EXHIBIT 99.2
PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma combined balance sheet and condensed
statements of income present combined financial information for National Penn
Bancshares, Inc. ("NPB") and Elverson National Bank ("ENB") assuming that NPB
and ENB had been combined for each period presented on a pooling of interests
accounting basis.
PRO FORMA COMBINED CONDENSED BALANCE SHEET
AS OF DECEMBER 31, 1998
(Dollars in thousands)
(unaudited)
NPB Elverson Pro Forma Combined
(Historical) (Historical) Adjustments Pro-Forma
----------- ----------- ----------- -----------
ASSETS
Cash and due from banks $ 46,574 $ 8,450 $ 0 $ 55,024
Interest bearing deposits in banks 3,527 7,250 0 10,777
---------- ---------- ---------- ----------
Total cash and cash equivalents 50,101 15,700 0 65,801
Term funds sold 0 15,000 (15,000)(1) 0
Trading account securities 21,589 0 0 21,589
Investment securities available for sale at market value 421,738 101,303 0 523,041
Loans, less allowance for loan losses of
$27,346 and $3,489, respectively 1,220,673 184,299 0 1,404,972
Premises and equipment, net 19,248 4,359 0 23,607
Accrued interest receivable 12,419 2,173 0 14,592
Investments, at equity 4,728 0 0 4,728
Bank-owned life insurance 41,604 0 0 41,604
Other assets 19,494 1,820 0 21,314
---------- ---------- ---------- ----------
Total assets $1,811,594 $ 324,654 ($ 15,000) $2,121,248
========== ========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest bearing deposits $ 175,234 $ 47,582 0 $ 222,816
Interest bearing deposits 1,032,827 217,659 0 1,250,486
---------- ---------- ---------- ----------
Total deposits 1,208,061 265,241 0 1,473,302
Securities sold under repurchase agreements
and federal funds purchased 160,864 13,722 (15,000)(1) 159,586
Short-term borrowings 4,058 15,074 0 19,132
Long-term borrowings 248,478 149 0 248,627
Guaranteed preferred beneficial interests in
Company's subordinated debentures 40,250 0 0 40,250
Accrued interest payable and other liabilities 19,427 2,150 0 21,577
---------- ---------- ---------- ----------
Total liabilities 1,681,138 296,336 (15,000) 1,962,474
Shareholders' equity
Preferred stock 0 0 0 0
Common stock, no stated par value 93,360 3,253 17,681 (2) 114,294
Additional paid-in capital 0 17,681 (17,681)(2) 0
Retained earnings 28,013 6,914 0 34,927
Accumulated other comprehensive income 9,083 470 0 9,553
---------- ---------- ---------- ----------
Total shareholders' equity 130,456 28,318 0 158,774
---------- ---------- ---------- ----------
Total liabilities and shareholders' equity $1,811,594 $ 324,654 ($ 15,000) $2,121,248
========== ========== ========== ==========
<FN>
- --------------------
(1) Pro forma adjustment to eliminate federal funds transaction.
(2) Pro forma adjustment to reflect no par value common stock.
(3) Historical and pro-forma common stock outstanding as of December 31, 1998
were as follows:
</FN>
NPB Elverson Adjustments Pro-Forma
---------- ---------- ----------- ----------
NPB common stock (historical) 13,168,058 --- --- 13,168,058
Elverson common stock (historical) --- 2,602,117 (2,602,117) ---
Elverson common stock outstanding times
Exchange Ratio 1.46875 --- --- 3,821,564 (4) 3,821,564
-------- ---------- ---------- ---------- ----------
Total common stock outstanding 16,989,622
==========
<FN>
(4) Excludes 295 fractional shares paid in cash
</FN>
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR YEAR ENDED DECEMBER 31, 1998
(Dollars in thousands, except per share data)
(unaudited)
NPB Elverson Pro Forma Combined
(Historical)(1) (Historical)(1) Adjustments Pro-Forma
----------- ----------- ------------ -----------
Interest income $ 131,910 $ 22,409 ($ 238)(2) $ 154,081
Interest expense 67,002 9,843 (238)(2) 76,607
----------- ----------- ----------- -----------
Net interest income 64,908 12,566 0 77,474
Provision for loan and lease losses 5,100 860 0 5,960
----------- ----------- ----------- -----------
Net interest income after
provision for loan and lease losses 59,808 11,706 0 71,514
Other income 16,997 1,724 0 18,721
Other expense 51,283 9,949 0 61,232
----------- ----------- ----------- -----------
Income before income taxes 25,522 3,481 0 29,003
Income taxes 5,039 1,046 0 6,085
----------- ----------- ----------- -----------
Net income $ 20,483 $ 2,435 $ 0 $ 22,918
=========== =========== =========== ===========
Per share data:
Net Income per share of common stock - basic $ 1.55 $ 0.94 $ 1.35
Net Income per share of common stock - diluted $ 1.52 $ 0.94 $ 1.32
Average shares outstanding - basic 13,177,765 2,593,720 1,215,806 (3) 16,987,291
Average shares outstanding - diluted 13,495,212 2,603,690 1,220,480 (3) 17,319,382
<FN>
- -------------------------------
(1) Merger expenses are included in the historical information for NPB and
Elverson.
(2) Pro forma adjustment to eliminate interest on federal funds transaction.
(3) Additional NPB shares issued using exchange ratio of 1.46875
</FN>
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR YEAR ENDED DECEMBER 31, 1997
(Dollars in thousands, except per share data)
(unaudited)
NPB Elverson Pro Forma Combined
(Historical) (Historical) Adjustments (1) Pro-Forma
----------- ----------- ----------- -----------
Interest income $ 119,027 $ 20,477 $ 0 $ 139,504
Interest expense 54,620 8,627 0 63,247
----------- ----------- ----------- -----------
Net interest income 64,407 11,850 0 76,257
Provision for loan and lease losses 4,575 988 0 5,563
----------- ----------- ----------- -----------
Net interest income after
provision for loan and lease losses 59,832 10,862 0 70,694
Other income 12,082 1,532 0 13,614
Other expense 46,147 8,270 0 54,417
----------- ----------- ----------- -----------
Income before income taxes 25,767 4,124 0 29,891
Income taxes 7,151 1,193 0 8,344
----------- ----------- ----------- -----------
Net income $ 18,616 $ 2,931 $ 0 $ 21,547
=========== =========== =========== ===========
Per share data:
Net Income per share of common stock - basic $ 1.40 $ 1.14 $ 1.26
Net Income per share of common stock - diluted $ 1.37 $ 1.14 $ 1.24
Average shares outstanding - basic 13,339,318 2,570,642 1,204,988(2) 17,114,948
Average shares outstanding - diluted 13,628,447 2,572,672 1,205,940(2) 17,407,059
<FN>
- ---------------------------
(1) No pro forma adjustments were made for Merger expenses.
(2) Additional NPB shares issued using exchange ratio of 1.46875
</FN>
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR YEAR ENDED DECEMBER 31, 1996
(Dollars in thousands, except per share data)
(unaudited)
NPB Elverson Pro Forma Combined
(Historical) (Historical) Adjustments (1) Pro-Forma
----------- ------------ ----------- -----------
Interest income $ 106,558 $ 18,113 $ 0 $ 124,671
Interest expense 46,018 7,896 0 53,914
----------- ----------- ----------- -----------
Net interest income 60,540 10,217 0 70,757
Provision for loan and lease losses 3,900 600 0 4,500
----------- ----------- ----------- -----------
Net interest income after
provision for loan and lease losses 56,640 9,617 0 66,257
Other income 9,088 1,065 0 10,153
Other expense 41,258 7,332 0 48,590
----------- ----------- ----------- -----------
Income before income taxes 24,470 3,350 0 27,820
Income taxes 7,548 983 0 8,531
----------- ----------- ----------- -----------
Net income $ 16,922 $ 2,367 $ 0 $ 19,289
=========== =========== =========== ===========
Per share data:
Net Income per share of common stock - basic $ 1.27 $ 0.93 $ 1.13
Net Income per share of common stock - diluted $ 1.25 $ 0.93 $ 1.12
Average shares outstanding - basic 13,349,418 2,543,915 1,192,460(2) 17,085,793
Average shares outstanding - diluted 13,486,766 2,544,048 1,192,523(2) 17,223,337
<FN>
- ---------------------------
(1) No pro forma adjustments were made for Merger expenses.
(2) Additional NPB shares issued using exchange ratio of 1.46875
</FN>