The Financial Highlights Table (page 3 of this Press Release) includes Footnote
#1, the Reconciliation Table for Non-GAAP Financial Measure, which was
inadvertently omitted from the press release as originally issued.
[NATIONAL PENN BANCSHARES, INC. LOGO OMITTED]
PRESS RELEASE
Immediate
Investor contact:
Gary L. Rhoads - (610) 369-6341
Media contact:
Catharine S. Bower - (610) 369-6618
Csbower@natpennbank.com
National Penn Bancshares Reports Record Third Quarter Earnings
BOYERTOWN, Pa., October 14, 2004/PR Newswire-FirstCall/ -- National Penn
Bancshares, Inc. (Nasdaq: NPBC), the parent company of National Penn Bank and
Investors Trust Company, reported third quarter 2004 net income totaling $13.73
million, or $0.39 per diluted share. Net income increased 24.8% compared to
$11.00 million earned in the third quarter of 2003 and diluted earnings per
share increased 8.3% compared to prior year diluted earnings of $0.36. These
results represent the fourteenth consecutive quarter of record earnings. All per
share data have been adjusted for the 5-for-4 stock split on September 30, 2004.
For the first nine months of 2004, net income totaled a record $37.28
million, or $1.14 per diluted share. Compared to the first nine months of 2003,
net income increased 15.9% and diluted earnings per share increased 8.6%. NPBC's
earnings for the first nine months of 2004 produced annualized returns on
average assets and average shareholders' equity of 1.29% and 14.6%,
respectively.
The company had total assets at September 30, 2004 of $4.34 billion and
total deposits of $3.15 billion. The allowance for loan and lease losses as of
September 30, 2004 was $57.39 million, which represents 2.04% of total loans
outstanding of $2.81 billion.
NPBC was recognized for the seventh consecutive year as one of
"America's Finest Companies" in the 2005 Edition of The Staton Institute's
Annual Investment Directory. This year, for the first time, NPBC was honored to
qualify for "The Super 50 Team", Staton's highest achievement. To qualify for
"The Super 50 Team", a company must have a combined total of at least 50 years
of higher earnings and higher dividends per share. Only 18 American companies
(out of more than 19,000 that trade publicly) enjoy this distinction.
On September 30, 2004, NPBC paid a five-for-four stock split to
shareholders of record on September 10, 2004. This represents the 27th
consecutive year that NPBC has paid either a stock split or a stock dividend.
On August 17, 2004, NPBC paid a cash dividend of $0.24 per share
(equivalent to 19.2 cents per share after effect of the 5-for-4 stock split),
payable to shareholders of record on August 7, 2004. National Penn Bancshares,
Inc. has paid cash dividends without interruption for over 129 years.
National Penn Bancshares, Inc. is a $4.34 billion financial services
company operating 73 community offices in southeastern Pennsylvania through
National Penn Bank, and its FirstService, HomeTowne Heritage, and The Peoples
Bank of Oxford Divisions. The Peoples Bank of Oxford Division also operates one
community office in Cecil County, Maryland. 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 National Penn Mortgage Company; insurance
services are provided through FirstService Insurance Agency, Inc.; 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 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 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,
2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CONDITION
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $4,339,256 $3,269,220
Total deposits 3,149,658 2,384,538
Total loans and leases 2,813,931 2,133,923
Total shareholders' equity 423,041 294,875
Book value per share 12.25 9.74
- -----------------------------------------------------------------------------------------------------------------------------------
EARNINGS
- -----------------------------------------------------------------------------------------------------------------------------------
Total interest income $53,133 $41,149 $143,532 $123,020
Total interest expense 15,968 12,588 42,538 38,735
- -----------------------------------------------------------------------------------------------------------------------------------
Net Interest Income 37,165 28,561 100,994 84,285
Provision for loan and lease losses 1,225 2,286 4,188 6,896
- -----------------------------------------------------------------------------------------------------------------------------------
Net interest income after provision
for loan and lease losses 35,940 26,275 96,806 77,389
Other income 12,178 9,781 34,253 29,359
Other expenses 30,036 30,686 81,801 75,824
- -----------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 18,082 5,370 49,258 30,924
Income taxes 4,349 951 11,977 6,690
- -----------------------------------------------------------------------------------------------------------------------------------
Net income from continuing operations 13,733 4,419 37,281 24,234
Net income from discontinued operations - 6,585 - 7,923
- -----------------------------------------------------------------------------------------------------------------------------------
Net income $13,733 $11,004 $37,281 $32,157
- -----------------------------------------------------------------------------------------------------------------------------------
Return on average assets 1.29% 1.33%
Return on average shareholders' equity 14.6% 15.9%
Return on average tangible equity (1) 25.5% 21.1%
Average shares - basic 31,996,854 29,766,172
Average shares - diluted 32,698,026 30,486,932
- -----------------------------------------------------------------------------------------------------------------------------------
PER SHARE
- -----------------------------------------------------------------------------------------------------------------------------------
Basic earnings:
- -----------------------------------------------------------------------------------------------------------------------------------
Net income $0.40 $0.37 $1.17 $1.08
- -----------------------------------------------------------------------------------------------------------------------------------
Diluted earnings:
- -----------------------------------------------------------------------------------------------------------------------------------
Net income $0.39 $0.36 $1.14 $1.05
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends paid in cash (1) $0.19 $0.18 $0.57 $0.52
Financial information restated to include a 5 for 4 stock split issued September 30, 2004, and
a 5% stock dividend issued September 30, 2003.
(1) Reconciliation Table for Non-GAAP Financial Measure
Return on average shareholders' equity 14.6% 15.9%
Effect of goodwill and intangibles 10.9% 5.2%
Return on average tangible equity 25.5% 21.1%
Average tangible equity excludes acquisition related average goodwill and intangibles:
Average shareholders' equity $341,348 $269,189
Average goodwill and intangibles (146,262) (66,451)
Average tangible equity 195,086 202,738
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/04
Date 10/14/2004
PAGE: 1 OF 7 AS OF AS OF AS OF
BALANCE SHEET - ASSETS ($000s) 9/30/2004 9/30/2003 12/31/2003
Cash & Cash Equivalents $ 126,610 $ 113,675 $ 98,397
---------------- ---------------- ----------------
Trading Account Securities - - -
---------------- ---------------- ----------------
Securities Available for Sale 1,028,487 854,592 934,375
---------------- ---------------- ----------------
Held to Maturity Securities 50,273 - -
---------------- ---------------- ----------------
Other Securities - - -
---------------- ---------------- ----------------
Total Securities 1,078,760 854,592 934,375
---------------- ---------------- ----------------
Total Cash and Securities 1,205,370 968,267 1,032,772
---------------- ---------------- ----------------
Loans & Leases Held for Investment* 2,808,830 2,044,996 2,241,355
---------------- ---------------- ----------------
Loans & Leases Held for Sale* 5,101 88,927 29,344
---------------- ---------------- ----------------
Total Loans and Leases* 2,813,931 2,133,923 2,270,699
---------------- ---------------- ----------------
*Indicates data net of discount, gross of reserve
Loan Loss Reserve (57,391) (45,990) (49,265)
---------------- ---------------- ----------------
Goodwill 183,628 58,816 99,313
---------------- ---------------- ----------------
Other Intangibles 18,337 9,938 11,897
---------------- ---------------- ----------------
Total Intangible Assets 201,965 68,754 111,210
---------------- ---------------- ----------------
Mortgage Servicing Rights - - -
---------------- ---------------- ----------------
Purchased Credit Card Relationships - - -
---------------- ---------------- ----------------
Real Estate Owned & Held for Investment 793 798 735
---------------- ---------------- ----------------
Assets from Discontinued Operations - - -
---------------- ---------------- ----------------
Other Assets 174,588 143,468 146,423
---------------- ---------------- ----------------
Total Assets $ 4,339,256 $ 3,269,220 $ 3,512,574
---------------- ---------------- ----------------
BALANCE SHEET - LIABILITIES ($000S)
Deposits $ 3,149,658 $ 2,384,538 $ 2,435,296
---------------- ---------------- ----------------
Borrowings 611,286 495,354 674,075
---------------- ---------------- ----------------
Trust Preferred Securities - 63,250 63,250
---------------- ---------------- ----------------
Subordinated Debt 127,063 -
---------------- ---------------- ----------------
Liabilities from Discontinued Operations - - -
---------------- ---------------- ----------------
Other Liabilities 28,208 31,203 22,140
---------------- ---------------- ----------------
Total Liabilities $ 3,916,215 $ 2,974,345 $ 3,194,761
---------------- ---------------- ----------------
BALANCE SHEET - EQUITY ($000s)
Redeemable Preferred Stock $ - $ - $ -
---------------- ---------------- ----------------
Preferred Equity $ - $ - $ -
---------------- ---------------- ----------------
Common Equity $ 423,041 $ 294,875 $ 317,813
---------------- ---------------- ----------------
MEMO ITEMS
Accumulated other comprehensive income $ 18,885 $ 17,186 $ 19,595
---------------- ---------------- ----------------
Publicly Reported Book Value Per Share (1) $ 12.25 $ 9.74 $ 10.47
---------------- ---------------- ----------------
EOP Common Shares Outstanding (excluding Treasury shares)(1) 34,522,076 30,277,971 30,355,633
---------------- ---------------- ----------------
Treasury Shares Held By Company 17,366 36,536 2,626
---------------- ---------------- ----------------
Did you announce a repurchase plan during this period? NO NO YES
---------------- ---------------- ----------------
Number of Shares to be Repurchased in Plan 1,000,000 1,000,000 1,000,000
---------------- ---------------- ----------------
Number of Shares Repurchased During Period 22,100 112,994 234,488
---------------- ---------------- ----------------
Average Price of Repurchased Shares 29.54 29.52 30.63
---------------- ---------------- ----------------
(1) restated for a 5 for 4 stock split paid September 30, 2004, and a 5% stock dividend paid September 30, 2003.
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/04
PAGE: 2 OF 7
FOR QUARTER FOR QUARTER FOR QUARTER YEAR TO FOR QUARTER YEAR
ENDED ENDED ENDED DATE ENDED ENDED
INCOME STATEMENT ($000s) 3/31/2004 6/30/2004 9/30/2004 9/30/2004 9/30/2003 12/31/2003
Interest Income $ 44,174 $ 46,225 $ 53,133 $ 143,532 $ 41,149 $ 165,648
------------- ------------ ------------- --------- -----------------------
Interest Expense 12,749 13,821 15,968 42,538 12,588 51,099
------------- ------------ ------------- --------- -----------------------
Net Interest Income 31,425 32,404 37,165 100,994 28,561 114,549
------------- ------------ ------------- --------- -----------------------
FTE adjustment 2,074 1,940 2,165 6,179 1,892 8,049
------------- ------------ ------------- --------- -----------------------
Net Interest Income (FTE) 33,499 34,344 39,330 107,173 30,453 122,598
------------- ------------ ------------- --------- -----------------------
Loan Loss Provision 1,763 1,200 1,225 4,188 2,286 9,371
------------- ------------ ------------- --------- -----------------------
Investment Securities Trans. (196) - 100 (96) (369) (369)
------------- ------------ ------------- --------- -----------------------
Nonrecurring Income - - - - - -
------------- ------------ ------------- --------- -----------------------
Nonrecurring Expense - Prepayment fee - - - - 7,002 7,002
------------- ------------ ------------- --------- -----------------------
Trading Account Income - - - - - -
------------- ------------ ------------- --------- -----------------------
Foreign Exchange Income - - - - - -
------------- ------------ ------------- --------- -----------------------
Trust Revenue 1,361 1,414 1,570 4,345 1,314 5,322
------------- ------------ ------------- --------- -----------------------
Service Charges on Deposits 3,415 3,588 4,084 11,087 3,141 12,099
------------- ------------ ------------- --------- -----------------------
Mortgage Banking Income 1,303 660 1,057 3,020 1,246 5,146
------------- ------------ ------------- --------- -----------------------
Fee Income from Investment Product Sales 392 459 398 1,249 393 1,725
------------- ------------ ------------- --------- -----------------------
Other Noninterest Income 4,487 5,192 4,969 14,648 4,056 17,362
------------- ------------ ------------- --------- -----------------------
Total Noninterest Income(excludes
securities gains/losses) 10,958 11,313 12,078 34,349 10,150 41,654
------------- ------------ ------------- --------- -----------------------
Employee Comp. & Benefit Expense 14,778 15,477 17,633 47,888 14,055 56,181
------------- ------------ ------------- --------- -----------------------
Occupancy & Equipment Expense 3,954 3,680 4,323 11,957 3,281 14,133
------------- ------------ ------------- --------- -----------------------
Foreclosed Property Expense - - - - - -
------------- ------------ ------------- --------- -----------------------
Amortization of Intangibles 355 359 594 1,308 299 1,022
------------- ------------ ------------- --------- -----------------------
(Excludes Servicing and Credit Card Intangibles)
Other Noninterest Expense 6,434 6,728 7,486 20,648 6,049 24,695
------------- ------------ ------------- --------- -----------------------
Total Noninterest Exp. 25,521 26,244 30,036 81,801 23,684 96,031
------------- ------------ ------------- --------- -----------------------
Minority Interest Expense - - - - - -
------------- ------------ ------------- --------- -----------------------
Net Income Before Taxes 14,903 16,273 18,082 49,258 5,370 43,430
------------- ------------ ------------- --------- -----------------------
Tax Provision 3,535 4,093 4,349 11,977 951 8,697
------------- ------------ ------------- --------- -----------------------
Net Inc. from continuing operations 11,368 12,180 13,733 37,281 4,419 34,733
------------- ------------ ------------- --------- -----------------------
Net inc. from discontinued operations - - - - 6,585 8,621
------------- ------------ ------------- --------- -----------------------
Net Income $ 11,368 $ 12,180 $ 13,733 $ 37,281 $ 11,004 $ 43,354
------------- ------------ ------------- --------- -----------------------
EARNINGS PER SHARE:
Basic
------------- ------------ ------------- --------- ----------- -----------
Net income (1) $ 0.37 $ 0.40 $ 0.40 $ 1.17 $ 0.37 $ 1.46
------------- ------------ ------------- --------- ----------- -----------
Diluted
------------- ------------ ------------- --------- ----------- -----------
Net income (1) $ 0.36 $ 0.39 $ 0.39 $ 1.14 $ 0.36 $ 1.42
------------- ------------ ------------- --------- ----------- -----------
Average Shares Basic (1) 30,422,879 30,758,795 34,446,057 31,996,854 29,766,172 29,766,614
------------- ------------ ------------- ---------- ----------- -----------
Average Shares Diluted (1) 31,222,114 31,457,078 35,077,739 32,698,025 30,486,932 30,513,779
------------- ------------ ------------- ---------- ----------- -----------
Dividends on Preferred Stock ($000s) $ - $ - $ - $ - $ - $ -
------------- ------------ ------------- ---------- ----------- -----------
(1) restated for a 5 for 4 stock split paid September 30, 2004, and a 5% stock dividend paid September 30, 2003.
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/04
AVERAGE BALANCE SHEET ($OOOs)
As of For QTR For QTR For QTR For QTR
PAGE: 3 of 7 9/30/2004 Ended 3/31/04 Ended 6/30/04 Ended 9/30/04 Ended 12/31/03
(YTD AVG) QTRLY AVG QTRLY AVG QTRLY AVG QTRLY AVG
----------------------------------------------------------------------
Total Loans (net of unearned) 2,516,991 2,284,094 2,470,219 2,793,620 2,193,251
------------ ------------ ------------ ------------ ------------
Loan Loss Reserve (53,693) (50,108) (52,458) (58,462) (47,152)
------------ ------------ ------------ ------------ ------------
Investment Securities (incl. trading assets) 962,015 904,073 951,379 1,029,847 867,648
------------ ------------ ------------ ------------ ------------
Other Earning Assets 11,816 13,815 11,384 10,266 17,738
------------ ------------ ------------ ------------ ------------
Total Earning Assets (net of loan loss reserve) 3,437,129 3,151,874 3,380,524 3,775,271 3,031,485
------------ ------------ ------------ ------------ ------------
Total Assets 3,839,800 3,493,626 3,767,840 4,251,298 3,314,490
------------ ------------ ------------ ------------ ------------
Savings 211,172 186,176 208,720 238,322 136,883
------------ ------------ ------------ ------------ ------------
NOW Accounts 608,424 553,772 541,641 728,540 584,956
------------ ------------ ------------ ------------ ------------
Money Market Accounts 644,324 616,498 636,200 679,882 613,920
------------ ------------ ------------ ------------ ------------
Certificates 712,337 643,815 697,847 794,447 663,003
------------ ------------ ------------ ------------ ------------
Total Int. Bearing Deposits 2,176,257 2,000,261 2,084,408 2,441,191 1,998,762
------------ ------------ ------------ ------------ ------------
Non-Interest Bearing Deposits 443,306 387,331 438,509 503,414 376,935
------------ ------------ ------------ ------------ ------------
Total Deposits 2,619,563 2,387,592 2,522,917 2,944,605 2,375,697
------------ ------------ ------------ ------------ ------------
Short-Term Borrowings 547,516 558,756 562,631 521,449 399,924
------------ ------------ ------------ ------------ ------------
Long-Term Borrowings 303,000 224,029 326,336 355,941 225,721
------------ ------------ ------------ ------------ ------------
Total Int. Bearing Liabilities
(incl. non-int bearing deposits) 3,470,079 3,170,377 3,411,884 3,821,995 3,001,342
------------ ------------ ------------ ------------ ------------
Total Int. Bearing Liabilities 3,026,773 2,783,046 2,973,375 3,318,581 2,624,407
------------ ------------ ------------ ------------ ------------
Total Shareholder's Equity 341,350 299,338 323,641 400,421 282,165
------------ ------------ ------------ ------------ ------------
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/04
PAGE: 4 of 7
FOR QUARTER FOR QUARTER FOR QUARTER YEAR TO FOR QUARTER YEAR
ENDED ENDED ENDED DATE ENDED ENDED
CHARGEOFFS ($000s) 3/31/2004 6/30/2004 9/30/2004 9/30/2004 9/30/2003 12/31/2003
Loan Chargeoffs $ 1,207 $ 1,039 $ 2,176 $ 4,422 $ 2,688 $ 12,344
----------- ----------- ------------ ------------- ------------------------
Recoveries on Loans $ 334 $ 930 $ 932 $ 2,196 $ 860 $ 5,497
----------- ----------- ------------ ------------- ------------------------
Net Loan Chargeoffs $ 873 $ 109 $ 1,244 $ 2,226 $ 1,828 $ 6,847
----------- ----------- ------------ ------------- ------------------------
AS OF AS OF AS OF AS OF
ASSET QUALITY AND OTHER DATA ($000s) 3/31/2004 6/30/2004 9/30/2004 12/31/2003
Nonaccrual Loans $ 11,583 $ 10,690 $ 13,102 $ 13,673
----------- ----------- ------------ -------------
Renegotiated Loans - - - -
----------- ----------- ------------ -------------
Other Real Estate Owned 616 747 793 735
----------- ----------- ------------ -------------
Total Nonperforming Assets 12,199 11,437 13,895 14,408
----------------------- ------------ -------------
Loans 90+ Days Past Due & Still Accruing 258 195 320 318
----------- ----------- ------------ -------------
NPAs plus Loans over 90 $ 12,457 $ 11,632 $ 14,215 $ 14,726
----------- ----------- ------------ -------------
AS OF AS OF AS OF AS OF
REGULATORY CAPITAL DATA ($000s) 3/31/2004 6/30/2004 9/30/2004 12/31/2003
Tier 1 Capital $ 293,920 $ 319,271 $ 325,442 $ 250,259
----------- ----------- ------------ -------------
Tier 1 Ratio (%) 11.12% 10.21% 10.17% 9.74%
----------- ----------- ------------ -------------
Total Capital (Tier 1 + Tier 2) $ 327,174 $ 358,574 $ 365,656 $ 282,581
----------- ----------- ------------ -------------
Total Capital Ratio (%) 12.38% 11.47% 11.43% 11.00%
----------- ----------- ------------ -------------
Total Risk-Adjusted Assets $2,643,385 $ 3,126,104 $ 3,199,950 $ 2,568,838
----------- ----------- ------------ -------------
Tier 1 Leverage Ratio 9.20% 8.96% 8.04% 7.84%
----------- ----------- ------------ -------------
AS OF AS OF AS OF YEAR TO
SUPPLEMENTAL DATA ($000s) 3/31/2004 6/30/2004 9/30/2004 DATE
9/30/2004
1-4 Family Mortgage Loans Serviced For Others $ 172,147 $ 79,185 $ 116,437
----------- ----------- ------------
Propriety Mutual Fund Balances $ - $ - $ -
----------- ----------- ------------
(Net Asset Value in $000s)
Held to Maturity Securities (Fair Value) $ - $ - $ 50,378
----------- ----------- ------------
Return on Avg. Assets (annualized) 1.30% 1.30% 1.28% 1.29%
----------- ----------- ------------ -------------
Return on Avg. Equity (annualized) 15.2% 15.1% 13.6% 14.6%
----------- ----------- ------------ -------------
Return on Avg. Tangible Equity (annualized)(1) 24.1% 25.2% 26.8% 25.5%
----------- ----------- ------------ -------------
Common Stock Dividends (total $ in period) $ 5,809 $ 5,841 $ 6,637 $ 18,287
----------- ----------- ------------ -------------
EOP Employees (Full Time Equivalent) 943 959 1,075
----------- ----------- ------------
(1) Reconciliation Table for Non-GAAP Financial Measure
Return on average shareholders' equity 15.2% 15.1% 13.6% 14.6%
Effect of goodwill and intangibles 8.9% 10.1% 13.2% 10.9%
Return on average tangible equity 24.1% 25.2% 26.8% 25.5%
Average tangible equity excludes acquisition related average goodwill and intangibles:
Average shareholders' equity $299,338 $323,640 $400,421 $341,348
Average goodwill and intangibles (111,039) (129,799) (197,397) (146,262)
Average tangible equity 188,299 193,841 203,024 195,086
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/04
PAGE: 5 of 7 AS OF AS OF AS OF AS OF AS OF
PERIOD END BALANCES: 3/31/2004 6/30/2004 9/30/2004 12/31/2004 12/31/2003
Loan Breakdown: (regulatory)
Commercial/Industrial $ 412,752 $ 458,499 $ 481,870 $ - $ 396,271
---------------------- ----------- ----------- -----------
Commercial Real Estate 918,485 1,056,036 1,082,968 - 899,686
---------------------- ----------- ----------- -----------
Residential Mortgage (including multi-family) 474,572 591,049 543,197 - 450,630
---------------------- ----------- ----------- -----------
Real Estate Construction (and Land Development) 134,808 191,045 191,107 - 149,531
---------------------- ----------- ----------- -----------
Home Equity (revolving and 2nd lien) 244,685 293,071 321,462 - 233,502
---------------------- ----------- ----------- -----------
Consumer (Loans to Individuals) 52,172 61,948 65,455 - 54,466
---------------------- ----------- ----------- -----------
Bank Card - - - - -
---------------------- ----------- ----------- -----------
Foreign - - - - -
---------------------- ----------- ----------- -----------
(Other) 89,989 120,812 127,872 - 86,613
-------------------------------------- ---------------------- ----------- ----------- -----------
Total Loans (net of unearned) 2,327,463 2,772,460 2,813,931 - 2,270,699
---------------------- ----------- ----------- -----------
Investment Securities (incl. trading assets) 941,761 1,010,776 1,078,760 - 934,375
---------------------- ----------- ----------- -----------
Other Earning Asset 4,348 38,762 31,518 - 2,233
---------------------- ----------- ----------- -----------
Total Earning Assets (net of loan loss reserve) 3,223,418 3,764,589 3,866,818 - 3,158,042
---------------------- ----------- ----------- -----------
Total Assets 3,567,191 4,254,345 4,339,256 - 3,512,574
---------------------- ----------- ----------- -----------
Deposit Breakdown:
Savings 190,198 285,147 225,462 - 180,919
---------------------- ----------- ----------- -----------
NOW Accounts 519,359 619,142 922,843 - 608,220
---------------------- ----------- ----------- -----------
Money Market Accounts 620,978 672,929 647,854 - 600,932
---------------------- ----------- ----------- -----------
Certificates 507,222 570,386 607,582 - 529,594
---------------------- ----------- ----------- -----------
CDs>$100m 140,155 207,593 223,234 - 129,011
---------------------- ----------- ----------- -----------
Foreign CDs - -
---------------------- ----------- ----------- -----------
(as needed) - - - - -
-------------------------------------- ---------------------- ----------- ----------- -----------
Total Int. Bearing Deposits 1,977,912 2,355,197 2,626,975 - 2,048,676
---------------------- ----------- ----------- -----------
Non-Interest Bearing Deposits 405,529 499,067 522,683 - 386,620
---------------------- ----------- ----------- -----------
Total Deposits 2,383,441 2,854,264 3,149,658 - 2,435,296
---------------------- ----------- ----------- -----------
Short-Term Borrowings 571,649 617,456 380,819 - 510,038
---------------------- ----------- ----------- -----------
Long-Term Debt 258,914 358,445 357,530 - 227,287
---------------------- ----------- ----------- -----------
Total Int. Bearing Liabilities (incl. non-int bearing
deposits) 3,214,004 3,830,165 3,888,007 - 3,172,621
---------------------- ----------- ----------- -----------
Total Int. Bearing Liabilities 2,808,475 3,331,098 3,365,324 - 2,786,001
---------------------- ----------- ----------- -----------
Total Stockholders Equity $ 328,861 $ 397,872 $ 423,041 $ - $ 317,813
---------------------- ----------- ----------- -----------
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/04
PAGE: 6 of 7
AS OF AS OF AS OF AS OF
PERIOD END BALANCES: 3/31/2004 6/30/2004 9/30/2004 12/31/2003
Loan Breakdown: (internal)
Business Purpose Loans $1,120,566 $ 1,258,987 $ 1,272,117 $ 1,084,419
---------------- -------------- -------------- --------------
Residential Mortgage 247,835 457,913 283,482 229,995
---------------- -------------- -------------- --------------
Commercial Real Estate, Construction and Land Dev 723,965 766,827 953,380 721,471
---------------- -------------- -------------- --------------
Consumer (loans to Individual) 235,097 288,733 304,952 234,814
---------------- -------------- -------------- --------------
Total Loans (net of unearned) $2,327,463 $ 2,772,460 $ 2,813,931 $ 2,270,699
---------------- -------------- -------------- --------------
Financial Update for NATL PENN BCSHS (NPBC) FOR 09/30/04
PAGE 7 OF 7
BALANCE AND YIELD/COST ANALYSIS: AS OF AS OF AS OF AS OF YTD
3/31/2004 6/30/2004 9/30/2004 12/31/2003 9/30/2004
Qtr Avg Bal Yield Qtr Avg Bal Yield Qtr Avg Bal Yield Qtr Avg Bal Yield YTD Avg Bal Yield
Total Loans (net of unearned) $ 2,284,094 6.06% $2,470,219 5.87% $2,793,620 6.03% $1,870,513 6.82% $ 2,516,991 5.99%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Investment Securities (incl.
trading assets) 904,073 5.19% 951,379 5.05% 1,029,847 4.94% 668,124 6.34% 962,015 5.05%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Other Earning Assets 13,815 0.84% 11,384 0.35% 10,266 1.20% 69,401 1.26% 11,816 0.78%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Total Earning Assets 3,201,982 5.79% 3,432,982 5.63% 3,833,733 5.72% 2,608,038 6.55% 3,490,822 5.71%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Total Earning Assets (net of
loan loss reserve) 3,151,874 5.89% 3,380,524 5.71% 3,775,271 5.81% 2,565,466 6.65% 3,437,129 5.80%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Total Assets 3,493,626 5.31% 3,767,840 5.13% 4,251,298 5.16% 2,825,983 6.04% 3,839,800 5.19%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Savings 186,176 0.86% 208,720 0.78% 238,322 0.71% 106,129 0.63% 211,172 0.78%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
NOWAccounts 553,772 0.94% 541,641 0.90% 728,540 1.02% 396,709 1.19% 608,424 0.96%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Money Market Accounts 616,498 0.90% 636,200 0.88% 679,882 0.94% 514,244 0.94% 644,324 0.91%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Certificates 643,815 3.13% 697,847 3.02% 794,447 2.98% 724,255 3.39% 712,337 3.04%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Total Int. Bearing Deposits 2,000,261 1.62% 2,084,408 1.59% 2,441,191 1.61% 1,741,337 2.00% 2,176,257 1.61%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Non-Interest Bearing Deposits 387,331 438,509 503,414 292,061 443,306
---------- ----- ---------- ---------- ----------- ------------
Total Deposits 2,387,592 1.36% 2,522,917 1.31% 2,944,605 1.33% 2,033,398 1.71% 2,619,563 1.33%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Short-Term Borrowings 558,756 1.15% 562,631 1.11% 521,449 1.29% 287,572 1.33% 547,516 1.18%
---------- ----- ---------- ----- - --------- ----------------- ------ ------------ ------
Long-Term Borrowings 224,029 5.39% 326,336 4.91% 355,941 4.90% 233,686 5.90% 303,000 5.03%
---------- ----- ---------- ----- - --------- ----------------- ------ ------------ ------
Total Int. Bearing Liabilities
(incl. non-int bearing deposits) 3,170,377 1.61% 3,411,884 1.62% 3,821,995 1.66% 2,554,656 2.05% 3,470,079 1.63%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Total Int. Bearing Liabilities 2,783,046 1.83% 2,973,375 1.86% 3,318,581 1.91% 2,262,595 2.32% 3,026,773 1.87%
---------- ----- ---------- ----- ---------- ----------------- ------ ------------ ------
Total Shareholder's Equity $ 299,338 $ 323,641 $ 400,421 $ 246,105 $ 341,350
---------- ---------- ---------- ----------- ------------
-----
Net Yield on Earning Assets (net
of loan loss reserve): (Margin) 4.27% 4.08% 4.13% 4.61% 4.15%
----- ----- ------ ------ ------
Net Yield on Earning Assets: (Margin) 4.20% 4.01% 4.07% 4.54% 4.09%
----- ----- ------ ------ ------
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 73
-------- ---------
Total Number of Banking Offices 73
---------
Total Number of Insured Subsidiaries
(Bank & Thrift Subsidiaries) 1
---------
Total Number of ATMs 72
---------
MD 1
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Total Number of Banking Offices 1
---------
Total Number of Insured Subsidiaries
(Bank & Thrift Subsidiaries) 0
---------
Total Number of ATMs 1
---------
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:
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Reason:
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