National Penn Bancshares, Inc. Reports Record Third Quarter
and Nine-Month Earnings
BOYERTOWN, Pa., October 15/PR Newswire-FirstCall/ -- National Penn Bancshares,
Inc. (Nasdaq: NPBC), the parent company of National Penn Bank and Investors
Trust Company, reported third quarter 2003 net income totaling $11.00 million,
or $0.45 per diluted share. Net income increased 19.5% compared to $9.21 million
earned in the third quarter of 2002 and diluted earnings per share increased
9.8% compared to prior year diluted earnings of $0.41. These results represent
the tenth consecutive quarter of record earnings.
For the first nine months of 2003, net income totaled a record $32.16
million, or $1.32 per diluted share. Compared to the first nine months of 2002,
net income increased 19.0% and diluted earnings per share increased 8.2%. NPBC's
earnings for the first nine months of 2003 produced annualized returns on
average assets and average shareholders' equity of 1.33% and 15.9% respectively.
The following significant items occurred during the third quarter of 2003:
-- The company completed the cash sale of Panasia Bank N.A. for
$34.50 million. This transaction is presented in the financial
statements as discontinued operations. The sale resulted in a
gain of $5.99 million after taxes.
-- The company took advantage of the low interest rate
environment and refinanced $77.50 million in long-term Federal
Home Loan Bank (FHLB) borrowings. NPBC will enjoy lower
borrowing costs from the FHLB for the next six years as a
result of this transaction. The company incurred a prepayment
fee of $4.55 million after taxes, in accordance with the FHLB
borrowing agreement.
-- The company sold approximately $35 million in investment
securities available for sale resulting in an after tax loss
of $369,000. This transaction allowed NPBC to re-deploy those
funds into higher yielding investments.
-- Our previously announced cash acquisition of HomeTowne
Heritage Bank for $37.60 million has been scheduled for
completion in the 4th quarter 2003.
The company had total assets at September 30, 2003 of $3.27 billion and
total deposits of $2.38 billion. The allowance for loan and lease losses as of
September 30, 2003 was $45.99 million, which represents 2.16% of total loans
outstanding of $2.13 billion.
On August 27, 2003, the Board of Directors declared a 5% stock dividend
payable September 30, 2003 to shareholders of record on September 12, 2003. All
per share information has been restated to reflect this stock dividend. National
Penn Bancshares, Inc. has declared stock dividends or stock splits for 25
consecutive years.
National Penn Bancshares, Inc. is a $3.27 billion company operating 58
community offices in southeastern Pennsylvania through National Penn Bank. Trust
and investment management services are provided through Investors Trust Company
and FirstService Capital; brokerage services are provided through Penn
Securities, Inc.; mortgage banking activities are provided through Penn 1st
Financial Services, Inc.; insurance services are provided through FirstService
Insurance Company; and equipment leasing services are provided 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 National Penn's Web site at
www.nationalpennbancshares.com.
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 NPBC's reports filed from time to time with
the Securities and Exchange Commission, which are incorporated herein by
reference. NPBC cautions you not to place undue reliance on these statements.
NPBC undertakes no obligation to publicly release or update any of these
statements.
National Penn Bancshares, Inc.
Contact: Gary L. Rhoads, 610-369-6341
Exchange Listing Nasdaq "NPBC"
(Dollars in thousands, except per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2003 2002 2003 2002
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CONDITION
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $ 3,269,220 $ 2,895,407
Total deposits 2,384,538 2,134,180
Total loans and leases 2,133,923 1,869,158
Total shareholders' equity 294,875 220,227
Book value per share 12.17 10.09
- ------------------------------------------------------------------------------------------------------------------------------------
EARNINGS
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest income $ 41,149 $ 40,827 $ 123,020 $ 122,739
Total interest expense 12,588 15,602 38,735 46,970
- ------------------------------------------------------------------------------------------------------------------------------------
Net Interest Income 28,561 25,225 84,285 75,769
Provision for loan and lease losses 2,286 4,410 6,896 10,860
- ------------------------------------------------------------------------------------------------------------------------------------
Net interest income after provision
for loan and lease losses 26,275 20,815 77,389 64,909
Other income 9,781 9,634 29,359 26,817
Other expenses 30,686 19,645 75,824 59,643
- ------------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 5,370 10,804 30,924 32,083
Income taxes 951 2,075 6,690 6,589
- ------------------------------------------------------------------------------------------------------------------------------------
Net income from continuing operations 4,419 8,729 24,234 25,494
Net income from discontinued operations 6,585 482 7,923 1,520
- ------------------------------------------------------------------------------------------------------------------------------------
Net income $ 11,004 $ 9,211 $ 32,157 $ 27,014
- ------------------------------------------------------------------------------------------------------------------------------------
Return on average assets 1.33% 1.30%
Return on average shareholders' equity 15.9% 17.5%
Average shares - basic 23,812,938 21,849,636
Average shares - diluted 24,389,546 22,138,763
- ------------------------------------------------------------------------------------------------------------------------------------
PER SHARE
- ------------------------------------------------------------------------------------------------------------------------------------
Basic earnings:
- ------------------------------------------------------------------------------------------------------------------------------------
Net income $ 0.46 $ 0.42 $ 1.35 $ 1.24
- ------------------------------------------------------------------------------------------------------------------------------------
Diluted earnings:
- ------------------------------------------------------------------------------------------------------------------------------------
Net income $ 0.45 $ 0.41 $ 1.32 $ 1.22
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends paid in cash (1) $ 0.23 $ 0.20 $ 0.65 $ 0.60
(1) Excludes the effect of shares issued for FirstService Bank Financial
information restated to include a 5% stock dividend issued December 27, 2002 and
September 30, 2003.
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/03
Date 10/15/03
PAGE: 1 OF 7 AS OF AS OF
BALANCE SHEET - ASSETS ($000s) 9/30/03 9/30/02
Cash & Cash Equivalents $ 113,675 $ 162,866
----------------- -----------------
Trading Account Securities - -
----------------- -----------------
Securities Available for Sale 854,592 763,103
----------------- -----------------
Held to Maturity Securities - -
----------------- -----------------
Other Securities - -
----------------- -----------------
Total Securities 854,592 763,103
----------------- -----------------
Total Cash and Securities 968,267 925,969
----------------- -----------------
Loans & Leases Held for Investment* 2,044,996 1,837,130
----------------- -----------------
Loans & Leases Held for Sale* 88,927 32,028
----------------- -----------------
Total Loans and Leases* 2,133,923 1,869,158
----------------- -----------------
*Indicates data net of discount, gross of reserve
Loan Loss Reserve (45,990) (42,323)
----------------- -----------------
Goodwill 58,816 20,169
----------------- -----------------
Other Intangibles 9,938 1,253
----------------- -----------------
Total Intangible Assets 68,754 21,422
----------------- -----------------
Mortgage Servicing Rights - -
----------------- -----------------
Purchased Credit Card Relationships - -
----------------- -----------------
Real Estate Owned & Held for Investment 798 5,721
----------------- -----------------
Other Assets 143,468 115,460
----------------- -----------------
Total Assets $ 3,269,220 $ 2,895,407
----------------- -----------------
BALANCE SHEET - LIABILITIES ($000S)
Deposits $ 2,384,538 $ 2,134,180
----------------- -----------------
Borrowings 495,354 412,755
----------------- -----------------
Trust Preferred Securities 63,250 103,500
----------------- -----------------
Other Liabilities 31,203 24,745
----------------- -----------------
Total Liabilities $ 2,974,345 $ 2,675,180
----------------- -----------------
BALANCE SHEET - EQUITY ($000s)
Redeemable Preferred Stock $ - $ -
----------------- -----------------
Preferred Equity $ - $ -
----------------- -----------------
Common Equity $ 294,875 $ 220,227
----------------- -----------------
MEMO ITEMS
Accumulated other comprehensive income $ 17,186 $ 20,611
----------------- -----------------
Publicly Reported Book Value Per Share (1) $ 12.17 $ 10.09
----------------- -----------------
EOP Common Shares Outstanding (excluding Treasury shares)(1) 24,222,377 21,817,182
----------------- -----------------
Treasury Shares Held By Company 36,536 241,707
----------------- -----------------
Did you announce a repurchase plan during this period? NO NO
----------------- -----------------
Number of Shares to be Repurchased in Plan 1,000,000 1,000,000
----------------- -----------------
Number of Shares Repurchased During Period 112,994 187,761
----------------- -----------------
Average Price of Repurchased Shares 29.52 25.63
----------------- -----------------
(1) restated for 5% stock dividend paid December 27, 2002 and September 30, 2003.
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/03
PAGE: 2 OF 7
FOR QUARTER FOR QUARTER FOR QUARTER YEAR TO FOR QUARTER YEAR TO
ENDED ENDED ENDED DATE ENDED DATE
INCOME STATEMENT ($000s) 3/31/03 6/30/03 9/30/03 9/30/03 9/30/02 9/30/02
Interest Income $ 40,101 $ 41,770 $ 41,149 $ 123,020 $ 40,827 $ 122,739
------------ ------------ ------------ ------------ ------------ ------------
Interest Expense 12,918 13,229 12,588 38,735 15,602 46,970
------------ ------------ ------------ ------------ ------------ ------------
Net Interest Income 27,183 28,541 28,561 84,285 25,225 75,769
------------ ------------ ------------ ------------ ------------ ------------
FTE adjustment 1,994 2,146 1,892 6,032 2,039 5,798
------------ ------------ ------------ ------------ ------------ ------------
Net Interest Income (FTE) 29,177 30,687 30,453 90,317 27,264 81,567
------------ ------------ ------------ ------------ ------------ ------------
Loan Loss Provision 2,255 2,355 2,286 6,896 4,410 10,860
------------ ------------ ------------ ------------ ------------ ------------
Investment Securities Trans -- -- (369) (369) 367 117
------------ ------------ ------------ ------------ ------------ ------------
Nonrecurring Income -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Nonrecurring Expense - Prepayment fee -- -- 7,002 7,002 -- --
------------ ------------ ------------ ------------ ------------ ------------
Trading Account Income -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Foreign Exchange Income -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Trust Revenue 1,299 1,354 1,314 3,967 1,298 4,036
------------ ------------ ------------ ------------ ------------ ------------
Service Charges on Deposits 2,787 2,922 3,141 8,850 2,768 7,916
------------ ------------ ------------ ------------ ------------ ------------
Mortgage Banking Income 1,441 1,552 1,246 4,239 1,541 3,474
------------ ------------ ------------ ------------ ------------ ------------
Fee Income from Investment Product Sales 520 459 393 1,372 603 1,747
------------ ------------ ------------ ------------ ------------ ------------
Other Noninterest Income 3,104 4,140 4,056 11,300 3,057 9,527
------------ ------------ ------------ ------------ ------------ ------------
Total Noninterest Income(excludes
securities gains/losses) 9,151 10,427 10,150 29,728 9,267 26,700
------------ ------------ ------------ ------------ ------------ ------------
Employee Comp. & Benefit Expense 12,566 13,590 14,055 40,211 11,273 33,207
------------ ------------ ------------ ------------ ------------ ------------
Occupancy & Equipment Expense 3,269 3,677 3,281 10,227 3,056 8,498
------------ ------------ ------------ ------------ ------------ ------------
Foreclosed Property Expense -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Amortization of Intangibles 126 302 299 727 38 112
------------ ------------ ------------ ------------ ------------ ------------
(Excludes Servicing and Credit
Card Intangibles)
Other Noninterest Expense 5,363 6,245 6,049 17,657 5,278 17,826
------------ ------------ ------------ ------------ ------------ ------------
Total Noninterest Exp 21,324 23,814 23,684 68,822 19,645 59,643
------------ ------------ ------------ ------------ ------------ ------------
Minority Interest Expense -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net Income Before Taxes 12,755 12,799 5,370 30,924 10,804 32,083
------------ ------------ ------------ ------------ ------------ ------------
Tax Provision 2,997 2,742 951 6,690 2,075 6,589
------------ ------------ ------------ ------------ ------------ ------------
Net Inc. from continuing operations 9,758 10,057 4,419 24,234 8,729 25,494
------------ ------------ ------------ ------------ ------------ ------------
Net inc. from discontinued operations 632 706 6,585 7,923 482 1,520
------------ ------------ ------------ ------------ ------------ ------------
Net Income $ 10,390 $ 10,763 $ 11,004 $ 32,157 $ 9,211 $ 27,014
------------ ------------ ------------ ------------ ------------ ------------
EARNINGS PER SHARE:
Basic
------------ ------------ ------------ ------------ ------------ ------------
Net income (1) $ 0.44 $ 0.45 $ 0.46 $ 1.35 $ 0.42 $ 1.24
------------ ------------ ------------ ------------ ------------ ------------
Diluted
------------ ------------ ------------ ------------ ------------ ------------
Net income (1) $ 0.43 $ 0.44 $ 0.45 $ 1.32 $ 0.41 $ 1.22
------------ ------------ ------------ ------------ ------------ ------------
Average Shares Basic (1) 23,778,647 24,195,437 24,214,139 23,812,938 21,856,220 21,849,636
------------ ------------ ------------ ------------ ------------ ------------
Average Shares Diluted (1) 24,351,334 24,802,411 24,768,609 24,389,546 22,160,762 22,138,763
------------ ------------ ------------ ------------ ------------ ------------
Dividends on Preferred Stock ($000s) $ -- $ -- $ -- $ -- $ -- $ --
------------ ------------ ------------ ------------ ------------ ------------
(1) restated for 5% stock dividend paid December 27, 2002 and September 30, 2003.
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/03
AVERAGE BALANCE SHEET ($OOOs)
PAGE: 3 of 7
As of For QTR For QTR For QTR For QTR
9/30/03 Ended 3/31/03 Ended 6/30/03 Ended 9/30/03 Ended 12/31/02
(YTD AVG) QTRLY AVG QTRLY AVG QTRLY AVG QTRLY AVG
----------------- ----------------- ----------------- ----------------- -----------------
Total Loans (net of unearned) 2,076,633 1,969,999 2,119,207 2,138,838 1,857,174
----------------- ----------------- ----------------- ----------------- -----------------
Loan Loss Reserve (46,843) (44,572) (47,750) (48,168) (43,186)
----------------- ----------------- ----------------- ----------------- -----------------
Investment Securities
(incl. trading assets) 812,222 750,200 843,621 841,837 730,343
----------------- ----------------- ----------------- ----------------- -----------------
Other Earning Assets 58,879 69,273 32,539 74,765 101,493
----------------- ----------------- ----------------- ----------------- -----------------
Total Earning Assets
(net of loan loss reserve) 2,900,891 2,744,900 2,947,617 3,007,272 2,645,824
----------------- ----------------- ----------------- ----------------- -----------------
Total Assets 3,212,252 3,007,109 3,291,532 3,334,517 2,877,224
----------------- ----------------- ----------------- ----------------- -----------------
Savings 142,320 131,212 148,770 144,776 122,194
----------------- ----------------- ----------------- ----------------- -----------------
NOW Accounts 466,620 422,020 460,980 517,858 378,229
----------------- ----------------- ----------------- ----------------- -----------------
Money Market Accounts 593,553 537,837 613,600 628,231 483,849
----------------- ----------------- ----------------- ----------------- -----------------
Certificates 780,020 779,900 800,640 762,522 805,245
----------------- ----------------- ----------------- ----------------- -----------------
Total Int. Bearing Deposits 1,982,513 1,870,969 2,023,990 2,053,387 1,789,517
----------------- ----------------- ----------------- ----------------- -----------------
Non-Interest Bearing Deposits 389,925 346,410 404,386 415,410 333,136
----------------- ----------------- ----------------- ----------------- -----------------
Total Deposits 2,372,438 2,217,379 2,428,376 2,468,797 2,122,653
----------------- ----------------- ----------------- ----------------- -----------------
Short-Term Borrowings 307,172 283,790 313,517 323,768 253,345
----------------- ----------------- ----------------- ----------------- -----------------
Long-Term Borrowings 234,342 233,686 235,417 233,922 257,894
----------------- ----------------- ----------------- ----------------- -----------------
Total Int. Bearing Liabilities
(incl. non-int bearing deposits) 2,913,952 2,734,855 2,977,310 3,026,487 2,633,892
----------------- ----------------- ----------------- ----------------- -----------------
Total Int. Bearing Liabilities 2,524,027 2,388,445 2,572,924 2,611,077 2,300,756
----------------- ----------------- ----------------- ----------------- -----------------
Total Shareholder's Equity 269,189 246,105 287,412 273,747 217,989
----------------- ----------------- ----------------- ----------------- -----------------
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/03
PAGE: 4 of 7
FOR QUARTER FOR QUARTER FOR QUARTER YEAR TO YEAR
ENDED ENDED ENDED DATE ENDED
CHARGEOFFS ($000s) 3/31/03 6/30/03 9/30/03 9/30/03 12/31/02
Loan Chargeoffs $ 2,807 $ 1,980 $ 2,740 $ 7,527 $ 15,786
---------------- ---------------- ---------------- ---------------- ----------------
Recoveries on Loans $ 705 $ 645 $ 955 $ 2,305 $ 2,166
---------------- ---------------- ---------------- ---------------- ----------------
Net Loan Chargeoffs $ 2,102 $ 1,335 $ 1,785 $ 5,222 $ 13,620
---------------- ---------------- ---------------- ---------------- ----------------
AS OF AS OF AS OF AS OF
ASSET QUALITY AND OTHER DATA ($000s) 3/31/03 6/30/03 9/30/03 12/31/02
Nonaccrual Loans $ 18,280 $ 21,152 $ 17,504 $ 14,639
---------------- ---------------- ---------------- ----------------
Renegotiated Loans - - - -
---------------- ---------------- ---------------- ----------------
Other Real Estate Owned 450 760 798 318
---------------- ---------------- ---------------- ----------------
Total Nonperforming Assets 18,730 21,912 18,302 14,957
--------------------------------- ---------------- ----------------
Loans 90+ Days Past Due
& Still Accruing 435 813 541 987
---------------- ---------------- ---------------- ----------------
NPAs plus Loans over 90 $ 19,165 $ 22,725 $ 18,843 $ 15,944
---------------- ---------------- ---------------- ----------------
AS OF AS OF AS OF AS OF
REGULATORY CAPITAL DATA ($000s) 3/31/03 6/30/03 9/30/03 12/31/02
Tier 1 Capital $ 248,067 $ 249,518 $ 272,230 $ 244,932
---------------- ---------------- ---------------- ----------------
Tier 1 Ratio (%) 10.28% 10.28% 11.50% 11.81%
---------------- ---------------- ---------------- ----------------
Total Capital (Tier 1 + Tier 2) $ 278,438 $ 280,069 $ 302,018 $ 271,184
---------------- ---------------- ---------------- ----------------
Total Capital Ratio (%) 11.54% 11.54% 12.76% 13.08%
---------------- ---------------- ---------------- ----------------
Total Risk-Adjusted Assets $ 2,413,361 $ 2,426,877 $ 2,366,833 $ 2,073,210
---------------- ---------------- ---------------- ----------------
Tier 1 Leverage Ratio 8.51% 7.81% 8.34% 8.66%
---------------- ---------------- ---------------- ----------------
AS OF AS OF AS OF YEAR TO
SUPPLEMENTAL DATA ($000s) 3/31/03 6/30/03 9/30/03 DATE
9/30/03
1-4 Family Mortgage Loans
Serviced For Others $ 120,031 $ 140,520 $ 112,461
---------------- ---------------- ----------------
Propriety Mutual Fund Balances $ - $ - $ -
---------------- ---------------- ----------------
(Net Asset Value in $000s)
Held to Maturity Securities
(Fair Value) $ - $ - $ -
---------------- ---------------- ----------------
Return on Avg. Assets (annualized) 1.38% 1.31% 1.32% 1.33%
---------------- ---------------- ---------------- ----------------
Return on Avg. Equity (annualized) 16.9% 15.0% 16.1% 15.9%
---------------- ---------------- ---------------- ----------------
Preferred Stock Dividends
(total $ in period) $ - $ - $ - $ -
---------------- ---------------- ---------------- ----------------
Common Stock Dividends
(total $ in period) $ 4,767 $ 5,312 $ 5,342 $ 15,421
---------------- ---------------- ---------------- ----------------
EOP Employees (Full Time Equivalent) 995 1,011 957
---------------- ---------------- ----------------
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/03
PAGE: 5 of 7 AS OF AS OF AS OF
PERIOD END BALANCES: 3/31/03 6/30/03 9/30/03
Loan Breakdown: (regulatory)
Commercial/Industrial $ 355,992 $ 386,875 $ 364,192
---------------- ---------------- ----------------
Commercial Real Estate 775,890 796,844 771,654
---------------- ---------------- ----------------
Residential Mortgage (including multi-family) 493,254 460,795 511,657
---------------- ---------------- ----------------
Real Estate Construction (and Land Development) 140,190 128,246 139,492
---------------- ---------------- ----------------
Home Equity (revolving and 2nd lien) 238,366 226,974 215,995
---------------- ---------------- ----------------
Consumer (Loans to Individuals) 51,295 55,996 55,498
---------------- ---------------- ----------------
Bank Card - - -
---------------- ---------------- ----------------
Foreign - - -
---------------- ---------------- ----------------
(Other) 55,576 66,991 75,435
------------------------------------------------------- ---------------- ---------------- ----------------
Total Loans (net of unearned) 2,110,563 2,122,721 2,133,923
---------------- ---------------- ----------------
Investment Securities (incl. trading assets) 858,727 931,914 854,592
---------------- ---------------- ----------------
Other Earning Asset 29,221 4,533 15,104
---------------- ---------------- ----------------
Total Earning Assets (net of loan loss reserve) 2,951,831 3,011,453 2,957,629
---------------- ---------------- ----------------
Total Assets 3,283,414 3,371,134 3,269,220
---------------- ---------------- ----------------
Deposit Breakdown:
Savings 140,262 152,089 122,211
---------------- ---------------- ----------------
NOW Accounts 455,713 462,931 588,617
---------------- ---------------- ----------------
Money Market Accounts 595,045 621,060 609,018
---------------- ---------------- ----------------
Certificates 573,238 547,484 504,904
---------------- ---------------- ----------------
CDs>$100m 237,358 237,762 187,230
---------------- ---------------- ----------------
Foreign CDs - -
---------------- ---------------- ----------------
(as needed) - - -
------------------------------------------------------- ---------------- ---------------- ----------------
Total Int. Bearing Deposits 2,001,616 2,021,326 2,011,980
---------------- ---------------- ----------------
Non-Interest Bearing Deposits 415,299 436,718 372,557
---------------- ---------------- ----------------
Total Deposits 2,416,915 2,458,044 2,384,537
---------------- ---------------- ----------------
Short-Term Borrowings 310,915 346,113 10,045
---------------- ---------------- ----------------
Long-Term Debt 236,717 235,399 226,582
---------------- ---------------- ----------------
Total Int. Bearing Liabilities (incl. non-int bearing deposits) 2,964,547 3,039,556 2,621,164
---------------- ---------------- ----------------
Total Int. Bearing Liabilities 2,549,248 2,602,838 2,248,607
---------------- ---------------- ----------------
Total Stockholders Equity $ 288,998 $ 295,262 $ 294,875
---------------- ---------------- ----------------
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/03
PAGE: 6 of 7
AS OF AS OF AS OF
PERIOD END BALANCES: 3/31/03 6/30/03 9/30/03
Loan Breakdown: (internal)
Business Purpose Loans $ 909,606 $ 943,131 $ 906,079
----------------- ---------------- ----------------
Residential Mortgage 255,080 235,279 302,116
----------------- ---------------- ----------------
Commercial Real Estate, Construction and Land Dev 665,177 692,298 692,322
----------------- ---------------- ----------------
Consumer (loans to Individual) 280,700 252,013 233,406
----------------- ---------------- ----------------
Total Loans (net of unearned) $2,110,563 $ 2,122,721 $ 2,133,923
----------------- ---------------- ----------------
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/03
PAGE 7 OF 7
BALANCE AND YIELD/COST ANALYSIS: AS OF AS OF AS OF
(Qtr Avg) 3/31/03 6/30/03 9/30/03
Avg Balance Yield Avg Balance Yield Avg Balance Yield
Total Loans (net of unearned) $ 1,969,999 6.83% $ 2,119,207 6.63% $ 2,133,838 6.37%
---------------- -------- ---------------- --------- ---------------- ---------
Investment Securities (incl. trading assets) 750,200 6.07% 843,621 5.35% 841,837 5.01%
---------------- -------- ---------------- --------- ---------------- ---------
Other Earning Assets 69,273 1.26% 32,539 1.24% 74,765 1.00%
---------------- -------- ---------------- --------- ---------------- ---------
Total Earning Assets 2,789,472 6.49% 2,995,367 6.21% 3,050,440 5.86%
---------------- -------- ---------------- --------- ---------------- ---------
Total Earning Assets (net of loan loss reserve) 2,744,900 6.59% 2,947,617 6.31% 3,007,272 5.95%
---------------- -------- ---------------- --------- ---------------- ---------
Total Assets 3,007,109 6.02% 3,291,532 5.66% 3,334,517 5.36%
---------------- -------- ---------------- --------- ---------------- ---------
--------
Savings 131,212 0.70% 148,770 0.66% 144,776 0.44%
---------------- -------- ---------------- --------- ---------------- ---------
NOWAccounts 422,020 1.17% 460,980 1.13% 517,858 0.95%
---------------- -------- ---------------- --------- ---------------- ---------
Money Market Accounts 537,837 0.97% 613,600 0.97% 628,231 0.83%
---------------- -------- ---------------- --------- ---------------- ---------
Certificates 779,900 3.35% 800,640 3.17% 762,522 3.05%
---------------- -------- ---------------- --------- ---------------- ---------
--------
Total Int. Bearing Deposits 1,870,969 1.99% 2,023,990 1.86% 2,053,387 1.66%
---------------- ---------------- --------- ---------------- ---------
Non-Interest Bearing Deposits 364,410 404,386 415,410
---------------- -------- ---------------- ----------------
Total Deposits 2,235,379 1.66% 2,428,376 1.55% 2,468,797 1.38%
---------------- -------- ---------------- --------- ---------------- ---------
--------
Short-Term Borrowings 283,790 1.32% 313,517 1.22% 323,768 1.14%
---------------- -------- ---------------- --------- ---------------- ---------
Long-Term Borrowings 233,686 5.90% 235,417 5.89% 233,922 5.86%
---------------- -------- ---------------- --------- ---------------- ---------
Total Int. Bearing Liabilities
(incl. non-int bearing deposits) 2,752,855 1.99% 2,977,310 1.86% 3,026,487 1.70%
---------------- -------- ---------------- --------- ---------------- ---------
Total Int. Bearing Liabilities 2,388,445 2.29% 2,572,924 2.15% 2,611,077 1.97%
---------------- -------- ---------------- --------- ---------------- ---------
Total Shareholder's Equity $ 246,105 $ 287,412 $ 273,747
---------------- -------- ---------------- ----------------
--------
Net Yield on Earning Assets (
net of loan loss reserve): (Margin) 4.60% 4.44% 4.23%
-------- --------- ---------
Net Yield on Earning Assets: (Margin) 4.52% 4.37% 4.17%
-------- --------- ---------
STATES OF OPERATION AND BANKING OFFICES BY STATE (LATEST AVAILABLE DATA)
State Number of Full Service Banking Offices (Domestic and in the U.S. Territories)
1. PA 58
------------- ----------------
Total Number of Banking Offices 58
----------------
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 1
----------------
Total Number of ATMs 62
----------------
2. NJ 0
------------- ----------------
Total Number of Banking Offices 0
----------------
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 0
----------------
Total Number of ATMs 0
----------------
2. VA 0
------------- ----------------
Total Number of Banking Offices 0
----------------
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 0
----------------
Total Number of ATMs 0
----------------
Have you restated any prior period's financial statements for a pooling of
interest and/or a change in accounting principles? N (Y/N)
Periods Restated on this report:
------------------------------------------------------- --------
Reason:
------------------------------------------------------- --------