Exhibit 99.1
 | News Release |
National Penn Bancshares, Inc. Reports Third Quarter
2010 Results
Net income continues to improve
| · | Net income of $0.08 per share |
Continuing improvement in asset quality
| · | Classified loans, non-performing loans, and net loan charge-offs decline |
| · | Provision for loan and lease losses declines to $20 million |
| · | Loan loss reserve to non-performing loans increases to 163% |
BOYERTOWN, PA., October 28, 2010 -- National Penn Bancshares, Inc. (Nasdaq: NPBC) reported net income available to common shareholders of $10.3 million, or $0.08 per diluted common share, for the third quarter of 2010 compared to a net loss of $5.5 million, or ($0.04) per diluted common share, for the second quarter 2010. On an adjusted basis1, net income totaled $12.0 million, or $0.09 per diluted common share, which represents an increase of 22% or $2.2 million compared to $9.8 million, or $0.08 per common share, for the second quarter of 2010. Third quarter adjusted net income¹ excludes the impact of an after-tax unrealized fair value adjustment on National Penn’s traded trust preferred securities (Nasdaq: NPBCO).
“We believe this quarter’s results are consistent with our ongoing efforts to position National Penn for future growth based upon the strength of our balance sheet and improving earnings trends,” said Scott Fainor, president and CEO of National Penn. “Our pre-tax, pre-provision contribution remains strong, credit quality continues to improve, resulting in reduction to the loan loss provision in each quarter of 2010. We’re also excited about the previously announced $150 million investment by Warburg Pincus. This additional capital further strengthens the balance sheet and will accelerate our ability to repay TARP,” Fainor continued.
Loan quality trends continued to improve during the quarter, as classified loans declined by 2.7% and non-performing assets declined by 5.5%. These trends resulted in an increase to the loan loss reserve coverage to 163% from 155% of non-performing loans. Non-performing assets declined during the third quarter to $102.2 million from $108.2 million due primarily to a decrease in non-performing loans which decreased to $94.4 million at September 30, 2010 as compared to $99.2 million at June 30, 2010. The provision for loan and lease losses declined to $20.0 million in the third quarter from $25.0 million in the second quarter. The allowance for loan and lease losses totaled $153.5 million at September 30, 2010 or 2.72% of total loans and leases as compared to $154.0 million, or 2.68% at June 30, 2010.
Net interest income totaled $67.7 million for the third quarter of 2010 compared to $68.6 million for the second quarter. The net interest margin declined during the third quarter from 3.50% for the second quarter to 3.42%. The decrease in the net interest margin is a function of an increase in National Penn’s liquidity position resulting from soft loan demand in the markets which National Penn serves, as average loans declined by approximately $150 million despite loans to new and existing customers of approximately $215 million. Deposit levels were comparable to the second quarter, but deposit mix improved as certificates of deposits declined and transaction accounts increased. This shift in mix, in addition to a disciplined pricing strategy, mitigated the decline in net interest margin. The efficiency r atio2 for the quarter was 58.5% compared to 57.7% in the second quarter, reflective of a continuous focus on expense control.
1 Adjusted net income, as used throughout this release, is a non-GAAP financial measure. Please refer to the Statement Regarding Non-GAAP Financial Measures and the attached Financial Highlights and financial data tables for additional information on this measure and a reconciliation of this measure to net income available to common shareholders, the most comparable GAAP measure.
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National Penn’s Board of Directors approved a fourth quarter cash dividend of $0.01 per share, payable on November 17, 2010 to shareholders of record on November 6, 2010, consistent with the $0.01 per share paid in the previous quarter.
Related to the October 6, 2010 announcement whereby Warburg Pincus agreed to invest $150 million in newly-issued National Penn common stock, Warburg Pincus’ initial investment was received on October 20, 2010, resulting in the issuance of 10,462,810 common shares for cash proceeds of $63.3 million. The remainder of the investment will be made after receipt of regulatory approvals, which are anticipated in the fourth quarter of 2010.
In summarizing the quarter, Fainor said, “National Penn has and will continue to take actions which are focused on maximizing shareholder value. Despite the challenging economic environment, we are encouraged by the improving asset quality and profitability trends.”
Media Contact: Catharine S. Bower, Corporate Communications
(610) 369-6618 or catharine.bower@nationalpenn.com
Investor Contact: Michelle H. Debkowski, Investor Relations
(610) 369-6461 or michelle.debkowski@nationalpenn.com
__________
# # #
About National Penn Bancshares, Inc.:
National Penn Bancshares, Inc., with $9.2 billion in assets, is the fourth largest bank holding company based in Pennsylvania. 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 currently 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.; 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.
2 Efficiency ratio, as used throughout this release, is a non-GAAP financial measure. Please refer to the Statement Regarding Non-GAAP Financial Measures and the attached Financial Highlights and financial data tables for additional information on this measure and a calculation of this measure from GAAP measures.
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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 prope r understanding of the financial results of National Penn.
| · | Annualized return on average tangible common equity excludes the average balance of acquisition-related goodwill and intangible assets and the average balance of preferred equity in determining average tangible shareholders’ equity. Annualized return on average tangible equity provides a method to assess management’s success in utilizing the company’s tangible common capital. |
| · | Tangible book value excludes from total equity goodwill, intangible assets and preferred stock. Banking and financial institution regulators also exclude goodwill and intangible assets from shareholders’ equity when assessing the capital adequacy of a financial institution. Tangible book value provides a method to assess the level of tangible net assets on a per share basis. |
| · | Adjusted net income excludes the effects of certain after-tax gains and losses. Adjusted net income provides a method to assess earnings performance by excluding items that management believes are not comparative 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.
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National Penn’s business and operations, as well as its business and operations following the completion of transactions described in this release, 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 inability to meet the requirements of the memorandum of understanding or the individual minimum capital ratio requirements issued by its primary regulator, National Penn’s inability to successfully implement its “self-improvement plan”, National Penn’s ability to raise capital and maintain capital levels, variations in interest rates, deterioration in the credit quality of loans, the effect of credit risk exposure, declines in the value of National Penn’s assets and the effect of any resulting impairment charges, recent and ongoing changes to the state and federal regulatory schemes under which National Penn and other financial services companies operate (including the recently passed Dodd-Frank Act and regulations to be adopted to implement that Act), 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 f iscal year ended December 31, 2009, 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.
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| Financial Update for National Penn Bancshares (NPBC) for 9/30/2010 | ||||||||||||||||||||||||
| Exchange Listing Nasdaq "NPBC" | ||||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||||
| Unaudited, numbers in thousands except share and per share data | ||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||
| September 30, | June 30, | % Change | ||||||||||||||||||||||
| SUMMARY BALANCE SHEET | ||||||||||||||||||||||||
| Total assets | $ | 9,248,229 | $ | 9,222,127 | 0.28 | % | ||||||||||||||||||
| Investment securities and other securities | 2,255,265 | 2,217,597 | 1.70 | % | ||||||||||||||||||||
| Total loans and leases | 5,641,830 | 5,756,235 | -1.99 | % | ||||||||||||||||||||
| Deposits | 6,505,477 | 6,496,205 | 0.14 | % | ||||||||||||||||||||
| Borrowings | 1,605,411 | 1,604,223 | 0.07 | % | ||||||||||||||||||||
| Shareholders' equity | 1,092,018 | 1,076,888 | 1.40 | % | ||||||||||||||||||||
| Book value per common share | $ | 7.48 | $ | 7.37 | 1.49 | % | ||||||||||||||||||
| Three Months Ended | Nine Months Ended September 30, | |||||||||||||||||||||||
| 9/30/2010 | 6/30/2010 | % Change (a) | 2010 | 2009 | % Change (a) | |||||||||||||||||||
| EARNINGS | ||||||||||||||||||||||||
| Total interest income | $ | 96,360 | $ | 98,308 | -1.98 | % | $ | 293,505 | $ | 317,195 | -7.47 | % | ||||||||||||
| Total interest expense | 28,670 | 29,665 | -3.35 | % | 89,913 | 132,131 | -31.95 | % | ||||||||||||||||
| Net interest income | 67,690 | 68,643 | -1.39 | % | 203,592 | 185,064 | 10.01 | % | ||||||||||||||||
| Provision for loan and lease losses | 20,000 | 25,000 | -20.00 | % | 77,500 | 107,025 | -27.59 | % | ||||||||||||||||
| Net interest income after provision | ||||||||||||||||||||||||
| for loan and lease losses | 47,690 | 43,643 | 9.27 | % | 126,092 | 78,039 | 61.58 | % | ||||||||||||||||
| Net (losses) gains from fair value changes | (2,606 | ) | 1,543 | NM | (8,324 | ) | (8,096 | ) | -2.82 | % | ||||||||||||||
| Other non-interest income | 26,083 | 26,970 | -3.29 | % | 82,888 | (19,671 | ) | NM | ||||||||||||||||
| Non-interest expense | 57,965 | 66,563 | -12.92 | % | 182,185 | 171,497 | 6.23 | % | ||||||||||||||||
| Income (loss) before income taxes | 13,202 | 5,593 | NM | 18,471 | (121,225 | ) | NM | |||||||||||||||||
| Income tax expense (benefit) | 895 | 9,132 | -90.20 | % | 5,777 | (54,386 | ) | NM | ||||||||||||||||
| Net income (loss) | 12,307 | (3,539 | ) | NM | 12,694 | (66,839 | ) | NM | ||||||||||||||||
| Preferred dividends and accretion of preferred discount | (2,006 | ) | (2,005 | ) | -0.05 | % | (6,016 | ) | (6,245 | ) | 3.67 | % | ||||||||||||
| Net income (loss) available to common shareholders | $ | 10,301 | $ | (5,544 | ) | NM | $ | 6,678 | $ | (73,084 | ) | NM | ||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||||||
| Net interest margin | 3.42 | % | 3.50 | % | 3.45 | % | 3.14 | % | ||||||||||||||||
| Return on average assets | 0.53 | % | -0.15 | % | 0.18 | % | -0.93 | % | ||||||||||||||||
| Return on average total shareholders' equity | 4.50 | % | -1.32 | % | 1.57 | % | -7.39 | % | ||||||||||||||||
| Return on average tangible common equity (1) | 6.42 | % | -3.60 | % | 1.43 | % | -20.63 | % | ||||||||||||||||
| PER SHARE | ||||||||||||||||||||||||
| Basic earnings (loss) available to common shareholders | $ | 0.08 | $ | (0.04 | ) | $ | 0.05 | $ | (0.81 | ) | ||||||||||||||
| Diluted earnings (loss) available to common shareholders | 0.08 | (0.04 | ) | 0.05 | (0.81 | ) | ||||||||||||||||||
| Dividends per common share | 0.01 | 0.01 | 0.03 | 0.27 | ||||||||||||||||||||
| Average shares - basic | 126,102,037 | 126,045,667 | 126,008,098 | 89,760,302 | ||||||||||||||||||||
| Average shares - diluted | 126,255,249 | 126,045,667 | 126,179,126 | 89,760,302 | ||||||||||||||||||||
| (1) RECONCILIATION TABLES FOR NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||
| Return on average tangible common equity | ||||||||||||||||||||||||
| Return on average shareholders' equity | 4.50 | % | -1.32 | % | 1.57 | % | -7.39 | % | ||||||||||||||||
| Effect of preferred equity | -0.14 | % | -1.08 | % | -0.61 | % | -1.79 | % | ||||||||||||||||
| Effect of goodwill and intangibles | 2.06 | % | -1.20 | % | 0.47 | % | -11.45 | % | ||||||||||||||||
| Return on average tangible common equity | 6.42 | % | -3.60 | % | 1.43 | % | -20.63 | % | ||||||||||||||||
| Average tangible equity: | ||||||||||||||||||||||||
| Average shareholders' equity | $ | 1,084,724 | $ | 1,076,188 | $ | 1,078,690 | $ | 1,209,042 | ||||||||||||||||
| Average preferred equity | (148,248 | ) | (148,117 | ) | (148,119 | ) | (144,550 | ) | ||||||||||||||||
| Average goodwill and intangibles | (299,919 | ) | (309,851 | ) | (307,142 | ) | (590,736 | ) | ||||||||||||||||
| Average total tangible common equity | $ | 636,557 | $ | 618,220 | $ | 623,429 | $ | 473,756 | ||||||||||||||||
| Adjusted net income reconciliation | ||||||||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 10,301 | $ | (5,544 | ) | $ | 6,678 | $ | (73,084 | ) | ||||||||||||||
| After tax gain on pension plan curtailment | - | - | (2,643 | ) | - | |||||||||||||||||||
| After tax unrealized fair market value loss (gain) on | ||||||||||||||||||||||||
| NPB Capital Trust II Preferred Securities | 1,694 | (1,003 | ) | 5,411 | 5,262 | |||||||||||||||||||
| After tax loss on investment securities | - | - | - | 2,046 | ||||||||||||||||||||
| After tax other than temporary impairment | ||||||||||||||||||||||||
| charge on CDO investment | - | - | - | 64,757 | ||||||||||||||||||||
| After tax insurance proceeds | - | - | - | (2,618 | ) | |||||||||||||||||||
| After tax FDIC special assessment | - | - | - | 3,006 | ||||||||||||||||||||
| BOLI tax expense | - | 8,081 | 8,081 | - | ||||||||||||||||||||
| Goodwill impairment | - | 8,250 | 8,250 | - | ||||||||||||||||||||
| Adjusted net income available to common shareholders | $ | 11,995 | $ | 9,784 | $ | 25,777 | $ | (631 | ) | |||||||||||||||
| Earnings per share | ||||||||||||||||||||||||
| Net income (loss) available to common shareholders | $ | 0.08 | $ | (0.04 | ) | $ | 0.05 | $ | (0.81 | ) | ||||||||||||||
| After tax gain on pension plan curtailment | - | - | (0.02 | ) | - | |||||||||||||||||||
| After tax unrealized fair market value loss (gain) on | ||||||||||||||||||||||||
| NPB Capital Trust II Preferred Securities | 0.01 | (0.01 | ) | 0.04 | 0.06 | |||||||||||||||||||
| After tax (gain) loss on investment securities | - | - | - | 0.02 | ||||||||||||||||||||
| After tax other than temporary impairment | ||||||||||||||||||||||||
| charge on CDO investment | - | - | - | 0.72 | ||||||||||||||||||||
| After tax insurance proceeds | - | - | - | (0.03 | ) | |||||||||||||||||||
| After tax FDIC special assessment | - | - | - | 0.03 | ||||||||||||||||||||
| BOLI tax expense | - | 0.06 | 0.06 | - | ||||||||||||||||||||
| Goodwill impairment | - | 0.07 | 0.07 | - | ||||||||||||||||||||
| Adjusted net income available to common shareholders | $ | 0.09 | $ | 0.08 | $ | 0.20 | $ | (0.01 | ) | |||||||||||||||
| (a) Changes greater than 100% are expressed as not meaningful or "NM" | ||||||||||||||||||||||||
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| Financial Update for National Penn Bancshares (NPBC) for 9/30/2010 | ||||||||||||||||||||
| Page 1 of 6 | ||||||||||||||||||||
| Unaudited, numbers in thousands except share and per share data | As of | |||||||||||||||||||
| 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | ||||||||||||||||
| BALANCE SHEET - ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 103,279 | $ | 106,059 | $ | 103,666 | $ | 106,722 | $ | 110,521 | ||||||||||
| Interest-earning deposits with banks | 609,733 | 496,282 | 239,757 | 496,535 | 289,670 | |||||||||||||||
| Total cash and cash equivalents | 713,012 | 602,341 | 343,423 | 603,257 | 400,191 | |||||||||||||||
| Investment securities available for sale, at fair value | 1,603,849 | 1,554,349 | 1,569,062 | 1,499,667 | 1,557,072 | |||||||||||||||
| Investment securities held to maturity | 567,740 | 579,572 | 591,315 | 601,923 | 612,214 | |||||||||||||||
| Other securities | 83,676 | 83,676 | 83,676 | 78,951 | 78,951 | |||||||||||||||
| Loans and leases held for sale | 30,081 | 15,944 | 6,561 | 18,028 | 9,279 | |||||||||||||||
| Loans and leases | 5,611,749 | 5,740,291 | 5,908,658 | 6,006,472 | 6,190,405 | |||||||||||||||
| Allowance for loan and lease losses | (153,475 | ) | (154,039 | ) | (153,850 | ) | (146,271 | ) | (125,490 | ) | ||||||||||
| Loans and leases, net | 5,458,274 | 5,586,252 | 5,754,808 | 5,860,201 | 6,064,915 | |||||||||||||||
| Premises and equipment, net | 108,372 | 109,668 | 111,564 | 112,744 | 113,712 | |||||||||||||||
| Premises held for sale | 124 | 124 | 812 | 812 | 812 | |||||||||||||||
| Accrued interest receivable | 36,127 | 35,745 | 37,175 | 36,565 | 38,544 | |||||||||||||||
| Bank owned life insurance, redeemed but not settled | 64,387 | 64,387 | - | - | - | |||||||||||||||
| Bank owned life insurance | 136,093 | 134,925 | 198,392 | 198,131 | 197,132 | |||||||||||||||
| Other real estate owned and other repossessed assets | 7,818 | 8,974 | 2,386 | 4,208 | 826 | |||||||||||||||
| Goodwill | 273,468 | 273,468 | 281,718 | 281,623 | 555,789 | |||||||||||||||
| Other intangible assets, net | 25,587 | 27,360 | 29,130 | 30,943 | 32,854 | |||||||||||||||
| Unconsolidated investments under the equity method | 12,428 | 12,736 | 12,842 | 12,821 | 11,718 | |||||||||||||||
| Other assets | 127,193 | 132,606 | 148,897 | 144,036 | 66,301 | |||||||||||||||
| TOTAL ASSETS | $ | 9,248,229 | $ | 9,222,127 | $ | 9,171,761 | $ | 9,483,910 | $ | 9,740,310 | ||||||||||
| BALANCE SHEET - LIABILITIES | ||||||||||||||||||||
| Non-interest bearing deposits | $ | 815,193 | $ | 834,297 | $ | 800,467 | $ | 753,650 | $ | 718,459 | ||||||||||
| Interest bearing deposits | 5,690,284 | 5,661,908 | 5,610,897 | 5,985,202 | 6,080,203 | |||||||||||||||
| Total deposits | 6,505,477 | 6,496,205 | 6,411,364 | 6,738,852 | 6,798,662 | |||||||||||||||
| Securities sold under repurchase agreements and federal funds purchased | 752,428 | 752,314 | 758,828 | 737,323 | 628,711 | |||||||||||||||
| Short-term borrowings | 6,974 | 7,000 | 7,165 | 6,900 | 7,200 | |||||||||||||||
| Federal Home Loan Bank advances | 705,278 | 706,784 | 743,781 | 756,803 | 778,906 | |||||||||||||||
| Subordinated debentures | 140,731 | 138,125 | 139,668 | 132,407 | 136,076 | |||||||||||||||
| Accrued interest payable and other liabilities | 45,323 | 44,811 | 40,167 | 42,157 | 30,649 | |||||||||||||||
| TOTAL LIABILITIES | 8,156,211 | 8,145,239 | 8,100,973 | 8,414,442 | 8,380,204 | |||||||||||||||
| BALANCE SHEET - SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Preferred stock | 148,310 | 148,180 | 148,050 | 147,920 | 144,738 | |||||||||||||||
| Common stock | 1,227,639 | 1,227,354 | 1,226,481 | 1,225,635 | 1,227,032 | |||||||||||||||
| Retained deficit | (299,209 | ) | (308,252 | ) | (301,459 | ) | (302,120 | ) | (16,908 | ) | ||||||||||
| Accumulated other comprehensive income/(loss) | 15,278 | 9,606 | (2,284 | ) | (1,967 | ) | 5,244 | |||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 1,092,018 | 1,076,888 | 1,070,788 | 1,069,468 | 1,360,106 | |||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 9,248,229 | $ | 9,222,127 | $ | 9,171,761 | $ | 9,483,910 | $ | 9,740,310 | ||||||||||
| COMMON SHARE AND PER SHARE DATA | ||||||||||||||||||||
| Book Value | $ | 7.48 | $ | 7.37 | $ | 7.32 | $ | 7.33 | $ | 9.67 | ||||||||||
| Tangible Book Value (2) | $ | 5.11 | $ | 4.98 | $ | 4.86 | $ | 4.84 | $ | 4.99 | ||||||||||
| Dividends | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.05 | ||||||||||
| Shares Outstanding (end of period, net of treasury) | 126,115,073 | 126,064,075 | 126,004,409 | 125,713,668 | 125,658,738 | |||||||||||||||
| (2) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||
| Total shareholders' equity | $ | 1,092,018 | $ | 1,076,888 | $ | 1,070,788 | $ | 1,069,468 | $ | 1,360,106 | ||||||||||
| Total preferred shareholders' equity | (148,310 | ) | (148,180 | ) | (148,050 | ) | (147,920 | ) | (144,738 | ) | ||||||||||
| Goodwill and intangibles | (299,055 | ) | (300,828 | ) | (310,848 | ) | (312,566 | ) | (588,643 | ) | ||||||||||
| Tangible common equity | $ | 644,653 | $ | 627,880 | $ | 611,890 | $ | 608,982 | $ | 626,725 | ||||||||||
| Common shares outstanding | 126,115,073 | 126,064,075 | 126,004,409 | 125,713,668 | 125,658,738 | |||||||||||||||
| Tangible book value per share | $ | 5.11 | $ | 4.98 | $ | 4.86 | $ | 4.84 | $ | 4.99 | ||||||||||
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| Financial Update for National Penn Bancshares (NPBC) for 9/30/2010 | ||||||||||||||||||||||||||||
| Page 2 of 6 | ||||||||||||||||||||||||||||
| Unaudited, numbers in thousands except share and per share data | For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
| 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | ||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Loans and leases, including fees | $ | 76,227 | $ | 77,830 | $ | 78,654 | $ | 82,927 | $ | 84,218 | $ | 232,711 | $ | 253,860 | ||||||||||||||
| Investment securities | ||||||||||||||||||||||||||||
| Taxable | 11,157 | 11,457 | 11,098 | 11,871 | 11,896 | 33,712 | 35,206 | |||||||||||||||||||||
| Tax-exempt | 8,697 | 8,803 | 8,838 | 8,946 | 9,105 | 26,338 | 27,703 | |||||||||||||||||||||
| Federal funds sold and deposits in banks | 279 | 218 | 247 | 204 | 166 | 744 | 426 | |||||||||||||||||||||
| Total interest income | 96,360 | 98,308 | 98,837 | 103,948 | 105,385 | 293,505 | 317,195 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Deposits | 15,773 | 16,464 | 18,281 | 22,844 | 26,069 | 50,518 | 88,091 | |||||||||||||||||||||
| Securities sold under repurchase agreements and federal funds purchased | 2,757 | 2,808 | 2,874 | 3,049 | 2,965 | 8,439 | 9,617 | |||||||||||||||||||||
| Long-term borrowings | 10,140 | 10,393 | 10,423 | 10,610 | 11,008 | 30,956 | 34,423 | |||||||||||||||||||||
| Total interest expense | 28,670 | 29,665 | 31,578 | 36,503 | 40,042 | 89,913 | 132,131 | |||||||||||||||||||||
| Net interest income | 67,690 | 68,643 | 67,259 | 67,445 | 65,343 | 203,592 | 185,064 | |||||||||||||||||||||
| Provision for loan and lease losses | 20,000 | 25,000 | 32,500 | 47,000 | 52,000 | 77,500 | 107,025 | |||||||||||||||||||||
| Net interest income after provision for loan and lease losses | 47,690 | 43,643 | 34,759 | 20,445 | 13,343 | 126,092 | 78,039 | |||||||||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||||||||||
| Wealth management income | 6,997 | 7,238 | 7,101 | 7,406 | 7,670 | 21,336 | 21,517 | |||||||||||||||||||||
| Service charges on deposit accounts | 5,419 | 5,446 | 5,341 | 6,141 | 6,247 | 16,206 | 18,118 | |||||||||||||||||||||
| Insurance commissions and fees | 3,499 | 3,639 | 3,771 | 3,970 | 3,771 | 10,909 | 11,744 | |||||||||||||||||||||
| Cash management and electronic banking fees | 4,548 | 4,614 | 4,158 | 4,237 | 4,041 | 13,320 | 11,684 | |||||||||||||||||||||
| Mortgage banking income | 2,424 | 1,231 | 1,153 | 1,337 | 1,884 | 4,808 | 7,138 | |||||||||||||||||||||
| Bank owned life insurance income | 1,168 | 1,280 | 1,983 | 1,441 | 1,131 | 4,431 | 3,478 | |||||||||||||||||||||
| Equity in undistributed net earnings of unconsolidated investments | (41 | ) | 537 | 163 | 1,706 | (525 | ) | 659 | 880 | |||||||||||||||||||
| Gain on pension plan curtailment | - | - | 4,066 | - | - | 4,066 | - | |||||||||||||||||||||
| Other operating income | 2,381 | 2,771 | 2,733 | (1,783 | ) | 3,315 | 7,885 | 8,542 | ||||||||||||||||||||
| Net (losses) gains from fair value changes | (2,606 | ) | 1,543 | (7,261 | ) | 3,669 | (6,249 | ) | (8,324 | ) | (8,096 | ) | ||||||||||||||||
| Net (losses) gains on sales of investment securities | - | 214 | - | 290 | (863 | ) | 214 | (3,147 | ) | |||||||||||||||||||
| Impairment losses on investment securities: | ||||||||||||||||||||||||||||
| Impairment losses on investment securities | (312 | ) | - | (634 | ) | (2,166 | ) | (84,704 | ) | (946 | ) | (125,646 | ) | |||||||||||||||
Non credit-related losses on securities not expected to be sold recognized in other comprehensive loss before tax | - | - | - | - | - | - | 26,021 | |||||||||||||||||||||
| Net impairment losses on investment securities | (312 | ) | - | (634 | ) | (2,166 | ) | (84,704 | ) | (946 | ) | (99,625 | ) | |||||||||||||||
| Total non-interest income (loss) | 23,477 | 28,513 | 22,574 | 26,248 | (64,282 | ) | 74,564 | (27,767 | ) | |||||||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries, wages and employee benefits | 31,544 | 30,999 | 29,429 | 30,864 | 30,505 | 91,972 | 94,771 | |||||||||||||||||||||
| Net premises and equipment | 7,256 | 7,209 | 7,998 | 7,962 | 8,104 | 22,463 | 24,037 | |||||||||||||||||||||
| Advertising and marketing expenses | 982 | 1,762 | 1,609 | 2,442 | 1,246 | 4,353 | 4,994 | |||||||||||||||||||||
| Fraud recovery | - | - | - | - | (4,028 | ) | - | (4,028 | ) | |||||||||||||||||||
| Goodwill impairment | - | 8,250 | - | 275,000 | - | 8,250 | - | |||||||||||||||||||||
| FDIC insurance | 3,641 | 4,056 | 4,097 | 3,910 | 2,602 | 11,794 | 11,005 | |||||||||||||||||||||
| Other operating expenses | 14,542 | 14,287 | 14,524 | 16,941 | 13,723 | 43,353 | 40,718 | |||||||||||||||||||||
| Total non-interest expense | 57,965 | 66,563 | 57,657 | 337,119 | 52,152 | 182,185 | 171,497 | |||||||||||||||||||||
| Income (loss) before income taxes | 13,202 | 5,593 | (324 | ) | (290,426 | ) | (103,091 | ) | 18,471 | (121,225 | ) | |||||||||||||||||
| Income tax expense (benefit) | 895 | 9,132 | (4,250 | ) | (9,227 | ) | (40,000 | ) | 5,777 | (54,386 | ) | |||||||||||||||||
| NET INCOME (LOSS) | 12,307 | (3,539 | ) | 3,926 | (281,199 | ) | (63,091 | ) | 12,694 | (66,839 | ) | |||||||||||||||||
| Preferred dividends and accretion of preferred discount | (2,006 | ) | (2,005 | ) | (2,005 | ) | (2,095 | ) | (2,096 | ) | (6,016 | ) | (6,245 | ) | ||||||||||||||
| NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ | 10,301 | $ | (5,544 | ) | $ | 1,921 | $ | (283,294 | ) | $ | (65,187 | ) | $ | 6,678 | $ | (73,084 | ) | ||||||||||
| PER SHARE OF COMMON STOCK | ||||||||||||||||||||||||||||
| Basic earnings (loss) available to common shareholders | $ | 0.08 | $ | (0.04 | ) | $ | 0.02 | $ | (2.25 | ) | $ | (0.65 | ) | $ | 0.05 | $ | (0.81 | ) | ||||||||||
| Diluted earnings (loss) available to common shareholders | $ | 0.08 | $ | (0.04 | ) | $ | 0.02 | $ | (2.25 | ) | $ | (0.65 | ) | $ | 0.05 | $ | (0.81 | ) | ||||||||||
| Average Shares Basic | 126,102,037 | 126,045,667 | 125,875,061 | 125,697,822 | 100,064,355 | 126,008,098 | 89,760,302 | |||||||||||||||||||||
| Average Shares Diluted | 126,255,249 | 126,045,667 | 126,039,112 | 125,697,822 | 100,064,355 | 126,179,126 | 89,760,302 | |||||||||||||||||||||
SUPPLEMENTAL DATA (annualized, average) | ||||||||||||||||||||||||||||
| Return on Assets | 0.53 | % | -0.15 | % | 0.17 | % | -11.41 | % | -2.57 | % | 0.18 | % | -0.93 | % | ||||||||||||||
| Return on Total Equity | 4.50 | % | -1.32 | % | 1.48 | % | -82.16 | % | -20.01 | % | 1.57 | % | -7.39 | % | ||||||||||||||
| Return on Common Equity | 4.36 | % | -2.40 | % | 0.84 | % | -92.66 | % | -23.38 | % | 0.96 | % | -9.18 | % | ||||||||||||||
| Return on Tangible Equity (1) | 6.42 | % | -3.60 | % | 1.27 | % | -178.82 | % | -50.01 | % | 1.43 | % | -20.63 | % | ||||||||||||||
| Efficiency Ratio (3) | 58.51 | % | 57.72 | % | 58.54 | % | 58.79 | % | 57.03 | % | 58.25 | % | 59.90 | % | ||||||||||||||
| (3) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||
| Efficiency Ratio Calculation | ||||||||||||||||||||||||||||
| Non-interest expense | $ | 57,965 | $ | 66,563 | $ | 57,657 | $ | 337,119 | $ | 52,152 | $ | 182,185 | $ | 171,497 | ||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Fraud recovery | - | - | - | - | (4,028 | ) | - | (4,028 | ) | |||||||||||||||||||
| Goodwill impairment | - | 8,250 | - | 275,000 | - | 8,250 | - | |||||||||||||||||||||
| FDIC Special Assessment | - | - | - | - | - | - | 4,625 | |||||||||||||||||||||
| SERP accrual | - | - | - | 2,000 | - | - | - | |||||||||||||||||||||
| Operating expenses | $ | 57,965 | $ | 58,313 | $ | 57,657 | $ | 60,119 | $ | 56,180 | $ | 173,935 | $ | 170,900 | ||||||||||||||
| Net interest income (taxable equivalent) | $ | 72,985 | $ | 74,055 | $ | 72,727 | $ | 73,007 | $ | 70,972 | $ | 219,766 | $ | 202,187 | ||||||||||||||
| Non-interest income (loss) | 23,477 | 28,513 | 22,574 | 26,248 | (64,282 | ) | 74,564 | (27,767 | ) | |||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Gain on pension plan curtailment | - | - | 4,066 | - | - | 4,066 | - | |||||||||||||||||||||
| Securities loss / impairment / CDO loss | - | - | - | (1,876 | ) | (85,567 | ) | - | (102,772 | ) | ||||||||||||||||||
| Net (losses) gains from fair value changes | (2,606 | ) | 1,543 | (7,261 | ) | 3,669 | (6,249 | ) | (8,324 | ) | (8,096 | ) | ||||||||||||||||
| Loss on sale of SNC loans | - | - | - | (6,032 | ) | - | - | - | ||||||||||||||||||||
| Gain on sale of wealth unit | - | - | - | 1,226 | - | - | - | |||||||||||||||||||||
| Adjusted revenue | $ | 99,068 | $ | 101,025 | $ | 98,496 | $ | 102,268 | $ | 98,506 | $ | 298,588 | $ | 285,288 | ||||||||||||||
| Efficiency Ratio | 58.51 | % | 57.72 | % | 58.54 | % | 58.79 | % | 57.03 | % | 58.25 | % | 59.90 | % | ||||||||||||||
11
| Financial Update for National Penn Bancshares (NPBC) for 9/30/2010 | ||||||||||||||||||||||||||||
| Page 3 of 6 | ||||||||||||||||||||||||||||
| Unaudited, numbers in thousands except share and per share data | ||||||||||||||||||||||||||||
| As of and for the Quarter Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| CHARGE-OFFS | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | |||||||||||||||||||||
| Loan Charge-offs | $ | 23,306 | $ | 27,316 | $ | 27,482 | $ | 28,524 | $ | 29,202 | $ | 78,104 | $ | 73,005 | ||||||||||||||
| Recoveries on Loans | (2,742 | ) | (2,505 | ) | (2,561 | ) | (2,305 | ) | (4,379 | ) | (7,808 | ) | (7,464 | ) | ||||||||||||||
| Net Loan Charge-offs | $ | 20,564 | $ | 24,811 | $ | 24,921 | $ | 26,219 | $ | 24,823 | $ | 70,296 | $ | 65,541 | ||||||||||||||
| Net Loan Charge-offs to Average Loans (annualized) | 1.43 | % | 1.70 | % | 1.69 | % | 1.69 | % | 1.57 | % | 1.61 | % | 1.38 | % | ||||||||||||||
| NET CHARGE OFF ASSETS-DETAIL | ||||||||||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | (2,166 | ) | $ | (8,608 | ) | $ | (2,162 | ) | $ | (11,529 | ) | $ | (11,819 | ) | $ | (12,936 | ) | $ | (33,207 | ) | |||||||
| Real Estate-Permanent | (1,655 | ) | (1,510 | ) | (359 | ) | (8,522 | ) | (2,485 | ) | (3,524 | ) | (5,508 | ) | ||||||||||||||
| Real Estate-Construction | (12,899 | ) | (6,327 | ) | (18,427 | ) | (3,493 | ) | (7,835 | ) | (37,653 | ) | (14,107 | ) | ||||||||||||||
| Leases | (1 | ) | (5 | ) | (98 | ) | (38 | ) | 19 | (104 | ) | (343 | ) | |||||||||||||||
| Residential Mortgages | (1,467 | ) | (5,368 | ) | (2,700 | ) | (1,089 | ) | (860 | ) | (9,535 | ) | (2,403 | ) | ||||||||||||||
| Consumer | (2,169 | ) | (2,902 | ) | (1,086 | ) | (1,322 | ) | (1,688 | ) | (6,157 | ) | (9,556 | ) | ||||||||||||||
| Overdraft | (207 | ) | (91 | ) | (89 | ) | (226 | ) | (155 | ) | (387 | ) | (417 | ) | ||||||||||||||
| Net Loans Charged-off | $ | (20,564 | ) | $ | (24,811 | ) | $ | (24,921 | ) | $ | (26,219 | ) | $ | (24,823 | ) | $ | (70,296 | ) | $ | (65,541 | ) | |||||||
| As of | ||||||||||||||||||||||||||||
| ASSET QUALITY AND OTHER DATA | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||||||||||
| Nonaccrual Loans | $ | 83,650 | $ | 88,875 | $ | 111,064 | $ | 122,516 | $ | 116,418 | ||||||||||||||||||
| Restructured Loans | 8,544 | 7,324 | 6,653 | 576 | 589 | |||||||||||||||||||||||
| Loans 90+ Days Past Due & Still Accruing | 2,237 | 2,997 | 2,651 | 2,694 | 3,113 | |||||||||||||||||||||||
| Total Non-performing Loans | $ | 94,431 | $ | 99,196 | $ | 120,368 | $ | 125,786 | $ | 120,120 | ||||||||||||||||||
| Other Real Estate Owned & Repossessed Assets | 7,818 | 8,974 | 2,386 | 4,208 | 826 | |||||||||||||||||||||||
| Total Non-performing Assets | $ | 102,249 | $ | 108,170 | $ | 122,754 | $ | 129,994 | $ | 120,946 | ||||||||||||||||||
| Allowance for Loan and Lease Losses | $ | 153,475 | $ | 154,039 | $ | 153,850 | $ | 146,271 | $ | 125,490 | ||||||||||||||||||
| Allowance for Loan and Lease Losses/Non-Performing Loans | 162.5 | % | 155.3 | % | 127.8 | % | 116.3 | % | 104.5 | % | ||||||||||||||||||
| Allowance for Loan and Lease Losses/Non-Performing Assets | 150.1 | % | 142.4 | % | 125.3 | % | 112.5 | % | 103.8 | % | ||||||||||||||||||
| Provision/Charge-Offs, net | 97.3 | % | 100.8 | % | 130.4 | % | 179.3 | % | 209.5 | % | ||||||||||||||||||
| Classified Loans | $ | 498,631 | $ | 512,628 | $ | 532,048 | $ | 501,485 | $ | 483,163 | ||||||||||||||||||
| Classified Loans/Total Loans | 8.84 | % | 8.91 | % | 8.99 | % | 8.32 | % | 7.79 | % | ||||||||||||||||||
| Delinquent Loans | $ | 33,676 | $ | 33,171 | $ | 31,891 | $ | 28,158 | $ | 33,998 | ||||||||||||||||||
| Delinquent Loans/Total Loans | 0.60 | % | 0.58 | % | 0.54 | % | 0.47 | % | 0.55 | % | ||||||||||||||||||
| NON PERFORMING ASSETS-DETAIL | ||||||||||||||||||||||||||||
| Commercial, Financial and Agricultural | $ | 29,227 | $ | 33,712 | $ | 38,455 | $ | 40,618 | $ | 42,226 | ||||||||||||||||||
| Real Estate-Permanent | 21,769 | 18,958 | 14,823 | 19,277 | 15,255 | |||||||||||||||||||||||
| Real Estate-Construction | 30,522 | 35,728 | 40,622 | 46,832 | 43,497 | |||||||||||||||||||||||
| Leases | 651 | 468 | 580 | 396 | 461 | |||||||||||||||||||||||
| Residential Mortgages | 13,396 | 11,422 | 18,368 | 12,800 | 8,934 | |||||||||||||||||||||||
| Consumer | 3,853 | 4,227 | 6,691 | 6,842 | 6,796 | |||||||||||||||||||||||
| Loans Past Due 90+Days | 2,237 | 2,997 | 2,651 | 2,694 | 3,113 | |||||||||||||||||||||||
| Total Other Repossessed Assets | 594 | 658 | 564 | 535 | 664 | |||||||||||||||||||||||
| Total Non-performing Assets + Loans 90 Days Past Due | $ | 102,249 | $ | 108,170 | $ | 122,754 | $ | 129,994 | $ | 120,946 | ||||||||||||||||||
| As of | ||||||||||||||||||||||||||||
| REGULATORY CAPITAL DATA | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||||||||||
| Tier 1 Capital | $ | 850,185 | $ | 833,526 | $ | 810,119 | $ | 809,218 | $ | 827,685 | ||||||||||||||||||
| Tier 1 Leverage Ratio | 9.67 | % | 9.41 | % | 9.06 | % | 8.88 | % | 9.00 | % | ||||||||||||||||||
| Tier 1 Ratio (%) | 14.00 | % | 13.64 | % | 12.88 | % | 12.66 | % | 12.46 | % | ||||||||||||||||||
| Total Capital | $ | 926,499 | $ | 910,857 | $ | 889,675 | $ | 889,966 | $ | 911,234 | ||||||||||||||||||
| Total Capital Ratio (%) | 15.26 | % | 14.91 | % | 14.15 | % | 13.92 | % | 13.72 | % | ||||||||||||||||||
| Total Risk-Weighted Assets | $ | 6,070,678 | $ | 6,109,763 | $ | 6,289,618 | $ | 6,394,468 | $ | 6,642,041 | ||||||||||||||||||
12
| Financial Update for National Penn Bancshares (NPBC) for 9/30/2010 | ||||||||||||||||||||
| Page 4 of 6 | ||||||||||||||||||||
| Unaudited, numbers in thousands except share and per share data | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| PERIOD END BALANCES: | 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | |||||||||||||||
| Earning Assets / Liabilities | ||||||||||||||||||||
| Loan Breakdown: (Regulatory) | ||||||||||||||||||||
| Commercial/Industrial | $ | 878,790 | $ | 925,661 | $ | 972,132 | $ | 985,357 | $ | 1,098,501 | ||||||||||
| Commercial Real Estate (4) | 1,810,442 | 1,804,073 | 1,852,838 | 1,833,069 | 1,787,829 | |||||||||||||||
| Residential Mortgage | 1,381,117 | 1,412,218 | 1,398,640 | 1,430,027 | 1,443,030 | |||||||||||||||
| Real Estate Construction and Land Development | 375,341 | 404,292 | 463,833 | 534,315 | 637,231 | |||||||||||||||
| Home Equity | 792,496 | 800,378 | 800,394 | 806,556 | 804,415 | |||||||||||||||
| Consumer | 244,878 | 247,113 | 251,611 | 252,028 | 254,909 | |||||||||||||||
| Other Loans | 158,766 | 162,500 | 175,771 | 183,148 | 173,769 | |||||||||||||||
| Total Loans | 5,641,830 | 5,756,235 | 5,915,219 | 6,024,500 | 6,199,684 | |||||||||||||||
| Allowance for Loan and Lease Losses/Total Loans and Leases | 2.72 | % | 2.68 | % | 2.60 | % | 2.43 | % | 2.02 | % | ||||||||||
| Investment Securities and Other Securities | 2,255,265 | 2,217,597 | 2,244,053 | 2,180,541 | 2,248,237 | |||||||||||||||
| Other Earning Assets | 609,733 | 496,282 | 239,757 | 496,535 | 289,670 | |||||||||||||||
| Total Earning Assets (net of loan loss reserve) | $ | 8,353,353 | $ | 8,316,075 | $ | 8,245,178 | $ | 8,555,305 | $ | 8,612,101 | ||||||||||
| (4) Includes owner occupied | ||||||||||||||||||||
| Loan Breakdown: (Internal) | ||||||||||||||||||||
| Commercial Real Estate | ||||||||||||||||||||
| Non Owner Occupied | ||||||||||||||||||||
| - Permanent | $ | 855,777 | $ | 868,405 | $ | 865,003 | $ | 831,127 | $ | 836,718 | ||||||||||
| - Construction / Development | 312,086 | 335,799 | 365,641 | 406,331 | 443,775 | |||||||||||||||
| Commercial & Industrial | ||||||||||||||||||||
| Business Purpose, Real Estate secured | 987,551 | 991,075 | 1,024,362 | 1,052,096 | 1,046,236 | |||||||||||||||
| Business Purpose, not secured by Real Estate | 953,645 | 1,005,189 | 1,075,058 | 1,091,578 | 1,202,023 | |||||||||||||||
| Owner Occupied Commercial Real Estate | ||||||||||||||||||||
| - Permanent | 556,738 | 556,201 | 570,659 | 589,455 | 595,849 | |||||||||||||||
| - Construction / Development | 38,902 | 38,858 | 42,122 | 52,710 | 53,976 | |||||||||||||||
| Leasing | 12,230 | 13,810 | 15,942 | 17,304 | 18,351 | |||||||||||||||
| Residential Mortgage (personal purpose) | ||||||||||||||||||||
| Permanent | 795,420 | 813,042 | 822,373 | 833,721 | 839,459 | |||||||||||||||
| Construction | 9,966 | 10,925 | 10,486 | 12,275 | 14,037 | |||||||||||||||
| Retail | ||||||||||||||||||||
| Home Equity Loans and Direct Installment Loans | 446,866 | 458,803 | 466,611 | 487,793 | 510,178 | |||||||||||||||
| Home Equity Lines of Credit | 332,074 | 317,469 | 303,246 | 297,652 | 280,813 | |||||||||||||||
| Private Banking Credit Lines | 159,991 | 163,526 | 167,954 | 171,582 | 172,113 | |||||||||||||||
| Indirect Vehicle Loans | 133,297 | 136,177 | 138,536 | 141,829 | 144,158 | |||||||||||||||
| Other | 47,287 | 46,956 | 47,226 | 39,047 | 41,998 | |||||||||||||||
| Total Loans | $ | 5,641,830 | $ | 5,756,235 | $ | 5,915,219 | $ | 6,024,500 | $ | 6,199,684 | ||||||||||
| Deposit Breakdown: | ||||||||||||||||||||
| Savings | $ | 430,806 | $ | 455,061 | $ | 433,669 | $ | 414,886 | $ | 395,965 | ||||||||||
| NOW Accounts | 1,294,582 | 1,130,026 | 1,114,539 | 1,284,143 | 1,221,170 | |||||||||||||||
| Money Market Accounts | 1,714,771 | 1,763,631 | 1,724,852 | 1,675,369 | 1,700,338 | |||||||||||||||
| CDs $100k or less | 1,512,573 | 1,543,947 | 1,565,238 | 1,607,148 | 1,630,528 | |||||||||||||||
| CDs greater than $100k | 737,552 | 769,243 | 772,599 | 1,003,656 | 1,132,202 | |||||||||||||||
| Total Interest Bearing Deposits | 5,690,284 | 5,661,908 | 5,610,897 | 5,985,202 | 6,080,203 | |||||||||||||||
| Borrowings | 1,605,411 | 1,604,223 | 1,649,442 | 1,633,433 | 1,550,893 | |||||||||||||||
| Total Interest Bearing Liabilities | $ | 7,295,695 | $ | 7,266,131 | $ | 7,260,339 | $ | 7,618,635 | $ | 7,631,096 | ||||||||||
13
| Financial Update for National Penn Bancshares (NPBC) for 9/30/2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Page 5 of 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited, numbers in thousands except share and per share data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly, as of | Nine Months, as of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 9/30/2010 | 9/30/2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | |||||||||||||||||||||||||||||||||||||||||||
| Total Loans (net of unearned) | $ | 5,703,685 | 5.35 | % | $ | 5,856,738 | 5.39 | % | $ | 5,985,554 | 5.39 | % | $ | 6,137,362 | 5.42 | % | $ | 6,280,351 | 5.38 | % | $ | 5,847,626 | 5.38 | % | $ | 6,337,201 | 5.41 | % | ||||||||||||||||||||||||||||
| Investment Securities | 2,227,732 | 4.34 | % | 2,248,560 | 4.43 | % | 2,184,886 | 4.56 | % | 2,244,878 | 4.51 | % | 2,167,261 | 4.72 | % | 2,220,549 | 4.44 | % | 2,029,770 | 5.10 | % | |||||||||||||||||||||||||||||||||||
| Interest Earning Deposits and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fed Funds Sold | 535,446 | 0.21 | % | 388,434 | 0.23 | % | 411,100 | 0.24 | % | 410,679 | 0.22 | % | 243,596 | 0.25 | % | 445,449 | 0.22 | % | 245,325 | 0.23 | % | |||||||||||||||||||||||||||||||||||
| Total Earning Assets | 8,466,862 | 4.76 | % | 8,493,732 | 4.90 | % | 8,581,540 | 4.93 | % | 8,792,919 | 4.94 | % | 8,691,208 | 5.07 | % | 8,513,624 | 4.86 | % | 8,612,296 | 5.19 | % | |||||||||||||||||||||||||||||||||||
| Total Earning Assets (net of loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| loss reserve) | 8,303,512 | 4.86 | % | 8,326,752 | 5.00 | % | 8,420,661 | 5.02 | % | 8,661,393 | 5.02 | % | 8,582,628 | 5.13 | % | 8,349,879 | 4.96 | % | 8,515,967 | 5.25 | % | |||||||||||||||||||||||||||||||||||
| Total Assets | 9,197,254 | 4.39 | % | 9,228,295 | 4.51 | % | 9,337,334 | 4.53 | % | 9,775,612 | 4.45 | % | 9,724,872 | 4.53 | % | 9,253,781 | 4.47 | % | 9,659,568 | 4.63 | % | |||||||||||||||||||||||||||||||||||
| Savings | 445,327 | 0.27 | % | 446,347 | 0.29 | % | 421,503 | 0.33 | % | 405,132 | 0.33 | % | 396,626 | 0.28 | % | 438,715 | 0.30 | % | 384,938 | 0.30 | % | |||||||||||||||||||||||||||||||||||
| NOW Accounts | 1,203,831 | 0.28 | % | 1,156,191 | 0.35 | % | 1,170,886 | 0.43 | % | 1,212,744 | 0.56 | % | 1,162,730 | 0.58 | % | 1,171,636 | 0.35 | % | 1,083,061 | 0.74 | % | |||||||||||||||||||||||||||||||||||
| Money Market Accounts | 1,728,823 | 0.82 | % | 1,726,437 | 0.87 | % | 1,710,084 | 0.97 | % | 1,704,247 | 1.11 | % | 1,695,479 | 1.10 | % | 1,726,401 | 0.88 | % | 1,692,372 | 1.32 | % | |||||||||||||||||||||||||||||||||||
| CDs | 2,279,366 | 1.92 | % | 2,322,483 | 1.97 | % | 2,522,020 | 2.03 | % | 2,730,493 | 2.34 | % | 2,822,447 | 2.72 | % | 2,373,734 | 1.98 | % | 2,827,321 | 3.05 | % | |||||||||||||||||||||||||||||||||||
| Total Interest Bearing Deposits | 5,657,347 | 1.11 | % | 5,651,458 | 1.17 | % | 5,824,493 | 1.27 | % | 6,052,616 | 1.50 | % | 6,077,282 | 1.70 | % | 5,710,486 | 1.18 | % | 5,987,692 | 1.97 | % | |||||||||||||||||||||||||||||||||||
| Non-Interest Bearing Deposits | 831,484 | 831,119 | 767,398 | 741,254 | 737,745 | 810,235 | 727,708 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total Deposits | 6,488,831 | 0.96 | % | 6,482,577 | 1.02 | % | 6,591,891 | 1.12 | % | 6,793,870 | 1.34 | % | 6,815,027 | 1.52 | % | 6,520,721 | 1.04 | % | 6,715,400 | 1.75 | % | |||||||||||||||||||||||||||||||||||
| Short-Term Borrowings | 734,904 | 1.49 | % | 752,907 | 1.50 | % | 749,114 | 1.56 | % | 694,000 | 1.74 | % | 644,753 | 1.83 | % | 745,590 | 1.51 | % | 649,644 | 1.98 | % | |||||||||||||||||||||||||||||||||||
| Long-Term Borrowings | 844,336 | 4.76 | % | 879,339 | 4.74 | % | 885,293 | 4.77 | % | 904,083 | 4.66 | % | 946,017 | 4.62 | % | 869,506 | 4.76 | % | 1,004,098 | 4.58 | % | |||||||||||||||||||||||||||||||||||
| Total Interest Bearing Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (including non-interest bearing deposits) | 8,068,071 | 1.41 | % | 8,114,823 | 1.47 | % | 8,226,298 | 1.56 | % | 8,391,953 | 1.73 | % | 8,405,797 | 1.89 | % | 8,135,817 | 1.48 | % | 8,369,142 | 2.11 | % | |||||||||||||||||||||||||||||||||||
| Total Interest Bearing Liabilities | $ | 7,236,587 | 1.57 | % | $ | 7,283,704 | 1.63 | % | $ | 7,458,900 | 1.72 | % | $ | 7,650,699 | 1.89 | % | $ | 7,668,052 | 2.07 | % | $ | 7,325,582 | 1.64 | % | $ | 7,641,434 | 2.31 | % | ||||||||||||||||||||||||||||
| Net Yield on Earning Assets (net of loan | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| loss reserve): (Margin) | 3.49 | % | 3.57 | % | 3.50 | % | 3.34 | % | 3.28 | % | 3.52 | % | 3.17 | % | ||||||||||||||||||||||||||||||||||||||||||
| Net Yield on Earning Assets: (Margin) | 3.42 | % | 3.50 | % | 3.44 | % | 3.29 | % | 3.24 | % | 3.45 | % | 3.14 | % | ||||||||||||||||||||||||||||||||||||||||||
| Pro Forma - Net Yield on Earning Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (net of loan loss reserve): (Margin) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| prior to reclass of Federal Reserve | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bank balances to Interest Bearing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | N/A | N/A | N/A | 3.48 | % | 3.35 | % | N/A | 3.25 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Pro Forma - Net Yield on Earning Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Margin) prior to reclass of Federal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reserve Bank balances to Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bearing Deposits | N/A | N/A | N/A | 3.43 | % | 3.31 | % | N/A | 3.21 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Wealth Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets under administration | $ | 10,616,931 | $ | 9,942,778 | $ | 9,229,435 | $ | 8,989,419 | $ | 8,471,813 | ||||||||||||||||||||||||||||||||||||||||||||||
| Assets under management | 2,394,916 | 2,252,299 | 2,285,178 | 2,199,946 | 2,549,386 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (included above) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Christiana Bank and Trust | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trust Revenues | $ | 1,539 | $ | 1,607 | $ | 1,555 | $ | 1,870 | $ | 1,577 | ||||||||||||||||||||||||||||||||||||||||||||||
14
| Financial Update for National Penn Bancshares (NPBC) for 9/30/2010 | ||||||||||||||||||||
| Page 6 of 6 | ||||||||||||||||||||
| Unaudited, numbers in thousands except share and per share data | ||||||||||||||||||||
| Quarterly, as of | ||||||||||||||||||||
| 9/30/2010 | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | ||||||||||||||||
| STATES OF OPERATION AND BANKING OFFICES | ||||||||||||||||||||
| BY STATE (LATEST AVAILABLE DATA) | ||||||||||||||||||||
| PA | ||||||||||||||||||||
| Total Number of Banking Offices | 124 | 124 | 124 | 124 | 124 | |||||||||||||||
| Total Number of Insured Subsidiaries | ||||||||||||||||||||
| (Bank & Thrift Subsidiaries) | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
| Total Number of ATMs | 132 | 133 | 133 | 133 | 136 | |||||||||||||||
| MD | ||||||||||||||||||||
| Total Number of Banking Offices | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
| Total Number of Insured Subsidiaries | ||||||||||||||||||||
| (Bank & Thrift Subsidiaries) | - | - | - | - | - | |||||||||||||||
| Total Number of ATMs | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
| DE | ||||||||||||||||||||
| Total Number of Banking Offices | 2 | 2 | 2 | 2 | 2 | |||||||||||||||
| Total Number of Insured Subsidiaries | ||||||||||||||||||||
| (Bank & Thrift Subsidiaries) | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
| Total Number of ATMs | 2 | 2 | 2 | 2 | 2 | |||||||||||||||
| TOTAL | ||||||||||||||||||||
| Total Number of Banking Offices | 127 | 127 | 127 | 127 | 127 | |||||||||||||||
| Total Number of Insured Subsidiaries | ||||||||||||||||||||
| (Bank & Thrift Subsidiaries) | 2 | 2 | 2 | 2 | 2 | |||||||||||||||
| Total Number of ATMs | 135 | 136 | 136 | 136 | 139 | |||||||||||||||
| EOP Employees (Full Time Equivalent) | 1,771 | 1,792 | 1,753 | 1,756 | 1,779 | |||||||||||||||
15