EXHIBIT 99.1
Contact: | Catharine S. Bower, Communications Manager |
| | (610) 369-6618 or csbower@natpennbank.com |
National Penn Bancshares, Inc.
Reports First Quarter Net Income
BOYERTOWN, Pa., April 18, 2006 -- National Penn Bancshares, Inc. (Nasdaq: NPBC), the parent company of National Penn Bank, reported first quarter 2006 net income totaling $15.0 million, or $0.33 per diluted share. Net income increased 9.7% compared to $13.7 million earned in the first quarter of 2005, and diluted earnings per share increased 6.5% compared to diluted earnings per share of $0.31 in first quarter 2005.
National Penn’s first quarter earnings produced annualized returns on average assets and average shareholders’ equity of 1.24% and 13.00%, respectively.
The following significant events have occurred since December 31, 2005:
| · | On January 26, 2006, National Penn completed its acquisition of Nittany Financial Corp. and its subsidiary, Nittany Bank, headquartered in State College, PA, adding a successful financial services company in a rapidly growing market to the National Penn family. Nittany Financial added $323.1 million in additional assets, including $279.4 million in additional loans, as well as $249.7 million in additional deposits. |
| · | On March 27, 2006, National Penn merged Nittany Bank into National Penn Bank, and began operating Nittany Bank as a division of National Penn Bank, retaining the Nittany management team, similar to National Penn Bank’s other acquisition-based operating divisions. |
| · | National Penn’s record earnings in first quarter 2006 reflect in part National Penn’s increase in asset size, largely attributable to the Nittany Financial acquisition, as compared to first quarter 2005. |
| · | First quarter 2006 earnings also reflect increased non-interest income. Wealth management income increased $1.0 million, while various service charges and fees increased $934,000, over comparable amounts in first quarter 2005. |
| · | In first quarter 2006, National Penn received approximately $398,000 in partial settlement of an insurance claim filed with respect to the loan fraud discovered by National Penn in January 2005. National Penn continues to pursue all available avenues, including insurance, to recover its losses from the loan fraud, and to cooperate with law enforcement authorities in their investigation. |
| · | During first quarter 2006, National Penn completed construction of a new financial services center in Souderton, Bucks County, PA. The multi-purpose facility, which will house a community office and provide space for two National Penn affiliates, is scheduled to open on April 24, 2006. |
| · | On January 1, 2006, National Penn adopted Statement of Financial Accounting Standard (SFAS 123(R)), Share-Based Payment, requiring the expensing of our stock compensation programs based on the fair value of the awards. The impact of the adoption of SFAS 123(R) is included in the financial results for the first quarter 2006 and all prior periods have been restated as a result of the adoption of the modified retrospective method. |
| · | On April 10, 2006, National Penn Capital Advisors, Inc., a subsidiary of National Penn Bank, announced the acquisition of RESOURCES for Retirement, Inc., a retirement plan investment advisory firm based in Newtown, PA. This acquisition will significantly expand our 401(k) business with larger companies. RESOURCES will retain its name and current management and operate as a division of National Penn Capital Advisors, Inc. |
As of March 31, 2006, National Penn‘s total assets exceeded $5.0 billion for the first time ($5.11 billion) and total deposits were $3.62 billion. The allowance for loan and lease losses as of March 31, 2006 was $59.0 million, which represented 1.73% of total loans and leases outstanding of $3.4 billion.
Commenting on first quarter 2006, Wayne R. Weidner, National Penn Chairman and CEO, said “As we confront a difficult operating environment due to a very flat yield curve, we are pleased to report this continued growth in our profitability. Our overall balanced growth strategy remains solid.”
Glenn E. Moyer, National Penn President, said: “Competitive forces remain very strong. Fortunately, we enjoy strong demographic trends in our various market areas. This, coupled with our caring and focused employees, has allowed us to report further growth in our various financial services.”
__________
About National Penn Bancshares, Inc.:
National Penn Bancshares, Inc. is a $5.11 billion asset financial services company operating 78 offices in Pennsylvania through National Penn Bank as well as through its FirstService Bank, HomeTowne Heritage Bank, Nittany Bank, and The Peoples Bank of Oxford divisions. The Peoples Bank of Oxford Division also operates one community office in Cecil County, Maryland. National Penn’s investment management units, with combined client assets of approximately $2.12 billion, consist of National Penn Investors Trust Company, which provides trust and investment management services; National Penn Investment Services, which markets brokerage services provided by PrimeVest Financial Services, Inc.; National Penn Capital Advisors, Inc., which provides investment advisory services; and Vantage Investment Advisors, L. L. C., which provides fee-based investment management services. National Penn Bancshares also provides mortgage banking activities through National Penn Mortgage Company; insurance services through National Penn Insurance Agency, Inc.; and equipment leasing services through National Penn Leasing Company. National Penn Bancshares, Inc. common stock is traded on the Nasdaq Stock Market under the symbol “NPBC.” Additional information about the National Penn family is available on the company’s Web site at http://www.nationalpennbancshares.com.
_________
This press 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 this non-GAAP measure in its analysis of the company’s performance. This measure, annualized net income 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. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the financial results of National Penn, as it provides a method to assess management’s success in utilizing the company’s tangible capital. 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.
_________
This press release contains forward-looking statements concerning future events. Actual results could differ materially due to deteriorating economic conditions; increased competition; interest rate movements; market volatility in the securities markets; legislative or regulatory developments; merger-related synergies, savings and integration issues; technological changes; and other risks and uncertainties discussed in National Penn’s reports filed from time to time with the Securities and Exchange Commission, which are incorporated herein by reference. National Penn cautions you not to place undue reliance on these statements. National Penn undertakes no obligation to publicly release or update any of these statements.
