507,347
Total home equity 753,297 762,608 758,750 750,505 744,435
 
Private banking credit lines 94,582 99,859 98,714 98,865 99,154
Indirect vehicle and other   167,031   164,740   163,242   160,775   162,497
All other consumer   261,613   264,599   261,956   259,640   261,651
Total consumer   1,663,105   1,679,432   1,672,845   1,657,966   1,661,617
 
Loans 5,372,556 5,333,268 5,279,939 5,249,007 5,234,839
 
Loans held-for-sale 5,171 4,951 2,752 12,289 14,934
         
Total loans $ 5,377,727 $ 5,338,219 $ 5,282,691 $ 5,261,296 $ 5,249,773
 

Deposit composition:
Savings $ 547,255 $ 526,576 $ 518,430 $ 527,216 $ 520,223
NOW accounts 1,667,272 1,655,425 1,958,116 1,545,659 1,471,185
Money market accounts 1,680,900 1,670,035 1,639,859 1,654,442 1,647,863
Time deposits less than $100k 870,921 896,700 925,118 963,238 991,380
Time deposits $100k or greater   344,504   353,791   367,387   389,781   633,626
Total interest bearing deposits 5,110,852 5,102,527 5,408,910 5,080,336 5,264,277
 
Non-interest bearing deposits   1,028,572   970,051   1,026,546   942,127   919,783
 
Total deposits $ 6,139,424 $ 6,072,578 $ 6,435,456 $ 6,022,463 $ 6,184,060
 
                       
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2014
   
Unaudited, dollars in thousands except share and per share data
Quarterly, as of
3/31/2014     12/31/2013     9/30/2013     6/30/2013     3/31/2013
Avg Bal Yield Avg Bal Yield Avg Bal Yield Avg Bal Yield Avg Bal Yield
 
Total loans* $ 5,342,648 4.04 % $ 5,256,841 4.17 % $ 5,229,366 4.19 % $ 5,244,930 4.27 % $ 5,223,015 4.37 %
Investment securities* 2,409,287 3.53 % 2,375,893 3.50 % 2,316,066 3.51 % 2,334,594 3.53 % 2,325,225 3.60 %
Interest earning deposits   69,222 0.15 %   89,530 0.17 %   102,581 0.19 %   94,788 0.17 %   119,834 0.25 %
 
Total earning assets   7,821,157 3.85 %   7,722,264 3.92 %   7,648,013 3.93 %   7,674,312 4.00 %   7,668,074 4.07 %
Total assets   8,479,686   8,385,094   8,310,626   8,326,499   8,298,815
 
Savings 534,699 0.10 % 524,647 0.10 % 524,178 0.11 % 525,494 0.11 % 505,513 0.11 %
NOW accounts 1,618,547 0.13 % 1,873,519 0.14 % 1,732,394 0.14 % 1,543,649 0.14 % 1,439,387 0.14 %
Money market accounts 1,671,200 0.21 % 1,649,960 0.23 % 1,655,133 0.27 % 1,646,691 0.29 % 1,645,838 0.30 %
Time deposits   1,233,794 1.06 %   1,273,664 1.07 %   1,312,810 1.09 %   1,464,421 1.08 %   1,507,667 1.10 %
 
Total interest bearing deposits   5,058,240 0.38 %   5,321,790 0.39 %   5,224,515 0.42 %   5,180,255 0.45 %   5,098,405 0.47 %
 
Non-interest bearing deposits   968,129   984,037   963,625   913,311   876,700
Total deposits   6,026,369 0.32 %   6,305,827 0.33 %   6,188,140 0.35 %   6,093,566 0.38 %   5,975,105 0.40 %
 
Customer repurchase agreements 541,041 0.29 % 529,541 0.30 % 518,569 0.34 % 523,585 0.35 % 547,706 0.37 %
Repurchase agreements 50,000 4.87 % 50,000 4.87 % 50,000 4.87 % 63,736 3.92 % 135,454 2.15 %
Short-term borrowings - 0.00 % 54 0.00 % - 0.00 % - 0.00 % 39,200 0.42 %
Federal Home Loan Bank advances 596,818 1.05 % 190,670 2.68 % 277,101 1.90 % 348,814 1.59 % 262,067 3.61 %
Subordinated debentures   77,321 2.77 %   77,321 2.76 %   77,321 2.77 %   77,321 2.85 %   125,207 4.75 %
Total deposits and borrowings   7,291,549 0.44 %   7,153,413 0.44 %   7,111,131 0.47 %   7,107,022 0.50 %   7,084,739 0.63 %
Total interest bearing liabilities $ 6,323,420 0.50 % $ 6,169,376 0.52 % $ 6,147,506 0.54 % $ 6,193,711 0.57 % $ 6,208,039 0.72 %
 
Net interest margin (FTE) 3.44 % 3.51 % 3.49 % 3.53 % 3.49 %
 
Wealth assets under management $ 2,497,185 $ 2,504,717 $ 2,388,991 $ 2,285,199 $ 2,328,042
 
*Fully taxable equivalent ("FTE") basis, using a 35% effective tax rate
 
 
Financial Update for National Penn Bancshares, Inc. (NPBC) for 3/31/2014
         
Unaudited
 
STATES OF OPERATION AND BANKING OFFICES BY STATE (LATEST AVAILABLE DATA)
 
Quarterly, as of
3/31/2014   12/31/2013   9/30/2013   6/30/2013   3/31/2013
 

PA
Total number of retail branch offices 118 119 119 119 118
Total number of insured subsidiaries
(Bank & Thrift subsidiaries) 1 1 1 1 1
Total number of ATMs 123 124 124 124 124
 

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 119 120 120 120 119
Total number of insured subsidiaries
(Bank & Thrift subsidiaries) 1 1 1 1 1
Total number of ATMs 124 125 125 125 125
 
EOP employees (full-time equivalent) 1,591 1,631 1,632 1,666 1,657
 

Copyright Business Wire 2010

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